Notice under section 17A of the Fuel Quality Standards Act 2000 concerning an approval to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 granted under section 13 of that Act – Ampol Australia Petroleum Pty Ltd (Expiry 31 December 2023)

Overview

The Fuel Quality Standards Act 2000 was enacted by the Australian Parliament to ensure that the quality of fuels available in Australia meets specific standards that protect the environment, public health and safety, and consumer interests. This legislation provides a framework for the establishment and enforcement of fuel quality standards and enables the Minister to approve variations to these standards under certain conditions. The Act addresses the problem of maintaining high-quality fuel standards to safeguard against the potential adverse effects of fuel on the environment and human health, as well as to promote the interests of consumers and the broader economy. The policy objective of the Act is to regulate the quality of fuel sold in Australia to ensure it meets the specified standards, thereby protecting the environment and public health while also supporting economic and regional development through the introduction of sustainable fuel alternatives.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities and persons involved in the production, importation, and supply of fuel in Australia. This Act sets out the standards that must be met for various fuel types, including automotive diesel, and governs the processes for approving variations to these standards. The approval granted under section 13 of the Act to Ampol Australia Petroleum Pty Ltd specifically pertains to the variation of the fuel standard for diesel to allow for the supply of renewable diesel to commercial customers under contract. This approval is geographically applicable across Australia and remains in force until 31 December 2023, subject to the conditions specified in the Act and the approval document. The Act's application may be extended or restricted through subordinate instruments, although the current approval does not specify any such extensions or restrictions beyond the outlined conditions and the expiry date.

Key Provisions

The key operative sections of the legislation (C2022G01264) relate to the grant of an approval under section 13 of the Fuel Quality Standards Act 2000. This approval, issued by Miranda Lello, Branch Head of the Liquid Fuels Branch, delegate of the Minister for Climate Change and Energy, pertains to Ampol Australia Petroleum Pty Ltd, allowing it to vary the fuel standard for automotive diesel. Specifically, the approval enables the supply of renewable diesel with a minimum density value of 765 kg/m3 to commercial customers under contract. This variation is permitted under the conditions outlined in section 17 of the Act and the specific conditions detailed in Annexure 1 of the approval. The Act imposes several obligations on the parties involved. Firstly, Ampol Australia Petroleum Pty Ltd must ensure that the renewable diesel supplied complies with the modified standards specified in the approval, which is intended to facilitate the supply of renewable diesel for commercial customers. The approval also mandates that the renewable diesel supplied should be comparable to existing diesel in terms of handling, storage, and distribution. Furthermore, Ampol must adhere to the conditions set out in the approval, including those related to environmental protection, occupational and public health and safety, and consumer interests. The legislation also outlines the consequences for non-compliance. Breaches of the conditions specified in the approval could result in various penalties. Under the Fuel Quality Standards Act 2000, any failure to comply with the terms of the approval may lead to enforcement actions, including potential fines or other penalties as prescribed by law. While the specific penalties are not detailed in the notice, they could encompass civil or criminal sanctions, depending on the nature and severity of the breach. The maximum penalties for contravening the Act can be significant, reflecting the importance of adhering to the stipulated fuel quality standards and conditions.