Explanatory Memorandum to COM(2013)18 - Deployment of alternative fuels infrastructure

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dossier COM(2013)18 - Deployment of alternative fuels infrastructure.
source COM(2013)18 EN
date 24-01-2013
1. Context and objectives of the proposal

The Europe 2020 strategy for a smart, sustainable and inclusive growth, in its Flagship Initiatives “Resource efficient Europe” and 'Innovation Union', aims at tackling the social challenges like climate change, energy and resources scarcity, at enhancing competitiveness and meeting the energy security by more efficient use of resources and energy. In line with this strategy, the White Paper “Roadmap to a Single European Transport Area – Towards a Competitive and Resource Efficient Transport System”[2] called for breaking the oil dependence of transport and set a target of 60% greenhouse gas emissions reduction from transport by 2050. It announces that the Commission will develop “a sustainable alternative fuels strategy including also the appropriate infrastructure” (Initiative 24) and issue “guidelines and standards for refuelling infrastructures” (Initiative 26).

The Commission Communication on a European alternative fuels strategy evaluates the main alternative fuel options available to substitute oil whilst contributing to reduce greenhouse gas (GHG) emissions from transport, and suggests a comprehensive list of measures to promote the market development of alternative fuels in Europe, complementing other policies for reducing oil consumption and GHG emissions from transport.

The main alternative fuel options are electricity, hydrogen, biofuels, natural gas (in the forms of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), or Gas-To-Liquid (GTL)) , and Liquefied Petroleum Gas (LPG).

Lack of alternative fuel infrastructure and of the common technical specifications for the vehicle-infrastructure interface is considered a major obstacle to the market introduction of alternative fuels and consumer acceptance.

This proposal for a Directive aims at ensuring the build-up of alternative fuel infrastructure and the implementation of common technical specifications for this infrastructure in the Union. Its objective is to facilitate the work of market forces and contribute with this initiative to economic growth in Europe.

3.

2. Consultation of interested parties and impact assessment


The Commission carried out extensive preparatory work and consultations with industry and civil society through the European Expert Group on Future Transport Fuels in 2010-2011 and a targeted consultation in November-December 2011, experts from the Member States through the Joint Expert Group Transport & Environment in 2011, automotive experts from Member States, industry and civil society in the CARS 21 High Level Group in 2010-2012, and the general public through an on-line public consultation between August and October 2011 as well as a conference on “Future Transport Fuels” in the frame of the 2011 “European Union Sustainable Energy Week”.

The reports prepared by the two Expert Groups and the CARS 21 High Level Group, summaries of the public conference, and of the contributions received in the public and targeted stakeholder consultations have been published on the Commission website.

Various studies have been undertaken. The “Study on Clean Transport Systems” explored possible contributions of alternative fuels to achieve the 60% greenhouse gas emissions reduction target of the White Paper on Transport. The “CTS Implementation Study on Alternative Fuels Infrastructure” assessed different options to develop an EU-wide alternative fuels infrastructure. The 'EU Transport GHG: Routes to 2050' study specifically addressed decarbonisation issues of relevance to this initiative and its findings underlined the critical role that continued technical vehicle efficiency improvements must play in parallel to alternative fuels to ensure cost-effectiveness of the overall policy package.

The Impact Assessment, which is presented together with this proposal, investigated the situation with infrastructure for the main alternative fuel options. It assessed different policy options for the necessary build-up of alternative fuel infrastructure and the implementation of common technical specifications.

1.

Legal elements of the proposal



This proposal for a Directive sets out requirements on establishing national policy frameworks for the market development of alternative fuels and on a minimum infrastructure build-up for alternative fuels, including the implementation of common technical specifications.

Minimum infrastructure coverage is proposed to be mandatory for electricity, hydrogen, and natural gas (CNG and LNG), which is key for acceptance for these alternative fuels by the consumers (market uptake) and further development and deployment of the technology by industry.

This proposal requires establishing a minimum number of recharging points for electric vehicles by each Member State, with 10% of them being publicly accessible. It defines minimum numbers per Member States, based on the national targets for electric vehicles already set in many Member States, and an extrapolation to the total number to be expected for the whole Union. A larger number of electric vehicles can be expected in Member States with a higher rate of urbanisation, as electric vehicles will be deployed predominantly in urban agglomerations, due to range limitations, and the large benficial impact on reducing pollutant emissions and noise. Electric vehicles further need to have at least two recharging points per vehicles available for full recharging, and a certain number of publicly accessible recharging points for intermittent topping-up recharging to overcome range anxiety.

The implementation of common technical specifications is required for the interfaces between recharging points and vehicles, and also for shore-side electricity supply to waterborne vessels.

Existing hydrogen refuelling points, built up so far in the frame of hydrogen vehicle demonstration projects, shall be complemented to allow area covering circulation of hydrogen vehicles within the national territory. This would allow hydrogen vehicles to circulate Union-wide. This can serve as the basis for a possible later build-up of a Europe-wide network. Implementation of common technical specifications is required for the hydrogen refuelling points.

LNG refuelling points shall be built in all maritime and inland waterway ports, and along motorways within maximum distances, of the Trans-European Transport (TEN-T) Core Network. Implementation of common technical specifications is required for the LNG refuelling points, and also for CNG refuelling points for motor vehicles.

CNG refuelling points shall be built up to the extent required to allow circulation of CNG vehicles Union-wide.

Clear and simple information on the compatibility between the fuels and the vehicles existing in the market is required for the sake of consumer information to be placed at the pumps in all refuelling points, in vehicle manuals, and on the vehicles.

Revisions of the portfolio of alternative fuels, the infrastructure coverage and adoption of technical specifications for the fuels and their infrastructure shall be enabled through delegated acts.

Definition of the means of consumer information on fuels and their compatibility with vehicles shall be enabled through implementing acts.

All essential elements required for the transposition of this Directive are included in the Articles, annexes, and recitals of this proposal. Explanatory documents are therefore not needed.

3.1. Legal basis – Form of the legal act

This proposal for a Directive aims at contributing to sustainable transport on the long term through support for the build-up of alternative fuel infrastructure. This action is based on Article 91 lit d) of the Treaty on the Functioning of the European Union. Quantified obligations set in this proposal ensure a predictable framework for industry and customers. Member States are required to put into place national policy frameworks, for which a minimum set of elements is given in this proposal for the Directive. But the Member States keep the choice of the transposition methods to achieve the objectives set out. Flexibility in the transposition of the Directive allows Member States to use the instruments they consider most cost-efficient in attaining the targets defined by the Directive.

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3.2 Content of the proposal


Article 1 defines the scope of the Directive, requiring the implementation of common technical specifications and the build-up of minimum infrastructure for electricity, natural gas (LNG and CNG) and hydrogen as alternative fuels for transport.

Article 2 contains the definitions of terms for the purpose of this Directive.

Article 3 requires Member States to establish national policy frameworks for the market development of alternative fuels and their infrastructure. It contains also provisions on cooperation between Member States and provisions on the reporting obligation to the Commission and the subsequent evaluation of those national policy frameworks by the Commission.

Article 4 sets requirements on a minimum number of electric vehicle recharging points by each Member State and common technical specifications to be met by this infrastructure.

Article 5 requires that on the territory of Member States where hydrogen refuelling points already exist, a sufficient number of hydrogen refuelling points are provided to allow the circulation of hydrogen vehicles within the entire national territory. It also defines common technical specifications to be met by this infrastructure.

Article 6 requires that all maritime and inland ports and roads of the TEN-T Core Network are equipped with LNG refuelling points, and defines common technical specifications to be met by this infrastructure. It also requires providing a sufficient number of CNG refuelling points, within maximum distances, to allow Union-wide circulation of CNG vehicles and defines common technical specifications to be met by CNG refuelling points

Article 7 defines common elements of consumer information on fuels and compatibility with vehicles to be made available at the pump in the refuelling points, in vehicle manuals, and on the vehicles.

Articles 8 specifies the procedure for delegated acts.

Article 9 specifies the Committee procedure for implementing acts.

Article 10 outlines schedule and content of reports from the Member States and from the Commission.

Article 11 defines the time limit for the transposition of this Directive and the notification procedure of the national transposition measures.

Article 12 specifies the date of entry into force of this Directive.

Annex I defines the minimum number of elements to be contained in the national policy frameworks.

Annex II sets the minimum number of electric vehicle recharging points to be established in each Member State.

Annex III defines the technical specifications for electric vehicle recharging points, shore-side electricity supply for ships, hydrogen refuelling points, natural gas (LNG and CNG) refuelling points, and the fuel standards to be used for the consumer information to be provided on transport fuels.

5.

Subsidiarity Principle


The right for the Union to act in the field of transport is set out in Articles 90 and 91 of the TFEU, in Title VI on the Common Transport Policy.

A Union initiative in this field is necessary since Member States do not have the necessary legal instruments to achieve pan-European coordination in terms of build-up and technical specifications of infrastructure for the alternative fuels.

The value added by European action in this field derives from the trans-national nature of the identified problem of a lack of alternative fuel infrastructure. Vehicle, vessel, and equipment manufacturers need to produce on a large scale for a single Union market. They also need to be able to rely on consistent developments across Member States. Similarly, consumers and transport users expect pan-European mobility for alternative fuel vehicles and vessels. European action can provide the requested coordination at the level of the entire Union market and the implementation of common technical specifications EU-wide.

6.

Proportionality Principle


To comply with the principle of proportionality, the proposed action only addresses the alternative fuels of electricity, hydrogen, and natural gas (LNG and CNG) for which market failures require public intervention, and two modes of transport (by road and waterborne) for which the development of a minimum necessary network cannot be achieved without Union support. These sectors represent more than 80% of freight and passenger transport volumes. In these sectors, the use of alternative fuels is essential for breaking the oil dependence, improving the competitiveness of Europe, and reducing greenhouse gas and pollutant emissions.

2.

Budgetary implication



Only limited costs related to the follow-up on the implementation of the Directive will arise for the EU budget.