Republic of the Philippines RECEINLD
HOUSE OF REPRESENTATIVES —_- JUL 2018
Quezon City, Metro Manila DATE:

aoe: 22
BY.

Seventeenth Congress
First Regular Session

7 1833

House Bill No.

Br oreRA TAN UNIT
«sowie

Introduced by Representative Arthur R. Defensor, Jr.

EXPLANATORY NOTE

The Forest Resources Bill (FRB) seeks to establish a forest resource
management system to enstire the continued and efficient use of forest resources by
present and future generations. This work is the brainchild of Haribon Foundation in
collaboration with its partner organizations in the forestry and biodiversity sectors,
with the undersigned as one of the chosen principal sponsor in Congress. The FRB is
a codification of ideals, principles, policy and programs resulting from years of work
and advocacy of Haribon Foundation in the forestry and biodiversity sector.
Haribon Foundation and its partners seek its realization as a piece of legislation that
will protect and manage the most fundamental resource of all, our forest, through
the representation of the undersigned principal author

It is referred to as FRB to put in focus the forest as primary resource, the
benefits derived from it, as well as the initiatives to ensure that future generations
will continue to enjoy them.

Section 16, Article I, Se
of the 1987 Constitution provide:

ion 2 of Article XII, and Sections | and 2, Article XII

“Sec. 10. The State shall promote social justice in all phases of
national development.”

Xxx XXX XXX

“Sec. 16. The State shall protect and advance the right of the
people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature.”

Xxx XXX XXX

“Sec. 2. All lands of public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of potential energy,

NTAT RAS



fisheries, forest or timber, wildlife, flora and fauna, and other natural
resources are owned by the State, x x x The exploration, development
and utilization of natural resources shall be under the full control and

supervision of the State. xx x”

XXX XXX XXX

“Sec. 1. The Congress shall give highest priority to the
enactment of measures that protect and enhance the right of all the
people to human dignity, reduce social, economic, and political
inequalities, andl remove cultural inequities by diffusing wealth and

political power for the common good.

Yo this end, the State shall regulate the acquisition, ownership,
use, and disposition of property and its increments

Sec. 2. The promotion of social justice shall include the
commitment to create opportunities based on freedom of initiative and
self-reliance.”

Indeed, the State as the principal steward of the natural environment has the
supreme obligation to uphold the basic right of every citizen and future generations
to a balanced and healthful ecology, and in pursuit of this, to manage our forest
resource to meet the ends of social justice and national development. As aptly
described by the Supreme Court in Oposa ws, Factoray

“Such a right, as hereinafter expounded, considers the ‘rhythm.
and harmony of nature’. Nature means the created world in its
entirety. Such rhythm and harmony indispensably include, inter alia,
the judicious disposition, utilization, management, renewal and
conservation of the country’s forest, mineral, land, waters, fisheries,
wildlife, off-shore areas and other natural resources to the end that
their exploration, development and utilization be equitably accessible
to the present as well as future generations. Needless to say, every
generation has a responsibility to the next to preserve that rhythm and
harmony for the full enjoyment of a balanced and healthful ecology.”!

Towards this end, it is imperative that legislation be passed on the
management of our forest resources that truly puts flesh into the above-cited tenets
of the 1987 Constitution. The FRB surely fills this need

In its fundament, the FRB puts emphasis on the protection of our forests,
especially the remaining forest cover, understood by its functional definition used in
the bill. This is lo ensure the basic objectives of environmental stability, conservation

‘ G.R. No. 101083, 30 july 1995; underscoring supp


of biological diversity, improvement of ecosystem functions and services, and long -
term ecological and economic benefits? The main features of the FRB are as follows:

1, The FRB adopts a functional definition of forest ;

2. The watershed continuum is recognized as the basic forest
management unil, IL is an area consisting of the watershed and its
divide, including its connection from headwaters to the reef;*

3. Local Government Units (LGU/s), forest communities, including
indigenous peoples, are given primordial roles in the management
and utilization of forest resources; and

4. Forestry education is institutionalized in our educati

nal system,

THE FRB ADOPTS A FUNCTIONAL
DEFINITION OF FOREST.

‘The FRB adopts the definition of forest, i.
the dominant life form, as a community of plants and animals interacting with one
another and its physical environment, and consisting of trees with overlapping
crown of 60-100% forest coversThis definition is adopted from the United States
National Vegetation Classification System.

an ecosystem, wherein trees are

The innovation under the FRB is that the forest is viewed as an ecosystem,
sustaining varied plant and animal life, and maintaining varied biological functions.
Truly what a forest should be. Verily, a forest cannot only be viewed as mere
collection of trees.

The Department of Environment and Natural Resources (DENR) understands
forest as an area having ten percent (10%) forest cover in half a heclare. ‘This
definition was adopted by the Philippines from the Food and Agriculture
Organization (FAO) of the United Nations. This definition tends to give a false sense
of our forest cover in that, it includes ee plantations and even highly degraded or
completely barren lands which are expected to revert to forest over time. Asa result,
it can be said under such definition that forest area around the world increased by
300 million hectares, when in fact it did not

THE WATERSHED CONTINUUM IS
RECOGNIZED AS THE BASIC
FORESTLAND MANAGEMENT UNIT.

2 Infra at Sec. 3 (g) (iv).
: Infra at Sec. 4 (aaa).

1 Infra at Sec. 4 (aa).


The watershed continuum is an area consisting, of the watershed and its
divide, including its connection from headwaters to the reef.3 Forestlands shall be
conserved, developed, and managed using the watershed continuum as the basic
management unit, under the concepts of sustainable and mulliple-use management,
including the conservation of biodiversity. The FRB recognizes that watersheds are
transitional and composed of various interconnected ecosystems, Everything, is
interconnected. It follows that whatever is done in one part of the watershed
continuum affects the other parts.”

LOCAL GOVERNMENT UNITS, FOREST
COMMUNITIES, INCLUDING
INDIGENEOUS PEOPLES, ARE GIVEN
PRIMORDIAL ROLES IN THE
MANAGEMENT AND UTILIZATION OF
FOREST RESOURCES.

The LGUs, forést communities and indigenous peoples are the ones directly
affected by the state of their forests, making them immediate stakeholders in the
management of the forestlands. For this, the FRB provides for a direc
strengthened role in forest management, for the LGUSs and communities
specifically, the FRB provides for the creation of Forest Management Board (FMB) at
the municipal level. The FMB shall be composed of representatives from the DENR,
concerned LGUs, and the different sectors? Likewise, there shall be a Forest
Management Committee (FMC) at the municipal, provincial and regional
development council level. Barangays embracing the same watershed continuum
shall form an FMC under the Municipal Development Council. Cities and
municipalities shall likewise form an FMC under the Provincial Development
Council. While provinces within a cointuum shall form an FMC under the Regional
Development Council A co-management agreement shall be executed by the
DENR, the Department of Interior and Local Government, and the concerned LGUs
to manage these forestlands,

In recognition of the State policy of encouraging non-governmental,
community-based or sector organizations, and the promotion of the rights of
indigenous cultural communities within the framework of national development’,

5 Infra at Sec. 4 (z22)
® fra at Sec. 37.

fra at Secs. 16 and 17,
. Infra at See. 21

® CONSTITUTION (1987), Art. Il, Sees. 22 and 23,


the communities dependent on the forests for survival, including, indigenous
people, are given access even to timber products in protection forestlands, if such
were harvested from designated woodlots for their daily needs. Otherwise, only
non-timber forest products are allowed to be extracted from protection forestlands."

FORESTRY EDUCATION Is
INSTITUTIONALIZED IN OUR
EDUCATIONAL SYSTEM.

The FRB advances the active pursuit of the institutionalization and
rationalization of forestry education. Biodiversity conservation and. sustainable
forest management shall be included in school curricula. The Department of
Education shall include subjects on environment, forest and natural resources in the
curricula for elementary and high school education. The Commission on Higher
Education shall include mandatory ecology and environment courses in the general
education curricula, and shall actively pursue the rationalization of formal forestry
education by assigning higher weights on such subjects.'!

The FRB provides for the formulation and implementation of a nationwide
program for a sustained public information and advocacy campaign for forest and
natural resource conservation and sustainable forest management.!?

The licensure examination conducted by the government shall require
minimum units on forest conservation and restoration related subjects. Centers for
excellence in forestry and environmental education shall be established. This is to
ensure high-quality manpower output which will meet the needs of the forestry
sector.!3

Continuing education in forestry shall also be institutionalized.!*
‘Training centers in strategic parts of the country shall be established to

provide regular and up-to-date training on the various aspects of sustainable forest
management and restoration, Furthermore, it shall ensure that personnel placed in

Infra at See. 50.
Infra at See. 86
bid.

Infra at Sec. 87.

"Infra at Sec. 88

i



sensitive positions undergo training to prepare them for the proper discharge of
their duties and responsibilities."

Forest resource management is institutionalized by the FRB to address the
concern of a more professionalized management human resource, i.e. dynamic and
people oriented forest service, strongly adhering, to conservation principles.

In 1969, our forest cover forest was estimated to be at 69%, The DENR
estimated it to be at 22% in 1988.6 As at 2005, the DENR estimates the country’s
forest cover to be at 7.2 million hectares or 24%. This figure derived using satellite
images taken in 2002 and 2003 through a joint initiative of the Forest Management
Bureau and the National Mapping and Resource Management Information
Agency.!” A slight increase is recorded, but the figure 24% can give a false sense of
our forest cover, because the definition of forest adopted by the DENR includes
plantations and even highly degraded or completely barren lands which are
expected to revert to forest over time.

Be that as it may, our forest cover is ina spiral going downwards. 24% forest
cover is not enough, because our country needs more than that, in order that we can
truly benefit from the environmental protection that our forests can give us. If the
decline is not arrested we will lose our most important environmental heritage,
which is the forest. Our survival will be threatened.

It is on the foregoing premi
legislation of the country.

's that the FRB should be realized as a piece of

Respectfully submitted.

Infra at See at See. 89.
' HARIBON FOUNDATION, A Primer on the Forest Resource Bill, pp. 1 and 2.

" Michael T. Defensor, NATIONAL CONFERENCES PROCEEDINGS ON INTEGRATING
CONSERVATION WITH LOCAL GOVERNANCE, State of the Philippine Forest (2005), p.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

House Bill No. 185 3

Introduced by Representative Arthur R. Defensor, Jr.

AN ACT.
TO PROTECT, CONSERVE, UTILIZE, DEVELOP AND SUSTAINABLY
MANAGE FOREST RESOURCES AND FOR OTHER PURPOSES.

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

Section 1. Short Ti
of 2010".

le. This Act shall be known as the “Forest Resources Act

Section 2. Scope and Coverage. 'The provisions of this Act shall apply to all
lands of the public domain classified as needed for forestry purposes, all forestlands,
all forest resources found in untitled agricultural lands and in private land:
Provided, That all forests and forest resources found in protected areas established
under the National Integrated Protected Areas System (NIPAS) shall be sustainably
managed and developed following the provisions of Republic Act No. 7586 or the
NIPAS Act of 1992: Provided further, That the rights of indigenous cultural
communities or indigenous peoples to their ancestral domains shall be respected

All forestlands and forest resources therein under the administrative
jurisdiction of the Autonomous Region of Muslim Mindanao (ARMM) shall be
managed, developed and conserved in accordance with the Regional Sustainable
Forest Management Act of 2003 of the ARMM,

Section 3. Basic Policies aul Strategies.

a. Pursuant to the provisions of the Constitution to promote the
general welfare and social justice in all phases of national development, to
protect and advance the right of the Filipino people to a balanced and
healthful ecology in accord with the rhythm and harmony of nature, and to
conserve and develop the patrimony of the nation, the State hereby adopts the
following policies relative to the management, development and conservation
of forests and the resources therein:


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i Within five (6) years from the passage of this Act, the
specific limits of forestlands shall be fixed and
demarcated and thereafter, shall not be altered except
through an Act of Congress; The Congress shall, as soon
as possible, also determine, by law, the specific limits of
forestlands and national parks, marking clearly their
boundaries on the ground. Thereafter, such forestlands
and national parks shall be conserved and may not be
increased nor diminished, except by law. The Congress
shall provide for such period as it may determine,
measures to prohibit logging in endangered forests and
watershed areas;

ii, The use and conservation of forest resources shall bear a
social, ecological, biological and economic functions,
responsibility, and accountability to promote the
common good of the present and future generations;

The guiding principle in the sustainable and integrated
management, development, and conservation of forest
resources shall be focusing on these resources and on the
people who manage, conserve, and benefit from them;

iv. Biodiversity protection and conservation of wildlife
resources and their habitats, consistent with Republic Act
No. 9147 shall be a paramount consideration in forest
management,

v Genetically Engineered (GE) and transgenic trees pose
the gravest of dangers to forest ecosystems and violate
the Convention on Biological Diversity

b. The state shall protect the rights of indigenous cultural
communities/indigenous peoples to their ancestral domains to ensure
their economic and social and cultural well-being and shall recognize the
applicability of customary laws in governing property rights or relations
in determining the ownership and extent of ancestral domains;

c. The State shall promote social justice in all phases of national
development;

d. The State shall encourage non-governmental, community-
based, or sectoral organizations that promote the welfare of the nation;

The State shall ensure the autonomy of local governments;
and,


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a

‘The State shall pursue an independent foreign policy. In its

relations with other states, the paramount consideration shall be national
sovereignty, territorial integrity, national interest, and. the right to self
determination.

&

In carrying out the above policies, the following strategies

shall be pursued:

ii,

iii

iv.

v.

vi.

The watershed continuum as the basic forestland
management unit- Forestlands shall be managed,
developed and conserved utilizing watershed continuum
as the basic management unit and under the principles of
sustainable and multiple-use management, including
conservation of biological diversity;

Multi-sectoral participation- ‘The participation of all direct,
and indirect, especially local, stakeholders in sustainable
forestland conservation, management, and development
shall be mandatory. Equitable sharing of the benefits
derived from forestlands and the resources therein shall
be ensured at all times;

Community-based forest management (CBFM) as a
principal strategy- Vesting access rights and
responsibilities to forest resident or forest-dependent
families, local communities, and indigenous peoples to
undertake the management and development of
appropriate forestland resources on a sustainable basis
shall have precedence over other strategies;

Protection of forests and natural resources as a priority
concern- The protection of forests and the natural
resources therein shall be given priority concern in order
to ensure environmental stability, conserve biological
diversity, improve ecosystem functions and services, and
provide long-term ecological and economic benefits;

Reforestation as a priority measure- Reforestation shall be
undertaken as a priority measure to restore the ecosystem
functions and services of forests as well as improve the
economic and ecological benefits of local communities

concerned;

Security of tenure of stakeholders- Pursuant to. the
principles of sustainable and multi-use forest
management and equitable access to forest resources, a



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secured tenure shall be gua
concerned; and

anteed to stakeholders

vii. Professionalism in forest service - A dynamic,
professional and people-oriented forest service strongly
adhering to conservation principles shall be established
and fully supported by the State,

Section 4. Definition of Terms. As used in this Act, the following terms shall

be defined as follows:

a. “Agroforestry” refers to a strategy for the sustainable
management of land which increases their overall productivity by properly
combining agricultural crops and/or livestock with forest crops
simultaneously or sequentially through the application of management
practices which are compatible with the local climate, topography, slope, soil,
as well as the cultural patterns or customary laws of the local communities;

b. “Agricultural lands” refers to Alienable and Disposable (A&D)
lands of the public domain which have been delimited, classified and
declared as such, pursuant to the provisions of Commonwealth Act No. 141,
as amended, otherwise known as the Public Land Act;

c. “Ancestral Domains” refers to all areas generally belonging to
indigenous cultural communities/ indigenous peoples (ICCs/IPs) comprising
lands, inland waters, coastal areas, and natural resources therein, held under
a claim of ownership, occupied or possessed by ICCs/IPs, by themselves or
through their ancestors, communally or individually since time immemorial,
continuously to the present except when interrupted by war, force majeure or
displacement by force, deceit, stealth or as a consequence of government
projects or any other voluntary dealings entered into by government and
private individuals/corporations, and which are necessary to ensure their
economic, social and cultural welfare. It shall include ancestral lands, forests,
pasture, residential, agricultural, and other lands individually owned whether
alienable and disposable or otherwise, hunting grounds, burial grounds,
worship areas, bodies of water, mineral and other natural resources, and
lands which may no longer be exclusively occupied by ICCs/IPs but from
which they traditionally had access to for their subsistence and traditional
activities, particularly the home ranges of ICCs/IPs who are still nomadic
and/or shifting-cultivator:

d. “Ancestral Lands” refers to land occupied, possessed and
utilized by individuals, families and clans who are members of the ICCs/IPs
since time immemorial, by themselves or through their predecessors-in-
interest, under claims of individual or traditional group ownership,
continuously, to the present except when interrupted by war, force majeure or


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displacement by force, deceit, stealth, or as a consequence of government
projects and other voluntary dealings entered into by government and private
individuals/ corporations, including, but not limited to, residential lots, rice
terraces or paddies, private forests, swidden farms and tree lots;

e. “Assisted Natural Regeneration” or “ANR” covers any set of
activities that enhance the natural processes of forest regeneration, These
include promoting the natural establishment and subsequent growth of
indigenous forest trees, whilst preventing any factors that might harm them,
eg. competition from weeds, browsing by cattle, fire etc. ANR relies on
existing natural processes; it requires less labor input than tree planting and is
therefore a very cheap way to restore forest ecosystems. ANR is appropriate
wherever the natural processes of forest regeneration are, to some extent,
already happening. At least few seed trees/ mature seed-bearing rainforest
trees should exist nearby to provide seed rain in the area. Seed-dispersing
animals should remain common in the vicinity. Sites which already support a
high density of tree saplings and sprouting tree stumps are particularly suited
to ANR.

£ “Biological diversity or biodiversity” refers to the variability and
variety among living organisms including, inter alia, terrestrial, marine and
other aquatic ecosystems and the ecological complexes of which they are part.
This includes diversity within the species (genetic diversity), between species
(species diversity), and among ecosystems (ecosystem diversity);

g “Climate change” refers to a change in climate that can be
identified by changes in the mean and/or variability of its properties and that
persists for an extended period typically decades or longer, whether due to
natural variability or as a result of human activity;

h. “Commercial logging” refers to the cutting or felling of trees for
the purpose of disposing the cut or felled logs for monetary profits beyond
survival and subsistence;

i, “Communal forest” refers to a tract of forestland set aside and
established for and under the protection, administration, and management of
a city, municipality, or barangay as a source of wood material for fuel, shelter,
and manufactured products; as source of water for the community; and as an
area for ecotourism and/or environmental protection ot socio-economic
projects of local government units consistent with the policies and objectives
of this Act and principles of sustainable development;

j. “Community-Based Forest Management Strategy” refers to the
strategy to improve the well-being of forest dependent communities, and at
the same timé ensure sustainable management, rehabilitation and protection
of forestlands and the resources therein, through the active participation of


various stakeholders;

Kk. “Conservation” refers to the planned protection and
management of forests, wildlife and other forest resources so as to prevent
waste and ensure future use;

lima

1 “Conveyance” refers to any vehicle, vessel, device or
used in gathering and/or transporting forest products;

m. _““Co-management agreement” refers to an agreement entered
into by the DENR and a local government unit/s to protect, restore, develop
or manage forestlands, including mangroves and its forest resources, within
the geographic jurisdiction of such local government unit/s consistent with
the provisions of this Act;

n. — “Co-production agreement” refers to an agreement entered into
by and between a qualified person and the government, in accord with the
1987 Constitution, for the former to develop, utilize, and manage, consistent
with the principles of sustainable development, land or a portion of a
forestland wherein both parties agree to provide inputs and share the
products or their equivalent cash value;

© “Critical habitat” refers to a place or environment where species
or subspecies naturally occur or has naturally established its population that
are crucial to the survival of a species and essential for its conservation;

P. “Critical watershed” refers to areas designated by the Secretary
pursuant to the Wildlife Resources Conservation and Protection Act and for
their ability to supply water for domestic, agriculture and/or industrial use;

4 “Degraded forests” refers to forests with varying degrees of
disturbance or loss of structure, function, species composition and
F P
productivity of less than 60% forest cover;

f. “Delimitation” refers to the establishment of permanent
boundaries between forestlands, national parks/protected areas and
agricultural lands as a result of demarcation;

8 “Delineation” refers to the establishment of boundaries between
forestlands, national parks/ protected areas and agricultural lands as a result
of a conduct of site investigation, reconnaissance and field verification in
accordance with the criteria set by the Department;

“Demarcation” refers to the establishment of boundaries using
visible markers, monuments or known natural features/landmarks, among
others, as result of the actual ground delineation;



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u. — “Denuded forestlands” refers to forestlands that are devoid of
forest tree cover;

v. “Department” refers to the Department of Environment and
Natural Resources (DENR);

w. “Environmental Impact Assessment” or “EIA” refers to the
process of predicting the likely environmental consequences of implementing
a project or undertaking and designing the appropriate preventive,
mitigating, or enhancement measures;

x. “Environmental Compliance Certificate” or “ECC” refers to the
document issued by the Department certifying that a proposed project or

undertaking will not cause a significant negative impact on the environment;
that the proponent has complied with all the requirements of the
Environmental Impact Assessment System; and that the proponent is
committed to implement its approved Environment Management Plan found
in the Environmental Impact Statement (EIS) or mitigation measures
identified in the Initial Environmental Examination (IEE);

y. “Environmental Impact Statement System” or “EIS System’
refers to the organization, administration, and procedures that have been
institutionalized pursuant to Presidential Decree No. 1586 for purposes of
assessing the significance of the effects of any project or undertaking on the
quality of the physical, biological, and social-economic environment and
designing the appropriate mitigating and enhancement measures;

z “Environmentally Critical Project” refers to project or program
that has high potential for significant negative environmental impact;

aa. “Forest” refers to an ecosystem or an assemblage of ecosystems
dominated by trees and other woody vegetation; a community of plants and
animals interacting with one another and its physical environment. It shall
consist of trees with overlapping crown of 60-100% forest cover;

bb. “Forest guard” refers to any public officer who by the nature of
his appointment or the functions of the position to which he is appointed is
delegated by law and regulations or commissioned by competent authorities
to execute, implement or enforce the provisions of this Act and other related
laws and regulations;

cc. “Forest products” refers to goods and services derived from
forest such as, but not limited to, timber, lumber, veneer, plywood,
fiberboard, pulpwood, bark, tree top, resin, gums, wood oil, honey, bees wax,
nipa, rattan, or other forest growth such as grass, shrub and flowering plants,
the associated water, fish, game, as well as its scenic, historical, educational,



social and ecological value;

dd. “Forest resources” refers to all resources, whether biomass such
as plants and animals including its by-products and derivatives, which can be
a raw material, or non-biomass such as soil, water, scenery, as well as the
intangible services and values present in forestlands or in other lands devoted
for forest purposes;

ee. “Forest/Forest-Dependent Community” refers to a group of
people residing inside or immediately adjacent to a particular forestland who
are largely or partly dependent on the forest resources found therein for their
livelihood;

ff, “Forestlands” refers to lands of the public domain classified as
needed for forest purposes. They shall include all forest reserves, forest
reservations and all remaining unclassified lands of the public domain;

gg. “Genetic engineering” refers to genetic modification, or a special
form of biotechnology in which a section of DNA from one organism is
introduced into another, in which it does not naturally occur, in order to
produce a genetically modified organism (GMO) with favorable properties
based on the new combination of genes. The new genes in the transgenic
organism may be from an entirely different type of organism, or from a
closely related lineage.

hh, “Genetically modified organisms” or “GMOs” refers to
organisms in which the genetic material has been altered in a way that does
not occur naturally. GMOs can be bacteria, fungi, viruses, plants or animals,
with the exception of human beings;

ii, “Grazing land” refers to a portion of the public domain which
has been set aside, in view of its topography and vegetation, for the raising of
livestoc!

jj, “Greenhouse gas” refers to any gas that absorbs infrared
radiation in the atmosphere. Greenhouse gases include water vapor, carbon
dioxide (CO), Methane (CHy), nitrous oxide (No), halogenated
fluorocarbons (HCFCs), ozone (Qs), perfluorinated carbons (PFCs) and
hydrofluorocarbons (HFCs);

kk. “Indigenous Cultural Communities/Indigenous Peoples” or
“ICCs/1Ps" refers to a group of people or homogenous societies identified by
self-ascription and ascription by others, who have continuously lived as
organized community on communally bounded and defined territory, and
who have, under claims of ownership since time immemorial, occupied,
possessed and utilized such territories, sharing common bonds of language,



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customs, traditions and other distinctive cultural traits, or who have, through
resistance to political, social and cultural inroads of colonization, non-
indigenous religions and cultures, became historically differentiated from the
majority of the Filipinos. ICCs/1Ps shall likewise include people who are
regarded as indigenous on account of their descent from the populations
which inhabited the country, at the time of conquest or colonization, or at the
time of inroads of non-indigenous religions and cultures, or the establishment
of present state boundaries, who retain some or all of their own social,
economic, cultural and political institutions, but who may have been
displaced from their traditional domains or who may have resettled outside
their ancestral domains;

ll “Industrial Forest Management Agreement” or “IEMA” refers to
a production-sharing contract entered into by and between the Department
and a qualified person, whether natural or juridical, wherein the former
grants to the latter the exclusive right and responsibility to invest in, develop,
manage, and protect a defined area of the production forestland, including
the establishment, management and utilization of industrial timber forest
plantation, consistent with the principle of sustainable development,
primarily to supply the raw material requirements of wood-based processing,
and energy-related industries and wherein both parties share in the benefits
therefrom;

mm, “Industrial Tree Plantation” or “ITP” refers to any tract of land
planted mainly to timber producing species, including rubber and/or non-
timber species primarily to supply the raw material requirements of forest-
based industries, energy-generating plants, and related industries.;

nn. “Joint venture agreement” refers to an agreement where a joint-
venture company is organized by the State and another person for protection,
restoration and utilization, development and management of forestlands
consistent with the prescribed activities allowed under this Act, with both
parties having equity shares. Aside from earnings in equity, the State shall be
entitled toa share in the gross output;

0. “Kaingin” refers to a portion of the forest land, whether
occupied or not, which is subjected to shifting and/or permanent slash-and-
bum cultivation having little or no:provision to prevent soil erosion;

pp. “Kaingin making” refers to a process employed to establish a
kaingin;

qq. “Key Biodiversity Areas” refers to. places of international
importance for the conservation of biodiversity;


rr. “Master Plan for Forestry Development” refers to the twenty-
five (25) year strategic program of the Forestry Sector envisioned to guide its
long term development. This program includes: (a) policy and institutional
development; (b) restoration and rehabilitation c) watershed and forestry
development; (d) livelihood and poverty reduction; and (e) timber/non-
timber industry development;

ss, “National Park” refers to the land of public domain classified as
such in the 1987 Philippine Constitution which includes all areas under the
National Integrated Protected Areas System (NIPAS) pursuant to RA 7586,
primarily set aside and designated for the conservation of native plants and
animals, their associated habitats and cultural diversity;

tt “Non-government organization” or “NGO” refers to a non-
stock, non-profit, and voluntary organization;

uu. “Non-timber based industries” refers to various industries that
are dependent on raw materials or products derived from forests such as, but
not limited to, rattan, bamboo, vines, latex, resins, saps, essences, fruits,
flowers or wild flora and fauna;

vv. “Non-timber charges” refers to the levy imposed and collected
by government on various industries that are dependent on raw materials or
products derived from forests such as, but are not limited to, rattan, bamboo,
vines, latex, resins, saps, essences, fruits, flowers or wild Hora and fauna, as
well ecological and aesthetic services;

ww. “Non-timber forest products” refers to all products gathered
from the forest that are not timber, which include, but are not limited to,
rattan, bamboo, vine, herb, exudates, gum, resin, beeswax, gutapercha, and
almaciga resin;

xx. “Permit” refers to a short-term privilege or authority granted by
the State to a person to utilize any limited forest resource or undertake a
limited activity within any forest land without any right of occupation,
possession, and ownership therein;

yy: “Person” refers to a natural or juridical person, including local
forest communities and /or indigenous peoples organized in accordance with
law or custom;

zz. “Plantation forestry” refers to the planting, of one or two species
for the sole purpose of harvesting;

aaa, “Primary forest” refers to forest which have never been subject
to human disturbance or has been so little affected by hunting, gathering and


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tree cutting that its natural structure, function and dynamics have not
undergone any changes that exceed the elastic capacity of the ecosystem;

bbb. “Processing plant” or “Processing mill” refers to any
mechanical set-up, device, machine or combination of machines used for the
conversion of logs and other forest raw materials into lumber, fiberboard,
pulp, paper or other finished wood products;

cce. “Production forestlands” refers to the forestlands defined under
Sec, 8(b) of this Act;

ddd, “Production sharing agreement” refers to an agreement
wherein the State grants a person/s, who provides all the necessary financing,
technology, management and personnel, the exclusive right to conduct
forestry development activities within but not title over, the contract ar
shares in the production whether in kind or in value as owner of forest
product therein;

and

eee, “Protected Areas” refers to identified portions of land and water
set aside by reason of their unique physical and biological significance,
managed to enhance biological diversity and protected against destructive
human exploitation. They shall constitute the areas established under the
National Integrated Protected Areas System (NIPAS) pursuant to RA 7586
and shall fall under the National Park classification of public domain;

fif, “Protection forestlands” refers to the forestlands defined under
Sec. 8 (a) of this Act;

ggg. “Reforestation” refers to all land use activities directed towards
restoration, establishment and sustained management using native species of
diversified vegetation on denuded, degraded and/or marginal lands,
including but not limited to the planting and tending, of timber, orchard and
multi-use trees;

hhh. “Reservation” refers to an area of the public domain reserved by
law for a specific purpose;

iii, “Restoration” refers to the bringing back of the forestland to its

original state in terms of species compo:
productivit

jon, structure, function and

jij. “Restoration zones” refers to the area where restoration
activities are conducted and where the original vegetation shall be restored;

kkk. “Road” refers lo bulldozed land which is accessible by at least a
two-wheel motorized vehicle;


Il. “Rotation” refers to the number of years between the initial
establishment of @ plantation and the time when it is considered ready for
harvesting;

mmun. “Secondary forest” refers to a former forest that was logged
over and is characterized by residuals;

nnn, “Secretary” refers to the Secretary of the DENR;

000. “Semi-finished wood products” refers to wood products
requiring final stages of manufacture and/or assembly such as, but not
limited to, window components, table tops, veneer, tongue and groove
planks, steps for stairs, and other similar products;

ppp. “Silvicultural practices” refers to any action by man to further
improve or enhance the stand growth asa whole or the single tree for future
harvest including assisted natural regeneration and tree surgery, among
others;

qqq. “Subdivision” refers to a tract or parcel of land partitioned into
individual lots, with or without improvements thereon, primarily for
residential purposes

ni, “Sustainable development” refers to development that meets the
needs of the present without compromising the ability of the future
generations to meet their own needs;

sss. “Sustainable forest management" or “SFM” refers to the
process of managing a forest to achieve one or more clearly specified
objectives of management with regard to production of continuous flow of
desired forest products and services without undue reduction of its inherent
values and future productivity and without undesirable effects on the
physical and social environment;

tt “Tenure” refers to the guaranteed peaceful possession and use
of specific forest land area and specific resources found therein, covered by an
agreement, contract, or grant which cannot be altered or abrogated without
due proces

uuu. “Timber-based industries” refers to industries that are
dependent on wood as the principal raw material including but not limited to
sawmilling, pulp and paper making, and plywood and veneer manufacturing
or the upstream wood-based industries, as well as the secondary and tertiary
wood processing, or downstream industry such as moldings and furniture
manufacturing;



533 vw. “Timber charges” refers to the levy imposed and collected. by
534 the government on timber products cut, harvested, or gathered from
335 production forestlands and from alienable and disposable (Aé&D) lands in
accordance with Republic Act No. 7161;

www. “Timber License Agreement” or “TLA” refers to a privilege
granted by the State to a person to utilize forest resources within an area with
the right of possession and occupation thereof to the exclusion of others
except the government, but with the corresponding obligation to develop,
protect, and rehabilitate the same in accordance with the terms and conditions
set forth in the said agreement;

xxx. “Timber plantation” refers to a tree stand established by
planting and/or seeding. ‘The stand is either of introduced species (all
planted stands), or an intensively managed stand of any indigenous species,
which meets all the following criteria: one or two species at plantation, even-
aged class, and regular spacing for the primary purpose of harvesting timber
or any of its by-product;

yyy. “Transgenic” refers to a genetically modified organism (GMO)
or genetically engineered organism (GEO) whose genetic material has been
altered using genetic engineering techniques. It is the process of introducing
an exogenous gene into a living organism so that the organism will exhibit a
new property and transmit that property to its offspring;

zzz. “Watershed Continuum’ refers to an area consisting of the
watershed and its divide including its connection from the headwaters to the
reel;

aaaa, “Watershed Continuum Management” or “WCM" refers to a
management system that will provide the optimum social, cultural, economic
and environmental benefits to the greatest number of people, particularly
those living in, adjacent to, or downstream of, individual watershed areas,
while maintaining the biological and cultural heritage of the country. It is the
holistic multiple use and sustainable management of all the resources within a
spatial unit- known as the watershed. The Watershed Continuum
Management is based on the following guiding principles: (1) Ecological
sustainability; (2) Social and .cultural sustainability; (3) Economic
sustainability; and (4) Institutional sustainability;

bbbb. “Watershed Reservation" refers to a forestland reservation
established to protect or improve the conditions of water yield thereof or
reduce sedimentation;

cece. “Wildlife” refers to wild forms and varieties of flora and
fauna, in all developmental stages; and



vw. “Timber charges” refers to the levy imposed and collected by
the government on timber products cut, harvested, or gathered from
production forestlands and from alienable and disposable (Ag&D) lands in
accordance with Republic Act No. 7161;

www. “Timber License Agreement” or “TLA” refers to a privilege
granted by the State to a person to utilize forest resources within an area with
the right of possession and occupation thereof to the exclusion of others
except the government, but with the corresponding obligation to develop,
protect, and rehabilitate the same in accordance with the terms and conditions
set forth in the said agreement;

xxx, “Timber plantation” refers to a tree stand established by
planting and/or seeding. The stand is either of introduced species (ail
planted stands), or an intensively managed stand of any indigenous species
which meets all the following criteria: one or two species at plantation, evel
aged class, and regular spacing for the primary purpose of harvesting timber
or any of its by-product;

yyy. “Transgenic” refers to a genetically modified organism (GMO)
or genetically engineered organism (GEO) whose genetic material has been
altered using genetic engineering, techniques. It is the process of introducing
an exogenous gene into a living organism so that the organism will exhibit a
new property and transmit that property to its offspring;

zzz. “Watershed Continuum’ refers to an area consisting of the
watershed and its divide including its connection from the headwaters to the
reef;

aaaa. “Watershed Continuum Management” or “WCM" refers (o a
management system that will provide the optimum social, cultural, economic
and environmental benefits to the greatest number of people, particular
those living in, adjacent to, or downstream of, individual watershed areas,
while maintaining the biological and cultural heritage of the country. It is the
holistic multiple use and sustainable management of all the resources within a
spatial unit- known as the watershed. The Watershed Continuum
Management is based on the following guiding principles: (1) Ecological
inability; (2) Social and . cultural sustainability; (3) Economic
sustainability; and (4) Institutional sustainability;

bbbb. “Watershed Reservation" refers to a forestland reservation
established to protect or improve the cond of water yield thereof or
reduce sedimentation;

cece. “Wildlife” refers to wild forms and varieties of flora and
fauna, in all developmental stages; and


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dddd. “Woodlots” refers to a track or plot of land planted with fast
growing tree species basically for fuelwood purposes. Woodlot is the
major component in Rotational Woodlot Agroforestry Systems which aim
to satisfy house and regional fuelwood demand while reducing harvesting
pressure on local forests, Rotational Woodlot Agroforestry Systems
include the following components: (1) Establishment, which includes tree
and crop intercropping; (2) Fallow, which pertains to build up of wood
and soil fertility; and (3) Post-fallow, which pertains to wood harvesting
and sequential cropping,

CHAPTER IL
CLASSIFICATION OF PERMANENT FORESTLANDS

Section 5, — Permanent Forestlands. All forestlands currently classified as
such.

Section 6, —Iustruments within Permanent Forestlands, Titles, settlements,
permits, lease, and/or agreements within critical habitats, critical watershed areas,
protected areas, important biodiversity areas (IBAs), and key biodiversity areas
(KBAs), shall be reviewed, and its legality be determined. All erroneous titles,
settlements, permits, leases and/or agreements or non-compliance to and in
violation of provisions of agreements shall duly be cancelled or revoked; Provitled,
‘That the applicable provisions of the Indigenous Peoples Rights Act of 1997 (IPRA)
shall be respected. The LGU, upon endorsement from the Forest Management Board
or motu proprio, shall recommend to the Secretary revocation of these instruments.
‘The Secretary, upon recommendation or motu proprio shall revoke such instrument,

Section 7. Additional Areas to be Included as Permanent Forestlands, The
following lands are needed for environmental protection and forestry purposes and
shall not therefore be classified as agricultural lands or for other land use:

a. Isolated patches of forest, regardless of size of area, with
rocky terrain or which protect a spring for communal use;

b. All mangroves and swamplands including twenty-meter
wide strips thereof facing oceans, lakes and other bodies of water not yet
classified as alienable and disposable lands;

c. Ridge tops and plateaus regardless of size found within or
surrounded wholly or partially by forestlands where headwaters emanate;

d. — Twenty-meter wide strips of land from the edge of the
normal high waterline of rivers and streams with channels of at least five
(5) meters wide which are not yet classified as alienable and disposable;


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e. Areas needed for other purposes of public interest such as
research or experimental purposes and others; and

f£. Areas considered environmentally critical because of their
vulnerability to damage from landslides, volcanic eruptions, and other
natural causes

Owners who have acquired vested rights over lands enumerated above are
required to implement soil and water conservation measures, in coordination with
the Department and the appropriate local government unit. An Environmental
Compliance Certificate (ECC) shall be required in these environmentally critical
areas in accordance with existing law: Provided, That the Department, in
coordination with the concerned local government unit, shall immediately take the
necessary steps to expropriate the property concerned, to impose the necessary fines,
penalties and costs of rehabilitation and implementation of the required soil and
Water conservation measures, and to cancel and/or amend any title used thereon or
impose fines subject to the following conditions:

a, Failure of the owner, after due notice, to implement appropriate
soil and water conservation;

b. Failure of the owner/s to comply with ECC requirements when
required;
©. The issuance of titles over such areas was accomplished through

fraud, deceit, misrepresentations or other

When public interest so requires,

Provided further, That the concerned LGUs may recommend to the DENR to
file expropriation proceedings given the conditions enumerated in this provision.

Section 8. Sub-Classificntion of the Permanent Forestlands. ‘The permanent
forestlands shall be sub-classified into the following categories according to primary
use;

a. Protection forestlands shall consist of all natural and
restored forests including areas identified as key biodiversity areas, critical
habitats, freshwater, swamps, and marshes, all areas along the bank of
rivers and streams, and the shores of the seas and lakes throughout their
entire length and within a zone of three (3) meters in urban areas, twenty
(20) meters in agricultural areas, and forty (40) meters in forest areas,
along their margins which are subject to the easement of public use in the
interest of recreation, navigation, floatage, fishing and salvage shall also be
sub-classified as protection forestlands. All extractive industries such as,



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but not limited to, logging and mining are banned in these protection
forestlands; Provided, That the provisions of the IPRA shall be respected;

b. Production forestlands shall be all forestlands not sub-
classified as protection forestlands defined in this Section, and shall be
devoted to the production of timber and/or non-forest products or the
establishment of industrial tree plantations, tree farms, communal forests,
agroforestry, grazing, or as multiple-use forests including water-based
energy areas such as but not limited to hydro and geothermal
reservations: Provided, That they shall be managed, developed, and
utilized in accordance with a LGU-approved management plan consistent
with the prescribed Forestry Master Plan and based on sustainable forest
management principles: Provided, further, That the department may change
the sub-classification of specific areas of production forestlands into
protection areas and recommend to Congress their establishment as part
of the integrated protected area systems in accordance with the NIPAS
‘Act, of as critical habitat under the Wildlife Resources Conservation and
Protection Act: Provided finally, That ancestral domains located within
protection and production forests shall be governed by customary laws

c. Restoration areas are areas to be designated in the
management plan as such, Designation of a restoration area is
compulsory in all forest management plans.

Section 9. Demurcation and delimitation, Upon approval of this Act, the
Congress shall provide funds for the Department to demarcate on the ground the
actual land classification lines; Provided, That the Secretary, upon completion of the
actual assessment of the demarcated land classification lines, shall recommend to
Congress the delimitation of the forestlands found to be still suitable and capable for
its purpose, Provided further, ‘That the Department shall submit an annual
accomplishment report and that within five (5) years, has caused the complete
demarcation and delimitation of land classification lines.

Section 10. Availability of records. Records pertaining to the specific limits of
forestlands shall be made available to the public upon request. Moreover, the
Department shall furnish all provincial, municipal and city government copies of the
maps of permanent forestlands located within their respective territorial
jurisdictions.

CHAPTER IIL
ADMINISTRATION AND MANAGEMENT OF
FORESTLANDS AND ITS RESOURCES

Section 11. _ Jurisdiction and control of forestlands. The Department shall be the
primary agency responsible for the conservation, restoration and the sustainable


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utilization of forestlands and the unclassified lands of the public domain, It shall
formulate a national forestry master plan and the policies promulgated in this Act. In
coordination with LGUs and other government agencies, it shall ensure that
forestlands and unclassified lands of the public domain are managed, conserved,
developed, utilized and protected consistent with the policies promulgated in this
‘Act; Provided, that the management plan for protected areas shall be prepared in
jecordance with the provisions of the NIPAS Act, the Wildlife Resources Act, the
Local Government Code, and the IPRA, and other relevant laws and international
covenants, as well as other pertinent laws; Provided further, That certain functions
and powers of the Department may be devolved to the local government units

Section 12. Co-Management Agreement for the Devolution of Functions. “The
Department, the Department of Interior and Local Government, and the concerned
LGUs shall execute a’co-management agreement, which shall contain the program
and schedule by which functions shall be strategically devolved, providing for
capacity-building and empowerment mechanisms,

Section 13, Powers and Responsibilities of the LGUs. Pursuant to the pertinent
provisions of Republic Act. No. 7160 or the Local Government Code, LGUs shall
Share the responsibility in the sustainable management and utilization of forest
vesources within their territorial jurisdiction including those assigned by law to other
government agencies. The LGU and the Department shall jointly undertake the
preparation and implementation of forestland use and watershed continuum
management plans, consistent with the Ancestral Domain Sustainable Development
and Protection Plan (ADSDPP) and in consultation with other government agencies,
Tocal communities, nion- government organizations and other sectors. Partnerships
with LGUs and local communities are highly encouraged, Such plans shall be fully
funded and made an integral component of the LGU's Comprehensive Land Use
Plan (CLUP)

‘The devolved functions include, but are not limited to, the following:

a, Implementation of community-based forestry projects,
Community-based Forest Management Agreements;

b. Establishment of reforestation projects except in protected
areas and critical watersheds;

c. Completed family and contract reforestation projects;

d. Forest Land Management Agreements

e. Community Forestry Projects;

f Management and control of forests located in the LGU's

jurisdiction;


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g Management, protection, rehabilitation and maintenance of
small watershed areas which are sources of local water
supply as identified or to be identified by the DENR;

bh, Enforcement of forestry laws; and

i. Prevention of forest fires, integrated pest management and

protection against forest invasive species.

Section 14. Multisectoral participation, In formulating, conservation
and management plans and programs, multisectoral participation shall be
required.

Section 15. Local Government Unit Consent and Consultation.
Proponents of all forestry projects to be implemented in the LGUs territorial
jurisdiction shall strictly comply with Sections 26 and 27 of the Local Government
Code. 3

Section 16, Forest Bound, A forest board (Board) shall be created at the
Municipal level which shall be composed of a representative from the LGU and
representatives of different sectors including but not limited to, women, farmess
ficherfolks, and indigenous peoples, and shall set the policy direction for the
management, utilization and development of forestlands and resources found within
their respective jurisdictions in accordance with the watershed continuum plan.

Section 17. Functions of the Forest Board, ‘The Board shall be responsible for
the over-all policy direction for the management of the forestlands and forest
resources found within their respective jurisdictions in accordance with the
provisions of this Act. It shall review and recommend implementation of programs
And projects and perform oversight functions on matters pertaining to environment
shal natural resources, It shall also participate in the review and recommend relevant
policies for the protection, conservation and restoration efforts within the continuunt
ped ensure the contribution of the forestry sector to national economy, ecological
Sustainability and sustainable development closely adhering to the principles and
action plans set under Philippine Agenda 21 and its revised versions. It shall
moreover facilitate the initiation of the LGU's participation in the devolution
program and shall monitor the transfer and implementation of devolved functions at
the LGU,

Section 18. Creation of a Municipal Enoironment and Natural Resources Offic
A Municipal Environment and Natural Resources Office (MENRO) is hereby
created, including the position for the Municipal Environment and Natural
Resources Officer, The LGU shall ensure that funds are available for the operations
and salaries of personnel for this Olfice



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Section 19. Qualifications of a Municipal Environment and Natural Resources
Officer. The Municipal Environment and Natural Resources Officer should have
background in planning, natural and environmental science, and should be civil
service eligible

Section 20. Functions of the MENRO, The MENRO shall facilitate the
preparation of management plans. It shall recommend to the Board relevant policies
for the protection, conservation and restoration efforts within the continuum. It shall
evaluate applications for forest management agreements; monitor the performance
of holders of all tenurial instruments issued by the LGU and Department. “The
MENRO may recommend to DENR appropriate action with regard to the
implementation of pertinent Jaws, rules and regulations, The MENRO shall exercise
visitorial powers over the forestlands,

Section 21. Forest Management Committee within a watershed continuum. A
forest management committee shall be created under the Municipal Development
Council, Municipalities/cities falling within the same watershed continuum shall
foun a forest management committee within the Provincial Development Council,
Provided further, That provinces falling under the same watershed continuum will
create a committee within the Regional Development Council. These committees
Shall be responsible for the preparation of the required overall management plans, in
relation to the direction set by their respective Forest Boards.

Section 22. Forestlands under Other Government Agencies. Forestlands and/or
portions thereof which have been assigned by law to the administration and
ranagement of other government agencies for a specific purpose prior to the
passage of this Act shall remain under the administration and management of these
government agencies which shall be responsible for their conservation, protection,
went restoration, ‘The Secretary and the concerned local chief executive or their
respective duly authorized representative shall exercise visitorial powers over these
forestlands. Moreover, these forestlands shall be administered in accordance with a
forest management plan embodied in the comprehensive forest management and
land use plan of the LGU, which shall be prepared by the concerned management
committee of the watershed continuum level within one (1) year from the effectivity
ct this Act, Said multisectoral body shall periodically review, monitor, and evaluate
the implementation of the said management plan, Provided, That the harvesting of
forest resources and building of roads and other infrastructure therein shall be
undertaken only with the prior approvalof the LGU upon the endorsement of the
local forestry boards, and after compliance with EIS and ECC requirements: Provide!
further, That the LGU shall endorse to the Secretary who shall recommend {0
Congress or the President of the Philippines the reversion to the LGU of the
jurisdiction and control over forestlands that are no longer needed nor used for the
purpose by which they have been constituted of in case the agency concerned fails to
Pehabilitate, protect, and conserve the forestland resources in accordance with the
approved management plan. The LGU, in coordination with its forestry board and
vesistent with the watershed continuum plan, shall determine the use of the



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reverted forestlands.

Section 23. Forest Resources within Alienable and Disposable Lands. All forest
resources planted or raised within alienable and disposable lands belong to the
holder of the instrument giving rights to the claimant, who shall have the right to
sell, contract, convey or dispose of the same subject to a certification process 10 be
developed by the Department, The Department shall prepare the guidelines in
coordination and cooperation with LGUs and multisectoral consultations. Holders of
said instruments who register their forests lands for forestry purposes with the LGU
Shall be assisted in the preparation of a management plan consistent with the
‘watershed continuum management plan, and shall be entitled to appropriate
incentives provided under Section 44 herein, on reforestation in private land
Provided, That alienable and disposable lands devoted to the planting and harvesting
of forest resources shall remain subject to the provisions of Republic Act No. 6657 or
the Comprehensive Agrarian Reform Law or any other similar law that may be
enacted.

Section 24. Forest Resources within Production Forestlands. Resources,
including non-timber forest products, its by-products and its derivatives, whether
aturally growing, planted or raised, which have been taken or have been applied
with some silvicultural practices, within production forestlands shall be issued the
appropriate permit, agreement or clearance. Any declaration of forest resources a
threatened shall be in accordance with the Wildlife Act and other relevant laws.

Section 25, Légging in Production Forestlands. To ensure the conservation
and sustainable use of forest resources in production forestlands, holders of timber
licenses, permits and/or agreements shall submit to the LGU an Integrated
Operations Plan (IOP) containing strict environmental guidelines such as ECC
compliance. All forest development activities such as logging, reforestation, timber
stand improvement, forest protection, and delivery of community service within att
rea covered by timber concessions shall be consolidated under the JOP, which shall
be prepared by or under the supervision of an accredited private registered forester
whose signature and dry seal shall appear in the plan and the supporting documents
submitted for this purpose.

Section 26. Forest Resources within Protection Forestlands. Only non-timber
forest products shall be allowed to be extracted from protection forestlands and shall
be issued the appropriate permit, agreement or license, Provided, that harvesting or
gathering of timber for subsistence use of indigenous communities and forest
ee mmunities shall be allowed but only in woodlots established by the communities.
‘Any declaration of forest resources as threatened, and other restrictions shall De in
ordance to the Wildlife Act.

Section 27. Absolutely Prohibited Activities in Protection Forestlacs.
Commercial logging, mining and other similar extractive activities such as but not
limited to treasure hunting shall be absolutely prohibited in protection forestlands.


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Section 28. Review of Reseroations within Protection Forestlands. All
reservations made within protection forestlands shall be reviewed. Reservations
which are contrary to the provisions of this Act, including, among others, mineral or
settlement reservations, shall be withdrawn.

Section 29. Commercial Logging Ban in Protection forestlands. There shall be a
permanent ban on commercial logging activities in all protection forests defined,
categorized, and sub-classified in Section 8(a) herein. No licenses, permits, or
agreements to cut any timber therein shall be issued.

Section 30. Protection Forestlands covered by Existing Perinits, Licenses aiid/or
Agreements. All existing permits, licenses and agreements shall be reviewed, and, if
protection forestlands are found within an agreement or licensed area, such
protection forestlands shall be immediately excised from said permit, license and/or
fgreement, and the holder of the agreement or license shall establish a buffer zone
and delineate their boundaries with the production forestlands, marking the same
with concrete monuments, road, or infrastructure, or any other visible, permanent,
and practicable signs.

Section 31. Duty of the License Permit-holder, In coordination with the
concerned LGU, the agreement- or license-holders shall protect and conserve such
protection area following a plan consistent with the prescribed management plan for
key biodiversity areas or similar strategies by the Department. The agreement: oF
license-holder concerned shall be accountable for the destruction of such protection
forestlands that did not result from force majeure, and such destruction shall serve as
basis, in addition to the other violations enumerated in this Act hereof, for the
termination or revocation of the agreement, license, or permit, and the filing of
proper charges under the NIPAS Act and pertinent forestry laws, rules and
regulations, In the absence of a contractor or agreement holder over such
production forestlands, the delineation of said boundary shall be undertaken and
prioritized by the Department.

Section 32. Non-Extension of Timber License Agreements. No extensions shall
be made on any existing TLA, and the area covered by the agreement shall
automatically be sub-classified as protection forestland after the representatives of
the Department, the LGUs concerned, the Department of Agrarian Reform, NGOs,
peoples’ organizations, and other stakeholders hadl excluded degraded areas that
may be subject of a reforestation project.

Section 33. Forest Resources within Ancestral Domains/Ancestral Lands, When
forest resources are within ancestral domains/ ancestral lands which are otherwise
production or protection forestlands, aside from the necessary permit, license or
agreement, the genuine free, prior and informed consent of the indigenous
communities shall also be secured, Provided, That if the indigenous communities will
themselves harvest these resources for their subsistence or survival use, the
provisions of IPRA shall apply and no permits shall be required as owners of such


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resources, Provided finally, That, if the indigenous peoples will themselves harvest
such resources for commercial purposes, they shall be subject to the same limitations
and conditions as provided by this Act.

‘The National Commission on Indigenous Peoples (NCIP) shall coordinate and
consult the Department in providing assistance to the indigenous peoples in the
sustainable management and development of forest resources within ancestral lands
and domains.

Section 34. Mandatory EIA. Any permit, license, agreement or any other
instrument to develop or use forestlands or resources therein, including, those found
within ancestral domains/lands that would result in severe soil erosion or
environmental degradation shall be subject to the provisions of Environmental
Impact Assessment (EIA) in accordance with Presidential Decree No. 1151 or the
Philippine Environmental Policy, Presidential Decree No, 1586, Establishing, an
Environmental Impact Statement System, and this Act.

CHAPTER IV
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT

Section 35. Forestry Master Plan. The Department shall periodically prepare
the map, revisit or review the Forestry Master Plan in consultation with local
stakeholders, and shall revise the said plan according to the provisions of this bill,
taking also into consideration biodiversity conservation, carbon sequestration and
other matters of the same import. The Forestry Master Plan shalll be presented to all
LGUs, and other stakeholders upon completion and shall be posted in conspicuous
areas and made accessible to the public.

Section 36. Sustainable Forest Management Planning. Subject to vested or
prior rights, the Department, in consultation and coordination with LGUs, other
government agencies, Jocal communities, non-government organizations, individual
and corporate entitiés, private sectors, academic and research institutions, and other
concerned sectors shall, within one (1) year from the effectivity of this Act, develop
and adopt a sustainable forest management strategy for each well-defined watershed
or other appropriate forest management unit based on criteria, indicators, and
standards for sustainable forest management which, at their minimum, address the
following requirements: .

Rational allocation of forestland uses and promotion of land use
practices that increase productivity and conserve soil, water, and
other forestland resources;

b. Protection of existing forest resources and conservation of
biodiversity;


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c. Restoration of denuded areas, making use of indigenous tree
species for biodiversity conservation in protection forests and
buffer strips of water channels and bodies;

a

lishment of tree plantations in production forest lands, private
Jands, and alienable and disposable lands;

Enhancement of the socio-economic well-being of _ local
communities including indigenous peoples who are largely
dependent on the forest for their livelihood;

{Promotion of closer coordination between and among the
Department, LGUs, other national agencies, non-government
organizations, local communities, the private sector, academic and
research institutions and other entities in the sustainable
management of forestlands;

g: Adoption of community-based forest management as a principal
strategy in the management of forestlands and resources; and,

h. Harmonization and integration of the forest management plan of
forestlands and resources with other plans, such as the forest
management plan and the land use plans of the LGUs, protected
areas management plans in areas covered by the same, critical
habitat management plan, barangay development plan, CLUP of
cities and municipalities and physical framework plans of the
provinces and the regional development plans, and be consistent
with the ancestral domain management plans and protected area
management plans areas covered.

‘The Department shall continue to adopt the Master Plan for Forestry
Development subject to periodic review every five (5) years.

Section 37, Watershed Continuum Managenient Strategy. The Watershed
Continuum Planning and Management Framework in Environment and Natural
Resources shall be adopted. The strategy for improved watershed resources
management shall be demand-driven, community-based, and multiple and
sustainable-use considering national priorities and concerns of local stakeholders:
Watershed continuum management programs initiated by the government shall be
guided by ecological, socio-cultural, economic, and institutional sustainability
principles. A National Watershed Information System shall be developed to guisle
policy formulation, program development, and implementation of watershed
continuum management initiatives. The Department in consultation with the LGUs
shall identify the watershed continuum in the country and provide the maps for
each.



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Section 38. Prioritization of watersheds. A system of prioritization of
watersheds shall be'pursued considering the following:

a. __ Biodiversity and environmental enhancement;

b. Cultural and historical value;

Water supply for domestic, irrigation, power, industrial, and
commercial use;

d. Contribution to the economy; and

e. Effect on downstream areas.

Section 39. Forest Resource Database and Monitoring System. Areas identified
by the Department as forests as defined under this Act shall be verified and
validated by the Forest Development Center, including those within ancestral
domains and lands, A centralized forestland resource database shall be made
available to the public at all times, online if possible, which shall consist of
comprehensive updated information on the physical, social, economic, biological,
environmental and cultural components of the country’s forestlands and shall
include a log control monitoring or timber identification system to enable the
Department and its field offices to track the movement or transfer of timber and
other forest products from a forestland source to their end users. The Department
shall conduct and/or update forest resource inventory at least once every five (5)
years to ensure effective management.

Section 40, Environmental Impact Assessment, Resource Accounting aml
Valuation, All new environmentally critical projects to be implemented in
forestlands, such as harvesting, grazing and other special uses, mineral prospecting
and exploration, and road, infrastructure, and mill construction, shall be subject to
Environmental Impact Assessment (BIA) in accordance with Presidential Decree No.
1151 or the Philippine Environmental Policy, and Presidential Decree No. 1586,
Establishing an Environmental Impact Statement System. A scientific resource
valuation of impacts of affected biophysical and environmental elements, and an
extended benefit cost analysis shall be used in the BISS. The Department shall design
and implement a system of regular perigdic monitoring and assessment using, the
Criteria and Indicators as framework and shall formulate appropriate standards as
basis for assessing progress towards sustainable forest management. Furthermore,
the Department shall design and implement an appropriate natural resources
accounting and valuation system for various forestry initiatives. The Department
shall establish the total value of forestlands based on multiple uses, including their
environmental services.


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CHAPTER V
REFORESTATION AND RESTORATION

Section 41. Restoration in Protection Forestlands. The restoration of all critical
watersheds and critical, denuded, and degraded forests within protection areas shall
be prioritized. Only the use of indigenous or native species in the restoration and
rehabilitation of protection areas shall be adopted to enhance biological diversity
therein, The LGUs in coordination with the Department, other government agencies,
NGOs, local residents and communities, and other sectors concerned, shall identify
and prioritize forestlands to be reforested. The LGU, consistent with the watershed
continuum plan and the corresponding municipal forest land use plan may enter
into agreements with qualified persons, including forest community organizations,
in the restoration of protection forestlands.

Section 42. Identification of Restoration Forestlands. LGUs, in cooperation
with the DENR and other government agencies, NGOs, local residents and
communities shall identify and prioritize forestlands to be restored, Provided, priority
restoration shall be a band of 200 meters from the boundary of protection areas and
protected areas, abandoned mines and abandoned and idle fishponds for mangrove
testoration, For mangrove forests, the LGU shall prepare a rehabilitation plan to
restore mangroves in their area, Provided further, That an accelerated restoration
program in such identified priority protection forestlands shall be undertaken to
raise the forest cover therein at least fifty percent (50%) of the prioritized area within
five (5) years and eighty percent (80%) of the area within ten (10) years from
effectivity of this Act, The LGU shall allot funds to effectively accomplish restoration
either by its own or through permit, license and/or agreement in protection
forestlands. The Department or other agencies responsible for restoration shall give
priority to local communities in the granting of technical and financial assistance for
restoration activities, Provided finally, That assisted natural regeneration (ANR) shall
be encouraged in protection forestlands.

Section 43. Reforestation or Tree Plimtation Development in Production
Forestlands, In accordance with Section 50 herein, the LGU may enter into joint
venture, co-production, or production-sharing agreement with qualified persons to
reforest or to develop tree plantations in production forestlands, Provided, that palm
plantations and the like shall not be allowed in production forestlands.

Section 44. Reforestation in Forkstlands under the Jurisdiction of Other
Government Agencies. Government agencies and institutions having management
control over forestlands pursuant to a law or grant shall be responsible for the
reforestation of denuded and degraded portions of such forestlands. The
reforestation program of these agencies shall aim to increase the vegetation of the
degraded areas using native species, to be identified jointly by the Department and
agency concerned and multisectoral stakeholders. The concerned agency in
coordination with the LGU shall prepare the reforestation plan, consistent with the
watershed continuum plan and determine the ratio of forested areas at any given


time. Failure to reforest denuded and/or degraded forestland identified in the
reforestation plan within the period herein prescribed shall be sufficient ground to
request for reversion of the said forestlands to the jurisdiction and control of the
LGU: Provided, however, That in areas where Community-based Forest Management
Strategy (CBFMS) shall be implemented or where there are existing facilities for
basic services such as water and power as allowed by the Department pursuant to
the provisions of this Act, the completion of the reforestation program shall be
subject to the conditions provided in the instrument to be awarded by the
Department and the ‘agency concerned to the participating local community or
individual or in the Forest Management Agreement of contractors operating such
facilities for basic services, as approved by the Department. Provided finally, that
whenever applicable, the use of ANR shall be preferred and community-based forest
management encouraged.

Section 45, Reforestation in Alienable and Disposable Lands and/or Private Lands.
Reforestation or the establishment of tree farms or tree plantations in private lands
guided by the watershed continuum plan shall be encouraged: Provided, That such
private lands and other alienable and disposable lands are not prime agricultural
lands as determined or certified by the Department of Agriculture (DA). The private
landowner(s) shall also be entitled to the incentives provided for under Section 46
herein: Provided, That such private tree plantations are duly registered with the
Department. Whenever applicable, use of ANR shall be preferred and community-
based forest management encouraged

Section 46, Incentives of Reforestation or Restoration within Production
Forestlands. To encourage qualified persons to engage in restoration or reforestation
activities, the following incentives shall be granted:

a, Upon the premature termination of the agreement at no fault of the
holder, all depreciable permanent and semi-permanent
improvements such as roads, buildings, and nurseries including the
planted and standing trees and other forest crops introduced and to
be retained in the area shall be properly evaluated and the holder
shall be entitled to a fair compensation thereof, the amount of
which shall be mutually agreed upon by both the LGU and the
agreement holder, and in case of disagreement between them, by
arbitration through a mutually acceptable and impartial third party
adjudicator; 5

b. The agreement holder has the right to transfer, contract, sell, or
convey his rights to any qualified person following the guidelines
to be issued by the Secretary, Provided, that if such restoration or
reforestation were conducted within ancestral domains/ancestral
lands, the transferee shall secure the free, prior and informed
consent of the indigenous communities of such ancestral
domains/ancestral lands prior to such transfer; and,



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c. In the event that the area restored has provided ecological services
to the community, user fees shall be allowed as incentives.

The Secretary may provide or recommend to the President or to Congress
other incentives in addition to those granted herein and in existing laws in order to
promote reforestation and the establishment of tree plantations, Provided, That in no
case shall the Secretary provide incentives that shall put the Slate at a gross
disadvantage, nor shall the Secretary provide incentives of non-payment of taxes or
other rightful fees due to the State as provided by other laws

Section 47, Reforestation in Ancestral Domains/Ancestrat Lands, Reforestation
in ancestral domains/ ancestral lands, if not undertaken by the ICCs/IPs themselves,
shall require the {re¢, prior and informed consent of the ICCs/ IPs.

Section 48. Reforestation in Protection Forestlinds, ‘The Department may
contract out the reforestation and/or management of protection forestlands to any
person, Provided, that such persons should meet the qualifications enumerated in
Section 54, The Department shall reasonably compensate such persons for such
reforestation and/or management activities and extend the necessary assistance in
the reforestation and/or management of such protection forestlands.

Section 49. Voluntary Offer to Reforest. Private landowners, whether natural
or juridical persons, may participate in reforestation and plantation development or
similar programs of the LGU or the Department, with the landowner contributing
his land and the LGU or Department furnishing funds to reforest the area on a co-
production agreement: Provided, That the property shall be exclusively devoted to
the planting of forest species for at least one (1) rotation, which undertaking shall be
annotated at the back of the title of the property: Provided, further, That prime
agricultural lands as determined or certified by the DA shall not be the subject of a
voluntary offer to reforest.

CHAPTER VI
COMMUNITY-BASED FOREST MANAGEMENT STRATEGY

Section 50, Coniniunity-B: Forest’ Management Strategy (CBFMS).
Whenever they are present, forest resident families, communities, indigenous
peoples and other communities whose fives, culture and general well-being are
intimately linked with the forests, shall be entrusted with the responsibility to
protect, manage, develop and utilize resources limited to woodlots and non-timber
forest products (NTFP) under the principle of stewardship. Timber harvesting, shall
only be allowed in production forestlands designated in the Community Resource
Management Plans (CRMP). The Department together with the LGUs, and in
consultation with affected stakeholders and sectors, shall develop policies, criteria,
guidelines and tenurial instruments that will simplify and allow access of forest
resident families, and local communities to forestland resources. The LGUs will
review all CBFMAs in their jurisdiction to assess performance and determine



membership status of the CBFMA-holder. The Department together with the LGUs,
in consultation with affected stakeholders and sectors, shall furthermore develop
policies, and guidelines that promote partnership between the private sector and
forest-based communities in pursuit of sustainable community forest management
activities,

Section 51. Areas Available for CBFMS. Subject to prior or vested rights, the
CBFMS may be implemented on all appropriate forestlands excluding, the ancestral
domains/ancestral lands of ICCs/IPs. Priority will be given to degraded and
denuded forestlands.

The LGU may only allow the implementation of CBFMS in watershed
reservations if it shall promote their protection and rehabilitation; Provided, however
that land-use practices and activities therein are in accordance with a management
plan duly approved by the Secretary and shall not induce severe soil erosion and
surface run-off: Provided, further, That no timber harvesting shall be allowed in
forests; Provided also, That no CBFM agreements shall be issued to non-ICCs/IPs
within ancestral domains/ancestral lands, Provided finally, CBFMAs shall not cover
Certificate of Land Ownership Awards (CLOAs) and other tenurial instruments.

Section 52, Community Resource Management in CBEM Aras. The
management of forestland resources in CBFM areas shall be embodied in a
community resource management plan, which shall contain the community's vision,
aspirations, and strategies in the management of forestland resources, which shall be
consistent with the forestland use plan (FLUP). Qualified communities shall be
provided with appropriate long-term security of tenure, technical, managerial and
financial assistance, training; and other assistance, as the case may be, to empower
them to manage and benefit from the forestland resources on a sustainable basis.

Section 53. Qualified Participants. Organized forest communities shall be
iven priority to participate in the CBFM program. Organizations eligible to
given priority to particip: progi 8 8

participate in CBFM shall have the following qualifications:
a. Members shall be Filipino citizens; and
b. - Members shalll be any of the following:
i Traditionally utilizing the resource for their livelihood;
ii Actually residing within the area for at least five (5)

years; and

iti Residing adjacent and actually tilling portions of the area
to be awarded.


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Section 54. Moves of Management Agreements. ‘The conservation, protection,
development, utilization, and management of forestlands and/or forest resources
shall be undertaken under the supervision of the State through the LGUs. The State
may directly undertake such activities or it may enter into co-production, joint
venture or production sharing agreement with qualified Filipino citizens or
corporations or associations over the management of production forestlands, subject
to relevant laws, rules and regulations, Provided, That interested local communities
through their organized and duly recognized associations shall be given priority in
the grant of appropriate instruments implementing the said agreements. Such
instruments and/or agreements shall have a duration of twenty-five (25) years,
renewable for another twenty-five (25) years, under such terms and conditions as
may be provided by the Secretary, after observing the qualification of the succeeding,
sections; Provided further, That management agreements shall not be issued in favor
of any person covering ancestral domains/ancestral lands without the free, prior
and informed consent of the concerned ICCs/IPs and the recognition and protection
of ICCs/IPs rights under pertinent laws;

Current valid and subsisting licenses, contracts, or agreements granted by the
government for the development, management, and utilization of forest resources
within protection forestlands shall be allowed to continue under the same terms and
conditions until their expiry; Provided, That no cutting or felling of trees shall be
allowed within the said protection forestlands, Provided further, That such
agreements issued within ancestral domains should have had the free, prior, and
informed consent of the ICCs/IPs involved, otherwise, such license, contracts or
agreements shall be cancelled and revoked for violating the rights of said ICCs/1Ps.

All agreements entered into pursuant to this section shall be subject to the
approval of and monitoring by the LGU, Provided further, That all applications and
approved agreements shall be posted in public places,

Section 55. Terms und Conditions of Agreements. The Department, in
coordination with the LGUs, and, having undergone multi-stakeholder consultations
shall formulate rules and regulations covering the relevant terms and conditions
thereof,

Section 56. Minimum Conditions for the Issuance of Co-Production, Joint
Venture and Production Sharing Agreement. The following, provisions shall be the
minimum conditions for the issuance of cosproduction, joint venture and production
sharing agreemen

a. ‘The holder isa Filipino citizen;

The agreement holder shall furnish the necessary management,
technology and financial services when required, as determined by
the Secretary;


© Provision/s for government share of revenues and the manner of
payment thereof;

d.— Provision/s on consultation and arbitration with respect to. the
interpretation of the agreement;

.  Provision/s for anti-pollution and environmental protection
measures;
f.  Provision/s prescribing the preferential use of indigenous tree

species for tree plantations; Provided, that in case of protections
forestlands, only indigenous tree species shall be used;

g _ Provision/s for an effective monitoring scheme to be implemented
by the LGU, which shall include, but shall not be limited to periodic
inspection of all records and books of account of the agreement
holders;

bh. Commitment to community development including capacity
building of local stakeholders;

i The submission of a management and development plan to be
approved by the LGU; and

j. Other provisions that the LGU. shall impose, upon the
recommendation of the Director of the FMB, that will improve and
sustain the development and management of the forestlands and its
resources, which shall include, among others, a projection of annual
income and revenues generated, to be used as basis in the
determination of government shares.

Section 57. Trausfer. No holder of a co-production, joint venture, or
production sharing agreement or contract shall sub-contract, transfer, exchange, sell
or convey the same or any of his right or interests therein without a written authority
from the LGU, Moreover, no transfer shall be authorized unless the agreement or
contract has been in existence and active for at least three consecutive years from
issuance thereof: Provided, That the transferor has faithfully complied with the terms
and conditions of the said agreement ‘or contract; the transferee has all the
qualifications and none of the disqualifications to hold the same; and the transferee
shall assume the obligations of the transferor. Failure to comply with these
conditions shall be sufficient cause for the cancellation of the agreement or contract;
Provided further, That if such agreement cover ancestral domains/ancestral lands, the
free, prior and informed consent of the ICCs/IPs involved with regard to such
transfer shall be secured, otherwise, said agreement shall be cancelled.



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Section 58. Non-Timber Forest Products. Rattan, bamboos, vines, herbs,
exudates and other non-timber forest products are integral parts of the forest
ecosystem. The planting and sustainable management of non-timber producing
species shall be encouraged and supported, Provided, That they are indigenous
species, The development, management and utilization of non-timber forest
products shall be allowed in accordance with the FLUP, and corresponding laws and
regulations enforced by the LGU and consistent with guidelines to be promulgated
by the Department in compliance with national and international policy or
agreements.

Section 59, Priority to Harvest, Utilize, Gather or Collect NTEP. In granting
permits to harvest, utilize, gather or collect non-timber forest products, in their
natural or original state from forestlands, priority shall be given to forest resident
families, local communities, and indigenous peoples living nearest the subject
forestlands; Provided, That the wildlings collected from the forests shall be utilized
for nursery establishments, research and development and shall be subject to
guidelines formulated in the establishment of nurseries

Section 60. Silviciltural and Harvesting System. The Department shall
formulate the appropriate silvicultural and harvesting system and all measures shall
be taken to achieve an approximate balance between growth and harvest that is
consistent with the NBSAP. The use of forest products from production forestlands
shall be promoted and practiced.

Section 61. Mangrove forest. Cutting in mangrove forests shall be
prohibited, The Department shall formulate a program for the restoration of
mangrove forests and. shall promote strategies that are consistent with biodiversity
conservation or enhance biodiversity.

Section 62. Grazing. Land for grazing purposes shall only be limited to
production forestlands. The Department shall identify and delimit areas suitable for
grazing purposes: Provided, That no forestland fifty percent (50%) in slope or over
may be utilized for grazing purposes: Provided also, That vegetation should be
sufficient for livestock prior to the grant of such permits, Provided, further, That
existing, pasture lease agreements or forestland grazing lease agreements shall be
allowed to continue under the same terms and conditions until their expiry: Provided
also, That burning of grass for the purpose of grazing shall be prohibited; Provitled,
finally, That abandoned or idle, expired, of cancelled grazing or pasture lands shall
be subject to land use capability assessment and or land use suitability assessment to
determine their best use or combination of uses, No new grazing or pasture permit,
lease, or contract shall be issued, nor existing ones allowed to continue unless
covered by existing rules and regulations governing the Philippine EIS System and
subject to provisions in this Act.


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Existing pasture lease agreements or forestland grazing lease agreements
shall be subject to review and monitoring by the LGU, Recommendations resulting
from the review shall be given primary basis for actions.

Applications for new pasture lease agreements or forestland grazing lease
agreements shall be reviewed and approved by the LGU and be covered by existing
rules and regulations governing the Philippine EIS System and subject (0 provisions
of this Act,

Section 63, Mining aut Power Generation Operations in Forestlands. Forest
resources inside mineral reservations and permitted areas and their management
vind utilization are subject to the provisions of this Act. Power generation and small-
scale mining operations in forestlands, except in protection forestlands may be
stlowed only alter the issuance of an ECC and in compliance with other relevant
laws. Mining and power generation shall not be allowed in protection and
eatoration areas, Provided, ‘That micro-hydro or other renewable energy device may
be allowed subject to the provisions of this Act

Section 64. Roads and Other Infrastructures. Roads and other infrastructure,
including the development of mineral reservations and energy resources inside
forestlands, shall be constructed with the least impairment to the resource values
‘and with the least impact and disturbance to biodiversity of the area found in such
forestlands. Government agencies and their contractors undertaking, the construction
of roads, bridges, communication and other infrastructure facilities and installations
inside forestlands shall seek prior authority from the Department and shall comply
‘with existing rules and regulations governing the Philippine EIS System, Provided,
‘That no roads or other infrastructure shall be constructed in protection forestlands.

‘CHAPTER VIII
WOOD-BASED INDUSTRIES

Section 65. Establishment and Operations of Timber-Based Industries. ‘The State,
through the Department, may promote the establishment, operation, and
development of timber-based industries only in production forestlands.

Section 66. Incentives for Timber-Based Industries, All agreements pertaining
to timber-based industries shall also be subject to review by the Department under
procedures to be formulated by the Department with mandatory consultation with
eekeholders. The following incentives are hereby granted in addition to those
already provided by law:

a. All processing plants or mills shall be assured of their supply of
raw materials, preferably but not exclusively from local sources;

b. All processing, plants or mills shall be granted operating permits for


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five (6) years renewable for another five (5) years: Provided, That
permits for processing plants owned or operated by holders of
timber plantation agreements or contracts shall be co-terminus with
said agreements or contracts.

Warranties to and agreements with existing integrated forest-based plants to
ensure the availability of raw materials shall be subject to the process for as long as
such integrated plants are operating. Agreements or licenses over production
forestlands granted to timber-based plants shall not be automatically converted into
any mode authorized in this Act. Holders of expired agreements may apply for a
new permit, license or agreement subject to the provisions of this Act. Permit holders
are allowed a period of twenty-five (25) years, renewable for another twenty-five
(25) years, for a maximum of fifty (50) years. Expansion in capacity of timber-based
plants shall be encouraged and the same shall be given priority access to production
forestlands and other areas available for development as source of raw materials.

Section 67. Export and Sale of Locally Produced Wood Products. No natural
grown trees shalll be cut, gathered, harvested or removed from forests. Logs, lumber
and other finished products from tree plantations shall be exported only under such
guidelines as the Secretary may promulgate and certified as coming from the
production forestlands by LGUs. A certification process shall be formulated by the
Department in consultation with key stakeholders.

Section 68. Compliance of Grading Rules, No person shall sell or offer for sale
any log, lumber, veneer, plywood or other manufactured wood products in the
international or domestic market without complying with the grading rules
established by the government. Failure to adhere to the established grading rules
and standards, or any act of falsification on the volume of logs, lumber, veneer,
plywood or other wood products sold in the international or domestic market shall
be suificient cause for the cancellation of export license, wood processing permit, or
other license or permit authorizing the manufacture or sale of such products,

Section 69, Importation and Sale of Logs and Other Forest and Wooil Products.
Logs, lumber, and other forest- and wood-based products may be imported to the
country subject to the authorization of the Secretary and to the tariff and duties
under Presidential Decree No. 1464 as well as quarantine regulations, Any product
manufactured or re-manufactured out of imported forest and wood materials shall
be allowed to be sold in the domestic or international market: Provided, That the
grading rules and standards therefore are complied with, otherwise the sanctions in
Section 69 hereof shall be imposed.

CHAPTER IX
CHARGES, FEES AND GOVERNMENT SHARE

Section 70, Fees and Government Shares for the Utilization, Exploitation,
Ocveupation, Possession of and Activities within Forestlands. The Department shall


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prescribe appropriate government shares, including and rentals for the different
kinds of utilization, exploitation, occupation, possession, or activities within
forestlands: Provided, That payment of or collection of such fees and rentals shall be
waived for parties/industries mandated by law to manage, conserve, develop and
protect forestlands and forest resources found therein, except administrative fees for
the filing and processing of applications for the issuance and renewal of licenses,
permits, and agreements; Provided, further, That watershed administrators and/or
service contractors that have forest management agreements with the Department as
provided for under Section 84 of this Act shall also be entitled to the waiver of fees,
except administrative fees

The State shall collect government shares from income, rentals or other fees,
as owner of the resource and for its regulatory function. The guidelines to be
formulated should ensure equitable sharing between the national government and
LGUs.

In order for the Department to prescribe appropriate and equitable fees for
the use of water and other forest resources by parties/industries concerned for
power generation, domestic and industrial irrigation, carbon sequestration and
biodiversity benefits respectively, by parties/industries concerned taking into
consideration natural resource valuation in the assignment of fees and ensuring
equitable sharing of benefits between concerned national government agency and
LGU, the Department shall initiate the creation of an inter-agency task force for this
purpose.

Section 71, Timber Charges. There shall be collected charges on each cubic
meter of timber cut in forestlands, using direct and indirect values, whether
belonging to the first, second, third or fourth group, twenty-five percent (25%) of the
actual freight of board (FOB) market price based on species and grading: Provided,
however, That, in the case of pulpwood and matchwood cut in production forestland,
forest charges on each cubic meter shall be ten percent (10%) of the actual FOB
market price

Section 72, Charges on Firewood, Branches and Other Recoverable Wood Wastes
of Timber. There shall be collected timber charges of one percent (1%) of the market
price on each cubic meter of firewood cut in production forestlands, branches and
other recoverable wood wastes of timber, such as timber ends, tops and stumps,
when used as raw maferials for the manufacture of finished products, Provided, That
the cutting of all mangrove species shall be prohibited, Provided further, That only
third of fourth group wood may be taken for firewood, Provided finally, That, it
jointly authorized by the Secretaries of both the Department and the DA, first and
second group woods may be removed from land which is more valuable for
ulture than for forest purposes, subject to the charges in the preceding section

ay

Section 73. Charges on Non-Timber Forest Products, All other forest products
of forestlands which are not covered by the preceding section shall be exempted


from any or all forest charges, except rattans, gums resins, beeswax, guttapercha,
almaciga, resin, bamboo, vines, herbs, exudates and other species with commercial
value, which shall be charged at ten percent (10%) of the actual FOB market price,

Section 74, Determination of Market Price of Timber and Non-timber Products.
‘The actual FOB market price of timber products shall be justly determined once a
year by the Secretary: Provided, that the Secretary shall cause the creation of a
committee to be composed of representatives of the Department, the National
Economic and Development Authority, the Department of Trade and Industry, the
Bureau of Internal Revenue and the wood and furniture industry and consumers,
LGUs, academe, NGOs and other concerned sectoral representatives which shall
formulate the criteria and/or guidelines in the determination of the actual FOB
market price taking into consideration direct and indirect values to be used as the
basis for the assessment of the ad valorem tax, taking into consideration production
cost (developing cost, contingencies, and miscellaneous cost), species and grade of
timber, government share, reforestation, tariff duties, taxes, risk involved, and a
reasonable margin of profit for domestic and export market prices for timber and
timber products.

‘Timber charges shall also be applied to naturally growing timber and timber
products gathered from alienable and disposable lands and private lands. Timber
charges collected shall be in lieu of the administrative charge on environment and
other fees and charges imposed thereon: Provided, That planted trees and other
timber products harvested from industrial timber plantations and private lands
covered by existing tiller or by approved land application are exempted from
payment of timber charges.

The duties incident to the measuring of timber products and the invoicing
and collection of the charges thereon shall be discharged by the LGU who shall
likewise provide for the time, manner, and place of payment of such charges under
regulations of the Department.

Section 75. Fees for Administrative Services Rendered by the Department.
Reasonable fees shall be collected for various services rendered by personnel of the
Department in connection with their duties and responsibilities as may be requested
by interested parties, including but not limited, to surveying, mapping and other
similar service activities: Provided, That administrative fees shall be waived for
services rendered to local communities or. indigenous peoples in the preparation of
their management plans, Provided further, That a percentage of the fees collected shall
support the furtherance of formal forestry education.

Section 76. Forest Conservation and Development Fund (FCDF). A Forest
Conservation and Development Fund (FCDF) to be administered by the LGU is
hereby established t provide sustainable funds for forest protection, restoration and
management, including the operations of the municipal forest management boards,
rehabilitation and preservation of watershed areas, CBFM program, information and


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educational campaign as well as scholarship programs, policy research and
development. At least seventy percent (70%) of the forest charges and government
share in all products removed from the forestlands, rentals, proceeds from sales of
confiscated forest products including conveyances, fines and penalties, and
administrative fees collected shall be set aside for the buildup of the FCDF, The fund
may be augmented by grants, donations, endowment from various sources,
domestic or foreign for purposes related to their functions: Provided, That fees
collected by the LGU consistent with the management plans formulated shall
directly accrue to the Said LGU's account: Provided, further, that a portion of the fees
collected shall also go to the host communities, which protect and maintain these
watersheds, from which the headwaters emanate,

Disbursements from the fund shall be subject to the usual accounting and
budgeting rules and regulations: Provided, That no amount shall be disbursed to
cover the operating expenses of the Department and other concerned agencies, The
forest management board will recommend to the Municipal Council the thrusts for
fund allocation.

Section 77, Fees from Payment for Environmental Services (PES). The ERDB
shall formulate a certain value to environmental services, taking into account the
positive and negative spillovers of the use of such resources or externalities, and
establish appropriate pricing, institutional and redistribution systems that will lead
to sustainable and socially optimal land use practices. PES is a form of payment for
ecosystem services as a method of internalizing the positive and negative
externalities associated with a given ecosystem or a specific resource use.

CHAPTER X
TREE PARKS

Section 78. Establishment of Tree Parks in Subdivision and Tree Planting on
Roadsides. Every subdivision project to be developed after the passage of this Act
shall include the establishment of a tree park of not less than fifty percent (50%) of
the required total open spaces as provided in Section 2 of Presidential Decree No.
953, requiring the planting of trees in certain places. Guidelines for the establishment
of tree parks within a subdivision shall be prepared jointly by the subdivision owner
concerned, the Housing and Land Use Regulatory Board (HLURB) and the
Department. The subdivision owner shall provide the funds for this purpose. These
guidelines and allocation of funds shall be a condition precedent in the approval of
the subdivision plan,

For every major public road or irrigation construction project, the Department
of Public Works and Highways (DPWH) shall include the planting and maintenance
of appropriate trees along the road /highway or irrigation canals as landscaped areas
every twenty-five (25) kilometers thereof, whenever appropriate, and shall provide
adequate funds for this purpose. Each city and municipality shall also allocate
adequate funds for the planting, care and maintenance of trees or perennial shrubs


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in “greenbelts’ or ‘green spaces’ such as road/street sides, center islands, among
others,

CHAPTER X1
PROTECTION

Section 79, Assistance of Law Enforcement Agencies. The LGUs and the
Department may call upon law enforcement agencies and instrumentalities of the
Government such as the Philippine National Police (PNP), the Armed Forces of the
Philippines (AFP), and the National Bureau of Investigation (NBI) for the
enforcement of the forest-related laws, rules and regulations.

Section 80. Role of Local Residents, It shall be incumbent upon LGUs
concerned to render assistance in protecting and conserving forestlands within their
respective territorial jurisdiction. Qualified local residents may be deputized by the
LGUs to assist in the drive against illegal logging, kaingiu-making and forestland
occupation. These deputized residents shall likewise be authorized to arrest forest
violators within their communities subject to existing laws and regulations on arrest
and detention. The LGUs shall provide assistance to these deputized residents in
cases instances of citizens’ arrests

Section 81. Prevention of Forest Fires, The concerned LGUs, in cooperation
with the Bureau of Fire Protection (BFP) and the Department, shall formulate and
implement a fire prevention and control program.

Section 82. Control of Forest Pests and Diseases. The Department shall
likewise formulate and implement a national integrated forest pest and disease
management program including quarantine procedures for imported forest seeds
and forest products to prevent, minimize or control forest pests and diseases in the
reforestation strategies.

Section 83. Prohibition on Genetically Engineered and Transgenic Trees.
Planting/ introduction and/or use of genetically engineered (GE) and transgenic
trees are prohibited in all forestlands,

Section 84. Information and Rewards System. The LGU shall establish an
information and rewards system as part pf the community's participation in the
protection of forest resources. ‘The rewards shall be payable immediately upon the
establishment of prima facie proof of violation. When an information given leads to
the seizure of logs or timber and other forest product and results ina conviction, the
informer shall also be entitled to twenty percent (20%) of the gross value of the
recovered or seized forest resource. The implementation of the rewards system shall
be in collaboration with the Department, the Forest Management Board and the
Philippine National Police.



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CHAPTER XII
RESEARCH, EDUCATION, TRAINING AND EXTENSION

Section 85. Research and Technology Development Transfer. Research and
technology development transfer shall be strengthened to support sustainable
management of forest resources. The Department, the Department of Science and
Technology (DOST), the Commission on Higher Education (CHED), and the State
Universities and colleges shall, within one (1) year from the passage of this Act,
prepare a comprehensive sustainable national forestry and environmental research
and technology development and transfer program in furtherance of sustainable
forest management which shall be implemented, monitored, and reviewed in
accordance with existing research management systems. Adequate and sustainable
funds to implement research and technology development plans and transfer
program shall be provided by each of the aforementioned agencies and institutions
under the General Appropriations Act

Appropriate funds shall be allotted for research and development.

Section 86. Public Information, Education and Advocacy Campaign. With the
support from LGUs, NGOs, media and other organizations, the Department, the
Philippine Information Agency (PIA), the Department of Education (DepEd), CHED,
State-owned and private universities and colleges shall formulate and implement a
nationwide program for sustained public information and advocacy campaign for
forest and natural resources conservation and sustainable forest development and
management. The DepEd shall include subjects on environment, forest and natural
resources in the curricula for elementary and high school education, The CHED shall
likewise include mandatory ecology and environment courses in the general
education curricula, Congress shall allocate funds to the Department for the purpose
of coordinating a systematic campaign to promote community ecological awareness,
including the preparation of informational and educational materials therefore. A
percentage of appropriations specified in Section 122 shall be set aside for this
purpose.

Section 87, Formal Forestry, Agroforestry and ewvironmental Education. ‘The
CHED, in collaboration with the Department, the Board of Examiners for Foresters
of the Professional Regulations Commission (PRO), Philippines Forestry Education
Network, Philippine Agroforestry /education and Research Network,
Environmental Education Network of the Philippines and the duly accredited
national professional foresters organization shall actively pursue the rationalization
of formal forestry education by assigning higher weights on non-timber extraction
subjects. The licensure exam shall require minimum units on forest restoration
related subject and the establishment of centers of excellence in forestry and
environmental education to ensure high quality manpower output to meet the needs
of the forestry sector and the country as a whole, The following areas shall be
strengthened:


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a. Sustainable forest management;

b. Natural resource management;

c. Biodiversity conservation;

d. Wildlife conservation;

e. Wildlife management;

f, Entrepreneurship on non-timber forest resources)
g Environmental laws;

h. Forest restoration technology;

i Environmental science; and

j. Community development.

Section 88. Continuing Education on Forestry. A non-formal program of
continuing education shall be established to maintain the growth of the forestry
profession. The PRC Board of Examiners for Foresters and the Civil Service
Commission (CSC) shall provide the guidelines for a program in continuing
education in forestry. In cooperation with academic institutions, the Department
shall develop the infrastructures to institutionalize non-formal continuing education
for the forestry sector.

Section 89. Training Centers. In coordination with TESDA, DepEd, CHED
and State Universities and Colleges (SUCs) and other relevant institutions,
stakeholders and local communities, the Department shall establish and
institutionalize a network of training centers in strategic parts of the country to
provide regular and up-to-date training on the various aspects of sustainable forest
management and restoration to forest guards, LGUs, NGOs, local communities,
and indigenous peoples. Furthermore, the Department shall ensure that personnel
appointed to critical and sensitive positions undergo training to prepare them to
discharge their duties and responsibilities professionally, efficiently and effectively.

Section 90. Policy Research and Development Network. ‘The Department,
through the Ecosystem Research and Development Bureau (ERDB), and in
collaboration with the SUCs and private university and institutions, shall form part
of a network to serve as the primary policy research and development center for
forestry and natural resources management. The Network shall perform its functions
in close coordination with the Department and other policy research institutions in
the country, It shall assist the Department in the formulation, review, and evaluation
of proposed and existing policies on forestry and natural resources management.


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CHAPTER XII1
OFFENSES AND PENALTIES

Section 91, —Non-Establishment of Tree Parks/Comnmunal Forests. Any city,
municipality or subdivision owner who fails to establish tree parks as provided in
Sections 76 herein shall be punished by a fine of not less than One Hundred
Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos
(P500,000.00). The subdivision plan will not be given approval until guidelines have
been formulated and funds have been allocated for the purpose.

Section 92, Harvesting, Gathering and/or Collecting Timber or Other Forest
Products without Authority. Any person who shall harvest, cut, gather, collect, or
remove timber or other forest products from any forestland, or timber from all
forestlands, whether protection or production forestlands, or inside alienable and
disposable public land and private lands except as provided, or forest resources in
alienable and disposable lands without authority from the Secretary or found to
possess the same without pertinent required legal documents shall be punished by
imprisonment ranging from prision mayor minimum period to reclusion temporal
minimum period and/or a fine equivalent to ten (10) times the value of the said
forest product but not less than Fifty Thousand Pesos (50,000,00): Provided, That in
the case of partnerships, associations or corporations, the president, managing
partner, and general manager shall be held liable, and if such officer is an alien, he
shall, in addition to the penalty, be deported without further proceedings on the part
of the Bureau of Inimigration and Deportation. Offenders who are public officials
shall be deemed automatically dismissed from office and permanently disqualified
from holding any elective or appointive position.

All timber or any forest products cut, gathered, collected, removed, or
possessed and all the conveyances, machinery, equipment, implements, work
animals, and tools used in connection with this violation shall be seized and
confiscated in favor of the State.

Section 93. Illegal Cutting as an Act of Economic Sabotage. Any of the acts
enumerated in the preceding section committed by an armed group or by any group
through organized and systematic manner, for commercial purposes, shall be
considered an act of economic sabotage punishable by reclusion perpetua.

The commission of any of the prohibited acts by two or more individuals with
or without the aid of any mechanical device shall constitute a prima facie evidence
that the act is organized and systematic.

Any permittee/agreement holder who shall buy logs from unlicensed loggers
or loggers operating without permits shall be considered in violation of this Act and,
upon conviction, shall also be punished with reclusion perpetua


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Section 94. Use of Illegally Cut Timber in Government Infrastructure Projects,
Contractors of government infrastructure projects shall obtain certification from the
Department that the logs or lumber to be used therein were obtained from legitimate
sources. The use of illegally cut naturally grown timber from protection forests or
illegally cut timber from production forests in government infrastructure projects
shall be sufficient cause for the imposition of penalties provided in Section 88, on
harvesting of forest products without authority, and Section 89, on illegal cutting as
an economic sabotage, including the withholding of the payment to the contractor.

Section 95. Grazing Livestock on Forestlands without a Permit, Any person
found to have caused the grazing of livestock in forestlands and grazing lands
without an authority under a lease or permit to graze, upon conviction, shall be
penalized with imprisonment of not less than two (2) years nor more than four (4)
years and a fine equivalent to ten times the regular rentals due in addition to
confiscation of the livestock and all improvements introduced in the area in favor of
the government, and shall restore the affected area into the original state of the
natural resource; Provided, That in case the offender is a corporation, partnership, or
association, the officer or director thereof who directly caused or ordered such shall
be liable. In case the offender is a public officer or employee, he shall, in addition to
the above penalties, be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position in the
government service.

Section 96. Unluwfiul Occupation or Destruction of Forestlands. Any person
who, without authority from the Secretary, enters and occupies or possesses, or
engages in kaingin-making for his own private use or for others, any forestland or
grazing land, or in any manner destroys such forestland or part thereof, or causes
any damage to the fimber stands and other forest product found therein, or assists,
aids or abets another person to do so, or sets a fire, or negligently permits a fire to be
set therein, or refuses lawful orders to vacate the area when ordered to do so shall,
upon conviction, be punished with penalties in the amount of not less than One
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand
Pesos (500,000.00) and imprisonment of not less than six (6) years nor more than
twelve (12) years for each offense: Provided, That in the case of an offender found
guilty of kaingin-making, the penalty shall be imprisonment of not less than ten (10)
years nor more than twelve (12) years and a fine equivalent to eight times the regular
forest charges due on the forest products destroyed without prejudice to payment of
the full cost of rehabilitation of the occupied.areas as determined by the Department:
Provided, further, That the maximum of the penalty prescribed herein shall be
imposed upon the offender who repeats the same offense, and double the maximum
penalty upon the offender who commits the same offense for the third time or mor.
In all cases, the court shall further order the eviction of the offender from the area
occupied and the forfeiture to the government of all improvements made therein,
including all vehicles, domestic animals and equipment of any kind used in the
commission of the offense. If not suitable for use by the Department, said
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auction, the proceeds from which shall accrue to the FCDF. If the offender is an
alien, he shall be deported after serving his sentence and payment of fines, without
any further proceedings, An offender who is a government officer or employee,
shall, in addition to the above penalties, be deemed automatically dismissed from
office and permanently disqualified from holding any elective or appointive position
in the government service

Section 97. Illegal Conversion of City or Municipal Parks, Communal Forests, and
Tree Parks in Subdivisions. Any person found to have converted or caused. the
conversion of a city or municipal park or communal forest, or tree parks within
subdivisions established pursuant to Sec. 75 herein and Section 2 of Presidential
Decree No. 953, requiring the planting of trees in certain places, into other uses
including the construction of permanent buildings therein, or in any manner
destroys or causes any damage to the timber stands and other forest product found
therein, or assists, aids or abets another person to do $0, or sets a fire, or negligently
Permits a fire to be set therein, upon conviction, shall be penalized by imprisonment
of six (6) years and one (1) day to twelve (12) years or a fine of not less than One
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand
Pesos (P500,000.00), or both fine and imprisonment at the discretion of the Court
The offender shall likewise be imposed a fine equivalent to eight times the
commercial value of the forest products destroyed without prejudice to payment of
the full cost of rehabilitation of the areas as determined by the Department: Provided,
further, That the maximum of the penalty prescribed herein shall be imposed upon
the offender who repeats the same offense, and double the maximum penalty upon
the offender who commits the same offense for the third time or more. The court
shall further order the forfeiture to the government of all improvements made
therein, including all vehicles, domestic animals, and equipment of any kind used in
the commission of the offense. If not suitable for use by the Department, said
improvements, vehicles, domestic animals and equipment shall be sold at public
auction, the proceeds from which shall accrue to the FCDF. An offender who is a
government officer oremployee, in addition to the above penalties, shall be deemed
automatically dismissed from office and permanently disqualified from holding any
elective or appointive position in the government service,

Section 98. Misdeclaration or Fulsification of Reports on Forest Resource
Inventory, Sealing, and Survey by a Government Official or Employee. Any public officer
or employee who knowingly misdeclares or falsifies reports pertaining to forest
resource inventory, scaling, survey, and other similar activities which are contrary to
the criteria and standards established in the rules and regulations promulgated by
the Secretary thereof, after an appropriate administrative proceeding, shall be
dismissed from the service with prejudice to re-employment. Upon conviction by a
court of competent jurisdiction, the same public officer or employee shall further
suffer an imprisonment of not less than eight (8) years nor more than twelve (12)
years and a fine of not less than One Hundred Thousand Pesos (P100,000,00) nor
more than Five Hundred Thousand Pesos (P500,000.00) and the termination of
license to practice forestry if the offender is a professional or registered forester:


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Provided, That the inventory, survey, scale, classification, and similar reports referred
herein shall be rendered null and void.

Section 99. Linilawfiul Operntion of Sawmills, Any person operating a sawmill
or mini-sawmill without authority from the Secretary shall be punished by a fine of
not less than Two Hundred Fifty Thousand Pesos (P250, 000.00) and confiscation of
the sawmill or mini-sawmill and complementary equipment in favor of the
government for appropriate disposition.

Section 100, Lulawfiul Operation of Wood Processing Plants and Downstrean
Industries. Any person operating a wood processing plant or downstream forest-
based industry without authority from the Secretary, shall be punished by, upon
conviction by a court of competent jurisdiction, imprisonment of not less than eight
(8) years nor more than twelve (12) years and a fine of not less than Five Hundred
Thousand Pesos (P500,000.00) and confiscation of the wood processing plant and
complementary equipment in favor of the government. The Department shall
promulgate the necessary guidelines, subject to the provisions of this Act that will
define the terms and conditions for the operation of a wood processing plant and/or
other downstream forest-based industries.

Section 101. Prohibition on the Issuance of Tax Declaration on Forestlamis. ~ Any
public officer or employee who issues a tax declaration for any purpose on any part
of forestlands, upon conviction, shall be penalized with imprisonment for a period of
not less than four (4) years nor more than eight (8) years and perpetual
disqualification from holding an elective or appointive office, The tax declaration
shall be considered null and void, Tax declarations within protection forestlands
shall be reviewed and be cancelled after due process.

Section 102, Linlawful Possession of Implements and Devices Used by Forest
Officers. Any person found possessing or using implements and devices used by
forest officers shall be penalized with imprisonment of not less than eight (8) years
not more than twelve (12) years and a fine of not less than One Hundred Thousand
Pesos (100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00) in
addition to the confiscation of such implements and devices and the automatic
cancellation of any licénse agreement, license, lease or permit.

Any forest officer who willingly allowed unauthorized person(s) to use these
implements and devices under his care shall be penalized with imprisonment of not
less six (6) years and one (1) day to no more than twelve (12) years and a fine of not
Jess than One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred
Thousand Pesos (P500,000.00).

In addition, the said forest officer shall be dismissed from the service with
prejudice to reinstatement and with perpetual disqualification from holding an
elective or appointive position.


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Section 103, Unauthorized Introduction of Logging Tools and Equipment Inside
Forestlands. It shall be unlawful for any person or entity to possess, bring, or
introduce any logging tools or equipment inside forestlands without prior authority,
from the Secretary or his duly authorized representative. Any person found guilty of
illegal possession of said logging tools or equipment shall be liable to imprisonment
of six (6) years and one (1) day to twelve (12) years or a fine of not less than One
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand
Pesos (P500,000,00) or both imprisonment and fine, and confiscation of said logging
tools and equipment in favor of the government.

Section 104, Non-Payment and Non-Remittance of Forest Charges. Any person
who fails to pay the amount due and payable as forest charges to the government
shall not be allowed to transport, convey, sell, nor use the timber or forest product
Moreover, failure to pay within thirty (30) days upon assessment of forest charges
shall be a ground foy confiscation of the said timber or forest product in favor of the
government. Any person who fails or refuses to remit to the proper authorities said
forest charges collectible pursuant to the provisions of this Act or the National
Internal Revenue Code, as amended, or who delays, obstructs or prevents the same,
or who orders, causes or effects the transfer or diversion of the funds for purposes
other than those specified in said Acts shall, upon conviction, be imprisoned for not
less than six (6) years nor more than ten (10) years and fined from One Hundred
Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos
(P500,000.00). If the offender is a corporation, partnership, or association, the officers
and directors thereof shalll be liable.

Section 105. Institution of Criminal Action by Forest Officers. Any forest officer
shall arrest any person who has committed or is about to commit, or is committing in
his presence any of the offenses defined in this chapter. The tools, animals,
equipment and conveyances used in committing the offense, and the forest products
cut, gathered, taken or possessed by the offender in the process of committing the
offense shall also be seized and confiscated in favor of the government. The arresting
forest officer shall thereafter deliver within thirty-six (36) hours from the time of
arrest or seizure both the offender and the confiscated forest products, conveyances,
tools and equipment, or the documents pertaining to the same, and file the proper
complaint with the appropriate official designated by law to conduct preliminary
investigation and file information in court. If the arrest and seizure are made in the
forest far from authorities designated by law to conduct preliminary investigations,
the delivery to and filing of the complaint with the latter shall be done within a
reasonable time sufficient for ordinary travel from the place of arrest to the place of
delivery. The seized forest products, materials, conveyances, tools and equipment
shall be immediately disposed of in accordance with the regulations promulgated by
the Secretary.

‘The Secretary may deputize any agency, barangay official, or any qualified
person to protect the forest and exercise the powers or authority provided for in the
preceding paragraph. Reports and complaints regarding the commission of any of



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the offenses defined in this chapter not committed in the presence of any forest
officer or any of the deputized officers shall immediately be reported to the forest
officer assigned in the area where the offense was allegedly committed. Thereupon,
the investigating officer shall receive the evidence supporting the report or
complaint and submit the same to the appropriate official authorized by law to
conduct a preliminary investigation of criminal cases and file the information in
court.

The Secretary of Justice shall designate in every city and province a special
prosecutor who shall file charges against forest violators to ensure their speedy
prosecution,

Section 106. Linbility of Custodian of Confiscnted Forest Products, Any public
officer who fails to produce the timber or forest products, including tools,
conveyances, equipment, and devices in his custody pursuant to a seizure or
confiscation made thereon, or who shall appropriate, take, misappropriate, or shall
permit another person to take such timber forest products wholly or partially, shall
suffer the penalty provided for in Article 217, on Malversation of Public Funds or
Property, of the Revised Penal Code. In addition, the said public officer shall be
dismissed from service with prejudice to reinstatement and with perpetual
disqualification from holding any elective or appointive office.

CHAPTER XIV
ADMINISTRATIVE PROVISIONS

Section 107. Strengthening of the Forest Management Sector. Only qualified
environmental management professionals and practitioners shall be appointed to the
positions of Director and Assistant Director of the FMB as well as to all other
positions where the services of professional foresters e.g. CENRO are required in
accordance with existing laws and the relevant rules and regulations issued by the
Civil Service Commission (CSC) and the Professional Regulations Commission
(PRC).

Section 108. Administrative Authority of the Secretary or his Duly Authorized
Representative to Order Confiscation. In all cases of violations of this Act or other forest
laws, rules, and regulations, the Secretary or his duly authorized representative may
order the confiscation of forest products illegally harvested, cut, gathered, removed
or possessed or abandoned, and all conveyances used either by land, water, or air as
well as all machinery, equipment, implements, and tools used in the commission of
the offense and to dispose of the same in accordance with pertinent laws,
regulations, or policies on the matter.

‘The Secretary may order that the sale of confiscated perishable forest
resources at public auction even before the termination of the judicial proceedings,


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following the applicable Rules on Evidence, with the proceeds of such sale kept in
trust to await the outcome of the judicial proceedings.

No court of the Philippines shall have jurisdiction to issue any Writ of
Replevin, restraining order, or preliminary mandatory injunction in any case
involving or growing out of any action by the Secretary or his duly authorized
representative in the exercise of the foregoing administrative authority.

Section 109, Cancellation of Permits, Licenses, Agreements, The Secretary motu
proprio or upon the filing of a petition, may cancel any permit, license or agreement.

Section 110, Administrative Authority of the Secretary to Impose Fines. In all
cases of violations of this Act and other forest laws, rules and regulations where fine
is the principal penalty, the Secretary is hereby authorized to impose
administratively the penalty consisting of the amount and the schedules of the fine
which shall be officially published in a national newspaper of general circulation.

Section 111. Authority of Forest Officers. When in the performance of their
official duties, forest officers or other government officials or employees duly
authorized by the Secretary or deputized as such shall have free entry into areas
covered by a contract, agreement, license, lease or permit. Forest officers are
authorized to inspect and to open closed vans suspected to contain illegally
harvested, collected or transported forest product; Provided, That it is done in the
presence of the shipper or consignee or two (2) responsible public officials in the
locality, Provided further, That in cases where entry shall be in ancestral
domains/ancestral lands, said persons shall secure the free, prior and informed
consent of the ICCs/IPs therein. Forest officers are authorized to administer oath,
take acknowledgment in official matters connected with the functions of their office,
or take testimony in official investigations conducted under the authority of this Act
and the implementing rules and regulations issued by the Secretary pursuant
thereof.

Section 112, “Visitorial Powers, The Secretary or his duly authorized
representative shall, from time to time, investigate, inspect, and examine records and
other documents except bank records related to the operation of any person granted
the privilege, contract, or agreement to utilize forest resources to determine
compliance with the terms and conditions stipulated in the grant, contract or
agreement, this Act, and pertinent laws, rules, and regulations,

Section 113. Transparency. Records, agreements, applications and all other
pertinent documents as well as conditions to the same shall be made available to the
public at all times. Records pertaining to the specific limits of forestlands shall also
be made available to the public. Moreover, the Department shall furnish all
provincial, municipal and city government units copies of the maps of permanent
forestlands located within their respective territorial jurisdictions.


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Section 114. Other Incentives. Twenty percent (20%) of the value of
confiscated materials shall be used as incentives to informants, forest management
council, forest management boards, including Department personnel. They shall also
be entitled to free legal assistance should legal cases be filed against them in the
performance of official duties.

Section 115, Suits and Strategic Legal Actions against Public Participation and the
Fuforcement of This Act. Where a suit is brought against a person who filed an action
as provided in Section 113 of this Act, or against any person, institution or
government agency that implements this Act, there being no grave abuse of
authority, 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. ‘This provision
shall also apply and benefit public officers who are sued for acts committed in their
official capacity, there being no grave abuse of authority, and done in the course of
enforcing this Act.

Section 116. Citizens’ Suits. For purposes of enforcing the provisions of this
Act or its implementing rules and regulations, any citizen may file an appropriate
civil, criminal or administrative action in the proper court against:

a. any person who violates or fails to comply with the provisions
of this Act or its implementing rules and regulations; or

the Department or other implementing agencies with respect to
orders, rules and regulations issued inconsistent with this Act; and

© any public officer who willfully or grossly neglects the
performance of an Act specifically enjoined as a duty by this Act or its
implementing rules and regulations, or abuses his authority in the
performance of his duty, or in any manner, improperly performs his duties
under this Act or its implementing rules and regulations; Provided, however,
That no suit can be filed until after a thirty-day notice has been given to the
public officer and the alleged violator concerned and no appropriate action
has been taken thereon.

The court shall exempt such action from the payment of filing fees, and shall,
likewise, upon prima facie showing of the non-enforcement or violation complained
of, exempt the plaintiff from the filing of an injunction bond for the issuance of a
preliminary injunction.

Section 117. Protection to Witnesses in Cases Involving Violation of Forestry
Laws, Witnesses to violations of this Act or other forestry laws and regulations,


including the immediate members of the family of said witnesses shall be given
protection, security and benefit, subject to the provisions of Republic Act No. 6981,
otherwise known as “The Witness Protection, Security and Benefit Act” and its
implementing rules and regulations.

Section 118. Riile-Making Authority, In consultation with the NCIP, the DILG,
the Department of Finance, the leagues of provinces, cities, ane municipalities, other
government agencies. mentioned herein and other relevant stakeholders (ic.
academic institutions, NGOS), the Department shall promulgate the implementing
rules and regulations within one (1) year from the effectivity of this Act.

Section 119. Congressional Oversight Committee. There is hereby created a
Congressional Oversight Committee composed of seven (7) members from the
Senate Committee on Environment and Natural Resources and seven (7) members
from the House of Representatives Committee on Natural Resources. The
Chairpersons of the corresponding committees shall also be the Co-chairpersons of
the Oversight Committee

‘The secretariat of the Oversight Committee shall be drawn from the existing
secretariat personnel of the committees comprising the oversight and the funding
shall be taken from the appropriations of both the House of Representatives and the
Senate.

CHAPTER XV
FINAL PROVISIONS

Section 120, Transitory Provisions. Upon the approval of this Act, the
Department shall evaluate the conditions of all forestlands covered by existing TLAs,
licenses, or permits and the like, which shall be allowed to continue until their
expiry; Provided, That cutting or felling of trees in forests shall be prohibited, Provided
further, that such TLA, license, permits and other instruments shall be terminated for
the following grounds:

a. When the licensee has been found to be a dummy of an otherwise
disqualified or unqualified person;

b. When the licensee has been found to be farming out the license or
receiving royalty of any kind;
c.  When.tife licensee has been found to be cutting or operating

outside the limits of the license or within an area specifically
designated or sub-classified by the Department as_ protection
forestland;

d. When the licensee has been found to be allowing. illegally-cut
timber to be invoiced under its license;


2176 e. When the licensee has been found to be inducing any other person

2177 to log in other areas in violation of the Department's regulations;
2178

2179 f, Failure to submit to the Department the required copies of auxiliary
2180 invoices covering timber manifested under the license;

2181 ‘

2182 g Failure to leave undamaged an adequate stand of young trees for
2183, residual growing stock or for seeding purposes and to employ the
2184 necessary number of laborers needed for timber management
2185 work;

2186

2187 h. When the licensee has, for the third time after written warning,
2188 intentionally cut, injured or destroyed trees marked by forest
2189 officers and unmarked poles and saplings for future growing stock,
2190 seeding, or protection;

2191

2192 i Failure to employ the required number of concession guards as
2193 determined by the Department;

2194

2195 j- Failure to protect the concession or license area or parts thereof
2196 from being converted into kuingin, or from illegal timber cutting,
2197 and other forms of trespass;

2198

2199 k. When the licensee has been found to have failed to put up the
2200 processing plant for the area within the required period, when
2201 made a condition in the award of the area and the grant of the
2202 license;

2203

204 1 Failure to pay pending forest accounts;

2205

206 m. — Failure to maintain and make conspicuous the approved and
207 established boundaries of his concession or license area;

2208

2209 n. Failure to suspend operations within a conflicted area when so
2210 required by the Department or its authorized representatives,
221 pending final decision of the conflict;

2212

213 0. Allowing a contractor to operate the license area or concession; and
2214 p: Violation of any of the terms and conditions of the license, the
2215 NIPAS Act and its implementing rules and regulations, the Wildlife
2216 Resources Conservation and Protection Act, or any of the
2217 provisions of law on internal revenue and labor, and Department
2218 regulations.

2219 :

2220 Any of the violations enumerated above will be cause for the immediate

2221 cancellation of the permit, timber license agreement or any other similar instrument.


Provided, That the Department shall immediately take control of the land and
consult with the concerned LGU and/or local communities for the proper
management of the area covered by the said cancelled permit, TLA or instrument.

The relevant agencies shall formulate the appropriate rules and regulations
for the implementation of this Act

Section 121, Appropriations. The amount necessary to initially implement the
provisions of this Agt shall be charged against the appropriations of the Department
of Environment and Natural Resources in the current General Appropriations Act.
Provided further that a share from the VAT on oil and natural gas, emission testing
tax, flood control tax, road users tax, and the Reforestation, Watershed Management,
Health and/or Environment Enhancement Fund, pursuant to Section 4 of Republic
Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001
(EPIRA), and its Implementing Rules and Regulations (IRR), shall be appropriated to
fund provisions in this Act. Thereafter, such sums as may be necessary to fully
implement the provisions of this Act shall be included in the annual General
Appropriations Act. For local government units, the funding requirements shall be
taken from their internal revenue allotment (IRA) and other sources of income
including the income derived from the shares from the different modes of
agreement.

Section 122, Separability Clause, Should any provision herein be declared
unconstitutional or invalid, the same shall not affect the validity or legality of the
other provisions.

Section 123. Repealing Clause. Subsections (b), (), (e), (O, (g), and (i) of
Section 4 of Act No. 3915; Republic Act Nos. 460 and 7161; Presidential Decree Nos.
705, 1153, 1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order
Nos. 277, series of 1987, and Executive Order No. 725, series of 1981, are hereby
repealed, and all laws, orders, rules and regulations, or any part thereof which are
inconsistent herewith are likewise hereby repealed or amended accordingly:
Provided, That this Act shall not in any manner amend the IPRA, NIPAS law and the
Wildlife Resources Act.

Section 124. Effectivity. This Act shall take effect thirty (30) days from the
date of its publication in the Official Gazette or in at least two (2) national
newspapers of general circulation. :