4. Consumer Protection, Environmental, Health and Safety Considerations
This section discusses the key considerations relating to consumer protection, the environment, and health and safety that have been included in the review.
- Section 4.1 describes the existing consumer protection framework in New Zealand.
- Sections 4.2 and 4.3 describe the environmental impacts arising from the use of petrol and diesel, and the controls in place to minimise those impacts. Discharges of contaminants to air from the combustion of petrol and diesel are one of the greatest contributors to air pollution in New Zealand. The use of petrol and diesel also has an impact on water quality in New Zealand, although to a lesser (and less quantified) extent.
- Section 4.4 discusses the direct health impacts (both public and occupational exposure) arising from the use of petrol and diesel in New Zealand.
- Section 4.5 provides an overview of the present hazardous substances legislation and its linkages to the Petroleum Products Specifications Regulations.
4.1 Consumer Protection
The introduction of the Petroleum Sector Reform Act 1988 removed regulatory control of the motor spirits industry. To ensure that consumers would be able to buy petrol and diesel that was "fit for purpose" in the new deregulated market, the Ministry of Energy (Petroleum Products Specifications) Regulations were issued in 1988.
The Regulations sit within a wider consumer protection framework that includes the Fair Trading Act 1986 and the Consumer Guarantees Act 1993 as discussed below. There are also a number of "watch dog" organisations that perform a consumer protection role. Given this more general consumer protection legislation, consideration in the review was given to whether consumer protection should continue to be a feature of the regulations, or whether consumer rights are adequately protected via other mechanisms.
4.1.1 Consumer Protection Legislation
Fair Trading Act 1986
The Fair Trading Act applies to all aspects of the promotion and sale of goods and services, from advertising and pricing to sales techniques and finance agreements. This Act came into force on 1 March 1987. This Act essentially
- Prohibits people in trade from engaging in misleading or deceptive conduct generally (section 9); and
- Prohibits certain types of false or misleading representations about goods or services, including false claims that goods or services are of a particular price, standard, quality, origin or history or that they have particular uses or benefits or that they have any particular endorsement or approval (section 14).
Where this Act is deemed to have been breached, fines can be imposed and suppliers can face both criminal and civil actions. The Act does not require someone to suffer or to be directly affected by the trader's behaviour for action to be taken, as the Act applies to conduct likely to mislead or deceive.
Contravention of this Act can result in fines up to $30,000 for an individual and $100,000 for a company. Frequently both a company and the individuals involved in a breach will be prosecuted by the Commerce Commission. Anyone can apply to the High Court for an injunction to stop the Act being breached and the Commerce Commission also has the right to apply to the High Court for corrective advertising orders.
Consumer Guarantees Act 1993
The Consumer Guarantees Act applies to products of a kind normally bought for personal, domestic or household use and purchased in trade. It:
- Sets minimum guarantees about quality and fitness of goods and standards of service;
- Sets remedies which can be used against sellers and service providers and in some cases, against manufacturers whose goods or service do not meet the guarantees; and
- Prevents sellers and service providers contracting out of the minimum guarantees, except in certain circumstances.
The Disputes Tribunal can hear claims under this Act.
How Do These Acts Protect Consumers of Petrol and Diesel?
Within the current legislative framework:
- Suppliers must not incorrectly label fuels (grade, quality and composition);
- The consumer has a right to request information about the product;
- Mandatory standards could be issued specifying product quality information that must be made available to consumers (this has not been done for petrol or diesel to date); and
- Any disputes about quality would be covered under the dispute provisions of this legislation. Civil proceedings under the Act can take place in the High Court, the District Court or the Disputes Tribunal. Criminal proceedings are taken in the District Court.
The Petroleum Products Specifications Regulations provide buyers of petrol and diesel with an additional layer of protection to ensure that fuel bought is "fit for purpose", as consumers are not in a position to determine the quality of fuel at the point of purchase. Problems with poor quality fuel may not be experienced immediately and different brands of fuel may have been bought over a period of time before a problem is identified, making it difficult to link the consequences back to a specific source or retailer.
In the absence of Regulations, minimum quality would be a more flexible concept determined by consumers and suppliers. The main advantages and disadvantages offered by the Regulations are as follows:
| Positives | Negatives |
|---|
| The definition of "acceptable quality " is clear. | Consumers cannot buy lower quality products that might meet their requirements. |
| The Regulations provide certainty for consumers - petrol and diesel must meet a clear list of minimum quality requirements. | The Regulations may exclude some businesses from the market as they can not meet standards. |
| The Regulations provide a mechanism to monitor fuel quality. | The Regulations allow the supplier to be fined, however consumer recompense must come under other legislation. |
4.1.2 Consumer Agencies
The Ministry of Consumer Affairs is an operating branch of the Ministry of Economic Development. It provides consumer and trader information, education and policy advice to the Government on consumer laws, investigates unsafe products, and ensures that market transactions based on weight and measurement are accurate, fair and consistent with international standards. The Energy Safety Service, which runs the Fuel Quality Monitoring programme (refer Section 4.1.4) is part of the Ministry of Consumer Affairs.
The Commerce Commission is an independent body that is constituted by the Commerce Act 1986. It is charged with enforcing the Commerce Act and the Fair Trading Act 1986, and making quasi-judicial decisions under the Commerce Act and the Electricity Industry Reform Act 1999.
Non-government organisations also play an important role in consumer advocacy and protection.
The Automobile Association has a key role as a representative of the motorist. The organisation examines measures that could have an impact on the motorist to determine if they are fair and appropriate and lobbies government on behalf of vehicle users. It also gives advice to fleet operators, provides policy advice and carries out technical and scientific studies on behalf of its members. The Automobile Association has a specific interest in fuel quality and consistency, price and competition within the market.
The Consumers' Institute is a non-governmental organisation that champions the rights of the consumer. It has a membership of approximately 100,000, but a self imposed responsibility for all consumers. The Institute carries out major car reliability tests every two years or so and has an interest in fuel specifications in respect of any impact on price (value for money), structure of the fuel supply industry, environmental outcomes and quality (especially variability).
4.1.3 Consumer Issues
Fit for Purpose
Fuel processing technology and additives used in petrol and diesel to control fuel quality change with time. Fuel problems in recent years have resulted from changes in fuel properties that the specifications did not adequately control or did not address, for example, the problems encountered with high aromatics in premium unleaded petrol in 1996. The inclusion of a "fit for purpose" statement in the Regulations would ensure that they cover these types of incidents.
Brand Products
Brand products that clearly meet the current specifications but offer additional features have become a recent addition to the petrol and diesel market. High performance European cars coming into New Zealand are creating a demand for higher octane fuels and in the last year, two suppliers have introduced products in response to this demand.
This raises the issue of whether there is a requirement for more extensive consumer protection as more of these products come onto the market (e.g. low sulphur diesel, higher octane fuels). The current specifications set only a minimum fuel quality. Any statements made by retailers over and above these minimum qualities are not tested as part of the fuel monitoring programme (refer to Section 4.1.4 below). Claims made in respect of brand products are however covered by the wider consumer protection legislation.
Variability within the Specifications
Consumer protection advocates in the past have noted that variations in fuel quality have caused problems for some consumers even where that variation has been within the current specifications. Occasionally fuel has been distributed with significant enough variations from the norm to be noticed by consumers and commented upon. Examples include variations in the octane levels and volatility for petrol, and issues in respect of the winter and summer mix for diesel. In all cases quoted it was noted that the fuel did meet the specifications set out in the Regulations.
Consumer Safety
It is noted that since 1989, there has been a marked increase in the use of self-service facilities at retail outlets. Issues of consumer safety are discussed in Section 4.4.
Labelling and Availability of Information
Provisions for labelling are not a requirement of the current Regulations. General controls on labelling are provided in the Fair Trading Act 1986. The Weights and Measures Regulations 1999 also require that all fixed fuel dispensers be labelled with the type of fuel dispensed, but this is only for inspection purposes. From time to time, consumers experience problems with misfuelling (filling the vehicle with the wrong fuel). This can be lead to serious engine damage, as well as potentially being quite hazardous.
The need to provide additional information to consumers in respect of actual octane level, sulphur content (of both diesel and petrol), benzene levels, the use of additives and any other special properties of the fuel is also considered in this review. It is important that consumers are informed about the products they are purchasing and where relevant, that they are actually receiving the "boutique" qualities being advertised.
4.1.4 Fuel Quality Monitoring
Fuel quality monitoring is a key element of consumer protection currently provided under the Regulations. The Regulations set out the minimum requirements for each specified property as well as the test method that will be used to measure that property. They set out the procedures to be used for sampling and for interpreting test results (particularly if there is any disagreement about them). The Regulations also require that any person taking samples or doing testing on behalf of the regulator be accredited by a recognised accreditation agency.
The Fuel Quality Monitoring (FQM) Programme
A sampling and testing programme for fuel quality was initiated in March 1989. A statistically based sampling scheme was designed in 1991, based on factors including the known failure rate and fuel consumption from each regional onshore bulk storage location. Initially it was managed by the Office of the Chief Gas Engineer (OCGE) of the Ministry of Commerce. Since December 1999 it has been undertaken by the Energy Safety Service, a group in the Ministry of Consumer Affairs within the Ministry of Economic Development. The FQM Programme is funded by the Petroleum Fuels Monitoring Levy on all fuel sold. The current rate is 0.025 cents per litre.
The scheme specifies the required number of samples to be taken each month from each distribution region to give a 95% confidence level of detecting a 3% level of non-compliant samples. Each year a sampling plan, based on the sampling scheme, is produced. These plans provide for effective nation-wide coverage taking into account market share, regional use and other factors.
The annual sampling plan typically comprises around 100 service stations, with samples collected of each of the two grades of petrol and one of diesel (where available). The advantage of this system is that it monitors the quality of fuel that consumers receive including any contamination during transport or distribution. However, a drawback is that in the event of any non-compliant samples, the fuel will generally have been sold before the results become available.
Samples are tested against the specifications set out in the Regulations using the defined test procedures. Therefore, while the properties of new fuel products (i.e. brand products such as high octane or low sulphur fuels) may be tested if selected by the routine sampling plan, such testing would only be to confirm that they meet the minimum standards set out in the specifications for the relevant grade fuel. This monitoring would not test the retailers' specific claims in respect of that product.
What Happens to Test Results?
A report summarising the results of the programme over the period 1992-1999 was published in July 2000 (MED, 2000). This period includes the introduction of premium unleaded petrol in 1996. A supplementary report for 1999-2000 has recently been published (MED, 2001b). The number of non-compliant samples has been very low and almost all non-compliance has been of a minor nature (within testing error). To date there have been no prosecutions. The results indicate that, for the most part, New Zealanders are provided with fuel that meets the specifications
How Effective Is the Monitoring Programme?
The fuel monitoring programme provides a level of protection to the consumer that is not available under other consumer protection legislation. However, concern has been raised by consumer groups that not enough product testing is carried out, that the information is not easily available to consumers, that there are delays in information release and that the form of release is not necessarily consumer friendly. The importance of retaining the FQM programme has been highlighted by consumer groups in particular as there is a perception that the oil companies are importing more and more refined product which could lead to greater variability in product supplied to the consumer.
The oil industry itself tests its batches of petrol and diesel prior to sale to ensure compliance with the specifications. The test methods set down by the Regulations for measuring compliance are in turn are used by the industry to assure itself of compliance.
4.2 Environment - Air Quality
By world standards, air quality in New Zealand is comparatively very good. This is primarily due to our geographical location, the prevailing westerly winds, the coastal location of most of our large cities and the limited amount of heavy industry. However, in some urban areas, levels of air contaminants occasionally, and sometimes frequently, reach concentrations that are high enough to be a major health concern. The aim for New Zealand therefore is to ensure that air quality is maintained where it is currently healthy, and improved in areas that suffer periods of high pollution.
4.2.1 Sources of Air Emissions Arising from the Use of Petrol and Diesel in New Zealand
The majority of discharges to air arising from the use of petrol and diesel in New Zealand are the products of combustion emitted by vehicles in use. However, there are other sources that must be considered. Figure 4.1 provides a schematic illustration of the major sources of air emissions downstream of the refinery.
Figure 4.1 Air Emissions Arising from the Use of Petrol and Diesel in New Zealand
Emissions can be generally grouped as either products of combustion or evaporative emissions. The figure illustrates the following sources:
- Products of combustion.
- Evaporation during distribution (filling/loading operations and evaporation from thermal fluctuations).
- Evaporative losses from vehicles.
Evaporative losses can occur from both bulk storage sites and vehicles, however in practice, one mechanism predominates in each case: displacement losses predominate in bulk distribution, where the tank size reduces thermal fluctuations; evaporative losses predominate from vehicles.
Figures 4.2 and 4.3 present data from the Auckland Air Emissions Inventory (ARC, 1997), showing the relative contributions of various sources to air emissions in the region.
Figure 4.2 VOC Emissions from Petrol Usage (Auckland, 1993)
Figure 4.3: Relative Emissions from Mobile, Domestic/Commercial and Major Industrial Sources (Auckland, 1993)
4.2.2 Products of Combustion
As shown in Figure 4.2, products of combustion are the largest source of air emissions from fuels. These are sourced from petrol and diesel engines, and by far the majority of these sources are the vehicle fleet. The mechanics of the combustion engine and the emissions that result are well understood. Appendix C, Appendix D and Appendix E of this document provide an overview of "how engines work", the vehicle fleet and key air contaminants emitted by combustion.
Other sources of combustion products are stationary industrial sources (diesel-fired boilers, stand-by generators, for example) and agriculture (farm machinery); these sources tend to use diesel fuel. There appear to be relatively few consented discharges for diesel combustion processes - the Auckland Regional Council has issued no consents for such processes (pers comm, ARC). Section 3.1 contains information on fuel usage, and it can be seen that the industrial and agriculture sectors use 10% and 6% of total diesel use respectively (Figure 3.5). However, there is no information on the proportions used in stationary plant, vehicles or other mobile machinery.
Serious health effects may occur as a result of exposure to air pollutants emitted as a product of combustion. In general, traffic-related air pollution contributes most to chronic cardiovascular and respiratory diseases, and there is increasing evidence of carcinogenic effects from both petrol and diesel exhaust exposure (WHO, 2000). The adverse health effects of the primary pollutants, such as CO, NOx, particulate matter and benzene (a known carcinogen) in particular are well documented, however, there is little information on the synergies that exist in a complex mixture of associated pollutants. The effects of individual pollutants are described in Appendix E.
4.2.3 Displacement Losses from Distribution (Evaporative Losses)
When any storage vessel (large storage tank or vehicle fuel tank) is filled with petrol or diesel, air displaced from the vessel contains hydrocarbon vapour.
Vapour recovery is not widespread in bulk or retail storage facilities in New Zealand. Standard industry allowances for losses that occur between the bulk storage terminal and the fuel dispensed to vehicles are 0.4% and 0.2% for petrol and diesel respectively. In 1997, the Motor Trade Association (MTA) commissioned a study to review the mechanisms by which losses occur and the measurement methods by which they are identified. The study found that actual losses of petrol vapour in distribution in New Zealand were commensurate with the standard industry allowance of 0.4% (Woodward-Clyde, 1997b). Given the very low volatility of diesel, evaporative losses are likely to be less than 0.2%, however accurate quantification is constrained by the accuracy of the metering equipment (Woodward-Clyde, 1997b).
The Auckland emissions inventory estimated that 800 tonnes/year (1993) of volatile organic compounds (VOCs) may be emitted from (bulk) fuel storage and around 1750 tonnes/year emitted from refuelling operations at service stations (ARC, 1997). These figures equate to around 0.1% and 0.3% of total fuel throughput respectively, and accords well with the MTA data.
On a national basis, around 8,800 tonnes per year of VOCs are emitted through evaporative losses during distribution.
4.2.4 Evaporative Losses from Vehicles
Evaporation from thermal fluctuations are derived from a number of sources, however the most significant is generally considered to be diurnal breathing losses (DBL) which occur as fuel is heated by rising ambient temperatures. Other evaporative losses from vehicles include hot soak losses (loss of vapour after vehicle shutdown caused by residual engine heat) and running losses (Kar, 2000).
Evaporative emissions are in the order of 30% of total VOC emissions from vehicles (Kar, 2000 and ARC, 1997). Light hydrocarbons such as butane and pentane are the main species present in evaporative emissions; benzene typically comprises just over 1%, with toluene and xylene contributing around 3% (Kar, 2000 and ARC, 1997).
The Kar study estimated that up to 16 million litres (12,000 tonnes) of petrol may be lost annually from vehicles through evaporation mechanisms (Kar, 2000). This amounts to around 0.5% of total petrol consumed, based on 2000 data (MED, 2001a). While this study was based on a specific set of circumstances (an "average" Aucklander who drives to work and parks the car (uncovered in summer) for the day before driving home), and a limited range of vehicles were taken as representative of the national fleet, this indicates the relative order of magnitude of this source.
Modern vehicles use a number of strategies to control evaporative emissions, including electronic engine management systems, purge-flow controls, sealed petrol caps and carbon canisters. The latter are a key component. The canister contains activated carbon which absorbs hydrocarbons evaporated from the fuel supply and engine, then "reclaims" them by drawing air through the canister into the engine while the engine is running. Up to 95% of evaporative losses can be captured by the use of carbon canisters, which will significantly reduce total emissions from evaporative losses (Kar, 2000).
4.2.5 Legal and Policy Framework
The legal and policy framework in New Zealand has an important bearing on how air quality is managed.
The Resource Management Act 1991 (RMA) sets out the legal framework for managing the environment in New Zealand. The overall purpose of the RMA is to promote the sustainable management of natural and physical resources. Responsibility for managing local air quality rests with regional councils (and unitary authorities). To assist them in managing the environment, councils must prepare a regional policy statement and can prepare regional plans, such as a regional air quality plan. Regional air quality plans specify rules to permit certain activities, specify those activities that require resource consents and prohibit activities that are known to have serious adverse effects on local air quality.
In summary, discharges arising from the consumption of petrol and diesel are either:
- stationary point sources (e.g. diesel-fired boilers), controlled by setting resource consents, rules in plans, or regulations;
- or the multitude of mobile point sources that are cars, motorbikes, trucks, buses, lawn mowers etc. Implementing controls on all these mobile sources is effected by a range of policy initiatives under the umbrella of the VFECS, with input from a number of government departments, notably MoT, MED and MfE. This Review is one of those policy initiatives.
Air quality guideline values fit into the regional planning process at an early stage and have been used to develop rules in plans, assess the effectiveness of methods and determine whether air quality improvements are required. The 1994 Ambient Air Quality Guidelines (MfE, 1994) provided a list of eight priority contaminants and their guideline values - the concentrations which were considered the minimum requirements for outdoor air quality, to protect human health and the environment. In 1998, MfE began a review of the guidelines, which has culminated in the publication of Proposals for Revised and New Ambient Air Quality Guidelines (MfE#16, 2000). Submissions on the proposals closed in March 2001 and revised proposals will be published by the end of the year.
MfE aims to update and review the air quality guidelines on a five-yearly basis, unless specific pollutants require otherwise. Incorporating revised guidelines into Regional Plans is the responsibility of regional councils, some of whom have adopted alternative, regional, criteria.
Note: Distinction is made between local and global air quality issues. See Section
4.2.8 for a discussion of CO
2 emissions associated with the use of petrol and diesel in New Zealand.
4.2.6 Air Quality Indicators for New Zealand
Five key or priority pollutants that provide a representative picture of air quality have been chosen as indicators for MfE's Environmental Performance Indicators (EPI) Programme: carbon monoxide (CO), nitrogen dioxide (NO2), sulphur dioxide (SO2), ozone (O3) and particulate matter smaller than 10 microns (PM10). The programme will be expanded to include benzene and PM2.5 (particulate matter smaller than 2.5 microns) which are proposed in the new ambient air quality guidelines.
Ambient Air Quality Guidelines are also available for fluoride, hydrogen sulphide and lead, but these are not included in the EPI programme, and are not relevant to the current use of petrol and diesel. (Following the removal of lead additives from petrol in 1996, atmospheric lead levels in New Zealand are now well below guideline criteria, and are still decreasing (MfE#13, 2000)).
The EPI Programme has established a basis for defining "clean" or "degraded" air, by assigning five categories, based on a comparison of measured values with guideline values. This is shown in Figure 4.4. For example, concentrations above 66% of any guideline value fall within the "Alert" category, which provides a warning that the guideline value could be exceeded if upward trends are not curbed. Appendix E contains a discussion of the primary air contaminants, their sources and current ambient air concentrations
Figure 4.4: EPI Programme Air Quality Categories
4.2.7 How Good is New Zealand's Local Air Quality?
In general terms, the air quality monitoring to date confirms New Zealand's air quality is good for most of the time, but it also highlights problems in urban areas in meeting guideline values for CO and NO2, PM10, and, in the future, benzene (MfE#23, 2000). Pollution levels directly attributable to vehicles are generally at their highest at particular locations in high vehicle use traffic corridors. These pressures will only increase with predicted increases in traffic volumes.
- Petrol-fuelled motor transport is the major source of CO in urban airsheds. The highest CO pollution levels encountered are found in traffic corridors, under peak traffic loads. A reduction in emission rates of CO of at least 60% is needed to prevent exceedances of the CO air quality guideline at these locations (MOT, 1997). This is the target of the VFECS Programme.
- Motor vehicles contribute 80-95% of total nitrogen oxide (NOx) emissions. NOx levels in New Zealand are generally good, but can approach "alert" levels in traffic corridors, and given the trends for increasing urban traffic growth, such levels are likely to increase. NOx are a primary pollutant and contribute to the formation of secondary air pollutants, such as ozone and secondary particles. Vehicle emission rates should therefore be managed downwards.
- Air quality in relation to SO2 levels is "good". However, like NOx and VOCs, the role of SO2 in secondary particle formation is important, and managing reductions in the emission rates of these pollutants will effect improvements in local PM values.
- Most air quality monitoring is for particles less than 10 microns in diameter (PM10) as these are the particles that can enter the lungs, although increasingly attention is turning to particles less than 2.5 microns in diameter (PM2.5). Breaches of the guideline value for PM10 have occurred, especially in urban areas, where home-heating fires and adverse meteorological conditions combine. A new ambient air quality guideline for PM2.5 is proposed, which is to be reviewed as newer research on the relationship between PM2.5 and adverse health effects becomes available.
While vehicles contribute no more than 20% of the primary particle loading (MOT, 1998), secondary particle formation through the formation of SO2, NOx and VOC precursors is an important contributor from vehicles. Managing reductions in the emission rates of these pollutants will effect improvements in local PM values. - The single largest source of VOCs in New Zealand's urban environment is the motor vehicle, and of the hazardous air pollutants, benzene is likely to be the primary pollutant requiring control (MfE#14, 2000). Some urban areas will not meet the proposed 2010 ambient air guideline criterion.
A Ministry of Health study has estimated that annual average benzene exposures for non-smokers in New Zealand cities and suburbs are in the range 1-40 µg/m³ (Stevenson and Narsey, 1999). For a typical exposure scenario, for a person living and working in a typical suburb in a major city spending 5-10 hours driving in city and suburban traffic, annual average exposures are in the range 2.5-10 µg/m³. The top end of the exposure range (10-40 µg/m³) is experienced by people living in houses significantly affected by evaporative emissions from petrol-fuelled cars in internal garages, and/or those spending a high proportion of their time in vehicles in city and suburban areas e.g. couriers and taxi drivers.
The proposed ambient air quality guideline for benzene is 10 µg/m³, however it is also proposed that this be reduced to 3.6 µg/m³ in 2010. The population exposure data indicate that many New Zealanders living and working in urban and suburban areas are currently exposed to higher levels than this criterion. Exposure levels are likely to increase even more with increased VKT.
The study indicated that, because vehicles are essentially the only source of benzene emissions, as well as being the major exposure to benzene for most people, vehicle emissions make an even larger contribution to overall personal exposures than indicated by their estimated contributions to ambient air.
It would therefore be prudent to adopt a precautionary approach that manages benzene levels downwards.
4.2.8 Global Air Quality
Climate change is a global problem. One goal of New Zealand's Environment 2010 Strategy is to help stabilise atmospheric conditions of greenhouse gases. CO2 is one of the major greenhouse gases, and is a normal by-product of the combustion of hydrocarbon fuels. Motor vehicles, electricity generation, the petrochemical, steel and dairy industries are the main sources of CO2 in New Zealand. The generation of CO2 is a direct function of fuel consumption. The transport sector currently generates 42% of total CO2 emitted in New Zealand, with road transport alone contributing 39% of total CO2 emitted, and projected to increase by 50% over the next 30 years (NZ Govt, 2001).
Government policies to reduce CO2 target three areas, similar to the VFECS, namely:
- Improving vehicle efficiency;
- Transport supply management; and
- Travel demand management.
This Review forms part of the policy to review vehicle efficiency. That is, if petrol and diesel quality is such that a vehicle is enabled to run as efficiently as possible, CO2 (and all other air contaminant) discharges will be optimised. It is acknowledged, however, that no amount of initiatives related to fuel quality will offset the increase in CO2 emitted purely as a result of the projected increase in fuel consumption and VKT.
Changes to fuel specifications to decrease CO2 emissions must also be considered on a full life-cycle basis. The energy used by a refinery to process fuel generates significant quantities of CO2 and the benefits of "cleaner fuels" may be offset by the higher energy requirements to produce them. This calls for a value judgment on the relative merits of a localised (refinery) discharge of a global pollutant versus the myriad of mobile emissions of both local and global pollutants. A full life-cycle analysis is outside the scope of this Review and has not been conducted.
4.3 Environment - Water Quality
4.3.1 Water Contamination Arising from the use of Petrol and Diesel in New Zealand
Figure 4.5 provides a schematic illustration of the discharges to water, downstream of the refinery.
Figure 4.5 Discharges of Contaminants to Water Arising from the Use of Petrol and Diesel in New Zealand
There are two primary routes:
- Discharges arising during distribution of petrol and diesel throughout New Zealand. These include (accidental) spills and leaks, and discharge of "ballast" water from pipelines during tankship unloading.
- Emissions from vehicles in use, either directly onto a road surface, or into the atmosphere, from where they may be deposited on the road or neighbouring environments. Once deposited, contaminants are subsequently mobilised during rainfall and enter aquatic environments entrained in stormwater runoff.
The discharge of pipeline ballast water is likely to be the single largest point source discharge arising from the use of petrol and diesel in New Zealand. Pipelines which carry fuel from tankships to terminals are typically "rested", i.e. left sitting, with water in them. When a tankship is unloaded, this water must be flushed from the pipeline. The water, which contains dissolved hydrocarbons passes through oily water separators at the terminal, before being discharged to the local marine environment. Oil Industry guidelines indicate a level of 15 mg/litre as a typical industry standard for the concentration of total petroleum hydrocarbons (TPH) discharged in stormwater (MfE, 1998). This source of pollution is being eliminated as more and more terminals are changing to "water out" operation, that is, water is not used as ballast, and the pipeline remains full of diesel or petrol. This has environmental benefits, as well as reducing the level of water contamination of the fuel product.
(The issue of "water-free" or "water-out" operation also has implications for the use of oxygenates in petrol. Refer to the text box in Section 4.3.4).
Emissions from vehicles that may be deposited and subsequently entrained in stormwater runoff come from a range of sources including tyre wear, brake pad wear and oil use, as well as combustion and evaporative sources. The latter are the only emissions relevant to this review, that is, those emissions that arise directly from petrol and/or diesel use.
Evaporative emissions or products of combustion primarily enter the environment in the gaseous phase. For VOCs, atmospheric washout, which would result in contaminants being transported to the water phase is a possible, although minor, pathway. The more important contaminant in respect of potential stormwater contamination is particulates, which are deposited on road surfaces. Particulates, particularly from diesel engines, have been shown in international studies to contain polyaromatic hydrocarbons (PAHs), among other contaminants.
4.3.2 Legal and Policy Framework
Under the RMA, responsibility for managing water quality rests with regional councils (and unitary authorities). As with air discharges, a hierarchy of control is derived from regional policy statements and regional plans, such as regional coastal plans and/or freshwater plans. Such plans specify rules to permit certain activities, specify those that require resource consents and prohibit activities that are known to have serious adverse effects on local water quality.
As for air discharges, discharges to water arising from the consumption of petrol and diesel are either:
- Point source discharges to water bodies, controlled by setting resource consents, rules in plans, or regulations; or
- the multitude of diffuse point sources from roads and pavements that discharge, primarily via stormwater systems, to a range of receiving environments. Implementing controls on all these point sources is effected by a range of multi-party policy initiatives.
In New Zealand, there are no formal water quality criteria relevant to the contaminants present in discharges contaminated with petrol, diesel and their by-products. The Australia New Zealand Environment and Conservation Council (ANZECC) Guidelines for Fresh and Marine Water Quality (initially published 1992; re-issued in 2000) are the most commonly used of the international water quality guidelines.
The oil industry, in conjunction with MfE and local authorities, has developed voluntary guidelines for managing water discharges from petroleum industry sites, and these include guidance on "best management practices" (MfE, 1998). A similar document is in place to provide guidance on managing and controlling discharges to land and groundwater and on assessing contaminated sites (MfE, 1999).
4.3.3 Water Quality Indicators for New Zealand
The only indicator formally adopted by the EPI Programme in relation to fresh or marine waters relates to the trophic state of lakes, a factor of the nutrient loading on fresh water lakes. Other indicators are currently under development.
4.3.4 How Good is New Zealand's Water Quality?
The State of the Environment Report (MfE, 1997) concluded that the main sources of pressure on water quality are non-point source pollutants, primarily from diffuse pasture run-off, but also from paved road runoff. There is documented evidence that a buildup of contaminants occurs adjacent to urban stormwater outfalls discharging to aquatic environments. However, few studies have assessed the effect of stormwater from roads in the absence of other sources, such as industrial sites, residential properties and roof runoff, and there is little data on the concentrations of VOCs or PAHs in stormwater. It is therefore difficult to quantify the effects of road transport from water discharges.
The MOT is currently extending the VFECS programme to assess the impacts of emissions to the aquatic environment. A study is due to be published shortly that characterises the sources of emissions and pathways by which they enter the aquatic environment, and quantifies the contaminant loading.
MTBE and its Role as a Water Pollutant
The use in fuel of oxygenates (organic compounds containing carbon, hydrogen and oxygen) was made mandatory in the United States by federal law in 1990 on the grounds of their air quality benefits (reduced CO emissions). Methyl tertiary butyl ether (MTBE) is the most commonly used oxygenate and has been used in many parts of the world for a number of years as a petrol extender and octane booster.
MTBE and most other oxygenates, including ethanol, have an affinity for water, therefore if water is present in a fuel (or the storage vessel), oxygenates will preferentially partition into the water, and out of the petrol. In recent years MTBE has been found at low levels in groundwater in the USA. The primary route for contamination appears to be leakage from underground storage tanks.
At this stage the contamination levels are not perceived to be a health risk but MTBE is persistent and imparts an unpleasant odour and taste, even at very low concentrations. As a result, California has banned the use of MTBE and other ethers in petrol from the end of 2002 and other US states have followed. The issue is also under close scrutiny in the UK. Australia has recently announced that the MTBE content of petrol will be limited to 1% by volume from 2004 (EA, 2000c, 2001a).
Petrol sold in New Zealand does not generally contain MTBE at present, although the current specification allows it. Low levels of MTBE may occur from time to time in imported fuel due to contamination from previous cargoes. With the exception of Gull Petroleum, the New Zealand distribution infrastructure is not set up to allow completely water-free operation, which is necessary for petrol containing MTBE.
4.4 Health Effects
For the majority of the population, the primary route of exposure to petrol and diesel occurs via exposure to vapours, whether they be products of combustion or evaporation. Protection of human health is the primary basis for derivation of the ambient air quality guidelines, and air quality and health effects are intrinsically linked. However, some sectors of the population do have regular, direct interaction with petrol and diesel, as a result of their occupation.
4.4.1 Fuel Distribution Occupations
Tanker drivers and service station workers are occupationally exposed to petrol and diesel. In 1996, following the introduction of PULP and concerns over potential health effects of increased concentrations of aromatics, the retail oil companies (then BP, Caltex, Mobil and Shell) commissioned a study to assess worker exposure to the VOCs present in petrol (Woodward-Clyde, 1996). (Diesel has a much lower volatility than petrol; exposure to vapour from diesel is therefore considerably lower than that from petrol).
The study found that, in most cases, short term exposures for tanker drivers were well below the appropriate workplace exposure standard (WES); exposures above the WES did occur when the driver was required to attend to a spill during a delivery. For service station forecourt attendants, the study found exposures to be very low, significantly below the WES. The monitoring indicated that, of the VOCs analysed, benzene was the most significant compound relative to the WES values.
Regular personnel monitoring has been undertaken by most oil companies, to fulfil their obligations under the Health Safety and Employment (HSE) Act 1992.
The results of the study carried out on service station forecourt attendants provide a guide to the level of exposure to petrol vapours experienced by members of the public who "self-serve" petrol. Based on those results, members of the public, who are exposed less frequently and for shorter durations than occupational exposure, are unlikely to be exposed to significant health risks during such activities. (Estimates of total population exposure to VOCs, primarily benzene, are discussed in Section 4.2 and Appendix E).
4.4.2 Motor Trade Occupations
A similar study to that carried out for the fuel distribution occupations was commissioned by the Motor Trade Association (Woodward-Clyde, 1997a). Occupational exposure monitoring was carried out at selected garages to assess individual exposure to hydrocarbon vapours from petrol and other solvents. The results indicated that full-shift routine exposures to hydrocarbons were significantly lower than the WES and did not present a risk to the health of workers (Woodward-Clyde, 1997a). Short-term monitoring during specific tasks was also undertaken. These results indicated that exposure was elevated, but exposure during tasks involving petrol did not exceed the WES; the highest exposure occurred during interior car grooming using a hydrocarbon-based cleaner (Woodward-Clyde, 1997a).
As a result of the study, the MTA produced a practice guide for members on minimising occupational exposure.
4.5 Hazardous Substances Legislation
On 2July 2001, the hazardous substances provisions of the Hazardous Substances and New Organisms Act 1996 (HSNO) came into effect. The HSNO Act repealed the previous Dangerous Goods Act 1974 and the Toxic Substances Act 1979. The previous Dangerous Goods and Toxic Substances Regulations have been carried over into the HSNO Act under its transitional provisions. These Regulations will remain in force until the substances which they respectively regulate are transferred to the new HSNO regime. This transfer process will take place progressively over the next 3 - 5 years. The provisions of those Regulations as they currently stand and the implications of the new HSNO Regulations for petrol and diesel are discussed below.
Approvals for new hazardous substances (those not presently approved for use in New Zealand) and the assessment and classification of existing substances as part of the transfer will be the responsibility of the Environmental Risk Management Authority (ERMA).
4.5.1 Dangerous Goods Regulations
Petrol and diesel are regulated under the Dangerous Goods Regulations for their flammable properties. Petrol is classified as a Class 3(a) flammable liquid. Diesel, having a flash point exceeding 61°C, is classified as a Class 3(c) flammable liquid, along with other fuel oils. The Regulations cover storage, carriage, labelling and handling of flammable liquids. Until such time as the transfer of flammable liquids to the HSNO regime is fully completed and new HSNO controls set, the provisions of the Dangerous Goods Regulations will remain in force.
4.5.2 Toxic Substances Regulations
Motor fuels are not currently regulated as toxic substances under the Toxic Substances Regulations (they are listed as Exempted Substances under the Fifth Schedule). Part VII B of the Regulations (amended in 1999) defines a restricted petrol additive as a substance intended to be added to hydrocarbon fuels which contains more than 0.013g per litre of lead (i.e. not petrol itself). Regulation 49L prohibits the distribution, handling, importation, keeping, storage transport and use of such a substance, subject to certain exemptions.
4.5.3 Hazardous Substances and New Organisms Act 1996 and Regulations
HSNO will manage the effects of hazardous substances by imposing performance requirements in respect of their hazardous properties. These hazardous properties are:
| Explosiveness | Corrosivity |
| Flammability | Toxicity |
| Oxidising capacity | Eco-toxicity |
The primary (most immediate) hazard associated with petrol and diesel is their flammability and this is generally independent of their general composition (in as far their volatility characteristics will be regulated by the Regulations) or any additives they may contain. Likewise these substances are not considered to be corrosive, or oxidisers, or in the context of the HSNO Regulations, explosive. However they are toxic and also eco-toxic primarily due to their main constituents. Additives used in these fuels will generally be in very low concentrations and should not contribute significantly to their intrinsic hazardous properties, except perhaps in the case of their chronic and cumulative toxicity and ecotoxicity.
Under HSNO, each substance will be classified according to its hazardous properties against a set of threshold criteria. Controls will then be applied as necessary to manage the potential effects of these hazardous properties throughout the life cycle of the substance. Anyone wishing to import or manufacture a hazardous substance not previously approved for use in New Zealand will need to apply to the Environmental Risk Management Authority (ERMA) for the necessary approvals.
The transitional provisions carry over the previous provisions of the Dangerous Goods and Toxic Substances Regulations, with substances being progressively re-classified under HSNO and new controls imposed as necessary. Petrol and diesel are currently approved for use in New Zealand under existing legislation, but they will be subject to the transfer process described above.
Petrol is normally classified for transport as UN Class 3, Packing Group II, which equates to Flammable Liquid 3.1B under HSNO, though it could fall into Class 3.1A, depending on its initial boiling point (whether greater or less than 35°C). Diesel will be classed as a Flammable Liquid 3.1D. It is not known yet what classifications will be applied in respect of the other hazardous properties.
Similarly it is unclear whether HSNO will make any distinctions between fuels on the basis of any toxic or eco-toxic constituents or additives that they may contain. It is likely that there will be "blanket" approvals for "petrol" and "diesel" covering their hydrocarbon composition in a generic manner, and possibly some of the generic classes of common additives, such as detergents and dispersants. However, the use of any new additives that may impart new hazardous properties to the fuel may be considered as constituting a significant change (requiring approval and/or classification as a new substance) in terms of those minor constituents.
The application of HSNO will be limited to the manufacture, storage, handling, use and disposal of the hazardous substance. However, ERMA is also able to consider risks arising from the whole lifecycle when assessing any new substance for approval, which could include airborne emissions, if relevant.
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