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 – Marr Contracting Pty Ltd (Expiry 30 October 2023)

Overview

The Fuel Quality Standards Act 2000 was enacted to establish standards for the quality of fuel sold in Australia, with the aim of protecting the environment, public health, and safety, and supporting economic and regional development. This Act was introduced to address the need for uniform and enforceable standards that ensure the quality and safety of fuels used in Australia. The Act was passed by the Australian Parliament, with the objective of setting clear and consistent standards for fuel quality across the nation. The Assistant Secretary of the Liquid Fuels Branch within the Department of Climate Change, Energy, the Environment and Water, acting as a delegate of the Minister for Climate Change and Energy, has the authority to approve variations to the fuel quality standards set out in the Act. In this instance, an approval was granted to Marr Contracting Pty Ltd to supply a specific type of diesel fuel that meets certain criteria, subject to specified conditions, to ensure compliance with environmental, health, and safety standards.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the supply of liquid fuel in Australia, with the Act administered by the Department of Climate Change, Energy, the Environment and Water. This Act sets out the quality standards for liquid fuels sold in Australia, with the objective of protecting the environment, the health and safety of consumers and workers, and supporting economic and regional development. The Act applies to all persons and entities involved in the supply of liquid fuels, including producers, importers, and retailers. The Act extends to all states and territories of Australia, with the Commonwealth government responsible for setting and enforcing the standards. The Act includes provisions for exemptions and exclusions, with specific conditions and thresholds set out in subordinate instruments. The recent approval granted to Marr Contracting Pty Ltd under section 13 of the Act varies the fuel standard for diesel to allow for the supply of renewable diesel until 30 October 2023. This approval is subject to conditions designed to mitigate any potential risks to the environment, health and safety, and economic and regional development. The approval highlights the role of the Act in supporting the transition to cleaner energy and reducing greenhouse gas emissions.

Key Provisions

The key provisions of the Fuel Quality Standards Act 2000 (the Act) under which the approval was granted, include sections 13 (authorisation to vary fuel quality standards), 15 (criteria for approval), and 24A (consultation with the Fuel Standards Consultative Committee). Under section 13, the Act allows for the variation of fuel quality standards, subject to certain conditions. Section 15 sets out the criteria that must be considered when granting such an approval, and section 24A requires consultation with the Fuel Standards Consultative Committee before making a decision. The approval granted to Marr Contracting Pty Ltd under section 13 of the Act varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019, allowing for the supply of fuels with a minimum density value of 781.1 kg/m3 to be considered compliant with the relevant parameters specified in the Diesel Determination until 30 October 2023. The obligations imposed on Marr Contracting Pty Ltd and other regulated parties by this approval include adhering to the conditions specified in section 17 of the Act and those outlined in Annexure 2 of the approval. These conditions may include requirements for record-keeping, reporting, and compliance with any additional terms and conditions stipulated in the approval. The approval holder and other regulated parties must ensure that the fuels supplied under this approval are only used in off-road machinery and not supplied for on-road use. The Act also imposes specific obligations on the approval holder and other regulated parties, such as ensuring that the fuels supplied under the approval are handled and managed in accordance with existing protocols to protect the environment, occupational and public health and safety, and to safeguard the interests of consumers. The Act includes provisions for offences, penalties, and consequences for non-compliance with its requirements. In the case of breaches of the Act or the conditions of the approval, the Act may impose civil or criminal penalties, including fines and imprisonment. The maximum penalties for breaches of the Act depend on the nature and severity of the offence, but may include fines of up to $1.1 million for corporations and up to $220,000 for individuals, as well as imprisonment for up to five years. The Act also provides for the imposition of administrative penalties, such as infringement notices, for less serious breaches. It is essential for Marr Contracting Pty Ltd and other regulated parties to be aware of their obligations under the Act and the conditions of the approval to avoid potential penalties and consequences for non-compliance.