1. Metro Manila Air Quality Improvement Sector Development Program Outsourcing Sampling Project (OSP) ADB Loan No. 1665-PHI OSP Project Overview Presented to: DENR / ADB / NGO & Development Partners Presented by: Outsource Sampling Project (TRC/TEEM) September 18, 2006

2. 1 OSP Project Scope of Work Primary objectives –Perform 960 facility surveys and provide necessary instruction to modify sources for testing (test ports, platforms, ladders) –Perform minimum of 6,048 individual test runs (the equivalent of 960 sources) for PM, SO2, NOx, CO and metals –Generate representative emission test data in comparison with the Philippine Clean Air Act standards –Produce EPA-quality test reports suitable for EMB regulatory follow-up actions (NONC, Technical Conference, CAP)

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17. 16 Project Status (through Aug 31) Status Through August 31, 2006 CurrentPercent GoalsAccomplishmentof Target Specific Outputs Number of Stack Surveys9601,592166% Number of Test Runs6,0487,489124% Number of Equiv. Sources Tested9601,189124% Number of Analyses12,50015,790126% Number of Test Reports---424--- Stacks Failing the Standard---388---

18. 17 Project Status (through Aug 31) Status Regional Accomplishments NCRReg 3Reg 4aTotal Number of Stack Surveys6364844721,592 Percent of Total40%30% Number of Test Runs2,6912,2062,5927,489 Percent of Total36%29%35% Number of Stacks Tested308247255810 38%30%31% Number of Stacks Failing16114285388

19. 18 Stack Test Results Of the 795 stacks reported, 388 are above the CAA standard for at least one parameter: –289 stacks are failing for SO2 –161 stacks are failing for PM –83 stacks are failing for CO –26 stacks are failing for NOx –1 stack is failing for lead

20. 19 General Observations The following are some of the typical –Sources firing bunker C fuel oil are exceeding the SO2 and PM standards (boilers, gensets, heaters) –Gensets are exceeding the NOx standard –Solid fuel-fired units are exceeding the CO standard – Only 1 source was exceeding the lead standards –No sources have exceeded the mercury (or other metal) standards

21. 20 Equipment Returned to DENR At the conclusion of the project OSP provides over $230,000 equipment: –7 vehicles (3 Revos and 4 Kia Vans) –Stack testing equipment (meter boxes, sample probes, impingers, etc) –Laboratory equipment (analytical balance, spectrophotometer, support equipment)

22. 21 OSP Supplemental Items Although not required by our contract, the OSP has provided the following support (at the request of EMB): Extensive regulatory and policy guidance and support (CEMS, accreditation, methodology questions, emission averaging, mass emission rates, correction factors, etc) Established test port and platform standards with industry Created culture of safety in stack testing Training (test procedures, laboratory procedures, test report review, regulatory follow-up, PCO workshops) Survey and testing of large sources outside the Airshed Supplemental Items

23. 22 Primary Goal “Improve air quality over the medium term” –Of the 795 stacks that have been reported, 388 (49%) are failing (without DENR applying the appropriate dilution correction factors). This leads to a NONC and compliance plan. –For sources that pass, the report generally provides the necessary data to make that compliance sustainable –The vast source data should now be used to re-evaluate, and where necessary, tighten the emission standards