Prior to the report’s presentation, Mr. Alcolumbre stated that Ms. Cristina would provide “several clarifications, including debunking lies that have been raised regarding this text and this bill.” The proposal has faced criticism from environmentalists.

The legislation introduces a new category of authorization called the Special Environmental License (LAE) for projects deemed strategic, even if they have significant potential for environmental degradation, such as oil exploration in the Amazon estuary. The classification of strategic projects will be determined by presidential decree, based on biennial recommendations from the Government Council.

Mr. Alcolumbre’s amendment simplifies the licensing process, making it single-phased with prioritized processing. The licensing authority—either the Brazilian Institute of Environment and Renewable Natural Resources (Ibama) for federal cases or state and municipal environmental agencies—will have up to 12 months to issue an LAE decision. The license will be valid for five to ten years, similar to other permits.

Before the LAE is issued, the project must undergo six stages: drafting the Terms of Reference, submitting environmental studies, obtaining input from relevant agencies, technical analysis (with potential requests for adjustments), technical opinion, and finally, the granting or denial of the license.

In another change directly impacting oil exploration in the Equatorial Margin, Tereza Cristina, who served as Agriculture Minister under President Jair Bolsonaro (Liberal Party, PL), accepted a proposal allowing companies to request a review by an internal board if a license is denied—as was the case with Petrobras and Ibama in the Amazon estuary. This board would comprise directors and include input from the company, the responsible ministry, and a representative appointed by the president.

Oil exploration in the Equatorial Margin—an offshore oil province which includes the states of Amapá, Pará, Maranhão, Piauí, Ceará, and Rio Grande do Norte—is a priority for Mr. Alcolumbre but faces resistance from Ms. Silva and Ibama. The presidential office viewed Mr. Alcolumbre’s support for advancing the environmental licensing bill as retaliatory.

During the vote, Ms. Cristina, vice president of the Agribusiness Parliamentary Front (FPA), defended the proposal’s progress. “What we are doing now with this new law is giving legal effect to the 2011 legislation. Basically, we aim to license with more clarity, efficiency, and fairness. The current tangled web of overlapping rules among various agencies and levels of government hinders important initiatives, generates unnecessary litigation, and discourages responsible investments,” she argued.

The proposal was approved by 54 votes to 13 and will return to the Chamber of Deputies.

Ms. Cristina also accepted an amendment from Senate Brazilian Democratic Movement (MDB) leader Eduardo Braga (Amazonas) stipulating that maintenance services and works on existing, previously licensed infrastructure—such as paved roads and transmission lines—will not require new authorization. Sources indicate this provision affects BR-319, another point of contention between Congress and Ms. Silva.

The bill also expands the use of the License by Adhesion and Commitment (LAC), a self-declaratory license currently limited to low-impact activities, to include small and medium-sized projects classified as having light or moderate impact.

Senator Fabiano Contarato (Workers’ Party, PT, of Espírito Santo) expressed opposition to the expanded use of the LAC. Despite his remarks, the senator, who chairs the Environment Commission (CMA), did not impede the bill’s progress in the committee.

According to the senator, the new rule contradicts the understanding of the Federal Supreme Court (STF). He also linked the self-licensing of midsize polluters to the risk of disasters like those in Mariana and Brumadinho.

The bill permits the use of the LAC for basic sanitation projects. In a victory for the Agribusiness Parliamentary Front, the Chamber’s stance exempting the sector from environmental licensing—provided the requirements of the Forest Code are met—was maintained. Conversely, the bill reinstates large-scale, high-risk mining under the new regulations. Previously, such activities were subject only to resolutions from the National Environment Council (Conama) until specific legislation on the matter was approved.

The bill also includes strategic projects for national energy security among activities entitled to prioritized processing and simplified procedures in environmental licensing. To qualify, projects must be formally incorporated into sectoral energy plans and policies. This priority was already granted to basic sanitation works under the legal framework for sanitation.

As reported by Valor, the bill repeals provisions of the Atlantic Forest Law that require the removal of primary and secondary vegetation in advanced regeneration stages to be authorized only in cases of public utility or social interest, with approval from state environmental agencies and, in some situations, Ibama.