Single-use Plastics Regulation and Management Act

Dias ottin TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 25 JUL 14 P4:14 First Regular Session ) SENATE RECEN S. No. _ Introduced by SENATOR MARK A. VILLAR AN ACT REGULATING THE MANUFACTURING, IMPORTATION, AND USE OF SINGLE- USE PLASTIC PRODUCTS, AND PROVIDING PENALTIES, LEVIES, AND INCENTIVES SYSTEM FOR INDUSTRIES, BUSINESS ENTERPRISES, AND CONSUMERS THEREOF EXPLANATORY NOTE In 2023, a study by the United Kingdom-based Utility Bidder revealed that the Philippines was the top-ranked plastic polluter in the world, accounting for 36% of the world's total plastic waste. Meanwhile, World Bank estimates indicate that the country uses an overwhelming 163 million pieces of plastic sachets per day, generating a staggering 2.3 million tons of plastic waste annually. The ubiquity of plastic not only poses a challenge in waste management but also impacts food security, increases health risks, and weakens our disaster resiliency. According to a study funded by the National Research Council of the Philippines, plastic debris and microplastics are present in various fish and water organisms, which end up in our food supply. Additionally, sando bags, sachets, plastic cups, and other plastic items are commonly seen floating or left behind by the frequent floods experienced by the country. Although the ban on single-use plastics has gained global traction, the Philippines has had a fragmented and minimal response. Currently, only a handful of local government units, like Quezon City, Boracay, Molave in Zamboanga del Sur, and Palanan in Isabela, have regulations or total bans in place.

Thus, this bill seeks to resolve the single-use plastic crisis in the Philippines through a holistic and sustained approach. Particularly, the use of single-use plastics by all business enterprises, retailers, and consumers shall be phased out within a one- year transition period and then eventually prohibited. All those used and manufactured before the effectivity of this Act shall be recycled. Moreover, during the transition period, a levy of Php5.00 shall be charged to consumers for each piece of single-use plastic. Thereafter, consumers are incentivized to use their own recyclable containers with a Php5.00 discount for take-outs and selling food and beverages. In view of the foregoing, immediate passage of this bill is earnestly sought. ~~^v MARK A. VILLAR ROC

Diar ofte TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 25 JUL 14 P4:14 First Regular Session ) SENATE RECEIV: S. No. Introduced by Senator MARK A. VILLAR AN ACT REGULATING THE MANUFACTURING, IMPORTATION, AND USE OF SINGLE- USE PLASTIC PRODUCTS, AND PROVIDING PENALTIES, LEVIES, AND INCENTIVES SYSTEM FOR INDUSTRIES, BUSINESS ENTERPRISES, AND CONSUMERS THEREOF Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section. 1. Short Title. - This Act shall be known as the "Single-Use Plastics

Regulation and Management Act".

Sec. 2. Declaration of Policy. - It is a declared policy of the State to protect and

advance the right of the people to a balanced healthful ecology in accord with the 5 rhythm and harmony of nature while recognizing the indispensable role of the private sector, encouraging private enterprise, and providing incentives to needed investments. The State hereby adopts sustainability in all aspects of development that ensures healthy lives and promotes well-being for all ages, builds resilient infrastructure and communities, promotes inclusive, sustainable, and responsible industrialization, consumption, and production, fosters innovation, and reduces pollution of all kinds. Towards these ends, the State shall develop and implement policies, systems, and practices in both the public and private sectors that promote the judicious management of resources and conservation of the environment.

Sec. 3. Definition of Terms. - For the purposes of this Act, the following terms

2 are hereby defined as follows: (a) Business enterprises refer to establishments engaged in the production, manufacturing, processing, repacking, assembly, or sale of goods and/or services, including service-oriented enterprises. They shall include retailers, self-employed or own-account workers, micro, small, and medium enterprises (MSMEs), and community-based business enterprises. (b) Climate change refers to a change in climate that is identifiable by changes in the mean or variability of its properties and that persists for an extended period, 10 typically decades or longer, whether due to natural variability or as a result of human 11 activity; (c) Consumer refers to a person who is a purchaser, lessee, recipient or prospective purchaser, lessor, or recipient of consumer products, services, or credit. (d) Disposal refers to the discharge, deposit, dumping, spilling, leaking, or placing of any waste into or on land. (e) Incentives refers to incentives provided for under Republic Act No. 9520 or 17 the "Philippine Cooperative Code of 2008", Republic Act No. 9178 or the "Barangay Micro-Business Enterprise Act of 2002", Republic Act No. 9501 or the "Magna Carta 19 for Micro, Small, and Medium Enterprises, Executive Order no. 226 or the "Omnibus 20 Investment Code of 1987", Republic Act No. 10771 or the "Green Jobs Act of 2016" 21 or incentives as defined by local government units (LGUs) through an ordinance specifically for this purpose, where applicable. (f) Life Cycle Assessment refers to the process of evaluating the effects that a product has on the environment over the entire period of its life cycle, which covers all the processes required: extraction and processing; manufacture, transport, and distribution; use, reuse, and maintenance; recycling; and final disposal. (g) Microplastics refer to small pieces of plastic debris less than five millimeters 28 (5mm) in diameter resulting from plastic waste. (h) Plastic refers to a lightweight, hygienic, and resistant material that can be molded in a variety of ways and utilized in a wide range of applications. (i) Recyclable material refers to any waste material retrieved from the waste stream and free from contamination that can still be converted into suitable beneficial

use or for other purposes, including, but not limited to, newspaper, ferrous scrap 2 metal, non-ferrous scrap metal, used oil, corrugated cardboard, aluminum, glass, 3 office paper, tin cans and other materials as may be determined by the National Solid Waste Management Commission (NSWMC). (i) Recycled material refers to post-consumer material that has been recycled and returned to the economy. (k) Recycling refers to the treatment of used or waste materials through a process of making them suitable for beneficial use and other purposes, and includes 9 any process by which solid waste materials are transformed into new products in such 10 a manner that the original product may lose their identity, and which may be used as raw materials for the production of other goods or services. (l) Retailer refers to a person engaged in the business of selling consumer products directly to consumers. (m) Re-use refers to the process of recovering materials intended for the same or different purpose without the alteration of physical and chemical characteristics. (n) Reusable material/plastics/packaging shall refer to any material specifically designed and manufactured for multiple re-use and extended life, which meets the following requirements: (i) May be capable of composting and is biodegradable; (ii) Is accepted for recycling; and (iii) Does not contain any toxic or harmful substance or chemical such as but not limited to lead, cadmium, or any other heavy metal as provided for by existing rules and regulations of the Department of Environment and Natural Resources (DENR). (o) Single-use plastics refer to disposable plastics which are commonly used for plastic packaging, including items intended to be used only once before they are thrown away or recycled, such as grocery bags, food packaging films and bags, 28 manufacturing water bottles, straws, stirrers, containers, styrofoam, cups, sachets, and plastic cutlery. (p) Source reduction refers to the reduction of solid waste before it enters the solid waste stream by methods such as product design, materials substitution, 32 materials reuse, and packaging restrictions.

Sec. 4. Scope. - This Act shall apply to the manufacture, importation, use,

recycling, and disposal of all single-use plastics used in trade or commerce in business enterprises, as well as by retailers and consumers, wherever located in the Philippines, as defined under Section 3 of this Act.

Sec. 5. Prohibition and phase-out of single-use plastics; Levy for the use in the

interim period and discounts for consumers. - The phase-out of single-use plastics by all business enterprises, retailers and consumers shall be in full force and effect one (1) year from the effectivity of this Act. Within the interim period of one (1) year, the following shall be enforced: (a) The provision of single-use plastics by food establishments, markets, and retailers shall be strictly prohibited; (b) Consumers shall be encouraged or diverted to use reusable materials as substitute for single-use plastics; (c) Single-use plastics already manufactured and in circulation in the general market shall be collected, recycled, and properly disposed of by the manufacturers under the provisions of this Act; (d) Business enterprises that cannot avoid using single-use plastic in the pursuit 18 of their business must ensure that these are recycled in accordance with Section 7 of 19 this Act; (e) For each piece of single-use plastics already manufactured and in circulation at the time, the retailers shall charge the consumer a minimum levy of Five pesos (Php5.00); (f) The amount collected in subparagraph (e) of this Section by the retailers shall be reflected in the official receipt. Twenty percent (20%) of the said amount shall be kept by the business enterprise to cover the cost of the said bags, while eighty percent (80%) shall be remitted monthly, quarterly, or semi-annually to the Special Plastic Fund created under this Act. At the end of one (1) year period, and upon full effectivity of this Act, the 29 further and continued provision by all business enterprises and use by consumers of single-use plastics shall be strictly prohibited.

For take-outs and selling of food and beverages, a discount of Five pesos 2 (Php5.00) shall be given to the consumer for bringing their own reusable or recyclable 3 containers.

Sec. 6. Prohibition on the importation of single-use plastics. - Within one (1)

5 year from the effectivity of this Act, the Department of Finance (DOF), through the Bureau of Customs (BOC), in coordination with relevant agencies such as DENR, Department of Trade and Industry (DTI), Department of Health (DOH) and the Climate Change Commission (CCC), shall ensure that no single-use plastics, including waste products from the same, will be imported to the country. Tariffs shall be 10 correspondingly imposed by the Tariff Commission and collected by the BOC in 11 accordance with the rules and regulations to be issued for the implementation of this 12 Act.

Sec. 7. Recycling of used single-use plastics. - Used single-use plastics, when

14 allowed by this Act or those manufactured or used before the effectivity of this Act, 15 shall be recycled. It shall be the duty of the plastic manufacturers to recycle the said single-use plastics in a manner consistent with existing laws, rules, and regulations, and to ensure that no harmful chemicals or substances are released into the environment. The establishment of Materials Recovery Facility (MRFs), which shall be 20 obligatory upon the business enterprises, shall serve as the collection points for used single-use plastics. LGUs, plastic manufacturers, and business enterprises shall put systems and procedures in place for the proper collection of the used single-use 23 plastics and their delivery to the recycling centers. It shall be the responsibility of the manufacturers that these plastics are properly collected, recycled, and disposed of, in accordance with this Act. Manufacturers shall also maintain records describing the recovery, collection, transport, and recycling of plastic bags collected annually, which records shall be made available to the NSWMC and/or the LGU concerned, upon request, to demonstrate compliance with this Act.

Sec. 8. Proper disposal and management of plastic wastes. - The disposal and

management of plastic waste shall be done in accordance with the provisions of Republic Act No. 9003 or the "Ecological Solid Waste Management Act of 2000". The

1 DENR, in coordination with the Department of Science and Technology (DOST), shall 2 develop the appropriate standards for the disposal of plastic wastes, ensuring that 3 zero emissions are achieved and no harmful chemicals are released into the environment in the process.

Sec. 9. Research and Development (R&D) for Single-use Plastic Packaging

Alternatives. - The DOST and NSWMC shall include and fund research on suitable alternatives to single-use plastic packaging. The NSWMC and DOST shall also provide assistance to DENR and manufacturers for the implementation of this Act, particularly regarding the proper recycling and disposal of used single-use plastics, and the development of more environmentally-friendly types of plastics used as primary packaging materials, among others. Within six (6) months upon the effectivity of this Act, the DTI, Technical Education and Skills Development Authority (TESDA), Department of Labor and Employment (DOLE), and other appropriate government agencies, in coordination with plastic manufacturers/industries, non-government and civil society organizations, and other concerned stakeholders shall determine the impact of this Act on affected plastic industry employees and workers and, if applicable, develop capacity-building programs for alternative livelihood opportunities for affected employees and workers 19 in areas such as recycling of used plastic products and cottage industries, among 20 others.

Sec. 10. Program for affected employees and workers of the plastic industry. -

Within six (6) months from the effectivity of this Act, massive research and technology 23 development initiatives, pilot-testing of innovations and technologies resulting from these studies, and capacity-building activities shall be undertaken with plastic- manufacturing industries and business enterprises for their possible adoption of these technologies. The DOST, NEC, DTI, DOLE, and TESDA shall implement the capacity-building program for relevant stakeholders. DOST, in coordination with the NEC, shall provide the LGUs with technical assistance, training, and continuing capability-building programs to attain the objectives of this Act.

Sec. 11. Inclusion in the Philippine National Standards (PNS). - The NSWMC,

DOST, and DTI shall develop the standards and include in the Philippine National

1 Standards (PNS) the products, items, or technologies from studies that were pilot- 2 tested. It shall include the specifications of the said products, taking into consideration existing and available best technologies and internationally mandated and accepted standards, and in accordance with the provisions, mandates, and standards of this Act.

Sec. 12. Incentives for shifting to plastic alternatives. - The manufacture of

alternatives to single-use plastics under Section 9 of this Act shall be supported and encouraged. Business enterprises, individuals, cooperatives, partnerships, and corporations 10 that engage in the manufacture of identified alternatives to single-use plastics shall 11 be given incentives provided for under the Republic Act No. 9520, Republic Act No. 12 9178, Republic Act No. 9501, Executive Order No. 226, or Republic Act No. 10771, 13 where applicable. The DENR and DTI, in coordination with the DOF, shall provide 14 technical and financial assistance to these manufacturers. LGUs are encouraged and shall be allowed to provide additional benefits and incentives to these manufacturers within their jurisdiction, consistent with existing laws, rules, and regulations, which shall be in addition to the benefits and incentives provided for in the previous paragraph. Nothing in this Act shall prohibit or limit the right of the said manufacturers to 20 be entitled to additional benefits and incentives which may be given by new laws, rules, and regulations in the future.

Sec. 13. Monitoring and market inspection. - The NSWMC and DTI, in

23 coordination with the LGUs, and local law enforcement agencies, shall conduct regular inspection and monitoring of business enterprises and facilities of manufacturers to determine compliance with this Act. Inspection and monitoring shall include the following: (a) Entry or access to the premises of operation and business, including storage rooms and stockrooms; and (b) Inspection of off-site storage facilities, distribution centers, and transshipment points.

Sec. 14. Certification. - The LGUs concerned, after the conduct of a thorough

examination and inspection, shall issue the necessary certificate to show whether or

1 not business enterprises or manufacturers in their jurisdiction are compliant with the mandates and directives of this Act: Provided, That such certification shall be a requirement for the renewal of any permit issued by the LGU for the conduct of business within its jurisdiction.

Sec. 15. NSWMC as the lead implementing agency and other functions. - The

6 NSWMC shall be the lead implementing agency for this Act. It shall aid and assist other agencies involved in the implementation and enforcement of this Act. It shall perform the following functions: (a) Prepare the national strategic single-use plastic roadmap; (b) Lead the R&D agenda preparation and conduct research and pilot-testing of identified alternatives with DOST; (c) Lead in the development of standards for inclusion in the PNS of the products, items, or technologies resulting from studies that were pilot-tested in coordination with DTI and DOST; (d) Review and monitor the implementation of the Act, which includes: (i) Monitoring local-level enforcement through the compilation of local- level ordinances on single-use plastics; (ii) Conducting regular and routine inspections and monitoring of business enterprises and facilities of manufacturers as prescribed under Section 12 of this Act; (e) Adopt a program to provide technical and other capacity-building assistance and support to local government units, business enterprises, concerned citizen groups, and other relevant stakeholders in the implementation and enforcement of this Act; (f) Manage the Special Plastics Fund established under Section 21 of this Act; and (g) Develop safety nets and alternative livelihood programs for business enterprises, plastic manufacturers, small recyclers, and other sectors that will be affected as a result of the single-use phase-out.

Sec. 16. Role of LGUs, and other stakeholders. - LGUs shall have the primary

responsibility in the effort to decrease the percentage of plastic bag waste produced within their respective jurisdictions. They shall also be primarily responsible for the

1 enforcement of the prohibitions of this Act and the monitoring of the collection of recyclable used plastic bags by manufacturers. Other stakeholders such as business groups, consumer groups, and civil society organizations are encouraged to support the implementation of this Act.

Sec. 17. Effect on LGU ordinances effective before or after the effectivity of this

Act. - LGU ordinances imposing bans and prohibitions on the use of plastic bags, promulgated and enforced prior to the effectivity of this Act, shall be considered as 8 automatically amended to be consistent with the provisions and mandates of this Act. LGUs that do not have ordinances enacted upon the effectivity of this Act are 10 also encouraged to enact their respective ordinances in line with the provisions and mandates of this Act. The provisions, mandates, and directives of this Act shall serve as minimum standards and stipulations for LGU ordinances. Nothing in this Act shall be construed as limiting the authority of LGUs to enact ordinances that provide for stricter measures and standards than those provided for in this Act.

Sec. 18. Public information and education campaign. - The DENR, in

coordination with the LGUs, DILG, Department of Education, Commission on Higher 18 Education (CHED), Presidential Communications Operations Office (PCOO), and 19 Philippine Information Agency (PIA), shall conduct a continuing information campaign 20 on the proper regulation of single-use plastics in the country. Such campaign shall be incorporated in and shall be in addition to the public information and education campaign under Section 55 of Republic Act No. 9003.

Sec. 19. Penalties and sanctions. - Violations of any provision of this Act or any

rule or regulation issued related thereto shall be penalized with the following: (a) For Business Enterprises, Micro, Small and Medium Enterprises as defined under Republic Act No. 6977, as amended, Barangay Micro Business Enterprises under Republic Act No. 9178, and all other enterprises and establishments not otherwise value-added tax (VAT) registered in accordance with the National Internal Revenue Code of 1997, as amended (NIRC), the following penalties shall be imposed: (i) First offense - A fine of Five Thousand Pesos (Php5,000.00); (ii) Second offense - A fine of Twenty-Five Thousand Pesos (Php25,000.00) and suspension of its business permit for three (3) months;

(iii) Third offense - A fine of Fifty Thousand Pesos (Php50,000.00) and suspension of its business permit for one (1) year; and (iv) Fourth offense - A fine of One Hundred Thousand Pesos (Php100,000.00) and permanent suspension of its business permit. (b) For VAT registered stores, establishments, and enterprises, and for all plastic, manufacturers found violating this Act the following penalties shaft be imposed: (i) First offense - A fine of Fifty thousand pesos (Php50,000.00); (ii) Second offense - A fine of One hundred thousand pesos (Php 100,000.00) and suspension of its business permit for three (3) months: (lii) Third offense - A fine of Two hundred fifty thousand pesos (Php250,000.00) and suspension of its business permit for one (1) year; and (iv) Fourth offense - A fine of Five hundred thousand pesos (Php 500,000.00) and permanent suspension for its business permit. In case of permanent suspension of business permits under paragraphs (a) or (b), said permit shall not be eligible for renewed application for a period of five (5) years. Thereafter, the LGU concerned may grant the said establishment a business permit, provided its operator can show that steps and measures will be taken to 19 comply with this Act. A further violation after the issuance of a new business permit 20 shall permanently bar the establishment from conducting its activities in the concerned LGU. If the offender in paragraph (a) or (b) is a corporation, trust or firm, partnership, association, or any other entity, the penalty shall be imposed on the entity's responsible officers including, but not limited to, the president, chief executive officer, general manager, managing director, or partner directly responsible thereof.

Sec. 20. Administrative sanctions. - Local government officials and officials of

government agencies who willfully fail to comply with and enforce this Act shall be administratively charged in accordance with Republic Act No. 7160 or the "Local Government Code of 1991" and other existing laws, rules, and regulations.

Sec. 21. Special Fund for Single-use Plastics Regulation. - A Special Fund for

Single-Use Plastics Regulation, hereinafter referred to as the "Fund", to be administered by the NSWMC, is hereby created.

The Fund shall be composed of the tariffs, levies, and fees collected pursuant to this Act to be strictly used for its implementation and enforcement, such as but not limited to: (a) Strengthening the operations of the NSWMC relative to the implementation and enforcement of this Act; (b) Improving the capacity of LGUs, and local law enforcement agencies for the implementation of this Act; (c) Establishing recycling centers or remodeled business enterprises in each region or province; (d) Conducting impact evaluation studies relevant to the implementation of the 11 Act; (e) Conducting information and education campaigns on single-use plastics regulation and related environmental awareness measures; (f) Providing assistance and provision of incentives for manufacturers and community-based incentives for the shift away from single-use plastics, as well as for non-government and civil society organizations promoting proper solid waste management; and (g) Allocating additional provisions for the Solid Waste Management Fund under Republic Act No. 9003. The Fund may be augmented by donations, endowments, grants, and contributions, which shall be exempt from donor's tax and be considered as allowable deductions from the gross income of the donor, in accordance with the provisions of the NIRC.

Sec. 22. Access to information/public disclosure requirements, public access to

records, reports, or notifications. - The public shall have access to records, reports, or information concerning the implementation and mandates of this Act. Such 27 documents shall be available for inspection or reproduction during regular business hours; Provided, That the DENR or concerned LGU may consider a record, report, or information or particular portions thereof confidential and not for public release when such would divulge trade secrets, production, or sales figures or methods, production or processes unique to such manufacturer, seller, or distributor, or would otherwise

1 tend to affect adversely the competitive position of such manufacturer, seller, or 2 distributor.

Sec. 23. Citizen Suit. - For the purpose 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 willfully fails to comply with the provisions of this Act and its implementing rules and regulations; (b) The department or other implementing agencies concerning orders, 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 who abuses his or her authority in the performance of his or her duty; or who, in any manner, improperly performs his or her duties under this Act or its implementing rules and regulations; Provided, however, That no suit can be filed until after a thirty (30) day 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 statements 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. If the citizen should prevail, the court shall award reasonable attorney's fees, moral damages, and litigation costs as appropriate.

Sec. 24. Suits and Strategic Legal Action against Public Participation (SLAPP).

- Where a suit is brought against a person who filed an action as provided in Section 23 of this Act, or against any person, institution, or government agency that implements this Act or any other consumer-related laws, rules, and regulations, it shall 27 be the duty of the investigating prosecutor or the court, as the case may be, to immediately determine within not exceeding thirty (30) days from the filing of the suit whether said legal action has been filed to harass, vex, exert undue pressure, or stifle such legal recourses of the person complaining or enforcing the provisions of this Act. Upon determination thereof, evidence warranting the same, the court shall dismiss the case and award the attorney's fees and double damages.

This provision shall also apply and benefit public officers who are sued for acts 2 committed in their official capacity, there being no grave abuse of authority and done in the course of enforcing this Act, its rules, regulations, and guidelines.

Sec. 25. Appropriations. - The amount necessary for the effective

implementation of the provisions of this Act shall be taken from the current year's appropriation of the DENR. Thereafter, such sums as may be needed for the continued implementation of this Act shall be included in the annual General Appropriations Act.

Sec. 26. Congressional Oversight Committee. - The Joint Congressional

9 Oversight Committee created under Section 60 of Republic Act No. 9003 shall also 10 have the authority to monitor and evaluate the implementation of this Act.

Sec. 27. Implementing Rules and Regulations. - The NSWMC, DENR, in

coordination with the DTI, DILG, CCC, and the concerned government agencies and representatives of LGU organizations, shall issue the Implementing Rules and Regulations within one hundred (100) days after the effectivity of this Act.

Sec. 28. Construction. - The best interests of the consumer and the right to a

healthful and balanced ecology shall be considered in the construction and interpretation of this Act and its implementing rules and regulations.

Sec. 29. Separability Clause. - If any part or provision of this Act is held invalid

19 or unconstitutional, other provisions not affected thereby shall remain in force and 20 effect.

Sec. 30. Repealing Clause. - The provisions of any law, whether general or

special, rules and regulations, and other issuances or parts thereof which are inconsistent with this Act are hereby repealed, amended, or modified accordingly.

Sec. 31. Effectivity. - This Act shall take effect within fifteen (15) days after its

25 publication in at least two (2) newspapers of general circulation. Approved,