Sustainable Aviation Fuel Bill 2024-26

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.”