On August 11, 2023, the Government submitted to legislative processing a bill that promotes the valorization of organic waste and strengthens waste management at the territorial level. The bill comprises 19 permanent articles and 8 transitory articles. According to the Message’s text, the proposed innovations aim to redesign the current municipal solid waste management scheme, including:

1. Introduction of obligations for source separation and provision of alternative management options for organic waste.
2. Financing of the collection, transportation, and disposal of household solid waste services.
3. Governance and planning instruments associated with waste management, with an emphasis on the valorization of organic waste.
4. Gradual implementation of obligations by groups of municipalities.

Additionally, the project seeks to modify other legislative bodies, such as: (i) Decree Law No. 2,385 on municipal revenues; (ii) Law No. 20,920 establishing the framework for waste management, extended producer responsibility, and promotion of recycling, known as the “REP Law”; and (iii) Decree Law No. 830, the Tax Code.
In general, the bill introduces the following obligations:

A. In light of the principle of economic-financial sustainability, it imposes the obligation for the municipal waste disposal fee to reflect the actual cost of service provision. B. Introduces payment based on waste generation, requiring municipalities to charge large generators based on the volume of organic waste they produce, offering incentives for waste prevention and valorization. C. Mandates municipalities to carry out source separation and valorize organic waste. D. Establishes obligations for regional governments, municipalities, generators, and managers of organic waste. E. Formalizes the Regional Executive Secretariats for Waste and Circular Economy.
Currently, the project is in its first constitutional processing stage in the Environmental and Natural Resources Committee of the Chamber of Deputies, where the voting on proposed amendments to the bill has commenced. Some of the presented amendments include:

• Imposing an obligation on waste managers to declare, through the Pollutant Release and Transfer Register, the type, quantity, costs, service fees, origin, treatment, and destination of waste.
• Proposing the inclusion of representatives from non-governmental organizations focused on environmental protection and associations of grassroots recyclers in the composition of the Regional Executive Secretariat for Waste and Circular Economy.
• In the local waste plan of municipalities, incorporating the participation of private actors and civil society in the process of separating organic household waste.
• Incorporating prohibitions and obligations for companies engaged in the manufacturing, production, importation, distribution, or commercialization of food products with annual revenues exceeding 25,000 UF.
• Implementing a National Policy that promotes the valorization of organic waste.
• For the implementation of the law, in relation to environmental education, proposing that the Ministry of the Environment have a Fund for the valorization of organic waste, formed by inheritances, legacies, and donations from any source; resources allocated for this purpose; funds assigned by other laws; and any contributions from public or private entities, domestic or foreign, for any purpose.

For additional information on this matter, please contact: Javier Naranjo, jnaranjo@jdf.cl; Martín Esser, messer@jdf.cl; María Paz Valenzuela, mpvalenzuela@jdf.cl.