​​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 2026)

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure that fuel supplied in Australia meets certain quality standards, aiming to protect the environment and public health. This legislation establishes and enforces fuel quality standards and allows for the variation of these standards to facilitate the introduction of more sustainable fuel options. The Act is overseen by the Parliament of Australia, with the policy objective of balancing environmental protection and economic development through the regulation of fuel quality. Recently, a variation was approved under the Act, allowing BP Australia Pty Ltd to supply automotive diesel with up to 20% biodiesel content until 31 December 2026. This variation was introduced to address the need for additional low carbon fuel options for commercial users, while ensuring that occupational and public health and safety are not compromised. The decision to approve this variation was made with consideration of environmental benefits, economic impacts on the biodiesel industry, and consumer interests.

Scope and Application

The Fuel Quality Standards Act 2000, through the Fuel Quality Standards (Automotive Diesel) Determination 2019, governs the quality standards for automotive diesel supplied in Australia, including the biodiesel content. This legislation applies to entities involved in the supply of automotive diesel, such as BP Australia Pty Ltd, which has been granted a specific approval to supply diesel blends with biodiesel content ranging from 5.1% to 20% (B20). This approval is effective from the date of its issuance until 31 December 2026. The approval is designed to support environmental protection by reducing life-cycle greenhouse gas emissions, ensure the protection of occupational and public health and safety, cater to consumer interests by offering a low-carbon fuel option, and support economic and regional development by promoting the biodiesel industry. Notably, this biodiesel blend must be supplied under contract to commercial users and cannot be sold at forecourts, with fuel dispensers clearly labelled to inform consumers of the biodiesel content to prevent any warranty issues. The Act's application is extended through subordinate instruments, which may include further regulations or determinations as necessary to refine or expand the scope of the biodiesel blend provisions.

Key Provisions

The main operative sections of the legislation, specifically under the Fuel Quality Standards Act 2000, involve the approval process for variations to the Fuel Quality Standards (Automotive Diesel) Determination 2019. Section 13(1) of the Act allows the Minister for Climate Change and Energy to approve variations to the standards, and section 17A(1) of the Act provides the framework for these variations. In this case, section 17D of the Act details the decision to vary the existing approval held by BP Australia Pty Ltd (section 17D(1)). The variation allows for the supply of automotive diesel containing a maximum biodiesel content of up to 20%, a maximum density value of 860 kg/m3, and a minimum derived cetane number of 46, which is taken to comply with the relevant parameters specified in the Diesel Standard (section 13A(2)). The obligations and requirements imposed by the Act on BP Australia Pty Ltd and other parties include the necessity to supply the approved fuel blends under contract to commercial users, ensuring that the fuel dispensers are clearly labelled to inform consumers that the diesel contains biodiesel (section 13A(3)). BP Australia Pty Ltd must adhere to these conditions to address any potential warranty issues that may arise from the use of biodiesel blends. Additionally, the approval must be granted in consultation with the Fuel Standards Consultative Committee, as stipulated under section 24A of the Act, ensuring that the decision-making process considers the interests of various stakeholders, including environmental, occupational health and safety, and consumer interests. The Act also outlines potential offences, penalties, and consequences for breaches. Section 17A(4) of the Act specifies that failure to comply with the terms of the approval may result in civil or criminal penalties. The specific penalties for non-compliance are not detailed in the document, but under the general provisions of the Act, penalties for breaches can include fines up to a maximum of $165,000 for individuals and $825,000 for corporations, depending on the severity and nature of the breach. These penalties underscore the importance of adhering to the approved conditions to avoid legal repercussions.