Mobility Basic Figures

According to figures presented within the EU funded project ALTER-MOTIVE the total energy consumption in car passenger transport in Bulgaria has varied between about 28 PJ and 36 PJ within the period 1999 to 2007. Road transport is the largest source of polycyclic aromatic hydrocarbons (PAHs) in the country. With respect to alternative fuels of car passenger transport in Bulgaria no use of alternative fuels in car passenger transport has been reported so far. PAH emissions have increased respectively by 31.4 t in 2001 to 64.6 t in 2006. There is an ongoing trend of an increasing share of passenger transport by private cars (by 8.3 percentage points higher in 2005 compared to 2000, reaching 64.3 percent) and a sharp decrease in the share of public transport in passenger transport activity. The market share of diesel in car passenger transport increased continuously until 2007. The car stock in Bulgaria increased continuously during the last 20 years. Bulgarians received the possibilities to import “second-hand” very cheap, inefficient, low quality, high polluting cars from Western Europe. A drop in stock in 2006 was caused by the action of the Ministry of Internal Affairs to re-register the car stock. Several hundred thousands cars were taken out of motion or their registration was terminated. The passenger car stock in Bulgaria has a disadvantageous age structure. Used vehicles account for 85% of the country's vehicle stock and imports of used vehicles outnumber new vehicles by 10 to one. New cars represent just 1 % of total automotive imports. The average age of cars on Bulgarian roads is around 17-20 years, according to the Bulgarian Union of Automobile Importers. Since 2005 there is a considerable continually growing stock of LPG/CNG/biogas vehicles (in 2007/08 there was calculated more than 100,000 units). According to data collection within the EU funded project MADEGASCAR for 2009 in Bulgaria there ais a stock of about 40,000 biogas cars, about 200 biogas busses used in public transport and 20 biogas heavy duty vehicles. Currently there are 5 passenger car models available on the market that run with CNG/biogas.

In the last decade in Bulgaria several cities have started to introduce alternative fuels in bus public transport mostly funded within EU projects or funding schemas:

• In 1989 the Sofia Municipality started a programme for introduction of LPG into the public bus fleet and later on CNG. The programme is carried out by the municipal company Sofia Autotransport EAD, with co-financing by the Bulgarian Ministry of Environment and Waters. The programme is implemented by a number of projects, including conversion of diesel engines into methane ones, purchase of new methane-fuelled buses, construction of natural gas distribution pipelines and compressor stations. Currently, 55 buses on diesel-methane and 13 buses on methane are in operation. The exploitation of these buses in 2008 reduced the year consumption of conventional fuel by 4.53%.

• Since October 2008 the Municipality of the Bulgarian Black Sea city Bourgas is operating the first LNG buses on its public transport network. The buses, produced by the Czech company TEDOM have very low emission levels and meet the EURO 5 requirements. The first delivery of 5 brand new buses was made in October, the second group of 5 vehicles arrived in December 2008. Their diesel engines are specially designed to be operated with LNG. They have a very low emission level and meet the EURO 5 requirements. For example, the content of СО2 in the exhaust gases varies between 0.01 and 0.08 g/kWh аnd those of the NOx - between 1.81 to 3.25 g/kWh. The experience, accumulated not only in Bourgas, but also in Sofia and Plovdiv, where the same: LNG buses operated has proven that they are very efficient from both environmental and economic point of view.

• The City of Plotiv has received an EBRD loan of about 6 m EUR for renewal of the bus fleet and for launching of e-ticketing. The loan has been used for purchasing of 30 new buses running on natural gas to replace the old diesel buses, used in the city. The new CNG buses began servicing the bus routes in Plovdiv in September 2009. The loan has been granted to the privately owned regional transport company Hebros Bus which provides public transport services in Plovdiv and in southern Bulgaria for the purchase of buses. The Bank’s credit has been complemented by grant funds from the Dutch government for the introduction of an electronic ticketing system. Additionally, Hebros Bus has indulged itself to invest 1,3 m EUR for building own refuelling stations for the needs of the new bus fleet and for refurbishment of two interurban bus stations.

• The City of Gorna Oryahovitsa has converted five public transport diesel vehicles to environment-friendly vehicles running on methane. The project included the purchase of 5 new LPG/biodiesel engines and conversion of the existing diesel buses into LPG/biodiesel buses. The purchase of the engines will be organised through an open public procurement tender. Gorna Oryahovitsa was the first Bulgarian demonstration city within the EU funded CIVITAS framework project.

According to the geo-information system European Environmental Atlas there is one hydrogen refuelling test-station in Sofia (Space Research Institute) which is not related to road vehicle refuelling. No refuelling infrastructure for E85 flexifuel is listed (crossed checked with various sources, i.e. results of the EU funded project BEST). The webportal www.poiplaza.com/index.php list 75 LPG refuelling stations in Bulgaria. The webportal www.gas-tankstellen.de/menu.php list 9 refuelling stations for CNG. According to data collection within the EU funded project MADEGASCAR for 2009 in Bulgaria there 12 biogas refilling stations for cars and 20 for busses used in public transport.

The EU funded Sugre project gives an example of good practices in the Bulgarian market of propane - butane gas activities with the company “KALVACHA GAS”. The company trades from its own LPG depot and supplies directly clients all over the country by LPG trucks as well as has developed a network of refuelling stations for LPG all over the country.

In Sugre it is stated that the biodiesel production and distribution has shown a significant growth the last years in Bulgaria. Currently, the biodiesel production accounts about 60,000 tonnes yearly in four sites in the country - Silistra, Karapelit, Dimovo and Brusartci. Under construction are some other bigger installations (in Ruse, Vidin, Provadia) and the expectation in 2010 is that biodiesel production achieve about 250000 t/year. At the moment there are 10 bio-diesel sales stations “Tempo” in Bulgaria - 8 in Sofia and two in the country.

Fiscal Incentives

Since 1999 in Bulgaria there is a uniform tax rate of 20 EUR for the acquisition of all types of vehicles. The so-called “product tax” as synonym for registration tax is defined according to the age of cars and is paid once, upon first acquisition or registration of the vehicle. The taxes for 2010 are defined as follows:

• For new cars = 133 BGL (68 EUR)

• Cars up to 5 years = 182 BGL (93 EUR)

• Cars between 6-10 years = 230 BGL (118 EUR)

• Cars older than 10 years = 242 BGL (124 EUR)

Furthermore, there is a so called excise tax, as follows:

• For used cars the excise tax is assessed according to the motor power and it varies from 33,33 BGL/kW (126-157,5, SAE system), 35 BGL/kW (for motors from 120 to 150 kW, DIN system), 60 BGL/kW (above 150 kW, DIN system) and 57.14 BGL7kW (above 157.5, SAE system),

• For new cars the excise tax amounts to 700 BGL + 90 BGL/kW for the difference above 120 kW, DIN system and 700 BGL + 85.71 BGL/kW for the difference above 126 kW, SAE system.

The tax on ownership of private passenger cars is related to the cylinder capacity (kW) and for commercial vehicles the tax is related on the weight and the number of axis of the vehicles.

There is an excite duty on fuels of 0.350 EUR/litre for unleaded petrol and 0.307 for diesel. Biofuels, if not blended with other fuels, have been an excise tax exempt since 2005.  It should be noted that not all types of bioethanol are included in this exemption.

Funding

There are different EU operational programmes for Bulgaria all managed by national institutions which in principally can be used for funding the purchase of environmental friendly vehicles:

• The Operational Programme Regional Development is related to the European Reconstruction and Development Fund with an overall budget of 1.3 bill EUR has under priority 1 / Operation 1.5 Sustainable Urban Transport System the target of increasing use of renewable transport sources (co-financing volume of the ERDF is 85%).

• Operational Programme on Transport 2007-2013 (OPT) with a budget of 2 bill EUR. The purpose of OPT is the development of railway, road and water infrastructure and the promoting of the development of combined transport in accordance with transport policy of the European Union and the requirements for development of the Trans-European transport network to achieve stability of the Bulgarian transport system. On specific priorities there are developing a sustainable transport system.

• Bulgaria implemented the Bulgarian Energy Efficiency and Renewable Energy Credit Line.  Renewable energy projects are eligible for a 20 percent grant.  Loans over 12.8 billion Euros have already been granted.

Regulation

Act on Renewable and Alternative Energy Sources (ZVAEIB), published in the Official Gazette (No 49 of 19 June 2007). The Act provides the drafting of national indicative targets for the promotion of the use of biofuels and other renewable fuels in transport which are expressed as a minimum proportion of the final annual consumption of motor petrols and diesel fuel. The plan is to use biofuels in the transport sector in pure form or in mixtures as a component in liquid fuels of petroleum used for internal combustion engines. The targets for biofuels are:

• an indicative target of 5.75% by 2010 and

• a 10% binding minimum target to be achieved by all Member States for the share of biofuels in overall EU transport petrol and diesel consumption by 2020, to be introduced in a cost-efficient way.

Unleaded fuels are banned in Bulgaria since 2004. A maximum of 10 gr/litre sulphur is allowed for diesel and petrol.

In 2009 the total volume of public procurement in Bulgaria was about 362 m EUR in 2009, about 54.6 m for supplies whereof a considerable share was given to the procurement of vehicles.

With the latest amendment form of the national procurement law from 2004 (latest Prom. SG. No. 28 of 6 April 2004) in Bulgaria EU directive XXX on the promotion of clean vehicles was implemented in national legislation. According to the new Art. 26a. (New, SG br.52 ot2010, in force from 04.12.2010) it is defined that

“In awarding contract for delivery of the vehicles listed in Annex № 3a entities are required to take into account energy aspects and impacts environment during the lifetime of the vehicles, which include minimum requirements:

1. energy consumption, and

2. carbon dioxide (CO2), and

3. emissions of nitrogen oxides (Nox), non-methane hydrocarbons (NMHC) and particulate particles.”

In Appendix № 3a to art. 26a it is defined how many kilometres should be undertaken for the calculation of the vehicle’s life-time cost of different vehicle categories:

• Passenger cars (M1) = 200,000 km

• Commercial vehicles (N1) = 250,000 km

• Heavy goods vehicles (N2, N3) = 1,000,000 km

• Coach (M2, M3) = 800,000 km

In practise the Green Public Procurement is still highly underrepresented in Bulgaria. Until now, with their environmental example the British Embassy in Sofia is a "white crow". Only in 2010 Bulgarian institutions take the first Green Public Procurement steps, i.e. the Ministry of Environment ordered a 8,000 package recycled paper. According to Nona ekoministara Karadjova another similar contract at this time covering all Bulgarian ministries was awared later on. In 2009 a number l GPP Awareness Raising Workshops by ITC/ILO and DG environment was carried out. Among other there were presented specific award criteria related to the environment covering also vehicles as well as the existing GPP toolkit of the EU (there is no Bulgarian version of the toolkit).

Bulgarian Public Procurement Law

The advantages of Green Public Procurement (Кадифената ръкавица на купувача)

National GPP Awareness Raising Workshops

TRANSPORT AND ENVIRONMENT IN BULGARIA PRESENT AND FUTURE

LONG NATIONAL PROGRAM TO PROMOTE USE OF BIOFUELS IN THE TRANSPORT SECTOR D. 2008-2020