THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
, 
S E N A T E  
fsl No. 
Introduced by Senator Juan M. Flavier 
EXPLANATORY NOTE 
After the Clean Air Act’s enactment into law, the greater challenge now is its 
efficient and effective implementation. Having all the powers and functions the 
Department of Environment and Natural Resources (DENR) is currently granted to 
implement, there is an even greater need to review its existing powers and functions with 
the end in view of effectively implementing critical legislation such as the Clean Air Act. 
Based on the experience of other countries, such as the United States, Australia, 
and New Zealand, among others, resource utilization and developmental functions are 
separate from environmental protection and regulation functions. These two areas of 
concern are being implemented by separate government agencies. 
This bill, therefore, proposes the sepai-ation of the environmental protection and 
regulatory functions of the DENR by creating a separate agency called the National 
Environmental Protection Agency (NEPA), which will take charge of these other 
fLinctions. By directing the new agency towards these fimctions, the DENR will be able 
to concentrate on resource utilization and development while this new body will focus on 
environmental protection and regulation. 
Specifically, the powers and functions of the NEPA, which will be an 
independent, cabinet-level watchdog, are as follows: 
1. 
2. 
3. 
4. 
5. 
To formulate an integrated policy approach to environmental conservation and 
protection which will be implemented through comprehensive and continuous 
conservation and environmental protection strategies and action plans; 
To enforce environmental quality standards for water, air, land and noise, and the 
prescription of rules and regulations for pollution control and environmental 
conservation; 
To undertake research and information campaigns towards the attainment of 
environmental protection and sustainable development goals; 
To deputize appropriate government agencies or instrumentalities and establish 
field offices in various administrative and administrative regions of the country 
for the purpose of enforcing the provisions of this Act; 
To manage the National Environmental Protection Fund for financing adequate, 
suitable and appropriate measures to protect and improve environmental quality; 
- 1 -  


6. 
To issue subpoena duces tecum, subpoena ad testgjkandum, cease and desist 
orders, orders to vacate or demolish any structure, and temporary orders of 
confiscation or restraint of any movable article or property; and 
7. 
To promote cooperation and encourage greater participation of the private sector 
and non-government organizations in the protection of the environment. 
This measure does not only build a power.fu1 structure to deal with problems of 
the environment but appropriately strengthens the Pollution Adjudication Board and 
establishes a complementary network of cooperation and joint undertaking between the 
government and the citizenry, especially at the local level. 
In this light of the foregoing, approval of this bill is earnestly requested. 
F 
ER 
2 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
AN ACT 
CREATING THE PHILIPPINE ENVIRONMENTAL PROTECTION AUTHORITY, 
DEFINING ITS POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Represenfafives of the Philippines in Congress 
assembled: 
1 
CHAPTER I 
2 
GENERAL PROVISIONS 
3 
4 
5 
6 
7 
s 
9 
10 
The State shall therefore ensure that social and economic development 
11 
activities of the public and private sectors are undertaken with due regard to the 
12 
people's health, nature's carrying capacity, and the future generations' right over 
13 
sustainable use of current resources and the environment's long-term stability 
14 
and integrity consistent with the growth, development and expansion of 
15 
employment opportunities. 
16 
SEC. 3. 
Creation of the Philippine Environmenfal Profecfion 
17 
Aufhorify. - In order to carryout the declared policies under Section 2 hereof and 
is 
to efficiently and effectively address the problems of natural resource 
19 
degradation and environtnental pollution, there is hereby created a Philippine 
20 
Environmental Protection Authority, hereinafter referred to as the Authority, which 
21 
agency shall be directly under the Office of the President. 
22 
SEC. 4. Mandafe. - The Authority shall be the lead government agency 
23 
primarily responsible for the protection and conservation of the country's 
24 
environment and natural resources through the regulation of environmental 
25 
impact caused by pervasive human activities and the prevehtion, control, 
26 
SEC. I. 
Title. - This Act shall be known as the "Philippine Environmental 
Protection Authority Act of 2004." 
SEC. 2. Declaration of Policy. - Article I I ,  Sections 15 and 16 of the 
Philippine Constitution provide that the State as matter of policy shall: (1) protect 
and promote the right to health and instill health consciousness among them; and 
(2) protect and advance the right of the people to a balanced and healthful 
ecology in accord with the rhythm and harmony of nature 
mitigation and abatement of environmental pollution. 
3 


1 
SEC. 5. Powers and Functions. - The Authority shall have the following 
2 
powers and functions; Provided, That certain responsibilities may be devolved to 
3 
local government units in consonance with the Local Government Code: 
4 
(a) Formulate and implement an integrated approach towards the 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
protection 
of the country’s environment and resources; 
(b) Evolve an integrated, multi-sectoral and multi-disciplinary National 
Environmental Protection Strategy which shall focus on critical life- 
support systems; 
(c) Develop and implement comprehensive medium and long-term action 
plans for environmental protection, pollution prevention and control that 
shall form part of the National Economic and Development Authority’s 
(NEDA) national development plan; 
(d) Formulate and enforce environmental quality standards for water, air, 
land, noise, radiation and other standards which may fall within its 
jurisdiction in subsequent legislations; 
(e) Promulgate and prescribe policies, rules and regulations regarding the 
control of water, air and land pollution and the proper disposal of solid 
wastes and toxic and hazardous substances; 
(9 Develop and undertake an integrated research program pertaining to 
environmental protection, pollution prevention and control; 
(9) Monitor and evaluate the implementation of all laws relating to the 
regulation and control of activities that have an impact on the 
maintenance of a wholesome naturql environment and undertake 
and/or recommend measures relative thereto; 
(h) Design, establish and institutionalize, among others: 
(I) 
An. incentives system based on waste minimization, the re- 
use and recycling of materials and the conservation of 
i nd ig enous resources ; 
(2) A system of fines, fees and penalties based on various 
strategies such as, but not limited to, the “polluter pays” 
principle, 
end-of-pipe treatment, 
and 
the 
mitigation, 
abatement, 
neutralization, 
clean-up, 
remediation 
and 
rehabilitation of pollution-affected areas and populations; 
(3) An integrated environmental protection permit and licensing 
system covering the regulatory areas of pollution control and 
environmental impact assessment; and 
(4) A 
cost-effective 
environmental 
information 
system 
responsive to the needs of the Authority. 
4 


c 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(i) Prepare, update, monitor and evaluate regional environmental profiles 
and qualities of water, air, land and ecosystems media; 
(j) Set water, air, land, radiation and ecosystem standards for emissions, 
ambient 
* air 
and 
water 
quality, 
end-of-pipe 
mitigation, 
and 
rehabilitation/remediation/restoration; 
(k) Regulate all Environmental Management Units (EMUs) required in all 
air and water quality management areas, local government units, 
government agencies and instrumentalities including but not limited to 
those under the Metro Manila Development Authority (MMDA), 
Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan 
Authority (SBMA), Regional Industrial Centers (RICs), National Power 
Corporation (NAPOCOR) and/or its successor entities, Philippine 
National Oil Company (PNOC), and other Government Owned and 
Controlled Corporations (GOCCs) and the private sector; 
(I) Extend training and technical assistance to EMUs; 
(m)Take over the functions of local EMUs, on an interim or temporary 
basis where such EMUs are incapable of effectively exercising its 
functions and/or in cases when public ihterest so demands; 
(n) Coordinate, monitor and evaluate the implementation of domestic 
environmental 
laws 
and 
international 
environmental 
treaties, 
agreements and conventions; 
(0) 
Issue subpoena duces tecum, subpoena ad testificandum and cease 
and desist orders; 
(p) Declare a state of emergency in case of actual or imminent 
environmental disasters; 
(9) Expropriate property after just compensation for public good; 
(r) Command and call the assistance of appropriate government agencies 
or instrumentalities for the purpose of enforcing the provisions of this 
Act and its implementing rules and regulations as well as the orders 
and decisions of the Authority; 
(s) Submit an annual and 5-year environmental quality status report to the 
President and the Congress; 
environmental protection and pollution prevention and control; 
(u) Promote cooperation and encourage greater people participation and 
private initiative in environmental protection and pollution prevention 
and control; 
(t) Conduct information, education, communication and training relating to 
5 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I1 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(v) Organize the most appropriate implementing mechanism relative to the 
(w)Adopt, prescribe and promulgate rules and regulations governing the 
procedures of the Authority with respect to hearings, the filing of 
reports, the issuance and/or review of all permits and other rules and 
regulations for the purpose of the implementation and enforcement of 
this Act. 
performance of its mandated powers and functions; 
(x) Establish’ field 
offices in the country’s administrative 
and/or 
autonomous regions to coordinate with the local government units in 
the implementation of the provisions of this Act; and 
(y) Exercise other powers and functions including corporate powers, 
oversight powers over agencies and instrumentalities which activities 
have a direct and residual impacts on the environment, natural and 
human resources such as but not limited to radiation and noise 
regulations, occupational health and safety standards, infrastructures 
and building standards; and perform such acts as may be deemed 
necessary and proper or which may be declared by the Authority to be 
necessary, useful, incidental or auxiliary to accomplish its mandate and 
objectives. 
CHAPTER II 
AUTHORITY PROPER 
i 
SEC. 6. Office of the Director-General - The Office of the Director- 
General shall provide the overall supervision to the Authority. It shall be 
composed of the Director-General and his immediate staff; the Deputy Director- 
General; the Office of Assistant Director-General for Public Affairs and 
Education; the Office of Assistant Director-General for Legal and Legislative 
Affairs; the Office of Assistant Director-General for Environmental Planning and 
Research; the Office of Assistant Director-General for Ecosystems Management; 
the Office of Assistant Director-General for Environmental Regulations; and the 
Office of 
Assistant 
Director-General for< Administrative, 
Financial and 
Management Services. 
SEC. 7. The Director-General - The Director- General shall be appointed 
by the President for a term of six (6) years from the time of the original date of 
appointment without prejudice to the termination of such appointment for just 
cause. He shall have the status, rank and compensation equivalent to that of a 
cabinet secretary. 
The Director-General shall have the following powers and functions: 
6 


. 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
(a) Establish policies and standards for the efficient and effective 
operation of the Authority in accordance with the overall program of the 
Govern men t ; 
(b) Implement rules, regulations and other issuances necessary in 
executing the Authority’s mandate, objectives, policies, plans, 
programs and projects and in compliance with international legal 
instruments and agreements regarding 
t environmental protection and 
pollution prevention and control; 
(c) Advise the President on the promulgation of policies, rules and 
regulations and other issuances relative to environmental protection 
and pollution prevention and control; 
(d) Exercise overall supervision relative to the Authority’s functions and 
activities; 
(e) Delegate authority for the performance of any administrative or 
substantive function to the Authority’s subordinate officials; 
(9 Perform such other functions as may be provided by law or as 
appropriately assigned by the President. 
SEC. 8. The Deputy Director-Generd - The Director-General shall be 
assisted by a Deputy Director-General who shall be appointed by the President 
upon the recommendation of the Director-General. The Deputy Director-General 
shall have a fix term of six (6) years from the time of the original date of 
appointment without prejudice to the termination of such appointment for just 
cause. He shall have the status, rank and compensation equivalent to that of a 
cabinet undersecretary. 
SEC. 9. The Office of fhe Assistant Director-Genera/ for Public Affairs 
and Education. - The Office of the Assistant Director-General for Public Affairs 
and Education shall have the following powers and functions: 
(a) Establish and formulate programs aimed at increasing the awareness 
of the general public regarding environmental issues and concerns; 
(b) Design and implement programs geared towards behavioral change 
and value formation aimed at altering polluter behavior and inculcating 
the environmental ethics of stewardship and the principles and 
practices of sustain able development ; 
(c) Plan and engage social-marketing strategies aimed at generating 
broad-based and multi-sectoral support for environmental protection 
and pollution prevention and control; 
7 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(d) Disseminate information on policies, plans, programs and projects 
relating to environmental protection and pollution prevention and 
control to the general public; 
(e) Perform such other functions as may be assigned by the Director- 
General. 
SEC. I O .  The Office of the Assistant Director-General for Legal and 
Legislative Affairs. - The Office of the Assistant Director-General for Legal and 
Legislative Affairs shall have the following powers and functions: 
(a) Provide legal advice and services on all policies, programs and 
(b) Handle administrative cases filed against any personnel of the 
operational matters of the Authority; 
Authority and submit recommendations pertaining thereto; 
(c) Initiate proper legal actions and proceedings such as but not limited to, 
the prosecution of violators of the Authority’s orders, rules and 
regulations; 
(d) Provide legal representation to the Authority in cases where the 
Authority or any of its duly authorized officers becomes a party to a suit 
in relation to the exercise of its powers and functions; 
(e) Coordinate with Congress and various agencies in the review, 
evaluation and formulation of relevant guidelines, rules and regulations 
and other legislative measures pertain:ng to environmental protection 
and pollution prevention and control; and 
(f) Perform such other functions as may be assigned by the Director- 
General. 
SEC. 11. The Office of the Assistant Director-General for 
Envirpnrnental Planning and Research. - The Office of the Assistant Director- 
General for Environmental Planning and Research shall have the following 
powers and functions: 
(a) Design, establish and operate an environmental and management 
information system, including data bank development based on 
geographic 
information 
gleaned 
from 
periodic 
environmental 
s u rveil lance, reconnaissance and 
monitoring activities 
uti I izi ng 
complementary technologies including but not limited to, aerial 
photography and other remote sensing systems; 
(b) Formulate comprehensive, multi-year action plans for environmental 
protection and pollution prevention and control to be endorsed to 
NEDA for adoption into the national development plan; 
8 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
(c) Formulate and recommend to the Authority environmental quality 
standards for water, air, land, noise, radiation, and the like and 
environmental management guidelines for gaseous, liquid, solid, as 
well as, toxic and hazardous wastes; 
(d) Formulate and recommend an integrated research program pertaining 
to 
water, 
air, 
and 
land 
pollution, 
including 
research 
into 
environmentally-sound technologies and pollution control technologies; 
(e) Conduct research studies on specific environmental problems 
including, but not limited to, soil erosion and deforestation; 
(9 Review, analyze and evaluate existing as well as proposed 
environmental protection and pollution prevention and control policies, 
plans, programs and projects; 
(9) Prepare the environmental quality status report to be submitted to the 
(h) Conduct post-audit studies of environmental impact assessments 
President and Congress; 
prepared in accordance with Presidential Decree 1586; 
(i) Provide research laboratory services pursuant to the Authority’s 
exercise of regulatory functions such as, but not limited to, the setting 
of standards and permit and licensing activities; 
(j) Provide research support services to the field offices of the Authority in 
order to ensure their efficient and effective operation; and 
(k) Perform such other functions as may be assigned by the Director- 
General. 
SEC. 12. The Office of the Assistant Director-General for Ecosystems 
Management. - The Office of the Assistant Director-General for Ecosystems 
Management shall have the following powers and functions: 
(a) Formulate an integrated, multi-sectoral and multi-disciplinary national 
environmental protection and pollution prevention and control strategy; 
(b) Formulate policies, rules and regulations for the protection of 
vulnerable ecosystems such as but not limited to coastal zones, inland 
lakes and critical islands; 
(c) Formulate operational plans on the rehabilitation or upgrading of the 
(d) Coordinate the implementation of the approved National Environmental 
Protection Strategy, as well as the operational plans for ecosystem and 
rehabilitation; and 
(e) Perform such other functions as may be assigned by the Director- 
quality of degraded and damaged ecosystems; 
General. 
9 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
SEC. 13. 
The Office of the Assistant Director-General 
for 
Environmental Regulations. - The Office of the Assistant Director-General for 
Environmental Regulations shall exercise the following powers and functions: 
(a) Design, establish and institutionalize a Unified environmental permit 
and licensing system for pollution control, land use planning/zoning 
and environmental impact assessment; 
(b) Review, analyze and evaluate pertinent technical/legal documents 
pertaining to environmental permitting/licensing in order to determine 
the environmental acceptability and/or soundness of programs, 
projects and activities that might significantly affect the environment; 
(c) Issue standards, rules and regulations to govern the approval of plans 
and specifications for sewage works and industrial waste disposal 
systems and the issuance of permits relative thereto, inspect the 
construction and maintenance of sewage works and industrial waste 
disposal systems for compliance to plans; 
(d) Make, alter or modify orders requiring the discontinuance of pollution 
specifying 
the 
conditions 
and the time within 
which 
such 
discontinuance must be accomplished; 
(e) Issue, renew, or revoke permits, under such conditions as it may 
determine to be reasonable, for the prevention and abatement of 
pollution, for the discharge of sewage and industrial waste or for the 
installation or operation of sewage works and industrial disposal 
systems or parts thereof; 
(f) Perform investigative and monitoring functions to ensure the 
compliance of proponents with the Authority’s rules and regulations; 
(9) Coordination and implementation by the public and private sectors of 
the NEDA-adopted multi-year action plan for environmental protection 
and pollution prevention and control; and 
(h) Perform such other functions as may be assigned by the Director- 
General . 
SEC. 
14. 
The Office of the Assistant Director-General 
for 
Administrative, Financial and Management Services. - The Office of the 
Assistant Director-General for Administrative, Financial and Management 
Services shall have the following powers and functions: 
(a) Administer the corporate mandates of the Authority; 
(b) Provide services relative to personnel information, records, supplies, 
equipment, collection and disbursements, security, and custodial 
works; 
10 


, 
4 
8 
9 
10 
11 
12 
13 
14 
I5 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(c) Advice the Authority relative to budgetary, financial, and management 
improvement matters; and 
(d) Perform such other functions as may be assigned by the Director- 
General. 
SEC. 15. Regional Regulatory Offices of the Authority. - Field offices 
of the Authority are hereby created and established to cover regulatory regions in 
the following areas: 
(a) Central Regulatory Region to cover the Laguna de Bay Region and the 
rest of the National Capital Region; 
(b) Northern Luzon Regulatory Region to cover Regions I, II, Ill and the 
Co rd i I le ras ; 
(c) Southern Luzon Regulatory Region to cover Regions IV and V; 
(d) Eastern Visayas Regulatory Region to cover Region Vlll and the 
Provinces of Cebu, Bohol and Siquijor; 
(e) Western Visayas Regulatory Region to cover Region VI and the 
Provinces of Negros Occidental and Oriental; 
ARMM; and 
(9 Northern Mindanao Regulatory Region to cover Regions IX, X, Xlll and 
(9) Southern Mindanao Regulatory Region to cover Regions XI and XII. 
The regional regulatory offices of the Authority shall have the following 
powers and functions: 
(1) Assist the EMUS and other environmental quality management 
areas within their regional jurisdiction in the implementation of 
environmental protection and pollution prevention and control 
laws, as well as, implement policies, plans, programs, projects, 
rules and regulations of the Authority in consonance with the 
objectives of sustainable development; 
(2) Coordinate with other departments, offices, and agencies in the 
region and local government units in the enforcement of 
environmental protection and pollution prevention and control 
laws; 
(3) Formulate, monitor, evaluate and implement regional medium 
and long-term action plans for environmental protection and 
pollution prevention and control; 
(4) Conduct appropriate field research ahd investigative activities 
such as, but not limited to, environmental surveillance, 
reconnaissance and monitoring in the region; 
11 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33' 
34 
35 
36 
37 
(5) Respond to complaints and queries from the public regarding 
environmental protection and pollution prevention and control; 
(6) Provide support services to the regional Environmental 
Adjudication Commissions; and 
(h) Perform such other functions as may be assigned by the Director- 
General. 
SEC. 16. Environmenfal Adjudication Commission. - The Pollution 
Adjudication Board created under Executive Order No. 192 is hereby 
reconstituted into the Environmental Adjudication Commission (EAC). It shall be 
composed of a Chairman and six (6) Commissioners to be appointed by the 
President, through the recommendation of the Director-General, from the 
following 
sectors: 
business, 
academe, 
professional 
organizations 
on 
environmental protection practice, environmental non-government organizations 
(NGOs) and labor: Provided, That there shall be at least one (1) member 
representing the sectors as mentioned: Provided, further, That the Chairman of 
the Commission shall be an environmental protection practitioner for at least five 
(5) years prior to his appointment. 
The Chairman and the Commissioners shall have a fix term of six (6) 
years from the time of the original date of appointment without prejudice to the 
termination of such appointment for just cause. Of those first appointed, three 
members shall hold office for six (6) years, two members for four (4) years, and 
the last member for two (2) years. 
The Chairman shall have the status, rank and compensation equivalent to 
that of a cabinet undersecretary while the Commissioners shall have the status, 
rank and compensation equivalent to that of an assistant secretary. 
The EAC shall have the following powers and functions: 
(a) Hear and decide all cases falling within its jurisdiction as provided 
for in Executive Order No. 192 and other related laws and 
issuances; 
(b) Make; issue, alter or modify orders necessary and incidental to the 
enforcement of decisions made by the Commission; 
(c) Serve as arbiter for the determination of reparation or restitution of 
damages and losses resulting from environmental degradation or 
pollution; 
(d) Deputize in writing or command and call the appropriate 
government agencies or instrumentalities for the purpose of 
enforcing its decisions; 
12 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I1 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
(e) Issue, in case of imminent danger to life or property, an ex-parte 
order directing the discontinuance of pollution or wastes, or 
temporary suspension or cessation of operation of the equipment, 
project or activity and other acts causing environmental 
degradation, generating such pollutants or wastes, without the 
necessity of a previous public hearing; 
(9 Provide for its own organizational set up and rules of procedure in 
the conduct of its official functions; and 
(9) Exercise such powers and perform such other functions as may be 
necessary to carry out its duties and responsibilities under this Act. 
The EACs powers and functions may be delegated to the Regional EACs 
in accordance with the rules and regulations to be promulgated by the 
Commission. 
SEC. 17. Resfrucfuring of fhe Phi?ippine Council for Sustainable 
Deve/opment. - The Philippine Council for Sustainable Development (PCSD) 
created by Executive Order No. 15 is hereby restructured. The PCSD shall be 
chaired by the NEDA Director-General and co-chaired by the Secretary of 
Natural Resources and the Director-General of the Authority. The Secretariat 
functions of the PCSD shall be transferred to the Authority. 
The PCSD may create and establish Regional Councils for Sustainable 
Development (RCSDs), to be chaired by a governor, elected from among the 
member provinces and vice-chaired by the highest regional officials of the 
Authority, the NEDA and the Department of Natural Resources. 
SEC. 18. Policy and Program Advisory Body. . There is hereby created 
a Policy and Program Advisory Body hereinafter referred to as the Advisory Body 
to be composed of all relevant officials and staff of the Authority; officials and 
staff of other relevant government agencies and instrumentalities; relevant 
industry and business organization officials; registeredhecognized non- 
government and people’s organizations with known interest in environmental 
protection; and other interested individuals and entities with known contributions 
to environmental and pollution concerns. 
The Advisory Body shall serve as the consultative assembly that shall 
assist the Authority in the formulation and development of comprehensive, 
strategic multi-year plans and programs for environmental protection, pollution 
prevention and control: Provided, That the Director-General shall issue a list of 
actual members and appropriate authorization for the attendance of such 
individuals and entities in every meeting or assembly of the Advisory Body: 
Provided, further, That the Advisory Body shall meet at least once every calendar 
13 


1 
2 
3 
4 
5 
6 
7 
. 8  
9 
10 
11 
12 
13 
14 
15 
16 
17 
1s 
19 
\20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
year: Provided, finally, That such attendance shall be voluntary and authorized 
attendees shall not be entitled to any form of compensation. 
SEC. 19. Qualificafions. - No person shall be appointed Director- 
General, Deputy Director-General, or Assistant Director-General of the Authority 
unless he is a citizen and resident of the Philippines, of good moral character, 
and proven competence in any of the following fields: (a) environmental science 
andlor similar disciplines; (b) public administration; (c) law; (d) management; 
(e) relevant social science disciplines. 
SEC. 20. Organization. - The Director-General, with the approval of the 
President, may reorganize, restructure, and redefine the functions of the offices 
defined in previous Sections in line with the effective discharge of the powers and 
functions of the Authority under this Act. 
CHAPTER 111 
TRANSITORY PROVISIONS 
SEC. 21. Abolition of Agencies, Transfer of Powers, Functions, 
Righfs, Assets and Liabilities. - The Environmental Management Bureau and 
the Ecosystem Research and Development Bureau of the Department of 
Environment and Natural Resources created under Executive Order No. 192 and 
the Laguna Lake Development Authority created under Executive Order No. 927, 
series of 1983, are hereby abolisoed subject to the provisions of this Act. 
The powers and functions, including the developmental and corporate 
mandates and field services of the said agencies are hereby transferred to the 
Authority and the Authority shall, by virtue of this Act, be subrogated to all the 
rights and assets of aforesaid agencies and all other agencies and government 
units whose functions and powers have been transferred to the Authority. All the 
contracts and liabilities of said offices and agencies are hereby transferred to and 
assumed by the Authority and shall be acted upon in accordance with the 
Auditing Code and other pertinent laws, rules and regulations. 
SEC. 22. Rafionalizafion or Transfer of Functions of Related 
Ageocies. - The following functions of the respective agencies are hereby 
transferred to the Authority: 
(a) The land use and zoning functions of the Metro Manila 
(b) The land use and zoning functions of the Housing and Land Use 
Development Authority, created by virtue of R.A. 7924; 
Regulatory Board, formerly the Human Settlements Regulatory 
Commission created by virtue of E.9. No. 648, series of 1981, as 
amended by E.O. No. 90, series of 1986; 
14 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(c) The regulatory and control functions for pesticides and other 
agricultural chemicals of the Fertilizer and Pesticide Authority 
created by virtue of P.D. 1144; 
(d) The functions for fuel testing and regulatory activities for fuels and 
fuel additives and other similar chemicals of the Department of 
Energy created by virtue of R.A. 7638; 
(e) The mines safety and environmental protection functions of the 
Mines and Geo-Sciences Bureau provided under R.A. No. 7942; 
(f) The regulatoiy functions for drinking water quality standards of the 
Department of Health created by virtue of E.O. 192; and 
(9) The accreditation and authorization of private emission testing 
centers provided for under R.A. No. 8749 and subsequent 
issuances on emission regulations under the motor vehicle 
inspection systems. 
The foregoing transfer of powers and functions shall include all applicable 
funds and appropriations, records, equipment, property, and such personnel as 
may be necessary: Provided, That only such amount of funds and appropriations 
of these agencies as well as only the personnel thereof which are completely or 
primarily involved in the exercise of the functions to be transferred to the 
Authority shall be affected by such transfer. 
The Philippine Coast Guard (PCG) is hereby designated as the lead 
enforcement arm of the Authority in marine pollution regulation. For this purpose, 
the Authority and the PCG shall institute within sixty days (60) upon the approval 
of this Act, such mechanisms and collaborative networks and undertakings to 
implement this provision. 
SEC. 23. Sfrucfure and Sfaffing Pattern. - The Director-General shall, 
within (60) days upon the effectivity of this Act, prescribe and approve the 
organizational framework and staffing pattern of the Authority. 
The positions created therein shall be filled by regular appointments by the 
President or the Director-General as the case may be: Provided, That in the 
filling of positions created, preference shall be given to the personnel of the 
Environmental Management Bureau, Ecosystems Research and Development 
Bureau, the Laguna Lake Development Authrjrity and related agencies affected 
by the provisions of this Act: Provided, however, That such individuals comply 
with the qualification standards set by the Civil Service Commission for the 
positions that they shall be appointed to: Provided, finally, That if such individuals 
possess the same qualifications, seniority shall be given preference. 
15 


’ 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
SEC. 24. Personnel Rights and Separation from Service. - The 
Director-General, heads of concerned agencies and the Chairman of the Civil 
Service Commission shall see to it that all the rights of personnel affected by the 
abolition, rationalization and reorganization are respected in accordance with 
prevailing civil service laws, rules and regulations. 
Employees separated from the service as a result of this reorganization 
shall, within six (6) months from their separation from the service, receive the 
retirement benefits to which they may be entitled under existing laws, rules, and 
regulations. 
CHAPTER IV 
APPROPRIATIONS 
SEC. 25. Appropriations. - Such amounts as may be necessary to 
effectively and efficiently carry out the provisions of this Act is hereby 
appropriated from the funds of the National Treasury not otherwise appropriated: 
Provided, That the herein appropriated amount shall only be supplemental to the 
funds and similar proceeds provided for under Sections 21 and 22 of this Act. 
Thereafter, such amounts as may be necessary for the continued operation and 
maintenance of the Authority shall be included in the annual General 
Appropriations Act. 
CHAPTER V 
MISCELLANEOUS PROVISIONS 
SEC. 26. Disclosure and Divestment of Financial Interests. - Before 
assumption of office, the Director-General of the Authority, the Deputy Director- 
General, and the Assistant Directors-General shall submit to the Civil Service 
Commission a list of all companies, partnerships, or business enterprises, 
includiog non-profit organizations, in which t;iey or any immediate member of 
their families within the second degree of consanguinity or affinity have any form 
of financial interest or employment relationship, including consultancy work: 
Provided, That upon assumption of office, all other employment, including 
consultancy work, held by such officers of the Authority shall immediately be 
terminated. 
Within thirty (30) days upon assumption of office, a complete divestment 
of financial interests in any institution, firm, or company, which fall under the 
supervisory or regulatory jurisdiction of the Authority, shall be made. 
Philippine Environmental Protection Authority. - 
SEC. 27. Record Keeping, Inspection, Monitoring, and Entry by the 
(a) For purposes of developing or assisting the development of any 
implementation plan, any standard of performance or any emission 
16 


, 
I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
standard, and of determining whether any person violates any of 
such standard or any requirement of such plan, the Authority may 
require any person who is subject ?o the provisions of this Act or 
any other requirement provided for in this Act or its implementing 
rules and regulations to: 
(I) 
Establish and maintain records; 
(2) Prepare reports; 
(3) Install, use and maintain monitoring equipment or methods; 
(4) Sample emissions in accordance with the methods and at such 
intervals and locations, as the Authority shall prescribe; 
(5) Keep records on control equipment parameters, production 
variables or other indirect data when direct monitoring of 
emission is impracticable; and 
(6) Provide such other information as may reasonably be required. 
(b) The Authority or its authorized representative, upon presentation of his 
credentials: 
(1) Shall have the right of entry to, upon or through any premises of 
such person or entity in which any records required to be 
maintained under the paragraph (1) hereof are located; and 
(2) May, at reasonable times, have access to and copies of any 
records, inspect any monitoring equipment or methods and 
sample any emission/discharges which such person is required 
to sample under paragraph (a) hereof; 
(c) The Authority shall, in the case of any person who is the owner or 
operator of a major stationary source, and may, in the case of any 
other person, require enhanced monitoring and submission of anti- 
pollution/emission/discharge 
compliance 
certification. 
Such 
compliance certifications shall include information regarding the 
following: 
(1) Identification of the applicable requirement that is the basis of 
the certification ; 
(2) Compliance status; 
(3) Whether compliance is continuous or intermittent; and 
(4) Such other facts as may reasonably be required. 
(d) Submission of a compliance certification shall in no way limit the 
PEPA’s authority to investigate or otherwise implement the provisions 
of this Act. 
17 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I1 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
(e) Any record, report or information obtained under this Section shall be 
available to the public, except upon a satisfactory showing to the 
Authority, that records, reports, or information, or parts thereof, if made 
public, would divulge methods or processes entitled to protection as 
trade secrets. 
SEC. 28. Role of Local Government tunifs. - All local government units 
shall, pursuant to national policies and subject to the supervision, control and 
review of the Authority, enforce the provisions of this law, Provided, That the 
Authority shall take into consideration the principles and provisions of devolution 
and local autonomy in the Local Government Code. 
Local government units shall design their own implementation plans to 
address the causes of environmental pollution with their respective jurisdictional 
boundaries to guarantee the national standards set by the Authority or stricter 
standards if desired by such local government units. 
Each local government unit may develop and submit to the Authority a 
procedure for carrying out the provision of this Section in their respective 
localities. If the Authority finds the local government unit procedures adequate, it 
may delegate to such unit any authority in carrying out this function: Provided, 
however, That PEPA shall maintain its authority to independently inspect the 
enforcement procedure adopted: Provided, further, That the Authority shall have 
the power to take over all or parts of a local government program if the local 
government unit concerned lacks the capability to carry out the provisions of this 
Act, or fails to meet or fairly enforce the national standards set by the Authority. 
SEC. 29. Cooperative Activities. - The Authority shall encourage 
cooperative activities by the national and local governments for environmental 
protection and pollution prevention and control. It shall also encourage the 
enactment of -- in so far as practicable and iri the light of varying conditions and 
needs -- improved and uniform laws and local ordinances relating to 
environmental protection and pollution prevention and control so as to assure the 
utilization of all appropriate and available facilities and resources within the 
National Government. 
SEC. 
30. Participation of the People and Non-Government 
Organlzations in Environmenfal Protection and Pollution Prevention and 
Control. - The people’s right to a healthy environment shall also vest upon the 
people the duty to engage in activities to protect the environment and to prevent 
pollution. 
People’s and non-government organizations or NGOs undertaking 
environment-related activities shall be encouraged in their efforts to organize, 
18 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
educate and motivate the people in addressing pertinent environmental issues 
and problems at the local and national levels including their membership and 
participation to the activities of the Policy and Program Advisory Body provided 
for under Section 18 of this Act. 
SEC. 31. Citizen’s Suit. - Any citizen or group of citizens shall have the 
right and power to institute the appropriate legal action and administrative 
proceeding, as the case may be, against violators of environmental protection 
and pollution control laws. 
No temporary or permanent injunction or restraining order in any case 
involving or arising out of any administrative complaint filed before the Authority 
shall be issued by any court or other entity. 
SEC. 32. Reorganization of fhe Department of Environment and 
Nafural Resources (DENR). - As a consequence of the creation of the PEPA 
pursuant to this Act, the President is hereby authorized to reorganize the DENR 
into an agency that shall be responsible for the development and conservation of 
natural resources such as but not limited to, lands, mines and minerals, water, 
forestry, protected areas and similar resources: Provided, That the reorganization 
shall be in accordance with applicable civil service laws, rules and regulations. 
SEC. 33. National Environmenf Profecfion Fund (N€PFUND). - There 
is hereby created a National Environment Proyection Fund to be administered by 
the Authority for the purpose of financing adequate, suitable and appropriate 
measures to protect and improve environmental quality. The administration of the 
NEPFUND shall be in accordance with the corporate powers vested upon the 
Authority and shall be separate and distinct from the appropriations which the 
Authority shall receive in accordance with Section 25 of this Act: Provided, That 
the Authority, in coordination with the local government units and other relevant 
EMUs, shall institute a mechanism whereby funds collected under this Section 
shall be extended on a regular basis to concerned LGUs and relevant EMUs 
solely for the purpose of enforcing environmental protection laws and developing 
local regulations .in furtherance of this Act. 
To finance the said Fund, there is hereby imposed the following: 
(a) A national environment protection fee equivalent to ten percent (1 0%) 
of the total fees charged, which in no case shall exceed the amount of 
one hundred pesos (PlOO.00) for every business or non-business 
permit or license issued by the government. 
(b) An allocation equivalent to ten percent (10%) of the total unclaimed 
bank balances escheated in favor of the State under Act No. 3936, as 
amended (Unclaimed Balances Law); 
19 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I1 
12 
13 
14 
15 
16 
(c) Proceeds from fines and penalties and user charges prescribed in 
natural resource conservation and environmental protection laws and 
other penalties imposed by the Authority; 
(d) Proceeds from amounts levied by public utility firms as environment 
fees and/or environment protection fees; and 
(e) Grants, subsidies, endowments and donations in the form of 
contributions. Such contributions shall be exempt from the payment of 
taxes. 
I 
SEC. 34. Repealing Clause, - All laws, presidential decrees, executive 
orders, letters of instruction, rules and regulations or parts thereof inconsistent 
with the provisions of this Act are hereby repealed or modified accordingly. 
SEC. 35. Separability Clause. - If, for any reason, any portion or part of 
this Act is declared unconstitutional or invalid, the rest of the provisions not 
affected thereby shall remain in full force and effect. 
SEC. 36. Eflecfivity. - This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
Approved, 
20