The Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018

“(a)

processing residue;

(b)

products;

(c)

residues from agriculture, aquaculture, fisheries or forestry; or

(d)

waste.”.

“(4)

For the purposes of this Order—

(a)

references to a type of fuel as being “renewable” are references to fuel of that type which meets the definition of “renewable transport fuel”24;

(b)

references to the “renewable transport fuel obligation” include the development fuel target and the main obligation.”.

“(1A)

“Aviation gasoline” means “aviation gasoline” within the meaning given in section 1(3D) of the 1979 Act26 which meets one of the following standards—

(a)

ASTM International standard D910 (as revised or re-issued from time to time)27;

(b)

Ministry of Defence standard 91-90 (as revised or re-issued from time to time)28; or

(c)

a standard that is equivalent to either of the standards mentioned in sub-paragraphs (a) and (b).

(1B)

“Aviation turbine fuel” means fuel—

(a)

which consists of heavy oil;

(b)

of which more than 50 per cent by volume distils at a temperature of 240 degrees centigrade;

(c)

which is to be used as fuel for aircraft; and

(d)

which meets one of the following standards—

(i)

ASTM International standard D1655 (as revised or re-issued from time to time)29;

(ii)

Ministry of Defence standard 91-91 (as revised or re-issued from time to time)30; or

(iii)

a standard that is equivalent to either of the standards mentioned in paragraphs (i) and (ii).”.

“(2C)

“Development fuel” means a renewable transport fuel which consists of—

(a)

biofuel which—

(i)

is eligible for the issue of an additional RTF certificate under article 17A(3) to (5);

(ii)

is not made from segregated oils or segregated fats, including used cooking oils and tallow; and

(iii)

consists of a type of renewable transport fuel specified in paragraph (2D); or

(b)

RFNBO which consists of a type of renewable transport fuel specified in paragraph (2D).

(2D)

For the purposes of paragraph (2C), the specified types of renewable transport fuel are—

(a)

aviation gasoline;

(b)

aviation turbine fuel;

(c)

hydrogen;

(d)

substitute natural gas;

(e)

fuel that can be blended and have a renewable fraction at rates of at least 25% by volume in the final blend, whilst still meeting the applicable fuel standards listed in BS EN: 228 (for petrol, as revised or re-issued from time to time) or BS EN: 590 (for diesel, as revised or re-issued from time to time)31.”.

“(a)

which is for use in non-road transports; and”.

“(10)

“Relevant fuel” means hydrocarbon oil or renewable hydrogen which—

(a)

is or was owned by the supplier at the assessment time;

(b)

is for use in aircraft, non-road transports or road vehicles; and

(c)

falls within one of the following categories—

(i)

petrol;

(ii)

diesel;

(iii)

gas oil;

(iv)

renewable transport fuel,

but does not include detergents, cetane improvers, lubricity improvers, viscosity improvers, oxidation inhibitors, gum inhibitors, anti-corrosive preparations and similar substances intended for use as fuel additives.”.

“(10B)

“RFNBO” means liquid or gaseous renewable fuel of non-biological origin—

(a)

which is used in transport;

(b)

the energy content of which comes from renewable sources other than biomass; and

(c)

which is not made from—

(i)

biofuels; or

(ii)

a carbon source that has been generated for the purpose of converting it into a fuel for use in transport.

(10C)

“Substitute natural gas” means renewable methane produced from the product of gasification or pyrolysis, where—

(a)

“gasification” means the substoichiometric oxidation or steam reformation of a substance to produce a gaseous mixture containing at least two of the following—

(i)

oxides of carbon;

(ii)

methane;

(iii)

hydrogen;

(b)

“pyrolysis” means the thermal degradation of a substance in the absence of an oxidising agent (other than that which forms part of the substance itself) to produce char and at least one or both of gas and liquid.”.

“(a)

a “specified period” means—

(i)

a period beginning on 15th April in any year before 2018 and ending on the following 14th April;

(ii)

the period beginning on 15th April 2018 and ending on 31st December 2018;

(iii)

a period beginning on 1st January in any year after 2018 and ending on the following 31st December,

and any such period is referred to in this Order as an “obligation period”;

(b)

the “specified date” means—

(i)

in respect of any obligation period which ends on 14th April in a year, 29th November of that year (or the next working day after 29th November if 29th November is not a working day);

(ii)

in respect of an obligation period which ends on 31st December in a year, 15th September of the following year (or the next working day after 15th September if 15th September is not a working day); and”.

“(4)

For the purposes of section 124(2) of the 2004 Act and this Order, the “specified amount” of renewable transport fuel for an obligated supplier in an obligation period is the sum of—

(a)

the development fuel target for that supplier for that period; and

(b)

the main obligation for that supplier for that period.

(5)

The supplier’s “development fuel target” for an obligation period within column 1 of the table in paragraph (6C) is the amount of development fuel equal to the percentage of the supplier’s obligated amount for that period set out in the corresponding entry in column 2 of the table.

(6)

The supplier’s “main obligation” for an obligation period within column 1 of the table in paragraph (6C) is the amount of renewable transport fuel equal to the percentage of the supplier’s obligated amount for that period set out in the corresponding entry in column 3 of the table.

(6A)

Development fuel supplied by the supplier during an obligation period which exceeds the amount of that supplier’s development fuel target for that period may count towards the supplier’s main obligation for that period.

(6B)

The obligated amount for an obligation period is determined as follows—

(a)

calculate the notional amount of relevant fuel which the supplier has supplied at, or for delivery to, places in the United Kingdom during the obligation period (see paragraph (7)); and

(b)

if the notional amount is less than 10 million litres, deduct the first 450,000 litres of that amount.

(6C)

The table is as follows—

(1) Obligation period or periods	(2) % which, when applied to the obligated amount, gives the development fuel target	(3) % which, when applied to the obligated amount, gives the main obligation
15th April 2017 to 14th April 2018	No development fuel target	4.987%
15th April to 31st December 2018	No development fuel target	7.817%
1st January to 31st December 2019	0.109%	9.180%
1st January to 31st December 2020	0.166%	10.637%
1st January to 31st December 2021	0.556%	10.679%
1st January to 31st December 2022	0.893%	10.714%
1st January to 31st December 2023	1.119%	10.738%
1st January to 31st December 2024	1.345%	10.762%
1st January to 31st December 2025	1.573%	10.787%
1st January to 31st December 2026	1.802%	10.811%
1st January to 31st December 2027	2.032%	10.835%
1st January to 31st December 2028	2.262%	10.860%
1st January to 31st December 2029	2.494%	10.884%
1st January to 31st December 2030	2.727%	10.909%
1st January to 31st December 2031	2.961%	10.934%
1st January to 31st December 2032, and subsequent obligation periods	3.196%	10.959%”.

“(7)

For the purposes of paragraph (6B), the “notional amount” of relevant fuel which the supplier has supplied at, or for delivery to, places in the United Kingdom during an obligation period is determined in accordance with the following formula—

$$FN=HA-\left(E\times R\times \frac{S}{T}\right)$$

where—

FN is the notional amount of relevant fuel;

HA is the total volume of relevant fuel which was, during that period—

1. (a)

   owned by the supplier; and

2. (b)

   supplied at, or for delivery to, places in the United Kingdom;

E is the volume of eligible fuel;

R is the percentage of E which is attributable to relevant feedstock;

S is the volume of E which meets the sustainability criteria;

T is the volume of E which is attributable to relevant feedstock.”.

“(9)

For the purposes of this article—

(a)

except where sub-paragraph (b), (c) or (d) applies, one kilogram of gaseous relevant fuel must be treated as equivalent to one litre of liquid relevant fuel;

(b)

where the gaseous relevant fuel is renewable methane, including substitute natural gas, one kilogram of that fuel must be treated as equivalent to 1.90 litres of liquid relevant fuel;

(c)

where the gaseous relevant fuel is renewable butane, renewable propane or a combination of renewable butane and renewable propane, one kilogram of that fuel must be treated as equivalent to 1.75 litres of liquid relevant fuel;

(d)

where the gaseous relevant fuel is renewable hydrogen, one kilogram of that fuel must be treated as equivalent to 4.58 litres of liquid relevant fuel.”.

“(4A)

For the purpose of discharging a person’s renewable fuel transport obligation or of issuing RTF certificates, the volume of an amount of renewable transport fuel is deemed to be the notional volume determined in accordance with the following formula—

$$RN=RA\times RF\times \left(\frac{D+S}{T}\right)$$

where—

RN is the notional volume;

RA is the total volume of renewable transport fuel which was, during the obligation period—

1. (a)

   owned by the supplier at the assessment time; and

2. (b)

   supplied at, or for delivery to, places in the United Kingdom;

RF is the percentage of RA which is attributable to relevant feedstock;

D is the volume of RA which is eligible for the issue of an additional RTF certificate (see article 17A);

S is the volume of RA which meets the sustainability criteria;

T is the volume of RA which is attributable to relevant feedstock.”.

“(5)

For the purposes of this article—

(a)

except where sub-paragraph (b), (c) or (d) applies, one kilogram of gaseous renewable transport fuel must be treated as equivalent to one litre of liquid renewable transport fuel;

(b)

where the gaseous renewable transport fuel is renewable methane, including substitute natural gas, one kilogram of that fuel must be treated as equivalent to 1.90 litres of liquid renewable transport fuel;

(c)

where the gaseous renewable transport fuel is renewable butane, renewable propane or a combination of renewable butane and renewable propane, one kilogram of that fuel must be treated as equivalent to 1.75 litres of liquid renewable transport fuel;

(d)

where the gaseous renewable transport fuel is renewable hydrogen, one kilogram of that fuel must be treated as equivalent to 4.58 litres of liquid renewable transport fuel.”.

“(c)

in the case of development fuel, evidence of the fact that the fuel meets the definition of development fuel.”.

“(8)

The power of the Administrator to require a transport fuel supplier to produce evidence under paragraph (5) includes the power to require the supplier to produce a verifier’s assurance report.”.

“(k)

to consider applications for RTF certificates also as applications for GHG credits under the 2012 Regulations;

(l)

to award GHG credits in accordance with the 2012 Regulations at the same time as the award of any RTF certificates under this Order.”.

“(3)

If the Administrator requires a transport fuel supplier to produce a verifier’s assurance report under article 12(5) (also see article 12(8)), then paragraph (1) has effect as if for “limited assurance engagements”, in both places where the words occur, there were substituted “limited assurance engagements or, if the Administrator requires, reasonable assurance engagements”.”.

“(a)

is for use in aircraft, non-road transports or road vehicles,”.

“(2A)

Each RTF certificate must specify which of the following types of renewable transport fuel the certificate relates to—

(a)

renewable transport fuel derived from relevant crops;

(b)

development fuel;

(c)

renewable transport fuel of a type not falling within sub-paragraph (a) or (b).”.

“(ii)

later than the revocation date in paragraph (4A).”.

“(4A)

For the purposes of paragraph (4), the “revocation date” is—

(a)

in respect of an obligation period which ends on 14th April in a year, 16th October of that year (or the next working day after 16th October, if 16th October is not a working day);

(b)

in respect of an obligation period which ends on 31st December in a year, 16th July of the following year (or the next working day after 16th July, if 16th July is not a working day).”.

“(5A)

For the purposes of paragraph (5), the “applicable date” is—

(a)

in respect of an obligation period which ends on 14th April in a year, 23rd October of that year (or the next working day after 23rd October, if 23rd October is not a working day);

(b)

in respect of an obligation period which ends on 31st December in a year, 23rd July of the following year (or the next working day after 23rd July, if 23rd July is not a working day).”.

“(7A)

For the purposes of paragraph (7)(a), the “notice giving date” is—

(a)

in respect of an obligation period which ends on 14th April in a year, 6th November of that year (or the next working day after 6th November, if 6th November is not a working day);

(b)

in respect of an obligation period which ends on 31st December in a year, 6th August of the following year (or the next working day after 6th August, if 6th August is not a working day).”.

“(8A)

For the purposes of paragraph (8)(b), the “reconsideration date” is—

(a)

in respect of an obligation period which ends on 14th April in a year, 15th November of that year (or the next working day after 15th November, if 15th November is not a working day);

(b)

in respect of an obligation period which ends on 31st December in a year, 15th August of the following year (or the next working day after 15th August, if 15th August is not a working day).”.

“(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.”.

“(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.”.

“(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.”.

“(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.”.

“(5A)

For the purposes of paragraph (5), the “applicable date” is—

(a)

in respect of an obligation period which ends on 14th April in a year, 16th November of that year (or the next working day after 16th November, if 16th November is not a working day);

(b)

in respect of an obligation period which ends on 31st December in a year, 16th August of the following year (or the next working day after 16th August, if 16th August is not a working day).”.

“(8)

For the purposes of paragraph (7)(a), the value of an RTF certificate is an amount equal to the amount that would be payable, in respect of the fuel to which the certificate relates, if that fuel were to fall within the development fuel target shortfall or the main obligation shortfall under article 21(7).”.

“(2)

An amount of renewable transport fuel which—

(a)

is produced from residues (including processing residues) which are not residues from agriculture, aquaculture, fisheries or forestry;

(b)

is produced from wastes which are not residues from agriculture, aquaculture, fisheries or forestry; or

(c)

consists of RFNBO;

meets the sustainability criteria if it meets the GHG emission saving threshold, whether or not it meets the land criteria.”.

“Minimum emission saving4.

For the purposes of this Schedule, the “minimum GHG emission saving”, in relation to renewable transport fuel supplied at, or for delivery to, places in the United Kingdom, is—

(a)

if the fuel is produced in an old chain of installations, 50%;

(b)

if the fuel is produced in a new chain of installations, 60%.”.

“(e)

land which is natural highly biodiverse grassland, or which has been natural highly biodiverse grassland at any time after December 2007.”.