CHAPTER IV
Incentives
SECTION 45. Incentives. — (a) Rewards, monetary or otherwise, shall be provided to individuals, private organizations and entities, including nongovernment organizations, that have undertaken outstanding and innovative projects, technologies, processes and techniques or activities in re-use, recycling and reduction. Said rewards shall be sourced from the Fund herein created.
(b) An incentive scheme is hereby provided for the purpose of encouraging LGUs, enterprises, or private entities, including NGOs, to develop or undertake an effective solid waste management, or actively participate in any program geared towards the promotion thereof as provided for in this Act.
(1) Fiscal Incentives — Consistent with the provisions of E.O. 226, otherwise known as the Omnibus Investments Code, the following tax incentives shall be granted:
(a) Tax and Duty Exemption on Imported Capital Equipment and Vehicles — Within ten (10) years upon effectivity of this Act, LGUs, enterprises or private entities shall enjoy tax and duty-free importation of machinery, equipment, vehicles and spare parts used for collection, transportation, segregation, recycling, re-use and composting of solid wastes: Provided, That the importation of such machinery, equipment, vehicle and spare parts shall comply with the following conditions:
(i) They are not manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices;
(ii) They are reasonably needed and will be used actually, directly and exclusively for the above mentioned activities;
(iii) The approval of the Board of Investment (BOI) of the DTI for the importation of such machinery, equipment, vehicle and spare parts.
Provided, further, That the sale, transfer or disposition of such machinery, equipment, vehicle and spare parts, without prior approval of the BOI, within five (5) years from the date of acquisition shall be prohibited, otherwise, the LGU concerned, enterprises or private entities and the vendee, transferee or assignee shall be solidarily liable to pay twice the amount of tax and duty exemption given it.
(b) Tax Credit on Domestic Capital Equipment — Within ten (10) years from the effectivity of this Act, a tax credit equivalent to 50% of the value of the national internal revenue taxes and customs duties that would have been waived on the machinery, equipment, vehicle and spare parts, had these items been imported shall be given to enterprises, private entities, including NGOs, subject to the same conditions and prohibition cited in the preceding paragraph.
(c) Tax and Duty Exemption of Donations, Legacies and Gift — All legacies, gifts and donations to LGUs, enterprises or private entities, including NGOs, for the support and maintenance of the program for effective solid waste management shall be exempt from all internal revenue taxes and customs duties, and shall be deductible in full from the gross income of the donor for income tax purposes.
(2) Non-Fiscal Incentives — LGUs, enterprises or private entities availing of tax incentives under this Act shall also be entitled to applicable non-fiscal incentives provided for under E.O. 226, otherwise known as the Omnibus Investments Code.
The Commission shall provide incentives to businesses and industries that are engaged in the recycling of wastes and which are registered with the Commission and have been issued ECCs in accordance with the guidelines established by the Commission. Such incentives shall include simplified procedures for the importation of equipment, spare parts, new materials, and supplies, and for the export of processed products.
(3) Financial Assistance Program — Government financial institutions such as the Development Bank of the Philippines (DBP), Landbank of the Philippines (LBP), 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 to extend financial services to individuals, enterprises, or private entities engaged in solid waste management.
(4) Extension of Grants to LGUs — Provinces, cities and municipalities whose solid waste management plans have been duly approved by the Commission or who have been commended by the Commission for adopting innovative solid waste management programs may be entitled to receive grants for the purpose of developing their technical capacities toward actively participating in the program for effective and sustainable solid waste management.
(5) Incentives to Host LGUs — Local government units who host common waste management facilities shall be entitled to incentives.
CHAPTER V
Financing Solid Waste Management
SECTION 46. Solid Waste Management Fund. — There is hereby created, as a special account in the National Treasury, a Solid Waste Management Fund to be administered by the Commission. Such fund shall be sourced from the following:
(a) Fines and penalties imposed, proceeds of permits and licenses issued by the Department under this Act, donations, endowments, grants and contributions from domestic and foreign sources; and
(b) Amounts specifically appropriated for the Fund under the annual General Appropriations Act.
The Fund shall be used to finance the following:
(1) products, facilities, technologies and processes to enhance proper solid waste management;
(2) awards and incentives;
(3) research programs;
(4) information, education, communication and monitoring activities;
(5) technical assistance; and
(6) capability building activities.
LGUs are entitled to avail of the Fund on the basis of their approved solid waste management plan. Specific criteria for the availment of the Fund shall be prepared by the Commission.
The fines collected under Sec. 49 shall be allocated to the LGU where the fined prohibited acts are committed in order to finance the solid waste management of said LGU. Such allocation shall be based on a sharing scheme between the Fund and the LGU concerned.
In no case, however, shall the Fund be used for the creation of positions or payment of salaries and wages.
SECTION 47. Authority to Collect Solid Waste Management Fees. — The local government unit shall impose fees in amounts sufficient to pay the costs of preparing, adopting, and implementing a solid waste management plan prepared pursuant to this Act. The fees shall be based on the following minimum factors:
(a) types of solid waste;
(b) amount/volume of waste; and
(c) distance of the transfer station to the waste management facility.
The fees shall be used to pay the actual costs incurred by the LGU in collecting the local fees. In determining the amounts of the fees, an LGU shall include only those costs directly related to the adoption and implementation of the plan and the setting and collection of the local fees.
CHAPTER VI
Penal Provisions
SECTION 48. Prohibited Acts. — The following acts are prohibited:
(1) Littering, throwing, dumping of waste matters in public places, such as roads, sidewalks, canals, esteros or parks, and establishment, or causing or permitting the same;
(2) Undertaking activities or operating, collecting or transporting equipment in violation of sanitation operation and other requirements or permits set forth in or established pursuant to this Act;
(3) The open burning of solid waste;
(4) Causing or permitting the collection of non-segregated or unsorted waste;
(5) Squatting in open dumps and landfills;
(6) Open dumping, burying of biodegradable or non-biodegradable materials in flood-prone areas;
(7) Unauthorized removal of recyclable material intended for collection by authorized persons;
(8) The mixing of source-separated recyclable material with other solid waste in any vehicle, box, container or receptacle used in solid waste collection or disposal;
(9) Establishment or operation of open dumps as enjoined in this Act, or closure of said dumps in violation of Sec. 37;
(10) The manufacture, distribution or use of non-environmentally acceptable packaging materials;
(11) Importation of consumer products packaged in non-environmentally acceptable materials;
(12) Importation of toxic wastes misrepresented as “recyclable” or “with recyclable content”;
(13) Transport and dumping in bulk of collected domestic, industrial, commercial and institutional wastes in areas other than centers or facilities prescribed under this Act;
(14) Site preparation, construction, expansion or operation of waste management facilities without an Environmental Compliance Certificate required pursuant to Presidential Decree No. 1586 and this Act and not conforming with the land use plan of the LGU;
(15) The construction of any establishment within two hundred (200) meters from open dumps or controlled dumps, or sanitary landfills; and
(16) The construction or operation of landfills or any waste disposal facility on any aquifer, groundwater reservoir or watershed area and or any portions thereof.
SECTION 49. Fines and Penalties. — (a) Any person who violates Sec. 48, paragraph (1) shall, upon conviction, be punished with a fine of not less than Three hundred pesos (P300.00) but not more than One thousand pesos (P1,000.00) or render community service for not less than one (1) day to not more than fifteen (15) days to an LGU where such prohibited acts are committed, or both;
(b) Any person who violates Sec. 48, pars. (2) and (3), shall, upon conviction, be punished with a fine of not less than Three hundred pesos (P300.00) but not more than One thousand pesos (P1,000.00) or imprisonment of not less than one (1) day to not more than fifteen (15) days, or both;
(c) Any person who violates Sec. 48, pars. (4), (5), (6), and (7) shall, upon conviction, be punished with a fine of not less than One thousand pesos (P1,000.00) but not more than Three thousand pesos (P3,000.00) or imprisonment of not less than fifteen (15) days but not more than six (6) months, or both;
(d) Any person who violates Sec. 48, pars. (8), (9), (10) and (11) for the first time shall, upon conviction, pay a fine of Five hundred thousand pesos (P500,000.00) plus an amount not less than five percent (5%) but not more than ten percent (10%) of his net annual income during the previous year.
The additional penalty of imprisonment of a minimum period of one (1) year, but not to exceed three (3) years at the discretion of the court, shall be imposed for second or subsequent violations of Sec. 48, paragraphs (9) and (10).
(e) Any person who violates Sec. 48, pars. (12) and (13), shall, upon conviction, be punished with a fine of not less than Ten thousand pesos (P10,000.00) but not more than Two hundred thousand pesos (P200,000.00) or imprisonment of not less than thirty (30) days but not more than three (3) years, or both;
(f) Any person who violates Sec. 48, pars. (14), (15) and (16) shall, upon conviction, be punished with a fine not less than One hundred thousand pesos (P100,000.00) but not more than One million pesos (P1,000,000.00), or imprisonment not less than one (1) year but not more than six (6) years, or both.
If the offense is committed by a corporation, partnership, or other juridical entity duly organized in accordance with 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.
If the offender is an alien, he shall, after service of the sentence prescribed above, be deported without further administrative proceedings.
The fines herein prescribed shall be increased by at least ten percent (10%) every three (3) years to compensate for inflation and to maintain the deterrent function of such fines.
SECTION 50. Administrative Sanctions. — Local government officials and officials of government agencies concerned who fail to comply with and enforce rules and regulations promulgated relative to this Act shall be charged administratively in accordance with R.A. 7160 and other existing laws, rules and regulations.
CHAPTER VII
Miscellaneous Provisions
SECTION 51. Mandatory Public Hearings. — Mandatory public hearings for the national framework and local government solid waste management plans shall be undertaken by the Commission and the respective Boards in accordance with the process to be formulated in the implementing rules and regulations.
SECTION 52. Citizen Suits. — For purposes of enforcing the provisions of this Act or its implementing rules and regulations, any citizen may file an appropriate civil, criminal or administrative action in the proper courts/bodies against:
(a) Any person who violates or fails to comply with the provisions of this Act or its implementing rules and regulations; or
(b) The Department or other implementing agencies with respect to orders, rules and regulations issued inconsistent with this Act; and/or
(c) Any public officer who willfully or grossly neglects the performance of an act specifically enjoined as a duty by this Act or its implementing rules and regulations; or abuses his authority in the performance of his duty; or, in any manner, improperly performs his duties under this Act or its implementing rules and regulations: Provided, however, That no suit can be filed until after thirty-day (30) notice has been given to the public officer and the alleged violator concerned and no appropriate action has been taken thereon.
The Court shall exempt such action from the payment of filing fees and shall, likewise, upon prima facie showing of the non-enforcement or violation complained of, exempt the plaintiff from the filing of an injunction bond for the issuance of a preliminary injunction.
In the event that the citizen should prevail, the Court shall award reasonable attorney’s fees, moral damages and litigation costs as appropriate.
SECTION 53. Suits and Strategic Legal Action Against Public Participation (SLAPP) and the Enforcement of this Act. — Where a suit is brought against a person who filed an action as provided in Sec. 52 of this Act, or against any person, institution or government agency that implements this Act, it shall be the duty of the investigating prosecutor or the Court, as the case may be, to immediately make a determination not exceeding thirty (30) days whether said legal action has been filed to harass, vex, exert undue pressure or stifle such legal recourses of the person complaining of or enforcing the provisions of this Act. Upon determination thereof, evidence warranting the same, the Court shall dismiss the case and award attorney’s fees and double damages.
This provision shall also apply and benefit public officers who are sued for acts committed in their official capacity, there being no grave abuse of authority, and done in the course of enforcing this Act.
SECTION 54. Research on Solid Waste Management. — The Department, after consultations with the cooperating agencies, shall encourage, cooperate with, and render financial and other assistance to appropriate government agencies and private agencies, institutions and individuals in the conduct and promotion of researches, experiments, and other studies on solid waste management, particularly those relating to:
(a) adverse health effects of the release into the environment of materials present in solid wastes, and methods to eliminate said effects;
(b) the operation and financing of solid waste disposal programs;
(c) the planning, implementation and operation of resource recovery and resource conservation systems;
(d) the production of usable forms of recovered resources, including fuel from solid waste;
(e) the development and application of new and improved methods of collecting and disposing of solid waste and processing and recovering materials and energy from solid waste;
(f) improvements in land disposal practices for solid waste (including sludge); and
(g) development of new uses of recovered resources and identification of existing or potential markets of recovered resources.
In carrying out solid waste researches and studies, the Secretary of the Department or the authorized representative may make grants or enter into contracts with government agencies, nongovernment organizations and private persons.
SECTION 55. Public Education and Information. — The Commission shall, in coordination with DECS, TESDA, CHED, DILG and PIA, conduct a continuing education and information campaign on solid waste management. Such education and information program shall:
(a) Aim to develop public awareness of the ill-effects of and the community-based solutions to the solid waste problem;
(b) Concentrate on activities which are feasible and which will have the greatest impact on the solid waste problem of the country, like resource conservation and recovery, recycling, segregation at source, re-use, reduction and composting of solid waste; and
(c) Encourage the general public, accredited NGOs and people’s organizations to publicly endorse and patronize environmentally acceptable products and packaging materials.
SECTION 56. Environmental Education in the Formal and Non-formal Sectors. — The national government, through the DECS and in coordination with concerned government agencies, NGOs and private institutions, shall strengthen the integration of environmental concerns in school curricula at all levels, with particular emphasis on the theory and practice of waste management principles like waste minimization, specifically resource conservation and recovery, segregation at source, reduction, recycling, re-use and composting, in order to promote environmental awareness and action among the citizenry.
SECTION 57. Business and Industry Role. — The Commission shall encourage commercial and industrial establishments, through appropriate incentives other than tax incentives, to initiate, participate and invest in integrated ecological solid waste management projects, to manufacture environment-friendly products, to introduce, develop and adopt innovative processes that shall recycle and re-use materials, conserve raw materials and energy, reduce waste, and prevent pollution, and to undertake community activities to promote and propagate effective solid waste management practices.
SECTION 58. Appropriations. — For the initial operating expenses of the Commission and the National Ecology Center as well as the expenses of the local government units to carry out the mandate of this Act, the amount of Twenty million pesos (P20,000,000.00) is hereby appropriated from the Organizational Adjustment Fund on the year this Act is approved. Thereafter, it shall submit to the Department of Budget and Management its proposed budget for inclusion in the General Appropriations Act.
SECTION 59. Implementing Rules and Regulations (IRR). — The Department, in coordination with the Committees on Environment and Ecology of the Senate and House of Representatives, respectively, the representatives of the Leagues of Provinces, Cities, Municipalities and Barangay Councils, the MMDA and other concerned agencies, shall promulgate the implementing rules and regulations of this Act, within one (1) year after its enactment: Provided, That rules and regulations issued by other government agencies and instrumentalities for the prevention and/or abatement of the solid waste management problem not inconsistent with this Act shall supplement the rules and regulations issued by the Department, pursuant to the provisions of this Act.
The draft of the IRR shall be published and be the subject of public consultations with affected sectors. It shall be submitted to the Committees on Environment and Ecology of the Senate and House of Representatives, respectively, for review before approval by the Secretary.
SECTION 60. Joint Congressional Oversight Committee. — There is hereby created a Joint Congressional Oversight Committee to monitor the implementation of the Act and to oversee the functions of the Commission. The Committee shall be composed of five (5) Senators and five (5) Representatives to be appointed by the Senate President and the Speaker of the House of Representatives, respectively. The Oversight Committee shall be co-chaired by a Senator and a Representative designated by the Senate President and the Speaker of the House of Representatives, respectively.
SECTION 61. Abolition of the Presidential Task Force on Waste Management and the Project Management Office on Solid Waste Management. — The Presidential Task Force on Waste Management which was created by virtue of Memorandum Circular No. 39 dated November 2, 1987, as amended by Memorandum Circular No. 39A and 88 is hereby abolished. Further, pursuant to Administrative Order No. 90 dated October 19, 1992, the Project Management Office on Solid Waste Management is likewise hereby abolished. Consequently, their powers and functions shall be absorbed by the Commission pursuant to the provisions of this Act.
SECTION 62. Transitory Provision. — Pending the establishment of the framework under Sec. 15 hereof, plans under Sec. 16 and promulgation of the IRR under Sec. 59 of this Act, existing laws, regulations, programs and projects on solid waste management shall be enforced: Provided, That for specific undertaking, the same may be revised in the interim in accordance with the intentions of this Act.
SECTION 63. Report to Congress. — The Commission shall report to Congress, not later than March 30 of every year following the approval of this Act, giving a detailed account of its accomplishments and progress on solid waste management during the year and make the necessary recommendations in areas where there is need for legislative action.
SECTION 64. Separability Clause. — If any provision of this Act or the application of such provision to any person or circumstances is declared unconstitutional, the remainder of the Act or the application of such provision to other persons or circumstances shall not be affected by such declaration.
SECTION 65. Repealing Clause. — All laws, decrees, issuances, rules and regulations, or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SECTION 66. Effectivity. — This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.