Focus on Incentive and Reward System
Engr. Erlinda A. Gonzales
Technical Officer
Environmental Management Bureau

Vicente B. Tuddao, Jr., Ph.D.
Director
Department of Environment and Natural Resources

INCENTIVES AND REWARDSSYSTEM
Philippine Environmental Partnership Program (PEPP)• The PEPP , pursuant to DENR ADMINISTRATIVE Order 2003-14 isa DENR Partnership Program with Industries, in cooperation withother environment-related agencies that aims to encourage andsupport establishments to adopt self-regulation forimproved
environmental performance through the provision of regulatory
assistance and other incentives

Program Categories Or Tracks under thePhilippine Environmental Partnership Program(PEPP)
There are 2 tracks or categories
participating in the PEPP. These are:of Companies

 Track 1 – Large Companies with proven or demonstrated

superior environmental performance that go beyond
compliance and are driven by competitiveness, image, andsupply chain requirements to improve performance. ( i.e.,large companies) Track 2- Companies that are currently unable to comply

with regulations and are driven by survival needs (mostlysmall and medium business enterprise).

INCENTIVE AND AWARDS PROVIDED FORCOMPANIES UNDER TRACK 1
High profile recognition reward- rewarded by the DENR Official Seal of approval
This seal may be used in the packaging or advertising of the establishments symbolizing
its environment-friendly operations. This seal shall be valid for one year.
Regulatory Assistance• Relaxation of reportorial requirements as to the frequency of submission• Simplified requirements for securing Environmental Compliance Certificate for anexpansion project.
• Longer validity of permit
Access to financial assistance from PEPP partner financial institutions such asDevelopment Bank of the Philippines (DBP), Land Bank of the Philippines
subject to compliance with the standard requirements.
Fiscal incentives such as, but not limited to tax credit and or accelerateddeductions.
The are 78 companies qualified for the program’s tract 1 classification and awarded withthe DENR SEAL of APPROVAL.

Qualification Criteria for Establishments toParticipate Under Track I• No cases filed to the Pollution Adjudication Board (PAB)

for three (3) years prior to the date of application• Full compliance with all applicable environmental laws,rules and regulations• Proven record of superior environmental performsnce asshown in an audit report of the EMS to be prepared by athird party auditor subject to review and validated byDENR-EMB.

Benefits of the Government from PEPP
AWARDEES• Provide technical assistance to the other industry partner,
particularly in the preparation and implementation of thesectors Environmental Management Plan
• Assist the industry partner in raising awareness onenvironment concerns.

• Assist in the development of industry-specific effluent
standards, if the need arises.
• Assist in developing a practicable technology that could beused by industry partners to comply with prescribed effluent
levels.

Innovation of Awardees Under Track I on
Environmental Management
Company 1
 Nature of business: Beer manufacturing industry
 Environmental Program/Practices:

Rain water harvesting
Energy Conservation Programs
Solid waste segregation

 Awards /Recognitions/Certifications:
Energy efficiency award (Hall of Fame)
ISO 14001 : 2004
PNS 9001: 2008/ISO 9001: 2009
Merit Citation from DENR

 Corporate Social Resposibility Progrom
Adopt- a- Hectare reforestation Project
Watershed Rehabilitation
Mangrove Rehabilitation Project
Adopt a River
Coastal Clean Up
Adopt-an-Island, and assistance to the conservation of Philippine Eagle

Innovation of Awardees Under Track I on
Environmental ManagementCompany 2 Nature of Business: Semi Conductor Industry

Environmental Programs/ Practices
Water Recycling
Mold Runner& Styrofoam Recycling
Lint Free Paper Reduction Program
Back Grind Waste Treatment Plant
 Awards /Recognitions:Sony Green partner
Philippine Environmental Performance Award by PEZA
Mother Nature Award by PCAPIHall of Fame-Energy Management by DOE
LEED Award- Silver
Master Zero Basura Olympics Award Corporate Social Responsibility Programs:
Tree Planting Angat Bata Program
Community Fumigation Program
Community Clean-up
Medial Mission, Feeding ProgramAPPROACHES TO TRACK 2
Participation in Track 2 shall be either by establishment or anindustry association.
Participating establishments shall enter into anenvironmental concern agreement with the DENR toachieve regulatory compliance pursuant to the terms andconditions of the ECONA.
ECONA – Environmental Consent Agreement entered
between DENR and an Establishment under Track 2 after
the Establishment or industry association expresses its
intention to achieve improved environmental performancewithin the context of implementing an EMS.

QUALIFICATIONThe qualification criteria for establishment to participateunder Track 2.
 Explicit company policy to achieve superior
environmental performance self reporting or selfdiscovered non-compliance with environmental
regulations.
 Submission of all Track 2 documentary
requirements.

Regulatory Assistance Provided for
Establishments UnderTrack 2Phased timetable for attaining compliance to regulations
ranging from 18 to 30 months within the context of
implementing an EMS.
Flexible payment schemes.
Simplified requirements for securing an Environmental
Compliance Certificate for an expansion project.
For companies operating without an ECC and are coveredby the EIS system the, EMB within the context of an EMS
shall accept the ECC of the company, and a waiver or
reduction of corresponding penalties.

Financial and Other AssistanceProvided access to appropriate financial assistancefrom PEPP partner, banking institutions subject tocompliance with their respective standard
requirements for borrowing.

Fiscal incentives such as tax credit and/or accelerated
depreciation deductions shall also be provided.

ENVIRONMENTAL REPORTING AND
AUDIT
Environmental Reporting Submission of quarterly report and annual; The report shall present the measures that have beentaken in order to fulfill all relevant environmental
requirements as well as the results;
 The annual environmental report which shall besubmitted to the Environmental Agency concerned
within the prescribed period, shall be audited andcertified by an independent and accredited
environmental auditor.

Self Regulation Management andCoordinating Unit (SRMCU)
Functions Review, evaluation and recommendation for Director’s
approval of all submitted EMPs;
 Provision of assistance in setting up of EMS andpreparation of EMPs and ECONAS;
 Coordination with PEPP partner institutions concernedin the implementation of EMPs;
 Maintenance of a program database; Review and evaluation of the efficiency and effectivenessof self-regulation policy
 Preparation of the accomplishment report.

TRAINING OF ESTABLISHMENT
Training of DENR-EMB, EOs/PCO/CEO on self
regulation, preparation of environmental management
programs and preparation of reports.

INFORMATION DISSEMINATIONEAs and partner institution shall conduct a massive
information, education and communication campaign toensure understanding and successful implementation.

PHASED IMPLEMENTATION
While this program shall be a nationwide application,
the DENR-EMB may phase each implementation not toexceed 3 years in geographic or sectoral pilot areas.

IMPLEMENTATION REVIEWThe PEPP shall undergo periodic review and evaluation
to enhance each implementation. DENR EMB/EAs may
encourage the PEPP partners and the industries/industry
associations in the review process.

CONFIDENTIALITYThe DENR-EMB/EAs shall ensure that all records onbusinessandtradesecretsof
participating
establishments shall be treated as condifential.

PHILIPPINES EFFORT ON WASTEWATERMANAGEMENT

INDUSTRIAL ECOWATCH Industrial Eco watch was implemented as part of EMB’s

compliance monitoring system created under DENR
Department Administrative Order (DAO) 98-15 as amended
by DAO No. 2003-26.

OBJECTIVES Promoteself-monitoring
andcompliancewithenvironmental standards;
 Encourage voluntary self-regulation among establishments
for improved environmental performance Encourage pollution reduction beyond compliance throughpublic recognition and praise; and Build/enhance the capability of establishments and or theirassociations in developing internal environmental
management systems and promoting the use ofinternational environmental standards such as the ISO
14000 series.

Eco-watch System A public disclosure program where the industrial
and commercial establishments are rated withcorresponding color in accordance with theirenvironmental performance Six color codes are used to rate the performance ofvarious industries:(Black, Red, Blue, Green, Silver and Gold)Criteria of BLACK• Failure to comply with effluent/emission standards;• Discharges toxic
allowable limits;andhazardouswaste

beyond• Under a Cease and Desist Order (CDO);• Willful manipulation of effluent discharge or air
emissions/misrepresentation or falsification ofreport/s;• Absence or lack of required pollution control device/s;• Inaction to an existing and legitimate complaint; and• Obstruction of inspection activities.

Criteria of RED
Failure to comply with effluent/emission standards despite
presence of fully-operational pollution control devices.

Criteria of BLUE
• Pollution level of effluent/emission is within standards
within the rating period of one year;• Well-maintained pollution control facility/system;• Self-monitoring report (SMR) complete and accurate;• Shall submit within fifteen (15) calendar days after the endof each quarter• Full compliance with ALL DENR regulatory requirements.

Criteria of GREEN• Meets all DENR requirements;• BLUE rating in the previous rating period;• Effluents/emissions better than standards by20%;• Well-functioning monitoring equipment e.g.
flowmeter/CEMS; and• Easily accessible discharge/emission point/s.

Criteria for SILVER• The firm meets all the DENR requirements;• GREEN rating in the previous rating; and• Clean technology, energy & water conservation
program in use.

Criteria of GOLD• SILVER rating for the past 2 years in all media;• EMS or waste reduction program in place; and• Community environmental outreach program in place.

Summary of Ratings Systems for Eco Watch Program

Broad Category

Color
CodeExcellent

GOLDOutstanding

SILVER

Very GoodGREEN

GoodBLUE

Effort not sufficientfor compliance

Bad

RED

No effort to comply

Very Bad

BLACK

Performance
Indicator
Efforts beyond legal
requirements
Effort levelsufficient to comply

ADMINISTRATIVE INCENTIVES/SANCTIONSColor CodeBLACKREDBLUE
GREEN

Incentives/Sanctions
 Filing of appropriate case/s in the Pollution Adjudication Board(PAB) for violation/s of applicable guidelines on environmentalstandards;
 For firms with accredited Pollution Control Officer (PCO), theinvestigation of responsibilities or culpabilities of the PCO
concerned and the application of administrative sanctions uponconclusion of the investigation; and For firms without accredited PCO, the filing of case/s in the PABfor violations of DAO 26.
 Shall be allowed to submit its quarterly SMRs on a semi-annualbasis;
 Shall be allowed to submit its quarterly SMRs on annual basis; and;
 Regular permit renewal shall only be based on said SMRsubmission for two (2) consecutive years.

ADMINISTRATIVEINCENTIVES/SANCTIONSColorCodeIncentives/Sanctions
 Shall be allowed to submit its quarterly SMRs on an annual basis;

 Regular permit renewal shall only be based on said SMR
ISILVER submission for three (3) consecutive years; and When applicable, the DENR Official Seal of Approval (as providedfor in Section 5.1.1 of Dao 2003-24) shall indicate the rating.

 Shall be allowed to submit its quarterly SMRs on annual basis;
 Regular permit renewal shall only be based on said SMR
submission for five (5) consecutive years; andGOLD  When applicable, the qualified firm may also avail of Regulatory
assistance and Other assistance as provided for in Section 5.1.2 to5.1.5 of DAO 2003-14 (PEPP).

THANK YOU