1.in Article 1, the following paragraph is added:‘This Regulation provides for the creation of a financial facility (the facility) to support energy efficiency and renewable energy initiatives.’;
2.Article 3 is amended as follows:
(a)paragraph 2 is replaced by the following:‘2.Individual legal commitments under Chapter II implementing the budgetary commitments made in 2009 and 2010 shall be made by 31 December 2010. Individual legal commitments under Chapter IIa shall be made by 31 March 2011.’;
(b)the following paragraph is added:‘3.The financial intermediaries described in Annex II shall endeavour to allocate all the funding from the Union contribution available in the facility to investment projects and to technical assistance for energy efficiency and renewable energy projects by 31 March 2014. No funding from the Union contribution shall be allocated after that date. All funding from the Union contribution not allocated by the financial intermediaries by 31 March 2014 shall be returned to the general budget of the Union. The funding from the Union contribution allocated to investment projects shall remain invested for a specified length of time that may not extend beyond 31 March 2034. The Union shall be entitled to returns on its investment in the facility throughout the lifetime of the facility, in proportion to its contribution to the facility and in accordance with its shareholder rights.’;
3.the following Chapter is inserted:‘CHAPTER IIaFINANCIAL FACILITYArticle 21aFunding that cannot be committed under Chapter II1.Funding which according to Article 3(2) cannot be subject to individual legal commitments under Chapter II for an amount of EUR 146344644,50 shall be for the facility referred to in the fourth paragraph of Article 1, for the purpose of developing suitable funding instruments in cooperation with financial institutions, so as to give a major stimulus to energy efficiency projects and projects for the exploitation of renewable energy sources.2.The facility shall be implemented in compliance with Annex II. Article 23(1) shall not apply to the facility.3.The Union’s exposure to the facility, including management fees and other eligible costs, shall be limited to the amount of the Union contribution to that facility specified in paragraph 1, and there shall be no further liability on the general budget of the Union.’;
4.Article 22 is deleted;
5.Article 23 is amended as follows:
(a)paragraph 2 is replaced by the following:‘2.EEPR assistance shall cover only project-related expenditure incurred by the beneficiaries and, as regards projects under Article 9, also by third parties responsible for the implementation of a project. Expenditure incurred under Chapter II may be eligible as from 13 July 2009.’;
(b)the following paragraph is inserted:‘2a.Financial assistance given under Chapter IIa shall cover expenditure relating to investment projects and to technical assistance for energy efficiency and renewable energy projects incurred by the beneficiaries described in point 3 of Part A of Annex II. Such expenditure may be eligible as from 1 January 2011.’;
6.Article 27 is amended as follows:
(a)the following paragraph is inserted:‘1a.By 30 June 2013 the Commission shall submit to the European Parliament and the Council a mid-term evaluation report on the measures taken under Chapter IIa focusing in particular on:
(a)the cost-effectiveness, leverage effect and additionality demonstrated by the facility;
(b)evidence of sound financial management;
(c)the extent to which the facility has achieved the objectives set out in this Regulation;
(d)the extent to which continued support under the facility for projects relating to energy efficiency and energy from renewable sources is required.
The mid-term evaluation report shall, if appropriate, and in particular if the Commission’s assessment of the measures taken under Chapter IIa is positive, be accompanied by a legislative proposal for the continuation of the facility.’;
(b)paragraph 3 is replaced by the following:‘3.The Commission shall present to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions an evaluation report on the results achieved by the EEPR and in accordance with Article 27(4) of the Financial Regulation.’;
7.in Article 28, the following paragraph is added:‘The report shall include information about all overhead costs related to the establishment and implementation of the facility set up under Chapter IIa.’;
8.the Annex is renamed ‘Annex I’ and the following Annex is added: