Notice of Decision to Vary an Approval under the Fuel Quality Standards Act 2000 for BP Australia Pty Ltd

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

Legislation au C2015G00168 In force Gazette

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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.

Name of approval holder

BP Australia Pty Ltd.

Period of operation

The period of operation of the approval is from 1 January 2015 for two years.

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:

  1. specialist leaded racing fuel containing any of the following parameters:
  • Lead up to 0.85 g/L
  • Sulfur up to 500 mg/kg

will be taken to comply with the relevant 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 petrol supplied by the approval holder and regulated persons specified in Annexure 1 of the instrument, and is granted subject to conditions specified in section 17 of the Act and in Annexure 2 of the approval.

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. 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 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.

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

5  December 2014

 

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to establish and regulate fuel quality standards in the country, aiming to protect the environment, occupational and public health, and consumer interests. The Act provides a framework for the approval of variations to fuel quality standards, which can be granted under specific conditions to address niche market needs while minimising potential risks. This legislation fills the gap by allowing for controlled exceptions to standard fuel quality requirements under strict oversight. The decision to approve a variation in the fuel standard for petrol, as seen in the notice issued by the Assistant Secretary under section 17A of the Act, aims to balance environmental and health protections with the interests of the motor sport industry and regional economic benefits. The approval granted to BP Australia Pty Ltd for the supply of specialist leaded racing fuel exemplifies the Act's objective to allow for controlled exceptions where necessary, ensuring that the unique needs of the motor sport sector are met without compromising broader public and environmental health considerations.

Scope and Application

The Fuel Quality Standards Act 2000 provides a framework for setting and approving variations to fuel quality standards in Australia. Under this Act, the Assistant Secretary of the Environment Protection Branch, acting as a delegate of the Minister for the Environment, has the authority to approve variations to the existing fuel standards. This particular notice under section 17A of the Act concerns the approval granted to BP Australia Pty Ltd for a variation of the Fuel Standard (Petrol) Determination 2001. The approval allows the supply of specialist leaded racing fuel containing specific parameters for lead and sulfur to be considered compliant with the petrol standard for legitimate motor sport activities. This approval is valid from 1 January 2015 for a period of two years and applies to petrol supplied by the approval holder and regulated persons specified in the relevant documents. The decision to grant this approval was based on considerations such as environmental protection, occupational and public health and safety, consumer interests, and the impact on economic and regional development, ensuring that the risks associated with the use of these fuels are minimised while supporting the motor sport industry.

Key Provisions

The main sections of the Fuel Quality Standards Act 2000, relevant to this approval, include sections 13, 15, and 17A. Section 13(1) allows the Minister to approve variations to the fuel standards if it is satisfied that the variation will not have an unacceptable impact on the environment, public health, or safety. Section 15(1) requires the Minister to give reasons for granting an approval. Section 17A(1) mandates the Minister to provide a notice of the decision to grant the approval, which includes details such as the name of the approval holder, the period of operation, and the specifics of the approval. The obligations imposed by this Act on BP Australia Pty Ltd, as the approval holder, include adhering to the conditions outlined in section 17 of the Act and those specified in Annexure 2 of the approval. This entails supplying the specified specialist leaded racing fuel to regulated persons, ensuring that the fuel is used only in legitimate motor sport activities and not on freshwater lakes and waterways. They must also ensure that safe handling information is provided with the fuel and that the volume of fuel supplied is limited to what is necessary for the specified activities. Additionally, BP Australia Pty Ltd must ensure that the fuel complies with the environmental and health standards set by the Act. Any breaches of the conditions set forth in the approval may result in civil or criminal consequences. Under section 38 of the Act, a person who contravenes the Act or the regulations may be liable for a penalty. For a body corporate, the maximum penalty can be up to $210,000 for each day of the contravention, which can add up to substantial amounts if the contravention continues for an extended period. Additionally, individuals responsible for the contravention, such as officers or directors of BP Australia Pty Ltd, may also face personal penalties. Criminal proceedings can also be initiated for serious breaches, which could result in further penalties including fines and imprisonment.

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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.