RENEWABLE
TRANSPORT FUEL
  OBLIGATION
   Catherine Burke
       Partner
  Energy and Projects


         www.martineau-uk....
Introduction


•   The obligation
•   Administration
•   European targets
•   Sustainability criteria




                ...
Legislation


•   Energy Act 2004
•   The Renewable Transport Fuel Obligations
    Order 2007
    – Came into force 27 Oct...
The Obligation
•   Imposed on:
    – every transport fuel supplier who in an “obligation period” [15th
      April – 14th ...
The Obligation (2)


•   For each period 15th April to 14th April (“specified
    period”) produce to RFA, by the followin...
The Obligation (3)
“specified amount”

•   15th April 2008 – 14th April 2009
    – 2.5641% (volume)


•   15th April 2009 ...
Administration


•   The Office of the Renewable Fuels Agency
•   RTF Accounts
    – Obligatory accounts
    – Optional ac...
RTF Certificates


•   Application by a supplier
•   Issued by the RFA
•   Certificate covers each litre of fuel
•   Issue...
Discharging the Obligation
•   RFA notifies supplier of
    – amount of renewable fuel which should have been
      suppli...
Re-cycling buy-out payments


•   Buy-out fund is allocated amongst complying
    suppliers




                        ww...
Civil Penalties


•   Failure to apply for an account within 28 days
•   Failure to produce RFT certificate
•   Payment of...
European Targets


•   Sustainability concerns
•   10% share of biofuels in transport fuels by 2020
•   5% by 2015
•   40%...
Sustainability criteria


•   Biofuels must save at least 45% of GHG
    emissions compared to fossil fuels
•   And 60% fr...
Catherine Burke

        Tel: 0870 763 1552
catherine.burke@martineau-uk.com




          www.martineau-uk.com
       E: ...
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Catherine Burke Rtfo

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Biofuels Seminar
Joint Event with EnviroInnovate at the Birmingham City University Technology Innovation Centre
5th November 2008

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Catherine Burke Rtfo

  1. 1. RENEWABLE TRANSPORT FUEL OBLIGATION Catherine Burke Partner Energy and Projects www.martineau-uk.com E: lawyers@martineau-uk.com
  2. 2. Introduction • The obligation • Administration • European targets • Sustainability criteria www.martineau-uk.com www.martineau-johnson.co.uk
  3. 3. Legislation • Energy Act 2004 • The Renewable Transport Fuel Obligations Order 2007 – Came into force 27 October 2007 www.martineau-uk.com www.martineau-johnson.co.uk
  4. 4. The Obligation • Imposed on: – every transport fuel supplier who in an “obligation period” [15th April – 14th April] owns hydrocarbon oil on 5th October (or next working day)  supplies that oil at or for delivery to places in the UK  • Does not apply to a “non-obligated supplier” – one which supplies less than 450,000 litres • Deduction for smaller supplier – less than 10m litres • What counts? – Fuel for use in road vehicles – Certain descriptions – biodiesel, biodiesel component of bioblend, bioethanol, natural road fuel gas • Person applying must own the fuel www.martineau-uk.com www.martineau-johnson.co.uk
  5. 5. The Obligation (2) • For each period 15th April to 14th April (“specified period”) produce to RFA, by the following 5th October (“specified date”) RTF certificates (“evidence”) which – Is of the specified form and – Shows that the “specified amount” of renewable transport fuel was supplied at or for delivery in the UK www.martineau-uk.com www.martineau-johnson.co.uk
  6. 6. The Obligation (3) “specified amount” • 15th April 2008 – 14th April 2009 – 2.5641% (volume) • 15th April 2009 – 14th April 2010 – 3.8961% (volume) • Each subsequent “obligation period” – 5.2632% (volume) www.martineau-uk.com www.martineau-johnson.co.uk
  7. 7. Administration • The Office of the Renewable Fuels Agency • RTF Accounts – Obligatory accounts – Optional accounts • Closure of accounts • Information from supplier each month • Report to Parliament www.martineau-uk.com www.martineau-johnson.co.uk
  8. 8. RTF Certificates • Application by a supplier • Issued by the RFA • Certificate covers each litre of fuel • Issue recorded in the RTF account of the supplier • Transferable between account holders • Can be carried forward but 25% limit • Revocation www.martineau-uk.com www.martineau-johnson.co.uk
  9. 9. Discharging the Obligation • RFA notifies supplier of – amount of renewable fuel which should have been supplied – RTF certificates held in the supplier’s RTF account • Supplier surrenders RTF certificates or pays “buy-out payment” – shortfall x “buy-out price” • Buy-out price is 35p less duty derogation until 15th April 2010 and is then 30p less duty derogation • Interest on late payments www.martineau-uk.com www.martineau-johnson.co.uk
  10. 10. Re-cycling buy-out payments • Buy-out fund is allocated amongst complying suppliers www.martineau-uk.com www.martineau-johnson.co.uk
  11. 11. Civil Penalties • Failure to apply for an account within 28 days • Failure to produce RFT certificate • Payment of the buy-out amount • Inaccurate information www.martineau-uk.com www.martineau-johnson.co.uk
  12. 12. European Targets • Sustainability concerns • 10% share of biofuels in transport fuels by 2020 • 5% by 2015 • 40% of this from non-food and feed competing second-generation biofuels, electricity or hydrogen www.martineau-uk.com www.martineau-johnson.co.uk
  13. 13. Sustainability criteria • Biofuels must save at least 45% of GHG emissions compared to fossil fuels • And 60% from 2015 • “social sustainability criteria” – Respect for land rights – Fair remuneration www.martineau-uk.com www.martineau-johnson.co.uk
  14. 14. Catherine Burke Tel: 0870 763 1552 catherine.burke@martineau-uk.com www.martineau-uk.com E: lawyers@martineau-uk.com

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