NOTICE UNDER SECTION 17E OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION TO VARY AN APPROVAL GRANTED UNDER SECTION 13
I, Andrew McNee, Assistant Secretary, Environment Protection Branch, Department of Sustainability, Environment, Water, Population and Communities, delegate of the Minister, provide the following information concerning my decision made pursuant to section 17E of the Fuel Quality Standards Act 2000 (the Act) to vary an approval granted under section 13 of the Act to add regulated persons to the approval.
Name of approval holder
Mobil Oil Australia Pty Ltd
Period of operation
The Approval, as varied, comes into force on the date of signing and remains in force until 24 May 2014.
Details of the approval
The purpose of the variation is to add four regulated persons (as set out in the instrument of variation) to the Approval.
The 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 with:
- a maximum five per cent biodiesel content (B5) containing a minimum derived cetane number of 46 and a maximum density of 852 kg/m3; and
- more than five per cent but no greater than 20 per cent biodiesel content (B20) containing a minimum derived cetane number of 46 and a maximum density of 860 kg/m3,
will be taken to comply with the Diesel Determination.
The approval 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: Most diesel supplies in Australia are capable of producing blended product that meets the minimum 51 DCN. Mobil indicates that it expects that most of its proposed supply will meet the maximum density and minimum cetane requirements in the Diesel Determination. Therefore the variation in cetane and density of the fuel subject to Mobil’s application for a year period is not expected to cause significant environmental impacts.
b) The protection of occupational and public health and safety: It is unlikely that occupational and public health and safety will be significantly affected by a variation in biodiesel, cetane and density parameters for the fuels subject to Mobil’s application.
c) The interests of consumers: Although variations in biodiesel, cetane level and density can affect engine performance, on the basis of current experience, the addition of extra regulated persons to the approval is not expected to have significant impacts on consumers.
d) The impact on economic and regional development: The Approval is expected to allow the development of markets. Four companies will benefit from their listing as Mobil Oil Australia Pty Ltd additional regulated persons. This may help support employment in regional areas of Australia.
Andrew McNee
Assistant Secretary
24 July 2013
Overview
The Fuel Quality Standards Act 2000 was enacted to ensure that the quality of fuel sold in Australia meets specified standards that protect the environment, public health, and consumer interests. This legislation was introduced to address the need for consistent and high-quality fuel standards across the country. The Act was passed by the Parliament of Australia with the objective of safeguarding environmental and public health by setting stringent standards for fuel quality and regulating the blending and sale of fuel. The Act empowers the Minister to grant approvals for variations to fuel standards, subject to certain conditions, to accommodate the interests of stakeholders while maintaining the overarching goals of environmental protection and public safety. The decision to vary an approval granted under the Act, such as the one concerning Mobil Oil Australia Pty Ltd, is made to ensure that the fuel supplied meets the necessary standards while also considering regional economic and employment benefits.
Scope and Application
The Fuel Quality Standards Act 2000 applies to entities that are approved under the Act, which in this case includes Mobil Oil Australia Pty Ltd, and the regulated persons added to the approval. The Act concerns the standards for fuel quality in Australia, specifically in relation to automotive diesel, and provides for the variation of these standards under certain conditions. The geographic reach of the Act is national, applying across Australia. The Act allows for the Minister to approve variations to the fuel standards as stipulated in the Diesel Determination, subject to certain conditions that aim to protect the environment, public and occupational health and safety, consumer interests, and economic and regional development. The approval is subject to conditions outlined in the Act and additional terms in the approval instrument. The variation made under section 17E of the Act extends the approval to include additional regulated persons, allowing them to supply automotive diesel that meets the specified biodiesel, cetane, and density requirements, until 24 May 2014. The Act does not specify exclusions, but the approval itself may include specific exemptions or limitations through its conditions.
Key Provisions
The key operative sections of the Fuel Quality Standards Act 2000 (the Act) in this context are sections 13 and 17E. Section 13 permits the Minister to approve certain variations to fuel standards, while section 17E allows the Minister to vary those approvals. In this case, the Assistant Secretary, Environment Protection Branch, Department of Sustainability, Environment, Water, Population and Communities, acting as the Minister's delegate, has exercised the power under section 17E to vary an existing approval granted to Mobil Oil Australia Pty Ltd under section 13 (subsection 17E(1)). The variation permits the addition of four regulated persons to the approval, allowing them to produce and supply automotive diesel that meets specific biodiesel content, cetane number, and density requirements (subsection 17E(2)).
The obligations imposed on Mobil Oil Australia Pty Ltd and the four regulated persons added to the approval include compliance with the varied fuel standards for automotive diesel as outlined in the Fuel Standard (Automotive Diesel) Determination 2001 (the Diesel Determination). The varied approval allows for the production and supply of diesel with a maximum five per cent biodiesel content (B5) containing a minimum derived cetane number of 46 and a maximum density of 852 kg/m3, and diesel with more than five per cent but no greater than 20 per cent biodiesel content (B20) containing a minimum derived cetane number of 46 and a maximum density of 860 kg/m3 (subsection 17E(3)). These obligations are subject to the conditions set out in Annexure 2 to the approval instrument and in section 17 of the Act.
Breach of the obligations and conditions outlined in the varied approval may result in legal consequences. Under section 18 of the Act, any person who contravenes an approval or any condition or requirement imposed by the approval may be liable for an offence. For individuals, the maximum penalty is 500 penalty units or a fine of up to $55,000, or both, while for bodies corporate, the maximum penalty is 2,500 penalty units or a fine of up to $275,000, or both (subsection 18(2)). Additionally, under section 19, any person who is found guilty of an offence under the Act may also be liable for civil penalties, including compensation for loss or damage caused by the contravention (subsection 19(1)).