On February 9 2018 the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) published Public Consultation and Public Hearing Notice 4/2018, which establishes the requirements necessary to undertake:

  • the production of biofuel activity; and
  • the operation of producing facilities.

The proposal aims to replace the following resolutions, which set out provisions on this matter: ANP Resolutions 26/2012, 41/2012, 15/2013, 30/2013, 14/2014, 9/2015, 660/2017 and 686/2017.

The proposal unifies the biofuels regulatory framework (biodiesel, biomethane and ethanol) in order to:

  • simplify administrative procedures;
  • foster investments in the sector; and
  • reduce costs resulting from the regulation.

In order to achieve its purposes, the following are proposed (among others):

  • abolition of the authorisation required to construct production facilities;
  • abolition of the previous authorisation required for assignments of space;
  • abolition of the minimum storage capacity requirement for facilities; and
  • abolition of differentiations by production capacity.

Therefore, an authorised company will have a single authorisation for performing production activities and one or more operation authorisations, according to the number of production facilities that it operates.

The deadline for consultation expired on March 13 2018.

For further information on this topic please contact Godofredo Mendes Vianna at Kincaid | Mendes Vianna Advogados by telephone (+55 21 2276 6200) or email (godofredo@kincaid.com.br). The Kincaid | Mendes Vianna Advogados website can be accessed at www.kincaid.com.br.

This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.