The Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018

Made: 13th March 2018

Coming into force: 15th April 2018

A draft of these Regulations was laid before Parliament in accordance with sections 124(5) and 192(3) of the 2004 Act; section 2(8) of the 1999 Act; and paragraph 2(2) of Schedule 2 to the 1972 Act, and approved by a resolution of each House of Parliament.

PART 1 — PRELIMINARY MATTERS

Citation and commencement

1

These Regulations may be cited as the Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018 and come into force on 15th April 2018.

Extent

2

An amendment, repeal or revocation made by these Regulations has the same extent as the Act or instrument amended, repealed or revoked.

PART 2 — AMENDMENT OF THE ENERGY ACT 2004

Introductory

3

The Energy Act 2004 is amended in accordance with this Part.

Amendment of section 132 of the Energy Act 2004

4

• (1) Section 132 (interpretation of Chapter 5 of Part 2)[^f00009] is amended as follows.

• (2) In subsection (3)(a)(iii), omit “agricultural or forestry”.

• (3) In subsection (4)—

• (a) omit the definition of “agricultural or forestry tractor”;

• (b) for the definition of “inland waterway vessel”, substitute—

• “inland waterway vessel” means an inland waterway vessel, within the meaning given by Article 3(c) of the 2016 Directive, to which that Directive applies (see Article 2 of the 2016 Directive); and in this definition “the 2016 Directive” means Directive EU 2016/1629 of the European Parliament and of the Council of 14 September 2016[^f00010] laying down technical requirements for inland waterway vessels;

• (c) for the definition of “non-road mobile machinery”, substitute—

• “non-road mobile machinery” means non-road mobile machinery, within the meaning given by Article 3(1) of the 2016 Regulation, which has installed in it an engine within a category set out in paragraph 1 of Article 4 of that Regulation; and in this definition “the 2016 Regulation” means Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016[^f00011] on requirements relating to gaseous and particulate pollutant emission limits and type-approval for internal combustion engines for non-road mobile machinery;

• (d) for the definition of “recreational craft”, substitute—

• “recreational craft” has the meaning given by Article 3(2) of Directive 2013/53/EU of the European Parliament and of the Council of 20 November 2013[^f00012] on recreational craft and personal watercraft;

• (e) for the definition of “renewable source”, substitute—

• “renewable source”, in relation to energy, means any of the following non-fossil sources of energy, namely wind, the sun, aerothermal sources, geothermal sources, water (including hydrothermal sources, waves and tides) and biomass (including landfill gas, sewage treatment plant gas and biogases), where— “aerothermal” means energy stored in the form of heat in the ambient air; “geothermal” means energy stored in the form of heat beneath the surface of solid earth; and “hydrothermal” means energy stored in the form of heat in surface water;

• (f) after the definition of “renewable source”, insert—

• “tractor” has the meaning given by Article 3(8) of Regulation (EU) No 167/2013 of the European Parliament and of the Council of 5 February 2013[^f00013] on the approval and market surveillance of agricultural and forestry vehicles.

PART 3 — RENEWABLE TRANSPORT FUEL AMENDMENTS

Introductory

5

The Renewable Transport Fuel Obligations Order 2007[^f00014] is amended in accordance with this Part.

Insertion of article 1A

6

After article 1 (citation and commencement), insert—

(1A) (1) The Secretary of State must from time to time— (a) carry out a review of the regulatory provision contained in this Order; and (b) publish a report setting out the conclusions of the review. (2) The first report must be published before 15th April 2023. (3) Subsequent reports must be published at intervals not exceeding 5 years. (4) Section 30(3) of the Small Business, Enterprise and Employment Act 2015[^f00015] requires that a review carried out under this article must, so far as is reasonable, have regard to how the directive is implemented in other member States. (5) Section 30(4) of the Small Business, Enterprise and Employment Act 2015 requires that a report published under this article must, in particular— (a) set out the objectives intended to be achieved by the regulatory provision referred to in paragraph (1)(a); (b) assess the extent to which those objectives are achieved; (c) assess whether those objectives remain appropriate; and (d) if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision. (6) In this article, “regulatory provision” has the same meaning as in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015 (see section 32 of that Act).

Amendment of article 2

7

• (1) Article 2 (interpretation)[^f00016] is amended as follows.

• (2) In paragraph (1)—

• (a) omit the definition of “the 2011 Order”;

• (b) omit the definition of “buy-out fund”;

• (c) omit the definition of “the cross compliance requirements”;

• (d) omit the definition of “the directive”;

• (e) for the definition of “relevant feedstock”, substitute—

• “relevant feedstock” means— processing residues of biological origin; products of biological origin, including relevant crops and dedicated energy crops; renewable sources other than biomass used to produce RFNBO; residues from agriculture, aquaculture, fisheries or forestry; wastes of biological origin;

• (f) omit the definition of “sustainable wastes”;

• (g) in the appropriate places, insert—

• “the 2012 Regulations” means the Motor Fuel (Road Vehicle and Mobile Machinery) Greenhouse Gas Emissions Reporting Regulations 2012[^f00017];

• “assessment time” means— in relation to renewable aviation turbine fuel that is attributable to relevant feedstocks, the time at which a refinery certificate of quality is issued which certifies, in accordance with standard 1530 (as revised or re-issued from time to time)[^f00018] of the Energy Institute[^f00019] and the Joint Inspection Group[^f00020], that the fuel meets one of the standards set out in article 3(1B)(d); in relation to renewable hydrogen that is attributable to relevant feedstocks, the time at which is it sold to a retail customer; in relation to gaseous renewable transport fuel that is attributable to relevant feedstocks and which is to be used only in non-road transports, the time at which the fuel is set aside for such use; in relation to fuel, other than fossil fuel for use in aircraft, which does not fall within sub-paragraph (a), (b) or (c), the time at which the requirement under the 1979 Act to pay the duty of excise with which that fuel is chargeable took effect;

• “dedicated energy crops” means crops which— consist of— non-food cellulosic material; or ligno-cellulosic material, except saw logs and veneer logs; are grown for the purpose of being used as fuel or energy; are not a residue (including processing residues and residues from agriculture, aquaculture, fisheries or forestry) or a waste; and would not normally be used for food or feed;

• “development fuel RTF certificate” means an RTF certificate[^f00021] which derives from renewable transport fuel made from development fuel and which is specified as such in accordance with article 17(2A);

• “development fuel target” has the meaning given in article 4(5);

• “the directive” means Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009[^f00022] on the promotion of the use of energy from renewable sources, etc., and a reference in this Order to Annex V to the directive is a reference to that Annex as amended from time to time;

• “GHG credit” has the meaning given in the 2012 Regulations;

• “issue of an additional RTF certificate” means the issue of an additional RTF certificate for each whole litre of fuel under article 17A;

• “ligno-cellulosic material” means material composed of lignin, cellulose and hemicellulose, such as biomass sourced from forests, woody energy crops and forest-based industries’ residues and wastes;

• “main obligation” has the meaning given in article 4(6);

• “non-food cellulosic material” means feedstocks which are mainly composed of cellulose and hemicellulose, having a lower lignin content than ligno-cellulosic material, including (among other things)— food and feed crop residues, such as straw, stover, husks and shells; grassy energy crops with a low starch content, such as ryegrass, switchgrass, miscanthus, giant cane and cover crops before and after main crops; industrial residues, including from food and feed crops after vegetal oils, sugars, starches and protein have been extracted; and material from biowaste;

• “non-road transports” means— non-road mobile machinery; inland waterway vessels which do not normally operate at sea; recreational craft which do not normally operate at sea; tractors;

• “processing residue”, in relation to a production process, means a substance— that is not the end product sought directly from the process; the production of which is not a primary aim of the process; and in respect of which the process has not been deliberately modified in order to produce it;

• “relevant crops” means starch-rich crops, sugars, oil crops and main crops, where “starch-rich crops” include— cereals (regardless of whether only the grains are used or the whole plant); tubers and root crops, including potatoes, Jerusalem artichokes, sweet potatoes, cassava and yams; and corm crops, including taro and cocoyam, but feedstocks listed in Annex IX of the directive are not relevant crops;;

• “relevant crop RTF certificate” means an RTF certificate which derives from renewable transport fuel made from relevant crops and which is specified as such in accordance with article 17(2A);

• “residues from agriculture, aquaculture, fisheries or forestry” means residues that are directly generated by agriculture, aquaculture, fisheries or forestry, but not including residues from related industries or processing;

• “type of RTF certificate” means the specification as to the type of renewable transport fuel to which an RTF certificate relates in accordance with article 17(2A);

• “waste” means any substance or object which the holder discards, or intends or is required to discard, but does not include any substance or object that has been intentionally modified or contaminated for the purpose of transforming it into a waste;

• (3) In paragraph (2), for sub-paragraphs (a) and (b) substitute—

(a) processing residue; (b) products; (c) residues from agriculture, aquaculture, fisheries or forestry; or (d) waste.

• (4) In paragraph (3), for “1827(M)” substitute “1837(M) Amendment 2”[^f00023].

• (5) After paragraph (3), insert—

(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”[^f00024]; (b) references to the “renewable transport fuel obligation” include the development fuel target and the main obligation.

Amendment of article 3

8

• (1) Article 3 (definitions of fuels and fuel products)[^f00025] is amended as follows.

• (2) After paragraph (1), insert—

(1A) “Aviation gasoline” means “aviation gasoline” within the meaning given in section 1(3D) of the 1979 Act[^f00026] which meets one of the following standards— (a) ASTM International standard D910 (as revised or re-issued from time to time)[^f00027]; (b) Ministry of Defence standard 91-90 (as revised or re-issued from time to time)[^f00028]; 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)[^f00029]; (ii) Ministry of Defence standard 91-91 (as revised or re-issued from time to time)[^f00030]; or (iii) a standard that is equivalent to either of the standards mentioned in paragraphs (i) and (ii).

• (3) After paragraph (2B), insert—

(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)[^f00031].

• (4) In paragraph (5B), for sub-paragraph (a), substitute—

(a) which is for use in non-road transports; and

• (5) For paragraph (10), substitute—

(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.

• (6) After paragraph (10A), insert—

(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.

Amendment of article 4

9

• (1) Article 4 (the renewable transport fuel obligation)[^f00032] is amended as follows.

• (2) In paragraph (1)—

• (a) for sub-paragraph (a), substitute—

(a) owns relevant fuel; and

• (b) in sub-paragraph (b), for “oil” substitute “fuel”.

• (3) In paragraph (2), for “oil” substitute “fuel”.

• (4) In paragraph (3), for sub-paragraphs (a) and (b) substitute—

(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

• (5) For paragraphs (4) to (6), substitute—