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

NINETEENTH CONGRESS
First Regular Session

rouse sito. 3435

Introduced by Representative Jaime R. Fresnedi

EXPLANATORY NOTE

This proposed measure seeks to establish the Department of Water Resources. It aims
to establish a body that shall ensure safe, adequate, affordable and sustainable water supply
and improved sanitation services for ail Filipinos and that this finite resource will be
sustained,

Every time the dry months come, which is anywhere from March to May and
sometimes even extends up to early June, the Philippines suffers from the serious effects of
Jack of water that results in the inconvenience of the general public and the devastation of
crops in farming regions. The mere fact that the country goes through this debacle every year
is a testament to our inaction regarding this problem.

Climate change hazards (rainfall variability, increasing temperatures, rising sea levels
and more extreme weather) which pose major risks to water resources and a growing
population will further aggravate this situation, There is no doubt that the country’s water
resources ure one of the most adversely affected by climate hazards. This highlights the
urgent need to properly plan for, and manage our finite water resources in order to meet the
increasing demands of many competing users. “ost

Unfortunately, the management of the country’s water resources remains fragmented
and uncoordinated with over 30 government units and agencies at national and local levels
implementing separate and disharmonized policies, plans and programs to develop and
operate water facilities and infrastructure for various uses, regulate water use and set tariffs,
and monitor water-related parameters. This continued overlapping and fragmented
management and regulation of water resources and services hinders the enactment and
implementation of a comprehensive, integrated and doable long-term solution to address
keener competition, imbalance resource utilization and conflict of interests among, water
users, especially in arcas already identified as water-stressed. It puts at risk the attainment of
the SDG target of universal access to safe water supply and improved sanitation by 2030.

There is an urgent need for an integrated and coordinated planning and
implementation of programs and projects that promote synchronized, sustainable and



science-based management of the country’s water resources that would address the imbalance
in water resource utilization, reduced water availability, declining water quality, recurrent
flooding, and other water-related issues in many parts of the country. This cannot be
achieved without addressing the fundamental governance and institutional issues of the
sector,

‘An apex body for the water sector is critically needed in order to have a single entity
that will be in charge of the overall planning, programming, policy formulation, and
management for the sector, It will serve as the sector’s champion and ensure that subsector
policies and plans are aligned with the overall Sector Master Plan, It will coordinate, monitor
and evaluate sector performance and take appropriate action as needed. It will conduct
extensive and regular hydrological studies/analyses which are very vital for water planning
and allocation purposes.

A similar version of this bill was previously filed by my predecessor during the last
Congress, This representation is refiling this proposed measure because of the belief that it is
an important piece of legislation that would benefit our country and the Filipino people.

In view of the foregoing, the immediate approval of this bill is earnestly

JAL EDI
‘Representative
Lone District, Muntinlupa City


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

EENTH CONGRESS

Introduced by Representative Jaime R. Fresnedi

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

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. ~ This Act shall be known as the “National Water Act,”

SEC. 2. Declaration of Policy. - Access to water is a basic human right, All water
belongs to the State which shall govern its development and utilization for the people.

It is hereby declared the policy of the State to ensure the provision of safe, adequate,
affordable, and sustainable water supply and improved sanitation services, while maintaining
the protection, preservation, and revival of the quality of the country’s water resources and
ecological balance.

In pursuit of this policy, this Act shall have the principal objective of ensuring and
accelerating universal access to water supply and sanitation services, in a regulatory regime
that encourages responsible private sector participation, and shall foster and prioritize the
establishment of infrastructure and public works that adopt innovative solutions and
intemational best practices to address the challenges of climate change. Further, all water and
water treatment infrastructure projects are hereby declared as projects imbucd with national
interest,


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SEC. 3. Definition of Terms. — As used in this Act:

Bulk water supplier refers to any entity, natural or juridical, whether public or private,
supplying or intending to supply large quantities of raw or treated water to buyers
who will use these for their own consumption, such as industrial companics, or for
retail distribution to consumers such as water service providers or real estate
developers managing their own distribution network,

Environmental services refer to qualitative functions of natural non-produced assets of
Jand, water, and air, including related ecosystems, and their biota, and which may be
categorized into three basic types: (a) disposal services which reflect the functions of
the natural environment as an absorptive sink for residuals; (b) productive services
which reflect the economic functions of providing natural resource inputs and space
for production and consumption, and (c) consumer or consumption services which
provide for physiological as well as recreational and related needs of human beings.

Flood Control refers to methods, acts, and protocols to be observed in order to
prevent and reduce the detrimental and catastrophic effects of flood waters which
include sediment-laden or turbid flows, and hyper-concentrated flows or debris flows.

Flood Risk Management (FRM) refers to such acts of defining and determining the
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of
incurring loss of both life and property due to flood waters. Flood risk management
consists of a cycle of prevention, mitigation, adaptation, preparedness and carly
warning, and response and recovery. The clements of FRM include: integrating
land-use planning and coastal zone management into water management; adopting a
holistic approach so that FRM is part of wider risk or multi-hazard management of
earthquakes, landslides, and storm surges; managing risk and uncertainty as a whole
so it not only mitigates hydrological uncertaintics but also social, cconomic and
political uncertainties on account of human behavior and the cultural dimensions of
FRM.

Gender Equality refers 10 the principle asserting the equality of men and women and
their right to enjoy equal conditions realizing their full human-potential to contribute
to and benefit from the results of development, and with the State recognizing that all
human beings are free and equal in dignity and rights.

Infrastructure and public works refer only to wholly or primarily water-related
projects and does not include projects that do not fall within the purview of the
objectives, power and duties of the Departmen of Water Resources created under this
Act.

Integrated Water Resource Management (IRM) refers to a systematic, collaborative
and multi-stakeholder process which promotes the coordinated development and
management of water, land, and related resources within geophysical boundaries in
order to maximize the resultant economic and social welfare in an equitable manner,
and without compromising the sustainability of vital ecosystems.

Levels of water supply refer to communal sources of water described according to
location and size of the recipient human settlement as follows:
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(1) Level T or the point source is a protected well or a developed spring with an
outlet but without any distribution system, generally adaptable to rural and
upland areas where -houses are thinly scattered, and is a facility which usually
serves an average of 15 households.

(2) Level 11 or the communal faucet system or stand posts is a system composed
of a water source, a reservoir, a piped distribution nctwork, and communal
faucets where one faucet serves 4 to 6 houscholds and is generally suitable for
rural and urban fringe areas where houses are clustered densely to justify a

simple piped system.

(3) Level IIL oF the waterworks system or individual house connections is
system with @ water source, a reservoir, a piped distribution network and
household taps, suitable for densely populated urban areas,

(i) License refers to the Water Supply and/or Sanitation Services Operating License that
the Water Regulatory Commission is authorized to grant and issue to service
providers.

() Licensee refers to a service provider to whom a license is granted or issued by the
Water Regulatory Commission.

{k) Missionary Wuter Services refer to water supply or services to areas that have no
existing safe water supply and services duc to geographic limitation or absence of
‘conomic and market viability.

National Water Resources Management Plan (NWRMP) refers to a policy document
that contains a framework to guide the development and management of all the water
resources in the Philippines, the general strategies and work to be pursued to ensure
the sustainability of the resource towards water security, and top-level direction on the
utilization of existing water resources in line with national development plans,
policies, and programs in accordance with the [WRM framework. The NWRMP shall
also include a water infrastructure development program for all waters of the country
as well as provide general guidance on how this shall be supported within an
integrated financing framework that can draw from public, private, and international
development funding sources.

a

(m) Net Waste Load refers to the difference of the initial waste load of the abstracted water
and the waste load of the final effluent discharge of an industry

{n) Regulatory Units refer to the offices established under Section 20 of this Act which
issue licenses authorizing the operation of Water Supply and Sanitation Services, and
provide, review, determine, fix, and approve water and sewerage tariffs, rates, and
charges that licensees may impose

(0) River basin refers to an area of land drained by a stream or body of fixed water and its
tributaries which have a common outlet for surface run-off.

(p) River Basin Organization (RBO) refers to multi-stakeholder organizations which plan,
coordinate, and monitor activities within a river basin cluster.
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(q) Sanitation refers to the provision of facilities and services for the safe management of
human excreta, from toilet to containment, and storage and treatment onsite or
conveyance, treatment and cventual safe end use ot disposal, and includes the safe
management of solid waste and animal waste,

(r) Sediment management refers to control of sediment erosion and deposition in rivers,
reservoirs, and coastal zones through non-structural and structural measures and
control works.

(s) Sustainable Development Goals (SDGs) also known as the 17 Global Goals refer to
the universal call to action to end poverty, protect the planet and ensure that all people
‘enjoy peace and prosperity by 2030 adopted by all United Nations Member States in
2015.

{t) Septage is the liquid and solid material pumped from a septic tank, cesspool, or other
primary treatment source,

{u) Septage Management refers to the provision of proper collection, treatment, and
disposal of septage.

() Service Area refers to the area covered by the water distribution system, sewerage,
and /or septage management services.

(w) Service Provider refers to any entity, natural or juridical, whether private or public,
providing or intending to provide levels I! & III water supply, including bulk water
suppliers, sewerage, septage treatment, and disposal services for domestic, residential,
industrial, or commercial use.

() Sewage refers to water borne human or animal wastes, excluding oil or oil waste,
removed from residences, buildings, institutions, and industrial and commercial
establishments together with such groundwatcr, surface water and storm waters as
may be present including such waste from vessels, offshore structures, other
receptacles intended to receive or retain waste or other places or the combination
thereof.

iy) Sewerage refers to any system or network of pipelines, ditches, channels or conduits
including pumping stations, lift stations and force mains, service connections
including other infrastructure, devices, or appliances appurtenant thereto, which
include the collection, transport, pumping and treatment of sewage to a point of
disposal.

(2) Sewers refer to pipes or such other works or structures which are built and constructed
to carry, transport, and dispose of sewage.

(a9) Social inclusion refers to the process of improving the terms for disadvantaged
individuals and groups to take part in society.

(bb) Tariffs refer to such amounts which may be charged by licensees for their water
supply and sanitation services based on principles, standards, and guidelines
estublished by the Department of Water Resources,

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(cc) Water Demand Management (WDM) telers to any method. whether technical,
‘economic, administrative, financial, or social that will accomplish one or more of the
following:

(1) Reduce the quantity or quality of water required to accomplish a specific task;

(2) Adjust the nature of the task or the way it is undertaken so that it can be
accomplished with less water ar with lower quality water;

(3) Reduce the loss in quantity or quality of water as it flows from source, through
use, to disposal:

(4) Shift the timing of use from peak to off-peak periods; and

(5) Increase the ability of the water system to continue to serve society during times
when water is in short supply.

(dd) Water Disiricts refer 10 government-owned and controlied corporations organized
under Presidential Decree No. 198, as amended, created primarily to acquire, install,
operate, maintain, and improve water supply and distribution systems for domestic,
industrial and municipal uses of residents and to provide, maintain and
wastewater collection, treatment and disposal facilities within the boundaries of the
district.

(ee) Water pollution refers to any alteration of the physical, chemical, biological, or
radiological properties of a body of water resulting in the impairment of its purity or
quality.

(ff) Water Resource refers to water under the ground or groundwater, water above the
ground such as surface water, run-ofls, floods, stormwater and urban drainage, treated
wastewater, water in the atmosphere or rain water, and the waters of the sea within the
territorial jurisdiction of the Philippines.

(gg) Water Resources Regions refer to the contiguous clusters of river basins which are
grouped together according 10 the hydrological boundaries. physiographic features,
and homog climate, whether or not they straddle different local government
units, for administrative purposes under the Department of Water Resources,

(oh) Water Service Provider (WSP) refers to the water district, any Local Government Unit
(LGU)-run water utility, Barangay Waterworks and Sanitation Association (BWSA),
Rural Waterworks Sanitation Association (RWSA), cooperative and private sector
entity that provides water supply services to any given area,

(i) Water supply service refers to any activity comprising Levels |, II and [I] water supply
including bulk suppliers, supplicrs to subdivisions, and other water service providers.

CHAPTER II
THE DEPARTMENT OF WATER RESOURCES
SEC. 4, The Department of Water Resources ~ There is hereby created and established
the Department of Water Resources, hereinafter referred to as the Department.
5


SEC, 5, Mandate of the Department. ~The Department shall be the primary agency
responsible for the comprehensive and integrated identification and mapping of all water
resources, planning, policy formulation, and management of the ownership, appropriation,
utilization, exploitation, development, and protection of water resources in the Philippines to
ensure the optimal use thereof for domestic and municipal water supply, sanitation, irrigation,
hydropower, industry, navigation, flood management, and recreation except fisheries or
aquaculture.

‘The Department shall also be the primary agency responsible for the planning and
policy formulation towards the attainment of universal access to safe, adequate, affordable,
and sustainable water supply, and improved sanitation services for all Filipinos.

The Department shall be the primary national agency to enforce Presidential Decree
No. 1067 otherwise known as The Water Code of the Philippines and Republic Act No. 9275,
otherwise known as the Philippine Clean Water Act of 2004.

The Department shall exercise the powers and functions of the defunct Pasig River
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and
abolished under Executive Order No. 93 Series of 2019, specifically the following roles that
were transferred (a the Manila Bay Task Force and DENR through the latter EO:

(a) Update and take the lead in the overall implementation of the Pasig River
Rehabilitation Master Plan, which shall hamess the Pasig River's potential for
transportation, recreation and tourism purposes while undertaking the

rehabilitation and restoration of its maritime life; and

(b) Ensure that the casements provided for in the Civil Code and other relevant laws
are enforced, especially in ail the esteros and waterways that drain into the Pasig
River as well as abate the dumping of untreated industrial wastewater and sewage
into the river, including all acts and omissions in violation of Presidential Decree
(PD) No. 984, 5, 1976, as amended entitled. Providing For The Revision Of
Republic Act No, 3931, Commonly Known As The Pollution Control Law, And
For Other Purposes, PD No. 274, s, 1973 entitled, Pertaining To The
Preservation, Beautification. Improvement And Gainful Utilization Of The Pasig
River, Providing For The Regulation And Control Of Pollution Of The River And
Its Banks In Order To Enhance Its Development, Thereby Maximizing Its
Utilization For Socio-Economic Purposes, and other related laws.

SEC. 6, Guiding Principles. ~In the parsuit of its mandate, the Department shall be
guided by the following key principles:

{a) The concept of good water governance for water security and sufficiency shall be
adopted across all levels of governance by stakeholders such as the national
government, local government, non-government organizations, private organizations,
individuals, even global societal actors, and in various sectors such as water supply,
irrigation, fisheries, hydropower, navigation, ecosystem services, flood management,
climate change, and recreation, [t shall entail publicly transparent, socially
accountable, and multi-stakeholder participatory water policy planning, management,
and decision-making processes.


(b) Access to safe water supply and improved sanitation is a human right that needs 10 be
fulfilled and protected.

(c) Integrated Water Resource Management (IWRM) shall be adopted as the basic
framework which is the coordinated development and management of water, land, and
related resources within hydrological boundaries to optimize economic and social
welfare without compromising the sustainability of vital ecosystems. The |WRM
Framework shall include an enabling environment that utilizes proper policies, legal
instruments, and institutional frameworks for effective implementation, participatory
and collaborative water policy and management decisions, and management
instruments for efficient use of updated and accurate data, science-based decision
support systems, proper information, education, communication (IEC) programs,
assessment and allocation tools, or regulatory functions. It shall observe the mutual
accountability mechanism among stakeholders at the national, regional, and global
levels reinforcing multi-stakeholder decision-making following a framework with
specific, measurable, attainable, relevant, and timely actions.

(4) Each river basin has its unique characteristics relating to the physical, socio-cultural,
and other aspects, and water management shall be performed at river-basin level,
involving all the stakeholders at that particular river basin.

(c) Integrated and accurate data collection and analysis and the use of scientific decision
Support systems shall be undertaken in water resources management including flood
modeling and warming systems that are essential for an effective, efficient, and
sustainable water resources management system.

(f) The development of water resources shall include strategies for the mitigation of
water-related hazards and climate change adaptation.

(g) Water resources and services should be provided where they are intended and most
needed so that water is fairly and sustainably managed,

(h) The proper operation and maintenance of waterworks systems resulting in the
uninterrupted and adequate supply and distribution of potable water for domestic and
other purposes, and the proper operation and maintenance of sewerage systems which
are essential services to public health and safety, are to be ensured at all times. The
State shall therefore supervise and control the establishment, operation, and
maintenance of such systems.

SEC 7. Objectives of the Department. ~The Department shall:

(a) Promote and adopt water demand management as a national policy to ensure that
water is optimized, that water efficiency and conservation become a way of life, that
the recycling and reuse of watcr and treated wastewater are widely practiced, that
water is properly priced to encourage efficient use and conservation and that
rainwater, flood waters, and run-offs are captured or harvested, stored and treated for
future use:

(b) Prioritize and seck the immediate attainment of universal access to safe, adequate,
affordable and sustainable water supply and improved sanitation services for all
7


Filipinos in a manner consistent with the protection, preservation, and revival of the
quality of the country’s water resources, and to adopt all needed measures to advance
the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature.

{c) Strengthen and coordinate integrated water resources management planning and
policy making to cnsure sustainable and fair allocation and efficient use of water
Tesources among competing uses and users;

(d) Ensure that integrated water resources management is strongly coordinated with land
use and coastal and multi-hazard planning and management;

{e) Develop sustainably, and manage water sources and water resources toward water
‘security, taking into consideration water, land, and related resources aimed at
increasing water dependability for different uses, optimizing economic benefits and
social welfare without compromising the sustainability of vital environmental
systems;

( Strengthen and coordinate policy making and planning towards ensuring the
availability of water for food security and energy security, as well as towards the
protection of communities and environments against flood and other water induced
hazards including sediment hazards;

(g) Ensure that the strategy for water resources development and conservation is
participatory, and that planners, policymakers and users including community
members are involved at all levels;

(h) Develop a standardized pricing framework for water use that accounts for
‘environmental externalities; and

(i) Ensure that all sources of water, including surface water, groundwater, rainwater and
floodwater arc identified, mapped, monitored, conserved and managed for productive
use and the resulting wastewater is managed properly, reuscd, and responsibly
disposed of following approved environmental standards.

‘SEC.8. Powers and Functions of the Department. ~ The Department shall have the
following powers and functions:

1. Policymaking and Planning

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

(b) Formulate policies, strategies, and targets in coordination with other relevant entities
to meet the goals and objectives for water supply and sanitation, water quality,
irrigation, hydropower, flood control, stormwater utilization, and urban drainage.
Such policies shall, among other guidelines, integrate the issues of water and
sanitation, food security, energy, environment and flood control, and climate change;

8


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

(a) Regularly update, every five years or as deemed necessary by the Department, and in
consultation with other agencies and stakeholders, the NWRMP following the |WRM
framework and integrate therein a national land use plan;

(c) Undertake river basin survey, inventory and appraisal of water and related resources,
and develop comprehensive basin-wide plans of storage, retardation, and contro! to
maximize conservation and multipurpose use of water in the basin:

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

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

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

Review, approve, and provide oversight over all water-related development plans and
programs of any agency within the context of the NWRMP, and overall national plans

and programs,

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

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

(1) Ensure that the planning and design of water infrastructure considers the highest
efficiency and most appropriate technology and quality, in accordance with national

development objectives:


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

(n) Build a central repository of water data and effect inter-sectoral, inter-agency, and
inter-departmental coordination on all aspects of data gathering and management for
water resources development planning and compel the submission of statistics and
data on water utilization with the aim of operationalizing the integrated approach to
water resources management;

(0) Ensure the effective implementation of all the provisions of Republic Act No. 9275.
Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter II of
Presidential Decree No. 856, otherwise known as the Code on Sanitation of the
Philippines;

{p) Promote Philippine participation in information sharing and education on best
Practices in support of international efforts to achieve universal access to safe water
and improved sanitation; and the integration of water, energy, environment and food
security: and

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

I. Resource Regulation

(a) Manage and conserve the country's water resources to ensure the optimal use thereof
for domestic water supply, sanitation, irrigation, hydropower, navigation, flood
control, and recreation purposes, and enhance and maintain water quality, conserve
watersheds, control water pollution, and restore the environment, without
compromising the natural ecosystem functions and services;

(b) Regulate and contro! the utilization, abstraction, diversion and development of water
resources, taking in consideration their equitable distribution among competing
demands and determine the standards of beneficial and priority uses of water in times
of crisis and national emergencies;

{c) Formulate, promulgate, and enforce rules and regulations for the development and
optimum use of water resources and its administration and management, including
coherent water protocols, operating rules of all existing and future water
infrastructure; general criteria, methods and standards for basic data collection and
Project identification, formulation and planning, and appropriate sanctions to be

imposed for non-compliance;

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

{e) Impose fees or charges, as may be decmed necessary for water resources conservation
and protection, such as:

10


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

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

(3) Appropriate payment structures for environmental services.

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

(g) Collect, regularly update, monitor, and analyze water resources data including
climatology, hydrological and other water-related data and ensure that such data is
easily accessible by relevant and authorized users;

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

(i) Maintain 2 database that will contain updated relevant information on water data
which will be accessible by relevant and authorized users;

(j) Devetop and continuously update a computerized decision support system that
incorporates data management systems relating to acquisition and database, model
base in terms of physical design, planning and decision models, and user-friendly
imerface concerning graphical and visualization tools;

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

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

II, Institutional Arrangement with Public Water Organizations

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

(b) Develop materials for capacity building and training of prospective RBOs;

(c) Authorize its representatives or any deputized agent to enter any property of public
dominion with or without prior notice and consent, any private land, building or
enclave, whether inhabited or not, for the purpose of conducting hydrologic surveys

n


and investigations, including assessing and evaluating the conditions of water
facilities installed, and determining compliance with water laws and standards;

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

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

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

(g) Appoint, hire, and maintain adequate staff and personnel, advisers or consultants with
suitable qualifications and experience, as necessary, subject to existing rules and
regulations.

IV. Coordination

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

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

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

(4) Coordinate proactively with LGUs to ensure the integration of water resources
development plans into their comprehensive land use plans (CLUPs). Comprehensive
Development Plans (CDPs) or Provincial Physical Framework and Development Plan
(PPFDP).

V. Other Functions:

(a) Create when necessary, water resource subsidiaries, instrumentalities, and entities to
engage in water transmission, water distribution, wastewater treatment and
management, and sanitation in accordance with existing relevant laws;

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

12


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

SEC. 9, Secretary of the Department of Water Resources. ~ The authority and
responsibility for the exercise of the mandate of the Department and for the discharge of its
powers and functions shall be vested in the Secretary of the Department, hereinafter referred
to as the Secretary, who shall:

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

(>) Establish the policies and standards for the operation of the Department pursuant to
the President's guidelines,

(©) Promulgete rules and regulations necessary to carry out the objectives, policies, and
functions of the Department;

(4) Exercise supervision and control over all bureaus and offices under the Department;
(e) Supervise all attached agencies and corporations in accordance with law;
(f) Represent the Department in contracts, awards, and other similar agreements;

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

(h) Act as the Chairperson of the governing board of the attached agencies of the
Department;

(i) Designate and appoint officers and employees of the Department, excluding the
Underscerctaries, Assistant Secretaries, and Regional and Assistant Regional
Directors, in accordance with the civil service laws, rules and regulations; and

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

SEC. 10. Office of the Secretary. ~ The Office of the Secretary shall be composed of
the Secretary, Undersecretary, Assistant Secretary and the Secretary's immediate staff.

SEC. 11. Undersecretaries.— The Secretary shall be assisted by not more than five (5)
Undersecretaries, who shall be appointed by the President upon the recommendation of the
Secretary namely: Undersecretary for Resource Regulation and Governance, Undersecretary
for Inland Waters and Water for Agriculture, Undersecretary for Resource Development,
Undersecretary for Planning and Policy and Undersceretary for Missionary Water, Indigenous
People, and Special Concerns.

The Secretary is hereby authorized to delineate and assign the respective functional

areas of responsibility of the Undersecretaries in accordance with the mandate and objectives
of the Department; Provided, That no Undersecretary shall be assigned purely to

13


administrative responsibilities. Within their respective functional arcas of responsibility, the
Undersecretaries shall:

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

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

{c) Perform such other functions deemed necessary as may be assigned or delegated by
the Secretary to promote efficiency and effectiveness in the delivery of public services
or as may be required by law: Provided, That the Undersecretary for Planning and
Policy shall, in coordination with the Planning and Policy Service, be primarily
responsible for advancing current efforts in attaining the ultimate goal of universal
access to water supply and sanitation systems, and sustainable management of water
resources under the SDGs, and the integration of water, cnergy, environment and food
security.

SEC. 12. Assistant Secretaries. ~The Secretary shall be assisted by six (6) Assistant
Secretaries to be appointed by the President of the Philippines upon the recommendation of
the Secretary: one each for Planning and Policy Service, Decision Support System Service,
Resource Regulatory Service, Comptrollership and Financial Management Service, Legal and
Legislative Service, and Administrative and Human Resources Management Service.

No person shall be appointed Secretary, Undersecretary and Assistant Secretary of the
Department unless the person is a citizen and resident of the Philippines, of good moral
character, of proven integrity, competence and expertise in watcr resource management:
Provided, That at least one (1) of the Undersecretaries and at least two (2) of the Assistant
Secretaries shall be career officers.

SEC, 13, Organizational Structure, — The Department shall be composed of the
following organizational units:

(2) Department Proper. - The Department shall consist of the Office of the
Secretary, the Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit
Office, the Public Affairs Office, the Water Pollution Adjudication Board, the Planning and
Policy Service, Decision Support System Service, Administrative and Human Resources
Service, Legal and Legislative Service, Comptrollership and Financial Management Service,
Resource Regulation Service, and the Water Resources Regional Offices.

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

(1) The Local Water Utilities Administration (LWUA), whose mandate, powers, and
functions are defined in Presidential Decree No. 198, otherwise known as the
Public Water Utilities Act of 1973, ax amended, shall be transferred from the
Department of Public Works and Highways and attached to the Department. It
shall continue to primarily function as a specialized lending institution for the

16


promotion, development, and financing of local water utilities. In the
implementation of its functions, the LWUA shall:

(i) prescribe minimum standards and regulations in order to assure acceptable
standards of construction materials and supplies, maintenance, operation,
personnel training, accounting and fiscal practices for local water utilities;

(i) furnish technical assistance and personnel training programs for local water
utilities;

(iii) monitor and evaluate local water standards; and

(iv) _ effect system integration, joint investment and operation, district annexation
and de-annexation whenever economically warranted as amended by
Section 22 of Presidential Decree No. 768.

(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate,
powers, and functions are defined under Republic Act No. 6234, as amended
entitled, An Act Creating The Metropolitan Waterworks And Sewerage System And
Dissolving The National Waterworks And Sewerage Authority; And For And For
Other Purposes, shall be transferred from the DPWH and attached to the
Department: Provided, That the MWSS shall continue to facilitate the exercise by
the concessionaires of their responsibility; carry out accounting and notification
functions; monitor, report, and administer loans; perform related functions in
connection with existing projects; manage and dispose its retained assets; and
manage and operate the Umiray-Angat Transbasin Project;

(3) The National Irrigation Administration (NIA), whose mandate, powers, and
functions are defined under Republic Act No. 3601 as amended by Presidential
Decree No, 552 and Presidential Decree No. 1702;

(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and
functions are defined under Republic Act No. 4850, as amended entitled, An Act
Creating The Laguna Lake Development Authority, Prescribing lis Powers,
Functions And Duties, Providing Funds Therefor, And For Other Purposes shall
be transferred from the DENR and attached to the Department.

‘The LLDA shall continue to serve as the lake management and development
authority similar to a multi-stakeholder river basin organization and shall ensure
the implementation of the Laguna Lake Master Plan which shall be updated by the
Department to ensure alignment with the NWRMP.

Any other agency performing water resources management, conservation and protection
functions may be transferred to the Department as the President deems necessary.

(©) Offices. Functions and Personnel ta be Completely Subsumed under the
Department, ~ The following offices with their powers, functions, personnel, applicable
funds and appropriations, records, equipment and property shall be subsumed under the

ent:

15


(1) The National Water Resources Board (NWRB) with all its divisions and sections,
whose mandate, powers and functions are provided in Presidential Decree No.
424, as amended;

(2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers
and functions are provided in Executive Order No. 510 and Executive Order No.
816, as amended;

(3) The Manila Bay Coordinating Office (MBCO) of the DENR which was
strengthened by virtue of DENR Administrative Order (DAO) 2011-01 to
coordinate the efforts of the fourteen (14) national agencies covered by the
Mandamus Order of the Supreme Court to rehabilitate Manila Bay;

(4) The Water Resources Management Division of the Bureau of Soils and Water
Management of the Department of Agriculture (DA):

(5) The Water Supply and Sanitation Unit of the Department of the Interior and
Local Government (DILG); and

(6) The Water Quality Management Section of the Environmental Management
Bureau (EMB) of the DENR.

(d) Functions to be Transferred to the Depariment. ~ The following functions of the
respective agencies, bureaus, and units shall be transferred to the Department:

(1) The hydrological surveys and groundwater mapping function of the Mines and
Geosciences Bureau (MGB) of the DENR;

(2) The hydrological surveys monitoring of stream flow and water data collection
function of the Bureau of Design and Bureau of Research and Standards of the
DPWH;

(3) The protection and conservation of natural wetlands such as lakes, marshes,
swamps of the Biodiversity Management Bureau of the DENR:

(4) The planning, programming, administration, monitoring, management of the
National Sewerage and Septage Management Program (NSSMP) by the DPWH;

(5) The flood management planning and sediment management function of the Flood
Control Management Cluster of the DPWH; and

(6) The Water Resource Management Division and the water research functions of the
Soils and Water Research Division of the Bureau of Soils and Water Management
under the DA, All soil-related functions shall be retained under the Bureau which
shall be renamed as the Bureau of Soils.

16


(a) Support Services - The Department shall create the following support services:

(1) The Planning and Policy Service shalt provide the Department with the capability
fo undertake water infrastructure development planning and programming, and
shall exercise the following functions:

Gi)
Gi)

(iii)

(iy)

tv)

(vi)

(vii)

{ix}

oo)

(xi)

Advise the Sceretary on all matters relating to water resources planning:

Assist the Undersecretary for Planning and Policy on all matters related
to the specific functions of the posit

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

Develop and regularly update a comprehensive and integrated National
Water Resources Management Plan and ensure its integration into
existing land use plans;

Coordinate river-basin planning following the integrated water resources
management framework and the river-basin approach;

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

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

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

Gather, analyze and organize needed statistical data and information;

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

Conduct hydrological and hydraulic surveys and assessments of surface
waters;

17


{xii)

(xiii)

(xiv)

(xv)

Develop general criteria and standards on project investigation,
formulation, planning:

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

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

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

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

w@

(ii)

(iii)

(iv)

Provide the Secretary the necessary data and processed information to
aid in policy and management decisions under the mandate of the

Department;

Publish available real-time raw water data as well as verified or validated
water data in print or electronic form using latest internet technology;

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

Develop and continuously update water resource management,
computerized decision support systems (DSS) that incorporate data
‘management systems relating to acquisition and databasc, model base in
terms of physical, design, planning and decision models, and
user-friendly interface such as graphical and visualization tools;

‘The DSS is composed of: 1) a measurement or data acquisition system; 2)

information or database management system; 3) analytical and numerical
models for design, planning, decision or evaluation purposes, and 4) a
user-friendly interface which includes graphical interface or visualization
tools.


(vy) Develop and maintain specific models to include the following:

a) long-term climatologic and weather forecasting model;

b) watershed models and river-floodplain models;

c) groundwater models and coupled to surface water models;

d) Mood forecasting model for major rivers;

¢) optimization-simulation management models for watershed
conservation, conjunctive surface and groundwater use, irrigation
scheduling, normal and emergency operations of multi-purpose
reservoirs; and

1) water quality and ecological models.

(vi) Develop and administer the management information system and
knowledge systems of the Department to:

a) Retrieve, process, and monitor information on all projects and activities
in the web portal;

b) Conduct and apply systems and process engineering, software
development, software configuration management,

©) Develop and manage its corporate database, unified database for water
industry, data warehouse, other water information resources, library
services and document management and archiving services;

d)

Develop and manage its Information and Communications Technology
(ICT) infrastructure and ICT related-services including computer
networking and voice communications services and data exchange, and

) Manage the literacy and training services of the Department on various
ICT and Knowledge Management (KM) tools and applications, including
information and knowledge management.

(vii) Perform such other related functions and activities which are necessary for
the effective administration of the management information and knowledge
systems of the Departmen

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

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

19


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

(iii) Provide services related to human resource—training, education and
development including manpower, career planning and forecasting, and
development of indigenous training materials;

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

(v) Develop, establish, and maintain an efficient and effective security system
covering, among others, personnel, physical installations, facilities,
equipment, documents and materials including the conduct of security
investigations;

(vi) Coordinate with the appropriate government agencies for a more efficient
conduct of administrative processes;
(vii) Develop, establish, and maintain an efficient records system:

(viii) Provide assistance in its area of specialization to the Department Proper,
bureaus and regional and water district offices and, when requested, to the
government agencics and corporations attached to the Department; and

(x) Perform such other related functions and activities which are necessary for the
effective management of the resources of the Department, including its human
Tesources,

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

(i) Advise the Secretary on all matters relating to legal and legislative affairs;

(ii) Prepare Department contracts and legal instruments, review and interpret
all contracts and agreements entered into by the Department and evaluate
all legal proposals;

(iii) Conduct administrative investigation and the review of administrative
charges against officers and employees of the Department;

(iv) Exercise functional jurisdiction over the legal staffs of Regional Offices;
(v) Provide legal assistance to the Department Proper, the bureaus and regional

offices and when requested, the attached corporations;
20


(vi)

(vii)

(viii)

(x)

(x)

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

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

Perform liaison and networking activities in relation to the enactment of
related laws relating to water resources issues in legislative policymaking
bodies such as the Senate of the Philippines, the House of Representatives,
and the various Sanggunians;

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

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

objectives.

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

@

(i)

(iti)

(iv)

ty)

(id

Advise the Secretary on all matters relating to the accounting of government
expenditures and receipts, budgeting and cash management, project finances
and financial systems and procedures:

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

Develop and maintain accounting, financial and assets management systems,
procedures and practices in the Department Proper, Bureaus and Regional
Offices;

Review and appraise systems and procedures, organizational structure, assets
management practices, accounting, and other records, reports, and
performance standards such as budgets and standard costs of the Department,
bureaus, and regional offices;

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

Perform such other related functions and activities which are necessary for the
effective financial management of the Department,

a


(6) The Resource Regulation Service shall provide the Department with services for
the effective regulation of all water-related services and activities and shall
exercise the following functions:

(i) Advise the Secretary on all matters relating to resource regulations;

(ii) Determine, grant and regulate water rights for the appropriate, optimal and
sustainable use of surface and ground water;

(iii) Determine and evaluate waterworks and sewerage licenses, and submit
evaluation results to the Water Regulatory Commission for the latter’s
consideration in granting of licenses;

(iv) Investigate violations of the water rights and the Water Code, and impose the
appropriete sanctions in accordance with existing laws, rules and regulations
as well as future rules and regulations which the Department shall
promulgate;

(v)  Adjudicate water use conflicts; and

(vi) Perform such other related functions and activities which are necessary for
the effective regulation of water-related services,

(2) The Internal Audit Service shall regularly conduct a comprehensive audit of
various Department activities and shall exercise the following functions:

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

(ii) Conduct a performance audit of the management and operations of the
Department, its activities, the performance of all units, and determine the
degree of compliance of all operating units with established objectives,
policies, standards, methods and procedures, goverment regulations and
contractual obligations of the Department;

{iii) Review and appraise systems and procedures, organizational structure,
assets management practices, accounting and other records, and
performance standards such as budgets and standard costs of the
Department Proper, bureaus and regional offices;

(iv) Analyze and evaluate management deficiencies and recommend realistic
courses of action; and

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

(8) The Public Affairs Service shail enhance relations with all stakeholders including
the media, for the cffective dissemination of information relating to water-related
issues, including important announcements on policies and activities of the

22


department that are of interest to the general public. It shall ensure that women,
men, elderly, and people with disabilities shall be consulted, organized and take
active part in all aspects of water resources development and management
activities. It shall also Icad the planning and organizing of special events, and shall
exercise the following functions:

(i) Public Awareness
a) Advise the Secretary on matters pertaining to public affairs;

b) Develop and supervise the implementation of comprehensible
communications programs on relevant policies, programs and plans of the

Department;

©) Produce and supervise the dissemination of communication materials in
line with the priorities of the Department and national government public
information programs;

@) Conduct public opinion and attitude surveys to identify the interests and
concems of the stakeholders of the Department:

Establish policies on the presentation and publication of the content of the
communication materials for dissemination to print and broadcast media:

f) Establish and maintain linkages with the tri-media and a presence in
social media;

8) Coordinate the conduct of interviews and news conferences,

bh) Make public announcements on matters relating to the work and activities
of the Department through the print and broadcast media, cither through
press releases or live interviews;

i) Coordinate with various Department units, concemed goverment
agencies, tri-media and other stakeholders on matters related to the
above-enumerated functions; and

j) Coordinate with the appropriate national government agencies involved in
public information affairs,

(ii) Promote Participation
a) Conduct public consultations and discussions;

b) Develop and disseminate relevant and appropriate materials and
programs for public information and education, as well as advocacy

campaign;
©) Conduct seminars and workshops involving the LGUs and the general

public on current water issues and problems; and
23


4) Conduct capability building seminars of various stakcholders to promote
meaningful participation in the Depariment’s policy making, planning,
development and implementation of Various programs and projects.

(iii) Special Events

a) Coordinate the organization and promotion of special events and water
exhibits;

b) Actas the focal office for all water related events; and

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

(e) Bureaus. ~ The Department shat] create burcaus which shall each be headed by a
Bureau Director. The Bureau Director shall be responsible for the efficient and
effective discharge of the functions of the Bureau concerned. The Bureau Director
shall be assisted by one (1) Assistant Director.

(1) Bureau of Flood Control and Drainage shail plan and design flood control and
drainage structures and facilities in accordance with technical standards,
guidelines and manuals, For this purpose, it shall have the following duties and
responsibilities:

(i) Formulate policy, strategies and programs on flood risk management in the
context of integrated flood management (IFM) which integrates water, land,
coastal zone and multi-hazard management. In integrating land use planning
and water management, the Department shall harmonize and synthesize plans
to enable the sharing of information between land-use planning and — water
management authorities. In this regard, a holistic approach shall be adopted by
making the [FM a part of a wider risk or multi-hazard management system
that includes earthquakes, landslides, fires, tsunami, and other calamities of
the same gravity of nature;

(ii) Integrate climate change and disaster risk reduction and management in
policies and plans;

(iii) Prepare master plans of flood management and drainage in river basins in
coordination with the concemed water resources region and river basin
organizations;

iv) Prepare master plans for urban drainage in cities and municipalities;

(v) Prepare feasibility studies of recommended measures in the master plans;

(vi) Plan and design structural measures for flood control and drainage;

(vii) Implement and collaborate with concerned agencies on the formulation and
adoption of non-structural measures for flood control and drainage;
24


(viii) Patrol and investigate rivers, and monitor stream flows;

(ix) Conduct post-disaster investigation and evaluation and damage assessment of
flood infrastructures after extreme events;

(x) Conduct research and development on water and sediment-related disasters;

(xi) Develop design guidelines, criteria, and standards on flood control and
drainage structures;

(xii) Provide technical assistance to other agencies, LGUs, and other stakcholders;

(xiii) Advise the Secretary on declaring flood control areas and recommend
guidelines for floodplain management plans in these areas; and

(xiv) Perform such related activities which are necessary for the effective
performance of its functions,

(2) Bureau of Water Quality Management shall supervise and exercise control over all
aspects of water quality management to ensure the sustainability of the country’s
water resources and the protection of the environment, It should take into account
proper and integrated treatment of freshwater and wastewater within the whole
process. For this purpose, the Bureau shall cxercise the following functions:

(i) Establish water quality guidelines for freshwater and coastal or marine
waters as basis for classifying water bodies in the country. Specifically,
develop water quality indices or composite metrics to measure the quality
status and health of natural water bodies in relation to ecological integrity and
function;

(ii) Establish effluent standards for point discharges to receiving bodies of water;

(iii)Establish internationally accepted procedures for sampling and analysis;

Civ)Prepare an integrated water quality management framework;

(v) Prepare the ten-year water quality management plans for cach water quality
sence area as part of the River Basin Master Plans and in support of the

(vi)Classify groundwater sources and prepare a national groundwater vulnerability
map:

(vii) Classify or reclassify all water bodies according to their beneficial usages
using the established water quality guidelines established;

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

(ix)Collect the wastewater discharge fees for all permittees;
3


(x) Monitor the compliance of water discharge permittees with the effluent
standards.

(xi)Regularly monitor the water quality of major water bodies in the country and
analyze the data to identify possible sources af pollution;

(xii) _ Issue notices of violations and/or cease and desist orders for those found in.
violation;

(xiii) File the needed cases against violators with the Water Pollution
Adjudication Board (WPAB):

{xiv} Serve as secretariat of the WPAB, and

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

(3) A Water Resources Regional Office (WRRO) shall be organized per water
resources region and shall be responsible for implementing the mandates, powers
and duties of the Department at the field level, except for policymaking which will
be vested solely in the Department. The formulation of the master plan for the
nearby river basins such as the Pasig-Marikina-Laguna Lake-Cavite, shall be the
responsibility of the Department. Each WRRO shall perform the following duties
and responsibilities:

(i) Formulate or update and coordinate the river basin master plans for river basins
within its jurisdictions ensuring consistency with the National Water Resources
Management Framework Plan;

(ii) Advocate and strongly support the creation and functioning of
multi-stakeholder river basin organizations (RBOs) and serve as the secretariat
of the said RBOs;

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

(iv) Ensure the implementation of laws, policies, programs, rules and regulations
regarding the above mentioned infrastructure as well as public and private
physical structures;

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

(vi) Coordinate with other departments, agencies, institutions and organizations,
especially local government units within the region in the planning and
implementation of the river basin master plans;

(vii)Conduct consultations with the local communities, take appropriate measures
to ensure that the scrvices of the Department are responsive, and recommend
such appropriate actions 8s may be necessary; and

26


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

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

Each Water Resources Regional Office shall be headed by a Water Resources Regional
Dircetor who shall be responsible for efficiently and effectively carrying out the duties and
responsibilities of the Office. Towards this end, the Water Resources Regional Director shall
exercise functional and administrative supervision over all units within the region and is
authorized to commit resources and assign personnel to integrated regional water resources
management, water supply and sanitation management, and flood control and flood risk
management initiatives. The Water Resources Regional Director shall also perform such
other related duties and responsibilities as may be assigned or delegated by the Secretary or
as may be required by law.

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

SEC. 14. Water Pollution Adjudication Board. ~ There is hereby created a Water
Pollution Adjudication Board under the Office of the Secretary. The Board shall be composed
of the Secretary as Chairperson, two (2) Undersecretaries as may be designated by the
Secretary, the Director of Water Quality Management Bureau, and three (3) other
representatives from other stakeholders to be designated by the Secretary as members.

The Board shall assume the powers and functions of the National Pollution Control
Commission with respect to the adjudication of water pollution cases under Republic Act No.
3931 entitled, An Act Creating The National Water And Air Pollution Control Commission,
Presidential Decree 984 entitled Providing For The Revision Of Republic Act No. 3931,
Commonly Known as the Pollution Control Law, And For Other Purposes, particularly with
respect to Section 6 letters e, f, g, j, k and Republic Act No. 9275. The Bureau of Water
Quality Management shall serve as the Secretariat of the Board. These powers and functions
may be delegated to the field officers of the Department in accordance with rules and
regulations to be promulgated by the Board.

CHAPTER I
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT

SEC. 15, Interface and Institutional Arrangements with Other Agencies. ~

{a) The Department of Health (DOH) shall continue to have primary authority and
responsibility for sctting and enforcing drinking water quality standards. The
Department shall coordinate with the DOH in this aspect, and shall ensure consistency

27


of standards and targets, as well as the compliance of permittees with mandated
standards;

(b) The Department of Environment and Natural Resources (DENR) shall continue to
have primary authority and responsibility for protecting the environment and
‘managing the country’s watersheds;

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

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

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

(f) The Department shall coordinate with Climate Change Commission (CCC),
Philippine Atmospheric, Geophysical and Astronomical Services Administration
(PAGASA), and National Mapping and Resource Information Authority (NAMRIA)
for scientific studies, integrated surveys, mapping, charting, and decision support
systems;

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

(h) The Department shall coordinate with the Philippine Reclamation Authority and
‘economic zone authorities on water resources development and water requirements
within reclamation arcas and economic zones, respectively: and

(i) The Department shall coordinate with relevant government agencies, including local
government units (LGUs), with respect to development projects and shall ensure
cross-cutting collaboration between and among all water sub-sectors and facilitate
inter-agency sub-sector coordination, strategic development, planning, monitoring and
provision of technical, institutional and financial capacity building support to their
different stakeholders at the water sub-sector level.

SEC. 16. National Water Sector Policy Board, - The National Water Sector Policy
Board (NWSPB) shall be created and shall be headed by the Secretary of the Department of
Water Resources with the Secretary of the National Economic and Development Authority
(NEDA) as the Vice-Chairperson, and the Secretaries of the DOH, DILG, DOE, DA,
Department of Social Welfare and Development (DSWD), DPWH, Department of Budget
and Management (DBM), Office of the President (OP), DENR, and National Commission on
Indigenous Peoples (NCIP) as members. The Department shall provide personnel to serve as
Secretariat to the Board.

28


SEC. 17. Powers and Functions of the National Water Sector Policy Board ~The
NWSPB shall perform policymaking, coordination, integration, supervision, monitoring and
evaluation functions, and shall have the following responsibilities:

(a) Approve the NWRMP which shall serve as a principal guide to water management
efforts in the country and shall be reviewed every five (5)-years interval, or as may be
deemed necessary, in order to ensure its relevance to the times;

(b) Provide overall policy direction and recommend policies on water resources requiring
Presidential decision:

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

(4) Ensure # multi-stakeholder participation in the development, updating, and sharing of
information systems as policy, planning and decision-making tools consistent with
IRM,

SEC.18. Transfer of Rights and Obligations. - The Department shall, by virtue of this
Act, be subrogated to all the rights and assume all the obligations of the government agencies
and units whose powers and functions have been subsumed, absorbed, transferred or attached
to the Department-in accordance with the rules and regulations of the Commission on Audit,
and the Civil Service Commission, and other applicable laws. The transfer of powers and
functions as herein provided shall take effect within six (6) months of the effectivity of this
Act. As such, all affected agencies, offices, units shall continue to function under their
present mandates.

CHAPTER IV
WATER REGULATORY COMMISSION

SEC.19. Water Regulatory Commission, — There is hereby created and established as
an independent, quasi-judicial regulatory body to be known as the Water Regulatory
Commission, hereinafter referred to as the Commission, which shall be organized within one
hundred twenty (120) days after the effectivity of this Act.

The Commission shall be placed under the administrative supervision of the
Department as an attached agency.

The Commission shall have a Board of Commissioners, and shall be vested with
powers and functions, as conferred and set forth hereunder,

SEC. 20. The Regulatory Units. ~ The regulatory units of the Commission shall be
composed of the central regulatory unit and the regional regulatory units,

The economic regulatory units and functions of the MWSS, NWRB, LWUA,
SBMA, PEZA, and TIEZA are hereby transferred to the Commission, and shall collectively
comprise its central regulatory unit for water supply and sanitation services th: provide
services t0 more than one province; and (b) arc owned, operated and/or maintained by
special economic zones and Metro Manila concessionaires.
29



The regional regulatory units shall be established by the Commission in accordance
with this Act and the rules, regulations, guidelines, and standards that the Commission shall
issue.

SEC. 21. Powers and Functions of the Commission, ~ The overall authority and
powers of the Commission shall cover and apply to all service providers, whether private or
public, providing or intending to provide levels Il & IIL water supply, including suppliers to
subdivisions and for other service providers, sewerage, and/or septage treatment and disposal
services for domestic, residential, institutional, industrial or commercial use.

The Commission shall exercise the following powers and functions:

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

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

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

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

(e) Fix and determine proper and adequate rates of depreciation of properties and
equipment used in water supply and sanitation services;

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

(g) Require the submission reports of finances and operations, verified under oaths by
the owner or president and sceretary of the board of the licensee;

(h) Determine and require the monitoring and submission of such data, statistics and
other information from the regulatory units and any or all licensees as may be
necessary for the effective and efficient exercise of its duties, functions, powers
and responsibilities.

(i) Investigate, motu propio or upon a written complaint, any matter concerning the
operation of the service and issues on price manipulation and anti-competitive
behavior,


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

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

(1) Advise, apprise and coordinate with other relevant agencies of the national or
local government on any matter relating to waicr supply and sanitation services;

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

{n) Appoint an interim or temporary management committee upon appeal and after
due hearing, to ensure continuity of service in case a licensee fails to mect
conditions of the license and the concerned Regulatory Unit fails or refuses to
appoint an interim management committee as provided in the following section;

(0) Appoint, hire and maintain adequate staff and personnel, advisers, or consultants,
with suitable qualifications and experience, as necessary:

(p) Exercise original and exclusive jurisdiction over all cases contesting rates, fees,
fines and penalties imposed by the regulatory units in the exercise of their powers,
functions and responsibilities, as provided under this Act, and over all cases
involving disputes between and among participants or stakeholders in the water
supply and sanitation services; and

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

SEC. 22. Powers and Functions of the Regulatory Units. ~The regulatory units of the
Commission shall have the following powers and functions:

(a) Issue licenses authorizing the operation of water supply and sanitation services in
any specified area or areas within the Philippines:

{b} Impose fines, charges and other penalties upon any provider and/or its officers and
stockholders who shall fail or refuse to register or obtain a license prior to
operation or commencement of business, as provided hereunder,

(c) Review, determine, fix, and approve, consistent with the rules, guidelines,
procedures and methodologies which the Commission shall provide, proposed
water and sewerage and septage management tariffs, rates and charges that
licensees may impose upon their consumers;

(d) Appraise and value property and equipment used by licensees in providing water
supply and sanitation services;

at


Enforce technical, financial, and other performance standards sct by the
Commission for licensees or utilities;

(e)

(8) Respond to consumer complaints and ensure the adequate promotion of consumer
interests and investigate mot propio price manipulation and anti-competitive
behavior,

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

(b) Require the review and/or approval of contracts or agreements that may impact
on the tariff and rates of service provision entered into by service providers upon
petition or motu propio where in its determination public interest so dictates;

(3) Require the submission of reports, plans, and other documents that define the
performance targets of the licensces or utilities, and regular accomplishment

reports;

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

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

(1) Amend, modify, suspend, or revoke any license issued by them, after due notice
and bearing, on any of the following grounds:

(1) when the facts and circumstances on the strength of which the license was
issued have been materially misrepresented or have materially changed:

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

(3) where the licensee is found to be manifestly inefficient in the operation of or
provision of water supply and sanitation services in its area; or

(4) when the licensee thereof has violated or willfully refused to comply with any
order, rule or regulation of the Commission or any provision of this Act;

(m) Appoint an interim management committee to ensure continuity of service in case
@ licensce fails to meet the conditions of the license; and

(x) Submit performance plans and reports as required by the Commission.


SEC, 23. Composition of the Water Regulatory Commission. —

{a) The Commission shall be a collegial body composed of five (5) full-time members
consisting of a Chairperson and four (4) members, who shall all be appointed by the
President of the Philippines. All members of the Commission must be citizens and
residents of the Philippines, at least thirty five (35) years of age, and of good moral
character, of recognized integrity and competence in the field of law, business,
commerce, finance, accounting or public administration, water or utility economics,
management, physical or engineering services, hydrology and other related services,
with at least three (3) years of actual and distinguished experience in their respective
fields of expertise: Provided, That out of the four (4) members of the Commission,
at least one (1) shall be a member of the Philippine Bar with at least ten (10) years of
experience in the active practice of law, and at least one (1) shall be a certified public
accountant with at least ten (10) years of experience in active practice.

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

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

(@) The Chairperson of the Commission shall exercise general executive control and
supervision over the Commission and its members, staff and personnel, agents and
representatives. Within three (3) months from the creation of the Commission and
the appointment of all Members of the Commission, the Chairperson shall
determine and establish the organizational structure and pilantiffa positions
necessary to carry out the powers and functions of the Commission, including those
of the central and provincial regulatory units subject to the review and approval of
the DBM.

The plantilla positions of the Commission shall be filled by regular appointments in
accordance with Civil Service laws, rules, and regulations. Members of the
Commission shall enjoy security of tenure and shall not be suspended or removed
from office except for just cause as specified by law.

33


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

SEC. 24, Secretariat of the Commission. — The Commission shall establish a
Sceretariat which shall provide the Commission with technical and support services including
the following:

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

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

(c)Monitor and assess activities of the Regulatory Units vis-a-vis their respective annual
performance plans and targets;

(d)Maintain a database on the water supply and sanitation sub-sector; and

(e)Coordinate with other relevant agencies of the national or local government on any
‘matter relating to water supply and sanitation,

SEC. 25. Executive Director. ~ The Commission shall appoint an Executive Director
who shall head the Commission Secretariat, keep and maintain the official records of the
Commission, render a report on the proceedings of the Commission, and administer oaths in
all matters falling within the jurisdiction of the Commission,

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

SEC. 26. Compensation and Other Emoluments, — The compensation of the members
of the Commission and its staff shall conform to provisions of Republic Act No. 6758 as
amended, otherwise known as the Compensation and Position Classification Act of 1989.

CHAPTER V
REGISTRATION AND LICENSING

SEC. 27, Registration and Licensing of All Water Supply and Sanitation Services. ~
All water supply and sanitation service providers, including bulk water suppliers and those
providing services to subdivisions and other service providers, shall register with the
Commission and, subject to such mules, guidclines, procedures and other issuances of the
Commission, obtain a license to operate from the appropriate regulatory units.

34


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

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

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

SEC 28. Conditions of License. ~The Commission o the concemed regulatory unit,
may impose such conditions on the licensee as it may deem necessary, such as:

(a) Tariffs, rates and charges that may be imposed from its customers or consumers;
(b) Tenn fixing the duration of the privilege:

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

(@) Minimam technical performance and service level standards;

(c) Expansion targets and service level improvements over time;

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

(g) Reportorial requirements and obligations of the grantee; and

(h) Submission to annual performance audit by the Commission or its duly authorized
representative(s).

‘The Commission shall specify the requirements and procedure for existing holders of
A Certificate of Public Convenience (CPC), Certificates~of Public Convenience and
Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by LWUA,
to convert their existing certificates into licenses to operate in accordance with Sec. 27 herein.

All existing providers of water supply and sanitation services without a legal and
valid Cerificate of Public Convenience, Certificate of Public Convenience and Necessity, ot
Certificate of Conformance shall register with the Commission and apply for a license within
six (6) months from the effectivity of this Act.

35


SEC. 29. Rights and Duties of Licensees, —

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

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

(2) Ensure that their water supply and sanitation services are provided in a diligent,
conscientious and workmanlike manner, in accordance with applicable laws
niles and regulations issued by the Commission and the gencrally accepted
standards and practices of the water supply and sanitation industry; and

(3) Comply with drinking water quality requirements and standards that may be
established by the Commission,

(b) Any person granted a license under this Act shall, to the extent allowed by law and
specified in the license, has the right to acquire or lease land, lay or repair water or
sanitation main lines and other relevant facilities in public ways to fulfill the terms
and conditions under the license;

(c)Subject to any condition or limitation laid down in the license, a licensce may
discontinue water supply and sanitation services to a customer if such customer
defaults in the payment of fees due to the licensee for the water supplied or sanitation
services provided, or for acts of pilferage pursuant to Sections &, 9, 10, and 11 of
Republic Act No. 8041, otherwise known as the “Water Crisis Act of 1995,"

(d) Any license issued under this Act shall contain provisions designed to ensure that
licensees:

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

(2) Prepare, within three (3) months from the issuance of a license, in consultation
with its customers, a Customer Service Code specifying the manner and procedure
for: (a) metering, billing, and collection of the licensee's approved tariff and other
charges, (b) disconnection or suspension of service in case of non-payment of
tariffs and/or other charges, or acts of pilferage, and (c) recommendation and
recovery of arrears in tariffs and other charges:

(3) Maintain financial accounts in accordance with the manner and procedure
specified in the license and as may be required by the Commission; and

(4) Maintain and upon request by anyone during regular office hours, promptly make

available for scrutiny and inspection such data, statistics and other information, as
may be required by the Commission,

36


SEC. 30, Setting Tariffs, Rates, and Other Charges. Regulatory units shall establish
tariffs, rates and other charges which arc fair and reasonable, and ensure economic viability
and a fair return on investments.

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

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

(b) Efficiency of the service;

(c) Incentives for enhancement of efficiency;

(d) Willingness to pay of the customers/consumers;
() Equity considerations; and

(f) Administrative simplicity.

Tariffs, rates, and charges sct by the regulatory units shall be presumed valid and
reasonable unless a protest or contest is filed with the Commission.

SEC.3!, Direct Access. - Fifty-one (51) percent of the registered water consumers in a
municipality, city or province may petition for direct access to water from any water service
provider subject to concurrence by the service provider and approval by the Commission, The
Commission shail promulgate rules and procedures for this mode of service.

SEC. 32. Innovative Schemes to Improve Efficiency and Management of Systems. ~
The Commission shall promote innovative schemes such as the consolidation or integration
of water supply and sanitation services, or providers in the same service area, where it shall
result in improved efficiency, service expansion and lower-costs.

To this end, the Commission shall establish and issue such rules and guidelines as
may be necessary to (a) create incentives to encourage efficiency and service expansion; (b)
establish the standards and targets that service providers are required to meet; and (c) define
the fines and penalties that shall be imposed for failure to mect such standards and targets.

CHAPTER VI
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION

SEC. 33. Proceedings Before the Commission. — For the purpose of any investigation,
inquiry or proceeding, the Commission shail:

(a) Issue shpoena duces tecum and subpoena ad testificandum;

(b) Appoint hearing officers to hear and receive evidence on behalf of the
‘Commission; and

(c) Cite any person or party for contempt for refusal to appear, testify, or comply
7


with an order of the Commission on any matter that is the subject of
investigation, inquiry or proceeding before the Commission,
SEC. 34. Orders and Decisions of the Commission. ~ Any order, resolution, or
decisions of the Commission shall be promulgated promptly, expeditiously, reasonably, and
in writing, and shall state clearly and distinctly the facts and law on which itis based.

The Commission shall publish and make available for public inspection, all decisions
and final orders in the adjudication of contested cases or applications,

SEC, 35. Appeals Procedure and Prohibition Against Injunction, —

(a) The orders, rulings, and decisions of the Commission are final and executory
unless appealed to the Court of Appeals within fifteen (15) days from receipt of
notice of such order, ruling of decision: Provided, That orders, rulings, and
decisions of the Commission approving tariffs, shall be immediately executory
and may be suspended only upon appeal and filing of a bond, in an amount to be
fixed by the Commission, to answer for damages occasioned by the suspension or
stay of execution of such orders, rulings, and decisions.

(b) No injunction may be issued by any court or administrative agency to restrain any
proceeding before, or the implementation or exccution of any order, ruling, or
decision of the Commission, except on the basis of a question of law brought
before the Supreme Court on certiorari.

(c) Any act or decision of the Commission shall not be invalidated merely because of
a defect or irregularity in, or in connection with, the appointment or vacancy in the
Office of the Chairperson or any other member of the Commission.

CHAPTER VII
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

SEC. 36, Interface with Other Sector Regulators. ~

(a) The DENR shall continue to exereise primary jurisdiction over programs aimed at
protecting the environment and the quality of water sources from waste and
pollution, and shall promulgate rules, regulations, and standards in this regard.
‘The Department of Health (DOH) shall continue to exercise primary jurisdiction
‘over the determination and enforcement of standards for quality drinking water
and sanitation.

(b) The Commission shall coordinate with the:

(1) DOH to ensure that the standards and targets for quality drinking water and
sanitation are consistently complied with;

(2) LGUs for development projects relating to water supply and sanitation; and

(3) Department of Public Works and Highways for flood control and hamessing
and impounding of water.
38


SEC. 37. Transfer of Rights and Obligations. ~ The Commission shall, by virtue of
this Act, be subrogated to all the rights, and assume all the obligations, of the Water Utilities
Division of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of
all special economic zones, and alf other government agencies and units whose powers and
functions have been transferred to the Commission.

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

All agencies transferred, subsumed and attached to the Department, shall continue to
function under their present mandates until the six-month transition period mandated under
this Act shall have lapsed, The heads of the affected agencies shall continue to serve until
replaced.

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

SEC. 38. Absorption or Separation from Service of Emplovees of the Subrogated
Agencies. — The current employees of the Water Utilities Division of the NWRB, the
regulatory offices of MWSS and LWUA, the regulatory units of all special economic zones,
and all other government agencies and units whose powers and functions have been
transferred to the Commission shall enjoy security of tenure, and shall be absorbed by the
Department, in accordance with their staffing pattem and the selection process as prescribed
under Republic Act No. 6656 or the Government Reorganization Law.

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

SEC. 39, Water Trust Fund. ~ There is hereby created a Water Trust Fund in the
Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees,
registration fees, supervision and regulation enforcement fees, filing fees, testing fees, and
other service income from the use of water resources shall be remitted to the Water Trust
Fund. The trust fund shall be accounted separately from the government’s general revenues
and shall be automatically appropriated to the Department, Proceeds from the trust fund shall
be utilized for water development, water sanitation and waste water treatment and
management, and water sustainability programs and projects authorized under this Act:
Provided, That a maximum of ten percent (10%) of the total income generated from raw
water extraction shall be given as share of the concemed local government unit or indigenous
peoples (IP) community who own the specific areas or land where the raw water was sourced.



CHAPTER VIII
FINAL PROVISIONS,

See. 40. Applicability of Ease of Doing Business Law. — The prescribed processing
time provided under Section 9.b of Republic Act No. 11032, otherwise known as the Ease of
Doing Business and Efficient Government Service Delivery Act of 2018, shall be applicable to
all agencies and LGUs covered under this Act particularly on accessing government services.

See. 41. Transitory Provisions, ~ Performance audit of all water-related agencies and
institutions, including LWUA and water districts, MWSS, MWSS-RO and its
coneessionaires, LGU-nun utilities, Tourism Infrastructure and Enterprise Zone Authority,
Philippine Economic Zone Authority, Bases Conversion and Development Authority, Subic
Bay Metropolitan Authority, DILG, and NIA, shall be conducted by the Department,

SEC. 42. Appropriations ~The amount necessary to cover the initial implementation
of this Act shall be charged against the current year’s appropriations of the agencies and
offices transferred and subsumed by the Department and the Commission in the General
Appropriations Act. Thereafter, such sums as may be necessary for the continued
implementation of the Act shall be included in the annual GAA.

SEC. 43. Implementing Rules and Regulations. — Within one hundred eighty (180)
days from the effectivity of this Act, the Department, NEDA, DBM. DENR. CSC, in
consultation with concerned government agencies, the Presidential Legislative Liaison Office
shall promulgate rules and regulations for the effective implementation of this Act

SEC. 44. Sepurability Clause. — If any reason, any portion or provision of this Act
shail be held unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect.

SEC. 45. Repealing Clause. ~ (a) The following provisions are hereby repealed:

1) Section 3 (h) and Section 12 on the provision with respect to fixing of water rates
and sanitation service fees, Section 3 (n) on the provision with respect to regulation of
waterworks and deep wells, and Section 3 (p) on the provision with respect to regulation of
waterworks and sanitation systems in privately owned subdivisions of Republic Act 6234
entitled, An Act Creating The Metropolitan Waterworks And Sewerage System And
Dissolving The National Waterworks And Sewerage Authority, And For Other Purposes, as
amended.

2) Title Il on Local Water Utilities Administration Law of Presidential Decree No
198 otherwise known as the Provincial Water Utilities Act of 1973, as amended by Letter of
Instruction No. 700 Providing Measures To Control And Regulate Increase In Water Rates,
Letter of Instruction No. 744 - Relative To Reliable Water Supply At Reasonable Rates In The
Countryside on the, Executive Order No. 124, 30 January 1987 - Reorganization Act of the
Ministry of Public Works and Highways, Executive Order No, 123, 30 January 1987 -
Reorganization Act of Ministry of Social Services and Development.

3) Republic Act No. 3601 as amended by Presidential Decree No. 552 and
Presidential Decree No. 1702 pertaining to the creation of the National Irrigation
Administration;

4


4) Section | of Executive Order No. 124-A S. 1987 Amending Executive Order No.
124, dated 30 January 1987, Reorganizing the Department of Public Warks and Highways,
Redefining lis Powers and Functions, and For Other Purposes on renaming and reorganizing
the National Water Resources Council into the National Water Resources Board,

(b) The following provisions are hereby amended accordingly:

1) Section 3 paragraph 3 Commonwealth Act No. 146, as amended, otherwise kaown
as the Public Service Act pertaining to all cases involving the fixing of rates:

2) Section 154, Article V, Chapter 1, Title One, Book I] of Republic Act No. 7160, as
amended, otherwise known as the “Local Government Code of 1991”, and its implementing
rules and regulations on the power of the local government units to fix the rates of water
utilities owned, operated and maintained by them within their jurisdiction is hereby repealed
or modified accordingly;

3) Section 13 (b) on the regulation of enterprises within the Economic Zone under
Republic Act No. 7916 as amended, otherwise known as “The Special Economic Zone Act of
1995”;

4) Section 69 of Republic Act No. 9593 otherwise known as “The Tourism Act of
2009” and its implementing rules and regulations which mandate the Tourism Infrastructure
and Enterprise Zone Authority to grant franchises, supervise the operation of public utilities,
and register, monitor and regulate enterprises within Tourism Enterprise Zones, are hereby
repealed or modified accordingly;

5) Sections 7 and 8 on the adjudication of water pollution cases under Republic Act
No, 393 entitled, An det Creating The National Water And Air Pollution Control
Commission, particularly with respect to Section 6 letters e, f, 2, j, k Presidential Decree 984
entitled, Providing for the Revision of Republic Act No. 3931, Commonly Known as the
Pollution Control Lav; and For Other Purposes:

6) Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the “Philippine
Clean Water Act of 2004”;

7) Articles 3(d) and 79 of Presidential Decree No. 1067, otherwise known as The
Water Code of the Philippines;

8) Sections 9, 10, 11, 12 and 13, Chapter I! of Presidential Decree No. 856, otherwise
known as the “Code on Sanitation of the Philippines”: and

9) Section 3.2 (b) of Executive Order No. 149 Series of 1993 transferring the Laguna
Lake Development Authority from the Office of the President to the Department of
Environment and Natural Resources.

All other laws, presidential decrees, executive orders, presidential proclamations,

rules and regulations, or parts thereof which are inconsistent with the provisions of this Act
are hereby repealed or amended accordingly.

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SEC. 46, Effectivity, — This Act shall take effect fiftcen (15) days after its publication
in the Official Gazeite or in a newspaper of general circulation.
Approved,