Document ID: chunk:federal_register_of_legislation:F2023C00357:reg:23
Version: federal_register_of_legislation:F2023C00357
Segment Type: reg
Provision Reference: reg 23
Character Range: 19557–21715

23  Designated quantity—circumstances impacting MSO entity at commencement
 (1) If the Secretary is satisfied that all of the following apply, the designated quantity for each MSO product calculated under section 21 may be reduced by no more than the amount calculated under subsection (2):
 (a) the designated quantity is to apply in a period before 1 July 2025;
 (b) the entity has taken all reasonable steps since the commencement of this section to prepare for meeting the MSO;
 (c) the entity will be unable to meet the MSO if calculated under section 21 because:
 (i) the storage owned, leased or otherwise available for the entity to use for one or more MSO products is unable to hold sufficient MSO products to meet the MSO; and
 (ii) after market testing by the entity, there are no cost effective options for the entity to use section 24 arrangements to meet its obligations;
 (d) the MSO compliance plan for the entity provides a credible path to compliance within the next 2 years;
 (e) evidence has been provided to the Secretary to support each of the above paragraphs;
 (f) the entity has provided information to the Secretary on the prices paid, or offered to it, for section 24 arrangements;
 (g) if the designated quantity is to apply before 1 July 2024—the entity has made a written request to the Secretary for this section to apply on or before 28 February 2023;
 (h) if the designated quantity is to apply on or after 1 July 2024—a request for this section to apply was included in the advice provided for subsection 16(1) of the Act.
 (2) The amount is:
 (a) if the Secretary is satisfied that the entity has given a credible commitment to construct additional storage infrastructure to enable the entity to comply with the MSO—25% of the amount calculated under section 21, rounded to the nearest megalitre; or
 (b) otherwise, the lesser of:
            (i) 25% of the amount calculated under section 21, rounded to the nearest megalitre; and
            (ii) the following amounts for each MSO product:
                (A) gasoline—15 megalitres;
                (B) diesel—15 megalitres;
                (C) kerosene—15 megalitres.