Environmental Law Network International 12/2004 Restructuring Environmental Legislation in the Netherlands Jonathan Verschuuren 1 Introduction In 2002, the newly elected Cabinet in the Netherlands decided to act upon a growing number of complaints from businesses that government legislation is the cause of heavy administrative burdens for companies. According to businesses, this has a negative impact on the economy. The Cabinet promised to reduce the administrative burdens by 25%. Environmental legislation was at the centrepiece of the complaints. In December 2003, the Minister and Secretary of State of Housing, Spatial Planning, and the Environment presented her detailed plans on reducing environmental legislation. Some 75% of all environmental acts, orders in Council and ministerial decrees will be either withdrawn, integrated or changed. This short article gives an overview of these ambitious plans. 2 Reducing rules: why? As in the early 1990’s, the Netherlands experience a strong plea for deregulation, especially from businesses. The latter claim that government rules concerning working conditions, fire resistance, food safety, environmental protection, taxes etc., are too numerous, too complicated, and sometimes even contradictory. In 2002, the newly elected Cabinet announced the reduction of the number of rules, and thus decreasing administrative burdens for businesses, as one of its main goals. The Minister of Housing, Spatial Planning, and the Environment was the first to start a project to restructure the entire legislation in these policy fields (i.e., housing, planning, environment). She formulated six, largely overlapping, goals that are to be achieved:1 limit unnecessary rules and bureaucracy; formulate rules that can be understood by citizens and that relate to problems the way citizens experience them; allow economic development through a consistent and well-ordered set of rules with less procedures and more room for business initiatives; stop impeding decentralized authorities through national legislation; * Prof.dr. Jonathan Verschuuren is a professor of European and Interna- tional Environmental Law at Tilburg University, the Netherlands. For more information, see http://rechten.uvt.nl/verschuuren. 1 Parliamentary Documents II, 2002-2003, 28 600 XI, No. 10, p. 1-2. less rules that are better enforced than today’s rules; simplify EU legislation.2 All of this is supposed not to reduce the level of environmental protection,3 although the Minister admits that it might sometimes be necessary to allow to diverge from environmental quality standards in order to achieve the best possible overall environmental quality.4 3 How has the plan been reached? In a relatively short period of only four months (January-April 2003) a large group of civil servants of the Ministry inventoried and scrutinized all of the approximately 400 acts, orders in Council and ministerial decrees on the three policy fields of the Ministry. An enormous amount of work was carried out. For each piece of regulation, the following aspects were described: the target of the legislation, the relationship to EU law (if any), the nature of the rules, the administrative duties that follow from these rules, and the bottlenecks that had been reported. Then, a small project group decided, on the basis of all the information gathered, for each piece of legislation whether it should be abolished, integrated into an other piece of legislation, changed, or whether it should remain intact. Of the total of 400 acts, orders in Council and ministerial decrees, 100 should be abolished, 100 should be integrated, and another 100 should be amended. In sum, 75% of all legislation will have to be altered in one way or another. This clearly is the largest legislative operation in the environmental policy field we have ever seen in the Netherlands so far. In December 2003, the Minister sent a legislative programme to Parliament, outlining the approach. The proposals were divided into three groups. The first group of proposals are those that have the largest effect as far as reducing administrative burdens is concerned, as well as those that can be carried out relatively easily. These proposals have been marked ‘priority 1’, and will be initiated immediately, and completed between 2004 and 2008. The two other groups of proposals will be initiated at a later stage. ‘Priority 2’ plans are to be initiated while the current Cabinet is still in office (to be completed be2 The Dutch Presidency has selected this target as a priority target, see the Precidency’s website http://www.eu2004.nl. 3 Parliamentary Documents II, 2003-2004, 29 200 XI, No. 7, p. 3. 4 Parliamentary Documents II, 2003-2004, 29 200 XI, No. 7, p. 8. 34 2/2004 tween 2005 and 2009), and ‘priority 3’ plans are to be initiated by the next Cabinet (to be completed in 2008 and 2009). 4 Content of the plan to reduce the number of rules In this short contribution, it is not possible to discuss all the plans that were developed. Instead, three major plans encompassing a large share of Dutch environmental legislation will be discussed: a) integration of legislation, b) abolishment of nonEU-required rules in implementing legislation, and c) integrated license. a) Integration of legislation The entire operation clearly shows that as far as systematizing and integration is concerned, much remains to be improved. To give a simple example: there are no less than twenty orders in Council and ministerial decrees dealing with asbestos, all from a different angle. It is obvious that integrating these pieces of legislation is necessary. At the level of acts, similar improvements can be carried out. Since the enactment of the Environmental Management Act (EMA) in 2003, several sectoral acts have gradually been integrated into the EMA. However, for some reason this process slowed down and eventually almost came to a full stop, with several sectoral acts still (at least partly) remaining in place. Therefore, the Minister announced the plan to complete the integration of environmental acts into the EMA. The Dangerous Substances Act, the Noise Act, the Air Pollution Act and the Soil Protection Act will all be fully integrated in the EMA. Unfortunately, several environmental acts that fall under the competence of other Ministers, such as the Minister of Traffic, Public Works, and Water Management and the Minister of Agriculture, Nature, and Food Quality (for instance, the Pollution of Surface Waters Act, several acts regulating the environmental impact of agriculture, and the Nature Protection Act) will not be integrated. It was decided not to submit any proposals that change existing competencies. The Minister of Housing, Spatial Planning, and the Environment clearly fears resistance of the other Ministers and does not want to jeopardize the entire restructuring programme on competence issues. However, from the point of view of citizens and business corporations this approach is contrary to the ultimate goal of the entire operation, which, of course, is to reduce administrative burdens. From a European perspective, the division of powers and policies regarding environment, nature, and water between three ministries is becoming increasingly difficult as well. Horizon- 35 Environmental Law Network International tal directives, such as the IPPC Directive,5 the Strategic Environmental Assessment Directive 6 and the Environmental Liability Directive 7 are difficult to implement when three separate sets of legislation have to be adapted. One integration project, in my view, is a bridge too far. Under Dutch environmental law, only 25% of all installations that fall within the scope of the EMA have to apply for a permit. All other installations that originally needed an environmental permit have been brought under national regulations. 8 These installations have to comply with environmental rules laid down in an order in Council. They no longer have to apply for a permit to local or regional authorities. The orders in Council have been designed for an entire branch of business, e.g., one for service stations for cars, one for textile cleaning companies, one for recreation complexes, etc. The Minister now has announced to integrate all of these orders in Council into one. Obviously, this will lead to a reduction of the number of orders in Council. However, in my view, such integration will probably only increase administrative burdens for companies. They no longer have their own set of rules that has specifically been designed for their branch of business. Instead, they have to find their way in an order in Council that will probably consist of rather vague and broad rules, rules that apply to a range of diverse activities. Thus, it will be more difficult for them to figure out what it is that the government wants them to do. b) Repeal of rules not required by EU law in implementing legislation A second group of changes to existing environmental legislation that has been proposed concerns legislation that is intended to implement EC Directives. The Cabinet has decided to no longer ‘do more’ in future than EC law requires it to do. The rationale is that simply following the EC Directive is enough, no more ‘extras’ will be added. As a consequence, part of the restructuring plans propose to abolish ‘extras’ that have been put in place in the past as well. A much discussed example is the scoping phase of the environmental impact assessment procedure. Directive 85/337/EEC on the assessment of the effects of certain public and private projects 5 Directive 96/61/EC concerning integrated pollution prevention and control, OJ L 257/26. 6 Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment, OJ L 197/30. 7 Proposal for a Directive on environmental liability with regard to the prevention and remedying of environmental damage, joint text approved by Conciliation Committee, 10 March 2004, cf. http://europa.eu.int/comm/environment/liability/index.htm 8 As a consequence of an earlier deregulation operation dating back to the 1990’s. Environmental Law Network International on the environment, as amended by Directive 97/11/EC, only has a limited provision on the scoping phase, ie the phase during which it is decided what will be the scope of EIA (What will be the main focus of the EIA? What alternatives will be studied? etc.). Art. 5(2) only opens the possibility for the developer to request the competent authority to give an opinion on the information to be supplied by the developer in the EIA. However, in the Netherlands the scoping phase has been further regulated. There is an independent expert committee that, in a procedure involving all relevant actors as well as interested parties, such as NGOs and local residents, formulates directives for the EIA. In this way, it is ensured that (1) no unnecessary information will be gathered, and (2) there will be no discussion on the scope of the EIA afterward, ie during the phase in which the final decision must be reached. The fact that the EIA has been carried out along the directives of an independent expert committee enhances the legitimacy of the EIA. The Minister now has proposed to skip this procedure, again in an effort to reduce administrative burden. And again, it is not certain that such a reduction will be actually achieved. The risk of each and every EIA being questioned in court because wrong alternatives have been studied, or the wrong information has been gathered, is not hypothetical. c) Integrated license Of the entire restructuring programme, the plan to integrate several existing licenses into one has gained most attention. Again, this plan is only limited to licenses that fall under the competence of the Ministry of Housing, Spatial Planning, and Environment, i.e., the environmental permit regulated in the EMA, the building permit regulated in the Housing Act, and some decisions on the basis of planning law, regulated in the Spatial Planning Act. Ideally, a person or a company planning an activity, should only have to apply for one decision, that is reached in one decision-making procedure, with one review procedure in court. To achieve this ideal situation, the Minister has announced to make a start by integrating the decisions just mentioned, although she admits that several other permits will have to be integrated as well (most notably the permit to discharge waste into surface waters under the Pollution of Surface Waters Act, which, as already mentioned, falls under the competence of another Minister). Many authors have already pointed out that this ideal situation will probably not be reached, because there are too many negative consequences.9 For instance, the decision-making 9 P.J.J. van Buuren, De brede VROM-vergunning: een onbereikbaar ideaal, Bouwrecht 2004/2, p. 101; P.C. Gilhuis, Naar minder of naar betere re- 12/2004 process for an environmental permit is quite long (up to six months), as a consequence of the difficult technical questions involved. A building permit, on the other hand, is a relatively easy decision that can be reached within a few weeks. Integrating both permits would mean that the applicant will have to wait for six months before he receives the integrated permit. Maybe the applicant (for instance, a project developer) wants to build a building first, and later decide what kind of business he will lease his building to. These and other complications lead most authors to the conclusion that it is better to provide for a co-ordination procedure (for instance: one court procedure against both decisions at the same time), rather than to come to a full integration.10 5 Does this plan really reduce administrative burdens? In part: yes it does. Integration of legislation can to a certain extent contribute to a more systematic and orderly set of rules. Legislation that is more accessible, can be applied easier. However, it is an illusion to think that there is such a thing as simple environmental legislation. In my view, environmental legislation will always remain complicated. There are several reasons for that. First, regulating environmental issues always involves opposing interests (ecology versus economy). This leads to a certain ambivalence in legal norms. Second, there are rapid technological developments, and also our knowledge of causal relationships between human activities and environmental problems is constantly evolving. Third, there is a strong influence of international and, especially, EU law on national environmental legislation. This results in a constant process of reconciling national law with European and international law. My greatest concern with regard to this huge operation is that little research has been carried out into what exactly the problem is that these plans have to solve. It is clear that there is a broad sense of discontent among businesses concerning the government in general. It is not very clear whether this sense of discontent is actually caused by environmental rules and regulations. As a matter of fact, evaluation of environmental legislation over the past few years, repeatedly shows that businesses have problems with decentralized authorities that have to apply and enforce environmental legislation. There is a serious lack of capacity and expertise here. In the view of the Evaluation Committee gelgeving in het milieurecht? Over herijking van de VROM-regelgeving, Tijdschrift voor Omgevingsrecht 2004/2, p. 44. 10 Ibidem. 34 2/2004 for the Environmental Management Act,11 that carried out twenty evaluation projects over the past four years, the execution, monitoring and enforcement of environmental legislation should be professionalized, rather than to further change environmental legislation. Unfortunately, all of these evaluations were ignored while preparing the restructuring plans. The magnitude of the proposals makes one fear the worst for the level of local governments. Changing 75% of all environmental legislation means that environmental legal practice will change thoroughly: all civil servants involved will have to familiarise themselves with the new legislation. This will, at least during the next 5-8 years and at least on the side of governmental authorities, increase administrative burdens enormously. 6 How does this plan affect the environment? This question is difficult to answer at this moment. We will have to wait and see how the actual texts of new and integrated acts and orders in Council will be formulated. According to the Minister and the Secretary of State, the plans do not reduce the level of protection. However, taking away procedural or 11 All the reports of this Committee can be downloaded from its website (in Dutch) at http://www.ecwm.nl. 35 Environmental Law Network International substantive safeguards (see the example of the regulated scoping phase of the EIA procedure) might lead to decision-making in which there is less room for a cautious and precise consideration of the environmental interests involved. 7 Conclusion In the Netherlands there are almost 400 acts, orders in Council and ministerial decrees on the policy field of housing, planning and the environment. This is quite a large number. It was a wise decision to verify whether all of these are still necessary, and whether or not an integration of legislation is possible. The Ministry of Housing, Spatial Planning, and the Environment has done an impressive job by scrutinizing all 400 in only four months. However, the proposals that now have been sent to Parliament are too far reaching to be simply based on this scrutiny. Moreover, there is no clear insight into the nature of the problem. The Ministry has come up with a solution without knowing what the exact problem is. What exactly is an administrative burden? How much of this burden is actually related to a legal rule in a specific piece of legislation? Do businesses want less rules, or do they want less government interference? Without these questions answered, it is possible that in 2009, when all changes must have been carried out, the problem still exists.
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