Notice of Decision to vary the Fuel Quality Standards (Petrol) Determination 2019 - ERC Racing Pty Ltd

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to regulate the quality of fuels supplied in Australia, with the primary aim of protecting the environment and public health. This legislation establishes the framework for setting fuel quality standards and allows for variations to these standards under specific circumstances. The Act empowers the Assistant Secretary of the Energy Security Branch within the Department of the Environment and Energy to grant approvals for deviations from the established fuel quality standards, subject to certain conditions that ensure minimal environmental and health risks. The policy objective of the Act is to balance the need for high-quality fuels with the practical requirements of various sectors, including the motor sport industry, while safeguarding public and environmental health.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities and individuals involved in the supply and use of fuel within Australia, particularly focusing on compliance with the quality standards set forth by the Act and its subordinate determinations. The Act is a Commonwealth law, thus it has jurisdiction over the entire nation, aiming to regulate fuel quality to protect the environment, ensure public health and safety, and cater to the needs of consumers, particularly in niche markets such as specialist racing fuels. The Act provides for the establishment of fuel quality standards through determinations and allows for variations to these standards under certain conditions. The approval process outlined in the Act involves consultation with relevant committees and consideration of environmental, health, safety, and economic impacts. In this particular instance, ERC Racing Pty Ltd has been granted an approval to vary the fuel quality standards for petrol to supply specialist racing fuel, subject to specific conditions that mitigate environmental and health risks while recognising the unique needs of the motor sport industry. The approval is in effect until 30 November 2022, and it is contingent upon compliance with the conditions specified in the Act and the approval itself.

Key Provisions

The key provisions of the Fuel Quality Standards Act 2000 (the Act) are contained in sections 13 and 17A, which provide for the approval of variations to the fuel quality standards set out in the Fuel Quality Standards (Petrol) Determination 2019 (the Petrol Determination). Under section 13 of the Act, the Assistant Secretary, Energy Security Branch can grant an approval to vary the Petrol Determination, provided that certain conditions are met. Section 17A of the Act requires the Assistant Secretary to provide notice of any such approval in the Gazette. The approval granted in this case varies the fuel standard for petrol so that petrol containing a maximum methyl tertiary butyl ether (MTBE) content of up to 50 per cent volume by volume and a maximum oxygen content in petrol of up to 13.9 per cent m/m is taken to comply with the relevant parameters specified in the Petrol Determination in respect of the supply of specialist racing fuel for use in legitimate motor sport activities. The Act imposes certain obligations on the approval holder, ERC Racing Pty Ltd, and the regulated persons specified in Annexure 1 of the approval. These include ensuring that the fuel supplied under the approval complies with the conditions of the approval, and that safe handling information is provided with the fuel. The approval is granted subject to the conditions specified in section 17 of the Act and the conditions specified in Annexure 2 of the approval. The approval holder and regulated persons must also ensure that the fuel is not permitted in activities occurring on freshwater lakes and waterways. Breach of the conditions of the approval, or failure to comply with the obligations imposed by the Act, may result in civil or criminal consequences. Under section 24A of the Act, a person who contravenes a condition of an approval is liable to a penalty of up to $11,100 for a corporation, or $2,220 for an individual. In addition, under section 24C of the Act, a person who is found guilty of an offence against the Act is liable to a fine of up to $121,200 for a corporation, or $24,240 for an individual. The maximum penalties for contravening a condition of an approval or committing an offence against the Act are therefore significant, and it is important that the approval holder and regulated persons comply with the obligations imposed by the Act and the conditions of the approval.