COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on requirements relating to emission limits and type-approval for internal combustion engines for non-road mobile machinery
Date: 2014-09-25
Institutions: European Commission
Subjects: Community certification, environmental standard, motor vehicle, motor vehicle pollution, reduction of gas emissions, technical specification













EUR-Lex - 52014SC0281 - EN











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52014SC0281

COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on requirements relating to emission limits and type-approval for internal combustion engines for non-road mobile machinery /* SWD/2014/0281 final */









COMMISSION STAFF WORKING DOCUMENT
EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT
Accompanying the document
Proposal for a REGULATION OF THE
EUROPEAN PARLIAMENT AND OF THE COUNCIL on requirements relating to emission
limits and type-approval for internal combustion engines for non-road mobile
machinery
Disclaimer:
This executive summary commits only the Commission's services involved in its
preparation and does not prejudge the final form of any decision to be taken by
the Commission.
1.           Problem  Definition
Air pollution
Combustion engines installed in NRMM are a significant
source of air pollution and this is the main problem that the Directive itself
and the current review seek to address. At present, many EU Member States
struggle to reach their air quality objectives and a further reduction of
emissions from combustion engines is an important issue in this context.
Despite the limits set by the NRMM Directive and its subsequent amendments, the
NRMM sector has become an increasingly important source of air pollution
in relative terms, especially of nitrogen oxides (NOx) and particulate matter
(PM). The NRMM sector is responsible for around 15% of the total NOx emissions
and 5% of the total PM emission in the EU. While the PM share is expected to
decrease, the NOx share is expected to increase up to nearly 20% in 2020. 
The most stringent emission stage IV
requirements foreseen in the current legislation will enter into force in 2014.
It now appears necessary to ensure that the NRMM sector is put on a long-term
emission reduction trajectory that is aligned to the EU's overall air
quality policy and regulatory requirements in adjacent sectors. 
Due to the strong export orientation of the
engine and machinery manufactures based in the EU, it is also of major importance
that emission requirements, where relevant, are developed with a view to the
corresponding requirements in the main third-country markets such as the
  United States. 
Providing more long-term guidance on emission
requirements than is currently the case would also give more planning
certainty to industry and enable the sector to schedule the necessary
investments in research and development. 
Regulatory shortcomings
Despite past efforts, the legislation in its
current form has specific shortcomings. Not all categories of NRMM engines
are covered. The fact that these engines are currently unregulated means
that important environmental benefits are foregone.
There is also a risk of market distortion
for some machinery where the producer has some choice whether to install an
engine covered by the Directive or a presently unregulated one. In particular a
switch from CI to SI engines could be encouraged by the present regulatory situation
depending on the circumstances and fuel availability. These findings have been
confirmed by the feedback received from stakeholders during the open public
consultation.
New emission stages were last introduced when
the Directive was amended in 2004. This means that emission requirements for
certain engine categories are becoming outdated when compared to the state
of the art of technology and recent developments in the road sector. 
Furthermore, conclusive evidence became
available in the meantime about the adverse health effects of diesel exhaust
emissions and especially about particulate matter (i.e. diesel soot). One
of the main findings is that the size of the particles is a crucial factor
behind the observed health effects and this can only be addressed by limit
values that are based on a particle number count (i.e. PN limit). Experts
concluded that even the most ambitious levels defined by Stage IV do not
guarantee adequate protection from such pollutants. In line with the
developments in the road sector, the introduction of a new emission stage
(Stage V) targeting particle number limits in addition to particle mass limits,
therefore, needs to be considered for the most relevant engine categories. 
Furthermore, there is a mismatch between
certain engines categories as to the stringency of the currently applicable
emission limits. In particular, the emission limits for engines installed in
inland waterway vessels appear to be insufficiently ambitious and require
reassessment. It also holds for exhaust emissions from constant speed engines,
which represent a large part of non-road engines: the emission limits for these
engines are less stringent than for variable speed engines, which may encourage
manufacturers to move from variable speed engines to constant speed engines
with lower environmental standards. This situation needs to be reviewed as
there is no technical justification for assigning less stringent limit values
to constant speed engines.
Currently, the emission limits for NRMM are
being tested under laboratory conditions when the engine is type approved.
Whilst the Directive does require the emissions control system to correctly
function under real-world conditions, it does not contain any provision to
check that a properly maintained emissions control system is indeed functioning
correctly when in service. It may be useful to provide measures and check
whether engine emissions in-service are fulfilling the requirements set by
the Directive over the prescribed useful engine life, as this is already the
case for heavy duty road vehicles.
2.           Analysis of subsidiarity
The legal basis of the NRMM Directive 97/68/EC
is Article 114 of the Treaty on the Functioning of the European Union. 
As this concerns amendments to existing EU
legislation, only the EU can effectively address the issues. The subsidiarity
principle is respected, since the policy objectives cannot be sufficiently
achieved by actions of the Member States. European Union action is necessary
because of the need to avoid the emergence of barriers to the single market
notably in the field of NRMM engines, and because of the transnational nature
of air pollution. Even though the effects of the main air pollutants are most
severe close to the source, the effects on air quality are not limited to the
local level and cross-border pollution is a serious environmental problem that can
make national solutions ineffective. In order to solve the problem of air
pollution, concerted action at the EU scale is required.
Setting up emission limits and type approval
procedures at national level would potentially result in a patchwork of 28
different regimes which would represent a serious obstacle to intra-Union
trade. Moreover, it could impose a significant administrative and financial
burden on manufacturers who are active in more than one market. Therefore, the
objectives of the initiative under consideration cannot be achieved without
action at the EU level.
Finally, a harmonised approach at EU level is
expected to represent the most cost-efficient way for manufacturers and
end-users to achieve emission reductions.
3.           Objectives
The primary objective of the NRMM Directive is
to reduce the emission of gaseous and particulate emissions (NOx, HC, PM, CO)
from the engines incorporated in non-road mobile machinery. This is also the
central objective of the review process. 
Greenhouse gas (GHG) emissions are currently
not included in the scope of the NRMM Directive. This is mainly due to the fact
that the Directive targets at the emission performance of engines rather than
of the machinery in which the engines are installed. Given that the GHG
emission performance is, however, to a great extent influenced by the machinery
(e.g. weight, design,…) as well as its actual operation, the most appropriate
legislative way as to how best address GHG emissions is still to be sought.  
For the considerations of the current review process, GHG emissions, therefore,
remain out of scope. 
The specific objectives pursued are as follows:

Health and environment: 
·        
Protect human health and the environment through
a further reduction of toxic air pollutant emissions (NOx, HC, PM, CO) from
NRMM engines, in line with the EU's air quality policy;
·        
Ensure that NRMM emission limits and type
approval requirements reflect technical progress and address the regulatory
shortcomings that have been identified
Competitiveness:

·        
Ensure a good functioning of the internal market,
notably by reducing obstacles to internal and external trade. 
·        
Provide a reliable, long-term regulatory outlook
for the relevant economic sectors. 
·        
Prevent regulatory fragmentation by reducing the
pressure on Member States and other public authorities to impose restrictions on
the use of NRMM. 
·        
Promote technical progress by providing long
term guidance on emission limits
·        
Increase alignment with regulations established
outside of the EU market, and the United States in particular.
Compliance: 
·        
Support Member States in their efforts to comply
with the requirements of EU air quality policy by providing them with a supportive
regulatory environment;
·        
Support Member States, regions and cities in addressing
compliance problems in the so-called urban hotspots, where air quality problems
have proven to be most difficult to address.
4.           Policy Options
The following options were considered and
studied in more detail on the basis of cost-benefit analyses: 
Option 1: Business as usual – applying the existing
legislation (Baseline)
The NRMM Directive would continue to apply in
its current form and no new emission stage would follow on Stage IV, which
enters into force from 2014 onwards. Engine types outside of the current scope
would continue to be unregulated, unless Member States decide to act
themselves.
Option 2: Alignment with US standards in
scope and limit values
The revision would seek to achieve alignment
with US-EPA standards where feasible. As today’s US-EPA standards are generally
stricter than current EU standards, this approach would have the effect of both
extending the scope of regulated engines and introducing stricter emission
limit values. For engine categories where a meaningful correspondence between
the EU and the US limits cannot be established, or where less stringent
standards apply in the US than in the EU, notably for railcars which do not
exist as a distinct category in the US, no alignment would be sought. Instead,
an appropriate level of ambition would be applied with a view to ensuring
consistency across engine categories. It is also important to note that this
option would target particle mass limits rather than particle number limits. 
Option 3: Step towards road sector ambition
levels, for the most relevant emission sources
The Euro VI emission standard for heavy duty
vehicles (i.e. trucks and buses) would be used as the main point of orientation.
This would notably include the issue of particulate matter number limits which
currently do not exist in NRMM legislation. However, the technical and
regulatory differences between heavy duty vehicles and NRMM would be taken into
account when defining limit values. With regard to the definition of limit
values, this option is more ambitious than Option 2 and would seek a coherent
and comparable reduction across the most relevant engine categories. It would
allow for some limited differentiation among the different power classes in
accordance with the results of cost-benefit analyses.
As for engines for the IWV transport sector,
two options are studied: Option 3A being inspired by alignment with future US standards on NOx and HC yet introducing PN emission limits, Option 3B setting in
addition also very ambitious emission reduction targets for NOx and HC. In a
similar manner, two options are being studied for rail applications, i.e. the
introduction of PN emission limits only (Option 3A) respectively PN emission
limits in combination with more stringent NOx/HC limits (Option 3B). 
Option 4: Extended level of ambition through
enhanced monitoring provisions
Under this option, the revision would seek to
combine the more stringent emission limits resulting from Option 2 and/or
Option 3 with enhanced monitoring provisions.
These provisions would mainly be aimed at
monitoring the in-service conformity of NRMM engines. In-service conformity
means compliance of the engine with the type approval requirements during the
product’s ‘normal life’. For this reason, legislation has been developed in the
heavy duty sector which is aimed at monitoring, via limited sampling, the
emission performance of engines once installed in vehicles and in service life.
Similar procedures would be introduced for the non-road sector. This could also
serve as a first step towards controlling real world (so-called off-cycle)
emissions. 
Furthermore, with a view to obtaining a more
accurate picture of the specific greenhouse gas emissions and fuel consumption
of NRMM engines, information on these emissions could be used to label engines
to better inform buyers and users. If deemed necessary at a later point of
time, the results from the monitoring and reporting of the specific greenhouse
gas engine emissions could possibly be used for further measures in the future.
5.           Assessment of Impacts
Due to the considerable diversity of engines
and applications in the NRMM sector, the preferred option is a combination of
elements cutting across all four policy options studied. The preferred options
identified will lead to a significant reduction of pollutant emissions which
have adverse effects on human health. A focus is on the reduction of diesel
particle emissions. In addition, substantial reductions in NOx and HC emissions
will be achieved. 
All together, the benefits of the preferred
options are expected to reach amounts in the range of € 26,100 to 33,300
million until 2040. 
Costs of the preferred option will mainly incur
to engine and machinery manufacturers (development, redesign and production
costs), but also to end-users of machinery (operational costs for additional
fuel consumption, maintenance costs). 
All together, the costs of the preferred
options are expected to reach amounts in the range of € 5,200 to 5,800 million
until 2040. 
Though the cost-benefit analyses indicate
overall net benefits, it must be highlighted that investment needs reach
significant levels for some of the engine categories and/or sectors that need
to be carefully assessed with the financing capabilities of the main players
affected. Most significant investment costs are identified for
sectors/categories which benefit as of today, in relative terms, of lower
emission standards, i.e. small diesel engines (19-37 kW) and engines used in
the IWT sector. 
6.           Comparison of Options
Assuming that all the criteria for comparison
are given similar weight, Option 2 (US alignment) is the preferred choice for
all SI engines and the smallest and largest CI engines. Option 3 (closer
alignment with road sector ambition level) would apply to the CI engines in the
middle of the power spectrum, where the bulk of CI engines is located. Option 3
would also be appropriate for railcars. Here the analysis points to sub-option
3A. Option 1 (no policy change) only leads to a satisfactory outcome for the
engines of diesel locomotives, a segment of the NRMM engine market that will
have all but disappeared by 2050. 
For inland waterway vessels (IWV), the analysis
reveals merits and drawbacks for Option 2 and Options 3A and 3B, which does not
allow an easy straightforward selection. Considering, however, that Option 2
does not address an issue of high relevance for the EU (i.e. adverse health
impact due to particle sizes), only Option 3A and Option 3B are being retained
at this stage as preferred options.
Finally, the analysis indicates that the
enhancement measures of Option 4 should be applied across the board. 
Due to a considerable diversity of engines and
applications in the NRMM sector, it was already expected that the preferred
option would, in fact, be a combination of elements cutting across all four
policy options. This result is also due to the fact that NRMM engine categories
differ widely as to their expected future importance as a source of emissions,
the technical feasibility of further emission reductions and the level or
regulatory stringency that is already applied to them. The preferred
combination would ensure that these circumstances are duly reflected in NRMM
engine emission legislation in the future and, at the same time, would
strengthen the effectiveness and coherence of the regulatory framework.
7.           Monitoring and Evaluation
The European Commission has several tools
available to monitor if the objectives of the initiative under consideration are
being achieved effectively. The most important one is market surveillance by
the relevant authorities of the Member States. Non-compliance will also be
spotted as a result of complaints addressed to the Commission. The emission
data generated by the engine type approval procedure is also valuable for
monitoring and evaluation purposes. In particular, if the database described in
section 6.4.3 is set up. 
A technical review of the NRMM legislation was
carried out in 2008, which triggered the development of the current initiative.
Such a review could be repeated a number of years after the entry into force of
the revised NRMM legislation once sufficient evidence for the effects of the
current initiative can be expected. This could be the case 5 years after the
entry into force of new emission requirements.