Latin American Environmental Regulatory Tracker

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HIGHLIGHTS

This month’s tracker reflects key initiatives from May 16 - June 15, 2016.

Product stewardship initiatives continue to preoccupy many Latin American governments. This month brings new sustainable public procurement policies in Chileand São Paulo; a water footprinting bill in Brazil; proposed regulation of plastic bags and restrictions on the lead content of products in Colombia; a recycling initiative in Costa Rica; energy efficiency labeling in Peru; and the first implementing rule to São Paulo’smulti-product take-back regulation.

We are pleased to share that the Firm’s Latin American Practice was profiled in Latinvex this month, a leading regional business publication. Earlier this year, Latinvex named Maddie Kadas for the third time as one of Latin America’s top 100 female lawyers, and also ranked Beveridge & Diamond as one of the top 50 international law firms in Latin America. 

We welcome your questions, comments, and suggestions.

¡Gracias!

Maddie Kadas , Latin American Environmental Practice Leader 

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ARGENTINA

Electricity as a Fundamental Social Right Proposed

A bill (No. 3182-D-2016) proposed in the Chamber of Deputies would declare electricity as a fundamental social right and guarantee national access to this service. Particular emphasis would be placed on supporting socioeconomically disadvantaged households that have difficulty accessing electricity.

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BRAZIL

INMETRO Extends Compliance Deadlines for LED Lamps

The National Institute of Metrology, Quality and Technology (INMETRO) published Portaria 221/2016, extending compliance deadlines for Portaria 144/2015 , which establishes testing, labeling, and registration requirements for integrated Light Emitting Diode (LED) lamps. The respective deadlines for producers, wholesalers and retailers to sell only compliant products are extended by four months to allow companies to clear stocks of products already in the distribution pipeline.

Noise as an Environmental Crime Approved by House Committee

The Urban Development Committee approved a bill ( No. 3588/2015 ) that would amend the Environmental Crimes Law (No. 9.605/1998) to include noise pollution—the production of sounds, noises or vibrations emitted above thresholds permitted by current laws and regulations. Penalties would include fines and imprisonment of three months to one year. The Bill now moves to the Environment and Sustainable Development Committee for review.

Mandatory Water Footprint Disclosure Proposed for Food Products

In response to water shortages in Brazil, a bill (No. 5290/2016) proposed in the Chamber of Deputies would require food packaging and labels to include “water footprint” information—the total amount of water used in the production of food per kilogram of product offered for sale. The Bill is currently under review by the Consumer Defense Committee.

Styrofoam Food and Beverage Container Ban Proposed

A bill (No. 5482/2016) proposed in the Chamber of Deputies would prohibit the use of food and beverage packaging and containers made from Styrofoam in all commercial establishments in Brazil. Packaging and containers could be made from waxed cardboard, molded plastic, or other materials that did not pose a risk to human health or the environment. They would be required to display a symbol indicating the use of recyclable material on the product itself or on an adhesive label.

CETESB Regulates Reverse Logistics Systems in São Paulo

São Paulo's environmental agency (CETESB) has published a formal decision (Directorate Decision No. 120/2016/C) regulating reverse logistics systems in the state. Specifically, the Regulation exempts certain types of take-back operations from environmental licensing waste transportation permit requirements, confirms the applicability of such requirements to other take-back operations, and exempts intact end-of-life electronics from hazardous waste classification. The Regulation will facilitate the implementation of Resolution 45, issued by São Paulo's Secretariat of the Environment (SMA) in June 2015, which establishes the framework for a take-back regime in the state.

Sustainable Public Procurement Bill Proposed in São Paulo

A bill (No. 431/2016) proposed in the state Legislative Assembly would establish criteria for sustainable public procurement. Under the proposal, all government entities would be encouraged to select procurement contracts based on the supplier's use of sustainable practices and proof of environmental certification, rather than cost. If approved, supplier environmental certification would be optional for the first six months after the Bill's enactment and mandatory thereafter.

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CHILE

Conservation Bill Signed into Law

On June 10, 2016, Bill No. 5823/07 was signed into Law, enabling Chilean landowners to protect their land in perpetuity through conservation easements—a voluntary legal agreement between a landowner and a land trust or unit of government that allows the landowner to dedicate their property to conservation without losing their ownership rights. The Law is intended to incentivize the development of private conservation initiatives to protect Chile’s natural heritage and fill gaps within current protected areas.

Heavy Metals Draft Resolution Approved by House

A draft resolution ( No. 589 ) has been approved in the Chamber of Deputies, calling for the President to develop a bill or standard to regulate and measure concentrations of heavy metals in densely populated areas, taking into consideration academic, industrial, and commercial activities. Regulation of heavy metals, especially lead and mercury, has become a legislative focus in Latin America and restrictions should be anticipated in the future.

Biodiversity Draft Resolution Receives House Approval

A draft resolution ( No. 582 ) has been approved in the Chamber of Deputies, calling for the President to ratify the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization—a 2010 supplementary agreement to the 1992 Convention on Biological Diversity. If passed, Chile would join Mexico, Guatemala, Honduras, Panama, Peru, and Uruguay as the countries in Latin America that have achieved ratification.

Sustainable Public Procurement Policy Launched

The Ministry of Environment (MMA) has launched a sustainable procurement policy aimed at reducing the environmental impact of its purchased products and encouraging suppliers to implement sustainable production methods and business activities. According to a government press release, the implementation of the policy will be gradual and increasingly demanding. Key short-term objectives include encouraging suppliers to: (i) reduce their energy consumption and utilize non-conventional renewable energy sources; (ii) provide carbon footprinting information on their business operations; and (iii) properly manage their solid wastes, including implementation of recycling practices. 

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COLOMBIA

Water Access as a Fundamental Human Right Advances

A bill (No. 260/2016C) that would amend the Federal Constitution to declare access to water a fundamental human right was approved in a second House debate. Already passed by the Senate on May 17, 2016, the Bill now moves to a full House vote.

House Proposes Additional Modifications to Lead Restrictions Bill

The Chamber of Deputies has proposed significant modifications to a lead restrictions bill (No. 181/2015C) that was approved by the Senate in December 2015. Notably, the proposed changes would: (i) increase the lead content limits for products, (ii) remove labeling requirements for the packaging of products containing lead and the exterior parts of processed products containing lead, and (iii) expand the exemption for technological products whose function requires lead to include accessories as well.

Plastic Bag Bill Proposed

After the recent enactment of a resolution (No. 668/2016) that regulates the use of plastics bags in the country, a number of plastic bag bills have been proposed in the Chamber of Deputies—most recently, one that would establish measures to reduce their environmental impact ( No. 257/2016 ). The proposal would establish regional programs to encourage the replacement, recovery, and reuse of plastic bags and promote public awareness on the harmful environmental effects associated with the use of bags made from non-biodegradable materials. If approved, the Ministry of Environment would regulate the size and composition of plastic bags within six months of the Bill’s enactment.

Biodiversity Action Plan Launched

The Ministry of Environment and Sustainable Development (MADS) has published its Biodiversity Action Plan 2016-2030, which stems from its 2012 National Policy for the Integrated Management of Biodiversity and Ecosystem Services. Key goals include: (i) restoring one million hectares of degraded land by 2030, (ii) carrying out strategic environmental assessments for “4G” telecommunications infrastructure, highway concession projects, mining and energy expansion programs, and urban and rural developments, and (iii) formulating and implementing a National Bioprospecting Strategy by 2020. 

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COSTA RICA

Draft Hazardous Chemicals Regulations Published

The Ministry of Health has published two draft technical regulations adopting the Globally Harmonized System of classification and hazard communications for hazardous chemical products. The first regulation would govern registration, import, and safety data sheets . Posted for public comment earlier this year, the draft regulation has been slightly modified to narrow its scope and provide new product exemptions, definitions, and response times to registration applications. The second regulation would govern the labeling of hazardous chemical products . If approved, the two draft regulations combined would replace the Regulation for the Registration of Hazardous Chemical Products (Executive Decree No. 28113-S/1999).

National Recycling Strategy Launched

The Ministry of Health, in coordination with the Ministry of Environment & Energy and the Business Development Association, launched the National Strategy for Waste Separation, Recovery, and Reuse 2016-2021. The Strategy stems from the National Plan for Integrated Waste Management 2016-2021 , which provides a roadmap for public and private entities in the short, medium, and long terms to achieve comprehensive waste management in the country. The Plan was created under the Law for Integrated Waste Management (No. 8839) and replaces the Solid Waste Plan (PRESOL) 2008-2015. Within this framework, the Strategy aims to reach a 15% recycling rate in Costa Rica by 2018.

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MEXICO

PROFEPA Detects 59 Tons of Hazardous Waste in 3rd National Highway Operation of 2016

The Federal Attorney for Environmental Protection (PROFEPA) carried out its 3rd National Highway Operation of 2016 to ensure that materials, substances, and hazardous wastes are being transported in accordance with federal laws and regulations for the transport and transboundary movement of wastes. PROFEPA detected the irregular handling of 58.5 tons of hazardous waste, including florescent lamps, lead acid batteries, used oils, and biological and infectious wastes. The Operation led to 8 administrative penalties.

PROFEPA Publishes 2015 Activities Report

PROFEPA has published its 2015 Activities Report, which documents actions taken to protect the environment and ensure compliance with national environmental laws and regulations, and the results achieved. The Report consists of four sections: (i) Results of Institutional Management, (ii) Strategic Operations and Relevant Actions, (iii) International Cooperation, and (iv) Capacity Building.

Mexico Provides Response to CEC Submission Criticizing its Management of Discarded Analog TVs

The Government of Mexico has submitted a response to the Commission for Environmental Cooperation (CEC) on its management of discarded analog televisions during the countrywide transition from analog broadcasting signals to digital after several individuals and NGOs asserted (via Submission SEM-15-002) that Mexico was mismanaging its National Digital Television Transition Program by failing to effectively enforce national environmental laws and uphold international environmental obligations. The response addresses five key issues: (i) waste classification and application of hazardous waste provisions, (ii) development and implementation of the National Digital Television Transition Program, (iii) discarded analog television waste, (iv) communication, access to information, and public participation, and (v) effective implementation of the Stockholm Convention.

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PERU

Energy Efficiency Labeling Regulation Expected Soon

According to the General Director for Energy Efficiency in the Ministry of Mines and Energy (MEM), the technical regulation for energy efficiency labeling is in the final stages of approval and should be published shorty via Supreme Decree. The regulation will be mandatory for manufacturers and importers of electrical products and will go into effect one year after its publication in the Official Gazette.

Peru Environmental Performance Report Published

The Organization for Economic Cooperation and Development (OECD) and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) have released a report that evaluates Peru’s environmental performance between 2003 and 2013 and provides recommendations for improvement. As a participant of the OECD’s Country Program, Peru has developed the report according to OECD criteria and methodologies. 

Madeleine Boyer Kadas

Principal

+1.512.391.8010
mkadas@bdlaw.com

Paul E. Hagen

Principal

+1.202.789-6022 phagen@bdlaw.com

Russell N. Fraker

Associate

+1.202.789.6048 rfraker@bdlaw.com

Tiffany Carlson

Paralegal

+1.512.391.8011 tcarlson@bdlaw.com

Beveridge & Diamond's Latin American Practice

As part of our International Environmental practice, we help multinational clients navigate dynamic and unprecedented change in Latin American environmental law. Our Latin American group counsels clients from various industrial sectors on a wide range of issues arising under the domestic environmental regulations of most Latin American countries with emphasis in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, and Peru.  Learn more at www.bdlaw.com/LatinAmerica

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