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

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

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

Legislation au C2016G00001 In force Gazette

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	Commonwealth of Australia	Gazette
Published by the Commonwealth of Australia		GOVERNMENT NOTICES

ASSISTANT SECRETARY, ASSESSMENTS (NSW, ACT) AND FUEL BRANCH,

DEPARTMENT OF THE ENVIRONMENT

NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING AN APPROVAL FOR A VARIATION OF THE FUEL STANDARD (PETROL) DETERMINATION 2001

I, Dane Roberts, A/g Assistant Secretary, Assessments (NSW, ACT) and Fuel Branch, delegate of the Minister for the Environment, the Hon Greg Hunt, MP, provide the following information concerning the Minister’s 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 period of operation of the approval is from 1 January 2016 to 31 December 2016.

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 specialist leaded racing fuel containing any of the following parameters:

Lead up to 1.85 g/L
Methyl tertiary-butyl ether (MTBE) up to 55 per cent v/v
Olefins up to 60 per cent v/v
Oxygen up to 14.57 per cent m/m in petrol not containing ethanol
Oxygen up to 14.57 per cent m/m in petrol containing ethanol
Sulfur up to 375 mg/kg

will be taken to comply with the lead, MTBE, olefin, oxygen and sulfur 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 fuel supplied by the above company and the regulated persons specified in Annexure 1 of the approval instrument. The approval is subject to the conditions set out in Annexure 2 of the approval instrument and in section 17 of the Act.

Summary of reasons for the approval

Section 15 of the Act provides that I must have regard to certain matters when deciding whether or not to grant an approval under section 13 of that Act to vary the Petrol Determination. In addition, section 24A of the Act requires me to consult with the Fuel Standards Consultative Committee before granting an approval and to have regard to any recommendation of the Committee arising out of that consultation.

I am conscious of the increasing concerns about the impact of lead on both the environment, and occupational and public health and safety, which is evidenced in the National Health and Medical Research Council 2015 report on the effects of lead on human health (www.nhmrc.gov.au/guidelines-publications/eh58). I have also had regard to the recommendation from the Committee.

For these reasons, it is the Government’s intention to consider phasing out lead in racing fuel over one to two years, beginning in 2017.

I have granted a one year approval for this application to enable further discussion with suppliers, motor racing organisations and historic vehicle associations on the phase-out timeframe and how the industry might need to adjust its practices.

(a) The protection of the environment

As the fuel subject to this approval is supplied and used in small quantities for motor sport activities, the higher levels of MTBE and oxygen are not expected to impact significantly on ambient air quality. However, it is uncertain about the long term risk to the environment that is caused by the ongoing use of lead in the fuel.

We do know that the consequences of even a small amount of MTBE contaminating water sources can be significant. As such, it is a standard condition of approving a variation of the Petrol Determination in relation to fuel containing MTBE above the limit specified in that Determination, that the fuel not be used for activities occurring on fresh water lakes and waterways.

(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.

(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. An immediate decision to disallow the continued and controlled supply of specialist leaded racing fuels would have an adverse impact on national motor sport competitions and the economic benefits that flow from them.

Dane Roberts

A/g Assistant Secretary

21 December 2015

Overview

The Fuel Quality Standards Act 2000 was enacted by the Commonwealth Parliament to establish and regulate fuel quality standards in Australia, addressing issues related to the environmental impact and health risks associated with the use of certain substances in fuel. This Act aims to balance the need for high-quality fuels that protect public health and the environment with the requirements of various industries, particularly motor sports. The Minister for the Environment, the Hon Greg Hunt, MP, has the authority to approve variations to the established fuel standards, as demonstrated in the notice concerning an approval for VP Racing Fuels Pty Ltd. This approval allows for the use of specialist leaded racing fuel, subject to specific parameters, for legitimate motor sport activities during the period from 1 January 2016 to 31 December 2016. The decision to grant this approval reflects the government's intent to phase out lead in racing fuel over the coming years, while considering the implications for motor sport, regional economies, and public health. The approval process also involves consultation with relevant stakeholders to ensure that the phase-out is managed effectively.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality of fuel sold in Australia and applies to all entities involved in the supply and use of fuel, including manufacturers, suppliers, and consumers. This legislation is enacted at the Commonwealth level and sets out the standards for petrol, diesel, and other fuels. The Act applies to the supply of fuel in all states and territories of Australia, ensuring a uniform approach to fuel quality across the nation. However, the Act may be supplemented by subordinate legislation, which can introduce additional conditions or variations to the fuel standards. One such variation is detailed in the notice under section 17A of the Act concerning an approval for a variation of the Fuel Standard (Petrol) Determination 2001, which allows for specific exceptions for specialist leaded racing fuels. These approvals are subject to stringent conditions aimed at mitigating environmental and health risks while considering the economic and regional impacts of motor sports. The approval process involves consultation with relevant stakeholders and takes into account the potential risks to the environment and public health while balancing the interests of the motor sport industry.

Key Provisions

The main sections of the Fuel Quality Standards Act 2000 relevant to this approval are sections 13, 15, 17, and 24A. Section 13 allows the Minister to grant an approval to vary the fuel standards set out in the Fuel Standard (Petrol) Determination 2001. Section 15 outlines the considerations the Minister must take into account when deciding whether to grant such an approval, including environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. Section 17 specifies the conditions that can be imposed on an approval, and section 24A requires consultation with the Fuel Standards Consultative Committee before granting an approval. The obligations imposed by the Act on the parties it governs include ensuring that the approved fuel is used solely for legitimate motor sport activities, adhering to the conditions set out in the approval, and preventing the fuel from being used in activities on fresh water lakes and waterways. The approval holder, VP Racing Fuels Pty Ltd, and the regulated persons specified in Annexure 1 of the approval instrument must comply with these obligations for the duration of the approval period. The Act also imposes civil and criminal consequences for breaches. Any person who contravenes an approval condition can be subject to fines and penalties. For corporations, the maximum penalty for a contravention of the Act is $210,000, while for individuals, the maximum penalty is $21,000. In addition to financial penalties, non-compliance may also lead to legal action by the Minister, which could further exacerbate the consequences for the parties involved.

Area of Law: Environmental Law
Instrument: Gazette Notice
Concepts: Regulatory Standards; Reporting & Disclosure Obligations; Enforcement Powers

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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.

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