Chapter 3

This is an unofficial translation of the Norwegian regulation.

0 Chapter revoked by regulation of 17 November 2011 no. 1113. Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-1. Purpose

The purpose of the chapter is to promote the sale of biofuels for road traffic and promote sustainability for biofuels and liquid biofuels.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3.2. Definitions

In this chapter the following definitions apply:

a) biomass: the biodegradable part of products, waste and residues of biological origin from agriculture, forestry, fisheries, aquaculture and related industries, as well as the biodegradable part of industrial waste and municipal waste, but not waste of fossil origin.

b) biofuel: liquid or gaseous fuel for transport that is produced from biomass.

c) bioliquid: liquid fuels  for energy purposes other than transport, including for electricity and heating and cooling, produced from biomass.

d) waste: any substance or material which the holder disposes of or intends or is required to dispose of. Raw materials that have deliberately been altered in order to be regarded as waste, shall not be considered waste.

e) residues: residual products from agriculture, aquaculture, fisheries and forestry, as well as processing residues. A processing residual product is a substance that is produced in a manufacturing process which is primarily intended to produce another product. The residual product should not be a direct goal of the production process and the process must not have been changed deliberately to produce the residual product.

f) economic operator: the person or company responsible for payment of excise duties related to fuel or liquid biofuel as specified in excise regulations § 5-1 and § 5-2, cf. § 2-1, even if the fuel or the liquid biofuels are exempt from  excise duties.

g) support scheme: any instrument, scheme or mechanism applied by an EEA State or a group of EEA States, that promotes the use of energy from renewable sources by reducing the cost of that energy, increasing the price at which it can be sold, or increasing, by means of a renewable energy obligation or otherwise, the volume of such energy purchased.

h) renewable energy obligation: a national support scheme requiring energy producers to include a given proportion of energy from renewable sources in their production, requiring energy suppliers to include a given proportion of energy from renewable sources in their supply, or requiring energy consumers to include a given proportion of energy from renewable sources in their consumption.

i) land-use change: change in the use of an area between the following seven categories: the six land use categories used by the IPCC (forest, grassland, cropland, wetlands, settlements and other), plus a seventh category for agricultural land with perennial crops, that is perennial crops where the stem is not harvested each year, such as short rotation timber and oil palms.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-3. Requirements for sale of biofuels forroad traffic

Those who sell fuel shall ensure that a minimum of 3.5 percent (by volume) of the total traded quantity of fuel used in road transport per year consists of biofuels. This requirement can be met by the individual economic operator or multiple economic operators together.

For fulfillment of the requirement in the first paragraph, only biofuels that meet the sustainability criteria in §3-6 to § 3-9 ref. § 3-5 may be included.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014). Changed in regulation of 26 June 2015 no. 809 (effective as of 1 October 2015, see amended regulations for transitional rules for 2015).

3-4. Double counting of certain biofuels

When calculating the fulfillment of the blending requirement in § 3-3, biofuels produced from wastes, residues, non-food cellulosic material, and ligno-cellulosic material shall be considered to be twice that made by other biofuels.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-5. Requirement to meet the sustainability criteria

Biofuels and liquid biofuels that
a) are counted towards the fulfillment of renewable energy obligations, or
b) included in a support scheme,
shall, irrespective of the country of origin of the raw material, meet the sustainability criteria in § 3-6 to § 3-9.


Biofuels and liquid biofuels produced from waste and residues, with the exception of residues from agriculture, aquaculture, fisheries and forestry, need only fulfill  the requirement for the reduction of greenhouse gas emissions in § 3-6.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-6. Requirements for greenhouse gas emission reductions

Use of biofuels and bioliquids which are covered by § 3-5 shall result in a greenhouse gas emission saving of at least 35 % compared to the standard values for fossil fuels and, ref. Annex II, Part C, paragraph? 19. From 1January 2017 the emission reduction shall be at least 50 %. From 1 January 2018 the greenhouse gas emission saving shall be at least 60 % for biofuels and bioliquids which are included in § 3-5 and produced in installations in which production started on or after 1 January 2017. The reduction in greenhouse gas emissions shall be calculated by the method as described in Annexes I, II and IV.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-7. Land use criteria for biodiversity

Biofuels and liquid biofuels which are covered by § 3-5 shall not be made from raw materials from land that after 1 January 2008 had one of the following statuses, irrespective of whether or not the land continues to have such a status:

a) primary forest and other wooded land, namely forest and other wooded land of native species, where there is no clearly visible indication of human activity and the ecological processes are not significantly disturbed

b) areas designated:

i. by law or by the relevant competent authoritiy for nature protection purposes, or
ii. for the protection of rare or endangered ecosystems or species recognized by international agreements or included in lists drawn up by intergovernmental organizations or the World Conservation Union, and which are recognized under the EEA Agreement,

unless it can be documented that the production of the raw material does not conflict with these nature protection purposes,

c) grassland with high biodiversity that is

i. natural, namely grassland that would remain grassland in the absence of human intervention and which maintains the natural species composition and ecological characteristics and processes; or
ii. non-natural, namely grassland that would cease to be grassland in the absence of human intervention and which is species-rich and not degraded, unless evidence is provided that the harvesting of the raw material is necessary to preserve its grassland status.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-8. Land use criteria for areas with high carbon stock

Biofuels and liquid biofuels which are covered by § 3-5 shall not be produced from raw materials from areas that in January 2008 had the following status, and which no longer has that status:

a) wetlands, namely land that is covered with or saturated by water permanently or for a significant part of the year;

b) continuously forested areas, namely land spanning more than one hectare with trees higher than five metres and a canopy cover of more than 30 %, or trees able to reach those thresholds in situ;

c) land spanning more than one hectare with trees higher than five meters and a canopy cover of between 10 % and 30 %, or trees able to reach those thresholds in situ, unless evidence is provided that the carbon stock of the area before and after conversion is such that, when the methodology laid down in part C of Annex II is applied, the conditions laid down in § 3-6 would be fulfilled.

The provisions of this paragraph shall not apply if, at the time the raw material was obtained, the land had the same status as in January 2008.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-9. Other land use criteria

Biofuels and bioliquids which are covered by § 3-5 shall not be produced from raw materials from land that was peatland in January 2008, unless it can be demonstrated that the cultivation and harvesting of the raw material does not involve drainage of previously undrained soil.

Raw materials from agriculture within the EEA-area and used for the production of biofuels and bioliquids which are covered by § 3-5 shall be obtained in accordance with the requirements and standards under the provisions referred to under the heading ‘Environment’ in part A and in point 1-5 and 9 of Annex II to Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers (article 6(1) of that regulation).

Due to the lack of an adaptation text the requirements formally apply also to Norwegian producers. But given that the regulations / directives referred to are not covered by the EEA Agreement, it will not be possible to enforce the requirements in the case of Norwegian producers

0 Added by regulation of 11 September 2013 no. 1122 (effective as of -1 January 2014).

3-10. Duty to report on sustainability criteria

Those who sell biofuel and bioliquids to which § 3-5 applies, shall annually by 31 March report to the Norwegian Environment Agency (Miljødirektoratet) on the fulfillment of the sustainability criteria for the preceding year.

For this purpose a mass balance system shall be used that

a) allows consignments of raw material or biofuels with different sustainability characteristics to be mixed,

b) requires information about the sustainability characteristics and sizes of the consignments referred to in point (a) to remain assigned to the mixture; and

c) provides for the sum of all consignments withdrawn from the mixture to be described as having the same sustainability characteristics, in the same quantities, as the sum of all consignments added to the mixture.

Reporting after first paragraph shall also include relevant information on measures taken for the protection of soil, water and air, remediation of degraded land, the avoidance of excessive water consumption in areas where water is a scarce resource, and appropriate and relevant information on measures undertaken to take into account the conditions mentioned in Annex III of this chapter.

With the exception of biofuels and bioliquids covered by § 3-5, second paragraph, the reporting shall also indicate whether a bonus resulting from the use of biomass from severely degraded land mentioned in Annex II, Part C, paragraph 7 and 8, and whether a factor is used to calculate the emission reductions from the accumulation of carbon in the soil through improved agricultural management in Annex II, Part C, paragraph 1 and 10, ref. Annex IV, is used in the calculation of greenhouse gas emissions.

If biofuels or bioliquids that are covered under § 3-5, second paragraph, are used, the amount has to be stated in the report and the report shall include documentation that the biofuel or bioliquid is indeed covered by § 3-5, second paragraph.

Economic operators may use approved voluntary certification schemes to document their compliance with the sustainability criteria. Economic operators shall enclose documentation on whether the consignment of biofuel or bioliquids is covered by an approved voluntary certification scheme, and the name of the voluntary scheme.

Economic operators who submit documentation or data in accordance with an approved voluntary scheme, need not submit additional documentation on compliance with the relevant sustainability criteria or information about measures mentioned in the second paragraph. However, this applies only to the extent that the relevant sustainability criteria are covered by the voluntary scheme or agreement. It should be stated whether the approved voluntary scheme that has been used is recognized as adequate for all the sustainability criteria that are relevant to the current biofuel or bioliquid, including the environmental and social conditions mentioned in the second paragraph.

In the case of joint fulfilment of the blending obligation in § 3-3, information about the quantity of biofuels and fulfillment of the sustainability criteria of the individual economic operator must be made available.

A report form prepared by the Norwegian Environment Agency (Miljødirektoratet) must be used for reporting. Underlying data shall be available to the Norwegian  Environment Agency on request.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

3-11.Verification of sustainability criteria

Reporting under § 3-10 shall have been subject to an independent audit of requisite quality.

The audit shall be conducted by an external and independent auditor that:

a) has appropriate general skills and competencies: the auditor has good general competence in performing audits, and

b) has relevant specific/professional skills and expertise: the auditor shall have the necessary skills and competence to conduct an audit of the specific production chain and to assess the fulfillment of the relevant sustainability criteria and regulations.

The auditor shall use reputable, relevant standards for such audits.

The audit shall verify that the systems used are accurate, reliable and protected against fraud. The audit shall assess the sampling frequency and methodology, and the reliability of the data.

Documentation that the audit has been performed and that the auditor satisfies the requirements  of the second paragraph shall be submitted to the Norwegian  Environment Agency together with the report under § 3-10.

0 Added by regulation of 11 September 2013 no. 1122 (effective as of 1 January 2014).

 

Appendix to chapter 3: The appendixes lay down the rules for calculation of greenhouse gas emissions for biofuels and bioliquids. These rules are identical with the rules laid down in the DIRECTIVE 2009/28/EC and related communications from the Commission.