The Labor Government’s New Vehicle Efficiency Standard has passed through the Senate unamended, thanks to a deal struck with the Greens.
The Greens agreed to back the bill to establish the New Vehicle Efficiency Standard in exchange for Labor abandoning its plan to allow gas projects to bypass environmental laws.
Related article: Govt announces modified New Vehicle Efficiency Standards
In March, the government announced modifications to its original New Vehicle Efficiency Standard in order to boost its chances of being passed in Parliament.
The modifications included:
- Recategorising a limited number of 4WDs from passenger car to light commercial vehicle. This acknowledges that some off-road wagons use similar ladder-frame chassis, and need comparable towing capacity above 3 tonnes, to dual cab utes. This includes models such as the Toyota Landcruiser and Nissan Patrol.
- Smoothing the emissions trajectory for light commercial vehicles. This reflects adjustments announced by the US EPA to its vehicle standard and smooths the transition for utes, vans and 4x4s.
- Adjusting the weight-based relative emissions limits (known as the break point), recognising that heavier vehicles emit more.
- Staging implementation to enable preparation and testing of essential data reporting capabilities. The scheme will commence on 1 January 2025 but manufacturers will not begin earning credits or penalties until 1 July 2025.
The government will provide $60 million to boost EV charging at Australian dealerships, under the Driving the Nation fund.
Advocacy group Solar Citizens welcomed the passing of the New Vehicle Efficiency Standard legislation, with CEO Heidi Lee Douglas saying, “The passing of the New Vehicle Efficiency Standard is a significant acceleration towards cheaper, cleaner vehicles and getting Australians behind the wheel of cars that run on sunshine.
Related article: Labor’s fuel-efficiency standards may settle the ute dispute—but there are still hazards on the road
“The new efficiency standard clears the road for more efficient, cheaper-to-run vehicles in the Australian market, including more efficient petrol models, electric vehicles, and hybrids.
“This new standard will reduce fuel costs for the average driver by about $1000 per vehicle per year. If you charge up your electric vehicle from your own rooftop solar, you can run your car on sunshine and further reduce fuel costs to near nil.”
