Promotion And Development Of The Bioenergy

Original Language Title: Ley de Promoción y Desarrollo de los Bioenergéticos

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Decree issued by the Law on the Promotion and Development of Bioenergy

ENERGY SECRETARY

DECREE issuing the Law on the Promotion and Development of Bioenergy.

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

FELIPE DE JESUS CALDERÓN HINOJOSA, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

"THE GENERAL CONGRESS OF THE MEXICAN UNITED STATES, DECREES:

THE LAW ON THE PROMOTION AND DEVELOPMENT OF BIOENERGETICS IS TO BE SET OUT.

ONLY ARTICLE. The Law on the Promotion and Development of Bioenergy is issued:

LAW ON THE PROMOTION AND DEVELOPMENT OF BIOENERGETICS

TITLE I

CHAPTER I

GENERAL PROVISIONS

Article 1.- This Law is a regulation of Articles 25 and 27 of the Political Constitution of the United Mexican States. Mexican Republic and aims at the promotion and development of Bioenergetics in order to contribute to energy diversification and sustainable development as conditions that guarantee support for the Mexican countryside and establish the bases for:

I.         Promote the production of inputs for Bioenergy, from agricultural, forestry, algae, biotechnological processes and enzymatic activities in the Mexican countryside, without putting the country's food security and sovereignty at risk. compliance with the provisions of Article 178 and 179 of the Sustainable Rural Development Act.

II.        To develop the production, commercialization and efficient use of Bioenergy to contribute to the reactivation of the rural sector, the generation of employment and a better quality of life for the population; in particular those of high and very high marginality.

III.       Promote, in terms of the Law of Planning, regional development and that of the least-favoured rural communities;

IV.      To ensure the reduction of pollutant emissions to the atmosphere and greenhouse gases, using the international instruments contained in the Treaties in which Mexico is a party, and

V.       Coordinate actions between the Federal, State, Federal and Municipal Governments, as well as the competition with the social and private sectors, for the development of Bioenergy.

Article 2.- For the purposes of this Law:

I.         Agricultural and forestry activities: Primary production processes based on renewable natural resources, consisting of agriculture, livestock, aquaculture and forestry;

II.        Bioenergetics: Fuels obtained from biomass derived from organic matter of the activities, agricultural, livestock, silviculture, aquaculture, algae, fishery residues, domestic, commercial, industrial, micro-organisms, and Enzymes, as well as their derivatives, produced, by sustainable technological processes that comply with the specifications and quality standards established by the competent authority in the terms of this Law; taking into account the provisions of Article 1 fraction I of this order;

III.       Biodiesel: Fuel obtained by the transesterification of oils of animal or plant origin;

IV.      Biogas: Gas that is produced by the biological conversion of the biomass as a result of its decomposition;

V.       Bioenergy Commission: The Intersecretarial Commission for the Development of Bioenergy;

VI.      Ethanol Anhydrous: Type of ethyl alcohol which is characterised by very low water content;

VII.     Law: Law on the Promotion and Development of Bioenergy;

VIII.    Rural Development Law: The Sustainable Rural Development Law;

IX.      Inputs: These are the raw materials used in the production of Bioenergy, obtained from agricultural and forestry activities;

X.       Security Food: The timely, sufficient and inclusive supply of food to the population;

XI.      Sovereignty Food: The country's free determination in the production, supply and access of food to the entire population, based primarily on national production;

XII.     System National: The National System of Technology Research and Transfer for Sustainable Rural Development;

XIII.    SAGARPA: Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food;

XIV.   SENER: Secretary of Energy, and

XV.    SEMARNAT: Secretariat for Environment and Natural Resources.

Article 3.- The subjects referred to in Article 2 of the Rural Development Law, the ejidos, communities, and the producers of natural products from which I know are subject to this Law. can obtain biomass and, in general, any natural or moral person, who individually or collectively, carries out any activity related to the production, marketing and/or distribution, transport and storage of Bioenergy.

Article 4.- The authorities, within the scope of their respective competencies, will promote the development of the market by including the promotion of producer participation schemes and the free competition in the matters of this Law, in terms of the provisions of the Federal Law on Economic Competition.

Article 5.- In all the provisions of this Law, the provisions contained in the Organic Law of the Federal Public Administration, the Law of Rural Development, will apply. Sustainable, the General Law of Ecological Balance and Protection of the Environment, the General Law of Wildlife, the General Law of Sustainable Forest Development, the Law of Planning and the other related Laws and Regulations that regulate the matters of this Law, as well as the international treaties of which Mexico is a party.

TITLE II

OF THE AUTHORITIES AND COORDINATION BETWEEN FEDERAL, STATE AND MUNICIPAL GOVERNMENTS

CHAPTER I

GENERAL PROVISIONS

Article 6.- The interpretation for administrative purposes and the application of this Law is the responsibility of the Federal Executive, through the Secretariat of Energy, the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food and the Secretariat of Environment and Natural Resources, in the field of their competencies.

Article 7.- In the framework provided for in the Political Constitution of the United Mexican States, the Federal Executive, in coordination with the Governments of the Federative Entities, The Federal District and the Municipalities, will promote the policies, programs and other actions that it considers necessary for the fulfillment of this Law.

To this end, the Federal Executive, through its agencies and entities, will be able to sign coordination agreements with the governments of the federal entities, the Federal District, and the municipalities, in order to establish the basis for participation, in the field of their competences, in order to implement the actions necessary to comply with this Law.

CHAPTER II

OF THE INTERSECRETARIAL COMMISSION FOR THE DEVELOPMENT OF BIOENERGETICS

Article 8.- The Bioenergy Commission is created, which will be made up of the owners of the SAGARPA, SENER, SEMARNAT, the Economy Ministry and the Secretariat of Finance and Public Credit, which will have the following functions:

I.         Participate in the framework of the National Development Plan and the sectoral programs, in the development of short, medium and long-term programs related to the production and marketing of inputs, and with the production, storage, transport, distribution, marketing and efficient use of Bioenergy. In terms of production and marketing of inputs, the opinion of the Intersecretarial Commission for Sustainable Rural Development will be heard;

II.        Establish the bases and guidelines for the subscription of agreements or coordination agreements between the federal, state and municipal governments, to comply with this Law, the programs and the provisions that derive from it, as regards the production and marketing of inputs, and the production, storage, transport, distribution, marketing and efficient use of Bioenergy;

III.       To establish the basis for the participation of the social and private sectors in order to comply with this Law, as well as the programs and provisions deriving from it, regarding the production and marketing chains of inputs, and to the production, storage, transportation, distribution, marketing and efficient use of Bioenergy;

IV.      Follow up on the programs derived from this Law, relating to the production and marketing of inputs, and the production, storage, transportation, distribution, marketing and efficient use of Bioenergy, as well as establish the indicators to determine the degree of compliance of the indicators. As regards the production and marketing of inputs, the Intersecretarial Commission for Sustainable Rural Development will be heard;

V.       To follow up on the commitments made by the Federal, State and Municipal Governments, as well as by the social and private sectors, in terms of production and marketing of inputs and production, storage, transport, distribution, marketing and efficient use of Bioenergy;

VI.      Promote the necessary agro-industry and investment and infrastructure, as well as the use of efficient technologies for the production and marketing of inputs and for production, storage, transport, distribution, the marketing and efficient use of Bioenergy;

VII.     Propose the programmatic and budgetary guidelines to be taken into account by the agencies and entities of the Federal Public Administration, to carry out activities and support the production and marketing of inputs, and production, storage, transport, distribution, marketing and efficient use of Bioenergy;

VIII.    To monitor the annual budget in this area and to evaluate the programmes and other support instruments, without prejudice to the responsibilities of the Secretariats of Finance and Public Credit and the Civil Service;

IX.      Promote the coordination of actions of the Dependencies and Entities of the Federal Public Administration, regarding the production and marketing of inputs, and the production, storage, transportation, distribution, the marketing and efficient use of Bioenergy;

X.       Review the congruence of the Mexican Official Standards, regarding the production and marketing of inputs, and the production, storage, transportation, distribution, marketing and efficient use of Bioenergetics;

XI.      Provide elements for the production, marketing and use of renewable energy in the design and formulation of national policies related to the matters of this Law;

XII.     Define priorities and criteria for the allocation of federal public expenditure for the promotion and development of bioenergetics, which will include strategic areas and specific and priority programs to be granted special Budget attention and support, and in accordance with the provisions of Article 17 of this Law, and

XIII.    Define mechanisms for coordinating and linking activities between the different sectors of the Federal Public Administration and with the various productive sectors in the country, as well as proposing mechanisms for coordination with institutions federatives and municipalities;

Article 9.- The head of the Federal Executive will appoint among the members of the Bioenergy Commission who will preside over it.

Article 10.- The Bioenergy Commission will exercise the functions provided for in this chapter, through the dependencies that integrate it, taking advantage of its structures administrative, so its functioning does not involve budgetary affectation, nor the establishment of additional administrative units.

CHAPTER III

OF THE COMPETENT AUTHORITIES

Article 11.- For the purposes of this Act, the SAGARPA shall have the following powers:

I.         To develop in the framework of the Law of Planning the sectoral and annual programs, relating to the production and marketing of the Insured;

II.        Regulate and, where appropriate, issue Mexican Official Standards regarding the requirements, characteristics, safety measures and other relevant aspects for the sustainable production of Insured, as well as control and monitor their due compliance;

III.       Periodically evaluate the impact on security and food sovereignty and rural development, of the programs derived from this Law, including a cost-benefit analysis and carry out the necessary actions for this information is of a public nature;

IV.      Develop the Sustainable Production Program for Bioenergy and Scientific and Technological Development;

V.       Impose penalties for violations of applicable laws and provisions resulting from actions related to the implementation of this Law;

VI.      Advise producers to develop crops for the sustainable production of inputs to produce Bioenergetics, to be carried out in accordance with the practices that scientific and technological research advises;

VII.     Support the organization of producers and other agents related to the production of inputs to produce Bioenergy, through mechanisms of communication, consultation and planning, and

VIII.    Grant prior permits for the production of bioenergy from corn grain in its various modalities, which will be granted only when there are surplus inventories of domestic corn production to satisfy consumption. national.

Article 12.- For the purposes of this Law, SENER will have the following powers:

I.         To develop, within the framework of the Planning Law, the sectoral and annual programmes relating to the production, storage, transport, distribution, marketing and efficient use of Bioenergy;

II.        Regulate and, where appropriate, issue Mexican Official Standards on the requirements, characteristics, safety measures and other relevant aspects, in relation to production, storage, transport, distribution, marketing and efficient use of Bioenergy, as well as controlling and monitoring its due compliance;

III.       Grant and revoke permits for production, storage, transportation, and pipeline distribution, as well as the commercialization of Bioenergy;

IV.      Issue the criteria and guidelines for granting the permits referred to in the previous fraction;

V.       To issue the necessary regulation to promote the use of the most appropriate technologies for the production, storage, transportation, distribution, marketing and efficient use of Bioenergy;

VI.      To issue the criteria for the acquisitions of the Bioenergy by the parastatals, in order to fulfill the objectives of this Law, minimizing the economic and budgetary impact to them;

VII.     Propose to the Secretariat of the Economy, in the field of its powers, the policies, instruments, criteria and other actions that it considers necessary for the best development of the Bioenergy;

VIII.    Establish the Bioenergy Introduction Program, considering objectives, strategies, actions and goals. For the elaboration of the Program, account will be taken mainly of the national production on the import, the definition of deadlines and regions for the incorporation of ethanol as a component of gasoline, and the incorporation of the biodiesel into the consumption as well as the infrastructure requirements for their production, transport and marketing.

This program will be able to incorporate other Bioenergetics that are the result of scientific and technological development.

IX.      Issue the guidelines, specifications and, in their case, Mexican Official Standards that establish the quality and characteristics of the Bioenergetics for their mixture with gasoline and diesel as well as those corresponding to ethanol blends with petrol, diesel with petrol, diesel with biodiesel or ethanol and biodiesel without mixtures when required by the market and are technologically and environmentally recommended;

X.       To issue normativity regarding the optional arbitration procedure for the resolution of disputes provided for in Article 30 of this Law;

XI.      To assess the impact, on the energy balance, of the programs derived from this Law, including a cost-benefit analysis and to carry out the necessary actions to make such information public, and

XII.     To impose penalties for violations of this Law and other provisions resulting therefrom in respect of the production, storage, transport, distribution, marketing and efficient use of Bioenergy.

Article 13.- For the purposes of this Act, SEMARNAT, shall have the following powers:

I.         Prevent, control or prevent contamination of the atmosphere, waters, soils and sites caused by the activities of production of the Insured and Bioenergy, as well as the discharges of pollutants to the bodies of national waters that are generate by them;

II.        To evaluate and, if necessary, authorize in the matter of environmental impact the facilities for the production, storage, transport, distribution and marketing of Bioenergy, in accordance with the legal provisions applicable;

III.       Implement the regulations on forest, wildlife and biosafety of genetically modified organisms as provided for in the Biosafety Law on Genetically Modified Organisms to ensure preservation, restoration and sustainable use of natural resources and biodiversity in the activities covered by this Law;

IV.      Monitor for the failure to change the use of forest land to agriculture in order to establish crops for the production of Bioenergetics;

V.       Evaluate the sustainability aspects of the programs derived from this Law for the development of the production of the Insured and Bioenergy products, as well as the impact of these programs and consequently take the corresponding measures the results obtained;

VI.      Regulate and, where appropriate, issue Mexican Official Standards regarding the requirements, characteristics, safety measures and other aspects that it considers relevant, in order to ensure protection of the environment, in relation to the activities provided for in this law, as well as monitoring their due compliance, and

VII.     Monitor and inspect compliance with environmental laws and regulations, as well as order security measures and sanction for violations of these laws, resulting from actions related to the application of this Law.

Article 14.- The programs, projects and other actions that, in compliance with the provisions of this Law and because of its competence, correspond to the Dependencies and Entities of the Federal Public Administration, shall be subject to the budgetary availability to be approved for such purposes in the Federation's Government Budget and the provisions of the Federal Law on Budget and Liability I'd make.

TITLE III

OF INSTRUMENTS FOR THE DEVELOPMENT AND PROMOTION OF BIOENERGETICS

CHAPTER I

OF THE INSTRUMENTS

Article 15.- The Federal Executive, through its Dependencies and Entities, within the scope of their respective competencies, will implement the necessary instruments and actions to to promote the sustainable development of the production and marketing of Insured, as well as the production, transportation, distribution, marketing and efficient use of Bioenergy.

Article 16.- The instruments and actions referred to in the previous article, the procedures and rules for implementing, accessing or obtaining the same, shall be defined by the programmes which for this purpose issue the Dependencies in the field of their respective competences.

Article 17.- The Secretariats of the Bioenergy Commission, within the scope of their respective competencies, will develop and implement, where appropriate, the actions for the promotion of sustainable production of Insured.

These will be aimed at the producers of the Insured and should boost productivity, encourage the generation of jobs, motivate the creation and consolidation of rural enterprises, whose Share ownership of input producers is at least 30 percent, strengthening the competitiveness of the sector and ensuring the protection of natural resources.

In addition, in order to quantify the level or type of incentive that may be granted to make agricultural input production competitive in the production of Bioenergy, the Secretariats may consider the behaviour of the various prices-cost of inputs and exchange rates, as well as the return rate of return on average annual investment of the corresponding crop and the most appropriate among the support instruments such as the production conversion programmes, the coverage or the stimulus which, if appropriate, correspond. Budget supports will be channelled to projects where input producers are associated.

To diversify energy sources, the Federal Government will encourage the production of Bioenergy from inputs; based on the provisions of Article 1, fraction I, and Article 11 fraction VIII of this Law. The Federal Executive will also promote the coordination of actions with the state governments, the Federal District and the municipal governments for the same purposes.

Article 18.- To promote, develop and encourage the production of the Bioenergy, the Secretariats and the Governments of the Federal and Federal District, in the field of their respective competencies shall promote the creation of infrastructure for the production of Bioenergy.

The incentives will be aimed at people who contribute to the development of the Bioenergy industry and the modernization of its infrastructure, through the manufacture, acquisition, installation, operation or maintenance of machinery for the production of Bioenergy. They will also consider those who carry out technology research, whose application will reduce the generation of pollutant emissions to the atmosphere, water, soils, sites, as well as technological innovation in the plant Bioenergy production.

CHAPTER II

RESEARCH AND TRAINING

Article 19.- The SAGARPA and SENER will support scientific and technological research for the production and use of Bioenergy, as well as training in these materials and will have as their purposes essential:

I.         Encourage and develop scientific research for the sustainable production of inputs for the production of Bioenergy;

II.        Encourage and develop research into the production, distribution and use of Bioenergy technologies;

III.       Meet the information needs of the various competent authorities;

IV.      Establish evaluation procedures to determine the state of the viability of the projects for the production of Bioenergy, and

V.       Provide elements to determine the conditions in which the production of Bioenergy should be performed, so as to be carried out in equilibrium with the environment.

Article 20.- The Bioenergy Commission will establish the basis for promoting scientific and technological research, as well as training in the field of Bioenergy.

Article 21.- The National System of Technology Research and Transfer for Sustainable Rural Development, provided for in the Sustainable Rural Development Law, will be the to coordinate and guide scientific and technological research in the field of Insured, as well as the development, innovation and technology transfer required by the sector.

The System will count, for the purposes of this Act, with the following faculties:

I.         Conduct scientific and technological research on the subject of Insured;

II.        To issue an opinion of a technical and scientific nature for the administration and conservation of the natural resources associated with the production of the Bioenergetics;

III.       To coordinate the formulation and integration of the National Program of Scientific and Technological Research in the Subject of Insured for Bioenergy, based on the proposals of educational, academic and research institutions, universities, and producer organisations;

IV.      To coordinate the integration and operation of a national network of groups, research institutes and universities, in the field of Insured, for the articulation of actions, the optimization of human, financial and infrastructure resources;

V.       Provide scientific and technical advice to farmers, who so request, to conserve, repopulate, foster, cultivate and develop species associated with the production of Insured;

VI.      Support, develop and promote the transfer of the results of research and technology generated in an accessible way to the producers of the Insured;

VII.     To formulate studies and proposals for the management of the activity in coordination with research centers, universities, federal authorities, the governments of the Federal Entities;

VIII.    To promote and coordinate the participation and linkage of research centers, universities and institutions of higher education with the productive sector, for the development and implementation of applied and applied research projects. technological innovation in the field of Insured;

IX.      Formulate and execute training and training programs;

X.       To disseminate its activities and the results of its investigations, without prejudice to the rights of intellectual property and information that must be reserved in accordance with the Law of the Matter;

XI.      Disseminate and publish the results of the investigations they perform in accordance with the Federal Law on Transparency and Access to Public Information, and

XII.     The others expressly attribute to it this Law, its regulatory provisions, the official rules which it derives and the corresponding Laws and Regulations linked to the field of Bioenergy.

Article 22.- The System will promote and coordinate the integration of the National Information and Research Network in the field of Insured, in order to link and strengthen the scientific research and technological development, as well as the development, innovation and technology transfer for the management and administration of the natural resources associated with the production of Bioenergy and its orderly development.

Article 23.- The Federal Executive, through its Dependencies and Entities, within the scope of their respective competences, may conclude agreements with the public, social and private to promote scientific and technological research and training in the field of Bioenergy and its Insured, and will implement the instruments and actions necessary for this, in accordance with the provisions of this Law, programmes and other provisions deriving from it.

TITLE IV

OF PROCEDURES, VIOLATIONS, AND PENALTIES

CHAPTER I

OF THE PERMISSIONS

Article 24.- The activities and services related to the production, storage, transportation and distribution of pipelines, as well as the commercialization of Bioenergy, be subject to prior permission of the SENER, except those expressly excluded in the criteria and guidelines referred to in Article 12 of this Law. SENER will report to the Bioenergy Commission on the permits it has granted.

The guidelines and criteria referred to in the preceding paragraph shall include:

I.         Activities or services related to the production, storage, transportation and distribution of pipelines, as well as the commercialization of Bioenergy;

II.        The terms and conditions for:

a.      Granting, transferring, and revoking permits;

b.      The production of Bioenergetics;

c.      The storage of Bioenergetics;

d.      The transport and distribution by pipeline of Bioenergetics;

e.      The presentation of sufficient and adequate information for regulatory purposes, and

f.       The public consultation procedure for the definition of regulatory criteria, where appropriate;

III.       The procedures for monitoring compliance with the Mexican Official Standards and the terms and conditions set out in the permits;

IV.      Terms and procedures for the verification of installations and equipment of the permits, and

V.       Other regulatory instruments to lay down the applicable provisions, and those which the SENER considers necessary.

In addition, they will have to ensure transparency in administrative procedures regarding the granting of permits to carry out activities related to the matters governing the This Law should include control mechanisms accessible to producers.

The permits that the SENER issue must contain, in detail, the terms and conditions under which they will be issued and the procedures must be established with all precision in the Regulation of this Law.

CHAPTER II

OF VIOLATIONS AND SANCTIONS

Article 25.- These are considered violations of this Law:

I.         The carrying out of activities or the provision of services without the corresponding permission, where, in terms of this Law and the other applicable provisions, it is required;

II.        Failure to comply with the terms and conditions set in the permissions, and

III.       Non-compliance with Mexican official standards and other applicable Bioenergy provisions.

Article 26.- The violations referred to in the previous article will result in the following penalties:

I.         Fine of 1,000 to 100,000 times the amount of the daily minimum daily wage in force in the Federal District, on the date the fault is incurred, which shall be determined by the competent authority, taking into account the importance of the fault;

II.        Revocation of the permits referred to in section III of Article 12 of this Law, and

III.       Total or partial, permanent or temporary closure of installations.

Article 27.- Public Servants that violate the provisions of this Law, in the programs and other provisions deriving from it, shall be sanctioned in terms of the Federal Law on Administrative Responsibilities of Public Servants.

Article 28.- As expressly provided for in this Law and the other applicable provisions, the application and grant of the permits, and the imposition of sanctions to be This chapter shall be subject to the provisions of the Federal Law of Administrative Procedure.

CHAPTER III

OF DISPUTES AND DISPUTE SETTLEMENT

Article 29.- The controversies that arise from transactions along the production chains of the Insured, in terms of quality, quantity and opportunity of the products, financial services, technical services, equipment, technology and production goods, can be resolved through the National Arbitration Service provided for in Article 184 of the Sustainable Rural Development Law.

Article 30.- The controversies that arise from transactions and activities related to production, storage, transportation, distribution, the marketing and efficient use of Bioenergetics, can be solved through an optional arbitration procedure before the Energy Secretariat, in accordance with the regulations that for this effect issue.

Article 31.- Against the acts of authority issued on the occasion of the application of this Law, the programs and other provisions deriving from it, shall be subject to the provisions of the Federal Law of Administrative Procedure.

TRANSIENT

FIRST.- This Law shall enter into force on the day following its publication in the Official Journal of the Federation.

SECOND.- The Programs referred to in Articles 11 and 12 of Articles 11 and 12, respectively, shall be issued within a period not longer than six months from the date of the entry into force of this Law.

THIRD.- The Bioenergy Commission will be installed within the month following the entry into force of this Law, and will propose to the Federal Executive its Rules of Procedure, in a period not longer than three months, counted from the date of their installation.

FOURTH.- The Federal Executive shall issue the Regulations of the Present Law in a period no longer than nine months after the publication of this Law.

Mexico, D. F., as at 13 December 2007.-Dip. Ruth Zavaleta Salgado, President.-Sen. Santiago Creel Miranda, President.-Dip. Santiago Gustavo Pedro Cortés, Secretary.-Sen. Adrian Rivera Perez, Secretary.-Rubicas."

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I hereby express my request for the Decree at the Federal Executive Branch, in Mexico City, Federal District, thirty-one in January, two thousand eight.- Felipe de Jesús Calderón Hinojosa.-Heading.-The Secretary of the Interior, Juan Camilo Mourino Terrazo.-Heading.