Community financial assistance with respect to the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant in Bulgaria ‘Kozloduy Programme’ * European Parliament legislative resolution of 20 May 2010 on the proposal for a Council regulation on Community financial assistance with respect to the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant in Bulgaria - ‘Kozloduy Programme’ (COM(2009)0581 – C7-0289/2009 – 2009/0172(NLE))
Date: 2010-05-20
Institutions: Committee on Industry, Research and Energy, European Parliament
Subjects: Bulgaria, EU financing, EU programme, decommissioning of power stations, financial aid, nuclear power station, nuclear safety








CE2011161EN.01027301.xml










31.5.2011   


EN


Official Journal of the European Union


CE 161/273





Thursday 20 May 2010Community financial assistance with respect to the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant in Bulgaria ‘Kozloduy Programme’ *
P7_TA(2010)0188
European Parliament legislative resolution of 20 May 2010 on the proposal for a Council regulation on Community financial assistance with respect to the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant in Bulgaria - ‘Kozloduy Programme’ (COM(2009)0581 – C7-0289/2009 – 2009/0172(NLE))
2011/C 161 E/38
(Consultation)

The European Parliament,
having regard to the Commission proposal to the Council (COM(2009)0581),
having regard to Article 30 of the Act concerning the conditions of Accession of the Republic of Bulgaria and Romania and the adjustments to the treaties on which the European Union is founded, concerning Reactors 1 to 4 of the Kozloduy nuclear power plant in Bulgaria,
having regard to the Communication from the Commission to the Council and the European Parliament entitled ‘Nuclear safety in the European Union’ (COM(2002)0605),
having regard to Article 203 of the Euratom Treaty, pursuant to which the Council consulted Parliament (C7-0289/2009),
having regard to Rule 55 of its Rules of Procedure,
having regard to the report of the Committee on Industry, Research and Energy and the opinions of the Committee on Budgets and the Committee on the Environment, Public Health and Food Safety (A7-0142/2010),






1.


Approves the Commission proposal as amended;










2.


Considers that the proposal for a Council regulation is compatible with the ceiling for subheading 1a of the multiannual financial framework (MFF) for 2007-2013 but that the margin remaining in subheading 1a for 2011-2013 is very limited; stresses that the funding of new activities must not jeopardise existing programmes and initiatives under subheading 1a;










3.


Reiterates its call, therefore, for the presentation of a multiannual strategy for the Kozloduy decommissioning programme, as well as for other political priorities under subheading 1a, in the context of the mid-term review of the current MFF, accompanied by concrete proposals to adjust and revise it before the end of the first semester of 2010 by using all mechanisms available under the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (1) (IIA of 17 May 2006), particularly those in points 21 to 23 thereof;










4.


Points out that the annual amount for the Kozloduy decommissioning programme will be determined during the annual budgetary procedure in accordance with the provisions of point 38 of the IIA of 17 May 2006;










5.


Calls on the Commission to alter its proposal accordingly, pursuant to Article 106a of the Euratom Treaty and Article 293(2) of the Treaty on the Functioning of the European Union;










6.


Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;










7.


Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;










8.


Instructs its President to forward its position to the Council and the Commission.










TEXT PROPOSED BY THE COMMISSION


AMENDMENT





Amendment 1






Proposal for a regulation


Recital 1











(1)


Bulgaria 
committed itself
 to the closure of Units 1 and 2 and Units 3 and 4 of the Kozloduy Nuclear Power Plant by 31 December 2002 and 31 December 2006, respectively and to the subsequent decommissioning of these units. The European Union expressed its willingness to continue to provide financial assistance up to 2009 as an extension of the pre-accession aid planned under the Phare programme in support of Bulgaria’s decommissioning efforts.












(1)




During the accession negotiations in 2005,
 Bulgaria 
agreed
 to the closure of Units 1 and 2 and Units 3 and 4 of the Kozloduy Nuclear Power Plant by 31 December 2002 and 31 December 2006, respectively and to the subsequent decommissioning of these units. The European Union expressed its willingness to continue to provide financial assistance up to 2009 as an extension of the preaccession aid planned under the Phare programme in support of Bulgaria’s decommissioning efforts. 
The European Union also gave assurances at that time that the financial assistance would be considered as part of an overall review of Community support for the period 2007-2013.











Amendment 2






Proposal for a regulation


Recital 2











(2)


The 2005 Treaty concerning the accession of the Republic of Bulgaria and Romania to the European Union, and in particular Article 30 of the Act concerning the conditions of accession of the Republic of Bulgaria and Romania and the adjustments to the Treaties on which the European Union is founded, established in view of Bulgaria’s commitment to close Unit 3 and Unit 4 of the Kozloduy Nuclear Power Plant an assistance programme (hereinafter referred to as ‘Kozloduy Programme’) with a budget of EUR 210 million for the period 2007 to 2009.












(2)


The 2005 Treaty concerning the accession of the Republic of Bulgaria and Romania to the European Union, and in particular Article 30 of the Act concerning the conditions of accession of the Republic of Bulgaria and Romania and the adjustments to the Treaties on which the European Union is founded, established in view of Bulgaria’s commitment to close Unit 3 and Unit 4 of the Kozloduy Nuclear Power Plant an assistance programme (hereinafter referred to as ‘Kozloduy Programme’) with a budget of EUR 210 million for the period 2007 to 2009. 
That programme includes assistance to cover the capacity loss as a consequence of the closure of Kozloduy nuclear power plant
.









Amendment 3






Proposal for a regulation


Recital 2 a (new)





 










(2a)






The principles of Union solidarity and equal treatment require an even-handed approach to be taken, now as in the past, to Member States in need of support funding for nuclear decommissioning, following commitments to close nuclear power plants units, as laid down in their Accession Treaties or in attached Protocols.











Amendment 4






Proposal for a regulation


Recital 4











(4)


The Union recognises the effort made and the good progress achieved by Bulgaria in the decommissioning preparation stage of the Kozloduy Programme utilising the community funds put in place until 2009, and the need for further financial support beyond 2009 in order to continue the progress with the actual dismantling operations.












(4)


The Union recognises the effort made and the good progress achieved by Bulgaria in the decommissioning preparation stage of the Kozloduy Programme utilising the Community funds put in place until 2009, and the need for further financial support beyond 2009 in order to continue the progress with the actual dismantling operations 
in accordance with the 2005 Accession Treaty, whilst applying the highest safety standards
.









Amendment 5






Proposal for a regulation


Recital 5











(5)


It is equally important to use the Kozloduy Nuclear Power Plant’s own resources, as this contributes to the availability of the necessary expertise and at the same time mitigates the social and economic impact of the early closure by continuously employing the staff from the closed nuclear power plant. The continued financial support is therefore important to maintain the required safety 
standard
.












(5)


It is equally important to use the Kozloduy Nuclear Power Plant’s own resources, as this contributes to the availability of the necessary expertise
, enhances know-how
 and 
skills, and
 at the same time mitigates the social and economic impact of the early closure by continuously employing the staff from the closed nuclear power plant. The continued financial support is therefore important to maintain the required safety
, health and environmental standards
.









Amendment 6






Proposal for a regulation


Recital 6











(6)


The Union recognises also the need for financial support to progress further 
with mitigating measures in the energy sector given the extent of the capacity loss by the closure of the nuclear units and its
 impact on the security of supply 
in the region
.












(6)


The Union recognises also the need 
and the necessity
 for financial support to progress further 
towards a more energy-efficient economy which will have a positive
 impact on the security of supply
, on electricity prices and on the volume of greenhouse gas emissions in Bulgaria. As more progress is needed in Bulgaria with regard to the final disposal of irradiated fuel elements and highly radioactive waste, and as the final disposal of all radioactive substances resulting from the closure of Kozloduy nuclear plant is a highly important process which needs to be carefully planned, the Union should assist the Bulgarian Government in the process of identifying the final disposal solutions, if appropriate on the basis of a study by the Bulgarian Government relating to the safe final disposal of all radioactive substances involved in the decommissioning
.









Amendment 7






Proposal for a regulation


Recital 6 a (new)





 










(6a)






The loss of generating capacity due to the early closure of Units 1 to 4 of the Kozloduy Nuclear Power Plant has led to a significant additional volume of greenhouse gas emissions, estimated at 15 TWh for the period 2011-2013 with a CO2-equivalent of some 1,2 Gg/GWh, and has resulted in about 18 000 Gg or 18 000 kt CO2-equivalent additional effect for Bulgaria, thus necessitating additional CO2 reductions.











Amendment 8






Proposal for a regulation


Recital 6 b (new)





 










(6b)






The Union recognises the need to mitigate the effect of increased environmental damage and emissions due to the replacement capacity coming mostly from increased use of lignite plants.











Amendment 9






Proposal for a regulation


Recital 6 c (new)





 










(6c)






Mitigation measures to reduce the socio-economic impact of the closure of Units 1 to 4 of the Kozloduy Nuclear Power Plant, such as programmes for retraining affected personnel to use their skills in other sectors, for example industrial research or renewable energy, could require EU financial assistance.











Amendment 10






Proposal for a regulation


Recital 7











(7)




Consequently
, provision should be made for a sum of EUR 300 million from the general budget of the European Union to fund the decommissioning of the Kozloduy Nuclear Power Plant over the period from 2010 to 2013.












(7)




Recognising the inadequate decommissioning and radioactive waste treatment funds from operating profits
, provision should be made for a sum of EUR 300 million from the general budget of the European Union to fund the decommissioning of 
Units 1 to 4 of
 the Kozloduy Nuclear Power Plant over the period from 2010 to 2013. 
Of this sum, EUR 180 million should be used to support the decommissioning programme and the remaining EUR 120 million to fund both energy efficiency and savings measures.











Amendment 11






Proposal for a regulation


Recital 7 a (new)





 










(7a)






In view of the Commission Ex Ante Evaluation of 27 October 2009 (2), EUR 180 million of the funds is intended to assist the following projects: (1) project management, technical assistance for the support of the implementation of the decommissioning programme; (2) the provision of salaries for experts (operation, maintenance, technical support, project management) at the Kozloduy site, working for the decommissioning of Units 1-4; (3) contribution to the construction of the National Radioactive Waste Disposal Facility, crucial for the implementation of the decommissioning programme, in particular for the storage of low and intermediate level waste in the first 10 years of implementation; (4) site infrastructure and treatment of dismantled waste (including additional allocation for projects already in the tendering process). The improvement of site infrastructure referred to as part of project 4 may only comprise measures relating to the decommissioning of Units 1-4.











Amendment 12






Proposal for a regulation


Recital 8











(8)


The appropriations of the general budget of the European Union for decommissioning should not lead to distortions of competition in relation to power supply companies on the energy market in the Union. These appropriations should also be used to finance measures 
to compensate the loss of production capacity
 in line with the acquis.












(8)


The appropriations of the general budget of the European Union for decommissioning should not lead to distortions of competition in relation to power supply companies on the energy market in the Union. These appropriations should also be used to finance 
energy efficiency and savings
 measures in line with the acquis 
and the rules of the functioning of the common European energy market
.









Amendment 13






Proposal for a regulation


Recital 10











(10)


The tasks of the EBRD include managing the public funds allocated to the programmes for decommissioning nuclear power 
plants and
 monitoring the financial management of these programmes so as to optimise the use of public money. In addition, the EBRD carries out the budget tasks entrusted to it by the Commission in line with the requirements of Article 53quinquies of the Financial Regulation.












(10)


The tasks of the EBRD include managing the public funds allocated to the programmes for decommissioning 
those
 nuclear power 
units that were subject to accession-linked closure agreements. The EBRD is
 monitoring the financial management of these programmes so as to optimise the use of public money. In addition, the EBRD carries out the budget tasks entrusted to it by the Commission in line with the requirements of Article 53d of the Financial Regulation.









Amendment 14






Proposal for a regulation


Recital 11











(11)


In order to ensure the highest possible efficiency, the decommissioning of the Kozloduy Nuclear Power Plant should be carried out with recourse to the best available technical expertise, and with due regard to the nature and technological specifications of the units to be shut down.












(11)


In order to ensure the highest possible efficiency 
and to minimise possible environmental consequences
, the decommissioning of 
Units 1 to 4 of
 the Kozloduy Nuclear Power Plant should be carried out with recourse to the best available technical expertise, and with due regard to the nature and technological specifications of the units to be shut down.









Amendment 15






Proposal for a regulation


Recital 11 a (new)





 










(11a)






In order to ensure access to information, public participation and transparency, all appropriate measures should be taken during the decommissioning of the Kozloduy Nuclear Power Plant to fulfil the obligations laid down in international conventions that already provide for the necessary requirements in national, international, or trans-boundary contexts, such as the Aarhus Convention on access to information, public participation in decision-making and access to justice in environmental matters of 25 June 1998 (3).











Amendment 16






Proposal for a regulation


Recital 12











(12)


The decommissioning of the Kozloduy Nuclear Power Plant will be carried out in line with the legislation on the environment, particularly Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment.












(12)


The decommissioning of 
Units 1 to 4 of
 the Kozloduy Nuclear Power Plant will be carried out 
in accordance with Bulgaria’s national law and licensing arrangements, and
 in line with the legislation on the environment, particularly Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment.









Amendment 17






Proposal for a regulation


Recital 12 a (new)





 










(12a)






The activities related to the decommissioning of the Kozloduy Nuclear Power Plant will be carried out in line with the fundamental objective of protecting workers and the general public from the harmful effects of ionising radiation, as laid down in existing legislation, particularly Council Directive 96/29/Euratom of 13 May 1996 laying down basic safety standards for the protection of the health of workers and the general public against the dangers arising from ionizing radiation (4), thus ensuring the highest level of safety and protection for workers and the general public’s health. The mitigation measures in the energy sector through energy efficiency and renewable energy should be supported by a specific Bulgarian national strategy.











Amendment 18






Proposal for a regulation


Recital 12 b (new)





 










(12b)






Principles of economy, efficiency and effectiveness in respect of the allocated funds should be ensured through evaluation and performance audits of the previously financed programmes.











Amendment 19






Proposal for a regulation


Recital 13 a (new)





 










(13a)






Articles 53d, 108a and 165 of Council Regulation (EC,Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and Articles 35 and 43 of Commission Regulation (EC,Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC,Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (6) lay down the conditions to be considered under the joint management budget implementation method.











Amendment 20






Proposal for a regulation


Recital 13 b (new)





 










(13b)






The Kozloduy case should serve as an example, and a complete and precise budget of decommissioning should be drawn up by the Commission for analysis and forecasting of costs of the future decommissioning of nuclear power plants.











Amendment 21






Proposal for a regulation


Article 1





This Regulation establishes the programme laying down detailed rules for the implementation of Community’s financial contribution to address the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant and the consequences of their closure in Bulgaria (hereinafter referred to as ‘Kozloduy Programme’).


This Regulation establishes the programme laying down detailed rules for the implementation of the Community’s financial contribution to address 
the further process of
 the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant and the consequences
, with regard to the environment, economy and security of supply in the region,
 of their 
early
 closure in Bulgaria (hereinafter referred to as ‘Kozloduy Programme’).





Amendment 22






Proposal for a regulation


Article 2





The Community contribution to the Kozloduy Programme shall be granted for the purpose of providing financial support for measures connected with the decommissioning of the Kozloduy Nuclear Power Plant, measures for environmental upgrading in line with the acquis and for modernising 
conventional
 production capacity to replace the production capacity of the four reactors at the Kozloduy Nuclear Power Plant and other measures which stem from the decision to close and decommission 
this plant
 and which contribute to the necessary restructuring, upgrading of the environment and modernisation of the energy production, transmission and distribution sectors in Bulgaria as well as to enhancing security of supply 
and
 energy efficiency in Bulgaria.


The Community contribution to the Kozloduy Programme shall be granted for the 
primary
 purpose of providing financial support for measures connected with the decommissioning of 
Units 1 to 4 of
 the Kozloduy Nuclear Power Plant
. It shall also be directed at
 measures for environmental upgrading in line with the acquis and for modernising production capacity to replace the production capacity of the four reactors at the Kozloduy Nuclear Power Plant and other measures which stem from the decision to close and decommission 
those units
 and which contribute to the necessary restructuring, upgrading of the environment and modernisation 
and strengthening
 of the energy production, transmission and distribution sectors in Bulgaria as well as to enhancing security 
and a higher standard
 of supply, energy efficiency 
and use of renewable energy
 in Bulgaria
, while encouraging energy-saving measures and promoting renewable energies. Financial support can also be provided in order to mitigate the socio-economic transition in the affected communities, for example through developing new sustainable jobs and industries
.





Amendment 23






Proposal for a regulation


Article 3 – paragraph 1





1.   The financial reference amount necessary for the implementation of the Kozloduy programme for the period from 1 January 2010 to 31 December 2013 shall be EUR 300 million.


1.   The financial reference amount
, within the meaning of point 38 of the IIA of 17 May 2006, that is
 necessary for the implementation of the Kozloduy programme for the period from 1 January 2010 to 31 December 2013 shall be EUR 300 million.





Amendment 24






Proposal for a regulation


Article 3 – paragraph 2





2.   The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspectives.


2.   The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspectives 
and according to the requirements of the decommissioning process
.





Amendment 25






Proposal for a regulation


Article 3 – paragraph 3





3.   The amount of the appropriations allocated to the Kozloduy Programme 
may
 be reviewed in the course of the period from 1 January 2010 to 31 December 2013 to take account of the progress made with the implementation of the programme and to ensure that the programming and allocation of the resources are based on actual payment needs and absorption capacity.


3.   The amount of the appropriations allocated to the Kozloduy Programme 
shall
 be reviewed in the course of the period from 1 January 2010 to 31 December 2013 to take account of the progress made with the implementation of the programme, 
and to take account of the long-term impacts on, and consequences for, the environment, economy and security of supply as a result of the early closure of Units 1 to 4 of the Kozloduy Nuclear Power Plant,
 and to ensure that the programming and allocation of the resources are based on actual payment needs and absorption capacity.





Amendment 26






Proposal for a regulation


Article 5 – paragraph 2





2.   Measures under the Kozloduy Programme shall be adopted in accordance with Article 8(2).


2.   Measures under the Kozloduy Programme shall be adopted in accordance with Article 8(2). 
They shall comply with EU rules on public procurement.







Amendment 27






Proposal for a regulation


Article 6 – paragraph 1





1.   The Commission may have an audit of the use made of the assistance carried out either directly by its own staff or by any other qualified outside body of its choice. Such audits may be carried out throughout the duration of the agreement between the Community and the EBRD on making Community funds available to the Kozloduy International Decommissioning Support Fund and for a period of five years from the date of payment of the balance. Where appropriate, the audit findings may lead to recovery decisions by the Commission.


1.   The Commission 
shall monitor, and
 may have an audit of the use made of the assistance carried out either directly by its own staff or by any other qualified outside body of its choice. Such audits may be carried out throughout the duration of the agreement between the Community and the EBRD on making Community funds available to the Kozloduy International Decommissioning Support Fund
, in accordance with the rules of the International Atomic Energy Agency and the International Energy Agency,
 and for a period of five years from the date of payment of the balance. Where appropriate, the audit findings may lead to recovery decisions by the Commission. 
The funding of such audits and any other assessments falls outside the scope of the budget for decommissioning assistance.







Amendment 28






Proposal for a regulation


Article 6 – paragraph 2 - subparagraph 1





2.   Commission staff and outside personnel authorised by the Commission shall have appropriate right of access, particularly to the beneficiary’s offices and to all the information, including information in electronic format, needed in order to conduct such audits.


2.   Commission staff and outside personnel authorised by the Commission shall have appropriate right of access, particularly to the beneficiary’s offices and to all the information, including information in electronic format, needed in order to conduct such audits. 
The audits shall also cover the stage reached in the issuing of permits for decommissioning.







Amendment 29






Proposal for a regulation


Article 6 – paragraph 2 – subparagraph 2





The Court of Auditors shall enjoy the same rights, especially of access, as the Commission.


The Court of Auditors 
and the European Parliament
 shall enjoy the same rights, especially of access, as the Commission.





Amendment 30






Proposal for a regulation


Article 7





The Commission shall ensure the implementation of this Regulation and shall report at regular intervals to the European Parliament and the Council. It shall carry out a mid-term 
review
, as provided for in Article 3(3).


The Commission shall ensure the implementation of this Regulation and shall report at regular intervals to the European Parliament and the Council 
on the use of funds and the activities carried out
. It shall carry out a mid-term 
evaluation and an ex-post evaluation
, as provided for in Article 3(3) 
and report on them both to the European Parliament
.




 




The ex-post evaluation shall contain a complete and precise budget of the costs for decommissioning a nuclear power plant so as to plan for future decommissioning expenditure. It shall also analyse the economic, social and environmental costs, focusing on the impact of residual free-radiation and consequences for security of supply.







Amendment 31






Proposal for a regulation


Article 7 a (new)





 



Article 7a



The Commission shall perform a compliance assessment, in line with the internationally accepted standards of, at least, the EBRD accounting, audit, internal control and procurement procedures, before the signing of the contribution agreement.








(1)  OJ C 139, 14.6.2006, p. 1.

(2)  
SEC (2009) 1431.



(3)  

OJ L 124, 17.5.2005, p. 1.



(4)  

OJ L 159, 29.6.1996, p. 1.



(5)  

OJ L 248, 16.9.2002, p. 1.



(6)  

OJ L 357, 31.12.2002, p. 1.