Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – Mobil Oil Australia Pty Ltd (Expiry 31 December 2024)

Overview

The Fuel Quality Standards Act 2000, enacted to regulate the quality of fuel supplied in Australia, was amended by the Fuel Quality Standards Amendment (Biodiesel and Bioethanol) Act 2017, to address the need for greater flexibility in the supply of biodiesel-blended fuels. This amendment allows for the variation of existing fuel quality standards to accommodate the supply of higher biodiesel blends in diesel. The Act, administered by the Department of Climate Change, Energy, the Environment and Water, aims to balance environmental protection, public health, and economic considerations in the fuel industry. The policy objective is to facilitate the use of biodiesel blends in a manner that supports environmental sustainability, public and occupational health, and regional economic development while ensuring consumers are adequately informed. In this context, the Fuel Quality Standards (Automotive Diesel) Determination 2019 was varied to extend the approval period for Mobil Oil Australia Pty Ltd to supply diesel-biodiesel blended fuels until 31 December 2024. This variation was granted to support the growth of the Australian biodiesel industry and to provide flexibility in the supply of biodiesel blends that exceed the current legal limit of five per cent. The decision was made in consultation with the Fuel Standards Consultative Committee, ensuring that the variation aligns with the objectives of the Act and addresses environmental, health, and economic factors.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of automotive fuels within Australia. The legislation primarily concerns the standards and quality of fuels, including diesel, and the approval processes for variations to these standards. The Act applies to companies like Mobil Oil Australia Pty Ltd, which are granted specific approvals to supply certain types of fuel under particular conditions. This includes the supply of diesel-biodiesel blended fuels, where the biodiesel content exceeds the standard five per cent limit. The Act operates at the Commonwealth level and regulates the quality of fuels across the nation, ensuring they meet environmental and safety standards. However, the Act does not explicitly state any exclusions or thresholds in the provided text, but the approval granted is subject to conditions aimed at mitigating any negative impacts on air quality, occupational and public health, consumer interests, and economic development. The Act also allows for the extension or restriction of its application through subordinate instruments, such as the specific approval granted to Mobil Oil Australia Pty Ltd, which has been varied to allow the supply of B20 until 31 December 2024.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) governs the quality of fuel supplied in Australia, and under section 17A, the Head of Division, Gas and Liquid Fuels Division, delegate of the Minister for Climate Change and Energy, can vary existing approvals granted to fuel suppliers. In this case, Mobil Oil Australia Pty Ltd’s approval to supply B20 diesel-biodiesel blends has been varied until 31 December 2024 under section 17D(1) of the Act, extending the original approval period that was set to expire on 31 December 2022 (sections 13A(1) and (2)). The variation reduces duplicative reporting conditions, streamlining compliance for Mobil Oil Australia Pty Ltd. The Act imposes several obligations on entities such as Mobil Oil Australia Pty Ltd. Firstly, they must ensure that the fuel supplied meets the standards set out in the Diesel Determination, specifically for the B20 blend. Secondly, they are required to adhere to the new conditions of their approval, including updated reporting requirements. Mobil Oil Australia Pty Ltd must also ensure that the diesel biodiesel blends are only supplied under contract to commercial users and not at forecourts, and that fuel dispensers are clearly labelled to inform consumers of the biodiesel content. This is to prevent potential warranty issues and ensure that consumers are aware of the fuel composition. Failure to comply with the provisions of the Act or the conditions of the approval may result in various consequences. Under the Act, breaches of the approval conditions or the determination can lead to enforcement actions. While specific offences and penalties are not detailed in the notice, the Act provides for both civil and criminal penalties. Civil penalties can include fines, while criminal penalties can include imprisonment, reflecting the seriousness of non-compliance with fuel quality standards. The exact penalties would depend on the specific breach and the discretion of the court. In summary, the variation of Mobil Oil Australia Pty Ltd’s approval under the Fuel Quality Standards Act 2000 extends their ability to supply B20 diesel-biodiesel blends until 31 December 2024 and modifies their reporting requirements. The obligations imposed by the Act require Mobil Oil Australia Pty Ltd to ensure compliance with fuel standards, supply conditions, and labelling requirements. Non-compliance with these obligations can result in civil or criminal penalties, highlighting the importance of adhering to the terms of the approval and the Act.