DOTC Clean Emission, Clean Air Program (DOTC Clean Air Initiatives Under the Clean Air Act of 1999)

1. DOTC Clean Emission,Clean Air Program(DOTC Clean Air Initiatives Under the Clean Air Act of 1999) 20 October 2005 Partnership for Clean Air General Assembly Asian Development Bank Mr. Reginald S. Velasco Department of Transportation and Communications

2. Philippine Clean Air Act of 1999 In 1999, Congress enacted Republic Act No. 8749, otherwise known as the Philippine Clean Air Act, a landmark legislation setting a comprehensive air quality management policy and program which aims to achieve and maintain healthy air for all the people in the Philippines.

3. The Clean Air Act is guided by the following principles: 1.protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature; 2. promote and protect the global environment while organizing the primary responsibility of local government units to deal with environmental problems;

4. The Clean Air Act is guided by the following principles: 3. recognize that the responsibility of cleaning the habitat and environment is primarily area-based; and 4. recognize that a clean and healthy environment is for the good of all and should therefore be the concern of all.

5. Philippine Clean Air Act of 1999 All potential sources of air pollution (mobile, point and area sources) are covered by Clean Air Act and must comply with the provisions of the law. All emissions must be within the air quality standards. Mobile sources include vehicles like cars, trucks, buses, jeepneys, tricycles, motorcycles and vans. Point sources refer to stationary sources such as industrial firms and the smokestacks of power plants, hotels and other establishments. Area sources refers to sources of emissions other than the above. These include smoking, burning of garbage, and dust from construction, unpaved grounds, etc.

6. The Clean Air Act sets the compliance mandates for mobile sources of air pollution, as follows: 1. Exhaust emission standards for various mobile sources that are either in-use, new, rebuilt, and imported second-hand have been set. 2. All new motor vehicles classified under the Philippine National Standards 1891 of the Bureau of Product Standards of the Department of Trade and Industry, whether locally assembled/manufactured or imported are to be covered by a Certificate of Conformity (COC). The COC is to be issued by the DENR to the motor vehicle manufacturer, assembler or importer.

7. The Clean Air Act sets the compliance mandates for mobile sources of air pollution, as follows: 3. In-use motor vehicles will only be allowed renewal of their registration upon proof of compliance with emission standards through actual testing by the Motor Vehicle Inspection System (MVIS) of the DOTC/LTO, and authorized private emission testing centers. Rebuilt motor vehicles or imported second hand completely built-up or pre-regulated vehicles retrofitted with secondhand engines will only be allowed registration or renewal of registration upon submission of a valid Certificate of Compliance to Emission Standards (CCES) issued by the DOTC. The CCES will only be issued if the exhaust emission standard for that specific motor vehicle is met, as verified by actual testing through the MVIS.

8. The Clean Air Act imposes severe penalties for smoke belchers. Smoke belching vehicles apprehended on the road are subjected to emission testing by properly equipped enforcement teams from the DOTC/LTO or its duly deputized agents. Violators will be subject to the following fines/penalties: 1st offense P 1,000.00 2nd offense P 3,000.00 3rd offense P 5,000.00 plus a seminar on pollution management

9. To achieve clean air, auto fuels and their specifications are set as follows: 1. The complete phase out of leaded gasoline before the end of the year 2000. 2. The lowering of the sulfur content of industrial and automotive diesel, respectively, from 0.5% to 0.3% and 0.2% to 0.05%. 3. The lowering of aromatics in unleaded gasoline from 45% maximum to 35% maximum, and the lowering of benzene in unleaded gasoline from 4% maximum to 2% maximum. Under the Clean Air Act, the DOTC has been tasked as the lead agency in the mitigation of air pollution from mobile sources, reduction of emission from vehicular use, reduction in traffic congestion and traffic flow.

10. The Motor Vehicle User’s Charge (MVUC) To ensure a sustainable implementation of the Clean Air Law, Congress enacted Republic Act No. 8794 providing for the use of a portion (7.5%) of the proceeds of a fund created from the motor vehicle user’s charge to finance the multi-pronged tasks of the DOTC to enforce the emission standards for motor vehicles and to establish a national motor vehicle inspection and maintenance program that will promote efficient and safe operation of all motor vehicles in the country.

11. The Motor Vehicle User’s Charge (MVUC) For this purpose, a Special Vehicle Pollution Control Fund was created from the MVUC. Hence, every year, the government’s annual budget earmarks an amount within the MVUC to enable the DOTC to fulfill its mandate under the Clean Air Law. The Road Board, the body established to administer the MVUC fund, has recently approved the DOTC Multi-Year Program Framework which covers the various activities and proposed yearly funding support for the period 2006-2010.

12. Private Emission Testing Center (PETC) RATIONALE: • Section 21 of Republic Act No. 8749 • Section I, Rule XXXII • Articles VII and VIII of DTI-DOTC Joint Administrative Order No. 1, Series of 2001 • Dept. Order No. 2002-31 “Authorization of Private Emission Testing Centers” • Dept. Order No. 2004-01 “Rules and Regulations Concerning the Issuance of DOTC/LTO Authorization of Motor Vehicle Private Emission Testing Centers (PETCs)

13. Private Emission Testing Center (PETC) OBJECTIVES To ensure substantial reduction of emission from motor vehicles.

14. Private Emission Testing Center (PETC) Brief Description • An interim program and a stop gap measure prior to the full operational of the privatized metro Manila MVIS airshed MVIS lanes. • Commissioned by the government through accreditation by the DTI and authorization by the DOTC/LTO. • Conduct regulatory test independent from the government testing function.

15. Private Emission Testing Center (PETC) Implementation/Operation Problems • Irregularities in PETC operation • Proliferation of authorized (fake) inspection Certificate of Emission Compliance (CEC) • Non-inspection (non-appearance) of vehicles • Fraud inspection

16. Private Emission Testing Center (PETC) PETC Monitoring • Section 35, Article X of DTI-DOTC Joint Administrative Order No. 01, Series of 2001 • Dept. Order No. 2003-04 initiated to constitute an interim committee composition • DENR-DTI-DOTC Joint Administrative Order No. 1, Series of 2001

17. Private Emission Testing Center (PETC) Performance/Accomplishment Report SUMMARY 20042005 Suspended 81 26 Cancelled 8 3 *As of August 2005

18. Private Emission Testing Center (PETC) Proposed Measures • Higher Penalty for violations; • Establish criteria for permanent cancellation; • Moratorium on PETC accreditation (DTI) and authorization (LTO); • Establish PETC’s in areas lacking the required emission testing center. • Re-engineer the PETC Monitoring System by: • beef up personnel with additional funds/recruitment • invite other NGOs to join monitoring team

19. Expanded MVIS ProjectCatch-Up Plan Project Description and Objective • The project envisioned the privatization of government -owned MVIS facilities as a step towards the implementation of a nationwide MVIS to ensure compliance with the standards on motor vehicle roadworthiness, safety and smoke emissions. • To enhance road safety for the riding public as well as pedestrians by reducing accidents arising from vehicular defects and mechanical failures.

20. Expanded MVIS ProjectCatch-Up Plan Project Description and Objective To promote cleaner environment by reducing air pollution coming from vehicular smoke emissions.

21. Expanded MVIS ProjectCatch-Up Plan Legal Basis RA 4136: Land Transportation and Traffic Code provides that DOTC through LTO has the authority to inspect any motor vehicle to determine whether such motor vehicle is registered, safe, roadworthy, or does not emit unnecessary or disagreeable odor, smoke or noise; and upon inspection, issue a certificate of registration to any motor vehicle that complies with its prescribed minimum standards or refuse such registration until said minimum standards are fully complied with.

22. Expanded MVIS ProjectCatch-Up Plan Legal Basis DOTC Administrative Order No. 91-005: This promulgates the pre-requisites for vehicle registration and standards for roadworthiness & safety. RA 8749: Philippine Clean Air Act of 1999 which mandates DOTC/LTO through the MVIS to implement the emission standards for in-use motor vehicles as a requirement for renewal of annual registration.

23. Expanded MVIS ProjectCatch-Up Plan Implementation Strategy The project involves the implementation of MVIS through private sector participation arrangement with government oversight through lease and authorize scheme. Under the said scheme the DOTC/LTO will conduct a bidding for the leasing of the government MVIS facilities on an “as is, where is” basis to qualified private entities. The project commences with the privatization of the government-owned MVIS facilities and thereafter takes off with the provision of additional mobile inspection lanes that shall satisfy the inspection demand.

24. Expanded MVIS ProjectCatch-Up Plan Implementation Strategy Under the “lease and authorize” privatization scheme, the country will be divided into seven initial service areas. These are: • NCR North • NCR South • Regions 1,2,3 & CAR • Regions 4,5 & 8 • Regions 6 & 7 • Regions 9, 10 & Caraga • Regions 11,12 & ARMM

25. Expanded MVIS ProjectCatch-Up Plan Implementation Strategy The successful bidder, as lessee, is required to apply for authorization to conduct motor vehicle inspection on behalf of the government under a program to be called the “Private MVIS Authorization program” (PMAP) that will be established through an administrative order to be issued by the DOTC Secretary.

26. Anti-Smoke Belching Program of DOTC/LTO Anti-Smoke Belching Program for those violating the emission standards of diesel-powered motor vehicles, which comprise 65% of total fleet and are suspected of contributing to majority of urban exposure and health impacts. The DOTC Anti-Smoke Belching Unit (ASBU) was created.

27. Vehicle Inspection and Maintenance Program Draft a new guideline for the vehicle inspection and maintenance program of public utility buses instead of phasing our 15-year old buses. A Technical Working Group (TWG) was created comprising DOTC, LTO, Bus/AUV Operators, Body Builders, DTI and other concerned agencies. As initial step of the program, the TWG used LTO Administrative Order No. 91-005, as a working paper because the said guideline has the most comprehensive motor vehicle inspection and maintenance program.

28. Mandatory Motor Vehicle Emission Inspection Prior To Registration • Section 1/Rule XXXII entitled “Emission Control for in-use Vehicles” of the IRR of the Clean Air Act requires that “All in-use motor vehicles, and vehicles with updated/enhanced engine whose chassis are pre-registered with DOTC/LTO will only be allowed renewal of registration upon proof of compliance of the emission standard. The DOTC/LTO shall conduct the vehicle test utilizing the Motor Vehicle Inspection Station (MVIS) or its duly authorized and accredited inspection Centers (PETCs) consistent with RA 7394 otherwise known as the Consumer Act of the Philippines within sixty (60) days prior to date of registration.

29. Mandatory Motor Vehicle Emission Inspection Prior To Registration • Section 2 of the Implementing Rules and Regulations (IRR) of the Philippine Clean Air Act states that “No rebuilt or second-hand CBU imported into the country or pre-registered vehicles retrofitted with second-hand engines shall be allowed registration or renewal of registration without valid Certificate of Compliance to Emission Standard (CCES) issued by the DOTC.”

30. Encouraging The Use of Mass Transport System and 4-Stroke Engines For Motorcycles • Mass Transit System (MRT, LRT, BRT) • The primary Mass Transit backbone of DOTC shall still be the Light Rail Transit (LRT) System. To decongest Metro Manila, the Department aims to increase the share of rail transit in moving passengers thru MRT/LRT projects by increasing capacity of existing rail systems, extending rail facilities, and building new rail lines. • Bus Rapid Transit (BRT) is a mass transit system using exclusive right of way lanes that mimic the rapidity and performance of metro systems but utilize bus technology rather than rail vehicle technology.

31. Encouraging The Use of Mass Transport System and 4-Stroke Engines For Motorcycles Currently, 75% of total volumes of motorcycles are two-stoke engines whose exhaust and Hydrocarbon (HC) Emissions. The cost of a new 4-stroke engine motorcycle will be about the same for consumers as one with 2-stroke engine. However, the 4-stroke versions are much cleaner. The operating cost may be lower as they are more fuel-efficient. We are lagging well behind our neighbors in enforcing a shift through stringent standards. The share of new 4-stroke motorcycles is 100% in Vietnam, 85% in China, 82% in Thailand and 60% in India, but only about 25% in the Philippines.

32. Improving Public Transport And Traffic Management To Reduce Congestion • Priority Lanes in Traffic Management • Public Transport Route Rationalization Program • Integrated Transport Terminals Program

33. Promoting The Use of CNG Buses and Use of Other Alternative Fuels and Other Pollution Mitigating Measures/Devices DOTC issued Department Order No. 2004-34 for the transport sector to maximize the benefit from the use of the CNG, by directing all Offices and sectors of the Department to implement the following measures that would promote the immediate use of the CNG fuel: • LTFRB is directed to issue franchises exclusive for CNG bus operation.

34. Promoting The Use of CNG Buses and Use of Other Alternative Fuels and Other Pollution Mitigating Measures/Devices • The Land Transportation Office (LTO) is also directed to require Certification of Adherence to Vehicle Design and Safety Standards from the Bureau of Transport Services (BIS)/Department of Trade and Industry (DTI) to protect road users from vehicle crashes resulting from operations of substantial vehicles; and Certificate of Conformity (COC) from DENR as they are registered as brand new vehicles and in deference to the provisions of the Clean Air Act from all assembled buses fashioned from second-hand engines and spare parts.

35. Thank You!