Vehicle Fuel Economy Regulation in Chinese Taipei

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44 th APEC EGEE&C meeting Vehicle Fuel Economy Regulation in Chinese Taipei 2014/10/20 1

1 Background Overview 2 History of Chinese Taipei Vehicle FE Regulation 3 Chinese Taipei Vehicle FE Regulation 4 Future Trends of Vehicle FE Regulation 5 Conclusion 2

1 Background Overview 3

Structure of Total Domestic Consumption By Energy Form By Sector Energy consumption grows significantly in residential, services, and transportation sectors. 4

Chinese Taipei New Vehicle Certification Agencies Environmental Protection Administration, (EPA) Emission and Noise Control Bureau of Energy, Ministry of Economic Affairs, (BOE,MOEA) Fuel Economy Ministry of Transportation and Communications, (MOTC) Safety Type Approval 5

2 History of Chinese Taipei Vehicle FE Regulation 6

History of Chinese Taipei Vehicle Fuel Economy Regulation Authority: Jan. 1988 Jan. 1992 Harmonize with international test methods 7 BUREAU OF ENERGY Ministry of Economic Affairs Jan. 2002 Tightened Standards Passenger car Motorcycle Aug. 1997 Tightened Standards Jul. 1990 Motorcycle Tightened Standards Passenger car Jan. 2002 Standards based on engine displacement classes Passenger Car ( FTP-75) (7 Engine Displacement Classes) Add more classes Motorcycle (Hot Start, 7 Engine Displacement Classes) class 150c.c. and above was being added Passenger Car (FTP-75) (7 weight classes) Passenger car & motorcycle stage I FE standard Passenger car (CNS2733) (7 weight classes) Motorcycle (CNS3105) (hot start, 3 engine displacement classes) Jul. 2004 LDT stage I FE Standard Jan. 2004 Harmonized with international test methods Duel Standards Passenger car (FTP-75,EU) Aug. 4, 2009 Tightened Standards Passenger Car LDT Motorcycle Jul. 2010 Mandatory Vehicle Fuel Efficiency Labeling Rating System Aug. 4, 2009 Revised Test Methods Motorcycle (cold start, 9 engine displacement classes) June 2007 Add more classes Passenger car (8 engine displacement classes) class 5400c.c. and above was being added Aug. 11, 2014 Tightened Standards Passenger Car LDT Motorcycle System Established Management Adjusted Standards Tightened Next Stage 2015+ Aug. 11, 2014 CAFÉ FE Standard (With min. requirement) 7

3 Chinese Taipei Vehicle Fuel Economy Regulation 8

Chinese Taipei Vehicle Fuel Economy Regulation Vehicle Type 1. Passenger Car LDT Motorcycle Competent Authority Bureau of Energy, Ministry of Economic Affairs Source of the regulation Article 15 of the Energy Management Law Contents Vehicles which fail to conform to the permit standards of energy consumption set up by the central competent authority should be prohibited from importing or selling in the domestic market. 2. Any vehicle (exclude motorcycle) shall get one of following FE testing Methods, and meet the FE standard. NEDC FTP-75 Federal Test Procedure (FTP-75) of the United States Directive 1999/100/EC and subsequent amendments 9

Chinese Taipei Vehicle Fuel Economy Standards Engine Displacement (c.c.) 2011 FE Standard (min. requirement) (km/l) Federal Test Procedure (FTP-75) of the United States Passenger Car 2011 FE Standard (min. requirement) (km/l) Directive 1999/100/EC and subsequent amendments 2011 FE Standard (min. requirement) (km/l) Federal Test Procedure (FTP-75) of the United States LDT 2011 FE Standard (min. requirement) (km/l) Directive 1999/100/EC and subsequent amendments Below 1200 16.2 14.1 10.9 9.5 Over 1200 to 1800 13.0 11.3 9.9 8.6 Over 1800 to 2400 11.4 9.9 8.9 7.7 Over 2400 to 3000 10.0 8.7 8.6 7.5 Over 3000 to 3600 9.2 8.0 7.6 6.6 Over 3600 to 4200 8.5 7.4 7.0 6.1 Over 4200 to 5400 7.2 6.3 6.7 5.8 Over 5400 6.5 5.7 6.1 5.3 Engine Displacement (c.c.) Motorcycle 2011 FE Standard (min. requirement) (km/l) Below 50 48.2 Over 50 to 100 40.6 Over 100 to 150 38.0 Over 150 to 250 28.0 Over 250 to 500 21.1 Over 500 to 750 16.6 Over 750 to 1000 15.8 Over 1000 to 1400 14.7 Over1400 13.1 Fuel Economy Test Federal Test Procedure (FTP-75) of the United States Driving Cycle FTP-75 HWFET FE(gasoline, 單位 mpg) Testing 4 Value 5174 10 CWF SG = [( CWF HC) + ( 0.429 CO) + ( 0.273 CO2) ] [( 0.6 SG NHV) + 5471] Directive 1999/100/EC and subsequent amendments NEDC 10

Chinese Taipei Vehicle Fuel Economy Regulation 3. FE labeling in showroom new vehicle random testing : new vehicles were being random selected and performed compliance tests. 4. 5. 污染排放分析儀 汽車污染及油耗測試 Qualified Vehicle FE Homologation Lab 11

4 Future Trends of Vehicle FE Regulation 12

Chinese Taipei 2015 New Vehicles Fuel Efficiency Improve Objective Global warming and greenhouse gas emission issues. Chinese Taipei: fuel efficiency increase 25% in 2015. (base on 2008) Corporate Average Fuel Economy (CAFE) measures had been widely adopted by major countries EU: 2015 19.2 km/l* JAPAN: 2015 18.6 km/l S.KOREA:2015 14.7 km/l CHINA: 2015 14.3 km/l U.S.A: 2015 13.9 km/l 13

Chinese Taipei 2015 CAFE Fuel Economy Standard (Passenger Car) 2011 FE Standard (Passenger Car) Fuel Efficiency Improve 2015 FE Standard (incl. CAFE) (Passenger Car) min. requirement Any passenger car manufactured or imported by any entity shall comply with the following Fuel Economy Standards: CAFE Reference Weight (Kg)(NEDC) 2015 CAFE Average fuel economy limits(km/l)(nedc) Engine Displacement (c.c.) 2015 FE Standard (min. requirement) (km/l) Federal Test Procedure (FTP-75) of the United States 2015 FE Standard (min. requirement) (km/l) Directive 1999/100/EC and subsequent amendments Below 1200 16.2 14.1 Over 1200 to 1800 13.0 11.3 Over 1800 to 2400 11.4 9.9 Over 2400 to 3000 10.0 8.7 Over 3000 to 3600 9.2 8.0 Over 3600 to 4200 8.5 7.4 Over 4200 to 5400 7.2 6.3 Over 5400 6.5 5.7 RW 850 19.2 850<RW 965 18.2 965<RW 1080 17.4 1080<RW 1190 16.6 1190<RW 1305 15.7 1305<RW 1420 15.0 1420<RW 1530 14.1 1530<RW 1640 13.3 1640<RW 1760 12.5 1760<RW 1870 11.8 1870<RW 1980 11.2 1980<RW 2100 10.5 2100<RW 2210 9.7 2210<RW 2380 9.3 2380<RW 2610 8.4 2610<RW 7.2 14

Key Points of Chinese Taipei Next stage CAFE Fuel Economy Standard Effective from Jan.1, 2017 For manufactured or imported motorcycles by any entity to apply for fuel economy certificates shall comply with the requirements AFEV AFETV The average fuel economy value of the manufacturer sold vehicles shall be higher than the required average fuel economy target value. How to Calculate AFETV = n i=1 n i=1 AFEV = n i=1 n i=1 Annual sales Annual sales AFE limits Annual sales Annual sales FE testing value Electric vehicle multiplied by 2.5 Its fuel economy test value may be multiplied by 2.5 as the fuel economy value and being used in the average fuel economy calculation NEDC Test Procedure Only Be tested in accordance with the test procedures prescribed in the European directive 1999/100/EC and its subsequent revisions. 15

5 Conclusion 16

Conclusion Vehicles plays an important role in Chinese Taipei society. Chinese Taipei government has well experience and good command handling vehicle fuel economy regulated issue. Energy crisis and greenhouse gas issues push Chinese Taipei government to set up more strict fuel economy regulation for vehicles. Incorporate CAFE system and more flexible administration scheme will help us achieve government energy saving goal without sacrificing local manufacturers competitiveness. 17

THANKS for YOUR ATTENTION For further information, please feel free to contact with us by e-mail. wdtseng@itri.org.tw 18

Chinese Taipei Next stage CAFE Fuel Economy Standard Effective from Jan.1, 2017 for manufactured or imported motorcycles by any entity to apply for fuel economy certificates shall comply with the following requirements: The average fuel economy value of the manufacturer annual sold vehicles shall be higher than the required average fuel economy target value. AFEV AFETV The average fuel economy value and average fuel economy target values shall be calculated by using the following formula: i: manufactured or imported vehicle type s sequence number. FCi: fuel economy test value (km/liter) for manufactured or imported vehicle type i. Vi: sales number (units) of manufactured or imported vehicle type i. i: manufactured or imported vehicle type s sequence number. Ti: average fuel economy limit (km/liter) of the manufactured or imported vehicle type i in accordance with 5.3.3 of this Article. Vi: sales number (units) of manufactured or imported vehicle type i. Electric vehicle sold by the vehicle entity, its fuel economy test value may be multiplied by 2.5 as the fuel economy value and being used in the average fuel economy calculation 19

Other Details in Chinese Taipei Next stage CAFE Use annual sales number for the AFE calculation. Vehicle entities with annual sales number over 100 units or values over 100 million NT dollars. Being approved by the central competent authority. Calculation by Annual Sales Different manufacturers may be combined for their average fuel economy value calculation. Being approved by the central competent authority. Combined for Calculation Vehicle entities may consent to end their combined calculation of AFE value. The previous earned credits from exceed the required target value may continue to be used by the assigned manufacturer through agreement. The deficiency from under their target value shall be managed in End of Combined accordance with regulation. Earn Credits for Next 3 Year Limitation of Sale Credit Trading When calculated AFE is over the target value The earned credits may be accumulated for the calculation of next 3 year s AFE values. When AFE values are under required target values at specific year The subsequent market sold vehicles must comply with the average fuel economy limits value until the difference of calculated and target values are being complemented Credits could be trade for AEF calculation. Calculation by their annual sales numbers. 20

FE value(km/l) (NEDC) Example Manufacturer: A Year:2017 Model (type) Annual Sales Engine Reference Displacement Weight (c.c.) (kg) FE testing Value (NEDC) (km/l) 2015 Average fuel economy limits (km/l) A 18 1495 1319 16.5 15 B 40 2996 1822 11 11.8 C 45 3999 1985 7.6 10.5 D 18 1497 1195 18.6 15.7 E 12 2494 1715 13.2 12.5 2015 AFE limits (passenger car) Reference Weight (kg) AFEV AFETV Year end date:2017/12/31 Mfr. A AFETV : 12.1 km/l Mfr. A AFEV : 10.6 km/l Credits:- 1.5 (km/l)*133(vehicle)=-199.5 When Credits<0, need to be controlled 2018 sales: Model A:15;Model D:32;Model E:9 Mfr. A AFETV :12.8 km/l Mfr. A AFE V:11.9km/l Credits:-0.9(km/l)*189(vehicle)=-170.1 2017/12/31 2018/1/17 2018/6/5 2019/01/01 Only model A,D,E could be sold during this period. 2018 sales: Model A:75;Model D:99; Model E:63 Mfr. A AFETV :13.6km/l Mfr. A AFEV:13.7km/l Credits:+0.1(km/l)*370(vehicle)=37 Re-settlement All models could be sold when credits > 0 21

Exceptions Light duty vehicle only The previous year sales of a brand by the vehicle entity were less than 300 units and the brand s world annual production is less than 10,000 units. A proposal for its fuel economy improvement. The proposal be submitted and being approved by the central competent authority. To execute its improvement project announced by the central competent authority. And not applicable for the average fuel economy limits prescribed herein. 22