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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.
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No. of Firms |
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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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