BUNDABERG MP Leanne Donaldson says the new laws for ethanol-blended petrol and bio-based diesel will boost regional jobs.
Queensland Parliament passed legislation last week which included an initial 3% ethanol mandate for petrol and a 0.5% bio-based diesel mandate with both due to start on January 1, 2017.
Ms Donaldson said the new mandates would help Queensland transition to a clean energy economy, grow the biofuels and bio-manufacturing sectors, and fuel jobs growth, especially in regional Queensland.
"Queensland has a natural advantage with its tropical climate, world-class research and development capability and close proximity to the growing Asian market," Ms Donaldson said.
"In practical terms, the mandate will require E10 to make up 30% of regular petrol sales in Queensland.
However, RACQ says the State Government's decision to introduce an ethanol mandate could lead to many motorists being unable to buy regular unleaded fuel (ULP) at their local service station.
RACQ executive manager public policy Michael Roth said the motoring body supported the previously proposed increase to 2% but warned this legislation, and Katter Australia Party amendments, could cost motorists dearly.
"This mandate is too high and could force fuel stations to completely remove regular ULP, as we have seen in parts of New South Wales," he said.
"We estimate up to 15% of vehicles in Queensland are not compatible with E10 and if regular unleaded is unavailable they'll be forced to pay extra for premium unleaded, at 12 cents per litre more than regular ULP."
Ms Donaldson said the State Government would undertake a comprehensive public education campaign ahead of the mandate's planned start date.
Further information is available at www.dews.qld.gov.au.