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

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 4419

Introduced by
Honorable DAVID “Jay-Jay” C. SUAREZ and
Honorable ANNA MARIE VILLARAZA-SUAREZ

EXPLANATORY NOTE

This bill seeks to legalize the incineration of waste. Incineration is a method of waste
treatment involving the burning of organic materials found in waste. Incineration and other
high-temperature are called “thermal treatment”. Particularly,
they involve converting waste materials into ash, flue gas, and heat. The ash mostly consists
of inorganic components of waste and can be in the shape of solid lumps or particulates
carried by the flue gas. The flue gases are supposed to be cleaned of particulate and gaseous
contaminants before being released into the air. Sometimes, the heat generated is used in
useful ways like in producing electricity.

Waste management has become a serious problem brought about by an increasing
population and rapid urbanization in the country, waste generation will also rapidly increase
within the next few years. With this scenario, the need for measures to effectively deal with
the problem of waste disposal in the country has never been more imperative than now

However, waste management entails equally serious environmental concerns. Hence, this
means that waste must not only be properly disposed of, but also requires that the disposal of
waste would not become a significant environmental burden.

In response to the looming garbage problem in the country, Republic Act No. 9003 or
the ‘Ecological Solid Waste Management Act of 2000’ was enacted mandating the adoption
of a systematic and comprehensive ecological solid waste management program that ensures
the protection of public health and the environment through the implementation of best
environmental practices. The law specifically promotes the proper segregation, collection,
transport, storage, treatment and disposal of solid waste, and the exploration of the potentials
and benefits of recycling waste products in addressing waste management problems.

In 1999, Republic Act No. 8749, otherwise known as the “Clean Air Act” was passed
which outlines government measures to reduce air pollution and incorporate environmental
protection into its development plans. The provisions of this Act extend to the Ozone


Depleting Substances (ODS) that significantly deplete or otherwise modify the ozone layer,
and to Persistent Organic Pollutants (POPs) which are organic compounds persisting in the
environment, chemical and biological degradation, including but not limited to dioxin, furan,
and other toxic substances potentially damaging to human and animal health and the
ecosystem. Some of these toxic substances are emitted by a process known as incineration, a
method of waste disposal. Hence, the prohibition of the said law on the use of incinerators.

Incineration reduces the volume of waste very effectively and destroys disease-
causing bacteria. It is arguably suitable for use in the country in the light of current
difficulties in establishing final disposal sites (landfills) due to our limited land ‘space. More
importantly, incinerators can be used for generating electricity, known as waste-to-energy
(WTE) or energy recovery technologies. Although there are serious environmental concems
about incineration, advances in emission control designs, along with strict standards and
‘monitoring systems have caused large reduction of pollution in the atmosphere. In fact, The
Department of Health (DOH) supports waste incineration particularly for medical and
hazardous wastes since these types of waste are often too dangerous to compost or cannot be
recycled or reused. Moreover, some countries allow the incineration of human anatomical
waste, discarded medicines, or solid items contaminated with blood and body fluids.

Incineration plants are able to reduce the mass of waste by 95% to 96%. The decrease
in waste is determined by the recovery level and decomposition of substances. Even though
incineration does not substitute the need for landfills, it has been able to reduce the quantity
of waste in landfills.

Incineration has numerous benefits especially in terms of destroying contaminant
medical wastes and other life-risking garbage. Also, incineration largely utilizes waste-to-
energy technology. In Japan, for example, thermal treatment is very popular since they have a
shortage of land. Moreover, the energy produced by incineration plants is in high demand in
nations such as Sweden and Denmark.

‘The ban on incineration was premised on the need to reduce the release of greenhouse
gases like carbon dioxide (CO2), methane, sulfur dioxide (SO2) and nitrous oxide (NO2)
which bring about global warming and induce climate change. It was also meant to reduce the
release of carcinogenic organic air pollutants, principally the highly toxic dioxins and furans.

Ironically, the ban on incineration achieves the opposite result. After the municipal
wastes are sorted and the non-biodegradable wastes like plastics, metals and glass recovered
and recycled, the remaining organic biodegradable wastes are finally disposed properly in
industrial scale in three ways: 1) sanitary landfills with or without methane gas recovery, 2)
incineration for steam and electricity generation, or 3) converted into some form of powdered
solid fuel and also into gasoline and fuel-oil like products

Hence, the realistic choice for now for most countries/cities is between sanitary
landfills versus incineration.

However, studies have shown that sanitary landfills with methane recovery systems
produce 2-3 times more carbon dioxide equivalent, sulfur dioxide and nitrous oxide than
incineration electricity systems per kilowatt hour of power generated.

The less capital-intensive, easier to manage landfills without methane capture are
much worse because the escaping methane has 34 times more global warming potential
compared with carbon dioxide.


Thus, for the purposes of mitigating global warming and cleaner air, incineration is
the far better technological option.

Additionally, both options can generate electricity. Sanitary landfills with methane
Tecovery, generate power in the order of 44-84 kilowatt per hour per ton of waste. Modem
incinerators on the other hand generate 450-930 kilowatt per hour per ton of waste, or an
efficiency factor of 10, in favor of incineration.

Our Clean Air Act got its priorities mixed up. Incineration, especially with the
modem plants, are more benign to people and the environment than sanitary landfills,

Many progressive and environmentally conscious countries have adopted incineration
as the preferred waste-to-energy option in handling municipal solid wastes. Denmark,
Sweden, Switzerland, The Netherlands, Germany, France and Italy are leading the way in
Europe. Sweden even imports 700,000 tons of solid wastes each year to keep its incinerators
running efficiently

Closer to home, the tiny island city state of Singapore which generates close to 9,000
tons of waste per day similar to Metro Manila has five operating incinerators.

Metro Manila is running out of dumpsites for the 9,000 tons of garbage it generates
every day. The problem can only get worse. But suitable landfill sites are more and more
4ifficult to find as the surrounding communities rise up in protest to the stench, sanitation and
public order problems landfill sites bring with them.

‘The Clean Air Act (RA 8749) shortsightedly closed the option to safely and neatly
dispose municipal solid wastes by incineration which generate much needed electricity
without unduly contributing to global warming and spoiling the air.

On the contrary, the residual biodegradable organic wastes burned in incinerators are
really carbon-neutral and are treated by some countries as renewable sources, much like
bioethanol and biodiesel, meriting tax incentives rather than being banned.

This bill aims to amend Republic Act 8749 and lift the blanket prohibition on the use
of incinerators in the disposal of solid wastes in the country. The proposed measure also
seeks to take advantage and promote the use of recent advances in waste-to-energy
technology. This technology provides for the safe disposal of waste without harmful
emissions to the atmosphere. Finally, the bill sustains the primacy of using non-bum
technologies in waste disposal such as recycling and waste segregation as mandated by the
Ecological Solid Waste Management Act.

For the foregoin, immediate consideration and approval of this bill is
urged.
fay” QUAREZ ANNA MARIE “SUAREZ
ALONA Partylist
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 4419

Introduced by
Honorable DAVID “Jay-Jay” C. SUAREZ and
Honorable ANNA MARIE VILLARAZA-SUAREZ

AN ACT
PROMOTING THE USE OF WASTE-TO-ENERGY TECHNOLOGY, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 8749, OTHERWISE KNOWN AS THE
‘CLEAN AIR ACT OF 1999

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

Section 1. Title — This Act shall be known and referred to as the “Waste-To-Energy
Technology Act of 2019”;

Sec. 2. Section 5 of Republic Act No. 8749, otherwise known as the “Clean Air Act of 1999”
is hereby amended to read as follows:

Section 5. Definitions. — As used in this Act:
a.) Xxx

Y.) Waste-To-Energy Technology — refers to:

a.) Technology that involves the conversion of various elements of solid waste
susch as but not limited to paper, plastics, or wood to generate energy by either
thermochemical or biochemical processes;

b.) Any waste treatment that is able to produce energy from a waste material;

¢.) Technology which reduces or eliminates waste that otherwise would be
transformed to a greenhouse gas.

Sec. 3. Section 15 of the same Act is hereby amended to read as follows:

Section 15. Air Pollution Research and Development Program. ~ The Department, in
coordination with the Department of Science and Technology (DOST), other agencies, the
private sector, the academe, NGO's and PO’s shall establish a National Research and
Development Program for the prevention and control of air pollution, AND FOR THE


DEVELOPMENT AND UTILIZATION = OF_~—_—WASTE-TO-ENERGY
TECHNOLOGIES. The Department shall give special emphasis to research on and the
development of improved methods having industry-wide AND COMMUNITY-WIDE
application for the prevention and control of air pollution AND THE UTILIZATION OF
WASTE-TO-ENERGY TECHNOLOGIES. Such a research and development program
shall develop air quality guideline values and standards in addition to intemationally-
accepted standards of maintaining environmentally-sound practices in waste treatment. It
shall also consider the socio-cultural, political and economic implications of air quality
management, pollution control. and ~WASTE-TO-ENERGY TECHNOLOGY
UTILIZATION.

Sec. 4. Section15 of the Act is hereby further amended by adding a sub-section to read as
follows:

Section 15-A. Waste-To-Energy Technology. - Pursuant to Section 15 of this
Act, Waste-To-Energy Technology is hereby promoted with the following objectives:

a.) Reduce the volume of original waste and at the same time produce energy
from the same;

b.) Conduct waste stream analysis to prevent situations where ash becomes a
hazardous waste;

¢.) Treatment all types of waste, including hazardous and toxic materials,
without leaving behind waste residues and harmful emissions to the atmosphere;

4.) Recover all valuable contents of wastes at highly economic conditions;

¢.) Recycle valuable materials and recover more energy;

£) Continuously promote developed technology that produces no harmful
emissions or residues, complying with the standards and regulations which protect the
environment.

Sec. 5. Compliance. - Incinerators which are compliant with the emission standards set by
Section 19 of Republic Act 8749 shall be allowed as waste-to-energy facilities in
municipalities and cities;

Sec. 6. The same Act is hereby further amended by repealing the original Section 20 of the
said Act and amending the same to read as follows:

Sec. 20. [Ban-on—Ineineration] Allowing Incineration. — Incineration shall be
allowed for the treatment of waste, and in effect, the conversion of such waste
into energy. To control air pollution, the incinerator shall be designed in such a
way that product combustion gases shall be properly treated and harmful
emissions shall be removed before gases are released into the atmosphere.
Advanced emission control designs and stringent regulations shall ensure that
wastes are disposed of without detrimental impact to the improvement.

Traditional and/or small-scale methods of community/neighborhood
incineration for sanitation purposes or “siga”, agricultural, cultural, health and
food preparation and crematoria incineration shall continue to be allowed
subject to existing rules and regulations.

Local government units [are-hereby-mandated] shall continue to promote,
encourage and implement in their respective jurisdiction a comprehensive ecological
waste management that includes waste segregation, recycling and composting and
the use of waste-to-energy technologies.


With due concern on the effects of climate change, the Department shall
promote the use of the state-of-the-art, environmentally-sound and safe non-
‘bum technologies for the handling, treatment, thermal destruction, utilization, and
disposal of sorted, unrecycled, uncomposted, biomedical and hazardous wastes.

Sec. 7. Local Government Solid Waste Management Plans subject for approval. Proposals
and plans to establish incinerator facilities must originate from the local solid waste
‘management boards of the LGUs and effected through an ordinance in consonance with their
respective 10-year solid waste management plans consistent with the national solid waste
management framework.

All local government solid waste management plans shall be subject to the approval
of the National Solid Waste Management Commission;

Sec. 8. Environmental Compliance Certificate. — The establishment of incinerators shall be
subject to an environmental impact assessment as required by law prior to implementation.

No actual implementation of such activities shall be allowed without the required
Environmental Compliance Certificate.

Sec. 9. Regulation of Waste-To-Energy 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 by this Act and its implementing rules and regulations: Provided,
That these technologies shall be fitted with equipment that will continuously monitor, record
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 thermal treatment units shall treat wastes at a temperature of not less
than eight hundred fifty degrees centigrade (850°C)

Sec. 10. 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 the 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. 11. 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 the use of waste-to-
energy technologies.


Sec. 12. Role of the National Solid Waste Management Commission. - 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,
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. 13. Incentives. — (a) Fiscal Incentives. — The following tax incentives shall be granted to
registered enterprises which shall invest in waste to energy technology:

1. Income Tax Holiday. ~ Within the first seven (7) years of its operations, the
treatment facility shall be exempt from income tax levied by the national government.

2. Tax and Duty Exemption on Imported Capital Equipment and Vehicles. ~ Within
the first ten (10) years of operations registered enterprises which invested in the
treatment facility ‘utilizing WTEs 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 competitive prices; and

ii, They are reasonably needed and will be used exclusively by the registered
enterprise in the operation of the facility; 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 (DT1),

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 vendee.
transferee, or assignee shall be solitarily liable to pay twice the amount of tax and duty
exemption given it.

3. Tax and Duty Exemption of Donations, Legacies and Gifts. - All legacies, gifts and
donations to LGUs, enterprises or private entities, including nongovernment
organizations (NGOs) for the support and maintenance of the program for setting up
of treatment technologies shall be exempt form all internal revenue taxes and customs
duties, and shall be deductible in full from the gross income of the donor for income
tax purposes.

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

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 services 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 using WTE’s: Provided, That these institutions shall allocate
five percent (5%) of their loan portfolio to waste treatment projects

Sec. 14. Fines and Penalties. — Violations of the provisions of this Act or its IRR, 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. No. 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 R.A. No. 9136, also known as the Electric Power Industry Reform Act of 2001
shall likewise apply for this purpose.

Sec. 15. 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 concemed agencies, shall promulgate the
implementing rules and regulations for this Act, within three (3) months after its enactment.

Sec. 16. Report to Congress ~ The NSWMC shall submit an annual report to the President of
the Philippines and to Congress on the status of the disposal management and the use of
treatment facilities in the country not later than March 30 of every year following the
approval of this Act.

Sec. 17. Separability Clause. ~ If any part or section of this Act is declared unconstitutional,
such declaration shall not affect the other parts or sections of this Act.

Sec. 18. Repealing Clause. ~ All laws, orders, decrees, rules and regulations and issuances or
arts thereof inconsistent with the provisions of this Act are hereby repealed or amended,
accordingly.

Sec. 19. Effectivity. - This Act shall take effect fifteen (15) days after publication in the
Official Gazette o in a newspaper of general circulation.

Approved.