S RECEIVED %

pave 3 JUL 2085

Republic of the Philippines

HOUSE OF REPRESENTATIVES

Quezon City, Metro Manita

TWENTIETH CONGRESS
First Regular Session

House Bill No,_ 1189

Introduced by Representative

BRIAN DANIEL POE LLAMANZARES, PhD, MNSA.

AN ACT ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATE,
POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

EXPLANATORY NOTE

The Philippines is a water-rich country. with total annual renewable water resources
amounting to 479 billion cubic meters (m'). This equates to an annual per capita availability of
6,100 m’—twice that of the rest of Asia and six times the global scarcity threshold of 1,000 m’,
Despite this abundance, many Filipinos still suffer from the lack of access to affordable, safe
drinking water and an effective sanitation system.

The Department of Environment and Natural Resources has acknowledged that the
government “...still scrambles to avert a water crisis during the summer season or when the
country experiences the El Nifio phenomenon.” This vulnerability was most evident during the
water crises of March 2018, which caused shortages across the east zone of Metro Manila, and
again in March 2019, when approximately 10,000 households in Metro Manila lost access to
water,



The country also lacks a strong “liquid-in, liquid-out" system. While some households
have access to potable water, only a small fraction receives adequate sanitation and sewerage
services. This imbalance contributes to the prevalence of water-borne and tropical diseases such
as leptospirosis, dengue, and typhoid. In fact, approximately 31% of illnesses in the Philippines
are water-related due to the lack of clean water supply and efficient sanitary infrastructure.

This persistent problem has severely impacted the health, sanitation, food security,
livelihood, and overall quality of life of Filipinos—especially the poor, who often have the least
access to clean water and yet pay disproportionately high costs to obtain it.

Although several laws related to water management exist, enforcement remains weak.
The water sector suffers from poor data management, fragmented regulation, and weak
coordination among water agencies, regulatory bodies, and local government units (LGUs).
Currently, there are four main regulatory agencies overseeing water services: the National Water
Resources Board (NWRB), the Local Water Utilities Administration (LWUA), LGUs, and
national agencies such as the Metropolitan Waterworks and Sewerage System (MWSS), along
with entities operating in industrial zones.

The current regulatory framework is disjointed and marked by overlapping mandates,
inconsistent economic regulations, and administrative fragmentation. This has led to
inefficiencies in the delivery of water and sanitation services nationwide. The absence of a lead
agency in the water sector has made unified planning and governance nearly impossible.

This bill seeks to address these issues by establishing two key institutions:

1. The Water Regulatory Commission — an independent, quasi-judicial body that will
rationalize the economic and administrative regulation of water utilities. Its powers will
include setting policy for water supply, sewerage, and septage management; issuing
licenses; approving and reviewing rates; reviewing and suspending contracts; initiating
investigations; and revoking issuances and memoranda that do not align with the
Commission’s mandate. Most importantly, it will ensure that consumer welfare is
prioritized.

2. The Department of Water Resources — a new executive department that will serve as
the central policy-making, planning, coordinating, implementing, and monitoring agency
for the water sector. It will oversee the integrated and sustainable management of the
country’s water resources and ensure their equitable and optimal use, with the ultimate
goal of achieving universal access to safe, adequate, and affordable water supply,
sanitation, and septage services.

Access to clean and affordable water, and living in communities free from human waste,
are basic human rights. This principle was affirmed by the United Nations General Assembly in
2010 through Resolution 64/292, which explicitly recognized the Right to Water and Sanitation.


To uphold this right for every Filipino, and to provide a coherent, accountable, and effective
framework for water governance, the immediate passage of this bill is earnestly sought.

eca~y

HON. BRJAN DANIEL POEZLAMANZARES, PhD, MNSA
Representative

FPJ Panday Bayanihan Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bil No. 1189

Introduced by Representative

BRIAN DANIEL POE LLAMANZARES, PhD, MNSA

AN ACT ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER
RESOURCE MANAGEMENT AND CREATING THE DEPARTMENT OF WATER
RESOURCES AND THE WATER REGULATORY COMMISSION, DEFINING THEIR
MANDATE, POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTER I
INTRODUCTORY AND GENERAL PROVISIONS
Section 1. Short Title. - This Act shall be known as the "Department of Water Resources Act”.

Sec. 2. Declaration of Policy. -

a, The State recognizes that water is fundamental to individual life, health, and dignity, and that
‘every person has a right to access safe and clean water for personal and domestic use;

b. The State affirms that the right of all Filipinos to safe and clean drinking water and sanitation
is essential to the full enjoyment of life and all human rights and hence, the attainment of a
nationwide water supply and sanitation services at reasonable rates must be pursued in an



orderly, rational, efficient, and dynamic manner;

c. The State emphasizes that water is a public good essential subject to conflicting forms of
economic, agricultural, and industrial activities, and is thus a scarce resource whose use must be
carefully regulated to prevent resource depletion and to ensure its availability to future
generations;

4. The State also maintains that water is indispensable to the existence and sustainability of
natural ecosystems, and as such its use must neither endanger the balance and health of the
environment nor compromise the rhythm and harmony of nature;

¢. The State further maintains that water resources are interconnected with climate, soil
condition, land use and land cover, forest cover, and other natural resources. As such, the
management of water will require inter-sectoral and inter-agency collaboration as well as
harmonization of laws, policies, institutions, and stakeholders; and

f. Finally, while the State maintains that all water resources remain under its full ownership,
control, and supervision, it emphasizes that it may enter into arrangements with the private
sector, as well as with civil society and community-based organizations, on the basis of
beneficial use, to ensure the efficient and affordable delivery of water supply, sanitation, and
septage services to end-users.

In accordance with these precepts, it is hereby declared the policy of the State to provide for the
rational, evidence-based, and integrated management of all water resources in the country to ensure
universal access to safe, adequate, and affordable water supply, sanitation, and septage services,
through a policy and regulatory regime that encourages innovation and responsible private sector
participation, while ensuring ecological preservation and environmental sustainability.

Sec. 3. Definition of Terms. - The following terms are hereby defined as follows:

a, Bulk water supplier - refers to any entity, natural or j 1, whether public or private,
supplying or intending to supply large quantities of raw or treated water to buyers who will use it
for own consumption, such as industrial companies, or for retail distribution to consumers such as
Water Districts or subdivisions. managing their own distribution _ network;
b, Flood Control - refers to methods, acts, and protocols to be observed in order to prevent and
reduce the detrimental and catastrophic effects of flood waters which include sediment-laden or
turbid flows, and-—ihyper-concentrated ~— flows. ~=—sor~—debris.-—_flows;
c. Flood Risk Management or FRM - refers to such acts of defining and determining the
appropriate methods, acts and protocols aimed at preventing and reducing the risk of incurring loss
of both life and property due to flood waters. Flood risk management consists of a cycle of
prevention, mitigation, adaptation, preparedness, and early warning, and, response and recovery.
‘The elements of FRM include: integrating land-use planning and coastal zone management into
water management; adopting a holistic approach so that FRM is part of wider risk or multi-hazard
management of earthquakes, landslides, and storm surges; managing risk and uncertainty as a
whole so it is not only hydrological uncertainties but also social, economic, and political



uncertainties in view of the human behavior and cultural dimensions of FRM;
d. Gender Equality - refers to the principle of asserting the equality of men and women and their
right to enjoy equal conditions realizing their full human potentials to contribute to and benefit
from the results of development, and with the State recognizing that all human beings are free and
equal in dignity and rights;
e. Infrastructure and publie works - refer only to wholly or primarily water-related projects and
shall not incorporate projects that do not otherwise fall within the purview of the objectives,
powers, and duties of the Department of + Water__—-Resources_ (DWR);
f. Integrated Water Resource Management or IWRM - refers to a systematic, collaborative and
multi-stakeholder process which promotes the coordinated development and management of
water, land, and related resources within geophysical boundaries in order to maximize the resultant
economic and social welfare in an equitable manner and without compromising the sustainability
of vital ecosystems;
g. Levels of water supply - refer to the following:

4. Level I or the point source is a protected well or a developed spring with an outlet but
without any distribution system, generally adaptable for rural and upland areas where the
houses are thinly scattered and is a facility which usually serves an average of 15
households.

2. Level II or the communal faucet system or stand posts is a system composed of a water
source, a reservoir, a piped distribution network, and communal faucets where one faucet
serves 4 to 6 households and is generally suitable for rural and urban fringe areas where
houses are clustered densely to justify a simple piped system.

3. Level III or the waterworks system or individual house connections is a system with a
water source, a reservoir, a piped distribution network and household taps, suitable for
densely populated urban areas.
h, License - refers to the Water Supply and/or Sanitation Services Operating License that
the Water Regulatory Commission (WRC) is authorized to grant and issue to Service
Providers;

i. Licensee - refers to the Service Provider to whom a License is granted or issued by the
WRC;

j. Missionary Water - refers to water supply or services to areas that have no existing safe
water supply and services due to geographic limitation or absence of economic and market
viability;

k. National Water Resources Management Framework Plan or NWRMEP - refers to
a policy document that incorporates a framework to guide the development and
‘management of all the country's water resources in the Philippines; the general strategies
to be pursued to ensure the sustainability of the resource and work towards the water
security; and provides top-level direction on the utilization of existing water resources in
line with national development plans, policies, and programs. The plan shall also include
a water infrastructure roadmap for all waters of the country as well as provide general


guidance on how these shall be financed within an integrated financing framework that can
draw on public, private and international development finance. The plan shall be reviewed
at the start of every new presidential administration to ensure its alignment with changing
times;

I. Regulatory Units - refer to the regulatory offices established under this Act to issue
Licenses authorizing the operation of Water Supply and Sanitation Services, and provide,
review, determine, fix, and approve water and sewerage tariffs, rates and charges that
Licensees may impose;
m. River basin - refers to an area of land drained by a stream or body of fixed water and
its tributaries having ~~ common_— outlet for _— surface run-off;
n. River Basin Organization or RBO - refers to multi-stakeholder organizations which
plan, coordinate, and monitor activities within a river basin cluster;
. Sanitation - refers to the provision of facilities and services for the safe management of
human excreta from the toilet to containment and storage and treatment onsite or
conveyance, treatment and eventual safe end use or disposal, and includes the safe
management of solid waste and animal waste;
p. Sediment management - refers to control of sediment erosion and deposition in rivers,
reservoirs, and coastal zones through non-structural and structural measures and control
works;

q. Sustainable Development Goals or SDGs - refer to the universal call to action to end
poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030
adopted by all United Nations = Member = States in 2015;
1. Septage - refers to sludge produced on individual onsite wastewater disposal systems,
principally septic tanks and cesspools;
s. Septage Management - refers to the provision of proper collection, treatment, and
disposal of septage;
t. Service Area - refers to the area covered by the water distribution system, sewerage, and
septage management services;
u. Service Provider - refers to any entity, natural or juridical, whether private or public,
providing or intending to provide levels II & III water supply, including bulk water
suppliers, sewerage, septage treatment, and disposal services for domestic, residential,
industrial, or commercial use;
v. Sewage - refers to water-carried waste in solution or suspension including sanitary waste
(waste products of normal living), commercial waste, industrial waste, agricultural waste,
and surface runoff conveyed by a sewerage system for treatment or disposal. For the
purposes of this Act, the definition of septage shall be included in the use of sewage;
w. Sewerage - refers to any system or network of sanitary pipelines, ditches, channels or
conduits including pumping stations, lift stations and force mains, service connections
including other constructions, devices or appliances appurtenant thereof, which includes
the collection, sanitary piping transport, pumping and treatment of water-borne human or



animal waste removed from residences, buildings, institutions and industrial and
commercial establishments to point of sewage treatment plant disposal;
x. Sewers - refer to pipes or such other works or structures which are built and constructed

to carry, transport, and dispose sewage;
y. Social inclusion - refers to the process of improving the terms for disadvantaged
individuals and == groups, = to. stake_~——part in society;

2. Tariffs - refer to such amounts which may be charged by licensees of water supply
and/or sanitation services for their services based on principles, standards, and guidelines
established by the DWR;
‘aa, Water Demand Management or WDM - refers to any method whether technical,
economic, administrative, financial, or social that will accomplish one or more of the
following:
a, Reduce the quantity or quality of water required to accomplish a specific task;
b. Adjust the nature of the task or the way it is undertaken so that it can be
accomplished with less water or with lower quality water;
c. Reduce the loss in quantity or quality of water as it flows from source, through use,
to disposal;
d. Shift the timing of use from peak to off-peak periods; and
. Increase the ability of the water system to continue to serve society during times
when water is in short supply.

bb. Water Distriet - refers to government-owned and controlled corporations organized
under Presidential Decree No. 198, as amended, created primarily to acquire, install,
operate, maintain and improve water supply and distribution systems for domestic,
industrial, and municipal uses of residents and to provide, maintain, and operate waste
water collection, treatment and disposal facilities within the boundaries of the district;
cc. Water pollution - refers to any alteration of the physical, chemical, biological, or
radiological properties of a water body resulting in the impairment of its purity or quality;
dd. Water Resource - refers to water under the ground or groundwater, water above the
‘ground such as surface water, run-offs, floods, stormwater and urban drainage, and treated
wastewater, water in the atmosphere or rain water, and the waters of the sea within the
territorial jurisdiction of the Philippines;
ce. Water Resources Regions - refer to the contiguous clusters of river basins which are
grouped together according to the hydrological boundaries, physiographic features, and
homogeneity in climate, whether or not straddling different local government units, for
administrative purposes under the DWR;
ff. Water Resources Regional Offices or WRROs - refer to the field office of the
Department which are to be established in accordance with the identified water resources
regions in the country;
gg. Water Service Providers or WSPS - refer to the water districts, any Local Government
Unit (LGU)-run water utility, Barangay Waterworks and Sanitation Association (BWSA),



Rural Waterworks and Sanitation Association (RWSA), cooperatives and private sector
who provides. water supply services. | to. | any _— given area;
hh. Water supply service - refers to any activity comprising Levels 1, Il and II] water
supply including bulk suppliers, suppliers to subdivisions and other water service
providers.

CHAPTER IL
THE DEPARTMENT OF WATER RESOURCES

Sec. 4. Establishment. - To carry out the policy and objectives declared under this Act, there is
hereby established the Department of Water Resources, hereafter referred to as "the Department",
which shall be established within one hundred twenty (120) days after the effectivity of this Act.

Sec. 5. Mandate and Objectives. - The Department shall be the primary policy, planning,
coordinating, implementing, monitoring, and administrative entity of the Executive Branch of the
government responsible for the comprehensive and integrated development and management of
the water resources of the Philippines, and their optimal allocation among competing uses, towards
achieving universal access to safe, adequate, and affordable water supply, sanitation, and septage
services.

Sec. 6. Powers and Functions. - The Department shall exercise the following powers and
functions:

1. Policy Making and Planning

a) Ensure that Integrated Water Resources Management (IWRM) is adopted as the strategic
framework for water management policymaking and planning in the country and
coordinate the implementation, promotion, revision and enhancement of IWRM plans;

b) Formulate policies, strategies, and targets in coordination with other relevant agencies
and stakeholders to meet the goals and objectives for water resource sustainability and
protection, water allocation and management, water supply and sanitation, water quality,
irrigation, hydropower, flood control, stormwater, and urban drainage;

©) Formulate and develop policies and strategies to promote universal access to safe,
adequate, affordable, and sustainable water supply, and improved sanitation services for
all Filipinos;

4) Establish guidelines and standards for quality drinking water and sanitation;

©) Develop and regularly update a comprehensive and integrated National Water Resources
Management Framework Plan (NWRMFP) and ensure its integration into existing land use


plans, within the context of a National Physical Framework Plan, to ensure the
harmonization of planning of water, land, subsurface, and air resources;

£) Review, approve, and provide oversight over all water-related development plans and
programs of any agency or local government unit (LGU) within the context of the National
Water Resource Management Framework Plan, and overall national plans and program;

g) Assist and provide the National Economic and Development Authority (NEDA) with
the required data and input from and for the water sector in the formulation of the country's
short-term and long-term strategic development plans and actions, and recommend the
adoption of general policies and guidelines for water resources development by the NEDA
Board;

bh) Strengthen and coordinate policy making and planning for flood management, integrated
with stormwater or urban drainage and appropriate retention or retarding basins in order to
harvest and reuse water, and to plan against, prevent, and minimize the detrimental and
catastrophic effects of flooding;

i) Develop and implement, in coordination with other relevant agencies and stakeholders,
effective codes, standards, benchmarks, and reasonable guidelines to ensure the safety of
all public, and private water structures in the country, and assure efficiency and proper
quality in the construction of water, sanitation, irrigation, hydropower, flood control and
drainage infrastructure;

{) Ensure that the planning and design of water infrastructure considers the highest
efficiency and most appropriate technology and quality, in accordance with national
development objectives;

k) Ensure that gender equality, social inclusion, environmental protection, climate
resiliency and disaster risk reduction are integrated into any water resources management
planning, policy making, and the design and construction of water infrastructure;

1) Act as the lead agency in ensuring the effective implementation of all laws and
implementing rules and regulations on water resources, including but not limited to the
followi Republic Act No. 9275, otherwise known as the "Philippine Clean Water Act
of 2004"; ii. Presidential Decree No. 1067, otherwise known as "The Water Code of the
Philippines ii. Sections 9, 10, 11, 12 & 13, Chapter II of Presidential Decree No. 856,
otherwise known as the "Code on Sanitation of the Philippines";

m) Review all water laws and implementing rules and regulations in the preceding section,
and to propose amendments thereof to Congress;


1) Enter any property of public dominion or any private land, building or enclave, whether
inhabited or not, or authorize a representative thereof, for the purpose of conducting
hydrologic surveys and investigations, including assessing and evaluating the conditions
of water facilities installed, and determining compliance with water laws and standards,
evaluating the conditions of water facilities installed, and determining compliance with the
NWRMFP, LWRMP, and other laws and regulations on water resource management as
defined by this Act; and

0) Issue and promote rules and regulations as may be necessary to implement and enforce
its powers and functions under this Act;

Il, Data Collection and Evidence Gathering

a) Establish, operate, and maintain a centralized water resources data center necessary for
the scientific survey and appraisal of surface and ground water potentials of the country
and determine the annual renewable water available per available water resources region;

b) Effect inter-sectoral, inter-agency and inter-departmental coordination on all aspects of
data gathering for water resources development planning and compel submissions of
statistics and data on water management with the aim of operationalizing the |WRM
framework;

©) Undertake river basin survey, inventory and appraisal of water and related resources and
develop comprehensive basin-wide plans of storage, retardation, and control to maximize
conservation and multipurpose use of water in the basin;

4) Collect, regularly update, monitor, and analyze water resources data including
climatology, and hydrologic and other water-related data;

) Conduct continuing hydrologic and hydrometeorological surveys and studies of the
country's renewable water supply, and establish, operate, and maintain observation station
networks with a view towards formulating long-term policies to balance the sustainability
and optimal multiple use of water resources, defining the hydrologic boundaries of basins
of the existing water supply sources and developing or updating and implementing
countrywide comprehensive basin-wide master plans;

f) Establish, operate, and maintain observation station networks and a centralized water
resources data center for the scientific survey and appraisal of surface and groundwater
potentials of the country, and determine the annual renewable water available per water
resources region;

2) Develop and continuously update a computerized decision support system that
incorporates data management system relating to acquisition and database, model base in


terms of physical design, planning and decision models, and user-friendly interface
concerning graphical and visualization tools; and

h) Promote Philippine participation in information sharing and education around best
practices in the international movements to achieve universal access to safe water and
improved sanitation and the integration of water, energy, food security and environment.

III. Water Resource Management and Allocation
a) Issue and enforce guidelines and rules and regulations on the following:
i, Abstraction, diversion, and development of the country's water resources;

ii, Equitable and optimal allocation of the country's water resources for domestic
and municipal water supply, irrigation, sanitation;

iii, Irrigation, hydropower, navigation, fisheries, livestock raising, industrial,
recreational, and other purposes;

iv. Determination and granting of water rights, including adjudication in cases of
conflicting uses, amending for this purpose Act No. 2152, otherwise known as "The
Irrigation Act", and other laws relating to the appropriation and utilization of
surface and groundwater: Provided, that the adjudication of conflicting water rights
shall be exercised by the Water Adjudication Board;

v. Such other coherent water protocols as may be necessary, including the operating
rules of all existing and future water infrastructure, legal and technical mechanisms
for intra-sectoral transfers and the standards of beneficial and priority uses of water
in times of crisis and national emergencies;

vi. Guidelines for the determination of costs and fees of all water rights, tariffs,
permits, and licenses through a science-based method which will accurately reflect
the current or future projected state of the water resource to be allocated: Provided,
that the actual methodology for setting rates and tariffs shall be the exclusive power
of the Water Regulatory Commission;

vii. Methods and standards for basic data collection and project identification,
formulation and planning, and appropriate sanctions to be imposed for non-
compliance;

viii, Standards for water quality, in particular drinking water, as well as sanitation,
septage, and water pollution; and


ix. Treatment and utilization of flood control, rain-water run-off, stormwater, and
urban drainage;

b) Exercise original jurisdiction over all disputes relating to appropriation, utilization,
exploitation, development, control, conservation and protection of all water resources, the
adjudication of which shall be enforced by the Water Adjudication Board;

) Regularly review regulations prescribed by any government agency pertaining to water
use, exploitation, development, and conservation or protection of waters, water resources,
and watershed or basin areas with respect to this Act;

4) Impose fees or charges, as may be deemed necessary for water resources conservation
and protection, such as:

i. Polluter's Fee, which shall be based on the net waste load depending on the
wastewater charge formula pursuant to Republic Act No. 9275;

ii, Raw water price, which shall take into account, among others, the scarcity of
water; and

iii, Appropriate structures for payment of environmental services;

©) Deputize LGUs to collect the national fees or charges for resource regulation within their
respective jurisdictions;

) Conduct and/or promote special studies and research on water economics and other water
resources development and management issues and concerns such as climate change,
weather modification, flood monitoring and modeling, environmental quality, and
desalination; and

g) Raise public awareness through information, education, and communications programs,
and build capacities for informed participation in water resources management at the
national and river-basin level.

IV. Administration and Management

a) Develop guidelines including rules of partnership among the Department, field offices
of national government agencies, LGUs, and other stakeholders, and facilitate the
establishment of multi-stakeholder river basin organizations (RBOs) per river basin, and
strengthen and support existing RBOs and monitor their activities;

b) Develop materials for capacity building and training on RBO development and conduct
training and workshops for prospective RBOs;


) Provide technical assistance to water users including farmers, communities, and LGUs
and other water service providers (WSP) whether directly or in coordination with other
agencies on all aspects of Integrated water resources management;

4) Conduct a performance audit of all water-related agencies and institutions, including but
not limited to The Local Water Utilities Administration (LWUA) and water districts,
MWSS, MWSS-RO and its concessionaires, LGU-run utilities. Tourism Infrastructure and
Enterprise Zone Authority, Philippine Economic Zone Authority, Bases Conversion and
Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA, shall be
conducted by the Department;

©) Respond to consumer complaints, and ensure the adequate promotion of consumer
interests;

£) Deputize agents, whether from the public or private sector, to assist in the performance
of any of the powers and functions of the Department;

g) Appoint, hire and maintain adequate staff and personnel, advisers and/or consultants
with suitable qualifications and experience, as necessary, and in accordance with the
Government Procurement Law.

a) Coordinate and integrate water resources development activities of the country within
the context of national plans and policies for social and economic development;

b) Coordinate with other government agencies, universities, academe, and private
professional groups in all aspects of data gathering, the conduct of special studies and
research on all related aspects of water resources management and development such as
climate change, environmental quality, desalination, and the development of operating
strategies, procedures, and protocols with accompanying computerized decision tools for
major water facilities;

©) Coordinate with the concerned and relevant agencies engaged in flood control, flood risk
management, and drought risk management; and;

4) Coordinate proactively with local government units to ensure the integration of water
resources development plans into their comprehensive land use plans (CLUPs),
Comprehensive Development Plans (CDPs) or Provincial Physical Framework and
Development Plan (PPFDP): Provided, That no zoning and land use plan shall become
effective and enforceable unless and until a certification of the integration of a water,
sewage, and sanitation resource management plan has been issued by the Department.
Should the Department have serious concerns affecting conservation and sustainability of



water supply, such concerns must first be resolved by the Department and the concerned
LGU and/or national agency: Provided further, that in the absence of such concerns, the
concerned LGU and/or government agency may, ninety (90) days from the submission of
its zoning and land use plan and after submitting to the Department a written notice of
compliance with the provision, proceed with the implementation of its zoning and land use
plan without prejudice to later integration of the water resource management plan for the
locality.

VI. Other Functions

a) Create, when necessary, water resource subsidiaries, instrumentalities, and entities to
engage in water transmission, water distribution, waste water treatment and management,
and sanitation in accordance with existing relevant laws, with the exception of the
formation of new water district which shall remain under the Local Water Utilities
Administration;

b) Enter into contracts, joint venture agreements or understanding, public-private
partnerships, and memorandum of agreements or understanding, either domestic or foreign
relating to investment and financing water-related projects, under such terms and
conditions as the Department may deem proper and reasonable subject to existing laws;

¢) Review existing guidelines appropriate for private sector participation in the water sector
and make needed recommendations to the Public Private Partnership (PPP) Center of
NEDA and other concerned agencies to promote and enable more PPPs in the sector; and

d) Exercise such other powers and functions necessary or incidental to the effective
administration and management of the country's water resources.

See. 7. Offices, Functions, and Personnel to be Completely Absorbed by the Department - In
addition to the powers and functions enumerated above, the following offices are hereby abolished,
and their respective powers and functions, and the corresponding personnel, funds and
appropriations, records, equipment, and property shall be absorbed by the Department:

a) The National Water Resources Board, whose mandate, powers, and functions are
provided in Presidential Decree No. 424, with the exception of its water utility regulation
units and functions, which shall be absorbed by the Water Regulatory Commission created
under Chapter VI of this Act;

b) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and
functions are found in Executive Order No. 510 and Executive Order No. 816, as amended:
Provided, that the Department of Environment and Natural Resources (DENR) shall


continue to have primary authority and responsibility for protecting the environment and
managing the country's watersheds;

©) The Manila Bay Task Force created under Administrative Order No. 16, s. 2019, and
the Manila Bay Coordinating Office (MBCO) of the DENR which was created by virtue
of DENR Special Order 2011-01, which were created to implement the Writ of Continuing
Mandamus issued by the Supreme Court in the case of Metro Manila Development
Authority, et al., v. Concerned Residents of Manila Bay (G.R. Nos. 171947-48, 18
December 2008 and 15 December 2011);

4d) The Flood Control Management Cluster of the DPWH;
) The Water Supply and Sanitation Unit of the DILG;

£) The Water Quality Management Section of the Environmental Management Bureau of
the DENR;

See. 8. Powers and Functions to be Transferred to the Department - The powers and functions
of the following agencies, bureaus, and units and the corresponding personnel, funds and
appropriations, records, equipment, and property are also hereby transferred to the Department:

a) The powers and functions of the National Pollution Control Commission with respect to
the adjudication of water pollution cases under Republic Act No. 3931 entitled, An Act
Creating the National Water and Air Pollution Control Commission, Presidential Decree
984 entitled Providing for the Revision of Republic Act No. 3931, Commonly Known as
the Pollution Control Law, and for Other Purposes, particularly with respect to Section 6
letters (e),(1), (g), i) (K) and Republic Act No. 9275, which shall be exercised by the Water
‘Adjudication Board;

b) The powers and functions of the Mines and Geosciences Bureau (MGB) of the DENR:
to conduct hydrological surveys and groundwater mapping;

c) The powers and functions of the Bureau of Design and Bureau of Research and
Standards of the DPWH with regard to conduct of hydrological surveys monitoring of
stream flow and other water data collection;

d) The powers and functions of the DPWH with regard to the planning, programming,
administration, monitoring, and management of the National Sewerage and Septage
Management Program (NSSMP);

€) The powers and functions of the DPWH with regard to the construction of water wells,
rainwater collectors and springs under Republic Act No. 6716, otherwise known as'An Act


Sec. 9.

Sec. 10, Secretary of the Department of Water Resources. - The authority and responsi

Providing for the Construction Of Water Wells, Rainwater Collectors, Development of
Springs and Rehabilitation of Existing Water Wells in All Barangays in the Philippines’;

{) The powers and functions of the DOH with regard to drinking water quality, in particular
the Philippine National Standards for Drinking Water of 2017 under DOH-Administrative
Order No. 2017-0010;

2) The powers and functions of the Bureau of Soils and Water Management concerned
with the utilization and management of water including rainmaking projects;

h) The powers and functions of the Tourism Infrastructure and Enterprise Zone Authority,
under Section 5(c)(1) of Presidential Decree No. 564, s. 1974, otherwise known as the
Philippine Tourism Authority Charter, Chapter IV, Subchapter IV-A, Section 69 (f) of
Republic Act No. 9593, otherwise known as the "Tourism Act of 2009" with regard to the
construction, acquisition, owning, lease, operation, and/or maintenance of dams,
reservoirs, water distribution systems, and sewerage systems: Provided, that the power to
set rates, tariffs, and charges shall be transferred to the Water Regulatory Commission;

i) The powers and functions of the Bureau of Fisheries and Aquatic Resources of the
Department of Agriculture (DA) with regard to the formulation of plans for the proper
management, development and utilization of aquatic resources of the country; and

) The powers and functions of the Biodiversity Management Bureau of the DENR, with
regard to the protection and conservation of natural wetlands such as lakes, marshes,
swamps.

Organization. - The Department shall be comprised of the following:

a) The Department Proper, which shall consist of the Office of the Secretary; the Offices
of the Undersecretaries and the Assistant Secretaries; the Water Adjudication Board, the
Bureaus; the Department Services; the Regional Water Resource Offices; and

b) The attached agencies.

ity

for the exercise of the mandate of the Department and for the discharge of its powers and functions
shall be vested in the Secretary of the Department, hereinafter referred to as the Secretary, who
shall be appointed by the President, subject to confirmation by the Commission on Appointments.
The Secretary shall:

a) Advise the President on the promulgation of executive or administrative orders,
regulations, proclamations and other Issuances relative to matters under the jurisdiction of
the Department;


b) Establish the policies and standards for the effective, efficient, and economical operation
of the Department pursuant to the President's guidelines;

©) Advise the President on the status of water management and supply, recommend to the
President the declaration of a state calamity in areas affected by water supply, and submit
proposals to restore normalcy in the affected areas;

4) Promulgate rules and regulations necessary to carry out the objectives, policies and
functions of the Department;

€) Exercise supervision and control over all bureaus and offices under the Department as
well as its officers and personnel;

£) Supervise all attached agencies and corporations in accordance with law;

2) Create regional offices and such other service units, bureaus, and divisions as may be
necessary;

h) Call upon and deputize any official, agent, employee, agency, or instrumentality of the
national and local government for any assistance that it may deem necessary to carry out
the purposes of this Chapter, subject to existing laws;

i) Represent the Department in contracts, awards, and the like;

|) Delegate authority for the performance of any power or function, as defined herein to
officials and employees under his direction as deemed appropriate;

k) Participate in meetings of the National Economic and Development Authority (NEDA),
of which he shall be a member;

1) Act as the Chairperson of the governing board of the agencies that were attached to the
Department; and

m) Perform such other duties and responsibilities as may be provided by law.

Sec. 11. Office of the Secretary. - The Office of the Secretary shall be composed of the Secretary
and his/her Immediate staff.

Sec. 12. The Offices of the Undersecretaries. - The Secretary shall be assisted by not more than
five (5) Undersecretaries, who shall be appointed by the President upon the recommendation of
the Secretary. The Offices of the Undersecretaries shall be comprised of the Undersecretaries and
their immediate staff.


‘The Secretary is hereby authorized to delineate and assign the respective functional areas of
responsibility of the Undersecretaries: Provided, that such responsibility shall be with respect to
the mandate and objectives of the Department: Provided further, that no Undersecretary shall be
assigned primarily to administrative responsibilities.

Within his/her functional area of responsibility, the Undersecretary shall:

1) Advise and assist the Secretary in the formulation and implementation of the policies,
plans, programs, and projects of the Department;

b) Supervise all the operational activities of the assigned units for which the Undersecretary
is responsible to the Secretary; and

©) Perform such other functions deemed necessary as may be assigned or delegated by the
Secretary to promote efficiency and effectiveness in the delivery of public services or as
may be required by law;

Sec. 13. Assistant Secretaries. - The Secretary shall be assisted by six (6) Assistant Secretaries to
be appointed by the President of the Philippines upon the recommendation of the Secretary: one
each for Planning and Policy Service, Decision Support System Service, Comptrollership and
Financial Management Service, Legal and Legislative Service, and Administrative and Human
Resources Management Service.

Sec. 14. Qualifications of the Department Secretary, Undersecretaries, and Assistant
Secretaries. - a) No person shall be appointed Secretary, Undersecretary, or Assistant Secretary
unless he/she possesses extensive knowledge of public administration and has a minimum of seven
(7) years of experience in the administration of water, sanitation, irrigation, flood control, and
drainage programs, preferably in a public agency;

b) At least one (1) of the Undersecretaries and at least two (2) of the Assistant Secretaries
shall be career officers;

¢) No officer, external auditor, accountant or legal counsel of any private company or
enterprises primarily engaged in the water industry shall be eligible for appointment as
Secretary, Undersecretary, or Assistance Secretary within two (2) years from his/her
retirement, resignation, or separation therefrom.

Sec. 15. The Water Resources Adjudication Board. - There is hereby created a Water Resources
‘Adjudication Board, hereafter referred to as "the Board” under the Office of the Secretary. The
Board shall exercise quasi-judicial powers granted to it under this Act.

Sec. 16. Jurisdiction. - The Board shall exercise original jurisdiction over the following:


a) All disputes relating to the appropriation, utilization, exploitation, development, control,
conservation and protection of waters; and the compliance of water service provider with the rules
and regulations set forth by the Department;

b) Enforcement of agreements between water service providers;
©) All cases concerning of water pollution under the following laws:

1. Republic Act No. 3931 entitled, An Act Creating The National Water And Air Pollution
Control Commission, Presidential Decree 984 entitled Providing For The Revision Of
Republic Act No. 3931, Commonly Known as the Pollution Control Law, And For Other
Purposes, particularly with respect to Section 6 letters (¢),(f), (g), @), (K); and

2. Republic Act No. 9275;

Sec. 17. Composition. -The Board shall be composed of the Secretary as the Chairperson, two (2)
Undersecretaries as may be designated by the Secretary, and three (3) other representatives from
other stakeholders to be designated by the Secretary as members.

Sec. 18. Powers and Functions. -The Board shall have the following powers:
a) Investigate and decide on complaints involving violations of this Act;
») Issue subpoena duces tecum and subpoena ad testificandum;

©) Cite any person or party in contempt for refusal to appear, testify or comply with the
lawful orders of the Adjudicatory Board in relation to any matter subject to Its
investigation;

d) Hear, receive evidence, and decide on cases falling within its jurisdiction;
) Promulgate Its own rules and procedures; and

f) Exercise such other powers as may be necessary to carry out Its duties and
responsibilities under this Act.

Sec. 19. Orders and Decisions. - Every order or decision rendered by the Adjudicatory Board
shall be In writing and shall state clearly and distinctly the facts and the law on which it Is based.
The Adjudicatory Board shall decide each case or application within thirty (30) days following its
formal submission for resolution. It shall publish and make available for public inspection all
decisions and final orders In the adjudication of contested cases or applications.

Sec. 20, Appeals Procedure and Prohibition Against Injunction. - a) The orders, rulings, and
decisions of the Adjudicatory Board shall become final and executory after fifteen (15) days from


receipt of such order, ruling, or decision, unless, prior to the lapse of this period, an appeal was
made with the Secretary of Water Resources;

b) All decisions where the penalty imposed Is a fine shall be immediately executory, except
upon the filing of a bond equivalent to the fine imposed or as may be fixed by the
Adjudicatory Board;

©) No injunction may be issued by any court or administrative agency to restrain any
proceeding before the Adjudicatory Board, or the implementation or execution of any
order, ruling, or decision of the Adjudicatory Board, except on the basis of a question of
law in a petition for certiorari brought before the Supreme Court.

See. 21. Bureaus. -The Department shall have the following Bureaus:

a) The Bureau of Water Quality Management shall exercise supervision and control over
all aspects of water quality management to ensure the sustainability of the country's water
resources and the protection of the environment, taking into account proper and Integrated
treatment of freshwater and wastewater within the whole process. For this purpose, the
Bureau shall exercise the following functions:

1. Establish water quality guidelines for freshwater and coastal/marine waters as basis

for classifying water bodies in the country. Specifically, develop water quality

indices or composite metrics to measure of the quality status and health of natural

water bodies in relation to ecological integrity and function;

Establish effluent standards for point sources of pollution;

Establish Internationally accepted procedures for sampling and analysis;

Prepare an integrated water quality management framework;

Prepare the ten-year water quality management plans for each water quality

management area as part of the River Basin Master Plans and in support of the

NWRMFP;

6. Classify groundwater sources and prepare a national groundwater vulnerability
map;

7. Classify or reclassify all water bodies according to their beneficial usages using the
established water quality guidelines established;

8, Issue permits, clearances and similar instruments pursuant to the Clean Water Act
of 2004;

9. Collect the wastewater discharge fees for all permittees;

10, Monitor the compliance of water discharge permittees with the effluent standards;

11, Regularly monitor the water quality of major water bodies in the country and
analyze the data to identify possible sources of pollution;

12, Issue notices of violations and/or cease and desist orders for those found in
violation;

yaen


13. File the needed cases against violators with the Water Adjudication Board;
14, Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives

'b) The Bureau of Flood Control and Drainage shall plan and design flood control and
drainage structures and facilities in accordance with technical standards, guidelines and
manuals. For this purpose. It shall have the following duties and responsibilities:

1, Formulate policy, strategies and programs on flood risk management in the context
of integrated flood management (IFM) which Integrates water, land, coastal zone
and multi-hazard management. In integrating land-use planning and water
management, the Department should harmonize and synthesize plans to enable the
sharing of Information between land-use planning and water management
authorities. In integrating hazard management, a holistic approach should be
adopted so that IFM should be part of a wider risk or multi-hazard management
system such as earthquake, landslides, fire, tsunami, and other calamities of even
gravity or similar nature;

2. Integrate climate change and disaster risk reduction and management in policies
and plans;

3, Prepare master plans of flood management and drainage in river basins in

coordination with the concemed water resources region and river basin

organizations;

Prepare master plans of urban drainage in cities/municipalities;

Prepare feasibility studies of recommended measures in the master plans;

Plan and design structural measures for flood control and drainage;

Implement and/or collaborate with concerned agencies on the nonstructural

measures;

Patrol and Investigate rivers Including the monitoring of stream flows;

Conduct post-disaster investigation and evaluation and damage assessment of flood

infrastructures after extreme events;

10. Conduct research and development on water and sediment-related disasters;

11. Develop design guidelines, criteria and standards on flood control and drainage
structures;

12, Provide technical assistance to other agencies, LCDs and other stakeholders;

13. Advise the Secretary on declaring flood control areas and recommend guidelines
for flood plain management plans in these areas; and

14, Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

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Sec. 22. The Bureau Directors. - The Bureaus of the Department shall be headed by a Bureau
Director who shall be responsible for efficiently and effectively carrying out the functions of the
Bureau concerned. The Bureau Director shall be assisted by one (1) Assistant Director.

Sec. 23. The Department Services. - The Department shall have the following services:

a) The Planning and Policy Service shall provide the Department with the capability to
undertake water infrastructure development planning and programming, and shall exercise
the following functions:

1
2

9.

Advise the Secretary on all matters relating to water resources planning;
Assist the Undersecretary for Planning and Policy on all matters related to the
specific functions of the position;

Formulate strategies and priorities for water resources management and
development consistent with national development objectives, and
undertake relevant surveys for development planning;

Develop and regularly update a comprehensive and integrated National Water
Resources Management Framework Plan and ensure its integration into existing
land use plans, within the context of a National Physical Framework Plan, to ensure
the harmonization of planning of water, land, subsurface, and air resources;
Coordinate river-basin planning following the integrated water resources
‘management framework and the river-basin approach;

Formulate or update existing River Basin Master or Comprehensive Plans which
includes all aspects of water management and development such as water supply
and sanitation, irrigation, flood control and stormwater or urban drainage, drought
risk management, water resource development systems and other public water
works projects. Including phasing of Implementation;

Identify based on the river basin master plan; priority packages for water
infrastructure development per river basin including water supply, sanitation,
irrigation, flood control and stormwater or urban drainage, drought risk
management, water resource development systems, and other public works
projects; package project proposals for funding and prioritize project
implementation and the allocation of funds and other resources; and undertake or
supervise and evaluate the conduct of feasibility studies and project preparation
thereof;

Evaluate and appraise all regional and inter-regional infrastructure water
development plans and programs as to their feasibility and consistency with
approved strategies and long and medium-term plans;

Initiate regular Department-wide planning exercises and act as the secretariat
thereof;

10. Gather, analyze, and organize needed statistical data and information;


11. Provide technical assistance related to its functions to the other services, bureaus
and the regional offices as needed;

12, Conduct of hydrologic and hydraulic surveys and assessments of surface waters;

13, Develop general criteria and standards on project investigation, formulation,
planning;

14, Develop guidelines and standards on social inclusion in water resources
management and ensure policies, programs, and plans are compliant with the
gender and development framework of the government;

15, Coordinate closely with PAGASA for rainfall and other climate data which shall
be considered in the planning for water resources development and management
and for various water infrastructure; and

16. Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

b) The Decision Support System Service shall provide the Department with water resource
management tools and computerized decision support system that incorporates data
management system relating to acquisition and database, and model base in terms of
physical, design, planning, and decision models Including services related to networking,
data management, and Information and knowledge or learning management systems for
administrative and nontechnical support for the Department. It shall provide the Secretary
timely reports on the status of various Department projects and activities. For this purpose,
it shall exercise the following functions:

1. Provide the Secretary the needed data and processed information to aid in policy
and management decisions under the mandate of the Department;

2. Publish available real-time raw water data as well as verified or validated water
data in print and/or electronic form, in tabular and graphical displays as time series
and/or spatial data through the use of the internet;

3. Conduct and publish in print and/or electronic form, standard data analysis such as
basic statistical analysis, trend analysis, analysis of runs, and cluster analysis;

4, Develop and continuously update water resource management, computerized
decision support system (DSS) that incorporates data management system relating
to acquisition and database, model base in terms of physical, design, planning and
decision models, and user-friendly interface such as graphical and visualization
tools. The DSS is composed of a measurement or data acquisition system;
information or database management system; analytical and numerical models for
design, planning, decision or evaluation purposes; and a user-friendly interface
which includes graphical interface or visualization tools;

5. Develop and maintain specific models to include the following: long-term
climatologic and weather forecasting model; watershed models and river-flood
plain models; groundwater models and coupled to surface water models; flood


7

forecasting model for major rivers; optimization-simulation and/or management
models for watershed conservation, conjunctive surface and groundwater use,
irrigation scheduling, normal and emergency operations of multi-purpose
reservoirs; and water quality and ecological models;

Develop and manage the management Information system and knowledge systems
of the Department including the retrieval and processing of monitoring Information
on all projects and activities of concem to the Secretary and the web portal, and
conduct systems and process engineering, software development, software
configuration management; develop and manage the Department's corporate
database, unified database for water industry, data warehouse, other water
information resources, library services and document management and arc!
services; develop and manage the Department's ICT infrastructure and provide
ICT-related services to the Department including computer networking and voice
communications services and data exchange; manage the literacy and training
services of the Department on various ICTs, knowledge management tools, and
applications; and
Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

©) The Administrative and Human Resource Service shall provide the Department with
services relating to human resources development, personnel, records, facilities
maintenance, medical and dental, security and property and procurement services, and shall
exercise the following functions:

1.

4.

Advise the Secretary on all matters relating to internal administration and human
resources management;

Prepare and implement an integrated personnel development plan that shall include
provisions for merit promotions, performance evaluation, job rotation, suggestions
and incentive awards systems, and health and welfare services;

Provide services related to human resources training, education and development
including manpower, career planning and forecasting, and development of
indigenous training materials;

Develop, establish and maintain an efficient and cost-effective property
procurement system and facilities and coordinate or otherwise interface with
relevant agencies, whether government or private, for the purpose of developing or
upgrading the system;

Secure and maintain necessary Department facilities, and develop, establish, and
maintain an efficient and effective security system covering, among others,
personnel, physical installations, equipment, documents and materials including the
conduct of security Investigations;


6. Coordinate with the appropriate government agencies for a more efficient conduct
of administrative processes;

7. Develop, establish, and maintain an efficient records system;

8. Provide assistance in its area of specialization to the Department Proper, bureaus
and regional and water district offices and, when requested, the government
agencies and corporations attached to the Department; and

9, Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

€) The Legal and Legislative Service shall provide the Department with services on such
legal affairs as contract letting and litigation, legal and legislative research, complaints and
investigation, legal counselling and other matters of law, and shall exercise the following
functions:

1. Advise the Secretary on all matters relating to legal and legislative affairs;

2. Prepare Department contracts and legal instruments, review and Interpret all
contracts and agreements entered into by the Department and evaluate all legal
proposals;

3. Conduct administrative investigation and the review of administrative charges
against officers and employees of the Departmer

4. Exercise functional jurisdiction over the legal staffs of Regional Offices;

5. Provide legal assistance to the Department Proper, the bureaus and regional offices
and when requested, the attached corporations;

6. Develop and prepare the Department's Legislative Agenda, recommend
presidential certification of the urgency of priority water bills, and other water-
related legislations;

7. Coordinate and maintain linkages among the various offices, bureaus, regional
offices and attached agencies to the DWR along with other government agencies
on policy matters affecting the Department's mandate in relation to legislation;

8. Maintain effective liaison with the Congress regarding congressional Inquiries, and
enactment of water-related laws;

9. Monitor the progress of the Department's priority or certified bills to ensure their
passage; and

10. Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

4) The Comptrollership and Financial Management Service shall provide the Department
with coordinated services relating to financial systems and procedures, budget, cash,
accounting and all financial housekeeping matters, and shall exercise the following
functions:


. Advise the Secretary on all matters relating to the accounting of government

‘expenditures and receipts, budgeting and cash management, project finances and
financial systems and procedures;

Prepare budget proposals and pursue formal budget authorizations, undertake
budget execution, and prepare and submit all appropriate reports to the proper
offices;

Develop and maintain accounting, financial and assets management systems,
procedures and practices in the Department Proper, Bureaus and Regional Offices;
Review and appraise systems and procedures, organizational structure, assets
management practices, accounting, and other records, reports, and performance
standards such as budgets and standard costs of the Department, bureaus, and
regional offices;

Provide assistance in Its area of specialization to any unit of the Department and,
when requested, to government corporations and councils attached to the
Department; and

Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

) The Resource Allocation Service shall provide the Department with services on resource
allocation and shall exercise the following functions:

1
2.

‘Advise the Secretary on all matters relating to water resource allocation;
Determine, grant and regulate water rights for the appropriate, optimal and
sustainable use of surface and ground water;

Determine, evaluate and grant waterworks and sewerage franchises;

Investigate violations of the water rights and the Water Code, and Impose the
appropriate sanctions in accordance with existing laws, rules and regulations as
well as future rules and regulations which the Department shall promulgate;
Adjudicate water use conflicts; and

Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

f) The Internal Audit Service shall regularly conduct a comprehensive audit of various
Department activities, and shall report directly to the Secretary, and shall exercise the
following powers and functions:

Advise the Secretary on all matters relating to management control and operations
audit;

Conduct management and operations performance audit of Department activities
and units, and determine as to the degree of compliance with established objectives,


policies, standards, methods and procedures, government regulations, and
contractual obligations of the Department;

Analyze and evaluate management deficiencies and assist top management to solve
problems by recommending realistic courses of action; and

Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

g) The Public Affairs Service shall enhance government relations with all stakeholders
including the media and shall ensure that women, men, elderly, and people with disabilities
shall be consulted, organized and can take active part in all aspects of water resources
development and management activities. It shall also lead the planning and organizing of
the special events of the Department, and shall exercise the following functions:

1
2.

Peay

14,

15.
16.
17.

Advise the Secretary on matters pertaining to public affairs services;

Develop and supervise the implementation of comprehensible communications
programs on relevant policies, programs, and plans of the Department;

Produce and supervise the dissemination of communication materials In line with
the priorities of the Department and the national government public Information
programs;

Conduct public opinion and attitude surveys to identify the interests and concerns
of the stakeholders of the Department;

Establish editorial policies on print and broadcast media;

Establish and maintain linkages with the tri-media and presence in social media;
Coordinate the conduct of interviews and news conferences;

Act as spokesperson for the Department;

Coordinate with various Department units, concerned government agencies, tri-
media and other stakeholders on matters related to the above-enumerated functions;
Coordinate with the appropriate national government agencies involved in public
formation affairs.

. Conduct public consultations and discussions;
. Develop and disseminate relevant and appropriate materials and programs for

public Information and education, as well as advocacy campaign;

. Conduct seminars and workshops involving the LGUs and the general public on

current water issues and problems;

Conduct capability building seminars of various stakeholders to promote
meaningful participation the Department's policy making, planning,
development and implementation of various programs and projects;

Coordinate the organization and promotion of special events and water exhibits;
‘Act as the focal office for all water-related events; and

Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.



Sec. 24 Attached Agencies. - The Department shall exercise administrative supervision over the
following agencies for purposes of policy and program coordination, monitoring, and evaluation:

a) The Water Regulatory Commission established under Chapter VI of this Act;

b) The LWUA, whose mandate, powers and functions are defined In Presidential Decree
No. 198, as amended otherwise known as the Public Water Utilities Act of 1973 shall be
transferred from the Department of Public Works and Highways and attached to the
Department: Provided, that the powers and functions of LWUA, and the corresponding
personnel, funds and appropriations, records, equipment, and property thereof, pertaining
to the establishment of water districts, system exclusion. Integration, joint investment and
operation, district annexation and de-annexation, and the regulation of their tariffs, rates,
and charges shall be transferred to the Water Regulatory Commission. The LWUA shall
continue to be primarily a specialized lending institution for the promotion, development,
and financing of local water utilities and other Service Providers. In the implementation of
its functions, the LWUA shall:

1. Prescribe minimum standards and regulations in order to assure acceptable
standards of construction materials and supplies, maintenance, operation, personnel
training, accounting, and fiscal practices for local water utilities;

2. Furnish technical assistance and personnel training programs for local water
utilities; c) The Metropolitan Waterworks and Sewerage System (MWSS), whose
mandates, powers, and functions are defined under Republic Act No. 6234, as
amended entitled. An Act Creating the Metropolitan Waterworks And Sewerage
System and Dissolving the National Waterworks and Sewerage Authority and for
Other Purposes, shall be transferred from the DPWH and attached to the
Department: Provided, that powers of the MWSS to periodically fix water rates and
sewerage service fees under Sections 2(c) and 3(h) of R.A. No. 6234, and the
corresponding personnel, funds and appropriations, records, equipment, and
property thereof shall be transferred to the Water Regulatory Commission. The
MWSS shall continue to facilitate the exercise by the concessionaires of its agency
powers, carry out accounting and notification functions, monitor, report, and
administer loans, and perform related functions in connections with existing
projects, manage and dispose Its retained assets, and manage and operate the
Umiray-Angat Transbasin Project; d) The Laguna Lake Development Authority
(LLDA), whose mandate, powers and functions are defined under Republic Act No.
4850, as amended entitled. An Act Creating the Laguna Lake Development
Authority, Prescribing Its Powers, Functions and Duties, Providing Funds Therefor,
and for Other Purposes shall be transferred from DENR and attached to the
Department: Provided, that the power to set rates and fees for the use of the lake
waters and its tributaries for all beneficial purposes under Section 4-B, and the



corresponding personnel, funds and appropriations, records, equipment, and
property thereof shall be transferred to the Water Regulatory Commission:
Provided, further: that the rates fees set by the WRC shall no longer be subject to
the approval of the President of the Philippines. The LLDA shall continue to serve
as the lake management and development authority similar to a multi-stakeholder
river basin organization and shall ensure the implementation of the Laguna Lake
Master Plan which shall be updated by the Department to ensure alignment with
the NWRMFP; e) The National Irrigation Administration (NIA), whose mandates,
powers and functions are defined under Republic Act No. 3601 as amended, is
hereby transferred from the Department of Agriculture to the Department:
Provided, that the power to set irrigation service fees for farmers with more than
eight (8) hectares of land, corporate farms, and plantations drawing water for
agricultural crop production; and fishponds and other persons, natural or juridical,
drawing water for non-agricultural purposes, or using the irrigation systems as
drainage facilities, shall be subject to the guidelines of the Department; and f) Any
other agency performing water resources management conservation, and protection
functions which the President deemed necessary to be transferred to the
Department.

Sec. 25. The Water Resources Regional Offices. - Water Resources Regional Offices, which
shall be organized per water resources region, shall be responsible for Implementing the mandates,
powers, and duties of the Department at the field level, except for policymaking which will be
vested solely with the Central Office. The master planning for the nearby river basins such as the
Pasig-Marikina-Laguna Lake-Cavite, shall be the responsibility of the Central Office. For this,
purpose, the duties and responsibilities of the WRRO shall be as follows:

a) Formulate or update and coordinate the river basin master plans for river basins within
Its jurisdictions ensuring consistency with the NWRMFP;

'b) Advocate and strongly support the creation and functioning of multi-stakeholder River
Basin Organizations (RBOs) and serve as the secretariat of the said RBOs;

c) Undertake and evaluate the planning, design, and work supervision functions of the
Department for the water infrastructures within the region;

4) Ensure the implementation of laws, policies, programs, rules, and regulations regarding
the abovementioned infrastructure as well as public and private physical structures;

©) Provide technical assistance related to the water-related functions of other agencies
within the region especially the local government;


) Coordinate with other departments, agencies. Institutions and organizations, especially
local government units within the region In the planning and implementation of the river
basin master plans;

g) Conduct continuing consultations with the local communities, take appropriate measures
to make the services of the Department responsive to the Central Office and recommend
such appropriate actions as may be necessary; and

h) Perform such functions and activities, as may be mandated by law, which are necessary
for the effective performance of the above mentioned objectives.

‘The Department shall retain existing Project Management Offices as may be required, which shall
be under the supervision and control of the appropriate Water Resources Regional Office Director,
unless otherwise determined by the Secretary for reasons of supra- regional scope, magnitude and
multi-functional coverage.

Sec. 26. The Water Office Regional Directors. - The Water Resources Regional Offices shall be
headed by a Water Resources Regional Director who shall be responsible for efficiently and
effectively carrying out the duties and responsibilities of the Office.

Towards this end, the Water Resources Regional Director shall, within his or her defined powers
exercise functional and administrative supervision over ail units within the region including the
authority to commit their resources and personnel to integrated regional water resources
management, water supply and sanitation management, and flood control and flood risk
management Initiatives.

The Water Resources Regional Director shall also perform such other related duties and
responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

The Water Resources Regional Director shall be assisted by two (2) Assistant Water Resources
Regional Office Directors who shall exercise supervision over: (1) the planning, project design
and evaluation function and (2) technical assistance to the River Basin Organizations within the
water resources region.

CHAPTER II
THE NATIONAL WATER SECTOR POLICY COUNCIL

Sec. 27. Creation of the National Water Sector Policy Council. - There is hereby established a
National Water Sector Policy Council (NWSPC) which shall exercise policymaking, coordination,
harmonization, integration, supervision, monitoring and evaluation functions with regard to water,
land, subsurface, air, and other natural resources. The Council shall be composed of the following
members:


a) The Secretary of the Department of Water Resources as Chairperson;

b) The Director-General of the National Economic and Development Authority as the
Vice-Chairperson;

¢) The Secretary of the Department of Health (DOH);

4) The Secretary of the Department of the Interior and Local Government (DILG);

&) The Secretary of the Department of Energy (DOE);

f) The Secretary of the Department of Agriculture (DA);

8) The Secretary of the Department of Social Welfare and Development (DSWD);

h) The Secretary of the Department of Public Works and Highways (DPWH);

i) The Secretary of the Department of Budget and Management (DBM);

J) The Secretary of the Department of Environment and Natural Resources (DENR);

k) A Representative from the Office of the President (OP); and

1) The Chairperson of National Commission on Indigenous Peoples (NCIP) as members.

The Staff of the Department shall serve as Secretariat to the Board.

Sec. 28. Powers and Fun

ns. ~The powers and functions of the Board shall be as follows:

a) Approve the National Water Resources Management Framework Plan (NWRMFP), and
to ensure its consistency with the National Physical Framework Plan, which shall serve as
a principal guide to water management efforts in the country and shall be reviewed on a
five (5)-year interval, or as may be deemed necessary, in order to ensure its relevance to
the times;

b) Ensure harmonization of all policies involving water, land, subsurface, air and other
resources which are connected to the water sector;

c) Ensure a multi-stakeholder participation in the development, updating, and sharing of
Information system as policy, planning and decision-making tools;

‘The powers and functions and the corresponding personnel, funds and appropriations, records,
equipment, and property of the NEDA Infrastructure Committee-Subcommittee on Water
Resources, as established under NEDA-Infrastructure Committee (INFRACOM) Resolution No.
2, s. 2008, shalll also be absorbed by the Department.


CHAPTER IV
INTERDEPARTMENTAL RELATIONS AND INSTITUTIONAL ARRANGEMENTS
OF THE DWR

See. 29. Interface And Institutional Arrangements With Other Agencies. - a) The Department
of Environment and Natural Resources (DENR) shall continue to have primary authority and
responsibility for protecting the environment and managing the country's watersheds;

b) The Department of Energy (DOE) and the National Power Corporation (NPC) shall
continue to have primary authority and responsibility for setting up and running
hydropower plants, but shall ensure that any hydropower plant development plans are
consistent with the National Water Development and Management Plan;

©) The Department shall coordinate with the Department of Agriculture (DA) to ensure
agricultural development that reduces sources of long-term pollution for surface water and
groundwater, and agricultural and industrial economic development that employs water
efficiency, water recycling or reuse and the appropriate treatment of wastewater;

4) The Department shall coordinate with the National Disaster Risk Reduction
Management Council (NDRRMC) to ensure that Its plans and designs for flood control,
flood risk management and drought risk management are aligned with the objectives and
plans of the said Department;

€) The Department shall coordinate with Climate Change Commission (CCC), PAGASA,
and NAMRIA for scientific studies, integrated surveys, mapping, charting and decision
support systems;

£) The Department shall coordinate with the Department of Tourism (DOT) on recreational
use of water resources;

8) The Department shall coordinate with the Philippine Reclamation Authority and
economic zone authorities on water resources development and water requirements within
reclamation areas and economic zones, respectively; and

h) The Department shall coordinate with relevant government agencies, Including Local
Government Units (LGUs) for development projects and to ensure cross-cutting
collaboration between and among all water subsectors and facilitate inter-agency subsector
coordination, strategic development, planning, monitoring and provision of technical,
institutional and financial capacity building support to their different stakeholders at the
water subsector level.

CHAPTER V
LOCAL GOVERNMENT PLANNING INTEGRATION


Sec. 30. Local Water Resource Management Council. - There is hereby created and established
in every LGU a Local Water Resource Management Council, hereinafter referred to as the
"LWRMC".

Sec. 31. LWRMC Composition. - The LWRMC shall be composed of, but not limited to, the
following:

a) The Local Chief Executives, Chairperson;

b) The Local Planning = and Development ~— Officer, member;
c) The Head of the LWRMO, member;

d) The Head of the Local Disaster Risk Reduction Management Office, member;
€) The Head of the Local Social Welfare and Development Office, member;

) The Head of the Local Health Office, member;

g) The Head of the Local Sanitation Office, member;

h) The Head of the Local Solid Waste Management Office, member;

i) The Head of the Local Environment Office, member

{) The Head of the Local Agriculture Office, member;

k) The Head of the Local Engineering Office, member;

1) The Head of the Local Budget Office, member;

m) The Provincial Director/City/Municipal Chief of the Phil
member;

pine National Police (PNP),

n) The President of the Association of Barangay Captains (ABC), member

0) One (1) member of the Board of Directors from an LWD within the province, city, or
municipality;

p) One (1) Civil Society Organization (CSO) representative, member; and q) One (1)
private sector representative, member.

See. 32. LWRMC Functions. - The LWRMCs shall have the following functions:

a) Formulate and implement a comprehensive and Integrated Local Water Resource
Management Plan (LWRMP) which shall serve as the principal guide to water management


efforts within the territorial jurisdiction of the LCD following the policies and framework
of the NWRM. The LWRMP shall be reviewed on a five (5)-year interval, or as may be
deemed necessary, in order to ensure its relevance to the times;

b) Submit the LWRMP and progress reports on the LWRMP to the WRRO;

) Monitor and evaluate the implementation of the LWRMPs and regularly review and test
the plan consistent with the policy of the NWSPC;

d) Ensure the integration of water resource management into local development plans,
programs, and budgets as a strategy in sustainable development of water supply; and

€) Convene once every three (3) months or as necessary.

Sec. 33. Local Water Resource Management Office (LWRMO). - There shall be established an
LWRMC in every province, city and municipality, which shall be responsible for setting the
implementation and coordination of LWRMPs within their territorial jurisdiction. The LWRMO
shall be under the office of the governor, city or municipal mayor. The LWRMOs shall be initially
organized and composed of a Head Officer to be assisted by three (3) staff responsible for: (I)
administration and training; (2) research and planning; and (3) operations. The LWRMO shall
perform the following functions:

a) Design, program, and implement activities consistent with the LWRMP;
b) Facilitate communications between the LGU and the WRRO;

c) Serve as secretariat and arm of the LWRMC;

4) Facilitate trainings and seminars between the LWRMC and the WRRO on water
resource management;

©) Prepare and submit to the local Sanggunian through the LWRMC and the annual
LWRMP and budget, and the enactment of local ordinances consistent with the LWRMP
and the requirements of this Act;

{Facilitate joint programs and activities between the LGU and the WRRO;

g) Gather, record, and consolidate Information relating to water resource management in
its respective territorial jurisdiction, and transmit the information to the WRRO;

h) Present the consolidated information on water resource management in the LWRMC
meetings;


i) Establish linkages and networks with other LGUs for water resource management as
required by the LWRMP;

j) Disseminate Information and raise public awareness about water resource management;
k) Submit progress reports on the implementation of the LWRMP to the LWRMC;
1) Mobilize resources and personnel necessary to implement the LWRMP;

m) Develop, strengthen and operationalize mechanisms for partnership or networking with
LWDs, local communities, and the private sector;

n) Coordinate other water resource management activities; and

0) Act on other matters that may be authorized by the LWRMC.

Sec. 34, Exemption of Local Government Units within Metro Mai Local Government
Units within Metro Manila shall be under the Central Regulatory Unit of the Commission, and are
hereby exempted from the provisions of this Chapter.

Sec. 35. Penalties for Non-Compliance. - Failure of the LWRMC and LWRMO to perform its
respective functions under this Chapter shall subject the responsible members or employees to the
appropriate civil, administrative, and criminal liabilities provided in this Act and under existing
laws.

CHAPTER VI
THE WATER REGULATORY COMMISSION

Sec. 36. Establishment - There is hereby created and established an Independent, quasi-judicial
regulatory body to be known as the Water Regulatory Commission, hereinafter referred to as "the
Commission", which shall be organized within one hundred twenty (120) days after the effectivity
of this Act. The Commission shall have a Board of Commissioners, and shall be vested with
powers and functions, as conferred and set forth hereunder.

“The Commission shall be placed under the administrative supervision of the Department of Water
Resources (DWR) as an attached agency.

Sec. 37. The Regulatory Units. - The Regulatory Units of the Commission shall be composed of
the Regional Regulatory Units and the Central Regulatory Unit. The Regional Regulatory Units
shall be established by the Commission in accordance with the rules, regulations, guidelines, and
standards that the Commission shall issue, and as provided in this Act.

The economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, PEZA, and
TIEZA are hereby transferred to the Commission, and shall collectively comprise its Central


Regulatory Unit for Water Supply and Sanitation Services that: (a) provide services to more than
one province; and (b) are owned, operated and/or maintained by special economic zones and Metro
Manila concessionaires.

Sec. 38. Powers and Functions of the Commission. - The overall authority and powers of the
Commission shall cover and apply to all Service Providers, whether private or public, providing
or intending to provide levels II & III water supply, including suppliers to subdivisions and/or
other Service Providers, sewerage, and/or septage treatment and disposal services for domestic,
residential, institutional, industrial or commercial use. The Commission shall exercise the
following powers and functions:

a) Issue and promulgate rules, regulations and guidelines as may be necessary to implement
and enforce its powers and functions under this Act;

'b) Promulgate and enforce just and reasonable technical standards, classifications and
measurements of service;

©) Appoint the central and regional regulators;

4) Establish rules and regulations to monitor, avoid, and provide remedies for, any market
power abuse or anti-competitive or discriminatory act or behavior by or against any
participant in the water supply and sanitation sector. Upon finding that a market participant
has engaged in, or fell victim to such act or behavior, the Commission shall act to stop
and/or redress the same. Such remedies may, without limitation, include the imposition of
price controls, issuance of injunctions, requirement of divestment or disgorgement of
excess profits, invalidation of contracts and imposition of fines and penalties pursuant to
this Act.

€) Adopt and require that books, records, and accounts be kept and maintained in
accordance with the prescribed uniform accounting system;

4) Fix and determine proper and adequate rates of depreciation of properties and equipment
used in Water Supply and Sanitation Service/s;

g) Impose and collect annual levies determined as a percentage of gross revenue accruing
in relation to the licensed activities, and reasonable fees and surcharges as may be
necessary for achieving the purposes, powers, and functions of the Commission;

h) Require the submission reports of finances and operations, verified under oaths by the
owner or president and secretary of the Licensee;

i) Determine and require the monitoring and submission of such data, statistics and other
information from the Regulatory Units and any or all licensees as may be necessary for the



effective and efficient exercise of its duties, functions, powers and responsibilities:
Provided, that such data, statistics, and other information shall also be submitted to the
Department for integration in the centralized database on water resources;

J) Investigate, motu propio or upon complaint in writing, any matter concerning the
operation of the service and issues on price manipulation and anti-competitive behavior;

k) Impose penalties and fines against any Licensee or against its owners, directors, officers,
agents or representatives for any violation of this Act or of the license, order, rule regulation
or requirement issued by the Commission;

1) Require any Licensee to pay the actual expenses incurred by the Commission in any
investigation if it shall be found that a Licensee violated any provision of this Act or of the
license, order, rule regulation or requirement issued by the Commission;

m) Advise, apprise, and coordinate with the Department of Water, the National Water
Policy Council, and other relevant agencies of the national or local government on any
‘matter relating to Water Supply and/or Sanitation Services;

1) Deputize agents, whether from the public or private sector, to assist in the performance
of any of the powers and functions of the Commission;

©) Appoint an interim or temporary management committee upon appeal and after due
hearing, to ensure continuity of service in cases a Licensee fails to meet conditions of the
license and the concemed Regulatory Unit fails or refuses to appoint an. interim
management committee as provided in the following section;

P) Appoint, hire and maintain adequate staff and personnel, advisers, and/or consultants,
with suitable qualifications and experience, as necessary;

4g) Exercise original and exclusive jurisdiction over all cases contesting rates, fees, fines
and penalties imposed by the Regulatory Units in the exercise of their powers, functions
and responsibilities, as provided under this Act, and over all cases involving disputes
between and among participants or stakeholders in the Water Supply and/or Sanitation
Services; and

+) Such other incidental powers and functions as may be necessary to attain the objectives
of this Act,

Sec. 39. Powers and Functions of the Regulatory Units. - The Regulatory Units of the
‘Commission shall have the following powers and functions:


a) Issue Licenses authorizing the operation of Water Supply and/or Sanitation Services in
any specified area or areas within the Philippines;

b) Impose fines, charges, and other penalties upon any Provider and/or its officers and
stockholders who shall fail or refuse to register and/or obtain a License prior to operation
or commencement of business, as provided hereunder;

¢) Review, determine, fix, and approve, consistent with the rules, guidelines, procedures
and methodologies which the Commission shall provide, proposed water and sewerage
tariffs, rates and charges that Licensees may impose upon their customers/consumers;

4) Appraise and value property and equipment used by Licensees in providing water supply
and sanitation service/s;

€) Enforce technical, financial, and other performance standards set by the Commission for
licensees/utilities;

f) Respond to consumer complaints and ensure the adequate promotion of consumer
interests and investigate motu propio price manipulation and anti-competitive behavior;

8) Investigate accidents directly or indirectly arising from or connected with the
maintenance or operation of the service, and make such order or recommendation as the
public interest may warrant;

hh) Upon petition or motu propio, where its determination public interest so dictates, require
the review and/or approval of contracts or agreements that may impact on the tariff and
rates of service provision entered into by Service Providers;

i) Require the submission of reports, plans, and other documents that define the
performance targets of the licensees or utilities, and regular accomplishment reports;

j) Impose and collect annual levies determined as a percentage of gross revenue accruing
in relation to the licensed activities, and reasonable fees and surcharges as may be
necessary for achieving the purposes, powers and functions of the regulator;

k) Conduct benchmarking and monitor the performance of licensees or utilities under their
jurisdiction, and publish reports detailing the results thereof, as may be necessary or
required by the Commission;

}) Amend, modify, suspend or revoke any License issued by them, after due notice and
hearing, on any of the following grounds:


1. When the facts and circumstances on the strength of which the license was issued
have been materially misrepresented or has materially changed;

2. Where the Licensee has failed to meet or comply with terms, conditions and
performance targets, including but not limited to service expansion, that may have
been set in the license;

3. Where the Licensee is found to be manifestly inefficient in the operation of or
provision of Water Supply and Sanitation services in its area; or

4, When the Licensee thereof has violated or willfully refused to comply with any
order, rule or regulation of the Commission or any provision of this Act; m) Appoint
an interim management committee to ensure continuity of service in case a
Licensee fails to meet the conditions of the license; and n) Submit performance
plans and reports as required by the Commission.

Sec. 40. Composition of the Water Regulatory Commission. - a) The Commission shall be a
collegial body composed of five (5) full-time members consisting of a Chairperson and four (4)
members, who shall all be appointed by the President of the Philippines. All members of the
‘Commission must be citizens and residents of the Philippines, at least thirty five (35) years of age,
and of good moral character, recognized integrity and competence in the field of law, business,
commerce, finance, accounting or public administration, water or utility economics, management,
physical or engineering services, hydrology and other related services, with at least three (3) years
actual and distinguished experience in their respective fields of expertise. Provided, that out of the
four members of the Commission, at least one (1) shall be a member of the Philippine Bar with at
least ten years of experience in the active practice of law, and at least one (1) shall be a certified
public accountant with at least ten years of experience in active practice;

b) The term of office of each member of the Commission shall be seven (7) years: Provided,
that among the members first appointed, the Chairperson shall serve for a period of seven
(7) years, two (2) members shall serve for five (5) years and the other two (2) members
shall serve for three (3) years: Provided further, that any member whose term has expired
as specified herein shall serve as such until his successor shall have been appointed and
qualified: Provided furthermore, that any appointment to fill a vacancy in the Commission
arising from death, removal, retirement or resignation shall be made only for the unexpired
term: Provided, finally, that in no case shall any member serve for more than seven (7)
years in the Commission.

) The Commission shall meet as often as may be necessary on such day or days as the
Chairperson may fix. The presence of at least three (3) members of the Commission shall
constitute a quorum, which shall be necessary for the transaction of any business. The
affirmative vote of majority of the members of the Commission where a quorum is present
shall be necessary for the adoption of any order, resolution, decisions, or other act of the
Commission in the exercise of its quasi-judicial functions: Provided, That in promulgating


rules, regulations, guidelines and in the exercise of its quasi-legislative functions, an
affirmative vote of three (3) members shalll be required;

4) The Chairman of the Commission shall exercise general executive control and
supervision of the Commission and its members, staff and personnel, agents, and
representatives. Within three (3) months from the creation of the Commission and the
appointment of all Members of the Commission, the Chairman shall submit for the
approval by the President of the Philippines the new organizational structure and plantilla
positions necessary to carry out the powers and functions of the Commission, including
those of the Central and Provincial Regulatory Units. The staff and personne! positions of
the Commission shall be filled by regular appointments in accordance with a staffing plan
to be prepared by the Commi

mn.

) Members of the Commission shall enjoy security of tenure and shall not be suspended
or removed from office except for just cause as specified by law.

£) The Chairman and members of the Commission or any of their relatives within the fourth
civil degree of consanguinity or affinity, legitimate or common law, shall be prohibited
from holding any interest whatsoever, either as investor, stockholder, officer or director, in
any company or entity engaged in provision of water supply and distribution, septage
management and sewerage services and must, therefore, divest through sale or legal
disposition of any and all interests in the water sector upon assumption of office.

Sec. 41. Secretariat of the Commission. - The Commission shall establish a Secretariat which
shall provide the Commission with technical and support services such as:

4) Provide the necessary technical inputs and secretariat support to the Commission to
facilitate the conduct of its functions;

b) Coordinate with Regulatory Units to ensure proper implementation of the rules,
regulations, and guidelines promulgated by the Commission;

) Monitor and assess activities of the Regulatory Units vis-a-vis their respective annual

performance plans and targets;
d) Maintain a database on the water supply and sanitation subsector; and

€) Coordinate with other relevant agencies of the national or local government on any
matter relating to water supply and sanitation.

Sec. 42. The Executive Director. - The Commission shall appoint an Executive Director who
shall head the Commission Secretariat, keep and maintain the official records, and report of the


proceedings of the Commission, and administer oaths in all matters falling within the jurisdiction
of the Commission.

The Executive Director shall be responsible for the effective implementation of the policies, plans,
programs, rules, regulations, and directives of the Commission; coordinate and supervise the
activities of the different operating units under the Commission; and perform such functions as
may be assigned by the Chairperson and/or other members of the Commission.

Sec. 43. Enhancement of Technical Competence. - The Commission shall establish rigorous
training programs for its staff for the purpose of enhancing the technical competence of the
Commission in the following areas: evaluation of technical performance and monitoring
compliance with service and performance standards, performance-based rate-setting reform,
environmental standards and such other areas as will enable the Commission to adequately perform
its duties and functions.

Sec. 44. Composition and Other Emoluments. - The compensation of the members of the
Commission and its staff shall be exempted from the coverage of Republic Act. No. 6758,
otherwise known as the Salary Standardization Act: Provided, that the salaries of the Commission
and its staff shall conform as closely as possible to the principles of R.A. 6758. For this purpose,
the schedule of compensation of the Commission and its Regulatory Units and staff shall be
submitted for approval of the President of the Philippines. The compensation schedule of the
Commission and its Regulatory Units and staff shall be implemented within six (6) months from
the effectivity of this Act and may be upgraded by the President of the Philippines as the need
arises: Provided further, that in no case shall the compensation of the Commission and its staff be
upgraded more than once a year. Pertinent civil service laws, rules, and regulations of the
Philippines shall be applicable to the Commission.

The Chairman and members of the Commission shall initially be entitled to the same salaries,
allowances and benefits as those of the Presiding Justice and Associate Justices of the Supreme
Court, respectively.

CHAPTER VII
REGISTRATION AND LICENSING

Sec. 45. Registration and Licensing of All Water Supply and/or Sanitai
Water Supply and/or Sanitation Service Providers, including but not limited to Bulk Water
‘Suppliers, operators of privately-owned water supply systems, local government managed
barangay waterworks associations, water districts, cooperatives, those providing services to
subdivisions and/or other Service Providers, shall register with the Commission and, subject to
such rules, guidelines, procedures and other issuances of the Commission, obtain a License to
operate from the appropriate Regulatory Units.



‘The Commission shall also ensure that the grant and revocation of licenses are carried out fairly,
transparently, and without discrimination. Issuances of the Commission shall specify, among
others, the qualifications, requirements and procedure for the grant and revocation of Licenses
including the standards and performance targets that shall continuously be complied with to keep
the licenses valid.

‘The Commission shall specify the requirements and procedure for existing holders of Certificate
of Public Convenience, Certificates of Public Convenience and Necessity issued by NWRB, and/or
Conformance issued by LWUA, to convert their existing certificates into Licenses issued by the
Commission. All existing providers of Water Supply and/or Sanitation Services without a legal
and valid Certificate of Public Convenience/Certificate of Public Convenience and Necessity or
Certificate of Conformance shall register with the Commission and apply for a License within six
(6) months from the effectivity of this Act.

Unless otherwise provided in this Act or by the Commission, no public water supply and/or
sanitation service provider shall commence or conduct the business of providing water supply and
sanitation services without first obtaining a license.

Concession agreements and other contracts for water supply provision and/or water sanitation and
treatment services currently existing shall remain valid and enforceable unless otherwise
terminated, after due notice and hearing for reasons provided in the existing terms and conditions
under the concession or service agreement or contract, or invalidated by the Commission, after
due notice and hearing, where national security, national emergency, or public interest so dictates.

Sec. 46. No Exclusivity on Grants for Water Supply and/or Sanitation Services. - Except for
Service Areas with respect to which exclusive rights to provide Water Supply and/or Sanitation
Services are granted under existing laws, licensees do not have the exclusive right to provide Water
Supply and/or Sanitation Services within a Service Area and consequently, the Regulatory Board
may issue one or more licenses for operator within any existing or proposed Service Areas, as
decided by the Supreme Court in Metropolitan Cebu Water istrict vs. Margarita A. Adaia (G.R.
No. 168914, 04 July 2007).

Sec. 47. Conditions of License. - The Commission and/or the concerned Regulatory ‘Unit, may
impose such conditions in the issued License, as it may deem necessary, such as but not limited
to:

4) Tariffs, rates, and charges that may be imposed from its customers/consumers;
b) Term fixing the duration of the privileges

c) Grounds for modification, suspension, or cancellation of the License;


4) Minimum technical performance and service level standards, such as but not limited to:
(1) water pressure; (2) minimum flow rates; (3) connections; (4) sewerage discharge,
illing, and metering requirements, and sanctions for failure to comply with the standards
set;

) Expansion targets and service level improvements over time;

f) Restrictions or conditions for transferability of the business or controlling interest in the
business;

g) Reportorial requirements and obligations of the grantee;

jon or its duly authorized

representatives).

Sec. 48. Rights and Duties of Licensees. -

a) Any person granted a License under this Act shall have the obligation to ensure that
licensed activities are conducted to further public interest and, in particular:

1. Foster the maintenance and development of efficient, coordinated, and viable
operation of their licensed activities;

2. Ensure that their water supply and/or sanitation services are provided in a diligent,
conscientious and workmanlike manner, in accordance with applicable laws rules
and regulations issued by the Commission and the generally accepted standards and
practices in the water supply and sanitation industry;

3. Comply with drinking water quality requirements and standards that may be
established by the Commission; and

4. Ensure that provision of services shall not be discontinued without notice to, and
approval by, the Commission.

b) Any person granted a License under this Act shall, to the extent allowed by law and
specified in the License, have the right to acquire or lease land, lay or repair water or
sanitation mains, and other relevant facilities in public ways to fulfill their obligations;

©) Subject to any condition or limitation laid down in the License, a licensee may
disconnect water supply and/or sanitation services to a customer if such customer defaults
in the payment of fees due to the licensee for the water supplied or sanitation services
provided, or for acts of pilferage pursuant to Sections 8, 9, 10, and 11 of Republic Act No.
8041, otherwise known as the Water Crisis Act of 1995;

4) Any License issued under this Act shall contain provisions designed to ensure that
Licensees:


1. Publish the Tariff and other charges approved by and the terms and conditions
imposed by the Commission for the provision of water supply and/or sanitation
services;

2. Prepare, within three (3) months from the issuance of a License, in consultation
with its customers, a customer service code specifying the manner and procedure
for: i. Metering, billing, and collection of the Licensee's approved tariff and other
charges; ii. Disconnection or suspension of service in case of non-payment of tariffs
and/or other charges, or acts of pilferage; and iii. Recommendation and recovery of
arrears in tariffs and other charges.

3. Maintain financial accounts in accordance with the manner and procedure specified
in the License and as may be required by the Commission; and

4. Maintain and, upon request by anyone during regular office hours, promptly make
available for scrutiny and inspection such data, statistics and other information, as
may be required by the Commission.

See. 49, Setting Tariffs/ Rates and Other Charges. - Regulatory Units shall establish tariffs,
rates and other charges which are fair and reasonable, and ensure environmental sustainability,
economic viability, and a fair return on investments considering the prevailing cost of capital in
the domestic and international markets.

Tariffs, rates, and charges shall be based on, and consistent with, a scientific and evidence-based
rate-setting methodology that the Commission shall, after due consultation with the Department,
define and publish, taking into account the following, among others:

a) Reasonable and prudent capital and recurrent costs of providing the service including a
reasonable rate of return on capital;

b) Efficiency of the service;

©) Incentives for enhancement of efficiency;

4) Willingness to pay of the customers/consumers;

e) Equity considerations;

£) Environmental sustainability; and g) Administrative simplicity.

Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid and reasonable
unless a protest or contest is filed with the Commission.

Sec. 50. Direct Access. - Fifty-one (51) percent of the registered water consumers in a
municipality, city or province may petition for direct access to water from any water service
provider subject to concurrence by the service provider and approval by the Commission. The


Commission shall promulgate the implementing rules and procedures for this mode of service or
direct access water service.

Sec. 51. Promotion of Innovative Schemes to Improve Efficiency and Management of
Systems. - The Commission shall promote innovative schemes such as the consolidation and/or
integration of water supply and/or sanitation services, and/or providers in the same service area,
where it shall result in improved efficiency, service expansion, and/or lower costs.

To this end, the Commission shall establish and issue such rules and guidelines as may be
necessary to

(a) create incentives to encourage efficiency and service expansion;
(b) establish the standards and targets that service providers are required to meet; and

(©) define the fines and penalties that shall be imposed for failure to meet such standards
and targets.

CHAPTER VIII
PROCEEDINGS BEFORE THE COMMISSION

Sec. 52. Proceedings Before the Commission. - For the purpose of any investigation, inquiry or
proceeding, the Commission shall:

a) Issue subpoena duces tecum and subpoena ad testificandum;
b) Appoint hearing officers to hear and receive evidence on behalf of the Commission;

) Cite any person or party for contempt for refusal to appear, testify or comply with an
‘order of the Commission on any matter that is the subject of investigation, inquiry or
proceeding before the Commission.

See. 53. Orders and Decisions of the Commission. - The orders, resolutions and decisions of the
Commission shall be promulgated promptly, expeditiously, and reasonably, and shall be in writing
stating clearly and distinctly the facts and law on which it is based. The Commission shall publish
and make available for public inspection, all decisions and final orders in the adjudication of
contested cases or applications,

Sec. 54. Appeals Procedure and Prohibition Against Injunction. -

a) The orders, rulings, and decisions of the Commission are final and executory unless
appealed to the Court of Appeals within fifteen (15) days from receipt of notice of such
order, ruling or decision: Provided, that orders, rulings, and decisions of the Commission
approving tariffs, shall be immediately executory and may be suspended only upon appeal


and filing of a bond, in an amount to be fixed by the Commission, to answer for damages
‘occasioned by the suspension or stay of execution of such orders, rulings, and decisions.

b) No injunction may be issued by any court or administrative agency to restrain any
proceeding before, or the implementation or execution of any order, ruling, or decision of
the Commission, except on the basis of a question of law brought before the Supreme Court
on certiorari: Provided, that this prohibition shall not apply when the matter is of extreme
urgency involving a constitutional issue, such that unless a temporary restraining order is
issued, grave injustice and irreparable injury will arise, In such a case, the applicant shall
file a bond, in an amount to be fixed by the Court, which bond shall accrue in favor of the
government if the court should finally decide that the applicant was not entitled to the relief
sought.

©) Subject to Sec. 40, Paragraph (b) of this Act, an act or decision of the Commission shall
not be invalid merely because of a defect or irregularity in, or in connection with, the
appointment or vacancy in the Office of the Chairperson or any other member of the
Commission.

CHAPTER IX
TRANSITORY AND FINAL PROVISIONS

Sec. 55. Transfer of Rights and Obligations. - The Department and the Commission shall, by
virtue of this Act, be subrogated to all the rights, and assume all the obligations, of the Water
Uiilities Division of the NWRB, the Regulatory Offices of MWSS and LWUA, the Regulatory
Units of all special economic zones, and all other government agencies and units whose powers
and functions have been transferred to them.

‘The transfer of powers and functions to the Department and the Commission, as herein provided
for, shall take effect within six (6) months after the effectivity of this Act. The foregoing transfer
of powers and functions shall include all applicable funds, personnel, records, property and
equipment, as may be necessary. The same shall apply to agencies which have been attached to
the Department by virtue of this Act.

All agencies transferred, subsumed and attached to the Department or the Commission, shall
continue to function under their present mandates until transition is effected under this Act, and
the heads of the affected agencies shall continue to serve until replaced.

All rights and obligations of the affected agencies are hereby transferred to and assumed by the
Department or the Commission, and shall be acted upon in accordance with the rules and
regulations of the Commission on Audit and other pertinent laws, rules, and regulations.


See. 56. Absorption or Separation from Service of Employees of the Subrogated Agencies. -
The existing employees of the Water Utilities Division of the NWRB, the Regulatory Offices of
MWSS and LWUA, the Regulatory Units of all special economic zones, and all other government
agencies and units whose powers and functions have been transferred to the Commission shall
‘enjoy the security of tenure, and shall be absorbed by the Department, in accordance with their
staffing pattern and the selection process as prescribed under Republic Act No. 6656 or the
‘Government Reorganization Law.

Employees opting to be separated from the service as a consequence of the consolidation and
reconstitution under the provisions of this Act, shall within one (1) month from their separation or
phase out from the service, receive separation benefits in accordance with existing laws and those
who are qualified to retire shall be allowed to retire and be entitled to all benefits under any of the
existing retirement laws.

Sec. 57. Applicability of Ease of Doing Business Law. - The prescribed processing time provided
under Section 9.b of Republic Act No. 11032 otherwise known as the Ease of Doing Business and
Efficient Government Service Delivery Act of 2018, shall be applicable to all agencies and LGUs
covered under this Act particularly on accessing government services.

See. 58. Funding for the Commission. - The sum of Three Hundred Million (P300,000,000.00)
pesos shall be allocated from any available funds of the National Treasury, and appropriated and
authorized to be released, for the organization and initial operations of the Commission.

‘Thereafter, funds sufficient to fully carry out the objectives, powers, and functions of the
Commission and its Regulatory Units shall be appropriated every fiscal year in the General
Appropriations Act, in an amount that shall not be less than the amount appropriated for it the
previous year.

The Commission shall submit its annual budget, which shall include, among others, detailed
information on the compensation and benefits received by their employees, to the Department for
approval.

Subject to existing rules and regulations of the Department of Budget and Management (DBM),
all funds and monies collected by the Commission from fees, charges, surcharges and penalties,
which the Commission may impose and collect under this Act, shall accrue directly and
automatically to the Commission and shall be utilized solely for its operations. The guidelines for
the collection and disbursement of these proceeds shalll be defined in the implementing rules and
regulations of this Act.

A proportion of the abovementioned amounts shall be used for training and capacity building
purposes, including the upgrade and procurement of equipment and software as may be necessary


for the efficient and effective exercise of its power, subject to existing laws on procurement,

accounting and auditing rules and regulations.

The amount of funds and monies collected, and the costs and purposes for which such were
expended, shall be made publicly available upon request, as well as on an official website that the
Commission shall establish.

Sec. 59, Water Trust Fund. - There is hereby created a Water Trust Fund in the Bureau of
Treasury. All non-tax revenues, including raw water pricing, permit fees, registration fees,
supervision and regulation enforcement fees, filing fees, testing fees, and other service income
from the use of water resources shall be remitted to the Water Trust Fund. The trust fund shall be
accounted separately from the government's general revenues and shall be automatically
appropriated to the Department. Proceeds from the trust fund shall be utilized for water
development, water sanitation and waste water treatment and management, and water
sustainability programs and projects authorized under this Act: Provided, That a maximum of ten
percent (10%) of the total income generated from raw water extraction shall be given as share of
the concerned local government unit or Indigenous people (IP) who owned the specific areas or
land where the raw water was sourced.

Sec. 60. Appropriations. - The sum of two billion pesos (P2,000,000,000.00) shall be set aside
from available funds of the National Treasury and is hereby appropriated and authorized to be
released for the organization of the Department and the current year's appropriations of the NWRB,
RCBO, NIA, MCBO and the Water Quality Management Section of the EMB of the DENR, the
Flood Management Cluster of the DPWH, the Water Supply and Sanitation Unit of the DILG shall
be used for its initial operations. Thereafter, such sums as may be necessary for the continued
implementation of this Act shall be included in the General Appropriations Act. The Department
shall include in its proposed budget the necessary amount to enable it to achieve its mandate and
to carry out its powers and functions.

Sec. 61. Implementing Rules and Regulations. - Within one hundred eighty (180) days from the
effectivity of this Act, the Department, in consultation with concerned government agencies, the
Senate Committee on Public Services, and the Committee on Civil Service, Professional
Regulation, and Government Reorganization, and the House of Representatives Committee on
Government Reorganization, shall promulgate the necessary implementing rules and regulations
for the implementation of this Act: Provided, that the revised implementing rules and regulations
shall take effect fifteen (15) days following its publication in two (2) newspapers of general
circulation.

Sec. 62. Separability Clause. - If for any reason, any portion or provision of this Act shall be held
unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be in
full force and effect.


Sec. 63. Repealing Clause. -

a) The following provisions are hereby repealed: i. The provision with respect to fixing of
water rates and sanitation service fees of Section 3 (h) and Section 12, and regulation of
waterworks and deep wells of Section 3 (n), regulation of waterworks and sanitation
systems in privately owned subdivisions of Section 3 (p) of Republic Act 623 i

62 on regulation and Section 63 on rate review of Presidential Decree No. 198 otherwise
known as the "Provincial Water Utilities Act of 1973", as amended by Letter of Instruction
No. 700 - "Providing Measures To Control And Regulate Increase In Water Rates", Letter
of Instruction No. 744 - "Relative To Reliable Water Supply At Reasonable Rates In The
Countryside", Executive Order No. 124, 30 January 1987 - "Reorganization Act of the
Ministry of Public Works and Highways", and Executive Order No. 123, 30 January 1987
- "Reorganization Act of Ministry of Social Services and Development”, is hereby repealed
or modified accordingly.

b) The following provisions are hereby amended accordingly: i. Section 154, Article V,
Chapter I, Title One, Book II of Republic Act No. 7160 otherwise known as the "Local
Government Code of 1991", and its implementing rules and regulations on the power of
the local government units to fix the rates of water utilities owned, operated and maintained
by them within their jurisdiction is hereby repealed or modified accordingly. ii. Section 13
(b) on regulation of enterprises within the Economic Zone under Republic Act No. 7916
as amended, otherwise known as the Special Economic Zone Act of 1995, is hereby
repealed or modified accordingly; ili. Provisions under Section 69 of Republic Act No.
9593 or The Tourism Act of 2009 and its Implementing Rules and Regulations which
mandates the Tourism Infrastructure and Enterprise Zone Authority to grant franchises,
supervise the operation of public utilities, and register, monitor and regulate enterprises
within Tourism Enterprise Zones, are hereby repealed or modified accordingly.

) All other laws, presidential decrees, executive orders, presidential proclamations, rules
and regulations, or parts thereof which are inconsistent with the provisions of this Act are
hereby repealed or amended accordingly.

Sec. 64, Effectivity. - This Act shall take effect thirty (30) days after its publication in the

Official Gazette.

Approved,