COMPLEMENTARY PROVISIONS

§ 1. For the purposes of this Act:

1. "Renewable energy sources" shall include non-fossil sources such as solar, wind, geothermal, hydroelectric, water wave or tidal energy, which are capable of renewing without visible depletion during their use, as well as waste heat, biomass energy, industrial and household waste energy.

2. "Alternative energy sources" include hydrogen, waste products of technological processing and others.

3. "Biofuels" include gas or liquid fuels for transport vehicles, derived from biomass. Biofuels include the following products:

a) "Bioethanol": ethanol derived from biomass and/or biodegradable fractions of waste, which can be used as biofuel;

b) "Biodiesel": methyl esters derived from vegetable oils or animal fats, having the properties of petroleum-derived diesel, which can be used as biofuel;

c) "Biogas": gas derived from biomass and/or biodegradable fractions of waste, which can be refined to the quality of the natural gas and be used as biofuel ;

d) "Biomethanol": methyl alcohol derived from biomass, which can be used as biofuel;

e) "Biodimethylether": dimethylether derived from biomass, which can be used as biofuel;

f) "Bio-ethyl-tertiary-butyl-ether": ethyl-tertiary-butyl-ether derived from bioethanol with 47 percent volume content of of bio-ethyl-tertiary-butyl-ether, which can be used as biofuel;

g) "Bio-methyl-tert-butyl-ether": fuel derived from biomethanol with 36 percent volume content of bio-methyl-tertiary-butyl-ether, which can be used as biofuel;

h) "Synthetic biofuels": synthetic hydrocarbons or mixtures of such hydrocarbons derived from biomass;

i) "Biohydrogen": hydrogen derived from biomass and/or biodegradable fractions of waste, which can be used as biofuel;

j) "Pure vegetable oil": oil derived from oil-bearing plants through pressing, extraction or comparable proceses, crude or refined but chemically unmodified, can also be used as biofuel in specific cases where its use is compatible with the type of engines involved and relevant emissions requirements.

4. The forms of selling the biofuels listed in item 3 on the market are:

a) "pure" – pure biofuels or liquid fuels with high biofuel content and specific properties for use in the transport sector;

b) "blended" – biofuels blended into liquid fuels, which meet the quality standards for oil-derived fuels such as gasoline (BDS EN 228) and diesel fuels (BDS EN 590), containing the maximum possible percentage of biofuel;

c) "biofuel derivatives" – liquid fuels derived from biofuels, such as bio-ethyl-tert-butyl-ether with 47 percent content of biofuel.

5. "Biomass" is the biologically decomposing part of agricultural products, waste and residues, including vegetable and animal wastes, forestry residues, as well as biologically decomposing fractions of industrial and household waste, which can be used as fuel, as well as the following waste products:

a) vegetal waste from agriculture and forestry;

b) vegetal waste from the food processing industry, if the generated heat is utilized;

c) vegetal waste from the production of wood pulp and production of paper from the pulp, if they are incinerated at the production site and the generated heat is utilized;

d) cork waste

e) wood waste, except such containing hologenic organic compounds or heavy metals;

f) sediments from waste water treatment facilities;

g) animal substances.

6. "Other renewable fuels" include renewable fuels different from biofuels, generated from renewable energy sources and used in the transport sector.

7. "Energy content" is the minimum operative heat emitted during combustion of a fuel.

8. "Electric power generated from renewable energy sources" is the electricity generated by facilities using only renewable energy sources as well as the portion of electricity generated from renewable energy sources in hybrid systems using also conventional energy sources and including the renewable electricity for charging storage systems and cut-off electricity generated by storage systems.

9. “Green certificate” is a document with a limited term of validity certifying the production of a certain volume of electricity from renewable energy sources or by a combined generation method, indicating the date and place of generation, the generation facility and its owner; transferable separately from the physical electric or heat energy the generation of which it certifies.

10. “Combined combustion” is combustion of renewable and non-renewable energy sources in a single process where at least 20 percent of the fuels for heat/power generation come from renewable energy sources.

11. "Minimum connection scheme" is the most economically viable combination of electric facilities and power transmission lines for connecting an energy plant to the grid, defined in conformity with the applicable regulations governing the territorial infrastructure, management, safety and operations of the electric power grids, the technical specifications, facilities and technology used by the transmission, respectively, the distribution company in the construction and maintenance of the grid infrastructure.

12. "Point of connection to the electric power grid" is any point along the route of the transmission and/or distribution grids at which the connecting facilities of one or more producers and/or consumers of electricity are connected.

13. " Household user of electricity and/or heating power" is a physical person who owns or rents a property and uses electricity and/or heating power for its household.

14. "Electricity consumption (gross domestic electricity consumption)" is the sum of national electricity generation for domestic consumption and imported electricity, less exported electricity.

15. “Certificate of origin” is an official nontransferable document verifying the producer, the quantity of electricity and heating power generated from renewable energy sources, the power plant, its capacity and other data and indicators set forth in the ordinance stipulated by Article 19, para. 3.

16. “Heating and/or cooling power generated from renewable energy sources” is the energy generated through the use of solar, geothermal and biomass resources, alternative sources and waste heat from industrial and energy production processes.

§ 2. This Act implements the provisions of Directive 2001/77/ЕC of the European Parliament and the European Council aiming to promote production and use of energy generated from renewable energy sources on the domestic market and Directive 2003/30/ЕC of the European Parliament and the European Council aiming to promote the production and use of biofuels and other renewable fuels in the transport sector.

TRANSITIONAL AND FINAL PROVISIONS

§ 3. (1) (Amended – SG 98/14.11.2008, into force since 14.11.2008) The mandatory purchase of energy under Art. 16 and 17 shall be effected through sale and purchase contracts. The term of validity of these contracts shall be 25 years – for the electricity generated form geothermal and solar energy and respectively 15 years – for the electricity generated from hydroelectric power plants with installed capacity less than 10 MW, as well as for the electricity generated from other renewable sources. The terms for the mandatory purchase shall start:

1. After the renegotiations, but not later than 31 March 2009 – for all existing producers of electricity generated from renewable energy sources except for hydroelectric power plants with installed capacity which exceeds 10 MW.

2. As from start of generation of the electricity, but not later than 31 December 2015 – for all new producers of electricity generated from renewable energy sources except for hydroelectric power plants with installed capacity which exceeds 10 MW.

(2) Not later than 31 December 2011, the Minister of Economy and Energy shall prepare and submit for approval by the Council of Ministers a bill on the market mechanisms for encouraging production of electricity and heating power from renewable energy sources, which may not necessarily be applicable to producers of energy from renewable energy sources specified under para. 1.

§ 4. Until enactment of the licensing regime for end suppliers of electricity, the obligations of end suppliers arising out of or in connection with this Act shall be performed by the existing public utility companies.

§ 5. The Energy Act (promulgated, SG No. 107 / 2003; as amended and supplemented, No. 18 /2004, No. 18 and 95 / 2005 and No. 30, 65 and 74 / 2006) shall be amended as follows:

1. The words "and the use of renewable energy sources" in Art. 1 shall be deleted.

2. Art. 2, para. 1, item 5 shall be repealed.

3. Art. 4, para. 2, items 9 and 10 shall be repealed.

4. Art. 33 shall be amended as follows:

a) the words "from renewable energy sources under Art. 159, para. 2 and” in para. 1 shall be deleted;

b) para. 2 shall be repealed.

5. The words "Art. 159 and 162" in Art. 35, para. 2, item 3 shall be replaced with "Art. 162 and under Art. 15 of the Renewable and Alternative Energy Sources and Biofuels Act ".

6. The words in the title of Chapter Eleven "from renewable energy sources and" shall be deleted.

7. Chapter Eleven, Section I "Production of electricity from renewable energy sources" containing Art. 157 – 160 shall be revoked.

8. The words "7,000 to 20,000" in Art. 206, para. 1 shall be replaced with "20,000 to 1,000,000".

9. The words "7,000 to 20,000" in Art. 207, para. 1 shall be replaced with "20,000 to 1,000,000".

10. The words "5,000 to 15,000" in Art. 208, para. 1 shall be replaced with "10,000 to 100,000".

11. The words "7,000 to 20,000" in Art. 210, para. 1 shall be replaced with "20,000 to 1,000000".

12. The words "10,000 to 25,000" in Art. 211, para. 1 shall be replaced with "20,000 to 1,000,000".

13. Art. 212 shall be repealed.

14. The words "500 to 1,000" in Art. 216 shall be replaced with "1,000 to 5,000".

15. Art. 219, para. 1 shall be amended as follows:

а) the words "and 212" shall be obliterated;

b) the words "500 to 5,000" shall be replaced with "from 1,000 to 8,000".

16. The number "212" in Art. 225, para. 2 shall be obliterated.

17. Items 3, 6, 18 и 52 in § 1 of the Additional Provisions shall be repealed.

18. Para. 127 of the Transitional and Final Provisions of the Act for Amendments and Supplements to the Energy Act (SG No. 74 / 2006) shall be repealed.

§ 6. (1) By-laws for application of this Act shall be adopted within six months of its enforcement.

(2) By-laws for application of the Energy Act shall be amended in line with the provisions of this Act within the period specified under para. 1.

§ 7. The Council of Ministers shall adopt:

1. the indicative targets under Art. 4, para. 1, item 3 – within three months of the enforcement of this Act;

2. the programs under Art. 4, para. 2 and 3 – within six months of the enforcement of this Act.

§ 8. The provisions of Art. 24 shall enter into force on 1 January 2008.

This Act was passed by the 40th National Assembly on 7 June 2007 and the Great Seal of the National Assembly was attached to it.

TRANSITIONAL AND FINAL PROVISIONS under the Energy Efficiency Act

(SG, 98/14.11.2008, into force since 14.11.2008)

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§ 17. In the Renewable and Alternative Energy Sources and Biofuels Act (SG.49/19.06.2007) § 3, para. 1 from the transitional and final provisions shall be amended as follows:

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§ 18. The term under § 3, para. 1, p. 1 from the transitional and final provisions of the Renewable and Alternative Energy Sources and Biofuels Act shall enter into force after enforcement of this Act.

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