The Renewable Transport Fuel Obligations Order 2007

• (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 day 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 day 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.

Re-cycling of buy-out payments

22

• (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 10th January (or the next working day after 10th January, if 10th 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 10th February (or the next working day after 10th February, if 10th 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 10th February (or after the next working day after 10th February, if 10th 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 at 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 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 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 15th November immediately following the obligation period in question.

PART 6 — IMPOSITION OF CIVIL PENALTIES

Civil penalties

23

• (1) The following provisions are designated for the purposes of section 129 of the 2004 Act: articles 7(2) and (6), 8(3), 12(4) and (7), 13(5) and (7), 16(4), 16B(1) to (3), 20(14) and 21(6).

• (2) A supplier is liable to a civil penalty if that supplier contravenes article 7(2) or 21(6).

• (2A) A supplier is liable to a civil penalty if that supplier or other person fails to submit a verifier’s report as required by article 16B(1) to (3).

• (3) A supplier or other person is liable to a civil penalty if at the time that supplier or other person provides the information or produces the evidence (as the case may be) referred to in article 7(6), 8(3), 12(4) or (7), 13(5) or (7), 16(4) or 20(14)—

• (a) that supplier or other person has not taken reasonable steps to ensure that the information or evidence is accurate, or

• (b) that supplier or other person has taken reasonable steps to ensure that the information or evidence is accurate, but the condition set out in paragraph (4) or (5) is subsequently satisfied.

• (4) In the case of article 7(6) or 8(3), the condition is that the supplier or other person has subsequently—

• (a) become aware that the information or evidence may be inaccurate but has not informed the Administrator of that fact within twenty working days of so becoming aware,

• (b) been informed by the Administrator that the information or evidence may be inaccurate but has not investigated and remedied the inaccuracy within such period as may reasonably be allowed by the Administrator, or

• (c) become aware (other than by being informed by the Administrator) that the information or evidence may be inaccurate but has not investigated and remedied the inaccuracy within such period as may reasonably be allowed by the Administrator.

• (5) In the case of article 12(4) or (7), 13(5) or (7), 16(4) or 20(14), the condition is that the supplier or other person has subsequently, but on or before the applicable date in paragraph (5A)—

• (a) become aware that the information or evidence may be inaccurate, but has not informed the Administrator of that fact within twenty working days of so becoming aware,

• (b) been informed by the Administrator that the information or evidence may be inaccurate, but has not investigated and remedied the inaccuracy within such period as may reasonably be allowed by the Administrator, or

• (c) become aware (other than by being informed by the Administrator) that the information or evidence may be inaccurate, but has not investigated and remedied the inaccuracy within such period as may reasonably be allowed by the Administrator.

• (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).

• (6) For the purposes of section 129(2) of the 2004 Act, a civil penalty notice must be given by written notice to the defaulter.

• (7) For the purposes of section 129(3)(a), “the specified amount” is—

• (a) in the case of an account holder who has gained, or attempted to gain, one or more RTF certificates by contravening a provision referred to in paragraph (1), an amount equivalent to twice the value of the RTF certificates which the account holder has gained, or attempted to gain, and

• (b) in any other case, £50,000.

• (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).

• (8A) In order to establish the value of an RTF certificate in accordance with paragraph (8), were the fuel to which it relates to fall within the main obligation shortfall under paragraph (7) of article 21, the multiplier for the purpose of calculating sum B referred to in Step 4 of that paragraph is—

• (a) where it relates to an application for an RTF certificate made on or before 31st December 2021, £0.30;

• (b) where it relates to an application for an RTF certificate made on or after 1st January 2022, £0.50.

• (9) For the purposes of section 129(3)(b), the turnover of the specified business of the defaulter is the applicable turnover for the business year preceding the date of the civil penalty notice.

• (10) Where the business year preceding the date of the civil penalty notice does not equal 12 months, the turnover is the amount which bears the same proportion to the applicable turnover during that business year as 12 months does to the period of that business year.

• (11) Where there is no preceding business year, the turnover is the applicable turnover of the defaulter for the period of 12 months ending on the last day of the month preceding the month in which the date of the civil penalty notice falls.

• (12) Where in the application of paragraph (11) the defaulter has applicable turnover for a period of less than 12 months, the turnover is the amount which bears the same proportion to the applicable turnover during the period for which the defaulter has applicable turnover as 12 months does to that period.

• (12A) Where a defaulter does not pay all or any part of the penalty to the Administrator by the date before which the civil penalty must be paid—

• (a) the sum outstanding is to increase at the rate specified in paragraph (12B) and the increase is to be calculated in accordance with paragraph (12C); and

• (b) the increased sum is a debt due from the defaulter to the Administrator until it has been paid in full.

• (12B) The rate for the purposes of paragraph (12A) is 5 percentage points above the base rate of the Bank of England as at the date before which the civil penalty must be paid to the Administrator.

• (12C) The increase is to be calculated on a daily basis beginning on the date before which the civil penalty must be paid to the Administrator, and ending on the date on which payment is received by the Administrator.

• (13) In this article—

• “applicable turnover” means the amounts, ascertained in conformity with normal accounting practice in the United Kingdom, which are—derived by the defaulter from the supply of petrol, diesel and renewable transport fuel at or for delivery to places in the United Kingdom, andcomputed on an accruals basis so that those amounts relating to the period for which the turnover is being determined are taken into account, without regard to the date of invoice or receipt of payment,after deduction of trade discounts, value added tax and any other taxes based on such amounts;

• “business year” means a period of more than six months in respect of which a defaulter publishes accounts or, if no such accounts have been published for the period, prepares accounts; and

• “date of the civil penalty notice” means the date on which the Administrator gives notice under section 129(2) of the 2004 Act.

Objections to civil penalties

24

• (1) For the purposes of section 130(2)(b) of the 2004 Act, the manner in which the notice of objection must be given to the Administrator is—

• (a) by delivering it to the Administrator,

• (b) by leaving it at the address of the Administrator, or

• (c) by sending it by post to the Administrator at that address,

and “delivering” includes transmitting by means of an electronic communications network, or by other means but in a form that nevertheless requires the use of apparatus by the recipient to render it intelligible.

• (2) For the purposes of section 130(2)(b), the period within which the notice must be given is a period of 28 days beginning on the day immediately after the day on which the civil penalty notice is given.

• (3) For the purposes of section 130(5), the manner in which the notification of the outcome of the Administrator's consideration must be given is—

• (a) by delivering it to the objector,

• (b) by leaving it at the objector's proper address, or

• (c) by sending it by post to the objector at that address,

and “delivering” includes transmitting by means of an electronic communications network, or by other means but in a form that nevertheless requires the use of apparatus by the recipient to render it intelligible.

• (4) Section 193(3) to (7) of the 2004 Act applies in relation to the giving or sending of the notification to the objector under paragraph (3).

• (5) For the purposes of section 130(5), the period before the end of which the notification must be given is a period of 28 days beginning on the day immediately after the day on which the notice of objection is given to the Administrator.

SCHEDULE 1 — SUSTAINABILITY CRITERIA

Constitution

1

In this Schedule—

• “chain of installations” means, in respect of any consignment of renewable transport fuel, all of the processing installations the use of which leads to a material modification from any of the relevant feedstock to the finished fuel. It does not include installations solely used for the collection, transportation or storage of the feedstocks;

• ...

• ...

• ...

• ...

• ...

• “new chain of installations” means a chain of installations in respect of which production of renewable transport fuel in one or more of the installations began after 5th October 2015;

• “old chain of installations” means a chain of installations in respect of which production of renewable transport fuel in at least one of the installations was taking place on or before 5th October 2015;

• ...

2

• (1) To the extent that renewable transport fuel was produced from a feedstock listed in column (2) of the table below, that feedstock meets the sustainability criteria if it meets the conditions specified, in relation to the feedstock concerned, in column (3) of the table.

(1) Entry number	(2) Feedstock	(3) Conditions that the feedstock must meet in order to meet the sustainability criteria
1	Forest biomass, including residues from forestry or wastes from forestry	The GHG emission saving threshold and the forest criteria
2	Residues, including processing residues, which are not residues from agriculture, aquaculture, fisheries or forestry	The GHG emission saving threshold
3	Wastes, which are not wastes of biological origin from agriculture, aquaculture, fisheries or forestry	The GHG emission saving threshold
4	Residues from agriculture or wastes from agriculture	The GHG emission saving threshold, the land criteria and the soil carbon criteria
5	Renewable energy of non-biomass origin	The GHG emission saving threshold
6	Any feedstock not falling within entries 1 to 5 or 7	The GHG emission saving threshold and the land criteria
7	Wastes of fossil origin	The GHG emission saving threshold and the sustainable waste management criteria

• (2) A relevant feedstock meets the soil carbon criteria if the renewable transport fuel supplier provides evidence, by reference to the guidance published by the Administrator under article 15(1)(m), that satisfies the Administrator that adequate monitoring or management plans are in place for the land concerned which address the impacts on soil quality and soil carbon of the harvesting of the relevant feedstock from that land.

• (3) In the table, “GHG emission saving threshold” means the threshold established in accordance with paragraph 3.

• (4) Wastes of fossil origin meet the sustainable waste management criteria if the renewable transport fuel supplier provides evidence, by reference to the guidance published by the Administrator under article 15(1)(m), that satisfies the Administrator that adequate monitoring or management plans are in place to address the local environmental impacts caused as a result of sourcing or processing the waste.

Staff

3

• (1) Subject to sub-paragraph (2), an amount of renewable transport fuel meets the GHG emission saving threshold if the GHG emission saving from its use is equal to or greater than the minimum GHG emission saving applicable to that fuel as specified in paragraph 4.

• (2) If the renewable transport fuel is produced partly from raw materials other than sustainable feedstocks, the minimum GHG emission saving for the purposes of this Schedule applies only to the volume of that fuel which...—

• (a) is attributable to sustainable feedstocks; ...

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

• (c) is produced from wastes which are not residues from agriculture, aquaculture, fisheries or forestry; or

• (d) consists of RFNBO.

• (3) The GHG emission saving from the use of an amount of renewable transport fuel of a type falling within sub-paragraph (2) is the greater of—

• (a) where applicable, the default value determined by reference to the guidance published by the Administrator under article 15(1)(m); and

• (b) the actual value determined by reference to the guidance published by the Administrator under article 15(1)(m).

• (4) The GHG emission saving from the use of an amount of renewable transport fuel which consists of RFNBO is determined by reference to the guidance published by the Administrator under article 15(1)(m).

Proceedings

4

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) where the renewable transport fuel is not RFNBO or a recycled carbon fuel—

• (i) if the fuel is produced in an old chain of installations, 55%;

• (ii) if the fuel is produced in a new chain of installations, 65%;

• (b) where the renewable transport fuel is RFNBO or a recycled carbon fuel, 65%;

• (c) the minimum GHG emission saving from the use of an amount of recycled carbon fuel is determined by reference to guidance published by the Administrator under article 15(1)(m).

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Money

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounts and audit

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounting Officer

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conflict of interest

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Status of the Office

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary powers

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Execution of documents

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Signed

Signed by authority of the Secretary of State for Transport

Jim Fitzpatrick — Parliamentary Under Secretary of State — 2007-10-25

Explanatory note

(This note is not part of the Order)

Footnotes

Editorial notes