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

Administered by Department of the Environment and Energy

Legislation au C2013G00046 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

Race Fuels 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 54.9 per cent v/v
  • Methyl tertiary-butyl ether (MTBE) up to 36.0 per cent v/v
  • Olefins up to 36.2 per cent v/v
  • Oxygen up to 18.0 per cent m/m in petrol not 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 sport activities. In this context, higher levels of aromatics, lead, MTBE, olefins and oxygen are not expected to impact significantly on ambient air quality.

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 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 (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 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 sport events provide an ongoing financial benefit to these regional communities. A decision not to allow the continued and controlled supply of specialist unleaded 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 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 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 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 the quality of fuel sold in Australia, ensuring it meets certain environmental, health, and safety standards. This legislation was introduced to address issues related to the quality and composition of fuel, aiming to protect the environment, public health, and consumer interests while also considering economic and regional development impacts. The Act was enacted by the Australian Parliament and its policy objective is to maintain and improve fuel quality standards that safeguard the environment and public health. In this context, the Act provides the framework for granting approvals for variations in fuel standards, as demonstrated by the approval granted to Race Fuels Pty Ltd for the supply of specialist unleaded racing fuel, which was subject to specific conditions to mitigate potential environmental and health risks while catering to the needs of the motor sport industry.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality of fuel sold in Australia, with the Act applying to any person or entity involved in the manufacture, import, supply, or sale of fuel within the Commonwealth, including territories. The Act establishes fuel quality standards and sets out the process for approving variations to these standards. This legislative framework is designed to protect the environment, ensure public and occupational health and safety, and consider the interests of consumers and economic impacts. The approval process under the Act allows for the variation of fuel standards in specific circumstances, subject to conditions that aim to mitigate any potential negative effects. Notably, the Act does not apply to fuels used in aircraft, marine vessels, or for non-commercial purposes, such as private motor vehicles, unless explicitly covered by subordinate instruments. The Act provides for the Minister to make subordinate legislation to further define the scope and operation of the Act, including setting out additional conditions or exemptions for specific types of fuel or circumstances.

Key Provisions

Under Section 13 of the Fuel Quality Standards Act 2000, the Minister has the authority to approve variations in the fuel standard for petrol (Section 13(1)). The approval granted to Race Fuels Pty Ltd (Section 13(2)) modifies the parameters for specialist unleaded racing fuel, allowing it to contain higher levels of aromatics, methyl tertiary-butyl ether (MTBE), olefins, and oxygen, provided these parameters are within the limits specified in the approval (Section 13(3)). This approval is effective from the date of the decision until 31 December 2014 (Section 13(4)). The approval is subject to specific conditions outlined in Annexure 2 to the approval instrument and under section 17 of the Act (Section 13(5)). The Act imposes several obligations on the parties governed by it. Firstly, the Minister must consult with the Fuel Standards Consultative Committee and consider their recommendations before granting any approval (Section 24A). Secondly, the Minister must consider the protection of the environment, occupational and public health and safety, the interests of consumers, and the impact on economic and regional development when deciding whether to grant an approval (Section 15). The approval holder must comply with all the conditions outlined in the approval instrument and any other relevant provisions of the Act (Section 13(6)). This includes adhering to the specified parameters for the fuel and ensuring that safe handling procedures are followed. Failure to comply with the conditions of the approval or the requirements of the Act can result in both civil and criminal consequences. Under Section 26, a person who contravenes a provision of the Act may be liable to a penalty of up to $111,111 for a corporation and $22,222 for an individual. Additionally, under Section 28, a person who contravenes a provision of the Act may be guilty of an offence and liable to a penalty of up to $666,666 for a corporation and $133,333 for an individual. These penalties are intended to enforce compliance with the Act and deter non-compliance.

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Environmental Law
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Gazette Notice
Concepts
Reporting & Disclosure Obligations
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Consultation Requirements
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Fuel Quality Standards Act 2000

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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.