title: Commission Implementing Regulation (EU) 2020/1001 of 9 July 2020 laying down detailed rules for the application of Directive 2003/87/EC of the European Parliament and of the Council as regards the operation of the Modernisation Fund supporting investments to modernise the energy systems and to improve energy efficiency of certain Member States

text:
                  10.7.2020

                  EN

                  Official Journal of the European Union

                  L 221/107

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/1001
         of 9 July 2020
         laying down detailed rules for the application of Directive 2003/87/EC of the European Parliament and of the Council as regards the operation of the Modernisation Fund supporting investments to modernise the energy systems and to improve energy efficiency of certain Member States
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (1), and in particular Article 10d(12) thereof,
         Whereas:

                     (1)

                     Directive 2003/87/EC establishes the Modernisation Fund for the period from 2021 to 2030, to support investments in modernising energy systems and improving energy efficiency in certain Member States. As stated in the Communications from the Commission entitled ‘The European Green Deal’ (2) and ‘The European Green Deal Investment Plan’ (3), the implementation of the Modernisation Fund should contribute to the attainment of the objectives of the European Green Deal, by supporting green and socially just transition.

                     (2)

                     Detailed rules on the operation of the Modernisation Fund should be laid down to allow for smooth distribution of its financial resources to the beneficiary Member States, in particular by laying down procedures for submission and assessment of investment proposals and for disbursement of the Fund revenues.

                     (3)

                     In order to ensure the compatibility of the financing under the Modernisation Fund with the internal market, beneficiary Member States should notify the Commission, in accordance with Article 108(3) of the Treaty, of any planned investment constituting State aid within the meaning of Article 107(1) of the Treaty and that would not be covered by an existing approved or exempted aid scheme or an individual decision. The assessment of investments covered by the Fund should be coordinated with the State aid assessment, and the modalities of submission of investment proposals should take into account the modalities of submission of State aid notifications. The disbursement of the revenues from the Fund should depend on State aid clearance.

                     (4)

                     ‘The European Green Deal’ envisages territorial just transition plans as a cornerstone of the Just Transition Mechanism. When an investment under the Modernisation Fund aims at implementation of a territorial just transition plan of the beneficiary Member State, that Member State should provide information about the expected contribution of the investment to that plan, with a view of supporting coherence and complementarity with the objectives of the plan.

                     (5)

                     Beneficiary Member States should regularly inform the European Investment Bank (EIB) and the Investment Committee for the Modernisation Fund (‘Investment Committee’) of the planned investments to facilitate the planning of disbursement and management of the resources from the Modernisation Fund. However, that information should not bind the beneficiary Member States when submitting future investments proposals.

                     (6)

                     A simplified procedure for disbursement of the Fund revenues should apply to investments in the priority areas listed in Article 10d(2) of Directive 2003/87/EC (‘priority investments’). Non-priority investments should undergo a comprehensive assessment of their technical and financial viability and their added value to the Fund objectives.

                     (7)

                     Pursuant to Article 10d(2) of Directive 2003/87/EC, at least 70 % of the financial resources from the Modernisation Fund are to be allocated to priority investments. To ensure fair distribution of the financial resources across all beneficiary Member States, that requirement should apply to the individual share in the Fund of each beneficiary Member State.

                     (8)

                     The financing of investments from the Modernisation Fund should depend on the availability of the funds at disposal of the beneficiary Member State and the proportion of funds allocated to priority investments. In order to enable close monitoring of allocation of the funds, while ensuring efficiency of the disbursement process, the assessment of the investment proposals by the EIB or, as appropriate, by the Investment Committee, and disbursement of the funds by the Commission should be organised in biannual cycles.

                     (9)

                     The procedures for the operation of the Modernisation Fund should take into account the specificities of schemes submitted by the beneficiary Member States. Once the EIB confirms the scheme as a priority investment or, as appropriate, the Investment Committee recommends the financing of the scheme in the non-priority area, and once the Commission decides on the first disbursement of the funds for the scheme, the beneficiary Member State should submit a new proposal for any subsequent disbursement. For the purpose of any such subsequent disbursement, the confirmation by the EIB or, as appropriate, the recommendation by the Investment Committee should be limited to verification of the availability of the funds at disposal of the beneficiary Member State, and in respect of schemes that qualify as non-priority investments, verification of compliance with the thresholds for the permissible support specified in Article 10d(2) and the fourth sentence of the second subparagraph of Article 10d(6) of Directive 2003/87/EC. Furthermore, simplified rules should apply to the annual reporting on schemes by the beneficiary Member States.

                     (10)

                     Discontinued investments should not receive further financing from the Modernisation Fund. Any amounts already paid to discontinued investments but not yet consumed by such investments should be made available for the financing of other investments.

                     (11)

                     Detailed rules should be laid down regarding the composition and operation of the Investment Committee.

                     (12)

                     Pursuant to Article 10d(3) of Directive 2003/87/EC, the EIB is to manage the revenues from the Modernisation Fund. For this purpose, the EIB should develop asset management guidelines which support the objectives of the Directive and which take account of the internal rules of the EIB. In addition, the EIB is to carry out other tasks related to the implementation of the Modernisation Fund, as laid down in Directive 2003/87/EC. The specific terms and conditions for carrying out those tasks should be laid down in an agreement between the Commission and the EIB. The mechanism for the recovery of costs of the EIB should correspond with those tasks, and it should also take into account the number and complexity of investment proposals submitted by respective beneficiary Member States, and whether the proposals concern priority or non-priority investments.

                     (13)

                     Where Member States decide to use the revenues generated from the auctioning of allowances to finance their expenses related to implementation of the Modernisation Fund, such expenses could qualify as administrative expenses referred to in Article 10(3)(i) of Directive 2003/87/EC, and therefore they might count towards the 50 % objective of climate-related use of the auctioning revenues.

                     (14)

                     Clear monitoring and reporting arrangements should be laid down to provide the Commission with complete and timely information on the progress of particular investments and overall implementation of the Modernisation Fund.

                     (15)

                     The measures provided for in this Regulation are in accordance with the opinion of the Climate Change Committee,

               HAS ADOPTED THIS REGULATION:
         CHAPTER I

            GENERAL PROVISIONS

            Article 1
            Subject matter
            This Regulation lays down detailed rules on the operation of the Modernisation Fund as regards the following:

                        (a)

                        submission of proposals for financing of investments;

                        (b)

                        assessment of priority investments and non-priority investments;

                        (c)

                        management, disbursement and payment of the resources from the Modernisation Fund;

                        (d)

                        composition and operation of the Investment Committee for the Modernisation Fund (‘Investment Committee’);

                        (e)

                        monitoring, reporting, evaluation, and auditing;

                        (f)

                        information and transparency.

            Article 2
            Definitions
            For the purposes of this Regulation the following definitions apply:

                        (1)

                        ‘beneficiary Member State’ means a Member State listed in Annex IIb to Directive 2003/87/EC;

                        (2)

                        ‘non-priority investment’ means an investment that does not fall into any area listed in Article 10d(2) of Directive 2003/87/EC;

                        (3)

                        ‘non-priority small-scale project’ means a non-priority investment receiving State aid the total amount of which meets the criteria of the de minimis aid in accordance with Article 3 of Commission Regulation (EU) No 1407/2013 (4);

                        (4)

                        ‘priority investment’ means an investment that falls into at least one area listed in Article 10d(2) of Directive 2003/87/EC;

                        (5)

                        ‘scheme’ means an investment proposal which complies with the following criteria:

                                    (a)

                                    it comprises a consistent set of priorities coherent with the objectives of the Modernisation Fund, and because of the characteristics of the projects under the scheme, it can be qualified either as a priority or non-priority investment;

                                    (b)

                                    it has a duration of more than one year;

                                    (c)

                                    it has a national or regional scope; and

                                    (d)

                                    it aims to support more than one public or private person or entity responsible for initiating or initiating and implementing projects under the scheme.

         CHAPTER II

            FINANCING OF INVESTMENTS

            Article 3
            Overview of investments

               1.   By 30 November of each year, each beneficiary Member State shall provide the European Investment Bank (EIB) and the Investment Committee with an overview of investments in respect of which it intends to submit investment proposals in the next two calendar years, as well as updated information on investments covered by any previous overview.

               2.   In the overview referred to in paragraph 1, the beneficiary Member State shall provide the following information about each planned investment:

                           (a)

                           the name of the project proponent or the scheme managing authority;

                           (b)

                           the specific location of the investment or the geographical scope of the scheme;

                           (c)

                           an estimate of the total cost of the investment;

                           (d)

                           the investment field and a summary description of the investment;

                           (e)

                           the status of any State aid assessment concerning the investment, where applicable;

                           (f)

                           an estimate of the financing from the Modernisation Fund and an outline of the intended financing proposals.

               3.   The information included in the overview shall not be binding for the beneficiary Member State when submitting investment proposals in accordance with Article 4.

            Article 4
            Submission of investment proposals

               1.   Beneficiary Member States may submit investment proposals to the EIB and the Investment Committee at any time during a calendar year.
               When submitting investment proposals, beneficiary Member States shall provide information specified in Annex I.
               The beneficiary Member State shall indicate whether the proposal concerns a priority investment or a non-priority investment.

               2.   Where an investment concerns a scheme, beneficiary Member State shall submit a proposal in accordance with paragraph 1 and specify the amount requested as the first disbursement for the scheme.
               After the Commission has decided on the first disbursement to the scheme in accordance with Article 8(1), any subsequent disbursement shall require a separate proposal from the beneficiary Member State specifying the amount to be disbursed and containing the updated information about the scheme, as appropriate.

               3.   Where the beneficiary Member State submits several investment proposals to be assessed in the same biannual disbursement cycle, it shall indicate a priority order for assessment of priority investments and a priority order for assessment of non-priority investments. If the Member State fails to indicate a priority order, the EIB or, as appropriate, the Investment Committee shall assess the proposals according to the dates of their submission.

               4.   A proposal concerning a non-priority small-scale project may be submitted only as part of a scheme.

               5.   The beneficiary Member State shall not request the financing from the resources of the Modernisation Fund of any costs of the investment which are financed by another Union or national instrument.

            Article 5
            Available funds

               1.   Four weeks before the meeting of the Investment Committee referred to in Article 11(1), the EIB shall inform the beneficiary Member State, the Investment Committee and the Commission about the funds available to that Member State to finance investments from the Modernisation Fund (‘statement of the available funds’).

               2.   The statement of the available funds shall specify the following:

                           (a)

                           the amount held with the EIB, excluding any amounts already disbursed but not yet paid to the Member State in accordance with Article 9, and excluding any costs of the EIB specified in the agreement referred to in Article 12(3);

                           (b)

                           any amounts disbursed to discontinued investments which increase the resources in the Modernisation Fund available to the beneficiary Member State in accordance with Commission decision referred to in Article 10(2).

               3.   The closing date of the statement of the available funds shall be the last day of the calendar month preceding the date of transmission of information in accordance with paragraph 1.

               4.   Without prejudice to paragraphs 1 to 3, the beneficiary Member State may request from the EIB information about the amount earmarked for that Member State held with the EIB at any given point in time.

            Article 6
            Confirmation of priority investments

               1.   Investment proposals submitted by the beneficiary Member States as priority investments shall be assessed by the EIB in the first biannual disbursement cycle of the calendar year, if submitted at least six weeks before the first biannual meeting of the Investment Committee referred to in Article 11(1).
               If submitted later than six weeks before the first biannual meeting of the Investment Committee referred to in Article 11(1), but at least six weeks before the second biannual meeting of the Committee, they shall be assessed in the second biannual disbursement cycle of the calendar year.
               If submitted later than six weeks before the second biannual meeting of the Investment Committee referred to in Article 11(1), they shall be assessed in the first biannual disbursement cycle of the following calendar year.

               2.   The EIB may request from the beneficiary Member State any information or documents that it considers necessary to assess the investment, provided that such information or documents are required by Annex I. The EIB shall request the information or documents without undue delay. If the beneficiary Member State provides the requested information or documents less than six weeks before the meeting of the Investment Committee referred to in Article 11(1), the EIB may postpone the assessment of the proposal to the next biannual disbursement cycle.

               3.   If the EIB is of the opinion that the proposal concerns a non-priority investment, the EIB shall inform thereof the beneficiary Member State not later than within four weeks from submission of the proposal, and state the reasons for its conclusion. In that case, the proposal shall be assessed in accordance with the requirements and timelines specified in Article 7.

               4.   If the proposal does not comply with Article 10d(1) of Directive 2003/87/EC or the requirements of this Regulation, the EIB shall return the proposal to the beneficiary Member State not later than within four weeks from submission of the proposal, and state the reasons for its conclusion. The EIB shall forthwith inform the Investment Committee.

               5.   The assessment of the proposal shall include verification of the costs of the proposed investment, unless the proportionality of the amount of aid received has been verified by the Commission under the relevant State aid procedure.

               6.   The EIB shall assess the proposal respecting the applicable Union law.

               7.   The EIB may confirm the proposal as a priority investment provided that the following conditions are met:

                           (a)

                           the beneficiary Member State has demonstrated that the investment complies with the requirements laid down in Article 10d(1) of Directive 2003/87/EC and that it falls into at least one area listed in Article 10d(2) of that directive;

                           (b)

                           the beneficiary Member State has sufficient funds available according to the statement of the available funds referred to in Article 5(1) and after deduction of any amounts to be disbursed for investments already confirmed in accordance with paragraph 9 of this Article;

                           (c)

                           the beneficiary Member State has provided evidence that the investment proposal fulfils either of the following requirements:

                                       —

                                       obtained State aid clearance in accordance with the Commission decision,

                                       —

                                       is exempted from the State aid notification in accordance with Commission Regulation (EU) No 651/2014 (5),

                                       —

                                       does not constitute State aid within the meaning of Article 107(1) of the Treaty;

                           (d)

                           the beneficiary Member State has confirmed in writing that the investment complies with any other applicable requirements of Union and national law;

                           (e)

                           according to the information provided by the beneficiary Member State about contributions from other Union and national instruments, the amounts requested from the Modernisation Fund are not intended to cover the same costs of the investment as those financed by another Union or national instrument.

               8.   Where a proposal concerns a subsequent disbursement for a scheme confirmed by the EIB in accordance with paragraph 9 prior to the first disbursement, the assessment of the proposal by the EIB shall be limited to verification of the available funds in accordance with point (b) of paragraph 7, provided that there have been no changes to the scheme.

               9.   The EIB shall decide on confirmation of the proposal as a priority investment at the latest two weeks before the meeting of the Investment Committee referred to in Article 11(1).
               The EIB shall forthwith inform the beneficiary Member State concerned and the Commission about the decision referred to in the first subparagraph.

               10.   At the latest one week before the meeting of the Investment Committee referred to in Article 11(1), the EIB shall inform the Committee about the investment proposals of each beneficiary Member State confirmed as priority investments in accordance with paragraph 9 of this Article and the amount to be disbursed to each investment.

            Article 7
            Recommendations on non-priority investments

               1.   The investment proposals submitted by the beneficiary Member States as non-priority investments shall be assessed by the Investment Committee in the first biannual disbursement cycle of the calendar year, if submitted at least 10 weeks before the first biannual meeting of the Investment Committee referred to in Article 11(1).
               If submitted later than 10 weeks before the first biannual meeting of the Investment Committee referred to in Article 11(1), but at least 10 weeks before the second biannual meeting of the Committee, they shall be assessed in the second biannual disbursement cycle of the calendar year.
               If submitted later than 10 weeks before the second biannual meeting of the Investment Committee referred to in Article 11(1), they shall be assessed in the first biannual disbursement cycle of the following calendar year.

               2.   At the latest two weeks before the meeting of the Investment Committee referred to in Article 11(1), the EIB shall complete a technical and financial due diligence assessment of the proposal, including an assessment of the expected emission reductions.

               3.   The EIB may request from the beneficiary Member State any information or documents that it considers necessary to carry out the technical and financial due diligence assessment, provided that such information or documents are required by Annex I. The EIB shall request the information or documents without undue delay. If the beneficiary Member State provides the requested information or documents less than 10 weeks before the meeting of the Investment Committee referred to in Article 11(1), the EIB may postpone the completion of the due diligence assessment to the next biannual disbursement cycle.

               4.   The financial due diligence assessment by the EIB shall include verification of the costs of the proposed investment, unless the proportionality of the amount of aid received has been verified by the Commission under the relevant State aid procedure.

               5.   The EIB shall carry out the due diligence assessment respecting the applicable Union law.

               6.   The due diligence assessment by the EIB shall be accompanied by a statement of the EIB representative regarding the endorsement of the financing of the investment proposal. The EIB shall forthwith transmit the due diligence assessment to the Investment Committee.

               7.   The Investment Committee may issue a recommendation on financing the investment proposal provided that the following conditions are met:

                           (a)

                           the beneficiary Member State has demonstrated that the investment complies with the requirements laid down in Article 10d(1) of Directive 2003/87/EC;

                           (b)

                           the beneficiary Member State has sufficient funds available according to the statement of the available funds referred to in Article 5(1) and after deduction of any amounts to be disbursed according to information specified in Article 6(10) and on the basis of the recommendations already issued in accordance with paragraph 9 of this Article;

                           (c)

                           the share of the funds allocated to priority investments is at least 70 % of the total amount of funds used by the beneficiary Member State, including the following funds:

                                       —

                                       funds already disbursed for priority and non-priority investments,

                                       —

                                       funds still to be disbursed according to information specified in Article 6(10),

                                       —

                                       funds still to be disbursed in accordance with the recommendations already issued under paragraph 9,

                                       —

                                       funds requested for the investment proposal under the assessment;

                           (d)

                           the financing complies with the fourth sentence of the second subparagraph of Article 10d(6) of Directive 2003/87/EC;

                           (e)

                           the beneficiary Member State has provided evidence that the investment proposal fulfils any of the following requirements:

                                       —

                                       it has obtained State aid clearance in accordance with the Commission decision,

                                       —

                                       it is exempted from the State aid notification in accordance with Regulation (EU) No 651/2014,

                                       —

                                       it does not constitute State aid within the meaning of Article 107(1) of the Treaty;

                           (f)

                           the beneficiary Member State has confirmed in writing that the investment complies with any other applicable requirements of Union and national law;

                           (g)

                           according to the information provided by the beneficiary Member State about contributions from other Union and national instruments, the amounts requested from the Modernisation Fund are not intended to cover the same costs of the investment as those financed by another Union or national instrument.

               8.   Where a proposal concerns a subsequent disbursement for a scheme recommended for the financing by the Investment Committee in accordance with paragraph 9 prior to the first disbursement, the proposal shall not require carrying out of due diligence assessment by the EIB, and the assessment of the proposal by the Committee shall be limited to verification of compliance with the requirements specified in points (b), (c) and (d) of paragraph 7, provided that there have been no changes to the scheme.

               9.   The Investment Committee shall issue a recommendation on the investment proposal in the meeting referred to in Article 11(1), specifying the amount of the support from the Modernisation Fund, stating the reasons for its conclusion, and including any suggestions regarding appropriate financing instruments.

               10.   If the Investment Committee does not recommend financing the investment, it shall state the reasons for its conclusion. In such case, the investment shall not be supported from the Modernisation Fund. The concerned Member State may revise the investment proposal taking into consideration the findings of the Investment Committee and it may submit a new investment proposal in any subsequent biannual disbursement cycle.

            Article 8
            Disbursement decision of the Commission

               1.   After the meeting referred to in Article 11(1) of this Regulation, the Commission shall without undue delay adopt the decision referred to in Article 10d(3) of Directive 2003/87/EC specifying the amount of the resources from the Modernisation Fund to be disbursed to each investment confirmed as a priority investment by the EIB or recommended for the financing by the Investment Committee (‘disbursement decision’).
               A decision concerning a disbursement of the resources from the Modernisation Fund to a scheme shall specify the amount of the first or any subsequent disbursement, as appropriate.

               2.   The Commission shall notify the disbursement decision to the beneficiary Member States concerned, and it shall inform thereof the EIB and the Investment Committee.

            Article 9
            Payments
            Within 30 days of the date of the disbursement decision, the EIB shall transmit to the beneficiary Member State the relevant amount of the Modernisation Fund support.

            Article 10
            Discontinued investments

               1.   Subject to the documentary evidence provided by the beneficiary Member State in the annual report referred to in Article 13, an investment shall be deemed discontinued in either of the following cases:

                           (a)

                           the project proponent or the scheme managing authority has not financed the investment for the period exceeding two consecutive years;

                           (b)

                           the project proponent has not spent the total amount of the revenues from the Modernisation Fund disbursed to the investment within five years from the date of the relevant disbursement decision of the Commission.

                     Point (b) shall not apply to schemes.

               2.   By the decision adopted in accordance with Article 8, the Commission shall modify the amount already disbursed for the discontinued investment by deducting any amount not yet paid by the beneficiary Member State to the project proponent or the scheme managing authority. Any such unpaid amount shall increase the resources in the Modernisation Fund available to the concerned Member State in accordance with Article 5(2)(b), and it shall be set off against any future payment by the EIB to the Member State concerned under Article 9.

               3.   Without prejudice to paragraph 1 of this Article, prior to the closing date of the statement of the available funds referred to in Article 5(3), the beneficiary Member State may inform the Commission about a discontinued investment and request a modification of the disbursement decision in accordance with paragraph 2 of this Article. This request may concern the amounts not yet paid to the project proponent or the scheme managing authority and the amounts already paid to the project proponent or the scheme managing authority, but subsequently recovered by the beneficiary Member State. The beneficiary Member State shall provide the relevant documentary evidence justifying the request. Paragraph 2 of this Article shall apply to modification of the disbursement decision, the increase of the resources in the Modernisation Fund available to the concerned Member State, and the setting off of the amount returned to the Fund against any future payment by the EIB to the Member State.

            Article 11
            Operation of the Investment Committee

               1.   The Investment Committee shall meet twice a year, at the latest by 15 July and 15 December. The secretariat of the Investment Committee shall communicate the date of the meeting to the Member States as soon as that date becomes available.

               2.   Unless the Committee issues a recommendation in accordance with the first and second sentence of the second subparagraph of Article 10d(7) of Directive 2003/87/EC, it shall be quorate if at least half of the representatives of the beneficiary Member States, all representatives of the non-beneficiary Member States and the representatives of the Commission and of the EIB are present.

               3.   The non-beneficiary Member States shall elect three representatives in the Investment Committee in a vote comprising all candidates. Each non-beneficiary Member State may propose one candidate. The three candidates who received the largest numbers of votes shall be elected. If two or more candidates obtained the same number of votes and as a result, more than three candidates would be elected, the vote shall be resumed, comprising all candidates, except for the candidate(s) who received the highest number of votes, and if appropriate, the second highest number of votes.

               4.   The members of the Investment Committee may not have financial or other interests in industries which qualify for the Modernisation Fund support, whether direct or indirect, which could affect their impartiality or may objectively be perceived as such. They shall act in the public interest and in an independent manner. They shall make a declaration of interests prior to taking up function in the Investment Committee, and they shall update their declarations whenever a relevant change occurs.

               5.   The EIB shall provide administrative and logistic support to the Investment Committee (the secretariat), including support with the administration of a website dedicated to the Modernisation Fund.

               6.   On a proposal from the competent Commission department, the Investment Committee shall establish its rules of procedure which shall, in particular, lay down procedures for the following:

                           (a)

                           appointment of members and observers to the Investment Committee, and their alternates;

                           (b)

                           organisation of the meetings of the Investment Committee;

                           (c)

                           detailed rules regarding conflict of interest, including the model declaration of interests.

               7.   Members of the Investment Committee shall not receive any remuneration or reimbursement of costs for their participation in the activities of the Committee.

            Article 12
            Asset management guidelines and agreement with the EIB

               1.   The EIB shall develop asset management guidelines to manage the revenues from the Modernisation Fund, taking into account the objectives of Directive 2003/87/EC and the internal rules of the EIB.

               2.   After consulting the Member States, the Commission shall enter into an agreement with the EIB laying down the specific terms and conditions under which the EIB shall perform its tasks in relation to implementation of the Modernisation Fund. Those terms and conditions shall cover the following tasks:

                           (a)

                           auctioning and monetisation of the allowances destined for the Modernisation Fund, in accordance with Commission Regulation (EU) No 1031/2010 (6);

                           (b)

                           management of the revenues from the Modernisation Fund;

                           (c)

                           confirmation of the priority investment proposals under Article 6 and carrying out due-diligence of non-priority investment proposals under Article 7;

                           (d)

                           providing the secretariat to the Investment Committee, including administration of a website dedicated to the Modernisation Fund;

                           (e)

                           preparation of draft reports of the Investment Committee under Article 14.

               3.   The agreement referred to in paragraph 2 shall specify the mechanism for the recovery of the costs of the EIB for the performance of its tasks. The costs recovery mechanism related to confirmation of priority investments and carrying out of due diligence of non-priority investments shall take into account the number and complexity of proposals submitted by each beneficiary Member State. The costs of the EIB for the performance of its tasks shall be financed from the funds available to each beneficiary Member State as referred to in Article 5(2)(a). The EIB shall report to the Commission and to the Member States on the completion of the tasks under the agreement and the related costs.

         CHAPTER III

            MONITORING, REPORTING, EVALUATION AND AUDITING

            Article 13

                  Monitoring and reporting by the beneficiary Member States

               1.   Beneficiary Member States shall monitor implementation of investments financed from the Modernisation Fund. By 30 April, beneficiary Member States shall submit to the Commission an annual report for the preceding year containing information specified in Annex II.

               2.   The annual report referred to in paragraph 1 shall be accompanied by the following information:

                           (a)

                           documentary evidence of the financing of investments from the Modernisation Fund in the preceding year;

                           (b)

                           the annual financial statement in respect of each investment, or in the case of a scheme, the financial statement providing for aggregated data on expenditures to the scheme in the preceding year.

            Article 14
            Reporting by the Investment Committee

               1.   The annual report of the Investment Committee referred to in the first sentence of Article 10d(11) of Directive 2003/87/EC shall include the following information:

                           (a)

                           the number of investment proposals received, including the specification of the investment area;

                           (b)

                           the number of recommendations issued and summary conclusions of each recommendation;

                           (c)

                           an overview of the main conclusions regarding the proposed investments following from the technical and financial due diligence carried out by the EIB;

                           (d)

                           the practical experience on procedural aspects of issuing the recommendations.

               2.   On the basis of a draft prepared by the EIB, the Investment Committee shall adopt the final report for the preceding year by 15 March, and it shall forthwith submit it to the Commission.

            Article 15
            Review and evaluation of the Fund

               1.   In the review referred to in the second sentence of Article 10d(11) of Directive 2003/87/EC, the Commission shall cover the following areas:

                           (a)

                           confirmation of priority investments by the EIB;

                           (b)

                           assessment of non-priority investments by the Investment Committee;

                           (c)

                           financing and monitoring of investments by the beneficiary Member States;

                           (d)

                           any relevant procedural aspects regarding the implementation of the Modernisation Fund.

                     Based on the results of the review, the Commission shall, where appropriate, make the relevant proposals.

               2.   At the end of the implementation of the Modernisation Fund, the Commission shall carry out a final evaluation of the implementation of the Modernisation Fund. In particular, the Commission shall evaluate the progresses towards the achievement of the Fund objectives as laid down in paragraphs 1, 2 and 3 of Article 10d of Directive 2003/87/EC.

               3.   The Commission shall make the results of the review and evaluation publicly available.

            Article 16
            Audits and protection of the financial interests of the Fund

               1.   The EIB shall prepare annual accounts of the Modernisation Fund for each financial year, which shall run from 1 January to 31 December, taking into account the financial statements provided pursuant to Article 13(2)(b). Those accounts shall be subject to an independent external audit.

               2.   The EIB shall submit to the Commission the following statements:

                           (a)

                           by 31 March, the unaudited financial statements of the Modernisation Fund covering the preceding financial year;

                           (b)

                           by 30 April, the audited financial statements of the Modernisation Fund covering the preceding financial year.

               3.   The accounts and financial statements referred to in paragraphs 1 and 2 shall be drawn up in compliance with the International Public Sector Accounting Standards (IPSAS).

               4.   The beneficiary Member States shall have the power to audit, on the basis of documents and on-the-spot checks, over all project proponents and scheme managing authorities, contractors and subcontractors to whom they provided support from the Modernisation Fund.

               5.   For the purpose of paragraphs 1 and 2, beneficiary Member States, project proponents and scheme managing authorities, contractors and subcontractors who have received the resources from the Modernisation Fund shall keep available, for a period of five years following the last payment in respect of any project or scheme, all supporting documents and information regarding the payment or expenditure made.

               6.   Beneficiary Member States shall take appropriate measures to ensure that, where activities financed under this Regulation are implemented, the financial interests of the Modernisation Fund are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and, if irregularities are detected, by the recovery of the amounts unduly paid and, where appropriate, by effective, proportionate and dissuasive administrative and financial penalties. Recoveries shall be implemented in accordance with the legislation of the beneficiary Member States.
               For any amounts recovered, the beneficiary Member State shall request a modification of a disbursement decision in accordance with Article 10(3).

         CHAPTER IV

            FINAL PROVISIONS

            Article 17
            Information, communication and publicity

               1.   The beneficiary Member States shall make publicly available on the websites of the relevant departments of their administrations information on the investments supported under this Regulation, in order to inform the public of the role and objectives of the Modernisation Fund. Such information shall include an explicit reference to the Modernisation Fund support received.

               2.   The beneficiary Member States shall ensure that the final recipients of the Modernisation Fund support provide coherent, relevant and targeted information on the Modernisation Fund support received to multiple audiences, including the media and the public.

               3.   The Modernisation Fund name shall be used for all communication activities and appear on notice boards at strategic places visible to the public.

               4.   The beneficiary Member States and the Commission shall perform information, communication and promotion actions relating to the Modernisation Fund support and results. Such actions shall facilitate exchanges of experience, knowledge and best practices as regards the design, preparation and implementation of investments under the Modernisation Fund.

            Article 18
            Transparency

               1.   Without prejudice to paragraph 2, the secretariat of the Investment Committee shall arrange for the publication on the Modernisation Fund website of the following information:

                           (a)

                           the names of the members and observers to the Investment Committee, and their affiliation;

                           (b)

                           the curricula vitae and the declarations of interest of the members of the Investment Committee;

                           (c)

                           the confirmations of the EIB concerning priority investments;

                           (d)

                           the recommendations of the Investment Committee concerning non-priority investments;

                           (e)

                           the disbursement decisions of the Commission;

                           (f)

                           the annual reports submitted by the beneficiary Member States under Article 13;

                           (g)

                           the annual reports submitted by the Investment Committee under Article 14;

                           (h)

                           the Commission’s review and evaluation of the Modernisation Fund under Article 15.

               2.   Member States, the Commission and the EIB shall not disclose any commercially confidential information included in any document, information or other material submitted by them or by any third party in connection with implementation of the Modernisation Fund.

            Article 19
            Entry into force
            This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 9 July 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 275, 25.10.2003, p. 32.

            (2)  Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions ‘The European Green Deal’, COM(2019) 640 final of 11 December 2019.

            (3)  Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions ‘The European Green Deal Investment Plan’, COM(2020) 21 final of 14 January 2020.

            (4)  Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L 352, 24.12.2013, p. 1).

            (5)  Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1).

            (6)  Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community (OJ L 302, 18.11.2010, p. 1).

            ANNEX I

               Information about investment proposal to be submitted to the EIB and to the Investment Committee

            1.   All investment proposals

                        1.1.

                        specification of the investment area in accordance with Article 10d(1) or (2) of Directive 2003/87/EC, as appropriate;

                        1.2.

                        general description of the investment, including the objectives and targeted beneficiary(ies), technology (if relevant), capacity (if relevant), and estimated duration of the investment;

                        1.3.

                        justification for the Modernisation Fund support, including the confirmation of the compliance of an investment with Article 10d(1) of Directive 2003/87/EC;

                        1.4.

                        specification of costs to be covered from the Modernisation Fund;

                        1.5.

                        description of the support instrument(s) used;

                        1.6.

                        requested amount of the financing from the Modernisation Fund;

                        1.7.

                        contribution(s) from other Union and national instruments;

                        1.8.

                        existence of State aid (within the meaning of Article 107(1) of the Treaty), and indication of the following, as applicable:

                                    (a)

                                    reference to the Commission decision clearing national aid measure;

                                    (b)

                                    reference under which the block-exempted measure has been registered (State aid number attributed by the Commission’s electronic notification system referred to in Article 11 of Regulation (EU) No 651/2014);

                                    (c)

                                    expected date for notification of the aid measure to the Commission;

                        1.9.

                        Member State’s declaration of compliance with the applicable Union and national laws;

                        1.10.

                        when the investment aims at implementation of a territorial just transition plan, information about the expected contribution of the investment to that plan.

                  2.   Additional information about schemes

                        2.1.

                        name of the managing authority;

                        2.2.

                        indication whether the proposal concerns an existing scheme;

                        2.3.

                        total volume of the scheme.

                  3.   Additional information about proposals other than schemes

                        3.1.

                        name of the project proponent;

                        3.2.

                        location of the project;

                        3.3.

                        total investment costs;

                        3.4.

                        development stage of the project (from feasibility to operation);

                        3.5.

                        list of mandatory permits obtained or to be obtained.

                  4.   Additional information about non-priority proposals

                        4.1.

                        quantitative data on the construction and operation phases, including proposal’s contribution to the objectives of the Modernisation Fund, the Union’s 2030 climate and energy policy framework and the Paris Agreement;

                        4.2.

                        certified financial forecast, including intended financial contribution from private sources;

                        4.3.

                        description of any other targeted performance indicator, as requested by the EIB;

                        4.4.

                        other relevant information related to the project proponent, the investment, the general market conditions and environmental issues.

            ANNEX II

               Information to be provided by the beneficiary Member State in the annual report to the Commission

            1.   Overview of investments

                        1.1.

                        number of investments financed from the Modernisation Fund to date;

                        1.2.

                        number of on-going, completed and discontinued investments;

                        1.3.

                        overall ratio of the financing provided to priority investments against non-priority investments, if any, in the beneficiary Member State.

                  2.   Information on each investment

                        2.1.

                        total investment triggered (total investment costs);

                        2.2.

                        dates and amounts of payments from the Modernisation Fund to the project proponent or the scheme managing authority;

                        2.3.

                        amounts received from the Modernisation Fund by the beneficiary Member State but not yet paid to the project proponent or the scheme managing authority;

                        2.4.

                        any amounts recovered by the beneficiary Member State from the project proponent or the scheme managing authority, and the dates of recovery;

                        2.5.

                        an assessment of the added value of the investment in terms of energy efficiency and modernisation of the energy system, including information on the following:

                                    (a)

                                    the energy saved in MWh;

                                    (b)

                                    expected cumulative MWh saved by the end of the investment lifetime;

                                    (c)

                                    the greenhouse gas emissions saved in tCO2;

                                    (d)

                                    expected cumulative tCO2 saved by the end of the investment lifetime;

                                    (e)

                                    the additional renewable energy capacity installed, if applicable;

                                    (f)

                                    achieved leverage of funds (total amount invested in relation to the contribution from the Modernisation Fund);

                        2.6.

                        when the investment aims at implementation of a territorial just transition plan, information about the expected contribution of the investment to that plan.

                        2.7.

                        for schemes, the reporting data specified shall be presented in aggregated form.

                  3.   Additional information about investments other than schemes

                        3.1.

                        milestones achieved since the previous annual report;

                        3.2.

                        expected entry into operation;

                        3.3.

                        identified or expected delays in implementation;

                        3.4.

                        identified or expected changes in eligible costs, technology applied or results of an investment.

                  4.   Additional information about non-priority investment

                        4.1.

                        confirmation of co-financing from private sources.


                  10.7.2020

                  EN

                  Official Journal of the European Union

                  L 221/122

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/1002
         of 9 July 2020
         establishing a derogation from Implementing Regulation (EU) 2019/2072 as regards the requirements for introduction into the Union of ash wood originating or processed in the United States
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to Regulation (EU) 2016/2031 of the European Parliament and the Council of 26 October 2016 on protective measures against pests of plants, amending Regulations (EU) No 228/2013, (EU) No 652/2014 and (EU) No 1143/2014 of the European Parliament and of the Council and repealing Council Directives 69/464/EEC, 74/647/EEC, 93/85/EEC, 98/57/EC, 2000/29/EC, 2006/91/EC and 2007/33/EC (1), and in particular Article 41(2) thereof,
         Whereas:

                     (1)

                     Commission Implementing Decision (EU) 2018/1203 (2) authorises Member States to provide for a temporary derogation from certain provisions of Council Directive 2000/29/EC (3) in respect of special requirements concerning the introduction into the Union of ash (Fraxinus L.) wood originating or processed in the United States.

                     (2)

                     Directive 2000/29/EC has been repealed and replaced by Regulation (EU) 2016/2031. Commission Implementing Regulation (EU) 2019/2072 (4) setting out rules and requirements concerning the introduction into the Union of certain plants, plant products or other objects has replaced Annexes I to V to that Directive.

                     (3)

                     Pursuant to Article 8(1) of Regulation (EU) 2019/2072 in conjunction with point 87 of Annex VII to that Regulation, the introduction into the Union of ash wood originating or processed in the United States (‘the specified wood’) is subject to certain special requirements to avoid the risk of infestation into the Union by the pest Agrilus planipennis Fairmaire. Those requirements differ to a certain extent from the requirements set out in Implementing Decision (EU) 2018/1203, as regards the introduction into the Union of the specified wood, its inspection and supervision.

                     (4)

                     On the basis of recent Commission audits carried out in 2018 and 2019, it has been concluded that by applying under its official control the requirements laid down in Implementing Decision (EU) 2018/1203, the United States ensures a level of phytosanitary protection which is equivalent to that provided by the requirements set out in points 87(a) and (b) of Annex VII to Regulation (EU) 2019/2072.

                     (5)

                     Implementing Decision (EU) 2018/1203 is to apply until 30 of June 2020. On 16 January 2020, the United States has requested a prolongation of that derogation after 30 June 2020.

                     (6)

                     In order to guarantee the continuing imports of ash wood originating or processed in the United States, it is appropriate to provide for a derogation from Article 8(1) and points 87(a) and (b) of Annex VII to Implementing Regulation (EU) 2019/2072 so as to allow the introduction of the specified wood into the Union subject to compliance with special requirements reflecting, with a few adaptations, those set out in Implementing Decision (EU) 2018/1203.

                     (7)

                     This Regulation should apply from 1 July 2020, in order to ensure the continuation of imports of the specified wood.

                     (8)

                     This Regulation should apply until 30 June 2023, in order to allow for the review of its application by that date.

                     (9)

                     The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Special requirements for a temporary derogation
            By way of derogation from Article 8(1) and points 87(a) and (b) of Annex VII to Implementing Regulation (EU) 2019/2072, the introduction into the Union of ash (Fraxinus L.) wood originating or processed in the United States (‘the specified wood’) shall be subject to compliance with the requirements set out in Article 2 and the Annex to this Regulation.

            Article 2
            Phytosanitary certificate

               1.   The specified wood shall be accompanied by a phytosanitary certificate issued in the United States, certifying freedom from Union quarantine pests and pests not listed as Union quarantine pests, subject to the measures adopted pursuant to Article 30 of Regulation (EU) 2016/2031 after inspection.

               2.   The phytosanitary certificate shall include under the heading ‘Additional declaration’ the following elements:

                           (a)

                           the statement ‘In accordance with European Union requirements laid down in Commission Implementing Regulation (EU) 2020/1002 (*)

                                       (*)

                                       Commission Implementing Regulation (EU) 2020/1002 of 9 July 2020 establishing a derogation from Implementing Regulation (EU) 2019/2072 as regards the requirements for introduction into the Union of ash wood originating or processed in the United States (OJ L 221, 10.7.2020, p. 122)’;

                           (b)

                           the bundle number(s) corresponding to each specific bundle being exported;

                           (c)

                           the name of the approved facility(ies) in the United States.

            Article 3
            Date of expiry
            This Regulation shall expire on 30 June 2023.

            Article 4
            Entry into force and date of application
            This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
            It shall apply from 1 July 2020.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 9 July 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 317, 23.11.2016, p. 4.

            (2)  Commission Implementing Decision (EU) 2018/1203 of 21 August 2018 authorising Member States to provide for a temporary derogation from certain provisions of Council Directive 2000/29/EC in respect of ash wood originating or processed in the United States of America and repealing Commission Implementing Decision (EU) 2017/204 (OJ L 217, 27.8.2018, p. 7).

            (3)  Council Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community (OJ L 169, 10.7.2000, p. 1).

            (4)  Commission Implementing Regulation (EU) 2019/2072 of 28 November 2019 establishing uniform conditions for the implementation of Regulation (EU) 2016/2031 of the European Parliament and the Council, as regards protective measures against pests of plants, and repealing Commission Regulation (EC) No 690/2008 and amending Commission Implementing Regulation (EU) 2018/2019 (OJ L 319, 10.12.2019, p. 1).

            ANNEX

               Part A

            1.   Processing requirements

            The processing of the specified wood, as referred to in Article 1, must fulfil all of the following requirements:

                        (a)

                        Debarking
                        The specified wood is debarked, with the exception of any number of visually separate and clearly distinct small pieces of bark which comply with one of the following requirements:

                                    (1)

                                    they are less than 3 cm in width (regardless of length) or

                                    (2)

                                    if they are greater than 3 cm in width, the total surface area of each individual piece of bark is less than 50 cm2.

                        (b)

                        Sawing
                        The specified sawn wood is produced from debarked round wood.

                        (c)

                        Heat treatment
                        The specified wood is heated through its profile to at least 71 °C for 1 200 minutes in a heat chamber approved by the Animal and Plant Health Inspection Service (APHIS), or an agency approved by APHIS.

                        (d)

                        Drying
                        The specified wood is dried following industrial drying schedules of at least two-week duration, recognised by APHIS.
                        The final moisture content of the wood shall not exceed 10 % expressed as a percentage of dry matter.

                  2.   Requirements for facilities

            The specified wood must be produced, handled or stored in a facility which fulfils all the following requirements:

                        (a)

                        it is officially approved by APHIS, or an agency approved by APHIS, pursuant to its certification programme concerning the pest Agrilus planipennis Fairmaire;

                        (b)

                        it is registered in a database published on the APHIS website;

                        (c)

                        it is audited by APHIS, or an agency approved by APHIS, at least once per month and it has been concluded that it complies with the requirements of this Annex. In the case these audits are performed by an agency approved by APHIS, APHIS must carry out six-monthly audits of this work. The six-monthly audits shall include the verification of the procedures and documentation of the agency and audits at approved facilities;

                        (d)

                        it uses equipment for the treatment of the specified wood which has been calibrated consistently with the equipment’s manual of operation;

                        (e)

                        it keeps records of its procedures for verification by APHIS or an agency approved by APHIS, including the duration of treatment, temperatures during treatment and, for each specific bundle to be exported, the compliance check and final moisture content.

                  3.   Labelling

            Each bundle of the specified wood must visibly display both a unique bundle number and a label with the words ‘HT-KD’ or ‘Heat Treated-Kiln Dried’. That label must be issued by, or under the supervision of, a designated officer of the approved facility after verifying that the processing requirements set out in point 1 and the requirements for facilities set out in point 2 have been complied with.
            4.   Pre-export inspections

            The specified wood destined for the Union must be inspected before export by APHIS, or an agency approved by APHIS, to ensure that the requirements laid down in points 1 and 3 are met.

               Part B

               Specified wood with their respective CN codes

                        1.

                        Wood of Fraxinus L., other than in the form of

                                    —

                                    chips, particles, sawdust, shavings, wood waste and scrap, obtained in whole or part from these trees,

                                    —

                                    wood packaging material, in the form of packing cases, boxes, crates, drums and similar packings, pallets, box pallets and other load boards, pallet collars, dunnage, whether or not actually in use in the transport of objects of all kinds, except dunnage supporting consignments of wood, which is constructed from wood of the same type and quality as the wood in the consignment and which meets the same Union phytosanitary requirements as the wood in the consignment,

                              but including wood which has not kept its natural round surface, and furniture and other objects made of untreated wood

                        ex 4401 12 00
                        ex 4403 12 00
                        ex 4403 99 00
                        ex 4404 20 00
                        ex 4406 12 00
                        ex 4406 92 00
                        4407 95 10
                        4407 95 91
                        4407 95 99
                        ex 4407 99 27
                        ex 4407 99 40
                        ex 4407 99 90
                        ex 4416 00 00
                        ex 9406 10 00


title: Commission Implementing Regulation (EU) 2020/1003 of 9 July 2020 renewing the approval of the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 as low-risk substances in accordance with Regulation (EC) No 1107/2009 of the European Parliament and of the Council concerning the placing of plant protection products on the market, and amending the Annex to Commission Implementing Regulation (EU) No 540/2011 (Text with EEA relevance)

text:
                  10.7.2020

                  EN

                  Official Journal of the European Union

                  L 221/127

         COMMISSION IMPLEMENTING REGULATION (EU) 2020/1003
         of 9 July 2020
         renewing the approval of the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 as low-risk substances in accordance with Regulation (EC) No 1107/2009 of the European Parliament and of the Council concerning the placing of plant protection products on the market, and amending the Annex to Commission Implementing Regulation (EU) No 540/2011
         (Text with EEA relevance)
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to Regulation (EC) No 1107/2009, of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (1), and in particular Article 20(1) thereof,
         Whereas:

                     (1)

                     Commission Directive 2008/113/EC (2) included Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 as active substances in Annex I to Council Directive 91/414/EEC (3).

                     (2)

                     Active substances included in Annex I to Directive 91/414/EEC are deemed to have been approved under Regulation (EC) No 1107/2009 and are listed in Part A of the Annex to Commission Implementing Regulation (EU) No 540/2011 (4).

                     (3)

                     The approval of the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3, as set out in Part A of the Annex to Implementing Regulation (EU) No 540/2011 expires on 30 April 2021.

                     (4)

                     An application for the renewal of the approval of the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 was submitted in accordance with Article 1 of Commission Implementing Regulation (EU) No 844/2012 (5) within the time period provided for in that Article.

                     (5)

                     The applicant submitted the supplementary dossiers required in accordance with Article 6 of Implementing Regulation (EU) No 844/2012. The application was found to be complete by the rapporteur Member State.

                     (6)

                     The rapporteur Member State prepared a renewal assessment report in consultation with the co-rapporteur Member State and submitted it to the European Food Safety Authority (‘the Authority’) and the Commission on 28 September 2018.

                     (7)

                     The Authority made the supplementary summary dossier available to the public. The Authority also circulated the renewal assessment report to the applicants and to the Member States for comments and launched a public consultation on it. The Authority forwarded the comments received to the Commission.

                     (8)

                     On 18 September 2019, the Authority communicated to the Commission its conclusion (6) on whether Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 can be expected to meet the approval criteria provided for in Article 4 of Regulation (EC) No 1107/2009. The Commission presented an initial renewal report and the draft Regulation regarding Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 to the Standing Committee on Plants, Animals, Food and Feed in March 2020.

                     (9)

                     The Commission invited the applicant to submit its comments on the conclusion of the Authority and, in accordance with the third paragraph of Article 14(1) of Implementing Regulation (EU) No 844/2012, on the renewal report. The applicant submitted its comments, which have been carefully examined.

                     (10)

                     It has been established with respect to one or more representative uses of at least one plant protection product containing the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 or FOC PG 410.3 that the approval criteria provided for in Article 4 of Regulation (EC) No 1107/2009 are satisfied.

                     (11)

                     The risk assessment for the renewal of the approval of the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 is based on a limited number of representative uses, which however do not restrict the uses for which plant protection products containing Phlebiopsis gigantea strains VRA 1835, VRA 1984 or FOC PG 410.3 may be authorised. It is therefore appropriate not to maintain the restriction to use as a fungicide only.

                     (12)

                     The Commission further considers that Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 are low-risk active substances pursuant to Article 22 of Regulation (EC) No 1107/2009. Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 are not substances of concern and fulfil the conditions set in Annex II point 5 to Regulation (EC) No 1107/2009. Following the assessment by the Rapporteur Member State and the Authority, and taking into account the intended uses, Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 are microorganisms for which it is expected a low-risk for humans, animals and the environment. No critical areas of concern were identified, and Phlebiopsis gigantea is not known to be related to any human or animal pathogen. Phlebiopsis gigantea has been used as a biocontrol agent for over a decade without leading to any adverse effect on humans since the previous peer review, and based on the intended use (i.e. direct application onto stump surface of coniferous trees) the potential exposure for humans and effects on the naturally occurring soil-concentration are considered negligible. For these reasons only general mitigation measures are foreseen for workers, and overall the approval criteria and qualification as low-risk are met for these active substances.

                     (13)

                     It is therefore appropriate to renew the approval of Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 as low-risk substances.

                     (14)

                     In accordance with Article 20(3) of Regulation (EC) No 1107/2009, in conjunction with Article 13(4) thereof, the Annex to Implementing Regulation (EU) No 540/2011 should therefore be amended accordingly.

                     (15)

                     Commission Implementing Regulation (EU) 2020/421 (7) extended the approval period of Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3 to 30 April 2021 in order to allow the renewal process to be completed before the expiry of the approval period of those active substances. Given that a decision on renewal is being taken ahead of the expiry of that extended approval period, this Regulation should apply from 1 September 2020.

                     (16)

                     The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Renewal of the approval of the active substance
            The approval of the active substances Phlebiopsis gigantea strains VRA 1835, VRA 1984 and FOC PG 410.3, as specified in Annex I, is renewed subject to the conditions laid down in that Annex.

            Article 2
            Amendments to Implementing Regulation (EU) No 540/2011
            The Annex to Implementing Regulation (EU) No 540/2011 is amended in accordance with Annex II to this Regulation.

            Article 3
            Entry into force and date of application
            This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
            It shall apply from 1 September 2020.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 9 July 2020.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 309, 24.11.2009, p. 1.

            (2)  Commission Directive 2008/113/EC of 8 December 2008 amending Council Directive 91/414/EEC to include several micro-organisms as active substances (OJ L 330, 9.12.2008, p. 6).

            (3)  Council Directive 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the market (OJ L 230, 19.8.1991, p. 1).

            (4)  Commission Implementing Regulation (EU) No 540/2011 of 25 May 2011 implementing Regulation (EC) No 1107/2009 of the European Parliament and of the Council as regards the list of approved active substances (OJ L 153, 11.6.2011, p. 1).

            (5)  Commission Implementing Regulation (EU) No 844/2012 of 18 September 2012 setting out the provisions necessary for the implementation of the renewal procedure for active substances, as provided for in Regulation (EC) No 1107/2009 of the European Parliament and of the Council concerning the placing of plant protection products on the market (OJ L 252, 19.9.2012, p. 26).

            (6)  EFSA Journal 17(10):5820, doi: 10.2903/j.efsa.2019.5820. Available online: www.efsa.europa.eu

            (7)  Commission Implementing Regulation (EU) 2020/421 of 18 March 2020 amending Implementing Regulation (EU) No 540/2011 as regards the extension of the approval periods of the active substances abamectin, Bacillus subtilis (Cohn 1872) strain QST 713, Bacillus thuringiensis subsp. Aizawai strains ABTS-1857 and GC-91, Bacillus thuringiensis subsp. Israeliensis (serotype H-14) strain AM65-52, Bacillus thuringiensis subsp. Kurstaki strains ABTS 351, PB 54, SA 11, SA12 and EG 2348, Beauveria bassiana strains ATCC 74040 and GHA, clodinafop, clopyralid, Cydia pomonella Granulovirus (CpGV), cyprodinil, dichlorprop-P, fenpyroximate, fosetyl, Lecanicillium muscarium (formerly ‘Verticillium lecani
            i’) strain Ve6, mepanipyrim, Metarhizium anisopliae (var. anisopliae) strain BIPESCO 5/F52, metconazole, metrafenone, Phlebiopsis gigantea strains FOC PG 410.3, VRA 1835 and VRA 1984, pirimicarb, Pseudomonas chlororaphis strain MA342, pyrimethanil, Pythium oligandrum M1, rimsulfuron, spinosad, Streptomyces K61 (formerly ‘S. griseoviridi
            s’), Trichoderma asperellum (formerly ‘T. harzianu
            m’) strains ICC012, T25 and TV1, Trichoderma atroviride (formerly ‘T. harzianu
            m’) strains IMI 206040 and T11, Trichoderma gamsii (formerly ‘T. virid
            e’) strain ICC080, Trichoderma harzianum strains T-22 and ITEM 908, triclopyr, trinexapac, triticonazole and ziram (OJ L 84, 20.3.2020, p. 7).

            ANNEX I

                        Common Name,
                        Identification Numbers

                        IUPAC Name

                        Purity (1)

                        Date of approval

                        Expiration of approval

                        Specific provisions

                           Phlebiopsis gigantea strain VRA 1835

                        Not applicable

                        No relevant impurities

                        1 September 2020

                        31 August 2035

                        For the implementation of the uniform principles, as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the renewal report on Phlebiopsis gigantea strain VRA 1835, and in particular Appendices I and II thereto, shall be taken into account.
                        Member States shall pay particular attention to the protection of operators and workers.
                        Producers shall ensure strict maintenance of environmental conditions and quality control analysis during the manufacturing process as laid down in Working Document SANCO/12116/2012 as regards the limits on microbiological contamination (2).

                           Phlebiopsis gigantea strain VRA 1984

                        Not applicable

                        No relevant impurities

                        1 September 2020

                        31 August 2035

                        For the implementation of the uniform principles, as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the renewal report on Phlebiopsis gigantea strain VRA 1984, and in particular Appendices I and II thereto, shall be taken into account.
                        Member States shall pay particular attention to the protection of operators and workers.
                        Producers shall ensure strict maintenance of environmental conditions and quality control analysis during the manufacturing process as laid down in Working Document SANCO/12116/2012 as regards the limits on microbiological contamination.

                           Phlebiopsis gigantea strain FOC PG 410.3

                        Not applicable

                        No relevant impurities

                        1 September 2020

                        31 August 2035

                        For the implementation of the uniform principles, as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the renewal report on Phlebiopsis gigantea strain FOC PG 410.3, and in particular Appendices I and II thereto, shall be taken into account.
                        Member States shall pay particular attention to the protection of operators and workers.
                        Producers shall ensure strict maintenance of environmental conditions and quality control analysis during the manufacturing process as laid down in Working Document SANCO/12116/2012 as regards the limits on microbiological contamination.

               (1)  Further details on the identity and the specification of the active substance are provided in the renewal report.

               (2)  https://ec.europa.eu/food/sites/food/files/plant/docs/pesticides_ppp_app-proc_guide_phys-chem-ana_microbial-contaminant-limits.pdf

            ANNEX II
            The Annex to Commission Implementing Regulation (EU) No 540/2011 is amended as follows:

                        (1)

                        in Part A, entry 201 on Phlebiopsis gigantea strains is replaced as follows:

                                    ‘201

                                       Phlebiopsis gigantea

                                    STRAIN: VRA 1985
                                    Culture collection: No DSM 16202
                                    STRAIN: VRA 1986
                                    Culture collection: No DSM 16203
                                    STRAIN: FOC PG B20/5
                                    Culture collection: No IMI 390096
                                    STRAIN: FOC PG SP log 6
                                    Culture collection: No IMI 390097
                                    STRAIN: FOC PG SP log 5
                                    Culture collection: No IMI 390098
                                    STRAIN: FOC PG BU 3
                                    Culture collection: No IMI 390099
                                    STRAIN: FOC PG BU 4
                                    Culture collection: No IMI 390100
                                    STRAIN: FOC PG97/1062/116/1.1
                                    Culture collection: No IMI 390102
                                    STRAIN: FOC PG B22/SP1287/3.1
                                    Culture collection: No IMI 390103
                                    STRAIN: FOC PG SH 1
                                    Culture collection: No IMI 390104
                                    STRAIN: FOC PG B22/SP1190/3.2
                                    Culture collection: No IMI 390105

                                    Not applicable

                                    No relevant impurities

                                    1 May 2009

                                    30 April 2020

                                    PART A Only uses as fungicide may be authorised.
                                    PART B For the implementation of the uniform principles as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the review report on Phlebiopsis gigantea (SANCO/1863/2008) and in particular Appendices I and II thereof, as finalised in the Standing Committee on the Food Chain and Animal Health shall be taken into account. Conditions of use shall include, where appropriate, risk mitigation measures.’

                        (2)

                        in Part D, the following entries are added:

                                    ‘21

                                       Phlebiopsis gigantea strain VRA 1835

                                    Not applicable

                                    No relevant impurities

                                    1 September 2020

                                    31 August 2035

                                    For the implementation of the uniform principles, as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the renewal report on Phlebiopsis gigantea strain VRA 1835, and in particular Appendices I and II thereto, shall be taken into account.
                                    Member States shall pay particular attention to the protection of operators and workers.
                                    Producers shall ensure strict maintenance of environmental conditions and quality control analysis during the manufacturing process as laid down in Working Document SANCO/12116/2012 as regards the limits on microbiological contamination.

                                    22

                                       Phlebiopsis gigantea strain VRA 1984

                                    Not applicable

                                    No relevant impurities

                                    1 September 2020

                                    31 August 2035

                                    For the implementation of the uniform principles, as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the renewal report on Phlebiopsis gigantea strain VRA 1984, and in particular Appendices I and II thereto, shall be taken into account.
                                    Member States shall pay particular attention to the protection of operators and workers.
                                    Producers shall ensure strict maintenance of environmental conditions and quality control analysis during the manufacturing process as laid down in Working Document SANCO/12116/2012 as regards the limits on microbiological contamination.

                                    23

                                       Phlebiopsis gigantea strain FOC PG 410.3

                                    Not applicable

                                    No relevant impurities

                                    1 September 2020

                                    31 August 2035

                                    For the implementation of the uniform principles, as referred to in Article 29(6) of Regulation (EC) No 1107/2009, the conclusions of the renewal report on Phlebiopsis gigantea strain FOC PG 410.3, and in particular Appendices I and II thereto, shall be taken into account.
                                    Member States shall pay particular attention to the protection of operators and workers.
                                    Producers shall ensure strict maintenance of environmental conditions and quality control analysis during the manufacturing process as laid down in Working Document SANCO/12116/2012 as regards the limits on microbiological contamination.’


title: Commission Implementing Regulation (EU) 2021/81 of 27 January 2021 approving the basic substance Allium cepa L. bulb extract in accordance with Regulation (EC) No 1107/2009 of the European Parliament and of the Council concerning the placing of plant protection products on the market, and amending the Annex to Commission Implementing Regulation (EU) No 540/2011 (Text with EEA relevance)

text:
                  28.1.2021

                  EN

                  Official Journal of the European Union

                  L 29/12

         COMMISSION IMPLEMENTING REGULATION (EU) 2021/81
         of 27 January 2021
         approving the basic substance Allium cepa L. bulb extract in accordance with Regulation (EC) No 1107/2009 of the European Parliament and of the Council concerning the placing of plant protection products on the market, and amending the Annex to Commission Implementing Regulation (EU) No 540/2011
         (Text with EEA relevance)
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (1), and in particular Article 23(5) in conjunction with Article 13(2) thereof,
         Whereas:

                     (1)

                     On 4 September 2018, the Commission received an application from l’Institut de l’agriculture et de l’alimentation Biologique (ITAB), for the approval of Allium cepa L. bulb extract as a basic substance. That application was accompanied by the information required by the second subparagraph of Article 23(3) of Regulation (EC) No 1107/2009.

                     (2)

                     The Commission asked the European Food Safety Authority (‘the Authority’) for scientific assistance. The Authority provided the Commission with a technical report on Allium cepa L. bulb extract on 12 December 2019 (2). The Commission presented the review report (3) and a draft of this Regulation to the Standing Committee on Plants, Animals, Food and Feed on 18 May 2020.

                     (3)

                     The information provided by the applicant shows that the Allium cepa L. bulb extract fulfils the criteria of a foodstuff as defined in Article 2 of Regulation (EC) No 178/2002 of the European Parliament and of the Council (4). Moreover, it is not predominantly used for plant protection purposes but the extract can be useful in plant protection in a product consisting of the substance. Consequently, it is to be considered as a basic substance.

                     (4)

                     After examination of the application and all related documents, it may be expected that the Allium cepa L. bulb extract satisfies, in general, the requirements laid down in Article 23 of Regulation (EC) No 1107/2009, in particular with regard to the uses which were examined and detailed in the Commission review report. It is therefore appropriate to approve the Allium cepa L. bulb extract as a basic substance.

                     (5)

                     In accordance with Article 13(2) of Regulation (EC) No 1107/2009 in conjunction with Article 6 thereof and in the light of current scientific and technical knowledge, it is, however, necessary to include certain conditions for the approval.

                     (6)

                     In accordance with Article 13(4) of Regulation (EC) No 1107/2009, the Annex to Commission Implementing Regulation (EU) No 540/2011 (5) should be amended accordingly.

                     (7)

                     The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

               HAS ADOPTED THIS REGULATION:

            Article 1
            Approval of a basic substance
            The substance Allium cepa L. bulb extract as specified in Annex I is approved as a basic substance subject to the conditions as laid down in that Annex.

            Article 2
            Amendments to Implementing Regulation (EU) No 540/2011
            The Annex to Implementing Regulation (EU) No 540/2011 is amended in accordance with Annex II to this Regulation.

            Article 3
            Entry into force
            This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

            This Regulation shall be binding in its entirety and directly applicable in all Member States.
            Done at Brussels, 27 January 2021.

                  For the Commission

                  The President

               Ursula VON DER LEYEN

            (1)  OJ L 309, 24.11.2009, p. 1.

            (2)  EFSA (European Food Safety Authority), 2019. Technical report on the outcome of the consultation with Member States and EFSA on the basic substance application for Allium cepa bulb extract for use in plant protection as a fungicide in potatoes, tomatoes and cucumbers. EFSA supporting publication 2019:EN-1767. doi:10.2903/sp.efsa.2019.EN-1767.

            (3)  Final Review report for the basic substance Allium cepa L. bulb extract finalised in the Standing Committee on Plants, Animals, Food and Feed at its meeting on 22 October 2020 in view of the approval of Allium cepa L. bulb extract as basic substance in accordance with Regulation (EC) No 1107/2009 (SANTE/10842/2020 Rev2).

            (4)  Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).

            (5)  Commission Implementing Regulation (EU) No 540/2011 of 25 May 2011 implementing Regulation (EC) No 1107/2009 of the European Parliament and of the Council as regards the list of approved active substances (OJ L 153, 11.6.2011, p. 1).

            ANNEX I

                        Common Name, Identification Numbers

                        IUPAC Name

                        Purity (1)

                        Date of approval

                        Specific provisions

                           Allium cepa L. bulb extract
                        CAS No: not allocated
                        CIPAC No: not allocated

                        Not applicable

                        The onion bulbs used to prepare the extracts shall be of food grade quality meeting the requirements of WHO monographs on selected medicinal plants (Volume 1, Geneva, 1999) on Bulbus Allii Cepae

                        17.2.2021

                           Allium cepa L. bulb extract shall be used in accordance with the specific conditions included in the conclusions of the review report on Allium cepa L. bulb extract (SANTE/10842/2020 Rev2) and in particular Appendices I and II thereof.

               (1)  Further details on identity, specification and manner of use of the basic substance are provided in the review report.

            ANNEX II
            In Part C of the Annex to Implementing Regulation (EU) No 540/2011, the following entry is added:

                           Number

                           Common Name, Identification Numbers

                           IUPAC Name

                           Purity  (1)

                           Date of approval

                           Specific provisions

                           ‘23

                              Allium cepa L. bulb extract
                           CAS No: not allocated
                           CIPAC No: not allocated

                           Not applicable

                           The onion bulbs used to prepare the extracts shall be of food grade quality meeting the requirements of WHO monographs on selected medicinal plants (Volume 1, Geneva, 1999) on Bulbus Allii Cepae

                           17.2.2021

                              Allium cepa L. bulb extract shall be used in accordance with the specific conditions included in the conclusions of the review report on Allium cepa L. bulb extract (SANTE/10842/2020 Rev2) and in particular Appendices I and II thereof.’

               (1)  Further details on identity, specification and manner of use of basic substance are provided in the review report.