EPA APPROVED VEHICLE TESTER PROGRAMS

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1 INFORMATION BULLETIN EPA APPROVED VEHICLE TESTER PROGRAMS Publication 1119 April 2007 INTRODUCTION Motor vehicles are an important part of modern life. They provide a high degree of personal mobility and are critical to the movement of goods and services across Victoria. However, the benefits come at a cost. The motor vehicle is also a significant source of emissions of air pollutants and noise, which affect the health and lives of many Victorians. Although modern vehicles are much cleaner and quieter, reducing emissions of air pollutants and noise from the vehicle fleet remains one of the most important environmental management issues in Victoria. The majority of the community, and vehicle owners, ensure their vehicle s emissions are kept as low as possible through proper and regular maintenance. A small minority, through deliberate or uncaring actions, increase the air pollution burden on the remainder of the community. With the increasing stringency of emissions standards, this will have a greater effect on the community in the future. EPA is proposing to develop a network of approved testers to enable vehicles to be checked for tampering with emission (pollution) controls, and an approved diesel vehicle emissions test facility for testing heavyduty diesel vehicles for diesel emissions. The proposals will enable EPA to ensure more effective deterrence, compliance and rectification by providing vehicle owners with more choice, means and opportunity to rectify any non-compliance. Clients will be able to choose a convenient date and time for a test. Those vehicle owners reported for pollution control issues will be able to choose the nearest convenient tester and thereby have less distance to travel. These new programs will enable EPA to improve resourcing of vehicle pollution compliance programs and extend its training activities. It will also enable the extension of the programs into outer metropolitan Melbourne, Geelong and country regions, thus affecting a wider and fairer coverage. Developing a test facility for diesel emissions and an associated test program described below will enable Victoria to meet the national goals relating to the test capability for determining diesel vehicle exhaust emissions and provide a mechanism for qualifying for the fuel tax credits scheme. EPA is seeking comments from the public and industry concerning these programs and the proposed test fees. BACKGROUND In Melbourne, motor vehicle emissions contribute the following levels of pollutants to the overall air quality: 80 per cent of carbon monoxide 60 per cent of nitrogen oxides 40 per cent of volatile organic compounds 30 per cent of particulate matter - resulting in winter smog Nitrogen oxides and volatile organic compounds combine to form ozone (summer smog). Particle pollution is a significant problem in Melbourne, both for its primary effects and for its tendency to form smog in the cooler months. The majority of motor vehicle related particulate matter originates from diesel vehicles. Despite an increase in the amount of motor vehicle use, emissions from motor vehicles have been dropping since EPA's air monitoring stations have found nitrogen dioxide and carbon monoxide levels to have more than halved since 1985, and the number of days the health standard for ozone is 1

2 exceeded each year has decreased from a high of 18 down to almost zero. Furthermore, with the introduction of unleaded petrol the amount of airborne lead has decreased to such an extent such that monitoring for this pollutant ceased in Diesel vehicles contribute disproportionately to urban air pollution. Although diesel vehicles comprise less than 10 per cent of the Australian fleet, they contribute about 40 per cent of the oxides of nitrogen (a precursor to the formation of smog), and 60 to 80 per cent of particle emissions. These particles have been identified as a major health risk. In response to this, the National Environment Protection Council instigated a National Environment Protection Measure for Diesel Vehicle Emissions (Diesel NEPM) for the management of emissions from in-service diesel vehicles. For more information see In Victoria, the Commonwealth has provided funding to support the implementation of the Diesel NEPM, resulting in the creation of a test and training infrastructure for diesel vehicle emissions. The Environment Protection Act 1970 (the Act) contains a range of instruments or tools that are used by the Environment Protection Authority to control the impact of vehicles on our environment. The Act enables regulations to be made prescribing emission and noise standards for vehicles and standards for petrol. The Environment Protection (Vehicle Emission) Regulations 2003 (the Regulations) are a key component of Victoria s statutory framework for protecting the community from in-service vehicle emissions and noise. They provide this protection by setting emission and noise standards for vehicles and by establishing a series of offences for modifying and tampering with vehicle fuel, emission control and noise control systems. New vehicles must meet strict air and noise pollution requirements (Australian Design Rules) mandated by the Federal government. To ensure continuing compliance, vehicles should be kept, maintained and repaired according to the manufacturer s specifications. Tampering with pollution controls allows greater amounts of pollution to be emitted. The Regulations also provide the basis for important EPA programs such as the public reporting of smoky vehicles. CURRENT PROGRAMS EPA Victoria operates a number of vehicle air and noise pollution compliance programs. These programs include the public smoky vehicle reporting program that enables members of the community to report vehicles they observe emitting excessive smoke. Last year more than 10, 000 vehicles were reported by the public. The large number of reported vehicles demonstrates the community s discontent with vehicles that pollute the air through deliberate modification or poor maintenance. EPA also operates a second, parallel official smoky vehicle reporting program relying on reports from EPA and Victoria Police officers using the 10 seconds smoke rule. These reports have significant penalties associated with them including fines or prosecution in court. The EPA noisy vehicle reporting program deals with vehicles that have been reported by members of Victoria Police or officers of EPA as being excessively noisy or having a faulty exhaust. The registered owner must obtain a certificate of compliance for noise from an EPA approved noise tester. These approved noise testers are people appointed under the Act by EPA with the responsibility for testing vehicles for noise , , , , , ,022 Noise test notices issued This noisy vehicle program has been in operation since 1986 and has been widely regarded as a model of an effective enforcement program by other jurisdictions. Victoria Police also report vehicles that they have inspected and found or suspect that the pollution controls are not correct, have been modified or removed, or have extra components added which can affect the pollution that is emitted by the vehicle. Under EPA s anti-tampering reporting program registered owners are required to present their vehicle to the EPA Vehicle Inspection Station, Macleod. Legal action is taken if the vehicle is found not to comply with the legislated requirements: for example by issuing a pollution defect notice. Approximately 1500 vehicles were reported last year with the majority of them being required to be presented for an inspection and test at the EPA Vehicle Inspection Station, Macleod by technical officers. The remainder were issued warning notices. This number is expected to increase as EPA s training activities continue and increase. 2

3 Vehicle emissions systems test notices issued Tampered Vehicles Tested Currently EPA officers perform all inspections and tests at the EPA Vehicle Inspection Station, Macleod and previously at the Vehicle Testing Station, Altona PROPOSED PROGRAMS In parallel with the noisy vehicle program, EPA is proposing to develop: (i) an approved vehicle emissions systems tester (AVEST) network to enable vehicles to be checked for tampering with emission (pollution) controls;and (ii) an approved diesel vehicle emissions test facility for testing heavy-duty diesel vehicles for diesel emissions. Currently EPA officers are performing the role that the AVESTs will carry out as described above. Extensive training of members of Victoria Police has resulted in an increase in the numbers of vehicles reported with requests for additional training of officers. The AVEST network will initially be established in the Melbourne metropolitan area before being extended to regional Victoria. For diesel vehicle testing, the tester will be centrally located in the Melbourne metropolitan area to enable the vehicles within this area to be most effectively targeted. EPA s smoky vehicle program is to be modified so that reports from Victoria Police or EPA officers of smoky heavy-duty diesel vehicles operating in the metropolitan area will be referred to the test facility. APPROVED TESTER NETWORKS Approved testers will be people appointed by the Environment Protection Authority with the responsibility for inspecting and testing vehicles for air and noise emissions on behalf of EPA. Members of Victoria Police or officers of EPA will have reported these vehicles in writing as having: (i) emission controls which depart from the vehicle manufacturers specification ('tampering ) (additionally, they may have an excessively noisy or faulty exhaust), or (ii) visible exhaust emissions for a continuous period in excess of 10 seconds. Police officers will have stopped and inspected the vehicle in the course of their duties and have noted issues with the pollution controls in their report to EPA. The vehicle driver may therefore be aware that a potential offence has been committed and that the vehicle will be reported to EPA. For visible emissions, Police or EPA officers will have observed the vehicle while it was being driven on the road. In such instances it would not have been necessary to stop the vehicle. Visible emissions from a vehicle in excess of 10 continuous seconds is an offence against the Act with a significant penalty associated with it. Prior to further action, the current practice of these reports being assessed by an EPA technical officer will continue as a quality assurance measure. In both cases, owners of these vehicles will be required by a legal notice issued under Section 55AC of the Act to present their vehicle to an approved tester and obtain a certificate before a specified date. Approved testers will conduct an inspection and test on the vehicle to determine if the vehicle complies with the Environment Protection (Vehicle Emissions) Regulations When the vehicle complies with the regulations, the tester will issue a certificate of compliance to the person presenting the vehicle. Owners who fail to lodge this certificate with EPA by the due date can be fined and possibly have their vehicle s registration suspended. It is an indictable offence for an approved tester to supply misleading or false information on a certificate of compliance, with the offender being liable to a court-imposed fine of up to $257,832. The test and inspection process, based on current operational experience, is expected to take no more than 60 minutes for either program. Preliminary discussions with Victoria Police and other agencies both within Victoria as well as interstate have resulted in strong support for these new programs. 3

4 VEHICLE EMISSIONS SYSTEM TESTING - BENEFITS AND COSTS OF THE PROPOSED PROGRAMS Maintenance of existing system Technical officers will be able to meet strict quality requirements. EPA will have to expend further resources to maintain current and future programs. EPA is limited in the number of vehicles that can be checked at its Vehicle Inspection Station (VIS), Macleod. Clients (that is, those receiving an EPA notice) may have to travel excessive distances to get to the inspection station. Clients are required to present the vehicle at an EPA specified time and date that may be inconvenient to them. Coverage is legally limited to a 50-kilometre radius of the VIS, thus outer metropolitan Melbourne, Geelong and regional areas are not covered. Offenders outside this radius are dealt with by warning letters. AVEST Program EPA will be able to improve resourcing of this program and extend its training activities. The program will be able to deal with the increasing number of vehicles that are being reported by Victoria Police. The program will provide an efficient mechanism to enable Victoria to implement a consistent approach with NSW to vehicle inspection standards. Clients will be able to choose the nearest convenient tester and thus have less distance to travel. Clients will be free to choose a convenient date and time to go for a test. EPA will be able to extend the program into outer metropolitan Melbourne, Geelong and country regions, thus affecting a wider and fairer coverage. The program will provide a benefit to businesses engaged in repairing and maintaining pollution control equipment The program will provide for a more uniform application of regulations Testers can act as an information and repair resource for owners who wish to modify their vehicles so as to be legally acceptable. There will be a service fee cost to clients EPA will incur set up and operating costs for the program EPA will have to provide an increased audit capability for the program 4

5 The user pays approach is consistent with other regulatory regimes associated with safety related offences, for example, unroadworthy notice. Via its educational aspect, the program gives owners an opportunity to rectify the problem instead of incurring an immediate fine for the offence. Test Fee Approved testers will be able to charge a fee, set by EPA under the Act, for each test and inspection they conduct. This fee is set to provide for the cost to their business of supplying this service. It is not returned to EPA or government. The proposed fee is six fee units for the initial test and inspection, and three fee units for second and subsequent re-tests or re-inspections when taken to the same tester should the vehicle fail the initial inspection or test. The differential fee applies because the tester will not have to conduct a complete check of the vehicle, only check the defective items. The three fee unit cost is consistent with the fee currently charged by EPA approved noise testers for a noise test. A fee unit is currently valued at $ Six fee units are $71.00 including GST. Three fee units are $35.50 including GST. The Victorian Government reviews the value of fee units annually. The initial test and inspection is expected to take no more than one hour based on EPA s current operating experience. Taking into consideration labour and operational costs, a one-hour test equates to approximately $70 on a cost recovery basis. This fee level is considered to be the minimum level for cost recovery. It is expected that businesses will leverage this activity to provide extra services to their clients. A comparable regulatory activity is that of a licensed vehicle tester providing a roadworthy certificate. The fee for this service is unregulated, but a survey has indicated that for a standard passenger car in good condition the fee is approximately $75 upwards. DIESEL VEHICLE EMISSIONS TESTING - BENEFITS AND COSTS OF THE PROPOSED PROGRAM Maintenance of existing system Lack of test infrastructure avoids cost burden to vehicle owner/government of testing. No differential treatment between users in metropolitan versus regional areas. EPA does not possess the ability to verify vehicle compliance with the in-service diesel emission regulation. Victoria will not have the infrastructure needed to meet the Diesel NEPM requirements relating to determination of a vehicle s operating condition for exhaust emissions. There is no definitive measure to ensure vehicles have been repaired or meet the legislation s requirements. 5

6 Diesel emissions test program Victoria will be able to meet the Diesel NEPM goal relating to the test capability for determination of diesel vehicle exhaust emissions. Clients will be free to choose a convenient date and time to go for a test. The vehicle owner will not incur the cost for the initial emissions test. The tester can act as an information resource for owners who wish to rectify their vehicles so as to comply with legislative requirements. The facility will provide a means for owners to qualify for the fuel tax credit scheme for heavy diesel vehicles. Via its educational aspect, the program gives owners an opportunity to rectify the problem instead of incurring an immediate fine for the offence. Clients will incur a lost-productivity cost in the time taken to travel to/from and submit to test. EPA/Commonwealth will incur set up and operating costs for the program. EPA will have to provide an increased audit capability for the program. The cost for the initial emissions test is to be met by the EPA /Commonwealth. Clients will incur a fee for a retest should their vehicle fail the initial test. Test Fee EPA will reimburse the approved tester for the cost of the initial vehicle emissions test. EPA has been provided with funding from the Commonwealth under a Diesel NEPM grant to enable this to be done. To ensure wider and fairer coverage this will not extend to a retest. Owners will be provided with time to rectify any problems prior to the test being conducted. The vehicle owner will be liable for the cost of a retest should the vehicle fail the initial test. This cost is the same amount as that reimbursed by EPA to the tester for the initial test. The proposed fee is $250, and has been calculated to cover the cost of providing the vehicle test in a sophisticated, complex and labourintensive purpose-built emissions test facility. Queensland and South Australia have similar programs but have opted for a full user pays model in which the vehicle owner will be required to pay for all tests regardless of the outcome. The agencies have indicated that their fees will be in the order of $300 to $350 per test. TESTER COMPETENCIES Vehicle emissions systems testers will need to have extensive specialised knowledge and experience of vehicular emissions systems and must successfully undertake a written and practical test. EPA will also audit the premises and business to ensure applicants have the skills, knowledge, competencies, capabilities and equipment to undertake the program. EPA will provide technical advice and support to enable continued participation in the program. The approved tester for diesel vehicle emissions has been selected through a lengthy competitive bid and review process which examined their expertise in running an emissions test facility, knowledge and experience of the associated quality systems, and ability to perform in a service-provision capacity. The tester chosen provided a proposal that exceeded the requirements for the facility within a business model with long-term viability based upon a competitive operational cost structure and a diversified revenue base. PUBLIC INPUT EPA is seeking comments from the public and industry concerning these programs and the proposed test fees. EPA is also seeking expressions of interest from people who may be interested in becoming an approved vehicle emissions systems tester. These may be sent by 1 June 2007 to Mail: Vehicle Testing Networks Environment Protection Authority GPO Box 4395QQ, MELBOURNE VIC vehicle.enforcement@epa.vic.gov.au Contact details, including name, address and daytime telephone number, must be included. 6