HOUSE OF REPRESENTATIVES
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REPUBLIC OF THE PHILIPPINE}
HOUSE OF REPRESENTATIVES

Quezon City
BY:
SEVENTEENTH CONGRESS
First Regular Session Bai reise TION UNIT
1843 L=SSAN ince service

House Bill No.

Introduced by MAGDALO Party-List Representative
‘HON. GARY C. ALEJANO

Explanatory Note

On 02 November 1973, the International Convention for the Prevention of Pollution from Ships
(MARPOL) was adopted by the International Maritime Organization (IMO). The Protocol of
1978 was adopted in response to a spate of tanker accidents in 1976-1977, hence the convention
was more popularly known as the MARPOL 73/78. The Convention includes regulations aimed
at preventing and minimizing pollution from ships — both accidental pollution and that from
routine operations — and currently includes six (6) technical Annexes.

The IMO entered into force in 1958 and provided machinery for cooperation among
Governments in the field of governmental regulation and practices relating to technical matters
of all kinds affecting shipping engaged in international trade; to encourage and facilitate the
general adoption of the highest practicable standards in matters concerning maritime safety,
efficiency of navigation and prevention and control of marine pollution from ships. The
Philippines has been a member of the IMO since 1964 and has ever since committed our nation’s
support in promoting maritime safety.

In 1976, Presidential Decree No. 976 was promulgated to prevent and control the pollution of
seas by the dumping of wastes and other matter which create hazards to human health, harm
living resources and marine life, damage amenities, or interfere with the legitimate uses of the
sea within the territorial jurisdiction of the Philippines. However, said law was not sufficient to
deal with pervasive emissions and discharges of polluted effluents and wastes from ships.

As such, this proposed measure seeks to address the limitations and weaknesses of PD 976. More
specifically, this bill intends to implement the provisions of MARPOL 73/78, an International
Convention for the Prevention of Pollution from Ships, as modified by protocol of 1978 and
other protocols and annexes related thereto. This measure shall cover all ships, Philippine ships
wherever they may be found and foreign-flagged ships.

Furthermore, the bill seeks to streamline jurisdiction, responsibilities, and functions of the
Department of Transportation and Communication (DOTC), the Philippine Coast Guard (PCG),
the Maritime Industry Authority (MARINA), and the Philippine Ports Authority (PPA). It also
provides prohibited acts and the corresponding penalties for violations, both administrative and
criminal. The bill also creates the Marine Pollution Adjudication Board.

In view of the foregoing, and to counter the rampant degradation of the marine environment,
immediate passage of this measure is earnestly sought.

-

HO! '. ALEJANO,


eCeryraunawn

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

843

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
PREVENTING AND CONTROLLING POLLUTION FROM SHIPS AND PROVIDING
PENALTIES THEREFOR

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

CHAPTERI
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the “Prevention of Pollution
from Ships Act of 2016”.

SEC. 2. Declaration of Policy. — The State shall hereby prevent and control pollution
resulting from the operations of ships in order to protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony of nature.

It shall likewise be the policy of the State to implement the Convention as it is herein

defined, including its amendments and protocols that have been ratified by the Philippines.

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

(a) Atmospheric discharges or emissions from ships refer to any discharge or emission
of nitrogen oxides, sulfur oxides, volatile organic compounds and other ozone depleting
substances when such discharges do not meet the requirements of the Convention

(b) Chemical tanker refers to a ship constructed or adapted for the carriage in bulk of
any liquid product listed in the International Bulk Chemical Code or any noxious liquid
substance.

(©) Coastal state refers to the relationship of the Philippines to a foreign-flagged vessel
traversing Philippine waters and its corollary right to exercise jurisdiction and regulatory control
over such vessel.

(@) Convention refers to:

(1) The International Convention for the Prevention of Pollution from Ships 1973, as
amended by the Protocol of 1978 or MARPOL 73/78:


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(2) Protocol I and II of MARPOL 73/78;

(3) Annexes I, II, III, IV, V and VI, their relevant appendices, any technical code
referred to, as well as any amendment to any of these documents which may enter into force in
accordance with the procedure referred to in Article 16 of MARPOL 73/78:

(4) Any subsequent protocol of and amendment to the Convention which the
Philippine Government may ratify necessary to advance the purposes of this Act;

(5) Any mandatory Code referred to in the Convention or any subsequent protocol to
the Convention which the Philippine Government may ratify or any amendment which may
enter into force in accordance with Article 16 of the Convention.

(¢) Discharge refers to any release, however caused, of harmful substances from a ship,
including any escape, disposal, spilling, leaking, pumping, emitting or emptying of such
substances, except:

(1) Release of harmful substances directly arising from the exploration, exploitation

and associated off-shore processing of sea-bed mineral resources; or

(2) Release of harmful substances for purposes of legitimate scientific research on
pollution abatement or control.

(f) Dirty ballast refers to water carried in the cargo tank.

(g) Flag state refers to the relationship of the Philippines to vessels registered under its
flag and the corollary right to exercise jurisdiction and regulatory control over these vessels.

(h) Foreign-flagged ship refers to any ship registered in another State or authorized to
fly its flag, whether or not it is a State party to MARPOL 73/78, when found in any of the ports,
terminal facilities or waters within the jurisdiction or sovereignty of the Philippines.

(i) Garbage refers to all kinds of victual, domestic and operational waste, excluding
fresh fish and parts thereof, generated during the normal operation of the ship and liable to be
disposed of continuously or periodically.

(j)_ Harmful substance in package form refers to those substances which are identified as
marine pollutants in the International Maritime Dangerous Goods (IMDG) Code and are held in
forms of containment specified for harmful substances in the IMDG Code. Other harmful
substances in package form shall include substances identified in accordance with the following
criteria as provided in the Convention:

(1) Those which are bio-accumulated to a significant extent and known to produce a
hazard to aquatic life or to human health; or
(2) Those which are bio-accumulated with attendant risk to aquatic organisms or to
human health with a short retention of the order of one (1) week or less; or
(3) Those which are highly toxic to aquatic life.
(k) Incident refers to an event involving the actual or probable discharge into the sea, or

emission into the atmosphere, of a harmful substance or effluents containing such a substance.


————————————————————————ooV—VOVOO WoO

1 () Marine casualty refers to any accident or incident of navigation which results in
2 producing a harmful, deleterious or damaging effect upon the marine environment,

3 (m) Master refers to any person-having command or charge of any ship, including a boat
4 captain.

5 (n) Noxious liquid substance refers to any substance identified as such under the
6 relevant chapter of the International Bulk Chemical Code and/or provisionally assessed as such

7 by Annex II of the Convention.
8 (0) Oil refers to petroleum in any form including crude oil, fuel oil, sludge, oil refuse
9 and refined products, other than petrochemicals which are classified as noxious liquid
10 substances in accordance with Annex II of the Convention, and including substances listed
11 under Annex I of the Convention.
2 (p) Oily mixture refers to a mixture with any oil content.
B (q) Oil tanker refers to a ship constructed or adapted primarily to carry oil in bulk in its

ion carriers or any other tanker when it is carrying cargo or

14 cargo spaces and includes combin
15 part cargo of oil in bulk

16 (2) Other harmful substance refers to any substance other than oil, noxious liquid
17 substances, harmful substances in package form, garbage, and sewage, which, if introduced
18 into the sea, is liable to create hazards to human health, to harm living resources and marine life,
19 to damage amenities or to interfere with other legitimate uses of the sea, and includes, but is not

20 limited to, atmospheric discharges and other substances identified as marine pollutants in the

21 Convention, which may be subject to control pursuant to the provisions of this Act and other
22 relevant environmental laws of the Philippines.

23 (5) Owner refers to the person registered as the owner of the ship or who assumes the
24 — operation of the ship. or, in the absence of registration, the person owning the ship or the
25 bareboat charterer of the ship, and, in the case of a ship owned by a State and operated by a
26 company which in that State is registered as the ship’s operator, “owner” shall include such
27 State.

28 () Philippine ship refers to any ship registered under the laws of the Philippines and
29 entitled to fly its flag wherever the ship may be found.

30 (u) Philippine waters refer to the internal waters, archipelagic waters, territorial seas,
31 waters within the contiguous and exclusive economic zones.

32 (v) Port state refers to the relationship of the Philippines to a foreign-flagged vessel

33 which may be found in any of its ports, terminal facilities or harbors and its corollary right to

34 exercise jurisdiction and regulatory control over such vessel.
35 (w) Sewage refers to:

36 (1) Drainage and other wastes from any form of toilets and urinals;

37 (2) Drainage from medical premises (dispensary, sick bay, etc.) via wash basins,

38 wash tubs and scuppers located in such premises;


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(3) Drainage from spaces containing living animals; or

(4) Other waste waters when mixed with the drainages defined above.
(x) Ship refers to a vessel of any type operating in the marine environment and includes
pleasure crafts, fishing vessels, hydrofoil boats, air-cushion vehicles, submersibles, floating

craft, drilling rigs and fixed or floating platforms.
(y) Undue delay refers to a delay that is unreasonable and unnecessary in light of the
particular conditions of the ship, the ship's cargo, destination and schedule, and in light of the

purpose and scope of the investigation, inspection or other cause for detaining the ship.

CHAPTER IL
SCOPE AND APPLICATION

SEC. 4. Scope and Application of this Act. — Unless otherwise specified herein, this Act
shall apply to:

(a) All Philippine ships, wherever they may be:

(b) All foreign-flagged ships in Philippine waters whether or not they are registered with
State parties to the Convention; and

(c) All other ships operating within the Philippine waters: Provided, That the provisions
of the Convention setting forth technical requirements that ships must meet which are
inapplicable or impractical in Philippine local setting may be suspended or equivalents
prescribed therefor upon determination by the Department of Transportation and
Communications (DOTC), subject to public consultation: Provided, further, That nothing herein
shall prevent enactment of any law providing for standards, requirements or regulations higher

than those provided for by the Convention,

SEC. 5. Exemptions. — This Act shall not apply to warships, naval auxiliary ships, and
man-of-war vessels: Provided, That all government or non-commercial ships shall be exempted
from the coverage of this Act during emergency response cases: Provided, however, That the
DOTC, through the Maritime Industry Authority (MARINA), the Philippine Coast Guard
(PCG), the Philippine Ports Authority (PPA) and other concerned agencies, shall adopt
appropriate measures that will ensure that these ships operate, so far as is reasonable and
practicable, in a manner consistent with this Act. Provided, finally, That the measures will not

impair the operational capabilities of these ships.


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CHAPTER II
EXERCISE OF JURISDICTION OVER SHIPS

SEC. 6. Powers and Functions of the Department of Transportation and
Communications (DOTC). ~ The DOTC shall be the principal government agency responsible
for the overall implementation and enforcement of this Act and any requirement of the
Convention. For this purpose, the Secretary of the DOTC shall exercise the following general
powers and functions:

(a) Oversee the implementation of this Act and coordinate the efforts of concerned
agencies;

(b) Formulate a comprehensive program to prevent or minimize marine pollution from

ships in coordination with the Department of Environment and Natural Resout (DENR), the

Department of Agriculture (DA), the Department of the Interior and Local Government (DILG),
the Department of Energy (DOE), port authorities and other relevant agencies and stakeholders;

(c) Constitute the Marine Pollution Adjudication Board (MPAB);

(d) Reorganize or streamline the functions of its different line, staff, and attached or
bureaus, authorities, or agencies for purposes of the effective and efficient implementation of
the provisions of this Act; and

(e) Exercise powers and perform other functions as may be necessary to carry out its

duties and responsibilities under this Act.

SEC. 7. Powers and Functions of the Maritime Industry Authority. ~ The Maritime
Industry Authority (MARINA) shall have the sole and exclusive authority and responsibility to
ensure that environmental and pollution regulations and standards for the construction and
equipment of Philippine vessels, before they are allowed to fly the Philippine flag, and/or as
part of their registration, are complied with. For this purpose, the MARINA shall have the
following duties and functions:

(a) Ensure that all Philippine ships are constructed and equipped with any fitting, material,
appliance or apparatus deemed appropriate and effective for the prevention of any discharge or
emission of harmful substances in consonance with the requirements of the Convention;

(b) Survey all Philippine ships for purposes of the provisions of the immediately
preceding paragraph, which function may be delegated to MARINA-recognized organizations

through a deputation process to be formulated pursuant to this Act: Provided, That, except for

direct replacement, no change in the ship’s structure, equipment, fittings, arrangements and
materials shall be made without the approval of the MARINA;

(c) Issue the required statutory certificates to all Philippine ships;

(@) Review and revise, whenever appropriate, the existing system of certification, survey,

inspection and monitoring of ships, with respect to pollution prevention to ensure efficiency and


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transparency, consistent with the overall management of the maritime sector and in accordance
with the requirements of the Convention;

(e) Conduct surveys and issue certificates or endorsements to foreign ships registered with
another State party, if so requested by a State which is a party to the Convention;

(8) Require ships to keep and maintain relevant record books in accordance with the
Convention;

(g) Suspend, withdraw or revoke any certificate it may have issued to any Philippine ship
found not compliant with this Act and with rules and regulations promulgated therefor;

(h) Accredit, appoint and authorize recognized organizations to act on its behalf and, for
this purpose, execute the requisite memorandum of agreement defining the extent of powers that
may be exercised by the recognized organizations including the following:

(1) Perform and conduct statutory surveys on Philippine ships;

(2) Require repairs on a Philippine ship pursuant to findings resulting from port state
inspection;

(3) Carry out surveys requested by port state authorities; and

(4) Withdraw any statutory certificates if appropriate corrective action is not taken
by the Philippine ships.

(i) Provide the International Maritime Organization (IMO) with a list of recognized
organizations authorized to act on behalf of the Philippines, together with the specific
responsibilities they are empowered to perform and the conditions of the authority delegated to
them;

() Impose, fix, collect and receive, in accordance with the duly approved schedules, fees
necessary for the survey and certification of ships pursuant to this Section. The fees shall be

imposed and collected in order to recover the cost for rendering the service and shall not be used

in order to impose a penalty: Provided, That excessive fees, multiple fees and duplicative fees
shall at all times be avoided;

(k) Issue rules and regulations necessary to implement the provisions of this Section:
Provided, That the rules and regulations shall be in consonance with the Convention and shall
not change or in any way amend or be contrary to the intent and purposes of this Act;

(1) Provide its officers and personnel with adequate training and continuing education to
ensure an efficient and professional pollution regulatory machinery;

(m)Impose and collect fees and charges in connection with the performance of its
functions under this Section, which fees and charges shall accrue to the Marine Environmental
Management Fund (MEME) established under Section 42 of this Act; Provided, That the fees
shall be imposed and collected in order to recover the cost for rendering the service and shall
not be used in order to impose a penalty: Provided, further, That excessive fees, multiple fees

and duplicative fees shall at all times be avoided;


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(n) Hear, adjudicate and impose such fines and penalties on Philippine ships which shall
fail to comply with the rules and regulations issued pursuant to this Section; and
(0) Exercise such powers and perform such other functions as may be necessary to carry

out its duties and responsibilities under this Act.

SEC. 8. Powers and Functions of the Philippine Coast Guard. ~ Unless otherwise
provided under Section 9 of this Act, the Philippine Coast Guard (PCG) shall have the sole and
exclusive authority and responsibility to enforce environmental and pollution regulations and
standards to all ships which may be operating within Philippine waters, or in ports, terminal
facilities or harbors. It shall include the authority to board and inspect ships to ensure
compliance with such regulations and standards.

For this purpose, the PCG shall have the following duties and functions:

(a) Ensure that all ships are operated and certificated in accordance with the requirements
of the Convention;

(b) Inspect the certificates and record books required of any ship pursuant to Section 12 of
this Act;

(©) Conduct a physical inspection of the ship if there should be clear grounds for believing
that the condition of the ship or its equipment does not correspond substantially with what is
stated in the ship’s certificates;

(d) Investigate any complaint involving the alleged violation of the Convention committed
by a ship regardless of source of the complaint or the location of the violation and request the
submission of evidence which the complainant may have regarding the alleged violation;

(e) Request the assistance of any other State whose cooperation may be useful to the
investigation against a ship;

(0) Detain a ship pursuant to Section 16 of this Act;

(g) Require a ship to proceed to the nearest repair yard and ensure that the ship does not
leave until it can proceed to sea without posing an unreasonable threat or harm to the marine
environment;

(h) Initiate proceedings against any person for violation of this Act when sufficient
evidence exists with respect to the alleged violation;

(i) Inform the complainant and the International Maritime Organization (IMO) of the
results of the investigation and any action taken against the ship operator of the Philippine ship

in respect of any alleged violation;

() Deny entry of a foreign-flagged ship to any Philippine port or terminal facilit
fails to comply with the requirements of the Convention;

(k) Coordinate with, and inform, the diplomatic representative of the State, or the flag
State administration, of any violation of the foreign ship and any action taken against the ship;


(1) Inspect, verify and investigate a ship if it has discharged any harmful substance into

the marine environment under any of the following circumstances:
(1) It has reasonable grounds to believe that a discharge has occurred in Philippine
waters;
(2) Itreceives a report from another coastal State: or:
(3) Itreceives a request from the flag State;

(m) Forward the report of any violation committed by the ship with respect to any
discharge of harmful substances into the marine environment, to the ship’s flag state
administration, together with any evidence it may have;

(n) Immediately inform any affected coastal State of the discharge:

(0) Ensure that the ship is not unduly delayed or detained;

(p) Order into port any ship found in the territorial seas if there are clear grounds to

believe that the ship has discharged harmful substances into the marine environment;

arge
or emission which may be in violation of this Act and of the requirement of the Convention

(q) Establish procedures for reporting incidents involving any actual or probable di

consistent with the reporting requirements under this Act;

() Require all ships and aircrafts registered under the Philippine flag to immediately
report any marine casualty which they witnessed while navigating;

(s) Upon inquiry or investigation, cause or recommend regulatory or other appropriate
actions to be taken in connection with any violation of the provisions of this Act;

() Cooperate with the government of other States which are members of international
organizations on the prevention of pollution from ships concerning the detection of violations
and enforcement of this Act using all appropriate and practicable measures of detection and
environmental monitoring, adequate procedures for reporting and accumulation of evidence;

(u) Provide its officers and personnel with adequate training and continuing education to
ensure an efficient and professional pollution regulatory machinery;

(v) Adopt a continuing information campaign on marine resources protection aimed at
developing public awareness of the health hazards and other adverse effeets of ship pollution;

(w) Administer the MEMF;

(x) Issue such rules and regulations necessary to implement the provisions of this Act:
Provided, That the rules and regulations shall be in consonance with the Convention and shall
not change or in any way amend or be contrary to the intent and purposes of this Act; and

(y) Exercise powers and perform other functions as may be necessary to carry out its

duties and responsibilities under this Act.

SEC. 9. Role of the Department of Environment and Natural Resources (DENR). ~ For
purposes of this Act, the DENR shalll have the following powers and function



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(a) Provide technical assistance on pollution prevention to the concerned government
agencies in the implementation of this Act;

(b) Establish guidelines for the identification of harmful substances in packaged form in
accordance with the guidelines and listings provided by the IMDG Code in coordination with
the PCG, PPA and other port authorities;

(©) Set effluent and emission standards for ships in accordance with the requirements of
the Convention.

(d) For floating craft, drilling rigs and fixed or floating platforms, and vessels which
primarily operate or undertake business, commercial or industrial activities while anchored, the
DENR shall enforce, in coordination with the PCG, the applicable provisions of Presidential
Decree No. 1586 otherwise known as Environmental Impact Statement System Law, Republic
‘Act No. 8749 otherwise known as the Philippine Clean Air Act, and Republic Act No. 9275
otherwise known as the Philippine Clean Water Act; and,

Monitor, in coordination with the PCG, hazardous and radioactive wastes being
transported by ships in the country, and prevent the disposal thereof and/or the entry of ships

carrying the same.

CHAPTER IV
PREVENTION OF POLLUTION FROM SHIPS

SEC. 10. Prohibition of Discharge or Emission of Harmful Substances. ~ It shall be
unlawful for any person to discharge or emit the following substances from any Philippine ship,
or from any other ship while it is within Philippine waters:

(a) Oil, whether carried as cargo or as bunker;

(b) Oily mixture, whether generated from cargo operations or from machinery spaces;

(©) Noxious liquid substances carried in bulk:

(d) Harmful substances in packaged form;

(e) Sewage:

(f) Garbage; and

(g) Other harmful substances, whether generated during the operation of the ship or not.

The provisions of this section shall not apply in the following cases:
(1) The discharge or emission is necessary for the purpose of securing the safety of a

ship and those on board or saving life at se

r
(2) The discharge results from unintentional damage to the ship or its equipment,
and all reasonable precautions have been taken after the occurrence of the damage or the

discovery of the discharge for the purpose of preventing or minimizing the discharge, unless the


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master, owner or agent of the ship acted either with intent to cause damage or recklessly and
with knowledge that damage would probably result; or

(3) The discharge is for the purpose of combating specific pollution incidents in
order to minimize the damage from pollution.

For this purpose, the DOTC shall promulgate rules and regulations to implement the

immediately preceding paragraph as regards its application in general, or with respect to the
following considerations in consonance with the requirements of the Convention:

(1) Classes of ships:

(2) Descriptions of harmful substances:

(3) Disposal or discharge of these substances in prescribed circumstances; and

(4) Areas of the sea.

SE

. 11. Immediate Report of Discharges of Harmful Substances. — If any actual or
probable discharge of any harmful substance occurs from any Philippine ship into any part of
the sea or atmosphere, the master shall immediately report the incident to the nearest affected
coastal State and to the DOTC.

If any actual or probable discharge of any harmful substance occurs from any Philippine
ship or foreign-flagged ship while it is operating in Philippine waters, the master of the ship
shall immediately report the occurrence to the PCG. The PCG shall immediately inform any
affected coastal State. If a foreign-flagged ship is involved, the PCG shall immediately inform
the flag State of the ship,

If the master of the ship fails to report the occurrence, or the discharge occurs in
circumstances where the ship has been abandoned, the owner, charterer, manager and operator
of the ship or an agent of the owner, charterer, manager and operator of the ship shall without

delay, report the incident to the DOTC.

SEC.12. Record Books. — Philippine ships and all ships within Philippine waters shall
maintain on board record books in the English language, whether as part of their official
logbook or not. For this purpose:

(a) Every oil tanker which is one hundred fifty (150) gross tonnage or more and every
ship, other than an oil tanker which is four hundred (400) gross tonnage or more shall be
provided with, and shall be required to maintain, an Oil Report Book Part I for Machinery
Space Operations in accordance with the requirements of the Convention:

(b) Every oil tanker which is one hundred fifty (150) gross tonnage or more shall be
provided with, and shall be required to maintain, an Oil Record Book Part II for Cargo/Ballast
Operations in accordance with the requirements of the Convention:

(©) Every chemical tanker shall be provided with, and shall be required to maintain, a
Cargo Record Book in accordance with the requirements of the Convention; and

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(d) Every ship which is four hundred (400) gross tonnage or more and every ship which
is certified to carry fifteen (15) persons or more shall be provided with, and shall be required to
maintain a Shipboard Garbage Management Plan in accordance with the requirements of the

Convention.

SEC. 13. Reception Facilities. — Port authorities shall ensure that public and private

ports and terminal ports in the Philippines are appropriately and adequately provided with

facilities to meet the needs of ships for the reception of its oily residues, oily mixtures, dirty
ballast, tank washing water, noxious liquid substances, sewage, garbage, ozone depleting
substances, and equipment containing such substances, and for cleaning of exhaust gases in
consonance with this Act and the requirements of the Convention.

For this purpose, port authorities shall: (a) determine and establish the most effective

and efficient means for meeting the internationally-accepted requirements with respect to

reception fac e ports without causing ships undue delay; (b) formulate

ties in public and pri
and implement an integrated waste management system for the use and operation of reception
and treatment facilities in coordination with the DENR and the PCG; and (c) coordinate with
the DENR and concerned local government units (LGUs) on the proper handling and disposal
of wastes collected at ports.

Port authorities may accredit or enter into agreements with private entities in relation to

the establishment and operation of reception and treatment facilities upon verification of

compliance with standards established for said facilities by the DENR and PCG.

SEC. 14. Use of Reception Facilities. — All ships entering or availing the services of
ports, terminals and repair ports shall use reception facilities established pursuant to the
immediately preceding section, subject to the integrated waste management system to be

established by port authorities.

SEC. 15. Denial of Entry. — Should there be a probability that a foreign-flagged ship
has violated or may violate the requirements of this Act, or the rules and regulations

promulgated therefor, the ship may be denied entry to any port in the Philippines.

SEC. 16. Detention of Ships. — Ships shall be detained in any of the following cases:
(a) The fine or fines imposed on ship, owner or operator of the ship pursuant to Chapter 5
of this Act, except those imposed for violations of administrative regulations under Sections 27,
28 and 29 of this Act, have not been p:
(b) The condition of the ship does not substantially correspond with what is stated in the

ship’s certificates;

(©) The ship does not hold valid ship certificates;

1


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(d) There are reasonable or probable grounds to believe that:
(1) The ship incurred a pollution cost liability under Section 33 of this Act;
(2) The ship violated any of the requirements of this Act or rules and regulations
promulgated therefore; and
(3) The ship caused harm or damage or exhibited a reasonable environmental threat to
the marine environment.

A ship detained under paragraph (d) of this section may be released after the owner of
the ship posts with the Marine Pollution Adjudication Board (MPAB) established under Section
35 of this Act, an adequate cash bond, insurance guaranty, or protection indemnity guaranty or a
combination thereof, as approved by the MPAB, to cover the liability of the owner, master or

agent of the ship under this Act.

CHAPTER V
FINES, PENALTIES AND LIABILITIES.

SEC. 17. Imposition of Fines, Penalties and Liabilities. — Except for fines and
penalties for violations of administrative regulations under Sections 27, 28 and 29 of this Act,
all fines and penalties imposed for violations of the provisions of this Chapter, or the Philippine
Clean Air Act and the Philippine Clean Water Act, whenever applicable, shall be imposed by
the MPAB established pursuant to Section 35 of this Act.

For this purpose, an appropriate fine rating system shall be established by the MPAB,
taking into consideration degree of willfulness, negligence or recalcitrance of the master, owner
or operator of the ship, their history of noncompliance and the gravity of the damage caused by

the ship to the environment.

SEC. 18. Discharge or Emission of Harmful Substances. — A ship which is found to
have discharged or emitted harmful substances under Section 10 of this Act shall be liable to the
following fines:

(a) In the case of a Philippine ship, unless the discharge or emission is committed and
appropriately fined in other States’ jurisdiction:

(1) For oil or oily mixture under paragraphs (a) and (b) of Section 10 of this Act ~ not
less than Two hundred thousand pesos (Php200,000.00) but not more than Ten million pesos
(Php10,000,000.00);

(2) For noxious liquid substances or harmful substances in packaged form under
paragraphs (c) and (4) of Section 10 of this Act — not less than Two hundred thousand pesos
(Php200,000.00) but not more than Ten million pesos (Php10,000,000.00);

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(3) For sewage or garbage under paragraphs (e) and (f) of Section 10 of this Act — not
less than Fifty thousand pesos (PhpS0,000.00) but not more than Two million pesos
(Php2,000.000.00); and

(4) For other harmful substances as defined in this Act — not less than Two hundred
thousand pesos (Php200,000.00) but not more than Ten million pesos (Php10,000,000.00).

(b) In the case of a foreign-flagged ship:

(1) For oil or oily mixture under paragraphs (a) and (b) of Section 10 of this Act ~ not
less than Fifty thousand US dollars (US$50,000) but not more than Five million US dollars
(US$5,000,000), or its equivalent in Philippine pesos;

(2) For noxious liquid substances or harmful substances in packaged form under
paragraphs (c) and (d) of Section 10 of this Act — not less than Fifty thousand US dollars
(US$50,000.00) but not more than Three million US dollars (US$3,000,000.00), or its
equivalent in Philippine pesos:

(3) For sewage or garbage under paragraphs (e) and (1) of Section 10 of this Act ~ not
less than Ten thousand US dollars (US$10,000.00) but not more than One million US dollars
(US$1,000,000.00), or its equivalent in Philippine pesos; and

(4) For other harmful substances as defined in this Act ~ not less than Fifty thousand
US Dollars (US$50,000.00) but not more than Five million US dollars (US$5,000,000.00), or
its equivalent in Philippine pesos.

Any person directly or negligently responsible for the discharge or emission into
Philippine waters or atmosphere shall be liable to a fine of not less than Five thousand pesos
(Php5,000.00) but not more than Five million pesos (Php5,000,000.00) and, whenever
appropriate, to the costs of any measure reasonably taken in removing or eliminating the
discharged or emitted substances.

Unless the fines and penalties established under Environmental Impact Statement

System Law, the Philippine Clean Air Act and the Philippine Clean Water Act are higher, the
fines set in this Act shall be imposed for floating craft, drilling rigs and fixed or floating
platforms, and vessels which primarily operate or undertake business, commercial or industrial

activities while anchored.

SEC. 19. Failure to Maintain Record Books. ~ (a) A ship which operates or is allowed to
operate without record books required under Section 12 of this Act or fails to maintain said
record books on board shall be liable to a fine of Two hundred thousand pesos (Php200,000.00).

(b) Any person who fails to comply with the provisions of Section 12 of this Act or the
rules and regulations promulgated therefor shall be liable to a fine of not less than Five thousand

pesos (Php5,000.00) but not more than Two hundred thousand pesos (Php200,000.00).

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(©) Any person who makes any false or misleading entry in said record books carried or
kept under Section 12 of this Act shall be liable to a fine of not less than Ten thousand pesos

(Php10,000.00) but not more than Five hundred thousand pesos (Php500,000.00).

SEC. 20. Refusal to Use Reception Facilities. ~ ship which unjustifiably refuses to
use reception facilities shall be liable to pay a fine of not less than Ten thousand pesos

(Php10,000.00) but not more than Five hundred thousand pesos (Php500,000.00).

SEC. 21. Absence of and Noncompliance with Shipboard Garbage Management. ~ If
a ship operates without a shipboard garbage management plan as required under the Convention
or fails to operate in accordance with such plan, it shall be liable to pay a fine of not less than
‘Ten thousand pesos (Php10,000.00) but not more than Two hundred thousand pesos
(Php200,000.00).

SEC. 22. Unauthorized Change in the Ship’s Structure, Equipment, Fittings,

— Unless authorized under this Act or the Convention, any ship

Arrangements and Materials
‘owner who made or caused any change in the structure, equipment, fittings, arrangements, and
materials of the ship without the approval of the MARINA shall be punished by a fine of not
less than Ten thousand pesos (Php10,000.00) but not more than One hundred thousand Pesos
(Php 100,000.00).

SEC. 23. Operating Without the Required Certification. — A ship which is operated or

is allowed to operate without the certification required pursuant to this Act or the Convention

shall be detained and shall be liable to a fine of not less than Ten thousand pesos

(Php10,000.00) but not more than Five hundred thousand pesos (Php500,000.00).

SEC. 24. Violation of Detention Order. — A ship which proceeds to sea in violation of a
detention order issued pursuant to Section 16 hereof shall be liable to the following fines:

(a) Philippine ship — not less than Ten thousand pesos (Php10,000.00) but not more than
One million pesos (Php1,000,000.00); and

(b) Foreign-flagged ship — not less than Five thousand US dollars (US$5,000.00) but not
more than Five million US dollars (US$5.000,000.00), or its equivalent in Philippine pesos.

SEC. 25. Continuing Violation. — a ship, which continuously discharges or emits
harmful substances in violation of Section 10 of this Act, shall be held liable for the fines
stipulated under Section 18. Likewise, it shall be made liable to pay an additional fine of not
less than Ten thousand pesos (Php10,000.00) but not more than Two hundred thousand pesos

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(Php200,000.00) for every day or part thereof during which the violation continues to be

committed.

SEC. 26. Obstruction of Investigation. — Any person who shall, without justifiable
reason, obstruct or hamper the conduct of an investigation of a violation of this Act shall be
liable to pay a fine of not less than Ten thousand pesos (Php10,000.00) but not more than One
hundred thousand pesos (Php 100,000.00).

SEC. 27. Neglect of Duty. — Any government official or employee charged with the
responsibility of enforcing any provision of this Act, who is found guilty of gross negligence of
duty, shall be dismissed from the service with prejudice to reinstatement. Neglect of duty shall
be prosecuted in accordance with existing laws.

SI

EC. 28. Connivance in Violation of this Act.— Any government official or employee
charged with the responsibility of enforcing and/or implementing any provision of this Act who
connives with the ship owner, master or operator of a ship or any person to violate, or permits
the commission of, any violation of this Act shall be dismissed from the service and shall be
jointly and severally liable with any such person found to be liable for the fine imposed

pursuant to this Act.

SEC. 29. Violations of Administrative Regulations. — Any person who commits or
omits acts in violation of rules and regulations issued by concerned agencies pursuant to this
Act, unless the violations are otherwise covered under Sections 19 to 28 hereof, shall be liable
to the following fines:

(a) First violation — a fine of not less than One thousand pesos (Php1,000.00) but not
more than One hundred thousand pesos (Php100,000.00);

(b) Second violation —a fine more than One hundred thousand pesos (Php100,000.00) but
not more than Two hundred thousand pesos (Php200,000.00); and

(©) Third violation ~ a fine more than Two hundred thousand pesos (Php200,000.00) but
not more than One million pesos (Php1,000,000.00) and the suspension of vessel safety
certificate for six (6) months to one (1) year.

‘The concerned agency shall promulgate rules and regulations for the summary
imposition of administrative sanctions, subject to due process, for failure to comply with any
order, decision, rules or regulations of the Department issued pursuant to this Act. All
administrative fines imposed by the concemed agency pursuant to this Act shall accrue to the
MEMF.

SEC. 30. Intentional Violation. — In case the discharge or emission of harmful
substances or toxic pollutants identified pursuant to Republic Act No. 6969, otherwise known as

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the “Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990”, is in toxic
amounts or is deliberate and willful, in violation of Section 10 of this Act, the offender, without
prejudice to the civil liability that may be imposed, shall be accordingly liable for a fine or
imprisonment of not less than six (6) years, but not more than twelve (12) years, or both, at the
discretion of the court:

(a) Philippine ship — not less than Fifty thousand pesos (Php50,000.00) but not more than
Twenty million pesos (Php20,000,000.00); and

(b) Foreign-flagged ship — not less than Fifty thousand US dollars (US$50,000.00) but not
more than Eight million US dollars (US$8,000,000.00), or its equivalent in Philippine Pesos.

SEC. 31. Automatic Adjustment of Penalties and Fines. — The fines prescribed in this
Act shall be automatically increased by ten percent (10%) every three (3) years from the

effectivity of this Act.

SEC. 32. Clean-up Operations. ~ In the event harmful substances under Section 10 of
this Act are discharged or emitted from any ship into Philippine waters or into any part of the
sea or waters outside Philippine waters but such substances subsequently flowed or drifted into
Philippine waters, or into the Philippine atmosphere, the PCG, in coordination with other
agencies concerned, shall be responsible for the cleanup and containment of discharged
substances, and the prevention or mitigation of the resulting damage to the environment, human

health, tourist and fishing industries, public and private properti

Provided, The necessary
initial cleanup and containment shall be made by the owner of the ship which discharged or

caused the discharge of such harmful substances.

SEC. 33. Cost Liability for the Discharge or Emission of Harmful Substances. ~The
owner of the ship liable for the discharge of harmful substances under Section 32 hereof shall be
primarily responsible to pay for the following pollution costs:

(a) Reasonable expenses that the PCG and other agencies concerned may reasonably

undertake or has undertaken pursuant to the immediately preceding section; and

(b) Environmental damages and/or other reasonable measures taken for environmental
rehabilitation.

In case the responsibility for the above pollution cost liability falls on two (2) or more
ships, and the liability of each of the owners thereof cannot be reasonably distinguished from
that of the other, each of the owners shall be jointly and severally liable for the whole amount of
the cost.

Republic Act No. 9483, otherwise known as the “Oil Pollution Compensation Act of
2007”, shall govern the civil liability for the discharge of oil, including the oily mixture,
discharged as part of the incident under the said Act.

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Reimbursement of the cost incurred shall be made to the MEMF or to such other funds

where disbursements were sourced.

SEC. 34. Informer’s Reward to Persons Instrumental in the Discovery of Violations of
this Act. ~ Any person with the exception of the officials or employees of the DOTC, the
DENR, the LGUs, the MARINA, the PCG or port authority or their relatives within the sixth
degree of consanguinity, who voluntarily gives definite and sworn information, not yet in the

possession of the MARINA or the PCG, leading to the discovery of the violation of this Act and

CoVvaneune

resulting in the imposition of fines or fees, or conviction of the guilty party of any of the fines or
10 penalties, shall be rewarded in a sum equivalent to ten percent (10%) of the fines or fees

11 recovered.

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13 CHAPTER VI

14 MARINE POLLUTION ADJUDICATION BOARD

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16 SEC. 35. Marine Pollution Adjudication Board. — There is hereby constituted a Marine

17 Pollution Adjudication Board (MPAB) vested with quasi-judicial powers under the DOTC
18 Secretary. The Board shall have sole and exclusive jurisdiction over all marine pollution cases

19 as provided for in Section 17 of this Act. It shall be composed of the following members:

20 (a) Secretary of the DOTC, or his duly authorized permanent representative, as
2 Chairperson:

2 (b) Secretary of the DENR, or his duly authorized permanent representative:

23 (c) Administrator of the MARINA, or his duly authorized permanent representative;

24 (4) Commandant of the PCG, or his duly authorized permanent representative;

25 (c) General Manager of the PPA, or his duly authorized permanent representative;

26 (8) A permanent representative endorsed by the Association of Masters and Mates;

27 (g) A permanent representative endorsed by the Marine Engineers Association;

28 (h) A member of the Philippine Bar duly endorsed by the Integrated Bar of the
29 Philippines (IBP); and,

30 (i) A member of the Sea Transport Association,

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32 ‘The grant of honoraria to members of the MPAB shall be subject to existing laws,

33 accounting and auditing rules and regulations.

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35 SEC. 36. Powers and Functions. - The MPAB shall have the following powers and
36 functions:

37 (a) To hear and decide cases falling under their jurisdiction pursuant to Section 17 of this
38 = Act;

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(b) To conduct hearings on all matters within its jurisdiction, proceed to hear and
determine the disputes in the absence of any party thereto who has been summoned or served
with notice to appear, conduct its proceedings or any part thereof in public or in private, adjourn
its hearings at any time and place, refer technical matters or accounts to an expert and to accept
the experts’ reports thereon as evidence after hearing of the parties upon due notice, direct
parties to be joined in or excluded from the proceedings, correct, amend or waive any error,
defect or irregularity, whether in substance or in form, give all such directions as it may deem
necessary or expedient in the determination of the dispute before it and dismiss the dispute as
part thereof, where it is trivial or where further proceedings by the Commission are not
necessary or desirable;

(©) To promulgate and adopt its own rules of procedure. It shall not be strictly bound by
the Rules of Court but shall proceed to hear and decide all cases, disputes or controversies in a
most expeditious manner, employing all reasonable means to ascertain the facts of every case in
accordance with justice and equity and the merits of the case:

(d) To summon witnesses, administer oaths, take testimony, require submission of reports,

compel the production of books and documents and answers to interrogatories and issue

subpoena ad testificandum and subpoena duces tecum and to enforce its writs through sheriffs
or other duly deputized officers;

(©) To punish direct and indirect contempt in the same manner and subject to the same
penalties as provided in the Rules of Court;

(£) To enjoin any or all acts involving or arising from any case pending before it which, if
not restrained forthwith, may cause grave or irreparable damage to any of the parties to the case
or seriously affect social or economic stability;

(g) To issue orders and decisions to compel compliance with the provisions of this Act

and the Convention and issuances or decisions of the MPAB;

(h) To deputize in writing or request assistance of appropriate government agencies or

instrumentalities for the purpose of enforcing its decisions; and

(@) To issue an ex parte order directing the discontinuance of discharge of substances that
cause marine pollution, or the temporary suspension or cessation of operation of the equipment,
project or activity and other acts causing environmental degradation, generating such pollutants
or wastes, without the necessity of a previous public hearing: Provided, That such ex parte
order shall be issued only in case of immediate threat to life or property, public health, safety or
welfare or to animal or plant life, or exceeds the allowable environmental standards. The ex
arte order shall be immediately executory and shall remain in force and effect until the same is

modified or lifted by the MPAB.

SEC. 37. Finality of Determination. — Any case or controversy before the MPAB shall
be decided by majority of all its members within thirty (30) days after it is submitted for

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resolution. Only one (1) motion for reconsideration shall be allowed. Unless an appeal is
perfected and a cash bond equivalent to the fine imposed is deposited, any order, decision or

ruling issued by the MPAB shall be final and executory.

SEC. 38. Appeals. — Any decision, order or judgment of the MPAB may be appealed to
the Court of Appeals by certiorari within fifteen (15) days from receipt of a copy thereof:

Provided, That cease and desist orders shall be immediately executory.

CHAPTER VII
MISCELLANEOUS PROVISIONS

SEC. 39. Ship Pollution Prevention Program. ~ The DOTC, in coordination with
concerned agencies and stakeholders, shall establish a Prevention of Ship Pollution Program to
enhance government implementation of this Act particularly on: (a) awareness building and
capacity building; (b) data banking; (c) development of reception facilities; (d) marine

environment protection; and (e) research.

SEC. 40. Implementing Rules and Regulations. — The Department and the concerned
agencies shall promulgate the implementing rules and regulations for this Act within one (1)
year afier the enactment of this Act. The proposed implementing rules and regulations shall be
subjected to public consultations with affected sectors. The DOTC shall ensure that functions
of the implementing agencies and rules and regulations promulgated prior to and after the
effectivity of this Act are devoid of any duplication or inconsistency.

The rules and regulations issued by other government agencies and instrumentalities for
the prevention of marine pollution not inconsistent with and appropriate to the implementation
of this Act shall supplement the rules and regulations issued by the Department pursuant to this
Act.

SEC. 41. Joint Congressional Oversight Committee (JCOC). — The Joint
Congressional Oversight Committee created under Section 33 of Republic Act No. 9275 or the
“Philippine Clean Water Act of 2004” shall also monitor the implementation of this Act and
review the implementing rules and regulations promulgated by the DOTC.

‘The JCOC shall exist for a period not exceeding five (5) years from the effectivity of
this Act and thereafter, its oversight functions shall be exercised by the Committee on
Environment of the Senate and the Committee on Ecology of the House of Representatives,

acting separately.

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The Secretariat of the Congressional Oversight Committee shall come from the
secretariat personnel of the Committees of the Senate and the House of Representatives

comprising the JCOC.

SEC. 42. Marine Environmental Management Fund (MEMF). ~ There is hereby
established a Marine Environmental Management Fund (MEMF) to be administered by the
MPAB. The Oil Pollution Management Fund (OPMF) created under Section 22 of Republic Act
No. 9483, otherwise known as the “Oil Pollution Compensation Act of 2007", is hereby
abolished. All balances, including the liabilities incurred by the OPMF, shall be transferred to
the MEMF. The MEME shall be sourced from the following:

(a) Within one (1) year following the effectivity of the Act, contributions of owners and
operators of tankers and barges hauling oil and for petroleum products in Philippine waterways
and coast wise shipping routes consisting of five centavos (Sc) per liter for every transshipment
of oil made by a tanker barge or tanker hauler based on the volume it loaded for the purpose of
transshipment regardless of its origin or destination; ‘Thereafter, reasonable amount of
contribution shall be jointly determined by MARINA, other concerned government agencies,
and representatives from the Owners of tankers barges, tankers haulers, and ship hauling oil
and/or petroleum products. In determining the amount of contribution, the purposes for which
the fund was set up shall always be considered;

(b) Fees, charges and fines imposed pursuant to this Act and Republic Act No. 9483;
(c) Donations, endowments, grants and contributions; and
(4) Amounts specifically appropriated for the MEMF under the annual General
Appropriations Act.
‘The MEME shall be utilized for the following activities:
(1) Containment, removal and clean-up operations of the PCG in all oil pollution
cases; and
(2) Enforcement and monitoring activities of the MARINA, the PCG and port
authorities of the Department and other relevant agencies: Provided, That ninety percent (90%)
of the funds shall be maintained annually for the containment, removal and clean-up operations
of the PCG in all cases of pollution from ships: Provided, further, That in no case shall the
MEMF be used to fund personal services expenditures except for the compensation of those

involved in clean-up operations.

SEC. 43. Appropriations. — The amount necessary to carry out the provisions of this Act
shall be charged against the current year’s appropriations of the concerned agencies. Thereafter,
such sums as may be necessary for the operation and maintenance of this Act shall be included
in the General Appropriations Act.

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1C. 44. Separability Clause. — In the event that any provision of this Act is declared

unconstitutional, the validity of the remainder shall not be affected thereby.

SEC. 45. Repealing Clause. — The fifth paragraph of Section 28 of the Philippine Clean
Water Act and Section 22 of the Oil Pollution are hereby repealed. The Toxic Substances and
Hazardous and Nuclear Wastes Control Act, the Marine Pollution Control Decree of 1974 and
1976 are hereby amended and modified accordingly. All laws, decrees, rules and regulations

and executive orders contrary to or inconsistent with this Act are hereby repealed or modified

accordingly.

SEC. 46. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,