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

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure the quality of fuel supplied in Australia meets certain standards to protect the environment, public health, and safety. This Act addresses the problem of ensuring that the quality of fuel supplied in Australia is consistent with the intended use of the fuel and the environmental and health impacts associated with its use. The Act was introduced by the Parliament of Australia and its primary policy objective is to safeguard the environment and public health by setting and enforcing fuel quality standards. The legislation provides a framework for the regulation of fuel quality and allows for the variation of standards to accommodate new fuel types and blends, such as biodiesel blends in diesel, which can have both positive and negative impacts on air quality and public health.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality standards of fuel sold in Australia, with particular emphasis on automotive fuels. Under this Act, the Head of Division, Gas and Liquid Fuels Division, has the authority to approve variations in fuel quality standards through subordinate instruments. In this instance, the approval pertains to BP Australia Pty Ltd, granting them permission to supply diesel-biodiesel blended (B20) fuels until 31 December 2024. This variation extends the initial approval period and adjusts the maximum density of the fuel under the Fuel Quality Standards (Automotive Diesel) Determination 2019. The approval is subject to specific conditions designed to protect the environment, ensure public and occupational health and safety, inform consumers about the fuel composition, and support regional and economic development. The variation was approved after consultation with the Fuel Standards Consultative Committee and takes into account the balance of environmental, health, and economic factors associated with the use of biodiesel blends in diesel fuel.

Key Provisions

The main sections of this legislation that are of particular importance are section 13, which relates to the approval of a variation to an existing fuel quality standard, and section 17A, which empowers the Head of Division to make this variation. Section 13A(1) and (2) confirm the original approval of BP Australia Pty Ltd to supply diesel-biodiesel blended (B20) fuels, and section 17D(1) allows for the variation of this approval. The variation extends the period of effect of the approval to 31 December 2024 and alters the maximum density to 860 kg/m3. The updated conditions of the approval also reduce duplicative reporting requirements. The obligations imposed on BP Australia Pty Ltd by this Act include the continued supply of B20 diesel under contract to commercial users only, with fuel dispensers clearly labelled to advise consumers that the diesel contains biodiesel. This is to mitigate any potential warranty issues and ensure transparency in the supply chain. Additionally, the variation requires BP Australia Pty Ltd to adhere to the new maximum density of 860 kg/m3 for the B20 diesel, as well as the extended period of effect, which runs until 31 December 2024 or until a B20 diesel biodiesel standard has been made, whichever occurs first. Failure to comply with the provisions of the Act and the terms of the approval could result in legal consequences. Although the notice does not explicitly mention specific penalties for non-compliance, the Act itself provides for civil and criminal penalties for breaches. For instance, section 18 of the Act allows for fines up to $11,100 for individuals and $55,500 for corporations for each contravention of the Act or its regulations. More serious offences, such as knowingly supplying fuel that does not comply with the standards, could result in higher penalties, including imprisonment. It is therefore crucial for BP Australia Pty Ltd to adhere to the terms of the approval and the requirements of the Act to avoid any potential penalties or legal repercussions.