Production and use of fuel ethanol in Brazil - BAFF

A3.3.
Are there any State regulations for the ethanol
used as a fuel?
Yes, but those regulations do not interfere with the industry’s production. The
regulations are made by the National Oil, Natural Gas and Biofuels Agency (ANP),
and, by operation of Laws no. 9,478/97 and no. 9,947/99; there are limited to:
a. specifying the quality of fuel ethanol, be it the one that is mixed with
gasoline (anhydrous grade) or that sold directly at fuel stations (hydrous
grade);
b. regulating fuel distribution and resale activities, including ethanol,
always observing the principles of free competition and preservation of
consumers’ interests.
It also is important to point out that the mandatory addition of anhydrous ethanol
to the gasoline marketed in Brazil, at a rate ranging from 20 to 25 percent, is set
forth by Federal Law no. 8,723/93, which provides for the reduction of pollutant
emissions from motor vehicles, i.e. the specification for the gasoline marketed in
Brazil requires the presence of ethanol in its formulation.
Today, the most relevant ANP statutes on ethanol are as follows:
a. ANP Resolution no. 36/2005, which provides for the specification for the
ethanol used as a fuel for motor vehicles in the Brazilian market, whether
anhydrous (added to gasoline) or hydrous. This statute introduced the
mandatory addition of an orange colorant to anhydrous ethanol so that it
can be distinguished from hydrous ethanol.
b. ANP Resolution no. 05/2006, which regulates the sale of ethanol to fuel
distributors.
A. Fuel ethanol: Activities in Brazil and the world context
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