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2005 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 (Mr Katter) A Bill for an Act to amend the Fuel Quality Standards Act 2000 to regulate the amount of renewable fuel in motor vehicle fuel, and for related purposesContents 1 Short title.......................................................................................1 2 Commencement .............................................................................1 3 Schedule(s)....................................................................................2 Schedule 1--Amendment of the Fuel Quality Standards Act 2000 3 i Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005
1 A Bill for an Act to amend the Fuel Quality 2 Standards Act 2000 to regulate the amount of 3 renewable fuel in motor vehicle fuel, and for related 4 purposes 5 The Parliament of Australia enacts: 6 1 Short title 7 This Act may be cited as the Fuel Quality Standards (Renewable 8 Content of Motor Vehicle Fuel) Amendment Act 2005. 9 2 Commencement 10 (1) Each provision of this Act specified in column 1 of the table 11 commences, or is taken to have commenced, on the day or at the 12 time specified in column 2 of the table. 13 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 1
Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent this Act not elsewhere covered by this table 2. Schedule 1 A day or days to be fixed by proclamation 1 Note: This table relates only to the provisions of this Act as originally 2 passed by the Parliament and assented to. It will not be expanded to 3 deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table is for additional information that is not part 5 of this Act. This information may be included in any published 6 version of this Act. 7 3 Schedule(s) 8 Each Act that is specified in a Schedule to this Act is amended or 9 repealed as set out in the applicable items in the Schedule 10 concerned, and any other item in a Schedule to this Act has effect 11 according to its terms. 2 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005
1 2 3 4 Schedule 1--Amendment of the Fuel Quality 5 Standards Act 2000 6 1 After Part 2 7 Insert: 8 Part 2A--Renewable fuel 9 Division 1--Preliminary 10 29A Overview of this Part 11 This Part sets out a regulatory regime in relation to the inclusion of 12 cellulosic biomass ethanol and other renewable fuel in fuel 13 supplied for use in motor vehicles in Australia. 14 Division 2 establishes an office of Renewable Fuel Program 15 Administrator and sets out the functions of that office. 16 Division 3 deals with the requirements for the inclusion of 17 cellulosic biomass ethanol or other renewable fuel. 18 Division 4 deals with reporting requirements. 19 29B Definitions 20 In this Part: 21 Administrator means the Renewable Fuel Program Administrator 22 appointed under section 29C. 23 cellulosic biomass ethanol means ethanol derived from any 24 lignocellulosic or hemicellulosic matter that is available on a 25 renewable or recurring basis, including: 26 (a) agricultural grain and sugarcane; or 27 (b) wood and wood residues; or Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 3
Schedule 1 1 (c) plants; or 2 (d) grasses; or 3 (e) agricultural residues; or 4 (f) fibres; or 5 (g) animal wastes and other waste materials; or 6 (h) municipal solid waste. 7 existing refinery means a fuel plant or refinery in existence on the 8 date of commencement of this Part or planned or under 9 construction at the date of commencement of this Part and at a 10 stage of development where, in the opinion of the Administrator, 11 the provisions of this Part would substantially affect the financial 12 circumstances of the plant or refinery or those holding an interest 13 in the plant or refinery. 14 motor vehicle fuel has the meaning given by the regulations. 15 Reid Vapour Pressure means the absolute vapour pressure of a 16 volatile organic liquid measured by methods approved by a 17 relevant State or Territory authority. 18 relevant State or Territory authority means a body established by 19 a State or Territory government and prescribed by the regulations 20 as a relevant authority for the purposes of this Part. 21 renewable fuel means motor vehicle fuel that: 22 (a) is produced from grain, sugarcane, starch, oilseeds or other 23 similar biomass; or 24 (b) is natural gas produced from a biogas source, including a 25 landfill, sewage waste treatment plant, feedlot, or other place 26 where decaying organic material is found; and 27 (c) is used to replace or reduce the quantity of fossil fuel present 28 in a fuel mixture used to operate a motor vehicle. 29 Division 2--Renewable Fuel Program Administrator 30 29C Appointment of Renewable Fuel Program Administrator 31 (1) Within six months of the commencement of this Part, the Minister 32 must appoint, by written instrument, a person to be the Renewable 33 Fuel Program Administrator (the Administrator). 4 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005
Schedule 1 1 (2) A person may be appointed Administrator for a period of five years 2 and may be re-appointed. 3 (3) An instrument under subsection (1) is a disallowable instrument for 4 the purposes of section 42 of the Legislative Instruments Act 2003. 5 29D Functions of the Renewable Fuel Program Administrator 6 (1) In addition to any functions conferred by this Part, the Renewable 7 Fuel Program Administrator has the following functions: 8 (a) overseeing the operation of the requirements of this Part, 9 including enforcement under the provisions of Part 3 of this 10 Act; and 11 (b) approval of prices to be paid to each of the producers and 12 processors in the cellulosic biomass ethanol production and 13 marketing chain as prescribed in the regulations; and 14 (c) approval of the composition and source of blends of 15 renewable and fossil fuel as prescribed in the regulations; and 16 (d) issuing and approving the sale, transfer and use of renewable 17 fuel credits under section 29H. 18 (2) Any prices approved under paragraph (1)(c) must be set out in a 19 written instrument which is a disallowable instrument for the 20 purposes of section 42 of the Legislative Instruments Act 2003. 21 Division 3--Renewable Fuel Program 22 29E Supply of motor vehicle fuel 23 (1) A person is guilty of an offence if: 24 (a) the person supplies motor vehicle fuel in Australia that is the 25 subject of regulations made under section 29F or 29I; and 26 (b) the person is a constitutional corporation or a Commonwealth 27 entity or the person supplies the fuel in the course of 28 constitutional trade or commerce; and 29 (c) the motor vehicle fuel does not comply with the regulations; 30 and 31 (d) the supply is not in order to comply with a direction or order 32 under an emergency law. 33 Maximum penalty: 10,000 penalty units. Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 5
Schedule 1 1 Note: Chapter 2 of the Criminal Code sets out the general principles of 2 criminal responsibility. 3 (2) However, the person is not guilty of the offence if the person 4 believes on reasonable grounds that the motor vehicle fuel that is 5 supplied will be further processed for the purpose of bringing the 6 fuel into compliance with the regulations. 7 Note: A defendant bears an evidential burden in relation to the matter in 8 subsection (2): see subsection 13.3(3) of the Criminal Code. 9 29F Requirements for renewable fuel 10 (1) The volume percentage of cellulosic biomass ethanol or other 11 renewable fuel which is to be included in motor vehicle fuel 12 supplied for use in Australia is prescribed by the regulations and is 13 to commence within one year from the date of commencement of 14 this Part. 15 (2) Regulations under subsection (1) must include a schedule setting 16 out different percentages to apply at different dates. The schedule 17 must include provision for the required volume percentage to be at 18 least 4% from 1 July 2006, at least 7% from 1July 2009 and at least 19 10% from 1 July 2012. 20 (3) Details of how the percentage required is to be measured and 21 applied by any person involved in the production or dispensing of 22 motor vehicle fuel is prescribed in the regulations. 23 29G Matters to be taken into account before regulations made 24 Before the Governor-General makes a regulation under section 25 29F: 26 (a) the Minister must take into consideration: 27 (i) the available supply of cellulosic biomass ethanol and 28 other renewable fuels; and 29 (ii) any potential unfair effect on existing refineries; and 30 (iii) any seasonal variations in the use of renewable fuels; 31 and 32 (iv) the report, including any recommendations, of the 33 Administrator prepared under section 29K or any other 34 recommendations of the Administrator; and 6 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005
Schedule 1 1 (b) the Minister must be satisfied that the Reid Vapour Pressure 2 of the motor vehicle fuel will be at an acceptable level and, if 3 appropriate, alternative blending, storage or other 4 arrangements may be included in the regulations. 5 29H Renewable Fuel Credits 6 (1) Refineries, blenders or importers of motor vehicle fuel may be 7 given credits for the production or sale of motor vehicle fuel that 8 contains a quantity of renewable fuel greater than the quantity 9 required by the regulations in effect at the time of production, 10 importation or sale. 11 (2) In accordance with arrangements prescribed in the regulations, 12 credits received under subsection (1) in a financial year may be 13 counted in assessing compliance with the regulations made under 14 section 29F or 29I applying in the following financial year or other 15 period prescribed in the regulations. 16 (3) Credits received under subsection (1) may be transferred or sold to 17 another person. 18 (4) The regulations may provide that receipt or purchase of credits 19 under subsection (1) can be used to offset a failure to comply with 20 a requirement which occurred in a previous year. 21 29I Variation of requirements for different areas 22 (1) The regulations may specify a different volume percentage of 23 renewable fuel to apply in respect of supplies of motor vehicle fuel 24 in specified areas of Australia. 25 (2) Regulations under subsection (1) must not: 26 (a) give preference (within the meaning of section 99 of the 27 Constitution) to one State or part of a State over another State 28 or part of a State; and 29 (b) have an effect equivalent to a value of more than 2% of the 30 annual motor vehicle fuel sales in Australia. 31 (3) Before the Governor-General makes a regulation under subsection 32 (1), the Minister must consult with the Administrator and be Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 7
Schedule 1 1 satisfied that the variation is necessary as a remedy for hardship or 2 similar special circumstances. 3 29J Supplies of motor vehicle fuel to be accompanied by 4 documentation 5 If: 6 (a) a person (the supplier) supplies motor vehicle fuel in 7 Australia to another person and the fuel is subject to 8 regulations under section 29F or 29I; and 9 (b) the supplier is a constitutional corporation or a 10 Commonwealth entity or the supplier supplies the motor 11 vehicle fuel in the course of constitutional trade or 12 commerce; and 13 (c) the other person is not the end-user of the motor vehicle fuel; 14 the supplier must, within the period prescribed by the regulations, 15 provide the other person with a document or documents 16 containing: 17 (d) a statement as to whether or not the motor vehicle fuel 18 complies with the regulations; and 19 (e) any other information relating to the motor vehicle fuel that 20 is prescribed by the regulations. 21 Maximum penalty: 60 penalty units. 22 Note: Chapter 2 of the Criminal Code sets out the general principles of 23 criminal responsibility. 24 Division 4--Record keeping and reports 25 29K Initial report by Administrator 26 (1) Within 6 months of the commencement of this Part, the 27 Administrator must prepare a report on the likely impact of this 28 Part on the motor vehicle fuel market in Australia, including: 29 (a) any likely adverse impact on consumers; and 30 (b) an evaluation of renewable fuel supplies and prices, 31 blendstock supplies and supply and distribution capabilities. 8 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005
Schedule 1 1 (2) The Minister must have regard to the report, including any 2 recommendations of the Administrator, before the Governor- 3 General makes regulations under section 29F or 29I. 4 29L Annual report by Administrator on use of renewable fuels 5 (1) The Administrator must, as soon as practicable after the end of 6 each financial year (commencing after 30 June 2005), prepare and 7 give to the Minister, a report setting out for each State, Territory or 8 area covered by specific regulations, the market share of: 9 (a) fuel containing ethanol; and 10 (b) fuel containing other renewable fuel; 11 and any other matters prescribed in the regulations. 12 (2) The Minister must cause a copy of the report to be laid before each 13 House of the Parliament within 15 sitting days of the day on which 14 the report is given to the Minister. 15 29M Record keeping 16 (1) If: 17 (a) a person supplies motor vehicle fuel in Australia that is the 18 subject of regulations under section 29F or 29I; and 19 (b) the person is a constitutional corporation or a Commonwealth 20 entity or the person supplies the fuel in the course of 21 constitutional trade or commerce; 22 the person must keep and maintain records in relation to such 23 supplies in accordance with the regulations. 24 Maximum penalty: 60 penalty units. 25 Note: Chapter 2 of the Criminal Code sets out the general principles of 26 criminal responsibility. 27 (2) This offence is one of strict liability. 28 Note: For strict liability, see section 6.1 of the Criminal Code. 29 29N Annual statements 30 Producers 31 (1) If: Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 9
Schedule 1 1 (a) a person produces and supplies motor vehicle fuel in 2 Australia during a calendar year; and 3 (b) the fuel is the subject of regulations under section 29F or 29I; 4 and 5 (c) the person is a constitutional corporation or a Commonwealth 6 entity or the person supplies the fuel in the course of 7 constitutional trade or commerce; 8 the person must provide an annual statement for the year. 9 Importers 10 (2) If: 11 (a) a person imports motor vehicle fuel into Australia, and 12 supplies the fuel in Australia, during a calendar year; and 13 (b) the fuel is the subject of regulations under section 29F or 29I; 14 the person must provide an annual statement for the year. 15 When statement to be provided 16 (3) The statement must be provided on or before: 17 (a) 14 February in the following year; or 18 (b) any later day allowed by the Administrator. 19 Content of statement 20 (4) The statement must: 21 (a) be in a form (which may be an electronic form) approved by 22 the Administrator; and 23 (b) contain any information required by the Administrator; and 24 (c) be provided to the Administrator in accordance with the 25 regulations. 26 Offence 27 (5) A person is guilty of an offence if the person contravenes a 28 requirement of this section. 29 Maximum penalty: 60 penalty units. 30 Note: Chapter 2 of the Criminal Code sets out the general principles of 31 criminal responsibility. 10 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005
Schedule 1 1 (6) This offence is one of strict liability. 2 Note: For strict liability, see section 6.1 of the Criminal Code. 3 2 After subsection 72(1) 4 Insert: 5 (1A) A review conducted before the second anniversary of Part 2A of 6 this Act does not need to include the operation of Part 2A. 7 Fuel Quality Standards (Renewable Content of Motor Vehicle Fuel) Amendment Bill 2005 No. , 2005 11