Notice Under Section 17D of the Fuel Quality Standards Act 2000 Concerning a Decision Under Section 13 of that Act for an Approval for a Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019

Administered by Department of Industry, Science and Resources

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GENERAL MANAGER, LIQUID FUELS TASKFORCE

DEPARTMENT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

NOTICE UNDER SECTION 17D OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION UNDER SECTION 13 OF THAT ACT FOR AN APPROVAL FOR A VARIATION OF THE FUEL QUALITY STANDARDS (AUTOMOTIVE DIESEL) DETERMINATION 2019

I, Dione Scheltus, Acting General Manager, Liquid Fuels Taskforce, Department of Industry, Science, Energy and Resources, delegate of the Minister for Energy and Emissions Reduction, 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

The Biodiesel Station Pty Ltd, granted on 26 February 2009

Mogas Regional Pty Ltd, granted on 21 August 2009

Green Power Pty Ltd (formerly Pro Green Biofuels Pty Ltd), granted on 20 April 2010

Viva Energy Australia Pty Ltd (formerly The Shell Company of Australia Limited), granted on 11 October 2011

Ampol Australia Petroleum Pty Ltd (formerly Caltex Australia Petroleum Pty Ltd), granted on 24 May 2012

Consolidated Biodiesel Pty Ltd acting as trustee for Eco Tech Biodiesel Unit Trust, granted on 27 June 2012

Bioworks Australia Pty Ltd, granted on 19 December 2012

Ashoil Pty Ltd, granted on 26 November 2013

BP Australia Pty Ltd, granted on 9 September 2014

Details of the variation

The listed approvals were granted to vary the Fuel Standards (Automotive Diesel) Determination 2001 to permit the supply of diesel biodiesel blends as specified in the original grants of approval or subsequent variations.

Pursuant to section 17D of the Act, the period of operation of each approval listed has been extended until 31 December 2021, or until a B20 diesel biodiesel standard has been made, whichever occurs first.

Period of operation

This variation comes into force on the date of signing and remains in force for each approval listed until 31 December 2021, or until a B20 diesel biodiesel standard has been made, whichever occurs first.

 

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 17D(3) of the Act, I grant the variation to each listed approval holder as provided for in section 15 of the Act for the following reasons:

(a)                The protection of the environment

Tailpipe emissions from diesel-biodiesel blend use, compared to diesel, will have both positive and negative impacts on air quality as the level of biodiesel in the blend increases. In general, emissions of oxides of nitrogen increase, but particulate matter, hydrocarbons and carbon monoxide emissions all decrease.

(b) The protection of occupational and public health and safety

In terms of safety data, diesel with up to 20 per cent biodiesel has been shown to be similar to mineral diesel. Its impact on occupational health and safety should be no greater than diesel already supplied to the market.

(c) The interests of consumers

As required under the original conditions of approval, the diesel-biodiesel blends may only be supplied under contract to commercial users and not at forecourts. Fuel dispensers must also be clearly labelled to advise consumers that the diesel contains biodiesel to address any potential warranty issues.

(d) The impact on economic and regional development

As the level of biodiesel has been capped at five per cent in the diesel standard, and in the absence of a B20 diesel-biodiesel standard, industry cannot lawfully supply blends containing greater than five per cent biodiesel. This results in a barrier to the development of an Australian alternative fuels market. If the extensions are not granted, the restriction of blend levels could have a negative effect on the development of the Australian biodiesel industry. 

 

 

 

………………………………………………………………………….

Dione Scheltus

Acting General Manager

Liquid Fuels Taskforce

Department of Industry, Science, Energy and Resources

21 December 2020

 

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel sold in Australia, aiming to protect the environment and public health while facilitating economic and regional development. This Act provides a framework for establishing and enforcing fuel quality standards, and it allows for the approval of variations to these standards under certain conditions. The problem or gap that the Act was introduced to address was the need for a comprehensive legislative approach to ensure that fuel sold in Australia meets specific quality standards that balance environmental protection, public health, and economic interests. The Act was passed by the Australian Parliament and includes a policy objective to ensure that the quality of fuel supplied in Australia supports the protection of the environment and public health, as well as the interests of consumers and the development of regional and economic interests.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities that supply liquid fuels in Australia, including diesel and biodiesel blends. Specifically, the Act grants approvals to certain companies to vary the standards for automotive diesel, allowing for the supply of diesel-biodiesel blends under certain conditions. The Act applies on a national level, across all states and territories of Australia. The listed approvals granted under the Act apply to Biodiesel Station Pty Ltd, Mogas Regional Pty Ltd, Green Power Pty Ltd, Viva Energy Australia Pty Ltd, Ampol Australia Petroleum Pty Ltd, Consolidated Biodiesel Pty Ltd, Bioworks Australia Pty Ltd, Ashoil Pty Ltd, and BP Australia Pty Ltd. The Act does not provide specific exclusions or exemptions but outlines conditions under which the fuel can be supplied. The approval period for each entity has been extended until 31 December 2021 or until a B20 diesel biodiesel standard has been made, whichever occurs first. The Act may be further defined or extended through subordinate instruments as necessary.

Key Provisions

The main operative sections of the Fuel Quality Standards Act 2000 that are relevant to this legislation include sections 13, 15, and 17D. Section 13 allows for the granting of an approval for a variation of the fuel quality standards, section 15 sets out the considerations that must be taken into account when making such a decision, and section 17D provides for the extension of the period of operation of such approvals. Pursuant to these sections, the Acting General Manager, Liquid Fuels Taskforce, has granted an approval for a variation of the Fuel Standards (Automotive Diesel) Determination 2001 to permit the supply of diesel biodiesel blends as specified in the original grants of approval or subsequent variations. This variation comes into force on the date of signing and remains in force for each approval listed until 31 December 2021, or until a B20 diesel biodiesel standard has been made, whichever occurs first. The obligations and requirements imposed by this legislation on the parties or entities it governs include the need to consult with the Fuel Standards Consultative Committee as required by section 17D(3) of the Act, to 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 making a decision to grant an approval for a variation of the fuel quality standards, and to ensure that fuel dispensers are clearly labelled to advise consumers that the diesel contains biodiesel to address any potential warranty issues. The listed approvals were granted to vary the Fuel Standards (Automotive Diesel) Determination 2001 to permit the supply of diesel biodiesel blends as specified in the original grants of approval or subsequent variations. Any offences, penalties, or civil/criminal consequences for breach of this legislation are not specified in the text. However, the legislation does provide for the extension of the period of operation of each approval listed until 31 December 2021, or until a B20 diesel biodiesel standard has been made, whichever occurs first. This extension is granted pursuant to section 17D of the Act, which provides for the extension of the period of operation of such approvals in certain circumstances. The maximum penalties for breach of this legislation are not specified in the text.

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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.