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 – Mobil Oil Australia Pty Ltd (Expiry 31 December 2025)

Overview

The Fuel Quality Standards Act 2000, enacted by the Commonwealth Parliament, was introduced to establish standards for the quality of liquid fuels supplied in Australia. This Act ensures that liquid fuels meet specified quality standards to protect the environment, public health, and safety, and to support economic and regional development. The Act allows for variations to these standards under certain conditions, as demonstrated in a recent approval granted to Mobil Oil Australia Pty Ltd by Miranda Lello, the Branch Head of the Liquid Fuels Branch within the Department of Climate Change, Energy, the Environment and Water. This approval, which comes into force and remains effective until 31 December 2025, modifies the fuel standard for automotive diesel to permit the supply of diesel containing up to five per cent biodiesel content. The decision to grant this approval was based on the potential benefits to environmental protection, public health and safety, consumer interests, and regional economic development, including the support of local biodiesel producers and compliance with the Queensland and New South Wales Biofuels Mandates.

Scope and Application

The Fuel Quality Standards Act 2000 applies to various entities, including fuel producers, suppliers, and importers, and sets out the standards for the quality of fuel sold within Australia. The Act covers the supply of automotive diesel, ensuring compliance with specified quality parameters to protect the environment, public health, and safety, and to support economic and regional development. This particular approval, granted under section 13 of the Act, pertains to Mobil Oil Australia Pty Ltd, allowing them to supply diesel containing up to five per cent biodiesel content (B5) with specific cetane number and density parameters. This approval is effective from the date of notice until 31 December 2025, and applies to the regulated persons listed in Annexure 2 of the approval. The decision to grant this approval was based on environmental, health, consumer, and economic factors, ensuring that the biodiesel blend does not adversely impact air quality, occupational health, or economic interests while supporting the biodiesel industry and meeting biofuel mandates in Queensland and New South Wales. The approval is subject to the conditions outlined in section 17 of the Act and detailed in Annexure 1 of the approval.

Key Provisions

The key provisions of this notice under section 17A of the Fuel Quality Standards Act 2000 (the Act) concern the granting of an approval by the Branch Head, Liquid Fuels Branch, to Mobil Oil Australia Pty Ltd (ABN 88 004 052 984) to vary the fuel quality standards for automotive diesel as set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination). Mobil Oil Australia Pty Ltd has been granted the approval under section 13 of the Act for the supply of 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, which is taken to comply with the parameters specified in the Diesel Determination (section 13, 17A). Mobil Oil Australia Pty Ltd, as the approval holder, has been granted the authority to supply the specified B5 diesel under the conditions outlined in section 17 of the Act and those detailed in Annexure 1 of the approval. This approval applies to B5 supplied by Mobil Oil Australia Pty Ltd and the regulated persons specified in Annexure 2 of the approval. The approval is effective from the date of the notice and will remain in force until 31 December 2025. The decision to grant this approval was made after consulting with the Fuel Standards Consultative Committee, in accordance with section 24A of the Act, and considering the criteria in section 15 of the Act. The Act imposes certain obligations and requirements on the parties governed by it. Mobil Oil Australia Pty Ltd must ensure that the diesel supplied complies with the specified parameters and adheres to the conditions outlined in the approval. These conditions are designed to protect the environment, public health and safety, and the interests of consumers, as well as support economic and regional development. Mobil Oil Australia Pty Ltd is also required to maintain records and provide information to the Liquid Fuels Branch as necessary. Breach of the conditions of the approval or non-compliance with the provisions of the Act may result in civil or criminal consequences. Offences under the Act may lead to penalties, including fines of up to $66,000 for individuals and $330,000 for bodies corporate, as per section 28 of the Act. Additionally, breaches of the conditions outlined in the approval may result in the suspension or cancellation of the approval, further impacting Mobil Oil Australia Pty Ltd's ability to supply the specified B5 diesel. It is essential for Mobil Oil Australia Pty Ltd to adhere to the requirements and conditions of the approval to avoid any potential penalties or consequences.