New regulation for environmental protection for electricity activities
On July 8, 2019, the new Regulation for Environmental Protection for Electricity Activities – RPAAE (Supreme Executive Order No. 014-2019-EM) came in force. RPAAE replaces the environmental regulation that governed the development of electricity activities in effect since June 1994. Therefore, RPAAE includes several amendments, the following being the most important:
– RPAAE facilitates rightly the “transfer” of environmental management instruments as a consequence of the transfer or assignment of electricity activity. For such purposes, it is sufficient to inform the pertinent environmental authority—Environmental Assessment and Control Agency (OEFA) and Supervisory Body of Investment in Energy and Mining (OSINERGMIN)—thereon.
– It sets forth environmental management instruments supplementary to those provided in the National Environmental Impact Assessment System, as follows: (i)Total Abandonment Plan (PAT); (ii) Partial Abandonment Plan (PAP); (iii) Reclamation Plan; (iv) Supporting Technical Report (ITS); (v) Remediation-Oriented Plan; (vi) Polychlorinated Biphenyl Environmental Management Plan; and (vii) Detailed Environmental (PAD).
– It regulates in details the process to be follow for total or partial abandonment of facilities, infrastructures or intervened areas as a consequence of the development of electricity activities. For such purposes, it provides that the approval of a PAT or PAP, as appropriate, shall be required and include actions that have to be implemented so the footprint area will reach environmental conditions similar to its reference ecosystem. It should be mentioned that PAT approval is subject to submitting a performance bond (i.e., letter of guarantee) of the commitments contained therein, equal to 50% of the total investments involved in the PAT execution.
– It includes provisions that allow the environmental enhancement of such electricity activities—as well as those extensions and modifications—having been conducted without an environmental certificate. For such purposes, RPAAE sets forth that individuals and corporations shall: (i) inform such situation to the General Division of Electricity Environmental Issues (DGAAE); and (ii)obtain a PAD approval. It is important to consider that the enhancement is carried out notwithstanding sanctions that might be imposed by OEFA.
– It regulates cases of exceptions that do not require the environmental management instrument to be amended nor an ITS to be approved to start its implementation upon a single notice to the pertinent environmental authorities and OEFA.
For further details, please contact Francisco Tong (ftong@estudiorodrigo.com), Jenny Caldas (jcaldas@estudiorodrigo.com) and/or Ursula Zavala (uzavala@estudiorodrigo.com).
