7575, Executive Decree No. 25721-MINAE of October 17, 1998, so that they read as follows:
" Article 38: The Minister of Environment and Energy shall establish for the National Forest Financing Fund the number of hectares to be financed per activity in the Program of Payment for Environmental Services and the amount to be paid for each of them, based on the resources allocated in the National Budget and other sources, the National Conservation Policies, and the prioritization criteria defined by the National System of Conservation Areas and formalized by the Executive Power. For these purposes, the Minister of Environment and Energy will proceed to issue a Ministerial Resolution setting forth the aspects indicated in this article, which shall be published in the Official Gazette La Gaceta.
The procedures for executing the Payment for Environmental Services shall be issued by the Board of Directors of the National Forest Financing Fund, under the guidelines duly established in this regulation.
The National Forest Financing Fund shall make available on its website the priority layers in digital format (Shape file) so that interested parties can locate the properties that are eligible for the Program of Payment for Environmental Services.
"Article 39. The National Forest Financing Fund (Fonafifo) is empowered to issue the Manuals and/or Procedures necessary for the execution of the Program of Payment for Environmental Services (Pago de Servicios Ambientales, PSA), which must conform to the following provisions:
- a)Of the applications for entry into the Program of Payment for Environmental Services (PSA) in the activities of Reforestation, Regeneration, Forest Management, and Agroforestry Systems (SAF).
i. The National Forest Financing Fund shall establish a period for natural and legal persons to submit applications for the entry of their properties into the Program of Payment for Environmental Services in said activities.
ii. Exceptionally and through a reasoned agreement issued by the Board of Directors of the National Forest Financing Fund, an extraordinary period for receiving applications may be opened when the number of applications submitted is less than the area allocated according to the respective budget.
iii. The determination of the period for receiving applications shall be published on the website of the National Forest Financing Fund and on the institution's different social networks.
- b)Of the Procedure for receiving applications.
i. Interested parties in entering the Program of Payment for Environmental Services (PSA), in the activities of Reforestation, Regeneration, Management, and Agroforestry Systems (SAF) must request an appointment for the submission of their applications.
ii. Appointments shall be requested during the period enabled by Fonafifo, either via telephone, or through the Fonafifo website.
iii. Applications shall be submitted digitally. In the event that interested parties do not have digital tools, they may attend, on the date and time of the assigned appointment, the respective regional office of Fonafifo to process their application.
Only one application shall be received per assigned appointment for each of the Payment for Environmental Services activities. For such purposes, the application form shall be available in digital format on the official website of the National Forest Financing Fund, where interested parties must provide all the information required in order to process the selection process for the Program of Payment for Environmental Services.
The application form requires the information of the potential beneficiary, whether a natural or legal person, such as qualifications, identification number, domicile, folio number or real folios of the property or properties being incorporated, their corresponding cadastral map numbers, place for notifications, email address of the property owner, personal phone number, indicate if the procedure is being carried out with an organization authorized by Fonafifo, and any other as established by the Procedures Manual.
All information required in the digital application must be completed on a mandatory basis. The system will assign the application an identification number, allow saving a copy, and it can be printed.
iv. The application may be completed directly by the potential beneficiary, co-owner, or their proxy, legal representative -if it is a legal entity- the advisory forest engineer, and/or any other person identified as such.
v. The applicant must, at the time of registering their application, indicate the following:
- a)the type of project, b) whether the owner, usufructuary, or lessee has a proxy who will sign the contract, under penalty of not continuing with the procedure if such declaration is not made in the application, except for situations of force majeure that will be evaluated by the Regional Office.
vi. Fonafifo and its Regional Offices shall not process incomplete applications that do not comply with the requirements established in this article or in the Procedures Manual for Payment for Environmental Services.
vii. In the event that the application is processed by means of a special proxy, the latter must provide the certified copy of the power of attorney for the signing of the contract and the encumbrance on the property. If it is a general unrestricted proxy, they must indicate the registration citations of it.
viii. Applications sent via fax, by email, or by certified mail shall not be received, nor those attempted to be submitted without the respective appointment, or outside the date and time assigned to it, or at a Regional or Central Office of Fonafifo other than the one indicated in the appointment.
- c)Of the procedures and deadlines for evaluating applications.
i. Once applications are received by the Regional Offices of Fonafifo, the digitization and location of the maps in the Geographic Information System shall proceed. If the existence of any overlap with any other map is determined, or any other inconvenience, the Head of the Regional Office of Fonafifo, by means of an official letter, shall notify the interested parties so that they may clarify the situation within a period not exceeding ten business days.
ii. If, after the granted period, the corrections and/or clarifications are not submitted, or are submitted again incorrectly, the Regional Head shall proceed with the archiving of the application.
iii. The Regional Offices of Fonafifo shall send the digital applications to the Legal Department of Fonafifo, which shall have up to thirty calendar days for the evaluation of each application. If it is determined that it does not comply with the legal requirements or conditions established for this purpose, it shall issue a document with the missing requirements and send it, along with the background information, to the Regional Office of Fonafifo, which shall grant the applicant a period of up to 20 business days to correct and/or complete the legal requirements. If, after the granted period, the applicant has not fully complied with the provisions, does not submit them, or submits them incomplete, the archiving order or resolution duly signed by the Regional Head must be issued.
iv. If the applications comply with the legal and technical requirements and conditions, the applicant shall be notified that their application was approved and shall be granted a period of up to 15 business days to proceed with the preparation of the technical study and present the forest regency (regencia) form, according to the procedures and requirements established in the Procedures Manual for Payment for Environmental Services, which must be submitted to the corresponding Regional Office.
- d)Of Payment for Environmental Services in Indigenous Territories.
a. The procedure for the application of Payment for Environmental Services by the Comprehensive Development Associations of the Indigenous Reserves shall be that indicated in the previous subsections; however, by virtue of the particular characteristics that these territories present and their form of land tenure (tenencia de la tierra), the following regulations are established for accessing the Program:
b. In the event that the Indigenous Territory does not have the respective cadastral map, the project may be processed using the boundary description (derrotero), for which the National Forest Financing Fund shall use the information detailed in the decree establishing the indigenous territory.
c. The contracts for Payment for Environmental Services signed by said Associations shall not be registered before the National Registry as an encumbrance on the property.
i. The application for entry into the Program of Payment for Environmental Services must be accompanied by a certified copy of the Minutes of the General Assembly of Associates, in which the execution of the Payment for Environmental Services project is authorized.
Said minutes must include the list of attendees and the Treasurer's report approved by the Assembly, which reflects the use given to the resources received by said Associations for the Program of Payment for Environmental Services.
ii. Without exception, in all cases, the procedures for applying to the Program of Payment for Environmental Services must be subscribed and signed by the president of the Comprehensive Development Association of the Indigenous Territory. The contracts signed with these Associations must establish obligations that allow publicizing the financial management to all members of the Association.
- e)Maximum Limits of Area for PSA Projects.
i. Under no circumstances may natural persons and their family group, understood as first-degree relationships (spouse, sons and daughters), legal entities and their related companies operating as an economic interest group, maintain more than 1,500 hectares under contract in the reforestation activity under the Program of Payment for Environmental Services. This provision shall govern only for contracts formalized as of the year 2020.
ii. Natural or legal persons who cannot enter the Program of Payment for Environmental Services may establish alliances and contracts with Fonafifo in order to capture resources through commercialization, both in the national or international market, for the greenhouse gas mitigation actions generated by the areas under management and regeneration or forest plantations.
iii. The conditions of these proceedings shall be established and negotiated in the respective contracts.
"Article 40: If the application is approved, with the respective technical study, Fonafifo shall proceed to prepare the corresponding contract, which must be signed by the interested party and the Ministerial Head of Department or to whom the latter officially delegates their signature. Likewise, the interested party shall at the same act sign the "Informed Consent". If the beneficiary does not appear to sign the contract within a period of up to 15 business days, the application shall be archived.
A lapse period of 18 months is established for the claim of installments derived from contracts for payment for environmental services, in all its modalities, as of the moment in which such obligation was enforceable, unless an acceptable justification is submitted in accordance with the principles of reasonableness and proportionality by Fonafifo. This lapse period shall not affect the contract's validity.
The National Forest Financing Fund is empowered to establish a classification of the beneficiaries, according to their degree of compliance in previous years, in such a way that a continuous improvement scheme is established and excellence is rewarded through promotion mechanisms. For the fulfillment of this aspect, the Board of Directors of Fonafifo must establish, within a period of twelve months, a regulation with the rules for its operation.
For the purposes of the application of Article 49 of the Forest Law No. 7575, the Procedures Manual for Payment for Environmental Services shall establish the conditions to cover the cost of registering the contract before the National Registry. Contracts for the activity of Agroforestry Systems, due to their characteristics as small projects, are not registered as contracts before the National Registry.
In the event of a breach of the Payment for Environmental Services Contract in the activity of forest protection (protección de bosque), Fonafifo may recognize in the respective settlement the years executed in which there has been compliance with the contract.
"Article 47.-The National Forest Financing Fund may sign cooperation agreements with Organizations interested in the execution of tasks of promotion, recruitment, technical advice, administration, and forest regency (regencia forestal) of projects submitted to the Program of Payment for Environmental Services.
For such purposes, the organizations must demonstrate the following:
- a)Be legally constituted and governed by the following regulations: Associations Law No. 218 of August 8, 1939; Law No. 4521 of December 26, 1969, Creation of the Cantonal Agricultural Centers; Reform to Law No. 4521, Establishment of the Cantonal Agricultural Centers, ascribed to the Ministry of Agriculture and Livestock, Law No. 7932 of October 28, 1999; Comprehensive Reform to the Cooperative Associations Law No. 6756 of May 5, 1982, or the Law on Community Development (DINADECO) Law No. 3859 of April 7, 1967, and possess valid legal status. Likewise, organizations protected under the Foundations Law No. 5338 of August 28, 1973, that have forestry or natural resources activities in their programs may also qualify.
- b)Submit a written application to which they must attach the following documentation.
1. Indicate registration citations of the legal status.
2. Provide a sworn statement and/or certifications of executed projects that demonstrate verifiable experience in the field in the execution of forestry or environmental projects. This requirement does not apply to new organizations, but does to their members or permanent staff.
3. Have no pending obligations with forestry projects, financing programs, incentives, or credit granted by MINAE or any of its associated bodies.
4. Provide a certification demonstrating that it has an organizational structure that allows it to have administrative, accounting, and technical capacity for the direction and execution of these projects, to the satisfaction of the National Forest Financing Fund.
5. Have a strategic framework where the projects to be developed annually constitute part of a Regional Forestry Development Program.
6. Charge the amount agreed upon with each beneficiary for advice and assistance services or any other administrative cost.
- c)In the Procedures Manual for Payment for Environmental Services, the procedure, conditions, and other requirements for the implementation and fulfillment of the agreement to be signed for this purpose shall be established.
- d)The contracts that are approved under the cooperation agreement with an organization shall be processed individually, and the respective payments shall be remitted by the National Forest Financing Fund directly to the organization, which in turn, having deducted the amount agreed upon for technical advice, regency (regencia) and project follow-up services, shall deliver the difference to the producer.
Agreements already signed with Organizations under this article shall remain in force until their expiration under the same terms agreed upon.
For reforestation, natural regeneration, forest management, and agroforestry systems projects, the scheme of forest regencies (regencias forestales) shall be maintained. As of 2024, forest protection projects where organizations are involved shall not require a forest regency (regencia forestal); instead, technical follow-up will be the responsibility of forestry professionals.
"Article 63.-In accordance with what is established in the first paragraph of Article 46 and subsection d) of Article 47 of the Forest Law No. 7575, it shall be the responsibility of the National Forest Financing Fund to manage, commercialize, and attract financial resources for the payment of environmental services, both at the national and international levels, by private or public entities of a national or international nature.
For the fulfillment of this function, the National Forest Financing Fund shall have the following powers:
- a)For the sale of projects already executed or in execution: Fonafifo may commercialize the rights derived from the transfer of environmental services already executed or in execution, associated or individually; for this purpose, it must apply the procedure established by the Fund's Board of Directors for this purpose. The National Forest Financing Fund must assess and determine that the price paid is adequate and fair according to market prices and the offer, as well as the implication for the distribution of benefits.
- b)For the sale of future projects: Fonafifo may provide services, commercialize, and sign contracts or agreements for the purchase and sale of environmental services of any type that, at its discretion, allow financing forest conservation and the processes of afforestation. These negotiations, being ordinary business for Fonafifo, may be conducted directly.
Contracts and negotiations in general must consider all project costs, as well as monitoring and certification processes when applicable. For these projects, public treasury resources from the single fuel tax shall not be used. The company, person, or country with which a contract is made must supply the resources for these projects.
- c)General Aspects: The National Forest Financing Fund is authorized to establish, in the contracts it signs, legal arbitration as a means of conflict resolution, according to Law No. 7727 of December 9, 1997, Alternative Conflict Resolution and Promotion of Social Peace RAC.
The National Forest Financing Fund is authorized to use the resources generated by these initiatives to include resources within the Sustainable Biodiversity Fund created by Law No. 8640 of June 5, 2008, Law Approving the Loan Contract No. 7388-CR and its annexes between the Republic of Costa Rica and the International Bank for Reconstruction and Development (IBRD), in order to guarantee the financial resources for the long-term sustainability of the projects.
In payment for environmental services projects, the National Forest Financing Fund may establish differentiated amounts of environmental service payments in favor of the beneficiaries, according to the zone, modality, offer, and demand when so merited for reasons of opportunity and convenience.