Notice of decision to vary approvals granted under the Fuel Quality Standards Act 2000

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au C2018G00509 In force Gazette

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A/G ASSISTANT SECRETARY, ENERGY SECURITY 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, Fiona Beynon, A/g Assistant Secretary, Energy Security 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

  • The National Biofuels Group Pty Ltd
  • Biodiesel Producers Ltd
  • Neumann Petroleum Pty Ltd
  • The Trustee for Rojok Unit Trust, trading as Macquarie Oil Company
  • Freedom Fuels Terminalling Pty Ltd
  • The Biodiesel Station Pty Ltd
  • Hahn Group Pty Ltd, trading as Hahn Fuels (formerly Future Fuels Australia Pty Ltd)
  • Australian Renewable Fuels Adelaide Pty Ltd
  • Australian Renewable Fuels Picton Pty Ltd
  • Eagle Fuels Pty Ltd
  • Mogas Regional Pty Ltd
  • Logicoil Pty Ltd (formerly Pre-Logic Pty Ltd)
  •  ProGreen Biofuels Pty Ltd
  • The Trustee for A G & P F McWhirter Family Trust, trading as Great Southern Fuel Supplies (formerly Eastern Great Southern Petroleum)
  • Central State Fuels Pty Ltd
  • Kifuel Pty Ltd
  • The Trustee for Eco Tech Biodiesel Unit Trust, trading as Consolidated Biodiesel Pty Ltd
  • Bioworks Australia Pty Ltd
  • Glencore Singapore Pte Ltd (now operating under Glencore Australia Oil Pty Limited)
  • Ashoil Pty Ltd
  • Petro National Pty Ltd


Details of the variation

The listed approvals vary the Fuel Standard (Automotive Diesel) Determination 2001 to permit the supply of diesel containing more than five per cent and up to 20 per cent biodiesel.

Pursuant to section 17D of the Act, the period of operation of each approval listed has been extended until 31 December 2019, or until a B20 diesel-biodiesel standard has 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 31 December 2019, or until a B20 diesel-biodiesel standard has 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 24A of the Act, I grant the variation to each listed approval for the following reasons as provided for in section 15(1) of the Act:

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, fuel dispensers will be clearly labelled to advise consumers that the diesel contains biodiesel. Any potential warranty issues for vehicles will, therefore, be addressed.

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.
 

This variation is granted subject to the conditions specified in section 17 of the Act.

Fiona Beynon
A/g Assistant Secretary, Energy Security Branch,
Department of the Environment and Energy
12 June 2018

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to ensure the quality of fuel supplied in Australia and to protect the environment, public health, and safety. The Act aimed to fill a gap in the regulation of fuel quality standards, providing a framework for the approval of fuel blends and quality standards. The Act was enacted to address concerns about the environmental impact of fuel emissions and to promote the use of alternative fuels, including biodiesel. The Fuel Quality Standards Act 2000 provides for the establishment of fuel quality standards and the approval of fuel blends that meet those standards. The Act also provides for the variation of approvals and the imposition of conditions on approvals to ensure that fuel supplied in Australia meets the required standards. The policy objective of the Act is to protect the environment, public health, and safety while promoting the development of an alternative fuels market in Australia.

Scope and Application

The Fuel Quality Standards Act 2000 applies to various entities, including companies and trusts, engaged in the production, supply, and distribution of fuel in Australia. This Act pertains specifically to the approvals granted under section 13, which involve the supply of diesel containing up to 20 per cent biodiesel. The approvals granted and subsequently varied under this Act include companies such as the National Biofuels Group Pty Ltd, Biodiesel Producers Ltd, and others involved in biodiesel production and distribution. The geographic reach of this legislation is national, as it is a Commonwealth Act, and thus it applies across all states and territories in Australia. The variation of approvals extends the period of operation until 31 December 2019 or until a B20 diesel-biodiesel standard is implemented, whichever occurs first. The decision to vary these approvals is based on environmental, health, consumer, and economic considerations, ensuring that the supply of biodiesel blends up to 20 per cent complies with necessary standards and does not negatively impact public health and safety or economic development.

Key Provisions

The main operative sections of the notice (sections 13, 15, 17D and 24A) allow the Minister for the Environment and Energy, through the Assistant Secretary, to vary the approvals granted to specified entities under the Fuel Quality Standards Act 2000 (the Act). These entities are authorised to supply diesel containing biodiesel at levels higher than previously approved, specifically up to 20 per cent. The variation, as stated in section 17D, extends the operational period of these approvals until 31 December 2019, or until a B20 diesel-biodiesel standard is implemented, whichever comes first. The Act imposes certain obligations on the approval holders, including compliance with the conditions specified in section 17. These conditions may include requirements such as the proper labelling of fuel dispensers to inform consumers about the biodiesel content. The entities must also ensure that their operations adhere to environmental, occupational health and safety, and consumer protection standards, as outlined in section 15 of the Act. There are potential civil and criminal consequences for breach of the provisions of the Act. For example, failure to comply with the conditions of the approvals or the requirements for labelling could result in enforcement actions against the approval holders. The specific penalties are not detailed in the notice, but under the general provisions of the Act, breaches could lead to fines and other legal consequences. The maximum penalties for serious breaches could potentially extend to significant financial penalties and, in some cases, imprisonment, depending on the severity and intent of the breach.

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Area of Law
Environmental Law
Instrument
Gazette Notice
Concepts
Reporting & Disclosure Obligations
Regulatory Standards
Consultation Requirements
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Fuel Quality Standards Act 2000

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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.