The Parliament of Queensland enacts—Part 1Preliminary1Short titleThis Act may be cited as the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 2023.2CommencementThis Act commences on a day to be fixed by proclamation.Part 2Amendment of Gas Supply Act 20033Act amendedThis part amends the Gas Supply Act 2003.Note—See also the amendments in schedule 1.4Amendment of long titleLong title, ‘processed natural gas’—omit, insert—covered gases5Amendment of s 3 (Main purposes of Act)(1)Section 3(a), from ‘processed’—omit, insert—supply of covered gases; and(2)Section 3(b)(i), ‘processed natural gas’—omit, insert—covered gases6Amendment of s 4 (Gas-related matters to which Act does not apply)Section 4(1)(a), (b) and (c)(i), ‘processed natural gas’—omit, insert—covered gases7Replacement of ch 1, pt 3, div 2, sdiv 2 (Processed natural gas)Chapter 1, part 3, division 2, subdivision 2—omit, insert—Subdivision 2Covered gases9What is a covered gas(1)A covered gas is a primary gas or a gas blend.(2)A primary gas is—

(a)processed natural gas; or

(b)hydrogen; or

(c)biomethane; or

(d)synthetic methane; or

(e)a gas, prescribed by regulation, that is suitable for consumption.

(3)Processed natural gas is a substance that—

(a)is in a gaseous state at standard temperature and pressure; and

(b)consists of hydrocarbons that occur naturally and other substances; and

(c)is more than half, by volume, methane; and

(d)has been processed to be suitable for consumption.

(4)In this section—biogas means a gas derived or recovered from organic matter other than fossilised organic matter.biomethane means a substance—

(a)that is in a gaseous state at standard temperature and pressure; and

(b)the principal constituent of which is methane; and

(c)that is produced by refining biogas; and

(d)that is suitable for consumption.

gas blend means primary gases that have been blended together to be suitable for consumption.synthetic methane means a substance—

(a)that is in a gaseous state at standard temperature and pressure; and

(b)the principal constituent of which is methane; and

(c)that is produced by the methanation of carbon dioxide; and

(d)that is suitable for consumption.

8Amendment of s 28 (Requirements for application)(1)Section 28, after paragraph (a)—insert—

(aa)state the type of covered gas for the distribution authority; and

(2)Section 28(aa) and (b)—renumber as section 28(b) and (c).9Amendment of s 29 (Public notice by regulator and submissions)Section 29(2)(a)—insert—

(v)the type of covered gas for the distribution authority; and

10Insertion of new ch 7, pt 4Chapter 7—insert—Part 4Transitional provisions for Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 2023342Definitions for partIn this part—amendment Act means the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 2023.former, for a provision of this Act, means the provision as in force from time to time before the commencement.new, for a provision of this Act, means the provision as in force from the commencement.343Existing distribution authorities(1)This section applies to a distribution authority that was in effect immediately before the commencement.(2)Despite new section 21, on the commencement, the distribution authority does not authorise its holder to transport, or provide customer connection services relating to, a covered gas that is hydrogen or a gas blend.(3)However, subsection (2) does not apply to the extent the distribution authority is amended under chapter 2, part 1, division 3 so it applies in relation to a covered gas that is hydrogen or a gas blend.344Insufficiency of supply declarations(1)This section applies if, immediately before the commencement, an insufficiency of supply declaration under former section 251 was in effect.(2)On the commencement, former chapter 4, part 5, division 1 continues to apply in relation to the supply declaration.345Insufficiency of supply directions(1)This section applies if, immediately before the commencement, an insufficiency of supply direction under former section 254 was in effect.(2)On the commencement, former chapter 4, part 5, division 2 continues to apply in relation to the supply direction.Part 3Amendment of Petroleum and Gas (Production and Safety) Act 200411Act amendedThis part amends the Petroleum and Gas (Production and Safety) Act 2004.Note—See also the amendments in schedule 1.12Amendment of s 3A (Secondary purpose—facilitation of Geothermal Energy Act 2010 and Greenhouse Gas Storage Act 2009)(1)Section 3A, heading—omit, insert—3AOther purposes of Act(2)Section 3A(1)—omit, insert—(1)Other purposes of this Act are—

(a)to facilitate the operation of the Geothermal Energy Act 2010 (the Geothermal Act) and the Greenhouse Gas Storage Act 2009 (the GHG storage Act); and

(b)to facilitate and regulate, as a key authorised activity for pipeline licences, the construction and operation of pipelines for regulated hydrogen in a way that is safe, effective and efficient.

13Amendment of s 11 (Meaning of LPG and fuel gas)(1)Section 11, heading—omit, insert—11Meaning of LPG, fuel gas and hydrogen gas blend(2)Section 11(2)—insert—

(ba)hydrogen, or a hydrogen gas blend, used or intended to be used as a fuel to produce heat, light or power; or

(3)Section 11(2)(c), ‘under a’—omit, insert—by(4)Section 11(2)(ba) and (c)—renumber as section 11(2)(c) and (d).(5)Section 11—insert—(2A)A hydrogen gas blend is processed natural gas and hydrogen that have been blended together.(6)Section 11(3), definition processed natural gas, paragraph (b)—omit, insert—

(b)consists of hydrocarbons that occur naturally and other substances; and

(7)Section 11(2A) and (3)—renumber as section 11(3) and (4).14Insertion of new s 11AAfter section 11—insert—11AMeaning of regulated hydrogenRegulated hydrogen is—

(a)hydrogen; or

(b)a hydrogen gas blend; or

(c)another substance prescribed by regulation that is involved in, or produced for, a process related to the storage or transport of hydrogen.

15Amendment of s 16 (What is a pipeline)Section 16(1)(a), ‘or prescribed storage gases’—omit, insert—, prescribed storage gases or regulated hydrogen16Amendment of s 16A (What is a distribution pipeline)(1)Section 16A(1)(a) and (b)—omit, insert—

(a)a pipeline that transports fuel gas as part of a reticulation system within a gas market; or

(b)a single point-to-point pipeline that transports fuel gas to—

(i)a place other than a major user facility; or

(ii)another single point-to-point pipeline that transports fuel gas to a place other than a major user facility.

(2)Section 16A(3), definition major user facility, after paragraph (a)—insert—

(aa)a facility operated as a place of export for fuel gas, including, for example, a port; or

(ab)a facility operated for the liquefaction of fuel gas before it is transported to a facility mentioned in paragraph (b); or

(3)Section 16A(3), definition major user facility, paragraphs (aa) to (e)—renumber as paragraphs (b) to (g).17Amendment of s 399 (What is pipeline land for a pipeline licence)Section 399(3), ‘to transport petroleum’—omit.18Amendment of s 409 (Requirements for making application)(1)Section 409—insert—

(ea)be accompanied by information, prescribed by regulation, that is relevant to the matters mentioned in section 410(1)(a)(iii); and

(2)Section 409(ea) and (f)—renumber as section 409(f) and (g).19Amendment of s 410 (Deciding whether to grant licence)Section 410(1)(a)—insert—

(iii)the Minister is satisfied the applicant is able to competently and safely manage, for each pipeline the subject of the licence, the location, design, construction and operation of the pipeline; and

20Amendment of s 411 (Public notice requirement)(1)Section 411(2)(a)—insert—

(iiia)each substance proposed to be transported through the pipeline;

(2)Section 411(2)(a)(iiia) to (vi)—renumber as section 411(2)(a)(iv) to (vii).21Amendment of s 412 (Provisions of licence)Section 412(1)—insert—

(e)each substance that is to be transported through the pipeline.

22Amendment of s 415 (Criteria for decisions)Section 415(1)(a)—omit, insert—

(a)the applicant’s financial and technical resources;

23Insertion of new s 418After section 417—insert—418Obligations relating to safety management study(1)A pipeline licence holder must—

(a)give the chief inspector notice of the holder’s intention to start a safety management study for a pipeline the subject of the licence at least 20 business days before the study starts; andNote—For other relevant provisions about giving the chief inspector documents, see section 851AA.

(b)comply with any requirement prescribed by regulation about keeping a record relating to the study.

(2)However, if the licence is an area pipeline licence, subsection (1) only applies for each initial pipeline mentioned in the licence.(3)An applicant for a pipeline licence may give a notice under subsection (1)(a).(4)This section does not apply to the holder of a pipeline licence if the pipeline to be constructed is for transporting produced water.(5)In this section—safety management study, for a pipeline, means a process that is carried out before construction of the pipeline starts to identify, and apply controls to, threats to the safety and integrity of the pipeline.24Amendment of s 422 (Obligations in operating pipeline)(1)Section 422(1)(a), ‘or produced water’—omit, insert—, produced water, prescribed storage gas or regulated hydrogen(2)Section 422—insert—(1A)The pipeline licence holder must not use the pipeline to transport a substance unless the substance is stated in the licence.(3)Section 422(1A) and (2)—renumber as section 422(2) and (3).25Amendment of s 437 (Limitation of pipeline licence holder’s liability)(1)Section 437(1)(a), ‘or fuel gas’—omit, insert—, fuel gas or regulated hydrogen(2)Section 437(1)(b), after ‘quality’—insert—being26Amendment of s 577 (Notice of application required for particular pipeline licences)(1)Section 577, heading—omit, insert—577Notice to surrender a pipeline licence (2)Section 577(1) and (2)—omit, insert—(1)A surrender application can not be made for a petroleum authority that is a pipeline licence unless the holder has, at least 3 months before the application is lodged, lodged a notice to surrender the licence.(3)Section 577(3) and (4), ‘application notice’—omit, insert—notice to surrender(4)Section 577(5), penalty, ‘(5)’—omit, insert—(4)(5)Section 577(3) to (5)—renumber as section 577(2) to (4).27Amendment of s 670 (What is an operating plant)(1)Section 670(2)(d), after ‘only’—insert—an excluded compound or(2)Section 670(6)(a)—omit, insert—

(a)all of the authorised activities for a petroleum authority other than authorised activities related to the operation of a pipeline used only to transport an excluded compound; or

(aa)all of the authorised activities for a geothermal tenure or GHG authority; or

(3)Section 670(6)(aa) and (b)—renumber as section 670(6)(b) and (c).(4)Section 670(7), ‘and (b)’—omit, insert—, (b) and (c)(5)Section 670(10)—insert—excluded compound means a substance that is—

(a)prescribed under section 11A(c); and

(b)declared by regulation to be an excluded compound for this section.

28Amendment of s 809 (Unlawful taking of petroleum or fuel gas prohibited)(1)Section 809, heading, ‘or fuel gas’—omit, insert—, fuel gas and other substances(2)Section 809, ‘or produced water’—omit, insert—, produced water or regulated hydrogen29Replacement of s 815 (Fuel gas suppliers must not use other supplier’s containers)Section 815—omit, insert—815Supply of fuel gas in containers(1)This section applies to a container that—

(a)has a water capacity of more than 25kg; and

(b)is owned or provided by a product supplier for a fuel gas delivery network.

(2)A person must not supply fuel gas to or in the container without the product supplier’s permission to use the container.Maximum penalty—100 penalty units.30Insertion of new ch 15, pt 30Chapter 15—insert—Part 30Transitional provisions for Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 20231035 Definitions for partIn this part—amended Act means this Act as in force on the commencement.amendment Act means the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 2023.former, for a provision of this Act, means the provision as in force from time to time before the commencement.new, for a provision of this Act, means the provision as in force from the commencement.transitional period means the period starting on day of the commencement and ending on the day that is 1 year after the commencement.1036 Existing applications for pipeline licences(1)This section applies if—

(a)before the commencement, an application was made under former section 407, former section 474 or former section 479 for a pipeline licence; and

(b)immediately before the commencement, the application had not been decided.

(2)This Act, as in force immediately before the commencement, continues to apply in relation to the application as if the amendment Act had not been enacted.1037 Existing pipeline licences(1)This section applies to a pipeline licence that was in effect immediately before the commencement.(2)During the transitional period, this Act as in force immediately before the commencement continues to apply in relation to the pipeline licence as if the amendment Act had not been enacted.(3)However, the holder of the pipeline licence may apply under new chapter 4, part 6, to state a substance, including, for example, regulated hydrogen under new section 11A, to be transported through the pipeline.(4)If the pipeline licence is amended to state a substance to be transported through the pipeline—

(a)subsection (2) stops applying in relation to the pipeline licence; and

(b)the amended Act applies in relation to the licence.

(5)This section is subject to section 1038(3).1038 Notice of substances transported through existing pipeline(1)This section applies to a holder of a pipeline licence that was in effect immediately before the commencement.(2)The holder may, during the transitional period, give the chief executive a notice stating each substance that is, when the notice is given, transported through the pipeline.(3)If the holder gives the chief executive a notice under subsection (2)—

(a)section 1037(2) stops applying in relation to the pipeline licence; and

(b)the amended Act applies in relation to the licence as if each substance stated in the notice were stated in the licence as a substance to be transported through the pipeline.

1039 Existing pipes and systems(1)This section applies if—

(a)immediately before the commencement, a pipe, or system of pipes, for transporting a substance (an existing pipe or system) was not a pipeline under former section 16; and

(b)on the commencement, the existing pipe or system becomes a pipeline under new section 16 because the substance transported through the pipe or system is prescribed under new section 11A(c).

(2)Despite new sections 16 and 670, the existing pipe or system is not a pipeline or an operating plant under the amended Act.Part 4Other amendments31Legislation amendedSchedule 1 amends the legislation it mentions.Schedule 1Other amendmentssection 31Gas Supply Act 20031Particular references to processed natural gas—In the following table, each provision mentioned in column 1 is amended by omitting the words ‘processed natural gas’ and inserting the words mentioned in column 2—Column 1Column 2section 12a covered gassection 13(a)(i)covered gassection 15, headingcovered gassection 16(3)(b), first mentiona covered gassection 16(3)(b)(i)the covered gassection 19(1)(b)the covered gassection 19(2)a covered gassection 21(a)a covered gassection 42(2) and (3)covered gasessection 109(1)(a)(iii)a covered gassection 109A(2)(a)a covered gassection 131Acovered gassection 133(d)a covered gassection 140(1)a covered gassection 213(1)(b), (2) and (4)a covered gassection 222(1)a covered gassection 222(2)(a)the covered gassection 223(1)(b)the covered gassection 228(1)(a), (b) and (c), examplesa covered gassection 231(a)a covered gassection 236(d)(ii)a covered gassection 236(f) and (g)covered gasessection 237(1)a covered gassection 237(4)covered gassection 244a covered gassection 245(1), first mentiona covered gassection 247(3)a covered gassection 247(4)(a) and (5), definition required notice, paragraph (d)the covered gassection 254(1)a covered gassection 254(5), examplesthe covered gassection 256, headingcovered gassection 256(1)(a)the covered gas stated in the directionsection 256(1)(b) and (c), (2) and (3)covered gassection 257(b)the covered gassection 270A(1)covered gassection 270K(1)(a)covered gassection 286(2), first mentiona covered gassection 286(2)(c)covered gassection 289, headingcovered gassection 289(1)a covered gassection 295covered gaschapter 6, part 3, division 2, headingcovered gasessection 298, first mentiona covered gassection 298(a)the covered gassection 301(1)a covered gassection 301(2)(a)covered gassection 316(1)(a)a covered gassection 321B(2)covered gasschedule 2, definition metera covered gasschedule 2, definition reticulateda covered gas2Section 13(a), ‘transports processed natural gas’—omit, insert—transports a covered gas3Section 14(1), from ‘supply of processed’—omit, insert—supply of a covered gas to more than 1 customer within a covered gas market.4Section 15, ‘Processed natural gas’—omit, insert—A covered gas5Section 16(1), ‘reticulated processed natural gas’—omit, insert—a reticulated covered gas6Section 16(2), ‘a processed natural gas installation’—omit, insert—an installation for a covered gas7Section 16(3)(a), ‘gas’—omit, insert—covered gas8Section 19(1)(a)(i), ‘system—’—omit, insert—system for a covered gas—9Section 19(1)(a)(ii), from ‘system’, first mention to ‘gas’—omit, insert—system for a covered gas—opening a physical connection to the pipeline or system to allow reticulated covered gas10Section 21(b), after ‘services’—insert—for the covered gas11Section 22(1)(b) and (c), after ‘services’—insert—for a covered gas12Chapter 2, heading—omit, insert—Chapter 2Distribution of covered gases13Section 27(2), from ‘relating’ to ‘gas’, second mention—omit, insert—for a covered gas to be transported through a pipeline if the retailer sells the covered gas14Section 32(2)(a), after ‘services’—insert—for the covered gas stated in the application15Section 41, from ‘processed’, first mention to ‘gas’, second mention—omit, insert—a covered gas transported through a pipeline if the distributor provides customer connection services for the covered gas16Section 48(1), ‘processed natural’—omit.17Section 103(1), after ‘services’—insert—for a covered gas18Section 104A, ‘services applied’—omit, insert—services for the covered gas applied19Sections 105(1)(b), 106(1) and 108(1), after ‘services’—insert—for the covered gas20Section 108(3)(c), after ‘transportation of’—insert—the covered21Section 109(1)(b)(i)—omit, insert—

(i)perform work, or changes to the person’s installation for a covered gas, necessary to allow connection of the distributor’s meter to measure consumption of the covered gas;

22Chapter 2, part 3, division 3, heading, from ‘processed’—omit, insert—installations for covered gases23Sections 111 and 112(1), ‘a processed natural gas installation’—omit, insert—an installation for a covered gas24Sections 126(1) and 131(3), ‘reticulated processed natural gas’—omit, insert—a reticulated covered gas25Chapter 3, heading—omit, insert—Chapter 3Supply of reticulated covered gases26Section 233(1), examples, heading, after ‘information’—insert—in relation to a direction for prices notification for a covered gas27Section 233(1), examples, ‘processed natural’—omit.28Section 239(3)(a), ‘processed natural gas supply’—omit, insert—the supply of a covered gas29Section 239(3)(b)(i), ‘processed natural gas supply’—omit, insert—the supply of the covered gas30Section 245(1), examples, heading, after ‘information’—insert—in relation to sufficiency of supply of a covered gas31Section 245(1), examples, ‘processed natural’—omit.32Section 247, heading, from ‘processed’—omit, insert—transport or sale of covered gas or customer connection services33Section 247(1)—omit, insert—(1)The holder of a transmission pipeline licence for a pipeline that transports a covered gas must give the regulator the required notice at least 3 months before stopping, or significantly reducing, the transportation of the covered gas through the pipeline.Maximum penalty—100 penalty units.34Section 251, ‘of processed natural gas’—omit, insert—of a covered gas35Section 251, examples, item 2, ‘sell processed natural gas’—omit, insert—sell the covered gas36Section 270F(1), from ‘processed’, first mention—omit, insert—covered gas services for the long-term interests of Queensland customers of covered gas about price, quality, safety, reliability and security of supply of the covered gas.37Section 289(2), from ‘processed’, first mention to ‘gas’, second mention—omit, insert—a covered gas or LPG if the person takes the covered gas38Section 297—omit, insert—297Evidence of unlawful taking of covered gases or LPGIf—

(a)on, or in association with, a customer’s installation for a covered gas or LPG there exists a way to unlawfully take the covered gas or LPG; and

(b)the covered gas or LPG is unlawfully taken from the installation;

evidence of the existence of the way is evidence that the customer has unlawfully taken the covered gas or LPG.39Section 299—omit, insert—299Ownership of covered gases or LPG for proceeding(1)This section applies in a proceeding for an offence against this or another Act in which it is claimed a covered gas or LPG has been unlawfully taken.(2)The covered gas or LPG is taken to belong to any person through whose distribution or other pipeline the covered gas or LPG was being transported when it was unlawfully taken.40Section 316(1)(b), ‘defective reticulated processed natural gas’—omit, insert—a defective reticulated covered gas41Section 316(3)(b), after ‘supply’—insert—of the covered gas42Schedule 2, definitions corresponding authority, processed natural gas and supply—omit.43Schedule 2—insert—corresponding authority, for a distribution authority for a covered gas, means an authority or licence, however called, issued under any of the following that is similar to the distribution authority for the covered gas—

(a)Gas Supply Act 1996 (NSW);

(b)Gas Act 1997 (SA);

(c)Gas Industry Act 2001 (Vic);

(d)Gas Industry Act 2019 (Tas);

(e)Energy Coordination Act 1994 (WA);

(f)Energy Operators (Powers) Act 1979 (WA);

(g)Utilities Act 2000 (ACT);

(h)another law of a State relating to the transport or supply of the covered gas.

covered gas see section 9.supply, for a covered gas, includes the transportation or sale of the covered gas.Petroleum and Gas (Production and Safety) Act 20041Section 619(1)(a), ‘motive’—omit.2Schedule 2—insert—hydrogen gas blend see section 11(3).regulated hydrogen see section 11A.3Schedule 2, definition distribution system, ‘fuel gas market’—omit, insert—gas market4Schedule 2, definition Geothermal Act, ‘3A(1)’—omit, insert—3A(1)(a)5Schedule 2, definition GHG storage Act, ‘3A(1)’—omit, insert—3A(1)(a)6Schedule 2, definition operate, first mention, paragraph 2(a), ‘or produced water’—omit, insert—, produced water, prescribed storage gases or regulated hydrogen© State of Queensland 2023