ACTING ASSISTANT SECRETARY, ENERGY SECURITY BRANCH

DEPARTMENT OF THE ENVIRONMENT AND ENERGY

NOTICE UNDER SECTION 17D OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION TO VARY APPROVALS GRANTED UNDER SECTION 13
OF THAT ACT

I, Dwayne Purdy, Acting Assistant Secretary, Energy Security Branch, delegate of the Minister for Energy and Emissions Reduction, provide the following information concerning my decision to vary a set of approvals granted under section 13 of the Fuel Quality Standards Act 2000.

Name of approval holders

• Viva Energy Australia Pty Ltd (formerly The Shell Company of Australia Limited),
  granted on 11 October 2011
• Mobil Oil Australia Pty Ltd, granted on 24 May 2012
• Caltex Australia Petroleum Pty Ltd, granted on 24 May 2012
• BP Australia Pty Ltd, granted on 9 September 2014

Details of the variation

The listed approvals were granted to vary the Fuel Standard (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 30 June 2020, or until both a revised diesel standard and a B20 diesel biodiesel standard have been put in place, 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 30 June 2020.

Summary of reasons for the variation

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 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 nitrogen oxides 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 diesel. Its impact on occupational and public 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 legally supply blends containing higher than five per cent biodiesel. This results in a barrier to the development of an Australian alternative fuels market. If the extensions to the approvals are not granted, the restriction of blend levels could have a negative effect on the development of the Australian biodiesel industry.

The variation is granted subject to the conditions specified in section 17 of the Act.

Dwayne Purdy

Acting Assistant Secretary, Energy Security Branch  

16 September 2019