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 2025)

Overview

The Fuel Quality Standards Act 2000 was enacted by the Australian Parliament to regulate the quality of liquid fuels supplied in Australia, ensuring that they meet specific environmental, health, and safety standards. This legislation aimed to address the problem of inconsistent fuel quality, which could adversely affect the environment, public health, and regional economies. The Act provides a framework for setting and enforcing fuel quality standards, with the overarching policy objective of protecting the environment, public health, and safety, while also supporting economic and regional development. The notice issued under Section 17A of the Act by Cris Cano, Branch Head of the Liquid Fuels Operations and Analysis Branch, Department of Climate Change, Energy, the Environment and Water, pertains to the variation of the fuel quality standards for automotive diesel. The approval granted to BP Australia Pty Ltd allows for the supply of diesel containing a minimum density value of 790 kg/m3, specifically for blends containing 20% to 50% renewable diesel. This approval, effective until 31 December 2025, supports the use of renewable diesel, which has lower life-cycle greenhouse gas emissions and similar safety characteristics to mineral diesel, thereby aiding in the reduction of emissions and promoting sustainable fuel alternatives.

Scope and Application

The Fuel Quality Standards Act 2000 applies to various entities involved in the production, supply, and distribution of fuel in Australia, including companies like BP Australia Pty Ltd, which is specified in this particular gazette notice. This Act establishes the framework for fuel quality standards, ensuring that fuels sold within Australia meet specific environmental, health, and safety criteria. The Act's application extends to both mineral and renewable diesel fuels, with this approval focusing on varying the fuel standard for automotive diesel to accommodate up to 50% renewable diesel-diesel blends. The approval granted to BP Australia Pty Ltd allows for the supply of renewable diesel blends that meet a minimum density value of 790 kg/m3, which are considered to comply with the relevant parameters specified in the Fuel Quality Standards (Automotive Diesel) Determination 2019. This approval is effective from the date of issuance until 31 December 2025 and is contingent upon BP Australia Pty Ltd adhering to the conditions outlined in the Act, which includes considerations for environmental protection, occupational and public health and safety, consumer interests, and economic and regional development.

Key Provisions

The Fuel Quality Standards (Automotive Diesel) Determination 2019 (Diesel Standard) is amended under section 13 of the Fuel Quality Standards Act 2000 (the Act) to permit BP Australia Pty Ltd to supply diesel containing a minimum density value of 790 kg/m³, which is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of 20% and up to 50% renewable diesel-diesel blends. This approval is effective from the date of the approval and remains in force until 31 December 2025 (section 13A(1) and (2)). The decision to grant this approval is grounded in the need to protect the environment, safeguard occupational and public health and safety, benefit consumers, and support economic and regional development. Renewable diesel blends, produced exclusively from renewable sources, offer environmental benefits such as lower particulate emissions and life-cycle greenhouse gas emissions compared to mineral diesel. BP Australia Pty Ltd must comply with the terms of the approval, ensuring that the supplied fuel adheres to the specified parameters and does not pose additional risks to the environment, occupational and public health, and safety. The approval process involved consultation with the Fuel Standards Consultative Committee, as mandated by section 24A of the Act. BP must also ensure that the supply of renewable diesel blends does not introduce new hazards or require additional handling, storage, or distribution protocols beyond those already in place for mineral diesel. The department's assessment found no additional occupational and public health and safety risks associated with the use of these fuels. Failure to comply with the terms of the approval, or the provisions of the Act, could lead to enforcement actions. The Act does not specify particular offences related to this approval; however, general provisions within the Act may apply. These could include provisions related to misleading representations about fuel quality, which could lead to civil or criminal penalties. Under section 53 of the Act, an individual or company found guilty of an offence may be subject to fines and imprisonment. The maximum penalty for an individual offence under the Act can be up to $1.2 million or imprisonment for up to five years, or both, depending on the severity of the offence. For corporate offences, the maximum penalties can be significantly higher, reflecting the potential impact on public health and safety and the environment.