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U-M NRE 701 - Updated Proposal - Corporate Watershed Sustainability in Brazil - 2003

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Figure A: International Networkof Basin Organizations (1995)Introduction………………………………………………………………………..…..4FiguresObjectivesResearch MethodsA New Water Law and its Impact on CorporationsSeptember-Nov. 2003 (8 Weeks)November-Dec. 2003 (8 weeks)January 2004 (4 Weeks)February 2004 (4 Weeks)March 2004 (5 Weeks)April 7th 2004March 21- April 14 of 2004 (3 Weeks)Overlap from aboveSchool of Natural Resources and Environment—University of Michigan, MILatin American Area Center - The University of Arizona, Tucson, AZUdall Center for Studies in Public Policy - The University of Arizona, Tucson, AZGrants and ContractsEDUCATIONWatershed Sustainability in Brazil: A New Water Law and its Impact on Corporations byJonah M. Smith: [email protected] M. Nelson: [email protected] Project email: [email protected]@worktools.si.umich.eduA proposal submittedin partial fulfillment of the requirementsfor the Master’s Project Course, NRE 701at the University of Michigan School of Natural Resources & EnvironmentMarch, 2003Faculty Advisor: Dr. Maria LemosTable of ContentsAbstract…………………………………………………………………………….…..3Introduction………………………………………………………………………..…..4- Definition of Sustainability……………………………………………..5Problem Satement……………………………………………………………………..5Background…………………………………………………………………...………..6Description of Proposed Research………………………………………….….……..7- Objectives………………………………………………….…….……...7- Research Methods………….……………………….………….……….8FiguresFigure A……………………………………………………………………………….4 AppendixList of Project References…………………….…………………………………..…....9Budget…………………………………………………………………….………..…..10Workplan…………………………………………………………….……….…..........11- Pre-field…………………………………………………………..…11- In-field…………………………………………………………..…...12- Post-field………………………………………………………..…...13Personnel…………………………………………………………………….………....14- Dr. Maria Lemos…………………………………………………....15-17- Jonah Smith………………………………………………………….18- Brandi Nelson…………………………………………………….….192Abstract:On January 8, 1997, the former President of Brazil, Fernando Enrique Cardoso, signed the National Water Resource Policy into law (Law No. 9.433, 1997). Following the approval of the water law, Brazil is on the verge of implementing wide-ranging water sector reforms, including the introduction of bulk water pricing (Asad and de Azevado, 2003). The purpose of this study is to examine the impact of recent policy reform and itsimplementation on corporate water use in Brazil. What factors, particularly governmental regulation, constrain or improve the ability of corporations to implement sustainable practices in their use of the watersheds? We will focus on the watershed area of Rio Paraiba Do Sul (in Rio de Janeiro and São Paulo, andalso in the state of Minas Gerais) in order to identify detrimental corporate practices and determine how these new institutional arrangements have impacted their water use strategies. To achieve this we will 1) design surveys to be sent out to corporate liaisons, community members, NGOs and government officials; 2) design and conduct interviews with corporate liaisons, community members, NGOs and government officials 3) use content analysis of archived information with respect to corporate operations, watershed commissions, meetings and technical groups, and environmental data concerning the watersheds, in order to compare case studies of corporate sustainability in watershed management; and 4) compile our findings into one comprehensive document accompanied by a presentation. We anticipate formulating sustainability recommendations specific for the case, as well as creating a “best practices” and “indicators” appendage, designed for general review by similar industries facing similar deregulation policies.3Introduction: Purpose of Research: On January 8, 1997, the former President of Brazil, Fernando Enrique Cardoso signed the National Water Resource Policy into law (Law No. 9.433, 1997). The key principles of the National Water Policy include: an integrated approach with the river basin as the planning unit, water as a fragile and finite resource, water as an economic good, and finally, decentralized and participatory management of the resource (Formiga and Scatasta, 8). The purpose of this study is to examine the impact of recent policy reform and its implementation on corporate water use. We will focus on the watershed area of Rio Paraiba Do Sul (in Rio de Janeiro and Sao Paulo, and also in the state of Minas Gerais) in order to distinguish detrimental and useful corporate practices and determine how these new institutional arrangements have impacted their water use strategies. From this analysis, we will examine the feasibility of sustainable water strategies to improve the long-term viability of sustainable corporate operations. We will also examine relevant governmental regulations and how the use of scientific information is integrated into corporate decision-making. From these findings we will make sustainability recommendations to all parties. Possible modifications in water use strategy for one or two of these industries could drastically improve future and current interaction between the private and public sectors with regards to watershed management. Significance of Research: A case study involving recent changes in water use in Brazil in close proximity (just south) to our watershed, is the Rio Grande do Sul watershed. It is there that the large state-owned water company named Corsan services approximately 6.5 million people. During 1999-2002, Corsan


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U-M NRE 701 - Updated Proposal - Corporate Watershed Sustainability in Brazil - 2003

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