Proposal for a Directive of the European Parliament and of the Council on Stage II petrol vapour recovery during refuelling of passenger cars at service stations {SEC(2008) 2937} {SEC(2008) 2938}
Date: 2008-12-04
Institutions: European Commission
Subjects: atmospheric pollutant, diesel fuel, environmental protection, motor fuel, motor vehicle, ozone, petrol, substitute fuel, supply

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.12.2008 
COM(2008) 812 final 

2008/0229 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

on Stage II petrol vapour recovery during refuelling of passenger cars at service stations 

{SEC(2008) 2937} 
{SEC(2008) 2938} 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

1.1. 

General context 

This  legislative  proposal  aims  at  recovering  petrol  vapour  which  is  emitted  to  the 
atmosphere  during  the  refuelling  of  passenger  cars  at  service  stations  (so  called 
"Stage  II  Petrol  Vapour  Recovery  or  PVR").  The  emissions  of  volatile  organic 
compounds contained in petrol contribute to local and regional air quality problems 
(benzene and ozone) for which Community air quality standards and objectives exist. 
Ground level ozone is a pollutant which crosses national borders and is also the third 
most important greenhouse gas. Benzene is a known human carcinogen. 

The proposal has been prepared following commitments made by the College in: 

–  the Thematic Strategy on Air Pollution1;  

–  the  Commission's  proposal  to  amend  Directive  98/70/EC  on  petrol  and  diesel 
quality2  which  aims  to  facilitate  a  greater  uptake  of  biofuels  and  bioethanol  in 
particular  by  relaxing 
the  vapour  pressure  requirements  of  petrol.  The 
Commission  recognised  that  this  could  lead  to  greater  emissions  of  volatile 
organic compounds and indicated that Stage II PVR would be proposed to offset 
any increased emissions. 

–  a  statement  accompanying  a  new  directive  on  ambient  air  quality3  in  which  the 
Commission recognised the importance of tackling air pollution at source in order 
to  attain  air  quality  objectives  and  which  proposed  several  new  Community 
source-based measures including Stage II PVR. 

1.2. 

Existing provisions in the area of the proposal 

Directive  94/63/EC  aims  to  recover  petrol  vapour  otherwise  emitted  to  the 
atmosphere from the storage and distribution of petrol between terminals and service 
stations  (so  called  "Stage  I  petrol  vapour  recovery").  The  petrol  vapour  displaced 
when a service station receives a new delivery of petrol is returned to the road tanker 
or mobile vessel and returned to the terminal where it can be redistributed. 

1.3. 

Consistency with other policies and objectives of the Union 

The  proposal  is  consistent  with  the  Community's  policies  on  air  quality  and  the 
making  further  progress  towards  the  attainment  of  levels  of  air  quality  that  do  not 
give  rise  to  significant  impacts  on  health  and  the  environment  as  stipulated  in  the 
Community's  Sixth  Environmental  Action  Programme.  The  proposal  is  also  in  line 
with the three pillars of the Lisbon Strategy as this will encourage a greater demand 
and development of Stage II vapour recovery technologies. 

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Section 4.2.1.2 on page 9 of COM(2005) 446 of 21 September 2005. 
Section 3(4) on pages 7 & 8 of COM(2007) 18 of 31 January 2007. 
Directive 2008/50/EC on ambient air quality and cleaner air for Europe, OJ L152, 11.6.2008, p. 1 – 43. 

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2. 

CONSULTATION OF INTERESTED PARTIES 

2.1. 

Consultation of interested parties 

2.1.1.  Consultation methods, main sectors targeted and general profile of respondents 

A  targeted  consultation  of  key  stakeholders  took  place  by  direct  contact.  These 
included,  oil  industry  associations,  Stage  II  PVR  equipment  manufacturers, 
environmental/transport  NGOs,  independent  service  station  operators  and  motoring 
organisations amongst others. In addition, questions were also posted on the internet 
for the general public. 

2.1.2. 

Summary of responses and how they have been taken into account 

The  responses  spanned  issues  on  health  impacts  of  petrol  vapour,  the  efficiency  of 
Stage  II  equipment,  the  merits  of  automatic  monitoring  equipment  and  the  cost 
effectiveness  of  the  various  options  for  installing  stage  II  PVR  equipment.  These 
responses have been taken directly into account in drafting the key elements of the 
attached  proposal  notably 
to  service  stations  under  residential 
accommodation,  the  lower  cut-off  for  affected  service  stations  and  the  automatic 
monitoring of in-service performance of equipment. 

in  relation 

summary 

A 
http://ec.europa.eu/environment/air/transport/petrol.htm  

questions 

responses 

and 

the 

of 

can 

be 

found 

at: 

2.2. 

Collection and use of expertise 

2.2.1. 

Scientific/expertise domains concerned 

Expertise from the oil industry and Stage II PVR equipment manufacturers and from 
consultants who prepared estimates of the costs and benefits of options for Stage II 
PVR controls. 

2.2.2.  Methodology used 

Statistical data on numbers and sizes of service stations coupled with cost estimates 
of  Stage  II  equipment  was  used  to  calculate  the  overall  costs  of  applying  Stage  II 
PVR controls over time as well as the amount of petrol vapour abated. The damage 
costs  of  the  emitted  petrol  vapour  were  monetised  using  a  simple  average  damage 
cost  function  based  upon  the  impacts  associated  with  ground  level  ozone.  Impacts 
due to benzene were not quantified. 

2.2.3.  Main organisations consulted 

European  oil 
II  PVR  equipment 
manufacturers, environmental/transport NGOs, independent service station operators 
and motoring organisations. 

industry  associations,  European  Stage 

2.2.4. 

Summary of advice received and used 

Two  separate  consultants  were  asked  to  provide  advice  to  the  Commission  on  the 
costs  and  cost  effectiveness  of  various  Stage  II  PVR  options.  This  information  is 

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summarised in two separate reports from 2005 and 2008. The latter report also relied 
upon recent information associated with the implementation of Stage II PVR in the 
Member States 

2.2.5.  Means to make advice available to the public 

Both 
http://ec.europa.eu/environment/air/transport/petrol.htm  

available 

reports 

the 

are 

on 

Commission's  web 

site: 

2.3. 

Impact assessment 

The impact assessment looked at the costs and benefits of the following options: 

(1) 

Do nothing. 

(2) 

Install Onboard Refuelling Vapour Recovery (ORVR) in passenger cars and 
light commercial vehicles. 

(3) 

Install PVR Stage II equipment at  

(a) 

(b) 

(c) 

(d) 

All  new  and  substantially  refurbished  service  stations  with  a 
throughput greater than 500 m3 of petrol per annum. 

At  all  new  and  substantially  refurbished  service  stations  with  a 
throughput greater than 500 m3 of petrol per annum and larger existing 
stations (i.e. with a throughput in excess of 3000 m3 per annum).. 

Option  (b)  and  service  stations  situated  in  or  under  residential 
accommodation. 

Option  (c)  with  automatic  monitoring  of  all  stage  II  equipment  that 
would  restrict  petrol  sales  if  the  equipment  is  not  functioning 
correctly. 

The  detailed  evaluation  of  the  options  is  included  in  the  Impact  Assessment 
accompanying  this  proposal.  It  will  be  available  at  the  following  web  site: 
http://ec.europa.eu/environment/air/transport/petrol.htm  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Summary of the proposed action 

The  proposal  would  oblige  the  installation  of  Stage  II  petrol  vapour  recovery 
equipment (i) at new and refurbished stations above 500m3 throughput per annum of 
petrol; (ii) require retrofitting of existing stations with a throughput above 3000 m3 
by 2020; and (iii) require all new or substantially refurbished stations situated under 
residential accommodation to equip with Stage II controls irrespective of size; (iv) no 
obligation  to  install  automatic  monitoring  of  Stage  II  PVR  equipment  but  permit  a 
longer period between inspections if it is installed.  

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It is clear that obliging the larger existing stations to install Stage II controls before 
2020  imposes  additional  costs  but  also  delivers  substantially  greater  emissions 
reductions  albeit  with  a  slightly  worse  cost-effectiveness.  However,  the  costs  are 
relatively modest for both options and of the order of €20-30 million per annum in 
2020.  

Whilst it is not possible to calculate directly the costs associated with installing Stage 
II  PVR  at  all  stations  situated  under  residential  accommodation,  the  illustrative 
calculation  shows  that  the  costs  of  a  scheduled  retrofit  of  a  small  service  station 
would be similar to the average for the other options considered. However, the costs 
of an unscheduled retrofit are substantially higher and do not justify the imposition of 
a time limit. However, in the 10 years following adoption of any new Directive on 
Stage  II  PVR,  over  two  thirds  of  such  stations  would  have  been  expected  to  have 
undergone  a  scheduled  refurbishment.  The  proposal  would  also  maximise  the  fact 
that service stations sited under residential accommodation must already install Stage 
I PVR irrespective of their size. 

Whilst automatic monitoring would certainly guarantee the delivery of the intended 
benefits in practice, there is uncertainty over the costs of such systems and whether 
there are not simpler and cheaper systems that can deliver as well. This conclusion 
was supported by the findings of ENTEC report which determined a 50% worsening 
in cost-effectiveness for the mandatory inclusion of automatic monitoring4. However, 
there should be less need for periodic inspection which would represent a cost saving 
for those installing automatic monitoring equipment. 

3.2. 

Legal basis 

Article 175 of the Treaty is the appropriate legal basis given the clear environmental 
nature of the proposal. 

3.3. 

Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  within  the 
exclusive  competence  of  the  Community.  The  objectives  of  the  proposal  cannot  be 
sufficiently achieved by the Member States alone for the following reasons: 

–  Ground  level  ozone  is  a  transboundary  air  pollutant  formed  in  situ  in  the 
atmosphere  from  precursor  emissions  of  volatile  organic  compounds  (e.g.  petrol 
vapour) and nitrogen oxides. Emissions of petrol vapour in one country can lead 
to air quality problems in neighbouring countries. Coherent action by all Member 
States is therefore required in tackling ground level ozone. 

–  The directive governing the quality of petrol and diesel sold in the EU has Article 
95  of  the  Treaty  as  its  legal  basis  and  applies  uniformly  across  the  EU.  The 
Commission  has  proposed  a  relaxation  of  the  vapour  pressure  requirements  of 
petrol in order to promote a greater use of bioethanol. This could however lead to 
greater  emissions  of  volatile  organic  compounds  even  in  those  countries  where 
Stage  II  PVR  controls  are  already  implemented.  As  such,  Community  action  is 
required to address this potential increase in VOC emissions. 

4 

Table 6.24, p. 55 of the ENTEC report prepared for the Commission (May 2005). 

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3.4. 

Proportionality principle 

The proposal does not go beyond what is necessary in order to achieve the objective 
of ensuring the reduction of petrol vapour emissions from refuelling activities. Only 
the minimum technical parameters are specified whilst leaving the detailed choice of 
technologies and means to the discretion of the Member States. 

3.5. 

Choice of instrument 

A proposal for a directive is most appropriate. There are several technological ways 
in  which  Stage  II  PVR  can  be  implemented  in  practice.  In  addition,  a  substantial 
number  of  Member  States  already  have  national  legislation  for  Stage  II  PVR  in 
place.  There  is  no  need  to  change  the  approach  taken  by  these  Member  States 
although  numerical  values  for  one  or  more  technical  parameters  may  need  to  be 
revised. As such, a directive would maximise the discretion of the Member States on 
how best to implement the proposal, whilst also leaving the possibility for Member 
States to impose stricter controls in the event that these are needed in response to air 
quality problems. 

4. 

BUDGETARY IMPLICATION 

There are no implications for the Community budget. 

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2008/0229 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

on Stage II petrol vapour recovery during refuelling of passenger cars at service stations 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission5, 

Having regard to the opinion of the European Economic and Social Committee6, 

Having regard to the opinion of the Committee of the Regions7, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty8, 

Whereas: 

(1) 

(2) 

Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 
2002  laying  down  the  Sixth  Community  Environmental  Action  Programme9 
established the need to reduce air pollution to levels which minimise harmful effects 
on human health and the environment.  

Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 
on ambient air quality and cleaner air for Europe10 lays down air quality objectives for 
ground level ozone and benzene and Directive 2001/81/EC of the European Parliament 
and  of  the  Council  of  23  October  200111  lays  down  national  emission  ceilings  for 
volatile organic compounds which contribute to the formation of ground level ozone. 
Whereas the emissions of volatile organic compounds, including petrol vapour, in one 
Member State contribute to air quality problems in other Member States. 

(3) 

Directive 94/63/EC of 20 December 1994 on the control of volatile organic compound 
(VOC)  emissions  resulting  from  the  storage  of  petrol  and  its  distribution  from 
terminals to service stations12 (Stage I petrol vapour recovery) aims to recover petrol 

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12 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 242, 10.9.2002, p. 1. 
OJ L 152, 11.6.2008, p. 1. 
OJ L 309, 27.11.2001, p. 22. 
OJ L 365, 31.12.1994, p. 24. 

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vapour  emitted  from  the  storage  and  distribution  of  petrol  between  oil  terminals  and 
service stations.  

Petrol vapour is also emitted during the refuelling of passenger cars at service stations 
and  should  be  recovered  in  a  manner  consistent  with  the  provisions  of  Directive 
94/63/EC. 

Existing service stations may need to adapt existing infrastructure and it is preferable 
to install vapour recovery equipment when they undergo major refurbishment so as to 
reduce  costs,  however,  larger  existing  stations  are  better  able  to  adapt  and  should 
install  petrol  vapour  recovery  earlier  given  they  make  a  greater  contribution  to 
emissions. New service stations can integrate petrol vapour recovery equipment during 
the  design  and  construction  of  the  service  station  and  can  therefore  install  petrol 
vapour recovery equipment immediately. 

It  is  appropriate  to  establish  a  uniform  minimum  level  of  petrol  vapour  recovery  in 
order to deliver a high level of environmental benefit and to facilitate trade in petrol 
vapour recovery equipment. 

Periodic inspections of all installed stage II petrol vapour recovery equipment should 
be  performed  in  order  to  ensure  that  petrol  vapour  recovery  equipment  delivers  real 
emissions reductions. 

(4) 

(5) 

(6) 

(7) 

(8)  Member States should lay down rules on penalties applicable to infringements of the 
provisions  of  this  Directive  and  ensure  that  they  are  implemented.  The  penalties 
should be effective, proportionate and dissuasive. 

(9) 

Due  to  the  transboundary  nature  of  air  pollution,  the  objectives  of  the  action  to  be 
taken  to  reduce  emissions  of  petrol  vapour  to  the  atmosphere  cannot  be  sufficiently 
achieved  by  the  Member  States  but  can  be  better  achieved  at  Community  level. 
Accordingly, the Community may adopt measures in accordance with the principle of 
subsidiarity as  set out in  Article 5 of the Treaty. In accordance  with the  principle of 
proportionality  as  set  out  in  that  Article,  this  Directive  does  not  go  beyond  what  is 
necessary in order to achieve those objectives. 

HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Subject matter 

This Directive lays down measures aimed at reducing the amount of petrol vapour emitted to 
the atmosphere during the refuelling of motor vehicles at service stations. 

For the purposes of this Directive: 

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Article 2 

Definitions 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

1. 

2. 

'petrol' means petrol as defined in Article 2(1) of Directive 98/70/EC of the European 
Parliament and of the Council13; 

'petrol vapour' means any gaseous compound which evaporates from petrol; 

'service  station'  means  a  service  station  as  defined  in  Article  2(f)  of  Directive 
94/63/EC; 

'existing  service  station'  means  a  service  station  which  is  built  or  for  which  an 
individual  planning  permission,  construction  licence  or  operating  licence  is  granted 
before the date referred to in the second subparagraph of Article 7(1); 

'new service station' means a service station which is built or for which an individual 
planning  permission,  construction  licence  or  operating  licence  is  granted  after  the 
date referred to in the second subparagraph of Article 7(1).  

'Stage  II  petrol  vapour  recovery  system'  means  equipment  aimed  at  recovering  the 
petrol vapour displaced from the fuel tank of a motor vehicle during refuelling at a 
service station and which transfers that petrol vapour to an underground storage tank 
at the service station or back to the petrol dispenser for resale; 

'hydrocarbon capture efficiency' means the fraction of petrol vapour captured by the 
Stage II petrol vapour recovery system compared to the amount of petrol vapour that 
would otherwise be emitted to the atmosphere in the absence of such a system and 
expressed as a percentage; 

'vapour/petrol ratio' means the ratio between the volume at atmospheric pressure of 
petrol  vapour  passing  through  the  Stage  II  petrol  vapour  recovery  system  and  the 
volume of petrol dispensed; 

'throughput'  means  the  total  annual  quantity  of  petrol  unloaded  from  mobile 
containers into a service station; 

Article 3 

Service stations 

Member  States  shall  ensure  that  any  new  service  station  shall  be  equipped  with  a 
Stage II petrol vapour recovery system if its actual or intended throughput is greater 
than 500 m3 per annum. However, all new service stations situated under permanent 
living  quarters  or  working  areas  shall  be  equipped  with  a  Stage  II  petrol  vapour 
recovery system irrespective of their actual or intended throughput. 

Member  States  shall  ensure  that  any  existing  service  station  with  a  throughput 
greater  than  500 m3  per  annum  which  undergoes  a  major  refurbishment  shall  be 
equipped  with  a  Stage  II  petrol  vapour  recovery  system  at  the  time  of  the 
refurbishment.  

13 

OJ L 350, 28.12.1998, p. 58. 

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3. 

1. 

2. 

1. 

2. 

Member  States  shall  ensure  that  an  existing  service  station  with  a  throughput  in 
excess  of  3000  m3  per  annum  shall  be  equipped  with  a  Stage  II  petrol  vapour 
recovery system by no later than 31 December 2020.  

Article 4 

Minimum permitted level of petrol vapour recovery 

Member  States  shall  ensure  that  the  hydrocarbon  capture  efficiency  of  a  Stage  II 
petrol vapour recovery system is equal to or greater than 85%. 

For  Stage  II  petrol  vapour  recovery  systems  where  the  recovered  petrol  vapour  is 
transferred  to  an  underground  storage  tank  at  the  service  station,  the  vapour/petrol 
ratio shall be equal to or greater than 0,95 but less than or equal to 1,05. 

Article 5 

Periodic inspection and compliance 

Member States shall ensure that the hydrocarbon capture efficiency is tested at least 
once per annum. 

Where an automatic monitoring system has been installed, the Member States shall 
ensure  that  the  hydrocarbon  capture  efficiency  is  tested  at  least  once  every  three 
years.  The  automatic  monitoring  system  shall  automatically  detect  faults  in  the 
proper functioning of the Stage II petrol vapour recovery system and in the automatic 
monitoring  system  itself,  indicate  faults  to  the  service  station  operator  and 
automatically  stop  the  flow  of  petrol  from  the  faulty  dispenser  if  the  fault  is  not 
rectified within 7 days. 

Article 6 

Penalties 

Member  States  shall  lay  down  the  rules  on  penalties  applicable  to  infringements  of  the 
national provisions adopted pursuant to this Directive and shall take all measures necessary to 
ensure that they are implemented. The penalties provided for must be effective, proportionate 
and  dissuasive.  Member  States  shall  notify  those  provisions  to  the  Commission  by  the  date 
specified in the first subparagraph of Article 7(1) at the latest and shall notify it without delay 
of any subsequent amendment affecting them. 

Article 7 

Transposition 

1. 

Member  States  shall  adopt  and  publish,  by  [30  June  2012]  at  the  latest,  the  laws, 
regulations  and  administrative  provisions  necessary  to  comply  with  this  Directive. 
They  shall  forthwith  communicate  to  the  Commission  the  text  of  those  provisions 
and a correlation table between those provisions and this Directive. 

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Member States shall apply those provisions from [1 July 2012]. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  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 text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

Article 8 

Entry into force 

This Directive shall enter into force on the day of its publication in the Official Journal of the 
European Union. 

Article 9 

This Directive is addressed to the Member States. 

Done at Brussels, […] 

For the European Parliament 
The President 
[…] 

For the Council 
The President 
[…] 

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