9 May
2006 - The Minister for the Environment and Heritage,
Senator Ian Campbell, today announced new funding
of $11.5 million over five years as part of the
2006-07 Budget to deliver on the Australian Government's
biofuels agenda and $5.6 million to ensure fuel
quality compliance.
"This funding allows us
to investigate how to achieve significant air
quality benefits from ethanol use, which has implications
for both environmental and human health,"
Senator Campbell said.
Senator Campbell said the package
would contain a large research component, with
$4.4 million for two major studies into ethanol
to address market barriers and restore consumer
confidence in the biofuels industry commencing
immediately. The studies will:
• explore the suitability of
low ethanol blends for wider use and inform decision
making on whether E5 blends (5 per cent ethanol,
95 per cent petrol) may be sold unlabelled; and
• investigate the health effects of ethanol blends
-including the potential for a decrease in the
amount of harmful particulate emissions as a result
of using fuel blends. The study will also address
air quality in Australian cities - in particular,
how the evaporative performance of ethanol blends
affects the formation of ground level ozone.
The Budget also contains $5.6 million over four
years to ensure fuel quality compliance. This
will enable the Government to actively support
fuel quality through its fuel sampling programme
which monitors and ensures the quality of fuel
supplied to consumers around Australia. The fuel
sampling programme has been underway since 2002
and has supported Australia's transition to better
quality and more environmentally sustainable fuels.
"Motorists pay heavily
for their fuel, and are entitled to high quality
fuel, which helps to ensure cleaner emissions,
more effective engine operation and reduced pollution,"
Senator Campbell said.
The 2006-07 Budget also provides
$0.4 million to fund biodiesel projects, including
a biodiesel trial in Kakadu National Park and
investigating the need for a biodiesel blends
fuel standard.
Fuel standards are a key part
of the Government's national air quality response
and have been welcomed by the community, vehicle
manufacturers and importers and the refinery industry.
Fuel standards encourage the
production and take-up of cleaner fuels and reduce
the impacts of vehicle emissions on human health.
Without the fuel standards, the community would
face an extra $3.4 billion in avoided health costs
until the year 2020.
"The Australian Government's
investment in biofuel quality will increase Australian
consumers' confidence in fuels that can benefit
the household budget, Australian industry and
our environment," Senator Campbell said.
Why is this important?
• This initiative makes provisions for better
quality fuels which, in turn, are better for the
environment. It also investigates the potential
air quality and human health benefits of biofuels.
Who will benefit?
• This initiative will benefit the Australian
community (through helping to ensure better quality
fuels, including biofuels), our biofuels industry
and the environment through provision of cleaner,
greener fuels.
What funding is the Government committing to the
initiative?
• The Australian Government is committing $17
million in total, including $11.5 million, which
includes the $0.4 million biodiesel projects,
to the biofuels initiative and $5.6 million to
the fuel quality compliance initiative.
What have we done in the past?
• This initiative is part of the Australian Government's
Biofuels Action Plan.
• The Plan, released by the Prime Minister on
22 December 2005, will underpin the future for
a sustainable biofuels industry in Australia.
• Under this Plan, industry expects to meet, if
not exceed, the Government's biofuels target of
350 megalitres (ML) by 2010.
When will the initiative conclude?
• The initiative is funded over five years and
will conclude in 2009-10.
