Environmental User Fee System (EUFS)

 

 

Recognizing the critical need for water quality improvement and protection in view of the intended use of Laguna de Bay as major source of domestic water supply for Metropolitan Manila and the nearby provinces, the Laguna Lake Development Authority launched the Environmental Users Fee System to complement its existing regulatory program.

In January 1997, Laguna Lake Development Authority launched the Environmental User Fee System (EUFS), a pioneering water pollution charge system in the country. An integral part of LLDA's Environmental Management Program, EUFS is founded on Laguna de Bay Masterplan that emphasizes the use of economic incentives to address environmental problems and issues.

The system is a market-based instruments that encourages companies to invest in and operates pollution prevention and/or abatement systems within their establishment. Applying the "Polluter Pay Principle", the system effects direct accountability for damage inflicted on the integrity of Laguna de Bay Region thereby encouraging individuals and business establishments to internalize into their decision-making process the environmental impacts of their day-to-day activities.

 

The Environmental User Fee System (EUFS) covers all enterprises within the administrative jurisdiction of LLDA that discharge wastewater in the Laguna de Bay system. These include commercial/industrial establishments; agro-based industries/ establishments (such as swine farms and slaughterhouses); clustered dwellings (i.e. residential subdivisions); as well as domestic households. Currently, the EUFS for Households is still under development.

 

Under the EUFS, an enterprise is required to obtain a Discharge Permit, renewable annually, from LLDA. A Discharge Permit (DP) is a legal authorization for the enterprise to discharge wastewater into the tributary rivers within the Laguna de Bay Region. DPs are issued by LLDA only if the wastewater being discharged complies with the effluent standards of set under DENR Administrative Order 35.

 

The number of DP applications being filed with LLDA has been steadily increasing since the first year of the years implementation (see Figure 1.0) indicating the growing number of establishments determined to comply with the environmental standards of LLDA.

 

Figure 1.0

 

After a three-year introductory phase, the EUFS is now regularly implemented as one of LLDA's Flagship Programs. Revenues generated from the system's implementation help support LLDA's Environmental Management Program including Water Quality Monitoring; Shoreland Management; River Rehabilitation; Information, Education and Communication (IEC) Campaign; Outreach Programs, among others.

 

 

No. of Firms

 

BOD Loadings

 

The implementation of the EUFS resulted in the considerable reduction of BOD5 (Biological Oxygen Demand) loading from enterprises that were already covered by the system.

 

It is a fee that is paid for the amount of pollution that is discharged into the tributary rivers within the Laguna de Bay Region. It is composed of a fixed fee and a variable fee. The fixed fee covers the administrative cost implementing the Environmental Users Fee System and is based on the volume of wastewater that is discharged. The variable fee, on the other hand, is calculated with the reference to the BOD5 loading as well as to the volume and concentration of the wastewater being discharged.

 

TOTAL ANNUAL USER'S FEE

Fixed Fee + (Variable Rate * Total Annual BOD5 in kg.)

 

The Fixed Fee is based in the following:

 

Wastewater without Heavy Metals

Fee

Volume of Wastewater Discharge

P 18,000.00

> 150 cu. m. / day

P 12,000.00

Between 30 and 150 cu. m. / day

P 6,800.00

< 30 cu. m. / day

 

Wastewater with Heavy Metals

Fee

Volume of Wastewater Discharge

P 12,000.00

<= 150 cu. m. / day

P 18,000.00

> 150 cu. m. /day

 

The Variable Fee is based on the following:

  • P 5.00 per kilogram of total BOD5, when the BOD5 Concentration is <50mg/l.

  • P 30.00 per kilogram of total BOD5, when the BOD5 Concentration is >50mg/l.

Formula on getting the Total Amount of BOD5 in kilograms:

Total Annual BOD5 = CBODm * Qm * d * 10-3

Where:

CBODm

=

average concentration BOD5 (mg/l)

Qm

=

daily wastewater discharge (m3/day)

d

=

number of discharging days per day

10-3

=

conversation factor (m3/L/kg/mg)

 

 

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