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National Fuel Quality Standards Regulation Impact Statement 1 ...

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The Commonwealth proposal for fuel standards sets out a timeframe including the<br />

following key dates:<br />

* for diesel<br />

- harmonisation with Euro 2/3 diesel fuel specifications by 1 January 2002 ; and<br />

- harmonisation with Euro 4 diesel fuel specifications before 1 January 2006.<br />

* for petrol<br />

- harmonisation with Euro 2 petrol specifications (Euro 3 for sulfur content) by 1 January<br />

2002;<br />

- harmonisation with Euro 3 petrol specifications by 1 January 2005 (Euro 4 for sulfur<br />

content); and<br />

- harmonisation with Euro 4 petrol specifications by 1 January 2008/2010.<br />

These dates are based on the timeframe for the introduction of new United Nations<br />

Economic Commission for Europe ("Euro") vehicle emissions standards as specified in<br />

the new ADRs gazetted in 1999. They are intended to ensure that the required fuel is<br />

available for the introduction of the ADRs and that sufficient lead-time is available to<br />

refiners to make the necessary investment to produce the fuels.<br />

Summary<br />

The introduction of Commonwealth legislation would provide the national consistency<br />

necessary for the introduction of fuel quality standards to avoid competition problems<br />

and ensure that fuel of the appropriate quality is widely available in Australia in line with<br />

the timetable for the introduction of the new emissions control technology. The<br />

introduction of the legislation is also in line with preceding Government policy decisions<br />

on fuel quality.<br />

4.8 COMPARATIVE ASSESSMENT<br />

Commonwealth legislation is the only option which satisfies all of the specified<br />

assessment criteria, that is, it<br />

1. provides a nationally consistent approach to fuel quality standards;<br />

2. is consistent with preceding Government policy ;<br />

3. can ensure that appropriate fuel is available in line with the timetable for the<br />

implementation of new ADRs; and<br />

4. does not restrict competition and trade.<br />

Appendix 2 summarises the effectiveness of each option against the selection criteria.<br />

Options 6 and 7 on wider use of alternative fuels and limiting vehicle travel have not

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