On December 18, 2018, the Ministry of Energy and the Energy Regulatory Commission published in the Federal Official Gazette the Resolution A/044/2018, which issues the applicable criteria for biofuels-related activities and, in general terms, sets forth the following:
Biofuels trading consists of, jointly or separately, offering to final users the following:
The sale of biofuels.
The management or contracting of transport, storage or distribution services for biofuels, and
The provision or intermediation of value-added services for the benefit of users or final users.
Biofuels retail consists of direct retail sale to the consumer of biofuels, within specific or multimodal purpose facilities.
The distribution of authorities among biofuels regulators will be as follows:
- The Ministry of Energy shall:
Grant and revoke permits for the production, transportation by means different from pipelines, and pure biofuels retail.
Issue and oversee regulation, guidelines and other regulatory provisions that establish the quality and characteristics of pure biofuels.
- The Energy Regulatory Commission shall:
Regulate, oversee and issue general provisions and permits to carry out pipeline transport, storage, distribution and retail activities of pure biofuels that will be mixed with refined products, hydrocarbons or petrochemicals.
Issue and oversee regulations, guidelines and other regulatory provisions that set forth the quality and characteristics of biofuels that, due to the composition of their mixture, are considered hydrocarbons, refined products or petrochemicals.
The permits granted from the effective date of the Resolution shall be ruled by the provisions set forth therein; however, permits granted prior to the entry into force of the Resolution will be respected in their terms.
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