Congress urged to decide on Clean Air Act

The Department of Energy (DOE) is urging Congress to come up with a concrete decision on the proposed deferment of the implementation of the Clean Air Act (CAA).

"I told them (lawmakers) I need to know soon whether it (CAA implementation) would be deferred or not because the oil companies will have to plan," Energy Secretary Vincent S. Perez said.

Perez said he had discussions with House Speaker Jose de Venecia on the matter. "I spoke with the Speaker Thursday. He said he is trying to work out a compromise," he said.

The energy chief did not elaborate on the agreement. "He (Speaker de Venecia) didn’t tell what the compromise agreement will be. But it will definitely be within Congress," he said.

There have been talks that Congress would stop deliberation on the CAA implementation which means that the law will still be carried out despite a clamor for its deferment. "It’s all up to Congress," Perez said.

Legislators led by Senate President Franklin Drilon and De Venecia proposed to pass a joint resolution to defer the deadline for oil companies to meet the required fuel specifications for gas products.

In a DOE simulation, the price of diesel may go up by at least 61 centavos per liter while gasoline products will increase by P2 per liter. Power rates, on the other hand, are also expected to increase by 50 to 90 centavos per kilowatt hour. These simulations are based on anticipated investment costs to retrofit power plants and refineries and costs to meet the monitoring and reportorial requirements.

An oil company is expected to spend about $600 million to upgrade its refineries to be able to meet CAA specifications. If it does not upgrade its refinery facilities, it will have to import the specialized oil products. Whatever scheme an oil company adopts the cost will still be passed on to consumers.

The first stage of the CAA took effect in December last year with the total phaseout of leaded gasoline in the country. The implementing rules and regulations (IRRs) of the CAA took effect on Jan. 1, 2001 but the oil companies are allowed an 18-month grace period or until March 2002 to fully comply with the IRRs.

Next year, unleaded gasoline sold by oil firms should have an aromatic content of a maximum of 35 percent from 45 percent in 2000 and the benzene content should be lowered from four percent in January 2000 to two percent in January 2003.