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

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure the quality of fuel supplied to consumers in Australia, safeguarding the environment, public health and safety, and supporting economic and regional development. The Act provides the framework for setting and enforcing fuel quality standards and includes mechanisms for approving variations to these standards under specific conditions. The Fuel Quality Standards (Diesel) Determination 2019 sets out the quality requirements for diesel, including parameters such as minimum density. The policy objective of this Act is to allow the Department of Climate Change, Energy, the Environment and Water to approve variations to fuel quality standards, such as lowering the minimum density of diesel, where it is deemed safe and beneficial for the environment and public health. The approval of Viva Energy Australia Pty Ltd to supply renewable diesel with a reduced minimum density of 765 kg/m³, which aligns with international standards and supports the transition to lower emission fuels, reflects this policy objective.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities and individuals engaged in the production, import, supply, and use of fuel in Australia. This legislation mandates the quality standards for liquid fuels to ensure environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. Specifically, the Act applies to Viva Energy Australia Pty Ltd, which has been granted an approval to supply renewable diesel with a specific minimum density value. This Act's reach is national, as it governs fuel quality standards across Australia, including both Commonwealth and state jurisdictions. The Act allows for variations in fuel quality standards through subordinate instruments, such as the Fuel Quality Standards (Diesel) Determination 2019, which has been amended in this case to adjust the minimum density parameter for renewable diesel. The variation made to Viva Energy Australia Pty Ltd’s approval is limited to the supply of renewable diesel with a minimum density of 765 kg/m³, effective until 31 August 2025. This amendment maintains the environmental protections, safety measures, and consumer benefits outlined in the original approval while allowing for the necessary adjustments to facilitate the trial and potential wider adoption of renewable diesel.

Key Provisions

The primary operative sections of this notice (C2023G01200) pertain to the variation of an approval granted under the Fuel Quality Standards Act 2000 (section 17A). Specifically, the notice addresses the modification of the Fuel Quality Standards (Diesel) Determination 2019 (Diesel Determination) concerning Viva Energy Australia Pty Ltd, which holds approval number 46 004 610 549. The approval, originally permitting the supply of renewable diesel with a minimum density of 780 kg/m3, has been altered to allow for a minimum density of 765 kg/m3. This variation remains in effect until 31 August 2025, as per the original approval terms. The Act imposes several obligations and requirements on Viva Energy Australia Pty Ltd. Firstly, the company must adhere to the modified parameters set out in the Diesel Determination, ensuring that the renewable diesel supplied meets the specified minimum density of 765 kg/m3. Additionally, Viva Energy Australia Pty Ltd is required to conduct these supply activities under contract for trial purposes only, limiting the distribution to commercial users and avoiding any contact with the general public. The company must also implement appropriate protocols for the handling of the fuel and management of potential spills, ensuring that these processes align with existing practices for conventional diesel. Failure to comply with the provisions outlined in the Act could result in legal consequences. The Act does not explicitly state specific offences or penalties in the notice provided; however, breaches of the conditions set forth in the approval or the Act generally may attract civil or criminal penalties. The severity of these penalties could vary depending on the nature and extent of the breach, with potential ramifications including fines, imprisonment, or both. The precise penalties would be determined in accordance with the relevant sections of the Fuel Quality Standards Act 2000 or other applicable legislation.