Regulations Regarding Requirements for Biofuel Quality, Conformity Assessment, Market Supervision and Procedures for Consumer Information

Issued pursuant to
Section 6, Paragraph two, Section 7, Paragraph
of the Biofuel Law and
Section 7 of the
Law On Conformity Assessment

I. General Provisions

1. These Regulations prescribe:

1.1. the quality requirements for biofuel;

1.2. the procedures by which the conformity assessment of biofuel and the transfer thereof for processing shall be carried out;

1.3. the procedures by which the production of biofuel and blending thereof with fossil fuel shall be controlled;

1.4. the procedures by which biofuel not conforming to quality requirements shall be destroyed; and

1.5. the procedures by which consumers shall be informed regarding the content of biofuel present at points of sale and the conformity thereof with quality requirements.

2. In Latvia it is permitted to sell the following biofuel to be used in internal combustion engines and such blends of biofuel with fossil fuel which comply with the requirements specified in Chapter II of these Regulations:

2.1. biodiesel;

2.2. unleaded petrol to which dehydrated (alcohol strength by volume of at least 99,5 per cent) and denatured bioethanol if the content of absolute ethanol is 4,5 to 5 per cent by volume of the total petrol volume;

2.3. diesel fuel (gas oil) to which biodiesel in the amount of 5 per cent by volume of the total volume of the end product has been added;

2.4. diesel fuel (gas oil) to which biodiesel in the amount of 30 per cent by volume of the total volume of end product has been added.

II. Quality Requirements for Biofuel and the Blending Thereof with Fossil Fuel and Procedures for Conformity Assessment

3. The quality requirements for the product referred to in Sub-paragraph 2.1 of these Regulations shall comply with the standard LVS EN 14214:2005, Automotive Fuels - Fatty and Methyl Esters (FAME) for Diesel Engines - Requirements and Test Methods (Annex 1).

4. The quality requirements for the product referred to in Sub-paragraph 2.2 of these Regulations shall be specified in regulatory enactments regarding conformity assessment of petrol.

5. The quality requirements for the product referred to in Sub-paragraph 2.3 of these Regulations shall be specified:

5.1. in Annex 2 of these Regulations if biofuel that is not obtained from rapeseed oil is added to diesel fuel (gas oil);

5.2. regulatory enactments regarding conformity assessment of petrol and diesel fuel if biofuel that is completely obtained from rapeseed oil is added to diesel fuel (gas oil).

6. The quality requirements for the product referred to in Sub-paragraph 2.4 of these Regulations shall be specified in Annex 3.

7. A document issued by a conformity assessment institution which is accredited by the State Agency Latvian National Accreditation Bureau in accordance with the standard LVS EN/ISO IEC 17025:2005, General Requirements for the Competence of Testing and Calibration Laboratories, or any other institution of European Union Member State regarding which the Ministry of Economics has published an announcement in the newspaper Latvijas Vēstnesis [the official Gazette of the Government of Latvia] shall confirm the compliance of the products referred to in Paragraph 2 of these Regulations to quality requirements. Parameters referred to in Paragraphs 3, 4, 5 and 6 of these Regulations and information regarding the quantity of bioethanol or biodiesel present (added) in fuel shall be indicated by percentage in the referred to documents.

8. In the document referred to in Paragraph 7 of these Regulations which confirms the compliance of the product with quality requirements, in the winter period (from 1 November to 31 March) addition information regarding the climatic class or category shall be indicated:

8.1. the product referred to in Sub-paragraph 2.1 of these Regulations - in accordance with the standard LVS EN 14214:2005, Automotive Fuels - Fatty and Methyl Esters (FAME) for Diesel Engines - Requirements and Test Methods;

8.2. the products referred to in Sub-paragraph 2.3 and 2.4 of these Regulations - in accordance with the standard LVS EN 590:2005, Automotive Fuels - Diesel - Requirements and Test Methods.

9. The cetane number for the products referred to in Sub-paragraph 2.1, 2.3 and 2.4 of these Regulations determined using the method specified in the standard LVS EN ISO 5165:2002, Petroleum Products - Determination of the Ignition Quality of Diesel Fuel - Cetane Engine Method shall not be less than 51.

10. In the winter period (from 1 November to 31 March) the cetane number for the products referred to in Sub-paragraphs 2.3 and 2.4 of these Regulations shall not be less than 47.

11. Parameters for the products referred to in Paragraph 2 of these Regulations shall be determined by testing such products and interpreting the results in accordance with the standard LVS EN ISO 4259:2000, Petroleum Products - Determination and Application of Precision Data in Relation to Test Methods .

12. A manufacturer of biodiesel shall ensure the quality of the biodiesel in accordance with the requirements of the standard LVS EN 14214:2005, Automotive Fuels - Fatty and Methyl Esters (FAME) for Diesel Engines - Requirements and Test Methods.

III. Manufacturing of Biofuel, Blending with Fossil Fuel, Circulation and Procedures for Control

13. Biofuel shall be manufactured, blended with fossil fuel (petroleum products) and processed, as well as brought into the market of Latvia from European Union Member States in accordance with the Law On Excise Duties and regulatory enactments regarding the procedures for circulation of excisable goods.

14. In order to receive a supporting document, the tax warehouse keeper shall take for sampling at least one litre of the product in accordance with the Standard LVS EN ISO 3170:2004, Petroleum Liquids - Manual Sampling, from a tank in which the products referred to in Paragraph 2 of these Regulations are stored, affix a seal on the packaging of the sample and submit such sample to the conformity assessment institution referred to in Paragraph 7 of these Regulations.

15. The tax warehouse keeper shall ensure that during the taking of the sample, as well as during the time period when the products referred to in Paragraph 2 of these Regulations are supplied to users, other products are not placed into the relevant tank. If the products referred to in Paragraph 2 of these Regulations or other substances are placed in the tank, the previously issued supporting document referred to in Paragraph 7 of these Regulations shall become invalid, and the tax warehouse keeper shall be required to have a new supporting document in order to supply the relevant products to users. Prior to refilling of the tank with the products referred to in Paragraph 2 of these Regulations, the tax warehouse keeper shall inform the State Revenue Service in writing regarding the performance of the referred to activity no later than two working days before the activity.

16. In order to ensure the implementation of the requirements referred to in Paragraphs 14 and 15 of these Regulations, a tax warehouse keeper shall co-ordinate the procedures for sample taking with the State Revenue Service.

17. The sample of the products referred to in Paragraph 2 of these Regulations shall be taken and the packaging of the sample shall be sealed in the presence of the responsible official of the State Revenue Service.

18. Prior to refilling of the tank with the products referred to in Paragraph 2 of these Regulations, the responsible official of the State Revenue Service is entitled to examine the compliance of the actual remaining product quantity with the quantity indicated in accounting documents.

19. A merchant may also blend the products referred to in Sub-paragraphs 2.2, 2.3 and 2.4 of these Regulations by using the method of liquid blending flow if such process is permitted by other regulatory enactments in the field of circulation of excisable goods. The method and the process shall be co-ordinated in advance with the State Revenue Service in writing.

20. A merchant who manufactures the product referred to in Sub-paragraph 2.1 of these Regulations shall no later than two working days before the taking of sample referred to in Paragraph 17 of these Regulations inform the State Revenue Service in writing regarding the place, date, time of sample taking and the quantity of product from which the sample will be taken.

21. Manufacturing the products referred to in Paragraph 2 of these Regulations, a manufacturing deed shall be drawn up in accordance with the regulatory enactments regarding the procedures for circulation of excisable goods. In addition, the following shall be indicated in the deed:

21.1. the national additional code of integrated tariff of the community for raw materials (TARIC);

21.2. information regarding the origin of the raw materials (for example, from rape seed oil, from other agricultural products). If biofuel is used as a raw material, additional information regarding the concentration of biofuel present shall be indicated in percentage form;

21.3. TARIC national additional code of the end product. If biofuel is blended with fossil fuel, the quantity of biofuel is shown as a percentage of the total quantity of the end product.

22. Transferring and selling the products referred to in Paragraph 2 of these Regulations, in accordance with regulatory enactments regarding circulation of excisable goods a bill of lading-invoice for petroleum products (fuel) shall be written out, indicating in addition:

22.1. national additional code TARIC;

22.2. quantity of biodiesel or bioethanol as a percentage of the total quantity of fuel;

22.3. the number and date of issue of a test report or a certificate from an accredited laboratory. A copy of the referred to certificate, which is confirmed by a seal of the issuer of the bill of lading-invoice and the signature of the responsible person, shall be attached to the bill of lading-invoice.

23. The quantity of biodiesel and bioethanol that has already been manufactured and for which it is intended to receive a supporting document shall be indicated in the accounting of the goods of the tax warehouse in accordance with regulatory enactments regarding the circulation of excisable goods.

24. National additional code TARIC shall be indicated in the accounting of the goods of the products referred to in Paragraph 2 of these Regulations in addition to the requirements specified by regulatory enactments regarding the circulation of excisable goods.

25. The products referred to in Paragraph 2 of these Regulations shall be stored, accounted for and sold separately from other petroleum products.

26. The products referred to in Paragraph 2 of these Regulations with a different percentage of biofuel shall be stored, accounted for and sold separately if, as the result, the quality requirements for the product change.

IV. Market Supervision

27. Market supervision of the products referred to in Paragraph 2 of these Regulations shall be carried out by the State Revenue Service, the State Police and the Consumer Rights Protection Centre (hereinafter - supervisory institutions) in accordance with competence thereof.

28. Supervisory institutions that carry out the market supervision within their competence in accordance with regulatory enactments shall submit to the State Revenue Service information regarding determined infringements once a month. If the State Revenue Service needs additional information for ensuring market supervision, such information shall be provided upon the written request of the State Revenue Service.

29. A merchant involved in the circulation of the products referred to in Paragraph 2 of these Regulations upon the request of the supervisory institution shall present the quality confirming document referred to in Paragraph 7 of these Regulations.

30. Each year by 15 May the State Revenue Service shall submit to the Ministry of Economics information regarding the sales of the products referred to in Paragraph 2 of these Regulations in the State in the preceding year.

31. A merchant involved in the circulation of the products referred to in Paragraph 2 of these Regulations shall be responsible for compliance with the requirements referred to in these Regulations.

32. All expenses related to the supervision of compliance for the products referred to in Paragraph 2 of these Regulations shall be covered from the resources of the institutions that carried out the supervision. If it has been determined that products do not comply with quality requirements specified in these Regulations, the relevant expenses shall be covered by the owner or possessor of these products.

V. Procedures for Consumer Information

33. In wholesale locations of the products referred to in Paragraph 2 of these Regulations on tanks, in which the referred to products are stored (in retail trade locations on technological installation of filling station (on fuel dispenser)) an informative sign shall be attached on which the following information shall be indicated clearly and visibly:

33.1. a sign "Biodegviela" [biofuel] (the sign is not required if blending of biodiesel or bioethanol with fossil fuel does not exceed 5 per cent by volume of the total quantity of end product);

33.2. the quantities of biodiesel or bioethanol blend as percentages;

33.3. compliance with climatic class (indicated in winter period).

34. A retail trader of fuel shall indicate in the informative sign that internal combustion engines that are designed or later adjusted for usage of biofuel or biofuel blending are required for the use of the products referred to in Sub-paragraphs 2.1 and 2.4 of these Regulations.

35. In each stage of the circulation of the products referred to in Paragraph 2 of these Regulations, including in retail trade locations, the relevant document confirming the quality of biofuel or biofuel blending or a copy thereof shall be required. Retail trader of fuel shall present the referred to document upon the request of consumer.

VI. Procedures for Processing or Disposal of Biofuel or Blend of Biofuel with Fossil Fuel not Complying with the Quality Requirements

36. If a merchant or supervisory institution determines that a biofuel or a biofuel blend does not comply with the quality requirements specified in these Regulations, it shall be disposed of or given over for processing in order to obtain a product complying with the quality requirements or used as a heating fuel for the production of heat energy.

37. Costs of transport and disposal of biofuel or biofuel blend not complying with the requirements of these Regulations shall be covered by the owner or possessor thereof.

38. A merchant who can ensure the presence of combustion products in high temperature for a sufficient period of time in order to divide macromolecular hydrocarbons shall be permitted to dispose of bioethanol, denatured bioethanol and the products referred to in Paragraph 2 of these Regulations.

39. Disposal of the products referred to in Paragraph 2 of these Regulations shall be co-ordinated with the State Revenue Service, the relevant regional environmental board of the State Environmental Service and the relevant local government (the place and time of disposal). Bioethanol and denatured bioethanol shall be disposed of in storage places thereof or in places indicated by the regional environmental board or local government in accordance with regulatory enactments and standards determining the requirements for environmental quality.

40. All expenses related to the supervision of compliance for the products referred to in Paragraph 2 of these Regulations shall be covered from the resources of the institutions, which carried out the supervision. If it has been detected that products do not comply with quality requirements specified in these Regulations, the relevant expenses shall be covered by the owner or possessor of these products.

VII. Closing Provisions

41. Until 1 January 2008 the maximum sulphur content in diesel fuel to which biodiesel has been added and which it is intended to be used in off-road mobile machinery, agricultural and forestry tractors shall not exceed 2000 mg/kg of the mass of the diesel fuel. There shall be a relevant sign in a sales location regarding such information.

42. Annex 1, Paragraph 15 of these Regulations shall come into force from 1 July 2006.

43. The quality requirements referred to in Annex 1 of these Regulations for diesel fuel regarding phosphorus content shall not be applicable to biodiesel obtained from rapeseed oil.

Informative Reference to European Union Directives

These Regulations contain legal norms arising from:

1) Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels and other renewable fuels for transport;

2) Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC;

3) Directive 2003/17/EC of the European Parliament and of the Council of 3 March 2003 amending Directive 98/70/EC relating to the quality of petrol and diesel fuels (text with EEA relevance).

Prime Minister A. Kalvītis

Minister for Economics A. K. Kariņš

Annex 1
Cabinet Regulation No. 772
18 October 2005

Quality Requirements for Biodiesel

Notes.

⁽¹⁾ In case of dispute the standard LVS EN LVS EN 14078 shall be used for determination of ester content.

⁽²⁾ In case of dispute the standard LVS EN ISO 3675 shall be used in determining density at the temperature of 15 ^oC.

⁽³⁾ In case of dispute the standard LVS EN 20884 shall be used for determination of sulphur content.

⁽⁴⁾ In case of dispute the standard LVS EN 14105 shall be used for determination of free glycerine.

⁽⁵⁾ Quality requirements for phosphorous content do not apply to biodiesel acquired from rapeseed oil.

Minister for Economics A. K. Kariņš

Annex 2
Cabinet Regulation No. 772
18 October 2005

Quality Requirements for Diesel Fuel (Gas Oil) to Which Biodiesel is Added (5 Per cent by Volume of the Total Volume of Petroleum Products)

Notes.

⁽¹⁾ In the case of dispute the standard LVS EN LVS EN 14078 shall be used for determination of ester content.

⁽²⁾ In the case of dispute the standard LVS EN ISO 3675 shall be used in determining density at the temperature of 15 ^oC.

⁽³⁾ In the case of dispute the standard LVS EN 20884 shall be used for determination of sulphur content.

Minister for Economics A. K. Kariņš

Annex 3
Cabinet Regulation No. 772
18 October 2005

Quality Requirements for Diesel Fuel (Gas Oil) to Which Biodiesel is Added (30 Per cent by Volume of the Total Volume of Petroleum Products)

Notes.

⁽¹⁾ In the case of dispute the standard LVS EN LVS EN 14078 shall be used for determination of ester content.

⁽²⁾ In the case of dispute the standard LVS EN ISO 3675 shall be used in determining density at the temperature of 15 ^oC.

⁽³⁾ In the case of dispute the standard LVS EN 20884 shall be used for determination of sulphur content.

Minister for Economics A. K. Kariņš

Translation © 2006 Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre)