CELEX: 52011PC0439
Language: en
Date: 2011-07-15
Title: Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 1999/32/EC as regards the sulphur content of marine fuels

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		52011PC0439
		
			Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 1999/32/EC as regards the sulphur content of marine fuels /* COM/2011/0439 final - 2011/0190 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
General context
Promoting a more resource efficient,
greener and more competitive economy is at the heart of
Europe 2020 strategy[1].
In this context further reduction of air pollution is important to improve
human health and the environment and contributes to the attainment of more
sustainable Europe. The EU actions over the past decades have resulted in a
considerable reduction of emissions of most air pollutants, including sulphur
dioxide (SO2), nitrogen oxides (NOx), volatile organic compounds,
ammonia and particulate matter (PM). The greatest share of these reductions has
been achieved by land-based emission sources such as industrial plants or road
transport. Evidence shows that further reduction of such pollutants will
deliver significant benefits to the health of EU citizens, the environment, and
the economy at large. 
Historically, less attention was given to
address maritime emission sources compared to land-based sources. However, as
maritime emissions of air pollutants can travel large distances they have an
impact on land. Projections made in 2005 showed that without further regulatory
action the continued growth in emissions of SO2 and NOx from the
maritime sector will surpass total emissions of these pollutants from all
land-based sources by 2020.[2]

Grounds for and objectives of the
proposal
The sulphur content of a liquid fuel
essentially determines the SO2 emissions related to the combustion
of that fuel, as well as the formation of (secondary) particular matter (PM).
Directive 1999/32/EC as amended regulates the sulphur content of fuels used by
maritime transport and incorporates certain rules, agreed under the
International Maritime Organisation (IMO), into EU law. In particular, the
Directive incorporates more stringent rules on sulphur content of marine fuels
to be used in areas in need of special environmental protection, the Sulphur
Emission Control Areas[3]
(SECAs). 
Since the amendment of the Directive in
2005, and with strong EU support, IMO rules, among others in relation to SO2,
were revised in October 2008. These rules are contained in Annex VI of the
Marine Pollution Convention 73/78 (Revised MARPOL Annex VI)[4]. Already at the time of the
adoption of Directive's 2005 amendment the EU's co-legislators, expecting the
need for further reduction of shipping emissions, called upon the Commission to
review the legal requirements related to the sulphur content of liquid fuels. 
Consistency with other policies and
objectives of the Union
This proposal is consistent with Article
191 of the Treaty on the Functioning of the European Union (TFEU) and aims to
provide a high level of protection for human health and the environment. It is
furthermore consistent with the EU 2020 Strategy and its associated flagship
initiatives, notably those relating to the low carbon society roadmaps and
innovation union, as well as existing EU policies for sustainable transport. 
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENT
Public
consultation
In preparation of this amendment the
Commission conducted an online consultation open to all interested parties (including
organisations, Member States, NGOs, general public) during the period of 29
October 2010 to 5 January 2011. Stakeholders were requested to express their
views on the possible incorporation of the latest relevant IMO's rules into EU
legislation. In addition to the public consultation, the Commission also
regularly consulted Member States' representatives and other stakeholders. 
The public consultation yielded 244 responses from various
organisations. The important contribution of the revised Annex VI of MARPOL to
improving air quality in the EU has been widely acknowledged by all
stakeholders. In the view of most respondents the EU
provisions on the abatement technologies should be aligned with the revised
Annex VI of MARPOL. The broad
range of abatement technologies should in their view be allowed, while ensuring
appropriate safeguards for the environment. Respondents
have also broadly agreed that strengthening and harmonising monitoring and
enforcement of the sulphur standards is an important tool that would ensure delivery of the intended environmental improvements. Some stakeholders raised concerns about
the costs of the new requirements and the potential risk of modal shifts (from short sea shipping to trucks), in particular in areas where the sulphur standards are stricter (SECAs). Others underlined the need for a prompt EU action to encourage
the industry's response and safeguard the environmental benefits of the revised
Annex VI of MARPOL.
More detailed information on the results of
the public consultation is presented in the Impact Assessment accompanying this
proposal[5].
External
expertise and public information
Several studies were conducted in support
of the preparatory work leading to the present proposal. These studies have
been made available upon completion on the Commission's webpage dedicated to EU
policies on shipping emissions: http://ec.europa.eu/environment/air/transport/ships_directive.htm.

The results of the impact assessment
The new international limit values for the
sulphur content of marine fuels are expected to significantly reduce emissions
of sulphur dioxides from the maritime sector. This will greatly contribute to
achieving the general environmental objectives stated in the 2005 Thematic
Strategy on Air Pollution as well as the specific objectives stated in the
Directive. It will furthermore yield important ancillary benefits in terms of
reducing emissions of particulate matter and NOx (an important precursor of
ground-level ozone). It is essential to ensure that these projected benefits
materialise, not least for the purpose of promoting compliance with existing
ambient air quality limit values. 
The impact assessment confirms the
cost-effectiveness of the full alignment of the Directive with the IMO stricter
fuel standards and the rules on emission abatement methods. According to its
findings the MARPOL Annex VI 2008 revision offers an estimated €15 to €34
billion in benefits to the EU in improved health and reduced mortality. The
costs of implementing the revision range from €2.6 to €11 billion. As such the
revision offers benefits that are three to thirteen times greater than the
costs.
In addition to the alignment of the
Directive with IMO rules, the impact assessment recommends maintaining the link
between the stricter fuel standards in SECAs and those applying for passenger
ships on a regular service outside SECAs. However, the introduction of a new
SECA standard for passenger ships would be delayed by 5 years in order to avoid
potential problems with fuel availability. The benefit to cost ratios for this
option range from 1.5 to 6 (if the 0.1% standard is introduced in 2020) and
from 0.8 to 10 (if the 0.1% standard is introduced in 2025). 
Furthermore, the impact assessment analysed
the issues identified during the review of the Directive. In particular, it
showed that certain weaknesses exist in the enforcement provisions of the
Directive (in particular on sampling and reporting). The impact assessment
suggests to first develop guidance on monitoring and implementation of the
Directive and, should this approach fail, to consider adopting binding rules. 
Finally, the impact assessment also
recommends that the European Commission and Member States use and, where
possible and necessary, adapt existing instruments, to assist industry in the
transition towards the new best available technology standards, including those
agreed at the IMO or other relevant organisations (notably for NOx, PM, and
GHG). 
3.           LEGAL ELEMENTS OF THE
PROPOSAL
Summary of the proposed action
The purpose of this proposal is to revise Directive
99/32/EC on the sulphur content of certain liquid fuels with the aim to: 
(1) Align the Directive with the IMO rules
on fuel standards, including the standards applicable outside SECAs. 
(2) Align the Directive with the IMO rules
on the emission abatement methods.
(3) Maintain the link between the stricter
fuel standards in SECAs (now requiring maximum sulphur content of marine fuel
of 1.5% and from 2015 - 0.1%) and those applying for passenger ships on a
regular service outside SECAs (at the moment 1.5%).
(4) Strengthen EU monitoring and
enforcement regime. 
Incorporating the international fuel
standards into EU law would strengthen the effectiveness of these standards as
they would be monitored and enforced under the EU regime, which is more
effective than the international enforcement system. The proposed extended
access to and promoting the use of innovate emission abatement methods as an
equivalent compliance option addresses concerns about the cost implications
resulting from the new IMO rules for certain industries. This would
significantly lower the IMO compliance costs (by 50% to 88%) and promote
innovative industry solutions, in line with the priorities of the Europe 2020
Strategy and Article 3 of the Treaty on European Union (TEU). Furthermore,
stricter fuel standards for passenger ships on a regular service, which operate
mostly in ports or close to shore, would ensure improvement of air quality in
coastal areas. The introduction of the stricter fuel standard for passenger
ships would be delayed by 5 years in comparison with SECAs in order to avoid
potential problems with fuel availability. Finally, strengthening EU monitoring
and enforcement regime is particularly important considering that the
significantly stricter fuel standards and the associated compliance costs may
increase the incentives for circumvention. 
These actions will ensure better
implementation and enforcement of the Directive by national authorities and
easier compliance by the industry and should result in a high level of
environmental protection.
Legal basis
The primary objective of the Directive is
the protection of the environment. This proposal is therefore based on Article
192 of the TFEU.
Subsidiary principle
The right for the EU to regulate the
sulphur content of liquid fuels with significant impact on the internal market
and the environment is established in the TFEU. Article 3 TEU stipulates that 'The
Union shall establish an internal market. It shall work for the sustainable
development of Europe based on balanced economic growth and price stability, a
highly competitive social market economy, aiming at full employment and social
progress, and a high level of protection and improvement of the quality of the
environment'. Moreover, Article 191 TFEU states that 'Union policy on the
environment shall contribute to […] preserving, protecting and improving the
quality of environment, protecting human health, prudent and rational
utilisation of natural resources, promoting measures at international level to
deal with regional or worldwide environmental problems […]'.
Global dimension of shipping and a
cross-border impact of air pollution emitted from the combustion of fuels
containing sulphur require that common rules are established for all Member
States. In the absence of such rules different national standards would apply
to ships operating in EU waters. Such a legal patchwork would make the
operation of a shipping industry in the EU very complicated and costly, hence
distorting internal market. 
Only a harmonised action at EU level, with
its strengthened monitoring and enforcement regime, would ensure an effective
implementation and application of the international fuel standards across
Member States.[6]

Detailed explanation of the proposal
Article 1
This Article details each of the proposed
amendments to Directive 1999/32/EC.
(1)              
Article 2 of Directive 1999/32/EC is amended to
adapt the definitions of marine diesel oil and marine gas oil to the latest ISO
standard and to extend the definition of emission abatement method and align it
with the definition of equivalents in Regulation 4 of the revised Annex VI of
MARPOL.
(2)              
Article 3 is amended to revise the provisions on
maximum sulphur content of heavy fuel oil following the adoption of Directive
2010/75 of the European Parliament and of the Council of 24 November 2010 on
industrial emissions (integrated pollution prevention and control)[7], which recasts the European
legislation on industrial emissions.
(3)              
Article 3a is added to ensure that marine fuels
are not used or placed on the market in Member States if their sulphur content
exceeds the general standard of 3.5 % by mass. In particular, this provision
addresses the risk that the possibility to use heavy fuel oil in combination
with emission abatement mathods instead of low sulphur distillate fuels could result
in use and placing on the market of poor quality fuel. Abatement methods would
allow desulphurisation of high sulphur fuel and reduction of sulphur dioxide
emissions to air. However, if poor quality fuel with high sulphur content is
used for abatement, it could result in a discharge of high density waste water
and have negative effects on marine environment. Ensuring a minimum fuel
quality aims also at preventing the risk of ship engine failure;
(4)              
Article 4 on maximum sulphur content in gas oil
is amended to delete the references to the dates of entry into force of sulphur
limits that have become obsolete.
(5)              
Article 4a is amended to:
–     
Introduce a new provision on the sulphur fuel
standard applicable outside SECAs ("general standard");
–     
Align the sulphur fuel standards applicable in
SECAs with the revised Annex VI of MARPOL;
–     
Introduce 0.1% sulphur limit for passenger ships
operating outside SECAs in 2020, thereby restoring the link of the requirements
for passenger ships operating outside SECAs with those for SECAs;
–     
Clarify that the register of local suppliers of marine fuel that Member States are
obliged to maintain should be
publicly available;
–     
Delete the outdated references;
–     
Empower the Commission to designate new SECAs on
the basis of the IMO's decision.
(6)              
Article 4b is amended to delete the exemption
from the obligation set out in Article 4b(1) for certain vessels operating in
the Hellenic Republic, as the period for which it was granted has expired, and
to delete the reference to the dates of entry into force of sulphur limits that
have become obsolete.
(7)              
Article 4c is amended and Articles 4d and 4e are
added to align the Directive to the revised Annex VI of MARPOL and adapt it to
technical progress. In particular, the proposed Directive requires Member
States to allow the ships to use emission abatement methods as an alternative to using
low sulphur marine fuels provided that they continuously achieve reductions of
sulphur dioxide emissions equivalent to those that would
be achieved by using low sulphur fuel. The use of emission abatement methods is
also subject to certain criteria to ensure that these
methods do not give rise to significant negative impacts on and risks to human
health and the environment. The criteria will be established either by the IMO,
subject to supplementation or amendment by the Commission Decision or, in the
absence of the IMO instruments, by the European Commission. The emission
abatement methods for use by ships flying the flag of Member States will be
approved either on the basis of the 96/98/EC of 20 December 1996 on marine
equipment[8]
or on the basis of this Directive, by the Committee on Safe Seas and the
Prevention of Pollution from Ships established by Regulation 2099/2002/EC. The
procedure and conditions for testing of new abatement methods remain unchanged.
(8)              
Article 6 is amended to empower the Commission
to specify the frequency of sampling, the sampling methods and the definition
of a sample representative of the fuel examined as well as to adapt the method
for determining the sulphur content and the fuel verification procedure to the
newest international technical standards.
(9)              
Article 7 is amended to clarify the scope of the
report on the sulphur content of fuels covered by the Directive to be submitted
to the Commission by Member States and to empower the Commission to specify the
format and the content of the report. The amendment also aligns paragraph 4 of
Article 7 on adaptations of the relevant Directive's provisions to scientific
and technical progress with the new comitology rules under the Treaty of
Lisbon.
(10)          
Article 8 is deleted as it refers to a Directive
that has been repealed.
(11)          
Article 9 is deleted as the Directive does not
provide for implementing acts.
(12)          
Article 9a is added to provide for conditions
for the exercise of the power to adopt delegated acts by the European
Commission.
Article 2
This article requires Member States to
transpose the proposed Directive.
Article 3
This Article concerns the date of entry
into force of the proposed Directive.
Article 4
This Article addresses the proposed
Directive to the Member States.
4.           BUDGETARY IMPLICATION 
The proposal has no budgetary implication
for the Union budget.
5.           OTHER COMMENTS
The Commission proposal is accompanied by
the Communication which, in section 4, makes suggestions for compliance
strategies and outlines existing tools and possible future measures which can
help industry in meeting its environmental challenges.
The Commission also envisages to codify the
Directive 1999/32/EC and its subsequent amendments, including this proposal for
amendment, once adopted by the European Parliament and the Council. This will
render the Directive 1999/32/EC more readable and legally clear and contribute
to the achievement of the EU better regulation strategy.
2011/0190 (COD)
Proposal for a
DIRECTIVE OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
amending Directive 1999/32/EC as regards
the sulphur content of marine fuels

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[9],
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[10],

Having regard to the opinion of the
Committee of the Regions[11],
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)              
The environmental policy of the Union, as set
out in the action programmes on the environment and in particular in the Sixth
Environmental Action Programme adopted by Decision No 1600/2002/EC of the
European Parliament and the Council[12],
has as one of its objectives to achieve levels of air quality that do not give
rise to significant negative impacts on and risks to human health and the
environment.
(2)              
Council Directive 1999/32/EC of 26 April 1999
relating to a reduction in the sulphur content of certain liquid fuels and
amending Directive 93/12/EEC[13]
lays down the maximum permitted sulphur content of heavy fuel oil, gas oil
and marine gas oil used in the Union.
(3)              
Emissions from shipping due to the combustion of
marine fuels with a high sulphur content contribute to air pollution in the
form of sulphur dioxide and particulate matter, which harm human health and contribute
to acidification.
(4)              
According to Directive 1999/32/EC the Commission
is to report to the European Parliament and the Council on the implementation of
the Directive and to table any proposals for amendments, in particular as
regards the reduction of sulphur limits for marine fuel in SOx Emission Control
Areas (SECAs), taking account of work within the International Maritime
Organisation (IMO).
(5)              
In 2008, a Resolution was adopted to amend Annex
VI of the Protocol of 1997 to amend the International Convention for the
Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978
relating thereto (hereafter MARPOL), containing regulation for the prevention
of air pollution from ships. The revised Annex VI to MARPOL entered into force
on 1 July 2010.
(6)              
The revised Annex VI to MARPOL introduces, inter
alia, stricter sulphur limits for marine fuel in SECAs (1.00% as of 1 July 2010
and 0.10% as of 1 January 2015) as well as in sea areas outside SECAs (3.5% as
of 1 January 2012 and, in principle, 0.50% as of 1 January 2020). Most Member
States are obliged to require ships to use fuel with maximum 1.00% sulphur
content in SECAs as of 1 July 2010 based on their international commitments. In
order to ensure coherence with international law as well as to secure proper
enforcement of new globally established sulphur standards in the Union, the
provisions of Directive 1999/32/EC should be aligned with the revised Annex VI
to MARPOL. In order to ensure a minimum quality of fuel used by ships either
for fuel or technology based compliance, marine fuel the sulphur content of
which exceeds the general standard of 3.5 % by mass should not be allowed for
use or placing on the market in the Union.
(7)              
Passenger ships operate mostly in ports or close
to coastal areas and their impacts on human health and the environment are
significant. Those ships are required to use marine fuel with the same maximum
sulphur content as is applicable in SECAs (1.5%). Given that stricter sulphur
standards will apply in SECAs, it is justified by the need to improve air
quality around ports and coasts in the non-SECA territories that the same
standards apply to passenger ships. However, the introduction of a new SECA
standard for passenger ships would be delayed by 5 years in order to avoid potential
problems with fuel availability.
(8)              
Proper enforcement of the obligations with
regard to the sulphur content of marine fuels is necessary to achieve the aims
of Directive 1999/32/EC. The experience from the implementation of that
Directive has shown that there is a need for stronger monitoring and
enforcement regime to ensure a proper implementation of the Directive. To that
end, it is necessary that Member States ensure sufficiently frequent and
accurate sampling of marine fuel placed on the market or used on board ship as
well as regular verification of ships' log books and bunker delivery notes. It
is also necessary that they establish a system of effective, proportionate and
dissuasive penalties for non-compliance with the provisions of Directive 1999/32/EC.
In order to ensure more transparency of information, it is also appropriate to
provide that the register of local suppliers of marine fuel is made publicly
available.
(9)              
Reporting by Member States under Directive 1999/32/EC
has proved insufficient for the purpose of verification of compliance with the
provisions of the Directive due to the lack of harmonized and sufficiently
precise provisions on the content and the format of the Member States' reports.
Therefore, more detailed indications as regards the content and the format of
the report are necessary to ensure a more harmonised reporting.
(10)          
Following the adoption of Directive 2010/75/EU
of the European Parliament and of the Council of 24 November 2010 on industrial
emissions (integrated pollution prevention and control)[14], which recasts the Union
legislation on industrial emissions, it is necessary to revise the provisions
of Directive 1999/32/EC on maximum sulphur content of heavy fuel oil
accordingly.
(11)          
Complying with the low fuel sulphur limits, particularly
in SECAs, can result in a significant increase in the price of marine fuels, at
least in the short term, and can have a negative effect for the competitiveness
of short sea shipping in comparison with other transport modes as well as for
the competitiveness of the industries in the countries bordering SECAs.
Suitable solutions are necessary in order to reduce compliance costs for the
affected industries, such as allowing for alternative, more cost-effective
methods of compliance than fuel-based compliance and providing support, where
necessary. The Commission will, based inter alia on
reports from Member States, closely monitor the impacts of the shipping
sector's compliance with the new fuel quality standards, particularly with
respect to possible modal backshift from sea to land based transport.
(12)          
Access to emission abatement methods should be
facilitated. Those methods can provide emission reductions at least equivalent
to, or even greater than, those achievable using low sulphur fuel, provided that
they have no significant negative impacts on the environment, such as marine
ecosystems, and that they are developed subject to appropriate approval and
control mechanisms. The criteria for use of emission abatement methods should be established either by the IMO, subject to supplementation or
amendment by the Commission Decision or, in the absence of the IMO instruments,
by the European Commission. The already known alternative methods, such as the
use of on-board exhaust gas cleaning systems or the mixture of fuel and
liquefied natural gas (LNG) should be recognised in the Union. It is important
to promote testing and development of new emission abatement methods.
(13)          
In order to determine the date of the
application of 0.50% sulphur limit, to designate new SECAs, to approve new
alternative abatement methods and to establish the appropriate conditions for
their use, to ensure appropriate monitoring of sulphur content of fuels and the
harmonized content and the format of Member States' reports and to adapt the
provisions of the Directive to scientific and technical progress, 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
specification of the date from which the maximum sulphur content of fuel of 0.50%
by mass should apply in the Union, designation of new SECAs on the basis of the
decision of the IMO, approval of new emission abatement methods not covered by Council
Directive 96/98/EC[15]
and establishment, supplementation or amendment of conditions for their use, the
specification of the means of sampling and emission monitoring and the content
and the format of the report and the amendment of Article 2, points 1, 2, 3,
3a, 3b and 4 or Article 6 paragraph 1(a) and 2 in the light of scientific and
technical progress and, where relevant, the instruments of the IMO. It is of
particular importance that the Commission carry out appropriate consultations
during its preparatory work, including at expert level. The Commission, when
preparing and drawing up delegated acts, should ensure a simultaneous, timely
and appropriate transmission of relevant documents to the European Parliament
and to the Council.
(14)          
It is appropriate for the existing Committee on
Safe Seas and the Prevention of Pollution from Ships established by Regulation
(EC) No 2099/2002 of the European Parliament and of the Council of 5 November
2002 establishing a Committee on Safe Seas and the Prevention of Pollution from
Ships (COSS) and amending the Regulations on maritime safety and the prevention
of pollution from ships[16]
to assist the Commission in the approval of the emission abatement technologies
which are not covered by Council Directive 96/98/EC of 20 December 1996 on
marine equipment[17].
Directive 1999/32/EC should therefore be amended accordingly,
HAVE ADOPTED THIS DIRECTIVE:
Article 1
Directive 1999/32/EC is amended as follows:
1.           Article 1(2) point (h) is replaced by the following:
'(h) fuels used on board vessels employing
emission abatement methods in accordance with Articles 4c and 4e.'
2.           Article 2 is amended as
follows:
(a)     points 3a and 3b are replaced by the
following:
'3a. marine diesel oil means any
marine fuel as defined for DMB grade in Table I of ISO 8217 with the exception
of the reference to the sulphur content;
3b. marine gas oil means any marine
fuel as defined for DMX, DMA and DMZ grades in Table I of ISO 8217 with the
exception of the reference to the sulphur content;'
(b)     point 3m is replaced by the following:
'3m. emission abatement method
means any fitting, material, appliance or apparatus to
be fitted in a ship or other procedure, alternative fuel, or compliance method,
used as an alternative to low sulphur marine fuel
meeting the requirements set out in this Directive, that is verifiable,
quantifiable and enforceable;'
3.           Article 3 is amended as
follows:
(a)     paragraphs 1 and 2 are replaced by the
following:
'1.         Member States shall ensure
that heavy fuel oils are not used within their territory if their sulphur
content exceeds 1 % by mass.
2. Until 31 December 2015, subject to
appropriate monitoring of emissions by competent authorities the requirement
set out in paragraph 1 shall not apply to heavy fuel oils used:
(a)     in combustion plants which fall within
the scope of Directive 2001/80/EC of the European Parliament and of the Council*,
which are subject to Article 4(1), 4(2) or 4(3)(a) of that Directive and which
comply with the emission limits for sulphur dioxide for such plants as set out
in that Directive;
(b)     in combustion plants which fall within
the scope of Directive 2001/80/EC, which are subject to Article 4(3)(b) and
4(6) of that Directive and the monthly average sulphur dioxide emissions of
which do not exceed 1 700 mg/Nm³ at an oxygen content in the flue gas of 3 % by
volume on a dry basis;
(c)     in combustion plants which do not fall
under points (a) or (b), and the monthly average sulphur dioxide emissions of
which do not exceed 1 700 mg/Nm³ at an oxygen content in the flue gas of 3 % by
volume on a dry basis;
(d)     for combustion in refineries, where
the monthly average of emissions of sulphur dioxide averaged over all
combustion plants in the refinery, irrespective of the type of fuel or fuel
combination used, but excluding plants which fall under points (a) and (b), gas
turbines and gas engines, do not exceed 1 700 mg/Nm3 at an oxygen content in
the flue gas of 3 % by volume on a dry basis. 
As from 1 January 2016, subject to
appropriate monitoring of emissions by competent authorities the requirement
set out in paragraph 1 shall not apply to heavy fuel oils used:
(a)     in combustion plants which fall within
the scope of Chapter III of Directive 2010/75/EU of the
European Parliament and of the Council **,
and which comply with the emission limits for sulphur dioxide for such plants
as set out in Annex V of that Directive or, where those emission limit values
are not applicable according to that Directive, for which the monthly average
sulphur dioxide emissions do not exceed 1 700 mg/Nm³ at an oxygen content in
the flue gas of 3 % by volume on a dry basis;
(b)     in combustion plants which do not fall
under point (a), and the monthly average sulphur dioxide emissions of which do
not exceed 1 700 mg/Nm3 at an oxygen content in the flue gas of 3 % by volume
on a dry basis;
(c)     for combustion in refineries, where
the monthly average of emissions of sulphur dioxide averaged over all
combustion plants in the refinery, irrespective of the type of fuel or fuel
combination used, but excluding plants falling under point (a), gas turbines
and gas engines, do not exceed 1 700 mg/Nm3 at an oxygen content in the flue
gas of 3 % by volume on a dry basis.
Member States shall take the necessary
measures to ensure that any combustion plant using heavy fuel oil with a
sulphur concentration greater than that referred to in paragraph 1 is not
operated without a permit issued by a competent authority, which specifies the
emission limits.'
(b)     paragraph 3 is deleted.
4.           The
following Article 3a is inserted:
'Article 3a
Maximum sulphur content in marine fuel
Member States shall ensure that marine
fuels are not used or placed on the market within their territory if their
sulphur content exceeds 3.5 % by mass.'
5.           Article 4(1) is replaced
by the following:
'1. Member States shall ensure that gas
oils are not used within their territory if their sulphur content exceeds 0.10
% by mass.'
6.           Article 4a is amended as
follows:
(a)     the title is replaced by the following
:
'Maximum sulphur content of marine fuels
used in territorial seas, exclusive economic zones and pollution control zones
of Member States, including SOx
Emission Control Areas and by passenger ships operating on regular services to
or from Union ports' 
(b)     paragraph 1 is replaced by the
following:
'1. Member States shall take all necessary
measures to ensure that marine fuels are not used in the areas of their
territorial seas, exclusive economic zones and pollution control zones falling
within SOx Emission Control Areas if the sulphur content of those fuels by mass
exceeds:
(a)          
1.00 % until 31 December 2014;
(b)         
0.10 % as from 1 January 2015. 
This paragraph shall apply to all vessels
of all flags, including vessels whose journey began outside the Union.
(c)     the following paragraph 1a is
inserted:
'1a. Member States shall take all
necessary measures to ensure that marine fuels are not used in the areas of
their territorial seas, exclusive economic zones and pollution control zones if
the sulphur content of those fuels by mass exceeds:
(a)          
3.50 % as of 1 January 2012;
(b)         
0.50 % as from 1 January 2020.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 9a of this Directive concerning the
date from which the sulphur standard laid down in point (b) of this paragraph
applies. Based on the assessment by the IMO of the availability of marine
fuel to comply with the maximum sulphur content of fuel of 0.50% by mass,
referred to in Regulation 14(8) of Annex VI of MARPOL, this date shall be 1
January 2020 or 1 January 2025. 
This paragraph shall apply to all vessels of all flags, including vessels
whose journey began outside of the Union, without prejudice to paragraphs 1 and
4 and Article 4b.'
(d)     paragraph 2 is replaced by the
following:
'The Commission
shall be empowered to adopt delegated acts in accordance with Article 9a of
this Directive concerning the designation of sea areas
as SOx Emission Control Areas on the basis of the decision of the IMO in
accordance with Regu­lation 14(3)(2) of Annex VI to MARPOL.'
(e)     paragraphs 4, 5 and 6 are replaced by
the following:
'4. Member States shall take all necessary
measures to ensure that marine fuels are not used in their territorial seas,
exclusive economic zones and pollution control zones falling outside SOx
Emission Control Areas by passenger ships operating on regular services to or
from any Union port if the sulphur content of those fuels by mass exceeds: 
(c)          
1.5 %;
(d)         
0.10 % as from 1 January 2020.
5.      Member States shall require the
correct completion of ships' logbooks, including fuel-chan­geover operations,
as a condition of ships' entry into Union ports.
6.      Member States shall, in
accordance with Regulation 18 of Annex VI to MARPOL:
(a)          
maintain a publicly available register of local
suppliers of marine fuel;
(b)         
ensure that the sulphur content of all marine
fuels sold in their territory is documented by the supplier on a bunker
delivery note, accompanied by a sealed sample signed by the representative of
the receiving ship;
(c)          
take action against marine fuel suppliers that
have been found to deliver fuel that does not comply with the specifi­cation
stated on the bunker delivery note;
(d)         
ensure that remedial action is taken to bring
any non-compliant marine fuel discovered into compliance.'
(e)          
paragraph 8 is deleted.
7.           Articles 4b and 4c are
replaced by the following:
'Article 4b
Maximum sulphur content of marine fuels used by ships at berth in Union
ports
1. Member States shall take all necessary
measures to ensure that the following vessels do not use marine fuels with a
sulphur content exceeding 0.10 % by mass:
(b)     ships at berth in Union ports,
allowing sufficient time for the crew to complete any necessary fuel-changeover
operation as soon as possible after arrival at berth and as late as possible
before departure.
Member States shall require the time of
any fuel-changeover operation to be recorded in ships' logbooks.
2. Paragraph 1 shall not apply:
(a)     whenever, according to published
timetables, ships are due to be at berth for less than two hours;
(d)     to ships which switch off all engines
and use shore-side electricity while at berth in ports.
3. Member States shall ensure that marine
gas oils are not placed on the market in their territory if the sulphur content
of those marine gas oils exceeds 0.10 % by mass. 
'Article 4c 
Emission abatement methods
1.          Member States shall allow the
use of emission abatement methods by ships of all flags in their ports,
territorial seas, exclusive economic zones and pollution control zones, as an
alternative to using marine fuels that meet the requirements of Articles 4a and
4b, subject to the provisions of paragraphs 2 and 3. 
2.          Ships using the emission abatement methods referred to in paragraph 1
shall continuously achieve reductions of sulphur dioxide emissions that are at
least equivalent to the reductions that would be achieved by using marine fuels
that meet the requirements of Articles 4a and 4b. The sulphur dioxide emissions
resulting from the use of the emission abatement methods shall not exceed the
limit values set out in Annex 1.
3. The
emission abatement methods referred to in paragraph 1 shall comply with
the criteria specified in the instruments referred to in Annex 2.1, unless
superseded or supplemented by the criteria set out in Annex 2.2. 
4.          The Commission shall be
empowered to adopt delegated acts in accordance with Article 9a concerning:
–              
the amendment or the supplementation of the
values set out in Annex 1;
–              
the amendment or the supplementation of the list
of instruments
referred to in Annex 2.1; 
–              
the establishment, the amendment or the supplementation
of the criteria referred to in Annex 2.2; and
–              
detailed requirements for monitoring of
emissions, where relevant. 
The Commission shall take into account, inter
alia, scientific and technological progress as well as the relevant instruments and standards adopted by the International
Maritime Organisation.'
8.           The following Articles 4d
and 4e are inserted:
'Article 4d
Approval of emission abatement methods for use on board ships flying
the flag
of a Member State
1. Emission abatement methods falling within
the scope of Council Directive 96/98/EC* shall be approved in
accordance with the provisions of that Directive.
2. Emission abatement methods not covered
by paragraph 1 shall be approved in accordance with the procedure referred to
in Article 3(2) of Regulation 2099/2002/EC of the European Parliament and of
the Council of 5 November 2002 establishing a Committee on Safe Seas and the
Prevention of Pollution from Ships (COSS)**,
taking into account: 
(a)          
guidelines developed by the IMO;
(b)         
results of any trials conducted under Article
4e;
(c)          
effects on the environment, including achievable
emission reductions, and impacts on ecosystems in enclosed ports, harbours and
estuaries;
(d)         
feasibility of monitoring and verification.'
'Article 4e
Trials of new emission abatement methods
Member
States may, in cooperation with other Member States, as appropriate, approve
trials of ship emission abatement methods on vessels flying their flag, or in
sea areas within their jurisdiction. During those trials, the use of marine
fuels meeting the requirements of Articles 4a and 4b shall not be mandatory,
provided that all of the following conditions are fulfilled:
(1) the Commission and any port State
concerned are notified in writing at least six months before trials begin;
(2) permits for trials do not exceed 18 months
in duration;
(3) all ships involved install tamper-proof
equipment for the continuous monitoring of funnel gas emissions and use it
throughout the trial period;
(4) all ships involved achieve emission
reductions which are at least equivalent to those which would be achieved
through the limits on sulphur in fuel specified in this Directive;
(5) there are proper waste management systems
in place for any waste generated by the emission abatement methods throughout
the trial period;
(6) there is an assessment of impacts on the
marine environment, par­ticularly ecosystems in enclosed ports, harbours and
estuaries throughout the trial period;
(7) full results are provided to the
Commission, and made publicly available, within six months of the end of the
trials.'
9.           Article 6 is amended as follows:
(a)     paragraph 1 is replaced by the
following:
'1. Member States shall take all necessary
measures to check by sampling that the sulphur content of fuels used complies with
Articles 3, 3a, 4, 4a and 4b. The sampling shall commence on the date on which
the relevant limit for maximum sulphur content in the fuel comes into force. It
shall be carried out with sufficient frequency and in such a way that the
samples are representative of the fuel examined, and in the case of marine
fuel, of the fuel being used by vessels while in relevant sea areas and ports.
Each of the
following means of
sampling, analysis and inspection of marine fuel shall be used:
(a) sampling of the marine fuel for on-board
combustion while being delivered to ships, in accordance with the Guidelines
for the sampling of fuel oil for determination of compliance with the revised
MARPOL Annex VI*, and analysis of its sulphur content;
(b) sampling and analysis of the sulphur
content of marine fuel for on­board combustion contained in tanks and in sealed
bunker samples on board ships;
(c) inspection of ships' log books and bunker
delivery notes.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 9a concerning:
(i) the frequency of sampling; 
(ii) the sampling methods;
(iii) the definition of a sample
representative of the fuel examined;
(iv) the information to be included in ships'
log books and bunker delivery notes.'
(b)     paragraph 1a is deleted.
(c)     paragraph 2 is replaced by the
following: 
'2. The reference
method adopted for determining the sulphur content shall be ISO method 8754
(2003).
In order to determine
whether marine fuel delivered to and used on board ships is compliant with the
sulphur limits required by Articles 3, 3a, 4, 4a and 4b the Fuel Verification
Procedure for MARPOL Annex VI Fuel Oil Samples** shall be used.'
10.         Article 7 is amended as
follows:
(a)     paragraph 1 is replaced by the
following:
'1. Each year by 30 June, Member States shall, on the basis of
the results of the sampling, analysis and inspections carried out in accordance
with Article 6, submit a report to the Commission on the compliance with the
sulphur standards set out in this Directive for the preceding year.'
(b)     the following paragraph 1a is
inserted:
'1a. The Commission shall be empowered to adopt delegated acts in accordance with
Article 9a concerning the information to be included in
the report and the format of the report.'
(c)     paragraphs 2 and 3 are deleted.
(d)     paragraph 4 is replaced by the
following:
'4.         The
Commission shall be empowered to adopt delegated acts in accordance with
Article 9a concerning the adaptations of Article 2, points 1, 2, 3, 3a, 3b and
4, Article 6 paragraph 1(a) and (2) to scientific and technical progress.'
11.         Article 8 is deleted.
12.         Article 9 is deleted.
13.         The following Article 9a is
inserted:
'Article 9a
Exercise of the delegation
1.      The
power to adopt delegated acts is conferred on the Commission subject to the
conditions laid down in this Article. 
2.      The
delegation of power referred to in Articles 4a(1a) and (2), 4c(4), 6(1), 7(1a)
and 7(4) shall be conferred on the Commission for an indeterminate period of
time from [the date of entry into force of this Directive].
3.      The
delegation of power referred to in Articles 4a(1a) and (2), 4c(4), 6(1), 7(1a)
and 7(4) may be revoked at any time by the European Parliament or by the
Council. A decision of revocation shall put an end to the delegation of the
powers 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.      As
soon as it adopts a delegated act, the Commission shall notify it simultaneously
to the European Parliament and to the Council. 
5.      A
delegated act adopted pursuant to Articles 4a(1a) and (2), 4c(4), 6(1), 7(1a)
and 7(4) shall enter into force only if no objection has been expressed either
by the European Parliament or the Council within a period of 2 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 2 months at the initiative of the European Parliament or the
Council.'
14.         The Annex to Directive
1999/32/EC is replaced by the Annex to this Directive.
Article 2
Transposition
1.           Member States shall bring
into force the laws, regulations and administrative provisions necessary to
comply with this Directive by [12 months after the entry into force of this
Directive] at the latest. They shall forthwith communicate to the
Commission the text of those provisions and a correlation table between those
provisions and this Directive.
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 3
Entry into force
This Directive shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.
Article 4
This
Directive is addressed to the Member States.
Done at […],
For the European Parliament                       For
the Council
The President                                                 The
President
ANNEX
'ANNEX 1
Maximum
emission values for abatement methods as referred to in Article 4c(2)
              Marine
fuel sulphur limits referred to in Articles 4a and 4b and Regulations 14.1 and
14.4 of Annex VI of MARPOL and corresponding emission limit values referred to
in Article 4c(2)
 Marine fuel Sulphur Content (% m/m) || Ratio Emission SO2(ppm)/CO2(% v/v) 
 4.50 || 195.0 
 3.50 || 151.7 
 1.50 || 65.0 
 1.00 || 43.3 
 0.50 || 21.7 
 0.10 || 4.3 
Note:    -The use of the Ratio Emissions limits is only applicable when
using petroleum based Distillate or Residual Fuel Oils. 
             - In the case of exhaust gas cleaning systems that absorb
CO2 during the exhaust gas cleaning process it is necessary to measure the       CO2
prior to the cleaning process and use the CO2 concentration before cleaning
with the SO2 concentration after cleaning.' 
'ANNEX 2
Criteria for the use of emission abatement methods referred to in
Article 4c(3)
1. The emission abatement methods referred
to in Article 4c shall comply at least with the criteria specified in the
following instruments, as applicable:
 Emission abatement method || The relevant Commission decision 
 Mixture of marine fuel and boil-off gas || Commission Decision 2010/769/EU of 13 December 2010 on the establishment of criteria for the use by liquefied natural gas carriers of technological methods as an alternative to using low sulphur marine fuels meeting the requirements of Article 4b of Council Directive 1999/32/EC relating to a reduction in the sulphur content of certain liquid fuels as amended by Directive 2005/33/EC of the European Parliament and of the Council on the sulphur content of marine fuels (OJ L 328, 14.12.2010, p. 15). 
 Exhaust gas cleaning systems || IMO RESOLUTION MEPC.184(59) adopted on 17 July 2009 
2. Ships
using emission abatement methods in accordance with Article 4c shall:
–     
continuously monitor and record the emissions of
sulphur dioxide, and
–     
document thoroughly that any waste streams
discharged into the sea, including enclosed ports, harbours and estuaries have
no significant negative impacts on and do not pose risks to human health and
the environment.'
[1]               Communication from the Commission, Europe 2020 A strategy for smart, sustainable and inclusive growth, COM(2010) 2020 final.
[2]               SEC (2005) 1133: Commissions Staff Working Paper
accompanying the Communication on Thematic Strategy on Air Pollution (COM(2005)446
final), the Directive on Ambient Air Quality and Cleaner Air for Europe(COM(2005)447
final) and the Commission Staff working paper on the implementation of EU Air
Quality Policy and preparing for its comprehensive review, SEC(2011)342 final. 
[3]               In the EU SECAs cover the Baltic and North Seas and
the English Channel.
[4]               Resolution MEPC.176(58) adopted on 10 October 2008
(Revised MARPOL Annex VI).
[5]               SEC [reference]
[6]               More detailed explanation on the subsidiarity
principle is available in the Impact Assessment accompanying this proposal.
[7]               OJ
L 334, 17.12.2010, p. 17. 
[8]               OJ L 46, 17.02.1997, p. 25.
[9]               OJ C , , p. .
[10]             OJ C , , p. .
[11]             OJ C , , p.
[12]             OJ L 242, 10.9.2002, p. 1.
[13]             OJ L 121, 11.5.1999, p. 13.
[14]             OJ L 334, 17.12.2010, p. 17.
[15]             OJ L 241, 29.8.1998, p. 27.
[16]             OJ L 324, 29.11.2002, p. 1.
[17]             OJ L 46, 17.02.1997, p. 25.
*               OJ L 309, 27.11.2001, p.1.
**             OJ L 334, 17.12.2010, p. 17.
*               OJ L 241, 29.8.1998, p. 27.
**             OJ L 324, 29.11.2002, p. 1.
*               Resolution MEPC.182(59), adopted on 17.07.2009.
**             Appendix VI to Resolution MEPC.176(58) adopted on 10
October 2008 (Revised MARPOL Annex VI).