Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

18™ CONGRESS
First Regular Session

HOUSE BILL NO. ay

Introduced by Representatives CARLITO S$. MARQUEZ and
CARLOS 0. COJUANGCO

EXPLANATORY NOTE

This bill seeks to amend and/or repeal pertinent provisions
of Republic Act 8749 or-the Philippine Clean Air Act of 1999 and
Republic Act 9003 or the Ecological Solid Waste Management Act
of 2000 with regard to the ban on incineration of waste. This is a
re-filed bill from the 17% Congress and was approved on Third
Reading on January 29, 2018, however, it was not tackled in the
Senate Committee due to lack of material time.

The Philippines is a beautiful country that unfortunately has
a number of focal environmental concerns which need to be dealt
with. One of these critical issues is with regard to the
mismanagement of garbage and wastes which cause other types of
environmental disasters such as flooding, erosion, landslides and
other dangers on landfills and dumpsites that include health
concerns among the people living nearby. Since the inception of
these two (2) relevant laws, the local government units, especially
in the metropolis are unrelenting in executing these two
regulations. However, the LGUs can just do so much. According to

1


the National Economic Development Authority, only 26% of LGUs
nationwide implement the Solid Waste Management Act.

Look at Metro Manila - it stinks to high heavens. Metro
Manila residents had become such prolific litterbugs that the
supposedly local problem of household garbage had become a
national concern. They generate so much garbage that they are
responsible for one-fourth of.the country’s daily output of solid
waste, according to the Department of Environment and Natural
Resources (DENR). The DENR said Metro Manila produced about
8,400 to 8,600 tons of trash per day. That volume already accounts
for about 25% of the country’s daily solid waste generation of some
35,000 tons an average of 0.7 kilogram of waste a day, about
“130% higher” than the global average of 0.3 kilogram per person
per day. However,-only 6,000 tons end up in legal waste facilities
while the rest are illegally dumped in private lands, creeks, rivers
and at times, are even burned openly. The more waste in the
Philippines causes the increase in global warming, high
temperature and less oxygen. because of the air pollution. From
flooding to dengue, from polluted rivers and creeks to mountains
of trash, from the unnecessary. death of fishes that accidentally
swallowed plastic bags in the seas to global warming, garbage is
the common denominator. The paradise island of Boracay is also
threatened by this dilemma. Businessmen fear that a Smokey
Mountain similar to the.mountain of trash that used to obscure
Tondo, Manila could rise up if the temporary garbage dump in Sitio
Bulabog, Barangay Balabag is closed down. This poses a health
and environment hazard in Malay, Aklan.


Given the perennial garbage problems in the Philippines
which harm the environment, waste management is indeed a
necessary step to resolve and minimize all garbage-related
problems in the country. Apparently, most landfills and garbage
dumpsites filled up very fast. As such, there is a great danger that
the country may run out of proper dumpsites and waste facilities
that will ultimately lead to further environmental and human
hazards.

Some of the local government bodies in the Philippines are
currently pursuing the best methods to solve the ever-increasing
garbage problem in the’ country. Some’ provinces in the country
pursue the privatization of their solid waste management efforts in
order to diminish 'the negative effects of garbage mismanagement.
On the other hand, the Philippine Congress is also actively
prioritizing the creation of new laws and policies intended to
strengthen proper waste management practices in the country. In
fact, just recently, some lawmakers have already filed a bull which
requires LGUs to make use of garbage trucks with “onboard
compactor” for the proper transportation and collection of solid
waste. Basically, the main purpose of this onboard compactor is to
compact solid waste while these are in transit and ultimately,
reduce the total volumie of solid waste and minimize the amount of
waste generated in the major cities and localities in the country.

The Philippine government recognizes the fact that there are
many possible solutions to address the ever-growing problem on


waste generation. Unfortunately, there are also many given
constraints to totally eradicate this huge garbage problem in the
country.

Section 20 of the Clean Air Act of 1999 specifically prohibits
incineration and the Solid Waste Management Act of 2000 makes
it a policy for the State to “adopt a systematic, comprehensive and
ecological solid waste management program which shall ensure the
proper segregation, collection, transport, storage, treatment and
disposal of solid waste through the formulation and adoption of the
best environmental practice in ecological waste management
excluding incineration.”

We rebut that incineration of waste is harmful to the
environment. Even the Supreme Court has pronounced in its
doctrinal ruling’ in MMDA’ vs. JANCOM ENVIRONMENTAL
CORPORATION (G:R. No. 147465, January 30, 2002) which states
that the Clean Air Act of 1999 does not absolutely prohibit
incinerators as a mode of waste disposal “rather only those burning
processes which emit poisonous toxic fumes are banned.” By the
same token, some city councils’ who are already alarmed by the
garbage menace have already passed resolutions of their own
asking the repeal of the two laws, citing that a sustainable and
long-term’ solution is necessary for the setting up of an in-city,
state-of-the-art WTE (waste-to-energy) facility, similar to those
extensively used in the US, Japan, South Korea, Singapore and
developed countries in Europe.


The anti-incinerator coalition should take note that the myth
about this technology is already proven wrong. There is no
scientific fact that it emits over 200 toxic or potentially toxic
substances, including dioxin and furans, which are chemicals that
cause cancer, birth defects, and neurological disorders. It is not
also correct to say that incinerators have high operating costs and

pose environmental risks.

This proposed measure will pave the way for the necessary
and modern solution to the perennial garbage problem that has
been the major headache of the government and in the process
would serve to attract more investors in the country. The waste-to-
energy projects will have safety features in consonance with the
terms of reference based: on its alleged advantages of greatly
reduced waste volume, prolongation of the service life of the
disposal site, and generation of electricity. No other than Davao
City through the strong pronouncements of Mayor Sarah Duterte-
Carpio has ferret out her desire to put up a WTE facility to
disentangle Davao’s garbage drawback. Quezon City’s Sanggunian
had already come out with their ordinance to build a WTE facility.
Others follow suit because these LGUs need to act now before it is
too late.

Immediate passage of this bill is earnestly sought.

hy re

‘ENGR, CARLITO “Lito” MARQUEZ

eG

HON. CARLOS O. fe}


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

18™ CONGRESS
First Regular Session

HOUSE BILL No. __*!®

Introduced by Representatives CARLITO S. MARQUEZ and
CARLOS O. COJUANGCO

AN ACT

REGULATING THE USE OF TREATMENT TECHNOLOGY FOR
MUNICIPAL AND HAZARDOUS WASTES, iG FOR THE
PURPOSE SECTION 20 OF REPUBLIC ACT NO. 8749,
ENTITLED “THE PHILIPPINE CLEAN AIR ACT OF 1999”

Be it enacted by the Senate and the House of Representatives
of the Philippines in Congress assembled:

SECTION 1. Title.— This act shall be known and referred to
as the “Regulation of Waste Treatment Technology Act of

2019”.

Sec. 2. Regulation of Waste Treatment Technology. - Thermal
and other treatment technologies for the disposal of municipal and
hazardous wastes, or for the processing of any material for fuel,
whether for commercial use or not, shall be designed and operated

to meet the standards established in this Act and its implementing


12

13

4

15

16

7

18

19

20

2a

rules and regulation: Provided, That these technologies shall be
fitted with equipment that will continuously monitor, records and
make publicly available the reported data on their emissions or air
pollutant concentrations: Provided, however, That units that
recover energy shall be prioritized: Provided, further, That entities
utilizing units shall incorporate in their facilities or operations
proper materials recovery program: Provided, finally, That thermal
treatment units shall treat wastes at a temperature of not less than

eight hundred fifty degrees centigrade (850°c).

Sec. 3. Role of the Department of Environment and Natural
Resources (DENR). - The DENR shall be primarily responsible for
the implementation and enforcement of this Act. It shall likewise
promote the use of state-of-the-art, environmentally-sound and
safe technologies for the handling, treatment, thermal or non-

thermal destruction, utilization, and disposal of residual wastes.

Sec. 4. Role of Local Government Units (LGUs) in Setting Up
Treatment Facilities. — The LGUs are hereby mandated to promote,
encourage and implement in their, respective jurisdiction a
comprehensive solid waste management plan that includes waste
segregation, recycling and composting.

7


10

u

12

13

14

16

7

19

20

21

The establishment of treatment facilities shall be facilitated
by LGUs within a reson province, or strategically clustered LGUs
in consonance with their respective ten-year solid waste
management plans made consistent with the national solid waste
management framework established pursuant to R.A. No. 9003,
otherwise known as the Ecological Solid Waste Management Act of
2000. The solid waste management plans of all the LGUs shall be
subjected to the approval of the National Solid Waste Management

Commission (NSWMC),

Sec. 5. Role of National. Solid Waste Management
Commission. — Pursuant to. the provisions of R.A. No. 9003, the
NSWMC shall ensure the establishment of a comprehensive solid
waste management plant in all LGUs, which plan shall incorporate
waste segregation, recycling and composting, and disposal. The
NSWMC shall approve or deny the plan, or supplemental disposal

plan of all LGUs,, which may carry out treatment projects, within

ten (10) working days from its submission. The Department of
Science and Technology (DOST) shall likewise process the
application of said projects for the necessary technology

verification within the same period. However, for new technology,


10

1

12

13

4

15

16

7

19

20

2.

the DOST shall have twenty (20) working days from the receipt of
the application of said projects to process the verification. In all
cases, the approving body shall put in writing the reasons for

either approving or denying the plan.

Sec. 6. Responsibility of Owner and Operator. . -
Responsibility for compliance with the standards promulgated for
the establishment and operation of waste treatment facilities shall
rest with the owner. and/or operator thereof. If by contract the
operator is bound to be'held primarily and solely responsible for
compliance with the standards, the same shall not relieve the
owner of the requirement to exercise due diligence to assure that
the required compliance by operators are met. In the event that the
ownership of the facility is transferred to another person, the
previous owner shall notify the new owner of the standards and
the conditions set for the operation of said facility, and the laws
and regulations that the new owner or operator has to comply with.
The standards for operation of waste treatment facility may be
made more stringent by five percent (5%): Provided, That the same
shall be effected ten (10) years following the commencement of the

operation of the facility established after the effectivity of this Act.


10

Sec. 7. (a) Fiscal incentives. - The following tax incentives
shall be granted to registered enterprise which shall invest in waste
treatment facilities:

1. Income tax holiday — within the first seven (7) years of its

oe

12

13

14

15

16

7

18

19

20

21

operations, the treatment facility shall be exempt from

income taxes levied by the national government.

. Tax and duty exemption on imported capital equipment

and vehicles — within the first ten (10) years of operations,
registered enterprise which invested in the treatment
facility shall..enjoy tax and duty free importation of
machinery, equipment, vehicles and spare parts used for
setting up the treatment facility: Provided, That the
importation of such machineries, equipment, garbage
collection vehicles, and spare parts shall comply with the
following conditions:

i. They are not manufactured domestically in sufficient
quantity, of comparable quality and reasonable
prices;

ii. They are reasonably needed and will be used
exclusively by the registered enterprise in the

manufacture of its products, unless prior approval of

10


10

cB

12

13

14

16

7

18

19

20

21

i

the board is secured for the part-time utilization of
said equipment in a non-registered activity to
maximize usage thereof or the proportionate taxes
and duties are paid on the specific equipment and
machinery being permanently used for non-
registered activities; and
iii. The importation of such machinery, equipment,
vehicle and spare parts has been approved by the
Board of Investment (BOI) of the Department of Trade
and Industry (DTI).
Provided, further, That the sale, transfer or disposition of
such machinery, equipment, vehicle and spare parts within
five (5) years from the date of acquisition shall be prohibited,
without prior approval of the BOI, otherwise, the registered
enterprise and the yeadee, transferee, or assignee shall be
solidarily liable to pay twice the amount of tax and duty
exemption given it.
3. Tax Credit. on, Domestic Equipment —- A tax credit
equivalent to one hundred percent (100%) of the amount
of the value-added tax and customs duties that would have

been paid on the machinery, equipment, components,

n


10

1

12

14

15

16

7

18

19

20

2

12

parts and materials had these items been imported shall
be given to a contract holder who purchases machinery,
equipment, components, parts and materials: Provided,
That such are directly needed and shall be used exclusively
by the waste treatment facility.

4. Tax and Duty Exemption of Donations, Legacies and Gifts

— All legacies, gifts and donations to LGUs, enterprises or
private entities, including NGOs for the support and
maintenance of the program for setting up of treatment
technologies shall be exempt from all internal revenue
taxes and customs duties, and shall be deductible in full
from the gross income of the door for income tax purposes.

(b) Non-fiscal Incentives - LGUs, enterprises or private entities
availing of tax incentives under this Act shall also be entitled to
applicable non-fiscal incentives provided for under the Omnibus
Investments Code.

The NSWMC shall provide incentives to businesses and
industries that are engaged in the treatment of wastes which are
registered with the eamicttestial and have been issued the required
ECC in accordance with the guidelines established by the NSWMC.

Such incentives shall include simplified procedures for the

12


19

20

2B

importation of equipment, spare parts, new materials, and
supplies, and for the export of processed products.

(c) Financial Assistance Program - Government financial
institutions such as the Landbank of the Philippines (LBP),
Development Bank of the Philippines (DBP), Government Service
Insurance System (GSIS), and such other government institutions
providing financial service shall, in accordance with and to the
extent allowed by the enabling provisions of their respective
charters or applicable laws, accord high priority the extension of
financial services to individuals, enterprises, or private entities
engaged in putting up treatment facilities: Provided, That these
institutions shall allocate five percent (5%) of their loan portfolio to
waste treatment projects.

(d) Extension of Grants to LGUs -— Provinces, cities and
municipalities whose treatment facilities plans have been duly
approved by the NSWMC or who have been commended by the
NSWMS for adopting innovative waste treatment programs may be
entitles to receive grants for the purpose of developing their
technical capacities toward actively participating in the waste

treatment projects.

13


10

11

20

21

4

(e) Incentives to Host LGUs ~ Local government units who host
common treatment facilities shall be entitles to incentives as may

be determined by the NSWMC.

Sec. 8. Fines and Penalties. — Violations of the provisions of
this Act, or the standards or rules and regulations promulgated for
treatment facilities shall be fined or penalized under the provisions
of P.D. 1586, R.A. 6969, otherwise known as the Toxic Substances
and Hazardous and Nuclear Waste Control Act of 1990, R.A. No.
8749, otherwise known as the Philippine Clean Air Act of 1999,
R.A. 9003, and R.A. 9275, otherwise known as the Philippine
Clean Water Act of 2004. For waste-to-energy facilities, the penal
schemes established under the Philippine Grid Code and
Philippine Distribution Code pursuant to RA No. 9136, also known
as the Electric Power Industry Reform Act of 2001 shall likewise

apply for this purpose.

Sec. 9. Implementing Rules and Regulations. - The DENR,
in coordination with the NSWMC, Department of Energy, BOI,
Bureau of Internal Revenue, the Bureau of Customs, academe or

research institutions, and other concerned agencies, shall

14


10

cE

13

4

15

16

7

x 15

promulgate the implementing rules and regulations for the Act,

within three (3) months after its enactment.

Sec..11. Separability Clause. — If any part or section of this
Act is declared unconstitutional, such declaration shall not affect

the other parts of sections of this Act.

Sec. 12. Repealing Clause. — Section 20 of R.A. No. 8749 is
hereby repealed. Provision of R.A. No. 9003, and other laws,
presidential decrees, executive’ orders, rules and regulations
inconsistent with any provisions of this Act shall be deemed

repealed or modified accordingly.
Sec. 13. Effectivity. - This Act shall take effect fifteen (15)
days after publication in the Official Gazette or in any newspaper

of general circulation.

Approved,