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Fuel Quality Standards (Ethanol content) Amendment Bill 2005
Schedule 1—Amendment of the Fuel Quality Standards Act 2000

1  Subsection 21(1)

Insert ‘Subject of section 22A’ before ‘The Minister’.

2  After section 22

Insert

22A  Requirement for ethanol content

             (1)  The volume percentage of cellulosic biomass ethanol which is to be included in motor vehicle fuel supplied for use in Australia is to be as prescribed by the regulations.

             (2)  Regulations under subsection (1) must include a schedule setting out the different percentages to apply at different dates. The schedule must include provision for the required volume percentage to be at least 4% from 1 July 2009; at least 7% from 1 July 2012 and at least 10% from 1 July 2015.

             (3)  Details of how the percentage required is to be measured and applied is to be prescribed by the regulations.

             (4)  In this section cellulosic biomass ethanol¸ means ethanol derived from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, including:

                     (a)  agricultural grain and sugarcane; or

                     (b)  wood and wood residues; or

                     (c)  plants; or

                     (d)  grasses; or

                     (e)  agricultural residues; or

                      (f)  fibres; or

                     (g)  animal wastes and other waste materials; or

                     (h)  municipal solid waste.

22B  Matters to be taken into account before regulations made

                   Before the Governor-General makes a regulation under section 22A:

                     (a)  the Minister must take into consideration:

                              (i)  the available supply of cellulosic biomass ethanol; and

                             (ii)  any potential unfair effect on existing refineries; and

                            (iii)  any seasonal variations in the use of renewable fuels; and

                            (iv)  the report, including any recommendations, of the Fuel Standards Consultative Committee; and

                     (b)  the Minister must be satisfied that the Reid Vapour Pressure of the motor vehicle fuel will be at an acceptable level and, if appropriate, alternative blending, storage or other arrangements may be included in the regulations.

22C  Fuel Credits

             (1)  Refineries, blenders or importers of motor vehicle fuel may be given credits for the production or sale of motor vehicle fuel that contains a percentage of ethanol greater than the percentage required by the regulations in effect at the time of production, importation or sale.

             (2)  In accordance with arrangements prescribed in the regulations, credits received under subsection (1) in a financial year may be counted in assessing compliance with the regulations made under section applying in the following financial year or other period prescribed in the regulations.

             (3)  Credits received under subsection (1) may be transferred or sold to another person.

             (4)  The regulations may provide that receipt or purchase of credits under subsection (1) can be used to offset a failure to comply with a requirement which occurred in a previous year.

22D  Variation of requirements for different areas

             (1)  The regulations may specify a different volume percentage of ethanol content to apply in respect of supplies of motor vehicle fuel in specified areas of Australia.

             (2)  Regulations under subsection (1) must not:

                     (a)  give preference (within the meaning of section 99 of the Constitution) to one State or part of a State over another State or part of a State; and

                     (b)  have an effect equivalent to a value of more than 2% of the annual motor vehicle fuel sales in Australia.

             (3)  Before the Governor-General makes a regulation under subsection (1), the Minister must consult with the Fuel Standards Consultative Committee and be satisfied that the variation is necessary as a remedy for hardship or similar special circumstances.

3  Subsection 24(1)

Insert:

‘and

(ca) before a regulation is made under section 22A’,