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Parliament plans to consider in the second reading a draft law on the use of biofuels in the transport sector

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The Verkhovna Rada of Ukraine plans to consider in the second reading a draft law on the creation of a regulatory framework for the development of the production, circulation and use of liquid biofuels in transport. This was reported by UNN with reference to the agenda and draft law 3356-d. 

Details

The Draft Law "On Amendments to Certain Legislative Acts of Ukraine on the Mandatory Use of Liquid Biofuels (Biocomponents) in the Field of Transport" provides for the implementation of the provisions of the Directive of the European Parliament and the Council of the EU on the promotion of the use of energy produced from renewable sources.

It is noted that Ukraine assumed the relevant obligations regarding the share of energy from renewable sources in the gross final energy consumption in transport upon joining the Energy Community.

In particular, the draft law proposes:

  • to determine the mandatory content of liquid biofuels (biocomponents) in all volumes of motor gasoline sold from fuel production sites, fuel wholesale and fuel retail sites, except for gasoline with an octane rating of 98 and above and gasoline supplied for the needs of the Ministry of Defense, the State Reserve and for the creation of minimum stocks of oil and oil products;
  • to introduce accounting of the content of liquid biofuels (biocomponents) in motor fuel and alternative fuel on the petroleum products market, which is entrusted to the central executive body that implements state policy in the areas of efficient use of fuel and energy resources, energy saving, renewable energy sources and alternative fuels (State Agency on Energy Efficiency and Energy Saving).
    It is also stipulated that the Procedure for the said accounting shall be approved by the central executive body responsible for the formation of the state policy in the field of efficient use of fuel and energy resources, energy saving, renewable energy sources and alternative fuels (except for issues of ensuring energy efficiency of buildings and other structures) (the Ministry of Energy);
  • to classify as an offense non-compliance with the requirements for the release of all volumes of motor gasoline containing the normatively defined mandatory share of liquid biofuels (biocomponents) from retail fuel outlets in the customs territory of Ukraine;
  • to classify as an offense non-compliance with the requirements for the release of all volumes of motor gasoline containing the normatively defined mandatory share of liquid biofuels (biocomponents) from the places of production and/or wholesale trade in fuel on the customs territory of Ukraine;
  • to classify as an offense the untimely or failure to provide information on the content of liquid biofuels (biocomponents) in the volumes of motor gasoline sold in the customs territory of Ukraine from the places of production and wholesale trade of fuel

Addendum

The provisions of the draft law are expected to increase tax revenues from Ukrainian business entities in the sector in the medium term as a result of the development of liquid biofuels production.

The authors of the document also noted that the adoption of the law will help bring positive processes in the use of liquid biofuels in Ukraine to a qualitatively new level and increase the workload of distilleries and the production potential of related industries.

The proposed amendments are also expected to create additional jobs, improve the environmental situation by reducing emissions into the atmosphere, and create the preconditions for attracting foreign and domestic investment in the production of liquid biofuels.

Recall

The State Agency on Energy Efficiency and Energy Saving of Ukraine and the Ukrainian Energy Exchange cooperate to create a transparent and competitive biofuel market in Ukraine.

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