Authorizes The Government To Pass The Legal Framework Of Access And Pursue The Activities Of Production Of Electrical Energy From The Energy Of The Waves

Original Language Title: Autoriza o Governo a aprovar o regime jurídico de acesso e exercício das actividades de produção de energia eléctrica a partir da energia das ondas

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c3342776244457a4d5331594c6d527659773d3d&fich=ppl131-X.doc&Inline=false

1 PROPOSAL of law No. 131/X explanatory statement the transposition into national law of Directive 2001/77 no/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources (RES) in the internal electricity market, came to consecrate the recognition of the priority given by the European Union and the Member States to promote the increase of the contribution of this kind of primary sources for the production of electric power. Indeed, the increased use of FER is an important contribution not only to the security of supply as well as to tackle climate change by reducing emissions of greenhouse gases, constituting an important element of the measures necessary to comply with the Kyoto Protocol. The national strategy for the sea, approved by resolution of the Council of Ministers No. 163/2006 of 12 December, as well as the national sustainable development Strategy recently approved by the Council of Ministers, show the potential of sea resources and your reflection on the economic development and welfare of society, and the importance of renewable energies for the trajectory of sustained growth of the Country. For your part, also the National Energy Strategy, approved by the resolution of the Council of Ministers No. 169/2005, of 24 October, established as one of the strategic guidelines, enhancing the use of renewable energy sources. In view of the use of renewable energy, and with the purpose of encouraging research and technological development required the establishment of applicable equipment to produce electricity from sea waves energy, the Government, by joint decree No. 324/2006, of March 24, created a working group which was tasked to propose the necessary legislative measures to 2 promote the use of renewable energy in particular the maritime wave. The development of the use of the waves as a source of electricity, is thus an important contribution to sustained economic growth and to the security of energy supply, whereas the Government justified the need for adoption of a legal framework for the management, access to and pursuit of the activity of production of electrical energy from that energy source. Such a system requires the use of the maritime public domain goods in an area of limited intervention, as well as the definition of the requirements of access and pursuit of the activity of production of electrical energy through the energy of the waves. In view of the above, considering the materiality of production of electricity from RES, it is necessary to provide the managing body of the intervention zone bounded to a set of credentials that enable it to achieve the objectives proposed by the Government. It is appropriate, therefore, the adoption of a set of exceptional measures deemed essential to the production of electricity from the energy of the waves, such as the establishment of specific rules to make quickly and effectively the process of establishment of easements and expropriations necessary for the establishment of infrastructures and facilities members to pursue the activity in question.

At the same time, the Government is understood to be necessary to carry out adjustments to the regime against-ordenacional current to ensure general security conditions in the use of structures or equipment intended for the use of the energy of the waves, trying to avoid and prevent the occurrence of situations which, for reasons of failure to comply with the legally established security requirements, resulting in significant damage. Is so essential, in the light of the principle of accountability that should guide the production of electricity from renewable energy sources, increase the amount of € 200,000.00 the maximum value of the fines applicable in cases of ordering by use of structures or equipment that do not meet the safety requirements, including the compulsory civil liability insurance Since the maximum value of fines applicable to legal persons in article 17 of the General system of administrative offences it is inappropriate, in particular by being 3 whimsy the consequences which may arise from the illicit practice against-ordenacional concerned. However, whereas the system of goods in the public domain, interventions in soil for reasons of public interest, the expropriations and the general regime of the social ordering unlawful merely fall, generally, under points v), l) and d) of paragraph 1 of article 165 of the Constitution, the proposed regulatory intervention needs to be approved by Parliament.

So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: Article 1 subject-matter is granted the Government permission to establish the legal framework for the use of the goods in the public domain, including the use of territorial waters, for the production of electrical energy from the energy of the waves of the sea in an area bounded to the effect.

Article 2 purpose and extent


1-the authorization referred to in the preceding article shall be granted in order to create a system of use of goods in the public domain, as well as the use of territorial waters, for the production of electricity from the waves of the sea, setting the access requirements and for the exercise of this activity in area enclosed. 2-the legal regime that the Government is authorized to establish by Ordinance, as provided for in the previous article, sets: a) conditions of use of the maritime public domain goods for the production of electricity from the waves of the sea; 4 b) conditions of use of public domain for harnessing wave energy whose title assignment procedure of use has started with the Port and maritime transport Institute, I.P., pursuant to Decree-Law No. 468/71, of 5 November and Decree-Law No. 254/99, of 7 July, until 31 December 2006; c) the scheme of access to and pursuit of the activity of production of electrical energy from the energy of the waves in the area bounded to the end, with the ability to predict changes to your dimension; d) the operating regime of the area intended for the pursuit of the activity of production of electrical energy from the energy of the waves; and) establish specific rules to make quickly and effectively the process of establishment of easements and expropriations necessary for the establishment of infrastructure and facilities necessary for the pursuit of the activity of production of electrical energy from the energy of the waves in the area bounded; f) Increase to the amount of € 200,000.00 maximum penalties applicable to legal persons in cases of alleged infringement by use of structures or equipment that do not meet the safety requirements, including the compulsory civil liability insurance as well as in cases of failure to comply with the requirements of substations and electrical network of public service; g) expiry, without any compensation or damages, securities of occupation of the public maritime domain held by the promoters of the projects of harnessing wave energy to electricity production are under way, if not required the adaptation of such bonds within six months from the date of acceptance of the project within the area bounded to the production of electric energy from the energy of the waves of the sea.

5 article 3 Duration the present legislative authorization lasts for 90 days.

Seen and approved by the Council of Ministers of 25 January 2007 the Prime Minister the Minister of Parliamentary Affairs Minister Presidency 6 the transposition into national law of Directive 2001/77 no/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market , came to consecrate the recognition of the priority given by the European Union and the Member States to promote the increase of the contribution of this kind of primary sources for the production of electrical energy. The need to adopt policies on maritime transport, coastal regions of renewable energies, fisheries and marine environment, among others, so interconnected, multidisciplinary, integrated and sustained, which take into account the importance of the oceans and seas represent for companies, embodied in the potential of resources that can provide and which contribute to the welfare and social and economic development , was decisive for the elaboration of the national strategy for the sea, approved by resolution of the Council of Ministers No. 163/2006 of 12 December, and the green paper of the European Commission, which presents the objectives and lines of action of the future European maritime policy. The increased use of renewable energy sources constitutes an important contribution not only to the security of supply as well as to tackle climate change by reducing emissions of greenhouse gases, constituting an important element of the measures necessary to comply with the Kyoto Protocol. The resolution of the Council of Ministers approved the national strategy for Sustainable Development assumes as design «resume a sustained growth path to make Portugal, on the horizon of 2015, one of the most competitive and attractive countries of the European Union, within a framework of high level of economic, social and environmental development and social responsibility, assuming one of the objectives of particular relevance in the context of renewable energy.

In these terms, the Government published the Joint Decree No. 324/2006, of March 24, with a view to promoting the development of the use of the maritime wave energy, whose potential is estimated to reach 5 GW, might constitute an important contribution not only to the security of supply as well as for the creation of cluster 1 7 with high potential and involvement of national competence centres with scientific and technical know internationally competitive. The holding in public service scheme, where will be promoted the development of the use of the maritime wave lacks title issued by the Portuguese State, for that matters subject to occupation, use and exploitation of the sites selected for the production of electrical energy from the waves of the sea to the existing legal regime. Thus, taking into account the need to foster the installation in Portugal of a renewable source still in the early stages of development, it is also important to streamline licensing procedures. With this aim, a selected Pilot Area where it intends to promote technological development and installation, demonstration of pre-commercial or commercial concept of harnessing wave energy, attracting to the country promoting companies and producers of technology. Likewise, sought to lay the groundwork for a fee schedule which aims to promote the development and use of the wave energy for power production purposes. Were heard the energy services regulatory authority, the Instituto de Seguros de Portugal and the Commission in the public domain.

So: the use of legislative authorization granted by law no [.] of [.], and in accordance with point (b)) of paragraph 1 of article 198 of the Constitution, the Government decrees the following: chapter I General provisions Article 1 subject-matter

This Decree-Law establishes the legal regime for use of the goods in the public domain, including the use of territorial waters, for the production of electrical energy from the energy of the waves of the sea in the Pilot Zone bounded in annex I to this Decree-Law 8 and that it is an integral part, as well as the management regime, access to and pursuit of the activities mentioned.

Article 2 scope the provisions of this Ordinance apply to infrastructure located within the Pilot Area, as well as the electrical infrastructure required for connection to the power supply.

Article 3 definitions for the purposes of this Decree-Law: (a)) ' use of the energy of the waves ', the transformation of the energy of the waves in other forms of energy, so that they can be used in human activities; b) ' industrial Cluster, set of business activities with specific technological skills that provide equipment, components or services for the construction and operation of equipment intended for the production of electrical energy from the energy of the waves; c) «wave», energy transported by the waves of the ocean; d) ' establishment ' license, title issued by the managing body which grants the sponsor the right to install the necessary infrastructure to produce electricity; e) ' operating licence ', title issued by the managing body which grants the sponsor the right to delivery of the electrical energy produced to the public electricity grid; f) ' energy Park ' set of equipment for the pursuit of activities related to the exploitation of wave energy in pre-commercial or commercial arrangements; g) ' installed capacity ', power plant, measured in MW, 9 corresponding to the arithmetic sum of the power production equipment for a particular installation; h) ' project ', set of documents that describe technically a set of facilities and the way these are deployed at sea; I) ' Promoter ' means a legal person that proposes to build and explore in a Pilot installation Area of harnessing wave energy to electricity production; j) ' Prototype ', experimental device for showcasing a concept for electrical energy production based on wave energy.

Article 4 Pilot Area 1-the Pilot Zone is the delimited maritime area under the sovereignty or national jurisdiction of water depth greater than 30 m (offshore), which seeks to promote the production of electricity based on wave energy, as well as perform other activities in accordance with the procedure provided for in this decree-law. 2-in the Pilot Area can be developed activities other than the production of electric energy from the energy of the waves of the sea, since the Fund Manager comment favorably, the activities subject to energy production and use are permitted in accordance with the legal regime of use of water resources. 3-With the identification and establishment of the corridor connecting the Pilot Zone substation of electrical connection to public electricity grid this becomes part of the Pilot Zone. 4-whenever it is technically justified can constitute more than a corridor connecting the Pilot Zone substation of electrical connection. 5-within 10 years after your Constitution, the delimitation of the Pilot Zone is reviewed, and your area be reduced depending on the authorized uses for the same, so as to include only the area required, or foreseeably required, to pursue activities licensed by the Fund Manager. 6-the reduction of the area of the Pilot Area and its new limits, which cannot be outside the perimeter set out in annex I to this Ordinance, are defined by Decree-Law 10. 7-the detailed Pilot zone consists of a map, scale 1:100000, whose original is kept in the possession of the Fund Manager, and can be consulted by any interested party.

Article 5 award of public service 1-the concession for the operation of the Pilot Zone is assigned to a management company subject to concession contract, in which grant, in representation of the State, the Member of Government responsible for energy. 2-granting is exerted on public service scheme and its activities and facilities that integrate considered, for all purposes of public utility. 3-the managing body of the Pilot Zone is chosen by public tender procedure, unless it is attributed by an entity under the effective control of the State. 4-granting public service Pilot zone includes the use of the band corresponding to the hallway for deployment of infrastructures for public mains, when your location is set, as well as the use of the maritime public domain under concession, attributable, in accordance with law No. 58/2005, of 29 December. 5-the bases of the grant of the Pilot Zone are laid down in Decree-law.

Chapter II article 6 Pilot Production Area of electricity 1-in the Pilot Zone can be installed prototypes and wave energy parks. 2-the maximum values corresponding to the sum of the installed capacity for each of the demonstration of concept schemes, pre-commercial and commercial are defined by Ordinance of 11 Member of the Government responsible for energy.

Article 7 receipt of electric power-1 the concessionaire of the electricity distribution network provides the construction, with the pilot Zone of the necessary infrastructure to receive electric power provided by the promoters, to a global power up to 80 MW. 2-the concessionaire of the national transport network provides the construction, with the pilot Zone of the necessary infrastructure to receive electric power provided by the promoters, to a global power up to 250 MW. 3-the costs of investment in transmission and distribution networks are supported, respectively, by the dealers referred to in paragraphs 1 and 2 of this article, minus any contributions of public funds and are considered for the purposes of fixing tariffs for use of the network. 4-for the purposes of the preceding paragraph, the dealers give knowledge of the value of the investment in the infrastructure provided for in paragraphs 1 and 2 to an opinion by the Directorate General of Geology and energy (DGGE), and final approval by the regulatory authority of energy services (ERSE).

Article 8 link extensions


1-the construction of extensions of system connection to the receiver network is the responsibility of the respective promoters installed in the Pilot Zone, you must submit the corresponding project under the licensing process. 2-for the purposes of paragraph 1, the managing body identifies and promotes the establishment of one or more runners since the Pilot Zone to the receiving station of electric power, where are installed one or more infrastructure through which must pass the binding extensions.

12 article 9 mains connection 1-the managing body promotes competent authorities the identification and establishment of one or more runners that allow the connection of the Pilot Zone to receive electricity substations. 2-the runners referred to in the preceding paragraph include a protection zone and are sized to allow the connection of the entire infrastructure of electricity production in Pilot Zone, on your maximum occupancy, the public electricity grid. 3-the managing body to promote the construction and maintenance of the infrastructures necessary for the use of the Pilot Zone connection corridors to the public electricity network, as well as the definition and monitoring of the conditions of your use.

Article 10 procedure for mains connection For compliance with the provisions of the preceding article, is subject to the following procedure for defining the location of power lines and infrastructure necessary for delivery of the electrical energy produced by the promoters in substation referred to in paragraph 1 of article 7: a) the Fund Manager identifies together with the entity responsible for the construction of the substation electricity reception location that brings together the best conditions for construction of the substation and should indicate, at least, an alternate location; b) once identified the construction site of the substation, the Fund Manager identifies the best path to the Hall of binding, and should also identify alternative paths, taking into consideration minimizing negative impacts arising from the establishment, use and conservation of the Hall; c) the managing body promotes the adoption of the Hall with the Member of the Government which gives the public service concession.

13 Chapter III management company Pilot zone article 11 competences are competences of the managing body of the Pilot Zone: a) license the installation of prototypes and wave energy parks in areas of the Pilot Zone, in accordance with the arrangements provided for in this Decree-Law; b) License changes, modifications and extensions of the wave energy parks already installed in the Pilot Area; c) Promote and monitor the activities of monitoring, testing, installation and operation of prototypes and wave energy parks in Pilot Area; d) Accompany the operations of temporary or permanent removal of wave energy with a view to the safety of the Pilot Area; and) promote the creation, maintenance and updating of common infrastructures in the Pilot Zone, including the mains connection, the nautical infrastructures to support the installation and maintenance of parks and the wave energy of surveillance and security; f) promote environmental geophysics and characterization of the Pilot Zone, ensuring access to public data obtained through geographical information system in managing body, as well as the identification, mapping and geophysical and environmental characterization of other zones with appropriate characteristics for the use of wave energy, in conjunction with the other entities concerned with planning and land use planning of maritime spaces; g) Inform the competent authorities, in particular the DGGE, the water Institute, i. p. (INAG), the administration of the river basin district (ARH) territorial jurisdiction, the Portuguese Environment Agency (APA), the Port and maritime transport Institute, i. p. (ENIMEN), the 14 Directorate-General Maritime Authority (DGAM) and the Directorate-General for fisheries and aquaculture (DGPA), on the outcome of experiments carried out with regard to energy produced , production costs, environmental impacts, safety issues, contributing to the creation of a national cluster and other relevant aspects; h) Promote dissemination and technical training in the area of environmental and socio-economic impacts; I) Propose the value of tariffs to be applied to projects developed in demonstration of concept schemes, pre-commercial and commercial; j) Ensure adequate mechanisms for the dissemination and promotion of the Pilot Zone at national and international level.

Article 12 Recipes Are recipes of the managing body: a) the sums received by way of subsidy on the costs of geophysical and environmental characterization of the Pilot Zone infrastructure and implementation of monitoring programmes of prototypes and wave energy parks, within the framework of national support programmes, community or other; (b) the amounts arising from the issue) of establishment licences; (c)) the amounts corresponding to the value of the annuities paid by the promoters; d) funds resulting from the provision of services to promoters or otherwise, within or outside of the pilot; and) the product borrowed funds for the exercise of your activity; f) subsidies and donations that may be assigned.

Chapter IV system of easements and Servitudes and expropriations 15 article 13 expropriation 1-the managing body may establish easements and request expropriation for public utility of real estate and inherent rights necessary for your objects and the pursuit of its purposes. 2-The expropriations promoted by management company have urgency. 3-the competence for the Declaration of public utility of expropriations and administrative obligations belongs to the Member of Government responsible for energy.

Article 14 subject to the easements 1-easements may be established in accordance with this decree-law, rustic or urban buildings which have not been the subject of expropriation or purchase by via for infrastructure deployment, negotiating necessary for achieving the purposes of the Fund Manager, in particular for the implementation of the infrastructure for the extensions installation connection to public electricity network. 2-The servitudes established under this Ordinance may not harm existing military obligations.

Article 15 contents of easements


The creation of easements for the deployment of the infrastructure necessary for the attainment of the purposes of the Fund Manager implies the following restrictions: a) the ground cannot be plowed, or dug at a depth of more than 50 cm; b) the planting of trees or shrubs; c) is prohibited the construction of any kind.

16 article 16 Compensation the amount of compensation to be allocated to the holders of real estate expropriated or subject to easements is determined by mutual agreement between the parties or, in the absence of agreement, by arbitration in accordance with the provisions of the following article.

Article 17 1 Arbitration-Any interested party can request the managing body the Constitution of arbitration. 2-the arbitration is conducted by a Commission consisting of three arbitrators, one arbitrator appointed by each of the parties and the third chosen by those. 3-the holder of the property mortgaged or expropriated is notified by the management company by registered letter with acknowledgement of receipt, when known, or by edicts, in other cases, for within five days, indicate your referee. 4-if exceeded the time limit referred to in the preceding paragraph without the holder of the property mortgaged or expropriated have designated your referee, or in cases where there is no agreement on the choice of the third arbitrator, the designation of this is carried out in accordance with code of Expropriations. 5-The referees must start its work within 30 days from the date of appointment. 6-the decision of the Arbitration Commission shall be taken by a majority or, it is not possible to obtain it that way, will count as such, the arithmetic average of the most reports coming, or the intermediate report if the differences are equal.

Article 18 extinction of servitudes easements referred to in this decree-law shall expire with the termination of all 17 activities therefor.

Article 19 of the Fund Manager Charges 1-payment of damages resulting from the creation of easements or expropriation shall be in charge of the Fund Manager. 2-the registration of easements referred to in this Decree-Law on the competent land registry is the responsibility and burden of the Fund Manager.

Article 20 subsidiary Regime In all that is not expressly provided for in this chapter relating to expropriations and easements, shall apply, mutatis mutandis, the conditions contained in the code of Expropriations.

Chapter V Regime and conditions for access to and pursuit of the activity article 21 exercise regimen of activities 1-the activity of production of electrical energy from the energy of the waves can be conducted in one of the following schemes: the demonstration of concept Scheme); b) pre-commercial Regime; c) Trade Regime. 2-the demonstration scheme concept is one that undergoes an individual project, presented in accordance with this decree-law, in which the Prosecutor develops your activity in order to demonstrate that a given concept, in whole or in part groundbreaking, of harnessing wave energy to electricity 18 production has the potential to be technically and economically feasible or that can translate into a significant enrichment of the technical or scientific knowledge. 3-the pre-commercial scheme corresponds to the phase of exploitation of a particular concept of harnessing wave energy to electricity production whose potential of technical and economic feasibility is already shown but not reached yet the degree of maturity or enhancement that allows your economic self-sufficiency. 4-the trade regime corresponds to the phase of exploitation of a particular concept of harnessing wave energy to produce electricity whose technology is in a State of maturity that allows commercial exploitation.

Article 22 1 Access-the access to the activity of production of electrical energy in any one of the procedures provided for in paragraph 1 of the preceding article is created by establishment licence and operating licence issued by the managing body. 2-the establishment licence authorizes the Prosecutor to initiate the installation of infrastructure for energy production and the operating licence authorizes the Prosecutor to inject the energy produced to the public electricity grid. 3-the validity of licences issued may be subject to verification or maintenance of a certain condition.

Article 23 1-access requirements Any legal person may apply for the license needed to develop projects in the Pilot Zone, in any one of the procedures referred to in article 21, provided that evidence to the managing body that has technical, economic and financial capacity to develop the proposed project and check: 19 a) security of the project installation and operation phases; (b)) the potential of the project to achieve an industrial solution, verified by an independent entity; c) the ability of technology converge to economically competitive costs or technically robust solutions, verified by an independent entity; (d)) that the project does not have environmental implications, and collapsible problem views to this end submit an environmental impact study. 2-the management company may refuse the draft if it considers that: (a)) there is no availability of space in the Pilot Area; b) there is no availability of power, in the case of a project for the production of electrical energy; c) deferral of the proposed project may lead to a situation of conflict with other projects already approved for the Pilot Zone.

Article 24 grounds for refusal

1-the management company may refuse the license allocation to projects when there is any of the requirements in paragraph 1 of the preceding article with regard to the Prosecutor or to the project. 2-Can still be refused Attribution license for installation on pilot projects in Area of demonstration of concept:) When the technology is considered, by the management company, as viable for exploration in the pre-commercial or commercial arrangements; (b)) when the project does not have sufficient merit, in particular: i) in the case of technology duly substantiated, for not having been previously studied by credible entities through mathematical and experimental means, with a view to demonstrating your viability for energy production; II) When the security aspects have not been adequately considered or raise reasonable doubt; III) where there are reasonable doubts as to the potential for achieving a 20 industrial solution. 3-Can also be refused the award installation license in the Pilot Area of pre-commercial or commercial arrangements projects: a) When is insufficient availability of space in the Pilot Area; b) When is insufficient power availability of connection; c) When acceptance of the project may lead to a situation of conflict with other uses or projects already installed or in the process of installation in Pilot Area; d) when it is clearly insufficient evidence of the ability of technology converge to economically competitive costs or technically robust solutions; 4-the managing body to establish the regulation of access to the area a pilot demonstration of concept schemes, pre-commercial and commercial.

Article 25 1 Deadlines-the period of validity of licences allocated by the Fund Manager will be that the record, with respect to the provisions of this Ordinance and other applicable law and may not in any circumstances exceed 35 years. 2-the period of validity of the permit to operate for demonstration of concept is of 5 years and may be extended, by a decision of the Fund Manager, for a further period of 2 years the reasoned request of the Prosecutor, presented until six months before the expiry of the time limit. 3-the period of validity of the licence for the production of electrical energy in the pre-commercial or commercial schemes is 25 years and may be extended, by a decision of the managing body, after obtained a favourable opinion of the DGGE, binding two additional periods of 5 years, the duly motivated request of the Prosecutor, presented until six months before the expiry of the time limit. 4-where is authorized to change, modification or extension of an existing installation the period of validity of the licence may be extended taking into account the investment made 21, the request of the Prosecutor and upon reasoned decision of the Fund Manager. 5-The extensions referred to in the preceding paragraphs shall be granted if, at the date of the request, are fulfilled by sponsor in the manner provided for in this decree-law or others that you succeed, and these remain during the period of the corresponding permit. 6-the periods referred to in the preceding paragraphs and their extensions shall not exceed the maximum term of the grant referred to in article 5 of this decree-law, getting senile automatically with the term of the lease.

Article 26 exploration in demo regime concept During the demonstration phase of concept the Prosecutor is obliged to develop your activity by observing the conditions of its licence.

Article 27 exploration in pre-commercial regime 1 – exploration in pre-commercial scheme is created by license issued by the managing body at the request of the person concerned and must respect the access requirements set out in article 23 as well as those which are set by the managing body taking into account the specific features of the proposed technology. 2-the licence conditions will be made in its title and your compliance with and maintenance are conditions of validity of same. 3-the licenses allocated in pre-commercial regime cannot holder, in your entirety, an installed capacity greater than the value set in order of the Member of Government responsible for the economy.

22 article 28 exploration in trade arrangements the arrangements laid down in the previous article shall apply, mutatis mutandis and subject to the provisions of the following article, the establishment and allocation of operating licences in trade regime.

Chapter VI Licensing article 29 establishment permit application

1-the promoters interested in developing projects for the production of electrical energy from the energy of the waves must submit an application to the Fund Manager to request duly instructed licensing under the conditions laid down in the following paragraphs. 2-the application must contain the complete identification of the applicant and be accompanied by the following elements: the Identification of the system in that) it intends to operate; b) demarcation of area of interest; c) programme of work, to your duration, cost estimation and financial coverage provided; d) Commitment concerning the guarantees to be provided; and demonstrative of your Elements) technical, economic and financial capabilities; f) certificate demonstrating the tax status regularized, if the applicant has already made proves to have a permanent establishment, which may be waived when the person concerned, by means of authorization provided pursuant to law, allow the managing body the query; g) demonstrative Elements of the contribution of the project to the creation of an industrial cluster associated with and the involvement of national expertise centres, if any. 23 3-the applicant must still deliver the managing body the documentary elements about which concerns mandatory consultation with supervisory authorities on areas which may interfere with installations, in particular: (a)) draft of the electrical installations and other elements set out in annex II of this decree-law, which is an integral part; b) assignment project, in order to ensure the safety of navigation, in duplicate; c) Project containing the plans and construction drawings of the structures and activity support installation location, in duplicate; (d) environmental impact study) drawn up in accordance with the provisions of applicable legislation and environmental monitoring plan. 4-the Fund Manager refers the elements mentioned in the preceding paragraph to the DGGE, ARH territorial jurisdiction, the local organ of the DGAM, to ENIMEN and DGPA to an opinion with binding. 5-the opinion of the entities referred to in the preceding paragraph shall be issued within 45 days from the date on which the management company have your issue, assuming favorable if not issued within the prescribed period. 6-No later than 20 days after receipt of the documents sent by the managing body, the entities referred to in paragraph 4 may apply to the District Attorney, for once, to provide further information or documents which they consider necessary for the issuing of the opinion requested, giving knowledge to the managing body of the request. 7-the request the provision of further information or the production of documents pursuant to paragraph 1 determines the suspension of the time limit laid down in paragraph 4. 8-for each public mains, the managing body gives knowledge to the concessionaire of the distribution network or transport network, as the case may be, of power, voltage and other characteristics of the installation, requesting the relevant link. 9-are also consulted other entities whose opinion, in accordance with the applicable legislation and good practice, is indispensable for the 24 instruction process. 10-in the cases referred to in the preceding paragraph, the promoters are exempted from compliance with the established in point (a)) of paragraph 3 and paragraph 5 of this article.

Article 30 tendering 1-access to the Pilot Zone in trade regime is done by tender, and may apply for promoters to propose to install technologies for the exploitation of wave power recognized by the Fund Manager. 2-the contest will be launched on the initiative of the managing body following the identification of an opportunity to farm or applications for assignment of license in commercial arrangements. 3-the terms and conditions of the invitation to tender referred to in the preceding paragraph shall be prepared by the management company with the launch of the contest and their respective terms dependent on prior authorisation of the Member of Government responsible for energy. 4-The competitions referred to in the preceding paragraphs are carried out with respect for the General principles of public procurement. 5-following public tender that has been desert, the managing body may authorise access to the Pilot Zone in direct trade regime, or renew the title using the previous holder, if any.

Article 31 tendering following request 1-licensing requests for access to the Pilot Zone in trade regime submitted by promoters and considered viable by the Fund Manager, are advertised through the posting of notices and publication in two numbers followed by daily newspaper of national expansion. 2-within 30 days as of the Monday publication referred to in the preceding paragraph, can other stakeholders require the license issue with the subject matter and purpose 25 advertised. 3-after the period referred to in the preceding paragraph without being submitted for competitors, the original request is appreciated and decided. 4-Case will be presented, within the time limit referred to in paragraph 2, one or more requests for assignment of license with the purpose advertised pursuant to paragraph 1, the managing body shall initiate bankruptcy proceedings. 5-in the case referred to in the preceding paragraph, the first applicant enjoys the right of preference since that report, within 10 days of notification of the choice of the proposal, subject to the conditions of the proposal that will be selected.

Environmental impact assessment article 32

1-the licensing of electrical energy production projects from the energy of the waves in the Pilot Zone that are not subject to environmental impact assessment is preceded by the presentation of an environmental impact study by the Prosecutor considering energy and environmental policies in force. 2-the study of environmental impacts of a project for harnessing wave energy in the Pilot Zone can evaluate the environmental impacts result from the installation of a power higher than the intended to install through this project. 3-The environmental impact of a particular technology and power to install in the Pilot Zone can be further assessed through the presentation of a study by the Fund Manager, by business associations or producers of equipment for harnessing wave energy. 4-do not require submission of environmental impact study projects for harnessing wave energy in the Pilot Zone using technologies and manage the installation of accumulated powers that have already been assessed by one of the studies referred to in paragraphs 2 and 3 of this article, being however prosecutors forced the submission of the environmental monitoring plan of work and compliance with minimization , and compensation stipulated monitoring plans for the technology, competing the managing body to coordinate these actions. 26 article 33 consequences of favourable environmental assessment 1-for projects that, under applicable law, lack of procedure of Environmental impact assessment, environmental impact statement (day) favorable or favorable conditionally is sufficient condition for: a) the waiver of issuance of the authorization referred to in (a)) of paragraph 2 of article 4 of Decree-Law No. 93/90 , from March 19, as amended by Decree-Law No. 180/2006 of 6 September, in cases of projects to locate in bounded areas as National ecological reserve (REN); (b)) approbation on the part of the competent REGIONAL COORDINATION in cases where force the transitional regime applicable to areas that have not yet been the subject of delimitation of REN. 2-For those projects which, pursuant to this Ordinance, requiring environmental impact assessment procedure, the favourable decision or conditionally favorable about the environmental impact study by the Member of Government responsible for the area of the environment, determines the application of the preceding paragraph.

Article 34 Assignment 1-establishment license within 20 days of receipt of the last opinion of the entities consulted, the managing body appreciates the evidence presented by the Prosecutor, requesting, for once, the other elements in your understanding be necessary for examination of the application. 2-the establishment licence is issued by the management company within 45 days, as the case may be, from the receipt of the final opinion of the entities consulted or documentary elements requested additional to the Prosecutor. 3-the License incorporates all the requirements imposed by the entities consulted and considered necessary by the management company, including compliance with 27 of the deadline for installation of the infrastructure necessary for the production of energy from waves. 4-the issuance of the licence is subject to the provision of collateral in the form of bank guarantee to the first request, issued in favour of the Fund Manager, in the amount of 10% of the planned investment by the sponsor. 5-When duly justified, the managing body may extend the time limit for the installation of the infrastructure necessary for the production of energy.

Article 35 1 Survey-the holder of the establishment licence for the production of electrical energy must request the DGGE under regulation of licences for electrical installations (RLIE), carrying out the survey with the minimum of 20 days prior to the date set for the start of the operation, describing, in report annexed to the application, the State of compliance with the conditions in its licence. 2-the holder of the establishment licence referred to in paragraph 2 of article 4, as well as license holders of establishment referred to in paragraph 1 of article 4 whose project does not contemplate the mains connection must request the DGGE performing survey in a period not exceeding 30 days. 3-the survey is conducted by DGGE, which may be accompanied by a representative of the dealership of RNT, or of the RND, as the case may be, and of other entities who have been sent the licensing process, as well as by other technicians or experts, with a view to verifying the compliance of the installation with the approved project. 4-for the purposes of the preceding paragraph, the DGGE marks the date and time of the completion of the inspection and shall notify the licensee and the entities that you want to designate a representative to monitor the survey, with the advance of 15 days. 5-in situations where the mains connection inspection report is prepared in accordance with RLIE, which shall include, inter alia, the verification that the facility is or not in a position to be authorized to 28 exploration and, if applicable, the measures to be taken by the licensee. 6-in the remaining situations the inspection report should contain, inter alia, the verification of compliance with the draft submitted in the application for an establishment licence. 7-When in previous survey have been imposed and conditions set deadline for your accomplishment, the DGGE performs new survey your compliance verification, and may perform a last inspection if non-compliance with the measures persist previously imposed. 8-If after carrying out the surveys referred to in the preceding paragraph if it finds that the failure to comply with the conditions imposed on the promoter, the assigned operating licence is revoked. 9-Inspected the installation, the managing body shall issue the permit to operate.

Article 36 Revocation of licences

1-establishment and exploitation licenses quenching by expiry or revocation. 2-Are the reasons for revocation of licenses: a) the expiry of the term of validity fixed; b) extinction of the legal person licensee; c) the occurrence of the fact that causes the impossibility of development of the activity in question. 3-the managing body may revoke a licence in the following cases: a) if the holder fails to comply with the obligations imposed by law or by their own licenses; (b)) if not fulfilled a condition of issuance or maintenance of the license; c) if the failure or inadequacy of the concept in question.

Chapter VII Rents, rates and rates 29 Article 37 Annual Income the promoters are subject to payment of an annual income calculated on the basis of area occupied and whose installation is authorized, determined according to the formula set by order of the Member of Government responsible for the economy.

Article 38-1 Rates prior to the issuance of the establishment licence, the promoters are subject to payment of the fee provided for in Decree-Law No. 4/93, January 8, to be held at the management company. 2-the managing body is taxable resources rate legally due.

Article 39 energy produced 1 Tariff-the tariff applicable to the electrical energy produced by the integrated installations in demo regime concept is fixed by order of the members of the Government responsible for the areas of the environment and energy. 2-The rates applicable to the electrical energy produced by the integrated installations in commercial and pre-commercial production schemes are defined by order of the Member of Government responsible for energy, taking into account the State of development of each technology and set of technologies and the contribution to the development of national skills. 3-the operating licence to the pre-commercial and commercial schemes can only be issued after the publication of the Ordinance mentioned in the preceding paragraph.

30 Chapter 8 monitoring and Surveillance activities to administrative offences article 40 1-the supervision of the activity of production of electrical energy from the wave energy, safety, conservation, maintenance and removal of infrastructures, as well as the interconnection at substations and electrical connection of public service, is assigned to the managing body, without prejudice to the powers legally conferred to agencies and services of the ministries of national defence , of Internal Affairs, the environment, regional planning and Regional development and economy and innovation. 2-Checked the practice out of a tort or delict, the authorities referred to in the preceding paragraph with surveillance, supervisory skills or police of the activities that develop in the spaces under the sovereignty or national jurisdiction, must be entered an auto shipping news entities under this Ordinance shall be responsible for their instruction and procedural decision.

Article 41 administrative offences and fines 1-Constitutes a misdemeanour punishable by a fine:) € 20,000.00 € 44,891.81, proceed to the installation of structures or equipment intended for the pursuit of the activity of production of energy from the waves without the necessary licenses provided for in articles 39 and 40 of this Decree-Law; b) Of € 20,000.00 € 200,000.00, the use of equipment or structures that do not meet the safety requirements, including the compulsory insurance. 2-Constitutes a misdemeanour punishable by severe environmental pursuant to law No. 50/2006, of 29 August: a) the non-compliance with the mitigation and compensation measures contained in the environmental impact assessment 31 set out in article 32; b) the lack of achievement or the poor achievement of monitoring in view of the conditions provided for in the environmental impact assessment referred to in article 32 3-Is a misdemeanour punishable under environmental light, of law No. 50/2006, of 29 August, the lack of delivery of monitoring reports on the conditions and time limits laid down by the competent authorities. 4-the neglect and attempt are punishable. 5-the condemnation by the practice of serious infringements referred to in paragraph 2 when the concrete measure of the fine imposed exceed half of the maximum amount of the fine applicable abstract, can be published, in accordance with article 38 of law No. 50/2006, of 29 August. 6-the competent authority for the application of the fine in respect of serious infringements referred to in paragraph 2 of the previous article can make the precautionary seizures and apply sanctions deemed appropriate, in accordance with the provisions of law No. 50/2006, of 29 August.

Article 42 entities responsible for instruction and procedural decision the statement of proceedings with the implementation of the fines and penalties relating to the offences referred to in paragraph 1 of the preceding article are committed to the following entities: a) the Directorate-General for Geology and energy with regard to offences related to the production of electric power and connection to the public network; (b)) to the Port and maritime transport Institute, P.i., on related matters with the safety of structures and equipment; c) the harbourmaster in whose area of jurisdiction if it finds installed the structure or equipment of energy production, with regard to offences related to the preservation of the marine environment, safety of navigation and compulsory insurance.

32 article 43 1-precautionary measures When the seriousness of the offence warrants and is suitable to prevent or mitigate environmental damage or other relevant interests, in particular in the event of death, serious accident or incident that causes relevant impacts, may the competent authorities set out in the previous article as imposing protective measures: a) the seizure of structures or equipment belonging to the offender , used or intended to be used for the practice of the administrative offense or that may be in the practice of new offences; b) the seizure of structures or equipment, materials or objects that are not in condition to be used; c) the requirement of filing a surety bond, the amount of which corresponds to the maximum fine applicable in abstract; d) suspension of the work in progress. 2-the decisions provided for in this article shall be notified to the holders of rights that may be affected by them.

Article 44 Product of fines

The product of the fines provided for in paragraph 1 of article 41 reverts: the 40% rule); b) 20% for the management company; c) 20% for the entity to raise the auto news; d) 10% for the procedural statement; and 10% for) the procedural decision.

Chapter IX liability article 45 33 liability of promoters the damage caused by structures of production of electricity from the energy of the waves are the responsibility of the developers of the projects, which shall ensure, in that the environmental damage concerned, the reconstitution of the situation that would exist, if you hadn't checked the event that requires repair, and still safeguard people and property damaged by collision or interference of activities.

Article 46 1-Insurance license holders of establishment and operation shall be carried out and maintain valid liability insurance, whose conditions of insurance policy are approved in advance by the managing body, intended to cover the damage resulting from the activity caused to your own and third parties, by any act or omission, their representatives or persons at your service , which may be civilly liable. 2-the compulsory insurance provided for in this Decree-Law aims to ensure that the obligation to indemnify established in civil law, up to the amount of mandatory fixed capital for this type of insurance, whose minimum capital is € 1,500,000.00 (one million and 500,000 euros), for the demonstration of concept scheme, and £ 5,000,000.00 (5 million euros), to the pre-commercial and commercial schemes. 3-The proof of insurance must be shown to the competent authorities whenever requested by them.

Chapter X transitional and final provisions transitional provisions article 47 1 34-the arrangement provided for in this decree-law shall apply mutatis mutandis to projects for harnessing wave energy which at the date of your entry into force are allowed to use the public maritime domain pursuant to Decree-Law No. 254/99, of 7 July. 2-The projects covered by the preceding paragraph shall be authorized to carry out the expansion in the pre-commercial regime until a total power of 20 MW when the energy produced can be received by the public electricity grid. 3-the competent authorities for assignment of use of water resources can license or lease projects for harnessing wave energy whose title assignment procedure of use has started until 31 December 2006 with the Port and maritime transport Institute, i. p., pursuant to Decree-Law No. 468/71, of 5 November , and of Decree-Law No. 254/99, of 7 July, without need of previous tendering. 4-the projects of harnessing wave energy to produce electricity which at the date of entry into force of this decree-law are ongoing and which due to its characteristics are likely to be integrated into the Pilot may be carried forward to this Zone, and apply the arrangements provided for in this decree-law, provided that the respective prosecutors request within one year after the establishment of the Fund Manager and that the inclusion of projects in cause is accepted by this. 5-If the projects referred to in the preceding paragraph are in a competitive situation, must be taken into account for the purposes of transition to the Pilot Zone the antiquity of the submission of requests for information for the purposes of your hierarchy. 6-the promoters of projects that are integrated into the Pilot Zone pursuant to the preceding paragraphs, shall require the adaptation of the respective titles of the maritime public domain occupation within six months from the date of acceptance of the project by the management company, under penalty of these titles expire, without that watch their holders the right to any compensation or indemnity. 35 article 48 1 infrastructure-removal In case of extinction of the electrical energy production license, the promoters are required to remove all the infrastructure and equipment which form part of the production of electrical energy from the energy of the waves of the sea. 2-For the purposes of paragraph 1, the managing body shall notify the Prosecutor to, within 90 days, remove the Pilot Zone all installations and equipment related to the demonstration of the concept. 3-in the situation provided for in the preceding paragraph, if the sponsor does not comply with the order of removal of installation and other equipment, the management company can proceed on its own to their removal. 4-in the case referred to in the preceding paragraph, the costs shall be borne by the sponsor. 5-in the situation provided for in paragraph 3, the management company can resort to security provided by the promoter in connection with the licensing process.

Article 49 supplementary Law In anything not contrary to the provisions of this decree-law is applicable to the licensing of additional production installations of electricity regulated in this decree-law the rules applicable to the licensing of installations for the production of electricity from renewable energy sources.

Seen and approved by the Council of Ministers of the Prime Minister, the Minister of national defence the Minister of the environment, regional planning and Regional development 36 the Minister of economy and innovation the Minister of agriculture, Rural Development and fisheries the Minister of public works, transport and communications 37 Annex I Pilot Zone 38


Annex II elements of electric project the project, including the connection to the public network, in triplicate, and in electronic form, accompanied by the term of responsibility for your preparation, you must understand: a) descriptive document descriptive document and justification indicating the nature, importance, function and characteristics of facilities and equipment, the General conditions of your establishment and your exploration, earthing systems the main provisions adopted for electricity production, processing and transport, as well as the protection against overloads and overvoltages and their calculations, where appropriate. Description, types and characteristics of electric power generators, transformers, switchgear and protection, as well as other equipment. b general location Plan Drawings) installation referenced by coordinates and scale not less than 1:25, 000 according to the respective standard, indicating the location of major works. Plans, elevations and sections, in convenient scale, chosen according to the standard EN-ISO 5455, installation sites, with the disposal of electrical and mechanical equipment, in numbers and with sufficient detail to verify the compliance with the safety regulations. Wiring diagrams of the proposed facilities, together with an indication of all machines and appliances for measuring and protection and command, using standard graphics signals. All parts of the project shall be initialled by the technician in charge, with the exception of the last play written, where should bear the signature, full name and references of your inscription in the competent authority. Written and drawn parts that constitute the project should have standardised dimensions, be prepared in accordance with the standards in force and technical rules and be numbered or identified by letters and numbers.