1. Reason for revision
With the Petroleum and Alternative Fuel Business Act (Law No. 20201, promulgated on February 6, 2024, implemented on August 7, 2024) revised to support the expanded production and use of eco-friendly alternative fuel in order to achieve carbon neutrality, there is a need to prescribe in detail legally delegated matters such as kinds of alternative fuels, range of eco-friendly refined raw materials and details of uses to be reported, prohibited actions by producers and importers/exporters of alternative fuels, and designation of exclusive agencies of alternative fuels.
In addition, the aim is to extend until the end of December 2027 the support for crude oil line diversification, which will expire in December 2024, in consideration of the deepening instability of global petroleum markets and increasing trend of dependence on Middle East petroleum, etc.
2. Main contents
A. Improvement of kinds of oil to be handled by alternative fuel retailer (Article 2 Items 8 through 10 of the Draft)
Alternative fuel retailers (agencies, oil stations, and sellers) shall handle the alternative fuel designated by the Minister of Trade, Industry, and Energy among the alternative fuel prescribed in the Enforcement Decree.
B. Establishment of kinds of alternative fuels (Article 5 of the Draft)
Detailed kinds of alternative fuels such as biodiesel oil, bio heavy oil, bio aviation fuel, renewable synthetic diesel, and renewable synthetic aviation fuel are prescribed.
C. Addition of produced oil types in the change to be registered by producers and importers/exporters of alternative fuel (Article 33 Item 6 of the Draft)
If producers and importers/exporters of alternative fuel intend to change the produced oil types, the change shall be registered.
D. Addition of projects to support petroleum and alternative fuel and designation of professional agencies (Article 41-2 of the Draft)
Addition of contents of supporting projects such as collection/analysis of information, statistics management, technology development, standardization, cultivation of manpower, international cooperation, and construction of integrated information system on/for alternative fuel (Article 41-2.1 of the Draft)
Designation of the Korea Petroleum Quality and Distribution Authority as the professional agency for the efficient implementation of petroleum substitute fuel support projects (Article 41-2.2 of the Draft)
E. Establishment of prescription of details on uses of eco-friendly refined raw materials to be reported (Article 42-3 of the Draft)
The kinds of raw materials, input processes, produced oil types, and confirmation data of eco-friendly refined raw materials, etc. are designated as details of uses of eco-friendly refined raw materials to be reported, and the reporting time and method, etc. of the details of uses of eco-friendly refined raw materials are delegated to the Decree of the Ministry of Trade, Industry, and Energy.
F. Establishment of provision on prohibited actions by producers and importers/exporters of alternative fuel (Article 43 of the Draft)
Producers and importers/exporters of alternative fuels are prohibited from supplying bio fuels produced by reusing waste mineral oil under Article 4-2 of the Enforcement Rules of the Wastes Control Act (Article 43.1.11 of the Draft)
G. Addition of right consignment work (Article 45.4 Item 16-2 and Item 18 of the Draft)
Receipt/Confirmation of details of uses of eco-friendly refined raw materials to be reported by oil refinery operators and confirmation of observation of prohibited actions under Article 39.5 of the Act are consigned to the Korea Petroleum Quality and Distribution Authority.
H. Extended support for crude oil line diversification (Article 27.3 of the Draft)
The support system to reduce part of the costs to be incurred in the process of importing crude oil from diversification areas from petroleum import charge is extended until December 2027.
