Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HoUSE BILL No. 5 02 7
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Introduced by
REP. AUGUSTINA DOMINIQUE "Ditse Tina" C. PANCHO
EXPLANATORY NOTE
Rainwater Harvesting  (RWH) technology presents a significant solution to water
shortages and ground water depletion during the dry season, as well as in mitigating the
effects of excessive rains during the wet season.
RWH refers to methods employed to collect rainwater through catchment systems,
and  then  divert  them  through  gutters  to  a  storage  tank  to  provide  water  for  specific
applications.  At  present,  harvested  rainwater is  used  mainly to supply the demand  for
non-potable water but through adequate research on existing treatment techniques,  it is
possible  for  rainwater  harvesting  technology  to  supplement  public  need  for  potable
applications.  Potable applications  include drinking,  cooking,  bathing,  and  dishwashing.
Non-potable  applications  include  toilet  flushing,  fire  suppression,  household  cleaning,
gardening,  laundry washing,  pool/pond filling,  and vehicle washing.
In  comparison  with  the  current  public  water  system,  RWH  allows  water to  be
supplied  at the  point of consumption  thus,  owners are  in  full  control  of the technology.
Moreover,  of all the sources of water,  rainwater is among the cleanest.  Its quality only
diminishes depending on the quality of the atmosphere, the catchment and conveyance
systems,  and storage tank.  RWH technology therefore breaks the consumer's reliance
on a water supplier,  and additionally,  can also significantly reduce storm drainage load
and excessive flooding.
In  terms  of  environmental  impacts,  as  compared  to  other  sources,  rainwater
harvesting technology pose lesser or no damage at all for the environment since existing
structures such as domestic houses will only be retrofitted.  Its only disadvantage relies
mainly on  the  randomness  of the  rainfall  pattern  thus the  demand  of the  user will  not
always be met.
However,  RWH technology is not that popular in Philippine context. To be able to
promote the technology, we need to identify and supply the users with the advantages of
the system over the current "lined system" of water distribution  like the ease in terms of
installation, operation, and maintenance with readily available construction materials,
Moreover,  since  commercial  and  industrial  establishments  pose  as the  primary
consumers of water derived from our natural water systems, they need to be encouraged
to install rainwater catchment facilities to reduce water extraction and save the remaining
ground water for the next generation.
In  this  direction,  this  Bill  seeks  to  provide  an  incentive  scheme  to  encourage
building  owners  and  developers  to  embrace   RWH  technology  in  their  businesses.


Primary to  this  incentive  scheme will  be the  provision  of tax  incentives  in  the  form  of
appropriate tax deductions, tax credits and tax reductions.
With urgency to encourage a collective action to preserve our natural environment


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL No. 5 02 7
Introduced by
REP. AUGUSTINA DOMINIQUE "Ditse Tina" C. PANCHO
AN  ACT  GRANTING   INCENTIVES  FOR  COMMERCIAL  AND   INDUSTRIAL
ESTABLISHMENTS, AND  DEVELOPERS WHO WILL INCORPORATE RAINWATER
HARVESTING    TECHNOLOGY    IN    THEIR    BUSINESSES,    AND    FOR    OTHER
PURPOSES THEREOF
Be it en_a.cted by the Senate and House of Representatives in Congress of the Philippines
assembled:
SEPTIO¥_1.  Short Title.  ~~ This Act shall  be  known  as "Rainwater Harvesting
Incentive Act of 2022".
SECTION 2. Declaration of Policy.
(a)  lt is hereby declared the policy of the State to protect and promote the rights
of the people to health, a balanced and healthful ecology and instill health consciousness
among them.
(b)   The   State   shall   pursue   a   policy   of  sustainable   development,   balancing
progress, the protection of the environment, and the health and welfare of its people.
(c) The State shall  promote a comprehensive system of environmental planning
which seeks to conserve, rehabilitative and develop the physical environment and natural
resources of the nation that translates into physical and  spatial considerations policies
on   land   capability,    urbanization,    agricultural   development   and   natural   resources
development.
(d) Further it  is  hereby declared to  be the  policy  of the  State to  safeguard  life,
health,   property,  and  public  welfare,  consistent  with  the  principles  of  environmental
management and control.
(d)  Towards  this  end,  the  State  shall  approve  the  granting  of  tax  and  other
appropriate incentives to commercial and industrial establishments, and developers who
will incorporate Rainwater harvesting Technologies in their respective businesses.
SECTION    3.    Scope.    This   Act   shall    apply   to   commercial   and    industrial
establishments, and private developers governed under Philippine laws.


SECTION  4`  Incentive  Mechanisms.  Incentives  present  a  creative  tool  local
governments can  use to encourage the use of RWH technology and  practices among
commercial and industrial establishments within their purview. These incentives can  be
applied  to  both  new developments  and  existing  developments.  For new development
projects,   incentives  can  be  incorporated  into  the  development  processes,   such  as
building  and  other related  permits and other development codes and  requirements,  to
creatively encourage the use of RWH  technology and concepts.  In  already developed
areas,  incentives can be designed to encourage private property owners to retrofit their
properties to include RWH infrastructure designs and practices.
(a) Development Incentives: Offered to developers during the process of applying
for development permits.  Development incentives apply to private developers that take
initiative  by  using  more  sustainable  site  design  and  green  building  practices.  These
incentives are typically provided within the framework of existing land use or development
regulations  and  often  remove  or decrease fees,  requirements,  or steps  in  the  permit
process.
(b) Tax incentives. Offered to the commeroial and industrial sector in exchange for
specific   actions   or   investments   supporting   RWH   technology   and   practices.    Tax
incentives  which   can   be   granted   include   Tax   Deductions,   Tax   Credits,   and   Tax
Reductions as may be provided by the lmplementing Rules and Regulations of this Act.
SECTION  5.  Implementation.  -  the  Bureau  of  lntemal  Revenue  and  Local
Government   Units   (LGUs)   shall   have   the   primary   responsibility   in   the   effort   of
implementing the provisions of this Act and its lRR.  Respective LGUs shall also develop
a strategic communications plan to duly advocate the use of RWH and communicate the
incentive scheme under this Act to their respective constituencies.
SECTION 6. Appropriations. The amount necessary to carry out the provisions
of this Act shall  be charged  against the  current year's  appropriation  of the concerned
government agencies. Thereafter, such sums as may be necessary for the operation and
maintenance of this Act shall be included in the General Appropriations Act.
SIC:TION I. Implementing Rules and Regulations. Within ninety (90) days after
the  effectivity  of  this  Act,  the  Department  of  Interior  and  Local  Government  (DILG),
together  with  the  Department  of  Environment  and  Natural  Resources  (DENR),  the
Bureau of lntemal  Revenue (BIR),  in consultation with the  Department of Public Works
and   Highways   and   the   Joint   Building   and   Environmental   Planning   Researoh   and
Standards   Commission, shall   promulgate   the   implementing   rules   and   regulations
governing this Act.
SECTION  8. Separability Clause. If for any reason, any provision of part hereof
is declared invalid, the other provisions not affected thereby shall remain in full foroe and
effect.
SEC:TION 9, Repealing Clause. -Any provision of the law,  presidential decree,
executive  orders,  rules  and  regulations  contrary to the  provision  of this  Act  is  hereby
repealed, amended or modified accordingly.
SECTION 10.  Effectivity. -This Act shall take effect fifteen  (15)  days  after its
complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes earlier.
Approved,