“EP RE,
Ke SEN

Republic of the Philippines “yy 2)
HOUSE OF REPRESENTATIVES /“ RECEIVED “24
Quezon City 8 -

EIGHTEENTH CONGRESS,
Second Regular Session

House Bill No._7128

Introduced by Representative FLORIDA “RIDA” P. ROBES

EXPLANATORY NOTE
Section 16, Article II of the 1987 Constitution provides:

“The State shall protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and
harmony of nature.”

‘Twenty one years afier the enactment of Republic Act 8749 or the Philippine Clean Air
Act of 1999, solid waste management is still a major problem in the country. This has oftentimes
led to flooding, erosion, landslides, as well as posed health hazards to people living near sanitary
landfills. This is mainly due to the ban on incineration which has prevented solid waste managers
and experts into exploring more effective days of managing wastes.

Compounding the problem is the inability of local government units to construct and
operate their own sanitary landfills due to lack of financial capability. This has resulted into
many unwarranted cases filed against local government officials and employees.

This bills seeks to address the urgent solid waste issues in the country and allow
innovative ways to solve solid waste management problems by converting them to energy
without posing any harm to the environment.

‘Numerous studies and experiences from countries that employ waste-to-energy systems
have debunked concerns raised by some environmental groups that the latter cause the emission
of toxic or potentially toxic substances, such as dioxins.

‘The experiences of Canada, Japan and South Korea, countries that make use of waste-to-
energy systems, have shown that dioxin levels emitted are below the international standards.
Even the average lifespan in these countries have not been affected by the waste-to-energy
systems.

JUL 20 28m


This proposed bill will enable the country to make use of new, innovative and safe
technologies that will not only solve the garbage problem but also compliment energy generation
initiatives of the government.

Waste management in the country has tumed from bad to worse and this can only be
addressed by the implementation modern technological systems such as the waste-to-energy
technology.

In view of the foregoing, the passage of this measure is urged.

REP. FLORID/“RIDA” P. ROBES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

7128

House Bill No.

Introduced by Representative FLORIDA “RIDA” P. ROBES

AN ACT
ESTABLISHING THE USE OF ECOLOGICAL WASTE-TO-ENERGY MANAGEMENT
SYSTEM, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8749, OTHERWISE
KNOWN AS THE CLEAN AIR ACT OF 1999, AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as the “Ecological Waste-To-Energy
Management Act of 2020”.

SECTION 2. — Section 5 of Republic Act 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) xxKKx
y.)  Waste-to-Energy Management — refers to:
1. System by which technology is used to convert various elements of solid
waste such as but not limited to paper, plastic or wood, to generate energy by
either thermochemical or biochemical process;
2. Any waste treatment that is able to produce energy from a waste material;
3. Technology which reduces or eliminates waste that otherwise would be
transformed to a greenhouse gas.

Section 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, NGOs and POs shall establish a
National Research and Development Program for the prevention and control of air
pollution, AND FOR DEVELOPMENT AND UTILIZATION OF WASTE-TO-
ENERGY SYSTEMS. 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 SYSTEMS. Such a
research and development program shall develop air quality guideline values and
standards in addition to internationally-accepted standards of maintaining
environmentally-sound practices in waste treatment. It shall also consider the
socio-cultural, political and economic implication of air quality management,
pollution control and WASTE-TO-ENERGY SYSTEM UTILIZATION.

Section 4. 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.

Section 5. Waste-To-Energy System. — A waste-to-energy system shall be exempted
from ban on incineration under Section 20 of Republic Act 8749, otherwise known as the Clean
‘Air Act of 1999; Provided, That the system shall comply with Section 19 of the said Act. The
waste-to-energy system shall be required to have arrangements with a sanitary lendfill as a
disposal site for any waste generated from its operations.

To contro! air pollution, the waste-to-energy system 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 shail ensure that wastes are disposed of without detrimental impact to the
environment.

In addition to the provisions of this Act, the segregation, collection, transfer, storage, and
transport of solid waste as feedstock for a waste-to-energy system, and the waste treatment
process of the waste-to-energy system shall be governed by Republic Act No. 9003 and Republic
Act 8749, while the energy production aspect of the waste-to-energy system shall be governed
by Republic Act 9136, otherwise known as the Electric Power Industry Reform Act of 2001,
Republic Act 9367, otherwise known as the Biofuels Act of 2006, and Republic Act No. 9513.
otherwise known as the Renewable Energy Act of 2008, whichever is possible.

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 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.


Section 6. Role of the Department of Environment and Natural Resources. - With due
concer 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, unrecycied, uncomposted, biomedical and
hazardous wastes.

Section 7. Establishment of Sanitary Landfill. - Provinces are encouraged to establish
‘one (1) sanitary landfill in their respective territories. The LGU shall be responsible in
identifying and allotting appropriate site for the construction of sanitary landfill, the cost of
construction, operation and maintenance shall be shouldered by the LGU and the National

Government.

Section 8. Local Government Solid Waste Management Plans subject for Approval. ~
Proposals and plans to establish incinerator facilities must originate from solid waste
management boards of the LGUs and effected through an ordinance in consonance with their
respective ten (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.

Section 9. Environment Compliance Certificate. — The establishment of waste-to-energy
system 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 Certificaie by the Department of Environment and Natural
Resources (DENR).

Section 10. Regulation of Waste-To-Energy. — 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).

Section 11. 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.


Section 12. Role of the 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.

Host LGUs are authorized to enter int

(a) Clustering arrangements with other LGUs for a common waste-to-energy
facility, on their own or upon recommendation of the Provincial or City Solid
‘Waste Management Board;

(6) Long-term contracts with waste-to-energy facilities, on their own or with
clustered LGUs, and

(c)__ Joint ventures, public-private partnerships, cooperatives undertakings
under Sec. 33 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, as amended, and other contractual arrangement
allowed by other existing laws, rules and regulations, and their respective charters
for the establishment of waste-to-energy facilities; Provided, That LGUs shall be
allowed to determine the standards and quality of technology and services of a
waste-to-energy facility provider.

Section 13, Role of the National Solid Waste Management Commission. ~ The
NSWMC shall approve or deny the plan, or supplemental 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 14. Incentives. — (a) Fiscal incentives, - The following tax incentives shall be
granted to registered enterprises which shall invest in waste-to-energy technology.

4. 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 paris 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 Investments (BOI) of the Department of Trade and Industry
wr.

Provided, further, That the sale, transfer or disposition of such machinery,
equipment, vehicle and spare parts within five (5) years from date of
acquisition shall be prohibited, without prior approval of the BOL.

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.

iii, 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 sctting up of treatment technologies shall
be exempt from all intemal revenue taxes and customs duties, and shall be
deductible in full from 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.

Section 15. 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, otherwise known as the Toxic Substances and
Hazardous and Nuclear Waste Control Act of 1990, R.A. 8749, otherwise known as the
Philippine Clean Air Act of 1999, R.A. No. 9003, and R.A. 9725, 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.
9136, also known as the Electric Power Industry Reform Act of 2001 shall likewise apply for
this purpose.

Section 16. 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 promulgate the
Implementing Rules and Regulations for this Act, within three (3) months after its enactment.

Section 17. Report to Congress. - The NSWMC sball 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.

Section 18. Separability Clause. - If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.

Section 19. Repealing Clause. - This franchise shall be subject to amendment, alteration
or repeal by the Congress of the Philippines when the public interest so requires and shall not be
interpreted as an exclusive grant of the privileges herein provided for.

Section 20. Effectivity - This Act shall take effect fifteen (15) days from the date of its
publication, upon the initiative of the grantee, in at least two newspapers of general circulation in
the Philippines.

Approved,