Brazil's Commission of Agriculture and Agrarian Reform (CRA) approved today the bill 252/11 that seeks to encourage production of biofuels at micro plants, especially those operated by family farmers.
In Brazil, micro biofuel plants are those with a production capacity of up to 5,000 litres of biodiesel, ethanol or other renewable fuel.
The bill allows credit lines with small interest rates to be granted as an incentive to producers of biofuels at micro plants. Other benefits include the exemption from the PIS/Pasep and Cofins taxes and the Tax on Industrialised Products (IPI) for equipment and materials required for the installation and operation of micro systems.
Biofuels produced through small units can be traded directly with rural cooperatives and fuel distributors.
The bill is currently awaiting approval from the Chamber of Deputies.