Explanatory Memorandum to COM(2007)593 - Type-approval of hydrogen powered motor vehicles

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dossier COM(2007)593 - Type-approval of hydrogen powered motor vehicles.
source COM(2007)593 EN
date 10-10-2007
1) CONTEXT OF THE PROPOSAL

3.

Grounds for and objectives of the proposal


The objective of the proposal is to lay down harmonised rules on the construction of motor vehicles with a view to ensuring the functioning of the internal market while at the same time providing for a high level of public safety and a high level of environmental protection.

The proper functioning of the single market in the European Union requires common standards regarding the approval of hydrogen powered vehicles. Action at Community level prevents varying product standards emerging across Member States which results in fragmentation of the internal market and imposition of unnecessary barriers to intra-Community trade.

At the same time, since there are perceived safety issues with using hydrogen for vehicle propulsion, it should be ensured that hydrogen systems are as safe as conventional propulsion technologies.

4.

General context


Hydrogen is not a source of energy but a promising energy carrier.

The use of hydrogen as fuel for road vehicles offers an environmentally friendly solution for mobility. This is because with the use of hydrogen as fuel, whether in fuel cells or internal combustion engines, there are no carbon emissions and greenhouse gases produced from the vehicle. If the fuel is produced in a sustainable manner, the use of this propulsion technology could significantly contribute to the improvement of the environment.

However, at present hydrogen powered vehicles are not included in the European Community vehicle type-approval framework. This situation results in a fragmented internal market of these vehicles, which discourages the introduction of this environmentally friendly technology.

Furthermore, hydrogen is a substance that has different characteristics from conventional fuels that are used for vehicle propulsion. In order to realise the environmental benefits associated with the use of hydrogen vehicles, the share of these in the total vehicle fleet should be increased. One of the major factors contributing to the increasing number of hydrogen vehicles on the roads is the existence of public confidence in this new technology.

5.

Existing provisions in the area of the proposal


There are no existing provisions in the area of the proposal.

6.

Consistency with the other policies and objectives of the Union


The proposal is fully in line with the aims of the European Union's Sustainable Development strategy and contributes significantly to the objectives of the Lisbon strategy.

7.

2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT


Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents

In developing the proposal the Commission has consulted stakeholders in a number of ways:

- There was consultation with the Hydrogen Working Group. This is a specialist expert stakeholder working group responsible for supporting the Commission on issues related to the type-approval of hydrogen vehicles. A broad range of interested parties is involved in the work of this group: national authorities, vehicle manufacturers, component suppliers and industry associations.

- A questionnaire was sent to stakeholders in June 2006 on possible policy options regarding the approval framework for hydrogen vehicles. The questionnaire aimed at gathering views of stakeholders as to the preferred option and the associated costs of approval under each of these options.

- A consultant was engaged to provide input for the impact assessment and to give technical advice on the draft proposal for a potential regulation.

- To understand more fully the implications of the policy options, the consultant organised meetings with key automotive companies involved in hydrogen technology to generate additional data on safety, technology and the related costs.

- There were presentations to key stakeholders of the Hydrogen Working Group during the second half of 2006 and early 2007 on the results of the work carried out by the consultant.

- The preliminary draft proposal for a Regulation on the type-approval of hydrogen vehicles was put to public consultation in July 2006. The consultation generated around 20 responses from a range of different stakeholders.

8.

Summary of responses and how they have been taken into account


During the internet consultation, a number of issues were raised by stakeholders.[1] The impact assessment that accompanies this proposal provides a full account of the substantive issues raised and discusses how they have been taken into consideration.

9.

Collection and use of expertise


Scientific/expertise domains concerned

The proposal required analysis of the necessary safety provisions and the assessment of the available policy options as well as the associated economic, societal and environmental impacts.

10.

Methodology used


The following work was carried out by the consultant:

- review of relevant literature to identify safety and environmental issues surrounding the introduction of hydrogen vehicles;

- gathering and evaluation of information on the impacts of the various policy options on public safety, the environment and the economy;

- assessment of stakeholder responses to the questionnaire sent out by the Commission services in June 2006 on the available policy options;

- comparison of impacts of policy options regarding public safety, the environment and the economy in qualitative and quantitative terms;

- review of technical requirements of a draft proposal for a potential regulation as to its ability to address the identified safety issues.

11.

Main organisations/experts consulted


Input for the impact assessment and technical advice on the draft proposal for a potential regulation was provided by TRL Ltd. in the UK.

12.

Summary of advice received and used


The Commission used the consultant’s report as an input to the analysis of the various policy options. The preferred policy option has been selected on the basis of a cost-benefit analysis, as explained in the impact assessment accompanying the proposal.

13.

Means used to make the expert advice publicly available


The report of TRL is available on the DG Enterprise and Industry web site.[2]

14.

Impact assessment


Four policy options have been considered:

No policy change: This option would involve no further changes to the current situation. Currently, the scope of European Community type-approval legislation does not include hydrogen powered vehicles. Thus, Member States may grant individual approvals without introducing legislation.

With no change in the policy regarding the approval of hydrogen vehicles, there is a high risk that the functioning of the internal market would be impaired. This would result in substantial cost implications for manufacturers and would entail possible repercussions on public safety.

There is a high risk that with no policy change, poor air quality and high levels of noise in cities of the European Union will remain an issue as atmospheric pollution and noise will continue to have a detrimental impact on human health.

This policy option would lead to uneven treatment of vehicle manufacturers with regard to the vehicle approval procedure and would lack any predictability for manufacturers to design their vehicles. Further, it would constitute a substantial barrier for the development of hydrogen technology in the EU.

Therefore, this policy option is not considered to be viable.

Legislation at Member State level: This policy option would involve adoption of legislation at Member State level to accommodate the introduction of hydrogen vehicles.

With diverging standards emerging from Member States, the fragmented situation regarding the approval of vehicles would continue to exist, which would result in manufacturers facing unduly high development and approval costs and limited market accessibility. The policy option would not offer a solution for the present uncertainty regarding the approval of hydrogen vehicles, therefore would discourage further investment in the hydrogen technology.

In comparison with the Legislation at EU level option, this policy option would result in substantially lower environmental benefits and would not ensure that hydrogen vehicles are at least as safe as conventional vehicles.

Thus, the option would result in a fragmented internal market and would not ensure that the policy objectives are attained. Therefore, this is not the approach to be followed.

Legislation at European Union level: This policy option would involve the extension of the EC type-approval legislation to include hydrogen powered vehicles and setting out harmonised provisions for these vehicles.

Legislation at Community level prevents varying product standards emerging across Member States which results in fragmentation of the internal market and imposition of unnecessary barriers to intra-Community trade. Through harmonised standards on hydrogen powered vehicles it is possible to reap the economies of scale as production series can be made for the whole European market. This policy option would open up markets in some Member States where hydrogen vehicles could not currently be sold.

As shown in the impact assessment, this option will have the clear benefits of ensuring the proper functioning of the internal market, providing a high level of public safety throughout all EU Member States and improving noise and air quality levels sooner. This, in turn, will improve public health and, thus, will enable governments to generate savings.

Further, it would be ensured that the European Union keeps pace with other important automotive regions of the World with regard to the introduction of advanced technologies and the international competitiveness of the European industry might be improved.

Thus, this option is pursued in the proposal.

Non-regulatory approach: Self-regulation through a negotiated commitment with the automotive industry to establish requirements for hydrogen powered vehicles.

It is not clear that a self commitment provides an adequate guarantee that hydrogen vehicles will be as safe as conventional vehicles or that there will be appropriate sanctions available if the self-commitment were to be breached. In addition, this approach is not likely to ensure that hydrogen vehicles are treated equally in comparison to conventional vehicles in the type-approval procedure. Moreover, it is not apparent that the use of a voluntary approach would offer any additional benefits to the industry, governments or the general public.

The option of non-regulatory approach was therefore not considered further.

The Commission services carried out an impact assessment listed in the Work Programme under the reference number 2006/ENTR/044.

3)

1.

LEGAL ELEMENTS OF THE PROPOSAL



15.

Summary of the proposed action


The impact analysis has identified that the preferred policy option is the adoption of an EU Regulation with the purpose of incorporating hydrogen vehicles of categories M1, M2, M3 and N1, N2, N3 in the EU whole vehicle type approval framework.

The proposal foresees the amendment of the Framework Directive i in order to include hydrogen vehicles in the approval procedure. It specifies technical requirements to be applied for the type-approval of hydrogen components (hydrogen containers and hydrogen components other than containers) included in the hydrogen system in order to ensure that hydrogen related components are working in a proper and safe way. In addition, it includes requirements for the type-approval of vehicles with regard to the installation of hydrogen components or systems in vehicles. The proposal foresees the amendment of separate type-approval Directives and Regulations in order to include specific requirements for hydrogen powered vehicles.

16.

Legal basis


The legal basis of the proposal is Article 95 of the Treaty.

17.

Subsidiarity principle


The subsidiarity principle is respected, since the policy objectives cannot be sufficiently achieved by actions of the Member States and can be better achieved at Community level. European Union action is necessary because of the need to avoid the emergence of barriers to the single market.

Community action will better achieve the objectives of the proposal because it will avoid fragmentation of the internal market which would otherwise arise and will ensure the safety of hydrogen vehicles.

18.

Proportionality principle


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.

19.

Choice of instruments


The proposed instrument is a Regulation. Other means would not be adequate for the following reason:

- The use of a Regulation is considered to be appropriate in providing the required assurance for compliance whilst not requiring the transposition into Member States legislation.

The proposal uses the 'split-level approach' that has originally been introduced at the request of the European Parliament and used in other pieces of legislation, e.g. in the case of the Directive for heavy duty vehicle emissions i and the Regulation on the Euro 5 and 6 stage of light-duty vehicles emissions i. This approach foresees that the proposal and adoption of legislation will be made according to two different, but parallel, routes:

- first, the fundamental provisions will be laid down by the European Parliament and the Council in a Regulation based on Article 95 of the EC Treaty through the co-decision procedure (the co-decision proposal);

- secondly, the technical specifications implementing the fundamental provisions will be laid down in a Regulation adopted by the Commission with the assistance of a regulatory committee (the comitology proposal).

4)

2.

BUDGETARY IMPLICATION



The proposal has no implications for the Community budget.

20.

5) ADDITIONAL INFORMATION


Simulation, pilot phase and transitory period

There are general transitory periods in the proposal in order to allow sufficient lead times for vehicle manufacturers.

21.

Simplification


The proposal provides for simplification of administrative procedures for public authorities (EU or national). The proposal is included in the Commission's Work and Legislative Programme under the reference 2006/ENTR/044.

22.

Repeal of existing legislation


The adoption of the proposal will not lead to the repeal of existing legislation.

23.

Review/revision/sunset clause


The proposal foresees that technical requirements of the Regulation will be adapted to technical progress in the future.

24.

European Economic Area


The proposed act concerns an EEA matter and should therefore extend to the European Economic Area.