European Union

• Author: International Law Group

In 1992, the U.S. Environmental Protection Agency (EPA) developed a voluntary labeling program applicable to office equipment. Dubbed the "EnergyStarProgram" (ESP), it persuaded most U.S. manufacturers to adopt energy-saving features for office equipment and educated consumers as to the waste of energy that takes place while electrical gear is in stand-by mode.

The EPA later expanded the ESP to apply, inter alia, to household appliances, heating and cooling equipment, consumer electronics, home office equipment, water-coolers, house construction and lighting. It also introduced a star logo with which the maker could label its equipment to signal its conformity to the ESP's energy- saving principles.

The EC Commission noted that the American market and many others worldwide (including within the EC) had adopted the ESP as their energy-saving standard. Rather than trying to come up with a separate conservation program, the Commission decided that it made more sense to adopt the U.S. program for the entire EC. Thus, on December 19, 2000, the U.S. and the EC signed "the Energy Star Agreement" (ESA) in Washington.

Under Article III of the ESA, the parties appointed the EC Commission and the EPA the responsible agencies for carrying out the ESA. Article IV makes each agency responsible for registering voluntary participants in the labeling program, for enforcing the conditions for using the star logo and for educating consumers on its significance.

The ESA provides that the EPA and the Commission shall each recognize each other's registrations. Moreover, they are to work together to make sure that all products featuring the logo do in fact meet the energy-saving specifications set forth in ESA, Annex C.

To authorize the EC's entry into the ESA, the Commission had proposed to the Council, in July 1999, a Decision based on Article 133 EC [ex Article 113] (common commercial policy) in conjunction with Article 300(2) EC [ex Article 228] (Commission role in negotiating foreign agreements). In December of that year, the Council unanimously passed Council Decision 2001/469/EC that would authorize the EC to enter into the ESA.

The Council's final version of the Decision had rested, however, on Article 175(1) EC [ex Article 130s] (EC role in environmental regulation) along with Article 300(2) EC. The European Parliament in May 2001 had approved entry into the ESA essentially based on the grounds stated by the Council. On June 7, 2001, the ESA went into...