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 – BP Australia Pty Ltd (Expiry 30 October 2023)

Overview

The Fuel Quality Standards Act 2000, enacted by the Parliament of Australia, was introduced to ensure that liquid fuels sold in Australia meet specific quality standards that protect the environment and the health and safety of the public. This Act enables the setting of fuel quality standards through determinations, which can be varied under certain circumstances to allow for innovation and trialling of new fuels that could benefit the environment or the economy. The Act is administered by the Department of Climate Change, Energy, the Environment and Water. In this instance, the Assistant Secretary of the Liquid Fuels Branch, as a delegate of the Minister for Climate Change and Energy, has exercised powers under the Act to approve a variation to the fuel quality standards for automotive diesel, specifically for the supply of renewable diesel for trial purposes within the Pilbara region by BP Australia Pty Ltd. The primary policy objectives underpinning this approval include protecting the environment, safeguarding occupational and public health and safety, advancing consumer interests by potentially reducing greenhouse gas emissions, and supporting economic and regional development through the exploration of cleaner energy options.

Scope and Application

The Fuel Quality Standards Act 2000 provides a framework for ensuring the quality of liquid fuels in Australia, with the Act applying to entities supplying liquid fuels and those involved in the production, storage, or distribution of these fuels. The scope of this legislation is primarily concerned with environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. In the case of the notice issued by the Assistant Secretary of the Liquid Fuels Branch under section 17A of the Act, the approval pertains specifically to BP Australia Pty Ltd, granting them permission to vary the fuel quality standards for automotive diesel for trial purposes within the Pilbara region. The approval allows the supply of fuels with a minimum density value of 790 kg/m3 to be considered compliant with the relevant parameters in the Fuel Quality Standards (Automotive Diesel) Determination 2019. This authorisation is subject to conditions outlined in section 17 of the Act and those specified in Annexure 2 of the approval. The geographic reach of the Act is national, with the specific approval for BP Australia Pty Ltd operating from the date of the notice until 30 October 2023. The Act does not explicitly state exclusions, exemptions, or thresholds, although the approval is granted with certain conditions in mind to ensure the protection of the environment, occupational and public health and safety, consumer interests, and economic and regional development. The application of the Act may be extended or restricted through subordinate instruments, such as determinations and regulations, which can provide further detail on specific aspects of fuel quality standards.

Key Provisions

The key provision of this legislation (Gazette) pertains to the approval granted to bp Australia Pty Ltd under section 13 of the Fuel Quality Standards Act 2000 (the Act). This approval, which comes into force immediately and will expire on 30 October 2023, permits a variation of the fuel standard for diesel. Specifically, fuels with a minimum density value of 790 kg/m³ will be considered compliant with the parameters outlined in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination) for the purpose of supplying renewable diesel for trial within the Pilbara region (section 17A). This approval is contingent on the conditions specified in section 17 of the Act and in Annexure 2 of the approval. This Act imposes several obligations on the parties involved. Firstly, bp Australia Pty Ltd, as the approval holder, must comply with the conditions stipulated in section 17 of the Act and Annexure 2 of the approval. These conditions likely include specific requirements regarding the handling, storage, and distribution of the approved fuels to ensure environmental, occupational, and public health and safety standards are met. The approval also applies to regulated persons specified in Annexure 1 of the approval, who must adhere to the conditions outlined to ensure the proper use of the approved fuels within the designated trial area. Additionally, the Act mandates consultation with the Fuel Standards Consultative Committee, as required by section 24A, to ensure that the decision aligns with the collective expertise and considerations of relevant stakeholders. Failure to comply with the provisions of the Act can result in various consequences. Under section 15 of the Act, the approval holder must meet the criteria outlined for granting the approval, which includes considerations of environmental protection, public health and safety, consumer interests, and economic and regional development. Breaches of these criteria or the specified conditions can lead to revocation of the approval, enforcement actions, and potentially legal proceedings. The Act does not explicitly outline specific penalties for breaches, but violations of fuel quality standards and related conditions could result in fines, imprisonment, or both, depending on the severity and impact of the breach. The maximum penalties for such breaches would be determined by relevant legislation governing environmental and public safety regulations.