Republic of the Philippines * RECEIVED”
18 Aug

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

3819

House Bill No. “~~

INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO
AND JOCELYN P. TULFO

AN ACT
ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY, PROMOTING
STEWARDSHIP AND SUSTAINABLE DEVELOPMENT OF COASTAL AND
MARINE ECOSYSTEMS AND RESOURCES, REORGANIZING AND
RENAMING THE NATIONAL COAST WATCH SYSTEM AS THE NATIONAL
MARITIME MONITORING SYSTEM, AND PROVIDING FUNDS THEREFOR

EXPLANATORY NOTE

Article XII, Section 2 of the 1987 Constitution provides that the State shall
protect the nation’s marine wealth in its archipelagic waters, territorial sea, and
exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino
citizens.

Likewise, the Supreme Court in the case of Resident Mammals of the Protected
Seascape Taiion Strait v. Secretary Reyes, et al. (2015) reiterated the principle that
“humans are stewards of nature”, a doctrine that was first enunciated in the landmark
case of Oposa v. Factoran (1993), insofar as it refers to minors and generations yet
unborn. In Oposa, the Court stated that every generation has a responsibility to the
next to preserve the rhythm and harmony for the full enjoyment of a balanced and
healthful ecology, echoing the constitutional mandate enshrined under Article II,
Section 16.

By adopting a whole-of-nation approach and a comprehensive framework for
the stewardship of our seas and coasts, this bill seeks to develop, manage, protect, and
preserve our marine ecosystems and coastal resources in a sustainable, inclusive, and
resilient manner for the benefit of our present and future generations.

In view of the foregoing, the urgent passing of this bill is earnestly sought.


Va

RALPH WENDEL P. TULFO JOCELWN pf ‘0
Representative Representative
2u District of Quezon City ACT-CIS Partylist


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

‘TWENTIETH CONGRESS
First Regular Session

House Bill No. 3819

INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO
AND JOCELYN P. TULFO

AN ACT
ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY, PROMOTING
STEWARDSHIP AND SUSTAINABLE DEVELOPMENT OF COASTAL AND
MARINE ECOSYSTEMS AND RESOURCES, REORGANIZING AND
RENAMING THE NATIONAL COAST WATCH SYSTEM AS THE NATIONAL
MARITIME MONITORING SYSTEM, AND PROVIDING FUNDS THEREFOR

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “Blue Economy Act.”
SEC. 2. Declaration of Policy. - It shall be the policy of the State to:

(1) Adopt blue economy as a framework for equitable and sustainable
development and safe use of marine wealth within our maritime zones,
asa pillar of our national economy and patrimony;

(2) Exercise stewardship of seas and coasts, and protect and conserve the
health and resilience of marine and coastal ecosystem and habitats,
through strong institutional mechanisms for maritime monitoring and
regulatory, enforcement, to promote the well-being, prosperity and
security of present and future generations;

(@) Preserve our maritime heritage, recognize the social, cultural, and
historical value of our seas and coasts, and foster public understanding
and respect of value of our seas and coasts to build a strong foundation
for social responsibility;


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(4) Enrich scientific understanding of marine and coastal ecosystems, the
benefits we gain from these ecosystems like carbon sequestration, their
changing conditions and the causes thereof, and use best available
scientific knowledge to inform decisions affecting maritime
environment;

(6) Foster international cooperation and multi-stakeholder engagement,
and exercise rights and jurisdiction in accordance with applicable
international laws, including on freedom of navigation;

(6) Ensure a whole-of-nation approach and a comprehensive, integrated
framework for the stewardship of our seas and coasts to facilitate
cohesive action of the national government, local authorities, academe,
nongovernmental organizations, the private sector, and the public; and

(7) Promote, support, and monitor science, technology and innovation
programs of public and private academic and research institution to
strengthen interdisciplinary research in marine science, and to develop
emerging technologies to catalyze growth new maritime sectors.

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

(a) Aquaculture refers to fishery operations involving all forms of raising
and culturing fish and other fishery species in fresh, brackish, and
marine water areas;

(b) Aquasilviculture refers to a multi-purpose production system that allows
production of fish and other aquatic species in a mangrove reforestation
project;

(©) Aquatic resources refers to fish and other living resources of the aquatic
environment that have or will have commercial value when utilized;

(d) Blue economy refers to the integrated, holistic, cross-sectorial, and cross-
stakeholder approach for the sustainable resilient and inclusive use,
governance, management and conservation of oceans, seas as well as
marine and coastal resources and ecosystem for economic growth
leveraging, green infrastructure and technologies innovative financing
mechanisms and proactive institutional mechanisms, and improving
human well-being and social equity, and reducing environmental risks
and ecological scarcities;


(e) Blue carbon refers to organic carbon that is captured by marine and coasts
ecosystems, such as algae, seagrass, mangroves, and other plants
growing in salt marshes and coastal wetland;

(8) Blue public expenditure refers to public expenditures that address issues
related to coastal and marine resources, environmental degradation,
and development aspirations that depend on marine resources and
environments;

(g) By-catch refers to fish or other marine species that a fisher does not
intend to catch, including juveniles of commercially- valuable species
and biologically-important species caught. unintentionally while trying
to catch a certain type of fish;

(h) Commercial fishing refers to the taking of fishery species by passive or
active gear for trade, business and profit beyond subsistence or sports
fishing, to be further classified as: small scale commercial fishing, or
fishing with passive or active gear utilizing fishing vessels of three and
one-tenth (3.1) gross tons (GT) up to twenty (20) GT; medium scale
commercial fishing or fishing utilizing active gear and vessels of twenty
and one-tenth (20.1) GT up to one hundred fifty (150) GT; and large
commercial fishing or fishing utilizing active gear and vessels of more
than one hundred fifty (150) GT;

(

Contiguous zone refers to the contiguous zone of the Philippines to the
waters beyond and adjacent to its territorial sea and up to the extent of
twenty-four (24) nautical miles from the baselines from which the
breadth of the territorial seas is measured;

0

Continental shelf refers to the seabed and subsoil of the submarine areas
of the Philippines that extend beyond its territorial sea throughout the
natural prolongation of its land territory to the outer edge of the
continental margin, or to a distance of two hundred (200) nautical miles
from the baseline from which the breadth of the territorial sea is
measured, where the outer edge of the continental margin does not
extend up to that distances;

(k) Ecosystem services refers to the flow of benefits which human gain from
ecosystems, through biological processes and climate, hydrological and
biochemical cycles, and experiences that contribute to intangible culture;

() Environmental-economic accounts refers to a systematic way to measure
and report on stocks and flows of natural assets and resources — both
biotic and abiotic, renewable and non-renewable - and ecosystem


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services, to determine the contribution of the environment to the
economy and the impact of the economy on the environment;

(m)Environmental-economic accounts refer to statistical information, in
physical or monetary terms, about the extraction of natural resources,
their use within the economy, natural resource stock levels, the changes
in those stocks during a specific period, and such other economic
activities relate to the environment;

(n) Exclusive economic zone (EEZ) refers to the waters beyond and adjacent
to its territorial sea and up to the extent of two hundred (200) nautical
miles from the baselines from which the breadth of the territorial sea is
measured, as established by Presidential Decree No. 1599, otherwise
knownas the “Philippine Exclusive Economic Zone of 1978”, and to the
extent consistent with the other provisions of this Act and with the
provisions of the 1982 United Nations Convention on the Law of the Sea
(UNCLOS);

(0) Fisheries refers to all activities relating to the science and act of business
of fishing, culturing, preserving, processing, marketing, developing,
conserving, and managing of aquatic resources, and environment;

(p) Integrated coastal management (ICM) refers to a holistic and integrative
management that incorporates the following components: (1)
connectivity of various ecosystem—environment and resources; (2)
various sectors and shareholders; (3) institutional arrangements that are
relevant; and (4) assessment of drivers of coastal ecosystem degradation,
management planning and implementation, including research and
education, to address coastal degradation and biodiversity losses, and
to improve the well-being of communities in coastal and interconnected
areas;

(q) Integrated Marine and Coastal Area Management (IMCAM) refers to a
participatory process for decision-making to prevent, control, or
mitigate adverse impact from human activities in the marine and coastal
environment, and to the restoration of degraded coastal areas;

(t) Internal waters refer to waters on the landward side of the archipelagic
baselines not forming part of archipelagic waters under Section 4 of this
Act and delineated in accordance with Article 50 of the UNCLOS; and
water on the landward side of the baselines of the territorial sea of
territories outside of the archipelagic baselines, dawn in accordance
with Article 8 of the UNCLOS;


(5) Investment promotion agencies (IPAs) refer to government entities created
by law, executive order, decree or other issuance in charge of promoting
investments, granting and administering tax and non- tax incentives,
and overseeing the operations of the different economic zones and
freeports in accordance with their respective special laws. These include
the Board of Investments (BOI), Bangsamoro Board of Investments,
Philippine Economic Zone Authority, Bases Conversion and
Development Authority, Subic Bay Metropolitan Authority, Clark
Development Corporation, John Hay Management Corporation Poro
Point Management Corporation, Cagayan Economic Zone Authority,
Zamboanga City Special Economic Zone Authority, PHIVIDEC
Industrial Authority, Aurora Pacific Economic Zone and Freeport
Authority, Authority of the Freeport Area of Bataan , Tourism
Infrastructure and Enterprise Zone Authority, and all other similar
existing authorities that may be created by law;

(t) Mariculture refers to the sea farming of aquatic plants and fishes;

(u) Maritime scientific research refers to any research activity, which is
conducted for exclusively peaceful purpose, for the purpose of
increasing scientific knowledge about the marine environment,
including all-natural resources, toward the benefit of mankind and
according to the UNCLOS;

(v) Marine domain awareness refers to the effective understanding of any
activity that could impact upon the security, safety, economy or
environment;

(w) Maritime spatial planning refers to a process by which human activities
in maritime zones are analyzed and organized, based on best available
scientific knowledge, to achieve economic, ecological and social object;

(x) Maritime zones refer to the maritime zones of the Philippines comprising
the internal water, archipelagic waters, territorial sea, contiguous zone,
EEZ, and continental shelf;

(y) Ocean-based activities refer to activities that are undertaken in the ocean,
such as fisheries and aquaculture, offshore oil and gas, mining, ocean
energy, desalination, shipping and marine transportation, marine
tourism, and marine construction;

(2) Ocean-based activities refer to activities that are undertaken in the ocean
such as seafood processing, marine biotechnology, chemicals, salt, and
produce products and services for the ocean and ocean-based activities


such as shipbuilding and repair, ports, tourist resorts, communication,
maritime insurances and law, and maritime technical service;

(aa) Subsistence fishing refers to fishing for personal consumption or
Traditional/ceremonial purposes; and

(bb) Ocean literacy refers to an understanding of the ocean’s influence on
humans and human influence on the ocean.

SEC. 4. Scope of Application. - For purpose of this Act, the Philippines shall
exercise sovereignty, sovereign rights and jurisdiction, in accordance with
commitments under the UNCLOS and other related treaties which the Philippines has
ratified, in internal waters, archipelagic waters, territorial sea, contiguous zone,
exclusive economic zone and continental shelf, herein collectively referred to as
“maritime zones”, including its seabed and subsoil, and any and all maritime features
within the maritime zones and where appropriate, the relevant airspace above the
territorial sea, internal waters and archipelagic waters now known or to be known in
the future.

CHAPTER II
NATIONAL MARITIME MONITORING SYSTEM

SEC. 5. National Maritime Monitoring System. - The National Coast Watch
System, established under Executive Order (EO) No. 57, series of 2011, is hereby
renamed as the National Maritime Monitoring System.

SEC. 6. National Maritime Council. - The National Coast Watch Council,
created under EO 57, series of 2011, is hereby renamed and reconstituted as the Nation
Maritime Council, herein referred to as the “Council”, and its functions expanded to
include the Formulation of an integrated strategy to promote blue economy and
ecosystem-based management of coastal and marine resources.

In addition to the powers and functions of the Council enumerated in Section
3 of the same EO, the Council is likewise further mandated to:

(a) Steer the development, research, and sustainable resource explorations in
maritime zones, especially in areas with high economic potential such as the
Philippine Rise and the West Philippine Sea;

(b) Coordinate the maritime regulation or licensing and law enforcement for
strengthened preparedness and responsiveness to potential security threats
or concerns in the country’s maritime areas and zones; and


(©) Build capacities in monitoring, including the use of digital and innovative
technologies for security and surveillance activities.

The Council is likewise authorized to convene committees or sub- committees
to oversee the abovementioned function. In this way, all strategic maritime zones will
be covered and will reduce the call creation of new bodies or authorities to manage
the same.

SEC. 7. Composition of National Maritime Council. - The Council is composed
of the Executive Secretary as Chairperson and the Secretaries of the following national
agencies as members:

(a) National Economic and Development Authority (NEDA);
(b) Department of Environment and Natural Resources;

(c) Department of National Defense;

(d) Department of Foreign Affairs (DFA);

(e) Department of Justice;

(8) Department of the Interior and local Government;

(g) Department of Agriculture;

(h) Department of Tourism;

(i) Department of Transportation;

(j) Department of Trade and Industry;
(k) Department of Energy;

(1) Department of Science and Technolo;
(m) Department of Finance;

(n) Department of Education (DepEd);
(0) Department of Information and Communications Technology;
(p) National Security Council; and

(q) Bureau of Fisheries and Aquatic Resources.

Department Secretaries may designate an alternative representative, whose
portfolio covers matters directly or principally relating to the development or
management of coastal and marine resources and ecosystem, if applicable. They shall
sit in a permanent capacity, and their acts shall considered the acts of their principals.

SEC. 8. National Maritime Secretariat. - The Coastal Watch Council
Secretariat, established under Section 4 of EO 57, series of 2011, is hereby renamed as
the National Maritime Secretariat and shall continue to provide technical and
administrative support to the Council and perform its functions under the same EO.

SEC. 9. National Maritime Coordination Center - The National Coast Watch
Center, established under Section 5 of EO 57, series of the of 2011, is hereby renamed
as the National Maritime Coordination Center and shall continue to be the operational


support unit of the National Maritime Monitoring System and_ perform its functions
under the same EO.

SEC. 10, Support Agencies. - In order to ensure the efficient and effective
discharge of its responsibilities, in addition to the agencies enumerated under Section
6 of EO 57, series of 2011, the Council may call upon other departments, Bureaus,
offices and instrumentalities of the government, representatives from maritime
industries, and academic and research institutions engaged in marine groups, as it
may deem necessary.

CHAPTER III
POLICY FRAMEWORK ON BLUE ECONOMY

SEC. 11. Policy Framework on Blue Economy - The Council shall, within six (6)
months from the effectivity of this Act, formulate a Policy Framework on Blue
Economy, herein referred to as the Policy Framework. The Policy Framework shall
serve as the basis for marine spatial planning, determination of investments to
develop modern physical infrastructure and build an enabling environment for blue
economy to prosper, and enhance maritime domain awareness, and enforcement of
economic and environmental regulations within our maritime zones. The Policy
Framework shall be subject to mandatory review and modification every five (6)
years.

SEC. 12. Components of the Policy Framework on Blue Economic. - The Policy
Framework shall include the following components:

(a) Review of all existing policies, plan, programs, projections, rules and
regulations on ocean-based and ocean related activities in our maritime
zones, including seafood processing and storage, and commercial research
and development (R&D) activities for biomass resource and fish stock
estimation artificial intelligence for forecasting fish stocks and supply;

(6) Compliance to local and international maritime laws;

() Analysis of current and emerging trends in demography, consumption,
trade, technology and climate that show the interaction between the
economy and the environment, and present threats and pressures on coastal
and marine environments;

(d) Environmental-economic accounting of coastal and marine assets and
resources, and ecosystem goods and services from coastal and marine
environments;

(©) Priority strategic and sustainable ocean-based and ocean-related economic
activities within our maritime zones, which may include the following:
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(1) Fisheries, including commercial fishing, but with preference to
subsistence fisheries, as mandated by Section 7, Article XIII, of the
Constitution;

(2) Aquaculture, mariculture and aqua silviculture and support industries,
including seafood processing and storage, and aquaculture feed milling;

(3) Marine and coastal tourism;

(4) Shipping logistics and maritime transport;

(6) Shipbuilding and ship repair;

(6) Production of renewable energy from marine sources;

(7) Installation of submarine cables and pipelines;

(8) Marine biotechnology and bioprospecting;

(9) Desalination;

(10) Underwater cultural heritage and maritime archaeology; and

(11) Commercial R&D activities and commercialization of new and

emerging technologies developed from locally- undertaken R&D;

() Principles and indicators to guide environmental impact assessment of
ocean-based and ocean-related economic activities, taking into account the
environmental-economic accounting of marine resources and ecosystem
service that will be affected;

(g) Adoption of integrated marine and coastal area management;
(h) Strategies to promote blue finance;

(i) Priority research and development agenda, including development of
innovative technologies, and human capital support the blue economy;

(i) Promotion of ocean literacy and social responsibility towards the protection
of coastal and human marine environments;

(k) Enhancement of capability of the armed Forces of the Philippine and
civilian agencies to enforces laws, rules and regulations to protect our
marine wealth;

(I) Goals, targets and indicators for growth, resilience and sustainability of
priority strategic and sustainable ocean-based an ocean-related activities,
including the contribution to Gross Domestic Product and job creation; and

(m)Such other components as may be determined by the Council as a result of
its periodic review, to ensure that the Policy Framework is continually
updated and adapted to the needs of the times.


CHAPTER IV
COMPLIANCE WITH INTERNATIONAL MARITIME INSTRUCTIONS

SEC. 13. International Maritime Instruments. - The Council shall direct the
Inter-Agency Coordinating Committee, as created under EO No. 159, series of 2021,
to Facilitate the Ratification of/ Accession to and Implementation of Maritime
Conventions (ICCRIMC) to establish mechanisms for the full and effective
implementation and enforcement of the following international maritime instruments
and their subsequent amendment, including, but not limited to the following:

(a) 1982 United Nations Convention on the Law of the Sea;

(b) Convention on the International Trade of Endangered Species of Flora and
Fauna;

(©) United Nations Educational, Scientific and Cultural Organization
(UNESCO) Convention on the Protection of the Underwater Cultural
Heritage;

(d) International Convention for the Safety of Life at Sea, 1974, as amended,
and its Protocol of 1988 (SOLAS 74);

(e) International Convention for the Prevention of Pollution from Ships and its
Protocol of 1978 (MARPOL 73/78);

(8) Convention on the International Regulations for Preventing Collisions at
Sea, 1972, as amended (COLREG 72);

(g) International Convention on Load Lines, 1966 and its Protocol of 1988, as
amended (LL 66);

(h) International Convention on the Tonnage Measurement of Ships, 1969
(TONNAGE 1969);

(i) Convention for the Suppression of Unlawful Acts Against the Safety of
Maritime Navigation, 1988 (SUA) and its Protocol;

(i) International Convention on Oil Pollution Preparedness, Response and Co-
operation 1990 (OPRC 1990);

(k) International Convention for the Control and Management of Ships’ Ballast
Water and Sediments, 2004 (BWM 2004);

() Convention on the Prevention of Marine Pollution by dumping of Wastes
and Other Matter, 1972, as amended, and its 1996 Protocol (LCP);

(m) Special Trade Passenger Ship Agreement, 1971 (STP 71);

(n) Convention on the International Mobile Satellite Organization, as
amended (IMSO 1976) and its Operating Agreement (INMARSAT);

(0) International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, As Amended (STCW 78);

(p) International Convention on the Control of Harmful Anti-Fouling Systems
on Ships, 2001 (AFS 2001);

(q) Protocol of 1992 to Amend the International Convention on Civil Liability
for Oil Pollution Damage, 1971; and

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(*) Protocol of 1992 to amend the International Convention on the
Establishment of an International Fund for Compensation for Oil Pollution
Damage, 1971; and

(s) Other relevant maritime treaties, conventions, or instruments as may be
agreed upon in the future.

SEC. 14. Application. - Unless otherwise indicated, the international
conventions enumerated in the preceding section shall apply to:

(a) All ships, whether seagoing or coastwise, which are registered under the
Philippine flag;

(b) All persons, partnerships, corporations, firms and other entities that engage
in ocean-based or ocean-related enterprise, or those acting on their behalf;
and

(0) All foreign ships that are within the waters, ports, harbors and offshore
terminals of the Philippines regardless of whether or not they are registered
in, or belong to, State Parties to the conventions sought to be implemented
by this Act.

SEC. 15. Reciprocity. - The rights and privileges of foreign vessels and aircraft
in Philippine archipelagic waters herein provided are recognized under conditions of
reciprocity and mutual respect. The President of the Philippines is hereby authorized
to institute countermeasures and other appropriate steps as may be recommended by
the DEA in response to foreign states that do not abide by, or that act inconsistently
with the UNCLOS, or which do not ensure that vessels and aircraft under their
authority comply with their right and obligations under the convention.

CHAPTER V
ENVIRONMENTAL-ECONOMIC ACCOUNTING

SEC. 16, Environmental-Economic Accounting. - The Philippine Statistics
Authority shalll include the environmental-economic accounting of marine ecosystem,
as part of the Philippine ecosystem and natural capital accounting system, in the
generation of the Philippine Ocean economy satellite accounts.

CHAPTER VI
INTERGRATED MARINE AND COASTAL AREA MANAGEMENT

SEC. 17. Integrated Marine and Coastal Area Management. - The
IMCAM shall be framework to address human impacts on marine and coastal
ecosystem, and for promoting its conservation and sustainable use. The Integrated
Coastal Management Framework, principles, and mechanisms shall be aligned and
shall be an integral part of the IMCAM framework to be developed under this Act.

3B


SEC. 18. Elements of the National IMCAM Framework. - The Council shall
develop and implement the National IMCAM Framework within one (1) year from
the effectivity of this Act to provide direction, support and guidance to relevant
member and support agencies local government units and other stakeholders,
according to Elaborated programmed of Work on Marine and Coastal Biological
Diversity contained in the Annex to Decision VII/5 of the Conference of the Parties to
the United Nations Environmental Programme Convention on Biological Diversity.

Accordingly, the National IMCAM Framework shall consider the following
elements:

(a) Build, capacity of stakeholders, in both national and local levels, to apply
relevant policy instruments to address legal issues, institutionalize
participatory processes, and develop strategies to promote
multidisciplinary and multisectoral ecosystem- based management of
coastal and marine environments;

(b) Direct action to protect coastal and marine environments from negative
impacts such as:

(1) Identification, protection, prevention of alternation and destruction,
and restoration of coastal and marine habitats, particularly areas
important for reproduction, inter alia, coral reef system;

(2) Prevention, reduction or control of marine pollution;

(3) Protection of coastal and marine environments from land-based
sources, including proper coastal land use and watershed
management;

(4) Establishment of closed fishing areas, and closed seasons, in
accordance with Republic Act No. 8550, also known as the
“Philippine Fisheries Code of 1998”, as amended by RA 10654; and

(6) Reduction of by-catch;

() Establish mechanisms and guidelines for research, monitoring and
assessment of coastal and marine ecosystems and resources, including
indicators to measure natural and human-induced impacts; and

(d) Establish guideline and mechanisms on green and blue businesses.

CHAPTER VII
PROTECTION AND CONSERVATION OF COASTAL
AND MARINE RESOURCES

SEC. 19. Protection of Endangered Species. - The Council shall spearhead the
conservation, protection and rehabilitation of rare, threatened and endangered
aquatic species as it may determine, including their habitats. It shall recommend to

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the President of the Philippines and Congress the designation of coastal and marine
area as protected areas under the Expanded National Integrated Protected Areas
System or under RA 8550, as amended, and in compliance with the relevant
provisions of international treaties and agreements such as, the Convention on the
International Trade in Endangered Species of Wild Flora and Fauna, the UNCLOS,
and Convention on Biological Diversity.

SEC. 20. Policy Coordination. - The Council shall harmonize rules and
regulations of all relevant agencies responsible for the implementation and
enforcement of laws to prevent and eliminate illegal fishing such as RA 8550, as
amended.

CHAPTER VIII
DEVELOPMENT PLANNING

SEC. 21. Maritime Spatial Planning. - The Council, in consultation with
relevant agencies, regional bodies and local government units (LGU’s), shall
undertake a nationwide maritime spatial planning, guided by the standards of the
Intergovernmental Oceanographic Commission, to identify the spatial and temporal
distribution of priority activities and uses and the interactions thereof in maritime
zones, in order to reduce conflict among use, facilitate complementary use, mitigate
environmental impact, and preserve ecosystem service.

SEC, 22. Industry Development Plan. - The Council, through working groups
created for the purpose, shall prepare five-year and ten-year development plans for
priority strategic and sustainable ocean-based or ocean-related industry, in
accordance with the Policy Framework and in consideration of the existing
development plans and strategies formulated by agencies involved in coastal and
marine production and development. The Council shall also ensure the integration of
the framework in existing industry plans.

SEC. 23. Integration with Area and National Development Plan. - The NEDA
shall integrate the maritime spatial plan and industry development plans into the
Philippine Development Plan, the National Priority Plan, the National Physical
Framework Plan, and Area Spatial Development Framework.

SEC. 24. Inclusion in Strategic Investment Priority Plan. - The Council shall
recommend to the BOI the inclusion of identified priority strategic ocean-based and
ocean-related activities in the Strategic Investment Priority Plan.

SEC. 25. Blue Economic Zones. - Investment Promotion Agencies (IPAs) shall
encourage the establishment of blue economic zones and the transformation of
existing special economic zones into the same: Provided, That Registered Business
Enterprises (RBEs) engaged in ocean-based or ocean-related activities in these blue
economic zones, duly registered by an IPA, may be entitled to the incentives under

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Title XIII (Tax Incentives ) of the National Internal Revenue Code of 1997, as amended.
In addition, the incentives provided under this Act shall be without Prejudice to the
following laws:

(a) RA 9003, otherwise known as the “Ecological Solid Waste Management Act
of 2000";

(b) RA 9275, otherwise known as the “Philippine Clean Water Act of 2004”;

(c) RA 9513, otherwise known as the “Renewable Energy Act of 2008”; and

(d) RA 1771, otherwise known as the “Philippine Green Jobs Act of 2016”.

‘The RBEs operating within blue economic zones may also qualify for financing
provided under RA 11293, otherwise known as the “Philippine Innovation Act”, as
applicable.

CHAPTER IX
BLUE FINANCE

SEC. 26. Role of the Bangko Sentral ng Pilipinas (BSP). - In the exercise of its
regulatory powers over financial institutions, the BSP shall mandate banks and quasi-
banks to adopt the United Nations environment Programme Sustainable Blue
Economy Finance Principles as a foundation of corporate governance and risk
management.

SEC. 27. Role of Securities and Exchange Commission (SEC). - In the SEC shall
encourage the issuance of blue bonds where proceeds will be exclusively applied to
finance or refinance, in part or in full, eligible Blue Economy activities, in accordance
with SEC Guidelines, the Association of Southeast Asian Nations (ASEAN) Green
Bonds Standards and Green Bonds Principles, as developed and may be revised from
time to time by the SEC, ASEAN Capital Markets Forum, and the International Capital
Market Association. respectively. All designated Blue Projects or Activities must
provide clear benefits to ocean health and the blue economy or must contribute
substantially to United Nations Sustainable Development Goals (UN SDG) 6 or 14,
which shall be assessed and, where feasible, quantified by Issuer.

SEC. 30. Marine Scientific Research. - The State recognize marine science as a
foundation of maritime governance, insofar as rules governing the use of coastal and
marine resources must be based on the sound scientific understanding of the marine
environment. In accordance with UNCLOS, the Philippines has the exclusive rights to
regulate, authorize and conduct marine scientific research in our internal waters,
archipelagic waters and territorial sea; whereas, the Philippines has right to regulate,
authorize and conduct maritime scientific research activities shall not unjustifiably
interfere with other legitimate uses of the sea and shall not constitute the legal basis
for any claim to any part of the marine environment its resources. Marine scientific
research by foreign states and competent international organization may only be

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conducted with the express consent of and the conditions set forth by the Council, in
accordance with the UNCLOS.

SEC 31. Marine Technology and Innovation. - The State recognizes that
science, technology and innovation have a critical role in harnessing ocean resources
for the blue economy while ensuring sustainability. Marine Technology and
innovations are needed to address technical and logistical constraints that impede the
development of the Philippine blue industries. Among these technologies are
advanced materials, subsea engineering and technology, sensors and imaging, big
data analytics, autonomous systems, biotechnology, nanotechnology, marine spatial
planning, and circular blue economy. The government shall also support the
development and adoption of locally-developed marine-related technologies.

SEC. 32, Ocean Literacy Framework. - The DepEd, Commission on Higher
Education, Technical Education and Skills Development Authority, and other
government agencies implementing sector-specific literacy programs, in consultation
with relevant members of the Council or support agencies, shall integrate into the
curricula of K-12, the Alternatives Learning System, general education programs of
higher education institutions, technical and vocational education and training, and
other community-based training programs, the essential principles and fundamental
concepts of ocean sciences to develop the following competencies:

(a) Understanding the economic, socio-cultural, spiritual, scientific and
political importance/ significance of the ocean to humankind in general and
the Filipino in particular;

(b) Communication about the ocean in a meaningful way; and

(©) Making informed and responsible decisions regarding the ocean and its
resources.

CHAPTER XI
FREEDOM OF NAVIGATION

SEC. 33. Archipelagic Sea Lanes. - The President of the Philippines shall
designate sea lanes and air routes there above, suitable for the continuous and
expeditious passage of foreign ships and aircrafts through or over the archipelagic
waters and the adjacent territorial sea, and shall, where necessary as regards the safety
of navigation, require foreign ships exercising the right of innocent passage to use
such lanes and traffic separation schemes in accordance with the UNCLOS.


CHAPTER XII
ROLE OF LOCAL GOVERMENTS

SEC. 34. Role of Local Government Unit. - Cities and municipalities shall
continue to exercise jurisdiction over municipal water, pursuant to RA 7160, otherwise
known as the “Local Government Code of 1991”, as amended, and RA 8550, as
amended subject to the jurisdiction and authority of national government agencies as
stated in the provisions of special laws as the case may be. Consistent with this
mandate, LGUs shall act as the frontline agencies in the formulation, planning, and
implementation and enforcement of the law of IMCAM in their respective
jurisdictions. The LGUs shall integrate the National Maritime Spatial Plan in their
Comprehensive Development and Annual Investment Plan.

SEC. 35. Inter-LGU Cooperation. - Consistent with the provision of RA 7160,
as amended, LGUs may group themselves, consolidate or coordinate their effort,
services, and resources for the accomplishment of the objectives of this Act.

CHAPTER XIII
FINAL PROVISIONS

SEC. 36. Joint Congressional Oversight - For the effective implementation of
this Act, a Joint Congressional Oversight Committee is created to be known as the
Blue Economy Oversight Committee, which shall be composed of five (5) Senators
and five (5) Representatives to be appointed by the Senate President and the Speaker
of the House of Representatives, respectively. The Minority shall be entitled to pro rata
representation. The Blue Economy Oversight Committee shall be jointly chaired by
the Chairperson of the Senate Committee on Economic Affairs and the Chairperson of
the House Committee Economic Affairs.

SEC. 37. Appropriations. - The amount necessary for the initial implementation
of this Act shall be charged against the current year’s appropriations of the Office of
the President. Thereafter, such amount shall be included in the annual General
Appropriations Act.

SEC. 38. Implementing Rules and Regulations. - The Council shall issue the
necessary rules and regulations to efficiently carry out the provisions of this Act
within sixty (60) days from effectivity.

SEC. 39. Separability Clause. -If any provision of this Act is held invalid or
unconstitutional, the remaining provisions not affected shall remain in full force and
effect.

SEC. 40. Repealing Clause. - All other laws, decrees, executives orders, and
rules and regulations contrary to or inconsistent with the provisions of this Act are
repealed or modified accordingly.


SEC. 41. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,