COMmon PROcurement of collective and public service transport clean vehicles

1. COMmon PROcurement of collective and public service transport clean vehicles COMPRO EIE/06/200/SI2.448437 Start: January 2007 Duration: 36 months

2. The aim of COMPRO is to enhance the development of the clean vehicles market (CNG and hybrid) taking action on the demand side. COMPRO analyses the conditions for a common procurement of clean collective and public service transport vehicles at European scale by local authorities, aiming both at reducing prices and fostering the consolidation of emerging technologies. What is COMPRO

3. COMPRO gathers an initial number of 4 local authorities: Nantes Metropole (+ Semitan) Bremen (+BSAG) Emilia Romagna Region Gatubolaget (Goteborg) ISIS is coordinating Who is involved

4. The participatory process The whole study is implemented following a participatory process involving the automotive industry, national and local governments and public transport operators (within the Procurement Management Group) in order to keep COMPRO in line with the options available on the market and analyse the conditions for a Common Procurement from different perspectives: • Demand side: convergence on common standards/specification • Supply side: attitude of the industry towards buyers consortia • Juridical perspective: homogeneisation of regulatory frameworks

5. The PMG The PMG has been consolidated. Composed of selected stakeholders representing different interests: • National Bodies (Italian Ministry of Environment, ADEME-F) • Regional Authorities (Regione Emilia Romagna) • Local Authorities (LowCVP, Bremen, Nantes, Polis) • Operators (UITP, Transdev, Gatubolaget, ATM) • Manufactureres (Bredamenarini, Volvo, MAN, Solaris, Irisbus, Evobus) • BEI • Independent Expert

6. The framework The Framework (1) • In the Green Paper "Towards a new culture for urban mobility“ are defined 5 strategic pillars. • The pillar “Towards greener towns and cities” looks at: • Issues: The main environmental issues in towns and cities are related to the predominance of oil as a transport fuel, which generates CO2, air pollutant emissions and noise. • Options: Among the possible options joint procurament is envisaged. • Quoting from it: “…The Commission is already providing support for the development of joint green procurement schemes by public authorities across the EU through pilot projects. On the basis of the results of these projects, the Commission could envisage a wider application of such measures….”. • Common procurement is therefore a key element of the EU strategy towards sustainable urban transport.

7. The Framework (2) • The proposal for a Directive of the European Parliament and of the Council on the promotion of clean and energy efficient road transport vehicles (19/12/07) introduces a new approach in the procurement award process, based on the internalisation of operational lifetime costs of vehicles. • When procuring vehicles, public authorities and operators providing public transport services will use lifetime costs for CO2 and pollutant emissions as well as for fuel consumption as award criteria. • In addition it states: • [...] public bodies and private operators collectively procuring clean and energy efficient vehicles under the same terms of reference, [would] provide a significant stimulus to vehicle manufacturers and provide assurance of a market for these types of vehicles [...]. The high visibility of public transport vehicles could stimulate a wider uptake by other market participants of this approach for internalising external costs in procurement decisions”.

8. The technologies choice • COMPRO is not a technology focussed project. • However the exercise of developing the process aiming at the critical mass for pricies reductions and technology exploitation requires the identification of specific fuel/powertrain cases. • According to both their experience and expectations for the future improvement of their clean fleet policies, the partners agreed on focusing on the following two technologies: compressed natural gas (CNG) and electric hybrid.

9. The technologies choice (2) • On one side because CNG technology is currently regarded as the most mature clean technology; • It already complies with the EEV standard, even if no carbon dioxide emission reductions are achieved with gas operation. • Extra price 50.000 € (over diesel) • On the other side, hybrid vehicles appear in the immediate future to represent a promising alternative technology. • The technology is indeed regarded by manufacturers as a way to dramatically improve bus environmental performances (energy and emissions) • Extra price 150.000 € (over diesel)

10. Technologies assessment by partners (1) • CNG: it worth for significant portion of large fleet

11. Technologies assessment by partners (2) • Hybrid: some way to go. USA experience very encouraging

12. European market of PT vehicles (1) • From UITP report (July 2007) • Distribution of fuel and powertrain: >90% diesel .

13. European market of PT vehicles (2) • From UITP report (July 2007) • EURO standards > 95% below Euro 4 • It comes out quite striking how large is the potential market to be exploited to come closer to a “green public transport” in European cities

14. Trends among partners FRANCE • Increase in the use of “clean” vehicles : + 57% in 6 years • Technical options selected: particle filters then CNG (10% of national fleet) : CNG regarded as a mature option • Other options are less preferred at the time but future interest in hybrid • Controversy over biofuels ITALY • Diesel will remain the leading fuel technology, particularly with reference to the suburban service • CNG will increase and be the most used alternative to diesel (some companies, such as ATAC Rome, plan to invest totally or almost totally in this technology) • Other fuel technologies, such as hybrid and electric, will remain marginal GERMANY • Large majority of diesel buses: 97,8% of national fleet; 60% equipped with particle filters • CNG: 2,2% of total bus fleet • Political side: encourages the extension in number of hybrid buses (medium terms) • Discourages the use of CNG. SWEDEN • Political strong environmental concern • Increase in the use of non fossil fuels: biogas and ethanol (objective: 40% of the local service traffic bus fleet by 2012)

15. Procurement process • The Procurement Process is implemented under real life conditions by the 4 COMPRO local authorities and with a constant dialogue with the manufacturers. • The process entails the following: • agreement on common technical specifications; • agreement on common environmental performance specifications; • definition of the common juridical subject, which will procure on behalf of the group; • assessment of homologation compatibility.

16. Building blocks of the process

17. The critical mass • The success of the project, i.e.: “the definition and assessment of the conditions for a common procurement of clean collective and public service transport vehicles at European scale by local authorities, aiming both at reducing prices and fostering the consolidation of emerging technologies” is strongly linked to the wide sharing of its outcomes by the European public authorities/transport operators responsible for the Local PT services, and their positive appraisal of the benefits in joining a common procurement action. • Therefore: • The analysis is opened to all external cities interested in the process,that are going to play a

18. The Partners COMPRO is coordinated by ISIS. The core partnership includes both local and regional authorities and public transport operators: • Nantes Métropole (France) • Semitan (France) • City-State of Bremen (Germany) • Bremer Straßenbahn AG (Germany) • Emilia Romagna Region (Italy) • Gatubolaget (Sweden) Contacts ISIS – Institute of Studies for the Integration of Systems Via Flaminia, 21 – 00196 Roma Mrs Silvia Gaggi sgaggi@isis-it.com www.isis-it.com EACI Mr Dario Dubolino Dario.Dubolino@ec.europa.euhttp://ec.europa.eu/energy/intelligent/index_en.html www.compro-eu.org