September 26, 2002

ENVIRONMENTAL UPDATE

Re: Update on the Implementation of the Year 2000 Amendments to the Puerto Rico Waste Reduction and Recycling Act of 1992

On October 8, 2000, the Governor of the Commonwealth of Puerto Rico approved Act No. 411 (hereinafter "Act 411") to amend the Puerto Rico Waste Reduction and Recycling Act of 1992 (Act No. 70 of September 18, 1992) (hereinafter, AAct 70"). Pursuant to Act 70, the Commonwealth established the public policy for the management of solid waste, emphasizing on methods such as reduction, reuse, and recycling. Act 70 also authorized the Puerto Rico Solid Waste Authority (ASWA) to coordinate and develop with the different municipalities a Solid Waste Reduction and Recycling Program. The initial goal of Act 70 was to reduce and recover 35% the solid waste disposed throughout the island=s landfills by the year 1995. With the approval of Act 411, the Commonwealth extended the initial deadline from 1995 to 2006 to recover 35% of the solid wastes generated in Puerto Rico.

To meet this new goal, Act 411 imposed planning and reporting requirements on both the public and private sector. Pursuant to Act 411, all entities in the private sector, including educational institutions, retail stores, offices, manufacturing facilities and any other commercial, industrial or touristic entities employing more than 10 persons (even if part-time) whether operating for profit or non-profit purposes, are required to implement and file before the SWA a Recycling Plan providing for the reduction and separation of the recyclable solid wastes generated at the institution. This past summer, the SWA generated a form for the preparation of recycling plans that requires general and technical information about the operation and recycling, reuse and/or reclamation activities. Act 411 also provides stringent planning and reporting requirements on municipalities, Commonwealth agencies, and public corporations that will entail the allocation and use of substantial resources from each institution.

Failure to submit the Recycling Plan to the SWA before the deadline could result in the imposition of fines ranging from $100.00 to $500.00 per violation or even imprisonment for a period of less than 6 months unless a request for additional time has been filed before the SWA. The statutory deadline for filing the recycling plan was initially set for July 1st, 2001. However, according to representatives of the SWA due to the impossibility of complying with such deadline and in order to provide the public additional information and clarification on the specific requirements of such plans, the SWA will not initiate any enforcement and compliance assurance activities until July 1st, 2003. It has yet to be determined whether the SWA´s position on the enforcement of the statutory deadline may preclude the filing of private rights of action or citizen suits against entities in non-compliance.

If you have any questions regarding this update or would like to obtain more information, please contact any of our environmental law attorneys at (787)751-8999 or at the following direct numbers or e-mails:

Carlos E. Colón-Franceschi (787)751-8999 ext. 27 ccf@tcmrslaw.com
Rafael Mullet-Sánchez A ext. 44 rem@tcmrslaw.com
Rafael Rivera-Yankovich A ext. 34 rryanko@tcmrslaw.com
Michelle Renaud-Jiménez
A ext. 29 mrenaud@tcmrslaw.com