{"id":14176,"date":"2023-09-01T15:34:38","date_gmt":"2023-09-01T18:34:38","guid":{"rendered":"https:\/\/cmalaw.com\/?post_type=contents&#038;p=14176"},"modified":"2023-09-01T18:01:10","modified_gmt":"2023-09-01T21:01:10","slug":"brazilian-senate-approves-bill-of-law-regulating-the-activity-of-carbon-capture-and-storage","status":"publish","type":"contents","link":"https:\/\/cmalaw.com\/homolog\/contents\/brazilian-senate-approves-bill-of-law-regulating-the-activity-of-carbon-capture-and-storage\/","title":{"rendered":"Brazilian Senate approves Bill of Law regulating the activity of Carbon Capture and Storage"},"content":{"rendered":"<p style=\"text-align: justify;\"><span class=\"TextRun SCXW227621914 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW227621914 BCX9\">Th<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">e <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">Bill<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\"> of Law<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\"> 1,425\/2022<\/span> <span class=\"NormalTextRun SCXW227621914 BCX9\">(\u201cBill\u201d) <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">was <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">approved <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">this<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\"> Wednesday<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">, <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">A<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">ugust 30<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">, by the <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">Brazilian Federal <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">Senate. Authored by Jean Paul Prates, former senator and current<\/span><\/span> <span class=\"TextRun SCXW227621914 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW227621914 BCX9\">Chief Executive<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\"> Officer<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\"> of Petrobras, <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">t<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">he Bill <\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">proposes a regulatory framework for Carbon Capture and Storage (&#8220;CCS&#8221;) activities<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\"> in Brazil<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">, with the following highlights<\/span><span class=\"NormalTextRun SCXW227621914 BCX9\">:<\/span><\/span><span class=\"EOP SCXW227621914 BCX9\" data-ccp-props=\"{&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:231}\">\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Grant of Exploration of Geological Reservoirs<\/span><span data-contrast=\"none\">: The Bill stipulates that permanent CCS activities can only be carried out with a Qualified Grant from the Executive Branch (&#8220;Grant&#8221;). The Grant remains in force for 30 (thirty) years, subject to an amendment for an equal period or to early revocation, in case of occurrence of the circumstances outlined in Article 6 of the Bill.\u00a0<\/span>Upon the application for the Grant, a public call shall be made for other entities to express their interest in the requested block of storage within 15 (fifteen) days.<\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span class=\"TextRun Highlight Underlined SCXW212437501 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW212437501 BCX9\">Environmental Licensing<\/span><\/span><span class=\"TextRun Highlight SCXW212437501 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW212437501 BCX9\">: The Grant does not exempt the <\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">requirement<\/span><span class=\"NormalTextRun SCXW212437501 BCX9\"> for <\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">environmental licensing<\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">, which must be obtained <\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">in accordance with<\/span><span class=\"NormalTextRun SCXW212437501 BCX9\"> Law No. 6,938\/1981<\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">, without prejudice to<\/span> <span class=\"NormalTextRun SCXW212437501 BCX9\">any other <\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">applicable licenses<\/span><span class=\"NormalTextRun SCXW212437501 BCX9\">.<\/span><\/span><span class=\"EOP SCXW212437501 BCX9\" data-ccp-props=\"{&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:231}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Availability of Geological Reservoirs<\/span><span data-contrast=\"none\">: The list of geological reservoirs eligible for a Grant and their respective<\/span><span data-contrast=\"auto\"> CO<\/span><span data-contrast=\"auto\">2<\/span><span data-contrast=\"none\"> storage capacity shall be published by the Executive Branch, which shall also indicate the entity responsible for conducting the necessary survey to obtain such information.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:231}\">\u00a0<\/span><span data-contrast=\"none\">Those interested in conducting CCS activities in other reservoirs not made available by the Executive Branch may apply for the grant, provided they submit the required survey and meet the requirements outlined in the Bill.<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\"><span class=\"TextRun Highlight Underlined SCXW53424610 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW53424610 BCX9\">Exclusivity of Brazilian Companies<\/span><\/span><span class=\"TextRun Highlight SCXW53424610 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW53424610 BCX9\">: The Grant can only be applied for by companies incorporated under Brazilian laws, with headquarters and management<\/span><\/span> <span class=\"TextRun Highlight SCXW53424610 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW53424610 BCX9\">in the country, individually or as part of a consortium<\/span><span class=\"NormalTextRun SCXW53424610 BCX9\">.<\/span><\/span><span class=\"EOP SCXW53424610 BCX9\" data-ccp-props=\"{&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:231}\">\u00a0<\/span><\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\"><span class=\"TextRun Underlined SCXW187831868 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW187831868 BCX9\">CO<\/span><\/span><span class=\"TextRun Underlined SCXW187831868 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun Subscript SCXW187831868 BCX9\" data-fontsize=\"11\">2<\/span><\/span><span class=\"TextRun Underlined SCXW187831868 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW187831868 BCX9\"> Storage Monitoring and Management Activities<\/span><\/span><span class=\"TextRun SCXW187831868 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW187831868 BCX9\">:<\/span> <span class=\"NormalTextRun SCXW187831868 BCX9\">These activities must be <\/span><span class=\"NormalTextRun SCXW187831868 BCX9\">executed<\/span><span class=\"NormalTextRun SCXW187831868 BCX9\"> throughout the Grant period and for up to 20 (twenty) years after the permanent cessation of the activity<\/span><span class=\"NormalTextRun SCXW187831868 BCX9\">, <\/span><span class=\"NormalTextRun SCXW187831868 BCX9\">in accordance with<\/span><span class=\"NormalTextRun SCXW187831868 BCX9\"> the <\/span><span class=\"NormalTextRun SCXW187831868 BCX9\">Monitoring Plan and with the Contingency Plan<\/span><span class=\"NormalTextRun SCXW187831868 BCX9\">.<\/span><\/span><span class=\"EOP SCXW187831868 BCX9\" data-ccp-props=\"{&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:231}\">\u00a0<\/span><\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\"><span class=\"TextRun Underlined SCXW16944206 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16944206 BCX9\">Liabilities<\/span><\/span><span class=\"TextRun SCXW16944206 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16944206 BCX9\">: <\/span><span class=\"NormalTextRun SCXW16944206 BCX9\">The operator is objectively liable for any <\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW16944206 BCX9\">damages<\/span><span class=\"NormalTextRun SCXW16944206 BCX9\"> caused by the project. Liability <\/span><span class=\"NormalTextRun SCXW16944206 BCX9\">sha<\/span><span class=\"NormalTextRun SCXW16944206 BCX9\">ll be shared when the operator is performing CCS activities on behalf of a<\/span><span class=\"NormalTextRun SCXW16944206 BCX9\"> CO<\/span><\/span><span class=\"TextRun SCXW16944206 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun Subscript SCXW16944206 BCX9\" data-fontsize=\"11\">2<\/span><\/span><span class=\"TextRun SCXW16944206 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16944206 BCX9\"> emitting entity, a<\/span><span class=\"NormalTextRun SCXW16944206 BCX9\"> CO<\/span><\/span><span class=\"TextRun SCXW16944206 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun Subscript SCXW16944206 BCX9\" data-fontsize=\"11\">2<\/span><\/span><span class=\"TextRun SCXW16944206 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16944206 BCX9\"> reusing entity, or a third party.<\/span><\/span><\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\"><span class=\"TextRun Underlined SCXW214156699 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW214156699 BCX9\">Third-Party<\/span> <span class=\"NormalTextRun SCXW214156699 BCX9\">Access<\/span><\/span><span class=\"TextRun SCXW214156699 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW214156699 BCX9\">: <\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">N<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">on-discriminatory and negotiated access by third parties to the essential infrastructure for transporting CO<\/span><\/span><span class=\"TextRun SCXW214156699 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun Subscript SCXW214156699 BCX9\" data-fontsize=\"11\">2<\/span><\/span><span class=\"TextRun SCXW214156699 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW214156699 BCX9\"> up to the point of delivery to <\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">the Operator <\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">shall be guaranteed<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">, <\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">in accordance with<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\"> the <\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">code<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\"> of <\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">c<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\">onduct<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\"> to be<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\"> drafted<\/span><span class=\"NormalTextRun SCXW214156699 BCX9\"> and practice for access to transport infrastructure.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Finally, the Bill establishes the creation of the Storage Assets Manager (\u201cGAA\u201d), a non-profit private entity responsible for monitoring and managing storage assets associated with geological CO<\/span><span data-contrast=\"auto\">2<\/span><span data-contrast=\"auto\"> storage reservoirs after the operators&#8217; monitoring obligation ends. The Bill also provides for the regulation and oversight of CCS activities by the competent regulatory authority, which shall not be the same authority responsible for granting the Grant \u2013 both are yet to be defined. As this is a bill voted under the terminative decision rite, the text shall proceed for approval by the House of Representatives, without the requirement for approval of the Federal Senate general assembly.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:231}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Our team is available for further information.<\/span><\/p>\n<p><strong>Main Contacts:<\/strong><\/p>\n<p><strong>Alexandre Calmon<br \/>\n<\/strong>S\u00f3cio | Partner<br \/>\n<strong>E:\u00a0<\/strong><a href=\"mailto:acalmon@cmalaw.com\">acalmon@cmalaw.com<\/a><\/p>\n<p><strong>Fabiano Gallo<br \/>\n<\/strong>S\u00f3cio | Partner<br \/>\n<strong>E:\u00a0<\/strong><a href=\"mailto:fabiano.gallo@cmalaw.com\">fabiano.gallo@cmalaw.com<\/a><\/p>\n<p><u><\/u><strong>Marcelo Fraz\u00e3o<br \/>\n<\/strong>S\u00f3cio | Partner<br \/>\n<strong>E:<\/strong>\u00a0<a href=\"mailto:mfrazao@cmalaw.com\">mfrazao@cmalaw.com\u00a0<\/a><\/p>\n<p><strong>Rogerio Campos<br \/>\n<\/strong>S\u00f3cio | Partner<br \/>\n<strong>E:<\/strong> <a href=\"mailto:rogerio.campos@cmalaw.com\">rogerio.campos@cmalaw.com<\/a><\/p>\n<p><strong>Isabela Morbach<br \/>\n<\/strong>Of Counsel<br \/>\n<strong>E:<\/strong> <a href=\"mailto:isabela.morbach@cmalaw.com\">isabela.morbach@cmalaw.com<\/a><\/p>\n","protected":false},"featured_media":14177,"template":"","categories":[],"tags":[],"class_list":["post-14176","contents","type-contents","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/contents\/14176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/contents"}],"about":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/types\/contents"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/media\/14177"}],"wp:attachment":[{"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/media?parent=14176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/categories?post=14176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cmalaw.com\/homolog\/wp-json\/wp\/v2\/tags?post=14176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}