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

FIFTEENTH CONGRESS
First Regular Session

House Bill No__ 516

Introduced by HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

The documentary film An Inconvenient Truth by former US Vice President Al
Gore presents chilling facts about the Earth's worsening condition (rapidly-
deteriorating polar ice caps, extinction of various flora and fauna, steady increases in
worldwide temperature, erratic weather conditions and the adverse effects of these
on human health) attributed to global warming. The film adds that occurences are
bound to get worse unless every person and every government on the planet acts to
mitigate the rampant environmental degradation as a result of human activity
involving carbon emissions

Philipine events in recent memory lend credence to Gore's findings: landslides,
flashfloods, errartic weather distubances have brought harmful effects on the land
and the people. Air pollution reaching near-intolerable and unhealthy levels is
another major problem as well since it is the major cause of serious respiratory
ailments and costs the government millions of pesos in health care.

This bill seeks to encourage the planting of a billion trees to address the above
stated problems. In addition to their aesthetic appeal, studies have proven that trees
produce oxygen and reduce carbon dioxide in the atmosphere, as well as moderate
ground temperatures. They are important component of the natural landscape as well
since they prevent soil erosion. This program is expected to prevent calamities as a
result of denudation of forests, offset carbon emissions, and provide livelihood
opportunities for people.

Aside from its impact on the. environment, the “Billion Trees Act of 2010”
would also foster greater cooperation between the government and various sectors,
since its implementation depends on sustainable forestation/reforestation programs
involving all sectors of society.

In light of the aforementioned, passage of this bill is earnestly sought.

frorvcke Taha

MARCELINO “MARCY” R. TEODORO
Representative, 1st District
City of Marikina


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

FIFTEENTH CONGRESS
First Regular Session

-
House Bit! No-_948

Introduced by HON, MARCELINO “MARCY” R. TEODORO

AN ACT
TO SPUR THE PLANTING OF A BILLION TREES AND FOR OTHER PURPOSES

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

CHAPTER I
BASIC POLICIES, OBJECTIVES AND COVERAGE

SECTION 1. Short Title. -This Act shall be known as the “Billion Trees Act of
2010"

SEC. 2. Declaration of Policy. -It is the declared policy of the State to protect
and advance the right of the people to a balanced and healthful ecology in accord
with the rhythm and harmony of nature, Towards this end, the protection and
rehabilitation of forestlands shall be given the highest priority to ensure
environmental stability of the nation

The State shall adopt and implement a sustainable forest development and
management program. It shall create opportunities for the participation of, all sectors
of society, particularly the upland, lowland, and coastal families, communities and
organizations, national government agencies, local government units (LGUs),
nongovernment organizations (NGOs), schools, colleges and universities, private
landowners and juridical personalities, and indigenous peoples in the national
reforestation program of denuded forestlands, idle alienable and disposable (A&D)
land, private lands and other government lands.

The State shall likewise adopt various approaches to community-based forest
Management in consideration of differences in the sociocultural, environmental and
geophysical nature of the country’s forestlands.

SEC. 3. Objectives. ~The Billion Trees Program aims to improve the country’s
ecology and forest regeneration initiatives.
More specifically, it intends:

(a) To hasten reforestation efforts in upland, lowland and coastal areas
in a more efficient manner;
(b) To minimize soil ercsion, flash flooding, siltation of rivérs and dams,

drought and other negative consequences through rehabilitation of
degraded watershed areas; E

(c) ‘To make forest and fruit tree seedlings available and more accessible
to all cities and municipalities in the country;

() To promote forest biodiversity through the reintroduction of
indigenous species:

(e) To help rehabilitate wildlife habitat through effective forest

protection strategy;
a) To ensure adequate supply of forest and agricultural products in the


future; and
(9) To generate employment opportunities and provide additional income
to the countryside and rural communities.

SEC. 4, Coverage. ~ At least one million (1,000,000) hectares of open and
denuded production forestlands. protection forestlands such as critical watersheds,
Mangroves, national parks, protected areas, including ancestral lands, private lands,
idle portions of alienable and disposable lands, reservations under the jurisdiction of
other government agencies, city and municipal parks, and portions of the required
Open spaces in subdivision projects are targeted for the first five (5) years
implementation of this Act

SEC. 5. Definition of Terms. — As used in this Act, the following terms shall
mean

(a) “Afforestation” refers to the artificial establishment of forest on lands
previously not covered with forest vegetation.

(b) “Alienable and Disposable (A&D) Land” refers to land of the public domain,
which has been classified and declared as such, and available for
disposition.

(©) “Billion Trees Program” refers to the national program under this Act for
the afforestation, reforestation and rehabilitation of open and denuded,
production forestlands, protection forestlands, such as critical watersheds,
Mangroves national parks and protected areas under the NIPAS, ancestral
lands, private lands, idle portions of alienable and disposable lands of the
government, reservations under the jurisdiction of other government
agencies, and city and municipal parks, including portions of the required
Open spaces in subdivision projects. The participants in the program
through a Billion Trees Program Contract are organized communities,
People’s organizations, cooperatives, NGOs, juridical personalities,
government agencies including LGUs, upland and coastal families, “and
private individuals and government employees including members of the
Armed Forces of the Philippines and the Philippine National Police (PNP)

(d) “Billion Trees Program Contract” refers to an agreement entered into by
and between the department of environment and natural resources (denr)
and a participant which shall serve as proof of participation for the
enjoyment of rights and technical services from Participating agencies of
the government and the performance of obligations pursuant to this act
the contract shall be for twenty-five (25) years, renewable for another
twenty-five (25) years.

(2) “Community” refers to a group of people occupying a particular territory.

(f) “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 soii erosion and improve water
yield.

(g) “Eco-tourism spot” refers to a plantation site developed for biodiversity
conservation and cultural and human enjoyment such as a forest park, bird
and wildlife sanctuary, and where sound tourism activities are sustainably
implemented, yielding socioeconomic benefits.

(h)*Forest charges” refer to the levy imposed and collected by the
government on timber and other forest products cut, harvested or gathered
from the forestlands and from “Alienable and Disposable” (A&D) lands in
accordance with Republic Act No. 7161 {Increasing the Forest Charges on
Timber and Other Forest Products),

@ “Forest Biodiversity*refers the variety and variability of forest species



growing in the forestland

(j) “Forestlands” refer to lands of the public demain that have been classified
as such and all unclassified lands of the public domain. For the purpose of
this Act, forestlands shall be subclassified into production forestlands and
protection forest.

(k) “Forest reservation” refers to a forestland which has been set aside by law
for a specific purpose or purposes, such as watershed reservation, military
or civil reservation.

() “Fuelwood species” refers to tree species of high calorific value and are
suitable for cooking, heating or power generation.

(m)"Green Park” refers to an area designated on the subdivision plan of
forested land reserve for public use as an ecological refuge Such green
park shall be devoted exclusively to the planting and growing of trees of
any kind, flowering or ornamental plants and shrubs, or plants of scenic,
aesthetic and ecological values.

(n) “Indigenous peoples” refers to a tribe or indigenous Filipinos who have
continuously lived as communities on communally bounded and defined
land since time immemorial and have succeeded in preserving, maintaining
and sharing common bonds or languages, customs, traditions and other
distinctive cultural traits.

(0) “Integrated Forest Management Agreement (IFMA) refers to an agreement
entered into by the DENR and a qualified person to occupy, possess in
consideration of a specified rental, any forestland of the public domain in
order to establish an industrial forest.

(p) “Military reservation” refers to a forestland proclaimed or reserved by the
President or by law for military purposes such as air base, campsite, docks
and harbors, training camp, firing range, naval base, target range and
wharves.

(q) “National park” refers to lands of the public domain classified as such in
the 1987 Philippine Constitution which include all areas under the NIPAS
pursuant to Republic Act No. 7586 primarily designated for the conservation
of the native plants and animals, their associated habitats and cultural
diversity. :

(r) “Natural Forest” refers to a forest composed of indigenous, native or
endemic trees not planted by man.

(s) “Private lands” refer to lands covered by either administrative or judicial
titles such as free patent, homestead, and saies patent, and Torréns title
obtained under Act No. 496 or the Land Registration Act, as amended.

(t) “Reforestation” refers to the planting of trees or artificial establishment of
forests on lands that were previously forested.

(u) “Silviculture” refers to the scientific method of establishment,
development, reproduction, care and maintenance of forest trees.

(v) “Subdivision Project” refers to a tract or parcel of land registered under the
Land Registration Act, a amended. partitioned primarily for residential
purposes into individual lots, with or without improvement thereon, and
offered to the public for sale, in cash o: ‘tallment terms. It shall include
all residential, commerciai, industrial and recreational! areas, as well as
‘open spaces and other community and public areas in the project.

CHAPTER I
PROGRAM IMPLEMENTATION

SEC. 6. Implementing Agencies and Institutions. — the program shall be
implemented through an inter-agency committee with the DENR as the lead agency
and members from the following agencies with functions as follows:


(a) The Department of Environment and Natural Resources (DENR) and
its network of Regional/Provincial/Community Environment and
Natural Resources Offices (RENROs/PENROs/CENROs) shall be the
overall planning, implementing, coordinating and monitoring agency
of the Billion Trees Program, particularly in the identification,
selection and allocation of sites; establishment of modern
greenhouses and nurseries for the distribution of quality planting
materials; planting of the right species in particular areas:
prioritization of critical watersheds; application of efficient
reforestation technologies; adoption of the necessary steps to
protect and maintain newly reforested areas, remaining natural
forests, national parks and protected areas; maintaining a data base
on the number of areas under the program including the identities
and addresses of participants for monitoring and evaluation and
market linkaging especially with the international market; conduct
of research, information and education campaigns (IEC); and
issuance of permit to harvest and transport timber from plantations:
Provided, That within civil and military reservations and private
landholdings of other government agencies, the DENR shall
coordinate with the concerned government agencies and the latter
shall likewise be responsible in monitoring and protecting the
plantations established pursuant to this Act. The DENR shall provide
data to the LGUs pertaining to the priority reforestation areas under
this Act for inclusion in the development plans of concerned LGUs;

(b) The Department of Interior and LOCAL Government (DILG) AND LGUs
shall mobilize the police and help organize communities and other
sectors of society to participate in the Billion Trees Program.
Concerned LGUs shall. coordinate with the DENR in the deputization
of members of the PNP who shall be responsible for joint forest
protection activities with the DENR. The LGUs shall ensure close
coordination with the DENR to initiate the necessary exterision
service, information and education campaigns and organizing
communities and concerned civil society in undertaking relevant
programs and activities The LGUs shall be responsible in the
distribution of seedlings and other planting materials, and the
establishment and development of modern greenhouses and
nurseries as part of their extension services in their respective
constituencies;

(©) The Department of National Defense (DND) shall be responsible in
reforesting denuded portions of military reservations and other areas
designated jointly with the DENR and maintaining and protecting
forest areas, both natural and plantation. It shall also assign full-
time personnel to protect forest areas, in accordance with Section
25 hereof;

(d) The Department of Agriculture (DA) shall provide technical
assistance to the participants of the Billion Trees Program. It shall
provide participants the know-how on proper and sustainable
agricultural technologies and practices. It shall utilize part of the
Agricultural Competitiveness Enhancement Fund (ACEF) for the
establishment of modern greenhouses and seedling nurseries in
strategic upland and lowland areas for the production, promotion
and distribution of quality planting materials including fruit trees:


(@) The Department of Agrarian Reform (DAR) shall provide technical
assistance to the beneficiaries of the Comprehensive Agrarian
Reform Program (CARP) who will utilize portions of their lands for
the development of fruit tree plantations or production of
commercial tree species. Part of the Agrarian Reform Fund for
upland development and the proceeds from the recovery of the
Marcos wealth shail also be utilized for the establishment of modem
greenhouses and seedling nurseries for the distribution of planting
materials including healthy fruit tree seedlings and commercial tree
species to CARP beneficiaries and neighboring communities:

( The Department of Education (DepEd), Commission on Higher
Education (CHED) and TESDA shall strengthen environmental
education through the provision of additional learning modules and
issuances in establishing seedling production stations or nurseries in
the campuses of elementary, secondary, and state colleges and
universities, mobilizing the students to plant trees in appropriate
vacant areas in their localities, adopting post planting care
measures, and encouraging the students and their families to
participate in the Billion Trees Program;

(9) The Department of Public Works and Highways (OPWH) shall be
responsible for the planting of appropriate and available species on
strips of land along national and arterial roads, including their
maintenance and protection;

(h) The Department of Tourism (DOT) shall identify and promote eco-
tourism in forest plantations in coordination with the DENR;

(0

Other government agencies such as the National Power Corporation
(NPC), the National Irrigation Administration (NIA) and the Philippine
National Oil Company (PNOC) with administrative jurisdiction over
tracts of public land and critical watersheds shall also rehabilitate
and reforest lands under their respective jurisdictions. - They shall
develop modern greenhouses and nurseries, and establishment of
model sites;

Gj) The State Universities and Colleges (SUCs) with administrative
jurisdiction over tracts of public land and critical watersheds shall
also rehabilitate and reforest lands under their respective
jurisdictions. They shall likewise develop programs/projects that
would promote appropriate silvicultural practices, production,
utilization, processing and marketing techniques through IEC and,
training;

(k) The Department of Trade and Industry (DTI) shall promote
understanding and implementation of trade policies and incentives
on production, processing and marketing of timber related products
and specific crops and fruit trees:

0

The Philippine Information Agency (PIA) shail create public
awareness on the Program and its components, and shali be
responsible in producing information materials and their
dissemination through the use of the mass media.

SEC. 7. Role of Nongovernmenta! Organizations (NGOs). — The NGOs and


academic institutions shall be tapped to handle relevant services, especially social
and technical training and monitoring and evaluation of the reforested area:
Provided, That NGOs which handled the training shall not conduct the monitoring and
evaluation of the reforested area.
CHAPTER III
REFORESTATION OF PUBLIC FORESTLANDS

SEC. 8. Contracts and Agreements. —Within forestlands under the jurisdiction
of the DENR, the rights and obligations of the participants shall depend on whether
the purpose of afforesting reforesting or rehabilitating the area is for production or
protection. The contracts for public reservations and other public lands under the
jurisdiction of agencies of the national government or LGUs shall likewise consider
the primary purpose for which said reservations were established or acquired and the
actual use and condition of specific areas.

The contract or agreement shall be granted for twenty-five (25) years,
renewable for another twenty-five (25) years subjegt to the terms and conditions in
the contract and subsequent rules and regulations promulgated in accordance with
the pertinent provisions of this Act.

May authorize the Regional Executive Director (RED) to adopt additional terms,
conditions, rights and other obligations in the contract consistent with the intent and
purpose of this Act

SEC. 9 Rights and Obligations of Participants in Production Forestlands. - The
participants of the Billion Trees Program shall enjoy the right to harvest, process, sell,
or otherwise utilize the products grown within production forestlands or use portions
of the contracted area for eco-tourism purpose.

The Participants shall have following obligations:

(a) Practice appropriate silvicultural system or harvesting cutting
regimes for mature trees in accordance with approved
management plans and replant harvested areas within one
year after cutting;

(b) Promote forest biodiversity by planting indigenous and
conserving naturally growing forest species. Fuelwood trees
can be planted to add to species diversity and to eliminate the
cutting of prime wood species for fuel and charcoal purposes;

© Pay the government share to the DENR or the government
agency that has administrative jurisdiction over the
forestland, through the production share from the sales of
forest products harvested as stipulated in the Billion Trees
Program Contract; and

(d) Ensure high survival rate of planted seedlings and maintain
and protect trees until maturity.

SEC. 10. Other Incentives. - The participants shall also enjoy the following
incentives:

(a) Use the reforested area as an eco-tourism spot. Holders shall have
the right to make use of the reforested and protected area as an
eco-tourism spot. They may collect gate/entrance fee and put up
income-generating auxiliary services for the maintenance and
conservation of the area. Operation of the area shall be coordinated
with the DOT for tourist promotion and the LGUs for infrastructure


support and collection of appropriate taxes.

(b) Market linkages for agricultural output. The DA, in coordination with
the DTI's regional and provincial offices and agribusiness research
organizations of the private sector, shall update upland farmers in
market prices of fruits and other agricultural products, and assist
them in identifying buyers and marketing outlets.

(c) Market linkages for forest products. The DENR and other concerned
agencies and groups shall update the participants on the location and
availability of domestic and foreign buyers for particular forest
products, including the specified product quality.

(d) Option to turn over the management and the right to harvest the
reforested land to the DENR qualified prospective participants at
least after five years of the contract. This is particularly applicable
in plantations and eco-tourism spots where the trees are better left
to grow and mature beyond the fifty-year constitutional limit.

(e) Payment of real property tax. Holders of reforestation contracts
under the program and awardees of other people-oriented forestry
Programs shal! be exempted from paying of real property tax

(f) Right to securitize the growing trees. The participants may use the
plantation of at least five years old with adequate forest stand, in
the issuance of asset-backed securities, such as bonds and stocks, to
finance the reforestation of another area. Said asset-backed
securities shall enjoy tax breaks and other incentives, whenever
possible, already provided under existing laws.

SEC. 11. Fruit Tree Plantation in Production Forestlands. —Every area planted
with forest species shall entitle the participant to devote not more than ten (10%) of
the area for the raising of fruit trees and other agricultural crops. The land tenure
over such plantation of fruit trees or agricultural crops shall be co-terminous with the
terms of the contract.

CHAPTER IV
REFORESTATION OF MILITARY RESERVATIONS.

SEC. 12. Reforestation of Denuded Military Reservation Areas. All personnel
of the Armed Forces of the Philippines (AFP) stationed temporarily or permanently in
military reservation areas shall be involved in reforesting denuded portions of the
area not directly utilized for military and training purposes. Reforestation activities
and maintenance costs shall be funded by the DND.

SEC. 13. Rights, Obligations and Incentives. ~The military and police personnel
participating in the reforestation program shall enjoy rights and incentives and
comply with certain obligations, as follows:

(a) Rights and obligations of participants within production forestlands as
enumerated under Section 9 hereof;

(b) Incentives enumerated under Section 10 hereof;

(c) Special allowance as compensation for particular tasks or phases of the
contract they have completed:

(d) Acquisition of shares of stocks of the cooperative/corporation to be formed


representing the economic value of trees planted; and

(e) Earning from said stocks and revenue shares from the sale of forest
products generated by the plantation as their retirement credits in the
future.

‘SEC. 14. Report to the DENR. — The AFP and the PNP shall submit an annual
report the DENR on the progress of their projects including the areas they have
reforested and the results of their operations in forest protection.

CHAPTER V
INVOLVEMENT OF PRIVATE INDIVIDUALS AND CORPORATIONS

SEC. 15. Adoption of a Reforestation Project. — Private individuals,
corporations, foundations, foreign and local NGOs, and similar institutions interested
to adopt a reforestation project shall be provided with the pertinent assistance and
technical support by the DENR, government agencies with administrative jurisdiction
over watersheds and forestland reservations, and local government officials. The
assistance funds coming from the abovementioned donor individuals, organizations or
institutions may be channeled directly to the implementers and beneficiaries and
assisting local NGOs. The DENR shall be informed of such arrangement for assistance
in identifying priority areas for reforestation. If funds are channeled through the
DENR, the latter shall enter into a Memorandum of Agreement (MOA) with the donor
to account for wise and proper spending of the donated funds.

SEC. 16. Adoption of a Forested Area for Protection. — The private sector, in
coordination with the DENR and government agencies with administrative jurisdiction
over watersheds and forestland reservations, may adopt a particular forested area,
like portions of a national park or watershed for maintenance, protection and
biodiversity conservation through a MOA with the DENR. The mechanics for the
channeling of funds as specified in Section 15 above shall be adopted. The DENR and
government agencies with administrative jurisdiction over watershed and reservations
shall identify and publish areas available for adoption in each region or province or
specific watersheds or reservations.

SEC. 17. Development of Private Forestry and Incentives. — Owners of private
lands who plant forest trees in their property shall enjoy the following incentives:

(a) Technical assistance from the DENR on proper silvicultural practices;

(b) Update on forest products markets and prices by the DENR and wood
producer's groups or associations:

(c) Exemption from forest charges under Republic Act No. 7161 and value-
added tax (VAT) for the sale, barter or exchange of timber and forest
products, and from real property tax under Republic Act No. 7160;

(d) Priority in credit assistance granted by government-owned and controlled
corporations at reasonable interest rates; and

(@) Right to export timber and other forest products harvested from planted
trees , subject however, to existing rules and regulations governing trade
policies and incentives as provided for the DTI.

For certification purposes, tree plantations shall be registered with the Local
DENR field offices which shall maintain permanent registry books.

SEC. 18. Planting of Fuelwood Species. — The DENR shall disseminate
technology on the planting of fuelwood species not only to lessen the pressure on the


cutting and harvesting of prime wood species for firewood purposes but also to meet
fuelwood requirements and create livelihood opportunities and sources of income for
the communities without impairing the integrity of the environment.

SEC. 19, Ownership of Planted Trees along Highways. —Those who planted and
maintained the trees along highways, roadsides and other vacant portions of public
A&D lands shall have the exclusive right to harvest and utilize the trees when these
mature except the first line of trees along the roadside which shall be under the
protection of the DPWH. The DENR shall allocate among interested individuals and/or
groups the areas available for this arrangement and issue the necessary papers
granting such exclusive rights and ownership to the awarded party following the
guidelines on Tree Certification Ownership (TCO) to be issued by the Secretary of the
DENR. Should the local office of the DENR and the LGU decide to keep the other trees
for ecological and beautification purposes, the parties who planted and protected the
trees shall be paid a sum equivalent to the market value of the trees at the time
jurisdiction is transferred to the DENR or the LGU and the trees shall be properly
marked and protected.

SEC. 20. Recognition and Awards. —The inter-agency committee shall advertise
the names of participating corporations, agencies and NGOs and their environmental
projects. Awards and recognition activities shall be determined by the DENR in
collaboration with other government agencies in the implementing rules and
regulations (IRR) to be promulgated pursuant to Section 35 of this Act

CHAPTER Vi
REFORESTATION BY LOCAL GOVERNMENT UNITS

SEC. 21. Seedling Nursery in Every City/Municipality. - Modern seedling
nurseries and greenhouses shall be established in every city or municipality. For this
purpose, LGUs shall be allowed to enter into contract with private enterprises.
Greenhouse and nursery supervisors, whose positions shall be created by the LGUs,
shall be hired and designated to establish and oversee such nurseries, which shall also
contain both forest and fruit tree species. Seeds shall be secured from Seed
Production Areas (SPAs) certified by the DENR.

SEC. 22. Establishment of Mini-Forest Parks in Every City/Municipality. ~ Every
city or municipality shall establish a mini-forest park or multi-purpose park such as
botanical garden. Each park shall be at least half a hectare or five thousand square
meters (5,000 sq.m.) in area whenever practicable or to the extent possible and with
particular emphasis on the planting and preservation of indigenous species. Each city
or municipality shall submit to the DENR the list of available lands for such purpose
for such purpose and include in its yearly budget the necessary funds for the
establishment and maintenance of urban green parks. The DENR shall work closely
with local executives to ensure compliance with this provision and coordinate with
various agencies of the national government and the private sector to enhance the
implementation of urban forestry. Roadsides and islands, campuses, office
compounds, cemeteries, riverbanks, shorelines and other areas shall also be planted
with trees. Students, employees and members of civic and people’s organizations
shall be invited to undertake the activity. The maintenance and protection of the
trees shall be closely coordinated by the LGUs. the DENR and all other concerned
agencies.

SEC. 23. Establishment of Mini-Forest Parks in Subdivision Projects. - Every
Subdivision project to be developed after the promulgation of this Act shall include
the establishment of green parks, taking into account the required six percent (6%) of
the gross area for parks and open spaces, which shall be planted to trees by the


developers at their own expense.

SEC. 24. Recognition of Outstanding and Greenest City or Municipality. Three
(3) years after the effectivity of this Act, a city or municipality in each province
having the best mini-forests parks and reforested idle portions of A&D land shall be
given recognition and an award by the DENR and shall be promoted by DOT as among
the priority Eco-tourism spots in the country: Provided, that the necessary tourism
infrastructure and services are already in place before the area is promoted for eco-
tourism.

CHAPTER Vil
FOREST PROTECTION

SEC. 25. Forest Protection Teams. —The Secretary of the DENR shall enforce
forestry laws to protect the remaining natural forests and plantation forests from
illegal loggers, poachers, kaingin farmers, pests and disease, fires and other factors
that destroy the forest. Forest protection teams under the DENR shall be organized
consisting of personnel drawn from the DENR, the AFP and the PNP including LGU
deputized local leaders on a full-time basis. They shall be assisted by personne! from
other government agencies and SUCs with administrative jurisdiction over watersheds
and forestland reservations, civilian volunteers, concerned NGOs and members of
accredited people’s organizations. Equipment necessary for forest protection shall be
acquired by the DENR aside from equipment support provided by other units. These
forest protection teams shall conduct intensive intelligence operations, regular aerial
photography and surveillance to detect, identify, apprehend forest criminals for
prosecution, and confiscate illegally cut timber and forest products, conveyances,
tools and equipment.

SEC. 26. Incentives. - Members of forest protection teams shall be granted
incentives, to include but not limited to higher base pay, free legal assistance, hazard
pay, uniform allowance, group insurance, and a reward system of twenty percent
(20%) of the value of confiscated materials.

SEC. 27. Forest Protection Equipment. —The DENR, the DILG and the DND shall
allocate in their respective annual budgets sufficient funds to provide the forest
protection teams access to modern technology and equipment such as aircraft, global
positioning systems, land transportation vehicles, communication facilities, ground
fire fighting equipment, and pesticides against forest pest and diseases

SEC. 28. Control of Forest Conversion to other non-forest use. -The DENR, DA
and the Department of Agrarian Reform (DAR) shall adopt measures to prevent illegal
conversion of forestland into other non-forest use. The DENR shall cause the
cancellation of instruments issued over such lands and repossess said lands for
reforestation purposes: Provided, That the farmers therein shall be encouraged to
participate in the Billion Trees Program.

‘CHAPTER VII!
FINANCING THE PROGRAM

SEC. 29. Program Funding. —In addition to funds allocated to reforestation and
forest protection activities of the national government under the General
Appropriations Act, the Billion Trees Program shall be financed primarily from any
available official development assistance (ODA} including but not limited to, the
following


(a) private sector investment in reforestation and tree plantation projects;

(b) joint venture operations between counterpart forest resource agencies of
the Philippines and an assisting country, including those qualified under the
Unitgd Nations Framework Convention on Climate Change (UNFCCC) or the
Kyotg Protocol

(c) funding schemes under Republic Act No. 6975 or the Build-Operate and
Transfer (BOT) Law, as amended by Republic Act No. 7718:

(d) direct project investment by LGUs, private corporations, cooperatives, and
where allowed, individuals on reforestation proposals approved by the
DENR; and

(e) securitization of grown trees which are at least five years old to be
undertaken by the project investor, which may be treated as asset-backed
securities or bonds, to finance the reforestation of other denuded areas.

Provided, That any forest development project which shall have foreign equity
investment such as direct investment, joint and/or BOT reforestation projects, shall
conform with the 60/40 requirement provided under the Constitution of the
Philippines.

SEC. 30. Fund Management. —In the case of contract reforestation managed by
the DENR, the funds shall be channeled by the Department of Budget and
Management (DBM) through the Land Bank of the Philippines (LBP), the Development
Bank of the Philippines (DBP), or the LBP/DBP accredited rural banks. Funding shall
be discontinued if the allocated funds are found misused or scheduled activities not
followed. The DENR shall advise the banks on the amount and the period of release of
funds to the community contractors.

CHAPTER IX
CRIMINAL OFFENSES AND PENALTIES

SEC. 31. Misuse of Funds. — Any contractor, officers of cooperatives,
government officials including local officials and employees, who shall unlawfully and
maliciously divert the funds under this Act for purposes other than intended, shall be
criminally prosecuted and, if found guilty, shall be punished with imprisonment of not
less than four months but not more than four years.

‘SEC. 32. Other Prohibited Acts and Penalties. -

(a) Any person other than the participant who enjoys the right to harvest
the trees planted, who shall cut or gather trees from reforested area
shall be fined with twice the current market value of the trees
removed and its environmenta! cost, and/or imprisoned for a period
of not less than six months and one day to six years.

(b) ‘Any person who shall violate the provisions of Section 23 hereof, or
any rules and regulations promulgated thereon shall be punished with
six months and one day to six years imprisonment, or with a fine
equivalent to the value, at prevailing valuation, of the area
representing ten percent (10%) of the total area of the subdivision
project developed for residential, industrial or commercial purposes,
or both imprisonment and fine at the discretion of the court:
Provided, That in the case corporations, partnerships, cooperatives or



associations, the president, manager or administrator or the person
in-charge of the administration of the business shall be criminally
responsible for such violation.

(c) Any person, for personal gain or profit, who shall intentionally cut,
remove, or in any manner destroy, set destructive fire, or cause
damage to the trees and forest growth found therein, shall, upon
conviction, be fined the amount of not less than Ten Thousand pesos
(P10,000.00) nor more than One hundred thousand pesos
(100,000.00) and punished with imprisonment for a period of not
less than two years and one day, nor more than four years for each
such offense: Provided, That the maximum penalty shall be imposed
upon the offender who repeats the same offense and double the
maximum of the penalty upon the offender who commits the same
offense for the third time.

(d) Any person who shall, without permit, occupy for any length of time
any portion of the mini-forest reserve or who mutilates, defaces,
destroys objects of natural beauty or of scenic value «within the
reserve, or who assists, aids or abets any other person to do so, or
refuses to vacate the reserve when ordered by the duly authorized
representative of the DENR or concerned LGU, shall, upon conviction,
be fined not less than Five thousand pesos (5,000.00), ner more than
Fifty thousand pesos (P50,000.00) and punished with imprisonment
for a period of not less than six months, nor more than two years.

In all cases of illegal occupancy, the court of competent jurisdiction shall
further order the eviction of the offender from the land and the forfeiture to the
government of all improvements made and all vehicles, domestic animals and
equipment of any kind used in the commission of the offense. If not suitable for use
by the DENR, said vehicles, domestic animals, equipment and improvements shall be
sold at public auction, the proceeds of which shal! accrue to the DENR as additional
funds for the implementation of this Act.

In case the offender is a government official or employee, he shall, in addition
to the above penalties be automatically dismissed from office and permanently
disqualified from holding any elective or appointive position :

SEC. 33. Premature Cutting of Planted Trees and Noncompliance with Other
Conditions of the Billion Trees Program Contract. — Holders of the Billion Trees
Program Contract who shall prematurely cut the trees up to one-fifth (1/5) of the
area without any authority from the DENR, or carry-out other activities not in
accordance with approved management plan , shall be disqualified from their rights
under the contract and shall not be compensated for the value of the remaining
standing trees. The jurisdiction of the reforested area shall revert to the DENR. In
addition, if the estimated value of the felled trees is larger than the real investment
of the government in the area, such guilty party shall pay the difference in value; be
ineligible to participate in future government reforestation and other forestry-related
activities; and shall be criminally prosecuted and imprisoned for a period of not less
than four months, but not more than four years.

CHAPTER X
ADMINISTRATIVE PROCEDURES AND SPECIAL CLAUSES

SEC. 34. Monitoring and Evaluation. — Periodic monitoring and evaluation of
activities under the program shail be conducted by the DENR in coordination with the



committee member agencies or an independent entity contracted for the purpose,
whichever is practical, to ensure that Proper use of resources and desired targets are
accomplished on time. Participating agencies shall submit progress reports to the
DENR. The annual report shall be prepared by the DENR for submission to the Office
Of the President copy furnished members of the inter-agency committee.

SEC. 35. Promulgation of Rules and Regulations. ~The Secretary of the DENR,
in coordination with the Secretaries and heads of identified participating agencies,
shall prepare and publish the rules and regulations implementing this Act within sixty
(60) days from the date of its effectivity.

SEC. 36. Separability Clause. — If any Provision of this Act shall be held
unconstitutional, the remaining portions not otherwise affected shall remain in full
force and effect

SEC. 37. Repealing Clause. - All laws, executive orders, rules and regulations,
or parts thereof inconsistent with any of the provisions of this Act are hereby
amended, repealed or modified accordingly. .

SEC. 38. Effectivity. —This Act shall take effect after its complete publication
in at least two newspapers of general circulation

Approved,