DIRECTIVE 1999/32/EC

of 26 April 1999 relating to a reduction in the sulphur content of certain liquid fuels and amending Directive 93/12/EEC (SULPHUR IN FUELS DIRECTIVE)

Presentation of the data available 24 May 2011 Energy Community Secretariat Adrian Jasimi – Oil Expert

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC

THE MAIN OBJECTIVE • To ensure effective protection from the recognized risks from SO2 emissions (acidification’s problem) • Protection of the environment, by preventing sulphur deposition exceeding critical loads and levels • The Directive covers two kinds of fuel oil (heavy fuel oil and gas oil) used for combustion with the purpose of generating heat or power

1st Environmental Task Force – 24 May 2011

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC

IMPLEMENTATION REQUIRMENTS CP can chose the appropriate way of transposing and implementation This requires a Law adopted by State Authorities (pr. & sec. legislation) Once transposed – the laws adopted needs to be properly implemented

Changes to the institutional framework will need to be considered Directive 1999/32/EC covers heavy fuel oil and gas - to be dealt with separately

 CPs have to comply with the max. Sulphur thresholds regardless of the origin and use: Industrial, Power Generation, heating, transport etc Several derogation/exemptions possibilities – by the EC

1st Environmental Task Force – 24 May 2011

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REGULATION (EC) No.1099/2008 ON ENERGY STATISTICS – “Combustible Fuels as part of Energy Products” FUEL OIL – DEFINITION  Fuel Oil - All residual (heavy) fuel oils (including those obtained by blending). Kinematic viscosity is above 10 cSt at 800C. The flash point is always above 500C and density is always more than 0,90 kg/l. of which: • Low sulphur content: Heavy fuel oil with sulphur content lower than 1 %. • High sulphur content: Heavy fuel oil with sulphur content of 1 % or higher

1st Environmental Task Force – 24 May 2011

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC

HEAVY FUEL OIL OBLIGATIONS •The sulphur content may not exceed 1% by mass •Heavy Fuel Oil term covers fuels as defined by the classification in the EUCN or ASTM D86 •CP may authorize a max. up to 3% by mass if cumulative criteria a met:  Fully complies with Directive 80/779/EEC on air quality limit values and guide values for sulphur dioxide and suspended particulates  The emissions do not contribute to critical loads being exceeded in any Party to the Treaty  CP in question follows the procedure described in Article 3(5) of the Sulphur in Fuels Directive and receives the approval of the EC

1st Environmental Task Force – 24 May 2011

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC

HEAVY FUEL OIL DEROGATION CP may (for specific use) derogate from max sulphur content of 1% by mass: -the fuel is used by combustion plants falling within the scope of the Large Combustion Plants Directive 2001/80/EC (LCPD), satisfying the definition of “new plants” and complying with the SO2 emission.

- the fuel is used by combustion plants falling outside the scope of the LCPD and complying with the SO2 emission limits established by SiF ≤ (1,700 mg/Nm3). -for combustion in refineries if the criteria established by the Sulphur in Fuels Directive are fulfilled. However, refinery combustion plants need to comply with the LCPD. -require further that the SO2 emissions are appropriately, i.e. strictly and regularly monitored by the competent authorities, and that a special permit specifying the emissions limit applicable is issued by the competent authorities.

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REGULATION (EC) No.1099/2008 ON ENERGY STATISTICS – “Combustible Fuels as part of Energy Products” GAS OIL – DEFINITION • Gas/diesel oil (distillate fuel oil) - Gas/diesel oil is primarily a medium distillate distilling between 1800C and 3800C. Includes blending components of which: • Transport diesel: On-road diesel oil for diesel compression ignition (cars, trucks, etc.), usually of low sulphur content (including biodiesels)

• Heating and other gasoil: Light heating oil for industrial and commercial uses, marine diesel and diesel used in rail traffic, other gas oil, including heavy gas oils which distil between 3800C and 5400C and which are used as petrochemical feedstocks.

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC

GAS OIL OBLIGATIONS •The sulphur content may not exceed 0.1% by mass •Gas Oil term covers fuels as defined by the classification in the EUCN or ASTM D86 • Should be excluded: - Diesel fuels as defined in Directive 98/70/EC relating to the quality of petrol and diesel fuels - Fuels used in non-road mobile machinery and agricultural tractors.

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC GAS OIL – UP TO 0.2% • Until 1 January 2013, a Contracting Party may also generally authorize a maximum sulphur content in gas oils of up to 0,2% by mass, to the extent that the following cumulative criteria are met: Fully complies with Directive 80/779/EEC on air quality limit values and guide values for sulphur dioxide and suspended particulates The emissions do not contribute to critical loads being exceeded in any Party to the Treaty

The CP in question follows the procedure described in Article 4(4) of the Sulphur in Fuels Directive and receives the approval of the EC

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DIRECTIVE “SULPHUR IN FUELS” ENFORCEMENT AND REPORTING • Sampling and analysis: shall commence within six months (Jan – Jun 2012) Shall be carried out with sufficient frequency and representative of the fuel examined. Routines of competences, frequency of sampling and quality of analysis should be reflected in primary and secondary legislation by June 2012 • Penalties: CP need to subject any violation of the two thresholds for sulphur content in fuels to penalties. The determination of penalties to be assessed and monitored by the ECS • Reporting: by 30 June of each year i.e. starting on 30 June 2012 Should include the granted derogations. Submitted to Commission but the Secretariat proposes that the required annual “short report” to be submitted to the Secretariat as well. The Secretariat will monitor whether or not the CP establish and submit the report

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DIRECTIVE “SULPHUR IN FUELS” DIRECTIVE 1999/32/EC

March 2010, the Secretariat developed:

Guidance on the major elements of this Directive

and a common exemplary Roadmap for its implementation

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DIRECTIVE “SULPHUR IN FUELS” ROADMAP – MARCH 2010 DATA AVAILABLE – KEY ELEMENTS The actual level of sulphur content in heavy oil fuels and gas oils from both domestic production and imports: • Croatia: Heavy fuel oil (HFO)-1,0%; Gas oil (GO)-0,1% BUT the Government may place on domestic market until end of 2012: HFO – 3% and GO – 0.5% • FYR of Macedonia: Heavy fuel oil (HFO)-1,0% (mainly Mazout M-1); Gas oil (GO) -0,1% (mainly extra light oil for households) • Bosnia and Herzegovina: Max. sulphur content in HFO produced in the Country is 3% until mid 2013. No data for the Gas oil. • Albania, Moldova, Montenegro, Serbia, Ukraine and UNMIK have not provided any information

1st Environmental Task Force – 24 May 2011

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DIRECTIVE “SULPHUR IN FUELS” ROADMAP – MARCH 2010 DATA AVAILABLE – KEY ELEMENTS Identification of (to be changed):

the

proper

legal

framework

for

implementation

• Croatia: Low on Air Quality Protection; Regulation on the Quality of PetroleumDerived Liquid Fuels • FYR of Macedonia: Rulebook of the quality of liquid fuels; Rulebook on maximum permissible concentration and quantities on other harmful matters that may be released into the air by individual pollution sources; Law on ambient air quality; Rulebook on Ambient Air Quality and Energy law • Bosnia and Herzegovina: Entity level Laws on Air protection; Decision on Liquid Fuels Quality (DLFQ) adopted by the Council of Ministers of BiH in 2002 and amended several times • Albania, Moldova, Montenegro, Serbia, Ukraine and UNMIK have not provided any information

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DIRECTIVE “SULPHUR IN FUELS” ROADMAP – MARCH 2010 DATA AVAILABLE – KEY ELEMENTS Current ongoing work: • Croatia: New Regulation on the Quality of Petroleum-Derived Liquid Fuels is adopted by the Government. Refineries Modernization conformity with the Implementation Plan is in progress. A Commission is established to monitor this progress. Deadline end of 2012. List of entities specifically affected by new legislation are indentified • FYR of Macedonia: The adoption of the Rulebook on the quality of liquid fuels and the Rulebook on limit values for permissible levels of emissions and types of pollutants into exhaust gases and vapors emitted into the air from stationary sources will be completed by the end of 2011. That means that full transposition will be achieved. • Bosnia and Herzegovina: New Decision on Liquid Fuels Quality (DLFQ) is prepared and adoption is expected very soon.

• Albania, Moldova, Montenegro, Serbia, Ukraine and UNMIK have not provided any information 1st Environmental Task Force – 24 May 2011

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DIRECTIVE “SULPHUR IN FUELS” ROADMAP – MARCH 2010 DATA AVAILABLE – KEY ELEMENTS Reporting, Sampling and Analysis : • Croatia: The system for monitoring, sampling and reporting with institutions in charge of analysis - laboratories etc, is established. Sampling and analysis is carrying out, annual reports are made and sent to designated authorities as early as year 2008. Ready to start with the EC and the ECS • FYR of Macedonia: Institutions in charge of sampling, analyzing and accreditations are in place. A database system will be set up for sampling and analysis by the end of this year. • Bosnia and Herzegovina:

Institutional framework is already in place as well as sampling, analyses and reporting. 1st Environmental Task Force – 24 May 2011

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DIRECTIVE “SULPHUR IN FUELS” CONCLUSIONS • The ECS is of the opinion that there are reasons for concern, which are mostly linked with the deadline for implementation of this Directive (31 December 2011) • The responses to the ECS has been dissatisfactory • So far, only the FYR of Macedonia, Bosnia and Herzegovina and Croatia have been in touch with the Secretariat • It is crucial for this Task Force to undertake concrete actions, related to transposition as well as the implementation of the Directive 1999/32/EC • Deadlines determined in Annex II to the Treaty and the Directive itself are unconditionally binding. If missing these deadlines, a Contracting Party will be in a state of non-compliance as described in Articles 90 and 91 of the Treaty

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