State Law No. 15.434, dated 9th January, 2020, enacts the new Environmental Code of the State of Rio Grande do Sul, thereby fully revoking the Environmental Code in effect up to then (State Law No. 11.520/2000), as well as some articles of the State Forest Code (Law No. 9.519/92) and other environmental regulations.

The recently enacted law reproduces the text approved by the Legislative Assembly in December 2019. The new Environmental Code aims to maintain environmental protection and sustainability issues, while reducing red tape for the operation of the enterprises by standardizing federal and state general provisions, reducing conflicts of interpretation and creating new environmental licensing procedures aimed to make licensing less bureaucratic.

Among the main changes provided by the over 230 articles, we highlight the following:
– Standardization of the concepts provided by state legislation related to permanent preservation areas to meet those provided by federal legislation. Included is the revocation of the umbrella requirement that demanded an Environmental Impact Study (EIA/RIMA) for the licensing of activities that interfered in APPs regardless of the level of interference. EIA/RIMA is still required for activities classified as causing significant environmental impact.

– Standardization of the regulations provided by state legislation regarding the Atlantic Forest Biome to meet existing federal legislation, including rules regarding the use, protection and delimitation of the Biome.

– Definition of the legal concept of the “Pampa” Biome (located in the south of Brazil). Although this new law already authorizes some activities in these areas, the conservation regulations are yet to be determined by future provisions.

– Standardization of the regulations provided by state legislation concerning Conservation Units to meet existing federal provisions, while revoking the need for some specific authorizations for the licensing of activities located within a 10-kilometer radius of those locations.

– Standardization of all expiration dates of environmental licenses to meet federal legislation. For instance, Operating Licenses, under previous State legislation, had a term of 5 years. Such licenses, according to federal legislation, will expire in 10 years.

– Inclusion of special procedures for the issuance of environmental licenses, such as the Single License, and the Operation and Regularization License (in addition to the existing three-phase model consisting of the Preliminary License, the Installation License and the Operating License). These new procedures had already been adopted in practice but lacked legal provisions.

– Creation of the Environmental License by Commitment – LAC, an online procedure whereby the entrepreneur declares to accept the criteria, preconditions, requirements and environmental restrictions established by the licensing authority, and uploads required documents so as to receive a license authorizing the location, installation and operation of a given activity or enterprise. The State Environmental Council has yet to define which activities may be licensed through a LAC, yet the new law has already defined that activities involving significant environment impact will not be licensed this way.

– Definition of criteria and procedures for the environmental licensing of enterprises and activities, with changes in matters that involve EIA/RIMA and public hearings.

– Alteration of concepts and procedures that involve environmental infractions and the application of penalties in the administrative sphere. The possibility of appealing to the State Environmental Council (CONSEMA) has been excluded. The regulations for the applicable defense procedures are yet to be determined by future provisions.

– Protection to locations such as wetlands, tidelands, the frontal sand dunes of the Atlantic Ocean and moving dune areas that hold significant ecological and scenic value, as defined by the competent state environmental body.

The new law also encompasses provisions regarding mining, water resources, sanitation, environmental audits, coastal management, soil use, solid waste and others. The application of many of the provisions of the new law will depend on further regulations by the government. It is very important for entrepreneurs to pay attention to the changes brought by this new legislation and by its future regulations, as well as to the consolidation of the interpretations that may arise from all these legal modifications.

Souto Correa’s environmental team took part in the discussions during the legislative process that resulted in the new Environmental Code of Rio Grande do Sul and is at your disposal for further clarifications.

The full content of the law can be accessed here.