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, Rick Miles, A/g Assistant Secretary, Energy Security Branch, delegate of the Minister for Energy and Emissions Reduction, 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 Quality Standards (Automotive Diesel) Determination 2019 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 2020, 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 2020, 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.
Rick Miles
A/g Assistant Secretary, Energy Security Branch,
Department of the Environment and Energy
18 December 2019
Overview
The Fuel Quality Standards Act 2000 was enacted to establish and maintain standards for the quality of fuel supplied in Australia, with the objective of protecting the environment and the health and safety of the public. The Act provides a framework for setting fuel quality standards and the approval process for deviations from these standards. This legislation was introduced to address the need for regulating fuel quality to ensure that it meets certain environmental and safety standards, thereby protecting both the environment and public health. The Fuel Quality Standards Act 2000 is administered by the Australian Parliament and the policy objective is to ensure that fuel supplied in Australia meets high quality standards that protect the environment and public health while also supporting the development of alternative fuels in the country.
Scope and Application
The decision to vary the approvals granted under section 13 of the Fuel Quality Standards Act 2000 applies to several entities, including The National Biofuels Group Pty Ltd, Biodiesel Producers Ltd, Neumann Petroleum Pty Ltd, and others listed in the notice. These entities are involved in the production and supply of biodiesel and have been granted specific approvals to supply diesel containing biodiesel. The variation extends the period of operation for these approvals, allowing the supply of diesel with more than five per cent and up to 20 per cent biodiesel, until 31 December 2020 or until a B20 diesel-biodiesel standard is implemented, whichever occurs first. The geographic reach of this variation is under the Commonwealth jurisdiction, administered by the Department of the Environment and Energy. There are no stated exclusions or exemptions in this particular notice, although the variation is subject to the conditions specified in section 17 of the Act. Subordinate instruments may further extend or restrict the application of this variation.
Key Provisions
The Fuel Quality Standards Act 2000 (the "Act") outlines provisions for setting and enforcing fuel quality standards in Australia, including approvals for the supply of fuels that meet certain criteria. Section 13 of the Act allows for the granting of approvals to supply fuels that do not comply with the fuel quality standards but are deemed acceptable under specific conditions. Section 17D of the Act empowers the Assistant Secretary, Energy Security Branch, Department of the Environment and Energy, as a delegate of the Minister, to vary these approvals. In this case, the Assistant Secretary has exercised this power to vary a series of approvals granted to multiple entities, including The National Biofuels Group Pty Ltd, Biodiesel Producers Ltd, and others, to permit the supply of diesel containing more than five per cent and up to 20 per cent biodiesel.
The obligations imposed on the parties covered by this variation include ensuring that any diesel supplied under these approvals contains no more than 20 per cent biodiesel and that fuel dispensers are clearly labelled to inform consumers of the biodiesel content. This labelling requirement is critical to protect consumers and address any potential warranty issues related to the biodiesel content. Furthermore, the parties must comply with any additional conditions specified in section 17 of the Act, which may include reporting obligations or other measures to monitor compliance with the varied approvals.
Breaches of the varied approvals or the conditions imposed by section 17 of the Act may result in significant legal consequences. The Act does not explicitly state penalties for non-compliance with the varied approvals; however, it is reasonable to infer that penalties could include fines, cancellation of the approval, or other enforcement actions under the general powers of the Minister. Additionally, any failure to comply with labelling requirements or other obligations could result in civil liability for any resulting damages or harm. It is essential for the parties to adhere strictly to the terms of the varied approvals to avoid these potential consequences.