Notice under section 17E(3) of the Fuel Quality Standards Act 2000 for Variation to an Existing Section 13 Approval (C2023G00978) to Add Regulated Persons – Viva Energy Australia Pty Ltd (Expiry 31 August 2025)

Overview

The Fuel Quality Standards Act 2000 was enacted to establish and regulate fuel quality standards in Australia, ensuring that fuels available on the market do not adversely affect the environment or human health. This Act was introduced to address the need for a consistent framework governing fuel quality, thereby preventing the sale of substandard fuels that could harm public health and the environment. The Australian Parliament enacted this legislation to provide a regulatory structure that would support the introduction and use of cleaner and more efficient fuels in the nation. The policy objective of the Act is to protect public health and the environment by setting and enforcing quality standards for fuels, and to support the transition towards more sustainable fuel options. The Department of Climate Change, Energy, the Environment and Water has the authority to vary existing approvals under section 13 of the Act to adapt to changing circumstances or new information. In this specific instance, the Branch Head, Liquid Fuels Operations and Analysis Branch, has exercised this power to add a regulated person to an existing approval held by Viva Energy Australia Pty Ltd, which was initially granted to allow the supply of renewable diesel with certain specifications. The variation aims to facilitate the growth of renewable diesel supply chains in Australia, supporting the national goal of reducing carbon emissions through the use of lower-carbon liquid fuels.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of fuel in Australia, with a particular focus on those entities that may seek to vary the fuel standards set out in the Act. In this case, the Act applies to Viva Energy Australia Pty Ltd, a company that was granted an approval to vary the fuel standard for the supply of renewable diesel. The Act operates on a Commonwealth level, with the Minister for Climate Change and Energy having the authority to delegate decisions regarding approvals and variations. The addition of WEBUILD S.P.A. to the existing approval under section 13 of the Act demonstrates the flexibility of the Act in accommodating changes to the entities involved in fuel supply while ensuring compliance with conditions designed to protect the environment and public health. The Act does not specify any exclusions or exemptions, and its application can be extended or restricted through subordinate instruments, such as the approval and variation notices issued by the Branch Head of the Liquid Fuels Operations and Analysis Branch.

Key Provisions

The main operative sections in the notice provided under section 17E(3) of the Fuel Quality Standards Act 2000 (the Act) relate to the variation of an existing section 13 approval. The existing approval (Gazette C2023G01200) permits Viva Energy Australia Pty Ltd to vary the fuel standard set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019. Specifically, this approval allows the supply of renewable diesel containing a minimum density value of 780 kg/m3. The notice adds another regulated person, WEBUILD S.P.A., to this approval, expanding the scope of the original permit (section 17E(3)). This variation is effective from the date of the notice until the expiration of the existing approval, which is 31 August 2025. The obligations and requirements imposed by this Act on the parties involved are primarily about compliance with the conditions set by the approval. Viva Energy Australia Pty Ltd and the newly added regulated person, WEBUILD S.P.A., must ensure that their operations adhere to the specified fuel standards and conditions. These include the supply of renewable diesel with a minimum density value of 780 kg/m3 and any other conditions stipulated in the original approval. Both entities are expected to maintain records and documentation proving compliance with these standards and to report any changes or breaches to the relevant authorities. The Act stipulates various consequences for non-compliance with the provisions of the approval. Offences under the Act may include supplying fuel that does not meet the approved standards, failing to report changes, or not adhering to the conditions set by the approval. The penalties for such breaches can be severe, with potential fines and other sanctions. While the exact penalties are not detailed in the notice, they are typically substantial to ensure compliance and the protection of public and environmental health. The penalties could range from financial fines to more severe legal actions, depending on the nature and severity of the breach.