Details of the Liquid Fuel Emergency Regulations 2021

PART 1 - PRELIMINARY

Section 1 - Name of Instrument

This section specifies the name of the Regulations as the Liquid Fuel Emergency Regulations 2021.

Section 2 - Commencement

This section provides the Regulations commenced the day after the instrument was registered. This date is specified in Column 3.

Section 3 - Authority

This section provides the Liquid Fuel Emergency Regulations 2021 are made under the Liquid Fuel Emergency Act 1984.

Section 4 - Definitions

This item provides for definitions of terms used in the Regulations.

The term "Act" is defined to mean the Liquid Fuel Emergency Act 1984.

The term "biofuel" is defined to mean a liquid fuel derived or recovered from biomass. It is intended to be interpreted broadly and is consistent with definitions under the National Greenhouse and Energy Reporting Act 2007.

The term "biomass" is defined to mean a non-fossilised and biodegradable organic material which originates from plants, animals, micro-organisms or a combination of these sources. Some types of biomass which may be used to create biofuel include, but are not limited to, algae, plant seeds, sugar cane bagasse, tallow, and used cooking oil. It is intended to be interpreted broadly and is consistent with definitions under the National Greenhouse and Energy Reporting Act 2007.

Several terms used in the Regulations are defined in the Act, including 'Energy Minister', 'liquid fuel' and 'liquid petroleum product'.

Section 5- Refined liquid petroleum products

This section provides for additional liquid fuels to be refined liquid petroleum products for the purposes of the Act. The Act provides refined liquid petroleum products may be subject to the bulk allocation powers under sections 21-22 and the retail rationing powers under sections 23-24.

Since the Act commenced in 1984, the most common uses for liquid fuels and their composition has changed. The addition of new fuels through the Regulations is intended to ensure the Act continues to be effective in the event it is necessary for the Minister to use its powers.  Section 3 of the Act provides for a definition of refined liquid petroleum product. Part (b) of the definition allows for additional liquid petroleum products to be added through the regulations.

Paragraph 5(a) adds diesel, with the exception of 'automotive distillate' and 'industrial diesel fuel' which were already covered by the Act. This makes clear all forms of diesel may be subject to bulk allocation and retail rationing in the event of a National Liquid Fuel Emergency, not just those intended for use in industrial processes or motor vehicles. For example, where diesel is used to generate electricity or to power marine shipping it may be subject to a bulk allocation or retail rationing to increase its availability to essential users.

Paragraph 5(b) adds gasoline, with the exception of motor spirit and aviation gasoline which were already covered by the Act. Motor spirit is the historical term for gasoline or what is commonly termed petrol in Australia. Aviation gasoline (often called avgas) is a form of gasoline for use in aeroplanes. This is intended to make clear all forms of gasoline can be subject to bulk allocation and retail rationing, not just those intended for use in motor vehicles and turbine aeroplanes. For example, gasoline for use in industrial processes or to power boats may be subject to a bulk allocation or retail rationing to increase its availability to essential users.

Paragraph 5(c) adds kerosine, with the exception of aviation turbine fuel, lighting kerosine and power kerosine which were already covered by the Act. The spelling of kerosine reflects the language used in the Act and is the same product as that which is commonly referred to as kerosene. This addition is intended to make clear all forms of kerosine (kerosene) may be subject to bulk allocation and retail rationing, not just those intended for use in jet engines, lighting and electricity generation. For example, kerosene used in industrial processes or heating may be subject to a bulk allocation or retail rationing to increase its availability to essential users.

Paragraph 5(d) adds blends of diesel and biofuel, with the exception of automotive distillate and industrial diesel fuel which were already covered by the Act. This is intended to make clear that a mixture of petroleum-based diesel and biofuel is a refined liquid petroleum product for the purposes of the Act. For example, a blended fuel which is comprised of 80 per cent petroleum-based diesel and 20 per cent biofuel would be captured by this subsection and so could be subject to a bulk allocation or retail rationing to increase its availability to essential users.

 

Paragraph 5(e) adds blends of two or more liquid fuels. This is intended to make clear mixtures of refined liquid petroleum products are a refined liquid petroleum product for the purposes of the Act. For example, a mixture of motor spirit (petrol) and ethanol which is a refined liquid petroleum product under paragraph (d) of the definition in the Act, such as E10 fuel, would be a blend captured by this subsection. Similarly, a blend of automotive distillate and aviation turbine fuel (i.e. a mixture of diesel and kerosene) which may be sold for use in off-road diesel engines in an emergency, would be a blend captured by this section.

Section 6 - Consultation between Ministers concerning emergency procedures

Section 6 prescribes how the the Minister responsible for the administration of the Act may give notice to the other Energy Ministers for the purposes of the Act.

The Act requires the Minister provide notice to the other Energy Ministers before determining a planning period under subsection 9(1) of the Act, identifying essential users under subsection 11(1) of the Act, exercising a contingency power under Part II of the Act or exercising an emergency power under Part III of the Act. Section 42 of the Act requires that the manner in which the Minister provides this notice must be set out in the Regulations.

Section 6 sets out the manner by which the Minister may give notice to the other Energy Ministers. The permitted means are by providing notice in person, by telephone, in a videoconference or teleconference, or by email or another form of written communication such as a letter or text message.

The context of a National Liquid Fuel Emergency is difficult to predict. It is envisioned situations could arise where face to face meetings are not possible or where standard communication systems are unavailable. As a result, this section provides the Minister with a wide range of options for how notice may be provided to the other Energy Ministers.

The Liquid Fuel Emergency Guidelines 2019 set out additional factors relevant to the giving of notice and consultation between Ministers prior to the exercise of powers under the Act.   

Section 7 - Reconsideration and review of decision

Subsection 44 of the Act provides for the reconsideration and review of certain decisions made under the Act. Under subsection 44(2) of the Act, a notice requesting reconsideration must be given to the Minister in manner a specified in the regulations.

This section provides an applicant for review of a reviewable decision must email their request directly to the responsible Minister's ministerial email account.

Subsection 44(1) of the Act defines what decisions are reviewable decisions for the purposes of the Act. Reviewable decisions include a decision by the Minister under subsection 10(1) to identify bulk customers, including the revocation of a previous decision; a decision under subsection 11(1) to identify essential users, including the revocation of a previous decision; a decision under subsection 12(1) to require a relevant fuel industry corporation to maintain or accumulate fuel reserves; a decision under subsection 12(8) to reduce a fuel reserve requirement; a decision under subsection 13(6) to require a relevant fuel industry corporation submit a revised bulk allocation procedure; and a decision under subsection 44(2) to extend the period by which a person may apply for review of these decisions.

Section 44 of the Act sets out a number of procedural requirements for how requests for review are to be handled by the Minister. It also provides for those dissatisfied with the Minister's review to apply to the Administrative Appeals Tribunal.

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Liquid Fuel Emergency Regulations 2021

This regulation is compatible with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Liquid Fuel Emergency Regulations 2021 (the Regulations) prescribe two matters required by the Liquid Fuel Emergency Act 1984 (the Act) to be set out in regulations. The first is the manner in which the Commonwealth Minister responsible for the administration of the Act, the Minister for Energy and Emissions Reduction, is to provide notice to State and Territory Energy Ministers of an intention to use a power under the Act. The second matter is the manner in which applicants for review of those decisions classed as reviewable decisions by the Act may apply to the Minister for review.

The Regulations also prescribe several additional products to be refined liquid petroleum products for the purposes of section 3 of the Act. Refined liquid petroleum products may be subject to bulk allocation processes and retail rationing in the event the Governor-General proclaims a National Liquid Fuel Emergency. The addition of these products is intended to ensure the bulk allocation and retail rationing powers remain up to date with modern fuel types and usages.

Human rights implications

This regulation does not engage any of the applicable rights or freedoms.

Conclusion

This regulation is compatible with human rights as it does not raise any human rights issues.

 

The Hon Angus Taylor MP

Minister for Energy and Emissions Reductions