COMMONWEALTH OF AUSTRALIA
Fuel Quality Standards Act 2000
Section 17D
VARIATION OF AN APPROVAL GRaNTED UNDER SECTION 13 OF THE
Fuel Quality Standards Act 2000
I, Lee Eeles, Acting Assistant Secretary, Environment Protection Branch, Department of Sustainability, Environment, Water, Population and Communities, delegate of the Minister, pursuant to subsection 17D(3) of the Fuel Quality Standards Act 2000 (the Act) and having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, hereby vary the approval granted under section 13 of the Act to The Shell Company of Australia Limited on
11 October 2011, to permit automotive diesel containing:
- up to five per cent biodiesel content (B5) having a minimum derived cetane number of 46 and a maximum density of 852 kg/m3; and
- more than five per cent but no greater than 20 per cent biodiesel content (B20) having a minimum derived cetane number of 46 and a maximum density of 858 kg/m3.
This variation extends the period of operation of the above approval until 30 June 2014 and amends the conditions of the approval to the conditions specified in Annexure 1 of this variation.
This variation comes into force on the date of signing.
Dated 21 September 2012
Lee Eeles...............................................
Acting Assistant Secretary, Department of Sustainability, Environment, Water, Population and Communities
Annexure 1
Conditions of approval
- The diesel and biodiesel used to create the blends covered by the approval must, before the two fuels are blended, comply with the applicable fuel standard ( i.e. the Fuel Standard (Automotive Diesel) Determination and the Fuel Standard (Biodiesel) Determination 2003);
2. B20 fuel subject to the approval must be supplied under contract only to commercial users and must not be available for supply through publicly accessible forecourts;
3. Users and downstream suppliers of B20 subject to the approval must be informed, in writing, that the fuel varies from the standard for automotive diesel and how it varies, prior to entering into contractual arrangements for supply of the fuel;
4. The approval holder must provide a list of regulated persons that specifies the full legal entity name, the Australian Business Number (ABN) or Australian Company Number (ACN) and contact details including a numbered street address, for each regulated person to the Department of Sustainability, Environment, Water, Population and Communities (the department) within 2 months from the date of the approval being signed;
5. The approval holder must provide quarterly reports to the department on the DCN and density readings of B5 and B20 biodiesel blend fuel samples taken at least on a monthly basis and the volume of supply under the approval for the reporting periods, 1 April to 30 June, 1 July to 30 September, 1 October to 31 December, and 1 January to 31 March. In its reports, the approval holder must include detailed information, where available, about the cetane values and density of the diesel and biodiesel fuels prior to blending and the cetane values and density of the blended product. These reports are due within one month of the end of the reporting period; and
6. The approval holder must provide a report to the department on its progress towards achieving compliance with the DCN and density parameters in the automotive diesel standard beyond the approval period, with the report being due one month after the end of the approval period. The report is to include the results of research and analysis of cetane and density in the approval holder’s blend stocks and blended product and information regarding the factors that influence the DCN of diesel produced at its refineries and terminals. The report must also include information as to whether DCN can be effectively controlled and the implications of running the refinery in such a way so as to consistently achieve minimum 51 DCN. This report should also include cost analysis of infrastructure (tankage) and distribution options to control DCN and density in diesel biodiesel blends.
Overview
The Fuel Quality Standards Act 2000, enacted by the Commonwealth Parliament, was introduced to ensure that fuel quality standards are upheld across Australia, addressing the need for consistent fuel quality to protect the environment and public health. This Act aims to regulate the quality of fuels and the blending of these fuels, ensuring they meet specified standards before being supplied to the public. The Act provides mechanisms for approving deviations from standard fuel quality parameters under specific conditions to encourage innovation and the use of alternative fuels while maintaining safety and quality. The policy objective is to balance environmental sustainability with economic and technological progress in the fuel industry.
Scope and Application
The Fuel Quality Standards Act 2000 applies to the quality and standards of fuels used in Australia, particularly focusing on automotive diesel. This legislation is of Commonwealth jurisdiction, meaning it extends across the entire nation. The Act applies to entities such as The Shell Company of Australia Limited, which are granted specific approvals for fuel blends, ensuring they comply with the standards set out in the Act and any variations thereof. In this instance, the Act provides a framework for approving the use of biodiesel blends in automotive diesel, up to specified limits, and imposes certain conditions to ensure compliance with fuel standards. The Act allows for variation of approvals granted under section 13, which was exercised in this case to permit certain biodiesel content in automotive diesel. The geographic reach of the Act is national, as it is a Commonwealth Act and applies across Australia. Exclusions or exemptions from the Act are not explicitly detailed in the text; however, the Act does provide for specific conditions and requirements for approved fuel blends, ensuring compliance with fuel quality standards. The Act may also be extended or restricted through subordinate instruments, which are not detailed in the provided text.
Key Provisions
The main sections of the Fuel Quality Standards Act 2000 that are relevant here are Section 13, which deals with the approval of automotive diesel blends, and Section 17D, which allows for the variation of such approvals. Section 17DV, in particular, provides the framework for the variation of an approval granted under Section 13. This section has been exercised to alter the biodiesel content permitted in automotive diesel, allowing blends of up to five per cent biodiesel content (B5) and more than five per cent but no greater than 20 per cent biodiesel content (B20). The variation, which came into force on the date of signing, extends the period of the approval until 30 June 2014 and modifies the conditions of the approval to those specified in Annexure 1.
Under the Act, The Shell Company of Australia Limited, as the approval holder, has specific obligations and requirements. These include ensuring that the diesel and biodiesel used to create the blends comply with the applicable fuel standards before blending, supplying B20 fuel only under contract to commercial users, informing users and downstream suppliers of the fuel’s deviation from standard automotive diesel, and providing detailed reports to the Department of Sustainability, Environment, Water, Population and Communities. The reports must detail the cetane values and density of the diesel and biodiesel fuels prior to blending, the cetane values and density of the blended product, and include a list of regulated persons with relevant details. The approval holder is also required to submit a final report detailing its progress towards achieving compliance with the diesel cetane number (DCN) and density parameters beyond the approval period, including a cost analysis of infrastructure and distribution options.
The Act imposes civil and criminal consequences for non-compliance with its provisions. While the specific penalties are not detailed in the excerpt, it is common for breaches of environmental and fuel quality legislation to attract significant fines and, in some cases, criminal charges. The penalties can vary depending on the severity and frequency of the breach, but they can include substantial fines for corporations and potential imprisonment for individuals. The Act’s provisions are designed to ensure that fuel quality standards are maintained to protect public health and the environment.