PRESIDENTIAL DECREE No.

1586

ESTABLISHING AN ENVIRONMENTAL IMPACT STATEMENT SYSTEM, INCLUDING OTHER

ENVIRONMENTAL MANAGEMENT RELATED MEASURES AND FOR OTHER PURPOSES

WHEREAS, the pursuit of a comprehensive and integrated environment 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
No person, partnership or corporation shall undertake or
environmentally critical.
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. 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: (a) prepare the proper
land or water use pattern for said critical project(s) or area (s); (b) establish ambient environmental
quality standards; (c) develop a program of environmental enhancement or protective measures
against calamituous 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.

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. The 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. 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 or and/or a fine in an amount not to exceed
Fifty Thousand Pesos (P50,000.00) 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.

Section 11. Repealing Clause. 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.

Proclamation No. 2146, s. 1981

PROCLAIMING CERTAIN AREAS AND TYPES OF PROJECTS AS ENVIRONMENTALLY

CRITICAL AND WITHIN THE SCOPE OF THE ENVIRONMENTAL IMPACT STATEMENT SYSTEM
ESTABLISHED UNDER PRESIDENTIAL DECREE NO. 1586.

XXX

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the

powers vested in me by law, hereby proclaim the following areas and types of projects as
environmentally critical and within the scope of the Environmental Impact Statement System;

A. Environmentally Critical Projects

XXX

III. Infrastructure Projects

a. Major dams

b. Major power plants (fossil-fueled, nuclear fueled, hydroelectric or geothermal)

c. Major reclamation projects

d. Major roads and bridges

XXX
 DENR Administrative Order No. 2003- 30
SUBJECT: Implementing Rules and Regulations (IRR) for
the Philippine
Environmental Impact Statement (EIS) System

Section 16. Fines, Penalties And Sanctions

The EMB Central Office or Regional Office Directors shall impose penalties
upon persons or entities found violating provisions of P.D. 1586, and its
Implementing Rules and Regulations. Details of the Fines and Penalty
Structure shall be covered by a separate order.

The EMB Director or the EMB-RD may issue a Cease and Desist
Order (CDO) based on violations under the Philippine EIS System
to prevent grave or irreparable damage to the environment. Such
CDO shall be effective immediately. An appeal or any motion
seeking to lift the CDO shall not stay its effectivity. However, the
DENR shall act on such appeal or motion within ten (10) working
days from filing.

The EMB may publish the identities of firms that are in violation of the EIA
Law and its Implementing Rules and Regulations despite repeated Notices of
Violation and/or Cease and Desist Orders.
Procedural Manual for DAO 2003-30
This Procedural Manual for DAO 2003-30 is intended to clarify provisions of DAO 2003-30, PD
1586 and other applicable laws. Therefore, in cases of conflict, the provision of DAO 2003-30,
PD 1586 and other applicable laws shall prevail. It should be noted that this Manual contains the
general guidelines and procedures for the implementation of the Philippine EIS System, and
should be treated as a procedural guide for the general public including the proponent, EIA
consultants and other concerned entities. For technical reference, there are other (reference)
materials that deal mainly with the technical aspects of the EIA study such as: EIA Technical
Manual produced by the USAID-funded Industrial Environmental Management Project for
DENR, the textbook on Environmental Impact Assessment by Larry W. Canter, and the
numerous technical publications (e.g., handbooks, manuals, guides) of the US Environmental
Protection Agency, World Bank, Asian Development Bank, various UN agencies and many
others.

11. Fines, Penalties and Sanctions

The Directors of the EMB Central Office or Regional Office shall impose fines and penalties
upon persons or entities found violating provisions of P.D. 1586, and its Implementing Rules and
Regulations. Details of the Fines and Penalty Structure are presented in the succeeding sub-
sections.

The EMB Director or the EMB-RD may issue a Cease and Desist Order (CDO)
based on committed violations by the industry/company under the Philippine EIS
System to prevent grave or irreparable damage to the environment. Such CDO
shall be effective immediately.

An appeal or any motion seeking to lift the CDO shall not stay its effectivity. However, the
DENR shall act on such appeal or motion within ten (10) working days from filing. The EMB
may publish the identities of firms that are in violation of the EIA Law and its Implementing
Rules and Regulations despite repeated Notices of Violation and/or Cease and Desist Orders.

11.1 Scope of Violations Violations of Provisions of PD 1586 and the DAO 2003-30 are
classified as follows:

A. Projects which are Established and/or Operating without an ECC ECP and other
project or activity which has been classified as environmentally critical based on
the nature of activity/process posing significant risk, (i.e. hazardous waste disposal
facility, sanitary landfills, etc.) found operating without a valid ECC shall be
ordered closed, through a CDO, without prejudice to its applying for an ECC
pursuant to the process outlined in DAO 2003-30. Such issuance of a CDO comes after the
issuance of a Notice of Violation (NOV) and the conduct of a technical hearing . However, for
projects that pose danger to life and property, a CDO shall be immediately issued.
Proponents of critical projects or projects located in an environmentally critical areas operating
without an ECC will pay a P50,000.00 fine and payment will not justify the continuation or
resumption of development activities or operation, since such continuation of the
development/operation will only be authorized with the issuance of the ECC. The fine is simply
the basic penalty that, in certain instances, may be reinforced by a CDO. Respondent who is
found violating by operating without an ECC may still apply for an ECC, its ECC shall not be
acted upon until it ceases development and operations and pays all the fines imposed upon it.
Such proponent must be aware, however, that its operations prior to the issuance of its ECC may
be taken against it and result in denial of its ECC application.