New rules for incorporating Take Back requirements in the State of São Paulo Environmental Licensing Procedure

Last week, the Environment Agency of the State of São Paulo (CETESB) published a new Board Decision (No. 114/2019/P/C), which modifies the rules for the incorporation of take back requirements in the procedure to request or renew environmental licenses in the State of São Paulo, revoking the former Board Decision No. 076/2018/C.

The new Board Decision reinforces that evidence demonstrating compliance with the legal take back requirements is a condition for the issue or renewal of operating permits. Its focus, therefore, is to regulate the first stage of the structuring, implementation and operation of the take back requirement system, which is expected to continue until December 31, 2021, with the submission of the 2021 Annual Results Report by March 31, 2022. All enterprises subject to regular licensing procedures, which have not requested or renewed their operating licenses in 2019, 2020 or 2021, or have not yet submitted a Take Back Plan to CETESB, must present this evidence by March 31, 2022, as well as the Annual Results Report by March 31 of each year, starting in 2023, with data from January 1 to December 31 of the previous year. Compliance with the quantitative (amount collected) and geographical (areas covered) targets defined by the new Board Decision can occur progressively, as defined by the Take Back Plan, complying, at least, with the specific targets described in the rule until the end of 2021. Non-compliance with the quantitative annual target established by the Take Back Plan will result in environmental liability, which must be compensated by the take back requirement system. The compensation must be established in the Take Back Plan and must be performed in the following year, and by 2021. In regards to the targets, the Reverse Logistics systems implemented in the State of São Paulo must provide a proper environmental destination to 100% of the waste collected.

Moreover, the Take Back Plan must include a publicity campaign on the importance for consumers, and all others involved, to participate in the take back requirement system. It must also include a website with guidelines on the means and venues for waste disposal, according to guidance available on CETESB’s webpage.

The new Board Decision also regulates the submission of bills of sales and recycling certificates as documents that demonstrate compliance with the Take Back requirement targets, as well as address relevant topics applicable to specific sectors:

1. Auto vehicle manufacturers will be subject to Take Back requirements for batteries, tires, lube oil filters or imported lube oil used in their production, unless such products are already covered by a Take Back requirement system from their respective manufacturers.

2. Lube oils in general, as well as their plastic packaging, will also be subject to Take Back requirements and not only the automotive lube oils as previously established.

3. Take Back requirements for home medicines will also cover their packaging.

4. Manufacturers who are not brand owners will be exempt from presenting a Take Back Plan if they demonstrate that the brand owner has already presented one.

5. Gas stations must maintain delivery and/or collection points for consumers to receive waste from their commercialized automotive products subject to the Take Back requirements.

CETESB’s Board Decision No. 114/2019/P/C will come into force 30 days after its publication.

Our Environment Practice Group is available for further clarifications on the matter.