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 – Viva Energy Australia Pty Ltd (Expiry 31 August 2025)

Overview

The Fuel Quality Standards Act 2000, enacted by the Parliament of Australia, was designed to ensure the quality of liquid fuels supplied in Australia, with an emphasis on environmental protection, public health, and safety. This legislation provides the framework for establishing and varying fuel quality standards, and it allows the Minister to grant approvals under specific circumstances that align with the policy objectives of the Act. The Act aims to regulate the quality of liquid fuels to safeguard the environment, protect occupational and public health and safety, and support the interests of consumers and economic development. The Fuel Quality Standards (Automotive Diesel) Determination 2019 specifies the quality standards for automotive diesel, and under section 13 of the Act, the Minister can approve variations to these standards when certain criteria are met. The approval granted to Viva Energy Australia Pty Ltd to supply renewable diesel with a minimum density of 780 kg/m3 for trial purposes until 31 August 2025, is an example of how the Act facilitates the transition to cleaner energy sources while ensuring that any variations do not adversely impact the environment, public health, or safety.

Scope and Application

The notice issued under Section 17A of the Fuel Quality Standards Act 2000 pertains to an approval granted to Viva Energy Australia Pty Ltd, ABN 46 004 610 549, for varying the fuel quality standards concerning automotive diesel. This approval, effective from the date of issue and expiring on 31 August 2025, modifies the minimum density value of diesel to 780 kg/m3 for renewable diesel supplied to commercial customers under contract. The decision was made following consultations with the Fuel Standards Consultative Committee and aligns with the criteria outlined in Section 15 of the Act, taking into account environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. The approval is subject to the conditions specified in Sections 17 and Annexure 1 of the Act, ensuring that the supply of these fuels for trial purposes does not adversely affect the environment or pose additional health and safety risks. This legislation applies to Viva Energy Australia Pty Ltd and its supply of renewable diesel within Australia, demonstrating the Commonwealth's jurisdiction over fuel quality standards.

Key Provisions

The key operative sections of the legislation are sections 13 and 17A of the Fuel Quality Standards Act 2000 (the Act), which govern the approval process for varying fuel quality standards. Section 13 of the Act provides the authority for the Minister to approve variations to fuel quality standards, while section 17A requires the Minister to notify the public of any such approval. In this case, the Minister has approved a variation to the fuel quality standard for automotive diesel (section 13), allowing fuels with a minimum density value of 780 kg/m3 to be considered compliant with the relevant parameters specified in the Fuel Quality Standards (Automotive diesel) Determination 2019 (the Diesel Determination) for the supply of renewable diesel to commercial customers under contract. The approval is subject to the conditions specified in section 17 of the Act and the conditions specified in Annexure 1 of the approval (section 17A). The Act imposes several obligations and requirements on Viva Energy Australia Pty Ltd as the approval holder. Firstly, the company must ensure that any fuels supplied under the approval comply with the specified conditions and parameters, including the minimum density value of 780 kg/m3 for renewable diesel. Secondly, Viva Energy Australia Pty Ltd must adhere to any additional conditions outlined in Annexure 1 of the approval. These conditions may include requirements for record-keeping, reporting, and monitoring to ensure compliance with the approval and to assess its impact on the environment, occupational and public health and safety, and the interests of consumers. Finally, the company must ensure that the fuels are supplied only to commercial customers under contract and for trial purposes, as specified in the approval. The Act provides for offences and penalties for breach of the conditions or requirements of the approval. Any person who contravenes the conditions of the approval, or who fails to comply with the requirements of the Act, may be liable to civil and criminal penalties. In the case of civil penalties, a person who contravenes the approval may be fined up to $11,000 for each day of the contravention. In the case of criminal penalties, a person who contravenes the approval may be fined up to $110,000 for an individual or $550,000 for a body corporate, or may be imprisoned for up to two years, or both. Additionally, the Act provides for the Minister to revoke the approval if the company fails to comply with the conditions or requirements of the approval, or if the approval is no longer considered to be in the public interest.