Portfolio Budget Statements 2004-2005

Australians consistently rank air pollution as one of the highest environmental issues of concern. The Australian Government has taken decisive action to ensure that the quality of air in our urban areas is improved and protected, and that Australia continues to contribute to the international effort to restore the ozone layer. A clean and protected atmosphere will contribute to an overall improvement in the health and well being of the community.

Air quality issues are being addressed though a comprehensive national framework of standards and package of programmes, all underpinned by scientific research.

The National Environment Protection Measures (NEPMs) for Ambient Air Quality, Air Toxics and Diesel Vehicle Emissions establish nationally consistent standards for air quality and diesel vehicle emissions. These standards are helping to ensure that air quality in Australian cities remains protected.

The Australian Government has also introduced the Fuel Quality Standards Act 2000 to reduce emissions from Australia's motor vehicle fleet, the most significant contributor to urban air pollution in Australia. These standards, when combined with tighter new vehicle emission standards, are the single biggest measures in Australia's history to improve air quality. These reductions will provide significant health benefits to the community, delivering an estimated $3.4 billion in avoided health costs over the period to 2020.

The Government also implements a number of programmes that are reducing other major sources of air pollution in the urban environment, including actions to reduce particles from diesel vehicles and (in smoke from) wood heaters, and to encourage sustainable transport actions. It also supports national research priorities to gain a better understanding of pollution sources, air pollution levels and trends, and the health impact of air pollution in Australia.

To ensure the recovery of the world's ozone layer, Australia continues to stay ahead of its international obligations in phasing out and managing ozone depleting substances. Over the past 8 years, Australia has destroyed more ozone depleting substances than any other country in the world. Australia has also assisted a number of countries in the region including India and Pacific Island nations, in developing their ozone protection programmes.

In 2003, the Australian Government extended its ability to protect the ozone layer through the amended Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. This legislation allows for the management of ozone depleting substances and synthetic greenhouse gases that are used to replace them, and establishes a consistent national system of end use regulations for Montreal Protocol industries, such as refrigeration and air conditioning. This action ensures the protection of the ozone layer and will cut Australia's greenhouse gas emissions by the equivalent of nearly 6 million tonnes of carbon dioxide per year.

STRATEGIC PRIORITIES

The Australian Government's medium term strategic priorities for Output 1.1 are to:

The National Environment Protection Measures (NEPMs) for Ambient Air Quality and Air Toxics provide a national framework for the management and protection of air quality across Australia, setting benchmarks against which our air quality can be compared.

The Australian Government will maintain its support for these Measures, and is committed to the ongoing standards development and review processes. This includes support for the current review of the Ambient Air Quality NEPM sulphur dioxide and ozone standards, the scoping of standards for a second tier of air toxics pollutants, and undertaking preparatory studies, such as the Children's Health Study, to underpin the full review of the Ambient Air Quality NEPM scheduled for 2005.

The Department also works in partnership with state and territory governments to implement a number of projects to reduce air pollution. Partnership projects include a common approach to monitoring air quality; research on air pollution and the impacts it has on health; and community education on air quality issues, primarily wood smoke.

Emissions from the motor vehicle fleet make the biggest contribution to urban air pollution in Australia. Over the next ten years, the Fuel Quality Standards Act 2000 will lead to significant reductions in noxious air pollutants such as benzene, oxides of nitrogen, hydrocarbons and particles. The first suite of standards, for petrol and diesel, took effect in 2002 and become progressively more stringent through to 2006. Standards for other transport fuels continue to be developed, with standards for Liquefied Petroleum Gas (LPG) and biodiesel already in place, and work under way on standards for natural gas and ethanol.

To ensure that Australia continues to control air pollution from the motor vehicle fleet, as the number of motor vehicles on our roads and the distance travelled by these vehicles increases, the Department is reviewing fuel quality requirements beyond 2006. This process is being undertaken jointly with the Department of Transport and Regional Services, and state and territory transport and environment agencies. The Government's goal is to ensure that Australia's fuel quality standards keep pace with developments in international standards and importantly, support the introduction of new, lower emission motor vehicle technologies into Australia.

The Australian Government also supports other measures to reduce hazardous emissions from the in service vehicle fleet. One such measure is the Diesel NEPM, which is designed to reduce exhaust emissions from diesel vehicles by facilitating compliance with in service emission standards for diesel vehicles. To ensure that the Government's response to these issues is formulated on the best available information, work has commenced and will continue through 2004-05 on an update to the National In-Service Emissions Study (known as NISE II). This study will gather 'real life' emissions data on Australia's motor vehicle fleet for the purposes of emission modelling and to inform policy development for vehicle emissions management.

Australia has an excellent international reputation for its contribution to the protection of the ozone layer, being a world leader in the management of ozone-depleting substances. Australia has met or exceeded all of its targets to reduce the consumption of ozone depleting substances agreed through the Montreal Protocol on Substances that Deplete the Ozone Layer.

In November 2003, the Government extended its ability to protect the atmosphere by amending the Ozone Protection Act 1989 to become the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The amended legislation implements all of the Government's international obligations under the Vienna Convention and the Montreal Protocol on Substances that Deplete the Ozone Layer, and the more recent Beijing Amendment to the Montreal Protocol.

The amended Act establishes a national approach to the control of ozone-depleting substances and their synthetic greenhouse gas replacements. The Government is now developing uniform Australia wide regulations to control both the import and the end use of these gases.

EFFECTIVENESS IN DELIVERING THE OUTPUT

The states and territories, who have primary responsibility for managing urban air quality, have a range of air quality management programmes designed to reduce air pollution. The Australian Government works in partnership with the states and territories on national approaches to air quality through such forums as the Environment Protection and Heritage Council.

Air quality is measured by a number of air pollutants, with nitrogen dioxide (NO₂) and particles (as PM₁₀) just two indicators of the quality of our urban air. Graph 1.1.1 shows that the levels of NO₂ have decreased in the 10 years between 1991 and 2001 in all major capital cities, while Graph 1.1.2 shows that levels of PM₁₀ have generally remained constant. These indicators have been used here for the first time, and will be a useful measure of Australia's air quality over time.

Graph 1.1.1 Highest second daily maximum 1-hour NO₂ concentrations in capital cities, 1991-2001

Graph 1.1.2 Sixth highest 24-hour average particle (measured as PM₁₀) concentrations in Australian capital cities and in Launceston (Tas), 1991-2001

Working in tandem, the national fuel quality standards (legislated in 2000) and associated regulated emission controls will have an increasingly positive effect on the trend of future air quality emissions from mobile sources. Graph 1.1.3 shows the extent of emissions reductions from motor vehicles through to 2020, depicting the reductions in hydrocarbons (HC), oxides of nitrogen (NO_x), particles (as PM₁₀), benzene and carbon monoxide (CO).

Graph 1.1.3 Estimated national reduction in emissions of major pollutants under the national fuel quality standards, for the period 2000 to 2020.

Graph 1.1.4 Volume of controlled ozone depleting substances (ODS) imported into Australia compared to Montreal Protocol obligations

Graph 1.1.4 shows that Australia's level of imports of ozone depleting substances has been consistently below its international obligations since 1997.

PERFORMANCE IN DELIVERY OF DEPARTMENTAL OUTPUTS

Programme administration	Quantity	Number of projects/activities approved under each programme.
	Quality	Accurate and timely approval, payment and acquittal of grants in accordance with legislation and guidelines.
	Quality	Accurate and timely payment of monies.
	Quality	Degree to which projects, activities, agreements/plans contribute to the output.
Statutory administration	Quantity	Extent to which statutory timeframes are met under legislation.
	Quantity	Number of permits considered (granted and refused) under legislation.
	Quality	Extent to which stakeholders meet legislative requirements.
Policy advising, ministerial and parliamentary	Quality	Minister is satisfied with the timeliness and quality of briefs provided by the Department.
	Quality	Minister is satisfied with the timeliness and quality of draft ministerial correspondence by the Department.
International	Quantity	Percentage of written pre meeting objectives at international meetings achieved.
	Quality	Extent to which Australia's strategic objectives is achieved through international fora.
Stakeholder awareness	Quantity	Information and education products distributed to stakeholders (measured by website hits, information material distributed, etc).
Research, analysis and evaluation	Quantity	Number of research reports, articles and papers prepared and publicly released.
Total Price Output 1.1		$14.723m

Portfolio budget statements

Part C - Agency Budget Statements (continued)
Department of the Environment and Heritage (continued)

Section 2 - Outcomes and Outputs Information Outcome 1 - Environment (continued)
Performance Information for Departmental Outputs - Output 1.1 Atmosphere

SUB OUTPUT:

EFFECTIVENESS STATEMENT

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