Anderson Souza da Silva Lanzillo

Regulation of the Gas Industry

This chapter aims to present a general description and an analysis of the new regulatory framework applied to the Brazilian gas industry introduced by the Brazilian Gas Law (Federal Law No. 11.909/2009). The Brazilian Gas Law was the result of two main issues: the inadequacy of the Brazilian Oil Law (Federal Law No. 9.478/1997) to the gas industry and the lack of competition. The Brazilian Gas Law was devised to take account of these issues, and for this reason it has introduced several legal changes for the gas regulatory framework. The most changes were applied to gas transportation regulation by introducing the concession system as the primary means of a company to explore transportation activity, as well by introducing competition instruments (open access) in order to reduce entry barriers. Besides, the Brazilian Gas Law deals with other topics like import, export and distribution in order to replace or complement the legislation that already exists concerning these themes.

The Regulation of Oil and Gas Industry Concerning Exploration and Production in Presalt Layer

The present chapter aims to study the changes in Brazilian legal system concerning the oil and gas exploration and production in presalt layer. First, it analyzes the social, political, and economic factors that have arose initiatives in order to introduce a new regulatory framework for the presalt layer. Second, the chapter studies this new regulatory framework in a comparative way with the old one by focusing on the following topics: regulatory jurisdiction, bidding and contract system, and royalty payments. As a result, the new legislation concerning the presalt layer shows a more state-centric profile since Brazilian State has more powers to enforce a planning to the sector and more revenues concerning oil and gas production. However, this does not mean that the oil and gas industry in Brazil has returned to be a state-owned monopoly since the activities in general remain opened to be explored by private companies and the concession system is kept for nonpresalt layer areas.

Biofuel Regulation in Brazil

In this chapter, a general view about biofuel regulation in Brazil is provided. Unlike oil and gas sectors, Brazilian biofuel sector has no legislation that deals with biofuels in general. The legislation is fragmented and related to a specific kind of biofuels rather than the biofuels per se. This situation is due both to historical reasons (the arising of biofuel industry in Brazil) and to market reasons (competition with gasoline and diesel). Thus, the Brazilian legislation is the regulation of two kinds of biofuels: biodiesel and ethanol. The study shows the general rules applied to biofuels but deserves a special focus on biodiesel and ethanol legislation. As a result, Brazilian legislation provides more instruments to promote biofuels as a complementary fuel to the market than a standalone product to compete with diesel and gasoline.

Preventing Climate Disasters: Legal and Economic Aspects of the Implementation of the National Fund on Climate Change in Brazil

The scientific and technological development over the course of the 20th century has changed the conditions of human life substantially by creating new ways of social, communicational, and economic interaction around the world. However, this new way of life has altered the environment and generated the unwelcome phenomenon of climate change. Several environmental disasters are occurring around the world because of climate change. In Brazil, climate change has caused environmental disasters such as droughts and floods. Before this situation, many countries have enforced new legal norms at national and international level in order to face this challenge. According to this trend, Brazil is committed to enforce new environmental legal norms and has created the National Fund on Climate Change. Thus, the objective of this paper is to study the legal and economic aspects related to the National Fund on Climate Change taking into account Brazilian national policies and economic data available at the International Energy Agency and at the Brazilian Energy Balance.