Notice under section 17a of the Fuel Quality Standards Act 2000 for variation of the Fuel Quality Standards (Petrol) Determination 2019 - Race Fuels Pty Ltd (Expiry 30 June 2023)

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

Legislation au C2022G00528 In force Gazette

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HEAD OF DIVISION, OFFSHORE RESOURCES AND LIQUID FUELS DIVISION

DEPARTMENT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES


NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 FOR VARIATION OF THE FUEL QUALITY STANDARDS (PETROL) DETERMINATION 2019
- RACE FUELS PTY LTD (EXPIRY 30 JUNE 2023)

 

I, Shane Gaddes, Head of Division, Offshore Resources and Liquid Fuels Division, delegate of the Minister, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).  

Name of approval holder

Race Fuels Pty Ltd (ABN 23 090 961 265)

Details of the approval

The approval to Race Fuels Pty Ltd was granted to vary the Fuel Standard (Petrol) Determination 2001 and the Fuel Quality Standards (Petrol) Determination 2019 (2019 Determination) to permit the supply of petrol specified in the original grant of approval. The Fuel Standard (Petrol) Determination 2001 was superseded by 2019 Determination. Original approvals and subsequent variations continued to apply under the 2019 Determination.

Pursuant to section 13A(1) and (2) of the Act, the listed approval came into force on the date specified in the approval, and remain in force for the period specified in the approval extension (being until 30 June 2022).  

Details of the variation

Pursuant to section 17D(1) of the Act, the period of effect of the listed approval has been varied in respect of the supply of petrol until 30 June 2023. The conditions and regulated persons list have also been updated.

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the approval as provided for in section 15 of the Act for the following reasons:

a)            The protection of the environment

As the fuel subject to this recommendation is supplied and used in small quantities for motor sport activities. In this context, higher levels of ethanol and oxygen are not expected to impact significantly on ambient air quality.

The consequences of even a small amount of MTBE or ETBE contaminating freshwater sources can be significant. It is a standard condition of section 13 approvals for fuel containing MTBE, ETBE, or DIPE 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 available to the public and the price provides a strong disincentive for any waste, misuse, or spillage.

It is therefore not expected that permitting the supply of the fuel covered by this approval for motor sport activities will have an adverse effect on the environment. 

b)         The protection of occupational and public health and safety

The fuel is not likely to have a significant impact on the health and safety of users as the volume of fuel used is low and confined to racing events. The fuel will be used by a small number of competitors and no contact with the general public is expected.

Specialist racing fuels are supplied in sealed containers of up to 200 litres capacity and are used in small quantities, predominantly 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. 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 racing fuels meet the needs of a niche market for specific categories 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.

d)         The impact on economic and regional development

Many racing venues are located outside major population areas. Motor and water sports events provide an ongoing financial benefit to these regional communities. A decision to disallow the continued and controlled supply of specialist racing fuels would have an adverse effect on national and regional motor sport competitions and the economic benefits that flow from them.

 

 

 

 

 

………………………………………………………………………….

 

Shane Gaddes

Head of Division, Offshore Resources and Liquid Fuels Division 

23 June 2022

 

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of liquid fuels in Australia, ensuring that they meet specified standards to protect the environment, and the health and safety of consumers and workers. The Act was introduced by the Commonwealth Parliament to address the need for consistent and high standards in fuel quality across the nation. The policy objective of the Act is to safeguard public health, environmental quality, and the interests of consumers and regional economies by setting stringent fuel quality standards. This legislation empowers the relevant authorities to oversee and enforce compliance with these standards, ensuring that fuels sold in Australia do not compromise air quality or public safety. The Act also provides mechanisms for the variation of fuel quality standards to accommodate specific needs, such as those for specialist racing fuels, as long as they do not pose significant risks to the environment or public health.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the production, distribution, and supply of fuel in Australia, focusing on the quality of petrol to protect the environment, ensure public health and safety, and meet consumer needs. This Act is applicable nationally, as it is a Commonwealth Act. The Act permits the Minister for Industry, Science, Energy, and Resources to issue approvals that allow deviations from the standard fuel quality requirements, particularly for niche markets such as motor sports. These approvals can be granted to specific entities, such as Race Fuels Pty Ltd, to supply petrol with different specifications than those outlined in the standard determinations. The Act also allows for the extension of such approvals, as evidenced by the extension granted to Race Fuels Pty Ltd for their supply of petrol until 30 June 2023. The Act does not specify exclusions but rather allows for exemptions based on particular conditions and needs, subject to consultation with relevant committees and the Minister’s discretion. The application and scope of the Act can be further detailed through subordinate instruments, which provide specific guidelines and conditions for the issuance and enforcement of approvals.

Key Provisions

The key provisions of this piece of legislation focus on granting a specific approval to Race Fuels Pty Ltd under the Fuel Quality Standards Act 2000. Section 13 of the Act enables the Minister to approve variations to fuel quality standards for petrol. In this instance, the approval (sections 13A(1) and (2)) pertains to the supply of petrol specified in the original grant of approval, which was initially set to expire on 30 June 2022 but has now been extended until 30 June 2023 (section 17D(1)). The approval allows for the supply of petrol containing higher levels of ethanol and oxygen, which is intended for use in motor sport activities. This variation was made after consultation with the Fuel Standards Consultative Committee as required by section 24A of the Act. The obligations imposed by this Act on Race Fuels Pty Ltd and other entities governed by it include ensuring that the petrol supplied under this approval is used strictly for motor sport activities and not in any other context, particularly avoiding freshwater lakes and waterways (section 13 condition). The approval also requires that the petrol be supplied in sealed containers of up to 200 litres, and safe handling information must be provided with the fuel. The company must also ensure that the petrol is not used in a manner that could adversely affect the environment or pose a risk to occupational and public health and safety. Breaches of the conditions set forth in this approval could result in civil or criminal consequences. While the specific penalties are not detailed in the text, the Act generally allows for enforcement actions against any party found to be in breach of the approved conditions. Such breaches could potentially lead to fines, legal action, and revocation of the approval. Given the controlled nature of the approval and the limited scope of its application, it is expected that compliance would be strictly monitored and enforced to ensure the protection of the environment, public health, and safety.

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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.