A/G 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, Rick Miles, A/g 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

• The National Biofuels Group Pty Ltd
• Biodiesel Producers Ltd
• Neumann Petroleum Pty Ltd
• The Trustee for Rojok Unit Trust, trading as Macquarie Oil Company
• Freedom Fuels Terminalling Pty Ltd
• The Biodiesel Station Pty Ltd
• Hahn Group Pty Ltd, trading as Hahn Fuels (formerly Future Fuels Australia Pty Ltd)
• Australian Renewable Fuels Adelaide Pty Ltd
• Australian Renewable Fuels Picton Pty Ltd
• Eagle Fuels Pty Ltd
• Mogas Regional Pty Ltd
• Logicoil Pty Ltd (formerly Pre-Logic Pty Ltd)
•  ProGreen Biofuels Pty Ltd
• The Trustee for A G & P F McWhirter Family Trust, trading as Great Southern Fuel Supplies (formerly Eastern Great Southern Petroleum)
• Central State Fuels Pty Ltd
• Kifuel Pty Ltd
• The Trustee for Eco Tech Biodiesel Unit Trust, trading as Consolidated Biodiesel Pty Ltd
• Bioworks Australia Pty Ltd
• Glencore Singapore Pte Ltd (now operating under Glencore Australia Oil Pty Limited)
• Ashoil Pty Ltd
• Petro National Pty Ltd

Details of the variation

The listed approvals vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 to permit the supply of diesel containing more than five per cent and up to 20 per cent biodiesel.

Pursuant to section 17D of the Act, the period of operation of each approval listed has been extended until 31 December 2020, or until a B20 diesel-biodiesel standard has 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 31 December 2020, or until a B20 diesel-biodiesel standard has been put in place, whichever occurs first.

Summary of reasons for the variation

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the variation to each listed approval for the following reasons as provided for in section 15(1) of the Act:

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, fuel dispensers will be clearly labelled to advise consumers that the diesel contains biodiesel. Any potential warranty issues for vehicles will, therefore, be addressed.

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.
 

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

Rick Miles
A/g Assistant Secretary, Energy Security Branch,
Department of the Environment and Energy
18 December 2019