CELEX: 51992PC0145
Language: en
Date: 1992-04-27
Title: Proposal for a COUNCIL DIRECTIVE providing for appropriate measures to be taken in the event of difficulties in the supply of crude oil and petroleum products to the Community

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM(92) 145 final
                                          Brussels, 27 April 1992
                          Proposal for a
                        COUNCIL DIRECTIVE
        providing for appropriate measures to be taken
                  in the event of difficulties
                   In the supply of crude oil
            and petroleum products to the Community
                 (presented by the Commission)
 ---pagebreak---                                    - 2
                             EXPLANATORY MEMORANDUM
Introduct ion
1. The purpose of this communication is:
      to give a reminder of the content of the Commission's original
      proposals concerning measures to be taken to alleviate or to
      avoid oil supply difficulties (C0M(90) 514 final);
      to present the guidelines requested     by  the Energy  Council  on
      31 May and 29 October 1991;
      to update the Commission's proposals in this connection in the
       light of Community accession to the International Energy Agency
      (IEA), which    is the subject of a recommendation (SEC (92)
      697 final).
1. Content of the proposals in C0M(90) 514 final
2. The proposals in C0M(90) 514 final were adopted by the Commission on
   24 October 1990 and presented to the Council on 29 October 1990 in
   the context of the Gulf crisis. The proposals were aimed at
   adjusting the oil crisis mechanisms, and in particular the Community
   legislation on oil stocks, in order:
   -  to bring about the necessary adjustments in the light of the
       internal market, which calls for a truly Community mechanism;
   -  to ensure consistency between     the mechanisms  of  the  IEA  and
      those of the Community;
   -  to increase the effectiveness of the crisis mechanisms, and in
      particular the oil stocks.
3. Under its original proposal concerning measures in the event of
   supply difficulties, the Commission, assisted by a committee
   composed of representatives of the Member States, would:
   -  establish the existence of a crisis, taking into account analyses
      made by the IEA and the commitments of the Community and its
      Member States vis-a-vis the IEA;
   -  establish the objectives to be attained by the Member States;
   -  determine the measures to be implemented by the Member States.
 ---pagebreak---                                        - 3
4. Under the Commission's original proposal concerning oil stocks:
          the Member States would set up national oil stockholding agencies
          to maintain oil stocks representing at least 60 days' domestic
         consumption     out     of     the     90 days    provided     for in
         Direct ive 68/414/EEC;
     -    in the event of supply difficulties, the Commission, assisted by
         a committee composed of representatives of the Member States,
         could decide to authorize withdrawals from stocks not exceeding
         30 days.
 II.     Guidelines adopted by the Council
5. At the Energy Council meeting on 31 May 1991, the Presidency noted
     that there was broad agreement on the need for Community procedures
     for dealing with oil supply crises and that it was necessary to
    update the existing measures. However, several Member States wanted
     the Commission to re-examine its proposals, in particular as regards
     relations between the IEA, the Community and the Member States.
6. Work resumed on the basis of an approach based on complementarity
    between      the   Community    and     the    IEA. At    its   meeting on
    29 October 1991 the Energy Council reached a consensus on the broad
     lines of a new oil crisis mechanism.
     In the light of Community accession to the IEA, the Energy Council
    agreed that in the event of supply difficulties the Community should
    act in accordance with the principle of complementarity vis-a-vis
    the IEA:
         Decisions establishing a crisis situation and setting objectives
       • would be adopted in the IEA framework. The Community would
         present a Community position and the Member States would speak in
         support of that position.
    -    The Member States would decide on the measures they intend to
         take to apply IEA decisions. The Commission would coordinate the
         measures to increase their effectiveness and ensure their
         compatibility with the Treaty.
    -     In very exceptional circumstances the Community would be able to
         decide independently on matters concerning crisis measures.
III.     Updating the Commission proposals
7. In accordance with the consensus reached at the Energy Council
    meeting of 29 October 1991, which the Commission supported, the
    Commission has altered its proposal for a Directive on the steps to
    be taken in the event of a crisis in accordance with point 6 above,
    and at the same time has altered its proposal concerning negotiating
    directives for Community accession to the IEA.
 ---pagebreak---                                  - 4 -
8. Under the new proposal, the Member States would finalize a Community
   position vis-a-vis the IEA. The position would be adopted by the
   Council by a qualified majority and presented by the Commission. To
   coordinate the measures planned by the Member States, the Commission
   would be assisted by a committee of the type II b (management
   committee) of the Committee Procedure Decision.
IV.   Cone Ius i ons
9. The Commission requests the Council to adopt the proposal for a
   Directive attached to this communication establishing a Community
   decision-making procedure complementary to that of the IEA in the
   event of oil supply difficulties.
 ---pagebreak---                                           - 5 -
                        Proposal for a Council Directive
                providing for appropriate measures to be taken
                            in the event of difficulties
                             in the supply of crude oil
                   and petroleum products to the Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having    regard    to    the    Treaty    establishing   the    European    Economic
Community, and in particular Article 103(2) thereof;
Having regard to the proposal from the Commission;1
Having regard to the opinion of the European Parliament;2
Having regard to the opinion of the Economic and Social Committee;**
Whereas    imported   crude oil      and petroleum products play       an   important
role in the Community's energy supplies;             whereas any difficulty, even
temporary, which has the effect of significantly reducing supplies of
such   products, or     which      is  likely   to  do  so, could     cause   serious
disturbances     in the economic       activity of    the Community; whereas      the
Community must, therefore, be in a position to offset or at                  least to
mitigate any harmful effects in such a case;
Whereas the Community must ensure that provisions are in place to meet
international commitments arising from            its accession to the Agreement
on an    International    Energy Programme and to the          International   Energy
Agency,    hereinafter     referred     to   as  "the   IEA",   aimed   at   ensuring
solidarity between all countries participating in the IEA; whereas the
IEA   will   decide    on    the   objectives    necessary    to  meet   oil   supply
di ff icu11 ies;
1   OJ No L
2   OJ No L
3   OJ No L
 ---pagebreak---                                           - 6 -
Whereas    appropriate      procedures    and    instruments   should   therefore   be
established      on   the    one   hand    to   ensure   that   the   Community    can
effectively participate          in the decision-making process        in the Agency
and   on   the other      to ensure     the   speedy   implementation    of   measures
adopted by the Agency to mitigate the effects of difficulties                   in the
supply    of   crude   oil    and  petroleum     products; whereas     the   competent
authorities of the Member States should therefore possess the necessary
powers to take appropriate action without delay and in accordance with
the Treaty;
Whereas it therefore seems appropriate to replace the provisions laid
down in this connection by Council Directive 73/238/EEC4 by provisions
 in keeping with the international commitments of the Community                and the
 unity of the single market as provided for in Article 8a of the Treaty;
 Whereas Council Decision 77/706/EEC5 provides a framework                  for action
 by the Community to reduce primary energy consumption in the event of
 difficulties in the supply of crude oil and petroleum products; whereas
 such   action    will   in future     be organized      in the   framework    of  this
 Directive;
 Whereas    the commitments of        the Community     towards   the   IEA   will  not
 prevent it from taking independent action unilaterally in the event of
 exceptionally serious supply difficulties;
 Whereas      Council      Decision 77/186/EEC,6        as    amended     by    Council
                           7
 Decision 79/879/EEC,          provides for     the possibility,    in the event of
 difficulties      in the    supply of     crude oil    or  petroleum    products, of
  introducing, in intra-Community trade, a system of export licences for
 crude oil and petroleum products and, where appropriate, quantitative
 restrictions on exports; whereas in the context of a unified                  internal
 market Community       legislation should no longer be a source of barriers
 to trade,      but on the contrary should ensure that the measures to be
 taken
 4   OJ  No  L  228. 16.8.1973, p. 1.
 5   OJ  No  L  292, 16.11.1977, p. 9.
 6   OJ  No  L  61, 5.3.1977, p. 23.
 7   OJ  No  L  270, 27.10.1979, p. 58
 ---pagebreak---                                           7 -
are coordinated    at Community      level   while   taking   account   of  specific
 local factors, the Communities being responsible for the application on
Community   territory   of   all   measures    arising    from   its  international
commitments;
Whereas, for reasons of clarity, Directive 73/238/EEC should be recast
 in view of the significant amendments to be made to it;
Whereas this Directive     is without prejudice to the time limits within
which Member States have to comply with Directive 73/238/EEC,
HAS ADOPTED THIS DIRECTIVE
                                     Article 1
1. Member States    shall   take    all   necessary    measures    to  provide   the
    competent  authorities with       the necessary     powers,   in the event of
    difficulties   arising    in   the   supply   of   crude   oil   and   petroleum
    products which have the effect of significantly reducing supplies of
    such goods, or which are       likely to do so, and are liable to cause
    severe  disruption,    to    take   the   necessary    measures    required   by
    Community   provisions    and    the    international     commitments    of  the
    Community  in the   framework     of   the Agreement     on an    International
    Energy Programme and the International Energy Agency:
    -  to draw on the oil stocks,
       to impose specific or broad restrictions on consumption.
       to implement other appropriate measures
2. Member States    shall   designate     the   bodies   to   be  responsible    for
    implementing the measures to be taken under the powers provided for
    in paragraph 1.   They shall inform the Commission of the composition
    and terms of reference of those bodies.
 ---pagebreak---                                             - 8 -
3. Member States      shall   draw up action         plans   for use     in the event      of
   difficulties      in  the   supply     of    crude   oil   and  petroleum       products.
   They shall    inform the Commission           thereof.
                                         Art icle 2
1. Without    prejudice     to  the provisions        of   paragraph    2,    the   measures
   referred     to   in    Article     1    shall    be   implemented      following      the
   establishment by the International Energy Agency of the existence of
   difficulties     in the supply of crude oil            and petroleum products and
   the setting by the Agency of objectives to meet                  this situation.        To
   this end, the Community          position      in the Agency shall be         determined
    in accordance with the provisions of paragraph 3.
2. The   provisions     of   paragraph      1 shall     not   prevent    decisions      being
   taken,    where   appropriate,        in   the   event   of   exceptionally       serious
   supply    difficulties,      to   apply      independent    measures     in   accordance
   with Article 103 of the Treaty.
3. For   the    implementation       of    the    provisions    of    paragraph      1,   the
   Council, acting on a Commission proposal, shall                  adopt     in good    time
   and by a qualified majority            the Community      position    to be presented
   by the Commission in the Agency.
   The same procedure shall be applied, as and when necessary, to adapt
   the Community      position     in the course of work within            the bodies of
   the IEA, as well as for deciding on the lifting of measures.
4. The    decisions     referred      to     in   paragraphs     1   and    2    and    their
   implications with regard to the Member States shall be                      communicated
   to   their   competent     authorities        by  the   Commission     without     delay.
   The Member States shall decide on the measures which they                      intend to
   take, taking into account their specific situation, and shall notify
   them to the Commission within ten days of the communication of the
   abovementioned decisions.
 ---pagebreak---                                           - 9
   After   the    Commission      has    examined     whether    the  measures    under
   consideration      are   compatible      with   Community    law, a    list of    the
   measures    to   be   taken    shall    be   adopted    within   ten  days   of   the
   abovementioned communication, in accordance with the procedure set
   out   in Article     3, on    the basis of       the measures notified       by   the
   Member States and coordinated to ensure their mutual compatibility
   and  their maximum effectiveness.             This   list shall be published       in
   the Official Journal of the European Communities.
                                      Article 3
1. The Commission      shall    be assisted      by a committee composed        of  the
   representatives       of    the    Member      States     and   chaired    by    the
   representative of       the Commission, to be known as the Oil                Supply
   Committee, hereinafter referred to as "the committee".
2. The representative of the Commission shall submit to the committee a
   draft of the measures to be taken.             The committee shall deliver its
   opinion on the draft within a time limit which the Chairman shall
   lay down according to the urgency of the matter.                The opinion shall
   be delivered by the majority provided for               in Article 148(2) of the
   Treaty   in the case of decisions which             the Council     is required to
   adopt   on   a    proposal     from     the   Commission.     The   votes   of   the
   representatives of the Member States within the committee shall be
   weighted in the manner set out in that article.                The Chairman shall
   not vote.
3. The Commission shall adopt measures which shall apply                  immediately.
   However, if these measures are not in accordance with the opinion of
   the committee, they shall be communicated by the Commission to the
   Council    forthwith.      In   that    event,    the    Commission   shall    defer
   application of the measures which it has decided for a period which
   shall not exceed 3 months, and which must be compatible with the
   procedures    of    the   Agency     if   the   measures    are   taken   following
   decisions by the latter.
4. The Council, acting by a qualified majority, may take a different
   decision within the time limit referred to in paragraph 3.
 ---pagebreak---                                     - 10 -
                                  Art icle 4
Directive 73/238/EEC shall be replaced by this Directive on the date
indicated  in Article 5.    Decision 77/706/EEC shall be repealed on the
same date.
Decision 77/186/EEC as amended by Decision 79/879/EEC shall be repealed
following the notification of this Directive to the Member States.
References made to Directive 73/238/EEC shall be understood as being
made to this Directive and should be read in accordance with the table
of equivalence annexed hereto.
                                  Article 5
Member  States   shall   bring   into   force   the   laws,   regulations  and
administrative provisions necessary       to comply with    this Directive on
the date on which the Agreement on the International Energy Programme
enters into force with regard to the Community.         They shall   forthwith
inform the Commission thereof.
Until such provisions have been adopted, Member States shall continue
to fulfil their obligations pursuant to Directive 73/238/EEC.
When  Member  States   adopt   these   provisions,   they   should  contain  a
reference to this Directive or be accompanied by such a reference on
the occasion of their official publication.       The methods of making such
a reference shall be laid down by the Member States.
                                  Art icle 6
This Directive is addressed to the Member States.
Done at Brussels,                      For the Council
 ---pagebreak---                                     - 11 -
                                  A N N E X
                            Table of é q u i v a l e n c e
          Directive 73/238/EEC                       This Directive
A r t i c l e s 1, 2 and 4                           Article 1
Article 3                                            Articles 2 and 3
Art icle 5                                           Art icle 5
Art icle 6                                           Art icle 6
 ---pagebreak---  ---pagebreak---                                            ~</4 -
                                                                     ISSN 0254-1475
                                                              COM (92) 145 final
                                                      DOCUMENTS
EN                                                                              12
                                 Catalogue number: CB-CO-92-162-EN-C
                                                             ISBN 92-77-43047-8
Office for Official Publications of the European Communities
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