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

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

Legislation au C2013G01980 In force Gazette

Legislation content

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

VP Racing Fuels 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 1.85 g/L
  • Methyl tertiary-butyl ether (MTBE) up to 55 per cent v/v
  • Olefins up to 60 per cent v/v
  • Oxygen up to 14.57 per cent m/m in petrol not containing ethanol

14.57 per cent m/m in petrol containing ethanol

  • Sulfur up to 375 mg/kg

will be taken to comply with the lead, MTBE, olefin, oxygen and sulfur 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 was enacted to regulate the quality of fuel sold in Australia, with a particular focus on minimising environmental damage and protecting public health and safety. The Act provides a legislative framework for the establishment and enforcement of fuel quality standards, including the ability to approve variations to these standards under specific circumstances. The Australian Parliament enacted this Act to address issues such as the environmental impact of fuel contaminants and the health risks posed by exposure to certain substances in fuel. The policy objective of the Act is to ensure that fuel sold in Australia meets certain quality standards that balance environmental protection, public health and safety, and the needs of consumers and the economy. In this context, the Act allows for the granting of approvals for variations to fuel standards where it is demonstrated that such variations will not have an irreversible effect on the environment or pose unacceptable risks to health and safety.

Scope and Application

The Fuel Quality Standards Act 2000 applies to the regulation of fuel quality standards in Australia and allows for variations to these standards under specific conditions. The Act primarily applies to the entities that supply fuel within Australia, particularly those involved in the supply of petrol for motor sport activities. This approval granted by the Assistant Secretary of the Environment Protection Branch, Department of the Environment, is directed towards VP Racing Fuels Pty Ltd, which is authorised to supply specialist leaded racing fuel under certain conditions until 31 December 2014. The approval specifically pertains to petrol containing parameters such as lead, MTBE, olefins, oxygen, and sulfur at levels exceeding those specified in the Fuel Standard (Petrol) Determination 2001, provided the fuel is used for legitimate motor sport activities. The geographic scope of the Act is national, with the approval extending across Australia. Any exclusions or exemptions from the Act are detailed within the approval conditions and the Act itself, ensuring that the supply of these specialist fuels does not adversely affect the environment or public health.

Key Provisions

The primary sections of the notice (Gazette, C2013G01980) concern the decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act) for a variation of the Fuel Standard (Petrol) Determination 2001. This approval, granted by Andrew McNee, the Assistant Secretary of the Environment Protection Branch and a delegate of the Minister for the Environment, allows VP Racing Fuels Pty Ltd to supply specialist leaded racing fuel that meets certain parameters (s 13, 15). The approval is valid from the date of the approval until 31 December 2014 (s 17A). The parameters for the fuel include specific levels of lead, methyl tertiary-butyl ether (MTBE), olefins, oxygen, and sulfur, which must be adhered to for the fuel to be considered compliant with the petrol standard (s 13). The obligations imposed by the Act on the parties governed by this approval include adhering to the specified fuel parameters and conditions outlined in the approval instrument. VP Racing Fuels Pty Ltd, as the approval holder, and the regulated persons listed in Annexure 1 of the approval instrument must comply with these conditions (s 13, 17). The conditions are designed to ensure that the use of the fuel is limited to legitimate motor sport activities and that any potential risks to the environment, occupational and public health, and safety are minimised. This includes providing safe handling information and ensuring that the fuel is used in sealed containers of up to 200 litres capacity, except for pre-1986 built racing vehicles that may be dispensed from a bowser. The Act also outlines potential offences, penalties, and consequences for breach. While the notice does not explicitly state the penalties for non-compliance, under the general provisions of the Act, breaches may result in civil or criminal penalties. Civil penalties could include fines, while criminal penalties may include imprisonment, reflecting the severity of the breach and its impact on the environment and public health. The maximum penalties for such offences are determined by the specific provisions of the Act and any relevant subordinate legislation. Compliance with the conditions and parameters set out in the approval is crucial to avoid any legal repercussions.

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