Notice under section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – Greentech Fuel Pty Ltd (Expiry 31 December 2025)

Overview

The Fuel Quality Standards Act 2000, enacted by the Parliament of Australia, was introduced to establish and enforce fuel quality standards for various types of fuel, including automotive diesel. This Act provides a framework for ensuring that fuels meet specific quality standards to protect the environment, public health, and safety. The Act also allows for the variation of fuel quality standards through approvals granted by the relevant authority, such as the Department of Climate Change, Energy, the Environment and Water. In this instance, an approval was granted under section 13 of the Act to GreenTECH Fuel Pty Ltd to vary the fuel standard for diesel, specifically allowing for the supply of renewable diesel with a minimum density value of 765 kg/m3 for off-road applications and road transport operations. The approval aims to balance environmental benefits, such as lower greenhouse gas emissions and particulate matter, with the protection of occupational and public health, as well as supporting economic and regional development by increasing access to renewable diesel in Western Australia.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the supply of fuel within Australia and its territories, governing the standards and quality of fuel to protect the environment, public health, and safety. This legislation applies to entities involved in the supply of fuel, including companies like GreenTECH Fuel Pty Ltd, which must comply with the standards set by the Act. The Act provides for the establishment of fuel quality standards through subordinate instruments, such as the Fuel Quality Standards (Automotive Diesel) Determination 2019, which specifies the parameters for diesel quality. The Act extends its application across the Commonwealth and provides for variations and approvals to accommodate specific circumstances, as demonstrated by the approval granted to GreenTECH Fuel Pty Ltd under section 13 of the Act. This approval allows for a deviation from the standard diesel specifications to accommodate the supply of renewable diesel, which has environmental and economic benefits. The approval process ensures that such variations align with the overarching objectives of the Act, including environmental protection and public safety. The Fuel Quality Standards Act 2000 thus ensures that fuel supplied within Australia meets certain quality standards, while also allowing for flexibility to innovate and adopt cleaner fuel options.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) authorises the Branch Head of the Liquid Fuels Operations and Analysis Branch to vary fuel quality standards under section 13. In this instance, the approval modifies the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Standard) to allow GreenTECH Fuel Pty Ltd to supply renewable diesel with a minimum density value of 765 kg/m3, which will be considered compliant with the Diesel Standard for off-road and road transport applications (section 13). This approval is effective from the date of approval and will remain in force until 31 December 2025 (section 13A(1) and (2)). GreenTECH Fuel Pty Ltd, as the approval holder, is obligated to ensure that the renewable diesel supplied meets the specified minimum density value and complies with the parameters outlined in the Diesel Standard. The company must adhere to the environmental, occupational, and public health and safety considerations stipulated in the Act, which include ensuring that the renewable diesel does not pose additional risks compared to traditional diesel in terms of handling, storage, and distribution. This includes ensuring that no additional precautions are required for its use in engines designed for lower-density diesel. Additionally, GreenTECH is required to use existing protocols for the management and distribution of the fuel, ensuring that it does not introduce any new hazards or require different firefighting measures. Failure to comply with the conditions of the approval or the provisions of the Act may result in various consequences. Under section 15 of the Act, the Branch Head can cancel the approval if it is found that the supply of renewable diesel does not meet the environmental, health, safety, or consumer interests as outlined. Additionally, breaches of the Act can lead to civil or criminal penalties, although the specific penalties are not detailed in this notice. The Act provides for penalties for non-compliance with fuel quality standards, which may include fines and imprisonment, although the exact penalties are not specified in the current notice. Overall, the approval aims to facilitate the use of renewable diesel by GreenTECH Fuel Pty Ltd, supporting environmental objectives, public health and safety, and economic development in Western Australia. By allowing the supply of renewable diesel with specific quality parameters, the approval seeks to promote the use of a cleaner fuel alternative that can help reduce greenhouse gas emissions and assist in meeting the Australian Government's emissions reduction targets.