Better fuel for cleaner air - Discussion paper

Background

Review of fuel standards

The Fuel Quality Standards Act 2000 provides a legislative framework for setting national fuel quality and fuel quality information standards for Australia. Fuel standards are in place for petrol, diesel, biodiesel, autogas and ethanol E85.

Industry and public consultation on amending the fuel standards

The 2015 independent review of the Fuel Quality Standards Act 2000 found that the regulation of fuel quality has led to a significant reduction in emissions. Following on from the review, the Department is considering amendments to the fuel standards. Current fuel standards sunset in 2019 and standards need to be reviewed and remade to ensure the settings contained in these instruments remain up-to-date and effective.

Health and environmental impacts

Without appropriate fuel quality, the emission control technologies within vehicles do not operate as intended. Fuel quality may also influence which engine and emissions control technologies are available to the Australian market.

There are two fuel parameters of particular concern: sulfur and octane in petrol. Sulfur clogs vehicle catalytic converters making them less effective. Higher octane fuels can be used in high compression petrol engines which are more fuel efficient and produce less greenhouse gas emissions.

The discussion paper considers five policy approaches for updating existing fuel standards with a view to improving air quality and health outcomes while reducing greenhouse gas emissions from Australian vehicles.

Text version of infographic

Increasing the efficiency of light vehicles

Concurrently with this process, the Department of Infrastructure and Regional Development, acting on feedback on the February 2016 Vehicle Emissions Discussion Paper, released two draft Regulation Impact Statements to reduce emissions on Australia’s roads:

1. Draft Regulation Impact Statement: Improving the efficiency of new light vehicles
2. Draft Regulation Impact Statement: Vehicle emissions standards for cleaner air

The draft Regulation Impact Statements set out the costs and benefits of the two measures and sought views on design elements and timing for their adoption. This consultation closed on 10 March 2017.

The Government is also considering a number of other measures to encourage the uptake of lower emissions vehicles, such as the type of information provided to consumers when buying a car, and support for emerging technologies.

Text version of infographic

Better quality fuel leads to reduced noxious emissions which then leads to better air quality and health. Which results in:

• Clean air with less exposure to harmful pollutants.
• Reduced deaths, illness and hospital admissions.
• Lower health costs.

Better quality fuel leads to access to better vehicle technology. Resulting in:

• Vehicle fitted with better emissions control systems.
• More fuel efficient engines.

Which then leads to Reduced greenhouse gas emissions from vehicles, which help to meet Australia's 2030 greenhouse gas emissions reduction targets.