ENVIRONMENTAL RISK MANAGEMENT
AUTHORITY DECISION
9 May 2007
Application Code
HRE06001
Application Type
To reassess any hazardous substance under section 63A of the
Hazardous Substances and New Organisms Act 1996 (the Act)
Applicant
Energy Efficiency and Conservation Authority
Date Application Received
26 January 2007
Submission Period
26 January 2007 - 12 March 2007
Consideration Date
4 May 2007
Considered by
A Committee of the Authority
Purpose of the Application
Reassessment of the requirement that petrol/ethanol blends be
stored in tanks with secondary containment.
1 Summary of decision
1.1
The controls on petrol-ethanol blends of 1 to 10% v/v ethanol1 have been varied in
accordance with the relevant provisions of the Act, the HSNO Regulations, and the
HSNO (Methodology) Order 1998 (the Methodology) so as to allow the storage of
the substance in existing below ground containers without a form of secondary
containment in certain circumstances.
1.2
In particular,
1.2.1
underground tanks without secondary containment installed in highly
sensitive areas (Zone A)2 cannot be used for the storage of E10.
1.2.2
underground tanks without secondary containment installed in moderately
sensitive areas (Zone B)2 must either have:
1.2.3
1.2.2.1
undertaken a successful tank integrity test within 12 months prior to or
within 6 months after the date of changeover to the storage of E10; or
1.2.2.2
a demonstrated record of not less than two years duration of successful
stock reconciliation, prior to the date of changeover to the storage of
E10.
underground tanks without secondary containment installed intended for
the storage of E10 must have a stationary container test certificate.
The substance is identified as “Petrol-ethanol blends of 1 to 10% v/v ethanol” on the ERMA New Zealand
Hazardous Substances Register and is referred to as “E10” in this decision
1
2
See Code of Practice for the Management of Existing Stationary Container Systems up to 60,000 litres Capacity
2 Legislative criteria for the application
2.1
The application was lodged by the Energy Efficiency and Conservation Authority
pursuant to section 63A following grounds for reassessment having been
established under section 62 by the Authority in its decision dated 14 November
2006.
2.2
Under section 63A, the Authority may, following a finding that there are grounds
for the reassessment of a hazardous substance, conduct a modified reassessment of
the substance.
2.3
According to section 63A(1), such a modified reassessment may be carried out
where the Authority considers that the reassessment will involve only a specific
aspect of the approval and the proposed amendment is not a minor or technical
amendment to which section 67A applies.
2.4
According to section 63A(2), the Authority, as a result of a modified reassessment
under section 63A, may vary the controls that attach to a hazardous substance but
may not revoke an approval given to the substance under the Act to import or
manufacture the substance.
2.5
Pursuant to section 63A(6), in deciding whether to approve or decline an
application for a modified reassessment, the Authority must take into account all
the effects associated with the reassessment proposal and the best international
practices and standards for the safe management of the substance.
2.6
This reassessment decision was determined in accordance with section 63A, taking
into account matters to be considered in that section and matters specified under
Part II of the Act. Unless otherwise stated, references to section numbers in this
decision refer to sections of the Act.
2.7
Consideration of the application also followed the relevant provisions of the
Methodology. Unless otherwise stated, references to clauses in this decision refer to
clauses of the Methodology.
3 Application process
3.1
The application was formally received on 26 January 2007.
3.2
In accordance with sections 53(1) and 53A, and clauses 2(2)(b) and 7, public
notification was made on 26 January 2007.
3.3
Various government departments, Crown entities, other agencies, territorial
authorities, NGOs and interested parties, were notified of the receipt of the
application (sections 53(4) and 58(1)(c), and clauses 2(2)(e) and 5) and provided
with an opportunity to comment or make a public submission on the application.
3.4
Submissions closed on 12 March 2007.
3.5
Submissions were received from Gull NZ Ltd (“Gull”), Mobil Oil New Zealand
Limited (“Mobil”). Auckland Regional Council (“the ARC”), LanzaFuels Limited
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(“LanzaFuels”) and BP Oil New Zealand Limited (“BP”), Full copies of the
submissions are attached to the Agency’s Evaluation and Review Report (“the E&R
Report”).
3.6
As neither the submitters nor the applicant asked to be heard in support of their
submissions a hearing was not required to be held.
3.7
The applicant and the submitters were given the opportunity to comment on the
E&R Report and the controls proposed therein. As a result, the applicant, the ARC,
Gull and BP provided comments and these were placed before the Committee.
3.8
No external experts were used in the consideration of this application (clause 17).
3.9
A time waiver was issued under section 59 as the circulation of the E&R report was
delayed by two days.
3.10
The following members of the Authority’s Hearings Committee considered the
application (section 19(2)(b)): Professor George Clark, Ms Helen Atkins and Dr
Deborah Read.
3.11
The information available to the Committee comprised:
 the application, including confidential appendices.
 the Code of Practice for the Management of Existing Stationary Container Systems up to
60,000 litres Capacity.
 Submissions from Gull, Mobil, the ARC, LanzaFuels and BP.
 the E&R Report.
 comments on the E&R report from the applicant, the ARC, Gull and BP.
 advice from the Agency on these comments.
4 Consideration
Purpose of the application
4.1
The purpose of the application is to reassess the requirement that below ground
containers for the storage of E10 must have a secondary containment system.
Sequence of the consideration
4.2
In accordance with clause 24, the approach to the consideration adopted by the
Committee was to:
 establish whether it is appropriate to conduct a modified reassessment of E10
under section 63A.
 identify the controls affected by the reassessment proposal.
 identify the effects associated with the proposal to vary the controls that attach
to E10.
 assess the effects associated with the proposal on:
o the biological and physical environment
o human health and safety
o society and the community
o the market economy
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

o Māori issues and concerns
o New Zealand’s international obligations.
identify and assess best international practices and standards for the safe
management of hazardous substances.
evaluate overall risks, costs, and benefits to reach a conclusion.
set the controls.
The requirements of section 63A
4.3
According to section 63A(1), a modified reassessment may be carried out where the
Authority considers that the reassessment will involve only a specific aspect of the
approval and the proposed amendment is not a minor or technical amendment to
which section 67A applies.
4.4
As the proposal relates to changes to the effects of E10 which are likely to be more
than minor, the Committee is satisfied that the amendment proposal could not be
considered as a minor or technical amendment to which section 67A applies.
4.5
As the reassessment only relates to a specific aspect of the approval of E10, namely
its storage in existing underground tanks without secondary containment, the
Committee is satisfied that it can properly be considered under section 63A.
Identification of the controls affected by the reassessment proposal
4.6
The controls that are the subject of this reassessment are:
4.6.1
Regulation 40 of the Hazardous Substances (Emergency Management)
2001 Regulations. This regulation requires that pooling substances held in
a below ground container must have a secondary containment system with
a capacity at least equal to the total pooling potential; and
4.6.2
Clauses 4 and 5 of Schedule 9, Hazardous Substances (Dangerous Goods
and Scheduled Toxic Substances) Transfer Notice March 2004. Schedule 9
prescribes controls relating to secondary containment and was applied to
E10 with the omission of clause 4(3) and replacing “regulations 39 or 40”
in clause 5(1)(a) by “regulation 39”. This means that regulation 40 of the
emergency management regulations must be complied with as written.
That is, underground tanks holding E10 must have secondary
containment.
4.7
The applicant is proposing that the controls on E10 be made to correspond with
those for petrol by applying the same variations to regulation 40 as are applied to
petrol. This would mean applying Schedule 9 controls to E10 as it is applied to
petrol.
4.8
The effect of this is that existing underground tanks without secondary
containment (eg single-skinned tanks) could be used for E10 if the existing tank
complies with a compliance plan or a code of practice approved by the Authority
under section 79.
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4.9
The Committee notes that compliance plans are approved by the Authority and
that they set out a programme for bringing a secondary containment system into
compliance with regulation 40 (or variations to regulation 40), compliance with
which is deemed to be compliance with the regulation.
4.10
The Committee also notes that the Authority has approved a code of practice for
the use of existing tanks; the Code of Practice for the Management of Existing Stationary
Container Systems up to 60,000 litres Capacity. This Code provides that:
4.10.1
existing below-ground stationary tanks installed in highly sensitive areas
(Zone A) must have a form of secondary containment with the space
between the stationary tank and the secondary containment periodically
monitored.
4.10.2
existing single skin below ground stationary tanks without secondary
containment may be used in moderately sensitive areas (Zone B) under
some circumstances.
4.10.3
existing single skin below ground stationary tanks without secondary
containment may be used in areas of lesser sensitivity (Zone C).
Identification of the effects associated with the proposal to vary the
controls that attach to E10
4.11
The Committee identified the following significant effects as being associated with
the proposal to vary the existing controls on underground tanks for the storage of
E10:
4.11.1
An increased risk of adverse effects on the environment due to the
absence of secondary containment systems. It is noted that this risk is
greater than that associated with petrol in single-skinned tanks as ethanol
has a greater ability for transport in the soil environment from leaking
underground storage tanks.
4.11.2
The introduction of E10 in underground tanks without secondary
containment presents a risk to society and community through the
potential for it to adversely affect water supplies and to contaminate
waterways.
4.11.3
The ability to use single-skinned tanks that are currently used for petrol
may increase the rate of uptake of E10 in New Zealand.
4.11.4
The increase in the rate of uptake of E10 provides support for the New
Zealand Government’s strategic response to climate change. In particular,
it will better enable the meeting of biofuels sales targets set by the
Government.
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Assessment of effects on the biological and physical environment
4.12
In approving E10 for release in New Zealand (HSR02058) in August 2003, the
Authority recognised:
“that there are properties in E10, due to the presence of the ethanol, that confer a
different risk profile compared with neat petrol. The property of most concern is
the changed ability for transport in the soil environment from leaking underground
storage tanks. For this reason the Committee has paid special attention to the
construction of underground storage tanks to manage the risks”.
4.13
In line with this comment, both the applicant for this reassessment and the
submitters recognise that double-skinned tanks (that is, tanks with secondary
containment) are “best practice” to eliminate any risk of petrol contamination of
soil or ground water being increased by the presence of ethanol. The parties also
consider that all new and replacement underground storage tanks should be doubleskinned tanks and the Committee notes that this is also required by the HSNO
regulations.
4.14
However, the applicant considers that the environmental risks posed by petrol and
E10 can be addressed effectively by ensuring that leakage from underground tanks
is minimised. If the leakage of underground tanks is minimised, the applicant
maintains that the occurrence of the marginal additional issues associated with E10
are also effectively controlled.
4.15
In addition to this, the applicant understands from discussions with major oil
companies that it is common practice for underground tanks to be inspected, and if
necessary cleaned prior to the addition of petrol/ethanol blends for the first time.
The inspection would also include testing the integrity of tanks and seals, and any
leaks are likely to be identified. Any leaking tanks would have to be remedied
before petrol/ethanol blends were introduced.
4.16
The applicant maintains that, if a code of practice were to be introduced for the
inspection and, where required, cleaning and repair of underground tanks prior to
the first use of petrol/ethanol blends, this would deliver dual benefits. Firstly, one
of the major barriers to the uptake of petrol/ethanol blends would be removed,
potentially allowing for commercial introduction of these fuels and significant
investment in the domestic production of fuel ethanol to take place. Secondly, the
risk of any fuels leaking would be significantly reduced from underground tanks
that have been inspected for the introduction of petrol/ethanol blends.
4.17
This approach is supported by the Ministry for the Environment.
4.18
The Committee agrees that “best practice” requires that underground tanks for the
storage of E10 must have secondary containment and notes that this requirement
does in fact apply to all new tanks for conventional petrol and E10.
4.19
The Committee notes that E10 does have a different risk profile from petrol in soil
and that this risk is of particular concern in areas where use is made of groundwater
resources.
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4.20
However, the Committee considers that these risks can be mitigated by adherence
to controls which address the management of E10 in underground tanks in the
absence of secondary containment.
4.21
In this regard, the Committee notes that a Code of Practice for Management of Existing
Stationary Container Systems up to 60,000 litres Capacity was approved by the Authority
in November 2006.
4.22
This Code of Practice makes reference to the Underground Petroleum Storage
System (UPSS) Code of Practice. The UPSS Code of Practice nominates several site
characteristics that pertain to the risk that may be posed by a below ground
stationary container and recognizes three Environmental Sensitivity Zones. A
précis of these zones is:
1.
Zone A: Highly sensitive areas - areas where there is a high risk that any
leakage from a UPSS will contaminate an aquifer which is used or has
been identified for future use as a source of supply for a reticulated
potable water system.
2.
Zone B: Moderately sensitive areas - areas that are within 100 metres (or
such greater distance that the authority (i.e. the authority having statutory
control or obligation to control the works) shows is needed) of any
pumping station drawing potable water from an underground source or of
areas such as inland waterways and wetlands where any leakage from a
below ground stationary tank will have a medium or long term adverse
effect on that environment, as determined in consultation with the
authority.
4.22.1
Zone C: Areas of lesser sensitivity – areas where any leakage from a below
ground stationary tank is unlikely to pose a significant threat to human life
or the environment.
4.23
The Code provides that existing below-ground stationary tanks installed in Zone A
must have a form of secondary containment with the space between the stationary
tank and the secondary containment periodically monitored.
4.24
The Code also provides that existing single skin below ground stationary tanks
without secondary containment may be used in Zone B under some circumstances.
The Committee considers that the increased environmental and health risks
associated with E10 means that existing tanks without secondary containment used
for the storage of E10 in Zone B must still be subject to good/safe management,
and has accordingly varied the provisions of the Code as it applies to E10.
4.25
The Committee considers that adherence to the Code of Practice for Management of
Existing Stationary Container Systems up to 60,000 litres Capacity (with the proposed
amendments), will ensure that potential risks from spills and leaks will be
adequately managed.
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4.26
The Committee further considers that the requirement in the Code that all tanks
over 5000 litres are subject to stationary container test certification every 10 years
should be extended to tanks under 5000 litres which do not have secondary
containment.
4.27
With these controls in place, the Committee considers that the increased risks that
E10 poses to the environment will be adequately mitigated.
Assessment of effects on human health and safety
4.28
The proposed changes relate to controls that are designed to manage an
environmental risk. However, the Committee accepts that E10 poses an increased
risk to quality sensitive aquifers, which may include potable water sources, and
therefore public health.
4.29
The Committee accepts that the lack of secondary containment for tanks storing
E10 does pose an increased risk to public health. However, the Committee
considers that adherence to the Code of Practice as outlined above, will ensure that
these risks do not arise as secondary containment would be mandatory in highly
sensitive areas and extra precautions taken in moderately sensitive areas.
Assessment of effects on society and the community
4.30
The applicant has referred to the Government’s strategic direction in response to
climate change which was released on 6 October 2006. According to the applicant,
it reflects a level of urgency in relation to the use of biofuels that has not previously
been present. The Committee in particular notes the following excerpts from the
paper “Climate Change Principles”:
 Faced with sufficient consensus on climate change science, responsible
government must act to address the risks for New Zealand’s vulnerable
environment, economy and way of life. While action to reduce greenhouse gas
emissions over the long term will have a moderate cost, the predicted costs and
risks of inaction are expected to be unacceptably high.
 New Zealand’s response should maximise the economic advantages of using
energy and resources more efficiently. New and newly economic technologies
will play a crucial role. Policy should facilitate New Zealand involvement in the
development or adaptation of low-emissions technologies relevant to our needs.
 Our policy response should start with the most achievable options and seek
least-cost solutions. A combination of sectoral and economy-wide measures,
including voluntary, price-based and regulatory measures, is likely to be needed.
Short-term measures must not be inconsistent with likely long-term solutions
and should at the very least curb increases in emissions.
4.31
The applicant also notes that the transport sector continues to rely on fossil fuels
and is a significant contributor to New Zealand’s greenhouse gas emissions. The
transport sector is therefore a key focus of climate change policies. Transport
utilises 83% of New Zealand’s oil consumption. ‘Business as usual’ forecasts
estimate a 35% increase in national transport energy use and greenhouse gas
emissions. Road transport accounts for 75% of this demand growth.
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4.32
The applicant asserts that biofuels are the only renewable fuel options for transport
and that they have been a focus of government policy development since 2002.
The applicant indicates that the use of biofuels clearly supports the policy drivers
noted above and is one of the Government’s flagship climate change policies at
present, due to the advanced nature of the development of the Biofuels Sales
Obligation.
4.33
Accordingly, the Committee considers that the increased benefits to society as
discussed in the preceding paragraphs outweigh the increased risks of the
introduction of E10 into existing underground storage tanks without secondary
containment provided that the Code of Practice (as varied) is adhered to.
Assessment of effects on the market economy
4.34
In its approval of E10 (HSR02058), the Authority did consider the potential costs
to oil companies and refuelling sites that will be required to have bulk tanks that
meet control requirements mandated for the substance to prevent leaks occurring.
The Authority noted that where a site is not able to meet such requirements, E10
would not be permitted to be stored and hence there might be an opportunity cost
for the retailer or user.
4.35
The evidence presented by the applicant and oil companies confirms that the
secondary containment provision is inhibiting the introduction of E10. This is a
potentially significant cost or adverse effect on the market economy.
4.36
The Committee considers that removing the secondary containment provision for
existing tanks will enhance the introduction of E10 and provide potentially
significant beneficial effects on the market economy.
Assessment of effects on Māori issues and concerns
4.37
The Committee has considered this application in accordance with clauses 9(b)(i)
and 9(c)(iv) and sections 6(d) and 8.
4.38
The Committee notes that there is the potential that E10 could have a negative
impact on the relationship of Māori and their culture and traditions with their
ancestral lands, water, sites, waahi tapu, valued flora and fauna and other taonga.
4.39
Such risks could adversely impact the ability of kaitiaki to perform their cultural
duties and environmental obligations.
4.40
The Committee notes that Kaupapa Kura Taiao (ERMA New Zealand’s Maori
Unit) is unaware of any likely impact the appropriately contained E10 could have
on Māori culture or their traditional relationships with their ancestral lands, water,
sites, wāhi tapu, valued flora and fauna or other taonga.
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Assessment of effects on New Zealand’s international obligations
4.41
The Committee accepts that the reassessment proposal could have a significant
effect on New Zealand’s international obligations. This assessment is based on the
following claims:
4.41.1
The applicant has indicated that, if the minimum Biofuels Sales Obligation
level set by the Government is met, New Zealand will not need to account
for just under a million tonnes of carbon dioxide emissions under the
Kyoto Protocol, due to the replacement of fossil fuels by biofuels. This
represents approximately $14.5 million that would be saved by the
Government in respect of its Kyoto Protocol commitments in the first
commitment period (2008-2012) alone.
4.41.2
According to the applicant, if the secondary containment restriction was
relaxed, it would allow for the adoption of the preferred obligation level.
This would result in an increase in total biofuel use, over the minimum
obligation level, of approximately 471 million litres by 2012. This
additional use of biofuels equates to a reduction in transport related
carbon emissions of roughly 1.1 million tonnes total by 2012, with a value
of approximately $17.8 million at the current cost of carbon.
Identification and assessment of best international practices
4.42
The Committee considers that allowing E10 to be stored in existing tanks without
secondary containment is in line with best international practice and standards for
the safe management of hazardous substances. This conclusion is based on the
following:
4.42.1
Petrol/ ethanol blends of up to 10% are currently in widespread use in a
number of countries internationally, including Australia, parts of Europe,
Asia, South America, Canada and many states of the US. In countries
where single skinned underground storage tanks are the norm for mineral
fuels, the applicant is not aware of any additional requirements for
petrol/ethanol blends to be stored in double skinned underground tanks.
4.42.2
In regard to countries where codes of practice and standard operating
procedures have been used to mitigate the risks of petrol/ethanol blend
leaks to the environment, the applicant has provided two cases as
examples, namely Australia and Hawaii.
4.42.3
The US State of Hawaii recently transitioned, over a two year period, from
having no bioethanol blended fuel to having 85% of all petrol as an E10
blend.
4.42.4
As part of introduction of petrol/ethanol blends in Hawaii, a standard
industry practice for introducing the blended fuels into existing
underground storage tanks was developed. As a result of following this
practice, one recognised benefit of the introduction of petrol/ethanol
blended fuels in Hawaii was the identification and elimination of virtually
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all sources of hydrocarbon contamination of the environment from
leaking storage tanks.
4.42.5
Similarly in Australia, the support for the introduction of petrol/ethanol
blends has been accompanied by a programme of inspection, repair and
modification of underground storage tanks at service stations to ensure
compatibility with petrol/ethanol blends. This is happening in parallel
with the adoption, in many States, of performance standards and codes of
practice relating to underground storage tanks generally with a focus on
minimising and preventing leaks and soil and ground water pollution.
5 Conclusion
The Committee accepts that there are potential benefits in making E10 more widely
available. These benefits relate to New Zealand’s ability to take advantage of the
environmental, economic and social benefits of using energy and resources more
efficiently
The Committee also accepts that E10 is likely to become more widely available if the
secondary containment requirements on underground tanks for the storage of E10
are relaxed in terms of existing tanks (i.e. those installed prior to 1 April 2004).
The Committee also considers that the adherence to a Code of Practice, with specific
variations for E10, covering the management of existing tanks without secondary
containment will ensure that the risk of leakage of E10 is minimised.
The Committee considers that there is a marginal risk of E10 contaminating underground
water resources over petrol when stored in underground tanks without secondary
containment. However, taking adherence to the Code of Practice for the management of
existing stationary container systems up to 60,000 litres capacity (as varied for E10) into
account, the Agency considers that this marginal risk is outweighed by the
environmental, economic and social benefits of E10 being more widely available.
The Committee considers that the following control should be removed from the approval
of E10:
3.
For E10, in clause 5(1) (a) of Schedule 9 of the Hazardous Substances
(Dangerous Goods and Scheduled Toxic Substances) Transfer Notice
March 2004 (“Schedule 9”):
“regulations 39 or 40” is replaced by “regulation 39” and clause 4(3) is omitted.
The Committee also considers that the arrangements regarding the use of existing
underground tanks for E10 should only apply to tanks that were used for petrol or
diesel before 1 April 2004 and that compliance plans, currently permitted under
clause 4 of Schedule 9, are not a satisfactory means of compliance for underground
tanks for the storage of E10.
Accordingly, the Committee considers that clauses 4 and 5 of Schedule 9 should be applied
to E10 as follows:
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4
Existing secondary containment systems
(1)
(2)
(3)
(4)
5
In this Part, existing stationary tank means a stationary tank that
was in use for the storage of petrol or diesel before 1 April 2004.
[no longer relevant]
[no longer relevant]
An existing stationary tank for the storage of E10 must comply
with –
(a)
regulation 39 of the Hazardous Substances (Emergency
Management) Regulations 2001, if that regulation applies;
or
(b)
regulation 40 of the Hazardous Substances (Emergency
Management) Regulations 2001, if that regulation applies;
or
(c)
if regulation 39 applies, a compliance plan; or
(d)
a code of practice approved by the Authority under
section 79 of the Act for the purposes of this clause.
Compliance Plans
(1)
(2)
A person may apply to the Authority for approval of a
compliance plan in relation to an existing above ground
stationary tank for the storage of E10 setting out –
(a) a programme for bringing the secondary containment
system into compliance with regulation 39 of the
Hazardous Substances (Emergency Management)
Regulations 2001, including the provisions of clause 1 of
Schedule 9; or
(b) variations to the requirements of regulation 39,
compliance with which is deemed to be compliance with
that regulation; or
(c) both.
On receiving an application under subclause (1) the Authority
must(a) approve the compliance plan; or
(b) decline to approve it.
The Committee also considers that a new clause 5A should be added to Schedule 9 as it
applies to E10 as follows:
5A
Code of Practice for existing underground tanks
For the purposes of amended clause 4 of Schedule 9, and notwithstanding
the preface and the introduction to the Approved HSNO Code of
Practice (HSNOCOP 13-1), the Code of Practice for the management of existing
stationary container systems up to 60,000 litres capacity applies to E10 being
stored in tanks that were in use for the storage of petrol before 1 April
2004, with the following variations:
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(a)
(b)
Notwithstanding section 8.4 of the Code of Practice for the management
of existing stationary container systems up to 60,000 litres capacity, existing
below-ground tanks without secondary containment for the
storage of E10 that are installed in Zone B must either:
(i)
have undertaken a successful tank integrity test within 12
months prior to or within 6 months after the date of
changeover to the storage of E10; or
(ii)
have a demonstrated record of not less than two years
duration of successful stock reconciliation, prior to the
date of changeover to the storage of E10.
Thereafter, the provisions of section 8.4 of the Code apply to
these tanks as written.
Notwithstanding sections 2.11 and 9 of the Code of Practice for the
management of existing stationary container systems up to 60,000 litres
capacity, existing below-ground tanks for the storage of E10 with a
capacity of not greater than 5000 litres and without a form of
secondary containment, shall be required to have a stationary
container test certificate, the duration of which shall be 10 years.
6 Decision
6.1
The Committee determines that:
6.1.1
the application meets the criteria for consideration under section 63A.
6.1.2
having considered all the effects associated with the reassessment proposal
and best international practices and standards for the safe management of
hazardous substances, that the controls on E10 should be varied as set out
in paragraphs 5.5 to 5.8 (inclusive) so at to allow storage of the substance
in below ground tanks without secondary containment under certain
conditions.
6.1.3
the controls listed in Appendix 1 shall apply to E10.
6.2
In accordance with clause 36(2)(b), the Committee records that, in reaching this
conclusion, it has taken into account the criteria of section 63(6).
6.3
It has also applied the following criteria in the Methodology:
 clause 9 – equivalent of sections 5, 6 and 8;
 clause 11 – characteristics of substance;
 clause 12 – evaluation of assessment of risks;
 clause 13 – evaluation of assessment of costs and benefits;
 clause 14 – costs and benefits accruing to New Zealand
 clause 21 – the decision accords with the requirements and regulations;
 clause 22 – the evaluation of risks, costs and benefits – relevant
considerations;
 clause 24 – the use of recognised risk identification, assessment, evaluation
and management techniques;
 clause 25 – the evaluation of risks;
 clause 33 – risk characteristics;
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

clause 34 – the aggregation and comparison of risks, costs and benefits; and
clause 35 – the costs and benefits of varying the default controls.
Professor George Clark
Chair
ERMA New Zealand Approval Code:
Date 9 May 2007
HRE000001
ERMA New Zealand Decision: Application HRE06001
Petrol-ethanol blends
containing 1% to 10%
ethanol by volume
Page 14 of 36
APPENDIX 1: CONTROLS FOR PETROL-ETHANOL
BLENDS CONTAINING 1% TO 10% ETHANOL BY
VOLUME
Note: The control explanations as listed below have been provided as guidance only and do not have legal standing.
Please refer to the regulations for the requirements prescribed for each control and the modifications listed set out in
section 4 of this document.
Control
Code3
Regulation4
Explanation5
Hazardous Substances (Classes 1 to 5 Control Regulations) Regulations 2001 - Flammable Property
Controls
F1
Regulation 7
General test certification requirements for all class 1 to 5 substances
F2, T7,
E8
F3
Regulation 8
(classes 1-5)
Regulation 10
(classes 6-9)
Regulation 55
Where a test certificate is required for a hazardous substance location where
flammable substances are held, that test certificate must be issued by an
approved test certifier and must typically be renewed yearly. However, the
Authority can, on request by the persons required to obtain the test
certificate, extend the time period to 3 years.
General public transportation restrictions and requirements for all
class 1 to 5 substances
E10 is not permitted to be carried on passenger service vehicles.
General limits on flammable substances
Regulation 55 applies to E10 as if E10 is subject to the tracking provisions of
the Hazardous Substances (Tracking) Regulations 2001.
This regulation applies to E10 as if the item in table 4 in Schedule 3 to the
regulations relating to classification 3.1A were omitted and substituted with
the following:
3.1A 50 L (quantity beyond which controls apply for closed containers)
50 L (quantity beyond which controls apply when use occurring in open
containers).
Therefore:
Where E10 is present at a place for longer than 2 hours, and in a
quantity that exceeds 50 L it must be held at a hazardous substance
location or transit depot, as appropriate.
F4
Regulation 56
Certain flammable substances to be under the control of an approved
handler
3
Note: The numbering system used in this column relates to the coding system used in the ERMA New
Zealand Controls Matrix. This links the hazard classification categories to the regulatory controls triggered
by each category. It is available from ERMA New Zealand and is also contained in the ERMA New Zealand
User Guide to the Controls Regulations.
4
These regulations form the controls applicable to this substance. Refer to the cited regulations for the
formal specification, and for definitions and exemptions. The accompanying explanation is intended for
guidance only.
5
These explanations are for guidance only. Refer to the cited regulations for the formal specification, and
for definitions and exemptions.
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5
Subclause (1) regulation 56 applies to E10 as if the item in table 2 of
Schedule 3 of the regulations relating to classification 3.1A were omitted and
replaced by the following:
3.1A 100 L
Regulation 56 applies to E10 as if regulation 56(1) is replaced by:
Subject to subclause (2) E10, when present in quantities greater than
100 L, must be under the personal control of an approved handler; or
be able to be secured so that a person cannot gain access to the
substance without tools, keys, or any other device for operating locks.
This regulation applies to E10 as if regulation 56(2) were omitted and the
following substituted:
(2) E10 required to be under the personal control of an approved handler
may be handled by a person who is not an approved handler if—
(a) where the E10 is being handled,—
(i) the person has been trained in the hazards associated with the substance
and its safe use and handling, including steps to be taken in the event of
spillage or other emergency; and
(ii) an approved handler is available to provide assistance, if necessary, to the
person at all times while the substance is being handled by the person; or
(b) at a refuelling outlet—
(i) the person is self service refuelling a vehicle, aircraft or ship with E10; or
(ii) the person is self service filling a container with less than 250 litres of
E10; and
(iii) an approved handler is available to provide assistance, if necessary, to the
person at all times while the substance is being handled by the person.
F5
Regulations 5859
It should be noted that any person handling any quantity of a class 3.1
substance under any of regulations 61, 63(4), 65, 67 and 69 must be an
approved handler for that substance, i.e. the trigger quantities that typically
activate approved handler requirements do not apply [Regulation 60(2)].
Requirements regarding hazardous atmosphere zones for flammable
liquids (3.1)
There is a requirement to establish a hazardous atmosphere zone wherever
E10 is present in quantities greater than:




100 L (closed)
25 L (filling)
5 L (open occasionally)
1 L (if in open container for continuous use)
The zone must comply with either of the standards as listed in regulation
58(a) and (b) or an ERMA approved code of practice.
There are a number of requirements that must be met regarding hazardous
atmosphere zones, including:
 any controls placed on electrical systems or electrical equipment
within a hazardous atmosphere zone must be consistent with any
controls on electrical systems or electrical equipment set under other
legislation that are relevant to that specific location. This is to
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5

F6
Regulations 6070
ensure that any potential ignition sources from electrical system or
electrical equipment are protected or insulated to an extent that is
consistent with the degree of hazard (Regulation 59)
test certification requirements (Regulation 81).
Requirements to prevent unintended ignition of flammable liquids
(3.1)
These regulations prescribe controls to reduce the likelihood of unintended
ignition of flammable gases, aerosols and liquids. Controls are prescribed
with the aim of covering all foreseeable circumstances in which unintended
ignition could take place, and include:
 placing limits on the proportion of flammable vapour to air to
ensure that the proportion of flammable vapour to air will always be
sufficiently outside the flammable range, so that ignition cannot take
place, and
 ensuring that there is insufficient energy available for ignition. This
energy could be in the form of either temperature or ignition energy
(e.g. a spark). Accordingly, the controls provide two approaches to
ensure that there is insufficient energy for ignition:
(1) keeping the temperature of the substance, or the temperature of any
surface in contact with the substance, below 80% of the auto-ignition
temperature of the substance, and
(2) keeping sources of ignition below the minimum ignition energy, either by
removal of the ignition source from any location where flammable
substances are handled, or by protecting the “general” mass of flammable
material from the ignition source, e.g. by enclosing any ignition sources in an
enclosure that will not allow the propagation of the flame to the outside; or
using flameproof motors especially designed to prevent ignition energy
escaping.
It should be noted that any person handling any quantity of a class 3.1
substance under any of regulations 61, 63(4), 65, 67 and 69 must be an
approved handler for that substance, i.e. the trigger quantities that typically
activate approved handler requirements do not apply (Regulation 60(2)).
Subclauses (3), (4), and (5) of Regulation 61 do not apply to a vehicle, aircraft
or ship at the dispensing unit of a refuelling outlet if, when E10 is being
delivered to the fuel tank of the
vehicle, aircraft or ship —
(1) the engine of the vehicle, aircraft or ship is turned off; and
(2) no source of ignition is brought within 3 metres of the fuel tank of the
vehicle, aircraft or ship.
Regulation 61 applies as if there were added, after subclause (6) the following
subclauses:
(7) Any aircraft that is being refuelled must comply with the Civil Aviation
Rules.
F11
Regulation 76
It is noted that the Hazardous Substances (Classes 1 to 5 Controls) Regulations do not
apply to this substance once it is contained within the fuel system of a vehicle (refer
regulation 9).
Segregation of incompatible substances
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5
In order to reduce the likelihood of unintended ignition of flammable
substances, there is a requirement to ensure that the substance does not
come into contact with any incompatible substance or material.
F12
Regulations 7778
Classes incompatible with E10 are classes 1, 2, 3.2, 4, 5
General requirement for hazardous substance locations for flammable
substances
Regulation 77 applies to E10 as if E10 is subject to the tracking provisions of
the Hazardous Substances (Tracking) Regulations 2001.
Regulation 77 applies to E10 as if the item in table 4 in Schedule 3 to the
regulations relating to classification 3.1A were omitted and substituted with
the following:
3.1A 50 L (quantity beyond which controls apply for closed containers)
50 L (quantity beyond which controls apply when use occurring in
open containers).
Therefore:
The person in charge of a place where E10 is located must establish in
that place 1 or more hazardous substance locations where E10 is to be
situated if E10 is present - (a) in a quantity exceeding 50 L; and (b) for
a period exceeding 2 hours.
Within such locations, there is a requirement for the person in charge to:
 notify the responsible enforcement authority of the locality and
capacity of the hazardous substance location
 where relevant, ensure that the substances will be under the control
of an approved handler and that any container/building used to hold
the substances is secured
 ensure that any test certification requirements are met
 ensure that a site plan is available for inspection
 where required, establish and manage a hazardous atmosphere zone
A number of controls are prescribed for hazardous substance locations in
order to reduce the likelihood of unintended ignition of class 3 substances
(Regulation 78), including:
 requirements for fire resistant walls (240/240/240 minutes) and
separation distances (greater than 3 m) to isolate any ignition sources
 safety requirements for electrical equipment (construction, design,
earthing)
 requirements for segregation of incompatible substances
F14
Regulation 81
(See also F3 and F16)
Test certification requirements for facilities where class 3.1 substances
are present
There is a test certification requirement when E10 is present at any
hazardous substance location, hazardous atmosphere zone or transit depot
when in quantities above 50 L.
That test certificate must be issued by an approved test certifier and must
demonstrate compliance with a number of specified controls, including:
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5









notification to relevant enforcement officer of hazardous substance
location
approved handler requirements
security requirements
hazardous atmosphere zone requirements, including controls on
electrical systems and electrical equipment
segregation of incompatible substances
signage requirements
emergency management requirements
fire-fighting equipment
secondary containment
This regulation does not apply to a person in charge of a hazardous
substance location that is a farm of not less than 4 hectares, where
E10, petrol, aviation gasoline, racing gasoline or kerosene (“the fuel”) is
stored in total quantities of less than 2,000 litres, if—
(a) the fuel—
(i) is stored in one or more secure containers, each individual container with
a capacity of less than 250
litres; and
(ii) the container or containers comply with regulation 11 and Schedule 2 or
Schedule 3 (as appropriate) of the Hazardous Substances (Packaging)
Regulations 2001; and
(iii) is situated at a distance not less than 15 metres from any area of high
intensity land use or area of regular
habitation; and
(iv) is situated either in the open or in a well ventilated building; and
(v) is in a compound or located so that any spillage of the fuel will not
endanger any building, or flow into any stream, lake or natural water; or
(b) the fuel is—
(i) stored in an above ground stationary tank that—
(1) complies with the Stationary Container Controls in Schedule 8 of the
Hazardous Substances (Dangerous Goods and Scheduled Toxic Substances)
Transfer Notice 2004; and
(2) is situated—
(A) not less than 20 metres from any area of high-intensity land use or area
of regular habitation; and
(B) 6 metres from any combustible materials; and
(ii) is in a compound or located so that any spillage of the fuel will not
endanger any building, or flow into any stream, lake or natural water.
This regulation does not apply to a person in charge of a hazardous
substance location where E10, petrol, aviation gasoline, racing gasoline or
kerosene (“the fuel”) is stored in total quantities of less than 2,000 litres, and
the proposed or actual duration of the storage is for a continuous period of
less than 14 days, if the fuel –
(a) is stored in one or more secure containers, each individual
container with a capacity of less than 250 litres; and
(b) the container or containers comply with regulation 11 and
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5
Schedule 2 or Schedule 3 (as appropriate) of the Hazardous
Substances (Packaging) Regulations 2001; and
(c) is situated at a distance not less than 15 metres from any area of
high intensity land use or area of regular habitation; and
(d) is situated either in the open or in a well ventilated building; and
(e) is in a compound or located so that any spillage of the fuel will
not endanger any building, or flow into any stream, lake or
natural water.
Regulation 81 applies to E10 as if, at the end of paragraph (g), the expression
“.” was omitted and substituted with the following:
; and
and the following new subclause was inserted:
F16
Regulation 83
(h) the requirements of Schedule 10 (Controls relating to the adverse effects
of unintended ignition of class 2 and class 3.1 hazardous substances) of the
Hazardous Substances (Dangerous Goods and Scheduled Toxic Substances)
Transfer Notice 2004 are complied with.
Controls on transit depots where flammable substances are present
This regulation applies to E10 as if the E10 is subject to the tracking
provisions of the Hazardous Substances (Tracking) Regulations 2001.
This regulation applies to E10 as if the item in table 4 in Schedule 3 to the
regulations relating to classification 3.1A were omitted and substituted with
the following:
3.1A 50 L (quantity beyond which controls apply for closed containers)
50 L (quantity beyond which controls apply when use occurring in
open containers).
Transit depots are places designed to hold more than 50 L of E10 for a
period of up to 3 days, but for periods that are more than 2 hours.
Whenever E10 is held at a transit depot in quantities exceeding 50 L, there is
a requirement for the person in charge to:
 notify the responsible enforcement authority of the locality and
capacity of the hazardous substance location
 where relevant, ensure that the substances will be under the control
of an approved handler
 ensure that any road vehicle loaded with containers of class 3
substances is within specified distances of other vehicles or places
containing hazardous substances
 ensure that containers of class 3 substances held in the depot (but
not loaded onto a vehicle) are within specified distances from
vehicles or other containers
 ensure that all class 3 substances remain in their containers and the
containers remain closed
 ensure the safety of any electrical equipment
 comply with any signage requirements
 comply with relevant parts of other Acts and Regulations, e.g.
Electricity Act 1992, HSE (Mining Underground Regulations) 1999
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5
or Civil Aviation Rules
(See also F3 and F12)
Hazardous Substances (Classes 6, 8 and 9 Controls) Regulations 2001 – Toxic Property Controls
T1
Regulations 11- Limiting exposure to toxic substances
27
This control relates to limiting public exposure to toxic substances through
the setting of tolerable exposure limits (TELs). A TEL represents the
maximum allowable concentration of a substance legally allowable in a
particular environmental medium. TEL values are established by the
Authority and are enforceable controls under the HSNO Act. TELs are
derived from potential daily exposure (PDE) values, which in turn are
derived from acceptable daily exposure (ADE)/reference dose (RfD) values.
An ADE / RfD value must be set for a toxic substance if:
 It is likely to be present in an environmental medium (air, water, soil
or a surface that the substance may be deposited onto) or food or
other matter that might be ingested
 It is a substance to which people are likely to be exposed to during
their lifetime, and;
 Exposure is likely to result in an appreciable toxic effect
If an ADE / RfD value is set for a substance, a PDE for each exposure
route must also be set for the substance. The PDE is a measure of the
relative likelihood of a person actually being exposed to the substance
through a particular exposure route given daily living patterns.
The following TELs are set for E10:
Benzene
TELAIR
= 10 µg/m3
TELWATER = 10 µg/L
Toluene
TELAIR
= 400 µg/m3
TELWATER = 800 µg/L
T2
Regulations 29,
30
Xylene
TELAIR
= 870 µg/m3
TELWATER = 600 µg/L
Controlling exposure in places of work
A workplace exposure standard (WES) is designed to protect persons in the
workplace from the adverse effects of toxic substances. A WES is an
airborne concentration of a substance (expressed as mg substance/m3 of air
or ppm in air), which must not be exceeded in a workplace and only apply to
places of work that the public does not have access to.
The following WESs are set for E10:
Benzene
Ethyl benzene
ERMA New Zealand Decision: Application HRE06001
5 ppm (16 mg/m3) (TWA)
100 ppm (434 mg/m3) (TWA)
Page 21 of 36
Control
Code3
Regulation4
Explanation5
125 ppm (543 mg/m3) (STEL)
Toluene
50 ppm (188 mg/m3) (TWA)
Xylene (o-,m-, p-isomers) 50 ppm (217 mg/m3) (TWA)
T4, E6
Regulation 7
Requirements for equipment used to handle substances
Any equipment used to handle toxic substances must retain and/or dispense
the substance in the manner intended, i.e. without leakage, and must be
accompanied by sufficient information so that this can be achieved.
Hazardous Substances (Classes 6, 8 and 9 Controls) Regulations 2001 – Ecotoxic Property Controls
E1
Regulations
Limiting exposure to ecotoxic substances
32 – 45
This control relates to the setting of environmental exposure limits (EELs).
An EEL establishes the maximum concentration of an ecotoxic substance
legally allowable in a particular (non target) environmental medium (e.g. soil
or sediment or water), including deposition of a substance onto surfaces (e.g.
as in spray drift deposition).
An EEL can be established by one of three means:
 Applying the default EELs specified
 Adopting an established EEL
 Calculating an EEL from an assessment of available ecotoxicological
data
The following EELs are set for E10:
Benzene
2000 µg/L (ANZECC 80% level of protection)
Toluene
330 µg/L (ANZECC 80% level of protection)
o-Xylene
640 µg/L (ANZECC 80% level of protection)
m/p-Xylene 340 µg/L (ANZECC 80% level of protection)
Hazardous Substances (Identification) Regulations 2001
I1
Regulations 6, 7, General identification requirements
32-35, 36 (1)-(7)
These controls relate to the duties of suppliers and persons in charge of
hazardous substances with respect to identification (essentially labelling)
(regulations 6 and 7), accessibility of the required information (regulations 32
and 33) and presentation of the required information with respect to
comprehensibility, clarity and durability (regulations 34, 35, 36(1)-(7)).
Regulation 6 – Identification duties of suppliers
Suppliers of any hazardous substance must ensure it is labelled with all
relevant priority identifier information (as required by regulations 8 – 17) and
secondary identifier information (as required by regulations 18 – 30) before
supplying it to any other person. This includes ensuring that the priority
identifier information is available to any person handling the substance
within 2 seconds (regulation 32), and the secondary identifier information
available within 10 seconds (regulation 33).
Suppliers must also ensure that no information is supplied with the substance
(or its packaging) that suggests it belongs to a class that it does not in fact
belong to.
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5
Regulation 7 – Identification duties of persons in charge
Persons in charge of any hazardous substance must ensure it is labelled with
all relevant priority identifier information (as required by regulations 8 – 17)
and secondary identifier information (as required by regulations 18 – 30)
before supplying it to any other person. This includes ensuring that the
priority identifier information is available to any person handling the
substance within 2 seconds (regulation 32), and the secondary identifier
information available within 10 seconds (regulation 33).
Persons in charge must also ensure that no information is supplied with the
substance (or its packaging) that suggests it belongs to a class that it does not
in fact belong to.
Regulations 32 and 33 – Accessibility of information
All priority identifier Information (as required by regulations 8 – 17) must be
available within 2 seconds, e.g. on the label.
All secondary identifier Information (as required by regulations 18 – 30)
must be available within 10 seconds, e.g. on the label, on a package insert,
etc.
I3, I5, I8
Regulations 9,
11 and 14
Regulations 34, 35, 36(1)-(7) – Comprehensibility, Clarity and Durability of
information
All required priority and secondary identifiers must be presented in a way
that meets the performance standards in these regulations. In summary:
 any information provided (either written and oral) must be readily
understandable and in English
 any information provided in written or pictorial form must be able
to be easily read or perceived by a person with average eyesight
under normal lighting conditions
 any information provided in an audible form must be able to be
easily heard by a person with average hearing
 any information provided must be in a durable format i.e. the
information requirements with respect to clarity must be able to be
met throughout the lifetime of the (packaged) substance under the
normal conditions of storage, handling and use.
Priority identifiers for E10
This requirement specifies that E10 must be prominently identified as being
ecotoxic, flammable and toxic.
In addition, the following information must be provided:
 an indication the substance is a liquid
 if a flammable liquid, information must be provided on its general
degree of hazard (e.g. highly flammable)
 the general degree and type of hazard of the substance (for E10, this
could be ‘Harmful if swallowed/inhaled/by skin contact’), and the
need to restrict access to the substance by children.
This information must be available to any person handling the substance
within 2 seconds (regulation 32) and can be provided by way of signal
headings or commonly understood pictograms on the label..
I9
Regulation 18
Secondary identifiers for all hazardous substances
This control relates to detail required for hazardous substances on the
product label. This information must be accessible within 10 seconds
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
I11, I13,
I16
I18
Regulation4
Regulations 20,
22 and 25
Regulation 27
Explanation5
(regulation 33) and could be provided on secondary panels on the product
label, on a package insert, etc. The following information is required:
 an indication (which may include its common name, chemical name,
or registered trade name) that unequivocally identifies it, and
 enough information to enable its New Zealand importer, supplier,
or manufacturer to be contacted, either in person or by telephone,
and
 if E10, when in a closed container, is likely to become more
hazardous over time or develop additional hazardous properties, or
become a hazardous substance of a different class, a description of
each likely change and the date by which it is likely to occur.
Secondary identifiers for E10
This control relates to the additional label detail required for E10 substances.
This information must be accessible within 10 seconds (regulation. 33) and
could be provided on secondary panels on the product label, on a package
insert, etc. The following information must be provided:
 an indication of the circumstances in which it may harm living
organisms
 an indication of the kind and extent of the harm it is likely to cause
to living organisms
 an indication of the steps to be taken to prevent harm to living
organisms
 in the case of an ecotoxic substance of classification 9.1B, an
indication of its general type and degree of hazard (e.g. for E10
‘ecotoxic to aquatic life’)
 an indication of its general type and degree of flammable hazard (e.g.
highly flammable liquid)
 an indication of the circumstances in which it may be ignited
unintentionally
 an indication of the likely effect of an unintentional ignition
 an indication of the steps to be taken to prevent an unintentional
ignition
 an indication of its general type and degree of toxic hazards (e.g.
mild skin irritant, eye irritant, etc)
 an indication of the circumstances in which it may harm human
beings
 an indication of the kinds of harm it may cause to human beings,
and the likely extent of each kind of harm
 an indication of the steps to be taken to prevent harm to human
beings
 the name of any ingredient that would, independently of any other
ingredient, cause the substance to be classified in subclass 6.7. In
addition, the concentration of the ingredient that would contribute
the most to that classification must be provided.
In the case of E10, the classification 6.7B is driven by the benzene
content of the petrol component. Therefore, benzene and its
concentration should be identified.
Requirements for using concentration ranges
This control provides the option of providing concentration ranges for those
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Control
Code3
Regulation4
Explanation5
ingredients whose concentrations are required to be stated on the product
label as specified by regulations 19(f), 25(e) and 25(f).
[Regulations 19(f) and 25 (e) and (f) specify a requirement to list on the
product label, the name and concentration of any ingredient that would
independently of any other ingredient, cause the substance to be classified as
class 6.7].
I19
Regulations
29 – 31
This requirement allows the option of specifying (in the case of E10)
the benzene concentration as a range, e.g. less than 4% by volume.
Alternative information in certain cases
Regulation 29 – Substances in fixed bulk containers or bulk transport
containers
This regulation relates to alternative ways of presenting the priority and
secondary identifier information required by regulations 8 – 25 when
substances are contained in fixed bulk containers or bulk transport
containers.
Regulation 29 (1) specifies that for fixed bulk containers, it is sufficient
compliance if there is available at all times to people near the container,
information that identifies the type and general degree of hazard of the
substance. When class 1,2,3,4 or 5 substances are contained, there is an
additional requirement that information must be provided describing any
steps to be taken to prevent an unintentional explosion, ignition combustion,
acceleration of fire or thermal decomposition.
Regulation 29 (2) specifies that for bulk transport containers, it is sufficient
compliance if the substance is labelled or marked in compliance with the
requirements of either the Land Transport Rule 45001, Civil Aviation Act
1990 or Maritime Transport Act 1994.
Regulation 30 – Substances in multiple packaging
This regulation relates to situations when hazardous substances are in
multiple packaging and the outer packaging obscures some or all of the
required substance information. In such cases, the outer packaging must:
 be clearly labelled with all relevant priority identifier information i.e.
the hazardous properties of the substance must be identified, or
 be labelled or marked in compliance with either the Land Transport
Rule 45001, Civil Aviation Act 1990 or the Maritime Safety Act 1994
as relevant, or
 in the case of an ecotoxic substance, it must bear the EU pictogram
“Dangerous to the Environment” (‘dead fish and tree’ on orange
background), or
 bear the relevant class label assigned by the UN Model Regulations
I21
Regulations
37–39, 47–50
Regulation 31 – Alternative information when substances are imported
This regulation relates to alternative information requirements for hazardous
substances that are imported into New Zealand in a closed package or in a
freight container and will be transported to their destination without being
removed from that package or container. In these situations, it is sufficient
compliance with HSNO if the package or container is labelled or marked in
compliance with the requirements of the Land Transport Rule 45001.
Documentation required in places of work
These controls relate to the duties of suppliers and persons in charge of
ERMA New Zealand Decision: Application HRE06001
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Control
Code3
Regulation4
Explanation5
places of work with respect to provision of documentation (essentially
Material Safety Data Sheets) (regulations 37, 38 and 50); the general content
requirements of the documentation (regulation 39 and 47); the accessibility
and presentation of the required documentation with respect to
comprehensibility and clarity (regulation 48).
These controls are triggered when substances of specific hazard
classifications are held in the workplace in quantities equal to or greater than
the levels as specified in Schedule 2 of the Identification Regulations. Where
a substance triggers more than one hazard classification, the most stringent
quantity generally applies.
Regulation 37 – Documentation duties of suppliers
A supplier must provide documentation containing all relevant information
required by regulations 39 – 46 when selling or supplying to another person a
quantity of a hazardous substance equal to or greater than the levels specified
in Schedule 2 for that classification, if the substance is to be used in a place
of work and the supplier has not previously provided the documentation to
that person.
Regulation 38 – Documentation duties of persons in charge of places of
work
The person in charge of any place of work where hazardous substances are
present in quantities equal to or greater than those specified in regulation 38
(and with reference to Schedule 2 of the Identification Regulations), must
ensure that every person handling the substance has access to the
documentation containing all relevant information required by regulations 39
– 46. The person in charge must also ensure that the documentation does
not contain any information that suggests that the substance belongs to a
hazard classification it does not in fact belong to.
Regulation 39 – General content requirements for documentation
The documentation provided with a hazardous substance must include the
following information:
 the unequivocal identity of the substance (e.g. the CAS number,
chemical name, common name, UN number, registered trade
name(s))
 a description of the physical state, colour and odour of the substance
 if the substance’s physical state may alter over the expected range of
workplace temperatures, the documentation must include a
description of the temperatures at which the changes in physical
state may occur and the nature of those changes.
 in the case of a substance that, when in a closed container, is likely
to become more hazardous over time or develop additional
hazardous properties, or become a hazardous substance of a
different class, the documentation must include a description of each
likely change and the date by which it is likely to occur
 contact details for the New Zealand supplier / manufacturer /
importer
 all emergency management and disposal information required for
the substance
 the date on which the documentation was prepared
 the name and concentration of any ingredients that would
independently of any other ingredient, cause the substance to be
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Control
Code3
Regulation4
Explanation5
classified as class 6.7 (see comments under I16).
Regulation 47 – Information not included in approval
This regulation relates to the provision of specific documentation
information (e.g. as provided on an MSDS). If information required by
regulations 39 to 46 was not included in the information used for the
approval of the substance by the Authority, it is sufficient compliance with
those regulations if reference is made to that information requirement along
with a comment indicating that such information is not applicable to that
substance.
Regulation 48 – Location and presentation requirements for documentation
All required documentation must be available to a person handling the
substance in a place of work within 10 minutes. The documentation must be
readily understandable by any fully-trained worker required to have access to
it and must be easily read, under normal lighting conditions, at a distance of
not less than 0.3m.
Regulation 49 – Documentation requirements for vehicles
This regulation provides for the option of complying with documentation
requirements as specified in the various Land, Sea and Air transport rules
when the substance is being transported.
Regulation 50 – Documentation to be supplied on request
Notwithstanding regulation 37 above, a supplier must provide the required
documentation to any person in charge of a place of work (where a
hazardous substance is present) if asked to do so by that person.
The trigger level for E10 is 5 litres.
I23, I25,
I28
Regulations 41,
43 and 46,
Specific documentation requirements for E10
The documentation provided with E10 must include the following
information:
 its general degree and type of ecotoxic hazard (e.g. highly ecotoxic to
terrestrial vertebrates)
 a full description of the circumstances in which it may harm living
organisms and the extent of that harm
 a full description of the steps to be taken to prevent harm to living
organisms
 a summary of the available acute and chronic (ecotox) data used to
define the (ecotox) subclass or subclasses in which it is classified
 its bio-concentration factor or octanol-water partition coefficient
 its expected soil or water degradation rate
 any EELs set by the Authority
 its general degree and type of flammable hazard
 a full description of the circumstances in which it may be ignited
unintentionally
 the likely effect of an unintentional ignition
 a full description of the steps to be taken to prevent an unintentional
ignition
 its lower and upper explosive limits, expressed as volume
percentages in air or its flash point (and flash point methodology)
and auto-ignition temperature
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Control
Code3
Regulation4
Explanation5









I29
Regulations
51 – 52
its general degree and type of toxic hazard
a full description of the circumstances in which it may harm human
beings
the kinds of harm it may cause to human beings
a full description of the steps to be taken to prevent harm to human
beings
the percentage of volatile substance in the liquid formulation, and
the temperature at which the percentages were measured
a summary of the available acute and chronic (toxic) data used to
define the (toxic) subclass or subclasses in which it is classified
the symptoms or signs of injury or ill health associated with each
likely route of exposure
the dose, concentration, or conditions of exposure likely to cause
injury or ill health
any TELs or WESs set by the Authority.
Duties of persons in charge of places with respect to signage
The person in charge of a place where the quantities of E10 exceeds 250 L
must ensure that the following signage is provided:
If E10 is located in a building (but not in a particular room or compartment
within it), there must be positioned at every vehicular and pedestrian access
to the building, and every vehicular and pedestrian access to land where the
building is located, signage – (a) stating that a hazardous substance is present;
and (b) stating the general type of hazard
Subclause (1) of regulation 52 applies to any place where no more
than 2,000 litres of E10, petrol, aviation gasoline or racing gasoline is located
for use on a farm (being a farm of not less than 4 hectares in area) as if the
words “, and every vehicular and pedestrian access to land where the building
is located,” were omitted.
Hazardous Substances (Packaging) Regulations 2001
P1
Regulations 5, 6, General packaging requirements
7 (1), 8
These controls relate to the ability of the packaging to retain its contents,
allowable packaging markings with respect to design approvals, factors
affecting choice of suitable packaging, and compatibility of the substance
with any previous contents of the packaging.
Regulation 5 – Ability to retain contents
Packaging for all hazardous substances must ensure that, when the package is
closed, there is no visible release of the substance, and that it maintains its
ability to retain its contents in temperatures from –10oC to +50oC. The
packaging must also maintain its ability to retain its remaining contents if
part of the contents is removed from the package and the packaging is then
re-closed. The packaging in direct contact with the substance must not be
significantly affected or weakened by contact with the substance such that
the foregoing requirements cannot be met.
Regulation 6 – Packaging markings
Packages containing hazardous substances must not be marked in
accordance with the UN Model Regulations unless
 the markings comply with the relevant provisions of that document,
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Control
Code3
Regulation4
Explanation5
and
the packaging complies with the tests set out in Schedule 1, 2 or 3
(Packaging Regulations) respectively, and
 the design of the packaging has been test certified as complying with
those tests.
Regulation 7(1) – Requirements when packing hazardous substance
When packing any hazardous substance, account must be taken of its
physical state and properties, and packaging must be selected that complies
with the requirements of regulation 5, and regulations 9 – 21.

Regulation 8 – Compatibility
Hazardous substances must not be packed in packaging that has been
previously packed with substances with which it is incompatible.
P3, P5,
P13, P15
Regulations 9,
11, 19 and 21
Packaging requirements for substances packed in limited quantities
Regulation 11 applies to E10 as if E10 has a hazard classification of 3.1B.
E10 may be packaged to a performance standard according to
Schedule 4, in units of packaging not exceeding 1 L.
E10 must be packaged to a performance standard according to
Schedule 2 (i.e. PG2) when in quantities exceeding 1 L
The packaging for portable containers of E10 that have a capacity of 25 L or
less shall comply with the requirements of:
(a) AS/NZS 2906:2001 (Fuel Containers – Portable – Plastics
and Metal); or
(b) ASTM F-852-99e1 (Standard Specification for Portable Gasoline
Containers for Consumer Use); or
(c) a code of practice approved by the Authority under section 79 of the Act
that specifies requirements equivalent to the requirements specified in
paragraph (a) or paragraph (b); or
(d) an approval issued by the Authority or the Chief Inspector of Dangerous
Goods under regulation 3 of the Dangerous Goods (Class 3 – Flammable
Liquids) Regulations 1985 prior to 1 April 2004.
PG2
Schedule 2
PS4
Schedule 4
This schedule provides the test methods for packaging required to be tested
in accordance with this schedule. The tests in Schedule 2 correlate to the
packaging requirements of UN Packing Group II (UNPGII).
This schedule describes the minimum packaging requirements that must be
complied with for E10 when packaged in quantities equal to or less than 1 L.
Hazardous Substances (Disposal) Regulations 2001
D2, D4, Regulations 6, 8 Disposal requirements for E10
D5
and 9
E10 must be disposed of by:
 treating the substance so that it is no longer a hazardous substance.
 Treatment does not dilution of the substance with any other
substance prior to discharge to the environment nor include
depositing the substance in a landfill or sewage facility but can
include controlled burning providing that the performance
requirements as set out in regulation 6(3)(b) of the Disposal
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Control
Code3
D6
D7
Regulation4
Explanation5
Regulation 10
Regulations for protecting people and the environment are met, or
 exporting the substance from New Zealand as a hazardous waste.
There is provision for E10 to be discharged into the environment as waste or
deposited in a landfill, provided the discharge location is managed so that:
 the substance will not at any time come into contact with any
substances with explosive or oxidising properties, and
 there is no ignition source in the vicinity of the disposal site, and
 in the event of an accidental fire, harm to people or the environment
does not occur – the performance requirements for this are set out
in regulation 6(3)(b) of the Disposal Regulations;
 after reasonable mixing, the concentration of the substance in any
part of the environment outside the mixing zone does not exceed
any TEL (tolerable exposure limit) set by the Authority for that
substance, or
 after reasonable mixing, the concentration of the substance in any
part of the environment outside the mixing zone does not exceed
any EEL (environmental exposure limit) set by the Authority for
that substance.
Disposal requirements for packages
Regulations 11,
12
This control gives the disposal requirements for packages that contained a
hazardous substance and are no longer to be used for that purpose. Such
packages must be either decontaminated/treated, or rendered incapable of
containing any substance (hazardous or otherwise) and then disposed of in a
manner that is consistent with the disposal requirements for the substance.
In addition, the manner of disposal must take into account the material that
the package is manufactured from.
Information requirements
These controls relate to the provision of information concerning disposal
(essentially on the label) that must be provided when selling or supplying a
quantity of a hazardous substance that exceeds the trigger levels as specified
in Schedule 1 of the Disposal Regulations. Where a substance triggers more
than one hazard classification, the most stringent quantity generally applies.
Information must be provided on appropriate methods of disposal and
information may be supplied warning of methods of disposal that should be
avoided i.e. that would not comply with the Disposal Regulations. Such
information must be accessible to a person handling the substance within 10
seconds and must comply with the requirements for comprehensibility,
clarity and durability as described in Regulations 34-36 of the Identification
regulations (code I1).
The trigger quantity for E10 is 1 L.
D8
Regulations 13,
14
Documentation requirements
These controls relate to the provision of documentation concerning disposal
(essentially in a MSDS) that must be provided when selling or supplying a
quantity of a hazardous substance that exceeds the trigger levels as specified
in Schedule 2 of the Disposal Regulations. Where a substance triggers more
than one hazard classification, the most stringent quantity generally applies.
The documentation must describe one or more methods of disposal (that
comply with the Disposal Regulations) and describe any precautions that
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Control
Code3
Regulation4
Explanation5
must be taken. Such documentation must be accessible to a person handling
the substance at a place of work within 10 minutes and must comply with the
requirements for comprehensibility and clarity as described in Regulations
48(2), (3) and (4) of the Identification regulations (code I21).
The trigger quantity for E10 is 5 L.
(see also I21 and EM8)
Hazardous Substances (Emergency Management) Regulations 2001
EM1
Regulations 6, 7, Level 1 emergency management information: General requirements
9 – 11
Regulations 6 & 7 apply to E10 as if the item in Schedule 1 of the regulations
relating to classification 3.1A were omitted and the following substituted:
3.1A 1 L.
These controls relate to the provision of emergency management
information (essentially on the label) that must be provided with E10
when present in quantities equal to or greater than 1 L.
Regulation 6 describes the duties of suppliers, regulation 7 describes the
duties of persons in charge of places, regulation 9 describes the requirement
for the availability of the information (10 seconds) and regulation 10 gives
the requirements relating to the presentation of the information with respect
to comprehensibility, clarity and durability. These requirements correspond
with those relating to secondary identifiers required by the Identification
regulations (code I1, regulations 6, 7, 32 – 35, 36(1) - (7)).
EM4,
EM6,
EM7
Regulations
8(c), (e) and (f)
Regulation 11 provides for the option of complying with the information
requirements of the transport rules when the substance is being transported.
Information requirements for E10 substances
The following information must be provided with E10 when present in
quantities equal to or greater than 1 L.
 A description of the material and equipment needed to put out a fire
involving it
 A description of the usual symptoms of toxic exposure
 A description of the first aid to be given
 A 24-hour emergency service telephone number
 a description of the parts of the environment likely to be
immediately affected by it
 a description of its typical effects on those parts of the environment
 a statement of any immediate actions that may be taken to prevent
the substance from entering or affecting those parts of the
environment.
Emergency management information is strongly recommended to be
included on the labelling of hand-carried containers that may be used
to transport the substance.
EM8
Regulations 12–
16, 18–20
Level 2 emergency management information requirements
These controls relate to the duties of suppliers and persons in charge of
places of work with respect to the provision of emergency management
documentation (essentially Material Safety Data Sheets). This documentation
must be provided where hazardous substances are sold or supplied, or held
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Control
Code3
Regulation4
Explanation5
in a workplace, in quantities equal to or greater than 5 L.
Regulations 12 and 13 describe the duties of suppliers, regulation 14
describes the duties of persons in charge of places of work, regulation 15
provides for the option of complying with documentation requirements of
the transport rules when the substance is being transported, and regulation
16 specifies requirements for general contents of the documentation.
EM9
Regulation 17
Regulation 18 provides accessibility requirements (documentation to be
available within 5 minutes) and regulation 19 provides requirements for
presentation with respect to comprehensibility and clarity. These
requirements correspond with those relating to documentation required by
the Identification Regulations (code I21).
Extra content for flammable substances
There is an additional requirement for flammable substances that a
description be provided of the steps to be taken to control any fire involving
the substance, including the types of extinguishant to be used.
EM10
Regulations
21 – 24
Fire extinguishers
Every place (including vehicles) where flammable substances are held in a
place of work in quantities exceeding those specified in Schedule 3 of the
Emergency Management Regulations, must have the specified number of fire
extinguishers (either one or two as detailed in Schedule 3) (regulation 21).
The intention of these general requirements is to provide sufficient firefighting capacity to stop a fire spreading and reaching hazardous substances,
rather than providing sufficient capacity to extinguish any possible fire
involving large quantities of hazardous substances.
Each fire extinguisher must be located within 30 m of the substance, or, in a
transportation situation, in or on the vehicle (regulation 22). The
performance measure for an extinguisher is that it must be capable of
extinguishing a fully ignited pool of flammable liquid (50 mm deep and at
least 6 m2 in area), before the extinguisher is exhausted, and when used by
one person (regulation 23).
The number of fire extinguishers specified for E10 is 1 for 50 L, and 2
for 200 L.
Regulation 21 applies to an unattended dispensing station where there is
stored E10 for self service refuelling as if the item in Schedule 3 of the
regulations relating to classification 3.1A was omitted.
For unattended dispensing stations where there is stored E10 for self
service refuelling fire extinguishers are not required
EM11
Regulations
25 – 34
Level 3 emergency management requirements – emergency response
plans
These regulations relate to the requirement for an emergency response plan
to be available at any place (excluding aircraft or ships) where E10 is held (or
reasonably likely to be held on occasion) in quantities greater than 1000 L.
The emergency response plan must describe all of the likely emergencies that
may arise from the breach or failure of controls. The type of information
that is required to be included in the plan is specified in regulations 29 – 30.
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Control
Code3
Regulation4
Explanation5
Requirements relating to the availability of equipment, materials and people
are provided in regulation 31, requirements regarding the availability of the
plan are provided in regulation 32 and requirements for testing the plan are
described in regulation 33.
This regulation applies to a place where there is stored:
(a) at a farm of not less than 4 hectares E10, petrol, aviation
gasoline, racing gasoline, kerosene or diesel fuel, stored in total
quantities of less than 2000 L and located so that any spillage
will not endanger any building, or flow into any stream, lake or
natural water: or
(b) E10, petrol, aviation gasoline, racing gasoline, kerosene or
diesel fuel, stored in total quantities of less than 2000 L
contained in a tank wagon or in secure containers, each
individual container with a capacity of less than 250 L, located
so that any spillage will not endanger any building, or flow into
any stream, lake or natural water and where the proposed or
actual duration is for a continuous period of less than 14 days,
EM12
Regulations
35 – 41
as if the item in Schedule 4 of the regulations relating to the classification
3.1A and 9.1B were omitted and the following substituted:
3.1 A and 9.1B
2000 L
Level 3 emergency management requirements – secondary
containment
These regulations relate to the requirement for a secondary containment
system to be installed at any fixed location where liquid (or liquefiable)
hazardous substances are held in quantities equal to or greater than those
specified in Schedule 4 of the Emergency Management Regulations. Where
a substance triggers more than one hazard classification, the most stringent
quantity generally applies.
The trigger level for E10 is 1000 litres.
Regulation 37 prescribes requirements for places where hazardous
substances are held above ground in containers each holding up to 60 L or
less. Regulation 38 prescribes requirements for places where hazardous
substances are held above ground in containers each holding between 60 L
and 450 L. Regulation 39 prescribes requirements for places where
hazardous substances are held above ground in containers each holding more
than 450 L. Regulation 40 prescribes requirements for places where
hazardous substances are held underground. Regulation 41 prescribes
requirements for secondary containment systems that contain substances of
specific hazard classifications, e.g. there is a requirement to prevent
substances from coming into contact with incompatible materials, and a
requirement to exclude energy sources when class 3 substances are
contained.
Regulation 36 applies as if there were added, after subclause (3),
the following subclauses:
(4) For the purposes of this regulation and regulations 37 to 40,
E10 contained in pipework that is installed and operated so as to manage any
loss of containment in the pipework—
(a) is not to be taken into account in determining whether a place is required
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Control
Code3
Regulation4
Explanation5
to have a secondary containment system; and
(b) is not required to be located in a secondary containment system.
(5) In this clause, pipework—
(a) means piping that—
(i) is connected to a stationary container; and
(ii) is used to transfer E10 into or out of the stationary container; and
(b) includes a process pipeline or a transfer line.
EM13
Regulation 42
Level 3 emergency management requirements – signage
These controls relates to the provision of emergency management
information on signage at places where hazardous substances are held at
quantities equal to or greater than the quantities specified in Schedule 5 of
the Emergency Management Regulations.
The signage must advise of the action to be taken in an emergency and must
meet the requirements for comprehensibility and clarity as defined in
regulations 34 and 35 of the Identification Regulations.
The trigger quantity for E10 is 250 L.
Hazardous Substances (Personnel Qualification) Regulations 2001
AH1
Regulations 4 – Approved Handler requirements (including test certificate and
6
qualification requirements)
Some (highly) hazardous substances are required to be under the control of
an approved handler during specified parts of the lifecycle. An approved
handler is a person who holds a current test certificate certifying that they
have met the competency requirements specified by the Personnel
Qualification Regulations in relation to handling specific hazardous
substances.
Regulation 4 describes the test certification requirements, regulation 5
describes the qualification (competency and skill) requirements and regulation
6 describes situations where transitional qualifications for approved handlers
apply.
Hazardous Substances (Tank Wagons and Transportable Containers) Regulations 2004
Regulations 4 to 43 where
The Hazardous Substances (Tank Wagons and Transportable Containers)
applicable
Regulations 2004 prescribe a number of controls relating to tank wagons and
transportable containers and must be complied with as relevant.
Hazardous Substances (Dangerous Goods and Scheduled Toxic Substances) Transfer Notice
March 2004
Schedules 8, 9 and 10
The controls relating to stationary container systems, secondary containment
Hazardous Substances
and unintended ignition of flammable substances, as set out in Schedules 8, 9
(Dangerous Goods and
and 10 of the Hazardous Substances (Dangerous Goods and Scheduled Toxic
Scheduled Toxic
Substances) Transfer Notice 2004 (Supplement to the New Zealand Gazette, 26
Substances) Transfer
March 2004, No. 35, page 767, as amended by Supplements to the New
Notice March 2004
Zealand Gazette, 1 October 2004, No. 128, page 3133, 16 December 2005, No.
208, page 5289, 27 June 2006, No. 70, page 1609 and 30 June 2006, No. 76,
page 2409), shall apply to this substance, notwithstanding clause 1(1) of
Schedules 8 and 9 and clause 1 of Schedule 10.
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Schedule 9, Hazardous
Substances (Dangerous
Goods and Scheduled
Toxic Substances) Transfer
Notice March 2004
Clauses 4 and 5 of Schedule 9 apply to E10 as follows:
4
Existing secondary containment systems
(1)
(2)
(3)
(4)
5
5A
In this Part, existing stationary tank means a stationary tank
that was in use for the storage of petrol or diesel before 1
April 2004.
[no longer relevant]
[no longer relevant]
An existing stationary tank for the storage of E10 must
comply with –
(a)
regulation 39 of the Hazardous Substances
(Emergency Management) Regulations 2001, if that
regulation applies; or
(b)
regulation 40 of the Hazardous Substances
(Emergency Management) Regulations 2001, if that
regulation applies; or
(c)
if regulation 39 applies, a compliance plan; or
(d)
a code of practice approved by the Authority under
section 79 of the Act for the purposes of this clause.
Compliance Plans
(1)
A person may apply to the Authority for approval of a
compliance plan in relation to an existing above ground
stationary tank for the storage of E10 setting out –
(a) a programme for bringing the secondary
containment system into compliance with regulation
39 of the Hazardous Substances (Emergency
Management) Regulations 2001, including the
provisions of clause 1 of Schedule 9; or
(b) variations to the requirements of regulation 39,
compliance with which is deemed to be compliance
with that regulation; or
(c)
both.
(2)
On receiving an application under subclause (1) the
Authority must(a)
approve the compliance plan; or
(b)
decline to approve it.
Code of Practice for existing underground tanks
For the purposes of amended clause 4 of Schedule 9, and
notwithstanding the preface and the introduction to the Approved
HSNO Code of Practice (HSNOCOP 13-1), the Code of Practice for the
management of existing stationary container systems up to 60,000 litres capacity
applies to E10 being stored in tanks that were in use for the storage
of petrol before 1 April 2004, with the following variations:
(a)
Notwithstanding section 8.4 of the Code of Practice for the
management of existing stationary container systems up to 60,000 litres
capacity, existing below-ground tanks without secondary
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containment for the storage of E10 that are installed in Zone
B must either:
(i)
have undertaken a successful tank integrity test
within 12 months prior to or within 6 months after
the date of changeover to the storage of E10; or
(ii)
have a demonstrated record of not less than
two years duration of successful stock
reconciliation, prior to the date of
changeover to the storage of E10.
Thereafter, the provisions of section 8.4 of the Code
apply to these tanks as written.
(b)
Notwithstanding sections 2.11 and 9 of the Code of Practice for
the management of existing stationary container systems up to 60,000
litres capacity, existing below-ground tanks for the storage of
E10 with a capacity of not greater than 5000 litres and
without a form of secondary containment, shall be required
to have a stationary container test certificate, the duration of
which shall be 10 years.
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