Republic of the Philippines
Bouse of Representatives
Quezon City

Fifteenth Congress

First Regular Session

1233

House Bill No.

Introduced by Honorable Winston T. Castelo

EXPLANATORY NOTE

A comprehensive national land use policy is an essential factor in the country's pursuit
of growth and development. The fact that there appears to be an absence of such policy
partly explains our country's inability to move forward as it fails to justly provide for a
rational, holistic and just allocation and utilization, management and development of the
country's land resources that will truly ensure their optimum use consistent with the
principle of sustainable development.

The proposed measure aims to critically address this predicament with the
establishment of a “National Land Use Policy” that will institutionalize judicious and
effective land use through provision of appropriate implementing mechanisms and
strategies,

Through this measure, there shall finally be an adoption of a land use and allocation
pattern that promotes and ensures, among others, protection of prime agricultural lands,
rational population distribution and settlements, energy security or energy self
sufficiency through sustainable and priority development of indigenous energy
resources and an Integrated approach to the utilization and management of water as a
limited resource. emplement and support sustainable land utilization and


2" District, Quezon City

Republic of the Philippines

Bouse of Representatives
Quezon City

Fifteenth Congress
First Regular Session

233
House Bill No.

Introduced by Honorable

AN ACT
INSTITUTING A NATIONAL LAND USE POLICY, PROVIDING THE
IMPLEMENTING MECHANISMS THEREFOR, AND FOR OTHER PURPOSES.

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

CHAPTER!
INTRODUCTORY PROVISIONS

SECTION 1. Title. - This Act shall be known and cited as the "National Land Use
Act of the Philippines.”

SEC. 2. Declaration of Policies and Principles. - It is the policy of the State to provide for
a rational, holistic, and just allocation, utilization, management, and development of the
country’s land resources to ensure their optimum use consistent with the principle of
sustainable development. Toward this end, the State shall adopt a land use and
allocation pattern that promotes and ensures: Protection of prime agricultural lands for
food production activities and highest priority to the completion of the Comprehensive
Agrarian Reform Program (CARP); Food security in basic food commodities with
emphasis on self-sufficiency in rice and corn production through efficient and
sustainable use of land resources consistent with the principles of sound agricultural


development, natural resources development, and agrarian reform; Sustainable
development, management and utilization of natural resources,

and maintenance and preservation of environmental integrity and stability; Rational
population distribution and settlements development, Equitable and sustainable
economic growth, and balanced and dispersed industrial and tourism development
guided by the principles of agrarian reform, urban land reform, and rural development;
Energy security or energy self-sufficiency through sustainable and priority development
of indigenous energy resources; Harmony between the rights and the varied interests of
every Filipino within the framework of people empowerment, decentralization, social
justice, and equity; Respect and protection of the sustainable traditional resource rights
of the indigenous cultural communities/indigenous peoples (ICCs/IPs) to their ancestral
domains to ensure their economic, social, and cultural well-being as well as recognition
of the applicability of customary laws and sustainable traditional resource use and
management, knowledge, and practices in ancestral domains; Protection of the rights of
basic sectors to ensure equitable access to the country's land and other resources
through state regulation of land valuation to prevent uncontrolled land speculation
resulting in tremendous increase in land pricing; and an integrated approach to the
utilization, allocation, development and management of water as a limited resource that
will complement and support sustainable land utilization, and ensure water security. It is
also the policy of the State to institutionalize land use and physical planning as a
mechanism for identifying, determining, and evaluating alternative land use patterns.
This shall be supported by a national land use allocation system and a land resource
information and management system. Guided by the principle that the use of land bears
a social function and that all economic agents shall contribute to the common good,
landowners shall be held responsible for developing and conserving their lands thereby
making their lands productive and supportive of environmental stability. Multiple land
usage is also encouraged to optimize utilization of our, country's varied, but limited,
resources.

SEC. 3. Scope. - This Act shall apply to all lands whether public, private, or
government-owned, and/or in the possession of individuals, communities, or groups of
people, to guide and/or govern the use, allocation, and management of land resources.
including such activities which bear impact on said resources.

SEC. 4. Definitions. - As used in and for purposes of this Act, the following terms shall
mean:

(a) "Agricultural Lands” refer to lands devoted to or suitable for the cultivation of the soil,
planting of crops, growing of fruit trees, raising of livestock, poultry, fish or aquaculture
production, including the harvesting of such farm products, and other farm activities and
practices performed in conjunction with such farming operations by persons whether
natural or juridical and not classified by law as mineral land, forest land, residential land,
commercial land, or industrial land;

(b) "Agricultural Land Use Conversion” refers to the undertaking of any development
activities which modify or alter the physical characteristics of agricultural lands to render
them suitable for non-agricultural purposes with an approved order of conversion issued


exclusively by the Land Use Policy Administration upon the recommendation of the
Department of Agrarian Reform (DAR); .

(c) "Alienable and Disposable Lands" refer to lands of the public domain which have
been delineated, classified and certified as such and available for disposition under
Commonwealth Act No. 141, as amended, otherwise known as "The Public Land Act",
(d) "Ancestral Domains" refer to all areas generally belonging to indigenous cultural
communities/indigenous peoples (ICCs/IPs) as defined in Republic Act No. 8371,
otherwise known as "The Indigenous Peoples Rights Act of 1997" or "IPRA",

(e) "Comprehensive Land Use Plan (CLUP)" refers to a document embodying a set of
policies accompanied by maps and similar illustrations which represent the community-
desired pattern of population distribution and a proposal for the future allocation of land
to the various land-using activities, in accordance with the social and economic
objectives of the people. It identifies the location, character and extent of the area's land
resources to be used for different purposes and includes the process and the criteria
employed in the determination of the land use. It incorporates the protected areas
including the protected agricultural lands provided for in Sec. 33 hereof;

(f) "Comprehensive Land Use Planning" refers to the act of defining the allocation,
utilization, development, and management of all lands within a given territory OF
jurisdiction according to the inherent characteristics of the land itself and supportive of
sustainable, economic, demographic, socio-cultural and environmental objectives as an
aid to decision-making and legislation;

(g) "Coastal Area Zone" is a band of dry land and adjacent sea or ocean space (water
and submerged land) in which terrestrial processes and uses directly affect marine or
oceanic processes and uses, and vice versa. Its landward limit shall be two (2)
kilometers from the shoreline at highest high tide, to include mangrove swamps,
brackish water ponds, nipa swamps and estuarine rivers, and its seaward limit shall be
up to the 200-meter isobath, to include sandy beaches, coral reefs, algal flats, seagrass
beds and other soft-bottom areas;

(h) "Customary Laws" refer to a body of written and/or unwritten rules, usages, customs
and practices traditionally and continually recognized, accepted, and observed by
respective ICCs/IPs consistent with the PRA;

(i) "Development Plan” refers to a document which defines the activities or measures
that the national government or local government units (LGUs) intend to implement in
order to achieve a defined set of development goals. It integrates the socio-economic
and sectoral plans of the national government or its instrumentality or a particular LGU
with spatial plans such as land use or physical framework plans. It may include an
analysis of problems and resources, definition of goals and objectives, policy guidelines,
project and target achievements, and an implementation mechanism which defines the
roles and contributions expected from the government and the private sector.

() "Disaster-prone Areas" refer to areas frequently visited and/or prone to experience
weather/climatic, hydrologic, geologic and other natural calamities;

(k) "Ecologically-fragile Lands" refer to lands within the critical watershed, brackish and
freshwater wetlands, pasture lands and croplands which require rehabilitation and
whose continued unsustainable use would adversely affect the productivity of lowland
agricultural areas and the stability of the upland system and the viability of other areas;


()) "Energy Resources" refer to surface or subsurface substances, which serve as
energy sources. These are traditionally mineral fuel deposits such as coal, petroleum,
natural gas or resources from geothermal or hydro reservoirs, or non-conventional
sources such as ocean waves, solar, wind, biomass, and other similar resources which
serve the same purpose; ; _

(m) "Energy Resource Lands" refer to lands where naturally occurring or indigenous
energy resources exist in sufficient quantity or quality as to be economically viable for
exploration, development, production, utilization, and distribution purposes;

(n) "Environmentally Critical Areas" refer to areas declared by law or presidential
issuance as: (a) protected areas pursuant to Republic Act No. 7586 or the "NIPAS Act
of 1992"; (b) areas for watershed reserves; (c) areas set aside as aesthetic potential
tourist spots; (d) areas which constitute the habitat for any endangered or threatened
species of indigenous Philippine wildlife (flora and fauna); (e) areas of unique historic,
archeological and scientific interests; (f) areas that are traditionally occupied by the
ICCs/IPs; (g) areas with critical slopes; (h) areas frequently visited and/or hard hit by
natural calamities (geologic hazards, floods, typhoons and volcanic activities); (i) areas
classified as prime agricultural lands; (j) recharge areas of aquifers; (k) water bodies; (|)
mangrove areas; (m) coral reefs; (n) mossy and virgin forests; (0) rivers and river banks;
(p) swamp forest and marshlands; (q) foreshore lands; and (r) small islands five
thousand (5,000) hectares and below in size. For purposes of this Act, this term shall
also refer to other terrestrial, aquatic and marine areas that need special protection and
conservation measures because they are ecologically fragile or they are needed for
food security and food self-sufficiency as determined by concerned agencies and local
government units in consultation with the concerned sectors;

(0) "Exhausted Energy Resource Lands" refer to specific energy resource sites whose
energy reserves of the desired type(s) are no longer in sufficient quantity or quality to
justify additional expenditure for their extraction and utilization;

(p) "Exhausted Mineral Lands" refer to specific sites whose mineral deposits are no
longer insufficient quantity or quality to justify additional expenditure for their extraction
and utilization.

(q) "Food Self-sufficiency" refers to the policy objective of meeting the food
requirements through intensive local food production in a sustainable manner based on
the country's existing and potential resource endowments and related production
advantages.

()) "Food Security" refers to the policy objective, plan and strategy of‘ meeting the food
requirements of the present and future generations of Filipinos in quantity, ensuring the
availability, accessibility and affordability of food to all, either through local production or
importation, or both, based on the country's existing and potential resource endowment
and related production advantages, and consistent with the overall national
development objectives and policies;

(s) "Forestlands" refer to those lands of the public domain which have been ‘subjected to
land evaluation and classification and have been legally designated as such for
production forest and protected forest. They include the public forest, the permanent
forest or forest reserves, and forest reservations;


(t) "Foreshore Land” refers to a string of land that margins a body of water or the shore
between the lowest low waterline of a low tide terrace and the upper limit of wave wash
at highest high tide, usually marked by a beach scarp or berm; .

(u) "Geo-hazard Areas" refer to areas where natural or man-induced geological
processes that have the potential to cause destruction and pose threat or risk to man’s
life and property take place;

(v) "Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs)" refer to a group
of people or homogenous societies defined under Republic Act No. 8371, otherwise
known as "The Indigenous Peoples Rights Act of 1997" or "IPRA";

(w) "Indigenous Energy Resources” refer to energy resources, which originate or occur
naturally in the Philippines;

(x) "Inland Waters" refer to waters which are not coastal and marine waters not subject
to acquisitive prescription consistent with the provisions of Presidential Decree No.
1067, otherwise known as "The "Water Code of the Philippines";

(y) "Land" refers to resources, both natural and man-made, found on the surface, below
and above the ground including inland waters and the air therein;

(z) "Land Subclassification" refers to the act of determining and assigning the uses of
classified public lands such as .forest or timber lands, national parks and mineral lands
in accordance with existing laws;

(aa) "Land Use" refers to the manner of utilizing the land, including its allocation,
development and management;

(bb) “Land Use Classification" refers to the act of delineating or allocating lands
according to protection land use, production land use, settlements development,
infrastructure development, and other land uses as defined and provided for in this Act;
(cc) "Land Use Policy Administration (LUPA)" refers to an administrative, regulatory and
quasi-judicial body provided for under this Act which shall be the final authority in all
matters relating to land use planning;

(dd) "Mandatory public hearings/consultations" refers to ' the mechanism for ensuring
the involvement of the affected stakeholders in land use planning from local to national
level. It involves giving notice of hearing/consultation to affected stakeholders by
Publication or posting in conspicuous cases, conduct of reasonable number of hearings,
solicitation of positions and public presentation and validation of the planning results
before its finalization;

(ee) "Mineral Lands" refer to lands where mineral resources are found;

(ff) "National Parks" refer to land of the public domain classified as such in the 1987
Philippine Constitution which include all areas under the National Integrated Protected
Areas System pursuant to Republic Act No. 7586 or the "NIPAS Act of 1992";

(gg) "Non-agricultural Land Use Conversion" refers to the act of changing the current
use of a piece of non-agricultural land into some other uses;

(hh) "Non-Government Organization (NGO)" refers to a private, non-profit voluntary
organization that is committed to the task of political, socio-economic, physical, cultural
and environmental development and established primarily to provide service to
marginalized sectors in these areas;

(ii) “People's Organization (PO)" refers to a private, non-profit, voluntary and
community-based organization established primarily to provide service to its members
and the community in general:


(j) "Physical Framework Plans" refer to indicative plans based on comprehensive land
use plans (CLUPs) and national policies whether national, regional, or provincial which
provide policy guidelines for all decisions relating to land use and environmental
management to prevent or mitigate the adverse effects of inappropriate resource
utilization on food security, the people's welfare and their environment: It embodies both
policies and strategies necessary to carry out development goals and objectives;

(kk) "Premature or Illegal Conversion of Agricultural Land” refers to the undertaking of
any activity whose results will modify or alter the physical characteristics of agricultural
lands to render them suitable for non-agricultural purposes without an approved order of
conversion from the LUPA. ;
(ll) "Prime Agricultural Lands" refer to lands that can be used for various or specific
agricultural activities and can provide optimum and sustainable yield with a minimum of
inputs and development costs;

(mm) “Production Land Use" refers to the direct and indirect utilization of land to
generate outputs resulting from the following activities: agricultural, fish farming or
aquaculture, timber or agro-forestry, grazing and pasture, mining, industrial, tourism,
and indigenous energy resource development;

(nn) "Protected Area" refers to identified portions of land and water set aside by reason
of their unique physical and biological significance, managed to enhanced biological
diversity and protected against destructive human exploitation pursuant to

Republic Act No. 7586 or the "NIPAS Act of 1992". For purposes of this Act, it shall
include agricultural lands identified and delineated under Sec. 33 hereof;

(00) "Protection Land Use" refers to the utilization of land primarily for the rehabilitation,
conservation and protection purposes and the promotion of the country's ecological and
life-support systems;

(pp) “Public Domain" refers to lands belonging to the State which may either be
agricultural, forest or timber, mineral or national park as provided for in the Constitution;
(qq) "Public Lands" refer to lands which have not been subject to private property rights
or subject to sale or other modes of acquisition of concession, under the general laws,
and are devoted to public use;

(rr) "Resettlement Areas" refer to areas identified by the appropriate national agency or
by the local government unit with respect to areas within its jurisdiction, which shall be
used for the relocation of the underprivileged, homeless citizens, and informal settlers;
(ss) Settlement” refers to the habitat, community or built-up environment where people
prefer to live in;

(tt) "Settlements Development" refers to any improvement on existing settlements, or
any proposed development of certain areas for settlement purposes. It also involves the
spatial distribution of population, identification of the roles and functions of key urban
centers and determination of relationships among settlement areas, and the provision of
basic services and facilities of identified major settlement areas or growth centers;

(uu) "Shoreline" is the line where shore and water.meet. "Shore" is the narrow strip of
land in immediate contact with any body of water, including the area between high and
low water lines;

(w) "Socialized Housing” refers to housing programs and projects undertaken by the
Government or the private sector for the underprivileged, homeless citizens, and


informal settlers which shall include sites and services development, long-term
financing, liberalized terms on interest payments, and such other benefits in

accordance with the provisions of Republic Act No. 7279, otherwise known as the
"Urban Development and Housing Act of 1992" (UDHA);

(ww) "Socialized Housing Zones" refer to lands identified and designated by the local
government units as sites for socialized housing pursuant to Article IV of Republic Act
No. 7279 and its implementing guidelines;

(x) "Sub-classification or reclassification of agricultural lands" refers to the process
Undertaken by the local government units of allocating in their respective territorial
jurisdictions the declared agricultural lands to specific uses such as residential,
industrial or commercial purposes. It shall serve as one of the bases for application for
land conversion by the owners thereof and shall constitute the power of the local
government units to reclassify lands under Sec. 20 of Republic Act No. 7160, otherwise
known as the "Local Government Code of 1991" consistent with the provisions of this
Act,

(yy) "Sustainable development” refers to the development objective of meeting the
needs of the present without compromising the ability of future generations to meet their
own needs consistent with the principles of social equity, efficiency and environmental
integrity;

(zz) "Tourism Development Areas” refer to specific sites for tourism development
located in areas identified as priorities in the national and regional tourism master plans
as well as those designated through legislative and executive issuances as tourist spots
and tourist zones which can be developed into tourism estates or integrated resort,
leisure and recreation complexes, and other tourism related facilities;

(aaa) "Tourism Estates" refer to large tracts of land with well-defined boundaries in any
area identified in the Philippine Tourism Master Plan, Regional Tourism Master Plans,
by proclamation of the President and/or by acts of Congress including local and
integrated tourism and resort complex including but not limited to accommodation
facilities, food and beverages outlets, convention and meeting areas, sports,
recreational and leisure centers and commercial outlets among others. The estate shall
be under one unified and continuous management;

(bbb) "Tourist Zone" refers to a geographic area with well-defined boundaries
proclaimed as such by the President and/or by acts of Congress and is established for
the enhancement and/or the conservation of natural attributes and man-made resources
as well as the preservation of cultural and historical heritage for the appreciation and
enjoyment of the local population and the visitors;

(ccc) "Tourist Spot" refers to a particular area, site or spot, whether man-made or
natural, known for its unique tourist or visitor drawing attributes and activities. It may be
classified according to its social, cultural, natural, historical, scientific, religious and
recreational significance;

(ddd) "Urban areas" refer to all cities regardless of their population density and to
municipalities with a population density of at least five hundred (500) persons per
square kilometer;

(eee) “Urbanizable areas" refer to sites and lands which, considering present
characteristics and prevailing conditions, display marked and great potential of
becoming urban areas within the period of five ( 5 ) years;


(fff) "Water security” is sufficient access throughout the year to the minimum daily
requirement of clean water to maintain a healthy life; - ;
(gag) "Water .Use" is the appropriation of water for domestic, municipal, irrigation,
power generation, inland fisheries, poultry and livestock, industrial and commercial,
environmental, and recreational use; . |

(hhh) "Watershed" refers to a catchment area or drainage basin from which the waters
of a stream or stream system are drawn;

(ili) "Zoning’ refers to the regulatory tool for delineating the specific uses of lands in
accordance with the approved comprehensive land use plan within the territorial .
jurisdiction of a city or municipality and specifying the conditions for their regulation,
subject to the limitations imposed by law and competent authority; and,

(ij) "Zoning Ordinance (ZO)" refers to a local legislation approving the development/land
use plan and providing for the regulations and other conditions on the uses of land
including the limitation on the infrastructure that may be placed within the territorial
jurisdiction of a city or municipality. It incorporates the protected areas under Section 14
(a) and the protected agricultural lands under Section 33 hereof.

CHAPTER II
NATIONAL FRAMEWORK FOR LAND USE PLANNING

Article One
Physical Framework and Land Use Plans

SEC. 5. National Land Use Planning and Zoning Guidelines and Standards. - Within six
(6) months from the effectivity of the Act, the Land Use Policy Administration (LUPA),
created under this Act, shall, in consultation with the concerned stakeholders through
mandatory conduct of public hearings, formulate national land use planning and zoning
guidelines and standards which shall guide the local government units (LGUs) in
formulating their Comprehensive Land Use Plans (CLUPs) and enacting their zoning
ordinances (ZOs). Standards and guidelines on land use shall be set at the national
level for major island groupings based on available data provided by the existing
mapping program. The guidelines and standards shall, among others, include: (a) the
implementing rules and regulations of this Act; (b) the delineated protected areas
including the agricultural lands that are given protection under Section 33 of this Act
which areas shall be incorporated in the following plans and shall not be subject to
reduction except by laws or issuances from the concerned national agencies; and, (c)
the spatial implications of relevant national policies, national development plan, and
existing sectoral plans which are consistent with the provisions of this Act.

SEC. 6. City and Municipal Land Use Plans. - Consistent with the preceding section and
in consultation with the concerned stakeholders through mandatory conduct of public
hearings, the cities and the municipalities through their local development councils shall
prepare their respective CLUPs to determine the specific uses of their land and other
physical resources, including the delineation of actual boundaries on the ground on the
territorial jurisdiction of the city or municipality and the translation and integration of


sectoral plans in their respective plans. Protected areas pursuant to Section 14 and
other existing laws and issuances as well as the agricultural lands identified and
delineated under Section 33, and the identified socialized housing sites under Sections
58 and 59 hereof shall be incorporated in the CLUPs but the respective LGUs shall not
diminish the areas included therein.

SEC. 7 . Provincial and Regional Physical Framework Plans. - In consultation with the
concerned stakeholders through mandatory conduct of public hearings, the Provincial
Development Council (PDC) and the Regional Land Use Committee (RLUC) as
provided for in Section 25 hereof shall prepare their respective provincial and regional
physical framework plans (PPFPs and RPFPs) which shall consolidate, integrate,
harmonize, and reconcile the land use plans of the component cities and municipalities
of respective provinces or the land use plans of respective provinces and independent
and highly urbanized cities located in the concerned regions, as the case may be,
based on the preceding standards and guidelines as well as the city and municipal
CLUPs.

SEC 8. Land Use Plans for Ancestral Domains. - Land use plans for the delineated and
recognized ancestral domains shall be formulated by the indigenous cultural
communities/indigenous peoples (ICCs/IPs) themselves in accordance with their
particular needs and traditional resource and management systems with the assistance
of the National Commission on Indigenous Peoples (NCIP) and the LGUs concerned.
Such plans shall be recognized and integrated in the CLUPs as well as in the provincial,
regional and national physical framework plans. CLUPs or physical framework plans
made prior to delineation of ancestral domains included in such plans or ordinances
shall be without prejudice to the right of the ICCs/Ps Concerned to adopt different land
use categories in accordance with their particular needs and traditional resource and
management systems.

SEC. 9. National Physical Framework Plan. - Based on the completed CLUPs, the
PPFP, and the RPFP, the LUPA may revise the standards and guidelines in Section 5
hereof, except with respect to the delineated and protected areas which may be subject
to review every five ( 5 ) years, and formulate the National Physical Framework Plan
(NPFP). The NPFP shall define the objectives, policies and strategies on the indicative
uses of land and other physical resources of the country to guide and support the
implementation of the national development plan. Upon its completion, all subsequent
planning processes pertaining to the use of land resources shall conform to the
mandatory provisions of the NPFP, particularly with respect to the protected areas.
However, in case of national emergency or security, or when public interest so
demands, as certified by the President, the LUPA is empowered to review and/or revise
the NPFP whenever necessary, without prejudice to actions that may be taken by
affected. individuals, groups, or entities, whether public or private

Article Two
Local Land Use Planning and Zoning


SEC. 10. Basis of City/Municipality Land Use Plans. - The CLUPs of cities and
municipalities shall be formulated in consonance with the results of mandatory
consultations of the various stakeholders in the community and subject to the nationally
prescribed standards and guidelines pursuant to Sections 5 and 9 hereof.

SEC. 11. Coverage and Basis of Zoning. - Zoning shall cover all alienable and
disposable lands, government-owned lands, and private lands in the territorial
jurisdiction of the city or municipality incorporating those declared as protected areas
including those areas given protection under Section 33 hereof. The zoning plan and
ordinance of LGUs shall be based on their respective approved CLUPs.

SEC. 12. Period to Conduct Land Use Planning and Zoning. - Within six (6) months
from the issuance of the guidelines and standards as provided for in Section 5 of this
Act, all cities and municipalities shall prepare and enact their respective CLUPs and
ZOs. The actual zoning of communities based on the standards and guidelines shall be
conducted before the approval of the NPFP. Thereafter, the CLUPs and ZOs based on
NPFP as provided for in Section 9 hereof may be subject to review or revision every
seven (7) years or as mandated by the LUPA.

Article Three

Framework for Land Use Planning
SEC. 13. Basic Land Use Planning Considerations. - in determining the various land
uses as provided for in Section 14 hereof, the physical characteristics of the land
including the following, shall be considered:
(a) Geology, geomorphology, geologic hazards, (e.g., seismic, volcanic, mass
movements, landslide, etc.) soil and slope; (b) Demography (population size, growth
and distribution);
(c) Food security, socio-economic and related development activities;
(d) Energy security and self-sufficiency;
(e) Existing and potential land use;
(f) Environmental, natural resources, and other constraints;
(g) Existing government policies on land allocation, utilization, management and
disposition.

SEC. 14. Categories of Land Uses for Planning Purposes. - In determining and defining
the NPFP, WFPsPPFPs and the CLUPs, land uses shall be grouped into four major
functional uses as follows:

(a) Protection land use - the adoption of which intends to protect, preserve and enhance
critical ecosystems from any human encroachment, regenerate and rehabilitate
degraded land and other physical resources, ensure safeguard against environmental
hazards including those resulting from unregulated activities, and enhance and sustain
the benefits derived from maintaining the integrity of the nation's land resources. Areas
to be covered under this category are those under the National Integrated Protected
Areas System (NIPAS) as provided for by R.A. No. 7506 and those outside the NIPAS
which require rehabilitation and protection as identified by the Department of
Environment and Natural Resources (DENR), in coordination with concerned LGUs and


national government agencies (NGAs), and in consultation with concerned
stakeholders; ;

(b) Production land use - the adoption of which aims to determine the most efficient,
sustainable, and equitable manner of utilizing, developing and managing land for
productive purposes. Areas included under this category are agricultural lands even
though identified and delineated as protected under Section 33 hereof, coastal zones
excluding those declared by DENR and other similar government agencies that are in
environmentally critical conditions, production forest, mineral lands, energy resource
lands, industrial development areas, and tourism development areas;

(c) Settlements development - the adoption of which seeks to promote an orderly,
equitable, and sustainable development of human settlements responsive to the needs
of its inhabitants and the environment. Classification shall be made based on the
predominant economic and socio-cultural activities, as urban or rural, and based on the
topography and slope of land as upland, hillside, lowland, or coastal. Major uses under
this category shall include: residential, including relocation and resettlement sites for
socialized housing as provided for in R.A. No. 7279 (or the "Urban Development and
Housing Act of 1992" or ‘UDHA’) and socialized housing zones; commercial, industrial;
institutional, (e.g., sites of government offices, health and education), utilities; tourism,
recreational, including parks, urban forests, open or green space; waste disposal; and
roads, rail transportation networks, and facilities; (d) Infrastructure development - which
shall cover areas identified by the LGUs, the National Economic and Development,
Authority (NEDA), and other concerned agencies as sites for priority infrastructure
projects which shall include, among others: power plants/stations and major
substations; indigenous energy resource exploration and development: irrigation and
flood control sewerage and drainage facilities, water supply system and treatment
plants; airports/seaports/fishports; major road, bridge, and railway trunklines; farm-to-
market roads; agricultural research and development farms and/or stations; waste
disposal facilities; educational facilities; health facilities; telecommunications stations
and other facilities; disaster mitigation facilities; and market sites: Provided, That the
determination of functional uses of lands within ancestral domains need not necessarily
follow the land use categories provided for in this Act and separate land use categories
for delineated ancestral domains may be formulated by the concerned ICCs/IPs
themselves in accordance with their particular needs and traditional resource and
management systems

SEC. 15. Multiple Land Uses. - Subject to the provisions of this Act, the LUPA shall

encourage multiple land uses as long as they are complementary and not incompatible
with each other.

SEC. 16. Categories of Water Uses for Planning Purposes. - For purposes of this Act,
the categories of water uses for planning purposes shall be in accordance with existing
laws. Notwithstanding such laws, the categories to be adopted must complement and
support the foregoing categories for land use planning. Within six (6) months from the
effectivity of this Act, after the conduct of public consultations, the National Water
Resources Board (NWRB) and the LUPA shall jointly adopt and. issue implementing
guidelines, rules, and regulations that will promote the integration of sound water


resource utilization, allocation, management, and development with the requirements of
sustainable land use planning.

CHAPTER Ill
IMPLEMENTING STRUCTURE AMD MECHANISM

Article One
Land Use Policy Administration =

SEC. 17. Creation of the Land Use Policy Administration (LUPA). - The Land Use Policy
Administration (LUPA) is hereby created which shall be the highest policy making body
on land use and shall perform the task of integration of efforts, monitoring of
developments relating to land use, evolution of policies, and regulation and direction of
land use planning processes. The powers and functions vested by law to the Housing
and Land Use Regulatory Board (HLURB) and to the National Land Use Committee
(NLUC) under the National Economic Development Authority (NEDA) pertaining to land
use are hereby transferred to the LUPA.

SEC. 18. Executive Board. - The LUPA shall have an Executive Board, hereinafter
referred to as the Board, whose main function is to direct the implementation of the
provisions of this Act, and shall be composed of nineteen (19) members.

(a) The Executive Secretary as Chairperson;

(b) The Secretary of the Department of Environment and Natural Resources (DENR)
and the Director-General of the National Economic and Development Authority (NEDA)
as Vice-Chairpersons;

(c) The Secretaries of Agriculture; Agrarian Reform; Trade and Industry; Public Works
and Highways; Transportation and Communications; Energy; Science and Technology;
Tourism; Interior and Local Government; and Justice as members;

(d) The Chairperson of the Housing and Urban Development Coordinating Council
(HUDCC) as member;

(e) Four (4) representatives from the different basic sectors with direct involvement in
sustainable land use such as urban poor, peasants, fisherfolk, and indigenous peoples -
who shall be appointed by the President based on the nomination and recommendation
of the sectors that they respectively represent - as members;

(f) The Administrator of the LUPA, as ex-officio member, who shall likewise act as
Secretary to the Board.

A consultative body composed of representatives from the Leagues of Municipalities,
Cities, and Provinces and from non-government sector such as the business sector,
NGOs and POs, and the academic community shall likewise be convened every two (2)
months.

SEC. 19. Powers and Functions. - The LUPA shall have the following powers and
functions: Formulate policies on, and promulgate, in consultation with all concerned

stakeholders, national standards and guidelines on land use and zoning under Sections
5 and 9 hereof, and issue corresponding rules and regulations to enforce compliance
thereof; Formulate NPFP and RPFPs based on land use plans at the local levels that
shall serve as guide in translating the national development plan and’ pertinent sectoral


plans consistent with the provisions of this Act into physical and spatial terms; Establish
a National Land Use Allocation System which shall provide detailed guidelines on land
use policy areas or categories for land use planning under Section 14 hereof, Establish
a National Land Resource Information and Management System, which shall integrate
and process information on land use and allocation generated by the various national
government agencies, define information requirements at various levels, and
standardize information inputs/outputs including scales and symbols in the case of
territorial and sectoral maps; Undertake the gathering of data, the conduct of studies
pertaining to land use planning, including studies on the management of identified land
uses, and such other studies not undertaken by other government agencies; Coordinate
with, and assist other government agencies and LGUs in planning, developing, and
implementing their land use classification programs, and to furnish, to the extent
possible, technical assistance and guidance; Monitor and coordinate concerned
agencies and entities of the government in the enforcement and implementation of
policies and regulations relating to land use and resource management and
development; Hear and resolve conflicts in land use planning, classification, and
allocation that may arise: (1) at the first instance - between NGAs, between an NGA and
an LGU, between an NGA and any regional or local planning bodies, and other cases
not falling under its appellate capacity; (2) in its appellate capacity - with respect to
conflicts arising from the disapproval/modification of CLUPs of component cities and
municipalities by provinces and from the disapproval/modification of PPFPs of provinces
by the RLUCs or of the CLWs of independent component and highly-urbanized cities
also by the RLUCs; Call on and deputize any department, bureau, office, agency or
instrumentality of the government, including the police forces, and or private entities and
organization for cooperation, support, and assistance in the performance of its
functions; Adopt its own organizational plan and staffing pattern, create central and
regional offices, and assist the LGUs in the ton nation of local land use committees;
and, Perform such other acts and functions and exercise such other powers as may be
necessarily implied, inherent, incident, or related to the foregoing.

SEC. 20. Offices, Units and Staff Support. - The LUPA shall be assisted by a secretariat
under the general supervision of the Administrator. The Administrator may organize at
the central and regional levels such offices as may be necessary subject to civil service
rules and regulations. Subject to existing laws, rules and regulations and until such time
that LUPA shall have been fully organized and operational, agencies performing
functions related to land use shall continue to discharge the same, under the
operational supervision and control of LUPA and consistent with the national guidelines
and standards set forth in Section 5 hereof.

SEC. 21. Powers and Functions of the Administrator. - The Administrator shall have the
following powers and functions: Act as the executive head of the LUPA and perform the
powers and functions incidental to said position; Be responsible for the implementation
and overall execution of the policies, rules and regulations, and decisions adopted by
the Board; and as such, he/she shall issue the corresponding implementing
administrative issuances, and promulgate opinions and interpretative circulars and


rulings to ensure expeditious ,and effective implementation thereof; and, Perform such
other powers and functions as may be inherent, incidental, or

related to the foregoing. The decisions of the Administrator may be appealed to the
LUPA Board.

SEC. 22. Qualifications of the Administrator. - The Administrator must have a
background or significant training preferably in the field of environmental and/or physical
planning, land resources management, or development planning and management for a
period of at least five (5) years. He/she shall be appointed by the President and shall
have the rank of a Cabinet Secretary

SEC. 23. Qualifications, Rank and Duties of the Deputy Administrator. — The
Administrator shall be assisted by a Deputy Administrator who shall be appointed by the
President upon the recommendation of the Board. The Deputy Administrator shall have
the same qualifications as the Administrator and shall have the rank of an
Undersecretary. The Deputy Administrator shall be the operational administrative
manager of the LUPA and shall assist the Administrator in hidher routine housekeeping
functions.

Article Two
Land Development Councils and Land Use Committees

SEC. 24. Local Development Councils and Land Use Committees. — The formulation of
the CLUPs and PPFPs shall be the primary responsibility of the Local Development
Councils (LDCs). The LGUs without existing LDCs as mandated by R.A. No. 7160 shall
create their respective LDCs within one (1) year from the effectivity of this Act. Local
land use committees pertain to the provincial, city, or municipal land use committees
(PLUCs, CLUCs, MLUCs) formed by the LDCs. Existing and newly formed LDCs shall
create within one (1) year from the effectivity of this Act or from their creation as the
case may be, a local land use committee to assist them in performing such functions as
defined in this Act: Provided, That membership therein must, among others, include
representatives from concerned NGOs and POs, such as but not limited to peasants,
fisherfolk, urban poor, and indigenous cultural communities/indigenous peoples. Other
concerned sectors shall also be invited during committee deliberations and public
hearings. The CLUCs/MLUCs shall likewise solicit the land use positions, views,
perspectives and issues raised and articulated by the concerned communities through
their respective barangay representatives who shall also participate during the public
hearings. Until such time that the LUPA shall have created its counterpart committees at
the regional level, the Regional Land Use Committees (RLUCs) under the Regional
Development Councils (RDCs) shall act as the counterpart of the LUPA and shall
perform such functions as defined under this Act.

Article Three

Adoption, Approval and Review of Land Use Plans
SEC. 25. Component Cities and Municipalities. - Component cities and municipalities
shall have the power and authority to adopt and approve their respective CLUPs and
ZOs through their respective Sanggunians but subject to the power of review of their


respective provinces only with respect to the consistency of the CLUPs and ZOs with
Sections 5 and 9 hereof

SEC. 26. Provinces and Independent and Highly Urbanized Cities..- Provinces and
independent and highly urbanized cities shall have the power and authority to adopt and
approve their respective CLUPs and ZOs through their respective Sanggunians but
subject to the power of review of the LUPA through its RLUCs or as provided for in
Section 25 hereof and only with respect to the consistency of the CLUPs and ZOs with
Sections 5 and 9 hereof.

Article Four
Responsibilities of the National Government Agencies and LGUs

SEC. 27. National Base Mapping Program. - A National Mapping Program shall be
implemented, coordinated, and monitored through the creation of an inter-agency
technical committee composed of the LUPA, as the lead agency, the National Mapping
and Resource Information Authority (NAMRIA), the Bureau of Soils and Water
Management (BSW\), the Mines and Geosciences Bureau (MGB), the Forest
Management Bureau (FMB), the Land Management Bureau (LMB), the Protected Areas
And Wildlife Bureau (PAWB), the Philippine Institute of Volcanology and Seismology
(PHIVOLCS), the Department of Agrarian Reform (DAR), the National Water Resources
Board (NSWRB), the Department of Energy (DOE), and other concerned government
agencies/bureaus. For purposes of uniformity and standardization, the LGUs, to be
assisted by the appropriate agencies of the national government, shall likewise prepare
their respective territorial maps using scales, symbols, and other indicators to be
prescribed in accordance with this Act.

SEC. 28. National Geo-hazard Mapping Program. - A nationwide Geo-hazard Mapping
Program shall be implemented jointly though the LUPA by the PHIVOLCS, the Bureau
of Soils, the Philippine Atmospheric Geophysical and Astronomical Services
Administration (PAGASA), and the Mines and Geosciences Bureau (MGB), in
coordination with the National Disaster Coordinating Council (NDCC), the Regional
Disaster Coordinating Councils, and other concerned government agencies. The
program shall include the generation of indicative geo-hazard zoning maps that will
outline areas in the Philippines prone to liquefaction, land slides, flooding, lahar, ground
rupturing, tsunami, river erosion, coastal erosion, sinkhole collapse, earthquake, lava
flow, pyroclastic flow, base surge, and other natural hazards. For purposes of uniformity
and standardization and in order to develop a safe built environment, the LGUs shall
incorporate and integrate the generated geo-hazard zoning maps in the preparation of
their respective CLUPs and 20s. The geo-hazard maps shall serve as guide for all the
LGUs in the preparation of their own hazards-constrained development plans.

SEC. 29. Scope and Nature of Responsibilities of Other National Government Agencies
(NGAs). - All concerned NGAs shall periodically report to the LUPA on the various
activities and accomplishments relative to land use. Likewise, they shall provide for their
respective sectoral/development plans and render technical and administrative support
if called upon by the LUPA relative to the implementation of the provisions of this Act.


SEC. 30. Submission of Annual Report on the Implementation of CLUPs and ZOs. - The
LDCs shall submit an annual report on the implementation of their land use plans and
zoning ordinances to the LUPA through the Sangguniang Panlalawigan, or in the case
of highly urbanized and independent cities, through their respective Sanggunian
Panlungsod.

CHAPTER IV.
SPECIAL AREAS OF CONCERN

Article One
Agricultural Lands
SEC. 31. Priority Areas for Agricultural Development. - Priority areas for agricultural
development must be based on the Strategic Agricultural and Fisheries Development
Zones (SAFDZs) as defined in R.A. No. 8435, otherwise known as the Agricultural and
fisheries Modernization Act of 1997 (AFMA).

SEC. 32. Conversion of Agricultural Lands. - Agricultural lands are deemed converted to
non-agricultural uses upon approval of the application for conversion by the LUPA as
recommended by the DAR and as certified by the DA. Prime agricultural lands and
specific types of lands to the extent necessary for attaining food self-sufficiency in rice
and corn and food security in other basic commodities, as determined by the DA,
subject to mandatory consultation with the LGUs, the private sector, the NGOs, and Pos
shall be protected from conversion. Such protection shall include, but not limited to,
areas under the Network of Protected Areas for Agricultural and Agro-industrial
Development (NPAAAD): Provided, That all irrigated and irrigable lands, all lands with
existing or potential for high value crops, all agricultural lands that are ecologically
fragile and whose conversion will result into serious environmental problems shall be
given full protection from conversion. Such protected agricultural lands and areas shall
be subject to review every five (5) years by the DA, after the conduct of mandatory
public hearings/consultations: Provided, further, That consistent with the State policy on
giving priority to the completion of the Comprehensive Agrarian Reform Program
(CARP), all the remaining lands subject to CARP, including those lands covered under
the notice of compulsory acquisition/voluntary offer to sell, production or profit-sharing,
or commercial farm deferment of the CARP, shall also be fully protected from
conversion pending the distribution and installation of the farmer beneficiaries; but
thereafter, Section 65 of R.A. No. 6657 shall apply: Provided, finally, That pending the
completion of the mapping, the identification of specific areas under the NPAAAD and
the SAFDZs under R.A. No. 8435, the revision thereof pursuant to the foregoing, and
the incorporation thereof in the NPFP, there shall be a moratorium in all applications for
conversion of agricultural lands into non-agricultural uses commencing from the
effectivity of this Act, except for priority infrastructure projects that are of national
interest pursuant to Sec. 63 and 64 hereof. The application for conversion of these
protected areas shall not be given due course by the DAR and the LUPA.



SEC. 33. Sub-classificalion or Reclassificalion of Agricultural Lands by LGUs. ~ Sub-
classification or reclassification of agricultural lands to other uses under Section 20 of
R.A. No. 7160 or the Local Government Code of 1991 shall exclude the protected
agricultural lands as stated in the preceding section. The result of such sub-
classification/reclassification shall constitute the actual plan for allocating the future
uses of lands within the territorial jurisdictions of LGUs and is not synonymous to
conversion. After the completion of the mapping of protected agricultural lands, the DA
and the DAR shall provide the LGUs with a complete list and maps thereof.

Article Two
Other Land Use Conversion
SEC. 34. Conversion of Non-Agricultural Lands. - The approved CLUPs and ZOs of
cities or municipalities shall be the basis for authorizing the change of non-agricultural
lands to other uses, such as from residential to commercial and/or industrial subject,
however, to national guidelines and standards, and subsequently, the NPFP. A public
hearing is required before any CLUP/ZO is passed. The Sangguniang Panlungsod or
Sangguniang Bayan shall approve any application for change of land use of non-
agricultural lands based on the recommendation of the CLUCMLUC.

Article Three
Forestlands and Preservation of Watersheds
SEC. 35. Reversion of Alienable and Disposable Lands to Forestiands. — Upon the
recommendation of the Secretary of the DENR, duly reviewed and endorsed by the
LUPA, and after due consultations with the concerned LGUs and affected parties,
Congress may authorize the reversion of alienable and disposable lands of the public
domain or portion thereof to forestlands.

SEC. 36. Determination of Forest Limit. - Within one (1) year after the release of the
budget appropriated for the purpose of classifying, reclassifying, and delineating all
lands of the public domain, the DENR shall submit the final inventory of lands after
which, Congress, shall within a period of one hundred twenty (120) working days,
determine by law the specific limit of forestlands and national parks, and endangered
forests and watershed areas, marking clearly their boundaries on the ground.
Thereafter, such forestlands and national parks shall be conserved and may not be
diminished, except by law.

SEC. 37. Coverage of Production Forest. - Production forests include: the residual
dipterocarp forests; pine forests available for logging; rangelands for grazing; areas
under industrial forest plantation management; areas for community forest program;
integrated social forestry; and other forestlands for special uses, excluding the critical
watersheds as identified by the DENR, in coordination with concerned LGUs and NGAs,
and subject to mandatory public consultations with concerned sectors.

SEC. 38. Criteria for the Sub-classification of Public Lands for Timber Production, Agro-
forestry, Grazing and Pasture and Other Purposes. - The sub-classification of public
lands shall be guided by the following: (a) Geology, geomorphology, soil and slope: (b)


Classified public lands below fifty percent (50%) slope may be sub-classified for timber
production, agro-forestry, grazing or pasture land activities provided that the use of such
areas shall not result in soil degradation or any adverse ecological condition; (c)
Watershed may be subject to multiple uses provided that the area is utilized, managed
and developed for the primary, purpose by which it has been established excluding
critical watersheds as identified by the DENR, in coordination with concerned LGUs and
NGAs, and subject to mandatory public hearings/consultations with concerned sectors;
(d) All public lands above fifty percent (50%) slope shall be sub-classified into
appropriate protection or production land uses provided that such land use shall not
engender significant adverse environmental effects; and (e) The overall carrying
capacity of classified public lands, including their existing and potential land uses shall
serve as the basis for determining their sub-classification.

SEC. 39. Critical Watershed Areas. - The DENR, in coordination with the DA, the LGUs,
and other government agencies, including government-owned-and-controlled
corporations, and with mandatory public hearings/consultations, shall identify and
delineate critical watershed areas that need to be protected, rehabilitated, enhanced,
and/or withdrawn from uses that contribute to its further degradation.

SEC. 40. Formulation and Implementation of Integrated Watershed Management Plans.
- With the assistance of the DENR in collaboration with the NWRB, and upon mandatory
consultations with the concerned stakeholders, the LGUs through their local land use
committees shall prepare their watershed management plans which shall be integrated
with their respective CLUPs. The formulation and integration of the plan shall be guided,
aniong others, by the principle that the management and development of inland water
resources shall be at the watershed level. In cases where the watershed areas
transcend the boundaries of a particular municipality, an inter-LGU committee
composed of representatives from local land use committees of the LGUs where the
watershed area is located shall be formed. With the assistance of the DENR and upon
mandatory consultations with the concerned stakeholders, the inter-LGU committee
shall be tasked to formulate the watershed management plan for the said watershed
area. The DENR and the concerned LGUs shall jointly implement the watershed
management plan subject to regular consultations with and involvement of the
community stakeholders in the implementation of the plan.

Article Four

Costal Zones
SEC. 41, Classification of Coastal Zones. - All public lands in the coastal zones shall be
sub-classified as fishponds, mangrove, fisherfolk settlement and recreational/tourism
areas with the end in view of attaining bio-diversity conservation.

SEC. 42. Guidelines for the Allocation and Utilization of Lands Within the Coastal
Zones. - The allocation and utilization of lands within the coastal zones shall be guided
by the following:

(a) Areas vegetated with mangrove species shall be preserved for mangrove production
and will not be converted to other uses:


(b) Areas that meet all accepted criteria on elevation, soil type, soil depth, topography
supply for successful fishpond development and devoid of any mangrove stands, may
be utilized for aquaculture purposes;

(c) Areas sub-classified as mangrove and still suitable for use as such, or due to
environmental conditions need to be preserved as mangrove, but of which the land is
devoid of mangrove stands will not be converted to other uses. The DENR shall ensure
that these lands shall be reforested within a given period of time;

(d) Areas that are neither sub-classified as mangrove or fishpond may be devoted for
recreational and/or tourism purposes, provided that such undertaking will not result in
environmental degradation;

(e) Areas which are considered as traditional fishing grounds shall be.used primarily for
such purpose;

(f) Areas which are allocated for small infrastructures needed by fisherfolk shall be
allowed;

(g) Areas which form part of foreshore lands as defined in this Act including those that
are under lease agreements/arrangements should undergo zonation and evaluation to
determine their boundaries and actual sizes and corresponding uses; and,

(h) Areas which are classified for fisherfolk settlement and housing shall be allocated to:
(1) traditional fishers or fisherfolk who are inhabitants of the, coastal communities; and
(2) members of legitimate fisherfolk organizations and/or holders of stewardship, lease
contracts, or titles to ancestral domains or any form of property rights arrangements,
who participate in coastal resource management initiatives.

SEC. 43. Coastal Zone Land Sub-classification by LGUs. - Sub-classification of coastal
zones to different uses, which shall exclude the protected areas as stated in this Act, by
the LGUs shall be subject to prior consultation with local Fisheries and Aquatic
Resource Management Councils (FARMCs) formed under R.A. No. 8550.

SEC. 44. Disposition of Public Lands for Fishpond. Upon the effectivity of this Act but
‘subject to existing rights and the preceding section, no fishpond lease agreement (FLA)
shall be issued for tidal swamps, mangroves and oilier swamps, marshes, ponds,
foreshore lands, and coastal areas within public lands, including those presently
declared available for fishpond development. The LUPA, in coordination with the DENR,
the DA, the FARMCs and the LGUs shall set aside a portion of available public lands for
fish propagation, fish sanctuary, conservation, ecological purposes and fisherfolk
settlement areas. Fishponds covered by existing FLA, but, are abandoned or not
Operating efficiently, and are found suitable for mangroves shall be allowed to be
revegetated back as mangrove forest.

SEC. 45. Tourism and Recreation Zone. - The designation of areas for tourism and
resorts near to or over fishery areas or ports thereof shall be with the consent of the
concomed LGUs and FARMCs, and subject to the policies and guidelines set forth in
this Act.


Article Five
Mineral Lands

SEC. 46. Guidelines for the Utilization and Allocation of Land for Mining Purposes. - To
ensure that the objectives of maintaining ecological balance and maximizing economic
returns to mining operations are realized and consistent with RA. No. 7942, the
allocation and utilization of lands for mining purposes shall be guided by the following:
Mining operations shall be undertaken with due consideration to the utilization,
development, and protection of land and other physical resources; Small-scale mining
shall be allowed provided that safeguards are instituted to prevent environmental
degradation of the mining sites and adjacent areas; and, Mineral reservations which had
become non-operational for more, than five (5) years shall be placed under appropriate
surface management by the DENR

SEC. 47. Reversion of Mineral Lands. - All exhausted mineral lands shall automatically
revert to the category of forestlands, unless the DENR has otherwise classified such
areas for other purposes.

SEC. 48. Criteria for the Classification of Mineral Lands as Alienable and Disposable
Lands. - Exhausted mineral lands may be classified as alienable and disposable lands
only upon the satisfaction of all of the following conditions: The slope of the exhausted
mineral lands shall not be above eighteen percent (1 8%); The rehabilitation of
exhausted mineral lands can be accelerated if such areas are released for other
purposes; The area can promote and sustain economic activities that would support
development of settlements without incurring significant environmental problems. The
area shall then be subject to an environmental impact

assessment (EIA), the findings of which shall serve as basis for making any
recommendation on its classification; and The land is found to be environmentally-safe
from natural hazards.

Article Six
Energy Resource Lands

SEC. 49. Guidelines for the Utilization and Allocation of Lands for Energy Resource
Exploration, Development, Production, Utilization and Distribution Purposes. - To
ensure that the objectives of maintaining ecological balance and maximizing the
harnessing of power potential from indigenous energy resources in the most economical
and environmentally-acceptable means are realized, the allocation and utilization of
lands for said purposes shall be guided by the following, consistent with the existing
laws and DOE regulations on energy resources;

(a) Indigenous energy resource exploration and development for the purpose of a
National Energy Resource Inventory and Data Base as well as Energy Resource Block
Map shall be allowed subject to the implementation of complementary watershed
management plans:

(b) Indigenous energy resource exploration, development, production, utilization and
distribution shall be subject to the appropriate requirements and process of the
Philippine E1S System. Each project shall secure an Environmental Compliance


Certificate (ECC) prior to project implementation to ensure adequate and appropriate
environmental management measures and optimum methods for resource access and
recovery utilized. Energy reservations or portions thereof which have been established
to be non-economically viable to operate or are no longer used for energy purposes
shall be released to give way to other land uses subject to existing laws covering energy
reservations.

SEC. 50. Reversion of Energy Resource Lands. - All exhausted indigenous energy
resource lands not covered by proclamations shall automatically revert to the category
of forestlands or agricultural lands, whichever is appropriate, unless the DENR and/or
the DAR respectively classify such areas for other purposes.

SEC. 51. Energy Resource Exploration as a Temporary Land Use. - Premature
conversion of agricultural lands as defined in this Act shall exclude use of the land for
energy resource exploration, which is a temporary use of the land, it being a necessary
activity for the confirmation of the energy resource: Provided, however, That conversion
of the land to a permanent land use shall proceed once the energy resource is
confirmed for production and prior to commercial development: Provided, further, That
the LUPA shall set a lime limit on such exploration as a temporary land use, taking into
account the different factors affecting exploration.

Article Seven
Settlements Development
SEC. 52. Town, City, and Settlements Development. - The development of town, city
and settlements through the zoning ordinances (ZOs) of cities and municipalities shall
be guided by urban zoning standards designed to maximize existing urban spaces and
reasonably restrain urban expansion to be formulated by the LWA and included in
guidelines and standards to be issued under Sections 5 and 9 hereof.

SEC. 53. Settlements with Geo-hazard Areas. - Settlements within gee-hazard areas
may be allowed provided that mitigating and/or protective measures are adopted to
address the potential danger or risk to lives and properly within such settlements. In
coordination with the concerned agencies of the government, the LUPA shall provide
assistance to concerned LGUs and settlers in instituting safely and corrective measures
to address the potential danger or risk.

SEC. 54. Protection of Ecological Harmony. - To ensure the ecological harmony of
towns, cities, and settlements, certain projects which will alter the present use of a
zoned area shall be issued a building permit, business permit, and/or development
permit, as the case may be. The identification of these projects shall be done in
coordination with the concerned LGUs.

SEC. 55. Designation of Waste Disposal Site. - Each city or municipality shall identity,
designate and allocate land within their territorial jurisdiction to serve as waste disposal
site within one (1) year from the effectivity of this Act. The LGUs, in coordination with
the DENR and/or competent authority, shall identify solid waste disposal sites in order


to fast track the conduct of environmental impact assessment (EIA) study and to
facilitate processing of the environmental compliance certificate (ECC). This site or area
shall be identified in the city’s/municipality's CLUP and ZO. For this purpose, cities and
municipalities shall establish their solid waste management program. Likewise, as
provided for under Section 33 of R.A. No. 7160, cities and municipalities may, through
appropriate ordinances, bind themselves towards the establishment of a common solid
waste management program. Within ninety (90) days from the effectivity of this Act, the
DENR, in coordination with concerned agencies, shall promulgate the necessary
guidelines and standards for the formulation and establishment of solid waste
management program by cities and municipalities, and shall submit the same to the
LUPA for review and approval.

SEC. 56. Designation of Socialized Housing Sites in Urban and Urbanizing Areas. -
Each city or municipality in urban and urbanizing areas shall identify, designate and
allocate land within their territorial jurisdiction to ensure the availability of adequate land
to meet the shelter needs of poor residents in their respective city or municipality or to
be used as sites for socialized housing pursuant to Article IV of UDHA. Within ninety
(90) days from the effectivity of this Act, the LUPA, in coordination with the concerned
agencies, and pursuant to existing laws, rules and regulations, shall promulgate the
necessary guidelines for the identification and designation of socialized housing sites.
All cities and municipalities in urban and urbanizing areas shall identify and designate
their socialized housing sites within six (6) months fiom the effectivity of this Act and
must submit the list of these sites and their respective hectarage to the HUDCC.

SEC. 57. Zonification of Identified Sites for Socialized Housing. - These socialized
housing sites shall be identified and designated as socialized housing zones in the
city’s/municipality's CLUP and shall be established through appropriate and approved
zoning ordinances. The current zoning ordinances of the LGUs shall be reviewed and
revised to include these socialized housing zones. These sites shall be used exclusively
for housing that qualifies as socialized housing under the UDHA.

SEC. 58. Valuation of lands for Socialized Housing. - Equitable land valuation
guidelines for socialized housing shall be set by the Department of Finance on the basis
of the market value reflected in the zonal valuation, or in its absence, on the latest real
property tax declaration. For sites already occupied by qualified beneficiaries under the
UDHA and sites identified as Socialized Housing Zones as defined in this Act, the
Department of Finance shall factor into the valuation, the blighted status of the land as
certified by the LGUs or the National Housing Authority.

SEC. 59. Urban Forest or Green. Space. - Each city or highly urbanizing municipality
shall identify, designate, and allocate lands owned by the city or municipality as urban
forest or green space, based on the guidelines and standards to be issued by the DENR
and approved by the LUPA.

Article Eight
Industrial Development Areas


SEC. 60. Designation of Industrial Areas. - The identification and establishment of
industrial development areas shall conform with the provisions of R.A. No. 7916,
otherwise known as the Philippine Economic Zone Authority (PEZA) Law, R.A. No.
7279, or the Urban Development and Housing Act (UDHA), and Section 33 hereof,
taking into consideration the following: Identified network of areas for agricultural
development and protected agricultural areas pursuant to Section 33 hereof; National
policies on the regional dispersal of industries and agri-based industrial development;
Identified growth areas and corridors in the National Development Plan, National
Integrated Protection Area Systems and other protected areas; National Urban
Development Framework; Identified Socialized Housing Zones; National Settlements
Development Plan; and, National Infrastructure Development Plan. The designated
industrial development areas shall become an integral part of the land use plan and
zoning ordinance of the city or municipality where these areas are located

Article Nine
Tourism Development Areas J

SEC. 61. Designation of Tourism Development Areas. - The identification, selection and
development of tourism development areas shall be done in consultation and
coordination with the concerned LGUs, national government agencies, the private
sector, and the affected communities. Consistent with Sections 33 and 34 hereof, these
areas shall likewise include those covered by legislation and executive issuances which
designate specific sites as tourist spots and tourist zones, as well as those identified in
the national and regional tourism master plans. Historical and Cultural Heritage Sites
shall be included in these areas so as to promote their protection, preservation and
development for tourism purposes and related activities.

Designated areas for tourism development shall become part of the CLUPs and ZOs of
the cities or municipalities where these are located.

Article Ten

Infrastructure Development
SEC. 62. Allocation and Use of Land for Infrastructure Development. - Land, whether
public or private, shall be allocated and utilized for priority infrastructure projects that are
supportive of national or local development objectives. The National Economic and
Development Authority (NEDA), in consultation with the concerned NGAs, LGUs and
the private sector shall identify and periodically review, update and/or revise the list of
priority infrastructure projects. In determining and evaluating the list of priority
infrastructure projects, consideration shall be given to those that:
(a) Respond to immediate and vital requirements of the national economy with priority
on food security and self-sufficiency concerns;
(b) Upgrade existing facilities to international standards;
(c) Address the need for sustainable settlements development; and,
(d) Help mitigate the destructive effects of natural disaster-causing phenomena or those
that shall serve as alternatives to existing infrastructures found in natural hazard-prone
areas. Provided, That the provision and implementation of infrastructure support shall
be made compatible with existing environmental conditions and the physical, whether
natural or man-made, and cultural character of the area. Mandatory public


hearings/consultations shall be held prior to the conduct of all infrastructure projects that
will necessarily involve dislocation or displacement of people living in the area:
Provided, further, That the concerned NGA that will implement the infrastructure
projects in areas occupied by the urban poor and in identified socialized housing zones
shall follow the rules on mandatory consultation as provided for in RA 7160, as well as
the rules on just and humane demolitions or eviction under Section 20 of UDHA and
said NGA shall submit a report complying with the aforementioned provisions to the
concerned LGU prior to project implementation.

SEC. 63. Infrastructure Projects Within Environmentally-Critical Areas. - Construction of
priority infrastructure projects within protected, hazard-prone, or environmentally critical
areas shall be allowed provided that mitigating and/or preventive measures are adopted
to address the potential adverse economic, socio-cultural and measures are adopted to
address the potential adverse economic, socio-cultural and environmental impacts that
will emanate from these infrastructure projects subject to the findings and
recommendations of a feasibility study and an environmental impact

assessment in accordance with P.D. Nos. 1586 and 4846. Existing infrastructures found
to be improperly located as well as those posing threats to the environmental integrity of
historic, archeologic, or scientifically significant areas, or impinging on critical
ecosystems may be terminated immediately, or gradually phased out and relocated, or
maintained up to their life span, subject however to mitigating measures: Provided, That
the concerned NGA that will implement the Infrastructure projects in socialized housing
zones are mandated to follow the rules on mandatory consultation as provided for in
R.A. No. 7160, as well as the rules on just and humane demolitions or eviction under
Section 20 of UDHA: Provided, further, That said NGA shall submit a report complying
with the aforementioned provisions to the concerned LGU prior to project
implementation. The DPWH, DOE, DOTC, in coordination with the Concerned NGA, the
LGUs and the private sector shall identify and assess ali major infrastructure projects in
environmentally-critical areas and submit their recommendations to the LUPA within six
(6) months from the effectivity of this Act

Article Eleven
Training, Education, and Value Formation
SEC, 64. Mandatory Curriculum. - In order to create a well informed, responsive and
committed citizenry who value the protection, conservation and development of the
country’s limited land and other physical resources, the State shall mandate the
inclusion of sustainable land use education, or any subject related thereto in the
curricula of primary, secondary and tertiary education.

SEC. 65. Information and Education Campaign. - The LUPA shall coordinate a
nationwide education information campaign in land use and physical planning to be
implemented by local and national government agencies. The DILG and concerned
agencies shall formulaic and implement a land use management capability-building
program for national and local government officials, community leaders, NGOs, POs,
religious sector, and the general public.


CHAPTER V
INCENTIVES, SANCTIONS, AND PENALTIES

Article One
Incentives and Awards

SEC. 66. Formulation of a System of Incentives and Awards. - The “LUPA shall come
out with a system of incentives and awards to LGUs that regularly update their
CLUPs/ZOs within the prescribed period as follows:
(a) Provinces, highly urbanized cities, and independent component cities - once every
ten (10) years or less; and
(b) Component cities and municipalities - once every five ( 5 ) years or less SEC. 67.
Priority in Giving Technical Assistance to LGUs. - In providing technical assistance and
other forms of support related to land use management and implementation — of
development plans, national government agencies (NGAs) shall give priority to cities
and municipalities with approved CLUPs and ZOs.

SEC. 67. Incentives for Voluntary Transfer. - Subject to existing laws and ordinances,
the LUPA, in coordination with the Board of Investments, shall provide for incentives to
affected industries that, within a specified period, would voluntarily transfer to identified
Industrial Development Areas.

Article Two

Sanctions and Penalties
SEC. 68. Fine on Non-Completion and Non-Commencement of Development of
Agricultural Lands with Approved Order of Conversion. - Any landowner and/or hither
designated developer 01: duly authorized representative who e fails to commence
and/or complete the development of agricultural lands with approved order of
conversation shall be penalized, jointly or severally, with any of the following fines
based on the zonal value of the land at the time the fine is imposed:
(a) On failure to commence within one year from the date of conversion order:
(1) Six percent (6%) of the zonal value of the subject land for the first three (3) hectares,
(2) Fifteen percent (15%) of the zonal value of the subject land for the
next three (3) hectares, and
(3) Thirty percent (30%) of the zonal value of the subject land for the
remaining area. Provided, That in such case, the order of conversion shall be deemed
revoked automatically and the land shall revert back to its original agricultural use and
shall be covered by the DAR through compulsory acquisition for distribution to qualified
beneficiaries.
(b) On failure to complete fifty percent (50%) of the approved conversion plan within a
specified time frame, the DAR shall impose a fine equivalent to fifty percent (50%) of the
zonal value of the subject land and shall automatically issue an order revoking the
conversion plan on the undeveloped portion which shall automatically revert to its
original use as agricultural land. The same shall be covered, under the CARP and
processed for land distribution as soon as possible.


SEC. 69. Authority to Impose Fine. - The DAR shall impose the penalty imposed under
the preceding section.

SEC. 70. Withdrawal of Local Development Permits and/or Licenses. — Upon receipt of
notice from the DAR, the concerned agencies, city or municipality shall withdraw and/or
revoke any development permit and/or oilier licenses that may be necessary to develop
the agricultural land subject of conversion.

SEC. 71. Utilization of Fines. - The fines collected under Section 70 hereof shall
automatically accrue to the Agrarian Reform Fund consistent with the provisions of R.A.
Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law.

SEC. 72. Failure to Formulate, Enforce, and/or Implement the CLUPs and ZOs. -
Consistent with due process, the LUPA in coordination with the DILG shall investigate,
review and recommend the filing of charges against local chief executives and other
local officials and employees responsible for the formulation, enforcement, and/or
implementation of the CLUPs in case of any of the following: Failure to implement and
enforce the CLUP/ZO due lo negligence of duty; Failure to provide appropriate
budgetary allocation to effect its implementation; Failure to complete the preparation of
the CLUP despite the availability of funds, resources, and support by the Sanggunian
concerned; and, Failure of the CLUPs/ZOs to conform to the prescribed national
guidelines and standards as provided for in Section 5 hereof and thereafter, with NPFP.
as stated in Section 9 hereof, Any public official or employee, regardless of whether or
not elected or appointed or holding office or employment in a casual, temporary,
holdover, permanent or regular capacity, found to be responsible to any of the foregoing
acts, after due notice and hearing by the appropriate body or agency,.shall be punished
with forfeiture of salaries and allowances and suspension from:

(a) Six (6) to nine (9) months, in case of non-implementation of the CLUP; or

(b) Three (3) to six (6) months, in case of non-completion of the CLUP.

SEC. 74, Premature or Illegal Conversion. - Paragraph 2, Section 11 of R.A. No. 8435,
is hereby amended and shall read as follows: "Any person found guilty of premature or
illegal conversion as defined in this Act shall be penalized with imprisonment of seven
(7) to twelve (12) years, or a fine equivalent to fifty percent (50%) of the market value of
the subject land, or both, at the discretion of the court and accessory penalty of
forfeiture of the land and any improvement thereon: Provided, that if the offender is a
juridical person, the penalty shall be imposed on the responsible officers thereof." In
addition, the DAR may impose the following penalties, after determining, in an
administrative proceeding, that violation of this Act has been committed:

(a) Cancellation or withdrawal of the authorization for land use conversion; and,

(b) Blacklisting or automatic disapproval of pending or subsequent conversion
applications that they may file with the DAR.

SEC. 75. Person(s) Abetting Illegal Conversion. - Any person initiating, causing,
inducing, or abetting illegal conversion shall, upon conviction, be penalized with
imprisonment of seven (7) to twelve (12) years and a fine of not less than one hundred


thousand (100,000.00) pesos, or both, at the discretion of the court:| Provided, That if
the offender is a public official or employee, the penalty shall, in addition thereto,
includes perpetual disqualification and forfeiture of all of his/her benefits and
entitlements accruing to his/her public position.

SEC. 76. Imposition of Penalty for Reclassification of Protected Agricultural Lands. -
Any person initiating, causing, inducing, or abetting the reclassification of protected
agricultural areas as defined in Section 33 hereof into non-agricultural uses shall be
penalized with imprisonment of seven (7) to twelve (12) years and a fine of not less than
one hundred thousand (100,000.00) pesos, or both, at the discretion of the court:
Provided, That if the offender is a public official or employee, the penalty shall, in
addition thereto, include perpetual disqualification and forfeiture of all his/her benefits
and entitlements accruing to his/her public position; Provided, further, That if the
offender is a juridical person, the penalty shall be imposed on the responsible officers
thereof.

CHAPTER VI
MISCELLANEOUS, TRANSITORY AND FINAL PROVISIONS

Article One
Mandatory Review

SEC. 77. Mandatory Review Every Seven Years. - Congress shall undertake a
mandatory review of this Act at least once every seven (7) years from the date of
effectivity, or as often as it may deem necessary to ensure that land use policies and
guidelines remain responsive to changing circumstances. For this purpose, Congress
may call on the LUPA to undertake the necessary researches, consultations and public
hearings.

Article Two
Transitory Provisions
SEC. 78. Convening of the LUPA. - Within thirty (30) days after the effectivity of this Act,
the Executive Secretary, as Chairman, shall convene the LUPA. The Deputy Director
General for Land Use of NEDA and the Chief Executive Officer of the HLURB shall sit
temporarily as ex-officio members of the LUPA Executive Board until such time that a
regular Administrator shall have been appointed by the President.

SEC. 79. Preparation of Implementing Rules and Regulations and Other Immediate
Tasks. - Within one hundred twenly (120) days from the effectivity of this Act, the LUPA,
in coordination with the Senate and House Committees on Natural Resources,
Agriculture, Agrarian Reform, Housing and Urban Development, Rural Development,
National Cultural Communities, Appropriations and Ways and Means, shall undertake
the preparation of the implementing rules and regulations of this Act with mandatory
consultations with social development NGOs and POs and the private sector. Within the
same period, the LUPA shall also review existing rules and regulations on land use, and
bases, therefrom, revise such rules and regulations, or cause concerned agencies to
revise them for the efficient and effective implementation of the provisions of this Act. All


concerned national government agencies and bodies shall inform the LUPA of the
status of the implementation of such rules and regulations. The LUPA shall likewise
undertake the organization of its units and create special task forces and committees to
assist it in its undertakings. Within one (1) year from the effectivity of this Act, the LUPA
shall review and revise, if appropriate, all existing national planning guidelines and
standards to facilitate the exercise of land use planning and zoning functions of local
government units. All existing rules and regulations shall be in force and effect unless
revoked by the LUPA or other competent authorities.

SEC. 80, Effectivity of the Creation of LUPA. - Until such time that the LUPA shall have
been organized and fully operational, the NLUC, HLURB, and other agencies
performing functions related to land use shall continue exercising such powers and
functions and their personnel shall receive the same salary, emoluments and privileges.
Hiring, separation, replacement and appointment of personnel shall be in accordance
with existing Civil Service rules and regulations: Provided, however, That in filling up the
personnel requirements of the LUPA, preferential consideration shall be given to
existing officers and employees of the NLUC, HLURB and the other agencies referred
to above, who will be displaced: Provided, further, That they possess the appropriate
and necessary skills and eligibility and meet the qualification standards for the positions.

SEC. 81. Appropriations. - The amount necessary to carry out the provisions of this Act
shall be included in the General Appropriations Act of the year following its enactment
into law and thereafter. In case such amount is insufficient, the LUPA may request for
augmentation of funds from the Department of Budget and Management (DBM).
Thereafter, the LUPA shall be included in the General Appropriations for the next year.
Congress shall appropriate an amount to the DENR necessary for it to conduct the
classification and demarcation activities needed in the final inventory of all lands as
provided herein.

SEC. 82. Review of Existing Land Use Plans. - Provinces, cities and municipalities with
existing land use plans shall review, revise, reconcile and harmonize (he same with the
guidelines and standards set forth under this Act.

Article Three
Final Provisions
SEC. 83. Repealing Clause. - Section 9 of Republic Act No. 8435 and all other laws and
administrative issuances are hereby modified by Section 33 hereof. All other general
and special laws, acts, decrees, executive orders, proclamations, administrative rules
and regulations, or part thereof, inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

SEC. 84. Non-impairment Clause. - Nothing in this Act shall be construed as to
diminish, impair, or repeal rights recognized, granted, or available to marginalized or
basic sectors under existing laws including but not limited to R.A. Nos. 7279, 6657,
8371 and 8550.


SEC. 85. Separability Clause. - If for any reason any section or provision of this Act, or
any portion thereof, or the application of such section, provision or portion to any
person, group or circumstances is declared invalid or unconstitutional, the remainder of
this Act or the application of such section, provision or portion thereof to other persons,
groups or circumstances shall continue to be in full force and effect.

SEC. 86. Effectivity. - This Act shalll lake effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation,

Approved,