Noxious Emissions from Non-Road Diesel Engines

Draft Impact Analysis for public consultation

We are seeking feedback on the draft Impact Analysis (formerly a Regulation Impact Statement) for managing noxious emissions from non-road diesel engines.

Future management of diesel equipment will mean changes for industry, individuals, and Australia. Stakeholder feedback on the draft Impact Analysis will help the Australian Government make a well-informed decision.

Read the draft Impact Analysis and answer the consultation questions to have your say.

Submissions close 5pm AEST Friday 14 July 2023.

The Evaluation

What was the evaluation?

In April 2018, Environment Ministers agreed to an evaluation of the potential for a national approach to manage emissions from non-road diesel engines as a priority action under the National Clean Air Agreement. The Australian and New South Wales Governments worked together on the evaluation.

The evaluation was designed to inform our understanding of the non-road diesel sector in Australia, as well as possible management options.

Australia currently has no regulations to control noxious emissions from non-road diesel engines. Options considered included no change to current arrangements, voluntary industry agreements to meet emissions standards, and Government regulation that specifies emissions standards.

Why evaluate a national approach to manage non-road diesel engines?

Non-road diesel engines are used in a wide range of sectors and applications, including construction, mining, agriculture, marine and forestry. They emit particulate matter (mainly fine particles, PM_2.5), oxides of nitrogen, volatile organic compounds and a range of air toxics which are harmful to human health.

Non-road diesel engine emissions are the largest source of unregulated air pollution in Australia. Total particulate emissions from non-road diesel engines are significantly larger than total particulate emissions from all on-road motor vehicles in Australia (petrol, diesel and LPG), even though the number of non-road diesel engines is only about 3% of the number of on-road engines. Non-road diesel engines also accounted for around 6% of national greenhouse gas emissions in 2018.

Which products were included in the evaluation?

Non-road diesel engines refer to diesel-powered (compression ignition) engines used in a wide range of sectors and applications, including tractors, diggers, graders, rollers, haul trucks, generators, pumps etc.

The evaluation did not examine engines used in the non-road transport sector, being rail, aviation, and shipping (large marine engines over 130kW).

What did the evaluation find?

In mid-2022 the evaluation was completed. It assessed the potential outcomes of three different management scenarios. The three scenarios were assessed for the most important noxious emissions, population exposure, health impacts costs and benefits. These were compared to what is likely to happen if no action is taken (i.e. business as usual).

The three management options considered were:

Management Scenario 1: Industry agreement (non-regulatory). Industry would, in cooperation with government, agree to meet targets for sales of new non-road diesel engines which align with international best practice emission standards (US Tier 4f).
Management Scenario 2: Phased standards (Commonwealth regulation). In this scenario, interim emission standards (US Tier 3) would be introduced as soon as practicable, with a subsequent transition to standards that align with international best practice emission standards (US Tier 4f).
Management Scenario 3: Best practice standards (Commonwealth regulation). In this scenario, emission standards that align with international best practice (US Tier 4f) would be introduced as soon as practicable.

The evaluation found that Management Scenario 3 would be the most effective approach. Immediately implementing the highest engine emission standard would result in the best health and economic return for the community over the long term.

Evaluation of non-road diesel engine emissions management – cost-benefit analysis report

Executive summary

Non-road diesel engines - cost-benefit analysis Executive summary (PDF 273 KB)
Non-road diesel engines - cost-benefit analysis Executive summary (DOCX 88 KB)

Full report

Non-road diesel engines - cost-benefit analysis: final report (PDF 2.9 MB)
Non-road diesel engines - cost-benefit analysis: final report (DOCX 6.2 MB)

Non-road diesel engines - cost-benefit analysis: final report Attachments A-D (PDF 6.5 MB)
Non-road diesel engines - cost-benefit analysis: final report Attachments A-D (DOCXF 23.7 MB)

Non-road diesel engines - cost-benefit analysis: final report Attachments E-H (PDF 4.8 MB)
Non-road diesel engines - cost-benefit analysis: final report Attachments E-H (DOCX 15.5 MB)

Stakeholder webinars

Three stakeholder webinars were held in the week of 20 February 2023. They provided an overview of the cost-benefit analysis methods and findings, and outlined the next steps, including a soon to commence Impact Analysis process.

An Impact Analysis was previously referred to as a Regulation Impact Statement, It will provide the public with an opportunity to comment on the analysis undertaken by the Australian Government into the costs and benefits of regulating emissions from non-road diesel engines.

A copy of the webinar presentation slides, the presentation transcript, and a summary of the questions and answers posed during the webinars is provided below.

Impact analysis

Based on the findings of the evaluation, Minister Plibersek endorsed proceeding to an Impact Analysis process. This will assess the impact of implementing emissions standards. Once complete, the Australian Government will decide whether to regulate non-road diesel engine emissions.

What happens next?

Stakeholders are invited to review the draft Impact Analysis and submit their feedback during the consultation period.

We will consider the feedback and incorporate it into the final Impact Analysis provided to the Australian Government for their decision.