Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
Section 20 of Republic Act No. 8749, otherwise known as the "Philippine Clean Air Act 
of 1999” prohibits the incineration of municipal, biomedical, and hazardous waste, 
which process emits poisonous and toxic fumes. Consistent with R.A. No. 8749, R.A. 
No. 9003, or "Ecological Solid Waste Management Act of 2000” excludes 
"incineration". However, new technologies have emerged that made it feasible to 
convert waste into usable forms of energy including heat, fuel and electricity. This 
conversion can occur through several 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 
R.A. No. 8749. Thus, this bill seeks to repeal Section 20 of the said law to allow 
regulated thermal and other treatment technologies for the disposal of municipal and 
hazardous wastes, or for the processing of any fuel material. Moreover, 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. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
September 27, 2022
8:00 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
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" 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known 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 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 state-of-the-art, 
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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 
framework 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 
shall 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 held primarily responsible and solely responsible for 
compliance with the standards, the same shall not relieve the owner of the requirement 


 
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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 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 machinery, 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 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 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;  
 


 
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(iii)  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 (DTI).  
 
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-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 
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.  


 
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(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 (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, 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.  
 
(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" shall 
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.  


 
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SECTION 10. Annual Report. – The NSWMC shall submit an annual 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 shall 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,