Liquid Fuel Emergency Amendment Act 2017

Overview

The Liquid Fuel Emergency Amendment Act 2017 was enacted by the Parliament of Australia to amend the Liquid Fuel Emergency Act 1984, with the primary objective of enabling the Australian government to enter into contracts for the reservation or purchase of oil stocks in line with the Agreement on an International Energy Program, done at Paris on 18 November 1974. This legislative amendment responds to the need for Australia to have a more flexible and responsive mechanism to secure its emergency oil reserves, thereby ensuring energy security and compliance with international agreements. The Act also seeks to clarify and expand the scope of immunity from suit for certain officers and delegates involved in the execution of these powers, reinforcing the legal framework supporting the government's actions in this area.

Scope and Application

The Liquid Fuel Emergency Amendment Act 2017 amends the Liquid Fuel Emergency Act 1984 to update the definition of certain terms and expand the powers of the Secretary to enter into contracts for the reservation or purchase of oil stocks. This Act applies to the Commonwealth of Australia, and it applies to the Secretary and their delegates within the Department, as well as Ministers and other individuals involved in executing the agreements for the reservation or purchase of oil stocks. The Act provides for the reservation or purchase of oil stocks in accordance with the Agreement on an International Energy Program done at Paris on 18 November 1974. The Act also includes provisions for delegation of powers to SES employees or acting SES employees within the Department. The Act came into effect on 1 January 2018. The Liquid Fuel Emergency Amendment Act 2017 extends the application of the Liquid Fuel Emergency Act 1984 by enabling the Secretary to enter into contracts for the reservation or purchase of oil stocks in accordance with the Agreement on an International Energy Program. The Act updates the definition of certain terms, including "Agreement," "emergency reserve commitment," and "oil stocks." The Act also provides for the exemption from suit of Ministers, the Secretary, and their delegates in relation to actions taken under the Act. The Act does not specify any exclusions or thresholds, and its application may be further extended or restricted through subordinate instruments.

Key Provisions

The Liquid Fuel Emergency Amendment Act 2017 amends the Liquid Fuel Emergency Act 1984. The Act introduces several key changes, notably altering the definition of "Agreement" under section 3(1) to specifically refer to the Agreement on an International Energy Program done at Paris on 18 November 1974. This amendment ensures that the Act aligns with the current understanding of the Agreement, as it may be updated from time to time. Additionally, the Act introduces new definitions for "emergency reserve commitment" and "oil stocks," as specified in Article 2 and Article 1 of the Annex to the Agreement, respectively. These definitions clarify the terms under which the Commonwealth can reserve or purchase oil stocks to meet its international commitments. The Act imposes specific obligations on the Secretary, who is authorised to enter into contracts with Australian or foreign entities for the reservation or purchase of oil stocks, as per section 40A. This power enables the Secretary to act on behalf of the Commonwealth in fulfilling its obligations under the Agreement on an International Energy Program. The Secretary may delegate this power to certain employees within the Department, as outlined in section 49(6). This delegation must be in writing and can be given to a SES employee or an acting SES employee, as defined in the Acts Interpretation Act 1901. The delegate must adhere to any directions provided by the Secretary when exercising the delegated powers. Failure to comply with the provisions of the Act may result in various consequences. Although the Act itself does not explicitly detail penalties or specific consequences for breaches, any actions taken under the authority of this Act could be subject to scrutiny under other relevant laws. For instance, breaches of delegation rules or failure to adhere to the terms of contracts entered into under the Act might be subject to internal departmental reviews or legal actions under general administrative law principles. Additionally, the Act provides immunity from suit for the Minister, the Secretary, and any delegates under section 46A, protecting them from certain legal liabilities arising from actions taken in good faith under the Act.