An old law that needs updating but must be fully implemented

More than 15 years ago, the Philippines passed what was then regarded as the most radical and forward-looking clean air standard ever set by an Asian country. It stipulated Euro IV standards for fuels and vehicles by 2016, something China had only considered in the middle of the previous decade.

But time and an absence of change has made these bragging rights near obsolete today since we now have Euro V and Euro VI standards as the norm for new motor engines and fuels that are sold in some of the more developed world markets.

Yes, the Clean Air Act of 1999 is nearing its obsolescence, and it will soon urgently need some tweaking to make it relevant to the needs of the times.

But even then, in the law’s dying moments, there are protests from both fuel suppliers and engine manufacturers about them “not being ready” to conform with the stipulated Euro IV standards by Jan. 1, 2016.

For some of the car manufacturers, including Toyota Motor Philippines which holds the dominant market share in the local market, they still have way too many vehicles in stock that are still Euro II compliant, and thus will need more time to unload these to the Philippine market.

On the oil industry’s side, a few holdouts have simpered about potential difficulties they may face, including the inevitability of raising prices, when they start supplying Euro IV standard diesel and gasoline to their service stations by the first of 2016 or even earlier.

And to think the Clean Air Act was penned into law in the middle of 1999, which is more than 16 years ago. There has been more than ample time for the industries affected to prepare – well, of course, if they really believed in the reasons why the law had been crafted.

Deteriorating air quality

One of the more compelling arguments that had won the public’s support for the Clean Air Act then was the worsening air condition in Metro Manila. Quite alarmingly at that time, there was a perpetual cap of haze (or smog) that could be visibly seen on EDSA’s skies even early in the day.

With the passage and subsequent implementation of the law, but without much fanfare, smoke emission levels seemingly dropped. Of course, fuel standards were not the only reason for this: there was also strict enforcement of vehicle engine maintenance among public utility buses.

Another consequence of the new law, but to a lesser degree, were the health benefits noted on the respiratory condition of Metro Manila residents, particularly children. The change, though, was not enough to make the Philippines a model in health governance, especially since there was continued rampant tobacco smoking among urbanites and its youths.

Today, the Philippines still counts as among the countries in the world which could do more to improve its environment standards and current air condition. Hence, not only is there a need to bring vehicle fuel and engine standards to better levels, but also to think longer term about new strategies that would improve the country’s air quality.

Minding the environment

Notwithstanding the radical drop in current oil prices, which should still be viewed as something temporary, the world has to keep its focus on cleaning up the environment – not only because of the dreaded global warming phenomenon, but also to make the world a healthier place for people to live in.

Aside from improving current fossil fuel specifications and engine efficiencies, the development of alternative but cleaner energy sources must continue. Electric and hybrid modes of transportation, as well as biofuels, must continue to receive government support.

While motor engines are a major source of air pollutants, stationary engines especially for power generation contribute a fairly sizeable amount of particulate emissions and harmful gases that is reportedly a source of the world ozone layer’s deterioration. Standards for these engines must also be improved.

No excuses

Going back to those who want to delay the implementation of the Euro IV standards for vehicle engines and fuels, now that there’s less than four months to go before d-date, it’s time to think of compliance – not avoidance.

Those in the automotive industry should start sending orders for the compliant vehicles to make it in time for the 2016 deadline. In the same breath, they should commence with finding new markets where they will “dump” the Euro II-compliant stocks they still have here.

Euro IV engines, especially diesel, allow for lower carbon dioxide emissions as well as lower levels of other harmful gases like nitrogen oxide. It is imperative that delays in modernizing fuel engines be mitigated.

The oil industry, on the other hand, should commence placement of orders for the importation of Euro IV fuels while they draw down on their current Euro II-conforming stocks. The Energy department recently encouraged oil companies to offer Euro IV fuels earlier than the Jan. 1, 2016 deadline.

Currently, Euro II fuels have 10 times more particulate emissions than Euro IV diesel and fuel, which will be a big jump from the current 500 parts per million (ppm) that are emitted by Euro II diesel and gasoline.

Benzene levels for Euro II gasoline are at five percent, and these would drop to one percent of volume with the entry of Euro IV fuels. Aromatics of Euro IV fuels would contain only 35 percent by volume, as compared to the current no limit of Euro 2 fuel.

Unioil is credited for first introducing Euro IV diesel in the Philippines (imported in 2012). Petron Corp., on the other hand, imported the base of their Petron Blaze 100 Euro 4 gasoline in 2013, which was especially formulated to meet the Euro 4 standard.

Recently, however, with the completion of the expansion of its Bataan refinery, Petron announced that all of its four gasoline variants are now Euro IV-compliant, and more importantly, being manufactured locally. Production from the Bataan refinery of Euro IV-compliant diesel is expected soon.

For the smaller oil players like Shell and Caltex, the only available option for them at this point in time is to import Euro IV fuels. Shell is not keen on upgrading its Batangas refinery, while Caltex has downsized its refinery (also in Batangas) and is now just a storage depot.

These multinational oil companies find it more economical to rely on the bigger refineries they have outside of the Philippines.

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