REPORT. 24 March 1997 A4-0116/97 ***I

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1 24 March 1997 A4-0116/97 ***I REPORT on the proposal and the amended proposal for a European Parliament and Council Directive relating to measures to be taken against air pollution by emissions from motor vehicles and amending Council Directives 70/156/EEC and 70/220/EEC (COM(96) C4-0463/96 and COM(97) C4-0091/97-96/0164(COD)) Committee on the Environment, Public Health and Consumer Protection Rapporteur: Mr Bernd Lange

2 C O N T E N T S Page Procedural page... 3 A. LEGISLATIVE PROPOSAL... 4 DRAFT LEGISLATIVE RESOLUTION B. EXPLANATORY STATEMENT Opinion of the Committee on Budgets Opinion of the Committee on Economic and Monetary Affairs Opinion of the Committee on Research, Technological Development and Energy Opinion of the Committee on Transport and Tourism

3 By letter of 29 August 1996 the Commission submitted to Parliament, pursuant to Article 189b(2) of the EC Treaty, the amended proposal for a European Parliament and Council Directive on the measures to be taken against air pollution by emissions from motor vehicles and amending Council Directives 70/156/EEC and 70/220/EEC. At the sitting of 20 September 1996 the President of Parliament announced that he had referred this proposal to the Committee on the Environment, Public Health and Consumer Protection as the committee responsible and the Committee on Budgets, the Committee on Economic and Monetary Affairs, the Committee on Research, Technological Development and Energy and the Committee on Transport and Tourism for their opinions. The Committee on the Environment, Public Health and Consumer Protection appointed Mr Bernd Lange rapporteur on 7 May By letter of 26 February 1997, the Commission informed Parliament that, pursuant to Article 189a(2) of the Treaty establishing the European Community, as amended by the Treaty on European Union, it had decided to alter its proposal for a European Parliament and Council directive concerning the amended proposal for a European Parliament and Council Directive on the measures to be taken against air pollution by emissions from motor vehicles and amending Council Directives 70/156/EEC and 70/220/EEC (COM(97) C4-0091/97). At the sitting of 10 March 1997, the President announced that he had referred the amended proposal to the Committee on the Environment, Public Health and Consumer Protection as the committee responsible and to the Committee on Budgets, the Committee on Economic and Monetary Affairs, the Committee on Research, Technological Development and Energy and the Committee on Transport and Tourism for their opinions. The Committee on the Environment, Public Health and Consumer Protection considered the Commission proposal, the amended proposal and the draft report at its meetings of 4 February and 19 March At the last meeting it adopted the draft legislative resolution by 39 votes to 3 with no abstentions. The following were present for the vote: Collins, chairman; Poggiolini and Lannoye, vice-chairmen; Lange, rapporteur; d'aboville, Alber (for Grossetete), Aparicio Sanchez (for Apolinario), Blokland, Bowe, Cabrol, Correia (for Diez de Rivera Icaza), Eisma, Estevan Bolea (for Campoy Zueco), Flemming, Florenz, Gahrton (for Mrs Breyer), Garosci (for Mr Viceconte), Gonzalez Alvarez, Graenitz, Hardstaff (for Mrs van Putten), Hautala (for Mr McKenna), Hulthén, Jackson, Jensen K., Koch (for Mr Bébéar), Kokkola, Kronberger, Kuhn, Leopardi, Liese (for Mr Trakatellis), Mamere (Mr Tamino), Marinucci, Needle, Olsson, Oomen-Ruijten, Pollack, Roth-Behrendt, Schleicher, Schnellhardt, Valverde Lopez, Virgin and White. The opinions of the Committee on Budgets, the Committee on Economic and Monetary Affairs, the Committee on Research, Technological Development and Energy and the Committee on Transport and Tourism are attached. The report was tabled on 24 March The deadline for tabling amendments will be indicated in the draft agenda for the relevant partsession

4 A LEGISLATIVE PROPOSAL European Parliament and Council Directive relating to measures to be taken against air pollution by emissions from motor vehicles and amending Council Directives 70/156/EEC and 70/220/EEC (COM(96) C4-0463/96, COM(97) C4-0091/97-96/0164(COD)) This proposal is approved with the following amendments: 1 Text proposed by the Commission( ) Amendments by Parliament (Amendment 1) Recital la (new) The cost-benefit analyses should be brought into relationship with the internalization of the external costs in the transport sector, as expressed in the EU-Commission's Green Paper and the corresponding resolution of the European Parliament. (Amendment 2) Recital 3a (new) An additional effort should be undertaken in order to commercialize vehicles, driving on hydrogenic and/or solar or methane energy sources. In the sector of public and collective passengers' transport as well as in the urban freight distribution, a 10% share of vehicles, driving on renewable energy sources, should be reached. (Amendment 3) Fourth recital (add after third sentence) Whereas the proposal should include, besides Whereas the proposal should include, besides car emission standard tightening, car emission standard tightening, complementary measures, like an complementary measures, like an (1) OJ C 77, , p.8-4 -

5 improvement in fuel quality and a improvement in fuel quality and a strengthening of the car fleet inspection and strengthening of the car fleet inspection and maintenance programme; whereas the maintenance programme; whereas the proposal should be based on the establishment proposal should be based on the establishment of air quality criteria and associated emission of air quality criteria and associated emission reduction objectives and an evaluation of the reduction objectives and an evaluation of the cost/effectiveness of each package of cost/effectiveness of each package of measures, taking into account the potential measures, taking into account the potential contribution of other measures such as, inter contribution of other measures such as, inter alia, traffic management, enhancement of alia, traffic management, enhancement of urban public transport, new propulsion urban public transport, new propulsion technologies, or the use of alternative fuels; technologies, or the use of alternative fuels; Whereas, given the urgency of EU action on the limitation of pollutant emissions by motor vehicles, the present proposals are also based on present or anticipated best available anti-pollution technologies which are liable to speed up the replacement of polluting motor vehicles: (Amendment 4) Recital 4a (new) Whereas Directive 94/12/EEC called for the submission of a proposal for this directive by , and whereas in fact the Commission submitted this proposal only on 18 June 1996; whereas this delay is regrettable as it substantially reduces the lead times for the industry to develop the necessary technologies; (Amendment 5) Recital 4b (new) Whereas an adequate normative and fiscal framework should be created as soon as possible to accelerate the introduction onto the market of vehicles with innovative propulsion technologies and vehicles which use alternative fuels with a low environmental impact; whereas the substitution of vehicles with alternative fuels such as natural gas produces a significant improvement in the quality of city air; - 5 -

6 (Amendment 6) Recital 4c (new) Whereas, in order to help resolve the problem of atmospheric pollution, it is necessary to step in with a global strategy, encompassing the technological, management and fiscal aspects, for the development of sustainable mobility, taking into account the specific characteristics of the various European urban areas; (Amendment 7) Fifth recital (add after first sentence) Whereas the Commission has implemented a Whereas the Commission has implemented a European programme on air quality, road European programme on air quality, road traffic emissions, fuels and engines traffic emissions, fuels and engines technologies (the Auto/Oil Programme) with technologies (the Auto/Oil Programme) with a view to fulfilling the requirements of Article a view to fulfilling the requirements of Article 4 of Directive 94/12/EC; 4 of Directive 94/12/EC; Whereas the Commission has implemented the APHEA Project which estimates the external costs of air pollution by motor vehicles at 0,4% of EU GNP, and further assessments conclude that the external costs amount to 3% of EU GNP, and whereas these medical impact costs were not taken into account in the cost-effectiveness approach outlined in Article 4 of Directive 94/12/EU; Whereas the Commission has implemented the 'Car of Tomorrow' Action Plan which strives to contribute to the promotion of the 'Car of Tomorrow' which will be clean, safe, energy efficient and 'intelligent'; Whereas this action plan enforces Community action promoting R&D leading to clean cars and whereas the R&D efforts undertaken in the framework of the 'Car of Tomorrow' Action Plan or EU competitiveness in automobile R&D should not be jeopardised by less ambitious emission values based on the 'cost-effectiveness' approach outlined in the Auto/Oil Programme ; - 6 -

7 (Amendment 8) Fifth recital (add after third sentence) Whereas the auto/oil and EPEFE programmes strove for ensuring that proposals for directives on polluting emissions seek the best solutions for both the citizen and for the economy; Whereas the auto/oil and EPEFE programmes strove to ensure that proposals for directives on polluting emissions seek the best solutions for both the citizen and for the economy; Whereas auto-oil did not take into account medical research studies of the public health impact of pollutant emissions by motor vehicles and studies, of American origin, contain alarming conclusions on the impact on public health of emissions from motor vehicles, especially from diesel motor vehicles ; Whereas the Commission concluded an impact study, the APHEA project, which contains similar alarming conclusions ; Whereas the need for EU action for the forthcoming Steps 2000 and 2005 has become urgent ; (Amendment 9) Recital 5 (fourth sentence) Whereas a cost/effectiveness study within the Whereas it has become clear that a further Auto/Oil Programme has shown that a further improvement of car emission technology is improvement of car emission technology was necessary with a view to achieving air quality necessary with a view to achieving air quality in year 2010 as described in the in year 2010 as described in the Communication by the Commission on the Communication by the Commission on the Auto/Oil Programme; Auto/Oil Programme; (Amendment 10) Recital 5a (new) Whereas there has been clear public criticism of the planning and implementation of the Auto/Oil Programme and there has been absolutely no transparency and no participation by social groupings, political decision-makers or relevant non-governmental organizations; whereas imprecise methodology and the failure to take individual findings into account necessitate an expansion of results in some areas; - 7 -

8 (Amendment 11) Recital 5b (new) Whereas there were difficulties with the cost/benefit analysis of the Auto/Oil Programme in particular; whereas true cost calculations would have to give greater weight to factors such as displacement as a result of competitive developments, the real distribution of costs between the industries taking part with a view to the annual reduction of emissions, costs avoided elsewhere by investment in a given area and reductions in the burden on the economy; (Amendment 12) Recital 6a (new) Whereas, if the coherent Community strategy required to reduce vehicle emissions is to be developed, and in the interests of smooth technological development, proposals for reducing commercial vehicle emissions should be submitted simultaneously with the present proposal for a directive; - 8 -

9 (Amendment 13) Recital 8 Whereas reductions of the Type I test limits Whereas reductions of the Type I test limits applicable from year 2000 corresponding to applicable from year 2000 have been identified abatements of 40% nitrogen oxides, 40% total as key measures to achieve sufficient mediumhydrocarbons, 30% carbon monoxide for term air quality; whereas separate limit values gasoline passenger cars, 20% nitrogen oxides, are now normally fixed for gasoline and diesel 20% for the combined value for hydrocarbons vehicles in order to monitor the emissions of plus nitrogen oxides, 40% carbon monoxide, hydrocarbons and nitrogen oxides; whereas 35% particulate matters for indirect injection these reductions will take into account the diesel passenger cars and 40% nitrogen effect on real emissions of a modification also oxides, 40% for the combined value for adopted for the test cycle with the inclusion of hydrocarbons plus nitrogen oxides, 40% the first 40 seconds after initiation of the startcarbon monoxide and 50% particulate matters up procedure to introduce greater realism into have, for direct injection diesel passenger cars, the test conditions; been identified as key measures to achieve sufficient medium-term air quality; whereas these reductions have been applied to hydrocarbons and nitrogen oxides with the assumption that nitrogen oxides represent respectively 45% and 80% of the weight of the combined value measured for gasoline/diesel light duty vehicles complying with Directive 94/12/EC; whereas separate limit values are now normally fixed for gasoline vehicles in order to monitor the emissions of both pollutants; whereas a combined limit value is maintained for diesel vehicles for which the Stage 2000 standards are the most demanding, with a view to facilitating engineering of future engines; whereas these reductions will take into account the effect on real emissions of a modification also adopted for the test cycle with a view to better representing emissions after a cold start ('deletion of 40 s'); - 9 -

10 (Amendment 14) Recital 9 Whereas new provisions for on-board Whereas new provisions for on-board diagnostics (OBD) should be introduced with diagnostics (OBD) should be introduced with a view to permitting an immediate detection of a view to permitting an immediate detection of failure of anti-pollution vehicle equipment and failure of anti-pollution vehicle equipment and thus allowing a significant up-grading of the thus allowing a significant up-grading of the maintenance of initial emissions performances maintenance of initial emissions performance on in-use vehicles through periodical or on in-use vehicles through periodical or kerbside control; whereas, however, OBD are kerbside control; whereas the alternative of at a less developed stage for diesel vehicles installing an on-board measurement system and can be fitted on such vehicles only as an (OBM) to detect any faults by measuring option; individual pollutants emitted shall be permissible if it meets the requirements for OBD systems; whereas in order that the Member States may ensure that vehicle owners meet their obligation to repair faults once they have been indicated, the odometer reading when the fault occurs shall be recorded; (Amendment 15) Recital 9a (new) Whereas on-board diagnostics systems must offer unrestricted and standardized access to all persons having a legitimate interest; whereas motor vehicle manufacturers must provide such persons with all the information required for the diagnosis, servicing or repair of the vehicle; whereas such access and such information are required to ensure that vehicles may be inspected, serviced and repaired without hindrance anywhere in the European Union, and that competition in the market for vehicle parts and repairs is not distorted to the disadvantage of parts manufacturers, independent vehicle-part wholesalers, independent repair garages and consumers; whereas manufacturers of spare or retrofit parts will however in their turn be obliged to make the parts they manufacture compatible with the specifications of the on-board diagnostic system concerned, with a view to fault-free operation and assuring the user against malfunctions;

11 (Amendment 16) Recital 10a (new) Whereas to adapt the behaviour of the exhaust emission control systems of positive ignition engines to the actual requirements of practice, a new test should be introduced to measure emissions at low temperatures; (Amendment 17) Recital 12 Whereas a new method for conformity of Whereas a new two-stage method for production checking on in-use vehicles has conformity of production checking on in-use been identified as a cost/effective vehicles has been identified as a cost/effective accompanying measure; and is included in the accompanying measure; and is included in the emission directive with the objective of emission directive with the objective of implementation in year 2001; whereas implementation in year 2001; whereas Directive 70/156/EEC should be amended Directive 70/156/EEC should be amended accordingly; accordingly; (Amendment 18) Recital 12a (new) The introduction of the OBD systems and kerbside inspections makes it possible for the old Type V tests to be abolished (service life of the emission-reducing components); (Amendment 19) Recital 13 Whereas Member States should be allowed to encourage, by means of tax incentives, the introduction of vehicles which satisfy the improved requirements of this Directive; Whereas Member States should be allowed to encourage, by means of tax incentives, the introduction of vehicles which satisfy in advance the mandatory emission limit values set out for 2000 and 2005,

12 (Amendment 20) Recital 13 Whereas Member States should be allowed to encourage, by means of tax incentives, the introduction of vehicles which satisfy the improved requirements of this Directive; Whereas Member States should be allowed to encourage, by means of tax incentives, the introduction of vehicles which satisfy the improved requirements of this Directive; whereas such incentives should be introduced by the individual Member States provided that they do not produce distortions in the single market; (Amendment 21) Recital 14 Whereas, it is necessary to establish indicative limit values to be applied from 2005 which can also be used for the purposes of, inter alia, encouraging the early introduction of vehicles containing the most advanced anti-pollution equipment; Whereas, with a view to the harmonious development of the internal market and the protection of consumer interests, a binding longterm approach is required; whereas it is therefore necessary to establish a two-stage approach with mandatory limit values to be applied from 2000 and 2005 which can be used for the purposes of, inter alia, encouraging the early introduction of vehicles containing the most advanced anti-pollution equipment; (Amendment 22) Recital 15 Whereas these indicative limit values should be Whereas the Commission will closely monitor confirmed by a directive of the European technological developments in emission control Parliament and of the Council on the basis of and, where appropriate, will propose the a proposal to be made by the Commission not adaptation of this directive; whereas the later than 31 December 1998; whereas the Commission will launch a research project Commission will simultaneously propose entitled 'emission control in the 21st century' to measures to improve the quality of fuels for deal with outstanding questions, the findings of the year 2005; whereas both directives should which will be incorporated in a proposal for enter into force together in 2005; future legislation after the year 2005;

13 (Amendment 23) Recital 15a (new) Whereas the Member States should take measures to encourage the retrofitting of older vehicles with emission control devices and components; (Amendment 24) Recital 15b (new) Whereas Member States should take measures to encourage faster progress towards replacing existing vehicles with low-emission vehicles; (Amendment 25) Recital 15c (new) Whereas there is at present no legislation on the reduction of CO2 emissions in vehicle exhausts; whereas the Commission will pursue the integrated approach and as soon as possible, but not later than by 31 December 1998 will propose an amendment to this directive to cover reductions in CO2 emissions with the aim of making the 5 litre average car mandatory for new petrol cars from 1 January 2005 (and the 4.5 litre average car mandatory for new diesel cars from 1 January 2005) and making the 3 litre average car mandatory for new petrol and diesel cars from 1 January 2010;

14 (Amendment 26) Article 1, 2(b), second subparagraph If, by inspecting vehicles in service using the procedures laid down in the appropriate directives, a Member State finds that vehicles in service accompanied by a certificate of conformity do not comply with the quantified durability provisions of a separate directive pursuant to which they have been type- approved, and if the plan submitted by the manufacturer of these vehicles pursuant to the procedure laid down in the appropriate directives for ensuring compliance with the provisions governing the operation of these vehicles is not accepted by the Member State after consultation, it shall require the Member State which granted the type approval to verify that vehicles in service comply with these provisions. It may do so by repeating the survey on vehicles in use or by scrutiny of the reports on surveys of vehicles in use by the Member State. The action required shall be taken as soon as possible and in any case within 3 months of the date of the request. If a Member State which has granted typeapproval finds that vehicles in service accompanied by a certificate of conformity do not comply with the quantified durability provisions of a separate directive pursuant to which they have been type-approved, it shall decide on measures to be taken in order to ensure that vehicles in service will again comply with these provisions. The approval authorities of the Member State shall advise those of the other Member States of the measures planned. The relevant authorities in each Member State are competent to decide on the advisability of implementation in their territory of the planned measures. (Amendment 27) Article 1, 2(b), third subparagraph If a Member State demonstrates that vehicles in service accompanied by a certificate of conformity do not comply with the quantified durability provisions of a separate directive pursuant to which they have been typeapproved, it shall request the Member State which granted the type-approval to verify that by survey on vehicles in use, if necessary in cooperation with the competent authorities of the other Member States vehicles in service comply with these provisions. Such action shall be taken as soon as possible and in any case within the six months of the date of the request If the Member State which granted the type approval finds by its own surveys of vehicles in service or by considering a request by another Member State pursuant to the second subparagraph, finds that vehicles in service accompanied by a certificate of conformity do not comply with the quantified durability provisions of a separate directive pursuant to which they have been type-approved, it shall decide what measures are to be taken to ensure that vehicles in service again comply with these provisions. The approval authorities of this Member State shall inform the approval authorities of the other Member States of the measures planned. The relevant authorities in each Member State are competent to decide on the advisability of implementation in their territory of the planned measures'.

15 (Amendment 28) Article 1, 2(b), fourth subparagraph When non-compliance for a vehicle in service is established in accordance with the third subparagraph, the vehicle approval authority takes the measures referred to in the second subparagraph. Delete (Amendment 29) Article 1, 2(c) (c) Paragraphs 5 and 6 are replaced by the (c) Paragraphs 5 and 6 are replaced by the following: following: '5. The approval authorities of the '5. The approval authorities of the Member States shall inform each other Member States shall inform each other within one month of any withdrawal of within one month of any withdrawal of type-approval and of the reasons for type-approval and of the reasons for such a measure. In case of in-service such a measure. In case of in-service survey under Article 10(2), the survey by inspecting vehicles in use approval authorities of the Member pursuant to the procedure laid down in State shall inform each other of the the appropriate directives, the Member decisions taken on the basis of the States shall inform each other of the results of the survey. results of the survey and of the measures taken to restore the compliance with the rules of the vehicles investigated. 6. If the Member State which granted 6. If the Member State which granted type-approval disputes the failure to type-approval disputes the failure to conform or to comply demonstrated to conform or to comply demonstrated to it, the Member States concerned shall it, the Member States concerned shall endeavour to settle the dispute. The endeavour to settle the dispute. The Commission shall be kept informed and Commission shall be kept informed and shall, where necessary, hold shall, where necessary, hold appropriate consultations for the appropriate consultations for the purpose of reaching a settlement.' purpose of reaching a settlement.'

16 (Amendment 30) Article 1(3) In Article 12, the following subparagraph is added: 'All decisions taken pursuant to the provisions adopted in implementation of this Directive and adopting planned measures to restore the conformity of vehicles in service, shall state in detail the reasons on which they are based. The competent authorities of each Member State which decide to initiate the planned measures shall notify the party concerned who shall, at the same time, be informed of the remedies available to him under the laws in force in the Member States and of the time limits allowed for the exercise of such remedies.' In Article 12, the following subparagraph is added: 'All decisions taken pursuant to the provisions adopted in implementation of this Directive and adopting planned measures to restore the conformity of vehicles in service, shall state the reasons on which they are based. The competent authorities of each Member State which decide to initiate the planned measures shall notify the party concerned who shall, at the same time, be informed of the remedies available to him under the laws in force in the Member States and of the time limits allowed for the exercise of such remedies.' (Amendment 31) ARTICLE 1(3a) (new) Article 13 (Directive 70/156/EEC) 3a. Article 13 is amended as follows: "The Commission shall be assisted by a committee composed of the representatives from each Member State and chaired by the representative of the Commission. The representative of the Commission shall submit to the committee a draft of the general measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the committee shall be weighted in the manner set out in that Article. The chairman shall not vote. The Commission shall adopt the measures envisaged if they are in accordance with the opinion of the committee

17 If the measures envisaged are not in accordance with the opinion of the committee, or if no opinion is delivered, the Commission shall, without delay, submit to the Council a proposal relating to the measures to be taken." (Amendment 32) Article 3(4) (new) Subject to the provisions of Article 6, with effect from 1 January 2005 Member States: - may no longer grant EC type-approval pursuant to Article 4(1) of Directive 70/156/EEC, and - shall refuse national type-approval, for a new type of vehicle on grounds relating to air pollution by emissions if it fails to comply with the provisions of Directive 70/220/EEC, as amended by this Directive. For the Type I test the limit values set out in row B of the Table in Section of Annex I to Directive 70/220/EEC are to be used. (Amendment 33) Article 3(5) (new) With effect from 1 January 2006, Member States shall: - consider certificates of conformity which accompany new vehicles pursuant to Directive 70/156/EEC as no longer valid for the purpose of Article 7(1) of that Directive, and - refuse the registration, sale or entry into service of new vehicles which are not accompanied by a certificate of conformity in accordance with Directive 70/156/EEC,

18 on grounds relating to air pollution by emissions, if the vehicles fail to comply with the provisions of Directive 70/220/EEC, as amended by this Directive. For the Type I test the limit values set out in row B of the Table in Section of Annex I to Directive 70/220/EEC are to be used. (Amendment 34) ARTICLE 3a (new) With the introduction of on-board diagnostics and in-service surveys to ensure durability the type V test (durability of anti-pollution devices) will become redundant. In its place a new type V test for positive ignition engines shall be introduced to ascertain average lowtemperature carbon monoxide/hydrocarbon tailpipe emissions after a cold start. (Amendment 35) Article 4 Member States may make provision for tax incentives only in respect of motor vehicles which comply with Directive 70/220/EEC, as amended by this Directive. Such incentives shall comply with the provisions of the Treaty and satisfy the following conditions: Member States may make provision for tax incentives only in respect of motor vehicles which comply with Directive 70/220/EEC, as amended by this Directive. Such incentives shall comply with the provisions of the Treaty and satisfy the following conditions: - they shall apply to all new vehicles offered - they shall apply to all new vehicles offered for sale on the market of a Member State for sale on the market of a Member State which comply in advance with either the which comply in advance with the mandatory limit values set out in row A of mandatory limit values set out in row A the Table in Section of Annex I to for 2000 and row B for 2005 in the Table Directive 70/220/EEC, as amended by this in Section of Annex I to Directive Directive, or, the indicative limit values set 70/220/EEC, as amended by this out in row B of the same Table; Directive;

19 - they shall be terminated with effect from - they shall be terminated with effect from the mandatory application of the emission the mandatory application of the emission limit values laid in Article 3(3) for new limit values laid down in Article 3(3) for motor vehicles, or by 1 January 2005 in new motor vehicles; Thereafter, Member the case of the indicative limit values set States shall still be allowed to use tax out in row B of the Table in Section incentives for vehicles which meet lower of Annex I to Directive limit values than the mandatory values laid 70/220/EEC, as amended by this down in the directives; Directive;; - for each type of motor vehicle, they shall - for each type of motor vehicle, they shall be for an amount lower than the additional be for an amount lower than the additional cost of the technical solutions introduced cost of the technical solutions introduced to ensure compliance with the values set in to ensure compliance with the values set in Article 3(3), or the indicative limit values Article 3(3) and of their installation on the set out in row B of the Table in Section vehicle of Annex I to Directive 70/220/EEC, as amended by this Directive, and of their installation on the vehicle. Member States may introduce tax or financial incentives for the re-equipment of older vehicles to meet the values laid down in this directive, and for laying up vehicles which do not comply. The Commission shall be informed in sufficient time of plans to institute or change the tax incentives referred to in the first paragraph, so that it can submit its observations The Commission shall be informed in sufficient time of plans to institute or change the tax or financial incentives referred to in the first and second paragraphs, so that it can submit its observations. (Amendment 36) Article 5, first paragraph The Commission will propose to the European The Commission will monitor the development Parliament and the Council a further tightening of motor vehicle emission reduction of the emission standards of vehicles falling technology and if appropriate propose to the within the scope of this Directive no later than European Parliament and the Council the 12 months from the date of adoption of this adaptation of this Directive to technological Directive but in any event not later than 31 development. December It shall be based on a revised and enhanced version of the methodology used to prepare measures for this Directive

20 (Amendment 37) Article 5, second paragraph The strategy put forward in the proposal shall be designed to produce effects to meet the requirements of the Community air quality standards and related objectives at least cost and shall take account of: Further proposals to amend this Directive and proposals for legislation to reduce emissions still further after 2005 shall take the following into account: - trends in air quality; - the causal relationship between emissions and harm to the quality of the environment and human health; - noxious pollutant emissions in Europe - possible improvements in the test from transport and non-transport sources and procedure for particulate emissions; the contribution that existing, pending and potential emission reduction measures from all sources could make to improve air quality; - technical developments with regard to - emissions from direct-injection petrol vehicle technologies as well as new propulsion engines including particulate emissions; technologies (e.g. electric propulsion, fuel cells); and refinery technologies; - the potential of alternative fuels such as - developments in exhaust purification at full compressed natural gas (CNG), Liquid load; Petroleum Gas (LPG), Dimethyl Ether (DME) and biofuels to reduce vehicle emissions; - possible improvements in the test - the potential for reducing vehicle emissions procedures, in particular the addition of a new by new propulsion technologies and alternative test procedure at low temperatures; fuels; - the potential of technical, non-technical - identification of pollutant and CO2 and local measures to reduce emissions; in this emissions from vehicles using new forms of context the contribution of transport and other propulsion or alternative fuels; policy measures such as traffic management, enhanced urban public transport and vehicles scrappage schemes should be evaluated; - the contribution that selective and - non-member countries' strategies for differentiated fiscal measures could make to improving air quality and the emission limit reducing emissions, whilst not negatively values applied in those countries; impacting the functioning of the internal market; - the effects of any measures on CO2 emissions;

21 - the strategies followed by non-member countries to improve air quality and the emission limit values applied therein; - the supply situation and qualities of crude oil available to Europe. (Amendment 38) Article 5, third and fourth paragraphs The proposal shall contain, inter alia, mandatory emission limit values to be applied from 1 January 2005 confirming or modifying the indicative limit values stipulated in Section , row B of Annex 1 to Directive 70/220/EEC, as amended by this Directive. In addition, the proposal shall establish whether the framework under which Member States can make provision for tax incentives established in Directive 70/220/EEC, as amended by this Directive, should be revised. Delete The proposal shall be submitted to the European Parliament and the Council at the same time as the proposal referred to in Article 9 of Directive 96/ /EC of the European Parliament and of the Council (on the quality of petrol and diesel fuels); the measures shall enter into effect at the same time as the measures foreseen in the proposal to be submitted in accordance with Article 9 of that Directive

22 (Amendment 39) ARTICLE 6a (new) - By 31 December 1998 the Commission shall submit a proposal to the European Parliament and the Council for an amendment to Directive 70/20/EEC regulating the reduction of CO2 emissions, by making the 5 litre average car mandatory for new petrol cars from 1 January 2005 (and the 4.5 litre average car mandatory for new diesel cars from 1 January 2005) and making the 3 litre average car mandatory for new petrol and diesel cars from 1 January A type-approval for vehicles with alternative propulsion systems and vehicles using alternative fuels shall be defined by 30 June 1998, by means of a proposal for a directive which the Commission shall submit to the European Parliament and the Council. - The Commission shall submit to the European Parliament and the Council by 1998 a Green Paper on sustainable mobility in urban areas. The Green Paper shall take account of the integration of technological, managerial and fiscal aspects of the various modes of transport and shall give reference models for the management of urban mobility, taking account of the special characteristics and diversity of European urban areas. (Amendment 40) ARTICLE 6b(new) 1. By 1 January 1998 the Commission shall submit a report to the European Parliament and the Council on the development of On- Board Diagnostics giving its opinion on the need for an extension of the On-Board Diagnostic procedure, on the drawing up of an ISO standard format for repair information on the basis of SAE J 2008 and on the requirements for the operation of an on-board Measurement system. The Commission report shall also consider the use of on board diagnostic systems for the purposes of evaluating traffic safety

23 On the basis of the report the Commission will submit a proposal to the European Parliament and Council for an addition to this Directive to enter into force at the same time as this Directive. The proposal shall include: - an extension of the OBD rules to cover other electronic vehicle control systems relating to active and passive safety, - the extension of the scope of On-Board Diagnostics to light and heavy commercial vehicles, - the technical specifications and corresponding annexes in order to make an onboard measurement system indicating possible faults by measuring individual pollutant components of emissions the equivalent of the On-Board Diagnostic system. 2. By 1 January 1999 the Commission shall take appropriate measures to ensure that persons with a legitimate interest are not prevented by on-board diagnostic systems from undertaking the development, production or use of spare parts or retro-fitted components to perform the emissionmonitoring functions laid down in this Directive, by the use of such parts unjustifiably activating fault warnings. 3. By 1 January 1999 the Commission shall take appropriate action to ensure that the spare or retro-fit components produced and marketed by component manufacturers meet the specifications of the appropriate on-board Diagnostic system so that faults are not indicated as a result of the unavailability of specifications

24 (Amendment 41) Annex 1. The list of Annexes is amended as follows: 1. The list of Annexes is amended as follows: - the indication to Annex VI reads as - the indication to Annex VI reads as follows: follows 'Annex VI: Type IV test 'Annex VI: Type IV test (Determination of evaporative (Determination of evaporative emissions from vehicles with spark- emissions from vehicles with sparkignition engines) ignition engines) Appendix 1: Calibration frequency and methods Appendix 1: Calibration frequency and methods Appendix 2: Diurnal ambient Appendix 2: Diurnal ambient temperature profile for the diurnal temperature profile for the diurnal emission test' emission test' - Annex VII: - Annex VIII: - Annex VIII: The title reads as follows: 'Type V test: determination of average low-temperature carbon monoxide and hydrocarbon exhaust emissions after a cold start' The title reads as follows: The title reads as follows: 'Specifications 'Specifications of reference fuels' of reference fuels' - The following items are added: - The following items are added: 'Annex X: Control of compliance of - 'Annex X: Control of compliance of vehicles in service vehicles in service Appendix I: Selection of test vehicles and failure criteria Annex XI: On-board diagnostics (OBD) for motor vehicles Appendix 1: Functional aspects of OBD systems Appendix 2: Diagnostic services (Test Modes) Appendix 3: OBD tools Appendix 4: Numeric codes Annex XI: On-board diagnostics (OBD) for motor vehicles Appendix 1: Functional aspects of OBD systems Appendix 2: Diagnostic services (Test Modes) Appendix 3: OBD tools Appendix 4: Numeric codes

25 Appendix 5: Addendum to the Information Document Appendix 6: Essential characteristics of the vehicle family Appendix 7: Addendum to the EC type- approval certificate' Appendix 5: Addendum to the Information Document Appendix 6: Essential characteristics of the vehicle family Appendix 7: Addendum to the EC type-approval certificate' (Amendment 42) Annex 4a (new) - Annex 1 ' Defeat device means any component which measures the temperature, vehicle speed, engine revolutions, gear, intake vacuum or any other parameter with a view to activating, modulating, delaying or deactivating the operation of a component of the emission reducing system so that the effectiveness of the emission reducing system is reduced under conditions typically arising in normal use of the vehicle. Such a component will not be regarded as a defeat device if: - the need for the device is justified to protect the engine against damage or accident; - the device operates only when needed during starting; - the corresponding conditions in the type I or type V tests are substantially covered' (Amendment 43) Annex 5a (new) - Annex 1 A new section is added to read as follows: ' A statement by the manufacturer on the durability of the anti-pollution devices and components in compliance with the requirements of Section 8.1.'

26 (Amendment 44) ANNEX, POINT 24a (new) Annex IX, Appendix 1, Section 5.2.1, last indent a (new) 24a. The following new indent is added: Type V test (Verifying average low temperature carbon monoxide/hydrocarbon tailpipe emissions after a cold start (= - 7( C). (Amendment 45) ANNEX, POINT 24b (new) Annex IX, Appendix 1, Section 5.2.1a (new) 24b. The following new section is added: 5.2.1a. Vehicles with compression ignition engines shall be subject to the type I test (verifying of average tailpipe emissions after a cold start ( = -7( C)

27 (Amendment 46) Figure Commission text 10. Figure is replaced by the following new figure Figure Different routes for type-approval and extensions Type approval test Positive-ignition engined Compression ignition engined vehicles of categories M and N vehicles of categories M and N 1 1 Type I Yes Yes (mass 3,5 t) (mass 3,5 t) Type II Yes - (mass 3,5 t) Type III Yes - Type IV Yes - (mass 3,5 t) Type V Yes Yes (mass 3,5 t) (mass 3,5 t) In Service Compliance Yes Yes (Section 8) (mass 3,5 t) (mass 3,5 t) On Board Diagnostics Yes Optional (Section 9) (Capacity 6 occupants) (mass 2.5 t) Extension conditions Section 6 - Section 6 - M 2 and N2 with reference mass not more than 2840 kg

28 Amended text Type approval test Positive-ignition engined Compression ignition engined vehicles of categories M and N vehicles of categories M and N 1 1 Type I Yes Yes (mass 3,5 t) (mass 3,5 t) Type II Yes - (mass 3,5 t) Type III Yes - Type IV Yes - (mass 3,5 t) Type V Yes - (mass 3,5 t) In Service Compliance Yes Yes (Section 8) (mass 3,5 t) (mass 3,5 t) On Board Diagnostics Yes Yes (Section 9) (mass 3.5 t) (mass 3.5 t) Extension conditions Section 6 - Section 6 - M 2 and N2 with reference mass not more than 2840 kg

29 (Amendment 47) (Replaces Annex I Section ) (The Commission's proposals in brackets.) Limit values Category of Vehicle Reference Mass of Mass of Hydrocarbons Mass of Oxides of Mass of Mass Carbon (HC) Nitrogen Particulates Monoxide (NOx) (CO) (PM) RW L1 L2 L3 L4 (KG) (g/km) (g/km) (g/km) (g/km) Cate- Class Petrol Diesel Petrol Diesel Petrol Diesel Diesel gory (2) A M - all 2,3 0,64 0,12(0,2) 0,07(-) 0,15 0,40(0,5) (2000) 0,04(0,05) B (2) M - all 1,00 0,50 0, (-) 0,08 0,19(0,25) 0,02(0,025) (2005) VALUES FOR 2005 ARE NOT INDICATIVE BUT MANDATORY

30 (Amendment 48) ANNEX, POINT 11a (new) 11a. Section to read as follows: " Type V test (verification of average low-temperature carbon monoxide/hydrocarbon tailpipe emissions after a cold start) This test shall apply to vehicles of classes M and N (mass 3.5t) equipped with a positive ignition engine The vehicle is placed on a chassis dynamometer equipped with a means of load and inertia simulation The test consists of the four elementary urban cycles of part I of the test. The Part I test is described in Annex III, Appendix 1 and shown in figures III.1.1. and III.1.2. of the Appendix. The low-temperature test shall last 780 seconds in total. It shall be conducted without interruption and shall begin as the engine is started The low-temperature test shall normally be carried out at an ambient o temperature of - 7 C; alternatively, a test may o be carried out at +8 C; if the manufacturer states that if the limit values for a type V test o at +8 C are complied with then the limit values will also be met for a type V test at - o 7C. Before the test is carried out the vehicle must be uniformly conditioned to ensure that the test results are reproducible. Conditioning and other test procedures are to be carried out as described in Annex VII

31 During the tests the exhaust gases are diluted and a proportional sample collected. The exhaust gases of the vehicle tested are diluted, collected and analysed following the procedure described in Annex VII and the total volume of the diluted exhaust is measured. The diluted exhaust is analysed for carbon monoxide and hydrocarbons Subject to the requirements of and the test must be repeated three times. The resulting masses of carbon monoxide and hydrocarbon emissions must be less than the limits shown in the table below. Carbon Hydro Test Temperature Monoxide Carbons L1 (g/km) L2 (g/km) o plus 8 C o minus 7 C Notwithstanding the requirements of , for each pollutant no more than one of the three resulting masses obtained may exceed by more than 10% the limit prescribed, provided the arithmetical mean of the three results is below the prescribed limit. Where the prescribed limits are exceeded for more than one pollutant it is immaterial whether this occurs in the same test or in different tests The number of tests prescribed in may, at the request of the manufacturer, be increased to 10 provided that the arithmetical mean of the first three results obtained falls between 100 and 110% of the limit. In this case, the requirement is only that the arithmetical mean of all ten results obtained must be less than the limit value The number of tests prescribed in may be reduced pursuant to and

32 (Amendment 49) ANNEX, POINT 11c (new) Annex I, Section Only one test is performed if the result obtained for each pollutant in the first test is less than or equal to 0.70 L If the requirement of is not satisfied, only two tests are performed if, for each pollutant, the result of the first test is less than or equal to 0.85 L and the sum of the first two results is less than or equal to 1.70 L and the result of the second test is less than or equal to L. (V L and V 1 + V L and V 2 L)." 11c. Section 6.3 shall read as follows: "6.3. Verification of average low-temperature carbon monoxide/hydrocarbon tailpipe emissions after a cold start (Type V test)" Section shall read as follows:

33 "Emission reduction system: - catalysers - number of catalysers - size and shape of catalysers (monolith volume within +/- 10%) - catalyser type (oxidation catalyser, threeway catalyser) - precious metal content (identical or higher) - support (structure and material) - cell density - type of catalyser housing - position of catalysers (location and dimension in exhaust system such that temperature variations of more than +/- 50K do not occur); this temperature change to be tested after stabilizing at a speed of 120 kph and the traction test of the Type I test - secondary air supply - with and without - type (pulsair, airpumps etc.) - lambda probe in front of catalyser - extra fittings (heated catalyser etc.)" Section is deleted

34 (Amendment 50) Annex - Annex I 14. A new Section 8 and 9 are added to read 14. A new Section 8 and 9 are added to read as follows: as follows: '8. 8. CONTROL OF COMPLIANCE OF CONTROL OF COMPLIANCE OF VEHICLES IN SERVICE VEHICLES IN SERVICE 8.1. In order to satisfy the provisions of 8.1. In order to satisfy the provisions of Section 5.1.1, vehicles in service properly used Section 5.1.1, vehicles in service properly used and maintained shall comply with the and maintained shall comply with the provisions of Sections (tailpipe provisions of Sections (tailpipe emissions) and (evaporative emissions) emissions) and (evaporative emissions) for up to 5 years of age or km, which for up to 10 years of age or km, occurs first. Compliance with these provisions whichever occurs first. Compliance of a will be verified in accordance with the vehicle type with these provisions will be provisions of Article 11 of Directive verified in accordance with the provisions of 70/156/EEC by the authorities which have Article 11 of Directive 70/156/EEC by the approved the vehicle type concerned with the competent authorities with the help of surveys help of surveys on vehicles in service belonging on vehicles in service belonging to this vehicle to this vehicle type. The procedure to be type. The procedure to be followed for such in followed for such in service survey is laid service survey is laid down in Annex X. down in Annex X. (Amendment 51) ANNEX, POINT 14 Annex I, Section 9.1 (1) 9.1. Vehicles of category M equipped with (1) (1) 9.1. Vehicles of category M and N with a positive-ignition engines, except maximum mass of up to kg shall be - vehicles designed to carry more than six fitted with an on-board diagnostic (OBD) occupants including the driver, system for emission control in accordance with - vehicles whose maximum mass exceeds Annex XI. If other vehicles of category M are 2500 kg, fitted with an on-board diagnostic (OBD) shall be fitted with an on-board diagnostic system, the OBD system must meet the (OBD) system for the emission control in requirements of Annex XI." accordance with Annex XI. If other vehicles of category M are fitted with an on-board diagnostic (OBD) system, the OBD system must meet the requirements of Annex XI.'

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