National Fuel Quality Standards Regulation Impact Statement 1 ...

sulfur for both petrol and diesel at the same time will be difficult as 6 months will be
required for conversion of plant for 50 ppm petrol after the new diesel plant is
operational.
* The availability of 91 RON and 95 RON fuels at the same time. The FCAI have
expressed concern about the potential for misfuelling of 95 RON vehicles with 91 RON
fuel and resulting maintenance and servicing problems. They want financial incentives to
encourage uptake of 95 RON. The FCAI believe that a competitive disadvantage will
arise for manufacturers of 95 RON vehicles if 91 RON fuel is cheaper because it will
encourage consumers to buy 91 RON vehicles.
* The AIP have requested that a Euro 2 equivalent standard, based on their current
refinery exchange standards, be introduced in 2001 to address petrol substitution issues.
There has also been a general view that operational, as well as environmental, aspects
should be covered by the one instrument. Other stakeholders saw the merit of this view
for 2001.
* The use of pool averaging as compared with flat limits as a way of providing flexibility
for refiners to achieve standards for some parameters, e.g. olefins and aromatics which
affect octane levels.
* Financial incentives to encourage the production of cleaner fuels necessary for the
effective operation of new emissions control technology.
* There has been extensive discussion about the use of additives to enhance octane levels
and their operability and environmental implications. These include MTBE, MMT,
ETBE and biofuels including ethanol.
7. CONCLUSION AND RECOMMENDED OPTION
As demonstrated above, Commonwealth legislation regulating fuel quality standards
would provide the national consistency required to avoid competition problems and trade
barriers that will result from State-specific fuel quality regulations. It is the only option
available that will ensure standards are implemented in time to facilitate the effective and
efficient performance of new emissions control technology necessary to meet tighter
emissions standards implemented through new Australian Design Rules for motor
vehicles. Commonwealth fuel quality legislation capable of mandating fuel specifications
nationally will ensure that fuel of specifications that are essential for the optimal
operation of vehicles will be widely available in Australia.
The Commonwealth Government has clearly stated goals and objectives relating to
improving air quality and reducing toxic and greenhouse emissions from the transport
sector. These goals and objectives will not be met unless cleaner fuels are mandated in
Australia. Commonwealth legislation is the only cost effective option available to ensure
objectives are met in the required timetable.
In implementing fuel standards, the requirements and expectations of the automotive
industry need to be balanced carefully with the production capabilities of the refining
industry and the significant investment that will be required if they are to produce cleaner