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 December 2025)

Overview

The Fuel Quality Standards Act 2000, enacted by the Parliament of Australia, addresses the need to regulate the quality of fuel sold within the country, ensuring that fuel standards protect the environment, public health, and safety while also considering economic and regional development. This Act allows for the establishment of fuel quality standards and the granting of approvals to vary these standards where necessary. The Act aims to balance environmental protection with economic considerations by permitting variations that support the growth of the biofuels industry and the supply of more sustainable fuel options. In this context, the Act facilitates the introduction of biodiesel blends into the market, recognising the dual benefits of reducing greenhouse gas emissions and supporting local industries. In light of this legislative framework, Miranda Lello, Branch Head of the Liquid Fuels Branch and delegate of the Minister for Climate Change and Energy, has granted an approval under section 13 of the Act to Viva Energy Australia Pty Ltd. This approval varies the fuel quality standard for automotive diesel to permit the supply of diesel containing up to 5% biodiesel (B5) with specific cetane number and density parameters. This decision was made following consultation with the Fuel Standards Consultative Committee and considers the potential impacts on the environment, public health and safety, consumer interests, and economic and regional development. The approval aims to enhance the availability of lower emission fuels, support local biodiesel producers, and meet state biofuel mandates, all while ensuring that the fuel remains safe and effective for use in existing diesel engines.

Scope and Application

The Fuel Quality Standards Act 2000, as amended and applied through the Notice issued by Miranda Lello, Branch Head of the Liquid Fuels Branch under the Department of Climate Change, Energy, the Environment and Water, governs the approval granted to Viva Energy Australia Pty Ltd for varying the fuel quality standards for automotive diesel. This approval applies specifically to B5 diesel containing a maximum of five per cent biodiesel content, and is intended to comply with the parameters set out in the Fuel Quality Standards (Automotive diesel) Determination 2019. The approval, which is effective until 31 December 2025, applies to Viva Energy Australia Pty Ltd and any regulated persons specified in Annexure 2 of the approval. The decision to grant this approval was based on considerations including environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. The Act's application extends nationally, with the specific approval facilitating compliance with state mandates, particularly in Queensland and New South Wales, thereby supporting local biodiesel production and industry development.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) governs the quality of fuels in Australia, and the Notice under Section 17A of the Act (section 17A Notice) outlines the approval granted to Viva Energy Australia Pty Ltd to vary the fuel quality standards for automotive diesel. The approval, effective from the date of issuance until 31 December 2025, modifies the parameters set forth in the Fuel Quality Standards (Automotive diesel) Determination 2019 (the Diesel Determination) to permit the supply of automotive diesel containing up to five percent biodiesel content (B5) with a minimum derived cetane number of 46 and a maximum density of 852 kg/m3. This variation is subject to the conditions stipulated in section 17 of the Act and an additional condition specified in Annexure 1 of the approval. The approval applies to B5 supplied by the approval holder and the regulated entities listed in Annexure 2 of the approval. The Act imposes several obligations and requirements on the parties it governs. The Branch Head of the Liquid Fuels Branch, a delegate of the Minister for Climate Change and Energy, must consult with the Fuel Standards Consultative Committee as required by section 24A of the Act before granting the approval. The approval holder, Viva Energy Australia Pty Ltd, must adhere to the conditions outlined in section 17 of the Act and the additional condition in Annexure 1 of the approval. The regulated entities specified in Annexure 2 must also comply with the approval's conditions. The approval holder and regulated entities must ensure that the automotive diesel supplied meets the modified parameters of the Diesel Determination, including the maximum biodiesel content, minimum cetane number, and maximum density. Failure to comply with the provisions of the Act or the conditions of the approval may result in various consequences. The Act does not specify explicit criminal offences for non-compliance, but violations of the approval's conditions may result in civil or administrative penalties. The approval holder and regulated entities must ensure that they adhere to the terms of the approval to avoid potential consequences. The specific penalties for non-compliance with the Act or the approval's conditions are not detailed in the section 17A Notice but may include fines, suspension or revocation of the approval, or other regulatory actions as deemed appropriate by the relevant authorities.