Notice of decision to vary an approval granted under the Fuel Quality Standards Act 2000 - Netaway Pty Ltd (10 December 2014)

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au C2017G00069 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

Netaway Pty Ltd

Details of the variation

On 10 December 2015 an approval was granted to Netaway 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 to regulate the quality of fuel supplied in Australia, aiming to protect the environment, occupational and public health, and safety, while also considering consumer interests and regional economic impacts. This Act was introduced to address the need for stringent quality standards for fuel to mitigate environmental damage, health risks, and to ensure that fuel supplied meets certain performance standards, particularly for niche markets such as specialist racing fuels. The Act is administered by the Parliament of Australia, with the primary policy objective being to safeguard the environment and public health through the regulation of fuel quality. In the context of specialist racing fuels, the Act allows for specific approvals that balance the unique needs of the motor sport industry with the imperative to protect health and the environment.

Scope and Application

The Fuel Quality Standards Act 2000, as varied under section 17, applies to Netaway Pty Ltd, an approval holder authorised to supply specialist leaded racing fuel under the Fuel Standard (Petrol) Determination 2001. The Act primarily governs the quality standards for fuels supplied in Australia, ensuring they meet certain environmental, health, and safety criteria. The geographic reach of the Act is national, applying across all states and territories of Australia. However, the specific variation in this instance concerns the supply of specialist leaded racing fuel, which is used in small quantities primarily for motor sport activities. The Act allows for exemptions and variations to ensure that the supply of certain fuels can continue under controlled conditions where it is deemed not to have an irreversible effect on the environment or public health. This particular variation does not introduce new exclusions but reaffirms the existing conditions under which the approval operates, including the prohibition of use in freshwater lakes and waterways and the requirement for safe handling information to be provided with the fuel. The Act may be further extended or restricted through subordinate instruments, such as determinations or approvals, which can specify additional conditions or criteria for the supply of particular fuels.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) governs the quality and composition of fuel sold in Australia, with specific sections detailing how approvals can be granted, varied, and revoked. Section 13 of the Act provides for the approval of variations to the standard quality of fuel, allowing for certain deviations to cater for specific needs, such as specialist leaded racing fuel. Section 17 of the Act deals with the variation of approvals, requiring the Minister to consult with relevant parties and provide a notice of the variation. The decision to vary an approval, as outlined in the gazette, involves extending the period of an existing approval granted to Netaway Pty Ltd to supply specialist leaded racing fuel (sections 13 and 17D). Under the Act, entities such as Netaway Pty Ltd that have been granted an approval to supply a specific type of fuel must adhere to the conditions of that approval. These conditions include ensuring that the fuel is used in a manner that minimises environmental impact, protects occupational and public health, and meets consumer needs. In the case of specialist leaded racing fuel, this means ensuring that it is supplied in sealed containers, used in controlled environments, and accompanied by appropriate safety information. Furthermore, the Act mandates that the Minister consults with the Fuel Standards Consultative Committee before varying an approval, as a means of ensuring that the decision is informed and considers the broader implications for environmental protection and public health. The Act imposes penalties for non-compliance with its provisions. Section 24 of the Act states that any person who contravenes a provision of the Act, or a condition of an approval, commits an offence. The penalties for such offences can include fines of up to $50,000 for individuals and $250,000 for bodies corporate, as specified in section 25. Additionally, the Act provides for the enforcement of compliance through the courts, where a court may make an order for the cessation of non-compliant activities or the rectification of non-compliance. The severity of the penalties reflects the importance of adhering to the standards set by the Act to protect the environment, public health, and consumer interests.

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