Key Benefits:
The additional sixteenth provision of Law 34/1998, of 7 October, of the hydrocarbon sector, sets annual targets for biofuels and other renewable fuels for transport purposes until 2010. These objectives express minimum energy content of biofuels and other renewable fuels in relation to gasoline and gas oils marketed for transport purposes.
Subsequently, Royal Decree 459/2011 of 1 April, setting the mandatory targets for biofuels for the years 2011, 2012 and 2013, points to annual targets for the consumption and sale of global biofuels, as per product in that period. For its part, the Royal Decree-Law 4/2013 of 22 February, of measures to support the entrepreneur and to stimulate growth and job creation, updated the minimum mandatory target for the sale or consumption of biofuels for 2013, setting such values for successive years.
In the additional 16th provision mentioned above is enabled to the Ministry of Industry, Tourism and Commerce, currently Ministry of Industry, Energy and Tourism, prior to the report of the Government Delegation for the Economic, to dictate the provisions necessary to regulate a mechanism to promote the incorporation of biofuels and other renewable fuels, aimed at achieving the objectives established. Under this enablement, in Order ITC/2877/2008 of 9 October establishing a mechanism for the promotion of the use of biofuels and other renewable fuels for transport purposes, a certification and payment system is regulated. compensatory measures, which serve as a mechanism for controlling the obligation. Article 11 of this order provides, in turn, that the persons who are obliged to not have sufficient certificates for the fulfilment of their obligations shall be subject to compensatory payments and that the revenue generated by the this concept will be shared among the subjects with excess certificates.
For the calculation of the amount of these payments, a series of formulas and parameters are defined and, in Article 11 (4) itself, the Secretary of State for Energy is entitled to update the values set out in that Article in accordance with the evolution of the biofuels market.
Article 50 of Law 38/1992, of 28 December, of Special Taxes, regulates a special tax rate for biofuels of zero euros per 1000 liters, with effect until 31 January 2012. However, the additional 20th of Law No 2/2012 of 29 June 2012 of the State Budget for the year 2012 amends Article 50 of the Law No 38/1992 of 28 December 1992 explicitly stating that from 1 January 2012, the January 2013, the general state tax rate applicable to bioethanol and biomethanol for use as fuel shall be EUR 400,69 per 1,000 litres and that applicable to biodiesel for use as fuel of EUR 307 per 1,000 litres. As a result, from 1 January 2013, the zero rate of excise duty on biofuels will be eliminated, which will lead to an increase in the cost of incorporating these products into fossil fuels.
The purpose of this resolution is to update, for the calculation of compliance with the regulated objectives from 2013 inclusive, the values of the parameters αG, αD, αT and ß contained in the aforementioned Article 11 of the Order ITC/2877/2008 of 9 October.
The objective is that the value of the compensation payments will be sufficient for the obligors to meet the objectives of consumption and sale of regulated biofuels but at the same time do not entail a cost disproportionate to those subjects who do not achieve all of these objectives.
In accordance with the provisions of the second paragraph of Article 11 (1), second function of Law 34/1998 of 7 October, of the hydrocarbon sector, the National Energy Commission has issued a number of 2/2013, of 7 February. In addition, the process of hearing the interested parties has been carried out through the Hydrocarbons Advisory Council, whose comments and comments, in accordance with the provisions of the 5.5 of Royal Decree 1339/1999 of 31 July 2001, approves the regulation of the National Energy Commission, have been taken into consideration for the elaboration of the aforementioned report of the National Energy Commission.
By virtue of the above and in use of the enablement conferred by Article 11.4 of Order ITC/2877/2008 of 9 October 2008, this Secretary of State for Energy resolves:
First. Updating settings.
For the calculation of the compensatory payment to be made by the obligated subject in the year n (PCin) and for the calculation of the payment from the compensatory payments fund of the obligated subject in year n (PFCin), according to the Article 11 of Order ITC/2877/2008 of 9 October 2008 shall apply from the year 2013 inclusive the following values:
a) αG: is a value of 763 €/biofuel certificate in gasoline.
b) αD: is a value of 763 €/biofuel certificate in diesel.
c) αT: is a value of 763 €/certificate.
d) ß: is a maximum value of 763 €/certificate.
Second. Effectiveness.
This resolution shall have effect from the day following that of its publication in the "Official State Gazette".
Against this resolution, the Minister of Industry, Energy and Tourism may appeal to the Minister of Industry, Energy and Tourism within one month, in accordance with the provisions of Law No 30/1992 of 26 November 1992 on the legal system of Public Administrations and the Common Administrative Procedure.
Madrid, July 8, 2013. -Secretary of State for Energy, Alberto Nadal Belda.
