The Law of Ukraine

On Alternative Types of Liquid and Gas Fuel

Date of Entry into Force:
February 15, 2000

The Law of Ukraine On Alternative Types of Liquid and Gas Fuel (hereinafter referred to as the Law) defines legal, social, economic, ecological, and organizational grounds for production and consumption of alternative types of liquid and gas fuel on the basis of involving untraditional sources and types of energy raw materials. The Law aims at establishing the necessary conditions for expanding production and consumption of these types of fuel in Ukraine. Alternative types of liquid and gas fuel are liquid and gas fuel which is alternative to relevant traditional types of fuel and which is produced from untraditional sources and types of energy raw materials.

Key principles of government policy in the sphere of alternative types of fuel shall be:
- supporting the development of scientific and technical base for production of alternative types of fuel, promoting scientific and technical achievements in this sphere;
- supporting entrepreneurship in the sphere of alternative types of fuel on the basis of government protection for business interests;
- developing international scientific and technical cooperation, widely using the opportunities of world science and technology in the sphere of alternative types of fuel, etc.

Fuel shall be considered alternative, if:
- it is fully produced from untraditional sources and types of energy raw materials or is a mixture of alternative and traditional types of fuel in proportions established according to state standards;
- it is produced from petroleum deposits, gas deposits, oil-gas condensate fields for non-industrial designation, exhausted deposits, from heavy types of crude, etc, and in terms of its features differs from requirements to traditional type of fuel. If such fuel, in terms of its features, meets requirements to traditional type of fuel, the present Law shall apply only to its production and shall not apply to consumers of such fuel;
- norms for environmental safety and consequences of using alternative types of fuel for the environment and human health meet the requirements established by Ukraines legislation for traditional types of fuel.

Alternative types of liquid fuel shall include:
- combustible liquids obtained from refining solid types of fuel;
- alcohols and their mixtures, oils, and other liquid biological fuel obtained from biological raw materials;
- combustible liquids obtained from industrial wastes, including gas outbursts, sewages, discharges, and other wastes of industrial production, etc.

Alternative types of gas fuel shall include:
- gas obtained from refining solid fuels, natural bitumen, heavy crude;
- gas obtained from natural gas hydrates and sub-hydration gas;
- manure gas, producer gas, other gas fuel obtained from biological raw material, including from biological wastes;
- gas obtained from industrial wastes, etc.

The alternative nature of fuel shall be confirmed by a document on fuel identification issued by a relevant authorized body of executive power according to the procedure determined by the Cabinet of Ministers of Ukraine. Refusal of the body of executive power to issue the document on fuel identification or its violation of the issuance procedure can be appealed in court. Producing company that sells alternative type of fuel, when requested, shall supply the buyer with a document confirming the quality of fuel and its alternative nature.

Organizational and economic measures stimulating the production and consumption of alternative types of fuel shall include:
- identifying sources of and directions for financing measures in the sphere of alternative types of fuel;
- stimulating investment activity and introducing cutting-edge technologies in the sphere of alternative types of fuel by way of establishing privilege regime for investment and other commercial activities of foreign investors;
- providing, according to the law, special state guarantees for the protection of foreign investments, aimed at developing the sphere of alternative types of fuel;
- setting up a special informational fund for the purpose of accumulating, systemizing and disseminating information on the availability of untraditional sources and types of energy raw materials in Ukraine.

Measures to encourage production and consumption of alternative types of fuel shall be financed at the expense of funds of enterprises, institutions and organizations regardless of their type of ownership, funds of the State Budget and local budgets, and other sources, not prohibited by the law.

Indicators for consumer quality for each alternative type of fuel shall be established according to the relevant standards. These indicators shall be the basis for all settlements with respect to alternative types of fuel. Norms for environmental safety of alternative types of fuel and indicators of safety for human health and labor shall be within the limits established by the legislation for traditional types of fuel. Norms and standards in the sphere of alternative types of fuel shall establish energy consumption indicators in the process of manufacturing the above-mentioned types of fuel from untraditional sources and types of energy raw materials, fuel consumption indicators for various technical means, other technical and economic indicators, as well as norms for environmental safety and sanitary indictors.

Violations in the sphere of alternative types of fuel shall be:
- sale of alternative types of fuel that do not meet standards and technical requirements by producing companies, legal entities and natural persons;
- production, sale and consumption of traditional types of fuel in the capacity of alternative ones;
- provision of privileges for producers and consumers of alternative types of fuel, if their activities do not meet requirements of the legislation on alternative types of fuel, etc.

Violating the legislation on alternative types of fuel shall entail disciplinary, administrative, civil, or criminal liability established by the laws of Ukraine. Enterprises, institutions, organizations regardless of their type of ownership, as well as citizens, shall compensate damages, incurred as a result of violating the legislation on alternative types of fuel, according to the procedure and in amounts stipulated by the legislation of Ukraine.
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