0328—NATURAL GAS BUSES

Ms Clover Moore to the Deputy Premier, and Minister for Transport—

With regard to the social, economic and environmental comparisons between natural gas and diesel powered buses:

1. Is the Government aware that natural gas offers a net 20 percent advantage over diesel in terms of greenhouse gas emissions?
2. Is the Government aware that natural gas generates significantly less fine particle pollution than diesel?
3. Is the Government aware that diesel generates more pollutants such as hydrocarbon residues and nitrogen oxides than natural gas?
4. What action has the Government taken about noise pollution from diesel buses, following the Waverley Council study that showed diesel buses are considerably louder than natural gas buses?
5. What impact does the Government expect on the cost of diesel buses as a result of the increased cost of crude oil from US$30 a barrel to US$50 a barrel over a short period, and the expected continued increases in the cost of oil?
6. What is the comparable impact on the price of natural gas buses, given that gas prices have only increased at about the same rate as the CPI?
7. What research has the Government undertaken to look at the medium and long-term economic impacts of limited supply and import parity pricing of crude oil on the cost of diesel buses, and what does this research show?
8. Will the Government review the social, economic and environmental impacts of natural gas compared to diesel buses for the medium to long-term?
9. How does the Government consider comparative environmental factors such as greenhouse gas emissions, fine particle pollution, nitrous oxides emissions, hydrocarbon residues, and noise pollution associated with diesel and natural gas when making purchasing decisions for buses?
10. Will the Government purchase diesel or natural gas buses in future?

Answer—

I am advised:

Currently State Transit's fleet consists of 1,915 buses composed of 1,511 diesel and 404 Compressed Natural Gas (CNG) Buses. The emissions performance of the existing diesel fleet has markedly improved with the introduction and use of Ultra Low Sulphur Fuel.

State Transit has entered into the Roads and Traffic Authority's Clean Fleet Program in which emissions performance of the fleet is to be maintained by meeting clean fuel, engine setting, maintenance schedules and fault identification and repair criteria.

On 2 April, 2006 the Premier and I announced a $250 million plan to replace more than a quarter of State Transit's bus fleet - the biggest ever investment in new buses in NSW history.

The 505 bus contract with Smithfield-based Custom Coaches is the biggest single capital investment by any one operator in Australian history. An estimated 330 new jobs will be created over the life of the contract, including 50 apprenticeships, 80 direct jobs at the factory and 200 more positions at suppliers.

The bus replacement program will see 255 natural gas powered buses and 250 diesel buses purchased for Sydney and Newcastle. Every bus will be:

• a low-floored, fully accessible vehicle;
• air-conditioned;
• designed to meet the highest safety standards for drivers and passengers; and
• environmentally-friendly, generating the lowest emissions of any mass-produced conventional commercial buses in Australia.

The chassis will be sourced from top international manufacturers, with Daimler-Chrysler supplying the 255 CNG buses and Volvo supplying the 250 new diesel buses, which will meet the tough new EURO 5 emission standard.

Environmental factors were a key issue considered in the purchase of the new buses. The option we've selected gives the greatest benefit both environmentally and operationally. Under current negotiations, NSW is likely to be one of first jurisdictions in the world to begin running the brand new advanced Euro 5 diesel engine which is the latest in environmental technology.

The NSW Government is working hard to improve the reliability, comfort and safety of our public transport network. The first of the 505 new buses is expected to be in operation by the end of the year.

With regard to noise levels, I am advised that diesel buses comply with regulations relating to vehicle noise.

State Transit will invite submissions from suppliers of both gas and diesel technologies in the future. Decisions on bus purchases will then be based on a range of environmental, health, performance, service, regulatory and cost criteria.