Paulina Alarcón
On December 20, 2024, through Legislative Decree No. 186, the Special Law on Waste Collection, Utilization, and Final Disposal (the Law) was approved, to comprehensively regulate the management, collection, transport, utilization, and final disposal of waste at the national level, ensuring that these activities are carried out in accordance with the principles of sustainability, efficiency, and economic viability.
Utilization, and Final Disposal of Waste (“The Law”) was approved, to comprehensively regulate the management, collection, transfer, utilization, and final disposal of waste at the national level, ensuring that these activities are carried out in a sanitary and environmentally safe manner and under the principles of sustainability.
This Law created the National Solid Waste Authority (“ANDRES” or “The Authority”) as an autonomous public law institution with legal personality and its own assets, responsible for directing, coordinating, and supervising the comprehensive management of waste in the country. Its functions include:
- Issuing permits for waste collection, management, and generation companies.
- Supervising operations.
- Promoting the circular economy.
- Coordinating the National Plan for Comprehensive Waste Management.
- Establishing public policies.
- Issuing special technical regulations on the subject.
The creation of ANDRES involves a significant institutional reconfiguration, as it assumes—either entirely or complementarily—powers historically exercised by municipalities, particularly in the management, logistics, collection, use, and final disposal of waste. Likewise, the Law assigns to ANDRES the administrative functions related to environmental assessment and the issuance of permits for waste management activities, as well as the supervision of environmental compliance by authorized facilities and managers. Some of these powers, previously held by the Ministry of Environment and Natural Resources (“MARN”), are now exercised directly by the Authority, while maintaining the technical participation of MARN and ensuring inter-institutional coordination and the use of technical standards and environmental parameters established by MARN.
With this institutional transition, MARN’s powers in the areas of integrated waste management, recycling, regulation, management, issuance of authorizations, monitoring, evaluation, control, and sanctioning authority—derived from the Law on Integrated Waste Management and Recycling Promotion—were assumed by ANDRES. Consequently, MARN’s database and technical, human, and IT resources related to this matter have been transferred to the new Authority.
Within this framework, the provision of the Environment Law that referred to MARN for the issuance of permits to those who handle hazardous substances, waste, and debris now corresponds to ANDRES, in accordance with the technical requirements and procedures established by the Law. Similarly, concerning environmental assessment to estimate the environmental effects of works, activities, or projects, ANDRES must issue the corresponding regulations for its implementation.
Currently, to operate establishments that provide services related to waste management, such as collection centers or treatment facilities, it is necessary to obtain permits issued directly by ANDRES. For those already in operation, the provision of the law establishing that until this institution issues its own technical regulations and standards, the regulations previously issued under the Comprehensive Waste Management and Recycling Promotion Law, as well as the regulations on the introduction, transit, distribution, and storage of waste, shall remain in force in all matters not contrary to the Law, the regulations previously issued under the Law on Comprehensive Waste Management and Recycling Promotion, as well as the regulations on the introduction, transit, distribution, and storage of hazardous substances, with MARN being required to inform ANDRES of the authorizations granted in this area.
On the other hand, the Law empowers the director general to sign, in a complementary or substitute manner to the municipalities, the service contracts regulated by the Law. The municipalities, for their part, retain the obligation to comply with the contracts previously signed in this area, under the supervision of ANDRES.
In order to strengthen institutional functioning and facilitate the application of legal provisions, Legislative Decree No. 442 (“The Reform”) was published in the Official Gazette on October 31, aimed primarily at strengthening the financial and administrative powers of ANDRES and updating the regime of its Sanctions Tribunal.
Among the main changes that strengthen the institution’s asset structure, the incorporation of the power of the director general to approve public prices for the services offered by ANDRES, with the prior authorization of the Ministry of Finance, stands out. Likewise, the regulations relating to the Authority’s assets are modified to include within them the resources derived from the payment for the provision of its services and products.
The Law also creates the Special Activities Fund for Logistics and Execution of Waste Collection, Utilization, and Final Disposal (the “Special Fund” or “Fund”), whose resources—collected from the sources indicated in the Law—may, with the prior authorization of the Ministry of Finance, be used not only for ordinary waste management activities, but also to pledge, guarantee obligations, pay mortgages and loans, issue and place bonds on the market, and securitize assets.
In terms of sanctions, the reform introduces changes to the requirements for membership of the Sanctions Tribunal: the requirement to be a lawyer of the Republic is eliminated, except for the president and his or her alternate, and members and their alternates are required to be professionals with a university degree. In addition, it is established that both full and alternate members will be appointed by the President of the Republic.
Together, these reforms consolidate ANDRES as the national technical authority on waste management, providing it with greater financial, administrative, and regulatory capabilities to effectively fulfill its functions.
For any questions or to learn more from the Sustainability and Environment Team about how these changes may impact your business, your establishment, and your projects, please contact us at the following addresses: Camila Montoya (cmontoya@consortiumlegal.com) and Paulina Alarcón (palarcon@consortiumlegal.com).