b 
THIRTEENTH CONGRESS 
I 
OF THE REPUBLIC OF THE PHILIPPINES 
First Regular Session 
] 
I957 
S. B. No. 
Introduced by Senator M.A. Madrigal 
I 
EXPLANATORY NOTE 
It is the declared policy of the State to "protect and advance the right of 
the people to a balanced and healthful ecology in accord with the rhythm and 
harmony of nature" as stated in Section 16 of Article I1 of the 1987 Philippine 
Constitution. 
As a signatory to various international instruments on environmental 
protection, the Philippine government also undertook to enact legislation and 
promote environmental awareness among its citizens. As a matter of fact, it 
came up with Philippine Agenda 21 to take a multi-sectoral approach in the 
achievement of a sustainable development framework in terms of legislation and 
policies. As one of the contracting parties to the Convention on Biological 
Diversity, the Philippines is also bound internationally to protect its rich natural 
resources. 
In line with this, there are various measures undertaken by the 
government to possibly curb the rate of environmental destruction, brought 
about by various man-made activities. There are various laws, strategies and 
action plans with identified goals of the conservation, sustainable utilization, and 
equitable sharing of the benefits of biodiversity. Thus, it is not the absence of 
legislation or policy that increases the environmental destruction by the Filipino 
people. It is the absence of a monitoring agency that will specifically take all 
these laws together and manage the implementation of the various regulations 
for the promotion of environmental protection. There is an undeniable need for 
improved governance of natural resources through greater transparency, 
accountability, responsiveness, and participation. 
This can be achieved by the creation of a National Environmental 
Management Authority (NEMA) that will be the principal agency for the 
management, coordination, monitoring and supervision of all activities in the 
field of the environment. It is only through the proper regulation of the impact of 
environmental destruction occasioned by human activities with control and 
abatement of environmental pollution that the obligations of the State towards its 
people can be fulfilled. 


Therefore, in the spirit of good governance and public accountability, the 
creation of the NEMA must be undertaken to adopt and implement plans, 
programs, projects and activities which shall ensure protection of the 
environment caused bv man's activities. 


THIRTEENTH CONGRESS 
1 
OF THE REPUBLIC OF THE PHILIPPINES 
} 
First Regular SesJion 
5 PK? -9 p5 :y 
Introduced by Senator M.A. Madrigal 
AN ACT CREATING THE 
NATIONAL ENVIRONMENTAL MANAGEMENT AUTHORITY, 
DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted 
the Senate and the House Ofhpresentaher in Congress assembled 
Chapter I 
General Provisions 
SECTION 1. 
Title. - This Act shall be known as the “National Environmental 
Management Authority (NEMA) Act”. 
d 
SEC. 2. Declaration of Poliy. - It is the policy of the State to protect and advance the right 
of the people to a balanced ecology and a wholesome and healthy environment. Toward this 
end, the State shall create an agency mandated to adopt and implement plans, programs, 
projects and activities which shall ensure protection of the environment caused by man’s 
activities. 
Chapter I1 
National Environmental Management Authority 
SEC. 3. Creation of the National Environmental Management Authority. - To 
implement the policy enunciated in this Act, there is hereby created a non-stock, non-profit 
body corporate to be known as the National Environmental Management Authority, 
hereinafter referred to as the Authority, which shall be created within One hundred twenty 
(120) days after the effectivity of this Act. The Authority shall be under the general 
supervision of the Office of the President. 
SEC. 4. Putposes and Duties of the Authority. - In pursuit of its mandate, the Authority 
shall have the following general purposes and duties: 


Formulate and implement an integrated approach to the improvement of the 
country's environmental quality; 
Develop and implement a comprehensive, multi-year plan for environmental 
protection and pollution control that shall form part of the National 
Economic and Development Authority's national development plan; 
Evolve an integrated, multi-sectoral and multi-disciphnary national 
conservation strategy which shall focus on the critical life-support systems; 
Implement the Environmental Impact Assessment (EIA) System under 
Presidential Decree No. 1586; 
Formulate and enforce environmental quality standards for water, air, land, 
noise, radiation, etc.; 
Promulgate and prescribe policies, rules and regulations for the control of 
water, air and land pollution, and the proper disposal of solid wastes, as well 
as toxic and hazardous substances; 
Develop and undertake an integrated research program pertaining to 
environmental protection, pollution prevention, control and management; 
Monitor and evaluate the implementation of all laws relating to the regulation 
and control of activities that have an impact on the maintenance of a 
wholesome natural environment, undertake or recommend necessary 
measures thereon; 
Des-, 
establish and implement a combined system of natural resources 
fees, pollution charges, fines and penalties linked to an operating principles 
that the use or polluter shall bear responsibility for payment, and creating the 
necessary incentives to abate, reduce, neutrahe, recycle, re-use or otherwise 
minimize or prevent pollution; 
Develop a cost-effective environmental information system to support 
research and information dissemination campaigns; 
Prepare annual environmental status reports to be submitted to the President 
and Congress; 
Conduct information dissemination, education and training programs relating 
to environmental protection, pollution prevention, control and management; 
Promote cooperation and encourage greater people participation and private 
initiative in environmental protection, pollution prevention, control and 
management; 
Organize the most appropriate implementing mechanism relative to the 
performance of its mandated powers and functions; 
Adopt, prescribe and promulgate rules and regulations governing the 
procedures of the Authority with respect to hearings, the hling of reports, the 


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issuance and/or review of all permits and other rules and regulations for the 
proper implementation and enforcement of this Act; 
Consult or seek assistance from appropriate agencies or instmmentalities for 
the purpose or enforcing this Act; and 
Direct and/or deputize the assistance of appropriate government agencies or 
instrumentalities for the purpose of enforcing this Act and its implementing 
d e s  and regulations as well as the orders and decisions of the Authority. 
(p) 
(4 
SEC. 5. General Corporate Powers of the Authority. - The Authority shall have the 
following powers: 
To have continuous succession under its corporate name until expiration 
hereunder or othenvise provided by law; 
To prescribe its by-laws not inconsistent with this Act; 
To adopt a seal and alter it at its pleasure, which shall be accorded judicial 
notice; 
To sue and be sued; 
To enter into contracts; 
To lease or own real or personal property and to sell or otherwise dispose of 
the same; 
To do and perform any and all things that may be necessary or proper to 
carry out the purposes of this Act. 
SEC. 6. Place of Business. - The Authority shall establish its principal office in Metro 
Manila but may establish and maintain field,offices, branches, subsidiaries, or other units as 
may be necessary to administer its responsibilides. It may reorganize or abolish the same as it 
may deem proper. Provided, that there shall be at least one branch in every administrative 
region of the country. 
Chapter I11 
Financing 
SEC. I. - Capitalixation and Financing. - The capital of the NEMA shall be One Billion 
pesos (Phpl,OOO,OOO,OOO.OO), to be fully subscribed by the Government of the Republic, 
hereafter referred to as the Government, Two hundred million ~hpZOO,OOO,OOO.OO) of 
which shall be f d y  paid for by the Government upon the effectivity of this Act, the balance 
to be paid for within a period of five (5) years from the effectivity of this Act, in such 
manner and form as the Government, through the Secretaries of Finance and Budget and 
Management may thereafter recommend for appropriation. 


SEC. 8. Loans, Credits and Other Forms of Indebtedness. - The Authority may contract 
loans, credits and other forms of indebtedness when essential to the proper administration 
of its corporate affairs or necessary for the proper transaction of its business or to carry out 
its purpose. 
SEC. 9. Bonds and Other Long-Term Sectlrities. - Subject to the rules and regulations of 
the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission, the Authority 
is hereby authorized to issue bonds, debentures, securities, collaterals, notes and other 
obligations to finance self-liquidating projects. 
! 
SEC. 10. Exemption from Tuxes. - The Authority shall be exempt from all taxes, licenses, 
fees and duties, incidental to its operations. This exemption shall extend to its subsidiaries. 
All notes, bonds, debentures and other obligations issued by the Authority shall be exempt 
from all taxes both as to the principal and interest. Any donation, contribution, bequest, 
subsidy or financial aid which may be made shall likewise be exempt. The Authority shall be 
exempt from estate or gft taxes, subject to the conditions provided under the National 
Internal Revenue Code, as amended. 
SEC. 11. Regdatov Fees. - The Authority may impose reasonable fees for the issuance of 
permits for periodic monitoring and inspection of pollution control or waste collection, 
processing or disposal facilities. 
SEC. 12. Compromise Agreements. - The Authority may compromise, condone, or release 
in whole or in part, any claim of or settled liability to the NEMA, regardless of amount 
involved, under such terms and conditions as may be prescribed by the Board of Trustees 
to protect the interest of the Authority. 
Chapter IV 
Organization 
SEC. 13. Board of Trustees. - The corporate powers shall be exercised, all business 
conducted and all property of the Authority controlled and held by the Board of Trustees to 
be appointed by the President. 
The Board of Trustees shall be composed of the following members: 
a) Director General of the Authority, Chairman 
b) Secretary of Health; 
c) Director General of the National Economic Development Authority; 


d) Secretary of Labor; 
e) Secretary of the DENR; 
€) Ten (IO) members representing the following sectors. 
(1) Three (3) from industry; 
(2) Three (3) from environmental non-government organizations or peoples 
organizations; 
(3) Two (2) from the academe or professional groups involved in 
environmental protection, and 
(4) Two (2) from the labor sector. 
The private sector representatives shall be appointed by the President as nominated by the 
respective sectors. 
SEC. 14. Organixation. - The Authority shall be organized as follows: 
(1) Office of the Director General; 
(2) Office of the Deputy Director General; 
(3) Administtative and Finance Division; 
(4) Public Affairs Division; 
(5) Legal Division; and 
(6) Environmental Adjudication Commission. 
The staff offices shall be as follows: 
1) Environmental Planning Office; 
2) Environmental Research Office; 
3) Environmental and Management Information System Office; 
4) Environmental Education and Training Office; and 
5) Environmental Regulations Office. 
SEC. 15. Director General: - The authority and responsibility for the implementation of the 
Authority's mandate shall be vested in the Director General for Environmental 
Management. He shall be appointed by the President of the Philippines, with the consent of 
the Commission on Appointment, and shall enjoy the status, rank and compensation 
equivalent to that of a cabinet secretary. 
! 


Chapter V 
Environmental Adjudication Commission 
SEC. 16. Environmental' Adjudication Commission. - The Pollution Adjudication Board 
(PAB) created under Executive Order No. 192 shall be transferred and attached to the 
NEMA, but only for program and: policy coordination. The PAB shall be reorganized into 
the Environmental Adjudication Commission (EAC) in accordance with this Chapter. 
SEC. 17. General Jurisdiction. - The EAC, with a regional structure as herein provided, 
shall have original and exclusive jurisdiction to decide cases under RA Nos. 8749,6969 and 
9003, (the Clean Water Act), Presidential Decree No. 1586, and other special laws on 
pollution and environmental protection. 
SEC. 18. Composition ofthe Environmental Adjudication Commission. -The EAC shall 
be composed of the following: 
a) Director General of the Authority - Chairman; 
b) Deputy Director General; 
c) Director of the Environmental Regulation Office; 
d) Director of the Environmental Research Office; 
e) Chief of the Legal Division; and 
9 Ten (10) members representing the following sectors: 
(1) Three (3) from industry; 
(2) Three (3) from environmental non-government organizations or people's 
organizations; 
(3) Two (2) from the academe or professional groups involved in 
environmental protection, and 
(4) Two (2) from the labor sector. 
The private sector representatives shall be chosen by the President from a list of 
nominees submitted by the respective sectors and endorsed by the Director General. Upon 
assumption into office, the members nominated by the sector shall divest themselves of any 
afffiation with the association they belong. 
SEC. 19. Procedure in the EAC. 
- The Commission may sit en banc or in five divisions, 
composed of three members each., The Commission shall sit en banc only for purposes of 
promulgating rules and regulations governing the hearing and disposition of cases before any 
of its divisions and regional branches and formulatifig policies affecting its administration 
and operations. The Commission shall exercise its adjudicatory and other powers, functions 


? 
and duties through its division. Of the five divisions, the First and Second shall handle cases 
coming from the National Capital Region and the Third, Fourth and Fifth divisions, cases 
from other parts of Luzon, Visayas and Mindanao. 
The concurrence of two (2) Commissioners of a division shall be necessary for the 
pronouncement of a judgment or resolution. Whenever the required membership in a 
division is not complete and the concurrence of two (2) Commissioners to arrive at a 
judgment or resolution cannot be obtained, the Chairman shall designate a number of 
additional Commissioners from thelother divisions as mtiy be necessary. 
The conclusions of a division on any case submitted to it for decision shall be 
reached in consultation before the case is assigned to a member for the writing of the 
opinion. It shall be mandatory for the division to meet for purposes of the constiltation 
ordained herein. A certification to this effect signed by the Presiding Commissioner of the 
division shall be issued and a copy thereof attached to the record of the case and served 
upon the parties. 
The Chairman shall be the Presiding Commissioner of the iirst division and the four 
(4) other members from the public sector shall be the Presiding Commissioners of the 
second, third, fourth and fifth divisions, respectively. In case of the effective absence or 
incapacity of the Chairman, the Presiding Commissioner of the second division shall be the 
Acting Chairman. 
! 
The Chairman, aided by the Executive Clerk of the Commission, shall have 
admhstrative supervision over the Commission and its regional branches and all its 
personnel, including the Executive Environmental Arbiters and Environmental Arbiters. 
The Commission, when sitting en banc, shall be assisted by the same Executive Clerk and 
when acting through its Divisions, by said Executive Clerk for its Divisions, by said 
Executive Clerk for the first Division and four (4) other Deputy Executive Clerks for the 
second, third, fourth and fifth divisions, respectively, in the performance of such similar or 
equivalent functions and duties as are discharged by the Clerk of Court and Deputy Clerks 
of Court of the Court of Appeals. 
SEC. 20. Headquarters, Branches and Provincial Extension Units. - The Commission 
and its First, Second and Third Divisions shall have their main offices in Metropolitan 
Manila, and the Fourth and Five Divisions in the cities of Cebu and Cagayan de Oro, 
respectively. The Commission shall establish as many regional branches as there are regional 
offices of the Authority, sub-regional branches or provincial extension units. There shall be 
as many Environmental Arbiters as may be necessary for the effective and efficient 


operation of the Commission. Each regional branch shall be headed by an Executive 
Envirohmental Arbiter. 
SEC. 21. Powers and Functions of the Environmental Adjudication Commissions. - The 
EAC shall have the following powers and functions: 
4 
b) 
Hear and decide all cases falling within its origmal jurisdiction; 
Issue orders and decisions to compel compliance with this Act, related 
environment and pollution control laws and their implementing d e s  and 
regulations; 
Make, alter or modify orders requiring the discontinuance of environmental 
degradation or pollution specifymg the conditions and the time within which 
such discontinuance must be'accomplished; 
Serve as arbiter for the determination of reparations or restitution of the 
damages and losses resulting from environmental degradation or pollution; 
Deputize in writing or request assistance of appropriate government agencies 
or instrumentalities for the purpose of enforcing its decisions; 
Issue an expan'e order dieecting the discontinuance of pollution or wastes, or 
the temporary suspension or cessation of operation of the equipment, project 
or activity and other acts causing environmental degradation, generating such 
pollutants or wastes, without the necessity of a previous public hearing. 
c) 
d) 
e) 
f )  
Provided, that such exparte order shall bel issued only in case of imminent danger to 
life or property. The exparte order shall be immediately executory and shall be effective for 
thirty (30) days from the date of issuance. The EAC shall immediately conduct a hearing to 
determine whether or not to issue a temporary lifting or temporary closure (cease and desist) 
order pending compliance with environmental and pending compliance with the 
requirements of laws and regulations. Exparte orders may be lifted pending compliance with 
the requirements of laws and regulations. Provided, further, that the respondent shall submit: 
4 
a commitment or undertaking under oath to comply 
with the standards and discontinue the polluting 
discharges within a specific period of time; 
a bond, guarantee or surety to ensure compliance; and 
a detailed good process of installing permanent 
pollution control devices, measures and processes. 
b) 
4 
Provided, finally, that no lifting of issued exparte Closures and Cease and Desist Orders may 
be issued if the pollutants being discharged are classified as toxic and hazardous; and 


d) 
Exercise such powers and perform such other functions as 
may be necessary to carry out its duties and responsibilities 
under &s Act. 
SEC. 22. Qwalifications of 
Members of 
the EAC. - A member of the EAC must be a 
citizen of the Philippines and must possess proven competence in field related to 
environmental protection. The Environmental Arbiters shall be Members of the Philippine 
bar and must have been engaged in the practice of law in the Philippines for at least seven 
(7) years, with at least three (3) years experience or exposure in the field of natural resources 
or environmental law. 
SEC. 23. Tenm and Removal $Members. - The Chairman and the other Commissioners, the 
Executive Environmental Arbiters and Environmental Arbiters shall hold office in good 
behavior until they reach the age of sixty-five years, unless sooner removed for cause as 
provided by law or become incapacitated to discharge the duties of their office. Members 
from the private sector shall serve for three (3) years. A member of the &IC 
may be 
removed from office, by order of the proper court, on any of the following grounds: 
0 
a) 
b) 
culpable violation of the Constitution; 
dishonesty, oppression, misconduct in office, dereliction of duty, or 
gross negligence 
commission of any offense involving moral turpitude or an offense 
punishable by imprisonment; and a month. 
Unauthorized absence for three (3) consecutive meetings. 
c) 
d) 
Each member shall receive an honorarium of at least One thousand pesos (P1,OOO.OO) 
per 
meeting attended. Honoraria shall be sourced from the funds of the Authority and the rates 
for honoraria may be increased through a resolution of the Authority’s Board of Trustees. 
SEC. 24. Meetings and Honoraria. - The EACs ,shall meet at least four (4) times a year. 
SEC. 25. The Laguna k k e  Authorily (LLDA) as a SpecialEAC. - The LLDA shall exercise the 
same powers and functions and follow the same rules of procedure as a Special EAC 
Division within its territorial jurisdiction under Executive Order No. 927, until such time 
that it shall have been dissolved, in accordance with Sec. 42 hereof. Thereafter, all conflicts 
shall fall under the jurisdiction of the proper EAC division. 
SEC. 26. Filing $Actions. - Any person may file a written complaint, under oath, with the 
EAC against any person who has violated laws under the FAC’s jurisdiction. Provided, that 


no complaints shall be entertained three (3) years after the occurrence of discovery of the 
incident complained of. Provided, further, that when it is found that the action filed is 
baseless and malicious, he shall be fined an amount of not exceeding One hundred thousand 
pesos (J?lOO,OOO.OO). 
SEC 27 . Independence $Action.- The filing of an administrative suit ag-ainst such 
person/entity does not preclude the right of any other person to file any criminal or civil 
action. Such civil action s h d  proceed independently. 
SEC. is. Suits and Legal Actions Against the Enforcement of this Act.- where a suit is brought 
against a person who fded an action as provided in Sec. 26 of this Act, or against any 
person, institutions or government agency that implements this Act, it shall be the duty of 
the investigating prosecutor or the court, as the case may be, to immediately make a 
determination not exceeding thirty (30) days whether said legal action has been filed to 
harass, vex, exert undue pressure or stifle such legal recourses of the person complaining of 
or enforcing the provisions of this Act. Upon determination thereof, evidence warranting 
the same, the court shall dismiss the case and award attorney's fees and double damages. 
I 
This provision shall also apply and benefit public officers who are sued for acts committed 
in their official capacity, theit being no grave abuse of authority, and done in the course of 
enforcing this Act. 
SEC. 29. Appeak - Any decision, order or judgment of the EAC shall become final and 
executory fifteen (15) days after receipt of said decision, order or judgment. The decision or 
order of the EAC may be reviewed by the Supreme Court on Certiorari provided for under 
the Rules of Court. 
SEC. 30. Exemtion of Derisions. - All decisions or orders of the EAC, after the same has 
become final and executory, shall be enforced and executed in the same manner-as the 
decisions of the Regional Trial Courts. The Commission shall have the power to issue to the 
City of Provincial Sheriff or duly constituted authorities whom it may appoint, such writs of 
execution as may be necessary for the enforcement of such decision or order. Such property 
shall be sold at public auction by the Sheriff. 
The EAC shall have the power to seize or confiscate personal property, or impose a levy on 
real property of the violator to satisfy the fines owing to it. Any person who shall fail or 
refuse to compIy with such decision, order or writ, after being required to do so shall, upon 
application by the EAC, be punished by the proper court for indirect contempt. 


SEC. 31. Len Upon l'erwnal and Immovable Pmpen'ies of Violators. - Fines and penalties imposed 
pursuant to the provisions of this Act, upon application by the EAC before the proper 
Regional Trial Court, shall constimte as a lien upon personal and immovable properties of 
the violator. Such lien shall in case of insolvency of the respondent, enjoy preference 
subsequent to labor's wages under Article 2241 and 2242 of Republic Act 386, othenvise 
known as the New Civil Code. 
Chapter VI 
Staff and Field Offices 
SEC. 32. Envimnmental Planning Ofice. - The Environmental Planning Office, which shall be 
headed by a Director and assisted by an Assistant Director, shall absorb the planning 
functions of the Environmental Management Bureau (EMB) of the Department of 
Environment and Natural Resources (DENR). As such, it shall have the following functions: 
(1) 
Formulate comprehensive, multi-year action plans for natural resource 
conservation, environmental protection and pollution control to be endorsed 
to NEDA for adoption into the national development plan; 
Coordinate the implementation by the public and private sectors of the 
NEDA-adopted multi-year plan 
for natural resource conservation, 
environmental protection and pollution control; 
Review, analyze and evaluate existing as well as proposed environmental 
protection and pollution control policies, plans, programs and projects of 
President and to Congress; 
Prepare an annual environmental quality status report to be submitted to the 
Conduct post-audit studies of environmental impact assessments prepared in 
accordance with Presidential Decree No. 1586; 
Provide planning support serves to the field offices of the Authority in order 
to ensure their efficient and effective operation; and 
Perform such other functions as may be assigned by the Director General. 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
SEC. 33. Envimnmental Research Ofice. - The Environmental Research Office, which shall be 
headed by a Director and assisted by an Assistant Director, shall absorb the environmental 
research functions of the EMB of the DENR. As such, the Office shall have the following 
functions: 
(1) 
Formulate and recommend to the Authority environmental quality standards 
(for water, air, land, noise, radiation, etc.) and environmental management 
guidelines for gaseous, liquid, solid as well as toxic and hazardous wastes; 


.
'
 
(2) 
Formulate and recommend an integrated research program pertaining to ak, 
water and land pollution, including research into environmentally sound 
technologies and pollution coiitrol technologies and conservation; erosion 
and deforestation, among others; of regulatory functions such as standard 
setting and environmental permitting activities; 
Conduct research studies on specific environmental problems such as soil 
Provide research laboratory services supportive of the Authority's exercise 
Provide research support services to the field offices of the Authority in 
order to ensure their efficient and effective operation; 
Perform such other functions as may be assgned by the Director General. 
(3) 
(4) 
(5) 
(6) 
SEC. 34. Environmental and Management InfDrmation $stems Ofice. - The Environmental and 
Management Information Systems Office, which shall be headed by a Director and assisted 
by an Assistant DL-ector, shall be primarily responsible for the design, establishment and 
operation of an environmental and management information system, including data bank 
development based on geographic information gleaned from periodic environmental 
surveillance, reconnaissance and monitoring activities utilizing complementary technologies 
such as aerial photography and other remote sensing systems. 
The Office shall absorb the information systems management functions of the EMB 
of the DENR, relative to natural resource conservation and environmental protection. 
1 
1 
SEC. 35. Environmental Education and Training OBce. - The Environmental Education and 
Training Office, which shall be headed by a Director and assisted by an Assistant Director, 
shall be primarily responsible for the conduct of environmental education and training 
programs relating to natural resource conservation and the protection and management of 
the environment. Said main objective of the programs is to increase the awareness of the 
people regarding environmental issues and problems. It shall include a "behavioral change 
and value formation" component aimed at altering polluter behavior and inculcating the 
environmental ethic of stewardship and the virtue of sustainable development. 
The Office shall absorb the environmental education functions of the EMB of the DENR. 
0 
SEC. 36. Environmental Regulations Ofice. - The Environmental Regulations Office shall be 
headed by a Director and assisted by an Assistant Director. It shall have the following 
functions: 
(a) 
Design, establish and institutionalize a unified environmental permit and 
licensing system (covering the regulatory areas of pollution control, land use 
planning, zoning and environmental impact assessment) in order to simplify 
and rationalize the processing of environment-related permits and licenses 


(such as the authority to construct, permit to operate, locational clearance 
issued by the Housing and Land Use Regulatory Board and the 
environmental compliance certificate); 
Review, analyze and evaluate pertinent technical/legal documents pertaining 
To environmental permit/license in order to determine the environmental 
acceptability and/or soundness of programs, projects and activities that may 
sgnificantly affect the environment; 
Perform investigative and monitoring functions to ensure the compliance of 
proponents to the Authority's rules and regulations; 
Initiate proper legal actions and proceedings such as the prosecution of 
violations of the Authority's rules and regulations and/or the cancellation of 
environmental permit or license takmg into account due process; 
Attend to appeals and complaints from the public and parties affected by the 
Authority's orders and decisions as they relate to natural resource 
consemation and environmental protection; 
Assist the technical support offices of the Authority in translating research 
and technical findings into legal and policy form (such as guidelines, orders, 
rules and regulations, etc.) and; 
Perform such other functions as may be assigned by the Director General. 
(b) 
(c) 
(d) 
(e) 
(0 
(g) 
SEC. 37. Field OBces ofthe Azthorig. - Field offices of the Authority shall be established in 
the fourteen (14) administrative regions of the country. Each Regional Office of the 
Authority shall be headed by a Regional Director, to be assisted by an Assistant Regional 
Director. Both the Regional Director and the Assistant Regional Director shall be Career 
Executive Service Officers or shall possess equivalent qualifications. The regional field 
offices of the Authority shall be locatedin ithe country's regional capitals. It shall have the 
following functions: 
1) Implement natural resource conservation and environmental protection laws as 
well as policies, plans, programs, projects and rules and regulations of the 
Authority in order to achieve the objective of sustainable development in the 
counttyside; 
2) Provide for the efficient and cost-effective deliveq of the Authority's services to 
the people; 
3) Coordinate with regional offices of other departments, offices, agencies in the 
regional and local government units in the enforcement of natural resource 
conservation and environmental protection laws; 
4) Recommend and, upon approval, implement projects on natural resource 
conservation and environmental protection; 


. " 
5) Conduct natural resource assessment and 
environmental surveillance, 
reconnaissance and monitosing in the region and formulate regional action plans 
for natural resource conservation and environmental protection; 
6) Conduct appropriate field research supportive of the Authority's policies, plans, 
programs and projects; 
7) Respond to appeals, complaints and queries from the public regarding natural 
resource conservation and environmental protection; and 
8) Perform such other functions as may be assigned by the Director General. 
Chapter VI1 
Other Provisions 
SEC. 38. Relations with People's and Non-Governmental Organiyations. - The Authority shall 
promote the establishment and operation of people's and non- governmental organizations 
to become active partners in the conservation of the natural resources and protection of the 
environment. 
The Authority may enter into joint ventures and such other cooperative 
arrangements with people's and non-governmental organizations to engage in projects 
designed to promote and maintain ecological balance, it may also provide assistance, 
financial or technical, to such people's and non-governmental organizations for 
environmental projects to be implemented withtn the country. 
SEC. 39. National Envimnment Pmtection Fund ("EPFunA). - There is hereby created a 
National Environment Protection Fund (NEPFund) to be administered by the Authority. 
To finance the said Fund, the following shall be imposed: (10%) of the total fees charged, 
but not more than One hundred pesos (J?lOO.OO) for every business or non-business permit 
or license issued by the government. 
(a) 
A national environment protection fee in an amount equivalent to ten 
percent 
An allocation eqnivalent to ten percent (10Yo) of the total unclaimed bank 
balances escheated in favor of the State under Republic Act No. 3936, as 
amended (Unclaimed Balances Law). 
(b) 


Proceeds from penalties prescribed in natural resource conservation and environmental 
protecdon laws and other penalties imposed by the Authority shall also accrue to the 
NEPFund; 
The NEPFund may be augmented by 'grants, subsidies, and donations from other 
government sources or provate grantors or donors; and 
The NEPFund shall be administered for the purpose of financing adequate, suitable and 
appropriate measures to promote natural resource conservation and improve enviroiimental 
quality. 
Chapter VI11 
Final Provisions 
SEC. 40. Appropriations. - To carry out the provisions of this Act, there is hereby 
appropriated, from funds in the national treasury not otherwise appropriated, the sum of 
Two hundred million pesos (l' 
200,00.0,000.00) 
as initial capital of the Authority. The 
succeeding appropriations for the balance of the Authority's capital shall be included in the 
annual General Appropriations Act for the fiscal years immediately following the effectivity 
of this Act. 
? 
SEC. 41. Transitoy Provisions. - All offices, bureaus, agencies and divisions herein mentioned 
to be absorbed by the Authority shall cease, and their functions, including theit 
appropriations, funds, records, equipment, facilities, rights, other assets and personnel shall 
be transferred to the Authority within 120 days after the effectivity of this Act. Its liabilities, 
if any, shall be treated in accordance with the government auditing code and other pertinent 
laws, rules and regulations. Its personnel whose positions are not included in the Authority's 
structure and staffing pattern shall be deemed separated from the service and shall be 
entitled to receive such bene6ts authorized under existing laws, rules and regulations. 
SEC. 42. Dissohtion $ the Laguna Lake Development Author@ 
- The Laguna Lake 
Development Authority, created under Republic Act No. 4850, as amended, shall be 
dlssolved within one (1) year from the effectivity of this Act, in as much as it exercises the 
same functions as the Authority. Provided, that the LLDA shall continue to exist as body 
corporate for three (3) years after dissolution for the purposes of prosecuting or defending 
suits by or against it and enabling it to settle and close its affairs, to dispose and convey its 
property and to distribute its assets, but not for the purpose of continuing the business for 
which it was established. 


Nevertheless, all government interests in the LLDA s h d  immediately accme to the 
Authority, which shall exercise all the tights of the Government as stockholder of the 
LLDA. All assets distributable to the Government as a result of the dissolution shall accrue 
to the Authority. 
SEC. 43. Repealing CLazse. - All acts, decrees, general orders, letters of insauction, regulations 
and circulars, or parts thereof inconsistent with any provisions of this Act are hereby 
repealed or modified accordingly. 
SEC. 44. Stparabihg CLazse. - If, for any cause, any part of this Act is declared 
unconstitutional, the rest of the provisions shall remain in force and effect. 
SEC. 45. E$ctiuZQ. - This Act shall take effect upon approval. 
Approved,