On Wednesday (the 11th), the Chamber of Deputies approved, by a vote of 276 to 124, the core text of the bill establishing the new legal framework for basic sanitation.
The proposal establishes new rules for the sector and paves the way for private-sector operation of the service. According to the Ministry of Regional Development, half of the Brazilian population lacks access to a sewer system.
With the approval of the main text, the representatives moved on to reviewing the amendments—that is, proposals aimed at modifying the original wording. This stage will not be completed until next week.
During the session, the representatives decided to approve a bill submitted by the Executive Branch in August of this year, rather than the version submitted by the Senate, which was introduced by Tasso Jereissati (PSDB-CE).
The bill approved by the House of Representatives is based on the executive branch’s draft and includes amendments proposed by the rapporteur, Geninho Zuliani (DEM-SP).
As a result, the final say on the matter will rest with the House. There were more than five hours of debate on the issue on the floor before the vote on the main bill.
The opposition criticizes the proposal for allowing the service to be operated by the private sector. In response, lawmakers are resorting to filibustering—that is, they are using procedures provided for in the internal rules to try to delay the vote.
Those responsible for sanitation services
The bill stipulates that municipalities and the Federal District are responsible for basic sanitation services at the local level.
The proposal allows for the creation of public consortia and cooperation agreements between neighboring municipalities so that service delivery covers a specific region. State and local governments will be responsible, among other tasks, for:
- develop basic sanitation plans, as well as establish performance targets and indicators and mechanisms for measuring results, which must be strictly adhered to in the provision of services;
- provide the services directly or contract out their provision, and designate, in both cases, the entity responsible for regulating and overseeing the provision of public basic sanitation services;
- establish the rights and responsibilities of users.
Private-sector participation
Those responsible for providing sanitation services may authorize the operation of such services through concessions to the private sector, via a competitive bidding process.
The text stipulates that contracts must include certain essential clauses, including:
- service expansion goals;
- targets for reducing losses in the distribution of treated water;
- quality objectives for service delivery;
- efficiency targets and targets for the rational use of water, energy, and other natural resources;
- targets for the reuse of wastewater and the utilization of rainwater.
Universal access to the service
The project sets the following goals to be achieved by December 31, 2033:
- drinking water is expected to reach 99% of the population;
- Sewage collection and treatment should reach 90% of the population.
Program agreements
The bill prohibits the use of so-called program contracts, which are awarded without competitive bidding and are entered into directly between service providers and concessionaires. This type of contract is used in the provision of services by state sanitation companies.
The bill mandates the opening of a bidding process, with the participation of public and private companies, and eliminates the right of first refusal held by state-owned companies. Program contracts in effect at the time the law takes effect will remain valid until their scheduled expiration date. Existing program or concession contracts may be recognized as program contracts and renewed by agreement between the parties until March 31, 2022.
Changes to the responsibilities of the National Water Agency
The text provides that the National Water Agency shall establish reference standards on, among other topics:
- quality and efficiency standards in the provision, maintenance, and operation of basic sanitation systems;
- tariff regulation for basic sanitation services;
- standardization of contracts for the provision of basic sanitation services;
- gradual reduction and control of water loss;
The bill amends the 2010 National Solid Waste Policy, extending the deadline for phasing out open dumps. The current law stipulated that open dumps must cease operations by 2014. Now, the law stipulates that the phase-out of open dumps must be completed by December 31, 2020.
This deadline does not apply to municipalities that have developed an intermunicipal solid waste plan or a municipal plan for integrated solid waste management. In these cases, the deadlines will range from August 2021 to August 2024, depending on the location and size of the municipality.
During the session, the representatives approved the following amendments:
Contract validity: The representatives amended the section of the bill that addressed the conditions for the validity of contracts for the provision of basic public sanitation services. They removed the provision that required, as a condition for the validity of such contracts, the resolution of problems caused by water pollution resulting from untreated sewage.
Environmental licensing: The legislators approved an amendment stipulating that environmental licensing for projects and activities in the area of basic sanitation is the responsibility of the municipality. If there is no agency responsible for environmental licensing in the city, the responsibility will fall to the state agency. The text also stipulates that licensing for projects in this area will take priority over licensing applications for other types of projects.
