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Translation validity: 15.04.2005.–08.05.2006.
Amendments not included: 06.04.2006.
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The Saeima1 has adopted
and the President has proclaimed the following Law:
Section 1. Terms Used in this
The following terms are used in this Law:
1) biofuel - liquid or gaseous fuel used in internal
combustion engines, which is produced from biomass;
2) trade in biofuel - any activities with biofuel (the
production and processing of raw materials, as well as the
production, marking, storage, transportation, import, export,
distribution, marketing, disposal etc. of biofuel), as well as
the provision of information to consumers;
3) biomass - the biodegradable fraction of products,
waste and residues from agriculture (including vegetal and animal
substances), forestry and related industries, as well as the
biodegradable fraction of industrial and municipal waste;
4) biodiesel - a methyl-ester or ethyl-ester that is
produced from vegetable or animal oil, which has diesel fuel
qualities and which may be utilised as fuel in internal
5) bioethanol - ethanol that is produced from biomass
or the biodegradable fraction of waste, to be utilised in the
production of fuel; and
6) biogas - a gas that is produced from biomass or from
the biodegradable fraction of waste and that can be purified to
such quality as to be utilised as fuel or woodgas.
Section 2. Purpose of this Law
The purpose of this Law is to promote the trade in biofuel,
thereby supporting the utilisation of environmentally friendly
and safe in supply renewable energy resources.
Section 3. Scope of Application of
This Law prescribes:
1) the guiding principles of the State policy regarding the
trade in biofuel, also biodiesel and biogas;
2) the competence of institutions involved in the trade in
3) the State assistance for the production of biofuel;
4) the rights, duties and the liability of persons involved in
the trade in biofuel; and
5) the procedures for the provision of information to biofuel
Competence of State Authorities and Local Governments
Section 4. Competence of the
(1) The Cabinet shall:
1) implement the State policy regarding the trade in biofuel
in accordance with the provisions of this Law;
2) in submitting a draft of the annual State budget law to
Saeima, provide the financing necessary for the attainment of the
objectives of this Law;
3) specify the measures which would ensure that biofuel
comprises not less than 2 per cent of the total amount of fuel
existing in the national economy intended for transport by 31
December 2005, but by 31 December 2010 - not less than 5.75 per
4) specify the procedures for the utilisation of other
renewable energy resources produced from biomass;
5) each year prepare information regarding the amount of
biofuel produced, imported, as well as marketed in Latvia and
exported from Latvia in the previous calendar year;
6) evaluate the economic efficiency of biofuel in comparison
to the average indicators of the European Union;
7) aggregate information regarding the development of biofuel
market and the provision thereof with raw materials in the
previous reference period;
8) prepare and submit a report to the European Commission
regarding the measures of biofuel introduction and trade in
(2) delegate the fulfilment of the tasks specified in
Paragraph one, Clauses 5-8 of this Section to the relevant member
of the Cabinet.
Section 5. Competence of Local
(1) Local governments shall provide incentives to fuel users
within the territory thereof to utilise biofuel and, within the
competence thereof, create favourable conditions for the
production of biofuel and investment in the development of
(2) Local governments shall promote the utilisation of biofuel
in public transport.
Requirements to be Met for Commercial Activities with
Section 6. Biofuel Production and
(1) Persons performing commercial activities with biofuel
shall comply with the regulatory enactments regulating trade in
mineral oil products (fuel) and the procedures for the
application of excise duty.
(2) The Cabinet shall determine:
1) the biofuel quality requirements to be met;
2) the procedures by which conformity assessment of biofuel
and transfer for processing shall be carried out;
3) the procedures by which the production of biofuel and
blending with fossil fuel shall be controlled; and
4) the procedures by which biofuel not conforming to the
quality requirements shall be destroyed.
Section 7. Consumer Information
(1) Biofuel and biofuel blends with fossil fuel, if the amount
of biofuel therein is more than 5 per cent, shall be labelled
with special indications at sales points.
(2) The Cabinet shall specify the procedures by which
consumers shall be informed regarding the content of biofuel
present at sales points and the conformity thereof with the
Promotion of Trade in Biofuel
Section 8. State Assistance
(1) The State assistance shall be granted for the production
of minimum necessary annual amount of biofuel and financial
assistance quotas for the types of biofuel shall be specified in
accordance with the procedures provided for by the Cabinet.
(2) The Cabinet shall specify the deadline by which a report
regarding the State assistance granted in the previous reference
year shall be submitted, as well as the time period and the
procedures by which a calculation of the assistance necessary and
a justification thereof shall be submitted each year.
Section 9. Procedures for the
Payment of Excise Duty and the Receipt of a Guarantee
(1) The Law On Excise Duties prescribes the procedures by
which excise duty shall be imposed on biofuel.
(2) Merchants who have a valid special permit (licence) for
the activities of a tax warehouse-keeper and who produce biofuel
or blend such biofuel with fossil fuel may receive a State
guarantee within the framework of the annual State budget and in
accordance with the procedures specified by the Law On Budget and
(2) If the intended State guarantee may be qualified as
assistance to commercial activity, a receipt of a decision of the
European Commission regarding the compliance of such guarantee
with the Treaty establishing the European Community shall be
necessary prior to the granting of the State guarantee. The State
guarantee shall be provided, observing the conditions of the
decision of the European Commission.
1. The Cabinet shall issue the regulations referred to in
Section 6, Paragraph two and Section 7, Paragraph two of this Law
by 1 May 2005.
2. The Cabinet shall specify the measures by 1 May 2005, which
shall be taken in order to ensure the proportion of biofuel
specified in Section 4, Paragraph one, Clause 3 of this Law in
the total amount of fuel that is intended for transport and
exists in the national economy.
3. The Cabinet shall issue by 1 September 2005 the regulations
that regulate the procedures for the utilisation of the renewable
energy resources produced from biomass referred to in Section 4,
Paragraph one, Clause 4 of this Law.
Reference to European Union Directives
This Law includes the legal norms arising from DIRECTIVE
2003/30/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 8 May
2003 on the promotion of the use of biofuels or other renewable
fuels for transport.
This Law has been adopted by the Saeima on 17 March
Acting for the President,
Chairperson of the Saeima I. Ūdre
Rīga, 1 April 2005
1 The Parliament of the Republic of
Translation © 2006 Tulkošanas un terminoloģijas
centrs (Translation and Terminology Centre)