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

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

Legislation au C2022G00527 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 AND THE FUEL QUALITY STANDARDS (ETHANOL E85) DETERMINATION 2019
- VP RACING 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

VP Racing Fuels Pty Ltd (ABN 55 099 469 799)

Details of the approval

The approval to VP Racing Fuels Pty Ltd was granted to vary the fuel standard set out in the Fuel Standard (Petrol) Determination 2001, the Fuel Quality Standards (Petrol) Determination 2019 (the 2019 Petrol Determination), the Fuel Standard (Ethanol E85) Determination 2012, and the Fuel Quality Standards (Ethanol E85) Determination 2019 (Ethanol E85 2019 Determination) to permit the supply of petrol and ethanol E85 as specified in the original grant of approval. The Fuel Standard (Petrol) Determination 2001 was superseded by 2019 Petrol Determination, and the Fuel Standard (Ethanol E85) Determination 2012 was superseded by the Ethanol E85 2019 Determination. Original approvals and subsequent variations continued to apply under the 2019 Determinations.

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 and to include petrol with a maximum diisopropyl ether (DIPE) content of up to 25 per cent v/v. 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 fuels subject to this approval are supplied and used in small quantities for legitimate motor sport activities, the higher levels of ethanol, olefins and MTBE 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 relative to normal fuels, giving a disincentive for waste, misuse or spillage.

It is therefore not expected that permitting the supply of the fuels covered by this approval for legitimate motor sport activities would 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. 

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 with currently available technology. VP Racing Fuels’ application makes available to consumers a range of unleaded fuels for use in motorcycle, circuit, and drag racing. 

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 by the Parliament of Australia to establish and maintain fuel quality standards to protect the environment, public health, and safety, and to meet consumer needs. This Act was introduced to address the need for regulating fuel quality to ensure environmental protection and safety. The Act allows for the setting of fuel quality standards and the granting of approvals for the supply of fuels that do not conform to these standards under specific conditions. In this context, the Department of Industry, Science, Energy and Resources, through its delegate, the Head of the Offshore Resources and Liquid Fuels Division, has granted an approval to VP Racing Fuels Pty Ltd. This approval permits the supply of petrol and ethanol E85 for use in motor sports, which are supplied in small quantities and used in controlled environments, thus minimising environmental impact and health risks. The policy objective is to balance the need for environmental protection and public safety with the interests of the motor sports industry and regional economic benefits.

Scope and Application

The Fuel Quality Standards Act 2000, applicable on a Commonwealth level, governs the quality of fuel sold in Australia, including petrol and ethanol E85. This legislation ensures that fuel standards protect the environment, public and occupational health and safety, consumer interests, and economic and regional development. The Act applies to entities such as VP Racing Fuels Pty Ltd, which have been granted approvals for variations in fuel standards to cater to specific needs, such as those in the motor sport industry. The Act’s application extends to varying the fuel quality standards through subordinate instruments such as determinations and approvals, as evidenced by the Fuel Quality Standards (Petrol) Determination 2019 and the Fuel Quality Standards (Ethanol E85) Determination 2019. The Act does not specify explicit exclusions or thresholds, but it mandates conditions for approvals to ensure that the fuel supplied does not adversely impact the environment or public health. This regulatory framework ensures that fuel standards are tailored to specific industries while maintaining overarching protections.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) sets the legal framework for regulating the quality of fuel supplied in Australia. Under section 13 of the Act, the Minister can grant approvals to vary the fuel quality standards for petrol and ethanol E85 to permit the supply of these fuels under certain conditions (s13). The Act also specifies the procedures for making and varying these approvals (s17A). In this instance, the approval holder, VP Racing Fuels Pty Ltd, has been granted an approval to vary the fuel standards to permit the supply of petrol and ethanol E85 for legitimate motor sport activities, effective until 30 June 2023 (s13A). The obligations imposed by the Act on the approval holder include ensuring that the fuel supplied complies with the specified conditions, which include restrictions on the use of the fuel in certain environments and the provision of safe handling information (s13(2)(b)). The approval holder must also ensure that the fuel is only supplied for legitimate motor sport activities and is not used in a way that could harm the environment or public health and safety (s13(2)(c)). The Act requires the approval holder to maintain records of the fuel supplied and to report any breaches of the approval conditions to the relevant authorities (s13(3)). Failure to comply with the conditions of the approval may result in a range of consequences, including fines and imprisonment. Under section 17G of the Act, any person who contravenes an approval condition may be fined up to $22,200 for an individual offence and $111,000 for a corporate offence. In addition, under section 17H, any person who causes or permits a contravention of an approval condition may be subject to the same penalties. The Act also provides for the cancellation of an approval if it is considered that the approval holder has failed to comply with the conditions of the approval (s17J).

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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.