Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I move: “That the Bill be now read a Second Time.”

I very much appreciate this opportunity to introduce this Bill. It is probably not likely to take up the full 20 minutes allocated. I am very pleased to address the House on Second Stage of the Bill and to be joined by officials from the Department. The Bill is largely administrative and procedural. It provides for contingencies in the event of an emergency rather than introducing major new policy or other provisions. It is important all the same because, as Deputies will be aware, progress is being made and will continue to be made in increasing the use of renewable fuels and electrification within transport and in replacing oil use in heating in accordance with the climate action plan, which we have just discussed. Reduction in petroleum product use will be further driven by the carbon budgets and sectoral emissions ceilings.

Notwithstanding this progress, the State continues to be reliant on oil to a significant extent. As Deputies will be aware, my Department monitors the security of oil supply into the State in the context of the tightening of supplies in European oil markets primarily caused by the war in Ukraine. This monitoring of the oil markets is currently being undertaken in accordance with the national energy security framework through the oil supply subgroup of the energy security emergency group. This subgroup is chaired by the Department and includes representatives from the National Oil Reserves Agency, NORA, the Department of Transport and the main oil importers into the State. Deputies should note that an adequate supply of refined product is currently available in domestic markets and the State's strategic oil reserves provide a strong buffer against any oil emergency. However, my Department, in common with many European member states and as requested by the European Commission, is currently reviewing and strengthening its oil emergency contingency planning measures. The main purpose of the Bill is to strengthen the statutory provisions available to the Government to respond to a severe or prolonged oil emergency in the context of ensuring adequate supplies for emergency and critical services.

This Bill contains four Parts and 31 sections. It amends two Acts: the National Oil Reserves Agency Act 2007 and the Fuels (Control of Supplies) Act 1971. The Bill also brings into effect the transfer of statutory functions relating to renewable transport fuels from the Minister for the Environment, Climate and Communications to the Minister for Transport following the change in policy responsibility that took place in early 2021. In addition, the Bill provides for the Minister for Transport to make regulations to affect an increase in the use of renewable transport fuels in line with the renewable energy directive.

I will provide a brief overview of the most important measures the Bill addresses before discussing them in more detail. As Deputies may be aware, there is currently no statutory requirement for the Minister to conduct oil emergency contingency planning, nor is there any provision specifying the measures to be included in any plans produced. This proposed legislation amends the 2007 Act to place a statutory onus on the Minister to produce an oil emergency contingency plan and specifies the main elements to be contained within the plan. I am also making provisions requiring co-operation from relevant public bodies and oil companies with the Minister in the making of the plan and in response to any oil emergency. These provisions will facilitate the further development of oil emergency contingency planning.

The Bill also provides for the establishment of a petroleum register. This register will provide the necessary contact information to allow for timely communication between the Minister and the oil companies, the operators of service stations, and other oil wholesalers and retailers operating within the State, in the event it is ever necessary to activate emergency plans. I am also making provisions for the transfer of excise information relating to the disposal by sale of mineral oil within the State from the Revenue Commissioners to the Minister. This data will provide a more complete understanding of oil sales and consumption within the State, including within the service station network, and will assist across a range of oil emergency contingency planning activities.

This legislation amends the 1971 Act to provide for the overall strengthening of the Minister's powers to respond urgently to a fuel emergency. The amendments allow the Minister, by order, where there is a Government order in place during a severe fuel emergency, to provide for direction-making powers to regulate, restrict or control the acquisition, supply, distribution, marketing or use of fuels in order to protect the operation of the electricity grid and other essential services. In addition, I am making provision for the exemption by the Minister for Transport of NORA's strategic stocks, not capable of being blended with biofuels and released to rectify a shortage in the markets, from counting towards a renewable transport fuels obligation. This is being done to remove an anomaly whereby currently strategic stocks that cannot be blended with biofuels nonetheless attract a blending obligation and, to ensure that such stocks will be placed quickly by the oil companies onto the market in an emergency, to protect the operation of critical services.

In 2021, the policy responsibility for renewable transport measures transferred from the remit of the Minister for the Environment, Climate and Communications to the Minister for Transport. In order to affect the necessary transfer of relevant statutory provisions, including responsibility for the renewable transport fuel obligation scheme, the Bill provides for the transfer of necessary functions under the relevant sections of the 2007 Act and the separation of relevant ministerial responsibilities for operational reasons. Functions within a number of relevant regulations will also be transferred to the Minister for Transport.

The Bill also provides for the Minister for Transport to make regulations to affect an increase in the use of renewable transport fuels and to incentivise their use for particular purposes in line with the renewable energy directive and climate policy. This includes providing for the Minister for Transport to make regulations to provide for the issuing by NORA of additional certificates under the renewable transport fuel obligation scheme to incentivise the use of certain renewable transport fuels. Prior to making such regulations, the Minister for Transport is required to consult relevant Ministers and bodies. In addition, and subject to the consent of the Ministers for Finance and Public Expenditure and Reform, the Minister for Transport may make regulations specifying the minimum percentage volume of renewable transport fuel to be present in fuel disposed of by sale or otherwise in the State by a renewable transport fuel obligation account holder. Deputies will note that these provisions are consistent with the aims of the renewable energy directive, are in line with the fuel quality directive and enable the implementation of the E10 petrol grade in the State aligning fuel grades with those available in Northern Ireland.

I now propose to give a more detailed overview of the Bill in each of its four Parts. Part 1 contains standard legislative provisions that cover the Short Title of the Bill and its commencement. Part 2 amends the 2007 Act. I will draw particular attention to the key provisions of Part 2. In sections 4 to 7, we provide for information sharing and co-operation between the Minister for the Environment, Climate and Communications and the Minister for Transport relating to the governance of the renewable transport fuel scheme functions carried out by NORA. These sections also include a requirement for NORA to provide the Minister for Transport with the relevant information relating to its operation of the scheme.

Section 8 provides that information transferred by the Revenue Commissioners to the Minister may only be used in the exercise of his or her powers and functions relating to the administration of the NORA levy, or in the preparation of the oil emergency plan, and shall not be disclosed by the Minister to any other person for any other purpose whatsoever.

Sections 10 and 11 provide that the Minister for Transport may make regulations authorising NORA to issue additional certificates in respect of renewable transport fuels for the purpose of incentivising the use of these fuels in particular sectors and means of transport. The Minister for Transport may also, with the consent of the Ministers for Finance and Public Expenditure and Reform, make regulations specifying the minimum percentage volume of renewable transport fuel to be present in fuel disposed of by sale or otherwise in the State by a renewable transport fuel obligation account holder. The Minister for Transport must consult appropriate bodies as set out in the legislation before making these regulations and consider the effect on fuel prices in the State and the requirements of relevant energy and climate plans, carbon budgets and sectoral emissions ceilings.

Section 14 provides for an exemption from the renewable transport fuel obligation in cases of particular urgency. The Minister for Transport, following consultation with the Minister and NORA, and having regard to relevant climate legislation, may determine that oil stocks to be released that cannot be blended with biofuels be exempt from counting towards obliged parties' renewable transport fuel obligation in cases of particular urgency. Section 18 provides that the Minister for Transport may make regulations and orders in respect of the renewable transport fuel obligation and advanced biofuel obligation.

Section 20 provides for the preparation of an oil emergency plan, to be prepared by the Minister with the assistance of NORA, oil companies, oil consumers and such public bodies as the Minister considers appropriate, and for the plan to be implemented in the event of an oil supply disruption. Provision is made for the plan to contain certain measures to be implemented by the Government, as required, including the timely release of strategic stocks, a reduction in the consumption of oil and the prioritisation of stocks for emergency and critical services. The requirement to include these measures arises from the obligations on member states to conduct the emergency planning contained in the EU oil stocks directive.

Section 21 provides that the Minister shall establish and maintain a register of oil companies to be known as the petroleum register. It specifies the information to be contained in the register and provides for annual reporting by each company of updated information.

Part 3 provides for the transfer of statutory functions relating to renewable transport fuels under the 2007 Act from the Minister for the Environment, Climate and Communications to the Minister for Transport. I will draw attention to a number of the provisions of Part 3.

Sections 23 to 30, inclusive, provide that the necessary functions relating to renewable transport fuels currently conferred on the Minister under Part 5A of the Act of 2007, SI 33 of 2012, SI 160 of 2017 and regulation 4 as amended by SI 350 of 2022 are transferred to the Minister for Transport on the vesting day. Provision is made for the transfer and continuation of various administrative matters, including those relating to the continuation of business and legal proceedings, and to ensure that relevant statutory instruments made or granted previously are considered in future to be made by the Minister for Transport. Provision is also made for the appointment of a vesting day, subsequent to the commencement of the Act.

Part 4 amends the Fuels (Control of Supplies) Act 1971. Section 31 amends section 3 of the Act of 1971. Section 3 currently provides that where there is a fuel emergency necessitating a Government order under section 1 of the Act, the Minister may, by order under section 3, provide for the regulation or control of the acquisition, supply, distribution or marketing of the type or types of fuels to which the Government order relates. In this Bill, I am also providing that the Minister may, within such an order under section 3, provide for the necessary powers to, by direction in writing, control such oil supplies in this way where it is absolutely necessary to quickly divert oil stocks to generate electricity in the event of a significant gas disruption or to protect the operation of services deemed by the Minister to be critical.

The legislation before the House today also includes some consequential and other technical amendments but the provisions I have outlined are the principal issues. To give the broader context, my understanding is that the need for this legislation and the amendments I have set out, which are, as I have said, largely technical in nature, mainly came from work done in my Department and relevant agencies in the last year to prepare for an oil emergency arising due to the global events with which we are all very familiar, including the sanctioning of Russian oil and gas imports into the EU. It is not that we see this as an immediate possibility but that we are preparing for any such contingency. The lesson from some of the exercises that were done when we were assessing our preparedness was that some further tightening of the legislation was needed so that, if such an emergency were to take place, the Minister of the day would have all powers necessary to protect our society and the critical supply of energy to key sectors within our country. As I have said, it is in a spirit of caution and in preparation for such an eventuality rather than in any expectation of it that the legislation is presented. I commend the legislation and hope for the agreement of the House to the question.

See this speech in context