Notice of Decision to Vary an Approval under the Fuel Quality Standards Act 2000 for BP Australia Pty Ltd

Overview

The Fuel Quality Standards Act 2000, enacted by the Australian Parliament, was introduced to ensure the quality of fuel sold in Australia meets certain standards, thereby protecting the environment and public health. This Act empowers the Minister for the Environment to set fuel quality standards and to approve variations to those standards when necessary. The policy objective underpinning the Act is to safeguard the environment, occupational health and safety, and the interests of consumers by maintaining high-quality fuel standards. In the case of the decision under section 13 of the Act, the Assistant Secretary of the Environment Protection Branch granted approval for BP Australia Pty Ltd to supply diesel containing up to 20 per cent biodiesel content, provided certain conditions are met. This decision aims to balance environmental protection with potential economic benefits for the biodiesel industry, while ensuring that consumers are adequately informed about the changes in fuel quality parameters.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply and use of fuel within Australia. This Act allows for the establishment and variation of fuel quality standards, with specific determinations such as the Fuel Standard (Automotive Diesel) Determination 2001 setting out the technical specifications for fuel quality. The Act applies to both Commonwealth and state jurisdictions, ensuring a consistent approach to fuel quality standards across the nation. The approval process under this Act involves the Minister for the Environment, or their delegate, who has the authority to grant or vary approvals for fuel standards, as seen in the notice provided by the Assistant Secretary of the Environment Protection Branch. This approval mechanism is designed to balance environmental protection, consumer interests, and economic considerations. The approval granted to BP Australia Pty Ltd, allowing for the supply of diesel with specified biodiesel content and cetane number parameters, is subject to specific conditions aimed at safeguarding environmental and health standards while promoting economic benefits. The Act also extends its application through subordinate instruments such as determinations and approvals, thereby offering flexibility in responding to industry changes and innovations.

Key Provisions

The Fuel Quality Standards Act 2000, under section 17A, requires the publication of certain approvals related to fuel quality standards. This notice pertains to an approval granted under section 13 of the Act to BP Australia Pty Ltd for a variation of the Fuel Standard (Diesel) Determination 2001. The approval allows the supply of diesel containing up to five per cent biodiesel content (B5) with 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) with a minimum derived cetane number of 46 and a maximum density of 858 kg/m3 for annual volumes up to 2.2 GL (section 13). This approval is effective until 30 June 2016 and applies to fuel supplied by BP Australia Pty Ltd and regulated persons specified in Annexure 1 of the approval instrument. The obligations imposed on BP Australia Pty Ltd and the regulated persons include adherence to the conditions outlined in Annexure 2 of the approval instrument and section 17 of the Act. These conditions may include requirements for monitoring and reporting on the environmental impact, consumer information obligations, and compliance with specific technical parameters for the biodiesel content, cetane number, and density of the diesel supplied. The approval also requires the regulated parties to ensure that any supplied fuel meets the specified standards and does not adversely affect the environment or public health. Breaches of the conditions set out in the approval may result in various consequences. The Act does not explicitly state the penalties for non-compliance, but violations of the Act or its regulations can lead to civil or criminal penalties. Civil penalties can include fines up to a certain amount as prescribed by the Act or regulations, while criminal penalties can include fines and/or imprisonment depending on the severity of the breach. The precise penalties for specific breaches are determined in accordance with the relevant provisions of the Act and any associated regulations.