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Gap Analysis of Area of Environmental Protection in Fbih USAID Energy Investment Activity Project (EIA) Gap Analysis of Area of Environmental Protection in FBiH UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT Energy Investment Activity (USAID EIA) Contract Number AID-168-C-14-00002 Gap Analysis of Area of Environmental Protection in FBiH Author: EIA Project Team July, 2017 Implemented by: Advanced Engineering Associates International, Inc. (AEAI) USAID COR: Ankica Gavrilovic This document is made possible by support from the American People sponsored by United States Agency for International Development (USAID). The contents of this document were prepared by and are the sole responsibility of Advanced Engineering Associates International, Inc., and do not necessarily reflect the views of USAID or the United States Government. Contract Number AID-168-C-14-00002 1 USAID Energy Investment Activity Project (EIA) Gap Analysis of Area of Environmental Protection in FBiH 1. THE ENVIRONMENTAL PROTECTION SECTOR AND ENERGY INFRASTRUCTURE IN THE CONTEXT OF EUROPEAN INTEGRATION 1.1 Introduction The environmental protection sector plays a very important role in the construction of power facilities. According to the findings of the EC Roland Berger Report,1 which analyzed permitting procedures for energy infrastructure projects in 13 EU member states, incompatibility of projects with environmental regulations was identified as one of the key causes for the delay or failure of energy infrastructure projects and was assessed as a medium risk factor among key challenges causing delays. Almost 80% of the documentation required for a permitting procedure is made up of documents and analyses related to environmental protection whose preparation usually requires two or more years.2 Regulation (EU) 347/2013 recognizes the important role that an environmental impact assessment (EIA) has in determining the duration of the procedure for constructing energy infrastructure.3 The Regulation, which sets up the framework for the construction of priority energy infrastructure in the EU, states that Member States should undertake legislative and non-legislative measures to streamline EIA procedures. To clarify these measures, in 2013, the European Commission issued the Guidance Document Streamlining environmental assessment procedures for energy infrastructure (Guidance Document)4 to support Member States in their efforts to improve and better coordinate the EIA procedure with a view to reducing unnecessary administrative burdens and speeding up the process while maintaining a maximum level of environmental protection.5 The EC Roland Berger Report and the European Commission Guidance Document provide recommendations for measures that Member States should apply in order to achieve the above goals. In particular, they underline the importance of measures to adopt and apply solutions from the EIA and SEA Directives6 in terms of organizing environmental permitting procedures and ensuring public 1 Roland Berger Strategy Consultants, “Permitting procedures for energy infrastructure projects in the EU: evaluation and legal recommendations,” Tender No. ENER/B1/452-2010, Final Report. European Commission Directorate-General for Energy, Berlin/Brussels, 31 July 2011, p. 22, available at url: https://ec.europa.eu/energy/sites/ener/files/documents/2011_ten_e_permitting_report.pdf. 2 Ibid., p. 43. 3 Regulation (EU) No. 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans- European energy infrastructure and repealing Decision No. 1364/2006/EC and amending Regulations (EC) No. 713/2009, (EC) No. 714/2009 and (EC) No. 715/2009 (Regulation (EU) 347/2013). 4 European Commission, 2013, Streamlining environmental assessment procedures for energy infrastructure Projects of Common Interest (PCIs), http://ec.europa.eu/environment/eia/pdf/PCI_guidance.pdf. 5 Ibid., p. 4. 6 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment, amended by Directive 2014/52/EU (EIA Directive) and Directive 2001/42/EU of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programs on the environment (SEA Directive). Contract Number AID-168-C-14-00002 2 USAID Energy Investment Activity Project (EIA) Gap Analysis of Area of Environmental Protection in FBiH participation in early stages of the procedure. Although the primary objective of these measures is to speed up the construction of priority energy infrastructure in the EU, they are no doubt also applicable to the general permitting framework for all energy infrastructure projects. By signing the Treaty establishing the Energy Community, which came into force in Bosnia and Herzegovina on 1 July 2006, Bosnia and Herzegovina became a member of the Energy Community and committed to adopting the acquis communautaire (European Union legislation) adapted to the institutional framework of the Contracting Parties in the following areas: energy, environment, competition and renewable energy sources. In terms of the environment, the Energy Community acquis comprises a total of 7 directives,7 including the above-mentioned EIA Directive and SEA Directive, whose implementation has been underscored as important for speeding up and streamlining the permitting procedure for energy infrastructure. 1.2. EIA Directive The EIA Directive comprises two directives. The 2011 Directive contains the main text, while the 2014 Directive introduces certain amendments to the main text. The EIA Directive was adopted fully into the framework of the Energy Community in October 2016 by the Ministerial Council Decision D/2016/12/MC-EnC. This Decision obliges Bosnia and Herzegovina to implement the provisions of the main text of the 2011 Directive by 14 October 2016, and those of its 2014 amendments by 1 January 2019. In terms of subject matter, the EIA Directive pertains to environmental impact assessments of public and private projects with potentially significant environmental effects. According to its provisions, Member States must adopt all measures necessary to ensure that, before consent is given for 7 The environmental acquis includes the following directives: a) Directive (EU) 2016/802 of the European Parliament and of the Council of 11 May 2016 relating to a reduction in the sulphur content of certain liquid fuels and the Commission Implementing Decision (EU) 2015/253 of 16 February 2015 laying down the rules concerning the sampling and reporting under Council Directive 1999/32/EC as regards the sulphur content of marine fuels (deadline: 30 June 2018), Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment, amended by Directive 2014/52/EU (deadline: 1 January 2019), b) Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) – only Chapter III, Annex V, and Article 72(3)-(4) (deadline: 1 January 2018), c) Directive 2004/35/EU of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage, amended by Directive 2006/21/EC, Directive 2009/31/EC, and Directive 2013/30/EU (deadline: 1 January 2021), d) Directive 2001/80/EC of the European Parliament and of the Council of 23 October 2001 on the limitation of emissions of certain pollutants into the air from large combustion plants (deadline: 31 December 2017), e) Directive 2001/42/EU of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programs on the environment (deadline: 31 March 2018), f) Article 4(2) of the Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds (deadline: 1 July 2006). Contract Number AID-168-C-14-00002 3 USAID Energy Investment Activity Project (EIA) Gap Analysis of Area of Environmental Protection in FBiH continuing a procedure, projects likely to have significant effects on the environment are made subject to a requirement for EIA and for obtaining special development consent. The Directive determines two categories of projects: 1) projects subject to an EIA procedure (listed in Annex I of the Directive), 2) projects for which it is to be determined whether they shall be made subject to an EIA (listed in Annex II of the Directive). The Directive establishes a framework for the environmental permitting procedure, and criteria for decision making in individual phases of the procedure are also clearly stipulated. This contributes to making the procedure uniform and organized and reduces room for the subjective interpretation of norms by employees in institutions and bodies responsible for issuing permits. Namely, these factors have been identified as key causes for differing durations of the environmental procedures in different cases. The Directive defines (i) which projects will be automatically subject to an EIA, and (ii) for which projects the requirement of an EIA will be decided on a case-by-case basis or by thresholds/criteria set by the Member State. In addition, the Directive provides for other important criteria, such as: a) the content and type of information to be provided by the developer for the purpose of deciding whether a project should be subject to an EIA (given in Annex II-A of the EIA Directive and including, inter
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