BRANCH HEAD, LIQUID FUELS BRANCH
DEPARTMENT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER
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 2025)
I, Miranda Lello, Branch Head, Liquid Fuels Branch, delegate of the Minister for Climate Change and Energy, 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
Ampol Australia Petroleum Pty Ltd (ABN 17 000 032 128)
Periods of operation
The approval comes into force on the date below and remains in force until 31 December 2025.
Details of the approval
This approval varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive diesel) Determination 2019 (the Diesel Determination), so that automotive diesel:
- containing a maximum of five per cent biodiesel content (B5) with a minimum derived cetane number of 46 and a maximum density of 852 kg/m3
is taken to comply with the relevant parameters specified in the Diesel Determination in respect of the supply of diesel biodiesel blended fuel for existing and potential customers.
The approval is granted subject to the conditions specified in section 17 of the Act and the condition specified in Annexure 1 of the approval.
This approval applies to B5 supplied by the approval holder and the regulated persons specified in Annexure 2 of the approval.
Summary of reasons for the approval
Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, and after considering the criteria in section 15 of the Act, I grant the approval for the following reasons:
(a) The protection of the environment
Tailpipe emissions from diesel-biodiesel blend use, compared to diesel, will have both positive and negative impacts on air quality as the level of biodiesel in the blend increases. In general, emissions of oxides of nitrogen increase, but particulate matter, hydrocarbons and carbon monoxide emissions all decrease.
(b) The protection of occupational and public health and safety
Diesel with up to 5 per cent biodiesel has been shown to be similar to mineral diesel. The impact on occupational and public health and safety should be no greater than diesel already supplied to the market.
(c) The interests of consumers
Granting of this variation increases the opportunity to reduce GHG emissions compared with mineral diesel. It also gives the opportunity for consumers to purchase more sustainably produced fuels.
There are no operability issues with blends up to 5% as evidenced by the allowance of such blends under the diesel standard, with the biodiesel component of the blend assisting with fuel lubricity and engine operation.
(d) The impact on economic and regional development
Granting this variation would enable biofuel wholesalers to meet the Queensland and NSW Biofuels Mandates. Enabling the supply of this fuel would support local Australian biodiesel producers and the development of the Australian biodiesel industry.
………………………………………………………………………….
Miranda Lello
Branch Head, Liquid Fuels Branch
15 December 2022
Overview
The Fuel Quality Standards Act 2000 was enacted to establish and regulate fuel quality standards to protect the environment and public health, as well as to support the interests of consumers and regional economic development. This legislation was introduced by the Australian Parliament to address the need for a comprehensive framework governing the quality of fuels supplied in the market. The Act provides the mechanism for setting and varying fuel quality standards through determinations and approvals, ensuring that the standards are periodically reviewed and updated to reflect the latest scientific and technological advancements. The policy objective of the Act is to maintain high fuel quality that mitigates environmental impact, enhances public health safety, and supports the economic viability of the fuel industry, including the burgeoning biofuels sector.
Scope and Application
The Fuel Quality Standards Act 2000 applies to the regulation of fuel quality standards in Australia, with this particular approval concerning automotive diesel. The Act applies to Ampol Australia Petroleum Pty Ltd, a specified entity, and the regulated persons detailed in Annexure 2 of the approval. The approval grants Ampol Australia Petroleum Pty Ltd permission to supply diesel containing up to five per cent biodiesel content (B5) with specific parameters, such as a minimum derived cetane number of 46 and a maximum density of 852 kg/m3. This approval is in force from the date of the notice and will remain in effect until 31 December 2025. The approval is subject to conditions specified in section 17 of the Act and a specific condition detailed in Annexure 1 of the approval. The approval extends its application through subordinate instruments, which may include guidelines, regulations, or orders under the authority of the Act. The Act's jurisdiction is federal, with the approval granted under the authority of the Minister for Climate Change and Energy. There are no stated exclusions or exemptions within the scope of this approval.
Key Provisions
Section 13 of the Fuel Quality Standards Act 2000 provides the basis for granting an approval to vary the fuel quality standards for automotive diesel, and section 17A allows for the publication of such approvals in the Gazette. Under this authority, the Branch Head of the Liquid Fuels Branch has granted an approval to Ampol Australia Petroleum Pty Ltd to vary the fuel quality standards for automotive diesel containing up to five percent biodiesel content (B5), effective from the date of publication and expiring on 31 December 2025. This approval permits B5 to comply with the parameters of the Fuel Quality Standards (Automotive diesel) Determination 2019, provided certain conditions are met, as outlined in section 17 of the Act and specified in the approval.
The approval imposes several obligations on the parties involved. Ampol Australia Petroleum Pty Ltd, as the approval holder, must ensure that any B5 supplied adheres to the specified conditions, including the maximum biodiesel content of five percent, a minimum derived cetane number of 46, and a maximum density of 852 kg/m3. Additionally, the approval applies to regulated persons as specified in Annexure 2 of the approval, who are also subject to compliance with these standards. The approval is contingent upon consultation with the Fuel Standards Consultative Committee and consideration of the criteria outlined in section 15 of the Act.
Breach of the conditions set out in the approval may lead to civil or criminal consequences. Under the Fuel Quality Standards Act 2000, any person who contravenes the terms of the approval or who supplies non-compliant fuel may be subject to penalties. The maximum penalties for such offences can include fines and, in some cases, imprisonment, depending on the severity and intent of the breach. Furthermore, non-compliance with the approval could also result in the revocation of the approval itself, impacting the ability of the approval holder and regulated persons to supply the specified fuel.