Rules on storage of petrol-ethanol blends relaxed

The Environmental Risk Management Authority has relaxed the rules for storing so-called E10 petrol-ethanol blends by removing the requirement that the fuel must always be stored in double-skinned underground tanks.

Previously, the rules prohibited storage in single-skinned underground tanks.

The Energy Efficiency and Conservation Authority asked ERMA New Zealand to reassess the storage rules as they effectively ruled out the environmentally-friendly E10 fuel being available at many service stations, which don't have double-skinned tanks.

ERMA New Zealand accepts there are potential climate change benefits in making petrol-ethanol blends of 1 to 10% ethanol more widely available and that E10 is likely to become more widely available if the current restrictions on storage are relaxed.

ERMA New Zealand General Manager, Hazardous Substances, Andrea Eng, says precautions will still be in place to protect the environment. "Single-skinned tanks won't be able to be used to store E10 in highly sensitive areas, that is, where leaks could damage drinking water supplies. In moderately sensitive areas where tanks are near waterways, single-skinned tanks will have to undergo integrity testing and have complete records of fuel storage."

Ms Eng says the ERMA New Zealand decision effectively reduces the compliance costs for storing biofuels.

All single-skinned tanks for storing E10 will have to have a test certificate, which will confirm that tanks are structurally sound. All new fuel tanks now have to be double-skinned.

ENDS

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