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 2024)

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

Legislation au C2023G00796 In force Gazette

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HEAD OF DIVISION, GAS AND LIQUID FUELS DIVISION

DEPARTMENT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER


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 2024)

 

I, Paula Svarcas, Head of Division, Gas 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 existing approval to Race Fuels Pty Ltd was granted to vary the Fuel Quality Standards (Petrol) Determination 2019 to permit the supply of petrol specified in the original grant of approval.

Pursuant to paragraphs 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 2023).  

Details of the variation

Pursuant to paragraph 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 2024. The approval comes into force at the immediate conclusion of the previously granted approval, being from 1 July 2023 until 30 June 2024.

The regulated persons list has 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.

 

 

 

 

 

………………………………………………………………………….

 

Paula Svarcas

Head of Division, Gas and Liquid Fuels Division 

23 June 2023

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuels sold in Australia, aiming to protect the environment, public health, and consumer interests while also considering economic factors. The Act provides the framework for establishing and enforcing fuel quality standards and allows for variations in these standards under specific circumstances. This legislation was introduced to address issues related to the quality and composition of fuel, ensuring that fuels available on the market do not adversely impact the environment or human health. The Act is administered by the Australian Parliament and seeks to balance the need for high-quality fuels with the economic and practical needs of various sectors, including motor sports. The policy objective of the Act is to safeguard environmental and public health standards while also supporting economic activities that depend on the use of specific fuel types.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of petrol and other liquid fuels within Australia. Specifically, this Act provides the legislative framework for regulating fuel quality standards and granting approvals for variations to these standards to certain entities. The approval granted to Race Fuels Pty Ltd under this Act pertains to the supply of petrol for motor sport activities, which is subject to specific quality standards. The approval extends to the supply of petrol until 30 June 2024, following a consultation process with the Fuel Standards Consultative Committee as mandated by the Act. This approval is necessary to permit the supply of petrol that meets the particular requirements of motor sport activities, which may differ from standard petrol supplied to the public. The Act ensures that such approvals are granted with consideration for environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. The Act's provisions may be further detailed through subordinate instruments, which provide additional guidelines and conditions for the implementation and enforcement of the Act.

Key Provisions

The main operative sections of the Fuel Quality Standards Act 2000, relevant to this notice, include section 13, which allows for the approval of variations to fuel quality standards, and section 17A, which provides the authority to issue notices for these variations. Under section 13, the Head of Division can approve variations to the standards if certain conditions are met, while section 17A empowers the issuance of a notice to extend the approval period as specified in this case. Section 15 outlines the process for granting such approvals, and section 24A mandates consultation with the Fuel Standards Consultative Committee before any decision is made. This notice, issued under section 17A, extends the approval granted to Race Fuels Pty Ltd to vary the petrol quality standards until 30 June 2024. The obligations imposed by the Act on Race Fuels Pty Ltd and other regulated entities include ensuring compliance with the specified fuel quality standards and using the approved petrol only for the intended motor sport activities. The entity must also adhere to any additional conditions set out in the approval, such as prohibiting the use of the fuel on freshwater lakes and waterways. Additionally, Race Fuels Pty Ltd is responsible for providing safe handling information with the fuel and ensuring that the fuel is supplied in sealed containers of up to 200 litres capacity. These obligations are designed to safeguard the environment, protect public and occupational health and safety, and meet the needs of the motor sport community. Breach of the provisions outlined in the Fuel Quality Standards Act 2000 can lead to various civil and criminal consequences. Under section 24 of the Act, a person who contravenes a provision of the Act, or any condition or requirement of an approval, is liable to a penalty. The maximum penalty for an individual is $22,200 or, in the case of a corporation, up to $111,000. Additionally, persistent or serious breaches may result in the revocation of the approval, which could significantly impact the entity’s operations and the motor sport industry. The Act also provides for the possibility of legal action against the entity for any environmental damage or health and safety issues arising from non-compliance.

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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.