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

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au C2019G00365 In force Gazette

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A/G ASSISTANT SECRETARY, ENERGY SECURITY BRANCH

DEPARTMENT OF THE ENVIRONMENT AND ENERGY

NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING AN APPROVAL TO VARY

THE FUEL STANDARD (PETROL) DETERMINATION 2001,

THE FUEL QUALITY STANDARDS (PETROL) DETERMINATION 2019,
THE FUEL STANDARD (ETHANOL E85) DETERMINATION 2012
AND THE FUEL QUALITY STANDARDS (ETHANOL E85) DETERMINATION 2019
GRANTED UNDER SECTION 13 OF THAT ACT

 

I, Dwayne Purdy, A/g Assistant Secretary, Energy Security 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.

Name of approval holder

VP Racing Fuels Pty Ltd

Period of operation

The approval comes into force on the date below and remains in force until 30 June 2022.  

Details of the approval

The approval varies the fuel standard for petrol set out in the Fuel Standard (Petrol) Determination 2001, the fuel standard set out in the Fuel Quality Standards (Petrol) Determination 2019 (the Petrol Determinations), the fuel standard for ethanol E85 set out in the Fuel Standard (Ethanol E85) Determination 2012 and the fuel standard set out for ethanol E85 set out in the Fuel Quality Standards (Ethanol E85) Determination 2019 (the Ethanol E85 Determinations) so that:

petrol containing:

  • a maximum olefins content of up to 55 per cent v/v
  • a maximum methyl tertiary butyl ether (MTBE) content of up to 55 per cent v/v
  • a maximum oxygen content of up to 9.50 per cent m/m and

ethanol E85 containing:

  • a maximum methyl tertiary butyl ether (MTBE) content of up to 20 per cent v/v

are taken to comply with the relevant parameters specified in the Petrol Determinations and the Ethanol E85 Determinations, respectively, in respect of the supply of specialist racing fuel for use in legitimate motor sport activities on land until 30 June 2022.

The approval applies to petrol supplied by the approval holder and the regulated persons specified in Annexure 1 of this approval.

The approval is granted subject to the conditions specified in section 17 of the Act and the conditions specified in Annexure 2 of the approval.

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the approval as provided for in section 15 of the Act for the following reasons:

a)        The protection of the environment

As the fuels subject to this approval are supplied and used in small quantities for legitimate motor sport activities, the higher levels of ethanol, olefins and MTBE 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 therefore a standard condition of approving a variation of the Petrol and Ethanol E85 Determinations in relation to fuel containing MTBE above the limit specified in those determinations, that the fuels are not used on freshwater lakes or waterways. It is a condition of approval that the containers are labelled stating that the fuels must not be used near fresh water, and that any spills are to be contained appropriately and disposed of to protect groundwater.

The fuel is expensive relative to normal fuels, giving a disincentive for waste, misuse or spillage.

It is therefore not expected that permitting the supply of the fuels covered by this approval for legitimate motor sport activities would 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. 

Specialist racing fuels are supplied in sealed containers of up to 200 litres capacity and are used in small quantities, predominantly 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. 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 racing fuels meet the needs of a niche market for specific categories 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 available technology. VP Racing Fuels’ application makes available to consumers a range of unleaded fuels for use in motorcycle, circuit, and drag racing. 

d)       The impact on economic and regional development

Many racing venues are located outside major population areas. Motor and water sports events provide an ongoing financial benefit to these regional communities. A decision to disallow the continued and controlled supply of specialist racing fuels would have an adverse effect on national and regional motor sport competitions and the economic benefits that flow from them.

 

 

 

Dwayne Purdy

A/g Assistant Secretary, Energy Security Branch

17 April 2019

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel sold in Australia, ensuring it meets specific standards to protect the environment, public health, and safety. This legislation was introduced to address the need for a comprehensive regulatory framework governing fuel quality across the nation, ensuring that fuel sold in Australia adheres to uniform quality standards. The Act was enacted by the Australian Parliament and aims to provide for the regulation of fuel quality standards in Australia, ensuring that fuel sold in the country meets specified quality standards designed to protect the environment, public health, and safety. The Act empowers the Minister for the Environment to make determinations about fuel quality standards, including variations to those standards, after consulting with relevant stakeholders. This allows for the flexible management of fuel quality in response to emerging issues or technological advancements in the fuel industry.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of fuel within the Commonwealth of Australia, specifically addressing the quality and standards of fuel supplied across the nation. The Act's provisions pertain to the regulation of petrol and ethanol E85 fuel standards, ensuring that these fuels meet specific quality benchmarks that protect the environment, safeguard occupational and public health, and cater to consumer needs. In this context, the approval granted to VP Racing Fuels Pty Ltd under the Act allows for variations in the petrol and ethanol E85 standards for the supply of specialist racing fuel used in legitimate motor sport activities until 30 June 2022. The approval is limited to the supply of petrol containing specific levels of olefins, MTBE, and oxygen, as well as ethanol E85 containing certain MTBE levels, for use in motor sports. The approval is subject to conditions aimed at minimising environmental impact, protecting health and safety, and ensuring responsible use, such as prohibiting the use of these fuels near freshwater sources. The Act's application extends to all fuel supplies within the Commonwealth, but variations like this one are granted to accommodate specific industry needs, provided they meet the overarching objectives of the Act.

Key Provisions

The main operative sections of the notice (section 17A of the Fuel Quality Standards Act 2000) concern the approval granted to vary certain fuel standards to allow for the supply of specialist racing fuels. Specifically, section 13 of the Act empowers the delegate to approve a variation to the fuel standards for petrol and ethanol E85, as detailed in the Fuel Standard (Petrol) Determination 2001, the Fuel Quality Standards (Petrol) Determination 2019, the Fuel Standard (Ethanol E85) Determination 2012, and the Fuel Quality Standards (Ethanol E85) Determination 2019. This approval permits petrol containing higher levels of olefins and MTBE, and ethanol E85 containing higher levels of MTBE, to be used in legitimate motor sport activities until 30 June 2022. The approval holder, VP Racing Fuels Pty Ltd, must adhere to the conditions specified in section 17 of the Act and those detailed in Annexure 2 of the approval. The obligations imposed on VP Racing Fuels Pty Ltd and any regulated persons include ensuring that the specialist racing fuels are supplied in sealed containers of up to 200 litres, primarily for use in off-road activities. The fuels must not be used near freshwater lakes or waterways, and any spills must be contained and disposed of appropriately to protect groundwater. Additionally, the containers must be labelled with warnings against use near fresh water. Safe handling information must be provided with the fuel, and the volume supplied must be limited to minimise occupational and public health and safety risks. The approval is subject to consultation with the Fuel Standards Consultative Committee, as required by section 24A of the Act. Breach of the conditions of the approval may result in civil and criminal consequences. Under section 18 of the Act, a person who contravenes the conditions of an approval can be subject to a pecuniary penalty of up to $66,000 for a corporation and $6,600 for an individual. Additionally, section 19 of the Act allows for criminal penalties, including fines of up to $660,000 for a corporation and $66,000 for an individual, and imprisonment for up to five years. These penalties serve as a deterrent against non-compliance and ensure that the approved variations to the fuel standards do not pose undue risks to the environment, health, and safety.

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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.