Liquid Fuel Supply (Ethanol and Other Biofuels Mandate) Amendment Bill 2015
Plain English Summary
Overview
This bill creates Queensland's first mandatory biofuels targets, requiring larger fuel retailers to ensure 2 per cent of their regular petrol sales are ethanol or other biobased petrol, and fuel wholesalers to ensure 0.5 per cent of diesel sales are biodiesel or other renewable diesel. The mandate is designed to grow Queensland's biofuels industry, create regional jobs, and cut transport emissions while protecting consumer choice by excluding premium unleaded petrol from the target.
Who it affects
Drivers will see more E10 at larger service stations, major fuel retailers and wholesalers face new reporting and sales obligations, and Queensland's ethanol, biodiesel, sugar cane and agricultural sectors gain guaranteed demand for their products.
Key changes
- Larger fuel retailers (10+ stations, or any station selling over 250,000L of petrol per quarter) must meet a 2% biobased petrol target, with penalties up to 2,000 penalty units for repeat breaches
- Fuel wholesalers must meet a 0.5% biobased diesel target covering biodiesel and other renewable diesel from plant oils, animal oils, biomass or waste
- Premium unleaded petrol is excluded from the target so drivers keep their choice at the bowser
- Only biofuels meeting sustainability criteria (set by regulation) count, to avoid harms like fertiliser runoff into the Great Barrier Reef
- All fuel sellers must register, keep sales records for 2 years, and lodge quarterly returns or annual fuel volume reports
- The Minister can grant individual exemptions and suspend the mandate for up to a year during supply shortages or natural disasters
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
Referred to Utilities, Science and Innovation Committee
Committee report tabled
▸Second Reading1 Dec 2015View Hansard
▸16 members spoke16 support
As Minister for Energy and Water Supply, introduced and championed the bill establishing Queensland's first mandatory biofuels targets. Accepted committee recommendations and moved amendments including raising the initial mandate from 2% to 3% and delaying commencement to 1 January 2017. Also supported KAP amendment to increase to 4% after 18 months.
“The biofuels mandates will help Queensland transition to a clean energy economy, grow our biofuels and biomanufacturing sectors and boost jobs across the industry, especially in regional Queensland.”— 2015-12-01View Hansard
As shadow minister, confirmed the LNP would not oppose the bill. Raised concerns about the last-minute increase from 2% to 3% being 'policy on the run' without a regulatory impact statement, but acknowledged the mandate would benefit regional Queensland and the biofuels industry.
“I believe the legislation strikes a balance between supporting the biofuels industry by introducing a mandate, while at the same time allowing sufficient time for fuel retailers and fuel wholesalers to adjust to the changes.”— 2015-12-01View Hansard
As committee chair, outlined the committee's unanimous recommendation to pass the bill. Noted the committee strongly supported increasing the mandate level as soon as practicable and would support 4% even earlier if determined achievable.
“This bill will contribute considerably to regional growth and job creation and help reduce greenhouse gas emissions for motor vehicles.”— 2015-12-01View Hansard
As committee deputy chair, supported the bill and was pleased the minister increased the starting mandate to 3% and delayed commencement to allow more time for implementation and consumer education.
“The other thing that we heard very strongly during the hearings in Mackay and at Parliament House was the real concern from the ethanol industry about whether the lower mandate would actually encourage or inspire any significant new or reinvestment in the ethanol industry.”— 2015-12-01View Hansard
As a committee member, supported the bill and praised the bipartisan spirit of the committee process. Noted the delay to 1 January 2017 allows the percentage to increase to 3%, calling it the best outcome for Queenslanders.
“It shows a willingness from this minister to put away petty Labor versus Liberal politics and actually do the best thing for Queenslanders.”— 2015-12-01View Hansard
As a committee member representing a sugar seat, strongly supported the mandate and acknowledged the former member for Burdekin's early advocacy. Praised the bipartisan approach and thanked the minister for raising the mandate to 3%.
“I think three per cent is a great starting point with the associated time lines that have been adjusted so that we do get it right.”— 2015-12-01View Hansard
As Minister Assisting the Premier on North Queensland, supported the bill for its potential to create regional jobs and noted the importance of sustainability criteria to protect the Great Barrier Reef.
“The message I received was clear: North Queensland needs more jobs. This bill is all about regional growth and job creation and is therefore something I am proud to support.”— 2015-12-01View Hansard
As a committee member representing a sugarcane electorate, wholeheartedly supported the mandate. Welcomed the increase to 3% while noting constituents want a 10% target by 2020 to drive investment.
“I wholeheartedly support the introduction of a mandate for the use of ethanol and other biofuels in Queensland.”— 2015-12-01View Hansard
As a committee member, supported the bill as the best biofuels mandate model in Australia, having learned from the New South Wales experience. Emphasised the centrality of consumer education to the mandate's success.
“I believe that what we have before us is the best model for a biofuels mandate in Australia.”— 2015-12-01View Hansard
A long-term supporter of ethanol mandates who noted the LNP had introduced three previous private members' bills on the subject. Supported the bill but cautioned that the mandate must be achievable by existing production capacity.
“I am a strong, long-term supporter of an ethanol mandate and the establishment of a renewable fuels industry in Queensland.”— 2015-12-01View Hansard
Supported the bill for its potential impact on the Townsville region, citing the proposed Pentland Bio-Energy project which could bring $200 million annually and 650 jobs to Charters Towers.
“If that is not a good thing for the people of Pentland, Charters Towers and the Queensland economy then I will eat my hat.”— 2015-12-01View Hansard
Strongly supported the bill, noting it was the fifth time such legislation had been before the House. Advocated for a higher mandate and moved an amendment during Consideration in Detail to increase the mandate to 4% after 18 months, citing health, fuel security, environmental and economic benefits.
“We are doing a wonderful thing. There might be some challenges and some risks, but certainly the benefits are nothing short of magnificent.”— 2015-12-01View Hansard
As Treasurer, supported the bill for its potential to diversify regional economies and create jobs. Cited the Deloitte Access Economics study predicting $1.8 billion in gross state product and 6,640 jobs over 20 years from biorefining.
“A growing biofuels industry means regional development and diversification of uses for agricultural outputs such as grains and sugar cane.”— 2015-12-01View Hansard
Commended the government's initiative and supported the KAP amendment to increase the mandate to 4% by mid-2018, noting the committee's own report supported this level being achievable.
“I commend the government. As the Treasurer indicated, it has been a steady approach. They have all the stakeholders on board.”— 2015-12-01View Hansard
As Minister for Environment, supported the bill and emphasised the importance of sustainability criteria to avoid unintended environmental impacts, particularly on the Great Barrier Reef.
“We have learned from the experiences of biofuel schemes around the world that sustainability criteria are important to avoid unintended environmental impacts from an expansion in biofuels production.”— 2015-12-01View Hansard
Supported the bill for its potential to add value to sugar cane and grain crops in his electorate, noting the future opportunities for biofuels, bioplastics and other biobased products.
“I am excited for the people of the Mackay region and I am excited for the people of Central Queensland because I can see us moving into an era.”— 2015-12-01View Hansard
▸In Detail1 Dec 2015View Hansard
Inserted definitions of 'low aromatic fuel' and 'low aromatic fuel service station' to exempt retailers selling low-aromatic fuel in communities where petrol sniffing is addressed under the Commonwealth Low Aromatic Fuel Act 2013.
Qualified service station references to 'standard service station' throughout clause 6 so low aromatic fuel service stations are excluded from the biobased petrol mandate.
Increased the starting biobased petrol mandate from 2% to 3% for the first 18 months, with a floor of 3% that cannot be reduced by regulation. This was then further amended by a KAP amendment.
Increased the biobased petrol mandate floor after the initial 18-month period from 3% to 4%, so the mandate rises from 3% to 4% after 18 months and cannot be reduced below 4% by regulation.
Set the biobased diesel mandate floor at 0.5% which cannot be reduced by regulation, and excluded additional fuel types including low aromatic fuel and premium petrol blends from the mandate calculations.
Limited the minister's power to suspend the mandate so that certain suspension grounds cannot result in more than 12 months of suspension in any two-year period, preventing indefinite rolling suspensions.
Corrected the cross-reference for confidentiality protections applying to information in initial fuel volume reports.
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