The 28th of November represents the final date for Brazilian ethanol producers to conclude the first stage of compliance with the requirements of the recently published Resolution 26/2012 of the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP).
The resolution, which represented a milestone in the regulation of the ethanol industry in Brazil, has unified the technical, economic and legal requirements for the construction, expansion, modification and operation of ethanol production plants.
The transition period granted to producers already operating was divided into two distinct periods, the first ending 90 days after publication of the Resolution 26/2012 (31.08.2012), and the second only after 5 years, when producers must be fully compliant with the new requirements.
Although the first period is only an initial stage of adequacy, compliance is essential for the producer to ratify its rights over the ethanol plant and to continue trading its production. Ethanol producers shall fill in an extensive registration form, through the ANP online system, including specific information regarding the producing plant and a complete list of the storage tanks.
For plants with production capacity exceeding 200 cubic meters per day, it is also necessary to submit a photographic report to ANP, including a general view of the facilities, the principal equipment related to the production, and the tanks and facilities for entrance and exit of products. The report must be accompanied by a printed and signed version of the producer registration form.
After the 5-year period, full compliance of the ethanol plants with the other requirements of the Resolution 26/2012 will be necessary.
Observations in this update about Brazilian law are by Tauil & Chequer Advogados. They are not intended to provide legal advice to any entity; any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.