662Petroleum refining

#### 662 Petroleum refining (1) Petroleum refining is the chemical and physical transformation of stabilised crude petroleum oil, which may be supplemented with 1 or more of condensate, tallow, vegetable oil, eligible petroleum feedstocks or other petroleum feedstocks, to produce a range of refined petroleum products through the following processes: (a) the distillation of stabilised crude petroleum oil, condensate, tallow, vegetable oil and other petroleum feedstocks; (b) the adjustment of the molecular weight and structure of hydrocarbons (such as that which occurs through catalytic or hydro‑cracking, steam or catalytic reforming, polymerisation, isomerisation or alkylation); (c) the blending of products from distillation and adjustment of molecular weight and structure to produce Australian and international standard diesel, jet fuel and unleaded petrol; (d) the production of 2 or more of the following refinery products saleable in Australian or international markets: (i) hydrogen; (ii) ethane; (iii) propane; (iv) refinery grade propylene; (v) polymer grade propylene; (vi) liquefied petroleum gas; (vii) butane; (viii) naphtha; (ix) aviation gasoline; (x) before oxygenate blend; (xi) kerosene; (xii) heating oil; (xiii) solvents; (xiv) lubricant base stocks; (xv) leaded petrol; (xvi) waxes; (xvii) bitumen. > Note: Condensate, eligible petroleum feedstocks, stabilised crude petroleum oil and unleaded petrol are defined in regulation 22A. (1A) The activity of petroleum refining only takes place in the application year if: (a) the application is for the amount of the exemption to be worked out under Division 5 of Part 3A (production calculation method) and subclause (2) applies; or (b) the application is for the amount of the exemption to be worked out under Division 5A of Part 3A (electricity use method) and subclause (2A) applies. (2) For the purposes of paragraph (1A)(a), this subclause applies in relation to the application year if: (a) each of the processes mentioned in paragraphs (1)(a) to (d) are conducted within the relevant financial year for the site; and (b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is: (i) for a site that does not meet the criteria specified in subregulation 22ZD(3) for a new entrant site and that is not part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks used within the relevant financial year for the site; or (ii) for a site that does not meet the criteria specified in subregulation 22ZD(3) for a new entrant site and that is part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks used within the relevant financial year for the sites that are part of the activity group; or (ii) for a site that does meet the criteria specified in subregulation 22ZD(3) for a new entrant site—is likely to be equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used within the relevant financial year for the site. > Note: Activity group and relevant financial year are defined in regulation 22A. (2A) For the purposes of paragraph (1A)(b), this subclause applies in relation to the application year if: (a) each of the processes mentioned in paragraphs (1)(a) to (d) are conducted within the application year for the site; and (b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is: (i) for a site that is not part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the site; or (ii) for a site that is part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the sites that are part of the activity group. (3) The processes mentioned in paragraphs (1)(a) to (d) are not required to be conducted for every product mentioned in paragraphs (1)(c) and (d) for the activity of petroleum refining to occur in the application year. (4) Petroleum refining is specified as an emissions‑intensive trade‑exposed activity. (5) For this Part: > application year, for an application under subsection 46A(1) of the Act, means the year for which the application is made for under subsection 46A(1) of the Act.