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

Overview

The Fuel Quality Standards Act 2000, enacted by the Australian Parliament, was introduced to establish and enforce quality standards for fuels sold within Australia, ensuring they meet specific environmental and health criteria. The Act aims to regulate fuel quality to protect public health and the environment while also facilitating the growth of a sustainable fuel supply chain. This legislation empowers the relevant authorities to approve entities that meet these stringent standards, enabling them to supply fuels that align with the established benchmarks. The policy objective behind the Act is to promote cleaner and safer fuel options while supporting the transition to a low-carbon economy. In this context, the Act plays a crucial role in balancing environmental protection with the need for reliable and sustainable fuel sources in Australia.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities and individuals involved in the supply of liquid fuel within Australia, specifically targeting the quality standards of such fuels. Under the Act, approvals can be granted to entities for variations in fuel standards, ensuring that these variations do not pose undue risks to the environment or human health. The Act applies to the whole of Australia, thereby having a national reach. In this instance, the approval granted under section 13 of the Act pertains to Viva Energy Australia Pty Ltd, which has been authorised to supply renewable diesel with specific density requirements. The Act also extends its application through subordinate instruments, allowing for variations and additions to existing approvals, as evidenced by the addition of Pilbara Iron Company (Services) Pty Ltd and Pilbara Iron Pty Ltd to the original approval held by Viva Energy Australia Pty Ltd. This variation is subject to the same conditions as the original approval and is in force until 31 August 2025, aligning with the expiry date of the initial approval.

Key Provisions

Under the Fuel Quality Standards Act 2000, section 13 approval allows entities to vary certain fuel standards. In this case, Viva Energy Australia Pty Ltd has been granted an approval to vary the fuel standard for renewable diesel as per the Fuel Quality Standards (Automotive Diesel) Determination 2019 (section 13(1)). This approval permits the supply of renewable diesel with a minimum density value of 780 kg/m3, which was initially valid from 31 October 2023 to 31 August 2025. The variation, under section 17E(3), extends the existing approval to include two additional regulated persons: Pilbara Iron Company (Services) Pty Ltd and Pilbara Iron Pty Ltd, effective from the date of signature until the approval expires on 31 August 2025. The Act imposes specific obligations on the parties involved. Viva Energy Australia Pty Ltd and the two additional regulated persons must adhere to the conditions stipulated in the original section 13 approval. This includes ensuring that the supply of renewable diesel meets the specified density requirements and does not pose any additional risks to the environment or human health. The entities must also ensure that their operations comply with all relevant conditions and standards set forth by the Department of Climate Change, Energy, the Environment and Water. Furthermore, these entities are required to report any changes in their operations or supply chains that may affect compliance with the approval. Failure to comply with the conditions of the section 13 approval may result in enforcement actions. Under the Fuel Quality Standards Act 2000, breaches of the Act or the conditions of an approval may lead to civil or criminal penalties. For instance, an entity found to be in breach of the approval conditions could face fines and sanctions, as outlined in the relevant sections of the Act. The maximum penalties for contravening the Act can be significant, with both corporate and individual officers potentially facing fines and imprisonment. The specific penalties depend on the nature and severity of the breach, and they are designed to ensure compliance and maintain the integrity of the fuel quality standards in Australia.