EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
}
F irs t R e g u la r S essio n  
}
S E N A T E  
S.B. No. 4 9 1
o( ll) 
‘ ' ‘ 1 ‘ l ,'‘
•19 
JUL 15 
A10 -56
Rr.CQV. J  U‘
INTRODUCED BY SENATOR VICENTE C. SOTTO III
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”
EXPLANATORY NOTE
Landfills in Metro Manila are reaching their m axim um  capacity and 
may no longer accom m odate the tons of trash in the coming yeai's. This 
problem  is due to the lack of planning and efficient waste treatm ent m ethod.
One of the effective and sustainable w aste treatm ent technologies th at 
are being adopted by m any countries all over the world is the W aste-to- 
Energy (WTE) incineration m ethod. W aste-to-Energy (WTE) or energy-from- 
w aste is the process of generating energy in the form of electricity a n d /o r 
heat from the incineration of w aste.1 Europe is said to be the largest m arket 
for WTE technologies (47.6%), while Jap an  dom inates 60%  of Asia-Pacific 
WTE m arket for incineration. However, China has been growing their 
capacity since 2011. It is said that biological WTE will grow at an average
1 liUps;//w w\v.r(:iicw ablccncrg\'\vorkl.r()iu/im idcs/2() l l/O l/aii-indciK'Milciil-ciigiiircring-cvaliujIioii-or-WHstc-k)- 
cncrgy-lccl mo logics. I ll ml


rate of 9.7%  as it becom es more commercially feasible.2 The said m ethod 
does not only reduce the m ountains of w aste in landfills but also generate 
energy as well in doing so.
However, no m atter how ideal and beneficial this system  is, the 
Philippines cannot adhere to the WTE system  because of the ban on 
incineration in Section 20 of Republic Act No. 8749. Thus, Section 20 of the 
said law is being repealed to allow regulated therm al and other treatm ent 
technologies for the disposal of m unicipal and hazardous w astes, or for the 
processing of any m aterial for fuel.
Also, this bill im poses specific standards of therm al treatm ent units 
and levies responsibility to the owners and operators of such. Different 
incentives such as fiscal, non-fiscal, grants and financial assistance 
program s shall also be provided to the registered enterprises th at will be 
investing in w aste treatm ent facilities.
In light of the foregoing, the passage of this bill is earnestly sought.
VICENTE C. /SOTTO III
https://www.prescouter.com/2017/10/waste-to-energy-technologies-available/


EIGHTEENTH CONGRESS OF THE 
} 
REPUBLIC OF THE PHILIPPINES 
} 
F irs t R e g u la r S essio n  
}
S E N A T E
S.B. No. 491
' lEXfitr of lit 
.11
i ;
*19 JUL 15 A1C56
R l.C tiVi.J C'
INTRODUCED BY SENATOR VICENTE C. SOTTO III
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 enacted by the Senate and House of Representatives o f the Philippines in 
Congress assem bled:
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SECTION 1. Title. -  This Act shall be known and referred to as the
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“Regulation of W aste Treatm ent Technology Act”.
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SECTION 2. Regulation o f Waste Treatment Technology.- Therm al and other 
treatm ent technologies for the disposal of m unicipal and hazardous w astes, 
or for the processing of any m aterial for fuel, w hether for comm ercial use or 
not, shall be designed and operated to m eet the standards established by 
this Act and its im plem enting rules and regulations: Provided, T hat these 
technologies shall be fitted with equipm ent that will continuously m onitor, 
record and m ake publicly available the reported data on their em issions or 
air pollutant concentrations: Provided, however. That units th at recover 
energy shall be prioritized: Provided further, That therm al treatm ent units


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shall treat w astes at a tem perature of not less than eight hundred fifty
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degrees centigrade (850°C).
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SECTION 3. Role of the Departm ent of Environment and Natural Resources 
(DENR). -  The DENR shall be primarily responsible for the im plem entation 
and enforcem ent of this Act. It shall likewise promote the use of state-of-the- 
art, environm entally sound and safe technologies for the handling, 
treatm ent, therm al or non-therm al destruction, utilization, and disposal of 
residual w astes.
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SECTION 4. Role of Local Government Units (LGUs) in Setting Up Treatment
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Facilities. -  The LGUs are hereby m andated to promote, encourage and
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im plem ent in their respective jurisdiction a com prehensive solid waste
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m anagem ent 
plan 
that 
includes 
waste 
segregation, 
recycling 
and
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composting.
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The establishm ent of treatm ent facilities shall be facilitated by LGUs
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within a region, province, or strategically clustered LGUs in consonance
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with their respective ten (10) yeai' solid waste m anagem ent plans m ade
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consistent with the national solid waste m anagem ent framework established
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p u rsu an t to Republic Act No. 9003, othem ise known as the “Ecological
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Solid W aste M anagem ent Act of 2000”. The solid waste m anagem ent plans
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of all the LGUs shall be subjected to the approval of the National Solid
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W aste M anagem ent Commission (NSWMC).
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SECTION 5. Role of the National Solid Waste M anagem ent Commission. -
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P ursuant to the provisions of Republic Act No. 9003, the NSWMC shall
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ensure the establishm ent of a com prehensive solid w aste m anagem ent plan
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in all LGUs, which plan shall incorporate w aste segregation, recycling and
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com posting, and disposal. The NSWMC shall approve or deny the plan, or
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supplem ental disposal plan of all LGUs, which may c an y  out treatm ent
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projects, within ten (10) working days from its subm ission. The D epartm ent
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of Science and Technology (DOST) shall likewise process the application of


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said projects for the necessaiy technology verification within the sam e
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period. However, for new technology, the DOST shall have twenty (20)
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working days from the receipt of the application of said projects to process
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the verification. In all cases, the approving body shall put in writing the
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reasons for either approving or denying the plan.
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SECTION 6. Responsibility of Owner and Operator. -  Responsibility for
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com pliance with the standards prom ulgated for the establishm ent and
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operation of w aste treatm ent facilities shall rest with the owner a n d /o r
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operator thereof. If by contract the operator is bound to be held prim arily
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and solely responsible for compliance with the standards, the sam e shall not
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relieve the owner of the requirem ent to exercise due diligence to assure that
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the required com pliance by operators are met. In the event th at the
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ow nership of the facility is transferred to another person, the previous owner
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shall notify the new owner of the standards and the conditions set for the
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operation of said facility, and the laws and regulations that the new owner
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or operator has to comply with. The standards for operation of w aste
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treatm ent facility may be m ade more stringent by five percent (5%):
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Provided, T hat the sam e shall be effected ten (10) years following the
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com m encem ent of the operation of the facility established after the effectivity
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of this Act.
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SECTION 7. Incentives. -  (a) Fiscal Incentives.- The following tax incentives 
shall be granted to registered enterprises which shall invest in waste 
treatm ent facilities:
(1) Income Tax Holiday.- Within the first seven (7) years of its 
operations, the treatm ent facility shall be exem pt from income tax 
levied by the national government.
(2) Tax and Duty Exemption on Imported Capital Equipm ent and 
Vehicles.- W ithin the first ten (10) yeai's of operations, registered 
enterprises which invested in the treatm ent facility shall enjoy tax


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and duty free im portation of m achinery, equipm ent, vehicles and 
spare parts used for setting up the treatm ent facility: Provided, 
That the im portation of such m achineries, equipm ent, garbage 
collection vehicles, and spare parts shall comply with the following 
conditions:
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(i) 
They are not m anufactured domestically in sufficient 
quantity, of com parable quality and reasonable prices;
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(ii) 
They are reasonably needed and will be used exclusively 
by the registered enterprise in the m anufacture of its 
products, unless prior approval of the Board is secured 
for the par-tim e utilization of said equipm ent in a  non- 
registered activity to maximize usage thereof or the 
proportionate taxes and duties are paid on the specific 
equipm ent and m achinery being perm anently used for 
non-registered activities; and
(iii) 
The im portation of such m achinery, equipm ent, vehicle 
and spare parts has been approved by the Board of 
Investm ents (BOl) of the D epartm ent of Trade and 
Industry (DTI).
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Provided, further. That the sale, transfer or disposition of 
such m achinery, equipm ent, vehicle and spare parts 
within five (5) years from the date of acquisition shall be 
prohibited, w ithout prior approval of the BOI, othem ise 
the registered enterprise and the 
vendee, transferee, or 
assignee shall be solitarily liable to pay twice the am ount 
of tax and duty exemption given it.
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(3) Tax Credit on Domestic Equipm ent. -  a tax credit equivalent to 
one hundred percent (100%) of the am ount of the value added tax 
and custom s duties that would have been paid on the m achinery,


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equipm ent, com ponents, parts and m aterial has these item s been 
im ported shall be given to a contract holder who purchases 
m achinery, 
equipm ent, 
com ponents, 
parts 
and 
m aterials: 
Provided, That such are directly needed and shall be used 
exclusively by the waste treatm ent facility.
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(4) Tax and Duty Exemption of Donations, Legacies and Gifts.- All 
legacies, gifts and donations to LGUs, enterprises or private 
entities, including nongovernm ent organizations (NGOs) for the 
support and m aintenance of the program  for setting up of 
treatm ent technologies shall be exempt from all internal revenue 
taxes and custom s duties, and shall be deductible in full from the 
gross income of the donor for income tax purposes.
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(b) Non-Fiscal Incentives.- LGUs, enterprises or private entities availing of
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tax incentives under this Act shall also be entitled to applicable non-fiscal
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incentives provided for under the O m nibus Investm ent Code.
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The NSWMC shall provide incentives to businesses and industries 
th at are engaged in the treatm ent of w astes which are registered with the 
NSWMC and have been issued the required Environm ental Compliance 
Certificate (ECC) in accordance with the guidelines established by the 
NSWMC. Such incentives shall include simplified procedures for the 
im portation of equipm ent, spare parts, new m aterials, and supplies, and for 
the export of processed products.
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c) Financial A ssistance Program -  Government financial institutions such as 
the L andbank of the Philippines (LBP), Development Bank of the Philippines 
(DBP), Governm ent Seiwice Insurance System (GSIS), and such other 
governm ent 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


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treatm ent facilities: Provided, That these institutions shall cillocate five
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percent (5%) of their loan portfolio to waste treatm ent projects.
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d) Extension o f Grants to LGUs -  Provinces, cities and m unicipalities whose
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treatm ent facilities plans have been duly approved by the NSWMC or who
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have been com m ended by the NSWMC for adopting innovative w aste
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treatm ent program s may be entitled to receive grants for the purpose of
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developing their technical capacities toward actively participating in the
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w aste treatm ent program.
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e) Incentives to Host LGUS - Local governm ent units who host common
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treatm ent facilities shall be entitled to incentives as may be determ ined by
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the NSWMC.
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Section. 8. Fines and Penalties. -  Violations of the provisions of this Act, or
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the stan d ard s or rules and regulations prom ulgated 
for treatm ent facilities
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shall be fined or penalized under the provisions of P.D. 1586, R.A. 6969,
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otherwise known as the Toxic Substances and H azardous and Nuclear
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W aste Control Act of 1990, R.A. No. 8749, otherwise known as the
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Philippine Clean Air Act of 1999, R.A. No. 9003, and R.A. 9275, othei-wise
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known as the Philippine Clean W ater Act of 2004. For w aste-to-energy
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facilities, the penal schem es established under the Philippine Grid Code and
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Philippine D istribution Code p u rsu an t to R.A. No. 9136, also known as the
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Electric Power Industry Reform Act of 2001 shall likewise apply for this
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purpose.
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Section. 9. Implementing Rules and Regulations -  The DENR, in coordination
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with the NSWMC, D epartm ent of Energy, BOl, Bureau of Internal Revenue,
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the B ureau of C ustom s, academ e or research institutions, and other
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concerned 
agencies, 
shall 
prom ulgate 
the 
im plem enting 
rules 
and
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regulations for this Act, within three (3) m onths after its enactm ent.


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Section. 10. Report to Congress -  The NSWMC shall subm it an annual report 
to the President of the Philippines and to Congress on the sta tu s of the 
disposal m anagem ent and the use of treatm ent facilities in the country not 
later th an  M arch 30 of every year following the approval of this Act.
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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.
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Section. 12. Repealing Clause. — Section 20 of R.A No. 8749 is hereby 
repealed. Provisions of R.A No. 9003, and other laws, presidential decrees, 
executive orders, rules and regulations inconsistent with any provisions of 
this Act shall be deem ed repealed or modified accordingly.
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Section. 13. Effectiuity. -  This Act shall take effect fifteen (15) days after
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publication in the Official Gazette or in a new spaper of general circulation.
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Approved.