Article 2

The Research Programme for the Research Fund for Coal and Steel (hereinafter referred to as ‘the Research Programme’) is hereby adopted.

The Research Programme shall support the competitiveness of the Community sectors related to the coal and steel industry. The Research Programme shall be consistent with the scientific, technological and political objectives of the Community, and shall complement the activities carried out in the Member States and within the existing Community research programmes, in particular the framework programme for research, technological development and demonstration activities (hereinafter referred to as ‘the Research Framework Programme’).

Coordination, complementarity and synergy between these programmes shall be encouraged, as shall the exchange of information between projects financed under the Research Programme and those that are financed under the Research Framework Programme.

The Research Programme shall support research activities aimed at the objectives defined for coal in Section 3 and for steel in Section 4.

Article 3

For the purposes of this Decision, the following definitions shall apply:

1.

coal shall mean any of the following: (a) hard coal, including the high and medium-ranking ‘A’ coals (sub-bituminous coals) as defined in the international codification system of coal of the UN Economic Commission for Europe; (b) hard coal briquette; (c) coke and semi-coke derived from hard coal; (d) lignite, including the low-ranking ‘C’ coals (or ortho-lignites) and the low-ranking ‘B’ coals (or meta-lignites) as defined in the above codification; (e) lignite briquettes; (f) coke and semi-coke derived from lignite; (g) oil shales;

2.

steel shall mean any of the following: (a) raw materials for iron and steel production, such as iron-ore, sponge iron and ferrous scrap; (b) pig iron (including hot metal) and ferro-alloys; (c) crude and semi-finished products of iron, ordinary steel or special steel (including products for reuse and re-rolling), such as liquid steel cast by continuous casting or otherwise, and semi-finished products such as blooms, billets, bars, slabs and strips; (d) hot-finished products of iron, ordinary steel or special steel (coated or uncoated products, excluding steel castings, forgings and powder metallurgy products), such as rails, sheet piling, structural shapes, bars, wire rods, plates and universal plates, strips and sheets, and tube rounds and squares; (e) end products of iron, ordinary steel or special steel (coated or uncoated), such as cold-rolled strips and sheets and electrical sheets; (f) products of the first-stage processing of steel that can enhance the competitive position of the above iron and steel products, such as tubular products, drawn and polished products, cold-rolled and cold-formed products.

Article 4

Article 5

Issues concerning mine safety, including gas control, ventilation and air-conditioning with a view to improving underground working conditions and occupational health and safety as well as environmental issues shall also be taken into account in the projects covering the activities referred to in Article 4(1)(a) to (f).

Article 6

Article 7

Research projects shall relate to the prospects for long-term energy supply and concern the upgrading, in economic, energy-related and environmental terms, of coal deposits which cannot be extracted economically by conventional mining techniques. Projects may include studies, the definition of strategies, fundamental and applied research and the testing of innovative techniques which offer prospects for the upgrading of Community coal resources.

Preference shall be given to projects integrating complementary techniques such as the adsorption of methane or carbon dioxide, coal bed methane extraction and underground coal gasification.

Article 8

Research and technological development (RTD) shall aim to improve steel production processes with a view to enhancing product quality and increasing productivity. Reducing emissions, energy consumption and the environmental impact as well as enhancing the use of raw materials and the conservation of resources shall form an integral part of the improvements sought. Research projects shall address one or more of the following areas:

(a)	new and improved iron-ore reduction processes;

(b)	ironmaking processes and operations;

(c)	electric arc furnace processes;

(d)	steelmaking processes;

(e)	secondary metallurgy techniques;

(f)	continuous casting and near net shape-casting techniques with and without direct rolling;

(g)	rolling, finishing and coating techniques;

(h)	hot- and cold-rolling techniques, pickling and finishing processes;

(i)	process instrumentation, control and automation;

(j)	maintenance and reliability of production lines.

Article 9

RTD shall be undertaken in respect of the utilisation of steel to meet the future requirements of steel users and to create new market opportunities. Research projects shall address one or more of the following areas:

(a)	new steel grades for demanding applications;

(b)	steel properties addressing mechanical properties at low and high temperatures such as strength and toughness, fatigue, wear, creep, corrosion and resistance against fracture;

(c)	prolonging service life, in particular by improving the resistance of steels and steel structures to heat and corrosion;

(d)	steel-containing composites and sandwich structures;

(e)	predictive simulation models on microstructures and mechanical properties;

(f)	structural safety and design methods, in particular with regard to resistance to fire and earthquakes;

(g)	technologies relating to the forming, welding and joining of steel and other materials;

(h)	standardisation of testing and evaluation methods.

Article 10

In both steel production and steel utilisation, the conservation of resources, the preservation of the ecosystem and safety issues shall form an integral part of the RTD work. Research projects shall address one or more of the following areas:

(a)	techniques for recycling obsolete steel from various sources and classification of steel scrap;

(b)	steel grades and design of assembled structures to facilitate the easy recovery of steel scrap and its reconversion into usable steels;

(c)	control and protection of the environment in and around the workplace;

(d)	restoration of steelworks sites;

(e)	improvement of working conditions and quality of life in the workplace;

(f)	ergonomic methods;

(g)	occupational health and safety;

(h)	reduction of exposure to occupational emissions.

Article 11

Any undertaking, public body, research organisation or higher or secondary education establishment, or other legal entity, including natural persons, established within the territory of a Member State may participate in the Research Programme and apply for financial assistance, provided that they intend to carry out an RTD activity or can substantially contribute to such an activity.

Article 12

Any undertaking, public body, research organisation or higher or secondary education establishment, or other legal entity, including natural persons, in candidate countries shall be entitled to participate without receiving any financial contribution under the Research Programme, unless otherwise provided under the relevant European Agreements and their additional Protocols, and in the decisions of the various Association Councils.

Article 13

Any undertaking, public body, research organisation or higher or secondary education establishment, or other legal entity, including natural persons, from third countries shall be entitled to participate on the basis of individual projects without receiving any financial contribution under the Research Programme, provided that such participation is in the Community’s interest.

Article 14

A research project shall be intended to cover investigative or experimental work with the aim of acquiring further knowledge to facilitate the attainment of specific practical objectives such as the creation or development of products, production processes or services.

Article 15

A pilot project shall be characterised by the construction, operation and development of an installation or a significant part of an installation on an appropriate scale and using suitably large components with a view to examining the potential for putting theoretical or laboratory results into practice and/or increasing the reliability of the technical and economic data needed to progress to the demonstration stage, and in certain cases to the industrial and/or commercial stage.

Article 16

A demonstration project shall be characterised by the construction and/or operation of an industrial-scale installation or a significant part of an industrial-scale installation with the aim of bringing together all the technical and economic data in order to proceed with the industrial and/or commercial exploitation of the technology at minimum risk.

Article 17

Accompanying measures shall relate to the promotion of the use of knowledge gained or to the organisation of dedicated workshops or conferences in connection with projects or priorities of the Research Programme.

Article 18

Support and preparatory actions shall be those appropriate to the sound and effective management of the Research Programme, such as the evaluation and selection of proposals as referred to in Articles 27 and 28, the periodic monitoring and assessment referred to in Article 38, studies, the clustering or the networking of related projects funded under the Research Programme.

The Commission may, where it deems appropriate, appoint independent and highly qualified experts to assist with support and preparatory actions.

Article 19

The Research Programme shall be managed by the Commission. It shall be assisted by the Coal and Steel Committee, the Coal and Steel Advisory Groups and the Coal and Steel Technical Groups.

Article 20

The Coal and Steel Advisory Groups (hereinafter referred to as ‘the Advisory Groups’) shall be independent technical advisory groups.

Article 21

For the coal- and steel-related RTD aspects respectively, each Advisory Group shall advise the Commission on the following:

(a)	the overall development of the Research Programme, the information package as referred to in Article 25(3) and future guidelines;

(b)	the consistency and the possible duplication with other RTD programmes at Community and national level;

(c)	the setting-out of the guiding principles for monitoring RTD projects;

(d)	the work being undertaken on specific projects;

(e)	the research objectives of the Research Programme listed in Sections 3 and 4 of Chapter II;

(f)	the annual priority objectives listed in the information package and, where appropriate the priority objectives for dedicated calls as referred to in Article 25(2);

(g)	the preparation of a manual for evaluating and selecting RTD actions, as referred to in Articles 27 and 28;

(h)	the evaluation of proposals for RTD actions and the priority to be given to those proposals, having regard to the funds available;

(i)	the number, competence and composition of the Technical Groups referred to in Article 24;

(j)	the drawing-up of dedicated calls for proposals as referred to in Article 25(2);

(k)	other measures when requested to do so by the Commission.

Article 22

Article 23

The meetings of the Advisory Groups shall be organised and chaired by the Commission, which shall also provide the secretariat.

If necessary, the Chairman may request members to vote. Every member shall have the right to one vote. The Chairman may invite visiting experts or observers to take part in meetings where appropriate. The visiting experts and the observers shall have no voting rights.

If necessary, such as to provide advice on matters of relevance for both the coal and steel sectors, the Advisory Groups shall convene in joint meetings.

Article 24

The Coal and Steel Technical Groups (hereinafter referred to as ‘the Technical Groups’) shall advise the Commission on the monitoring of research and pilot or demonstration projects and, where necessary, in the definition of the priority objectives of the Research Programme.

Members of the Technical Groups shall be appointed by the Commission and shall come from the sectors related to the coal and steel industry, research organisations or user industries where they shall have responsibility for research strategy, management or production. In addition, the Commission, when appointing members, shall seek to achieve a gender balance.

Meetings of the Technical Groups shall, whenever possible, be held at venues chosen in such a way that project monitoring and results assessment are best ensured.

Article 25

Article 26

The proposals shall relate to the research objectives laid down in Sections 3 and 4 of Chapter II and, where applicable, to the priority objectives listed in the information package in accordance with Article 25(3) or to the priority objectives defined for the dedicated calls for proposals referred to in Article 25(2).

Each proposal shall include a detailed description of the proposed project and contain full information on objectives, partnerships, including the precise role of each partner, management structure, anticipated results, expected applications and an assessment of anticipated industrial, economic, social and environmental benefits.

The proposed total cost and its breakdown shall be realistic and effective, and the project shall be expected to produce a favourable cost/benefit ratio.

Article 27

The Commission shall ensure a confidential, fair and equitable evaluation of proposals.

The Commission shall establish and publish a manual for the evaluation and selection of RTD actions.

Article 28

Article 29

Projects based on selected proposals and measures and actions as specified under Articles 14 to 18 shall form the subject of a grant agreement. Grant agreements shall be based on relevant model grant agreements drawn up by the Commission, taking account, as appropriate, of the nature of the activities concerned.

Grant agreements shall define the financial contribution allocated under the Research Programme on the basis of the eligible costs, as well as the rules concerning cost reporting, the closure of accounts and certificates on financial statements. In addition, they shall provide for provisions on access rights and dissemination and use of knowledge.

Article 30

Article 31

Article 32

The costs of purchasing or hiring equipment which are directly related to the execution of the project shall be chargeable as direct costs. The eligible costs for the leasing of equipment shall not exceed any eligible costs for its purchase.

Article 33

The costs of actual hours devoted exclusively to the project by scientific, postgraduate or technical staff and the staff costs of manual workers directly employed by the beneficiary shall be chargeable. Any additional staff costs, such as scholarships, shall require the Commission’s prior written approval. All working hours charged must be recorded and certified.

Article 34

Operating costs directly related to the execution of the project shall be limited solely to the cost of:

(a)	raw materials;

(b)	consumables;

(c)

energy;

(d)	transportation of raw materials, consumables, equipment, products, feedstock or fuel;

(e)	the maintenance, repair, alteration or transformation of existing equipment;

(f)	IT and other specific services;

(g)	the rental of equipment;

(h)	analysis and tests;

(i)	dedicated workshop organisation;

(j)	certificate on financial statements and bank guarantee;

(k)	protection of knowledge;

(l)	assistance from third parties.

Article 35

All other expenses, such as overhead costs or overheads, which may arise in connection with the project and which are not specifically identified in the preceding categories including travel and subsistence costs, shall be covered by a flat rate amounting to 35 % of the eligible staff costs as referred to in Article 33.

Article 36

For research, pilot and demonstration projects referred to in Articles 14, 15 and 16 periodical reports shall be drawn up by the beneficiary or beneficiaries. Such reports shall be used to describe the technical progress made.

On completion of the work, a final report comprising an assessment of exploitation and impact shall be provided by the beneficiary or beneficiaries. That report shall be published by the Commission in full or in summarised form depending on the strategic relevance of the project and following consultation, if necessary, of the relevant Advisory Group.

The Commission may require the beneficiary or beneficiaries to provide final reports on the accompanying measures referred to in Article 17 as well as on the support and preparatory actions referred to in Article 18 and may decide to have them published.

Article 37

The Commission shall conduct an annual review of activities under the Research Programme and the progress of the RTD work. The report containing the review shall be forwarded to the Coal and Steel Committee.

The Commission may appoint independent experts and highly qualified experts to assist with this annual review.

Article 38

Article 39

For the appointment of independent and highly qualified experts referred to in Article 18, Article 28(2) and Article 38, the provisions set out in Articles 14 and 17 of the Regulation (EC) No 1906/2006 (8), shall apply by analogy.