The South African Biofuels Regulatory Framework provides a regulatory framework for the implementation of the Biofuels Industrial Strategy of 2007 (BIS). The targeted biofuels penetration is 4.5% v/v of the national fuel pool with 2% expected to come from first generation biofuels technologies.
The document mentions five angle to the Biofuels Regulatory Framework:
- The Feedstock Protocol will regulate the agricultural production of biofuels feedstock to mitigate the risk of the biofuels program to food security.
- The mandatory blending regulations: compelling licensed manufacturers and wholesalers of petroleum products to buy and blend locally produced bioethanol and biodiesel at a minimum of 2% of their petrol and 5% of their diesel market demand.
- The cost recovery mechanism for blending of biofuels: licensed petroleum products manufacturers who will be the biofuels blenders will remain cost neutral.
- The Biofuels Subsidy Mechanism to support the development of a new biofuels industry (both biofuels farmers and manufacturer support).
- The selection criteria for biofuels projects requiring a subsidy (only includes 1st generation biofuel projects).