ENVIRONMENTAL NEWSLETTER ALMEIDA ADVOGADOS

MAY 2011

CORPORATIVE LAW

So Paulo Rio de Janeiro Belo Horizonte Natal

So Paulo | Brasil Av. Brigadeiro Faria Lima, 1461 - 16 andar Torre Sul 01452-002 So Paulo | SP Tel.: +55 (11) 2714-6900 Fax: +55 (11) 2714-6901

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Index
Government reaches agreement on Brazilian Forest Code.......................................................................3 So Paulo State Court studies the creation of an Environmental Matters Court in the Capital of the State..................3 IBAMA issues new rules for repairing degraded areas..3 DNPM publishes amendment to the administrative rule on the disposal of water carboys..........4 Rules for the Committee of Reverse Logistics are already in force.....4 Court rules the State of Minas Gerais shall not grant Simplified Environmental Licenses for agricultural projects...5 New bill proposes CNPJ (Brazilian Register of Corporate Taxpayer) suspension when dealing with illegal timber.................................................................................5 Belo Horizonte City Hall creates the Special Projects Execution Core for Works listed on BHs Environmental Recovery Project5

Rio de Janeiro | Brasil Av. Presidente Vargas, 417 - 2 andar 20071-003 Rio de Janeiro | RJ Tel.: +55 (21) 2223-1504 Fax: +55 (21) 2223-1504

Belo Horizonte | Brasil R. Maranho, 1694 - 3 andar 30150-331 Belo Horizonte | MG Tel.: +55 (31) 3227-5566 Fax: +55 (31) 3227-3669

Natal | Brasil R. Paulo Barros de Ges, 1840 cj. 1301 59064-460 Natal | RN Tel.: +55 (84) 3206-1278 Fax: +55 (84) 3606-0778

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So Paulo Rio de Janeiro Belo Horizonte Natal

So Paulo | Brasil Av. Brigadeiro Faria Lima, 1461 - 16 andar Torre Sul 01452-002 So Paulo | SP Tel.: +55 (11) 2714-6900 Fax: +55 (11) 2714-6901

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request forwarded by the State Legislative Assembly, which led to the creation of a commission to study the subject. Government reaches Brazilian Forest Code agreement on The commission's work is still in early stages, assessing information with government agencies, attorneys, institutions, environmental law professors, judges of the capital, chief judges of the TJ/SP, Higher Court judges (Superior Court of Justice), judges of specialized courts in other States and federal courts and civil society organizations interested in the topic. The commission is also developing a preliminary comparative study of standards that created environmental courts in other States under the Federal Judiciary System, in order to identify any existing models or parameters in Brazil. The commission has already received favorable responses on the creation of such courts and expects to have its opinion on the subject by the end of 2011. IBAMA publishes new rules for repairing degraded areas The Brazilian Institute of Environment and Natural Resources (IBAMA) issued on April 14th, 2011, the Normative Ruling n. 04/2011 (IN), which aims to establish the minimum requirements and guidelines on PRAD (Projects of Recovery of Degraded Areas) or tempered areas. The new rules also apply to the recovery of Permanent Preservation Areas (APPs) and to the Legal Reserve (RL) areas. The said IN is already in effect. The IN provides that depending on the conditions of the area to be recovered and on other conditions outlined in the technical analysis, it can be stimulated and lead to the natural regeneration of the native species.
Natal | Brasil R. Paulo Barros de Ges, 1840 cj. 1301 59064-460 Natal | RN Tel.: +55 (84) 3206-1278 Fax: +55 (84) 3606-0778

The government Ministries and environmentalists have reached an agreement with the Brazilian Congress on the reform of the Brazilian Forest Code. Addressing one of the most controversial topics at the moment, on the Permanent Preservation Areas (APPs), the Ministry of the Environment (MMA) has agreed to reduce to 15 meters the APPs located on the banks of rivers of width no wider than 10 meters. The Ministry of Agriculture has agreed to maintain the 30 meters for the banks preserved from deforestation. The government also entered into an agreement with farmers in another controversial subject. The Legal Reserve (part of rural properties destined for environmental preservation) will no longer be required to be registered at the notary public. The goal is to make this process simpler being mandatory a simple statement of such issue to be addressed to the competent environmental authority. The president of the House of Representatives has scheduled the voting on the Brazilian Forest Code for the first week of May. The voting was not put into the Congress agenda before so that there could be more time for the interested parties to enter into more agreements. So Paulo State Court studies the creation of an Environmental Matters Court in the Capital of the State Since 2010, the Court of Justice of So Paulo (TJSP) examines the possibility of establishing environmental courts in the State capital. This idea comes from a
Rio de Janeiro | Brasil Av. Presidente Vargas, 417 - 2 andar 20071-003 Rio de Janeiro | RJ Tel.: +55 (21) 2223-1504 Fax: +55 (21) 2223-1504

Belo Horizonte | Brasil R. Maranho, 1694 - 3 andar 30150-331 Belo Horizonte | MG Tel.: +55 (31) 3227-5566 Fax: +55 (31) 3227-3669

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So Paulo Rio de Janeiro Belo Horizonte Natal

So Paulo | Brasil Av. Brigadeiro Faria Lima, 1461 - 16 andar Torre Sul 01452-002 So Paulo | SP Tel.: +55 (11) 2714-6900 Fax: +55 (11) 2714-6901

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The IN also states that the IBAMA may advise the adoption of Terms of Reference for small rural properties in a few situations such as the drafting of Simplified Degraded Area Restoration Project, all according to the INs Annex II. As for the medium and large rural properties the Terms of Reference may be adopted when drafting the Simplified PRAD or the Deed of Commitment due to technical analysis depending on each situation. In order to make the rule applicable, the IN brings the definitions of degrade area and also the definition for tempered or altered areas DNPM publishes amendment to the administrative rule on the disposal of water carboys On March 29th, 2011 the National Department of Mineral Production (DNPM) released the Administrative Rule No. 128, which amends the DNPM Administrative Rule No. 387 of September 19th, 2008, which regulates identification aspects on water carboys. The changes determined by the cited rule seek to amend the method of identifying the expiration date of the returnable water carboys (10 and 20 Liters), to facilitate the consumers viewing and understanding of the information for the purchased mineral and bottled water, and also to include on the container certification of manufacture of the carboys. The said Administrative Rule provides that in addition to the ABNT standards referred to in art. 4 of the Rule, the returnable carboys shall have the carboy life cycle time of 3 years printed visibly in the upper lane, between the neck and the reinforcement ring above, containing its
Rio de Janeiro | Brasil Av. Presidente Vargas, 417 - 2 andar 20071-003 Rio de Janeiro | RJ Tel.: +55 (21) 2223-1504 Fax: +55 (21) 2223-1504

"Manufacture date" and Expiration date", and also the certification number that certifies compliance with the ABNT standards. These new additions comply with the understanding of the Ministry of Justice of Brazil. The Administrative Rule comes into force within 90 (ninety) days counting from the date of its publication. Rules for the Committee of Reverse Logistics are already in force The Statute of the Committee for Implementation of Reverse Logistics in Brazil was published on April 11th, 2011, Administrative Rule n. 113/2011 of the Ministry of the Environment (MMA). The Reverse Logistics is one of the foundations of the National Solid Waste Policy (PNRS) together with the principle of shared responsibility and the proper selective waste collection. The Committee is a collegiate body with advisory and deliberative characteristics, aiming to promote the establishment of means for reverse logistics in the country. The Committee was established by Decree n. 7.404 of December 23rd, 2010, which regulates the National Policy on Solid Waste - Law n. 12.305/10. The Committee comprises representatives from the following ministries of the Brazilian government: Environment; Agriculture, Livestock and Supply; Health; Development, Industry and Foreign Trade; and Treasury. The Committee is chaired by the main representative of the Ministry of the Environment. The Committee is to set the schedule for the implementation of the reverse logistics systems in Brazil, is to approve the technical and economic feasibility of these
Natal | Brasil R. Paulo Barros de Ges, 1840 cj. 1301 59064-460 Natal | RN Tel.: +55 (84) 3206-1278 Fax: +55 (84) 3606-0778

Belo Horizonte | Brasil R. Maranho, 1694 - 3 andar 30150-331 Belo Horizonte | MG Tel.: +55 (31) 3227-5566 Fax: +55 (31) 3227-3669

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So Paulo Rio de Janeiro Belo Horizonte Natal

So Paulo | Brasil Av. Brigadeiro Faria Lima, 1461 - 16 andar Torre Sul 01452-002 So Paulo | SP Tel.: +55 (11) 2714-6900 Fax: +55 (11) 2714-6901

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systems, setting the strategic guidance for the reverse logistics systems set forth by the PNRS. Court rules the State of Minas Gerais shall not grant Simplified Environmental Licenses for agricultural projects The Public Prosecutor Office of Minas Gerais (MPMG) filed a Civil Class Action (ACP) against the State of Minas Gerais requiring injunction recognition over the unconstitutional aspects of certain provisions of the Environmental Policy Council (COPAM) an agency of the State Secretariat of Environment and Sustainable Development (SEMAD) regulation n. 74/94. The MPMG understands that the State Law contradicts the Resolution n. 01/86 of the National Environment Council (CONAMA), which lists several projects and activities for which the filing of the Study of Environmental Impacts (EIA) is mandatory. The Court granted the MPMGs injunction and forbade the State to grant or renew mining Environmental Operating Permits (AAFs) for any agricultural projects, covering areas of more than one thousand hectares. Failure to comply with the decision may lead to fines up to R$ 100,000.00 per non-complied act. New bill proposes CNPJ (Brazilian Register of Corporate Taxpayer) suspension when dealing with illegal timber The Brazilian Congress assesses the legislative bill n. 282/11, which intends to suspend for 180 days the National Register of Corporate Taxpayer (CNPJ) of companies buying, storing, distributing, transporting, selling or reselling illegally extracted wood from Brazilian forests.

This bill also provides that recidivist companies shall have their CNPJ cancelled. In Brazil, when a company has no CNPJ, it is unable to purchase or to sale goods or to enter into contracts. It also states that if the CNPJ is canceled, the managing partner, the shareholders and those responsible for the company shall remain prohibited from doing trade or business in general. Brazilian Law n. 9.605/98 already provides sanctions for people buying, selling, transporting or storing illegal timber: six months to one year of imprisonment. Since this bill deals with companies, the established sanctions are fine and the confiscation of the goods. The legislative bill aims to expand the liability of companies not complying with the environmental regulations and therefore provides a more severe punishment than the usual. The Congress has given conclusive status to the said bill, and it shall be reviewed by the Environment and Sustainable Development Committee, the Finance and Taxation Committee, the Constitution and Justice Committee and, at last, by the Citizenship Committee of the Congress. Belo Horizonte City Hall creates the Special Projects Execution Core for Works listed on BHs Environmental Recovery Project On April 20th, 2011, it was published the Decree n. 14.388 establishing a Special Projects Execution Core for the Works listed on BHs Environmental Recovery Project (NEPE), at SUDECAP, the municipal entity responsible for infrastructure projects in Belo Horizonte. The Decree sets the NEPEs duties and regulates the Core composition on ten public employees. It also sets that the
Natal | Brasil R. Paulo Barros de Ges, 1840 cj. 1301 59064-460 Natal | RN Tel.: +55 (84) 3206-1278 Fax: +55 (84) 3606-0778

Rio de Janeiro | Brasil Av. Presidente Vargas, 417 - 2 andar 20071-003 Rio de Janeiro | RJ Tel.: +55 (21) 2223-1504 Fax: +55 (21) 2223-1504

Belo Horizonte | Brasil R. Maranho, 1694 - 3 andar 30150-331 Belo Horizonte | MG Tel.: +55 (31) 3227-5566 Fax: +55 (31) 3227-3669

CORPORATIVE LAW

So Paulo Rio de Janeiro Belo Horizonte Natal

So Paulo | Brasil Av. Brigadeiro Faria Lima, 1461 - 16 andar Torre Sul 01452-002 So Paulo | SP Tel.: +55 (11) 2714-6900 Fax: +55 (11) 2714-6901

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NEPE is to last for two years and that its members may be replaced at any time by SUDECAP. The NEPE is responsible for planning, monitoring and auditing the actions of venture under its jurisdictions, as well as controlling and monitoring its process. The decree came into force on the date of its publication.

Rio de Janeiro | Brasil Av. Presidente Vargas, 417 - 2 andar 20071-003 Rio de Janeiro | RJ Tel.: +55 (21) 2223-1504 Fax: +55 (21) 2223-1504

Belo Horizonte | Brasil R. Maranho, 1694 - 3 andar 30150-331 Belo Horizonte | MG Tel.: +55 (31) 3227-5566 Fax: +55 (31) 3227-3669

Natal | Brasil R. Paulo Barros de Ges, 1840 cj. 1301 59064-460 Natal | RN Tel.: +55 (84) 3206-1278 Fax: +55 (84) 3606-0778