Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – Ampol Australia Petroleum Pty Ltd (Expiry 31 December 2024)

Overview

The Fuel Quality Standards Act 2000, enacted by the Parliament of Australia, was established to regulate the quality of fuel supplied in Australia and protect the environment, occupational and public health and safety, consumer interests, and economic and regional development. The Act enables the setting and enforcement of fuel quality standards, including the implementation of the Fuel Quality Standards (Automotive Diesel) Determination 2019. A recent notice under Section 17A of the Act, issued by Michelle Croker, Head of Division, Gas and Liquid Fuels Division, and delegate of the Minister for Climate Change and Energy, extended the approval for Ampol Australia Petroleum Pty Ltd to supply B20 diesel-biodiesel blended fuels until 31 December 2024. This decision was made to accommodate the environmental benefits and safety standards associated with biodiesel blends, while also supporting the growth of the Australian biodiesel industry, ensuring that the interests of consumers, occupational and public health and safety, and economic and regional development are protected.

Scope and Application

The Fuel Quality Standards Act 2000 applies to various entities involved in the production, importation, and supply of fuel within Australia. Specifically, it governs entities such as Ampol Australia Petroleum Pty Ltd, which holds an approval to supply diesel-biodiesel blended (B20) fuels. This legislation is enforced at the Commonwealth level and mandates compliance with quality standards for automotive diesel, ensuring environmental protection, public health, consumer safety, and economic development. The Act allows for variations to approvals through subordinate instruments, such as the variation granted to Ampol Australia Petroleum Pty Ltd, extending the supply period of B20 fuels until 31 December 2024. This approval includes specific conditions to mitigate duplicative reporting requirements and ensure transparent communication with consumers regarding the biodiesel content in the diesel supplied.

Key Provisions

The key operative sections of the Fuel Quality Standards Act 2000 (the Act) that are pertinent to this variation are sections 13, 15, and 17D. Section 13 of the Act provides for the approval of the variation in the fuel quality standards, while section 15 outlines the criteria for granting such approval, including considerations such as environmental protection, occupational and public health, consumer interests, and economic and regional development. Section 17D allows for the variation of the period of effect of an approval, which has been exercised in this case to extend the approval for Ampol Australia Petroleum Pty Ltd until 31 December 2024. The obligations imposed on Ampol Australia Petroleum Pty Ltd by this variation include continuing to supply B20 diesel biodiesel blends until the expiry date of the approval or until a B20 diesel biodiesel standard is made, whichever occurs first. The company must also comply with the updated conditions of the approval, which aim to reduce duplicative reporting requirements. Additionally, Ampol Australia Petroleum Pty Ltd must ensure that fuel dispensers are clearly labelled to inform consumers that the diesel contains biodiesel, as mandated under the conditions of the original approval. The Act stipulates various offences and penalties for breaches of its provisions. For example, supplying fuel that does not comply with the approved fuel quality standards could result in civil penalties, including fines up to $11,000 for an individual and $55,000 for a corporation. In more severe cases, criminal penalties may apply, with maximum penalties of up to $1.1 million for an individual and $5.5 million for a corporation, along with potential imprisonment terms. The specific penalties depend on the nature and extent of the breach, and the courts have the discretion to impose penalties within the statutory limits.