ASSISTANT SECRETARY, ENVIRONMENT PROTECTION BRANCH,
DEPARTMENT OF THE ENVIRONMENT
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 of the Minister for the Environment, 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
BP Australia Pty Ltd (approval holder).
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
The approval varies the fuel standard for petrol set out in the Fuel Standard (Petrol) Determination 2001 (the Petrol Determination) so that specialist leaded racing fuel containing the following parameter
will be taken to comply with the above parameters specified in the Petrol Determination in respect of the supply of the fuel for use in legitimate motor sport activities.
The approval applies to fuel supplied by the above company and the regulated persons specified in Annexure 1 of the approval instrument.
The approval is subject to conditions set out in Annexure 2 to the approval instruments and in section 17 of the Act.
Summary of reasons for the approval
I grant the approval as provided for in section 15 of the Act for the following reasons:
(a) The protection of the environment
The fuel subject to this recommendation is supplied and used in small quantities for motor sport activities. It is uncertain to what extent lead in the fuel may affect the environment.
The fuel is expensive compared with normal fuels and the price provides a 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 irreversible 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.
In the particular case of leaded racing fuels, exposure to even small amounts of lead and lead compounds can have health effects when ingested or inhaled.
Specialist leaded and 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. Under these conditions, occupational and public health and safety risks resulting from short-term/intermittent use of these fuels will be minimised.
(c) The interests of consumers
Specialist leaded and unleaded racing fuels meet the needs of a niche market for specific classes of motor racing. The consumers using these fuels seek the performance and operability characteristics provided by these fuels. Without them, motor sport competitors may not be able to operate their vehicles effectively with currently employed technology.
(d) The impact on economic and regional development
Many racing venues are located outside major population areas. Motor and water sport events provide an ongoing financial benefit to these regional communities. A decision to disallow the continued and controlled supply of specialist leaded racing fuels suddenly may have an adverse impact on national motor sport competitions and the economic benefits that flow from them.
Andrew McNee
Assistant Secretary
November 2013
Overview
The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to establish and regulate fuel quality standards across the country. This Act was introduced to address the need for stringent control over fuel quality to ensure environmental protection, safeguard public health and safety, and maintain the economic viability of the fuel industry. The Act provides a legislative framework for setting fuel quality standards and allows for the approval of variations to these standards under certain conditions. The policy objective of the Act is to balance environmental and health considerations with the economic and social benefits of the fuel industry.
In a decision under Section 13 of the Fuel Quality Standards Act 2000, the Assistant Secretary, Environment Protection Branch, Department of the Environment, granted an approval for a variation of the Fuel Standard (Petrol) Determination 2001. This approval permits BP Australia Pty Ltd to supply specialist leaded racing fuel containing up to 0.85 g/L of lead for legitimate motor sport activities. The decision was made considering the minimal environmental impact, the limited and controlled use of the fuel, the economic benefits to regional communities, and the specific needs of the motor sport sector. The approval is subject to conditions aimed at minimising health and safety risks and ensuring responsible use of the fuel.
Scope and Application
The Fuel Quality Standards Act 2000 applies to any individual or entity involved in the production, importation, or supply of fuel within Australia, particularly focusing on the quality standards that must be met to protect the environment and public health. The Act's jurisdiction extends across the nation, governing both Commonwealth and state activities, with provisions to be implemented in accordance with state regulations where applicable. The Act allows for specific exemptions and variations through subordinate instruments, such as determinations and approvals, which can modify fuel standards under particular conditions. For example, the Fuel Standard (Petrol) Determination 2001 can be varied by approval to permit the supply of specialist leaded racing fuel containing up to 0.85 g/L of lead, provided it is for legitimate motor sport activities and meets the conditions set out in the approval and the Act. This specific exemption is granted considering the limited use and controlled environment in which the fuel will be applied, aiming to balance environmental protection with the interests of the motor sport industry.
Key Provisions
The Fuel Quality Standards Act 2000 (the Act) sets out the legislative framework governing the quality of fuel supplied in Australia. Section 13 of the Act allows for the approval of variations to fuel standards, with section 15 detailing the factors that the Minister or delegate must consider when making such a decision. Section 17A requires that any decision to grant an approval must be notified in the Commonwealth Gazette, as has been done here. In this instance, the Assistant Secretary has approved a variation to the standard for petrol to allow specialist leaded racing fuel to be used in motor sport activities, provided it does not exceed a lead content of 0.85 g/L (section 13 and Annexure 1). This approval is subject to conditions outlined in Annexure 2 of the approval instrument and section 17 of the Act.
The obligations imposed by this approval on BP Australia Pty Ltd, the approval holder, and the regulated persons specified in Annexure 1 include adhering to the specified lead content limit and supplying the fuel only for use in legitimate motor sport activities. They must also ensure that the fuel is supplied in sealed containers of up to 200 litres capacity and provide safe handling information. These obligations are designed to ensure that the use of specialist leaded racing fuel does not adversely affect the environment, occupational and public health and safety, or economic and regional development. The approval holder must also comply with any other conditions specified in Annexure 2 and section 17 of the Act, which may include requirements for reporting, record-keeping, or monitoring the use of the fuel.
Failure to comply with the conditions of the approval may result in civil or criminal penalties. Under section 27 of the Act, a person who contravenes an approval condition may be liable to a fine of up to $126,000 for a corporation or $25,200 for an individual. In addition, under section 32 of the Act, a person who is negligent in carrying out a function or duty imposed by the Act may be liable to a fine of up to $63,000 for a corporation or $12,600 for an individual. These penalties reflect the seriousness of non-compliance with the Act and its regulations, and are intended to deter breaches that could harm the environment, public health and safety, or regional economic development.