Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – Fulie Energy Pty Ltd (Expiry 31 December 2025)

Overview

The Fuel Quality Standards Act 2000 was enacted by the Australian Parliament to establish and regulate fuel quality standards, ensuring that fuels sold in Australia meet certain environmental and safety criteria. This Act aims to address issues related to fuel quality, environmental protection, and the safety of consumers and workers. In 2024, the Department of Climate Change, Energy, the Environment and Water issued a notice under Section 17A of the Act to approve a variation in the Fuel Quality Standards (Automotive Diesel) Determination 2019 for Fulie Energy Pty Ltd, allowing for the supply of renewable diesel with a minimum density value of 765 kg/m3 until 31 December 2025. The decision was made considering the environmental benefits of renewable diesel, the protection of occupational and public health and safety, the interests of consumers, and the potential for economic and regional development. The approval process involved consultation with the Fuel Standards Consultative Committee and was based on the assessment that renewable diesel poses no additional risks compared to traditional diesel while offering significant environmental benefits.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of fuel within Australia, including companies such as Fulie Energy Pty Ltd. This Act sets out the standards for fuel quality, particularly focusing on automotive diesel, and empowers the Minister for Climate Change and Energy to grant approvals that vary these standards in specific circumstances. The approval granted to Fulie Energy Pty Ltd allows them to supply renewable diesel that meets a minimum density value of 765 kg/m3, which is considered compliant with the broader parameters of the Diesel Standard until 31 December 2025. The decision to grant this approval was made considering environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. The Act's application can be extended or restricted through subordinate instruments, providing flexibility in managing fuel quality standards across the Commonwealth.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) is the primary legislative instrument that governs the quality of fuel supplied in Australia. Section 13 of the Act allows for the approval of variations to the fuel quality standards, which in this case, pertains to the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Standard). The approval granted under section 13A of the Act permits Fulie Energy Pty Ltd to supply renewable diesel with a minimum density of 765 kg/m³, which is considered to comply with the parameters specified in the Diesel Standard (section 13A(1)-(2)). This approval is effective until 31 December 2025. The Act imposes several obligations and requirements on the parties it governs. Firstly, the Minister, through the Branch Head of the Liquid Fuels Operations and Analysis Branch, must consult with the Fuel Standards Consultative Committee as mandated by section 24A of the Act. This consultation ensures that the approval aligns with the environmental, health, safety, and consumer interests, as outlined in section 15 of the Act. Secondly, the approval holder, Fulie Energy Pty Ltd, must ensure that the renewable diesel supplied meets the specified parameters and complies with all other relevant provisions of the Act and the Diesel Standard. Fulie must also maintain records and documentation to demonstrate compliance with the approval conditions. Breaching the conditions of the approval or failing to comply with the requirements of the Act may result in civil or criminal consequences. Under section 17A of the Act, the Branch Head has the authority to revoke or suspend the approval if there is a breach. Additionally, section 18 of the Act provides for the imposition of fines, with the maximum penalty for a corporation being $33,000 for each day of the breach. Criminal liability may also arise for individuals who knowingly or recklessly breach the Act, leading to potential imprisonment terms as outlined in section 19. It is crucial for Fulie Energy Pty Ltd to adhere to the approval conditions to avoid these penalties and maintain compliance with the regulatory framework.