Bill
Fuel Security Bill 2021
passed, as at 2021-06-29. Industry, Science, Energy and Resources portfolio.
- Sponsor
- Not recorded
- Portfolio
- Industry, Science, Energy and Resources
Recorded stages
- introduced — 2021-05-26
- second reading — 2021-05-26
- second reading — 2021-06-15
- second reading — 2021-06-16
- second reading — 2021-06-16
- committee — 2021-06-16
- third reading — 2021-06-16
- third reading — 2021-06-16
- third reading — 2021-06-16
- introduced — 2021-06-16
- second reading — 2021-06-16
- second reading — 2021-06-21
- second reading — 2021-06-22
- second reading — 2021-06-22
- committee — 2021-06-22
- third reading — 2021-06-22
- passed — 2021-06-22
- royal assent — 2021-06-29
Divisions
- The majority voted against an amendment to the usual [second reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) motion, which is "*that the bills be read for a second time*" (parliamentary jargon for agreeing with the main idea of the bills). This means the amendment was unsuccessful. ### Amendment text > *Omit all words after "That", substitute "the bill be withdrawn and the Senate calls on the Government to divert the full funding amount to a national electric vehicle strategy that includes:* > > *(a) clear consumer incentives to ensure rapid electric vehicle uptake; and* > > *(b) public investment in a national fast charging infrastructure network.* — 2021-06-22, Senate: negative, ayes 9, noes 34
- The majority voted in favour of reading the bills for [second time](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/), which is parliamentary jargon for agreeing with the main idea of the bills. The Senate can now discuss it in more detail. ### What is the bills' main idea? According to the [bill homepage](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6716), the bills were introduced in order to: * *establish a minimum stockholding obligation for corporate entities that undertake certain activities (broadly, importing and refining) in relation to certain transport fuels to hold a minimum quantity of those fuels nationally; and* * *enable a production payment for refinery operators (referred to as a fuel security services payment) to provide an adjustable cent per litre payment to refineries in return for a commitment to continue refining until at least 30 June 2027.* — 2021-06-22, Senate: affirmative, ayes 33, noes 11
- The majority voted against the [motion](https://www.openaustralia.org.au/senate/?id=2021-06-22.16.1): > *That the Fuel Security Bill 2021 be referred to the [Economics Legislation Committee](https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics) for inquiry and report by 2 August 2021.* This means the motion failed. — 2021-06-22, Senate: negative, ayes 9, noes 33
- The majority voted against [amendments](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/display.w3p;query=Id%3A%22legislation%2Famend%2Fr6716_amend_677f076c-a658-4879-9531-1c892ef859df%22;rec=0) introduced by Victorian Senator [Janet Rice](https://theyvoteforyou.org.au/people/senate/victoria/janet_rice), which means they failed. Senator Rice [explained the amendments](https://www.openaustralia.org.au/senate/?gid=2021-06-22.214.1): > *These amendments basically have two parts. One is essentially that this legislation shouldn't proceed until we've also got an electric vehicles strategy and we've also got something else going on other than ongoing dependence on fossil fuels. The second part of these amendments is that there should be a review of this act by the Productivity Commission to see whether the way the money being spent is the best way to spend the money. Specifically, it would amend the bill to ensure that it doesn't commence until the passage of the Electric Vehicles Accountability Bill 2021. That's the private senator's bill that I am putting forward.* — 2021-06-22, Senate: negative, ayes 9, noes 30
- The majority voted against [amendments](https://www.openaustralia.org.au/senate/?gid=2021-06-22.224.1) introduced by Victorian Senator [Janet Rice](https://theyvoteforyou.org.au/people/senate/victoria/janet_rice) (Greens), which means they failed. ### Amendment text > *(1) Clause 46, page 37 (lines 23 to 27), omit the clause, substitute:* > > *46 Publication of information* > > *(1) The Minister must table in each House of the Parliament, as soon as practicable but no later than 15 sitting days after the end of each financial year, a statement relating to fuel security services payments made during that year.* > > *(2) Without limiting subsection (1), the statement must include the following information:* > >> *(a) the total amount of fuel security services payment paid for quarters ending in each financial year;* >> >> *(b) a list of each FSSP fuel for which a fuel security services payment was paid;* >> >> *(c) for each fuel security services payment paid:* >> >>> *(i) the FSSP fuel for which the payment was paid; and* >>> >>> *(ii) the amount of the fuel security services payment ; and* >>> >>> *(iii) the number of litres of FSSP fuel refined; and* >>> >>> *(iv) the number of cents paid per litre of FSSP fuel; and* >>> >>> *(v) the name of the person paid;* >> >> *(d) the total number of litres of each FSSP fuel for which a fuel security services payment was paid;* >> >> *(e) any other information required by the rules.* > > *(2) The Secretary must publish, on the Department's website, the Minister's statement under subsection (1).* — 2021-06-22, Senate: negative, ayes 11, noes 27
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2021-05-26.
The bill would require industry to hold minimum amounts of key transport fuels and offer payments to refineries to keep operating until mid-2027.
The Minister would set a national consumption target, and each company's obligation would be based on that target and its past operations.
The diesel minimum stockholding obligation would be 40% above pre-COVID-19 levels from mid-2024, and the fuel security services payment would be up to 1.8 cents per litre when refineries are making losses.
- Establishes a minimum stockholding obligation for industry to hold baseline quantities of gasoline, diesel and kerosene.
- Creates a fuel security services payment for refinery operators who commit to refining until at least 30 June 2027.
- Sets the diesel minimum stockholding obligation 40% higher than pre-COVID-19 levels from mid-2024.
- Provides for quarterly payments of the fuel security services payment in arrears.
- Allows recovery of payments if refining stops before the commitment period ends.
Corporate entities that import or refine transport fuels, and refinery operators.
Sources
em
billhome
frl act