Notice of decision to vary an approval granted under the Fuel Quality Standards Act 2000 - ERC Racing Fuels Pty Ltd

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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

ERC Racing Fuels Pty Ltd

Details of the variation

On 23 December 2015 an approval was granted to ERC Racing Fuels 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, the period of operation of the approval has been extended until 30 June 2017.

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 by the Parliament of Australia to regulate the quality of fuel and its impact on the environment, health, and safety of the public and occupational groups. The Act addresses the problem of ensuring that fuel sold in Australia meets certain quality standards, with a particular emphasis on minimising the environmental and health impacts of fuel additives. The Act provides a framework for the approval and regulation of fuel quality, including the ability to set standards and approve variations to those standards. The policy objective of the Act is to protect the environment and the health and safety of the public and workers while also supporting economic and regional development through the regulation of fuel quality. The Act empowers the Minister for the Environment and Energy to make determinations and approvals relating to fuel quality, including the ability to vary those approvals as necessary to respond to changing circumstances or new information.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the production, distribution, and sale of fuel within Australia, particularly those seeking to vary fuel standards as specified in the Act. The Act is a Commonwealth statute, thus it has a national jurisdictional reach, governing fuel quality standards across the entirety of Australia. This particular Act applies to ERC Racing Fuels Pty Ltd in this instance, which has been granted an approval to vary the Fuel Standard (Petrol) Determination 2001 to supply specialist leaded racing fuel. The Act allows for certain exclusions and exemptions, though the specific conditions and limitations of these are detailed in the subordinate instruments. The Act's application may also be extended or restricted through such subordinate instruments, which provide the means to adapt to changing circumstances or requirements in the fuel industry. The decision to vary an approval granted under the Act is subject to consultation with relevant committees, such as the Fuel Standards Consultative Committee, and takes into account a range of factors including environmental protection, occupational and public health and safety, consumer interests, and the impact on economic and regional development.

Key Provisions

The notice under section 17 of the Fuel Quality Standards Act 2000 details a decision to vary an approval granted to ERC Racing Fuels Pty Ltd, concerning the supply of specialist leaded racing fuel. This approval, originally granted on 23 December 2015, has been extended to operate until 30 June 2017 under section 17D of the Act. The extension aims to accommodate the current review of lead use in racing fuel by the Minister for the Environment and Energy. The obligations imposed by this notice on ERC Racing Fuels Pty Ltd include adhering to the conditions set out in section 17 of the Act. The company must ensure that the specialist leaded racing fuel is supplied in sealed containers of up to 200 litres and used primarily in off-road activities. The company must also provide safe handling information with the fuel to mitigate potential health and safety risks. Additionally, the fuel must not be used in activities occurring on freshwater lakes and waterways. The extension of the approval is subject to these conditions being met, ensuring that the environmental, health, and economic considerations are adequately addressed. Failure to comply with the conditions of the approval or the provisions of the Act could result in significant consequences. The Act includes provisions for both civil and criminal penalties for non-compliance. For example, under section 15 of the Act, the Minister may impose fines for breaches, with maximum penalties specified in the Act. Additionally, if the non-compliance is deemed to be a serious breach, it could result in criminal charges, leading to substantial fines and potential imprisonment. The specific penalties are outlined in the Act and depend on the severity and nature of the breach.

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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.