Amendment of article 3 (definitions of fuels and fuel products)
3.—(1) Article 3 shall be amended as follows.
(2) After paragraph (2) insert—
“(2A) “Biobutanol” means a liquid consisting of butanol produced wholly from biomass and capable of being used for the same purposes as light oil.”.
(3) After paragraph (5) insert—
“(5A) “Light oil” has the same meaning as in the 1979 Act(1).”.
(4) Omit paragraph (9).
(5) In paragraph (10), for sub-paragraph (b) substitute—
“(b)within paragraph (13), and”.
(6) After paragraph (10) insert—
“(10A) “Renewable diesel” means heavy oil—
(a)which is produced wholly from biomass or waste cooking oil or a combination of biomass and waste cooking oil,
(b)the ester content of which does not exceed 0.0005% by weight or is nil, and
(c)the sulphur content of which does not exceed 0.005% by weight or is nil.”.
(7) In paragraph (12), after “biodiesel” insert “, renewable diesel”.
(8) After paragraph (12) insert—
“(13) Hydrocarbon oil is within this paragraph if it is—
(a)in the case of hydrocarbon oil supplied at or for delivery to places in the United Kingdom during the obligation period beginning on 15th April 2008, chargeable to the duty of excise on hydrocarbon oil under section 6 of the 1979 Act(2), or
(b)in the case of hydrocarbon oil supplied at or for delivery to places in the United Kingdom during the obligation period beginning on 15th April 2009 or any subsequent obligation period, of one of the descriptions set out in paragraph (14).
(14) For the purposes of paragraph (13)(b) the descriptions are—
(a)hydrocarbon oil which is chargeable to the duty of excise on hydrocarbon oil under section 6 of the 1979 Act, other than the renewable diesel component in hydrocarbon oil comprising a mixture of heavy oil which is not renewable diesel and heavy oil which is renewable diesel;
(b)the heavy oil component in bioblend, where a duty of excise is chargeable in relation to that bioblend under the 1979 Act(3), other than any renewable diesel component which is included in the heavy oil component; or
(c)the hydrocarbon oil component in bioethanol blend, where a duty of excise is chargeable in relation to that bioethanol blend under the 1979 Act(4).”.
The expression “light oil” is defined in section 1(3) of the Hydrocarbon Oil Duties Act 1979 (c.5).
Section 6 of the Hydrocarbon Oil Duties Act 1979 was amended by: the Finance Act 1981 (c.35), section 4(1); the Finance Act 1997 (c.16), section 7(2) and (3); and the Finance Act 2008 (c.9), sections 13(3), 15(2), and 16(1) and (3), and Schedule 6, Part 1, paragraph 4. There are also other amendments to section 6 which are not yet in force.
The duty of excise on bioblend is chargeable under section 6AB of the 1979 Act, as inserted by the Finance Act 2002 (c.23), section 5(4), and amended by the Finance Act 2008, section 13(4) and Schedule 5, paragraph 5. There are also other amendments to section 6AB which are not yet in force.
The duty of excise on bioethanol blend is chargeable under section 6AE of the 1979 Act, as inserted by the Finance Act 2004 (c.12), section 10(3).