ATO Interpretative Decision
ATO ID 2006/194
Energy Grants (Cleaner Fuels) Scheme: eligibility - proportion of diesel fuel permitted in biodiesel blend
FOI status: may be released
Status of this decision: Decision Current
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Does the proportion of diesel that is blended with biodiesel affect the eligibility of a biodiesel blend under Part 2 of the Energy Grants (Cleaner Fuels) Scheme Act 2004 (EGCFS Act)?
No. The proportion of diesel that is blended with biodiesel does not affect the eligibility of a biodiesel blend under Part 2 of the EGCFS Act.
The entity is registered for a cleaner fuel grant under section 9 of the Product Grants and Benefits Administration Act 2000 .
The entity is licensed to manufacture biodiesel and biodiesel blends.
The entity purchases automotive diesel.
The entity blends the biodiesel it manufactures with diesel.
The entity enters for home consumption the biodiesel blend and pays excise duty at the appropriate rate.
The entity is seeking a cleaner fuel grant to offset the excise duty it pays on the blend.
Reasons for Decision
Under the cleaner fuels grant scheme an entity may be entitled to a grant for an amount of cleaner fuel that it manufactures.
A cleaner fuel, for the purposes of the scheme, is defined in subsection 4(1) of the EGCFS Act as including 'a fuel (including a fuel blend) prescribed by the regulations that complies with each applicable fuel standard for such fuel'.
Regulation 4 of the Energy Grants (Cleaner Fuels) Scheme Regulations 2004 (EGCFS Regulations) prescribes a 'biodiesel blend' as a cleaner fuel.
The term 'biodiesel blend' is defined in regulation 3 of the EGCFS Regulations:
- biodiesel blend means a fuel:
- for use in an internal combustion engine; and
- that is a blend, in any proportion, of:
- biodiesel; and
- diesel that, if used as automotive diesel, would comply with the applicable fuel standard for automotive diesel.
It is clear from regulations 3 and 4 that there is no statutory requirement stipulating the proportions of diesel and biodiesel in a biodiesel blend.
Date of decision: 5 January 2006
Energy Grants (Cleaner Fuels) Scheme Act 2004
Energy Grants (Cleaner Fuels) Scheme Regulations 2004
Product Grants and Benefits Administration Act 2000
Date of publication: 4 August 2006