Brazil's Bill Proposes Federal Water Use Compensation and Revenue Share

The Brazilian Chamber of Deputies is reviewing Project Bill 675/26, which would introduce a new charge on the use of federal water resources. The fee, set at 7% of the volume of water captured or consumed, would apply to entities that require authorization for water extraction.

Proceeds would be allocated among municipalities (65%), states (25%) and the Union (10%). The proposal, sponsored by Deputy Laura Carneiro (PSD‑RJ), argues that current water‑use fees do not flow back to sub‑national governments, and likens the mechanism to compensation schemes for oil, minerals and hydroelectric potential.

The bill also specifies that funds cannot be used for debt service or permanent personnel costs, with limited exceptions for education and pension fund capitalization. It must pass the Chamber and Senate after review by several committees before becoming law.