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1 Title of the measure: SPA51-PIVE Efficient-Vehicle Incentive Programme General description PIVE Programme was approved in Cabinet Meeting of 27 September 2012 with an initial budget allocation of 75 million, with a view to promoting the replacement of vehicles, passenger cars and lightcommercial vehicles and enhancing the purchase of efficient vehicles with lower fuel-consumption levels. The Programme will facilitate the scrapping of vehicles over 10 years old in the case of passenger vehicles and of seven years old in the case of light-commercial vehicles, and their replacement with high-efficiency models with lower fuel consumption and CO 2 emission levels. The price of the purchased vehicles, before VAT, cannot be over 25,000 euros, except for electric, plug-in hybrid and range-extended vehicles, in which case the limit is set at 30,000 euros. This very limit will be applied to beneficiaries such as large families applying for vehicles of over five seats, and disabled persons purchasing adapted vehicles. The public aid amounts to a thousand euros per vehicle (1,500 for large families and adapted vehicles). The manufacturer, importer, dealer or selling point is to contribute with an additional discount amounting to the same figure. These aids are compatible with others in force whenever these come from the Regional Governments own funds and from European funds. PIVE Programme management is carried out under IDAE's responsibility, an activity that started with the accession of the sales points to the programme so wishing, and accounts now for a total number of 2,885 car dealers registered as collaborators. PIVE Programme was enforced on 1 October 2012 through a first announcement (PIVE Plan), set out through a Ruling of Ruling of 28 September 2012, of the Secretariat of State for Energy. Its initial success, along with the market forecast which advises maintaining measures of the kind, have accounted for the continuity of PIVE Programme. This is materialised with other seven additional announcements (PIVE 2, PIVE 3, PIVE 4, PIVE 5, PIVE 6, PIVE 7 and PIVE 8 Plans), with slight amendments in the eligibility criteria for financial aid granting (age reduction of the vehicle to be scrapped, acknowledgement of disabled people as beneficiary, etc.). Budget ( million) Nº Vehicles to renew , ,000 70,000 70, , ,080 32, ,938 Launching October 2012 February July October January 2014 June 2014 February 2015 May 2015

2 Impact evaluation Means and outputs PIVE plans began with the publication of the PIVE Program in the Official State Bulletin of October 2, The program remained in force during 4 years through the publication of 8 editions thereof, culminating on July 28, 2016, when the possibility to continue to activate reserves in the PIVE 8 plan once all available funds had been assigned ended. The total funding assigned to the PIVE Program throughout its eight calls has been 1,115 M. Considering the program as a whole, 99.36% of available funds (1,107,865,000 Euros) have been executed. Payments made in the PIVE Program ( ) TOTAL Overall payment (march 2017) 72,226, ,638,000 68,885,500 69,573, ,484, ,674,500 36,812, ,570,500 1,107,865,000 Large families - 2,955,000 1,198,500 1,132,500 2,964,000 4,699, ,000 4,470,000 17,854,500 People with disabilities , , ,000 64, ,500 2,113,500 Regular requests 72,226, ,683,000 67,687,000 68,267, ,105, ,174,000 36,313, ,442,000 1,087,897,000 A total of 1,286,106 funding reservations have been processed, of which 1,173,023 requests have been paid, Out of them, 11,903 correspond to large families and 1,409 to people with disabilities who needed to adapt their vehicles, The program has been especially successful among individual buyers, achieving percentages close to 98% for this type of beneficiaries in each one of its calls throughout the years during which the Program was in force, This preference is also reflected in the proportion of passenger cars compared to commercial vehicles, the former predominating (97,5%) over the latter (2,5%), The average age of the vehicles withdrawn is 17 years, Out of the total vehicles that were withdrawn from circulation, 57% were diesel powered cars and 41% were gasoline cars, The remaining difference was spread across gasoline hybrid vehicles, and vehicles powered by LGP, electricity and natural gas, Distribution of vehicles subsidised by the PIVE program based on technology Diesel 40,86% LGP 0,14% Hybrids-diesel 0,23% Petrol 57,45% Alternative vehicles 1,69% Hybrids-petrol 1,28% Electric 0,03% Natural gas 0,01% Petrol Diesel Hybrids-petrol LGP Hybrids-diesel Electric Natural gas

3 % % The percentage of passenger cars that fell within the plan and that belonged to energy category A amounted to 60%, whereas category B vehicles amounted to 35%, This figure confirms that the PIVE plans have promoted the purchase of more efficient vehicles, which has been promoted by energy labelling, a tool which has proven to be very useful to manage this sort of program, This combined with the average age of the scrapped vehicles highlights the benefit in energy and environmental terms arising from their substitution by other, more efficient models, Distribution of vehicles subsidies by the PIVE program based on their energy class Class A Class B Total A+B Throughout the various plans, there has been a drop in the percentage of gasoil vehicles that were requested, which fell from 61% in the PIVE 1 plan to 47% in the PIVE 8 Plan, Gasoil vehicles subsidised by the PIVE Program Data about energy savings The assessment of the impact of the measure in energy terms has been estimated within the context of the National Energy Efficiency Action Plan (NEAP 4), which was delivered to the European Commission in April 2017, based on the savings calculated in 2014 and 2015, considering the new vehicles purchased since January for this purpose,

4 The table below displays the savings arising from vehicles that have been replaced since then in the context of the PIVE 3, PIVE 4, PIVE 5, PIVE 6, PIVE 7 and PIVE 8 programs and their equivalence in cumulative terms until the year Evaluation of the energy savings Final energy savings (ktoe) Final energy savings (ktoe/año) PIVE Plans Cumulative savings, 2020 (ktoe) ,87 PIVE PIVE PIVE PIVE PIVE PIVE Energy savings have been assessed based on a sample of 213 vehicles in which the scrapped and incentivised vehicles were compared, The conclusions of the analysis of the sample reflect that the new vehicles that were purchased within the context of the PIVE programs reduce fuel consumption and CO 2 emissions by an average of 30% compared to the scrapped vehicles, Considering the service life of the 1,173,023 vehicles that fell under the 8 PIVE editions, assessed at 10 years, total energy savings of 2,850 ktoe are expected, Pursuant to Annex V, section 4 of Directive Notification of methodology to notify the fiscal measures, the Member States shall notify the Commission, by 5 December at the latest, the methodology to apply for the purposes of article 7, section 9, and or article 20, section 6 of Directive 2012/27/EU, As regards this measure, the calculation methodology to establish the savings from this measure will be based on a mixed deemed and ex-post estimate, Other indicators evaluated The assessment of the PIVE Plans as a whole is very positive, having allowed for the renovation of 1,173,023 vehicles, This translates into cumulative energy savings estimated at 826 million litres of fuel per year, which is equivalent to an annual reduction in importation of 5,249,176 barrels of oil, thus lowering energy dependency, Moreover, the Program implies avoiding the emission of 1,696,634 tonnes of CO 2 /year, Interaction of measures National Fund of Energy Efficiency (SPA17) System of Energy Efficiency Obligations (SPA16) Integral Strategy to Impulse the EV/PHEV in Spain (SPA49) Plan to Promote the Environment with Efficient Vehicles (PIMA Aire) (SPA53) MOVELE Programme (SPA52) Registration Tax Link to CO 2 Emissions (SPA46) Plan MOVEA of the Strategy for the Promotion of Alternative Energy Vehicles (VEA) (SPA58)

5 Historical data The renovation of transport fleet has proved to be one of the most efficient measures to reduce energy consumption, with additional positive effects in the field of environmental and road safety issues, In this sense, there are various implemented actions related to the above, The first quote which appears with relation to this measure, without making explicit reference to it, is the Programme of the Energy Efficiency and Conservation (EECP), associated with the National Energy Plan, , In turn and through the PREVER Programme, (SPA2), the objective was the renovation of the car fleet of private cars over 10 years old, aiming to achieve environmental improvements, Other similar measures have been added to those in line with the improvement of energy efficiency in the car fleet, such as the Comprehensive Strategy to Promote the EV/PHEV in Spain (SPA49) and the renewal of the car fleet (SPA44) within Action Plan , References Royal Decree 837/2002, of 2 August, regulating the information in relation to fuel consumption and CO 2 emissions of new passenger cars to be sold or offered in leasing in the Spanish territory, Action Plan , Ministry of Industry, Tourism and Trade-IDAE, (August, 2011), Ruling of 28 September 2012, of the Secretariat of State for Energy, publishing Ruling of 24 September 2012, establishing the regulatory bases for the aid scheme of the Fuel-Efficient Vehicle Incentive Programme, Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC, Ruling of 31 January, of the Secretariat of State for Energy, publishing Ruling of 30 January, of the Management Board of the Institute for Energy Diversification and Saving, establishing the regulatory bases for the second announcement of the aid scheme of the Fuel-Efficient Vehicle Incentive Programme (PIVE-2), Royal Decree 575/, of 26 July, regulating the directly-granted subsidies of the Fuel-Efficient Vehicle Incentive Programme (PIVE-3), Royal Decree 830/, of 25 de October, regulating the directly-granted subsidies of the Fuel-Efficient Vehicle Incentive Programme (PIVE-4), Royal Decree 35/2014 of 24 January, regulating the direct provision of subsidies from the Efficient Vehicle Incentive Programme (PIVE-5), Royal Decree 525/2014, of 20 June, regulating the direct provision of subsidies from the Efficient Vehicle Incentive Programme (PIVE-6)", Royal Decree 988/2014 of 28 November, modifying Royal Decree 525/2014, of 20 June, regulating the direct provision of subsidies from the Efficient Vehicle Incentive Programme (PIVE-6), Royal Decree 124/2015 of 27 February, regulating the direct provision of subsidies from the Efficient Vehicle Incentive Programme (PIVE-7)", Royal Decree 380/2015, of 14 May, regulating the direct provision of subsidies from the Efficient Vehicle Incentive Programme (PIVE-8)",

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