National Fuel Quality Standards Regulation Impact Statement 1 ...

enhance the quality of conventional fuels, they are clearly associated with Option 5 of
this statement, which is based on a wider use of alternative fuels.
The Downstream Petroleum Products Action Agenda was released in November 1999.
The Agenda identifies the Government’s strong preference for the development of
nationally consistent fuel specifications, noting that there are "clear competition benefits
from having a nationally consistent approach to fuel standards". It also advises that the
Government will ensure that fuel specifications apply and are enforced equally to imports
and domestically produced fuels.
4 ANALYSIS OF OPTIONS
This section outlines the seven potential options for reducing vehicle emissions, and
improving the quality of petrol and diesel fuel in Australia;
Option 1 - Business as Usual
Option 2 - Industry Agreements Option 3 - State Regulation
Option 4 - National Environment Protection Measure
Option 5 - Wider use of Alternative Fuels
Option 6 - Limiting Vehicle Travel
Option 7 - Commonwealth Regulation
Each option has been evaluated using the following criteria:
* provision of a nationally consistent approach to fuel quality standards;
* consistency with preceding Government policy decisions on this matter;
* assurance that appropriate fuel is available in line with the timetable for the
implementation of new vehicle emission standards ADRs; and
* no restriction on competition and trade.
4.1 BUSINESS AS USUAL (Option 1)
Fuel quality in Australia is currently largely unregulated. The introduction of unleaded
petrol in 1985 (to support the introduction of new emission control technology needed to
meet the emission standards specified in ADR 37/00) saw the majority of States and
Territories introduce limited regulations addressing petrol composition in terms of lead
content.
Fuel standards have, however, been developed for diesel and petrol by Standards
Australia. They are AS 3570 - Automotive Diesel, and AS 1876 - Petrol. These
‘standards’ have no legislative basis, but are rather industry guidelines whose main
purpose is to specify compositional requirements that are consistent with engine
development and reliable vehicle operation. As such, they cannot be considered to