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

Eighteenth Congress
First Regular Session

HOUSE BILLNO,_ 5401 _

Introduced by Representative Jocelyn Sy Limkaichong

EXPLANATORY NOTE

Solid waste management has been a recurring concern in the Philippines for several
decades. Various problems are associated with poor waste management such as
health risks, groundwater contamination, and exacerbation of flooding. In 2012, data
from the National Solid Waste Management Commission Secretariat reveals that
only about 4% or 56 local government units (LGUs) are using sanitary landfills and
such low compliance was attributed to the high cost needed to close dumpsites, and
the limited financial and technical assistance extended to the LGUs.

Republic Act 9003, also known as the Ecological Solid Waste Management Act, is
a landmark legislation passed in 2000 that was enacted to resolve waste problems in
the country. It has been lauded for its integrated approach to solid waste
management. However, more than a decade since this law’s enactment, it has yet to
be implemented to its full potential. Some of the compounding factors include weak
implementation of the law at the local level and the prevailing “Not in My Backyard
Attitude’ which is evident in limited coordination among local government units.

This bill seeks to promote waste to energy as a feasible approach to address the
pressing solid waste problem in the country. Waste to energy involves the process
of converting waste products into some form of energy. The waste to energy
approach involves thermal waste technology which includes waste incineration. It
has been observed to be one of the effective methods in dealing with municipal
wastes. However, Section 20 of Republic Act 8479 or the Philippine Clean Air Act
contains a prohibition on the incineration of municipal and bio-hazardous waste.
Furthermore, the Solid Waste Management Act has prescribed sanitary landfills as
the primary method for final waste disposal and explicitly excluded incineration.


Memorandum Circular 2002-05 of the Department of Environment and Natural
Resources clarified that any thermal treatment technology, whether burn or non-
burn, that meets the emission standard in Section 19 of RA 8749 is allowed to be
operated in the country. Accordingly, this bill indicates that incineration of toxic and
hazardous wastes shall only be allowed in state of the art, environmentally-sound
and safe facilities which are proven to emit minimal air pollutants and whose
concentrations meet the standards as provided for in RA 8749.

Municipal solid waste incineration technology and waste to energy facilities are
being utilized in several countries such as Singapore, Taiwan and Japan. Waste to
energy facilities are said to be able to reduce waste volume by 90% and has limited
environmental impact. Waste to energy plants have also been strongly considered
for their potential to offer an alternative to landfill for the disposable of non-
recyclable wastes.

The proposed bill aims to provide guidance in the regulation of waste treatment
technology and the implementation of waste to energy approach to ensure
compliance to standards and guidelines as indicated in the Clean Air Act. It outlines
the roles and responsibilities of concerned agencies such as the Department of
Environment and Natural Resources, Department of Energy, and National Solid
Waste Commission as well as local government units and operators of the facilities.
Finally, the bill seeks to amend Section 20 of the Clean Air Act to lift the ban on
incineration.

In light of the pressing problem of poor solid waste management in the country, th
immediate passage of this bill is urgently requested.



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

Eighteenth Congress
First Regular Session
HOUSE BILL No, 5492

Introduced by Representative Jocelyn Sy Limkaichong

AN ACT
REGULATING THE USE OF TREATMENT TECHNOLOGY FOR
MUNICIPAL AND HAZARDOUS WASTES, REPEALING FOR THE
PURPOSE SECTION 20 OF REPUBLIC ACT NO. 8749, ENTITLED
"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. 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 its
implementing rules and regulations: Provided, That these technologies shall be
fitied with equipment thai 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 matorials 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. Waste-to-Energy Facility. - A waste to energy (WTE) facility shall
be considered a solid waste management facility and shall be exempted from the


ban on incineration under Section 20 of Republic Act No. 8749, otherwise known
as the Clean Air Act of 1999: Provided, That the facility shall comply with
Section 19 of the same Act. A WTE facility shall be required to have
arrangements with a sanitary landfill as a disposal site for any waste generated
from its operations.

In addition to the provisions of this Act, the segregation, collection, transfer,
storage, and transport of solid waste as feedstock for a WTE facility, and the
waste treatment process of the WTE facility shall be governed by Republic Act
No. 9003 and Republic Act No. 8749, while the energy production aspect of the
WTE facility shall be governed by Republic Act No. 9136, otherwise known as
the Electric Power Industry Reform Act of 2001, Republic Act No. 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 applicable.

SECTION 4. Role of the Department of Environment and Natural Resources
(DENR). - The DENR shall be primarily responsible for the implementation and
enforcement of this Act. In addition to its powers and functions under Republic
Act No. 9003 and Republic Act No. 8759, the DENR shall:

(a) Issue necessary environmental permits and clearances such as the
Environmental Compliance Certificate as mandated by PD 1586;

Formulate relevant policies, standards and guidelines for the disposal of
municipal and hazardous wastes;

(c) Promote the use of state-of-the-art, environmentally-sound and safe
technologies for the handiing, treatment, thermai or nonthermai destruction,
utilization, and disposal of residual wastes;

Include a WTE strategy in the National Solid Waste Management Status
Report;

(b

@

{e) Based on the program created by the National Solid Waste Commission,
provide technical and other capability building assistance and support to the
LGUs to determine the potential of WTE facilities in their respective
localities;

(£) Recommend policies to eliminate barriers in the uptake and construction of
WTE facilities from a solid waste management perspective;

(g) Exercise visitorial and enforcement powers to ensure strict compliance of
WTE facilities with this Act, Republic Act No. 9003, and Republic Act No.
8759.


SECTION 5. 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 a WTE strategy, 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
respective ten (10)-year solid waste management plans made consistent with the
national solid waste management framework established pursuant to Republic
Act 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). The location of the thermal facility should be consistent with the
Comprehensive Land Use Plan of the LGUs.

Host LGUs are authorized to enter into:

(i) Clustering arrangements with other LGUs for a common WTE facility, on
their own or upon recommendation of the Provincial Solid Waste
Management Board,

(ii) Long term contracts with WTE facilities, on their own or with clustered
LGUs, and

(iii) Joint ventures, public private partnerships, cooperative 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, regulations, and their respective charters for the
establishment of WTE facilities: Provided, That LGUs shall be allowed to
determine the standards and quality of technology and services of a WTE
facility provider.

SECTION 6. Role of National Solid Waste Management Commission. —
Pursuant to the provisions of Republic Act No. 9003, the NSWMC shall ensure
the establishment of a comprehensive solid waste management plan in all LGUs.
This plan shall incorporate waste to energy strategy, waste segregation, recycling
and composting, and disposal. The NSWMC shall approve or deny the plan, or
suppiementai disposai pian of aii 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 environmental 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.

In addition to its powers and functions under Republic Act No. 9003, the National
Solid Waste Management Commission shall:

(a) Include a WTE strategy in the National Solid Waste Management Framework;

(b) Develop and implement a program to assist LGUs in the determination of the
potential of WTE facilities in their respective localities;

(c) Ensure LGUs incorporate a WTE strategy in their respective Local
Government Solid Waste Management Plans;

(d) Coordinate the operation of Provincial, City, and Municipal Solid Waste
Management Boards especially for clustered LGUs employing a common WTE
facility;
(e)Regularly determine, review, and publish the following:
(i) Standards, criteria, and guidelines for:

1. Siting, design, operation, and maintenance of WTE facilities,

2. Characterization and composition of solid waste utilized as feedstock for
WTE facilities to ensure emissions are consistent with Republic Act No.
8739, and

3. Disposal of residual waste from WTE facilities, if any;

(ii) Standards, criteria, guidelines, and formula in computing for a fair, equitable,
and reasonable tipping charge for WTE facilities taking into consideration
the cost of construction, operation, and maintenance of the facility as well as
the potential revenue from the sale of energy output such as electric power
and biofuels, and

(iii) Reference tipping charges for various kinds of WTE facilities;

(f) Adopt regulations to ensure compliance with standards, criteria and
guidelines promulgated pursuant to this Section; and

(g) Perform all other acts that are analogous to the foregoing, which are
necessary and incidental to accomplish the policy objectives of this Act.


SECTION 7. Role of the Department of Energy — In addition to its powers and
functions under Republic Act No. 7638, otherwise known as the Department of
Energy Act of 1992, as amended, the Department of Energy shall:

(a) Accredit and classify WTE facilities based on the energy output, and
determine the standards, criteria, and requirements applicable for each kind of
WTE facility pursuant to Republic Act No. 9136, Republic Act No. 9367, and
Republic Act No. 9513, whichever is applicable;

(b) Include a WTE strategy in the Philippine Energy Plan, taking into
consideration the National Solid Waste Management Framework;

(c) Make available to the public, especially to potential WTE investors, local and
national information on the following:

(i) Current and potential uses of WTE facilities in relation to solid waste
management,

(ii) Inventory of existing WTE facilities,

(ii) General feedstock characterization,

(iv) Status and projection of feedstock generation,

(v) Specific locations of potential feedstock and WTE facilities, (vi)Reference
tipping charges for different kinds of WTE facilities,
(vi) Current tipping charges, and

(vii) Other relevant information.

(d) Promote WTE facilities as a kind of renewable energy power plant pursuant
to Republic Act No. 9513, and as a type of biofuel plant pursuant to Republic
Act No. 9367; and

(©) Perform all other acts that are analogous to the foregoing, which are
necessary and incidental to accomplish the policy objectives of this Act.
SECTION 8. Role of the Provincial Solid Waste Management Board —

In addition to its powers and functions under Republic Act No. 9003, the
Provincial Solid Waste Management Board shall:

(1) Integrate a WTE strategy in the Provincial Solid Waste Management Plan
from the submitted Local Government Solid Waste Management Plans of all
its component cities and municipalities;

(2) Identify and include potential locations for WTE facilities in the Provincial
Solid Waste Management Plan: Provided, That no WTE facility shall be built


outside of the locations identified by the Provincial Solid Waste Management
Board;

3

Identify and recommend potential clustering of cities and municipalities for
a common WTE facility, based on the LGU’s location, composition of
feedstock, projection of feedstock generation, common solid waste
management problems, among others, after reviewing and integrating the
submitted Local Government Solid Waste Management Plans of all its
component cities and municipalities;

4

Provide the necessary logistical and operational support to cities and
municipalities who have the potential to be clustered or have decided to be
clustered for a common WTE facility;

(5) Coordinate the efforts and oversee the implementation of the clustering of
component cities and municipalities for a common WTE facility; and

(6) Coordinate with other Provincial Solid Waste Management Boards in
identifying possible inter-province clustering for a common WTE facility
based on the LGU’s location, composition of feedstock, projection of
feedstock generation, common solid waste management problems, among
others, after reviewing and integrating the Local Government Solid Waste
Management Plans of all its component cities and municipalities

SECTION 9. Role of the City or Municipal Solid Waste Management Board. - In
addition to its powers and functions under Republic Act No. 9003, the City or
Municipal Solid Waste Management Board shall integrate a WTE strategy in the
Local Government Solid Waste Management Plan.

SECTION 10. 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. This
includes but is not limited to the development of a detailed emergency response
plan, provision of appropriate personal protective equipment and medical care,
provision of appropriate pollution control and abatement facilities and
development of a manual of operation and assurance and control. If by contract
the operator is bound to be held primarily 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 or operator 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 in effect ten (10) years following the commencement of
the operation of the facility established after the effectivity of this Act.

SECTION 11. Permits and Licenses. — The procedure for the issuance of
permits and licenses for all kinds of WTE facilities shall be governed by
Republic Act No. 11234, otherwise known as the Energy Virtual One Stop
Shop.

SECTION 12. 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 Vehicles. -
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 condi

(i) They are not manufactured domestically in sufficient quantity, of comparable
quality and reasonable prices;

(ii) They are reasonably needed and will be used exclusively by the registered
enterprise in the manufacture of its products, unless prior approval of the Board
is secured for the part-time utilization of 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; and

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 (DTD.

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 301, otherwise, the
registered enterprise and the vendee, transferee, or assignee shall be solidarily
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 customs duties that
would have been 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, components, 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
nongovernment 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 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 also be entitled to applicable non-fiscal 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 the 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 (LBP). Development Bank of the Philippines
(DBP), Government Service Insurance System (6815), 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, or 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
programs may be entitled to receive grants for the purpose of developing their
technical capacities toward actively participating in the 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.

(f) The incentives for LGUs under Republic Act No. 9003, biofuel plants under
Republic Act No. 9637, and renewable energy power plants under Republic
Act No. 9513 shall continue to apply when it comes to the construction,
operation, and maintenance of WTE facilities constructed after the effectivity
of this Act, whichever is applicable.

SECTION 13. Fines and Penalties. — Violations of the provisions of this Act,
or the standards or rules and regulations promulgated for treatment facilities shall
be fined or penalized under existing laws including but not limited to 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", Republic Act No. 9003; 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” shall likewise apply for this

purpose.



SECTION 14. Implementing Rules and Regulations. - The DENR, in
coordination with the NSWMC, Department of Energy, 301, Bureau of Internal
Revenue, 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 15. Annual Report. — 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.

SECTION 16. 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.

SECTION 17. 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.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,