Brazil’s CNPE Establishes Guidelines For New Biodiesel Marketing Model – Energy and Natural Resources – Brazil – Mondaq News Alerts

Brazil: Brazil’s CNPE Establishes Guidelines For New Biodiesel Marketing Model

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On December 30, 2020, the National Energy Policy Council
(“CNPE”)  published Resolution No. 14/2020
(“Resolution No. 14”), which establishes guidelines for
the marketing of biodiesel in the national territory and provides
for other measures.

Resolution No. 14 establishes that all biofuel necessary to
comply with the mandatory percentage set forth by Law No.
13,033/2014 must be contracted by means of a marketing model,
replacing the public auctions. The National Agency of Petroleum,
Natural Gas and Biofuels (“ANP”) shall be responsible for
regulating the biodiesel marketing model, which became effective
January 1, 2020.

The ANP must observe the following when defining the marketing
model: (i) protection of consumer interests in relation to price,
product quality and supply; (ii) guarantee of fuel supply in the
national territory; (iii) promotion of free competition; (iv)
increase in the participation of biofuels in the national energy
mix on economic, social and environmental perspectives; and (v) the
objectives, bases and principles of the National Biofuel
Policy.

The marketing model does not prohibit the use of imported raw
material for the production of biodiesel.

Resolution No. 14 provides for a 12-month transition period
counted from the date when the marketing model becomes effective,
in which all the biodiesel marketed must originate exclusively from
production units authorized by the ANP. During the transition
period, ANP may, on exception, authorize the marketing of
imported biodiesel.

The marketing model must provide that that up to 80 percent of
the total volume of biodiesel marketed originates from biodiesel
producing units with the “Social Biofuel Seal.” Such rule
will be an object of study by the Joint Technical Committee for the
Development of the Fuel Market, other Petroleum and Biofuels
Byproducts, established by Decree No. 9,928/2019.

The marketed biodiesel complementary to this percentage may also
originate from biodiesel-producing units with such seal.

Lastly, until the marketing model becomes effective, the public
auctions will continue to be promoted and operated in the current
structure, as provided in CNPE Resolution No. 5/2007, and in the
other specific guidelines established by the Ministry of Mines and
Energy.

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© Copyright 2020. Tauil & Chequer Advogados, a
Brazilian law partnership with which Mayer Brown is associated. All
rights reserved.

This article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein.

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