RFS legislation

Legislation for the Renewable Fuel Scheme

This page explains the legal framework for the Renewable Fuel Scheme (RFS). The NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW) develops this framework. 

It includes: 

  • Electricity Supply Act 1995 (the Act)
  • Electricity Supply (General) Regulation 2014 (the Regulation)
  • Renewable Fuel Scheme Rule of 2024 (RFS Rule).

The RFS Rule is in draft stage.

See the RFS rule and changes topic for more information. 

The Act

The Electricity Supply Act 1995 (the Act) established the RFS under Electricity Supply Act 1995 No 94 - NSW Legislation.

Schedule 4A, Part 3, Division 1 of the Act sets out its legal framework. This includes IPART’s functions and responsibilities as Scheme Administrator and Scheme Regulator.

The Regulation

The Electricity Supply (General) Regulation 2014 (the Regulation) supports the Act. It has details about the core functions of the Scheme Administrator and the Scheme Regulator. Part 7A of the Regulation sets out the RFS's annual green hydrogen target. 

Amendments to the RFS legislation

The NSW Government introduced amendments in NSW Parliament in October 2025 to both the Act and the Regulation. These amendments align the RFS with the anticipated start to green hydrogen production in NSW.

 The key changes include:

  • changing the RFS starting year to 2027
  • removing the 2024, 2025 and 2026 targets and penalty rates
  • amending the 2027 target from 1,780,000 to 180,000 gigajoules.

These changes remove scheme participants’ obligations for the 2024, 2025 and 2026 compliance periods. We will publish the updated key dates for scheme participants once the new legislation is in effect.

 Further updates will be published on the NSW Climate and Energy Action website soon.

Updates

NSW DCCEEW is currently investigating options to expand the RFS to include other renewable fuels.  Check our website regularly for updates.  You can also visit the NSW Climate and Energy Action website.