BRASILIA — Brazil's lower house of Congress has approved a bill fiercely contested by environmental groups to loosen licensing requirements for infrastructure, mining, agriculture and other projects.

The move drew criticism from conservation groups at a time when Brazil's environmental record is under intense scrutiny as deforestation in the Amazon rainforest soars.

U.S. President Joe Biden's administration is in talks with Brazil to possibly fund conservation efforts, but has demanded that the country first show results in reining in destruction.

The licensing bill, which was approved late on Wednesday, will now pass to the Brazilian Senate for consideration.

For many types of projects it would allow for permits to be automatically issued if the applicant meets certain filing requirements. That would include projects like repaving existing highways in the Amazon that were built by the military dictatorship and have fallen into disrepair.

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Brazilian President Bolsonaro has pledged to repave one such road that a scientific study predicts will increase deforestation by five times through 2030, leading to the clearance of an area larger than Florida.

Proponents of the bill include Brazil's powerful agricultural caucus in Congress. They argue that byzantine environmental permitting rules stymie investment and hinder economic growth of the natural resource-rich country.

While its backers say that the bill will do away with licensing on certain types of projects which are deemed low risk, environmentalists say it will open the floodgates to environmental degradation.

Dozens of non-governmental organizations on Wednesday signed a letter to the Organization for Economic Co-operation and Development (OECD), which Brazil hopes to join, expressing concerns about its environmental policies, including the bill.

"If approved, this will result in degradation and pollution of all kinds, including deforestation increase in the Amazon and proliferation of new environmental disasters," the letter said.

Nine former environment ministers issued an open letter on Monday opposing the bill, acknowledging that an overhaul was needed, but citing a long list of problems with the proposal which they said would deal a "death stroke" to licensing as a tool to ensure sustainable development.

(Reporting by Jake Spring; Editing by Alexander Smith)