Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No, 2746

Introduced by Representative Julius Cesar “Jay” V. Vergara

EXPLANATORY NOTE

While our country has been blessed with ample water sources, and bountiful
rainwater during the wet months, these remain vulnerable to wastage and are not
properly stored to serve us during the dry months. Moreover, it appears that the
country continues to be confronted with multi-faceted issues like the reportedly
dismal performance of water regulatory agencies, poor or no access to clean drinking
water in many parts of our country, rising water rates— all of which are aggravated
by climate change. Hence, it has become imperative that our government be made
ready and able to carry outa timely and effective response at all times.

Thus, this proposed measure, which is anchored and principally based on the
remarkable output of the Committees on Government Reorganization, Public Works
and Highways, Ways and Means, and Appropriations in the 18" Congress, seeks to
rationalize the country’s water, sewage, and sanitation resource management,
including water rights, through the creation of the Department of Water Resources
and the Water Regulatory Commission. Through the concerted efforts of these critical
agencies, it is envisioned that, among others, clearer and more organized policies for
water supply and sanitation are established and that the country’s water resources are
developed and managed to ensure its optimal use such as in irrigation, power
generation, industrial, agricultural and commercial use.

At this critical juncture in our country’s history where our people are still wary
of the pandemic and are truly burdened with the global crisis on oil and fuel, we
cannot succumb to a water crisis as well.

In view of the foregoing, approval of t

AQ
JULIUS CESAR “JAY” V. VERGARA
Third District of Nueva Ecija

earnestly requested.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 27 46

Introduced by Representative Julius Cesar “Jay” V. Vergara

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

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 “National Water Act”.

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

It is hereby declared the policy of the State to ensure the provision of safe,
adequate, affordable and sustainable water supply and improved sanitation services,
while maintaining the protection, preservation and revival of the quality of the
country’s water resources and ecological balance.

In pursuit of this policy, this Act shall have the principal objective of ensuring
and accelerating universal access to water supply and sanitation services, in a
regulatory regime that encourages responsible private sector participation, and shall
foster and prioritize the establishment of infrastructure and public works that adopt
innovative solutions and international best practices to address the challenges of
climate change. Further, all water and water treatment infrastructure projects are
hereby declared as projects imbued with national interest.

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


(a) Bulk water supplier refers to any entity, natural or juridical, whether public or
private, supplying or intending to supply large quantities of raw or treated
water to buyers who will use these for their own consumption, such as
industrial companies, or for retail distribution to consumers, such as water
service providers or real estate developers managing their own distribution
network.

(b) Environmental services refer to qualitative functions of natural non-produced
assets of land, water, and air, including related ecosystems, and their biota, and
which may be categorized into three basic types: (a) disposal services which
reflect the functions of the natural environment as an absorptive sink for
residuals; (b) productive services which reflect the economic functions of
providing natural resource inputs and space for production and consumption,
and (c) consumer or consumption services which provide for physiological as
well as recreational and related needs of human beings.

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

(d) Flood Risk Management (FRM) refers to such acts of defining and determining
the appropriate methods, acts and protocols aimed at preventing and reducing
the risk of incurring loss of both life and property due to flood waters. Flood
risk management consists of a cycle of prevention, mitigation, adaptation,
preparedness and early warning, and response and recovery. The elements of
FRM include: integrating land-use planning and coastal zone management into
water management; adopting a holistic approach so that FRM is part of wider
risk or multi-hazard management of earthquakes, landslides, storm surges;
managing risk and uncertainty as a whole so it not only mitigates hydrological
uncertainties but also social, economic and political uncertainties in view of the
human behavior and cultural dimensions of FRM.

(e) Gender Equality refers to the principle asserting the equality of men and women
and their right to enjoy equal conditions realizing their full human potentials
to contribute to and benefit from the results of development, and with the State
recognizing that all human beings are free and equal in dignity and rights.

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

(g) Integrated Water Resource Management (IWRM) refers to a systematic,
collaborative and multi-stakeholder process, which promotes the coordinated
development and management of water, land and related resources within


geophysical boundaries in order to maximize the resultant economic and social
welfare in an equitable manner and without compromising the sustainability
of vital ecosystems.

(h) Levels of water supply refer to communal sources of water described according
to location and size of the recipient human settlement as follows:

(1) Level I or the point source) is a protected well or a developed spring with
an outlet but without any distribution system, generally adaptable to rural
and upland areas where the houses are thinly scattered, and is a facility
which usually serves an average of 15 households.

(2) Level II or the communal faucet system or stand posts is a system composed
of a water source, a reservoir, a piped distribution network, and
communal faucets where one faucet serves 4 to 6 households and is
generally suitable for rural and urban fringe areas where houses are
clustered densely to justify a simple piped system.

(3) Level III or the waterworks system or individual house connections is a
system with a water source, a reservoir, a piped distribution network and
household taps, suitable for densely populated urban areas.

(i) License refers to the Water Supply and/or Sanitation Services Operating
License that the Water Regulatory Commission is authorized to grant and issue
to service providers.

(i) Licensee refers to the Service Provider to whom a license is granted or issued by
the Water Regulatory Commission.

(k) Missionary Water Services refer to water supply or services to areas that have no
existing safe water supply and services due to geographic limitation or absence
of economic and market viability.

() National Water Resources Management Plan (NWRMP) refers to a policy
document that contains a framework to guide the development and
management of all the water resources in the Philippines, the general strategies
and work to be pursued to ensure the sustainability of the resource towards
water security, and top-level direction on the utilization of existing water
resources in line with national development plans, policies, and programs in
accordance with the IWRM framework. The NWRMP shall also include a water
infrastructure development program or all waters of the country as well as
provide general guidance on how this shall be supported within an integrated
financing framework that can draw from public, private, and international
development funding sources.

(m) Net Waste Load refers to the difference of the initial waste load of the
abstracted water and the waste load of the final effluent discharge of an
industry.


(n) Regulatory Units refer to the offices established under Section 20 of this Act
which issue Licenses authorizing the operation of Water Supply and Sanitation
Services, and provide, review, determine, fix, and approve water and sewerage
tariffs, rates and charges that Licensees may impose

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

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

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

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

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

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

(u) Septage Management refers to the provision of proper collection, treatment and
disposal of septage.

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

(w)Service Provider refers to any entity, natural or juridical, whether private or
public, providing or intending to provide levels II & III water supply,
including bulk water suppliers, sewerage, septage treatment, and disposal
services for domestic, residential, industrial or commercial use.

(x) Sewage refers to water borne human or animal wastes, excluding oil or oil
waste, removed from residences, buildings, institutions, and industrial and
commercial establishments together with such groundwater, surface water and
storm waters as may be present including such waste from vessels, offshore
structures, other receptacles intended to receive or retain waste or other places
or the combination thereof.


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

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

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

(bb) Tariffs refer to such amounts which may be charged by licensees for their
water supply and sanitation services based on principles, standards and
guidelines established by the Department of Water Resources.

(cc) Water Demand Management (WDM) refers to any method whether technical,
economic, administrative, financial, or social that will accomplish one or more
of the following:

(1) Reduce the quantity or quality of water required to accomplish a specific
task;

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

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

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

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

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

(ce) Water pollution refers to any alteration of the physical, chemical, biological or
radiological properties of a body of water resulting in the impairment of its
purity or quality.

(£8) Water Resource refers to water under the ground or groundwater, water above
the ground such as surface water, run-offs, floods, stormwater and urban
drainage, and treated wastewater, water in the atmosphere or rain water, and
the waters of the sea within the territorial jurisdiction of the Philippines


(gg) Water Resources Regions refer to the contiguous clusters of river basins which
are grouped together according to the hydrological boundaries, physiographic
features and homogeneity in climate, whether or not they straddle different
local government units, for administrative purposes under the Department of
Water Resources.

(hh) Water Service Provider (WSP) refers to the water district, any Local
Government Unit (LGU)-run water utility, Barangay Waterworks and
Sanitation Association (BWSA), Rural Waterworks Sanitation Association
(RWSA), cooperative and private sector entity that provides water supply
services to any given area.

(ii) Water supply service refers to any activity comprising Levels I, Il and III water
supply including bulk suppliers, suppliers to subdivisions and other water
service providers.

CHAPTER II
THE DEPARTMENT OF WATER RESOURCES

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

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

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

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

The Department shall exercise the powers and functions of the defunct Pasig
River Rehabilitation Commission created under Executive Order No. 54, series of 1999
and abolished under Executive Order No. 98, series of 2019, specifically the following
roles that were transferred to the Manila Bay Task Force and DENR through the latter
EO:


eIAUuREN=

(a) Update and take the lead in the overall implementation of the Pasig River
Rehabilitation Master Plan, which shall harness the Pasig River's potential
for transportation, recreation and tourism purposes while undertaking the
rehabilitation and restoration of its maritime life; and

(b) Ensure that the easements provided for in the Civil Code and other relevant
laws are enforced, especially in all the esteros and waterways that drain into
the Pasig River as well as abate the dumping of untreated industrial
wastewater and sewerage into the river, including all acts an omissions in
violation of Presidential Decree (PD) No. 984, 5.1976, as amended entitled,
Providing For The Revision Of Republic Act No. 3931, Commonly Known As The
Pollution Control Law, And For Other Purposes, PI) No. 274, s. 1973 entitled,
Pertaining To The Preservation, Beautification, Improvement And Gainful
Utilization Of The Pasig River, Providing For The Regulation And Control Of
Pollution Of The River And Its Banks In Order To Enhance Its Development,
Thereby Maximizing Its Utilization For Socio-Economic Purposes, and other
related laws.

SEC. 6. Guiding Principles. -In the pursuit of its mandate, the Department shall

be guided by the following key principles:

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

(b) Access to safe water supply and improved sanitation is a human right that
needs to be fulfilled and protected.

(c) IWRM shall be adopted as the basic framework which is the coordinated
development and management of water, land and related resources within
hydrological boundaries, to optimize economic and social welfare, without
compromising the sustainability of vital ecosystems. The IWRM Framework
shall include an enabling environment that utilizes proper policies, legal
instruments, and institutional frameworks for effective implementation,
participatory and collaborative water policy and management decisions, and
management instruments for efficient use of updated and accurate data,
science-based decision support systems, proper information, education,
communication (IEC) programs, assessment and allocations tools, or
regulatory functions. It shall observe the mutual accountability mechanism
among stakeholder at the national, regional, and global levels reinforcing


multistakeholder decision-making following a framework with specific,
measurable, attainable, relevant, and timely actions.

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

(c) Integrated and accurate data collection and analysis and the use of scientific
decision support systems shall be undertaken in water resources management
including flood modeling and warning systems that are essential for an
effective, efficient and sustainable water resources management system.

(f) The development of water resources shall include strategies for the mitigation
of water-related hazards and climate change adaptation.

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

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

SEC 7. Objectives of the Department. - The Department shall:

(a) Promote and adopt water demand management as a national policy to ensure
that water is optimized, that water efficiency and conservation become a way
of life, that the recycling and reuse of water and treated wastewater are widely
practiced, that water is properly priced to encourage efficient use and
conservation and that rainwater, flood waters, and run-offs are captured or
harvested, stored and treated for future use;

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

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


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

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

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

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

(h) Develop a standardized pricing framework for water use that accounts for
environmental externalities; and

(i) Ensure that all sources of water, including surface water, groundwater,
rainwater and floodwater, are identified, mapped, monitored, conserved and
managed for productive use and the resulting wastewater is managed properly
and reused and responsibly disposed of following, approved environmental
standards.

SEC. 8. Powers and Functions of the Department. - The Department shall have the
following powers and functions:

I. Policymaking and Planning,

(a) Ensure that Integrated Water Resources Management (IWRM) is adopted as
the strategic framework for water management policymaking and planning in
the country and coordinate the implementation, promotion, revision and
enhancement of IWRM plans;

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


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

(a) Regularly update, every five (5) years or as deemed necessary by the
Department, and in consultation with other agencies and stakeholders, the
NWRMP following the IWRM framework, including the review and integrate
therein a national land use plan;

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

(8) Conduct continuing hydrologic and hydrometeorological surveys and studies
of the country’s renewable water supply, and establish, operate and maintain
observation station networks with a view towards formulating long-term
policies to balance the sustainability and optimal multiple use of water
resources, defining the hydrologic boundaries of basins of the existing water
supply sources and developing or updating and implementing countrywide
comprehensive basin-wide master plans;

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

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

(

Review, approve and provide oversight over all water-related development
plans and programs of any agency within the context of the NWRMP, and
overall national plans and program;

0

Develop and implement, in coordination with other relevant agencies, effective
codes, standards, benchmarks, and reasonable guidelines to ensure the safety
of all public, and private water structures in the country, and assure efficiency
and proper quality in the construction of water, sanitation, irrigation,
hydropower, flood control and drainage infrastructure;

(k) Ensure that gender equality, social inclusion, environmental protection, climate
resiliency and disaster risk reduction are integrated into any water resources


management planning, policy making, and the design and construction of
water infrastructure;

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

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

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

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

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

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

Il. Resource Regulation

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

(b) Regulate and control the utilization, abstraction, diversion and development of
water resources, taking in consideration its equitable distribution among
competing demands and determine the standards of beneficial and priority
uses of water in times of crisis and national emergencies;


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

(d) Regularly review regulations prescribed by any government agency pertaining
to water use, exploitation, development, conservation or protection of waters,
water resources, and watershed or basin areas with respect to this Act;

(e) Impose fees or charges, as may be deemed necessary for water resources
conservation and protection, such as:
i. Polluter’s Fee, which shall be based on the net waste load depending on
the wastewater charge formula pursuant to Republic Act No. 9275;
ii, Raw water price, which shall take into account, among others, the
scarcity of water; and
iii. Appropriate payment structures for environmental services:

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

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

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

(i) Maintain a database that will contain updated relevant information on water

data which will be accessible by relevant and authorized users;

@

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

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


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

Ill. Institutional Arrangement with Public Water Organizations

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

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

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

(d) Provide technical assistance to water users including farmers, communities,
and LGUs and other water service providers (WSP) whether directly or in
coordination with other agencies on all aspects of integrated water resources
management;

(©) Respond to consumer complaints, and ensure the adequate promotion of
consumer interests;

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

(g) Appoint, hire and maintain adequate staff and personnel, advisers or
consultants with suitable qualifications and experience, as necessary, subject to
existing rules and regulations.

IV. Coordination

(a) Coordinate and integrate water resources development activities of the country
within the context of national plans and policies for social and economic
development;

(b) Coordinate with other government agencies, universities and_ private
professional groups for all aspects of data gathering, the conduct of special
studies and research on all related aspects of water resources management and
development such as climate change, environmental quality, desalination, and


the development of operating strategies, procedures, and protocols and
accompanying computerized decision tools for major water facilities;

(©) Coordinate with the concerned and relevant agencies engaged in flood control,
flood risk management and drought risk management; and

(d) Coordinate proactively with LGUs to ensure the integration of water resources
development plans into their comprehensive land use plans (CLUPS),
Comprehensive Development Plans (CDPs) or Provincial Physical Framework
and Development Plan (PPEDP).

‘V. Other Functions

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

(b) Enter into contracts, joint venture agreements or understanding, public-private
partnerships, and memoranda of agreement or understanding, either domestic
or foreign, relating to investment and financing water-related projects, under
such terms and conditions as the Department may deem proper and reasonable
subject to existing laws;

(©) Exercise such other powers and functions necessary or incidental to the
effective administration and management of the country’s water resources.

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

(a) Advise the President on the promulgation of executive or administrative
orders, regulations, proclamations and other issuances relative to matters

under the jurisdiction of the Department;

(b) Establish the policies and standards for the operation of the Department
P pe P:
pursuant to the President's guidelines;

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

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

(e) Supervise all attached agencies and corporations in accordance with law;


25

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

(g) Delegate authority for the performance of any power or function, as defined
herein to officials and employees under his direction as deemed appropriate;

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

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

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

SEC. 10. Office of the Secretary. - The Office of the Secretary shall be composed
of the Secretary, Undersecretary, Assistant Secretary and the immediate staff of the
Secretary.

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

The Secretary is hereby authorized to delineate and assign the respective
functional areas of responsibility of the Undersecretaries in accordance with the
mandate and objectives of the Department: Provided, That no undersecretary shall be
assigned primarily to administrative responsibilities. Within his functional areas of
responsibility, the Undersecretary shall:

(a) Advise and assist the Secret in the formulation and implementation of the
ary 1
policies, plans, programs and projects of the Department;

(b) Supervise all the operational activities of the assigned units for which the
Undersecretary is responsible to the Secretary; and

()Perform such other functions deemed necessary as may be assigned or
delegated by the Secretary to promote efficiency and effectiveness in the
delivery of public services or as may be required by law: Provided, That the
Undersecretary for Planning and Policy shall be primarily responsible, in
coordination with the Planning and Policy Service, for advancing current
efforts in attaining the ultimate goal of universal access to water supply and


sanitation systems, and sustainable management of water resources under the
SDGs, and the integration of water, energy, environment and food security.

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

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

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

(a) Department Proper. - The Department shall consist of the Office of the Secretary,
the Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit
Office, the Public Affairs Office, the Water Pollution Adjudication Board, the
Planning and Policy Service, Decision Support System Service, Administrative
and Human Resources Service, Legal and Legislative Service, Comptrollership
and Financial Management Service, Resource Regulation Service, and the
Water Resources Regional Offices.

(b) Attached Agencies. - The Department shall exercise administrative supervision
over the following agencies for purposes of policy and program coordination,
monitoring, and evaluation:

1) The Local Water Utilities Administration (LWUA), whose mandate, powers
and functions are defined in Presidential Decree No. 198, as amended
otherwise known as the Public Water Utilities Act of 1973, shall be transferred
from the Department of Public Works and Highways (DPWH) and attached
to the Department. It shall continue to be primarily function as a specialized
lending institution for the promotion, development and financing of local
water utilities. In the implementation of its functions, the LWUA shall:

i. prescribe minimum standards and regulations in order to assure
acceptable standards of construction materials and supplies,
maintenance, operation, personnel training, accounting and fiscal
practices for local water utilities;

ii, furnish technical assistance and personnel training programs for local
water utilities;

iii, monitor and evaluate local water standards; and


iv. effect system integration, joint investment and operation, district
annexation and de-annexation whenever economically warranted as
amended by Sec. 22, Presidential Decree No. 768.

2) The Metropolitan Waterworks and Sewerage System (MWSS), whose
mandate, powers and functions are defined by Republic Act No. 6234, as
amended entitled, An Act Creating The Metropolitan Waterworks And Sewerage
System And Dissolving The National Waterworks And Sewerage Authority; And
For Other Purposes, shall be transferred from the DPWH and attached to the
Department: Provided, That the MWSS shall continue to facilitate the
exercise by the concessionaires of their responsibility; carry out accounting
and notification functions, monitor, report, and administer loans; perform
related functions in connections with existing projects; manage and dispose
its retained assets; and manage and operate the Umiray-Angat Transbasin
Project.

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

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

The LLDA shall continue to serve as the lake management and development
authority similar to a multi-stakeholder river basin organization and shall
ensure the implementation of the Laguna Lake Master Plan which shall be
updated by the Department to ensure alignment with the NWRMP.

Any other agency exercising water resources management, conservation and
protection functions may be transferred to the Department as the President
deems necessary.

(©) Offices, Functions and Personnel to be Completely Subsumed by the Department. -

The following offices with their powers, functions, personnel, applicable funds
and appropriations, records, equipment and property shall be subsumed by the
Department:

(1) The National Water Resources Board (NWRB) with all its divisions and
sections, whose mandate, powers and functions are found in Presidential
Decree No. 424, as amended;


(2) The River Basin Control Office (RBCO) of the DENR whose mandate,
powers and functions are provided in Executive Order No. 510 and
Executive Order No. 816, as amended;

(3) The Manila Bay Coordinating Office (MBCO) of the DENR which was
strengthened by virtue of DENR Administrative Order (DAO) 2011-01 to
coordinate the efforts of the fourteen (14) national agencies covered by the
Mandamus Order of the Supreme Court to rehabilitate Manila Bay;

(4) The Water Resources Management Division of the Bureau of Solid and
Water Management of the Department of Agriculture (DA);

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

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

(d) Functions to be Transferred to the Department. ~ The following functions of the
respective agencies, bureaus, and units shall be transferred to the Department:

(1) The hydrological surveys and groundwater mapping function of the Mines
and Geosciences Bureau (MGB) of the DENR;

(2) The hydrological surveys monitoring of stream flow and other water data
collection function of the Bureau of Design and Bureau of Research and
Standards of the DPWH;

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

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

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

(6) The Water Resource Management Division and the water research
functions of the Soils and Water Research Division of the Bureau of Soils
and Water Management under the DA. All soil-related functions shall be
retained under the Bureau which shall be renamed as the Bureau of Soils.

(c) Support Services - The Department shall create the following support services:

(1) The Planning and Policy Service shall provide the Department with the
capability to undertake water infrastructure development planning and
programming, and shall exercise the following functions:

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

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


(iii)

(iv)

(vi)

(vii)

(xiv)

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

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

Coordinate river-basin planning following the integrated water
resources management framework and the river-basin approach;
Formulate or update existing River Basin Master or Comprehensive
Plans which includes all aspects of water management and
development such as water supply and sanitation, irrigation, flood
control and stormwater or urban drainage, drought risk
management, water resource development systems and other public
water works projects, including phasing of implementation;
Identify, based on the river basin master plan, priority packages for
water infrastructure development per river basin, including water
supply, sanitation, irrigation, flood control and stormwater or urban
drainage, drought risk management, water resource development
systems and other public works projects; package project proposals
for funding and prioritize project implementation and the allocation
of funds and other resources and undertake or supervise and
evaluate the conduct of feasibility studies and project preparation
thereof;

Evaluate and appraise all regional and inter-regional infrastructure
water development plans and programs as to their feasibility and
consistency with approved strategies and medium and long-term

plans;
Gather, analyze and organize needed statistical data and
information;

Provide technical assistance related to its functions to the other
services, bureaus and the regional offices as needed;

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

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

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

Coordinate closely with PAGASA for rainfall and other climate data
which shall be considered in the planning for water resources
development and management and for various water infrastructure;
and


(xv) Perform such other functions and activities, as may be mandated by
law, which are necessary for the effective attainment of the
abovementioned objectives.

(2) The Decision Support System Service shall provide the Department with water
resource management tools and computerized decision support system that
incorporates data management system relating to acquisition and database
and model base in terms of physical, design, planning and decision models
including services related to networking, data management and
information and knowledge or learning management systems for
administrative and non-technical support. It shall provide the Secretary
timely reports on the status of various Department projects and activities.
For this purpose, it shall have the following functions:

(i) Provide the Secretary needed data and processed information to aid
in policy and management decisions under the mandate of the
Department;

(ii) Publish available real-time raw water data as well as verified or
validated water data-in print or electronic form using latest internet
technology;

(iii) Conduct and publish in print and/or electronic form, standard
data analysis such as basic statistical analysis, trend analysis,
analysis of runs, and cluster analysis;

(iv) Develop and continuously update water resource management,
computerized decision support system (DSS) that incorporates data
management system relating to acquisition and database, model
base in terms of physical, design, planning, and decision models, and
user-friendly interface such as graphical and visualization tools. The
DSS is composed of: 1) a measurement or data acquisition system; 2)
information or database management system; 3) analytical and
numerical models for design, planning, decision or evaluation
purposes; and 4) a user-friendly interface which includes graphical
interface or visualization tools.

(v) Develop and maintain specific models to include the following:

a) long-term climatologic and weather forecasting model;

b) watershed models and river-flood plain models;

©) groundwater models and coupled to surface water models;

d) flood forecasting model for major rivers;

e) optimization-simulation management models for watershed
conservation, conjunctive surface and groundwater use,
irrigation scheduling, normal and emergency operations of
multipurpose reservoirs; and

f) water quality and ecological models.

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

20


e, process, and monitor information on all projects and

activities in the web portal;

b) Conduct and apply systems and process engineering, software
development, software configuration management;

©) Develop and manage its corporate database, unified database for

water industry, data warehouse, other water information

resources, library services and document management and

archiving services;

Develop and manage its Information and Communications

Technology (ICT) infrastructure and ICT related service

including computer networking and voice communications

services and data exchange;

Manage the literacy and training services of the Department on

various ICT, and Knowledge Management (KM) tools and

applications, including information and — knowledge

management.

(vii) Perform such other related functions and activities which are
necessary for the effective administration of the management
information and knowledge systems of the Department.

d)

e)

(8) The Administrative and Human Resource Service shall provide the Department

with services relating to human resources development, personnel, records,
facilities maintenance, medical and dental, security, and property and
procurement services, and shall exercise the following functions:

(i) Advise the Secretary on all matters relating to internal
administration and human resources management;

(ii) Prepare and implement an integrated personnel development plan
that shall include provisions for merit promotions, performance
evaluation, job rotation, suggestions and incentive awards systems,
and health and welfare services;

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

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

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

(vi) _ Coordinate with the appropriate government agencies for a more
efficient conduct of administrative processes;

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

21


(viii) Provide assistance in its area of specialization to the Department
Proper, bureaus and regional and water district offices and, when
requested, to the government agencies and corporations attached to
the Department; and

(ix)Perform such other functions and activities which are necessary for
the effective management of resources of the Department, including
its human resources.

(4) The Legal and Legislative Service shall provide the Department with services
on such legal affairs as contract letting and litigation, legal and legislative
research, complaints and investigation, legal counselling and other matters
of law, and shall exercise the following functions:

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

(ii) Prepare Department contracts and legal instruments, review and
interpret all contracts and agreements entered into by the
Department and evaluate all legal proposals;

(iii) Conduct administrative investigation and the review of
administrative charges against officers and employees of the
Department;

(iv) Exercise functional jurisdiction over the legal staffs of Regional
Offices;

(v) Provide legal assistance to the Department Proper, the bureaus and
regional offices and, when requested, the attached corporations;

(vi) Develop and prepare the Department's Legislative Agenda,
recommend presidential certification of the urgency of priority water
bills, and other water-related legislations;

(vii) Coordinate and maintain linkages among the various offices,
bureaus, regional offices and attached agencies to the Department
along with other government agencies on policy matters affecting the
Department's mandate in relation to legislation;

(viii) Perform liaison and networking activities in relation to the
enactment of related laws relating to water resources issues in
legislative policymaking bodies such as the Senate of the Philippines,
the House of Representatives, and the various Sanggunians;

(ix)Monitor the progress of the Department's priority or certified bills to
ensure their passage; and

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

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

22


(i) Advise the Secretary on all matters relating to the accounting of
government expenditures and receipts, budgeting and cash
management, project finances and financial systems and procedures;

(ii) Prepare budget proposals and pursue formal budget authorizations,

undertake budget execution, and prepare and submit all appropriate

reports to the proper offices;

Develop and maintain accounting, financial and assets
management systems, procedures and practices in the Department
Proper, bureaus and regional offices;

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

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

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

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

(i) Advise the Secretary on all matters relating to resource regulations;

(ii) Determine, grant and regulate water rights for the appropriate,
optimal and sustainable use of surface and ground water;

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

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

(v) Adjudicate water use conflicts; and

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

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

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

(ii) Conduct a performance audit of the management and operations of
the Department, its activities, the performance of all units, and
determine the degree of compliance of all operating units with

23


established objectives, policies, standards, methods and procedures,
government regulations and contractual obligations of the
Department;

(iii) Review and appraise systems and procedures, organizational

structure, assets management practices, accounting and other
records, and performance standards such as budgets and standard
costs of the Department Proper, bureaus and regional offices;

(iv) Analyze and evaluate management deficiencies and recommend

realistic courses of action; and

(v) Perform such functions and activities, as may be mandated by law,

which are necessary for the effective performance of the
abovementioned objectives,

(8) The Public Affairs Service shall enhance relations with all stakeholders
including the media, for the effective dissemination of information relating
to water-related issues, including important announcements on policies
and activities of the department that is of interest to the general public. It
shall ensure that women, men, elderly, and people with disabilities shall be

consulted, organized and can take active pa

in all aspects of water

resources development and management activities. It shall also lead the
planning and organizing of the special events, and shall exercise the
following functions:

@

Public Awareness

a) Advise the Secretary on matters pertaining to public affairs;

b) Develop and supervise the implementation of comprehensible

communications programs on relevant policies, programs and

plans of the Department;

Produce and supervise the dissemination of communication

materials in line with the priorities of the Department and the

national government public information programs;

Conduct public opinion and attitude surveys to identify the

interests and concerns of the stakeholders of the Department;

Establish policies on the presentation and publication of the

content of the communication materials for dissemination to

print and broadcast media;

f) Establish and maintain linkages with the tri-media and presence
in social media;

g) Coordinate the conduct of interviews and news conferences;

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

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

¢)

d)

2

24


j) Coordinate with the appropriate national government agencies
involved in public information affairs.

(i) Promoting Participation

a) Conduct public consultations and discussions;

b) Develop and disseminate relevant and appropriate materials and
programs for public information and education, as well as
advocacy campaign;

©) Conduct seminars and workshops involving the LGUs and the
general public on current water issues and problems; and

d) Conduct capability building seminars of various stakeholders to
promote meaningful participation in the Department's policy
making, planning, development and implementation of various
programs and projects.

(iii) Special Events
a) Coordinate the organization and promotion of special events and
water exhibits;
b) Actas the focal office for all water related events; and
©) Perform such other functions and activities, as may be mandated
by law, which are necessary for the effective performance of the
abovementioned objectives.

() Bureaus. - The Department shall create bureaus, which shall each be headed by
a Bureau Director. The Bureau Director shall be responsible for the efficient and
effective discharge of the functions of the Bureau concerned. The Bureau
Director shall be assisted by one (1) Assistant Director.

(1) The Bureau of Flood Control and Drainage shall plan and design flood control
and drainage structures and facilities in accordance with technical
standards, guidelines and manuals. For this purpose, it shall have the
following duties and responsibilities:

(i) Formulate policy, strategies and programs of flood risk management in
the context of integrated flood management (IFM) which integrates
water, land, coastal zone and multi-hazard management. In integrating
land-use planning and water management, the Department shall
harmonize and synthesize plans to enable the sharing of information
between land-use planning and water management authorities. In this
regard, a holistic approach shall be adopted by making the IFM a part of
a wider risk or multi-hazard management system that includes
earthquakes, landslides, fires, tsunami, and other calamities of the same
gravity or nature;

25


(ii) Integrate climate change and disaster risk reduction and management in
policies and plans;

(iii) Prepare master plans of flood management and drainage in river
basins in coordination with the concerned water resources region and
river basin organizations;

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

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

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

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

(viii) Patrol and investigate rivers and monitor stream flows;

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

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

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

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

(xiii) Advise the Secretary on declaring flood control areas and
recommend guidelines for flood plain management plans in these areas;
and

(xiv) Perform such related activities for the effective performance of its
functions.

(2) The Bureau of Water Quality Management shall supervise and control over all

aspects of water quality management to ensure the sustainability of the
country’s water resources and the protection of the environment. It should
take into account proper and integrated treatment of freshwater and
wastewater within the whole process. For this purpose, the Bureau shall
exercise the following functions:

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

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

(iii) Establish internationally accepted procedures for sampling
analysis;

26


(iv) Prepare an integrated water quality management framework;

(v) Prepare the 10-year water quality management plans for each water
quality management area as part of the River Basin Master Plans in
support of the NWRMP;

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

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

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

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

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

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

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

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

(xiv) Serve as secretariat of the WPAB; and

(xv) Perform such functions and activities, as may be mandated by

law, which are necessary for the effective performance of the
abovementioned objectives.

(3) A Water Resources Regional Office (WRRO) shall be organized per water

resources region and shal] be responsible for implementing the mandates,

powers and duties of the Department at the field level, except for

policymaking which will be vested solely in the Department. The
formulation of the master plan for the nearby river basins such as the Pasig-

Marikina-Laguna Lake-Cavite, shall be the responsibility of the

Department. For this purpose, the duties and responsibilities of the WRRO

shall be as follows:

(i) Formulate or update and coordinate the river basin master plan for river
basins within its jurisdictions ensuring consistency with the NWRMP;

(ii) Advocate and strongly support the creation and functioning of multi-
stakeholder River Basin Organizations (RBOs) and serve as the
secretariat of the said RBOs;

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

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

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

27


(vi) Coordinate with other departments, agencies, institutions and
organizations, especially local government units within the region in the
planning and implementation of the river basin master plans;

(vii) Conduct consultations with the jocal communities, take
appropriate measures to ensure that the services of the Department are
responsive, and recommend such appropriate actions as may be
necessary; and

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

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

Each WRRO shall be headed by a Water Resources Regional Director
who shall be responsible for efficiently and effectively carrying out the duties
and responsibilities of the Office. Towards this end, the Water Resources
Regional Director shall exercise functional and administrative supervision over
all units within the region and is authorized to commit resources and assign
personnel to integrated regional water resources management, water supply
and sanitation management, and flood control and flood risk management
initiatives. The Water Resources Regional Director shall also perform such
other related duties and responsibilities as may be assigned or delegated by the
Secretary or as may be required by law.

The Water Resources Regional Director shall be assisted by two (2)
Assistant Water Resources Regional Office Directors who shall exercise
supervision over (1) the planning, project design and evaluation function and
(2) technical assistance to the River Basin Organizations within the water
resources region.

SEC. 14. Water Pollution Adjudication Board. - There is hereby created a Water
Pollution Adjudication Board under the Office of the Secretary. The Board shall be
composed of the Secretary as Chairperson, two (2) Undersecretaries as may be
designated by the Secretary, the Director of the Water Quality Management Bureau
and three (3) representatives from other stakeholders to be designated by the Secretary
as members.

The Board shall assume the powers and functions of the National Pollution
Control Commission with respect to the adjudication of water pollution cases under
Republic Act No. 3931 entitled, An Act Creating The National Water And Air Pollution
Control Commission, Presidential Decree 984 entitled Providing For The Revision Of
Republic Act No. 3931, Commonly Known as the Pollution Control Law, And For Other
Purposes, particularly with respect to Section 6 (e), (f), (g), (j), and (k) and RA 9275. The

28


Bureau of Water Quality Management shall serve as the Secretariat of the Board. These
powers and functions may be delegated to the field officers of the Department in
accordance with rules and regulations to be promulgated by the Board.

CHAPTER III
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT

SEC. 15. Interface and Institutional Arrangements with Other Agencies. ~

(a) The Department of Health (DOH) shall continue to have primary authority and
responsibility for setting and enforcing drinking water quality standards. The
Department shall coordinate with the DOH in this regard and shall ensure
consistency of standards and targets, as well as the compliance of permittees
with mandated standards;

(b) The Department of Environment and Natural Resources (DENR) shall continue
to have primary authority and responsibility for protecting the environment
and managing the country’s watersheds;

(c) The Department of Energy (DOE) and the National Power Corporation (NPC)
shall continue to have primary authority and responsibility for establishing
hydropower plants, but shall ensure that any hydropower plant development
plans are consistent with the NWRMP;

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

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

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

(g) The Department shall coordinate with the Department of Tourism (DOT) on
recreational use of water resources;

(h) The Department shall coordinate with the Philippine Reclamation Authority
and economic zone authorities on water resources development and water
requirements within reclamation areas and economic zones, respectively; and

(i) The Department shall coordinate with relevant government agencies,
including Local Government Units (LGUs), with respect to development
projects and shall ensure cross-cutting collaboration between and among all
water subsectors and facilitate inter-agency subsector coordination, strategic
development, planning, monitoring and provision of technical, institutional

29


and financial capacity building support to their different stakeholders at the
water subsector level.

SEC. 16. National Water Sector Policy Board. - The National Water Sector Policy
Board shall be created and shall be headed by the Secretary of the Department of
Water Resources with the Secretary of the NEDA as the Vice Chairperson, and the
Secretaries of the DOH, DILG, DOE, DA, DSWD, DPWH, DENR, Department of
Budget and Management (DBM); the Office of the President; and the National
Commission on Indigenous Peoples as members. The Department shall provide
personnel to serve as Secretariat to the Board.

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

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

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

(c) Advise the President on the status of water management and supply,
recommend to the President the declaration of a state calamity in areas affected
by water supply, and submit proposals to restore normalcy in the affected
areas;

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

SEC. 18. Transfer of Rights and Obligations. - The Department shall, by virtue of
this Act, be subrogated to all the rights and assume all the obligations of the
government agencies and units whose powers and functions have been subsumed,
absorbed, transferred or attached to the Department in accordance with the rules and
regulations of the Commission on Audit, the Civil Service Commission, and other
applicable laws. The transfer of powers and functions as herein provided shall take
effect within six (6) months of the effectivity of this Act. As such, all affected agencies,
offices, and units shall continue to function under their present mandates.

CHAPTER IV
WATER REGULATORY COMMISSION

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

The Commission shall be placed under the administrative supervision of the
Department.

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

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

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

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

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

The Commission shall exercise the following powers and functions:

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

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

c) Appoint the central and regional regulators;

d) Establish rules and regulations to monitor, avoid and provide remedies for any
market power abuse or anti-competitive or discriminatory act or behavior by
or against any participant in the water supply and sanitation sector. Upon
finding that a market participant has engaged in, or fell victim to such act or
behavior, the Commission shall act to stop or redress the same. Such remedies
may, without limitation, include the imposition of price controls, issuance of
injunctions, requirement of divestment or disgorgement of excess profits,
invalidation of contracts and imposition of fines and penalties pursuant to this
Act.

e) Adopt and require that books, records and accounts be kept and maintained in
accordance with the prescribed uniform accounting system;

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

g) Impose and collect annual levies determined as a percentage of gross revenue
accruing in relation to the licensed activities, and reasonable fees and

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surcharges as may be necessary for achieving the purposes, powers and
functions of the Commission;

h) Require the submission reports of finances and operations, verified under oaths
by the owner or president and secretary of the Licensee;

i) Determine and require the monitoring and submission of such data, statistics
and other information from the regulatory units and any or all licensees as may
be necessary for the effective and efficient exercise of its duties, functions,
powers and responsibilities.

j) Investigate, motu proprio or upon a written complaint, any matter concerning
the operation of the service and issues on price manipulation and anti-
competitive behavior;

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

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

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

n) Deputize agents, whether from the public or private sector, to assist in the
performance of any of the powers and functions of the Commission;

) Appoint an interim or temporary management committee upon appeal and
after due hearing, to ensure continuity of service in cases a licensee fails to meet
conditions of the license and the concerned Regulatory Unit fails or refuses to
appoint an interim management committee as provided in the following
section;

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

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

1) Such other incidental powers and functions as may be necessary to attain the
objectives of this Act.

SEC. 22. Powers and Functions of the Regulatory Units. - The regulatory units of
the Commission shall have the following powers and functions:

a) Issue licenses authorizing the operation of water supply and sanitation services
in any specified area or areas within the Philippines.

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

©) Review, determine, fix, and approve, consistent with the rules, guidelines,

32


procedures and methodologies which the Commission shall provide, proposed
water and sewerage and septage management tariffs, rates and charges that
licensees may impose upon their consumers;

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

e) Enforce technical, financial and other performance standards set by the
Commission for licensees or utilities;

f) Respond to consumer complaints and ensure the adequate promotion of
consumer interests and investigate motu proprio price manipulation and anti-
competitive behavior;

g) Investigate accidents directly or indirectly arising from or connected with the
maintenance or operation of the service, and make such order or
recommendation as the public interest may warrant

h) Require the review and/or approval of contracts or agreements that may
impact on the tariff and rates of service provision entered into by service
providers upon petition or motu proprio where in its determination public
interest so dictates;

i) Require the submission of reports, plans and other documents that define the
performance targets of the licensees or utilities, and regular accomplishment
reports;

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

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

1) Amend, modify, suspend or revoke any License issued by them, after due
notice and hearing, on any of the following grounds:

i. when the facts and circumstances on the strength of which the license was
issued have been materially misrepresented or have materially changed;
ii. where the licensee has failed to meet or comply with terms, conditions
and performance targets, including but not limited to service expansion
that may have been set in the license;
where the licensee is found to be manifestly inefficient in the operation of
or provision of water supply and sanitation services in its area; or
iv. when the licensee thereof has violated or willfully refused to comply with
any order, rule or regulation of the Commission or any provision of this
Act;

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

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

SEC. 23. Composition of the Water Regulatory Commission. -
a) The Commission shall be a collegial body composed of five (5) full-time
members consisting, of a Chairperson and four (4) members, who shall all be

33


appointed by the President of the Philippines. All members of the
Commission must be citizens and residents of the Philippines, at least thirty
five (35) years of age, and of good moral character, of recognized integrity
and competence in the field of law, business, commerce, finance, accounting
or public administration, water or utility economics, management, physical
or engineering services, hydrology and other related services, with at least
three (3) years of actual and distinguished experience in their respective fields
of expertise: Provided, That out of the four members of the Commission, at
least one (1) shall be a member of the Philippine Bar with at least ten (10)
years of experience in the active practice of law, and at least one (1) shall be
acertified public accountant with at least ten (10) years of experience in active
practice.

b) The term of office of each member of the Commission shalll be seven (7) years:
Provided, That among the members first appointed, the Chairperson shall
serve for a period of seven (7) years, two (2) members shall serve for five (5)
years and the other two (2) members shall serve for three (3) years: Provided
further, That any member whose term has expired as specified herein shall
serve as such until his successor shall have been appointed and qualified:
Provided furthermore, That any appointment to fill a vacancy in the
Commission arising from death, removal, retirement or resignation shalll be
made only for the unexpired term: Provided, finally, That in no case shall any
member serve for more than seven (7) years in the Commission.

©) The Commission shall meet as often as may be necessary on such day or days
as the Chairperson may fix. The presence of at least three (3) members of the
Commission shall constitute a quorum, which shall be necessary for the
transaction of any business. The affirmative vote of majority of the members
of the Commission where a quorum is present shall be necessary for the
adoption of any order, resolution, decisions, or other act of the Commission
in the exercise of its quasi-judicial functions: Provided, That in promulgating
rules, regulations, guidelines and in exercising its quasi-legislative functions,
an affirmative vote of three (3) members shall be required.

d) The Chairperson of the Commission shall exercise general executive control
and supervision over the Commission and its members, staff and personnel,
agents and representatives. Within three (3) months from the creation of the
Commission and the appointment of all Members of the Commission, the
Chairperson shall determine and establish the organizational structure and
plantilla positions necessary to carry out the powers and functions of the
Commission, subject to the review and approval of the DBM.

The plantilla positions of the Commission shall be filled by regular
appointments in accordance with Civil Service laws, rules, and regulations.
Members of the Commission shall enjoy security of tenure and shall not be
suspended ore removed from office except for just cause as specified by law.

e) The Chairperson and members of the Commission or any of their relatives
within the fourth civil degree of consanguinity or affinity, legitimate or

34


common law, shall be prohibited from holding any interest whatsoever, either
as investor, stockholder, officer or director, in any company or entity engaged
in provision of water supply and distribution, septage management and
sewerage services and must, therefore, divest through sale or legal disposition
of any and alll interests in the water sector upon assumption of office.

SEC. 24. Secretariat of the Commission. - The Commission shall establish a
Secretariat which shall provide the Commission with technical and support services
including the following:

a) Provide the necessary technical inputs and secretariat support to the
Commission to facilitate the conduct of its functions;

b) Coordinate with Regulatory Units to ensure proper implementation of the
rules, regulations and guidelines promulgated by the Commission;

c) Monitor and assess activities of the Regulatory Units vis-a-vis their respective
annual performance plans and targets;

d) Maintain a database on the water supply and sanitation subsector; and

e) Coordinate with other relevant agencies of the national or local government
on any matter relating to water supply and sanitation.

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

‘The Executive Director shall be responsible for the effective implementation
of the policies, plans, programs, rules, regulations and directives of the Commission;
coordinate and supervise the activities of the different operating units under the
Commission; and perform such functions as may be assigned by the Chairperson
and/or other members of the Commission.

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

CHAPTER V
REGISTRATION AND LICENSING

SEC. 27. Registration and Licensing of All Water Supply and Sanitation Services. ~
All water supply and sanitation service providers, including bulk water suppliers
and those providing services to subdivisions and other Service Providers, shall
register with the Commission and, subject to such rules, guidelines, procedures and
other issuances of the Commission, obtain a license to operate from the appropriate
Regulatory Units.

35


The Commission shall ensure that the grant and revocation of licenses are
carried out fairly, transparently, and without discrimination. Issuances of the
Commission shall specify, among others, the qualifications, requirements and
procedure for the grant and revocation of licenses, including the standards and
performance targets that shall continuously be complied with to keep the licenses
valid.

Unless otherwise provided in this Act or by the Commission, no public water
supply and sanitation service provider shall commence or conduct the business of
providing water supply and sanitation services without first obtaining a license.

Concession agreements and other contracts for water supply provision and
water sanitation and treatment services currently existing shall remain valid and
enforceable unless otherwise terminated, after due notice and hearing for reasons
provided in the existing terms and conditions under the concession or service
agreement or contract, or when invalidated by the Commission, after due notice and
hearing, where national security, national emergency or public interest so dictates.

SEC 28. Conditions of License. - The Commission or the concerned regulatory
unit, may impose such conditions on the licensee as it may deem necessary, such as:

a) Tariffs, rates and charges that may be imposed from its customers or
consumers;

b) Term fixing the duration of the privilege;

©) Grounds for modification, suspension or cancellation of the License;

d) Minimum technical performance and service level standards;

e) Expansion targets and service level improvements over time;

f) Restrictions or conditions for transferability of the business or controlling
interest in the business;

g) Reportorial requirements and obligations of the grantee;

h)Submission to annual performance audit by the Commission or its duly
authorized representative(s).

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

All existing providers of water supply and sanitation services without a legal
and valid CPC, CPCN, or CoC shall register with the Commission and apply for a
License within six (6) months from the effectivity of this Act.

SEC. 29. Rights and Duties of Licensees. ~

36


a) Any person granted a license under this Act shall have the obligation to ensure
that licensed activities are conducted to further public interest and, in
particular:

i. Foster the maintenance and development of efficient, coordinated, and
viable operation of their licensed activities;

ii, Ensure that their water supply and sanitation services are provided in a
diligent, conscientious and workman like manner, in accordance with
applicable laws, rules, and regulations issued by the Commission and the
generally accepted standards and practices in the water supply and
sanitation industry;

Comply with drinking water quality requirements and standards that may
be established by the Commission; and

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

c) Subject to any condition or limitation laid down in the license, a licensee may
discontinue water supply and sanitation services to a customer if such
customer defaults in the payment of fees due to the licensee for the water
supplied or sanitation services provided, or for acts of pilferage pursuant to
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the
Water Crisis Act of 1995.

d) Any license issued under this Act shall contain provisions designed to ensure
that licensees:

i, Publish the Tariff and other charges approved by and the terms and
conditions imposed by the Commission for the provision of water supply
and sanitation services;

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

iii, Maintain financial accounts in accordance with the manner and procedure
specified in the License and as may be required by the Commission; and

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

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43

45
46

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

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

a) Reasonable and prudent capital and recurrent costs of providing the service
including a reasonable rate of return on capital;

b) Efficiency of the service;

¢) Incentives for enhancement of efficiency;

) Willingness to pay of the customers/consumers;

) Equity considerations; and

f) Administrative simplicity.

Tariffs, rates and charges set by the regulatory units shall be presumed valid
and reasonable unless a protest or contest is filed with the Commission.

SEC. 31. Direct Access. - Fifty-one percent (51%) of the registered water
consumers in a municipality, city or province may petition for direct access to water
from any water service provider subject to concurrence by the service provider and
approval by the Commission. The Commission shall promulgate rules and procedures
for this mode of service.

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

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

CHAPTER VI
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION

SEC. 33. Proceedings Before the Commission. - For the purpose of any
investigation, inquiry or proceeding, the Commission shall:

a) Issue subpoena duces tecum and subpoena ad testificandum;

b) Appoint hearing officers to hear and receive evidence on behalf of the
Commission;

c) Cite any person or party in contempt for refusal to appear, testify or comply

38


with an order of the Commission on any matter that is the subject of
investigation, inquiry or proceeding before the Commission.

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

The Commission shall publish and make available for public inspection, all
decisions and final orders in the adjudication of contested cases or applications.

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

a) The orders, rulings, and decisions of the Commission are final and executory
unless appealed to the Court of Appeals within fifteen (15) days from receipt
of notice of such order, ruling or decision: Provided, That orders, rulings, and
decisions of the Commission approving tariffs, shall be immediately
executory and may be suspended only upon appeal and filing of a bond, in
an amount to be fixed by the Commission, to answer for damages occasioned
by the suspension or stay of execution of such orders, rulings, and decisions.

b) No injunction may be issued by any court or administrative agency to restrain
any proceeding before, or the implementation or execution of any order,
ruling, or decision of the Commission, except on the basis of a question of law
brought before the Supreme Court on certiorari.

©) Any act or decision of the Commission shall not be invalidated merely because
of a defect or irregularity in, or in connection with, the appointment or vacancy
in the Office of the Chairperson or any other member of the
Commission.

CHAPTER VII
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

SEC. 36, Interface with Other Sector Regulators. ~

a) The DENR shall continue to exercise primary jurisdiction over programs aimed
at protecting the environment and the quality of water sources from waste and
pollution, and shall promulgate rules, regulations, and standards in this regard.
The Department of Health (DOH) shall continue to exercise primary
jurisdiction in determining and enforcing compliance with standards for
quality drinking water and sanitation.

b) The Commission shall coordinate with:

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

39


2) LGUs for development projects relating to water supply and sanitation;
and
3) DPWH for flood control and harnessing and impounding of water.

SEC. 37. Transfer of Rights and Obligations. - The Commission shall, by virtue
of this Act, be subrogated to all the rights, and assume alll the obligations, of the Water
Utilities Division of the NWRB, the regulatory offices of MWSS and LWUA, the
regulatory units of all special economic zones, and all other government agencies and
units whose powers and functions have been transferred to the Commission.

The transfer of powers and functions to the Department of the concerned
agencies, as herein provided for, shall be deemed completed within six (6) months
after the effectivity of this Act. The transfer of powers and functions shall include all
applicable funds, personnel, records, property and equipment, as may be necessary.
The same shall apply to agencies which have been attached to the Department by
virtue of this Act.

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

All rights and obligations of the affected agencies are hereby transferred to and
assumed by the Commission, and shall be acted upon in accordance with the rules
and regulations of the Commission on Audit and other pertinent laws, rules, and
regulations.

SEC. 38. Absorption or Separation from Service of Employees of the Subrogated
Agencies. - The current employees of the Water Utilities Division of the NWRB,
the regulatory offices of MWSS and LWUA, the regulatory units of all special
economic zones, and all other government agencies and units whose powers and
functions have been transferred to the Commission shall enjoy security of tenure, and
shall be absorbed by the Department, in accordance with their staffing pattern and the
selection process as prescribed under Republic Act No. 6656 or the Government
Reorganization Law.

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

SEC. 39. Water Trust Fund. - There is hereby created a Water Trust Fund in the

Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees,
registration fees, supervision and regulation enforcement fees, filing fees, testing fees,

40


and other service income from the use of water resources shall be remitted to the
Water Trust Fund. The trust fund shall be accounted separately from the
government's general revenues and shall be automatically appropriated to the
Department. Proceeds from the trust fund shall be exclusively utilized for water
development, water sanitation and waste water treatment and management, and
water sustainability programs and projects authorized under this Act: Provided, That
a maximum of ten percent (10%) of the total income generated from raw water
extraction shall be given as share of the concerned LGU or indigenous peoples (IP)
community who own the specific areas or land where the raw water was sourced.

CHAPTER VIII
FINAL PROVISIONS:

SEC. 40. Applicability of Ease of Doing Business Law. - The prescribed processing
time provided under Section 9.b of Republic Act No. 11082, otherwise known as the
Ease of Doing Business and Efficient Government Service Delivery Act of 2018, shall be
applicable to all agencies and LGUs covered under this Act particularly on accessing
government services.

SEC. 41. Transitory Provisions. ~ Performance audit of all water-related agencies
and institutions, including but not limited to LWUA and water districts, MWSS,
MWSS-RO and its concessionaires, LGU-run utilities, Tourism Infrastructure and
Enterprise Zone Authority, Philippine Economic Zone Authority, Bases Conversion
and Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA, shall
be conducted by the Department.

SEC. 42. Appropriations. - The amount necessary to cover the initial
implementation of this Act shall be charged against the current year’s appropriations
of the agencies and offices transferred and subsumed by the Department and the
Commission in the General Appropriations Act (GAA). Thereafter, such sums as may
be necessary for the continued implementation of the Act shall be included in the
annual GAA.

SEC. 43. Implementing Rules and Regulations. - Within one hundred eighty (180)
days from the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in
consultation with the concerned government agencies, shall promulgate rules and
regulations for the effective implementation of this Act.

SEC. 44. Separability Clause. - If any reason, any portion or provision of this Act
shall be held unconstitutional or invalid, the remaining provisions not affected
thereby shall continue to be in full force and effect.

SEC. 45. Repealing Clause. -
(a) The following provisions are hereby repealed:

41


1) Section 3 (h) and Section 12 on the provision with respect to fixing of water
rates and sanitation service fees, Section 3 (n) on the provision with respect
to regulation of waterworks an deep wells, and Section 3 (p) on the
provision with respect to the regulation of waterworks and sanitation
systems in privately owned subdivisions of Republic Act 6234 entitled, An
Act Creating The Metropolitan Waterworks And Sewerage System And Dissolving
The National Waterworks And Sewerage Authority, And For Other Purposes, as
amended;

2) Title HI on Local Water Utilities Administration Law of Presidential

Decree No. 198 otherwise known as the Provincial Water Utilities Act of

1973, as amended by Letter of Instruction No. 700 - Providing Measures To

Control And Regulate Increase In Water Rates, Letter of Instruction No. 744 -

Relative To Reliable Water Supply At Reasonable Rates In The Countryside,

Executive Order No. 124, 30 January 1987 - Reorganization Act of the

Ministry of Public Works and Highways, Executive Order No. 123, 30 January

1987 - Reorganization Act of Ministry of Social Services and Development;

3)

Republic Act No. 3601 as amended by Presidential Decree No. 552 and
Presidential Decree No. 1702 pertaining to the creation of the National
Irrigation Administration;

4)

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

(b) The following provisions are hereby amended accordingly:

1) Section 3 paragraph 3 of Commonwealth Act No. 146, as amended,
otherwise known as the Public Service Act, pertaining to all cases involving
the fixing of rates;

Section 154, Article V, Chapter I, Title One, Book II of Republic Act No.
7160, as amended, otherwise known as the Local Government Code of 1991,
and its implementing rules and regulations on the power of the local
government units to fix the rates of water utilities owned, operated and
maintained by them within their jurisdiction;

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

Section 69 of Republic Act No. 9593 otherwise known as the Tourism Act of
2009 and its implementing rules and regulations which mandate the
Tourism Infrastructure and Enterprise Zone Authority to grant franchises,
supervise the operation of public utilities, and register, monitor and
regulate enterprises within Tourism Enterprise Zones;

2)

3)

4)

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5) Sections 7 and 8 on the adjudication of water pollution cases under Republic

Act No. 3931 entitled An Act Creating the National Water and Air Pollution

Control Commission, particularly with respect to Section 6 (e), (f), (g), (j), and

(k) of Presidential Decree No. 984 entitled, Providing for the Revision of

Republic Act NO. 3931, Commonly Known as the Pollution Control Law, and For

Other Purposes;

Sections 4 (1) and 7 of Republic Act No. 9275, otherwise known as the

Philippine Clean Water Act of 2004;

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

8) Sections 9, 10, 11, 12 and 13, Chapter II of Presidential Decree No. 856,

otherwise known as the Code on Sanitation of the Philippines; and

Section 3.2(b) of Executive Order No. 149, series of 1993 transferring the

Laguna Lake Development Authority from the Office of the President to the

Department of Environment and Natural Resources.

6)

9)

All other laws, presidential decrees, executive orders, presidential
proclamations, rules and regulations, or parts thereof which are inconsistent with
the provisions of this Act are hereby repealed or amended accordingly.

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

Approved,

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