GOVERNMENT REPORT SPARKS CONTROVERSY OVER USE OF LIQUIFIED

UNCLAS SECTION 01 OF 03 GUANGZHOU 000648 SENSITIVE SIPDIS STATE FOR EAP/CM, EB/ESC, OES/ENV, INR/EAP STATE PASS EPA BEIJING FOR FCS, ESTH AND DOE E.O. 12958: N/A TAGS: ENRG SENV PGOV ELTN CH SUBJECT: GOVERNMENT REPORT SPARKS CONTROVERSY OVER USE OF LIQUIFIED PETROLEUM GAS (LPG) IN PUBLIC TRANSPORT SECTOR GUANGZHOU 00000648 001.2 OF 003 ¶1. (SBU) Summary and Comment: If disagreement among government entities regarding high-profile policy initiatives is rare in China, rarer still is it for these disputes to play out in the press. But this is exactly what occurred last month when the Guangzhou Municipal People's Congress (GZPC) released to the media a report questioning the use of liquefied petroleum gas (LPG) in the public transportation sector, a direct challenge to the Guangzhou Transportation Commission's 2003 LPG Advancement Plan. The report triggered a public discussion on the merits of LPG vs. diesel use in city buses and taxis, forcing relevant government agencies to take a position on the issue. Although the Chief of the Transportation Commission challenged the report's findings, subsequent remarks in which he called for improved maintenance of public buses and pledges to explore other clean fuel options indicate the government's position may have been influenced by the public debate triggered by the report. End Summary and Comment. -------------- -------------- REPORT GENERATES CONTROVERSY, FINDINGS PUBLICLY CHALLENGED -------------- -------------- ¶2. (SBU) As a result of incomplete combustion and leakage from modified engines, the hydrocarbon emissions from LPG vehicles that make up the bulk of Guangzhou's bus fleet are 127 times greater than those of diesel buses, according to a report drafted by five GZPC delegates. (Note: Hydrocarbons are linked to ozone pollution and are considered to be highly dangerous pollutants. Some, including benzene, are also carcinogenic. End Note.) The report notes that more than 85% of the 8,000+ buses in Guangzhou run on LPG, most using diesel engines modified for LPG use. Release of the report generated immediate controversy, especially because it directly challenged the municipal Transportation Commission's 2003 initiative to promote LPG as a clean energy option for public transportation. ¶3. (SBU) The Guangzhou Environmental Protection Bureau (EPB) -- which initially opposed LPG use because of concerns over nitrous oxide emissions -- publicly challenged the scientific validity of the delegates' report by pointing out that the test only involved two buses. A few days later the EPB announced the results of its own test of 171 LPG buses, claiming that 99.4% comply with emissions standards. However, a local news report quoted a source alleging that the EPB instructed bus companies to select their best buses for purposes of the test. ¶4. (SBU) The Transportation Commission also disputed the results of the delegates' report. Xian Weixiong, Chief of the Transportation Commission, stated at a press conference that daily tests of LPG bus emissions confirm that these buses "generally comply" with existing standards. In response to these public statements, People's Congress delegates sharpened their criticism of the Transportation Commission, arguing that the entity had no legal authority to interfere in decisions over fuel use. The Deputy Director of the People's Congress, Zhou Qingqiang, stated at a press conference that the Transportation Commission should limit itself to studying fuel options, enhancing safety measures for the public transport sector, and monitoring emissions. -------------- -------------- LPG: CLEANER FUEL SOURCE FOR TAXIS, LESS EFFICIENT IN BUSES -------------- -------------- ¶5. (SBU) In general, LPG is a much cleaner fuel source than diesel, according to an environmental scientist at Sun Yat Sen University (SYSU). To be precise, he pointed to scientific evidence that if properly combusted, the burning of LPG emits significantly lower quantities of particulate matter and carcinogenic hydrocarbons such as benzene as compared to diesel. The scientist also said that a study he conducted along with researchers from the University of California-Irvine demonstrated that concentrations of particulate matter have been reduced in Guangzhou since LPG was introduced into the public transport sector in 2003. Although LPG use generates higher concentrations of propane, propylene, and butane, the SYSU scientist argues that these gases are not as harmful as particulate GUANGZHOU 00000648 002.2 OF 003 matter, since the latter is capable of penetrating respiratory tracts and reaching the lungs. ¶6. (SBU) Why would municipal delegates attack LPG if it is cleaner than diesel? The answer, as explained to us by one of the delegates who worked on the report, is that LPG is not necessarily a cleaner or more efficient fuel source for large vehicles like public buses. The logic behind this claim is that LPG is unable to fully combust in large tanks, resulting in the leakage of gas vapors. The SYSU scientist said studies indicated that LPG-powered buses in Guangzhou had a leakage rate of 30%, which not only results in wasted energy but also generates emissions of unknown quantities of gaseous particles that could have negative health effects. Furthermore, given that Guangzhou is one of the few cities in the world that uses LPG to fuel buses, the GZPC delegate says it is nearly impossible to find suppliers of engines designed exclusively for LPG use. Although bus companies were given RMB 20,000 (about US$ 2,900) per bus under the 2003 LPG subsidy plan to modify diesel engines to burn LPG, the delegate and scientist we spoke to both believe that many bus companies pocketed part of the money and only carried out partial modifications. ¶7. (SBU) Even among those engines that have been fully modified for LPG use, few have been equipped with LPG-specific emissions catalysts, which need to be replaced every three months. The combination of these factors --incomplete combustion of LPG in large tanks, the partial but not full modification of engines for LPG use, and the lack of LPG-specific catalysts -- could potentially translate into higher emissions of harmful pollutants from LPG-powered buses, according to the delegate and the scientist. While LPG may be a cleaner fuel source for smaller vehicles like taxis, the SYSU scientist contends that diesel may actually be the superior choice for large vehicles. ¶8. (SBU) The GZPC delegate also claimed that -- in addition to environmental concerns -- the switch to LPG had raised costs for bus companies. He said many bus companies had gone into debt since the switch because inefficient combustion had increased fuel costs overall. -------------- -------------- MAINTENANCE, TRAFFIC FLOW DIRECTLY AFFECT EMISSION LEVELS -------------- -------------- ¶9. (SBU) Analyzing the report's conclusions from a different perspective, the SYSU scientist argues that the most effective way to bring down vehicle emissions levels, regardless of fuel source, is to ensure that buses and taxis are properly maintained. The problem is that most taxi and bus drivers try to control costs by avoiding regular maintenance on their vehicles, he said. In addition to poor maintenance, the scientist pointed to the frequency of traffic jams as a factor contributing to high emissions levels in Guangzhou. Start-and-stop traffic aggravates gas leakage in LPG-run buses and long periods of idling generate higher particulate emissions from diesel-run buses. -------------- -------------- REPORT "PIONEERS" NEW MECHANISM AT PEOPLE'S CONGRESS -------------- -------------- ¶10. (SBU) The five delegates who worked on the controversial report chose the topic themselves, according the co-drafter we spoke to. He pointed out that the Guangzhou Municipal People's Congress was the first municipal congress in China to permit delegates to explore and report on issues that directly concern them or the neighborhoods they represent. The report on LPG emissions represents a "pioneer effort" under this new mechanism and the delegate expressed satisfaction that it had generated public debate that he believed had influenced the government's position. ¶11. (SBU) Comment: Public statements made by the Chief of the Transportation Commission appear to confirm the delegate's assessment that the report achieved its objective of influencing the government. When asked at a press conference whether LPG should GUANGZHOU 00000648 003.2 OF 003 continue to be the primary fuel source given evidence that inadequately maintained LPG buses generate emissions of harmful pollutants, Transportation Commission Chief Xian Weixiong not only acknowledged that poor maintenance of LPG buses was a serious problem that needed to be addressed but also pledged to explore alternative clean fuel options. End Comment. GOLDBECK