By Karen Bong
KUCHING, Nov 11: The Distribution of Gas (Amendment) Bill, 2024 seeks to establish a comprehensive legal framework to regulate the distribution of hydrogen generated in Sarawak, including hydrogen produced, acquired, or imported into the State.
The bill covers the generation, storage, transportation, distribution, and delivery of hydrogen within Sarawak, as well as its export.
Minister of Utility and Telecommunication Dato Sri Julaihi Narawi highlighted that, while federal regulations address various gas safety aspects, a comprehensive review of the Sarawak Distribution of Gas Ordinance 2016 is essential to address hydrogen’s unique characteristics.
“This review empowers the Sarawak Cabinet to implement regulations covering critical safety considerations, such as flammability, storage pressures, and risk of leaks.
“As hydrogen-related technology advances, ensuring safe generation, storage, transportation, and use is vital,” he stated while presenting the amendment bill in the august House today.
A key feature of the bill is the expansion of the definition of ‘gas’ in the Principal Ordinance to include hydrogen, allowing for its specific regulation. A new Part IVA of the Ordinance will be introduced to govern hydrogen-related activities.
The Minister responsible for this part will be the one overseeing energy and environmental sustainability, and the administration will be led by a designated regulator, supported by appointed officers.
The regulator will have the authority to issue licenses for hydrogen-related activities, including sales, retail, and usage in various forms—as a fuel for transportation, electricity generation, and industrial processes. It will also promote economic growth within Sarawak’s hydrogen industry, encourage investments, and enhance potential for hydrogen exports.
The amendment bill also introduces new penalties for unauthorised hydrogen-related activities. Any unlicensed generation, storage, distribution, or use of hydrogen will constitute an offence, punishable by fines ranging from RM500,000 to RM1 million and/or imprisonment for up to five years.
Additionally, the director or regulator is empowered to impose financial penalties, recoverable as civil debts, with proceeds directed to the State Consolidated Fund. Non-compliance with the Ordinance or its regulations could incur penalties up to RM20 million, with repeat offences subject to a tenfold increase.
Furthermore, the amendment grants the Sarawak Cabinet authority to impose State-specific rates, levies, taxes, or charges on hydrogen-related activities, including feedstock imports, facility operations, sales, exports, distribution, and transportation.
New provisions also extend enforcement authority to the regulator and grant protections to the regulator and appointed officers, similar to those provided to directors or authorised persons.
“All the matters covered by the amendments are ancillary or subsidiary to the legislative powers on the distribution of gas conferred on the Sarawak Legislative Assembly by the Borneo States (Legislative Powers) Order, 1963 made by the Yang di-Pertuan Agong pursuant to Article 95C of the Federal Constitution,” Julaihi emphasised.
With this amendment, he said the Principal Ordinance will support Sarawak’s clean energy transition by enabling hydrogen development, generation, distribution, and usage.
“This empowers Sarawak to regulate hydrogen activities, demonstrating our commitment to advancing the hydrogen economy and establishing a transparent, investor-friendly regulatory framework to develop hydrogen and related clean energy industries in Sarawak,” he concluded. — DayakDaily
