Clearing the Air
Read our guide to the Government's plans to clean up our air. Diesel makes up 40% of the fuel consumed in the Auckand region.
Timetable
The Petroleum Products Specifications Regulations 2002 will require oil distributors to provide this new cleaner, safer fuel from August 2004. Most diesel consumers will not notice any change in the operation of their engine. But, when lower sulphur diesel is first introduced in August 2004, there may be a temporary increase in fuel injection pump seal failures for some vehicles (most likely pre-1995 Japanese or Korean light diesel vehicles).
The timetable below shows when sulphur levels will have to be lowered. In practice, diesel with reduced sulphur levels may be supplied several months in advance to ensure all diesel is compliant by the required date.
- August 2004 500ppm
- January 2006 50ppm
- By 2009-2010 10-15ppm
The final shift to sulphur levels of 10-15ppm has not been put into regulation yet but is intended. The timing of this final shift will be reviewed in 2005.
Why Do We Want the Proposed Changes?
- To improve the operation and performance of existing and new vehicles
- To ensure our petrol and diesel is suitable for use in newer-technology vehicles, which produce fewer exhaust emissions and require fuel produced to stringent specifications
- Air quality: Fuel quality has an effect on air quality, which can adversely affect human health. The changes to the regulations will reduce the amount of pollutants such as particulates (small, airborne particles) and benzene that are emitted from vehicle exhausts. The changes, through the reduction of aromatics and the lowering of vapour pressure, will also limit the amount of petrol that evaporates into the air during refuelling and from hot vehicle engines.
- Water quality: Changes to the regulations will better protect water quality. Reducing vehicle emissions will lower the amount of polluting material that goes into waterways, which occurs when particulates are washed by rainfall into streams and rivers. The amended regulations will also limit the effects of accidental fuel spills by restricting substances that can easily contaminate water systems.
How Will the New Regulations Compare with International Standards?
By 2006, when all the changes are fully phased in, the regulations will align to a large extent with those of Australia and Europe. Most of the exceptions relate to petrol and diesel properties that are climate-specific, such as vapour pressure in petrol and cold weather properties in diesel, and which need to be adjusted for New Zealand's conditions.
What Is the Timing of the Changes?
The changes will take effect in three stages:
- 1 September 2002 (after new regulations are drafted and approved)
- 1 January 2004 (1 August 2004 for diesel sulphur and density),
- 1 January 2006 for Stage 2.
This timetable will allow current voluntary good practice to be incorporated into the regulations immediately, while allowing the necessary lead time for specifications that require investment at the Marsden Point Oil Refinery. The timetable also reflects the fact that New Zealand is dependent on imports for about one-third of our petrol and one-tenth of our diesel. We need to know that competitively priced fuel that meets our specifications is available from Australia and Asia. The timing of the changes to the regulations is consistent with the time when overseas refineries will be upgraded to supply higher quality fuel.
Why Can't the Changes Be Done Faster?
The proposed timing of changes takes into account the time that the refinery will need to build additional capacity. It also takes into account when other refineries in the Asia-Pacific region will have upgraded to meet the more stringent specifications that are being implemented in the region.
What Will Be the Impact of the Changes on Vehicles?
The changes will enable the use of new and emerging vehicle technologies from Europe and other countries. They will also ensure the continued good operation of existing vehicles in the New Zealand fleet. Some adjustments may be necessary for older petrol vehicles that use ethanol-blended petrol and older diesel vehicles when sulphur is reduced to 500 parts per million. Information will be available to advise consumers who may be affected by these changes about what precautionary maintenance they should take.
Why Is It Important to Reduce Sulphur in Diesel?
Sulphur is present to a greater or lesser extent in all crude oils. When crude oil is distilled into petrol and diesel fuel blending components, some sulphur finds its way into those components. The amount of sulphur allowed in petrol and diesel is limited because of the undesirable effects it causes during combustion, such as its odour, its corrosiveness, and its tendency to produce acidic by-products. Sulphur in diesel tends to produce emissions in the form of particulates, which are very small airborne particles, some of which are small enough to enter the lungs. Exposure to particulates can aggravate respiratory and cardiovascular diseases and can increase mortality.
The proposal to limit sulphur in diesel to 500 parts per million average in 2004 will improve air quality by directly reducing particulate emissions. Limiting sulphur in diesel to 50 parts per million by 2006 will enable New Zealanders to use the newer, cleaner vehicles that are available overseas.
It is possible that lowering sulphur levels to 500 parts per million will bring forward the need for maintenance on engine seals, particularly in older, Japanese-imported light-duty vehicles. The government will coordinate a public information campaign in advance of the introduction of 500 ppm sulphur diesel to inform consumers about this possibility and any precautionary maintenance they should take.
Can We Lower Diesel Sulphur Levels Earlier?
The government intends to lower diesel sulphur levels in line with international best practice. Many countries are implementing a maximum specification of 50 ppm sulphur. The Marsden Point Oil Refinery, which produces about 90% of New Zealand's diesel, needs to make a major investment of millions of dollars in new plant to produce diesel with sulphur levels down to this level. This plant will be operational in about three years, so New Zealand will be able to obtain diesel with 50 ppm maximum sulphur content from 2006. Australia, which is also implementing a 50 ppm standard in 2006, gave Australian refineries a much longer lead time to lower the diesel sulphur levels.
In the interim, there are some adjustments that NZRC can make to its refinery processes to produce diesel with 500 ppm average sulphur content, but these adjustments are difficult to achieve with the current plant. The government is asking the refinery to take these steps from August 2004, recognising that to request such action earlier could threaten the long term viability of the refinery and New Zealand's access to diesel supplies.
In the longer term, New Zealand plans to implement a "zero sulphur" diesel specification of 10 to 15 ppm, in line with international trends. The government will review the diesel sulphur issue by mid-2005, with the intent of setting a timetable for the "zero sulphur" specification of no later than 2009/2010.
What Steps Are Being Taken to Prevent the Recurrence of the Diesel Filter Blocking Problem?
Filterability is a measure of how well fuel flows through an engine filter. The amended regulations will include a performance-based standard of filterability that states that diesel must be of acceptable filterability so that it is fit for common purpose. This type of standard is common in consumer protection legislation. A laboratory test will be used for monitoring purposes. The oil supply companies are researching other test methods, and the issue will be reviewed by 2006.
Why Is the Use of Ethanol Being Allowed?
Ethanol is a renewable fuel that is used as a means of extending petrol as well as increasing petrol octane. The new regulations will allow blending of up to 10% ethanol in petrol, in line with international practice. Older cars may need mechanical adjustment to operate optimally on ethanol blends. To ensure consumers are aware about petrol containing ethanol, under the changed regulations, dispensers for ethanol-blended petrol will have to be clearly labelled as containing ethanol and the sale of ethanol-blended petrol will have to be accompanied by consumer information regarding its use in older vehicles.