ENVIRONMENTAL LICENSING IN BRAZIL

Environmental licensing is a legal requirement that precedes the construction, installation,

expansion and functioning of any large scale enterprise or activity deemed to be effectively or
potentially polluting, or which may cause environmental degradation (Article 1, Paragraph 1,
C!A"A #esolution !o$ %&' of (ecember 1), 1))'*$ +he main guidelines and standards for
environmental licensing in ,ra-il are set forth by .ederal /aw 0$)&1211 and by C!A"A
#esolutions !o$ 33121)10 and !o$ %&'21))'$
+he environmental licensing process must be assessed by a ,ra-ilian environmental body, be it
at federal, state or city level, and the licensing will set forth the conditions, restrictions and control
measures to be observed throughout the implementation and functioning of the activity$ At federal
level, the environmental license is granted by the ,ra-ilian Environment 4nstitute (4,A"A* in
accordance with Article 13 of /aw 0$)&1 of August &1st, 1)11 and Article 5 of C!A"A
#esolution !o$ %&' of (ecember 1), 1))'$
As per the applicable laws in ,ra-il, the environmental licensing process consists of three main
stages that lead to the following environmental licenses6 Preliminary /icense (/P*, 4nstallation
Permit (/4* and perating /icense (/*$ +o apply for each license, the environmental body
defines which environmental studies must be carried out and which documents must be
submitted by the applicant$ 7tudies to obtain the environmental license should be conducted by
qualified experts at the applicant8s expense$
,ased on this information, the environmental body establishes the standards specific to each
stage of the environmental licensing$ +hese standards should be properly met before applying for
the following environmental license, and so on$ +herefore, environmental licenses can be issued
individually or in succession, according to the nature, characteristics and phase of the enterprise
or activity (Article 1, 7ole Paragraph, C!A"A #esolution !o$ %&' of (ecember 1), 1))'*$
Preliminary License (LP)
4s the first phase of the environmental licensing process and should be applied for with the 4,A"A
(or any environmental oversight authority* during the implementation, improvement and
expansion stages$ +he main purpose of the Preliminary /icense is to authori-e the location and
design of the pro9ect, attest to its environmental viability and set forth the basic requirements and
standards to be met in the following phases of the licensing process, ta:ing into account the
different pro9ect alternatives and proposals submitted by applicants$
(uring the Preliminary /icense phase, the proposal for the +erm of #eference (+o#* should be
forwarded to the licensing body for preparation of environmental studies$ nce the +o# is
completed and approved, the applicant should then prepare the Environmental 4mpact 7tudy
(E4A* and the Environmental 4mpact #eport (#4"A* is required$ .ollowing submission of the
E4A2#4"A to the environmental body, with the corresponding authori-ation for the enterprise and
holding of a public hearing, the applicant may obtain a Preliminary /icense$
.or enterprises and activities without significant environmental impact, the environmental body
may cancel the Previous /icense phase, and require instead a 7implified Environmental 7tudy
and an Environmental Control Plan (Article &1 of !ormative 4nstruction !o$ 115 of ;uly 1', %331*$
Installation Permit (LI)
As the second phase of the environmental licensing process, the 4nstallation Permit authori-es
the installation of the enterprise2activity and the start<up of construction wor: in accordance with
the specifications contained in previously approved plans, programs and pro9ects, including
environmental control measures and other standards detailed in the ,asic Environmental (esign
(P,A*$
Oeratin! License (LO)
+his is the third and last phase of the environmental licensing process, which authori-es the
functioning of the enterprise or activity, following inspection of compliance with previous
environmental licenses, including environmental control measures described in the P,A$
At this point, applicants must submit the .inal 4mplementation #eport for the environmental
programs contained in the P,A and the 7urrounding Environment Conservation Plan (PAC=E#A*
for >ydropower Plants (>PP* and 7mall >ydroelectric Plants (PC>*, in accordance with
!ormative 4nstruction !o$ 30?2%33? issued by 4,A"A$ nce this is approved by the
environmental body, the perating /icense is then issued$
7ource6 4,A"A website @ Environmental /icensingA /aw !o$ 0$)&1 of August &1st, 1)11A C!A"A resolution !o$
%&'2)'A C!A"A #esolution !o$ 331210A !ormative 4nstruction !o$ 115231A !ormative 4nstruction !o$ 30?23?, the
latter two set forth by 4,A"A