27.3.1999 Official Journal of the European Communities L 83/69 COMMISSION DECISION of 1 July 1998 concerning aid which the Region of Friuli Venezia Giulia plans to grant to the steel company Servola SpA (notified under document number C(1998) 1941) (Only the Italian text is authentic) (Text with EEA relevance) (1999/226/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, Having regard to Commission Decision No 2496/96/ ECSC of 18 December 1996 establishing Community rules for State aid to the steel industry ('), and in particular Atrticle 6(5) thereof, Having invited the interested parties to submit their comments, and taking account of those comments (%), Whereas: I By letter of 28 June 1996 the Commission informed the Italian authorities of its decision to initiate proceedings under Article 6(4) of Commission Decision No 3855/91/ ECSC (replaced from 1 January 1997 by Commission Decision No 2496/96/ECSC, hereinafter referred to as ‘the Steel Aid Code’) in respect of part of the aid which the Autonomous Region of Friuli Venezia Giulia planned to grant to the steel undertaking Servola SpA (hereinafter referred to as ‘Servola). From the information available to the Commission, which was based essentially on the statements of the Italian authorities in the documents submitted, the Commission draws the following conclusions. Under draft Regional Law No 166, approved by the Regional Executive on 22 May 1995, the Autonomous Region of Friuli Venezia Giulia proposed to assist Servola to bring its Trieste plant into line with environmental standards. The assistance took the form of a capital contribution of ITL 8,5 billion towards environmental- protection investments of at least ITL 37,9 billion. The investments were aimed in particular at curbing smoke and dust emissions, reducing noise and improving water recovery. Having analysed the notified aid and investments, the Commission decided to initiate proceedings under Article 6(4) of Decision No 3855/91/ECSC in view of the fact () OJ L 338, 28. 12. 1996, p. 42. O] C 273, 19. 9. 1996, p. 4. that part of the investments, totalling some ITL 10 billion which, according to the information submitted, was for environmental protection in the form of dust control at the plant, precipitation of dust generated at the cast-iron transfer stage and cleaning of the ‘torpedoes’, related mostly to plants that entered into service in 1991/92. Because the environmental standards, i.e. the standards which the ITL 10 billion investment was intended to help attain, were adopted only in July 1990, the requirement in Article 3 of the abovementioned Decision that aid may be authorised only if plants entered into service at least two years before the entry into force of the environmental standards in question has not been complied with. The Commission also had serious doubts as to the compatibility with the common market of another part of the notified investments, totalling some ITL 4 billion, aimed at reducing dust and noise levels by resurfacing roads and yards at the site. It took the view that this type of investment cannot be deemed eligible within the meaning of Article 3 of the Decision as roads and yards at an industrial steelworks do not appear to correspond to the concept of ‘plants’ as referred to in Article 3. The Commission decided not to object to the remaining aid totalling ITL 23,94 billion. II The Commission invited the Italian Government to submit its comments on the proceedings, and informed other Member States and interested parties by publishing the decision initiating proceedings. By letter dated 17 October 1996, the Commission received comments from the British Iron and Steel Producers Association (BISPA) which were then forwarded to the Italian authorities by letter of 23 December 1996. In its letter, BISPA expressed support for the initiation of the proceedings by the Commission. In particular, it considered that no aid could be authorised for plants installed in 1991 or 1992 as the environmental standards had already entered into force in 1990. The aid for