Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011–12



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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.

Table 9: Fuel sampling statistics






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.




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