COMMONWEALTH OF AUSTRALIA
Fuel Quality Standards Act 2000
Section 13
GRANT OF APPROVAL
I, Andrew McNee, Assistant Secretary, Environment Protection Branch, delegate for the Minister for Sustainability, Environment, Water, Population and Communities, pursuant to section 13 of the Fuel Quality Standards Act 2000 (the Act), after consultation with the Fuel Standards Consultative Committee as required by section 24A of the Act, hereby grant this approval to Glencore Singapore Pte Ltd (the approval holder) (ABN 42 883 745 924).
This approval varies the fuel standard for automotive diesel set out in the Fuel Standard (Automotive Diesel) Determination 2001 (the diesel determination) so that automotive diesel containing more than five per cent volume by volume biodiesel but not more than 20 per cent volume by volume biodiesel (diesel biodiesel blend) will be taken to comply with the biodiesel parameter specified in the diesel determination.
This approval applies to diesel biodiesel blends supplied by the approval holder and the regulated persons specified in Annexure 1.
This approval is granted subject to the conditions specified in section 17 of the Act and the conditions specified in Annexure 2 of this approval.
This approval comes into force on the date of signing and remains in force until 30 June 2014.
Dated 19 December 2012
Andrew McNee……......................................................
Delegate of the Minister for Sustainability, Environment, Water, Population and Communities
Annexure 1
Regulated persons
The following are regulated persons under paragraph 13(1)(b) of the Fuel Quality Standards Act 2000:
Freedom Fuels Australia Pty Ltd | ABN 67 345 908 833 | 8/16 Theodore Street Eagle Farm PO Box 161 Hamilton Central | QLD | | 4009 |
Annexure 2
Conditions of approval
The approval is subject to the following conditions:
- The diesel and biodiesel used to create the blends covered by the approval must, before the two fuels are blended, comply with the applicable fuel standard i.e. the Fuel Standard (Automotive Diesel) Determination 2001 and the Fuel Standard (Biodiesel) Determination 2003:
the committee considers that an exception to this condition is compliance with the density specification in the Fuel Standard (Automotive Diesel) Determination 2001 before blending. A lower density than specified in the Determination should be permitted in the diesel to provide some flexibility for blenders in complying with the density specification in the final blend.
even though it is not expected that the majority of approval holders would need to rely on this exception, it would assist with the ongoing management of higher blends if the approval holder was required to report on the volume of lower density diesel blended with diesel to produce the blend covered by the approval and also the minimum density levels of the diesel before blending.
2. The fuel must be clearly labelled at the point of sale or supply identifying the fuel as a blend of diesel and biodiesel:
the approval should clearly specify that the fuel must not be misrepresented as suitable for all diesel vehicles.
3. All fuel dispensers supplying fuel that is covered by the approval must be clearly labelled as follows (consistent with the ethanol information standard), to advise consumers of the biodiesel content in the diesel:
‘contains up to x% biodiesel’, where x is no less than the percentage of biodiesel in the blend, or
‘contains y% biodiesel’ where y is the percentage of biodiesel in the blend.
4. The applicant must provide reports to the department covering the volume of supply under the approval for the periods:
from the date of signing of the instrument of approval to 30 June 2013
1 July 2013 to 31 December 2013
1 January 2014 to 30 June 2014
The reports are due no later than 30 days after each period ends.
Overview
The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to establish standards for the quality of fuel sold in the country, addressing issues related to environmental pollution and the promotion of sustainable energy practices. This legislation allows for the setting of fuel quality standards and the approval of deviations from these standards under certain conditions. The Act aims to balance the need for cleaner fuels with the practicalities of fuel production and distribution. The Minister for Sustainability, Environment, Water, Population and Communities has the authority to grant approvals that vary the fuel standards, ensuring that any changes are carefully considered and do not compromise the overall quality or environmental objectives of the legislation.
This specific approval, issued under Section 13 of the Act, allows Glencore Singapore Pte Ltd to supply automotive diesel blends containing between 5 and 20 per cent biodiesel, varying from the standard set by the Fuel Standard (Automotive Diesel) Determination 2001. This decision was made following consultations with the Fuel Standards Consultative Committee, ensuring that the approval aligns with the policy objectives of the Act, including environmental protection and the promotion of renewable energy sources. The approval is subject to conditions that ensure the quality and transparency of the fuel supplied, reflecting the Act’s commitment to maintaining high standards while facilitating innovation in fuel composition.
Scope and Application
The Fuel Quality Standards Act 2000 governs the quality of fuel in Australia and this particular legislation modifies the fuel standard for automotive diesel to allow for blends containing between five and twenty per cent biodiesel. This Act applies to Glencore Singapore Pte Ltd, the approval holder, and other regulated persons as specified in the legislation. The approval is contingent upon compliance with certain conditions, such as ensuring the diesel and biodiesel used in the blends meet specific standards before being blended, labelling the fuel correctly at the point of sale or supply, and providing detailed reports to the department about the volume of supply under the approval. The geographic scope of this Act is national, with the Commonwealth of Australia setting these standards to regulate the quality of fuel across the country. There are no exclusions or exemptions mentioned in the text, and the Act's application extends through subordinate instruments such as the Fuel Standard (Automotive Diesel) Determination 2001 and the Fuel Standard (Biodiesel) Determination 2003, which outline the specific standards that must be met.
Key Provisions
Section 13 of the Fuel Quality Standards Act 2000 (the Act) provides the mechanism for granting approvals that vary the fuel standards. This specific approval, issued by the Assistant Secretary, Environment Protection Branch, allows Glencore Singapore Pte Ltd (ABN 42 883 745 924) to supply automotive diesel containing between five and twenty per cent volume by volume biodiesel, known as diesel biodiesel blend. This approval modifies the existing standard set out in the Fuel Standard (Automotive Diesel) Determination 2001. The approval applies to the specified blends supplied by the approval holder and regulated persons listed in Annexure 1. It is subject to conditions outlined in section 17 of the Act and detailed in Annexure 2 of the approval.
The obligations imposed on Glencore Singapore Pte Ltd and the regulated persons include ensuring that the diesel and biodiesel used in the blends meet the applicable fuel standards before blending. However, an exception allows for a lower density of diesel before blending, provided the final blend complies with the density specification. Glencore and the regulated persons must clearly label the fuel at the point of sale to indicate it is a blend of diesel and biodiesel and must not be misrepresented as suitable for all diesel vehicles. Additionally, fuel dispensers must be labelled with the biodiesel content, either indicating 'contains up to x% biodiesel' or 'contains y% biodiesel', where x and y represent the biodiesel percentage in the blend. Finally, Glencore is required to submit reports to the department detailing the volume of supply under the approval for specified periods.
Breaching the conditions of the approval or failing to comply with the obligations set out in the Act could result in legal consequences. Although the Act does not explicitly detail specific offences, penalties, or consequences for breach in this approval, general provisions within the Act may apply. Typically, breaches of fuel quality standards could lead to enforcement actions by the relevant authorities, including fines, corrective measures, or revocation of the approval. The exact penalties would depend on the nature and severity of the breach, as well as any relevant guidelines or precedents established under the Act.