The Renewable Transport Fuel Obligations Order 2007

PART 5U.K.DISCHARGE OF OBLIGATION

PaymentsU.K.

21.—(1) As soon as reasonably practicable after the end of an obligation period, the Administrator must notify each obligated supplier of the following—

(a)the amount of renewable transport fuel which the Administrator calculates should, in accordance with section 124(2)(b) of the 2004 Act and article 4(4), have been supplied at or for delivery to places in the United Kingdom during that obligation period, and

(b)the number of [F1each type of RTF certificate] being held to the credit of the supplier's RTF account[F2, and the number of each type of RTF certificate] which may be used as evidence for the purposes of meeting the supplier's renewable transport fuel obligation.

[F3(1A) For the purposes of paragraph (1)(b), the maximum number of relevant crop RTF certificates which may be used to meet (or towards meeting) the supplier’s renewable transport fuel obligation may not exceed the number of such certificates which corresponds with the amount calculated under article 21A.]

(2) A certificate may be produced as evidence by the supplier pursuant to this Order—

(a)by means of an electronic submission transmitted to a website of the Administrator, which identifies the credit of a certificate in the supplier's RTF account, or

(b)by other means, in a case where the Administrator determines that it is necessary to allow production of an RTF certificate by those means.

(3) A supplier must notify the Administrator of the number [F4and type] of RTF certificates held in the supplier's RTF account which are to be counted towards the discharge of the supplier's renewable transport fuel obligation for the obligation period in question, and which are to be debited accordingly from the RTF account.

(4) That notification must be given to the Administrator by the specified date referred to in article 4(3)(b).

(5) Where a supplier fails to notify the Administrator of the number of RTF certificates to be counted by the date mentioned in paragraph (4), the Administrator must deem the number to be nil.

(6) A supplier who does not wholly discharge the renewable transport fuel obligation for an obligation period by the production of evidence in accordance with paragraph (2) by the specified date referred to in article 4(3)(b) must pay to the Administrator a sum [F5(the “buy-out amount”)] determined in accordance with paragraph (7).

[F6(7) The “buy-out amount” is determined as follows—

  • Step 1

    Calculate in litres—

    (a)

    the amount (“the DF only amount”) of development fuel in respect of which the supplier has produced development fuel RTF certificates as evidence (in accordance with paragraph (2)) in relation to the supplier’s development fuel target during the obligation period in question; and

    (b)

    the amount (“the any RTF amount”) of renewable transport fuel of any type in respect of which the supplier has produced RTF certificates (of any type) as evidence (in accordance with paragraph (2)) in relation to the supplier’s main obligation during the obligation period in question.

  • Step 2

    Calculate the number of litres (if any) by which—

    (a)

    the DF only amount falls short of the amount needed to meet the supplier’s development fuel target (“the development fuel target shortfall”); and

    (b)

    the any RTF amount falls short of the amount needed to meet the supplier’s main obligation (“the main obligation shortfall”).

  • Step 3

    Multiply the development fuel target shortfall by £0.80 (“sum A”).

  • Step 4

    Multiply the main obligation shortfall by £0.30 (“sum B”).

  • Step 5

    Add sum A and sum B to produce the buy-out amount.]

[F7(8) For the purposes of section 128(1) of the 2004 Act and this Order, the period within which the buy-out amount, calculated under paragraph (7), must be paid to the Administrator (the “buy-out payment period”) is—

(a)in respect of an obligation period which ends on 14th April in a year, the period beginning on 15th April of that year and ending on 10th January in the following year;

(b)in respect of an obligation period which ends on 31st December in a year, the period beginning on 1st January of the following year and ending on 26th October of that following year.]

[F8(9) Where a supplier does not pay all of the buy-out amount to the Administrator before the end of the buy-out payment period—

(a)the unpaid buy-out amount carries interest at the rate specified in paragraph (10), and is to be calculated in accordance with paragraph (11); and

(b)the unpaid buy-out amount, and any unpaid interest, is a debt due from the supplier to the Administrator until it has been paid in full.]

(10) The rate for the purpose of paragraph (9)(a) is 5 percentage points above the base rate of the Bank of England as at the [F9day immediately after the last day of] the buy-out payment period in question.

(11) The increase is to be calculated on a daily basis beginning on the [F10day immediately after the last day of] the buy-out payment period in question, and ending on the date on which payment is received by the Administrator.

Textual Amendments

[F11Calculation of maximum amount of relevant crop renewable transport fuel that may count towards meeting the obligationU.K.

21A.  The maximum amount of renewable transport fuel derived from relevant crops which may be used to meet an obligated supplier’s renewable transport fuel obligation in an obligation period listed in column (1) of the following table is the amount of such fuel which equates to the percentage, listed in the corresponding entry in column (2), of the total volume of relevant fuel supplied by the supplier in relation to the obligation period—

(1) Obligation period(2) Percentage of total volume of relevant fuel supplied
15th April to 31st December 20184.00%
1st January to 31st December 20194.00%
1st January to 31st December 20204.00%
1st January to 31st December 20213.83%
1st January to 31st December 20223.67%
1st January to 31st December 20233.50%
1st January to 31st December 20243.33%
1st January to 31st December 20253.17%
1st January to 31st December 20263.00%
1st January to 31st December 20272.83%
1st January to 31st December 20282.67%
1st January to 31st December 20292.50%
1st January to 31st December 20302.33%
1st January to 31st December 20312.17%
1st January to 31st December 2032, and subsequent obligation periods2.00%]

Textual Amendments

[F12Re-cycling of buy-out paymentsU.K.

22.—[F13(1) For the purposes of section 128(9) of the 2004 Act, the “transport fuel suppliers of a specified description” are any transport fuel supplier who, in relation to an obligation period in respect of which the Administrator has received the sums referred to in section 128(7)—

(a)is an obligated supplier, or a non-obligated supplier for whom an account is maintained by the Administrator pursuant to article 7(3)(a); and

(b)held one or more RTF certificates in an RTF account at the time they were notified to the Administrator in accordance with article 21(3) or surrendered under paragraph (2)(a) as the case may be.]

(2) Subject to paragraph (5), the system of allocation of the sums referred to in section 128(6) is as follows—

(a)each transport fuel supplier referred to in paragraph (1) must notify the Administrator of the number of RTF certificates held in the supplier's RTF account which the supplier surrenders to the Administrator in relation to the obligation period in question;

(b)those notifications must be given to the Administrator by the [F1410th January] (or the next working day after [F1410th January], if [F1410th January] is not a working day) immediately following the obligation period in question;

(c)where a supplier fails to notify the Administrator by that date of the number of RTF certificates to be surrendered, the Administrator must deem the number to be nil;

(d)the Administrator must calculate the total sums received by the Administrator pursuant to article 21(6) and (9) by the [F1510th February] (or the next working day after [F1510th February], if [F1510th February] is not a working day) (“the buy-out fund”);

(e)the Administrator may also include in the buy-out fund any sum received by the Administrator pursuant to article 21(6) and (9) after the [F1610th February] (or after the next working day after [F1610th February], if [F1610th February] is not a working day) (“late sum received”);

(f)the Administrator must allocate the buy-out fund in equal shares between each RTF certificate which is counted under article 21(3) or surrendered under sub-paragraph (a), and

(g)the Administrator must make the payments, as soon as reasonably practicable after the date referred to in sub-paragraph (e), to the suppliers who held those RTF certificates [F17at the time they were notified to the Administrator in accordance with article 21(3) or surrendered under sub-paragraph (a) as the case may be].

(3) In the case of any late sum received which the Administrator does not include in the buy-out fund pursuant to paragraph (2)(e) in relation to the obligation period in question (“the principal obligation period”), the Administrator must—

(a)allocate the sums in equal shares between each RTF certificate which is counted under article 21(3) or surrendered under paragraph (2)(a), and

(b)when making payments in relation to a subsequent obligation period, make the payments to the suppliers who held those RTF certificates [F18at the time they were notified to the Administrator in accordance with article 21(3) or surrendered under paragraph (2)(a) as the case may be in relation to the principal obligation period].

(4) For the purposes of paragraphs (2) and (3), a supplier “surrenders” an RTF certificate where the supplier—

(a)does not need the certificate to count towards the discharge of the supplier's renewable transport fuel obligation (if any) for the obligation period in question;

(b)notifies the Administrator that the supplier renounces any further benefit from holding the certificate, and

(c)claims a share of the buy-out fund for the obligation period in question,

and the RTF certificate is debited from the supplier's RTF account accordingly.

(5) In the circumstances set out in paragraph (6), the Administrator must make such provision as is fair and reasonable with regard to—

(a)dealing with any sum paid by the supplier under article 21,

(b)allocating shares and making payments under this article, and

(c)any other matter requiring to be dealt with pending and following the final disposal of the court proceedings.

(6) The circumstances referred to are where—

(a)an RTF certificate held by a supplier is revoked,

(b)by way of court proceedings the supplier challenges the decision to revoke, and

(c)the court proceedings have not been finally disposed of by the [F1915th November] immediately following the obligation period in question.]

Textual Amendments

F12Art. 22 revoked (15.4.2018) by The Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018 (S.I. 2018/374), regs. 1, 24 (subject to a saving in relation to any obligation period ending on or before 14.4.2017)