Acting DTI Secretary Thomas G. Aquino told reporters that the new law, which will take effect in January 2001, touches on issues that have not been settled even at the level of the World Trade Organization (WTO).
Thus, the government should take this as a cue to be more circumspect when implementing environmental laws that will inevitably affect investments and trade, Aquino said.
Some industries will find it difficult to comply but will they have to justify why they think it is difficult and the government will consider their concerns, Aquino said.
According to Aquino, the DTI has asked industry groups to detail what they consider as the most difficult provisions of the law and to propose how they plan to comply.
Under the law, industries are given three years to prepare for full compliance with emission standards. This, however, does not include power companies and motor vehicles which are required to comply immediately beginning next year.
The National Power Corp. (Napocor) as well as all independent power producers registered under the Board of Investments (BOI) will be the first to be required to comply with the provisions of the controversial law governing air pollution.
BOI Executive Director Elmer Hernandez said power companies will be required to ultimately phase out power generating plants that can no longer be outfitted to improve emissions. Hernandez said the Department of Energy has made its own line-up of power plants that will be phased out as well as the requirements for existing power plants that can still be upgraded.
"The biggest concern is the waste generated by industries," Hernandez said. "In the rules, as long as companies comply with emission standards, they would be allowed to use incinerators."
The DOE has commissioned the Asian Development Bank (ADB) to conduct a policy study that will provide the parameters for two contentious provisions since the law is very specific on the emission standards for industries, motor vehicles and stationary power sources.
The law has been criticized for having no flexibility as it pegs the standards against existing international emission standards that could change in the future and would require the amendment of the law in case an adjustment is warranted.
Some issues remain unresolved, such as the dispute over the ban on the use of incinerators, a provision that is viewed as unrealistic even by environment groups. Analysts point out that the ban is not accompanied by alternative waste disposal methods that may be considered acceptable. The option now under consideration is the possible export of the country’s industrial waste to the US and other developed countries with the facilities for disposal and possible recycling.
The ADB study, which is expected to be completed in 2001, will determine the cost of implementing the Clean Air Act in terms of incremental power and fuel costs resulting from the installation of more emission control and treatment facilities to reduce toxic emission.
The ADB has extended a $300-million loan to finance the Metro Manila Air Quality Improvement Sector Development Program focusing mainly on the enforcement of the Clean Air Act.
A major component of the package is a $200-million loan to support policy reforms to raise pollution standards for vehicles and industries and to strengthen the monitoring and enforcement capability of the institutions responsible for air quality management.
The loan also has a $25-million provision for the establishment of air pollution control facility, a fund which industries, commercial establishments and public transport companies can tap to buy and install equipment to reduce emissions.