Dáil debates

Wednesday, 20 July 2016

Energy Bill 2016: Report and Final Stages

 

7:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I do not propose to accept this amendment. I assume the Deputy is referring to the biofuels obligation scheme rather than the biofuel levy that is payable to obligated parties. As indicated on Committee Stage, I appreciate the Deputy's concerns about the need to review the possible impacts of the biofuels obligation scheme on indigenous producers and also in respect of the growth in the use of biofuels and the food needs of developing countries. However, it would not be appropriate to hardwire into primary legislation measures that can be catered for in a more flexible administrative manner and that would be more appropriate to other bodies. Under the existing legislation, namely, section 31(2) of the National Oil Reserves Agency Act 2007, there is provision for the chief executive of NORA to account to the Oireachtas for the performance of the functions of the agency. Therefore, as I said on Committee Stage, a more user-friendly and immediate approach to address the Deputy's concerns would be for the Oireachtas committee to request the agency to brief it on its functions and its administration of the biofuels obligation scheme, including the issues raised by the Deputy.

On Committee Stage, I also referred to the report that NORA produces each year about how the biofuels obligation scheme is implemented. The latest report for 2015 can be downloaded from NORA's website. I also provided the Deputy with a copy of the report on Committee Stage. It contains detailed information on how the scheme works and outlines in great detail how the sustainability of biofuel supported under the scheme is verified. It also provides a detailed breakdown of the types of biofuels that have been placed on the market, the feedstocks from which these biofuels are produced and the origin of those biofuels.

It should also be noted that the main function of NORA is to arrange the holding of national strategic oil stocks as determined annually by the Minister. Its other function is to administer the biofuels obligation scheme on behalf of the Department. NORA is a small, stand-alone agency that is involved in activities funded by levies imposed on the disposal of oil products and biofuels. I am, therefore, not convinced that NORA would have the capacity or capability - or be the right body - to undertake or commission such a study.

In 2013, the European Commission produced a 177-page report on the impact of biofuel production on developing countries that is in the public domain. This EU report states that it took into account more than 150 previous studies from various sources, including those produced by international organisations, governmental organisations, academia, the private sector and NGOs. The range of impacts that were investigated during the compilation of this report include those of an economic nature, including those on food prices, the land tenure system, investor strategies and business models. The environmental impacts assessed include those relating to land degradation, de-afforestation, water resource management, biodiversity, greenhouse gas emissions and other land use changes. The social impacts that were considered include land and food rights, gender and technology transfer. This EU report goes a long way towards addressing the valid concerns raised by the Deputy. Therefore, I ask her to withdraw this amendment. I will furnish her with a copy of the report to which I refer. If she feels this needs to be revised or updated or that it is missing something, I have no difficulty in taking it up with the European Commission on her behalf and on behalf of the committee and this House.

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