The NSW Government has released its Biofuels Exemptions Guidelines, outlining conditions under which fuel retailers can seek to be excluded from the biofuels law starting 1 January 2017. Article includes a link to the Guidelines, which include conditions such as an inability to secure supply, high costs required for compliance and/or transport, excessive lead times required for compliance, and other commercial and economic grounds.

Key Takeaways:

  • High capital upgrade costs are required for compliance. This consideration can also take account for money spent on compliance costs over the past two years.
  • High recurrent costs associated with the transport of biofuels to the retail site, making it difficult for the retailer to supply fuel to the market at a competitive cost.
  • Lead times on infrastructure works resulting in the business being unable to comply in the near term. The maximum period for this type of exemption is two years.

“It should be noted that businesses not previously covered by the old Biofuels Mandate have been given until 1 April 2017 to comply with the new laws, providing time for a business to consider how they might best comply and whether there are reasonable grounds for their sites to be exempted from the Biofuels mandate.”

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