The crossbench is pushing the government to fulfil an election promise to protect underground water resources from fracking.
Put forward by independent MP Sophie Scamps and the Greens, the bill would ensure all gas fracking projects - such as the Beetaloo Basin under consideration in the Northern Territory - are assessed by the federal Environment Minister, under the water trigger legislation.
Although the water trigger already exists, it only covers coal mines and coal seam gas projects, but does not include fracking or unconventional gas.
Dr Scamps said with the imminent threat of drought, urgent action was needed to protect water resources from "potentially destructive" unconventional gas fracking.
"This loophole is dangerous and could see projects proceed that have the potential to devastate our scarce water sources," Dr Scamps said.
"We know that it will impact our environment, we know it'll impact farmers and we know it will impact communities trying to get drinking water."
Lock the Gate spokesman and Southern Highlands farmer Peter Martin said if water resources were destroyed landholders would be left with nothing.
"Water is the most valuable commodity on the face of the earth - people think that there is an endless amount of it coming out of the sky, but in reality it's a circular system," Mr Martin said.
"Fracking has done indescribable damage around the world to water systems, and we can't allow it to be repeated here.
"Pastoralists depended entirely on the quality of the water that comes out of the ground to feed their cattle."
Greens Senator Sarah Hanson-Young said the government had previously promised to make the change by the end of this year in a Senate inquiry report six months ago.
Environment Minister Tanya Plibersek said Labor intended to expand the water trigger to include all forms of non-conventional gas as part of its promised environmental law overhaul.
However, the minister made it clear the changes would be made according to Labor's timetable and not the crossbench's demands.
"Consultation on our draft laws begins this month, we would welcome support, across party lines, to expedite our strong new laws through the Parliament next year," Ms Plibersek said.
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