Brazil biofuel regulator bill transits Congress

11 June 2008 19:00  [Source: ICIS news]

HOUSTON (ICIS news)--The Brazilian lower house energy committee is scheduled on Wednesday to vote on an biofuels regulatory bill transiting the house.

The bill, PL 1552/07, by Deputy Roberto Santiago (Green Party – Sao Paulo), closes a legal loophole by giving federal fuels regulator, the National Petroleum Agency (ANP), jurisdiction over the entire biofuels complex.

The Chamber of Deputies special committee must approve the bill for it to continue on to full house approval. As the bill enjoys broad support in committee, no great opposition was expected.

The bill would make the ANP responsible for inspecting production, trade, storage, stocking, resale and certification of all biofuels into and out of the country and within its borders.

Biodiesel was included in the ANP’s purview by an amendment to Brazil’s petroleum law 11,097 in 2005, but ethanol falls into a legislative grey area.

Since ethanol is blended with gasoline and sold also as a stand alone fuel by Brazil’s predominately flex-fuel automobile owners, the ANP currently has operating jurisdiction over the fuel only when it is sold to the consumer.

The bill would reinforce that role thoughout the entire production and commercial chain for all biofuels.

Brazil is the world’s largest exporter of ethanol and the second largest producer after the US. An effort is also underway to expand renewable diesel production in the arid northeast region using castor as feedstock.

For more on ethanol visit ICIS chemical intelligence
Bookmark Simon Robinson’s big biofuels blog
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By: John Waggoner
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