Select Committee on European Scrutiny Twentieth Report


ENERGY EFFICIENT LABELLING PROGRAMME FOR OFFICE AND RELATED EQUIPMENT

(a)
(20362)
9884/99
COM(99) 328
Draft Council Decision concerning the conclusion on behalf of the
European Community of an agreement between the United States of
America and the European Community on the Co-ordination of Energy-
Efficient Labelling Programmes.
(b)
(20963)
5702/00
COM(00) 18

Draft Council Regulation on a Community energy efficiency labelling
programme for office and communication technology equipment.


Legal base: (a) Articles 175(1) and 300(2) EC; qualified majority voting
(b) Article 95 EC; co-decision; qualified majority voting
Document originated: (a) 1 July 1999
(b) 28 January 2000
Forwarded to the Council: (a) 5 July 1999
(b) 31 January 2000
Deposited in Parliament: (a) 10 August 1999
(b) 15 February 2000
Department: Environment, Transport and the Regions
Basis of consideration: (a) EM of 13 September 1999
(b) EM of 22 February 2000
(both) Minister's letter and SEM of 26 May 2000
Previous Committee Report: None
Discussed in Council: 30 May 2000
Committee's assessment: Politically important
Committee's decision: (both) Not cleared; awaiting further information

    Background

4.1  According to the Commission, office equipment accounts for a large proportion of electricity consumption in the tertiary sector, and is moreover one of the fastest growing areas of consumption, due to the rate of growth of the service sector and increased use of information technology. It points out that, under the SAVE[10] programme, action has already been taken to reduce the electricity consumption of all major end-use devices (including minimum efficiency standards, labelling and other consumer information action), and that, in the case of office equipment, it is generally agreed that the most effective approach is to reduce power consumption when it is in the stand-by mode, by means of a voluntary labelling programme.

4.2  In this connection, the Commission had earlier drawn specific attention to the Energy Star Program, which was introduced in the United States in 1993. This has now become the de facto required standard for office equipment sold on the US market, resulting in a high level of manufacturer participation and raised consumer awareness, and the Commission had seen advantages in the Community becoming an equal partner alongside the US in running the programme, setting its technical standards, and thereby building upon the use of an already well recognised logo in the Community market. With this in mind, it had in 1996 sought, and obtained from the Council, a mandate to negotiate a binding agreement with the United States on the co-ordination of labelling programmes for energy-efficient office equipment. The Community has now presented two further documents to the Council, in the light of its discussions with the US authorities.

    The current documents

4.3  The first (document(a)) comprises a draft Council Decision concerning the conclusion of a five year agreement between the Community and the USA, under which the Commission would have the authority to manage and operate the agreement on behalf of the Energy Council. This document was the subject of an Explanatory Memorandum of 13 September 1999 from the Parliamentary Under-Secretary of State at the Department of the Environment, Transport and the Regions (Lord Whitty) in which he said that, although the proposal was consistent with the Government's policy objectives to encourage energy efficient products and improved consumer information, and with the Commission's commitments in this area, much — including any subsidiarity implications — would depend upon the way in which it was implemented (see paragraph 4.4 below). He also said that the legal base for the proposed decision had still to be finalised, and that, although the Commission had indicated that some funding would be available from the SAVE programme, the primary costs of promoting and enforcing the scheme would fall on Member States.

4.4  The second document is a draft Council Regulation, which would complement the Council Decision by setting out the detailed mode of operation of the agreement, together with the obligations of the Member States arising from their participation. In particular, it would describe the conditions for the use of the Energy Star logo, prohibit its misuse, and establish the general rules and procedures for the resulting Community programme, including the procedures for any revisions, for example as regards both the technical specifications and product groups covered. In addition, Member States would have to appoint a national body to give technical advice to the Commission, to participate in a Community-wide Energy Star Board, and to act as an information point for the public.

4.5  This latter proposal was dealt with by the Minister in a separate Explanatory Memorandum of 22 February 2000, in which he confirmed that the Regulation was necessary to ensure that the scheme can be effectively implemented within the Community. He also said that manufacturers, consumers and retailers were being consulted, and that the outcome of that consultation would be reported on in a subsequent Supplementary Explanatory Memorandum, which would be accompanied by a Regulatory Impact Assessment. We therefore decided to await this further information, and any further information regarding the legal base for the proposed Council Decision, before deciding whether, and in what terms, to report to the House.

    Minister's letter and Supplementary Explanatory Memorandum of 26 May 2000

4.6  We have now received from the Minister a letter and Supplementary Explanatory Memorandum of 26 May 2000 covering both these documents. As regards the proposed Council Decision (document (a)), he said that it had now been decided that the appropriate legal base was Article 175(1), and that the Energy Council on 30 May would be asked to make a decision to sign the agreement, leaving decisions to conclude it, and to adopt the draft Regulation (document (b)), to a later date, following consultations with the European Parliament. He went on to say that, although this Council would take place before formal scrutiny clearance could be obtained, he believed it was in the UK's interest to sign up as quickly as possible to the Energy Star Scheme, given the potential energy (and cost) savings that would arise, and the general support for it from industry. However, the Minister also said that it was not yet possible to offer a full report on the consultation exercise or the promised Regulatory Impact Assessment, as he is awaiting the result of discussions with small businesses affected by the proposed Regulation. A further detailed Supplementary Explanatory Memorandum covering a Regulatory Impact Assessment would therefore follow in mid to late June after consultation.

    Conclusion

4.7  Even though the rationale for the proposed Agreement seems sensible, we had taken a conscious decision to delay considering these two documents until we had received the Supplementary Explanatory Memorandum and Regulatory Impact Assessment promised by the Minister in his Explanatory Memorandum of 22 February. We are disturbed, therefore, to be presented with a situation where, before this information is available, the Community will apparently have committed itself to an Agreement (albeit on the basis that a further Council Decision will be needed to conclude the Agreement). We note that the Supplementary Explanatory Memorandum and Regulatory Impact Assessment will be available later this month, and, when these are provided, we would like the Minister to explain whether, and to what extent, the decisions still needing to be taken within the Council on the Agreement and the implementing Regulation would be susceptible to amendment should this be thought necessary in the light of any information contained in the Assessment. We would also like him to say whether the areas of uncertainty identified in his Explanatory Memorandum of 13 September 1999 — including those relating to subsidiarity — have now been satisfactorily resolved. We infer from what he has since said that this is the case, but we would welcome explicit reassurance on this point. In the meantime, we are not clearing these two documents.


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