Australian Automobile Association Submission to Environment Australia Fuel Quality Review Proposed Standards for Fuel Parameters (Petrol and Diesel) Revised Commonwealth Position October 2000 01/11/00 1. INTRODUCTION The Australian Automobile Association (AAA) welcomes the opportunity to make a supplementary submission to the Department of the Environment and Heritage, Environment Australia Fuel Quality Review on National Fuel Quality Standards, revised Commonwealth position. The AAA is the Federal representative of the State and Territory motoring clubs, its members being the ; • • • • • • • • NRMA Limited Royal Automobile Club of Victoria (RACV) Ltd The Royal Automobile Club of Queensland Limited. The Royal Automobile Association of South Australia, Inc The Royal Automobile Club of Western Australia, (Incorporated) The Royal Automobile Club of Tasmania Automobile Association of Northern Territory Inc. and Royal Automobile Club of Australia. The AAA represents over 6 million motorists, being the total membership of these clubs and associations. This supplementary submission in response to the revised Commonwealth Revised Position is in addition to the initial consultation and AAA response in June 2000. 2. GENERAL PRINCIPLES The AAA concurs with the principle that fuel standards should be used to manage those fuel qualities/parameters that are known to have the potential to impact adversely on the environment. Other fuel parameters which influence the operability of vehicles are also important to ensure consumer satisfaction and AAA welcomes accommodation of these in the National Fuel Quality Standards Bill 2000. AAA also welcomes the inclusion of LPG into early discussions on other fuel standards, as requested in the original AAA submission, June 2000. Fuel standards that address environmental and/or health issues should align with UN ECE specifications but may vary, if necessary, in order to achieve the appropriate Australian outcome. Timing of fuel standards must take into account best available technology already available to other markets, particularly Europe, to enable early introduction of those technologies into the Australian market. _____________________________________________________________________________ Australian Automobile Association National Fuel Quality Standards – Revised Commonwealth Position Page 2 of 5 01/11/00 3. COMMENTS ON REVISED PROPOSAL 3.1 SULPHUR STANDARDS 3.1.1 Diesel – AAA supports the original EA proposal of 500ppm at 1st January 2002 in line with the emissions ADR for new diesel vehicles. This will also enable the introduction of more advanced diesel emission technologies. 3.1.2 ULP and PULP – The EA revised position of harmonisation with Euro 2 in 2002 (500ppm ULP, 150ppm PULP) is supported. However, some mechanism or wording should be included to enable the earlier introduction of 150ppm ULP on a best endeavours basis for those companies able to achieve it. 3.1.3 LRP – the desirability of reducing sulphur to 150ppm appears sensible in the short term, particularly as some of the fuel suppliers are using PULP with an additive. However, the longer term continuation of the LRP is likely to be based on a separate product and its economic viability may be dependent on ability to use a higher sulphur base (500ppm). Therefore, given the potentially low future volumes of LRP we see no justification for forcing sulphur lower than 500ppm. 3.1.4 Further sulphur reductions – AAA believes that the desirability of moving to even lower sulfur levels depends on the environmental benefits from this further reduction. The level and timing of further sulfur reductions must, however, enable vehicle technology, available in volume in other markets, to transfer to the Australian market at the earliest opportunity. Specific sulphur levels should be cognicent of European levels when those levels are finally decided. 3.2 BENZENE AAA supports the original EA proposal for Benzene levels to be capped at 3% maximum from 1st Jan 2002. Where State or Territory legislation requires a lower Benzene level, then those lower limits must be applied. The Euro 3 limit of 1% should apply from 1 st Jan 2005. 3.3 AROMATICS The revised EA position of 45% pool average and 48% capped for 1st Jan 2002 appears high, given that the original position was 45% max by volume. Western Australian standards require 42% and it is reported that the fuel companies had little problem achieving this requirement (albeit recognising the local refinery capability and cross purchasing of fuel between companies). In addition, MTBE was not used to achieve this level, which itself follows the World trend to remove MTBE as an octane enhancer. 3.4 CLEANERBURN AAA believes that the use of an alternative to meeting the lower sulphur level (500ppm) must only be considered as a second option if the fuel companies can demonstrate that their ability to achieve the lower sulphur level by the proposed date is impossible. If Cleanerburn has to be used then it must be clearly demonstrated from testing to have no detrimental effect on the environment over and above the proposed fuel with 500ppm sulphur. It should be noted that some concerns were raised in Europe by the fuel companies themselves over the environmental benefits and use of this additised fuel so why it is therefore satisfactory for Australia must be questioned and justified. _____________________________________________________________________________ Australian Automobile Association National Fuel Quality Standards – Revised Commonwealth Position Page 3 of 5 01/11/00 3.5 ADDITIVES We would like to express our concern over the change in approach by the Federal Government to the treatment of fuel additives. The revise approach identifies that any additives will be allowed unless they are specifically prohibited by the Minister. This change from the previous approach where the approval of the Minister was required could enable an additive to be used which does not necessarily have a quantifiable environmental benefit.. There are many additives available for which claims are made but it cannot be demonstrated in a rigorous manner that their claims are valid. The change in approach will allow these additives to continue to be sold and possibly even claim government approval. AAA therefore recommends that that any additives must be shown to have a demonstrated benefit. This benefit needs to be proved through validation under a recognised testing procedure. The onus of proof should remain with the company that wishes to use the additive. This will not be a problem for any of the reputable additives used by the major oil companies or their suppliers as many of these additives are used abroad and will have tests results available. A desktop verification by the Agency could then suffice. Existing additives could be given an amnesty period of 12 months to enable the Agency time to verify existing additives in the market. 4. ADDITIONAL COMMENTS 4.1 OPERABILITY STANDARDS AAA retains the belief that, over and above the need for Environmental fuel qualities, there remains the need for Operability Standards to ensure correct driveability of vehicles. Operating parameters should therefore be included with environmental parameters in the overall fuel specification as one instrument and defined under the arbitration of the Fuel Standards Consultative Committee, which has yet to be formed. In advance of this, AAA is working with Australian Institute of Petroleum (AIP) and Federal Chamber of Automotive Industries (FCAI) to enable the early introduction of Operability Standards on a voluntary basis by 1st Jan 2001. It is recommended that these standards form the basis of any further legislated requirements in due course. 4.2 TEST METHODS The Commonwealth position makes no reference to specific test methods which should be used to quantify each of the parameters proposed. AAA believes that it is important to clearly qualify those test methods to be used in line with those specified for the Euro standards. The specific test methods will be identified within the draft Operability Standards. 4.3 AFTERMARKET ADDITIVES AND DEVICES Whilst recognising that the National Standards apply to the specification of sold fuel, they do not apply to any post-sale additives or devices which may claim to offer fuel economy savings, valve seat protection for leaded engines to run on unleaded, lower emissions etc. _____________________________________________________________________________ Australian Automobile Association National Fuel Quality Standards – Revised Commonwealth Position Page 4 of 5 01/11/00 This is an area of great concern for the motoring clubs as many products continue to be sold, often at a high price, which are of little real value. In some cases the additives may have a negative environmental effect on the vehicles emissions, thus negating any benefits from using an improved fuel (e.g. using a Euro 3 level unleaded fuel in an engine requiring leaded The AAA would welcome comment from Environment Australia on any mechanism which can be put in place, such as an additives/devices register, which only references or allows use of such product if their claims have been substantiated. We recognise that this also falls under the area of Consumer Affairs or Trading Practices, however they have been unable to achieve any real success against sellers of such products as it is a long winded process to get evidence of product benefits and effect. Nipping these products in the bud, by putting the onus on the supplier to prove the benefit before gaining Government endorsement, would allow better control over spurious claims and sales. _____________________________________________________________________________ Australian Automobile Association National Fuel Quality Standards – Revised Commonwealth Position Page 5 of 5