Notice of Decision to Grant an Approval under the Fuel Quality Standards Act 2000 to Ashoil Pty Ltd

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au C2013G01978 In force Gazette

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ASSISTANT SECRETARY, ENVIRONMENT PROTECTION BRANCH,

DEPARTMENT OF THE ENVIRONMENT

NOTICE UNDER SECTION 17E OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION UNDER SECTION 13 OF THAT ACT FOR AN APPROVAL FOR A VARIATION OF THE FUEL STANDARD (AUTOMOTIVE DIESEL) DETERMINATION 2001

 

I, Andrew McNee, Assistant Secretary, Environment Protection Branch, delegate of the Minister for the Environment, provide the following information concerning my decisions to grant approvals under section 13 of the Fuel Quality Standards Act 2000 (the Act).

Name of approval holder

Ashoil Pty Ltd

Period of operation

The period of operation of the approval is from the date of the approval until 30 June 2014.

Details of the approval

The approval varies the fuel standard for automotive diesel set out in the Fuel Standard (Automotive Diesel) Determination 2001 (Diesel Determination) to allow the supply of diesel containing biodiesel at levels of more than five per cent (volume by volume) but not more than 20 per cent (volume by volume).

The approval applies to fuel supplied by Ashoil Pty Ltd and is subject to conditions set out in Annexure 2 to the approval instrument and in section 17 of the Act.

Summary of reasons for the approval

I grant the approval as provided for in section 15 of the Act for the following reasons: 

(a) The protection of the environment

Tailpipe emissions from diesel biodiesel blend use, compared to diesel, will have both positive and negative impacts on air quality as the level of biodiesel in the blend increases. In general, emissions of nitrogen oxides increase but particulate matter, hydrocarbons and carbon monoxide emissions all decrease.

(b)  The protection of occupational and public health and safety

In terms of safety data, diesel with a biodiesel content up to 20 per cent has been shown to be similar to diesel. Its impact on occupational and public health and safety should be no greater than diesel already supplied to the market.

(c)  The interests of consumers

Fuel dispensers will be clearly labelled to advise consumers that the diesel contains biodiesel and the percentage, more than five per cent volume by volume but not more than 20 per cent volume by volume. Any potential warranty issues for vehicles will, therefore, be addressed.

(d)  The impact on economic and regional development

As the level of biodiesel allowed in diesel has been capped at five per cent, the industry cannot legally supply blends higher than five per cent and represent the fuel as diesel. This results in a barrier to the development of an alternative fuels market in Australia. If such approvals are not granted, the restriction of blend levels could have a negative effect on the development of the Australian biodiesel industry.

 

 

 

 

 

Andrew McNee

Assistant Secretary

 

November 2013

 

 

Overview

The Fuel Quality Standards Act 2000 was enacted to establish a framework for regulating the quality of fuel sold in Australia. This legislation was introduced to address the need for standards that protect the environment, public health, and consumer interests while also facilitating economic and regional development, particularly in the alternative fuels sector. The Act allows for the setting of fuel quality standards and provides mechanisms for approving variations to these standards. The policy objective of the Act is to balance the environmental and health impacts of fuel quality with the economic benefits of fuel availability and industry development. The Parliament of Australia enacted this Act to provide a structured approach to managing fuel quality standards across the nation.

Scope and Application

The Fuel Quality Standards Act 2000 governs the standards of fuel quality in Australia, and under section 13 of this Act, the Assistant Secretary, Environment Protection Branch, Department of the Environment, has the authority to grant approvals for variations to fuel standards. The particular approval granted to Ashoil Pty Ltd allows the supply of diesel containing biodiesel at levels exceeding five per cent but not more than 20 per cent. This approval is applicable to the fuel supplied by Ashoil Pty Ltd and is subject to specific conditions outlined in Annexure 2 to the approval instrument and section 17 of the Act. The geographic reach of this Act is national, impacting all entities and industries involved in the supply of automotive diesel within Australia. The decision to grant this approval was based on considerations such as the environmental impact of biodiesel blends, the safety of such blends for public and occupational health, consumer information through fuel dispenser labels, and the broader implications for economic and regional development, particularly in relation to the growth of the biodiesel industry in Australia. This approval demonstrates the Act's flexibility in adapting fuel quality standards to promote sustainable practices while balancing various stakeholder interests.

Key Provisions

The primary operative sections of the Fuel Quality Standards Act 2000, as referenced in the gazette, pertain to the approval process for variations in fuel standards, particularly for automotive diesel. Under section 13 of the Act, the Minister for the Environment, through the Assistant Secretary of the Environment Protection Branch, may approve variations to existing fuel standards. The notice under section 17E of the Act informs the public of the decision made to grant such an approval. In this case, the approval granted allows for the supply of diesel containing biodiesel at levels higher than the current standard of five per cent but not more than 20 per cent (section 17E(1)(a)). The obligations and requirements imposed by this Act on parties such as Ashoil Pty Ltd are multifold. Firstly, the approval is subject to specific conditions as outlined in Annexure 2 of the approval instrument and section 17 of the Act (section 17E(1)(b)). This includes ensuring that fuel dispensers are clearly labelled to inform consumers about the biodiesel content in the diesel they are purchasing. This labelling must indicate that the diesel contains biodiesel and specify the percentage, which in this case is more than five per cent but not more than 20 per cent (section 17E(1)(c)). Additionally, the approval must be adhered to for the specified period of operation, from the date of approval until 30 June 2014 (section 17E(1)(d)). In terms of potential breaches and consequences, the Act does not explicitly detail specific offences or penalties for non-compliance within the provided notice. However, non-compliance with conditions stipulated in the approval or the general provisions of the Act could result in enforcement actions by the relevant authorities. Such actions might include fines, revocation of the approval, or other legal remedies as provided under the general legislative framework of the Fuel Quality Standards Act 2000. The specific maximum penalties would be determined in accordance with the broader legal context and any applicable regulations or subsidiary legislation.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.