COMMONWEALTH OF AUSTRALIA
Fuel Quality Standards Act 2000
Subsection 17D(3)
NOTICE UNDER SECTION 17D OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION TO VARY 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, provide the following information concerning my decision made pursuant to subsection 17D(3) of the Fuel Quality Standards Act 2000 (the Act) to vary an approval granted under section 13 of the Act.
Name of approval holder
The Shell Company of Australia Limited (Shell)
Period of operation
The period of operation for this approval is from 11 October 2011 until 30 June 2014.
Details of the approval
This variation extends the period of operation of the approval until 30 June 2014 and amends the conditions of the approval to those set out in Annexure 1 of the variation instrument.
The amendments to the conditions of approval relate to:
1. Clarification of the requirement that users and downstream suppliers of fuel subject to the approval must be informed that the fuel varies from the standard prior to entering into a contractual relationship;
2. Addition of a requirement that the approval holder must provide the department with a list of regulated persons;
3. Amendments to approval holder reporting requirements.
4. Removal of Condition 5, that required the approval holder to provide a report to the department on compliance options considered within three months of the approval being granted.
Background
I must have regard to the following matters set out in subsection 15(1) of the Act before deciding whether or not to vary the approval:
(a) the protection of the environment;
(b) the protection of occupational and public health and safety;
(c) the interests of consumers; and
(d) the impact on economic and regional development.
I may also have regard to any other matters I consider relevant.
I must also consult with the Fuel Standards Consultative Committee and have regard to any recommendations of the Committee arising out of the consultation.
Findings on material questions of fact
(a) The protection of the environment
Most diesel supplies in Australia are capable of producing blended product that meets the minimum 51 derived cetane number. Shell’s data also suggests that a significant proportion of its supply will meet the maximum density in the diesel standard of 850 kg/m3. Therefore the variation in cetane and density of the fuel subject to the extension of the approval is not expected to cause significant environmental impacts.
(b) The protection of occupational and public health and safety
It is unlikely that occupational and public health and safety will be significantly affected by a variation in biodiesel, cetane and density parameters for the fuels subject to the extension of Shell’s approval.
(c) The interests of consumers
Although variations in biodiesel, cetane level and density can affect engine performance, in the absence of clear evidence from stakeholder groups, it is not expected to have significant impacts on consumers. Biodiesel (B20) will be available to specific commercial bulk fuels customers on request and B20 blends will not be available via retail forecourt pumps. The information conditions for the B20 fuel approval should mitigate any operability impacts with fuel/vehicle incompatibility.
(d) The impact on economic and regional development
Shell sources biodiesel for the blended fuel from a regional supplier in Victoria. This company may be seriously impacted if the approval is not extended.
Summary of reasons for the Variation
1. The approval is not expected to be detrimental to the protection of the environment or occupational and public health and safety when taking into account the anticipated supply and timeframe of the approval.
2. There is no evidence to suggest that the interests of consumers will be significantly impacted by supply of this fuel.
3. There appears to be a disadvantage to Shell if its approval is not extended to align with other approvals granted to rival companies with a longer period of approval.
Lee Eeles………….………...........................................................
Acting Assistant Secretary, Department of Sustainability, Environment, Water, Population and Communities
21 September 2012