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 2026)

Overview

The Fuel Quality Standards Act 2000 was enacted to establish and regulate the quality standards for fuels supplied in Australia, aiming to protect the environment, public health, and consumer interests, while also considering economic and regional development. The Act provides the framework for the establishment of fuel quality standards and the approval of variations to these standards by the relevant authorities. Mobil Oil Australia Pty Ltd has been granted a variation approval to supply biodiesel blends in automotive diesel under this Act. This approval, which extends until 31 December 2026, allows for the supply of blends containing up to 20% biodiesel, subject to specific conditions to mitigate environmental and health impacts and to inform consumers appropriately. The decision to approve this variation was made considering the environmental benefits of reducing greenhouse gas emissions, the impact on air quality, occupational and public health safety, consumer interests, and the potential for economic and regional development in the biodiesel industry.

Scope and Application

The Fuel Quality Standards Act 2000 applies to fuel suppliers, particularly those involved in the supply of automotive diesel, and their practices within Australia. The Act regulates the quality standards for fuel supplied to the public and commercial entities, ensuring that fuel sold within the country meets certain environmental, health, and safety standards. The legislation extends its reach across the entire Commonwealth of Australia, applying uniformly regardless of state or territory boundaries. However, certain exclusions and exemptions might apply depending on specific conditions and the nature of the fuel supplied. This particular approval, issued under section 13 of the Act, allows Mobil Oil Australia Pty Ltd to supply biodiesel-diesel blends (B20) that meet specified parameters, such as a maximum biodiesel content of up to 20%, a maximum density value of 860 kg/m3, and a minimum derived cetane number of 46. This approval is effective from the date of the notice until 31 December 2026, providing a temporary variation to the existing Fuel Quality Standards (Automotive Diesel) Determination 2019. The decision to grant this approval was influenced by factors such as environmental protection, occupational and public health and safety, consumer interests, and the potential economic benefits of supporting the biodiesel industry.

Key Provisions

Section 17A of the Fuel Quality Standards Act 2000 (the Act) allows for the variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019, which is currently held by Mobil Oil Australia Pty Ltd (ABN 88 004 052 984). Mobil Oil Australia Pty Ltd has been granted an approval to supply biodiesel and diesel blends (B20), which contains a maximum biodiesel content of up to 20%, a maximum density value of 860 kg/m3, and a minimum derived cetane number of 46, and is deemed to comply with the relevant parameters specified in the Diesel Standard. This approval was granted under section 13 of the Act and will remain in force until 31 December 2026, as stated in section 17D of the Act. Mobil Oil Australia Pty Ltd, as the approval holder, is subject to certain obligations under the Act. Firstly, the biodiesel-diesel blends can only be supplied under contract to commercial users and not at forecourts. This restriction ensures that the fuel is used for commercial purposes and not for private use. Secondly, fuel dispensers must be clearly labelled to inform consumers that the diesel contains biodiesel. This is to prevent any potential warranty issues that may arise from the use of biodiesel-diesel blends. Failure to comply with the provisions of the Act and the conditions of the approval may result in civil and criminal consequences. Section 17E of the Act provides that a contravention of the Act or the approval conditions is an offence and may be subject to penalties as outlined in the Act. The maximum penalties for these offences can include fines and imprisonment, depending on the severity of the breach. The decision to grant the approval to Mobil Oil Australia Pty Ltd was based on several factors. Firstly, the B20 blends are expected to have life-cycle greenhouse gas emissions reductions compared to mineral diesel, which will contribute to environmental protection. Secondly, the use of biodiesel-diesel blends is not expected to have a greater impact on occupational health and safety compared to mineral diesel. Thirdly, the supply of B20 supports the interests of commercial consumers by providing a low carbon fuel option for commercial use. Finally, granting the variation will enable blends of biodiesel from 5.1% to 20% to be supplied, which can support the growth and sustainability of the biodiesel industry and reduce barriers to biofuel use. In conclusion, the variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 for Mobil Oil Australia Pty Ltd is intended to provide a low carbon fuel option for commercial use, while also supporting the growth and sustainability of the biodiesel industry. The approval holder is subject to certain obligations and conditions, and failure to comply with the Act and the approval conditions may result in civil and criminal consequences. The decision to grant the approval was based on several factors, including environmental protection, occupational health and safety, consumer interests, and economic and regional development.