Sustainable Aviation Fuel Bill 2024-26

Clause 6, page 4, line 24, leave out subsection (3) and insert—<br> “(3) For the purpose of meeting expenses properly incurred, or likely to be so incurred, by the designated counterparty in performing functions under this Act, relevant suppliers of aviation fuel shall, in accordance with the regulations under subsection (1), pay to the designated counterparty in each month a standardised levy on their relevant disposals of aviation fuel products in the preceding month that must be publicised on invoices expressed in pence per standard litre.”

<p>This amendment requires the Secretary of State to set a standardised levy rate payable by all suppliers of aviation fuel, that must be publicised by suppliers of aviation fuel on invoices to their customers.</p>

Clause 6, page 4, line 35, leave out paragraph (a)

<p>This amendment is consequential on another amendment in the name of Earl Russell to require the Secretary of State to set a standardised levy rate payable by all suppliers of aviation fuel, that must be publicised by suppliers of aviation fuel on invoices to their customers.</p>

Clause 6, page 4, line 38, leave out subsection (7)

<p>This leaves out the duty to consult about levy regulations under clause 6 since I am proposing a new clause that brings together (and extends) consultation requirements under the Bill. See my new clause to be inserted before clause 15.</p>

Clause 10, page 6, line 13, leave out subsection (4)

<p>This leaves out the duty to consult about regulations under clause 10 since I am proposing a new clause that brings together (and extends) consultation requirements under the Bill. See my new clause to be inserted before clause 15.</p>

Before Clause 15, insert the following new Clause—<br> <b>“Duty to consult about regulations</b><br> (1) Before making regulations under this Act the Secretary of State must consult any persons the Secretary of State considers appropriate.<br> (2) In the case of regulations under section 1, 3, 10 or 11, that must include—<br> (a) the Welsh Ministers,<br> (b) the Scottish Ministers, and<br> (c) the Department for the Economy in Northern Ireland.”

<p>This requires the Secretary of State, before making regulations under the Bill, to consult any persons the Secretary of State considers appropriate. In the case of regulations under section 1, 3, 10 or 11 (which may contain devolved provision) the devolved authorities must be consulted in addition to anyone else.</p>

Clause 1, page 1, line 5, at end insert “, subject to sections <i>(Further provision about power to liquid fuels)</i> and <i>(Further provision about the direction to offer revenue certainty contract)</i>,”

<p>This amendment is consequential on Lord Ravensdale’s amendments adding new sections “Further provision about power to liquid fuels” and “Further provision about the direction to offer revenue certainty contract”.</p>

After Clause 1, insert the following new Clause—<br> <b>“Further provision about the direction to offer revenue certainty contract</b><br> (1) The Secretary of State must, from 1 January 2030, make rules (an “allocation framework”) about the allocation of revenue certainty contracts, including—<br> (a) provision for the giving of notice before an allocation round is commenced;<br> (b) provision for different allocation frameworks to apply in respect of different allocation rounds;<br> (c) provision for the publication of allocation frameworks;<br> (d) provision about matters in relation to which provision may or must be made in an allocation framework.<br> (2) An allocation framework must contain provision to allow the Secretary of State to make a decision to limit eligibility for a revenue certainty contract, by reference to—<br> (a) the process used for producing sustainable aviation fuel;<br> (b) outputs of sustainable aviation fuel or capacity of sustainable aviation fuel production;<br> (c) the geographical location of an applicant’s activities;<br> (d) standards or other published documents.<br> (3) An allocation framework must include provision for—<br> (a) the determination of a matter on a competitive basis;<br> (b) calculations or determinations to be made under the framework.<br> (4) An allocation framework may—<br> (a) include incidental, supplementary and consequential provision;<br> (b) make transitory or transitional provision and savings;<br> (c) make different provision for different cases or circumstances or for different purposes;<br> (d) make provision subject to exceptions.”

<p>This amendment gives the Secretary of State a duty from 1 January 2030 to make rules establishing an allocation framework for award of revenue certainty contracts, on the same basis as contracts for difference for energy, and revenue support contracts for hydrogen and carbon capture, including provision for competition, and eligibility based on production location.</p>

Clause 1, page 1, line 5 at end insert—<br> “(1A) Any revenue certainty contract offered under subsection (1) must not exceed a term of ten years and must include a break clause exercisable at no cost by the Secretary of State at the end of the fifth year of the contract.”

<p>This amendment would limit revenue-certainty contracts to a maximum of ten years and require that each contract include a break clause exercisable at no cost to the taxpayer allowing the Secretary of State to terminate the contract at the five-year point.</p>

Clause 6, page 4, leave out lines 25 to 27 and insert “to the designated counterparty in each month a standardised levy on the aviation fuel products provided by that supplier in the preceding month that must be published on invoices expressed in pence per standard litre.”

<p>This amendment probes the practicality of a levy mechanism based on market share.</p>

<i>Lord Moylan gives notice of his intention to oppose the Question that Clause 6 stand part of the Bill.</i>

<p>This amendment probes the concerns raised by the Constitution Committee regarding the delegated power in Clause 6.</p>

Clause 12, page 7, line 17, at end insert—<br> “(3) A direction given under subsection (1) must include a requirement for the designated counterparty to report on—<br> (a) the impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the preceding 12 month period;<br> (b) a projection of the expected impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the following five year period.<br> (4) A report under subsection (3) must be made within one year of the to the day on which this Act is passed and annually thereafter.<br> (5) The Secretary of State must lay a report made under subsection (4) before Parliament.”

<p>This amendment would require the designated counterparty to report on the impact that the revenue certainty mechanism has on passenger air fares.</p>

After Clause 12, insert the following new Clause—<br> <b>“Further provision about power-to-liquid fuels</b><br> (1) The Secretary of State must direct the designated counterparty to offer to enter into one or more revenue certainty contracts with a producer of power-to-liquid fuel.<br> (2) The revenue certainty contracts or contracts to which this section applies must be for the production of power-to-liquid fuel of at least the volumes set out in the second column of the table in subsection (3).<br> (3) The table is as follows—<br> <table class="top-and-bottom tableleft width-100" cols="2"><thead class="left"><tr><th><p>Obligation period or periods</p></th><th><p>Volume of Power-to-liquid fuel, million tonnes of oil equivalent</p></th></tr></thead><tbody class="left"><tr><td><p>1st January 2028 to 31st December 2028</p></td><td><p>0.0215</p></td></tr><tr><td><p>1st January 2029 to 31st December 2029</p></td><td><p>0.0218</p></td></tr><tr><td><p>1st January 2030 to 31st December 2030</p></td><td><p>0.0556</p></td></tr><tr><td><p>1st January 2031 to 31st December 2031</p></td><td><p>0.0560</p></td></tr><tr><td><p>1st January 2032 to 31st December 2032</p></td><td><p>0.0850</p></td></tr><tr><td><p>1st January 2033 to 31st December 2033</p></td><td><p>0.1146</p></td></tr><tr><td><p>1st January 2034 to 31st December 2034</p></td><td><p>0.1449</p></td></tr><tr><td><p>1st January 2035 to 31st December 2035</p></td><td><p>0.1765</p></td></tr><tr><td><p>1st January 2036 to 31st December 2036</p></td><td><p>0.2273</p></td></tr><tr><td><p>1st January 2037 to 31st December 2037</p></td><td><p>0.2798</p></td></tr><tr><td><p>1st January 2038 to 31st December 2038</p></td><td><p>0.3342</p></td></tr><tr><td><p>1st January 2039 to 31st December 2039</p></td><td><p>0.3904</p></td></tr><tr><td><p>1st January 2040 to 31st December 2040 and subsequent obligation periods</p></td><td><p>0.4487</p></td></tr></tbody></table><br> (4) In this section, “power-to-liquid fuel” means sustainable aviation fuel of non-biological origin—<br> (a) the energy content of which comes from nuclear sources or renewable sources, other than biomass; and<br> (b) which is not made from—<br> (i) biofuels, or<br> (ii) a carbon source that has been generated for the purpose of converting it into a fuel for use in aircraft.”

<p>This amendment requires that from 2028, an increasing amount of revenue certainty contracts for power-to-liquid (PtL) fuels must be entered into. The amounts in subsection (3) are taken from article 3 of the SAF mandate order (SI 2024/1187) which sets out the proportion of SAFs that must be PtL fuels.</p>

After Clause 14, insert the following new Clause—<br> <b>“Impact of this Act on the price of airline tickets</b><br> (1) Within one year of the day on which this Act is passed, the Secretary of State must publish a report to assess the impact of the sustainable aviation fuel revenue certainty mechanism on the price of airline tickets.<br> (2) The report under subsection (1) must include an assessment of whether the impact of the sustainable aviation fuel revenue certainty mechanism on ticket prices is greater than £1.50 per ticket per year.<br> (3) The Secretary of State must lay the report under subsection (1) before Parliament.”

<p>This amendment seeks probe the impact of the sustainable aviation fuel revenue certainty mechanism on airline tickets. In particular, it seeks to probe whether the impact is in line with the Government’s analysis as set out in the Department for Transport’s ‘Revenue Certainty Mechanism Cost Benefit analysis’, which suggests that the likely impact on ticket prices is between -£1.50 and £1.50, on average, per year.</p>

Clause 16, page 8, leave out lines 34 to 36 and insert—<br> ““relevant crops” means starch-rich crops, sugars, oil crops and main crops, where “starch-rich crops” include—<br> (a) cereals (regardless of whether only the grains are used or the whole plant),<br> (b) tubers and root crops, including potatoes, Jerusalem artichokes, sweet potatoes, cassava and yams, and<br> (c) corm crops, including taro and cocoyam;<br> “renewable transport fuel” means anything that is (or could be treated as) renewable transport fuel for the purposes of Chapter 5 of Part 2 of the Energy Act 2004 (see sections 131D(2) and 132(1) of that Act), other than such fuel where it is derived from relevant crops;”

<p>This amendment will include nuclear-derived power-to-liquid fuels in the scope of sustainable aviation fuels for which Revenue Certainty Contracts can be offered, and remove food crops, using the same definition of “relevant crops” as the Renewable Transport Fuel Obligations Order for surface transport (SI 2007/3072).</p>

Clause 16, page 8, line 36, at end insert “except hydroprocessed esters and fatty acids (HEFA) sustainable aviation fuel”

<p>This amendment excludes hydroprocessed esters and fatty acids (HEFA) sustainable aviation fuel from the revenue certainty mechanism.</p>

Clause 18, page 9, line 4, leave out “Act, apart from section 1,” and insert “section”

<p>This amendment, and another in the name of Lord Moylan, probes the work done by the Government to demonstrate that without the revenue certainty mechanism the UK has a comparative advantage in the production of SAF.</p>

Clause 18, page 9, line 6, leave out subsection (2) and insert—<br> “(2) The remainder of this Act does not come into force until the Secretary of State has published an economic assessment of the United Kingdom’s global comparative advantage in the production of sustainable aviation fuel.”

<p>This amendment, and another in the name of Lord Moylan, probes the work done by the Government to demonstrate that without the revenue certainty mechanism the UK has a comparative advantage in the production of SAF.</p>

Clause 1, page 2, line 15, at end insert—<br> “(9) A direction given by the Secretary of State under subsection (1) may only require the designated counterparty to enter into a revenue certainty contract with a producer in respect of sustainable aviation fuel that is, or is projected to be, manufactured at a production facility located within the United Kingdom.<br> (10) For the purposes of this Act, no sustainable aviation fuel producer shall be eligible for a revenue certainty contract if any certified component fuel or precursor which constitutes more than ten per cent of the final sustainable aviation fuel volume is not also manufactured at a production facility located within the United Kingdom.”

<p>This amendment seeks to legally ring-fence the financial support provided under the Act, preventing the levy raised from UK aviation fuel suppliers from being used to subsidise sustainable aviation fuel production facilities located outside the UK.</p>

Clause 6, page 4, line 19, after “contracts” insert “in respect of sustainable aviation fuel manufactured in the United Kingdom”

<p>This amendment seeks to ensure that the levy is raised for the purposes of manufacturing sustainable aviation fuel in the United Kingdom. Connected with another amendment in the name of Lord Grayling, it seeks to prevent the government from diverting the levy funds to other broader aviation or climate-related policies.</p>

Clause 6, page 4, line 20, leave out “other” and insert “directly related administration”

<p>This amendment seeks to ensure that the levy can only be raised in relation to “other costs” if they are directly related to the administration of the levy. Connected with another amendment in the name of Lord Grayling, it seeks to prevent the government from diverting the levy funds to other broader aviation or climate-related policies.</p>

Clause 6, page 4, line 21, at end insert—<br> “(1A) Levy regulations must stipulate that the levy shall be applied to conventional aviation fuel at the point where that fuel is withdrawn from a refinery, terminal, or bulk storage facility for supply to the aviation market within the United Kingdom.”

<p>This amendment seeks to narrow the regulation-making power conferred on the Secretary of State, ensuring that there is a a specific mandatory point of application for the levy. It is intended that this will align with existing fuel duty collection methods, ensuring the levy is applied consistently at the first point of sale or movement in the domestic supply chain.</p>

Clause 18, page 9, line 4, leave out “apart from section 1” and insert “subject to subsections (2) and (3)”

<p>This amendment, connected with another in the name of Lord Grayling, seeks to prevent the levy from being imposed until a domestic sustainable aviation fuel producer is approaching readiness to receive payments under the Act. It seeks to minimise the period during which money is collected but not dispersed to producers.</p>

Clause 18, page 9, line 7, at end insert—<br> “(3) Section 6 does not come into force until—<br> (a) the Secretary of State deems that the first sustainable aviation fuel producer in the United Kingdom will be expected to operate within six months,<br> (b) the Secretary of State has published the expected date of operation in a notice laid before both Houses of Parliament, and<br> (c) that producer in paragraph (a) has a revenue certainty contract under this Act.”

<p>This amendment, connected with another in the name of Lord Grayling, seeks to prevent the levy from being imposed until a domestic sustainable aviation fuel producer is approaching readiness to receive payments under the Act. It seeks to minimise the period during which money is collected but not dispersed to producers.</p>

After Clause 14, insert the following new Clause—<br> <b>“Report on UK sustainable aviation fuel production</b><br> (1) The Secretary of State must, in respect of each reporting period, prepare and publish a report on sustainable aviation fuel (“SAF”) produced in the United Kingdom.<br> (2) The report must include—<br> (a) the total volume of SAF produced in the United Kingdom during the reporting period;<br> (b) the types of SAF produced, including the feedstocks and production pathways used;<br> (c) the volume produced for each type identified under paragraph (b);<br> (d) an assessment of the conversion of UK production sites for SAF manufacture;<br> (e) an estimate of the greenhouse gas savings resulting from SAF produced during the reporting period;<br> (f) information reported by air travel providers in relation to their use of SAF;<br> (g) any other information the Secretary of State considers relevant to understanding the United Kingdom’s SAF production capacity and trends.<br> (3) The Secretary of State must lay the report before Parliament within six months of the end of each reporting period.<br> (4) In this section “reporting period” means a period of three years beginning with 1 January 2026 and each subsequent three-year period.”

<p>This amendment requires the Secretary of State to publish a report on the production of SAF in the UK and for related purposes.</p>

After Clause 14, insert the following new Clause—<br> <b>“Reporting of Sustainable Aviation Fuel target</b><br> (1) The Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 is amended as set out in this section.<br> (2) In article 3, after paragraph (5) insert—<br> “(5A) The Secretary of State may vary the table in paragraph (7) in order to increase the obligation in any given year.”.<br> (3) In sub-paragraph 33(2)(c), leave out “, and”.<br> (4) After sub-paragraph 33(2)(d), insert “and<br> (e) consider whether the SAF obligation set out in the table in sub-paragraph 3(7) of this Order should be increased for any given year, and if so, set out steps the Secretary of State will take to effect such an increase.”.<br> (5) After paragraph 33(2) insert—<br> “(2A) A copy of a report published under this article must—<br> (a) be laid before Parliament, and<br> (b) be sent to the relevant select committee of each House of Parliament.<br> (2B) In sub-paragraph 33(2A)(b), “relevant select committee” is—<br> (a) in the House of Commons, the Transport Committee, provided that—<br> (i) if the name of that Committee is changed, reference is instead taken to mean the new name, and<br> (ii) if the functions of that Committee with respect to Sustainable Aviation Fuel become functions of a different committee of the House of Commons, reference is instead taken to the committee by whom the functions are then exercisable;<br> (b) in the House of Lords, any such committee as the Chairman of Committees may appoint.”.”

<p>This amendment would amend the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 to allow the Secretary of State to increase the sustainable aviation fuel (SAF) obligation for any given year. It would also require the Secretary of State to report to Parliament on whether the SAF obligation should be raised and to lay such reports before both Houses, with copies sent to the relevant select committees.</p>

After Clause 14, insert the following new Clause—<br> <b>“Air travel providers’ use of sustainable aviation fuel: reporting requirements</b><br> (1) Within six months of the day on which this Act is passed the Secretary of State must, by regulations, establish a requirement for air travel providers to report annually on their use of sustainable aviation fuel.<br> (2) Regulations made under subsection (1) must specify—<br> (a) that the annual reports must include figures for sustainable aviation fuel usage which can be easily understood, including expressed as—<br> (i) an absolute volume, and<br> (ii) proportion of all aviation fuel used, and<br> (b) that the annual reports are accessible to members of the public including by being made available on their websites.”

<p>This amendment would require the Secretary of State to make regulations obliging air travel providers to publish annual reports on their use of sustainable aviation fuel. The reports would need to include both the total volume of SAF used and its proportion of overall aviation fuel and must be made publicly accessible.</p>

After Clause 14, insert the following new Clause—<br> <b>“UK production of sustainable aviation fuel</b><br> (1) The designated counterparty may only enter into a contract with a producer of sustainable aviation fuel if the producer’s activity—<br> (a) is located within the United Kingdom, and<br> (b) is registered with, and meets such conditions as may be specified by, the Secretary of State in regulations made under this Act.<br> (2) For the purposes of subsection (1), “manufacture” means the undertaking of the main chemical or biological conversion processes by which sustainable aviation fuel is produced from its feedstocks, and does not include—<br> (a) blending of sustainable aviation fuel with kerosene or other fuels, or<br> (b) storage, trading, or mere transit of sustainable aviation fuel through the United Kingdom.<br> (3) Regulations under this section may make further provision for determining whether sustainable aviation fuel is to be treated as UK production, including (but not limited to) provision about—<br> (a) the extent of processing that must take place in the United Kingdom,<br> (b) ownership and control of the production facility, and<br> (c) the evidence required to demonstrate that the conditions in this section are met.<br> (4) The revenue certainty mechanism established under this Act—<br> (a) may only provide support in respect of sustainable aviation fuel that is UK production within the meaning of this section, and<br> (b) must include terms ensuring that no payment is made under any revenue certainty contract in respect of any volume of sustainable aviation fuel which—<br> (i) is not UK production, or<br> (ii) is UK production but is sold or otherwise supplied for use outside the United Kingdom.<br> (5) Regulations under this Act relating to the revenue certainty mechanism must provide that—<br> (a) only UK production is eligible for support under the mechanism, and<br> (b) any sustainable aviation fuel manufactured pursuant to a revenue certainty contract may not be exported for use outside the United Kingdom, save where the Secretary of State is satisfied that—<br> (i) exceptional and temporary market circumstances would otherwise result in the fuel not being supplied for use in the United Kingdom, and<br> (ii) no payment will be, or has been, made under the revenue certainty mechanism in respect of the exported volume.<br> (6) The Secretary of State must publish, and lay before Parliament, an annual report setting out—<br> (a) the total volumes of sustainable aviation fuel supported under the revenue certainty mechanism,<br> (b) the proportion of those volumes that constitute UK production, and<br> (c) the volumes (if any) of sustainable aviation fuel produced under revenue certainty contracts that have been exported and the reasons for any export permitted under subsection (5)(b).”

<p>This amendment defines “UK production” of sustainable aviation fuel and ensures that only fuel made at qualifying UK facilities is eligible for government support under the Revenue Certainty Mechanism. It prevents public payments for fuel that is exported or not used in the UK, except in limited circumstances, and requires annual reporting to Parliament on the scheme’s operation</p>

NC1

To move the following Clause—<br> <b>“Review of the Potential Conversion of Industrial Sites for Sustainable Aviation Fuel Production</b><br> (1) Within twelve months of the day on which this Act is passed, the Secretary of State must lay before Parliament and publish a report into the merits of converting disused oil refineries and other relevant existing industrial sites into facilities for the production of sustainable aviation fuel.<br> (2) The report required under subsection (1) must include, but is not limited to—<br> (a) an assessment of the technical and operational feasibility of such conversions;<br> (b) an evaluation of the economic viability of such conversions;<br> (c) the cost effectiveness of such conversions compared to new build production facilities, taking into account—<br> (i) the ability to use existing infrastructure such as tanks and pipelines;<br> (ii) the complexities of environmental remediation and site preparation;<br> (iii) the availability and suitability of a skilled workforce within proximity to such sites;<br> (d) recommendations for government actions to facilitate and incentivise such conversions, where they are deemed beneficial for enhancing the resilience and increasing the domestic production of sustainable aviation fuel industry.<br> (3) In preparing the report required under subsection (1), the Secretary of State must consult relevant stakeholders, including, but not limited to—<br> (a) sustainable aviation fuel producers;<br> (b) representatives of the oil and gas industry and workforce;<br> (c) environmental organisations;<br> (d) local authorities; and<br> (e) academic experts.<br> (4) The report must be accompanied by a statement from the Secretary of State on how the findings of the report will be addressed through Government action.”

<p>This new clause mandates the Secretary of State to publish a report within twelve months, reviewing the merits of converting disused oil refineries and other industrial sites for sustainable aviation fuel production.</p>

NC2

To move the following Clause—<br> <b>“Review of the supply of bioethanol for use in sustainable aviation fuel production</b><br> (1) The Secretary of State must, within six months of the passing of this Act, publish and lay before Parliament a report reviewing measures to encourage the supply of materials for sustainable aviation fuel.<br> (2) The report under subsection (1) must include—<br> (a) an assessment of the impact of the closure of bioethanol plants on the ability to encourage overall increases in sustainable aviation fuel production;<br> (b) options for mitigating any adverse impacts on the availability of supply of sustainable aviation fuel by the closure of bioethanol plants;<br> (c) recommendations for any necessary Government action to promote a stable supply of bioethanol for sustainable aviation fuel.”

<p>This new clause would require the Secretary of State to lay before Parliament a report outlining measures to encourage the supply of materials for SAFs, including considering the impact of bioethanol plant closures on encouragement to increase supply.</p>

NC3

To move the following Clause—<br> <b>“Increasing greenhouse gas saving potential of sustainable aviation fuel</b><br> (1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a report which sets out a strategy for increasing the greenhouse gas emission saving resulting from the promotion of sustainable aviation fuel production in the United Kingdom.<br> (2) The report required under subsection (1) must include, but not be limited to—<br> (a) proposals for incentivising the research and development of sustainable aviation fuels that maximise greenhouse gas emission savings;<br> (b) an assessment of, and recommendations for increases to, the minimum required greenhouse gas emission reduction in order for a sustainable aviation fuel to be issued a SAF certificate;<br> (c) an assessment of, and recommendations for increases to, minimum ratios for renewable content in blended sustainable aviation fuels, for the purpose of more quickly reducing greenhouse gas emissions.<br> (3) Twelve months after the publication of the report required under subsection (1) and within every twelve months thereafter, the Secretary of State must publish a further report which—<br> (a) sets out progress against the strategy; and<br> (b) makes any necessary adjustments to the strategy as a result of developments in the sustainable aviation fuel industry.<br> (4) In this section, “SAF certificate” has the meaning given in article 2 of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”

NC4

To move the following Clause—<br> <b>“Reporting of Sustainable Aviation Fuel targets</b><br> (1) The Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 is amended as set out in this section.<br> (2) In paragraph (3), after sub-paragraph (5) insert—<br> “(5A) The Secretary of State may vary the table in paragraph (7) in order to increase the obligation in any given year.”<br> (3) In sub-paragraph 33(2)(c) leave out “, and”<br> (4) After sub-paragraph 33(2)(d), insert “and<br> (e) consider whether the SAF obligation set out in the table in sub-paragraph 3(7) of this Order should be increased for any given year, and if so, set out steps the Secretary of State will take to effect such an increase.”<br> (3) After paragraph 33(2) insert—<br> “(2A) A copy of a report published under this article must—<br> (a) be laid before Parliament; and<br> (b) be sent to the relevant select committee of each House of Parliament.<br> (2B) In sub-paragraph 33(2A)(b), “the relevant select committee” is—<br> (a) in the House of Commons, the Transport Committee, provided that—<br> (i) if the name of that Committee is changed, reference is instead taken to mean the new name, and<br> (ii) if the functions of that Committee with respect to Sustainable Aviation Fuel become functions of a different committee of the House of Commons, reference is instead taken to the committee by whom the functions are then exercisable;<br> (b) in the House of Lords, any such Committee as the Chairman of Committees may appoint.””

NC5

To move the following Clause—<br> <b>“Air travel providers’ use of sustainable aviation fuel: reporting requirements</b><br> (1) Within six months of the passing of this Act, the Secretary of State must, by regulations, establish a requirement for air travel providers to report annually on their use of sustainable aviation fuel.<br> (2) Regulations made under subsection (1) must specify—<br> (a) that the annual reports include figures for sustainable aviation fuel usage which can be easily understood, including expressed as—<br> (i) an absolute volume, and<br> (ii) proportion of all aviation fuel used; and<br> (b) that the annual reports are accessible to members of the public including by being made available on their websites.<br> (3) Any regulations made under subsection (1) must be made under the negative procedure.”

NC6

To move the following Clause—<br> <b>“Economic Impact of the Act</b><br> (1) The Secretary of State must lay before Parliament a report on the economic impact of the Act.<br> (2) This report must include, but shall not be limited to—<br> (a) the impact on the UK’s aviation fuel industry;<br> (b) the impact on the UK’s sustainable aviation fuel supply including the impact on all small, medium and large producers and potential importers of sustainable aviation fuel;<br> (c) the impact on international and domestic tourism in the UK; and<br> (d) the impact on passenger air fares.<br> <span class="wrapped">The report required by subsection (1) must be laid before Parliament within one year of this Act being passed.”</span>

NC7

To move the following Clause—<br> <b>“Targets for power-to-liquid aviation fuel usage</b><br> (1) The Secretary of State must, within 12 months of the passing of this Act, conduct a review of the power-to-liquid aviation fuel targets as set out in section (3) of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.<br> (2) The review carried out under subsection (1) must only consider—<br> (a) the effectiveness of the existing power-to-liquid aviation fuel target and;<br> (b) whether the target should be increased.<br> (3) In carrying out the review under subsection (1) the Secretary of State must consult with—<br> (a) producers of power-to-liquid aviation fuel;<br> (b) airlines;<br> (c) experts in sustainable aviation fuel production; and<br> (d) any other persons the Secretary of State deems appropriate.<br> (4) A report setting out the findings of the review must be published and laid before both Houses of Parliament.”

10

Clause 1, page 2, line 4, at end insert—<br> “(4A) The terms under subsection (4)(c) must include a requirement for the producer to consider the longevity of supply and relative environmental impact when prioritising between organic and synthetic derived sustainable aviation fuel solutions.”

1

Clause 1, page 2, line 4, at end insert—<br> “(4A) The Secretary of State may—<br> (a) direct a relevant company to provide any assistance the Secretary of State may require for the purpose of identifying producers in respect of which to make a direction under subsection (1), and<br> (b) make payments to the relevant company in respect of that assistance.<br> (4B) In subsection (4A) “relevant company” means a company that is limited by shares each of which is held by a Minister of the Crown.”

<p>This amendment allows the Secretary of State to direct a government-owned company to provide assistance for the purpose of identifying to whom revenue certain contracts should be allocated. The company might, for example, be directed to carry out an auction process.</p>

2

Clause 2, page 2, line 10, after “1” insert “(1)”

<p>This is consequential on Amendment 1.</p>

3

Clause 2, page 2, line 12, after “1” insert “(1)”

<p>This is consequential on Amendment 1.</p>

4

Clause 4, page 3, line 19, leave out subsection (9)

<p>The is consequential on Amendment 7 which relocates the definition of “company” to clause 16 so that it applies for the purposes of the whole Bill (since amendment 1 refers to companies).</p>

5

Clause 6, page 4, line 16, at end insert “(apart from costs incurred in complying with a direction under section 1(4A))”

<p>The is consequential on Amendment 1.</p>

11

Clause 6, page 4, line 19, leave out from “pay” to end of line 22 and insert “to the designated counterparty in each month a standardised levy on their relevant disposals of aviation fuel products in the preceding month that must be publicised on invoices expressed in pence per standard litre”

<p>This amendment requires the Secretary of State to set a standardised levy rate payable by all suppliers of aviation fuel, that must be publicised by suppliers of aviation fuel on invoices to their customers.</p>

6

Clause 8, page 5, line 9, leave out subsection (1) and insert—<br> “(1) Levy regulations may—<br> (a) confer functions on the designated counterparty in connection with the administration and enforcement of the levy;<br> (b) require the Secretary of State to assist the designated counterparty in connection with those functions by collecting information and providing it to the designated counterparty.<br> (1A) Levy regulations may require a person to provide information to the designated counterparty or the Secretary of State (on request or otherwise) for purposes connected with the administration and enforcement of the levy.”

<p>This amendment allows levy regulations to require the Secretary of State to assist the designated counterparty by collecting information and sharing it with the designated counterparty. It also allows the regulations to impose requirements on people to provide information to the Secretary of State.</p>

8

Clause 12, page 7, line 6, at end insert—<br> “(3) A direction given under subsection (1) must include a requirement for the designated counterparty to report on—<br> (a) the impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the proceeding 12 month period;<br> (b) a projection of the expected impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the following five year period.<br> (4) A report under paragraph (a) must be made within one year of the date of Royal Assent to this Act and annually thereafter.<br> (5) The Secretary of State must lay a report made under paragraph (a) before Parliament.”

<p>This amendment would require the designated counterparty to report on the impact that the revenue certainty mechanism has on passenger air fares.</p>

9

Clause 12, page 7, line 6, at end insert—<br> “(3) A direction given under subsection (1) must include a requirement for the designated counterparty, where a venue certainty contract would result in a new production facility, to prioritise entering into any such contracts with producers that will use UK owned technologies in that facility.”

<p>This amendment would require the designated counterparty to prioritise UK-based technology when entering contracts.</p>

12

Clause 12, page 7, line 12, at end insert—<br> “(3) Within twelve months of the passing of this Act, the Secretary of State must make a direction under subsection (1) which requires the designated counter party to prioritise entering at least one revenue certainty contract with a producer of Power to Liquid sustainable aviation fuel if doing so will allow for at least one plant to reach Final Investment Decision by 31 December 2026.”

7

Clause 16, page 8, line 15, at end insert—<br> ““company” means a company registered under the Companies Act 2006;”

<p>This is consequential on Amendment 1.</p>

3

Clause 1, page 2, line 4, at end insert—<br> “(4A) The terms under subsection (1)(c) must include a requirement for the producer to consider the longevity of supply and relative environmental impact when prioritising between organic and synthetic derived sustainable aviation fuel solutions.”

4

Clause 12, page 7, line 12, at end insert—<br> “(3) A direction given under subsection (1) must include a requirement for the designated counterparty to report on—<br> (a) the impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the proceeding 12 month period;<br> (b) a projection of the expected impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the following five year period.<br> (4) A report under paragraph (a) must be made within one year of the date of Royal Assent to this Act and annually thereafter.<br> (5) The Secretary of State must lay a report made under paragraph (a) before Parliament.”

5

Clause 12, page 7, line 12, at end insert—<br> “(3) A direction given under subsection (1) must include a requirement for the designated counterparty, where are venue certainty contract would result in a new production facility, to prioritise entering into any such contracts with producers that will use UK owned technologies in that facility.”

NC3

To move the following Clause—<br> <b>“Review of the supply of bioethanol for use in sustainable aviation fuel production</b><br> (1) The Secretary of State must, within six months of the passing of this Act, publish and lay before Parliament a report reviewing measures to encourage the supply of materials for Sustainable Aviation Fuel.<br> (2) The report under subsection (1) must include—<br> (a) an assessment of the impact of the closure of bioethanol plants on the ability to encourage overall increases in sustainable aviation fuel production;<br> (b) options for mitigating any adverse impacts on the availability of supply of sustainable aviation fuel by the closure of bioethanol plants;<br> (c) recommendations for any necessary Government action to promote a stable supply of bioethanol for Sustainable Aviation Fuel.”

<p>This new clause would require the Secretary of State to lay before Parliament a report outlining measures to encourage the supply of materials for SAFs, including considering the impact of bioethanol plant closures on encouragement to increase supply.</p>

NC4

To move the following Clause—<br> <b>“Review of the impact of the Act on progress towards achieving net zero aviation emissions by 2050</b><br> The Secretary of State must, within six months of the day on which this Act is passed and every twelve months thereafter, lay before Parliament and publish a report on the impact of the measures in this Act on progress towards meeting its target of achieving net-zero emissions from aviation by 2050.”

<p>This new clause would require the Secretary of State to report each year on the impact of the Act on the target to achieve net-zero aviation by 2050.</p>

NC5

To move the following Clause—<br> <b>“Increasing greenhouse gas saving potential of SAF</b><br> (1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a report which sets out a strategy for increasing the greenhouse gas emission saving resulting from the promotion of sustainable aviation fuel production in the United Kingdom.<br> (2) The report required under subsection (1) must include, but not be limited to—<br> (a) proposals for incentivising the research and development of Sustainable Aviation Fuels that maximise greenhouse gas emission savings;<br> (b) an assessment of, and recommendations for increases to, the minimum required greenhouse gas emission reduction in order for a Sustainable Aviation Fuel to be issued a SAF certificate;<br> (c) an assessment of, and recommendations for increases to, minimum ratios for renewable content in blended sustainable aviation fuels, for the purpose of more quickly reducing greenhouse gas emissions.<br> (3) Twelve months after the publication of the report required under subsection (1) and within every twelve months thereafter, the Secretary of State must publish a further report which—<br> (a) sets out progress against the strategy, and<br> (b) makes any necessary adjustments to the strategy as a result of developments in the sustainable aviation fuel industry.<br> (4) In this section, “SAF certificate” has the meaning given in article 2 of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”

NC6

To move the following Clause—<br> <b>“Review of International Alignment of Sustainable Aviation Fuel Support under this Act with schemes in the ECAA</b><br> (1) Within twelve months of the day on which this Act is passed, the Secretary of State must publish and lay before Parliament a report detailing the degree to which the levy imposed under section 6 and the revenue certainty mechanism established under this Act aligns with relevant policies and support schemes for sustainable aviation fuel in the European Common Aviation Area (ECAA).<br> (2) The report required under subsection (1) must include, but is not limited to—<br> (a) an assessment of the current level of alignment of the levy and the revenue certainty mechanism with ECAA policies and support schemes concerning sustainable aviation fuel; and<br> (b) recommendations for specific steps or policy adjustments that may be required to increase alignment between aviation in the United Kingdom and the ECAA, where such alignment would be beneficial for the United Kingdom's sustainable aviation fuel industry.”

<p>This new clause requires the Secretary of State to publish a report within twelve months, assessing the alignment of the Sustainable Aviation Fuel levy and revenue certainty mechanism with the European Common Aviation Area.</p>

NC7

To move the following Clause—<br> <b>“Review of the impact of the Act on the Sustainable Aviation Fuel Industry and measures to further encourage production</b><br> (1) Within twelve months of the day on which this Act is passed, the Secretary of State must lay before Parliament and publish a report assessing the impact of this Act on the strength of the United Kingdom’s sustainable aviation fuel industry and how the production of sustainable aviation fuel might be further encouraged.<br> (2) The report required under subsection (1) must include, but is not limited to—<br> (a) an assessment of the impact of this Act on the level of production of sustainable aviation fuel in the UK and its use by the aviation industry;<br> (b) recommendations on how the production of sustainable aviation fuel in the UK can be further encouraged including—<br> (i) measures to encourage innovation leading to commercial take-up,<br> (ii) measures to encourage the construction of sustainable aviation fuel plants, and<br> (iii) any further support mechanisms which would encourage the increased competitiveness of and production by the UK sustainable fuel industry;<br> (c) a statement on how the findings of the report will be addressed in order further encourage the production of sustainable aviation fuel.<br> (3) In preparing the report required under subsection (1), the Secretary of State must consult relevant stakeholders, including, but not limited to—<br> (a) sustainable aviation fuel producers,<br> (b) aviation fuel suppliers,<br> (c) airlines,<br> (d) environmental organisations,<br> (e) academic experts, and<br> (f) representatives of impacted communities.”

<p>This new clause requires the Secretary of State to publish a report within twelve months, assessing the impact of the Act on the strength of the UK’s Sustainable Aviation Fuel industry and any measures which might further encourage the production of sustainable aviation fuel. The report must include assessments of the impact of the Act on production and use of Sustainable Aviation Fuel and include a statement on how the findings of the report will be addressed.</p>

NC8

To move the following Clause—<br> <b>“Review of the Potential Conversion of Industrial Sites for Sustainable Aviation Fuel Production</b><br> (1) Within twelve months of the day on which this Act is passed, the Secretary of State must lay before Parliament and publish a report into the merits of converting disused oil refineries and other relevant existing industrial sites into facilities for the production of sustainable aviation fuel.<br> (2) The report required under subsection (1) must include, but is not limited to—<br> (a) an assessment of the technical and operational feasibility of such conversions;<br> (b) an evaluation of the economic viability of such conversions;<br> (c) the cost effectiveness of such conversions compared to new build production facilities, taking into account—<br> (i) the ability to use existing infrastructure such as tanks and pipelines;<br> (ii) the complexities of environmental remediation and site preparation.<br> (iii) the availability and suitability of a skilled workforce within proximity to such sites.<br> (d) recommendations for government actions to facilitate and incentivise such conversions, where they are deemed beneficial for enhancing the resilience and increasing the domestic production of sustainable aviation fuel industry.<br> (3) In preparing the report required under subsection (1), the Secretary of State must consult relevant stakeholders, including, but not limited to—<br> (a) sustainable aviation fuel producers,<br> (b) representatives of the oil and gas industry and workforce,<br> (c) environmental organisations,<br> (d) local authorities, and<br> (e) academic experts.<br> (4) The report must be accompanied by a statement from the Secretary of State on how the findings of the report will be addressed through Government action.”

<p>This new clause mandates the Secretary of State to publish a report within twelve months, reviewing the merits of converting disused oil refineries and other industrial sites for Sustainable Aviation Fuel production.</p>

2

Schedule, page 10, line 28, after “Wales” insert “or Northern Ireland”

<p>This amendment ensures that an unpaid penalty is recoverable in Northern Ireland as if it were payable under an order of the county court, as is the case in England and Wales.</p>

NC2

To move the following Clause—<br> <b>“Review of Sustainable Aviation Fuel Levy Impact</b><br> (1) The Secretary of State must, within twelve months starting on the day on which Regulations are made under section 6 of this Act, publish and lay before Parliament a report which reviews the impact of those Regulations on the Sustainable Fuel Industry in the UK.<br> (2) The report under subsection (1) must include, but is not limited to—<br> (a) an assessment of the impact of the levy on—<br> (i) demand for sustainable aviation fuel (“SAF”) in the United Kingdom, with particular regard to whether the levy has increased production of and demand for SAF in such away as meets SAF Mandate obligations; and<br> (ii) demand and production of UK produced SAF compared to non-domestic production;<br> (b) an analysis of any beneficial impact of Regulations made under section 6 of this Act as opposed to projections of benefits of using alternative revenue streams to fund the revenue certainty mechanism, including but not limited to, aviation industry contributions to the UK Emissions Trading Scheme; and<br> (c) recommendations for any further actions or policy adjustments that may be required based on the findings of the review.<br> (3) When carrying out a review under this section the Secretary of State must consult relevant stakeholders, including but not limited to—<br> (a) aviation fuel suppliers,<br> (b) sustainable aviation fuel producers,<br> (c) airlines,<br> (d) consumer representatives, and<br> (e) environmental groups.<br> (4) In this section, “SAF Mandate” means an obligation imposed on a provider of SAF under the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”

<p>This new clause would require the Secretary of State to carry out a review of the effect of the introduction of the levy; sets out things the review must consider; and stakeholders the Secretary of State must consult during the review.</p>

1

Clause 15, page 8, line 7, leave out paragraphs (c) and (d) and insert—<br> “(c) section 10 (payment of surpluses to levy payers);<br> (d) section 11(4)(a) (power to amend maximum financial penalty);”

<p>This amendment switches the order of paragraphs (c) and (d) so that the sections referred to appear in sequential order. It also corrects a cross-reference. The substance is unchanged.</p>

NC1

To move the following Clause—<br> <b>“Black bin waste</b><br> (1) The Secretary of State must, within two months of the passing of this Act, publish and lay before Parliament, guidance on the opportunities available for local authorities in England to support the production of Sustainable Aviation Fuel through the use of black bin waste.<br> (2) Within six months of the publication of guidance under subsection (1) the Secretary of State may, by regulation, require local authorities in England to prioritise the creation of sustainable fuel in the disposal of their black bin waste unless the local authority deems it to be significantly financially disadvantageous to do so.<br> (3) Regulations under subsection (2) must define the meaning of “significantly financially disadvantageous” for the purposes of this section.<br> (4) Regulations made under subsection (2) are subject to the affirmative resolution procedure.”