{"id":18813,"date":"2022-10-01T15:04:26","date_gmt":"2022-10-01T15:04:26","guid":{"rendered":"http:\/\/legalblog.ie\/?p=18813"},"modified":"2023-10-26T06:59:08","modified_gmt":"2023-10-26T06:59:08","slug":"stock-maintenance","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/stock-maintenance\/","title":{"rendered":"Stock Maintenance"},"content":{"rendered":"

The Petroleum Oils (Regulation or Control of Acquisition, Supply, Distribution or Marketing) (Continuance) Orders made provision requiring a certain percentage of purchase to be made from the state-owned Whitegate refinery. Irish National Petroleum Corporation<\/p>\n

The Irish National Petroleum Corporation Limited Act 2001 provided for the sale of shares in the company to facilitate its privatisation.<\/p>\n

The European Communities (Minimum Stocks Of Petroleum Oils) Regulations 1995 established a National Oil Reserves Agency contemplated by Directives 68\/414\/EEC and 72\/425\/EEC in relation to maintaining 90 days minimum oil reserve. The pre-existing legislation had obliged private importers to maintain stocks. The amended regulations provide for agency costs being met by a levy on sales of oil.<\/p>\n

National Oil Reserves Agency Act 2007 (Returns and Levy) Regulations are made from time to time.<\/p>\n

The 2006 Act allows for emergency measures in the event of a sudden threat to the energy market whether arising from physical safety or security infrastructure or the integrity of the gas or electricity distribution and transmission networks. The Minister may by order direct the CER (CRU) for authorised undertakings to take safeguard measures as may be specified. The measures must be no more than necessary to deal with the particular disturbance or emergency.<\/p>\n

Directive 2009\/28, the Renewable Energy Directive requires EU states to have 10% use of renewables in transport by 2020. Energy (Biofuel Obligation and Miscellaneous Provisions) Act 2010 provides for a biofuel obligation. Suppliers are required to use biofuel in the fuel mix to represent a percentage of their annual fuel sales.<\/p>\n

The initial rate is 4% which is to be increased over time. This is designed to give the biofuel sector certainty in relation to market purchasers to allow them invest and grow. The Act amends the National Oil Reserves Agency Act 2007 to allow the National Oil Reserves Agency to administer the biofuel obligations behalf of the Minister.<\/p>\n

Under the 2007 Act oil companies pay the levy of 2% per litre of petroleum products sold to the agency. The levy may be extended to include biofuels. The levy has been increased and by 2019 it was 11.11%. The specified percentages by volume of motor fuel placed on the market must be produced from renewable sources such as bioethanol and biodiesel.<\/p>\n

Energy (Miscellaneous Provisions) Act 2012 implements Directive 2009\/119\/EC which requires EU states to maintain minimum stocks of crude oil and petroleum products.<\/p>\n

Oil companies that sell road transport fuel must include a volume of biofuels in the sale. They must open an account with NORA. There are provisions for applying to open an account and appeal procedures. The account is managed by NORA electronically. All companies and others with obligations receive a credit with a Certificate for each litre of biofuel sold. A double credit is available for biodegradable residue of manufactured biofuel. They are awarded automatically and electronically.<\/p>\n

NORA advises biofuel account holders at the end of each period of the status of Certificates held. They are obliged to notify advise parties of the compliance requirements of whether they are of and how much they are obliged to pay by way out we have bio charge if they do not discharge the obligation in full with Certificates.<\/p>\n

If an account holder has been awarded Certificates for biofuel use in the State and export biofuel the Certificates are withdrawn.<\/p>\n

The levy is payable on a monthly basis to NORA to cover the cost of the scheme. The Minister calculates the levy due. Interest is paid if not paid when due.<\/p>\n

The Minister may make regulations in relation to returns to be made to NORA by those holding accounts and subject to obligations. Records are to be kept. The Minister may prescribe minimum standards in relation to biofuels consumed or disposed of and required to be met for the purpose of applying for and obtaining a biofuel obligations Certificate.<\/p>\n

The Department may make a contingency plan to allow for prospective oil supply disruption. There is an obligation on all companies to work with the Minister and the Agency in relation to the development of contingency plans. These are obliged to provide information to assist in<\/p>\n

Regulation (EU) 2019\/941 (the Risk Preparedness Regulation) deals with energy security. It sets out steps required if there is an energy crisis. The risk of significant energy shortage is determined by the states and set out in the risk preparedness plans. States must submit risk preparedness plans as to how they fulfil their obligations under the regulation. EirGrid and the CER (CRU after the 2016 Act) are responsible for risk preparedness plans and issues under the regulation.<\/p>\n

European Union (Measures for a High Common Level of Security of Network and Information Systems) Regulations 2018 improve measures to boost Irish network Information Systems so that they are better able to withstand cyberattack. They designate, the authorities, set up computer security incident response teams and provide for national cyber security strategies.<\/p>\n

The European Union (Renewable Energy and Biofuel Sustainability Criteria) (Amendment) Regulations 2018 (S.I. No. 169 of 2018) applied a 7% limit on the contribution crop-based biofuels could make to Ireland\u2019s renewable energy targets. The purpose was to reduce the risk of indirect land use change occurring which itself had implications for greenhouse gas emissions.<\/p>\n

Biofuel obligation applies to all road transport liquid fuels. Entities subject to the legislation may apply for CER (CRU) certificates in aggregate form for petrol and diesel. There are published conversion factors for the fuels and other fuels.
\nEnergy (Biofuel Obligation and Miscellaneous Provisions) Act 2010 confers functions on the CER (CRU) in relation to establishment of a liquid petroleum gas safety framework.<\/p>\n

Oil Emergency Contingency and Transfer of Renewable Transport Fuel Functions Act 2023<\/p>\n

\u00a0<\/strong>Introduction<\/p>\n

The Oil Emergency Contingency and Transfer of Renewable Transport Fuel Functions Act 2023 amends the National Oil Reserves Agency Act 2007; transfers renewable transport fuel functions from the Minister for the Environment, Climate and Communications to the Minister for Transport; and amends the Fuels (Control of Supplies) Act 1971.<\/p>\n

 <\/p>\n

The main purpose of the Act is to strengthen the statutory provisions available to Government to respond to a severe or prolonged oil emergency, including the placing of oil emergency planning on a statutory basis and the reinforcing of the Ministers powers to protect fuel supplies to critical services. The Act also effects the transfer of statutory functions relating to renewable transport fuels, from the Minister for the Environment, Climate and Communications to the Minister for Transport, following the change in policy responsibility which took place in early 2021.<\/p>\n

In addition, the Act provides for the Minister for Transport to make regulations to effect an increase in the use of renewable transport fuels and to incentivise their use for particular purposes, in line with the Renewable Energy Directive and climate policy.<\/p>\n

Amendment of National Oil Reserves Agency Act 2007<\/p>\n

The 2023 Act inserts definitions of \u2018oil emergency plan\u2019, Prior to the approval of a statement of strategy provided to him or her by the National Oil Reserves Agency (the Agency), the Minister shall consult with the Minister for Transport in relation to any information that relates to the functions of the Minister for Transport transferred.<\/p>\n

T<\/em><\/strong>he Minister may provide the Minister for Transport with copies of the audited accounts and Comptroller and Auditor General\u2019s report submitted by the Agency<\/p>\n

If required by the Minister for Transport, the Agency shall provide him or her with information in relation to the performance of its functions and its plans for the future performance of its functions, relating to Part 5A of the Act of 2007 and applicable renewable transport fuel regulations. the information required by the Minister for Transport is be provided in such form and within such period as he or she may direct.<\/p>\n

The \u00a0information transferred to the Minister, by the Revenue Commissioners, may be only used by the Minister for the purposes of the exercise of his or her powers and functions relating to the administration of the levy and the preparation of the Oil Emergency Plan, and shall not be disclosed by the Minister to any other person for any purpose whatsoever.<\/p>\n

The 2023 Act <\/em><\/strong>removes the Minister for Transport, Tourist and Sport, and to include the Minister for Public Expenditure and Reform and the Minister for Environment, Climate and Communications, as persons with whom the Minister for Transport must consult with before making an order in respect of the rate of the renewable transport fuel obligation.<\/p>\n

The Minister for Transport may, following consultation with appropriate persons, make regulations authorising the Agency to issue additional certificates in respect of particular renewable transport fuels and where those fuels are used for specific purposes or means of transport.<\/p>\n

In making regulations, the Minister for Transport is required to have regard to the effect of fuel prices within the State, relevant European Union climate and renewable transport fuel targets and carbon budgets and sectoral emission ceilings prepared and approved under the Climate Action and Low Carbon Development Act 2015.<\/p>\n

The <\/em><\/strong>\u00a0Minister for Transport may, with the consent of the Minister for Finance and the Minister for Public Expenditure and Reform, and following consultation with the appropriate persons, make regulations specifying the minimum percentage volume of renewable transport fuel to be present in fuel disposed of by sale, or otherwise in the State, by a renewable transport fuel obligation account holder.<\/p>\n

In making regulations\u00a0 the Minister for Transport is required to have regard to the effect of fuel prices within the State, relevant European Union climate and renewable transport fuel targets and carbon budgets and sectoral emission ceilings prepared and approved under the Climate Action and Low Carbon Development Act 2015.<\/p>\n

The Act <\/em><\/strong>removes the Minister for Transport, Tourist and Sport, and to include the Minister for Public Expenditure and Reform and the Minister for Environment, Climate and Communications, as persons with whom the Minister for Transport must consult with before making regulations providing for the amount of the buy-out price, or any variation of that amount.<\/p>\n

T<\/em><\/strong>he Minister is to consult with the Minister for Transport before making regulations requiring the Agency and renewable transport fuel obligation account holders to make written returns to the Minister in each month.<\/p>\n

C<\/em><\/strong>ertain oil stocks released by the Agency in an oil emergency are to be exempt from counting towards the calculation of obligated parties renewable transport fuel obligation. The Minister for Transport may, following consultation with the Minister and the Agency, and after having regard to relevant legislation, determine that oil stocks released, or to be released, in cases of particular urgency under section 35 of the Act of 2007, be exempt from the renewable transport fuel obligation.<\/p>\n

Formerly \u00a0the Minister and the Agency may appoint, or revoke the appointment of, authorised officers for the purposes of the Act of 2007. The Minister for Transport may also appoint, or revoke the appointment of, authorised officers for the purposes of the Act of 2007.<\/p>\n

P<\/em><\/strong>owers are granted to authorised officers to now include those necessary to obtain information for the Minister, the Minister for Transport or the Agency, for the performance of their functions under the Act of 2007. In addition, provision is made for information obtained to be given to both the Minister and the Minister for Transport. The Minister or the Minister for Transport may send the information received to the Agency, where he or she considers it appropriate to do so.<\/p>\n

The Minister for Transport \u00a0may make regulations and orders, in accordance with the transfer of renewable transport fuels functions from the Minister to the Minister for Transport. The \u00a0Minister for Transport may make regulations and orders, as applicable,<\/p>\n