Department of Sustainability, Environment, Water, Population and Communities


Operation of the Fuel Quality Standards Act 2000



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Operation of the Fuel Quality Standards Act 2000

Purpose


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 the regulation of fuel and fuel additives; the operations of the Fuel Standards Consultative Committee; the publication of notices about entries in the Register of Prohibited Fuel Additives; enforcement; record keeping and reporting obligations.

Operation


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. New fuel quality and fuel quality information standards for ethanol (E85) automotive fuel came into force on 1 November 2012.

The department continued development of a diesel–biodiesel blend (B20) fuel quality standard.


Compliance and enforcement


The department undertakes intelligence, monitoring, compliance and enforcement activities to detect and deal with 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 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 onsite 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 will be found to be non-compliant with the Act 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 Act 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.

Breaches may result in the issue of an infringement notice or prosecution. Successful prosecutions will 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 Act will be monitored for ongoing compliance and may be the subject of additional site visits.
Table 8: Fuel sampling statistics 2011–12 and 2012–13

Actions

2011–12

2012–13

Compliance incident reports

282

247

Site visits

1071

944

Number of compliant tests

2345

2930

Fuel quality breach

35

32

Ethanol labelling breach

47

41

Documentation requirements breach*

354

197

* The Act and Regulations 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.

Table 9: Enforcement actions 2012–13

Company

Action

Gas Point Guildford West Pty Ltd (operating the Gas Point Guildford West service station in Sydney)

On 5 June 2013 the Federal Court imposed a penalty of $22 500 for twice supplying diesel that did not comply with the Fuel Standard (Automotive Diesel) Determination 2001. The court also granted an injunction restraining the company from supplying diesel that does not comply with the Fuel Standard (Automotive Diesel) Determination 2001 for two years.


Freedom of information


There were two freedom of information requests in the 2012–13 financial year.

Reporting


This section fulfils the reporting requirements of the Fuel Quality Standards Act 2000 (section 71) for the period 1 July 2012 to 30 June 2013.

Monitoring and evaluation


The next statutory review of the Fuel Quality Standards Act 2000 is due to commence in the second half of 2014.

Financial information


The department’s 2012–13 operating costs for the Fuel Quality Standards Act 2000, including staff salaries and allowances, consultancies, advertising and other related expenses, were $2 938 673.00.

Committees


Section 24 of the Fuel Quality Standards Act 2000 establishes the Fuel Standards Consultative Committee as a formal consultation mechanism. Committee membership in 2012–13 is shown in Table 10.
Table 10: Membership of the Fuel Standards Consultative Committee 2012–13

Name

Representing

Start date

Finish date

Paul Barrett

Fuel producers

9 July 2010

9 July 2013

David Bowman

Environment non-government organisation

9 July 2010

9 July 2013

Fraser Brindley

Victorian Government

2 December 2011

4 March 2013

Heather Brodie

Alternative fuels industry

16 November 2009

16 November 2012

Brett Clifford

Northern Territory Government

10 April 2013

10 April 2016

Ann-Louise Crotty

New South Wales Government

10 September 2012

10 September 2015

James Hurnall

Automotive industry

29 May 2012

29 May 2015

Bob Hyde

Tasmanian Government

10 April 2013

10 April 2016

Lana Kovac

Victorian Government

10 April 2013

10 April 2016

Guy Macklan

Trucking industry

9 July 2010

9 July 2013

Mike McCullagh

Independent fuel producers

09 July 2010

18 February 2013

Andrew McDonald

Australian Government Department of Infrastructure and Transport

10 April 2013

10 April 2016

Craig Newland

Consumer interests

24 August 2011

24 August 2014

Jane O’Sullivan

Chair, Australian Government Department of Sustainability, Environment, Water, Population and Communities

17 October 2012

31 July 2013

David Power

Australian Capital Territory Government

6 December 2012

6 December 2015

Linda Rasmussen

Australian Government Department of Infrastructure and Transport

24 August 2011

18 February 2013

Samantha Read

Alternative fuels industry

31 January 2013

31 January 2016

Greg Scott

Northern Territory Government

13 July 2009

13 July 2012

Michael Sheldrick

Australian Government Department of Resources, Energy and Tourism

13 July 2009

13 July 2012

Robin Smit

Queensland Government

25 May 2012

25 May 2015

Kelvyn Steer

South Australian Government

6 December 2012

6 December 2015

Peter Taylor

West Australian Government

24 September 2012

24 September 2015

Stephen Woolcott

Australian Government Department of Resources, Energy and Tourism

10 September 2012

10 September 2015

During 2012–13 the committee had two formal meetings, one in November 2012 and one in May 2013. 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 2012–13 the committee considered and made recommendations on 13 new applications and one extension of an existing approval under section 13 (see Table 11).

Table 11: Approvals granted in 2012–13 (see report glossary for terms)

Name of approval holder

Period of operation

Approved variation of fuel standard: refer to the gazetted grant of approval for complete approval and conditions

Bioworks Australia Pty Ltd

19 December 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

Glencore Singapore Pte. Ltd

19 December 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

International Motorsport Solutions Pty Ltd

20 December 2012
to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 51.2% v/v, DIPE up to 7% v/v, MTBE up to 15% v/v and TBA up to 7% v/v

Just Fuel Petroleum Services Pty Ltd

20 December 2012
to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel (avgas) containing lead up to 0.85 g/L

Just Fuel Petroleum Services Pty Ltd

20 December 2012
to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing ethanol up to 20% v/v and oxygen up to 7% m/m in petrol containing ethanol

Netaway Pty Ltd

20 December 2012
to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist leaded racing fuel containing ethanol up to 15% v/v, lead up to 1.45 g/L, oxygen up to 10% m/m in petrol containing ethanol; and specialist unleaded racing fuel containing benzene up to 5% v/v, ethanol up to 13% v/v, oxygen up to 5% m/m in petrol containing ethanol

Northern Dynamics Pty Ltd

20 December 2012
to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist leaded racing fuel containing lead up to 2.1 g/L, MTBE up to 50.4% v/v and oxygen up to 13.9% m/m in petrol not containing ethanol

VP Racing Fuels
Pty Ltd

20 December 2012
to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 55% v/v, ethanol up to 17% v/v, MTBE up to 55% v/v, olefins up to 55% v/v and oxygen up to 13% m/m in petrol not containing ethanol and up to 13% m/m in petrol containing ethanol

VP Racing Fuels
Pty Ltd

20 December 2012
to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel containing lead up to
1.85 g/L, MTBE up to 55% v/v, olefins up to 60% v/v, oxygen up to 14.57% m/m in petrol not containing ethanol and up to 14.57% m/m in petrol containing ethanol, and sulfur up to 375 mg/kg

BP Australia Pty Ltd

20 December 2012
to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel (avgas), containing lead
up to 0.85 g/L

Race Fuels Pty Ltd

20 December 2012
to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel (avgas) containing lead up to 0.6 g/L and specialist leaded racing fuel containing aromatics up to 54.9% v/v, lead up to 1.65 g/L, MTBE up to 36% v/v, olefins up to 36.2% v/v, oxygen up to 18% m/m in petrol not containing ethanol

Race Fuels Pty Ltd

20 December 2012
to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 54.9% v/v, MTBE up to 36% v/v, olefins up to 36.2% v/v and oxygen up to 18% m/m in petrol not containing ethanol

ACB Group Pty Ltd

20 December 2012
to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 78% v/v, ethanol up to 20% v/v and oxygen up to 7.0% m/m in petrol containing ethanol

The Shell Company of Australia Ltd

11 October 2011
to 30 June 2014

Extension of approvals, from 1 July 2012 to 30 June 2014: variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: 5% biodiesel, with a minimum DCN of 46 and a maximum density of 852 kg/m3; and more than 5% but no greater than 20% biodiesel, with a minimum DCN of 46 and a maximum density of 858 kg/m3



Operation of the Hazardous Waste (Regulation of Exports and Imports) Act 1989

Purpose


The purpose of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 is to regulate the export, import and transit of hazardous waste and to ensure that the waste is managed in an environmentally sound manner.

Operation


In 2012–13, 26 permits were granted and two were refused. Of the 26 permits granted, 15 were for imports and 11 were for exports. Details on each permit application and decision under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 is published in the Australian Government Gazette.

Compliance and enforcement


The department continued to strengthen its enforcement activities and acted in cooperation with the Australian Customs and Border Protection Service to help prevent illegal traffic in hazardous waste. Those with information that may be helpful in stopping illegal exports can contact the department’s hazardous waste unit by calling 1800 803 772 or emailing hwa@environment.gov.au.

Administrative Appeals Tribunal


One application made to the Administrative Appeals Tribunal in 2011–12 was withdrawn by the applicant in 2012–13. The application relates to the review of a decision not to grant a permit under the Hazardous Waste (Regulation of Exports and Imports) Act 1989.

Reporting


This section fulfils the reporting requirements of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 (section 61) for the period 1 July 2012 to 30 June 2013.

An annual report on the implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (Basel Convention) by Australia was submitted to the Secretariat of the Basel Convention during 2012–13. National reporting under the Basel Convention is on a calendar year basis. Published reports are available on the Basel Convention’s website at: www.basel.int/Countries/NationalReporting/StatusCompilations/tabid/1497/Default.aspx.


Financial information


Section 32 of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 prescribes fees for the lodgement of permit applications. This year’s income from fees totalled $23 226.

Committees


Section 58E of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 requires that the minister must establish a committee, to be known as the Hazardous Waste Technical Group, which may be called upon to advise on technical issues associated with the operation of the Act. The Hazardous Waste Technical Group met face-to-face and by teleconference twice during 2012–13 to discuss technical issues associated with the operation of the Act that required the group’s advice.
Table 12: Membership of the Hazardous Waste Technical Group

Name

Appointed

Professor Paul Greenfield (Chair)

1995

Dr Peter Di Marco

1995

Mr John Hogan

1997

Ms Diane Kovacs

1995

Mr Stephen Moore

1995

Dr Peter Nadebaum

1997

Dr Neill Stacey

2000

Dr Jennifer Stauber

1997

Dr Bro Sheffield-Brotherton (Observer)

-

Financial statements

Information on the Hazardous Waste (Regulation of Exports and Imports) Act 1989


and its operation is available at: www.environment.gov.au/settlements/chemicals/hazardous-waste.

Permit applications and decisions under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 are published in the Commonwealth Gazette, available at: www.comlaw.gov.au/Browse/Results/ByPortfolio/Gazettes/Current/Sustainability,%20Environment,%20Water,%20Population%20and%20Communities/0.



Operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

Purpose


The purpose of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 is to:

  • Implement the provisions of the 1985 Vienna Convention for the Protection of the Ozone Layer (Vienna Convention) and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol).

  • Institute specific controls on the manufacture, import, export, distribution and use of ozone-depleting substances (ODSs).

  • Encourage Australian industry to replace ODSs and achieve a faster and greater reduction than is provided for in the Vienna Convention and the Montreal Protocol to the extent that is reasonably possible given the availability of suitable alternative substances and appropriate technology and devices.

  • Control the manufacture, import, export and use of synthetic greenhouse gases (SGGs) that are used to replace ODSs to give effect to Australia’s obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol to the United Nations Framework Convention on Climate Change (Kyoto Protocol).

  • Promote the responsible management of ODSs and SGGs to minimise their effect on the atmosphere.

  • Apply an equivalent carbon price levy on imports and manufacture of SGGs listed under the Kyoto Protocol to encourage industry and consumers to reduce emissions.

Operation

Licensing

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 provides for a licensing system to enable Australia to meet its international obligations. The Act applies consistent controls on the use of ODSs, and the SGGs used to replace them, to minimise the emission of these substances to the atmosphere.

The Act also prohibits the import or manufacture of certain products, listed in Schedule 4, that contain or use a specified ODS unless the minister grants an exemption.

Five types of licences can be issued:


  • controlled substances licences

  • ODSs/SGG equipment licences (EQPL)

  • essential-uses licences

  • used-substance licences

  • exemptions under Section 40.

A description of each of the licence types can be found on the department’s website at: www.environment.gov.au.

There were 1241 licences active during the 2012–13 licensing period. This figure does not include one-off licences for imports of less than five items of equipment containing less than 10 kilograms of gas.



Table 13: Active licences as at 30 June 2013

Type of licence

Number

Controlled substances hydrochlorofluorocarbons (HCFCs)

8

Controlled substances hydroflurocarbons (HFCs)

46

Controlled substances methyl bromide

8

ODSs/SGG equipment licences

1077

Used substances

3

Essential-uses

0

Section 40 exemptions

21


Quota

Australia has legally binding obligations under the Montreal Protocol to phase out hydrochlorofluorocarbons (HCFCs) and the Act prescribes the quota for the quantity of controlled HCFCs that can be imported into Australia. The quota will reduce from 40 ozone-depleting potential1 (ODP) tonnes per year for 2012 and 2013 to 10 ODP tonnes per year in 2014 and 2015. From 2016 until completion of the phase-out in 2030, 2.5 ODP tonnes can be imported annually for equipment servicing.

In 2012, 464.61 ODP tonnes of bulk ODSs were imported into Australia. A further 1.95 ODP tonnes were imported in refrigeration and air-conditioning equipment.

In 2012, 13 773.36 CO2 equivalent (CO2e) kilotonnes of bulk hydrofluorocarbons were imported into Australia. A further 4067.00 CO2e kilotonnes of hydrofluorocarbons, 163.01 CO2e kilotonnes of sulfur hexafluoride and 7.64 CO2e kilotonnes of perfluorocarbons were imported into Australia in refrigeration, air-conditioning and fire protection equipment.

Revenue

The Act provides for the collection of licence application fees at the levels set under the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 and import and manufacturing levies set under the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 and Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995.4

The Act also established the Ozone Protection and Synthetic Greenhouse Gas (SGG) Special Account. This allows revenue from licensing, the cost recovery component of the import and manufacture levies and the National Halon Bank to be directed towards the cost of administration, phase-out programs for ODSs, emission minimisation programs and the costs associated with the management of the National Halon Bank.

Levies on imports and manufacture under a controlled substance licence are payable each quarter and are applied according to the quantity and ozone-depleting potential of the hydrochlorofluoroccarbons (HCFCs), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexaflouride or methyl bromide imported or manufactured. Australia has not manufactured ODSs since 1996 and has never manufactured HFCs or PFCs.

Since 1 July 2012 an equivalent carbon price levy on SGGs has been applied through the legislation. The levy is to encourage industry and consumers to reduce emissions. Revenue from the levy is returned to government.

Funds received during 2012–13 from operation of the National Halon Bank and licence fees and levies are shown in Table 14.

Table 14: Ozone protection and synthetic greenhouse gases special account receipts


Activity

Amount received in 2012–13

Levies

$1 871 777.38

Licence fees

$1 447 924.65

National Halon Bank sales and services

$462 450.58

Refrigeration fees*

$5 746 987.64

Penalties

$31 198.73

Fire protection fees^

$76 492.82

Total

$9 636 831.80

* The Australian Refrigeration Council administers the refrigeration and air-conditioning industry permit scheme and collects permit application fees on behalf of the department.

^ The Fire Protection Association Australia administers the fire protection industry permit scheme and collects permit application fees on behalf of the department.



Projects funded from the Ozone Protection and Synthetic Greenhouse Gases Account

The department supports ozone research, including by the implementation of the Ozone Science Strategy. The goal is to support nationally coordinated stratospheric ozone research in Australia that contributes to a better understanding globally of ozone protection and recovery. The activities that occur under the strategy include:

  • supporting a group of Australian ozone scientists

  • an annual top-up scholarship to a PhD student undertaking research that will improve our understanding of atmospheric ozone depletion and recovery

  • providing guidance to the Australian Government and research organisations on priorities for ozone research and encouragement to align research priorities with Montreal Protocol priorities.

The Ozone Science Group is an informal group made up of Australian scientists and departmental representatives interested in stratospheric ozone science. Their work assists with the implementation of the Ozone Science Strategy. It comprises key Australian ozone scientists from the Australian Antarctic Division, Bureau of Meteorology, CSIRO Marine and Atmospheric Research, the Australian Radiation Protection and Nuclear Safety Agency and a number of research universities.
Product stewardship

Holders of import licences under the Act are required to meet product stewardship obligations by joining an approved product stewardship scheme as a licence condition. The Refrigerant Reclaim Australia scheme requires its members to pay a levy of $2 for every kilogram of ODS or SGG refrigerant that they import. This money is used to fund the collection of used refrigerant at end-of-life and its subsequent destruction.

From 1 July 2013 the Australian Government is providing refrigerant contractors with an incentive payment of $1.50 per kilogram of waste SGGs and ODSs destroyed. This is a 50 per cent increase on the $3.00 per kilogram payment by Refrigerant Reclaim Australia for waste gas recovered and provided to Refrigerant Reclaim Australia for destruction. The Destruction Incentives Program supports the objectives of the Act.


End-use regulations

The Act creates regulation making powers to allow the Australian Government to develop end-use controls on acquisition, purchase, sale, handling, use, storage and disposal of ODSs and SGGs.

End-use regulations have been implemented for the use of ODSs and SGGs in the refrigeration, air conditioning and fire protection industries. Regulations also control the use of methyl bromide as a feedstock and as a fumigant for approved critical uses and quarantine and pre-shipment uses.

End-use regulations assist Australia to meet its phase-out obligations under the Montreal Protocol. They also lead to reduced emissions of ODSs and SGGs through the establishment of minimum industry standards.

Fire protection

The fire protection industry permit scheme is a competency-based permit scheme administered by the Fire Protection Association Australia (FPAA) on behalf of the Australian Government. Licences are issued to technicians who work on equipment containing controlled fire extinguishing agents; authorisations are issued to businesses that acquire, possess and dispose of controlled fire extinguishing agents; and Halon Special Permits are issued for the possession of halon for use in fire protection equipment. More information can be found on the FPAA website at: www.fpaa.com.au.

At 30 June 2013 the FPAA had issued 138 authorisations, 1407 licences and 38 Halon Special Permits.


Refrigeration and air conditioning

The refrigeration and air conditioning industry permit scheme is a competency-based permit scheme. It requires technicians who work on equipment containing fluorocarbon refrigerants to hold a refrigerant handling licence; and businesses that store, possess or dispose of fluorocarbon refrigerants to hold a refrigerant trading authorisation. The scheme is administered by the Australian Refrigeration Council (ARC) on behalf of the Australian Government. More information can be found on their website at: www.arctick.org.

At 30 June 2013 the ARC had issued 17 057 refrigerant trading authorisations and 55 253 refrigerant handling licences.


Compliance and enforcement


The department undertakes compliance and enforcement activities under the Act relating to the manufacture, import and export of ODSs and SGGs, including equipment containing ODSs and SGGs.
In cooperation with the Australian Customs and Border Protection Service, the department has a range of monitoring and inspection arrangements in place to ensure compliance with the Act.

The department promotes self-regulation and encourages the community to act in accordance with its administered legislation and programs through measures such as targeted communication and education activities, site inspections to view records or examine or test samples of ODSs and SGGs and provision of timely information and advice.



Where education, self-regulation or assisted self-regulation fails to achieve compliance with the Act, the department may employ a range of administrative, civil and criminal sanctions to ensure the most appropriate response to breaches of the legislation. In some cases, the department may seek an injunction from the Federal Court.

Table 15: Number of compliance and enforcement activities undertaken in 2012–13

Compliance actions

Total

Site inspections undertaken

167

Warning letters sent

53

The ARC conducts a range of compliance and education audits including onsite (planned, scheduled audits), remote (paper-based), desktop (telephone-based) and educational audits. The ARC refers cases of extended non-compliance to the department for management. The ARC’s compliance and education activities during 2012–13 are shown in Table 16.

Table 16: Number of compliance and education activities undertaken by ARC in 2012–13

Compliance actions

Total

ARC audits (onsite and remote) undertaken

5121

Permit holders found compliant at time of ARC audit, or that demonstrated compliance as a result of education activities by the ARC

4734

The FPAA’s compliance activities have an educational focus and include site visits and awareness campaigns for industry and registered training organisations. In 2012–13, the FPAA undertook a pilot project to strengthen and streamline compliance activities. The project targeted companies that have lapsed permits or were identified as engaged in work that may deal with controlled fire extinguishing agents but do not hold a permit and aimed to raise their awareness of legislative obligations. The FPAA refers non-compliant companies and technicians to the department for appropriate enforcement action.

Financial information


In 2012–13 the department paid the ARC $5 130 893.37 (GST exclusive) for the operation of the refrigeration and air conditioning industry permit scheme. The department paid the FPAA $465 738 (GST exclusive) for operating the fire protection industry permit scheme over the same period.
Montreal Protocol’s Multilateral Fund

Australia provides financial assistance through the Montreal Protocol’s Multilateral Fund to assist developing countries to comply with the phase-out requirements under the protocol. In 2013 Australia was one of 14 members of the Executive Committee of the Multilateral Fund. The committee oversees governance of the funding, including considering project approvals and outcomes. Australia chaired the Executive Committee in 2011. Australia continued to participate in the Executive Committee in 2013, sharing membership with Canada.

Operation of the Water Efficiency Labelling and Standards Act 2005

Purpose


The Water Efficiency Labelling and Standards Act 2005 (the WELS Act) provides for the operation of a National Water Efficiency Labelling and Standards (WELS) scheme, implemented cooperatively by Australian, state and territory governments. The scheme aims to reduce the demand for water by requiring that comparative water efficiency information be provided to prospective purchasers of specified water-using products, setting mandatory minimum water efficiency standards in some instances and promoting the adoption of water-efficient technologies.

Showers, dishwashers, clothes washing machines, toilet equipment (including urinals) and taps must be registered with the scheme and display a water efficiency rating label when offered for supply. Minimum water efficiency requirements are specified for clothes washing machines and toilets. Based on analysis commissioned by the department, it is estimated that the current scheme will reduce domestic water use by more than 800 gigalitres between 2005 and 2021.


Operation


There are currently 20 663 models registered in the WELS scheme. The number of registrations has varied significantly during the year as the scheme transitioned between the previous five-year registration period and family of models provisions to the new annual registrations and changes to the definition of a model. During 2012–13, the department’s Water Information Line received more than 1098 telephone inquiries on its 1800 number regarding the WELS scheme. In addition, WELS scheme staff provided individual assistance to product manufacturers and suppliers, particularly giving guidance on product registrations, through telephone and online enquiries.

Compliance and enforcement


The department has regulatory responsibilities in respect to managing compliance with the WELS scheme. The WELS Scheme Enhancement 2012 allowed for increased powers, including the application of civil penalties, when managing issues of non-compliance. The WELS Act requires that all products be registered and labelled at all points in the supply chain.

Throughout 2012–13 there has been an increased emphasis on shifting the compliance activities towards a whole of supply chain operation to include distributors and suppliers.

In 2012–13 there were 53 compliance actions undertaken by the Regulator in conjunction with the administration of the enforceable undertakings. Actions were undertaken against retail, manufacturer and wholesale suppliers and used both site and internet inspections to determine if suppliers were complying with WELS obligations.

Overall compliance with WELS obligations is improving with a steadily growing group of suppliers integrating WELS requirements into their business processes to ensure compliance. All inspections and follow-up enforcement actions were undertaken in accordance with the department’s compliance and enforcement policy.


Reporting


This section is prepared in accordance with section 75 of the WELS Act. It covers the operation of the WELS Scheme from 1 July 2012 to 30 June 2013.

The WELS website is at: www.waterrating.gov.au.


Financial information


A copy of the approved WELS Scheme Cost Recovery Impact Statement is available at: www.environment.gov.au

Operation of the Water Act 2007

Purpose


The Water Act 2007 provides the Commonwealth legal framework for the management of the water resources of the Murray–Darling Basin and for other matters of national interest in relation to water and water information and for related purposes.

The introduction of the Water Act 2007 responded to a need for a sustainable and integrated management approach to the water resources of the Murray–Darling Basin.

The Water Act 2007 commenced on 3 March 2008 and implemented key reforms for water management in Australia. The Water Act 2007:


  • Establishes the Murray–Darling Basin Authority (MDBA) with the functions and powers, including enforcement powers, needed to ensure that Basin water resources are managed in an integrated and sustainable way.

  • Requires the MDBA to prepare the Murray–Darling Basin Plan (the Basin Plan)—a strategic plan for the integrated and sustainable management of water resources in the Murray–Darling Basin.

  • Establishes a Commonwealth Environmental Water Holder (CEWH) to manage the Commonwealth’s environmental water holdings to protect and restore the environmental assets of the Murray–Darling Basin and outside the Basin where the Commonwealth holds water.

  • Provides the Australian Competition and Consumer Commission with a key role in developing and enforcing water charge and water market rules along the lines agreed in the National Water Initiative.

  • Gives the Bureau of Meteorology water information functions that are in addition to its existing functions.

Operation


In 2012–13 key measures under the Water Act 2007 were undertaken to meet the reform agenda for the Murray–Darling Basin. These measures were:
1. Basin Plan

On 22 November 2012 the Murray–Darling Basin Plan—a legislative instrument under the Water Act—was made. Based on the best available information and scientific analysis, the Basin Plan sets a long-term environmentally sustainable level of take of 10 873 gigalitres per year (GL/y) for surface water and 3324 GL/y for groundwater. For surface water this requires a 2750 gigalitre (GL) reduction from current levels of consumption. The reductions required to reach these environmentally sustainable levels of take are supported by the Commonwealth’s water recovery programs.

As required by the Water Act 2007, the core elements of the Basin Plan are:



  • long-term average sustainable diversion limits (SDLs)

  • an environmental watering plan to optimise environmental outcomes for the Basin

  • a water quality and salinity management plan

  • requirements for the accreditation of state water resource plans

  • a mechanism to manage critical human water needs

  • requirements for monitoring and evaluation of the effectiveness of the Basin Plan.

The Basin Plan will ensure that Basin water resources are used and managed in a way that optimises social, economic and environmental outcomes.
2. Amendment of the Water Act 2007

To assist in the implementation of Murray–Darling Basin reform, two amendments to the Water Act 2007 were also made in 2012–13.

The Water Amendment (Long-term Average Sustainable Diversion Limit Adjustment) Act 2012 (SDL Act) received royal assent on 21 November 2012. The SDL Act amended the Water Act to enable the long-term average sustainable diversion limits (SDLs) set by the Basin Plan to be adjusted within clearly defined limits without invoking the formal Basin Plan amendment process. The scope for adjustment is net plus or minus five per cent of the SDL for Basin water resources as a whole. The amendments also allowed the Basin Plan to include in the requirements for the accreditation of water resource plans that a water resource plan includes a mechanism for incorporating and adjusting a relevant change to the SDL for that water resource plan area.

The Water Amendment (Water for the Environment Special Account) Act 2013 (Special Account Act) received royal assent on 15 February 2013. The Special Account Act amends the Water Act 2007 to establish the Water for the Environment Special Account pursuant to section 21 of the Financial Management and Accountability Act 1997. Over a 10-year period from 2014–15 the special account will fund infrastructure to acquire an additional 450 GL environmental water and remove constraints on the efficient use of environmental water in the Murray–Darling Basin.

3. Amendment of the Water Regulations

To further assist the implementation of the Basin Plan, the Water Regulations 2008 were also amended in 2012–13.

The Water Amendment Regulation 2012 (No. 2), made 27 September 2012, further excluded certain water resources in South Australia and Victoria from the definition of ‘Basin water resources’ as these water resource areas either sit on the edge of state water planning areas or fall partially inside and partially outside the Basin Boundary. This amendment regulation also recognised the adoption by Queensland of the Water Act risk assignment framework and prescribed nine Victorian water resource plans as transitional water resource plans.


Freedom of information


One Freedom of information request related to the Water Act legislative framework was received in 2012–13. This request related to the Water Amendment (Water for the Environment Special Account) Act 2013.

Reporting


The Water Act 2007 requires the Commonwealth Environmental Water Holder and the MDBA to provide annual reports to the minister.

The Water Act also requires the National Water Commission to provide a written report of audits it must conduct in relation to the Basin Plan. The first audit of the Basin Plan was provided in March 2013 and is publicly available at: www.nwc.gov.au/__data/assets/pdf_file/0007/29095/MDB-Plan-implementation-initial-report.pdf.


Financial statement


The Water Amendment (Water for the Environment Special Account) Act 2012 will appropriate $1.775 billion to the special account over a 10-year period from 2014–15
to 2023–24.


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