ASSISTANT SECRETARY, ENVIRONMENT PROTECTION BRANCH,
DEPARTMENT OF THE ENVIRONMENT
NOTICE UNDER SECTION 17 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, delegate of the Minister for the Environment, provide the following information concerning my decision to vary an approval granted under section 13 of the Fuel Quality Standards Act 2000.
Name of approval holder
IOR Energy Pty Ltd (IOR).
Period of operation
From the date of the variation until 31 December 2016.
Details of the approval
The original approval varies the fuel standard for automotive diesel set out in the Fuel Standard (Automotive Diesel) Determination 2001 (the Diesel Determination) so that:
(a) automotive diesel containing a minimum density of 790 kg/m3 and a maximum sulphur content of 125 mg/kg will be taken to comply with the density and sulfur parameters specified in the Diesel Determination in respect of the supply of automotive diesel under contract to commercial users for use in underground mining applications until 31 December 2016; and
(b) automotive diesel containing a minimum density of 800 kg/m3 and a maximum sulfur content of 50 mg/kg will be taken to comply with the density and sulfur parameters specified in the Diesel Determination in respect of the supply of automotive diesel under contract to commercial users through IOR’s outlets until 31 December 2014.
It applies to diesel biodiesel blends supplied by the approval holder and specified regulated persons specified in Annexure 1 of the approval, and is granted subject to the conditions specified in section 17 of the Act and in Annexure 2 of this approval.
This variation extends the period of operation of part (b) of the approval until 31 December 2016.
This variation also amends condition 2(i) to read:
i) Automotive diesel supplied with a sulfur content no greater than 50 mg/kg and a minimum density of 800 kg/m3 is only supplied under contract to commercial users from IOR’s outlets within a radius of 300 km from the Eromanga Refinery or from the IOR Energy Pty Ltd outlet at Innamincka, South Australia.
The remaining conditions of approval as specified in the original approval are unaltered.
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
The diesel supplied by IOR to its commercial road users appears to be of a high environmental quality with low aromatics and high cetane. It seems to be a relatively clean fuel that would contribute to reducing some toxic emissions and the protection of the environment.
(b) The protection of occupational and public health and safety
High levels of sulfur in diesel increase emissions of particulates into the atmosphere. A number of studies have indicated that diesel particles are mutagenic and carriers of compounds which are suspected of contributing to the rise in cancer cases in city areas with a large proportion of diesel fuelled vehicles. Furthermore, In June 2012, the International Agency for Cancer Research classified Diesel Particulate Matter as a known human carcinogen (Group 1).
As the proposed coverage area of the supply of fuel to commercial road customers is remote areas of Queensland, South Australia and New South Wales, it is not expected that there will be any adverse impacts on occupational and public health and safety from the approval.
(c) The interests of consumers
The introduction of a 10 mg/kg sulfur limit for automotive diesel in January 2009 enabled introduction of ADR80/03 (Euro 5) emission standards for heavy vehicles. The use of diesel containing greater than 10 mg/kg sulfur in vehicles certified to ADR80/03 may affect vehicle warranties and is not recommended. Conditions that could be applied to an approval to mitigate impact on the interests of consumers include limiting sale of the product to contracted commercial purchasers and providing consumer information.
(d) The impact on economic and regional development
IOR refineries and plants provide employment opportunities for the local community in regional areas of Queensland, South Australia and New South Wales. Commercial industries also benefiting from IOR include cattle transporters, long haul freight operators, local Shire Councils, regional mining and pastoral companies.
Andrew McNee
Assistant Secretary
12 December 2014