Notice of Decision to Grant an Approval under the Fuel Quality Standards Act 2000 to International Motorsport Solutions Pty Ltd

Administered by Department of the Environment and Energy

Legislation au C2013G00030 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

International Motorsport Solutions Pty Ltd (the 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

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 51.2 per cent v/v
  • Di-isopropyl ether (DIPE) up to 7.0 per cent v/v
  • Methyl tertiary-butyl ether (MTBE) up to 15 per cent v/v
  • Tertiary butyl alcohol (TBA) up to 7.0 per cent v/v,

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 sport activities. In this context, higher levels of aromatics, DIPE, MTBE and TBA are not expected to impact significantly on ambient air quality.

The consequences of even a small amount of DIPE, MTBE or TBA contaminating water sources can be significant. It is a standard condition of s13 approvals for fuel containing DIPE, MTBE or TBA above the limit specified in the Petrol Determination that the fuel not be permitted in activities occurring on fresh water lakes and waterways.

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.

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 fuel is supplied in sealed containers of up to 200 litres capacity  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 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.

(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 not to allow the continued and controlled supply of specialist unleaded racing fuels may have an adverse impact on national motor 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 regulate fuel quality in Australia, aiming to protect the environment, occupational and public health, and consumer interests while considering the impact on economic and regional development. The Act empowers the Minister for Sustainability, Environment, Water, Population and Communities to approve variations to fuel standards through the enactment of determinations. This legislative framework was introduced to address the need for a balanced approach to fuel quality regulation that considers both environmental and economic factors. The policy objective of the Act is to ensure that fuel standards are set in a manner that minimises adverse environmental impacts while also supporting economic activities, particularly in regional areas where motor sport events are prevalent. The Act is overseen by the Parliament of Australia, which ensures that the regulatory process is transparent and accountable.

Scope and Application

The Fuel Quality Standards Act 2000, administered under the Commonwealth of Australia, governs the quality standards for fuels sold within the country. This legislation applies to entities involved in the production, importation, supply, and distribution of fuel, ensuring that these activities adhere to the specified fuel quality standards. The Act encompasses a wide range of fuel types, including petrol, and mandates compliance with the established fuel standards to protect the environment, ensure public health and safety, and safeguard consumer interests. The Act's jurisdiction extends across all states and territories within Australia. However, it is important to note that certain exclusions and exemptions may apply, particularly regarding specific fuel types used for niche applications, such as specialist unleaded racing fuel, which can be subject to variations under the Act. The approval process for such variations involves consultations with the Fuel Standards Consultative Committee and considerations of environmental impact, health and safety risks, consumer needs, and economic implications. The Act also allows for the extension or restriction of its application through subordinate instruments, ensuring flexibility in addressing emerging issues and evolving industry practices.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) provides a framework for regulating the quality of fuel supplied in Australia. Section 13 of the Act allows the Minister or a delegate to grant an approval for variations to the fuel standards, which can be seen in the approval for specialist unleaded racing fuel by International Motorsport Solutions Pty Ltd (section 17A). This approval is valid until 31 December 2014 and permits the sale of petrol with specified parameters for aromatics, di-isopropyl ether (DIPE), methyl tertiary-butyl ether (MTBE), and tertiary butyl alcohol (TBA), which otherwise would not comply with the standards set out in the Fuel Standard (Petrol) Determination 2001 (the Petrol Determination). The approval is conditional, as outlined in Annexure 2 and section 17 of the Act. The Act imposes several obligations on the parties involved. International Motorsport Solutions Pty Ltd, as the approval holder, must adhere to the conditions set by the approval and ensure that the fuel supplied complies with the specified parameters and conditions. The company must also provide safe handling information to users of the fuel, which is a standard condition for fuels containing DIPE, MTBE, or TBA. Additionally, the Delegate for the Minister, Andrew McNee, must consider specific factors when deciding whether to grant an approval. These include the protection of the environment (section 15(a)), the protection of occupational and public health and safety (section 15(b)), the interests of consumers (section 15(c)), and the impact on economic and regional development (section 15(d)). Moreover, section 24A of the Act mandates consultation with the Fuel Standards Consultative Committee before granting an approval. Failure to comply with the provisions of the Act or the conditions of the approval may result in civil and criminal penalties. The specific penalties are not detailed in the provided text, but generally, breaches of environmental and safety regulations can lead to significant fines and potential imprisonment. The Act empowers the court to impose penalties for non-compliance, and the severity of these penalties may depend on the nature and extent of the breach. The courts may also order corrective actions or other remedies to address any adverse effects resulting from the breach.

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