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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Renewable Fuel Bill 2017
No. , 2017
(Mr Katter)
A Bill for an Act to provide for the regulation of
renewable fuel content in motor vehicle fuel, and
for related purposes
No. , 2017
Renewable Fuel Bill 2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Amendments
3
Fuel Quality Standards Act 2000
3
No. , 2017
Renewable Fuel Bill 2017
1
A Bill for an Act to provide for the regulation of
1
renewable fuel content in motor vehicle fuel, and
2
for related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the Renewable Fuel Act 2017.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Renewable Fuel Bill 2017
No. , 2017
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
A single day to be fixed by Proclamation.
However, if the provisions do not commence
within the period of 6 months beginning on
the day this Act receives the Royal Assent,
they commence on the day after the end of
that period.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Amendments Schedule 1
No. , 2017
Renewable Fuel Bill 2017
3
Schedule 1--Amendments
1
2
Fuel Quality Standards Act 2000
3
1 After Part 2
4
Insert:
5
Part 2A--Renewable fuel
6
Division 1--Preliminary
7
36A Overview of this Part
8
This Part sets out a regulatory regime in relation to the inclusion of
9
cellulosic biomass ethanol and other renewable fuel in fuel
10
supplied for use in motor vehicles in Australia.
11
Division 2 establishes an office of Renewable Fuel Program
12
Administrator and sets out the functions of that office.
13
Division 3 deals with the requirements for the inclusion of
14
cellulosic biomass ethanol or other renewable fuel.
15
Division 4 deals with reporting requirements.
16
36B Definitions
17
In this Part:
18
Administrator means the Renewable Fuel Program Administrator
19
appointed under section 36C.
20
cellulosic biomass ethanol means ethanol derived from any
21
lignocellulosic or hemicellulosic matter that is available on a
22
renewable or recurring basis, including:
23
(a) agricultural grain and sugarcane; or
24
(b) wood and wood residues; or
25
(c) plants; or
26
Schedule 1 Amendments
4
Renewable Fuel Bill 2017
No. , 2017
(d) grasses; or
1
(e) agricultural residues; or
2
(f) fibres; or
3
(g) animal wastes and other waste materials; or
4
(h) municipal solid waste.
5
existing refinery means a fuel plant or refinery in existence on the
6
date of commencement of this Part or planned or under
7
construction at the date of commencement of this Part and at a
8
stage of development where, in the opinion of the Administrator,
9
the provisions of this Part would substantially affect the financial
10
circumstances of the plant or refinery or those holding an interest
11
in the plant or refinery.
12
motor vehicle fuel has the meaning given by the regulations.
13
Reid Vapour Pressure means the absolute vapour pressure of a
14
volatile organic liquid measured by methods approved by a
15
relevant State or Territory authority.
16
relevant State or Territory authority means a body established by
17
a State or Territory government and prescribed by the regulations
18
as a relevant authority for the purposes of this Part.
19
renewable fuel means motor vehicle fuel that:
20
(a) is produced from grain, sugarcane, starch, oilseeds or other
21
similar biomass; or
22
(b) is natural gas produced from a biogas source, including a
23
landfill, sewage waste treatment plant, feedlot, or other place
24
where decaying organic material is found; and
25
(c) is used to replace or reduce the quantity of fossil fuel present
26
in a fuel mixture used to operate a motor vehicle.
27
Division 2--Renewable Fuel Program Administrator
28
36C Appointment of Renewable Fuel Program Administrator
29
(1) Within 6 months of the commencement of this Part, the Minister
30
must appoint, by legislative instrument, a person to be the
31
Renewable Fuel Program Administrator (the Administrator).
32
Amendments Schedule 1
No. , 2017
Renewable Fuel Bill 2017
5
(2) A person may be appointed Administrator for a period of 5 years
1
and may be re-appointed.
2
36D Functions of the Renewable Fuel Program Administrator
3
In addition to any functions conferred by this Part, the Renewable
4
Fuel Program Administrator has the following functions:
5
(a) overseeing the operation of the requirements of this Part,
6
including enforcement under the provisions of Part 3 of this
7
Act;
8
(b) approval of prices to be paid to each of the producers and
9
processors in the cellulosic biomass ethanol production and
10
marketing chain as prescribed in the regulations;
11
(c) approval, by legislative instrument, of the composition and
12
source of blends of renewable and fossil fuel as prescribed in
13
the regulations;
14
(d) issuing and approving the sale, transfer and use of renewable
15
fuel credits under section 36H.
16
Division 3--Renewable Fuel Program
17
36E Supply of motor vehicle fuel
18
(1) A person commits an offence if:
19
(a) the person supplies motor vehicle fuel in Australia that is the
20
subject of regulations made under section 36F or 36J; and
21
(b) the person is a constitutional corporation or a Commonwealth
22
entity or the person supplies the fuel in the course of
23
constitutional trade or commerce; and
24
(c) the motor vehicle fuel does not comply with the regulations;
25
and
26
(d) the supply is not in order to comply with a direction or order
27
under an emergency law.
28
Penalty: 10,000 penalty units.
29
Note:
Chapter 2 of the Criminal Code sets out the general principles of
30
criminal responsibility.
31
(2) However, subsection (1) does not apply if the person believes on
32
reasonable grounds that the motor vehicle fuel that is supplied will
33
Schedule 1 Amendments
6
Renewable Fuel Bill 2017
No. , 2017
be further processed for the purpose of bringing the fuel into
1
compliance with the regulations.
2
Note:
A defendant bears an evidential burden in relation to the matter in
3
subsection (2): see subsection 13.3(3) of the Criminal Code.
4
36F Requirements for renewable fuel
5
(1) The volume percentage of cellulosic biomass ethanol or other
6
renewable fuel which is to be included in motor vehicle fuel
7
supplied for use in Australia is prescribed by the regulations and is
8
to commence within one year from the date of commencement of
9
this Part.
10
(2) Regulations under subsection (1) must include a schedule setting
11
out different percentages to apply at different dates. The schedule
12
must include provision for the required volume percentage to be at
13
least 5% from 1 July 2019 and at least 10% from 1 July 2022.
14
(3) The regulations must prescribe:
15
(a) details of how the percentage required is to be measured and
16
applied by any person involved in the production or
17
dispensing of motor vehicle fuel; and
18
(b) incentives that are to apply if the required volume
19
percentages are met earlier, or exceeded.
20
36G Matters to be taken into account before regulations made
21
Before the Governor-General makes a regulation under
22
section 36F:
23
(a) the Minister must take into consideration:
24
(i) the available supply of cellulosic biomass ethanol and
25
other renewable fuels; and
26
(ii) any potential unfair effect on existing refineries; and
27
(iii) any seasonal variations in the use of renewable fuels;
28
and
29
(iv) the report, including any recommendations, of the
30
Administrator prepared under section 36L or any other
31
recommendations of the Administrator; and
32
(b) the Minister must be satisfied that the Reid Vapour Pressure
33
of the motor vehicle fuel will be at an acceptable level and, if
34
Amendments Schedule 1
No. , 2017
Renewable Fuel Bill 2017
7
appropriate, alternative blending, storage or other
1
arrangements may be included in the regulations.
2
36H Renewable fuel credits
3
(1) Refineries, blenders or importers of motor vehicle fuel may be
4
given credits for the production or sale of motor vehicle fuel that
5
contains a quantity of renewable fuel greater than the quantity
6
required by the regulations in effect at the time of production,
7
importation or sale.
8
(2) In accordance with arrangements prescribed in the regulations,
9
credits received under subsection (1) in a financial year may be
10
counted in assessing compliance with the regulations made under
11
section 36F or 36J applying in the following financial year or other
12
period prescribed in the regulations.
13
(3) Credits received under subsection (1) may be transferred or sold to
14
another person.
15
(4) The regulations may provide that receipt or purchase of credits
16
under subsection (1) can be used to offset a failure to comply with
17
a requirement which occurred in a previous year.
18
36J Variation of requirements for different areas
19
(1) The regulations may specify a different volume percentage of
20
renewable fuel to apply in respect of supplies of motor vehicle fuel
21
in specified areas of Australia.
22
(2) Regulations under subsection (1) must not:
23
(a) give preference (within the meaning of section 99 of the
24
Constitution) to one State or part of a State over another State
25
or part of a State; and
26
(b) have an effect equivalent to a value of more than 2% of the
27
annual motor vehicle fuel sales in Australia.
28
(3) Before the Governor-General makes a regulation under
29
subsection (1), the Minister must consult with the Administrator
30
and be satisfied that the variation is necessary as a remedy for
31
hardship or similar special circumstances.
32
Schedule 1 Amendments
8
Renewable Fuel Bill 2017
No. , 2017
36K Supplies of motor vehicle fuel to be accompanied by
1
documentation
2
(1) If:
3
(a) a person (the supplier) supplies motor vehicle fuel in
4
Australia to another person and the fuel is subject to
5
regulations under section 36F or 36J; and
6
(b) the supplier is a constitutional corporation or a
7
Commonwealth entity or the supplier supplies the motor
8
vehicle fuel in the course of constitutional trade or
9
commerce; and
10
(c) the other person is not the end-user of the motor vehicle fuel;
11
the supplier must, within the period prescribed by the regulations,
12
provide the other person with a document or documents
13
containing:
14
(d) a statement as to whether or not the motor vehicle fuel
15
complies with the regulations; and
16
(e) any other information relating to the motor vehicle fuel that
17
is prescribed by the regulations.
18
(2) The supplier commits an offence if the supplier fails to comply
19
with subsection (1).
20
Penalty: 60 penalty units.
21
Division 4--Record keeping and reports
22
36L Initial report by Administrator
23
(1) Within 6 months of the commencement of this Part, the
24
Administrator must prepare a report on the likely impact of this
25
Part on the motor vehicle fuel market in Australia, including:
26
(a) any likely adverse impact on consumers; and
27
(b) an evaluation of renewable fuel supplies and prices,
28
blendstock supplies and supply and distribution capabilities.
29
(2) The Minister must have regard to the report, including any
30
recommendations of the Administrator, before the
31
Governor-General makes regulations under section 36F or 36J.
32
Amendments Schedule 1
No. , 2017
Renewable Fuel Bill 2017
9
36M Annual report by Administrator on use of renewable fuels
1
(1) The Administrator must, as soon as practicable after the end of
2
each financial year (commencing after 30 June 2017), prepare and
3
give to the Minister, a report setting out for each State, Territory or
4
area covered by specific regulations, the market share of:
5
(a) fuel containing ethanol; and
6
(b) fuel containing other renewable fuel;
7
and any other matters prescribed in the regulations.
8
(2) The Minister must cause a copy of the report to be laid before each
9
House of the Parliament within 15 sitting days of the day on which
10
the report is given to the Minister.
11
36N Record keeping
12
(1) If:
13
(a) a person supplies motor vehicle fuel in Australia that is the
14
subject of regulations under section 36F or 36J; and
15
(b) the person is a constitutional corporation or a Commonwealth
16
entity or the person supplies the fuel in the course of
17
constitutional trade or commerce;
18
the person must keep and maintain records in relation to such
19
supplies in accordance with the regulations.
20
(2) The person commits an offence of strict liability if the person fails
21
to comply with subsection (1).
22
Penalty: 60 penalty units.
23
Note:
For strict liability, see section 6.1 of the Criminal Code.
24
36P Annual statements
25
Producers
26
(1) If:
27
(a) a person produces and supplies motor vehicle fuel in
28
Australia during a calendar year; and
29
(b) the fuel is the subject of regulations under section 36F or 36J;
30
and
31
Schedule 1 Amendments
10
Renewable Fuel Bill 2017
No. , 2017
(c) the person is a constitutional corporation or a Commonwealth
1
entity or the person supplies the fuel in the course of
2
constitutional trade or commerce;
3
the person must provide an annual statement for the year.
4
Importers
5
(2) If:
6
(a) a person imports motor vehicle fuel into Australia, and
7
supplies the fuel in Australia, during a calendar year; and
8
(b) the fuel is the subject of regulations under section 36F or 36J;
9
the person must provide an annual statement for the year.
10
When statement to be provided
11
(3) The statement must be provided on or before:
12
(a) 14 February in the following year; or
13
(b) any later day allowed by the Administrator.
14
Content of statement
15
(4) The statement must:
16
(a) be in a form (which may be an electronic form) approved by
17
the Administrator; and
18
(b) contain any information required by the Administrator; and
19
(c) be provided to the Administrator in accordance with the
20
regulations.
21
Offence
22
(5) A person commits an offence of strict liability if the person fails to
23
comply with a requirement of this section.
24
Penalty: 60 penalty units.
25
Note:
For strict liability, see section 6.1 of the Criminal Code.
26
2 After subsection 72(1)
27
Insert:
28
(1A) A review conducted before the second anniversary of Part 2A of
29
this Act does not need to include the operation of Part 2A.
30
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