Regulation on Amendments to the Regulation on Greenhouse Gas Emission Allowances and Emissions Trading

THE GOVERNMENT OF THE REPUBLIC OF CROATIA 2976 Pursuant to Article 47.h paragraph 1 of the Air Protection Act (Official Gazette 178/2004 and 60/2008), the Government of the Republic of Croatia, at its session on 23 September 2010 adopted the following REGULATION ON AMENDMENTS TO THE REGULATION ON GREENHOUSE GAS EMISSION ALLOWANCES AND EMISSIONS TRADING Article 1 In the Regulation on greenhouse emission allowances and emissions trading (Official Gazette 142/2008), in Article 3, item 1 the second sentence is deleted. Item 2 is amended to read: »2. emissions: means the release of greenhouse gases into the atmosphere from sources in an installation or the release from an aircraft performing an aviation activity listed in Annex I of this Regulation of the gases specified in respect of that activity,«. In item 11, after the word: »installations« the words: »or aircrafts« are added. In item 12, after the word: »installations«, the full stop is deleted and the words: »or aircrafts« are added. After item 12, the following items 13, 14, 15 and 16 are added and read: »13. aircraft operator: means the person who operates an aircraft at the time it performs an aviation activity listed in Annex I of this Regulation or, where that person is not known or is not identified by the owner of the aircraft, the owner of the aircraft, 14. commercial air transport operator: means an operator that, for remuneration, provides scheduled or non-scheduled air transport services to the public for the carriage of passengers, freight or mail, 15. administering Member State: means the Member State of the European Union responsible for administering the Community emissions trading scheme in respect of aircraft operators, 16. tonne-kilometres: means the product of the distance passed by an aircraft between the aerodrome of departure and the aerodrome of arrival and its payload in accordance with Annex VI of this Regulation.«. Article 2 In Article 7, paragraph 2 is added and reads: »(2) The Plan for monitoring greenhouse gas emissions from installations shall be submitted together with the permit.«. Article 3 After Article 11, the following Chapter III.A and Articles 11.a, 11.b, 11.c, 11.d and 11.e are added and read: »III.A AVIATION ACTIVITY Article 11.a (1) Aviation activities that include flights within the State, departing flights from an aerodrome situated in the territory of the State to countries which are not Member States of the European Union, and arriving flights to an aerodrome situated in the territory of the State from countries which are not Member States of the European Union, which are performed by an aircraft operator, are listed in Annex I of this Regulation. (2) The Ministry shall establish the list of aircraft operators for the flights referred to in paragraph 1 of this Article based on the information from the Croatian Civil Aviation Agency and Croatia Control Ltd. (3) The list referred to in paragraph 2 of this Article shall be published on the web site of the Ministry. Article 11.b (1) The aircraft operator referred to in Article 11.a of this Regulation shall monitor and report on tonne-kilometre data from aircrafts and on greenhouse gas emissions from aircrafts performing an aviation activity listed in Annex I of this Regulation. (2) The monitoring and reporting referred to in paragraph 1 of this Article shall be carried out based on the plan for monitoring and reporting on tonne-kilometre data and the plan for monitoring and reporting on greenhouse gas emissions from aircrafts. (3) The monitoring and reporting on tonne-kilometre data from aircrafts shall be performed for the calendar year 2012. (4) The monitoring and reporting on greenhouse gas emissions from aircrafts shall be performed each calendar year, and the first monitoring and reporting shall be performed in the calendar year 2012. Article 11.c (1) The aircraft operator shall submit the monitoring and reporting plan referred to in Article 11.b, paragraph 2 of this Regulation to the Ministry for approval not later than 31 August 2011. (2) The Ministry shall submit the monitoring and reporting plan referred to in Article 11.b, paragraph 2 of this Regulation to the Croatian Environment Agency for opinion. (3) The approval referred to in paragraph 1 of this Article shall be issued on the basis of the opinion obtained from the Croatian Environment Agency stating that the monitoring and reporting plan referred to in Article 11.b, paragraph 2 of this Regulation was prepared in accordance with mandatory guidelines on monitoring and reporting referred to in Article 26, paragraph 5 of this Regulation. Article 11.d (1) The aircraft operator shall prepare the report on greenhouse gas emissions from aircrafts in line with the guidelines referred to in Annex VI of this Regulation and mandatory guidelines on monitoring and reporting referred to in Article 26, paragraph 5 of this Regulation. (2) The report referred to in paragraph 1 of this Article must be verified in accordance with the criteria set out in Annex VII of this Regulation and the mandatory guidelines on the method of verification referred to in Article 26, paragraph 5 of this Regulation. (3) The aircraft operator shall submit the verified report referred to in paragraph 1 of this Article to the Croatian Environment Agency by 15 March of the current year for the preceding calendar year. (4) After verifying that the report is complete, the Croatian Environment Agency shall deliver the report referred to in paragraph 1 of this Article to the Ministry by 31 March of the current year for the preceding calendar year. Article 11.e (1) The aircraft operator shall prepare the report on tonne-kilometre data for 2012 in line with the guidelines referred to in Annex VI of this Regulation and mandatory guidelines on monitoring and reporting referred to in Article 26, paragraph 5 of this Regulation. (2) The report referred to in paragraph 1 of this Article must be verified in accordance with the criteria set out in Annex VII of this Regulation and the mandatory guidelines on the method of verification referred to in Article 26, paragraph 5 of this Regulation. (3) The aircraft operator shall submit the verified report referred to in paragraph 1 of this Article to the Ministry by 31 March 2013. (4) The provisions of Articles 26 and 27 of this Regulation shall apply appropriately to the procedure of preparing and verifying the report referred to in paragraph 1 of this Article and Article 11.d of this Regulation.«. Article 4 In Article 12, paragraph 3, the words: »14 days after obtaining the permit at the latest« are replaced by the words: »by 30 November 2012«. Paragraph 4 is amended to read: »(4) The Registry Administrator shall notify the account user concerning the opening of the user account.«. Article 5 Article 17 is deleted. Article 6 In Article 26, paragraph 4, the words: »paragraph 3« are replaced by the words: »paragraph 2«. Article 7 In Article 28, paragraph 2, the words: »31 March« are replaced by the words: »30 April«. Article 8 After Article 28, the following Article 28.a is added: »Article 28.a (1) The installation operator shall use the greenhouse gas emission data collected for 2005, 2006, 2007, 2008 and 2009 to prepare reports on greenhouse gas emissions from installations for the listed years. (2) The installation operator shall submit the verified reports referred to in paragraph 1 of this Article to the Croatian Environment Agency by 30 June 2011. (3) After verifying that the reports are complete, the Croatian Environment Agency shall deliver the reports referred to in paragraph 1 of this Article to the Ministry by 31 October 2011. (4) The provisions of Articles 26 and 27 of this Regulation shall apply appropriately to the procedure of preparing and verifying the reports referred to in paragraph 1 of this Article.«. Article 9 In the entire text of the Regulation on greenhouse emission allowances and emissions trading (Official Gazette 142/2008), the Croatian words translated as: »verification« and »verifier« in their respective forms are replaced by another Croatian word in its respective forms, with no relevance to the English translation. Article 10 Annexes I, VI and VII referred to in Article 33 of the Regulation on greenhouse emission allowances and emissions trading are replaced by new Annexes I, VI and VII which are published along with this Regulation and form an integral part thereof. Article 11 This Regulation shall enter into force on the eighth day after the day of its publication in the Official Gazette. Class: 351-01/10-01/03 Reg No: 5030105-10-1 Zagreb, 23 September 2010 Prime Minister Jadranka Kosor, m. p. ANNEX I ACTIVITIES RESULTING IN GREENHOUSE GAS EMISSIONS The values given below refer to production capacities or outputs. Where one operator carries out several activities falling under the same subheading in the same installation or on the same site, the capacities of such activities are added together. Activities Greenhouse gases Energy activities Combustion installations with a rated thermal input exceeding 20 MW (except installations for incineration of hazardous or municipal waste) Oil refineries Coke ovens Carbon dioxide Carbon dioxide Carbon dioxide Production or processing of ferrous metals Metal ore (including sulphide ore) roasting or sintering installations Installations for the production of pig iron or steel (primary or secondary fusion) including continuous casting, with a capacity exceeding 2.5 tonnes per hour Carbon dioxide Carbon dioxide Mineral industry Installations for the production of cement clinker in rotary kilns with a production capacity exceeding 500 tonnes per day, or lime in rotary kilns with a production capacity exceeding 50 tonnes per day or in other furnaces with a production capacity exceeding 50 tonnes per day Installations for the manufacture of glass including glass fibre with a melting capacity exceeding 20 tonnes per day Installations for the manufacture of ceramic products by firing, in particular roofing tiles, bricks, refractory bricks, tiles, stoneware or porcelain, with a production capacity exceeding 75 tonnes per day, and/or with a kiln capacity Carbon dioxide Carbon dioxide Carbon exceeding 4 m³ and with a setting density per kiln exceeding 300 kg/m³ dioxide Other activities Industrial plants for the production of: a) pulp from timber or other fibrous materials b) paper and board with a production capacity exceeding 20 tonnes per day Carbon dioxide Carbon dioxide Aviation Flights departing from or arriving at an aerodrome situated in the territory of the State. This activity shall not include: (a) flights performed exclusively for the transport, on official mission, of a reigning Monarch and his immediate family, Heads of State, Heads of Government and Government Ministers, of a country other than a Member State of the European Union, where this is substantiated by an appropriate status indicator in the flight plan; (b) military flights performed by military aircraft and customs and police flights; (c) flights related to search and rescue, firefighting flights, humanitarian flights and emergency medical service flights authorised by the appropriate competent authority; (d) any flights performed exclusively under visual flight rules as defined in Annex 2 to the Chicago Convention; (e) flights terminating at the aerodrome from which the aircraft has taken off and during which no intermediate landing has been made; (f) training flights performed exclusively for the purpose of obtaining a licence, or a rating in the case of cockpit flight crew where this is substantiated by an appropriate remark in the flight plan provided that the flight does not serve for the transport of passengers and/or cargo or for the positioning or ferrying of the aircraft; (g) flights performed exclusively for the purpose of scientific research or for the purpose of checking, testing or certifying aircraft or equipment whether airborne or ground-based; (h) flights performed by aircraft with a certified maximum take-off mass of less than 5 700 kg; (i) flights performed in the framework of public service obligations imposed in accordance with Regulation (EEC) No 2408/92 on routes within outermost Carbon dioxide regions, as specified in Article 299(2) of the Treaty, or on routes where the capacity offered does not exceed 30 000 seats per year; and (j) flights which, but for this point, would fall within this activity, performed by a commercial air transport operator operating either: — fewer than 243 flights per period for three consecutive four-month periods; or — flights with total annual emissions lower than 10 000 tonnes per year. Flights performed exclusively for the transport, on official mission, of a reigning Monarch and his immediate family, Heads of State, Heads of Government and Government Ministers, of a Member State may not be excluded under this point. Definitions of combustion installations Petrochemical crackers »Combustion emissions from chemical installations with processes designed for the production on an industrial scale, either individually or in combination, of propylene and ethylene. Within this, "industrial scale" is product output of at least 50 ktpa.« Integrated steelworks »Production and processing of ferrous metals: – Metal ore (including sulphide ore) roasting or sintering installations; – Installations for the production of pig iron or steel (primary or secondary fusion) including continuous casting, with a capacity exceeding 2.5 tonnes per hour. Additional combustion activities at integrated steelworks including rolling mills, re-heaters, annealing furnaces and pickling«. »Integrated steelworks are sites comprising several separately identifiable processes, which are carried out as sequential operations on a single site, to convert iron ores and other raw materials into semi-finished steel products, such as slab, bloom or billet, and a variety of finished products, including plate, sections, bars, rods, hot and cold rolled sheet and coil together with various types of coated flat products.« Stone wool »Installations for the manufacture of mineral wool insulation material, using rock, glass or slag, including all fuel combustion on site related to the manufacture of mineral wool products (with a melting capacity exceeding 20 tonnes per day).« Flaring »The combustion of materials derived from the exploration, appraisal, production, storage and processing of offshore oil and gas (including imported oil and gas stored in offshore reservoirs), for purposes other than energy production, where such activities are undertaken at offshore oil and gas facilities or onshore oil and gas reception terminals that are designated combustion installations with a rated thermal input exceeding 20 MW«. Carbon black »Activities of installations for the production of carbon black involving the carbonisation of organic substances such as oils, tars, cracker and still residues with combustion plant rated thermal input exceeding 20 MW.« Furnaces »For the purposes of Phase II of the EU ETS, combustion installations shall include CO2 combustion emissions from furnaces which are defined as the heat source for the following activities: All furnaces already covered in the assigned sectors of Annex 1 such as (this list is not exhaustive): – the fractional distillation column in oil refineries – the manufacturing of glass, including glass fibre, at installations with a melting capacity exceeding 20 tonnes per day – the processing of ferrous metal ore and the production of pig iron and steel (primary or secondary fusion), including continuous casting, with a capacity of more than 2.5 tonnes per hour, including the heat driving rolling mills, re heaters, annealing furnaces and pickling at integrated sites. And the following additional combustion furnaces: – the production on an industrial scale (>50 ktpa) of propylene and ethylene – the manufacture of mineral wool insulation material, using rock, glass or slag – the production of carbon black involving the carbonisation of organic substances such as oils, tars, cracker and still residues.« ANNEX VI MONITORING AND REPORTING GUIDELINES PART A — Monitoring and reporting on emissions from stationary installations Monitoring of carbon dioxide emissions Emissions shall be monitored either by calculation or on the basis of measurement. Calculation Calculations of emissions shall be performed using the formula: Activity data × Emission factor × Oxidation factor Activity data (fuel used, production rate etc.) shall be gathered and obtained on the basis of data on raw material and fuel supply and delivery of the installation’s finished products or on the basis of measurement. Accepted emission factors shall be used. Activity-specific emission factors shall be acceptable for all fuels. Default factors shall be acceptable for all fuels except non-commercial ones (waste fuels such as tyres and industrial process gases). Seam-specific defaults for coal, and EU-specific or producer country-specific defaults for natural gas shall be further elaborated. IPCC (Intergovernmental Panel on Climate Change) default values shall be acceptable for refinery products. The emission factor for biomass shall be zero. If the emission factor does not take account of the fact that some of the carbon is not oxidised, then an additional oxidation factor shall be used. If activity-specific emission factors have been calculated and already take oxidation into account, then an oxidation factor need not be applied. Default oxidation factors developed pursuant to Directive 96/61/EC shall be used, unless the operator can demonstrate that activity-specific factors are more accurate. A separate calculation shall be made for each activity, installation and for each fuel. Measurement Measurement of emissions shall use standardised or accepted methods, and shall be corroborated by a supporting calculation of emissions. Monitoring of emissions of other greenhouse gases Standardised or accepted methods shall be used, developed by the European Commission in collaboration with all relevant stakeholders. Reporting on emissions Each operator shall include the following information in the report on emissions from the installations referred to in Article 26 of this Regulation: A. Data identifying the installation, including: – name of the installation; – its address, including postcode and country; – type and number of activity listed in Annex I of this Regulation carried out in the installation; – address, telephone, fax and e-mail details for a contact person; and – name of the owner of the installation, and of any parent company. B. For each activity listed in Annex I of this Regulation carried out on the site for which emissions are calculated: – activity data; – emission factors; – oxidation factors; – total emissions; and – uncertainty. C. For each activity listed in Annex I of this Regulation carried out on the site for which emissions are measured: – total emissions; – information on the reliability of measurement methods; and – uncertainty. D. For emissions from combustion processes, the report shall also include the oxidation factor, unless oxidation has already been taken into account in the development of an activity specific emission factor. The operator shall coordinate the data from this report with the data in the report submitted for the needs of the Environmental Pollution Register. PART B — Monitoring and reporting on emissions from aviation activities Monitoring of carbon dioxide emissions Emissions shall be monitored by calculation. Emissions shall be calculated using the formula: Fuel consumption × emission factor Fuel consumption shall include fuel consumed by the auxiliary power unit. Actual fuel consumption for each flight shall be used wherever possible and shall be calculated using the formula: Amount of fuel contained in aircraft tanks once fuel uplift for the flight is complete – amount of fuel contained in aircraft tanks once fuel uplift for subsequent flight is complete + fuel uplift for that subsequent flight. If actual fuel consumption data are not available, a standardised tiered method shall be used to estimate fuel consumption data based on best available information. Default IPCC emission factors, taken from the 2006 IPCC Inventory Guidelines or subsequent updates of these Guidelines, shall be used unless activity-specific emission factors identified by independent accredited laboratories using accepted analytical methods are more accurate. The emission factor for biomass shall be zero. A separate calculation shall be made for each flight and for each fuel. Reporting of emissions The report on greenhouse gas emissions from aircrafts referred to in Article 11.d of this Regulation shall include the following information: A. Data identifying the aircraft operator, including: — name of the aircraft operator, — its administering Member State, — its address, including postcode and country and, where different, its contact address in the administering Member State, — the aircraft registration numbers and types of aircraft used by the aircraft operator to perform the aviation activities listed in Annex I of this Regulation during the period covered by the report, — the number and issuing authority of the air operator certificate and operating licence under which the aircraft operator performed the aviation activities listed in Annex I of this Regulation, — address, telephone, fax and e-mail details for a contact person, and — name of the aircraft owner. B. For each type of fuel for which emissions are calculated: — fuel consumption, — emission factor, — total aggregated emissions from all flights within the State, flights which depart from an aerodrome situated in the territory of the State to countries which are not Member States of the European Union, and flights which arrive to an aerodrome situated in the territory of the State from countries which are not Member States of the European Union, that were realised by the aircraft operator while performing the aviation activities listed in Annex I of this Regulation during the period covered by the report, – uncertainty. Monitoring and reporting on tonne-kilometre data from aviation activities Monitoring of tonne-kilometre data The amount of aviation activity shall be calculated in tonne-kilometres using the following formula: Tonne-kilometres = distance × payload where: »distance« means the great circle distance between the aerodrome of departure and the aerodrome of arrival plus an additional fixed factor of 95 km; and »payload« means the total mass of freight, mail and passengers carried. For the purposes of calculating the payload: — the number of passengers shall be the number of persons on-board excluding crew members, — an aircraft operator may choose to apply either the actual or standard mass for passengers and checked baggage contained in its mass and balance documentation for the relevant flights or a default value of 100 kg for each passenger and his checked baggage. Reporting of tonne-kilometre data The report on tonne-kilometre data from aircrafts referred to in Article 11.e of this Regulation shall include the following information: A. Data identifying the aircraft operator, including: — name of the aircraft operator, — its administering Member State, — its address, including postcode and country and, where different, its contact address in the administering Member State, — the aircraft registration numbers and types of aircraft used by the aircraft operator to perform the aviation activities listed in Annex I of this Regulation during the year covered by the report, — the number and issuing authority of the air operator certificate and operating licence under which the aircraft operator performed the aviation activities listed in Annex I of this Regulation, — address, telephone, fax and e-mail details for a contact person, and — name of the aircraft owner. B. Tonne-kilometre data: — number of flights by aerodrome pair, — number of passenger-kilometres by aerodrome pair, — number of tonne-kilometres by aerodrome pair, — chosen method for calculation of mass for passengers and checked baggage, — total number of tonne-kilometres for all flights within the State, flights which depart from an aerodrome situated in the territory of the State to countries which are not Member States of the European Union, and flights which arrive to an aerodrome situated in the territory of the State from countries which are not Member States of the European Union, that were realised by the aircraft operator while performing the aviation activities listed in Annex I of this Regulation during the period covered by the report. ANNEX VII VERIFICATION CRITERIA ‘PART A — Verification of emissions from stationary installations General Principles 1. Emissions from each activity listed in Annex I of this Regulation shall be subject to verification. 2. The verification process shall include consideration of the report referred to in Article 26 of this Regulation and of emission monitoring during the preceding year. It shall address the reliability, credibility and accuracy of monitoring systems and the reported data and information relating to emissions, in particular: (a) the reported activity data and related measurements and calculations; (b) the choice and employment of emission factors; (c) the calculations leading to the determination of the overall emissions; (d) if measurement is used, the appropriateness of the choice and the employment of measuring methods. 3. Emissions reported in the report on emissions referred to in Article 26 of this Regulation may only be verified if reliable and credible data and information allow the emissions to be determined with a high degree of certainty. A high degree of certainty requires the operator to show that: (a) the reported data is free of inconsistencies; (b) the collection of the data has been carried out in accordance with the applicable scientific standards; (c) the relevant records of the installation are complete and consistent. . 4. The verifier shall be given access to all sites and information in relation to the subject of the verification. 5. The verifier shall take into account whether the installation is registered under the Community Eco-Management and Audit Scheme (EMAS). Methodology Strategic analysis 6. The verification shall be based on a strategic analysis of all the activities carried out in the installation. This requires the verifier to have an overview of all the activities and their significance for emissions. Process analysis 7. The verification of the information submitted shall, where appropriate, be carried out on the site of the installation. The verifier shall use spot-checks to determine the reliability of the reported data and information. Risk analysis 8. The verifier shall submit all the sources of emissions in the installation to an evaluation with regard to the reliability of the data of each source contributing to the overall emissions of the installation. 9. On the basis of this analysis the verifier shall explicitly identify those sources with a high risk of error and other aspects of the monitoring and reporting procedure which are likely to contribute to errors in the determination of the overall emissions. This especially involves the choice of the emission factors and the calculations necessary to determine the level of the emissions from individual sources. Particular attention shall be given to those sources with a high risk of error and the abovementioned aspects of the monitoring procedure. 10. The verifier shall take into consideration any effective risk control methods applied by the operator with a view to minimising the degree of uncertainty. Report 11. The verifier shall prepare a verification report stating whether the report pursuant to Article 26, paragraph 1 of this Regulation is satisfactory. This report shall specify all issues relevant to the work carried out. A statement that the report drawn up in line with the provisions of Article 26 paragraph 1 of this Regulation is satisfactory may be made if, in the opinion of the verifier, the total emissions are not materially misstated. Minimum competency requirements for the verifier 12. The verifier shall be independent of the installation operator whose report on emissions referred to in Article 26 of this Regulation he/she is verifying. In doing so, the verifier shall carry out his/her activities in a sound and objective professional manner, and understand: (a) the provisions of this Regulation, as well as relevant standards and guidance adopted by the Republic of Croatia/State and the European Commission; (b) the legislative, regulatory, and administrative requirements relevant to the activities being verified; and (c) the generation of all information related to each source of emissions in the installation, in particular, relating to the collection, measurement, calculation and reporting of data on emissions. PART B — Verification of emissions from aviation activities 13. The general principles and methodology set out in this Annex shall apply to the verification of reports on greenhouse gas emissions from aircrafts referred to in Article 11.d of this Regulation. For this purpose: (a) in paragraph 3, the reference to operator shall be read as if it were a reference to an aircraft operator, and in point (c) of that paragraph the reference to installation shall be read as if it were a reference to the aircraft used to perform the aviation activities covered by the report on emissions referred to in Article 11.d of this Regulation refers; (b) in paragraph 5, the reference to installation shall be read as if it were a reference to the aircraft operator; (c) in paragraph 6 the reference to activities carried out in the installation shall be read as a reference to aviation activities covered by the report on emissions referred to in Article 11.d of this Regulation carried out by the aircraft operator; (d) in paragraph 7 the reference to the site of the installation shall be read as if it were a reference to the sites used by the aircraft operator to perform the aviation activities covered by the report on emissions referred to in Article 11.d of this Regulation; (e) in paragraphs 8 and 9 the references to sources of emissions in the installation shall be read as if they were a reference to the aircraft for which the aircraft operator is responsible; and (f) in paragraphs 10 and 12 the references to operator shall be read as if they were a reference to an aircraft operator. Additional provisions for the verification of aviation emission reports 14. The verifier shall in particular ascertain that: (a) all flights falling within an aviation activity listed in Annex I of this Regulation have been taken into account. In this task the verifier shall be assisted by timetable data and other data on the aircraft operator’s traffic including data from Eurocontrol requested by that operator. (b) there is overall consistency between aggregated fuel consumption data and data on fuel purchased or otherwise supplied to the aircraft performing the aviation activity. Additional provisions for the verification of tonne-kilometre data 15. The general principles and methodology for verifying reports on emissions referred to in Articles 11.d and 26 of this Regulation as set out in this Annex shall, where applicable, also apply correspondingly to the verification of tonne-kilometre data from aircrafts. 16. The verifier shall in particular ascertain that only flights actually performed and falling within an aviation activity listed in Annex I of this Regulation for which the aircraft operator is responsible have been taken into account in the report referred to in Article 11.e of this Regulation. In this task the verifier shall be assisted by data on the aircraft operator’s traffic including data from Eurocontrol requested by that operator. In addition, the verifier shall ascertain that the payload reported by the aircraft operator corresponds to records on payloads kept by that operator for safety purposes.