Ministry for Ecology, Energy, Sustainable Development & Regional Planning (MEEDDAT)

1. ROAD PRICING IN FRANCE • Step toward EETS ROAD PRICING IN FRANCE Step toward EETS • Pay-per-kilometre • Eco-tax • on Heavy Goods Vehicles • Pay-per-kilometre • Eco-tax • on Heavy Goods Vehicles X The Modal Pricing Task Force (MEEDDAT / DGITM / SAGS / MT) Phone: +33 1 40 81 78 61Email: mt.sags.dgitm@developpement-durable.gouv.fr Ministry for Ecology, Energy, Sustainable Development & Regional Planning (MEEDDAT) General Department for Infrastructure, Transport and The Sea (DGITM)

2. P-P-Km Eco-Tax on HGVs • Aims 3 • Charging Principles 4 6 • Ways of payment • Network 5 7 • Collection • Outsourcing 8 • Inter-operability • Agenda 14 9 • Key figures 15 Contents Pages

3. P-P-Km Eco-Tax on HGVs 1 Aims • Reduce road freight traffic, potentially through modal shift, but essentially through road transport demand reduction • Cover non conceded road networkusage costs (user pays) • Financeintermodal transport policy • Through : (1) passing tax on shippers to send a price signalto the general economy (2) allocating revenue from national roads to AFITF.

4. P-P-Km Eco-Tax on HGVs 2 Charging principles • It consists in charging, in free-flow, the distance travelled on the chosen network by trucks over 3,5 t, according to a base rate depending on truck category, its Euro emissionclass, eventually on congestion level and on regional area (peripheral districts reduction) • Every route to be split into pricing sections (basically, from junctions to junctions) controlled by as many pricing points (about 3000 in total). Just by passing a pricing point, you incur by law the eco-tax for the full length of the corres-ponding pricing section. • Law allows to merge a succession of too short sections. Pricing Point PRICING SECTION

5. P-P-Km Eco-Tax on HGVs 3 Réseau national taxable Itinéraires nationaux exemptables (faible trafic PL hors RTE) Réseau soumis à péage autoroutier, non taxable Départements les plus périphériques Network • Eco-tax to apply to about 13 000 km of roads • 10 500 km non-conceded State Road Network (conceded motorway excluded); • Some roads with low HGV traffic are exonerated. • Plus around 2000 km of local governments’ roads (provisional assumption), so as to prevent serious traffic shifts. • …after due consultation of concerned local authorities. • Revenue collected on these local roads • to be retroceded to them.

6. P-P-Km Eco-Tax on HGVs 4 Ways of payment • Two possible methods for the tax-payer to pay eco-tax : • Post-payment if he did subscribe with an ETS provider (who provides with subscription-based billing service) This way shall enable interoperability, firstly with french concession system (TIS-PL) . • Parliamentary debates introduced possibility to grant • Tax reduction to subscribers • Down-paymentfor casual users and other non-subscribers • A non-subscriber is not asked for guarantees • but must make a down-payment on account, from which • fhe eco-tax is deducted as he travels. • In both cases, basic service to be free for the tax-payer, since these are the only two ways to fulfill eco-tax obligations.

7. P-P-Km Eco-Tax on HGVs 5 Collection • So to assure detection along the roads, every domestic truck, as well as each foreign truck entering the taxable network, will be required by law to equip with a special electronic box (the “On-Board Equipment” or OBE)… • Technology will be chosen during the competitive tendering process: • « DSRC », communicating through dedicated short-range microwawes with aerials intalled at the pricing points (on poles or gantries); • « satellite-based », getting vehicle position out of satellite signals (GNSS) communicating with the ground system by mobile telephony (GPRS) as well as short-range microwaves for enforcement needs.

8. 6 P-P-Km Eco-Tax on HGVs Outsourcing • Vision of future European ET Service imposes to allow eco-tax collection through “ETS Providers”, who grant access to ETS to tax-payers through subscription contracts. • Law on eco-tax provides that tax collection is entrusted to one private partner, “manager” of the collection domain, to be duly “commissioned” by the government for that. • The private partner will be entitled for designing, financing, developing and operating the system for around 10 years. Partnership contract will be awarded through bidding process based on competitive dialog. Call for bidders was launched on March 31st 2009 • This Managing Partner (“MP”) to be remunerated through performance-adjusted rentals, not directly from eco-tax revenue nor as a percentage of it.

9. P-P-Km Eco-Tax on HGVs 7 Inter-operability: current situation • TIS-PL* is the existing ETC subscription frame for trucks tolling covering French conceded motorways, a private initiative managed by the Association of French Motorways Concession-Holders (ASFA). It mobilizes four ETS Providers. Here collected tolls are intended to concession-holders. * TIS-PL = Inter Concession-Holders ETC System for Trucks • TIS-PL and the full French motorways tolling system are based on DSRC technology, traditionally and mostly non-free-flow. • A clear challenge and unquestionable necessity for eco-tax: full inter-operability with TIS-PL. • ASFA and members do co-operate with the Ministry so to establish an inter-operability scheme compliant with coming EETS Decision.

10. 7 P-P-Km Eco-Tax on HGVs Inter-operability: eco-tax scheme • MP to contract with “ETS Providers”in charge of offering ETS subscriptions. Subscribers entitled to post-pay. • Government, by managing procedure for accreditation of ETS Providers and controlling MP/providers intercourse (to be governed by a standard contract), to ensure that the issuing market is open to outsiders. A Conciliatory Body should secure non-discriminatory access of ETS Providers to ETC market. • MP responsible for delivering by itself a “universal” service to non-subscribers – likely to be mostly foreign truckers _ (i.e. lending an OBE in exchange for deposit and down-payment). MP to provide facilities for casual users to obtain OBEs and reload their down-payment on occasion: Internet + distribution points (automated or not), at borders and interfaces with French toll motorways. Here MP to propose its own solutions.

11. 7 Interoperability P-P-Km Eco-Tax on HGVs Subscribers ETS Prov #1 Subscribers ETS Prov #2 Manager Toll Charger Subscribers Etat State ETS Prov #3 Subscribers ETS Prov #4 Multi-Provider Scheme + Compulsory OBE Non-subscribers

12. P-P-Km Eco-Tax on HGVs 7 Inter-operability: contractual scheme

13. P-P-Km Eco-Tax on HGVs 7 Inter-operability: main issues • Tax collection => “ETS Providers”must grant financial guarantee => need for auditable collection process (data transfer,…) • Free access to ETS provision => established rules, standard contract and need for a referee • Preparing EETS => habilitation, notified bodies, work on standards

14. 8 P-P-Km Eco-Tax on HGVs Agenda • Eco-tax concept appeared in the draft “Grenelle I”Act, already passed quasi-unanimously at first reading by National Assembly on October 21, 2008 and unanimously by Senate • Meanwhile eco-tax was already established by art.153 of the Finance Act for 2009 (Law N°2008-1425 of Dec. 27, 2008) promulgated on December 28, 2008. • Prior call for tenders was put on March 31, 2009 • …long before signing the partnership contract, expected to come into force in the course of 2010. • Current law expect coming into effect byin the course of 2011. on October 21, 2008 on past February 10. on December 28, 2008. on March 31, 2009. in the course of 2010. end of 2011.

15. 9 P-P-Km Eco-Tax on HGVs Key Figures • Eco-taxable network: around 13 000 km, of which 2000 km of local roads (assumption) • Eco-taxable vehicles (for base year):  600,000 domestic veh. (of which 300,000 over 12t) + 200 000 foreign trucks = 800,000 veh. • Eco-taxable travels per day: 650,000 (average distance 45 km) • Average weighted rate: 12 c / km(assumption) • Expected revenue: around 1 billion euros

16. Here for the future Thanks for your attention Thanks for your attention