15 Apr Obligation to submit the Annual Operating Report (COA)
Compliance with environmental obligations is essential to ensure the lawful and continuous operation of business activities. In this context, the Annual Operating Report (“COA” for its acronym in Spanish) is a mandatory filing for certain facilities, through which information is submitted to the environmental authority regarding the emissions and pollutant transfers generated during their processes, in accordance with the applicable environmental regulatory framework in Mexico.
The regular period for the submission of the COA under federal jurisdiction runs from March 1 to June 30 of each year, and must include information on the emissions and pollutant transfers generated during the immediately preceding calendar year.
A company is required to submit the COA if it falls under any of the following scenarios:
- It is classified as a fixed source under federal jurisdiction in atmospheric matters, belonging to sectors such as chemical, petrochemical, hydrocarbons, automotive, cement, metallurgical, among others.
- It holds an Environmental Operating License (“LAU” for its acronym in Spanish) or an Operating License issued by the Ministry of Environment and Natural Resources (“SEMARNAT” for its acronym in Spanish).
- It discharges wastewater into bodies of water under federal jurisdiction.
- It generates more than 10 metric tons of hazardous waste per year.
- It engages in the integral management of hazardous waste, including collection, transportation, recycling, incineration, treatment, or final disposal.
- It emits, directly or indirectly, 25,000 metric tons or more per year of carbon dioxide equivalent (CO₂) of Greenhouse Gases and Compounds (“CyGEI” for its acronym in Spanish), within any of the aforementioned industrial sectors.
To determine whether the COA must be submitted at the federal or state level, it is essential to identify the industrial classification of the company and verify whether it falls under any category subject to federal jurisdiction. Likewise, it is necessary to analyze the type of emissions, waste, and discharges generated, in order to determine whether they are subject to federal regulation—such as hazardous waste or discharges into national water bodies—or state regulation, such as special handling waste or municipal discharges.
It is also advisable to review previously issued environmental permits, such as the LAU—whether federal or state—as well as any registrations related to the generation or management of waste.
In the case of the state-level COA, the applicable regulatory framework and submission deadlines vary depending on the legislation of each federal entity. For instance, in states such as Jalisco and Nuevo León, the deadline for submission is during the month of April, pursuant to the guidelines issued by the respective local environmental authorities.
If your company falls under any of the above-mentioned scenarios, it is essential to timely initiate the integration and submission process of the corresponding COA, within the established deadline, in order to avoid legal contingencies and administrative penalties.
Our team is available to advise you on the fulfillment of your environmental obligations. Should you require further information or assistance, please do not hesitate to contact the professionals at Cuesta Campos.
Contact
Berenice Soto García
bsoto@cuestacampos.com
Héctor Ceballos González
hceballos@cuestacampos.com
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.