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This is a Bill, not an Act. For current law, see the Acts databases.


FUEL QUALITY STANDARDS (RENEWABLE CONTENT OF MOTOR VEHICLE FUEL) AMENDMENT BILL 2005

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

 


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