Gustavo Cabral

ANEEL(National Electric Energy Agency) and federal legislation. The project also establishes possible benefits for the companies that benefit from it. These include maintaining a minimum percentage of electric vehicles in circulation, proving that some or all of the energy used comes from renewable sources, and submitting annual reports on energy efficiency and reduction of operating costs. Expanding photovoltaic energy is a priority. The measures for public transportation are part of a broader policy to encourage solar photovoltaic energy in the municipality. The objective is to stimulate the use, development and expansion of solar distributed generation (DG) in São Paulo (SP). Among the intended objectives are encouraging the installation of micro and mini-distributed generation systems, reducing greenhouse gas emissions, providing professional training, and generating green jobs. The policy also seeks to stimulate technological and scientific innovation in the sector, expand access to energy, and encourage energy efficiency projects in municipal government agencies and entities. The text also provides for incentives for the creation of solar power plants in public and community areas, and areas with greater generation potential. The guidelines also include support for companies and startups linked to renewable energies, financing or support for research and technological innovation, and attracting national and international investments in decarbonization solutions. The originally planned tax incentive was removed. The original project provided for a reduction of up to 20% in the Service Tax (ISS) rate for companies established in São Paulo that work in the preparation of projects, execution of works, installation of components and maintenance of photovoltaic solar energy systems. However, the Committee on Constitution, Justice and Participatory Legislation removed this tax benefit from the substitute bill presented along with the opinion. The municipal executive branch had also expressed its opposition to the project. Among the arguments presented are the risk of revenue loss without compensation, the existence of incentives already granted in other spheres of government, possible inconsistencies in the definition of beneficiaries, and the impacts on the municipal tax system during the implementation of the tax reform. Despite the objections, the Constitution, Justice and Participatory Legislation Committee understood that the proposal can continue to be processed from a legal standpoint, as long as it does not include the provisions related to the reduction of the ISS (Service Tax). The opinion also stipulates that at least two public hearings must be held during the legislative process, given that it is an environmental policy proposal with potential tax implications. The project is not yet in effect. With the favorable opinion regarding its legality, the project will proceed to analysis by the other committees of the City Council. The proposal still needs to advance through the legislative process and be approved before it can eventually come into effect.

Gustavo Cabral

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