IRISH ENVIRONMENTAL LAW ASSOCIATION Recent developments in European environmental law between 23rd February, 2010 and 13th April, 2010 Caroline Gibney B.L. A) B) C) A) Legislative Update Environment Council update – 3002nd Environment Council meeting Recent case law, 23rd February, 2010 to April 13th, 2010 Legislative Update Commission Directive 2010/26/EU of 31 March 2010 amending Directive 97/68/EC of the European Parliament and of the Council on the approximation of the laws of the Member States relating to measures against the emission of gaseous and particulate pollutants from internal combustion engines to be installed in non-road mobile machinery Amends the emission control strategy for non-road mobile machinery, such as hedge trimmers and tree cutting equipment, and extends the type of engines approved for use. Commission Regulation (EU) No 276/2010 of 31 March 2010 amending Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as regards Annex XVII (dichloromethane, lamp oils and grill lighter fluids and organostannic compounds) Incorporates into the REACH regulations a number of decisions (455/2009/EC, 2009/424/EC and 2009/425/EC) relating to restrictions on the marketing and use of a range of substances, including dichloromethane, lamp oils and grill lighter fluids and organostannic compounds (chemical compounds based on tin with hydrocarbon substituents). Commission Regulation (EU) No 196/2010 of 9 March 2010 amending Annex I to Regulation (EC) No 689/2008 of the European Parliament and of the Council concerning the export and import of dangerous chemicals Amends Regulation (EC) No 689/2008 to reflect regulatory changes in respect of certain chemicals, including the banning of butralin, diniconazole-M, flurprimidol, nicotine, propachlor, anthraquinone, dicofol, 2-naphthyloxyacetic acid, propanil and tricyclazolefor, atrazine for pesticide use and the chemicals amitraz and simazin for plant protection use and extending the PIC (Prior Informed Consent) procedure contained in Regulation (EC) No 689/2008 to tributyltin compounds. Commission Decision of 2 March 2010 (2010/135) concerning the placing on the market, in accordance with Directive 2001/18/EC of the European Parliament and of the Council, of a potato product (Solanum tuberosum L. line EH92-527-1) genetically modified for enhanced content of the amylopectin component of starch Commission Decision of 2 March 2010 (2010/136) authorising the placing on the market of feed produced from the genetically modified potato EH92- 527-1 (BPS-25271-9) and the adventitious or technically unavoidable presence of the potato in food and other feed products under Regulation (EC) No 1829/2003 of the European Parliament and of the Council Two decisions permitting a genetically modified potato product, Solanum tuberosum L. line EH92-527-1 produced by BASF Plant Science, to be placed on the market for cultivation and the production of starches for industrial use, as well as use in animal feed (but not for human consumption). The decisions were taken by the Commission after the Council was unable to reach a decision by qualified majority. Commission Decision of 25 February 2010 amending, for the purposes of adapting to scientific and technical progress, the Annex to Directive 2002/95/EC of the European Parliament and of the Council as regards an exemption for an application of cadmium This decision extends an exemption for the use of cadmium in colour-converting LED until July 1st, 2014. By then it is expected that appropriate cadmium-free technology will have been developed so as to enable the use of cadmium to be discontinued. European Environmental Law updates between February 23rd, 2010 and 13th April, 2010 Page 2 of 7 B) Environment Council Meeting 3002nd Council meeting in Brussels on March 15th, 2010 - Soil Protection The Council was briefed on progress on a draft directive establishing a framework for the protection of soil (link to the full progress report here). The Council has not yet reached political agreement on this issue. Delegates were divided on the issue of soil protection; some expressed a desire for an EUlevel instrument to fill the gap in environmental legislation, while others opposed the proposal with regard to subsidiarity, the administrative burden and cost-effectiveness. - Biodiversity The Council adopted conclusions setting out the EU headline target on halting the loss of biodiversity and the degradation of ecosystems services and restoring them in so far as feasible by 2020, and its vision for the better protection of biodiversity in the EU by 2050. They also outline the EU's stance concerning biodiversity protection at global level and the further development of the EU position on the future international regime on access to genetic resources and benefit sharing. In addition, the conclusions call for reinforced mainstreaming of biodiversity objectives in crosscutting EU policies and strategies. (link to the full set of conclusions here). - Climate change The Council adopted conclusions on the follow-up to the Copenhagen climate conference (7 - 19 December 2009) (link to the full set of conclusions here). They also requested the Commission to present an assessment of the comparability and adequacy of greenhouse gas emission reductions offered by third countries as well as an impact assessment of the EU's conditional move to a 30% emissions cut. - CO2 emissions of light vans The Council discussed the proposed regulation setting CO2 emission standards for light commercial vehicles (link to draft regulation here). The proposal would provide for a limit for the average CO2 emissions from new light commercial vehicles of 175g CO2/km, phased in from 2014 to 2016. It would also set a long-term target of 135g CO2/km for 2020 and oblige manufacturers to pay penalties if their fleet fails to meet the objective. Some delegates argued that the objective of 135g CO2/km was difficult to achieve by 2020 and asked for more time, while others asked that minibuses and heavier vans be included. The derogation for low-volume manufacturers was in principle supported. European Environmental Law updates between February 23rd, 2010 and 13th April, 2010 Page 3 of 7 C) Recent Case Law Since 23rd February, 2010 the following judgments may be of interest to members: C-378/08 Judgment Raffinerie Mediterranee C-172/08 Judgment Pontina Ambiente These cases are considered here. 1. C-378/08 Judgment Raffinerie Mediterranee This was a reference for a preliminary ruling concerns the interpretation of the ‘polluter pays’ principle. The dispute concerned the Priolo Gargallo region in Sicily which had been declared a “Site of National Interest for decontamination purposes” and in particular an area called the Augusta roadstead. The roadstead had been affected by recurring incidents of environmental pollution, dating back as far as the 1960s, when the Augusta-Priolo-Melilli site was established as a hub for the petroleum industry. Since that time, numerous undertakings operating in the hydrocarbon and the petrochemical sectors have been set up and/or succeeded one another in the region. The area was the subject of a ‘characterisation’ designed to assess the condition of the land, the water-table, the coastal sea and the seabed. By Ministerial Decree dated October 25th, 1999, the undertakings established on the petrochemical site submitted their proposals for emergency safety measures and measures for decontaminating the water-table, which were ultimately approved. In view of the delay in implementing the proposed measures, the competent public authority required the undertakings to decontaminate and reinstate the seabed of the Augusta roadstead, and in particular to remove contaminated sediment there up to a depth of two metres. It indicated that if those undertakings failed to comply, the works would be carried out by the authorities on their own initiative at the expense of those undertakings. These measures were the subject of an action by the undertakings which was ultimately unsuccessful. Subsequently, the administrative authorities came to the view that the measures that they had previously approved were inadequate for the purpose of remedying the pollution in the Augusta roadstead. Faced with a refusal to comply on the part of the applicant companies, it was decided that the companies should be required to take further measures, including the building of a dam. This decision was challenged. The referring Italian court made the point that there had been a whole succession of petrochemical undertakings in the area, so that it would be not only impossible but also pointless to determine each individual’s share of responsibility, especially since the very fact of pursuing activities which are in themselves hazardous on a contaminated site should be regarded as sufficient to hold those undertakings liable. The referring court asked, in essence, whether the ‘polluter pays’ principle precludes national legislation which allows the competent authority to impose European Environmental Law updates between February 23rd, 2010 and 13th April, 2010 Page 4 of 7 measures for remedying environmental damage on commercial operators on account of the fact that their installations are located close to a contaminated area, without carrying out any preliminary investigation into the occurrence of the contamination or establishing a causal link between the environmental damage and those operators or indeed intent or negligence on the part of those operators. As stated in the preamble to Directive 2004/35, not all forms of environmental damage can be remedied by means of the liability mechanism and for the mechanism to be effective, there needs to be, inter alia, a causal link established between one or more identifiable polluters and concrete and quantifiable environmental damage. However, the court noted that Directive 2004/35 does not specify how such a causal link is to be established. Under the shared competence enjoyed by the European Union and the Member States in environmental matters, where a criterion necessary for the implementation of a directive adopted on the basis of Article 175 EC has not been defined in the directive, such a definition falls within the competence of the Member States and they have a broad discretion, in compliance with the Treaty rules, when laying down national rules developing or giving concrete expression to the ‘polluter pays’ principle Accordingly, the legislation of a Member State may provide that the competent authority has the power to impose measures for remedying environmental damage on the basis of the presumption that there is a causal link between the pollution found and the activities of the operator or operators concerned due to the fact that their installations are located close to that pollution. However, since, in accordance with the ‘polluter pays’ principle, the obligation to take remedial measures is imposed on operators only because of their contribution to the creation of pollution or the risk of pollution (see, by analogy, Case C-188/07 Commune de Mesquer [2008] ECR I-4501, paragraph 77), in order for such a causal link to thus be presumed, the competent authority must have plausible evidence capable of justifying its presumption, such as the fact that the operator’s installation is located close to the pollution found and that there is a correlation between the pollutants identified and the substances used by the operator in connection with his activities. The court concluded that: Directive 2004/35 does not preclude national legislation which allows the competent authority acting within the framework of the directive to operate on the presumption, also in cases involving diffuse pollution, that there is a causal link between operators and the pollution found on account of the fact that the operators’ installations are located close to the polluted area. However, in accordance with the ‘polluter pays’ principle, in order for such a causal link thus to be presumed, that authority must have plausible evidence capable of justifying its presumption, such as the fact that the operator’s installation is located close to the pollution found and that there is a correlation between the pollutants identified and the substances used by the operator in connection with his activities. Articles 3(1), 4(5) and 11(2) of Directive 2004/35 must be interpreted as meaning that, when deciding to impose measures for remedying environmental damage on operators whose activities fall within Annex III to the directive (i.e. activities to which strict liability attaches), the competent authority is not required to establish fault, negligence or intent on the part of operators whose activities are held to be responsible for the environmental damage. On the other hand, that authority must carry out a prior investigation into the origin of the pollution European Environmental Law updates between February 23rd, 2010 and 13th April, 2010 Page 5 of 7 found, and it has a discretion as to the procedures, means to be employed and length of such an investigation. Second, the competent authority is required to establish, in accordance with national rules on evidence, a causal link between the activities of the operators at whom the remedial measures are directed and the pollution. (A further point discussed in the decision is how to apply the cut-off date in the Directive of April 30th, 2007. Following submissions on the point, the court held that Directive 2004/35 applies to damage caused by an emission, event or incident which took place after April 30th 2007 where such damage derives either from activities carried out after that date or activities which were carried out but had not finished before that date.) 2. C-172/08 Judgment Pontina Ambiente Pontina Ambiente, with a registered office in Rome, collected and disposed of waste. In particular, it received solid waste from various municipal authorities in Regione Lazio. It stored the waste and processed it in order to produce derivatives and compost and to reduce its volume. Pursuant to national law, the company was liable to pay up front a levy on solid waste to Regione Lazio, due not later than the month following the calendar quarter during which the waste was deposited. Pontina Ambiente was then obliged to seek reimbursement of this levy from the municipal authorities sending waste to landfill. When the company was late paying the levy for the third and fourth quarters of 2004, Regione Lazio imposed two tax assessments on it in addition to fines under national law. Pontina Ambiente sought to annul these measures. The company raised the incompatibility with EC law of certain rules relating to the levy in terms of determination of the person liable to pay the levy and the system of penalties for late payment, in particular the relevant provisions of Directive 2000/35. It was also critical of the fact that, while the delay in paying the levy was a result of the municipal authorities’ failure to reimburse the levy to Pontina Ambiente, there was no mechanism whereby the municipal authorities could be punished for their failure to pay. The Court of Justice firstly held that Article 10 of Directive 1999/31 required the Member States to take measures to ensure that the price charged for waste disposal in a landfill covered all the costs involved in the setting up and operation of the facility. This was in line with the “polluter pays” principle. The consequence was that whatever the national rules might be governing landfill sites, they must ensure that all the operating costs of such a site were actually borne by the holders of the waste deposited in the landfill for disposal. However, the Court noted that Article 10 of Directive 1999/31 did not impose on the Member States a specific method of financing the cost of a landfill. Consequently, as European Union law currently stands, there is no legislation adopted on the basis of Article 175 EC imposing a specific method upon the Member States for financing that cost, so that the cost may, in accordance with the choice of the Member State concerned, equally well be financed by means of a tax or of a charge or in any other manner European Environmental Law updates between February 23rd, 2010 and 13th April, 2010 Page 6 of 7 The Court therefore concluded that Article 10 of Directive 1999/31 must be interpreted as meaning that it did not preclude a national provision, such as that at issue in the main proceedings, which made the operator of a landfill site subject to a levy to be reimbursed by the local authority depositing the waste and which provided for financial penalties to be imposed on that operator for late payment of the levy, on condition that: (a) those rules were accompanied by measures to ensure that the levy was actually reimbursed within a short time; and (b) that all the costs of recovery, and in particular, the costs resulting from late payment of amounts which that authority owes to the site operator on that account, including costs incurred in order to avoid any financial penalty which might be imposed on the site operator, were passed on in the price to be paid by the authority to that operator. It was for the national court to ascertain whether those conditions had been satisfied. Caroline Gibney BL cgibney@lawlibrary.ie 13th April, 2010 European Environmental Law updates between February 23rd, 2010 and 13th April, 2010 Page 7 of 7