COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a Directive of the European Parliament and of the Council on the limitation of emissions of certain pollutants into the air from large combustion plants

1. HISTORY OF THE FILE

- The proposal [COM(1998)415 final - 1998/0225 (COD)] was presented to the Council on 8 July 1998 (OJ C 300, 29.09.1998, p. 6)

- The Economic and Social Committee adopted its opinion on 27 January 1999, (CES 1999/67). The Committee of the Regions decided at its session of 30 June 1999 that it would not give an opinion.

- The European Parliament gave its opinion (first reading) at its plenary session on April 14 1999.

- The Commission adopted its amended proposal on 25 November 1999 COM(1999)611 final.

- At its meeting on 22 June 2000, the Council unanimously reached a political agreement with a view to adopting a Common Position.

- The Council adopted its common position on 9 November 2000.

2. PURPOSE OF THE COMMISSION'S PROPOSAL

The purpose of the Commission's Proposal was to update the emission limit values applicable to plants licensed after the proposal comes into force and to extend the scope of Directive 88/609 to include gas turbines from the same date. The Common Position also includes more stringent requirements than currently prevail for plants for a license was issued prior to 1 July 1987 so-called "existing plants.

3. COMMENTS ON THE COMMON POSITION

3.1. General comments

The key item during negotiations was whether the scope of the Commission's Proposal should be extended to apply more stringent requirements for existing plants than currently prevail in Community legislation and the configuration of such requirements. The European Parliament, in its First Reading, sought to include existing plants within the scope of the proposal and proposed emission limit values which would be applied from 1 January 2005 to such plants. The Commission did not share Parliament's view at the time. The Commission considered the Proposal to amend the Directive on Large Combustion Plants to be part of a package of measures to combat acidification and ozone, the principal element of this package being the Proposal for a Directive on National Emission Ceilings [1]. The Commission considered that the latter proposal would be the most environmentally efficient and cost effective way to achieve necessary emission reductions to meet the Community's goals for acidification and ozone and consequently had not included new provisions for existing plants within the scope of the LCP Proposal.

[1] COM(1999)125 1999/0067(COD)

In its Common Position the Council decided to extend the scope of the Commission's Proposal to include provisions for existing plants. As the Council reached Common Position on both the NEC and LCP Proposals together, the Commission was in a position to assess whether both proposals taken together reached an acceptable level of environmental ambition. In this context the Commission considered that it could accept the Common Position on the LCP Proposal which includes new provisions for existing (pre-1987) plants. While the Common Positions on the NEC and LCP Proposals do not produce the most optimised profile of emission reductions from a cost effectiveness perspective, they will deliver significant emission reductions. The Common Position on Large Combustion Plants will result in substantial improvements in the environmental performance of the large combustion plant sector. In addition it sets clear environmental standards for existing plants which will have to be respected in the pending enlargement of the Community.

In summary there is now a shared view between the Parliament and the Council on the principle that new and tougher provisions for existing plants than those currently in Directive 88/609 should be included.

3.2. Parliament's amendments accepted in full or part by the Commission and incorporated in the Common Position

Amendments 1, 3, 5, 15

The Commission accepted Amendment 1, Amendment 3 in part and Amendments 5 and 15 in principle and these are reflected in the Common Position. Amendment 1 which restates the aim of the Community's strategy on acidification is incorporated into Recital 4. The principle of Amendment 5 on future updates to the emission limit values applicable is reflected in Recital 7 and in the review process foreseen in Article 4. Equally, the principle underpinning Amendment 3 which deals with the potential for economic instruments is also accommodated in Article 4. The principle of Amendment 15 on the dissemination of information by the Member States on emissions to the public and appropriate organisations is also reflected in Recital 7, to the extent that it can be accommodated through the development of a Pollutant Emission Register under the IPPC Directive.

3.3. Parliament's amendments not accepted by the Commission and not included in the Common Position

Amendments 2, 4, 6, 7, 11, 13

The Commission did not accept Amendment 2 as it related to part of the 1994 Oslo Protocol to the 1979 Geneva Convention on Long Range Trans-boundary Air Pollution which refers to the emission limit values in Directive 88/609. These are subject to revision under the Commission's Proposal.

The Commission also did not accept Amendment 4 which sought to extend the scope of the Proposal to include gas turbines on offshore platforms and any technical apparatus used in the propulsion of vehicles, ships and aircraft. Gas turbines on offshore platforms are excluded from the scope due to the operational characteristics of these installations. As this Proposal addresses emissions from stationary sources, it is not appropriate to extend the scope to cover propulsion applications.

Amendment 6 which proposes to delete the derogation for the Kingdom of Spain in Directive 88/609 was also not acceptable, as the plants in question must be commissioned before the end of 2005 in order to remain eligible for the derogation.

Amendments 7, 11 and 13 proposed more stringent emission limit values for solid and gaseous fuels for plants licensed after 1 January 2000 than those proposed by the Commission. The Commission's Proposal, which was developed on the basis of an assessment of current technological performance, aims to set standards which can be applied at Community level. This approach will give Member States the flexibility to apply more stringent emission limit values, if warranted by local circumstances or to meet emission targets for sulphur dioxide and nitrogen oxides resulting from the Commission's parallel Proposal on national emission ceilings. Equally, it should not prejudice the environmental performance of large combustion plants when assessed on an integrated basis. In this context, the Commission does not consider more stringent emission limit values to be appropriate and could not accept these amendments.

3.4. Parliament's amendments not reflected in the Commission's Proposal but reflected in part in the Common Position of the Council

Amendments 8, 10, 12, 14 and 20

The major difference between the Commission's proposal and the Common Position of the Council is the inclusion of more stringent provisions for existing plants than those currently prevailing. The European Parliament in Amendments 8, 10, 12, 14 and 20 proposed to revise the emission limit values applicable to large combustion plants for which a license was issued between 1 July 1987 and 1 January 2000 and to also apply these emission limit values to plants for which a license was issued before 1 July 1987. The Commission did not accept these amendments and did not include them in its amended Proposal.

While there is no change in the Common Position to the requirements for plants licensed after 1 July 1987 and the date of entry into force of the current proposal, new provisions for existing plants are included which go some way toward meeting the intent of Amendments 8, 10, 12, 14 and 20. These amendments are now reflected to a degree in the Common Position through Article 4 which requires the application of the requirements for new plants, as defined in Directive 88/609, to existing plant by 1 January 2008. The need to adapt this approach in view of the different characteristics of the large combustion plant sectors in the Member States is also recognised in Article 4 by including the option to comply with the requirements for existing plants through the use of a national plan which would achieve the same emission reductions.

The other principal changes between the Commission's Amended Proposal and the Common Position are noted below.

Provisions for Biomass (Article 2.11 & Annex VI.B)

The definition of biomass (Article 2.11) has been adapted to ensure consistency with the pending Directive for a European Parliament and Council Directive on the incineration of waste. The changes to the definition ensure that the exemptions not covered by the incineration proposal are covered by the proposal on large combustion plants. In addition in the case of biomass the emission limit values for NOx in the case of plants licensed after this proposal comes into force and whose thermal capacity is between 50 and 100 MWth is 400 mg/Nm3 and 200 mg/Nm3 for plants whose capacity is greater than 300 MWth, compared with 350 mg/Nm3 and 300 mg/Nm3 respectively as proposed by the Commission.

Provisions for Combined Heat & Power (Article 7)

The text has been amended to clarify that the responsibility of the Member States is to ensure that the technical and economic feasibility of providing for combined generation of heat and power is examined in the case of new plants licensed after this proposal comes into effect and in the case of other plants subject to an extension of greater than 50 MWth, also after the proposal comes into force. Where this feasibility is confirmed installations shall be developed accordingly taking into account the market and distribution situation.

Indigenous Fuel Provisions (Article 6)

The provisions of Article 6 which allow for exceedances of the emission limit values for plants licensed after 1 July 1987 where the emission limit values cannot be respected due to the nature of indigenous lignite, shall no longer apply to plants licensed after the entry into force of this proposal. Also the rate of desulphurisation applicable to indigenous solid fuel in Annex VIII.B which applies pursuant to Article 5.2 when the emission limit values in Annex III.B cannot be respected has been modified. The rate applicable will be 92% in the case of plants in the 50 - 100 MWth capacity range and for plants with a capacity greater than 300 MWth, compared to 90% and 95% respectively in the Commission's proposal.

Provisions for Gas Turbines (Annex VI)

The higher emission limit value of 75 mg/Nm3 applicable in the case of combined heat and power applications where the overall efficiency is greater than 75% will also apply in the case of combined cycle applications where the cycle efficiency is greater than 55%.

In the context of the overall Common Position the Commission can accept these changes.

3.5. New provisions introduced by the Council

Recasting

Instead of proceeding with an amendment to Directive 88/609, the Council has decided to recast the directive. As a result several additional recitals have been added and the numbering of some articles has been changed. The Commission considers that recasting Directive 88/609 will facilitate its transposition into national legislation and subsequent implementation and thus can support it.

4. CONCLUSIONS

The Common Position was agreed to unanimously by Council. The provisions for existing plants and the new standards applicable to plants licensed after the proposal comes into force will result in substantial improvements in the environmental performance of the large combustion plant sector. The provisions for gas turbines reflect trends in technological choice in the power generation sector. The timetable for the introduction of the new provisions for existing plants is realistic at a Community wide level in view of the measures which will have to be put in place. Thus the Commission can accept and support the Common Position.