Saturday, May 28, 2011

Who is obliged to implement National Index Target ? (Biofuels)

According to the Polish Statue of 25 August 2006 on biocomponents and liquid biofuels (Published in the Journal of Laws of 2006 No. 169, position. 1199) various entrepreneurs  involved in fuels business are obliged to implement the so called National Index Target and ensure a minimum share of bio-components and other renewable fuels in the total amount of liquid fuels and liquid fuels sold or otherwise disposed of or used by him for their own use

The Act provides that any company engaged in commercial activities involving the manufacture, import or intra-Community acquisition of liquid fuels or biofuels, which sells or disposes of them in a different form on Polish territory, or for their own consumption is qualified as the so-called “the entity implementing the National Index Target”.

Such a entrepreneur is required to ensure a minimum share of bio-components and other renewable fuels in the total amount of liquid fuels and liquid fuels sold or otherwise disposed of or used by him for their own use.

The minimum contribution shall be calculated according to the calorific value of various bio-components and is equal to the National Target Indicator, as defined by the Council of Ministers by way of regulation. According to the above mentioned decree (Journal of Laws of 2007 No. 110 item. 757) the National Index Target for 2010 is 5.75%.

According to art. Paragraph 33. 1, paragraph 5 of the Act on biocomponents and liquid monetary penalty shall be one who, being an entity pursuing a National Index Target, did not provide in particular year minimum a share of bio-components and other renewable fuels in the total amount of liquid fuels and liquid fuels sold or otherwise disposed
by or used by him for their own use.
The amount of the penalty is calculated using the formula:
K = 5 x W x (M - R) / 100%
where the various symbols mean:
K - the penalty, expressed in money,
W - the total value of liquid fuels and liquid fuels sold or otherwise disposed of by an entity subject to punishment, and used by him for their own use, calculated for the year in which the entity has not carried out its obligations under Article. Paragraph 23. 1, expressed in money,
M - level of the National Index, which was required to implement entity subject to the penalty, expressed as a percentage,
R - Average realized biocomponent and other renewable fuels in the total amount of liquid fuels and liquid fuels sold or otherwise disposed of by an entity subject to punishment, and used by him for their own use in the year in which this entity has not carried out its obligations under Article . Paragraph 23. 1, expressed as a percentage.


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