Notice of Decision to vary an approval to Neumann Petroleum Pty Ltd

Administered by Department of the Environment and Energy

Legislation au C2013G00884 In force Gazette

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ASSISTANT SECRETARY, ENVIRONMENT PROTECTION BRANCH, DEPARTMENT OF SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIES

NOTICE UNDER SECTION 17E OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION TO VARY AN APPROVAL GRANTED UNDER SECTION 13 OF THE FUEL QUALITY STANDARDS ACT 2000

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

On 26 February 2009, an approval was granted to Neumann Petroleum Pty Ltd (the Approval). The Approval varies the Fuel Standard (Automotive Diesel) Determination 2001 (the Diesel Determination) to permit the supply of diesel/biodiesel blend fuel as specified in the Approval. Neumann Petroleum Pty Ltd has since applied for a variation to the Approval to add two additional regulated persons under section 17E of the Act.

I have decided pursuant to section 17E of the Act to vary the Approval to add two additional regulated persons.

Period of operation

The Approval, as varied, comes into force on the date of signing and remains in force until

30 June 2014.

Details of the approval

The purpose of the variation is to add two regulated persons (as set out in the instrument of variation) to the Approval.

Background

I must have regard to the following matters set out in section 15(1) of the Act before deciding whether or not to vary the Approval:

(a) the protection of the environment

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

(c) the interests of consumers, and

(d) the impact on economic and regional development.

I may also have regard to any other matters I consider relevant.


Findings on material questions of fact

(a) The protection of the environment

The derived cetane number (DCN) of diesel containing biodiesel is a measure of the fuel’s ignition qualities and is set by the automotive diesel standard at a minimum of 51. Reducing the DCN can affect vehicle emissions, however, as the automotive diesel standard permits a minimum cetane index of 46 for mineral diesel it is not expected that the Approval, which varies the DCN to a minimum of 46, will cause significant environmental impacts. It is unlikely that the addition of two regulated persons to the Approval will significantly alter the amount of fuel to be supplied under the Approval, therefore no significant additional impact on the environment is expected.

 (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 DCN for the fuel subject to the Approval, therefore the addition of two regulated persons to the Approval is not expected to pose significant safety concerns.

 

(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. Two companies will benefit from their listing as Neumann Petroleum’s additional regulated persons. This may help support employment in regional areas of Western Australia.

Summary of reasons for recommendations

  1. The volume of fuel to be supplied under the Approval is unlikely to alter significantly by the addition of two regulated persons, therefore no significant additional impact on the environment is expected.
  2. The addition of two regulated persons to the Approval is not expected to pose significant safety concerns.
  3. The addition of two regulated persons to the Approval provides additional choice to consumers for the supply of this fuel.
  4. Neumann Petroleum contributes to regional economies in east coast of Australia.

Andrew McNee………….………...........................................................

Assistant Secretary, Environment Protection Branch, Department of Sustainability, Environment, Water, Population and Communities

1 June 2013

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to regulate the quality of fuel supplied in the country, ensuring it meets certain standards that protect the environment, occupational and public health, consumer interests, and regional economic development. This legislation allows the Minister to approve variations in fuel quality standards through the process outlined in section 17E, which was used in the case of Neumann Petroleum Pty Ltd's application to add additional regulated persons to their existing approval under section 13 of the Act. The policy objective of the Act is to safeguard environmental, health, and economic interests while ensuring the supply of quality fuel. In this specific instance, the decision to vary the approval was made considering the minimal expected environmental impact and safety concerns, as well as the potential benefits to regional economies and consumer choice.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the regulation of fuel quality standards in Australia, specifically targeting the protection of the environment, occupational and public health and safety, the interests of consumers, and economic and regional development. This Act grants the Minister the authority to approve variations to fuel quality standards and mandates considerations around environmental protection, public health and safety, consumer interests, and economic impacts before any variations are made. The Act's jurisdictional reach extends across the Commonwealth of Australia, impacting all entities involved in the supply of fuel within its territories. Notably, the Act does not specify exclusions or thresholds for its application but allows for detailed regulation through subordinate instruments such as approvals and variations, which can be extended or restricted by the Minister as deemed necessary. The decision-making process for approving such variations, as evidenced by the recent decision to add two additional regulated persons to an existing approval, is thorough and considers the cumulative effects on the environment, health and safety, consumer interests, and economic development.

Key Provisions

The primary operative sections of the Fuel Quality Standards Act 2000 (the Act) referenced in the notice are sections 13, 15, and 17E. Section 13 pertains to the granting of approvals for the supply of fuel, while section 15 outlines the considerations the delegate must take into account when deciding whether to vary such approvals. Section 17E allows for the variation of an approval, including the addition of regulated persons. In this case, the decision under section 17E is to add two additional regulated persons to the approval granted to Neumann Petroleum Pty Ltd (paragraph 3). The approval, as varied, comes into force on the date of signing and remains in effect until 30 June 2014 (paragraph 4). The purpose of the variation is to add two regulated persons to the approval (paragraph 5). The Act imposes several obligations and requirements on parties governed by it. Firstly, the delegate must consider specific matters before deciding whether to vary an approval. These include the protection of the environment (section 15(1)(a)), the protection of occupational and public health and safety (section 15(1)(b)), the interests of consumers (section 15(1)(c)), and the impact on economic and regional development (section 15(1)(d)). The delegate may also consider any other relevant matters. The delegate must base their decision on findings regarding these considerations, which are detailed in the notice (paragraphs 8-11). Additionally, the approval must specify the terms under which the fuel may be supplied, and the varied approval must come into force on the date of signing and remain in effect until a specified end date (paragraph 4). The Act does not specify any offences, penalties, or civil/criminal consequences for breach of its provisions in the provided notice. However, the failure to comply with the terms of an approval or a variation of an approval could potentially lead to enforcement actions by relevant authorities. These actions might include administrative penalties, fines, or legal proceedings for non-compliance. The specific consequences would depend on the nature and severity of the breach and would be determined under the relevant provisions of the Act or other applicable laws (paragraphs 12-14).

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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.