SIXTEENTH CONGRESS ) > RECEN
REPUBLIC OF THE PHILIPPINES ) t
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and /'/p
Representative Maximo B. Rodriguez, Jr.

House Bill No, _ 2967
EXPLANATORY NOTE

The government is tasked by the fundamental law of the land to be the
guardian and custodian of our country's natural resources. This includes care
of our marine resources.

Just last August, a recent oil spill in Cavite occurred which was
determined by Philippine Coast Guard divers to have come from a leak in a
submerged pipeline of oil firm Petron Corp. and which turned parts of Manila
Bay red and adversely affected at least four coastal towns in the province.

Also last August 16, MV Saint Thomas Aquinas 1 collided with the MV
Sulpicio Express Siete which produced an oil spill that affected Cordova town.

These recent tragedies resulted in damage to our waters which this
legislative measure hopes to answer. This bill aims to institute a mechanism
for the prevention, abatement, mitigation and control of oil pollution within the
territorial boundaries of the country.

In view of the foregoing, immediate passage of this bill is earnestly
‘sought,

i B, RODR{GUEZ

MAXIMO B. i... JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House BillNo. _ 2967

AN ACT
CREATING THE OIL SPILL LIABILITY FUND

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

SECTION 1. Title. This Act shall be known as the “Oil Spill Liability Fund
Act of 2013".

SEC. 2, Statement of Policy. It is hereby declared the policy of the State to
prevent, abate, mitigate and control the pollution by oil and oily mixture of the
seas within the territorial jurisdiction of the Philippines.

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

(a) "DENR" means the Department of Environment and Natural
Resources;

(b) "Discharge in relation to oil or to an oily mixture means any
discharge or escape or spillage, however caused;

(©) "Fund" means the Oil Spill Liability Fund;

) "LGU" means Local Government Unit;

(e) "MARINA" means Marine Industry Authority;

0 “Oil” means oil of any kind or in any form including but not limited
to crude oil, fuel oil, heavy diesel oll and lubricating oil, oil refuse
and sludge;

(9) "Seas" means the waters surrounding, between and around the
islands comprising the Philippine Archipelago;

(h) "vessel" means every description of watercraft, or other artificial

contrivance used, or capable of being used, as means of
transportation on water except;

(i) Ships which are, or for the time being used as naval auxiliaries;
and
0) Ships of under 00 tons gross tonnage;

SEC. 4. Creation of the Oil Spill Liability Fund; Manner of Constitution. There
is hereby created an Oil Spill Liability Fund to be managed and administered
as a Trust Fund by the Department of Environment and Natural Resources
(DENR). The Fund shall be sourced from contribution of owners and
operators of tankers and barges hauling oil and/or petroleum products in
Philippine waterways and coast wise shipping routes. During its first year of
existence, the Fund shall be constituted by an impost of ten centavos per liter


for every delivery of transshipment of oil made by tanker barges and tanker
haulers. For the succeeding fiscal years, the amount of contribution shall be
jointly determined by the DENR, other concerned government agencies, and
representatives from the owner of tanker haulers, and ship hauling oil and/or
petroleum products. In determining the amount of contribution, the purpose for
which the Fund was set up shall always be closely considered.

SEC. 5. Purpose of the Fund. Amounts in the Oil Spill Liability Fund shall be
available for purposes of making expenditures for the payment of clean-up
and/or removal cost and natural resources damage assessments and claims
as determined by the Department of Environment and Natural Resources
(DENR) and administrative expenses related to such costs, assessments and
claims caused by or occasioned by any ship, tanker, vessel, tanker barge or
any other watercraft as understood in this Act which accidentally or otherwise
discharges oil or oily mixture on waters subject to the jurisdiction of the
Philippines; Provided however, that the assessment or claim made by the
DENR of the natural resource damage caused by an oil spill shall be payable,
without need of demand, to the Local Government Unit (LGU) within whose
territorial jurisdiction are situation waters affected by the oil spill; Provided
finally, that the Fund for containment, recovery and removal or clean-up if
soiled oil or olly mixture in waters within the territorial jurisdiction of the
Philippines.

SEC. 6. Limitation on Expenditures. The maximum amount which may be paid
from the Oil Spill Liability Fund with respect to —
i removal costs resulting from a single incident shall not exceed
P§,000,000.000 and
li natural resource damage assessment and claims in connection
with any single incident shall not exceed P2,500,000.00.

SEC. 7. Liability of owners of Ships, Tanker Barges and Tanker Haulers for
Oil Spill Limited to Contribution in the Fund. The liability of owners of tanker
barges and tanker haulers or of ships or watercraft as understood in this act
for any oil spill or natural resource damage however caused or occasioned
shall be limited to their contribution to the Fund.

SEC. 8. Responsibility for Physical Removal and/or clean-up of Oil Spills.
Without prejudice to the right of the DENR to engage the services of a private
contractor, the Philippine Coast Guard, using available funds from the Oil Spill
Liability Fund shall be the agency primarily responsible for the physical
removal and/or clean-up operations of oil spills.

SEC. 9. Repealing Clause. All laws, rules and regulations, inconsistent with
this Act are hereby repealed or modified accordingly.

SEC. 10. Effectivity Clause. This Act shall take effect after fifteen (15) from
the date of its publication in at least two (2) newspapers of general circulation

Approved


‘SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 2967
EXPLANATORY NOTE

The government is tasked by the fundamental law of the land to be the
guardian and custodian of our country's natural resources. This includes care
of our marine resources.

Just last August, a recent oil spill in Cavite occurred which was
determined by Philippine Coast Guard divers to have come from a leak in a
submerged pipeline of oil firm Petron Corp. and which turned parts of Manila
Bay red and adversely affected at least four coastal towns in the province.

Also last August 16, MV Saint Thomas Aquinas 1 collided with the MV
Sulpicio Express Siete which produced an oil spill that affected Cordova town.

These recent tragedies resulted in damage to our waters which this
legislative measure hopes to answer. This bill aims to institute a mechanism
for the prevention, abatement, mitigation and control of oil pollution within the
territorial boundaries of the country.

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

sought.
RUFUS B. Be

MAXIMO B. Me. JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

2967

House Bill No,

AN ACT
CREATING THE OIL SPILL LIABILITY FUND

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

SECTION 1. Title. This Act shall be known as the “Oil Spill Liability Fund
Act of 2013",

SEC. 2, Statement of Policy. It is hereby declared the policy of the State to
prevent, abate, mitigate and control the pollution by oil and oily mixture of the
seas within the territorial jurisdiction of the Philippines

SEC. 3. Definition of Terms. As used in this Act’

(a) "DENR" means the Department of Environment and Natural
Resources;

(b) "Discharge in relation to oil or to an olly mixture means any
discharge or escape or spillage, however caused;

0) "Fund" means the Oil Spill Liability Fund;

(d) "LGU" means Local Government Unit;

(e) "MARINA" means Marine Industry Authority;

0) Oil" means oil of any kind or in any form including but not limited
to crude oil, fuel oil, heavy diesel oil and lubricating oil, oil refuse
and sludge;

@ "Seas" means the waters surrounding, between and around the
islands comprising the Philippine Archipelago;

(h) "vessel’ means every description of watercraft, or other artificial

contrivance used, or capable of being used, as means of
transportation on water except;

0) Ships which are, or for the time being used as naval auxiliaries;
and
0) Ships of under 500 tons gross tonnage;

SEC. 4. Creation of the Oil Spill Liability Fund; Manner of Constitution. There
is hereby created an Oil Spill Liability Fund to be managed and administered
as a Trust Fund by the Department of Environment and Natural Resources
(DENR). The Fund shall be sourced from contribution of owners and
operators of tankers and barges hauling oil and/or petroleum products in
Philippine waterways and coast wise shipping routes. During its first year of
existence, the Fund shall be constituted by an impost of ten centavos per liter


for every delivery of transshipment of oil made by tanker barges and tanker
haulers. For the succeeding fiscal years, the amount of contribution shall be
jointly determined by the DENR, other concerned government agencies, and
Tepresentatives from the owner of tanker haulers, and ship hauling oil and/or
petroleum products. In determining the amount of contribution, the purpose for
which the Fund was set up shall always be closely considered

SEC. 5. Purpose of the Fund. Amounts in the Oil Spill Liability Fund shall be
available for purposes of making expenditures for the payment of clean-up
and/or removal cost and natural resources damage assessments and claims
as determined by the Department of Environment and Natural Resources
(DENR) and administrative expenses related to such costs, assessments and
claims caused by or occasioned by any ship, tanker, vessel, tanker barge or
any other watercraft as understood in this Act which accidentally or otherwise
discharges oil or oily mixture on waters subject to the jurisdiction of the
Philippines; Provided however, that the assessment or claim made by the
DENR of the natural resource damage caused by an oil spill shall be payable,
without need of demand, to the Local Government Unit (LGU) within whose
territorial jurisdiction are situation waters affected by the oil spill, Provided
finally, that the Fund for containment, recovery and removal or clean-up if
soiled oll or oily mixture in waters within the territorial jurisdiction of the
Philippines

SEC. 6. Limitation on Expenditures. The maximum amount which may be paid
from the Oil Spill Liability Fund with respect to -
i removal costs resulting from a single incident shall not exceed
P5,000,000.000 and
ii, natural resource damage assessment and claims in connection
with any single incident shall not exceed P2,500,000.00,

SEC. 7. Liability of owners of Ships, Tanker Barges and Tanker Haulers for
Oil Spill Limited to Contribution in the Fund. The liability of owners of tanker
barges and tanker haulers or of ships or watercraft as understood in this act
for any oil spill or natural resource damage however caused or occasioned
shall be limited to their contribution to the Fund.

SEC. 8. Responsibility for Physical Removal and/or clean-up of Oil Spills.
Without prejudice to the right of the DENR to engage the services of a private
contractor, the Philippine Coast Guard, using available funds from the Oil Spill
Liability Fund shall be the agency primarily responsible for the physical
removal and/or clean-up operations of oil spills.

SEC. 9. Repealing Clause. All laws, rules and regulations, inconsistent with
this Act are hereby repealed or modified accordingly.

SEC. 10. Effectivity Clause. This Act shall take effect after fifteen (15) from
the date of its publication in at least two (2) newspapers of general circulation.

Approved,