CETESB publishes new regulation for sanctions application process

On May 29, 2020, the Environmental Agency of São Paulo State (“CETESB”) released Decision No. 055/2020/P (“DD 55”) which approves and establishes the new regulation for sanctioning processes at CETESB.

Among the main innovations brought by DD 55, we highlight the following:

1. Possibility of up to 30% reduction of amounts in fines

If the defendant decides to pay the fine, he may choose the following methods of payment:

i. 30% reduction of the amount for payment in a single installment;

ii. up to 30 installments with a 15% reduction of the amount; or

iii. up to 60 installments with payment of the full amount. The modalities of payment provided for in items (i) and (ii) will be available within the term stipulated in the fine payment slip; the modality provided for in item (iii) is available at any time until the registration of the fine in the outstanding debt liability roster.

It should be noted that “if there is no payment or no appeal, with the administrative res judicata, an addition of 1% per month will be applied to the amount of the fine from the due date of the payment slip until the month prior to the payment, as a default interest” (art. 12, II, “a” of DD 55).

2. Notification mode and electronic process

With the new regulation, only the initial Notice of Violation will be sent on paper (by post, with acknowledgment of receipt or other valid means), to ensure that the notification was duly received. All subsequent communications or developments will be sent electronically.

Therefore, the deadline for the presentation of defense and appeal will begin: (i) from the opening of the session contained in the “Comunique-se” notice, available on CETESB’s “e-ambiente” system; or (ii) automatically after 10 calendar days from the date of sending the electronic message to the address registered in CETESB system.

3. Reconsideration request

Before an appeal is directed to the higher authority (2nd instance), the judging authority (1st instance) will have the opportunity to review and reconsider the decision within 5 days.

Demarest’s Environmental practice is monitoring the legislative news, and is available to assist with more information and in the definition of measures to be adopted.