REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES           i' * 5
QUEzON aTy
EIGHTEEP\ITII CONGRESS
First Regular Session
HousEBILL`No:   5222
Introduced by
REPRESENTATIVE ATTY. GERVILLE ``TINKY BITRICS" R. LUISTRO
EXPLANATORY NOTE
One  of  the  major  problems  of  the  country  is  garbage.     According  to  the
Department   of   Environment  and   Natural   Resources   (DENR),   the   Philippines   is
producing over 21 million metric tons (MT) of garbage per year, or an average per capita
generation of 0.4 kilos per dayl.  This is despite the enactment of Republic Act No. 9003
or the Ecological Solid  Waste  Management Act of 2000  which mandates  the  State  to
adopt  a  comprehensive  solid  waste  management program  that  will  waLrrant  proper
segregation, collection, transport, storage, treatment, and disposal of waste. This allows
the  government  to  formulate  and  adopt  an  effective  ecological  waste  management
approach.
On the other hand, Republic Act No. 8749 or the Philippine Clean Air Act of 1999,
prohibits  incineration  of  municipal,  biomedical  and  hazardous  wastes.  This  prcx=ess
emits  poisonous  and  toxic  fumes.     With  the  prohibition  of  incineration,  modem
measures  relating  to  waste  management  that  undergo  burning  process  carmot  be
adopted even if the measures developed a level wherein emitted fumes are no longer
harmful  to  humans.  Hence,  this  may  be  a  sound  option  for  the  government  to
undertake.
Waste-to-energy (WTE), or energy produced by incinerating waste to create heat,
is a technology that began its breakthrough in the late 1970s.  It is a process of generating
energy in the form of electric heat from the incineration of waste. Compared to the first
commercial-grade, utility-grade WTE plant commissioned in Saugus, Massachusetts in
19752, the upgraded WTE plant technology has come a long way in terms of minirfuzing
its emissions while producing sustainable energy fueled by solid waste.
1 DENR News Alert 2021
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is concerned.  Consequently,  we  will be  able  to  address  the country's  electric power
concerns, primarily because of our dependence to non-renewable energy sources.
This bill seeks to amend certain provisions of R.A. No. 9003 and R.A. No. 8749 to
allow the consideration and implementation of vital and modem approach in resolving
the persistent garbage problem of the State. In the process, this approach is expected to
attract more investors through the provision of fiscal and non-fiscal incentives.   Thus,
converting our waste to energy may be a good, if not the best, solution to solve both.
This proposed bill was likewise filed on the 18th Congress, underwent thorough
deliberations, and was subsequently passed on the Third Reading. It is noteworthy to
recognize the efforts poured by its primary sporrsors, nalnely, Representatives Carlito S.
Marquez,  Carlos  0.  Cojuangco,  Enrico  A  Pineda,  Michael Odylon  L.  Romero,  PhD,
Manuel DG. Caborhan, Abraham ``Bambol" N. Tolentino, Alfred Vargas, David ``Jay-Jay"
C. Suarez, Anna Marie Villaraza-Suarez, Aleta C. Suarez, Jcx=elyn Sy Limkaichong, Eric L
Olivarez, and Rodrigo A. Abellanosa.


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENIATTVES
QUEZON CITY
EIGHTEENTII CONGRESS
First Regular Session
HOUSE BILL NO.
5222
Introduced by
REPRESENTATIVE AITY. GERVILLE ``|INKY BITRICS" R. LUISTRO
AN ACT REGULATING THE USE OF TREATMENT TECHNOLOGY FOR
MUNICIPAL AND HAZARDOUS WASTES, REPEALING FOR THE PURPOSE
SECTION 20 0F REPUBLIC ACT NO. 8749, OTHERWISE KNOWN AS
"THE PHILIPPINE CLEAN AIR ACT OF 1999"
B~e__i^f..:_I::.ted  by  the  Senate  and  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  estabhihed  in  this  Act  and  its
implementing rules and regulation: Prot;I.dcd, That these technologies shall be fitted
with equipment that will continuously monitor, record and make publicly available
thereporteddataontheiremissiousorairpollutantconcentratious:Prot7!.did,feorocz7cr,
That units  that recover  energy  shall be  prioritized:  P7`ovi.dcd, ¢rfhe*  That  entities
utilizing  units  shall  incorporate  in  their  facilities  or  operations  proper  materials
recovery program: Proz)I.czed, f.rzczJly, 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,
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 fachities 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 sham 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 sham 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.Inallcases,theapprovingbodyshallputinwhtingthereasousforeither
approving or denying the plan.
SECTION 6.  Responsibility of Owner and Operator.  Responsibility for compliance
with  the  standards  promulgated  for  the  estabhishment  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  to  exercise  due  dihigence  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%):   Prouz.decz, That the same
shall be effected ten (10) years fonowing the commencement of the operation of the
facihty 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 facihties:
1)  I#coore Tax HoZ!.drgr.   Within the first seven (7) years of its operations,
the treatment fachity sham be exempt from income taxes levied by the
national goverrment.


2:)TqT_andputyExemptiononlmportedcapitalEquipnentandvchicles.
Withinthefirstten(10)yearsofoperatious,registeredenterpriseswhich
invested  in  the  treatment  facihity  shall  enjoy  tax   and   duty  free
importation of machinery, equipment, vehicles and spare parts used for
setting up the treatment facility:  Proz;z.did, That the importation of such
machineries,  equipment,  garbage conection vehicles,  and spare parts
shall comply with the fouowing conditions:
(i)        They are not manufactures domestically in sufficient quantity, of
comparable quality and reasonable prices;
(ii)       They are reasonably needed and win be used exclusively by the
registered enterprise in the manufacture of its products, unless
prior  approval   of  the   Board   of  Investments   q30I)   of  the
Department of Trade and Industry (DTI) is secured for the part-
timeutilizationofthesaidequipmentinanon-registeredactivity
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;
(iii)      The  importation  of  such  machinery,  equipment,  vehicle  and
sparepartshasbeenapprovedbytheBoardoflnvestments(801)
of the Department of Trade and Industry (DTI).
Provz.did,¢rfker,Thatthesale,trausferordispositionofsuchmachinery,
equipment, vehicle and spare parts within five (5) years from the date of
acquisition  shah  be  prohibited,  without  prior  approval  of  the  801,
otherwise,  the  registered  enterprise  and  the  vendee,  trausferee,  or
assignee shall be solidarily liable to pay twice the amount of tax and
duty exemption given it.
3)  Tax Fre4it on Domestic Equipment.    A taLx credit equivalent to one
hundred  percent  (100°/o)  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:  Provt.did, That such are directly needed
and shall be used exclusively by the waste treatment facility.
4)  Tap and pap Exemption Of Donations, Legacies and Gifts.  AIllegacies,
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


shallbedeductibleinfullfromthegrossincomeofthedonorforincome
tax purposes.
ap)    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 sham 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.
(c)    Financial Assistance program  Government financial iustitutious such as the
Land Bank of the Philippines (LBP), Development Bank of the Philippines
(DBP),   Government  Service  Insurance  System   (GSIS),   and  such  other
governmentinstitutiousprovidingfinancialservicesshall,inaccordancewith
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
treatmentfacirities:P7`o".did,Thattheseiustitutiousshanallocatefivepercent
(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 program.
(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 facihities shall be fined
andpenalizedundertheprovisiousofPresidentialDecreeNo.1586;RepublicActNo.
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), 801, Bureau of Intemal Revenue
(BIR),  Bureau  of  Customs   q}oC),  academe  or  research  iustitutious,  and  other
concernedagencies,shallpromulgatetheimplementingrulesandregulationsforthis
Act, within three (3) months after its enactment.
SECTION 10.   Annual Report.   The NSWMC shall submit an armual report to the
President of the Phhippines and to Congress on the status of disposal management
andtheuseoftreatmentfacilitiesinthecountrynotlaterthanMarch30ofeveryyear
following the approval of this Act.
SECTION 11.   Separability Clause.   If any part or section of this Act is declared
uncoustitutional, 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  sham  take  effect  fifteen  (15)  days  after  its
publicationintheOfficialGazetteorinanewspaperofgeneralcirculation.
Approved,