RECOMMENDATION FOR SECOND READING on the Council common position for adopting a decision of the European Parliament and of the Council laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC

22.3.2006 - (10720/1/2005 – C6‑0016/2006 – 2003/0297(COD)) - ***II

Committee on Industry, Research and Energy
Rapporteur: Anne Laperrouze

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the Council common position for adopting a decision of the European Parliament and of the Council laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC

(10720/1/2005 – C6‑0016/2006 – 2003/0297(COD))

(Codecision procedure: second reading)

The European Parliament,

–   having regard to the Council common position (10720/1/2005 – C6‑0016/2006),

–   having regard to its position at first reading[1] on the Commission proposal to Parliament and the Council (COM(2003)0742)[2],

–   having regard to the amended Commission proposal (COM(2005)0716[3],

–   having regard to Article 251(2) of the EC Treaty,

–   having regard to Rule 62 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on Industry, Research and Energy (A6‑0071/2006),

1.  Approves the common position as amended;

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

Council common position	Amendments by Parliament
Amendment 1 Recital 8
(8) Among the projects relating to trans-European energy networks, it is necessary to highlight the priority projects, which are very important for the operation of the internal energy market or the security of energy supply.	(8) Among the projects relating to trans-European energy networks, it is necessary to highlight the priority projects, which are very important for the operation of the internal energy market or the security of energy supply. In addition, a Declaration of European Interest needs to be established for those projects receiving the highest priority, as well as enhanced coordination, where appropriate.
Amendment 2 Recital 8 a (new)
	(8a) For the purpose of gathering of information required under this Decision, the Commission and the Member States should, as far as possible, use information on projects of European interest which is already available, in order to avoid duplication of efforts. For example, such information may already be available in the context of Regulation(EC) No 2236/95, in the context of other Community legislation which can provide cofinancing to TEN-projects and the decisions approving individual projects under those legislative instruments, and in the context of Directives 2003/54/EC and 2003/55/EC concerning common rules for the internal market for electricity and gas.
Amendment 3 Recital 10
(10) Priority for funding under Regulation (EC) No 2236/95 should be given to projects of European interest, i.e. projects of common interest referred to in this Decision and included in the axes for priority projects set out in this Decision.	(10) Appropriate priority for funding under Regulation (EC) No 2236/95 should be given to projects declared to be of European interest. Member States, when submitting projects under other Community financial instruments, should give particular attention to projects declared to be of European interest
Justification
Part of the text can be found in the deleted recital 11..
Amendment 4 Recital 10 a (new)
	(10a) For most projects declared to be of European interest, a significant current or prospective delay could be a delay expected to last between one and two years.
Amendment 5 Recital 11
(11) Member States, when submitting projects under the relevant Community financial instruments, should give appropriate priority to projects covered by Annex I that meet the criteria of this Decision.	deleted
Amendment 6 Recital 13
(13) Where appropriate for certain priority projects, or sections of priority projects, or groups of priority projects in order to improve their preparation and implementation for the duration of the priority projects concerned, the Commission, in consultation with the Member States involved, should ensure and coordinate cooperation with users and operators, with a view to ensuring that the necessary monitoring is carried out in order to keep the Community informed of progress. In so doing, the Commission should consult, together with the Member States concerned, operators, users, regional and local authorities and representatives of civil society with a view to gaining fuller knowledge of demand for transmission services, of the constraints and of the service parameters required to optimise the use of the infrastructure concerned.	(13) When projects of European interest, or sections of projects of European interest, or groups of projects of European interest encounter implementation difficulties, a European coordinator can act as a facilitator by encouraging cooperation between all parties concerned, and by ensuring that adequate monitoring is carried out in order to keep the Community informed of progress. The services of a European coordinator should also be made available to other projects, at the request of the Member States concerned.
Amendment 7 Recital 17
(17) The identification of projects of common interest, their specifications and priority projects should be without prejudice to the results of the environmental impact assessment of the projects and of the plans or programmes.	(17) The identification of projects of common interest, their specifications and priority projects, in particular those of European interest, should be without prejudice to the results of the environmental impact assessment of the projects and of the plans or programmes.
Amendment 8 Recital 19 a (new)
	(19a). Information which must be exchanged or provided to the Commission under the provisions of this Decision is likely to be held, to a large extent, by companies. Therefore, Member States may have to cooperate with these companies in order to obtain this information.
Amendment 9 Article 1, paragraph 1
This Decision defines the nature and scope of Community action to establish guidelines for trans European energy networks. It establishes a series of guidelines covering the objectives, priorities and broad lines of action by the Community in respect of trans European energy networks. These guidelines identify projects of common interest, including those which have priority, among trans European electricity and gas networks.	This Decision defines the nature and scope of Community action to establish guidelines for trans European energy networks. It establishes a series of guidelines covering the objectives, priorities and broad lines of action by the Community in respect of trans-European energy networks. These guidelines identify projects of common interest and priority projects, including those of European interest, among trans-European electricity and gas networks.
Amendment 10 Article 5, point (a)
(a) the identification of projects of common interest referred to in Article 6;	(a) the identification of projects of common interest and priority projects, including those of European interest;
Amendment 11 Article 6, paragraph 5
5. Member States shall take any measures they consider necessary to facilitate and speed up the completion of projects of common interest and to minimise delays while complying with Community law and international conventions on the environment. In particular, the necessary authorisation procedures shall be completed rapidly.	5. Member States shall take any measures they consider necessary to facilitate and speed up the completion of projects of common interest and to minimise delays while complying with Community law and international conventions on the environment, especially as regards projects declared to be of European interest. In particular, the necessary authorisation procedures shall be completed rapidly.
Amendment 12 Article 7 a (new)
	Article 7a
	1. A selection of projects on the priority axes referred to in Article 7 which are of cross-border nature or which have significant impact on cross-border transmission capacity are declared to be of European Interest. Those projects are set out in Annex I.
	2. When projects are selected under the budget for the trans-European networks, in accordance with Article 10 of Council Regulation (EC) No 2236/952, appropriate priority shall be given to projects declared to be of European interest.
	3. When projects are selected under other Community cofinancing funds, particular attention shall be given to projects declared to be of European interest
	4. If there is a significant current or prospective delay in the progress of a project declared to be of European interest, the Commission may ask the Member States concerned to ensure that reasons for the delay are provided within three months. For projects declared to be of European interest for which a European coordinator has been appointed, the European coordinator shall include in his report the reasons for the delay.
	5. Five years after the completion of a project declared to be of European interest or of one of the sections thereof, the Commission, assisted by the Committee referred to in Article 11, shall carry out an assessment of that project which includes its socio-economic impact, impact on the environment, impact on trade between Member States and on territorial cohesion and sustainable development. The Commission shall inform the Committee referred to in Article 11 of the result of this assessment.
	6. For each project declared to be of European interest, and in particular for cross-border sections, the Member States concerned shall take appropriate steps to ensure that: - a regular exchange of relevant information takes place; and - joint coordination meetings are organised as appropriate.
	The joint coordination meetings shall be organised as required in the light of the particular requirements of the project, such as the project development phase,and the difficulties anticipated or encountered. The joint coordination meetings shall address in particular the evaluation and the public consultation procedures. The Member States concerned shall ensure that the Commission is informed of the joint coordination meetings and of the exchange of information.
Amendment 13 Article 7 b (new)
	Article 7b
	1. Projects of European Interest should be rapidly implemented. No later than 6 months after the entry into force of this Decision, Member States shall, using as a basis a draft timetable provided to that effect by the Commission, submit to the Commission an updated and indicative timetable for the completion of those projects including, as far as available, details of: (a) the envisaged passage of the project through the planning approval process, (b) the timetable for the feasibility and design phase, (c) the construction of the project, (d) the entry into service of the project.
	2. The Commission, in close collaboration with the committee referred to in Article 11, shall present a report every two years on the progress of projects referred to in paragraph 1. For projects declared to be of European interest for which a European coordinator has been appointed, the annual reports presented by the European coordinator shall replace those biennial reports.
Amendment 14 Article 7 c (new)
	Article 7c
	1. When a project declared to be of European interest encounters significant delays or implementation difficulties, including situations where third countries are involved, the Commission may designate, in agreement with the Member States concerned, and after having consulted the European Parliament, a European coordinator. When necessary, Member States may also request that the Commission designate a European coordinator for other TEN-projects.
	2. The European Coordinator shall be chosen, in particular, on the basis of his experience of European institutions and knowledge of issues relating to energy policy as well as the financing and socio-economic and environmental evaluation of major projects.
	3. The decision designating the European coordinator shall specify how the coordinator is to perform his tasks.
	4. The European Coordinator shall: (a) promote the European dimension of the project and the cross-border dialogue between project promoters and the people concerned, (b) contribute to the coordination of the national procedures for consulting the people concerned, and (c) submit a report to the Commission every year on the progress of the project(s) for which he has been designated and on any difficulties and obstacles which are likely to result in a significant delay; the Commission will transmit this report to the Member States concerned;
	5. The Member States concerned shall cooperate with the European Coordinator in his execution of the tasks referred to in paragraph 4.
	6. The Commission may request the opinion of the European Coordinator when examining applications for Community funding for projects or groups of projects for which he has been designated.
	7. In order to avoid unnecessary administrative burden, the level of co-ordination must be proportionate to the costs of the project.
Amendment 15 Article 8, paragraph 1, point (b)
(b) facilitating implementation of the authorization procedures for projects on trans European energy networks in order to reduce delays;	(b) facilitating implementation of the authorization procedures for projects on trans-European energy networks in order to reduce delays, especially as regards projects of European interest;
Amendment 16 Annex I, title
TRANS-EUROPEAN ENERGY NETWORKS Axes for Priority projects as defined in Article 7 Priority projects included on each axis are listed	TRANS-EUROPEAN ENERGY NETWORKS Priority project axes, including sites of projects of European interest, as defined in Articles 7 and 7a.   The priority projects, including projects of European interest, to be carried out on each priority axis, are listed below.
Amendment 17 Annex I
Priority projects include:	Including the following projects of European interest: (This amendment applies to the whole of Annex I; its adoption will require corresponding changes throughout the Annex)

• [1]  Texts adopted of 7 June 2005, P6_TA(2005)0211
• [2]  Not yet published in OJ.
• [3]  Not yet published in OJ.

EXPLANATORY STATEMENT

It is worth recapitulating the objectives of this proposal for a decision. The aim is to adapt the guidelines to the new shape of a European Union of 25 Member States, allow funding to be earmarked for projects of common interest, enable the internal market in gas and electricity to be completed, and, above all, to guarantee security of supply by means of interconnections between Member States and with neighbouring countries (south-east Europe, Mediterranean countries, Ukraine, Belarus). This approach to trans-European energy networks mirrors the approach followed for trans-European land transport networks.

At first reading, there was majority support in Parliament for the new concepts introduced by the Commission for defining action priorities, in particular the description of projects of European interest located on the priority axes and the appointment of a European coordinator, provided the latter's role is limited to complex projects which are particularly difficult to implement and is performed in cooperation with the Member States.

The legislative resolution adopted by Parliament urged the Member States to work together when necessary to carry out trans-national inquiry procedures, taking into account crucial criteria such as security of supply, the environmental impact of the projects, the views of local populations, etc.

Parliament took into account the changes the Council planned to introduce at first reading. Accordingly, it did not seek to call into question the projects selected by the Member States, feeling that it was neither sufficiently competent nor well informed to criticise the choice of projects. Nevertheless, in response to remarks made by a number of members, your rapporteur called on the Commission to make sure that the projects concerned were valid ones when implementing this decision. In the interests of clarity, Parliament also sought to reorganise the annexes. The resolution therefore established an order or priority for the projects with the projects of common interest representing the basis of the trans-European projects listed in Annex III and the priority projects described as projects of European interested listed in Annex I.

In the common position forwarded to Parliament in mid-January, the Council adopted a different approach, simply abolishing the European coordinator and the declaration of European interest and the obligations deriving there from. The Council is accepting only the minor changes made to the Commission's proposal by Parliament's resolution.

The Council wants a trans-European network but clearly sees it only as a juxtaposition of national networks and national policies.

In the light of the recent crisis involving Ukraine and Russia and the declarations made at Hampton Court, there is a clear need for a European energy policy. This decision therefore represents an opportunity for the European Institutions to display their willingness to develop one.

Your rapporteur believes that the new provisions introducing the declaration of European interest and the possibility of appointing a coordinator are vital tools for ensuring a genuine market in gas and electricity and guaranteeing security of supply.

This European network can only be achieved by improving and increasing interconnections.

Your rapporteur therefore suggests that either the amendments tabled at first reading or the initial text of the Commission proposal should be reinstated so as to reintroduce these tools and provide the Union with the resources necessary to attain the goals it has set itself.

PROCEDURE

Title	Guidelines for trans-European energy networks
References	10720/1/2005 - C6-0016/2006 - 2003/0297(COD)
Date of Parliament’s first reading – P number	7.6.2005	P6_TA(2005)0211
Commission proposal	COM(2003)0742 - C5-0064/2004
Amended Commission proposal
Date receipt of common position announced in plenary	19.1.2006
Committee responsible   Date announced in plenary	ITRE 19.1.2006
Rapporteur(s)   Date appointed	Anne Laperrouze 19.1.2006
Previous rapporteur(s)
Discussed in committee	24.1.2006		20.2.2006		21.3.2006
Date adopted	21.3.2006
Result of final vote	+ - 0	31 3 0
Members present for the final vote	Šarūnas Birutis, Philippe Busquin, Jerzy Buzek, Joan Calabuig Rull, Pilar del Castillo Vera, Jorgo Chatzimarkakis, Giles Chichester, Den Dover, Norbert Glante, Fiona Hall, David Hammerstein Mintz, Rebecca Harms, Erna Hennicot-Schoepges, Ján Hudacký, Romana Jordan Cizelj, Werner Langen, Anne Laperrouze, Eluned Morgan, Reino Paasilinna, Miloslav Ransdorf, Herbert Reul, Teresa Riera Madurell, Mechtild Rothe, Paul Rübig, Andres Tarand, Britta Thomsen, Catherine Trautmann, Claude Turmes, Nikolaos Vakalis, Alejo Vidal-Quadras Roca
Substitute(s) present for the final vote	María del Pilar Ayuso González, Etelka Barsi-Pataky, Dorette Corbey, Esko Seppänen
Substitute(s) under Rule 178(2) present for the final vote
Date tabled	22.3.2006
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