Decree on the methodology for distribution of funds realized as income from the fee for production of energy from fossil fuels.

This Decree, based on the provisions of the Law on environment, prescribes the methodology for distribution of funds realized as income deriving from fees paid for production of energy from fossil fuels. These funds, realized on the basis of compensation for production of energy from fossil fuels, will be distributed by the Government no later than 30 days after the announcement of the Budget. The distribution of these shall be done in accordance with the following criteria: the area of the municipality where production of energy from fossil fuels is performed and taxed; the number of inhabitants in such municipality; the number of inhabitants of neighboring municipalities; consideration of area of neighboring municipalities. The methodology for distribution of funds realized as compensation income for fossil fuel energy production is based on principles of simplicity and transparency.