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

Overview

The Fuel Quality Standards Act 2000, enacted to regulate the quality of fuel sold in Australia, has been amended through a notice issued by Michelle Croker, Head of the Gas and Liquid Fuels Division of the Department of Climate Change, Energy, the Environment and Water. This variation notice extends the approval granted to Viva Energy Australia Pty Ltd to supply diesel blended with up to 20% biodiesel (B20) until 31 December 2024. The primary objectives of this amendment include protecting the environment by managing the trade-off between increased nitrogen oxide emissions and decreased particulate matter and other emissions, safeguarding occupational and public health and safety by ensuring that biodiesel blends do not pose greater risks than conventional diesel, supporting consumer interests by ensuring clear labelling of biodiesel content to prevent warranty issues, and promoting economic and regional development by enabling the continued supply of higher biodiesel blends, which supports the growth of the Australian biodiesel industry. The decision was made in consultation with the Fuel Standards Consultative Committee and aligns with the policy objectives of the Act as outlined in the legislation.

Scope and Application

The Fuel Quality Standards Act 2000, as amended and applied through the Fuel Quality Standards (Automotive Diesel) Determination 2019, governs the quality standards for diesel and biodiesel blends supplied in Australia. This Act applies to entities involved in the production, distribution, and supply of automotive diesel, including companies like Viva Energy Australia Pty Ltd, which are authorised to supply specified blends of diesel and biodiesel. The Act extends across the Commonwealth and is enforced through the Department of Climate Change, Energy, the Environment and Water. The Act's provisions can be modified through subordinate instruments, such as determinations and approvals, which allow for adjustments to fuel quality standards based on environmental, health, safety, and economic considerations. This specific notice details a variation in the approval granted to Viva Energy Australia Pty Ltd, extending the period of effect until 31 December 2024 and modifying the maximum density of the approved diesel-biodiesel blend. This decision was made in consultation with relevant stakeholders, ensuring the balance between environmental protection, health and safety, consumer interests, and economic development.

Key Provisions

The notice issued under section 17A of the Fuel Quality Standards Act 2000 pertains to the variation of an existing approval held by Viva Energy Australia Pty Ltd, which originally allowed the supply of diesel-biodiesel blended (B20) fuels. The approval, initially granted under section 13 of the Act, enabled Viva Energy to supply these fuels until 31 December 2022. Section 17D(1) of the Act has been invoked to extend the approval period until 31 December 2024, or until a B20 diesel biodiesel standard is established, whichever comes first. Additionally, the maximum density of the diesel fuel has been adjusted to 860 kg/m3. The variation also includes updated conditions to streamline reporting requirements and eliminate redundancies. The obligations imposed by this Act on Viva Energy Australia Pty Ltd include adhering to the new approval conditions, ensuring the supply of diesel-biodiesel blends does not exceed the specified maximum density, and maintaining clear labelling on fuel dispensers to inform consumers of the biodiesel content. This labelling is crucial to mitigate potential warranty issues that might arise from using biodiesel blends. The Act also requires Viva Energy to ensure that these blends are only supplied under contract to commercial users, and not available at forecourts. These conditions are designed to protect the environment, public health and safety, consumer interests, and to support regional economic development. Failure to comply with the provisions of the Act or the terms of the approval could lead to several consequences. While the notice does not explicitly state the penalties for non-compliance, the Act generally provides for both civil and criminal penalties for breaches of its provisions. Civil penalties can include fines up to $22,200 for individuals and $111,000 for corporations, while criminal penalties can result in fines up to $1,110,000 and/or imprisonment for up to five years for serious offences. These penalties are intended to enforce compliance and uphold the standards set forth by the Act.