National Fuel Quality Standards Regulation Impact Statement 1 ...

There are also potential competition problems. These may arise when producers either
decline to be party to such an agreement, or choose, on occasion, to operate outside the
agreement with respect to one or more specific fuel parameters.
The uncertainty inherent in such arrangements has prompted a number of States to
consider State-specific legislation. As noted earlier in relation to Option 1 there are
competition problems associated with this approach.
Summary
Voluntary agreements will not ensure a nationally consistent approach to fuel quality
standards or the availability of appropriate fuel required for compliance with the new
ADRs. As for Option 1, there are potential trade and competition problems associated
with the approach.
STATE AND TERRITORY REGULATION (Option 3)
Almost all the States and Territories currently have some form of fuel quality regulatory
regime. In the majority of cases this is currently limited to the lead content of petrol.
However, the announcement by the Commonwealth of proposed fuel changes under the
Measures for a Better Environment initiative has led to a number of States introducing or
proposing to introduce State-specific fuel quality legislation.
Queensland and Western Australia have already introduced such legislation, and South
Australia has foreshadowed new legislation. Their proposals are outlined below.
4.3.1 Queensland
The Queensland Government gazetted new fuel quality regulations under the
Environment Protection Act in July 2000. The regulations require Queensland oil refiners
to produce fuel with the following specifications:
* sulfur levels in diesel fuel to 500 ppm by from 15 July 2001 and remove lead from
petrol by March 2001;
* from 5 July 2000 maximum levels for MTBE, ETBE and TAME to be 0.5% by
volume;
* from 1 July 2000, the six monthly average benzene content of petrol to not exceed 3.5%
by volume;
* from 15 November 2000, maximum levels for Reid Vapour Pressure (RVP) (ranging
from 78 kpa in 2000 to 69 kpa in 2002) for both fuel producers and wholesale distributors
according to climate requirements.
4.3.2 Western Australia
Fuel quality specifications have been regulated in Western Australia from December
1999, under the Environmental Protection (Diesel and Petrol) Regulations 1999, as part
of Western Australia’s Environment Protection Act 1986. The regulation specifies a