Extended Producer Responsibility Act of 2022

Case Overview and Summary

Summary of Republic Act No. 11898 (Extended Producer Responsibility Act of 2022)

Policies and Definitions
- Declares the policy of institutionalizing the extended producer responsibility (EPR) mechanism as a practical approach to efficient waste management, focusing on waste reduction, recovery, recycling, and development of environment-friendly products that advocate sustainable consumption and production, circular economy, and producers' full responsibility throughout the product life cycle. (Section 2)
- Defines key terms such as circular economy, extended producer responsibility, high recyclability, high retrievability, importer, large enterprises, obliged enterprises, plastic, plastic neutrality, plastic packaging, product footprint, product producer, and sustainable consumption and production. (Section 3)

National Solid Waste Management Commission
- Adds a representative from the manufacturing industry, packaging industry, or obliged enterprises to the private sector members of the National Solid Waste Management Commission. (Section 4)

National Ecology Center
- Establishes the National Ecology Center (NEC) under the Commission to provide technical expertise, information, training, and networking services for the implementation of the Act. (Section 7)
- Mandates the NEC to maintain an EPR Registry, monitor and evaluate compliance of obliged enterprises and Producer Responsibility Organizations (PROs), develop and maintain a database, receive sampling and assessment reports, and provide an assessment on the volume or footprint of other generated wastes for priority inclusion in the EPR scheme. (Section 7)

Extended Producer Responsibility (EPR)
- Requires the Department of Environment and Natural Resources (DENR), in consultation with the National Solid Waste Management Commission (NSWMC), to formulate a national framework on EPR for all types of product wastes within three months, including reduction of non-environment friendly products and product waste recovery programs. (Section 44-A)
- Mandates obliged enterprises (large enterprises that generate plastic packaging waste) to establish or phase-in EPR programs for plastic packaging within six months, to achieve efficient management of plastic packaging waste, reduced production of low reusability/recyclability/retrievability plastic packaging, and plastic neutrality through efficient recovery and diversion schemes. (Section 44-B, 44-C, 44-D)
- Requires obliged enterprises or PROs to register their EPR programs with the NSWMC, providing information such as packaging materials covered, volume or weight of plastic packaging, targets for recovery, reuse, and recycling, and compliance status. (Section 44-E)
- Sets targets for the recovery of plastic product footprint generated during the preceding year, starting from 20% by December 31, 2023, and increasing to 80% by December 31, 2028 and every year thereafter. (Section 44-F)
- Mandates obliged enterprises or PROs to establish an auditing system and engage an independent third-party auditor to certify the veracity of reported plastic product footprint generation, recovery, and EPR program compliance. (Section 44-G)
- Allows obliged enterprises to form or authorize a PRO for implementing their EPR program, with the DENR establishing parameters for the PRO's organizational structure, membership requirements, duties and responsibilities, standards, reporting, verification, auditing, and data collection. (Section 44-H)

Incentives
- Provides rewards and recognitions for individuals, organizations, obliged enterprises, and PROs that have undertaken outstanding and innovative projects, technologies, processes, and activities in reuse, recycling, and reduction. (Section 45)
- Offers fiscal incentives, including tax incentives, deductibility of EPR expenses, and tax and duty exemption of donations, legacies, and gifts, for eligible activities related to solid waste management, recovery, and diversion of plastic product footprint. (Section 45)

Fines and Penalties
- Imposes fines ranging from ₱5,000,000 to ₱20,000,000, and potential suspension of business permit, for obliged enterprises that fail to register their EPR program or comply with the plastic packaging recovery targets. (Section 49)
- Authorizes the Pollution Adjudication Board of the DENR to hear and adjudicate cases of violations or offenses related to EPR compliance. (Section 49)

Mandatory Review and Appropriations
- Requires Congress to review the accomplishments, impact, and performance of the Act within five years, or as needed, to determine the necessity of remedial legislation for more stringent targets, higher incentives, or phase-out of certain types of single-use plastic packaging. (Section 9)
- Mandates the NEC to identify, review, and update the list of non-environmentally acceptable products and plastic packaging materials that shall be phased out within one year. (Section 9)
- Appropriates the necessary funds for the effective implementation of the Act, with obliged enterprises and PROs responsible for funding the operationalization and maintenance of their EPR programs. (Section 10)

Implementing Rules and Regulations
- Requires the DENR, in consultation with relevant agencies, obliged enterprises, and stakeholders, to formulate the implementing rules and regulations within 90 days from the effectivity of the Act. (Section 11)

Joint Congressional Oversight Committee
- Creates a Joint Congressional Oversight Committee to monitor the implementation of the Act and oversee the functions of the implementing agencies. (Section 12)

Separability Clause and Repealing Clause
- Includes standard separability and repealing clauses. (Sections 13 and 14)

Effectivity
- Specifies that the Act shall take effect 15 days after its complete publication in the Official Gazette or a newspaper of general circulation. (Section 15)