FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
1354 
S.B.No. ___ _ 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill mandates the planting of one billion trees all over the Philippines to address 
the depletion of the forests in our country. 
The rate of deforestation in the Philippines has reached an alarming rate of 2.1 
percent between the years 2000 to 2005, the highest in the South East Asia region. Some 887 
square kilometers of forest area lire denuded annually. Of the total land area of the 
Philippines of 30 million hectares, the forest area has decreased from 22.4 percent in 1995 to 
19.4 percent in 2002. According to the World Bank, the Philippines reforestation efforts had 
been inconsistent with minimal tree survival rates. The increasing demands of urbanization 
and industrialization have led to environmental transgressions such as illegal logging and 
forest fires. 
This bill seeks to address the need to restore the richness of our biodiversity by 
reviving the richness of our forests through the planting of one billion trees all over the 
country. The propo,sed measure enlists the participation of different sectors of society in the 
task of restoring the grandeur of our forest lands. Various government agencies, local 
government units, non-government organizations, private landowners, corporations, 
indigenous peoples, individual families and government personnel who form themselves 
into cooperatives, the upland, lowland and coastal communities, and interested individuals 
are in partnership to plant forest and fruit tree species in private lands, in idle portions of 
alienable and disposable lands (A & 0), and open and denuded public forest lands. 
Groups and individuals who participate in this program are given benefits and 
incentives. For instance, those who planted and maintained the trees along highways, 
roadsides, and other vacant portions of public A & 0 land shall have exclusive right to 
harvest and utilize the trees when they mature. Moreover, community-based forest 
managers shall have the right to make the reforested and protected area an eco-tourism 
spot. They can collect entrance fees and put up income-generating auxiliary services for the 
maintenance and conservation of the area. They are also exempted from forest charges and 
real property tax. 
Finally, this bill makes it illegal for any person who is not a member of the 
community or cooperative that planted the trees to cut or gather trees from reforested areas. 
It will also prohibit the conversion of forestlands into agricultural, pasture and mining and 
other non-forest uses. 
In view of the foregoing, the passage of this bill is earnestly sought. 
~~--,=> ~ 
--
LOREl"TLEGARDA 
Senator 
"-, ' 
" , 


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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1354 
Introduced by Senator Loren Legarda 
AN ACT 
III 
·JIIL 13 lil: :1~; 
rvr<"'l P" 
r, 
. 
1'6-" . 
, 
TO 
SPUR 
THE 
PLANTING 
OF 
A 
BILLION 
TREES 
THROUGH 
COMPLEMENTARY TREE PLANTING PROGRAMS OF THE DENR AND 
VARIOUS GOVERNMENT AGENCIES, LOCAL GOVERNMENT UNITS AND 
COMMUNITIES, SCHOOLS AND UNIVERSITIES, AND CIVIC AND NON-
GOVERNMENTAL ORGANIZATIONS, PROTECTING THE REMAINING 
NATURAL FORESTS AND FOREST PLANTATIONS, AND CREATING A 
FUND THEREFORE, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representative of the Philippines In 
Congress assembled: 
CHAPTER 1 
BASIC POLICIES, OBJECTIVES, COVERAGE 
AND IMPLEMENTING AGENCIES INVOLVED 
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SECTION 1. Title. - This Act shall be known as the "Billion Trees Act of 
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2010." 
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SECTION 2. Declaration of Policy. - The State shall protect and advance the 
9 
right of the people to a balanced and healthful ecology in accord with the rhythm 
10 
and harmony of nature. The protection and rehabilitation of forest lands shall be 
11 
given the highest priority to ensure environmental stability of the nation. 
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13 
The State shall adopt and implement a sustainable forest development and 
14 
management program. It shall promote the participation of all sectors of society, 
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particularly national government agencies, the upland, lowland, and coastal 
16 
communities, local government units (LGUs), non-governmental organizations 
17 
(NGOs), schools, colleges and universities, private landowners and corporations and 
18 
indigenous people in replanting denuded forest land and idle and disposabJe (A & 
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D) land. 
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The State shall likewise promote community-based forest management. 
SECTION 3. Objectives. - The Billion Trees Program aims to improve the 
country's ecology and the forest regeneration capacity. More specifically, it intends: 
(a) To significantly increase reforestation efforts in upland, lowland and coastal 
communities in a more efficient manner; 
(b) To reverse the deteriorating effects of soil erosion, flash flooding, siltation of 
rivers and dams, drought and other negative consequences of denuded 
• 
upland; 
(c) To make forest and fruit tree seedlings available and more accessible to all 
cities and municipalities in the country; 
(d) To promote forest diversity by planting dipterocrap, pine, mossy and 
mangrove forest species in portions of the plantation whenever feasible; 
(e) To help rehabilitate wildlife habitat through effective forest protection 
strategy; 
(f) To ensure adequate supply of forest and agricultural products in the future; 
(g) To generate employment opportunities and provide additional income to the 
countryside and rural communities. 
SECTION 4. Coverage. - At least one million (1,000,000) hectares of open and 
denuded public forest lands, private lands, and idle portions of alienable and 
disposable (A & D) lands are targeted for the for the first five (5) years to be planted 
to both forest and fruit tree species. 
SECTION 5. Definition of Terms. - As used in this Act, the following terms 
shall mean: 
(a) "Critical watershed" refers to a drainage area of a river system, lake or water 
reservoir supporting existing and proposed hydroelectric power plants, 
domestic 
water supply, 
and 
irrigation works 
needing immediate 
rehabilitation and protection to minimize soil erosion and improve water 
yield. 
(b) "Community" is a group people who may or may not share common 
interests, needs, visions, goals, and beliefs, occupying a particular territory 
inside or adjacent to forest land or national park. 
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(c) "Eeo-tourism spot" is a plantation site developed for biodiversity 
conservation, cultural, and human enjoyment such as a forest park, bird, and 
some wildlife sanctuary, and where sound tourism activities are 
sustainability implemented, yielding socio-economic benefits. The developer 
can put up auxiliary services, collect appropriate fees, for his/her income and 
for the maintenance of the area. 
(d) "Forest diversity" is the variety and variability of forest species growing in 
the forest land. In the plantation, at least three (3) different species, including 
fuelwood species, and other species such as banana, bamboo, and the like, 
should be planted every'ten (10) hectares, with the least planted species 
occupying at least one-fifth (1/5) of the ten-hectare area. 
(e) "Forest charges" refer to the charges imposed and collected by the 
government on forest products cut, harvested or gathered from forest lands 
as specifically provided for under Republic Act No. 7161. 
(f) "Forest lands" are those lands of the public domain, which have been 
classified into production forest lands and protection forest. Forest 
reservation refers to forest lands, which have been set aside by the law for a 
specific purpose, such as watershed reservation, military or civil reservation. 
(g) "Community-based Forest Management and Agreement (CBFMA)" refers to 
an agreement between' the Department of Environment and Natural 
Resources (DENR) and an organized community acting through its duly 
. authorized forest manager, known as community-based forest manager 
(CBFM), for the management by said community of a specified area in the 
public domain according to a comprehensive management and development 
plan and, in consideration therefore and certain other obligation, grants, said 
community the right to harvest, process, sell or otherwise utilize the trees and 
other products grown by them or from the residual forest within their 
specified area. The agreement is granted for fifteen (15) year, renewable for 
another fifteen (15)years. 
All references to "Forest Land Management Agreement (FLMA)" and "Forest 
Land Manager (FLM)" are likewise hereby amended as "Community-based 
Forest Management Agreement (CBFMA), and Community-based Forest 
Manager (CBFM)" 
and Community-based Forest Manager (CBFM)", 
respectively. 
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(h) "Fuel wood species" are species of high calorific value and are suitable for 
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fuel wood or firework such as, but not limited to ipil-ipil, kakawate, agoho, 
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kamachile, gmelina, acacia, bakaua, and neem tree. 
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(i) "Industrial Forest Plantation Management Agreement (IFPMA)" is a contract 
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entered into by and between a qualified person and the government for the 
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former to occupy and pos'sess for a definite period of time in consideration of 
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a specified rental a specific area of the production forest land, in order to 
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establish an industrial forest plantation. 
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0) "Indigenous peoples" refer to a tribe or indigenous Filipinos who have 
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continuously lives as communities on communally bounded and defined 
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land since time immemorial and have succeeded in preservations, 
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maintaining and sharing common bonds or languages, customs, traditions, 
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and other distinctive cultural traits. 
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(k) "Military reservation" refers to forestland, which have been proclaimed by the 
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President for military purposes such as air bases, campsites, docks and 
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harbors, firing ranges, naval bases, target rangers, and wharves. 
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(I) "National Park" refers to a land of the public domain essentially of natural, 
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wilderness, scenic or historic character which has been withdrawn from 
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settlement, occupancy, or any form of development, except in conformity 
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with an approved management plan, and set aside such to conserve the area 
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and to preserve the scenery, the natural and historic objects, wild animals and 
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plants therein mainly for biodiversity and! or human enjoyment. 
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(m) "People-oriented forestry" is a program democratizing access and 
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management of forest land to poor upland and coastal dwellers. Aside from 
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CBFMA, this may include Integrated Social Forestry Program (ISFP), 
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Community Forestry Program (CFP), and Ancestral Land Management. 
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(n) "Silviculture" refers to scientific method of growing forest trees, their 
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management and harvest. This includes such practices as assisted natural 
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regeneration (ANR), timber stand improvement (TSI), and selective cutting 
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method. 
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(0) "Private lands" refers to lands covered by either administrative or judicial 
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titles such as free patent, homestead, and sales patent, torrens title obtained 
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under the Land Registration Act (Act No. 49), as amended. 
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SECTION 6. Implementing Agencies Involved. - The following departments 
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shall perform major roles: 
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(a) The Deparhnent of Environmental and Natural Resources (DENR) and its 
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network of Provincial/Community Environment and Natural Resources 
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Offices (PENROs/CENROs) shall be the overall coordinating and monitoring 
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agency of the Program, particularly in the identification, selection and 
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allocation of sites, making available quality planting materials, using 
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recyclable potting materials whenever possible, the planting of the right 
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species in particular areas, prioritization of critical watersheds, application of 
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efficient reforestation technologi",s like cover cropping prior to plantation, the 
9 
planting of fuelwood species in specific areas, the necessary steps to protect 
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the remaining natural forests and national parks, and information and 
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campaign drive 
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It shall ensure that the permit to cut and transport trees from plantation shall 
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be issued within thirty (30) working days from the date the application is 
14 
filed. 
15 
(b) The Department of Interior and Local Government (DILG) and local 
16 
government units (LGUs) shall mobilize the police and help organize 
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communities and other sectors of society to participate in the Program. It 
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shall create special police units. 
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(e) The Department of National Defense (DND) shall organize a special unit 
20 
whose· main responsibility is reforesting denuded portions of military 
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reservations and other areas designated by the DENR, and protecting 
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forested areas, both natural and plantation. It shall also assign DND 
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personnel on a full-time basis in protecting forest areas, in accordance with 
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Section 24 hereof. 
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(d) The Department of Agriculture shall assist upland communities raise fruit 
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tree seedling, and provide them knowledge on proper and sustainable 
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agricultural technologies and practices. 
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(e) The Department of Education (DepEd) shall strengthen environmental 
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education and mobilize the students to plant trees and take care of them in 
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appropriate vacant areas in their localities. 
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(0) The Department of Public Works and Highways (DPWH) shall orgamze 
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special units to plant appropriate and available species on strips of land along 
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national and arterial roads and maintain and protect them. 
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(g) The Department of Tourism (DOT) shall identify and promote eco-tourism 
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plantation in coordination with the DENR. 
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(h) Other government agencies and state colleges and universities with 
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administrative jurisdictiolil over tracts of public lands shall, as necessary, also 
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rehabilitate and reforest said lands. 
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CHAPTER 2 
6 
REFORESTATION BY UPLAND COMMUNITIES 
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SECTION 7. Community Reforestation with Community-Based Forest 
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Management Agreement (CBFMA). 
-
New reforestation, 
assisted natural 
10 
regeneration (ANR), and related programs shall be awarded mainly to upland and 
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coastal communities. Individuals, families, police, military, and other government 
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personnel who wish to participate shall form themselves into cooperatives. The 
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agreement shall be granted for twenty-five (25) years, subject to the terms and 
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conditions in the CBFMA and subsequent rules and regulations promulgated in 
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accordance with Section 36 hereof. 
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SECTION 8. Role of Non-governmental Organizations (NGOs) and 
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Academic Institutions. - The NGOs and academic institutions shall be tapped to 
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handle relevant services, especially social and technical training and monitoring and 
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evaluation of the reforested area: Provided, That the NGOs and academic institutions 
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that handled the training will not-be the same ones that will conduct the monitoring 
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and evaluation of the reforested area. 
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SECTION 9. Rights and Obligations of the Community-Based Forest 
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Manager (CBFM). - The CBFM can harvest, process, sell or otherwise utilize the 
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products grown by him/her on land covered by the CBFMA, or make portions of 
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the contracted area into an eco-'l:ourism spot. The CBFM shall have the follOWing 
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obligations: 
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(a) Practice appropriate silvicultural system or cutting regimes for mature trees 
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in accordance with management plans; cleared areas shall be immediately 
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replanted within one (l)year after cutting; 
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(b) Promote forest biodiversity by planting indigenous forest species and 
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conserving natural forest species in contracted forest areas. Fuelwood trees 
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can be planted to add to species diversity and to eliminate the community's 
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need to cut prime wood species for fuel and charcoal purposes. 
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(c) Pay the government through the DENR, a production share out of income 
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from sales of products harvested from the CBFMA areas in an amount 
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equivalent to the real value of government investment in the area; 
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(d) The awarded groups shall ensure high survival rate of planted seedlings, 
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maintain and protect trees until maturity, in exchange for their right to 
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harvest and utilize and trees after sometime. 
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SECTION 10. Additional Area for Frnit Trees Plantation. - For every six (6) 
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hectares of area planted to forest species, the community is allowed to plant one (1) 
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hectare to fruit trees and other agricultural crops. The land tenure shall be co-
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terminus with the terms of the CBFMA. 
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The DA and developed extension workers shall assist the community 
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contracts raise fruit tree seedlings. They shall also train the communities proper 
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agricultural technologies and practices. 
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SECTION 11. Other Incentives. - CBFMs shall enjoy the following benefits: 
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(a) Reforested are as an eco-tourism spot. Community forest managers and 
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CBFMs shall have the right to make the reforested and protected area an eco-
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tourism spot. They can collect gate/entrance fees and put up income-
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generating auxiliary services for the maintenance and conservation of the 
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area. Operation of the area shall be coordinated with the Department of 
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Tourism (DOT) for tourism promotion, and the LGUs for infrastructure 
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support and collection of appropriate taxes. 
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(b) Market linkage for the agricultural output. The DA, in coordination with 
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agribusiness research organizations of the private sector shall update upland 
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farmers 'of market prices of fruits and other agricultural products, and assist 
29 
them in identifying buyers and marketing outlets. 
30 
(c) Market linkage for their forest products. The DENR and other concerned 
31 
agencies and groups, shall update upland forest managers and CBFMs of 
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domestic buyers of particular forest products, including the specified product 
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quality. 
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(d) Option to turn over the management and right to harvest the reforested land 
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to the DENR at least after five (5) years of the CBFMA. This is particularly 
36 
applicable in plantations and ecotourism spots where the trees are better left 
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to grow and mature beyond the fifty (5) year constitutional limit. The 
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government, through the DENR, shall compensate the CBFM the amount 
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equivalent to the stumpage value of standing trees minus real investment of 
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the government in the area. 
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(e) Priority to be granted additional area for reforestation with CBFMA, or 
.. 
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through an Industrial Forest Plantation Management Agreement (IFPMA) of 
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purely plantation establishment type. 
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(f) Exemption from forest charges and real property tax. CBFMs and awardees 
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of other people-oriented foreshy programs shall be exempted form paying 
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taxes on revenue from reforested and protected areas. 
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(g) Right to secure the growing trees. CBFMs may use the plantation of at least 
12 
five (5) years old with adequate forest stand, in the issuance of asset-backed 
13 
securities, such as bonds and stocks, to finance the reforestation of another 
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area. Said asset-backed securities shall enjoy tax breaks and other incentives 
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whenever possible, already provided under existing laws. 
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CHAPTER 3 
18 
REFORESTATION BY AFPjPNP PERSONNEL 
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SECTION 12. Reforestation of Denuded Military Reservation Areas. -
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Spearheaded by the organized special units, all units of the Armed Forces of the 
22 
Philippines (AFP) stationed in the military reservation area, whether temporarily or 
23 
permanently, shall be involved in reforesting denuded portions of the area not 
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utilized for military and training purposes. They and the succeeding units shall 
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maintain and protect the trees until maturity. Reforestation costs for three (3) years 
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shall be funded by the DND. Likewise, maintenance costs shall be shouldered solely 
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by the DND. 
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SECTION 13. Incentives. - The military and police personnel participating in 
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the reforestation shall be entitled to the following incentives. 
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(a) Additional allowance in compensation for the particular task or phase of the 
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contract they have completed; 
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(b) Rights and obligations of the Community-based Forest Manager under 
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Sections 9 and 11 above; 
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(c) Acquisition of the shares of stock of the cooperative/corporation to be formed 
2 
representing the economic value of trees planted; 
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(d) Earning from said stocks apd revenue shares from the sale of forest products 
4 
yielded by the plantation as their retirement credits in the future. 
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SECTION 14. Report to the DENR. - The AFP and the PNP shall submit an 
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annual report to the DENR on the progress of their projects including the area they 
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have reforested, and the results of their operations in forest protection as mandated 
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in Chapter 6 of this Act. 
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CHAPTER 4 
12 
PRIVATE INDIVIDUALS AND CORPORATIONS' INVOLVEMENT 
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SECTION 15. Adoption of a Reforestation Project. - Private corporations, 
15 
foundations, foreign and local NGOs, and similar institutions shall be invited by the 
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DENR and local government officials to adopt and finance a denuded area for 
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reforestation and protect trees. The assistance can be channeled directly from the 
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donor to the upland implementers and beneficiaries and assisting local NGOs, The 
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DENR shall be informed of such arrangement for assistance in identifying priority 
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areas of reforestation. If funds are channeled through the DENR, the latter shall 
21 
enter into a Memorandum of Agreement (MOA) with the donor to account for wise 
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and proper spending of the donated funds. 
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SECTION 16. Adoption of a Forested Area for Protection. - The private 
25 
sector, in coordination with the DENR, may adopt a particular forested area, like 
26 
portions of a national park, for protection and biodiversity conservation through 
27 
MOA with the DENR. The mechanics for the channeling of funds as specified in 
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Section 15 above shall be adopted. The DENR shall be identify and publish area 
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available for adoption. 
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SECTION 17. Development oj Private Forestry and Incentives. - Private 
32 
landowners who shall plant forest trees in their lands shall enjoy the following 
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incentives: 
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(a) Technical assistance from the DENR on proper silvicultural practices; 
35 
(b) Update of forest products market and prices by the DENR and wood 
36 
producers' groups or association; 
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(c) Exemption from forest charges under Republic Act No. 7161 and value-added 
2 
tax (VAT) for the sale, barter or exchange of timber and forest products, and 
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from real property tax under Republic Act No. 7160; 
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(d) Priority in credit assistance granted by the government-owned and controlled 
5 
corporations at reasonable interest rates; and 
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(e) No restriction in exporting timber and other forest products grown in the 
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land. 
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For certification purposes, tree plantations shall be registered with the 
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barangays and municipal offices, which shall maintain permanent registry books. 
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SECTION 18. Planting of Fuelwood Species. - The DENR shall diSSEminate 
13 
technology on the planting of fuelwood species for firewood purposes to lessen the 
14 
pressure on the cutting and harvesting of prime wood species for firewood 
15 
purposes. 
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SECTION 19. Ownership of Planted Trees Along Highways. - Those who 
18 
planted and maintained the trees along highways, roadsides, and other vacant 
19 
portions of public act A & D land shall have exclusive right to harvest and utilize the 
20 
trees when they mature. The' local CENRO shall allocate among interested 
21 
individuals and/or groups the space available for this arrangement, and issue the 
22 
necessary papers granting such exclusive rights and ownership to the awarded 
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party. 
24 
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Should the local DENR office and the local government unit decide to keep 
26 
the trees for ecological and beautification purposes, they shall compensate the 
. 27 
parties who planted and protected the trees the value equivalent to the market value 
28 
of the trees at the time the turn-over is made. 
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SECTION 20. Recognition Award. -
In recognition, the DENR, the 
31 
Department of Trade and Industry (DTI) and the Philippine Information Agency 
32 
(PIA) shall advertise the names of participating corporations, agencies and NGOs 
33 
and their environmental projects. Awards and recognition shall be determined by 
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the DENR in collaboration with, other government agencies in the implementing 
35 
rules and regulations (IRR) to be promulgated pursuant to Section 36 of this Act. 
36 
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CHAPTERS 
2 
REFORESTATION BY LOCAL GOVERNMENT UNITS 
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SECTION 21. Seedling Nursery in Every City/Municipality. - Pursuant to 
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Section 17b (l.i, 3iii) of the Local Government Code, seedling nurseries shall be 
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established in every city or municipality, for this purpose, local governments shall 
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be allowed to enter into contract with private enterprises. Nursery supervisors 
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whose positions shall be created by LGUs shall be hired and designated by LGUs to 
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establish and oversee such nurseries containing both forest and fruit tree species, 
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though mainly the former, seeds shall be sourced from certified Seed Production 
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Areas (SPAs) certified by the DENR. 
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SECTION 
22. 
Establishment 
of 
Mini-Forest 
Parks 
in 
Every 
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City/Municipality. - Every city or municipality shall establish a mini-forest park or 
15 
multi-purpose park such as a botanical garden at a ration of not less than one (1) 
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park per fifty thousand (50,000) population, each park to be at least half a hectare or 
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five thousand square meters (5,000 sq.m.) in area whenever practicable or to the 
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extent possible. Each city or municipality shall submit to the DENR the list of 
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available lands for such purpose and include in its yearly budget the necessary 
20 
funds for the establishment and maintenance of the urban forest parks. The 
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Secretaries of the DENR and DILG shall coordinate closely to ensure compliance 
22 
with this provision, and shall coordinate with various agencies of the national 
23 
government and the private sector to enhance the implementation of urban forestry. 
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Roadsides and islands, campuses, office compounds, cemeteries, riverbanks, 
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shorelines and other areas shall also be planted with trees. Students, employees, 
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members of civic and people's organizations shall be invited to undertake the 
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activity. The maintenance and protection of the trees shall be closely coordinated by 
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the LGUs, the DENR and all other concerned agencies. 
30 
31 
Every subdivision project to be developed after the promulgation of this Act 
32 
shall be included the establishment of parks not less than twenty five percent (25%) 
33 
of the required open space in accordance with Presidential Decree No. 953. 
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Guidelines for the establishment and maintenance of these parks within 
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subdivisions shall be prepared jointly by the Housing and Land Use Regulatory 
36 
Board (HLURB) and the Department of Environment and Natural Resources. 
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SECTION 23. Recognition of Outstanding of "Greenest" City or 
2 
Municipality. - Three (3) years after the effectivity of this Act, the outstanding city or 
3 
municipality in each province having the best mini-forest parks and reforested idle 
4 
portions of A & D land shall be given recognition and awards by the DENR and 
5 
promoted by the Department of Tourism (DOT) as among the priority eco-tourism 
6 
destination areas in the country: Provided, That the necessary infrash'ucture and 
7 
tourism services must already be in place before the area is promoted as an 
8 
ecotourism attraction. 
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CHAPTER 6 
11 
FOREST PROTECTION 
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SECTION 24. Forest Protection Teams. - The Secretary of DENR shall 
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enforce forestry laws to protect the remaining natural forests and plantation forests 
15 
from illegal loggers, poachers, kaingin farmers, pests and diseases, fires and other 
16 
forest destroyers. Forest protec.tion teams under the DENR shall be organized 
17 
consisting of personnel drawn from the DENR, the AFP, and the PNP on a full-time 
18 
basis. They shall be assisted by personnel from other government agencies, civilian 
19 
volunteers, and concerned NGOs. Equipments shall be acquired by the DENR aside 
20 
from equipment support provided by other units. 
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SECTION 25. Incentives. - Members of the teams shall be granted incentives 
23 
to include, but not limited to, higher base pay, hazard pay, uniform allowance, 
24 
group issuance, and a reward system of twenty percent (20%) of the value of the 
25 
confiscated materials. 
26 
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SECTION 26. Forest Protection Equipment. - The DENR, as lead agency, the 
28 
DILG, and the DND, shall provide the teams with primary equipment such as 
29 
aircraft, global positioning systems, land transportation, communication facilities, 
30 
ground fire fighting equipment, and basic pesticides against common forest pests 
31 
and insects. 
32 
33 
SECTION 27. Control of Forest Conversion to Agricultural Use. - The DENR, 
34 
the DA, and the Department of Agrarian Reform (DAR) shall stop illegal conversion 
35 
of forest lands into agricultural, tnining, pasture, and other non-forest uses of the 
36 
land. The DENR shall cause the cancellation of instructions issued such lands and 
12 


1 
repossesses said lands for reforestation purposes, and the farmers shall be organized 
2 
to regenerate the land through pf'ople-friendly forestry. 
3 
4 
SECTION 28. Sloping Agricultural Land Technology (SALT). - In direct 
5 
support to this reforestation program, the DENR, the DA, and the DAR shall 
6 
implement the Sloping Agricultural Land Technology (SALT) and other applicable 
7 
technology in all 
upland areas cultivated by their respective program 
8 
clientele/beneficiaries for agricultural purposes. 
9 
10 
CHAPTER 7 
11 
FINANCING THE PROGRAM 
12 
13 
SECTION 29. Program Cost. - The cost of the Billion Trees Program shall not 
14 
exceed Seven Hundred Fifty Million Pesos (P750,OOO,000.00) per year for a period of 
15 
five (5) years. Two Hundred Fifty Million Pesos (P250,000,000.00) of which shall be 
16 
appropriated. The sources of the other Five Hundred Million Pesos (P500,000,000.00) 
17 
are hereby identified. 
18 
19 
SECTION 30. Forest Management Fund. - The Forest Management Fund 
20 
(FMF) is hereby created for the plantation, protection and management of the billion 
21 
trees. par this purpose, fifty percent (50%) of the forest charges collected under 
22 
Republic Act No. 7161 under the Timber License Agreement (TLA) , or in the case of 
23 
Timber Production Sharing Agreement (TPSA), fifteen percent (15%) of the 
24 
government share therefrom; forest users fees; silvicultural fees; rentals for special 
25 
use of forest lands; all proceeds from disposition of illegal cut forest products and 
26 
timber and penalties and fines, shall go to the Fund. 
27 
28 
The Fund shall be administered by a body created by the DENR which shall 
29 
include but shall not be limited to representatives from the wood industry, a 
30 
nongovernmental 
organization, 
the 
duly 
accredited 
forestry 
professional 
31 
association, the Department of Budget and Management, the DILG and local 
32 
government units and the DENR itself. The body shall establish the necessary 
33 
operating guidelines of allocation, use and safeguarding of the Fund. 
34 
35 
SECTION 31. Other Sources of Funds. -
36 
13 


1 
(a) At least one percent (1 %) of the Countrywide Development Fund of S'2nators 
2 
and Congressmen, which, shall be managed by them in coordination with 
3 
local government units; 
4 
(b) Securitization of the grown trees which are at least five (5) years old which 
5 
may be used as asset-backed securities, such as bonds and stocks, to finance 
6 
the reforestation of other areas, whether by upland communities, AFP /PNP 
7 
personnel, or the private sector. 
8 
9 
SECTION 32. Fund Management. - In the case of the contract reforestation, 
10 
the funds shall be channeled by the Department of Budget and Management (DBM) 
11 
through the Land Bank of the Philippines (LBP), the Development Bank of the 
12 
Philippines (DBP), or the LBP /DBP accredited rural banks. Funding shall be 
13 
discontinued if found misused 'and scheduled activities not followed. The DENR 
14 
shall be advise the banks the amount and the period of release of funds to the 
15 
community contractors. 
16 
17 
CHAPTERS 
18 
CRIMINAL OFFENSE AND PENALTIES 
19 
20 
SECTION 33. Misuse of Funds. - Any contractor, officer of a cooperative, 
21 
government official including a local official, or an employee, who shall unlawfully 
22 
and maliciously divert funds under this Act for purposes other than intended, shall 
23 
be criminally prosecuted and, if found guilty, shall be punished with imprisonment 
24 
of not less than four (4) months but not more than four (4) years. 
25 
26 
SECTION 34. Illegal Cutting of Planted Trees. Any person who is not a 
27 
member of the community or cooperative who planted the trees who shall cut or 
28 
gather trees from reforested areas, shall be fined with twice the current market value 
29 
of the trees removed, and/ or imprisoned for not less than four (4) months but not 
30 
more than four (4) years. 
31 
32 
SECTION 35. Premature Cutting of the Planted Trees and Noncompliance 
33 
with Other terms of CBFMA. - CBFMs who shall prematurely cut the trees up to 
34 
one-fifth (1/5) of the area without any authority from the PENRO or CENRO, or 
35 
replant dipterocarp and other endemic species, not in accordance with sound 
36 
forestry management practice, shall be disqualified from their rights under the 
14 


1 
CBFMA and shall not be compensated for the value of the remaining standing trees. 
2 
The jurisdiction of the reforested area shall revert to the DENR. In addition, if the 
3 
estimated value of the felled trees is larger than the real investment of the 
4 
government in the area, such guilty party shall pay the difference in value; shall not 
5 
be eligible for future government reforestation and other forestry-related activities; 
6 
and shall be criminally prosecuted and imprisoned for a period of not less than four 
7 
(4) months but not more than four (4) years. 
8 
9 
CHAPTER 9 
10 
ADMINISTRATIVE PROCEDURES AND SPECIAL CLAUSES 
11 
12 
SECTION 36. Monitoring and Evaluation. - Periodic monitoring and 
13 
evaluation of reforestation contract, other people-oriented forestry, urban 
14 
reforestation, and forest protection activities shall be conducted by the 
15 
CENRO/PENRO or an independent entity contracted for the purpose, whichever is 
16 
practical, to ensure that proper use of resources and desired targets are 
17 
accomplished on time. 
18 
19 
SECTION 37. Promulgation of Rules and Regulations. - The Secretary of the 
20 
DENR, in coordination with the Secretaries of the DILG and the DND, shall prepare 
21 
and publish the rules and regulations implementing this Act within sixty (60) days 
22 
from the date of its effectivity. 
23 
24 
SECTION 38. Separability Clause. - If any provisions of this Act shall be held 
25 
unconstitutional, the remaining portions not otherwise affected shall remain in full 
26 
force and effect. 
27 
28 
SECTION 39. Repealing Clause. - All laws, executive orders, rules and 
29 
regulations, or parts thereof inconsistent with any of the provisions of this Act are 
30 
hereby amended, repealed or modified accordingly. 
31 
32 
SECTION 40. Effectivity. - This Act shall take effect after its complete 
33 
publication in at least two (2) newspapers of general circulation. 
34 
35 
Approved, 
15