LPG and Primary Storage Facilities (Amendment) Regulations,

L.N. 336 of 2021

REGULATOR FOR ENERGY AND WATER SERVICES ACT

(CAP. 545)

Petroleum for the Inland (Wholesale) Fuel Market, Bottling of

LPG and Primary Storage Facilities (Amendment) Regulations,

IN EXERCISE of the powers conferred by article 37 of the

Regulator for Energy and Water Services Act, the Minister for Energy,

Enterprise and Sustainable Development, after consultation with the

Regulator for Energy and Water Services, has made the following

regulations:-

The title of these regulations is the Petroleum for the Inland

(Wholesale) Fuel Market, Bottling of LPG and Primary Storage

Facilities (Amendment) Regulations, 2021 and these regulations shall

be read and construed as one with the Petroleum for the Inland

(Wholesale) Fuel Market, Bottling of LPG and Primary Storage

Facilities Regulations, hereinafter referred to as "the principal

regulations".

Regulation 2 of the principal regulations shall be amended

as follows

(a) immediately after the definition "the Act" there shall

be added the following new definition

" "advanced biofuel" means biofuels that are

produced from the feedstock listed in Part One of the

Eighth Schedule;";

(b) immediately after the definition "final consumer"

there shall be added the following new definition

" "food and feed crop" means starch-rich crops,

sugar crops or oil crops produced on agricultural land as a

main crop excluding residues, waste or lingo-cellulosic

material and intermediate crops, such as catch crops and

cover crops, provided that the use of such intermediate

crops does not trigger demand for additional land; ";

(c) immediately after the definition "inspector" there

shall be added the following new definition

" "ligno-cellulosic material" means material

composed of lignin, cellulose and hemicellulose, such as

biomass sourced from forests, woody energy crops and

forest-based industries' residues and wastes;";

(d) the definitions "MSA EN 228" and "MSA EN 590"

shall be deleted; and

(e) immediately after the definition "service provider"

there shall be added the following new definitions

" "SM EN 228 petrol" means fuel which is compliant

with the requirements and test methods approved and

endorsed by the Malta Competition and Consumer Affairs

Authority in relation to the quality of unleaded petrol for

automotive use;

"SM EN 590 diesel" means fuel which is compliant

with the requirements and test methods approved and

endorsed by the Malta Competition and Consumer Affairs

Authority in relation to the quality of diesel for automotive

use;

"SM EN 14214" means the requirements and test

methods specified by the European Committee for

Standardisation in relation to the quality of fatty acid

methyl esters (FAME) for diesel engines for automotive

use;

"SM EN 15376" means the requirements and test

methods specified by the European Committee for

Standardisation in relation to ethanol as a blending

component for petrol for automotive use;

"SM EN 15940" means the requirements and test

methods specified by the European Committee for

Standardisation in relation to the quality of paraffinic diesel

fuel from synthesis or hydrotreatment for automotive use;

"starch-rich crops" means crops comprising mainly

cereals, regardless of whether the grains alone or the whole

plant, such as in the case of green maize, are used; tubers

and root crops, such as potatoes, Jerusalem artichokes,

sweet potatoes, cassava and yams; and corm crops, such as

taro and cocoyam;".

Regulation 33 of the principal regulations shall be

substituted by the following new regulation

"33. (1) An importer shall release for

consumption to the inland fuel market biofuel amounts

which are to be used as fuel in all forms of transport

which, as a minimum, shall be as provided in the Sixth

Schedule, which amounts shall be calculated in

accordance with the methodology provided in the same

Schedule

Provided that, the aforesaid obligation shall be

incumbent only on the importer who releases for

consumption for excise tax purposes the SM EN 228

petrol and SM EN 590 diesel.

(2) The total amount of biofuels to be released

for consumption to the inland market shall be

calculated using the energy content as listed in the

Seventh Schedule

Provided that for the purposes of sub-

regulations (3) and (4) and the calculation of the energy

content of the substituted biofuels, the energy content of

biofuels produced from the feedstock listed in Part One

and Part Two of the Eighth Schedule shall be

considered to be twice its energy content.

(3) The biofuels shall be released for

consumption to the inland market pre-blended with the

SM EN 228 petrol and, or SM EN 590 diesel, and may

also be released pre-blended with fuel supplied to the

aviation and maritime sectors.

Provided that for the purposes of SM EN 590

diesel, the fatty acid methyl-ester (FAME) shall be in

compliance with SM EN 14214 and the paraffinic diesel

shall be in compliance with SM EN 15940 and that for the

purpose of SM EN 228 petrol, the bioethanol shall be in

compliance with SM EN 15376

Provided further that the supplier shall be

responsible to ensure that the quality of biofuel added to

fuel used for marine and aviation purposes shall be in

accordance with international and commercial standards,

applicable thereto.

(4) Where biofuels are released pre-blended with

fuel supplied to the aviation and maritime sectors, for the

purposes of this regulation and the calculation of the

biofuel amounts as provided for in the Sixth Schedule,

fuel supplied to the maritime sector shall be considered to

be limited to fuel supplied directly by the importer to

vessels engaged in inland and domestic navigation and

fuel supplied to the aviation sector shall be considered to

be that fuel which is supplied in Malta directly by the

importer to aircraft for aviation purposes

Provided that, fuel supplied to the maritime

sector shall only be valid for the calculation of the biofuel

amounts as provided for in the Sixth Schedule only when

the importer is also the holder of a valid authorisation

issued under the Bunkering (Authorisation) Regulations.

(5) The importer referred` to in sub-regulation

(1) shall ensure that the minimum biofuel amounts

released for consumption to the inland market, as

provided for in the Sixth Schedule, are in compliance

with the sustainability criteria set out in regulation 3 of

the Biofuels (Sustainability Criteria) Regulations, and

shall ensure these are audited and verified according to

the provisions of regulation 4 of the same regulations.".

The Sixth Schedule to the principal regulations shall be Substitutes the

substituted by the following new Schedule

"SIXTH SCHEDULE

regulation 33(1)

D

A

B

C

Minimum

Minimum

MAXIMUM

MAXIMUM

biofuel content

advanced biofuel

(%) share of

(%) share of

expressed as a

content expressed

high indirect

biofuels and

percentage

as a percentage

land- use

bioliquids,

amount (%) to be

amount (%) to be

change-risk

where

released to the

released to the

biofuels,

produced

inland market by

inland market by

bioliquids or

from food

the importer of

the importer of SM

biomass fuels

and feed

SM EN 228

EN 228 petrol and,

produced

crops,

petrol and, or

or SM EN 590

from food and

e xpressed as

SM EN 590

diesel calculated in

a percentage feed crops for

diesel calculated

accordance with

amount (%)

which a

in accordance

the methodology in

to be released significant

with the

this Schedule

to the inland expansion of

methodology in

market by the the production

this Schedule

importer of

area into land

SM EN 228

with high-

petrol and, or carbon stock

SM EN 590

is observed,

diesel

e xpressed as a

calculated in

percentage

accordance

amount (%) to

with the

be released to

methodology

the inland

in this

market by the

Schedule

importer of SM

EN 228 petrol

and, or SM EN

590 diesel

calculated in

accordance

with the

methodology

in this

Schedule

% share released

Equal to or less

in 2020 + 1% up

than share of

to a maximum of

such fuels

7%

released in

2019.

5%

0.1%

% share released

Equal to or less

in 2020 + 1% up

than share of

to a maximum of

such fuels

7%

released in

2019.

0%

0.2%

% share released

Equal to or less

in 2020 + 1% up

than share of

to a maximum of

such fuels

7%

released in

2019.

11.0%

0.2%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

11.5%

0.5%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

0%

1.0%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

12.5%

1.5%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

0%

2.0%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

13.0%

2.5%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

13.5%

3.0%

% share released

0%

in 2020 + 1% up

to a maximum of

7%

0%

3.5%

Calculation method

The minimum amounts of biofuel expressed as a percentage

amount (%) which shall be released for consumption in the inland

market pre-blended with the SM EN 228 petrol and, or SM EN 590

diesel, or pre-blended with fuel supplied to the aviation and maritime

sectors, and calculated by the energy content shall be

Where

Energy bio = (a) + (b) + 1.2(c)

And

Energy bioroad = (a) where

(a) Shall be the energy content contribution of biofuels

supplied to the road transport sector;

(b)

Shall be the energy content contribution of biofuels

from food and feed crops supplied to the aviation and maritime

sectors; and

(c) Shall be the energy content contribution of biofuels

not from food and feed crops supplied to the aviation and

maritime sectors;

And where

( * )

The energy contribution arising from feedstocks listed in

Part One and Part Two of the Eighth Schedule shall be considered to

be twice the energy content of said feedstocks.

( + ) Only energy content of SM EN 228 petrol and SM EN 590

diesel used in road transport shall be counted.

The share of energy in fuel released in the inland market by the

importer of SM EN 228 petrol and, or SM EN 590 diesel which shall

be met with biofuels produced from feedstocks listed in Part One of

the Eighth Schedule shall be the number of percentage points indicated

in Column C and shall be calculated as follows

Where

Energy advanced shall be the energy content of biofuels produced

from feedstocks listed in Part One of the Eighth Schedule supplied to

the road transport, aviation and maritime sectors;

Energy bioroad shall be the energy content of biofuels supplied to

the road transport sector;

and where

( + ) Only energy content of SM EN 228 petrol and SM EN 590

diesel used in road transport shall be counted.

This cap shall not apply to fuels types which are identified as

being high indirect land-use change-risk biofuels, bioliquids or

biomass fuels produced from food and feed crops for which a

significant expansion of the production area into land with high-carbon

stock is observed, in line with Commission Delegated Regulation (EU)

2019/807, but which are certified to be low indirect land-use change-

risk biofuels, bioliquids or biomass fuels in line with the provisions of

the same regulation.".

5. The Seventh Schedule to the principal regulations shall be Substitutes the

Seventh

substituted by the following new Schedule

Schedule to the

principal

regulations.

"SEVENTH SCHEDULE

regulation 33(2)

Fuel

Energy

Energy

content by

content by

weight (lower

volume

calorific

(lower

value, MJ/kg)

calorific

value, MJ/l)

FUELS FROM BIOMASS AND/OR BIOMASS PROCESSING

OPERATIONS

Bio-Propane

Pure vegetable oil (oil

produced

from

oil

plants

through pressing, extraction or

comparable procedures, crude

or

refined

but

chemically

unmodified)

Biodiesel - fatty acid

methyl

ester

(methyl-ester

produced from oil of biomass

origin)

Biodiesel - fatty acid

ethyl

ester

(ethyl-ester

produced from oil of biomass

origin)

Biogas

that

can

be

—

purified to natural gas quality

Hydrotreated

(thermochemically treated with

hydrogen) oil of biomass

origin,

to

be

used

for

replacement of diesel

Hydrotreated

(thermochemically treated with

hydrogen) oil of biomass

origin, to be used for

replacement of petrol

Hydrotreated

(thermochemically treated with

hydrogen)

oil

of

biomass

origin,

to

be

used

for

replacement of jet fuel

Hydrotreated

oil

(thermochemically treated with

hydrogen) of biomass origin, to

be used for replacement of

liquefied petroleum gas

Co-processed

oil

(processed in a refinery

simultaneously with fossil fuel)

of

biomass

or

pyrolysed

biomass origin to be used for

replacement of diesel

Co-processed

oil

(processed in a refinery

simultaneously with fossil fuel)

of

biomass

or

pyrolysed

biomass origin, to be used to

replace petrol

Co-processed

oil

(processed in a refinery

simultaneously with fossil fuel)

of

biomass

or

pyrolysed

biomass origin, to be used to

replace jet fuel

Co-processed

oil

(processed in a refinery

simultaneously with fossil fuel)

of

biomass

or

pyrolysed

biomass origin, to be used to

replace liquefied petroleum gas

RENEWABLE FUELS THAT CAN BE PRODUCED FROM VARIOUS

RENEWABLE SOURCES, INCLUDING BIOMASS

Methanol

from

renewable sources

Ethanol from renewable

sources

Propanol

from

renewable sources

Butanol from renewable

sources

Fischer-Tropsch diesel

(a synthetic hydrocarbon or

mixture

of

synthetic

hydrocarbons to be used for

replacement of diesel)

Fischer-Tropsch petrol

(a synthetic hydrocarbon or

mixture

of

synthetic

hydrocarbons produced from

biomass,

to

be

used

for

replacement of petrol)

Fischer-Tropsch jet fuel

(a synthetic hydrocarbon or

mixture

of

synthetic

hydrocarbons produced from

biomass,

to

be

used

for

replacement of jet fuel)

Fischer-Tropsch

liquefied petroleum gas (a

synthetic

hydrocarbon

or

mixture

of

synthetic

hydrocarbons, to be used for

replacement

of

liquefied

petroleum gas

DME (dimethylether)

Hydrogen

from

—

renewable sources

ETBE

(ethyl-tertio-

(of

(of

which 37% from

butyl-ether produced on the

which 37% from

renewable

basis of ethanol)

renewable

sources)

sources)

MTBE (methyl-tertio-

(of

(of

butyl-ether produced on the

which 22% from

which 22% from

basis of methanol)

renewable

renewable

sources)

sources)

TAEE (tertiary-amyl-

(of

(of

ethyl-ether produced on the

which 29% from

which 29% from

basis of ethanol)

renewable

renewable

sources)

sources)

TAME

(tertiary-amyl-

(of

(of

methyl-ether produced on the

which 18% from

which 18% from

basis of methanol)

renewable

renewable

sources)

sources)

THxEE (tertiary-hexyl-

(of

(of

ethyl-ether produced on the

which 25% from

which 25% from

basis of ethanol)

renewable

renewable

sources)

sources)

THxME (tertiary-hexyl-

of

(of

methyl-ether produced on the

which 14% from

which 14% from

basis of methanol)

renewable

renewable

sources)

sources)

FOSSIL FUELS

Petrol

Diesel

".

6. Immediately after the Seventh Schedule to the principal

regulations there shall be added the following new Schedule

"EIGHTH SCHEDULE

regulation 33(3)

Part One - Feedstocks for the production of biogas for

transport and advanced biofuels, the contribution of which

towards the minimum shares referred to in regulation 33 may be

considered to be twice their energy content

(a) Algae

if

cultivated

on

land

in

ponds

or

photobioreactors;

(b) Biomass fraction of mixed municipal waste, but not

separated household waste subject to recycling targets under

paragraph (a) of item 12 of Schedule 5 of the Waste Regulations;

(c) Biowaste as defined in regulation (4) of the Waste

Regulations from private households subject to separate

collection as defined in regulation 4 of the aforesaid regulations;

(d) Biomass fraction of industrial waste not fit for use in

the food or feed chain, including material from retail and

wholesale and the agro-food and fish and aquaculture industry,

and excluding feedstocks listed in Part Two of this Schedule;

(e)

Straw;

(f)

Animal manure and sewage sludge;

(g)

Palm oil mill effluent and empty palm fruit bunches;

(h)

Tall oil pitch;

(i)

Crude glycerine;

(j)

Bagasse;

(k)

Grape marcs and wine lees;

(l)

Nut shells;

(m) Husks;

(n)

Cobs cleaned of kernels of corn;

(o) Biomass fraction of wastes and residues from forestry

and forest-based industries, namely, bark, branches, pre-

commercial thinning, leaves, needles, tree tops, saw dust, cutter

shavings, black liquor, brown liquor, fibre sludge, lignin and tall

oil;

(p)

Other non-food cellulosic material;

(q) Other ligno-cellulosic material except saw logs and

veneer logs.

Part Two - Feedstocks for the production of biofuels and

biogas for transport, the contribution of which towards the

minimum share established in regulation 33 may be considered to

be twice their energy content

(a)

Used cooking oil;

(b) Animal fats classified as categories 1 and 2 in

accordance with Regulation (EC) No 1069/2009.".

€1.17