regulatory environment and investing for environmental

Regulatory Environment and Investing for Environmental Service Activities in the Philippines

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February 24-25, 2021

EMB implements the following environmental laws nationwide:

• RA 8749 (Clean Air Act of 1999)

• RA 9275 (Philippine Clean Water Act of 2004)

• RA 9003 (Ecological Solid Waste Management Act of 2000)

• PD 1586 (Environmental Impact Statement System)

• RA 6969 (Toxic Substances and Hazardous and NuclearWaste Control Act of 1990)

• RA 9512 (Environmental Awareness and Education Act of2008)

E.O. 192

Provide research and laboratory services. Serve as Secretariat in the adjudication ofpollution cases.

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PHILIPPINE CLEAN AIR ACT OF 1999(RA 8749)

• An act providing comprehensive air pollution management andcontrol program

• Primary goal is to achieve and maintain air quality that meets theNational Air Quality Guidelines for Criteria Pollutants throughout thePhilippines

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Air Quality Management

• DAO 2004 – 26 “Amending Rule XIX of DAO 2000 –81” – Permit to Operate

• MC 2007 – 003 “Policy on Compliance and Permitting for Industrial Facilities Relating to Air Quality”

• MC 2020 - 17 "Guidelines on the Issuance of Permit to Operate (PTO) for Air Pollution Source Installation or Equipment (APSI / APSE) through the Online Permitting and Monitoring System“

• DAO 2007 – 22 “Guidelines on Requirements for CEMS and Other Acceptable Protocols, thereby Modifying and Clarifying certain Provisions of Section 5, Rule X of DAO 2000 – 81 and other Related Provisions”

• MC 2008 – 05 “Guidelines on Air Pollution Control Techniques and Devices”


• MC 2009 – 004 “Amendment of Annex 2 of Memorandum Circular 2007 – 003 Re: Policy on Compliance and Permitting for Industrial Facilities Relating to Air Quality”

• DAO 2017 – 14 “Online Transmission of Data from CEMS and CCTV of Major Industries”

• MC 2019 – 21 “Guidelines Governing Waste-to-Energy (WtE) Facilities for the Integrated Management of Municipal Solid Wastes”

• DAO 2004-53 “Guidelines to Implement the Tax Incentives Provision Under Section 13 of Republic Act. No. 8749 otherwise Known as the Philippine Clean Air Act of 1999”

RELEVANT POLICY ISSUANCES FOR STATIONARY SOURCES

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RELEVANT POLICY ISSUANCES FOR MOBILE SOURCES

• DAO 2000-81 – “ Requirement to secure Certificate of Conformity” for new vehicles entering the country.

• DAO 2015 – 04 “Implementation of Vehicle Emission Limits for Euro 4/IV and In-Use Vehicle Emission Standards”

• DAO 2016 – 23 “Adoption of Euro 4/IV Emission Limits / Standards”

• DOF BIR Revenue Regulations No. 24-2018 - “Further Amending Section 9 of RevenueRegulations No. 25-2003 Relative to the Determination by the Department of EnergyWhether the Automobiles Subject to Excise Tax Exemption are Hybrid or Purely ElectricVehicles pursuant to the Provisions of Republic Act No. 10963, Otherwise known as the "TaxReform for Acceleration and Inclusion (TRAIN) Law”

Air Quality Management


PHILIPPINE CLEAN WATER ACT OF 2004(RA 9275)

• An Act providing for a comprehensive strategy to address thedegradation of our waterbodies.

• Mandates the Department to formulate and implement more stringentpolicies and strengthen partnerships with stakeholders to improvewater quality in all parts of the country.

• Encourages pollution prevention and waste minimization at source andprovides for the use of economic incentives and public disclosure toensure compliance.


The Philippine Clean Water Act (RA 9275)AN ACT PROVIDING FOR A COMPREHENSIVE WATER QUALITY

MANAGEMENT AND FOR OTHER PURPOSES

Water Quality Management


• SECTION 2. Declaration of Policy• SECTION 5. Designation of Water Quality Management Areas• SECTION 7. National Sewerage and Septage Management Program

(NSSMPP)• SECTION 14. Discharge Permits

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Calao-Delinquente-Diadi River System WQMA (DAO 2015-13) (Region 2)

DESIGNATION OF WATER QUALITY MANAGEMENT AREAS Section 5 of RA 9275 (Philippine Clean Water Act)

Marilao-Meycauayan-Obando

River System WQMA

(DAO 2008-07) (Region 3)

Silway River WQMA

(DAO 2010-10) (Region 12)

Tigum-Aganan Watershed

(DAO 2006-18) (Region 6)

Sarangani Bay WQMA

(DAO 2009-12) (Region 12)

Areas within LLDA jurisdiction

(RA 9275)

Sinocalan-Dagupan RS WQMA

(DAO 2011-14) (Region 1)

Davao River WQMA(DAO 2013-04) (Region 11)

Taguibo River WQMA

(DAO 2012-11) (Region 13)

Tumaga River WQMA(DAO 2013-01) (Region 9)

Imus – Ylang Ylang –Rio Grande Rivers WQMA

(DAO 2013-02) (Region 4A)

Calapan River WQMA(DAO 2013-03) (Region 4B)

San Juan River System WQMA(DAO 2012-04) (NCR)

Balili River WQMA(DAO 2013-05) (CAR)

Pinacanauan de TuguegaraoRiver WQMA (DAO 2013-06)

(Region 2)

Lake Buhi Watershed WQMA(DAO 2013-16) (Region 5)

Cagayan de Oro River Basin and Adjacent Rivers

(DAO 2013-18) (Region 10)

Ormoc Bay and its

Associated Watersheds WQMA

(DAO 2013-21) (Region 8)

Butuanon River Watershed

(DAO 2014-05) (Region 7) Jalaur River System

(DAO 2014-08) (Region 6)

Bued River System WQMA (DAO 2016-03) (CAR)

Naga River Watershed WQMA (DAO 2016-04) (Region 5)

Coron Bay WQMA(DAO 2016-05) (Region 4B)

Sabang Bay WQMA(DAO 2016-06)

(Region 4B)

Lake Sebu WQMA(DAO 2016-14) (Region 12)

Ayala River WQMA(DAO 2016-15) (Region 9)

Tagoloan River Basin WQMA(DAO 2016-16) (Region 10)

Talomo River WQMA

(DAO 2016-17) (Region 11)

Naguilian River System WQMA(DAO 2016-18) (Region 1)

Cañas-Maalimango Rivers WQMA(DAO 2016-19) (Region 4A)

Dupong, Matlang and Merida WQMA

(DAO 2018-04) (Region 8)

Upper Amburayan River System WQMA

(DAO 2018-02) (CAR) Lower Amburayan River System WQMA

(DAO 2018-03) (Region 1)

MaNaTuTi River System WQMA(DAO 2018-10) (NCR)

Iyam-Dumacaa River System WQMA(DAO 2018-11) (Region 4A)

Las Pinas-ParanaqueRiver System WQMA

(DAO 2018-12) (NCR)

Boracay Island WQMACA

(DAO 2019-15) (Region 6)

Iloilo-Batiano RS WQMA

(DAO 2009-11) (Region 6)

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DAO 2016-08 (WATER QUALITY GUIDELINES AND GENERAL EFFLUENT STANDARDS OF 2016)

Objectives

• Classification of water bodies in the country• Determination of time trends• Evaluation of stages of deterioration/enhancement in water quality• Evaluation of the need for taking actions in preventing, controlling, or

abating water pollution• Designation of water quality management areas (WQMA)• Setting the General Effluent Standards (GES)

Water Quality Management


ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000 (RA 9003)

• An act providing for a systematic, comprehensive and ecological wastemanagement program to ensure the protection of public health and theenvironment.

• Mandates EMB to provide secretariat support to the National Solid WasteManagement Commission in the implementation of the solid waste managementplans and prescribe policies to achieve the objectives of the Act. The Act alsomandates the establishment and operation of the National Ecology Center (NEC)which the EMB Director shall head. The NEC shall take charge in informationdissemination, consultation, education and training of various local governmentunits on ecological waste management.


ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000 REPUBLIC ACT 9003


Solid Waste Management

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Guidelines Governing Waste-To-Energy (WtE) Facilities for the IntegratedManagement of Municipal Solid Waste

DENR ADMINISTRATIVE ORDER (DAO) NO. 2019-21

SUBJECT:

These guidelines cover the requirements, and procedures on the establishment and operationof the WtE facilities utilizing municipal solid wastes.

a) All WtE facilities shall undergo Environmental Impact Statement System and secure allapplicable environmental permits, clearances and other legal requirements fromconcerned agencies prior to construction, set-up and operation of a WtE facility.

b) Documentation for compliance with the requirements of PD 1586 shall include an environmental and health risk assessment.

c) The host LGU including the LGUs where the source of the feedstock will originate fromshall ensure that the plan to establish and/or utilize WtE facility is integrated in theirapproved 10-year solid waste management plan consistent with the provisions of RA9003.



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d) The host LGU are allowed to implement clustering and/or formpartnerships with the private sector in the establishment, constructionand operation of WtE facility.

e) The proponent shall submit an Environmental Technology Verification(ETV) Statement and Report following the DOST ETV Protocol as perDENR-DOST Joint Administrative Order 2006-001.

SECTION 5. REQUIREMENTS



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INVESTMENT NEEDS

Estimated total waste generation in 2020 58,700 Tons per day

Total waste that goes to SWM facilities per day 16,038 Tons per day or 27%

Total remaining waste that needs to be addressed through additional SWM facilities

42,689 Tons per day or 73%

SWM Facilities performance

Established Servicing Barangays

Total number of barangays

11,558 14,483 42,046

Materials Recovery Facilities* Disposal Facilities*

Open

Dumpsites

due for

closure

Sanitary

Landfills

LGUs

Served by

SLFs

Total LGUs to be

served by an SLF

233 189 399 1,634*as of December 2020



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ENVIRONMENTAL IMPACT STATEMENT SYSTEM OF 1978 (PD 1586)

• Requires all government agencies, government-owned or controlledcorporation and private companies to prepare an environmental impactassessment for any projects and undertaking that will significantlyaffect the quality of the environment. This assessment is essential inobtaining an Environmental Compliance Certificate (ECC) issued byDENR.


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Environmental Impact Assessment


TOXIC SUBSTANCES AND HAZARDOUS AND NUCLEAR WASTE CONTROL ACT OF 1990 (RA 6969)

•The Act mandates the DENR through EMB for the propermanagement of industrial chemicals and hazardous wastes inall aspects of its life cycle, “cradle to grave”- generation,transportation, treatment, storage and disposal.


RA 6969, “Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990” (Title II)PERMIT & CLEARANCES SYSTEM

Types Applicable Scope

Chemical Control Order (CCO) Registration Certificate Mercury and Mercury Compounds, Cyanide and Cyanide Compounds, Asbestos, Polychlorinated Biphenyls, ODS and ODS Alternative Substance, Lead and Lead compounds and Arsenic and Arsenic Compounds

Chemical Control Order (CCO) Importation Clearance/*Pre-Shipment Importation Clearance

Mercury and Mercury Compounds, Cyanide and Cyanide Compounds, Asbestos, *ODS and ODS Alternative Substances, Lead and Lead compounds and Arsenic and Arsenic Compounds

Priority Chemical List Compliance Certificate (PCL) Regulated chemicals under DAO 2007-23 (excluding CCO chemicals)

Pre-Manufacture Pre-Importation Notification Compliance Certificate (PMPIN)

Notification of new chemicals

Small Quantity Importation Clearance (SQI) Clearance New chemical substances with <1,000 kg importation per year

Polymer Exemption Polymers and Polymers of Low Concern Exemption from PMPIN

Chemical Management

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HAZARDOUS WASTES TREATMENT AND DISPOSAL SERVICES

• Covered by the permitting requirements of DENR Administrative Order No. 22 Series of2013: Revised Procedures and Standards for the Management of Hazardous Wastes(Revising DAO 2004-36)

• Any entity who shall perform treatment, re-use/recycling and disposal of hazardous wasteslisted in Table 2.1 of DAO 2013-22 is required to register as Treatment, Storage andDisposal (TSD) Facility

• Key Players in Hazardous Waste (HW) Management HW Generator

HW Transporter

HW Treatment, Storage and Disposal (TSD) Facility


Hazardous Waste Management

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HAZARDOUS WASTES TREATMENT AND DISPOSAL SERVICES

• Exempted Wastes:Household wastes such as garbage under Republic Act 9003 except special wastesWastewaters which are disposed of on-site through the sewerage systemMaterials from building demolition except those containing asbestos Septic tank effluents and associated sullage wastewatersUntreated spoils from mining, quarrying and excavation works but not materials

in the nature of tailings, commercially treated materials and mine facilityconsumables

• Investment Concern Limited number of TSD facilities especially utilizing thermal (burn) technology for

volume reduction of hazardous wastes. Investment should focus on other regionshaving no access to TSD facilities that are mostly situated in the island of Luzon.

Hazardous Waste Management

20 ASEAN-Japan Online Forum February 24-25, 2021

2020 Investment Priorities Plan (IPP)

Priority Investment Areas under 2020 IPP:

A. Preferred Activities

B. Export Activities

C. Special Laws

Activities that are Environment Services-related

Industrial Waste Treatment

Bulk Water Treatment

and Supply

Wastewater Treatment

Environmental or Climate

Change-related Projects


BOI Incentives (E.O. No. 226)

Fiscal Incentives

1. Income Tax Holiday : 4-6 years (max of 8 years)

2. Additional deduction for labor expense

3. Zero Percent Duty on importation of capital equipment, spare parts and accessories

4. Tax and duty exemption on importation of breeding stocks and genetic materials

5. Tax and duty exemption on importation of spare parts and supplies

6. Exemption from wharfage dues and any export tax, duty, impost and fees

Non-Fiscal Incentives

1. Unrestricted use of consigned equipment

2. Employment of foreign nationals

3. Simplification of customs procedures

4. Access to bonded manufacturing warehouse


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