Gas (Other Gases) Amendment Bill

Introduction and First Reading

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (16:02): Obtained leave and introduced a bill for an act to amend the Gas Act 1987. Read a first time.

Second Reading

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (16:03): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

The Government is amending South Australia's gas legislation to include hydrogen and other gases, consistent with changes that are proposed for the national gas regulatory framework [via the Statutes Amendment (National Energy Laws) (Other Gases) Bill 2023].

On 22 November 2019, Energy Ministers endorsed the National Hydrogen Strategy, which sets out government actions to support the development of Australia's hydrogen industry, including to review the application of gas regulatory arrangements to hydrogen.

At the national level, Energy Ministers have agreed that the national regulatory framework should be amended to apply to hydrogen and renewable gases, in addition to natural gas. The proposed amendments specify that the national framework would now apply to 'covered gas', which initially includes natural gas, hydrogen, biomethane, synthetic methane and blends of these gases.

As part of the same Strategy, governments agreed jurisdictions would review their existing legislation to determine whether their respective legal frameworks can support the hydrogen industry.

Upstream activities, such as production and transmission of hydrogen, are or will be able to be regulated in South Australia by the Petroleum and Geothermal Energy Act 2000 and the proposed Hydrogen and Renewable Energy Act.

Together with those arrangements and the proposed national amendments, this Gas (Other Gases) Amendment Bill 2023 will help to ensure that gas regulatory arrangements can apply across the hydrogen industry supply chain in South Australia.

Downstream activities, such as distribution and end use by consumers in their installations and appliances, are regulated by the Gas Act 1997. The Billwould extend the application of the Gas Act 1997 to the same gases that would be regulated by the national energy laws, once amended.

Currently, the Act is limited to regulating gas that consists of hydrocarbons or predominantly of hydrocarbons, such as natural gas and other forms of methane. While the current definition of 'gas' allows the Act to apply to some gas blends that contain a small component of hydrogen, it does not apply to hydrogen on its own or to gas blends composed of a high proportion of hydrogen. This precludes the application of the regulatory regime established by the Act, including the functions and powers of the Technical Regulator and the Essential Services Commission, to hydrogen and 'high level' hydrogen blends used in distribution and retail operations, infrastructure, installations, and appliances.

By referring to 'covered gas' as defined in the National Gas Law (NGL), the Bill enables coverage of the same group of gases that are to be regulated by the national energy laws, including if a new gas type is added to the national laws at a later date.

The Bill inserts a specific definition of 'gas' for the purposes of Part 5A, which regulates retailers operating in South Australia under the National Energy Retail Law (NERL). This is because, while the NERL will be able to apply to all 'covered gases' as defined in the NGL, some types of covered gas, including hydrogen, would only come in scope if prescribed in the National Energy Retail Regulations.

These definition changes will ensure the range of gases to which the Gas Act 1997 applies is consistent and contemporaneous with those regulated by the national framework as the gas industry evolves for the energy transition.

I commend the Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Amendment of Gas Act 1997

3—Amendment of section 4—Interpretation

The amendment to the definition of gas is consequential to proposed amendments to the National Gas Law.

4—Insertion of section 59AA

New section 59AA is proposed to be inserted:

59AA—Interpretation

This section inserts a definition of gas required in connection with proposed amendments to the National Energy Retail Law.

Debate adjourned on motion of Mr Patterson.