Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Conventional Diesel) Determination 2025 – BP Australia Pty Ltd (Expiry 31 December 2028)

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel supplied in Australia, aiming to protect the environment, ensure the safety of consumers and workers, and support economic development. The Act allows for the establishment of fuel quality standards and the variation of these standards through approvals granted to industry participants. The Department of Climate Change, Energy, the Environment and Water, acting under the authority delegated by the Minister for Climate Change and Energy, exercises these powers. The policy objective of the Act is to facilitate the supply of cleaner, more sustainable fuels while ensuring compatibility with existing fuel specifications and consumer safety. In this context, a recent approval granted to bp Australia Pty Ltd allows for the supply of diesel-biodiesel blends containing up to 5% biodiesel, providing a modest reduction in life-cycle greenhouse gas emissions and supporting local biodiesel producers. This variation aligns with broader environmental and economic goals, promoting the use of more sustainable fuels in Australia.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality standards of fuel supplied in Australia, with the Act applying to all entities involved in the supply of fuel within the Commonwealth. The notice under section 17A of this Act pertains specifically to bp Australia Pty Ltd, a company approved to supply conventional diesel with a biodiesel blend containing up to 5% biodiesel. This approval is in accordance with the Fuel Quality Standards (Conventional Diesel) Determination 2025 and is effective until 31 December 2028. The approval process involved consultation with the Fuel Standards Consultative Committee as mandated by section 24A of the Act, ensuring that the decision aligns with broader environmental, health, safety, and economic considerations. The approval is intended to facilitate modest reductions in life-cycle greenhouse gas emissions, maintain safety standards, support local biodiesel producers, and provide consumers with more sustainable fuel options, without imposing undue economic burdens or operational challenges on vehicle engines.

Key Provisions

The notice under section 17A of the Fuel Quality Standards Act 2000 (the Act) outlines a decision to vary an existing approval held by bp Australia Pty Ltd (ABN 53 004 085 616) (sections 1, 2). This variation permits the supply of diesel-biodiesel blends containing up to 5% biodiesel (B5) under the Fuel Quality Standards (Conventional Diesel) Determination 2025. Specifically, the variation allows for fuel with a maximum biodiesel content of 5% v/v, a maximum density of 852 kg/m3, and a minimum derived cetane number of 46 to comply with the relevant parameters specified in the Conventional Diesel Standard (section 1). This approval is effective from the date of approval and will remain in force until 31 December 2028 (section 1). The obligations imposed by the Act on bp Australia Pty Ltd include adhering to the specified parameters of the B5 blend, such as the biodiesel content, density, and cetane number. The company must also ensure that the supply of B5 does not adversely affect the environment, occupational health and safety, or public health. This includes maintaining safety and handling protocols similar to those used for conventional diesel (section 2). Additionally, bp Australia Pty Ltd must ensure that the supply of B5 does not negatively impact the operability of vehicle engines and complies with the overall objectives of reducing life-cycle greenhouse gas emissions and supporting the biodiesel industry (section 2). The notice further outlines that the decision to grant the approval was made after consulting with the Fuel Standards Consultative Committee as required by section 24A of the Act. The approval was granted considering factors such as environmental protection, occupational and public health and safety, consumer interests, and the impact on economic and regional development (section 2). The use of B5 is intended to provide a modest reduction in life-cycle greenhouse gas emissions, with negligible environmental impacts, and offer consumers an opportunity to purchase more sustainably produced fuels (section 2). In terms of penalties or consequences for breach, the Act does not explicitly state penalties for non-compliance with the specified parameters or obligations. However, any failure to comply with the approval conditions could potentially lead to enforcement actions by the Department of Climate Change, Energy, the Environment and Water. Such actions could include revocation of the approval, fines, or other regulatory measures to ensure compliance with the Act and its objectives. The exact penalties or consequences would depend on the specific breach and the regulatory framework in place at the time of enforcement.