Biofuel quota (National Indicative Target)
Updated: 10.01.2019
Author: Krzysztof Ignaciuk
The Act on Biocomponents and Liquid Biofuels obliges producers, importers and suppliers of fuels to meet a defined quota of biofuels. The act introduces the national indicative targets (NCW), i.e. annual minimum percentages of biofuels and other renewable fuels in the total amount of liquid fuels. The NCW levels are determined every three years for a period of 6 years by the Council of Ministers.
Eligible technologies
The obligation applies to biofuels and biohydrogen only (Art. 2 par. 1 No. 11 Act on Biocomponents and Liquid Biofuels).
Biocomponents supplied or used to produce fuels must meet quality requirements as evidenced by certification from accredited certification bodies (Art. 22 par. 1 Act on Biocomponents and Liquid Biofuels).
| Biofuels | The following biocomponents are eligible: - bioethanol
- bio-methanol
- biobutanol
- ester
- dimethyl ether
- pure vegetable oil
- bio liquid hydrocarbons
- bio propane-butane
- liquefied biomethane
- compressed biomethane and biohydrogen, which are produced from biomass for use in the manufacture of liquid fuels or biofuels (Art. 2 par. 1 No. 3 Act on Biocomponents and Liquid Biofuels).
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| Hydrogen | Biohydrogen is eligible (Art. 2 par. 1 No. 11c Act on Biocomponents and Liquid Biofuels). |
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Amount
| Amount of quota and period of application | The obliged companies have to ensure that biofuels make up a certain percentage of the company’s total annual sale or consumption of fuel (Art. 23 par. 1 Act on Biocomponents and Liquid Biofuels). The following quotas have been set for the period from 2013 to 2018 (Art. 7 Act of 30 November 2016): - 2017 - 7.10%
- 2018 - 7.50%
- 2019 - 8.00%
- 2020 - 8.50%
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| Adjustment of quotas | Every 3 years by 15 June, the Council of Ministers shall determine, by regulation, the National Indicative Targets for the next six years, taking into account the technical manufacturing conditions (Art. 24 par. 1 Act on Biocomponents and Liquid Biofuels). The Council of Ministers will determine NCWs on 15 June 2019 (Art. 8 Act of 30 November 2016; normally regulated under Regulation on the National Indicative Targets ).
The Council of Ministers may, by regulation, lower the amount of quota obligation in the event of extraordinary market events leading to changing conditions of supply of agricultural raw materials or biomass (Art. 24 par. 2 Act on Biocomponents and Liquid Biofuels). |
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| Fees and penalty charges | Failure to fulfil the quota results in a penalty, (Art. 33 par. 1 No. 5 Act on Biocomponents and Liquid Biofuels). The amount of the penalty is calculated using a formula described in Art. 33 par. 5 Act on Biocomponents and Liquid Biofuels. If the NCW is met at 85%, the remaining part of the target quota may be met by paying a substitution fee (Art. 23 1b Act on Biocomponents and Liquid Biofuels). |
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Addressees
All companies which produce, import, supply or use fuels for their own purposes are obliged to meet the biofuels quota (Art. 23 par. 1 in conjunction with Art. 2 par. 1 No. 25 Act on Biocomponents and Liquid Biofuels).
Procedure
Process flow | The obliged company sends an annual report to the president of the Energy Regulatory Office within 90 days after the end of the calendar year as evidence for the fulfilment of the obligation (Art. 30b par. 1 Act on Biocomponents and Liquid Biofuels). |
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Competent authority | Energy Regulatory Office (Urząd Regulacji Energetyki) |
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Distribution of costs
| Consumers | The costs are borne by the consumers. |
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Poland
