REVIEW OF FOLLOW-UP TO THE DISTRIBUTED GENERGY OF RENEVAABLE ENERGY INTEGRATED TO THE PUBLIC ENERGY Law 27424 Provisions. The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force
Law:
REVIEW OF FOLLOW-UP TO THE DISTRIBUTED GENERGY OF RENEVAABLE ENERGY INTEGRATED TO THE PUBLIC ENERGY
CHAPTER I
General provisions
ARTICLE 1. The purpose of this Act is to establish policies and establish legal and contractual conditions for the generation of renewable electricity by users of the distribution network, for their self-consumption, with possible injection of surpluses to the network, and to establish the obligation of public service providers to facilitate such injection, ensuring free access to the distribution network, without prejudice to the powers of the provinces.
ARTICLE 2. The distribution of electricity from renewable energy sources to self-consumption and the injection of potential surplus electricity to the distribution network, all under the technical guidelines set by regulation in line with federal electrical planning, considering energy efficiency, the reduction of losses in the interconnected system, the potential reduction of costs for the electrical system as a whole, as a matter of objective, the provision of free access to electricity, the provision of 41
ARTICLE 3. For the purposes of this Act, it is called:
(a) Net billing: the system that compensates for the costs of the electricity requested with the value of the electricity injected into the distribution network according to the billing system established by the regulation;
(b) Demanded energy: the power actually taken from the distribution network at the point of supply of the user-generator ' s home;
(c) Injected energy: the electrical energy actually delivered to the distribution network at the point of supply of the user-generator ' s home, in accordance with the principle of free access set out in Act No. 24,065, art. 56, para. (e);
(d) Jurisdictional regulator: the regulator, or control authority, responsible for controlling the activity of the providers of the public electricity distribution service in each jurisdiction;
(e) Distributed generation equipment: equipment and systems for the transformation of primary energy from renewable sources into self-consumption power, and which are connected to the distribution network in order to inject to that network the surplus energy generated;
(f) Measuring equipment: to the electrical power measurement system approved by the competent authority that must be installed for the purpose of measuring the required energy, generated and/or injected into the distribution network by the user-generator, being such measurements stored independently for further reading;
(g) Renewable energy sources: the energy sources set out in Article 2 of Law 27.191, National Development Regime for the Use of Renewable Energy Sources for the Production of Electrical Energy;
(h) Generation distributed: to the generation of electricity from renewable sources, by users of the public distribution service that are connected to the network of the service provider and meet the technical requirements established by the regulation to inject to that public network the surplus of the self-consumption;
(i) Provider of the public service for the distribution of electricity or distributor: to the figure created by Article 9 of Law 24.065, Electrical Energy Regime, responsible for supplying the electrical demand of end users in their area of competence;
(j) User-generator: the user of the public distribution service that has the power generation equipment of renewable sources in the terms of the preceding subparagraph (h) and that meets the technical requirements to inject to that network the surplus of the self-consumption in the terms established by this law and its regulation. Large users or autogenerators of the wholesale electric market are not included.
ARTICLE 4. Every user of the distribution network has the right to install equipment for the distributed generation of electricity from renewable sources to a power equivalent to that which the distributor has contracted for its demand, provided that it is within the framework of Article 6 of this Law and has the required authorization.
The user of the distribution network that requires installing a higher power than he or she has contracted for his or her request must apply for special authorization to the distributor, as defined by the regulation of the present.
ARTICLE 5. Every user-generator has the right to generate for self-consumption electric power from renewable sources and to inject their surplus power into the distribution network by meeting the technical requirements established by the regulation.
ARTICLE 6. For the purposes of this law, the regulation shall establish different categories of user-generator according to the magnitude of the contracted demand power and the capacity to install.
ARTICLE 7. Based on the sanction of the present, any project for the construction of national public buildings should include the use of a distributed generation system from renewable sources, in accordance with the use that can be made in the area where it is located, subject to the study of its environmental impact in the case of corresponding, in accordance with the regulations applicable in the respective jurisdiction.
The implementing authority will undertake a gradual study of existing national public buildings and propose to the agency on which the incorporation of an energy efficiency system depends, including generation capacity distributed from renewable sources according to the mechanisms provided for here.
CHAPTER II
Connection authorization
ARTICLE 8. The connection of the equipment for the distributed generation of renewable origin by the user-generator, for its self-consumption with injection of its surpluses to the network, must have prior authorization. The same will be requested by the user-generator to the distributor. The distributor shall be issued within the same time period as the local regulation establishes for the request of meters and may not refuse the request if it is to install certified equipment. Once the application is completed or rejected, the user-generator may direct the claim to the jurisdictional regulator.
ARTICLE 9 For the granting of the authorizations provided for in this chapter the jurisdictional regulatory entity shall provide for the distribution of a technical and security assessment of the proposal for the installation of distributed generation equipment, which shall be in accordance with the regulation of the present. It shall be formalized within the time limits provided for in each jurisdiction for the installation of meters.
The regulation shall provide for the measures to be verified in order to ensure the safety of persons and goods, as well as the safety and continuity of the service provided by the power distributor. In all cases, the user-generator must be guaranteed to participate in the authorization process, either by himself or through the authorizing technician.
ARTICLE 10. Once the technical evaluation has been approved, the user-generator and the distributor will sign an electrical generation contract under the distributed modality according to the general guidelines that determine the regulation of the present. The instrument will contemplate any additional bonus you will receive for the saving of consumption, for the energy you will use in periods that do not inject the network, as well as the way in which the value of your contribution to the network will be determined.
ARTICLE 11. Once the authorization is obtained by the user-generator, the distributor will connect and install the measuring equipment and enable the installation to inject energy into the distribution network. The costs of the measuring equipment, its installation and the works necessary to allow the connection to the network should be solved by the user-generator provided that those do not constitute an obligation of the distributors under the law 24.065 and/or the respective concession contracts. They may not mean additional costs for other users connected to the same distribution network.
The cost of the installation and connection service, in no case may exceed the tariff set for change or installation of a meter such as the request for a new supply or a change in tariff.
In case of disputes, the user-generator may direct the claim to the jurisdictional regulator.
CHAPTER III
Billing scheme
ARTICLE 12. Each distributor shall calculate the compensation and administer the remuneration for the energy injected into the network of the distributed generation of electric energy from renewable sources under the net billing balance model based on the following guidelines:
(a) The user-generator will receive an injection fee for every kilowatt-hour that delivers to the distribution network. The price of the injection rate will be established by the regulation in a manner consistent with the seasonal price for each type of user that the distributors must pay in the wholesale market (MEM) according to Article 36 of Law 24.065, and its regulations;
(b) The value of the injection rate of each user-generator will be governed from the time of installation and connection by the corresponding measuring equipment distributor;
(c) The distributor will reflect on the billing that usually emits by the power service provided to the user-generator, both the volume of the energy demanded and that of the energy injected by the user-generator to the network, and the prices corresponding to each one per kilowatt-hour. The value to be paid by the user-generator will be the result of the net calculation between the monetary value of the energy demanded and that of the energy injected before taxes. No additional tax charges may be made on the energy provided to the system by the user-generator.
Faccinate the Federal Public Income Administration (AFIP) to dictate the complementary rules necessary to implement and regulate the tax aspects corresponding to the provisions of this paragraph;
(d) If there is a monetary surplus for the kilowatt-hour injected in favor of the user-generator, it will set up a credit for the billing of the following periods. If such credit persists, the user-generator may request the distributor to pay back the favorable balance that may have been accumulated within a period to be determined by regulation, which shall not exceed six (6) months. The procedure for obtaining it shall be defined in the regulation of the present;
(e) In the case of a user-generator identified as consortium of co-owners of horizontal property or real estate set, the credit will be owned by such consortium of co-owners or real estate set;
(f) The regulation will establish mechanisms and conditions for the transfer or transfer of credits from energy injection between users of the same distributor.
The distributor will not be able to add any additional charge for network maintenance, access toll, electric backing or any other concept associated with the installation of distributed generation equipment.
ARTICLE 12 BIS: The profits derived from the distributed electrical injection activity, generated from renewable sources of energy, by the Users-Generators who have 300kw of contracted power maximum and who meet the requirements and other authorizations specified in this norm and in its regulation, shall be exempt from the tax on profits. The sale by injected energy will also be exempt from the value added tax in equal conditions and with the same requirements set out above.
(Article 314 of the Act No. 27430 B.O. 29/12/2017. Watch: from the day after the date of publication in the Official Gazette) CHAPTER IV
Implementation authority
ARTICLE 13. The implementing authority shall be designated by the National Executive and shall have the following functions:
(a) Establish the technical and administrative standards necessary for the approval of projects for the distribution of electricity from renewable sources by the user-generator. In order to develop technical standards, you must contemplate, at least: the safety of people and goods, the continuity and quality of the service, the quality of the product and the power allowed for each user-generator by defining its method of calculation. In all cases both the rules for the regulation and certification of equipment and the premises that set the requirements for the installers will be based on the IRAM or similar provisions;
(b) Establish rules and guidelines for network connection authorization that will be requested by the user-generator to the distributor;
(c) Establish the information requirements and time limits to be provided by the distributor and/or jurisdictional regulator;
(d) To act as a fiduciant in accordance with Chapter V of the present;
(e) Develop jointly with other active political ministries to promote the promotion of the national equipment industry for the generation distributed from renewable energies, such as for the acquisition and installation of equipment by users-generators;
(f) Promote the establishment of industries for the manufacture of equipment for the generation distributed from renewable sources in existing industrial clusters or to be created;
(g) To establish in conjunction with other ministries the training and training policy required by industry;
(h) Establish the value of the injection rate;
(i) Apply by regulation the appropriate promotional benefits for the development of distributed generation as set out in Chapter VI;
(j) Establish the general guidelines for electrical generation contracts under the distributed modality to which the distributor and the user-generator are to subscribe;
(k) Establish, through IRAM or similar standards, the criteria for certification of distributed equipment and generation systems taking into account their quality, installation and performance;
(l) Assess the design and implementation of a programme for the implementation of distributed generation in national public buildings, establishing the mandatory minimum contribution of the systems to be installed;
(m) Establish mechanisms and conditions for transfer or transfer of credits from energy injection among users of the same distribution network;
(n) Establish the mechanisms to adapt to this law the situation of those electrical power generation equipment from renewable sources that, at the time of entry into force of this law, are already integrated into the distribution network.
ARTICLE 14. It shall be up to jurisdictional regulatory bodies to monitor compliance with the provisions set out in this Act in their areas of competence.
ARTICLE 15. The present law, its regulations, technical standards as well as requirements established by the general authority of application shall govern throughout the national territory. The local jurisdictional provisions to be made should seek not to alter the normal provision in the National Interconnected System and the Majorist Electrical Market.
CHAPTER V
Trust Fund for the Development of Distributed Generation
ARTICLE 16. Please refer to the public trust fund known as the Fund for the Distributed Generation of Renewable Energies, FODIS or the Fund, which will be formed as a trust of administration and finance, which will govern throughout the territory of the Argentine Republic with the scope and limitations set out in this Act and the regulatory rules issued by the Executive Branch.
ARTICLE 17. The Fund will aim at the implementation of the Trusted Goods for the Granting of Loans, Incentives, Guarantees, the Making of Capital Contributions and the Acquisition of Other Financial Instruments, all aimed at the implementation of generation systems distributed from renewable sources.
ARTICLE 18. Seize the national State, through the enforcement authority, as a trustee and trustee of the Fund and the public bank selected by the trustee.
Human persons domiciled in the Argentine Republic and legal persons registered in the country whose distributed generation projects have been approved by the Fund ' s authorities and comply with the provisions of the Regulations.
ARTICLE 19. The FODIS will have a heritage consisting of the following trustees:
(a) Resources from the national budget approved annually by the Congress of the Nation, which may not be less than fifty percent (50%) of the actual savings in fossil fuels due to the incorporation of generation distributed from renewable sources obtained in the previous year, in accordance with the estimate made by the implementing authority;
(b) Recovering capital and interest from the funds granted;
(c) The production of its operations, the income, fruits and investment of the trustees, contributions, subsidies, legacies or donations accepted by FODIS;
(d) Resources from contributions from multilateral lending agencies;
(e) Revenue from issuance of trust values issued by the trustee on behalf of the Fund. To that end, the Fund may request the endorsement of the National Treasury in the terms established by the regulation.
For the first year of the entry into force of this law, the FODIS shall be allocated a budget of pesos of five hundred million ($ 500,000.000). The Chief of Staff of Ministers shall have the appropriate budgetary adjustments for the purpose of implementing the provisions of this provision, through the reassignment of national budget items for the year of entry into force of the present.
It is established that from the second year of the present regime, the total amount of budgetary allocation should be included in the total budget allocation in the previous year and that are necessary for the continuity or completion of approved and ongoing projects.
ARTICLE 20. At any time during the validity of the FODIS, the portions of the trust contract may structure it through different public trusts, integrated, with the trustees provided for in the previous article, with the following specific and exclusive destination:
(a) To finance and ensure the collection of the instruments established in article 21;
(b) Ensure the repayment of funds granted by third parties in accordance with the present; and
(c) Emit representative debt values.
Trusted assets that integrate such trusts cannot be applied to the payment of obligations other than those provided for in each of them, guaranteeing the separation of assets to safeguard the correct performance of the FODIS in compliance with its purposes.
ARTICLE 21. In order to comply with its object, FODIS will be able to implement the instruments listed below in order to enable the acquisition and installation of capital assets provided for in this Act:
(a) Provide funds and provide facilities through loans;
(b) Bonding or subsidizing percentage points of the interest rate of credits to which financial entities or other financing providers are involved. In this case, the risk of credit will be assumed by such entities, which will be in charge of the credit risk assessment;
(c) To provide incentives for energy injection generated from renewable sources and/or bonuses for the acquisition of distributed generation systems from renewable energy established in regulation.
(d) Financing outreach, research and development activities related to potential applications of such technologies. Preference will be given to the allocation of funding to those research undertakings that are located in regions of the country with less relative development.
ARTICLE 22. Both FODIS and the trustee, in their operations relating to FODIS, as well as debits and/or credits for the accounts used by public trust funds that are structured within the framework of FODIS and the trustee in their operations relating to such accounts, shall be exempt from all existing national taxes, fees and contributions and to be established in the future. This exemption provides for the taxes of laws 20,628, 25.063, 25,413 and 23,349 and other domestic taxes that may correspond.
ARTICLE 23. The implementing authority shall be empowered to issue the regulatory, clarification, amendment and supplementary rules that are relevant to the administration of the Fund, and to apply the appropriate penalties, as well as to replace the trustee.
ARTICLE 24. Please refer to the implementing authority to sign the trust contract with the trustee.
CHAPTER VI
Promotional benefits
ARTICLE 25. The implementing authority shall establish the instruments, incentives and benefits in order to promote the distributed generation of electricity from renewable sources, which will be implemented through FODIS, corresponding to the users-generators who strongly demonstrate compliance with the requirements set out in this Act and its regulations.
The definition of such instruments, incentives and benefits will be made taking into account, among others, the following criteria: the cost of energy generated and/or injected, the installed power, the market value of the equipment, differentiation for technologies, time difference and/or regional conditions.
ARTICLE 26. The Fund will establish promotional benefits in the form of capital cost bonus for the acquisition of distributed generation systems from renewable sources. This bonus will be established on the basis of the power to install as established by the regulation of the present for each technology. At least one third of the amounts affected to the instruments, incentives and benefits it establishes should be allocated to residential single-family housing enterprises, which may affect the remaining unused fiscal year for other purposes.
ARTICLE 27. The Fund shall make an additional incentive price for the energy generated from renewable sources, regardless of the injection rate established in the present. This incentive price will be set for limited time and its values adjusted according to what is established in the regulations and complementary standards, based on the costs avoided for the electrical system as a whole. This incentive price will be set in proportion to all contributors to the system according to the energy generated and will not affect more than twenty percent (20%) of the Fund's resources.
ARTICLE 28. The enforcement authority may implement a promotional benefit in the form of a tax credit certificate to be applied to the payment of national taxes, for a value to be established through the regulation of the present and taking into account the criteria set out in the previous article. The total amount of the tax credit certificate may not in any case exceed 50 per cent (50%) of the cost of fossil fuel displaced during the lifetime of the distributed generation system, according to the estimate made by the application authority.
The tax credit certificate shall be nominative and intransferable, and may be applied by the beneficiaries to the payment of all the amounts to be paid in the form of tax on profits, tax on the presumed minimum profit, value added tax, internal taxes, in the form of affidavit balance and advances, whose collection is carried out by the Federal Public Income Administration.
For the year of entry into force of this law, a tax quota of two hundred million pesos ($ 200,000) is established to be assigned to the promotional benefits provided for in this article. Benefits shall be assigned in accordance with the procedure established by the regulation for that purpose.
In the event that the fiscal quota provided for in the preceding paragraph is not fully allocated in the current period of entry into force of the present paragraph, the same shall be automatically transferred to the following period.
ARTICLE 29. The implementing authority shall establish priority differential benefits for the acquisition of generation equipment distributed from renewable sources of national manufacture, provided that they meet the national aggregate value integration requirements established by regulation. In these cases, the benefits will be established on the basis, the percentage of national aggregate value and will be at least twenty percent (20%) higher than established by the general regime.
ARTICLE 30. The validity of the promotion regime is established for twelve (12) years from the regulation, regardless of the credit periods established by the enforcement authority, which are equally extended by the national executive branch.
ARTICLE 31. The promotional tools and benefits of the FODIS mentioned in this chapter may not be accepted by persons within any of the following situations:
(a) Declared in a state of bankruptcy, in respect of which the continuity of exploitation has not been provided, in accordance with law 24,522 and its amendments, as appropriate;
(b) Complaints or complained criminally by the then Directorate General Impositiva, under the former Treasury Secretariat of the then Ministry of Economy and Public Works and Services, or the Federal Public Income Administration, an autonomous entity within the scope of the Ministry of Economy and Production, on the basis of Law 24,769 and its modifications, as appropriate, in respect of which the corresponding tax requirement for lifting to trial has been formulated prior to the entry into force
(c) Pronunciated formally or criminally charged for ordinary offences that have connection with the breach of their tax obligations or that of third parties, in which respect the corresponding tax requirement for lifting to trial has been formulated prior to the entry into force of this law and are being prosecuted;
(d) Legal persons, including cooperatives, where appropriate, their partners, administrators, directors, trustees, members of monitoring councils, or those holding equivalent positions therein, have been formally denounced or criminally charged for common crimes that have connection with non-compliance with their tax obligations or that of third parties, in respect of which the corresponding tax requirement for lifting to trial has been brought into effect prior to the entry into force of the law.
The occurrence of any of the circumstances referred to in the preceding subparagraphs, produced after the acceptance of this regime, shall be a cause of complete expiry of the treatment agreed upon in the same.
CHAPTER VII
National Industry Development Scheme
ARTICLE 32. Trust the Development Regime for the National Manufacturing of Systems, Equipment and Inputs for Generation Distributed from renewable sources, henceforth FANSIGED, in the orbit of the Ministry of Production or agency that replaces it in the future.
This Regime is applicable throughout the territory of the Argentine Republic and will be effective for ten (10) years from the sanction of the present, which is equally extended by the national executive branch.
ARTICLE 33. The activities included in FANSIGED are: research, design, development, investment in capital goods, production, certification and installation services for the distributed generation of energy from renewable sources.
ARTICLE 34. The following instruments, incentives and benefits are members of FANSIGED:
(a) Tax credit certificate on investment in research and development, design, capital assets, certification for manufacturing companies. The same will be of nominative and transferable character for the only time and will have a validity of five (5) years counted from its issue. The tax credit certificate shall be applied to the payment of national taxes, for the total amount to be paid in the amount of tax on profits, tax on the presumed minimum profit, tax on the aggregate value, internal taxes, with the exception of those levies for social security, in the form of affidavit balance and advances, whose collection is carried out by the Federal Public Income Administration, for a value to be established through the present regulation. The tax credit certificate may not be applied to the payment of debts prior to the date of issuance of the same. Any balances in favour shall not result in refunds or returns by the national State;
(b) Accelerated repayment of income tax, acquisition of capital assets for the manufacture of equipment and inputs for distributed energy generation from renewable sources, with the exception of cars. Such amortizations shall be practiced from the fiscal period of the granting of good, in accordance with the rules provided for in article 84 of the Law on Taxation of Gains, a text ordained in 1997 and its modifications, in the conditions established by the regulation;
(c) Advance return of the value-added tax by the acquisition of the assets referred to in subparagraph (b). shall be credited against other taxes by the Federal Public Income Administration, within the time limit, conditions and guarantees established by the regulation of this Act;
(d) Access to investment financing with preferential rates. The implementing authority will make available the FONAPYME Financing Lines Productive Investment, FONDEAR Renewable Energies, and the productive investment lines promoted by the Ministry of Production or the body that a future replaces it. The requirements for access to the above-mentioned financing lines will be those defined in the bases and conditions of the same;
(e) Access to the Providers ' Development Programme, with the objective of strengthening the capacities of the productive sector, through investment promotion, improvement in the productive management of enterprises, increased innovative capacity, technological modernization, with the aim of replacing imports and promoting the generation of qualified employment. Companies that meet the criteria of the Programme may access their financial assistance benefit lines at a subsidized rate, technical assistance and non-reimbursable contributions.
The implementing authority shall establish the minimum percentage of the composition of national raw materials and inputs required for the beneficiaries of this regime, not being able to be less than twenty-five per cent (25%) during the first three (3) years of the law and forty per cent (40%) thereafter.
ARTICLE 35. The micro, small and medium-sized enterprises established in the Argentine Republic may be attached to the present regime, which operate as one of the main activities of Article 33 of this Law.
They are excluded from the benefits set out in article 34 (a), (b) and (c), medium-sized enterprises section two according to law 25.300 and its amendments; and legal persons, constituted in accordance with the corporate laws of the Argentine or foreign nation, whose social capital, in proportion exceeding twenty-five per cent (25 per cent), is owned by natural or legal persons of foreign nationality.
ARTICLE 36. The FANSIGED will have an annual tax quota for the allocation of the tax credit certificate benefit according to the general budget law of the national administration set for this purpose.
For the year of entry into force of this Act, a tax quota of two hundred million pesos ($ 200,000) is established to be assigned to the promotional benefits provided for in this chapter. Benefits shall be assigned in accordance with the procedure established by the regulation for that purpose.
In the event that the fiscal quota provided for in the preceding paragraph is not fully allocated in the current period of entry into force of the present paragraph, the same shall be automatically transferred to the following period.
ARTICLE 37. The benefits granted in this regime shall be given under the condition of approval of the safety and quality standards established in the regulation of the present. Failure to comply with the conditions set out in this paragraph will result in the loss of profits and the restitution of funds allocated more of their interests.
CHAPTER VIII
Penalties
ARTICLE 38. Failure on the part of the distributor of the established deadlines regarding requests for information and authorization, as well as the time frames for installing the meter and connection of the user-generator will be penalized and will result in compensation for the user-generator according to the penalties established by the jurisdictional regulator, not being able to be the same lower, in its economic value, to the provisions for delays in the connection of supply of users to the network.
CHAPTER IX
Supplementary provisions
ARTICLE 39. Article 5 of Act No. 25,019, replaced by article 14 of Act No. 26,190.
ARTICLE 40. Invite the provinces and the Autonomous City of Buenos Aires to accede to this law and to dictate the regulations for the application of the present in the field of its competence.
ARTICLE 41. Contact the national executive branch.
IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE TREAT DAYS OF THE MONTH OF NOVEMBER OF THE YEAR DOS MIL DIECISIETE.
ā REGISTRATE BAJO #27424 ā
MARTA G. MICHETTI. - EMILIO MONZO. - Eugene Inchausti. ā Juan P. Tunessi.
e. 27/12/2017 NĀ° 101064/17 v. 27/12/2017