REPORT on the proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants (COM(98)0415 - C4-0591/98 - 98/0225(SYN))

18 March 1999

Committee on the Environment, Public Health and Consumer Protection
Rapporteur: Ria G.H.C. Oomen-Ruijten

By letter of 28 October 1998 the Council consulted Parliament, pursuant to Article 189c of the EC Treaty and Article 130s(1) of the EC Treaty, on the proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants.

At the sitting of 4 November 1998 the President of Parliament announced that he had referred this proposal to the Committee on the Environment, Public Health and Consumer Protection as the committee responsible and the Committee on Research, Technological Development and Energy for its opinion.

At its meeting of 21 July 1998 the Committee on the Environment, Public Health and Consumer Protection had appointed Mrs Oomen-Ruijten rapporteur.

The Committee on the Environment, Public Health and Consumer Protection considered the Commission proposal and the draft report at its meetings of 1 February and 17 March 1999.

At the latter it adopted the draft legislative resolution by 26 votes to 3, with 1 abstention.

The following took part in the vote: Collins, chairman; Lannoye, vice-chairman; Oomen-Ruijten, rapporteur; d'Aboville, Blokland, Bowe, Cabrol, Campos, Damiao (for Kokkola), Eisma, Estevan Bolea (for Bébéar), Flemming, Graenitz, Hulthén, Jackson, Jensen K., Kestelijn-Sierens (for Olsson), Kuhn, Marinucci, McKenna, Myller (for Lienemann), Needle, Pollack, van Putten, Roth-Behrendt, Schleicher, Tamino, Valverde López, Virgin, and White.

The opinion of the Committee on Research, Technological Development and Energy is attached.

The report was tabled on 18 March 1999.

The deadline for tabling amendments will be indicated in the draft agenda for the relevant partsession.

A LEGISLATIVE PROPOSAL - DRAFT LEGISLATIVE RESOLUTION

Proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants (COM(98)0415 - C4-0591/98 - 98/0225(SYN))

The proposal is approved with the following amendments:

Text proposed by the Commission[1]

Amendments by Parliament

(Amendment 1)

Recital 3 (COM(98)0415)

Whereas the Commission has recently published a Communication on a Community Strategy to combat acidification36; whereas the revision of Directive 88/609/EEC was identified as being an integral component of that strategy;

Whereas the Commission has recently published a Communication on a Community Strategy to combat acidification36; whereas the revision of Directive 88/609/EEC was identified as being an integral component of that strategy with the long-term aim of reducing emissions of SO2 and NOx sufficiently enough to bring depositions and concentrations down to levels below the critical loads and levels;

36COM(97)88 final.

36COM(97)88 final.

(Amendment 2)

Recital 4a (new)

(4a) Whereas limit values for sulphur emissions and content are laid down in Annex V to the 1994 Oslo Protocol to the 1979 Geneva Convention on Long-Range Transboundary Air Pollution;

(Amendment 3)

Recital 14a (new)

(14a) Whereas the Commission is requested to put forward, before the end of 2000, specific proposals for EU-wide economic instruments, targeted for reducing emissions of SO2 and NOx in the most cost-effective way; any taxes or charges proposed will be minimum requirements leaving the Member States the full freedom to set higher taxes or charges, if they so wish;

(Amendment 4)

Article 1(1)(c) (COM(98)0415)

(c) Point 7 is amended as follows:

(c) Point 7 is amended as follows:

(i) The following indents are added to the third paragraph:

"- any technical apparatus used in the propulsion of a vehicle, ship or aircraft,

- gas turbines used on offshore platform."

(ii) In the fourth paragraph, the words "or by gas turbines, irrespective of the fuel used" are deleted.

(i) In the fourth paragraph, the words "or by gas turbines, irrespective of the fuel used" are deleted.

(Amendment 5)

Article 1.3 (COM(98)0415)

(refers to Article 4.2 in Directive 88/609/EEC)

In Article 4, paragraph 2 is deleted.

Before 1 July 2007, and in the light of the state of technology and environmental requirements, the Commission shall submit proposals for the revision of the limit values applicable.

(Amendment 6)

Article 5.3 (Directive 88/609/EEC)

Until 31 December 1999, the Kingdom of Spain may authorise new power plants with a rated thermal input equal to or greater than 500 MW burning indigenous or imported solid fuels, commissioned before the end of 2005 and complying with the following requirements:

Deleted

- in the case of imported solid fuels, a sulphur dioxide emission limit value of 800 mg/Nm3,

- in the case of indigenous solid fuels, at least a 60% rate of desulphurisation,

provided that the total authorised capacity of such plants to which this derogation applies does not exceed:

- 2000 MWe in the case of plants burning indigenous solid fuels,

- in the case of plants burning imported solid fuels either 7500 MWe or 50% of all the new capacity of all plants burning solid fuels authorised up to 31 December 1999, whichever is the lower.

(Amendment 7)

ANNEX, point 1 (COM(98)0415)

EMISSION LIMIT VALUES FOR SO2 FOR NEW PLANTS

Solid fuels

(refers to Annex III in Directive 88/609/EEC)

The following Annex shall be added to Annex III:

"SO2 emission limit values expressed in mg/Nm3 (O2 content 6%) to be applied by new plants for which the licence is granted on or after 1 January 2000

Type of fuel

50 to 100 MWth

100 to 300 MWth

> 300 MWth

Biomass

200

200

200

General case

850

850 to 200 (linear decrease)

200

The following Annex shall be added to Annex III:

"SO2 emission limit values expressed in mg/Nm3 (O2 content 6%) to be applied by new plants for which the licence is granted on or after 1 January 2000

Type of fuel

50 to 100 MWth

100 to 300 MWth

> 300 MWth

Biomass

200

150

100

General case

200

200

200

(Amendment 8)

ANNEX III a (new) (Directive 88/609/EEC)

EMISSION LIMIT VALUES FOR SO2 FOR NEW PLANTS

Solid fuels

The following Annex shall be added to Annex III:

"SO2 emission limit values expressed in mg/Nm3 (O2 content 6%) to be applied by 1 January 2005 by all plants for which a licence was granted before 1 January 2000

50 to 100 MWth

100 to 300 MWth

> 300 MWth

900

900 to 300 (linear decrease)

300

(Amendment 9)

ANNEX, point 2 (COM(98)0415)

EMISSION LIMIT VALUES FOR SO2 FOR NEW PLANTS

Liquid fuels

(refers to Annex IV in Directive 88/609/EEC)

The following shall be added to Annex IV:

"SO2 emission limit values expressed in mg/Nm3 (O2 content 3%) to be applied by new plants for which the licence is granted on or after 1 January 2000

50 to 100 MWth

100 to 300 MWth

> 300 MWth

850

850 to 200(linear decrease)

200

The following shall be added to Annex IV:

"SO2 emission limit values expressed in mg/Nm3 (O2 content 3%) to be applied by new plants for which the licence is granted on or after 1 January 2000

50 to 100 MWth

100 to 300 MWth

> 300 MWth

200

200

200

(Amendment 10)

ANNEX IV a (new) (Directive 88/609/EEC)

EMISSION LIMIT VALUES FOR SO2 FOR NEW PLANTS

Liquid fuels

The following Annex shall be added to Annex IV:

"SO2 emission limit values expressed in mg/Nm3 (O2 content 6%) to be applied by 1 January 2005 by all plants for which a licence was granted before 1 January 2000

50 to 100 MWth

100 to 500 MWth

> 500 MWth

900

900 to 300 (linear decrease)

300

(Amendment 11)

ANNEX, point 3 (COM(98)0415)

EMISSION LIMIT VALUES FOR SO2 FOR NEW PLANTS

Gaseous fuel

(refers to Annex V in Directive 88/609/EEC)

The following shall be added to Annex V:

"SO2 emission values expressed in mg/Nm3 (O2 content 3%) to be applied by new plants for which the licence is granted on or after 1 January 2000

Gaseous fuels in general

35

Liquefied gas

5

Low calorific gases from coke oven

400

Low caloric gases from blast furnace

200

The following shall be added to Annex V:

"SO2 emission values expressed in mg/Nm3 (O2 content 3%) to be applied by new plants for which the licence is granted on or after 1 January 2000

Gaseous fuels in general

10

Liquefied gas

5

Low calorific gases from coke oven

400

Low caloric gases from blast furnace

200

(Amendment 12)

ANNEX V a (new) (Directive 88/609/EEC)

EMISSION LIMIT VALUES FOR SO2 FOR NEW PLANTS

Gaseous fuels

The following Annex shall be added to Annex V:

"SO2 emission limit values to be applied by 1 January 2005 by all plants for which a licence was granted before 1 January 2000

Type of fuel

Limit values (mg/Nm3)

Gaseous fuels in general

35

Liquefied gas

5

Low calorific gases from coke oven gas and blast furnace gas

600

(Amendment 13)

ANNEX, point 4 (COM(98)0415)

EMISSION LIMIT VALUES FOR NOx FOR NEW PLANTS

Gaseous fuels

(refers to Annex VI in Directive 88/609/EEC)

NOx emission limit values expressed in mg/Nm3 (O2 content 3%) to be applied by new plants (with the exception of gas turbines) for which the licence is granted on or after 1 January 2000

50 to 300 MWth

> 300 MWth

Natural gases (Note 1)

150

100

Other gases

200

200

Note 1: Natural gas is naturally occurring methane with not more than 20% (by volume) of inerts and other constituents.

NOx emission limit values expressed in mg/Nm3 (O2 content 3%) to be applied by new plants (with the exception of gas turbines) for which the licence is granted on or after 1 January 2000

50 to 300 MWth

> 300 MWth

Natural gases (Note 1)

110

80

Other gases

150

150

Note 1: Natural gas is naturally occurring methane with not more than 20% (by volume) of inerts and other constituents.

(Amendment 14)

ANNEX VI a (new) (Directive 88/609/EEC)

EMISSION LIMIT VALUES FOR NOx FOR NEW PLANTS

The following Annex shall be added to Annex VI:

"NOx emission limit values to be applied by 1 January 2005 by all plants for which a licence was granted before 1 January 2000

Type of fuel

50 to 500 MWth

> 500 MWth

Solid

450

350

Liquid

450

350

Gaseous

350

250

(Amendment 15)

Annex, point 7(b) iiia (new) (COM(98)0415)

(refers to Annex IX(B) Directive 88/609/EEC)

Member States shall take appropriate steps to disseminate up-to-date information on total national as well as plant-by-plant total annual emissions of SO2 and NOx to the public by means of, for example, broadcast media, press, information screens or computer network services and by notification of appropriate organisations, such as environmental organisations. A list of the organisations notified shall be sent to the Commission at the same time as information transmitted under Annex IX(B) of this directive.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants (COM(98)0415 - C4-0591/98 - 98/0225(SYN))

(Cooperation procedure: first reading)

The European Parliament,

- having regard to the Commission proposal to the Council COM(98)0415 - 98/0225(SYN)[2],

- having been consulted by the Council pursuant to Article 189c of the EC Treaty and Article 130s(1) of the EC Treaty (C4-0591/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on the Environment, Public Health and Consumer Protection and the opinion of the Committee on Research, Technological Development and Energy (A4-0121/99),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Council to incorporate Parliament's amendments in the common position that it adopts in accordance with Article 189c(a) of the EC Treaty;

3. Instructs its President to forward this opinion to the Council and Commission.

  • [1] () OJ C 300, 29.9.1998, p. 6.
  • [2] () OJ C 300, 29.9.1998, p. 6.

B EXPLANATORY STATEMENT

1. Introduction

There are around 2000 large combustion plants (LCPs) - with a thermal input of 50 megawatt (MW) or more - in operation throughout the Community today. Some 500 of these plants are operated in order to produce electricity and around 1500 are used as industrial power generation plants, for example in the chemical industry. These plants contribute to transboundary air pollution through the emissions of sulphur dioxide (SO2)and nitrogen oxides(NOx)as well as having a local environmental impact. In 1990 this sector emitted 63% of all sulphur dioxide (SO2) and 21% of all nitrogen oxide(NOx) that was being let out in the EU's present fifteen member states[1].

Due to the sectors important emissions of SO2 and NOx, the revision of the existing LCP directive was mentioned as a important component in the Community's strategy to combat acidification[2]. The Acidification strategy also suggested that a reduction of emissions from LCPs, on a Community-wide basis, would be a cost-effective instruments to attain the strategy's targets.

Since NOx - together with Volatile Organic Compounds (VOCs)- is also a precursor for the formation of ground-level ozone, the revision of the LCP directive will also play an important role in attaining the targets in the Community's forthcoming ozone strategy. Apart from specifically reducing acidification and the formation of ground-level ozone, tighter emission standards for SO2 and NOx would also improve public health in general through the reduction of respiratory problems throughout the Community.

2. Content of the Commission's proposal

In November 1988 the Council adopted the Directive on the limitation of emissions of certain pollutants into the air from large combustion plants[3] after years of laborious negotiations. The Directive establishes - based on Article 130s(1) of the Treaty - minimum emissions requirements for LCPs with the possibility for Member States to adopt stricter national standards.

The Directive also requires the Commission to submit proposals, "in the light of the state of technology and environmental requirements", by 1 July 1995 for the revision of limit values applicable. The Commission's present proposal is the result of this obligation.

The Commission proposal contains new limit values for three types of pollutants - SO2 , NOx and dust

- for plants, with a thermal input of 50MW or more, for which the license is granted after 1 January 2000. The proposal introduces limit values that are twice as strict as the current values. The proposal would in fact create three classes of LCPs depending on their age and governed by three different sets of legislation:

- Old plants which operating license was granted before 1 July 1987 are not covered by Community legislation and are governed by multitude of national and regional legislations,

- Present plants which operating license was granted between 1 July 1987 and 31 December 1999 are covered by the existing LCP Directive and,

- New plants which operating license will be granted after 1 January 2000 are covered by the proposed revised LCP Directive.

Furthermore, the proposed directive brings NOx emissions from gas turbines within the scope of the directive due to the rapid growth in the use of these turbines for the production of electricity - a trend that is likely to be sustained; gas accounted for less than 20% of fossil fuels consumed for the production of electricity in 1995, in 2010 this figure is estimated to be 50%.

Other new aspects of the proposal include:

- a clarification of the relationship between the LCP directive and the waste incineration directives (Article 2.6),

- a clear definition and specific limit values for biomass as a source of energy (Article 2.11), - promoting the use of combined heat and power by obliging competent authorities to "ensure

that there is provision for the combined generation of heat and electricity where this is technically and economically feasible." (Article 7),

- reinforced provisions on monitoring and compliance requirements as well as clarified methods of measurement of emissions (Article 15.4 and Annex 9).

3. Emissions of sulphur dioxide (SO2) from new plants

Sulphur emissions from LCP are abated through the use of Flue Gas Desulphurisation (FGD) systems which have improved considerably over the last decade, especially in terms of removal efficiency and reliability of operation at lower cost.

The most widely used FGD technology throughout the world are the so called wet scrubbers. This technique can achieve removal efficiencies as high as 99%. Wet scrubbers - which produces re-usable gypsum as a by-product - is likely to overtake all other FGD technologies, especially with the increased cost of land filling in Europe. With existing abatement technologies and the use of low sulphur fuels almost any new plant - independent of size - could attain emissions levels around or even below 100 mg of sulphur/Nm3. A number of plants already in operation attain levels well below 100 mg /Nm3.

The Commission proposal for SO2 emission limits for post-2000 plants ranges from 850 mg/Nm3 for the smallest category of plants(50-100 MW) to 200 mg/Nm3 for the largest installations (>500 MW). These requirements appear far to modest considering existing techniques for sulphur reduction. A general emission ceiling of 200 mg/Nm3 for all plant sizes would be more in line with existing abatement technologies.

4. Emissions of nitrogen oxides (NOx) from new plants

NOx emissions can be either abated or controlled by primary measures or flue gas treatment technologies. Primary measures include, for example, low NOx burners which optimises fuel and air mixing and thereby NOx formation. Recent tests[4] suggest that the combination of low NOx burners with other primary measures can achieve up to 74% NOx removal efficiency. Today almost all new plants incorporate primary measures to curb NOx formation since they can included in the plant design at a low cost.

The most commonly used flue gas treatment for NOx reduction is the selective catalytic reduction (SCR) process which can reduce NOx emissions with up to 80-90%. SCR technology has been used commercially in Japan since 1980 and in Germany since 1986.

The Commission proposal for NOx emission limits for post-2000 plants ranges from 400 mg/Nm3 for the smallest category of plants (50-100 MW) to 200 mg/Nm3 for the largest installations (>300 MW). These limits could be tightened.

5. Existing plants

The revised LCP directive does not include any common emission limits for plants which operating license was granted before 1 July 1987.

According to a recent study[5] contracted by the Commission, the impact of the revised LCP directive would be fairly limited in the short term - in 2010 the specific measures proposed in the directive would lead to a 3% reduction of SO2 emissions and a 6% reduction of NOx emissions from the sector. The proposed directive's impact on overall SO2 and NOx emissions would be 1% for each pollutant in 2010. That same year 85% of SO2 emissions and 72% of NOx emissions from the LCP sector will be emitted by plants built before 1 July 1987 and therefore not covered by Community legislation.

For example, a newly built LCP has an expected operational life of 30-40 years and sometimes, exceptionally, even up to 50 years. That means that a plant taken into operation in 1985 could be operational well into the 2020s without being covered by any specific Community legislation. Since SO2 and NOx are transboundary pollutants and can cause environmental degradation in the whole Community, it is of paramount importance that all LCPs - new as well as existing - should be covered by the LCP directive.

In its explanatory statement the Commission advocates that emissions from the LCP sector will also be covered by the forthcoming Commission proposal on national emission ceilings (for SO2, NOx, VOCs and ammonia) and by the IPPC Directive which leaves a higher degree of flexibility to member states. Referring to the NEC and IPPC directives contains a high degree of uncertainty since one directive does still not exist as a final proposal and the other has yet not entered into force. Considering the sometimes widening gap between the ambition of the Community's environmental legislation and its implementation it would be preferable to extend the LCP directive to cover all existing plants - for example from 2005 - until a thorough assessment has been made of the implementation of the Community's more flexible legislative instruments such as the IPPC and NEC directives. The emission limits for existing plants should also be updated taking into account new abatement technologies which can be retrofitted to existing plants.

Finally, it is the Rapporteur's strong view that more polluting fuels should not be given an advantage through higher emissions ceilings and, therefore, the same emission standards should apply to both solid and liquid fuels for new as well as for existing plants.

25 February 1999

  • [1] () Source: CORINAIR.
  • [2] () COM(97)0088.
  • [3] () OJ L 336, 7.12.1988, page 1.
  • [4] () Source: International Energy Agency.
  • [5] () IIASA, Impact of Revised Emission Limit Values for Large Combustion Plants on EU15 Countries' Emissions in the Year 2010, 4.12.1998.

OPINION

(Rule 147)

for the Committee on the Environment, Public Health and Consumer Protection

on the proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants (COM(98)0415 - C4-0591/98 - 98/0225(SYN)) (report by Mrs Oomen-Ruijten)

Committee on Research, Technological Development and Energy

Draftsman: Mrs María Teresa Estevan Bolea

PROCEDURE

At its meeting of 23 September 1998 the Committee on Research, Technological Development and Energy appointed Mrs Estevan Bolea draftsman.

It considered the draft opinion at its meetings of 26 January and 23 February 1999.

At the latter meeting it adopted the following conclusions by 22 votes to 1.

The following were present for the vote: Scapagnini, chairman; Adam and Lange, vice-chairmen; Estevan Bolea, draftsman; Argyros, Bloch von Blottnitz, Camisón Asensio, (for Malerba), Chichester, Dimitrakopoulos (for Rovsing), Gomolka (for W.G. van Velzen), Graenitz (for Rothe), Haug, (for McAvan), Hudghton (for Weber), Linkohr, McNally, Mombaur, Oomen-Ruijten (for QuisthoudtRowohl, pursuant to Rule 138(2)), Plooij-van Gorsel, Rapkay (for Desama, pursuant to Rule 138(2)), Robles Piquer (for Matikainen-Kallström), Soulier, Stockmann, Tannert and Trakatellis (for Ferber, pursuant to Rule 138(2)).

A.EXPLANATORY STATEMENT

I. INTRODUCTION

On 24 November 1988 the Council adopted Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants (LCPs).

This Directive, known as the LCP Directive, has done much to reduce air pollution in the Community. Air pollution problems, however, are continuing to grow in urban areas and various other parts of the Union.

The acidification of our environment needs to be reduced further, and the Commission has accordingly laid down a Community strategy to combat it. The same applies to airborne ozone concentrations. Because they act as precursors, nitrogen oxides and volatile organic compounds increase the build-up of ozone, and emissions of these gases must therefore also be controlled.

On the other hand, there have been very considerable technological advances in the last ten years as regards flue gas desulphurisation and denitrification. As a result, emission levels can be set according to what can be achieved with the aid of the above corrective measures, observing the BAT and BATNEEC concept, that is to say, the use of the best available technology not entailing excessive cost.

In the Commission communication to the Council and Parliament on the Community strategy to combat acidification, revision of Council Directive 88/608/EEC is identified as a component of the strategy, bearing in mind that large combustion plants, in other words those with a thermal input of 50 MW or more, produce 63% of the Union's sulphur dioxide (SO2) emissions and 21% of its emissions of nitrogen oxides (NOx).

According to research conducted by Eurelectric and Unipede in 1997, the forecasts for new thermal power plants in the fifteen Union Member States up to the year 2010 total 55 000 megawatt thermals (MW (Th)) in the case of plants fired by coal, lignite, or liquid fuel and 220 000 megawatt thermals in the case of those fired by natural gas. This figure of 275 000 MW (Th) will be added to the existing conventional heat capacity, 700 000 MW (Th) in 1995.

Given these figures, emissions of sulphur dioxide, nitrogen oxides, particulates, and carbon dioxide may increase substantially, even though great efforts are being made to reduce emissions from individual plants, this being the goal which has largely prompted the proposal to revise and amend Directive 88/609/EEC.

II. CONTENT OF THE PROPOSAL FOR A DIRECTIVE

The new proposal for a Directive amending the original Directive 88/609/EEC is designed to enable the latter to incorporate the technical advances affecting large combustion plants over the past 15 years. The proposal will help to:

- make it possible, without neglecting cost-effectiveness, to meet the targets set in 1997 in the Commission's acidification control strategy;

- further reduce health risks, especially those stemming from small suspended particles and the formation of tropospheric ozone, of which nitrogen dioxide (NO2) is a major precursor. The lower emissions resulting from the amendments contained in the proposal might serve to ensure that the projected air quality targets for sulphur dioxide, nitrogen oxides, particulates, and ozone could be achieved.

The revision is basically intended to:

- update the emission limit values applicable to combustion plants put into service after 1 January 2000 and

- extend the scope of the Directive to include gas turbines.

The proposal is also seeking to:

- update the fuel types covered, not least by clarifying the relationship with the waste incineration Directives and tackling the use of biomass as an energy source;

- promote the development of combined heat and power generation;

- update the provisions on abnormal operating conditions;

- tighten up the provisions on emission monitoring (which will also apply to emissions from existing plants) and compliance with the limit values;

- update the provisions on the annual sulphur dioxide and nitrogen oxides emissions inventory to include data on new and existing plants, classified separately, and energy consumption figures with a view to shedding light on trends regarding emission factors.

In addition, Community measures are taking place in a context in which broader international activities are being pursued, especially under the UN-ECE Convention on Long-Range Transboundary Air Pollution and the Protocols thereto, first and foremost those concluded in Sofia and Oslo.

A further aim being sought through the revision is to move into line with Directive 96/61/EC on integrated pollution prevention and control (IPPC).

III. SOCIO-ECONOMIC IMPACT OF THE PROPOSAL FOR A DIRECTIVE

The Commission has had a number of studies carried out to gauge the economic and social impact of the new requirements which the proposal will impose on the energy sector and, in the final analysis, consumers.

The reference period where new plants are concerned covers the years 2000 to 2010. The new capacity to be installed by the electricity supply industry is expected to total 30 000 MW (Th), and the increase in gas turbine capacity 150 000 MW (Th). A third of the latter figure (50 000 MW (Th)) will be accounted for by combined cycle power generation, and the rest by industrial cogeneration.

The estimated total additional cost of the measures to reduce sulphur dioxide, nitrogen oxides, and all types of suspended particulates originating from boilers will be EUR 800 m for the period from 2000 to 2010. The estimated total cost of the measures to reduce gas turbine nitrogen oxides will be EUR 1 200 m for the same ten-year period. The grand total is thus EUR 2 000 m.

The estimated cost of removing sulphur dioxide from larger plants ranges from EUR 400 to EUR 800 per tonne removed. In the case of smaller plants, the cost could vary between EUR 1 000 and EUR 2 000 if abatement equipment were used, although the alternative of using low-sulphur coal would probably cost less than EUR 1 000 per tonne not emitted.

As far as suspended particulates are concerned, the figure is approximately EUR 1 000 per tonne removed, although it could reach any point on a scale between EUR 0 and EUR 2 000 according to the particular circumstances.

As regards nitrogen oxides, the estimated costs are less than EUR 500 per tonne not emitted, assuming that the emission limit values can be attained by means of primary measures, as will be the case for most plants. If, in addition to primary measures, flue gas denitrification will be required, the costs may rise as high as EUR 1 500 or EUR 2 000 per tonne removed.

Since gas turbines are not regulated at Community level, the cost estimate is based on full abatement through combustion measures aimed at complying with the proposed emission limit values. The costs thus estimated range from EUR 200 to EUR 400 per tonne of nitrogen oxides not emitted, depending on the size of the turbine.

The amendments being proposed apply only to new plants put into service after the year 2000. Breaking down the estimated cost of the changes in the period from 2000 to 2010, EUR 2 000 m as indicated above, approximately EUR 1 200 m will be borne by the electricity supply industry, and EUR 800 m by other industrial sectors.

B.CONCLUSIONS

The Committee on Research, Technological Development and Energy:

1. Supports the proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants.

2. Endorses the measures laid down to reduce air pollution caused by emissions of sulphur dioxide, nitrogen oxides, and particulates, and welcomes the internalisation of environmental protection costs that will result when the realisable technical improvements covered in the proposal for a Directive are put into effect.

3. Calls on the Member States to take the steps required, especially in the area of spatial planning, to ensure that waste heat produced by electricity generation can be put to use in newly licensed combustion plants.

4. Points out that, when implementing the proposed amendments to Directive 88/609/EEC, it will be necessary to allow for the various situations and circumstances giving rise to the micro- and macro-environmental air pollution occurring in different parts of the Union exposed to concentrations of particular pollutants. Notes that critical loads often arise because noxious substances are carried over long distances. Considers, therefore, that all fixed plants must be subject to the same conditions, to ensure that the spread of noxious substances does not inflict inadmissible costs and pollution on other areas of the Union.

5. Calls on the Commission to take into account the properties of the domestic coal types existing in various Member States, to ensure that particulate emission limits are consistent with what is technically feasible, applying the BATNEEC concept (use of the best available technology not entailing excessive cost) in accordance with the proportionality principle.

6. Recognises that in certain situations and circumstances, the obligation of complying with the new emission limits laid down for sulphur dioxide may have to be suspended for periods not exceeding six months if stocks of low-sulphur fuels run out when there is a specific crisis or severe shortage of supply.

7. Believes that, in the near future, the Commission should submit a communication to the Council and Parliament assessing how far it might be possible to exploit the workings of the market, for instance by trading in instruments negotiable in every Member State, with a view to optimising environmental protection performances and costs so as to obtain results comparable to what could be achieved by direct regulation alone.

8. Believes that proposals on negotiable emission rights must contain clear-cut rules on monitoring, reporting, and penalties for non-compliance.

9. Calls on the Commission to study and determine factors causing pollutants to be emitted into the air, with specific reference to sulphur dioxide, nitrogen oxides, particulates, carbon dioxide, volatile organic compounds, and carbon monoxide, as they affect the different types and sizes of combustion plants and the various fuels, taking into account the emissions produced with and without the corrective measures required in order to comply with the emission levels laid down in the proposal for a Directive.

10. Finally, the Committee on Research, Technological Development and Energy calls on the Committee on the Environment, Public Health and Consumer Protection to incorporate the following amendments in its report:

Text proposed by the Commission

Amendments by Parliament

(Amendment 1)

Recital 4a (new)

(4a) Whereas limit values for sulphur emissions and content are laid down in Annex V to the 1994 Oslo Protocol to the 1979 Geneva Convention on LongRange Transboundary Air Pollution;

(Amendment 2)

Recital 6a (new)

(6a) Whereas the proportionality principle needs to be observed; whereas the same end results could be achieved if, in addition to direct regulation, the workings of the market were brought into play, for instance by trading in instruments negotiable in every Member State, bearing in mind that bubble or hedge stocks or deposits are tradable options;

(Amendment 3)

Article 1(3)

3. In Article 4, paragraph 2 is deleted.

3. Before 1 July 2007, and in the light of the state of technology and environmental requirements, the Commission shall submit proposals for the revision of the limit values applicable.

(Amendment 4)

Article 1(5)

5. Article 7 is replaced by the following:

5. Article 7 is replaced by the following:

"Article 7

"Article 7

In new plants for which the licence is granted on or after 1 January 2000 the competent authorities shall ensure that there is provision for the combined generation of heat and electricity where this is technically and economically feasible. To this end, the Member States shall ensure that operators examine the possibilities of locating the installations on sites with a heat requirement."

1 In new industrial plants for which the licence is granted on or after 1 January 2000 the competent authorities shall offer the appropriate encouragement to help ensure that there is provision for the combined generation of heat and electricity where this is technically and economically feasible. To this end, the Member States shall ensure that operators examine the possibilities of locating the installations on sites with a heat requirement.

2. Thermal power plant sites may be selected in the light of other requirements, according to electricity needs."

(Amendment 5)

Article 1(6)(a) and (b)

6. Article 8 is amended as follows:

6. Article 8 is amended as follows:

(a) Paragraph 1 is replaced by the following:

(a) Paragraph 1 is replaced by the following:

"1. Member States shall ensure that provision is made in the licences referred to in Article 4(1) for procedures relating to malfunction or breakdown of the abatement equipment. In case of a breakdown the competent authority shall in particular require the operator to reduce or close down operations if a return to normal operation is not achieved within 24 hours, or to operate the plant using low polluting fuels. In any case the competent authority shall be notified within 48 hours. In no circumstances shall the cumulative duration of unabated operation in any one year period exceed 120 hours except in cases where, in the judgement of the competent authority, there is an overriding need to maintain energy supplies."

"1. Member States shall ensure that provision is made in the licences referred to in Article 4(1) for procedures relating to malfunction or breakdown of the abatement equipment. In case of a breakdown the competent authority shall in particular require the operator to reduce or close down operations if a return to normal operation is not achieved within 72 hours, or to operate the plant using low polluting fuels. In any case the competent authority shall be notified within 48 hours. In no circumstances shall the cumulative duration of unabated operation in any one year period exceed 240 consecutive hours except in cases where, in the judgement of the competent authority, there is an overriding need to maintain energy supplies."

(b) Paragraph 2 is deleted.

(b) Paragraph 2 is replaced by the following:

"2. The competent authority may allow the obligation of complying with the sulphur dioxide emission limit values laid down in Article 4 to be suspended for not more than six months where the plants concerned normally use low-sulphur fuels to meet the above requirement and the operator cannot comply with the limit values because the supply of low-sulphur fuel has run out as a result of a severe shortage."

(Amendment 6)

Article 1(9)

9. In Article 15, the following paragraph 4 shall be added:

9. In Article 15, the following paragraph 4 shall be added:

"4. For new plants for which the licence is granted on or after 1 January 2000, the emission limit values shall be regarded as complied with if:

"4. For new plants for which the licence is granted on or after 1 January 2000, the emission limit values shall be regarded as complied with if:

- no validated daily average value exceeds the relevant figures set out in Annexes III to VII;

- no validated monthly average value exceeds the relevant figures set out in Annexes III to VII;

- no validated hourly average value exceeds 200% of the relevant figures set out in Annexes III to VII.

- no validated daily average value exceeds 150% of the relevant figures set out in Annexes III to VII.

The "validated average values" are determined as set out in Annex IX, Part A, paragraph 6."

The "validated average values" are determined as set out in Annex IX, Part A, paragraph 6."

(Amendment 7)

ANNEX, point 6

6. The following is added to Annex VIII:

6. The following is added to Annex VIII:

"For new plants for which the licence is granted on or after 1 January 2000

For new plants for which the licence is granted on or after 1 January 2000

? 300MWth

50 to 100MWth

100 to 300MWth

? 300MWth

95%

60%

80%

90%

50 to 100MWth

100 to 300MWth

90%

92%

NB: Installations which achieve 300 mg/Nm3 SO2 are exempt from application of the relevant rate of desulphurisation."

(Amendment 8)

ANNEX, point 7(a)(iv)

7. Annex IX is amended as follows:

7. Annex IX is amended as follows:

(a) Part A is amended as follows:

(a) Part A is amended as follows:

(iv) The following paragraphs 5 and 6 are added:

(iv) The following paragraphs 5 and 6 are added:

"5. The value of the 95% confidence intervals determined at the emission limit values shall not exceed the following percentages of the emission limit value:

"5. The value of the 95% confidence intervals determined at the emission limit values shall not exceed the following percentages of the emission limit value:

Sulphur dioxide 20%

Sulphur dioxide 20%

Nitrogen oxides 20%

Nitrogen oxides 20%

Dust 30%

Dust 40%

6. The validated hourly and daily average values shall be determined within the effective operating time (excluding start-up and shutoff periods), from the measured valid hourly average values after having subtracted the value of the confidence interval specified above.

6. The validated hourly and daily average values shall be determined within the effective operating time (excluding start-up and shutoff periods), from the measured valid hourly average values after having subtracted the value of the confidence interval specified above.

Any day in which more than three-hourly average values are invalid due to malfunction or maintenance of the continuous measurement system shall be invalidated. If more than ten days over a year are invalidated for such situations the competent authority shall require the operator to take adequate measures to improve the reliability of the continuous monitoring system."

Any day in which more than three-hourly average values are invalid due to malfunction or maintenance of the continuous measurement system shall be invalidated. If more than ten days over a year are invalidated for such situations the competent authority shall require the operator to take adequate measures to improve the reliability of the continuous monitoring system."

(Amendment 9)

ANNEX, point 7(b)(iii)a (new)

(iii)a The Commission shall determine emission factors affecting the different fuels and plants with and without the appropriate corrective measures, with specific reference to SO2, NOx, particulates, and CO2.