NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE OF REPRESENTATIVES

- Introduced by Representative Rufus B. Roche
House Bill No. 2302

EXPLANATORY NOTE

'n the water sector, the most urgent need is probably the upgrading of the water utilities
cutside Metro Manila. While people in the provinces now have more and better roads,
slectricty, telephones, cable TV, etc., very few have piped drinking water and sewerage
systems.

‘The main responsibility for this task lies with the Local Water Utilities Administration
(LWA), The realty, however, is that the capital requirements of the water sector are so large
that the LUA is unable to fulfil its mandate. LWUA depends on government funds, which
are limited, as well as ODA funds which are likewise limited.

An alternative source of financing for water utilities is the private sector. In the case of
the MWSS, the government was able to pass on all the financing burden to the private sector,
together with huge responsibilities for expanding and improving the system, while lowering
tariffs and significantly increasing government tax revenues through VAT and income tax.

The main difficulty in privatizing water utilities in a similar way as the case of MWSS
(Le. through a concession) is the question of financial regulation, The rules are presently
vague as to whether jurisdiction lies with the LWUA, NWRB or even LGUs. Also, it requires a
Gifferent set of skills to properly regulate privatized water systems and we need to develop this
in order to entice foreign investments

The main objectives of the proposed bill are to ensure universal access to water supply
and sanitation services, and to encourage responsibie private sector participation, fostering
‘and prioritizing infrastructure and public works that adopt innovative solutions and international
best practices to address the challenges of climate change. The bill also creates a Department
of Water Resources to 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,
Sustainability and protection of water resources in the Philippines except fisheries and
aquaculture.

In view of the foregoing, immediate approval of this measure is earnestly requested.

oe



NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus B. Rodriquez
House Bill No, 3302

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

8e it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled.
CHAPTER!
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the “National Water Act’.

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

It is hereby declared the policy of the State to ensure the provision of safe, adequate,
affordable, and sustainable water supply and improved sanitation services, while mai
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 responsibie 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.

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

(@) Bulk water supplier refers to any entity, natural or juridical, whether public or private,
Supplying or intending to supply large quantities of raw or treated water to buyers who
will use these for their own consumption, such as industrial 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 refiect the economic functions of providing natural resource inputs and space
for production and consumption, and (c) consumer or consumption services which
provide for physiological as well as recreational and related needs of human beings.

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

(@) Flood Risk Management (FRM) refers to such acts of defining and determining the
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of
incurring loss of both life and property due to flood waters. Flood risk management


consists of a cycle of prevention, mitigation, adaptation, Preparedness and early

warning, and response and recovery. The elements of FRM include: integrating lanc-

use planning and coastal zone management into water management; adopting a

holistic approach so that FRM is part of wider risk or multi-hazard Management of

earthquakes, landslides, and storm surges; managing risk and uncertainty as a whole

0 it not only mitigates hydrological uncertainties but also social, economic and political

uncertainties on account of human behavior and the cultural dimensions of FRM

(e) Gender Equality 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,

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

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

(h) Levels of water supply refer to communal sources of water described according to
location and size of the recipient human settlement as follows:
aM Level | or the point source is a protected well or a developed spring with an outlet

but without any distribution system, generally adaptable to rural and upland areas
where -houses are thinly scattered, and is a facility which usually serves an average
of 15 households,

(2) Level Il or the communal taucet system or stand posts is @ system composed of @
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 Ill or the waterworks system or individual house connections is a ‘system with
@ water source, a reservoir, a piped distribution network and household taps,
‘suitable for densely populated urban areas.

(0) License refers to the Water Supply andior 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 or 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 shail also
include a water infrastructure development program or all waters of the country as welt
as provide general guidance on how this shall be supported within an integrated

ing 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 effluent discharge of an industry

(n) Regulatory Units refer to the offices established under Section 20 of this Act which
issue licenses authorizing the operation of Water Supply and Sanitation Services, and


Provide, review, determine, fix, and approve water and ‘sewerage tariffs, rates, and
Charges that licensees may impose.

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

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

(q) Sanitation reters to the provision of facilities and services for the safe management of
human excreta, from tollet to containment, and storage and treatment onsite or
conveyance, treatment and eventual safe end use or disposal, and includes the safe
management of solid waste and animal waste.

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

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

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

(4) Seplage Management refers to the provision of proper collection, treatment, and
disposal of septage

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

(w) Service Provider refers to any entity, natural or juridical, whether private or public,
Providing or intending to provide levels il & Ill water supply, including bulk water
Suppliers. sewerage, septage treatment, and disposal services for domestic,
tesidential, industrial, or commercial use.

(») Sewage refers to water borne human or animal wastes, excluding oil or oil waste,
removed from residences, buildings, institutions, and industrial and commercial
establishments together with such 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.

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

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

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

(bb) Taniffs refer to such amounts which may be charged by 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
(1) Reduce the quantity or quality of water required to accomplish a specific task:

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

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

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

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


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

(ee) Water pollution reters to any alteration of the Physical, chemical, biological, or
fadiological properties of a body of water resulting in the impairment of its purity or

quality.

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

(99) Water Resources Regions 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 straddle different local government
units, for administrative purposes under the Department of Water Resources

(hh) Water Service Provider (WSP) refers to the water district, any Local Government Unit
(CGU)-run water utlty, 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.

(\) Water supply service refers to any activity comprising Levels |, i! and Il! water supply
including bulk suppliers, suppliers to subdivisions, and other water service providers,

CHAPTER Ii
THE DEPARTMENT OF WATER RESOURCES

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

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

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

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

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

(a) Update and take the lead in the overalt implementation of the Pasig River
Rehabilitation Master Pian, 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 laws
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 omissions in violation of Presidential
Decree (PD) No. 984, s. 1976, as amended entitled, Providing For The Revision


Of Republic Act No. 3931, Commonly Known As The Pollution Controt Law, And
For Other Purposes, PD No. 274, s. 1973 entitled, Pertaining To The Preservation,
Beautification, Improvement And Gainful Utilization Of The Pasig River, Providing
For The Regulation And Control Of Pollution Of The River And its Banks in Order
To Enhance its Development, Thereby Maximizing Its Utilization For Socio-
Economic Purposes, and other related laws,

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

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

(©) Access to safe water supply and improved sanitation 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 (IEC) programs,
assessment and allocation tools, or regulatory functions. It shall observe the mutual
accountability mechanism among stakeholders at the national, regional, and global
levels reinforcing mutti-stakeholder decision-making following a framework with
Specific, measurable, attainable, relevant. and timely actions,

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

(e) 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 thet 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

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

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

‘SEC 7. Objectives of the Department, - The Department shall:
{a) Promote and adopt water demand management as a national policy to ensure that
water is optimized, that water efficiency and conservation become a way of life, that
the recycling and reuse of water and treated wastewater are widely practiced, that


water is properly priced to encourage efficient use and conservation and that rainwater,
flood waters, and run-offs are captured or harvested, stored and treated for future use;

(b) Prioritize and seek the immediate attainment of universal access to safe, adequate,
affordable and sustainable water supply and improved sanitation services for all
Filipinos in a manner consistent with the protection, preservation, and revival of the
quality of the country’s water resources, and to adopt all needed measures to advance
the right of the people to a balanced and healthful ecology in accord with the rhythm
‘and harmony of nature.

(c) Strengthen and coordinate integrated water resources management planning and
Policy making to ensure sustainable and fair allocation and efficient use of water
resources among competing uses and users;

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

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

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

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

(h) Develop a standardized pricing framework for water use those accounts for
environmental externalities, and

(i) 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
Gisposed of following approved environmental standards.

SEC.8. Powers and Functions of the Department. ~ The Department shall have the following
powers and functions:
\.Policymaking and Planning
(a) 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;

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

(c) Formulate and develop policies to promote universal access to safe, adequate,
affordable, and sustainable water supply, and improved sanitation services for ali
Filipinos:

{d) 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
framework and integrate therein a national land use plan;

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

(9) Conduct continuing hydrological and hydrometeorological surveys and studies of the
country's renewable water supply, and establish, operate, and maintain observation
station networks with a view towards formulating long-term policies to balance


the sustainability and optimal multiple use of water resources, defining the hydrologic
boundaries of basins of the existing water supply sources and developing or updating
and implementing countrywide comprehensive basin-wide master plans;

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

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

() Review, approve, and provide oversight over all water-related development plans and

programs of any agency within the context of the NWRMP, and overaill national plans

and programs;

Develop and implement, in coordination with other relevant a Jencies, effective codes,

standards, benchmarks, and reasonable guidelines to ensure the safety of all public

and private water structures in the country, and assure efficiency and proper quality in
the construction of water, sanitation, irrigation, hydropower, flood control and drainage
infrastructure;

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

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

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

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

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

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

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

@

I.Resource Regulation

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

(b) Regulate and contro! the utilization, abstraction, diversion and development of water
resources, taking in consideration their equitable distribution among competing


demands and determine the standards of beneficial and priority uses of water in times
of crisis and national emergencies:

(c) Formulate, promulgate, and enforce rules and regulations for the development and
Optimum use of water resources and its administration and management, including
coherent water protocols, operating rules of all existing and future water Infrastructure:
general criteria, methods and standards for basic data collection and project
identification, formulation and planning, and appropriate sanctions to be imposed for
non-compliance;

(a) 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;

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

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

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

3. Appropriate payment structures for environmental services:

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

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

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

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

@) Develop and continuously update a computerized decision ‘support system that
incorporates data management systems relating to acquisition and database, model
base in terms of physical design, planning and decision models, and user-inendly
interface concerning graphical and visualization tools,

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

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

Hil, Institutional Arrangement with Public Water Organizations

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

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

{c) Authorize its representatives or any deputized agent to enter any Property of public
‘dominion with or without prior notice and consent, any private land, building or enclave,
whether inhabited or not, for the purpose of conducting hydrologic surveys and
investigations, including assessing and evaluating the conditions of water facilities
installed, and determining compliance with water laws 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,

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

(a) Appoint, hire, and maintain adequate staff and personnel, advisers or consultants with
Sutable quaifications and experience, as necessary, subject to existing rules snd
regulations,

!V.Coordination
(a) Coordinate and integrate water resources development activities of the ‘country within:
the context of national pians and policies for ‘Social and economic development;
(b) Coordinate with other government agencies, universities, academe and Private

Gperating strategies, procedures, and protocols and accompanying computerized
decision tools for major water facilities;

(6) Coordinate with the concemed and relevant agencies engaged in flood control, flood
risk management, and drought risk management: and

(@) Coordinate proactively with LGUs to ensure the integration of water resources
Gevelopment plans into their comprehensive land use plans (CLUPs), Comprehensive
Development Plans (CDPs) or Provincial Physical Framework and Development Play
(PPFOP).

V. Other Functions

(a) Create when necessary, water resource subsidiaries, instrumentalties, and entities to
engage in water transmission, water distribution, waste water treatment and
management, and sanitation in accordance with existing relevant jaws.

(©) 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 terme
find 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.

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

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

(b) Establish the policies and standards for the ‘Operation of the Department pursuant to
the President's guidelines;

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

(@) Exercise supervision and control over all bureaus and offices under the Department;

(2) Supervise all attached agencies and corporations in accordance with law.

(f) Represent the Department in contracts, awards, and other similar agreements;

(9) Delegate authority for the performance of @ny power or function, as defined herein to
officials and employees under his direction as deemed appropriate:


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

Department;

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

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

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

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

The Secretary is hereby authorized to delineate and assign the respective functional
areas of responsibility of the Undersecretaries in accordance with the mandate and objectives
of the Department: Provided, That no Undersecretary shall be assigned purely to
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

{c) Perform such other functions deemed necessary as may be assigned or delegated by
the Secretary to promote efficiency and effectiveness in the delivery of public services
oF as may be required by law: Provided, That the Undersecretary for Planning and

Policy shail, in coordination with the Planning and Policy Service, be

Primarily responsible for advancing current efforts in attaining the ultimate goal of

universal access to water supply and sanitation systems, and sustainable

management of water resources under the SDGs, and the integration of water, energy,
environment and food security,

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

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

SEC. 13. Organizational Structure. - The Department shall be composed of the following
organizational units:

(A) Department Proper. - The Department shail 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, Comptroliership and Financial Management Service, Resource
Regulation Service, and the Water Resources Regional Offices.


(8) 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

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, the LWUA shall
(i) prescribe minimum standards and regulations in order to assure acceptable
Standards of construction materials and supplies, maintenance, operation,
Personnel training, accounting and fiscal practices for local water utlities;
(i) furnish technical assistance and personnel training programs for local water
utilities;
(iti) 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 Sec,
22, Presidential Decree No. 768.
(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate,

the concessionaires of their Fesponsibility; carry out accounting and notification
functions; monitor, report, and administer loans; perform related functions in
Connection with existing projects; manage and dispose its retained assets; and
manage and operate the Umiray-Angat Transbasin Project.

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

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

The LLDA shall continue to serve as the lake management and development
authority similar to @ multi-stakeholder river basin organization and shall ensure
the implementation of the Laguna Lake Master Plan which Shail be updated by the
Department to ensure alignment with the NWRMP_
Any other agency performing water resources management, conservation and protection
functions may be transferred to the Department as the President deems necessary.

(C) Offices. Funetions and Personnel to be Completely Subsumed under the Department
= The following offices with their powers, functions, personnel, applicable funds. and
appropriations, records, equipment and property shall be subsumed under the
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) 2011-01 to
Coordinate the efforts of the fourteen (14) national agencies covered by the
Mandamus Order of the Supreme Court to rehabilitate Manila Bay;

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

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

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

{D) Functions to be Transferred to the Department. ~ The following functions of the respective
agencies, bureaus, and units shall be transferred to the Department:
(1) The hydrological surveys and groundwater mapping function of the Mines and
Geosciences Bureau (MGB) of the DENR:
(2)The hydrological surveys monitoring of stream flow and water data collection
function of the Bureau of Design and Bureau of Research and Standards of the
DPWH;

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

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

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

(6)The Water Resource Management Division and the water research functions of the
Solis 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.

(E) 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 functions:

() Advise the Secretary on all matters relating to water resources planning:

(ii) Assist the Undersecretary for Pianning and Policy on all matters related to
the specific functions of the position;

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

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

(¥) Coordinate river-basin planning following the integrated water resources
‘management framework and the river-basin approach;

(vi) Formulate or update existing River Basin Master or Comprehensive Plans

which includes all aspects of water management and development such

‘88 water supply and sanitation, irrigation, flood control and stormwater or

urban drainage, drought risk management, water resource development

systems and other public water works projects, including phasing of
ion;

(vii) Identify, based on the river basin master plan, priority packages for water
infrastructure development per river basin, including water supply,
Sanitation, irrigation, flood control and stormwater or urban drainage,
drought risk management, water resource development systems and other
Public works projects, package project proposals for funding and prioritize


(viii)

(ix)
()
(xi)
(xii)
(xiii)

(xiv)

(xy)

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 ang the regional offices as needed;

Conduct hydrological and hydraulic surveys and assessments of ‘surface
waters;

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

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

Coordinate closely with PAGASA for rainfall and other climate data which
shail 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
Bhysical design, planning and decision models including services related to networking,
data management, and information and knowledge or learning management systems for
administrative

non-technical support It shail provide the Secretary timely reports on

the status of various Department projects and activities. For this purpose, it shall exercise
the following functions:
(@) Provide the Secretary the necessary data and processed information to aid

Gi)
(iii)

(iv)

”

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 andior electronic form, standard data analysis
such as basic statistical analysis, trend analysis, analysis of runs, and cluster

Develop and continuously update water resource ment,

Computerized decision support systems (DSS) that incorporate data

management systems relating to acquisition and database, 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) @ measurement or data acquisition system; 2)

information or database management system; 3) analytical and numerical

modeis 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.

a) long-term climatologic and weather forecasting model;

b) watershed models and river-flood plain models;

¢) groundwater models and coupled to surface water models;

d) flood forecasting model for major rivers:

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


1) water quality and ecological models.

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

8) Retrieve, process, and monitor information on all projects and activities in

the web portal:

5) Conduct and apply systems and process engineering, software

development, software configuration management,

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

Develop and manage its Information and Communications Technology
(ICT) infrastructure and ICT related-services including computer
networking and voice communications services and data exchange, and
®) Manage the literacy and training services of the Department on various
ICT and, Knowledge Management (KM) tools and applications, including
information and knowledge management
(vii) Perform such other related functions and activities which are necessary for
the effective administration of the management information and knowledge
systems of the 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:

(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
fotation, incentive awards systems, and health and welfare services,

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

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

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

{vi} Coordinate with the appropriate government agencies for a more efficient

Conduct of administrative processes;

(vil) Develop, establish, and maintain an efficient records system;

(iii) 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

{ix) Perform such other related functions and activities which are necessary for

the effective management of the resources of the Department, including its
human resources,

d

(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, complaints
and investigation, legal counselling and other matters of law, and shall exercise the following
functions:

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


(ii
fo)
(iv)
0)

(vi)

(vii)

(viii)

(ix)

&)

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 employees of the Department;
Exercise functional jurisdiction over the legal 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 urgency of priority water bills, and other water-
related legislation;
Coordinate and maintain linkages between and among the various offices,
bureaus, regional offices and attached agencies to the Department along with
other government agencies on policy matters affecting the Department's
‘mandate in relation to legislation;
Perform liaison and networking activities in relation to the enactment of related
laws relating to water resources issues in legislative policymaking bodies such
as the Senate of the Philippines, the House of Representatives, and the
various Sanggunians;
Monitor the progress of the Department's priority or certified bills to ensure
their passage; and
Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

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

a

(ii)

(ii)

(iv)

Ww

(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 appropnate reports to the proper
offices;

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

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

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

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

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

functions:

(i
Gi)

Gil)

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


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

(v) Adjudicate water use conflicts; and

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

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

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

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

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

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

(») 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 be
Consulted, organized and take active part in 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
a) Advise the Secretary on matters pertaining to public affairs;
b) Develop and supervise the implementation of ‘comprehensible
communications programs on relevant policies, programs and plans of the
Department;

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

information programs;
) Conduct public opinion and attitude surveys to identify the interests and
concems of the stakeholders of the Department;

©) Establish policies on the presentation and publication of the content of the
communication materials for dissemination to print and broadcast media;
£) Establish and maintain linkages with the tri-media and a presence in social
media,

8) Coordinate the conduct of interviews and news conferences;

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

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


J) Coordinate with the appropriate national government agencies involved in
public information affairs.
(i) Promote Participation
a) Conduct public consultations and discussions;
5) Develop and disseminate relevant and appropriate materials and
Programs for public information and education, as well as advocacy
campaign;
©) Conduct seminars and workshops involving the LGUs and the generat
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,
evelopment and implementation of various programs and projects.
(iit) Special Events
8) Coordinate the organization and promotion of special events and water
exhibits;
4) Act as the focal office for all water related events; and
© Perform such functions and activities, as may be mandated by law, which
are necessary for the effective performance of the abovementioned
objectives,
(F) Bureaus. ~ The Department shail create bureaus which shall each be headed by a Bureau
Director. The Bureau Director shail 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 manuale.
For this purpose, it shall have the following duties and responsibilities.
(i) Formulate policy, strategies and programs on flood risk management in the
Context of integrated flood management (IFM) which integrates water, land,
coastal Zone and multi-hazard management. In integrating land use pi
and water management, the Department shall harmonize and synthesize plans
fo enable the sharing of information between land-use planning and water
management authorties. In this regard, a holistic approach shall be adopted by
making the IFM a part of a wider risk or multi-hazard management system that
includes earthquakes, landslides, fires, tsunami. and other calamities of the
same gravity or nature;
(fi) Integrate climate change and disaster risk reduction and management in
i plans:

policies and

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

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

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

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

(vii) Implement and collaborate with concerned agencies on the formulation and
‘adoption of non-structural measures for flood contro! and drainage

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

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

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

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

drainage structures;

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

(xiii) Advise the Secretary on declaring flood control areas and recommend

guidelines for flood plain management plans in these areas; and



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

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

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

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

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

(iv) Prepare an integrated water quality management framework:

(») Prepare the ten-year water quality management plans for each water quality
management area as part of the River Basin Master Plans and in support of
the NWRMP:

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

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

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

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

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

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

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

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

(xiv) Serve as secretariat of the WPAB; and

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

(3) A Water Resources Regional Office (WRRO) shall be organized per water resources
Fegion 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 fesponsibility of the Department. Each WRRO shall
perform the following duties and responsibilities:

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

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

(iii) Undertake and evaluate the planning, design, and work ‘Supervision functions
of the Department for the water infrastructures within the region,

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

(¥) Provide technical assistance related to the water-related functions of other
agencies within the region especially the local government:



(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, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

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

Each Water Resources Regional Office shall be headed by a Water Resources
Regional Director who shall be responsible for efficiently and effectively carrying out the duties
and responsibilties of the Office. Towards this end, the Water Resources Regional Director

may be required by law.

The Water Resources Regional 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,

‘SEC. 14. Water Pollution Adjudication Board. - There is hereby created @ Water Poliution
Adjudication Board under the Office of the Secretary. The Board shail be ‘composed of the

Commonly Known as the Pollution Control Law, And For Other Purposes, particularly with
Jasbect to Section 6 leters e.g, j,k and Republic Act No. 9275. The Bureau of Water Quality
Management shall serve as the Secretanat 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 Ii
INTERDEPARTMENTAL RELATIONS AND INSTITUTIONAL ARRANGEMENTS OF THE
DEPARTMENT

SEC. 15. interface and institutional Arrangements with Other Agencies. ~

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;


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

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

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

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

(9) 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 government agencies, including local
government units (LGUs), with respect to development projects and shall 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.

SEC. 16. National Water Sector Policy Board. ~ The National Water Sector Policy Board
(NWSPB) shall be created and shall be headed by the ‘Secretary of the Department of Water
Resources with the Secretary of the National Economic and Development Authority 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.

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

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

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

(©) 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;

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

SEC. 18. Transfer of Rights and Obligations. - The Department shail, by virtue of this Act, be
Subrogated to all the rights and assume ali the obligations of the government agencies and
units whose powers and functions have been subsumed, absorbed, transferred or attached to
the Department.in accordance with the rules and regulations of the Commission on Audit, and


the Civil Service Commission, and other applicable laws. The transfer of powers and functions
as herein provided shall take effect within six (6) months of the effectivity of this Act. As such,
alll affected agencies, offices, units shall continue to function under their present mandates.

CHAPTER IV
WATER REGULATORY COMMISSION

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

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

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

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

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

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

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

The Commission shall exercise the following powers and functions:

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

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

(¢) 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. Upon finding that
@ 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 and require that books, records, and accounts be kept and maintained in
accordance with the prescribed uniform accounting system;

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

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

(a) Require the submission reports of finances and operations, verified under oaths by
the owner or president and secretary of the board of the licensee:


(h) Determine and require the monitoring and submission of such data, statistics and
other information from the segulatory 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 or upon a written complaint, any matter concerning the
Operation of the service and issues on price manipulation and anti-competitive

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

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

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

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

(a) Appoint an interim or temporary management committee upon appeal and after
due hearing, to ensure continuity of service in case a licensee fails to meet
Conditions of the license and the concemed Regulatory Unit fails or refuses to
appoint an interim management committee as provided in the following section.

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

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

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

SEC. 22. Powers and Functions of the Regulatory Units. - The regulatory units of the
Commission shall have the following powers and functions:
(a) Issue licenses authorizing the operation of water supply and sanitation services in
‘any specified area or areas within the Philippines,

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

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

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

(©) 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 motu 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;

(h) 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

(e)


Petition or motu propio where in its determination public interest so dictates;
(i) Require the submission of reports, Plans, and other documents that define the
targets of the licensees or utiities, and regular accomplishment
reports;

@) Impose and collect annual levies determined as a percentage of gross revenue
accruing in relation to the licensed activities, and reasonable fees and surcharges
a8 may be necessary for achieving the Purposes, powers, and functions of the
regulator;

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

(1) Amend, modify, suspend, or revoke any license issued by them, after due notice
‘and 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;

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

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

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

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

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

(@) The Commission shail be @ collegial body composed of five (6) full-ime members
Consisting of a Chairperson and four (4) members, who shall ali be appointed by the
President of the Philippines. All members of the Commission must be ciizene 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,
uth at least three (3) years of actual and distinguished experience in their respective
fields of expertise: Provided, That out of the four (4) members of the Commission, at
least one (1) shall be a member of the Philippine Bar with at least ten (10) years of
xberience in the active practice of law, and at least one (1) shall be a certified public
accountant with at least ten (10) years of experience in active practice

(b) The term of office of each member of the Commission shall be seven (7) years:

Provided, That among the members first appointed, the Chairperson shall serve for
@ Period of seven (7) years, two (2) members shall serve for five (5) years and the
other two (2) members shall serve for three (3) years: Provided further, That any
member whose term has expired as specified herein shall serve as such until »
Successor shail have been appointed and qualified: Provided furthermore, That any
appointment to fill a vacancy 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 serve for more than seven (7) years in the
Commission,

(c)The Commission shall meet as often as may be necessary on such day or days as
the in 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,
ecisions, or other act of the Commission in the exercise of its quasi-judicial functions


Provided, That in promulgating rules, regulations, guidelines and in exercising its
uasi-legislative functions, an affirmative vote of three (3) members shall be required.
(d) The Chairperson of the Commission shall exercise general executive control and
supervision over the Commission and its members, staff and personnel, agents and
representatives. Within three (3) months from the creation of the Commission and
the appointment of all Members of the Commission, the Chairperson shall determine
and establish the organizational structure and plantia positions necessary to carry
out the powers and functions of the Commission, including those of the central and
provincial regulatory units subject to the review and approval of the DBM
The plantilla positions of the Commission shall be filled by regular appointments in
accordance with Civil Service laws, rules, and regulations. Members of the
Commission shall enjoy security of tenure and shall not be suspended or removed
from office except for just cause as specified by law.

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

‘SEC. 24, Secretariat of the Commission. ~The Commission shail establish a Secretariat which
shail provide the Commission with technical and support services including the following:
(#) Provide the necessary technical inputs and secretariat support to the Commission to
facilitate the conduct of its functions;
(b)Coordinate with Regulatory Units to ensure proper implementation of the rules,
regulations and guidelines promulgated by the Commission;
{c)Monitor and assess activities of the Regulatory Units vis-a-vis their respective annual
performance plans and targets;
(d)Maintain a database on the water supply and sanitation ‘subsector; and
{c)Coordinate with other relevant agencies of the national or local government on any
matter relating to water supply and sanitation

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

The Executive Director shall be responsible for the effective implementation of the
Policies, plans, programs, rules, regulations and directives of the Commission; coordinate and
Supervise the activities of the different operating units under the Commission; and perform

such functions as may be assigned by the Chairperson and/or other members of the
Commission.

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

CHAPTER V
REGISTRATION AND LICENSING

SEC. 27. Registration and Licensing of All Water Supply and Sanitation Services. - All water
supply and sanitation service providers, including bulk water suppliers and those providing
‘Services to subdivisions and other service providers, shail 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 dictates,

SEC 28. Conditions of License. ~ The Commission or the concemed regulatory unit, may
Impose such conditions on the licensee as it may deem necessary, such as:
(a) Tariffs, rates and charges that may be imposed from its customers or consumers.
(b) Term fixing the duration of the privilege,
(ce) Grounds for modification, suspension or cancellation of the License.
(d) Minimum technical performance and service level standards.
(e) Expansion targets and service level improvements over time.
@ i or conditions for transferability of the business or controlling interest in
the business.
(g)Reportoria! requirements and obligations of the grantee.
(h) Submission to annual performance audit by the Commission or its duly authorized
representative(s).

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

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

SEC. 29 Rights and Duties of Licensees. —
{A) Any person granted a license under this Act shall have the obligation to ensure that
licensed activities are conducted to further public interest and, in particular

() Foster the maintenance and development of efficient, Coordinated, and viable
operation of their licensed activities:

(2) Ensure that their water ‘supply and sanitation services are Provided in a diligent,
Conscientious and workman like manner, in accordance with applicable laws
fules 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.

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

{C) Subject to any condition or limitation laid down in the license, a licensee may discontinue


water supply and sanitation services to a customer if such customer defaults in the payment
Of fees due to the licensee for the water supplied or sanitation services Provided, or for acts of
pillerage pursuant to Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as
the Water Crisis Act of 1995.

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

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

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

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

(4) Maintain and upon request by anyone during regular office hours, promptly make
available for scrutiny and inspection such data, statistics and other information, as
may be required by the Commission.

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

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

(a) Reasonable and prudent capital and recurrent costs of providing the service

including @ reasonable rate of return on capital;

(b) Efficiency of the service;

(a) Incentives for enhancement of efficiency;

(b) Willingness to pay of the customers/consumers;

(c) Equity considerations: and

(d) 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,

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

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

CHAPTER Vi
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION


SEC. 33. Proceedings Before the Commission, - For the purpose of any investigation, inquiry
OF proceeding, the Commission shall:
(a) Issue subpoena duces tecum and subpoena ad testificandum,
(b) 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 oF proceeding before the Commission,

SEC. 34. Orders and Decisions of the Commission. - Any order, resolution, or decisions of
the Commission shall be promulgated promptly, expeditiously, reasonably, and in writing, and
Shall state clearly and distinctly the facts and law on which 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,

SEC. 35. Appeals Procedure and Prohibition Against Injunction. ~

(2) 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 tatits, 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
ecision 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
8 defect or irregularity in, or in connection with, the appointment or vacancy in the
Office of the Chairperson or any other member of the Commission

CHAPTER Vil
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

SEC. 36. Interface with Other Sector Regulators. —

(2) 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 fegard. The
Department of Health (DOH) shall continue to exercise Primary jurisdiction over the
determination and enforcement of standards for quality drinking water and
sanitation.

(b} The Commission shall coordinate with the:

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

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

(3) Department of Public Works and Highways for flood control and harnessing and
impounding of water,

SEC. 37. Transfer of Rights and Obligations. - The Commission shall, by virtue of this Act, be
Subrogated to all the rights, and assume ail the obligations, of the Water Utilities Division of
the NWRB, the regulatory offices of MWSS and LVWUA, 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,

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, personnel,
records, property and equipment, as may be necessary. The same shall apply to agencies
which have been attached to the Department by virtue of this Act.

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

All rights and obligations of the affected agencies are hereby transferred to and

by the Commission, and shall be acted upon in accordance with the rules and
regulations of the Commission on Audit and other pertinent laws, rules, and regulations

SEC. 38. Absorption or Separation from Service of Employees of the Subrogated Agencies. —
The current employees of the Water Utiities Division of the NWRB, the regulatory offices of
MWSS and LWUA, the regulatory units of all special economic zones, and all other
government agencies and units whose powers and functions have been transferred to the
Commission shall enjoy security of tenure, and shall be absorbed by the Department, in
accordance with their staffing pattern and the selection process as prescribed under Republic
Act No. 8856 or the Government Reorganization Law.

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

SEC. 39. Water Trust Fund. ~ There is hereby created @ 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 shaft
be accounted separately from the government's general revenues and shall be automatically
appropriated to the Department. Proceeds from the trust fund shall be utilized for water
development, water sanitation and waste water treatment and management, and water
sustainability programs and projects authorized under this Act: Provided, That a maximum of
ten percent (10%) of the total income generated from raw water extraction shall be given as
share of the concerned local government unit or indigenous peoples (IP) community who own
the specific areas or land where the raw water was sourced.

CHAPTER Vill
FINAL PROVISIONS.

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

Sec. 41. Transitory Provisions. ~ Performance audit of all water-related agencies and
institutions, including LUA and water districts, MWSS, MWSS-RO and its concessionaires,
{GU-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.

SEC. 42. Appropristions ~ The amount necessary to cover the initial implementation 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 as may be necessary for the continued
implementation of the Act shall be included in the annual GAA.


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

SEC. 44, Separability Clause. — if any reason, any portion or provision of this Act ‘shall be held

unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be
in full force and effect.

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;

Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order No.
paki ated 30 January 1987, Reorganizing the Department of Public Works ang Highways,
Redefining its Powers and Functions, and For Other Purposes on renaming and reorganizing
the National Water Resources Council into the National Water Resources Board

amended, otherwise known as the “Local Govemment Code of 1997" and ite implementi
piles anc regulations on the power ofthe local government units to fx the rates of water ceases
motte erated and maintained by them within their jurisdiction is hereby reposieg
modified accordingly

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

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

5) Sections 7 and 8 on the adjudication of water pollution cases under Republic Act
No. 3931 entitled, An Act Creating The National Water And Air Pollution Control Commission,
particularly with respect to Section 6 letters e, k Presidential Decree 984 entitied,

r Commonly Known as the Pollution

5;
§) Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the “Philippine
Clean Water Act of 2004";



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

8) Sections 9, 10, 11, 12 and 13, Chapter II 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 Departmen ot
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.

SEC. 46. Effectivity. ~ This Act shall take effect fiteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation,

Approved,