Notice of Decision to Grant an Approval under the Fuel Quality Standards Act 2000 to Petrochem Carless Limited

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to establish and enforce standards for the quality of fuel supplied in Australia. The Act aims to protect public health and the environment by setting specific limits on the content of harmful substances in fuel. It also provides mechanisms for regulating the supply of fuel to ensure compliance with these standards. The policy objective of the Act is to ensure that fuels supplied in Australia do not exceed the specified parameters for pollutants such as lead, sulphur, and aromatic hydrocarbons. The Act includes provisions for approving variations to fuel standards and regulating the supply of fuel, particularly in contexts such as motor sports where special fuels may be used. In 2013, the Commonwealth of Australia granted an approval under section 13 of the Fuel Quality Standards Act 2000 to Petrochem Carless Limited for the supply of specialist unleaded racing fuel containing specified levels of methyl tertiary-butyl ether (MTBE) and phosphorus. This approval allows for the use of this fuel in legitimate motor sport activities, provided it is supplied under strict conditions designed to prevent misuse and protect the environment. The approval is subject to conditions such as the restriction of supply to licensed motor sport participants, the requirement for sealed containers, and the provision of safety information to users.

Scope and Application

The Fuel Quality Standards Act 2000 governs the regulation of fuel quality within Australia, and this specific approval under Section 13 pertains to specialist unleaded racing fuel containing specified levels of methyl tertiary-butyl ether (MTBE) and phosphorus. This approval is issued to Petrochem Carless Limited and applies to regulated persons such as Vital Equipment Limited, who are required to adhere to the conditions set out in Annexure 2. The approval is limited to the supply of fuel for use in legitimate motor sport activities and is subject to strict conditions, including the requirement for end users to present a valid motor sport organisation licence, restrictions on the quantity and method of fuel supply, and provisions for the safe handling and storage of the fuel. This approval is effective from the date of signing until 31 December 2014, and it is granted in consultation with the Fuel Standards Consultative Committee, ensuring compliance with the overarching objectives of the Act.

Key Provisions

Section 13 of the Fuel Quality Standards Act 2000 grants the Assistant Secretary of the Environment Protection Branch the authority to approve variations in fuel standards for specific purposes. In this case, the approval allows Petrochem Carless Limited to supply specialist unleaded racing fuel that contains up to 14.9 percent v/v of methyl tertiary-butyl ether (MTBE) and up to 0.026 g/L of phosphorus, provided it is used for legitimate motor sport activities. This variation aligns with the MTBE and phosphorus parameters specified in the Fuel Standard (Petrol) Determination 2001. The approval is applicable to the petrol supplied by Petrochem Carless Limited and the regulated persons listed in Annexure 1, and it is in effect from the date of signing until 31 December 2014. The Act imposes several obligations on the approval holder and regulated persons. Firstly, the specialist unleaded racing fuel can only be supplied to individuals who present a valid and current motor sport organisation licence or identification card, or for the purpose of testing or tuning an engine used in legitimate motor sport activities. Secondly, Petrochem Carless Limited is required to submit two reports to the Department of Sustainability, Environment, Water, Population and Communities. The first report, detailing the quantity of fuel supplied from the date of approval until 31 December 2013, must be submitted by the end of March 2014. The second report, covering the period from 1 January 2014 until 31 December 2014, must be submitted by the end of March 2015. Additionally, the fuel must be supplied in sealed containers not exceeding 205 litres in capacity. It must also be accompanied by written information regarding safe handling, including a warning that fuel containing more than 1.0 percent MTBE should not be used in watercraft on fresh water lakes and waterways. The fuel must be dispensed in areas bunded to 110 percent of the capacity of the fuel stored within. The Fuel Quality Standards Act 2000 includes provisions for offences and penalties in the event of non-compliance. Any breach of the conditions specified in the approval or the Act may result in civil or criminal consequences. However, the specific penalties for non-compliance are not detailed in the approval document itself. In general, the Act may provide for penalties such as fines or imprisonment for serious or repeated breaches, as determined by the relevant court. The exact penalties would depend on the nature and severity of the breach, as well as any applicable regulations or guidelines.