Leaded Gasoline Phase-out in BiH Current Status in Countries in the Region Sarajevo, 6 th November 2006 Ruslan Zhechkov, REC This project is financed by UNEP

Background Project funded by the UNEP BiH roundtable ollow up to a regional project Components: -country research; -regional conference and workshop; -identification of follow up measures and needs on a country and regional level Building upon SILAQ – Sofia Initiative on Local Air Quality – launched in 1995 at Environment for Europe Conference Covered countries – Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Turkey, Albania, Bulgaria, Romania, Serbia and Montenegro, Bosnia and Herzegovina, Croatia, Macedonia

Basic data CountryTotal consumption of crude oil (in barrels) Energy consumption by transport (tones of oil equivalent) Albania2,735,500N/A Bulgaria44,134,92402,281,000 BiH7,342,974N/A Croatia32,000,0001,790,000 Macedonia8,938,260 Romania82,448,4003,541,000 (2000) SCG24,255,0001,588,000

Legislation: Air Quality and Fuel Quality Air Quality: no transposition yet except Bulgaria and Romania – full transposition of EU Air Quality Framework Directive 96/62/EC and Daughter Directives; Emissions into Air: - 94/63/EC (VOCs from petrol); 1999/13/EC (VOCs from solvents); 1999/32/EC (Sulfur content in liquid fuels) Fuel Quality: no transposition yet except BG, RO and Croatia which transposed: Council regulation 2964/95 on registration of crude oil imports and deliveries; EC Dir. 98/70/EC on quality of petrol and diesel fuels; EC Dir. 2003/17/EC amending 98/70/EC. Fuel standards for BG, RO, HR are harmonised with 98/70/EC. _________________________________________________________ Main Fuel Quality Problems: -insufficient control activities; -few or no independent authorized laboratories; -lack of testing equipment, personnel in labs, financial resources; -database of fuel stations missing in many countries; -illegal practices in the chain between refinery and car tank.

Source: Michael Walsh Why Are Fuels Important? Fuel Constituents Directly Affect Emissions Fuel Constituents Directly Affect Emissions Fuel Changes Can Immediately Impact on Emissions/Air Quality Fuel Changes Can Immediately Impact on Emissions/Air Quality Fuel Composition Can Enable/Disable Pollution Control Technology Fuel Composition Can Enable/Disable Pollution Control Technology ÖL

Source: Michael Walsh Motivation For Improved Fuels Qualities Carbon monoxide (CO) Hydrocarbons (HC) Nitrogen oxides (NO X ) Particulate matter (PM) Sulfur (SO 2 ) Polyaromatic hydrocarbons (PAH) Greenhouse Gases Improved fuel qualities Improved air quality Environmental benefits Reduced emissions Gasoline – Lead/Sulfur Diesel –Sulfur Other Parameters Improved human health Reduced corrosion Improved crop yield Less acidification, eutrophication and forest damage Climate Change

Fuel Quality Standards CountriesStandards AlbaniaIn the phase of the preparation of the new standards according to 98/70/EC. BulgariaEU standards applied. Petrol: SR EN 228:2004; Diesel SR EN 590:2004. Croatia98/70/EC has been transposed as of 05/2006. MacedoniaPartially harmonized with EU Dir. 98/70/EC. Entered into force in 12/2004. Proposal for new standards for unleaded petrol 98+ and EKO diesel. RomaniaEU standards applied. Petrol: SR EN 228:2004; Diesel SR EN 590:2004 SCGFor unleaded gasoline from the quality is according to standard EN 228. TurkeyRegulation TS 228, based on EN 228 of 98/70/EC completely ban the use of leaded gasoline in 2006.

Lead content in petrol – current status. CountriesStatus AlbaniaBan in % of cars - diesel. Problem with PM. 1 refinery (20% market). Other – imported. BulgariaLeaded petrol banned in 01/2004. Privatisation Neftochim by Lukoil. Fuel requirements included in the contract. 1 refinery – 100% market. BiHBan planned for refinery still to be privatized (6%). Import – Croatia (64%), Hungary (18%) and Serbia (11%) CroatiaLead banned since 1/ refineries. Macedonia12/2004 decrease of lead content (leaded petrol) from 0.6 g/l to 0.15 g/l and from 0.02 g/l to g/l in unleaded. Ban planned for Deadline will not be kept. Legislation not ready. Refinery needs more time. RomaniaLead banned since 12/ refineries. MTBE used and other oxygenates. SCG 60% leaded fuel on the market. 2 refineries in process of privatization. No date for lead phase-out. Use of MMT. TurkeyLead banned in 1/2006. Problem with sulphur. 350ppm diesel – 75%. MMT and potassium used. CEEBanned between 1995 (Slovakia and Slovenia) and 2003 (Poland). Fuel quality compliant with EU legislation.

Sulphur and lead content in petrol and diesel – national specifications CountryNat. specif. (max) (mg/kg) – S in petrol Nat. specif. (max) (mg/kg) – S in diesel Nat. specif. (max) (g/l) – Pb in petrol Albania Bulgaria150 (50 after 2007) 350 (50 after 1/1/2007) BiH Croatia Macedonia Romania150 (50 after 2007) 350 (50 after 2007) SCG2,00010, Direction of quality improvement in EU: - gasoline: 150→50 - diesel 350→50 Leading oil companies <10 (compulsory after 2009)

Croatia Regulation on petrol fuel quality adopted in May - transposition of 98/70/EC and amendments relating to the quality of petrol and diesel fuels, and 1999/32/EC and amendments relating to a reduction in the sulphur content in fuels. The national specification on content of Pb and S in fuel - same as those in EU. Only lead-free fuel is marketing in Croatia from 01. January Limit value of S content in fuels: - petrol up to 50 mg/kg of fuel - diesel up to 50 mg/kg of fuel - gas oils and marine gas oils up to 0,2 % m/m - marine diesel oils up to 1,5 % m/m - heavy fuel oils up to 1,0 % m/m The investment process in refineries started and it will be finished till the end of year. KTI is building Claus unit in Refinery Sisak and first stage of modern. of Refinery Rijeka is in preparation. Plans are to invest 340 mil. euro in Sisak and 404 mil euro in Rijeka. Under preparation: - Regulation on the technical standards for environmental protection of VOC emissions resulting from the storage and distribution of petrol” harmonized with Directive 94/63/EC for adoption. (final phase) - Regulation dealing with emissions in the air from large stationary sources, harmonized with LCP-Directive 2001/80/EC.

Light-duty Vehicles Legislation Directive 98/69/EC, since 1 January 2000 Source: P. Good, Commission DG Industry, Hart’s World Fuels & Refining Conference, Brussels 2005

Vehicle emissions Diesel passenger cars 10%- 30%. BiH (>50%), SCG (>30%) LDV, HDV, buses – mostly diesel No info on converters - BiH (57%), SCG (30%) Old fleet – mostly years, few new ones – BG (36%, >20 years) Own production – Romania and SCG Limitations on import (age cap BiH, MK, SCG) Domestic vehicle production – Romania, SCG CountryNumber of vehicles Albania 274,652 Bulgaria 3,165,279 BiH 731,000 Croatia 1,461,000 Macedonia 444,000 Romania 3,318,208 SCG 1,801,000 Turkey 7,806,000

Proximity To Truck Traffic Linked To Lung Function in Children Source: Brunekreef, Epidemiology; 8:

Promotion of environment friendly vehicles CountriesMeasures BulgariaDifferentiation of customs fees acc. to age. BiHAge limit for import. CroatiaEURO III engine installed for new cars and EURO II - for used cars; Fee structure favours newer cars; Cars with converters pay ½ registration fee. MacedoniaAge limit for import. RomaniaOnly EURO III motor vehicles. Scrappage programme. SCGAge limit for import. TurkeyState subsidy for banning cars older than 30 years.

Joint Conclusion from Conference (1) Lead phase-out should involve: lead removal from gasoline as soon as feasible; instituting national regulations to ban leaded gasoline, with official dates; improved monitoring/control of fuel quality; information campaigns for better understanding of lead phase-out (public, fuel stations, possible blood level lead monitoring) and applicability of unleaded gasoline; launching of vehicle renewal programmes (e.g. scrappage); improved vehicle import regulations (to include age limits and catalytic converters); and improved interaction on all levels of governance. Reducing sulphur should involve: public awareness on the benefits of cleaner fuels (including NGOs) and awareness for decision makers highlighting the importance of fuel taxes to the economy (check with government inspectors and policy); ISO accredited labs that are independent from producers (country specific); for poor quality refineries, designation of fuel for non-transport use, for industrial boilers, and marine, domestic heating (temporary measure); availability of mobile testing labs for testing fuel quality (at least for sulphur and colour marking); modernising the equipment of state-owned labs; training personnel on fuel quality control; higher tax for dirty fuels compared to cleaner fuels; sliding scale for penalties (starting with lower); and implementation of national plans for step-by- step sulphur reduction.

Joint Conclusion from Conference (2) Promoting cleaner vehicles should involve: public awareness raising; training for policy makers; improving access to information; introduction of fiscal incentives; launching a discussion on how to harmonise the second-hand car market (standardisation); introduction of differentiated environmental taxes; work with other stakeholders and the private sector; and retrofitting for older vehicles. ________________________________________________________________________ The participants concluded that: There is a need for coordinated national and regional action for improvement of vehicle fuel quality and reduction of vehicle emissions. Fuels and vehicle quality and public transport issues need to be integrated in national and local environmental and sustainable development plans. There should be increased participation in the PCFV from CEE and Turkey. All participants from this event are invited to join the PCFV. A regional network of experts and practitioners is established to support the above actions. In close cooperation with the PCFV, the REC will facilitate the network operation.

Other Recommendations Exchange of experiences with other countries; Needs assessment for the development and use of non-lead lubricating additives; Research into the feasibility of using unleaded gasoline in cars with soft exhaust valve seats; Ensuring access to the necessary financial support for refinery modernization; Technological development of refineries; Requirements for lead phase-out in the privatization of refineries; Introduction and enforcement of vehicle emissions and gasoline standards; Modernization of the control system for periodic technical inspection of vehicles; Fitting of cars with catalytic converters and other pollution control devices; Development of the production and distribution systems to improve the supply of unleaded gasoline and lubricating additives; Implementation of policy incentives to increase the market share of unleaded gasoline and speed up the complete phase-out of leaded gasoline.

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