
Article 1 
Directive 97/68/EC is hereby amended as follows:

((1)) Article 4(6) is replaced by the following:
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6. Compression ignition engines for use other than in the propulsion of railcars and inland waterway vessels may be placed on the market under a flexibility scheme in accordance with the procedure referred to in Annex XIII in addition to paragraphs 1 to 5.';
((2)) Article 10 is amended as follows:

((a)) in paragraph 1a, the second subparagraph is deleted;
((b)) the following paragraphs are inserted:
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1b. By way of derogation from Article 9(3g), (3i) and (4a), Member States may authorise the placing on the market of the following engines for railcars and locomotives:
(a) replacement engines that meet the Stage III A limits, where they are to replace engines for railcars and locomotives that:
((i)) do not meet the Stage III A standard; or
((ii)) meet the Stage III A standard but do not meet the Stage III B standard;
(b) replacement engines that do not meet Stage III A limits, where they are to replace engines for railcars without driving control and not capable of independent movement, so long as such replacement engines meet a standard no lower than the standard met by engines fitted to existing railcars of the same type.Authorisations under this paragraph may be granted only in cases where the approval authority of the Member State is satisfied that the use of a replacement engine that meets the requirements of the latest applicable emissions stage in the railcar or locomotive in question will involve significant technical difficulties.
1c. A label bearing the text “REPLACEMENT ENGINE” and bearing the unique reference of the associated derogation shall be affixed to engines covered by paragraph 1a or 1b.
1d. The Commission shall assess the environmental impacts of, and possible technical difficulties in respect of compliance with, paragraph 1b. In the light of that assessment, the Commission shall, by 31 December 2016, submit to the European Parliament and the Council a report reviewing paragraph 1b accompanied, if appropriate, by a legislative proposal including an end date for the application of that paragraph.';
((c)) paragraph 7 is replaced by the following:
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7. Member States shall permit the placing on the market of engines, as defined in points A(i), A(ii) and A(v) of Section 1 of Annex I, under the flexibility scheme in accordance with the provisions set out in Annex XIII.';
((3)) Annex XIII is amended in accordance with the Annex to this Directive.
Article 2 

1. Member States shall adopt and publish, by 24 November 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 measures.When Member States adopt those measures, 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 
This Directive shall enter into force on the 20th day following its publication in the Official Journal of the European Union.
Article 4 
This Directive is addressed to the Member States.
Done at Strasbourg, 16 November 2011.
For the European Parliament
The President
J. BUZEK
For the Council
The President
W. SZCZUKA
ANNEX

Section 1 of Annex XIII is replaced by the following:
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1.  1.1. Except during Stage III B, an OEM that wishes to make use of the flexibility scheme, with the exception of engines for the propulsion of railcars and locomotives, shall request permission from any approval authority for the OEM’s engine manufacturers to place on the market engines intended for the OEM’s exclusive use. The number of engines that do not comply with the current emission limits, but are approved to the most recent previous stage of emission limits, shall not exceed the ceilings set out in Sections 1.1.1 and 1.1.2.
 1.1.1. The number of engines placed on the market under the flexibility scheme shall, in each engine category, not exceed 20 % of the annual quantity of equipment with engines in that category that is placed on the market by the OEM (calculated as an average of the latest 5 years’ sales on the Union market). Where an OEM has placed equipment on the Union market for less than 5 years, the average shall be calculated based on the period for which the OEM has placed equipment on the Union market.
 1.1.2. 

Engine category P (kW) Number of engines
19 ≤ P < 37 200
37 ≤ P < 75 150
75 ≤ P < 130 100
130 ≤ P ≤ 560 50
 1.2. During Stage III B, but for a period no longer than 3 years from the beginning of that stage, with the exception of engines for use in the propulsion of railcars and locomotives, an OEM that wishes to make use of the flexibility scheme shall request permission from any approval authority for the OEM’s engine manufacturers to place on the market engines intended for the OEM’s exclusive use. The quantities of engines that do not comply with the current emission limits, but are approved to the most recent previous stage of emission limits, shall not exceed the ceilings set out in Sections 1.2.1 and 1.2.2.
 1.2.1. The number of engines placed on the market under the flexibility scheme shall, in each engine category, not exceed 37,5 % of the annual quantity of equipment with engines in that category that is placed on the market by the OEM (calculated as an average of the latest 5 years’ sales on the Union market). Where an OEM has placed equipment on the Union market for less than 5 years, the average shall be calculated based on the period for which the OEM has placed equipment on the Union market.
 1.2.2. 

Engine category P (kW) Number of engines
37 ≤ P < 56 200
56 ≤ P < 75 175
75 ≤ P < 130 250
130 ≤ P ≤ 560 125
 1.3. 
Such permission shall be granted only where there are technical grounds for not being able to comply with the Stage III B emission limits.
 1.4. 

((a)) a sample of the labels to be affixed to each piece of non-road mobile machinery in which an engine placed on the market under the flexibility scheme will be installed. The labels shall bear the following text: “MACHINE No … (sequence of machines) OF … (total number of machines in respective power band) WITH ENGINE No … WITH TYPE-APPROVAL (Dir. 97/68/EC) No …”;
((b)) a sample of the supplementary label to be affixed on the engine bearing the text referred to in Section 2.2.
 1.5. The OEM shall provide the approval authority with any necessary information connected with the implementation of the flexibility scheme that the approval authority may request in order to make a decision.
 1.6. The OEM shall provide any requesting approval authority in the Member States with any information that the approval authority requires in order to confirm that engines claimed to be, or labelled as being, placed on the market under the flexibility scheme are properly so claimed or labelled.
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