Explanatory Memorandum to COM(2014)581 - Requirements relating to emission limits and type-approval for internal combustion engines for non-road mobile machinery - Main contents
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| dossier | COM(2014)581 - Requirements relating to emission limits and type-approval for internal combustion engines for non-road mobile machinery. |
|---|---|
| source | COM(2014)581  |
| date | 25-09-2014 |
· General context
Non-road mobile machinery (NRMM) covers a large variety of combustion engines installed in machines ranging from small handheld equipment, construction machinery and generating sets, to railcars, locomotives and inland waterway vessels. These engines contribute significantly to air pollution and are accountable for roughly 15% of the nitrogen oxide (NOx) and 5% of the particulate matter (PM) emissions in the EU.
The emissions limits for these engines are currently set out in Directive 97/68/EC. This Directive was amended a number of times, but several technical reviews have concluded that the legislation in its current form has shortcomings. The scope is overly restricted as it leaves out some engine categories. New emission stages were last introduced when the Directive was amended in 2004 and no longer reflect the current state of technology. Furthermore, there is a mismatch between the emission limits for certain engine categories.
Finally, there is recent conclusive evidence on the adverse health effects of diesel exhaust emissions and especially about particulate matter (i.e. diesel soot). One of the main findings is that the size of the particles is a crucial factor behind the observed health effects. This issue can only be addressed by limit values that are based on a particle number count (i.e. PN limit). Therefore, and in line with the developments in the road sector, the introduction of a new emission stage (Stage V), which would target particle number limits in addition to particle mass limits, appeared appropriate for the most relevant engine categories.
· Grounds for and objectives of the proposal
The proposal seeks to protect human health and the environment, and ensure the proper functioning of the internal market for engines in NRMM. It also seeks to address competitiveness and compliance aspects.
In line with the EU's air quality policy, the objective is to progressively reduce the emissions from new engines being brought on the market and, thereby, replace the old, more polluting ones over time. This is expected to result in a very significant emission reduction overall, but the reduction by engine category will vary depending on how stringent the specific requirements already are at present.
The proposal is also expected to alleviate the pressure on Member States to take additional regulatory action that could hamper the internal market. Finally, the proposal seeks to remove obstacles to external trade through harmonised rules and by reducing the regulatory barriers that result from diverging emission requirements. In particular with a view to bringing EU and US requirements closer together.
Finally, the proposal contributes to the competitiveness of the European industry by simplifying the existing type-approval legislation, improving transparency and alleviating administrative burden.
· Existing provisions in the area of the proposal
The existing emission requirements for NRMM engines are regulated in Directive 97/68/EC of the European Parliament and of the Council of 16 December 1997 on the approximation of the laws of the Member States relating to measures against the emission of gaseous and particulate pollutants from internal combustion engines to be installed in non-road mobile machinery (OJ L 59, 27.2.1998, p.
1).
The draft proposal and its implementing and delegated acts will carry over and improve on the existing requirements laid down in the above act, following a technical review concluding on a number of substantial shortcomings. Compared to the existing act, the proposal for a regulation will:
– introduce new emission limits reflecting technological progress and EU policies in the on-road sector, with a view to achieving EU air quality targets;
– extend the scope, with a view to improving market harmonisation (EU and international) and minimising the risk of market distortions;
– introduce measures for simplifying administrative procedures and improving enforcement, including conditions for better market surveillance.
· Consistency with the other policies and objectives of the Union
The initiative under consideration is aimed at improving the protection of the environment by updating existing emission limits and by extending their scope, where appropriate. At the same time, it is aimed at ensuring the proper functioning of the single market, while removing unnecessary burden on the companies operating in it and internationally. It is, therefore, entirely consistent with the Europe 2020 strategy and fully aligned to the EU's Sustainable Development Strategy.
In this context, the initiative under consideration ties in with the following more specific policies and objectives:
– The EU’s 6th Environmental Action Programme i which proposed to attain “levels of air quality that do not give rise to significant negative impacts on, and risks to human health and the environment”.
– The Thematic Strategy on Air Pollution[2] which provides a comprehensive EU policy framework for reducing the adverse impact of air pollution on human health and environment for the period up to 2020.
– The National Ceilings Directive 2001/81/EC which establishes legally binding limits for the total permissible emissions at Member State level for several air pollutants. According to the official data reported under said Directive, 12 Member States exceeded these limits in 2010 and, despite some improvements, compliance problems will likely persist.
– The Ambient Air Quality Directive 2008/50/EC which sets legally binding limits for concentrations in outdoor air of major air pollutants such as particulate matter and nitrogen dioxide.
– The 2011 White Paper on Transport[3], in particular with regard to cleaner inland waterway and rail transportation.
More stringent requirements for combustion engines in NRMM would positively contribute to the objectives of all of the above policies.
Finally, the proposal also ties in with the industrial policy update of 2012 i and could make an important contribution to technical harmonisation in the context of the EU-US trade negotiations (TTIP).
· Consultation of interested parties
In developing the proposal the Commission has consulted stakeholders in a number of ways:
– There was an open public internet consultation, covering all aspects of the proposal. Responses were received from EU national and regional authorities of EU Member States (ministries, agencies), professional associations, industrial companies, non-governmental organisations and social partners.
– A stakeholder hearing accompanying the open public internet consultation was organised on 14 February 2013 in Brussels, attended by approximately 80 participants.
– In the context of several Impact Assessment studies conducted in the past by external consultants, stakeholders were invited to contribute and send in comments.
– The proposal has been discussed in several meetings of the Commission’s Working Group of Experts on Machinery Emissions (GEME), which brings together industry, NGOs, as well as Member State and Commission representatives.
An open public consultation started on 15 January 2013 and closed on 8 April 2013 (12 weeks duration). For this purpose, a dedicated consultation web-page[5] was set up and the Commission services prepared a 15 page consultation document, outlining key issues, study results and potential courses of action. 69 responses were received in total.
A detailed analysis of the results is included in Annex II to the Impact Assessment report and the individual responses can be viewed on the consultation web-page.
· Collection and use of expertise
The proposal required the assessment of different policy options as well as the associated economic, societal and environmental impacts.
The Commission has carried out various studies and regularly consulted stakeholders, as concerns the feasibility of new limit values and the need to include new stages for exhaust emissions based on technical progress. The Impact Assessment builds on the following external studies[6]:
– A Technical Review of the Directive, submitted in two parts, by the JRC, which in part 1 includes an overview of emissions inventories for NRMM. Part 2, inter alia, focuses on spark ignition engines (small petrol engines and snowmobile engines) and, among others, analyses emission inventories and market sales of construction and agricultural machinery.
– An Impact Assessment study by ARCADIS N.V. assesses the impacts of the policy options developed in the Technical Review of the JRC. A complementary study by the same contractors looked specifically at the impacts on small and medium sized enterprises (SMEs). In addition to the social and economic impact the environmental and health impact was also evaluated in this study.
– A study from Risk & Policy Analysis (RPA) and Arcadis, evaluates the current contribution of the NRMM sector to greenhouse gas (GHG) emissions. This study also examines the feasibility of extending the emission limits for variable speed engines to constant speed engines and considers the option of aligning the exhaust emission limit values to US values.
– The PANTEIA study[7] commissioned by DG MOVE analyses the situation in the inland navigation sectors and assesses specific measures for reducing emissions from inland waterway transport.
The work on the impact assessment was followed and informed by an inter-service steering group which met four times in 2013. All relevant Commission services were invited to participate in this group. The JRC further supported the analytical work with a research project on the effects of particulate number (PN) limits for certain engine categories.
The reports of the aforementioned studies, respectively, are available on the DG Enterprise and Industry website.
· Impact assessment
Three main policy options were analysed in detail. Each consists of various sub-options for the engine categories and applications already covered by EU NRMM legislation, and for the ones that could come under its scope in the future. Alongside the no-policy change scenario, these options are:
Option 2: Alignment with US standards in scope and limit values.
Option 3: Step towards road sector ambition levels, for the most relevant emission sources.
Option 4: Extended level of ambition through enhanced monitoring provisions.
However, it was already taken into account in the analytical design that the preferred choice might be a combination of elements from different options. The analysis of costs and benefits was carried out in individual modules that allow for regrouping elements.
Non-legislative options (e.g. a voluntary agreement with industry) have been considered, but the initial analysis concluded that such an approach would be unsuitable for reaching the initiative's objectives. This decision is based on the consideration that emission limits for NRMM engines are unlikely to be effective and cannot guarantee a level playing field for all economic operators unless they are legally binding.
The impact assessment was accepted by the Impact Assessment Board following its presentation on 20 November 2013.
Contents
- Legal elements of the proposal
- Budgetary implication
- 2. Consultation of interested parties and impact assessment
- Consultation methods, main sectors targeted and general profile of respondents
- Summary of responses and how they have been taken into account
- Scientific/expertise domains concerned
- Methodology used
- Means used to make the expert advice publicly available
- 5. Additional information
· Summary of the proposed action
The proposal significantly upgrades the NRMM engine type-approval system with respect to the technical requirements on emissions by adopting stricter levels, as well as introducing the “split-level approach”.
The proposal will, through the delegated acts foreseen herein, lay down in detail the new mandatory requirements for Stage V engine emission limits. In particular, the delegated acts adopted under this proposal will include, amongst others:
– detailed technical requirements of the test cycles;
– technical test and measurement procedures;
– detailed arrangements and requirements for the exceptions granted under this Regulation;
– detailed provisions for type-approval procedures.
· Legal basis
The legal basis of the proposal is Article 114 of the Treaty on the Functioning of the European Union.
· Subsidiarity principle
The subsidiarity principle applies since the proposal does not fall under the exclusive competence of the Union.
As the proposal involves amendments to existing EU legislation, only the EU can effectively address the issues. Furthermore, the policy objectives cannot be sufficiently achieved by actions of the Member States.
European Union action is necessary to avoid the emergence of barriers to the single market notably in the field of NRMM engines, and because of the transnational nature of air pollution. Even though the effects of the main air pollutants are most severe close to the source, the effects on air quality are not limited to the local level and cross-border pollution is a serious environmental problem that can render national solutions ineffective. In order to solve the problem of air pollution, concerted action at EU level is required.
Setting up emission limits and type-approval procedures at national level would potentially result in a patchwork of 28 different regimes, which would represent a serious obstacle to intra-Union trade. Moreover, it could impose a significant administrative and financial burden on manufacturers who are active in more than one market. Therefore, the objectives of the initiative under consideration cannot be achieved without action at the EU level.
Finally, a harmonised approach at EU level is expected to represent the most cost-efficient way for manufacturers and end-users to achieve emission reductions.
The proposal therefore complies with the subsidiarity principle.
· Proportionality principle
The proposal complies with the proportionality principle for the following reasons.
As shown in the impact assessment, the proposal complies with the proportionality principle because it does not go beyond what is necessary in order to achieve the objectives of ensuring the proper functioning of the internal market while at the same time providing for a high level of public safety and environmental protection.
The simplification of the regulatory environment will significantly contribute to the reduction of administrative costs for national authorities and industry.
· Choice of instruments
Proposed instruments: regulation.
Other means would not be adequate for the following reasons.
Directive 97/68/EC has been substantially amended several times. For reasons of clarity, predictability, rationality and simplification, the Commission is proposing to replace Directive 97/68/EC by a Regulation and a small number of delegated and implementing acts.
Furthermore, the use of a Regulation will ensure that the provisions concerned are directly applicable to manufacturers, approval authorities and technical services, and that they can be updated much faster and more efficiently to take better account of technical progress
The proposal uses the “split-level approach” is already used in other pieces of legislation in the area of EU type-approval of motor vehicles. This approach foresees legislation in two steps:
· first, the fundamental provisions will be laid down by the European Parliament and the Council in a Regulation based on Article 114 of the Treaty on the Functioning of the European Union through the ordinary legislative procedure;
· secondly, the technical specifications implementing the fundamental provisions will be laid down in delegated acts adopted by the Commission in accordance with Article 290 of the Treaty on the Functioning of the European Union.
The cost associated to setting up an electronic database for the exchange of type-approval information was already assessed in a feasibility study[8] commissioned by the UNECE in June 2006 and for cars, a European Type-Approval Exchange System (ETAES) already exists in the EU.
While the feasibility study was not done on a publicly available database, it can still be assumed that the cost assessment provides a valid indication of the costs involved.
The study predicted one off start-up costs in the € 50,000 to € 150,000 range and operating costs of € 5,000 to € 15,000 per month, depending on the length of the contract with the service provider. A similar monthly range is provided for operating a help desk service, if required.
· Simulation, pilot phase and transitional period
There are general and specific transitional periods in the proposal in order to allow sufficient lead time for engine and machinery manufacturers, as well as for administrations.
For the transition from the current emission standards to the new emission stage, a newly developed transition scheme is proposed which is significantly simpler in administrative terms for manufacturers of engines and machinery, whilst at the same time substantially reducing the burden for the national approval authorities.
With regard to the monitoring of in-service emission performance of engines, pilot programmes are proposed with a view to developing appropriate testing procedures.
· Simplification
The proposal provides for simplification of legislation.
An extremely complex Directive on NRMM engine emissions with 15 Annexes, which was amended 8 times without recasting, will be repealed.
The proposal provides for simplification of administrative procedures for public authorities. The proposal is included in the Commission's rolling programme for up-date and simplification of the ‘acquis communautaire’ and its Legislative Work Programme under the reference 2010/ENTR/001.
· Repeal of existing legislation
The adoption of the proposal will lead to the repeal of existing legislation.
· European Economic Area
The proposed act concerns an EEA matter and should therefore extend to the European Economic Area.