THE HON ANGUS TAYLOR
MINISTER FOR ENERGY AND EMISSIONS REDUCTION
NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION UNDER SECTION 13 OF THAT ACT FOR AN APPROVAL FOR A VARIATION OF THE FUEL QUALITY STANDARDS (AUTOMOTIVE DIESEL) DETERMINATION 2019
I, Angus Taylor, Minister for Energy and Emissions Reduction, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).
Name of approval holder
BP Australia Pty Ltd
Viva Energy Australia Pty Ltd
Period of operation
The period of operation of the approval is from 28 May 2020 until 28 May 2021.
Details of the approval
The approval varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination) so that fuel with a minimum flash point of 60.5 degrees Celsius will be taken to comply with the relevant parameter specified in the Diesel Determination in respect of the supply of automotive diesel fuel.
The approval applies to diesel supplied by the approval holder and the regulated persons specified in Annexure 1 of this approval. This approval is granted subject to the conditions specified in section 17 of the Act and in Annexure 2 of the approval instrument.
Summary of reasons for the approval
I grant the approval as provided for in section 15 of the Act for the following reasons:
(a) The protection of the environment
The diesel fuel flash point parameter is not subject to environmental regulations and is specified in the Fuel Quality Standards (Automotive Diesel) Determination 2019 for safety and handling purposes. Allowing diesel with a lower flash point (of one degree Celsius) to be supplied for use in Australia is not expected to impact on the environment. There is no impact of flash point on auto-ignition temperature or other combustion characteristics that may affect vehicle or emissions performance.
(b) The protection of occupational and public health and safety
The proposed reduction of flash point from 61.5 degrees Celsius to 60.5 degrees Celsius is not considered to be significant and does not change the Dangerous Goods Classification or the required health and safety handling procedures, including transport. The reduction may require a change to the hazard identification number of the fuel in those states or territories that require flash point identification on storage labelling.
(c) The interests of consumers
The flash point of fuels is not expected to adversely impact on the interests of consumers. The flash point parameter does not have a direct correlation with the vehicle auto-ignition temperature or other combustion characteristics that may affect engine performance. Reducing the flash point by one degree Celsius is not expected to provide any negative impact on vehicle emissions, fuel consumption performance, operability or durability.
(d) The impact on economic and regional development
The lower flash point will allow for the improved utilisation of each barrel of petroleum and cost competitiveness, enabling the Applicants to maintain operations and supply of other fuels during this period of reduced demand for jet fuel. Both refineries’ operations generate employment opportunities and revenue to their local regions.
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Angus Taylor
Minister for Energy and Emissions Reduction
Overview
The Fuel Quality Standards Act 2000 was enacted by the Commonwealth Parliament to regulate the quality of fuel supplied in Australia, with the aim of protecting the environment, public health and safety, and the interests of consumers. In 2020, the Minister for Energy and Emissions Reduction, Angus Taylor, granted an approval under section 13 of the Act for a variation of the fuel standard for automotive diesel, allowing a reduction in the minimum flash point from 61.5 degrees Celsius to 60.5 degrees Celsius for a period of one year. The decision was based on the fact that the reduction was not expected to impact the environment, public health and safety, consumer interests, or economic and regional development. The approval was granted subject to certain conditions and applied to diesel supplied by BP Australia Pty Ltd and Viva Energy Australia Pty Ltd and their regulated persons.
Scope and Application
The Fuel Quality Standards Act 2000 applies to various entities, including BP Australia Pty Ltd and Viva Energy Australia Pty Ltd, as evidenced by the approval granted under section 13 of the Act to these companies. This Act regulates the quality of fuel, specifically automotive diesel, to ensure safety and handling standards are met across Australia. The approval granted to BP Australia Pty Ltd and Viva Energy Australia Pty Ltd allows for a variation in the fuel standard for diesel, reducing the minimum flash point from 61.5 degrees Celsius to 60.5 degrees Celsius for the period between 28 May 2020 and 28 May 2021. This approval is limited to the supply of diesel by the companies and the regulated persons specified in Annexure 1 of the approval instrument and is subject to the conditions outlined in section 17 of the Act and Annexure 2 of the approval. The decision to grant the approval considers the protection of the environment, occupational and public health and safety, the interests of consumers, and the impact on economic and regional development, with a particular focus on maintaining operations and supply during periods of reduced demand.
Key Provisions
The key provisions of the notice under section 17A of the Fuel Quality Standards Act 2000 concern a decision made by the Minister for Energy and Emissions Reduction, Angus Taylor, to approve a variation of the fuel quality standards for automotive diesel (section 13 of the Act). This approval, which was granted to BP Australia Pty Ltd and Viva Energy Australia Pty Ltd, modifies the minimum flash point of diesel fuel from 61.5 degrees Celsius to 60.5 degrees Celsius for the period between 28 May 2020 and 28 May 2021 (section 17A(1)). The approval is detailed in the Diesel Determination 2019, and it applies to diesel supplied by the approval holders and the regulated persons specified in Annexure 1 of the approval. The approval is subject to the conditions outlined in section 17 of the Act and in Annexure 2 of the approval instrument.
The obligations imposed by this Act on the parties involved include ensuring that the modified diesel fuel complies with the specified parameter of 60.5 degrees Celsius flash point and adhering to the conditions and requirements outlined in Annexure 2. The approval holders, BP Australia Pty Ltd and Viva Energy Australia Pty Ltd, must ensure that the diesel supplied meets the new standards and that all associated health and safety handling procedures are maintained. They must also ensure that the reduced flash point does not negatively impact the environment, public health, safety, or the interests of consumers.
There are no explicit offences, penalties, or consequences for breach mentioned in the text. However, the Act likely includes provisions for enforcement and compliance, which could result in civil or criminal penalties for non-compliance with the approved conditions. Given the nature of the Act and similar legislation, penalties for breaches could include fines, revocation of approval, or other regulatory actions as prescribed by the Act. The maximum penalties would depend on the specific provisions of the Fuel Quality Standards Act 2000 and related regulations.