Part 2.1: Exemption from the minimum biofuel requirements

Find out about grounds for exemptions from the minimum biofuel requirements and applying for an exemption.

A volume fuel retailer who fails to comply with a minimum biofuel requirement is guilty of an offence, unless they hold an exemption. However, there are defences to a prosecution for failure to comply with a minimum biofuel requirement, which are set out in section 9A(2) of the Act.

2.1 Grounds for exemption

A volume fuel retailer may apply for an exemption from a biofuels requirements, including on the following grounds:

1. In the case of an exemption from the requirement to sell 6% ethanol, the retailer has taken all reasonable action to:
   1. upgrade the retailer’s infrastructure to enable it to distribute sufficient petrol-ethanol blend to ensure compliance
   2. ensure the availability of facilities for the sale of petrol-ethanol blend at the retailer’s service stations
   3. secure sufficient supplies of ethanol or petrol-ethanol blend to comply (on a continuing basis)
   4. market petrol-ethanol blend (on a continuing basis), including by ensuring that at each service station at which E10 is sold, the price of E10 is conspicuously displayed on a sign alongside the price of other fuels
   5. ensure that all E10 sold by the retailer contains at least 9% ethanol (on a continuing basis), or
2. In the case of an exemption from the requirement to sell 2% biodiesel, the retailer has taken steps mirroring 1.1-1.4 above.” (See clause 10 of Biofuels Regulation), or
3. The retailer has otherwise taken all reasonable steps to comply with the biofuels requirements, or
4. In the case of an exemption from the requirement to sell 6% ethanol or offer a petrol-ethanol blend, it is not economically viable for the retailer to comply:
   1. because the wholesale price of ethanol exceeded the reasonable wholesale price determined by IPART
   2. because of the price at which the retailer was reasonably able to produce or obtain petrol-ethanol blend for retail sale
   3. on any other grounds, or
5. In the case of an exemption from the requirement to offer a petrol-ethanol blend, it is not economically viable for the retailer to comply because:
   1. the retailer, despite their best efforts, has not been able to secure finance to install or upgrade infrastructure
   2. the capital costs of installing or upgrading infrastructure made it not economically viable to comply, considering the price that would have to be charged for the petrol-ethanol blend to recover those costs
   3. if the service station is in a remote or regional area, the recurrent costs of transporting petrol-ethanol blend to the service station made it not economically viable to comply, considering the price that would have to be charged for the petrol-ethanol blend to recover those costs
   4. the combination of the costs of infrastructure upgrades and recurrent transport costs (for stations in a remote or regional area) made it not economically viable to comply, considering the price that would have to be charged for the petrol-ethanol blend to recover those costs, or
6. In the case of the requirement to sell 2% biodiesel, it is not economically viable to comply:
   1. because of the price at which the retailer is reasonably able to produce or obtain biodiesel blend for retail sale, or
   2. on any other grounds, or
7. In the case of any of the biofuels requirements that:
   1. an exemption is reasonable to allow the retailer a period within which to take the steps required to establish a defence for failure to comply
   2. compliance may result in a risk to public health and safety, or
8. There are other extraordinary circumstances justifying the grant of the exemption.