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Veirano Advogados Partner Clarifies Recent Updates on Dam Safety Legislation in Brazil
Dam entrepreneurs will have new obligations starting this year. Last December, the federal government enacted Law No. 14.755/2023, which establishes the National Policy for the Rights of Populations Affected by Dams (PNAB). By the end of the same month, the State of Minas Gerais regulated the environmental guarantee provided for in the State Policy on Dam Safety (Law No. 23.291/2019).
Both regulations are now in effect and have implications for dam entrepreneurs covered by Law No. 12.334/2010, which establishes the National Policy on Dam Safety.
According to Beatriz Frontin, a partner in the environmental practice at Veirano Advogados, the PNAB follows measures published after the environmental disasters in Mariana and Brumadinho, in Minas Gerais, and strengthens public policies for those affected by dams in the country. “Some states like Minas Gerais, Maranhão, and Piauí already had initiatives regarding policies for dam-affected populations. Now we have a plan that provides a national scope on the issue,” she says.
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The text details the rights assured to communities affected by this type of activity—such as compensation in cases of emergencies resulting from leaks or dam breaches, provides for the creation of the Program for the Rights of Populations Affected by Dams (PDPAB), and establishes rules for social responsibility that must be observed by entrepreneurs.
From an environmental perspective, the specialist highlights that the law considers issues related to sanitation. “We saw in the recent disasters that sanitation structures, both for water capture and treatment, were affected by the waste, causing serious sanitary problems in the municipalities. It is important that the law addresses this essential issue for the population affected by dams,” she comments.
According to the lawyer, in the social aspect, entrepreneurs are now required to present a Program for the Rights of Populations Affected by Dams (PDPAB), necessitating the creation of an effective communication plan. “The plan must also include specific programs aimed at traditional and indigenous communities, as well as actions in health, environmental sanitation, housing, and education in the municipalities that will receive the workers from the construction site or those affected by any leak or dam breach,” explains Beatriz.
The decree No. 48.747/2023 published by the State of Minas Gerais regulates the environmental guarantee, provided in the State Policy on Dam Safety (Law No. 23.291/2019), which aims to ensure social and environmental recovery in cases of disasters and for the decommissioning of the dam, being a requirement for the environmental licensing of dams in the state.
According to the specialist, the regulation of the instrument had been awaited by dam entrepreneurs in Minas Gerais since 2019. The decree defines parameters for calculating the environmental guarantee, considering the area of the dam reservoir, classification and purpose of the dam, and estimated costs of decharacterization projects.
“In general, both the PNAB and the state decree of Minas Gerais deal with an important agenda that Brazil has been observing very closely, especially in recent years, and represent an improvement of public policies focused on dam safety, being directly related to the Dam Safety Policy,” she concludes.
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