Amended proposal for a Directive of the European Parliament and of the Council on the promotion of the use of biofuels for transport presented by the Commission pursuant to Article 250 (2) of the EC-Treaty
Date: 2002-09-12
Institutions: European Commission
Subjects: EU environmental policy, common transport policy, exchange of information, road transport, substitute fuel

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Amended proposal for a Directive of the European Parliament and of the Council on the
promotion of the use of biofuels for transport (1)

(2002/C 331 E/46)

(Text with EEA relevance)

COM(2002) 508 final — 2001/0265(COD)

(Submitted by the Commission pursuant to Article 250(2) of the EC Treaty on 12 September 2002)

(Amendements are indicated by underlining/strikeout in the text)

A. PRINCIPLES

EXPLANATORY MEMORANDUM

1. In November 2001, the Commission submitted a Proposal for a Directive of the European Parliament
and of the Council on the promotion of the use of biofuels for transport (COM(2001) 547 final —
2001/0265(COD)) for adoption by the codecision procedure laid down in Article 251 of the Treaty
establishing the European Community.

2. On 4 July 2002, the European Parliament adopted a series of amendments at its first reading. The
Commission gave its position on each of these amendments at that time, indicating those amendments
it could accept as they are, those that could be accepted in principle and/or with redrafting, those that
could be accepted in part and those that could not be accepted.

3. In the light of this, the Commission has drafted this amended proposal.

4. The Commission made three types of amendments with the following justifications.

Firstly, a number of new provisions have been accepted from the first reading by the European
Parliament as they are. These amendments serve to improve definitions or to add clarity and
elaborate and illustrate points in the proposal.

Secondly,
the Commission has accepted some amendments in principle, although with minor
redrafting, e.g. to improve consistency with other parts of the proposal or to define more clearly
certain conditions, limits or exceptions.

Thirdly, the Commission has taken parts of amendments from the first reading when and where these
specific parts were deemed consistent with the purpose of the proposal and provided added value while
for the amendment in its entirety, this was not the case.

Moreover, the Commission has introduced some editorial changes in accordance with the guidelines of
the Interinstitutional Agreement.

B. COMMENTS AS REGARDS THE ACCEPTED AMENDMENTS

Recitals

Recital 3

This new recital emphasizes the use of secondary biomass and the parallel production of vegetable
proteins.

Recital 4

This amendment recalls the enlargement.

(1) OJ C 103 E, 30.4.2002, p. 205.

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Recital 5

This new recital mentions the White Paper on transport and emphasizes the importance of using alter-
native fuels such as biofuels.

Recital 7

This amendment is in line with the Communication on alternative fuels.

Recital 8

This new recital touches the biofuels blends and recalls the normal integration of biofuels into the fuel
market.

Recital 9

This new recital welcomes an orientation of research on biofuels.

Recital 10

This new recital provides useful information to the customer.

Recital 11

This new recital talks about the development in the future of — more specifically — the hydrogen option,
and is in line with the Communication on alternative fuels.

Recital 12

This new recital reminds that a Research policy contributes to the compatibility of biofuels and hydrogen.

Recital 13

This new recital — of which the wording was adapted — concerns the standards for biofuels and
constitutes a good mixture of quality exigencies and a reasonable level of flexibility for a new market.

Recital 14

This new recital welcomes harmonised standards, more specifically for bioethanol and biodiesel.

Recital 15

This amendment — which is partially accepted — concerns the contribution of biofuels to the multi-
functionality of agriculture.

Recital 17

This new recital concerns objectives set in the Commission's Green Paper on Security of Supply and is also
in line with the Communication on alternative fuels.

Recital 18

This new recital clarifies that alternative fuels will have to become more widespread in order to achieve
market penetration.

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Recital 19

This amendment completes the text of the Parliament Resolution.

Recital 20

This amendment suggests a possible enlargement of actors.

Recital 22

This new recital recalls the normal integration of biofuels.

Recital 24

This new recital — of which the wording was adapted — promotes research on the sustainability of
biofuels.

Recital 25

This new recital clarifies and supports Article 4.3 of the Proposal.

Recital 26

This — partially accepted — amendment talks about different biofuels and other, alternative fuels. These
types of oils were already included in the general biomass definition.

Recital 27

This new recital contributes to the development of biofuels as it sets provisions for the development of
appropriate quality standards.

Recital 28

This new recital reinforces coherent national policies.

Recital 29

This new recital promotes clear information to the customers.

Recital 30

This new recital recalls the creation of a new, agricultural market.

Articles

Article 2

Point 2

Editiorial change in order to stay coherent with the change in the Annex — Part A.

Article 3

Point 2

This amendment introduces a reporting system on the environmental impact and on the costs by Member
States to the Commission and is in line with the agreement at the Energy Council.

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Point 3

This new — slightly reworded — text allows for the promotion of the technical development of biofuels
and stresses the importance of a coherent national policy.

Point 4(a)

This amendment is a recall on existing biofuels with high blends.

Point 6

This new point puts priority on the promotion of biofuels in public transport and is in line with the
Commission's policy in transport.

Point 7

This new point gives priority to the promotion of biofuels with a good environmental balance and is in
line with the Commission's policy on the promotion of biofuels and on the integration of environmental
concerns.

Article 4

Point 1

This amendment specifies more as well as clarifies the reporting system by the Member States to the
Commission. It also introduces a date for the introduction of the first report.

Point 2

This new point promotes the possibilities of biofuels to the public and gives information to consumers.

Point 3

This amendment specifies aspects about the Commission's evaluation report to be published every two
years and stimulates environmentally-friendly concerns. This is in line with the promotion of biofuels and
the integration of environmental concerns.

Point 4

This new point introduces compliance with standard prEN 14214 of biodiesel end products for fuels and is
in line with the existing European standards.

Article 5

Paragraph 3

This new paragraph stresses the importance of environmental criteria.

Paragraphs 4 and 5

These new paragraphs introduce a transitional period (under specific conditions) of maximum 2 years for
Member States with special difficulties.

Annexes

Part A — title

This amendment clarifies that Annex A is not a closed list.

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Part A – ‘biodiesel’ definition

This amendment details part of the biodiesel definition and it clarifies the standards.

Part A — ‘biohydrogen’ definition

This new definition is introduced, as Annex A is not a closed list. The inclusion of this definition follows
the view of the Commission's Communication on alternative fuels.

Part B — table

The last column of the table on the blending percentage has been taken and Article 3 has been adapted
accordingly.

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

countries following their accession to the European
Union.

Having regard to the Treaty establishing the European
Community, and in particular Article 175(1) thereof,

(5)

Having regard to the proposal from the Commission,

Having regard to the opinion of the Economic and Social
Committee,

Having regard to the opinion of the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty,

(46)

Whereas:

The European Council meeting at Gothenburg on 15
and 16 June 2001 adopted a Community strategy for
sustainable development
set of
measures, which include the development of biofuels.

consisting in a

(57)

(1)

(2)

(3)

Natural resources, and their prudent and rational utili-
sation as referred to in Article 174(1) of the Treaty,
include oil, natural gas and solid fuels, which are
essential
sources of energy but also the leading
sources of carbon dioxide emissions.

However, there is a wide range of renewable biomass
that could be used to produce biofuels, deriving from
agricultural and forestry products, as well as residues
and waste from forestry and the forestry and agri-
foodstuffs industry. In addition, it is also possible to
obtain by-products which are rich in vegetable protein
for animal fodder.

(34)

The transport sector accounts for more than 30 % of
final energy consumption in the Community and is
expanding — a trend which is bound to increase,
along with carbon dioxide emissions. That expansion
will be greater in percentage terms in the candidate

According to the Commission's White Paper ‘European
time to decide’ (1), CO2
transport policy for 2010:
emissions from transport are expected to rise by
50 % between 1990 and 2010,
to around 1 113
million tonnes, the main source being road transport,
transport-related CO2
which accounts for 84 % of
emissions. From an ecological point of view,
the
White Paper therefore calls for dependence on oil
(currently 98 %)
to be
reduced by using alternative fuels such as biofuels.

transport

in the

sector

Greater use of biofuels for transport forms a part of
the package of measures needed to comply with the
Kyoto Protocol, and of any policy package to meet
further commitments.

Increased use of biofuels for transport, without ruling
out other possible alternatives to fossil fuels, including
automotive LPG (Liquefied Petroleum Gas), is one of
the tools with which the Community can reduce its
energy dependence and influence the global
fuel
transport and hence the security of
market
energy supply in the medium and long term.

for

(8)

(9)

Biofuel production technology is highly advanced with
the result that the engines of vehicles currently in
circulation in the Community can use a 5 % biofuel
blend without any problem. The most recent tech-
nological develoments make it possible to use higher
percentages of biofuel in the blend. Some countries are
already using biofuel blends of 10 % and higher.

The research policy pursued by the Member States on
increased use of biofuels should include, wherever
technically possible and safe,
the use of biofuels
blended with kerosene, especially for air transport.

(1) COM(2001) 370.

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(10)

(11)

(12)

(13)

(14)

(615)

Captive fleets offer vast potential for research and the
gradual introduction of biofuels. They offer the possi-
bility of using a high concentration of biofuels.
In
some cities, captive fleets are already operating on
pure biofuels which help to improve air quality in
urban areas. When fuels containing more that 5 %
biofuel are put on sale, they should be clearly labelled.

Promoting the use of biofuels in transport is just one
step towards the more efficient use of biomass which
will enable biofuels, and, in particular, the hydrogen
option, to be more extensively developed in the future.

The research policy pursued by the Member States
relating to increased use of biofuels should incorporate
to a significant degree and
the hydrogen sector
promote
Sixth Framework
it
Programme of Research and Development.

as part

the

of

if

for

standards

they are

New types of
fuel must conform to recognised
to gain greater
technical
acceptance by customers and vehicle manufacturers
and hence penetrate the market. Technical standards
also form the basis
requirements concerning
emissions and the monitoring of emissions. New
to meet current
types of
been
technical
The
developed
should
Commission
and
monitor
develop standards so that new types of fuel can be
introduced,
performance
requirements are maintained.

fuel may find it difficult
have

standards which
for

standardisation
and

and
developments

largely
fuels.

environmental

conventional

actively

bodies

whilst

adapt

fossil

jobs

in rural

tional role of agriculture will come into play and
create
to ensure
areas.
sustainable farming practices, a set of clear environ-
mental criteria for the production of liquid biofuels
must be established.

In order

(716)

In its resolutions of 8 June1998 (1) and of 5 December
2000 the Council endorsed the Commission's Strategy
and Action Plan for Renewable Energy Sources and
requested specific measures in the biofuels sector.

(17)

(18)

(819)

(920)

The Commission Green Paper ‘Towards a European
Strategy for the Security of Energy Supply’ (2) sets
the objective of 20 % substitution of conventional
fuels by alternative fuels in the road transport sector
by the year 2020.

Alternative fuels will only be able to achieve market
penetration
and
competitive.

are widely

available

they

if

In its resolution of 18 June 1998 (3) the European
Parliament called for an increase in the market share
of biofuels to 2 % over five years through a package of
measures, including tax exemption, financial assistance
for the processing industry and the establishment of a
compulsory rate of biofuels for oil companies.

The optimum method for increasing the share of
biofuels
in the national and Community markets
resources and raw
depends on the availability of
materials, on national and Community policies to
promote biofuels and on tax arrangements.
, and
should therefore be left as far as possible to the
the oil companies and other parties
policies of
concerned.

Bioethanol and biodiesel, when used for vehicles in
pure form or as a blend, should comply with the
laid down to ensure optimum
quality standards
engine
European
Committee
should lay
down standards for the Community as a whole.

performance. Accordingly,

for Standardisation (CEN)

the

Promoting the use of biofuels in keeping with good
sustainable farming and forestry practices laid down in
the rules governing the Common Agricultural Policy
will create new opportunities for sustainable rural
development in a more market-orientated Common
Agriculture Policy geared more to the Community
market and to respect for rural life and multifunctional
agriculture. Cultivation of plants
for use in the
should be integrated into
production of biofuels
current cultivation programmes,
in accordance with
the principle of crop rotation, and should not lead
to the creation of single-crop systems. The multifunc-

(1021) National policies to promote the use of biofuels should
not lead to prohibition of the free movement of fuels
that meet the harmonised environmental specifications
as laid down in Community legislation.

(11)

However, it will be difficult to increase the proportion
of biofuel sold above a certain level without measures
to blend it in fossil fuel. Therefore, Member States
should aim at a minimum blending of 1 % of biofuel
into the mineral oil marketed in the Community. This
percentage will be adapted on the basis of the shares
obtained by biofuels among the various fuels marketed
in the Member States and based on further detailed
studies.

(1) OJ C 198, 24.6.1998, p. 1.
(2) COM(2000) 769 final.
(3) OJ C 210, 6.7.1998, p. 215.

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(22)

Promotion of the production and use of biofuels will
contribute to a reduction in energy dependency and in
emissions of greenhouse gases.
In addition, biofuels
may be used in existing motor vehicles and be sold
through the existing motor vehicle fuel distribution
system. Accordingly, no expensive investment in infra-
structure or engine redesign will be necessary.

(1223) Since the objective of the proposed action, namely the
introduction of general principles providing for a
minimum percentage of biofuels to be marketed and
distributed, cannot be sufficiently achieved by the
Member States by reason of the scale of the action,
and can therefore be better achieved at Community
level,
in
accordance with the principle of subsidiarity as set
In accordance with
out in Article 5 of the Treaty.
in that
the principle of proportionality, as set out
Article,
this Directive does not go beyond what is
necessary in order to achieve that objective.

the Community may

adopt measures,

(24)

Research and technological development in the field of
the sustainability of biofuels should be promoted.

(25)

An increase in the use of biofuels should be accom-
panied by a detailed analysis of the environmental,
economic and social
to decide
impact,
whether it is advisable to increase the proportion of
biofuels in relation to conventional fuels.

in order

(1326)

fuel market,

list of biofuels,

Provision should be made for the possibility of rapidly
the percentage of
adapting the
renewable contents, and the schedule for introducing
biofuels in the transport
to technical
progress and to the results of an environmental
impact assessment of the first stage of introduction.
In this connection, consideration should also be
given to different biofuels
like pure, cold-pressed
vegetable oil, such as rapeseed oil, which can be
produced in an environmentally friendly way, and
whose by-products also contain protein and can be
used as animal
feed. Other alternative fuels could
also be taken into account, such as automotive LPG
(Liquefied Petroleum Gas), LNG (Liquefied Natural
Gas), DME (Dimithylether) and CNG (Compressed
Natural Gas), which are already used in the transport
fuel market.

(27)

Provision should be made for rapidly developing the
quality standards for biofuels to be used in the auto-
motive sector, both as pure biofuels and as a blending
component in conventional fuels.

Although the biodegradable fraction of waste is a
useful source of biofuels, the quality standard should
take account of the possible presence of contaminants
specific
in the waste

to preclude

risk of

the

components damaging the vehicle and/or causing
higher levels of emissions.

(28)

(29)

Encouragement of the promotion of biofuels should be
consistent with security of supply and environmental
objectives and other related policy objectives, as well
as with any measures taken within each Member State.

adaptation of vehicles

Since the use of biofuels above a certain concentration
special
requires
to avoid
and safety problems, pure biofuels or
technical
blended fuels with a
concentration of biofuels
exceeding the maximum limit which can be tolerated
by existing vehicles should be clearly and visibly
labelled at the point of delivery.

(30)

The demand for biofuels in the Community and thus
in other countries could open up a new market for
innovative agricultural products.

(1431) Since the measures necessary for the implementation
of this Directive are measures of general scope within
the meaning of Article 2 of Council Decision
1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of implementing powers
conferred on the Commission (1),
they should be
adopted by use of the regulatory procedure provided
for in Article 5 of that Decision,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

This Directive sets a minimum percentage of biofuels to replace
diesel or gasoline for transport purposes in each Member State.

Article 2

For the purpose of this Directive,

1.
nitions shall apply:

the following defi-

(a) ‘biofuels’ means

liquid or gaseous

fuel

for

transport

produced from biomass;

(b) ‘biomass’ means the biodegradable fraction of products,
waste and residues from agriculture (including vegetal and
animal substances), forestry and related industries, as well
as the biodegradable fraction of industrial and municipal
waste;

(c)

‘energy content’ means the lower caloric value of a fuel.

The products listed in Part A of the Annex shall be
2.
considered biofuels. Shall be considered biofuels in particular
the products listed in Part A of the Annex.

(1) OJ L 184, 17.7.1999, p. 23.

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Article 3

1. Member States shall ensure that the minimum proportion
of biofuels sold on their markets is 2 %, calculated on the basis
of energy content, of all gasoline and diesel sold for transport
purposes on their markets by 31 December 2005 and that this
share increases, aiming towards a minimum level of blending,
in accordance with the schedule set out in Part B of the Annex.

The Member States shall submit to the Commission a
impact of the planned
the costs. The report shall

2.
detailed report on the environmental
measures and a breakdown of
cover at least the following:

(a) land use,

(b) degree of intensity of cultivation

(c) use of pesticides,

(d) protection of watercourses,

(e) energy efficiency,

(f) potential emission of greenhouse gases,

(g) combustion behaviour.

The report shall be made available to the public.

3. Member States may promote the technological devel-
opment of biofuel production and of the companies involved
in its production using financial instruments for research, the
environment and regional development.

Biofuels may be made available in any of the following

24.
forms:

(a) as pure biofuels or at high concentration in mineral oil
in accordance with specific quality standards

derivatives,
for transport applications;

(b) as biofuels blended in mineral oil derivatives taking into
account the appropriate European norms describing the
technical specifications for transport fuels (EN 228 and
EN 590);

(c) as liquids derived from biofuels, such as ETBE (ethyl-tertio-
butyl-ether), where the percentage of biofuel is specified in
the Part A of the Annex.

35. Member States shall monitor the effect of the use of
biofuels in diesel blends above 5 % by non-adapted vehicles
and shall, where
to ensure
compliance with the
relevant Community legislation on
emission standards.

take measures

appropriate,

6. Member States shall give priority to promoting the use of
biofuels in public and collective transport.

In the measures that

they take, Member States shall
7.
consider the overall environmental balance of
the various
types of biofuels and give priority to the promotion of those
biofuels with a very good environmental balance.

Article 4

1. Member States shall report to the Commission, before 1
July each year, on the measures adopted to ensure compliance
with the targets laid down in Article 3 and in Part B of the
Annex, on the total sales of transport fuel and the share of
biofuels in such sales for the preceding year. The first report
shall be submitted by 30 June 2004.

2. Member States shall
bodies about the possibilities of using biofuels.

inform consumers through public

By 31 December 2006 at the latest, and every two years
23.
thereafter, taking into account the reports referred to in Article
3(2), the Commission shall draw up an evaluation report to for
the European Parliament and to for
the Council on the
progress made in the use of biofuels in the Member States,
on the economical aspects and on the environmental impact
of the current situation and of further increasing increases in
the share of biofuels.

impact assessment

To this end, the Commission shall devise a specific environ-
mental
incorporating a comprehensive
life-cycle analysis of the use of biofuels. In that report, the
Commission shall pay particular attention to environmental
aspects, in particular variations in water quality, soil erosion,
the preservation of natural
use of
habitats,
the
changes caused by the biofuels connected with the production
of biomass.

inputs and pesticides,
flora and fauna and to the consequences of

The report may also consider the possibility of introducing a
selective tax on the various biodiesels, on the basis of environ-
mental criteria. On the basis of thise report, the Commission
will shall propose, to the European Parliament and the Council,
where appropriate, an adaptation of the system of new targets
for biofuels as laid down in Article 3 and in Part B of the
Annex, possibly by
a minimum blending
introducing
percentage.

Biodiesel end products intended for fuel and produced
4.
through esterification or
comply with
fatty acids
standards prEN 14214 of the European Committee for Stan-
dardisation on fatty acid methyl esters (FAME)
for diesel
engines.

shall

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Article 5

The Annex may be adapted to technical progress in accordance
with the procedure referred to in Article 6(2).

The schedule ofin Part B of the Annex may be adapted in
accordance with the procedure referred to in Article 6(2), on
the basis of
technologies,
technical development of biofuel
market penetration and applications in means of transport.

When the Annex is adapted pursuant to the first and second
paragraph, environmental criteria shall be set for the use of
biofuels.

On the basis of the information provided by the Member States
pursuant to Article 4(1), the Commission may exempt from the
targets laid down in Article 3 and in Part B of the Annex, those
Member States which have particular difficulties in meeting
them and which so request. Such exemptions may not
exceed two years.

As a condition of obtaining such an exemption, Member States
shall provide the Commission with an action plan demon-
strating how they will meet scheduled targets as they will
apply at the time of the expiry of the exemption. A Member
State may be granted an exemption only once.

2. Where reference is made to this paragraph, the regulatory
procedure laid down in Article 5 of Decision 1999/468/EC
shall apply, in compliance with Article 7 and Article 8 thereof.

The period provided for in Article 5(6) of Decision

3.
1999/468/EC shall be three months.

Article 7

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive by 31 December 2004 at
the latest. They shall
forthwith inform the Commission thereof.

When Member States adopt those provisions, they shall contain
a reference to this Directive or be accompanied by such
reference on the occasion of
their official publication.
Member States shall determine how such reference is to be
made.

2. Member States shall communicate to the Commission the
provisions of national
in the field
covered by this Directive.

law which they adopt

Article 8

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

Article 6

The Commission shall be assisted by the committee
1.
instituted by Article 4(2) of Council Decision 1999/21/EC
Euratom (1).

Article 9

This Directive is addressed to the Member States.

(1) OJ L 7, 13.1.1999, p. 16.

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ANNEX

A. LIST EXAMPLES OF POSSIBLE BIOFUELS AND PERCENTAGE OF RENEWABLE CONTENTS

‘Bioethanol’: ethanol produced from biomass and/or the biodegradable fraction of waste, to be used as biofuel;

‘Biodiesel’: a diesel quality liquid fuel produced from biomass, including animal fats and tallow from rendering plants or
used fried oils in compliance with the prEN 14214 standard for FAME (Fatty Acid Methyl Ester) to be used as biofuel;

‘Biogas’: a fuel gas produced by the anaerobic fermentation of biomass and/or the biodegradable fraction of waste that
can be purified to natural gas quality, to be used as biofuel;

‘Biomethanol’: methanol produced from biomass and/or the biodegradable fraction of waste, to be used as biofuel;

‘Biodimethylether’: dimethylether produced from biomass and/or the biodegradable fraction of waste, to be used as
biofuel;

‘Biooil’: a pyrolysis oil fuel produced from biomass, to be used as biofuel.

‘Biohydrogen’: hydrogen produced from biomass and/or the biodegradable fraction of waste, to be used as a biofuel.

‘BioETBE (ethyl-tertio-butyl-ether)’: ETBE produced on the basis of bioethanol.

The percentage of volume bioETBE that is calculated as biofuel is 45 %.

B. MINIMUM AMOUNT OF SOLD BIOFUEL AS A PERCENTAGE OF SOLD GASOLINE AND DIESEL

Year

2005

2006

2007

2008

2009

2010

%

2

2,75

3,5

4,25

5

5,75

Of which as a minimum in the form of
blending
(%)

—

—

—

—

1

1,75