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Review of the Environment Protection (Vehicle Emissions) Regulations

EPA and the Department of Sustainability and Environment (DSE) are currently conducting a review of the Environment Protection (Vehicle Emissions) Regulations ('the Regulations'). The Regulations are due to sunset on 29 January 2013. The objective of the Review is to determine whether the Regulations should be remade and, if so, how they can most effectively regulate motor vehicle emissions, noise and fuel.


Background

The Regulations aim to minimise the impacts of motor vehicle air emissions, noise and fuel quality on Victorians and the Victorian environment. The Regulations do this through:

  • specifying vehicle emission and noise standards, and test procedures for in-service vehicles (that is, vehicles in use)
  • setting fuel standards for vapour pressure and fuel reporting requirements
  • setting exhaust and emission control system construction requirements
  • setting emission and noise control maintenance requirements
  • prohibiting unlawful modifications to emission and noise control systems
  • specifying labelling requirements for petrol pumps and motor vehicles.

Importantly, the Regulations also set out offences and penalties for failing to comply with the Regulations.

Discussion Paper on the Review

The first step of the Review was the release of a discussion paper. The discussion paper provided the opportunity for comment on the direction of the Regulations which aim to minimise the impacts to the environment of motor vehicle air emissions, noise and fuel. The main objectives of the discussion paper were to:

  • outline how the current Regulations regulate motor vehicle emissions, noise and fuel
  • seek input about the operation of the Regulations and how they may be improved
  • seek feedback on the importance of regulating vehicle emissions, noise and fuel
  • highlight potential areas of change within the Regulations and seek feedback on these potential changes (note: the potential changes were included to stimulate discussion and do not represent the Government's position on reforms)
  • seek further options on tackling issues associated with motor vehicle air emissions, noise and fuel.

The discussion paper was released for public comment for 28 days in late 2011. Stakeholders were able to make comments by submitting a written submission, posting a comment on EPA’s on-line forum and/or completing an on-line survey. During this period, industry and public workshops were also held to facilitate submissions to the discussion paper.

EPA received 13 written submissions; 589 visits to the on-line forum with 10 visitors posting comments, and 42 survey responses. Please see attached written submissions to the discussion paper.

Summary of submissions and EPA’s response

The following table identifies some of the key issues raised the in submissions and EPA’s response to these issues.

 

Issue EPA’s response
EPA needs to establish the case for regulation and its benefits. EPA is required under the Subordinate Legislation Act 1994 to prepare a Regulatory Impact Statement (RIS) for any proposed regulations that impose a significant burden on any sector of the public. The RIS must, amongst other things:
  • Establish that there is a problem that justifies government intervention.
  • Through a cost-benefit analysis, systematically quantify, evaluate and compare the costs and benefits of various regulatory and non-regulatory options to address the problem.
  • Demonstrate via a cost-benefit analysis that the net benefits of the preferred option outweigh the net benefits of alternative options.

The adequacy of the RIS, including its compliance with the Subordinate Legislation Act 1994 and Victorian Guide to Regulation, is assessed by the Victorian Competition and Efficiency Commission (VCEC).
Regulations should be outcome-based. EPA supports outcome-based regulation and has recently reformed its licensing system to be more outcome-based. EPA acknowledges the benefits of outcome-based regulation, including:
  • Provides more flexibility in achieving compliance.
  • Better able to keep pace with changes in technology.
  • Promotes innovation.

EPA will ensure that any proposed regulations are outcome-based where feasible and appropriate.
A vehicle owner whose vehicle is identified as smoky through the Public Smoky Vehicles Program should provide evidence of vehicle repairs to EPA. There was general support for this option. EPA will further investigate advancing this option.
Stage 1 vapour recovery (VR1) could be cost effective, although stage 2 vapour recovery (VR2) is not cost effective. A cost-benefit analysis of mandating VR1 and VR2 under various scenarios will be undertaken. EPA recognises that industry is a source of valuable data regarding VR1 and VR2, especially given NSW’s VR2 requirements.
There must be a reasonable timeframe for any new regulatory requirements. EPA will work with stakeholders to ensure sufficient lead time is provided for compliance with any new regulations.
There should be a general exemption from vapour pressure requirements for ethanol/petrol blends. Exemptions from the Regulations’ vapour pressure requirements are undertaken on a case by case basis. However, since 2003 the use of the ethanol/petrol blends has significantly increased. Given that studies have found that there is likely to be an overall health benefit by using ethanol blends (dominated by reductions in particles), EPA will further investigate including a general ethanol/petrol blend vapour pressure waiver in any new regulations. This will provide potential administrative cost savings and provide certainty for business.
EPA should implement a mandatory inspection/maintenance regime. EPA will further investigate whether such a scheme could be practical and cost effective. EPA already has a mandatory testing scheme for diesel vehicles that have a gross vehicle mass over 1.5 tonnes.
New requirements must not adversely impact on competition. EPA is required to undertake a competition assessment in accordance with the Victorian Guide to Regulation to ensure that the benefits of any restrictions to competition, as a whole, outweigh the costs; and the objectives of the proposed regulations can only be achieved by restricting competition. The competition assessment will be included in the RIS.
EPA should impose harsher penalties for non-compliance. It is beyond the scope of the Review to change the penalties for offences set out in the Environment Protection Act 1970. It is within the scope of the Review to propose new offences and penalties in any new regulations. However, the maximum penalty that regulations can prescribe is 50 penalty units. For the 2011-12 financial year the value of a penalty unit is $122.14.

 

Public submissions

Public submissions made to the discussion paper.

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Air quality summary

Monday 21 May 2012: Summary for the 24 hours to 3 PM: FAIR air quality in Mooroolbark and Traralgon, and GOOD to VERY GOOD air quality elsewhere.

Forecast: GOOD to VERY GOOD air quality is expected in Melbourne tomorrow [Tuesday]

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