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2004-2005 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005 (Mr Windsor) A Bill for an Act concerning ethanol content in fuelContents 1 Short title .................................................................................................1 2 Commencement........................................................................................1 3 Schedule(s) ..............................................................................................2 Schedule 1--Amendment of the Fuel Quality Standards Act 2000 3 22A Requirement for ethanol content...........................................................3 22B Matters to be taken into account before regulations made ......................4 22C Fuel Credits .........................................................................................4 22D Variation of requirements for different areas.........................................5 i Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005
1 A Bill for an Act concerning ethanol content in fuel 2 The Parliament of Australia enacts: 3 1 Short title 4 This Act may be cited as the Fuel Quality Standards (Ethanol 5 content) Amendment Bill 2005. 6 2 Commencement 7 This Act commences on the day on which it receives the Royal 8 Assent. 9 Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005 1
1 3 Schedule(s) 2 Each Act that is specified in a Schedule to this Act is amended or 3 repealed as set out in the applicable items in the Schedule 4 concerned, and any other item in a Schedule to this Act has effect 5 according to its terms. 2 Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005
Schedule 1 1 2 Schedule 1--Amendment o f the Fuel Qual ity Standa rds Act 2000 3 Schedule 1--Amendment of the Fuel Quality 4 Standards Act 2000 5 1 Subsection 21(1) 6 Insert `Subject of section 22A' before `The Minister'. 7 2 After section 22 8 Insert 9 22A Requirement for ethanol content 10 (1) The volume percentage of cellulosic biomass ethanol which is to 11 be included in motor vehicle fuel supplied for use in Australia is to 12 be as prescribed by the regulations. 13 (2) Regulations under subsection (1) must include a schedule setting 14 out the different percentages to apply at different dates. The 15 schedule must include provision for the required volume 16 percentage to be at least 4% from 1 July 2009; at least 7% from 1 17 July 2012 and at least 10% from 1 July 2015. 18 (3) Details of how the percentage required is to be measured and 19 applied is to be prescribed by the regulations. 20 (4) In this section cellulosic biomass ethanol¸ means ethanol derived 21 from any lignocellulosic or hemicellulosic matter that is available 22 on a renewable or recurring basis, including: 23 (a) agricultural grain and sugarcane; or 24 (b) wood and wood residues; or 25 (c) plants; or 26 (d) grasses; or 27 (e) agricultural residues; or 28 (f) fibres; or 29 (g) animal wastes and other waste materials; or 30 (h) municipal solid waste. Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005 3
Schedule 1 1 22B Matters to be taken into account before regulations made 2 Before the Governor-General makes a regulation under section 3 22A: 4 (a) the Minister must take into consideration: 5 (i) the available supply of cellulosic biomass ethanol; and 6 (ii) any potential unfair effect on existing refineries; and 7 (iii) any seasonal variations in the use of renewable fuels; 8 and 9 (iv) the report, including any recommendations, of the Fuel 10 Standards Consultative Committee; and 11 (b) the Minister must be satisfied that the Reid Vapour Pressure 12 of the motor vehicle fuel will be at an acceptable level and, if 13 appropriate, alternative blending, storage or other 14 arrangements may be included in the regulations. 15 22C Fuel Credits 16 (1) Refineries, blenders or importers of motor vehicle fuel may be 17 given credits for the production or sale of motor vehicle fuel that 18 contains a percentage of ethanol greater than the percentage 19 required by the regulations in effect at the time of production, 20 importation or sale. 21 (2) In accordance with arrangements prescribed in the regulations, 22 credits received under subsection (1) in a financial year may be 23 counted in assessing compliance with the regulations made under 24 section applying in the following financial year or other period 25 prescribed in the regulations. 26 (3) Credits received under subsection (1) may be transferred or sold to 27 another person. 28 (4) The regulations may provide that receipt or purchase of credits 29 under subsection (1) can be used to offset a failure to comply with 30 a requirement which occurred in a previous year. 4 Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005
Schedule 1 1 22D Variation of requirements for different areas 2 (1) The regulations may specify a different volume percentage of 3 ethanol content to apply in respect of supplies of motor vehicle fuel 4 in specified areas of Australia. 5 (2) Regulations under subsection (1) must not: 6 (a) give preference (within the meaning of section 99 of the 7 Constitution) to one State or part of a State over another State 8 or part of a State; and 9 (b) have an effect equivalent to a value of more than 2% of the 10 annual motor vehicle fuel sales in Australia. 11 (3) Before the Governor-General makes a regulation under subsection 12 (1), the Minister must consult with the Fuel Standards Consultative 13 Committee and be satisfied that the variation is necessary as a 14 remedy for hardship or similar special circumstances. 15 3 Subsection 24(1) 16 Insert: 17 `and 18 (ca) before a regulation is made under section 22A', Fuel Quality Standards (Ethanol content) Amendment Bill 2005 No. , 2005 5