The purpose of the decree is to regulate the procedure that will determine the energy efficiency goals for new motor vehicles.
On August 23, Decree No. 14 [See here] was published in the Official Gazette, which approves the regulations for setting vehicle energy efficiency standards in Chile.
It is important to mention that the regulation is part of the rules for the application of Law No. 21,305 on Energy Efficiency.
Along with the above, the regulation regulates several matters contemplated in the First National Energy Efficiency Plan, among others, energy consumers, energy qualification of housing and efficiency of motor vehicles.
It should be clarified that this law also regulated general aspects of electric and hybrid vehicles. Thus, the purpose of this decree is to regulate the procedure that will establish the energy efficiency goals for new motorized vehicles, such as light, medium and heavy vehicles, approved or certified, as appropriate, marketed in the country.
The most relevant aspects of the decree are detailed below.
Procedure and Inspection
The decree establishes that the Ministry of Energy shall prepare a preliminary technical report for the type of motor vehicle as appropriate.
Subsequently, a public consultation process will be opened for at least 60 days, inviting citizens, companies and experts to participate through the Ministry of Energy’s website.
Once the consultation period is over, the Ministry will review the contributions and prepare the final technical report, which will be submitted to the Council of Ministers for Sustainability and Climate Change.
Following the review of the comments, the Ministry will publish a summary document with the analysis, together with the final technical report, on its website.
Importers and brand representatives will have to ensure that the vehicles comply with the established standards, presenting the homologation certificates that endorse the energy performance of each model.
In addition, to ensure compliance, the Ministry of Transport and Telecommunications will annually verify the performance of vehicles, while the Superintendency of Electricity and Fuels (SEC) will impose sanctions in case of non-compliance, as indicated below.
Penalty Procedure and Fines
The regulation foresees a system of fines for importers or representatives that do not comply with the energy efficiency standards.
These can reach up to 0.2 Unidades de Fomento (UF) for each tenth of a kilometer per liter of gasoline equivalent that is below the established standard.
The value of the penalty will be calculated by multiplying this amount by the total number of vehicles certified in the audited period, which ensures that penalties are proportional to non-compliance.
It is important to note that, instead of being applied immediately, the fine will not be enforceable until the year following the non-compliance.
If in that period the offender manages to exceed the defined standard, the amount equivalent to each tenth of a kilometer per liter of gasoline that exceeds the standard may be deducted, which will reduce the penalty or may even eliminate it.
This measure seeks to encourage compliance and continuous improvement in the energy efficiency of vehicles.
The decree came into force this September 23, granting an adaptation period for the main parties involved.
Although its enactment has been delayed (the original deadline expired in August 2023), the regulation has been awaited with great expectation by importers of motor vehicles, both conventional and electric and hybrid, as it will represent a new factor to be considered in the importation and pricing of new vehicles.
Finally, it should be noted that the automotive industry will be the only one subject to fines for not complying with specific energy efficiency targets.
To discuss the implications of this new decree, please contact our Energy and Infrastructure team:
Federico Rodríguez | Director | frodriguez@az.cl
Simonne Rojas | Associate | srojas@az.cl
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