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 – THE TRUSTEE FOR ECO TECH BIO DIESEL UNIT TRUST (EXPIRY 31 DECEMBER 2026)
I, Paula Svarcas, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister for Climate Change and Energy, provide the following information concerning my decision under section 17D of the Fuel Quality Standards Act 2000 (the Act) to vary an existing approval made under section 13 of the Act.
Name of approval holder
The Trustee for Eco Tech Bio Diesel Unit Trust (ABN 77 173 837 246)
Details of the approval
The existing approval to The Trustee for Eco Tech Bio Diesel Unit Trust was granted to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 (Diesel Standard) to permit the supply 5.1% to 20% biodiesel and diesel blends (B20).
This approval extends the variation to the Diesel Standard so that fuel containing:
- a maximum biodiesel content of up to 20%
- a maximum density value of 860 kg/m3
is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of B20 biodiesel blends.
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 2026).
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 with regard to matters specified under section 15 of the Act, in particular:
(a) The protection of the environment
Overall, the B20 blends supplied will have life-cycle greenhouse gas emissions reductions from replacing mineral diesel with biodiesel, and negligible impacts on the environment.
Tailpipe emissions from diesel-biodiesel blend use, compared to mineral 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% biodiesel 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
The supply of B20 supports the interest of commercial consumers by providing an additional low carbon fuel option for commercial use. Diesel-biodiesel blends are a cheaper alternative to renewable diesel for companies looking to take initial steps to reduce greenhouse gas emissions from fuel use.
As required under the original conditions of approval, the diesel-biodiesel blends may only be supplied under contract to commercial users and not at forecourts. Fuel dispensers must also be clearly labelled to advise consumers that the diesel contains biodiesel to address any potential warranty issues.
(d) The impact on economic and regional development
As the level of biodiesel has been capped at 5% in the Diesel Standard, industry cannot lawfully supply blends containing greater than 5% biodiesel. Granting the variation enables 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.
………………………………………………………………………….
Paula Svarcas
Head of Division
Gas and Liquid Fuels
10 December 2024
Overview
The Fuel Quality Standards Act 2000 was enacted to ensure that fuel quality standards are met to protect the environment, public health, and safety, while also considering economic and regional development. This legislation, enacted by the Parliament of Australia, addresses the need for regulating fuel quality to mitigate environmental impacts and promote sustainable energy practices. The Act provides a framework for setting and varying fuel quality standards, ensuring that fuels meet specific criteria to reduce emissions and protect consumers. In this context, the Fuel Quality Standards (Automotive Diesel) Determination 2019 was amended to permit the supply of biodiesel blends containing up to 20% biodiesel, aiming to enhance the availability of low-carbon fuel options and support the biodiesel industry's growth and sustainability. The policy objective of this variation is to provide a regulated pathway for the supply of biodiesel blends, balancing environmental benefits with economic and regional development considerations.
Scope and Application
The Fuel Quality Standards Act 2000, under which this variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 has been approved, applies to entities engaged in the supply of automotive diesel fuel within Australia, specifically targeting the composition and quality standards of such fuel. The Act pertains to the biodiesel content and density of diesel fuel supplied in the market, ensuring compliance with environmental, health, and safety standards. The approval granted under section 13 of the Act extends to The Trustee for Eco Tech Bio Diesel Unit Trust and authorises the supply of blends containing between 5.1% and 20% biodiesel, thereby allowing for a broader range of biodiesel content in automotive diesel than the standard 5% limit. This variation is intended to support environmental protection by reducing greenhouse gas emissions and to promote economic development within the biodiesel industry. The approval is in force until 31 December 2026, and it includes specific conditions such as the mandatory labelling of fuel dispensers and restrictions on the supply of these blends to commercial users only, excluding general retail sale. The Act's application is national, impacting the entire Australian market for automotive diesel fuel.
Key Provisions
The primary sections relevant to this notice under the Fuel Quality Standards Act 2000 are section 13, which governs the approval of variations to fuel quality standards, and section 17A, which outlines the process for varying such standards. Section 17D allows the delegate of the Minister for Climate Change and Energy, in this case Paula Svarcas, Head of Division Gas and Liquid Fuels, to grant an approval under section 13. This specific approval, as noted in section 17A, concerns the variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 to permit the supply of biodiesel and diesel blends (B20) with a maximum biodiesel content of up to 20%. The variation is set to remain in force until 31 December 2026, as stated in the approval details.
The obligations imposed by this Act on the parties involved are quite specific. The Trustee for Eco Tech Bio Diesel Unit Trust must ensure that the biodiesel blends supplied comply with the approved parameters, including the maximum biodiesel content and density value. The blends can only be supplied under contract to commercial users, and not at forecourts, as outlined in the conditions of the approval. Additionally, fuel dispensers must be clearly labelled to inform consumers that the diesel contains biodiesel, to mitigate any potential warranty issues.
The Act also establishes various consequences for non-compliance. While the specific penalties for breaching the conditions of the approval are not detailed in the notice, it is reasonable to infer that such breaches could lead to the revocation of the approval under section 17C of the Act. This could result in the cessation of the approved activities, including the supply of B20 biodiesel blends. Moreover, any environmental or health impacts caused by non-compliant fuel could lead to additional civil or criminal liability under other relevant Australian legislation. The potential penalties for such breaches could include substantial fines and, in severe cases, imprisonment.