Explanatory note

This Order amends the Renewable Transport Fuel Obligations Order 2007 (S.I. 2007/3072) (“the 2007 Order”). It transposes, in part, Articles 7a to 7e and Annex IV of Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC (OJ No L 350, 28.12.1998, p.58), as inserted by Directive 2009/30/EC of the European Parliament and of the Council of 23 April 2009 (OJ No L 140, 5.6.2009, pp. 88-113).

The overall purpose of the amendments to the 2007 Order is to expand the Renewable Transport Fuels Obligation (“the RTF obligation”), which is imposed on suppliers by article 4 of the 2007 Order, to cover suppliers of fuel for additional end uses. These are non-road mobile machinery (including inland waterway vessels which do not normally operate at sea), agricultural or forestry tractors, and recreational craft which do not normally operate at sea.

Article 3 of this Order sets out the meaning of not operating at sea.

Article 4 to 6 of this Order amend article 3 of the 2007 Order (definitions of fuels and fuel products). They insert definitions of “gas oil” and “low sulphur gas oil”, and amend the definition of “relevant hydrocarbon oil” to include “gas oil” and fuel used for the additional end uses.

The effect of article 7 of this Order is to ensure that the total volume of fuel supplied in the United Kingdom which must come from a renewable source is not increased by fuel for the additional end uses being brought within the scope of the 2007 Order. More specifically the 2007 Order places an obligation on fuel suppliers to ensure that a certain percentage of the fuel they supply is made up of renewable transport fuel. This percentage is referred to as “the specified amount” and is provided for in article 4(6)(c)(ii) of the 2007 Order. Bringing fuel for the additional end uses within the scope of the 2007 Order would increase the total volume of renewable fuel needing to be supplied across the United Kingdom under the 2007 Order, should the specified amount remain unchanged. Therefore to keep the total volume of renewable fuel supplied across the United Kingdom constant, article 7 reduces the specified amount.

Article 8 of this Order brings fuel for the additional end uses within the meaning of “eligible oil”.

Article 9 of this Order extends paragraph (1) of article 5 of the 2007 Order (determinations of amounts of transport fuel). It introduces a new presumption that certain types of fuel which pass the duty point on or after 15th April 2013 will be taken to constitute relevant hydrocarbon oil. It also inserts a new paragraph (1B), which allows for displacement of the new presumption that is added to article 5(1) by this Order.

The effect of Article 10 of this Order, which amends article 5(2) of the 2007 Order, is that fuel for the additional end uses counts towards discharging a supplier’s RTF obligation (subject to certain conditions being met). Provision is made so that this change does not apply for calculations that occur on or after 15th April 2013 in relation to fuel that passed the duty point before that date.

Article 11 of this Order amends article 17 of the 2007 Order (issue of RTF certificates) so that fuel for the additional end uses counts as fuel for which renewable transport fuel certificates must be issued (subject to certain requirements being satisfied).

Article 12 of this Order makes express provision for an unpaid civil penalty imposed under the 2007 Order, along with interest on the penalty, to be enforceable as a civil debt.

An impact assessment on the effect that expanding the scope of the 2007 Order to cover additional fuel and suppliers will have on the costs of business and the voluntary sector is available from the Low Carbon Fuels Division, Department for Transport, Great Minster House, 33 Horseferry Road, London SW1P 4DR (telephone 020 7944 4895). The impact assessment and a transposition note are annexed to the Explanatory Memorandum which is available alongside this instrument on the UK legislation website at http://www.legislation.gov.uk. A copy of the impact assessment has been placed in the library of each House of Parliament.

A copy of the Directives referred to in this Explanatory Note may be viewed in the Official Journal of the European Union via the EUR-lex website at http://eur-lex.europa.eu.

Merchant Shipping Notices are published by the Maritime and Coastguard Agency and can be viewed on the agency’s website at http://www.dft.gov.uk/mca which also has details of any amendments or replacements.