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 – SUPPLY OF DIESEL-BIODIESEL BLENDS (B20) – EXPIRY 31 DECEMBER 2024
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 holders
- Bioworks Australia Pty Ltd (ABN 23 116 632 136), granted on 19 December 2012
- Consolidated Biodiesel Pty Ltd acting as trustee for Eco Tech Biodiesel Unit Trust (ABN 77 173 837 246), granted on 27 June 2012
- Green Power Solutions Pty Ltd (ABN 86 141 261 252) , granted on 20 April 2010
- Mogas Regional Pty Ltd (ABN 79 111 402 210), granted on 21 August 2009
- The Biodiesel Station Pty Ltd (ABN 71 118 827 900), granted on 26 February 2009
Details of the approval
The existing approval to bp Australia Pty Ltd was granted to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination) to permit the supply of diesel-biodiesel blended (B20) fuels 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 B20 until 31 December 2024. The approval comes into force at the immediate conclusion of the previously granted approval, being from 1 January 2023 until 31 December 2024, or until a B20 diesel biodiesel standard has been made, whichever occurs first.
The conditions of the approval have also been updated to reduce duplicative reporting conditions.
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
Tailpipe emissions from diesel-biodiesel blend use, compared to diesel, will have both positive and negative impacts on air quality as the level of biodiesel in the blend increases. In general, emissions of oxides of nitrogen increase, but particulate matter, hydrocarbons and carbon monoxide emissions all decrease.
b) The protection of occupational and public health and safety
Diesel with up to 20 per cent biodiesel content has been shown to be similar to mineral diesel. Its impact on occupational health and safety should be no greater than diesel already supplied to the market.
c) The interests of consumers
As required under the conditions of the previous approvals, fuel dispensers must be clearly labelled to advise consumers that the diesel contains biodiesel and the percentage content of biodiesel.
d) The impact on economic and regional development
Biodiesel blends are already being supplied to the market and the approvals are required to allow suppliers to continue supplying blends to existing and potential customers.
As the level of biodiesel allowed in diesel has been capped at five per cent, the industry cannot legally supply blends higher than five per cent. Granting this variation provides blends greater than five per cent to be supplied, which will support the growth of the Australian biodiesel industry.
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Michelle Croker
Head of Division, Gas and Liquid Fuels Division
19 December 2022
Overview
The Fuel Quality Standards Act 2000 was enacted to ensure that fuel supplied in Australia meets certain quality standards, which in turn protects the environment, public health and safety, and supports economic development. This Act was introduced to address the need for regulation of fuel quality to mitigate environmental harm and ensure consumer protection. The Act is administered by the Australian Parliament, and one of its policy objectives is to regulate the supply of fuel in a manner that balances environmental protection with economic considerations. In December 2022, Michelle Croker, as the delegate of the Minister for Climate Change and Energy, varied an existing approval under section 13 of the Act to extend the period for the supply of diesel-biodiesel blends (B20) until 31 December 2024. This decision was made after consultation with the Fuel Standards Consultative Committee and aims to balance the environmental impact of increased biodiesel content in diesel with the need to support the Australian biodiesel industry and ensure continued supply to consumers.
Scope and Application
The notice under section 17A of the Fuel Quality Standards Act 2000 pertains to a variation in the approval for the supply of diesel-biodiesel blends (B20) until 31 December 2024. The Act applies to entities that have been granted specific approvals to supply biodiesel blends, including Bioworks Australia Pty Ltd, Consolidated Biodiesel Pty Ltd acting as trustee for Eco Tech Biodiesel Unit Trust, Green Power Solutions Pty Ltd, Mogas Regional Pty Ltd, and The Biodiesel Station Pty Ltd. The scope of the Act includes the regulation of fuel quality standards for automotive diesel, specifically addressing the supply of diesel-biodiesel blends up to 20 per cent biodiesel content. The geographic reach of this legislation is national, as it pertains to the Australian market and is administered by the Commonwealth. The Act extends its application through subordinate instruments, which include the Fuel Quality Standards (Automotive Diesel) Determination 2019. The variation extends the approval period from the previous end date of 31 December 2022 to 31 December 2024, contingent on the establishment of a B20 diesel biodiesel standard. The conditions of the approval have been updated to streamline reporting requirements.
Key Provisions
The main operative sections of the Fuel Quality Standards Act 2000 (the Act) relevant to this Notice include section 13 (approval of variations to fuel quality standards), section 15 (granting of approvals), and section 17A (variation of existing approvals). Section 13 permits the Head of Division to vary existing approvals related to fuel quality standards, while section 15 enables the grant of these approvals. Section 17A allows for the variation of these approvals to extend their duration or alter their conditions. Under this Notice, the Head of Division has varied the existing approval for the supply of diesel-biodiesel blends (B20) to extend its period of effect until 31 December 2024 and to reduce duplicative reporting conditions.
The obligations imposed by the Act on the parties governed by this Notice include providing clear labelling of fuel dispensers to inform consumers that the diesel contains biodiesel and the percentage content of biodiesel. This is in line with section 15(2) of the Act, which requires conditions to be imposed on the approvals to ensure compliance with the Act. Additionally, the approval holders must adhere to the updated conditions of the approval, which now have reduced duplicative reporting requirements, ensuring that the necessary information is still provided to the relevant authorities without unnecessary duplication.
Any breach of the conditions of the approval, or failure to comply with the requirements of the Act, may result in civil or criminal penalties. Under the Act, an approval holder who fails to comply with the conditions of their approval may be subject to fines, with the maximum penalty depending on the nature and severity of the breach. Additionally, under section 16 of the Act, it is an offence to contravene the Act or the conditions of an approval, and such an offence may result in a fine of up to $22,200 for a corporation. Furthermore, continued non-compliance may lead to the revocation of the approval, preventing the holder from supplying the specified fuel blends.