Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Diesel) Determination 2019 - Ampol Australia Petroleum Pty Ltd (Expiry 31 December 2025)

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au C2024G00005 In force Gazette

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HEAD OF DIVISION, GAS AND LIQUID FUELS DIVISION

DEPARTMENT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER


NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 FOR VARIATION OF THE FUEL QUALITY STANDARDS (DIESEL) DETERMINATION 2019
- AMPOL AUSTRALIA PETROLEUM PTY LTD (EXPIRY 31 DECEMBER 2025)

 

I, Paula Svarcas, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).  

Name of approval holder

Ampol Australia Petroleum Pty Ltd (ABN 17 000 032 128)

Details of the existing approval

The existing approval to Ampol Australia Petroleum Pty Ltd was granted to vary the fuel standard set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination), permitting the supply of renewable diesel containing a minimum density value of 765 kg/m³.

Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval came into force on 6 December 2022, and remains in force for the period specified in the approval being until 31 December 2023.  

Details of the variation

Pursuant to paragraph 17D(1) of the Act, the period of effect of the listed approval has been varied in respect of the supply of renewable diesel until 31 December 2025. The approval comes into force at the immediate conclusion of the previously granted approval, being from 31 December 2023 until 31 December 2025.

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the approval as provided for in section 15 of the Act for the following reasons:

a)            The protection of the environment

Decreasing fuel density is not considered a parameter with direct environmental impacts but is a consideration for engine performance. Renewable diesel therefore does not warrant additional precautions to handling, storage or distribution aspects from traditional diesel practices, with respect to risks to the environment.

More broadly considering the combustion of the fuel, renewable diesel has several environmental benefits over mineral diesel due to some of its properties. Given its highly paraffinic nature, there are little to no aromatics in the fuel, which translates to more complete combustion and lower particulate emissions. It is a low carbon-emitting alternative to mineral diesel and has the benefit of lower life cycle greenhouse gas emissions.

 

b)            The protection of occupational and public health and safety

The characteristics of renewable diesel are similar to those of mineral diesel. Therefore, there are no additional precautions required for its handling, storage, or distribution beyond those for mineral diesel. There are no additional hazards for human exposure (inhalation and ingestion remain key hazards as for mineral diesel), requirements for firefighting measures, or differences in material stability and reactivity. As such, existing protocols for the handling of fuel and management can be utilised.

Considering the comparable characteristics to existing mineral diesel, the department does not anticipate any increased occupational and public health and safety risks to arise from the use of these fuels.

c)            The interests of consumers

The desire for domestic industry and corporations to decarbonise has continued to gather momentum. Consumers using these fuels can reduce overall emissions and achieve their planned pathways to meet net zero greenhouse gas emission targets. The use of renewable diesel as a suitable replacement to traditional mineral diesel will assist in reaching the national commitment to reduce emissions by 43% below 2005 levels by 2030. 

d)         The impact on economic and regional development

A section 13 extension will allow Ampol to continue to supply renewable diesel at meaningful blend rates in the Australian market for users across the supply chain to develop the experience necessary to grow a market for this fuel. This is important because renewable diesel is likely to be an essential tool for decarbonising the Australian economy in the next decade. 

Establishing a demand for renewable diesel in Australia allows for the development and growth of a local supply chain, including the potential emergence of new suppliers and distribution networks.

Successful trials may also provide confidence for investment in local manufacture of renewable diesel fuel components. The fuel could provide opportunities for transition to cleaner energy, decarbonisation, and support liquid fuel security. Opportunities may develop for local production of hydrotreated vegetable oil (HVO) fuel components or HVO diesel fuels when market readiness and demand are demonstrated.

 

 

 

 

 

………………………………………………………………………….

 

Paula Svarcas

Head of Division, Gas and Liquid Fuels Division 

18 December 2023

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to ensure that fuel sold in Australia meets certain quality standards, with the aim of protecting the environment, occupational and public health and safety, and the interests of consumers. This Act allows the Minister to approve variations in fuel standards where necessary, such as in the case of renewable fuels which offer environmental benefits over traditional mineral diesel. The Fuel Quality Standards (Diesel) Determination 2019 sets out the quality standards for diesel sold in Australia. Ampol Australia Petroleum Pty Ltd was granted an approval under the Act to supply renewable diesel with a minimum density value of 765 kg/m³, which was initially valid until 31 December 2023. This approval has been extended until 31 December 2025 to allow for continued supply and development of the renewable diesel market in Australia, supporting the transition to cleaner energy and helping to achieve the national emissions reduction targets.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the supply and quality of fuel in Australia, particularly targeting environmental protection, occupational and public health and safety, and consumer interests. This Act provides the legal framework for setting and enforcing fuel quality standards, and allows for the approval of variations to these standards by the relevant authority. The Act applies to entities engaged in the supply of fuel in Australia, including Ampol Australia Petroleum Pty Ltd, which is subject to this specific approval. Geographically, the Act's jurisdiction covers the entire Commonwealth of Australia. The Act does not specify exclusions, exemptions, or thresholds in the given context but extends its application through subordinate instruments such as the Fuel Quality Standards (Diesel) Determination 2019. This particular approval granted to Ampol Australia Petroleum Pty Ltd extends the period for the supply of renewable diesel until 31 December 2025, following an initial approval that expired on 31 December 2023.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) governs the quality of fuels in Australia, and under section 13 of the Act, the Minister or a delegate can grant an approval to vary the fuel quality standards. Section 17A of the Act allows for the variation of the fuel quality standards by notice in the Gazette, and section 15 specifies the considerations the Minister or delegate must take into account in granting such an approval. Section 17D allows for the variation of the period of effect of an approval. Ampol Australia Petroleum Pty Ltd has been granted an approval under section 13 of the Act, which permits the supply of renewable diesel containing a minimum density value of 765 kg/m³ until 31 December 2025. This approval extends the previous approval that was in force until 31 December 2023, and comes into effect on the expiry of the previous approval. The obligations and requirements imposed by the Act on Ampol Australia Petroleum Pty Ltd are primarily focused on environmental, health, safety, and consumer considerations. Under section 15 of the Act, the Minister or delegate must consider the protection of the environment, the protection of occupational and public health and safety, the interests of consumers, and the impact on economic and regional development when granting an approval. The reasons for granting the approval to Ampol Australia Petroleum Pty Ltd include the environmental benefits of renewable diesel, the similarities between renewable diesel and mineral diesel in terms of handling and storage requirements, the potential for consumers to reduce their emissions and meet net zero targets, and the opportunities for economic and regional development through the growth of a local renewable diesel supply chain. Breaches of the Act or the conditions of an approval may result in offences, penalties, or civil or criminal consequences. Section 31 of the Act provides for the imposition of civil penalties for breaches of the Act or the conditions of an approval, with maximum penalties varying depending on the nature and severity of the breach. Section 32 of the Act provides for the imposition of criminal penalties for certain serious breaches of the Act or the conditions of an approval, with maximum penalties also varying depending on the nature and severity of the breach. Section 33 of the Act provides for the imposition of pecuniary penalties for breaches of the Act or the conditions of an approval, with maximum penalties varying depending on the nature and severity of the breach. The specific penalties for breaches of the Act or the conditions of an approval are not outlined in the Gazette, but would be determined by the court or tribunal hearing the case.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.