Notice of decision to vary an approval granted under the Fuel Quality Standards Act 2000 - BP Australia Pty Ltd

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au C2017G00065 In force Gazette

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FIRST ASSISTANT SECRETARY, ENVIRONMENT STANDARDS DIVISION

DEPARTMENT OF THE ENVIRONMENT AND ENERGY

NOTICE UNDER SECTION 17 OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING A DECISION TO VARY AN APPROVAL GRANTED UNDER SECTION 13 OF THAT ACT

 

I, Matt Cahill, First Assistant Secretary, Environment Standards Division, delegate of the Minister for the Environment and Energy, provide the following information concerning my decision to vary an approval under section 13 of the Fuel Quality Standards Act 2000.

Name of approval holder

BP Australia Pty Ltd

Details of the variation

On 5 December 2014 an approval was granted to BP Australia Pty Ltd to vary the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist leaded racing fuel as specified in the approval.

Pursuant to section 17D of the Act:

  1. The period of operation of the approval has been extended until 30 June 2017.
  2. The following parameter listed in the approval has been amended so that:
  • lead up to 0.56 g/L

will be taken to comply with the relevant parameter specified in the Fuel Standard (Petrol) Determination 2001 in respect of the supply of the fuel for use in legitimate motor sport activities.

Period of operation

The variation comes into force on the date of signing and remains in force until 30 June 2017.

Summary of reasons for the variation

Having consulted with the Fuel Standards Consultative Committee as required by section 17D(3) of the Act, I grant the variation as provided for in section 15 of the Act for the following reasons:

a)      The protection of the environment

 

The Minister for the Environment and Energy is currently considering the future use of lead in racing fuel.

The fuel subject to this recommendation is supplied and used in small quantities for motor sport activities.

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 standard that the fuel not be permitted in activities occurring on freshwater lakes and waterways.

The fuel is expensive compared with normal fuels and the price provides a disincentive for any waste, misuse or spillage.

With the exception of leaded racing fuel, which the Minister is currently considering phasing-out, it is 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.

These considerations are not altered by a six month extension of the original approval.

b)      The protection of occupational and public health and safety

Exposure to certain substances in petrol and vehicle exhaust 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. All the lead in the fuel is emitted in the exhaust.

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.

These considerations are not altered by a six month extension of the original approval.

c)      The interests of consumers

 

Specialist leaded 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.

These considerations are not altered by a six month extension of the original approval.

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.

These considerations are not altered by a six month extension of the original approval.

 

The variation is granted subject to the conditions specified in section 17 of the Act.

 

 

 

 

 

 

Matt Cahill 

First Assistant Secretary, Environment Standards Division 

19 December 2016

 

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel supplied in Australia, with a view to protecting the environment, public health, and the interests of consumers. The Act provides for the establishment of fuel quality standards and the approval of variations to these standards by the Minister for the Environment and Energy. The policy objective of the Act is to ensure that fuel supplied in Australia meets certain quality standards that protect the environment and public health, while also taking into account the interests of consumers and the economic benefits of the fuel industry. The Act was introduced to address the need for a national framework for regulating fuel quality in Australia, and to provide for the development and implementation of fuel quality standards that are consistent with international best practice. The Act was enacted by the Parliament of Australia and is administered by the Department of the Environment and Energy.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities that are involved in the production, supply, or use of fuel within Australia, with a specific focus on the quality and environmental impact of the fuel. In this instance, the Act applies to BP Australia Pty Ltd, which has been granted an approval to vary the Fuel Standard (Petrol) Determination 2001 to allow for the supply of specialist leaded racing fuel. This approval is granted under section 13 of the Act and is subject to the conditions outlined in section 17, which includes the protection of the environment, the safety of occupational and public health, the interests of consumers, and the impact on economic and regional development. The geographic reach of the Act is national, covering all states and territories within Australia. The variation granted to BP Australia Pty Ltd extends the period of operation of the approval until 30 June 2027 and amends the lead parameter to allow up to 0.56 g/L in the fuel for use in legitimate motor sport activities. The Act also allows for the extension or restriction of application through subordinate instruments, which may include regulations or guidelines that provide further detail on the implementation and enforcement of the Act.

Key Provisions

The Fuel Quality Standards Act 2000 provides the legal framework for regulating the quality of fuel sold in Australia. Section 13 of the Act allows for the approval of variations to the fuel standards to be made in specific circumstances. In this case, the First Assistant Secretary, Environment Standards Division, has granted a variation to an existing approval held by BP Australia Pty Ltd (section 17). This variation allows the supply of specialist leaded racing fuel to continue until 30 June 2017, with a specific limit on the amount of lead allowed in the fuel (section 17D). The variation also includes conditions that must be adhered to by the approval holder (section 17). The obligations imposed on the parties governed by the Act include ensuring that any fuel supplied under the approval complies with the specified conditions. BP Australia Pty Ltd is required to supply the leaded racing fuel in sealed containers of up to 200 litres and to provide safe handling information to users. The approval holder must also ensure that the fuel is not used in activities on freshwater lakes and waterways if it contains MTBE above the specified limit. These obligations are designed to protect the environment, occupational and public health and safety, and to meet the needs of consumers in a niche market. Failure to comply with the conditions of the approval or the requirements of the Act may result in civil or criminal penalties. Under section 27 of the Act, an offence is constituted if a person supplies fuel that does not comply with the relevant standards or the terms of an approval. The maximum penalty for such an offence is a fine of up to $55,000 for an individual and $275,000 for a body corporate. Additionally, under section 28, a person who is negligent in the performance of a function or duty under the Act may be liable for a penalty of up to $11,000 for an individual and $55,000 for a body corporate. These penalties are intended to deter non-compliance and to ensure that the objectives of the Act are achieved.

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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.