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

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au C2013G01981 In force Gazette

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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

Northern Dynamics 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 any of the following parameters:

  • Lead up to 2.10 g/L
  • Methyl tertiary-butyl ether (MTBE) up to 50.4 per cent v/v
  • Oxygen up to 13.9 per cent m/m in petrol not containing ethanol

will be taken to comply with the lead, MTBE and oxygen 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. In this context, higher levels of MTBE and oxygen are not expected to impact significantly on ambient air quality. It is uncertain to what extent lead in the fuel may affect the environment.

The consequences of even a small amount of MTBE contaminating water sources can be significant. It is a standard condition of section 13 approvals for fuel containing MTBE 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 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, enacted by the Parliament of Australia, was introduced to regulate fuel quality standards to protect the environment, public health, and safety. The Act provides a framework for the regulation of fuel quality and the approval of variations to fuel standards. This notice, issued under section 17A of the Act, pertains to the decision made by the Assistant Secretary of the Environment Protection Branch, Department of the Environment, to grant an approval for a variation of the Fuel Standard (Petrol) Determination 2001. The approval allows Northern Dynamics Pty Ltd to supply specialist leaded racing fuel that contains higher levels of lead, MTBE, and oxygen for use in legitimate motor sport activities. The decision was made considering the minimal environmental impact, the controlled use of the fuel, the specific needs of the motor sport community, and the economic benefits that motor sport events bring to regional communities.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities and persons involved in the supply of petrol in Australia, particularly those seeking to supply fuel that does not comply with the standard specifications set out in the Fuel Standard (Petrol) Determination 2001. This Act provides the legislative framework for the approval of variations to the standard petrol specifications to cater to specific needs, such as specialist leaded racing fuels for motor sport activities. The approval granted under the Act is issued to Northern Dynamics Pty Ltd and applies to the supply of petrol containing specified levels of lead, methyl tertiary-butyl ether (MTBE), and oxygen, used exclusively for legitimate motor sport activities until 31 December 2014. This approval is subject to conditions to ensure environmental protection and the safety of occupational and public health. The Act extends its application nationally, with the approval being subject to conditions outlined in the Act and additional conditions specified in the approval instrument. Any further extension or restriction of the application is managed through subordinate instruments as necessary.

Key Provisions

The main operative sections of the notice pertain to the approval granted under section 13 of the Fuel Quality Standards Act 2000. Specifically, section 13 allows for the approval of variations to fuel standards, while section 17A requires the notice of such decisions to be published. In this instance, the approval allows Northern Dynamics Pty Ltd to supply specialist leaded racing fuel that would otherwise not comply with the standard parameters set out in the Fuel Standard (Petrol) Determination 2001. The approval is valid from the date of the notice until 31 December 2014, and applies to fuel supplied by the company and its regulated persons as specified in Annexure 1 of the approval instrument. The Act imposes several obligations on the approval holder, Northern Dynamics Pty Ltd, and its regulated persons. These include ensuring that the specialist leaded racing fuel is only used for legitimate motor sport activities and is supplied in sealed containers of up to 200 litres capacity, except for pre-1986 built racing vehicles which may be dispensed from a bowser. The fuel must not be permitted in activities occurring on fresh water lakes and waterways, and safe handling information must be provided with the fuel. Additionally, the approval is subject to conditions set out in Annexure 2 to the approval instruments and in section 17 of the Act. Breaching any of the conditions set out in the approval, or failing to comply with the obligations imposed by the Act, may result in civil or criminal consequences. The maximum penalties for breaches of the Act include fines of up to $22,000 for individuals and $110,000 for bodies corporate, as well as imprisonment for up to two years for serious offences. Additionally, the approval holder and its regulated persons may be subject to enforcement action by the relevant regulatory agency, including the imposition of further conditions, suspension or revocation of the approval, and legal proceedings.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.