New Action Plan to Improve Air Quality

A. INTRODUCTION

A comprehensive vehicle emission control programme was set out in the Chief Executive's Policy Address last October. The Government has reviewed the progress on the programme and announced further initiatives to tackle air pollution problems.

B. PROGRESS OF 1999 POLICY ADDRESS MEASURES

1. Phasing out Diesel Taxis

• Other than the four temporary LPG refuelling stations in operation, construction of five large LPG refuelling stations is underway. These five stations will begin operation by the end of 2000.

• The LPG refuelling capacity would be increased to around 8,000 taxis by end-2000. Our objective is to provide sufficient LPG refuelling capacity for the entire taxi fleet by the end of 2001.

• The price of LPG to be sold in the 5 large LPG refuelling stations will be capped for the first year of operation and subject to a pricing formulae for the rest of the operating period. This will cut the operating costs of a taxi by about $45,000 each year.

• Subject to the Legislative Council Finance Committee's funding approval, a one-off grant of $40,000 would be made available to diesel taxi owners who choose to replace their diesel taxis with LPG taxis.

• The low LPG price and the financial incentive of $40,000 per diesel taxi provide a strong incentive for taxi owners to switch to LPG vehicle.

2. Phasing out Diesel Light Buses

• A trial of electric and LPG light buses will start next month (June 2000).

• Planning has been undertaken to ensure additional LPG refuelling capacity to meet demands from light buses within 2002.

3. Particulate Traps

• A $50.88 million commitment has been approved by the Legislative Council Finance Committee for providing a one-off grant to assist some 42 400 vehicle owners to retrofit their pre-Euro diesel light vehicles with particulate traps to reduce their emissions.

4. Diesel Catalysts

• A trial of diesel catalysts has been launched since February 2000 and will last for 12 months.

• It will enable a specification for catalysts suitable for local large diesel vehicles to the established.

• We plan to assist owners of pre-Euro large diesel vehicles to retrofit their vehicles with suitable diesel catalysts in 2001 pending the findings of the trial.

5. Enforcement against Smoky Vehicles

• The Secretary for the Environment and Food has signed a resolution to increase the fixed penalty for smoky vehicle offences to $1,000. It is due to be debated at the Legislative Council meeting on May 31, 2000.

• We intend to introduce chassis dynamometer tests for large diesel vehicles later this year

• From September 2000, all diesel vehicles, which are required to attend roadworthiness inspections, will have to go through a more thorough smoke test procedure.

6. Promote Proper Maintenance and Eco-driving Technique

• Training sessions have been provided by the Environmental Protection Department and the Vocational Training Council for vehicle mechanics on proper engine repair to reduce smoke emissions.

• Discussion sessions and workshop have been held with the transport trades and vehicle mechanics to promote understanding of the dynamometer smoke test.

• A new course on the diagnosis and repair of smoky diesel vehicles has started since March 2000.

• A Working Group on Vehicle Maintenance Services comprising representative from the trade, government departments and professional bodies has been formed since January 2000 to study ways to improve vehicle maintenance standards.

• Seminars on eco-driving have been organized to promote good driving and maintenance habits to reduce smoke emissions.

7. Emission Requirements for Newly Registered Vehicles and Auto Fuels

• In keeping with the policy of adopting the most stringent practical emission standards for all new vehicles, the Government will introduce the Euro III standard in Hong Kong in parallel with its adoption in the European Union next year.

• To support the introduction of the Euro III emission standards, the Government is seeking to tighten the auto diesel and unleaded petrol requirements by January 2001.

In view of the increased public awareness of the seriousness of threat of air pollution to health and prospects of Hong Kong, the Government intends to pursue the following additional initiatives to tackle air pollution:

1. Ultra-low Sulphur Diesel (ULSD)

Benefits : Use of ULSD reduces particulate emissions from different categories of diesel vehicle by between 10 and 30 per cent and nitrogen oxides by about five per cent.

Way Forward : All Government diesel vehicles are to use ULSD with the first batch of 100 by July and the remaining by end of 2000.

The franchised bus companies will be asked to switch over to ULSD together with the Government fleet.

A differential duty will be devised to offset the higher cost of ULSD so that it can be sold at a competitive price with standard diesel in a bid to encourage all drivers of diesel vehicles to switch to ULSD.

2. Incentives for Cleaner Vehicles

Benefit : Natural gas powered (either compressed or liquefied) vehicles have low emissions comparable to LPG --- virtually no particulate; 20-50 per cent less nitrogen oxide and 20 - 60 per cent less hydrocarbon than the present diesel standards (Euro II).

Hybrid vehicles --- combined diesel or petrol and electric motors --- have up to 50 per cent less emissions than fully diesel or petrol equivalents.

Fuel cell technology --- which converts hydrogen into electric power --- offers the prospect of only trace emissions at street level.

Way Forward : The Government will introduce an incentive scheme to encourage the trial and introduction of vehicles using these new fuels or technologies.

3. Acceleration of Replacement of Old Vehicles

Benefits : More rapid replacement of older vehicles will bring forward the benefit of reduced emissions associated with new vehicles.

Way Forward : A package of measures to encourage the scrapping of pre-Euro vehicles and replacement by cleaner new alternatives will be prepared.

4. Cleaner Light Vans and Light Goods Vehicles

Benefits : There are over 73 000 light diesel vehicles apart from taxis and light buses. They emit about 25 per cent of the particulates and 13 per cent of the nitrogen oxides in the main urban areas.

Introducing ULSD, particulate traps and Euro III engines for new vehicles in this category will cut particulate emissions by five per cent.

Petrol alternatives to diesel light vans are already available on the market. Compared with diesel, they emit over 90 per cent less particulate and 20 to 50 per cent less nitrogen oxides.

Way Forward : We will consider practical ways of phasing out light diesel vehicles.

5. Enhanced Hydrocarbon Recovery System

Benefits : Vapour recovery devices on petrol pump can reduce emissions during refilling by 90 per cent.

Way Forward : Legislation will be introduced in the next session to require the installation of such devices in all petrol filling stations.

6. Strengthened Enforcement

Benefits : Sub-standard diesel brought into Hong Kong from the Mainland and industrial diesel illegally diverted to vehicle use has a sulphur content 10 times higher than the current vehicle diesel standard and 100 times greater than ULSD. Removing this fuel from use would cut particulate emissions significantly.

Way Forward : We will consider introducing restrictions on the amount of fuel that may be brought into Hong Kong by cross-boundary traffic, and the requirements for the amount of fuel carried in vehicles leaving the territory.

Amendments to the Dutiable Commodities Ordinance to strengthen the enforcement powers of the Customs and Excise Department against use of illegal diesel are being considered by the Legislative Council Bills Committee.

7. Better Vehicle Maintenance

Benefit : Significantly reduces vehicle emissions from both diesel and petrol vehicles.

Way Forward : A basic emission test will be extended to all commercial vehicles in September 2000.

Consideration will be given to further tightening the emission testing system by requiring use of chassis dynamometers during roadworthiness inspections.

A review of current legislation is being undertaken to establish the most efficient means for introducing increased sanctions against repeated smoky vehicle offenders.

8. Restraints on Vehicle Numbers and Road Use

Benefit : Introducing restraint on vehicle numbers and road use can prevent the benefits of other emission reduction measures being eroded over time.

Way Forward : The requirement for new measures to restrain vehicle number or road use will be evaluated in conjunction with assessment of the capacity of railway development and other transport planning measures to meet transport demand.

D. TASK FORCE

• A new inter-departmental task force under the chairmanship of the Secretary for the Environment and Food has been established to oversee the implementation of the 1999 Policy Address measures and the additional air pollution control initiatives.

• The task force includes representatives from Economic Services Bureau, Finance Bureau, Health and Welfare Bureau, Planning and Lands Bureau, Transport Bureau , Environmental Protection Department and Transport Department. It will co-opt representatives from the Police, Customs & Excise Department and other bureaux and departments as required.

Environment and Food Bureau

May 20, 2000