Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. 3788

Introduced by Honorable Florida P. Robes

EXPLANATORY NO’

Water scarcity is a global problem that afflicts both developing and developed countries
In 2022, more than 2.3 billion people, out of 7.5 billion people worldwide, face water stress be it
caused by poor access to adequate water both in terms of quantity and quality, severe and
prolonged droughts, inadequate water supply inftasiructure, or water-related hazards such as
flooding and landslides,

In a bid to ensure water sustainability and sufficiency across regions, Robert Borje, Climate
Change Commission Secretary of the Philippines, called attention to water scarcity as "one of the
future global climate risks" at the recent plenary session of the 2nd Dushanbe Water Process
Conference in Tajikistan held last June 2022, and urged regional and global action to formulate
and implement water development strategies,

‘The United Nations Convention to Combat Desertification (UNCCD) also released a
report, “Drought in Numbers, 2022", on May 12, 2022 at the 15th Conference of Panties (COPIS,
9-20 May in Abidjan, Céte d'Ivoire) which highlighted the fact that although droughts represent
only 15% of natural disasters, they take the largest human toll, with approximately 650,000 deaths
from 1970-2019. Also emphasized in the report was that from 1970 to 2019, weather, climate and
water hazards accounted for 50% of disasters and 45% of disaster-related deaths, mostly in
developing countries causing major economic losses locally, with a ripple effect to the global
economy.

Water security remains a significant challenge for most netions and the Philippines is not
an exception Inadequate and intermittent water supply afflicts not only rural areas and low-income
urban cities but also even the foremost urban center, Metro Manilx. Only just recently, in the
summer of 2019, Metro Manila experienced the worst water crisis it has ever had in a decade.’
Currently, there is a growing demand for water fom domestic and industrial sectors, especially

\Calonzo, Androa & Yap, Caclin. "The Worst Water Crisis in Nearly a Decade Hits Marila, Here's Why,” March 10,
2019, Retrieved from: hitpsi// vauw_blooe berg. com/news/articles/2019-02-16/warst water-ctisis-in-decade-hits-
Philippine-capitalhere-s-why, retrieved on August 18, 2022.



the agriculture sector which aims to produce much more food for our growing population. This
translates inte a compedition for already diminishing water resources

There is the problem of the lack of water, and there is also the problem of excess
undrinksble untreated water, such as that brought about by flooding and other water hazards
exacerbated by climate change that is also prevalent in the region

‘Torrential sains caused severe flooding in South Korea recently. Exirome rainfall brought
‘on by Tropical Storm Mulan caused flooding and landslides in areas of Vietnam, northern Thailand
and bordering areas of Myanmar, and northern Laos resulting in human casualties" just this month
of August, 2022. In the Philippines, flash floods are becoming a regular occurrence during the
rainy season, often bringing traffic in the metropolis to a halt

According to the WMO Atlas of Mortality and Economic Losses from Weather, Climate
and Water Extremes (1970-2019), floods are one of the hazards that led to the the largest human
osses during the period, causing 58,700 deaths. The economic losses brought on by flocds are
likewise astronomical, often running into billions of dollars, or in our case, pesos

At the moment, no country, developing or otherwise, is immune to this phenomenon
Solving either water scarcity or water hazards will require the country to be prepared,

‘This bill creates the Department of Water Services which shall serve as the foremost agency
tasked with management of all the water resources in the country, including formulating a national
policy concerning the same. The Department shall work and liaise with the different agencies,
hodies and institutions towards the execution and implementation of said policy for a coordinated
effort.

This is in line with the Philippine Development Plan for 2017-2022 which mandates the
formulation of master plans as regards water supply, sewerage, and sanitation, and highlights the
necessity of addressing the current fragmented stricture of water resources management in the
country,

‘As such, the Department shall exercise administrative supervision over attached agencies
such as the Local Water Usilities Admini (LWUA), the Metropolitan Waterworks and
Sewerauc Systems (MWSS), the National Irrigation Administration (NIA), and the Laguna Lake
Development Authority (LLDA), and several offices shall be subsumed under the Department,

Several bureaus shall also be created under the Department, such as, the Bureau of Flood
Control and Drainage, the Bureau of Water Quality Management, and Water Resources Regional
Offices (WRROs) to ensure implementation of the Department's mandate in their respective
jurisdictions.

This bill likewise creates a Water Pollution Adjudication Board for the adjudication of
water pollution cases and a National Water Sector Policy Board which not only shall approve the
Esters Mulan: Triggers Floods Leaving 5 Deac and 4 Missing: https://food!ist.com/asia/vietnam-thailandlaos-
mmyanmar floods-mulan-sugust-2022, accessed on August 16, 2022.


National Water Resources Management Plan (NWRMP), but shall also advice the President on the
status of water management and supply and recommend to the President declarations of state of
calamity in areas affected by water supply, aside from ensuring multi-stakeholder participation
consistent with the Integrated Water Resource Management ([WRM) framework.

This bill also creates the Water Regulatory Commission (WRC) whose foremost task is to
protect consumer welfare and curb abusive practices in the water industry. The WRC shall ensure:
1) access to water, including effective and adequate delivery thercof; 2) that wastewater treatment
programs exist; 3) that septage management services are available, 4) adequate water supply level
of service; and 5) above average quality of service which shell include round-the-clock water
supply, adequate pressure, and quality of potable drinking water

‘The creation of the WRC addresses the issue of unregulated tariffs set by water utilities,
inefficient operations by service providers, and the lack of motivation of water utilities to expand
their coverage and scape of service or even improve their quality of service. Wheve before, there
were several agencies doing economic regulation of water utilities, such as the LWUA, MWSS,
LGUs, NWRB, TIEZA, the WRC puts under one umbrella this fragmentation for a more holistic
approech and concerted effort to achieve our water security goals.

‘This bill also creates the Water Trust Fund in the Bureau of Treasury where service income
from the use of water resources shall be remitted. The Trust Fund shall be accounted separately
from the government's general revenues and shall be automatically appropriated to the Department,
The Trust Fund proceeds shall be utilized for water development, water sanitation and wastewater
treatment and management, and water sustainability programs and progects,

All told, this bill is a major-step towards a more resilient and water-secure Philippines.

In view of the foregoing, immediate passage of this bill is earsestly requested,

FLORIDX P. ROBES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House wilt No.“ °* 3788

Introduced by Honorable Florida P. Robes

AN ACT CREATING THE DEPARTMENT OF WATER RESOURCES AND THE
WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, POWERS
AND FUNCTIONS, AND APPROPRIATING FUNDS THEREFOR

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

Section 1. Short Title. — This Act shall be known as the "National Water Act"

Section 2. Declaration of Policy. — \tis 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 international best practices
to address the challenges of climate change. Further, all water and water treatment infrastructure
projects are hereby declared as projects imbued with national interest,

Section 3. Definition of Terms, — Asused in this Act

(a) Buik water suppher refers to any entity, natwral 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 companies, or for retail distribution
to consumers such as water service providers or real estate developers managing their own
distribution network,


(b) Environmental services refer to qualitative functions of natural non-produced assets of
land, 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 hurman beings

(€} Flooel Coniro! refers to methods, acts, and protocols to be observed to prevent and reduce
the detrimental and catastrophic effects of flood waters which include sedimeat-laden or
turbid flows, and hyper-concentrated flows or debris flows,

(d) Flood Risk Management (PRM) refers to such acts of defining and determining the
appropriate methods, acts, and protocols simed at preventing and reducing the risk of
incurnng loss of both life and property due to flood waters. Flood risk management consists
of a cycle of prevention, mitigation, adaptation, preparedness and early warning, and
response and recovery. ‘The elements of FRM include. integrating land-use planning and
coastal 20Ne management into water management, adopting a holistic approach so that
FRM is part of wider tisk or multi-hazard management of earthquakes, landslides, and
storm surges; managing risk and uncertainty as a whole so it not only mitigates
hydrological uncertainties but also social, economic and political uncertainties on account
of human behavior and the cultural dimensions of FRM.

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

(9) Infrastructnre 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 Department of Water Resources created under this Act

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

(hh) Levels of water supply refer 10 communal sources of water described according to location
and size of the recipient human settlement as follows.

1. Level 1 or the point source is a protected well or a developed spring with an outlet
but without any distribution system, generally adaptable 10 rural and upland areas
where -houses are thinly scattered and ie a facility which usually serves an average
of 15 households.


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

3. Level IIT or the waterworks system or individual house connections is a system with
a water source, @ reservoir, & 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 Water Services refer to water supply of services to areas that have no existing
safe water supply and services due to geographic limitation or absence of economic 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 IWRM framework The NWRMP shall also
include a water infrastructure development program or 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

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

{t) 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 hasin refers to an area of land drained by a stream o body of fixed water and its
tributaries which have a common outlet for surface run-off.

{p) River Basin Organization (RRO) refers to multi-stakeholder organizations which plan,
coordinate, and monitor activities within a river basin cluster

(@ Sanitation refers to the provision of facilities and services for the safe management of
human excreta, from toilet to containment, and storage and veatment onsite or conveyance,



treatment and eventual safe end use or disposal, and includes the safe management of solid
waste and animal waste.

(2) Sediment management refers 10 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 (SPGs) 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.

(®) 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,

(v) Service Area refers to the urea 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 If & IMT water supply. including bulle water
suppliers, sewerage, septage treatment, and disposal services for domestic, residential,
industrial, or commercial use.

(x) Sewage refers 10 water borne human or animal wastes, excluding oil of oi! waste, removed
from residences, buildings, institutions, and industrial and commercial establishments
together with such groundwater. 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.

()) Sewerage refers to any system or network of pipelines, ditches, channels or conduits
inchading 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
catty, transpon, and dispose sewage

(2a) Social inclusion refers to the process of improving the terms for disadvantaged
individuals and groups to take part in society

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


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

Reduce the quantity or quality of water required to accomplish # specific task,

adjust the nature of the task or the way it is undertaken so that it can be

accomplished with less water or with lower quality water,

3. Reduce the loss in quantity or quality of water as it flows from source, through use,
10 disposal;

_. Shift the timing of use from peak to off-peak periods, and

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

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

(ec) Water pollution sefers xo any alteration of the physical, chemical, diclogical, or
radiological properties of « 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-offs, floods, stormwater and urban drainage, treated wastewater,
water in the atmosphere or rainwater, and the waters of the sea within the territorial
jurisdiction of the Philippines.

(gx) Water Resources Regtons refer to the contiguous clusters of river basins which are
‘grouped together according, to the hydrological boundaries, physiographic features, and
homogeneity in climate, whether or not they straddie different locel government units, for
administrative purposes under the Department of Water Resources

(hh) Water Service Provider (WSP) refers 10 the water district, any Local Goverament 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.

Gi) Water supply service refers to any activity comprising Levels 1, Uf and OI water supply
ineluding bulk suppliers, suppliers to subdivisions, and other water scrvice providers

CHAPTER I
THE DEPARTMENT OF WATER RESOURCES

Section 4. The Department of Water Resources. — There is hereby created and
established the Department of Water Resources, hereinafter referred to as the Department


Section 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
eosuse the optimal use thereof for domestic and municipal water supply, sanitation, irrigation,
hydropower, industry, navigation, flood management, and recreation except fisheries or
aquaculture

The Departmnent stall 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 Filiginos.

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

The Department shail exercise the powcrs 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
to 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 harness 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 easements provided for in the Civil Code and other relevant

Jaws are enforced, especially in all the esteros and waterways that drain into

the Pasig River as well as abate the dumping of untreated industrial wastewater

and sewerage into the river, including all acts and omissioas in violation of

Presidential Decree (PD) No. 984, s. 1976, as amended entitled, Providing For

The Reviston Of Republic Act No, 3931, Commonly Known As the Pollution

Control Law, And For Other Purposes, PD No, 274, s, 1973 entitled.

Pertatsing To The Preservation, Beautification, Improvement And Ganfut

Utilization Of The Pasig River, Providing For The Regulation And Control Of

Pollution Of The River And Its Banks In Order To Enhance lis Development,

Thereby Maximizing lis Utilization For Socio-Economic Purposes, and other

related laws.

Section 6. Guiding Principles. — tn the pursuit of its mandate, the Department shall be
guided by the following key principles:

(2) The concept of good water governance for water security and sufficiency shall be adopted
across al] levels of governance by stakeholders such as the national government, local
goverment, non- government organizations, private organizations, individuals, even
global societal actors, and in various sectors such as water supply, irrigation, fisheries,


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hydropower, navigation, ecosystem scrvices, flood management, climate change, and
recreation. [t shall entail publicly transparent, socially accountable, and multistakeholder
participatory water policy planning, management, and decision-making processes.

‘Access to safe water supply and improved senitation is a human right that needs to be
fulfilled and protected,

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 IWRM 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 (TEC) programs, assessment and allocation tools, or regulatory functions.
Tt shall observe the mutual accountability mechanism among stakeholders at the national,
regional, and global levels reinforcing multi-stakeholder decision-making following 4
framework with specific, measurable, attainable, relevant, and timely actions,

Bach 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

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 warning systems that are essential for an effective, efficient, and sustainable
water resources management system.

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

‘Water resources and services should be provided where they are intended and most needed
so that water is fairly and sustainably managed.

The proper operation and maintenance of waterworks systems resulting in the
uninterrupted and adequste 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.

Section 7. Objectives of the Department. — The Deparment shall

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

Prioritize and sock the immediate attainment of universal access to safe, adequate,
affordable and sustainable water supply and improved sanitation services for all Filipinos
in a manncr consistent with the protection, preservation, and revival of the quality of the



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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

Strengthen and coordinate integrated water resources management planning and policy
making to ensure sustainable and fair allocation and efficient use of water resources among
competing uses and users,

Ensure that integrated water resources management is strongly coordinated with land use
and coastal and multi-hazard planning and management,

Develop sustainably, and manage water sources and water resources toward water security,
taking into consideration water, land, and related resources aimed al 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 flocd and other water induced hazards including
sediment hazards,

Ensure that the stratepy for water resources development and conservation is participatory,
and that planners, policymakers and users including community members are involved at
all levels,

Develop a standardized pricing framework for water use those accounts for environmental
externalities; and

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

Section 8. Powers and Functions of the Department. — The Department shall have the

following powers and functions:

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Policymaking and Planning

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

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,


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among other guidelines, integcate the issues of water and sanitstion, food security, energy,
environment and flood control, and climate change,

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

Regularly update, every five years or as deemed necessary by the Department, and in
consultation with other agencies and stakeholders, the NWRMP following the IWRM
frameworic and integrate therein « national land use plan,

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

Conduct continuing hydrological an hydrometeorological surveys and studies of the
country's renewable water supply, and establish, operate, and maintain cbservation station
networks with a view towards formulating long-term poticies 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,

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 ageinst, prevent, and minimize the detrimental and
catastrophic effects of flooding,

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
progrants,

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

Ensure that 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,


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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;

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,

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,

Ensure the effective implementation of all the provisions of Republic Act No. 9275,
Presidential Decree No. 1067, and Sections 9, 10, 12, 12.& 15, Chapter Il of Presidential
Decree No, 856, otherwise known as the Code on Sanitation of the Philippines;

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

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

Resource Regulation

Manage and conserve the country's water resources to ensure the optimal use thereof for
domestic water supply, sanitation, itrigation, 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;

Regulate and control 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,

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 end 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:


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

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

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

b. Raw water price, which shall take into account, among others, the scarcity of waver,
and

c. Appropriate payment structures for environmental services:

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

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,

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 ennuel renewable water available per water
resources region,

Maintain a database that will contain updated relevant information on water data which
vill be accessible by relevant and authorized users,

Develop and continuously update a computerized decision support system that incorporates
Gata managemeat systems relating to acquisition and database, model base in terms of
physical design, planning and decision models, and user-friendly interface concerning
praphical and visualization tools,

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

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

Institutional Arrangement with Public Water Organizations

Develop guidelines including rules of partnership, between and among the Department,
field offices of national govemment agencies, LGUs and other siakeholders in water


(b)
()

(d)

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(a)

(b)

(o}

(9)

resource management, and facilitate the establishment of multi-stakeholder river basin
organizations (RBOs) per river basin, and strengthen and support existing RBOs and
monitor their activities,

Develop materials for capacity building and training of prospective RBOs,

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 and
investigations, including assessing and evalueting the conditions of water facilities
installed, and determining compliance with water lews and standards,

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;

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

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

Appoint. hire, and maintain adequate staff and personnel, advisers or consultants with
suitable c,lualifications and experience, as necessary, subject to existing rules and
regulations.

Coordination

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

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 snd 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,

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

Coordinate proactively with LGUs to cnsure 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).


fa)

(b)

©

Other Functions

Create, when necessary, water resource subsidiaries, instrumenialities, and entities 10
engage in water transmis |, water distribution, waste water treatment and management,
and sanitation in accordance with existing relevant laws.

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

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

Section. 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:

@

{b)

(

@
e)

(hy
6)

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,

Esteblish the policies and standards for the operation of the Department pursuant to the
President's guidelines,

Promulgate rules and regulations necessary 10 carry out the objectives, policies, and
functions of the Department,

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

Delegate authority for the performance of any power or function, as defined herein t0
officials and employees under his direction as deemed appropriate,

Actas the Chairperson of the governing board of the attached agencies of the Department,
Designate and appoint officers and employees of the Department, excluding the
Undersceretarics, Assistant Secretaries, and Regional and Assistant Regional Directors, in
accordance with the civil service laws, rules and regulations; and

Perform suich other duties and responsibilities as may be provided by law.



Section 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.

Section 11. Undersecretaries. — The Secretary shal] 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 Agriculuire, Undersecretary for Resource Development,
Undersecretary for Planning and Policy and Undersecretary for Missionary Water, Indigenous
People, and Special Conccins,

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 administrative
responsibilities Within their respective functional areas 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

(©) 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 sustsinable management of water resources under the SDGs,
and the integration of water, energy, environment and food security.

Section 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, Compirollership and Financial Management Service, Legal and Legistative
Service, and Administrative and Human Resources Management Service.

No person shall be appoimed 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 water resource management: Provided, That at
least one (1) of the Undersecretaries and at least two (2) of the Assistant Secretaries shall be carcer
officers

Section 13, Orgunizational Structure. — The Department shall be composed of the
following organizational units


(a) Deparment 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, as amended, shall be transferred ftom the Department of
Public Works and Highways and attached to the Depariment. It shall continue to
primarily function as a specialized lending institution for the promotion, development,
and financing of local water utilities, In the implementation of its functions, de LWUA
shall:

i. prescribe minimum standards and regulations in order to assure acceptable
standards of construction materials and supplies, maintenance, operation,
personne] training, accounting and fiscal practices for local water utilities,

ii 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 Ses. 22,
Presidential Decree No, 768.

2) The Metropolitan Waterworks and Sewerage System (MIWSS), whose mandate,
powers, and functions are defined under Republic Act No. $234, as amended entitled,
An Act Creating The Metropolitan Waterworks and Sewerage System And Dissolving
‘The National Waterworks And Sewerage Authority, And For Other Purposes, shall be
transferred from the DPWH and attached to the Department: Provided, That the
MWSS shall continue to fecilitate the exercise by the concessionaires of their
responsibility; cary out accounting and notification functions; monitor, report, and
administer loans; perform related flanctions 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 mandste, powers and
functions are defined under Republic Act No. 4850, as amended entitled, An Act


©)

(a)

Creating The Laguna Lake Development Authacity, Preseribing Its Powers, Functions
And Duties, Providing Punds 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 cevelopment authority
similar 10 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 sesources management, conservation and protection functions may be transferred
to the Department as the President deems necessary.

Offices, Funetions and Personnel to be Completely Subsumed nnder the Department, - The

following offices with their powers, functions, personnel, applicable funds and

appropriations, records, equipment and property shall be subsumed under the Department:

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) 201 1-0t 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 Buress of Soils and Water
Management of the Department of Agriculture (DA),

B)

The Water Supply and Sanitation Unit of the Department of the Tnterior and Local
Government (DILG), and

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

Functions to be transferred to the Departmen. - The following functions of the respective
agencies, bureaus, and units shail 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 snd conservation of natura) wetlands such as lakes, marshes, swamps of
the Biodiversity Management Bureau of the DENR;


(eo)

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

4) The flood management planning and sediment management function of the Flood
Control Management Cluster of the DPWH,

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.

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

1) The Planning and Policy Service shall provide the Department with the capability to
undertake water infrastructure development planning and programming, and shail
exercise the following fiunctions.

i

ii.

vi

vii

viii.

xi,

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

Formulate strategies and priorities for water resources management and
development consistent with national development objectives, atid imitate 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

ans,
Coordinate river-basin planning following the integrated water resources
management framework and the nver-basin approach;
Formulate or update existing River Basin Master or Comprehensive Plans
which includes all aspects of water management and development such as water
supply and sanitation, irrigation, flood control and stormwater or urban
drtinage, drought risk management, water resource development systems and
‘other public water works projects, including phasing of implementation;
Identity, based on the river basin master plan, priority packages for water
infrastructure development per river basin, including water supply, sanitation,
irrigation, flood control end 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 medium and Long -term plans;

. Gather, analyze_and organize needed statistical data and information,

Provide technical assistance related to its functions to the other services,
bureaus and the regional offices as needed,
Conduct hydrological and hydraulic surveys and assessments of surface waters,


xii

xiii

xiv

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

Develop guidelines and sianderds on social inclusion in water resources
management and ensure policies, programs and plans are compliant with the
gender and devetopment 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 abovementioned objectives

2) The Decision Support System Service shall provide the Department with water resource
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 end decision models including services related to
networking, data management, and information and knowedge or learning
management systems for administrative and non-technical support It shal! provide the
Secretary timely reports on the status of various Department projects and activities. For
this purpose, it shall exercise the follawing functions:

“

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 suck
as basic statistical analysis, ‘rend 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 mo¢els for design, planning, decision or evaluation
purposes, and 4) a user-friendly interface which includes graphical interface or
visualization tools.

Develop and maintain specific models to include the following.

long-term climatologic and weather forecasting model,

watershed models and river-flood plain models;

groundwater models and coupled to surface water models,

flood forecasting mode! for major rivers,

. optimization-simulation management models for watershed
conservation, conjunctive surface and groundwater use, irrigation

ween


scheduling, normal and emergency operations of ruulti-purpose
reservoirs, and
6. water quality and ecological models.

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

1 Retrieve, process, and monitor information on all projects and activities
in the web portal,

2, Conduct and apply systems and process engineering, software
development, software configuration management,

3. 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,

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

5. 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 Department.

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,

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;

Provide services related t human resource-training, educati 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 coordmate or otherwise interface with
relevant agencies, whether government or private, for the purpose of developing
or upgrading the system;



vi

vii.

viii,

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,

Coordinate with the appropriate government agencies for a more efficient
conduct of administrative processes,

Develop, establish, and maintain an efficient records system,

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

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

4) The Legal and Legislative Research Service shall provide the Department with services
‘on such legal affairs as contract letting and litigation, legal and legislative research,

compl
exerci
i.

vi,

vii

Vili,

ints and investigation, legal counselling and other matters of law, and shall
se the following functions
Advise the Secretary on all matters relating to legat and legislative affairs,

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

Conduct administrative investigation and the review of administrative charges
against officers and employecs of the Department,

Exercise functional jurisdiction over the fegal staffs of Regional Offices,

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

Develop and prepare the Department's Legislative Agenda, recommend
presidential certification of the uryency af 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 co 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
Senggunians,

_ 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 abovementioned objectives.

5) The Compiratlership and Financial Monagemeni Service shall provide the Depenment
with coordinated services relating to financial systems and procedures, budget, cash,
accounting and all financial housekeeping matters, and shall exercise the following

functions

iti.

vi

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 sppropriate 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 speciglization 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

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:

‘Advise the Secretary on all matters relating to resource regulations,

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


vi

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;

Investigate violations of the water rights and the Water Code, and impose
the appropriate sanctions in accordance with existing laws, rules and
regulations as well as future rules and regulations which the Department shall
promulgate:

Adjudicate water use conflicts, and

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

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

iii,

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

Conduct a performance eudit 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, government regulations and contractual
obligations of the Department,

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

iy, Analyze and evaluate management deficiencies and recommend realistic

courses of action; and

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

8) The Public Affairs Service shall enhance relations with all stakeholders including the
media, for the effective dissemination of information relating to water-related issues,
including important announcements on policies and activities of the department that is
of interest to the general public It shall ensure that women, men, elderly, and people
with disabilities shall he consulted, organized and take active partin all aspects of water
resources development and management activities, It shall also lead the planning and
organizing of special events, and shall exercise the following functions:

i

Public Awareness


|. Advise the Secretary on matters pertaining to public affairs,

2. Develog 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,

w

4. Conduct public opinion and attitude surveys to identify the interests and
concerns 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,

6. Establish and maintain linkages with the wi-media and a presence in
social media:

7. Coordinate the conduct of interviews and news conferences;

8 Make public announcements on matters relating to the work and
activities of the Department through the print and broadcast media,
either through press releases of live interviews,

9. Coordinate with various Department units, concerned government
agencies, tri- media and other stakeholders on matters related to the
above-enumerated functions; and

10. Coordinate with the appropriate national government agencies involved
in public information affairs.

ji Promote Participation

1. Conduct public consultations and discussions;

2. Develop and disseminate relevant and appropriate materials and
programs for public information and education, as well as advocacy
campaign:

3. Conduct seminars and workshops involving the LGUs and the general
public on current water issues and problems, and

4. Conduct capability building seminars of various stakeholders to
promote meaningful participation in the Department's policy making,


planning, development and implementation of various programs and
projects

iii, Special Events

1, Coordinate the organization and promotion of special events and water
exhibits;

2, Actas the focal office for all water related events, and

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

Bureaus. ~The Department shall create bureaus 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 shall plan and design flood control and drainage
structures and facilities in accordance with technical standards, guidelines, and
manuals. For this purpose, it shall have the following dutics and responsibilities

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. Jn integrating land use planning
and water management, the Department shall harmonize and synthesize plans
to onable the sharing of information between land-use planning and water
management authorities. In this regard, « holistic approach shall be adopted by
making the IFM a part of a wider risk or multi-hazard management system that
inchides earthquakes, landslides, fires, tsunami, and other calamities of the
same gravity or nature,

ii, Integrate climate change and disaster risk reduction and managementin policies
and plans,

iii, Prepare master plans of flood management and drainage in river basins in
coordination with ihe concerned water resources region and river basin
‘organizations,

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

\. Prepare feasibility stucies of recommended measures in the master plans;

Vi. Plan and design structural measures for flood control and drainage;


vii,

viii

xi.

xii,

xiii,

xiv,

2) Burean of Water Quatity Management shall sspervi

Implement and collaborate with concerned agencies on the formulation and
adoption of non-s:ructural measures for flood control and drainage:

Patrol and investigate rivers, and monitor stream Nows,

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

flood infrastructures after extreme events,

. Conduct rescarch and development on water and sediment-related disasters;

Develop design guidelines, criteria, and standards on flood control and drainage
structures:

Provide technical assistance to other agencies, LGUs, and other stakeholders,

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

Perform such related activities which are necessary for the effective
performance of its functions.

and éxercise control over all

aspects of water quality management (o 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 exercise the following functions:

vi

Establish water quality guidelines for freshwater and coastal or marine waters
as basis for classifying water bodies in the countzy, 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;

Establish efMuent standards for point discharges to receiving bodies of water:
Establish internationally accepted procedures for sampling and analysis;
Prepare an integrated water quality management framework,

Prepare the ten-year waier quality management plans for each water quality
— area as part of the River Basin Master Plans and in support of the

Classify groundwater sources and prepare a national groundwater vulnerability
map;


z

viii

a

xii

xii

xy.

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

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

Collect the wastewater discharge fees for all permittees,

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

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

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

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

Serve as secretariat of the WPAB, and

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

ty of

the Department Each WRRO shall perform the following duties and responsibilities:

iti.

Formulate or update and coordinate the river basin master plans for river basins
‘within ite Jurisdictions ensuring consistency with the National Water Resources

Management Framework Plan,

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

Undertake and evaluate the planning, design, and work supervision functions
of the Department for the water indrastructures within the region,

_ Ensure the implementation of laws, policies, programs, rules and regulations

regarding the abovementioned 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
implemeniation of the river basin master plans,

vii, Conduct consultations with the local communities, take appropriate measures
to ensure that the services of the Department are responsive, and recommend
such appropriate actions as may be necessary, and

viii. Perform such functions and activities, 2s may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives

The Department shall reiain 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 shal! be headed by a Water Resources
Regional Direotor who shail 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 Reyional Director shall be assisted by two (2) Assistant
Water Resources Regional Office Directors who shall exercise supervision over (1) the
planning, project design and evaluation function and (2) technical assistance to the River
Basin Organizations within the water resources region

Section 14. Water Pollution Adjudication Board. — There is hereby crested 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 Contro! Commission, Presidential
Decree 984 emtitled 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, fg 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 fT
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT

Section 15. Interface and Institutional Arrangements with Other Agencies. —

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

(4) The Deparment shal! coordinate with the DA to ensure agricultural development that
reduces long-term pollution fur surface waier and groundwater, and agricultural and
industrial economic development that employs water efficiency, water recycling or reuse,
and the appropriate treatment of wastewater,

(2) 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;

{£) 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 dectsion support systems

(a) 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 areas and economic zones, respectively, and


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

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

Section 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 fotlowing responsibilities:

(2) Approve the NWRMP which shall serve as principal guide to water management efforts
in the country and shall be reviewed every five (S}-years interval, or as may be deemed
necessary, in order to casure 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 areas,

(4) Ensure @ multi-stakeholder participation in the development, updating, and sharing of
information system as policy, planning and decision-making tools consistent with [WRM.

Section 18. Transfer of Rights and Obligations. — The Departmen shall, by virtue of this
‘Act, be subrogated to all the rights andi 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 Jaws. 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 contizue to function under their present mandates

CHAPTER IV
WATER REGULATORY COMMISSION

Section 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 shal! be placed under the administrative supervision of the Department
as an attached agency

‘The Commission shal! have a Board of Commissioners, and shal! be vested with powers
and functions, as conferred and set forth hereunder.

Section 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 regulatary units and functions of the MWSS, NWRB, LWUA, SBMA,
PEZA, and TIBZA are hereby transferred to the Commission, and shall collectively comprise its
central regulatory unit for water supply and sanitation services that’ (a) provide services to more
than one province, and (b) are owned, operated and’ or maintained by special economic zones and
Metro Manila concessionaire.

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

Section 21. Powers and Functions of the Commission. — The overall authority and
powers of the Commission shall cover and apply toall service providers, whether private or public,
providing or intending to provide levels [I & ILI water supply, including suppliers to subdivisions
and 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,

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

(©) Establish rules and regulations to monitor, avoid, and provide remedies for any market
power abuse or anti-competitive or discriminatory act or behavior by or against any
participant in the water supply and sanitation sector. Upen 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 and penalties pursuant to
this Act

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


(e)

(h)

fi)

(k)

0)

(m)

(n)

(0)

(p)

Fix and determine proper and adequate rates of depreciation of properties and equipment
used in water supply and sanitation services,

Impose and collect annual levies determined as 2 percentage of gross revenue accruing in
relation 10 the licensed activities, and reasonable fees and surcharges as may be nacessary
for achieving the purposes, powers and functions of the Commission,

Reguire the submission reports of finances and operations, verified under oaths by the
owner or president and secretary of the board of the licensee;

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;

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

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 recluirement issued by the Commission;

Reguire 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,

Advise, apprise and coordinaie with other relevant agencies of the national or local
government on any matter relating to water supply and sanitation services;

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

Appoint an interim or temporary management committee upon appeal and aller duc
hearing, to ensure continuity of service in case a licensee fails to meet conditions of the
license and the concerned Regulatory Unit fails or refuses to appoint an interim
management commitice as provided in the following, section;

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

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
sesponsibilitics, as provided under this Act, and over all cases involving disputes berween
and among participants or stakeholders in the water supply and sanitation services; and


()

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

Section 22. Power and Functions of the Regulatory Units. — Vie regulatory units of the

Cotnmission shall have the following powers and functions:

@

)

()

(d)

(e)

(g)

(h)

10)

a

(ky

Tssue licenses authorizing the operation of water supply and sanitation services in any
specified area or areas within the Philippines,

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,

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,

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

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

Respond to consumer complaints and ensure the adequate promotion of consumer interests
‘and investigate mom: propio price manipulation and anti-competitive behavior,

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,

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 80 dictates,

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

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

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



ct)

{m)

(n)

@

{b)

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

1) when the facts and circumstances on the strength of which the license was issued have
been materially misrepresented or 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; oF

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,

Appoint an interim management committee to ensure continuity of service in case a
licensee fails to mest the conditions of the license; and

Submit performance plans and reports as required by the Commission,
Section 23. Composition of the Water Regulatory Commission. —

The Commission shall be # collegial body composed of five (5) full-time members
consisting ofa 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 Jeast 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 bea member of the Philippine Bar with atleast ten (10) years of
experience in the active practice of jaw, and at least one (1) shall be a certified public
accountant with at least ten (10) years of experience in active practice,

The term of office of each member of the Commission shall be seven (7) years: Provided,
That amiong the members first appointed, the Chairperson shall serve for a period of seven
(2) 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 furthermore, That any appointment to fill a vacanay in the Commission
arising from death, removal, retirement or resignation shall be made only for the unexpired
term: Provided, finally, That in no case shall any member scrve for more than seven (7)
years in the Commission,



(

(d)

(©)

The Commission shall meet as often as may be necessary on such day or days as the
Chairperson may fix. The presence of at least three (3) members of the Commission shall
constitute a quorum, which shall be necessary for the transaction of any business, The
affirmative vote of majority of the members of the Commission where a quorum is present
shall be necessary for the adoption of any order, resolution, decisions, or other act of the
Commission in the exercise of its quasi-judicial functions: Provided, Thet 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 end
representatives. Within three (3) months from the creation of the Commission and the
appointment of all Merabers of the Commission, the Chairperson shall determine and
establish the organizational structure and plantilfa 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 plannita positions of the Commission shell 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 no: be suspended or removed from office except for
Just cause as specified by law.

The Chairperson and members of the Commission or any of their relatives within the fourth
civil dezrce 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.

Section 24. Secretariat of the Commission, — The Commission shall establish a

Secretariat 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;

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

(4) Maintain 2 database on the water supply and sanitation subsector, and

(©) Coordinate with other relevant agencies of the national or local government on any matter

relating to water supply and sanitation,


Section 28, 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 he cesponsible 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.

Section 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, es
amended, otherwise known as the Compensation and Position Classification Act of 1989,

CHAPTER V
REGISTRATION AND LICENSING

Section 27. Registration and Licensing of All Water Supply and Sanitation Services. —
All water supply and sanitation service providers, including bulic water suppliers and those
providing services to subdivisions and ather service providers, shall register with the Commission
and, subject to such rules, guidelines, procedures and other issuances of the Commission, obtain a
license to operate from the appropriate regulatory units.

The Commission shall 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 or 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 agreement or contract, or when invalidated by the Commission,
after due notice and hearing. where national security, national emergency or public interest so
dicrates.

Section 28 Conditions of License. — The Commission or the concerned regulatory unit,
may impose such conditions on the licensee as it may deem necessary, such as

(a) Tariffs, sates and charges that may be imposed from its customers or consumers.
(b) Term fixing the duration of the privilege.


(©)
(a)
(s)
(f}

(s)
(h)

(a)

(b)

(e)

(d)

Grounds for modifieation, suspension or cancellation of the License

Minimum technical performance and service level standards.

Expansion targets and service level improvements over time

Restricsions or conditions for wansferability of the business or controlling interest m the
business.

Reportorial requirements and obligations of the grantee.

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

Section 29. Rights and Duties of Licensees. —

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 professional,
diligent, and conscientious manner, in accordance with applicable laws rules and
regulations issued by the Commission and the generally 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.

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.

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

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 arrezrs in tariffs
and other charges;

3) Maintain financial accounts in accordance with the manner and procedure specified in
the ficense 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

Section 30. Setting Tariffs, Rates, and Other Charges, — Regulatory units shall establish
tarifYs, rates and other charges which are fair and reasonable, and ensure economic viability and &
fair return on investments

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

(a) Reasonable and prudent capita! and recurrent costs of providing the service including #
reasonable rate of return on capital,

(0) Efficiency of the service;

(c) Incentives for enhancement of efficiency,

(4) Willingness to pay of the customersiconsumers;

(c) Equity considerations, and

(f) Administrative simplicity

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

Section 31. Direct Access. — Fifly-one (51) percent of the registered water consumers in
a municipality, city or province may petition for direct access to water from any water service
provider subject to concurrence by the service provider and approval by the Commission. The
Commission shall promulgate rules and procedures for this mode of service.

Section 32. Innovative Schemes to Improve Efficiency und 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 shal] result in
improved efficiency, service expansion and lawer-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 10 meet such standards and targets,

CHAPTER VI
QUASE-JUDICIAL FUNCTIONS OF THE COMMISSION


Section 33. Proceedings Before the Commission. — For the purpose of any investigation,

inquiry or proceeding, the Commission shall

(a)
(b)
{c)

Issue subpoena duces tecum and subpoena ad testificandum,

Appoint hearing officers to hear and receive evidence on behalf of the Commission;

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

Section 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 it is based

The Commission shall publish and make available for public inspection, all decisions and

final orders in the adjudication of contested cases or applications,

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6)

©

(a)

Section 35, Appeals Procedure and Prohibition Against Injunction. —

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

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

‘Any act or decision of the Commission shall not be invalidated merely because of a defect
or itregularity in, ar in connection with, the eppointment or vacancy in the Office of the
Chaisperson or any other member of the Commission.

CHAPTER VIT
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

Section 36. Interface with Other Sector Regulators, —

The DENR shall continue to exercise 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 t ensure that the standards enc 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.

Section 37, Transfer of Rights and Obligations. — Tae Commission shall, by virtus 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 all other government agencies and units whose powers and functions
have heen transferred to the Commission

The transfer of powers and functions to the Department of the concerned agencies as herein
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, pessonnel, 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 affooted agencies shall cantinue to serve unti) 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.

Section 38. Absorption or Separation from Service of Employees of the Subrogated
Agencies. — The curtent 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 shal! be absorbed by the Department, in accordance
with their staffing pattern and the selection process as prescribed under Republic Act No, 6656 or
the Government Reorganization Law

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

Section 39. Water Trust Fund. —- There is hereby created » 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 sitall 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 cen
percent (10%) of the total income generated from raw water extraction shall be given as share of
the concerned local government unit or indigenous peoples (IP) community who own the specific
areas or land where the raw water was sourced

CHAPTER VHT

FINAL PROVISIONS

Section 40, Applicability of Eave of Doing Business Law. — The prescribed processing
time provided under Section 9b) 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 goverament services

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

Section 42. Appropriations, —The amount necessary to cover the initial implementasion
of this Act shall be charged against the currents 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 #s may be necessary for the continued implementation of the Act shall
te included in the annual GAA

Section 43, Jmplementing 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.

Section 44. Separubility Clause. — If for uny reason any portion or prevision of this Act
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect.

Section 34. Repealing Clause. —
(a) The following provisions arc 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 Liiities Acr of 1973, as amended by Letter
of Instruction No. 700 - Providing Measures To Controt And Regulate Increase In
Water Rates, Letter of Instruction No, 744 - Relative To Reliable Water Supply At
Reasonable Rates In The Coumryside 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) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order No. 124,
dated 30 Jannary 1987, Reorganizing the Department of Public Works and Highways,
Redefining its Powers ond Functions, amd For Other Purposes on renarping and
reorganizing the National Water Resources Council into the Nationa! Water Resources
Board,

‘The following provisions are hereby amended accordingly

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

2) Section 154, Article V, Chapter I, Title One, Book Il of Republic Act No 7150, 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 rogulation 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 Tounsm 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;

Sections 7 and 8 on the adjudication of water pollution cases under Republic Act No.
3931 entitled, Aw Act Creating the National Waier and Air Pollution Comrot
Commission, particularly with respect to Section 6 letters, f, g, |, k Presidential Decree,

9


84 entitled, provicting for the Revision of Republic Act No. 3931, Commonly Known
as the Pollution Control Law, and For Other Purposes,

6) Sections 4(1) and 7 of Republic Act No. $275, otherwise known zs 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 If 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

Section 46. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or iz a newspaper of general circulation,

Approved,