Establishing a Compliance Establishing a Compliance Assistance Center in the Philippines:Assistance Center in the Philippines:

A Pilot ProjectA Pilot Projectfor the Laguna de Bay Regionfor the Laguna de Bay Region

Asian Environmental Compliance and Enforcement Network (AECEN) Regional Forum

Beijing, China

15 December 2007

Objectives of the PresentationObjectives of the Presentation Provide an overview of Laguna de Bay

Region, LLDA roles, and enforcement status of identified sectors

Discuss the CAC establishment process, overall plan, progress, and challenges/ responses

Discuss CAC structure, roles, website, staff, funding

Define the next steps towards/along implementation

Lessons learned and considerations for CAC establishment

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Laguna de Bay Region, PhilippinesLaguna de Bay Region, Philippines

POLICY AND PLANNINGPOLICY AND PLANNINGDevelop Lake with due regard to

environment and prevention of ecological imbalance

Conduct comprehensive survey/studiesPrepare comprehensive plan to conserve

and utilize resourcesExercise water rights within Laguna LakePrepare a water quality management programCoordinate policies with other government agencies and stockholders

REGULATORYREGULATORYEstablish and enforce water quality

standards for industrial, agricultural and municipal use

Issue and revoke permits for use of surface waters within the lake region

Approve development plans proposed by

LGUs, private persons or enterprises

Collect fees for use of Laguna Lake resources for all beneficial purposesCompel compliance

INFRASTRUCTURE ANDINFRASTRUCTURE ANDRESOURCES DEVELOPMENTRESOURCES DEVELOPMENT

Prepares and implement infrastructure projects such as river works, flood control and sewerage

Reclaim portions of the Lake Undertake re-adjustments, relocations or

resettlement of populationsFinance Infrastructure projectsCollect reasonable fees and toll chargesDevelop water supply from groundwater

or Lake water sourcesEngage in fish production and other

aquaculture projects

THREE KEY FUNCTIONSLLDA Core FunctionsLLDA Core Functions

Unprecedented economic growth over last 30 years brought rapidly expanding industrialization and urbanization in the region

Encroachment in the lake is prevalent causing intrusions of pollutants into the lake water.

Organic Waste Profile in the LakeOrganic Waste Profile in the Lake(As of 2004)(As of 2004)

Domestic77.9%

Industry11.5%

Agriculture9.8%

Forest0.8%

3 Waves of Pollution Control3 Waves of Pollution Control

Law

Enfo

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ent

Marke

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Instru

ments

Public Disclosure

3 Waves of Pollution Control 3 Waves of Pollution Control

Environmental regulation and market-based instruments have resulted to significant pollution loading reduction and encouraged investments in cost effective pollution control measures

Much is still to be desired in terms of environmental compliance among regulated sectors

Platform for LLDA’s AssistancePlatform for LLDA’s Assistance

LLDA Website (www.llda.gov.ph) Continuing Environmental Education Program Information, Education, and Communication

Program Annual Learning Forum Publication of the Laguna de Bay

Environment Monitor Quick Response Desk LLDA Hotline and TEXT LLDA

Consent agreement and phased-in Consent agreement and phased-in compliancecompliance

MOA with QSRs for a two-year phased-in compliance with interim BOD standards

Series of discussions with slaughterhouse operators, hog farms and gas station operators

Seminar for slaughterhouse operators

Need for Compliance AssistanceNeed for Compliance Assistance

Many LGUs & thousands of small and medium-scale businesses face regulatory challenges

Staff not specifically assigned to oversight of environmental obligations

Regulatory requirements continually change LLDA is constrained to provide on-site assistance to

regulated entities (legally and resource-wise ) Small and medium-scale businesses and LGUs do

not always receive environmental information targeted to their needs

Workshop on Developing Compliance Workshop on Developing Compliance Assistance CapabilitiesAssistance CapabilitiesAugust 2006, Bangkok, ThailandAugust 2006, Bangkok, Thailand

US-EPA’s expertise and experience in developing and running compliance assistance centersPresented by: Jim Edward, Division Director

Deborah Thomas, Acting Asso. Director Compliance Assistance & Sector Programs US-EPA

LLDA and PCD-Thailand agreed to move towards establishment of CACs for specific areas/ sectors

Generic Action PlanGeneric Action Plan

Formulate pilot’s logical framework of the CAC in relation to LLDA’s sustainable development goals and draw up concept design, center management (structure, staffing, funding, sustainability mechanisms), web-based platform

Draft policy/ legal instrument & operational guidelines for LLDA Board approval

Establish and pilot test the CACs Monitor and evaluate the CACs Recommend measures for CAC improvement Provide capacity building activities Develop the CA resources

Validate/ approve the selected sectors

as pilot CACs

Validate/ approve the selected sectors

as pilot CACs

Form work groups among stakeholders to facilitate discussion

and consensus and conduct meetings to report/ assess progress

Form work groups among stakeholders to facilitate discussion

and consensus and conduct meetings to report/ assess progress

List possible candidate CAC hosts and selection criteria

List possible candidate CAC hosts and selection criteria

Consultative meetings towards CAC design and process flow for establishment considering

existing models

Consultative meetings towards CAC design and process flow for establishment considering

existing models

Inception-Leveling Workshop Inception-Leveling Workshop with Targeted Sectorswith Targeted SectorsInternal Workshop among LLDA & AECEN Long/short lists and initial assessment of the

sectors that may be considered as pilot groups for the Project

criteria for selecting the pilot sub-sectors – impacts on human health and environment– patterns of non-compliance – impacts to small business

Inception-Leveling Workshop Inception-Leveling Workshop with Targeted Sectorswith Targeted Sectors

Held on March 30, 2007 with 4 potential sectors: fastfood chains, slaughterhouses, hog farms, & gasoline stations, with 35 participants – Discuss compliance status– Present concept of compliance assistance– Determine if compliance assistance can be a

strategic intervention – Level-off on the pilot CAC project– Define the next steps

Compliance Profiles of Compliance Profiles of Slaughterhouses & Hog FarmsSlaughterhouses & Hog Farms

Out of 68 slaughterhouses monitored by LLDA, less than 50% complied with permit requirements & effluent standards-43 LGU-owned, majority with pending pollution cases

Of 201 hog farms registered with LLDA, only 53 (26%) are compliant with environmental requirements

Findings/ Conclusions on the Findings/ Conclusions on the 4 Sectors4 Sectors

Compliance status indicative of prevailing conditions in other sectors in the lake region

Many enterprises covered by LLDA-EUFS are yet unable to comply with effluent standards, how much more with those not yet enlisted

Slaughterhouses & pig farms have more direct impact on environment & community welfare; majority have inability to comply with standards & regulations

Potential CAC hosts: industry associations, LGU, school, NMIS for slaughterhouses, NGO

CAC may not be a strategic intervention for fastfood industry and gas stations

Seminar-Workshops withSeminar-Workshops withPriority Sectors – May 29-30, 2007Priority Sectors – May 29-30, 2007

Intended to share lessons from USEPA on CAC models; share lessons from Taiwan from PROC-EPA and swine sector; discuss proposed CAC design; identify CAC resources, outreach activities, needs & next steps; establish international linkages

Participants from a range of industry federations, sector associations, pig farms owners/operators, private slaughterhouse operators, LGUs, relevant govt. agencies, LLDA,

Resource Speakers from: USEPA, Taiwan EPA, Taiwan Swine Raisers Association

Workshop with Hog RaisersWorkshop with Hog RaisersMay 29, 2007 ,The Vivere Suites, Alabang, May 29, 2007 ,The Vivere Suites, Alabang,

Muntinlupa City, 42 participantsMuntinlupa City, 42 participants

Workshop with Slaughterhouse Operators Workshop with Slaughterhouse Operators Eugenio Lopez Center, Antipolo City, May 30, 2007, Eugenio Lopez Center, Antipolo City, May 30, 2007,

45 participants45 participants

Key Agreements from the Key Agreements from the Workshops - SlaughterhousesWorkshops - Slaughterhouses

National Meat Inspection System (NMIS) as a potential host agency for slaughterhouse CAC (initially)

Eventually CAC to be mainstreamed into the industry association

Phase 1: Physical center

Phase 2: Couple CAC with website

MOA with CAC Host (NMIS)MOA with CAC Host (NMIS) Sets the CAC purpose Describes the policy environment within which the

LLDA and NMIS will jointly establish the CAC for slaughterhouses

Defines roles and responsibilities of, resource/cost sharing between LLDA and NMIS

Provides for joint monitoring and evaluation of the CAC Sets direction for moving forward from NMIS-to a

private sector-managed CAC; creation and operation of CACs for slaughterhouses outside Laguna de Bay Region

Key Roles and ResponsibilitiesKey Roles and ResponsibilitiesLLDALLDA NMISNMIS

Provide funding requirements for the CAC establishment thru AECEN/ECO-Asia

Provides information & other tools/ materials for the CAC/website

Assist the NMIS in CAC promotion Act professionally on matters

referred by the CAC Provide sustainability mechanisms

to ensure continuing/improved CAC operations

Assist NMIS in planning, training a private sector CAC host

Extend assistance to NMIS in mainstreaming CAC outside LdBR

Acts as host & manager of CAC Provide space, competent personnel,

counterpart resources, & other amenities for CAC

Sets up/ update CAC resources, coordinate with LLDA & other info sources

Prepare CAC logframe, manual of operations, annual plans

Administer the website Conduct info dissemination, CAC

promotions Act professionally on queries & requests

for assistance received thru CAC Jointly monitor & evaluate CAC

operations, prepare periodic reports Initiate/Adopt measures to sustain CAC, plan

for private sector turn-over

CAC Challenges – Hog FarmsCAC Challenges – Hog Farms

“Walk-in Forum” with LLDA on August 3, 2007. Timing of issuance of notices of violations prior to

and after the forum – “LLDA as the greatest fear factor among hog raisers

Clamor was for the LLDA to issue a moratorium to hog raisers on enforcement of the effluent standards while the CAC is being set up

Considering the issue on the moratorium is being linked to the hog farms’ willingness to support the CAC establishment, the efforts took a uphill climb

Key Agreements – Hog FarmersKey Agreements – Hog FarmersMeeting on November 5, 2007Meeting on November 5, 2007

CAC for hog farms will be established, to be co-hosted by Baras Business Council and United Broiler Raisers Association

Web-based CAC is the most efficient, coupled with print information materials, training, sharing of experience (technical options and funding opportunities), workshops, dialogues

LLDA will continue to enforce, even with CAC in place. But hog raisers, through the BBC, will move parallel but outside the CAC, its initiatives on moratorium and dialogues on other aspects.

Timetable – Slaughterhouses CACTimetable – Slaughterhouses CAC

Soft launching of CAC webpage-October 15 Data Gathering -November Production of leaflet/posters -on-going until Dec

‘09 IEC – tri-media -Oct – Dec ‘07 Dialogue with Operators -continuing Virtual Plant Tour -Jan ’08 – Dec ’09 Launching of the CAC -Jan ‘08

Timetable – Hog Farms CACTimetable – Hog Farms CAC

Development of website -November-December Meeting on draft MOA -November 14 Workshop on webpage -November 19

contents & Action plan Meeting to view and -December 3

comment on initial Website Set up of the web-based CAC -End of December 2007 Launching -January 2008

CAC StructureCAC Structure

Compliance Assistance Center for the Compliance Assistance Center for the Laguna de Bay Region – What It IsLaguna de Bay Region – What It Is

The CAC comprises of activities, tools or technical assistance which provide clear and consistent information for the regulated establishments to help them understand environmental regulations and be able to comply with their obligations under environmental

regulations. In effect, the operation of a compliance

assistance center is compliance promotion even as the environmental authorities continue to undertake their enforcement work.

Compliance Assistance Center for the Compliance Assistance Center for the Laguna de Bay Region – What It IsLaguna de Bay Region – What It Is

Salient features of the CAC are the use of web sites, plain-language guides, fact sheets, training, and on-site visits as tools of assistance.

Applicable environmental laws, regulations, standards, permitting system (including forms) can be found also in the CAC.

The Compliance Assistance Center shall have basic facilities, personnel and budget support for its operations.

Its personnel shall be trained on the rationale, objectives, tasks and mechanics of a compliance assistance Center

Information Materials for Compliance Information Materials for Compliance Assistance CenterAssistance Center

- Relevant Environmental Laws – Clean Water Act; Republic Act 4850; Executive Order 927

- Relevant Environmental Regulations and Standards – DENR Administrative Order No. 34 and 35; Relevant LLDA Resolutions, e.g., Board Res. No. 33, series of 1996 (Environmental User Fee); LLDA Memorandum Circular No. 2006-3, series of 2006 (Policies and Implementing Guidelines on the Disposal/Discharge of Wastewater Through Service Providers and for Other Purposes)

Information Materials for Compliance Information Materials for Compliance Assistance CenterAssistance Center

LLDA Forms (e.g., Self-Monitoring Reports)

Suggested Environment Improvement Technologies

Manuals on Good Housekeeping; Best Environmental

Management Practices; Good Manufacturing Practices

NMIS Rules and Regulations

NMIS Environmental Management Guidelines

Tasks to be DoneTasks to be Done

1. Briefing of CAC institution or host

2. Negotiation and Discussion on Terms of CAC, including counterpart contribution to the CAC

3. Training of CAC Staff

4. Provision of Support to CAC

5. Reproduction of Information Materials Informing the Slaughterhouse Operators and hog farms

6. Continuing Training of LLDA staff and host institutions on CAC operations

7. Continuing forum and seminars

8. Monitoring and Evaluation of the CAC by LLDA in collaboration with CAC hosts and AECEN

Sustainability MechanismsSustainability Mechanisms

LLDA Board’s approval of and issuance of Board Resolution ensures institutional commitment & provision of counterpart resources

Designation of a CAC Focal Point within the LLDA to provide direction, mobilize concerned divisions/personnel, lead formulation of guidelines & procedures for establishment, operation, monitoring and coordination of CACs

In the future, allocation of a certain percentage of the user fee collected from slaughterhouses & hog farms to support the CACs

Key Accomplishments & Key Accomplishments & Current StatusCurrent Status

Board Resolution No. 336, Series of 2007 approves the establishment of Compliance Assistance Centers to facilitate compliance with environmental laws, regulations and standards, confirms slaughterhouses and hog farms as the priority sectors for compliance assistance, and ensures sustainable source of financial support

Memorandum of Agreement between LLDA and NMIS Soft launching of the Slaughterhouse CAC Website

(www.slaughterhousecac-phil.org) Development of initial design & contents listing of hog

farms CAC Website (www.hogfarmscac-phil.org) Seminars, technical visits, study tours Firming up of action plans

Lessons Learned & Considerations Lessons Learned & Considerations in CAC Establishmentin CAC Establishment

Involving stakeholders early on in the process is a MUST

Identifying key partners (organizations & individuals) helps in facilitating the process

CAC processes should be clearly delineated from the agency’s regulatory functions

Clarifying and mutually agreeing on the role of the CAC in stakeholders’ advocacy of policy and compliance issues

Lessons Learned & Considerations Lessons Learned & Considerations in CAC Establishmentin CAC Establishment

Continuous dialogue with organizations involved should be pursued to level off on CAC goals and expectations

Promotion of CAC concept and functions within the agency helps in building consistent understanding and engaging management and dedicated staff to move the process forward

Having appropriate legal instruments should be pursued to ensure institutionalization of CAC

EndnotesEndnotes Operational CACs are part of a set of systems and

behavioral changes, both of the regulator and the regulated, that will eventually lead to improved and consistent compliance with laws, regulations and standards, creating a more acceptable image in the community, and improving overall environmental governance in the locality.

Finally, all this is expected to help improve the lake environmental quality and make it sustainable for the 10 million or so stakeholders.