# EUR-Lex - 52013PC0506 - EN

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# 52013PC0506

**Proposal for a COUNCIL REGULATION on the Fuel Cells and Hydrogen 2 Joint Undertaking /* COM/2013/0506 final - 2013/0245 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           Context of the proposal

1.1.        General context

One of the main aims of Horizon 2020, the
Framework Programme for Research and Innovation covering the period 2014-2020,
is to strengthen European industry through actions supporting research and
innovation across a range of industrial sectors. In particular, it provides for
the creation of public-private partnerships that will contribute to tackling
some of the key challenges Europe is facing.

This proposal provides for a prolongation
of the Joint Undertaking in the field of Fuel Cells and Hydrogen launched under
Seventh Framework Programme, in line with the Commission Communication'
Public-private partnerships, in Horizon 2020: a powerful tool to deliver on
innovation and growth in Europe'[1],
Commission Communications 'Energy 2020 - A strategy for
competitive, sustainable and secure energy'[2]
and 'Clean Power for Transport: A European alternative
fuels'[3].

1.2.        Reasons and objectives for
a JU in the area of Fuel Cells and Hydrogen

A JU in the area of Fuel Cells and Hydrogen
is needed:

· 
to address two key challenges for the EU - to
ensure the energy security of supply and to boost/maintain competitiveness;

· 
to support EU policies on sustainable energy and
transport, climate change, the environment and industrial competitiveness as
embodied in the Europe 2020 strategy for growth, and help achieve the EU’s
overarching objective of smart, sustainable and inclusive growth;

· 
to tackle a series of obstacles to effective
research and innovation in this area: high risks, high cost of R&D,
knowledge spillovers, market failures. Industry on its own only cannot invest
in view of these obstacles, and hence public support is needed;

· 
to counteract the fragmentation of the Member
States programmes and achieve the coordinated, long-term, large-scale,
transnational, cross-sectoral effort required;

· 
to help industry to set a long-term research and
innovation agenda, create the necessary critical mass, leverage private
investment, provide stable funding, facilitate knowledge sharing, reduce risk,
lower costs and reduce time to market.

The general objective of the FCH 2 Joint
Undertaking for the period of 2014-2024 is to develop a strong, sustainable and
globally competitive fuel cells and hydrogen sector in the Union, in particular
to:

– 
reduce the production cost of fuel cell systems
to be used in transport applications, while increasing their lifetime to levels competitive with conventional
technologies,

– 
increase the electrical efficiency and the
durability of the different fuel cells used for power production, while
reducing costs, to levels competitive with conventional technologies,

– 
increase the energy efficiency of production of
hydrogen from water electrolysis while reducing capital costs, so that the
combination of the hydrogen and the fuel cell system is competitive with the
alternatives available in the marketplace, and

– 
demonstrate on a large scale the feasibility of
using hydrogen to support integration of renewable energy sources into the
energy systems, including through its use as a competitive energy storage
medium for electricity produced from renewable energy sources.

1.3.        Building on past
experience

The proposed Joint Undertaking 2 builds
upon the achievements of the previous one under FP7. The main achievements of
the existing FCH Joint Undertaking have so far been the creation of strong
partnership, the leveraging of public and private funding and the strong
involvement of industry (in particular SMEs). Also, the existing FCH Joint
Undertaking has put in place a significant project portfolio of strategic
importance. For both energy and transport applications substantial
technological progress took place. Market introduction has been achieved for
some early applications such as forklifts and small back-up power units. It has
also encouraged industry, Member States and the research community to commit
more of their own resources. Large industry and SME participation is stable and
significantly higher than in FP7-Energy.

The first interim evaluation, finalised in
2011 with the help of independent experts, concluded that the Joint Undertaking
approach generally succeeds to enhance public-private activities in technology
development and demonstration, and provides stability for the R&D
community. The overall technical objectives of the FCH Joint Undertaking were
judged ambitious and competitive.

Although the FCH sector has reached an
advanced stage of innovation it is still a pre-mature and vulnerable one.
Carrying FCH technologies from the drawing board to full deployment in a global
competitive environment requires a substantial increase in public and private
R&D investment in Member States as well as in Associated Countries. The
public means available in the EU for FCH research, both in the Member States
and in the Framework Programme will not suffice to cover the estimated
financial resources needed to implement the FCH Technology Roadmap for the
period 2014-2020[4].
But an ambitious public policy can provide the required positive environment to
leverage the private investment necessary to complement the public support and
fulfil the R&D needs.

The proposal for the continuation of the
FCH Joint Undertaking includes provisions aiming at simplification and
flexibility of operations.

2.           Consultations with the stakeholders and
Impact Assessment

Results of consultations

· 
Stakeholder groups representing the industry and
research communities, the Member States and the general public have been
consulted on the continuation of FCH Joint Undertaking under Horizon 2020. Several
workshops and ad-hoc meetings were organised in the course of 2012 to discuss
priorities for research on fuel cells and hydrogen, and define the best
mechanism to implement the research & innovation programme at European
level. In the second part of 2012, a stakeholder survey was sent to all the
beneficiaries of the FCH Joint Undertaking and 154 responses were received,
including 46 from the Industry Grouping. 93% of the beneficiaries that
responded indicated that they favour the continuation of the FCH Joint
Undertaking. Moreover, 70% of the members of the Industry Grouping have seen
their turnover on FCH increase since 2007 and 70% have raised their
expenditures on R&D. About half of the responding members reported
increased expenditures on R&D as a direct result of the establishment of
the JU.

· 
A public consultation was conducted
between July and October 2012 and 127 responses were received. Most respondents
agree on the fact that FCH technology will play a notable role in the future EU
low-carbon energy and transport sectors (98% of respondents), for the EU energy
security of supply (94%) and for the EU industrial competitiveness (95%). The
results of the public consultations concerning a Public-Private Partnership
(PPP) in Fuel Cell and Hydrogen under Horizon 2020 are available on-line at: http://ec.europa.eu/research/consultations/fch_h2020/fch-f2020-consultation-results.pdf

Impact Assessment

The proposed Regulation has been subject to a Commission Impact
Assessment which is attached to the proposal.

3.           Legal elements of the proposal

· 
Summary of the proposed action

The proposal consists of a Council
Regulation on the Fuel Cells and Hydrogen 2 Joint Undertaking. The FCH Joint
Undertaking was initially established by Council Regulation (EC) No 521/2008 of
30 May 2008 which is to be repealed with effect from 1 January 2014.

· 
Legal basis

The proposal is based on Article 187 of the Treaty on the Functioning of the
European Union.

The Rules for Participation and
Dissemination of Horizon 2020 will apply.

· 
Subsidiarity and proportionality

The objectives of the proposal cannot be
sufficiently achieved by the Member States because the scale of the challenge
exceeds the capacity of any Member State to act alone. Significant differences
existing among national programmes, their fragmentation and sometimes
overlapping call for a more efficient intervention at European Union level. The
pooling and coordination of research and development efforts at EU level stand
a better chance of success, given the trans-national nature of the
infrastructure and technologies to be developed, and also the need to achieve a
sufficient mass of resources. The intervention of the European Union will help
to rationalise research programmes and ensure inter-operability of the
developed systems not only through common pre-normative research to support the
preparation of standards but also through the de facto standardisation
which will arise from the close research cooperation and the trans-national
demonstration projects. This standardisation will open a wider market and
promote competition. The scope of the proposal should encourage the Member
States to pursue complementary initiatives at national level, in the spirit of
reinforcing the European Research Area - indeed the very intention of the Joint
undertaking is to leverage these national and regional programmes to make best
use of the combined efforts.

In accordance with the principle of proportionality,
the provisions of this regulation do not go beyond what is necessary to achieve
its objectives.

· 
Choice of instrument

Proposed instrument: regulation.

Other means would not be adequate for the
following reason:

The creation of an
undertaking in which the Union participates requires a Council regulation.

4.           Budgetary implication

The EU budget, totalling up to EUR 700 million[5] (including EFTA), will come
from the ‘Secure, clean and efficient energy’ and the ‘Smart, green and
integrated transport’ H2020 societal challenges budget.

The administrative costs of the FCH 2 Joint
Undertaking shall not exceed EUR 40 million and shall be covered in cash, on an
annual basis, divided equally between the Union and the Members other than the Union. The Union shall contribute with 50%, the Industry Grouping
with 43% and the Research Grouping with 7%.

The research activities shall be funded by
the EU and the constituent entities of the Members other than the Union participating
in the indirect actions, with the EU contribution paid in cash and the
contributions from the constituent entities of the other Members made in-kind within
the indirect actions.

5.           Optional elements

· 
Transition period

Following the adoption of the draft
Regulation on Fuel Cells and Hydrogen, the Regulation 521/2008 will be
repealed; however actions initiated under Regulation (EC) No 521/2008 and
financial obligations related to those actions shall continue to be governed by
that Regulation until their completion.

· 
Review

The European Commission will present an
annual report on the progress achieved by the FCH 2 Joint Undertaking. The
European Commission will also perform a mid-term review and a final review at
the termination of the Joint Undertaking.

Discharge for the implementation of the Union
contribution shall be part of the discharge given by the European Parliament,
upon recommendation of the Council, to the Commission in accordance with the
procedure provided for in Article 319 of the Treaty.

· 
Review/revision/sunset clause

The proposal includes
a review clause.

The proposal includes a sunset clause.

2013/0245 (NLE)

Proposal for a

COUNCIL REGULATION

on the Fuel Cells and Hydrogen 2 Joint
Undertaking

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 187 and the first
paragraph of Article 188 thereof,

Having regard to the proposal from the
European Commission,

Having regard to the opinion of the
European Parliament[6]

Having regard to the opinion of the
Economic and Social Committee[7],

Whereas:

(1)       Public-private
partnerships in the form of Joint Technology Initiatives were initially provided
for in Decision No 1982/2006/EC of the European Parliament and of the Council
of 18 December 2006 concerning the Seventh Framework programme of the European
Community for research, technological development and demonstration activities
(2007-2013)[8] .

(2)       Council Decision 2006/971/EC
of 19 December 2006 concerning the Specific Programme ‘Cooperation’ implementing
the Seventh Framework Programme of the European Community for research,
technological development and demonstration activities (2007-2013)[9] identified specific
public-private partnerships to be supported, including a public-private
partnership in the specific area of the Fuel Cells and Hydrogen Joint Technology
Initiative.

(3)       Europe 2020 Strategy[10] underscores the need to
develop favourable conditions for investment in knowledge and innovation so as
to achieve smart, sustainable and inclusive growth in the Union. Both European
Parliament and Council have endorsed this strategy.

(4)       Regulation (EU) No .../2013
of the European Parliament and of the Council of ... 2013 establishing Horizon
2020 - The Framework Programme for Research and Innovation (2014-2020)[11] aims to achieve a greater
impact on research and innovation by combining Horizon 2020 Framework Programme
and private sector funds in public-private partnerships in key areas where
research and innovation can contribute to Union's wider competitiveness goals
and help tackle societal challenges. The involvement of the Union in those
partnerships may take the form of financial contributions to joint undertakings
established on the basis of Article 187 of the Treaty under Decision No
1982/2006/EC.

(5)       In accordance with
Decision (EU) No [...]/2013 of the Council of [...] 2013 establishing the Specific
Programme implementing Horizon 2020 (2014-2020)[12] further support should be provided to
joint undertakings established under Decision (EU) No 1982/2006/EC under the conditions specified in
Decision (EU) No [...]/2013.

(6)       The Fuel Cells and
Hydrogen Joint Undertaking, set up by Regulation (EC) No. 521(2008) of the
Council of 30 May 2008 setting up the Fuel Cells and Hydrogen Joint Undertaking[13] has demonstrated the potential
of hydrogen as an energy carrier, and of fuel cells as energy converters, to
offer a pathway for clean systems that reduce emissions, enhance energy
security, and stimulate the economy. The interim evaluation of the FCH Joint
Undertaking[14]
has shown that the Joint Undertaking has served as a platform for creating of a
strong partnership, for leveraging public and private funding and for the
strong involvement of industry, in particular SMEs. The also recommended increase
in the activities on hydrogen production, storage and distribution has been
taken up in the new objectives. Its research area should therefore continue to
be supported with the aim of developing, to the point of market introduction, a
portfolio of clean, efficient and affordable solutions.

(7)       Continued support for the Fuel Cells and
Hydrogen research programme should also take into
account the experience acquired from the operations of the Fuel Cells and Hydrogen Joint Undertaking including
the results of its first interim evaluation, the results of stakeholders' recommendations[15], and be implemented using a
more fit-for-purpose structure and rules in order to enhance efficiency and to ensure
simplification. To this effect, the Fuel Cells and Hydrogen 2 Joint Undertaking
should adopt financial rules specific to its needs in accordance with Article
209 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and the
Council of 25 October 2012 on the financial rules applicable to the general
budget of the Union[16].

(8)       The Members other than the
Union of the FCH Joint Undertaking have expressed in writing their agreement for
the research activities in the area of the FCH Joint Undertaking to be pursued within
a structure better adapted to the nature of a public-private partnership. It is
appropriate that the Members other than the Union to the Fuel Cells and
Hydrogen 2 Joint Undertaking accept the Statutes set out in Annex to this
Regulation by means of a letter of endorsement.

(9)       In order to achieve its
objectives, the Fuel Cells and Hydrogen 2 Joint Undertaking should provide
financial support mainly in the form of grants to participants following open
and competitive calls for proposals.

(10)     Contributions from Members
other than the Union and their constituent entities should not only be limited
to the administrative costs of the Fuel Cells and Hydrogen 2 Joint Undertaking
and to the co-financing required to carry out research and innovation actions
supported by the Fuel Cells and Hydrogen 2 Joint Undertaking.

(11)     Their contributions should
also relate to additional activities to be undertaken by the Members other than
the Union or their constituent entities, as specified in an additional
activities plan. In order to get a proper overview of
the leverage effect those additional activities should represent contributions
to the broader FCH Joint Technology Initiative.

(12)     The
specificities of the Fuel Cells and Hydrogen sector, in particular that it is
still a pre-mature sector, without clear returns of investments and its main
benefits being societal ones, justify that the Union contribution is higher
than the contribution from the Members other than the Union. In order to
encourage broader representativeness of the groupings that are members of the Fuel
Cells and Hydrogen 2 Joint Undertaking and support participation of new
constituent entities in the Joint Technology Initiative, the Union contribution
should be divided in two instalments, the second of which should be made
conditional upon additional commitments, in particular from new constituent
entities.

(13)     In
assessing the overal impact of the Fuel Cells and Hydrogen Joint Technology
Initiative, the investments from all legal entities other than the Union contributing
to the objectives of the Fuel Cells and Hydrogen Joint Technology Initiative
will be taken into account. These overall investments to the Fuel Cells and
Hydrogen Joint Technology Initiative are expected to amount to at least EUR 700
million.

(14)     Participation
in indirect actions funded by the Fuel Cells and Hydrogen 2 Joint Undertaking should
comply with Regulation (EU) No ... /2013 of the European Parliament and of the
Council of ... 2013 laying down the rules for the participation and dissemination
in ‘Horizon 2020 - the Framework Programme for Research and Innovation
(2014-2020)’[17].

(15)     The
Union financial contribution should be managed in accordance with the principle
of sound financial management and with the relevant rules on indirect
management set out in Regulation (EU, Euratom) No 966/2012 and Commission delegated
Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012[18].

(16)     Audits of recipients of Union
funds under this Regulation should be carried out in such a manner that
administrative burden is reduced, in compliance with Regulation (EU) No .../2013
[the Horizon 2020 Framework Programme].

(17)     The financial interests of
the Union and of the other members of the Fuel Cells and Hydrogen 2 Joint
Undertaking should be protected through proportionate measures throughout the
expenditure cycle, including the prevention, detection and investigation of
irregularities, the recovery of funds lost, wrongly paid or incorrectly used
and, where appropriate, administrative and financial penalties in accordance with
Regulation (EU, Euratom) No 966/2012.

(18)     The Commission's internal
auditor should exercise the same powers over the FCH 2 Joint Undertaking as
those exercised in respect of the Commission.

(19)     In accordance with Article
287(1) of the Treaty, the constituent instrument of bodies, offices or agencies
set up by the Union may preclude the examination of the accounts of all revenue
and expenditure of those bodies, offices or agencies by the Court of Auditors. In
accordance with Article 60(5) of Regulation (EU, Euratom) No 966/2012, the
accounts of the bodies under Article 209 Regulation (EU, Euratom) No 966/2012 are
to be examined by an independent audit body which is to give an opinion inter
alia on the reliability of the accounts and the legality and regularity of the
underlying transactions. Avoidance of duplication of the examination of the
accounts justifies that the accounts of the Fuel Cells and Hydrogen 2 Joint
Undertaking should not be subject to the examination by the Court of Auditors.

(20)     In accordance with the
principles of subsidiarity and proportionality as set out in Article 5 of the
Treaty on the European Union, the objectives of the Fuel Cells and Hydrogen 2
Joint Undertaking in strengthening industrial research and innovation across
the Union cannot be sufficiently achieved by the Member States and can
therefore, by reason of avoiding duplication, retaining critical mass and
ensuring that public financing is used in an optimal way, be better achieved by
the Union; this Regulation confines itself to the minimum required in order to
achieve those objectives and does not go beyond what is necessary for that
purpose;

(21)     The FCH Joint Undertaking
was set up for a period up to 31 December 2017. The Fuel Cells and Hydrogen 2
Joint Undertaking should provide continued support to the Fuel Cells and
Hydrogen research programme by enlarging the scope of the activities under a
modified set of rules. The transition from the FCH Joint Undertaking to the
Fuel Cells and Hydrogen 2 Joint Undertaking should be aligned and synchronized
with the transition from the Seventh Framework Programme to the Horizon 2020
Framework Programme to ensure optimal use of the funding available for
research. In the interest of legal certainty and clarity, Council Regulation
(EC) No. 521/2008 should therefore be repealed and transitional provisions
should be set out.

HAS ADOPTED THIS REGULATION:

Article 1
Establishment

1.           For the implementation of
the Joint Technology Initiative on Fuel Cells and Hydrogen, a joint undertaking
within the meaning of Article 187 of the Treaty (hereinafter ‘FCH 2 Joint
Undertaking’), is established for a period from 1 January 2014 until 31
December 2024.

2.           The FCH 2 Joint
Undertaking shall replace and succeed the FCH Joint Undertaking as established
by Council Regulation (EC) No 521/2008.

3.           The FCH 2 Joint
Undertaking shall constitute a body entrusted with the implementation of a public-private
partnership referred to in Article 209 of Regulation (EU, Euratom) No 966/2012 of the European
Parliament and the Council[19].

4.           The FCH
2 Joint Undertaking shall have legal personality. In each of the Member States, it shall
enjoy the most extensive legal capacity accorded to legal persons under the
laws of those Member States. It may, in particular, acquire or dispose of
movable and immovable property and may be party to legal proceedings.

5.           The seat of the FCH 2
Joint Undertaking shall be located in Brussels, Belgium.

6.           The Statutes of the FCH 2
Joint Undertaking are set out in the Annex.

Article 2
Objectives

1.           The FCH 2 Joint
Undertaking shall have the following objectives:

(a) 
to contribute to the implementation of Regulation
(EU) No .../2013 of the European Parliament and of the Council of ... 2013
establishing the Horizon 2020 Framework Programme, and in particular part ... of
Decision No .../2013/EU of the Council of ... 2013 establishing the Horizon 2020
Specific Programme;

(b) 
to contribute to the objectives of the Joint
Technology Initiative on Fuel Cells and Hydrogen, through the development of a
strong, sustainable and globally competitive fuel cells and hydrogen sector in
the Union.

2.           It shall, in particular:

– 
reduce the production cost of fuel cell systems
to be used in transport applications, while increasing their lifetime to levels competitive with conventional technologies,

– 
increase the electrical efficiency and the
durability of the different fuel cells used for power production, while
reducing costs, to levels competitive with conventional technologies,

– 
increase the energy efficiency of production of
hydrogen from water electrolysis while reducing capital costs, so that the
combination of the hydrogen and the fuel cell system is competitive with the
alternatives available in the marketplace, and

– 
demonstrate on a large scale the feasibility of
using hydrogen to support integration of renewable energy sources into the
energy systems, including through its use as a competitive energy storage
medium for electricity produced from renewable energy sources.

Article 3
Union financial contribution

1.           The maximum Union contribution,
including EFTA appropriations, to the FCH 2 Joint Undertaking to cover administrative
costs and operational costs shall be EUR 700 million, which shall consist of:

(c) 
up to EUR 600 million corresponding to the
contribution committed in accordance with Article 4(1),

(d) 
up to EUR 100 million to match any additional contribution
committed above the minimum amount specified in Article 4(1).

The contribution shall be paid from the
appropriations in the general budget of the Union allocated to the Horizon 2020
Specific Programme implementing the Horizon 2020 Framework Programme in
accordance with the relevant provisions of Article 58(1)(c)(iv) and Articles 60
and 61 of Regulation (EU, Euratom) No 966/2012 for bodies referred to in
Article 209 of that Regulation.

2.           The arrangements for the
Union financial contribution shall be set out in a delegation agreement and
annual transfer of funds agreements to be concluded between the Commission, on
behalf of the Union, and the FCH 2 Joint Undertaking.

3.           The delegation agreement
referred to in paragraph 2 shall address the elements set out in Article 58(3)
and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and in Article
40 of Commission delegated Regulation (EU) No 1268/2012 as well as inter alia the
following:

(a) 
the requirements for the FCH 2 Joint Undertaking's
contribution regarding the relevant performance indicators referred to in Annex
II to Decision No .../EU [the Specific Programme implementing the Horizon 2020
Framework Programme];

(b) 
the requirements for the FCH 2 Joint Undertaking's
contribution in view of the monitoring referred to in Annex III to Decision No
.../EU [the Specific Programme implementing the Horizon 2020 Framework
Programme];

(c) 
the specific performance indicators related to
the functioning of the FCH 2 Joint Undertaking;

(d) 
the arrangements regarding the provision of data
necessary to ensure that the Commission is able to meet its dissemination and
reporting obligations;

(e) 
the use of and changes to human resources, in
particular recruitment by function group, grade and category, the
reclassification exercise and any changes to the number of staff members.

Article 4
Contributions of Members other than the Union

1.           The Members of the FCH 2
Joint Undertaking other than the Union shall make or arrange for their
constituent entities to make a total contribution of at least EUR 400 million over
the period defined in Article 1.

2.           The contribution referred
to in paragraph 1 shall consist of the following:

(a) 
contributions to the FCH 2 Joint Undertaking as
laid down in clause 13(2) and clause 13(3)(b) of the Statutes contained in the Annex.

(b) 
in-kind contributions of at least EUR 300 million
over the period defined in Article 1 by the Members other than the Union or
their constituent entities, consisting of the costs incurred by them in
implementing additional activities outside the work plan of the FCH 2 Joint
Undertaking contributing to the objectives of the FCH Joint Technology
Initiative. Other Union funding programmes may support those costs in
compliance with the applicable rules and procedures. In such cases, Union
financing shall not substitute for the in kind contributions from the Members
other than the Union or their constituent entities.

Those costs referred to in point (b) shall not
be eligible for financial support by the FCH 2 Joint Undertaking. The
corresponding activities shall be set out in an annual additional activities plan
that shall indicate the estimated value of those contributions.

3.           The Members of the FCH 2
Joint Undertaking other than the Union shall report each year by 31 January to
the Governing Board of the FCH 2 Joint Undertaking on the value of the
contributions referred to in paragraph 2 made in each of the previous financial
years.

4.           For the purpose of valuing
the contributions referred to in point (b) of paragraph 2 and clause 13(3)(b) of
the Statutes contained in the Annex, the costs shall be determined according to
the usual cost accounting practices of the entities concerned, to the applicable accounting standards of the country where each
entity is established, and to the applicable International
Accounting Standards / International Financial Reporting Standards. The costs
shall be certified by an independent external auditor appointed by the entity
concerned. The valuation of the contributions shall be verified by the FCH 2
Joint Undertaking. In case of remaining uncertainties, it may be audited by the
FCH 2 Joint Undertaking.

5.           The Commission may
terminate, proportionally reduce or suspend the Union financial contribution to
the FCH 2 Joint Undertaking or trigger the winding up procedure referred to in
clause 21(2) of the Statutes contained in the Annex if those Members or their
constituent entities do not contribute, contribute only partially or contribute
late with regard to the contributions referred to in paragraph 2.

Article 5
Financial rules

The FCH 2 Joint Undertaking shall adopt its
specific financial rules in accordance with Article 209 of Regulation (EU,
Euratom) No 966/2012 and Regulation (EU) No ... [Delegated Regulation on the
model Financial Regulation for PPPs.]

Article 6
Staff

1.           The Staff Regulations of Officials
and the Conditions of Employment of Other Servants of the European Union as
laid down by Council Regulation (EEC, Euratom, ECSC) No 259/68[20] and the rules adopted by
agreement between the institutions of the Union for giving effect to those
Staff Regulations and those Conditions of Employment of Other Servants shall
apply to the staff employed by the FCH 2 Joint Undertaking.

2.           The Governing Board shall
exercise, with respect to the staff of the FCH 2 Joint Undertaking, the powers
conferred by the Staff Regulations on the Appointing Authority and by the
Conditions of Employment of Other Servants on the Authority Empowered to
Conclude Contract of Employment (hereinafter ‘the appointing authority powers’).

The Governing Board shall adopt, in accordance
with Article 110 of the Staff Regulations, a decision based on Article 2(1) of
the Staff Regulations and Article 6 of the Conditions of Employment of Other
Servants delegating the relevant appointing authority powers to the Executive
Director and defining the conditions under which this delegation of powers can
be suspended. The Executive Director is authorised to sub-delegate those
powers.

Where exceptional circumstances so require, the
Governing Board may by way of a decision temporarily suspend the delegation of
the appointing authority powers to the Executive Director and those
sub-delegated by the latter and exercise them itself or delegate them to one of
its members or to a staff member of the Joint Undertaking other than the
Executive Director.

3.           The Governing Board shall
adopt appropriate implementing rules to the Staff Regulations and the
Conditions of Employment of Other Servants in accordance with Article 110 of
the Staff Regulations.

4.           The staff resources shall
be determined by the staff establishment plan of the FCH 2 Joint Undertaking
indicating the number of temporary posts by function group and by grade and the
number of contract staff expressed in full-time equivalents, in line with its
annual budget.

5.           The staff of the FCH 2
Joint Undertaking shall consist of temporary staff and contract staff.

6.           All costs related to the
staff shall be borne by the FCH 2 Joint Undertaking.

Article 7
Seconded national experts and trainees

1.           The FCH 2 Joint
Undertaking may make use of seconded national experts and trainees not employed
by the Joint Undertaking. The number of seconded national experts expressed in
full-time equivalents shall be added to information on staff as referred to in
Article 6(4) of this Regulation in line with the annual budget.

2.           The Governing Board shall
adopt a decision laying down rules on the secondment of national experts to the
FCH 2 Joint Undertaking and on the use of trainees.

Article 8
Privileges and Immunities

The Protocol on the Privileges and
Immunities of the Union shall apply to the FCH 2 Joint Undertaking and its
staff.

Article 9
Liability of the FCH 2 Joint Undertaking

1.           The contractual liability
of the FCH 2 Joint Undertaking shall be governed by the relevant contractual
provisions and by the law applicable to the agreement, decision or contract in
question.

2.           In the case of
non-contractual liability, the FCH 2 Joint Undertaking shall, in accordance
with the general principles common to the laws of the Member States, make good
any damage caused by its staff in the performance of their duties.

3.           Any payment by the FCH 2
Joint Undertaking in respect of the liability referred to in paragraphs 1 and 2
and the costs and expenses incurred in connection therewith shall be considered
as expenditure of the FCH 2 Joint Undertaking and shall be covered by the
resources of the FCH 2 Joint Undertaking.

4.           The FCH 2 Joint
Undertaking shall be solely responsible for meeting its obligations.

Article 10
Jurisdiction of the Court of Justice and applicable law

1.           The Court of Justice shall
have jurisdiction under the conditions laid down in the Treaty as well as in
the following cases:

(a) 
in any dispute between the Members which relates
to the subject matter of this Regulation;

(b) 
pursuant to any arbitration clause contained in
agreements, decisions or contracts concluded by the FCH 2 Joint Undertaking;

(c) 
in disputes relating to compensation for damage
caused by the staff of the FCH 2 Joint Undertaking in the performance of their
duties;

(d) 
in any dispute between the FCH 2 Joint
Undertaking and its servants within the limits and under the conditions laid
down in the Staff Regulations of Officials and the Conditions of Employment of
Other Servants of the European Union.

2.           Regarding any matter not
covered by this Regulation or by other acts of Union law, the law of the State
where the seat of the FCH 2 Joint Undertaking is located shall apply.

Article 11
Evaluation

1.           By 31 December 2017 the
Commission shall conduct an interim evaluation of the FCH 2 Joint Undertaking,
which shall assess, notably, the level of participation in, and contribution to,
the indirect actions both by the constituent entities of the Members other than
the Union, and also by other legal entities. The Commission shall communicate
the conclusions thereof, accompanied by its observations, to the European
Parliament and to the Council by 30 June 2018.

2.           On the basis of the
conclusions of the interim evaluation referred to in paragraph 1, the
Commission may act in accordance with Article 4(5), or take any other
appropriate action.

3.           Within six months after
the winding up of the FCH 2 Joint Undertaking, but no later than two years
after the triggering of the winding up procedure referred to
in clause 21 of the Statutes contained in the Annex,
the Commission shall conduct a final evaluation of the FCH 2 Joint Undertaking.
The results of that final evaluation shall be presented to the European
Parliament and to the Council.

Article 12
Discharge

1.           The discharge of the budget
implementation with regard to the Union
contribution to the FCH 2 Joint Undertaking shall be part of the discharge
given by the European Parliament, upon recommendation of the Council, to the
Commission in accordance with the procedure provided for in Article 319 of the
Treaty.

2.           The FCH 2 Joint
Undertaking shall fully cooperate with the institutions involved in the
discharge procedure and provide, as appropriate, any necessary additional
information. In this context, it may be requested to be represented in meetings
with the relevant institutions or bodies and assist the Commission authorising
officer by delegation.

Article 13
Ex-post audits

1.           Ex-post audits of
expenditure on indirect actions shall be carried out by the FCH 2 Joint
Undertaking in accordance with Article 23 of Regulation (EU) No ... [the Horizon
2020 Framework Programme] as part of the Horizon 2020 Framework Programme
indirect actions.

2.           To ensure coherence, the
Commission may decide to carry out the audits referred to in paragraph 1.

Article 14
Protection of the financial interests of the Members

1.           Without prejudice to
clause 17(4) of the Statutes contained in the Annex, the FCH 2 Joint
Undertaking shall grant Commission staff and other persons authorised by it, as
well as the Court of Auditors, access to its sites and premises and to all the
information, including information in electronic format, needed in order to
conduct their audits.

2.           The European Anti-fraud
Office (OLAF) may carry out investigations, including on-the-spot checks and
inspections, in accordance with the provisions and procedures laid down in
Regulation (EC) No 1073/1999 of the European Parliament and of the Council of
25 May 1999 concerning investigations conducted by the European Anti-Fraud
Office (OLAF)[21]
and Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning
on-the-spot checks and inspections carried out by the Commission in order to
protect the European Communities' financial interests against fraud and other
irregularities [22]
with a view to establishing whether there has been fraud, corruption or any
other illegal activity affecting the financial interests of the Union in
connection with an agreement or decision or a contract funded under this
Regulation.

3.           Without prejudice to
paragraphs 1 and 2, contracts, agreements and decisions, resulting from the
implementation of this Regulation shall contain provisions expressly empowering
the Commission, the FCH 2 Joint Undertaking, the Court of Auditors and OLAF to
conduct such audits and investigations, according to their respective
competences.

4.           The FCH 2 Joint
Undertaking shall ensure that the financial interests of its Members are
adequately protected by carrying out or commissioning appropriate internal and
external controls.

5.           The FCH 2 Joint
Undertaking shall accede to the Interinstitutional Agreement of 25 May 1999
between the European Parliament, the Council and the Commission concerning
internal investigations by OLAF[23].
The FCH 2 Joint Undertaking shall adopt the necessary measures needed to
facilitate internal investigations conducted by OLAF.

Article 15
Confidentiality

Without prejudice to Article 16, the FCH 2
Joint Undertaking shall ensure the protection of sensitive information whose
disclosure could damage the interests of its Members or of participants in the
activities of the FCH 2 Joint Undertaking.

Article 16
Transparency

1.           Regulation (EC) No
1049/2001 of the European Parliament and of the Council regarding public access
to European Parliament, Council and Commission documents[24], shall apply to documents held
by the FCH 2 Joint Undertaking.

2.           The FCH 2 Joint
Undertaking Governing Board may adopt practical arrangements for implementing
Regulation (EC) No 1049/2001.

3.           Without prejudice to
Article 10, decisions taken by the FCH 2 Joint Undertaking pursuant to Article
8 of Regulation (EC) No 1049/2001 may form the subject of a complaint to the
Ombudsman under the conditions laid down in Article 228 of the Treaty.

Article 17
Rules for participation and dissemination

Regulation (EU) No ... [Rules for the
participation and dissemination in Horizon 2020] shall apply to the actions
funded by the FCH 2 Joint Undertaking. In accordance with that Regulation, the FCH
2 Joint Undertaking shall be considered as a funding body and shall provide
financial support to indirect actions as set out in clause 1 of the Statutes
contained in the Annex.

Article 18
Support from the host State

An administrative agreement may be
concluded between the FCH 2 Joint Undertaking and the State where its seat is
located concerning privileges and immunities and other support to be provided
by that State to the FCH 2 Joint Undertaking.

Article 19
Repeal and transitional provisions

1.           Regulation (EC) No 521/2008
setting up the FCH Joint Undertaking is repealed with effect from 1 January
2014.

2.           Without prejudice to
paragraph 1, actions initiated under Regulation (EC) No 521/2008 and financial
obligations related to those actions shall continue to be governed by that
Regulation until their completion.

The interim evaluation referred to in Article 11(1)
shall include a final evaluation of the FCH Joint Undertaking operations under
Regulation (EC) No 521/2008.

3.           This Regulation shall not
affect the rights and obligations of staff engaged under Regulation (EC) No 521/2008.

The employment contracts of staff referred to
in the first subparagraph may be renewed under this Regulation in accordance
with the Staff Regulations.

In particular, the Executive Director appointed
under Regulation No 521/2008 shall, for the remaining period of term of office,
be assigned to the functions of the Executive Director as provided for in this
Regulation with effect from 1 January 2014. The other conditions of contract shall
remain unchanged.

4.           Unless otherwise agreed
between Members pursuant to Regulation (EC) No 521/2008, all rights and
obligations including assets, debts or liabilities of the Members pursuant to
that Regulation are transferred to the Members pursuant to this Regulation.

5.           Any unused appropriations
under Regulation (EC) No 521/2008 shall be transferred to the FCH 2 Joint
Undertaking.

Article 20
Entry into force

This
Regulation shall enter into force on the twentieth day following that of its
publication in the Official Journal of the European Union.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For
the Council

The
President

ANNEX: 
 STATUTES OF THE FCH 2 JOINT UNDERTAKING

1 - Tasks

The FCH 2 Joint Undertaking shall carry out
the following tasks:

(a) 
supporting financially research and innovation
indirect actions mainly in the form of grants;

(b) 
reaching the critical mass of research effort to
give confidence to industry, public and private investors, decision makers and
other stakeholders to embark on a long-term programme;

(c) 
integrating research and technology development and
focus on achieving long-term sustainability and industrial competitiveness
targets for cost, performance and durability and overcome critical technology
bottlenecks;

(d) 
stimulating innovation and the emergence of new
value chains;

(e) 
facilitating interaction between industry,
universities and research centres;

(f) 
promoting the involvement of SMEs in its
activities, in line with the objectives of the Horizon 2020 Framework Programme;

(g) 
performing broadly-conceived
socio-techno-economic research to assess and monitor technological progress and
nontechnical barriers to market entry;

(h) 
encouraging the development of new regulations
and standards and review existing ones to eliminate artificial barriers to
market entry and to support inter-changeability, inter-operability,
cross-border trading, and export markets;

(i) 
ensuring the efficient management of the Joint
Undertaking on Fuel Cells and Hydrogen;

(j) 
committing Union funding and mobilise the
private sector and other public sector resources needed to implement fuel cells
and hydrogen research and innovation activities;

(k) 
fostering and facilitating the involvement of
industry in additional activities implemented outside indirect actions;

(l) 
information, communication, exploitation and
dissemination activities by applying mutatis mutandis the provisions of
Article 22 of Regulation (EU) No .../2013 [the Horizon 2020 Framework Programme];

(m) 
any other task needed to achieve the objectives set
out in Article 2 of this Regulation.

2 – Members

The Members of the FCH 2 Joint Undertaking
shall be the following:

(a) 
the Union, represented by the Commission,

(b) 
upon acceptance of these Statutes by means of a
letter of endorsement, the New Energy World Industry Grouping AISBL, a
non-profit organisation established under Belgian Law (registration number: 890025478,
with its permanent office in Brussels, Belgium) (hereinafter referred to as the
‘Industry Grouping’), and

(c) 
upon acceptance of these Statutes by means of a
letter of endorsement, the New European Research Grouping on Fuel Cells and
Hydrogen AISBL, a non-profit organisation established under Belgian Law
(registration number: 0897.679.372, with its permanent office in Brussels,
Belgium) (hereinafter referred to as the ‘Research Grouping’).

3 – Changes to
membership

1.           Any Member may terminate
its membership to the FCH 2 Joint Undertaking. The termination shall become
effective and irrevocable six months after notification to the other Members.
As of then, the former Member shall be discharged from any obligations other
than those approved or incurred by the FCH 2 Joint Undertaking prior to terminating
the membership.

2.           Membership of the FCH 2
Joint Undertaking may not be transferred to a third party without prior agreement
of the Governing Board.

3.           The FCH 2 Joint
Undertaking shall publish on its website immediately upon any change to
membership pursuant to this clause an updated list of Members of the FCH 2
Joint Undertaking together with the date when such change takes effect.

4 – Organisation
of the FCH 2 Joint Undertaking

1.           The bodies of the FCH 2
Joint Undertaking shall be:

(a) 
the Governing Board;

(b) 
the Executive Director;

(c) 
the Scientific Committee;

(d) 
the States Representatives Group;

(e) 
the Stakeholder Forum.

2.           The Scientific Committee,
the States Representatives Group and the Stakeholder Forum shall be advisory
bodies to the FCH 2 Joint Undertaking.

5 – Composition
of the Governing Board

The Governing Board shall be composed of
the following:

(a) 
three representatives of the Commission;

(b) 
six representatives of the Industry Grouping, at
least one of which shall represent SMEs;

(c) 
one representative of the Research Grouping.

6 –
Functioning of the Governing Board

1.           The Commission shall hold
50 % of the voting rights. The vote of the Commission shall be indivisible. The
Industry Grouping shall hold 43 % of the voting rights and the Research
Grouping 7 % of the voting rights. The Members shall use their best efforts to
achieve consensus. Failing consensus, the Governing Board shall take its
decisions by a majority of at least 75 % of all votes, including the votes of
those who are not in attendance.

2.           The Governing Board shall
elect its chairperson for a period of two years.

3.           The Governing Board shall
hold its ordinary meetings at least twice a year. It may hold extraordinary
meetings at the request of the Commission or of a majority of the
representatives of the Industry Grouping and the Research Grouping or at the
request of the chairperson. The meetings of the Governing Board shall be
convened by its chairperson and shall usually take place at the seat of the FCH
2 Joint Undertaking.

The Executive Director shall have the right to
take part in the deliberations, but shall have no voting rights.

The chairperson of the States Representatives
Group shall have the right to attend meetings of the Governing Board as an
observer.

The Governing Board may invite, on a case by
case basis, other persons to attend its meetings as observers, in particular
representatives of regional authorities of the Union.

The representatives of the Members shall not be
personally liable for actions they have taken in their capacity as
representatives on the Governing Board.

The Governing Board shall adopt its own rules
of procedure.

7 – Tasks of
the Governing Board

1.           The Governing Board shall
have overall responsibility for the strategic orientation and the operations of
the FCH 2 Joint Undertaking and shall supervise the implementation of its
activities.

2.           The Governing Board shall
in particular carry out the following tasks:

(a) 
decide on the termination of the membership in
the FCH 2 Joint Undertaking of any Member that does not fulfil its obligations;

(b) 
adopt the Financial rules of the FCH 2 Joint
Undertaking in accordance with Article 5 of this Regulation;

(c) 
adopt the annual budget of the FCH 2 Joint
Undertaking, including the staff establishment plan indicating the number of
temporary posts by function group and by grade as well as the number of
contract staff and seconded national experts expressed in full-time equivalents;

(d) 
exercise the appointing authority powers with
respect of the staff, in accordance with Article 6(2) of this Regulation;

(e) 
appoint, dismiss, extend the term of office of, provide
guidance to and monitor the performance of the Executive Director;

(f) 
approve the organisational structure of the Programme
Office referred to in clause 9(5) upon recommendation by the Executive
Director;

(g) 
adopt the annual work plan and the corresponding
expenditure estimates, as proposed by the Executive Director, after having
consulted the Scientific Committee and the States Representatives Group;

(h) 
approve the annual additional activities plan
referred to in Article 4(2)(b) of this Regulation on the basis of a proposal
from the Members other than the Union and after having consulted, where
appropriate, an ad hoc advisory group;

(i) 
approve the annual accounts;

(j) 
approve the annual activity report, including
the corresponding expenditure;

(k) 
arrange, as appropriate, for the establishment
of an internal audit capability of the FCH 2 Joint Undertaking;

(l) 
approve the calls as well as, where appropriate,
the related rules for submission, evaluation, selection, award and review
procedures;

(m) 
approve the list of actions selected for
funding;

(n) 
establish the FCH 2 Joint Undertaking's
communications policy upon recommendation by the Executive Director;

(o) 
where appropriate, establish implementing rules
in line with Article 6(3) of this Regulation;

(p) 
where appropriate, establish rules on the secondment
of national experts to the FCH 2 Joint Undertaking and on the use of trainees
in line with Article 7 of this Regulation;

(q) 
where appropriate, set up advisory groups in
addition to the bodies to the FCH 2 Joint Undertaking;

(r) 
where appropriate, submit to the Commission any
request to amend this Regulation proposed by any Member of the FCH 2 Joint
Undertaking;

(s) 
be responsible for any task that is not
specifically allocated to one of the bodies of the FCH 2 Joint Undertaking
which it may assign to one of those bodies.

8 – Appointment,
dismissal or extension of the term of office of the Executive Director

1.           The Executive Director
shall be appointed by the Governing Board, from a list of candidates proposed
by the Commission, following an open and transparent selection procedure. The
Commission shall associate the representation from the other Members of the FCH
2 Joint Undertaking in the selection procedure as appropriate.

In particular, an appropriate representation
from the other Members of the FCH 2 Joint Undertaking shall be ensured at the pre-selection stage of the selection
procedure. For that purpose, the other Members of the FCH 2 Joint Undertaking
shall appoint by common accord a representative as well as an observer on
behalf of the Governing Board.

2.           The Executive Director is
a member of staff and shall be engaged as a temporary agent of the FCH 2 Joint
Undertaking under point (a) of Article 2 of the Conditions of Employment of
Other Servants of the Union.

For the purpose of concluding the contract of the
Executive Director, the FCH 2 Joint Undertaking shall be represented by the chairperson
of the Governing Board.

3.           The term of office of the
Executive Director shall be three years. By the end of that period, the Commission
associating the other Members of the FCH 2 Joint Undertaking as appropriate shall
undertake an assessment of the performance of the Executive Director and the FCH
2 Joint Undertaking's future tasks and challenges.

4.           The Governing Board, acting
on a proposal from the Commission which takes into account the assessment
referred to in paragraph 3, may extend the term of office of the Executive
Director once, for no more than four years.

5.           An Executive Director
whose term of office has been extended may not participate in another selection
procedure for the same post at the end of the overall period.

6.           The Executive Director may
be dismissed only upon a decision of the Governing Board acting on a proposal
from the Commission associating the other Members of the FCH 2 Joint
Undertaking as appropriate.

9 – Tasks of
the Executive Director

1.           The Executive Director
shall be the chief executive responsible for the day-to-day management of the FCH
2 Joint Undertaking in accordance with the decisions of the Governing Board.

2.           The Executive Director
shall be the legal representative of the FCH 2 Joint Undertaking. He shall be
accountable to the Governing Board.

3.           The Executive Director
shall implement the budget of the FCH 2 Joint Undertaking.

4.           The Executive Director
shall in particular carry out the following tasks in an independent manner:

(a) 
prepare and submit for adoption to the Governing
Board the draft annual budget, including the corresponding staff establishment plan
indicating the number of temporary posts in each grade and function group and
the number of contract staff and seconded national experts expressed in
full-time equivalents;

(b) 
prepare and submit for adoption to the Governing
Board the annual work plan and the corresponding expenditure estimates;

(c) 
submit for approval to the Governing Board the
annual accounts;

(d) 
prepare and submit for approval to the Governing
Board the annual activity report, including the corresponding expenditure;

(e) 
submit to the Governing Board the report on
in-kind contributions in indirect actions as provided for in Clause 13(3)(b) of
the Statues contained in the Annex;

(f) 
submit for approval to the Governing Board the
list of proposals to be selected for funding;

(g) 
sign individual grant agreements or decisions;

(h) 
sign the procurement contracts;

(i) 
implement the FCH 2 Joint Undertaking's
communications policy;

(j) 
organise, direct and supervise the operations
and the staff of the FCH 2 Joint Undertaking within the constraints of the
delegation by the Governing Board as provided for in Article 6(2) of this
Regulation;

(k) 
establish and ensure the functioning of an effective
and efficient internal control system and report any significant change to it
to the Governing Board;

(l) 
ensure that risk assessment and risk management
are performed;

(m) 
take any other measures needed for assessing the
progress of the FCH 2 Joint Undertaking towards achieving its objectives;

(n) 
perform any other tasks entrusted or delegated to
the Executive Director by the Governing Board.

5.           The Executive Director
shall set up a Programme Office for the execution, under his/her
responsibility, of all support tasks arising from this Regulation. The
Programme Office shall be composed of the staff of the FCH 2 Joint Undertaking
and shall, in particular, carry out the following tasks:

(a) 
provide support in establishing and managing an
appropriate accounting system in accordance with the Financial rules of the FCH
2 Joint Undertaking;

(b) 
manage the calls as provided for in the annual
work plan, and the administration of the agreements or decisions, including
their coordination;

(c) 
provide to the Members and the other bodies of
the FCH 2 Joint Undertaking all relevant information and support necessary for
them to perform their duties as well as responding to their specific requests;

(d) 
act as the secretariat of the bodies of the FCH
2 Joint Undertaking and provide support to any advisory group set up by the
Governing Board.

10 –
Scientific Committee

1.           The Scientific Committee
shall consist of no more than nine members. It shall elect a chairperson from
amongst its members.

2.           The members shall reflect
a balanced representation of world-wide recognised experts from academia,
industry and regulatory bodies. Collectively, the Scientific Committee members
shall have the necessary scientific competencies and expertise covering the
technical domain needed to make science-based recommendations to the FCH 2
Joint Undertaking.

3.           The Governing Board shall
establish the specific criteria and selection process for the composition of
the Scientific Committee and shall appoint its members. The Governing Board
shall take into consideration the potential candidates proposed by the FCH 2 States
Representatives Group.

4.           The Scientific Committee
shall carry out the following tasks:

(a) 
advise on the scientific priorities to be
addressed in the annual work plans;

(b) 
advise on the scientific achievements described
in the annual activity report.

5.           The Scientific Committee
shall meet at least once a year. The meetings shall be convened by its
chairperson.

6.           The Scientific Committee
may, with the agreement of the chairperson, invite other persons to attend its
meetings.

7.           The Scientific Committee
shall adopt its own rules of procedure.

11 - States
Representatives Group

1.           The FCH 2 States
Representatives Group shall consist of one representative of each Member State and of each country associated to the Horizon 2020 Framework Programme. It
shall elect a chairperson among its members.

2.           The States Representatives
Group shall meet at least once a year. The meetings shall be convened by its
chairperson. The Executive Director and the chairperson of the Governing Board
or their representatives shall attend the meetings.

The chairperson of the States Representatives
Group may invite other persons to attend its meetings as observers, in
particular representatives of regional authorities of the Union.

3.           The States Representatives
Group shall in particular review information and provide opinions on the
following matters:

(a) 
programme progress in the FCH 2 Joint
Undertaking and achievement of its targets;

(b) 
updating of strategic orientation;

(c) 
links to the Horizon 2020 Framework Programme;

(d) 
annual work plans;

(e) 
involvement of SMEs.

4.           The States Representatives
Group shall also provide information to and act as an interface with the FCH 2
Joint Undertaking on the following matters:

(a) 
the status of relevant national or regional research
and innovation programmes and identification of potential areas of cooperation,
including deployment of FCH technologies;

(b) 
specific measures taken at national or regional level
with regard to dissemination events, dedicated technical workshops and
communication activities.

5.           The States Representatives
Group may issue, on its own initiative, recommendations to the FCH 2 Joint
Undertaking on technical, managerial and financial matters, in particular when
those matters affect national or regional interests.

The FCH 2 Joint Undertaking shall inform the
States Representatives Group of the follow up it has given to such
recommendations.

6.           The FCH 2 States
Representatives Group shall adopt its own rules of procedure.

12 -
Stakeholder Forum

1.           The Stakeholder Forum shall
be open to all public and private stakeholders, international interest groups
from Member States, associated countries as well as from other countries.

2.           The Stakeholder Forum
shall be informed of the activities of the FCH 2 Joint Undertaking and shall be
invited to provide comments.

3.           The meetings of the
Stakeholder Forum shall be convened by the Executive Director.

13 - Sources
of financing

1.           The FCH 2 Joint
Undertaking shall be jointly funded by the Union and the Members other than the
Union or their constituent entities through financial contributions paid in
instalments and contributions consisting of the costs incurred by them in implementing
indirect actions that are not reimbursed by the FCH 2 Joint Undertaking.

2.           The administrative costs of
the FCH 2 Joint Undertaking shall not exceed EUR 40 million and shall be covered
through financial contributions divided on an annual basis between the Union
and the Members other than the Union. The Union shall contribute with 50%, the Industry Grouping with 43% and the Research Grouping
with 7%. If part of the contribution for administrative
costs is not used, it may be made available to cover the operational costs of
the FCH 2 Joint Undertaking.

3.           The operational costs of
the FCH 2 Joint Undertaking shall be covered through:

(a) 
a financial contribution by the Union;

(b) 
in-kind contributions by the constituent entities
of the Members other than the Union participating in the indirect actions, consisting
of the costs incurred by them in implementing indirect actions less the contribution
of the FCH 2 Joint Undertaking and any other Union contribution to those costs.

4.           The resources of the FCH 2
Joint Undertaking entered to its budget shall be composed of the following
contributions:

(a) 
Members' financial contributions to the
administrative costs;

(b) 
Union financial contribution to the operational
costs;

(c) 
any revenue generated by the FCH 2 Joint
Undertaking;

(d) 
any other financial contributions, resources and
revenues.

Any interest yielded by the contributions paid
to the FCH 2 Joint Undertaking by its Members shall be considered to be its
revenue.

5.           All resources of the FCH 2
Joint Undertaking and its activities shall be devoted to the objectives set out
in Article 2 of this Regulation.

6.           The FCH 2 Joint
Undertaking shall own all assets generated by it or transferred to it for the
fulfilment of its objectives set out in Article 2 of this Regulation.

7.           Except when the FCH 2
Joint Undertaking is wound up pursuant to clause 21, any excess revenue over
expenditure shall not be paid to the Members of the FCH 2 Joint Undertaking.

14 – Financial
commitments

Financial commitments of the FCH 2 Joint
Undertaking shall not exceed the amount of financial resources available or
committed to its budget by its Members.

15 - Financial
year

The financial year shall run from 1 January
to 31 December.

16 -
Operational and financial planning

1.           The Executive Director
shall submit for adoption to the Governing Board a draft annual work plan,
which shall include a detailed plan of the research and innovation activities,
the administrative activities and the corresponding expenditure estimates for
the coming year. The draft work plan shall also include the estimated value of
the contributions to be made in accordance with clause 13(3)(b).

2.           The annual work plan for a
particular year shall be adopted by the end of the previous year. The annual
work plan shall be made publicly available.

3.           The Executive Director
shall prepare the draft annual budget for the following year and submit it to
the Governing Board for adoption.

4.           The annual budget for a
particular year shall be adopted by the Governing Board by the end of the
previous year.

5.           The annual budget shall be
adapted in order to take into account the amount of the Union contribution as
set out in the Union budget.

17 -
Operational and financial reporting

1.           The Executive Director
shall report annually to the Governing Board on the performance of his duties
in accordance with the financial rules of the FCH 2 Joint Undertaking.

By 15 February each year the Executive Director
shall submit to the Governing Board for approval an annual activity report on
the progress made by the FCH 2 Joint Undertaking in the previous calendar year,
in particular in relation to the annual work plan for that year. That report
shall include, inter alia, information on the following matters:

(a) 
research, innovation and other actions carried
out and the corresponding expenditure;

(b) 
the actions submitted, including a breakdown by
participant type, including SMEs, and by country;

(c) 
the actions selected for funding, including a
breakdown by participant type, including SMEs, and by country and indicating
the contribution of the FCH 2 Joint Undertaking to the individual participants
and actions.

2.           Once approved by the
Governing Board, the annual activity report shall be made publicly available.

3.           The FCH 2 Joint
Undertaking shall report annually to the Commission in accordance with Article
60(5) of Regulation (EU, Euratom) No 966/2012.

4.           The accounts of the FCH 2
Joint Undertaking shall be examined by an independent audit body as laid down in
Article 60(5) of Regulation (EU, Euratom) No 966/2012.

The accounts of the FCH 2 Joint Undertaking
shall not be subject to examination by the Court of Auditors.

18 - Internal
audit

The Commission's internal auditor shall
exercise the same powers over the FCH 2 Joint Undertaking as those exercised in
respect of the Commission.

19 - Liability
of Members and insurance

1.           The financial liability of
the Members for the debts of the FCH 2 Joint Undertaking shall be limited to
their contribution already made for the administrative costs.

2.           The FCH 2 Joint
Undertaking shall take out and maintain appropriate insurance.

20 - Conflict
of interest

1.           The FCH 2 Joint
Undertaking, its bodies and staff shall avoid any conflict of interest in the
implementation of their activities.

2.           The FCH 2 Joint
Undertaking Governing Board may adopt rules for the prevention and management
of conflicts of interest in respect of its Members, bodies and staff. In those
rules, provision shall be made to avoid a conflict of interest for the
representatives of the Members serving in the Governing Board.

21 - Winding
up

1.           The FCH 2 Joint
Undertaking shall be wound up at the end of the period defined in Article 1 of
this Regulation.

2.           The winding up procedure
shall be automatically triggered if the Commission or all Members other than
the Union withdraw from the FCH 2 Joint Undertaking.

3.           For the purpose of
conducting the proceedings to wind up the FCH 2 Joint Undertaking, the
Governing Board shall appoint one or more liquidators, who shall comply with
the decisions of the Governing Board.

4.           When the FCH 2 Joint
Undertaking is being wound up, its assets shall be used to cover its
liabilities and the expenditure relating to its winding up. Any surplus shall
be distributed among the Members at the time of the winding up in proportion to
their financial contribution to the FCH 2 Joint Undertaking. Any such surplus
distributed to the Union shall be returned to the Union budget.

5.           An ad hoc procedure shall
be set up to ensure the appropriate management of any agreement concluded or
decision adopted by the FCH 2 Joint Undertaking as well as any procurement
contract with duration longer than its duration.

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objectives

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
mode(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on Fuel Cells and Hydrogen Joint Undertaking's appropriations

3.2.3. Estimated impact
on Fuel Cells and Hydrogen Joint Undertaking's human resources

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
contributions

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Proposal for a Council Regulation on the Fuel Cells and Hydrogen 2
Joint Undertaking.

1.2.        Policy area(s) concerned
in the ABM/ABB structure[25]

Horizon 2020, the Framework Programme for Research and Innovation.

The Societal Challenges addressed are ‘Secure, clean and efficient
energy’ and ‘Smart, green and integrated transport’.

1.3.        Nature of the
proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The proposal/initiative
relates to a new action following a pilot project/preparatory action[26]

x The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objective(s)

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

The general objective of the proposed continuation of the Fuel Cells and Hydrogen (FCH) Joint Undertaking in Horizon 2020 is to contribute to implementing an optimal research and innovation programme at EU level and to develop a strong, sustainable and globally competitive fuel cells and hydrogen sector in the Union, in particular to: - reduce the production cost of fuel cell systems to be used in transport applications, while increasing their lifetime to levels competitive with conventional technologies. - increase the electrical efficiency and the durability of the different fuel cells used for power production, while reducing costs, to levels competitive with conventional technologies. - increase the energy efficiency of production of hydrogen from water electrolysis while reducing capital costs, so that the combination of the hydrogen and the fuel cell system is competitive with the alternatives available in the marketplace. - demonstrate on a large scale the feasibility of using hydrogen as a competitive energy storage medium for electricity produced from renewable energy sources.

1.4.2.     Expected result(s) and
impact

The potential of the FCH 2 JU to contribute to growth, jobs and competitiveness in the European Union is described in the point 2.2 of the Impact Assessment.

1.4.3.     Indicators of results and
impact

A set of Key Performance Indicators (KPIs) is proposed to monitor the FCH 2 JU during the period 2014 to 2020, in line with the specific objectives of the programme. Area || KPI description || Target || When?

Operational objective 1 || Private and public expenditures in R&D, innovation and early deployment activities in Europe (triggered by JU) || > €1,4 billion over 2014-2020 || By 2020

Operational objective 2 || SME participation in the JU programme || ≥25% || Every CfP

Operational objective 3 || FCH 2 JU demonstration projects hosted in Member States and Regions benefitting from EU Structural Funds || 7 projects || By 2020

Operational objective 4 || Time to grant (from call closing to grant signature) Time to pay || < 180 days < 90 days || Every CfP

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

In Horizon 2020, the FCH 2 JU shall contribute to achieving the EU's overarching objective of smart, sustainable and inclusive growth by:               - boosting the share of fuel cells and hydrogen technologies used in sustainable, low-carbon energy and transport systems;               - ensuring a world leading, competitive European fuel cells and hydrogen industry;               - securing inclusive growth for the European fuel cells and hydrogen industry, increasing and safeguarding jobs.

1.5.2.     Added value of EU
involvement

Intervention at EU level will reduce the differences between national programmes, their fragmentation and potential overlapping. Pooling and coordinating research and development efforts at EU level gives a better chance of success, given the trans-national nature of the infrastructure and technologies to be developed as well as the need for a sufficient mass of resources.               The intervention of the European Union will also contribute to rationalise research programmes and ensure inter-operability of the developed systems.

1.5.3.     Lessons learned from
similar experiences in the past

The first interim evaluation of the FCH JU, set up in 2008, was finalised in 2011 and concluded that the Joint Undertaking approach was generally successful in enhancing public-private activities related to technology development and demonstration, and provides stability to the R&D community.

1.5.4.     Compatibility and possible
synergy with other appropriate instruments

This issue is addressed in points 2.6, 3.2 and 5.9 of the Impact Assessment document attached to this proposal.

1.6.        Duration and financial
impact

x     Proposal/initiative of limited
duration

x     Proposal/initiative in effect from 01/01/2014 to 31/12/2024

x     Financial impact from 2014-2020 for commitment appropriations
and 2014 to 2024 for payment appropriations

 ̈      Proposal/initiative of unlimited
duration

– 
Implementation with a start-up period from YYYY
to YYYY,

– 
followed by full-scale operation.

1.7.        Management mode(s)
envisaged[27]

 ̈      Direct management by the Commission through:

 ̈      executive agencies

 ̈      Shared management with Member States:

x     Indirect management by entrusting budget implementation tasks
to:

 ̈      international organisations and their agencies (please
specify);

 ̈      the EIB and the European Investment Bank;

x     bodies referred to in 209 FR;

 ̈      public law bodies;

 ̈      bodies governed by private law with a public service mission
to the extent that they provide adequate financial guarantees;

 ̈      bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;

 ̈      persons entrusted with the implementation of specific actions
in the CFSP pursuant to Title V of the TEU and identified in the relevant basic
act.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

The FCH 2 Joint Undertaking will be monitored through intermediary contacts as provided in Clause 17 of the Statutes to the FCH 2 Joint Undertaking Regulation and through the interim and final evaluations as provided in Article 11 of the Regulation . The Governing Board will also supervise the activites of the FCH 2 Joint Undertaking.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

The Commission will ensure through the Authorising Officer by
Delegation that the rules applicable to the FCH 2 JU fully comply with the
requirements of Articles 60 and 61 of the Financial Regulation. Monitoring
arrangements, including membership of the Governing board, of the FCH 2 JU and
reporting arrangements will ensure that the Commission services can meet the
accountability requirements both to the College and to the Budgetary Authority.

The internal control framework for the FCH 2 JU is built on:

-the implementation of the Internal Control Standards offering at
least equivalent guarantees to those of the Commisson;

-procedures for selecting the best projects through independent
evaluation, and for translating them into legal instruments;

- project and contract management throughout the lifetime of every
project;

-ex-ante checks on 100% of claims, including receipt of audit
certificates and ex-ante certification of cost methodologies;

- ex post audits on a sample of claims as part of the Horizon 2020
ex-post audits;

- and scientific evaluation of project results.

Various measures have been established to mitigate the inherent risk
of conflict of interest within the FCH 2 JU, especially equal votes for the
Commission and for industrial partners in the Governing Board, selection of the
Executive Director by the Governing Board based on a proposal by the Commission,
independence of staff, evaluations by independent experts based on published
selection criteria together with appeal mechanisms and full declarations of any
interests. The establishment of ethical and organisational values will be one
of the key roles of the FCH 2 JU, and will be monitored by the Commission.

2.2.2.     Control method(s) envisaged

The Commission's internal auditor shall exercise the same powers
over the Joint Undertaking as those exercised in respect of the Commission.
Moreover, the Governing Board may arrange, as appropriate, for the
establishment of an internal audit capability of the Joint UndertakingThe
Executive Director of the FCH 2 JU, as Authorising Officer, will be required to
introduce a cost-effective system of internal control and management. He/she
will be required to report to the Commission on the internal control framework
adopted.

The Commission will monitor the risk of non-compliance through the
reporting system that it will develop, as well as by following the results of
ex post audits on the recipients of EU funds from the FCH 2 JU, as part of ex
post audits covering the whole of the Horizon 2020.

The European Council of February 4th 2011 concluded that ‘it is
crucial that EU instruments aimed at fostering R&D&I be simplified [...],
in particular by agreeing between the relevant institutions a new balance
between trust and control and between risk taking and risk avoidance’.
Moreover, the European Parliament, in its Resolution of 11 November 2010
(P7_TA(2010)0401) on simplifying the implementation of the Research Framework
Programmes explicitly supports a higher risk of errors for research funding and
‘expresses its concern that the current system and the practice of FP7
management are excessively control-oriented’.

There is therefore an acceptance among stakeholders and Institutions
that the whole range of objectives and interests, especially the success of the
Research policy, international competitiveness and scientific excellence,
should be considered, along with the error rate. At the same time, there is a
clear need to manage the budget in an efficient and effective manner, and to
prevent fraud and waste.

As stated above, the Commission will monitor the risk of
non-compliance through the reporting system that it will establish , as well as
by following the results of ex post audits on the recipients of EU funds from
the FCH 2 JU, as part of the ex post audits covering the whole of the Horizon
2020.

2.2.3.     Expected level of risk of
non-compliance

As the Commission reported in the Legislative Financial Statement
for Horizon 2020, it remains the ultimate objective to achieve a residual error
rate of less than 2% of total expenditure over the lifetime of the programme,
and to that end, it has introduced a number of simplification measures.
However, the other objectives set out above as well as the costs of controls
need to be considered.

As the rules of participation in the FCH JU are basically the same
as those that the Commission will use, and with a population of beneficiaries
with a similar risk profile to those of the Commission, it can be expected that
the level of error will be similar to that established by the Commission for
Horizon 2020.

See the Legislative Financial Statement for Horizon 2020 for full
details of the error rate expected with respect to participants.

2.3.        Measures to prevent fraud
and irregularities

The Commission will ensure that appropriate mesures to fight against
fraud, corruption and any other illegal activity at all stages of the
management process are applied by the FCH 2 JU. The proposal for Horizon 2020
has been subject to fraud proofing and an assessment of the impact. Overall the
measures proposed should have a positive impact on the fight against fraud,
especially the greater emphasis on risk based audit and reinforced scientific
evaluation and control.

The current FCH JU already cooperate with the Commission services in
matters relating to fraud and irregularity, the Commission will ensure that
this will continue and be strengthened.

The Court of Auditors shall have the power of audit, on the basis of
documents and on-the-spot, over all grant beneficiaries, contractors and
subcontractors who have received Union funds under the Programme.

The European Anti-fraud Office (OLAF) may carry out on-the-spot
checks and inspections on economic operators concerned directly by such funding
in accordance with the procedures laid down in Regulation (Euratom, EC) No 2185/96
with a view to establishing whether there has been fraud, corruption or any
other illegal activity affecting the financial interests of the Union in
connection with a grant agreement or grant decision or a contract concerning
Union funding.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number 1A [Heading Competitiveness for growth and jobs] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

[1A] || 08.020733 Societal challenges – FCH 2 JU || Diff || YES || YES || YES || YES

*the goal is to use one single budget line.
The contribution to this budget line is expected to come from:

|| Commitment Appropriation (EUR million)

Budget line || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total

06.030301 Achieving a resource-efficient, environmentally-friendly, safe and seamless European transport system || 10,050 || 11,741 || 11,742 || 10,634 || 10,479 || 9,980 || 10,374 || 75,000

08.020303 Making the transition to a reliable, sustainable and competitive energy system || 36,177 || 42,267 || 42,271 || 38,283 || 37,726 || 35,929 || 37,347 || 270,000

08.020304 Achieving a European transport system that is resource-efficient, environmentally friendly, safe and seamless || 23,448 || 27,395 || 27,398 || 24,813 || 24,452 || 23,287 || 24,207 || 175,000

32.040301 Making the transition to a reliable, sustainable and competitive energy system || 24,118 || 28,178 || 28,181 || 25,522 || 25,151 || 23,952 || 24,898 || 180,000

|| 93,793 || 109,581 || 109,592 || 99,252 || 97,808 || 93,148 || 96,826 || 700,000

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to three decimal places)

Heading of multiannual financial Framework: || 1A || Competitiveness for growth and jobs

Fuel Cells and Hydrogen Joint Undertaking || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021-2024 || TOTAL

Title 1 || Commitments || (1) || 0,324 || 0,330 || 0,337 || 0,344 || 1,454 || 1,483 || 7,285 || || 11,557

Payments || (2) || 0,324 || 0,330 || 0,337 || 0,344 || 1,454 || 1,483 || 1,512 || 5,772 || 11,557

Title 2 || Commitments || (1a) || 0,115 || 0,257 || 0,261 || 0,454 || 1,640 || 1,711 || 4,005 || || 8,443

Payments || (2a) || 0,115 || 0,257 || 0,261 || 0,454 || 1,640 || 1,711 || 1,746 || 2,260 || 8,443

Title 3 || Commitments || (3a) || 93,354 || 108,994 || 108,994 || 98,454 || 94,714 || 89,954 || 85,536 || 0 || 680,000

|| Payments || (3b) || || 56,012 || 65,396 || 84,067 || 80,871 || 97,298 || 95,462 || 200,893 || 680,000

TOTAL appropriations for FCH JU || Commitments || =1+1a +3a || 93,793 || 109,581 || 109,592 || 99,252 || 97,808 || 93,148 || 96,826 || 0 || 700,000

Payments || =2+2a +3b || 0,439 || 56,599 || 65,994 || 84,865 || 83,965 || 100,492 || 98,720 || 208,925 || 700,000

The administrative
costs shall be shared between the Union and the other members of the FCH 2
Joint Undertaking. The Union will provide 50% of the funding. The Industry
Grouping and the Research Grouping shall provide the other 50%, so 43% and 7%
respectively. The Union’s total contribution to the FCH 2 Joint Undertaking
administrative costs shall not exceed EUR 20 million. If part of the Union’s contribution is not used, it may be made available for the FCH 2 JU’s activities.

The FCH 2 JU’s operational costs shall be covered by
financial contribution of the Union, and through in-kind contributions from the
constituent entities of the Members other than the Union, participating in the
FCH 2 JU’s activities.

Administrative costs were estimated according to current
expenditure. Payment appropriations were estimated taking into consideration
pre-financings to be paid and interim payments related to the appropriations
committed.

Heading of multiannual financial framework: || 1A || Competitiveness for growth and jobs ‘Administrative expenditure’

EUR million (to three decimal places)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021-2024* || Total

DG: RTD ||

Ÿ Human resources || 0,393 || 0,401 || 0,409 || 0,417 || 0,425 || 0,434 || 0,443 || p.m. || 2,922

Ÿ Other administrative expenditure || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

TOTAL || || 0,393 || 0,401 || 0,409 || 0,417 || 0,425 || 0,434 || 0,443 || p.m. || 2,922

TOTAL appropriations under HEADING 1A of the multiannual financial framework || || 0,393 || 0,401 || 0,409 || 0,417 || 0,425 || 0,434 || 0,443 || p.m. || 2,922

|| ||

|| || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2020-2024 || Total

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 94,186 || 109,982 || 110,001 || 99,669 || 98,233 || 93,582 || 97,269 || 0 || 702,922

Payments || 0,832 || 57,000 || 66,403 || 85,282 || 84,391 || 100,926 || 99,163 || 210,783 || 702,922

*Staff number after 2020 has to be decided
in a later stage

3.2.2.     Estimated impact on Fuel
Cells and Hydrogen Joint Undertaking's appropriations

 ̈      The
proposal/initiative does not require the use of operational appropriations

x     The
proposal/initiative requires the use of operational appropriations, as
described below:

Commitment appropriations in EUR million
(to three decimal places)

Indicate objectives and outputs ò || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

|| OUTPUTS

|| Type[28] || Average cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Total number || Total cost

SPECIFIC OBJECTIVE NO 1 Reduce the production cost of fuel cell systems to be used in transport applications by taking advantage of scientific and technological advances and the scale effects that accompanies series production, while increasing their lifetime in order to bring total cost of ownership and lifetime to levels competitive with conventional technologies

- Output || Number of Grants signed || 3,589 || 10 || 36,500 || 12 || 40,300 || 12 || 40,300 || 10 || 38,000 || 10 || 36,900 || 10 || 35,500 || 9 || 34,500 || 73 || 262,000

Subtotal for specific objective N°1 || 10 || 36,500 || 12 || 40,300 || 12 || 40,300 || 10 || 38,000 || 10 || 36,900 || 10 || 35,500 || 9 || 34,500 || 73 || 262,000

SPECIFIC OBJECTIVE No 2 Increase the electrical efficiency and the durability of the different fuel cells used for power, while reducing current cost, to levels that make them competitive with incumbent technologies

- Output || Number of grants || 3,755 || 5 || 18,254 || 6 || 22,600 || 6 || 22,600 || 5 || 20,500 || 5 || 18,214 || 5 || 17,000 || 4 || 16,000 || 36 || 135,168

Subtotal for specific objective No 2 || 5 || 18,254 || 6 || 22,600 || 6 || 22,600 || 5 || 20,500 || 5 || 18,214 || 5 || 17,000 || 4 || 16,000 || 36 || 135,168

SPECIFIC OBJECTIVE No 3 Increase the energy efficiency of distributed production of hydrogen from water electrolysis while reducing the system capital expenditure so that the combination of the hydrogen cost at the dispenser and that of the fuel cell system it is used in, is competitive with the alternatives available in the marketplace)

- Output || Number of Grants || 3,988 || 5 || 19,000 || 5 || 22,000 || 5 || 22,000 || 5 || 19,900 || 5 || 20,000 || 5 || 18,854 || 5 || 17,836 || 35 || 139,590

Subtotal for specific objective No 3 || 5 || 19,000 || 5 || 22,0000 || 5 || 22,000 || 5 || 19,900 || 5 || 20,000 || 5 || 18,854 || 5 || 17,836 || 35 || 139,590

SPECIFIC OBJECTIVE No 4 Demonstrate on a large scale the feasibility of using hydrogen as a competitive energy storage medium for integrating of electricity produced from renewable energy sources

- Output || Number of Grants || 3,871 || 5 || 19,600 || 6 || 24,094 || 6 || 24,094 || 6 || 20,054 || 5 || 19,600 || 5 || 18,600 || 4 || 17,200 || 37 || 143,242

Subtotal for specific objective No 4 || 5 || 19,600 || 6 || 24,094 || 6 || 24,094 || 6 || 20,054 || 5 || 19,600 || 5 || 18,600 || 4 || 17,200 || 37 || 143,242

TOTAL COST || 20 || 93,354 || 29 || 108,994 || 29 || 108,994 || 29 || 98,454 || 25 || 94,714 || 25 || 89,954 || 22 || 85,536 || 181 || 680,000

3.2.3.     Estimated impact on human
resources

3.2.3.1.  Summary

x     The proposal/initiative does not require the use of
appropriations of an administrative nature

 ̈      The proposal/initiative requires the use of appropriations of
an administrative nature, as described below:

Staffing numbers
(FTE)[29]

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 || TOTAL

Officials (AD Grades) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Officials (AST Grades) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Contract agents || 2 || 2 || 2 || 2 || 2 || 2 || 2 || 2 || 2 || 2 || 2 || 22

Temporary agents AD || 15 || 15 || 15 || 15 || 15 || 15 || 15 || 15 || 14 || 13 || 12 || 159

Temporary agents AST || 9 || 9 || 9 || 9 || 9 || 9 || 9 || 9 || 9 || 8 || 7 || 96

TOTAL || 26 || 26 || 26 || 26 || 26 || 26 || 26 || 26 || 25 || 23 || 21 || 277

EUR million (to
three decimal places)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 || TOTAL

Officials (AD Grades) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Officials (AST Grades) || || || || || || || || || || || || 0

Contract agents || 0,094 || 0,096 || 0,098 || 0,100 || 0,102 || 0,104 || 0,106 || 0,108 || 0,110 || 0,112 || 0,115 || 1,144

Temporary agents (AD Grades) || 1,620 || 1,652 || 1,685 || 1,719 || 1,754 || 1,789 || 1,824 || 1,861 || 1,772 || 1,678 || 1,580 || 18,934

Temporary agents AST || 0,972 || 0,991 || 1,011 || 1,031 || 1,052 || 1,073 || 1,095 || 1,117 || 1,139 || 1,033 || 0,922 || 11,436

TOTAL || 2,686 || 2,740 || 2,795 || 2,850 || 2,907 || 2,966 || 3,025 || 3,085 || 3,021 || 2,823 || 2,616 || 31,513

3.2.3.2.  Estimated requirements of
human resources for the parent DG

 ̈      The proposal/initiative does not require the use of human
resources.

x     The proposal/initiative requires the use of human resources, as
described below:

Estimate to be expressed in number (FTE)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020*

|| || || || || || ||

Establishment plan posts (officials and temporary staff)

XX 01 01 01 (Headquarters and Commission’s Representation Offices) || || || || || || ||

XX 01 01 02 (Delegations) || || || || || || ||

08. 01 05 01 (Indirect research) || 3 || 3 || 3 || 3 || 3 || 3 || 3

10 01 05 01 (Direct research) || || || || || || ||

XX 01 02 01 (CA, SNE, INT from the ‘global envelope’) || || || || || || ||

XX 01 02 02 (CA, LA, SNE, INT and JED in the delegations) || || || || || || ||

XX 01 04 yy[30] || - at Headquarters[31] || || || || || || || ||

|| - in delegations || || || || || || ||

XX 01 05 02 (CA, SNE, INT - Indirect research) || || || || || || ||

10 01 05 02 (CA, SNE, INT- Direct research) || || || || || || ||

Other budget lines (specify) || || || || || || ||

TOTAL || 3 || 3 || 3 || 3 || 3 || 3 || 3

- This table does
not include the staff numbers in the Commission after 2020. This will be
decided at later stage

08 is the policy area or budget title
concerned.

The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG. If
necessary, an additional allocation may be granted to the managing DG under the
annual allocation procedure, depending on budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff || Interface with Fuel Cells and Hydrogen 2 Joint Undertaking

External staff ||

Description of the
calculation of cost for FTE equivalent should be included in the Annex, section
3.

3.2.3.3.  a. Estimated requirements of
human resources for the Fuel Cells and Hydrogen 2 Joint Undertaking's [32]

 ̈      The proposal/initiative does not require the use of human
resources.

x     The proposal/initiative requires the use of human resources, as
described below:

b.           Estimated requirements of human
resources to be financed from appropriations under 2014-2020 Multiannual
Financial Framework

Estimate to be expressed in number (FTE)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || 2024

Ÿ Establishment plan posts (officials and temporary staff)

Fuel Cells and Hydrogen 2 Joint Undertaking || || || || || || || || || || ||

Temporary (AD grades) || 4 || 4 || 4 || 4 || 15 || 15 || 15 || 15 || 14 || 13 || 12

Temporary (AST grades) || 2 || 2 || 2 || 2 || 9 || 9 || 9 || 9 || 9 || 8 || 7

Ÿ External staff (in Full Time Equivalent: FTE)[33]

(PPP body) || || || || || || || || || || ||

TA || || || || || || || || || || ||

CA || 0 || 0 || 0 || 0 || 2 || 2 || 2 || 2 || 2 || 2 || 2

SNE || || || || || || || || || || ||

INT || || || || || || || || || || ||

TOTAL || 6 || 6 || 6 || 6 || 26 || 26 || 26 || 26 || 25 || 23 || 21

- Equivalent to
the average of staff per year

Description of
tasks to be carried out:

Officials and temporary staff || Contribution to the tasks and activities of the Fuel Cells and Hydrogen Joint Undertaking

External staff || Contribution to the tasks and activities of the Fuel Cells and Hydrogen Joint Undertaking

c.            Human resources financed from
appropriations under 2007-2013 Multiannual Financial Framework[34]

Estimate to be expressed in numbers (FTE)

|| 2014 || 2015 || 2016 || 2017 || Total

ŸEstablishment plan posts (officials and temporary staff)

Fuel Cells and Hydrogen Joint Undertaking || || || || ||

Temporary (AD grades)* || 11 || 11 || 11 || 11 || 44

Temporary (AST grades)* || 7 || 7 || 7 || 7 || 28

External staff (in Full Time Equivalent: FTE)[35]

Fuel Cells and Hydrogen Joint Undertaking || || || || ||

TA || || || || ||

CA || 2 || 2 || 2 || 2 || 8

SNE || || || || ||

INT || || || || ||

TOTAL || 20 || 20 || 20 || 20 || 80

d.           Contribution
to the running costs for the phasing out of the PPP body under the Multiannual
Financial Framework 2007-2013

EUR million (to 3 decimal places)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Total[36]

Contribution in cash from the EU || 1,345 || 1,372 || 1,399 || 1,427 || 5,543

Contribution in cash from third parties || 1,883 || 1,920 || 1,959 || 1,999 || 7,761

TOTAL || 3,228 || 3,292 || 3,358 || 3,426 || 13,304

3.2.4.     Compatibility with the
current multiannual financial framework

x     Proposal/initiative is compatible the current multiannual
financial framework.

 ̈      Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

 ̈      Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[37].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.     Third-party contributions

– 
The proposal/initiative does not provide for
co-financing by third parties.

– 
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to three decimal
places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020-2024 || Total

Industry Grouping and Research Grouping – cash contribution to the administrative costs || 0,439 || 0,587 || 0,598 || 0,798 || 3,094 || 3,194 || 11,290 || 20

TOTAL appropriations co-financed || 0,439 || 0,587 || 0,598 || 0,798 || 3,094 || 3,194 || 11,290 || 20

3.3.        Estimated impact on
revenue

x     Proposal/initiative has no financial impact on revenue.

 ̈      Proposal/initiative has the following financial impact:

 ̈      on own resources

 ̈      on miscellaneous revenue

[1]               COM(2013) [...]

[2]               COM(2010) 639 final of 10.11.2010

[3]               COM (2013) 17 final of 24.01.2013

[4]               http://ec.europa.eu/research/consultations/fch_h2020/fch-f2020-consultation-results.pdf

[5]               in current prices

[6]               OJ ... [EP opinion]

[7]               OJ ... [ESC opinion]

[8]               OJ L 412, 30.12.2006, p.1

[9]               OJ L 400, 30.12.2006, p.86

[10]             COM(2010) 2020 final.

[11]             OJ ... [H2020 FP]

[12]             OJ ... [H2020 SP].

[13]             OJ L153/1, 12.6.2008, p. 1-20, as amended by Council
Regulation 1183/2011 of 14.11.2011, OJ L302, 19.11.2011, p. 3-4.

[14]             Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions ‘Partnering in Research and Innovation’, COM(2011) 572
final, 21.09.2011

[15]             ‘Trends in investments, jobs and turnover in the Fuel
cells and Hydrogen sector’ – results of stakeholders' consultation: http://www.fch-ju.eu/page/publications

[16]             OJ L 298, 26.10.2012, p. 84.

[17]             OJ ... [H2020 RfP]

[18]             OJ L 362, 31.12.2012, p.1

[19]             OJ L 298, 26.10.2012, p. 1.

[20]             OJ 56, 4.3.1968, p. 1

[21]             OJ L 136, 31.05.1999, p.1

[22]             OJ L 292, 15.11.1996, p.2-5

[23]             OJ L 136, 31.5.1999, p. 15

[24]             OJ L 145, 31.5.2001, p. 43

[25]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[26]             As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.

[27]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site:
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[28]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[29]             In the case of PPP bodies under Article 209 FR, this
table is included for information purposes.

[30]             Sub‑ceiling for external staff covered by
operational appropriations (former 'BA' lines).

[31]             Mainly for the Structural Funds, the European
Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund
(EFF).

[32]             In the case of PPP bodies under Article 209 FR, this
section is included for information purposes.

[33]             CA = Contract Agent; LA = Local Agent; SNE = Seconded
National Expert; INT = agency staff (‘Intérimaire’).

[34]             In the case of PPP bodies under Article 209 FR, this
table is included for information purposes.

[35]             CA = Contract Agent; LA = Local Agent; SNE = Seconded
National Expert; INT = agency staff (‘Intérimaire’).

[36]             The total EU cash contribution
should equal the amount front-loaded in the 2013 budget for the completion of
the body’s 2007-2013 activities.

[37]             See points 19 and 24 of the Interinstitutional
Agreement.