Ozone Protection (HCFC, HBFC and Methyl Bromide) Regulations 1993 No. 359
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 359
ISSUED BY AUTHORITY OF THE MINISTER FOR THE ENVIRONMENT, SPORT AND TERRITORIES
Ozone Protection Act 1989
Ozone Protection (HCFC, HBFC and Methyl Bromide) Regulations
Outline
Section 70 of the Ozone Protection Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act, including regulations prescribing penalties, not exceeding $1,000 in the case of a natural person, or $5,000 in the case of a body corporate, for offences against the regulations.
At the fourth meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer, in November 1992, HCFCs, HBFCs and methyl bromide were added to the list of controlled substances by amendment to the Protocol.
Regulations controlling the import and manufacture of HCFCs, HBFCs and methyl bromide are required so that Australia can ratify the 1992 Amendments to the Montreal Protocol.
Subsection 69A (1) of the Act provides that the Governor-General may make supplementary regulations which define additional controlled (or scheduled) substances to give effect to adjustments or amendments to the Montreal Protocol. Subsection 69A (2) states that supplementary regulations must not come into operation before an adjustment or amendment comes into force in Australia. The 1992 Amendment to the Montreal Protocol is expected to come into force in Australia on 1 June 1994 and the proposed regulations will not commence until that date.
The major objective of the Regulations is to implement controls on HBFCs and HCFCs to enable Australia to ratify the 1992 Amendments to the Montreal Protocol.
The timing of the Regulations is as follows:
• The 1992 Amendment to the Montreal Protocol is expected to come into force in Australia on 1 June 1994;
• Parts 1, 3 and 4 of the proposed Regulations, which include licensing and reporting requirements would commence on 1 June 1994;
• Part 2 of the proposed Regulations, which bans trade in HBFCs with nonProtocol countries, commences on 1 January 1995, the date that HBFC controls commence internationally;
• The import and manufacture of methyl bromide without a licence is banned from 1 January 1995, the date that methyl bromide controls commence internationally;
• The import and manufacture of HCFCs without a licence is banned from 1 January 1996, the date that HCFC controls commence internationally; and
• As the Protocol may allow for essential applications of HBFC to continue after the trade ban is applied internationally from 1 January 1996, provision is made for import and manufacture to continue under such circumstances.
Costs of phasing out HCFCs, HBFCs and methyl bromide can be minimised with technology transfer, training and education. Consultations with industry are ongoing. In addition:
• Control of these substances will provide direct health and environmental benefits to all Australians, through reversal of global ozone depletion;
• Controls of the form proposed are required to enable Australia to discharge its international obligations under the Montreal Protocol;
• Australia is not applying controls on the substances unilaterally. All developed countries are expected to implement similar controls;
• HBFCs are not used in Australia;
• Alternatives to all of the controlled substances are expected to be commercially available by the time the impact of the controls is felt. The cost of alternatives is expected to decline as demand increases;
• HCFCs will be phased out over many years to enable a reasonable economic return to be obtained from long lifetime equipment; and
• The methyl bromide controls will create an opportunity for horticulturists to apply more sustainable methods of pest and disease control, and to apply target specific biocides instead of broad spectrum fumigants like methyl bromide, which also kill beneficial organisms and are hazardous from the perspective of occupational health and safety.
Details of proposed regulations are as follows:
Regulation 1 Name of Regulations.
Regulation 2 Commencement dates. Proposed Regulations 18 and 19 commence on 1 January 1995 and the remainder of the proposed regulations commence on 1 June 1994.
Regulation 3 Definitions.
Regulations 4-6 Prohibit import or manufacture of HCFCs, HBFCs or methyl bromide on or after 1 January 1996 without a licence.
Regulations 7-17 Deal with the details of licensing for import and manufacture of HCFCs, HBFCs and methyl bromide. eg. format of the application form, information to be provided by applicants, terms and conditions of licence, duration, renewal, cancellation and surrender of licences.
Regulations 18-19 Prohibit HBFC imports from and exports to non-protocol countries from 1 January 1995.
Regulation 20 Requires HBFC importers, exporters and manufacturers to report quantities imported, exported and manufactured in 1989 to the Minister for Environment, Sport and Territories ( the Minister).
Regulation 21 Provides that the Minister publish quantities of HBFC imported, exported and manufactured in 1989 in the Gazette.
Regulation 22 Requires methyl bromide importers, exporters and manufacturers to report quantities imported, exported and manufactured in 1991 to the Minister.
Regulation 23 Provides that the Minister publish quantities of methyl bromide imported, exported and manufactured in 1991 in the Gazette.
Regulation 24 Requires licensees to keep records of imports, exports and manufacture of all schedule 1 substances.
Regulations 25-27 Requires methyl bromide, HBFC and HCFC importers, exporters and manufacturers to report the following information to the Minister: Quantities imported, manufactured, exported or destroyed from 1 January 1996 for HCFCs and HBFCs and 1 January 1995 for methyl bromide; and the country of origin of all imports.
Regulation 28 Requires HCFC importers and exporters to lodge a report with the Minister which specifies quantities of recycled HCFCs imported or exported from 1 January 1996.
Regulation 29 Provides for penalties under the Crimes Act 1914 for false or misleading statements in an application for a licence.
Regulation 30 Provides for review of a Ministerial decision by the Administrative Appeals Tribunal.
Schedule 1 Lists substances to be controlled.
Schedule 2 Provides details of the following prescribed forms:
Form 1- Application for a licence to import or manufacture HCFCs, HBFCs or methyl bromide;
Form 2- Licence to import or manufacture HCFCs, HBFCs or methyl bromide.
Form 3- Application for renewal of a licence to import or manufacture HCFCs, HBFCs or methyl bromide.
Penalties consistent with section 70 of the Act are imposed for breach of Regulations 4 to 28.