Fuel Security (Target Number of Days) Declaration 2022

Overview

The Fuel Security (Target Number of Days) Declaration 2022, enacted on 8 November 2022 by the Hon Chris Bowen MP, Minister for Climate Change and Energy, is a notifiable instrument made under the authority granted by the Fuel Security Act 2021. This declaration was introduced to address the need for setting specific target numbers of days for various fuel security measures over designated periods. The Act aims to ensure Australia’s fuel security by establishing targets for the number of days of fuel reserves required for different activities and products. The declaration specifies the target number of days for importing and refining gasoline, diesel, and kerosene, effective from 1 July 2023 to 30 June 2024, and from 1 July 2024 onwards. The targets are set to ensure that Australia maintains an adequate fuel supply to meet its energy needs effectively.

Scope and Application

The Fuel Security (Target Number of Days) Declaration 2022 applies to the activities of importing and refining of specific fuel products within Australia for the specified periods. It is applicable to the activities of entities involved in importing and refining gasoline, diesel, and kerosene, as identified under the Fuel Security Act 2021. The geographic scope of this declaration is nationwide, targeting the activities within the Commonwealth of Australia. It sets forth the target number of days for the maintenance of specified levels of fuel security for the listed products, with different targets for the periods starting on 1 July 2023 and ending on 30 June 2024, and for the period commencing on 1 July 2024. This legislation does not specify any exclusions, exemptions, or thresholds within the declaration itself but is subject to the broader provisions of the Fuel Security Act 2021. The application and enforcement of the targets are contingent upon the provisions of the Act and may be extended or restricted through subordinate instruments made under the authority of the Act.

Key Provisions

The main operative sections of the Fuel Security (Target Number of Days) Declaration 2022 (the Declaration) declare the target number of days for specific MSO activities and products, specifically for the periods beginning on 1 July 2023 and ending on 30 June 2024, and on and from 1 July 2024. The declaration specifies the target number of days for importing gasoline, diesel, and kerosene, as well as for refining gasoline, diesel, and kerosene (sections 2 and 3). These target numbers are intended to provide a clear and measurable goal for the security of fuel supply in Australia. The Declaration imposes obligations on the parties or entities it governs by setting specific target numbers of days for fuel security. These targets are intended to ensure that there are sufficient days of fuel supply available to meet the needs of the Australian market. The declaration applies to both importing and refining activities, with different target numbers specified for gasoline, diesel, and kerosene (section 2). The target numbers reflect the different requirements and characteristics of each fuel type, as well as changes in market conditions and supply chain dynamics over time. Failure to meet the target numbers specified in the Declaration may result in civil or criminal consequences, although the specific penalties are not outlined in the Declaration itself. Under the Fuel Security Act 2021, failure to comply with the Act or any regulations or directions made under it may result in fines, imprisonment, or both (section 35). The maximum penalties for contravening the Act depend on the nature and severity of the offence, and may be higher for repeat or aggravated offences (section 36). It is therefore important for parties and entities governed by the Declaration to ensure that they comply with the target numbers specified, in order to avoid any potential legal or financial consequences. In summary, the Fuel Security (Target Number of Days) Declaration 2022 sets specific target numbers for fuel security in Australia for the periods beginning on 1 July 2023 and ending on 30 June 2024, and on and from 1 July 2024. The declaration imposes obligations on parties and entities to meet these targets, and failure to do so may result in civil or criminal consequences under the Fuel Security Act 2021. It is therefore important for all relevant parties to understand and comply with the requirements of the Declaration in order to ensure the security of fuel supply in Australia.