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The Energy Transition Law for Green Growth was published over a year ago, just weeks before France hosted COP 21. This framework law, aimed at reducing the country's energy consumption and greenhouse gas (GHG) emissions, contains 215 articles, 160 of which require the adoption of an implementing decree. A little over a year later, 130 of these measures have already been addressed by the necessary decrees.
Where do things stand today? We provide an overview of the key provisions that may directly or indirectly affect businesses. Other provisions will be covered in a follow-up article coming very soon. Here, we will discuss the publication of decrees relating to:
- The national low-carbon strategy and the multi-year energy program,
- Building construction and renovation,
- Employee commuting,
- The circular economy and waste.
Publication of decrees relating to the national low-carbon strategy and the multi-year energy program
The initial national strategic guidelines outlining the energy transition policy initiated by the law have been established through the publication of decrees relating to the national low-carbon strategy (SNBC) and the multi-year energy program (PPE). While these documents do not impose direct requirements on businesses, they set the roadmap for the coming years to achieve the objectives established by the Energy Transition Law (LTE).
SNBC - Decree No. 2015-1491 of November 18, 2015:
The SNBC defines carbon budgets and sector-specific guidelines for the 2015-2018, 2019-2023, and 2024-2028 periods. Its primary goal is to initiate a gradual reduction in greenhouse gas emissions in line with the targets set by the Energy Transition Law (a 40% reduction by 2030 and a 75% reduction by 2050, compared to 1990 levels).
PPE - Decree No. 2016-1442 of October 27, 2016:
This program defines the priorities for French energy policy through 2023. The main outlines are as follows:
- reduce energy consumption (-12%), specifically fossil fuel consumption (-22%),
- increase renewable electricity capacity by more than 70% and renewable heat production by 50%,
- develop clean mobility by deploying active, collective, and shared transport modes, and by diversifying fuels toward electric and natural gas for vehicles,
- reduce nuclear power generation,
- make the energy system more flexible and resilient to all types of shocks by implementing strategies to develop storage, promote self-consumption, and expand heating networks.
It should be noted that an appeal against the PPE decree was filed on November 9, 2016, by the associations Sortir du nucléaire and Greenpeace, which denounce a "legal vacuum" regarding nuclear power in the PPE, arguing that "this deficiency constitutes a violation of the Energy Transition Law, as the text does not comply with the objective of reducing the share of nuclear production to 50% by 2025."
Beyond the SNBC and the PPE, numerous other implementing decrees have been adopted to clarify certain measures directly applicable to businesses in various fields.
Energy Transition Law: Building construction and renovation
The construction bonus - Decree No. 2016-856 of June 28, 2016, and the Order of October 12, 2016
New criteria must be met to qualify for this bonus when a building permit is issued. This bonus represents a significant opportunity. It allows for exceeding building size regulations by up to 30% for high-performance buildings, specifically:
- positive-energy buildings (BEPOS) that produce more renewable energy than they consume
- or energy-efficient buildings: buildings whose conventional energy consumption is at least 20% lower than the reference consumption set by RT2012
- or environmentally exemplary buildings: buildings certified based on their GHG emissions and other criteria such as construction waste management, bio-sourced materials, or indoor air quality
Insulation work required for certain buildings undergoing major renovations - Decree No. 2016-711 of May 30, 2016
Whenever you carry out major facade renovation or roof repair work on certain existing buildings, thermal insulation work must be undertaken. The work concerned includes:
- Facade renovation involving walls of heated premises facing the exterior AND including the repair of existing plaster, the replacement of existing cladding, or the installation of new cladding, covering at least 50% of a building facade, excluding openings
- Roof repair applying to the roof or the top floor of the last inhabited or heated level AND including the replacement or covering of at least 50% of the entire roofing, excluding openings
What are the exemption criteria?
- Risk of structural damage related to insulation work
- Insulation work that conflicts with urban planning regulations or constraints related to the preservation of architectural and landscape heritage
- Clear disproportion between the benefits and drawbacks of the insulation (additional costs, return on investment > 10 years, impact on building usage, degradation of architectural quality, etc.)
Employee commuting
Bicycle mileage allowance (IKV) - Decree no. 2016-144 of February 11, 2016
This allowance is paid to employees who commute by bicycle between their home and their usual place of work. Initially intended to be mandatory, the IKV can ultimately be paid on a voluntary basis by companies. The implementation conditions for this allowance have been specified:
- Voluntary implementation by the employer,
- Allowance set at 25 euro cents per kilometer,
- Can be combined with the coverage of public transport subscriptions for feeder trips to public transport stops,
- Allowance exempt from social security contributions, up to a limit of €200 per year per employee, based on the kilometers traveled by employees to get to work.
Parking facilities - Decree no. 2016-968 of July 13, 2016, and the order of July 13, 2016
The obligation to equip parking lots with infrastructure for charging electric vehicles and bicycle parking has been expanded.
Consequently, new buildings primarily used for industrial or commercial purposes that include a parking lot and for which a building permit application is filed on or after January 1, 2017, must, under certain conditions, be equipped with:
- facilities for charging electric or plug-in hybrid vehicles
- a dedicated space for secure bicycle parking
Secure bicycle parking
Regardless of the type of new building, three technical requirements must be met: providing an indoor or outdoor space (enclosed and covered) on the same property, having a secure locking system or surveillance, and including fixed devices to stabilize and lock the bicycle by its frame and at least one wheel.
For new buildings primarily used as offices, the space must account for at least 1.5% of the floor area. For new buildings primarily used for industrial or commercial purposes (other than offices), the space must accommodate a number of bicycle parking spots calculated based on 15% of the total number of employees present at any one time.
Electrical installations for charging electric or hybrid vehicles
For new buildings primarily used for commercial or industrial purposes, 10% of parking spaces must be equipped (with a minimum of one space) if the total capacity is 40 spaces or fewer. This percentage increases to 20% when the capacity exceeds 40 spaces.
These parking spaces must be powered by a dedicated electrical circuit capable of supporting future charging points with a minimum individual nominal power of 22 kW.
Circular economy and waste - Decree No. 2016-288 of March 10, 2016, of the Energy Transition Law
Commitments from the Energy Transition Law to promote thecircular economy, particularly through waste recovery, have been implemented.
Paper, metal, plastic, glass, and wood waste - Decree No. 2016-288 of March 10, 2016
The "5-stream" decree mandates, as of July 1st , 2016, the source separation of non-hazardous paper, metal, plastic, glass, and wood waste to encourage its recovery. This obligation applies to waste producers and holders who do not use public waste collection services, as well as those who produce more than 1,100 liters of waste per week.
The relevant producers/holders must:
- organize the separate sorting and collection of this waste, either by implementing source-separated sorting for each material type or by grouping these waste categories together for subsequent sorting,
- transfer this waste to collection and/or treatment service providers for recovery,
- ensure that they obtain, no later than March 31 of each year, certificates issued by the collection or treatment provider specifying the quantities and nature of the waste handled and their final recovery destinations.
However, certain issues remain unresolved by this decree. Specifically, the text does not clarify whether this refers to material or energy recovery, nor does it sufficiently define the type of waste targeted (particularly regarding plastic).
Bio-waste
The same decree also supplements the framework applicable to bio-waste. The prohibition on mixing bio-waste with other types of waste after it has been sorted by the producer is now codified. Furthermore, the recovery facility must now provide the producer or holder with an annual certificate stating the quantities and nature of the waste collected separately during the previous year, as well as its final recovery destination.
Construction materials
The decree details the obligation for any distributor of construction materials, products, and equipment intended for professionals to take back waste from materials, products, and equipment of the same type. This measure could, however, be subject to cancellation following the appeal filed with the Council of State by the Liaison Committee for Professional Building Distribution (CLAB).
In this article, we have provided an overview of the initial impacts of the Energy Transition Law. In a few days, we will publish a follow-up article to complete this topic. This next piece will focus specifically on new economic mechanisms for energy management, tools for promoting electricity production from renewable sources, and the obligations for Greenhouse gas (GHG) emissions reporting.