The law that establishes a new framework for biofuel production it was promulgated this Wednesday by the national government through publication in the Official Gazette.
With the signature of Vilma Ibarra, the Legal and Technical Secretary, Law 27,640 was made official, which will govern at least until December 31, 2030 and sets the new percentages for the mandatory mixing of bioethanol and biodiesel with diesel and naphtha.
The initiative was promoted by deputy Máximo Kirchner and establishes “the Regulatory Framework for Biofuels”, which includes all the activities of elaboration, storage, commercialization and mixing of biofuels.
Although the norm will be in force until December 31, 2030, the national Executive Power may extend it, only once, for five more years counting from the aforementioned expiration date of the same.
The Secretary of Energy, as the enforcement authority, it may regulate, administer and supervise the production, commercialization and sustainable use of biofuels.
You may also adapt to the terms of the law the standards that establish the quality specifications of biofuels, the safety of the facilities in which they are prepared, mixed and / or stored, and those that are linked to registration and / or enabling companies and products.
The law halves the mandatory biodiesel cut for diesel that will go from 10 to 5%, by volume, measured on the total quantity of the final product.
However, the Ministry of Energy may “raise the aforementioned mandatory percentage when it deems it appropriate based on the supply of demand, the trade balance, the promotion of investments in regional economies and / or environmental or technical reasons.”
But you can also “reduce it to a nominal percentage of 3%, in volume, when the increase in the prices of the basic inputs for the production of biodiesel could distort the price of fossil fuel at the pump (…) or in situations of biodiesel shortage by the manufacturing companies “.
For gasoline, it is established that they must contain a mandatory percentage of 12% bioethanol, in volume, a percentage that will be divided into 6% for fuels made from sugar cane and 6% for corn.
The Ministry of Energy may, in the event of a general and proven shortage, “temporarily reduce” the percentage of bioethanol based on sugar cane and may increase it when it deems it appropriate depending on the supply of demand, the trade balance, environmental reasons or techniques or investment promotion in regional economies.
In the case of corn, the enforcement authority may also apply a reduction of up to 3%.
Likewise, the law establishes tax exemptions in the Value Added Tax and the Income Tax for the acquisition of capital goods or infrastructure works and in the Minimum Presumed Income Tax.
The regulation provides that biofuels are not covered by the Water Infrastructure rate, by the Tax on Liquid Fuels and Natural Gas, by the so-called tax on the transfer for onerous or free title, or on the importation of diesel.
The tax benefit will govern until the end of the regime and will correspond as long as the main raw materials used in the respective production processes are of national origin.
The initiative was approved on July 2 by the Chamber of Deputies, while on July 16 it obtained final approval from the Senate.