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CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer and Copyright Details
Ozone Protection Amendment Bill
1998
Date Introduced: 9 December 1998
House: Senate
Portfolio: Environment and Heritage
Commencement: On Royal Assent
The Bill will
amend the Ozone Protection Act 1989 (the Act) to:
-
- ensure that separate authorisation be provided for
manufacturing, importing and exporting activities when issuing a
controlled substances licence
-
- allow conditions to be attached to a licence relating to the
import, export or manufacture of hydrochloroflurocarbons
-
- update the Schedules of the Act in accordance with
international developments, and
-
- narrow the exemption for refrigerated transport containers
which contain controlled substances so that only their import, and
not their manufacture, is permitted in Australia.
The ozone layer
The earth's atmosphere, which can be thought of
as a thin skin surrounding the globe, is composed of three distinct
layers comprising the troposphere (0 to 15km), the stratosphere (15
to 50km) and the mesosphere (50 to 70km). The ozone layer consists
of a layer rich in ozone (O3) molecules contained in a
wide band within the stratosphere some 35 to 40km above the earth's
surface.
The ozone layer in the stratosphere is
particularly important to human existence as it shields the globe
against various wavelengths of ultraviolet (UV) light that can
induce skin cancer and retina damage in humans and is also
dangerous to many other life forms. It is formed by the action of
UV radiation on molecules of oxygen (O2). Once formed,
ozone absorbs UV.
In an unmodified atmosphere (similar to what
existed in pre-industrial times), ozone was almost non-existent in
the troposphere, but reached a much higher concentration in the
stratosphere. Stratospheric ozone started forming about 3000
million years ago as a result of the release of oxygen into the
atmosphere by living things-a by-product of photosynthesis of
millions of single cells in the sea.(1) Ozone now also occurs
within certain sections of the troposphere, dominantly within
high-density urban and large city environments. The ozone in the
troposphere does not have any beneficial attributes as it does in
the stratosphere. On the contrary, along with many other pollutants
such as nitrous and sulphur dioxides and various forms of
particulate matter, the ozone in the troposphere creates serious
environmental and health related problems. Within city smog, ozone
forms from the joining of atomic oxygen given off with the
breakdown of nitrous oxide with free oxygen molecules. It is a
poisonous gas, and although only constituting a fraction of
designated greenhouse gases, ozone is a particularly potent
greenhouse gas. (An increase in greenhouse gases results in
increased retention of radiative energy, increasing global warming
or the 'greenhouse effect').
Thinning of the ozone layer
The ozone in the stratosphere, known as the
ozone layer, appears to have been declining since about 1960. But
ozone loss has become more rapid since about 1978. The reduction is
greatest above the Polar Regions, especially Antarctica. The
decline is not constant, being greatest at the beginning of spring,
as the sun first appears after the long, dark Antarctic winter.
Although the result is called a 'hole', it is rather a fall in
concentration of stratospheric ozone gas.(2)
Naturally occurring substances and emissions
such as sulphates and chlorine given off during volcanic eruptions
are responsible in part for ozone destruction in the ozone layer.
Large volcanoes can spew a huge volume of ozone depleting gases
from below ground high into the atmosphere.
However, it is human made gases, principally
chlorofluocarbons (CFCs) and halons, following eventual escape into
the stratosphere which are particularly destructive of the ozone
layer. These CFCs contain chlorine and the halons contain bromine.
Chlorine and bromine attack ozone and break it down. The process is
very destructive because a catalytic process is involved leading to
one chlorine atom being responsible for the destruction of up to
100 000 ozone molecules.(3)
CFCs were found to be useful for a variety of
industrial applications. They are usually referred to by a number
(eg CFC-11 was a particularly common one), and there are many
different types. They were widely used as coolants in refrigeration
and air-conditioning equipment, being components of the compressed
gas that is pumped around in the tubes in the refrigerator or air
conditioner unit, carrying heat from within the fridge or car to
the outside. CFCs were also widely used in the manufacture of
foam.
Other common industrial solvents such as carbon
tetrachloride (CCl4) and methylchloroform
(CH3CCl3) can also enter the stratosphere and
contribute to the chlorine load. Bromine too can participate in
reactions that break down ozone. Compounds containing bromine have
industrial applications and are used in some fire extinguishers.
Methyl bromide (CH3Br) is widely used in pest control
and soil treatment and has recently been identified as another
important ozone-depleting compound.
International Legal Framework Concerning
Depletion of the Ozone Layer
The Vienna Convention for the Protection of
the Ozone Layer and the Montreal Protocol on Substances
that Deplete the Ozone Layer provide an international legal
framework for addressing concerns regarding the adverse impact of
certain substances on the ozone layer.
The Convention was agreed to in March 1985 and
has been ratified by 165 countries including Australia. The
Montreal Protocol, finalised in September 1987 and ratified by
Australia on 19 May 1989, established a mandatory timetable for the
phase out of ozone depleting substances. The main gases of concern
when the Montreal Protocol was agreed to were CFCs and halons. The
result was that the Montreal Protocol dealt with the reduction in
use of five CFCs and a freeze on the consumption of three halons.
When the Montreal Protocol was signed it was expected that a range
of CFC substitutes would be readily available. However, some of
these, such as the hydrofluorocarbons (HCFCs), while less damaging
than CFCs, still result in the destruction of ozone. Accordingly, a
phase out timetable for HCFCs was introduced in the 1990 London
Amendment to the Montreal Protocol. The 1992 Copenhagen Amendment
amended the Montreal Protocol to set phase out targets for methyl
bromide. Currently the Montreal Protocol requires all developed
countries to cease bulk consumption of methyl bromide and HCFCs by
2005 and 2020 respectively.
Under Article 4 of the Montreal Protocol, ozone
depleting substances are available for trade only amongst those
nations that are party to the Protocol. Presently chlorofluocarbons
(CFCs), halons, carbon tetrachloride and methyl chloroform are
covered by Article 4 trade measures. Recent amendments to the
Montreal Protocol (17 September 1997), require parties who accede
to it to add the chemical methyl bromide to the existing Article 4
trade measures.
Ozone Protection Act
1989
To meet Australia's obligations under the
Vienna Convention for the Protection of the Ozone Layer
and the Montreal Protocol, the Commonwealth passed the Ozone
Protection Act 1989 ('the Act'), which was significantly amended by
the Ozone Protection Amendment Act 1995. This
legislation:
-
- prohibits the import, export or manufacture of CFCs, halons,
carbon tetrachloride, methyl chloroform and
hydrobromochlorofluorocarbons (HBCFs) from 1 January 1996 without
an essential uses or used-substance licence
-
- established a system of controlled substances licences and
reporting requirements for the import, export or manufacture of
HCFCs and methyl bromide
-
- introduced two-yearly administrative fees for licences with the
fees set under the Ozone Protection Regulations
-
- established an Ozone Protection Trust Fund to allow revenue
from the licensing schemes to be directed towards the cost of its
administration, and industry awareness programs for the phase-out
of HCFCs and methyl bromide.(4)
Pursuant to amendments to the Protocol, all
licences originally granted under the Act were cancelled on 1
January 1996 and new licences were granted.(5)
Current Status of Australia's Phase Out of HCFCs and
Methyl Bromide
Australia achieved a total phase out of CFCs,
carbon tetrachloride and methyl chloroform and
hydrobromofluorcarbons in 1995. Halons were phased out in 1992, a
year ahead of Montreal Protocol requirements. In regard to HCFCs
and methyl bromide, Australia froze consumption of HCFCs from 1
January 1996 to 1989 levels and the consumption of methyl bromide
from 1 January 1995 to 1991 levels.
As noted in the Second Reading Speech,
Australia's efforts were formally recognised in 1997 through the
award of a Certificate of Appreciation to the Australian Government
by the United Nations Environment Program in a ceremony to mark the
10th anniversary of the Montreal Protocol.
Schedule 1-Amendment of the
Ozone Protection Act 1989
Item 1 (consequential to
Item 5) amends the definition of 'controlled
substances licence' from one which allows the licensee to
'import, export and manufacture HCFCs or methyl bromide'
(emphasis added) to one which permits separate authorisation for
the processes of manufacture, importation and export control.
Item 2 amends the definition of
'essential uses licence' from one that allows 'the
licensee to import, export or manufacture' specific substances for
essential use to a definition that makes clear that these
activities can be separately authorised as set out in section
13A(3) of the Act.
Item 4 amends the definition of
'used substances licence' from one that 'allows the
licensee to import or export' certain substances to a definition
that makes clear that these activities can be separately authorised
as set out in section 13A(4) of the Act.
Item 5 repeals current
subsection 13A(2), which states that 'the controlled substance
licence allows the licensee to manufacture, import and
export HCFCs or methyl bromide' (emphasis added). In other words,
subsection 13A(2) currently grants an automatic right to
manufacture HCFCs or methyl bromide if one has an import or export
licence (currently no manufacture of these substances takes place
in Australia). This definition is replaced with one that makes
clear that the activities of manufacturing, importing or exporting
must be separately authorised by the licence.
The Explanatory Memorandum provides detailed
reasons for this amendment, including:
-
- it will align section 13A(2) with section 13(1) which states
that one needs a licence to manufacture, import OR export the
controlled substances
-
- as there are currently no manufacturing facilities in Australia
for HCFCs or methyl bromide, the amendment will ensure that the
Government controls the establishment of such facilities ensuring
proper assessment of their impact on the community
-
- tighter control on any future manufacturing will make it more
certain Australia will reach agreed targets for phase out of the
controlled substances.
Item 7 allows conditions to be
attached to a licence relating to the import, export or manufacture
of HCFCs.
Currently, HCFC is the only substance regulated
by the Act upon which the Minister may not impose a condition
restricting the quantity imported, exported or manufactured. The
reason for this exceptional status was that HCFCs in certain
circumstances become subject to import limitation through a quota
system. In 1997, Australia exceeded its country cap for the import,
export or manufacture of HCFCs, triggering the quota system that
began on 1 January 1999. Quotas are allocated for a period of two
years and generally quota allocation will be based on licensee
activity in the penultimate calender year prior to the new quota
period. Therefore, it would be in the commercial interests of all
licensees to import their quota in the first year of the quota
period. Concerns have been raised that this would 'cause an
irregular cyclical pattern phase out program for HCFCs', and the
proposed amendment seeks to allay these concerns.(6)
(It should be noted that as the other reasons
provided in the Explanatory Memorandum for this amendment are
linked to licensee activity in 1998, those reasons are now
redundant).
Item 10 repeals sections 42 and
43 of the Act relating to import and export of 'scheduled
substances' (specific substances listed in the Act's schedules), as
these duplicate the effect of subsections 18(2) and (3).
Item 11 allows the Minister to
delegate to a Senior Executive Service officer the power to require
an applicant for a licence to give further information. (A range of
other powers is currently delegated to a SES officer pursuant to
section 76A.)
Item 12 updates the Act's
Schedules relating to the Montreal Protocol in accordance with
adjustment agreed to by Parties in 1995 and 1997. The amendments
generally relate to production and consumption levels of controlled
substances, including methyl bromide, and establishment of relevant
licensing systems (which Australia already has).
Item 13 amends Schedule 4 of
the Act so that an exemption regarding import and manufacture of
refrigerated transport containers containing CFCs is narrowed to
only apply to their import. This proposed amendment acknowledges
that whilst Australia does not manufacture CFC-dependent transport
containers, the global shipping industry still relies to some
extent on the existing fleet of these containers.
The Explanatory Memorandum states that the
amendments reflect agreed solutions to issues encountered by
industry, government and non-government environmental stakeholders
in processing Australia's phase out of ozone depleting
substances.(7)
The drafters of the Explanatory Memorandum are
to be commended for the very useful detail provided concerning the
background and development of the key amendments.
-
- Australian Academy of Science 1994, Environmental
Sciences, Canberra, pp. 209-210.
- Ibid., p. 211.
- Ibid., p. 213.
- Department of the Environment, Sport and Territories,
Annual Report 1995-96, AGPS, Canberra.
- Ibid.
- Explanatory Memorandum, Ozone Protection Amendment
Bill 1998, p. 19.
- Explanatory Memorandum, Ozone Protection Amendment
Bill 1998, pp. 12-13, p. 25.
Krysti Guest and Michael Roarty
27 January 1999
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ISSN 1328-8091
© Commonwealth of Australia 1999
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