FIRST ASSISTANT SECRETARY, ENVIRONMENT QUALITY DIVISION
DEPARTMENT OF THE ENVIRONMENT
NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING DECISIONS TO VARY APPROVALS GRANTED UNDER SECTION 13 OF THE FUEL QUALITY STANDARDS ACT 2000
I, Diana Wright, First Assistant Secretary, Environment Quality Division, delegate of the Minister for the Environment, provide the following information concerning my decision made pursuant to section 17D of the Fuel Quality Standards Act 2000 (the Act) to vary approvals granted under section 13 of the Act.
Name of approval holders
The National Biofuels Group Pty Ltd
Biodiesel Producers Ltd
Neumann Petroleum Pty Ltd
Smorgon Fuels Pty Ltd
Macquarie Oil Company
Freedom Fuels Terminalling Pty Ltd
The Biodiesel Station Pty Ltd
Hahn Environmental Services Pty Ltd (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
Pro Green Biofuels Pty Ltd
Eastern Great Southern Petroleum
Central State Fuels Pty Ltd
LogicOil Pty Ltd (formerly Pre-Logic Pty Ltd)
Kifuel Pty Ltd
Consolidated Biodiesel Pty Ltd acting as trustee for Eco Tech Biodiesel Unit Trust Bioworks Australia Pty Ltd
Glencore Singapore Pte Ltd
Ashoil Pty Ltd
Period of operation
The period of operation of the varied approvals is from the date of the approval until 30 June 2016.
Details of the approval
The approval varies the fuel standard for automotive diesel set out in the Fuel Standard (Automotive Diesel) Determination 2001 (Diesel Determination) to allow the supply of diesel containing biodiesel at levels of more than five per cent but not more than 20 per cent.
The approval applies to fuel supplied by each company and is subject to the original conditions set out in each original approval instrument and in section 17 of the Act.
Summary of reasons for the approval
- Biodiesel blends are already being supplied to the market and the variations to approvals are required to allow suppliers to continue supplying these blends to existing and potential customers.
- There could be a detrimental effect on the development of the Australian biodiesel industry if the variations to approvals are not granted.
- The approvals only relate to the variation of the biodiesel content in the Diesel Determination for diesel biodiesel blends containing above five per cent and up to 20 per cent biodiesel.
- The labelling condition will provide information for consumers about the biodiesel content in the diesel on fuel dispensers.
Diana Wright
First Assistant Secretary
Environment Quality Division
15 April 2014
Overview
The Fuel Quality Standards Act 2000 was enacted to establish and enforce standards for the quality of fuel sold in Australia, ensuring the protection of the environment and public health from the adverse effects of fuel contaminants. The Act was introduced to address the problem of fuel quality standards that did not sufficiently regulate the levels of certain contaminants in fuel, which could potentially harm the environment and public health. The policy objective of the Act is to safeguard Australia’s fuel supply by setting and enforcing standards that limit the presence of harmful substances in fuel, thereby reducing the environmental impact and health risks associated with fuel use. The Act is administered by the Australian Government and enforced by the Department of the Environment, which is responsible for overseeing compliance and granting necessary approvals for fuel quality standards.
Scope and Application
The Fuel Quality Standards Act 2000 applies to various entities engaged in the supply and production of fuel in Australia, specifically targeting the biodiesel content of automotive diesel. The act allows for approvals under section 13, which can be varied under section 17D by the Minister for the Environment. The approvals in question are held by multiple companies including The National Biofuels Group Pty Ltd, Biodiesel Producers Ltd, and others, and are effective until 30 June 2016. The variations permit these companies to supply diesel with biodiesel content exceeding five percent but not exceeding 20 percent. This change is made to ensure that the biodiesel industry continues to develop without disruption, and it requires compliance with the original conditions of the approvals and section 17 of the Act. The legislation has a Commonwealth reach, applying nationally across Australia. The act does not specify exclusions or exemptions within the scope of this particular notice, but broader provisions of the Act might include such details. The application and interpretation of the Act can be extended through subordinate instruments, such as determinations and regulations, which may further define the specific parameters and conditions of fuel quality standards.
Key Provisions
The main sections of the Fuel Quality Standards Act 2000 that are pertinent to this notice involve the grant and variation of approvals under sections 13 and 17D. Section 13 allows for the approval of fuel standards that deviate from those prescribed in the Act, while section 17D empowers the First Assistant Secretary to vary these approvals as necessary. In this case, the decision made under section 17D varies the approvals granted under section 13 for the supply of diesel containing biodiesel at levels between five and twenty per cent. The varied approvals are effective from their original dates of approval until 30 June 2016.
The Act imposes several obligations on the approval holders. Firstly, each company must adhere to the original conditions of their approval instruments and the requirements set out in section 17 of the Act. The approval holders are responsible for ensuring that their fuel meets the specified biodiesel content levels and complies with all other relevant conditions. Additionally, they must ensure that consumers are informed about the biodiesel content in the diesel they supply, which is to be indicated on fuel dispensers. This labelling requirement is crucial for consumer awareness and choice in the market.
Breaching the conditions of the approvals can have serious consequences. Under the Act, non-compliance with the fuel quality standards or the conditions of approval can lead to significant penalties. While the specific penalties are not detailed in this notice, the Act generally provides for both civil and criminal penalties for breaches, including fines and potential imprisonment. The exact penalties depend on the nature and severity of the breach, but they are designed to enforce compliance and maintain the integrity of the fuel quality standards.
In summary, the varied approvals under the Fuel Quality Standards Act 2000 allow certain companies to supply diesel with biodiesel content between five and twenty per cent, subject to specific conditions. These conditions include adherence to the original approval terms and ensuring consumer information is provided at fuel dispensers. Failure to comply with these obligations can result in penalties, underscoring the importance of adherence to the fuel quality standards.