2008 ASOSAI Seminar on Environmental Audit Hong Kong Special Administrative Region, China

1. 2008 ASOSAI Seminar • on Environmental Audit • Hong Kong Special Administrative Region, China • Theme 1: Audit on climate change • and air pollution prevention Audit Commission, Hong Kong

7. Hong Kong Special Administrative Region, China Area: 1,104 square kilometres Population: 7 million, over 90% Chinese July 1997: Reunification Official languages: Chinese & English

8. Audit Commission • Set up under Basic Law • 180 staff • Conducts financial audits & value for money audits • 82 accounts certified • 20 value-for-money audit reports • Reports submitted to Public Accounts Committee

9. Environmental audits • Environmental Protection Department: annual budget of US$430 million • Air: standards - respiratory suspended particulates (RSPs), nitrogen oxides, etc • Water: standards - ammonia, inorganic nitrogen & E. coli mainly through sewage treatment plants • Land: solid waste management • Energy conservation: adopting lower tariff schemes • Methodology: Targets setting, attainment of targets, reasons for failure, reporting of achievements

10. Audit of diesel vehicle emission controls (Mar 2005) Part 1: Background Part 2: Diesel vehicle inspection & maintenance programme Part 3: Smoky vehicle control programme Part 4: Use of liquefied petroleum gas

11. Part 1: Background • 630,000 vehicles • Public transport: 11 million passenger journeys per day (mostly by Mass Transit Railway system) • Air pollutants at roadside level aggravates respiratory illnesses • 90% of pollutants emitted by diesel vehicles • 1987: 14 air quality objectives (AQOs) established in Hong Kong

12. Average RSPs & nitrogen oxides exceeded safety levels (1999- 2004) AQO limit for nitrogen dioxide = 80 AQO limit for RSPs = 55 RSPs Nitrogen dioxide

13. Part 2: Diesel vehicle inspection & maintenance programme • Transport Department (TD) smoke test procedures • Free acceleration smoke test procedures: accelerator pedal pressed, engine accelerated from low idle speed to maximum engine speed • Smokemeter to obtain emission level

14. A smokemeter

15. Test procedures required by US Environmental Protection Agency not adopted by TD • Check that devices which may alter normal acceleration are deactivated • Check that engine within normal operating conditions • Positioning of sampling probe of smokemeter specified • Engine speed monitored using a tachometer • Smoke opacity readings adjusted with air test conditions

16. Audit recommendation • TD should update smoke tests procedures with reference to standards of advanced countries

17. Improper procedures • Drivers involved in actuating engine throttle • Drivers involved in setting up smoke test equipment (sampling probe) • Improper positioning affected test results • TD should conduct periodic verification inspections & prohibit drivers from participating in setting up smoke test equipment

18. Dynamometer test Emissions assessed under simulated driving conditions

19. Low utilisation of dynamometer • Vehicles selected for dynamometer smoke test dropped from 9.4% in 2002 to 0.4% in 2004 • Utilisation dropped from 55% in 2002 to 2.4% in 2004 • TD planned to install another dynamometer • TD should require more vehicles to undergo dynamometer smoke test

20. Smoke test standard • TD adopted 60 Hartridge Smoke Units (HSUs) as smoke opacity standard • Too lenient & not effective in screening vehicles with improper maintenance • TD should tighten smoke opacity standard

21. Part 3: Smoky vehicle control programme • Environmental Protection Department (EPD) inspectors should conduct monitoring inspections of testing centres on a quarterly basis • 11 centres inspected three times in 2004 • smoke test procedures not observed in 25 (76%) of 33 inspections as no vehicle presented for smoke test • EPD should ensure quarterly inspections & re-inspect centres with no procedures observed

22. Recruitment of spotters • Dec 2004: 4,718 spotters • 90% did not make a report to EPD • EPD should take publicity action

23. Part 4: Use of liquefied petroleum gas • Dec 2004: 20,000 LPG vehicles compared with 129,000 diesel vehicles • Spare capacity of LPG storage terminals to support more LPG vehicles • Providing an LPG storage terminal on Hong Kong Island could reduce risks (e.g. risk to population near existing terminals & risk of running out of supply on Hong Kong Island)

24. Audit recommendations • Environmental Bureau should • examine feasibility of building a new LPG storage terminal on Hong Kong Island • consider extending use of LPG to other diesel vehicles

25. Website: www.aud.gov.hk Thank you