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Energy Act 2004

Section 126: Determinations of amounts of transport fuel

294.This section allows a renewable transport fuel order to make provision about how amounts of transport fuel are to be counted or determined for the purposes of provision made by or under this Chapter, for example, in relation to the discharging of an RTFO. For these purposes, regard may be had to the life-cycle effects of different fuels based on carbon emissions, sustainable development, agriculture and other economic activities, and the environment generally. The purpose is to allow a wide degree of flexibility in the operation of an RTFO, in particular, as regards what fuels 'count' towards the discharge of an RTFO, and to what extent.

295.For example, an order may:

  • Stipulate that only RTFs of a specified description will count towards discharge of an RTFO.

  • Set maximum amounts for RTFs of specified descriptions that will count towards discharge of an RFTO.

  • Set minimum amounts for RTFs of specified descriptions that will count towards discharge of an RTFO.

  • Make provision that only a certain proportion of a particular type of RTF is to count for the purposes of an RTFO. For example, in the case of blended biofuel, it may be provided that only the proportion of the blended biofuel that is attributable to biofuel will count towards discharge of an RTFO. Blended biofuel is a fuel that consists of a blend of biofuel and fossil fuel (see section 132(1)).

  • Make provision for how such proportions are to be determined. For example, in the case of blended biofuel, there needs to be a way of determining the extent to which the blend is attributable to biofuel, as opposed to fossil fuel. This could be done by reference to the volumes of each of those fuels used to produce the blend.

  • Make provision for a supply of RTFs to be counted towards discharge of an RTFO only where it meets specified conditions relating to the fuel’s supply (e.g. might relate to the purposes of the supply), the person by or to whom it was supplied (e.g. might limit to supply by the obligated supplier itself), or the place it was supplied to (e.g. might limit to certain geographical boundaries).

  • Make provision preventing evidence of the supply of the same RTF to be counted towards discharge of an RTFO for more than one supplier (i.e. ‘double-counting’).

  • Make provision for the supply of any fuel that is subsequently exported outside the UK not to count towards discharge of an RTFO.

  • Make provision for how units of various transport fuels are to be measured for the purposes of an obligation (for example, by energy, volume, etc).

  • Make provision for specified RTFs to be allocated more or less “credit” per unit of fuel supplied than other RTFs.

  • Make provision for aggregating different units of measurement applying to different transport fuels.

  • Make provision allowing certain presumptions to be made. For example, it may be appropriate for certain presumptions to be made for the purpose of determining the effect of evidence provided to the Administrator by a supplier in support of the discharge of his RTFO.

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