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The Biofuel bill has been passed into law by parliament though the opposition is now questioning how useful it will be.
The government aims to increase the amount of biofuel such as dairy and beef by-products to power motor vehicles.
The bill passed with a 20 vote majority and means biofuels will have to make up 0.5% of oil companies' sales this year.
But National says despite claims it will mean less greenhouse gas emissions, there's no evidence to show that it will have any positive effect.
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