Republic of the Philippmes
HOUSE OF REPRESENTATIVES
Queson Cit

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. sors

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT REGULATING THE USE OF TREATMENT TECHNOLOGY FOR
MUNICIPAL AND HAZARDOUS WASTES, REPEALING FOR THE PURPOSE
SECTION 20 OF REPUBLIC ACT NO. 8749, OTHERWISE KNOWN AS "THE
PHILIPPINE CLEAN AIR ACT OF 1999”

Republic Act No. 8749, otherwise known as the "Philippine Clean Air Act of 1999",
was enacted in 1999. Section 20 thereof prohibited the incineration of municipal
biomedical and hazardous waste, which process emits poisonous and toxic fumes.

Consistent with RA 8749, RA 9003. or "Ecological Solid Waste Management Act of
2000 excludes “incineration”. However. new technologies have emerged that made it
possible and feasible to convert waste into usable forms of energy including heat,
fuels and electricity. This conversion can occur through a number of processes such
as incineration. gasification, pyrolysis, anaerobic digestion, and landfill gas recovery.

Unfortunately, the Philippines cannot adhere to this available technology of
converting waste to energy because of the express prohibition on incineration in
Section 20 of the RA 8749. Thus, Section 20 of the said law is being repealed to
allow regulated thermal and other treatment technologies for the disposal of
municipal and hazardous wastes, or for the processing of any material for fuel. Also.
this bill imposes specific standards of thermal treatment units and levies
responsibility to the owners and operators of such

In view of the foregoing. the immediate passage of this bill is most earnestly sought.

Af



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. _8019
pit A bod AR ona 8, x Le Eo ae

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.
ee

AN ACT REGULATING THE USE OF TREATMENT TECHNOLOGY FOR
MUNICIPAL AND HAZARDOUS WASTES, REPEALING FOR THE PURPOSE
SECTION 20 OF REPUBLIC ACT NO. 8749, OTHERWISE KNOWN AS "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. Short Title. This Act shall be known and referred to as the "Regulation
of Waste Treatment Technology Act"

SECTION 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 it
implementing rules and regulation: 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 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).

SECTION 3. Role of the Deparment 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

SECTION 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.

The establishment of treatment facilities shall be facilitated by LGUs within a region
province, or strategically clustered LGUs in consonance with their ten (10) year solid


waste management plans made consistent with the national solid waste
management work 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),.

SECTION 5. Role of the National Solid Waste Management Commission (NSWMC)
Pursuant to the provisions of R.A. 9003, the NSWMC shall ensure the establishment
of a comprehensive solid waste management plan in all LGUs, which shal!
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. 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

SECTION 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 heid primarily responsibie 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 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
8 facility established after the effectivity of this Act

SECTION 7. Incentives. (a) Fiscal Incentives. The following tax incentives shall be
granted to registered enterprises which shall invest in waste treatment facilities:

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

2) Tax and Duty Exemption on Imported Capital Equipment and Vehicies. Within the
first ten (10) years of operations, registered enterprises 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 reasonabie prices,


(ii) They are reasonably needed and will be used exclusively by the registered
ise in the manufacture of its products, unless prior approval of the Board of
Investments (BOI) of the Department of Trade and Industry (DTI) is secured for the
part-time utilization of the 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:

(iii) The importation of such machinery, equipment, vehicle and spare parts has been
approved by the Board of Investments (BO!) of the Department of Trade and
Industry (DT!)

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 Credit on Domestic Equipment. A tax credit equivalent to one hundred
percent (100%) of the amount of the value-added tax and custom duties that would
have paid on the machinery, equipment, components, parts and materials had these
items been imported shall be given to a contract holder who purchases machinery,
equipment, component, 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 non-government
organizations (NGOs) for the support and maintenance of the program for setting up
of treatment technologies shall be exempt from all internal revenue taxes and
custom 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 the tax
incentives under this Act shall also be entitled to applicable non-fisca! 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 NSWMC and have been
issued the required Environmental Compliance Certificate (ECC) in accordance with
guidelines established by the NSWMC. Such incentives shall include simplified
procedures for the 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 Land
Bank of the Philippines (L8P), 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 in the extension of financial services to individuals, enterprises.
oF 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 NSWMC for adopting innovative waste treatment program

(e) Incentives to Host LGUs. LGUs who host common treatment facilities shall be
entitled to incentives as may be determined by the NSWMC.

SECTION 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
and penalized under the provisions of Presidential Decree No. 1586; Republic Act
No. 6969, otherwise known as the "Toxic Substances and Hazardous and Nuclear
Wastes Control Act of 1990", Republic Act No. 8749, otherwise known as the
"Philippine Clean Air Act of 1999", and Republic Act No. 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 Republic Act No. 9136, also known as the "Electric Power Industry
Reform Act of 2001” shail likewise apply for this purpose.

SECTION 9. Implementing Rules and Regulations. The DENR, in coordination with
the NSWMC, Department of Energy (DOE), BOI, Bureau of internal Revenue (BIR)
Bureau of Customs (BoC), academe or research institutions, and other concerned
agencies, shall promulgate the implementing rules and regulations for this Act, within
three (3) months after its enactment.

SECTION 10. Annua! Report. The NSVVMC shal! submit an annua! report to the
President of the Philippines and to Congress on the status of 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.

SECTION 11 Separability Clause. If any part or section of this Act is declared
unconstitutional, such declaration shail not affect the other parts or sections of this
Act

SECTION 12. Repealing Clause. Section 20 of Republic Act No. 8749 is hereby
repealed. Provisions of Republic Act No. 9003, and other laws. presidential decrees.
executive orders, rules and regulations inconsistent with any provision of this Act
shall be deemed repealed or modified accordingly

SECTION 13. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved.