Labor will again seek to remove the ability of Australia's green bank to invest in fossil fuel technology.
The federal government has redrafted rules to expand the remit of the Australian Renewable Energy Agency after its first attempt was quashed by Labor and the Greens.
The regulations allow ARENA to invest in low emissions technologies including carbon capture and storage and hydrogen made with the use of fossil-fuel generated energy.
ARENA can still make its own investment decision based on merit.
Ahead of parliament sitting on Tuesday, the Labor caucus on Monday decided it would move another disallowance motion.
However, the motion would be more tightly worded than the previous one, only dealing with a section on carbon capture and storage and hydrogen made using fossil fuels.
Pro-coal Labor MP Joel Fitzgibbon argues his colleagues should support the government's position.
Labor will need cross bench support to be successful in the Senate.
Opposition climate spokesman Chris Bowen said the government's regulations ran contrary to the object of ARENA which was to "improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia".
"Experts say that funding other technologies would be inconsistent with the object of the Act, and would likely be subject to legal challenge," Mr Bowen said.
The Greens also plan their own version of the disallowance motion, which goes further than Labor's.
"Angus Taylor's crusade to spend more public dollars on coal and gas is as shambolic as it is reckless," Greens leader Adam Bandt said.
Mr Taylor told AAP the change would allow ARENA to support technologies that can reduce emissions across all sectors of the economy.
"Getting new, low emissions technologies to economic parity as soon as possible is the only way to reduce emissions without imposing new costs on households, businesses or the economy," he said.
The minister said the changes had the support of the agency itself, as well as groups such as the Business Council, National Farmers Federation, ClimateWorks Australia and the Investor Group for Climate Change.
It is unclear when the motions will be moved.
Australian Associated Press