EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 237
Issued by the authority of the Minister for the Environment and Heritage
Subject - Ozone Protection and Synthetic Greenhouse Gas Management Act 1989
Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulations 2006 (No. 1)
Section 70 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 45A(1) of the Act provides, in part, that regulations may be made that:
▪ regulate the sale, purchase, acquisition and disposal of scheduled substances; and
▪ regulate the storage, use or handling of scheduled substances.
Methyl bromide is a scheduled substance and is controlled under Schedule 1 to the Act. Methyl bromide contributes to the depletion of the ozone layer when released into the atmosphere, and most uses of it are emissive by nature. The Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (the Principal Regulations) currently regulate the supply and end use of methyl bromide through record keeping and reporting systems.
Australia’s obligations under the Montreal Protocol on Substances That Deplete the Ozone Layer (the Protocol) ensure that stocks of methyl bromide are only sold and used for authorised purposes. Under the Protocol, non-quarantine and pre-shipment (non-QPS) uses of methyl bromide were phased out from 1 January 2005 except where critical use exemptions are granted by Parties to the Protocol or an emergency use is granted by Parties.
The purpose of the proposed Regulations is to amend the “as in force” date of the 2006 Exemption List for Non-QPS applications of Methyl Bromide (the List) from
1 January 2006 to 15 September 2006. The List details, for 2006, the individual holders of critical use exemptions, their nominated suppliers and the maximum quantity of methyl bromide that the may purchase from that supplier. Along with the regulatory change, the List will be updated to increase Ricegrowers’ Cooperative Limited’s (SunRice) quantity of methyl bromide from 6.150 tonnes to 10.3 tonnes. Rice growers use methyl bromide as a fumigant to control pests in the packaging of rice. Under the Protocol, provision is made that a country can grant an emergency application for methyl bromide. In this instance, the exempt person (SunRice) seeks approval to use more methyl bromide than was originally granted because the 2006 growing season substantially exceeded expectations.
The Regulations make changes of a minor or machinery nature, and will not substantially alter existing arrangements. To this end, consultation was not considered appropriate or necessary,
Details of the Regulations are set out in the Attachment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commenced on 15 September 2006.
Attachment
Details of the Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulations 2006 (No. 1)
Regulation 1 Provides that the Regulations are to be known as the Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulations 2006 (No. 1).
Regulation 2 Provides that the Regulations will commence on 15 September 2006.
Regulation 3 Provides that the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (the Principal Regulations) are amended in accordance with the amendments contained in Schedule 1.
Schedule 1 Item 1 substitutes part of the definition for Non-QPS Exemption List in regulation 200. For the year 2006, the document called ‘Exemption List for Non-QPS Applications of Methyl Bromide’ as in force on 1 January 2006 is replaced by the ‘Exemption List for Non-QPS Applications of Methyl Bromide in 2006’ as in force on 15 September 2006.
This enables the List to be amended and SunRice to be allocated with more methyl bromide than was originally approved in 2005.
Overview
The Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulations 2006 (No. 1) were enacted in 2006 under the authority of the Minister for the Environment and Heritage. These regulations address a specific issue arising from the need to adjust the amount of methyl bromide that could be allocated to SunRice, a rice growers' cooperative, due to an unexpectedly high demand during the 2006 growing season. The regulations aim to align the implementation date of the Exemption List for Non-Quarantine and Pre-Shipment (Non-QPS) Applications of Methyl Bromide from 1 January 2006 to 15 September 2006, allowing for the increased allocation of methyl bromide to SunRice to meet its pest control needs effectively. This legislative change is a response to the dynamic nature of agricultural demands and the need for flexibility in managing controlled substances under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
Scope and Application
The Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulations 2006 (No. 1) amends the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995, which implement the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The Act applies to the regulation of scheduled substances, including methyl bromide, to protect the ozone layer and manage synthetic greenhouse gases in accordance with Australia’s international obligations under the Montreal Protocol. The Act applies to persons and entities involved in the sale, purchase, acquisition, disposal, storage, use, and handling of scheduled substances. The Regulations update the “as in force” date of the 2006 Exemption List for Non-QPS applications of Methyl Bromide from 1 January 2006 to 15 September 2006, thereby reflecting the increased quantity of methyl bromide allocated to SunRice to address an unexpected increase in rice production during the 2006 growing season. The Regulations extend the Act’s application by modifying the Principal Regulations to allow for these changes, while maintaining the overall regulatory framework for the control and management of methyl bromide.
Key Provisions
The Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulations 2006 (No. 1) introduce changes to the regulatory framework concerning the sale, purchase, acquisition, and disposal of methyl bromide, a scheduled substance under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The primary operative sections of these Regulations are Regulation 2, which specifies the commencement date of 15 September 2006, and Regulation 3, which amends the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 to update the "as in force" date of the Exemption List for Non-QPS applications of Methyl Bromide from 1 January 2006 to 15 September 2006. Additionally, the List is updated to increase the quantity of methyl bromide that Ricegrowers' Cooperative Limited (SunRice) may purchase from their nominated supplier from 6.150 tonnes to 10.3 tonnes for the 2006 growing season.
The Regulations impose specific obligations and requirements on the entities governed by them, particularly concerning the record-keeping and reporting systems for the supply and end use of methyl bromide. These obligations include maintaining accurate records of the sale, purchase, acquisition, and disposal of methyl bromide, ensuring that all transactions are for authorised purposes only, and complying with the updated Exemption List. For SunRice, this means they must adhere to the new quantity limits specified in the List and ensure that their use of methyl bromide as a fumigant for rice packaging does not exceed the approved amount.
Failure to comply with the provisions of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and the amended Regulations can lead to significant legal consequences. Under the Act, unauthorised sale, purchase, acquisition, storage, use, or disposal of scheduled substances like methyl bromide can result in civil penalties, including fines. Additionally, any non-compliance with the updated Exemption List can lead to criminal penalties. The maximum penalty for contravening the Act can include substantial fines and, in some cases, imprisonment, depending on the severity and intent of the breach. These penalties underscore the importance of adhering to the regulatory requirements to protect the ozone layer and comply with international obligations under the Montreal Protocol.