Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNO._4123

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

EXPLANATORY NOTE

The 1987 Philippine Constitution declares water resources as State property,
emphasizing the national government's sole ownership and control over their exploration,
development, and utilization. It also mandates the State to protect the right to a balanced
and healthful ecology, including the preservation of water quality and the protection of
marine wealth.

This bill seeks to create a Department of Water Resources to address the
fragmented water sector, ensure universal access to safe water and sanitation, mitigate
water scarcity and climate change impacts like droughts and floods, and consolidate
overlapping water management functions under a single, dedicated agency with a
comprehensive national framework. This centralized approach is necessary because water
resources are a shared national resource, not limited by political boundaries, and requires
imegrated planning and management to meet growing demand and protect vulnerable
systems.

In this measure also is the creation of the Water Regulatory Commission. The
Commission will be an independent regulatory body tasked with overseeing the
performance, compliance, and service delivery of all water service providers, whether
public or private. It is also mandated to ensure that water resources are delivered efficiently,
safely, and at a fair rate, while safeguarding consumer rights and promoting accountability.

In view of the foregoing, passage of this bill is earnestly requested for.

lade
ATTY. JAN RURIK PADIERNOS

GP (Galing sa Puso) Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _/ 12 3

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

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

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

CHAPTER I
GENERAL PROVISIONS

Section 1. Short Title. -This Act shall be known as the "Department of Water
Resources Act.

Sec. 2, Declaration of Policy. -

(a) The State recognizes the fundamental right of every person to safe, clean, accessible, and affordable
\water, as essential to life, health, dignity, and development:

(b) The State affirms that the right of al Filipinos to safe and clean drinking water and sanitation is
essential to the full enjoyment of life and all human rights.

Accordingly, the development of a nationwide water supply. sanitation, and sewerage system at
reasonable rates shall be pursued in an orderly, rational, efficient, and responsive manner:

(c) The State emphasizes that water is a scarce and valuable natural resource, recognized as both a public
good and an essential economic good, supporting employment, agriculture, livelihoods, and sust
‘economic productivity. As such, the regulation and management of water must be carefully pla
‘ensure its long-term availability for future generations and to address emerging threats posed by increasing
demand. population growth, and climate change;

(d) The State likewise affirms that water is indispensable not only to human development but also to the
sustainability of natural ecosystems, as it supports biodiversity. sustains aquatic life, and is
to climate, soil, land use, forests, and other natural resources. Eflective water mana,
requires coordination among sectors, agencies, institutions, and stakeholders to harmonize relevant laws,



policies, and initiatives; and

(e) Finally, the State maintains that all water resources remain under its full ownership, control, and
supervision. In pursuit of the efficient, affordable, and equitable delivery of water supply, sanitation, and
septage services to all end-users, the State may enter into arrangements with the private sector, civil
society, and community-based organizations based on the principle of beneficial use. These arrangements
are deemed public service in nature and shall be subject to clear standards of transparency, public
‘oversight, and accountability to ensure that all service providers fulfill their obligations in accordance with
the public interest.

In line with these principles, itis hereby declared the policy of the State to ensure that all Filipinos have
access to safe, sufficient, and affordable water supply, sanitation, and septage services through the rational,
evidence-based, and integrated management of all water resources. This shall be carried out under a policy
and regulatory framework that promotes innovation and responsible private sector participation, while
ensuring environmental sustainability and recognizing that the delivery of water to the public is of
paramount importance.

‘Sec. 3. Definition of Terms. -The following terms are hereby defined as follows:

(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 it for 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:

(0 disposal services which reflect the functions of the natural environment as an absorptive sink
for residuals;
(i) productive services which reflect the economic functions of providing natural resource inputs
and space for production and consumption, and
ii) 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, and
hyper-concentrated flows or debris flows;

(@) Flood Risk Management (FRM) refers to such acts of defining and determining the appropriate
methods, acts and protocols aimed at preventing and reducing the risk of incurring loss of both life and
property due to flood waters. Flood risk management consists of a cycle of prevention, mitigation,
adaptation, preparedness, and early waming, 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, and
storm surges; managing risk and uncertainty as a whole so it is not only hydrological uncertainties but
also social, economic, and political uncertainties on account of human behavior and cultural dimensions
of FRM;

(©) Infrastructure and public works refer only to wholly or primarily water-related projects and shall not
incorporate projects that do not otherwise fall within thepurview of the objectives, powers, and duties of


the Department of Water Resources created under this Act;

(f) 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;

(g) License refers o the Water Supply or Sanitation Services Operating License that the Water Regulatory
Commission is authorized to grant and issue to Service Providers;

(h) Licensee refers to the Service Provider to whom a License is granted or issued by the Water Regulatory
Commission;

(9) Missionary Water refers 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 o a policy document that incorporates
a framework to guide the development and management of all water resources in the Philippines, the
general strategies and work to be pursued to ensure the sustainability of the resource and work

towards the water security; and provides 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 for 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 on public, private and international development funding sources;

(k) Regulatory Units refer to the regulatory offices of the Water Regulatory Commission established under
this Act;

()) 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;

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

(n) Sanitation refers to the provision of facilities and services for the safe management of septage and
‘sewage, from the collection 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;

(0) Septage refers to the liquid and solid material pumped from a septic tank, cesspool, or other primary
‘treatment source.

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

(q) Service Area refers to the area covered by the water distribution system, sewerage, and septage
management services;

(8) Service Provider refers to any entity, natural or juridical, whether private or public, providing or
intending to provide water supply, including bulk water suppliers, sewerage, septage treatment, and
disposal services for domestic, residential, institutional, industrial, or commercial use;


(s) Sewage refers to water-bome 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 water as may be present including such waste from vessels,
offshore structures, other receptacles intended to receive or retain waste or other placesor the combination
thereof,

(t) Sewerage refers to any system or network of sanitary 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;

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

(¥) Tariff refer to such amounts which may be charged by licensees for their water supply, sewerage, or
sanitation services based on principles, standards, and guidelines established by the Water Regulatory
Commission;

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

@ Reduce the quantity or quality of water required to accomplish a specitic task;

(ii) 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;

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

disposal;

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

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

(x) Water District refers to government-owned and controlled corporations organized under Presidential
Decree No. 198, otherwise known as the "Provincial Water Utilities Act of 1973”, 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 wastewater
collection, treatment and disposal facilities within the boundaries of the district;

(y) 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 purty or quality;

(z) 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; treated wastewater, water in the
atmosphere of rain water; and the waters of the sea within the territorial jurisdiction of the Philippines;

(aa) Water resource allocation refers to the process of sharing the limited water resources between
competing users. This consists of determining water availability and determining how the water should
be shared among competing users. For the purpose of this Act, resource allocation shall also mean water
resource allocation;

(bb) Water Resources Regions refer to the contiguous clusters of river basins created under this Act for


administrative purposes under the Department of Water Resources;

(cc) Water Resources Regional Offices (WRROs) refer to the field offices of the Department of Water
Resources, as created under this Act, which are to be established in accordance with the identified water
resources regions in the country;

(dd) Water service cooperative refer to cooperatives organized primarily to own, operate, and manage
‘water systems for the provision and distribution of potable water for the members and their households

(ce) Water Service Providers (WSPs) refer to the water districts, any Local Goverment Unit (LGU)-run
water utility, Barangay Waterworks and Sanitation Association, Rural Waterworks and Sanitation
Association, water service cooperatives, and private sector entities that provide water supply services
toany given area,

(8) Water supply service refers to any activity comprising developed water sources, communal faucet
system or stand posts, waterworks system or individual house connections, which include bulk suppliers,
suppliers to subdivisions, or other similar water service providers.

CHAPTER I
DEPARTMENT OF WATER RESOURCES

Sec. 4, Establishment of the Department of Water Resources. - There is hereby established the
Department of Water Resources, hereafter referred to as the Department.

Sec. 5. Mandate and Objectives. -The Department shall be the primary policy, planning,
coordinating, implementing, monitoring, and administrative entity of the Executive Branch of the
‘government responsible for the comprehensive, sustainable, climate-resilient, and integrated development
and management of the water resources of the Philippines, and their optimal allocation and use for
domestic and municipal water supply, sanitation, irrigation, hydropower, industry, navigation. flood
management, and recreation, and water utilization aspects of 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
‘sewerage and sanitation services for all Filipinos.

Sec. 6. Powers and Functions. -The Department shall exercise the following powers and
functions:

I. Policy Making 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;

(6) Formulate policies, strategies, and targets in coordination with other relevant agencies and
stakeholders to meet the goals and objectives for water resource sustainability and protection, water
allocation and management, water supply, sanitation, and sewerage, water quality, irrigation, hydropower,
flood control, stormwater utilization, and urban drainage. Such policies shall, among —_other
guidelines, integrate the relevant issues of water, sewerage, sanitation, food security, energy, environment,
flood control, and climate change;


(©) Formulate long-term policies to balance the sustainability and optimal multiple use of water
resources, define the hydrologic boundaries of basins of the existing water supply sources, and develop or
update existing River Basin Master or Comprehensive Plans which includes all aspects of water
management and development such as water supply, sewerage, and sanitation, irigation, flood control
‘and storm water or urban drainage, drought risk management, water resource development systems and
other public water works projects, including phasing of implementation;

(d) Harmonize all relevant national river basin policies and serve as the national policy coordination
office for LGUs and relevant stakeholders in the development and sustainability of river and catchment
basins;

(©) Identify, based on the river basin master plans, priority projects for water infrastructure
development per river basin, including water supply, sanitation, irrigation, hydropower, flood control and
storm water or urban drainage, drought risk management, water resource development systems and other
public works projects;

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

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

(h) Develop, in consultation with relevant agencies and stakeholders, the National Water Resources
Management Plan (NWRMP) and ensure its integration into existing Comprehensive Land Use Plans
and Provincial Development and Physical Framework Plans, within the context of a National Physical
Framework Plan, to ensure the harmonization of planning of water, land, subsurface, and air resources,
submit the NWRMP to the National Economic and Development Authority Board (NEDA) for approval
and eventual adoption, and regularly update the NWRMP, every five years or as deemed necessary by
the Department, in order to ensure its relevance to the times;

() Prepare, formulate, implement, and update a five (5) year plan of action for National and
Regional Septage Management, which shall contain measures for the construction of wastewater
treatment facilities and provision, installation, operation, maintenance and, where practicable, the
integration of sewerage, septage management, storm water management and other sanitation facilities, in
accordance with Republic Act No. 9275, otherwise known as the "Philippine Clean Water Act of 2004".
‘Compliance with the mandate to implement septage management services and systems by any WSP
pursuant to Republic Act No. 9275 shall be reckoned within five (5) years from the date of promulgation
or publication of the septage management plan formulated by the Department;

() Review and provide oversight over all water-related development plans and programs of any
agency or local government unit (LGU) within the context of the NWRMP and overall national plans and
Programs;

(k) Assist and provide the 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;

(1) Strengthen and coordinate with relevant agencies on 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;

(m) Develop and implement, in coordination with other relevant agencies and stakeholders, 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; and ensure that the planning
and design of water infrastructure considers the highest efficiency and most appropriate technology and
quality;

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

(©) Actas the lead agency in ensuring the effective implementation of all laws and implementing
rules and regulations on water resources;

(p)__ Review all water laws and implementing rules and regulations and propose amendments thereof
to Congress, and advise any agency on the implications of govemment actions, policies, and programs to
water supply, sewerage, and sanitation;

@ Authorize its representatives or any deputized agent to enter any property of public dominion or
any private land, building or enclave, whether inhabited or not, or authorize a representative thereof, for
the purpose of conducting hydrological surveys and investigations, including assessing and evaluating the
conditions of water facilities installed, and determining compliance with water laws and standards; and

(8) Issueand promote rules and regulations as may be necessary to implement and enforce its powers
and funetions under this Act.

II. Data Collection and Evidence Gathering

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

(b) Effect inter-sectoral, inter-agency and inter-departmental coordination on all aspects of data
gathering and data sharing for water resources development planning and compel submissions of statistics
and data on water management with the aim of operationalizing the IWRM framework:

(©) 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 in coordination with the river basin initiatives of relevant
government entities;

d@ Collect, regularly update, monitor, and analyze water resources data including climatology,
hydrologic, and other water-related data;

(©) Establish, in coordination with agencies that generate water-related data. the guidelines,
standards, methodologies, and protocols for data collection that will be officially recognized by the
Department, and institute mechanisms for coordination with other agencies as regards their submission


and certification of submitted water-related data to the Department;

() Conduct continuing hydrological and hydrometeorological surveys and studies of the country's
renewable water supply, and establish, operate, and maintain observation station networks;

(2) Conduct and promote special studies and research on water economics and other aspects of water
resources development and management as may be needed to support the policy and plan proposals of
the Department, such as, but not limited to, impacts of climate change, weather modification, flood
monitoring and modeling, environmental quality, and desalination;

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

() 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 conceming graphical and visualization tools; and

() 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, food security and environment.

Il Water Resource Management and Allocation
(a) Formulate, issue, and enforce rules and regulations on the following:

() Abstraction, diversion, and development of the country’s water resources, taking into
consideration their equitable distribution among competing demands and determine the standards
of beneficial and priority uses of water in times of crises and national emergencies;

ii) Equitable and optimal allocation of the country's water resources for domestic and
municipal water supply, irrigation, sanitation, irrigation, hydropower, navigation, fisheries,
livestock raising, industrial, recreational, and other purposes;

ii) Determination and granting of water rights, including adjudication in cases of conflicting
uses, amending for this purpose, Act No. 2152, otherwise known as "The Irrigation Act, and
ther laws relating to the appropriation and utilization of surface and groundwater: Provided, That
the grant and adjudication of conflicting water rights shall be exercised by the Water Resources
Adjudication Board;

(iv) Such other coherent water protocols as may be necessary, including the operating rules
of all existing and future water infrastructure, legal and technical mechanisms for intra- sectoral

(vy) Guidelines for the determination of costs and fees of all water rights, tariffs, permits, and
licenses through a science-based method which will accurately reflect the current or future
projected state of the water resource to be allocated: Provided, That the actual methodology for
setting rates and tariffs shall be the exclusive power of the Water Regulatory Commission:

(vi) Methods and standards for basic data collection and project identification, formulation
and planning, and appropriate sanctions to be imposed for non-compliance;

(vii) Guidelines in the grant of areas for missionary water, such as, but not limited to,
corresponding non-tax incentives and possible sources of funding and revenues;

(viii) Treatment and utilization, in coordination with relevant agencies, of flood control, rain-
‘water run-off, stormwater, and urban drainage;


(6) Exercise original jurisdiction over all disputes relating to appropriation, utilization, exploitation,
development, control, conservation and protection of all water resources, the adjudication of which shall
be enforced by the Water Resources Adjudication Board;

(©) Impose fees or charges, as may be deemed necessary for water resources conservation and
protection, in accordance with applicable rules and regulations on the imposition and increase of fees or
charges, such as, but not limited to:

(i) ‘Raw water price, which shall take into account, among others, the scarcity of water; and
(ii) Appropriate structures for payment of environmental services;

(@) 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.

IV. Administration and Management

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

(6) Develop materials for capacity building and training on RBO development and conduct training
and workshops for prospective RBOs:

(©) 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;

(d) Conduct a performance audit of all water-related agencies and institutions, including but not
limited to the water districts, MWSS, MWSS-ROand 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;

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

() —_Deputize any official or agency of the goverment to assist in the performance of any of the
powers and functions of the Department; and

(@) Appoint, hire, and maintain adequate staff and personnel, advisers or consultants with suitable
qualifications and experience, as necessary, in accordance with relevant civil service laws, rules, and
regulations,

V. Coordination

(2) Coordinate and rationalize the efforts of relevant government agencies and instrumentalities to
ensure a whole-of-government approach to attaining water security;

(6) Coordinate and integrate water resources development activities of the country within the context


of national plans and policies for social and economic development;

(©) Coordinate with other govemment agencies, universities, academe, and private professional
‘groups in all aspects of data gathering, the conduct of special studies and research on all related aspects of
waler resources management and development such as climate change, environmental quality,
desalination, and the development of operating strategies, procedures, and protocols with accompanying
computerized decision tools for major water facilities;

(@ Coordinate with the concemed and relevant agencies engaged in flood control, flood risk
management, and drought risk management; and

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

VI. Other Functions

(a) Create, when necessary, water resource subsidiaries, instrumentalities, and entities to engage in
water transmission, water distribution, wastewater treatment and management, and sanitation in
accordance with existing relevant laws, without prejudice to private entities capable of and
willing to engage in the aforementioned activities through concession agreements, joint venture
agreements, bulk water agreements, or service agreements or contracts. For this purpose, the Department
shall ensure compliance with existing frameworks, rules, regulations and guidelines for private sector
participation in water transmission, water distribution, waste water treatment and management, storm
‘water management, and sanitation;

(6) Enter into contracts, joint venture agreements, public-private partnerships, and memorandum,
of agreements 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;

(©) _ Review existing guidelines appropriate for private sector participation in the water sector and
submit recommendations to the Public- Private Partnership (PPP) Center and other concemed agencies
to promote and enable more PPPs in the sector, and

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

See. 7. Offices/ Functions and Personnel to be Completely Absorbed by the Department ~The
following offices are hereby abolished, and their respective powers and functions, and the corresponding
personnel, funds and appropriations, records, equipment, and property shall be absorbed by the
Department:

(a) National Water Resources Board, whose mandate, powers, and functions are provided in
Presidential Decree No. 424 creating the National Water Resources Council, now NWRB, as amended:
Provided, That its water utility regulation units and functions vested under Commonwealth Act No.

146, also known as the "Public Service Act", as amended, shall be absorbed by the Water Regulatory
Commission created under this Act: Provided, further, That its resource allocation or regulation units
‘vested under Presidential Decree No. 1067 shall be absorbed by the Department under the National Water
Resources Adjudication Board and the Resource Allocation Office, also created under this Act;


(6) Local Water Uiilities Administration (LWUA) with its services, departments and divisions,
‘whose mandate, powers and functions are provided for in Title III of Presidential Decree No. 198, as
amended, otherwise known as the "Local Water Utilities Administration Law": Provided, That its
‘economic regulatory functions over local water districts shall be fully absorbed by the Water Regulatory
‘Commission created under this Act: Provided, further, That its function to provide technical assistance to
local water service providers shall be absorbed by the Department under the Local Water Service
Providers Bureau, also created under this Act;

(©) __ River Basin Control Office (RBCO) of the DENR whose mandate, powers and functions are
found in Executive Order No. 510, series of 2006, and Executive Order No. 816, series of 2009, as
amended: Provided, That the DENR shall continue to have primary authority and responsibility for
protecting the environment and managing the country's watersheds and reforestation activities: Provided,
further, That the targeting of priority watershed areas shall be coordinated with the Department;

(@) Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened by virtue of
DENR Administrative Order 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;

(3) ‘Water Supply and Sanitation Unit of the Department of the Interior and Local Goverment; and

wo ‘Water Resource Management Office of the DENR whose mandate, powers, and functions are
provided in Executive Order No. 22, series of 2023.

Sec. 8. Powers and Functions to be Transferred to the Department — The powers and functions
of the following agencies, bureaus, and units and the corresponding personnel, funds and appropriations,
records, equipment, and property are also hereby transferred to the Department:

(@) The powers and functions of the DPWH with regard to the planning, programming,
administration, monitoring, and management of the National Sewerage and Septage Management
Program (NSSMP); and

(b) The following functions of the dissolved Pasig River Rehabilitation Commission and transferred
to the Manila Bay Task Force per Executive Order No. 93, series of 2019:

()) Updating and leading in the overall implementation of the Pasig River Rehabilitation
Master Plan; and

(i) Ensuring that the easements provided for in the Civil Code and other relevant laws are
enforced, especially in all the esteros and waterways as well as abating the dumping of untreated
‘wastewater and sewage into water systems, including all acts and omissions in violation of
Presidential Decree No. 984, as amended, and other related laws.

See. 9, Attached Agencies. - The Department shall exercise administrative supervision over the
following agencies for purposes of policy and program coordination, monitoring, and evaluation:

(@) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate, powers, and
functions are defined under 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 DENR 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 connection with existing projects; manage, operate, and dispose its retained
assets: Provided, Further, That its regulatory arm, the MWSS-Regulatory Office, shall be fully absorbed
by the Water Regulatory Commission created under this Act;

(b) ‘The Laguna Lake Development Authority (LLDA), whose mandate, powers and functions are
defined under Republic Act No. 4850 otherwise known as "An Act Creating the Laguna Lake
Development Authority, Prescribing Its Powers, Functions and Duties, Providing Funds Therefor, and for
Other Purposes’ as amended, shall be transferred from DENR and attached to the Department: Provided,
‘That the power to set rates and fees for the use of the lake waters and its tributaries for all beneficial
purposes under Section 4-B of Republic Act No. 4850, and the comesponding personnel, funds and
appropriations, records, equipment, and property thereof shall be transferred to the Water Regulatory
Commission: Provided, further: That the rates fees set by the WRC shall no longer be subject to the
approval of the President of the Philippines. The LLDA shall continue to serve as the lake management
and Development authority similar to a multistakeholder 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 NWRMEP;

(©). _ The National Irrigation Administration (NIA), whose mandates, powers and functions are
defined under Republic Act No. 3601, otherwise known as "An Act Granting the National Irrigation
Administration", as amended, is hereby transferred to the Department; and

(@ Any other agency performing —_water_resources management, conservation,
and protection functions may be transferred to the Department as the President deems necessary. The
Secretary shall be the ex-officio Chairperson of the Governing Boards of the aforementioned govemiment-
owned and controlled corporations to be attached under the Department. In case existing laws, rules and
regulations provide for a specific process in appointing the agency's Chairperson, the Secretary of Water
Resources shalll serve as Co-Chairperson.

See. 10. Organization. -The Department shall be composed of the Office of the Secretary, and
the various bureaus and services, and regional offices. The Office of the Secretary shall house the Office
of the Department Secretary, the Office of the Undersecretaries, the Office of the Assistant Secretaries,
and their immediate support staff.

Sec. 11. 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 be appointed
by the President, subject to confirmation by the Commission on Appointments. The Secretary shall:

(a) Provide executive direction, supervision, and control over the entire operations of the Department
and exercise supervision over its attached agency for program and policy coordination;

(b) Advise the President on the promulgation of executive or administrative orders, and other
issuances and on the formulation of necessary regulatory or legislative proposals on matters
pertaining to the management of water resources, water supply, sanitation, and septage services;

(c) Establish the policies and standards for the effective, efficient, and economical operation of the
Department pursuant to the President's guidelines;

(d) 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;

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

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

(e) Exercise control, supervision, and disciplinary powers, in accordance with law, over all officers
and employees of the Department, including their investigation and the designation of a committee or
officer to conduct such investigation, in accordance with the civil service laws, rules and regulations;

(h) Create regional offices and such other service units, bureaus, and divisions as may be necessary;

(i) Call upon and deputize any official, agent, employee, agency, or instrumentality of the national
and local government for any assistance that it may deem necessary to carry out the purposes of this
‘Chapter, subject to existing laws;

(Delegate authority for the performance of any power or function, as defined herein to officials
and employees under his direction as deemed appropriate, in accordance with existing laws;

(k) Act as the ex-officio Chairperson of the governing board of the agencies attached to the
Department; and

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

Sec. 12. The Offices of the Secretary and Undersecretaries. - The Office of the Secretary shall
be composed of the Secretary and immediate staff. The Secretary shall be assisted by not more than three
(3) Undersecretaries and three (3) Assistant Secretaries, who shall all be appointed by the President upon
the recommendation of the Secretary.

‘The Secretary is hereby authorized to delineate and assign the respective functional areas of responsibilty
of the Undersecretaries and Assistant Secretaries: Provided, That such responsibilty shall be with respect
to the mandate and objectives of the Department: Provided further, That no Undersecretary shall be
assigned primarily to administrative responsibilities.

Sec. 13. Qualifications of the Department Secretary, Undersecretaries and Assistant
Secretaries. -

(a) No person shall be appointed Secretary, Undersecretary, or Assistant Secretary unless he or she
is of good moral character, of proven integrity and competence in public administration, and has a
minimum of seven (7) years of experience in the administration of water, sewerage, sanitation, irrigation,
flood control, or drainage programs, preferably in a public agency;

(b) At least one (1) of the Undersecretaries and at least one (1) of the Assistant Secretaries shall be
career officers;

(©) No officer, extemal auditor, accountant, or legal counsel of any private company or enterprises


primarily engaged in the water industry shall be eligible for appointment as Secretary within two (2) years
from retirement, resignation, or separation therefrom.

Sec. 14. The Water Resources Adjudication Board, -There is hereby created a Water Resources
Adjudication Board, hereafter referred to as the Board, under the Office of the Secretary. The water
resources allocation and regulation functions of the National Water Resources Board are hereby
transferred to the Board which shall supervise the effective appropriation and regulation of the water
resources in the country in accordance with Presidential Decree No. 1067. The Board shall exercise quasi-
judicial powers granted to it under this Act.

See. 15. Composition. - The Board shall be composed of a Department Undersecretary as
Chairperson and three (3) representatives from stakeholders as members, who shall all be designated by
the Secretary.

‘There is hereby created a Resource Allocation Office, hereinafter referred to as the Office, which
shall serve as Secretariat to the Board and shall exercise the following functions in order to provide
technical support to the Board towards the effective
regulation of the country's water resources.

‘See. 16. Functions of the Board. - The Board shall perform the following functions:

(2) Promulgate rules and regulations for the exploitation and optimum utilization of water resources,
in accordance with Presidential Decree No. 1067 and other existing laws, includingthe imposition on
water appropriators of such fees or charges by the Department;

(6) Approve the guidelines and processes pertaining to water regulation, as recommended by the
Research All;

(©) _ Review and decide on requests for permits to extract or utilize the country's water resources and
grant the corresponding water rights, upon recommendation of the Office in accordance with Presidential
Decree No. 1067: Provided, That the water rights are exercised within five (5) years of granting of such
rights: Provided, further, That applicants for water permits shall submit proof of land ownership of, or
right to use the property where the water source is located: Provided, final! That, if the applicant is
currently using the water source being applied for domestic or municipal purposes upon the effectivity of
this Act, such applicant may submit such proof of prior use of possession of said property in lieu of
ownership or right to use;

(@ Exercise original jurisdiction over decisions in cases involving the following:
() All disputes relating to the appropriation, utilization, exploitation, development, control,
conservation, and protection of waters;

Gi) Violations and disputes on raw water fees; and
(iil) Violations and disputes involving water permits, administrative allocation of water
resources, and transfer of water rights;

(©) __ Issue subpoena duces tecum and subpoena ad testificandum;

(®) Cite any person or party in contempt for refusal to appear, testify or comply with the lawful orders
of the Board in relation to any matter subject t its investigation;


(g) Hear, receive evidence, and decide on cases falling within its jurisdiction;

(h) Impose the appropriate sanctions, including revocation of water permits, over violations committed
by appropriators after due notice and hearing in accordance with Presidential Decree No. 1067 and other
existing laws, rules and regulations as well as future rules and regulations which the Board shall
promulgate;

(i) Review, update, and revise all fees, charges, and penalties imposed on all water appropriators as stated
under Chapter VII and VIII of Presidential Decree No. 1067, upon recommendation by the Secretariat,
and based on scientific and evidence-based studies;

(j) Promulgate its own rules and procedures; and

() Exercise such other powers as may be necessary to carry out its duties and responsibilities under this
law.

See. 17. Resource Allocation Office. - The Office shall perform the following functions:
(a) Advise the Board on all matters relating to resource allocation and regulations;
(b) Formulate rules and regulation for the exploitation and optimum utilization of surface water,
‘groundwater, and seawater extraction and use, for the approval of the Board, and for implementation by
the Resource Allocation Office, including the processes for the application of water permits, in accordance
with Presidential Decree No. 1067 and other existing laws;
(c) Process applications of rights to utilize water resources for the appropriate, optimal and
sustainable use of surface and ground water, for the approval of the Board or its Executive Director, as
may be delegated by the Board;
(d) _ Upon approval by the Board, issue water permits granted to water appropriators;

() Monitor performance and conduct audits on water rights grantees including, among others,
review of compliance by grantees with the terms of the permits granted;

(f) Investigate, motu proprio or upon complaint, violations of the water rights and Presidential
Decree No. 1067;

(g) In the case of violations and conflicts between and among users, file the necessary cases for the
decision of the Board;

(h) Enforce the decisions promulgated by the Board, and as may be delegated by the Board;

@ Coordinate with other relevant units of the Department regarding the generation, updating,
managing, and sharing of water data;

@ Respond to consumer complaints, and ensure the adequate promotion of consumer interests; and

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


‘The Office shall be headed by an Executive Director and shall be assisted by one (1) Deputy Executive
Director.

Sec. 18. Orders and Decisions. - Every order or decision rendered by the Board shall be in writing
and shall state clearly and distinctly the facts and the law on which itis based. The Board shall decide each
case or application within thirty (30) days following its formal submission for resolution. All decisions
and final orders in the adjudication of contested cases or applications shall be published and made
available for public inspection.

Sec. 19. Appeals Procedure and Prohibition Against Injunction. —
(@) __ Theorders, rulings, and decisions of the Board shall become final and executory after fifteen (15)
days from receipt of such order, ruling, or decision, unless, prior to the lapse of this period, an appeal was
made with the Secretary of Water Resources;

(6) All decisions where the penalty imposed is a fine shall be immediately executory, except upon
the filing of a bond equivalent to the fine imposed or as may be fixed by the Board;

(©) Except for the Supreme Court, no temporary restraining order, preliminary injunction, or
preliminary mandatory injunction may be issued by any court to restrain any proceeding before, or the
implementation or execution of any order, ruling, or decision of the Board.

Sec. 20, Bureaus and Services. -The Department shall establish, operate, and maintain the
Bureaus and Services under it such as, but not limited to:

(@) The Local Water Service Providers Bureau shall provide technical assistance and personne!
training for the creation, application for the socialized credit program, and operation of local water service
providers, and shall affect system integration, joint investment and operation, district annexation and de-
annexation, whenever economically warranted, in accordance with Section 50 of Presidential Decree No.
198, as amended by Section 22 of Presidential Decree No. 768;

(6) ‘The Bureau of Flood Control and Drainage shall plan and design, in coordination with the DPWH
and other relevant government agencies, flood control and drainage structures and facilities in accordance
with technical standards, guidelines and manuals, and provide technical assistance to other agencies,
LGUs, and other stakeholders;

(©) The Planning and Policy Service shall formulate strategies and priorities for water resources
management and provide the Department with the capability to undertake water infrastructure
development planning and programming;

(4) The Data Management Service shall develop, manage and maintain the management information
system and knowledge systems of the Department, including the processing of water-related data:

(©) 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, in accordance with civil service laws, rules, and
regulations;

() ‘The Legal and Legistative Service shall provide the Department with services on legal affairs
such as, but not limited to, contract preparation and review, legal and legislative research, complaints and
investigation on employees, legal counselling and other matters of law;


(g) The Comptrollership and Financial Management Service shall provide the Department with
coordinated services relating to financial systems and procedures, budget, cash, accounting and all
financial housekeeping matters;

(h) Internal Audit Service shall regularly conduct a comprehensive audit of various Department activities;

(i) The Public Affairs Service shall enhance goverment relations with all stakeholders including the
media and shall ensure that stakeholders and marginalized sectors shall be consulted and can take active
part in all aspects of water resources development and management activities.

‘The Bureaus and Services of the Department shall be headed by a Director who shall be responsible for
efficiently and effectively camying out the functions of the Bureau concemed. Each Director shall be
assisted by one (1) Assistant Director.

Sec. 21. The Water Resources Regional Offices. - Water Resources Regional Offices, herein
after referred to as the Regional Offices, shall be organized per water resources region and shall be
responsible for implementing the mandates, powers, and duties of the Department atthe field level, except
for policymaking which will be vested solely in the Department.

‘The Department shall establish the water resources regions which shall be grouped together
according to the hydrological boundaries, physiographic features, and homogeneity in climate, whether
or not they straddle different LGUs.

‘The Regional Offices shall have, within their respective water resources region, the following
functions:

(a) Formulate or update and coordinate the river basin master plans for river basins within its
jurisdictions consistent with the NWRMP;

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

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

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

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

() Coordinate with other departments, LGUs, agencies, institutions and organizations within the
region in the planning and implementation of the river basin master plans:

(@) Conduct continuing consultations with the local communities, take appropriate measures to make
the services of the Department responsive to the Central Office, and recommend such appropriate actions
as may be necessary; and

(h) Perform such functions and activities, as may be mandated by law, which are necessary for the


effective performance of the abovementioned objectives.

Each regional office shall be headed by a Regional Director who shall be responsible for
efficiently and effectively carrying out the duties and responsibilities of the office. The Regional Director
shall be assisted by one (1) Assistant Regional Director. The Regional Directors and Assistant Regional
Directors shall be appointed by the President.

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

Sec. 22. Structure and Staffing Pattern. - Subject to the approval of the of Budget and
Management (DBM), the Secretary shall determine the organizational structure and create new divisions
or units as may be necessary and appoint officers and employees of the Department in accordance with
the civil service laws, rules and regulations. The remuneration structure of the position in the staffing
pattem shall strictly conform to Republic Act No. 11466, otherwise known as the "Salary Standardization
Law of 2019", as amended.

CHAPTER II
SOCIALIZED CREDIT FOR LOCAL WATER SERVICE PROVIDERS

See. 23. Socialized Credit Program. - Socialized credit shall be made available, through the Land
Bank of the Philippines (LBP), for capital expenditures necessary for the maintenance, addition,
expansion, or improvement ofthe services of the water service providers, such as but not limited to, capital
expenditure for water distribution, water conservation, water treatment, water sanitation, water testing,
and other related activities and ancillary services: Provided, That the loans shall be available to water
service providers duly registered with the Department: Provided, further, That no loan shall be granted for
the purpose of funding operational costs or expenses.

Sec. 24. Committee on the Socialized Credit Program. - The Committee on the Socialized Credit
Program (SCP), hereinafter referred to as the Committee, is hereby created. The Committee shall be
composed of a representative of LBP as Chairperson and a representative of the Department as Vice-
Chairperson, both of which should hold at least a director position, and four (4) additional members which
shall be equally shared between the Department and LBP, who shall possess the necessary training and
experience necessary for the Committee. The Committee shall directly report to the Secretary of the
Department.

‘The Committee shall exercise the following functions:

(a) Recommend the lending policies such as, but not limited to, the criteria of eligible borrowers,
eligible loan purpose, interest rate, fees and charges, collateral, guarantee, insurance, and other forms of
security, and other terms and conditions of the credit facility;

(b) Review the policies, and procedures, and formulate policies for the SCP;

(©) Monitor the process and performance of the SCP;

(@) Monitor the fund disbursements;

(©) Acton issues or concems relative to the implementation of SCP:

() Conduct SCP performance evaluation; and

(2) Exchange credit information with LBP, LWUA, and other relevant agencies.

‘The SCP shall prioritize the following target beneficiaries:


(@) Water Districts and LGU-run utilities in the Missionary Water Area;

(6) Water Districts with low credit rating; and

(©) _Other priority Water Districts or eligible projects of the Water District to be identified by the
Committee,

Generally, local water service providers with existing Public-Private Partnership Projects
including joint venture arrangements are not eligible to the SCP.

‘All recommendations of the Committee shall be jointly approved by the Secretary and the Board
of the LBP: Provided, That the existing rules, regulations, and policies of LBP shall gover all
implementation activities of the SCP, such as but not limited to, credit and background investigation and
Joan documentation, evaluation, award, negotiation, collection, and restructuring: Provided, further, That
the LBP and the Department shall exchange relevant information to assess the eligibility of the water
service providers to be a recipient of a grant or subsidy.

Relevant information may include, but is not limited to, credit standing, existing loan obligations,
and compliance with previous or existing loan covenants.

The IRR shall provide other functions of the Committee that are necessary for the effective
implementation of the SCP, including the creation of sub-committees, their composition and delegated
functions.

Other Government Financial Institutions, such as, but not limited to, Development Bank of the
Philippines, may provide a similar SCP for water service providers: Provided, That these other GFis shall
submit monitoring reports to the Department thru the Committee.

Sec. 25. Support Program for Local Water Service Providers. - The Department, the
Department of Finance, and the Department of Budget and Management shall issue guidelines in the
disbursement of any grant, from any sources, and subsidy from the National Govemment: Provided, That
the Department shall be the implementing agency for this purpose. Provided, further, That all income
derived from the lending activities shall be recorded as LBP’s income.

CHAPTER IV
THE NATIONAL WATER SECTOR POLICY COUNCIL

‘Sec. 26. Creation of the National Water Sector Policy Council. - There is hereby established a
‘National Water Sector Policy Council (NWSPC), hereinafter referred to as the Council, which shall
exercise policymaking, coordination, harmonization, integration, supervision, monitoring and evaluation
functions with regard to water, land, subsurface, air, and other natural resources. The Council shall be
composed of the following members:

(a) Secretary of the Department of Water Resources as Chairperson:

(b) Director-General of the National Economic and Development Authority as
the Vice-Chairperson;

(©) Secretary of the Department of Health (DOH):

(d) Secretary of the Department of the Interior and Local Goverment
(ILG);

(©) Secretary of the Department of Energy (DOE);

() Secretary of the Department of Agriculture (DA),

(g) Secretary of the Department of Social Welfare and Development


(DSWD);

(bh) Secretary of the Department of Public Works and Highways (DPWH);

(i) Secretary of the Department of Budget and Management (DBM):

() Secretary of the Department of Environment and Natural Resources
(DENR),

(k) Representative from the Office of the President (OP); and

() Chairperson of the National Commission on Indigenous Peoples (NCIP)
as members.

‘The Staff of the Department shall serve as Secretariat to the Council.
‘Sec. 27. Powers and Functions. - The powers and functions of the Council shall be as follows:

(a) Ensure harmonization of all policies involving water, land, subsurface, air and other resources
which are connected to the water sector;

(6) _Ensureamulti-stakeholder participation in the development, updating, and sharing of information
system as policy, planning and decision-making tools; and

(©) Recommend the integration of harmonized policies and priority programs in the National Water
Resources Management Plan and the National and Regional Septage Management Plan.

(CHAPTER V
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DWR

See. 28. Interface And Institutional Arrangements with Other Agencies. -

(@) The Department of Environment and Natural Resources (DENR) shall continue to have primary
authority and responsibility for protecting the environment and managing the country's watersheds. The
Pollution Adjudication Board shall remain to have jurisdiction with respect to adjudication of pollution
cases based on exceedance of the DENR Effluent Standards and other acts defined as prohibited under
Section 27 of R.A. No. 9275: Provided, That the Department shall coordinate with the DENR regarding
the establishment of protocols for management of all water-related data being collected by the DENR;

(b) The Department of Health (DOH) shall continue to have primary authority and responsibility for
setting and enforcing drinking water qualitystandards: Provided, That the Department and the Water
Regulatory Commission shall coordinate with the DOH in this aspect, and shall ensure consistency of
standards and targets, as well as the compliance of licensees with mandated standards;

(©) The Department of Energy (DOE) and the National Power Corporation (NPC) shall continue to
have primary authority and responsibility for setting up and running hydropower plants: Provided, That
all hydropowerplant development plans shall be consistent with the NWRMP;

(4) The Department shall coordinate with the Department of Agriculture (DA) to promote
agricultural development that reduces sources of long-term pollution for surface water and groundwater,
and agricultural and industrial economic development that employs water efficiency, water recycling or
reuse and the appropriate treatment of wastewater: Provided, That the Department shall coordinate with
the DA and its Bureau of Soils and Water Management (BSWM) regarding the establishment of protocols
for management of all water-related data being collected by the DA, as well as the outputs of research and


studies by BSWM which may serve as input to policy formulation by the Department;

(c) The Department shall coordinate with the Department of Public Works and Highways (DPWH)
in setting the policies and preparing the master plans for bulk water transmission, pipe networks, and
related water delivery infrastructures as well as flood control and drainage management, and other related
projects under the DPWH: Provided, That the DPWH shall continue to have primary responsibility in the
construction and implementation of water delivery infrastructures and flood control projects: Provided,
further, That flood management plans are aligned with the NWRMP and flood waters be considered and
hamessed as potential water source: Provided, finally, That the Department shall coordinate with the
DPWH regarding the establishment of protocols for management of all water-related data being collected
by the DPWH and its Bureaus;

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

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

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

() The Department shall coordinate with the Tourism Infrastructure and Enterprise Zone Authority
(TIEZA), Philippine Reclamation Authority (PRA), and economic zone authorities on water resources
development and water requirements within tourist zones, reclamation areas and economic zones,
respectively;

() The Department shall coordinate with the Bangsamoro Autonomous Region in Muslim
Mindanao (BARMM), specifically its Economic and Development Council, Disaster Risk Reduction and
Management Council, and Ministry of Environment, Natural Resources and Energy, regarding the
preparation of master plans of river basins that overlap with the inland waters within the BARMM's
jurisdiction, and ensure the alignment of these plans with the NWRMP, Bangsamoro Development Plan,
and other related regional plans of BARMM:

(k) The Departmentshall coordinate with the Department of Human Settlements and Urban
Development in planning, monitoring and enforcing integrated land use and water resources management
in the Comprehensive Land Use Development Plans and Zoning Ordinances of the LGUs to ensure,
among others, the protection of water sources and that water availability is factored in proposed land use
development plans and projects; and

(1) The Department shall coordinate with relevant govemment agencies, including LGUs, with
respect to development projects and to ensure cross-cutting collaboration between and among all water
subsectors and facilitate inter-agency subsector coordination, strategic development, planning, monitoring
and provision of technical, institutional and financial capacity building support to their different
stakeholders at the water subsector level.


CHAPTER VI
WATER REGULATORY COMMISSION

Sec. 29, Establishment. - 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. The Commission shall have a Board of Commissioners, and shall be vested with powers
and functions, as conferred and set forth hereunder.

Sec. 30. The Central and Regulatory Units. - The Regulatory Units of the Commission shall be
composed of the Regional Regulatory Units and the Central Regulatory Unit.

The economic regulatory units and functions of the MWSS, NWRB, and LWUA are hereby
transferred to the Commission, and shall collectively comprise its Central Regulatory Unit for Water
Supply, Sanitation and Sewerage Services that: (a) provide services to more than one province; and (b)
are owned, operated, or maintained by Metro Manila concessionaires.

The Regional Regulatory Units shall be established by the Commission in accordance with the
ules, regulations, guidelines, and standards that the Commission shall issue, and as provided in this Act.

Sec. 31. 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 water supply, including suppliers to subdivisions, bulk water suppliers, and other
providers for sewerage, and 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) Issue licenses authorizing the operation of water supply, sanitation, and sewerage services in
any specified area or areas within the Philippines;

(©) Issue rules and regulations on terms and conditions prescribing minimum and mandatory terms
for concession agreements, joint venture agreements, management agreements, service contracts or
other contractual arrangements that may be entered into by goverment entities including local water
utilities, LGUs, private sector entities, or other water service providers for the provision of water,
sanitation, or sewerage services, such as, but not limited to the (i) the term, scope and total cost of the
activity, which may be subdivided into phases; (ii) committed contributions and corresponding
performance security requirements in accordance with any agreed phased implementation of the activity;
and (iii) cost recovery schemes and percentage of the parties’ share in the profits and losses, among others;
(d) Require the review 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 when public interest
so dictates;

(e) Set, regulate, review, and monitor the tariffs, rates, charges, and fees for the use of water resources
in the Philippines, including irrigation service fees, bulk water rates, and septage rates, which may be
delegated to the Regulatory Units;

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

(When the facts and circumstances on the strength of which the license was issued have
been materially misrepresented or have materially changed;


(i) 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 targets, including but not
limited to service expansions, that may have been set in the license;

(ii) Where the licensee is found to be manifestly inefficient in the operation of or provision
of water supply, sanitation, and sewerage 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 oany provision of this Act;

(@) — Promulgate and enforce just and reasonable technical standards, classifications and
‘measurements of service;
Enforce technical, financial, and other performance standards set by the Commission for licensees

ies;
(i) Conduct benchmarking and monitor the performance of licensees or utilities under their
jurisdiction, and publish reports detailing the results thereof;

() Coordinate —_with the Philippine Competition Commission (PCC) by providing technical
support in the PCC's exercise of authority and jurisdiction to establish rules and enforce regulations to
monitor, investigate, provide remedies for, and deliberate on cases involving any market power abuse or
anti-competitive or discriminatory act or behavior by or against any participant in the water supply,
sanitation, and sewerage sector. Without prejudice to the actions that the Philippine Competition
Commission, pursuant to Republic Act No. 10667, may undertake on its own, the Water Regulatory
Commission may be directed by the Philippine Competition Commission, upon finding that a market
participant has engaged in, or fell victim to such act or behavior, to stop or redress the same within the
functions and powers granted to the Water Regulatory Commission under this Act;

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

(1) Require the submission of plans, reports on finances and operations, performance targets, and
accomplishments verified under oaths by the owner or president and secretary of the licensee;

(m) Determine and require the monitoring and submission of such data, statistics, and other
information from any or all licensees as may be necessary for the effective and efficient exercise of its
duties, functions, powers and responsibilities: Provided, That such data, statistics, and other information
shall also be submitted to the Department for integration in the centralized database on water resources;
(n) __ Fixand determine proper and adequate rates of depreciation of properties and equipment used in
water supply, sanitation, and sewerage services;

(0) Impose and collect annual levies and reasonable fees and surcharges as may be necessary for
achieving the purposes, powers, and functions of the Commission: Provided, That the rate of annual levies
and fees shall be determined strictly on a cost recovery basis for the reasonable and actual cost of
regulation in accordance with applicable rules and regulations on the imposition and increase of charges;
(p) _ Investigate, motu proprio or upon complaint in writing, any matter concerning the operation of
the service and violations of this Act;

(q@) Respond to consumer complaints and ensure the adequate promotion of consumer interests and
investigate motu proprio violations;

(©) 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;

(8) Impose penalties and fines, which may include, but is not limited to, rebates, refunds, and credits
to affected consumers, 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;


(u) 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;

(v) Advise, apprise, and coordinate with the Department, the National Water Sector Policy Council,
and other relevant agencies of the national or local government on any matter relating to water supply,
sanitation, and sewerage services;

(w) _ Deputize any official or agency of the govemment to assist in the performance of any of the
powers and functions of the Commission;

(x) Appoint, hire, and maintain the Central and Regional Regulators, adequate staff and personnel,
advisers, and consultants, with suitable qualifications and experience, as necessary, subject to existing civil
service laws, rules, and regulations;

(y) __ 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, sanitation, and sewerage services; and

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

Sec. 32. 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 appointed by the President of the Philippines. All
‘members of the Commission must be citizens and residents of the Philippines, atleast hirty-five (35) years
of age, and of good moral character, 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 atleast ten (10) years of
experience in the active practice of law, atleast one (I) shall be a certified public accountant with at least
ten (10) years of experience in active practice; and at least one (1) shall be a licensed engineer with atleast
ten (10) years of experience in the water supply, sewerage, or septage management sector,

(6) The term of office of each member of the Commission shall be seven (7) years: Provided,
‘That among the members first appointed, the Chairperson shall serve for 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
filla vacancy in the Commission arising from death.removal, retirement or resignation shall be made only
for the unexpired term: Provided, finally, That in no case shall any member serve for more

than seven (7) years in the Commission.

(©) 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 the exercise of its quasi-
legislative functions, an affirmative vote of three (3) members shall be required.

(4) The Chairperson of the Commission shall exercise general executive control and supervision of
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 submit for the approval by the President of the Philippines the new organizational
structure and personnel positions necessary to carry out the powers and functions of the Commission,
subject tothe review and approval of the DBM. The personnel positions of the Commission shall be filled
by regular appointments in accordance with civil service laws, rules, and regulations.

(©) Members of the Commission shall enjoy security of tenure and shall not be suspended or removed
from office except for just cause as specified by law.

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

Sec. 33. Secretariat of the Commission. - The Commission shall establish a Secretariat which
shall provide the Commission with technical and support services such as, but not limited to the following:

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

(6) Coordinate with, monitor, and assess the activities of the Regulatory Units to ensure proper
implementation of the rules, regulations, and guidelines promulgated by the Commission;

(c) Maintain a database on the water supply, sanitation, and sewerage subsector; and

(d) Coordinate —_ with other relevant agencies of the national or local goverment on any matter
relating to water supply, sanitation, and sewerage.

Sec. 34. The Commission Secretariat - The Executive Director shall head the Commission
Secretariat, keep and maintain the official records, and report of the proceedings of the Commission, and
administer oaths in all matters falling within the jurisdiction of the Commission.

‘The Commission shall appoint, fix the compensation, and determine the status, qualifications,
and duties of the Executive Director and the Secretariat staff subject to civil service laws, rules, and
regulations. The Executive Director shall have at least ten (10) years of experience 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. The members of the
technical staff, except those performing purely clerical functions, shall possess at least a Bachelor's Degree
inany of the following lines of specialization: law, public administration, economics, finance, engineering,
accounting, or management.

‘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 other members of the Commission.

Sec. 38. Enhancement of Technical Competence. - The Commission shall establish rigorous
training programs for its staff for the purpose of enhancing the technical competence of the Commission
in the following areas: evaluation of technical performance and monitoring compliance with service and
performance standards, performance-based rate-setting reform, environmental standards, and such other
areas as will enable the Commission to adequately perform its duties and functions.


‘Sec. 36. Compensation and Other Emoluments. - The compensation of the members of the
‘Commission and its staff shall be exempted from the coverage of Republic Act. No. 11466, otherwise
known as the "Salary Standardization Law of 2019", as amended. For this purpose, the schedule of
compensation of the Commission shall be submitted for approval of the President of the Philippines. The
compensation schedule of the Commission shall be implemented within six (6) months from the
effectivity of this Act and maybe upgraded by the President of the Philippines as the need arises: Provided,
‘That in no case shall the compensation of the Commission and its staff be upgraded more than once a
year: Provided, further, That pertinent civil service laws, rules, and regulations shall be applicable to the
Commission.

‘The Chairperson and members of the Commission shall initially be entitled to the same salaries,
allowances and benefits as those of the Presiding Justice and Associate Justices of the Court of Appeals,
respectively.

CHAPTER VII
REGISTRATION AND LICENSING

Sec. 37. Registration and Licensing of All Water Supply Sanitation, and Sewerage Services. -
Al water supply, sanitation, and sewerage service providers, including bulk water suppliers and those
providing services to subdivisions and other service providers, shall register with the Commission and,
subject to its rules, guidelines, procedures and other issuances of the Commission, obtain a license to
operate from the appropriate regulatory units: Provided, That the Commission shall act on the application
for the issuance or the conversion of such licenses and renewals thereof within the maximum period of
cone (1) year as provided under this Act or by Republic Act No. 11032, otherwise known as the "Ease of
Doing Business and Efficient Government Service Delivery Act of 2018".

‘The Commission shall also ensure thatthe 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.

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

All local water utilities, existing water service providers, or holders of CPCN or CoC shall be
duly prioritized in the issuance of the licenses to operate over the areas where they currently operate or as
may be covered by their franchises. The submission of the CPC, CPCN, provisional authority, or the CoC
shall be sufficient basis for the issuance of the new and converted or updated licenses to operate required
and contemplated under this Act. To ensure continuity of service, the Commission shall complete the
issuance of such converted or updated licenses not later than six (6) months from the effectivity of the
implementing rules and regulations issued by the Commission pursuant to this Act.

Unless otherwise provided in this Act or by the Commission, no public water supply, sanitation,
and sewerage service provider shall commence or conduct the business of providing water supply,
sewerage, 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 invalidated by the Commission, after due notice and hearing, where
national security, national emengency, or public interest so dictates.

See. 38. Conditions of license. - The Commission may impose such conditions in the issued
license, as it may deem necessary, such as, but not limited to:

(a) ‘Tariffs, rates, and charges that may be imposed from its customers or consumers;
(b) Term fixing the duration of the privilege;

(c) Grounds for modification, suspension, or cancellation of the license;

@ Minimum technical performance and service level standards, such as but

not limited to:

(iii) connections;
(iv) sewerage discharge, billing, and metering requirements, and
(v) sanctions for failure to comply with the standards set;
(©) Expansion targets and service level improvements over time;
(f) Restrictions or conditions for transferability of the business or controlling interest in the business;
(@) __Reportorial requirements and obligations of the grantee; and
(h) Submission to annual performance audit by the Commission or its duly authorized representative.

Sec. 39. Rights and Duties of Licensees. —

(a) Any person granted a license under this Act or with existing rights under concession agreements
and related agreements shall have the obligation to ensure that licensed activities are conducted to further
public interest and, in particular:
@ Foster the maintenance and development of efficient, coordinated, and viable operation
of their licensed activities;
(ii) Ensure that their water supply, sanitation, and sewerage 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, sanitation, and sewerage industry;
(iii) Comply with drinking water quality requirements and standards that may be established
by the Commission, Department, and DOH; and
(iv) Ensure that provision of services shall not be discontinued without notice to, and approval
by, the Commission.

(6) 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 mains, and other relevant
facilites in public ways to fulfill the terms and conditions under the license;

(©) ‘Subject to any condition or limitation laid down in the license, a licensee may discontinue water
supply, sanitation, and sewerage services toa 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";

(@ Any license issued under this Act shall contain provisions designed to ensure that licensees:
() Publish the Tariff. and other charges approved by and the terms and conditions imposed
by the Commission for the provision of water supply, sanitation, and sewerage services;

(i) 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:

(@) Metering, billing, and collection of the licensee's approved tariff and other
charges;
(6) Disconnection or suspension of service in case of non- payment of tarifls and
other charges, or acts of pilferage; and

(©) Recommendation and recovery of arrears in tariffs and other charges.

(ii) 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.

Sec. 40, Setting Tariffs, Rates and Other Charges. - The Commission shall establish tariffs, rates
and other charges which are fair and reasonable, and ensure environmental sustainability, economic
viability, and a fair retum on investments.

Service providers may apply for the setting of tariff, rates, and changes based on and consistent
with a scientific and evidence-based 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 retum on capital;

(b) Efficiency of the service;

© Incentives for enhancement of efficiency;

@ Capacity to pay of consumers;

© i
10)
(g)
(hb) _Incases involving valid and subsisting concession agreements prior to the enactment of
this Act, the methodology provided under the concession agreement;

@ To the fullest extent practicable, the terms and conditions of the tariffs, rates or other
price-setting mechanisms set forth in any concession agreement, joint venture agreement or other
similar agreement for the provision of water or sanitation services by an existing service provider.

Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid and reasonable
unless invalidated by the Commission, after due notice and hearing, acting on a protest or contest duly
filed with the Commission to ensure continuity of service, application for setting of tarffS, rates and other
charges shall be decided within a non-extendible period of ninety (90) days from the date of filing thereof,
and the failure of the Commission to act on any such applications shall result in a provisional approval:
Provided, That in no case shall proceedings on any applications for the setting of tariffs, rates and other
changes exceed to a total period of one hundred twenty (120) days reckoned from the date of filing of the
application.

See. 41. Direct Access. - Fifty-one percent (51%) of the registered water consumers in a service
area, municipality, city or province may petition for direct access to water from any water service provider
subject to concurrence by and reasonable compensation to the service provider and approval by the
Commission. If the petition for direct access from any water service provider is approved by the
Commission, the new water service provider shall reimburse the existing service provider for, as


applicable, either the book value or the market value as determined by an independent appraiser accredited
by the Commission, whichever is higher, of the water source, water supply, or water distribution or
transmission facilities, pipelines and other equipment which shall be transferred to or utilized by the new
water service provider. The Commission shall promulgate the implementing rules and procedures for this
mode of service, which shall include, among others, financial and technical capability of the new service
provider.

Sec. 42. Innovative Schemes to Improve Efficiency and Management of Systems. - The
Commission shall promote innovative schemes such as the consolidation or integration of water supply,
sanitation, and sewerage 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 performance-based and time-bound 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 VII
PROCEEDINGS BEFORE THE COMMISSION

Sec. 43, Proceedings Before the Commission. - For the purpose of any investigation, inquiry,
or proceeding, the Commission shall:

(2) Issue subpoena duces tecum and subpoena ad testificandum:;,

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

Commission;

(©) _Cite any person or party for contempt for refusal to appear, testify or comply with an order of the
Commission on any matter that is the subject of investigation, inquiry or proceeding before the
Commission.

Sec. 44. 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.

See. 45. Appeals Procedure. - 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.

Sec. 46. Prohibition Against Injunctions. - Except for the Supreme Court, no temporary
restraining order, preliminary injunction, or preliminary mandatory injunction may be issued by any court
to restrain any proceeding before, or the implementation or execution of any order, ruling, or decision of
the Commission.


CHAPTER IX
TRANSITORY PROVISIONS I

Sec. 47. Transition Period. - The Department shall, by virtue of this Act be subrogated to all the
rights and assume all the functions of the goverment agencies and units whose powers and functions
have been subsumed, absorbed, transferred or attached to the Department. The Commission shall also, by
virtue of this Act, be subrogated to all the rights, and assume all the functions, of the Water Utilities
Division of the NWRB, the regulatory offices of MWSS and LWUA, and all other government agencies.
and units whose powers and functions have been transferred to the Commission in accordance with the
civil service laws, rules, and regulations.

The transfer of powers and functions to the Department or the Commission of the concerned
agencies as herein provided for, shall be deemed completed within six (6) months after the effectivity of
this Act.

Al agencies transferred, subsumed and attached to the Department or the Commission, shall
continue to function under their present mandates until the six- month transition period mandated under
this Act shall have lapsed. The transfer of powers and functions shall include all applicable funds,
personnel, records, property and equipment, as may be necessary. The heads of the affected agencies shall
continue to serve until replaced.

All rights and functions of the affected agencies are hereby transferred to and assumed by the
Department or 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. 48. Absorption or Separation from Service of Employees of the Subrogated Agencies. -
The current employees of all government agencies and units whose powers and functions have been
transferred to, absorbed or subsumed by the Department or Commission shall enjoy security of tenure, in
accordance with their staffing pattem and the selection process as prescribed under Republic Act No. 6656
or the "Goverment Reorganization Law’.

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

CHAPTER X
FINAL PROVISIONS

Sec. 49. Applicability of Ease of Doing Business Law. - The prescribed processing time provided
under Section 9(b) of Republic Act No. 11032 shall be applicable to all agencies and LGUs covered under
this Act particularly on accessing government services.

See. 50. Appropriations. -The amount necessary for the initial implementation of this Act shall
be changed against the current year's appropriations of the agencies, entities, divisions, sections or units
subsumed or transferred to the Department. Thereafter, such amount shall be included in the annual
General Appropriations Act.

Sec. 51. Implementing Rules and Regulations. - Upon the effectivity of this Act, the Department
and the Commission, as may be applicable, as well as NEDA, DBM, DENR, CSC, and the National


Commission on Indigenous Peoples in consultation with concemed govemment agencies shall
promulgate the implementing rules and regulations (IRR) of the Department and the Commission
necessary for the effective implementation of this Act within one hundred eighty (180) days afler its
effectivity.

See. 52. 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. 53. Repealing Clause ~
(a) The following are hereby repealed:

(i) Section 3 (h) and Section 12 on the fixing of water rates and sanitation service fees,
Section 3 (n) on regulation of waterworks and deep wells, and Section 3 (p) on the
regulation of waterworks and sanitation systems in privately owned subdivisions of
Republic Act No. 6234;

(ii) Section 62 on regulation and Section 63 on rate review 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-A, series of 1987 -
"Reorganization Act of the Ministry of Public Works and Highways", and Executive
Order No. 123, 30 January 1987 - "Reorganization Act of Ministry of Social Services
and Development";

(iii) Executive Order No. 22, series of 2023, creating the Water Resources Management
Office of the DENR; and

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

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

See. 54, Effectivity,- This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,