The proposal was amended as follows:

Text proposed by the Commission (1)   Amendments by Parliament Amendment 1 Recital 10 a (new) (10a) The annual appropriations are decided by the budgetary authority in the budgetary procedure. Amendment 29 Article 1, paragraph 2    2. The general objective of this Programme shall be to promote NGOs, which are primarily active in the field of environmental protection at a European level and which contribute, or have the ability to contribute, to the development and implementation of Community environmental policy and legislation in all regions of Europe. The Programme shall also promote the systematic involvement of NGOs at all stages of the Community environmental policy-making process, by ensuring relevant representation in stakeholder consultation meetings and public hearings.    2. The general objective of this Programme shall be to promote NGOs which are primarily active in the field of environmental protection and enhancement, or also active in the field of animal protection provided that such activities serve to achieve environmental protection objectives, at a European level and which contribute, or have the ability to contribute, to the development and implementation of Community environmental policy and legislation in all regions of Europe. The Programme shall also promote the systematic involvement of NGOs at all stages of the Community environmental policy-making process, by ensuring relevant representation in stakeholder consultation meetings and public hearings. Amendment 30 Article 2, point (a)    (a) it must be an independent and non-profit-making legal person primarily active in the field of environmental protection, with an environmental objective aimed at the public good;    (a) it must be an independent and non-profit-making legal person primarily active in the field of environmental protection and enhancement, or also active in the field of animal protection provided that such activities serve to achieve environmental protection objectives, with an objective aimed at the public good; Amendment 31 Article 2, point (b)    (b) it must be active at a European level, with a structure (membership base) and activities covering at least three European countries;    (b) it must be active at a European level, either singly or in the form of several coordinated associations, with a structure (membership base) and activities covering at least three European countries, except in the case of organisations operating in two of the accession countries, where this will be deemed desirable but not essential as a specific derogation; Amendment 5 Article 2, point (b a) (new)    (ba) it must develop networks between organisations in Member States and organisations in the accession countries; Amendment 6 Article 2 point (c a) (new)    (ca) it must encourage partnerships with organisations in the public and private sector; Amendment 7 Article 2 point (d a) (new)    (da) it must be able to attract part-financing from external sources. Amendment 8 Article 3 a (new) Article 3 a Given the importance for sustainable development and for the health and quality of life of European citizens, the Programme identifies, in particular, the priority issues from the Sixth Environment Action Programme, that have been grouped under four main headings:    - limiting climate change,    - nature and bio-diversity - protecting a unique resource,    - health and environment,    - ensuring the sustainable management of natural resources and wastes. The Sixth Environment Action Programme will be subject to a review in the fourth year of operation and revised and updated, as necessary, to take account of new developments and information. In addition to the above-mentioned areas, environmental education and implementation and enforcement of Community environmental legislation shall also be priorities. Amendment 9 Article 4, paragraph 2    2. The Call for Proposals shall set out the eligibility, selection and award criteria and the application, assessment and approval procedure.    2. The Call for Proposals shall include an information package and shall set out the eligibility, selection and award criteria (including details of the proposed weighting system) and the application, assessment and approval procedure. Amendment 10 Article 4, paragraph 3    3. After assessing the proposals, the Commission shall decide which organisations are to receive financing in the following year, by 31 December each year, save for a delay in the adoption of the Community budget . The decision shall give rise to an agreement between the Commission and the beneficiary, fixing the maximum amount of the grant, the modalities of payment, the control and monitoring measures and the objectives to be achieved by the grant.    3. After assessing the proposals, the Commission shall decide by 31 December each year, except where adoption of the Community budget is delayed, which organisations are to receive financing in the following year . The decision shall give rise to an agreement between the Commission and the beneficiary, fixing the maximum amount of the grant, the modalities of payment, the control and monitoring measures and the objectives to be achieved by the grant. Payment shall be made immediately. Amendment 11 Article 4, paragraph 3 a (new) 3a. The Commission shall publish in the Official Journal of the European Communities by 30 September 2002 an explanation of how it will thereafter determine the legitimacy of NGO applicants in terms of public support or particular expertise, and details of the fixed weighting system used in assessing applications. Amendment 12 Article 4, paragraph 3 b (new) 3b. Selection and procedures shall be transparent and easy to comprehend. The Commission shall invite two representatives of the European Parliament to attend selection and award meetings as observers. Amendment 13 Article 6, paragraph 1, subparagraph 2 The amount shall be determined annually according to a fixed weighting system, which takes into account the score values resulting from the assessment described in Article 5 and the relative size of the NGOs as outlined in part 3 of the Annex. The amount shall be determined annually according to a fixed weighting system, which takes into account the score values resulting from the assessment described in Article 5 and the principles as outlined in part 3 of the Annex. Amendment 14 Article 6, paragraph 2    2. A beneficiary under this Programme shall be free to use the grant to cover eligible expenses of the organisation , as it deems appropriate, over the grant year. All expenses incurred by the beneficiary during the grant year shall be considered eligible, except for those specified in point 4 of the Annex.    2. A beneficiary under this Programme shall be free to use the grant to cover eligible expenses of the NGO , as it deems appropriate, over the grant year. All expenses incurred by the beneficiary during the grant year shall be considered eligible, except for those specified in part 4 of the Annex. Beneficiaries may also disburse funds to partners or member organisations in accordance with details specified in the approved work programme. Amendment 15 Article 6, paragraph 2 a (new) 2a. Contributions in kind or work done without payment may be fully credited as expenses in monetary terms. Amendment 16 Article 6, paragraph 5 a (new) 5a. The Commission shall provide unsuccessful applicants with reasons for the NGO's failure to meet the requirements, giving sufficient explanation to enable them to identify reforms needed prior to making new applications. Amendment 17 Article 7, paragraph 3    3. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspective.    3. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspective. They shall take into account the conditions stated in Article 11. Amendment 18 Article 8    1. In order to protect the European Communities" financial interests against fraud and other irregularities, the Commission may carry out on-the-spot checks and inspections under this Programme in accordance with Council Regulation (EURATOM, EC) No 2185/96 of 11 November 1996. In addition, investigations conducted by the European Anti-Fraud Office (OLAF) are governed by Regulation (EC) No 1073/1999 of the European Parliament and of the Council.    1. In order to protect the European Communities" financial interests against fraud and other irregularities, the Commission may carry out on-the-spot checks and inspections under this Programme in accordance with Council Regulation (EURATOM, EC) No 2185/96 of 11 November 1996(1) . If appropriate , investigations shall be conducted by the European Anti-Fraud Office (OLAF). Such investigations shall be governed by Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999(2) .    2. The beneficiary of a grant shall keep available for the Commission all the supporting documents, including the audited financial statement, regarding expenditure incurred during the grant year for a period of five years following the last payment.    2. The beneficiary of a grant and, where appropriate, its partners or members, shall keep available for the Commission all the supporting documents, including the audited financial statement, regarding expenditure incurred during the grant year for a period of five years following the last payment. ___________ (1) OJ L 292, 15.11.1996, p. 2. (2) OJ L 136, 31.5.1999, p. 1. Amendment 19 Article 10 A list of the beneficiaries to be financed under this Programme, together with the amount allocated, shall be published each year in the Official Journal of the European Communities. A list of the beneficiaries to be financed under this Programme, together with the amount allocated and the score value achieved , shall be published each year in the Official Journal of the European Communities. Each applicant whose application is rejected shall receive an easily comprehensible, justified notification setting out the score value achieved and the score value which would have been required for a positive decision. Amendment 20 Article 11, paragraph -1 (new) The Commission shall provide by 30 April each year a report on the process of allocating grants for the current year, and outcomes from grants for the previous year. The report shall include an explanation of how the Commission has selected beneficiaries for the current year. The Commission shall convene a meeting of Member States, representatives of the European Parliament and other stakeholders to discuss this report by 30 June each year. Amendment 21 Article 11, paragraph 1 By 31 December 2004 at the latest, the Commission shall submit a report to the European Parliament and the Council on the achievement of the objectives of this Programme during the first three years and shall, if appropriate, make proposals for any adjustment to be made with a view to continuing or not continuing the Programme. This Report shall be based on the reports concerning beneficiaries" performance and assess, in particular, their effectiveness in contributing to the objectives stated in Article 1 and the Annex. By 31 December 2004 at the latest, the Commission shall submit a report to the European Parliament and the Council on the achievement of the objectives of this Programme during the first three years and shall, if appropriate, make proposals for any adjustment to be made with a view to continuing or not continuing the Programme. This Report shall be based on the reports concerning beneficiaries" performance and shall assess, in particular, their effectiveness in contributing to the objectives stated in Article 1 and the Annex. When the Commission submits the preliminary draft budget, it shall forward to the budgetary authority the result of the quantitative and qualitative evaluation of the measure based on the annual programme and on the performance indicators. Amendment 22 Annex, point 2, indent 1, sub-indent 3 a (new)    - Relevance in terms of strengthening European links and interconnection among small regional or local associations working in their respective areas to apply the acquis communautaire in relation to the environment and sustainable development. Amendment 23 Annex, point 3, point 1    (1) When all other parameters are equal, larger NGOs (as measured by the average of their preceding two years' audited annual expenses and the forecasted total eligible expenses for the grant year) will receive higher amounts than smaller ones. However, the larger the NGO, the relatively smaller this size advantage will be;    (1) When all other parameters are equal, the grant amount for NGOs with larger volumes of relevant activities (as measured by the average value of their preceding two years' audited annual expenses and the forecasted total eligible expenses for the grant year) will normally be higher than the grant amounts for NGOs with smaller volumes of relevant activities. However, the distribution will be made on a non-linear basis and so beneficiaries with smaller volumes of relevant activities will receive a relatively higher rate of support . Amendment 24 Annex, point 4, indent 7    - Contributions in kind    - Contributions in kind for organisations with an annual budget of at least EUR 300 000.

(1) OJ C 270 E, 25.9.2001, p.125.

(Codecision procedure: first reading)

The European Parliament,

-  having regard to the Commission proposal to the European Parliament and the Council (COM(2001) 337 (1) ),

-  having regard to Article 251(2) of the EC Treaty and Article 175(1) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C5-0281/2001 ),

-  having regard to Rule 67 of its Rules of Procedure,

-  having regard to the report of the Committee on the Environment, Public Health and Consumer Policy and the opinion of the Committee on Budgets (A5-0317/2001 ),

1.  Approves the Commission proposal as amended;

2.  Asks to be consulted again should the Commission intend to amend the proposal substantially or replace it with another text;

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

(1) OJ C 270 E, 25.9.2001, p.125.