Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to mandate a minimum 2% ethanol content for total petrol
sales in NSW by requiring primary wholesalers of petrol to ensure that the volume
of ethanol sold by them (in the form of petrol-ethanol blend) is at least 2% of the
volume of all petrol sold by them.

The Bill will apply only to sales to a person in NSW or for delivery in NSW.

Outline of provisions

Part 1 Preliminary
Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Clause 3 defines certain words and expressions used in the proposed Act.

Clause 4 defines primary wholesaler to mean a petrol wholesaler who operates or
supplies petrol from a facility that is (or is connected by pipeline to) an oil refinery,
shipping facility or other pipeline connected facility.

Clause 5 limits the application of the proposed Act to sales of petrol by a primary
wholesaler to a person in NSW or for delivery in NSW. Sales by one primary
wholesaler to another primary wholesaler are excluded.

Part 2 Required ethanol content for petrol sales
Clause 6 requires primary wholesalers of petrol to ensure that the volume of ethanol
sold by them (in the form of petrol-ethanol blend) during each relevant period is at
least 2% of the volume of all petrol sold by them in the relevant period. Each 3-month
period starting at the beginning of October, January, April and July is a relevant
period.

Clause 7 requires primary wholesalers to furnish returns for each relevant period,
showing the volume of petrol and ethanol sold in the relevant period.

Clause 8 requires primary wholesalers to keep adequate records of petrol and
ethanol sales to enable them to furnish the required returns of petrol/ethanol sales.

Part 3 Compliance
Clause 9 makes it an offence for a primary wholesaler to fail to comply with the
minimum 2% ethanol sales volume requirement imposed by clause 6, unless the
primary wholesaler can prove that all reasonable steps were taken to comply.

Clause 10 makes it an offence for a primary wholesaler to fail to furnish the required
returns or keep the required records, or to furnish or keep returns or records
containing false or misleading information.

Clause 11 authorises the Minister to publish information about compliance by
primary wholesalers with the requirements of the proposed Act.

Clause 12 provides for the Minister to exempt a primary wholesaler from
compliance with the minimum 2% ethanol sales volume requirement in certain
circumstances.

Clause 13 provides for the Minister to suspend the operation of the minimum 2%
ethanol sales volume requirement in certain circumstances.

Part 4 Enforcement
Clause 14 provides for the appointment of investigators.

Clause 15 gives investigators power to obtain information, records and evidence to
enforce compliance with and investigate possible contraventions of the proposed
Act.

Clause 16 gives investigators power to enter and inspect premises to enforce
compliance with and investigate possible contraventions of the proposed Act.

Clause 17 makes it an offence to hinder, obstruct or provide false information to an
investigator or to fail to comply with a lawful requirement made by an investigator.

Clause 18 deals with the procedure for the seizure of records by an investigator.

Clause 19 provides for the regulations to require primary wholesalers to be
registered under the proposed Act.

Part 5 Miscellaneous
Clause 20 establishes an Expert Panel that is to advise the Minister on any proposed
exemption from or suspension of the minimum 2% ethanol sales volume
requirement.

Clause 21 deals with confidentiality of information obtained in the exercise of
functions under the proposed Act.

Clause 22 protects the State from liability in connection with the operation of the
proposed Act.

Clause 23 provides for the taking of proceedings for offences.

Clause 24 requires the Minister’s consent for the taking of proceedings for an
offence against the proposed Act or regulations.

Clause 25 provides for the issue of penalty notices for offences against the proposed
Act or regulations.

Clause 26 is a general regulation-making power.

Clause 27 makes a consequential amendment to the Fines Act 1996.

Clause 28 provides for a review of the operation of the proposed Act in 3 years.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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