The importance of the increase in the use of biofuels in transport is not only in reducing greenhouse gas emissions attributable to the substitution of fossil fuels for biofuels, but also also in its renewable nature, its contribution to the diversification of primary energy consumption and to a reduced energy dependence on such fossil fuels, and in the positive knock-on effects that could be derived from farms agricultural and rural areas.

Directive 2003 /30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels and other renewable fuels in transport provides that Member States shall ensure that a minimum proportion of biofuels and other renewable fuels is marketed on their markets. To this end, biofuels are allowed to be made available to consumers mixed with conventional fuels up to 5 per cent by volume, or in higher concentrations in specific labelled products. The indicative target for the use of biofuels of at least 5.75% of the energy content of petrol and gas oils marketed for transport purposes in each Member State is also set for 31 December 2010. member.

The additional provision of Law 34/1998 of 7 October 1998 on the hydrocarbon sector establishes annual targets for biofuels and other renewable fuels for transport purposes, which are mandatory targets. from 2009, reaching 5.83 percent in 2010. In addition, the Ministry of Industry, Tourism and Trade is empowered to lay down the provisions necessary to regulate a mechanism for promoting the incorporation of biofuels and other renewable fuels for transport purposes.

In order to achieve these objectives as efficiently as possible, this order sets minimum targets per product below the overall objective provided by Law 34/1998 of 7 October, mechanisms of temporary flexibility. for the accounting of the quantities of biofuels sold or consumed, and a system of certification and compensatory payments to be managed by the National Energy Commission and will allow the subject to transfer certificates, while serving as a mechanism for the control of the obligation.

The mechanism for promoting the use of biofuels and other renewable fuels for transport purposes, which is approved in this order, will make it possible to reach a global target of 7 percent of the content in 2011. energy of gas oils and gas oils marketed for transport purposes.

Although some aspects contained in such a mechanism are equally subject to regulation for tax purposes, the content of this order is approved without prejudice to the provisions of the tax rules.

The mandatory hearing has been carried out to those interested through the Hydrocarbons Advisory Council, whose allegations have been taken into account in the preparation of the report of the National Energy Commission of 18 December 2007, and this standard has been submitted to the report of the Commission Delegated for Economic Affairs.

In its virtue, according to the State Council, I have:

CHAPTER I

General provisions

Article 1. Object.

The purpose of this order is to regulate a mechanism to promote the use of biofuels and other renewable fuels for transport purposes.

Article 2. Definitions.

1. For the purposes of this order, "biomass" means the biodegradable fraction of the products, wastes and residues from agriculture (including substances of plant origin and animal origin), forestry and the related industries, as well as the biodegradable fraction of industrial and municipal waste.

2. Similarly, for the purposes of this order, "biofuels and other renewable fuels" shall be understood as biofuels: liquid or gaseous fuels for transport produced from biomass, whereas the products listed below:

(a) "bioethanol": ethyl alcohol produced from agricultural or plant-based products, whether used as such or after modification or chemical transformation;

(b) 'biodiesel' means methyl or ethyl ester produced from fats of plant or animal origin;

(c) "biogas": gaseous fuel produced by anaerobic digestion of biomass;

(d) "biomethanol": methyl alcohol obtained from products of agricultural or plant origin, whether used as such or after modification or chemical transformation;

e) "biodimethylether": DME (dimethylether) produced from biomass;

f) "bioETBE": ETBE (ethyl ter-butyl ether) produced from bioethanol;

g) "bioMTBE": MTBE (methyl ter-butyl ether) produced from biomethanol;

h) "synthetic biofuels" means synthetic hydrocarbons or their mixtures, produced from biomass;

i) "biohydrogen": hydrogen produced from biomass or other renewable energy sources;

(j) 'pure vegetable oil' means oil obtained from oil, crude or refined oil plants, but without chemical modification;

k) "Other biofuels": fuels for transport produced from biomass, such as other bioalcohols, bioesters and bioethers other than those listed; products produced by treatment in refinery biomass, such as hydrobiodiesel, biogasoline and bioLPG; and biorefinery fuels.

3. Certificate of biofuels, hereinafter certified, shall mean the document issued at the request of a subject stating that the subject has accredited sales or consumption for an equivalent tonne of oil (tep) of biofuels in a given year. The following types of biofuel certificates shall be distinguished:

(a) Certificates of Biofuels in Diesel (CBD): certificates resulting from the sales or consumption of biodiesel and other biofuels likely to be mixed with gas oils.

(b) Certificates of Biofuels in Gasoline (CBG): certificates resulting from the sales or consumption of bioethanol and other biofuels likely to be mixed with gasolines.

4. For each product referred to in paragraph 1, only the part of its energy content corresponding to the biomass used shall be taken into account for the purposes of fulfilling the obligations laid down in this Ministerial Order. The energy content, in tonnes of oil equivalent (tep), which may be certified for each type of biofuel is set out in the Annex to this order.

CHAPTER II

Mandatory Biofuels Targets

Article 3. Bound subjects.

The required subjects, for the purposes of Article 4, shall be:

(a) The operators authorised to distribute the wholesale petroleum products, regulated in Article 42 of Law 34/1998 of 7 October, of the hydrocarbon sector, for their annual sales on the domestic market, excluding sales to other wholesale operators.

(b) Companies that develop the retail distribution activity of petroleum products, as regulated in Article 43 of Law 34/1998 of 7 October, on the part of their annual sales on the domestic market supplied by the wholesale operators.

(c) Consumers of petroleum products, on the part of their annual consumption not provided by wholesale operators or by companies that develop the retail activity of petroleum products.

Article 4. Mandatory targets for biofuels.

1. The required subjects set out in Article 3 shall, on an annual basis, accredit to the certification body the ownership of a minimum quantity of biofuel certificates to meet the objectives of the following table:

	2008	2009	2010
biofuels targets	1.9%	3.4%	5.83%

The percentages indicated in the table above will be calculated according to the following formula:

in =	(CBDin + CBGin
	in + Gin

Where:

OB_in indicates the overall objective of biofuels in automotive and gasoline diesel indicated in the table above, which must be accredited by the bound subject in the year n.

CBD_in is the amount of diesel biofuel certificates of the year n that are owned by the obligated subject.

CBG_in is the amount of gasoline biofuel certificates of the year n that are owned by the obligated subject.

D_in is the quantity of automotive gas oil sold or consumed in accordance with Article 3, by the subject bound i-th in year n, expressed in tonnes of oil equivalent (tep). This quantity shall include mixtures of biofuels with fossil fuel oil, as well as the quantities of pure biofuels likely to be mixed with automotive gas oil.

G_in is the quantity of gasolines sold or consumed in accordance with Article 3, by the subject bound i-th in year n, expressed as tonnes of oil equivalent (tep). This quantity shall include mixtures of biofuels with fossil-based gasolines, as well as the quantities of pure biofuels likely to be mixed with gasolines.

2. The required subjects set out in Article 3 shall each year accredit to the certification body the ownership of the minimum quantity of biofuels in diesel (CBD) certificates to meet the following objectives. table:

	2008	2009	2010
biofuels targets	1.9%	2.5%	3.9%

The percentages indicated in the table above will be calculated according to the following formula:

OBD_in = CBD_in /D_in

Where:

OBD_in indicates the purpose of biofuels in automotive gas oil to be credited by the obligated subject in year n.

CBD_in and D_in are the parameters defined in paragraph 1 of this Article.

3. In addition, the required subjects set out in Article 3 shall, on an annual basis, accredit to the certification body the ownership of the minimum quantity of biofuels in petrol (CBG) certificates to meet the objectives of the the following table:

	2008	2009	2010
biofuels targets in gasolines	1.9%	2.5%	3.9%

The percentages indicated in the table above will be calculated according to the following formula:

OBG_in = CBG_in/G_in

Where:

OBG_in indicates the purpose of biofuels in gasolines to be accredited by the bound subject in the year n.

CBG_in and G_in are the parameters defined in paragraph 1 of this Article.

4. The annual targets set for the year 2008 will be indicative, while the targets set for 2009 and 2010 will be enforced.

Article 5. Supply shortage situations.

To ensure the supply of petroleum products, through the order of the Minister of Industry, Tourism and Trade, it will be possible to delete or modify for as long as necessary the obligations established in the the present order.

CHAPTER III

Certification

Article 6. Certification entity.

The National Energy Commission is designated as an entity responsible for the issue of biofuel certificates, the management of the certification mechanism, as well as the supervision and control of the obligation.

Article 7. Accreditation.

1. The required subjects shall request the issue of certificates of biofuels to the certification body, after accreditation of all the quantities of biofuels included in their sales or consumption as defined in Article 3, indicating if these quantities correspond to biofuels which may be included in automotive gas oil or gas oil.

2. Sales for the purpose of transport to final consumers of biofuels which are not likely to be included in petrol or gas oils may also be certified. Such certificates may be considered as certificates of biofuels in diesel or as biofuel certificates in petrol, at the choice of the applicant.

3. For the certification of quantities of biofuels the following general conditions shall be met:

a) A certification account must be available for each subject managed by the certification entity.

(b) It shall be established that mixtures of biofuels with fossil fuels have been made in Member States of the European Union. Quantities of biofuels which have been introduced into the European Union mixed with fossil fuels may not be certified.

(c) The sale or consumption must have been communicated in the form and term, and shall provide the documentation to be established.

(d) Special taxes and import charges that are applicable must have been paid.

e) The sustainability of the biofuel must have been credited in terms of the quality, origin of the raw materials and the environmental assessment of the crops. This condition shall be enforceable only after the adoption of the legal provisions governing it in accordance with the Community rules to be developed for that purpose.

Article 8. System of annotations in account of certificates.

1. The certification body shall establish a system of entries for the certificates of biofuels, distinguishing between the certificates of biofuels in gasolines and the certificates of biofuels in diesel.

2. The certification body shall establish the conditions for the holders of certification accounts to be such accounts.

Article 9. Transfer of certificates.

Certification account holders may transfer certificates of biofuels from which they are holders to accounts of other subjects, maintaining in any case the distinction between certificates of biofuels in gasolines and in diesel. The transfer of certificates shall be processed after communication to the certification body.

Article 10. Certificate handover the following year.

From the financial year 2010, up to 30 percent of each subject's annual obligation may be fulfilled by the calculation of certificates corresponding to the previous calendar year, provided that the holder of such certificates (a) certificates have been processed for the following year, giving up their participation in the compensatory payments fund in the part corresponding to the certificates transferred.

In the transfer of certificates the following year the distinction between biofuels certificates in diesel and petrol will be maintained.

Article 11. Compensatory payments.

1. Those who are obliged to not have sufficient certificates for the fulfilment of their obligations shall be obliged to make compensatory payments for the amount resulting from the application of the following formula:

PC_in = DG_in • α_G + DD_in • α_D + DT_in • α_T

Where:

PC_in is the compensatory payment expressed in euros to be made by the subject bound i-th in year n.

α_D is a value of € 350 /biofuel certificate in diesel.

α_G is a value of € 350 /biofuel certificate in gasoline.

α_T is a value of € 350 /certificate.

DG_in, DD_in , and DT_in are the certified deficit of biofuels in gasoline, gasoline, and global for the subject i-th in year n according to the following formulas

{

DGin = max {0, OBGin • Gin -CBGin

in = max {0, OBDin • Din -CBDin

in = max {0, OBin • (Din+ Gin ) -CBGin -CBDin -DGin-DDin

The other parameters are those defined in this order.

2. The revenue generated by this concept in each calendar year shall provide a single fund of compensatory payments which the certification body shall distribute among the subjects with excess certificates in relation to their obligation according to the formula next:

PFC_in = EG_in • α_G + ED_in • α_D + ET_in • α_T

Where:

PFC_in, is the payment from the obligated subject's compensation fund in year n.

EG_in, ED_in and ET_in are the excesses of biofuels in relation to the objectives of gasolines, gasoils and global for the subject i-th in year n in relation to the objectives of biofuels in gasolines and gasoils, which shall be calculated according to the following formulae:

{

EGin = max {0, CBGin -[OBin • (Din + Gin) -OBDin • Din]

in = max {0, CBDin -[OBin • (Din + Gin)-OBGin • Gin]}

in = max {0, CBGin + CBD in -OBin • (Din+ Gin)-EGin -EDin]

The other parameters are those defined in this order.

If the one-year compensatory payment fund is not sufficient to satisfy the amounts calculated in accordance with the formula above, these amounts shall be reduced in proportion. Otherwise, if there is an excess of resources in the compensatory payments fund, this excess will go to the bottom of the following year.

3. Compensation payments resulting from the application of the provisions of paragraph 1 of this Article shall be deemed to be carried out and shall be determined by the certification body in accordance with Article 12 of this Regulation. compliance with the obligations laid down for the achievement of the annual targets for minimum content of biofuels and other renewable fuels of a subject subject to the following conditions:

{

CBGin ≥ 0.7 • OBGin • Gin

in -table_table_izq"> CBDin • OBDin • Din

Where the parameters used are those defined in this order.

Otherwise, a breach of the obligations established for the achievement of the annual minimum content targets for biofuels and other renewable fuels shall be deemed to have occurred. serious infringement in accordance with Article 109 (1) (z) (a) of Law 34/1998 of 7 October 1998. The imposition of administrative penalties which may result from such non-compliance shall be without prejudice to the compensatory payments to be made in any event, in accordance with paragraph 1 of this Article. Article.

4. The General Secretariat of Energy may update the values set out in this Article in accordance with the evolution of the biofuels market.

Article 12. Assessment of the amounts credited and annual settlement.

1. Until 1 April of each year, sales or consumption of biofuels during the preceding calendar year may be credited in accordance with the provisions of Chapter III. No transfer of certificates between subjects or transfers to the following calendar year may also be requested from that date.

2. Before 1 June of each year, the certification body shall notify the holders of certification accounts of the following aspects:

(a) number of certificates corresponding to the previous calendar year that count in your favor.

(b) number of certificates constituting each of their obligations corresponding to the previous calendar year.

(c) number of certificates which, if applicable, shall be missing for the fulfilment of each of their obligations, and the amount resulting from the payment.

3. Before 1 July of each year, the persons who are required to make compensatory payments shall make the corresponding amount in the bank account that the certification institution has available for that purpose.

4. The amount collected by way of contributions to the compensatory payments fund shall be paid to the persons who have the right to do so, in accordance with Article 11, before 1 August of each year.

Article 13. Certificate rectification and cancellation.

1. The certification body may rectify the certificates if errors or deficiencies are detected in their dispatch. Certificates may also be cancelled with no effect if the information provided for their issue is found to have been incorrect or has not been met with the requirements in force. These acts shall be adopted by the certification body after hearing the parties concerned and by means of a reasoned decision.

2. The rectification and cancellation of certificates must be completed before the end of the year following the year of their issue.

CHAPTER IV

Control and sanctioning regime

Article 14. Verification and inspection.

1. The certification body shall carry out the checks and inspections it deems necessary for the exercise of its powers in the field of supervision and control of the obligations defined in this order, which may affect both the subject to those referred to in Article 3 as to non-obligated subjects.

2. The persons who demonstrate the sale or consumption of biofuels shall provide the information required to them, as well as allow access to their premises and their records and accounts, under appropriate conditions to facilitate the sale or consumption of biofuels. verification, and where appropriate, inspection of compliance with the obligations set out in this order, as well as the requirements to be established relating thereto.

Article 15. Annual report on the use of biofuels for transport purposes.

The Certification Entity shall publish an annual report on the use of biofuels for transport purposes.

This report will cover at least the following aspects:

1. Compliance with the obligations corresponding to the previous financial year and, where appropriate, proposals for the improvement of the mechanism for the promotion of the use of biofuels.

2. Medium-term forecasts for the coverage of the demand for biofuels will be included.

3. The estimation of greenhouse gas emissions avoided, by type of biofuel and by type of raw materials used in the production of biofuels.

4. The origin of the biofuels and the raw materials used in their production shall be indicated.

5. The sustainability of certified biofuels will be analysed.

Article 16. Regime of infringements and penalties.

In the event of non-compliance with the obligations provided for in this order, the sanctioning regime provided for in Title VI of Law 34/1998 of 7 October of the hydrocarbon sector shall apply.

CHAPTER V

Mixtures of biofuels

Article 17. Mixtures of biofuels.

1. Mixtures of biofuels with fossil fuels must be carried out with appropriate technical conditions and using equipment to ensure their quality and homogeneity, and to determine their content in biofuels and compliance with the requirements. specifications.

2. Without prejudice to the provisions of the tax legislation, in the case of products which do not require specific labelling as biofuels as laid down in Article 8 (4) of Royal Decree 61/2006 of 31 January, the mixtures only may be made in factories or tax warehouses.

3. Wholesale operators of petroleum products shall inform distributors and other operators wholesale of the supply of the biofuel content of each product they supply, expressed as a percentage of the volume of the product total. This information shall not be valid for the purposes of the accreditation provided for in Article 7 of this order.

Article 18. Mixtures with specific labelling.

1. For the marketing of products with specific labelling as biofuels, in accordance with the provisions of Royal Decree 61/2006 of 31 January, distribution equipment adapted for this purpose must be used and incorporated into the same or in its vicinity the following announcements:

a) In case of biofuels for petrol engines: "Before using this product make sure that it is fit for your engine".

b) In case of biofuels for use in diesel engines "Before using this product make sure that it is fit for your engine".

2. Suppliers of products labelled as biofuels should inform final consumers about the content of biofuels for products. This information shall not be valid for the purposes of the accreditation provided for in Article 7 of this order.

Single transient arrangement. Compensatory payments and accreditation in 2008.

1. Payments and infringements referred to in Articles 11 and 16 of this order may only be imposed or punished with respect to non-compliances relating to the years 2009 and following.

2. The obligations set out in Article 7 of this order, in relation to the accreditation of sales and consumption, shall apply from 1 January 2009.

Final disposition first. Competence title.

This order is dictated by the provisions of Article 149.1.13. and the 25th of the Constitution, which attributes to the State exclusive competence on bases and coordination of the general planning of economic activity and bases of energy regime.

Final disposition second. Execution and application.

1. The General Secretariat of Energy shall adopt resolutions requiring the implementation and enforcement of this order.

2. The National Energy Commission shall issue the necessary circulars in compliance with its functions as a certification body, and in particular for the following:

a) Determine the detailed procedure for certification.

(b) to provide for the notification procedure referred to in Article 12, the procedure for the transfer of certificates to the following year and the transfer of certificates between subjects, as well as the transfer of certificates between subjects; cancellation of certificates.

(c) Establish the procedure for the settlement of amounts collected as a fund for compensatory payments, including, where appropriate, interest on late payment.

Final disposition third. Authorisation for amendment of the Annex.

The General Secretariat of Energy is authorized to modify the contents of the Annex of this order, in accordance with the evolution of the Community legislation and the market for biofuel. Other biofuels of those listed in Article 2 (2) of this order may also be included in the Annex.

Final disposition fourth. Entry into force.

This order shall enter into force on the day following that of its publication in the "Official State Gazette".

Madrid, October 9, 2008. -Minister of Industry, Tourism and Trade, Miguel Sebastian Gascón.

ANNEX

Calculation of the oil equivalent tonnes of different biofuels

1. The energy content of biofuels for transport purposes, in tonnes of oil equivalent (tep), which may be certified for each type of biofuel shall be calculated by applying the energy content per unit of volume, which is indicated in the following table, to the volumes that are determined by the Certification Entity:

Fuel

Bioethanol

0.5074

Tep/m3
	0.7694
Gas oil	0.8585
Biomethanol	0.3740
0.6250
0.5074
BioETBE	0.6423
Biodiesel	0.7894
Vegetable Oil	0.8290
BioDME	0.4529
Biohydrogen	0.0003

2. For the calculation of the aforementioned volumes, the volumetric fraction of the bioETBE that will be computed as biofuel will be 47 percent, and that of the bioMTBE will be 36 percent.