Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – ProGreen Biofuels Pty Ltd (Expiry 31 December 2026)

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuels sold in Australia with the aim of protecting the environment, public health and safety, and consumer interests, while also considering economic and regional development. The Act provides a framework for establishing and varying fuel quality standards and is administered by the Department of Climate Change, Energy, the Environment and Water. In a recent notice under section 17A of the Act, Cris Cano, the Branch Head of Liquid Fuels Operations and Analysis Branch, delegated by the Minister for Climate Change and Energy, has granted an approval to ProGreen Biofuels Pty Ltd for varying the fuel standard for automotive diesel. This approval allows the supply of diesel blends containing up to 20% biodiesel, with specific parameters for biodiesel content, density, and cetane number, until 31 December 2026. The decision was made after consulting with the Fuel Standards Consultative Committee and considers the environmental benefits of reduced greenhouse gas emissions, the negligible impact on occupational and public health and safety, the provision of a low-carbon fuel option for commercial users, and the potential for supporting the biodiesel industry and reducing barriers to biofuel use.

Scope and Application

The Fuel Quality Standards Act 2000, through the Notice issued by the Branch Head of the Liquid Fuels Operations and Analysis Branch of the Department of Climate Change, Energy, the Environment and Water, grants an approval to ProGreen Biofuels Pty Ltd for varying the fuel standard for automotive diesel. This approval allows the supply of diesel blends containing up to 20% biodiesel, provided that the blends meet specific parameters such as a maximum density value of 860 kg/m3 and a minimum derived cetane number of 46. This approval applies specifically to ProGreen Biofuels Pty Ltd and is effective until 31 December 2026. The legislation applies to the supply of biodiesel and diesel blends to commercial users under contract, and not for general retail sale at forecourts. Dispensers supplying these blends must be clearly labelled to inform consumers of the biodiesel content. This variation in the fuel quality standard is aimed at supporting environmental protection, occupational and public health and safety, consumer interests, and the economic development of the biodiesel industry, while ensuring that the biodiesel content does not exceed 20%.

Key Provisions

The key operative sections of the legislation are section 13 and 17A of the Fuel Quality Standards Act 2000 (the Act), and the variation granted under this authority is detailed in the notice issued by Cris Cano, Branch Head of the Liquid Fuels Operations and Analysis Branch of the Department of Climate Change, Energy, the Environment and Water. Section 13 of the Act allows for the approval of variations to the fuel quality standards set out in determinations made under the Act, while section 17A enables the Branch Head to make such variations by notice. The specific variation approved under this notice permits ProGreen Biofuels Pty Ltd to supply diesel containing up to 20% biodiesel, provided it meets the specified parameters (section 13A(1)-(2)). ProGreen Biofuels Pty Ltd, as the approval holder, is required to comply with the conditions set out in the notice, which include the maximum biodiesel content of up to 20%, a maximum density value of 860 kg/m3, and a minimum derived cetane number of 46. Furthermore, the supply of these blends must be strictly to commercial users under contract, and fuel dispensers must be clearly labelled to inform consumers of the biodiesel content. These obligations are designed to ensure that the supply of the biodiesel blends does not adversely affect occupational and public health and safety, and to protect consumers by preventing potential warranty issues. Breaching the conditions of the approval, or supplying fuel that does not comply with the specified parameters, could lead to enforcement actions under the Act. While the specific offences and penalties are not detailed in the notice, violations of the Act or determinations made under it generally attract civil and/or criminal penalties. These can include fines and, in the case of serious or repeated breaches, imprisonment. The maximum penalties would depend on the specific provisions of the Act or determination breached, but they can be substantial, reflecting the seriousness of non-compliance with fuel quality standards. It is therefore crucial for ProGreen Biofuels Pty Ltd to adhere strictly to the terms of the approval to avoid any legal repercussions.