Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___________ 
INTRODUCED BY REP. JOSE “BONG” J. TEVES, JR. 
EXPLANATORY NOTE 
The Local Government Units’ (LGUs) role is vital in nation building through the 
decentralization of important governmental functions to the local level such as environment, 
public health, infrastructure, among others. The State recognizes the policy for fiscal 
decentralization of LGUs as contemplated in Local Government Code. Considering the vital 
role of LGUs in nation building and the policy for fiscal decentralization, the State further 
recognizes the existing gaps that need to be addressed such as the insufficient share of the 
LGUs in the National Budget. 
It is a known fact that municipalities, especially those in the fifth and sixth class, and 
the barangays only depend on their share in the Internal Revenue Allotment (IRA). While the 
R.A. 9003 or the Ecological Solid Waste Management Act (ESWMA) mandates every 
municipality and barangay to implement the collection and processing of solid wastes from 
source, it requires enormous amount of funding which the municipalities and barangays cannot 
sustain. The IRA that the municipalities and barangays are receiving is only sufficient for the 
maintenance and other operating expenses (MOOE) of the said LGUs and cannot further 
suffice to implement its mandate under R.A. 9003. 
July 20, 2022
2:08 am
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This bill proposes the provision of additional funds, herein referred to as the Municipal 
and Barangay Environment Fund (MBEF), to the Municipal and Barangay LGUs to fully 
comply with its mandate in the implementation of R.A. 9003. The MBEF shall enable the 
Municipal LGUs to be active participants in nation building especially with environmental 
concerns in their respective territorial jurisdiction. 
 
In view of the foregoing, the approval of this bill is earnestly sought. 
 
 
 
 
 
 
 
HON. JOSE “BONG” J. TEVES, JR. 
 
 
 
 
 
                      Representative 
 
 
 
 
 
                       TGP Partylist 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___________ 
INTRODUCED BY REP. JOSE “BONG” J. TEVES, JR. 
AN ACT 
INSTITUTIONALIZING BUDGET REFORM THAT WILL ENSURE THE 
EQUITABLE DISTRIBUTION OF FUNDS FOR ALL MUNICIPAL AND BARANGAY 
LOCAL GOVERNMENT UNITS FOR THE PURPOSE OF IMPLEMENTATION OF 
ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000 (R.A. 9003), 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. — This Act shall be known as “Municipal and Barangay 
Environmental Budget Development Act of 2022”. 
SEC. 2. Declaration of Policy. –  It is the policy of the state in accordance with the 
Constitution to protect and advance the right of the people to a balanced and healthful ecology 
in accordance with rhythm and harmony of nation. It is also a declared policy of the State that 
territorial and political subdivisions shall enjoy genuine and meaningful local autonomy to 
enable them to attain their fullest development as self-reliant communities and make them more 
effective partners in attainment of national goals. Further, the State acknowledges that there 
exists a fiscal gap between the expenditure responsibilities of the Local Government Units 
(LGUs) and their fiscal capacity. Furthermore, it is the policy of the State to ensure that 
sufficient financial resources for development in accordance with law are available to LGUs 
with corresponding accountability of improving public services. 
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Therefore, the State recognizes that inclusive and sustainable growth can be truly 
achieved only by providing LGUs with adequate resources and technical capacities that will 
promote meaningful development. 
 
SEC. 3. Scope. –  This Act shall apply to the implementation of National and Local 
Government Solid Waste Management Plans in accordance with Republic Act 9003 otherwise 
known as the Ecological Solid Waste Management Act of 2000. 
 
SEC. 4. Purpose. — The purpose of this Act is to create an exclusive special fund in 
order to bridge the existing fiscal gap between the expenditure responsibilities of the municipal 
and barangay LGUs and their fiscal capacity in the implementation of R.A. 9003. Further, the 
fund shall be used solely by all municipal and barangay LGUs to finance their respective 
ecological and environmental projects, activities and programs (PAPs) identified in their 
approved Solid Waste Management Plans (SWMP). 
 
SEC. 5. Formula for Environmental Management Fund. – The National 
Government shall guarantee and provide an annual fund referred to as “Municipal and 
Barangay Environmental Fund”. The Municipal and Barangay Environment Fund (MBEF) of 
all municipalities and barangays shall be computed based on the following formula, to wit: 
 
The share of each municipal and barangay LGU in the Internal Revenue Allotment 
(IRA) in the year immediately preceding the passage of the General Appropriations Act 
(GAA) shall be multiplied by five (5) percent to ascertain the MBEF allocation: 
 
(The IRA share of each municipal and barangay LGUs in the year immediately 
preceding the passage of GAA x 5% = MBEF) 
 
SEC. 6. Appropriations. – To carry out the provisions of this Act, the total amount of 
the MBEF for all municipalities and barangays shall be included in the General Appropriations 
Act. The MBEF shall be an added fund to each municipal and barangay LGUs which is separate 
from the IRA and shall be sufficient to implement the National and Local Government Solid 
Waste Management Plans of all municipalities and barangays in accordance with R.A. 9003. 
  


Each municipal and barangay LGUs shall at all times receive the full amount of the 
MBEF. The MBEF shall be automatically and directly released to the municipal and barangay 
LGUs at the start of the fiscal year or on quarterly basis within ten (10) days at the start of each 
quarter. No lien or any other imposition of whatever nature may be imposed by the National 
Government against the said fund. 
 
SEC. 7. Role of the Barangay Local Government Unit. — The Barangay LGU shall 
be responsible in the purchasing and collection of recyclable wastes from households and 
commercial establishments within their respective territorial jurisdiction. The MBEF of the 
Barangay LGUs shall be utilized exclusively for this purpose. Further, the Barangay LGU shall 
then transport the collected recyclable wastes to the local recycling facility or may opt to resell 
the collected recyclable wastes to local recycling centers. 
 
SEC. 8. Role of the Municipal Local Government Unit. — Disbursement of MBEF 
shall be in accordance with the purpose stated in Section 4 of this Act. The PAPs allowed shall 
include but not be limited to the following, to wit: 
(a) 
Collection and transport of solid waste; 
(b) 
Recycling program; 
(c) 
Education, awareness, and training program; 
(d) 
Establishment of Materials Recovery Facility; and 
(e) 
Establishment of Waste Management Facilities such as: 
a. 
Controlled Dump Sites; and 
b. 
Sanitary Land Fills 
(f) 
Solid Waste Management Plans (SWMP) 
 
SEC. 9. Expenditures Not Covered. — No amount shall be disbursed to expenses that 
are not related to or connected with the PAPs identified in the LGUs’ respective approved 
SWMP such as but not limited to: 
 
(a) 
Unnecessary administrative expenses such as cash gift, medical assistance, 
bonuses and the like; 
(b) 
Travelling expenses of LGU officials whether domestic or international ; 


(c) 
Construction, repair or refurbishing of facilities not related in the implementation 
of the LGUs’ respective SWMP; 
  
(d) 
Other 
expenditures that 
are 
not 
related and 
unnecessary 
in
 the implementation of their respective SWMP. 
 
The MBEF shall not be used to finance PAPs that may duplicate or overlap with PAPs 
that are being implemented or funded by the National Government Agencies. 
 
SEC. 10. Solid Waste Management Plans. — Consistent with Section 16 of R.A. 
9003, every LGU shall create their respective 10-year solid waste management plans consistent 
with the National Solid Waste Management Framework: Provided, that waste management 
plan shall be for the re-use, recycling and composting of wastes generated in their respective 
jurisdictions, and segregation at source. 
 
SEC. 11. Oversight Evaluation. — An Oversight Evaluation Committee shall be 
created and be responsible for the monitoring and evaluation of the implementation of the PAPs 
through the MBEF based on the Municipal and Barangay LGUs SWMP. The Committee shall 
be composed of: 
 
(a) 
Undersecretary for Local Government of the Department of Interior and 
Local Government (DILG); 
(b) 
Undersecretary for Solid Waste Management and Local Government Unit 
of the Department of Environment and Natural Resources (DENR); 
(c) 
Member for Recycling Industry of the National Solid Waste Management 
Commission; 
(d) 
Undersecretary for Local Government and Regional Operations Group of 
the Department of Budget and Management (DBM); 
(e) 
Executive Director of the Bureau of Local Government Finance of the 
Department of Finance (DOF). 
 
A Technical Support Unit may be created by the Oversight Evaluation Committee but 
shall be within the administrative structure of the DILG. 


 
SEC. 12. Implementing Rules and Regulations. — For effective implementation, the 
DENR and DBM shall jointly formulate the necessary Implementing Rules and Regulations 
within sixty (60) days after the effectivity of this Act. 
  
SEC. 13. Penal Provision. - Withholding the release of the MBEF as defined under 
Section 5 of this Act shall be unlawful. Any person who withhold the release of the MBEF 
shall be prosecuted for violation of applicable provisions of the Revised Penal Code of the 
Philippines and applicable special laws. 
 
SEC. 14. Congressional Oversight Committee. – The House of Representatives or 
the Senate shall perform the necessary oversight function and shall have the power to monitor 
and evaluate the implementation of this Act. 
 
SEC. 15. Congressional Review. — The Congress through their respective appropriate 
Committees shall conduct a review of the accomplishments, impact, and performance of the 
municipal and barangay LGUs for purposes of determining remedial legislation. Congressional 
Review shall be held after five (5) years after the effectivity of this Act. 
 
SEC. 16. Suppletory Application of Misting Laws. — The provisions of Republic 
Act No. 7160 also known as the Local Government Code of 1991, Republic Act 9003 also 
known as the Ecological Solid Management Waste Act of 2030, and other laws consistent with 
this Act shall have suppletory effect. 
 
SEC. 17. Repealing Clause. — All laws, presidential decrees, executive orders, 
presidential proclamations, rules and regulations or parts thereof contrary to or inconsistent 
with this Act are hereby repealed, superseded or modified accordingly. 
 
SEC. 18. Separability Clause. — Any portion of this Act that may be declared 
unconstitutional or invalid shall not have the effect of nullifying other portions or provisions 
hereof, as long as such remaining provisions can still subsist and be given effect in their 
entirety. 
 


SEC. 19. Effectivity. — This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
  
Approved,