
Article 1 
This Regulation establishes a programme (hereinafter referred to as the ‘Kozloduy Programme’) laying down detailed rules for the implementation of the Union’s financial contribution to address the further process of the decommissioning of Units 1 to 4 of the Kozloduy Nuclear Power Plant in Bulgaria and the consequences of their early closure, with regard to the environment, the economy and the security of supply in the region.
Article 2 
The Union contribution to the Kozloduy programme shall be granted for the purpose of providing financial support for:

— measures connected with the decommissioning of the Kozloduy Nuclear Power Plant,
— measures for environmental upgrading in line with the acquis and for modernising conventional production capacity to replace the production capacity of the four reactors at the Plant, and
— other measures which stem from the decision to close and decommission the Plant and which contribute to the necessary restructuring, upgrading of the environment and modernisation of the energy production, transmission and distribution sectors in Bulgaria as well as to enhancing security of supply and energy efficiency in Bulgaria.
Article 3 

1. The financial reference amount for the implementation of the Kozloduy Programme for the period from 1 January 2010 to 31 December 2013 shall be EUR 300 million.
2. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework.
3. The amount of the appropriations allocated to the Kozloduy Programme may be reviewed in the course of the period from 1 January 2010 to 31 December 2013 to take account of the progress made with the implementation of the Programme and to ensure that the programming and allocation of the resources are based on actual payment needs and absorption capacity.
Article 4 
In prolongation of what has been specified in the 2005 Act of Accession, the contribution for certain measures may amount to up to 100 % of the total expenditure. Every effort shall be made to continue the co-financing practice established under the pre-accession assistance and the assistance given over the period 2007-2009 for Bulgaria’s decommissioning effort as well as to attract co-financing from other sources, as appropriate.
Article 5 

1. Financial assistance for measures under the Kozloduy Programme shall be made available as a Union contribution to the Kozloduy International Decommissioning Support Fund, managed by the EBRD, in line with Article 53d of the Financial Regulation.
2. Measures under the Kozloduy Programme shall be adopted in accordance with Article 8(2).
Article 6 

1. The Commission may cause an audit of the use made of the assistance to be carried out, either directly by its own staff or by any other qualified outside body of its choice. Such audits may be carried out throughout the duration of the agreement between the Union and the EBRD on making Union funds available to the Kozloduy International Decommissioning Support Fund and for a period of 5 years from the date of payment of the balance. Where appropriate, the audit findings may lead to recovery decisions by the Commission.
2. Commission staff and outside personnel authorised by the Commission shall have appropriate right of access, particularly to the beneficiary’s offices and to all the information, including information in electronic format, needed in order to conduct such audits. The audits shall also cover the stage reached in the issuing of permits for decommissioning.The Court of Auditors and the European Parliament shall enjoy the same rights, especially of access, as the Commission.Furthermore, in order to protect the financial interests of the Union against fraud and other irregularities, the European Anti-Fraud Office (OLAF) may carry out on-the-spot checks and inspections under the Kozloduy Programme in accordance with Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities.
3. For the Union action financed under this Regulation, the term ‘irregularity’ in Article 1(2) of Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests shall mean any infringement of a provision of the law of the Union or any breach of a contractual obligation resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the Union or budgets managed by it by an unjustified item of expenditure or budgets managed by other international organisations on behalf of the Union or the Community.
4. The agreements between the Union and the EBRD on making Union funds available to the Kozloduy International Decommissioning Support Fund shall provide for appropriate measures to protect the financial interests of the Union against fraud, corruption and other irregularities and to enable the Commission, OLAF and the Court of Auditors to carry out on-the-spot checks.
Article 7 
The Commission shall ensure the implementation of this Regulation and shall report at regular intervals to the European Parliament and the Council. It shall carry out a review, as provided for in Article 3(3).
Article 8 

1. The Commission shall be assisted by the Committee established by Article 8(1) of Regulation (Euratom) No 549/2007.
2. Where reference is made to this paragraph, the procedure provided for in Article 8(2) of Regulation (Euratom) No 549/2007 shall apply.
Article 9 
This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 13 July 2010.
For the Council
The President
D. REYNDERS