Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

House BILL No, 3423

|TRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

AN ACT ESTABLISHING A NATIONAL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR FACILITIES UTILIZING WATE-TO-ENERGY
TECHNOLOGIES
Waste-to-energy (WTE)is the process of generating energy in the form
of electricity or heat from the primary treatment of waste, or the processing of waste into a
fuel source. WTE is a form of energy recovery and most WTE processes generate electricity

or heat directly through combustion or produce a combustible fuel commodity.

Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008 (RE Act),
Mandates the Department of Energy (DOE) to encourage the adoption of waste-to-Energy
(WTE) facilities and considers biodegradable organic fractions of industrial and municipal
wastes as part of biomass resources. However, more than a decade after the enactment of
the RE Act, WTE facilities are almost negligible in the energy mix with only 13.83 MW of
installed capacity and a mere 26.48 MW of committed or indicative capacity, discussions
with WTE proponents identify the continuous source of feedstock, in the form of waste, as

the main barrier to entry.

This bill seeks to provide a framework for the entire value chain of WTE facilities, and in turn
ensure the uninterrupted supply of waste by (1) mandating a WTE strategy in the national,
provincial, and local solid waste management plans; (2) authorizing local government units

(LGUs) to enter into cooperative undertakings, joint ventures , and other similar modalities


in choosing a common WTE facility provider; and (3) requiring 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 and the potential revenue from the sale of energy output such as electric power

and biofuels.

‘Thus, the approval of this bill is earnestly sought.

(ALFRED VARGAS:


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL'No. 3423

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
ESTABLISHING A NATIONAL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR FACILITIES UTILIZING WATE-TO-ENERGY
TECHNOLOGIES

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 referred to as the “Waste-to-Energy Act”.

Sec. 2. Declaration of Policy. It is hereby declared the policy of the State to:

(a) Ensure protection of the public's health through ecological solid waste
Management’

(b) Encourage the development and utilization of new and alternative technologies in
resource recovery, resource conservation, and processing, treatment, and
disposal of solid waste;

(©) Support the expansion of bioenergy technologies, such as waste-to-energy, in
order to attain sustainable energy;

(d) Strengthen the integration of solid waste management, bioenergy promotion, and
environmental protection towards healthful cities amidst economic growth and
development; and

(e) Promote collaboration and cooperation among local government units through
coordinated approaches to solid waste management.

Sec. 3. Scope and Application. - This Act shall apply to all local government units
and waste-to-energy facilities.

Sec. 4. Definition of Terms. - For purposes of this Act, the following terms shall be
defined as stated below:
(a) Agricultural waste refers to waste generated from planting or harvesting of crops,
trimming or pruning of plants, and wastes or run-off materials from farms of fields;


(b) Biomedical waste refers to pathological wastes, pharmaceutical wastes, chemical
wastes, and sharps as defined in this Act;

(©) City or Municipal Solid waste Management Boards refers to the entity established by
each city or municipality pursuant to Section 12 of Republic Act No. 9003, otherwise
known as the Ecological Solid Waste Management Act of 2000;

(d) Chemical waste refers to discarded solid, liquid or gaseous chemicals from
laboratories or other sources such as diagnostic work, environmental work, cleaning,
housekeeping and disinfecting procedures;

(e) Collection refers to the act of removing solid waste from the source or from a
communal storage point;

(f) Disposal site refers to a site where solid waste is finally discharge and deposited;
Placing of any solid waste into or in a land;

(g) Disposal site refers to a site where solid waste is finally discharged and deposited;

(h) Feedstock refers to a waste source utilized as fuel for a waste-to-energy facility;

(i) Generation refers to a person, natural or juridical, who last uses a material and makes
it available or recycling;

(i) Generator refers to a person, natural or juridical, who last uses a material and makes
itavailable for disposal or recycling. For purposes of this Act, a generator refers to the
local government unit (LGU);

(k) Hazardous waste refers to a combination of solid waste which, because of its quantity,
concentration physical, chemical, and infectious characteristics may:

(i) Cause or significantly contribute to an increase in mortality or an increase in
a serious irreversible or incapacitating reversible illness, or

(ii) pose a substantial present or potential hazard to human health or the
environment when improperly treated, stored, transported, or disposed of, or
otherwise managed;

()) Incineration refers to the burning of municipal, biomedical, and hazardous wastes
which process emits toxic and poisonous fumes;

(m) Local Government Solid Waste Management Plant refers to the ten (10) year
Solid waste management plan, consistent with the National Solid Waste Management
Framework, prepared by the province, city or municipality pursuant to Section 16 of
Republic Act No. 9003.

(n) Municipal waste refers to wastes produced from activities within LGUs which include
acombination of domestic, commercial, institutional, and industrial wastes and street
litters;

(0) National Solid Waste Management Commission refers to the Commission Created and
primarily tasked with overseeing the implementation of solid waste management
plans and prescribing policies to achieve the objective of Republic Act No. 9003;

(p) National Solid Waste Management Framework refers to a document prepared by the
National Solid Waste Management Commission based on the National Solid Waste
Management Status Report pursuant to Section 15 of Republic Act No, 9003;


(q) National Solid Waste Management Status Report refers to a document prepared by
the Department of Environment and Natural Resources (DENR), which is used as a
basis in formulating the National Solid Waste Management Framework pursuant to
Section 14 of Republic Act No. 900:

(r) Pathological waste refers to all human tissue, whether infected or not, animal
carcasses and tissue, together with all related swabs and dressings;

(s) Pharmaceutical waste refers to pharmaceutical products, drugs and chemicals that
been returned from wards, have been spilled or soiled, are expired or contaminated,
or are to be discarded for any reason;

(t) Provincial Solid Waste Management Board refers to the entity established by each
province pursuant to Section 11 of Republic Act No. 9003;

(u) Resource recovery refers to the collection, extraction, or recovery of recyclable
materials from the waste stream for the purpose of recycling, generating energy, or
producing a product a suitable for beneficial use;

(v) Sanitary landfill refers to a waste disposal site designed, constructed, operated and
maintained in a manner that exerts engineering control over significant potential
environment impacts arising from the development and operation of the facility;

(w) Segregation refers to a solid waste management practice of separating
different materials found in solid waste in order to promote recycling and re-use of
resources and to reduce the volume of waste for collection and disposal;

(x) Solid waste refers to all discarded household, commercial waste, non-hazardous
institutional and industrial waste, street sweepings, construction debris, agricultural
waste, and other non-hazardous or non-toxic solid waste. It shall not include:

@ Waste identified or listed as hazardous waste of a solid, liquid, contained
gaseous or semisolid form, which may cause or contribute to an increase in
mortality or in serious or incapacitating reversible illness, or acute or chronic
effect on the health of persons and other organisms

(ii) _ Infectious waste from hospitals such as equipment, instruments, utensils, and
fomites of a disposable nature from patients who are suspected to have or
have been diagnosed as having communicable diseases and must therefore be
isolated as required by public health agencies, laboratory wastes a
pathological specimens, and disposable fomites that may harbour or transmit
pathogenic organisms, and surgical operating room pathologic materials from
outpatient areas and emergency rooms, and

(iii) Waste resulting from mining activities, including contaminated soil and
debris;

(y) Solid waste management facility refers to any resource recovery system or
component thereof; any system, program or facility for resource conservation; any
facility for the collection, source separation, storage, transportation, transfer,
processing, treatment, or disposal of solid wast

(2) Solid waste management refers to the discipline associated with the control of
generation, storage, collection, transfer and transport, processing, and disposal of



solid wastes in a manner that is in accord with the best principal of public health,
economics, engineering conservation, aesthetics, and other environmental
considerations, and that is also responsive to the public attitudes;

(aa) Sharps refer to needles, syringes, scalpels, blades, and any other items that
could cut or puncture

(bb) Tipping charge refers to the amount paid by a generator to a waste-to-energy
facility for the disposal of waste;

(cc) Toxic and poisonous fumes refer to emissions and fume which do not conform
to internationally accepted standards, including World Health Organization
guidelines values;

(da) Waste-to-energy(WTE) technology refers to any waste treatment process that
creates electricity, heat, or transport fuels form a waste source which server as the
feedstock;

(ee) WTE facility refers to any processing facility that utilizes WTE technology
Such as a power plant, a biofuel plant, and biogas-producing sanitary landfill; and
(ff) WTE strategy refers to a plan of action with measurable targets towards the
sustainability of feedstock for and increased utilization of WTE facilities. The strategy
is as a tool both for solid waste management and increased utilization of bioenergy

technologies.

Sec. 5. Waste-to-Energy Facility, - A 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.

Sec. 6. The National Solid Waste management Commission. - The Secretary of the
department of Energy shall sever in ex officio capacity as member of the national solid waste
management commission, which shall now have fifteen (15 member) from the government
sector. | 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 Plants;

(@) Coordinate the operation of provincial, city and municipal Solid Waste

Management Boards especially for clustered LGUS employing a common WTE

Facility;

(c)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:

(ji) 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

(0 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.

Sec. 7. Role of the Department of Energy. - 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 outpit, and
Determine the standards, criteria and reuirements 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 Philippines Energy Plan, taking into
Consideration the National Solid Waste Management Framework;
(©) Make available to the public, especially to potential WTE investors, local and
national information on the following:
( Current and potential uses of WTE facilities in relation to solid waste
management
(ii) Inventory of existing WTE facilities,
(iii) General feedstock characterization,
(iv) Status and projection of feedstock generation,
(v) Specific location of potential feedstock and WTE facilities
(vi) Reference tipping charges for different kinds of WTE facilities,
(vii) Current tipping charges, and


(viii) other relevant information.
(d) Promote WTE facilities as a king of renewable energy power plant pursuant to
Republic Act No. 9513, and asa type of biofuel plant pursuant to Republic act
No. 9367
(e) Perform all other acts that are analogous to the foregoing which are
Necessary and incidental to accomplish the policy objectives of this Acts.

Sec. 8. Role of the Department of Environment and Natural Resources, - In
Addition to its powers and functions under Republic Act no 9003 and Republic Act
No. 8759, the DENR shall:
(a) Include a WTE strategy in the National Solid Waste Management Status
Report;
(b) Based on the program created by the National Solid Waste Commission
Pursuant to Section 6(b) of this act. provide technical and other capability
Building assistance and support to the LGUs to determine the potential
WTE facilities in their respective localities
(c) Recommend policies to eliminate barriers in the uptake and construction of
WTE facilities from a solid waste management perspective;
(@) Ensure compliance with Sections 6€ and (f); and
(e)Exercise visitorial and enforcement powers to ensure strict compliance of WTE
Facilities with this Act, Republic Act No. 9003. And Republic Act No, 8759

Sec. 9. Role of Local Government Units. - In addition to their powers and
Functions under Republic Act No. 7160, otherwise known as the local government
Code of 1991, and Republic act no 9003. All LGUs shall;
(a) Include a WTE strategy in their respective Local Government Solid Waste
Management Plans; and
(b) Be 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 contacts with WTE facilities on their own or with clustered LGUs
and

(ili) 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.

Sec. 10. 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

(2) Identify and include potential locations for WTE facilities in the Provincial Solid
Waste Management Plan: Provided, That no WTE facility shall be build 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 LGUs location, composition of feedstock Projection of
feedstock generation, common solid waste management problem, among others, after
reviewing and integrating the submitted Local Government Solid Waste Management Plans
ofall its component cities and Municipalities;

(4) Provide the necessary logistical 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 effort 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 LGUs 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

Sec. 11. 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 shalll integrate a WTE strategy in the Local Government Solid
Waste Management Plant.

Sec. 12. 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 Once Stop Shop.

Sec. 13. Prohibited Acts. - The following acts are prohibited:

(a) For LGUs:
(i) Failure to include and implement the WTE strategy in their respective Local
Government Solid Waste Management Plans, and
(ii) Failure to enforce proper segregation of waste resulting to a change in the
composition of the feedstock, which causes the emissions of toxic and hazardous
fumes;

(b) For government agencies, failure to perform the powers and functions indicated

under Sections 6, 7, and 8 of this Act; and


(c) For the owner and operator of the WTE facility:
(i) failure to ensure correct composition of feedstock resulting to the emission of
toxic and hazardous fumes, and
(ii) Failure to comply with the standards, criteria, guidelines, and formula, when
applicable, pursuant to Section 6(e) of this Act;

(d) Use of imported solid waste as feedstock for a WTE Facility.

Sec. 14. Penalties - Without prejudice to civil and criminal liability, the following
persons found to have violated the Sections mentioned below shall be meted with
the following penalties:

(a) Officials of LGUs and government agencies who violate Section 13(a):

(i) First offense: six (6) months suspension,
(ii) Second offense: Dismissal from service, perpetual disqualification from
holding public office, and forfeiture of retirement benefits.

(b) Officials of LGUs and government agencies who violate Section 13(b) shall
be suffer dismissal from service, perpetual disqualification from holding public office,
forfeiture of retirement benefits, and imprisonment for one (1) to six (6) years with a fine
of not less than Five hundred thousand pesos (P500,000,00) but not more than Two million
pesos (P2,000,000,00).

(c) Any person who violates Section 13(c)(i) shall pay a fine of One million pesos
(P1,000,000,00) and an amount not less than ten percent (10%) but no more than fifteen
percent (15%) of the net annual income during the previous year, and shall suffer
imprisonment of a minimum period of one (1)

Year but not to exceed three (3) years at the discretion of the court and permanent
revocation of the license of the WTE facility.

(d) Any person who violates Section 13(c)(ii):

(i) First offense: Fine of One million pesos (P1,000,000,00) and an amount not
less than ten percent (10%) but not more than fifteen percent (15%) of the net
annual income during the previous year,

(ii) Second offense: The same penalties as with the first offense including an
additional penalty of imprisonment of minimum period of one (1) year but not
to exceed three (3) years at the discretion of the court,

(iii)Third offense: The same penalties as with the second offense and
permanent revocation of the license of the WTE facility.

(e) Any person who violates Section 13(d) shall pay a fine of One million pesos
(P1,000,000,00) and an amount not less than ten percent (10%) but not more
than fifteen percent (15%) of the net annual income during the previous year, and
shall suffer imprisonment of a minimum period of one (1) year but not to exceed
three (3) years at the discretion of the court and permanent revocation of the
license of the WTE facility. The same person shall repatriate the imported solid
waste to its country of origin.

For Section 13 (c) and 13 (d), if the violation is committed by a corporation,


Partnership, or other juridical entity duly recognized in accordance with the law, the
Chief executive officer, president, general manager, managing partner, or such other
Officer-in-charge shall be liable for the commission of the offense penalized under
This Act.

Sec. 15. Incentives. - The incentive 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 come to the construction, operation and
maintenance of WTE facilities constructed after the effectivity of this Act, whichever is
applicable.

Sec. 16. Congressional Oversight. - The Joint Congressional Oversight Committee,
created under Republic Act No. 9003, shall exercise oversight power over the solid waste
management aspect of the implementation of this Act. The joint Congressional Energy
Commission, Created under Republic Act No, 9136 and renamed under Republic Act No.
11285, shall exercise oversight powers over the energy aspect of the implementation of this
Act.

Sec. 17. Implementing Rules and Regulations. - The DOE together with the DENR,
in consultation with the appropriate government agencies mentioned herein and energy
industry stakeholders, shall issue the implementing rules and regulations of this Act within
sixty (60) days upon its effectivity.

Sec. 18. Amendatory Clause. - Section 20 of Republic Act No. 8749, otherwise
known as the Clean Air Act of 1999, and Sections 3(dd), 4, 5, 8, 9, 10, 11, 12, 14, 15, 16, and
17 of Republic Act No, 9003, otherwise known as the Ecological Solid Waste Management
Act of 2000, are hereby amended.

Sec. 19. Separability Clause. - Ifany portion or provision of this Actis declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall
remain in force and effect.

Sec. 20. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, rule or regulation inconsistent with the provisions of the Act is
hereby repealed or modified accordingly.

Sec. 21. Effectivity Clause. - This Act shall take effect fifteen (15) days following its

complete publication in the official Gazette or a newspaper of general
circulation.

Approved,