Public comment invited on new fuel consumption information rule

The Government is seeking submissions on proposed changes to the way fuel consumption information is collected for light vehicles entering New Zealand.

The draft Fuel Consumption Information Rule proposes that importers of light vehicles provide accurate and reliable fuel consumption information and seeks to clarify how this information is collected.

“When a vehicle is first registered in New Zealand characteristics such as engine size, fuel type and vehicle colour are recorded. Currently information about the standards or technical requirements of the vehicle is not always provided,” said Associate Transport Minister Judith Tizard.

Fuel consumption information can come from four international test standards. Current requirements mean there is a risk that inaccurate or unreliable information can be lawfully supplied. The proposed changes will clarify the legal requirements around the process of collecting fuel consumption information. The new Rule will also provide the power to correct erroneous fuel consumption figures.

“Accurate and complete information is vital to ensure we get the greatest benefit from measures to improve the fuel economy of vehicles and address climate change. These measures include the Fuelsaver website (www.fuelsaver.govt.nz) which displays fuel economy information, a vehicle fuel economy labelling scheme and a policy for importers to ensure vehicles meet fuel economy standards. Having reliable, correct fuel consumption information is crucial to achieving our goals,” says Minister Tizard.

The proposed new Rule will link to the Land Transport Rule: Vehicle Standards Compliance 2002 which sets out the entry and in-service inspection and certification process for vehicles. It will apply to all light vehicles, manufactured on or after 1 January 2000, when they are first certified for use in New Zealand.

Public submissions on the draft Rule close on 7 March 2008. More information is available on the Land Transport New Zealand website at: www.landtransport.govt.nz

 Land Transport Rule: Fuel Consumption Information [2008]
Questions and Answers

Where does fuel consumption information come from?
Since 2005, Land Transport New Zealand has collected fuel consumption information for new vehicles manufactured after January 2005 and imported after February 2005. Fuel consumption information has also been collected for previously registered vehicles that were been manufactured after January 2000 and imported after February 2005. The fuel consumption information collected for all these vehicles is displayed on the fuelsaver website www.fuelsaver.govt.nz.

Why is this Rule being proposed?
The Rule is being proposed to provide accurate and reliable information about fuel consumption and to clarify the process of collecting fuel consumption information.

At present, information is collected using a form completed at first registration of a vehicle. This form, however, is designed to record the more straight forward characteristics of a vehicle, such as engine size, fuel type and colour and is not specific about the standards or technical requirements to obtain the required fuel consumption information. Fuel consumption information can be complicated because it is derived from any one of four international test standards. This gives rise to the risk that inaccurate or unreliable information may be lawfully supplied to the Motor Vehicle Registrar.

The Rule is intended to mandate existing processes and set out the technical requirements and test standards for the provision of the information.

The legislation behind the current form also provides for information which is not publicly specified, so the proposals in the draft Rule will help to make the process more transparent.

Why do we need to have accurate, reliable fuel consumption information?
New Zealand needs to have accurate and reliable information on vehicle fuel consumption to support the measures that are being developed by the Government to address climate change and improve the fuel efficiency of vehicles. Three of the policy options in this package of measures depend on the availability of accurate and reliable fuel consumption figures. These are:

• a sales-weighted standard for fuel economy;
• possible economic instruments based on fuel economy. For example, in Great Britain some vehicle taxes are based on fuel type and fuel consumption; and
• a fuel economy labelling scheme for new and used vehicles being developed by the Energy Efficiency and Conservation Authority.

The Rule changes will provide information that will assist in the development of these policies.

What changes does the Rule propose?
The Rule will require that people certifying vehicles for entry into the New Zealand fleet, provide fuel consumption information at the time of certification. In practice, this is when fuel consumption information is presently collected so the proposed Rule will broadly align the current practice with legislation. Fuel consumption information will have to be provided to specified standards.  The proposed changes will provide more legal robustness and clarity to the process of collecting fuel consumption information for vehicles before they are certified for entry into service in New Zealand.

The Rule will also provide for the power to correct fuel consumption figures that are erroneous and give vehicle owners an opportunity to have erroneous figures corrected.  It will be illegal to knowingly provide fuel consumption information that is false or to provide information that one believes is inaccurate.

Which vehicles will the Rule apply to?
The Rule will apply to light vehicles (vehicles with a gross vehicle mass not exceeding 3.5 tonnes), manufactured on or after 1 January 2000, when they are first certified for use in New Zealand. The requirement will apply for LPG, CNG, diesel and petrol powered light vehicles. The Rule will apply to the following the classes: passenger cars (Class MA), forward control passenger vehicles (Class MB), off road passenger vehicles (Class MC), omnibuses of not more than 12 seats (Classes MD1 and MD2 and light goods vehicles (Class NA).

Who will the proposed Rule affect?
The Rule will affect people who apply to have vehicles certified for entry into the New Zealand fleet. These are usually the people who imported the vehicles.

What changes will this mean for new vehicles importers?
By being prescribed in a land transport Rule, the requirement for fuel consumption information will be more transparent, which will enable some manufacturers to more easily get fuel consumption information from head offices. On the other hand, there may be some minor changes required to the computer system, used by new vehicle importers, in order to deliver more accurate fuel consumption figures to Government.

What changes will this mean for used vehicle importers?
In the past, only importers of used vehicles from Japan were required to provide fuel consumption information. The new Rule will require importers of used vehicles from all countries to provide fuel consumption for vehicles they import. The Rule will expand the number of sources from which people certifying used vehicles can obtain fuel consumption information.

How is fuel consumption information used?
Fuel consumption information is stored on the Motor Vehicle Register with other details about your vehicle. The fuel consumption figures (by vehicle type) can be accessed over the internet through the websites www.fuelsaver.govt.nz and www.rightcar.govt.nz. From April 2008, the fuel consumption figures will form the basis of the fuel economy information that must be displayed when a vehicle is offered for sale.

The information will also be used in the development of policies to increase fuel economy. For example, the Ministry of Transport is currently considering a policy on a fuel economy standard in which importers will have to make sure that the vehicles they import meet, on average, a particular fuel economy.

How is fuel consumption measured?
Most vehicles imported into New Zealand are new or used Japanese vehicles. Fuel consumption data for used Japanese vehicles is obtained using Japanese test procedures. Fuel consumption data for new vehicles may be obtained from Japanese, European, Australian or USA test procedures. Australia is in the process of aligning its fuel consumption requirements with Europe. Results from Japanese tests are not comparable to results from European or USA tests and vice versa.

All procedures involve a standardised test carried out under laboratory conditions where all outside influences, such as driving style, weather, gradient and road condition, are controlled. This allows test results to be compared to other results obtained from tests carried out under the same conditions.

New vehicle testing is carried out by independent test organisations or by the manufacturers at their own test facilities. The test results are normally part of the vehicle’s official certification in the country in which it is sold. The proposed Rule will accept test results from recognised jurisdictions and will allow a variety of units to be used.

For more information on how fuel consumption figures are derived go to: http://www.fuelsaver.govt.nz/explain.html

What will be acceptable as evidence of fuel consumption information?
To verify a vehicle’s fuel consumption information, one or more of the following must be provided:
(a) a manufacturer’s statement of compliance; or
(b) a type approval issued by a relevant authorised certification organisation; or
if the vehicle is a used vehicle:
(c) a fuel consumption statement (see http://www.landtransport.govt.nz/importing/fuel-consumption/index.html); or
(d) evidence from recognised foreign government websites; or
(e) evidence from the manufacturer’s website; or
(f) a certificate or letter issued by a recognised foreign government agency.

What fuel consumption information is required for dual fuel vehicles?
Dual fuel vehicles tend to be produced from after-market conversions. People certifying converted dual fuel vehicles will be required to have information only for the fuel used in the manufacturers test. In the case of a factory fitted dual fuel system, the manufacturer’s information will be required.

Will the introduction of the new Rule increase costs for vehicle dealers?
People certifying used vehicles will need to supply fuel consumption information. The Rule has been designed to make this as easy as possible. Minor system changes might be required for importers of new vehicles who will now be required to supply urban, extra-urban and combined cycle figures where applicable.

Will the introduction of the Rule increase the price of vehicles?
The minor additional administration required of some people who apply to certify vehicles is not expected to cause any increase in vehicle prices.

When is the Rule due to take effect? 
The Rule is expected to be in force late 2008.

How does the proposed Rule fit with other legislation?
The processes within the Rule will link to the process for entry certification. The proposed Rule will provide the legal basis for the collection of fuel consumption figures, as one of the many items that entry certifiers check to certify vehicles. The Rule will be implemented by entry certifiers appointed under 2.2(1) of the Compliance Rule and the information they enter is similar to that recorded under 4.3(f) of the Compliance Rule.

The Rule is empowered by sections 152(f), 155(a) and 155(f) (iii) of the Land Transport Act 1998. These sections give the Minister the power to make rules to improve environmental sustainability, set out standards and requirements concerning vehicles, and provide for the recording and availability of information about vehicles.

How do I have my say on the proposals in the draft Rule?
Public submissions are being sought on the proposals in the draft Rule. You can make your comments on the on-line submission form on Land Transport New Zealand’s website at www.landtransport.govt.nz/consultation/fuel-consumption-information or by email to info@landtransport.govt.nz. You can also post your comments. Guidance on making a submission can be found in the overview to the draft Rule.

How can I access the draft Rule?
The public consultation (yellow) draft of the Rule, together with supporting information, is available on Land Transport New Zealand’s website at www.landtransport.govt.nz/consultation/fuel-consumption-information. A printed copy can be obtained by calling Land Transport New Zealand’s Contact Centre on free phone 0800 699 000.

How can I obtain further information about the draft Rule?
Land Transport New Zealand’s Contact Centre will be able to assist if you can’t find the information you require in the Rule consultation material on the website.

What is the consultation process around the draft Rule?
The public consultation (yellow) draft Rule is being released for public consultation. The availability of the draft Rule and associated information material will be advertised in major daily newspapers. Groups and individuals who have registered their interest in this Rule will be advised of the availability of the yellow draft and invited to make a submission.

How long do I have to make a submission?
There is a four-week period for public consultation. Submissions close on 7 March 2008.

What will happen to my comments?
Comments made in submissions will be analysed and taken into account in redrafting the Rule for the final draft phase (including review by the Regulations Review Committee).  A summary of submissions will be presented to Cabinet, along with recommendations for any changes, when the policy development process is completed. The final version of the Rule will go to Cabinet for noting and will then be signed by the Minister.