Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I am pleased to address the House on the Oil Emergency Contingency and Transfer of Renewable Transport Fuels Functions Bill 2023. I thank Senators for the opportunity to present this Bill. The main purpose of the Bill is to strengthen the statutory provisions available to Government to respond to a severe or prolonged oil emergency in the context of ensuring adequate supplies for the emergency and critical services. Progress continues 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. Also, reductions 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. Senators will be aware that the Department of the Environment, Climate and Communications monitors the security of oil supply into the State. In the context of the tightening of supplies in the European oil markets which are primarily caused by the way 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.

An adequate supply of refined product is currently available in the domestic markets and the State's strategic oil reserves provide a strong buffer against an oil emergency. However, the Department, in common with many EU member states and as requested by the European Commission, is currently reviewing and strengthening its oil emergency contingency planning resources.

I will first provide an overview of the most important measures that the Bill addresses before discussing them in more detail. The Bill amends the National Oil Reserves Agency Act 2007 to place a statutory requirement on the Minister to produce an oil emergency response plan. It also provides for the establishment of an oil suppliers' emergency register to allow for timely communication between the Minister and oil suppliers during an oil emergency. Provision is also made for the transfer of oil-related excise data from the Revenue Commissioners to the Minister to assist in oil emergency contingency planning.

The Bill also amends the Fuels (Control of Supplies) Act 1971 to allow the Minister, by order, where there is a fuel emergency, to provide for direction-making powers to ensure the supply of fuel to protect the operation of the electricity grid and other essential services.

The Bill also transfers the statutory functions relating to renewable transport fuels from the Minister for the Environment, Climate and Communications to the Minister for Transport. This is in line with the changes in policy responsibility that took place in early 2021. The Bill also provides for the Minister for Transport to make regulations to effect an increase in the use of renewable transport fuels and to incentivise their use for particular purposes. These provisions are consistent with the aims of the renewable energy directive and they are in line with the fuel quality directive. They will also 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, which contains four Parts and 31 sections. Part 1 contains standard legislative provisions that cover the Short Title of the Bill and its commencement. Part 2 amends the National Oil Reserves Agency Act 2007 and I wish to draw particular attention to the following key provisions in this Part. Sections 4 to 7, inclusive, 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 fuels scheme functions carried out by the National Oil Reserves Agency, NORA. Section 8 provides that the information transferred by the Revenue Commissioners to the Minister may only be used in the preparation of the oil emergency plan or in the exercise of the powers and functions relating to the administration of the NORA levy. 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 and for the purpose of incentivising the use of these fuels in particular sectors and in particular means of transport.

The Minister for Transport may also, with the consent of the Minister for Finance and the Minister for Public Expenditure and Reform, make regulations specifying the minimum percentage volumes of renewable transport fuel to be present in fuel disposed of in the State by renewable transport fuel obligation account holders. Before making these regulations, the Minister for Transport must consult relevant bodies and consider the effect on fuel prices in the State and the requirements of relevant energy and climate plans.

Section 14 provides for an exemption from renewable transport fuel obligations 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 released, or to be released, that cannot be blended with biofuels be exempt from counting towards obligated parties renewable transport fuel obligations.

Section 18 provides that the Minister for Transport may make regulations and orders in respect of the renewable transport fuel obligation and the advanced biofuel obligation.

Section 20 provides for the preparation of an oil emergency plan, to be prepared by the Minister with the assistance of relevant bodies, 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, including the timely release of strategic stocks, a reduction in the consumption of oil and the prioritisation of stocks for the emergency and critical services.

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 it provides for reporting by each company of updated information on an annual basis.

Part 3 provides for the transfer of statutory functions relating to renewable transport fuels from the Minister for the Environment, Climate and Communications to the Minister for Transport. I draw attention to the following provisions of this Part. Sections 23 to 30, inclusive, provide that the necessary functions currently conferred on the Minister under Part 5A of the 2007 Act relating to renewable transport fuels, SI 33 of 2012, SI 160 of 2017 and regulation 4 of 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 relating to the continuation of business and legal proceedings. 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, which currently provides that the Minister may regulate or control the acquisition, supply, distribution or marketing of fuel where there is a Government order in place under section 2 of the Act. This amendment allows a Minister, in addition to have the existing powers contained in the Act of 1971, to also have the power to issue directions to the oil companies to provide fuel on a priority basis to the emergency or critical services, and for electricity generation to protect the stability of the electricity grid.

I advise Senators that I intend to bring forward one amendment on Committee Stage. This will be a technical amendment to section 11 to resolve a formatting error in the labelling of subsections within the section. Within section 11, what is now termed paragraph (c) on page 11, line 19, should in fact be subsection (iii), and what is now termed paragraph (d) should be subsection (iv).

I have outlined the main provisions of the Bill and I have provided additional detail on the sections and I hope this will be of assistance to Senators. I look forward to an informed and meaningful debate and to working constructively with Senators on all sides of the House.