Notice of decision to vary approvals granted under the Fuel Quality Standards Act 2000 for Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, The Shell Company of Australia Limited and BP Australia Pty Ltd

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to regulate the quality of fuels sold within the country, aiming to ensure that fuels meet certain standards to protect public health and the environment. This Act addresses the problem of ensuring that the fuels supplied in the Australian market meet minimum quality standards, thereby reducing pollution and improving air quality. The policy objective of the Act is to maintain and improve the quality of fuel sold in Australia, which is critical for both environmental protection and public health. In this context, the Act allows the Minister for the Environment to grant and vary approvals for the supply of fuels that meet specified standards. The legislative framework ensures that any changes to fuel quality standards are carefully considered to balance industry needs with environmental and health protections.

Scope and Application

The Fuel Quality Standards Act 2000, as amended and applied through notices such as the one issued by the First Assistant Secretary, applies to entities engaged in the supply of automotive diesel fuel within Australia. In this instance, the approval variations pertain specifically to Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, The Shell Company of Australia Limited, and BP Australia Pty Ltd. These companies are authorised to supply diesel fuel blended with biodiesel, within the specified biodiesel content limits and conditions. The geographic reach of the Act is nationwide, as it is a Commonwealth Act, thereby extending its influence across all states and territories in Australia. The approval variations extend from the date of the approval until 30 June 2017, and the companies must adhere to the original approval conditions and any subsequent variations or statutory requirements, such as those outlined in section 17 of the Act. The decision to vary the approvals aims to facilitate the continued supply of biodiesel blends to the market, supporting the biodiesel industry's development in Australia while ensuring compliance with fuel quality standards.

Key Provisions

The primary sections of the Fuel Quality Standards Act 2000 that are relevant to this notice are sections 13, 17A, and 17D. Section 13 allows the Minister for the Environment to grant approvals for fuel standards, while section 17A enables the Minister to make decisions to vary these approvals. The notice under section 17A informs that the First Assistant Secretary, Environment Standards Division, has exercised the power to vary the approvals granted under section 13. Section 17D provides the legal basis for the decision to vary the approvals. The varied approvals now allow the supply of diesel containing up to five percent biodiesel content (B5) and more than five percent but no greater than 20 percent biodiesel content (B20), subject to specific conditions. The obligations and requirements imposed by the Act on the parties include adherence to the varied fuel standards and compliance with the conditions set out in the original approval instruments or subsequent variations. The companies named in the notice, Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, The Shell Company of Australia Limited, and BP Australia Pty Ltd, must ensure that the biodiesel blends supplied meet the specified biodiesel content, cetane number, and density requirements. Furthermore, they must comply with any additional conditions outlined in the approval instruments and section 17 of the Act. These requirements are designed to maintain the quality and safety of the fuel supplied to consumers while supporting the biodiesel industry. The Fuel Quality Standards Act 2000 does not explicitly state the penalties for non-compliance with the varied approvals. However, the general provisions of the Act may apply, which include potential civil or criminal penalties for breaches. In the case of civil penalties, the Act provides for infringement notices that can result in fines. Criminal penalties can include imprisonment or fines, depending on the severity and frequency of the breach. The maximum penalties for infringement notices and criminal offences are determined by the relevant state or territory legislation, which may vary. It is essential for the companies to comply with the conditions to avoid any potential legal consequences.