WLW Day 1: Environmental User Fee System

8/3/2019 WLW Day 1: Environmental User Fee System

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LAGUNA LAKE DEVELOPMENT AUTHORITY

Env i r onmen ta l Regu la t i on Depar tm en t

ENVIRONMENTALUSER FEE SYSTEM



Distribution of Enterprises in the Laguna De Bay Watershed



ENVIRONMENTAL USER FEE SYSTEM

EUFS is a market-based instrument that applies the “polluters pay principle”

EUFS serves as an economic means to force polluters to reduce/abate water pollution while instituting remedial measures within their establishment

EUFS was initially implemented in the Laguna de Bay Region in 1997



ENVIRONMENTAL USER FEE SYSTEM

LLDA MODEL

EUFS

REGULATORYPD 984 DAO 35

MARKET BASED

INSTRUMENTRA 4850PD 813EO 927



EUFS COVERAGE

INTRO PHASE (1997) : Top 5 Polluting Industries beverages, food processing, pulp &

paper, piggeries/slaughterhouses & textiles

SECOND PHASE (1998-1999) : All industries with wastewater, subdivisions & com-

mercial estab. Incl. food chains & resto.

ONGOING IMPLEMENTATION : EUFS wasadopted as a long term EMP

Biochemical Oxygen Demand (BOD5)



Who are affected by this EUFS?

• All development projects, installations andactivities, including industrial, commercial,domestic and agricultural sources, that

discharge liquid waste and pose a threat tothe environment of Laguna de Bay

• Covers wet industries and even dry

industries with more than 212 employees orwhose septic tanks have a capacity of morethan 12 cu.m.



EUF = FIXED FEE + VARIABLE FEE*

*VARIABLE FEE = LOADING** x Rate

**LOADING = Q x BOD5 x days/yr x 0.001

THE USER FEE STRUCTURE



Fixed Fee - cost of compliance monitoring,analysis, etc.

Flowrate of Discharge Fixed Fee

Less than 30 cubic meters per day - P 8,000 More than 30 but less than 150

cubic meters per day - P16,000 More than 150 cubic meters per day - P24,000

Less than 150 cubic meters per day - P16,000 More than 150 cubic meters per day - P24,000

Conventional (no heavy metals)

Heavy Metals

ENVIRONMENTAL USER FEE STRUCTURE



Variable Fee – depend on the strength or

concentration of the discharge

Variable Fee Rate

Pollution case shall be filed against firms discharging wastewater exceeding the effluent standards prescribed at DENR Administrative Order No. 35

For com p ly ing w i th the E f fl uen t S tandards - P5 per kg BOD/ TSS

For non-com p ly ing w i th the E ff luen t

S t anda rd s - P30 per kg BOD/TSS

Charging parameter depends on industry category: either Biochemical Oxygen Demand (BOD) or Total

Suspended Solids (TSS)



VARIABLE FEE = Ln* x Rate

Formula for the Net Waste Load, Ln:

Ln (PPP) = [(Cf – Ca) (Qf x Nf)] x 0.001

Where:

Ln = Net Waste Load, kg/yrPPP = Priority Pollutant Parameter

Cf = ave. concentration of PPP in the effluent (mg/l)

Ca = ave. concentration of PPP in the abstracted water (mg/l)

Qf = ave. Daily Volumetric Flow Rate of the (final) effluent orwastewater discharged

Nf = Number of discharge days per year, days/year



However, ne t was te l oad sha l l be

l im i t ed t o i ndus t r y / e s t ab l i s hmen twho abs t r a c t wa te r f r om su r f a ce

w ate r . I f t he sou rce o f w a te r is fr om

groundwa te r o r wa te r supp l i e r s(d i s t r i c t o r serv i ce p rov iders ) , the

concen t ra t i on o f wa te r i n t ake sha l l

be as sumed as ze ro o r neg l i g i b l e

p r io r it y po l l u t an t pa ram ete r



Se lec t i on o f P r i o r i t y Po l l u tan t

Pa r am e te r ( PPP )TYPE OF WASTEWATER PPP (Charging

parameter)

industrial or commercial

wastewaters with high organic orbiodegradable materials

BOD5

wastewaters with high inorganic or

non- biodegradable materialsTSS

wastewater discharge with

combination of organic and

inorganic materials

BOD5



Legal authorization granted by LLDA todischarge liquid waste or wastewater of specified concentration and volume intothe sewer or any water body that directly

or eventually drains into the Laguna deBay for the specified period of time

Valid for 1 to 3 years, renewable notlater than 1 month prior to its expiration

DISCHARGE PERMIT



RESULTS

OFEUFS IMPLEMENTATION



DISCHARGE PERMIT ISSUANCES

323386

556659 651

720797

998

11231195

113011851187

154211

307

446356

502 507

614678

833 815

435

835

33

285

136

0

200

400

600

800

1000

1200

1400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

appliedissued

revalidated



BOD LOADING (MT/YR) OF INDUSTRIES/ESTABLISHMENTS WITHINLAGUNA DE BAY REGION

No. of

firms1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

221 5403.29 4102.39 1200.37 1240.51 940.60 202.02 195.18 193.26 240.29 204.10 209.50 163.54

254 4431.71 1515.78 1278.75 962.69 223.24 216.55 224.38 278.17 290.09 272.89 238.27

427 1790.03 1448.58 1062.13 281.93 264.34 264.48 340.96 338.97 343.14 342.96

623 2309.08 1371.29 488.32 381.10 353.40 444.87 492.54 516.56 513.83

731 1686.53 652.70 455.08 422.07 521.95 595.22 588.83 581.45

907 790.85 560.76 515.98 670.70 711.87 646.12 671.08

1065 827.55 583.53 727.16 779.79 712.93 698.37

1387 1585.62 1462.88 1700.11 1527.99 1434.78

1709 1828.68 2011.94 1758.70 1681.84

1943 2541.38 2388.42 1990.29

2183 5202.01 4235.97

2401 4319.60



BOD LOADINGS/YR

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Total loading

no. of firms

ave. BOD

loading/operating

firm



REGULATORY FLEXIBILTY

Less Frequency of Analysis & Submission of SMR Less compliance monitoring

REDUCED USER FEESLow volume of discharge, Low EUF Low BOD concentration, Low EUF

FIRM’S CONTINUOUS IMPROVEMENT

Pollution Prevention Waste minimization, reduction, recycling,

cleaner production Recognition through LLDA Public Disclosure

Program

EUF INCENTIVES


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WLW Day 1: Environmental User Fee System