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

I thank the Cathaoirleach and congratulate him on his own elevation. I do not think I have seen him since he was appointed to his new role. I wish him the best of luck with it.

The overall purpose of the Bill is to amend the National Oil Reserves Agency, NORA, Act 2007 to provide for the establishment of the climate action fund on a statutory basis, extend the purposes for which the NORA levy is paid to include funding the climate action fund and provide for the payment of a portion of the levy moneys collected by NORA to the fund. The NORA levy is collected at a rate of 2 cent per litre on most oil products placed on the market and is used to fund the activities of NORA, primarily in the maintenance of the State's strategic oil reserves. The amendments to the NORA Act provided for in the Bill will allow for the repurposing of NORA levy moneys to support projects and initiatives from the climate action fund and contribute to achieving the State's climate action goals in a cost-effective manner. It is appropriate that surplus NORA levy funds, which are levied primarily on the use of road transportation fuels, are repurposed to assist our national decarbonisation effort. This is entirely consistent with the established polluters pay principle.

The Bill also amends the National Treasury Management Agency (Amendment) Act 2000 to provide for NORA and Irish Water as designated bodies to which the National Treasury Management Agency, NTMA, may provide central treasury services. This allows the NTMA to take deposits from or make advances to NORA, or both, as an alternative to the current utilisation of the commercial banks. It also facilitates the restructuring of Irish Water's funding arrangements, whereby existing short-term funding from mainly commercial banks can be replaced with more competitively priced State-funded debt facilities. Provision is also made in the Bill to provide for technical changes to the biofuels obligation scheme and for fixing of the rate of the biofuels levy to a nominal amount to incentivise the use of biofuels.

We need to show increased ambition and leverage every available mechanism at our disposal to ensure we can deliver the type of innovative projects that will place Ireland at the forefront of the green economy and develop our green infrastructure. In doing this we must ensure no region of the State is left behind as Ireland transitions towards a low-carbon society.

This need has come into sharp focus recently with the announcement that Bord na Móna will suspend peat harvesting and concentrate on enhanced peatland rehabilitation. My Department is examining the potential of the climate action fund to support this work, which will rehabilitate bogs that were formerly milled for peat used in power generation, turning them into effective carbon sinks. As well as providing for carbon sequestration, this work will generate employment for workers previously employed in the milling of peat.

While the fund is clearly focused on climate action, it has also considerable potential to support sustained post Covid-19 investments in infrastructure with resulting positive impacts for economic growth and job creation in communities across the State. The fund's first call led to supports of up to €77 million but is expected to leverage a total of €300 million of investment within the State. Projects being supported on the first call include the national roll-out of ESB electric vehicle high-powered charging infrastructure, supported up to €10 million; Dublin City Council's Dublin district heating system, supported up to €20 million; Gas Networks Ireland's green renewable agricultural zero emissions gas, supported up to €8.5 million; Irish Rail's hybrid drive for intercity rail cars, supported up to €15 million; the local authority public lighting energy efficiency project, supported up to €17.5 million; South Dublin City Council's Tallaght district heating scheme, which uses excess data centre energy, supported up to €4.47 million; and the 3 Counties Energy Agency project to increase efficiency in the road haulage sector, supported up to €1.37 million. On the enactment of the Bill, it is planned that the fund's second call for applications will open as soon as possible. Based on expressions of interest made to my Department, there will be considerable demands on the fund to support a range of both community-based projects and large infrastructure projects in both the public and private sectors.

This Bill contains 28 sections. I will explain the key provisions within it. Section 5 amends section 8 of the National Oil Reserves Agency Act 2007, expanding the functions and powers of NORA to enable it to pay levy funds into the climate action fund as directed by the Minister.

Section 13 amends section 37 of the National Oil Reserves Agency Act 2007, expanding the purpose for which the levy is paid from the current purpose of funding the expenses of NORA to also include contributing to the climate action fund. This section also sets the rate of the levy at 2 cent per litre by statute.

Section 14 is an important component of the Bill. It amends the National Oil Reserves Agency Act 2007 to permit the Minister to issue an annual direction to NORA to pay a specified amount of levied moneys into the climate action fund. This section provides that only levy moneys collected and recovered after the legislation has commenced may be paid into the climate action fund. Prior to making a direction, the Minister is required to consult with NORA, the Minister for Public Expenditure and Reform and the Minister for Finance. The Minister is also required in making a direction to be reasonably satisfied that NORA will have adequate financial resources remaining after payment has been made to meet its expenses during the remainder of the financial year. In addition, the Minister must consider the amount specified to be appropriate having regard to any further expenditure which may be required by NORA in subsequent years.

Section 15 fulfils the important function of establishing and providing governance arrangements for the climate action fund. The fund shall be controlled by the Minister or by persons to whom the management and control of the fund has been delegated by order of the Minister. The funds will consist of such accounts that the Minister shall determine as necessary. Provision is made for the submission of the accounts of the fund to the Comptroller and Auditor General for audit and the laying of a copy of his report and the audited accounts before each House of the Oireachtas. The purpose of the fund is outlined, which includes supporting projects, initiatives or research that seek to reduce greenhouse gas emissions, to increase the production or use of renewable energy, or to improve energy efficiency in the State. In addition, provision is made for projects or initiatives to support regions and sectors of the economy affected by the transition to a low-carbon economy. Provision is also made for the Minister to invite proposals to avail of moneys from the fund. Moneys may only be paid from the fund to persons who have conducted projects in accordance with the guidelines specified by the Minister in consultation with the Minister for Public Expenditure and Reform. A committee may be established to advise the Minister on any aspect of his or her functions relating to the fund.

Section 22 makes a technical change to the National Oil Reserves Agency Act 2007 with regard to the administration of the biofuels obligations scheme. The amount of biofuels certificates from the two previous obligation periods which may be used in the current period is reduced from the previous cap of 25% to a new cap of 15% of the obligation.

Section 24 amends the National Oil Reserves Agency Act 2007 by setting the rate of the biofuel levy at one tenth of a cent per litre of biofuel placed on the market. Setting the rate of the biofuel levy to a nominal amount removes an anomaly whereby the levy placed on biofuels is the same as that on petroleum products placed on the market.

Section 28 amends section 18 of the National Treasury Management Agency (Amendment) Act 2000 to provide for the designation of both NORA and Irish Water as designated bodies to which the NTMA may provide central treasury services. This allows the NTMA to take deposits from and to make advances to the agencies as required. NORA will be permitted to deposit moneys with the NTMA as an alternative to its current use of commercial banks. This provision also facilitates the restructuring of Irish Water's funding arrangements.

This Bill takes the opportunity to repurpose surplus NORA levy funds and to make them available to the climate action fund, thereby supporting projects that will assist the State in its progress towards net zero carbon emissions by 2050. It also establishes the climate action fund on a statutory basis, enabling it to both receive levy funds and administer the provision of these funds to projects.The funds offer very real potential to support employment and economic development by expanding the green economy in all of the regions of the State, while at the same time supporting a just transition for regions and sectors formally dependent on high carbon activities. I commend the Bill to the House.