ENVI

CASES:

2. Laguna Lake Development Authority vs. Court of Appeals

G.R.zo. 120865-71 December 7, 1995

1. Pollution Adjudication Board vs. CA et al.

G.R. No. 93891, 11 March 1991
Third Division, Feliciano (J), 4 concur
FACTS: Respondent, Solar Textile Finishing Corporation was involved in bleaching, rinsing and
dyeing textiles with wastewater being directly discharged into a canal leading to the adjacent
Tullahan- Tinerejos River. Petitioner Board, an agency of the Government charged with the task of
determining whether the effluents of a particular industrial establishment comply with or violate
applicable anti-pollution statutory and regulatory provisions, have been remarkably forbearing in its
efforts to enforce the applicable standards vis-a-vis Solar. Solar, on the other hand, seemed very
casual about its continued discharge of untreated, pollutive effluents into the river. Petitioner Board
issued an ex parte Order directing Solar immediately to cease and desist from utilizing its
wastewater pollution source installations. Solar, however, with preliminary injunction against the
Board, went to the Regional Trial Court on petition for certiorari, but it was dismissed upon two (2)
grounds, i.e., that appeal and not certiorari from the questioned Order of the Board as well as the
Writ of Execution was the proper remedy, and that the Board's subsequent Order allowing Solar to
operate temporarily had rendered Solar's petition moot and academic. Dissatisfied, Solar went on
appeal to the Court of Appeals, which reversed the Order of dismissal of the trial court and
remanded the case to that court for further proceedings. In addition, the Court of Appeals declared
the Writ of Execution null and void. At the same time, the CA said that certiorari was a proper
remedy since the Orders of petitioner Board may result in great and irreparable injury to Solar; and
that while the case might be moot and academic, "larger issues" demanded that the question of
due process be settled. Petitioner Board moved for reconsideration, without success.
Arguing that that the ex parte Order and the Writ of Execution were issued in accordance with law
and were not violative of the requirements of due process; and the ex parte Order and the Writ of
Execution are not the proper subjects of a petition for certiorari, Oscar A. Pascua and Charemon
Clio L. Borre for petitioner asked the Supreme Court to review the Decision and Resolution
promulgated by the Court of Appeals entitled "Solar Textile Finishing Corporation v. Pollution
Adjudication Board," which reversed an order of the Regional Trial Court. In addition, petitioner
Board claims that under P.D. No. 984, Section 7(a), it has legal authority to issue ex parte orders
to suspend the operations of an establishment when there is prima facie evidence that such
establishment is discharging effluents or wastewater, the pollution level of which exceeds the
maximum permissible standards set by the NPCC (now, the Board). Petitioner Board contends that
the reports before it concerning the effluent discharges of Solar into the River provided prima facie
evidence of violation by Solar of Section 5 of the 1982 Effluent Code. Solar, on the other hand,
contends that under the Board's own rules and regulations, an ex parte order may issue only if the
effluents discharged pose an "immediate threat to life, public health, safety or welfare, or to animal
and plant life." In the instant case, according to Solar, the inspection reports before the Board
made no finding that Solar's wastewater discharged posed such a threat.

Facts: The Laguna Lake Development Authority (LLDA) was created through RA No. 4850 in
order to execute the policy towards environmental protection and sustainable development so as
to accelerate the development and balanced growth of the Laguna Lake area and the surrounding
provinces and towns. PD No. 813 amended certain sections of RA 4850 since water quality
studies have shown that the lake will deteriorate further if steps are not taken to check the
same. EO 927 further defined and enlarged the functions and powers of the LLDA and
enumerated the towns, cities and provinces encompassed by the term Laguna de Bay
Region. Upon implementation of RA 7160 (Local Government Code of 1991), the municipalities
assumed exclusive jurisdiction & authority to issue fishing privileges within their municipal waters
since Sec.149 thereof provides: Municipal corporations shall have the authority to grant fishery
privileges in the municipal waters and impose rental fees or charges therefore Big fishpen
operators took advantage of the occasion to establish fishpens & fish cages to the consternation of
the LLDA. The implementation of separate independent policies in fish cages & fish pen operation
and the indiscriminate grant of fishpen permits by the lakeshore municipalities have saturated the
lake with fishpens, thereby aggravating the current environmental problems and ecological stress
of Laguna Lake. The LLDA then served notice to the general public that (1) fishpens, cages &
other aqua-culture structures unregistered with the LLDA as of March 31, 1993 are declared illegal;
(2) those declared illegal shall be subject to demolition by the Presidential Task Force for Illegal
Fishpen and Illegal Fishing; and (3) owners of those declared illegal shall be criminally charged
with violation of Sec.39-A of RA 4850 as amended by PD 813. A month later, the LLDA sent
notices advising the owners of the illegally constructed fishpens, fishcages and other aqua-culture
structures advising them to dismantle their respective structures otherwise demolition shall be
effected.

Issues: 1.Which agency of the government the LLDA or the towns and municipalities
comprising the region should exercise jurisdiction over the Laguna lake and its environs insofar
as the issuance of permits for fishery privileges is concerned? 2. Whether the LLDA is a quasijudicial agency?

Held: 1. Sec.4(k) of the charter of the LLDA, RA 4850, the provisions of PD 813,and Sec.2 of EO
No.927, specifically provide that the LLDA shall have exclusive jurisdiction to issue permits for the
use of all surface water for any projects or activities in or affecting the said region. On the other
hand, RA 7160 has granted to the municipalities the exclusive authority to grant fishery privileges
on municipal waters. The provisions of RA 7160 do not necessarily repeal the laws creating
the LLDA and granting the latter water rights authority over Laguna de Bay and the lake region.

ISSUE: Whether or not the Court of Appeals erred in reversing the trial court on the ground that
Solar had been denied due process by the Board.
HELD: The Court found that the Order and Writ of Execution were entirely within the lawful
authority of petitioner Board. Ex parte cease and desist orders are permitted by law and
regulations in situations like here. The relevant pollution control statute and implementing
regulations were enacted and promulgated in the exercise of that pervasive, sovereign power to
protect the safety, health, and general welfare and comfort of the public, as well as the protection
of plant and animal life, commonly designated as the police power. It is a constitutional
commonplace that the ordinary requirements of procedural due process yield to the necessities of
protecting vital public interests like those here involved, through the exercise of police power.
Hence, the trial court did not err when it dismissed Solar's petition for certiorari. It follows that the
proper remedy was an appeal from the trial court to the Court of Appeals, as Solar did in fact
appeal. The Court gave due course on the Petition for Review and the Decision of the Court of
Appeals and its Resolution were set aside. The Order of petitioner Board and the Writ of
Execution, as well as the decision of the trial court were reinstated, without prejudice to the right of
Solar to contest the correctness of the basis of the Board's Order and Writ of Execution at a public
hearing before the Board.

Where there is a conflict between a general law and a special statute, latter should prevail
since it evinces the legislative intent more clearly than the general statute. The special law is
to be taken as an exception to the general law in the absence of special circumstances forcing a
contrary conclusion. Implied repeals are not favored and, as much as possible, effect must be
given to all enactments of the legislature. A special law cannot be repealed, amended or
altered by a subsequent general law by mere implication.

The power of LGUs to issue fishing privileges was granted for revenue purposes. On the other
hand, the power of the LLDA to grant permits for fishpens, fish cages, and other aqua-culture
structures is for the purpose of effectively regulating & monitoring activities in the Laguna de Bay
region and for lake control and management. It partakes of the nature of police power which is
the most pervasive, least limitable and most demanding of all state powers including the
power of taxation. Accordingly, the charter of the LLDA which embodies a valid exercise of police
power should prevail over the LGC of 1991 on matters affecting Laguna de Bay.

2. The LLDA has express powers as a regulatory and quasi-judicial body in respect to pollution
cases with authority to issue a cease and desist order and on matters affecting the construction
of illegal fishpens, fish cages and other aqua-culture structures in Laguna de Bay.

Sec.149 of RA 7160 has not repealed the provisions of the charter of the LLDA, RA 4850, as
amended. Thus, the LLDA has the exclusive jurisdiction to issue permits for enjoyment of fishery
privileges in Laguna de Bay to the exclusion of municipalities situated therein and the authority to
exercise such powers as are by its charter vested on it.
Tano v Socrates (Environmental Law)
3. Tano v Socrates
GR No. 110249
August 21, 1997
FACTS:
The Sangguniang Panlungsod ng Puerto Princesa City enacted Ordinance N o. 1592 which took effect on January 1, 1993 entitled: "AN ORDINANCE BANNING THE SHIP
MENT OF ALL
LIVE FISH AND LOBSTER OUTSIDE PUERTO PRINCESA CITY FROM JANUARY 1, 199
3 TO JANUARY 1, 1998 AND PROVIDING EXEMPTIONS, PENALTIES AND FOR OTHER
PURPOSES THEREOF.

under Sections 149, 447 (a) (1) (vi), 458 (a) (1) (vi) and 468 (a) (1) (vi), which unquestionably
involve the exercise of police power, the validity of the questioned Ordinances cannot be
doubted.
Both Ordinances have two principal objectives or purposes:
(1) to establish a closed season for the species of fish or aquatic animals covered therein for a
period of five years, and
(2) to protect the corals of the marine waters of the City of Puerto Princesa and the Province of
Palawan from further destruction due to illegal fishing activities. It is incorrect to say that the
challenged Ordinance of the City of Puerto Princesa is invalid or unenforceable because it was not
approved by the Secretary of the DENR. If at all, the approval that should be sought would be that
of the Secretary of the Department of Agriculture (not DENR) of municipal ordinances affecting
fishing and fisheries in municipal waters. In closing, we commend the Sangguniang Panlungsod of
the City of Puerto Princesa and Sangguniang Panlalawigan of the Province of Palawan for
exercising the requisite political will to enact urgently needed legislation to protect and enhance the
marine environment, thereby sharing In the herculean task of arresting the tide of ecological
destruction. We hope that other local government units shall now be roused from their lethargy and
adopt a more vigilant stand in the battle against the decimation of our legacy to future generations.
At this time, the repercussions of any further delay in their response may prove disastrous, if not,
irreversible.

4. RP v City of Davao (Environmental Law)

ISSUE:
Is the ordinance valid and constitutional?

Republic of the Philippines v City of Davao

GR No. 148622
September 12, 2002

APPLICABLE LAWS:
FACTS:
Section 2 of Article X I I reads: The State shall protect the nation'
s marine wealth in its archipelagic waters, territorial sea, and exclusive economic z one, and
reserve its use and enjoyment exclusively to Filipino citizens. The Congress may, by law
, allow small-scale utilization of natural resources by Filipino citizens, as w ell as
cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, la
kes, bays, and lagoons.
Sections 2 and 7 of Article XIII provide: Sec. 2. The promotion of social justice shall include
the commitment to create economic opportunities based on freedom of initiative and self-reliance.
x x x x x x x x x Sec. 7. The State shall protect the rights of subsistence fishermen, especially of
local communities, to the preferential use of the communal marine and
fishing resources, both inland and offshore. It shall provide support to such fishermen through
appropriate technology and research, adequate financial, production, and marketing assistance,
and other services. The State shall also protect, develop, and conserve such
resources. The protection shall ex tend to offshore fishing grounds of subsistence
fishermen against foreign intrusion. Fishworkers shall receive a just share from their labor i
n the utilization of marine and fishing resources.
General Welfare Clause, expressly mentions this right:
SEC. 16. General Welfare.-- Every local government unit shall exercise the powers expressly
granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or
incidental for its efficient and effective governance, and those which are essential to the promotion
of the general welfare. Within their respective territorial jurisdictions, local government units shall
ensure and support, among other things, the preservation and enrichment of culture, promote
health and safety, enhance the right of the people to a balanced ecology, encourage and support
the development of appropriate and self-reliant scientific and technological capabilities, improve
public morals, enhance economic prosperity and social justice, promote full employment among
their residents, maintain peace and order, and preserve the comfort and convenience of their
inhabitants. (underscoring supplied).
RULING:
YES. In light then of the principles of decentralization and devolution enshrined in the LGC and the
powers granted to local government units under Section 16 (the General Welfare Clause), and

On August 11, 2000, The City of Davao filed an application for a Certificate of Non- Coverage
(CNC) for its proposed project, the Davao City Artica Sports Dome, with the Environmental
Management Bureau (EMB), Region XI.
ISSUES:
(1) Is an LGU like Davao exempt from the coverage of PD 1586?
(2) Is the project entitled to a Certificate of Non-Coverage (CNC)?
APPLICABLE LAWS:
Section 15 of Republic Act 7160,[5] otherwise known as the Local Government Code, defines a
local government unit as a body politic and corporate endowed with powers to be exercised by it in
conformity with law.
Section 4 of PD 1586 clearly states that no person, partnership or corporation shall undertake or
operate any such declared environmentally critical project or area without first securing an
Environmental Compliance certificate issued by the President or his duly authorized representative
RULING:
(1) NO, IT IS WITHIN THE COVERAGE OF PD 1586. Found in Section 16 of the Local
Government Code is the duty of the LGUs to promote the people's right to a balanced ecology.
Pursuant to this, an LGU, like the City of Davao, cannot claim exemption from the coverage of PD
1586. As a body politic endowed with governmental functions, an LGU has the duty to ensure the
quality of the environment, which is the very same objective of PD 1586.
(2) YES. The Artica Sports Dome in Langub does not come close to any of the projects or areas
enumerated above. Neither is it analogous to any of them. It is clear, therefore, that the said
project is not classified as environmentally critical, or within an environmentally critical
area. Consequently, the DENR has no choice but to issue the Certificate of Non- Coverage. It
becomes its ministerial duty, the performance of which can be compelled by writ of mandamus,
such as that issued by the trial court in the case at bar.

LAWS:
REPUBLIC ACT NO. 4850 July 18, 1966
AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY, PRESCRIBING ITS
POWERS, FUNCTIONS AND DUTIES, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.
CHAPTER I
DECLARATION OF POLICY AND CREATION OF AUTHORITY
Sec. 1. Declaration of Policy. It is hereby declared to be the national policy to promote, and
accelerate the development and balanced growth of the Laguna Lake area and the surrounding
provinces, cities and towns hereinafter referred to as the region, within the context of the national
and regional plans and policies for social and economic development and to carry out the
development of the Laguna Lake region with due regard and adequate provisions for
environmental management and control, preservation of the quality of human life and ecological
systems, and the prevention of undue ecological disturbances, deterioration and pollution.
Sec. 2. Laguna Lake Development Authority created. For the purpose of carrying out and effecting
the declared policy, as provided for in Section one hereof, there is hereby created a body
corporate to be known as the Laguna Lake Development Authority, hereinafter referred to as the
Authority, which shall be organized within one hundred twenty (120) days after the approval of this
Act. The Authority shall execute the powers and functions herein vested and conferred upon it in
such a manner as will, in its judgment, aid to the fullest possible extent in carrying out the aims and
purposes set forth below. This Act may be known as the Laguna Lake Development Authority Act
of 1966.
Sec. 3. Location of principal office. The Authority shall maintain its principal office at a convenient
place within the region, but it may have branch offices in such other places as are necessary for
the proper conduct of its business.
Sec. 4. Special Powers and Functions. The Authority shall exercise perform the following powers
and functions:
(a) To make a comprehensive survey of the physical and natural resources and potentialities of the
Laguna Lake region particularly its social and economic conditions, hydrologic characteristics,
power potentials, scenic and tourist spots, regional problems, and on the basis thereof, to draft a
comprehensive and detailed plan designed to conserve and utilize optimally the resources within
the region particularly Laguna de Bay to promote the region's rapid social and economic
development and upon approval by the National Economic and Development Authority (NEDA)
Board of such plan, to implement the same including projects in line with said plan: Provided, That
implementation of all fisheries plans and programs of the authority shall require prior consensus of
the Bureau of Fisheries and Aquatic Resources to ensure that such plans and programs are
consistent with the national fisheries plans and programs. For the purpose of said survey, public
agencies shall submit and private entities shall provide necessary data except such data which
under existing laws are deemed inviolable.
(b) To provide the machinery for extending the necessary planning, management and technical
assistance to prospective and existing investors in the region;
(c) To make recommendation to the proper agencies on the peso or dollar financing, technical
support, physical assistance and, generally, the level of priority to be accorded agricultural,
industrial and commercial projects, soliciting or requiring direct help from or through the
government or any of its instrumentalities;

(d) To pass upon and approve or disapprove all plans, programs, and projects proposed by local
government offices/agencies within the region, public corporations, and private persons or
enterprises where such plans, programs and/or projects are related to those of the Authority for the
development of the region as envisioned in this Act. The Authority shall issue the necessary
clearance for approved proposed plans, programs, and projects within thirty days from submission
thereof unless the proposals are not in consonance with those of the Authority or that those will
contribute to the unmanageable pollution of the LagunSection 7. Inter-Agency Technical Advisory
Council.
Secretary of Foreign Affairs Member
Secretary of Labor and Employment Member Secretary of Finance Member
Secretary of Agriculture Member
Representative from a non-governmental organization on health and safety Member
The representative from the non-governmental organization shall be appointed by the President for
a term of three (3) years.
The Council shall have the following functions:
a) To assist the Department of Environment and Natural Resources in the formulation of the
pertinent rules and regulations for the effective implementation of this Act;
b) To assist the Department of Environment and Natural Resources in the preparation and
updating of the inventory of chemical substances and mixtures that fall within the coverage of this
Act;
c) To conduct preliminary evaluation of the characteristics of chemical substances and mixtures to
determine their toxicity
and effects on health and the environment and make the necessary recommendations to the
Department of Environment and Natural Resources; and
d) To perform such other functions as the Secretary of Environment and Natural Resources may,
from time to time, require.
Section 8. Pre-Manufacture and Pre-Importation Requirements. Before any new chemical
substance or mixture can be manufactured,
processed or imported for the first time as determined by the Department of Environment and
Natural Resources, the manufacturer, processor or importer shall submit the following information:
the name of the chemical substance or mixture; its chemical identity and molecular structure;
proposed categories of use; an estimate of the amount to be manufactured, processed or
imported; processing and disposal thereof; and any test data related to health and environmental
effects which the manufacturer, processor or importer has.
Section 9. Chemicals Subject to Testing. Testing shall be required in all cases where:
a) There is a reason to believe that the chemical substances or mixture may present an
unreasonable risk to health or the environment or there may be substantial human or
environmental exposure thereto;
b) There are insufficient data and experience for determining or predicting the health and
environmental effects of the chemical substance or mixture; and
c) The testing of the chemical substance or mixture is necessary to develop such data.
The manufacturers, processors or importers shall shoulder the costs of testing the chemical
substance or mixture that will be manufactured, processed, or imported.
Section 11. Chemical Substances Exempt from Pre-Manufacture Notification.
a Lake waters or will bring about the ecological imbalance of the region: Provided, further, That the
Authority is hereby empowered to institute necessary legal proceeding against any person who
shall commence to implement or continue implementation of any project, plan or program within
the Laguna de Bay region without previous clearance from the Authority: Provided, furthermore,
That any local government office, agency, public corporation, private person, or enterprise whose
plans, programs and/or projects have been disapproved by the Authority may appeal the decision
of the Authority to the NEDA within fifteen (15) days from receipt of such disapproval whose
decision on the matter shall be final. Reasonable processing fees as may be fixed by the
Authority's Board of Directors shall be collected by the Authority for the processing of such plans,
programs and/or projects: Provided, finally, The expansion plans shall be considered as new plans
subject to review of the Authority and to payment of the processing fees.
The Authority and national and local government offices, agencies and public corporations shall
coordinate their plans, programs, projects and licensing procedures with respect to the Laguna
Lake region for the purpose of drawing up a Laguna Lake development plan which shall be binding
upon all parties concerned upon approval of the NEDA board.
(e) To engage in agriculture, industry, commerce, or other activities within the region which may be
necessary or directly contributory to the socio-economic development of the region, and, for this

purposes, whether by itself or in cooperation with private persons or entities, to organize, finance,
invest in, and operate subsidiary corporations: Provided, That the Authority shall engage only,
unless public interest requires otherwise, in those activities as are in the nature of new ventures or
are clearly beyond the scope, capacity, or interest or private enterprises due to consideration of
geography, technical or capital requirements, returns on investment, and risk;
(f) To plan, program finance/or undertake infrastructure projects such as river, flood and tidal
control works, waste water and sewerage works, water supply, roads, portworks, irrigation,
housing and related works, when so required within the context of its development plans and
programs including the readjustment, relocation or settlement of population within the region as
may be necessary and beneficial by the Authority: Provided, That should any project be financed
wholly or in part by the Authority, it is hereby authorized to collect reasonable fees and tolls as may
be fixed by its Board of Directors subject to the approval of the NEDA Board from users and/or
beneficiaries thereof to recover costs of construction, operation and maintenance of the projects:
Provided, further, That if the Authority should find it necessary to undertake such infrastructure
projects which are classified, as social overhead capital projects as determined by the NEDA, the
Authority shall be authorized to receive financial assistance from the government in such amount
as may be necessary to carry out the said projects subject to such terms and condition that may be
imposed by the government, upon recommendation of the NEDA Board: Provided, finally, That
such amount as may be necessary for the purpose is hereby authorized to be appropriated out of
the funds of the National Treasury not otherwise appropriated.
(g) To make an annual report to the stockholders regarding the operation of the Authority more
particularly a statement of its financial conditions, activities undertaken, progress of projects and
programs and plans of actions for the incoming years: Provided, however, That a majority of the
stockholders may require the Authority to submit report or reports other than the annual report
herein required, which report must be submitted within a period of thirty (30) days from notice
thereof;
(h) To lend or facilitate the extension of financial assistance and/or act as surety or guarantor to
worthwhile agricultural, industrial and commercial enterprises;
(i) To reclaim or cause to the reclaimed portions of the Lake or undertake reclamation projects
and/or acquire such bodies of land from the lake which may be necessary to accomplish the aims
and purposes of the Authority subject to the approval of the NEDA Board: Provided, That the land
so reclaimed shall be the property of the Authority and title thereto shall be vested in the Authority:
Provided, further, That the resulting lake shore shall continue to be owned by the national
government.
(j) The provisions of existing laws to the contrary notwithstanding, to engage in fish production and
other aqua-culture projects in Laguna de Bay and other bodies of water within its jurisdiction and in
pursuance thereof to conduct studies and make experiments, whenever necessary, with the
collaboration and assistance of the Bureau of Fisheries and Aquatic Resources, with the end in
view of improving present techniques and practice. Provided, That until modified, altered or
amended by the procedure provided in the following sub-paragraph, the present laws, rules and
permits or authorizations remain in force;
(k) For the purpose of effectively regulating and monitoring activities in Laguna de Bay, the
Authority shall have exclusive jurisdiction to issue new permit for the use of the lake waters for any
projects or activities in or affecting the said lake including navigation, construction, and operation of
fishpens, fish enclosures, fish corrals and the like, and to impose necessary safeguards for lake
quality control and management and to collect necessary fees for said activities and projects:
Provided, That the fees collected for fisheries may be shared between the Authority and other
government agencies and political sub-divisions in such proportion as may be determined by the
President of the Philippine upon recommendation of the Authority's Board: Provided, further, That
the Authority's Board may determine new areas of fisheries development or activities which it may
place under the supervision of the Bureau of Fisheries and Aquatic taking into account the overall
development plans and programs for Laguna de Bay and related bodies of water: Provided, finally,
That the Authority shall subject to the approval of the President of the Philippines promulgate such
rules and regulations which shall govern fisheries development activities in Laguna de Bay which
shall take into consideration among others the following: socioeconomic amelioration of bonafide

resident fisherman whether individually or collectively in the form of cooperatives, lakeshore town
development, a master plan for fishpen construction and operation, communal fishing ground for
lakeshore town residents, and preference to lakeshore town residents in hiring laborers for fishery
projects.
(l) To require the cities and municipalities embraced within the region to pass appropriate zoning
ordinances and other regulatory measures necessary to carry out the objectives of the Authority
and enforce the same with the assistance of the Authority.
(m) The provisions of existing laws to the contrary notwithstanding, to exercise water rights over
public waters within the Laguna de Bay region whenever necessary to carry out the Authority's
projects;
(n) To act in coordination with existing governmental agencies in establishing water quality
standards for industrial, agricultural and municipal waste discharges into the lake and to cooperate
with said existing agencies of the government of the Philippines in enforcing such standards, or to
separately pursue enforcement and penalty actions as provided for in Section 4(d) and Section 39A of this Act: Provided, That in case of conflict on the appropriate water quality standard to be
enforced such conflict shall be resolved thru the NEDA Board;
(o) To develop water supply from ground and/or lake water resources for municipal, agricultural
and industrial usages, in coordination with the National Water Resources Council created by
Presidential Decree No. 424 dated March 28, 1974 or its successors in interests, and to enter into
agreements with municipalities, governmental agencies and corporations and the private sector to
supply, distribute and market such water;
(p) Undertake studies on the improvement and maintenance of the desirable lake water quality of
Laguna de Bay, and in pursuance thereof, prepare a water quality management program on a
continuing basis, subject to the approval of the NEDA, which the Authority shall carry out with the
assistance and support of all national and local government units involved in water quality
management.
Sec. 4-A. Compensation for damages to the water and aquatic resources of Laguna de Bay and its
tributaries resulting from failure to meet established water and effluent quality standards or from
such other wrongful act or omission of a person, private or public, juridical or otherwise, punishable
under the law shall be awarded to the Authority to be earmarked for water quality control and
management.
Sec. 4-B. The Authority is hereby empowered to collect annual fees as provided for in Sec. 4-J
herein, for the use of the lake waters and its tributaries for all beneficial purposes including
recreation, municipal, industrial, agricultural, fisheries, navigation and waste disposal purposes. All
the fees so collected shall be used for the management and development of the lake and its
watershed areas: Provided, That the rates of the fees to be collected shall be subject to the
approval of the President of the Philippines.
CHAPTER III
CORPORATE POWERS
Sec. 5. The powers of the Authority. The Authority shall have the following powers and functions:
a) To succeed on its corporate name;
b) To sue and be sued in such corporate name;
c) To adopt, alter and use a corporate seal;

d) To adopt, amend, and repeals its by-laws;

e) To enter into contracts of any kind and description, to enable it to carry out its purposes and
functions under this Act;
f) To acquire, buy, purchase, hold or lease, such personal and real property as it deems necessary
or convenient in the transaction of its business and/or in relation with carrying out its purposes
under this Act; and to lease, mortgage, sell, alienate, or otherwise encumber, utilize, exploit or
dispose any such personal and real property held by it, subject to prior or existing individual or
communal right of private parties or of the government or any agency or enterprise thereof.
g) To exercise the right of eminent domain whenever the Authority deems it necessary for the
attainment of the objectives of the Authority under this Act;
h) To borrow funds from any local or foreign financial institutions independent of the bonds it may
issue or may continue to issue, to carry out the purposes of this Authority under this Act;
i) To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the shares of the capital
stock of, or any bond, securities, or other evidence of indebtedness created by any other
corporation, co-partnership, or government agencies or instrumentalities; and while the owner of
said stock to exercise all the rights or ownership, including the right to vote thereon; Provided, That
the Authority shall not invest its funds in any highly risky debt instruments issued without recourse
to commercial banks or investment houses as well as in any highly speculative stocks.
j) For carrying on its business, or for the purpose of attaining or furthering any of its objectives, to
perform any and all acts which a corporation, co-partnership, or natural person is authorized to
perform under the laws now existing or which may be enacted hereafter.
k) To issue such rules and regulations as may be necessary to effectively carry out the powers and
purposes herein provided including the plans, programs and projects of the Authority, subject to
the approval of the NEDA, the same to take effect thirty (30) days after publication thereof, in a
newspaper of general circulation.
Sec. 6. Capitalization and Financing. The Authority shall have an authorized capital of One
Hundred Million Pesos (P100,000,000) of which the amount of Fifty-One Million Pesos
(P51,000,000) shall be subscribed by the national government and Forty-Nine Million Pesos
(P49,000,000) shall be subscribed by cities, provinces, municipalities, government corporations
and private investors; Provided, That at least twenty-five percent of the national government's
subscription shall be fully paid: Provided, further, That the authorized capital stock may be
increased upon the recommendation of NEDA.
The authorized capital stock of One Hundred Million pesos (P100M) shall be divided into One
Million (1,000,000) Shares of stock with a par value of One hundred Pesos (P100) per share.
The shares of stock of the Authority shall be divided into (1) 700,000 common shares (voting) and
(2) 300,000 preferred shares (non-voting) with such fixed rates of return as shall be determined by
the Board. Of the common shares of 700,000 a minimum of 400,000 shares shall be subscribed by
the national government and at least sixty per cent of the balance shall be subscribed by the
Provinces of Laguna and Rizal in such proportion as may be agreed upon by both provincial
governments in accordance with their respective capacities. The remaining balance of the common
shares shall be open for subscription to cities, provinces, municipalities and private investors.
Of the preferred shares of stock of 300,000 a minimum of 110,000 shares shall be subscribed by
the national government. The balance of the preferred shares shall be available for subscription to
cities, provinces, municipalities, government corporations, and private investors; Provided,
however, That preferred shares shall enjoy preference with respect to distribution of dividends and
assets in case of dissolution.

Sec. 7. Powers of Municipal Corporations to Subscribe. For purposes of attaining the purposes of
this Authority, municipalities, cities and provinces are hereby authorized to subscribe, own, buy
and hold shares of stock of this Authority.
Sec. 8. Operating Expenses. For the operating expenses of the Authority, the sum of One Million
Pesos (P1,000,000) is hereby appropriated annually for five (5) years from the general fund of the
National Government not otherwise appropriated from the date of approval of this Decree.
The Board of Directors may appropriate out of the funds of the Authority such as may be needed
or necessary for its operating expenses.
Sec. 9. Power to Incur Debts and to Issue Bonds. Whenever the Board of Directors may deem it
necessary for the Authority to incur an indebtedness or to issue bonds to carry out the provisions
of this Act, it shall by resolution so declare and state the purpose for which the proposed debt is to
be incurred. The resolution shall be confirmed by the affirmative vote of the stockholders
representing a majority of the subscribed capital stock outstanding and entitled to vote.
The Authority shall submit to the NEDA Board and the Monetary Board of the Central Bank for
approval its proposal to incur indebtedness or to issue bonds, This shall be considered authorized
upon approval of the President of the Philippines.
Sec. 10. Bond Limit. The bonds shall be issued in such amounts as will be needed at any one
time, taking into account the rate at which said bonds may be absorbed by the buying public and
the fund requirements of projects ready for execution, and considering further a proper balanced
productive and non-productive projects so that inflation shall be held to the minimum.
Sec. 11. Form, rates of interest, etc. of bonds. The Board of Directors, shall prescribe the form, the
rates of interest, the denominations, maturities, negotiability, convertibility, call and redemption
features, and all other terms and conditions of issuance, placement, sale, servicing, redemption,
and payment of all bonds issued by the Authority under this Act.
The bonds issued by virtue of this Act may be made payable both as to principal and interest in
Philippine currency or any readily convertible foreign currency; Said bonds shall be receivable as
security in any transaction with the government in which such security is required.
Sec. 12. Exemption from tax. The Authority shall be exempt from all taxes, licenses, fees, and
duties, incidental to its operations. This exemption shall extend to its subsidiary corporation:
Provided, That its subsidiary corporations shall be subject to all said taxes, licenses, fees, and
duties five (5) years after their establishment under a graduated scale as follows: twenty (20) per
centum of all said taxes during the sixth year, forty (40) per centum of all said taxes during the
seventh year, sixty (60) per centum of all said taxes during the eighth year, eighty (80) per centum
of all said taxes during the ninth year, and one hundred (100) per centum of all taxes during the
tenth year, after said establishment. Such examination shall include any tax or fee imposed by the
government on the sale, purchase or transfer of foreign exchange. All notes, bonds, debentures
and other obligations issued by the Authority shall be exempt from all taxes both as to principal
and interest, except inheritance and gift taxes.
Sec. 13. Sinking Fund. A sinking fund shall be established in such manner that the total annual
contribution thereto accrued at such rate of interest as may be determined by the Board of
Directors as confirmed by the stockholders representing a majority of the subscribed capital stock
outstanding and entitled to vote, shall be sufficient to redeem at maturity the bonds issued under
this Act.
Such funds shall be under the custody of the treasurer of the Authority who shall invest the same
in such manner as the Board of Directors may direct; charge all expenses of investment to said
sinking fund, and credit the same with the interest on investment and other income belonging to it.
Sec. 14. Guarantee by the government. The Republic of the Philippines hereby guarantees the

payment by the Authority of both the principal and the interest of the bonds, debentures,
collaterals, notes or such other obligations issued by the Authority by virtue of this Act, and shall
pay such principal and interest in the event that the Authority fails to do so. In case the Authority
shall be unable to pay the said principal and interest, the Secretary of Finance shall pay the
amount thereof which is hereby appropriated out of any funds in the National Treasury not
otherwise appropriated, and thereupon, to the extent of the amounts so paid, the Government of
the Republic of the Philippine shall succeed to all rights of the holders of such bonds, debentures,
collaterals, notes or other obligations, unless the sum so paid by the Republic of the Philippines
shall be refunded by the Authority within a reasonable time.

violating the provisions of this section by two-thirds (2/3) vote of the Board shall automatically be
disqualified from serving his unexpired term, and he shall furthermore be perpetually disqualified
for membership in the said Board.

CHAPTER V

Sec. 24. Board Meetings. The Board shall meet at least once a month. The Board shall be
convoked by the Chairman or upon written request signed by a majority of the members.

MANAGEMENT AND PERSONNEL

Sec. 15. Incorporation. The members of the first Board of Directors shall be elected by the
stockholders and the incorporation shall be held to have been effected from the date of the first
meeting of such Board.
Sec. 16. Board of Directors: Composition. The corporate powers shall be vested in and exercised
by a Board of Directors, hereinafter referred to as the Board, which shall be composed of eight (8)
members, to wit: the Executive Secretary, the Secretary of Economic Planning, the Secretary of
Natural Resources, the Secretary of Industry, a representative of Laguna Province, who shall be
designated by the Provincial Board of Laguna; a representative of Rizal Province to be designated
by its Provincial Board; the General Manager of the Authority to be appointed by the President of
the Philippines, and a representative of the private investors, likewise to be appointed by the
President of the Philippines from among a list of recommendees to be submitted by the private
investors: Provided, That the incumbent representative of the private investors: shall continue as
member until the President appoints his successor. The Board of Directors shall elect annually
from among their members a Chairman and a Vice Chairman. There shall be a Corporate
Secretary who shall be appointed the Board.
The officials next in rank to the above-mentioned member shall serve as permanent alternate
members and shall attend meetings of the Board in the absence of their principals and receive the
corresponding per diems.

Sec. 23. Removal, courtesy resignation. A member of the Board may be removed from office by a
vote of the stockholders holding or representing three-fourths (3/4) of the subscribed capital stock
outstanding and entitled to vote. No member of the Board shall be required to submit a courtesy
resignation at any time during his term of office.

Sec. 25. Per Diems and Allowances. The members of the Board shall receive for every meeting
attended a per diem to be determined by the Board: Provided, That in no case will the total amount
received by each exceed the sum of One Thousand Pesos (P1,000.00) for any one month.
Members of the Board shall be entitled to commutable transportation and representation
allowances in the performance of official functions for the Authority as authorized by the Board the
aggregate amount of which shall not exceed One Thousand Pesos (P1,000.00) for any one month.
Sec. 25-A. Powers and Functions of the Board of Directors.
a. To formulate, prescribe, amend and repeal rules and regulations to govern the conduct of
business of the Authority;
b. To appoint and fix the compensation of all officials from division heads and above, and others of
comparable rank including the Assistant General Manager upon the recommendation of the
General Manager;
c. By a majority vote of all members of the Board, to suspend, remove or otherwise discipline for
just cause all officials appointed by the Board;
d. To approve the annual and/or supplemental budgets of the Authority; and

Sec. 17. Acting Chairman. In case of vacancy in the position of Chairman, or in the absence of or
temporary incapacity of the Chairman, the Vice-Chairman shall act as such until a new Chairman
is duly elected by the Board.

e. To do such other acts and perform such other functions as may be necessary to carry out the
provisions of this Charter.

Sec. 18. (This provision were repealed by PD 813, Section 19, promulgated on October 17, 1975.)

Sec. 26. Powers and Functions of the General Manager. The General Manager shall be the chief
executive of the Authority. As such, he shall have the following powers and duties:

Sec. 19. (This provision were repealed by PD 813, Section 19, promulgated on October 17, 1975.)
Sec. 20. Effect of vacancies; quorum. Vacancies in the Board as long as there shall be four
members in office, shall not impair the powers of the Board to execute the functions of the
Authority. The affirmative vote of four (4) members of the Board shall be necessary at all times to
pass or approve any act or resolution.
Sec. 21. Qualifications of Directors. All members of the Board shall be citizens and residents of the
Philippines. They shall have demonstrated executive competence and experience in the field of
public administration, economic planning, resource management, or in the establishment and
management of large agricultural, industrial or commercial enterprises. No person shall be
nominated as member of the Board unless he be of unquestioned integrity and competence.
Sec. 22. Prohibition against "Conflict of Interest." No person member of the Board shall be
financially interested, directly or indirectly, in any contract entered into by the Authority or in any
special privileges granted by the Authority during his term of office. All contracts entered into in
violation of this provision shall automatically be null and void. Any member of the Board found

a. Submit for consideration of the Board the policies and measures which he believes to be
necessary to carry out the purposes and provisions of this Act;
b. Execute and administer the policies, plans, programs and projects approved by the Board;
c. Direct and supervise the operation and internal administration of the Authority. The General
Manager may delegate certain of his administrative responsibilities to other officers of the Authority
subject to the rules and regulations of the Board.
d. Appoint officials and employees below the rank of division heads to positions in the approved
budget upon written recommendation of the division head concerned using as guide the standard
set forth in the Authority's merit system;
e. Submit quarterly reports to the Board on personnel selection, placement and training;

f. Submit to the NEDA an annual report and such other reports as may be required, including the
details of the annual and supplemental budgets of the Authority, and
g. Perform such other functions as may be provided by law.
Sec. 27. (This provision were repealed by PD 813, Section 18, promulgated on October 17, 1975.)
Sec. 28. (This provision were repealed by PD 813, Section 19, promulgated on October 17, 1975.)
Sec. 29. Compensation. The General Manager shall receive a compensation of at least Thirty-Six
Thousand Pesos (P36,000.00) per annum which shall be charged against the annual appropriation
of the Authority for operating expenses. The Board of Directors may provide per diems and
allowances for the General Manager.
Sec. 30. Residence. The General Manager shall establish his residence within the region. The
General Manager shall not, during his term of office, engage in any business or profession or
calling other than those connected in the performance of his official duties as General Manager of
the Authority.
Sec. 31. Activities of the Authority: Key Officials. In carrying out the activities of the Authority, the
General Manager shall be assisted by an Assistant General Manager who shall have such powers,
duties, and functions that may be delegated to him by the General Manager, and shall act as
General Manager in the absence of or during the temporary incapacity of and/or until such time as
a new General Manager is duly appointed.
The Authority shall have the following divisions under the direct supervision and control of the
General Manager;
a. An Administrative Division which shall be responsible for providing services relating to
personnel, training, information, records, supplies general services, equipment and security;
b. A legal Division, to be headed by a Legal Counsel who shall represent the Authority in legal
actions and proceedings. This division shall be responsible for providing staff advice and
assistance on legal matters;
c. A Finance Division which shall be responsible for providing staff advice and assistance on
budgetary and financial matters, and safekeeping of corporate assets;
d. A Project Management Division which shall be responsible for the operation of approved
projects, project evaluation and management improvement matters;
e. A Planning and Project development Division which shall be responsible for providing services
relating to planning, programming, statistics and project development; and
f. An Engineering and Construction Division which shall be responsible for providing services
relating to detailed engineering plans and the construction and maintenance of project facilities.
The business and activities of each of these divisions shall be directed by an officer to be known
as its division head.
The Board may create such other divisions and positions as may be deemed necessary for the
efficient, economical and effective conduct of the activities of the Authority.
Sec. 32. Merit and Compensation System. All officials, agents and employees of the Authority shall

be selected and appointed on the basis of merit and fitness in accordance with a comprehensive
and progressive merit system to be established by the Authority. The recruitment, transfer,
promotion and dismissal of all personnel of the authority, including temporary workers, shall be
governed by such merit system: Provided, That the regular professional and technical personnel of
the Authority shall be exempt from the coverage of the classification and compensation plans of
the WAPCO and Civil Service rules and regulations: Provided, however, That such personnel shall
be permanent instates and shall be entitled to the benefits and privileges normally accorded to
government employees, such as retirement, GSIS insurance, leave and similar matters: Provided,
further, That the Director General of the NEDA shall review and recommend the approval of the
staffing pattern for professional and technical personnel of the Authority including modifications
thereof as may be necessary for five years from the date of approval of this Decree.
Sec. 33. (This provision were repealed by PD 813, Section 23, promulgated on October 17, 1975.)
Sec. 34. (This provision were repealed by PD 813, Section 24, promulgated on October 17, 1975.)
Sec. 34-A. Supervision by the NEDA. The Authority shall be directly under the NEDA for policy and
program integration.
Sec. 34-B. Submission of Financial Statement to NEDA. The Authority shall submit audited
financial statements to NEDA within 60 days after the close of the fiscal year, and it shall continue
to operate on the basis of not more than the preceding year's budget until the said financial
statements shall have been submitted.
Sec. 34-C. Management Audit by the NEDA. The NEDA, may, at its own instance, initiate a
management audit of the Authority when there is a reasonable ground to believe that the affairs of
the Authority have been mismanaged. Should such audit indicate mismanagement, the NEDA
shall take such appropriate measures as may be required by circumstances.
Sec. 35. Minimum Wage. All contracts entered into by the Authority which require the employment
of persons shall contain provision that not less than the minimum wage fixed by law shall be paid
to such persons so employed.
Sec. 36. Plans to be formulated within one year. Upon its organization, the Board of Directors shall
formulate and report to the stockholders with the utmost expeditious manner, but in no case longer
than one year, its plans and recommendations for the accelerated and balanced development of
the region in accordance with the aims and purposes of this Act.
Sec. 37. Supplies and services other than personnel. All purchases of supplies or contracts for
services, except for personnel services, entered into by the Authority shall be done only after the
proper bidding is held. Bidding shall not be required when: (1) the amount involved is five thousand
pesos (P5,000.00) or less; (2) an emergency, as certified to by the General Manager, requires
immediate delivery of the supplies or performance of the services: Provided, That in comparing
bids and making awards, the Authority shall consider such factors as the cost and relative quality
and adaptability of supplies or services; the bidders' financial responsibility, skill, experience,
integrity, and ability to furnish repairs and maintenance services; the time of delivery or
performance offered; and the compliance with the specifications desired.
Sec. 38. Auditing. The Board of Directors shall provide and appoint an auditor who shall formulate
an auditing system for the Authority. The auditor shall make a semestral and/or annual report
covering the financial conditions and operation of the Authority to the Board. These auditing
reports shall contain a statement of the resources and liabilities, including earnings and expenses,
the amount of paid-up capital stock, surplus, reserves, and profits, as well as losses, bad debts
and such other facts which, under auditing rules and regulations, are considered necessary to
accurately described the financial conditions and operation of the Authority. The auditor shall
report and directly responsible to the Board.
Sec. 39.

Sec. 39-A. Penal and Civil Liability Clause. Any person, natural or juridical, who shall violate any of
the provisions of this Act or any rules or regulation promulgated by the Authority pursuant thereto
shall be liable to imprisonment of not exceeding three years or to a fine not exceeding Five
Thousand Pesos or both at the discretion of the Court.

10) Subsidiary Corporation. A corporation that is organized or a corporation already in existence

wherein at least fifty-one per cent of its shares of stock are owned or controlled by the organizing
or subscribing Authority, in this case, the Laguna Lake Development Authority, to carry out or
accomplish its purposes.

If the violator be a corporation, partnership or association, the officer or officers of the organization
concerned shall be liable therefor.

11) Laguna Lake or Lake. Whenever Laguna Lake or lake is used in this Act, the same shall refer
to Laguna de Bay which is that area covered by the lake water when it is at the average annual
maximum lake level of elevation 12.50 meters, as referred to a datum 10.00 meters below mean
lower low water (M.L.L.W.). Lands located at and below such elevation are public lands which form
part of the bed of said lake.

The authority is hereby authorized to pursue separate civil actions for damages resulting from
infractions of the provisions of this Act, rules or regulations issued pursuant thereto and/or
conditions embodied in the clearances or permits issued by the Authority.
Sec. 40. Separability Clause. The provisions of this Act are hereby declared to be separable, and
in the event any one or more such provisions are held unconstitutional, they shall not affect the
validity of other provisions.

Sec. 42. Laws repealed. All Acts, charters, executive orders, administrative orders, proclamations,
rules and regulations, or parts thereof in conflict with this Act are hereby repealed or modified
accordingly.
Sec. 43. Effectivity. This Act shall take effect upon its approval.

Sec. 40-A. Transitory Provision. When the Regional Development Council for the region becomes
operational, the socio-economic planning functions as envisioned under this Charter shall be
assumed by the aforementioned Regional Development Council in accordance with the provisions
of the Integrated Reorganization Plan, as amended. All incumbent officials and employees shall
continue in office and those qualified shall have preference in filling up new positions that may be
created as consequence of this Decree.
Sec. 41. Definition of Terms.
1) Act Whenever used in this Act, shall refer to the enabling Act creating the Laguna Lake
Development Authority;

Approved: July 18, 1966.

REPUBLIC ACT 7611
AN ACT ADOPTING THE STRATEGIC ENVIRONMENT PLAN FOR PALAWAN, CREATING
THE ADMINISTRATIVE MACHINERY TO ITS IMPLEMENTATION, CONVERTING THE
PALAWAN INTEGRATED AREA DEVELOPMENT PROJECT OFFICE TO ITS SUPPORT
STAFF, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

2) Authority Whenever cited in this Act shall mean the Laguna Lake Development Authority;

CHAPTER I GENERAL PROVISIONS

3) Board The word Board shall always refer to the Board of Directors of the Laguna Lake
Development Authority;

SEC. I Title - This Act shall be known as the "Strategic Environmental Plan (SEP) for Palawan
Act."

4) Region The word Region in this connection mean the Laguna Lake area proper comprising the
provinces of Rizal and Laguna and the cities of San Pablo, Manila, Pasay, Quezon and Caloocan;

SEC. 2 Declaration of Policy - It is hereby declared the policy of the State to protect, develop and
conserve its natural resources . Toward this end, it shall assist and support the implementation of
plans, programs and projects formulated to preserve and enhance the environment, and at the
same time pursue the socio-economic development goals of the country.

5) Government instrumentalities or agencies or entities. Whenever used in this Act shall means
instruments of the national or local governments vested with powers to accomplish a definite
government aim or purpose;
6) Municipal Corporation. Whenever used in this Act shall mean one that is organized for political
purposes with political powers exercised for the good of the public, subject to legislative control
and with officers of the government as its members to administer or discharge public duties;
7) Government Corporation. Whenever used shall refer to corporations engaged in performing
functions impressed with public interest;
8) Investor With regards to this Act, investors shall include public and private investors whether
foreign or local;
9) External Auditor. Shall mean a firm or a person hired outside the Authority or agency to audit the
books of accounts of another corporation or agency; examine financial records, prepare audit
reports on findings in the operation of the agency; review the statement on the performance report
of the Authority.

It shall support and promote the sustainable development goals for the provinces through proper
conservation, utilization and development of natural resources to provide optimum yields on a
continuing basis. With specific reference to forest resources, the State shall pursue and implement
forest conservation and protection through the imposition of a total commercial logging ban as
hereinafter provided.
It shall also adopt the necessary measures leading to the creation of an institutional machinery
including among others, fiscal and financial programs to ensure the effective and efficient
implementation of environmental plans, programs and projects.
It shall also promote and encourage the involvement of all sectors of society and maximize people
participation (including tribal groups) in natural resource management, conservation and
protection.
SEC. 3 Definition of Terms. - As used in this Act, the following terms are defined as follows:
(1) "Palawan" refers to the Philippine province composed of islands and islets located 747' and
12'22' north latitude and 117'00' and 119'51' east longitude, generally bounded by the South
China Sea to the northwest and by the Sulu Sea to the east.

(2) "Sustainable development" means the improvement in the quality of life of the present and
future generations through the complementation of development and environmental protection
activities;
(3) "Natural resources" refers to life-support systems such as the sea, coral reefs, soil, lakes,
rivers, and forest as well as useful products found therein such as animals, wildlife, tress and other
plants, including the aesthetic attributes of scenic sites that are not manmade.
(4) "Tribal land areas" refers to the areas comprising both land and sea that are traditionally
occupied by the cultural minorities.
(5) "Environmentally critical areas" (ECAN) refers to terrestrial aquatic and marine areas that need
special protection and conservation measures as they are ecologically fragile;

resources and political will to actually implement and sustain SEP activities.
SEC. 6 Legal effects. - The SEP shall serve as the framework to guide the government agencies
concerned in the formulation and implementation of plans, programs and projects affecting the
environment and natural resources of Palawan. It shall therefore be incorporated in the Regional
Development Plan of Region IV as part of said plan.
SEC. 7 Environmentally Critical Areas Network (ECAN) - The SEP shall establish a graded
system of protection and development control over the whole of Palawan, including its tribal lands,
forest, mines, agricultural areas, settlement areas, small islands mangroves, coral reefs, seagrass
beds and the surrounding sea. This shall be known as the Environmentally Critical Areas Network,
hereinafter referred to as ECAN, and shall serve as the main strategy of the SEP.
The ECAN shall ensure the following,

(6) "Participatory processes" means the involvement of all the key sectors of development, from
the grassroots to the policy-making bodies of the National Government, in providing the values and
ideas from which strategic development and environmental protection action can come about;
(7) "Conservation" refers to the wise use of natural resources that assures regeneration and
replenishment for continuous benefit;
(8) "Ecology" refers to the life-sustaining interrelationships and interactions of organisms with each
other and with their physical surroundings;

(1) Forest conservation and protection through the imposition of a total commercial logging ban in
all areas of maximum protection and in such other restricted use zones as the Palawan Council for
Sustainable Development as hereinafter created may provide;
(2) Protection of Watersheds;
(3) Preservation of biological diversity;
(4) Protection of tribal people and the preservation of their culture;

(9) "Commercial logging" refers to the cutting, felling or destruction of tress from old growth and
residual forest for the purpose of selling or otherwise disposing of the cut or felled logs for profit;

(5) Maintenance of maximum sustainable yield;

(10) "SEP" refers to the Strategic Environmental Plan discussed in Section 4 of this Act;

(6) Protection of the rare and endangered species and their habitat;

(11) "ECAN" refers to the Environmentally Critical Areas Network as provided in Section 7 of this
Act; and

(7) Provision of areas for environmental and ecological research, education and training; and

(12) "EMES" refers to the Environmental Monitoring and Evaluation System provided in Section 13
of this Act.
CHAPTER II STRATEGIC ENVIRONMENT PLAN: ADOPTION, PHILOSOPHY AND LEGAL
EFFECTS
SEC. 4 Strategic Environmental Plan. - A comprehensive framework for the sustainable
development of Palawan compatible with protecting and enhancing the natural resources and
endangered environment of the province is hereby adopted. Such framework shall be known as
the Strategic Environmental Plan for Palawan, hereinafter referred to as SEP, and shall serve to
guide the local government of Palawan and the government agencies concerned in the formulation
and implementation of plans, programs and projects affecting said province.

(8) Provision of areas for tourist and recreation.

SEC. 8 Main Components. - The areas covered by the ECAN hall be classified into three (3) main
components;
(1) Terrestrial - the terrestrial component shall consist of the mountainous as well as ecologically
important low hills and lowland areas of the whole province. It may be further subdivided into
smaller management components.
(2) Coastal/marine area - this area includes the whole coastline up to the open sea. This is
characterized by active fisheries and tourism activities.
(3) Tribal Ancestral lands - These are the areas traditionally occupied by the cultural communities.

SEC. 5 Strategic Environmental Plan (SEP) Philosophy. - The SEP shall have as its general
philosophy, the sustainable development of Palawan, which is the improvement in the quality of life
of its people in the present and future generations through the use of complementary activities of
development and conservation that protect life-support ecosystem and rehabilitate exploited areas
to allow upcoming generations to sustain development growth. It shall have the following features:
(1) Ecological viability - The physical and biological cycles that maintain the productivity of natural
ecosystems must always be kept intact.
(2) Social acceptability - The people themselves, through participatory process, should be fully
committed to support sustainable development activities by fostering equity in access to resources
and the benefits derived from them.
(3) Integrated approach - This allow for a holistic view of problems and issues obtaining in the
environment as well as opportunities for coordination and sharing that will eventually provide the

SEC. 9 Terrestrial Component: Management Scheme and Zonation. - the terrestrial

component may be further subdivided into smaller management components for a more efficient
supervision. These management components, in turn, shall each be further subdivided into the
following zones;
(1) Area of maximum protection or core zone -This zone shall be fully and strictly protected and
maintained free of human disruption. Included here are all types of natural forest which include first
growth forest, residual forest and edges of intact forest, areas above one thousand (1,000) meters
elevation, peaks of mountains or other areas with very steep gradients, and endangered habitats
and habitats of endangered and rare species. Exceptions, however, may be granted to traditional
uses of tribal communities of these areas for minimal and soft impact gathering of forest species
for ceremonial and medicinal purposes.
(2) Buffer zone - This area permits regulated use and may be further subdivided into three (3) sub-

zones;
(a) Restricted use area. Generally surrounds the core zone and provides a protective barrier.
Limited and nonconsumptive activities may be allowed in this area.

SEC. 15 Environmental Education and Extension - The SEP shall design an environmental
information and education designed to gradually wean the people away from destructive practices
and shall recommend practical ways as an alternative.

( b) Controlled use area. Encircles and provides the outer barrier to the core and restricted use
area. Controlled forest extraction, like the collecting of minor forest products, and strictly controlled
logging and mining may be allowed.

Training programs for the non-governmental organizations (NGO's), business sector

representatives and community leaders shall be organized. This may establish linkages between
the NGOs, community leaders, sector representatives and the staff of line agencies development
communication or public information section and at the same time, be used to plan out a
comprehensive public information drive.

(c) Traditional use area. Edges of intact forests where traditional land use is already stabilized is
being stabilized. Management and control shall be carried out with the other supporting programs
of the SEP.

Simultaneously, community organizing shall be enhanced to reinforce non-formal approaches,

complementing regular environment/science courses in the school.

(3) Multiple/manipulative use area - This is the area where the landscape has been modified for
different forms of land use such as intensive timber extraction, grazing and pastures, agriculture
and infrastructures development. Control and management shall be strictly integrated with the
other supporting programs of the SEP and other similar programs of the Government.
SEC. 10 Coastal/Marine Zone. - A different and simplified scheme of management zonation shall
be applied to this component due to its geographical characteristics, critical nature, and patterns of
resource use. Equitable access to the resource and management responsibility by the local
community shall be the underlying management philosophy of this component.
(1) Core zone. - This area shall be designated free from any human activity. This includes
sanctuaries for rare and endangered species, selected coral reefs, seagrass and mangrove
ecosystem reserves.
(2) Multiple use zone - Aside from being development area, this zone also serves as the buffer
zone where fishery, mariculture, recreation, rehabilitation of small islands and mangrove
ecosystem education and research are allowed.
SEC. 11 Tribal Ancestral Lands. - These areas, traditionally occupied by cultural minorities,
comprise both land and sea areas. These shall be treated in the same graded system of control
and prohibition as in the others abovementioned except for strong emphasis in cultural
considerations. The SEP, therefore, shall define a special kind of zonation to fulfill the material and
cultural needs of the tribes using consultative processes and cultural mapping of the ancestral
lands.
CHAPTER III MANAGEMENT OF RESOURCES OUTSIDE OF THE ECOLOGICALLY
CRITICAL AREAS
SEC. 12 Management of Resources Outside of the Ecologically Critical Areas. The SEP shall
provide for the management of resources outside of the ECAN and shall include coastal resources,
resources of the catchment areas, timber and mines, development in the lowlands, and settlement
areas. It shall also provide for tourism planning.

CHAPTER V ADMINISTRATIVE MACHINERY FOR THE IMPLEMENTATION OF THE SEP

SEC. 16 Palawan Council for Sustainable Development. - The governance, implementation and
policy direction of the Strategic Environmental Plan shall be exercised by the herein created
Palawan Council for Sustainable Development (PCSD), hereinafter referred to as the Council,
which shall be under the Office of the President. It shall be composed of the Members of the
House of the Representatives representing the province of Palawan, the Deputy Director General
of the National Economic and Development Authority, the Undersecretary of Environment and
Natural Resources, the Undersecretary for Special Concerns of the Department of Agriculture, the
Governor of Palawan, the Mayor of Puerto Princesa City, the President of the Mayor's League of
Palawan, the President of the Provincial Chapter of the Liga ng mga Barangay, the Executive
Director of the Palawan council for Sustainable Development Staff as provided in Section 20 of this
Act, and such other members from the public or private sectors as the majority of the council may
deem necessary.
The Council shall elect, from among its members, a Chairman and a Vice-Chairman.
SEC. 17 Quorum. - A majority of the members of the Council shall constitute a quorum for the
conduct of business.
SEC. 18 Compensation. - The members of the council shall be entitled to per diems and
allowances in accordance with existing laws in the performance of their duties and in carrying out
of the business of the Council. The per diems shall be in the amount of Five hundred pesos (p500)
for every meeting: Provided, that the per diems collected do not exceed the equivalent of per
diems for four (4) meetings in a month.
SEC. 19 Powers and Functions. - In order to successfully implement the provisions of this Act,
the Council is hereby vested with the following powers and functions.
(1) Formulate plans and policies as may be necessary to carry out the provisions of this Act.
(2) Coordinate with the local governments to ensure that the latter's plans, programs and projects
are aligned with the plans, programs and policies of the SEP.

CHAPTER IV SUPPORT MECHANISM

SEC. 13 Environmental Monitoring and Evaluation System (EMES) - In order to monitor
achievement of its goals, SEP shall establish an Environmental Monitoring and Evaluation System
(EMES) which shall ensure a systematic and reliable means of data generation for the various
concerns of the SEP. It shall measure changes in environmental status, identify adverse
environmental trends and crisis areas, recommend solutions, assess the implementation of the
SEP, and suggest measures to make the SEP more responsible to the changing needs.
SEC. 14 Environmental Research - The SEP shall provide for a system of research so that
additional information for accurate planning as well as data to solve new problems in the
implementation of the SEP shall be supplied. As such, the SEP's researches shall not be confined
to the physical and biological features of the environment, achieved through surveys, monitoring,
resource assessments and research into processes, but shall also extend to policies and
socioeconomic questions.

(3) Call on any department, bureau, office, agency or instrumentality of the Government, and on
private entities and organizations for cooperation and assistance in the performance of its
functions.
(4) Arrange, negotiate for, accept donations, grants, gifts, loans, and other fundings from domestic
and foreign sources to carry out the activities and purposes of the SEP.
(5) Recommend to the Congress of the Philippines such matters that may require legislation in
support of the objectives of the SEP.
(6) Delegate any or all of its powers and functions to its support staff, as hereinafter provided,
except those which by provisions of law cannot be delegated;

(7) Establish policies and guidelines for employment on the basis, of merit, technical competence
and moral character and prescribe a compensation and staffing pattern;
(8) Adopt, amend and rescind such rules and regulations and impose penalties therefore for the
effective implementation of the SEP and the other provisions of this Act.
(9) Enforce the provisions of this Act and other existing laws. Rules and regulations similar to or
complementary with this Act;
(10) Perform related functions which shall promote the development, conservation, management,
protection, and utilization of the natural resources of Palawan; and
(11) Perform such other powers and functions as may be necessary in carrying out its functions,
powers, and the provisions of this Act.
SEC. 20 Conversion of Palawan Integrated Area Development Project Office (PIADPO) to the
Palawan council for Sustainable Development Staff. - The Palawan Integrated Area
Development Project Office, hereinafter referred to as PIADPO, is hereby converted to the
Palawan Council for Sustainable Development Staff which shall serve as the regular professional
support staff of the Council and shall provide the machinery to coordinate the policy and functions,
implement programs, and organize such services as may be required by the Council in the
exercise of its functions. It shall be independent of any other department or agency of the
Government other than the herein provided Council. All the applicable powers, functions,
personnel, complement staff, appropriations, records, equipment, property, funds, and other assets
of the PIADPO, as well as all its obligations and liabilities, are hereby transferred to the Palawan
Council for Sustainable Development Staff. The incumbent Director of the PIADPO shall be the
Executive Director of the Palawan Council for Sustainable Development Staff and shall lead all its
operations. Thereafter, the Executive Director shall be appointed by the members of the Council.
He shall also be ex officio member of the Council.
CHAPTER VI APPROPRIATION AND FINAL PROVISIONS
Sec. 21 Appropriations. - The amount necessary to carry out the provisions of this Act shall be
charged to the current fiscal year appropriation of the PIADPO. Thereafter, such sums as may be
necessary shall be included in the annual General Appropriations Act.
SEC. 22 - Separability Clause. - If any of the provisions of this Act shall be declared
unconstitutional, the other provisions of this Act shall remain valid.
SEC. 23 Repealing Clause. - All laws; decrees, orders, rules and regulations or parts thereof
contrary to or inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

statements:
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order and decree:
Section 1. Policy. It is hereby declared a continuing policy of the State (a) to create, develop,
maintain and improve conditions under which man and nature can thrive in productive and
enjoyable harmony with each other, (b) to fulfill the social, economic and other requirements of
present and future generations of Filipinos, and (c) to insure the attainment of an environmental
quality that is conducive to a life of dignity and well-being.
Section 2. Goal. In pursuing this policy, it shall be the responsibility of the Government, in
cooperation with concerned private organizations and entities, to use all practicable means,
consistent with other essential considerations of national policy, in promoting the general welfare to
the end that the Nation may (a) recognize, discharge and fulfill the responsibilities of each
generation as trustee and guardian of the environment for succeeding generations, (b) assure the
people of a safe, decent, healthful, productive and aesthetic environment, (c) encourage the widest
exploitation of the environment without degrading it, or endangering human life, health and safety
or creating conditions adverse to agriculture, commerce and industry, (d) preserve important
historic and cultural aspects of the Philippine heritage, (e) attain a rational and orderly balance
between population and resource use, and (f) improve the utilization of renewable and nonrenewable resources.
Section 3. Right to a Healthy Environment. In furtherance of these goals and policies, the
Government recognizes the right of the people to a healthful environment. It shall be the duty and
responsibility of each individual to contribute to the preservation and enhancement of the
Philippine environment.
Section 4. Environmental Impact Statements. Pursuant to the above enunciated policies and
goals, all agencies and instrumentalities of the national government, including government-owned
or controlled corporations, as well as private corporations firms and entities shall prepare, file and
include in every action, project or undertaking which significantly affects the quality of the
environment a detail statement on
(a) the environmental impact of the proposed action, project or undertaking
(b) any adverse environmental effect which cannot be avoided should the proposal be
implemented;
(c) alternative to the proposed action;

SEC. 24 Effectivity Clause. - This Act shall take effect upon its approval.
PRESIDENTIAL DECREE No. 1151
PHILIPPINE ENVIRONMENTAL POLICY
WHEREAS, the individual and, at times, conflicting, demands of population growth, urbanization,
industrial expansion, rapid natural resources utilization and increasing technological advances
have resulted in a piecemeal-approach concept of environmental protection;
WHEREAS, such tunnel-vision concept is not conducive to the attainment of an ideal
environmental situation where man and nature can thrive in harmony with one another; and
WHEREAS, there is now an urgent need to formulate an intensive, integrated program of
environmental protection that will bring about a concerted effort towards the protection of the entire
spectrum of the environment through a requirement of environmental impact assessments and

(d) a determination that the short-term uses of the resources of the environment are consistent
with the maintenance and enhancement of the long-term productivity of the same; and
(e) whenever a proposal involve the use of depletable or non-renewable resources, a finding must
be made that such use and commitment are warranted.
Before an environmental impact statement is issued by a lead agency, all agencies having
jurisdiction over, or special expertise on, the subject matter involved shall comment on the draft
environmental impact statement made by the lead agency within thirty (30) days from receipt of the
same.
Section 5. Agency Guidelines. The different agencies charged with environmental protection as
enumerated in Letter of Instruction No. 422 shall, within sixty (60) days from the effectivity of this
Decree, submit to the National Environmental Protection Council (NEPC), their respective
guidelines, rules and regulations to carry out the provisions of Sec. 4 hereof on environmental
impact assessments and statements.

Section 6. Repealing Clause. All Acts, Presidential Decrees, executive orders, rules and
regulations or parts thereof which are inconsistent with the provisions of this Decree are hereby
repealed, amended or modified accordingly.

and the nature of pollutants emitted.

Section 5. Community Noise Standards. Appropriate standards for community noise levels shall
be established considering, among others, location, zoning and land use classification.

Section 7. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila this 6th day of June in the year of Our Lord, nineteen hundred and
seventy-nine.
PRESIDENTIAL DECREE No. 1152
PHILIPPINE ENVIRONMENTAL CODE
WHEREAS, the broad spectrum of environment has become a matter of vital concern to the
government;
WHEREAS, the national leadership has taken a step towards this direction by creating the National
Environmental Protection Council under Presidential Decree No. 1121;
WHEREAS, it is necessary that the creation of the Council be implemented with the launching of a
comprehensive program of environmental protection and management;
WHEREAS, such a program can assume tangible and meaningful significance only by establishing
specific environment management policies and prescribing environment quality standards in a
Philippine Environment Code:
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby order and decree:
Section 1. Short Title. This Decree shall be known and cited as the "Philippine Environment
Code."
TITLE I AIR QUALITY MANAGEMENT
Section 2. Purposes. The purposes of this Title are:
(a) to achieve and maintain such levels of air quality as to protect public health; and
(b) to prevent to the greatest extent practicable, injury and/or damage to plant and animal life and
property, and promote the social and economic development of the country.
Chapter I Standards
Section 3. Ambient Air Quality Standards. There shall be established ambient air quality standards
which shall prescribe the maximum concentration of air pollutants permissible in the atmosphere
consistent with public health, safety and general welfare.
In the establishment of ambient air quality standards, factors such as local atmospheric conditions,
location and land use, and available technology, shall be considered among others.
Section 4. National Emission Standards. There shall be established national emission standards
for new and existing stationary and mobile sources of pollution which shall consider among others
such factors as type of industry, practicable control technology available, location and land use,

Section 6. Standards for Noise-Producing Equipment. There shall be established a standard for
noise producing equipment such as construction equipment, transportation equipment, stationary
engines, and electrical or electronic equipment and such similar equipment or contrivances. The
standards shall set a limit on the acceptable level of noise emitted from a given equipment for the
protection of public health and welfare, considering among others, the magnitude and condition of
use, the degree of noise reduction achievable through the application of best available technology
and the cost of compliance.
The Installation of any noise-producing equipment shall conform with the requirements of
Presidential Decree No. 1096 and other applicable laws as well as their implementing rules and
regulations.
Section 7. Aircraft Emission and Sonic Booms. Appropriate government agencies shall encourage
research studies on the harmful effects of aircraft emissions in the environment in order to
establish permissible emission standards.
Research and studies shall also be undertaken to mitigate and/or minimize the effects of sonic
booms in the environment.
Chapter II Regulation and Enforcement
Section 8. Air Quality and Noise Standards. The National Pollution Control Commission in
coordination with appropriate government agencies shall be responsible for the enforcement of
ambient air quality emission and noise standards, including the monitoring and surveillance of air
pollutants, licensing and permitting of air pollution control facilities, and the promulgation of
appropriate rules and regulations.
Existing air quality emission and noise standards may be revised and/or modified consistent with
new development and technology.
Section 9. Aircraft Noise. Community noise standards around airports shall be implemented by the
Civil Aeronautics Administration in coordination with the National Pollution Control Commission.
Section 10. Vehicular Emissions. The Land Transportation Commission, in coordination with the
National Pollution Control Commission, shall implement emission standards for motor vehicles and
may deputize other appropriate law enforcement agencies for the purpose.
Section 11. Radioactive Emissions. The release and emission of radioactivity into the environment
incident to the establishment or possession of nuclear energy facilities and radioactive materials,
handling, transport, production, storage, use and disposal of radioactive materials shall be
regulated by the Philippine Atomic Energy Commission in coordination with other appropriate
government agencies.
Chapter III Monitoring
Section 12. Air Quality Monitoring. The National Pollution Control Commission, in coordination
with appropriate government agencies, shall establish to the greatest extent practicable an air
quality monitoring network. Such air quality monitoring network shall put to maximum use the
capabilities of these agencies.

The National Environmental Protection Council shall be furnished with the results of air quality
monitoring activities.

(a) the standard of water quality or purity may vary according to beneficial uses; and
(b) the technology relating to water pollution control.

Section 13. Weather Modification. The Philippine Atmospheric, Geophysical and Astronomical
Services Administration shall monitor regularly meteorological factors affecting environmental
conditions in order to effectively guide air pollution monitoring activities.
Activities relating to weather modification such as rainfall stimulation and storm seeding
experiments shall be undertaken in consultation and/or in coordination with the Philippine
Atmospheric, Geophysical and Astronomical Service Administration.
TITLE II WATER QUALITY MANAGEMENT
Section 14. Purpose. It is the purpose of this Title to prescribe management guidelines aimed to
protect and improve the quality of Philippine water resources through:
(a) classification of Philippine waters;
(b) establishment of water quality standards;

Chapter II Protection and Improvement of Water Quality

Section 19. Enforcement and Coordination. The production, utilization, storage and distribution of
hazardous, toxic and other substances such as radioactive materials, heavy metals, pesticides,
fertilizers, and oils, and the disposal, discharge and dumping of untreated wastewater, mine
tailings and other substances that may pollute any body of water of the Philippines resulting from
normal operations of industries, water-borne sources, and other human activities as well as those
resulting from accidental spills and discharge shall be regulated by appropriate government
agencies pursuant to their respective charters and enabling legislations. In the performance of the
above functions, the government agencies concern shall coordinate with the National
Environmental Protection Council and furnish the latter with such information as may be necessary
to enable it to attain its objectives under Presidential Decree No. 1121.
Section 20. Clean-up Operations. It shall be the responsibility of the polluter to contain, remove
and clean up water pollution incidents at his own expense. In case of his failure to do so, the
government agencies concerned shall undertake containment, removal and clean-up operations
and expenses incurred in said operations shall be charged against the persons and/or entities
responsible for such pollution.

(c) protection and improvement of the quality of the Philippine water resources, and
(d) responsibilities for surveillance and mitigation of pollution incidents.
Chapter I Classification and Standards
Section 15. Classification of Philippine Waters. The National Pollution Control Commission, in
coordination with appropriate government agencies, shall classify Philippine waters, according to
their best usage. In classifying said waters, the National Pollution Control Commission shall take
into account, among others, the following:

Section 21. Water Quality Monitoring and Surveillance. The various government agencies
concerned with environmental protection shall establish to the greatest extent practicable a water
quality surveillance and monitoring network with sufficient stations and sampling schedules to meet
the needs of the country. Said water quality surveillance network shall put to maximum use the
capabilities of such government agencies. Each agency involved in such network shall report to
the National Environmental Protection Council the results of these monitoring activities as the need
arises.
TITLE III LAND USE MANAGEMENT
Section 22. Purpose. The purposes of this Title are:

(a) the existing quality of the body of water at the time of classification;
(b) the size, depth, surface area covered, volume, direction, rate of flow, gradient of stream; and

(a) to provide a rational, orderly and efficient acquisition, utilization and disposition of land and its
resources in order to derive therefrom maximum benefits; and

(c) the most beneficial uses of said bodies of water and lands bordering them for residential,
agricultural, commercial, industrial, navigational, recreational, and aesthetic purposes.

(b) to encourage the prudent use and conservation of land resources in order to prevent and
imbalance between the nation's needs and such resources.

Section 16. Reclassification of Waters Based on Intended Beneficial Use. Where the public
interest so requires, the National Pollution Control Commission, in coordination with appropriate
government agencies, shall reclassify a body of water based on the intended beneficial use and
take such steps as may be necessary to upgrade the quality of said water. Other government
agencies may adopt higher standards for a particular body of water, subject to the approval of the
National Pollution Control Commission.

Section 23. National Land Use Scheme. The Human Settlements Commission, in coordination
with the appropriate agencies of the government, shall formulate and recommend to the National
Environmental Protection Council a land use scheme consistent with the purpose of this Title.

Section 17. Upgrading of Water Quality. Where the quality of water has deteriorated to a degree
where its state will adversely affect its best usage, the government agencies concerned shall take
such measures as may be necessary to upgrade the quality of such water to meet the prescribed
water quality standards.

(a) a science-based and technology-oriented land inventory and classification system;

Section 18. Water Quality Standards. The National Pollution Control Commission shall prescribe
quality and effluent standards consistent with the guidelines set by the National Environmental
Protection Council and the classification of waters prescribed in the preceding sections, taking into
consideration, among others, the following:

The Land Use Scheme shall include among others, the following:

(b) a determination of present land uses, the extent to which they are utilized, underutilized,
rendered idle or abandoned;
(c) a comprehensive and accurate determination of the adaptability of the land for community
development, agriculture, industry, commerce and other fields of endeavor;

(d) a method of identification of areas where uncontrolled development could result in irreparable
damage to important historic, cultural, or aesthetic values, or natural systems or processes of
national significance;
(e) a method for exercising control by the appropriate government agencies over the use of land in
areas of critical environmental concern and areas impacted by public facilities including, but not
limited to, airports, highways, bridges, ports and wharves, buildings and other infrastructure
projects;
(f) a method to ensure the consideration of regional development and land use in local regulations;
(g) policy for influencing the location of new communities and methods for assuring appropriate
controls over the use of land around new communities;
(h) a system of controls and regulations pertaining to areas and development activities designed to
ensure that any source of pollution will not be located where it would result in a violation of any
applicable environmental pollution control regulations; and

resources with a view of formulating guidelines for the systematic and effective enforcement
thereof; and
(e) conserving the vanishing species of fish and aquatic resources such as turtles, sea snakes,
crocodiles, corals, as well as maintaining the mangrove areas, marshes and inland waters, coral
reef-areas and islands serving as sanctuaries for fish and other aquatic life.
Chapter II Wildlife
Section 28. Management Policy. The national government through the Department of Natural
Resources, shall establish a system of rational exploitation and conservation of wildlife resources
and shall encourage citizen participation in the maintenance and/or enhancement of their
continuous productivity.
Section 29. Measures for Rational Exploitation. Measures for rational exploitation of wildlife
resources may include, but shall not be limited to, the following:
(a) regulating the marketing of threatened wildlife resources.

(i) a recommended method for the periodic revisions and updating of the national land use scheme
to meet changing conditions.
Section 24. Location of Industries. In the location of industries, factories, plants, depots and similar
industrial establishments, the regulating or enforcing agencies of the government shall take into
consideration the social, economic, geographic and significant environmental impact of said
establishments.

(b) reviewing all existing rules and regulations on the exploitation of wildlife resources with a view
of formulating guidelines for the systematic and effective enforcement thereof; and
(c) conserving the threatened species of fauna, increasing their rate of reproduction, maintaining
their original habitat, habitat manipulation, determining bag/creel limits, population control in
relation to the carrying capacity of any given area, banning of indiscriminate and/or destructive
means of catching or hunting them.

TITLE IV NATURAL RESOURCES MANAGEMENT AND CONSERVATION

Chapter III Forestry and Soil Conservation
Section 25. Purposes. The purposes of this Title are:
(a) to provide the basic policy on the management and conservation of the country's natural
resources to obtain the optimum benefits therefrom and to preserve the same for the future
generations; and
(b) to provide general measures through which the aforesaid policy may be carried out effectively.

Section 30. Management Policy for Forestry. The national government, through the Department of
Natural Resources, shall undertake a system of rational exploitation of forest resources and shall
encourage citizen participation therein to keep the country's forest resources at maximum
productivity at all time.
Section 31. Measures for Rational Exploitation of Forest Resources. Measures for the rational
exploitation of forest resources may include, but shall not be limited to, the following:

Chapter I Fisheries and Aquatic Resources

(a) regulating the marketing of threatened forest resources;
Section 26. Management Policy. The National government, through the Department of Natural
Resources, shall establish a system of rational exploitation of fisheries and aquatic resources
within the Philippine territory and shall encourage citizen participation therein to maintain and/or
enhance the optimum and continuous productivity of the same.
Section 27. Measures for National Exploitation. Measures for the national exploitation of fisheries
and other aquatic resources may include, but shall not be limited to, the following:
(a) undertaking manpower and expertise development;
(b) acquiring the necessary facilities and equipment;
(c) regulating the marketing of threatened species of fish or other aquatic resources;
(d) reviewing all existing rules and regulations on the exploitation of fisheries and aquatic

(b) reviewing all existing rules and regulations on the exploitation of forest resources with a view of
formulating guidelines for the systematic and efficient enforcement thereof;
(c) conserving threatened species of flora as well as increasing their rate of propagation; the
banning of destructive modes of exploitation, kaingin making or shifting cultivation, indiscriminate
harvesting of minor forest products the recycling methods of waste materials, and
(d) carrying out a continuing effect on reforestation; timber stand improvement; forest protection;
land classification; forest occupancy management; agri-silviculture; range management; agrisilvicultural/kaingin management; industrial tree plantation; parks and wildlife management;
multiple use forest; timber management and forest research.
Section 32. Use of Fertilizers and Pesticides. The use of fertilizers and pesticides in agriculture
shall be regulated prescribing therefor a tolerance level in their use. Their use shall be monitored
by appropriate government agencies to provide empirical data for effective regulation.

Section 33. Management Policy on Soil Conservation. The national government, through the
Department of Natural Resources and the Department of Agriculture, shall likewise undertake a
soil conservation program including therein the identification and protection of critical watershed
areas, encouragement of scientific farming techniques, physical and biological means of soil
conservation, and short-term and long-term researches and technology for effective soil
conservation.

(a) observe internationally accepted standards of safety; and

(b) provide safety devices to ensure the health and welfare of their personnel as well as the
surrounding community.
Chapter VI Conservation and Utilization of Surface and Ground Waters

Chapter IV Flood Control and Natural Calamities

Section 34. Measures in Flood Control Program. In addition to the pertinent provisions of existing
laws, the following shall be included in a soil erosion, sediment and flood control program;
(a) the control of soil erosion on the banks of rivers, the shores of lakes, and the seashores;
(b) the control of flow and flooding in and from rivers and lakes;
(c) the conservation of water which, for purposes of this Section shall mean forms of water, but
shall not include captive water;
(d) the needs of fisheries and wildlife and all other recreational uses of natural water;

Section 39. Management Policy. In addition to existing laws, the national government through the
National Water Resources Council in coordination with other appropriate government agencies,
shall prescribe measures for the conservation and improvement of the quality of Philippine water
resources and provide for the prevention, control and abatement of water pollution.
Chapter VII Mineral Resources
Section 40. Management Policy. - The national government, through the Department of Natural
Resources, shall undertake a system of gainful exploitation and rational and efficient utilization of
mineral resources and shall encourage citizen participation in this endeavor.
Section 41. Measures for Exploitation and Utilization of Mineral Resources. Measures for the
gainful exploitation and rational and efficient utilization of such mineral resources may include, but
shall not be limited to the following:

(e) measures to control the damming, diversion, taking, and use of natural water, so far as any
such act may affect the quality and availability of natural water for other purposes; and

(a) increasing research and development in mineral resources technology;

(f) measures to stimulate research in matters relating to natural water and soil conservation and
the application of knowledge thereby acquired.

(b) training of additional technical manpower needed in geology, geophysics, mining engineering,
and related fields;

Section 35. Measures to Mitigate Destructive Effects of Calamities. The national government,
through the Philippine Atmospheric, Geophysical and Astronomical Services Administration, shall
promote intensified and concerted research efforts on weather modification, typhoon, earthquake,
tsunami, storm surge, and other tropical natural phenomena in order to bring about any significant
effect to mitigate or prevent their destructive effects.

(c) regulating the exploitation of identified mineral reserves;

(d) accelerating the exploration of undiscovered mineral deposits; and
(e) encouraging the establishment of processing plants for refined metals.

Chapter V Energy Development

TITLE V WASTE MANAGEMENT
Section 36. Policy. Consistent with the environmental protection policies, the national government,
through the Energy Development Board, shall undertake an energy development program
encouraging the utilization of invariant sources such as solar, wind and tidal energy.
Section 37. Measures for Energy Development. Measures for energy development program may
include, but shall not be limited to, the following:
(a) setting up of pilot plants utilizing invariant sources of energy;
(b) training of technical personnel for purposes of energy development; and

Section 42. Purpose. The purposes of this Title are:

(a) to set guidelines for waste management with a view to ensuring its effectiveness;
(b) to encourage, promote and stimulate technological, educational economic and social efforts to
prevent environmental damage and unnecessary loss of valuable resources of the nation through
recovery, recycling and re-use of wastes and waste products; and
(c) to provide measures to guide and encourage appropriate government agencies in establishing
sound, efficient, comprehensive and effective waste management.

(c) conducting researches aimed at developing technology for energy development.

Chapter I Enforcement and Guidelines
Section 38. Safety Measures on Energy Development. Rules and regulations shall be
promulgated to prevent or mitigate the adverse effects of energy development on the environment.
For this purpose, all nuclear powered plants exploring and utilizing geothermal energy, whether
owned or controlled by private or government entities shall:

Section 43. Waste Management Programs. Preparation and implementation of waste

management program shall be required of all provinces, cities and municipalities. The Department
of Local Government and Community Development shall promulgate guidelines for the formulation
and establishment of waste management programs.

Every waste management program shall include the following:

(a) an orderly system of operation consistent with the needs of the area concerned;
(b) a provision that the operation will not create pollution of any kind or will constitute public
nuisance;
(c) a system for a safe and sanitary disposal of waste;
(d) a provision that existing plans affecting the development, use and protection of air, water or
natural resources shall be considered;
(e) schedules and methods of implementing the development, construction and operation of the
plan together with the estimated costs; and
(f) a provision for the periodic revision of the program to ensure its effective implementation.
Section 44. Responsibility of Local Governments. Each province, city or municipality shall provide
measures to facilitate the collection, transportation, processing and disposal of waste within its
jurisdiction in coordination with other government agencies concerned. For this purpose, the
national government shall provide the necessary subsidy, to local governments upon request
made through the National Environmental Protection Council and subject to such terms and
conditions as the latter may provide.

Chapter III Methods of Liquid Waste Disposal

Section 50. Liquid Waste Disposal. Wastewater from manufacturing plants, industries, community,
or domestic sources shall be treated either physically, biologically or chemically prior to disposal in
accordance with the rules and regulations promulgated by proper government authority.
Section 51. Applicability of Sec. 8. The provisions of Sec. 8 hereof shall likewise apply to the
dumping or disposal of liquid waste into the sea and other bodies of water.
TITLE VI MISCELLANEOUS PROVISIONS
Section 52. Population-Environment Balance. In the assessment of development projects, the
National Environmental Protection Council, hereinafter referred to in this Title as the "Council" shall
take into consideration their effect on population with a view to achieving a rational and orderly
balance between man and his environment.
Section 53. Environmental Education. The Department of Education and Culture shall integrate
subjects on environmental education in its school curricula at all levels. It shall also endeavor to
conduct special community education emphasizing the relationship of man and nature as well as
environmental sanitation and practices.
The Council and other government agencies implementing environmental protection laws in
coordination with public information agencies of the government shall undertake public information
activities for the purpose of stimulating awareness and encouraging involvement in environmental
protection.

Chapter II Methods of Solid Waste Disposal

Section 45. Solid Waste Disposal. Solid Waste disposal shall be by sanitary landfill, incineration,
composing, and other methods as may be approved by competent government authority.
Section 46. Sanitary Landfills. Local governments, including private individuals, corporations or
organizations may operate one or more sanitary landfills. Any entity proposing to operate a
sanitary landfill shall submit to the appropriate government agency an operational work plan
showing, among other things, a map of the proposed work location, disposal areas for rubbish,
garbage, refuse and other waste matter; and the equipment or machinery needed to accomplish its
operations. In no case shall landfill or work locations under this Section be located along any shore
or coastline, or along the banks of rivers and streams. lakes throughout their entire length, in
violation of any existing rules and regulations.
Section 47. Incineration and Composting Plants. The installation and establishment of incineration
or composting plants, or the alteration/modification of any part thereof shall be regulated by the
local governments concerned in coordination with the National Pollution Control Commission.
Section 48. Disposal Sites. The location of solid waste disposal sites shall conform with existing
zoning; land use standards, and pollution control regulations.
Section 49. Dumping into the Sea and Other Navigable Waters. The dumping or disposal of solid
wastes into the sea and any body of water in the Philippines, including shorelines and river banks,
where these wastes are likely to be washed into the water is prohibited. However, dumping of solid
wastes or other materials into the sea or any navigable waters shall be permitted in case of
immediate or imminent danger to life and property, subject to the rules and regulations of the
Philippine Coast Guard and the National Pollution Control Commission.
Government agencies and private entities which are undertaking solid waste management
programs shall make consultations with the government agencies concerned with respect to the
effects of such dumping to the marine environment and navigation.

Section 54. Environmental Research. The Council shall undertake and/or promote continuing
studies and research programs on environmental management and shall, from time to time,
determine priority areas of environmental research.
Section 55. Monitoring and Dissemination of Environmental Information of Foreign Origin. The
Council shall keep itself informed of current environmental developments by obtaining information
and literature from foreign sources through the Department of Foreign Affairs, government
agencies and other entities, both domestic and foreign. Such information and literature shall be
given the widest dissemination possible.
Section 56. Incentives. To operate the installation and the utilization of pollution control facilities,
the following incentives are hereby granted:
(a) exemption to the extent of fifty (50) per cent of tariff duties and compensating tax for the
importation of pollution control equipment, devices, spare parts and accessories for a period of five
(5) years from the effectivity of this Decree subject to the conditions that will be imposed by the
Council.
(b) a tax credit equivalent to fifty (50) per cent of the value of the compensating tax and tariff duties
that would have been paid on the pollution control equipment, devices, spare parts and
accessories had these items been imported shall, within a period of seven (7) years from the
effectivity of this Decree be given to the person or firm who or which purchases them from a
domestic manufacturer, and another tax credit equivalent to twenty-five (25) per cent thereof shall
be given to the said manufacturer subject to such conditions as may be imposed by the Council;
and
(c) deductions equivalent to fifty (50) per cent of the expenses actually incurred on research
projects undertaken to develop technologies for the manufacture of pollution control equipment
which have been proven effective and commercially reproducible, from the taxable income of the
person or firm actually undertaking such projects subject to the conditions that may be imposed by
the Council.

The pollution control equipment, devices, spare parts and accessories acquired under this Section
shall not be sold, transferred or disposed of within five (5) years from the date of acquisition
without the prior approval of the Council otherwise the importer or purchaser shall pay twice the
amount of the tax exemption or tax credit granted.
Section 57. Financial Assistance/Grant. Financial assistance/grant for the study, design and
construction of environmental protection facilities especially for waste disposal in favor of cities,
municipalities, small and medium-scale industries may be granted on a case to case basis subject
to such conditions as may be imposed by the Council.
Section 58. Participation of Local Government Units and Private Individuals. It shall be the
responsibility of local government units as well as private individuals to actively participate in the
environmental management and protection programs of the government.
Section 59. Preservation of Historic and Cultural Resources and Heritage. It shall be the duty of
every person to help preserve the historic and cultural resources of the country such as sites,
structures, artifacts, documents, objects, memorials and priceless trees.
Section 60. Government Offices Performing Environmental Protection Functions. Government
agencies vested by law to exercise environmental management powers, shall continue to function
as such within their respective jurisdictions. The Council may, however, in the exercise of its
powers and functions under Presidential Decree No. 1121, inquire into any action or issue of
environmental significance.
Section 61. Public Hearings. The Council may, whenever it deems necessary, conduct public
hearings on issues of environmental significance.
Section 62. Definition of Terms. As used in this Code:
(a) "Ambient Air Quality" means the average atmospheric purity as distinguished from discharge
measurements taken at the source of pollution. It is the general amount of pollution present in a
broad area.

(i) "Areas of Critical Environmental Concern" are areas where uncontrolled development could
result in irreparable damage to important historic, cultural, or aesthetic values or natural systems or
processes of national significance.
(j) "Hazardous Substances" means elements or compounds which when discharged in any
quantity present imminent or substantial danger to public health and welfare.
(k) "Areas Impacted by Public Facilities" refers to areas where the introduction of public facilities
may tend to induce development and urbanization of more than local significance or impact.
(l) "Environmental Impact" is the alteration, to any degree, of environmental conditions or the
creation of a new set of environmental conditions, adverse or beneficial, to be induced or caused
by a proposed project.
(m) "Government Agencies" refers to national, local and regional agencies and instrumentalities
including government-owned and controlled corporations.
TITLE VII FINAL PROVISIONS
Section 63. Separability of Provisions. If any provision of this Code, or the application of such
provisions to any person or circumstance, is declared unconstitutional, the remainder of the Code
or the application of such provision to other persons or circumstances shall not be affected by such
declaration.
Section 64. Effectivity. This Code shall take effect upon its approval.
Done in the City of Manila, this 6th day of June in the year of Our Lord, nineteen hundred and
seventy-seven.
PRESIDENTIAL DECREE NO. 1586
[ESTABLISHING AN ENVIRONMENTAL IMPACT STATEMENT SYSTEM, INCLUDING OTHER
ENVIRONMENTAL MANAGEMENT RELATED MEASURES
AND FOR OTHER PURPOSES]

(b) "Emission" means the act of passing into the atmosphere an air contaminant, pollutant, gas
stream and unwanted sound from a known source.
(c) "Water Quality" means the characteristics of water which define its use in terms of physical,
chemical and biological contents; hence the quality of water for domestic use is different from
industrial use.
(d) "Water Quality Surveillance" means a close and continuous supervision of the water quality to
detect development movements or changes in the characteristics of the water.
(e) "Water Quality Standard" means a plan that is established by governmental authority as a
program for water pollution prevention and abatement. Such a standard may include water use
classification and the criteria to support the uses of the water.
(f) "Effluent Standards" means restrictions established to limit levels of concentration of physical,
chemical and biological constituents which are discharged from point sources.
(g) "Clean-up Operations" refers to activities conducted in removing the pollutants discharged or
spilled in water to restore it to pre-spill condition.
(h) "Accidental Spills" refers to spills of oil or other hazardous substances in water that result from
accidents involving the carriers of such substance such as collisions and grounding.

WHEREAS, the pursuit of a comprehensive and integrated environmental protection program

necessitates the establishment and institutionalization of a system whereby the exigencies of
socio-economic undertakings can be reconciled with the requirements of environmental quality;
WHEREAS, the regulatory requirements of Environmental Impact Statements and Assessments
instituted in pursuit of this national environmental protection program have to be worked into their
full regulatory and procedural details in a manner consistent with the goals of the program.
NOW, THEREFORE, I, Ferdinand E. Marcos, President of the Philippines, by virtue of the
powers vested in me by the Constitution do hereby order and declare:
Section 1
Policy
It is hereby declared the policy of the State to attain and maintain a rational and
orderly balance between socio-economic growth and environmental protection.
Section 2
Environmental Impact Statement System
There is hereby established an Environmental Impact Statement System founded and based on
the environmental impact statement required, under Section 4 of Presidential Decree No.
1151, of all agencies and instrumentalities of the national government, including
government-owned or controlled corporations, as well as private corporations, firms and
entities, for every proposed project and undertaking which significantly affect the

quality of the environment.

Section 3
Determination of Lead Agency
The Minister of Human Settlements or his designated representative is hereby authorized
to name the lead agencies referred to in Section 4 of Presidential Decree No. 1151 which
shall have jurisdiction to undertake the preparation of the necessary environmental
impact statements on declared environmentally critical projects and areas. All
Environmental Impact Statements shall be submitted to the National Environmental
Protection Council for review and evaluation.
Section 4
Presidential Proclamation of Environmentally Critical Areas and Projects
The President of the Philippines may, on his own initiative or upon recommendation of the
National Environmental Protection Council, by proclamation declare certain projects,
undertakings or areas in the country as environmentally critical. No person, partnership
or corporation shall undertake or operate any such declared environmentally critical
project or area without first securing an Environmental Compliance Certificate issued by
the President or his duly authorized representatives. For the proper management of said
critical project or area, the President may by his proclamation reorganize such
government offices, agencies, institutions, corporations or instrumentalities including
the re-alignment of government personnel, and their specific functions and
responsibilities.
For the same purpose as above, the Ministry of Human Settlements shall:

The National Environmental Protection Council shall issue the necessary rules and
regulations to implement this Decree. For this purpose, the National Pollution Control
Commission may be availed of as one of its implementing arms, consistent with the powers
and responsibilities of the National Pollution Control Commission as provided in P.D. No.
984.
Section 9
Penalty for Violation
Any person, corporation or partnership found violating Section 4 of this Decree, or the
terms and conditions in the issuance of the Environmental Compliance Certificate, or of
the standards, rules and regulations issued by the National Environmental Protection
Council pursuant to this Decree shall be punished by the suspension or cancellation of
his/its certificate and/or a fine in an amount not to exceed Fifty Thousand Pesos
(P50,000.000) for every violation thereof, at the discretion of the National
Environmental Protection Council.
Section 10
Environmental Revolving Fund
Proceeds from the penalties prescribed in the preceding Section 9 and other penalties
imposed by the National Pollution Control Commission as authorized in P.D. 984, shall be
automatically appropriated into an Environment Revolving Fund hereby created as an
exemption to P.D. 711 and P.D. 1234. The fund shall be used exclusively for the operation
of the National Environmental Protection Council and the National Pollution Control
Commission in the implementation of this Decree. The rules and regulations for the
utilization of this fund shall be formulated by the Ministry of Human Settlements and
submitted to the President for approval.

a. prepare the proper land or water use pattern for said critical project(s) or
area(s);

Section 11
Repealing Clause

b. establish ambient environmental quality standards;

c. develop a program of environmental enhancement or protective measures against
calamitous factors such as earthquake, floods, water erosion and others, and
d. perform such other functions as may be directed by the President from time to
time.

The Inter-Agency Advisory Council of the National Pollution Control Commission created
under Section 4 of P.D. 984 is hereby abolished and its powers and responsibilities are
forthwith delegated and transferred to the Control of the National Environmental
Protection Council.
All other laws, decrees, executive orders, rules and regulations inconsistent herewith
are hereby repealed, amended or modified accordingly.

Section 5
Environmentally Non-Critical Projects
All other projects, undertakings and areas not declared by the President as
environmentally critical shall be considered as non-critical and shall not be required to
submit an environmental impact statement. The National Environmental Protection Council,
thru the Ministry of Human Settlements may however require non-critical projects and
undertakings to provide additional environmental safeguards as it may deem necessary.
Section 6
Secretariat
The National Environmental Protection Council is hereby authorized to constitute the
necessary secretariat which will administer the Environmental Impact Statement System and
undertake the processing and evaluation of environmental impact statements.
Section 7
Management and Financial Assistance
Ministry of Human Settlements is hereby authorized to provide management and financial
support to government offices and instrumentalities placed under its supervision pursuant
to this Decree financed from its existing appropriation or from budgetary augmentation as
the Minister of Human Settlements may deem necessary.
Section 8
Rules and Regulations

Section 12
Effectivity Clause
This Decree shall take effect immediately.

Approved: June 11, 1978