Notice of Decisions to Vary Approvals under the Fuel Quality Standards Act 2000 to Mobil Oil, Caltex Australia and Shell Company

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel supplied in Australia, ensuring environmental standards are met and fuel suppliers operate within set parameters. This legislation was introduced to address the need for maintaining high-quality fuel standards that protect both the environment and consumer health. The Act provides the framework for setting fuel quality standards and allows for approvals of certain fuel blends that meet specified criteria. The Fuel Quality Standards Act 2000 is overseen by the Australian Parliament, with the objective of ensuring that fuel sold in Australia meets the required quality standards, thereby minimising environmental impact and ensuring consumer safety. The decision to vary the approvals under this Act, as demonstrated in the 2014 gazette, is aimed at facilitating the supply of biodiesel blends that comply with the environmental standards while supporting the growth of the biodiesel industry in Australia.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of fuel within Australia, specifically those approved under section 13 of the Act. The Act regulates the quality of fuel supplied to ensure it meets specified standards, particularly for automotive diesel. The Act's jurisdiction is Commonwealth-wide, meaning it applies across all states and territories in Australia. The notice issued under section 17A of the Act concerns the variation of approvals granted to specific companies, including Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, and The Shell Company of Australia Limited. These variations pertain to the biodiesel content in automotive diesel, allowing the suppliers to continue offering diesel blends containing up to five per cent biodiesel content (B5) and more than five per cent but no greater than twenty per cent biodiesel content (B20). The variations are subject to certain conditions, including minimum derived cetane numbers and maximum densities, and are effective from the date of approval until 30 June 2016. The decision to vary these approvals aims to support the biodiesel industry's development and ensure continued supply of biodiesel blends to the market.

Key Provisions

The main provisions of this legislation concern variations to the approvals granted under Section 13 of the Fuel Quality Standards Act 2000 (the Act) for three companies: Mobil Oil Australia Pty Ltd, Caltex Australia Petroleum Pty Ltd, and The Shell Company of Australia Limited (17A). These variations, decided under Section 17D of the Act, allow for the supply of diesel containing up to five per cent biodiesel content (B5) or more than five per cent but no greater than 20 per cent biodiesel content (B20), subject to certain conditions regarding cetane number and density (17A). The period of operation for these varied approvals is from the date of approval until 30 June 2016 (17A). The Act imposes specific obligations and requirements on these companies concerning the biodiesel content in the fuel they supply. These obligations include adhering to the conditions outlined in the original approval instruments and any subsequent variations, as well as the general requirements set out in Section 17 of the Act (17). These conditions are designed to ensure that the fuel supplied meets the necessary standards and that consumers are adequately informed about the biodiesel content in the diesel through labelling on fuel dispensers. Failure to comply with the provisions of the Act may result in civil or criminal consequences. The specific offences, penalties, and consequences for breach are not detailed in the document, but they generally involve legal action that could be taken against entities that do not adhere to the stipulated conditions. The maximum penalties for such breaches would be in line with the general provisions of the Act and applicable Australian legislation concerning environmental and fuel quality standards. It is important for the companies to ensure they meet all the regulatory requirements to avoid potential legal repercussions.