Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011-12
Department of Sustainability, Environment, Water, Population and Communities, 2012
ISSN 1441-9335
Outcome 2: Operation of the Fuel Quality Standards Act 2000
The Fuel Quality Standards Act 2000 is the legislative basis for national fuel quality and fuel quality information standards for Australia. The Fuel Quality Standards Act 2000 regulates the quality of fuel supplied in Australia and ensures that, where appropriate, information about fuel is provided at the point at which the fuel is supplied.
Fuel quality standards exist for petrol, automotive diesel, biodiesel and liquefied petroleum gas (autogas). A fuel quality information standard exists for ethanol, when blended with petrol.
The Fuel Quality Standards Act 2000 sets out criminal and civil penalties for non-compliance with Australian fuel quality standards. The department’s monitoring, compliance and enforcement team takes fuel samples for testing against the appropriate standard and investigators take any necessary enforcement action. For example, the department may negotiate an enforceable undertaking, or seek an interim or permanent injunction from the Federal Court.
The Fuel Standards Consultative Committee is an advisory body to the minister on fuel matters. The committee was established under the Fuel Quality Standards Act 2000 and the minister appoints members from each state and territory, the Australian Government and various organisations with interests in fuel production and supply, vehicle manufacturing, consumer concerns and environmental protection.
When a state or territory has fuel quality standards in place, the Australian Government standards operate concurrently. State or territory standards apply when they regulate a fuel characteristic not covered by the Australian Government standards.
The minister may vary fuel standards on a short-term basis and for longer periods after consultation with the committee.
The minister must keep a Register of Prohibited Fuel Additives. There are currently no entries on the register.
Under the Fuel Quality Standards Act 2000, fuel suppliers must keep appropriate records and provide annual statements to the department.
Purpose of the Act
The purpose of the Fuel Quality Standards Act 2000 is to regulate the quality of fuel in Australia to:
- reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems
- facilitate the adoption of better engine and emission control technology and allow for more effective operation of engines
- ensure that appropriate information about fuel is provided when it is supplied to the public.
The Fuel Quality Standards Regulations 2001 cover:
- regulation of fuel and fuel additives
- operations of the committee
- publication of notices about entries in the Register of Prohibited Fuel Additives
- enforcement
- record keeping and reporting obligations.
Operational aspects of the Act
Fuel quality standards
Fuel Quality Standard Determinations set specific standards for petrol, automotive diesel, biodiesel and autogas. The determinations specify standards for a range of parameters, which address both environmental and operational performance.
The review of the Fuel Standard (Autogas) Determination 2003 progressed during 2011-12, following further consultation with the liquid petroleum gas industry.
The development of a fuel quality and fuel quality information standard for ethanol (E85) automotive fuel progressed during 2011-12 after submissions were made on the public position paper in June and July 2011.
The department released a discussion paper on the development of a diesel-biodiesel blend (B20) fuel quality standard in March 2012. Submissions regarding the selection, specification and test methods are being considered.
Amendments to the Fuel Quality Standards Regulations 2001
The department is pursuing a series of amendments to the Fuel Quality Standards Regulations 2001 to support the 2009 amendments to the Fuel Quality Standards Act 2000 and respond to emerging trends in the fuel industry with fuel blends. The amendments to the Fuel Quality Standards Regulations 2001 are expected to be finalised in the second half of 2012.
Compliance and enforcement
The department undertakes intelligence, monitoring, compliance and enforcement activities to detect and address non-compliance under the Fuel Quality Standards Act 2000 and the Fuel Quality Standards Regulations 2001.
Authorised fuel quality inspectors conduct site visits across Australia at all stages of the fuel supply chain—including importers, refineries, distributors and service station forecourts—to test fuel against the relevant standards, inspect ethanol-blend petrol labels and check fuel delivery documentation. The site-visits program uses information provided by members of the public and industry as important intelligence for informing monitoring and enforcement activities.
Fuel samples are tested on-site for compliance with the standards and, if required, are further tested at an independent laboratory accredited by the National Association of Testing Authorities. Testing methods are accredited to international standards.
A site is determined to be non-compliant with the Fuel Quality Standards Act 2000 where laboratory tests indicate a fuel determination has not been met, fuel quality information is not displayed, documents are not correct, or documents are not maintained.
In all cases, a breach of the Fuel Quality Standards Act 2000 will result in a warning letter being issued to the regulated entity requesting that the fuel no longer be supplied, fuel quality information be displayed, or delivery documentation be corrected and/or maintained.
In some cases, the department may negotiate an enforceable undertaking, or seek an interim or permanent injunction from the Federal Court to ensure that non-compliant fuel is not further supplied.
For example, on 17 October 2011, the Federal Court endorsed an undertaking made by Go Joe’s Pty Ltd, Sefton, NSW, to not supply non-compliant diesel for two years and to pay legal costs of $14,500 to the department.
On 23 November 2011, a Federal Court injunction was sought and HML Investments Pty Ltd was ordered to only supply diesel which meets the Fuel Standard (Automotive Diesel) Determination 2001. The injunction is in place for two years and the respondent agreed to pay costs of $16,000 to the department.
Breaches may result in the issue of an infringement notice or prosecution. Successful prosecutions result in a public announcement being made by the department.
The department may also disclose information to other government agencies, including state and territory consumer protection agencies and the Australian Taxation Office.
Sites found to have breached the Fuel Quality Standards Act 2000 will be monitored for ongoing compliance and may be the subject of additional site visits.
| 2010-11 | 2011-12 | |
|---|---|---|
| Compliance incident reports | 207 | 282 |
| Site visits | 623 | 1071 |
| Number of compliant tests | 2896 | 2345 |
| Fuel quality breach | 31 | 35 |
| Ethanol-blend petrol labelling breach | 56 | 47 |
| Documentation requirements breach* | 145 | 660 |
* The Fuel Quality Standards Act 2000 and Fuel Quality Standards Regulations 2001 require operators of service stations to keep and maintain records, including delivery documentation, stock reconciliation and fuel testing records in relation to the supply of fuel, at the premises where the fuel is supplied for two years. Fuel suppliers must also provide documentation to the supply site within 72 hours of the delivery of fuel.
Audits of the terms and conditions of approvals to vary fuel standards under Section 13 of the Fuel Quality Standards Act 2000 are also conducted by fuel quality inspectors. During 2011-12 four audits were completed.
Freedom of Information
No freedom of information requests were received during 2011-12 involving the Fuel Quality Standards Act 2000 and Regulations.
Administrative Appeals Tribunal
No Administrative Appeals Tribunal appeals were received.
Reporting
This section fulfils the reporting requirements of the Fuel Quality Standards Act 2000 (section 71) for the period 1 July 2011 to 30 June 2012.
Monitoring and evaluation
The next statutory review of the Fuel Quality Standards Act 2000 is due to commence in the second half of 2012.
Financial information
The department’s 2011-12 operating costs for the Fuel Quality Standards Act 2000, including staff salaries and allowances, consultancies, advertising and other related expenses, were $2,902,422.
Committees
Section 24 of the Fuel Quality Standards Act 2000 establishes the Fuel Standards Consultative Committee as a formal consultation mechanism. The committee is required to include one representative from each state and territory and the Australian Government. It must also include one person who represents fuel producers, one representing a non-government body with an interest in the protection of the environment, and one representing the interests of consumers. The minister may also appoint other members to the committee. In 2011-12 the committee included representatives from the motor vehicle manufacturing industry, independent fuel importers and suppliers, the alternative and renewable fuels industry, and the truck manufacturing industry (see Table 10).
| Name | Representing | Start date | Finish date |
|---|---|---|---|
| Phil Allan | Automotive industry | 24/08/2011 | 18/04/2012 |
| Paul Barrett | Fuel producers | 09/07/2010 | 09/07/2013 |
| Fraser Brindley | Victorian Government | 02/12/2011 | 02/12/2014 |
| David Bowman | Environment non- government organisation | 09/07/2010 | 09/07/2013 |
| Heather Brodie | Alternative fuels industry | 16/11/2009 | 16/11/2012 |
| Ann-Louise Crotty | New South Wales Government | 13/07/2009 | 13/07/2012 |
| Matthew Dadswell | Chair, Australian Government Department of Sustainability, Environment, Water, Population and Communities | 13/12/2011 | 13/12/2014 |
| Anne-Marie Delahunt | Chair, Australian Government Department of Sustainability, Environment, Water, Population and Communities | 09/07/2010 | 13/12/2011 |
| James Hurnall | Automotive industry | 29/05/2012 | 29/05/2015 |
| Bob Hyde | Tasmanian Government | 16/11/2009 | 16/11/2012 |
| Guy Macklan | Trucking industry | 09/07/2010 | 09/07/2013 |
| Mike McCullagh | Independent fuel producers | 09/07/2010 | 09/07/2013 |
| Scott McDowall | Queensland Government | 09/07/2010 | 09/05/2012 |
| Craig Newland | Consumer interests | 17/06/2008 | 24/08/2014 |
| Jane O’Sullivan | Chair 1, Australian Government Department of Sustainability, Environment, Water, Population and Communities | 01/06/2012 | 30/08/2012 |
| David Power | Australian Capital Territory Government | 16/11/2009 | 16/11/2012 |
| Linda Rasmussen | Australian Government Department of Infrastructure and Transport | 24/08/2011 | 24/08/2014 |
| Greg Scott | Northern Territory Government | 13/07/2009 | 13/07/2012 |
| Michael Sheldrick | Australian Government Department of Resources, Energy and Tourism | 13/07/2009 | 30/05/2012 |
| Robin Smit | Queensland Government | 25/05/2012 | 25/05/2015 |
| Kelvyn Steer | South Australian Government | 16/11/2009 | 16/11/2012 |
| Diana Wright | Chair 2, Australian Government Department of Sustainability, Environment, Water, Population and Communities | 01/11/2011 | 01/02/2012 |
Notes:
1 Appointed as temporary Chair for the June 2012 meeting as the substantive Chair Matthew Dadswell was unavailable.
2 Appointed as temporary Chair for the November 2011 meeting as the substantive Chair Anne-Marie Delahunt was unavailable.
During 2011-12 the committee had two formal meetings, one in November 2011 and one in June 2012. The committee also considered several issues out of session.
Under section 24A the minister must consult the committee before:
- granting an approval
- making a fuel quality standard
- making a fuel quality information standard
- deciding whether to enter a fuel additive to, or remove a fuel additive from, the Register of Prohibited Fuel Additives
- preparing guidelines for more stringent fuel standards.
Under section 13 of the Fuel Quality Standards Act 2000, the committee also provides advice on applications to vary fuel standards, including recommendations on the conditions to be applied. In 2011-12 the committee considered and made recommendations on eight new applications and 22 extensions of existing approvals under section 13.
| Name of approval holder | Period of operation | Approved Variation of Fuel Standard: refer to the gazetted grant of approval for complete approval and conditions | Amendment |
|---|---|---|---|
| Australian Biodiesel Group Ltd Australian Renewable Fuels Adelaide Pty Ltd Australian Renewable Fuels Picton Pty Ltd Biodiesel Producers Ltd Central State Fuels Pty Ltd Eagle Fuels Pty Ltd, Mogas Regional Pty Ltd. Eastern Great Southern Petroleum EnviroOil Co of Australia Pty Ltd Freedom Fuels Terminalling Pty Ltd Future Fuels Australia Pty Limited Kifuel Pty Ltd Logicoil Pty Ltd (formerly Pre-Logic Pty Ltd) Macquarie Oil Company Mogas Regional Pty Ltd Neumann Petroleum Pty Ltd North Queensland and Pacific Biodiesel Pty Ltd Pro Green Biofuels Pty Ltd North Queensland and Pacific Biodiesel Pty Ltd Pro Green Biofuels Pty Ltd Smorgon Fuels Pty Ltd Southern Renewable Fuels Pty Ltd The Biodiesel Station Pty Ltd The National Biofuels Group Pty Ltd |
From 01/07/2012 to 01/07/2014. | Extension of approvals, from 1 July 2012 to 30 June 2014: variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v. | Amendment of B20 approvals extending end date to 30 June 2014. |
| Gull Petroleum (WA) Pty Ltd | From 01/07/2012 to 30/06/2013. | Extension of approval, from 1 July 2012 to 30 June 2013: variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v. | Amendment of B20 approval extending end date to 30June 2013. |
| Consolidated Biodiesel Pty Ltd | From 27/06/2012 to 30/06/2014. | Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v. | |
| Caltex Australia Petroleum Pty Ltd | From 24/05/2012 to 24/05/2014. | Variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: a maximum of 5% biodiesel content (B5) containing a minimum derived cetane number (DCN) of 46 and a maximum density of 852 kg/m3; and more than 5% but no greater than 20% biodiesel content (B20) containing a minimum DCN of 46 and a maximum density of 860 kg/m3. | |
| Mobil Oil Australia Pty Ltd | From 24/05/2012 to 24/05/2014. | Variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: a maximum of 5% biodiesel content (B5) containing a minimum DCN of 46 and a maximum density of 852 kg/m3; and, more than 5% but no greater than 20% biodiesel content (B20) containing a minimum DCN of 46 and a maximum density of 860 kg/m3. | |
| VP Racing Fuels Pty Ltd | From 11/11/2011 to 31/12/2012. | Variation of approval, removing 1 regulated person from the 20 January 2011 approval to supply specialist leaded and unleaded racing fuels. | Removal of 1 regulated person. |
| BP Australia Pty Ltd | From 25/01/2012 to 31/12/2012. | Variation of approval, adding 8 regulated persons to the 20 January 2011 approval to supply leaded racing fuel (avgas). | Addition of 1 regulated person. |
| BP Australia Pty Ltd | From 25/01/2012 to 31/12/2012. | Corrigenda variation of approval, adding 8 regulated persons to the 20 January 2011 approval to supply leaded racing fuel (avgas). | Addition of 8 regulated persons. |
| Gull Petroleum (WA) Pty Ltd | From 20/12/2011 to 30/06/2012. | Variation of approval, adding 1 regulated person to the 26 February 2009 approval to supply diesel with a biodiesel content of more than 5% but no greater than 20% v/v. | Addition of 1 regulated person. |
| VP Racing Fuels Pty Ltd | From 11/11/2011 to 31/12/2012. | Variation of approval, adding 1 regulated person to the 20 January 2011 approval to supply specialist leaded and unleaded racing fuels. | Addition of 1 regulated person. |
| The Shell Company of Australia Ltd | From 11/10/2011 to 31/10/2012. | Variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: 5% biodiesel (B5), with a minimum DCN of 46 and a maximum density of 852 kg/m3; and more than 5% but no greater than 20% biodiesel (B20), with a minimum DCN of 46 and a maximum density of 858 kg/m3. | |
| Kifuel Pty Ltd | From 16/08/2011 to 30/06/2012. | Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v. | |
| Petrochem Carless Limited | From 16/08/2011 to 15/09/2011. | Variation to the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist racing fuel containing MTBE up to 14% v/v and phosphorus up to 0.0260 g/L. | |
| The Shell Company of Australia Ltd | From 16/08/2011 to 30/06/2013. | Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel in the Cocos (Keeling) Islands containing up to 40 mg/kg sulfur. | |
| IOR Energy Pty Ltd | From 16/08/2011 to 31/12/2013. | Variation of the Fuel Standard (Automotive Diesel) Determination to supply diesel with minimum density of 790 kg/m3 to commercial users for underground mining use and to supply of diesel with minimum density of 800mg/kg3 and maximum sulfur content of 50 mg/kg for commercial users through IOR’s outlets in regional areas of western Queensland and north-western New South Wales. |
Glossary of terms
- Avgas
- Aviation-grade leaded petrol, usually containing levels of lead between 0.56g/L and 0.85g/L. May be supplied under approval, often as racing fuel 100, the 100 being the octane rating of the fuel.
- B5
- Blends of diesel and biodiesel where the biodiesel component is no greater than 5 per cent.
- B20
- Blends of diesel and biodiesel where the biodiesel component is above 5 per cent but no greater than 20 per cent.
- DCN
- Derived cetane number.
- E85
- Blend of between 70 per cent and 85 per cent ethanol, with the remainder petrol.
- g/L
- Grams per litre.
- kg/m3
- Kilograms per metre cubed.
- mg/kg
- Milligrams per kilogram.
- MTBE
- Methyl tertiary butyl ether.
- Regulated person
- A person, other than the approval holder, authorised to supply fuel in accordance with the conditions of an approval to vary a fuel standard.
- v/v
- Volume by volume.
