ACTING 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, Tim Wyndham, Acting Assistant Secretary, Energy Security Branch, delegate of the Minister for the Environment, 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 September 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 September 2019.
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.
Tim Wyndham
Acting Assistant Secretary, Energy Security Branch
26 June 2019
Overview
The Fuel Quality Standards Act 2000 was enacted by the Australian Parliament to ensure that fuels supplied in Australia meet specified quality standards. This Act was introduced to address the need for consistent and regulated fuel quality across the nation, aimed at protecting the environment, public health, and economic interests. One of the key functions of the Act is to grant and manage approvals for deviations from the established fuel standards, ensuring that any variations still align with broader policy objectives. The Act allows the Minister for the Environment to delegate powers to approve or vary fuel quality standards, as demonstrated in the case of the 2019 variation concerning biodiesel blends in diesel fuel. This decision reflects the ongoing balance between fostering economic development in the alternative fuels sector and safeguarding public health and environmental standards.
Scope and Application
The Fuel Quality Standards Act 2000 governs the regulation of fuel quality standards in Australia, including approvals for the supply of fuel and fuel blends. This Act applies to entities that have been granted approval to supply fuel or fuel blends, such as Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, and BP Australia Pty Ltd, as listed in the notice. The Act pertains to the supply of diesel biodiesel blends and the conditions under which such blends can be supplied, including restrictions on the biodiesel content and mandatory labelling for consumers. The decision to vary the approvals under this Act extends the operational period of these approvals until 30 September 2019 or until a revised diesel standard and a B20 diesel biodiesel standard are in place, whichever occurs first. The variation was made to address environmental, health, consumer, and economic factors, and it is subject to the conditions specified in the Act. The geographic reach of the Act is national, applying across Australia, and its application is further detailed through subordinate instruments and conditions outlined in the Act.
Key Provisions
The Fuel Quality Standards Act 2000 (the "Act") provides for the regulation of fuel quality standards in Australia, including the granting of approvals for the supply of fuels that do not comply with prescribed standards. Section 13 of the Act allows the Minister to grant such approvals, while section 17D permits the variation of these approvals. In this context, section 17D(1) requires the Minister to consult with the Fuel Standards Consultative Committee before varying an approval. The decision to vary the listed approvals (sections 17D(2) and (3)) has been made by Tim Wyndham, the Acting Assistant Secretary, Energy Security Branch, as the delegate of the Minister for the Environment. The variation extends the period of operation of each approval until 30 September 2019, or until both a revised diesel standard and a B20 diesel biodiesel standard have been put in place, whichever occurs first (section 17D(4)). This variation is subject to the conditions specified in section 17 of the Act.
Under the Act, the obligations imposed on the approval holders, such as Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, and BP Australia Pty Ltd, include adhering to the conditions specified in their approvals and ensuring that the supply of diesel biodiesel blends complies with the varied terms. This includes maintaining compliance with the environmental, occupational, and public health and safety standards, as well as ensuring that consumers are properly informed about the composition of the fuel they are purchasing. The approval holders must also ensure that the supply of biodiesel blends is limited to commercial users only and that fuel dispensers are clearly labelled to indicate the presence of biodiesel.
Failure to comply with the provisions of the Act or the conditions of the approvals may result in various civil or criminal consequences. The Act does not specify particular offences or penalties for breaches related to the variation of approvals; however, general provisions for breaches of the Act may apply. Such breaches could potentially result in fines or other penalties as determined by a court. Additionally, any actions that contravene environmental protection laws or occupational health and safety regulations may attract separate penalties under those specific Acts. The maximum penalties for breaches of fuel quality standards are not explicitly stated in the Act but may be determined by the relevant courts based on the nature and severity of the breach.