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 approvals under section 13 of the Fuel Quality Standards Act 2000 (the Act).
Approvals
BP Australia Pty Ltd, dated 28 May 2020
Mobil Oil Australia Pty Ltd, dated 4 June 2020
Details of the approval
The approvals to BP Australia Pty Ltd and Mobil Oil Australian Pty Ltd (the listed approvals) were granted to vary 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.
Pursuant to section 13A(1) and (2) of the Act, the listed approvals came into force on the date specified in the approval, and remain in force for the period specified in the approval (being until 28 May 2021).
Details of the variation
Pursuant to section 17D(1) of the Act, the period of effect of the listed approvals have been varied in respect of the supply of automotive diesel fuel until 28 May 2022.
Summary of reasons for the variation
Having consulted with the Fuel Standards Consultative Committee as required by section 17D(3) of the Act, and after considering the criteria in section 15 of the Act, I have granted the variation to the listed approval holder 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 (being 60.5 degrees Celsius instead of 61.5 degrees 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 and cost competitiveness of each barrel of petroleum, 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
26 May 2021
Overview
The Fuel Quality Standards Act 2000 was enacted to ensure the quality of fuel supplied in Australia, protecting the environment, occupational and public health and safety, and consumer interests. This Act provides the legal framework for establishing and enforcing fuel quality standards, and allows for variations to these standards under specific conditions. The policy objective of the Act is to regulate the quality of fuel to prevent adverse effects on health, safety, and the environment, while also considering economic and regional development impacts. Recently, the Minister for Energy and Emissions Reduction, Angus Taylor, approved variations to the Fuel Quality Standards (Automotive Diesel) Determination 2019 for BP Australia Pty Ltd and Mobil Oil Australia Pty Ltd, allowing for the supply of automotive diesel fuel with a lower flash point of 60.5 degrees Celsius until 28 May 2022. This decision was made after considering the environmental, safety, consumer, and economic implications, and consulting with the Fuel Standards Consultative Committee.
Scope and Application
The Fuel Quality Standards Act 2000 applies to entities involved in the supply of automotive fuels in Australia, particularly those related to diesel fuel. The Act provides the legislative framework for the establishment and enforcement of fuel quality standards, including the ability for the Minister for Energy and Emissions Reduction to approve variations to these standards. In this context, the Act applies to BP Australia Pty Ltd and Mobil Oil Australia Pty Ltd, both of which have received approvals to vary the minimum flash point for automotive diesel fuel from 61.5 degrees Celsius to 60.5 degrees Celsius. The geographic reach of the Act is national, as it applies across all states and territories of Australia. The Act does not explicitly state exclusions or thresholds; however, the approvals granted under this legislation are specific to the entities and the conditions outlined. The Minister's powers to approve variations are extended through subordinate instruments, which allow for the detailed specification of conditions under which the variations can be applied.
Key Provisions
The key operative sections of the Fuel Quality Standards Act 2000 (the Act) in this notice concern sections 13, 13A, and 17D. Section 13 permits the Minister to approve a variation to the fuel quality standards, while section 13A specifies the effective dates of such approvals. Section 17D provides the authority to vary the period of effect of an approval. In this case, the Minister has exercised these powers to allow BP Australia Pty Ltd and Mobil Oil Australia Pty Ltd to supply automotive diesel fuel with a minimum flash point of 60.5 degrees Celsius until 28 May 2022, instead of 61.5 degrees Celsius as previously specified in the Fuel Quality Standards (Automotive Diesel) Determination 2019.
The Act imposes several obligations on the parties it governs. The Minister, in this case, is required to consult with the Fuel Standards Consultative Committee as mandated by section 17D(3) before varying the period of effect of an approval. Additionally, the Minister must consider the criteria outlined in section 15 of the Act, which includes the protection of the environment, the protection of occupational and public health and safety, the interests of consumers, and the impact on economic and regional development when making a decision regarding a variation to the fuel quality standards.
In terms of the consequences for breach, the Act does not explicitly outline specific offences or penalties for non-compliance with the varied fuel quality standards. However, it is important to note that any deviation from the approved standards could potentially result in civil or criminal liability under other relevant legislation. The primary focus of this notice is on the approval process and the rationale behind the variation, rather than detailing specific penalties for non-compliance with the varied standards.