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

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au C2023G00007 In force Gazette

Legislation content

 

HEAD OF DIVISION, GAS AND LIQUID FUELS DIVISION

DEPARTMENT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER


NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 FOR VARIATION OF THE FUEL QUALITY STANDARDS (AUTOMOTIVE DIESEL) DETERMINATION 2019 – IOR ENERGY PTY LTD (EXPIRY 31 DECEMBER 2025)

 

I, Michelle Croker, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister for Climate Change and Energy, provide the following information concerning my decision to vary an existing approval under section 13 of the Fuel Quality Standards Act 2000 (the Act). 

Name of approval holder

IOR Energy Pty Ltd (ABN 60 010 504 444)

Details of the approval

The existing approval to IOR Energy Pty Ltd was granted to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination) to permit the supply of diesel specified in the original grant of approval.  

Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval came into force on the date specified in the approval, and remains in force for the period specified in the approval (being until 31 December 2022). 

Details of the variation

Pursuant to paragraph 17D(1) of the Act, the period of effect of the listed approval has been varied in respect of the supply of diesel until 31 December 2025. The approval comes into force at the immediate conclusion of the previously granted approval, being from 1 January 2023 until 31 Dec 2025.

The conditions of the approval have also been updated.

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the approval as provided for in section 15 of the Act for the following reasons:

a)      The protection of the environment

Overall, Eromanga diesel has benign emission characteristics compared to other diesel fuels. IOR’s independent emission testing programme shows that the emissions were much lower than comparable commercial diesel fuel used for underground mine use.

In addition, the use of Eromanga Underground Mining Fuel is geographically limited to underground mining applications in New South Wales and Queensland. Emissions in underground mines are closely regulated by state governments and mining operators. Under these circumstances, it is unlikely that there will be any significant impact on the environment from the use of this fuel.

As outlined in IOR’s previous section 13 variations, aside from its sulfur content, the Commercial Road Customer Fuel is a relatively clean fuel that would contribute to reducing some toxic emissions and the protection of the environment.

b)      The protection of occupational and public health and safety

Monitoring of emissions in underground mines is undertaken to ensure the health of all workers in confined mine environments is protected. Equipment and vehicles using Eromanga Underground Mining Fuel in underground mining applications must meet state emission standards.

In general, high levels of sulfur in diesel increase emissions of particulates into the atmosphere. A number of studies have indicated that diesel particles are mutagenic and carriers of compounds which are suspected of contributing to the rise in cancer cases in city areas with a large proportion of diesel fuelled vehicles. Furthermore, in June 2012, the International Agency for Cancer Research classified Diesel Particulate Matter as a known human carcinogen (Group 1).

As the proposed coverage area for the supply of Commercial Road Customer Fuel is restricted to 300 km from the Eromanga Refinery or from the outlet at Innamincka, South Australia, any adverse impacts on occupational and public health and safety arising from the approval would be limited.

c)       The interests of consumers

It is in the interests of consumers to have a choice of products available for use. Eromanga Underground Mining Fuel provides an alternative to fuels supplied by other companies and is preferred by mine operators for its low emissions.

The introduction of a 10 mg/kg sulfur limit for automotive diesel in January 2009 enabled introduction of ADR80/03 (Euro 5) emission standards for heavy vehicles. The use of diesel containing greater than 10 mg/kg sulfur in vehicles certified to ADR80/03 may affect vehicle warranties and is not recommended. To mitigate any impacts on the interests of consumers, the sale of the Eromanga Underground Mining Fuel and the Commercial Road Customer Fuel is limited to contracted commercial users only. Labelling requirements are also specified in the conditions of approval.

d)      The impact on economic and regional development

IOR’s refineries and plants provide employment opportunities for the local community in regional areas of Queensland, Northern Territory, South Australia and New South Wales. Commercial industries also benefiting from IOR include cattle transporters, long haul freight operators, local shire councils, regional mining and pastoral companies.

The refinery, directly and indirectly, supports approximately 75 full-time jobs, and is the only local fuel supply in several remote towns and projects in the surrounding region.

Decommissioning of the refinery would mean alternative fuel supplies would need to be sourced from terminals on the coast (over 1,000km away) and would have significant adverse impacts on the local region.

 

………………………………………………………………………….

Michelle Croker

Head of Division, Gas and Liquid Fuels Division 

14 December 2022

 

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel sold in Australia, with a focus on protecting the environment, occupational and public health and safety, and the interests of consumers. The Act provides a framework for setting fuel quality standards and establishing mechanisms to enforce compliance with these standards. This legislation was introduced to address the need for consistent and high-quality fuel standards across the country. Enacted by the Parliament of Australia, the Act aims to ensure that fuel sold in Australia meets certain quality standards that protect the environment and public health while also promoting fair competition and consumer choice. The Fuel Quality Standards (Automotive Diesel) Determination 2019 sets out the standards for automotive diesel fuel, and the Fuel Quality Standards Act 2000 allows for variations to these standards under certain conditions, as demonstrated in the notice concerning IOR Energy Pty Ltd's approval variation.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality of fuel available for sale in Australia, ensuring that fuel standards are met to protect the environment, occupational and public health and safety, and consumer interests. The Act applies to entities that supply fuel, including companies like IOR Energy Pty Ltd, which have received specific approvals under the Act to supply certain types of fuel that meet the standards outlined in the Act. In this instance, the Act's application is extended to IOR Energy Pty Ltd, allowing them to supply automotive diesel under specific conditions until 31 December 2025. The geographic reach of the Act is national, with the standards applying across all states and territories in Australia. However, the specific variation in this case pertains to the supply of diesel for underground mining applications in New South Wales and Queensland, demonstrating the Act's ability to apply selectively based on industry and regional needs. The Act allows for exclusions and exemptions through subordinate instruments, but the primary focus remains on maintaining fuel quality to safeguard the environment, health, and consumer interests.

Key Provisions

The notice under section 17A of the Fuel Quality Standards Act 2000 (the Act) involves a variation to an existing approval granted to IOR Energy Pty Ltd, which was initially effective until 31 December 2022. This variation extends the approval period until 31 December 2025 and updates the conditions of the approval (s 17D(1)). The original approval allowed IOR Energy Pty Ltd to supply diesel specified in the approval under the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination). This approval was granted under section 13 of the Act and was effective from its specified date until its expiry (s 13A(1) and (2)). The approval imposes several obligations on IOR Energy Pty Ltd. Firstly, it mandates that the supply of diesel must adhere to the updated conditions specified in the variation. The conditions of the approval likely include requirements related to the quality, composition, and labelling of the diesel fuel to ensure it meets the environmental and safety standards set by the Act. Additionally, IOR Energy Pty Ltd must ensure that the diesel supplied is used only for underground mining applications in New South Wales and Queensland, as the use of this fuel is geographically limited to these regions. Compliance with state emission standards and monitoring of emissions in underground mines is also required to protect occupational and public health and safety. Failure to comply with the conditions of the approval could result in various consequences. Under the Act, breaches may lead to civil or criminal penalties, depending on the severity and intent of the breach. For minor or unintentional breaches, IOR Energy Pty Ltd may face fines, as stipulated under the relevant sections of the Act. For more serious breaches, particularly those involving deliberate non-compliance or significant harm to the environment or public health, the penalties could include substantial fines or even imprisonment. The exact penalties would depend on the specific breach and the discretion of the court. Additionally, the approval holder risks revocation of the approval, which would terminate their authority to supply the specified diesel fuel.

Legal classification tags

Area of Law
Environmental Law
Energy Law
Instrument
Gazette Notice
Concepts
Reporting & Disclosure Obligations
Compliance Obligations
Enforcement Powers
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.