L 180/20 Official Journal of the European Communities 10.7.2002 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 27 June 2002 authorising the United Kingdom to apply a differentiated rate of excise duty to fuels containing biodiesel in accordance with Article 8(4) of Directive 92/81/EEC (2002/550/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Directive 92/81/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on mineral oils (!), and in particular Article 8(4) thereof, Having regard to the proposal from the Commission, Whereas: (1)  The United Kingdom has requested authorisation to apply a differentiated rate of excise duty to biodiesel used as road fuel either as pure fuel or blended into diesel fuels up to 5 per cent volume in accordance with EN 590. (2)  The other Member States have been informed of the United Kingdom's request. (3)  The development of renewable energies and biofuels in particular has been encouraged in the Community since 1985. Most recently, on 7 November 2001, the Commission adopted an action plan and two proposals for directives on encouraging the use of substitute fuels in the transport sector, starting with regulatory and tax measures designed to promote biofuels. (4)  The derogation requested by the United Kingdom authorities is therefore in line with the Community's policy of developing the biofuel sector, in the interests of protecting the environment and ensuring security of energy supply. (5)  The rate for biodiesel would be set at 20 pence per litre below that for ultra-low sulphur diesel (ULSD). This equates to an excise duty of 25,82 pence (41,4 euro- () O] L 316, 31.10.1992, p. 12. Directive as last amended by Directive 94/74EC (O] L 365, 31.12.1994, p. 46). cents) per litre of biodiesel at current rates. Furthermore, the reduction in excise duty proposed by the United Kingdom is proportional to the percentage of biofuel contained in the final product. The effective rates of excise duty are higher than the applicable Community minimum rates, in accordance with Council Directive 92/82/EEC of 19 October 1992 on the approximation of the rates of excise duties on mineral oils (3): Community minimum s (per 1000 ) ULSD Pure biodiesel EUR 245 EUR 734,3 () EUR 413,8 GBP 458,2 GBP 258,2 (') Average exchange rate in December 2001 was GBP 0,624 for EUR 1. The requested reduction should concern biodiesel, a fuel made from biomass within the meaning of Article 2(b) of Directive 2001/77EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market (}), or made from used fried oils, to be used as a road fuel. The differentiated rate would apply to pure biodiesel at the point of production or import. The biodiesel can then be used either as pure fuel or be blended into diesel fuels. Duty on imported blends would be payable at the appropriate rates for the constituent parts in the relevant proportion. () O] L 316, 31.10.1992, p. 19. Directive as last amended by Directive 94/74/EC. () O] L 283, 27.10.2001, p. 33.