STRATEGIC FRAMEWORK FOR ALTERNATIVE TRANSPORT FUELS by 6BBeI5

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									STRATEGIC
FRAMEWORK FOR
ALTERNATIVE
TRANSPORT FUELS

Paper 2:

Summary of current government policies and programs
relating to alternative transport fuels in Australia


DECEMBER 2011
1.       CURRENT AUSTRALIAN GOVERNMENT POLICY SETTINGS
1.1      Liquid fuel security

In the Australian context, energy security is defined as the adequate, reliable and competitive supply of
energy to support the functioning of the economy and social development, where:

        adequacy is the provision of sufficient energy to support economic and social activity

        reliability is the provision of energy with minimal disruptions to supply


                             1
         competitiveness is the provision of energy at an affordable price which does not adversely
         impact on the competitiveness of the economy and which supports continued investment in the
         energy sector.

The 2011 National Energy Security Assessment (NESA) evaluation for liquid fuels energy security
remains largely unchanged from 2009 and is assessed as high trending to moderate in the long term
as Australia has continued access to highly adequate and reliable supplies of liquid fuels at price levels
that are manageable within the broader economy.
However, the moderate assessment in the long term recognises that continued increase of imported
petroleum products to Australia will place greater reliance on international supply chains, creating a
need for investment in adequate import and storage infrastructure. It also recognises: a likely trend of
high crude oil prices driven by increasing global demand and an increased reliance on more expensive
sources of supply; the significant global investment challenge required to meet rising demand; and the
continued risks of geo-political uncertainty in key oil-producing countries.

1.2      Fuel taxation

Petrol and diesel are subject to an excise and excise-equivalent customs duty rate of 38.143 cents per
litre (cpl). Gasoline and kerosene for use as aircraft fuel are also subject to excise and excise-equivalent
customs duty of 3.556 cents per litre. Since 1995, excise rates for aviation fuels have been set in
accordance with the funding requirements of the Civil Aviation Safety Authority and Airservices Australia
                                                                                           2
to enable provision of aviation services such as traffic control and air safety regulation.

On 29 June 2011, the package of four bills in respect to the future taxation of alternative transport fuels
                        3
attained Royal Assent. The new taxation arrangements apply from 1 December 2011. Table 1
illustrates the new taxation rates. It reflects the 5-year transition of gaseous fuels into the taxation
regime and the Australian Government’s decision to maintain a 10-year moratorium on current taxation
                                                                                4
and grant arrangements for ethanol, biodiesel, renewable diesel and methanol.




1
  The 2009 NESA used the affordability in the definition – for the 2011 NESA, this has been changed to
competitiveness with minimal definitional change to be consistent with the Energy White Paper methodology.
2
  The Australian Competition and Consumer Commission also receives a small percentage of revenue from aviation
fuel excise because of its role in monitoring the aviation industry. Source: 2001 Fuel taxation inquiry background
paper, History of fuel taxation in Australia,
http://fueltaxinquiry.treasury.gov.au/content/backgnd/002.asp#P153_13977.
3
  The new legislation includes the Taxation of Alternative Fuels Legislation Amendment Act 2011, the Excise Tariff
Amendment (Taxation of Alternative Fuels) Act 2011, the Customs Tariff Amendment (Taxation of Alternative Fuels)
Act 2011 and the Energy Grants (Cleaner Fuels) Scheme Amendment Act 2011.
4
  Explanatory memorandum for the Taxation of Alternative Fuels Legislation Amendment Bill 2011, www.aph.gov.au.
                                                                                         5
Table 1: Alternative fuels excise and excise-equivalent customs duty rates

Fuel type                             From 1 Dec         From 1 Jul        From 1 Jul        From 1 Jul        From 1 Jul
                                         2011               2012              2013              2014               2015
                                                                                                               (final rate)
LPG cents per litre (cpl)                  2.5               5.0               7.5               10.0              12.5
LNG cents per kilogram (cpk)              5.22              10.45             15.67              20.9             26.13
CNG cpk                                   5.22              10.45             15.67              20.9             26.13
Ethanol cpl6                             38.143            38.143            38.143            38.143            38.143
Biodiesel cpl7                           38.143            38.143            38.143            38.143            38.143

Under the Ethanol Production Grants Program, grants of 38.143 cents per litre are provided for domestic
production of ethanol. The Energy Grants (Cleaner Fuels) Scheme provides 38.143 cents per litre
grants for the domestic production and import of biodiesel and renewable diesel. These arrangements
will continue until at least 30 June 2021. Fuel tax credits are also available for heavy duty vehicles and
rates vary depending on how the fuel is used for business purposes. It is also affected by the rate of the
road user charge, which is currently 23.1 cents per litre.

Including gaseous fuels in the taxation regime will gain the Budget an estimated $518.5 million over the
                                     8
transitional period to 30 June 2015. Conversely, the 50 per cent discount and phasing arrangements
                                            9
represents a benefit of over $1.6 billion to the gaseous fuels sector (predominantly to liquefied
petroleum gas – LPG) over the transitional period to 30 June 2015. Maintaining the current taxation and
production grant arrangements for biofuels until 30 June 2021 may provide a benefit of approximately
            10
$1.2 billion in the 10-year period relative to their energy equivalent tax rates, if current production
levels are maintained.

A review of the taxation and grant arrangements for compressed natural gas (CNG) and liquefied
natural gas (LNG) will occur after 12 months of operation. A broader review of the arrangements for
gaseous fuels will take place after 1 July 2015. A review of taxation and grant arrangements that apply
to biodiesel, ethanol, renewable diesel and methanol will be undertaken after 1 July 2021.

The Productivity Commission also intends to conduct a review of fuel excise arrangements, including an
examination of the merits of a regime based explicitly and precisely on the carbon and energy content of
fuels.

1.3         Clean Energy Future

On 10 July 2011, the Australian Government announced its Climate Change Plan, Securing a Clean
Energy Future. Further details were announced on 20 September 2011 and the Clean Energy legislative
package passed through the House of Representatives on 12 October 2011. A carbon price will be
applied to around 500 of Australia’s largest carbon emitters from 1 July 2012. For the first three years,
the carbon price will be fixed before moving to a fully flexible price under an emissions trading scheme
from 1 July 2015. In the fixed price stage, starting on 1 July 2012, the carbon price will start at $23 a
tonne, rising by 2.5 per cent a year in real terms. From 1 July 2015, the carbon price will be set by the
                                                                         11
market with a price ceiling and floor applying for the first three years.


5
  These rates are rounded to one decimal place.
6
  Domestic ethanol producers receive grants of 38.143cpl under the Ethanol Production Grants program. These
grants are subject to compatibility with the relevant program’s eligibility criteria and will continue until at least 30 June
2021.
7
  Domestic producers and importers of biodiesel receive grants of 38.143cpl under the Energy Grants (Cleaner Fuels)
Scheme. These grants are subject to compatibility with the relevant program’s eligibility criteria.
8
  Explanatory memorandum for the Taxation of Alternative Fuels Legislation Amendment Bill 2011, www.aph.gov.au.
9
  Treasury estimate. The estimate is calculated in comparison to the total figure payable each year had the final non-
discounted rates been applied from 1 December 2011.
10
   Treasury estimate. The estimate is calculated using the assumption of 350 megalitres of domestic ethanol
production and 95 megalitres of biodiesel (total of domestic production and imports) per annum over a period of 10
years, and the full (i.e. non-discounted) energy equivalent tax rates of 38.143 cpl for biodiesel and 25 cpl for ethanol.
11
   The price ceiling will be set at $20 above the expected international price and will rise by 5 per cent in real terms
each year. The price floor will be $15 and rise annually by 4 per cent in real terms.
As part of the Climate Change Plan, it was announced the carbon price would not apply to household
transport fuel consumption, light vehicle business transport (i.e. vehicles of 4.5 tonnes or less), biofuels,
renewable diesel, and the agriculture, forestry and fisheries sectors. The Australian Government has
announced that it intends that on-road heavy vehicles using diesel will be subject to a carbon price from
1 July 2014, while heavy vehicles using gaseous fuels will be effectively exempt as gaseous fuels excise
rates are lower than the road user charge. Transport fuel used in the rail sector will be subject to carbon
pricing from 1 July 2012.

The Clean Energy Future package also contains a number of programs that may be relevant to
alternative transport fuels or the development of vehicles using alternative transport fuels. These include
the:

•     $10 billion Clean Energy Finance Corporation – this independent entity will invest in the
      commercialisation and deployment of renewable energy, energy-efficiency, and low-pollution
      technologies, including manufacturing businesses that provide inputs for these sectors.

•     $3.2 billion Australian Renewable Energy Agency – this agency will administer government support
      for research and development, demonstration and commercialisation of renewable energy.

•     $800 million Clean Technology Investment Program – this program will provide grants to existing
      manufacturers to invest in energy-efficient capital equipment, low-pollution technologies, processes
      and products.

•     $200 million Clean Technology Food and Foundries Investment Program – this will provide grants
      to existing food and foundry manufacturers to invest in energy-efficient capital equipment, low-
      pollution technologies, processes and products for foundries and less carbon-intensive products for
      food and beverages.

•     $200 million Clean Technology Innovation Program – this grants program will support increased
      research and development, proof-of-concept and early-stage commercialisation activities that lead
      to development of new clean technologies and associated services, including low-emission and
      energy-efficient solutions that reduce greenhouse gas emissions.

•     $32 million Clean Energy Skills Program – this will help educational institutions and industry
      develop materials and expertise to deliver energy-efficiency services, clean energy projects and
      low-pollution products to Australian households, communities and businesses.

The new Australian Renewable Energy Agency (ARENA) will be responsible for a number of current
alternative transport fuels initiatives, including the Australian Biofuels Research Institute and the Second
Generation Biofuels Research and Development Program.

1.4       Fuel tax credits and road user charges

Fuel tax credits rates vary depending on how the fuel is used for business purposes. The rate that can
be claimed is also affected by the rate of the road user charge, which is currently 23.1 cents per litre and
is subject to change. Table 2 lists the current fuel tax credits applicable for each activity or business use.

From 1 December 2011, excise or customs duty will apply to gaseous fuels (LPG, LNG, CNG) used for
transport purposes in most instances. As a result of these changes, fuel tax credits may be claimable
from
for the acquisition, manufacture or import duty paid on gaseous fuels for use in eligible business
           12
activities.




12
  Australian Taxation Office factsheet, Taxation of alternative fuels – Information about the taxation of alternative
fuels and how it affects you, June 2011, http://www.ato.gov.au/content/downloads/bus00284230n73904062011.pdf.
                                                                 13
Table 2: Fuel tax credits – cents per litre

Activity/business use                                                                  Eligible fuel                                      Rate from 1 July
                                                                                                                                          2011

In a vehicle (including emergency vehicles) greater than 4.5 tonne                     All taxable fuels for example, diesel              15.043 *
GVM travelling on a public road (diesel vehicles acquired before                       and petrol.
1 July 2006 can equal 4.5 tonne GVM).

Specified activities eligible since 1 July 2006 in:                                    All taxable fuels – for example, diesel,           38.143
       agriculture                                                                    petrol and fuel oil.
       fishing
       forestry                                                                       {(Not including fuel used in vehicles
                                                                                       greater than 4.5 tonne travelling on a
       mining
                                                                                       public road.)
       marine transport
       rail transport
       nursing and medical.

Burner applications.                                                                   All taxable fuels – for example, diesel,           38.143
                                                                                       petrol, heating oil, kerosene and fuel
                                                                                       oil.


Non-fuel uses such as:                                                                 All taxable fuels – for example,                   38.143
       fuel you use directly as a mould release                                       kerosene, fuel oil, toluene, mineral
                                                                                       turpentine and white spirit.
       fuel you use as an ingredient in the manufacture of
        products.

Packaging fuels in containers of 20 litres or less for non-internal                    Mineral turpentine, white spirit,                  38.143
combustion engine use.                                                                 kerosene and certain other fuels.


Supply of fuel for domestic heating.                                                   Heating oil and kerosene.                          38.143


Electricity generation by a:                                                           All taxable fuels – for example, diesel,           38.143
         commercial generation plant                                                  petrol, heating oil, kerosene and fuel
                                                                                       oil.
         stationary generator
         portable generator.

Emergency vessels.                                                                     All taxable fuels – for example, diesel,           38.143
                                                                                       petrol and fuel oil.

Machinery, plant and equipment used in all other eligible activities                   All taxable fuels – for example, diesel            19.0715 **
since 1 July 2008. Some examples of these activities are:                              and petrol.
        construction
        manufacturing                                                                 (These activities have only been
        wholesale/retail                                                              eligible since 1 July 2008.)
        property management
        landscaping.

*         This rate accounts for the road user charge, which is subject to change.
          Heavy vehicles (that is, those with a GVM greater than 4.5 tonne) travelling on a public road are entitled to the fuel tax credit rate of 38.143 cents
          per litre minus the road user charge.
          From 1 July 2011, the road user charge is 23.1 cents per litre, so the rate for heavy vehicles is 15.043 cents per litre (38.143 - 23.10 = 15.043).
**        The rate of 19.0715 cents per litre is 50% of the full rate of 38.143 cents per litre. The full rate will apply to all these activities from 1 July 2012.




13
     Australian Taxation Office, http://www.ato.gov.au/content/00174722.htm.
1.5          Fuel quality standards
                           14
Except for aviation fuels , fuel quality in Australia is regulated under the Fuel Quality Standards Act
2000 (the Act), which is administered by the Department of Sustainability, Environment, Water,
Population and Communities (DSEWPaC). The Act regulates fuel supplied in Australia to reduce the
adverse effects of motor vehicle emissions on air quality and human health and to facilitate adoption of
new technologies to improve vehicle efficiency. Australian fuel quality standards have been set for
petrol, diesel, biodiesel and Autogas.

The Fuel Standards Consultative Committee (FSCC) was established under the Act as a formal
consultation mechanism. Under the Act, the committee must include one representative from each State
and Territory government, and one representative from the Australian Government. It must also include
at least one person representing fuel producers, a non-government body with an interest in protecting
the environment, and a person representing the interests of consumers. The Minister may also appoint
additional members to the committee.

The existing fuel quality standards have been developed having regard for international best practice,
with input from relevant stakeholders through the FSCC and more broadly, including fuel producers and
vehicle manufacturers. Fuel standards are developed for fuels that are ‘fit-for-purpose’, resulting in
desired engine operability and emission outcomes.

In 2008, the diesel standard was amended to allow up to 5 per cent of biodiesel without a labelling
requirement. While blends containing more than 5 per cent volume of biodiesel can be supplied into the
Australian fuel market, a fuel quality variation must be obtained under section 13 of the Act. These fuel
quality variation approvals can be subject to a number of conditions, including labelling requirements.

The petrol standard provides for an ethanol content of up to 10 per cent ethanol. However, the supply of
petrol containing ethanol is subject to the Fuel Quality Information Standard (Ethanol) Determination
2003, which sets outs labelling requirements for ethanol petrol blends sold in Australia.

The DSEWPaC is currently working with international and national experts and industry to develop fuel
quality standards for diesel and biodiesel blends containing more than 5 per cent and up to 20 per cent
biodiesel as well as for E85 (a high ethanol blend with petrol). A position paper has been released on
setting a fuel quality standard for ethanol (E85) automotive fuel under the Act. The position paper
proposes fuel quality parameters and lists the proposed test methods the DSWEPaC will use to
determine compliance and proposes labelling requirements. Detailed technical background supporting
the proposed parameters and test methods is outlined in the position paper. It is expected
implementation of the new standards will further assist in the roll-out of these higher fuel blends as
consumers are more likely to have more confidence in using a fuel which meets the relevant Australian
standards.

1.6          Vehicle design and emissions standards

The Australian Design Rules (ADRs) are national standards for vehicle safety, anti-theft and emissions.
The ADRs are generally performance-based and cover issues such as occupant protection, structures,
lighting, noise, exhaust emissions, braking and a range of miscellaneous items.

The current standards, the Third Edition ADRs, are administered by the Australian Government under
the Motor Vehicle Standards Act 1989. The Act requires all road vehicles, whether newly manufactured
in Australia or imported as new or second-hand vehicles, to comply with the relevant ADRs at the time
of manufacture and supply to the Australian market. When a road vehicle is first used on Australian
roads, the relevant State or Territory legislation generally requires it continue to comply with relevant
ADRs at the time of manufacture.




14
     Aviation.
The Australian Government's policy is to harmonise the national vehicle safety standards with
international regulations where possible and consideration is given to adopting the international
regulations of the United Nations Economic Commission for Europe (UNECE). Australia is a signatory to
the UNECE 1958 Agreement and the 1998 Agreement. The policy to harmonise is also important to
fulfill World Trade Organisation and Asia Pacific Economic Cooperation commitments.

On 11 June 2011, the Australian Government announced its decision to adopt the Euro 5 and Euro 6
emissions standards for light vehicles. Euro 5 emissions standards will commence for new model
vehicles from 1 November 2013 and for existing models from 1 November 2016. Euro 6 emissions
standards will commence for new model vehicles from 1 July 2017 and for existing models from 1 July
      15
2018.

As part of its Clean Energy Future plan, the Australian Government will introduce mandatory CO2
standards on all light vehicles from 2015. This measure is expected to deliver real cost savings for
motorists by improving fuel efficiency in all categories of new light vehicles. Adopting a mandatory
approach for CO2 emissions is consistent with the approach of other major car manufacturing countries.

1.7       National Ports Strategy

In January 2011, the Australian Government released a proposed National Ports Strategy for
consideration by the Council of Australian Governments (COAG).

The Ports Strategy aims to enhance the performance of Australia's ports to increase national
productivity and economic growth. With the volume of trade moving through Australia's biggest ports
expected to triple over the next 20 years, the strategy will also be vital in the future design, planning and
construction of the nation's port infrastructure. The Ports Strategy includes specific recommendations for
port-related infrastructure regarding: planning for relevant ports and related infrastructure; ensuring
plans can be executed; improvements in landside efficiency and reliability; security and safety; and
clarity, transparency and accountability.
                                                        16
In its communiqué issued on 13 February 2011 , COAG “endorsed the need for a national ports
strategy........ (and)........asked the relevant Ministerial Council to complete an implementation plan for a
final national ports strategy by August 2011 for out-of-session endorsement by COAG”.

1.8       National Land Freight Strategy

On 22 February 2011, the Minister for Transport and Infrastructure released the draft National Land
Freight Strategy Discussion Paper, prepared by Infrastructure Australia and the National Transport
Commission.

Based on the identified weaknesses with Australia's existing infrastructure and regulatory regime, the
draft Strategy proposes the following actions:

         One national, integrated system – identify the existing and yet-to-be built roads, rail lines,
          intermodals, ports and airports which will link to form a workable, truly national freight network.
          As part of this process, consideration will be given to opening up more roads to bigger vehicles,
          establishing dedicated freight routes and separating passenger trains from freight trains.

         Effective local planning – protect the network's land corridors from urban encroachment and
          make sure they are not lost to other activities. In the longer term, such preservation efforts will
          save money, ensure the timely delivery of new or upgraded infrastructure and minimise conflict
          in local communities.

         Long-term, targeted funding – develop and implement a long-term capital works program which
          prioritises projects of greatest strategic important and draws on the financial resources of the



15
   Minister for Infrastructure and Transport media release, New pollution standards for vehicles, 11 June 2010,
http://www.minister.infrastructure.gov.au/aa/releases/2011/June/AA0106_2011.htm.
16
   Available from http://www.coag.gov.au/coag_meeting_outcomes/2011-02-13/docs/communique_20110213.rtf.
          public and private sectors. The Strategy also highlights the benefits and cost-effectiveness of
          using new technology to get the most from existing infrastructure.

         Smarter regulations – reform how our $61 billion transport industry is regulated, with the
          ultimate goal of replacing the existing state-based arrangements with one set of nation-wide
          laws. Based on our work to date, national regulators for maritime safety, rail safety and heavy
          vehicles will be in place by 2013.

         More accountability – implement improved data collection and establish benchmarks to monitor
          performance and make international comparisons.

Over 60 submissions were received in response to Infrastructure Australia's proposal to establish a
national land freight network as part of a land freight strategy. COAG is expected to consider the
                                17
strategy in the next 12 months.

1.9       Anti-dumping and countervailing measures on biodiesel from the USA

Imports of biodiesel from the United States of America have been subject to provisional anti-dumping
measures since 18 October 2010. The investigation by the Australian Customs and Border Protection
Service, initiated after an application made by an Australian biodiesel manufacturer, found that exports
of biodiesel to Australia from the USA had been dumped at a margin of 40 per cent and subsidised at a
margin of 55 per cent.

On 12 April 2011, the Minister for Home Affairs accepted the Australian Customs and Border Protection
Service recommendations to impose anti-dumping and countervailing (anti-subsidy) measures on
biodiesel exported to Australia from the USA. The measures, in the form of a duty, became effective on
18 April 2011 and will apply for five years unless earlier revoked. The operation of the "lesser duty rule"
(i.e. imposing only enough duty to remove the injury caused to the Australian industry) means the duty
collected will be AUD0.18 per litre plus any additional amount payable if the price of biodiesel imports
were to drop below a set floor price.




17
  Infrastructure Australia media release, A National Land Freight Strategy, June 2011,
http://www.infrastructureaustralia.gov.au/media/2011_06_17.aspx.
2.        CURRENT AUSTRALIAN GOVERNMENT INITIATIVES
In addition to the concessional fuel taxation settings which form the main mechanism for government
assistance to the alternative transport fuel industry, the Australian Government supports the production,
distribution and use of alternative transport fuels through a number of programs.

The government’s Clean Energy Future plan contains a number of additional mechanisms the
alternative transport fuels sector may be eligible for. A summary of these measures are in Section 1.3
above and further details are available at: www.cleanenergyfuture.gov.au.

2.1       LPG Vehicle Scheme

The LPG Vehicle Scheme was introduced in 2006 and subsidises the conversion of private vehicles to
vehicles that run on LPG. The scheme is scheduled to conclude by 1 July 2014.

Grants of $2000 are available for the purchase of new vehicles fitted with LPG systems before first
registration. Grants of $1250 are currently available for the conversion of existing vehicles to LPG, which
reduce to $1000 from 1 July 2012. From 1 July 2011, the LPG Vehicle Scheme was capped at 25 000
                                                          18
claims for each financial year for the life of the scheme. The cap forms part of the government’s saving
                                                                              19
measures to support the rebuilding of flood affected areas across Australia.

As at 30 November 2011, over 295 000 conversion grants valued at over $567 million and over 2500
                                                                 20
new LPG vehicle grants valued at over $3.7 million had been paid.

2.2       Second Generation Biofuels Research and Development Program

The Second Generation Biofuels Research and Development Program is a competitive grants program
which supports the research, development and demonstration of new biofuel technologies and
feedstocks that address the sustainable development of a biofuels industry in Australia. The program
provides funding of up to 50 per cent of eligible expenditure. The Minister for Resources and Energy, the
Hon Martin Ferguson announced the successful applicants on 5 August 2009. Funding of $12.617
million has been allocated to six projects over three years from 2009–10 to 2011–12.

The Second Generation Biofuels Research and Development program is currently administered by the
Australian Centre for Renewable Energy (ACRE). Upon its establishment, the new Australian
Renewable Energy Agency (ARENA) will be responsible for a number of current alternative transport
fuels initiatives, including the Australian Biofuels Research Institute and the Second Generation Biofuels
Research and Development Program.

2.3       Australian Biofuels Research Institute

The Australian Government has committed $20 million to establishing a biofuels research institute which
includes $5 million for a biofuels foundation project at James Cook University in Townsville. The new
Australian Biofuels Research Institute (ABRI) will support the demonstration and commercialisation of
advanced biofuels (i.e. those not derived from food feedstocks such as wheat or sugar) based on
technologies being developed internationally and in Australia.




18
   Prime Minister media release, Rebuilding after the floods, 27 January 2011, www.pm.gov.au.
19
   When the cap for a financial year is reached, no more grants can be paid for that year. For example, if the cap is
reached in mid-May 2012 no more grants can be paid until 1 July 2012. This does not mean people who have
converted their cars or bought LPG vehicles after mid-May 2012 will miss out. Applications for the LPG Vehicle
Scheme grant can be made up to 12 months after a car is converted or purchased. Using the example above,
applications for a grant for cars converted or purchased from mid-May 2012 to 30 June 2012 can be made and paid
from 1 July 2012.
20
   AusIndustry, LPG Vehicle Scheme Statistics, November 2011,
http://www.ausindustry.gov.au/EnergyandFuels/LPGVehicleScheme/Pages/LPGVehicleSchemeStatistics.aspx.
An ABRI Establishment Council, consisting of prominent persons from the biofuels research community,
industry and government has been appointed by Minister Ferguson to advise on a number of issues,
including:

         guidance on the conduct of the Advanced Biofuels Study that will inform the priorities of ABRI

         a timeline and work plan to achieve the establishment of ABRI

         the scope and work plan of the $5 million advanced biofuels foundation grant for James Cook
          University

         the terms of reference of an ABRI Advisory Council

         the broad scope of the ABRI funding strategy.

The Advanced Biofuels Study has been completed and the Establishment Council is in the process of
finalising its advice to Government.

2.4       Automotive Transformation Scheme

The Automotive Transformation Scheme (ATS) is the centrepiece of the Australian Government’s A
New Car Plan for a Greener Future and encourages competitive investment and innovation in the
Australian automotive industry to place it on an economically sustainable footing. The ATS was
established by the Automotive Transformation Scheme Act 2009, which commenced on 1 July 2010.
The ATS is providing assistance in the form of cash payments from 2011 to registered participants for
eligible investment and production.

Participants are entitled to receive assistance one quarter in arrears (subject to meeting certain
conditions) for the production of motor vehicles and for investment in research and development, to a
maximum rate of 50 per cent, and investment in plant and equipment to a maximum rate of 15 per cent.
When the decision to abolish the Green Car Innovation Scheme and the Cleaner Car Rebate Scheme
was announced, the Australian Government confirmed the New Car Plan (including the ATS) will
         21
continue.

2.5       Biorefinery Research Institute

In June 2009, the Australian Government commissioned a review of the pulp and paper industry by the
Pulp and Paper Industry Strategy Group. The final report of this review was released in March 2010. An
immediate outcome from the review was the establishment by the Australian Government of the Pulp
and Paper Industry Innovation Council comprising high level representatives from industry, research,
unions and government.

The review recognised the opportunities arising from the emergence of renewable energy and advanced
biomass technologies. It also identified the need for the better coordination and focus of research and
development activities to assist development of biorefinery models suited to Australian feedstocks and
conditions. In particular, the review recommended the Pulp and Paper Industry Innovation Council
develop Terms of Reference for a Biorefinery Research Institute.

The Department of Innovation, Industry, Science and Research (DIISR) is currently working with key
industry, union, research and government organisations to consider issues critical to the success of a
Biorefinery Research Institute including:

         a commercial focus that considers Australian conditions and feedstocks and delivers
          internationally-competitive outcomes within commercial timeframes

         the involvement of a broad range of industries beyond pulp and paper to secure an effective
          support base and capture the full range of opportunities across feedstocks and value chains


21
  Minister for Innovation, Industry, Science and Research media release, New car for a greener future – the journey
continues.
http://minister.innovation.gov.au/Carr/Pages/NEWCARPLANFORAGREENERFUTURETHEJOURNEYCONTINUES.
aspx.
        effective collaboration between industry, government and research institutions including linkage
         with other initiatives and activities already underway.

The DIISR is also considering possible funding models for the establishment and ongoing operations of
the proposed institute.

2.6      National industrial biotechnology strategy and biomass value chain studies

In 2008, the Department of Innovation, Industry, Science and Research (DIISR) released an Industrial
Biotechnology Strategy highlighting the benefits that industrial applications of biotechnology can offer
Australian companies. The strategy is currently being reviewed and updated to reflect recent
international and domestic developments in this space.

In 2010, DIISR commissioned two scoping studies on the viability of Australian tropical (sugar cane) and
temperate (forest and crop residues) biomass value chains. Biomass value chains refer to the use of
biomass (such as crops or timber) as replacement industrial feedstock for commodities traditionally
manufactured using petrochemicals. The studies identified sufficient tropical and temperate biomass for
commercial-scale production of chemicals, materials and biofuels/energy. Biomass-based industries
could create export revenues, reduce Australia’s dependency on petroleum imports and revitalise
existing industries (sugar, forestry, pulp and paper and chemicals). The studies also recognised several
challenges in establishing biomass value chains. The processes involved are technically challenging
and facilities expensive to establish. Moreover, there are existing markets for sugar and forest products
(such as woodchips).

The studies are expected to inform several DIISR portfolio activities including the Review of the
Industrial Biotechnology Strategy, development of Terms of Reference for a Biorefinery Research
Institute by the Paper and Pulp Industry Innovation Council, and engagement with the International
Knowledge Based Bio-Economy (KBBE) Forum, which examines scientific and policy issues regarding
biomass value chains.

2.7      Participation in the Rural Industries Research and Development Corporation work

The Rural Industries Research and Development Corporation led the development of the Primary
Industries Ministerial Council’s research, development and extension (RD&E) plan for biofuels and
bioenergy under the council’s RD&E framework, with assistance from the NSW Department of Primary
Industries. A number of other government agencies, including the Australian Government, were
consulted throughout this process.

The aim of the RD&E plan is to ensure that RD&E resources are used effectively, efficiently and
collaboratively. Duplication and fragmentation of the RD&E system need to be overcome, and national
research capability strengthened if the contribution of bioenergy and biofuels to the energy and transport
sectors are to be optimised. Funding committed to bioenergy and biofuel-related RD&E over three years
from 2007 to 2010 totals over $117 million, with most funding provided by governments (see Figure 1).

A national forum for bioenergy and biofuel RD&E was established to link the Australian and State
governments with the CSIRO, research and development corporations, industry and university sectors
and other identified stakeholders. The national forum, coordinated through Bioenergy Australia, has
worked together to plan strategically for the direction, delivery and sustainable resourcing of the national
RD&E plan for bioenergy and biofuels.
                                                                                      22
Figure 1: Sources of funding for bioenergy and biofuel-related RD&E, 2007–10

          All projects - total funding $117,221,766 (over 3 years)
                                     State Departments
                         Other Gov't
                                            8.1%
                            6.1%                   Univ
                                                            CSIRO
                                                   3.0%
                                                             5.9%

           Private                                         RDC
           25.8%                                           3.0%
                                                             Unknown
                                                              0.9%



                                                            ARC
                                                           19.4%


                     DRET
                     11.5%
                                    AusIndustry
                                      16.2%



2.8      Cooperative Research Centres program

The Cooperative Research Centres (CRC) program is an Australian Government initiative administered
by the Department of Innovation, Industry, Science and Research. The CRC program supports end
user-driven research collaborations to address major challenges facing Australia. CRCs pursue
solutions to these challenges that are innovative, of high impact and capable of being effectively
deployed by end users. The Australian Government has committed more than $3.4 billion in CRC
program funding since its inception in 1991 and participants have committed a further $10.9 billion (cash
and in-kind).

Future Farm Industries Cooperative Research Centre Ltd is an incorporated joint venture playing a
crucial role in developing new and innovative farming systems and technologies to improve the
resilience of Australian broad acre agriculture to climate change, salinity, climate variability and drought
while improving productivity and sustainability. Its headquarters are located at the University of Western
Australia with research, education and training collaborative activities sited at 40 locations across
southern and eastern Australia.

Biofuel production systems are a key focus area. In July 2011 an alliance was established between the
Future Farm Industries CRC, Virgin Australia, the Renewable Oil Corporation and Dynamotive Australia
to turn mallees into a sustainable fuel source for the aviation industry.

As concerns over environmental challenges and energy security drive increased public awareness of
emissions and efficiency. The CRC for Advanced Automotive Technology is also focusing on delivering
smarter, safer, cleaner manufacturing and vehicle technologies – with a clear objective to commercialise
those new technologies in Australia, and to grow the skill base of the Australian industry. One of its four
research programs focuses on powertrains, fuels and emissions with the aim of improving efficiency and
emissions, including by developing powertrains used in hybrid or electric vehicles or based on
alternative fuels.




22
  Rural Industries Research and Development Corporation, Opportunities for Primary Industries in the Bioenergy
sector – a National Research Development and Extension Strategy, August 2011.
3.    STATE AND TERRITORY GOVERNMENT POLICIES AND
INITIATIVES
Alternative transport fuel policies and projects are underway in all Australian states and territories,
including at the local government level.

Trials related to the use of hybrid and electric vehicles and buses are occurring in New South Wales,
Victoria and Queensland, whilst CNG has already been incorporated into the fuel mix for buses in New
South Wales and Queensland.

The Victorian Government is providing funding for research that supports new technologies for Victoria’s
brown coal resources, including gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies.

New South Wales is the only Australian state or territory to have a biofuels mandate. Its fuel ethanol
mandate commenced on 1 October 2007 at 2 per cent of total petrol sales at the primary wholesale
level. This mandate rose to 4 per cent on 1 January 2010 and is currently at 6 per cent. By 1 July 2012
all regular unleaded fuel in New South Wales will be required to be E10. The mandate includes a
suspension provision should prices increase. New South Wales also currently has a 2 per cent biodiesel
mandate which will increase to 5 per cent from 1 January 2012.

On 28 October 2010, the Queensland Government announced it will delay implementation of a 5 per
cent mandate on ethanol-blended fuel (to be introduced from 31 December 2010) due to supply-related
issues and the need to further consider the Australian Government’s proposed excise arrangements for
alternative transport fuels.

The New South Wales and Queensland government fleets are required to use E10 and biodiesel blends
where available. The Queensland, Victorian and Tasmanian government fleet procurement policies
include the requirement to purchase lower emissions vehicles, including hybrids.

Funding for research and development activities related to advanced ethanol and biodiesel fuels are
provided in New South Wales, Victoria and Queensland. Incentives for owners of hybrid vehicles are
also available in Victoria, Queensland and the Australian Capital Territory.

Current major State, Territory and local government initiatives are listed in the tables below. The list was
compiled in consultation with the State and Territory Reference Group.
New South Wales
State Government

Fuel /              Policy / Project                       Description / details
Technology

Alternative fuels   Action for Air, the NSW Government’s    Objective: promote alternative fuels
(general)           25-year Air Quality Management Plan      that produce less volatile air
                                                             pollutants when burnt.

                    Cleaner Fleet Initiative                To support the increased use of low-
                                                             emission vehicles and fuels in the
                                                             NSW Government fleet.

Biofuels            Office of Biofuels                      Office established to oversee the
(general)                                                    implementation of the Biofuels Act
                                                             2007 and biofuel mandate.

                    Biofuels Act 2007                       Legislation to support biofuel
                                                             mandates.

                    Biofuel Sustainability Criteria         Interim implementation of Roundtable
                                                             on Sustainable Biofuels criteria in
                                                             place.
                                                            To be replaced by ISO/AS Biofuels
                                                             Sustainability Standard when
                                                             available.

                    M2006-05 Biofuels and Other             NSW Government fleet required to
                    Alternative Fuels – NSW Government       use E10 and biodiesel blends where
                                                             available.
                    Commitments

                    NCRIS Biofuels Research Pilot Plants    Macquarie University Biofuels Facility
                    and projects                             – enzyme discovery, enhancement
                                                             and expression.
                                                            The University of Sydney
                                                             Hydrothermal Reactor Facility –
                                                             hydrothermal decomposition of
                                                             biomass.
                                                            The University of New South Wales
                                                             (UNSW) Biofuels Laboratory – high
                                                             productivity fermentation processes.



Ethanol             Ethanol Mandate                         2%, 1 Oct 2007.
                                                            6%, 1 Oct 2011.
                                                            All regular grade ULP to be E10,
                                                             1 July 2012.



Biodiesel           Biodiesel mandate                       2%, 1 Jan 2010.
                                                            5% 1 Jan 2012.

Natural Gas         Natural Gas Fuel Systems for Motor     Standards required for registering
(general)           Vehicles: Vehicle Standards             natural gas vehicles.
                    Information No. 16 for Vehicle Owners
                    & Operators in New South Wales
                    Revision 2, April 1998

CNG                 Sydney CNG buses                        563 (25%) State transit buses are CNG-
                                                            fuelled.

Electric            Plug-in hybrid trial                    Trial and evaluation of a converted
                                                            Prius with the Institute for Sustainable
                                                            Futures, UTS.

                    i-MiEV trial                            Participating in the trial and evaluation
                                                            of a Mitsubishi i-MiEV under Australian
                                                            conditions.

Hybrid              C2003-32 Incorporation of               Requirement to increase number of
                    Petrol/Electric Hybrid Motor Vehicles   hybrid vehicles in the NSW Government
                    into the government fleet               fleet.

                    Hybrid bus trial (Sydney)               Twelve-month trial of hybrid buses (with
                                                            different drivetrains) under Sydney
                                                            traffic conditions starting in early 2011.



NSW local governments

Fuel /              Policy / Project                        Description / details
Technology

Alternative fuels   Sustainable Fleet policy                Use of CNG, electric vehicles and
(general)                                                   sustainable biofuels in council fleets.

CNG                 Sydney CNG buses                        See above

Electric            Electric vehicle stations               Installing Electric vehicle recharging
                                                            infrastructure.

Alternative fuels   Fleet Management Services Function      Increased use of alternative fuels and
(general)           Plan 2011/2012                          drivetrains to reduce council
                                                            greenhouse gas emissions, with a
                                                            particular focus on biofuels.
Victoria
State Government

Fuel /              Policy / Project                         Description / details
Technology

Alternative fuels   Energy Innovation Strategy               Science and Technology International
(general)                                                    Partnering Program.

                                                             Support for innovators to attend
                                                             international conferences, etc.

Biofuels            AgriBio, the Centre for AgriBioscience   Joint initiative of the Victorian
(general)                                                    Department of Primary Industries (DPI)
                                                             and La Trobe University Research into
                                                             high-yield biofuel feedstocks.

                    BRC Company                              Plant genomics research, joint initiative
                                                             of the Victorian DPI and La Trobe
                                                             University (La Trobe).

                    Regional Development Victoria –           Facilitating investment in a $400
                    Biofuels Industry Development              million ethanol production facility with
                                                               a 200ML p.a. production capacity
                    Activities
                                                               using waste such as MSW, tyres,
                                                               waste biomass.
                                                              $350 000 for a Regional Biodiesel
                                                               Distribution initiative to establish
                                                               biofuel infrastructure in regional
                                                               Victoria.
                                                              $2 million commitment to BPL toward
                                                               biodiesel blending infrastructure at
                                                               Shell terminal to facilitate distribution
                                                               of Victorian-produced biodiesel
                                                               through Shell distribution channels.
                                                              $750 000 to assist United Petroleum
                                                               to introduce biodiesel blending
                                                               capacity at its Hastings terminal to
                                                               facilitate distribution of Victorian-
                                                               produced biodiesel through United
                                                               distribution channels.
                                                              $1 million to assist in the delivery of
                                                               two regional small-scale closed-loop
                                                               biodiesel production and distribution
                                                               facilities.

                    Victorian BioPortal                      Web portal with access to information
                                                             on projects, researchers, and funding
                                                             opportunities.


                    Conversion of Algal Biomass to           Victorian Government funding from the
                    Sustainable Aviation Fuel project,       Sustainable Energy Research &
                    Monash University                        Development (SERD2) program.
Synthetics   Clean Coal Victoria                     A Victorian Government body which
                                                     aims to maximise Victoria’s coal assets
                                                     including GTL and CTL fuel production.

             Our Coal, Our Future: future            Policy objective is to use Victoria’s coal
             opportunities for brown coal (policy)   assets including GTL and CTL fuel
                                                     production.

             Brown Coal Innovation Australia         Victorian Government-funded research
             (BCIA)                                  with the objective to support new
                                                     technologies for Victoria’s brown coal
                                                     supplies, including GTL and CTL
                                                     technologies.

Electric     Electric vehicle trial                  $5 million, 5-year trial to test electric
                                                     vehicles under Australian conditions in
                                                     fleet, household and business
                                                     applications.

Hybrid       Incentive for hybrid car owners         $100 discount on hybrid annual vehicle
                                                     registration charges.

             Hybrid bus trial                        Trial of hybrid buses in urban public
                                                     transport applications.

             Victorian Government fleet              Purchase of 2000 hybrid Camrys during
             procurement policy                      the 2011 and 2012 financial years.
Queensland
State Government

Fuel /              Policy / Project                        Description / details
Technology

Alternative fuels   Alternative Fuel Industry Development   Strategies to support alternative fuel
– general           Action Plan                             industry development, primarily biofuels
                                                            and natural gas.

                    Draft Connecting SEQ 2031: An           The draft plan has a policy objective to
                    integrated regional transport plan      support low-emission fuels and vehicles
                                                            such as CNG and electric vehicles.


Ethanol             Government E10 policy                   All ULP-fuelled Queensland
                                                            Government fleet vehicles are to use
                                                            E10 where available. E10 use is
                                                            reported to Cabinet every six months.

                    Ethanol Industry Action Plan            Strategies to support the ongoing
                                                            economic viability of Queensland’s
                                                            ethanol industry including actions to
                                                            address environmental impacts and
                                                            transitioning to advanced ethanol
                                                            production.

Advanced            Mackay Renewable Biocommodities         Research and development
feedstocks and      Pilot Plant                             infrastructure for converting cellulosic
aviation fuels                                              biomass into renewable transport fuels
                                                            (bioethanol) and high-value
                                                            biocommodities in an integrated
                                                            biorefinery. Partly funded by the
                                                            Queensland Government.

                    James Cook algal biodiesel project      Partly funded by the Queensland
                                                            Government.
                                                            Research focuses on genetically
                                                            engineering high-yield algal strains and
                                                            trialling a demonstration biorefinery.

                    UQ Sustainable Aviation Fuel project    Joint research project between the
                                                            University of Queensland, Boeing,
                                                            Virgin Blue and the Queensland
                                                            Government. Research aims to develop
                                                            cost-effective algal-derived aviation
                                                            fuels.


CNG                 Brisbane Transport CNG buses            Brisbane Transport has over 80 CNG
                                                            buses in its urban bus fleet. The
                                                            Queensland Government subsidises the
                                                            cost of fuel.
LNG                LNG Industry Blueprint                 Strategic policy to support the
                                                          expansion and ongoing economic
                                                          viability of the natural gas industry in
                                                          Queensland.

Natural gas        Coal Seam Gas (CSG) Regulation         Due to increased community concerns
(general)                                                 about the environmental impacts of
                                                          CSG extraction on water supplies and
                                                          agricultural activities, the Queensland
                                                          Government introduced new regulations
                                                          to try and minimise negative
                                                          environmental impacts while
                                                          maintaining the sustainability of the
                                                          CSG industry.

Electric           Electric Vehicle Roadmap               The Queensland Government is
                                                          currently working on a policy position
                                                          that will support electric vehicle uptake
                                                          in Queensland.

                   Electric Vehicle Trial / Evaluation    The Queensland Government is
                                                          currently undertaking an evaluation of a
                                                          Mitsubishi I-MiEV as part of its car fleet.

                   Incentives for low emission vehicles   Electric vehicles are charged the lowest
                                                          rate of vehicle registration duty (stamp
                                                          duty) and annual vehicle registration
                                                          charges.

Hybrid             Hybrid Bus Trial (ClimateQ)

                   QFleet’s ClimateSmart Action Plan      Requirements to purchase low-emission
                                                          vehicles.

                   Incentives for low emission vehicles   Hybrid vehicles are charged the lowest
                                                          rate of vehicle registration duty (stamp
                                                          duty).

                   Green Taxi Policy (ClimateQ)           15% discount on licence bid if
                                                          proposing to use a low-emission vehicle
                                                          such as a hybrid.




Local Government

Fuel /             Policy / Project                       Description / details
Technology

Electric           Electric Vehicle Trial                 The Brisbane City Council is trialling
                                                          and evaluating three electric vehicles as
                                                          part of its urban car fleet.

CNG                Brisbane Transport’s CNG Buses         Brisbane Transport has over 80 CNG
                                                          buses in its urban fleet. This represents
                                                               implementation of three Brisbane City
                                                               Council policy objectives of reducing
                                                               greenhouse gas emissions, improving
                                                               air quality and reducing the Council’s
                                                               vulnerability to higher oil prices.

Hybrid              Sustainable Fleet purchasing policy        The Brisbane City Council has a
                                                               sustainable fleet purchasing policy that
                                                               requires the purchase of low-emission
                                                               vehicles including hybrids.


South Australia
State Government

Fuel /              Policy / Project                           Description / details
Technology

Alternative fuels   Fleet SA Emissions Reduction Target        Target to reduce the average
(general)                                                      greenhouse gas emissions per
                                                               kilometre travelled by South Australian
                                                               Government passenger and light
                                                               commercial vehicles by 10% by 2014–
                                                               15.

                    Use of biodiesel in the public transport   The public bus fleet operates on B5,
                    bus fleet                                  B20 and CNG. The South Australian
                                                               Government is considering increasing
                                                               the number of buses operating on B20
                                                               compared to B5.

                    Proof-of-concept microalgal biodiesel      The South Australian Research and
                    project                                    Development Institute (SARDI) is
                                                               studying production of biodiesel using
                                                               microalgae. The project is partly funded
                                                               by the SA Premier's Science and
                                                               Research Fund.



CNG                 Public transport bus fleet                 Approximately 25% of the bus fleet
                                                               operates on compressed natural gas
                                                               (CNG).

Electric            Electric vehicle charging stations in      Five recharge stations for electric
                    Adelaide                                   vehicles are located in metropolitan
                                                               Adelaide. Four are Level 1, 15 amp
                                                               charge stations and one is a Level 3
                                                               fast charge station.
Western Australia
State Government

Fuel /              Policy / Project                   Description / details
Technology

Alternative fuels   Strategic Energy Initiative        The West Australian Government is
(general)                                              working with industry and the
                                                       community to develop its Strategic
                                                       Energy Initiative, Energy2031, an
                                                       ambitious and practical plan to meet the
                                                       state’s energy needs over the next 20
                                                       years. The Strategic Energy Initiative,
                                                       which includes transport energy issues,
                                                       will develop:
                                                        an energy vision for 2031, including a
                                                         range of demand scenarios and
                                                         potential supply options
                                                        a set of clear goals to guide
                                                         decisions by policy makers and
                                                         investors
                                                        a range of flexible strategies to allow
                                                         industry and the community to adapt
                                                         to emerging opportunities and
                                                         challenges
                                                        policy and regulatory frameworks to
                                                         promote investment and
                                                         competitiveness and remove barriers
                                                         to technological change.
                                                       A Directions Paper has been released
                                                       and the feedback received during the
                                                       public consultation period is currently
                                                       being reviewed. See
                                                       http://www.energy.wa.gov.au/0/3312/33
                                                       12/strategic_energy_initiative.pm.




                    Low Emissions Energy Development   The Low Emissions Energy
                    Fund                               Development (LEED) Fund supports the
                                                       technological development required to
                                                       cut greenhouse gas emissions from the
                                                       energy sector and contributes to the
                                                       national target of 20% renewable
                                                       energy by 2020.
                                                       On 18 May 2011, the West Australian
                                                       Government called for applications for
                                                       funding under the fourth funding round
                                                       of the LEED Fund. Up to $8 million will
                                                       be available for allocation to suitable
                                                       projects in this round.
                                                         See
                                                         http://www.dec.wa.gov.au/content/view/
                                                         6499/2369/).

Gas                 Domestic gas policy                  The 2006 West Australian Government
                                                         Policy for Securing Domestic Gas
                                                         Supplies seeks to ensure sufficient
                                                         supplies of gas are available to
                                                         underpin Western Australia’s long-term
                                                         energy security and economic
                                                         development, by securing domestic gas
                                                         commitments up to the equivalent of
                                                         15% of LNG production from each
                                                         export gas project.
                                                         This policy is being reviewed as part of
                                                         the Strategic Energy Initiative (see
                                                         above).
                                                         See:
                                                         http://www.dmp.wa.gov.au/documents/
                                                         DomGas_Policy(1).pdf).



Electric Vehicles   WA Electric Vehicle Trial            Eleven West Australian, local
                                                         government and private sector
                                                         organisations are participating in
                                                         Australia’s first fleet trial of electric
                                                         vehicles. See
                                                         http://www.waevtrial.com.au/
                                                         The WA Electric Vehicle Trial is being
                                                         run in parallel with a University of
                                                         Western Australia ARC Linkage Project,
                                                         which will trial an electric vehicle
                                                         recharging network in Perth. See
                                                         http://www.waevtrial.com.au/about/rech
                                                         arging/

Biofuels            Future Farm Industries Cooperative   Future Farm Industries CRC Ltd is an
                    Research Centre (CRC)                incorporated joint venture playing a
                                                         crucial role in developing new and
                                                         innovative farming systems and
                                                         technologies to improve the resilience
                                                         of Australian broad-acre agriculture to
                                                         climate change, salinity, climate
                                                         variability and drought while improving
                                                         productivity and sustainability. Its
                                                         headquarters are located at the
                                                         University of Western Australia with
                                                         research, education and training
                                                         collaborative activities at 40 locations
                                                         across southern and eastern Australia.

                                                         Biofuel production systems are a key
                                                         focus area. In July 2011 an alliance was
                                                         established between the Future Farm
                                                     Industries CRC, Virgin Australia, the
                                                     Renewable Oil Corporation and
                                                     Dynamotive Australia to turn mallees
                                                     into a sustainable fuel source for the
                                                     aviation industry.

                                                     See
                                                     http://www.futurefarmonline.com.au/ind
                                                     ex.htm.

Tasmania
State Government

Fuel /              Policy / Project                 Description / details
Technology

Alternative fuels   Climate Friendly Vehicle Fleet   The Tasmanian Government is also
(general)                                            ordering more hybrid and alternative-
                                                     fuel vehicles for use in its fleet.
Northern Territory
Territory Government

Fuel /              Policy / Project                Description / details
Technology

Alternative fuels   Greening the Fleet Strategy     The Northern Territory Government will
(general)                                           investigate alternative fuels as they
                                                    become available.


Australian Capital Territory
Territory Government

Fuel /              Policy / Project                Description / details
Technology

Electric Vehicles   Better Place – ACT initiative   Development of charge spots and
                                                    battery switch stations using renewable
                                                    energy.

Electric and        Environmentally-based vehicle   Lower stamp duty for the purchase of a
Hybrid vehicles     charges                         new light vehicle, based on the
                                                    combined greenhouse gas and air
                                                    pollution ratings.

CNG                 ACTION bus fleet                The ACTION bus fleet includes 70 CNG
                                                    buses.

								
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