Cabinet of Ministers Regulations No. 696 in Riga august 25, 2008 (pr. No 60 39 §) rules on national and EU aid modalities of action, "support for business creation and development (including non-agricultural diversification of activities)" Sub "energy production from agricultural and forestry biomass originating" Issued under the agricultural and rural development Act article 5, fourth paragraph i. General questions 1. determines the order in which the State and the European Union's support for the measure "support for business creation and development (including non-agricultural diversification of activities)" measure "energy production from agricultural and forestry biomass originating" (hereinafter referred to as Sub-action). 2. these regulations apply to that aid, project application and selection, evaluation, decision making and notification, contract and requesting public financing in accordance with laws and regulations, establishing procedures for granting state aid in the European Union and open the project in the form of tender application field and development of fisheries. 3. Under goal to support the companies that support the production of energy from agricultural or forestry origin of biomass, provided the electricity produced mostly outside the company. 4. Sub location is a rural area. 5. Rural area: 5.1. up to 31 December 2008 is the whole territory of Latvia, except of the city and the administrative center of the District of the city. On the territory of the constitutes rural district in the administrative center of the city to a rural area;
5.2. starting on 1 January 2009, it is the whole territory of Latvia, except Republican city and County territorial units-cities that have more than 5000 inhabitants. On the territory of the constitutes the County territorial units – the city with rural-rural area, where the city has more than 5000 inhabitants. 6. the applicant is: 6.1. legal person producing the Treaty establishing the European Community listed in annex I to the agricultural and forestry products;
6.2. the agricultural service cooperative society, which comply with the legislation on the recognition of cooperative societies with the eligibility criteria set out and which members produced the Treaty establishing the European Community listed in annex I to the agricultural and forestry products;
6.3. this rule 6.1 and 6.2 in support the applicants referred to a newly created company in which 6.1. and 6.2 in the listed company owns at least 51% shares and who conceived the project before the application. 7. the company-these rules referred to in paragraph 6 of the status of the applicant, the aid shall be fixed in accordance with the Commission on 25 February 2004, Regulation (EC) no 364/2004 amending Regulation (EC) No 70/2001 as regards the extension of its scope to include aid for research and development, classification into Annex I. 8. is eligible under the initial investment in material and immaterial assets to create new or extend existing plant, diversify production with new products, or significantly change the existing shop floor production process. Material assets are eligible for investment in new equipment and in construction, including reconstruction, to ensure that energy production from agricultural and forestry biomass originating. Intangible assets are eligible for the rights to use the technology, purchased the patent rights and licenses, as well as consulting services directly related to the achievement of the objective of the project. 9. the applicant shall comply with the following public funding conditions: 9.1. in implementing the project, the objectives under reach;
9.2. meet at least one of the following: 9.2.1. job creation;
9.2.2. the existing jobs;
9.2.3. develop and expand the company's business operations;
9.3. the investment complies with the relevant Community standards. Compliance with these standards attest to the European Community or the certificate of conformity of the manufacturer or of his authorised representative, issued a declaration of conformity, the content and form of which shall comply with the relevant laws and regulations;
9.4. in the application of the project demonstrates economic viability under these rules 10, 11, 12 and 13 listed in point requirements;
9.5. the provision referred to in 6.1 supports the applicant at least 50% of the total raw materials for energy production can provide on site farm, producing the Treaty establishing the European Community listed in annex I to the agricultural and forestry products, the provision of paragraph 6.2. bottom support the applicant purchased from their members. If the applicant is the rule at the bottom paragraph 6.3 start-up company, this condition applies to a newly created company, founder of the company, referred to in this rule or in point 6.2 6.1;
9.6. at least 51% of the electricity produced using this Sub-measure for support, project monitoring is realized. 10. supports the applicant shall prepare a business plan for at least three years. Business plan indicates the following: 10.1 the company's initial situation;
10.2. the company management system;
10.3. the company's current operations;
10.4. the activities to be carried out;
10.5. specific objectives to be achieved and the starting point for the development of the undertaking's business;
10.6. the activities and objectives of the implementation timetable;
10.7. the information about the required investment;
10.8. market research and industry analysis;
10.9. competition;
10.10. marketing system (electricity, heat, marketing);
10.11. the holding of the strengths and weaknesses, opportunities, and threats analysis;
10.12. the activities of the farm financial analysis and cash flow;
10.13. Description of the production technology, production facilities, planned the scheme in principle, the capacity and the necessary calculation of raw materials, including information about this rule 9.5. conditions referred to and obtain energy;
10.14. details of other rural development programmes and national aid measures required for the attainment of the objectives and the development of the farm (such as training, consulting). 11. This rule 6.1 and 6.2. aid referred to by the applicant prove the economic viability of the company last year concluded the project before the application. The economic viability of the meet two of the following indicators: 11.1. equity/total assets ≥ 0.20;
11.2. current assets/short-term liabilities ≥ 1.00 (short-term creditors off short-term deferred income included in the composition of the State and the financial support of the European Union);
11.3. net profit + depreciation 50% x ≥ 0.12. This rule 6.1 and 6.2. aid referred to by the applicant prove the economic viability of the company a year after the implementation of the project, and the economic viability of all these provisions comply with paragraph 11 of these indicators, as well as an increase of at least one of the indicators of the economic viability of 0.05 when compared with the last year before the project entered into the application. 13. If the applicant is 6.3 these rules referred to the newly founded company, economic viability is positive cash flow of the project in the year of application, in all the years of implementation and a year after the implementation of the project, but not less than three consecutive years. Cash flow cash balance at the end of each month must be positive. Application of the project contains the project's cash flow in the year of application, in all the years of implementation and a year after the implementation of the project shall demonstrate the ability to implement and achieve the project objectives. 14. To apply for aid, aid the applicant personally or an electronic document in the form of electronic documents in accordance with the law shall be submitted to the rural support service: 14.1 application project (annex 1) two copies, including business plan (also electronically);
14.2. the Declaration of compliance of the economic operator, the detail in a small or medium company category, according to the laws and regulations on economic activities and by whom deklarēšano according to petty, the definition of small and medium-sized enterprises;
14.3. this rule 6.1 and 6.2. aid referred to preten dent-State revenue service certificate of tax payment and the average number of employees working in the last two years the report separately over the years (issued not earlier than one month prior to the application of the project). If the applicant does not submit this certificate, the rural support service receives it during the administrative procedure and in accordance with the procedure prescribed by law;
14.4. the credit institution or credit consortia for the willingness to consider granting (if the project will take credit). The certificate indicates a creditor and borrower's property and the loan amount. If the project supports the tenderer intends to invest private or any other money funds, it shall submit the documents that prove the availability of funds;

14.5. this rule 6.3. tenderer of aid referred to in point 6.1 and 6.2-bottom, founder of the company referred to a newly created firm guarantees about its obligations, which will result in making the investment;
14.6. this rule 6.1 and 6.2. aid referred to preten dent-annual report (full set) for the last year before the conclusion of the project submission (copy (the original show)) in accordance with the annual accounts Act;
14.7. the applicant, in accordance with the annual accounts Act did not provide annual accounts, the annual income declaration "revenue from operating activities" for the last year before the conclusion of the project submission (copy (the original show)) in accordance with the laws and regulations of people's annual income statement;
14.8. National Environment Service regional environmental management issued a statement about the polluting activities will be carried out under the project, and whether the aid is necessary to the applicant (A) or (B) pollutant categories authorized or polluting activities of category C certification;
9.3. the land registry Department of the shore type issued (copies (the original show)) or the land registry certificate of real estate (copy (the original show)), or a long term lease agreement registered in the land registry for a minimum of seven years from the date of submission of the application (copy (the original show)) about the real estate in which to implement the project;
14.10. the electricity system operator's opinion on technical ability to pick up the electricity produced in the system, which is intended to connect the increased or new power generation capacity in accordance with the legislation on permits power generation capacity, or the introduction of new production equipment;
14.11. to qualify for financing for new construction or reconstruction, in conjunction with the application of the project in addition to submit planning and architectural task (copy (the original show)), if the date is not confirmed in the technical design;
14.12. the documents submitted with the application for the project or within six months after the conclusion of the contract between the support and the support of the applicant: 14.12.1. procurement procedures supporting documents in accordance with the laws and regulations on the application of the procurement procedure. Procurement procedure by submitting the supporting documents within six months after the conclusion of the contract between the rural support service and support the implementation of the project, the Tenderer shall only commence after the evaluation of the procurement procedure and the approval of the Field support service. Field support services procurement procedure shall examine and approve the month from the date of submission of supporting documents;
14.12.2. accept projects (technical design stage) or a copy of it (the original show) and completions (copy (the original show));
14.12.3. production capacity planned supporting technical documentation, taking into account the results of the purchase. A change in the planned plant capacity and eligible costs, is amended the contract between the rural support service and support candidates, but does not take into account the termination of conditions, if eligible costs varies by more than 30% contained in the Act on State regulations and EU aid modalities open project submissions in the form of the competition field and the development of fisheries. The application of the project eligible costs cannot increase. 15. project submissions are ranked after project selection criteria (annex 2). 3. the criteria referred to in the Group animal units determine using this provision of the annex 3. For start-up companies of animal units that belong to these terms or 6.1 6.2. above bottom, founder of the company. If the selection of the projects are equal, priority for public funding is the applicant who made the project investment in the territory of a municipality with less development index according to the legislation on the State budget grant awarding criteria to municipalities and regions in planning the European Union's structural funds co-financed projects. II. Public funding of the type and magnitude 16. Aid intensity under point 8 of these regulations the following eligible investments of 40% of the total amount of the eligible cost. 17. the programming period to one support applicants to the total eligible costs amount does not exceed 6 000 000 lats. The total amount of eligible costs are determined by the capacity of the production units and assuming that investment to 1 kW electricity does not exceed 3500 pounds. The plant capacity is determined by testing of plant production, plant put into service and connecting the electricity network or electricity production capacity building permissions, or the introduction of new production equipment authorization issued by the Ministry responsible for energy. Total eligible cost calculated for the smallest specified electricity production capacity. 18. If the project of new construction or reconstruction costs exceed the maximum eligible costs, the cost difference is covered by the aid. 19. If energy production to be using biogas, supports the applicant after fermentation or gasification equipment commissioning before installed cogeneration equipment can get intermediate and 60% of the allocated public funding, giving it to the expense documents. 20. Public funding under this sub-action is not combined with other public funding for the aid scheme or individual aid projects in relation to the same eligible costs. These rules that the aid intensity is applied to the total amount of eligible costs and do not exceed it regardless of whether public funds are provided by local, regional, national or European Union funds. III. Eligible and ineligible costs are under 21 to the following eligible costs: 21.1. new production equipment, which directly supports the manufacturing process sector implementation of the project, as well as one-time costs associated with the installation of equipment, to ensure the normal operation;
21.2. new construction and reconstruction costs, on the basis of contracts with third parties, responsible for carrying out the works;
21.3. the purchase of building materials, on the basis of projects submitted are accepted along with the project application;
21.4. small, small and medium enterprises – general costs (including architects, engineers and consultation fees, legal services, the technical-economic justification, patents and licences costs) directly linked to the preparation and implementation of the project in the site and do not exceed 8% of the costs referred to in this rule 21.1 21.2 and 21.3 in.;
21.5. large companies-only patents and licences costs directly related to the implementation of the project in the site and no more than 4% of the costs referred to in this rule 21.1 21.2 and 21.3 in.. 22. If the applicant does not provide for the public funding of equipment in dīšan press, they installed and put into service according to the law on the installation and use procedures. Public funding of these facilities only receive after their commissioning and supporting documents of the Field support service. 23. The maximum eligible costs public financing includes all of the objects in the calculation of the costs of construction (including external and internal plumbing, internal and external sewerage, internal and external power supply and connection costs distribution grids, ventilation and heating systems, as well as biomass storage space costs). 24. only projects Eligible are those positions and building materials that are directly tied to the achievement of the objective of the Sub-measure. 25. For the eligible costs the following are directly related to production costs, if their amount does not exceed 30% of the total eligible cost of construction: 25.1. Administrative space for new construction and reconstruction;
25.2. guarding and passes the room;
25.3. burglar alarm installation, including CCTV systems;
25.4. the utility room if it is explained the functional and the need for the implementation of the project activity;
25.5. the staff room;
6. improvement of the territory (territory of asphalt paving or other covering decking, lawn installation, installation of external lighting and the construction of the fence). 26. Public funding shall be paid only for goods that are purchased supports the applicant's property. When buying goods on the installment, on those public funds paid only when they have become a support applicant's property. 27. This provision and 21.5 21.4. bottom point at the other costs included in the assets of the firm and retained for at least five years in the establishment receiving the regional aid. 28. within the framework of Sub-action is not eligible: 28.1. interest payments, money transfers, Currency Exchange Commission payments and exchange rate losses;

28.2. fines, penalties, interest on arrears and costs;
28.3. the subcontracting, which increases the cost of the project, but does not add to the value of the project, as well as apakšlīgumo pay is determined as a percentage of the total cost of the project;
28.4. the costs associated with the supply of any services or work for which there is no appropriate procurement procedures carried out in accordance with the laws and regulations on the application of the procurement procedure;
28.5. existing maintenance costs, maintenance, spare parts and operating costs;
28.6. remuneration of personnel;
28.7. investments in agricultural production intended for the production of equipment, the acquisition of machinery and equipment;
17.9. costs in excess of the market price, and the unfinished work;
46.8. costs related to the investment, for the preparation of the raw material used in the production of energy;
28.10. other costs that are not eligible under Council of 20 September 2005 Regulation (EC) No 1698/2005 on support for rural development by the European agricultural fund for rural development (EAFRD) and the Commission of 15 December 2006, Regulation (EC) No 1974/2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European agricultural fund for rural development (EAFRD). 29. The final payment request, the applicant shall submit the rural support service after the commissioning of the production plant (with plant commissioning in these regulations refers to the machine running and testing) and the conclusion of the contract with the electricity system operator for power sales. After the implementation of the project, the beneficiary shall submit the support service for the last payment request submitted by: 29.1. Factories Act of testing;
29.2. the appropriate category (A) or (B) the authorization of a pollutant or pollutant activities in category C certification in accordance with the laws and regulations on pollution (submitted by producing a copy of the original);
29.3. authorisation for the introduction of new production facilities in accordance with the legislation on permits power generation capacity, or the introduction of new production equipment;
29.4. the contract with the electricity system operator of energy sale (submit a copy of the presentation of the original). 30. the project monitoring during the five years after the last payment is made, recipient may not change the project location. IV. final question 31. a decision on project approval or rejection of the application of the Field support service to adopt, after the European Commission approved the rules laid down in paragraph 17 of the total eligible cost in the amount of aid to the applicant. Prime Minister i. Godmanis Minister of Agriculture m. Roze Ministry of Agriculture presented version of annex 1 of the Cabinet august 25 2008. Regulations No 696 annex 1 PDF format agricultural Minister m. rose annex 2 Cabinet 25 august 2008. Regulations No 696 project selection criteria no Criteria group PO box the maximum number of points in a group criterion score 1. Project implementation vieta1 support the applicant implemented 30 projects in the territory, with a group of 4 and 5 development index 30 supports the applicant shall implement the project 3. the territory's development index of the Group of 15 other 0 2. Accepted būvprojekts2 15 support log accepted construction of 15 other projects supported by the applicant 3 0 property is a field of a farm animal, which represent at least 70 animals vienībām3 25 is the property of the applicant is not the applicant's estate 25 0 4. the difference between the maximum public funding and the project required public funding 20 for each full percentage point ≤ 20 notes 1. 1 Area development index determined in accordance with the distribution areas of the territory in accordance with the laws and regulations concerning the criteria the national budget to local governments and grant planning regional development agencies of the European Union structural funds co-financed projects. 2 in accordance with the laws and regulations on general provisions. 3 units of animals determined in accordance with the Cabinet's august 25, 2008, rule no. 696 "rules on national and EU aid modalities of action," support for business creation and development (including non-agricultural diversification of activities) "measure" energy production from agricultural and forestry biomass originating in "annex 3".
Minister of agriculture m. Roze annex 3 Cabinet 25 august 2008. Regulations no animal units no 696 BC farm animal species and animal unit (1) age group 1. Dairy Cows 0.70 2. Young (up to 6 months) 0.20 3. Male (from 6 to 12 months) 0.35 4. Breeding heifers (12 months) Meat of bovine animals 5 0.50 (from 6 to 12 months) 6. Breeding bulls 0.50 (12 months) 0.60 7. Fattening pigs (30-100 kg) 0.03 8. Mammals sows with piglets
9. the piglets Weaned 0.25 (7,5-30 kg) 0.007 10. Goats (with kids), sheep (Lamb) 0.09 11. Horses, older than 6 months, or Mare (foal) 0.40 12.13. Laying hens broilers 0.0004 0.006 14 turkeys, geese 0.06 15. Rabbits 0.024 16. Ostrich 17.0.05 0.11 fur animals 18. Small fur animals (e.g. mink) 0.018 note. 1 animal unit specified in the following table was calculated for animal unit assuming a notional animal that produces 100 kg per year of nitrogen kūtsmēslo to storage.
Minister of agriculture m. rose