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 – BP AUSTRALIA 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
bp Australia Pty Ltd (ABN 53 004 085 616)
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.
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Miranda Lello
Branch Head, Liquid Fuels Branch
15 December 2022
Overview
The Fuel Quality Standards Act 2000, enacted by the Australian Parliament, was introduced to establish quality standards for liquid fuels to protect public health, safety, and the environment. This Act aims to regulate the composition and quality of fuels used in Australia, ensuring they meet specific criteria that safeguard against harmful emissions and promote sustainable practices. The legislation provides a framework for setting and varying fuel quality standards through determinations and approvals by the relevant authorities, allowing for adjustments based on technological advancements, environmental considerations, and economic impacts. The 2023 approval granted under section 13 of the Act to BP Australia Pty Ltd, which allows for a variation in the fuel quality standards for automotive diesel containing up to 5% biodiesel, underscores the Act's role in balancing environmental protection, public health, consumer interests, and economic development. This decision reflects the Act's policy objective of fostering the use of more sustainable fuel options while ensuring compatibility with existing fuel specifications and infrastructure.
Scope and Application
The Fuel Quality Standards Act 2000, under which this approval has been granted, applies to various entities and industries involved in the production, distribution, and supply of fuel in Australia. Specifically, the Act applies to bp Australia Pty Ltd, the approval holder, and other regulated persons as outlined in the approval's Annexure 2. The approval pertains to the variation of fuel quality standards for automotive diesel containing up to five per cent biodiesel content (B5), ensuring it complies with the parameters set out in the Fuel Quality Standards (Automotive diesel) Determination 2019. This geographic and jurisdictional reach is national, as the Act is a Commonwealth Act and applies across Australia. The approval is subject to specific conditions and may be extended or restricted through subordinate instruments, ensuring compliance with the Act's provisions.
Key Provisions
The key provisions of the notice under section 17A of the Fuel Quality Standards Act 2000 (the Act) relate to an approval granted to vary the fuel quality standards for automotive diesel. Section 13 of the Act allows for the approval of variations to fuel quality standards, and in this case, the approval is given to bp Australia Pty Ltd (section 1). This approval varies the fuel standard for diesel to allow for the supply of automotive diesel containing up to five percent biodiesel content (B5) with specific cetane number and density requirements (section 2). The approval is effective from the date of the notice and will remain in force until 31 December 2025 (section 2).
The obligations and requirements imposed by this approval on bp Australia Pty Ltd and any regulated persons specified in Annexure 2 of the approval include compliance with the conditions outlined in section 17 of the Act and the specific condition detailed in Annexure 1 of the approval. These conditions are likely to include requirements around the quality and composition of the biodiesel blend, as well as any reporting or monitoring obligations necessary to ensure compliance with the approved variation.
Breach of the conditions set out in the approval or the Act could result in various civil or criminal consequences. Under section 20 of the Act, a person who contravenes a condition of an approval may be liable to a penalty. The maximum penalty for a corporation that contravenes a condition of an approval is generally 500 penalty units (approximately AUD 83,000 as of 2023) for each day of the contravention, which could accumulate to significant amounts over time. Additionally, there may be other civil or criminal penalties applicable under different sections of the Act for serious or repeated breaches, which could include fines or imprisonment. The specific consequences would depend on the nature and severity of the breach, as well as any relevant case law or regulatory guidelines.