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

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

Legislation au C2024G00444 In force Gazette

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BRANCH HEAD, LIQUID FUELS BRANCH

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 – MACQUARIE BANK LIMITED (EXPIRY 31 DECEMBER 2025)

 

I, Jennifer Anne, Branch Head, Liquid Fuels Branch, delegate of the Minister, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act). 

Name of approval holder

Macquarie Bank Limited (ABN 46 008 583 542)

Details of the approval

This approval varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (Diesel Standard), so that fuel containing:

  • a minimum density value of 765 kg/m3 

is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of renewable diesel to customers under contract for off road applications and road transport operations. 

Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval comes into force on the date of approval and remains in force for the period specified in the approval (being until 31 December 2025). 

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

Decreasing fuel density is not considered a parameter with direct environmental impacts. Therefore, renewable diesel does not warrant additional precautions to handling, storage or distribution aspects from traditional diesel practices, with respect to risks to the environment.

More broadly considering the combustion of the fuel, renewable diesel has several environmental benefits over mineral diesel owing to some of its properties. Given its highly paraffinic nature, there are little-to-no aromatics in the fuel, which translates to more complete combustion and lower particulate emissions. It is a low carbon-emitting alternative to mineral diesel and has the benefit of lower life-cycle greenhouse gas (GHG) emissions.

(b) The protection of occupational and public health and safety

The characteristics of renewable diesel are similar to those of mineral diesel. Therefore, there are no additional precautions required for its handling, storage, or distribution beyond those for mineral diesel. There are no known additional hazards for human exposure (inhalation and ingestion remain key hazards as for mineral diesel), requirements for firefighting measures, or differences in material stability and reactivity. As such, existing protocols for the handling of fuel and management can be utilised.

Considering the comparable characteristics to existing mineral diesel, the department does not anticipate any increased occupational and public health and safety risks to arise from the use of these fuels.

(c) The interests of consumers

The desire for domestic industry and corporations to decarbonise has continued to gather momentum. Consumers using these fuels can reduce overall emissions and achieve their planned pathways to meet net zero GHG emission targets. The use of renewable diesel as a suitable replacement to traditional mineral diesel will assist in reaching the national commitment to reduce emissions by 43% below 2005 levels by 2030.

(d) The impact on economic and regional development

A section 13 approval will allow Macquarie to supply renewable diesel in the Australian market for users across the supply chain to develop the experience necessary to grow a market for this fuel. This is important because renewable diesel is likely to be an essential tool for decarbonising the Australian economy in the next decade.

Establishing a demand of renewable diesel in Australia allows for the development and growth of a local supply chain, including the potential emergence of new suppliers and distribution networks.

Macquarie is intending to supply mining and construction sites across New South Wales and Victoria. The approval of this application will allow further market development by providing more options for businesses in these industries to lower their carbon emissions through renewable diesel use.

 

 

 

Jennifer Anne

Branch Head, Liquid Fuels Branch 

17 July 2024

 

 

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to ensure that fuel quality standards are met to protect the environment, occupational and public health and safety, and consumer interests. It establishes a framework for the regulation of fuel quality standards and provides the mechanism for variations to these standards, such as the one in question involving Macquarie Bank Limited. This legislation fills the gap by providing a clear legal basis for approving variations to fuel quality standards that meet specific policy objectives, including environmental protection, health and safety, consumer benefits, and economic development. The approval granted under section 13 of the Act to Macquarie Bank Limited for varying the fuel standard for diesel is intended to facilitate the supply of renewable diesel, which offers significant environmental benefits and supports the national commitment to reducing greenhouse gas emissions. This approval helps in fostering a market for renewable diesel, contributing to the growth of a sustainable fuel supply chain in Australia.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the regulation of fuel quality in Australia, ensuring that fuels supplied for use in vehicles and equipment meet certain standards. This legislation primarily targets entities involved in the supply of fuels, including renewable diesel, and their customers in various industries. Macquarie Bank Limited, as an approval holder under this Act, has been granted a specific exemption to supply renewable diesel with a minimum density value of 765 kg/m3 for off-road applications and road transport operations until 31 December 2025. The Act extends to the whole of Australia and can be further regulated through subordinate instruments. Macquarie Bank's approval facilitates the supply of renewable diesel, contributing to environmental protection, occupational and public health safety, consumer interests, and economic and regional development, particularly in the mining and construction sectors across New South Wales and Victoria.

Key Provisions

The key provision of this legislation (C2024G00444) involves a variation of the fuel standard for diesel as specified in the Fuel Quality Standards (Automotive Diesel) Determination 2019, granted to Macquarie Bank Limited. Under section 13 of the Fuel Quality Standards Act 2000, Macquarie Bank Limited has been granted an approval to supply renewable diesel to customers under contract for off-road applications and road transport operations. This variation allows for a minimum density value of 765 kg/m3 of renewable diesel to be considered compliant with the Diesel Standard (section 13A). This approval is effective from the date of issuance and will remain in force until 31 December 2025. The Act imposes several obligations on the parties it governs. Macquarie Bank Limited, as the approval holder, must ensure that the renewable diesel supplied complies with the specified parameters. This includes maintaining records of the fuel's density and other relevant properties to demonstrate compliance with the Diesel Standard. Additionally, Macquarie must adhere to existing protocols for the handling, storage, and distribution of fuel, as there are no additional hazards identified for renewable diesel compared to mineral diesel. The department is also required to consult with the Fuel Standards Consultative Committee, as mandated by section 24A of the Act, before granting such approvals. Failure to comply with the provisions of the Act or the terms of the approval may result in civil or criminal consequences. While the specific penalties are not detailed in this legislation, breaches of fuel quality standards under the Act can typically result in significant fines and potential criminal charges for individuals and corporations. The penalties for non-compliance can vary depending on the severity and frequency of the breach, but they are intended to ensure adherence to the standards set forth to protect the environment, public health, and safety. The department retains the authority to enforce these standards and take appropriate action against any party found in breach.

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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.