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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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.