Renew able Transport Fuel Obligation: consultation 2 0 0 7 Rupert Furness, Department for Transport Rupert Furness, Department for Transport March 2007 March 2007
Background • RTFO due to start in April 2008 • RTFO due to start in April 2008 • Energy Act 2004 contained broad enabling powers, but all detail • Energy Act 2004 contained broad enabling powers, but all detail to be set out in secondary legislation (ie the RTFO Order 2007) to be set out in secondary legislation (ie the RTFO Order 2007) • Consultation seeks views on • Consultation seeks views on • detail of RTFO Order, ie how the scheme will operate from • detail of RTFO Order, ie how the scheme will operate from April 2008; and April 2008; and • long-term evolution of RTFO • long-term evolution of RTFO
RTFO consultation pack • Three main sections: • Three main sections: • Covering consultation paper seeking views on: • Covering consultation paper seeking views on: • Detailed design of scheme • Detailed design of scheme • Longer term evolution of RTFO • Longer term evolution of RTFO • Partial Regulatory Impact Assessment • Partial Regulatory Impact Assessment • Draft RTFO Order • Draft RTFO Order • Deadline for comments 17 May 2007, but earlier responses • Deadline for comments 17 May 2007, but earlier responses welcomed and proactive engagement with stakeholders welcomed and proactive engagement with stakeholders throughout consultation period. throughout consultation period.
Schem e design – som e key issues • Definition of obligated supplier • Definition of obligated supplier • Plan A versus Plan B – preference for plan B, but issue finely • Plan A versus Plan B – preference for plan B, but issue finely balanced and still open to arguments balanced and still open to arguments • Level of Obligation • Level of Obligation • Set as percentage of fossil fuel sales – which leads to • Set as percentage of fossil fuel sales – which leads to levels of 2.5641%, 3.8961% and 5.2632% in first three levels of 2.5641%, 3.8961% and 5.2632% in first three years years
Schem e design – som e key issues • Monthly and annual reporting requirements, both on fossil fuels • Monthly and annual reporting requirements, both on fossil fuels and on biofuels and on biofuels • Data requirement from obligated and non-obligated • Data requirement from obligated and non-obligated companies companies • Compliance costs • Compliance costs • Whether HMG could do more to ensure sustainability of • Whether HMG could do more to ensure sustainability of biofuels biofuels
Long term future: key issues • Linking RTF certificates to carbon saving and/or minimum • Linking RTF certificates to carbon saving and/or minimum sustainability standards: how and when? sustainability standards: how and when? • Future RTFO targets: nature, level and timing • Future RTFO targets: nature, level and timing • Impacts of RTFO on other sectors (food, oleochemicals) • Impacts of RTFO on other sectors (food, oleochemicals) • What more might/should HMG do to support “advanced” • What more might/should HMG do to support “advanced” biofuels and/or use of high blend biofuels (E85 etc)? biofuels and/or use of high blend biofuels (E85 etc)?
Next steps • Will be discussing key issues with stakeholders between • Will be discussing key issues with stakeholders between now and May 17. now and May 17. • Stakeholder workshops at DfT on 21 and 22 March will • Stakeholder workshops at DfT on 21 and 22 March will focus on part 1 of the consultation (ie detailed scheme focus on part 1 of the consultation (ie detailed scheme design) design) • Further stakeholder workshop to consider broader issues • Further stakeholder workshop to consider broader issues raised by part 2 of the consultation on Tuesday 24 April raised by part 2 of the consultation on Tuesday 24 April
Next steps ( cont) • After May 17, will make any necessary amendments to • After May 17, will make any necessary amendments to RTFO Order and get final draft to the various Parliamentary RTFO Order and get final draft to the various Parliamentary scrutiny Committees. scrutiny Committees. • Ministers may also make an announcement on long-term • Ministers may also make an announcement on long-term nature of RTFO nature of RTFO • RTFO Order to be laid in Parliament and debated in • RTFO Order to be laid in Parliament and debated in Commons and Lords in autumn. Commons and Lords in autumn.
Conclusions • Interested to hear initial views today on any of the issues • Interested to hear initial views today on any of the issues raised in the consultation paper and/or the process. raised in the consultation paper and/or the process. • Strongly encourage LowCVP members to submit formal • Strongly encourage LowCVP members to submit formal written responses to consultation as soon as possible, by written responses to consultation as soon as possible, by email to rtfo.consultation@dft.gsi.gov.uk. email to rtfo.consultation@dft.gsi.gov.uk. • Also encourage LowCVP members to visit our website • Also encourage LowCVP members to visit our website (http://www.dft.gov.uk/roads/rtfo ) and subscribe to our (http://www.dft.gov.uk/roads/rtfo ) and subscribe to our newsletters. newsletters.
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