The Ministry of Environment and Sustainable Development (hereinafter "MADS") issued Decree 1553 on December 23, 2024, "By which Chapter 7 of Title 9 of Part 2 of Book 2 of Decree 1076 of 2015, the Single Regulatory Decree of the Environment and Sustainable Development Sector, is replaced, in relation to the retributive fee for the direct and indirect use of water as a receptor of point-source discharges, and other provisions are enacted."
This Decree regulates the transitional paragraph of Article 42 of Law 99 of 1993, as amended by Article 25 of Law 2294 of 2023, which issued the National Development Plan.
Under this regulation, the MADS, together with the Ministry of Housing, City, and Territory, updated the studies, evaluations, and the formula for calculating the retributive fee for point source water discharges, as well as the criteria for gradual distribution of the Regional Factor (RF) based on the commitments made by public sewage service providers, establishing the corresponding regulation with a differential treatment scheme.
The new Decree introduces significant changes to the regulation of the Retributive Fee for Water Discharges, amending the corresponding chapter on the Decree 1076 of 2015. This change aims to promote a more equitable, efficient, and sustainable management of water resources.
Among the changes introduced by this Decree, the implementation of a new method for calculating the Regional Factor (RF), a key variable in the formula for determining the Retributive Fee, stands out. According to the Decree, the Regional Factor now incorporates a multidimensional approach comprising three main variables: environmental, socio-economic, and economic.
The environmental variable focuses on assessing the state of water resources and the impact of pollutants in terms of biodegradability. The socio-economic variable, on the other hand, incorporates criteria to address regional inequality, such as the categorization of municipalities based on their fiscal capacity and the index of unmet basic needs (NBI). Finally, the economic variable, which applies exclusively to public sewage service providers, introduces specific incentives to promote investment in water decontamination projects. This mechanism allows public sewage service providers to reduce their Regional Factor if they meet the objectives outlined in the Sanitation and Wastewater Management Plans (PSMV).
Additionally, new provisions were introduced regarding the accrual and period of the Retributive Fee for Water Discharges, establishing it as an annual tax, with its accrual period running from January 1 to December 31 of each year. Furthermore, it was determined that the taxable base corresponds to the total pollutant load or harmful substances discharged into water resources during a specified period.
Decree 1553 of 2024 issued by MADS represents progress in the regulation of the retributive fee for point source water discharges, introducing a comprehensive and multidimensional approach to its calculation. The inclusion of environmental, socio-economic, and economic variables aims to ensure more equitable and sustainable water resource management. With the new formula for calculating the Regional Factor (RF), the goal is not only to more accurately assess the impacts of discharges but also to promote regional equity and encourage investment in the decontamination of water bodies.
If you have any questions regarding Decree 1553 of 2024 and its impact on your project, work, or activity, please feel free to contact the Environment and Sustainable Business team at Brigard Urrutia.