Академический Документы
Профессиональный Документы
Культура Документы
Jenefer Plummer
From: MES-FT
Sent: Wednesday, 6 January 2016 9:43 AM
To: MES-FT
Cc: Bridget Rankin
Subject: TRIM: FW: Briefing Request - Due by Friday 22 January (TIME CRITICAL)
Attachments: Biofuels rough timeline
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Title: Biofuels Ethanol mandate project timeline on the milestones
Division: Policy
Contact: Bridget
Due: 20 January 2016 (critical date)
Notes: See below MO request
JB
- Policy provided a rough project timeline on the milestones for the Biofuels/Ethanol mandate project
(attached).
- Similarly to FTMIN15/3515, the MO are requesting a brief and project timeline (similar to tab A of
FTMIN15/3515) for the Biofuels/Ethanol mandate project.
- The project timeline should include dates for major milestones such as the consultation process,
commencement of legislation, advertising campaign, and launch of the online fuel board etc.
Thanks,
Steph
1
Page 2 of 321
Jenefer Plummer
Matt/Steph as requested, below is approx timing for Biofuels below and some notes from my brief discussion with
IPART. Of the events in the timetable their component is the biggest unknown.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
January/February
Stakeholder roundtable to facilitate consultation on the draft Bill. Key stakeholders also provided with
exposure draft.
Procurement of ICT provider for fuel board comparison tool.
Comprehensive education campaign developed to educate consumers about E10 and increase acceptance,
including undertaking research on consumer awareness (January to July).
March
Legislation tabled in Parliament. Passed by end of March, otherwise carried over to next session in May.
IPART commence formal price review.
July
Legislation commences and fuel board comparison tool goes live.
Education campaign starts. Campaign expected to extend across approx 2 years.
IPART complete price review and make determination. This would be ideal, they have advised that 9 to 12
months is standard (NB. see additional notes below).
1
Page 3 of 321
Hi Matt
Following our discussion yesterday, a response to your questions regarding project timelines and stakeholder consultation is set out below:
IPARTs report: milestones and timing for delivery
It is preferable for IPART to deliver a final report by July 2016 (6 months); however delivery by October 2016 would be adequate (9 months). The TOR need to
include IPARTs ongoing monitoring and review role (suggest a review within 2 years).
An issues paper and draft report are not considered necessary as the question to be addressed has a narrow scope. The Government has already announced
IPART will set the maximum ethanol price. The number of stakeholders is relatively low and for the most part already known (see suggested list below).
The May 2015 report on options to increase ethanol uptake was completed in 6 months and can be used as background analysis for the next report.
The due date depends on whether information from Manildra is necessary to deliver the report; it may not depend on commencement of the new legislation
ie:
oOut of scope My reading of the
legislation is that IPART already has the power to set a price for ethanol under s12A of the IPART Act if exercised as part of a Terms of Reference;
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
ie there is nothing stopping IPART from commencing its review immediately. It is the ongoing review/price-setting power which requires new legal
powers (which should be included in the Bill).
o this leaves the power to gather information. Again, IPART should already be able to do this as part of a Terms of Reference issued under s12A IPART
Act.
o In the first instance I suggest IPART seek to obtain Manildras data on production costs etc voluntarily. It would be useful to find out from IPART how
critical this information is to setting a maximum price, ie whether data from other sources could be used instead (for instance the Department of
Industries review of its ethanol rebate discusses pricing and costs
http://www.industry.gov.au/Office-of-the-Chief-Economist/Publications/Documents/other/asssessment-ethanol-production-grants-program.pdf)
o If Manildra refuses to provide data and it is critical, the new Bill could empower IPART to compel suppliers (including but not limited to Manildra) to
provide information (may be contentious due to commercial in confidence principles). In this scenario the timing of IPARTs report does depend
on the new legislation. However the TOR could be drafted to include a floating date eg report to be delivered within 2 months of commencement
of the Bill.
The above points should be treated as preliminary only and subject to further legal advice. I have sought this advice from our Legal Branch on the basis the
Premier administers the IPART Act, although ordinarily this should be a matter for Fair Trading .
Potential stakeholders for targeted consultation (Out of scope )
Government
Australian Competition and Consumer Commission
Department of Industry (previously administered the federal ethanol rebate program)
Department of Energy and Water Supply (Qld)
Industry
Manildra Group
Suppliers?
Producers: Wilmar, Dalby (Qld)
Primary wholesalers (listed in IPARTs report)
Large retailers: Woolworths and 7-Eleven Stores
Small/medium retailers in urban, regional and remote areas
Industry peak groups
Biofuels Association of Australia
Australian Institute of Petroleum (wholesalers)
Australasian Convenience and Petroleum Marketers Association (distribution and retail)
Federal Chamber of Automotive Industries (not critical)
Consumer groups
NRMA (runs BowserBuster)
Choice
Public Interest Advocacy Centre
Given the next meeting of the Tribunal is on 20 January I suggest we have a meeting with IPART next week, which DPC is happy to arrange. We should aim to
circulate draft material for the TOR to IPART before the meeting.
Very happy to discuss further.
Kind regards
Jessica
Jessica Rossell | Principal Policy Officer
Resources and Land Use, Department of Premier and Cabinet
Level 12, 52 Martin Place, Sydney | GPO Box 5341, Sydney NSW 2001
T: 02 9228 @dpc.nsw,gov.au | dpc.nsw.gov.au
Page 4 of 321
Hi Matt
Ive had a go at drafting the ethanol TOR following a discussion with IPART. IPART advised the
option of requiring Manildra to use a price methodology could be more flexible than a straight
out fixed price and would improve transparency by allowing volume fuel sellers to use the
methodology to cross check Manildras prices.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
IPART has flagged a couple of issues to consider for our meeting on Thursday:
Issuing a TOR under s 9 or s12A of the IPART Act: IPART advised the main difference is
s12A allows IPART to use its information gathering powers under Part 3 Division 7. While
these powers could equally be set out under a TOR issued under s9, it seems easier to
simply issue the TOR under s12A. The exception would be if Fair Trading/ your Minister
want to issue the TOR rather than the Premier or, if you want to augment/reduce the
Division 7 powers (in which case the TOR should be issued under s9)
Currently IPART can only set prices for entities listed in Schedule 1 of the Act; for other
pricing matters it only has the power to recommend prices. Out of scope
If IPART is to start its review now it will be operating based on its
existing powers under the IPART Act. Rather than make any amendments to the IPART
Act, a simpler option may be to ensure the drafting of the Bill refers to the specific TOR
we are now developing eg the Bill could provide ethanol suppliers must supply
wholesale ethanol at or below either the maximum wholesale price, or using the price
methodology, as recommended by IPART in its Final Report XXX on Date XX.
Page 5 of 321
TERMS OF REFERENCE
Investigation and report into the biofuels industry and recommending a wholesale
price for ethanol in NSW
I, Michael Baird, Premier of New South Wales, under section 12A of the Independent Pricing
and Regulatory Tribunal Act 1992 (Act), refer the following matter to the Independent Pricing
and Regulatory Tribunal (Tribunal) for investigation and report:
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
1. The Tribunal must assess and recommend:
(b) a price methodology which ethanol suppliers must apply when selling
wholesale ethanol to volume fuel sellers.
(a) improving the ability of E10 to offer consumers value for money;
(b) encouraging competition and the entry of new ethanol producers and
suppliers into the NSW market; and
4. The Tribunal is required to consult with the public and provide a Final Report to
the Premier by 31 July 2016.
5. The Tribunal must monitor the retail E10 market and report on the effect of
regulating the wholesale ethanol price has on E10 prices by 20 December
2017 or by a subsequent date as advised by the Premier.
Page 6 of 321
Sonya
Greg was involved. My understanding when he left was that he felt the new standard was
not achievable for Manildra (and possible new entries to the NSW market) to meet so
referencing that standard would negatively impact on the ability for NSW to continue to
achieve the level of sales it currently has and to improve to reach the mandate in future. I
guess you can investigate this during your upcoming consultation though to test whether
this is the same view held by the industry.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Regards
Kathy, we are going to update the reference in the Regulation to the latest version of the standard. I wasnt
aware that you were still a member of the roundtable. Just curious how much it costs? From old papers it
looks like Greg was participating in the development of the new standard.
Sonya
I just wanted to let you know that the renewal for the RSB membership arrived in the week
before the Christmas break and Katharine has advised that this Department is not
renewing the membership.
Greg had previously informed me that the reference in the Biofuels Act to the (earlier draft)
RSB sustainability standard was the reason for the membership. I have not confirmed with
the Roundtable people that this is necessary but wanted to flag it with you as I send the
notification email. Perhaps this standard is an aspect that can be considered in the review
of the Biofuels Act following the recent Cabinet decision on the mandate.
Regards
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
This message is intended for the addressee named and may contain confidential information. If you are not the
intended recipient, please delete it and notify the sender. Views expressed in this message are those of the
individual sender, and are not necessarily the views of their organisation.
**********************************************************************************
This email message and any attached files is confidential and intended solely for the use of the
individual or entity to whom it is addressed and may contain information that is privileged,
confidential and/or exempt from disclosure under applicable law. If you have received this email in
error, delete all copies and notify the sender.
This message is intended for the addressee named and may contain confidential information. If you are not the intended recipient, please delete it
and notify the sender. Views expressed in this message are those of the individual sender, and are not necessarily the views of their organisation.
Page 8 of 321
Thanks Rhys, employment numbers I received from Manildra and also in the report they
commissioned from Deloitte Access Economics http://www.ctcb.qut.edu.au/documents/dae-
corelli-biorefinery-report.pdf .
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Marty
Marty
Comments below. I don't have the source of most of these. Sonya may be able to help.
RB
Rhys Bollen
A / Assistant Commissioner, Policy & Strategy | NSW Fair Trading | Department of Finance,
Services & Innovation |p02 9338 | m
|e @finance.nsw.gov.au|www.fairtrading.nsw.gov.au|Level 9,2-24 Rawson
Place, Sydney NSW 2000
Hi Rhys, Im finishing the Ministers 2nd read for biofuels for today. I just wanted to
confirm with you if we can use the below facts?
According to recent performance data United Group is tracking at around 5
per cent, meaning E10 represents almost half of their total fuel sales. RB:
Yes. About 4.5% ethanol so e10 about 45%.
Manildra Group has invested over $330 million in their ethanol plant and
equipment in NSW. RB: I don't have the source of this.
63 countries across the globe have ethanol mandates.RB: I don't have the
source of this.
Across Australia more than 5,000 wheat, sugar and grain farmers rely on
ethanol production. It is safe to say without the mandate, many of these
Page 9 of 321
jobs would no longer be viable. RB: I don't have the source of this.
Nationwide ethanol production delivers 3,000 direct jobs and a further
20,000 indirect jobs. The industry contributes $402 million in GDP every
year.RB: I don't have the source of this.
Many thanks,
Marty
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Marty Gray
Policy Adviser
Office of the Minister for Innovation and Better Regulation
_____________________________________________
Email:
<image001.png>
@minister.nsw.gov.au
Tel (52MP):02 8574
Mobile:
Page 10 of 321
So what is ethanol?
Ethanol is an alcohol, which can be fermented from many sources of starch, including
corn, wheat, grain sorghum, barley, and potatoes, and from sugar crops such as sugar
cane and sweet sorghum.
We sell our ethanol into a range of industries including:
Beverage -
- Vodka, gin, blended whisky, cordials, RTD
Food
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
- Vinegar, extracts, liquorice, food colourings in baking
Pharmaceutical
- Blood plasma, hand sanitisers, tableting, powders
Personal care
- Antibacterial soaps, mouthwashes, hairspray, deodorants,
Industrial
- Solvents, printing inks, detergents.
And of course fuel. The most common product sold in Australia is E10 produced when
unleaded fuel is enhanced by 10% Australian made ethanol. E85 (15% unleaded fuel and 85%
ethanol) is sold at limited fuel retailers.
BENEFIT OF ETHANOL
Ethanol sells itself. Its cheap, clean, reliable and its home grown right in north Queensland.
ETHANOL IS GOOD FOR YOUR CARS. START YOUR ENGINES
Nearly all vehicles manufactured and imported into Australia since 1986 are E10
compatible.
With car manufacturing ceasing in Australia from 2017, all vehicles will be imported
into Australia. Vehicles will not be specifically produced for an Australian market.
More importantly for consumers, nearly all vehicles manufactured and imported into
Australia will be manufactured and imported into counties that have ethanol
mandates.
ETHANOL IS HIGH PERFORMING. LAP AFTER LAP OF / ETHANOL MOVES FAST / LAP AFTER LAP
ON AUSTRALIAN ETHANOL
Ethanol is the highest performance fuel on the market, with 100% ethanol an octane
rating of 108. E10 has an octane rating of 95. E10 has a 35% oxygen content allowing
for a more complete burn, better combustion and less emissions.
Ethanol blends are revolutionizing sports internationally, emerging as one of the
world's peak performance fuels. In 2009, the V8 Supercars- Australia's peak
motorsport series recognised its benefits and switched to E85 including for the
weekends iconic Bathurst 1000.
Page 11 of 321
The Australian Medical Association, Health and Lung Association supports E10 along
with 63 countries worldwide who have mandated it use, with the health benefits the
primary driver for change. E10 delivers a 30% reduction of greenhouse gases and
other harmful exhaust emissions including cancer-causing carcinogens and PM2.5
toxins that are deadly when inhaled.
Buying home grown ethanol when you fill up can help make our air cleaner and
healthier for generations to come.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
FUELLING AUSTRALIA. GOOD FOR FUEL SECURITY
Ethanol reduces our dependence on imported oil, expands the supply of our fuel and
reduced our Australian trade deficit.
Since 2000, our dependence on imported liquid fuel and oil for transport has grown
from around 60% to over 90%. There is no plan to stop Australias dependency
growing to 100% or halting the further decline in our fuel security. This dependency is
costing us $25 billion in foreign debt every year.
Australia is also a member country of the International Energy Agency. Australia with
only 71 days of stockholding of oil was the only country out of 28 member countries
that failed to meet its 90 day net oil import stockholding level. This is equivalent to 23
days of actual consumption of liquid fuels. With tensions in the Middle East
increasing, our limited retail stockholding would impact all Australians, our
businesses, and Government services such as our Defence Forces and emergency
services. No one would be immune from the impact of fuel shortages.
By 2030, Australia will have no refineries, less than 20 days liquid fuel and 100%
imported liquid fuel dependency. Manildra is the now the only liquid fuel producer in
NSW.
Increasing our production of ethanol in Australia will decrease our reliance on foreign
oil and provide us with national security now and into the future.
ITS BETTER VALUE AT THE PUMP
Ethanol production could play a critical role in revitalising north Queenslands regional
areas by stimulating economic growth.
Page 12 of 321
There are three commercial fuel-grade ethanol plants in Australia, with a combined
capacity of 440 million litres per year. Our Manildra Group plant is at Nowra on the
south coast of New South Wales and we use wheat to produce ethanol. United
Petroleum owns an ethanol plant, in Dalby, Queensland which uses red sorghum.
Wilmar owns an ethanol plant in Sarina, which uses the molasses from sugar cane.
Internationally, the ethanol industry continues to make a significant contribution to
the economy in terms of job creation, generation of tax revenue and displacement of
imported crude oil and petroleum products and we can do the same here.
Currently Australian ethanol production contributes $402 million in GDP every year.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
The industry also delivers 3,000 direct jobs and a further 20,000 indirect jobs with the
majority of these in rural and regional areas. At the heart of ethanol production are
generations of Australian wheat, sugar and grains farmers more than 5,000 of them
across the country.
In the United States in 2014, the ethanol industry created and supported nearly
400,000 new jobs across the country that cannot be exported or outsourced. In
addition, ethanol production contributed nearly $53 billion to the nations GDP.
As the U.S. produces 58% of the worlds ethanol production. In 2014 the ethanol
industry experienced a record-breaking year the USA produced 14.3 billion gallons
of ethanol. Thats nearly 3 times the amount of fuel Australia consumes in a year.
There are over 63 countries that have national biofuel mandate or target, including
the United States, European Union, Canada, United Kingdom, China and Thailand.
The United States mandates 10% ethanol volume of total fuel sales, every litre of
petrol (regular and premium grades) contain 10% ethanol. In Brazil, its 27% ethanol.
In the United States there is pockets of high ethanol blends being sold E85 is sold in
over 4000 service stations across the country and E15 is sold in over 20 states. All
standard vehicles model year 2001 or newer are approved to use E15 (15% ethanol).
Popular automakers such as Audi, Ford, General Motors, Honda and Jaguar and more
now approve the use of higher fuel ethanol blends in their 2015 model vehicles.
Vehicles imported into the European Union must be E20-compatible. By 2020, the EU
aims to have 10% of total volume consumption of transport fuels come from
renewable sources.
OBSTACLES
There has been an extremely successful campaign from the likes of big oil not to allow an
ethanol mandate. This is quite ironic considering these same oil companies own ethanol
plants around the world.
There has also been a significant misunderstanding from consumers on what ethanol is, how
it is made, its benefits, water usage and food v fuel myths.
NOTHING GOES TO WASTE. NOT EVEN WASTE.
Page 13 of 321
The ethanol industry has been in place for over 35 years internationally and 25 years
in Australia. In Australia, we are well into second and third-generation technology,
which has dramatically improved efficiency, lowered energy and water demand, and
further reduces the environmental footprint of biofuels production.
There are significant increased demands on Australian water supplies with growing
populations in our cities, urban sprawl into rural areas, and increased agricultural and
recreational demand.
Manildras world-first sustainable Nowra plant has an advanced water treatment
system recycles 40 million litres of water (equivalent to 16 Olympic pools) every week.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
It turns waste materials into fresh water for re-use in manufacturing processes. The
remaining water is irrigated on our environmentally-friendly farm supporting over
3,500 head of cattle.
In 2013, Manildras Nowra facility was the first plant in the world to receive the
internationally-recognised sustainability certificate from the Roundtable on
Sustainable Biomaterials. We maintain this certification through the implementation
of RSBs environmental, social and economic principles and criteria.
Ethanol production makes more than fuel it also creates highly valuable co-products.
Carbon dioxide
During our process of distilling ethanol, fermentation releases carbon gases. Our
Nowra plant captures those carbon gases and sell it to beverage companies for
carbonation. We produce enough CO2 in a day to fill 36 million cans of carbonated
drinks.
Distillers grain
Ethanol production removes the starch from the grain. The remainder protein, fats
and oils are collected and distributed as a nutritious, low-cost high supplementary
animal feed that replaced a higher volume of field wheat, thereby saving money for
livestock producers.
This high-protein feedstock is sold into both the domestic and export feed markets
(beef cattle, dairy cattle, pig and poultry). For eight years the Manildra Group has
supplied dried distillers grain (DDG) and syrup at a lower price compared to wheat
feedstock. The cost of weight gain has been significantly reduced switching from
whole grain to ethanol by-product feedstock. This feedstock is a valuable source of
protein, energy and pasture supplementation for the livestock industry.
LAND USAGE where does our grain go? Weve got plenty of it to go around!
Even with increased ethanol production, wheat production has been able to meet and
exceed the demands for food, fuel and exports. Indeed, both wheat and sorghum are
still being exported out of Queensland despite over 80% of the state being drought-
declared at present.
Australia is utilising its resources through integrated manufacturing processes and
using waste streams to produce ethanol.
Page 14 of 321
Domestic use
Seed 806,819
Food/milling/industrial 2,837,481
Feed 4,271,736
Exports 16,717,728
Total demand 24,633,764
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 15 of 321
Thanks Steph
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi all,
Following our meeting with IPART, the below is their proposed timeline in relation to the review
of the wholesale price of ethanol:
- If Terms of Reference (ToR) are approved by Premiers office by end of next week (13
May), an issues paper can be prepared and released within 3 weeks (week commencing
6 June);
- Generally there is a 4-6 week submission period for the issues paper, with some
stakeholders requesting an extension, but IPART will try to stick to 4 weeks (this takes us
to about 1 July);
- A public hearing will also take place during the submission period (anytime between
first week of June to first week of July), with IPART concurrently asking Manildra to
produce requested information (they mentioned that they can get the ball rolling on
requesting this information once the ToR have been finalised/approved);
- Section 22 of the IPART Act will provide Manildra with a 6 week response time (date on
this can be as early as 27 June or as late as 18 July, depending on the ToR and release
of issues paper);
- IPART will have a draft report by September, with another 4 week submission period for
stakeholders to respond (takes us to October, with the potential of a second public
hearing during the submission period);
- If the above dates are met, we can expect a final report by end of December (before
Christmas)
- Also to note, if the Biofuels Act commences within the above 6 months, the
recommendation in the final IPART report will automatically become a determination.
Thanks,
Steph
Page 16 of 321
Jenefer Plummer
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
HP TRIM Record Number: FTMIN16/1111
Hi MES,
Can we please get a response prepared to the attached corro by May 20?
Thanks,
1
Withheld pending third party review rights
Withheld pending third party review rights
Dear All
The hyperlink to the RSB webpage that has Manildras current certification. Of interest it appear
that Manildra is the only Australia Company that has a certification. Out of scope
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
http://rsb.org/certification/participating-operators/
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Rod / Val
We have an allegation from ACAPMA (attached) that appears to warrant further investigation.
Under the act, only 'sustainable' biofuel counts towards the mandate. ACAPMA alleges the
Manildra's ethanol does not comply. If so, this would potentially mean:
- the volume sellers aren't complying with the mandate, to the extent they are relying on ethanol
from Manildra, and
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
- Manildra may have engaged in misleading conduct if they have made representations about
whether their ethanol complies.
Regards,
Rhys Bollen
A / Executive Director, Policy & Strategy | Better Regulation | Department of Finance, Services &
Innovation |p02 9338 | m |e @finance.nsw.gov.au|Level 9,2-
24 Rawson Place, Sydney NSW 2000
Hi Rhys
Can we please get some advice on this? Who is responsible for issuing the
RSB certificate?
Thanks
Matt
Dear Minister,
Page 27 of 321
Yours sincerely,
Mark McKenzie
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Page 28 of 321
Jenefer Plummer
Hi Reyhan,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
James sent the original email with the attachment (but I've attached it to this email also).
An SNR would be fine, if a brief is already being prepared for IM16/13520. Otherwise, if timing is an issue, a letter
for each Manildra and ACAPMA is fine.
Thanks,
Steph
-----Original Message-----
From: MES-FT [mailto:MES-FT@finance.nsw.gov.au]
Sent: Wednesday, 11 May 2016 3:14 PM
To: Stephanie Matti; MES-FT
Subject: RE: HP Records Manager Minister's Inwards : IM16/13610 : Corro from Mark McKenzie CEO (ACAPMA) re
independent review of Manildra's RSB Certification
Importance: High
Hi Steph.
Reyhan
-----Original Message-----
From: Stephanie Matti [mailto: @minister.nsw.gov.au]
Sent: Wednesday, 11 May 2016 10:43 AM
To: MES-FT
Subject: RE: HP Records Manager Minister's Inwards : IM16/13610 : Corro from Mark McKenzie CEO (ACAPMA) re
independent review of Manildra's RSB Certification
Hi MES,
Thanks,
Steph
-----Original Message-----
From: Reception Dominello
Sent: Wednesday, 11 May 2016 10:39 AM
To: MES-FT@finance.nsw.gov.au
1
Page 29 of 321
Cc: Public Dominello's Office_Email; Stephanie Matti
Subject: HP Records Manager Minister's Inwards : IM16/13610 : Corro from Mark McKenzie CEO (ACAPMA) re
independent review of Manildra's RSB Certification
Thanks
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Record Number : IM16/13610
Title : Corro from Mark McKenzie CEO (ACAPMA) re independent review of Manildra's RSB Certification
2
Out of scope
Page 31 of 321
Out of scope
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Wednesday, 11 May 2016 11:19 AM
To: Sonya Thompson; Michael Cooper; Sue Honeybrook; Natahnee Veitch; Jessica Brice; Rhys Bollen
Cc: Matt Press; Susan Waddell
Subject: RE: labelling of biofuel blends
Thanks Sonya
So who actually named the fuel E10? Did we do that, or is that the name that the industry has
come up with? Did Manildra come up with it? Would there be any process wed have to go
through to introduce a new name? Would it be legislated? Would we have to get agreement
from stakeholders MO? Industry? Manildra?
Sorry, just need to fully understand what this means and what might be involved in moving
forward
Thanks
MJ
At the meeting yesterday we discussed the labelling requirements for E10. The Commonwealth
simplified the labelling. E10 labelling standard is:
All pumps dispensing ethanol blend petrol must clearly display one of the following:
the words 'Contains up to x% ethanol' (wherexis no less than the percentage of ethanol in
the petrol); or
the words 'Contains y% ethanol' (whereyis the percentage of ethanol in the petrol).
In preparing the amendments to the Biofuels Act we did consider future proofing by
introducing new terminology, which is biobased petrol and biobased diesel signalling that
ethanol and biodiesel are not the limits of possible biofuels. It is certainly something we can
Page 32 of 321
think about.
Sonya Thompson
Senior Policy Officer, Policy & Legislation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
NSW Fair Trading | Department of Finance, Services and Innovation
L9E McKell Building, Rawson Place NSW 2000 - www.fairtrading.nsw.gov.au
Page 33 of 321
From: RMLPolicySM
Sent: Monday, 16 May 2016 9:41 AM
To: Sonya Thompson
Cc: RMLPolicySM; Matt Press; Warren Mcallister
Subject: FTMIN16/1139 : Min No IM16/13920 - Reps obo Mr Mark McKenzie regarding the biofuels
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
act
FAA
Document : RML
Type (FT)
Record : FTMIN16/1139
Number
Title : Min No IM16/13920 - Reps obo Mr Mark McKenzie regarding the biofuels act
Author : Mark McKenzie
Executive : FAA
Request
Notes : related and travelling with FTMIN16/1110 - prepare single response to MP
Other : Alicia Facal (Other)
Contact
Related : Related to: FTMIN16/1110: Min No IM16/13610 - Corrospondence from Mark
Records McKenzie CEO (ACAPMA) regarding independent review of Manildra
Page 34 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: RMLPolicySM <rmlpolicy@finance.nsw.gov.au>
Cc: Matt Press < @finance.nsw.gov.au>
Subject: RE: FTMIN16/1111 : Min No IM16/13520 - Correspondence from Dick Honan of
Manildra Group regarding the ethanol mandate
From: RMLPolicySM
Sent: Wednesday, 11 May 2016 4:57 PM
To: Sonya Thompson
Cc: Matt Press; RMLPolicySM
Subject: FTMIN16/1111 : Min No IM16/13520 - Correspondence from Dick Honan of Manildra Group
regarding the ethanol mandate
Importance: High
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1111
Evelyn
Document : RML
Type (FT)
Record : FTMIN16/1111
Number
Date Due : Tuesday, 17 May 2016
Title : Min No IM16/13520 - Correspondence from Dick Honan of Manildra Group
regarding the ethanol mandate
Author : John Thomas Honan
Response : MINISTER (INNOVATION & BETTER REGULATION)
By
Executive : Date Critical
Request
Other : Alicia Facal (Other)
Contact
Related : Related to: FTMIN16/1110: Min No IM16/13610 - Corrospondence from Mark
Records McKenzie CEO (ACAPMA) regarding independent review of Manildra
Page 35 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 36 of 321
Matt, Ive read your comments and revisions and I have a few issues. The main point I was
making in referring to the standards own audit process was that neither IPART, the Minister nor
the Expert Panel have any authority to audit for compliance with the standard as ACAPMA is
requesting. Referring ACAPMAs letter to RSB gives the letter a status and recognition it does
not warrant. I suggest instead that, if we do anything at all, it is to refer the letter to the Expert
Panel for advice. After that, we could ask volume fuel sellers to confirm that the ethanol they
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
are counting complies with the relevant standard.
Sonya
When you have a moment can you please come around to discuss.
From: RMLPolicySM
Sent: Wednesday, 11 May 2016 4:49 PM
To: Sonya Thompson
Cc: Matt Press; RMLPolicySM
Subject: FTMIN16/1110 : Min No IM16/13610 - Corrospondence from Mark McKenzie CEO
(ACAPMA) regarding independent review of Manildra
Importance: High
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1110
Evelyn
------< HP TRIM Record Information >------
Page 37 of 321
Document : RML
Type (FT)
Record : FTMIN16/1110
Number
Date Due : Tuesday, 17 May 2016
Title : Min No IM16/13610 - Corrospondence from Mark McKenzie CEO (ACAPMA)
regarding independent review of Manildra
Author : Mark McKenzie
Response : MINISTER (INNOVATION & BETTER REGULATION)
By
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Executive : DATE CRITICAL
Request
Other : Alicia Facal (Other)
Contact
Related : Related to: FTMIN16/1111: Min No IM16/13520 - Correspondence from Dick
Records Honan of Manildra Group regarding the ethanol mandate
Page 38 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
-----Original Message-----
From: Michael Cooper
Sent: Tuesday, 17 May 2016 3:45 PM
To: Sonya Thompson
Subject: FW: HP TRIM Document : DOC16/163377 : letter to John Honan, Managing Director, Manildra
Group re allegations concerning raw grain supplement signed copy.docx
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation P 6129895 m Level 4
The Barrington No 10 Smith Street, Parramatta 2124 PO Box 972 Parramatta NSW 2124
-----Original Message-----
From: Michael Cooper
Sent: Tuesday, 17 May 2016 3:35 PM
To: Valerie Griswold; Rhys Bollen; Matt Press
Subject: HP TRIM Document : DOC16/163377 : letter to John Honan, Managing Director, Manildra Group re
allegations concerning raw grain supplement signed copy.docx
Dear All
I spoke with John Honan from Manildra today. He could not recall what was said back in 2007 and he
suggested that Manildra had come a long way since then. I indicated that FT still needed to speak with
somebody in relation to the matter and Mr Honan suggested that he could speak with us. I have already sent
this letter to Mr John Honan for us to catch up.
Regards
Michael
Sonya
Who will I ring?
Michael Cooper
Director Consumer Protection
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Sorry Michael, MES just called me. The MO would like the response to this asap. Would you have
time to discuss this today?
Sonya
Michael, ACAPMA has written to the Minister with a complaint about Manildras compliance
with the RSB sustainability standard (the letter references a different version of the standard
than the one which is currently prescribed by the Biofuels Regulation 2007). The shadow
minister has also written on the same matter. I have attached both letters for information.
Matt would like to get your view on an appropriate compliance response. We need to carefully
consider the full range of options before responding.
We already have a meeting scheduled for 3.30 pm this Friday. Would you have some time either
side of this meeting to discuss this issue? If you will be in McKell tomorrow or Thursday we
could make a time to meet then. The MO has asked for an urgent response so we need to do
something this week.
Thanks,
Sonya Thompson
Senior Policy Officer, Policy & Legislation
Page 40 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 41 of 321
fyi
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Sorry Michael, MES just called me. The MO would like the response to this asap. Would you have
time to discuss this today?
Sonya
Michael, ACAPMA has written to the Minister with a complaint about Manildras compliance
with the RSB sustainability standard (the letter references a different version of the standard
than the one which is currently prescribed by the Biofuels Regulation 2007). The shadow
minister has also written on the same matter. I have attached both letters for information.
Matt would like to get your view on an appropriate compliance response. We need to carefully
consider the full range of options before responding.
We already have a meeting scheduled for 3.30 pm this Friday. Would you have some time either
side of this meeting to discuss this issue? If you will be in McKell tomorrow or Thursday we
could make a time to meet then. The MO has asked for an urgent response so we need to do
something this week.
Thanks,
Sonya Thompson
Senior Policy Officer, Policy & Legislation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 43 of 321
Thanks MC. They used the word 'investigate' again, both in the letter and the briefing.
Do you think something different, like allegations will be reviewed, will look into allegations, will seek to
clarify......anything other than investigate? Next thing it will be in the press that FT is 'investigating' Manildra.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sue Honeybrook
Operations Manager
Consumer Protection Unit
-----Original Message-----
From: Michael Cooper
Sent: Wednesday, 18 May 2016 4:04 PM
To: Sue Honeybrook
Subject: FW: letters as discussed
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation P 6129895 m Level 4
The Barrington No 10 Smith Street, Parramatta 2124 PO Box 972 Parramatta NSW 2124
-----Original Message-----
From: Sonya Thompson
Sent: Wednesday, 18 May 2016 2:56 PM
To: Michael Cooper
Subject: letters as discussed
Michael, attached is the material we discussed. If you have any issues please let me know.
Thanks
Sonya
Page 44 of 321
-----Original Message-----
From: Michael Cooper
Sent: Thursday, 19 May 2016 8:43 AM
To: Matt Press @finance.nsw.gov.au>; Rhys Bollen @finance.nsw.gov.au>
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: RE: HP TRIM FT Executive Document : FTMIN16/1110 : Min No IM16/13610 - Corrospondence
from Mark McKenzie CEO (ACAPMA) regarding independent review of Manildra
Matt
Just some wordsmithing to say that we are making enquiries to assess the allegations. If we advise Mr
McKenzie that we are investigating Manildra he may release this information to media outlets which may
damage Manildra's reputation. It may be that our assessment will progress to a full investigations
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation P 6129895 m Level 4
The Barrington No 10 Smith Street, Parramatta 2124 PO Box 972 Parramatta NSW 2124
-----Original Message-----
From: Matt Press
Sent: Thursday, 19 May 2016 8:37 AM
To: Rhys Bollen; Michael Cooper
Subject: HP TRIM FT Executive Document : FTMIN16/1110 : Min No IM16/13610 - Corrospondence from
Mark McKenzie CEO (ACAPMA) regarding independent review of Manildra
Jenefer Plummer
From: MES-FT
Sent: Thursday, 19 May 2016 2:57 PM
To: Samantha Oke
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART
submission
Attachments: Corro re IPART submission.pdf
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
-----Original Message-----
From: Public Dominello's Office_Email [mailto:Office@dominello.minister.nsw.gov.au]
Sent: Thursday, 19 May 2016 8:59 AM
To: MES-FT
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Hi MES,
Can we please get ONE response from the Minister addressing their various pieces of corro? The other concerns
were raised in IM16/13520
-----Original Message-----
From: Harnsle Joo
Sent: Wednesday, 18 May 2016 1:28 PM
To: Matt Dawson; Stephanie Matti
Subject: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Hello again,
We've received corro from the Manildra Group re their IPART submission. How would you like to respond?
1
Withheld pending third party review rights
Withheld pending third party review rights
Page 48 of 321
From: RMLPolicySM
To: Warren Mcallister
Cc: Sonya Thompson; Matt Press; RMLPolicySM
Subject: FTMIN16/1202 : Min No IM16/14394 - Corro regarding IPART submission
Date: Thursday, 19 May 2016 4:49:25 PM
Attachments: Min No IM16 14394 - Corro regarding IPART submission.EML
Min No IM16 14394 - Corro regarding IPART submission.tr5
Warren, related to and travelling with FTMIN16/1111 which is with Matt for approval.
Evelyn
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Document : RML
Type (FT)
Record : FTMIN16/1202
Number
Title : Min No IM16/14394 - Corro regarding IPART submission
Author : John Thomas Honan
Notes : Travelling with FTMIN16/1111
Other : Alicia Facal (Other)
Contact
Related : Related to: FTMIN16/1111: Min No IM16/13520 - Correspondence from Dick
Records Honan of Manildra Group regarding the ethanol mandate
Page 49 of 321
From: RMLPolicySM
To: Rhys Bollen
Cc: Alicia Facal; Sonya Thompson; MES - FT MES; Matt Press
Subject: FTMIN16/1110 and FTMIN16/1111 - Biofuels
Date: Friday, 20 May 2016 11:16:13 AM
Attachments: FTMIN16-1110 and 1139_Letter to Catley.docx
FTMIN16-1110_Brief.docx
FTMIN16-1110_Letter.docx
Min No IM1613610 - Corrospondence from Mark McKenzie CEO (ACAPMA) regarding independent review of
Manildra.PDF
TAB A_Catley letter.pdf
TAB B_letter to John Honan.pdf
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Evelyn
Rhys Bollen
A / Executive Director, Policy & Strategy | Better Regulation | Department of Finance, Services &
Innovation |p02 9338 | m |e @finance.nsw.gov.au|Level 9,2-
24 Rawson Place, Sydney NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
single brief and response. The new due date for this one is next Thursday 26 May
2016.
MES can you please relate FTMIN16/1111 and FTMIN16/1202 so they travel
together in Trim, and extend the due date on 16/1111 to 26 May 2016.
Thanks,
Alicia Facal
Ministerial Liaison Officer, Ministerial Services
Corporate Services|Department of Finance, Services and Innovation
p029338 |e @finance.nsw.gov.au|www.finance.nsw.gov.au
Level 9, McKell, 2-24 Rawson Place, Sydney NSW 2000
<image001.jpg>
Page 51 of 321
Ms Yasmin Catley MP
Member for Swansea
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
PO Box 306
SWANSEA NSW 2281
Dear Ms Catley
I refer to your letter of 12 May 2016 which referred to correspondence from Mr Mark McKenzie,
Chief Executive Officer of the Australasian Convenience and Petroleum Marketers Association
(ACAMPA) about the biofuels sustainability standard prescribed by the Biofuels Regulation 2007.
D
The Regulatory Impact Statement for the Biofuels Regulation 2016 will be released shortly and
will discuss the issue of the sustainability standard to be prescribed in the Regulation for the
purposes of complying with section 6 of the Biofuels Act 2007. Under section 6(3) of the Biofuels
R
Act, volume fuel sellers may only count ethanol that complies with the prescribed biofuel
sustainability standard towards the volume of ethanol sold for the purposes of complying with the
Act.
Mr McKenzies letter has been referred to NSW Fair Trading which will make enquiries to assess
AF
investigate his allegations in accordance with standard procedures. I will also be providing his
letter to the members of the Biofuels Expert Panel for their information. Once Mr McKenzies
allegations have been assessedreviewed and investigated I will provide further advice to industry
if this is warranted.
The Roundtable on Sustainable Biofuels (RSB) is responsible for administering compliance with
the sustainability standard. This is an international standard with its own audit and compliance
T
process. I have referred Mr McKenzies letter to the RSB for their review of the matter.
I have advised Mr McKenzie that his comments will be considered as part of the Regulatory
Impact Statement process for the new Regulation.
Yours sincerely
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
request asks a review of whether the ethanol used by volume fuel sellers
regulated under the Biofuels Act 2007 (the Act) complies with the sustainability
standard prescribed by the Biofuels Regulation 2007. Mr McKenzie also referred
his letter wrote to the Shadow Minister, who has referred his letter for advice
(see Tab A).
Analysis The Roundtable on Sustainable Biofuels (RSB) is responsible for administering
compliance with the sustainability standard. Mr Mckenzies letter will be referred
to them for their consideration. standards audit and compliance process is the
appropriate mechanism to determine whether the ethanol supplied by Manildra
meets the standard.
D
The Regulatory Impact Statement for the new Regulation discusses the issue of
prescribing a sustainability standard for the Act. NSW Fair Trading is
investigatingundertaking enquiries into Mr McKenzies allegations. Mr John
Hanan from Manildra has been contacted and will meet with officers from Fair
R
Trading next week. The letter will also be tabled at the next meeting of the
ACAPMAs comments can be considered as part of the re-making of the
Regulation. In the meantime, the matter could be referred to the Biofuels Expert
Panel for comment and advice.
AF
Brief prepared in response to a Ministerial request
Approved
T
Ministers signature: Date:
Key reasons
Reference
FTMIN16/1110 1
Page 53 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Trading is making enquiries to assess conducting an ithe allegationsnvestigation of this
matter in accordance with standard procedures.
The obligation rests with volume fuels sellers Not appropriate for IPART or the Expert
Panel to audit Manildras compliance
Under the Act, the obligation rests on volume fuel sellers, not Manildra, to ensure that
ethanol counted towards meeting the ethanol mandate under the Act complies with the
prescribed sustainability standard. The current prescribed sustainability standard is
Roundtable on Sustainable Biofuels (RSB) Global Principles and Criteria For Sustainable
Biofuels Production Version Zero. Mr McKenzie does not quote from the prescribed
standard, but a later version (Version 2.1). Even if his allegation that Manildra is not meeting
the requirements of Version 2.1 are true, this does not mean they are not meeting the
D
requirements of the version of the standard which is prescribed under the RegulatioIf NSW
Fair Trading determines that there is any merit to Mr McKenzies allegations volume fuel
sellers will be informed.n.
This is an international standard with its own audit and compliance process, which provides
R
the appropriate mechanism to determine whether the ethanol supplied by Manildra meets the
prescribed standard. Only organisations accredited as certifiers by RSB can audit companies
for compliance with the standard. Therefore, neither IPART nor the Panel can decide this.
AF
ACAPMAs comments can will be tabled with the Biofuels Expert Panel be considered
when re-making the Biofuels Regulation
It is proposed that The Regulation is due for automatic repeal on 1 September 2016 under
the Subordinate Legislation Act 1989. What sustainability standard should be prescribed is
one of the issues discussed in the Regulatory Impact Statement being prepared for the new
Regulation.
Context
Background
Section 6(3) of the Biofuels Act 2007 states only ethanol that complies with a biofuel
sustainability standard may be counted towards the volume of ethanol sold for the purposes
of this section.
2
Page 54 of 321
This is an international standard with its own audit and compliance process. Only
organisations accredited as certifiers by RSB can audit companies for compliance with the
standard. Therefore, neither IPART nor the Panel could do this.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Approval
3
Page 55 of 321
Ref: FTMIN16/1110
Mr Mark McKenzie
Chief Executive Officer
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Australasian Convenience and Petroleum Marketers Association
56 Berry Street
NORTH SYDNEY NSW 2060
Dear Mr McKenzie
I refer to your letter of 10 May 2016 regarding the compliance of biofuels supplied in NSW with
the sustainability standard prescribed by the Biofuels Regulation 2007.
D
I have referred your correspondence to NSW Fair Trading which will make enquiries to
assessinvestigate your allegations in accordance with standard procedures. I will also be
providing your correspondence to the members of the Biofuels Expert Panel for their information.
R
Once NSW Fair Trading have completed their investigationenquires of this matter, I will provide a
further response to you.
The Regulatory Impact Statement for the Biofuels Regulation 2016 will be released shortly and
AF
will address the issue of the sustainability standard to be prescribed in the Regulation for the
purposes of complying with section 6 of the Biofuels Act 2007. Under section 6(3) of the Act,
volume fuel sellers may only count ethanol that complies with the prescribed biofuel sustainability
standard towards the volume of ethanol sold for the purposes of complying with the Act.
I have directed that your comments on the sustainability standard be considered as part of the
T
Regulatory Impact Statement process. Once the Regulatory Impact Statement is released your
organisation will have a further opportunity to comment on this issue.
In the meantime, I will refer your letter to the Biofuels Expert Panel for comment and advice.
Yours sincerely
12 May 2016
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
The Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
52 Martin Place
SYDNEY NSW 2000
Dear Minister
Please find enclosed a copy of correspondence received from Mr Mark McKenzie, Chief Executive
Officer of the Australasian Convenience and Petroleum Marketers Association (ACAPMA), seeking an
independent review of Manildra's biofuel production in terms of its sustainability.
As you would be aware, the Biofuels Act 2007 requires the production of sustainable biofuel, defined
as "sustainable fuels" by the International Roundtable on Sustainable Biomaterials (RSB).
ACAPMA have raised concerns on whether the current ethanol production meets RSB requirements
and seeks a review of Manildra's ethanol production process.
It is important that there is ongoing confidence in the biofuel mandate and the sustainability of the
production process is an important part in maintaining consumer support.
Office: Shop 1, 204 Pacific Hwy, Swansea NSW 2281 Mall: PO Box 306, Swansea NSW 2261
Phone: (02) 49721133 Fax: (02) 49721494 Email: Swansea@parliament.nsw.gov.au
Page 57 of 321
t t I IJ .
,_,J ~~ . . i'-, .... ~ -' L
10 May2016
offlce@dominello. minister.nsw.gpv.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Dear Minister,
Need for Independent review of Manildra's RSB Certification of its' biofuels production
As you would be aware, the NSW Biofuels Act (2007) mandates the sale of 'sustainable biofuels'
- with these biofuels defined as those that are certified as 'sustainable fuels' by the
international Roundtable on Sustainable BioMaterials (RSB).
You will also likely be aware that the Manildra Group secured RSB Certification in March 2011
(see 11 11 " I "' " 1r/0t U ' ,1 rtd,u~ll0308'.1'20RSB"20PC~%20Vers1on%202 1 u.t l),
In a recent review of the RSB Certification report and the accompanying audit report that was
submitted by the Manildra Group, we note that the certification is solely based on ethanol fuel
that is produced from waste starch and waste sorghum.
The use of virgin feedstock carries a much higher embodied energy than waste feedstock
casting serious doubt about whether the ethanol product produced by the Manildra Group is
actually compliant with the biofuels Act (refer NSW Biofuels Regulation 3A), by reason of an
estimated 50% being inconsistent with the scope of audit materials provided to the RSB.
Our reading of the RSB Certification also raises significant questions about the scope of the
material submitted to RSB by the Manildra group in support of its application. Specifically:
The audit submitted by Manildra did not include a life cycle analysis of GHG emissions as
would normally be required for such a Certification which raises a question about the
environmental integrity of the assessment
P 1300 160 270 I F +61 2 8078 0629 I 56 Berry St North Sydney NSW 2060 I ABN: 71 506 540 351
www.aca [)ma.corn.au
Page 58 of 321
The assessment looked only at ethanol produced from waste products (i.e. waste water and
waste agricultural feedstock) and, despite acknowledging that virgin feedstock was used in
ethanol manufacture, did not seek to quantify the% contribution of virgin feedstock to the
finished product.
The revelation casts serious doubt on the veracity of past claims made by yourself and other
NSW Government Ministers about the environmental benefits that flow from increased market
uptake of ethanol in NSW, particularly given that Manildra is the sole supplier of this product in
NSW.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
In light of these latest findings, we request an urgent review of Manildra's ethanol production
process to determine whether the entire supply actually meets the RSB Sustainability Criteria -
or whether, as we suspect, that 50% of the ethanol currently being sold into the market does
not actually comply with the current Biofuels Act (2007).
We firmly believe that such a review must be undertaken by an independent auditor and
overseen by the NSW Biofue/s Expert Working Group.
We are extremely concerned at this latest finding which, in light of revelations last week about
inflated employment figures used to justify continued government investment in biofuels, casts
further doubt on the true nature of the business case for a t ightening of NSW biofuels laws
Given the imminent changes to the NSW Biofuels Amendment Bill (2016) - changes that pose a
significant risk of high fuel prices for NSW motorists and potential destruction of small
businesses in NSW, we seek your urgent consideration and advice in respect of the above
request.
Yours sincerely,
//,-{~/ - \.:
Mark MdCenl 1e
Chief Executive Officer
Pl 1300160 270
MI 0447 444 011
El markm@acaprna.com.au
Page 59 of 321
Ref: IM16/13920
Ms Yasmin Catley MP
Member for Swansea
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
PO Box 306
Swansea NSW 2281
Dear Ms Catley,
Thank you for your representations to the Hon Victor Dominello MP, Minister for Innovation and
Better Regulation , on behalf of Mr Mark McKenzie, Chief Executive Officer of the Australasian
Convenience and Petroleum Marketers Association , regarding the Biofuels Act 2007.
Yours sincerely
Eloise Griffin
Correspondence Officer
13 May 2016
~-ti
PO Box 972
--
Parramatta NSW 2124
NSW
GOVERNMENT Trading
ABN 81 913 830 179
www.fairtrading.nsw.gov.au
Ref: TRIM16/26600
Mr John Honan
Managing Director, Manildra Group
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
6 Frank Street,
Gladesville, NSW, 2111
Dear Mr Honan
Further to our telephone discussion on Tuesday 17 May 2016, NSW Fair Trading has
received a complaint that in 2007 Manildra representatives made a submission before a
Victorian Parliamentary Committee into 'Mandatory Ethanol and Biofuels Targets in Victoria'
and during the submission, Manildra admitted that it supplements its production of ethanol
from waste wheat starch with other types of raw grain. It would appear that complainant is
making reference to comments made at the bottom of page 5 of the transcript. I have
attached a copy of the transcript for your information.
The complainant is suggesting that the use of raw feedstock puts the Manildra Group in
breach of the Biofuels Act, in that the ethanol produced by the Manildra Group, may be
inconsistent with the scope of the audit materials provided to the Roundtable on Sustainable
Biomaterials. I have included the relevant definitions from the Biofuels Act 2007 and Biofuels
Regulations for your information.
It has also been suggested that Manildra did not include a life cycle analysis of GHG
emissions as would normally be required for such a certification, thus raising doubts as to the
environmental integrity of the assessment.
To assist Fair Trading in clarifying these issues I would like to make an appoint to meet with
you or one of your representatives who can speak on behalf of the company and explain the
currently ethanol production techniques.
Yours sincerely
~:\.~
Michael Cooper
Director, Consumer Protection
17 May 2016
E10 means petrol-ethanol blend that contains between 9% and 10% ethanol by volume,
Page 61 of 321
being ethanol that complies with a biofuel sustainability standard.
Biofuels Regulation
For the purposes of the definition of biofuel sustainability standard in section 3 (1) of the
Act, the document entitled Global Principles and Criteria For Sustainable Biofuels
Production-Version Zero, published by the Roundtable on Sustainable Biofuels on 13
August 2008, is prescribed as a standard in respect of the sustainable manufacture of ethanol
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
or biodiesel.
Page 62 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
------< HP TRIM Record Information >------
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 64 of 321
Dear all
Just spoke with john Honan GM from Manildra. I will be meeting him on Tuesday at 11am at their offices to
discuss the current allegation
Michael Cooper
Director Consumer Protection | Compliance & Enforcement
Level 4 | 10 Smith Street, Parramatta
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
NSW Fair trading
Jenefer Plummer
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
From: Matt Press
Sent: Tuesday, 24 May 2016 11:22 AM
To: MES-FT <MES-FT@finance.nsw.gov.au>
Cc: Rhys Bollen < @finance.nsw.gov.au>
Subject: FW: Apparent non-compliance of Manildra Group's ethanol production with Regulation 3A of the NSW
Biofuels Regulation (2007)
Importance: High
Dear Matt,
I refer to my correspondence of below drawing the Ministers attention to an apparent breach of Regulation 3A of the
NSW Biofuels Act (2007) by the States monopoly biofuels producer the Manildra Group.
I have not yet had a response to this correspondence, despite two weeks having now elapsed.
You should be aware that we understand that the effect of this regulation (which relates to a requirement for the fuel
to be biosustainable) has effectively created a barrier to new market entrants.
It therefore follows that the apparent failure to enforce the full provisions of this regulation appears to constitute a
distortion of supply competition to the sole benefit of the incumbent.
Could you please advise the progress of your investigation into the matters raised in this letter at your earliest
convenience.
1
Page 66 of 321
Regards,
Mark McKenzie
Chief Executive Officer
Australasian Convenience and Petroleum Marketers Association
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M 0447 444 011 | E markm@acapma.com.au | W www.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Tuesday, 10 May 2016 7:11 PM
To: office@dominello.minister.nsw.gov.au
Cc: Matt Dawson < @minister.nsw.gov.au>; Matt Crocker ( @premier.nsw.gov.au)
< @premier.nsw.gov.au>
Subject: Apparent non-compliance of Manildra Group's ethanol production with Regulation 3A of the NSW Biofuels
Regulation (2007)
Dear Minister,
Yours sincerely,
Mark McKenzie
Chief Executive Officer
Australasian Convenience and Petroleum Marketers Association
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M 0447 444 011 | E markm@acapma.com.au | W www.acapma.com.au
2
Page 67 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
In 2011 Manildra was first certified RSB and was the first company in the world to do the
audit 4 certifiers 100% waste product used in the process to this day, ie., NO feed
stock used.
Refused - Public interest against disclosure
The waste water coming out of the process is now used on farms.
Manildra: What we do starts at a farm and ends at a farm, referring to the used of
waste water, and protein waste as quality feed
Refused - Public interest against disclosure
The Carbohydrate is taken out to make Ethanol (refer to supplied flow chart). Protein
waste then goes on to feed for cattle high protein is what you feed cattle, not the
carbohydrate
Permission given to contact auditors directly, Refused - public interest against
disclosure . Is the only
accredited RSB auditor in Australia. Other auditor in ?interest against
Refused - public
?. (in your printout
or to be supplied by John) disclosure
As a side issue, it may be interesting for MJ and her team to note that E15 is sold in many States
in the US, and in fact Ethanol is in most of the US fuels and accounts for 10% of the fuel sold.
Regards, Sue
Sue Honeybrook
Operations Manager
Consumer Protection Unit
NSW Fair Trading - Department of Finance, Services and Innovation
Level 4, The Barrington,10 Smith Street, Parramatta NSW 2150
p: 9895 m:
e: @finance.nsw.gov.au
Page 68 of 321
This email is subject to copyright. No part of it should be reproduced, published, communicated or adapted
without the copyright owner's written consent. No employee or agent is authorised to conclude any binding
agreement on behalf of NSW Fair Trading by email without express written confirmation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 69 of 321
From: RMLPolicySM
To: Alicia Facal; RMLPolicySM
Cc: Matt Press; Sonya Thompson; MES-FT
Subject: RE: URGENT: FTMIN16/1110 and FTMIN16/1111 - Biofuels
Date: Thursday, 26 May 2016 10:19:59 AM
Hi Alicia
I checked with Rhys at the time. He confirmed that the approval was for both. Sonya and Matt
are looking at the rest of your request.
Evelyn
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi Evelyn
Can you please advise if Rhys approval below was for FTMIN16/1110 (ACAPMA matter) or
16/1111 (Manildra matter)? I progressed brief 16/1110 on the assumption the approval only
related to the ACAPMA item, as the other matter had been given an extension until today to
allow the response to be combined with new reps by Manildra received on 11 May (registered
as ftmin16/1202).
Thanks
Alicia
Thanks. Approved.
Evelyn
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Friday, 20 May 2016 9:05 AM
To: Matt Press < @finance.nsw.gov.au>
Cc: Alicia Facal @finance.nsw.gov.au>; RMLPolicySM
<rmlpolicy@finance.nsw.gov.au>; Sonya Thompson < @finance.nsw.gov.au>;
MES-FT <MES-FT@finance.nsw.gov.au>
Subject: Re: FTMIN16/1110 and FTMIN16/1111 - Biofuels
Rhys Bollen
A / Executive Director, Policy & Strategy | Better Regulation | Department of Finance, Services &
Innovation |p02 9338 | m |e @finance.nsw.gov.au|Level 9,2-
24 Rawson Place, Sydney NSW 2000
MES can you please relate FTMIN16/1111 and FTMIN16/1202 so they travel
together in Trim, and extend the due date on 16/1111 to 26 May 2016.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Thanks,
Alicia Facal
Ministerial Liaison Officer, Ministerial Services
Corporate Services|Department of Finance, Services and Innovation
p029338 |e l@finance.nsw.gov.au|www.finance.nsw.gov.au
Level 9, McKell, 2-24 Rawson Place, Sydney NSW 2000
<image001.jpg>
Page 72 of 321
Response to Manildra
Issue Mr John Honan, Chairman of the Manildra Group, has written to the Minister to
advise concerns with the fuel industrys low compliance with the ethanol
mandate under the Biofuels Act 2007 (the Act).
Analysis The NSW Government is implementing a package of reforms that seek to
improve the operation of the biofuels mandate. These first of these reforms will
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
commence by the middle of 2016.
Approved
D
Compliance with the ethanol mandate has declined, but will be addressed by reforms
AF
Compliance with the ethanol mandate has been declining in recent years. Recent changes to
the Act passed by Parliament were largely focused on improving compliance with the
biofuels mandates established under the Act. Work is underway to prepared the Biofuels
Regulation 2016 which will provide the administrative and regulatory detail for the
amendments to the Act. The reforms will commence once the Regulation is complete.
The reform package announced on 20 December 2016 included:
T
new powers for IPART to determine a fair wholesale price for fuel ethanol and review
the retail price of E10
extending the requirement to comply with the biofuels mandates to service stations
which well three or more types of fuel and a requirement for these service stations to
offer E10
an enhanced exemptions regime for service stations with the lowest volume of sales
of petrol and diesel
introducing more objective measures to the reasonable steps test for businesses
seeking an exemption
a community education advertising campaign to improve understanding and
awareness of ethanol
an online fuel price board to publish fuel prices at all NSW service stations in real
time.
The Regulatory Impact Statement process for the new Regulation will commence shortly with
the release of the Statement and the draft Regulation. Submissions on the draft Regulation
will close on 30 June. The new Regulation and the reforms to the Act will commence in
August 2016.
Reference
FTMIN16/1111 1
Response to Manildra Page 73 of 321
Context
Background
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
of reference have been finalised. Consequently, Mr Honans late submission cannot be
considered. Mr Everett will be writing to Mr Honan directly to advise him of this.
Approval
2
Page 74 of 321
Ref: FTMIN16/1111
Mr John Honan
Chairman
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Manildra Group
PO Box 72
GLADESVILLE NSW 1675
Dear Mr Honan
I refer to your letter of 9 May 2016 regarding the enforcement of the ethanol mandate under the
Biofuels Act 2007. I assure you that the NSW Government continues to support the mandate. We
are working with the fuel industry and other stakeholders to implement the important package of
D
biofuels reforms I announced in December 2015. These reforms will support the operation of the
biofuels mandates and improve compliance with the Biofuels Act.
As you will be aware, Parliament passed amendments to the Biofuels Act in March 2016. These
R
changes received assent on 6 April 2016. NSW Fair Trading is currently preparing a Regulatory
Impact Statement to accompany a draft Biofuels Regulation. The Regulatory Impact Statement
and Regulation will be released for public consultation shortly and will be published on the NSW
Fair Trading website. The new Regulation will commence in August 2016 and at that time I will be
AF
able to commence the remaining amendments to the Biofuels Act.
In March, Parliament also passed amendments to the Fair Trading Act 1987. These amendments
allowed me to establish an online fuel price board in NSW. I announced this reform in December
2015. NSW Fair Trading is working to develop the online price board, which I expected to be
operation by the end of July. The price board will publish up to date prices for fuels at all NSW
T
service stations.
I look forward to your continued support as the NSW Government progresses these important
reforms.
Yours sincerely
Hello Michael. In line with our meeting this week, and the proposed site inspection to clarify the
issues raised in the Ministerial, you had shown me two documents for Charlene and I to review
and incorporate into our visit.
Do you have those documents, (one you said was more plain English and one was more
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
technical)? If you can forward to me or point me in the direction of them, I can capture in Trim
and meet with Charlene to discuss, prior to next Friday.
Sue Honeybrook
Operations Manager
Consumer Protection Unit
NSW Fair Trading - Department of Finance, Services and Innovation
Level 4, The Barrington,10 Smith Street, Parramatta NSW 2150
p: 9895 m:
e: @finance.nsw.gov.au
This email is subject to copyright. No part of it should be reproduced, published, communicated or adapted
without the copyright owner's written consent. No employee or agent is authorised to conclude any binding
agreement on behalf of NSW Fair Trading by email without express written confirmation
Page 76 of 321
Sue
Manildra's RSB certification
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Record Number : DOC16/162113
Title : RSB_RPT_RecertReport_Manildra-ShoalhavenStarches_SummaryReport_022916
Pages 77-88: Refused - information already available to applicant
Page 89 of 321
FYI
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Rod
FYI
From: Michael Cooper
Sent: Tuesday, 24 May 2016 1:00 PM
To: Valerie Griswold < @finance.nsw.gov.au>
Subject: meeting with John Honan from Manildra
Importance: High
Val
Met with Mr Honan today.
meet with John Honan, John (Environmental) and Debbie Forster Ethanol Production
Manager in relation to correspondence from Mark McKenzie. Gave Mr Honan a redacted
version of the letter. See TRIM for copy of redacted letter. Spoke specifically in relation
to the allegation that the audit that was undertaken to get the RSB certification did not
include a life cycle analysis of the Green House Gases (GHG) emissions. Refused -
Public interest
against
disclosure
In relation to comments made at the Victorian Parliament hearing he said from memory is
was a hearing not so much into biofuel but the use of feedstock to make biofuel. Refused -
Public
interest
against
disclosure
In reviewing the time line for events, the Biofuels Act started in 2007, in 2009 clause 3A
was inserted into the Regulation requiring compliance with a certificate issued by RSB. In
2011 the RSB Global Certificate scheme was introduced. Manildra was issued with a
certificate of compliance.
Page 90 of 321
Of interest, in the certificate that is available online, there were a number of non-
compliances recorded against Manildra by the Auditor. Refused - Public interest against disclosure
Michael Cooper
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Page 91 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
' ;. Page 92 of 321
ACAPMA t \ ~ f '; \
' JJI~ ._~._ ".1 ;, _ . : .J. I
10 May 2016
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
office@dominello.minister.nsw.gov.au
Dear Minister,
Need for independent review of Manildra's RSB Certification of its' biofuels production
As you would be aware, the NSW Biofuels Act (2007) mandates the sale of 'sustainable biofuels'
- with these biofuels defined as those that are certified as 'sustainable fuels' by the
international Roundtable on Sustainable BioMaterials (RSB) .
You will also likely be aware that the Manildra Group secured RSB Certification in March 2011
(See hltp ://rsb.oq1/pdf5btandJrds/l_l 03 -08'.,20RSB',,20PCs~.20VH51on%202 l pdf ).
In a recent review of the RSB Certification report and the accompanying audit report that was
submitted by the Manildra Group, we note that the certification is solely based on ethanol fuel
that is produced from waste starch and waste sorghum.
The use of virgin feedstock carries a much higher embodied energy than waste feedstock
casting serious doubt about whether the ethanol product produced by the Manildra Group is
actually compliant with the biofuels Act (refer NSW Biofuels Regulation 3A), by reason of an
estimated 50% being inconsistent with the scope of audit materials provided to the RSB.
Our reading of the RSB Certification also raises significant questions about the scope of the
material submitted to RSB by the Manildra group in support of its application . Specifically :
The audit submitted by Manildra did not include a life cycle analysis of GHG emissions as
would normally be required for such a Certification which raises a question about the
environmental integrity of the assessment
P 1300 160 270 I F +61 2 8078 0629 I 56 Berry St North Sydney NSW 2060 I ABN: 71 506 540 351
www .acapma .com .au
Page 93 of 321
The assessment looked only at ethanol produced from waste products (i.e. waste water and
waste agricultural feedstock) and, despite acknowledging that virgin feedstock was used in
ethanol manufacture, did not seek to quantify the% contribution of virgin feedstock to the
finished product.
The revelation casts serious doubt on the veracity of past claims made by yourself and other
NSW Government Ministers about the environmental benefits that flow from increased market
uptake of ethanol in NSW, particularly given that Manildra is the sole supplier of this product in
NSW.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
In light of these latest findings, we request an urgent review of Manildra's ethanol production
process to determine whether the entire supply actually meets the RSB Sustainability Criteria -
or whether, as we suspect, that 50% of the ethanol currently being sold into the market does .
not actually comply with the current Biofuels Act (2007).
We firmly believe that such a review must be undertaken by an independent auditor and
overseen by the NSW Biofue/s Expert Working Group.
We are extremely concerned at this latest finding which, in light of revelations last week about
inflated employment figures used to justify continued government investment in biofuels, casts
further doubt on the true nature of the business case for a tightening of NSW biofuels laws
Given the imminent changes to the NSW Biofuels Amendment Bill (2016) - changes that pose a
significant risk of high fuel prices for NSW motorists and potential destruction of small
businesses in NSW, we seek your urgent consideration and advice in respect of the above
request.
Yours sincerely,
Mark M 1e
Chief Executive Officer
PI Boo 160 no
MI 0447 444 011
El markm@acapma.com.au
2
Page 94 of 321
It's approved.
-----Original Message-----
From: Alicia Facal
Sent: Monday, 30 May 2016 9:49 AM
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: RMLPolicySM <rmlpolicy@finance.nsw.gov.au>
Cc: Matt Press < @finance.nsw.gov.au>; Andrew Sarlas < @finance.nsw.gov.au>
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Importance: High
Good morning
Can you please advise if this matter has been approved or if it can be progressed? Happy to discuss if there are
problems, but please note new contact number - 9372 .
Many thanks
Alicia
-----Original Message-----
From: Sonya Thompson
Sent: Thursday, 26 May 2016 4:16 PM
To: Alicia Facal
Cc: Matt Press
Subject: RE: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Alicia, I have drafted a response to Gareth Ward which has been sent to Matt for approval (ref FTMIN16/1202).
You have the response already for FTMIN16/1111. There are no issues which the Minister needs to respond on
raised in John Honan's letter (ref FTMIN16/1202). If there was anything, we might add that "the Minister notes
that Manildra is consulting directly with IPART regarding its submission".
-----Original Message-----
From: Sonya Thompson
Sent: Thursday, 26 May 2016 10:57 AM
To: Alicia Facal
Cc: Sharne Peake; Matt Press
Subject: RE: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Alicia, Rhys has approved the responses to FTMIN16/1111 and 1110 and they can go forward. The letter from
John Honan to the Minister does not require a response.
I proposed that I draft a response to the letter from Gareth Ward and that can proceed separately, whether under
1202 or a different number.
Sonya
-----Original Message-----
From: Sharne Peake
Page 95 of 321
Hi Sonya
We're waiting on it to be registered in the MO and then we will register it here, but in the interim just run with
the existing TRIM numbers so we can get it moving.
Alicia is back now and I've mentioned you're working on this as it needs to be with the MO today.
Thanks
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
-----Original Message-----
From: Sonya Thompson
Sent: Thursday, 26 May 2016 10:42 AM
To: Sharne Peake
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
-----Original Message-----
From: Elizabeth Verteouris
Sent: Thursday, 26 May 2016 9:21 AM
To: Warren Mcallister
Cc: RMLPolicySM
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Hi Warren
Regards
Liz
-----Original Message-----
From: Stephanie Matti [mailto: @minister.nsw.gov.au]
Sent: Thursday, 26 May 2016 9:16 AM
To: Elizabeth Verteouris
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
As discussed, could we please have a cover letter from the Minister to Gareth Ward regarding this corro.
Thank you =]
-----Original Message-----
From: Harnsle Joo
Sent: Wednesday, 18 May 2016 1:28 PM
To: Matt Dawson; Stephanie Matti
Page 96 of 321
Hello again,
We've received corro from the Manildra Group re their IPART submission. How would you like to respond?
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 97 of 321
From: RMLPolicySM
To: Alicia Facal; RMLPolicySM
Cc: Matt Press; Andrew Sarlas
Subject: RE: HP Records Manager Minister"s Inwards : IM16/14394 : Corro re IPART submission
Date: Wednesday, 1 June 2016 10:53:35 AM
Hi Alicia
Tracy Harris
Executive Assistant to Executive Director, Policy & Strategy
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
NSW Fair Trading
Department of Finance, Services and Innovation
McKell Building, Level 9, 2-24 Rawson Place, SYDNEY NSW 2000
E: @finance.nsw.gov.au | T: 02 9619 | M:
-----Original Message-----
From: Alicia Facal
Sent: Monday, 30 May 2016 9:49 AM
To: RMLPolicySM
Cc: Matt Press; Andrew Sarlas
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Importance: High
Good morning
Can you please advise if this matter has been approved or if it can be progressed? Happy to discuss if there are
problems, but please note new contact number - 9372
Many thanks
Alicia
-----Original Message-----
From: Sonya Thompson
Sent: Thursday, 26 May 2016 4:16 PM
To: Alicia Facal
Cc: Matt Press
Subject: RE: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Alicia, I have drafted a response to Gareth Ward which has been sent to Matt for approval (ref FTMIN16/1202).
You have the response already for FTMIN16/1111. There are no issues which the Minister needs to respond on
raised in John Honan's letter (ref FTMIN16/1202). If there was anything, we might add that "the Minister notes
that Manildra is consulting directly with IPART regarding its submission".
-----Original Message-----
From: Sonya Thompson
Sent: Thursday, 26 May 2016 10:57 AM
To: Alicia Facal
Cc: Sharne Peake; Matt Press
Page 98 of 321
Subject: RE: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Alicia, Rhys has approved the responses to FTMIN16/1111 and 1110 and they can go forward. The letter from
John Honan to the Minister does not require a response.
I proposed that I draft a response to the letter from Gareth Ward and that can proceed separately, whether under
1202 or a different number.
Sonya
-----Original Message-----
From: Sharne Peake
Sent: Thursday, 26 May 2016 10:51 AM
To: Sonya Thompson
Cc: Alicia Facal
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: RE: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Hi Sonya
We're waiting on it to be registered in the MO and then we will register it here, but in the interim just run with
the existing TRIM numbers so we can get it moving.
Alicia is back now and I've mentioned you're working on this as it needs to be with the MO today.
Thanks
-----Original Message-----
From: Sonya Thompson
Sent: Thursday, 26 May 2016 10:42 AM
To: Sharne Peake
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
-----Original Message-----
From: Elizabeth Verteouris
Sent: Thursday, 26 May 2016 9:21 AM
To: Warren Mcallister
Cc: RMLPolicySM
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Hi Warren
Regards
Liz
-----Original Message-----
From: Stephanie Matti [mailto: @minister.nsw.gov.au]
Sent: Thursday, 26 May 2016 9:16 AM
To: Elizabeth Verteouris
Page 99 of 321
Subject: FW: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
As discussed, could we please have a cover letter from the Minister to Gareth Ward regarding this corro.
Thank you =]
-----Original Message-----
From: Harnsle Joo
Sent: Wednesday, 18 May 2016 1:28 PM
To: Matt Dawson; Stephanie Matti
Subject: HP Records Manager Minister's Inwards : IM16/14394 : Corro re IPART submission
Hello again,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
We've received corro from the Manildra Group re their IPART submission. How would you like to respond?
CONFIDENTIAL
Fyi
Rhys Bollen
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
A / Executive Director, Policy | Better Regulation Division | Department of Finance, Services and
Innovation | p 02 9338 |m |e @finance.nsw.gov.au | 2 Rawson
Place, Sydney NSW 2000
Hi Mark
Didnt the Queensland Government just introduce a retail site compliance regime?
Wasnt the main gripe of the industry that for the mandate to work it needs to be
targeted towards the businesses selling E10 not the businesses supplying it?
On the RIS and the economic impact of the mandate, isnt this the whole purpose of the
information gathering exercise we are currently undertaking, which was the substance
of the agreement we reached on 18 February?
The Minister committed to deferring a determination regarding who is in and who is out
of the new regime until we have all the data to make an informed decision. That is
exactly what we are doing.
I have read your opinion piece and note ACAPMAs concerns about the impact of the
mandate on smaller operators. It is a concern shared by the Minister and the NSW
Government.
The consultation and information gathering process as well as the protections in the
exemptions regime are intended to address this issue.
I would respectfully submit that the issue here is not the consultation process being run
by Fair Trading, but rather ACAPMAs long-held opposition to the NSW biofuels
mandate.
Kind regards
Page 101 of 321
Matt
Dear Matt,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
The industry is all riled up having now had a chance to view the so called RIS.
The email sent by Matt Press on 26 May 2016 about the operation of the Online Price Board is
also a point of heated response from our members, in that demonstrates a complete lack of
understanding of the process required for the posting of fuel prices (a point that has been
repeatedly voiced by stakeholders and repeatedly ignored by both the Minister and NSW Fair
Trading).
We believe that the lack of detail in the RIS amounts to a snow-job that is totally devoid of the
detail needed to accurately determine the genuine economic impact on fuel retail businesses in
NSW.
In particular, the failure to include a threshold for liability even one that is stepped suggests
that the document that has been circulated is grossly deficient in satisfying the basic
requirements for a Regulatory Impact Statement (RIS).
In short, the quality of the RIS is an insult to the many businesses that comprise the retail fuel
industry and demonstrates the complete indifference of the NSW Government to the downside
risks of the new Biofuels Regulation.
The lack of detail also provides visible demonstration that there is actually no economic or social
case for the proposed changes.
Accordingly, we are in the process of preparing a public campaign against the regulation the
precursor of which was sounded in an opinion piece that was published on www.smh.com.au
yesterday.
ACAPMA is therefore preparing to commit all available resources to lobbying against this
initiative for as long as it takes to get the government to make a genuine effort to progress laws
that take due account of the substantial risk to the retail fuel industry in NSW.
We would not normally provide forward advice of such action, but in light of commitments
made in the meeting with the Minister on 18 February 2016 we felt that advance advice of our
belief that these commitments have not been honoured by the Minister should be provided as a
necessary courtesy.
It is very disappointing that this legislative initiative has degenerated into such high farce.
Regards,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | Wwww.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
@minister.nsw.gov.au>; @finance.nsw.gov.au
Subject: RE: Apparent non-compliance of Manildra Group's ethanol production with Regulation
3A of the NSW Biofuels Regulation (2007)
Hi Mark
The Minister signed a letter yesterday. It should be on its way to you. Steph can you
please send Mark a soft copy?
Michael Cooper (ccd) from the compliance and enforcement team is investigating the
issue.
Regards
Matt
Hi Matt,
Could you please advise the status of your investigation of our inquiry.
Thanks,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | Wwww.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Matt Dawson
Cc: Matthew Crocker
Subject: Re: Apparent non-compliance of Manildra Group's ethanol production with Regulation 3A of
the NSW Biofuels Regulation (2007)
Thanks Matt,
Can I confirm that the intent will still be for an accompanying RIS and maintenance of 4 weeks
for consultation?
Thanks,
Mark McKenzie
CEO
Australasian Convenience & Petroleum Marketers Association
Level 12, 56 Berry Street, North Sydney, NSW 2060
M| 0447 444 011
Hi Mark
Thanks for your email. As youd appreciate, we keep the good burgers
down at Fair Trading rather busy with a long list of reform projects and
sometimes things in government are delayed.
Its not being held up in our office. I understand Matt Press is going to send
it out by the end of the week.
Regards
Matt
From: Mark McKenzie [mailto:markm@acapma.com.au]
Sent: Thursday, 26 May 2016 10:20 AM
To: Matt Dawson
Cc: Matthew Crocker
Subject: Re: Apparent non-compliance of Manildra Group's ethanol production with
Regulation 3A of the NSW Biofuels Regulation (2007)
Thanks Matt.
Page 104 of 321
Also curious on where you are up to wig the draft Biofuels Regulation - it was
expected last week as per consistent advice provided by Fair Trading (I copied you
in on the email).
Given the fact that there has been no response my guess is that this had to be
referred to your office.
In an attempt to cut out the middle man, can you please advise when we can now
expect the draft Regulation ?
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Thanks,
Mark McKenzie
CEO
Australasian Convenience & Petroleum Marketers Association
Level 12, 56 Berry Street, North Sydney, NSW 2060
M| 0447 444 011
Hi Mark
A response is in train. Ill check with Fair Trading to see where
its up to.
Regards
Matt
From: Mark McKenzie [mailto:markm@acapma.com.au]
Sent: Tuesday, 24 May 2016 10:14 AM
To: Matt Dawson
Cc: Matthew Crocker
Subject: RE: Apparent non-compliance of Manildra Group's ethanol
production with Regulation 3A of the NSW Biofuels Regulation (2007)
Dear Matt,
I refer to my correspondence of below drawing the Ministers
attention to an apparent breach of Regulation 3A of the NSW
Biofuels Act (2007) by the States monopoly biofuels producer the
Manildra Group.
I have not yet had a response to this correspondence, despite two
weeks having now elapsed.
You should be aware that we understand that the effect of this
regulation (which relates to a requirement for the fuel to be
biosustainable) has effectively created a barrier to new market
entrants.
Page 105 of 321
Could you please advise the progress of your investigation into the
matters raised in this letter at your earliest convenience.
Regards,
Mark McKenzie
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Australasian Convenience and Petroleum Marketers Association
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au |
Wwww.acapma.com.au
<image001.png>
Dear Minister,
Yours sincerely,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au |
Wwww.acapma.com.au
<image001.png>
Michael Cooper
Director Consumer Protection | Compliance & Enforcement
NSW Fair Trading | Department of Finance, Services & Innovation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
P 6129895
Thanks
It is on the agenda for Tuesdays panel meeting. I think Sue might be representing
C&E at the meeting.
Rhys Bollen
A / Executive Director, Policy | Better Regulation Division | Department of Finance,
Services and Innovation | p 02 9338 |m |e
@finance.nsw.gov.au | 2 Rawson Place, Sydney NSW 2000
From: Michael Cooper
Sent: Friday, 3 June 2016 11:08 AM
To: Rhys Bollen < @finance.nsw.gov.au>; Valerie Griswold
@finance.nsw.gov.au>
Subject: FW: Apparent non-compliance of Manildra Group's ethanol production
with Regulation 3A of the NSW Biofuels Regulation (2007)
Rhys
Please note the Ministers comments to Mark McKenzie in that he is going to refer
his complaint to the expert panel.
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Stephanie Matti [mailto @minister.nsw.gov.au]
Sent: Friday, 3 June 2016 10:52 AM
To: Matt Dawson; Mark McKenzie
Cc: Matthew Crocker; Matt Press; Michael Cooper
Subject: RE: Apparent non-compliance of Manildra Group's ethanol production with Regulation
3A of the NSW Biofuels Regulation (2007)
Good morning all,
The response from the Minister is attached.
A copy of the response was also forwarded to Ms Yasmin Catley MP (attached).
Page 107 of 321
Regards,
Steph
From: Matt Dawson
Sent: Friday, 3 June 2016 9:53 AM
To: Mark McKenzie
Cc: Matthew Crocker; Matt Press; Stephanie Matti; @finance.nsw.gov.au
Subject: RE: Apparent non-compliance of Manildra Group's ethanol production with Regulation
3A of the NSW Biofuels Regulation (2007)
Hi Mark
The Minister signed a letter yesterday. It should be on its way to you. Steph can you
please send Mark a soft copy?
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Michael Cooper (ccd) from the compliance and enforcement team is investigating
the issue.
Regards
Matt
From: Mark McKenzie [mailto:markm@acapma.com.au]
Sent: Friday, 3 June 2016 9:50 AM
To: Matt Dawson
Cc: Matthew Crocker; Matt Press
Subject: RE: Apparent non-compliance of Manildra Group's ethanol production with Regulation
3A of the NSW Biofuels Regulation (2007)
Hi Matt,
We have still not received any response on this issue.
Could you please advise the status of your investigation of our inquiry.
Thanks,
Mark McKenzie
Chief Executive Officer
Australasian Convenience and Petroleum Marketers Association
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M 0447 444 011 | E markm@acapma.com.au | W www.acapma.com.au
Mark McKenzie
CEO
Australasian Convenience & Petroleum Marketers Association
Level 12, 56 Berry Street, North Sydney, NSW 2060
M| 0447 444 011
Hi Mark
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Thanks for your email. As youd appreciate, we keep the good burgers
down at Fair Trading rather busy with a long list of reform projects
and sometimes things in government are delayed.
Its not being held up in our office. I understand Matt Press is going to
send it out by the end of the week.
Regards
Matt
From: Mark McKenzie [mailto:markm@acapma.com.au]
Sent: Thursday, 26 May 2016 10:20 AM
To: Matt Dawson
Cc: Matthew Crocker
Subject: Re: Apparent non-compliance of Manildra Group's ethanol production
with Regulation 3A of the NSW Biofuels Regulation (2007)
Thanks Matt.
Also curious on where you are up to wig the draft Biofuels Regulation
- it was expected last week as per consistent advice provided by Fair
Trading (I copied you in on the email).
Given the fact that there has been no response my guess is that this
had to be referred to your office.
In an attempt to cut out the middle man, can you please advise when
we can now expect the draft Regulation ?
Thanks,
Mark McKenzie
CEO
Australasian Convenience & Petroleum Marketers Association
Level 12, 56 Berry Street, North Sydney, NSW 2060
M| 0447 444 011
Hi Mark
A response is in train. Ill check with Fair Trading to see
where its up to.
Regards
Matt
From: Mark McKenzie [mailto:markm@acapma.com.au]
Page 109 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
despite two weeks having now elapsed.
You should be aware that we understand that the effect
of this regulation (which relates to a requirement for the
fuel to be biosustainable) has effectively created a
barrier to new market entrants.
It therefore follows that the apparent failure to enforce
the full provisions of this regulation appears to
constitute a distortion of supply competition to the sole
benefit of the incumbent.
Could you please advise the progress of your
investigation into the matters raised in this letter at your
earliest convenience.
Regards,
Mark McKenzie
Chief Executive Officer
Australasian Convenience and Petroleum Marketers Association
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M 0447 444 011 | E markm@acapma.com.au | W
www.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 111 of 321
~11
-- Minister for Innovation and Better Regulation
NSW
GOVERNMENT
The Hon Victor Dominello MP
Ref: FTMIN16/1110
Mr Mark McKenzie
Chief Executive Officer
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Australasian Convenience and Petroleum Marketers Association
56 Berry Street
NORTH SYDNEY NSW 2060
I have referred your correspondence to NSW Fair Trading which will inquire into and assess your
inquiry in accordance with standard procedures. I will provide your correspondence to the
members of the Biofuels Expert Panel for their information.
When Fair Trading completes its inquiry I will provide a further response to you.
If you would like to discuss this matter further, please contact Mr Michael Cooper at NSW Fair
Trading on 9895 0861.
3\ ,s \l
ilk
-- Minister for Innovation and Better Regulation
NSW
GOVERNMENT
The Hon Victor Dominello MP
Ms Yasmin Gatley MP
Member for Swansea
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
PO Box 306
SWANSEA NSW 2281
I have referred Mr McKenzie's letter to NSW Fair Trading, which will commence inquiries to
assess the concerns raised by Mr McKenzie in accordance with standard procedures. I will also
provide his letter to the members ofthe Biofuels Expert Panel for their information. Once Mr
McKenzie's claims have been reviewed I will advise industry if this is warranted.
Encl.
okay. Understand. Does Matt Press and Sonya have that information to speak to on
tuesday?
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
On 3 Jun 2016, at 4:03 pm, "Michael Cooper" @finance.nsw.gov.au>
wrote:
I have two other meetings to go to. I think if you use the RML has your
briefing note that should be ok. Also I thought we should provide some of the
rsb audits from the internet as these make it quite clear why the ghg analysis
is not required
Michael Cooper
Director Consumer Protection | Compliance & Enforcement
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895
From: Sue Honeybrook
Page 114 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
S
From: Sue Honeybrook
Sent: Friday, 3 June 2016 3:23 PM
To: Michael Cooper
< @finance.nsw.gov.au>
Cc: Charlene Joyce
< @finance.nsw.gov.au>
Subject: Re: Apparent non-compliance of
Manildra Group's ethanol production with
Regulation 3A of the NSW Biofuels
Regulation (2007)
Hello Michael. Just got to Culburra. We did
the tour and Refused - Public interest against disclosure
Page 115 of 321
Regards, Sue
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
< @finance.nsw.gov.au>
wrote:
Michael Cooper
Director Consumer Protection
| Compliance & Enforcement
NSW Fair Trading |
Department of Finance,
Services & Innovation
P 6129895
From: Matt
Dawson
< @minister.nsw.gov.au>
Date: 3 June
2016 at 9:53:15
AM AEST
To: Mark
McKenzie
<markm@acapma.com.au>
Cc: Matthew
Crocker
< @premier.nsw.gov.au>,
Matt Press
< @finance.nsw.gov.au>,
Stephanie Matti
<S @minister.nsw.gov.au>,
@finance.nsw.gov.au"
< @finance.nsw.gov.au>
Page 116 of 321
Subject: RE:
Apparent non-
compliance of
Manildra
Group's ethanol
production with
Regulation 3A
of the NSW
Biofuels
Regulation
(2007)
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi Mark
The Minister
signed a letter
yesterday. It
should be on
its way to you.
Steph can you
please send
Mark a soft
copy?
Michael
Cooper (ccd)
from the
compliance
and
enforcement
team is
investigating
the issue.
Regards
Matt
From: Mark
McKenzie
[mailto:markm@acapma.com.au]
Sent: Friday, 3
June 2016 9:50
AM
To: Matt Dawson
Cc: Matthew
Crocker; Matt
Press
Subject: RE:
Apparent non-
compliance of
Manildra Group's
ethanol
production with
Regulation 3A of
the NSW Biofuels
Page 117 of 321
Regulation
(2007)
Hi Matt,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
investigation of
our inquiry.
Thanks,
Mark McKenzie
Chief Executive
Officer
Australasian
Convenience and
Petroleum
Marketers
Association
Address Suite 6,
Level 12, 56 Berry
Street, North
Sydney, NSW 2060
T 1300 160 270 |
M0447 444 011 |
Emarkm@acapma.com.au
|
Wwww.acapma.com.au
From: Matt
Dawson
[mailto @minister.nsw.gov.au]
Sent: Thursday,
26 May 2016
12:29 PM
To: Mark
McKenzie
<markm@acapma.com.au>
Cc: Matthew
Crocker
< @premier.nsw.gov.au>;
Matt Press
Page 118 of 321
< @finance.nsw.gov.au>
Subject: Re:
Apparent non-
compliance of
Manildra
Group's ethanol
production with
Regulation 3A of
the NSW
Biofuels
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Regulation
(2007)
I believe so but
will defer to
Matt on that.
SentfrommyBlackBerry
From: Mark
McKenzie
Sent: Thursday,
26 May 2016
11:50 AM
To: Matt Dawson
Cc: Matthew
Crocker
Subject: Re:
Apparent non-
compliance of
Manildra Group's
ethanol
production with
Regulation 3A of
the NSW Biofuels
Regulation
(2007)
Thanks Matt,
Can I confirm
that the intent
will still be for
an
accompanying
RIS and
maintenance of
4 weeks for
consultation?
Thanks,
Page 119 of 321
Mark McKenzie
CEO
Australasian
Convenience &
Petroleum
Marketers
Association
Level 12, 56
Berry Street,
North Sydney,
NSW 2060
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
M| 0447 444
011
On 26 May 2016,
at 08:35, Matt
Dawson
< @minister.nsw.gov.au>
wrote:
Hi
Mark
Thanks
for
your
email.
As
youd
appreciate,
we
keep
the
good
burgers
down
at
Fair
Trading
rather
busy
with
a
long
list
of
reform
projects
and
sometimes
things
in
Page 120 of 321
government
are
delayed.
Its
not
being
held
up
in
our
office.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
I
understand
Matt
Press
is
going
to
send
it
out
by
the
end
of
the
week.
Regards
Matt
From:
Mark
McKenzie
[mailto:markm@acapma.com.au]
Sent:
Thursday,
26
May
2016
10:20
AM
To:
Matt
Dawson
Cc:
Matthew
Crocker
Subject:
Re:
Apparent
non-
compliance
of
Page 121 of 321
Manildra
Group's
ethanol
production
with
Regulation
3A
of
the
NSW
Biofuels
Regulation
(2007)
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Thanks
Matt.
Also
curious
on
where
you
are
up
to
wig
the
draft
Biofuels
Regulation
- it
was
expected
last
week
as
per
consistent
advice
provided
by
Fair
Trading
(I
copied
you
in
on
the
email).
Given
Page 122 of 321
the
fact
that
there
has
been
no
response
my
guess
is
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
that
this
had
to
be
referred
to
your
office.
In
an
attempt
to
cut
out
the
middle
man,
can
you
please
advise
when
we
can
now
expect
the
draft
Regulation
?
Thanks,
Mark
McKenzie
Page 123 of 321
CEO
Australasian
Convenience
&
Petroleum
Marketers
Association
Level
12,
56
Berry
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Street,
North
Sydney,
NSW
2060
M|
0447
444
011
On
24
May
2016,
at
09:18,
Matt
Dawson
< @minister.nsw.gov.au>
wrote:
Hi
Mark
A
response
is
in
train.
Ill
check
with
Fair
Trading
to
see
where
its
up
Page 124 of 321
to.
Regards
Matt
From:
Mark
McKenzie
[mailto:markm@acapma.com.au]
Sent:
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Tuesday,
24
May
2016
10:14
AM
To:
Matt
Dawson
Cc:
Matthew
Crocker
Subject:
RE:
Apparent
non-
compliance
of
Manildra
Group's
ethanol
production
with
Regulation
3A
of
the
NSW
Biofuels
Regulation
(2007)
Dear
Matt,
I
refer
to
my
correspondence
of
below
drawing
the
Ministers
Page 125 of 321
attention
to
an
apparent
breach
of
Regulation
3A
of
the
NSW
Biofuels
Act
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
(2007)
by
the
States
monopoly
biofuels
producer
the
Manildra
Group.
I
have
not
yet
had
a
response
to
this
correspondence,
despite
two
weeks
having
now
elapsed.
You
should
be
aware
that
we
understand
that
the
effect
of
this
regulation
(which
relates
Page 126 of 321
to
a
requirement
for
the
fuel
to
be
biosustainable)
has
effectively
created
a
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
barrier
to
new
market
entrants.
It
therefore
follows
that
the
apparent
failure
to
enforce
the
full
provisions
of
this
regulation
appears
to
constitute
a
distortion
of
supply
competition
to
the
sole
benefit
of
the
incumbent.
Could
you
please
advise
the
progress
Page 127 of 321
of
your
investigation
into
the
matters
raised
in
this
letter
at
your
earliest
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
convenience.
Regards,
Mark
McKenzie
Chief
Executive
Officer
Australasian
Convenience
and
Petroleum
Marketers
Association
Address
Suite
6,
Level
12,
56
Berry
Street,
North
Sydney,
NSW
2060
1300
160
270
|
M0447
444
011
|
Emarkm@acapma.com.au
Wwww.acapma.com.au
<image001.png>
Page 128 of 321
From:
Mark
McKenzie
Sent:
Tuesday,
10
May
2016
7:11
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
PM
To:
office@dominello.minister.nsw.gov.au
Cc:
Matt
Dawson
< @minister.nsw.gov.au>;
Matt
Crocker
( @premier.nsw.gov.au)
@premier.nsw.gov.au>
Subject:
Apparent
non-
compliance
of
Manildra
Group's
ethanol
production
with
Regulation
3A
of
the
NSW
Biofuels
Regulation
(2007)
Dear
Minister,
Please
Page 129 of 321
see
attached
letter.
Your
earliest
possible
response
to
this
matter
would
be
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
appreciated.
Yours
sincerely,
Mark
McKenzie
Chief
Executive
Officer
Australasian
Convenience
and
Petroleum
Marketers
Association
Address
Suite
6,
Level
12,
56
Berry
Street,
North
Sydney,
NSW
2060
1300
160
270
|
M0447
444
011
|
Emarkm@acapma.com.au
Wwww.acapma.com.au
<image001.png>
Page 130 of 321
<image001.png>
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 131 of 321
They are just representative samples. They are screw top plastic jars so not airtight. They just sit in their
boardroom and either weren't filled fully or have evaporated.
> On 3 Jun 2016, at 4:05 PM, Michael Cooper < @finance.nsw.gov.au> wrote:
>
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
> The beverage grade ethanol looks like it's down a bit when compared to the fuel grade
>
> Michael Cooper
> Director Consumer Protection | Compliance & Enforcement
> NSW Fair Trading | Department of Finance, Services & Innovation
> P 6129895
>
> Sent from my iPhone
>
>> On 3 Jun 2016, at 3:33 PM, Sue Honeybrook > wrote:
>>
>> Manildra processes
>>
>> <IMG_7237.JPG>
>>
>>
>>
>> Sent from my iPhone
> **********************************************************************************
> This email message and any attached files is confidential and intended solely for the use of the individual or
entity to whom it is addressed and may contain information that is privileged, confidential and/or exempt from
disclosure under applicable law. If you have received this email in error, delete all copies and notify the sender.
>
> This email is subject to copyright. No part of it should be reproduced, published, communicated or adapted
without the copyright owner's written consent. No employee or agent is authorised to conclude any binding
agreement on behalf of the Department of Finance, Services and Innovation (DFSI) by email without express
written confirmation.
>
Page 132 of 321
Hi Sue
Jen
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Jennifer Christensen
Business Operations Manager, Compliance and Enforcement
NSW Fair Trading Department of Finance, Services and Innovation
Level 4 Barrington Building 10 Smith Street Parramatta NSW 2150
p. 02 9895 m.
e. @finance.nsw.gov.au www.fairtrading.nsw.gov.au
Hello Jenn. Could you please advise where our Gift register is please? Charlene and I were each
given a carry bag with some flour and sugar, a cup and a USB stick from Manildra on Friday and
we need to declare it.
Regards, Sue
Sue Honeybrook
Operations Manager
Consumer Protection Unit
NSW Fair Trading - Department of Finance, Services and Innovation
Level 4, The Barrington,10 Smith Street, Parramatta NSW 2150
p: 9895 m:
e: @finance.nsw.gov.au
This email is subject to copyright. No part of it should be reproduced, published, communicated or adapted
without the copyright owner's written consent. No employee or agent is authorised to conclude any binding
agreement on behalf of NSW Fair Trading by email without express written confirmation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 134 of 321
Hello Charls. I have incorporated your fine notes with mine and some I took from our first meeting with
Manildra. They are all over the shop and I will order them when I get a chance but just wanted to get them
down on 'paper' as I'm not feeling 100%.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
If you could have a quick look when you get a minute, I would very much appreciate it.
The last couple in red I wasn't sure how to expand. Happy for you to edit as you see fit.
The meeting was in relation to issues raised by Mark McKenzie, CEO ACAPMA in
his correspondence dated 10 May, 2016.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
It was established that:
Refused - Public interest against disclosure
Refused - Public interest against disclosure
In 2011 Manildra was first certified by the RSB and was the first company in
the world to do the audit 4 certifiers 100% waste product used in the
process to this day, ie., NO feed stock used.
Refused - Public interest against disclosure
The waste water coming out of the process is now used on farms for cattle
and irrigation after Methane is extracted and fed back to plan for fuel. Excess
water is held in open air ponds pending irrigation use duck and water fowl
use these ponds.
Refused - Public interest against disclosure
Refused - Public interest against disclosure
Manildra have been milling Wheat for 60 years, starting out with a small mill
in Manildra with 4 staff. 100% of the grain is used.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Small ethanol plant was commenced in 1992. Ethanol production is the
same as the production of any alcohol, ie., yeast fermentation processing
The Manildra group do not produce products as such, they are commodity
producers and supply many Australian and overseas manufacturers with raw
ingredients
The add-on benefit to employment across many industries in Australia is not
quantifiable
Out of scope
There are three Australian producers of Ethanol.
Manildra has four flour mills at Manildra, Narrandera, Gunnedah and Nowra.
Issue was raised about some of the blocking techniques that could be used
by Service Stations such as poor placement of E10 pumps but also the
number of pnozzles which anecdotally are permanently covered over as the
fuel being unavailable. Manildra staff have noticed this is often done over
the course of weeks and are told that a delivery is coming in tomorrow but the
nozzles are still covered. This would have the effect of forcing consumers to
choose another fuel.
In 2011 Manildra advises that E10 was the largest fuel sold in NSW. In 2011,
the exemption framework appeared which was a game changer and caused
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
the amount of this fuel to steadily decline. There was a domino effect of
exemptions
Out of scope
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Withheld pending third party review rights
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 142 of 321
Hi MES,
Could we please have a response to this corro by June 20. We won't need a brief if all of the information is
contained in the letter.
Thanks,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Steph
-----Original Message-----
From: Public Dominello's Office_Email
Sent: Thursday, 9 June 2016 9:09 AM
To: ministerialservices@finance.nsw.gov.au
Cc: Stephanie Matti
Subject: HP Records Manager Minister's Inwards : IM16/16573 : Corro re ethanol mandate
Hi FT,
Please note this corro is from the Manildra Group. Please prepare a response from the Minister.
Record Number:IM16/16573
Title:Corro re ethanol mandate
Withheld pending third party review rights
Withheld pending third party review rights
Refused - information already available to applicant
Refused - Public interest against disclosure
Page 147 of 321
Hi Val
This one is an IDFT created by C&E so has not progressed to MES at this stage. I will hold off on
doing anything with this response until further notice.
Thanks
Mandy
From: Valerie Griswold
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Wednesday, 15 June 2016 9:22 AM
To: Michael Cooper
Cc: RML C&E
Subject: Re: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Mandy
Can u please discuss w MES. The situation that resulted in this briefing and letter were changed
when the MO sent a letter advising of a direction to be taken contrary to that recommended by
C and E. Thus the issues raised and response will now be quite different. We will need to wait
and see what the expert panel recommends to the MO.
V
Val
In light of the MOs letter to Mr McKenzie, I think we can hold off until we have
finished our enquiries
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Valerie Griswold
Sent: Tuesday, 14 June 2016 5:02 PM
To: RML C&E
Cc: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark
McKenzie
Hi Mick
Does this need to be changed in light of the actions taken by the Minister?
Let me know if we need to discuss.
Regards
V
From: RML C&E
Sent: Friday, 10 June 2016 9:25 AM
To: Valerie Griswold @finance.nsw.gov.au>
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark
Page 148 of 321
McKenzie
Hi Val
This is the only one awaiting approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274
IDFT\FTMIN16-1274 - Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274
IDFT\FTMIN16-1274 - Letter.docx
Thanks
Mandy
From: RML C&E
Sent: Thursday, 2 June 2016 3:18 PM
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Valerie Griswold
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark
McKenzie
Hi Val
Forwarded for approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274
IDFT\FTMIN16-1274 - Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274
IDFT\FTMIN16-1274 - Letter.docx
Thanks
Mandy
From: Michael Cooper
Sent: Monday, 30 May 2016 3:38 PM
To: RML C&E
Subject: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Forwarded for approval
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 612989 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Page 149 of 321
Sonya
I did not ask about the cost.
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Michael, I got a call today from Rachael Hanna at EPA Queensland asking about the cost of RSB
accreditation. Out of scope
When you met with Manildra did they mention when they were accredited and the impact of
the cost. Out of scope
Sonya Thompson
Senior Policy Officer, Policy & Legislation
Yes, appreciate its been a disrupted week. See what review of submissions the team can start to put together for
cob Monday so we are primed for the discussion with Rhys, and the industry workshop next Friday.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
>
> Hi Matt
>
> Thanks for the reminder to get in touch with you about this and thanks Sonya for the list so far.
>
> I am about to get a copy of the register of volume fuel sellers from Ministerial Services to check who we
HAVEN'T received a submission from, then we can target them to find out if they still intend to make
comments.
>
> The progress of our work on biofuels has perhaps not been as fast as hoped this week Matt, due to my
ongoing illness (whole week has been a fog) and the bit of disruption from the move. We will be much more on
top of it early next week and I think a catch up with Rhys on Tuesday (which Diana will also be able to take
part in) is in order.
>
> Lachlan
>
>
> Lachlan Malloch
> A/Senior Policy Officer, Policy and Legislation
> NSW Fair Trading | Department of Finance, Services and Innovation
> t 02 9338
>el @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
> Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
>
>
> -----Original Message-----
> From: Sonya Thompson
> Sent: Friday, 1 July 2016 1:03 PM
> To: Matt Press; Diana Holy
> Cc: Lachlan Malloch
> Subject: RE: Biofuels RIS
>
> We have received submissions from:
> BP Australia
> Caltex Australia
> Woolworths Ltd
> Tasco Petroleum
> North Coast Petroleum
> Australasian Association of Convenience Stores Ltd Biofuels Association of Australia Australasian
Convenience and Petroleum Marketers Association Australian Institute of Petroleum Ltd Manildra Group
>
> -----Original Message-----
> From: Matt Press
> Sent: Friday, 1 July 2016 11:54 AM
> To: Diana Holy
> Cc: Lachlan Malloch; Sonya Thompson
> Subject: Biofuels RIS
Page 151 of 321
>
> How is the review of biofuels reg submissions going?
>
> Do we have subs from all of the key stakeholders yet? If not we should send any laggards a reminder.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 152 of 321
Out of scope
Michael Cooper
Acting Assistant Commissioner
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129896 m
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NMSW 2124
Yes, so I see. I also see a box here of stuff on biofuels to be taken to our office. Presume we will
scan and Trim it as a reference? I anyone on the road today to come and collect it? If not I
could probably arrange for the courier to take it?
And so it begins
Michael Cooper
Acting Assistant Commissioner
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129896 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NMSW 2124
25 June 2015
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Bioethanol Ref Price Jun 1182 24 .2
CFR Batangas (Sep 15) 530-540
Philippines - Ethanol prices are seen unchanged at $530 -
It rd
540/cu m CFR Batangas for Sep 15 arriva l. A distnbutor reported ly
FOB Thai land GPC ($/ cum) 480-735
finali sed a tender to buy 3 m in L of ethanol for Sep 15 delivery last Thai Gasohol 91 THB/L 28.68 (0.40)
Friday, but pnces could not be verified. Another distributor is still 111 Thai Gasohol 95 THB/L 29.50 (0.40)
discussions to purchase up to 12 min L of fuel grade anhydrous for Ref Price Jun THB/L 25.93 (0.10 )
delivery across Aug - Nov 15. Ref Price Jun $/cu m 766 (23)
Thailand - Supply of cassava for ethanol production is expected Thailand: Cassava Production
-
ri Ir 1t "1{ 1
to be abundant, with an 1nit1al forecast suggesting the 15/16 harvest
w ill generate 30.9 m in mt of cassava, up from 30 02 min mt in 14/15,
according to the Thai Tapioca Trade Association and other local
agencies (1" graph). The increase 111 cassava production 1s expected
to resu lt from an estimated 2% gain 1n cassava acreage and 1%
improvement in yields For Jan-Apr 15, cassava ethanol production
reached 120 m in L, up 34% on the year As the expansion of
molasses ethanol production 1s restricted 1n Thailand , the potential
for p roduction growth 1s largely reliant on cassava ethanol. Two new
cassava ethanol projects are expected to reach com mercial
production 111 SH 2015. Indonesia Ethanol Exports
nl11
1t
()11 J 1 ,(1
Indonesia - Ethanol exports in Mar and Apr 15 rebounded from ltl
Feb 15's p oor result (2><l graph) Feb 15 figures were impacted by high 1?
US ethanol imports. Mar 15's 2.8 m in L doubled Feb 15's result but ll
were down 73% y-o-y. In Apr 15, 9.26 m l L was exported, up 24% on
Apr 14. As a result from the lower Feb-Mar 15 exports, cumu lative
sa les from Jan-Apr 15 totalled 49.6 m in L, 13% down on Jan - Apr 14.
down 11.4% on Mar 15. NSW's incorporation rate fell from 2.94% in
150
Mar 15 to 2.79% in Apr 15. Queensland's sales fell 8% m-o-m to 31.0
lCO
m in L, but we re up 4.7% on Apr 14 . The Queensland Government's
"JO
plan to introduce a 2% ethanol mandate from 1 Jul 16 garnered mixed
sentim ent. Livestock producers criticised it for p lacing pressure on 0
c
~ ~ s. ~
,... s: ... ._, ,r c
l[)
grain prices while ethanol producers say the mandate is set too low. ~ < ' . :?' .3 3
<t ' (.
(
n
<..
Page 155 of 321
Green Pool Asia Pacific Ethano l & Bi ofue ls Report 25 June 2015
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
ENA Hydrous 96% 680-700 (10)-(10)
5,900/mt last week. Anhydrous prices were steady at RMB 6.500- REN Hydrous 650-660 (10)-(1 0 )
6,600/mt ($826-839/cu m). Cassava ethanol prices 1n East China I' I t 0 ( I J -Ju t $/cum
also eased as demand from chemica l users is slowing. Imports of ENA Hydrous 96% 550-566 {8)-(8)
REN Hydrous 526-534 (8)-(8)
212 m in L of ethanol in May 15 were sharply up from 7.4 min Lin Apr
111 JI INR/L
15 and an historic high (1" graph) Imports were boosted by
ENA 95% Ex-mi ll 38.0-40.0 (2)-(2)
undenatured shipments from Pakistan (12.5 min L) and Vietnam (8.6 Industrial 95% Ex-m ill 33.0-35.0 (2)-(2)
m in L) (2d graph). Both suppliers enJOY duty free access to China for
their product under trade agreements. Most imported ethanol is for China -Ethanol Imports & Exports
chemical use 1n East China and South China. Imports for Jan-May 15 ?I 'lllr ._
surged to 36.2 min L, almost trip le the 13.5 min L imported last year. u
1<;
The strong imports we re driven by the price gap between Chi na and
key regional producers. The recovery of chemical demand also
fueled the imports. China exported 3.8 m in L of ethanol in May 15, I,
down from 6.3 min L 1n Apr 15. The key dest1nat1on is still Philippines,
taking 2.4 min L, or 63% of total. Local sources suggest the export 1!:.
was done by corn ethanol producers, taking advantage of the
government 1ncent1ve for a VAT rebate for corn ethanol exports. l'I' :::- _! ~ "i:;;: L"") lf)
l~(l~):t1 )rr,i..l.
' ll ll
South Asia Tl JllJI I
c 111,
Paki stan - Bulk ethanol shipments 111 May15 were down 44%
from April 15, to 42.6 min L. The monthly figure is also 32% lower than
the 62.6 m in L shipped a year earlier (final graph). Asta was the key
~ I'' ~
~-
~, ~ ~ ~ ~ :: ;_r \"'
buyer, taking 33.6 m in L tn May, or 79% of the total. China (29 5 m in L) - Q - -; r
L
~ <I. r "' "'
_l.
<1
-
)
"' ~
24.8 m in L of ethanol to the EU, sharply down from the 42.4 min Lin 11
E ,t A~1a & C1 ori: EJ
r.11dJIL L ,,t
Jan-May 14. Whtie Pakistan enjoys duty free access to the EU market oO
under GSP, depressed EU ethanol prices and lower demand have 50
10
II11~ II
reduced Pakistan's exports to EU. The emergence of China as new
1;.J
destination has partially offset the loss of the EU market. Exports to
20
Asia rose to 137.6 min L for Jan-May 15, up from 124.4 min La year
ago. However, cumulative bulk shipments were down to 201.7 m in L
10
111111
w 5:.:
II 111 ~
I
.2,..
11.11.
~ :: ::! ::! ! ~
for Jan-May 15, from 214 m in L for Jan-May 14. c
~
i
:::!
""
Q
~>
Cl
~ "' "
:;,;
a.
v1
(
ru
>
"'
::;; ii'
n
~
~
'
_.,,
""
Page 156 of 321
I apologise for the late email on this; I have also left a voicemail message on your mobile
this afternoon.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Thank you for theManildra Group submission to the public consultation on the proposed
new Biofuels Regulation 2016.
NSW Fair Trading will be hosting a biofuelsindustry roundtable meeting from 3 - 5pm this
Friday, 8 July in our Sydney office (level 8, McKell Building, 2-24 Rawson Place). We expect
about a dozen organisations to attend.
At the meeting, Fair Trading will seek views on the draft Regulation and discuss the next steps for
finalising the legislation, including the implementation timetable.
We will also be able to provide the first summary of the information from the industry data
collection request which closed last week.
Could you please make contact to let me know if arepresentative from your organisation
willattend, and if so,who?If Manildra is unable to attend in person, we would be happy to dial
you in on theteleconferencing phone.
Regards,
Lachlan
Lachlan Malloch
Acting Manager, Policy and Legislation
Better Regulation Division| Department of Finance, Services and Innovation
(w) 9338 (m)
@finance.nsw.gov.au
Page 157 of 321
Michael Cooper
Director Consumer Protection | Compliance & Enforcement
Level 4 | 10 Smith Street, Parramatta
NSW Fair trading
Perhaps not. That's 500,000 a month. When my Dad was a Shell service station proprietor he said hitting half a million in a month was a boomer of a result.
Manildra Out of scope propose a volume sales threshold of 250,000 litres per quarter in order to capture a good portion of the market (or 1 million per year).
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
So perhaps the 75% figure isn't so crazy ?
Lach
Page 158 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
As requested, you can find the collated table in the following folder:
I will contact Mary Jane for the non-bulk data as discussed and add it into the excel file.
Cheers
Ernie Chan
p: 02 9338
e: @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
DFSI Logo
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Michael Cooper
Cc: Diana Holy; Lachlan Malloch
Subject: Call from Qld - RSB and accreditation of biofuels suppliers
Michael, Rachel Hanna from Qld called about RSB and accreditation of biofuels suppliers. They
are looking at what we are doing, in particular the detail of how RSB compliance is enforced and
how we might treat a new entrant to the NSW market.
We are currently moving to the other side of L9 and I will lose access to email and phone
sometime early tomorrow afternoon and not be back online until sometime Friday. Queensland
people are happy to come here to speak to us, but I was hoping that you might be able to call
Rachael this week or next week to discuss your recent experience with the complaint against
Manildra. Her phone contact is or mobile (better this week) .
Sonya Thompson
Senior Policy Officer, Policy & Legislation
Hello Steph
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sorry for the lateness of these.
Could you please let me know if OK to issue to Murray Johnston of the Small Business
Commissioners Office? He is keen for Robyn Hobbs to have some information to
understand her potential role here.
Best regards,
Lachlan
Lachlan Malloch
Acting Manager, Policy and Legislation
NSW Fair Trading | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
the Minister and the Small Business Commissioner.
I look forward to our discussions on Monday.
Regards,
Lachlan
Lachlan Malloch
Acting Manager, Policy and Legislation
NSW Fair Trading | Department of Finance, Services and Innovation
t 02 9338
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Page 165 of 321
Hi Murray here are biofuels docs for the discussion on Monday. Not sure if our MO will
provide to Robyn separately but wanted to send through to you direct anyway.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Out of scope
116 2016-2017
009 -
ss) A
A
nformation (Pu
r the Governme
Information released u
Page 1
Page 167 of 321
SUMMARY OF SUBMISSIONS - BIOFUELS REGULATION 2016
FA#11 20 6-2017
Australian Institute of e
AIP members oppose mandates but will work constructively with Government
Petroleum Ltd Delay commencement additional
threshold and education campaign. Delay implementation/consultation until this information is
available
Volume sales threshold data collection findings should be used to determine threshold,
on rel
r
Page 2
Page 168 of 321
SUMMARY OF SUBMISSIONS - BIOFUELS REGULATION 2016
BP Australia
Out of scope david.stuart1@bp.com Does not support mandates which distort the operation of the market. The mandate has had the
David Stuart unintended consequence of concentrating ethanol production in one source
Director, Government Affairs Issues: retailers and consumers prefer RULP/PULP; manufacturers do not recommend E10; price
difference between E10 & RULP < 3% (not cost effective). BP recognises that Government has
already identified these issues and are working to address.
-2017
More detailed economic assessment of regulatory options needed (cost-benefit analysis)
116 20
No detail of the IPART process under the new legislation
Delay commencement implementation and clarifying enforcement in implementation period
F
Exemptions reasonable steps test supported, subject to appropriate exemptions. Supports 2
Page 3
Page 169 of 321
SUMMARY OF SUBMISSIONS - BIOFUELS REGULATION 2016
Volume sales threshold 1 million litres pa petrol (250,000 per quarter), exclude diesel to
protect specialist sites in regional areas which supply mainly diesel. Would also be
consistent with Queensland legislation
Exemptions regime too lax
Add to reasonable steps test - upgrade infrastructure, E10 minimum should be exactly 10%
ethanol not 9% (this would increase RON of E10 to 95), specify minimum requirements for
marketing including minimum of 6% of marketing budgets, ethanol blended fuel must be
Out of scope
the G
ed un
ion re
Infor
Page 4
f
t
c
s
e
p
o
o
u
O
Page 5
Page 170 of 321
SUMMARY OF SUBMISSIONS - BIOFUELS REGULATION 2016
Information released u r the ernment Information (Public Access) Act 2009 - FA# 6-201
Page 171 of 321
Attendance
Minister Dominello
Ministerial staff
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Small Business Commissioner Robyn Hobbs
Fair Trading
Commissioner Rod Stowe
Michael Cooper
Rhys Bollen
Matt Press
Lachlan Malloch
1. BACKGROUND
1.1 Timetable to commencement and beyond
8 July industry roundtable meeting
11 July MO de-brief by phone
15 July papers circulated for special Expert Panel meeting
18 July meeting with Minister and Small Business Commissioner
week of 18 July publish data collection results on FT website
20 July special Expert Panel meeting:
* Small Business Commissioner attending
* Regulation proposals
* Consider new exemption classes and recommend to Minister
1 Aug circulate final Regulation proposals to industry roundtable
17 Aug (aim for) Regulation package, incl. revised Ministerial Guidelines for
Expert Panel to reach Secretary Minister
24 Aug deadline for ExCo papers
31 Aug ExCo meeting to approve new Regulation
Ministerial media release?
1 Sept * Amendment Act and Regulation commence
* New global Ministerial exemption order comes into effect (?)
6 Sept Next quarterly Expert Panel meeting
1 Jan 2017 New regime commences for existing regulated entities (?)
1 April 2017 New regime commences for newly regulated entities (?)
1
Page 172 of 321
Biofuels Regulation 2007 will lapse on 1 September 2016 and must be remade
Consultation draft Regulation + Regulation Impact Statement released in May
Major questions in RIS include:
o amended exemptions framework
o commencement date and compliance considerations, including penalties
regime
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
o reporting requirements, including sustainability certification, nozzles &
bowsers offering E10 and RULP
o availability of E10 requirement (as accessible as any other type of petrol)
volume sales threshold
Submissions closed end of June
Total 12 submissions received, including 11 from industry
Submissions currently being uploaded to Fair Trading website
2
Page 173 of 321
New mandate will apply to volume fuel retailers only (not wholesalers):
o Service stations selling three or more types of petrol or diesel AND petrol + diesel
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
sales exceed the volume sales threshold to be set by the Regulation
o Operators of more than 20 service stations, regardless of whether they exceed the
volume sales threshold
Recommendation
Volume sales threshold to be set at 750,000 litres per quarter (3 million per year), which
would capture approximately 61% of service stations (1,200) and 87% of total market
volumes.
This would represent an increase of approximately 400 service stations over the current
mandate.
Recommendation
Finalise new Biofuels Regulation during August 2016 and commence together with
Amendment Act on 1 September 2017.
Settle undecided aspects of new regime within the next four weeks, make Biofuels
Regulation 2016 during August ready for 1 September 2016 commencement
Industry concern with mass non-compliance upon commencement assuaged by
proposal for automatic global exemptions to provide lead time or grace period for
operators to comply
Requirement for statutory review of Act in 2019 if commencement delayed then
validity of review erodes
3
Page 174 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
2016
Industry concern over mass non-compliance/penalties if new regime with hundreds of
newly regulated operators commences so soon
Recommendation
Due to exceptionally short lead-time, Minister to grant two global exemption orders to apply
from 1 September as transitional arrangements:
o Currently regulated entities until 31 December 2016
o Newly regulated entities until 31 March 2017
o Aligned with reporting quarters under the Act
o Currently regulated entities would only be exempt from the new requirements
o Possible form of Ministerial exemption orders drafted
4
Page 175 of 321
Recommendations
Codify in the Regulation grounds for claiming economic unviability
Codify in new Ministerial Guidelines other grounds for exemption, including planning
approval, hardship to local community, specialist supplier, unavailability of
contractors
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
between additional infrastructure upgrade costs as a result of a mandate, as
compared to business as usual capital expenditure
Out of scope
Consider submission on capital exemptions threshold
Fair Trading is investigating indicative costings for infrastructure upgrades, based on
several different scenarios
Likelihood of additional capital expenditure to be passed on as higher fuel price per
litre what is the tolerance?
Impact on E10 retail price from new IPART roles of setting fair wholesale price of
ethanol and monitoring retail price of E10 is as yet unknown
Out of scope
ATTACHMENT 3 submission
ATTACHMENT 4 exemptions categories
ATTACHMENT 5 flow chart: pathways to compliance
Out of scope
5
Page 176 of 321
The new Regulation will also require compliance with an updated sustainability
standard for biofuels (version 2.0).
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Retailers also state difficulty in knowing the portion of biodiesel they sell, because
Commowealth law enables up to 5% biodiesel blends (B5) to be labelled as simply
diesel. But it may be that retailers are simply not asking any questions about this
issue. Instead, they could be making due diligence inquiries as to the providence and
composition of the fuel they are selling.
Recommendation
Maintain all reporting and certification requirements, at least during an initial phase.
6
Page 177 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: RE: South Coast Register: Manildra claims ethanol mandate leniency places jobs at risk
Great, so does this mean we need another audit team to look at sales returns?
Sue Honeybrook
Operations Manager
Consumer Protection Unit
FYI
fyi
Rhys Bollen
A / Assistant Commissioner, Policy & Strategy | NSW Fair Trading | Department of Finance,
Services and Innovation | p 02 9338 | f 02 9338 m |e
@finance.nsw.gov.au | www.fairtrading.nsw.gov.au | Level 9, 2-24 Rawson Place,
Sydney NSW 2000
Regards
W:www.trade.nsw.gov.au
I generally work Monday, Tuesday, Wednesday and Friday
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Manildra claims ethanol mandate leniency places jobs at risk
South Coast Register, Nowra NSW byAdam Wright 17 Jul 2015
General News - page 6 - 331 words - ID 436299051 - Photo: No - Type: News
Item - Size: 146.00cm2
JOBS at the Manildra plant in Bomaderry are under threat, according to a company spokeswoman because
the NSW government won't enforce the state's ethanol mandate.
The NSW opposition has called for the government to release the findings of a report into the future of
ethanol production, and the 6 per cent mandate in NSW.
The report by the Independent Pricing and Regulatory Tribunal (IPART) was completed in May.
The Manildra spokeswoman said unless the government enforced the mandate requiring ethanol to make
up 6 per cent of the petrol sold in the state, jobs at the Bomaderry plant as well as investment and further
development were at risk.
However, NSW ethanol sales were only at 2.79 per cent of total NSW petrol consumption.
The spokeswoman said the Bomaderry plant was operating below capacity due to the lack of mandate
enforcement.
"The Manildra Group had invested $350 million in the ethanol plant at Nowra to meet the bipartisan fuel
ethanol mandate," she said.
"NSW failing the ethanol mandate is due to a number of factors including consumer awareness, a flawed
exemption regime and lack of government enforcement." She said sales were declining significantly and
believed it was an indication exemptions granted in advance were circumventing the mandate.
"Lenient exemptions have been granted to most oil majors, from February 2015 to the end of September
2015, a total of eight months of exemptions," the spokeswoman said.
Shadow minister for the Illawarra Ryan Park called on Kiama MP Gareth Ward to "come clean with the
local community and tell them what his government planned to do with ethanol production".
"This is not the way to conduct government and nor is it the way to treat the people of the Illawarra," he
said.
Shadow minister for Industry, Resources and Energy Adam Searle accused the state government of sitting
on the ethanol report.
This message is intended for the addressee named and may contain confidential information. If you
are not the intended recipient, please delete it and notify the sender. Views expressed in this
message are those of the individual sender, and are not necessarily the views of their organisation.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
This message is intended for the addressee named and may contain confidential information. If you
are not the intended recipient, please delete it and notify the sender. Views expressed in this
message are those of the individual sender, and are not necessarily the views of their organisation.
Page 180 of 321
Hello Michael
I am putting together some info in response to concerns raised at the biofuels industry
roundtable meeting on 8 July.
Mark McKenzie stated he was awaiting a response from the Minister on his concerns
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
with Manildras compliance with the biofuels sustainability standard.
Are you able to tell me where thats up to? I have seen the draft minutes from the June
expert panel meeting and it was discussed there.
Thanks a bunch,
Lach
Lachlan Malloch
A/Senior Policy Officer, Policy and Legislation
NSW Fair Trading | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Hi Rachael
Did you want the number of the RSB auditor her in Australia. If so phone number is
Refused - public interest
against disclosure
listed below
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi John
Thanks this
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 61298950861 m 0427 603 291
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Withheld pending third party review rights
Page 182 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 183 of 321
The draft I received of the Expert Panel minutes is attached, and can be found in
FTMIN16/1728.
Lach
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
If you can send me the minutes of the expert panel where this was discussed I should be able to
finalised it completely
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Michael
Thanks very much. Yes, I was only concerned to follow up that a response was being
prepared for Mr McKenzie.
Regards,
Lach
Lachlan Malloch
A/Senior Policy Officer, Policy and Legislation
NSW Fair Trading | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Page 184 of 321
Lachlan
Is this enough
Michael Cooper
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Approved
Kind Regards
Dave
Lachlan Malloch called about the progress of this matter, as it was mentioned at the Expert
Panel of Biofuels. It specifically addresses the issues raised by Mr McKenzie concerning
Manildra. Out of scope
Page 185 of 321
Out of scope
Can supply the legal advice is you want.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Val
In light of the MOs letter to Mr McKenzie, I think we can hold off until we have finished our
enquiries
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Mick
Does this need to be changed in light of the actions taken by the Minister?
Regards
V
Hi Val
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
- Letter.docx
Thanks
Mandy
Hi Val
Thanks
Mandy
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Page 187 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 188 of 321
Sonya
In reviewing the RSB certifications issue to Manildra, the auditor makes in quite clear that he has issued the
certificate based on information supplied by Manildra. In doing the audit the auditor checks ranges of things
such as the award conditions of third party contractors working on the site (which lead to a non-compliance for
Manildra) but they do not do anything to confirm or deny the information given to them by the company
concerned.
Manildra only has the certification for the waste component of their operation. As I understand the standard, a
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
company can get an RSB certification whether it uses virgin feedstock or waste product and if you want to use
the RSB logo you need to prove continuity of all your products from the field to the shelf but as Manildra is not
using the logo they have not gone to that expense.
As there is no legal requirement in Australia for a Green House Gas assessment and there is no requirement only
to produce ethanol from waster product I would wonder what the logic is behind having companies secure an
RSB certification.
It may be worth thinking about because if ethanol use picks up and production increases then companies may
start to use feedstock to make or supplement ethanol production. This may then impact upon the price and
availability of stock feed for farmers etc
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Diana/Michael, see latest from BAA on accreditation of biofuels suppliers other than Manildra. Michael, you
would have more experience of this than us at Policy, but my feeling would be that we dont allow businesses to
self-verify compliance where there is an external certification process as part of the standard. Do you have any
comment on this?
Sonya
Sonya, it is not an issue of updating to version two as much as allowing the flexibility for the company to
demonstrate it meets the standard by compiling the information themselves rather than outsourcing it
completely.
Happy to discuss,
Regards
Mark
Page 189 of 321
Mark, is the issue that we are updating the version of the standard from Version Zero to Version 2? Do you have
an alternative standard rather than a self-certification process?
Sonya
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: Re: comment on prescribed biofuels sustainability standard
Hi Sonya,
Key points from our members is the new standard will impose significant cost on producers - up to $200,000.
We would request this be minimised by allowing producers to undertake their own assessment and use third
parties (consultants) where appropriate.
Kind regards,
Mark Sutton
Mark, your submission on the Regulatory Impact Statement for the Biofuels Regulation said you
would be consulting further with your members on the prescribed sustainability standard. We are
hoping to finalise the Regulation this week. Did you have any comment to add at this time or a
timeline for further consultation?
Sonya Thompson
Senior Policy Officer, Policy & Legislation
<image001.jpg>
**********************************************************************************
This email message and any attached files is confidential and intended solely for the use of the
individual or entity to whom it is addressed and may contain information that is privileged,
confidential and/or exempt from disclosure under applicable law. If you have received this
email in error, delete all copies and notify the sender.
exempt from disclosure under applicable law. If you have received this email in error, delete all copies and
notify the sender.
This email is subject to copyright. No part of it should be reproduced, published, communicated or adapted
without the copyright owner's written consent. No employee or agent is authorised to conclude any
binding agreement on behalf of theDepartment of Finance, Services and Innovation (DFSI) by email
without express written confirmation.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 191 of 321
yes
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Matt Dawson [mailto: @minister.nsw.gov.au]
Sent: Friday, 12 August 2016 9:43 AM
To: Michael Cooper
Cc: Rodney Stowe; Rhys Bollen
Subject: FW: Response to letter of 10 May 2016 alleging breach of Regulation 3A of NSW Biofuels
Act (2007)
Hi Michael
Can you please respond directly to Mark.
Regards
Matt
From: Mark McKenzie [mailto:markm@acapma.com.au]
Sent: Friday, 12 August 2016 9:28 AM
To: Matt Dawson
Cc: Nigel Blunden
Subject: Response to letter of 10 May 2016 alleging breach of Regulation 3A of NSW Biofuels Act
(2007)
Dear Matt,
I refer to our letter of 10 May 2016 (see attached).
In our letter we allege that at least 50% of the biofuel being manufactured at the Shoalhaven
facility is not compliant with the RSB Certification issued to the Manildra Group - noting that
the RSB Certification forms the basis of Manildras compliance with the requirements of the
Biofuels Act to supply a sustainable biofuel (i.e. Regulation 3A of the 2007 NSW Biofuels
Regulation).
Specifically, we understand that Manildra may be using an average 50% of Virgin agricultural
feedstock in its ethanol manufacturing operations as opposed to the use of waste agricultural
feedstocks as stipulated in their current RSB Certification for the Shoalhaven facility.
The use of virgin agricultural feedstocks in the manufacturing process means that the GHG
emissions benefit previously cited by Minister Dominello in the NSW Parliament in late March
2016 is unlikely to be correct (i.e. International GHG accounting principles dictate that the use
of a virgin feedstock requires attribution of the embodied emissions associated with the
production of that feedstock be assigned to the fuel process, thereby reducing the quantum of the
marginal GH benefits enjoyed by some ethanol production processes).
Notwithstanding the inherent environmental and sustainability aspects of this issue, of most
interest to us should this observation be proven correct - is that 50% of the ethanol being
delivered into the NSW market is being supplied in breach of the requirements of the NSW
Biofuels Act (2007).
We consider this to be a very serious issue given the NSW Governments push for greater sales
of ethanol (with its attendant compliant costs for the fuel retail industry and associated risks to
small business destruction and employment loss in regional NSW) as it indicates that the level
of compliant supply is likely to be insufficient to support growth beyond current observed levels
of E10 demand.
We also draw your attention to an apparent inequity here created by the NSW Governments
Page 192 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
letter of 10 May 2016.
Yours sincerely,
Mark McKenzie
Chief Executive Officer
Australasian Convenience and Petroleum Marketers Association
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M 0447 444 011 | E markm@acapma.com.au | W www.acapma.com.au
Page 193 of 321
I thought so. Will bring up to Rod at todays 1:1 with him. Will need corro in response.
Thank you
V
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Mick
I will discuss with Rod. It would be a good idea to draft something up (for whoevers signature
Rod thinks appropriate). Is the rest of the Biofuels group aware of this situation? Obviously, the
MO has been made aware by Mr McKenzie.
Regards
Valerie
Val
Do you want to raise this with Rod. I can write a response for Rods, yours or my signature
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi Mark
I know Fair Tradings Compliance and Enforcement team were investigating this matter.
Ive asked Michael Cooper to respond to you directly with an update.
Regards
Matt
Dear Matt,
In our letter we allege that at least 50% of the biofuel being manufactured at the Shoalhaven
facility is not compliant with the RSB Certification issued to the Manildra Group - noting that
the RSB Certification forms the basis of Manildras compliance with the requirements of the
Biofuels Act to supply a sustainable biofuel (i.e. Regulation 3A of the 2007 NSW Biofuels
Regulation).
Specifically, we understand that Manildra may be using an average 50% of Virgin agricultural
feedstock in its ethanol manufacturing operations as opposed to the use of waste agricultural
feedstocks as stipulated in their current RSB Certification for the Shoalhaven facility.
The use of virgin agricultural feedstocks in the manufacturing process means that the GHG
emissions benefit previously cited by Minister Dominello in the NSW Parliament in late March
2016 is unlikely to be correct (i.e. International GHG accounting principles dictate that the use
of a virgin feedstock requires attribution of the embodied emissions associated with the
production of that feedstock be assigned to the fuel process, thereby reducing the quantum of the
marginal GH benefits enjoyed by some ethanol production processes).
Notwithstanding the inherent environmental and sustainability aspects of this issue, of most
Page 195 of 321
interest to us should this observation be proven correct - is that 50% of the ethanol being
delivered into the NSW market is being supplied in breach of the requirements of the NSW
Biofuels Act (2007).
We consider this to be a very serious issue given the NSW Governments push for greater sales
of ethanol (with its attendant compliant costs for the fuel retail industry and associated risks to
small business destruction and employment loss in regional NSW) as it indicates that the level
of compliant supply is likely to be insufficient to support growth beyond current observed levels
of E10 demand.
We also draw your attention to an apparent inequity here created by the NSW Governments
inconsistent administration of relevant provisions of the NSW Biofuels Act (2007).
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
On the one hand, our industry is being required to comply with increasing levels of regulation
that merely amount to increased compliance costs for a fuel that the majority of the NSW
market does not want to buy (as proven by more than 8 years of operation of the NSW Biofuels
mandate).
On the other hand, the States monopoly biofuels producer - the sole beneficiary of the 2007
Biofuels Act - is apparently being excused from compliance with all key provisions of the Act.
Despite receiving several emails from your office and NSW Fair Trading Officers that
ACAPMA would shortly receive a response to this issue, we have not received a response to
our letter of 3 months ago.
In light of the imminent changes to the NSW Biofuels Act foreshadowed by the NSW
Government, we consider this issue to a material consideration to the finalisation of the new
Biofuels Regulation and are therefore seeking an immediate response to the issues raised in our
letter of 10 May 2016.
Yours sincerely,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | Wwww.acapma.com.au
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Dave
Lachlan Malloch called about the progress of this matter, as it was mentioned at the Expert
Panel of Biofuels. It specifically addresses the issues raised by Mr McKenzie concerning
Manildra. Out of scope
Can supply the legal advice is you want.
Val
In light of the MOs letter to Mr McKenzie, I think we can hold off until we have finished our
enquiries
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
Page 197 of 321
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Mick
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Does this need to be changed in light of the actions taken by the Minister?
Regards
V
Hi Val
Thanks
Mandy
Hi Val
- Brief.docx
Thanks
Mandy
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Mark
Sorry for not responding sooner. I will re-read my notes and give you ring asap. Just confirming
your concerns that Manildra has secured a RSB Certification in compliance with Section 3A of
the Biofuels Act in which it states that the ethanol produced by Manildra which is the subject of
certification comes from waste starch. I acknowledge that in 2007 Mr John Honan told a
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Victorian parliamentary committee that at that time Manildra produced ethanol using 50
percent waste product and 50 percent raw product. However, I put this allegation to Mr John
Honan and he stated that 9 years ago that was in fact Manildra processes but they no longer use
raw product in ethanol production. I have also spoken to Mick Berry the RSB Certifier who
issued the certification. He stated that he based his certification based on information supplied
by Manildra and did not have any reason to doubt the information that was supplied.
You did indicate that you had further documentary proof that Manildra is currently using raw
product in its ethanol production. Can you please send this information to me as it will assist in
taking this matter further
Regards
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Michael,
I have left yet another message with you at the head office switchboard in Parramatta (been told
that you cant take my call as you are busy).
I am ringing in relation to the email of below which follows on from a letter written to Minister
Dominello on 10 May 2016 about an alleged breach of Regulation 3A of the NSW Biofuels Act
(2007).
To date, we have been patient with this process but are getting a bit miffed at the apparent
inability of NSW Fair Trading (and the NSW Government) to respond to what we consider to be
a serious issue.
Page 200 of 321
It would be appreciated if you could make contact with me to provide an update on this matter
(as per the email of below) at your earliest convenience.
Regards,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi Mark
I know Fair Tradings Compliance and Enforcement team were investigating this matter.
Ive asked Michael Cooper to respond to you directly with an update.
Regards
Matt
Dear Matt,
In our letter we allege that at least 50% of the biofuel being manufactured at the Shoalhaven
facility is not compliant with the RSB Certification issued to the Manildra Group - noting that
the RSB Certification forms the basis of Manildras compliance with the requirements of the
Biofuels Act to supply a sustainable biofuel (i.e. Regulation 3A of the 2007 NSW Biofuels
Regulation).
Specifically, we understand that Manildra may be using an average 50% of Virgin agricultural
feedstock in its ethanol manufacturing operations as opposed to the use of waste agricultural
feedstocks as stipulated in their current RSB Certification for the Shoalhaven facility.
The use of virgin agricultural feedstocks in the manufacturing process means that the GHG
emissions benefit previously cited by Minister Dominello in the NSW Parliament in late March
Page 201 of 321
2016 is unlikely to be correct (i.e. International GHG accounting principles dictate that the use
of a virgin feedstock requires attribution of the embodied emissions associated with the
production of that feedstock be assigned to the fuel process, thereby reducing the quantum of the
marginal GH benefits enjoyed by some ethanol production processes).
Notwithstanding the inherent environmental and sustainability aspects of this issue, of most
interest to us should this observation be proven correct - is that 50% of the ethanol being
delivered into the NSW market is being supplied in breach of the requirements of the NSW
Biofuels Act (2007).
We consider this to be a very serious issue given the NSW Governments push for greater sales
of ethanol (with its attendant compliant costs for the fuel retail industry and associated risks to
small business destruction and employment loss in regional NSW) as it indicates that the level
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
of compliant supply is likely to be insufficient to support growth beyond current observed levels
of E10 demand.
We also draw your attention to an apparent inequity here created by the NSW Governments
inconsistent administration of relevant provisions of the NSW Biofuels Act (2007).
On the one hand, our industry is being required to comply with increasing levels of regulation
that merely amount to increased compliance costs for a fuel that the majority of the NSW
market does not want to buy (as proven by more than 8 years of operation of the NSW Biofuels
mandate).
On the other hand, the States monopoly biofuels producer - the sole beneficiary of the 2007
Biofuels Act - is apparently being excused from compliance with all key provisions of the Act.
Despite receiving several emails from your office and NSW Fair Trading Officers that
ACAPMA would shortly receive a response to this issue, we have not received a response to
our letter of 3 months ago.
In light of the imminent changes to the NSW Biofuels Act foreshadowed by the NSW
Government, we consider this issue to a material consideration to the finalisation of the new
Biofuels Regulation and are therefore seeking an immediate response to the issues raised in our
letter of 10 May 2016.
Yours sincerely,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: RE: URGENT Meeting briefing request - Meeting with Dick Honan Chairman Manildra Group
to discuss ethanol mandate - due COB Monday, 5 September
Kind regards
Kat
Hi MS
Please prepare a briefing for the following meeting and also advise of a Departmental representative
who will attend the meeting (likely Rhys or Matt P):
Meeting with Dick Honan Chairman Manildra Group to discuss ethanol mandate
Wednesday, 7 September 2016 10:00 AM-10:30 AM
Location Level 18, 52 Martin Place, SYDNEY, NSW
More info attached
Due date: COB Monday, 5 September
Kind regards
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Page 203 of 321
T: 02 8574
E: @minister.nsw.gov.au
P:GPO Box 5341 Sydney NSW 2001
Pleaseconsider the environment before printing this email
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Withheld pending third party review rights
Page 205 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
The meeting is next week and is dues back to MS by COB Friday 2 September.
If you need the documents sent direct please let me know and I can forward
Kind regards
Kat
Kathleen Farrell
Systems and Reporting Advisor, Ministerial Services
Alicia, also I just need the overall figure for the industry, not volume seller breakdown.
Thanks
Sonya
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Alicia Facal
Subject: RE: time critical: FTMIN16/2009 : Meeting with Dick Honan - Chairman Manildra Group -
Discussion about Ethanol Mandate
Hi Sonya
I'll do my very best to get these to you bytoday. Will you be able to accept them tomorrow
if I get stuck? I'm working at OSR at Parramatta today and my systems access is very
limited.
Thanks,
Alicia
Alicia, the Minister is meeting with Manildra next week to talk about ethanol. Are the
consolidated industry figures for the ethanol mandate for 2Q2016 available yet? They are not
on the website, but if available I will include in the meeting brief.
Thanks
Sonya
From: RMLPolicySM
Sent: Tuesday, 30 August 2016 12:16 PM
To: Lachlan Malloch
Page 207 of 321
I:\MinisterialCorrespondence\2016\FTMIN16-2001 to 3000\FTMIN16-2009
Evelyn
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Document : SMO
Type (FT)
Record : FTMIN16/2009
Number
Date Due : Monday, 5 September 2016
Title : Meeting with Dick Honan - CHairman Manildra Group - Discussion about
Ethanol Mandate
Author : Honan, Dick
Response : MINISTER (INNOVATION & BETTER REGULATION)
By
Notes : FROM MO: Please prepare a briefing for the following meeting and also advise
of a Departmental representative who will attend the meeting (likely Rhys or
Matt P):
Meeting with Dick Honan Chairman Manildra Group to discuss ethanol
mandate
Wednesday, 7 September 2016 10:00 AM-10:30 AM
Location Level 18, 52 Martin Place, SYDNEY, NSW
Dear Rod
Please find attached a proposed agenda for todays discussion about biofuels reforms.
Regards,
Lachlan
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t 02 9338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Page 209 of 321
BIOFUELS REFORMS
1pm 1:45pm
Attendees
Rod Stowe
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Rhys Bollen
Michael Cooper
Diana Holy
Lachlan Malloch
Sonya Thompson
Proposed agenda
4. Other matters
a. Estimates today
b. Manildra meeting with Minister
Page 210 of 321
Hi Sonya
The Mark McKenzie corro about whether or not Manildra complies with the biofuels
sustainability standard is in FTMIN16/1110.
It seems only an interim response has been sent at this stage; the final (prepared) by
Michael Cooper yet to be signed.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
el @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Cc: RMLPolicySM; Diana Holy
Subject: RE: time critical: FTMIN16/2009 : Meeting with Dick Honan - CHairman Manildra Group -
Discussion about Ethanol Mandate
Hi again Sonya
Could you please put down Rhys, Diana (no need for Matt) and Michael Cooper as the
Departmental representatives at this meeting?
Many thanks,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Dear Sonya
Could you please prepare a meeting briefing for the Minister to talk to Manildra Group
next week?
Its due to Ministerial Services by next Monday, so could you please send through to me
for approval by mid-morning on Friday this week (2 September)?
As well as a general precis of the proposed new biofuels regime, I think the briefing will
need to address the views put my Manildra in their addendum submission to the
Regulation consultation, attached here and saved in the G: drive under Regulation
Remake/RIS submissions.
Page 212 of 321
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
From: RMLPolicySM
Sent: Tuesday, 30 August 2016 12:16 PM
To: Lachlan Malloch
Cc: Diana Holy; RMLPolicySM
Subject: FTMIN16/2009 : Meeting with Dick Honan - CHairman Manildra Group - Discussion about
Ethanol Mandate
I:\MinisterialCorrespondence\2016\FTMIN16-2001 to 3000\FTMIN16-2009
Evelyn
Document : SMO
Type (FT)
Record : FTMIN16/2009
Number
Date Due : Monday, 5 September 2016
Title : Meeting with Dick Honan - CHairman Manildra Group - Discussion about
Ethanol Mandate
Author : Honan, Dick
Response : MINISTER (INNOVATION & BETTER REGULATION)
By
Notes : FROM MO: Please prepare a briefing for the following meeting and also advise
of a Departmental representative who will attend the meeting (likely Rhys or
Matt P):
Meeting with Dick Honan Chairman Manildra Group to discuss ethanol
mandate
Wednesday, 7 September 2016 10:00 AM-10:30 AM
Location Level 18, 52 Martin Place, SYDNEY, NSW
Michael Cooper
Director Consumer Protection | Compliance & Enforcement
Level 4 | 10 Smith Street, Parramatta
NSW Fair trading
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent from my iPad
Dear Michael
The Minister is meeting with Manildra (Dick Hohnan and Kirsty Beavon)
next Wednesday, 7 September at 10am, 52 Martin Place.
Manildra wants to talk about declining ethanol sales in NSW.
We are writing the meeting brief for the Minister now, and propose Rhys
and Diana attend for Policy.
Would you also be able to attend?
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
el @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
<image001.gif>
Page 214 of 321
I have just found out this morning that the Ministers meeting with Manildra has been
moved to tomorrow, Tuesday 6 September at 4pm
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Hi MS
Please note there has been a further change to the time of this meeting. The meeting is now
Tuesday, 6 September 2016 4:00 PM-4:30 PM.
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: @minister.nsw.gov.au
Page 215 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi MS
Please note there has been a change to the date and time of this meeting. The meeting is now
Tuesday, 6 September 2016 2:00 PM-2:30 PM.
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: s @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Please consider the environment before printing this email
Hi MS
Update to meeting:
Kirsty Beavon- Corporate Affairs Manager, Manildra Group will also attend.
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
Page 216 of 321
T: 02 8574
E: @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Please consider the environment before printing this email
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Tuesday, 30 August 2016 11:49 AM
To: Ministerial Services (ministerialservices@finance.nsw.gov.au)
Cc: 'Elizabeth Verteouris'; Stephanie Matti
Subject: URGENT Meeting briefing request - Meeting with Dick Honan Chairman Manildra Group
to discuss ethanol mandate - due COB Monday, 5 September
Importance: High
Hi MS
Please prepare a briefing for the following meeting and also advise of a Departmental
representative who will attend the meeting (likely Rhys or Matt P):
Meeting with Dick Honan Chairman Manildra Group to discuss ethanol mandate
Wednesday, 7 September 2016 10:00 AM-10:30 AM
Location Level 18, 52 Martin Place, SYDNEY, NSW
More info attached
Due date: COB Monday, 5 September
Kind regards
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Please consider the environment before printing this email
Hi again
Further to the key points for inclusion below we should mention the volume sales
threshold advocated by Manildra, and note the Ministers Office has advised DFSI of their
decision to set it at 900,000 litres per quarter. This is likely to be contentious with Manildra
(too high). That would be a good point at which to then explain the figures (from the
estimates note) about how many retailers and service stations would be captured, what
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
volume of the market would be captured etc.
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Could you please have a second look over it and do some edits and re-submit to me around midday?
(I will be at the MO late morning and will approve when I get back.)
Overall, the briefing needs to be tightened up, more factual and include key facts, dates and figures.
The Budget Estimates note we worked on last week (attached) provides some excellent material in
this regard which is essential for this meeting brief, such as:
1. Key milestone dates for the making of a new Regulation, including re-making existing Reg as a
holding measure to allow more time for the MO to consult over the critical issue of the volume
sales threshold. The Fuel Industry Roundtable on 8 July is a key date and the fact that Manildra
participated is well worth including for the Ministers information.
2. Expected date of commencement of Amendment Act and new Reg, including transitional
arrangements
Page 218 of 321
3. Purpose of meeting is as stated by Mr Honan in his email; ie., declining ethanol sales in NSW
4. Tightening up Im talking about above would include:
a. The whole paragraph starting with significant effort has been directed towards
calibrating the policy settings . . . should be deleted. It is subjective commentary.
b. The Government is confident statements should be moderated. This is departmental
advice and the best we can say is that the ethanol mandate will be more effectively
targeted following commencement of the reforms the actual outcomes are yet to be
tested
c. Manildras submissions could go in Background section
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
d. The graph included as tab A would be more accurately titled as ethanol sales datexxx-
datexxx rather than compliance with the mandate. (You could say compliance is 100% as
everyone holds exemptions.)
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
-----Original Message-----
From: TRIM Administrator [mailto:TRIM-DFS@finance.nsw.gov.au]
Sent: Thursday, 1 September 2016 4:12 PM
To: Lachlan Malloch
Subject: TRIM: DOC16/299522 FTMIN16-2009_Brief. Notification - Action required. For Your Action
If you receive this email as part of a Ministerial, the Date Due to MSU/MES-FT is:
EXPLANATION OF TERMS:
For Your Action = use the TRIM Submit/Approve button to process this document.
Other action message = approach as a ministerial, briefing note, or other.
HELP:
--
This Email Message has been automatically generated by the DFSI TRIM instance
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 220 of 321
LM
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Hi Sonya
Just an FYI to let you know, the meeting with Manildra has been moved to tomorrow
afternoon.
Not intended to put further pressure on you I think the timetable were working to with
the edits youre making should still be OK.
Thanks again,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
el @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Page 221 of 321
Hiya,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Just wanting to check how this is going? I know you had very short notice but just wanting to
check its on track given the meeting has been moved to tomorrow.
Thanks in advance!
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and Innovation
p029372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
cid:image003.jpg@01D1BA54.C4CFB1A0
Yeah we got it in the MS mailbox and TRIM has been updated each time the meeting time has
changed for tomorrow; i.e it being pushed back 2 hours
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Kind regards
Kat
Morning Liz
Just wanted to let you know we received the below email from Lachlan.
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: @minister.nsw.gov.au
P:GPO Box 5341 Sydney NSW 2001
Pleaseconsider the environment before printing this email
The Departmental representatives have just found out a few minutes ago that the
meeting date has been moved.
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Hi MS
Please note there has been a further change to the time of this meeting. The meeting is now
Tuesday, 6 September 2016 4:00 PM-4:30 PM.
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: s @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Please consider the environment before printing this email
Chairman Manildra Group to discuss ethanol mandate - due COB Monday, 5 September
Importance: High
Hi MS
Please note there has been a change to the date and time of this meeting. The meeting is now
Tuesday, 6 September 2016 2:00 PM-2:30 PM.
Sam Oke
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Please consider the environment before printing this email
Hi MS
Update to meeting:
Kirsty Beavon- Corporate Affairs Manager, Manildra Group will also attend.
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Page 225 of 321
Hi MS
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Please prepare a briefing for the following meeting and also advise of a Departmental
representative who will attend the meeting (likely Rhys or Matt P):
Meeting with Dick Honan Chairman Manildra Group to discuss ethanol mandate
Wednesday, 7 September 2016 10:00 AM-10:30 AM
Location Level 18, 52 Martin Place, SYDNEY, NSW
More info attached
Due date: COB Monday, 5 September
Kind regards
Sam Oke
Departmental Liaison Officer
Office of the Hon. Victor Dominello MP
Minister for Innovation and Better Regulation
T: 02 8574
E: @minister.nsw.gov.au
P: GPO Box 5341 Sydney NSW 2001
Please consider the environment before printing this email
Hi Michael
Thx
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
From: Michael Cooper
Sent: Friday, 2 September 2016 11:51 AM
To: Valerie Griswold
Subject: response to Mr Mark McKenzie concerning his allegation against Manildra.DOCX
Val
This is my response to Mr Mark McKenzie in relation to his allegations that Manildra is in breach
of the Biofuels Act. Do to the sensitive nature of this letter, I thought you may like to proof read
and me walk you through it if you want. Although I have not specifically stated it, Manildra is a
biofuel produce and not a petrol supplier as defined by the Biofuels Act therefore, the Act does
not apply to Manildra. If Manildra was supplying ethanol that did not comply then the offence is
committed by the primary wholesales and major retailers
Regards
Michael
Page 227 of 321
PO Box 972
Parramatta NSW 2124
Tel: 02 9895 0111 TTY: 1300 723 404
ABN 81 913 830 179
www.fairtrading.nsw.gov.au
Mr Mark Mckenzie
Chief Operating Officer
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
ACAPMA
56 Berry Street,
North Sydney, NSW, 2060
Dear Mr McKenzie
I refer to your letter to the Minister for Innovation and Better Regulation dated 10 May 2016
concerning allegations that Manildra Group were in breach of the Biofuels Act 2007. I
D
apologise for the length of time it has taken me to reply to you.
As you have indicated in 2007 Mr John Honan appeared before the Economic Development
R
and Infrastructure committee of the Victorian Parliament which was inquiring into Mandatory
Ethanol and Biofuels Target in Victoria. Mr Honan confirmed that at that time the Manildra
Group was producing ethanol using 50% waste and 50% raw product. In 2007 the NSW
Government introduced the Biofuels Act mandating the sale of E10. In 2009 the Act was
AF
amended to ensure that the ethanol used in the blending of E10 was done so in accordance
with a biofuels sustainability standard.
In compliance with the legislation Shoalhaven Starches Pty Ltd (SS) secured a certification
under the Roundtable on Sustainability of Biomaterials (RSB). I note that the first
certification was issued to the SS site in Bomaderry in December 2011 with the audit taking
place between the 19th and 21st of December 2011. I also note that the audit was carried out
T
by four independent auditors who are accredited by the RSB. Stakeholder consultation is a
significant consideration in the RSB certification process and I note that a stakeholder raised
similar issues to yours in that;
Feedstock for Ethanol manufacturing is from starch and grain not waste starch
Response: onsite assessment confirmed the use of wastewater as the only
into the ethanol plant.
Greenhouse Gas Emissions are underestimated based on the definition of waste
feedstocks
Response: GHG assessment included a review of actual data and
assessment raw material inputs
Greenhouse Gas Assessments in 2008 used unverified information
Response: The RSB certification assessment was based on actual data
No ethanol produced would comply with US GHG Standards [RSB Criterion 3c] (at
least 50% lower in emissions of diesel or petrol)
Response: SS are not required to meet the 50% life cycle emission
requirement
RSB defines waste as having no value while high quality starch is definitely a
saleable product
1
Response: This definition is not used by the RSB. The ethanol plant
Page 228 of 321
processes waste streams from the production of high quality starch which
meets the RSB definition
Ethanol subsidy by government to MGC and E10 mandate changes the production
priorities of starch and ethanol products
Response: issue is outside the scope of the assessment
Food Security is impacted by ethanol production from wheat processing. This also
impact the price and supply of grain for food and agriculture
Response: SS operations are not within an area of food insecurity
Each of these issues has been considered by the auditors and in their opinion had no impact
upon SS being issued with a certification in accordance with the RSB standard.
On the 1st and 2nd of July 2014 SS underwent an RSB re-certification audit. Once again as
part of the stakeholder consultation the same issues were raised and after consideration the
auditor issued an RSB certification for the production of ethanol. On the 21st and 23rd of
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
October 2015 SS underwent an RSB certification audit. This audit involved two auditors and
at the conclusion of the audit a certification was issued.
I note that in the first RSB certification document there is a reference to the GHG
assessment considered waste starch and grain sorghum as inputs. I have raised this issue
with senior staff from Manildra and they are unable to say why that assessment was
requested but they confirm that they have not used sorghum or any other raw feedstock in
ethanol produced under an RSB certification. I am also informed that a mass balance
calculation is done as part of the certification process and nothing was detected that would
D
stop the issuing of a certification. I note that there is no legal requirement for biofuel
producers such as SS to secure a GHG certification under the RSB as it is not called up in
NSW legislation.
R
In reviewing the issues you have raised, I agree that Manildra did make submissions before
a Victorian Parliamentary committee 9 years ago and at that time they were producing
ethanol from 50% waste starch and 50% raw feedstock. However, you have not supplied
any information that could be used as evidence in a local court to prove that this practise is
AF
continuing. In contrast it is clear that Manildra through its company Shoalhaven Starches Pty
Ltd has been issued with RSB certification continuously since 2011. Each of the RSB audit
are conducted by between 2 and 4 accredited auditors. As stated previously a stakeholder
has raised the same issues that you have with the auditors and on each occasion the
auditors found that Shoalhaven Starches operation complied with the RSB standard.
I note in your email of 17 August 2016 you state that onus for compliance rests with Manildra
T
Group and that NSW Fair Trading should secure a statutory declaration from Manildra stating
that it is in full compliance with their RSB Certification. From my enquiries into this matter I
am satisfied that the Manildra Group are in compliance with its RSB certification as all the
RSB certificates have been issued have an audit was carried out by independent accredited
auditors. As an authorised investigator under the Biofuels Act 2007, I can only conduct an
investigation if I have reasonable grounds to believe that a breach of the Biofuels Act has
been committed. At this point in time I cannot form that view. Therefore, unless you have
evidence that would be admissible in a court of law, I will not be taking this matter any
further.
Yours sincerely
Name
Title
Date
2
Page 229 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Diana
I have also attached the three docs (brief and tabs A, B, C) in case you can't get in via TRIM.
Many thanks,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Lachlan Malloch
Subject: RE: URGENT - RE: FTMIN16/2009 - Manildra meeting briefing
Hi Sharne
The briefing in TRIM for this has been approved by a policy director, so now ready for
your review.
Lach
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Hiya,
Page 231 of 321
Just wanting to check how this is going? I know you had very short notice but just wanting to
check its on track given the meeting has been moved to tomorrow.
Thanks in advance!
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and Innovation
p029372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
cid:image003.jpg@01D1BA54.C4CFB1A0
Dear Rhys
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
and Manildra Group.
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
el @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
2.50%
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
2.00%
1.50%
1.00%
0.50%
0.00%
3Q 2015 4Q 2015 1Q 2016 2Q 2016
Note - 2Q 2016 figure does not include data for BP Australia (not yet available)
FTMIN16/2009
Page 249 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Attendees Dick Honan, Chairman, Manildra Group
Kirsty Beavon, Corporate Affairs Manager, Manildra Group
Rhys Bollen, Executive Director, Regulatory Policy, DFSI
Diana Holy, A/Director, Regulatory Policy, DFSI
Michael Cooper, Director Consumer Protection, NSW Fair Trading
Key issues
Key messages
D
A new Biofuels Regulation 2016 to support amendments to the Act passed by Parliament
in March is in its final stages of development. The new laws are expected to commence
on 1 January 2017, with a phased enforcement approach by NSW Fair Trading. This will
allow time for newly captured retailers to prepare for compliance and DFSI to develop a
R
new online reporting and exemptions portal to streamline administration of the mandate.
The NSW Government has conducted further detailed consultation with fuel retailers, fuel
AF
industry organisations and the NSW Small Business Commissioner since the publication
of the consultation draft Biofuels Regulation 2016 in May 2016. Key issues under
consideration have included the volume sales threshold and possible inclusion of new
grounds for exemption in the Regulation.
Manildra has made important contributions to the consultation process, including two
written submissions to the Regulatory Impact Statement process (tabs A and B).
T
Manildra also participated in a Fuel Industry Roundtable meeting on 8 July 2016, chaired
by the Commissioner for Fair Trading.
The new laws will better target the ethanol mandate at the retail site level, and are
expected to increase the volume of ethanol fuel sold in NSW. In particular, retailers
captured by the mandate will be required to offer ethanol-blended petrol at all service
stations and make it as accessible to customers as any other type of petrol.
[NOT YET PUBLIC:] The Ministers Office has advised DFSI that the Regulation will
prescribe a volume sales threshold for application of the mandate of 900,000 litres per
quarter. DFSI estimates this threshold will capture 195 retailers, operating or controlling a
total of 989 service stations, and accounting for about 80% of the volume of petrol and
diesel sold in NSW. Of those 989 service stations, 248 will be newly captured by the
mandate, 188 of which have reported that they do not currently sell E10.
FuelCheck was launched on 24 August 2016 and provides consumers with complete and
up to date fuel price comparison information, highlighting the availability and lower price
of ethanol-petrol blended fuels.
Reference
FTMIN16/2009 1
Meeting with Manildra Group Tuesday, 6Page 250 of 321 2016
September
The Minister is awaiting a report by the Independent Pricing and Regulatory Tribunal
(IPART) on its review of wholesale ethanol prices, expected to be issued in late
December 2016.
What are the key issues that will be discussed at the meeting?
Recent volumes of ethanol fuel sales in NSW
The attached graph shows recent sales of ethanol, as a proportion of total petrol
sales, by major retailers and primary wholesalers registered currently under the Act
(tab C).
The minimum ethanol requirement under section 6 of the Act of six percent of all
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
petrol sales has never been met since the introduction of the Act.
In the past four reported quarters, ethanol sales by this group of entities appear
relatively stable at just below three percent.
o prescribe a volume sales threshold of 900,000 litres per quarter, which DFSI
estimates will capture 195 retailers who control or operate 989 service
stations and account for about 80% of all petrol and diesel volume sold in
AF
NSW
o bring an estimated 248 service stations under the ethanol mandate for the first
time, 188 of which do not currently sell E10
o require all service stations that exceed the threshold to make an ethanol-
petrol blend available for sale in a manner that makes it as accessible to a
customer as any other type of petrol available
T
o require the conspicuous display of the price of E10 on price boards where E10
is available
o include appropriate protections for small fuel retail businesses, by prescribing
grounds on which it is not economically viable for the retailer to comply with
the mandate, including:
prohibitive transport costs for the supply of E10
inability to secure finance for infrastructure upgrades
prohibitive infrastructure upgrade costs
o prescribe two sustainability standards (RSB and ISO), compliance with either
one of which is required for ethanol sold to be counted towards the mandate
o likely commence on 1 January 2017, with a phased enforcement approach to
be set out in a Statement of Regulatory Intent by the Commissioner for Fair
Trading. Enforcement of the mandate on currently regulated entities will
commence from 1 January 2017, while newly regulated entities will be
expected to comply from 1 April 2017.
2
Meeting with Manildra Group Tuesday, 6Page 251 of 321 2016
September
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
favourably against regular and premium unleaded petrol products. This is reinforced by
the badging of E10 in FuelCheck as Ethanol 94.
IPART will report in December 2016 on its new role under the amended Biofuels Act to
set a reasonable wholesale price for ethanol and monitor the retail price of E10.
Context
Background
Reform proposals
3
Meeting with Manildra Group Tuesday, 6Page 252 of 321 2016
September
Administrative responsibility for the Biofuels Act and the Biofuels Regulation 2007 was
transferred to the Innovation and Better Regulation portfolio on 1 July 2015. In December
2015, the Minister announced a package of biofuels reforms which included:
new powers for IPART to determine a fair wholesale price for fuel ethanol and review the
retail price of E10
extending the requirement to comply with the biofuels mandate to service stations which
sell three or more types of fuel and which exceed a prescribed sales volume
imposing a requirement that service stations covered by the mandate offer an ethanol-
petrol blended fuel
an enhanced exemptions regime for service stations with the lowest volume sales of
petrol and diesel
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
introducing more objective measures to the reasonable steps test for businesses seeking
an exemption
a community education advertising campaign to improve understanding and awareness
of ethanol
an online fuel price board (FuelCheck) to publish fuel prices at all NSW service stations
in real time.
Amending legislation to bring these reforms into effect was passed by Parliament in March
2016 and received assent on 6 April 2016.
D
Manildra submissions
Manildra made two submissions to the consultation draft Regulatory Impact Statement for
the Biofuels Regulation 2016 which was published in May. Manildra strongly argued that
R
exemptions from meeting the 6% ethanol sales mandate should be restricted to cases of
"genuine financial hardship" only (tabs B and C). Further, the mandate is allegedly not being
met primarily because of poor enforcement and a lax exemptions regime that allows retailers
to avoid making any real effort to comply with the mandate.
AF
Approval
Position
Prepared by: Sonya Thompson, Senior Policy Officer, Regulatory Policy
Endorsed by:
Signature Date
Ministerial and Executive Services
Commissioner
4
Meeting with Manildra Group Tuesday, 6Page 253 of 321 2016
September
Secretary
Ministers Office
Probity advice should be provided on the organisation and the key attendees, and the
lobbyists register (at: http://www.lobbyists.elections.nsw.gov.au/whoisontheregister)
should be checked.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
D
R
AF
T
5
Page 254 of 321
Youre a superstar. Sorry to pester! The meeting was called mid last week so Policy didnt really
have much prep time.
From: Kylie Buckley
Sent: Tuesday, 6 September 2016 7:52 AM
To: Sharne Peake
Subject: Re: FTMIN16/2009 - URGENT meeting brief
I'm nearly at the office. I'll print it for him as soon as I get there.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent from my iPhone
Hi again,
Kerry in Martins office has agreed to expedite this one for signing today can you
please give me an ETA on when we could have it to her? Just so I can give her a
ballpark timeframe and keep her posted J
Thanks
S
From: Sharne Peake
Sent: Tuesday, 6 September 2016 7:45 AM
To: Kylie Buckley
Subject: FTMIN16/2009 - URGENT meeting brief
Hi KB
Minister is meeting with Manildra this arvo at 4pm. The meeting brief will be
coming to the Commissioners office this morning (have just sent for printing). The
Sec will also need to sign off so we need to get it to him asap. Can you please keep
an eye out for this one and prioritise it for signing asap?
Thanks
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and
Innovation
p 02 9372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
Please consider the environment before printing this email
Page 255 of 321
Looks like I should be able to get it to you mid-morning, all going well. As soon as Commissioner
has signed itll be on its way.
From: Sharne Peake
Sent: Tuesday, 6 September 2016 7:50 AM
To: Kerry Thomson
Subject: RE: FTMIN16/2009 - Minister Dominello meeting with Manildra group - briefing
Gotta check with Commissioners office re his availability this morning Ill let you know.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
From: Kerry Thomson
Sent: Tuesday, 6 September 2016 7:50 AM
To: Sharne Peake
Subject: Re: FTMIN16/2009 - Minister Dominello meeting with Manildra group - briefing
We can try and expedite. How soon can you get it to me?
Hi Kerry,
The Ministers office arranged this meeting with Manildra at short notice and we
received the briefing from Policy late yesterday. We expedited our reviews and it is
now with the Commissioner for FT for signing. As Manildra is a key stakeholder, the
Secretary is currently on the sign off tree.
The meeting is this afternoon at 4pm. We will need to get this to the MO asap can
you please confirm whether we can send an advance to the MO or whether
Secretary needs to approve? If he needs to approve, any chance we can try and
expedite the signing on this one?
Thanks in advance.
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and
Innovation
p 02 9372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
Please consider the environment before printing this email
Page 256 of 321
Commissioner has signed we are just reprinting on pink paper and putting together the tabs
and Jason will drop off in your tray shortly J
From: Kerry Thomson
Sent: Tuesday, 6 September 2016 7:50 AM
To: Sharne Peake
Subject: Re: FTMIN16/2009 - Minister Dominello meeting with Manildra group - briefing
We can try and expedite. How soon can you get it to me?
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent from my iPhone
Hi Kerry,
The Ministers office arranged this meeting with Manildra at short notice and we
received the briefing from Policy late yesterday. We expedited our reviews and it is
now with the Commissioner for FT for signing. As Manildra is a key stakeholder, the
Secretary is currently on the sign off tree.
The meeting is this afternoon at 4pm. We will need to get this to the MO asap can
you please confirm whether we can send an advance to the MO or whether
Secretary needs to approve? If he needs to approve, any chance we can try and
expedite the signing on this one?
Thanks in advance.
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and
Innovation
p 02 9372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
Please consider the environment before printing this email
Page 257 of 321
This is now with the Secretary I approved this morning and Commissioner has already signed.
Woohoo!
Thanks for actioning so quickly.
From: Hamish Li
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Monday, 5 September 2016 5:11 PM
To: Sharne Peake
Cc: Wendy Laing
Subject: RE: URGENT - RE: FTMIN16/2009 - Manildra meeting briefing
Importance: High
Hi Sharne - Ive referred this for your urgent second review.
Hamish Li
Advisor, Ministerial Services (Correspondence)
S
From: Lachlan Malloch
Sent: Monday, 5 September 2016 4:06 PM
To: Sharne Peake
Cc: Ministerial Services
Subject: URGENT - RE: FTMIN16/2009 - Manildra meeting briefing
Hi Sharne
The briefing in TRIM for this has been approved by a policy director, so now ready for
your review.
Many thanks for your help sorry for tight turnaround
Lach
J
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Page 258 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hiya,
Just wanting to check how this is going? I know you had very short notice but just wanting to
check its on track given the meeting has been moved to tomorrow.
Thanks in advance!
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and Innovation
p 02 9372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
cid:image003.jpg@01D1BA54.C4CFB1A0
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Page 260 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
established under the Biofuels Act 2007 (the Act).
Date/time/place Tuesday, 6 September 2016, 4 :00pm - to 4:.30 pm, 52 Martin Place,
Sydney
Attendees Mr Dick Honan, Chairman, Manildra Group
Ms Kirsty Beavon, Corporate Affairs Manager, Manildra Group
Mr Rhys Bollen, Executive Director, Regulatory Policy, DFSI
Ms Diana Holy, A/Director, Regulatory Policy, DFSI
Mr Michael Cooper, Director Consumer Protection, NSW Fair Trading
Key issues
D
Key messages
The A new Biofuels Regulation 2016 (the Regulation) is in its final stages of
development.
R
The Regulationto aims to support amendments to the Act passed by Parliament in March
is in its final stages of development. The new laws are expected to commence on 1
October 2016, with a phased enforcement approach by NSW Fair Trading starting from
on 1 January 2017. This will allow time for newly- captured retailers to prepare for
compliance, and DFSI to develop a new online reporting and exemptions portal to
AF
streamline administration of the mandate.
The NSW Government has conducted further detailed consultation with fuel retailers, fuel
industry organisations and the NSW Small Business Commissioner since the publication
of the consultation draft Biofuels Regulation 2016 in May 2016. Key issues under
consideration have included the volume sales threshold and possible inclusion of new
grounds for exemption in the Regulation.
T
Manildra has made important contributions to the consultation process, including two Formatted: List bulleted, Bulleted
written submissions to the Regulatory Impact Statement process (Ttabs A and Tab B). + Level: 1 + Aligned at: 0 cm +
Tab after: 0.65 cm + Indent at:
Manildra also participated in a Fuel Industry Roundtable meeting on 8 July 2016, chaired 0.65 cm
by the Commissioner for Fair Trading.
Formatted: Font: Bold
Formatted: Font: Not Bold
The new laws will better target the ethanol mandate at the retail site level, and are Formatted: List bulleted, Indent:
Left: 0.65 cm
expected to increase the volume of ethanol fuel sold in NSW. In particular, retailers
captured by the mandate will be required to offer ethanol-blended petrol at all service
stations and make it as accessible to customers as any other type of petrol.
[NOT YET PUBLIC:] The Ministers Office has advised DFSI that the Regulation will Formatted: Font: Bold
prescribe a volume sales threshold for application of the mandate of 900,000 litres per
quarter. DFSI estimates this threshold will capture 195 retailers, operating or controlling a
total of 989 service stations, and accounting for about 80 per cent% of the volume of
petrol and diesel sold in NSW. Of those 989 service stations, 248 will be newly captured
by the mandate, 188 of which have reported that they do not currently sell E10.
Reference
FTMIN16/2009 1
Page 261 of 321
FuelCheck was launched on 24 August 2016 and provides consumers with complete and
up- to- date fuel price comparison information, highlighting the availability and lower price
of ethanol-petrol blended fuels.
The Minister is awaiting a report by the Independent Pricing and Regulatory Tribunal
(IPART) on its review of wholesale ethanol prices, expected to be issued in late
December 2016.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Formatted: Indent: Left: 0.65 cm,
No bullets or numbering
What are the key issues that will be discussed at the meeting?
Recent volumes of ethanol fuel sales in NSW
The attached graph shows recent sales of ethanol, as a proportion of total petrol
sales, by major retailers and primary wholesalers registered currently under the Act
(Ttab AC).
The minimum ethanol requirement under section 6 of the Act of six per cent of all
petrol sales has never been met since the introduction of the Act.
D
In the past four reported quarters, ethanol sales by this group of entities appear
relatively stable at just below three per cent.
2
Page 262 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Measures to encourage consumer uptake of ethanol-blended petrol
The Government is funding a major community advertising campaign in support of the
enhanced mandate, which will run in early 2017. The campaign will address common
misconceptions about ethanol and is expected to improve sales of E10.
The NSW Government launched FuelCheck on 24 August 2016, which allows consumers
real-time, mobile-friendly online access to fuel prices at every service station in NSW,
including local area comparison graphics. Such price transparency is expected to benefit
D
E10 sales, by further highlighting the price difference between E10 and premium petrol
products in particular.
NSW Fair Trading has actively enforced accurate disclosure of the E10 Research Octane
Number (RON94) on service station bowsers, allowing consumers to compare E10 more
R
favourably against regular and premium unleaded petrol products. This is reinforced by
the badging of E10 in FuelCheck as Ethanol 94.
IPART will report in December 2016 on its new role under the amended Biofuels Act to
set a reasonable wholesale price for ethanol and monitor the retail price of E10.
AF
3
Page 263 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
D
R
AF
T
4
Page 264 of 321
Context
Background
Reform proposals
Administrative responsibility for the Biofuels Act and the Biofuels Regulation 2007 was
transferred to the Innovation and Better Regulation portfolio on 1 July 2015. In December
2015, the Minister announced a package of biofuels reforms which included:
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
new powers for IPART to determine a fair wholesale price for fuel ethanol and review the
retail price of E10
extending the requirement to comply with the biofuels mandate to service stations which
sell three or more types of fuel and which exceed a prescribed sales volume
imposing a requirement that service stations covered by the mandate offer an ethanol-
petrol blended fuel
an enhanced exemptions regime for service stations with the lowest volume sales of
petrol and diesel
introducing more objective measures to the reasonable steps test for businesses seeking
an exemption
a community education advertising campaign to improve understanding and awareness
D
of ethanol
an online fuel price board (FuelCheck) to publish fuel prices at all NSW service stations
in real time.
R
Formatted: Space Before: 5 pt
Amending legislation to bring these reforms into effect was passed by Parliament in March
2016 and received assent on 6 April 2016.
5
Page 265 of 321
Approval
Position
Prepared by: Sonya Thompson, Senior Policy Officer, Regulatory Policy
Endorsed by: Diana Holy, A/Director, Regulatory Policy
Signature Date
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Ministerial and Executive Services Approved in TRIM 6/9/16
Commissioner
Secretary
Ministers Office
Formatted: Font: Not Bold
Probity and lobbyist results attached (Tab D)
Probity advice should be provided on the organisation and the key attendees, and the
lobbyists register (at: http://www.lobbyists.elections.nsw.gov.au/whoisontheregister)
D
should be checked.
R
AF
T
6
Page 266 of 321
ok
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi all,
MO has just advised the meeting has been brought forward and lengthened. The meeting is now
starting at 3:30 and is scheduled to finish at 4:15.
Thanks
Sharne Peake
A/Senior Advisor Correspondence Services, Ministerial Services
Government and Corporate Services | Department of Finance, Services and Innovation
p029372
e @finance.nsw.gov.au | www.finance.nsw.gov.au
Level 22, McKell Building, 2-24 Rawson Place, Sydney NSW 2000
cid:image003.jpg@01D1BA54.C4CFB1A0
I briefly entertained the idea of coming back to the MO to be present for the Manildra
discussion, but my teams meeting with Anurag (OneGov) re: FuelCheck
enhancements for the biofuels regime took precedence. We made some good
progress.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hope it went well; catch up soon.
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Dear Mr McKenzie
I apologise for the lateness of my response. Please find attached my letter addressing the concerns that
you have raised in relation to the Manildra Group
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Michael,
Yes, you are largely correct. Our concern relates to the fact that we have reason to believe that a significant
portion of Manildras ethanol production is not consistent with Regulation 3A of the NSW Biofuels Act
(2007).
I have to admit being a little miffed about your comments on the national GHG requirement. Such
considerations are irrelevant to the matter we have raised about production compliance with the RSB
Certification (which takes account of the use of natural water resources and food sources for fuel
production) required under Regulation 3A.
Basically, we have reason to believe that Manildra is producing ethanol using virgin feedstock and fresh
Page 269 of 321
water when the certification stipulates waste feedstock and wastewater. Interestingly, the RSB
Certification issued to Manildra actually makes mention of this possibility but admits to being unable to
quantify the proportion of use of same and has therefore issued a limited scope certification on the basis
of waste feedstock and wastewater inputs only.
The net effect is that, if Manildra Group is using virgin feedstocks (or fresh water) then the ethanol
produced in this manner is not compliant with the scope of the RSB Certification and therefore a breach
of Regulation 3A which calls up this requirement.
This is a simple point of compliance with the law. There does not appear to be any room for discretion
along the lines you raised in our conversation and simply being issued with a certification is not sufficient
for compliance if the actual form of production is not consistent with the scope of the certification (i.e.
Goes to intent of the Act for the supply of a sustainable biofuel).
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
As we discussed, we were alerted to this issue as a result of testimony provided to a Victorian
Parliamentary Inquiry in 2007. We have no reason to believe this practice has changed.
We therefore consider it totally unsatisfactory that NSW Fair Trading and enforcement agency of the
NSW Government - has simply taken the word of Manildra that it is now using only waste feedstocks.
At the very least, we would expect that Manildra would have been asked to provide a written statement that
only waste feedstocks are used for the production of ethanol - in full compliance with their RSB
Certification. Ideally such statement would be provided to NSW Fair Trading by way of a Statutory
Declaration.
We believe, however, that a more prudent approach of a Regulator would be to examine Manildras
production over the last 12 months and conduct a mass-balance exercise. Such an exercise would examine
the nature and quantum of production inputs (as evidenced by invoices and other documentation) is
capable of supporting production outputs (i.e. ethanol).
The onus for compliance rests with Manildra Group. The responsibility for enforcement of this Regulation
rests with the NSW Government. We, as a stakeholder in the process have raised a question of compliance
for reasons cited in our letter of May 10.
While we have other material that underpins our request, we believe that the RSB Certification and past
testimony provided to the Victorian Government (as referenced in my letter of 10 May 2016) provides
sufficient grounds for a formal investigation of this matter and do not plan to disclose these additional
materials for reasons explained during our phone call.
In the event that a portion of ethanol production is found to be non-compliant, this volume will need to be
excluded from the market until such time as Manildras supply is wholly compliant with the requirements
of Regulation 3A.
Further, and given it has already been three months since we raised this matter, we would appreciate your
early consideration of this matter and a formal written response to our letter of 10 May 2016 advising the
process that you plan to follow for the investigation of this matter.
Please note that for reasons that will be known to the Ministers office, this issue is very pertinent to the
current NSW Government initiative relating to a requirement for our industry to sell increased volumes of
E10.
As such, it is not an issue that we will drop or treat lightly in the future.
Regards,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Page 270 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
(2007)
Hi Mark
Sorry for not responding sooner. I will re-read my notes and give you ring asap. Just confirming your
concerns that Manildra has secured a RSB Certification in compliance with Section 3A of the Biofuels Act in
which it states that the ethanol produced by Manildra which is the subject of certification comes from
waste starch. I acknowledge that in 2007 Mr John Honan told a Victorian parliamentary committee that at
that time Manildra produced ethanol using 50 percent waste product and 50 percent raw product.
However, I put this allegation to Mr John Honan and he stated that 9 years ago that was in fact Manildra
processes but they no longer use raw product in ethanol production. I have also spoken to Mick Berry the
RSB Certifier who issued the certification. He stated that he based his certification based on information
supplied by Manildra and did not have any reason to doubt the information that was supplied.
You did indicate that you had further documentary proof that Manildra is currently using raw product in its
ethanol production. Can you please send this information to me as it will assist in taking this matter
further
Regards
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi Michael,
I have left yet another message with you at the head office switchboard in Parramatta (been told that you
cant take my call as you are busy).
I am ringing in relation to the email of below which follows on from a letter written to Minister Dominello
on 10 May 2016 about an alleged breach of Regulation 3A of the NSW Biofuels Act (2007).
To date, we have been patient with this process but are getting a bit miffed at the apparent inability of NSW
Fair Trading (and the NSW Government) to respond to what we consider to be a serious issue.
Page 271 of 321
It would be appreciated if you could make contact with me to provide an update on this matter (as per the
email of below) at your earliest convenience.
Regards,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Hi Mark
I know Fair Tradings Compliance and Enforcement team were investigating this matter. Ive
asked Michael Cooper to respond to you directly with an update.
Regards
Matt
Dear Matt,
In our letter we allege that at least 50% of the biofuel being manufactured at the Shoalhaven facility is not
compliant with the RSB Certification issued to the Manildra Group - noting that the RSB Certification
forms the basis of Manildras compliance with the requirements of the Biofuels Act to supply a
sustainable biofuel (i.e. Regulation 3A of the 2007 NSW Biofuels Regulation).
Specifically, we understand that Manildra may be using an average 50% of Virgin agricultural feedstock in
its ethanol manufacturing operations as opposed to the use of waste agricultural feedstocks as stipulated
in their current RSB Certification for the Shoalhaven facility.
The use of virgin agricultural feedstocks in the manufacturing process means that the GHG emissions
benefit previously cited by Minister Dominello in the NSW Parliament in late March 2016 is unlikely to be
correct (i.e. International GHG accounting principles dictate that the use of a virgin feedstock requires
attribution of the embodied emissions associated with the production of that feedstock be assigned to the
fuel process, thereby reducing the quantum of the marginal GH benefits enjoyed by some ethanol
production processes).
Notwithstanding the inherent environmental and sustainability aspects of this issue, of most interest to us
should this observation be proven correct - is that 50% of the ethanol being delivered into the NSW market
is being supplied in breach of the requirements of the NSW Biofuels Act (2007).
Page 272 of 321
We consider this to be a very serious issue given the NSW Governments push for greater sales of ethanol
(with its attendant compliant costs for the fuel retail industry and associated risks to small business
destruction and employment loss in regional NSW) as it indicates that the level of compliant supply is
likely to be insufficient to support growth beyond current observed levels of E10 demand.
We also draw your attention to an apparent inequity here created by the NSW Governments inconsistent
administration of relevant provisions of the NSW Biofuels Act (2007).
On the one hand, our industry is being required to comply with increasing levels of regulation that merely
amount to increased compliance costs for a fuel that the majority of the NSW market does not want to buy
(as proven by more than 8 years of operation of the NSW Biofuels mandate).
On the other hand, the States monopoly biofuels producer - the sole beneficiary of the 2007 Biofuels Act -
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
is apparently being excused from compliance with all key provisions of the Act.
Despite receiving several emails from your office and NSW Fair Trading Officers that ACAPMA would
shortly receive a response to this issue, we have not received a response to our letter of 3 months ago.
In light of the imminent changes to the NSW Biofuels Act foreshadowed by the NSW Government, we
consider this issue to a material consideration to the finalisation of the new Biofuels Regulation and are
therefore seeking an immediate response to the issues raised in our letter of 10 May 2016.
Yours sincerely,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
**********************************************************************************
This email message and any attached files is confidential and intended solely for the use of the
individual or entity to whom it is addressed and may contain information that is privileged,
confidential and/or exempt from disclosure under applicable law. If you have received this email in
error, delete all copies and notify the sender.
l\lk
PO Box972
Parramatta NSW 2124
--
NSW
Fair Tel: 02 9895 0111 TTY: 1300 723 404
ABN 81 913 830 179
Mr Mark Mckenzie
Chief Operating Officer
ACAPMA
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
56 Berry Street,
North Sydney, NSW, 2060
Dear Mr McKenzie
I refer to your letter to the Minister for Innovation and Better Regulation dated 1O May 2016
concerning allegations that Manildra Group (MG) were in breach of the Biofuels Act 2007. I
apologise for the length of time it has taken me to reply to you.
As you have indicated, in 2007 Mr John Honan appeared before the Economic Development
and Infrastructure committee of the Victorian Parliament which was inquiring into Mandatory
Ethanol and Biofuels Target in Victoria. Mr Honan confirmed that at that time the Manildra
Group was producing ethanol using 50% waste and 50% raw product. In 2007 the NSW
Government introduced the Biofuels Act, mandating the sale of E10. In 2009 the Act was
amended to ensure that the ethanol used in the blending of E10 was done so in accordance
with a biofuels sustainability standard.
In compliance with the legislation Shoalhaven Starches Pty Ltd (SS) secured a certification
under the Roundtable on Sustainability of Biomaterials (RSB). I note that the first
certification was issued to the SS site in Bomaderry in December 2011 with the audit taking
place between 19 - 21 December 2011. I also note that the audit was carried out by four
independent auditors who are accredited by the RSB. Stakeholder consultation is a
significant consideration in the RSB certification process. At that time a stakeholder raised
similar issues to those you have raised. The issues are as follows:
Feedstock for ethanol manufacturing is from starch and grain not waste starch
Response: onsite assessment confirmed the use of wastewater as the only
input into the ethanol plant
Greenhouse Gas Emissions (GHG) are underestimated based on the definition of
waste feedstocks
Response: GHG assessment included a review of actual data and an
assessment of raw material inputs
Greenhouse Gas Assessments in 2008 used unverified information
Response: The RSB certification assessment was based on actual data
The ethanol produced by SS would not be in compliance with US GHG Standards
[RSB Criterion 3c] (at least 50% lower in emissions of diesel or petrol)
Response: SS are not required to meet the 50% life cycle emission
requirement
RSB defines waste as having no value while high quality starch is definitely a
saleable product
1
Page 274 of 321
Response: This definition is not used by the RSB. The ethanol plant
processes waste streams from the production of high quality starch which
meets the RSB definition
Ethanol subsidy by government to MGC and E10 mandate changes the production
priorities of starch and ethanol products
Response: issue is outside the scope of the assessment [should we mention
this? If it's out of scope why bring it up]
Food Security is impacted by ethanol production from wheat processing. This also
impact the price and supply of grain for food and agriculture
Response: SS operations are not within an area of food insecurity
Each of these issues was considered by the auditors. In their opinion, the concerns raised
had no impact upon SS being issued with a certification in accordance with the RSB
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
standard.
I note that in the first RSB certification document there is a reference to the 'GHG
assessment considered waste starch and grain sorghum as inputs'. I have raised this issue
with senior staff from Manildra and they are unable to say why that assessment was
requested. They confirmed that they have not used sorghum or any other raw feedstock in
ethanol produced under an RSB certification. I understand that a 'mass balance' calculation
is done as part of the certification process and nothing was detected that would prevent the
issuance of a certification. There is no legal requirement for biofuel producers such as SS to
secure a GHG certification under the RSB as it is not required under NSW legislation.
In your email dated 17 August 2016 you assert that the 'onus for compliance rests with
Manildra Group and that NSW Fair Trading should secure a statutory declaration from
Manildra stating that it is in full compliance with their RSB Certification. From my enquiries
into this matter I am satisfied that the Manildra Group have complied with its RSB
certification - all the RSB certificates have been audited by independent accredited auditors.
As an authorised investigator under the Biofuels Act 2007, I will conduct an investigation if
there are reasonable grounds to believe that a breach of the Biofuels Act has been
committed. At this point in time I am unable to form that view. Therefore, I will not be taking
this matter any further.
Yours sincerely
~~ . ~
Michael Cooper
Director, Consumer Protection
12 September 2016
2
Page 275 of 321
Yes sorry
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Hi
I realise this has gone out. There is a bit on top of page 2 in brackets that should have been deleted. Its not
fatal.
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Subject: RE: Response to letter of 10 May 2016 alleging breach of Regulation 3A of NSW Biofuels Act (2007)
Dear Mr McKenzie
I apologise for the lateness of my response. Please find attached my letter addressing the concerns that
you have raised in relation to the Manildra Group
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
PO Box 972 Parramatta NSW 2124
Hi Michael,
Yes, you are largely correct. Our concern relates to the fact that we have reason to believe that a significant
portion of Manildras ethanol production is not consistent with Regulation 3A of the NSW Biofuels Act
(2007).
I have to admit being a little miffed about your comments on the national GHG requirement. Such
considerations are irrelevant to the matter we have raised about production compliance with the RSB
Certification (which takes account of the use of natural water resources and food sources for fuel
production) required under Regulation 3A.
Basically, we have reason to believe that Manildra is producing ethanol using virgin feedstock and fresh
water when the certification stipulates waste feedstock and wastewater. Interestingly, the RSB
Certification issued to Manildra actually makes mention of this possibility but admits to being unable to
quantify the proportion of use of same and has therefore issued a limited scope certification on the basis
of waste feedstock and wastewater inputs only.
The net effect is that, if Manildra Group is using virgin feedstocks (or fresh water) then the ethanol
produced in this manner is not compliant with the scope of the RSB Certification and therefore a breach
of Regulation 3A which calls up this requirement.
This is a simple point of compliance with the law. There does not appear to be any room for discretion
along the lines you raised in our conversation and simply being issued with a certification is not sufficient
for compliance if the actual form of production is not consistent with the scope of the certification (i.e.
Goes to intent of the Act for the supply of a sustainable biofuel).
We therefore consider it totally unsatisfactory that NSW Fair Trading and enforcement agency of the
NSW Government - has simply taken the word of Manildra that it is now using only waste feedstocks.
At the very least, we would expect that Manildra would have been asked to provide a written statement that
only waste feedstocks are used for the production of ethanol - in full compliance with their RSB
Certification. Ideally such statement would be provided to NSW Fair Trading by way of a Statutory
Declaration.
We believe, however, that a more prudent approach of a Regulator would be to examine Manildras
production over the last 12 months and conduct a mass-balance exercise. Such an exercise would examine
the nature and quantum of production inputs (as evidenced by invoices and other documentation) is
Page 277 of 321
The onus for compliance rests with Manildra Group. The responsibility for enforcement of this Regulation
rests with the NSW Government. We, as a stakeholder in the process have raised a question of compliance
for reasons cited in our letter of May 10.
While we have other material that underpins our request, we believe that the RSB Certification and past
testimony provided to the Victorian Government (as referenced in my letter of 10 May 2016) provides
sufficient grounds for a formal investigation of this matter and do not plan to disclose these additional
materials for reasons explained during our phone call.
In the event that a portion of ethanol production is found to be non-compliant, this volume will need to be
excluded from the market until such time as Manildras supply is wholly compliant with the requirements
of Regulation 3A.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Further, and given it has already been three months since we raised this matter, we would appreciate your
early consideration of this matter and a formal written response to our letter of 10 May 2016 advising the
process that you plan to follow for the investigation of this matter.
Please note that for reasons that will be known to the Ministers office, this issue is very pertinent to the
current NSW Government initiative relating to a requirement for our industry to sell increased volumes of
E10.
As such, it is not an issue that we will drop or treat lightly in the future.
Regards,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Hi Mark
Sorry for not responding sooner. I will re-read my notes and give you ring asap. Just confirming your
concerns that Manildra has secured a RSB Certification in compliance with Section 3A of the Biofuels Act in
which it states that the ethanol produced by Manildra which is the subject of certification comes from
waste starch. I acknowledge that in 2007 Mr John Honan told a Victorian parliamentary committee that at
that time Manildra produced ethanol using 50 percent waste product and 50 percent raw product.
However, I put this allegation to Mr John Honan and he stated that 9 years ago that was in fact Manildra
processes but they no longer use raw product in ethanol production. I have also spoken to Mick Berry the
RSB Certifier who issued the certification. He stated that he based his certification based on information
supplied by Manildra and did not have any reason to doubt the information that was supplied.
Page 278 of 321
You did indicate that you had further documentary proof that Manildra is currently using raw product in its
ethanol production. Can you please send this information to me as it will assist in taking this matter
further
Regards
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
PO Box 972 Parramatta NSW 2124
Hi Michael,
I have left yet another message with you at the head office switchboard in Parramatta (been told that you
cant take my call as you are busy).
I am ringing in relation to the email of below which follows on from a letter written to Minister Dominello
on 10 May 2016 about an alleged breach of Regulation 3A of the NSW Biofuels Act (2007).
To date, we have been patient with this process but are getting a bit miffed at the apparent inability of NSW
Fair Trading (and the NSW Government) to respond to what we consider to be a serious issue.
It would be appreciated if you could make contact with me to provide an update on this matter (as per the
email of below) at your earliest convenience.
Regards,
Mark McKenzie
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
Hi Mark
Page 279 of 321
I know Fair Tradings Compliance and Enforcement team were investigating this matter. Ive
asked Michael Cooper to respond to you directly with an update.
Regards
Matt
Dear Matt,
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
In our letter we allege that at least 50% of the biofuel being manufactured at the Shoalhaven facility is not
compliant with the RSB Certification issued to the Manildra Group - noting that the RSB Certification
forms the basis of Manildras compliance with the requirements of the Biofuels Act to supply a
sustainable biofuel (i.e. Regulation 3A of the 2007 NSW Biofuels Regulation).
Specifically, we understand that Manildra may be using an average 50% of Virgin agricultural feedstock in
its ethanol manufacturing operations as opposed to the use of waste agricultural feedstocks as stipulated
in their current RSB Certification for the Shoalhaven facility.
The use of virgin agricultural feedstocks in the manufacturing process means that the GHG emissions
benefit previously cited by Minister Dominello in the NSW Parliament in late March 2016 is unlikely to be
correct (i.e. International GHG accounting principles dictate that the use of a virgin feedstock requires
attribution of the embodied emissions associated with the production of that feedstock be assigned to the
fuel process, thereby reducing the quantum of the marginal GH benefits enjoyed by some ethanol
production processes).
Notwithstanding the inherent environmental and sustainability aspects of this issue, of most interest to us
should this observation be proven correct - is that 50% of the ethanol being delivered into the NSW market
is being supplied in breach of the requirements of the NSW Biofuels Act (2007).
We consider this to be a very serious issue given the NSW Governments push for greater sales of ethanol
(with its attendant compliant costs for the fuel retail industry and associated risks to small business
destruction and employment loss in regional NSW) as it indicates that the level of compliant supply is
likely to be insufficient to support growth beyond current observed levels of E10 demand.
We also draw your attention to an apparent inequity here created by the NSW Governments inconsistent
administration of relevant provisions of the NSW Biofuels Act (2007).
On the one hand, our industry is being required to comply with increasing levels of regulation that merely
amount to increased compliance costs for a fuel that the majority of the NSW market does not want to buy
(as proven by more than 8 years of operation of the NSW Biofuels mandate).
On the other hand, the States monopoly biofuels producer - the sole beneficiary of the 2007 Biofuels Act -
is apparently being excused from compliance with all key provisions of the Act.
Despite receiving several emails from your office and NSW Fair Trading Officers that ACAPMA would
shortly receive a response to this issue, we have not received a response to our letter of 3 months ago.
In light of the imminent changes to the NSW Biofuels Act foreshadowed by the NSW Government, we
consider this issue to a material consideration to the finalisation of the new Biofuels Regulation and are
therefore seeking an immediate response to the issues raised in our letter of 10 May 2016.
Yours sincerely,
Mark McKenzie
Page 280 of 321
Address Suite 6, Level 12, 56 Berry Street, North Sydney, NSW 2060
T 1300 160 270 | M0447 444 011 | Emarkm@acapma.com.au | W www.acapma.com.au
**********************************************************************************
This email message and any attached files is confidential and intended solely for the use of the
individual or entity to whom it is addressed and may contain information that is privileged,
confidential and/or exempt from disclosure under applicable law. If you have received this email in
error, delete all copies and notify the sender.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
This email is subject to copyright. No part of it should be reproduced, published, communicated or
adapted without the copyright owner's written consent. No employee or agent is authorised to
conclude any binding agreement on behalf of theDepartment of Finance, Services and Innovation
(DFSI) by email without express written confirmation.
Page 281 of 321
Hi Sharne
As noted in this response, the matter was referred to the Expert Panel and the panel will meet
next week (21 September).
As this has already been overlooked for an extended period of time, the response will be
updated to include the outcome of the decision.
Thanks
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Mandy
From: Sharne Peake
Sent: Monday, 5 September 2016 10:07 AM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi C&E
Have come across this matter which is assigned to Ministerial and Executive Services FT and
has not been actioned.
Does this IDFT still need to progress or has it been superseded?
Appreciate your advice.
Thanks
Sharne
From: Michael Cooper
Sent: Monday, 25 July 2016 3:50 PM
To: RML C&E; Lachlan Malloch
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Approved by Dave Byrne
Lachlan
Is this enough
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: David Byrne
Sent: Monday, 25 July 2016 3:09 PM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Approved
Kind Regards
David A Byrne | Director
Investigations, Compliance and Enforcement
NSW Fair Trading | Department of Finance, Services and Innovation
p 02 9895 |m
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Page 282 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Panel of Biofuels. It specifically addresses the issues raised by Mr McKenzie concerning
Manildra. IOut of scope
Can supply the legal advice is you want.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Michael Cooper
Sent: Wednesday, 15 June 2016 8:55 AM
To: Valerie Griswold; RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Val
In light of the MOs letter to Mr McKenzie, I think we can hold off until we have finished our
enquiries
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Valerie Griswold
Sent: Tuesday, 14 June 2016 5:02 PM
To: RML C&E
Cc: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Mick
Does this need to be changed in light of the actions taken by the Minister?
Let me know if we need to discuss.
Regards
V
From: RML C&E
Sent: Friday, 10 June 2016 9:25 AM
To: Valerie Griswold < @finance.nsw.gov.au>
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Page 283 of 321
Hi Val
This is the only one awaiting approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Letter.docx
Thanks
Mandy
From: RML C&E
Sent: Thursday, 2 June 2016 3:18 PM
To: Valerie Griswold
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Val
Forwarded for approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Letter.docx
Thanks
Mandy
From: Michael Cooper
Sent: Monday, 30 May 2016 3:38 PM
To: RML C&E
Subject: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Forwarded for approval
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Page 284 of 321
Jenefer Plummer
From: MES-FT
Sent: Friday, 18 September 2015 3:04 PM
To: MES-FT
Cc: Simon Bechara
Subject: TRIM: FW: HP TRIM Minister's Inwards : IM15/28241 - new reg
Attachments: Email_FW NSW Fuel Ethanol mandate results for Q2, 2015.html; image004.jpg;
image005.jpg; image006.png; Letter to Minister Dominello 18.9.2015.pdf;
image001.png
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Flag Status: Completed
Title: Manildra Group correspondence regarding NSW Fuel Ethanol mandate results for Q2, 2015
Division: Policy
Contact: Simon
Due: Standard
For: Minister
Notes: MO also requests that this is considered at the biofuel expert panel meeting.
JB
For Minister's response. MO also requests that this is considered at the biofuel expert panel meeting.
Title : Manildra Group correspondence regarding NSW Fuel Ethanol mandate results for Q2, 2015
Author : Honan, Mr Dick
Notes :
Related Records :
1
Withheld pending third party review rights
Withheld pending third party review rights
Withheld pending third party review rights
Refuse - information already available to applicant
Refused - Public interest against disclosure
Page 290 of 321
Hi Val
For your approval. Brief and letter saved in TRIM have been amended following the meeting on
21 September.
Thanks
Mandy
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
From: Michael Cooper
Sent: Friday, 23 September 2016 10:45 AM
To: RML C&E
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Briefing and letter amended. Forwarded for approval
Michael Cooper | Director Consumer Protection
Barrington Building 10 Smith Street, Parramatta
6129895 |
From: RML C&E
Sent: Friday, 23 September 2016 8:54 AM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Michael
Is there an update to this one following the meeting?
Thanks
Mandy
From: Michael Cooper
Sent: Monday, 12 September 2016 3:22 PM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Mandy
As you can see in the final sentence of the letter the MO has referred this matter to the Expert
Panel. This matter will have to wait as the panel does not meet until the 21 september
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: RML C&E
Sent: Monday, 12 September 2016 2:54 PM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Michael
Are you able to provide an update for this one?
Thanks
Mandy
From: Michael Cooper
Sent: Tuesday, 6 September 2016 12:07 PM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Page 291 of 321
M
Still current but it needs to be modified
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: RML C&E
Sent: Monday, 5 September 2016 10:22 AM
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Michael Cooper
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Michael
It seems this one has been overlooked in MS. Can you please advise if this one is still current?
Thanks
Mandy
From: Sharne Peake
Sent: Monday, 5 September 2016 10:07 AM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi C&E
Have come across this matter which is assigned to Ministerial and Executive Services FT and
has not been actioned.
Does this IDFT still need to progress or has it been superseded?
Appreciate your advice.
Thanks
Sharne
From: Michael Cooper
Sent: Monday, 25 July 2016 3:50 PM
To: RML C&E; Lachlan Malloch
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Approved by Dave Byrne
Lachlan
Is this enough
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: David Byrne
Sent: Monday, 25 July 2016 3:09 PM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Approved
Kind Regards
David A Byrne | Director
Investigations, Compliance and Enforcement
NSW Fair Trading | Department of Finance, Services and Innovation
Page 292 of 321
p 02 9895 |m
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Dave
Lachlan Malloch called about the progress of this matter, as it was mentioned at the Expert
Panel of Biofuels. It specifically addresses the issues raised by Mr McKenzie concerning
Manildra.Out of scope
Can supply the legal advice is you want.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Michael Cooper
Sent: Wednesday, 15 June 2016 8:55 AM
To: Valerie Griswold; RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Val
In light of the MOs letter to Mr McKenzie, I think we can hold off until we have finished our
enquiries
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Valerie Griswold
Sent: Tuesday, 14 June 2016 5:02 PM
To: RML C&E
Cc: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Mick
Does this need to be changed in light of the actions taken by the Minister?
Let me know if we need to discuss.
Regards
V
From: RML C&E
Sent: Friday, 10 June 2016 9:25 AM
Page 293 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Thursday, 2 June 2016 3:18 PM
To: Valerie Griswold
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Val
Forwarded for approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Letter.docx
Thanks
Mandy
From: Michael Cooper
Sent: Monday, 30 May 2016 3:38 PM
To: RML C&E
Subject: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Forwarded for approval
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Page 294 of 321
Hi Sharne
This response has been amended following the panel meeting on 21 September 2016.
Thanks
Mandy
From: Michael Cooper
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Sent: Friday, 23 September 2016 10:45 AM
To: RML C&E
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Briefing and letter amended. Forwarded for approval
Michael Cooper | Director Consumer Protection
Barrington Building 10 Smith Street, Parramatta
6129895 |
From: RML C&E
Sent: Friday, 23 September 2016 8:54 AM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Michael
Is there an update to this one following the meeting?
Thanks
Mandy
From: Michael Cooper
Sent: Monday, 12 September 2016 3:22 PM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Mandy
As you can see in the final sentence of the letter the MO has referred this matter to the Expert
Panel. This matter will have to wait as the panel does not meet until the 21 september
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: RML C&E
Sent: Monday, 12 September 2016 2:54 PM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Michael
Are you able to provide an update for this one?
Thanks
Mandy
From: Michael Cooper
Sent: Tuesday, 6 September 2016 12:07 PM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
M
Page 295 of 321
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Michael
It seems this one has been overlooked in MS. Can you please advise if this one is still current?
Thanks
Mandy
From: Sharne Peake
Sent: Monday, 5 September 2016 10:07 AM
To: RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi C&E
Have come across this matter which is assigned to Ministerial and Executive Services FT and
has not been actioned.
Does this IDFT still need to progress or has it been superseded?
Appreciate your advice.
Thanks
Sharne
From: Michael Cooper
Sent: Monday, 25 July 2016 3:50 PM
To: RML C&E; Lachlan Malloch
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Approved by Dave Byrne
Lachlan
Is this enough
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: David Byrne
Sent: Monday, 25 July 2016 3:09 PM
To: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Approved
Kind Regards
David A Byrne | Director
Investigations, Compliance and Enforcement
NSW Fair Trading | Department of Finance, Services and Innovation
p 02 9895 |m
Page 296 of 321
e @finance.nsw.gov.au | www.fairtrading.nsw.gov.au
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Lachlan Malloch called about the progress of this matter, as it was mentioned at the Expert
Panel of Biofuels. It specifically addresses the issues raised by Mr McKenzie concerning
Manildra. IOut of scope
Can supply the legal advice is you want.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Michael Cooper
Sent: Wednesday, 15 June 2016 8:55 AM
To: Valerie Griswold; RML C&E
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Val
In light of the MOs letter to Mr McKenzie, I think we can hold off until we have finished our
enquiries
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
From: Valerie Griswold
Sent: Tuesday, 14 June 2016 5:02 PM
To: RML C&E
Cc: Michael Cooper
Subject: RE: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Mick
Does this need to be changed in light of the actions taken by the Minister?
Let me know if we need to discuss.
Regards
V
From: RML C&E
Sent: Friday, 10 June 2016 9:25 AM
To: Valerie Griswold < @finance.nsw.gov.au>
Page 297 of 321
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Val
This is the only one awaiting approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Letter.docx
Thanks
Mandy
From: RML C&E
Sent: Thursday, 2 June 2016 3:18 PM
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
To: Valerie Griswold
Subject: FW: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Hi Val
Forwarded for approval.
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Brief.docx
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT\FTMIN16-1274
- Letter.docx
Thanks
Mandy
From: Michael Cooper
Sent: Monday, 30 May 2016 3:38 PM
To: RML C&E
Subject: RML FTMIN16-1274 - complaint against Manildra group by Mr Mark McKenzie
Forwarded for approval
I:\MinisterialCorrespondence\2016\FTMIN16-1001 to 2000\FTMIN16-1274 IDFT
Michael Cooper
Director Consumer Protection
Compliance & Enforcement Division
NSW Fair Trading | Department of Finance, Services & Innovation
P 6129895 m
Level 4 The Barrington No 10 Smith Street, Parramatta 2124
PO Box 972 Parramatta NSW 2124
Page 298 of 321
At the time of sending this email, the Commissioner-approved briefing and draft
Ministerial response had not yet been signed by the Minister.
Lachlan
Lachlan Malloch
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000
(it)Finance,
Services& Briefing for the Minister
NSW Innovation
GOVERNMENT
Minister for Innovation and Better Regulation
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Analysis Shoalhaven Starches Pty Ltd (Shoalhaven Starches) is part of the Manildra
group of companies which produces ethanol for use in E10 petrol under the Act.
The Act requires ethanol production to comply with the Biofuel Sustainability
Standard produced by the Roundtable on Sustainable Biofuels (RSB). The RSB
certification issued to Shoalhaven Starches has been correctly issued.
Recommendations and Actions
i+ Approved
Reference
FTMIN16/1274 1
Alleged breach of the Biofuels Act 2007 byPage
the 300
Manildra
of 321
Group
Legal Advice
Refused - Conclusive overriding public interest against disclosure
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
Act, however the supply of ethanol under the Act is a matter that the Minister could refer to
the Expert Panel. The outcome of Fair Trading's enquiry was referred to the Expert Panel on
Biofuels on 21 September 2016. The Expert Panel were satisfied that Manildra was not in
breach of its RSB Certification. Mr McKenzie has been informed of the outcome of Fair
Trading's enquiry.
Context
Background
D
Shoalhaven Starches produces medical and food grade ethanol. The ethanol is also used in
E 10 petrol as defined by the Act. The Act defines E 10 as having ethanol that is produced to
comply with a biofuel sustainability standard. Shoalhaven Starches has a current RSB
Certification issued under the standard.
R
In 2009 the requirement for ethanol to be manufactured to the RSB standard was inserted
into the Regulation. In 2011 Shoalhaven Starches was issued its first RSB certification for its
ethanol production.
AF
On 1O May 2016 Mr Mark McKenzie, Chief Executive Officer of ACAPMA, wrote to the
Minister requesting a review of whether the ethanol used by volume fuel sellers regulated
under the Act complies with the sustainability standard prescribed by the Biofuels Regulation
2007. A copy of Mr McKenzie's letter is at Tab A, and the Minister's briefing and response is
at Tab B.
Mr McKenzie also highlighted comments made by Mr John Honan to a Victorian
T
Parliamentary committee in 2007 concerning the use of virgin feedstock in ethanol
production and that the current RSB certification states that only waste starch is used. Mr
McKenzie appears to suggest that the RSB certificate has been incorrectly issued as he
alleges Shoalhaven Starches uses virgin feedstock.
Mr McKenzie has also suggested that his concerns be referred to the Expert Panel on
Biofuels to be reviewed and that an independent auditor be engaged to conduct a review.
Approval
Commissioner ( (o It
Minister's Office
FTMIN16/1274 2
-----------~---
Page 301 of 321
I attended the IPART public consultation as an observer on Tuesday this week, and
would like to share the attached slideshow presented by Cato Jorgensen with you all.
Information released under the Government Information (Public Access) Act 2009 - FA#116 2016-2017
All participants supported the IPART proposals, including Manildra (Peter Stretton),
Houston Kemp (Greg Houston), United Ethanol (Gavin Hughes Dalby plant, Qld),
Biofuels Association (Mark Sutton).
AECOM, on behalf of IPART, has estimated the cost of ethanol production in NSW,
produced from grain for a new entrant, is about 64 cents per litre, which includes
delivery to Sydney for blending.
IPART stated they will set a maximum price for four weeks duration, based on a moving
average of the 15 preceding weeks prices. They are trying to make their method as
transparent as possible, so stakeholders will actually be able to calculate the price
themselves based on publicly available information.
The retail monitoring role of IPART will not only include movements in the price of E10,
but will also include information on consumer choice within the NSW fuel retail
marketplace.
FYI.
Regards,
Lachlan
Lachlan Malloch
Acting Policy Manager, Regulatory Policy
Better Regulation Division | Department of Finance, Services and Innovation
t029338
e @finance.nsw.gov.au
Level 9, McKell Building, 2-24 Rawson Place, NSW 2000