Castellán

On May 4th, Decree No. 135/021 was approved, which regulates Law No. 17.283 (“Environmental Protection Law”), and establishes air quality objectives and emission standards, both for fixed and vehicular sources, to prevent air pollution and protect the health of the population and ecosystems.

It also sets maximum emission limits and establishes certain obligations and prohibitions, including the requirement to have an Emission Authorization.

A) Air quality objectives

The release or emission into the atmosphere -either directly or indirectly- of substances, materials or energy above the maximum limits and parameters set by the Decree is expressly prohibited.

These parameters will govern the plans, programs, and actions to be carried out regarding the evaluation, regulation, authorization, and control of air pollution sources throughout Uruguayan territory, and will be applicable in two stages: the first from May 13, 2021, to December 31, 2023; and the second from January 1, 2024, onwards.

B) Emission standards for fixed sources

Regarding fixed sources, the Decree establishes “the maximum allowable concentration of gases or particles” derived from human activity “located in a specific geographical location” (“emission standards”).

However, environmental authorizations granted before May 13, 2021, which establish stricter emission standards or are set for other compounds not covered in the Decree, will remain valid.

Who is subject to these emission standards?

- Every specific fixed source (“building or installation where operations that result in the emission of compounds into the air through a chimney or similar are carried out”);

- New or existing as of May 13, 2021;

- Engaged in any area of activity. However, the Decree also sets specific emission standards for the following activities: (a) combustion for energy generation, (b) clinker and lime manufacturing, (c) clinker kiln co-processing, (d) paper and cellulose manufacturing, (e) sulfuric acid and fertilizer manufacturing, (f) petroleum refining, (g) metal smelting and steelmaking, and (h) waste incineration;
- Only small emitters of fixed sources defined by the Decree are exempt from complying with these standards.

What are the main obligations of the holders of fixed sources?

1. Have, maintain, and operate mechanisms to minimize emissions, implementing necessary mitigation measures.

2. Monitoring emissions (representative and secure throughout the measurement process) and submitting periodic reports on emission control and air quality.

3. Have the corresponding environmental authorization. Without prejudice to the Prior Environmental Authorization (AAP), the Special Environmental Authorization (AAE), and the Operating Environmental Authorization (AAO) -which remain valid-, the Decree establishes that for certain activities, an Emission Authorization must be processed.

Specifics of the Emission Authorization

- It will have a maximum validity of 3 years.

- For new sources (incorporated after May 13, 2021), it will be a prerequisite to start operations.

- Within a period not exceeding 3 years, existing sources as of May 13, 2021, must submit the corresponding adjustment plans and process the Emission Authorization when they did not have a prior AAO or AAE.

- The corresponding environmental authorizations do not exempt the holder of fixed emission sources from liability for any damage caused by them.

C) Emission standards for mobile sources

The Decree also establishes “the maximum values of gases and particles that an engine or vehicle can emit under standardized conditions” (“emission standards for mobile sources”), with the exception of aircraft, ships, and naval artifacts.

As of May 13, 2023, the import and commercialization of new vehicles that do not comply with the emission standards for mobile sources set will be prohibited.

This prohibition does not apply to vehicles in circulation as of May 13, 2023, or to vehicles entering the country temporarily (e.g. for competitions, exhibitions, or experimental projects).

The vehicle homologation criteria, as well as the procedure for monitoring and verifying compliance with standards, will be established by the Ministry of Environment -in coordination with the Ministry of Transportation and Public Works and the Ministry of Industry, Energy, and Mining-, and a vehicle labeling system may be created.

D) Non-compliance and penalties.

Finally, the Decree establishes a penalty regime for non-compliance with its provisions (which can amount to 100,000 Indexed Units), and identifies those behaviors that will be considered serious offenses (including operating without a valid Emission Authorization, failing to comply with monitoring obligations, or committing more than one “minor” offense).

E) What is the current status?

The Ministry of Environment is currently in the process of regulating the provisions of Decree No. 135/021, including establishing guidelines for processing Emission Authorization requests (which must be defined before November 13 of the current year) and conducting monitoring. To this end, on July 26, it made available to the public the instructions on Emission Monitoring, Sampling and Analysis Methods, which are in the validation stage and receiving comments or inquiries until August 27 (see: https://www.gub.uy/ministerio-ambiente/politicas-y-gestion/documentos-puestos-consideracion-para-reglamentacion-del-decreto-n-1352021)

Montevideo, August 2, 2021