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

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel in Australia, aiming to protect the environment, ensure public safety, and support economic and regional development. The Act provides a framework for establishing and enforcing fuel quality standards. Under the authority of this Act, the Minister for Energy and Emissions Reduction, Angus Taylor, has granted approvals for variations to the Fuel Quality Standards (Automotive Diesel) Determination 2019, allowing a temporary reduction in the minimum flash point of automotive diesel from 61.5 degrees Celsius to 60.5 degrees Celsius. These approvals, issued to Ampol Ltd and Viva Energy Australia Pty Ltd, are designed to enhance the utilisation and cost competitiveness of petroleum products during a period of reduced demand for jet fuel. The policy objective of these approvals is to ensure the continued operation and supply of fuels while maintaining safety and environmental standards. The decision to grant these approvals was made after consultation with the Fuel Standards Consultative Committee and a consideration of the criteria outlined in the Act, balancing the interests of environmental protection, public health and safety, consumer interests, and economic development.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of automotive diesel fuel within Australia. Specifically, the Act was invoked by the Minister for Energy and Emissions Reduction, Angus Taylor, to grant approvals to Ampol Ltd (formerly Caltex Australia Petroleum Pty Ltd) and Viva Energy Australia Pty Ltd to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019. This variation allows for the supply of automotive diesel fuel with a minimum flash point of 60.5 degrees Celsius, differing from the previous standard of 61.5 degrees Celsius. The approvals are in effect until 28 May 2022, subject to specific conditions such as reporting requirements on sulfur content, cetane index, and polycyclic aromatic hydrocarbon content. The decision to grant these approvals was made after considering environmental, occupational and public health, consumer interests, and economic and regional development factors, ensuring that the variation does not adversely affect the safety or performance of the diesel fuel supplied in Australia.

Key Provisions

Section 13 of the Fuel Quality Standards Act 2000 (the Act) pertains to the approval of variations to fuel quality standards, as specified in determinations under the Act. Section 13A(1) and (2) of the Act clarify that these approvals come into force on the date specified in the approval and remain in force for the period outlined. Section 17D(1) of the Act allows for the variation of the period of effect of these approvals. The Act also requires, pursuant to section 16(1)(a) and section 33(3) of the Acts Interpretation Act 1901, that approval grantees report on specified parameters to the Department of Industry, Science, Energy and Resources within a specified timeframe. Under the Act, the Minister for Energy and Emissions Reduction has the authority to approve variations to the fuel quality standards. Specifically, the Minister has granted approvals to Ampol Ltd and Viva Energy Australia Pty Ltd to vary the minimum flash point of automotive diesel fuel from 61.5 degrees Celsius to 60.5 degrees Celsius. These approvals are effective until 28 May 2022, but the reporting requirement for the specified parameters is due by 24 September 2021. The Minister has also consulted with the Fuel Standards Consultative Committee, as required by section 17D(3) of the Act, and considered the criteria in section 15 of the Act in making these decisions. The Act imposes obligations on the approval holders, Ampol Ltd and Viva Energy Australia Pty Ltd, to report specific parameters of each batch of diesel produced within a certain period. These parameters include sulfur content (mg/kg), cetane index, and polycyclic aromatic hydrocarbon content (percentage by mass). The reporting is to be submitted to the Department of Industry, Science, Energy and Resources by 24 September 2021, covering the period from 28 May 2021 to 28 August 2021 (inclusive). Failure to comply with these reporting obligations may have legal consequences, although the specific penalties for non-compliance are not outlined in the provided text. The Act does not explicitly detail the penalties or consequences for breaches of the approval conditions or reporting obligations. However, non-compliance with the Act or its regulations could potentially lead to legal action under general provisions of Australian law, which might include fines or other penalties. The exact nature and severity of these penalties would depend on the specific breach and the discretion of the courts or relevant authorities.