NZ – Parliament passes biofuel bill

Parliament last night passed legislation requiring oil companies to supply biofuel at a fixed percentage of their total sales.

They have to start supplying it in October this year at 0.5 percent, rising to 2.5 percent by 2012.

Decisions about which type of biofuel is supplied, how much of it is blended with fossil fuels and where it comes from will be up to the industry.

Energy Minister David Parker said during the third reading of the Biofuel Bill that the alternative fuels would have to be sustainable.

“We know all biofuels are not equal and sustainability is under increasing scrutiny,” he said.

“But because some biofuels are not good doesn’t mean all are bad.”