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

Overview

The Fuel Quality Standards Act 2000 was enacted to establish and enforce standards for fuel quality in Australia, aiming to protect the environment, public health, and consumer interests. The Act provides a regulatory framework that ensures fuel sold in Australia meets certain quality standards, thereby minimising the environmental impact and health risks associated with fuel combustion. This legislation was introduced by the Australian Parliament to address the need for a consistent and enforceable quality standard for fuels, particularly in light of growing environmental concerns and the need to regulate the impact of fuel on air quality and greenhouse gas emissions. The policy objective of the Act is to safeguard the environment and public health by setting and enforcing fuel quality standards that reduce the harmful effects of fuel use. The Act empowers the relevant authorities to approve variations in fuel quality standards under specific conditions, as evidenced by the recent approval granted to Mobil Oil Australia Pty Ltd to supply diesel-biodiesel blends containing up to 5% biodiesel. This approval, which is in line with the Act's objective to reduce life-cycle greenhouse gas emissions and support sustainable practices, was made following consultation with relevant stakeholders and an assessment of the environmental, health, and economic impacts of the proposed variation.

Scope and Application

The Fuel Quality Standards Act 2000, as amended by this Notice, pertains specifically to Mobil Oil Australia Pty Ltd, authorising the company to supply diesel-biodiesel blends containing up to 5% biodiesel (B5) until 31 December 2028. This Act applies to entities involved in the supply of diesel, specifically granting Mobil Oil Australia Pty Ltd an exemption from the strict parameters of the Fuel Quality Standards (Conventional Diesel) Determination 2025. The approval ensures that diesel containing up to 5% biodiesel meets certain criteria, including a maximum biodiesel content of 5% by volume, a maximum density of 852 kg/m3, and a minimum derived cetane number of 46, thereby complying with the relevant standards. The legislation operates within the Commonwealth jurisdiction, ensuring uniform standards across Australia. No exclusions or exemptions are explicitly stated in the Notice, but the approval is contingent on compliance with the specified conditions. The scope of the Act can be further extended or modified through subordinate instruments, as necessary.

Key Provisions

The notice under Section 17A of the Fuel Quality Standards Act 2000 (the Act) issued by Paula Svarcas, Head of the Gas and Liquid Fuels Division, provides a variation of the existing approval granted to Mobil Oil Australia Pty Ltd (ABN 88 004 052 984). This variation pertains to the Fuel Quality Standards (Conventional Diesel) Determination 2025, allowing for the supply of diesel-biodiesel blends containing up to 5% biodiesel (B5). The approval permits a maximum biodiesel content of 5%, a maximum density of 852 kg/m3, and a minimum derived cetane number of 46, in line with the relevant parameters specified in the Conventional Diesel Standard (section 13). The variation is effective from the date of approval and will remain in force until 31 December 2028 (section 13A(1) and (2)). Mobil Oil Australia Pty Ltd, as the approval holder, is required to comply with the conditions outlined in the notice. This includes ensuring that any diesel-biodiesel blends supplied under the approval adhere to the specified parameters of up to 5% biodiesel content, a maximum density of 852 kg/m3, and a minimum derived cetane number of 46. The company must also ensure that the blends do not adversely affect the environment, occupational and public health and safety, and consumer interests. The approval allows for the supply of B5 under the Conventional Diesel Standard, which already accommodates such blends, ensuring no operability issues for vehicle engines. The Act imposes several obligations and requirements on Mobil Oil Australia Pty Ltd. Firstly, the company must consult with the Fuel Standards Consultative Committee as required by Section 24A of the Act. Additionally, Mobil Oil Australia Pty Ltd must ensure that its operations align with the protection of the environment, occupational and public health and safety, consumer interests, and economic and regional development, as specified under Section 15 of the Act. Mobil Oil Australia Pty Ltd must also ensure that its supply of B5 blends meets the set parameters to maintain compliance with the Conventional Diesel Standard. Failure to comply with the conditions of the approval may result in legal consequences. Although the specific offences and penalties are not detailed in the notice, breaches of the Act can lead to civil or criminal penalties, including fines and imprisonment. The maximum penalties for breaches of the Fuel Quality Standards Act 2000 can vary depending on the nature and severity of the offence. For instance, contravening the Act may result in fines of up to $22,200 for individuals and $111,000 for corporations, along with potential imprisonment terms. These penalties serve as a deterrent against non-compliance and ensure adherence to the regulatory standards set by the Act.