Notice under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Conventional Diesel) Determination 2025 – Viva Energy Australia Pty Ltd (Expiry 30 September 2026)

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to ensure that the quality of fuel sold in Australia meets certain standards, thereby protecting the environment, public health, safety, and consumer interests. This Act addresses the need for uniform fuel quality standards across the country, ensuring that fuels sold are safe, environmentally sound, and do not adversely affect public health and safety. The Act allows for the setting of fuel quality standards through determinations, which can be varied to respond to changing circumstances or new information. Under the authority of this Act, Cris Cano, as the delegate of the Minister for Climate Change and Energy, has granted an approval to Viva Energy Australia Pty Ltd, allowing them to supply diesel fuel with a minimum flash point of 60.5 °C, as opposed to the standard 61.5 °C. This decision was made after consulting with the Fuel Standards Consultative Committee and considering the potential impacts on the environment, occupational and public health and safety, consumer interests, and economic and regional development. The approval aims to provide flexibility in fuel standards to improve the cost competitiveness and operational efficiency of the refinery, while maintaining safety and environmental standards.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities and individuals involved in the production, supply, and distribution of fuel within Australia. This includes companies like Viva Energy Australia Pty Ltd, which are subject to the standards and approvals outlined by the Act. The Act's provisions govern the quality and safety parameters of fuel, including diesel, and mandate compliance with these standards to ensure environmental protection, occupational health and safety, consumer interests, and economic development. Geographically, the Act has a national reach across Australia, impacting all states and territories uniformly. The Act can extend its application through subordinate instruments such as determinations and approvals, as evidenced by the variation of the Conventional Diesel Standard for Viva Energy Australia. This particular approval allows Viva Energy Australia to supply diesel with a minimum flash point of 60.5°C, differing from the standard 61.5°C, until 30 September 2026. This decision considers the interests of environmental protection, occupational and public health, consumer interests, and economic development, without excluding or exempting any of these critical factors.

Key Provisions

The key provisions of the Notice involve the approval of a variation to the fuel standard for conventional diesel (section 13 of the Act), allowing Viva Energy Australia Pty Ltd to supply diesel with a minimum flash point of 60.5°C, which was previously set at 61.5°C (paragraph 13A(2)). This approval is valid until 30 September 2026. The approval holder, Viva Energy Australia Pty Ltd, must adhere to the conditions set forth in the Notice and ensure that the modified fuel standard is met for the duration of the approval. The obligations of Viva Energy Australia Pty Ltd include supplying diesel with the specified flash point and complying with all other relevant provisions of the Fuel Quality Standards Act 2000 and any associated regulations. This involves ensuring that the fuel supplied meets the safety and handling standards set forth in the Conventional Diesel Standard and that any changes to labelling requirements are adhered to, particularly in states or territories that mandate flash point identification on storage labels. Failure to comply with the conditions of the approval may result in enforcement actions under the Act. Potential consequences for non-compliance could include fines or other penalties as prescribed by the Act. While the Notice does not specify maximum penalties, the Act generally provides for significant fines for breaches related to fuel quality standards. In addition to financial penalties, there may be civil or criminal liabilities depending on the severity and intent behind the breach, potentially leading to court action and further sanctions.