Last November, the Commission proposed a Directive on the energy performance of buildings whose main objective is to recast of Directive 2002/91/EC.
The 2004 Housing Act has transposed the Directive on the energy performance of buildings. The UK law goes significantly further than the minimum standards set out in the EU directive. For instances, whereas the directive requires a energy performance certificate to be produced every 10 years under the UK law a new certificate has to be made with every sale. The directive does not provide for the creation of a central government register of all energy certificates, nor provides for strict fines for non-compliance, but this is cover on the UK Regulation.
In record time, on 23 April, the European Parliament adopted with amendments at first-reading the Commission's proposal for the revised Energy Performance of Buildings Directive. The European Parliament added several provisions to the draft directive proposed by the European Commission.
The Commission’s proposal extends the scope of the Energy Performance of Buildings Directive to all existing buildings and not just those over 1,000m2. The European Parliament voted to support the Commission proposal to lift the 1000m2 threshold for subjecting existing buildings to minimum energy performance requirements. Moreover, all buildings undergoing major renovations would also have to meet minimum energy performance requirements. Major renovations are renovations which cover more than 25% of the building’s surface.
The draft proposal also introduces minimum energy performance requirements for systems, such as boilers, water heaters and air conditioning installed in buildings.
The Commission has proposed to reduce from 1000m2 to 250m2 the area above which energy performance certificates have to be displayed in a public building. Ian Austin, the Parliamentary Under-Secretary of State at the Department for Communities and Local Government, has said to the European Scrutiny Committee that the number of public buildings affected by such extension would rise from 42,000 to 64,000. Moreover, such requirement would entail annual costs of £8 million whereas benefits would be around £1.3 million.
According to the MEPs holiday homes used less than four months a year will also need to respect minimum energy performance requirements. The Commission has proposed to exempt such houses. Only small houses, buildings for religious activities, temporary buildings, historic buildings and agricultural buildings with low energy demand are excluded from the directive's energy efficiency requirements.
The Commission has also proposed more specific requirements concerning to the content of energy performance certificates. Under the Draft proposal, the certificate must be provided every time there is a property transaction. It would require the certificate to provide information about the actual impact of heating and cooling on the energy needs of the building, on its primary energy consumption and on carbon dioxide emissions.
The directive provides for regular inspection and maintenance of boilers, heating and of air-conditioning systems by qualified personnel. The proposal would extend the requirement on Member States to set up regular inspections of the boiler heating systems, which presently applies to those with an output between 20kW and 100kW, to include all boilers with an output greater than 20kW.
Iain Wright has said to the European Scrutiny Committee that although the UK has already adopted the majority of the proposed measures the provision of control systems for energy performance certificates and inspections of heating and air conditioning systems will have financial implications.
Presently, Member States are required to set their minimum energy performance requirements using their own calculation methodology in order to achieve the cost-optimal levels determined by them. However, the Commission has proposed that the minimum energy performance requirements set by Member States should be progressively aligned with cost-optimal levels calculated in accordance with a methodology to be developed by the Commission by the end of 2010. The MEPs urged the Commission to establish a common methodology for calculating the energy performance of buildings by 31 March 2010. According to Iain Wright, the introduction of cost-optimal energy performance levels will have financial implications.
The Commission proposed that member states should draw national plans to identify targets for increasing the minimum percentage of buildings which consume low or zero energy. Zero-energy buildings were defined by the MEPs as buildings "where, as a result of the very high level of energy efficiency of the building, the overall annual primary energy consumption is equal to or less than the energy production from renewable energy sources on site." The buildings would produce their own energy using renewable energies like solar panels while minimising energy-loss with better insulation.
The European Parliament has called on the Commission to establish by the end of 2010, a detailed common European definition of "net zero energy buildings.”
Moreover, the European Parliament has voted for EU Member States to be required to ensure by 31 December 2018 that all new buildings produce as much energy as they consume on-site. According to the European Parliament Member States should also set intermediate national targets for minimum percentages of zero-energy buildings for existing buildings, by 2015 and by 2020.
According to Ian Austin the adoption of the definition of low and zero carbon buildings and the target to increase the number of these buildings raise subsidiarity issues and entail further costs.
The MEPs also introduced new provisions requiring Member States to present national action plans by June 2011 establishing financial instruments for improving the energy efficiency of buildings, such as low-interest loans and fiscal rebates. The European Parliament also called on the Commission to propose by June 2010 further EU financial instruments such as: increasing the allocation of European Regional Development Fund money available for energy-efficiency measures to at least 15%, creating, by 2014, an Energy Efficiency Fund financed by the Community budget. According to the MEPs the European Investment Bank and Member States should promote private and public investment in projects increasing the energy efficiency of buildings. Moreover, the European Parliament called for VAT reductions for goods and services related to energy efficiency and renewable energy in buildings.
Under the Commission’s proposal the new provisions would come into force by the end of 2010 for buildings occupied by public authorities, and by the end of January 2012 for all the other buildings. According to the Government the requirement to apply the new measures to buildings occupied by the public by the end of 2010 it is “extremely challenging.”
On 12 June, the Energy Council discussed a Czech EU Presidency progress report on the recast directive. Several Member States are concerned that the draft directive will substantially increase administrative burden and that owners might be discouraged to carry out renovations due to the stricter rules. Moreover, several Member States are particularly concerned with the amendments proposed by the European Parliament for being “overly ambitious and unrealistic.” It remains to be seen out will come out of the negotiations.
