ENVIRONMENTAL RISK MANAGEMENT AUTHORITY DECISION 8 October 2007 Application Code HSC07023 Application Type To import or manufacture a hazardous substance in containment under Section 31 of the Hazardous Substances and New Organisms Act 1996 (“the Act”) Applicant Shell New Zealand Limited Purpose of the Application To import or manufacture into containment E85, a petrol and ethanol blend racing fuel for use solely at the Toyota Race Series in New Zealand (other purposes). Date Application Received 30 August 2007 Consideration Date 8 October 2007 Considered by Rob Forlong, Chief Executive of ERMA New Zealand 1 Summary of Decision 1.1 The application to import E85 (Toyota Race Series) is approved with controls in accordance with the relevant provisions of the Act and the HSNO (Methodology) Order 1998 (“the Methodology”). 1.2 The substance has been given the following unique identifier for the ERMA New Zealand Hazardous Substances Register: E85 (Toyota Race Series) 2 Legislative criteria for application 2.1 The application was lodged pursuant to section 31. The decision was determined in accordance with section 32, taking into account additional matters to be considered in that section and matters specified under Part II of the Act and the provisions of Part III of the Third Schedule of the Act. Unless otherwise stated, references to section numbers in this decision refer to sections of the Act. 2.2 Consideration of the application 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 30 August 2007. 3.2 Project Team: Haydn Murdoch Advisor (Hazardous Substances) Linda Faulkner General Manager, Māori Unit Report review and sign-out by: 3.3 Beth Dye Applications Manager (Hazardous Substances) Peter Dawson Principal Scientist (Hazardous Substances). The applicant supplied the following document: 3.4 the application. The following government departments were advised of the receipt of the application (in accordance with clause 2(2)(e)) and given the opportunity to comment: the Ministry of Health; the Department of Labour (Workplace Group). 3.5 No responses were received. 3.6 The applicant was provided with a copy of the proposed controls for E85 (Toyota Race Series) and given the opportunity to comment on them. The comments provided were taken into account in the setting of controls. 4 Consideration Sequence of the consideration 4.1 This application was considered by the Chief Executive of ERMA New Zealand under delegated powers from the Authority (section 19(2)(e)). 4.2 In accordance with section 32, the approach adopted when considering this application was to confirm whether the application was for one of the purposes specified in section 30, to identify and assess the risks and to determine whether the substance could be adequately contained by controls to provide for each of the matters specified in Part III of the Third Schedule of the Act. ERMA New Zealand Decision: Application HSC07023 Page 2 of 13 Purpose of the application 1 4.3 The purpose of the application is to import or manufacture into containment E85, a petrol and ethanol blend racing fuel for use solely at the Toyota Race Series (TRS) in New Zealand. The Toyota Race Series is run over the summer period in New Zealand at various tracks around New Zealand for a total of 7-8 meets each year. The E85 race fuel will be restricted to use by the race teams that participate in the Toyota Race Series only. 4.4 E85 is a mixture of ethanol and petrol with the proportion of ethanol no less than 70% and no greater than 90% by volume. The substance is an approximate mix of 85% ethanol and 15% petrol by volume. 4.5 E85 is a standard grade automotive fuel available at public (retail) refuelling stations in the United States. E85 is used in vehicles with engines that are specially designed for its use (for example the ‘flex-fuel vehicle’) and cannot be used in a standard petrol engine. 4.6 The purpose of this application does not fall into any of the defined purposes listed under section 30. However, section 30(d) provides for containment applications to be made for “such other purposes as the Authority thinks fit”. 4.7 The meaning of subsection (d) must be interpreted in light of the subsections surrounding it. Section 30(a) through (c) inclusive provide for importation in containment for use as an analytical standard, for research and development purposes, in an emergency and where the hazardous substance is to be exported. 4.8 These sections do not envisage importation or manufacture for recreational purposes such as Shell is proposing under the current application. 4.9 In considering whether the current application fits under section 30(d), the Project Team considered the guidance provided in the Authority’s Interpretations and Explanations of Key Concepts Protocol.1 According to the Protocol, the Authority will interpret section 30(d) to include any purpose with the following characteristics: the purpose for which the substance is to be used is inherently consistent with the application of containment i.e. it would be inconsistent with the purpose for the substance to be released out of a contained situation; and/or the use of the substance for the purpose is time limited, and all quantities of the substance will after that period of time be either destroyed or held in secure containment until an application for release is approved. ERMA New Zealand Policy Series: Protocol 3, May 2006, ER-PR-03-18 05/06 ERMA New Zealand Decision: Application HSC07023 Page 3 of 13 4.10 4.11 The Project Team notes that: the purpose for which the substance is to be used is as fuel for the Toyota Race Series and this is consistent with the requirement for the substance to be kept in a contained situation as it will only be available to race competitors; the quantity of fuel being imported or manufactured is specified and limited to that needed for the TRS events; and once the race series is over the purpose for using the substance elapses; therefore its importation or manufacture can be time limited. Accordingly, the Project Team considers that the purpose of this application meets the criteria set out in the Protocol and it can therefore be considered as falling within the scope of section 30(d) as being for a purpose that the Authority “thinks fit”. Lifecycle 4.12 E85 (Toyota Race Series) will be manufactured specifically for use by the competitors in the Toyota Race Series (TRS) in New Zealand. The TRS starts on 2 November 2007 and finishes on 20 April 2008. 4.13 The E85 fuel used in the TRS events will be manufactured in small batches of up to 10000 litres per batch. Blending will occur at APS Chemicals at the Wynyard Wharf at Port Auckland using ethanol supplied by Anchor (Fonterra) and petrol supplied by Shell New Zealand. The volume of E85 expected to be required for TRS events would be between 20000 and 30000 litres per annum. 4.14 After blending the fuel will be tested to verify the product quality and then filled into 200 litre approved drums. The 200 litre drums will be transported by road (by a Shell freight forwarder who is an approved company to transport flammable class 3.1 liquids) to the various TRS event race tracks (approx 7-8 events per annum). A maximum of 2000 litres of E85 will be transported to each TRS event. The drums will be received at the site by the TRS series approved handler. 4.15 The fuel at the circuit will be stored in 200 litre drums in a designated area (stored under cover in a shipping container). This container will be sealed and locked when unattended. The fuel will be under the control of an approved handler and will only be supplied to the approved TRS competitors. 4.16 The E85 will be dispensed under appropriate control, by an approved handler into the TRS vehicles at the race track. The race cars will only be driven on race tracks designated for use in MotorSport New Zealand (MSNZ) Top Tier category races. The TRS race cars that will be the only vehicles to use the E85 fuel are specially modified to operate on an E85 fuel. This will ensure that the vehicle fuel system and engine components are suitable for use with E85 fuels. ERMA New Zealand Decision: Application HSC07023 Page 4 of 13 4.17 The E85 fuel will be stored and dispensed from one central point at each circuit. Each race circuit in the TRS would have a designated area within which all fuel including the fuel dispensing apparatus would be enclosed. This area would be remote from normal public access. The drums are stored in a shipping container until they are required and individual drums would be opened for fuel dispensing only when required. Dispensing would occur from this location, directly into the TRS vehicle or into metal pails (<20L capacity) to be taken back to the team pits. 4.18 At the conclusion of a race meeting any remaining fuel will be either transported to the next meet, or back to an approved storage facility. Empty drums will be sent to a drum recycler for reprocessing and cleaning. 4.19 At the conclusion of the race series, any surplus E85 (Toyota Race Series) will be returned to Shell New Zealand Ltd and blended with petrol until the portion of ethanol in the petrol is below 10%. In this proportion the resulting fuel blend will meet the requirements of the approved substances ‘petrol’ or ‘petrol-ethanol blends containing 1 - 10% ethanol by volume’. Hazardous properties 4.20 The Project Team notes that a containment application only requires sufficient understanding of the hazardous properties to ensure that any risks can be managed by the containment controls. 4.21 The applicant has assessed the available information and has identified that E85 is highly flammable. The substance may also be an acute toxicant via inhalation, oral and dermal routes, a skin and eye irritant and a suspected human carcinogen. Additionally, E85 may be an aquatic ecotoxicant. 4.22 The Project Team has reviewed the applicant’s hazard information and considers that it is sufficient to describe the hazards associated with the substance to ensure that any risks can be managed by the containment controls. 5 Containment and controls 5.1 E85 (Toyota Race Series) is intended for use in a specific motor sport event series and will not be available for general sale. 5.2 The Project Team considers that the controls that apply to E85 (Toyota Race Series) should be those that apply to petrol with additional controls being imposed that restrict the availability of E85 (Toyota Race Series). 5.3 The following risk assessment is based on these controls being in place. ERMA New Zealand Decision: Application HSC07023 Page 5 of 13 Identification and evaluation of the significant risks of the substances in containment 5.4 Like petrol, E85 (Toyota Race Series) is a highly flammable (3.1A) hydrocarbon substance and the major risks associated with the use of the substance are associated with its high flammability. There is potential for unintended ignition of the substance at any stage of the lifecycle. However, with the controls in place, the risks associated with the high flammability of the substance are considered low. 5.5 The risk to human health posed by the E85 (Toyota Race Series) is considered to be high without controls in place. This risk is considered to be equivalent to that of petrol. The Project Team considers that, with the controls in place the risk will be reduced and note that use of the substance will be restricted to race competitors minimising general public exposure. 5.6 If released from containment, the substance has the potential to result in adverse effects on aquatic ecosystems. Due to the high ethanol content, the substance would dispose readily in water leading to a greater dispersion of the hydrocarbon fraction in water than would occur with conventional petrol. To address this area of risk, the substance has been restricted from containment in stationary container systems (tanks) and, in particular, from underground tanks. The Project Team considers that, with the proposed controls in place, risks to the environment will be reduced to a level where they are considered to be insignificant to low. 5.7 Similarly, because of the nature of the containment and controls, the risk posed to the relationship of Māori and their culture and traditions with their ancestral lands, water, sites, waahi tapu, valued flora and fauna and other taonga is considered to be insignificant to low. Overall evaluation 5.8 The Project Team has evaluated the adequacy of the containment arrangements proposed by the applicant and the controls listed in Appendix 1, and notes that these cover the matters set out in Part III of the Third Schedule of the Act, being: to limit the likelihood of escape of any contained hazardous substances or contamination by hazardous substances; to exclude organisms from a facility; to exclude unauthorized people from the facility; to prevent unintended release of the substances by experimenters working with the substances; to control the effects of any accidental release of the substances; inspection and monitoring requirements; and qualifications required of the person responsible for implementing the controls. 5.9 The Project Team is satisfied that, with adherence to the controls listed in Appendix 1 and those controls in place under other legislation, E85 (Toyota Race Series) can be adequately contained. ERMA New Zealand Decision: Application HSC07023 Page 6 of 13 6 Decision 6.1 I have considered this application made under section 31 and, pursuant to section 32, I am satisfied that this application is for a purpose that fits the criteria of section 30(d). 6.2 Having considered the risks associated with the lifecycle of E85 (Toyota Race Series), I am satisfied that the controls imposed, including those in place under other legislation, will result in the substance being adequately contained. 6.3 In accordance with clause 36(2)(b), I record that, in reaching this conclusion, I have applied the criteria specified in section 32. 6.4 I have also applied the following criteria in the Methodology: clause 9 – equivalent of sections 5, 6 and 8; clause 11 – characteristics of substances; clause 21 – the decision accords with the requirements of the Act and regulations; clause 22 – the evaluation of risks – relevant considerations; clause 24 – the use of recognised risk identification, assessment, evaluation and management techniques. 6.5 The application to import into containment the hazardous substance, E85 (Toyota Race Series) is thus approved pursuant to section 32, with controls as set out in Appendix 1. signed Rob Forlong Date: 8 October 2007 Chief Executive of ERMA New Zealand ERMA New Zealand Approval Code: ERMA New Zealand Decision: Application HSC07023 HSC000290 Page 7 of 13 Appendix 1: List of controls that apply to E85 (Toyota Race Series) General 1. E85 (Toyota Race Series) shall only be manufactured within the confines of APS Chemicals at Wynyard Wharf (Port of Auckland), where it will be stored in 200 litre drums. E85 (Toyota Race Series) must not be stored in fixed aboveground or underground stationary container systems. 2. E85 (Toyota Race Series) is only to be used as a fuel in the Toyota Race Series and is not to be offered for general sale or supply. 3. Refuelling of vehicles will be conducted only at locations approved and authorised by the Toyota Race Series (TRS) organiser and will be conducted by TRS approved personnel and using TRS approved equipment. 4. Vehicles shall only be refuelled directly from the drums containing E85 (Toyota Race Series). 5. Vehicle refuelling sites shall be chosen so as to prevent the substance entering any surface water or groundwater system in the event of a spillage. 6. Any accidental spillage of E85 (Toyota Race Series) shall be contained and prevented from entering waterways. Refuelling sites used shall have spill containment facilities. 7. If for any reason a breach of containment occurs, the TRS Race Director (in the case of a breach occurring at a race event) or Shell New Zealand (in the case of a breach occurring at the blending/storage facility) shall notify the Department of Labour and ERMA New Zealand within 24 hours of the breach being detected. It is suggested that if a breach in containment results in contamination of a waterway, the relevant iwi authorities be advised. 8. At the end of the TRS the empty drums shall be recycled into general fuel handling use. 9. Surplus E85 (Toyota Race Series) remaining at the end of the race series shall be returned to Shell New Zealand Ltd and be blended with petrol until the portion of ethanol in the petrol is below 10%. In this proportion the resulting fuel blend will meet the requirements of the approved substances ‘petrol’ or ‘petrol-ethanol blends containing 1 - 10% ethanol by volume’. 10. A record shall be kept of all use of the substance. This record shall cover the amount of E85 (Toyota Race Series) manufactured, stored at various storage areas, and used in vehicles for the duration of the TRS events. 11. The Authority or its authorised agent or properly authorised enforcement officers, may inspect the facilities at any reasonable time. 12. The maximum total quantity of E85 (Toyota Race Series) that shall be manufactured under this approval is 30000 L. ERMA New Zealand Decision: Application HSC07023 Page 8 of 13 13. This approval remains in place for one year from the date of this decision. 14. The controls relating to adverse effects of unintended ignition of class 2 and class 3.1 hazardous substances, set out in Schedule 10 of the Hazardous Substances (Dangerous Goods and Scheduled Toxic Substances) Transfer Notice (New Zealand Gazette Issue No. 35, 26 March 2004, Issue Number 35) as amended, shall apply to this substance, notwithstanding clause 1 of the schedule. 15. The following regulations apply to E85 (Toyota Race Series) with the variations as shown in Table A1.1 - Hazardous Substances (Classes 1 to 5 Control Regulations) Regulations 2001; Hazardous Substances (Classes 6, 8, and 9 Controls) Regulations 2001; Hazardous Substances (Identification) Regulations 2001; Hazardous Substances (Packaging) Regulations 2001; Hazardous Substances (Disposal) Regulations 2001; Hazardous Substances (Emergency Management) Regulations 2001; and Hazardous Substances and New Organisms (Personnel Qualifications) Regulations 2001. Table A1.1 Controls on E85 (Toyota Race Series) Regulation Topic Variation Hazardous Substances (Classes 1 to 5 Control Regulations) Regulations 2001 7 General test certification requirements for all class 1 to 5 substances. 8 General public transportation E85 (Toyota Race Series) is not permitted to be restrictions and requirements carried on passenger service vehicles. for all class 1 to 5 substances. 55 General limits on flammable Where E85 (Toyota Race Series) is present at a place substances 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. 56 Approved handler requirements The trigger quantity for E85 (Toyota Race Series) is 100 litres. 58-59 Requirements for hazardous The trigger quantity for E85 (Toyota Race Series) is: atmosphere zones for class 100 litres (closed container) 2.1.1, class 2.1.2 and class 3.1 25 litres (filling) substances. 5 litres (open occasionally) 1 litre (if in open container for continuous use) 60-70 Requirements to reduce the likelihood of unintended ignition of class 2.1.1, class 2.1.2 and class 3.1 substances. 76 Segregation of incompatible substances. ERMA New Zealand Decision: Application HSC07023 With respect to regulation 61, subclauses (3), (4), and (5) do not apply to a vehicle at the dispensing unit of a refuelling outlet if, when E85 (Toyota Race Series) is being delivered to the fuel tank of the vehicle,— (1) the engine of the vehicle is turned off; and (2) no source of ignition is brought within 3 metres of the fuel tank of the vehicle (this includes smoking and the use of cell phones). Classes incompatible with E85 (Toyota Race Series) are classes 1, 2, 3.2, 4, 5. Page 9 of 13 Regulation 77-78 Topic Requirement to establish a hazardous substance location if flammable substances are present. 81 Test certification requirements for facilities where class 2.1.1, 2.1.2 or 3.1 substances are present Variation The person in charge of a place where E85 (Toyota Race Series) is located must establish in that place 1 or more hazardous substance locations where E85 (Toyota Race Series) is to be situated if E85 (Toyota Race Series) is present – (a) in a quantity exceeding 50 L; and (b) for a period exceeding 2 hours. These requirements are triggered by a quantity of E85 (Toyota Race Series) exceeding 50 L. This regulation does not apply to a person in charge of a hazardous substance location where E85 (Toyota Race Series) 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 Schedule 2 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 E85 (Toyota Race Series) as if the following new subclause was inserted: 83 Controls on transit depots where flammable substances are present (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. Transit depots are places designed to hold E85 (Toyota Race Series) (in containers that remain unopened) for a period of up to three days, but for periods that are more than 2 hours. The trigger quantity for E85 (Toyota Race Series) is 50 litres. Hazardous Substances (Classes 6, 8 and 9 Controls) Regulations 2001 11-27 Limiting exposure to toxic The following TELs are adopted for E85 (Toyota substances Racing Series): ERMA New Zealand Decision: Application HSC07023 Page 10 of 13 Regulation 29, 30 Topic Controlling exposure in places of work Variation Benzene TELAir TELWater = 10 µg/m3 = 10 µg/L Toluene TELAir TELWater = 400 µg/m3 = 800 µg/L Xylene TELAir = 870 µg/m3 TELWater = 600 µg/L The following WESs are adopted for E85 (Toyota Race Series): Benzene 5 ppm (16 mg/m3) (TWA) Ethyl benzene 100 ppm (434 mg/m3) (TWA) 125 ppm (543 mg/m3) (STEL) Toluene 50 ppm (188 mg/m3) (TWA) Xylene (o-, m-, p-isomers) 50 ppm (217 mg/m3) (TWA) 7 Requirements for equipment used to handle hazardous substances 32-45 Limiting exposure to ecotoxic substances The following EELs are adopted for components of E85 (Toyota Racing Series): Benzene -2000 µg/L (ANZECC 80% level of protection (2002)) Toluene -330 µg/L (interim ANZECC 80% level of protection (2002)) o-Xylene -640 µg/L (ANZECC 80% level of protection (2002)) m/p-Xylene -340 µg/L (ANZECC 80% level of protection (2002)) Hazardous Substances (Identification) Regulations 2001 6, 7, 32-35, General identification 36 (1)-(7) requirements. 9 11 14 I9 20 22 Priority identifiers for ecotoxic substances. Priority identifiers for flammable substances. Priority identifiers for certain toxic substances. Secondary identifiers for all hazardous substances. Secondary identifiers for ecotoxic substances. Secondary identifiers for ERMA New Zealand Decision: Application HSC07023 Page 11 of 13 Regulation Topic Variation flammable substances. 25 Secondary identifiers for toxic substances. 27 Use of Concentration Ranges. 29-31 Alternative information in certain cases Regulation 30 – Substances in multiple packaging Regulation 31 – Alternative information when substances are imported. 37-39, 47-50 Documentation required in These requirements are triggered by a quantity of E85 places of work. (Toyota Race Series) exceeding 5 L. 41 Specific documentation requirements for ecotoxic substances. 43 Specific documentation requirements for flammable substances. 46 Specific documentation requirements for toxic substances. 51-52 Duties of persons in charge of These requirements are triggered by a quantity of E85 places with respect to signage. (Toyota Race Series) exceeding 250 L. Hazardous Substances (Packaging) Regulations 2001 5, 6, 7 (1), 8 General packaging requirements. 9, 11, 19, 21 Packaging requirements for substances packed in limited quantities. Schedule 2 The tests in Schedule 2 correlate to the packaging requirements of UN Packing Group II (UN PGII). Schedule 4 This schedule describes the (minimum) packaging requirements that must be complied with for this substance. Hazardous Substances (Disposal) Regulations 2001 6, 8, 9 Disposal requirements. Surplus E85 (Toyota Race Series) remaining at the end of the race series shall be returned to Shell New Zealand Ltd and be blended with petrol until the portion of ethanol in the petrol is below 10%. In this proportion the resulting fuel blend will meet the requirements of the approved substances ‘petrol’ or ‘petrol-ethanol blends containing 1 - 10% ethanol by volume’. 10 Disposal requirements for packages. 11, 12 Disposal information These requirements are triggered by a quantity of E85 requirements. (Toyota Race Series) exceeding 1 L. 13, 14 Disposal documentation These requirements are triggered by a quantity of E85 ERMA New Zealand Decision: Application HSC07023 Page 12 of 13 Regulation Topic Variation requirements. (Toyota Race Series) exceeding 5 L. Hazardous Substances (Emergency Management) Regulations 2001 6, 7, 9-11 Level 1 emergency The trigger quantity for E85 (Toyota Race Series) is 1 management information: litre. General requirements. 8(c) Additional information The trigger quantity for E85 (Toyota Race Series) is 1 requirements for flammable litre. substances. Emergency management information is strongly recommended to be included on all the labelling of hand-carried containers that may be used to transport the substance. 8(e) Information requirements for toxic substances. 8(f) Information requirements for ecotoxic substances. 12-16, 18-20 Level 2 emergency These requirements are triggered by a quantity of E85 management information (Toyota Race Series) exceeding 5 L. requirements. 17 Specific documentation requirements for flammable and oxidising substances and organic peroxides. 21-24 Fire extinguishers. 25-34 Level 3 emergency These regulations do not apply to a place where there management requirements – is stored E85 (Toyota Race Series) in total quantities emergency response plans. of less than 2000 L contained in secure containers, each individual container with a capacity of less than 250 litres, 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. 32-41 Level 3 emergency These regulations do not apply to a place where there management requirements – is stored E85 (Toyota Race Series) in total quantities secondary containment. of less than 2000 L contained in secure containers, each individual container with a capacity of less than 250 litres, 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. 42 Level 3 emergency These requirements are triggered by a quantity of E85 management requirements – (Toyota Race Series) exceeding 250 L. signage. Hazardous Substances and New Organisms (Personnel Qualification) Regulations 2001 4-6 Approved Handler requirements. ERMA New Zealand Decision: Application HSC07023 Page 13 of 13