Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Conventional Diesel) Determination 2025 – SMRM Holdings Pty Ltd (Expiry 30 June 2027)

Overview

The Fuel Quality Standards Act 2000, enacted by the Commonwealth Parliament, was introduced to ensure the quality of liquid fuels supplied in Australia, with the aim of protecting the environment and the health and safety of the public. Under this Act, the Minister for Climate Change and Energy has the authority to establish fuel quality standards, including setting specifications for conventional diesel. Recently, Cris Cano, Branch Head of Liquid Fuels Operations and Analysis Branch and a delegate of the Minister, granted an approval to SMRM Holdings Pty Ltd for a variation of the fuel standard for conventional diesel. This approval allows the supply of blended diesel-biodiesel fuel (B20), which contains up to 20% biodiesel, to comply with the parameters of the Conventional Diesel Standard until 30 June 2027. This decision was made considering environmental benefits such as reduced greenhouse gas emissions and improved air quality, while also taking into account the protection of occupational and public health and safety, consumer interests, and the potential for economic and regional development.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality of fuel supplied in Australia, with specific standards set for various fuel types, including conventional diesel. The Act applies to entities involved in the production, importation, and supply of fuel within Australia, ensuring compliance with specified fuel quality standards. This legislation operates at a Commonwealth level, applying across all states and territories. However, the Act allows for variation in fuel quality standards through subordinate instruments, as evidenced by the notice under section 17A concerning the variation of the Fuel Quality Standards (Conventional Diesel) Determination 2025. This particular notice, issued by the Branch Head, Liquid Fuels Operations and Analysis Branch of the Department of Climate Change, Energy, the Environment and Water, grants an approval to SMRM Holdings Pty Ltd to supply blended diesel-biodiesel fuel (B20). The approval specifies a maximum biodiesel content of 20% and a maximum density of 860 kg/m3, aligning with the environmental and safety considerations outlined in the Act. The approval is effective from the date of issuance and will remain in force until 30 June 2027. This legislative action aims to promote environmental sustainability, public health, and economic development by facilitating the use of a lower-carbon fuel option that aligns with national greenhouse gas emissions targets.

Key Provisions

The primary operative sections of the notice provided under section 17A of the Fuel Quality Standards Act 2000 (the Act) include sections 13 and 13A. Section 13 allows for the approval of variations to fuel quality standards, and section 13A details how such approvals come into force and their duration. This particular approval (paragraphs 13A(1) and (2)) was granted to SMRM Holdings Pty Ltd and it varies the fuel standard for conventional diesel, allowing for the supply of blended diesel-biodiesel fuel (B20) with a maximum biodiesel content of 20% and a maximum density of 860 kg/m3, effective until 30 June 2027. The obligations and requirements imposed by this Act on the parties it governs primarily focus on ensuring the safety, environmental, and economic benefits of the varied fuel standards. SMRM Holdings Pty Ltd, as the approval holder, must ensure that the supplied B20 fuel adheres to the specified parameters and meets the standards set out in the Fuel Quality Standards (Conventional Diesel) Determination 2025. This includes compliance with the maximum biodiesel content and density limits, and ensuring that the fuel provides the anticipated environmental and health benefits as outlined in the approval. The department also has a responsibility to monitor and enforce compliance with these standards to protect the environment and public health. Failure to comply with the terms and conditions of the approval may result in various consequences as stipulated by the Act. The Act provides for both civil and criminal penalties for non-compliance. For instance, under section 18, a person who contravenes a provision of the Act may be liable to a penalty of up to $11,100 for a corporation and up to $2,220 for an individual, as prescribed by the Criminal Code Act 1995. Additionally, under section 20, the court may order the confiscation of any fuel that does not comply with the standards, and further orders may be made to rectify any non-compliance. These penalties underscore the importance of adhering to the stipulated fuel quality standards and the potential repercussions for any breaches.