EUROPEAN COMMISSION Brussels, 31.5.2017 COM(2017) 279 final 2017/0111(COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the monitoring and reporting of CO2 emissions from and fuel consumption of new heavy-duty vehicles (Text with EEA relevance) {SWD(2017) 188 final}

{SWD(2017) 189 final}



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL •Reasons for and objectives of the proposal This Commission’s primary political objectives are to create jobs, growth and investment, and in this context to make the transition to clean energy for all Europeans. This is underpinned by an investment plan aimed at reindustrialising Europe based on new business models and cutting-edge technologies. The medium- to long-term aim is to achieve, a circular low carbon economy. In the context of transport, particularly with respect to lorries, buses and coaches, i.e. heavy-duty vehicles (HDVs), the Commission’s vision is to ensure that European citizens and business have access to fair, sustainable and competitive mobility. CO2 emissions and fuel consumption from new HDVs placed on the EU market have so far neither been certified, nor monitored and reported. This knowledge gap gives rise to the following three challenges with respect to HDVs: (1)Missed opportunities to design policies to reduce the fuel bill for transport operators: Freight transport operators can experience fuel costs greater than a quarter of their operational costs, and rank fuel efficiency as their top purchase criterion. While the fuel efficiency of HDVs has improved over past decades, many of the more than half a million transport companies, which are to a large extent SMEs, do not yet have access to standardised information to evaluate fuel efficiency technologies, compare lorries in order to make the best informed purchasing decisions and reduce their fuel costs. Over time, missed fuel savings have cumulatively increased the EU’s dependency on fossil fuel imports and thus represent a missed opportunity to reduce fuel imports. (2)Increasing competition for vehicle manufacturers: In 2015, according to industry data, lorry exports generated a trade balance surplus of EUR 5.1 billion. The EU HDV manufacturing sector is part of an automotive industry which generates 12.1 million direct and indirect jobs in Europe (5.6 % of total EU employment). EU HDV manufacturers face increasing global competitive pressures. Significant markets such as the United States, Canada, Japan and China have in recent years implemented certification and fuel efficiency measures in the form of fuel consumption and/or emission standards, in order to stimulate innovation and rapidly improve vehicle efficiency. The city buses market faces increasing competition in the field of electric vehicles, in particular from Chinese manufacturers. The sector will need to keep up with the technological improvements in these markets to preserve its current market position. (3)A barrier to setting policies to reduce greenhouse gas (GHG) emissions from the heavy duty-vehicle sector: The EU HDV sector is a significant source of GHG emissions. In 2014, GHG emissions from HDVs represented 5 % of total EU emissions, a fifth of all transport emissions and about a quarter of road transport emissions. From 1990 to 2014, overall GHG transport emissions increased by 20 % and HDV emissions by 14 %. Without further action, HDV carbon dioxide (CO2) emissions are set to increase by up to 10 % between 2010 and 2030. At the same time, the EU has set ambitious targets for GHG reduction by 2030, to which the transport sector must contribute. The EU has an overall domestic emissions reduction target for 2030 of at least 40 % below 1990 levels. This has been split, in a cost-effective manner, into reductions by 2030 compared to 2005 emission levels of 43 % for the emissions from the EU Emission Trading System (ETS) sectors and of 30 % for non-ETS sectors, to which transport belongs. Furthermore, Member States’ transport emissions range from 21 % to 69 % of total national emissions in the non-ETS sectors covered by the Effort Sharing Regulation. While no sector-specific targets have been set for 2030, transport will need to make its contribution to achieving the non-ETS emission reduction target under the Effort Sharing Regulation, together with buildings, agriculture, and waste. This is why the Commission has taken action to address this knowledge gap. First, the Commission developed simulation software — the Vehicle Energy Consumption calculation Tool (VECTO) — in order to calculate the fuel consumption and CO2 emissions of new HDVs in a comparable and cost-effective manner. Second, the Commission proposed a new regulation on the determination of CO2 emissions and fuel consumption for new heavy-duty vehicles (so-called certification regulation) under existing type approval legislation. In application of the Commission Regulation on certification, a simulation of CO2 emissions and fuel consumption using VECTO will have to be carried out for each new HDV falling under its scope and placed on the EU market. Vehicle manufacturers themselves will perform the simulation on the basis of the certified input data of the vehicle components and of a certified process of sourcing, managing and applying such input data. Certification will partly address the identified knowledge gap. Information on the performance of a specific vehicle will be made available only to the individual purchaser of this vehicle and to the national authorities where the vehicle is registered. Third, the Commission is now proposing to monitor and report CO2 emissions from new HDVs subject to the certification procedure, in order to close the knowledge gap and create full market transparency. Through this third step, all relevant data calculated by manufacturers in line with the certification methodology would be monitored, reported and published at EU level. In this way the data would be made available to all stakeholders. This would give transport operators access to information on the performance of lorries of different makes with similar characteristics, allowing them to make better informed purchasing decisions. Vehicle manufacturers would be able to compare their vehicles’ performances with those of other makes, providing increased incentives for innovation. Public authorities would have access to comprehensive data for designing and implementing policies to promote more fuel-efficient lorries, for instance through taxation and road user charging. This would otherwise not be possible as Member States would only have access to VECTO data from vehicles registered in their territory. Finally, it would enable analysis of the data, e.g. assess the penetration level of certain technologies. This is also a necessary step for implementing and enforcing future CO2 emission standards for HDVs. A monitoring and reporting system is particularly necessary for assessing the compliance of such future standards, as is the case for cars and vans. •Consistency with existing policy provisions in the policy area

This proposal implements the 2014 Communication on a Strategy for reducing Heavy-Duty Vehicles’ fuel consumption and CO2 emissions. The HDV Strategy announced an implementing measure setting out the procedure for the certification of CO2 emissions from new HDVs placed on the EU market, calculated by the VECTO simulation tool, and a legislative proposal on monitoring and reporting these emissions. This proposal also implements the 2016 European Strategy for low-emission mobility, whose goals include reducing greenhouse gas emissions in road transport by at least 60 % in 2050 compared to 1990 levels and drastically reducing the emission of air pollutants. The Strategy also states that the Commission will speed up the analytical work on design options for CO2 emission standards with a view to preparing a legislative proposal during this Commission’s mandate. Finally, this proposal will also facilitate the development of a methodology for differentiating infrastructure use charges for new HDVs in line with CO2 emissions, supporting the implementation of the review of the ‘Eurovignette’ Directive. •Consistency with other Union policies This proposal is consistent with the EU commitment under the 2030 Climate and Energy Framework to reduce domestic emissions by at least 40 % by 2030 compared to 1990 levels. As part of the implementation of this commitment, in July 2016 the Commission proposed the Regulation on binding annual greenhouse gas emission reductions by Member States for the period 2021 to 2030 (the Effort Sharing Regulation) for the sectors not included in the Emission Trading Scheme (i.e. transport, buildings, agriculture and waste). This proposal is also consistent with the 2016 Commission proposal to revise the Energy Efficiency Directive, setting a binding headline target at EU level of 30 % for improving energy efficiency by 2030 compared to business as usual. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY •Legal basis Articles 191 to 193 of the Treaty on the Functioning of the European Union lay down and specify EU competencies in the area of climate change. The legal basis for this proposal is Article 192 TFEU. •Subsidiarity EU action is justified in view of the cross-border impact of climate change and the need to safeguard single markets in fuel, vehicle and transport services. Moreover, new HDVs registered in a given Member State are often produced by a manufacturer in another Member State. Monitoring at national level instead of EU level would thus require extensive cooperation among Member States; homogeneous monitoring data would not be guaranteed due to differences in their legislation and policy practices. Comparability and completeness of data would be difficult to achieve, resulting in EU market fragmentation and loss of market transparency. The lack of a common database containing all Member States’ monitoring data would, in particular, hamper use of the data by purchasers of vehicles and by policy makers at EU level. A common monitoring scheme at EU level appears to be the most straightforward and simple approach. This same approach is already followed for cars and vans through EU-level action. •Proportionality Given that the proposal is both necessary and has potential economic benefits, it meets proportionality requirements — on an EU-wide scale, the efforts needed are minimal and costs almost negligible compared with the potential benefits of market transparency and the availability of data on HDV CO2 emissions and fuel consumption for all stakeholders. •Choice of the instrument In order to achieve uniform application of the proposed rules throughout the EU and obtain a homogeneous and comparable dataset that creates a level playing field for manufacturers of heavy-duty vehicles and users of such vehicles, it is appropriate to use a Regulation which is directly applicable and binding on the Member States. 3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS •Ex-post evaluations/fitness checks of existing legislation

No evaluation has been carried out as the issue was previously unregulated. •Stakeholder consultations The Commission organised a stakeholder meeting to receive feedback on the inception impact assessment and present the administrative cost assessment carried out by the external consultant. Constructive feedback was received from stakeholders and the cost assessment was not challenged. The Commission also organised a public online consultation on preparing legislation on monitoring and reporting HDV fuel consumption and CO2 emissions. 121 replies were received from a broad spectrum of stakeholders, providing their opinions on the need for action, the objectives, the options and anticipated impact. Stakeholders’ views were integrated into the impact assessment; the selected option is also the option preferred by most respondents. A synopsis of the stakeholder consultation is provided in Annex 2 of the impact assessment for this proposal. •Collection and use of expertise The cost assessment of the different monitoring and reporting options was carried out by an external contractor (see Annex 10 of the impact assessment). The study is largely based on interviews with national registration authorities and HDV manufacturers, to collect their opinions on various monitoring options and receive targeted input with regard to the costs to their organisations, taking into account the current procedures and required adaptations. Moreover, the impact assessment relies on the previous impact assessment that accompanied the 2014 Strategy for reducing Heavy-Duty Vehicles’ fuel consumption and CO2 emissions, in relation to the assessment of the other impacts. •Impact assessment The impact assessment accompanying this proposal has been prepared and developed in line with the applicable Better Regulation guidance, and the Regulatory Scrutiny Board has issued a positive opinion. Improvements as recommended by the Board have been incorporated in the final version. It complements the analysis conducted in the 2014 impact assessment supporting the HDV Strategy. The impact assessment considered options related to the monitoring and reporting of CO2 emissions from all new HDVs placed on the EU market subject to the certification process under the type approval framework. The data to be monitored and reported on consist of around 80 parameters relevant for determining the fuel consumption and CO2 emissions of each vehicle. The European Environment Agency (EEA) is the most appropriate body at European level to act on the Commission’s behalf to collate data, build a new database, and analyse and perform quality checks on the reported monitoring data on HDVs. The EEA already carries out these tasks for the reported monitoring data on light-duty vehicles (see Annex 8 of the impact assessment). The impact assessment considered three legislative options on how such monitoring data should be reported to the Commission via the EEA: 1) reporting by national authorities; 2) reporting by HDV manufacturers; and 3) mixed reporting by national authorities and manufacturers. Under option 1, national authorities report the monitoring data along with the relevant registration data of the vehicles concerned to the Commission via the EEA. Under this option, full digitisation of monitoring and reporting may not be easily achieved, as the majority of national registration authorities still use paper files to register HDVs. As a result, adaptation to fully digitised flows of monitoring data may be challenging and costly. Option 2 would put HDV manufacturers in charge of reporting the monitoring data on each new vehicle to the Commission via the EEA. In such a case the monitoring data would be based on sales data in the possession of vehicle manufacturers, and no registration data would be reported. As a result, the reported emissions data could not be allocated to a particular Member State. This would make it more difficult for Member States to design effective national policies to increase the uptake of more efficient HDVs. Option 3 is an intermediate option. Designated national authorities — most of which are expected to be the national registration authorities — would annually report to the Commission via the EEA registration data of new registered vehicles, in particular vehicle identification numbers, VINs. Vehicle manufacturers would submit the monitoring data corresponding to those vehicles to the Commission via the EEA. On the basis of the VIN numbers, the two datasets would be combined by the EEA in order to obtain monitoring data at a Member State level. Under this option, full digitisation of the flow of data is ensured, since manufacturers are in charge of reporting the monitoring data, which they already own in a digital format for certification purposes. Option 3 is the preferred option. It is the most effective, particularly as it ensures the digital flow of information and provides data coverage at both national and EU levels, and its administrative cost is modest. The selected option is likely to generate competition to produce more energy-efficient vehicles and incentives to innovation. The effects of more energy-efficient freight are expected to spread, at least partially, to most sectors of the EU economy: lower fuel operating costs of transport would trigger lower transport prices, thereby reducing other sectors’ costs and eventually benefitting EU consumers. Competitiveness and the international impact are expected to be positive in the medium/long-term, for HDV manufacturers too, given the international context where other main markets (such as the US, Canada, Japan and China) already have regulations in place requiring improvements in the fuel efficiency of HDVs. Employment is expected to benefit in the medium/long term. Incremental efficiency improvement of the vehicles purchased should result in CO2 emission savings. Favourable but only negligible reductions are expected in other emissions. The only economic costs are administrative costs. They are expected to be negligible — an estimated EUR 1 per vehicle.

•Regulatory fitness and simplification There are no direct reporting obligations for SMEs or micro-enterprises. Transport operators, most of which are SMEs, are expected to benefit from increased market transparency. This will enable them to make better informed purchasing decisions in favour of the most fuel- efficient vehicles which, through fuel cost savings, can reduce their operational costs and increase their competitiveness. The proposed Regulation will make use of e-reporting, which is expected to limit the administrative burden for HDV manufactures, national authorities and the Commission/EEA. •Fundamental rights The proposal has no consequences for the protection of fundamental rights. 4.BUDGETARY IMPLICATIONS The budgetary impact resulting from the implementation of the proposed Regulation is very limited (see details in the attached Legislative Financial Statement). While staying within the overall MFF 2014-2020 ceiling for Heading 2, it would require a small reprogramming for the EEA for the years 2019 and 2020. 5.OTHER ELEMENTS •Implementation plans and monitoring, evaluation and reporting arrangements On the basis of the information provided by the Member States and HDV manufacturers, the Commission shall produce a report annually. This Commission’s reporting will ensure close monitoring of the Regulation’s implementation. •Detailed explanation of the specific provisions of the proposal Article 1 – Subject matter This Article explains the key measures provided for by the Regulation, namely to monitor and report on the CO2 emissions and fuel consumption of HDVs, i.e. lorries, buses and coaches. Article 2 – Scope This Article defines the scope of the Regulation and specifies the categories of vehicles for which registration data, technical data and, where available, the CO2 emission and fuel consumption data should be monitored and reported. Article 3 – Definitions The Regulation is closely linked to and uses the same terminology as that used in the type approval legislation. In order to ensure consistency across the different legal instruments, it is therefore made clear that the terminology used in this Regulation is to be understood in the same way as that defined in the type approval legislation. Article 4 – Monitoring and reporting by Member States This Article sets out the essential obligations imposed on Member States with regard to the monitoring and reporting timetable, the designation of the competent authorities and the data to be monitored. These include new heavy-duty vehicles and new trailers registered for the first time in the Union, or registered outside the Union but less than three months before registration in the Union. In the case of the competent authorities, it is made clear that those authorities that are already responsible for the monitoring and reporting of data on light-duty vehicles should be the authorities responsible for monitoring also in the case of heavy-duty vehicles.

Annexes I and II complement this provision by specifying the data parameters to be monitored as well as the administrative steps of the monitoring and reporting procedure. Article 5 – Monitoring and reporting by manufacturers This Article sets out the essential obligations imposed on manufacturers with regard to the monitoring and reporting timetable, the designation of contact points and the data to be monitored. Annexes I and II complement this provision by specifying the data parameters to be monitored as well as the administrative steps of the monitoring and reporting procedure. Article 6 – Central Register for data on heavy-duty vehicles The data reported to the Commission shall be maintained in a publicly available register. The register will be maintained by the EEA on behalf of the Commission, building on the experience gained by the EEA in maintaining the data register for light-duty vehicles. While the majority of data records should be publicly available, certain data may not be disclosed due to the need to protect private data (vehicle identification numbers), and competition reasons (names of component manufacturers). Article 7 – Data quality High-quality data are essential for achieving the objectives of this Regulation. It is therefore important to make clear that the entities reporting data are responsible for the quality and correctness of the data delivered. Moreover, the Commission shall have the possibility to perform its own verification of the data quality as well as correcting data, if there are errors in the data submitted. Article 8 – Report The data reported to the Commission via the EEA should result in an annual analysis of CO2 emission trends and developments in the heavy-duty vehicle fleet in the EU, as well as those of individual manufacturers of heavy-duty vehicles. This annual analysis shall be carried out by the Commission with the support of the EEA and will serve as an important input to the wider annual progress report mandated under the proposed Regulation on the Governance of the Energy Union, in the context of the State of the Energy Union. The analysis will also provide important input into any further possible policy measures. The analysis will provide increased transparency with regard to the technology configurations and the performance of both the EU fleet and individual vehicles in terms of CO2 emissions and fuel consumption. Article 9 and 10 – Implementing measures and delegation of powers These articles provide respectively the legal bases for the Commission to adopt implementing measures and, by way of delegated acts, amend non-essential elements of Annexes I and II. The implementing measures will complement Article 7 by allowing the Commission to define the detailed provisions and procedures needed for verifying and correcting the reported data. The delegated powers conferred on the Commission include adjusting and up-dating the data parameters to be monitored as well as the different steps in the monitoring procedure set out in Annexes I and II. Article 11 and 12 – Committee procedure and exercise of delegation These Articles set out the standard provisions relating to the Committee procedure to be used for adopting implementing acts and for exercising the delegated powers referred to in Article 9(2) and (3). 2017/0111 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the monitoring and reporting of CO2 emissions from and fuel consumption of new heavy-duty vehicles (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the ordinary legislative procedure, Whereas: (1)A binding target of at least a 40 % domestic reduction in economy-wide greenhouse gas emissions by 2030 compared to 1990 was endorsed in the Conclusions of the European Council of 23-24 October 2014 on the 2030 climate and energy policy framework, and this was reconfirmed at its meeting in March 2016. (2)The European Council conclusions of October 2014 provided that the target should be delivered collectively by the Union in the most cost-effective manner possible, with the reductions in the Emissions Trading System (ETS) and non-ETS sectors amounting to 43 % and 30 % respectively by 2030 compared to 2005. All Member States should participate in that effort and all sectors of the economy should contribute to achieving those emission reductions, including transport. (3)The Commission’s 2016 European Strategy for low-emission mobility set the objective of at least a 60 % reduction in emissions from transport by 2050 compared to 1990 levels. (4)Greenhouse gas emissions from lorries, buses and coaches, i.e. heavy-duty vehicles, currently represent around a quarter of road transport emissions in the Union and are expected to increase further by 2030. Effective measures to curb emissions from heavy-duty vehicles need to be introduced in order to contribute to the necessary emission reductions in the transport sector. (5)In its 2014 Communication on a Strategy for reducing Heavy-Duty Vehicles’ fuel consumption and CO2 emissions, the Commission recognised that a prerequisite to introducing such measures is a regulated procedure for the determination of CO2 emissions and fuel consumption. (6)Regulation (EC) No 595/2009 of the European Parliament and the Council provides the framework for the setting up of such a regulated procedure. The measurements will provide robust and comparable CO2 emissions and fuel consumption data for each vehicle for a significant part of the heavy-duty vehicle fleet in the Union. The purchaser of a specific vehicle and the respective Member State of registration will have access to that information, partially closing the knowledge gap. (7)Information on a vehicle’s performance in terms of CO2 emissions and fuel consumption should be made publicly available to enable all vehicle operators to take well-informed purchasing decisions. All vehicle manufacturers will be able to compare their vehicles’ performance with those of other makes. This will increase the incentives for innovation and therefore increase competitiveness. That information will also provide policy makers at Union and Member State level with a sound basis for developing policies to promote the uptake of more energy-efficient vehicles. It is therefore appropriate that the CO2 emissions and fuel consumption values determined for each new heavy-duty vehicle pursuant to Commission Regulation (EU) […/…] [Opoce to include correct reference] are monitored, reported to the Commission and made available to the public. (8)In order to acquire a complete knowledge on the configuration of the heavy-duty vehicle fleet in the Union, its development over time and potential impact on CO2 emissions, it is appropriate to monitor and report data on the registration of all new heavy-duty vehicles and all new trailers, including data on the powertrains as well as the relevant bodywork. (9)Data on CO2 emissions and fuel consumption will be available for certain new heavy-duty vehicles that are registered in [2019]. Starting from that date, the competent authorities of the Member States should therefore be required to provide data on new registrations and manufacturers should be required to provide the technical data relating to those vehicles. (10)Technical data essential for determining the CO2 emissions and fuel consumption performance of a vehicle should be publicly available to increase the transparency of the vehicle specifications and the related performance, and to foster competition among manufacturers. Only data that are sensitive on the grounds of personal data protection and fair competition should not be published. However, it is clearly in the public interest that technical data essential for determining the performance of vehicles is available. Such data should therefore not be exempt from public access. (11)It is important to ensure that the data monitored and reported is robust and reliable. The Commission should therefore have the means to verify and, where necessary, correct the final data. Parameters allowing the data to be adequately traced and verified should therefore also be provided for in the monitoring requirements. (12)Based on the experience gained from the monitoring and reporting of data on CO2 emissions pursuant to Regulation (EC) No 443/2009 of the European Parliament and of the Council for new passenger cars and Regulation (EU) No 510/2011 of the European Parliament and of the Council for new light commercial vehicles, it is appropriate to confer on the European Environment Agency the responsibility for the exchange of the data with the competent authorities of the Member States and manufacturers, as well as for the management of the final database on behalf of the Commission. It is also appropriate to align as far as possible the monitoring and reporting procedures for heavy-duty vehicles with those already existing for light-duty vehicles.

(13)In order to ensure uniform conditions for the implementation of the provisions of this Regulation on the verification and correction of the monitored data, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. (14)In order to ensure that the data requirements and the monitoring and reporting procedure remain relevant over time for assessing the heavy-duty vehicle fleet’s contribution to CO2 emissions, as well as to ensure the availability of data on new and advanced CO2 reducing technologies, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the data requirements and the monitoring and reporting procedure laid down in the Annexes. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. (15)Since the objective of this Regulation, namely the monitoring and reporting of CO2 emissions and fuel consumption from new heavy-duty vehicles in the Union, cannot be achieved by the Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective, HAVE ADOPTED THIS REGULATION: Article 1

Subject matter This Regulation lays down the requirements for the monitoring and reporting of CO2 emissions from and fuel consumption of new heavy-duty vehicles registered in the European Union. Article 2

Scope This Regulation shall apply to the monitoring and reporting by Member States and manufacturers of heavy-duty vehicles of data on new vehicles. It shall apply with regard to the following vehicle categories: (a)heavy-duty vehicles of categories M1, M2, N1 and N2 with a reference mass exceeding 2 610 kg not falling within the scope of Regulation (EC) No 715/2007 of the European Parliament and of the Council, and all vehicles of categories M3 and N3; (b) vehicles of categories O3 and O4. Article 3

Definitions For the purposes of this Regulation, the definitions set out in Directive 2007/46/EC of the European Parliament and of the Council and Regulation (EC) No 595/2009 of the European Parliament and of the Council shall apply. Article 4

Monitoring and reporting by Member States 1.By 28 February each year, starting in [2020], the competent authorities of the Member States shall collect the data specified in Part A of Annex I for the preceding calendar year relating to new vehicles registered for the first time in the Union. Data relating to new vehicles that were registered previously outside the Union shall not be monitored and reported, unless that registration was made less than three months before registration in the Union. The data shall be communicated to the Commission in accordance with the reporting procedure set out in Annex II. 2.The competent authorities responsible for the collection and communication of the data in accordance with this Regulation shall be those designated by the Member States in accordance with Article 8(7) of Regulation (EC) No 443/2009. Article 5

Monitoring and reporting by manufacturers 1.By 28 February each year, starting in [2020], manufacturers of heavy-duty vehicles shall collect the data specified in Part B of Annex I with regard to vehicles with a date of production falling within the preceding calendar year. The date of production shall be the date of signature of the certificate of conformity or, where applicable, the date of signature of the individual approval certificate.

2.Manufacturers shall appoint a contact point for the purpose of reporting data in accordance with this Regulation. Article 6

Central Register for data on heavy-duty vehicles 1.The Commission shall keep a central register for the data reported in accordance with Articles 4 and 5. The register shall be publicly available with the exception of data entries 1, 24, 25, 32, 33, 39 and 40 specified in Part B of Annex I. 2.The register shall be managed by the European Environment Agency (EEA) on behalf of the Commission. Article 7

Data quality 1.The competent authorities and manufacturers shall be responsible for the correctness and quality of the data they report pursuant to Articles 4 and 5. They shall inform the Commission of any errors detected in the data reported without delay. 2.The Commission may carry out its own verification of the quality of the data reported pursuant to Articles 4 and 5. 3.Where the Commission is informed of errors in the data or finds, pursuant to its own verification, discrepancies in the dataset, it shall, where appropriate, take the necessary measures to correct the data published in the Central Register referred to in Article 6. Article 8

Report 1.The Commission shall, as part of its annual report under [Article 29 of the proposed regulation on the Energy Union Governance], publish its analysis of the data transmitted by Member States and manufacturers for the preceding calendar year. 2.The analysis shall indicate, as a minimum, the performance of the heavy-duty vehicle fleet of the Union as well as that of each manufacturer in terms of the average fuel consumption and CO2 emissions. It shall also, where available, take into account data on the uptake of new and advanced CO2 reducing technologies. 3. The Commission shall prepare the analysis with the support of the EEA. Article 9

Conferral of implementing powers The Commission may, by means of implementing acts, determine the verification and correction measures referred to in paragraphs 2 and 3 of Article 7. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11. Article 10

Delegation of powers 1.The Commission is empowered to adopt delegated acts in accordance with Article 12 with a view to amending Annex I for the purpose of updating or adjusting the data requirements specified therein where this is deemed necessary in order to provide for a thorough analysis in accordance with Article 8. 2.The Commission is empowered to adopt delegated acts in accordance with Article 12 with a view to amending Annex II for the purpose of adjusting the monitoring and reporting procedure set out therein in order to take into account the experience gained from the application of this Regulation. Article 11

Committee procedure 1.The Commission shall be assisted by the Climate Change Committee established by Article 9 of Decision No 280/2004/EC of the European Parliament and of the Council. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. Article 12

Exercise of delegation 1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2.The power to adopt delegated acts referred to in Article 10 shall be conferred on the Commission for an indeterminate period of time from [the date of entering into force of this Regulation]. 3.The delegation of power referred to in Article 10 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. 5.As soon as it adopts a delegated act the Commission shall notify it simultaneously to the European Parliament and to the Council. 6.A delegated act adopted pursuant to Article 10 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. Article 13

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 European Parliament For the Council The President The President Legislative financial statement ‘Agencies’ European Environment Agency (EEA) 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.Objective(s) 1.5.Grounds for the proposal/initiative 1.6.Duration and financial impact 1.7.Management mode(s) planned 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 [body]'s appropriations 3.2.3.Estimated impact on [body]'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 Regulation of the European Parliament and of the Council on the monitoring and reporting of CO2 emissions from and fuel consumption of new heavy-duty vehicles 1.2.Policy area(s) concerned in the ABM/ABB structure 34: Climate action 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 ◻ 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 proposal constitutes a key legislative measure of the first package on mobility to be adopted in May 2017. It contributes to the implementation of the Commission's European Strategy for low-emission mobility, adopted in 2016, and its action plan to improve fuel efficiency and to reduce emissions from heavy-duty vehicles (HDVs), i.e. lorries, buses and coaches. The proposal is part of the implementing measures announced in the 2014 Commission Communication on a Strategy for Reducing Heavy-duty Vehicles' fuel consumption and CO2 emissions in order to establish a procedure for the certification of HDVs CO2 emissions and to monitor and report them for all new vehicles placed on the EU market. This measure will provide the key enforcement tool for the future CO2 emission standards of HDVs which the Commission has committed to propose in 2018. The proposal contributes to achieving the EU commitment to achieve at least 40% domestic emission reduction by 2030 compared to 1990. 1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned Specific objective No 3 Further decarbonisation of the transport sector in the EU through development and implementation of harmonised policies (in cooperation with other DGs like DG MOVE, GROW,...) ABM/ABB activity(ies) concerned ABB Activity 34 02 – Climate action at Union and international level.

ABB Activity 07 02 – Environmental policy at Union and international level (budget article 07 02 06 European Environment Agency). 1.4.3.Expected result(s) and impact Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. The proposal will establish a system for the monitoring and reporting of CO2 emissions and fuel consumption from new heavy-duty vehicles (HDVs) placed on the EU market. The proposal will contribute to a more transparent HDV market which will stimulate competition among HDV manufacturers and transport operators. This will in turn stimulate innovation at the level of component and vehicle manufacturers to produce more energy efficient vehicles in the EU market. It is expected that if monitoring and reporting triggers an additional incremental 1% improvement of the energy efficiency of the EU HDV fleet, this would translate into CO2 emission reduction of around 2.1 Mt. 1.4.4.Indicators of results and impact Specify the indicators for monitoring implementation of the proposal/initiative. Indicator nr 1: Average annual CO2 emissions and fuel consumption per vehicle class, manufacturer and Member State from new HDVs registered in the EU within the scope of the certification legislation. Indicator nr 2: Comparison of average annual CO2 emissions and fuel consumption of the same class of vehicles across different years. Indicator nr 3: Annual overview of fuel efficiency technologies fitted in the new vehicles and their penetration level. 1.5.Grounds for the proposal/initiative 1.5.1.Requirement(s) to be met in the short or long term Member States and manufacturers of heavy-duty vehicles newly registered in the EU would have to collect and report CO2 monitoring data to the Commission using the European Environment Agency's Data Repository. The European Environment Agency would collect and manage the data. A dataset would be made publicly available every year. The Commission would publish an annual monitoring report. 1.5.2.Added value of EU involvement Markets for new HDVs and transport services are both operating EU-wide and are integral parts of the Single Market. The lack of transparency concerning fuel consumption and CO2 emissions from new HDVs is not yet addressed in any of the Member States and concerns the EU as a whole. Moreover, HDV CO2 emissions are covered under the EU’s greenhouse gas emission reduction target. In the absence of an EU-wide monitoring and reporting legislation, national authorities may adopt different monitoring and reporting approaches leading to a fragmented and inconsistent collection of such data across the EU. This would lead to high administrative burden for HDV manufacturers who would have to comply with different reporting systems. However, the public consultation carried out in the perperation of the propposal indicates that national authorities would rather not act at all. An EU-wide system for monitoring and reporting CO2 emission and fuel consumption for HDVs will provide access to information on the level of penetration and actual diffusion of advanced fuel efficient technologies for HDV buyers and policy makers. In addition, climate change is a trans-boundary problem and at the same time is a competence shared between the EU and Member States. Coordination of climate action at European level is therefore necessary and EU action is justified on grounds of subsidiarity.

1.5.3.Lessons learned from similar experiences in the past For cars and vans a mandatory EU-wide system to monitor and report CO2 emissions is already in place. The system has proved to be very valuable in providing more transparency on the EU market for new passenger cars and light commercial vehicles. The annually published dataset by the EEA is widely used for comparing CO2 emissions of light duty vehicles in the EU. It also constitutes the basis for setting CO2 performance standards for cars and vans and to assess manufacturers' annual compliance with these standards. The proposed EU-wide monitoring and reporting system for HDVs builds heavily on the lessons learned from the EU-wide monitoring and reporting system for light commerical vehicles. As for light commercial vehicles the proposed Regulation foresees a monitoring system based on vehicle identificaiton numbers (VINs) and data would be submitted by both Member States and manufacturers in order to keep the administrative burden to a minimum. As in the case of the monitoring and reporting system for cars and vans, the European Environment Agency's Data Repository would be used for data submission. Moreover, given the European Environment Agency's accumulated experience on CO2 monitoring, the European Environment Agency would also support the Commission in managing the EU-wide monitoring system for HDVs. 1.5.4.Compatibility and possible synergy with other appropriate instruments The proposal is consistent with the proposed Commission Regulation […] implementing Regulation (EU) No 595/2009 as regards the certification of the CO2 emissions and fuel consumption of heavy-duty vehicles and amending Directive 2007/46/EC of the European Parliament and of the Council. 1.6.Duration and financial impact ◻ Proposal/initiative of limited duration –◻ Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY –◻ Financial impact from YYYY to YYYY ☑ Proposal/initiative of unlimited duration –Implementation with a start-up period from 2018 (without the financial impact) for unlimited duration, –followed by full-scale operation. 1.7.Management mode(s) planned ☑ Direct management by the Commission –☑ by its departments, including by its staff in the Union delegations; – by the executive agencies ◻ Shared management with the Member States ☑ Indirect management by entrusting budget implementation tasks to: –◻ third countries or the bodies they have designated; –◻ international organisations and their agencies (to be specified);

–◻the EIB and the European Investment Fund; –☑ bodies referred to in Articles 208 and 209 of the Financial Regulation; –◻ 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. –If more than one management mode is indicated, please provide details in the ‘Comments’ section. Comments The participation of the European Environment Agency (EEA) will be needed for the implementation of the requirements of the proposed Regulation on the monitoring and reporting of CO2 emissions from and fuel consumption of new heavy-duty vehicles. 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules Specify frequency and conditions. The proposed Regulation specifies the frequency and the data to be reported by Member States and manufacturers for heavey duty vehicles newly registered in the Union. Data as specified in the proposed Regulation would have to be reported annually using the European Environment Agency's Data Repository. In order to support Member States and manufacturers in their annual reporting further guidance will be provided through CIRCABC. 2.2.Management and control system 2.2.1.Risk(s) identified Member States or manufacturers may become delayed in their monitoring and reporting obligations. It is anticipated that Member States would designate the same authorities which are already responsible for monitoring and reporting for cars and vans. These authorities are familiar with monitoring and reporting and the relevant IT tools which will minimise such risks. The European Environment Agency's Data Repository is a well established data reporting system. A possible breakdown of the system and confidentiality issues can be considered to be sufficiently addressed. 2.2.2.Information concerning the internal control system set up The control methods envisaged are laid down in the Financial Regulation and Rules of Application. 2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

N/A 2.3.Measures to prevent fraud and irregularities Specify existing or envisaged prevention and protection measures. In addition to the application of the Financial Regulation to prevent fraud and irregularities, building on the well-established system for the monitoring and reporting of CO2 emissions for new passenger cars and light commerical vehicles, quality control and verification of the submitted data will be carried out in order to address any gaps or irregularities. 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected ·Existing budget lines In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution Number

[Heading………………………...…………] Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation 2 34 02 01: Reduction of GHG emissions (mitigation) Diff. NO NO NO NO 2 07 02 06 : European Environment Agency Non-Diff. YES YES YES NO ·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

[Heading………………………………………] Diff./non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation [XX.YY.YY.YY] YES/NO YES/NO YES/NO YES/NO 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 Number 2 Sustainable Growth: Natural Resources [Body]: <EEA – European Environment Agency> Year

2019 Year

2020 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL 2019-2020 Title 1: Staff expenditure Commitments (1) 0.150 0.200 0.350 Payments (2) 0.150 0.200 0.350 Title 2: Infrastructure and operating expenditure Commitments (1a) Payments (2a) Title 3: Operational expenditure Commitments (3a) 0.250 0.175 0.425 Payments (3b) 0.250 0.175 0.425 TOTAL appropriations

for [body] <EEA> Commitments =1+1a +3a 0.400 0.375 0.775 Payments =2+2a +3b 0.400 0.375 0.775







3.2.2.Estimated impact on [body]'s appropriations –□ The proposal/initiative does not require the use of operational appropriations –☑ The proposal/initiative requires the use of operational appropriations, as explained below: Commitment appropriations in EUR million (to three decimal places) Indicate objectives and outputs ⇩ Year

2019 Year

2020 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL OUTPUTS Type Average cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost Total No Total cost SPECIFIC OBJECTIVE No 1… - Establishment reporting platform 1 0.250 0.250 Assistance detailed QA/QC- reporting MS/OEMs, communication with countries and manufacturers, database administration and maintenance, helpdesk support etc. 1 0.175 0.025 - Output Subtotal for specific objective No 1 1 0.250 1 0.175 0.275 SPECIFIC OBJECTIVE No 2 ... - Output Subtotal for specific objective No 2 TOTAL COST 1 0.250 1 0.175 0.275 3.2.3.Estimated impact on EEA's human resources 3.2.3.1.Summary –◻ 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 explained below: EUR million (to three decimal places) EUR million (to three decimal places) Year

2019 Year

2020 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL 2019+2020 Officials (AD Grades) Officials (AST grades) Contract staff 0.150 0.200 0.350 Temporary staff Seconded National Experts TOTAL 0.150 0.200 0.350 Estimated impact on the staff (additional FTE) – establishment plan Function group and grade Year 2019 Year 2020 Year N+2 Enter as many years as necessary to show the duration of the impact (see point 1.6) AD16 AD15 AD14 AD13 AD12 AD11 AD10 AD9 AD8 AD7 AD6 AD5 AD Total AST11 AST10 AST9 AST8 AST7 AST6 AST5 AST4 AST3 AST2 AST1 AST Total AST/SC 6 AST/SC 5 AST/SC 4 AST/SC 3 AST/SC 2 AST/SC 1 AST/SC Total GRAND TOTAL

Estimated impact on the staff (additional) – external personnel Contract agents Year N Year N+1 Year N+2 Enter as many years as necessary to show the duration of the impact (see point 1.6) Function group IV 1 1 Function group III 1(*) 1 Function group II Function group I Total 2 2 (*) the recruitment is foreseen in the middle of 2019. Seconded National Experts Year N Year N+1 Year N+2 Enter as many years as necessary to show the duration of the impact (see point 1.6) Total Please indicate the planned recruitment date and adapt the amount accordingly (if recruitment occurs in July, only 50 % of the average cost is taken into account) and provide further explanations in an annex. Over and above the 1 temporary agent and 1 contract agent currently working in the EEA on tasks related to CO2 monitoring from cars and vans, and reflecting the unlimited duration of the extra activities being proposed for the Agency, the EEA needs 2 additional contract agents to manage: ·Establishment, management and maintaining new reporting streams and e-reporting infrastructure including all IT-related activities, in relation to the data submission for HDVs; ·Performing detailed data quality assessement and quality control for data submissions by Member States and manufacturers, including coordinating communications with Member State authorities and manufacture experts, associated helpdesk support etc.; ·Compilation and publication of datasets on EEA's website for the European Commission and other stakeholders. One contract agent (Function group IV) would start in 2019 for preparing and implementing the reporting system to ensure that it is full operational in 2020. The second contract agent (Function group III) would start in the second half of 2019 to support the implementation of the reporting system as well as the preparation of quality assurance and data quality control systems. The budgetary impact has been calculated accordingly assuming an average cost of EUR 100 000 per year/contract agent. 3.2.4.Compatibility with the current multiannual financial framework –☑ The proposal/initiative is compatible the current multiannual financial framework. –☑ The 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. The proposed initiative would require an increase of the Finanical Programming for the contribtuion to the European Environment Agency (EEA) financed by budget article 07 02 06 for the years 2019 and 2020 with the amounts indicated in table 3.2.1 above. –◻ The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework.