SIMA edits Resolution that regulates the conversion of fines into environmental services

The Infrastructure and Environment Protection Office of the State of São Paulo – SIMA published Resolution SIMA No. 24/2020 on March 24, 2020. It consolidates some provisions of Resolution SMA No. 51/2016, which regulates the conversion of fines program. The updates aim at addressing provisions established on Section IV of State Decree No. 64,456/2019, which provides the possibility that Environmental Recovery Agreement Terms (TCRA) contemplate the conversion of fines into environmental quality preservation, improvement and recovery services.

Among other measures, the Resolution establishes that (i) the amount to be converted must be sufficient to bear the ecological restoration of at least one hectare; (ii) each restored hectare under ecological restoration programs will be equal to 2,000 Fiscal Units of the State of São Paulo (UFESPs) and; (iii) a 3-year deadline to comply with the TCRA, with the possibility of a 2-year deadline extension in case of decisive reason, besides the non-existence of negligence by the party liable for the fine.

The Resolution will come into force on April 22, 2020.