FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
r 
S.B. No. 
~ 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to institutionalize a Philippine Economic Environmental and 
Natural Resources Accounting (PEENRA) System to reflect environmental inputs and 
outputs in the determination of national income accounts. 
The national income accounts are important indicators for determining the level 
of development of a country. Conventional national income accounting systems 
measure economic performance by determining the value of goods and services 
produced in a country and aggregating them to come up with indicators of economic 
development such as the Gross National Product (GNP) and Gross Domestic Product 
(GDP). The goods and services that are included in this accounting system are those 
that have been "marketed", the prices of which have been the basis for estimating the 
value that are then included in computing economic indicators. This methodology thus 
reflects the goods and services produced, sold and bought in the economy. 
However, the conventional methodology for computing national income 
accounts has its shortcomings. In the process of producing marketed goods and 
services, the natural environment generates goods and services that are utilized but are 
not valuated. Consumption benefits of amenities provided by the natural environment, 
waste disposal services and pollution are part of producing marketed commodities but 
are not valuated (positively or negatively) and reflected in national income accounting. 
Indicators and standards generated by the national income accounting system 
are considered vital information for economic management and policymaking. They 
serve as basis for socio economic planning, formulation of development programs, and 
policy analysis in aid of legislation, among others. Thus, it is important that the national 
income accounts reflect a more accurate state of development and economic 
performance of the country. It should incorporate both environmental and non- 
environmental economic inputs and outputs for policymakers to make responsive, 
relevant and effective laws, plans and programs necessary for national development. 
In view of the foregoing, the urgent passage of this bill is earnestly sought. 
Senator 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S.B. N o . % B 5  
Introduced by Senator Loren Legarda 
AN ACT 
INSTITUTIONALIZING THE ENVIRONMENTAL AND NATURAL RESOURCES 
ACCOUNTING SYSTEM, DESIGNATING THE AGENCIES RESPONSIBLE FOR 
ITS IMPLEMENTATION, PROVIDING INSTITUTIONAL ARRANGEMENTS 
AMONG RESPONSIBLE AGENCIES AND APPROPRIATING FUNDS THEREOF 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. This Act shall be known as the "Philippine Economic 
Environmental and Natural Resources Accounting Act of 2007." 
SECTION 2. Statement of Policy. It is hereby declared a policy of the State to: 
(a) 
Develop a comprehensive information system and accounting framework 
that will take into consideration the role of both natural and 
environmental resources and their impact on the country's economy; 
(b) 
Include and institutionalize environmental and natural resources 
accounting as part of the national income accounting system; 
Provide indicators that will facilitate the integration of environmental and 
economic concerns in national development planning and policy making; 
and 
(c) 
(d) 
Establish and improve inter-agency coordination for the purpose of 
linking economic and environmental information and efficient data 
gathering among concerned agencies. 
SECTION 3. Philippine Economic Environmental and Natural Resources 
Accounting (PEENRA) System. A Philippine Economic Environmental and Natural 
Resources Accounting (PEENRA) System is hereby institutionalized within the 
government bureaucracy. The PEENRA System shall be based on the existing 
environmental accounting frameworks that are theoretically correct and accepted as 
evaluated by international environmental accounting experts. Among others, the 
PEENRA framework shall include accounting for environmental quality and waste 
disposal services, depreciation of natural capital, and environmental damages. 


SECTION 4. Objectives of the PEENRA System. The PEENRA shall 
supplement the current System of National Accounts and shall have the following 
major functions: 
(a) 
(b) 
(c) 
To support economic-environmental policy development; 
To generate environmentally-modified national income accounts; and 
To serve as a comprehensive data framework in the generation of 
economic-environmental statistics. 
SECTION 5. Involvement of Government Agencies. The following agencics 
shall be involved in the establishment and institutionalization of the PEENRA System; 
(a) 
(b) 
(c) 
(d) 
Department of Agriculture (DA); 
(e) 
(f) 
Other agencies, as necessary. 
SECTION 6. Creation of PEENRA Units. PEENRA units shall be created within 
the organizational structure of the DENR, the NSCB, the NEDA, the DOE and the DA. 
The functions of each of these units are provided in the following sections. PEENRA 
units shall be created in other agencies as necessary. 
Department of Environment and Natural Resources (DENR); 
National Statistical Coordination Board (NSCB); 
National Economic and Development Authority (NEDA); 
Department of Energy (DOE); and 
The Head of the PEENRA Units should at least be a Division Chief level or 
higher. The Department Head shall designate personnel component for the units 
and/or PEENRA Unit Head. 
SECTION 7. Functions of the Department of Environment and Natural 
Resources PEENRA Unit. The PEENRA Unit at the DENR shall: 
Develop and compile sectoral resource and environmental accounts and 
study and formulate viable approaches and methodologies in 
coordination with NSCB; 
Conduct studies and research in support of policy development related to 
PEENR A; 
Ensure that environmental considerations are integrated in their policy, 
project planning and implementation based on PEENRA results; and 
Provide environmental and natural resources data and strengthen its 
statistical capabilities for PEENRA. 


SECTION 8. 
Functions of the National Statistical Coordination Board 
PEENRA Unit. The PEENRA Unit at the NSCB shall: 
(a) 
Compile the PEENRA accounts, and study and formulate viable 
approaches and methodologies for the PEENRA; 
Explore ways and means to modify and improve current environmental 
and economic statistics, in coordination with the concerned date 
producing agencies as well as data users; 
Serve as repository of all PEENRA-related data and materials through the 
National Statistical Information Center that the NSCB ha established. 
(b) 
(c) 
SECTION 9. Functions of the National Economic and Development Authority 
PEENRA Unit. The PENRA Unit at NEDA shall 
Coordinate the conduct of consultations, orientations, and training 
seminars for the members of the Philippine Council for Sustainable 
Development (PCSD) and other concerned institutions or units; 
Coordinate the conduct of studies and research in support of policy 
development related to PEENRA; 
Establish mechanism for integration of environmental considerations in 
planning, policy, project development and implementation based on 
PEENRA results; 
Formulate and update indicators on the economy-environment 
interactions and sustainable development indices; 
Provide technical and secretariat services to the inter-Agency Committee 
and Task Forces which the PEENRA Steering Committee may create for 
the coordinated functioning of the date-generating agencies; and 
Act as the secretariat of the PEENRA Steering Committee. 
SECTION 10. Functions of the Department of Agriculture PEENRA Unit. The 
PEENRA Unit at DA shall: 
(a) 
Develop and apply resource account for the agriculture, livestock and 
fishery sectors and formulate viable data development approaches and 
methodologies in coordination with the NSCB; 
Conduct studies and research in support of policy development related to 
PEENRA in its respective sectors; and 
Ensure that environmental considerations are integrated in their policy, 
project planning and implementation based on PEENRA results. 
(b) 
(c) 


The 
above 
PEENRA 
Units 
shall 
closely 
coordinate 
to 
ensure 
consistency/complementary of activities in support of PEENRA system. Other agencies 
that will provide inputs to and adopt the PEENRA system may establish their own 
PEENRA units as necessary. 
SECTION 11. Functions of the Department of Energy PEENRA Unit. The 
PEENRA Unit at the DOE shall: 
(a) 
Develop and compile resource accounts for the energy sector and study 
and formulate viable approaches and methodologies in coordination with 
NSCB; 
(b) 
Conduct studies and researches in support of policy development related 
to PEENRA in its respective sectors; and 
Ensure that governmental considerations are integrated in their policy, 
project planning and implementation based on PEENRA results. 
(c) 
SECTION 12. Data Support. The NSCB, in coordination with the involved 
agencies, shall designate the required environment and economic statistics in the 
agencies/bureaus that shall be responsible for generating such data. 
SECTION 13. Creation of PEENRA Steering Committtee (PEENRA-SC). A 
Steering Committee on PEENRA is hereby created which shall initially include in 
addition to the agencies listed in Sec. 6, the following: 
the National Statistics Office (NSO); and 
the Department of Trade and Industry (DTI). 
(a) 
(b) 
SECTION 14. Functions and Compositions of the PEENRA-SC. The PEENRA- 
SC shall provide directions for the coordinated functioning of the PEENRA Units. It 
shall create ad-hoc or a permanent inter-agency committees and task forces who will 
support the data and technical requirements of the PEENRA Units. Designated 
Undersecretary level officials shall represent the member agencies for DENR, DTI, NSO, 
DA and the NSCB. There will also be representatives from the non-government sector 
to include one (1) representative each from the academe, NGO/PO, business and labor 
sectors; the Secretary of the Socio-Economic Planning and NEDA Director-General, as 
the Chairman of the PCSD, shall act as the Chairman of the PEENRA-SC. 
SECTION 15. Staffing Pattern for PEENRA Units. The staffing pattern of each 
PEENRA Unit shall conform to the existing position allocation and classification system 
adopted by the Department of Budget and Management. The agencies concerned shall 
as much as practicable utilize existing qualified employees for their respective PEENRA 
Units. In case however unavailability of qualified employees, the concerned agency 
shall be allowed to hire new recruits in accordance with existing provisions of laws. 
SECTION 16. Funding. The funding PEENRA activities, including hiding of 
personnel, shall be included in the budget preparation of each agency to be 
incorporated in the annual general appropriations act under separate fund items. 
SECTION 17. Implementing Rules. The PEENRA-SC is hereby directed to 
prepare and adopt guidelines to implement the specific provisions of this Act. 


SECTION 18. Effectivity Clause. This Act shall take effect fifteen (15) days after 
its complete publication in the Official Gazette or in at least two (2) national newspapers 
of general circulation, whichever comes earlier. 
APPROVED,