eye
DATE: Q iY
TIME:

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5706
House Bill No.

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

eee

EXPLANATORY NOTE

Waste-to-energy is the process of generating energy in the form of
electricity and/or heat from the combustion or gasification of
municipal solid waste through the use of environmentally friendly
thermal technologies.

Today, the world generates around 1.3 billion tons of municipal solid
waste. By 2025, it is predicted that the world could generate 2.2
billion tons of municipal solid waste per year. Currently, the most
utilized method of municipal solid waste disposal is through the use
of landfills. This method poses a huge threat to our environment and
health. Considering that the increase of the amount of municipal
solid waste is proportionate to the growth of population around the
world, a solution to minimize the use of such method must be
applied.

This Bill seeks to promote the use of waste-to-energy as a renewable
source of energy. It is quite possible that part of the reason why our
country has not yet maximized this method is because of the lack of
awareness as regards waste-to-energy methods.

The importance of the promotion of waste-to-energy methods must
be given emphasis. Through the passage of this Bill, our country will
be able to take a step forward into reducing the use of landfills as a

ix

By
vA\



method of disposal of waste at the same time making use of these
wastes in an environmentally friendly manner.

As such, the passage of this Bill is earnestly sought.

ome
ERIC OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. pues

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT PROMOTING AND ESTABLISHING THE USE OF WASTE
TO ENERGY TECHNOLOGIES AND FACILITIES AS AN
ALTERNATIVE SOURCE OF RENEWABLE ENERGY
TECHNOLOGIES AND FOR OTHER PURPOSES

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

SECTION 1. Short Title - This Act shall be known as the
“Waste-To-Energy Act of 2019”.

SECTION 2. Declaration of Policy - It shall be the policy of
the State to protect and advance the right of the people to healthful
ecology. To this end, the State shall promote the use of waste-to-
energy technologies and facilities as an alternative source of
renewable energy in order to contribute in the constant need to
protect the environment and at the same time address the growing
demand for energy in the country.


SECTION 3. Definition of Terms. -
a) Renewable energy refers to energy obtained from sources that
are essentially inexhaustible or non-depletable source of energy
such as, but not limited to solar, wind, hydro, geothermal, sea
waves or tidal current and municipal solid waste; unlike natural
gas, coal and oil, of which there is a finite supply;
b) Waste-to-Energy refers to the process of generating energy in the
form of electricity and/or heat from the combustion or
gasification of municipal solid waste through the use of
environmentally friendly thermal technologies;
Municipal solid waste refers to waste produced from activities
within the local government units which include bus is not
limited to household, commercial, non-hazardous institutional
and industrial waste, street litters, construction debris,
agricultural waste and non-hazardous/non-toxic solid waste;
d) Person refers to a natural or juridical person.

¢|

SECTION 4. Waste-to-Energy technologies compliant with the
emission standards set by Section 29 of Republic Act No. 8749
otherwise known as The Philippine Clean Air Act shall be allowed as
waste-to-energy facilities in the local government units.

Pursuant to the purpose of this Act, Section 20 of R.A. 8749
shall be amended to read as follows:

“SECTION 20. Ban on Incineration. - Incineration, hereby
defined as the burning of municipal, bio-medical and hazardous
wastes, which process emits poisonous and toxic fumes, is hereby
prohibited: Provided, however, that the prohibition shall not apply to,
WASTE-TO-ENERFY FACILITIES USING MUNICIPAL WASTE AS
ENERGY SOURCE AND COMPLIANT WITH THE STANDARDS SET IN
SECTION 19 OF THIS ACT, traditional small-scale method of
community/neighborhood sanitation “siga”, traditional, agricultural,
health, and food preparation and crematoria: Provided, further, that
existing incinerators dealing with bio-medical wastes shall be phased
out within three (3) years after the effectivity of this Act: Provided,



finally, that in the interim, such units shall be limited to the burning
of pathological and infectious wastes, and subject to close monitoring
by the Department. “

SECTION 5. Role of Local Government Units in Setting Up
of Waste-to-Energy Facilities. — Pursuant to the relevant provisions
of Republic Act No. 7160 or the Local Government Code, the LGUs
shall be primarily responsible for the implementation and
enforcement of the provisions oOgf this Act within their respective
jurisdiction with the National Solid Waste Management Commission.

The setting-up of waste-to-energy facilities must originate
through its local solid waste management boards 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
subjected to the approval of the National Solid Waste Management
Commission.

SECTION 6. Environmental Impact Assessment. - Proposals
for putting up of waste-to-energy facilities shall be subject to an
environmental impact assessment as required by law before they are
adopted.

No actual implementation of such activities shall be allowed
without the required Environmental Compliance Certificate under
the Philippine Environmental Impact Assessment system. Where
such activities are allowed to be undertaken, the proponent, who is
the owner or operator of the waste-to-energy facility, shall plan and
carry them out in such manner as will minimize any adverse effects
and take preventive and remedial action when appropriate.

The proponent shall be liable for any damage due to lack of
caution and indiscretion.


SECTION 7. Owner and Operator. - Responsibility for
compliance with the standards in this Act shall rest with the owner
and/or operator of the waste-to-energy facility. If specifically
designated, the operator is considered to have primary responsibility
for compliance; however, this does not relieve the owner of the duty
to take all reasonable steps to assure compliance with these
standards and any assigned conditions. When the title to a disposal
is transferred to another person, the new owner shall be notified byu
the previous owner of the existence of these standards and of the
conditions assigned to assure compliance.

SECTION 8. Incentives. —

1. Fiscal Incentives. - Consistent with the provisions of Executive
Order 226, otherwise known as the Omnibus Investment Code,
the following incentives shall be granted:

a. Tax and Duty Exemption on Imported Capital Equipment
and Vehicles. - Within ten (10) years upon effectivity of
this Act, LGUs, enterprises or private entities shall enjoy
tax and duty free importation of machinery, equipment,
vehicles and spare parts used for setting up the waste-to-
energy facility: Provided, that the importation of such
machinery, equipment, vehicle and spare parts shall
comply within the following conditions:

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

ii, They are reasonably needed and will be used
actually, directly and exclusively for the
abovementioned activities;

iii. The approval of the Board of Investments of the
Department of Trade and Industry for the
importation of such machinery, equipment, vehicle
and spare parts.

Provided, further, that the sale, transfer or disposition of
such machinery, equipment, vehicle and spare parts,


without prior approval of the BOI within five (5) years from
the date of acquisition shall be prohibited, otherwise the
LGU concerned, enterpriser or private entities and the
vendee, transferee, or assignee shall be solitarily liable to
pay twice the amount of tax and duty exemption given it.

b. Tax Credit on Domestic Equipment. - Within ten (10) years
from the effectivity of this Act, a tax credit equivalent to
50% of the value of the national internal revenue taxes
and customs duties that would have been waived on the
machinery, equipment, vehicle and spare parts, had these
items been imported shall be given to enterprises, private
entities, including NGOs, subject to the same conditions
and prohibition cited in the preceding paragraph.

c. 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 the waste-
to-energy shall be exempt from all internal revenue taxes
and duties, and shall be deductible in full from the gross
income of the donor for income tax purposes.

2. 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 Investment Code.
The Commission shall provide incentives to businesses and
industries that are engaged in the waste-to-energy and which
are registered with the Commission and have been issued ECCs
in accordance with the guidelines established by the
Commission. Such incentives shall include simplified
procedures for the importation of equipment, spare parts, new
materials and supplies, and for the export of processed
products.

3. Financial Assistance Program - Government financial
institutions 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 to extend financial
service to individuals, enterprises, or private entities engaged
in putting up waste-to-energy facilities.

4. Extension of Grants to LGUs. - Provinces, cities and
municipalities with waste-to-energy facilities plans that have
been duly approved by the Commission for adopting innovative
waste-to-energy programs may be entitled to receive grants for
the purpose of developing their technical capacities toward
actively participating in the waste-to-energy program.

5. Incentive to Host LGUs. - LGUs who host common waste-to-
energy facilities shall be entitled to incentives as may be
deemed proper by the Commission.

SECTION 9. Lead Agency. - The National Solid Waste
Management Commission shall be the primary government
agency responsible for the implementation and enforcement of
this Act. The Commission shall approve or deny the waste-to-
energy plans of all LGUs within ten (10) days from its submission.

SECTION 10. Report to Congress. - The National Solid Waste
Management Commission shall submit an annual report to the
President and to Congress through the Committee on Energy of
Senate and House of Representatives respectively not later than
March 30 of every year following the approval of this Act on the
status of the waste-to-energy program in the country, the
progress of the waste-to-energy facilities and make the necessary
recommendations in areas where there is need for legislative
action.

SECTION 11. Joint Congressional Oversight Committee. -
There is hereby created a Joint Congressional Oversight
Committee to monitor the implementation of this Act. The


committee shall be composed of five (4) senators and five (5)
members of the House of Representatives to be appointed by the
Senate President and the Speaker of the House of Representatives
respectively.

The mandate given to the Joint Congressional Oversight
Committee under this Act shall be without prejudice to the
performance of the duties and functions by the respective existing
oversight committee of the Senate and the House of
Representatives.

SECTION 12. Implementing Rules and Regulations -
Within ninety (90) days from the promulgation of this Act, the
implementing rules and _ regulations for the proper
implementation of its provisions shall be formulated by the
appropriate government office or agency in coordination with all
the stakeholders and covered establishments and institutions.

SECTION 13. Separability Clause - If any provision of this
Act is declared invalid, the remainder or any of this provision hereof
not affected thereby shall remain in force and effect.

SECTION 14. Repealing Clause - All laws, decrees, executive
orders, presidential issuances and other administrative rules and
regulations or parts thereof which are inconsistent with this Act are
hereby repealed, amended or modified accordingly.

SECTION 15. Effectivity - This Act shall take effect fifteen (15)
days after its publication in at least two (2) national newspapers of

general circulation.

Approved,