EUROPEAN COMMISSION Brussels, 26.10.2022 COM(2022) 541 final 2022/0345(COD) Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning urban wastewater treatment (recast) (Text with EEA relevance) {SEC(2022) 541}

{SWD(2022) 541, 544}



TABLE OF CONTENTS EXPLANATORY MEMORANDUM 2 1.CONTEXT OF THE PROPOSAL2 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY5 3.RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS6 4.BUDGETARY IMPLICATIONS12 5.OTHER ELEMENTS12 EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL • Reasons for and objectives of the proposal The Urban Wastewater Treatment Directive (UWWTD) was adopted in 1991. The objective of this Directive is to “protect the environment from adverse effects of wastewater discharges from urban sources and specific industries”. Member States (MS) are required to ensure that wastewater from all agglomerations above 2 000 inhabitants is collected and treated according to EU minimum standards. MS also have to designate ‘sensitive areas’ according to criteria included in the Directive for which stricter standards and deadlines apply. In addition, MS report every 2 years on Directive’s implementation. This information is published by the Commission in biennial reports. An in-depth REFIT evaluation (‘the Evaluation’) of the Directive was concluded in 2019 and confirmed that the implementation of this Directive has lead to a significant reduction of pollutant releases. Across the EU, the wastewaters from around 22 000 cities representing the pollution of around 520 million population equivalents (p.e.) are treated in centralised systems. The effects on the quality of EU lakes, rivers and seas are visible and tangible. One of the key reasons for the Directive’s effectiveness lies in the simplicity of its requirements, which allows for straightforward enforcement. Today 98% of EU wastewaters are adequately collected and 92% adequately treated, even if a limited number of MS still have difficulties in reaching full compliance. European funds provide essential support in helping MS to achieve the required investments. On average each year EUR 2 billion are devoted to investments in water supply and sanitation in the EU. According to the Evaluation, this approach combining enforcement and financial support has paid off and helped to ensure progressively high levels of compliance with the Directive. Wastewater operators are mainly (60%) public companies owned by competent public authorities. They can also be private companies operating for a competent public authority or mixed companies. They are part of a ‘captive’ market since people and businesses connected to the public network cannot choose their operators. Both the Evaluation and the consultation process confirmed that the sector is mainly reactive to legal requirements. The Evaluation identified three main sets of remaining challenges, which served as a basis for the definition of the problems for the impact assessment: 1. Remaining pollution from urban sources: the Directive is focused on pollution from domestic sources collected and treated in centralised facilities. Less attention is given to other sources of urban pollution, which are now becoming dominant (smaller cities below 2.000 p.e., decentralised facilities, pollution from rain-waters). The limit values for the treatment of some pollutants are now outdated compared to technical progress made since 1991 and new pollutants have emerged such as micro-plastics or micro-pollutants, which can be harmful for the environment or public health already at very low level of concentration. 2. Alignment of the Directive with the European Green Deal (EGD): since the adoption of the Directive, new societal challenges have emerged. The EGD sets ambitious policy objectives to fight climate change, enhance the circularity of the EU economy and reduce environmental degradation. Additional efforts are needed in the wastewater sector to: reduce its GHG emissions (34,45 million tonnes CO2e/year - around 0,86% of the total EU emissions), decrease its energy consumption (around 0,8% of the total energy use in the EU) and make it more circular by improving sludge management (notably by better recover nitrogen and phosphorus and possibly valuable organic) and increasing safely reuse of treated water.

3. Insufficient and uneven level of governance: The Evaluation and OECD studies showed that the level of operator’ performance and transparency greatly varies from one to another. Also, a Court of Auditors report highlighted that the ‘polluter pays’ principle is not sufficiently applied. Monitoring and reporting methods could be improved notably by further digitalisation. Finally, the recent COVID-19 crisis has shown that wastewaters are a very rapid and reliable source of useful information for public health if competent authorities for health and wastewater management are well coordinated. The revision of the Directive is one of the deliverables of the zero pollution action plan (ZPA). Its main objective is to address the above-mentioned challenges in a cost-effective way while keeping the Directive as simple as possible to ensure proper implementation and enforcement of its requirements.

• Consistency with existing policy provisions in the policy area The revision of the UWWTD is expected to further reduce pollution discharges by urban sources. In that sense, it is directly linked to the revision of the pollutants lists under the Environmental Quality Standards Directive and the Groundwater Directive – two ‘daughter’ Directives of the Water Framework Directive (WFD), regulating the acceptable levels of pollutants in surface and ground water bodies. Revision of the UWWTD will have a positive impact on the future reviews of the Marine Strategy Framework Directive ( MSFD ) and on the review of the Bathing Water Directive (BDW). It is also connected to the revision of the Industrial Emissions Directive (IED) and the related review of the E-PRTR Regulation, as some industrial emissions are collected in public collection networks. Additional actions included in the revisuion of the UWWTD to further reduce micro-pollutants and in particular coming from the use of pharmaceuticals and personal care products will contribute to the sound implementation of the Chemicals Strategy for Sustainability and the Pharmaceuticals Strategy. The Circular Economy Action Plan clearly indicates that a better integration of the urban wastewater sector with the circular economy is needed. This is particularly relevant for the Sewage Sludge Directive, which regulates the use of sewage sludge in agriculture and has implications for the soil health proposal announced in the EU Soil Strategy for 2030. There are direct connections with the Biodiversity Strategy as reducing water pollution has a direct beneficial effect to ecosystems. Actions to green cities, such as those stemming from the Nature Restoration Law, can not only create a good habitat for pollinators, birds and other species, but also directly help to control rainwater and related pollution, while improving the overall quality of life. Better management of water quality and quantities in urban areas will also contribute to climate adaptation. • Consistency with other Union policies The new geopolitical reality requires the EU to accelerate drastically the clean energy transition to end its dependence on unreliable suppliers and volatile fossil fuels. In line with the objectives of the REPower EU plan and the 2022 legal proposal COM(2022)222 amending the Renewable Directive, which already identifies wastewater treatment facilities as ‘go-to areas’, the revision of the Directive is expected to directly contribute to these objectives by fixing a clear and measurable objective to reach energy neutrality in the wastewater treatment sector by 2040. Experience from the most advanced Member States shows that this can be achieved through a combination of actions to improve energy efficiency, in line with the ‘Energy Efficiency First’ principle, and through the production of renewables, notably of biogas from sludge, which can substitute imports of natural gas. This objective is fully consistent with the EU climate neutrality objective as included in the EU Climate Law combined with the Effort Sharing Regulation, which requires MS to reduce their GHG emissions from non-ETS sectors according to national objectives. It is also consistent with the recent recast proposal of the Energy Efficiency Directive (EED) which includes an annual reduction target of 1,7% of the energy consumption for all public bodies, with the 2021 proposal for a revision of the Renewable Energy Directive (REDII) and with the REPowerEU Plan which includes an increased objective of 45% of renewable energy by 2030. The initiative could also contribute to REPower EU Plan objective to scale up the production of biomethane in the EU to 35 billion cubic meter in 2030, and to the 2021 Commission proposal COM/2021/805 for a regulation aimed at reducing methane emission . The revision of this Directive is also fully in lign with the final proposals of the Conference on the Future of Europe (CoFE), in particular the proposals on tackling pollution, more specifically Proposal 2.7 to ‘Protect water sources and combat river and ocean pollution including through researching and fighting microplastic pollution’. Finally, this proposal will directly contribute to principle 20 of the European Pillar for Social Rights. The EU is also committed to the 2030 Agenda for Sustainable Development and its Sustainable Development Goals, of which SDG 6 on access to adequate and equitable sanitation and hygiene for all. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY • Legal basis The current UWWTD is based on Article 192(1) of the Treaty on the Functioning of the European Union (TFEU), which states that Union policy on the environment shall aim at a high level of protection taking into account the diversity of situations in the various regions of the Union. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. Action in the field of wastewater management must therefore be taken according to these key provisions and in light of the shared competence with Member States. This means that the EU can only legislate with due consideration for the principles of necessity, subsidiarity and proportionality. • Subsidiarity (for non-exclusive competence) EU action remains essential to ensure that all people living in the EU can draw benefits from improved water quality of rivers, lakes, ground-waters and seas. As 60% of the EU water bodies are transboundary, it is necessary to ensure the same level of protection everywhere and at the same rhythm, to avoid the risk that efforts made by some Member States are jeopardised by the lack of progress by others. The Evaluation has shown that in most MS the Directive was a unique driver for investing in the required infrastructures. The Evaluation also confirmed that EU action has the potential to further ensure an equal level of environmental and human health protection across all Member States. Over the last 30 years of implementation of the UWWTD, the quality of bathing water sites (hence tourism and recreation), of raw water used to produce drinking water and of water bodies in general has been either preserved or, in several instances, improved. The recent COVID-19 pandemic has shown the interdependence of Member States in terms of virus circulation. Ensuring effective, rapid, and harmonised tracking of pathogenic factors in wastewaters can benefit the whole EU. Without EU harmonised and integrated action, the possibilities of tracking new types of viruses and of surveying other relevant health parameters in wastewaters would only be achieved in a few, likely the most advanced MS. Improving access to sanitation should be ensured for everyone living in the EU. Equal access to key information (on wastewater operator economic and environmental performances) should also be ensured to for all. All MS are facing the consequences of climate change notably on their hydrological regimes. The rain regimes have changed which – on top of floods - increases the risks of pollution due to untreated rain-waters (storm wateroverflows and urban run off). Similarly, pollutants of emerging concern such as micro-pollutants or micro-plastics are present in all MS. This is also the case for most of the remaining loads from urban sources, which affect water quality in all MS. Also, the drivers for the identified problems are very similar from one MS to another. Finally, the Evaluation showed that EU standards were a crucial driver for the development of a globally competitive EU water industry. Since the adoption of the Directive, several major worldwide leaders in the field of wastewater treatment have been created and are exporting their services around the world. Further modernising EU standards, for instance with new requirements on micro-pollutants or energy use, would stimulate innovation and ultimately economies of scale. • Proportionality The preferred option includes a proportionate package of measures representing the best ‘value for money’ of all possible options (see Section 7.1 of the impact assessment for more details). Careful attention was given to finding an optimal solution based on: ·the costs and the benefits analysis (or the cost-effectiveness analysis in the case of micro-pollutants, in the absence of reliable method to monetised benefits): the monetised benefits are systematically higher than the costs for each individual measure of the preferred option in all Member States;

·administrative burden reduction and enforceability: by targeting only a limited number of facilities or agglomerations, significant results can be obtained on key parameters such as pollution reduction, energy use and GHG emissions while keeping administrative burden at a proportional level and ensuring a high level of enforceability; ·the introduction of a risk-based approach for most of the proposed measures, which will help ensure that investments are taking place where they are needed. When necessary to reach local optimal solutions, flexibility was left to national or local authorities. This is the case, for instance, for achieving the energy neutrality objective or for reducing emissions from rain-waters thanks to integrated water management plans. • Choice of the instrument The initiative’s objective can be best pursued through a recast of the Directive which – as shown in the REFIT Evaluation is the most appropriate legal instrument to regulate the collection and treatment of urban wastewaters. A directive requires Member States to achieve its objectives and implement the measure into their national substantive and procedural law systems. This approach gives Member States more freedom when implementing an EU measure than a regulation, in that Member States can choose the most appropriate means of implementing the measures in the Directive. 3.RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS • Ex-post evaluations/fitness checks of existing legislation The REFIT evaluation of the UWWTD was carried out in 2019. On top of the three main challenges identified in the Evaluation (see above), the assessment of the Directive’s effectiveness showed that it has been successful in reducing loads of the targeted pollutants from urban point sources (domestic/urban wastewater and similar industrial pollution). Loads of biochemical oxygen demand, nitrogen and phosphorus in treated wastewater fell across the EU by 61%, 32% and 44% respectively between 1990 and 2014. This has clearly improved the quality of EU water bodies. The assessment of coherence showed that the Directive is internally coherent overall. The UWWTD works overall in synergy with other pieces of EU legislation and contributes strongly to achieving the objectives of the Water Framework Directive, the Bathing Water Directive and the Drinking Water Directive. There are some limited overlaps in terms of what activities are covered by the UWWTD compared to the Industrial Emissions Directive. In general, there are also no issues of coherence with newer EU polices; however, there may be some scope for improving the consistency between the UWWTD and climate and energy policies. The analysis of relevance and effectiveness showed the need for continued intervention not least because inappropriately treated or untreated urban wastewater is still one of the main reasons why EU waters fail to achieve at least good status under the Water Framework Directive. Moreover, the scientific community, policy makers and the general public see the growing evidence of contaminants of emerging concern, including micro-pollutants such as pharmaceuticals and micro-plastics in water bodies, as an increasingly important issue. As regards circular economy potentials, the UWWTD contains limited provisions on wastewater and sludge reuse or recovery of valuable components. These have never been strictly enforced, partly due to the lack of strong harmonised standards at EU level and the potential risks to human health. The EU added value assessment, which included considering whether the UWWTD complies with the subsidiarity principle, showed wide recognition among stakeholders that the Directive is still needed, and that withdrawing it would have negative impacts. The Directive supports the protection of some 60% of EU transboundary water basins from the adverse effects of wastewater discharges. Lastly, various possibilities to simplify and better use digitalisation were identified in the Evaluation and included in the review of the Directive. The Evaluation was improved following the suggestions of the Regulatory Scrutinity Board (opinion of 17 July 2019) notably for what relates to the main reasons behind compliance difficulties in some MS, the wider context influencing the quality of the EU waters, the importance of tackling new pollutants. The conclusions were reinforced and more detailes were provided on the situation of each MS. • Stakeholder consultations The Evaluation and then the impact assessment underwent a thorough consultation process that included a variety of different consultation activities, as set out in the consultation strategy. The methods selected for consulting stakeholders consisted of semi-structured interviews, interactive workshops a broad online public consultation (OPC) to reach a large range of stakeholders on a variety of topics and a written consultation on factual information and assumptions for modelling. A final stakeholders conference was held to obtain views on the different policy options proposed by the Commission. The OPC ran for 12 weeks, from 28 April to 21 July 2021. A total of 285 responses were received, and 57 position papers were submitted. The OPC gathered views of the respondents on the problems relating to wastewater pollution and how to best address these problems. Questions required participants to score statements or proposed measures on a scale of one (least agreement/effective) to five (most agreement/effective). Member States were consulted on several occasions. A specific meeting with MS experts helped to identify best practices and possible options at the beginning of the process. This was completed by a specific consultation of each Member State in 2020 to build a solid baseline (see below). In addition, four online thematic workshops were held in 2021 on (i) monitoring and reporting; (ii) wastewater and sludge; (iii) costs and benefits; and (iv) integrated water monitoring. A virtual stakeholder final conference took place on 26 October 2021 to present the main options and first results of the impact assessment (312 participants from 226 organisations, in 27 Member States). Overall, there was a broad consensus among stakeholder on the necessity to revise and modernise the Directive and on the main options to be considered for the analysis in the IA. The measures included in the preferred option are overall well supported by the stakeholder, with some nuances depending on the options and the stakeholder groups. For instance, there was a broad consensus among stakeholders on the necessity to address the issue of micro-pollutants from wastewaters. Apart from some business stakeholders (part of the chemical and pharmaceuticals industry), all stakeholders, including water-related business, supported the requirement to remove micro-pollutants. Most stakeholders also insisted on the importance of measures to be taken at source but also on the need to better apply the ‘polluter pays’ principle by making producers financially responsible for the costs linked to the additional treatments required to treat micro-pollutants. The extended producer responsibility (EPR) approach received a broad support from the majority of stakeholders, except from the pharmaceutical and chemical industries, which are overall not in favour of such a system, notably on the grounds that the financial responsibility should be either shared by all actors involved in the chain (from industry to consumers) or taken by the public authorities.

Energy audits received broad support, while EU-based objectives and targets on energy neutrality were less supported by MS or local authorities than by other stakeholders. Additional feedback received by the most important water industry representatives showed a willingness to have both energy and climate neutrality targets included with a shorter deadline (2030) than the one envisaged in this report. Most advanced MS clearly supported an EU-wide target similar to their own target. Finally, stakeholders also asked for more clarity on some aspects such as the criteria to designate ‘sensitive’ areas subject to eutrophication. • Collection and use of expertise Besides the stakeholder consultation, the following main sources of information were used to build the impact assessment: Models developed by the JRC: Over several years, the JRC has developed models on water quality and quantity in the EU. These models were adapted to the policy questions related to the Evaluation and impact assessment. Consultation of ad hoc experts: under the co-lead of JRC and the Directorate-General for the Environament (DG ENV), mini consortium of experts was consulted on specific policy questions (Individual Appropriate Systems – IAS, antimicrobial resistance, combined sewer overflows and urban runoff, nutrients, micro-plastics, and greenhouse gas emissions). For each issue, a report was prepared and used directly in the IA or to improve the JRC model. All reports are expected to be published in the coming months. Support from the Organisation for Economic Cooperation and Development (OECD): DG ENV cooperated with the OECD to develop a benefit methodology for the IA. OECD has also produced several reports in support of the REFIT Evaluation. In addition, the OECD provided analysis of the issues related to transparency and governance. In-depth consultation of the Member States: specific consultation of each MS was organised in 2020 to establish a solid baseline scenario and to gather evidence on the best practices. For each country a fiche was prefilled with the hypothesis JRC intended to use in the context of the modelling. All MS provided ad-hoc inputs during this consultation. To support the IA, two support contracts were attributed to external consultants, one for the general impact assessment and another on the feasibility of an extended producer responsibility system for micro-pollutants. • Impact assessment An impact assessment was carried out. The summary sheet and the positive opinion of the Regulatory Scrutiny Board dated 3 June 2022 are accessible with the following link: Register of Commission Documents (europa.eu) For each problem raised by the Evaluation, policy options were identified on the basis of best practices in place in the MS and on an in-depth consultation of the stakeholders. Options lacking support from the stakeholders or too complex to implement were discarded at an early stage. Different levels of ambition were developed ranging from low ambition (measures applied only to larger facilities) to high ambition (same measures but applied also to smaller facilities) with an intermediate level of ambitions based on a risk-based approach (measures taken only where there is a risk for the environment or public health). For some issues, the consultation showed that options are limited – for instance for non-centralised facilities (i.e. IAS), transparency or monitoring health parameters. For other problems (heavy rain waters or energy use), in line with the subsidiarity principle, enough flexibility was left to allow for most cost-effective solutions to be designed at local level. The impacts of the options were assessed using a model developed by the JRC already developed and used for the REFIT Evaluation. A baseline scenario (assuming full compliance of the existing Directive with additional deadlines for some MS) and a maximum feasible scenario were developed as comparison points. For each problem, the choice of the preferred option was based on several criteria: costs/benefits, costs/effectiveness, level of contribution to the European Green Deal objectives, water pollution reduction, enforceability and reduction of administrative burden. The preferred option includes a proportionate package of measures representing the best ‘value for money’ of all possible options. The following main measures will progressively be applied until 2040. The scope of the Directive will be expanded to agglomerations above 1 000 p.e. New standards will be developed for decentralised facilities (IAS) while MS will be required to put in place effective inspection for these facilities. To reduce pollution due to rain waters, MS will be required to establish and implement integrated water management plans in all large agglomerations and in those above 10.000 p.e. where there is a risk for the environment. Priority will be given to preventive measures including green infrastructures and to optimisation of the existing collecting, storage and treatment systems by better using digitalisation based on clearly defined standards and specifications. Nutrient releases will be further reduced with more stringent limit values to treat nitrogen and phosphorus. These new standards will be systematically applied to all larger facilities above 100 000 p.e. but also in all facilities above 10 000 p.e. located in areas where eutrophication remains an issue. New limit values will be established for micro-pollutants that require additional treatment. This would apply first for all large facilities and then for facilities above 10 000 p.e. where there is a risk to the environment or public health on the basis of clear and simple criteria.

A system of producer responsibility targeting pharmaceutical and personal care products – the two main sources of harmful micro-pollutants will be set to cover the additional treatment costs for micro-pollutants and incentivise the placing on the EU market of less harmful products. MS will be required to better monitor and track at source non-domestic pollution. This is to increase the possibilities of re-using sludge and treated water, and to reduce the risk of non-treatable substances being discharged into the environment and of treatment plants malfunctioning. An objective of energy neutrality will be established by 2040 at national level for all wastewater facilities above 10 000 p.e., in line with best practices already in place in some MS; specifically, the energy used by the sector will have to be equivalent to the production of renewables from the sector; to contribute to this objective; energy audits will be required for all facilities above 10 000 p.e. To improve the governance of the sector, wastewater operators will be requested to monitor and make transparent key performance indicators. Access to sanitation will be enhanced in a manner fully consistent with the recently adopted revised Drinking Water Directive, where access to water supply was also improved. Monitoring and reporting will be improved to better use the possibilities offered by digitalisation. MS will be required to organise cooperation between their health and wastewater competent authorities so that permanent surveillance of key public health parameters, such as the presence of some viruses like SARS-Covid-2 is in place. The time horizon of 2040 was chosen to give enough time to MS to make the required investments. Interim objectives will be included to ensure progressive implementation of the Directive and ensure that action is taken at an early stage in case of delays in some MS. By 2040, when all measures are expected to be in place, the main impacts of the preferred option can be summarised as follows: ·In terms of water pollution, compared to the baseline, the total pollution would be reduced by 4,8 million p.e. (or 105.014 tonnes) for BOD, 56,4 million p.e. for N (or 229.999 tonnes), 49,6 million p.e. (or 29.678 tonnes) for P, 77,4 million p.e. for the toxic load of micro-pollutants and 24,8 million p.e. for E. Coli. Micro-plastics emissions would be reduced by 9%, mainly though actions on improved management of rain waters. ·With the planned measures to reach energy neutrality and the additional treatment of nitrogen, GHG emissions would be reduced by 4,86 million tonnes (37,32 % of the avoidable emissions from the sector) which is in line with the objectives of the EU Climate Law and the ‘Fit for 55’ climate package. ·As from 2040, the total cost would amount to EUR 3,848 billion per year, below the expected monetised benefits (EUR 6,643 billion per year by 2040). This conclusion is valid at EU level but also for each MS. These additional costs are expected to be covered by a combination of water tariffs (51%), public budgets (22%) and the new system of producer responsibility (27%) for the treatment of micro pollutants. In terms of who is affected, wastewater operators are responsible for collection, treatment, monitoring and proper discharge of different waste streams. Changes to the UWWTD will have direct impacts on them. Additional investments will be needed notably to better manage nutrients but also to treat micro-pollutants. Investments will also be needed to meet energy neutrality even if these investments will be profitable on the mid/long run. The population is affected since water tariffs and taxes are paid by the population to support the wastewater treatment sector. By 2040, the expected average increase in water tariffs would amount to 2,3% at EU level, with some differences between MS depending on their financing strategies. As detailed in the IA, this expected increase will not affect the overall affordability of water services in any MS. It is essential to ensure transparent access to information on wastewater treatment activities including on the water-energy-climate nexus.. The public will benefit from clean drinking and bathing water, improved ecological status of waters, preserved biodiversity and improvements in public health reactiveness to possible outbreaks. The water and treatment technology industry will directly benefit from stronger standards and from measures to expand the Directive’s scope to smaller agglomerations, optimise operations and reduce energy use and GHG emissions. New business opportunities to develop new treatment techniques while reducing energy use and GHG emissions will emerge from the preferred option. Innovation will be boosted, maintaining a comparative advantage for the EU water industry. Personal care products and pharmaceutical industries will have to set up new ‘producer responsibility’ organisations and finance their operations. These industries will have the choice either to pass these new costs on in the price of their products (max increase of 0.59%) or reduce their profit margins on them (average maximum impact of 0.7%). • Regulatory fitness and simplification In line with the conclusions of the REFIT Evaluation, some clarifications and simplifications will be introduced in the revised Directive. This is the case for instance for rain waters and IAS, for which the new requirements will clarify what is expected from Member States. Some obsolete articles will be removed from the text such as the possibility to designate ‘less sensitive’ areas or to reduce the requirements in coastal zones – two possibilities only used in one region of one MS. Efforts were also made to limit reporting to essential elements which then will be used for assessing compliance or tracking progress on emission reductions. These efforts combined with the use of digital tools are expected to limit administrative burden while improving the quality and the rapidity of collected data. • Fundamental rights The proposal is expected to improve fundamental rights by improving access to sanitation particularly for marginalised and vulnerable people in a manner fully consistent with the recently revised Drinking Water Directive (including similar provisions for access to water). 4.BUDGETARY IMPLICATIONS

The financial statement related to the budgetary implications and the human and administrative resources required for this proposal are integrated in the legislative financial statement for the zero pollution package which is presented as part of the proposal for revision of the lists of pollutants affecting surface and groundwaters. 5.OTHER ELEMENTS • Implementation plans and monitoring, evaluation and reporting arrangements The implementation planning for the main actions included in the preferred option are summarised in Table 2 below. By 2025 additional monitoring activities would be in place: these concern non-domestic releases, health-related parameters, key performance operator indicators, together with actions to improve transparency. National and EU databases including all the elements necessary to check compliance will be in place, and ‘vulnerable and marginalised people’ will be identified together with actions to improve access to sanitation. Different indicators to measure success can be extracted from Member State reports: ·the existing compliance rate and distance to target per MS and per treatment level, which provide an excellent overview of the Directive’s implementation; ·the number of facilities equipped with additional treatment for N/P and micro-pollutants, and the related reduction of N/P releases and toxic load; ·the energy use by MS and the related GHG emissions; ·the number of agglomerations covered by integrated management plans for storm water overflows and urban runoff and their compliance with the EU objective; ·the measures taken by MS to improve access to sanitation and better control IAS, and a summary of the main health indicators surveyed in the MS. Other data will be used to measure specifically the impacts of the UWWTD. These include most notably data coming from the Water and the Marine Framework Directives on the water quality of the receiving waters (rivers, lakes and seas). More details on possible parameters to be reported for assessing compliance and measure the success of the Directive are provided in Annex 10 to the impact assessment. A first in-depth evaluation of the revised Directive can be expected by 2030, when most investments should have been made in larger facilities. This first evaluation would make it possible to assess the revised Directive’s success and remaining challenges linked with its implementation. If need be, corrective measures could be envisaged to ensure the full implementation of the revised Directive. Another evaluation could be considered before 2040 to prepare a possible review of the Directive. 2025 2030 2035 2040 Storm water overflows and urban runoff (rain waters) Monitoring in place Integrated plans for agglo. > 100.k p.e. + areas at risk identified Integrated plans in place for agglo. at risk between 10 and 100k p.e. Indicative EU target in force for all agglomerations > 10.000 p.e. Individual appropriate systems Regular inspection in all MS + Reporting for MS with high IAS EU standards for IAS Small-scale agglomerations New thresholds of 1.000 p.e. All agglo.> 1.000 p.e. compliant Nitrogen and phosphorus Identification of areas at risk (agglomerations 10 to 100k p.e.) Interim target for N/P removal in facilities > 100 000 p.e. + New standards N/P removal in all facilities above 100k p.e. + Interim target for areas at risk N/P removal in place in all areas at risk (between 10 and 100k p.e.) Micro-pollutants Setting up extended producer responsibility schemes Areas at risk identified (10 to 100k p.e.) + Interim target for facilities above 100.k p.e. All facilities > 100k p.e. equipped + interim targets for areas ‘at risk’ All facilities at risk equipped with advanced treatment Energy Energy audits for facilities above 100k p.e. Audits for all facilities above 10k p.e. Interim target Interim target for energy neutrality Energy neutrality met and related GHG reduction met Table 2: Implementation planning for the main measures of the preferred option • Detailed explanation of the specific provisions of the proposal Article 1 – Subject matter The objectives of the Directive were expanded to include in addition to environmental protection, the protection of human health, the reduction of greenhouse gas emissions, improving the governance and transparency of the sector, better access to sanitation and – following the recent COVID crisis – the regular monitoring of parameters relevant to public health in urban wastewater.

Article 2 – Definitions In line with the conclusions of the REFIT Evaluation, existing definitions have been slightly clarified. Several definitions related to the new obligations of the Directive have been added, such as ‘urban runoff’, ‘storm water overflows’ (SWOs), ‘combined and separate sewers’, ‘tertiary and quaternary treatments’, ‘micro-pollutant’, ‘sanitation’, ‘antimicrobial resistance’, etc. Article 3 – Collecting systems The obligation to set up urban wastewater collecting systems is extended to all agglomerations with a p.e. of 1.000 or more. A new obligation is introduced to make sure that households are connected to collecting systems where they exist. Article 4 – Individual or other appropriate system (IAS) (new) This is a new article that partially replaces former Article 3. The possibility of using IAS is maintained but limited to exceptional cases. To that effect, new obligations have been introduced: IAS must be properly designed, approved and controlled; Detailed justifications for their use must be provided when they represent more than 2% of the reported load treated in agglomerations of 2 000 p.e. and more. Article 5 – Integrated urban wastewater management plans (new) This new article introduces the obligation to establish locally integrated urban wastewater management plans to combat pollution from rain waters (urban runoff and storm water overflow). The indicative content of the plans, as well as their indicative objectives to be adjusted to local circumstances, is based on the best practices in place and is detailed in Annex V. The plans will need to be drawn up for all agglomerations with a p.e. of 100 000 or more and for all agglomerations with a p.e. of between 10 000 and 100 000 p.e. where storm water overflow or urban runoff poses a risk to the environment or human health. Article 6 – Secondary treatment (former Article 4) The obligation to apply secondary treatment to urban wastewater before it is discharged into the environment is extended to all agglomerations with a p.e. of 1.000 or more (compared to 2.000 p.e. and more in the existing Directive). Article 7 – Tertiary treatment (former Article 5) The main obligations of this article have been amended so that tertiary treatment is now mandatory for all larger facilities treating a load equal to or greater than 100 000 p.e. Tertiary treatment will also need to be applied to discharges from agglomerations with a p.e. between 10 000 and 100 000 p.e. in areas identified by Member States as sensitive to eutrophication. Member States will have to identify areas sensitive to eutrophication on their territory by updating their current list of ‘sensitive areas’ developed under the former Article 5. The other obligations of this Article have been maintained and updated. Article 8 – Quaternary treatment (new) This new article introduces the obligation to apply additional treatment to urban wastewater in order to eliminate the broadest possible spectrum of micro-pollutants. This treatment will be applied to all urban wastewater treatment plants treating a load equal to or greater than 100 000 p.e. by 31 December 2035 at the latest. By 31 December 2040, it will also be applied to all agglomerations with a p.e. between 10 000 and 100 000 in areas where the concentration or accumulation of micro-pollutants poses a risk to human health or the environment. Member States will have to identify those areas on their territory according to criteria specified in this article. Article 9 – Extended producer responsibility (new) This new article introduces the obligation for producers (including importers) to contribute to the costs of the quaternary treatment provided for in Article 8 of the Directive in cases where they place on the national market of the Member States products which at the end of their life lead to the pollution of urban wastewater by micro-pollutants. This financial contribution will be established on the basis of the quantities and toxicity of products placed on the market.

Article 10 - Minimum requirements for producer responsibility organisations (new) This Article establishes the minimum requirements for Producer Responsibility Organisation that are required under Article 9(5). Article 11 – Energy neutrality of urban wastewater treatment plants (new) This new article introduces the obligation to achieve energy neutrality at national level in all treatment facilities above 10 000 p.e. By 31 December 2040, Member States will have to ensure that the total annual renewable energy produced at national level by all urban wastewater treatment plants is equivalent to the total annual energy used by all such urban wastewater treatment plants. To help reach this objective, energy audits of urban wastewater treatment plants will be carried out at regular intervals, with particular focus to identify and utilise the potential for biogas production, while reducing methane emissions. Article 12 – Transboundary cooperation (former Article 9) This article has been slightly amended: a new paragraph 2 is added, requiring – where necessary the Commission to be invited to support discussions between Member States. Paragraph 1 has been amended to add the obligation of immediate notification in case of incidental pollution in order to take into account the recent ‘Odder river’ incident. Article 13 – Local climatic conditions (former Article 10) The article has only been updated due to the new numbering of the articles. Article 14 – Discharges of non-domestic wastewater (former Article 11) This article has been amended to ensure that before issuing an authorisation of discharges of non-domestic wastewater into urban wastewater collecting systems, the competent authorities consult the operator of urban wastewater treatment plants affected by these discharges. In addition, regular monitoring of the non-domestic pollution in the inlets and outlets of the treatment facilities must be ensured so that appropriate measures are taken to identify and address the source(s) of possible pollution. These include, if necessary, the withdrawal of the authorisation issued. Article 15 – Water reuse and discharges of urban wastewater (former Article 12) Paragraph 1 has been amended: Member States will be required to systematically promote the reuse of treated wastewater from all urban wastewater treatment plants. In paragraph 3, the obligation to establish authorisation for discharges from urban wastewater treatment plants is extended to include now all agglomerations of 1.000 p.e. and above. Article 16 – Biodegradable non-domestic discharges (former Article 13) Paragraph 1 has been updated (new numbering). Paragraph 2 has been amended to ensure that requirements established at national level for these discharges are at least equivalent to the requirements set under part B of Annex I to the Directive. Article 17 – Urban wastewater surveillance (new) This new article establishes a national urban wastewater monitoring system to monitor relevant public health parameters in urban wastewater. To that end, Member States will have to set up, by 1 January 2025 at the latest, a coordination structure between the authorities responsible for public health and urban wastewater treatment. This structure will determine which parameters to be monitored and frequency and the method to be applied. Moreover, until the competent public health authorities establish that the SARS-CoV-2 pandemic is not a risk for the population, urban wastewaters from at least 70% of the national population will be monitored. Finally, for all agglomerations of 100 000 p.e. and more, Member States will also have to regularly monitor antimicrobial resistance in the outlets of urban wastewater treatment plants. Article 18 – Risk assessment and management (new)

This is a new article. Member States have the obligation to assess the risks caused by urban wastewater discharges to the environment and human health, and, where necessary, take additional measures on top of this Directive’s minimum requirements to address these risks. These measures should include, where appropriate, the collection and treatment of wastewater from agglomerations smaller than 1.000 p.e., the application of tertiary or quaternary treatment in agglomerations below 10.000 p.e., and additional action to reduce the pollution of rain waters in agglomerations below 10.000 p.e. Article 19 – Access to sanitation (new) This is a new article. Member States will be required to improve and maintain access to sanitation for all, in particular for vulnerable and marginalised. By 31 December 2027, Member States will also have to identify categories of people without access or with a limited access to sanitation, assess the possibilities for improving access to sanitation facilities for such people and encourage the establishment of freely and safely accessible sanitation facilities in public spaces for all agglomerations of 10.000 p.e. or above. Article 20 – Sludge (former Article 14) The article has been updated: sludge will have to be treated, recycled and recovered whenever appropriate in accordance with the waste hierarchy as defined in the Waste Framework Directive and with the requirements of the Sludge Directive, and disposed of in accordance with the requirements of the Waste Framework Directive. To ensure high recovery rates notably for critical materials such as phosphorus, the Commission will be given a mandate to fix minimum recovery rates. Article 21 – Monitoring (former Article 15) New obligations have been introduced: Member States will now have to monitor pollution from urban runoff and storm water overflows, concentrations and loads of the regulated pollutants in this Directive in the outlets of urban wastewater treatment plants, and the presence of micro-plastics (including in sludge). In addition, in line with Article 13, certain non-domestic pollutants will have to be regularly monitored in the inlets and outlets of the wastewater treatment plants. Article 22 – Information on monitoring of implementation (former Article 16) This is a new article. Provisions related to reporting are simplified and replaced by a new system, which does not involve actual reporting but a regular update of a national data set accessible for the European Environmental Agency and the Commission. This will ensure that the system is made more effective by avoiding a long time lag between reference date of the data reported and the actual date of reporting. The article requires Member States to establish data sets gathering data relevant for urban wastewater under this Directive. This can be achieved for instance by monitoring results of the parameters listed in the Annexes to this Directive, antimicrobial resistance, relevant health parameters, etc., but also measures taken to ensure access to sanitation, etc. The establishment of these data sets must be consistent with those established under Article 18 of the recast Drinking Water Directive. Provision is also made for the European Environmental Agency to provide support. Article 23 – National implementation programme (former Article 17) The Article has been amended. The obligation to draw up a national programme for the implementation of this Directive is maintained, and the minimum content of that programme is prescribed. These programmes must include at least: (i) an assessment of the level of implementation of the Directive in relation to its various obligations; (ii) the identification and planning of investments necessary for such implementation; (iii) an estimate of the investments needed to renew existing urban wastewater treatment infrastructures; and (iv) identification of potential sources of funding. Member States will be required to update their national implementation plans at least every 5 years and communicate them to the Commission, unless they can demonstrate that they comply with Articles 3, 4, 6, 7 and 8 of this Directive. Article 24 – Information to the public (new) This is a new article. Member States will have to ensure that adequate and up-to-date information on urban wastewater collection and treatment is available online. Key information such as the level of compliance of the urban wastewater treatment infrastructures with the requirements of this Directive, the volume of urban wastewater collected and treated per year for the household, etc. must also be accessible at least once a year to all persons connected to a collecting system, in the most appropriate form, for instance on the invoices. Article 25 – Access to justice (new) This new article is in line with Article 47 of the Charter of Fundamental Rights and implements the Aarhus Convention with regard to access to justice. It should be possible for the public and NGOs to legally review the decisions taken by MS under this Directive. Article 26 – Compensation (new)

A new article on compensation is introduced, with the aim of ensuring that where damage to health has occurred fully or partially as a result of a breach of national measures adopted pursuant to this Directive, the public concerned is able to claim and obtain compensation for that damage from the relevant competent authorities and, where identified, the natural or legal persons responsible for the violation. Article 27 – Exercise of the delegation (new) This is a new standard article for the adoption of delegated acts. Article 28 – Committee procedure (former Article 18) This is a new standard article for the adoption of implementing acts. Article 29 – Penalties (new) This new article specifies the minimum content of penalties, so that they are effective, proportionate and dissuasive, without prejudice to Directive 2008/99/EC on the protection of the environment through criminal law. Article 30 – Evaluation (new) This new article sets the framework for future evaluations of the Directive (as provided for of the Commission’s Better Regulation guidelines). The first evaluation is envisaged no sooner than 10 years after the end of this Directive’s transposition period. Article 31 – Review (new) At least every five years, the Commission shall present a report to the European Parliament and the Council on the implementation of this Directive, accompanied, where appropriate, by relevant legislative proposals. Article 32 – Repeal and transitional provisions (new) This article is new and introduces provisions to take into account the specific situation of Mayotte, and to maintain the level of environmental protection imposed under the former Article 5 until the new requirements of Article 7 apply. Article 33 – Transposition (former Article 19) This article follows the standard template. Article 34 – Entry into force (new) This article follows the standard template. Provision is made for the Directive to enter into force 20 days after publication in the Official Journal. Article 35 – Addressees (former Article 20) The article remains unchanged.

Former Article 6 has been deleted This article has been deleted for the sake of simplification, as the option of designating ‘less sensitive areas’ is rarely used in practice by Member States. In addition, retaining this option in the revised text of the Directive would reduce the general level of environmental protection sought by the revision of the Directive. Former Article 7 has been deleted The obligation to apply appropriate treatment to urban wastewater before discharge means that Member States must comply with existing EU law, so the relevance of this provision is (legally) limited. The objective of ensuring appropriate treatment of urban wastewater by 31 December 2027 is maintained only in respect of Mayotte, as a transitional provision. Former Article 8 has been deleted This article has been deleted because it is now obsolete – today Member States will need to comply with the requirements of Article 4. This article was also linked to ‘less sensitive areas’, a concept that has been removed from the Directive. Annex I Part A – Collecting systems Remains unchanged. Part B – Discharge from urban wastewater treatment plants to receiving waters Updated with new references, and minimum requirements with regard to secondary (Table 1), tertiary (Table 2) and quaternary treatments (new Table 3). Part C – Non-domestic discharges Amended and now laying down the minimum conditions under which authorisations for non‑domestic discharges referred to in Article 13 may be issued. The link with the Industrial Emissions Directive is made. Part D – Reference methods for monitoring and evaluation of results Requirements for monitoring of urban wastewater treatment discharges have been updated. For agglomerations of 100.000 p.e. and above, at least one sample per day is required. Annex II This Part A corresponds to the former Annex II criteria for identifying ‘sensitive areas’ – they have been maintained and updated. A list of areas to be considered as sensitive to eutrophication by Member States has been also added. Annex III – List of products covered by Article 9 on extended producer responsibility (new) Products covered by Article 9 on extended producer responsibility are those falling within the scope of one of the EU legislation listed in this Annex (pharmaceuticals and cosmetics).

Annex IV – Industrial sectors Former Annex III – it remains unchanged. Annex V – Content of integrated urban wastewater management plan under Article 5 (new) This annex lists the minimum content of the integrated urban wastewater management plan prepared pursuant to Article 5. These plans must include an analysis of the initial situation in the drainage area of the urban wastewater treatment plant, the definition of objectives for the reduction of pollution from storm water overflows and urban runoff for that area and the identification of the measures to be taken to achieve those objectives. The objectives must include: (i) an indicative target that storm water overflows do not represent more than 1% of the annual volume and load collected of urban wastewater, to be calculated in dry weather conditions; and (ii) the phasing out of untreated discharges of urban runoff through separate collection systems, unless it is demonstrated that they are of sufficient quality not to have adverse effects on the quality of receiving waters. Annex VI – Information to the public (new) This annex details the information to be provided to the public under new Article 24. Annex VII (new) This is a standard annex which lists the repealed Directive and its successive amendments, as well as their dates of transposition and application. Annex VIII (new) This is the new table of correspondence between Council Directive 91/271/EEC and the new recast Directive proposal. 🡻 91/271/EEC (adapted) 2022/0345 (COD) Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning urban wastewater treatment (recast) (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing ⌦ on the Functioning of ⌫ the European ⌦ Union ⌫ Economic Community, and in particular ⌦ Article 192(1) ⌫ 130s thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the ordinary legislative procedure, Whereas: ⇩ new (1)Council Directive 91/271/EEC has been substantially amended several times. Since further amendments are to be made, that Directive should be recast in the interests of clarity. 🡻 91/271/EEC recital 1 (adapted) Whereas the Council Resolution of 28 June 1988 on the protection of the North Sea and of other waters in the Community invited the Commission to submit proposals for measures required at Community level for the treatment of urban waste water; 🡻 91/271/EEC recital 2 (adapted) Whereas pollution due to insufficient treatment of waste water in one Member State often influences other Member States' waters; whereas in accordance with Article 130r, action at Community level is necessary; 🡻 91/271/EEC recital 3 Whereas to prevent the environment from being adversely affected by the disposal of insufficiently-treated urban waste water, there is a general need for secondary treatment of urban waste water;

🡻 91/271/EEC recital 4 Whereas it is necessary in sensitive areas to require more stringent treatment; whereas in some less sensitive areas a primary treatment could be considered appropriate; 🡻 91/271/EEC recital 5 Whereas industrial waste water entering collecting systems as well as the discharge of waste water and disposal of sludge from urban waste water treatment plants should be subject to general rules or regulations and/or specific authorizations; 🡻 91/271/EEC recital 6 Whereas discharges from certain industrial sectors of biodegradable industrial waste water not entering urban waste water treatment plants before discharge to receiving waters should be subject to appropriate requirements; 🡻 91/271/EEC recital 7 Whereas the recycling of sludge arising from waste water treatment should be encouraged; whereas the disposal of sludge to surface waters should be phased out; 🡻 91/271/EEC recital 8 Whereas it is necessary to monitor treatment plants, receiving waters and the disposal of sludge to ensure that the environment is protected from the adverse effects of the discharge of waste waters; 🡻 91/271/EEC recital 9 Whereas it is important to ensure that information on the disposal of waste water and sludge is made available to the public in the form of periodic reports; 🡻 91/271/EEC recital 10

Whereas Member States should establish and present to the Commission national programmes for the implementation of this Directive; 🡻 91/271/EEC recital 11 Whereas a Committee should be established to assist the Commission on matters relating to the implementation of this Directive and to its adaptation to technical progress, ⇩ new (2)Directive 91/271/EEC sets the legal framework for the collection, treatment and discharge of urban wastewater and the discharge of biodegradable wastewaters from certain industrial sectors. Its objective is to protect the environment from being adversely affected by insufficiently treated urban wastewater discharges. This Directive should continue to pursue the same objective, whilst also contributing to the protection of public health, when for instance urban wastewater is discharged in bathing waters or in water bodies used for the abstraction of drinking water, or when urban wastewater is used as an indicator for parameters relevant for public health. It should also improve access to sanitation and to key information related to the governance of the urban wastewater collection and treatment activities. Finally, this Directive should contribute to the progressive elimination of greenhouse gas (GHG) emissions from urban wastewater collection and treatment activities, notably by further reducing nitrogen emissions but also by promoting energy efficiency and production of renewable energies, and thus should contribute to the 2050 objective of Climate Neutrality established under Regulation (EU) 2021/1119 of the European Parliament and of the Council. (3)In 2019, the Commission performed an evaluation of Council Directive 91/271/EEC under the Regulatory Fitness and Performance Programme (the ‘evaluation’). It became apparent from that exercise that certain provisions of the Directive needed to be updated. Three important sources of remaining load of pollution from urban wastewater that could be avoided were identified, namely storm water overflows and urban runoff, potentially mal-functioning individual systems (i.e. systems treating domestic wastewater that is not entering collecting systems) and small agglomerations that are currently not completely covered by Directive 91/271/EEC. Those three sources of pollution constitute a significant pressure on surface water bodies in the Union. Moreover, the report of the evaluation also highlighted the need to improve the transparency and governance of the urban wastewater activities, to seize the opportunity offered by the urban wastewater treatment sector to use its potential for renewable energy development and make tangible steps towards energy neutrality as a contribution to climate neutrality and to harmonise urban wastewater surveillance of health parameters, such as the COVID-19 virus and its variants, as a support for public health action. (4)Small agglomerations constitute a significant pressure on 11 % of the surface water bodies in the Union. To better tackle the pollution from such agglomerations, and to prevent discharges of untreated urban wastewater into the environment, the scope of this Directive should include all agglomerations of 1 000 population equivalent (p.e.) and above. (5)In order to ensure effective treatment of urban wastewater before discharge into the environment, all urban wastewaters from agglomerations of 1 000 p.e. and above should be collected in centralised collecting systems. Where such systems are already in place, Member States should ensure that all sources of urban wastewater are connected to them. (6)Exceptionally, where it can be demonstrated that the establishment of a centralised urban wastewater collecting system would produce no environmental benefit or involve excessive costs, Member States should be allowed to use individual systems to treat urban wastewater, as long as they ensure the same level of treatment as secondary and tertiary treatment. For this purpose, Member States should establish national registers to identify individual systems used on their territory and take all necessary measures to ensure that the design of such systems is adequate, that the systems are properly maintained and that they are subject to a regular compliance control. In particular, Member States should ensure that individual systems used for the collection and storage of urban wastewater are impervious and leak-proof, and that monitoring and inspection of the systems are carried out at regular and fixed intervals. (7)During rainfall, storm water overflows and urban runoff represent a sizeable remaining source of pollution discharged into the environment. Those emissions are expected to increase due to the combined effects of urbanisation and progressive change of the rain regime linked with climate change. Solutions to reduce that source of pollution should be defined at local level taking into account the specific local conditions. They should be based on an integrated quantitative and qualitative water management in urban areas. Therefore, Member States should ensure that integrated urban wastewater management plans are established at local level for all agglomerations of 100 000 p.e. and above as those agglomerations are responsible for a significant share of the pollution emitted. Furthermore, integrated urban wastewater management plans should also be put in place for agglomeration of between 10 000 p.e. and 100 000 p.e. where storm water overflows or urban runoff poses a risk for the environment or public health. (8)In order to ensure that the integrated urban wastewater management plans are cost-effective, it is important that they are based on best practices in advanced urban areas. Therefore, the measures to be considered should be based on a thorough analysis of the local conditions and should favour a preventive approach aiming at limiting the collection of unpolluted rain waters and optimising the use of existing infrastructures. With a preference for ‘green’ developments, new grey infrastructures should only be envisaged where absolutely necessary. In order to protect the environment, in particular the coastal and marine environment, and public health from being adversely affected by the discharge of insufficiently treated urban wastewater, secondary treatment should be applied to all discharges of urban wastewater from agglomerations of 1 000 p.e. and above. (9)The evaluation showed that significant reductions of nitrogen and phosphorus emissions were achieved through the implementation of Directive 91/271/EEC. Nevertheless, urban wastewater treatment plants remain, according to the evaluation, an important pathway of those pollutants into the environment, directly leading to eutrophication of water bodies and seas in the Union. Part of this pollution can be avoided as technological progress and best practices in place show that emission limit values established under Directive 91/271/EEC for nitrogen and phosphorus are outdated and should be strengthened. Tertiary treatment should be systematically imposed to all urban wastewater treatment plants of 100 000 p.e. and above, as such plants represent an important remaining source of nitrogen and phosphorus discharge. (10)Tertiary treatment should also be mandatory in agglomerations of 10 000 p.e. and above that are discharging in areas subject to, or at risk of, eutrophication. In order to ensure that efforts to limit eutrophication are coordinated at the level of the relevant basins for the whole catchment zone, areas where eutrophication is considered an issue according to currently available data should be listed in this Directive. Additionally, to ensure coherence between relevant Union legislation, Member States should identify other areas subject to, or at risk of, eutrophication on their territory, notably on the basis of data collected under Directive 2000/60/EC of the European Parliament and of the Council, Directive 2008/56/EC of the European Parliament and of the Council and Council Directive 91/676/EEC. The reinforcement of the limit values, a more coherent and inclusive identification of the areas sensitive to eutrophication and the obligation to ensure tertiary treatment for all large facilities will, in combination, contribute to limit eutrophication. Since this will require additional investments on the national level, Member States should be given sufficient time to establish the required infrastructure. (11)Recent scientific knowledge underpinning several Commission strategies highlight the need to take action to address the issue of micro-pollutants, which are now detected in all waters in the Union. Some of those micropollutants are hazardous for public health and the environment even in small quantities. An additional treatment, i.e. quaternary treatment, should therefore be introduced in order to ensure that a large spectrum of micro-pollutants is removed from urban wastewater. Quaternary treatment should first focus on organic micro-pollutants, which represent a significant part of the pollution and for which removal technologies are already designed. The treatment should be imposed based on the precautionary approach combined with a risk-based approach. Therefore, all urban wastewater treatment plants of 100 000 p.e. and above should provide quaternary treatment, as those facilities represent a significant share of micro-pollutant discharges in the environment and the removal of micro-pollutants by urban wastewater treatment plants at such scale is cost-effective. For agglomerations of between 10 000 p.e. and 100 000 p.e., Member States should be required to apply quaternary treatment to areas identified as sensitive to pollution with micro-pollutants based on clear criteria, which should be specified. Such areas should include locations where treated urban wastewater discharge to water bodies result in low dilution ratios, or where the receiving water bodies are used for the production of drinking water or as bathing waters. In order to avoid the requirement of quaternary treatment for agglomerations of between 10 000 p.e. and 100 000 p.e., Member States should be required to demonstrate the absence of risks to the environment or to public health on the basis of a standardised risk assessment. In order to give Member States enough time to plan and deliver the necessary infrastructures, the requirement of quaternary treatment should progressively apply until 2040 with clear interim objectives. (12)In order to ensure the continued compliance of discharges from wastewater treatment plants with the requirements for secondary, tertiary and quaternary treatment, samples should be taken in accordance with the requirements of this Directive and those samples should comply with the parametric values that it sets out. In order to take into account possible technical variations in the results from those samples, a maximum number of samples failing to conform to those parametric values should be laid down. (13)The quaternary treatment necessary to remove micro-pollutants from urban wastewater will imply additional costs, such as costs related to monitoring and new advanced equipment to be installed in certain urban wastewater treatment plants. In order to cover these additional costs and in accordance with the polluter-pays principle expressed in Article 191(2) of the Treaty on the Functioning of the European Union (TFEU), it is essential that the producers placing on the Union market products containing substances which, at the end of their life, are found as micro-pollutants in urban wastewaters (‘micro-pollutant substances’) take responsibility for the additional treatment required to remove those substances, generated in the context of their professional activities. A system of extended producer responsibility is the most appropriate means to achieve this, as it would limit the financial impact on the taxpayer and water tariff, while providing an incentive to develop greener products. Pharmaceuticals and cosmetic residues currently represent the main sources of micro-pollutants found in urban wastewater requiring an additional treatment (quaternary treatment). Therefore, extended producer responsibility should apply to those two product groups. (14)Exonerations from the extended producer responsibility obligations should nevertheless be possible where products are placed on the market in small quantities, i.e. less than 2 tonnes of products, since the additional administrative burden for the producer would in such cases be disproportionate compared to the environmental benefits. Exonerations should also be possible when the producer can demonstrate that no micro-pollutants are generated at the end of life of a product. It might be the case for instance where it can be proven that the residues from a product are rapidly biodegradable in the wastewaters and the environment or not reaching the urban wastewater treatment plants. The Commission should be empowered to adopt implementing acts to establish detailed criteria to identify the products placed on the market that do not generate micro-pollutants in wastewaters at the end of their life. When developing these criteria, the Commission should take into account scientific or other available technical information, including relevant international standards. (15)In order to avoid possible internal market distortions, minimum requirements for the implementation of the extended producer responsibility should be established in this Directive, while the practical organisation of the system should be decided at national level. The contributions of the producers should be proportionate to the quantities of the products they place on the market and the hazardouness of their residues. The contributions should cover, but not exceed, the costs for the monitoring activities for micro-pollutants, the collection, reporting and impartial verification of statistics on the quantities and hazardouness of products placed on the market, and the application of the quaternary treatment to urban wastewater in an efficient manner and in accordance with this Directive. Since urban wastewater is treated collectively, it is appropriate to introduce a requirement for producers to join a centralised organisation which can implement their obligations under the extended producer responsibility on their behalf.

(16)The evaluation has also shown that the wastewater treatment sector offers the opportunity to significantly reduce its own energy consumption and to produce renewable energy, for example by better use of the available surfaces in urban wastewater treatment plants for solar energy production or by producing biogas from sludge. The evaluation also illustrated that, without clear legal obligations, only partial progress can be expected in this sector. In this context, Member States should be required to ensure that the total annual energy used by all urban wastewater treatment plants on their national territory treating a load of 10 000 p.e. and above does not exceed the production of energy from renewable sources as defined in Article 2(1) of Directive (EU) 2018/2001 of the European Parliament and of the Council, by those urban wastewater treatment plants. That objective should be progressively met with interim targets by 31 December 2040. Reaching this energy neutrality target will contribute to reduce the avoidable greenhouse gas (GHG) emissions from the sector by 46 %, while supporting the achievement of the 2050 climate neutrality objectives and related national and Union objectives, [such as the objectives set out in Regulation (EU) 2018/842 of the European Parliament and of the Council. Encouraging EU-based biogas or solar energy production while enhancing energy efficiency measures in line with the Energy Efficiency First principle, which means taking utmost account of cost-efficient energy efficiency measures in shaping energy policy and making relevant investment decisions, will also help reduce the Union energy dependence, one of the objectives expressed in the Commission "Repower EU" Plan. It is also in line with Directive (EU) 2018/844 of the European Parliament and of the Council and with Directive (EU) 2018/2001 in which urban wastewater treatment sites are qualified as ‘go-to' areas for renewables, meaning a location designated as particularly suitable for the installation of plants for the production of energy from renewable sources. In order to reach the objective of energy neutrality via optimal measures for each urban wastewater treatment plant and for the collection system, Member States should ensure that energy audits are carried out in accordance with Article 8 of Directive 2012/27/EU of the European Parliament and of the Council every four years. Those audits should include an identification of the potential for cost-effective use or production of renewable energy following the criteria set out in Annex VI to Directive 2012/27/EU. (17)Since the transboundary nature of water pollution requires cooperation between neighbouring Member States or third countries in addressing such pollution and identifying measures to tackle its source, Member States should be required to inform each other or the third country if significant water pollution originating from urban wastewater discharges in one Member State or third country impacts or is likely to impact the water quality of another Member State or third country. Such information should be immediate in case of incidental pollution significantly affecting downstream water bodies. The Commission should be informed and, if necessary, participate in meetings at the request of Member States. It is also important to tackle the transboundary pollution from third countries sharing the same water bodies with some of the Member States. For the purpose of dealing pollution coming or arriving in third countries, the cooperation and coordination with third countries may be carried out in the framework of the United Nations Economic Commission for Europe (UNECE) Water Convention or other relevant regional Conventions such as the Regional Seas or Rivers Conventions. (18)In order to ensure the protection of the environment and human health, Member States should ensure that the urban wastewater treatment plants built to comply with the requirements of this Directive are designed, constructed, operated, and maintained to ensure sufficient performance under all normal local climatic conditions. (19)Urban wastewater treatment plants also receive non-domestic wastewater, including industrial wastewater, which can contain a range of pollutants not explicitly covered by Directive 91/271/EEC, such as heavy metals, micro-plastics, micro-pollutants and other chemicals. In most instances, there is a poor understanding and knowledge of such pollution which could deteriorate the functioning of the treatment process and contribute to the pollution of the receiving waters, but also prevent the recovery of sludge and the re-use of treated wastewater. Member States should therefore regularly monitor and report on such non-domestic pollution that enters the urban wastewater treatment plants and is discharged into water bodies. To prevent pollution from non-domestic wastewater discharges at source, releases from industries or enterprises connected to collecting systems should be subject to prior authorisation. In order to ensure that collecting systems and urban wastewater treatment plants are technically capable of receiving and treating the incoming pollution, the operators who manage urban wastewater treatment plants receiving non-domestic wastewater should be consulted before those permits are issued and should be able to consult the issued permits in order to be able to adapt their treatment processes. Where non-domestic pollution is identified in the incoming waters, Member States should take appropriate measures to reduce pollution at source, by enhancing the monitoring of pollutants in collecting systems so that the pollution sources can be identified and, where necessary, by reviewing the authorisations provided to relevant, connected urban wastewater treatment plants. The water resources of the Union are increasingly under pressure, resulting in permanent or temporary water scarcity in some areas of the Union. The Union’s ability to respond to the increasing pressures on water resources could be improved through a wider reuse of treated urban wastewater, limiting freshwater abstraction from surface and groundwater bodies. Therefore, the reuse of treated urban wastewater should be encouraged and applied whenever appropriate, whilst taking into account the need to ensure that the objectives of good ecological and chemical status of the receiving bodies, as defined in Directive 2000/60/EC, are met. The reinforcement of the requirements for the treatment of urban wastewater, and the actions to better monitor, track and reduce pollution at source, will have impacts on the quality of treated urban wastewater, and will therefore support water reuse. Where water reuse serves the purpose of agricultural irrigation, it should be carried out in accordance with Regulation (EU) 2020/741 of the European Parliament and of the Council . (20)In order to ensure a proper implementation of this Directive and notably the respect of the emission limit values, it is important to monitor discharges of treated urban wastewater into the environment. The monitoring should be done through the establishment at national level of a mandatory prior authorisation system in order to discharge the treated urban wastewater into the environment. In addition, in order to prevent unintentional discharges of plastic biomedia the environment from urban wastewater treatment plants using this technique, it is essential to include in the discharge authorisations specific obligations to continuously monitor and prevent such discharges. (21)In order to ensure the protection of the environment, direct discharges of biodegradable non-domestic wastewater into the environment from certain industrial sectors should be subject to prior authorisation on national level and appropriate requirements. Those requirements should ensure that direct discharges from certain industrial sectors are subject to secondary, tertiary and quaternary treatment as necessary for the protection of human health and the environment. (22)According to Article 168(1) TFEU, Union action complements national policies and is to be directed towards improving public health and preventing diseases. In order to ensure optimal use of relevant public health data from urban wastewaters, urban wastewater surveillance should be set up and used for preventive or early warning purposes, for instance in the detection of specific viruses in urban wastewater as a signal of the emergence of epidemics or pandemics. Member States should establish a permanent dialogue and coordination between competent authorities responsible for public health and competent authorities responsible for urban wastewater management. In the context of that coordination, a list of parameters relevant for public health to be monitored in urban wastewaters should be established, as well as the frequency and location of the sampling. This approach will take advantage of and complement other Union initiatives in the field of public health protection, such as environmental monitoring that includes wastewater surveillance. Based on information gathered during the COVID-19 pandemic and experience gained from the implementation of the Commission Recommendation on a common approach to establish a systematic surveillance of SARS-CoV-2 and its variants in wastewaters in the EU (the ‘recommendation’), Member States should be required to monitor health parameters related to SARS-CoV-2 and its variants on a regular basis. In order to ensure that harmonised methods are used, Member States should, to the extent possible, use sampling and analysis methods set out in the recommendation for the monitoring of SARS-CoV-2 and its variants. (23)The Union recognises the importance of tackling the issue of antimicrobial resistance (AMR) and adopted in 2017 the European One Health Action Plan against AMR. According to the World Health Organisation (WHO), wastewater is recognised and documented as major sources of antimicrobial agents and their metabolites, as well as antimicrobial-resistant bacteria and their genes. In order to increase the knowledge on the main sources of AMR, it is necessary to introduce a monitoring obligation for the presence of AMR in urban wastewaters to further develop our scientific knowledge and potentially take adequate action in the future. (24)In order to protect the environment and human health, Member States should identify the risks caused by urban wastewaters management. On the basis of that identification, and where necessary to comply with the requirements of the Union water legislation, Member States should take more stringent measures for the urban wastewater collection and treatment than the measures required to comply with the minimum requirements set out in this Directive. Depending on the situation, those more stringent measures can include, inter alia, the establishment of collecting systems, the development of integrated urban wastewater management plans or the application of secondary, tertiary or quaternary treatment to urban wastewater for agglomerations or urban wastewater treatment plants that do not reach the p.e. thresholds triggering the application of the standard requirements. They can also include more advanced treatment than the treatment necessary to respect the minimum requirements or disinfection of treated urban wastewaters necessary to comply with Directive 2006/7/EC of the European Parliament and of the Council. (25)Sustainable Development Goal 6 and the associated target requiring Member States to ‘achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations’ by 2030. Furthermore, Principle 20 of the European Pillar of Social Rights states that everyone has the right to access essential services of good quality, including water and sanitation. Against that background, and in accordance with the recommendations in the WHO Guidelines for Sanitation and Health and the provisions of the Protocol on Water and Health Member States should tackle the issue of access to sanitation at national level. That should be done through actions aimed at improving access to sanitation for all, for example by setting up sanitation facilities in public spaces, as well as by encouraging the availability of appropriate sanitation facilities in public administrations and public buildings free of charge and\or making them affordable to all. Sanitation facilities should allow the safe management and disposal of human urine, faeces and menstrual blood. They should be safely managed, which implies that they should be accessible to all at all times, including for people with particular needs, such as children, older persons, persons with disabilities and homeless people, that they should be placed in a location that ensures minimal risk to the safety of users, and that they should be hygienically and technically safe to use. Such facilities should also be sufficient in number to ensure that the needs of people are met and waiting times are not unreasonably long. (26)The specific situation of minority cultures, such as Roma and Travellers, whether settled or not, and in particular their lack of access to sanitation, was acknowledged in the Communication from the Commission of 7 October 2020 ‘A Union of Equality: EU Roma strategic framework for equality, inclusion and participation’, which calls for increasing effective equal access to essential services. Overall, it is appropriate that Member States pay particular attention to vulnerable and marginalised groups by taking the necessary measures to improve access to sanitation for those groups. It is important that the identification of those groups is coherent with Article 16(1) of Directive (EU) 2020/2184 of the European Parliament and of the Council. Measures to improve access to sanitation by vulnerable and marginalised groups might include providing sanitation facilities in public spaces for free or for a low service fee, improving or maintaining the connection to adequate systems to collect urban wastewater, and raising awareness of the nearest sanitation facilities. (27)According to the EU Human Rights Guidelines on Safe Drinking Water and Sanitation, particular attention should be given to the needs of women and girls, as they are particularly at risk and exposed to attacks, sexual and gender-based violence, harassment and other threats to their safety when accessing sanitation facilities outside their homes. This is in line with the Council Conclusions on Water Diplomacy, which reaffirm the importance of integrating a gender perspective into water diplomacy. Therefore, Member States should pay particular attention to women and girls as being a vulnerable group and should take the necessary measures to improve or maintain a safe access to sanitation for them. (28)The evaluation concluded that sludge management could be improved to better align it with the principles of the circular economy and of the waste hierarchy as defined in Article 4 of Directive 2008/98/EC. The actions to better monitor and reduce pollution at source from non-domestic discharges will help improving the quality of the sludge produced and ensure its safe use in agriculture. In order to ensure a proper and safe recovery of nutrients, including the critical substance phosphorus, from the sludge, minimum recovery rates should be defined at Union level. (29)Additional monitoring is necessary to verify compliance with the new requirements concerning micro-pollutants, non-domestic pollution, energy neutrality, GHG emissions, storm water overflows and urban runoff. To verify the performance of the quaternary treatment concerning the reduction of micro-pollutants in urban wastewater discharges, it is sufficient to monitor a limited set of representative micro-pollutants. The monitoring frequencies should be aligned to the current best practices, as currently practiced in Switzerland. To remain cost-effective, those obligations should be adapted to the size of the urban wastewater treatment plants and of the agglomerations. The monitoring will also contribute to provide data for the overall Environmental Monitoring Framework as set up under the 8th Environmental Action Programme, and more specifically feed the Zero Pollution Monitoring Framework underpinning it. (30)In order to reduce administrative burden and better use the possibilities offered by digitalisation, the reporting on the implementation of the Directive should be improved and simplified by removing the obligation for Member States to report every two years to the Commission and for the Commission to publish bi-yearly reports. It should be replaced by a requirement for Member States to improve, with the support of the European Environment Agency (EEA), the existing national standardised data sets established under Directive 91/271/EEC, and to regularly update them. Permanent access to the national databases should be provided to the Commission and the EEA. In order to ensure complete information on the application of this Directive, the data sets should include information on compliance of urban wastewater treatment plants with the treatment requirements (pass/fail, loads and concentration of pollutants discharged), on the level of achievement of the objectives of energy neutrality, on GHG emissions of the treatment plants above 10 000 p.e. and on measures taken by the Member States in the context of storm water overflows/ urban runoff, access to sanitation and treatment by individual systems. Moreover, full coherence with Regulation (EC) 166/2006 of the European Parliament and of the Council should be ensured to optimise the use of the data, as well as to support full transparency. (31)In order to ensure a timely and proper implementation of this Directive, it is essential that Member States establish a national implementation programme including long-term programming of the required investments accompanied with a financing strategy. Those national programmes should be reported to the Commission. To limit administrative burden, that requirement should not apply to Member States showing a level of compliance of more than 95 % with regard to the main obligations to collect and treat wastewater. (32)The urban wastewater collection and treatment sector is specific, operating as a captive market, with public and small enterprises being connected to the collecting system without having the possibility to choose their operators. It is therefore important to ensure public access to operators’ key performance indicators, such as the level of treatment achieved, the costs of treatment, the energy used and produced, and the related GHG emissions and carbon footprint. In order to make the public more aware of the implications of urban wastewater treatment, key information on the annual wastewater collection and treatment costs for each household should be provided in an easily accessible manner, for instance on the invoices, while other detailed information should be accessible online, on a website of the operator or the competent authority. (33)Directive 2003/4/EC of the European Parliament and of the Council guarantees the right of access to environmental information in the Member States in line with the 1998 Aarhus Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (the ‘Aarhus Convention’). The Aarhus Convention encompasses broad obligations related both to making environmental information available upon request and actively disseminating such information. It is important that the provisions of this Directive related to access to information and data-sharing arrangements complement that Directive, by establishing the obligation to make available to the public online information on the collection and treatment of urban wastewater in a user-friendly manner, without creating a separate legal regime. (34)The effectiveness of this Directive and its aim of protecting public health in the context of the Union’s environment policy require that natural or legal persons, or where appropriate their duly constituted organisations, be able to rely on it in legal proceedings and that the national courts be able to take this Directive into consideration as an element of Union law in order, inter alia, to review decisions of a national authority where appropriate. In addition, according to settled case law of the Court of Justice, under the principle of sincere cooperation laid down in Article 4(3) of the Treaty on European Union (TEU), it is for the courts of the Member States to ensure judicial protection of a person’s rights under Union law. Furthermore, Article 19(1) TEU requires Member States to provide remedies sufficient to ensure effective judicial protection in the fields covered by Union law. In addition, in accordance with the Aarhus Convention, members of the public concerned should have access to justice in order to contribute to the protection of the right to live in an environment which is adequate for personal health and well-being. (35)To adapt this Directive to scientific and technical progress, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending certain parts of the Annexes with regard to the requirements for the secondary, tertiary and quaternary treatment and the requirements for specific authorisations for discharges of non-domestic wastewater into collecting systems and urban wastewater treatment plants and in respect of supplementing this Direcrive by establishing minimum reuse and recycling rates for phosphorus and nitrogen from sludge. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(36)In order to ensure uniform conditions for the implementation of this Directive, implementing powers should be conferred on the Commission for the adoption of standards for the design of individual systems, for the adoption of monitoring and assessment methods for the indicators of the quaternary treatment, for the establishment of common conditions and criteria for the application of the exoneration for certain products from extended producer responsibility, for establishing methodologies to support the development of integrated urban wastewater management plans and to measure antimicrobial resistance and micro-plastics in urban wastewater, and for the adoption of the format of, and modalities for, presenting the information to be provided by Member States and compiled by the EEA on the implementation of this Directive. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. (37)Member States should lay down rules on penalties applicable to infringements of national provisions adopted pursuant to this Directive and should take all measures necessary to ensure that they are implemented. The penalties should be effective, proportionate and dissuasive, taking into account specificities of Small and Medium Enterprises. (38)Pursuant to the Interinstitutional Agreement on Better Law-Making, the Commission should carry out an evaluation of this Directive within a certain period of time from the date set for its transposition. That evaluation should be based on experience gained and data collected during the implementation of this Directive, on any available WHO recommendations, and on relevant scientific, analytical, and epidemiological data. In the evaluation, particular attention should be given to the possible necessity to adapt of the list of products to be covered by extended producer responsibility according to the evolution of the range of products placed on the market, the improvement of knowledge on the presence of micro-pollutants in the wastewaters and their impacts on public health and the environment, and data from the new monitoring obligations on micro-pollutants in the inlets and outlets of the urban wastewater treatment plants. (39)Directive 91/271/EEC provides for specific deadlines for Mayotte due to its inclusion in 2014 as an outermost region within the meaning of Article 349 of the Treaty on the Functioning of the European Union. Therefore, the application of the obligations to establish collecting systems and apply secondary treatment to urban wastewater from agglomeration of 2 000 p.e. and above should be deferred with respect to Mayotte. (40)In order to ensure the continuity of the protection of the environment, it is important that Member States maintain at least the current level of tertiary treatment until the new requirements for the reduction of phosphorus and nitrogen become applicable. Therefore, Article 5 of Council Directive 91/271/EC should continue to apply until those new requirements become applicable. (41)Since the objectives of this Directive, namely to protect the environment and public health, to progress towards climate neutrality of urban wastewater collection and treatment activities, to improve access to sanitation and to ensure a regular surveillance of parameters relevant to public health, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale and effects of