Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – Ampol Australia Pty Ltd (Expiry 31 December 2026)

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure that fuel sold in Australia meets certain quality standards to protect the environment, health, and safety of consumers and workers. The Act provides a framework for setting and enforcing fuel quality standards, and allows for variations to these standards to be approved under certain conditions. In this context, the Act was introduced to address the need for regulatory flexibility in adapting to evolving fuel quality requirements and advancements in fuel technology. The enacting body was the Commonwealth Parliament. The policy objective of this legislation is to balance environmental protection and public health with economic and regional development by allowing for the introduction of cleaner fuel alternatives while ensuring consumer and occupational safety. This balance is achieved through the establishment of quality standards and the ability to approve variations that align with environmental and safety goals.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality of fuel sold in Australia, ensuring that it meets certain environmental, health, safety, and consumer standards. This legislation applies to entities that manufacture, supply, or import fuel within Australia, including Ampol Australia Pty Ltd, which has been granted a specific approval to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019. This approval permits the supply of diesel blends containing between 5.1% and 20% biodiesel, extending beyond the 5% biodiesel limit previously stipulated in the standard. The approval ensures that the fuel meets parameters such as a maximum biodiesel content, a maximum density value, and a minimum derived cetane number. The Act's application is overseen by the Department of Climate Change, Energy, the Environment and Water, with specific approvals granted by the Head of Division, Gas and Liquid Fuels Division, on behalf of the Minister for Climate Change and Energy. The approval granted to Ampol Australia Pty Ltd is in force until 31 December 2026, and it includes conditions to protect the environment, public health, consumer interests, and to support economic and regional development by facilitating the growth of the biodiesel industry.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) contains provisions allowing the variation of fuel quality standards. Section 13 of the Act permits the Head of Division to approve variations in the quality standards for certain fuels, while section 17A outlines the process for making such variations. In this particular case, section 17D of the Act was invoked to approve a variation in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Standard) for Ampol Australia Pty Ltd (sections 13 and 17D). Under section 13 of the Act, the approval allows Ampol Australia Pty Ltd to supply automotive diesel with a biodiesel content ranging from 5.1% to 20%. This variation extends the permitted biodiesel content beyond the standard limit of 5%, while also stipulating specific parameters such as a maximum density value of 860 kg/m3 and a minimum derived cetane number of 46 (section 13A). The approval is in effect from the date of the approval until 31 December 2026. The obligations imposed by the Act on Ampol Australia Pty Ltd include ensuring that the biodiesel-diesel blends supplied are within the specified parameters and that they are only supplied under contract to commercial users. The fuel dispensers must be clearly labelled to indicate the presence of biodiesel to avoid any warranty issues (section 13A(2)). Additionally, the approval is contingent upon Ampol Australia Pty Ltd adhering to environmental, health, and safety considerations as outlined in the Act, particularly in relation to the protection of the environment, occupational and public health and safety, and the interests of consumers. Failure to comply with the conditions of the approval, such as supplying blends outside the specified parameters or without proper labelling, may result in legal consequences. While the Act does not specify particular offences or penalties for this approval, general provisions within the Act may apply. These could include administrative penalties for non-compliance, enforcement actions by regulatory bodies, and potential civil or criminal liability for significant breaches affecting public health and safety or the environment. The precise penalties would depend on the nature and severity of the breach.