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

1.      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.