ASSISTANT SECRETARY, ASSESSMENTS (NSW, ACT) AND FUEL BRANCH
DEPARTMENT OF THE ENVIRONMENT AND ENERGY
NOTICE UNDER SECTION 17D OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION TO VARY APPROVALS GRANTED UNDER SECTION 13
OF THAT ACT
I, Kim Farrant, Assistant Secretary, Assessments (NSW, ACT) and Fuel Branch, delegate of the Minister for the Environment and Energy, provide the following information concerning my decision to vary a set of approvals granted under section 13 of the Fuel Quality Standards Act 2000.
Name of approval holders
- Viva Energy Australia Pty Ltd (formerly The Shell Company of Australia Limited),
granted on 11 October 2011 - Mobil Oil Australia Pty Ltd, granted on 24 May 2012
- Caltex Australia Petroleum Pty Ltd, granted on 24 May 2012
- BP Australia Pty Ltd, granted on 9 September 2014.
Details of the variation
The listed approvals were granted to vary the Fuel Standard (Automotive Diesel) Determination 2001 to permit the supply of diesel biodiesel blends as specified in the original grants of approval or subsequent variations.
Pursuant to section 17D of the Act, the period of operation of each approval listed has been extended until 30 June 2019, or until both a revised diesel standard and a B20 diesel biodiesel standard have been put in place, whichever occurs first.
Period of operation
This variation comes into force on the date of signing and remains in force for each approval listed until 30 June 2019, or until both a revised diesel standard and a B20 diesel biodiesel standard have been put in place, whichever occurs first.
Summary of reasons for the variation
Having consulted with the Fuel Standards Consultative Committee as required by section 17D(3) of the Act, I grant the variation to each listed 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 up to 20 per cent biodiesel 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
As required under the original conditions of approval, the diesel biodiesel blends may only be supplied under contract to commercial users and not at forecourts. Fuel dispensers must also be clearly labelled to advise consumers that the diesel contains biodiesel to address any potential warranty issues.
d) The impact on economic and regional development
As the level of biodiesel has been capped at five per cent in the diesel standard and in the absence of a B20 diesel biodiesel standard, industry cannot legally supply blends containing higher than five per cent biodiesel. This results in a barrier to the development of an Australian alternative fuels market. If the extensions to the approvals are not granted, the restriction of blend levels could have a negative effect on the development of the Australian biodiesel industry.
The variation is granted subject to the conditions specified in section 17 of the Act.
Kim Farrant
Assistant Secretary, Assessments (NSW, ACT) and Fuel Branch
15 June 2017
Overview
The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to ensure that fuel sold within Australia meets certain quality standards. The Act was introduced to address the need for regulating fuel quality to protect the environment, public health, and safety, while also considering the interests of consumers and the economic development of the biodiesel industry. The Act provides for the approval of fuel standards and the variation of such approvals to adapt to changing circumstances or new information. In this context, the Assistant Secretary for Assessments (NSW, ACT) and Fuel Branch of the Department of the Environment and Energy has varied the approvals granted to certain companies to extend the period of operation of their approvals for supplying diesel biodiesel blends, in line with the objectives of the Act. This decision was made to mitigate the impact on the biodiesel industry and to ensure that the supply of biodiesel blends continues to be regulated in a manner that balances environmental protection with economic and regional development.
Scope and Application
The notice issued under section 17D of the Fuel Quality Standards Act 2000 pertains to the decision to vary approvals granted under section 13 of that Act. The approvals in question were granted to Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, and BP Australia Pty Ltd, allowing them to supply diesel biodiesel blends. The variation extends the period of these approvals until 30 June 2019 or until both a revised diesel standard and a B20 diesel biodiesel standard have been established, whichever occurs first. This decision applies specifically to these companies and their operations in relation to the supply of diesel biodiesel blends. The geographic reach of the Act is limited to the Commonwealth jurisdiction, specifically within New South Wales and the Australian Capital Territory as overseen by the Department of the Environment and Energy. The variation is subject to the conditions outlined in section 17 of the Act and is intended to balance environmental protection, public health and safety, consumer interests, and economic and regional development.
Key Provisions
The primary sections of the notice under the Fuel Quality Standards Act 2000 (Cth) include section 13, which allows for the approval of certain fuel standards, and section 17D, which provides the mechanism for varying those approvals. This notice (sections 1, 2, and 3) details the decision to vary existing approvals granted to Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, and BP Australia Pty Ltd to extend the period of operation for their supply of diesel biodiesel blends. This extension is effective until 30 June 2019 or until both a revised diesel standard and a B20 diesel biodiesel standard are implemented, whichever happens first (section 4). The variation comes into force immediately upon signing and remains in effect until one of the specified dates (section 5).
The obligations and requirements imposed on the parties by this notice include adhering to the conditions under which the original approvals were granted. Specifically, the supply of diesel biodiesel blends must only occur under contract to commercial users, not at forecourts, and must be clearly labelled to inform consumers of the biodiesel content to mitigate any warranty concerns (section 6(a) and (c)). The approval holders must also ensure that their operations comply with environmental standards, occupational health and safety regulations, and consumer protection laws. Additionally, the notice mandates consultation with the Fuel Standards Consultative Committee as stipulated by section 17D(3) of the Act (section 6(a)).
Failure to comply with the provisions of this notice may lead to civil or criminal consequences. While the notice does not explicitly state the penalties for non-compliance, breaches of the Fuel Quality Standards Act 2000 can result in substantial fines and potential criminal charges. Under section 40 of the Act, individuals and corporations found guilty of non-compliance could face fines up to $66,000 for individuals and $330,000 for corporations, as well as imprisonment for up to two years. Furthermore, ongoing non-compliance could lead to further enforcement actions, including the revocation of approvals and additional legal proceedings.