Notice of Decision to Grant an Approval under the Fuel Quality Standards Act 2000 to ACB Group Pty Ltd

Administered by Department of the Environment and Energy

Legislation au C2013G00032 In force Gazette

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NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION UNDER SECTION 13 OF THAT ACT FOR AN APPROVAL FOR A VARIATION OF THE FUEL STANDARD (PETROL) DETERMINATION 2001

I, Andrew McNee, Assistant Secretary, Environment Protection Branch, Delegate for the Minister for Sustainability, Environment, Water, Population and Communities provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).

Name of approval holder

ACB Group Pty Ltd.

Period of operation

The period of operation of the approval is from the date of the approval until 31 December 2014.

Details of the approval

This approval varies the fuel standard for petrol set out in the Fuel Standard (Petrol) Determination 2001 (the Petrol Determination) so that specialist unleaded racing fuel, containing any or all of the following parameters:

  • Aromatics up to 78 per cent v/v
  • Ethanol up to 20 per cent v/v
  • Oxygen up to 7.0 per cent m/m in petrol containing ethanol,

will be taken to comply with the parameters specified in the Petrol Determination.

The approval is subject to conditions set out in Annexure 2 to the approval instrument and in section 17 of the Act.

Background

Section 15 of the Act provides that I must have regard to the following when deciding whether or not to grant an approval:

(a) the protection of the environment

(b) the protection of occupational and public health and safety

(c) the interests of consumers, and

(d) the impact on economic and regional development.

I may also have regard to any other matters I consider relevant.

Section 24A of the Act provides that I must consult, and have regard to the recommendations of, the Fuel Standards Consultative Committee (the Committee) before granting an approval under section 13. Before signing the instrument granting the approval, the Committee had been consulted and I have had regard to the recommendations it made in December 2012.

 

Findings on material questions of fact

(a) The protection of the environment

The fuel subject to this recommendation is supplied and used in small quantities for motor or water sport activities. In this context, higher levels of aromatics, ethanol and oxygen are not expected to impact significantly on ambient air quality.

The fuel is expensive compared with normal fuels and the price provides a strong disincentive for any waste, misuse or spillage. It is therefore not expected that permitting the supply of the fuels covered by this approval for motor sport activities will have an adverse effect on the environment.

(b) The protection of occupational and public health and safety

Exposure to certain substances in petrol can be toxic. The risks associated with exposure to racing fuels may be higher than for petrol because of the additional substances contained in them. A variety of negative health effects can occur, depending upon the substance, the level and duration of exposure. At venues that use racing fuels, exposure may extend to drivers, team members, race officials, spectators and the immediate environment.

Specialist unleaded racing fuels are supplied in sealed containers of up to 200 litres capacity (except for use in pre-1986 built racing vehicles which may be dispensed from a bowser) and are used in small quantities, primarily in off-road activities, and in widely dispersed locations. Safe handling information will be provided with the fuel. The volume of fuel to be supplied under an approval is limited and will be used by a small number of competitors. Consequently, under these conditions, occupational and public health and safety risks will be  minimised.

 (c) The interests of consumers

Specialist unleaded racing fuels meet the needs of a niche market for specific classes of motor or water sport racing.  The consumers using these fuels seek the performance and operability characteristics provided by these fuels. Without them, motor or water sport competitors may not be able to operate their vehicles effectively.

(d) The impact on economic and regional development

Many racing venues are located outside major population areas. Motor or water sport events provide an ongoing financial benefit to these regional communities. A decision not to allow the continued and controlled supply of specialist unleaded racing fuels may have an adverse impact on national motor or water sport competitions and the economic benefits that flow from them.

Summary of reasons for the approval

1. Specialist unleaded racing fuels are used in small quantities in motor or water sport activities. They are supplied to regulated users in small quantities. The fuel is expensive compared with normal fuels available to the public and the price provides a strong disincentive for any waste, misuse or spillage.

2.              The  small quantities of fuel supplied, the storage of fuel in sealed containers and the adoption of safe handling procedures means the use of the fuel is not expected to present a significant occupational and public health and safety risk.

3. Motor or water sport events provide an ongoing financial benefit to regional communities and it is not expected that use of small volumes of fuels which are the subject of this approval will have a significant effect on the environment.

4. This approval would be consistent with previous decisions approving supply of specialist unleaded racing fuel by retailers supplying these fuels to motor or water sport competitors.

Andrew McNee………….………...........................................................

Delegate of the Minister for Sustainability, Environment, Water, Population and Communities

20 December 2012

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure the quality of fuel sold in Australia, with a focus on protecting the environment, occupational and public health, consumer interests, and economic and regional development. This legislation was introduced to address the need for regulation of fuel quality, ensuring that fuels available in the market meet certain standards that safeguard environmental and public health considerations. The Act is administered by the Parliament of Australia and aims to balance the interests of various stakeholders, including the environment, health, consumers, and the economy. The policy objective of the Act is to provide a framework for the approval of fuel standards, taking into account the potential environmental, health, and economic impacts of fuel quality. In the context of specialist unleaded racing fuels, the Fuel Quality Standards Act 2000 allows for the approval of variations to the standard fuel quality parameters for specific purposes, such as motor or water sport activities. This is achieved through the consultation process with the Fuel Standards Consultative Committee and the consideration of factors such as environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. The approval granted to ACB Group Pty Ltd for the supply of specialist unleaded racing fuels for motor or water sport activities demonstrates the Act's ability to accommodate niche markets while ensuring the protection of key interests.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the regulation of fuel quality in Australia, with a focus on minimising environmental impact, protecting health and safety, and supporting economic and regional development. This Act grants the Minister for Sustainability, Environment, Water, Population and Communities the authority to approve variations in fuel standards, such as those for specialist unleaded racing fuel, through the issuance of approvals. The approval granted to ACB Group Pty Ltd under this Act allows for a variation in the petrol standard to accommodate the use of specialist unleaded racing fuel, which contains higher levels of aromatics, ethanol, and oxygen, for use in motor and water sports. This approval is subject to specific conditions and operates until 31 December 2014. The decision to grant this approval was based on the minimal environmental impact, the limited and controlled use of the fuel, the provision of safe handling information, and the economic benefits to regional communities from motor and water sport events. The approval process also involved consultation with the Fuel Standards Consultative Committee, ensuring that the decision aligns with broader health, safety, and environmental considerations.

Key Provisions

The main operative sections of the Fuel Quality Standards Act 2000 that concern the approval granted in this notice include section 13, which allows the Delegate to approve variations to the fuel standard for petrol, and section 17A, which requires the Delegate to publish details of such decisions in the Commonwealth Gazette. Section 24A of the Act mandates that the Delegate consults with the Fuel Standards Consultative Committee before making such approvals. This approval varies the fuel standard for petrol, specifically allowing for specialist unleaded racing fuel that contains certain levels of aromatics, ethanol, and oxygen to be considered compliant with the existing petrol standards (section 15). The obligations imposed on the parties by this Act include ensuring that the specialist unleaded racing fuel is supplied and used under strict conditions to minimise any potential harm to the environment, occupational and public health, and safety. The approval holder, ACB Group Pty Ltd, must adhere to the conditions outlined in the approval and Annexure 2, which includes provisions on safe handling and storage of the fuel. Additionally, the approval holder must ensure that the fuel is supplied in sealed containers and primarily used for motor or water sport activities in regulated settings. Breaches of the conditions set out in the approval or the Act may lead to various consequences. While the notice does not explicitly detail the penalties for non-compliance, under the Act, offences can attract significant fines. For instance, section 34 of the Act provides for penalties for breaches, including fines of up to $66,000 for corporations and $13,200 for individuals. Furthermore, persistent non-compliance could lead to more severe penalties, including potential criminal charges if the breach involves serious environmental or health risks. The Act also allows for the revocation of the approval if the holder fails to comply with its conditions, which could result in the cessation of the fuel supply operations.

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