HOUSE JF .<

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

907 REGISTRATION UNIT

House Bill No. BILLS AND INDEX SERVICE

Introduced by Honorable Fredenil H. Castro

AN ACT
TO PROTECT, CONSERVE, UTILIZE, DEVELOP AND SUSTAINABLY MANAGE FOREST
RESOURCES AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Section 16, Article II of the 1987 Constitution mandates that “(7)he State shall protect and
advance the right of the people to a balanced and healthful ecology in accord with the rhythm and
harmony of nature.”

The degradation and damage of our forest resources is undeniable. The recent months have
presented us news about forest fires, landslides, illegal loggings, and killings of protected and
endangered species, not to mention the alarming effects of global warming. It is upon the aegis of
the foregoing that this bill is sought to be approved. This bill, a product of the long researc!
unselfish efforts and unwavering devotion to the protection of forest resources of Haribon
Foundation, aims to establish a forest resource management system to ensure the continued and
efficient use of forest resources in adherence to the long established principle of inter-generational
responsibility.

Accordingly, the approval of this bill is fervently sought.


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

Seventeenth Congress
First Regular Session

“)
House Bill No. 9cy

Introduced by Honorable Fredenil H. Castro

AN ACT
TO PROTECT, CONSERVE, UTILIZE, DEVELOP AND SUSTAINABLY MANAGE
FOREST RESOURCES AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. This Act shall be known as the "Forest Resources Act of 2016".

SECTION 2. Scope and Coverage. The provisions of this Act shall apply to all lands of the
public domain classified as needed for forestry purposes, all forestlands, all forest resources
found in untitled agricultural lands and in private lands: Provided, That all forests and forest
resources found in protected areas established under the National Integrated Protected Areas
System (NIPAS) shall be sustainably managed and developed following the provisions of
Republic Act No, 7586 or the NIPAS Act of 1992; Provided further, That the rights of
indigenous cultural communities or indigenous peoples to their ancestral domains shall be
respected.

All forestlands and forest resources therein under the administrative jurisdiction of the
Autonomous Region of Muslim Mindanao (ARMM) shall be managed, developed and
conserved in accordance with the Regional Sustainable Forest : Management Act of 2003 of
the ARMM.

SECTION 3. Basic Polici

a. Pursuant to the provisions of the Constitution to promote the general welfare and

social justice in all phases of national development, to protect and advance the right of

the Filipino people to a balanced and healthful ecology in accord with the thythm and

harmony of nature, and to conserve and develop the patrimony of the nation, the State

hereby adopts the following policies relative to the management, development and
conservation of forests and the resources therein:

i. Within five (5) years from the passage of this Act, the specific limits

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In carrying out the above policies, the following strategies shall be pursu
1.

of forestlands shall be fixed and demarcated and thereafter, shall not
be altered except through an Act of Congress; The Congress shall as
soon as possible, also determine, by law, the specific limits of
forestlands and national parks, marking clearly their boundaries on the
ground. Thereafter, such forestlands and national parks shall be
conserved and may not be increased nor diminished, except by law.
The Congress shall provide for such period as it may determine,
measures to prohibit logging in endangered forests and watershed
areas;

ii, The use and conservation of forest resources shall bear a social,
ecological biological and economic functions, responsibility, and
accountability to promote the common good of the present and future
generations;

iii, The guiding principle in the sustainable and integrated management,
development, and conservation of forest resources shall be focusing on
these resources and on the people who manage, conserve, and benefit
from them:

iv. Biodiversity protection and conservation of wildlife resources and
their habitats, consistent with Republic Act No. 9147 shall be a
paramount consideration in forest management.

v. Genetically Engineered (GE) and transgenic trees pose the gravest of
dangers to forest ecosystems and violate the Convention on Biological
Diversity.

b. The state shall protect the rights of indigenous cultural
communities/indigenous peoples to their ancestral domains to ensure their
economic and social and cultural well-being and shall recognize the
applicability of customary laws in governing property rights or relations in
determining the ownership and extent of ancestral domains;

c. The State shall promote social justice in all phases of national development;

d. The State shall encourage non-governmental, community-based, or sectoral
organizations that promote the welfare of the nation;

e. The State shall ensure the autonomy of local governments; and,

f The State shall pursue an independent foreign policy. In its relations with
other states, the paramount consideration shall be national sovereignty,
territorial integrity, national interest, and the right to self-determination.

The watershed continuum as the basic forestland management unit- Forestlands shall
be managed, developed and conserved utilizing watershed continuum as the basic
management unit and under the principles of sustainable and multiple-use
management, including conservation of biological diversity:

Multi-sectoral participation- The participation of all direct and indirect, especially
local, stakeholders in sustainable forestland conservation, management, and
development shall be mandatory, Equitable sharing of the benefits derived from
forestlands and the resources therein shall be ensured at all times;

Community-based forest management (CBFM) as a principal strategy-Vesting access
rights and responsibilities to forest resident or forest-dependent families, local


communities, and indigenous peoples to undertake the management and development
of appropriate forestland resources on a sustainable basis shall have precedence over
other strategies;

4. Protection of forests and natural resources as a priority concern- The protection of
forests and the natural resources therein shall be given priority concem in order to
ensure environmental stability. conserve biological diversity, improve ecosystem
functions and services, and provide long-term ecological and economic benefits;

5. Reforestation as a priority measure- Reforestation shall be undertaken as a priority
measure to restore the ecosystem functions and services of forests as well as improve
the economic and ecological benefits of local communities concerned;

6. Security of tenure of stakeholders- Pursuant to the principles of sustainable and
multi-use forest management and equitable access to forest resources, a secured
tenure shall be guaranteed to stakeholders concerned; and

7. Professionalism in forest service - A dynamic, professional and people- oriented
forest service strongly adhering to conservation principles shall be established and
fully supported by the State,

SECTION 4. Definition of Terms. As used in this Act, the following terms shall be defined
as follows:

a. "Agroforestry" refers to a strategy for the sustainable management of land
which increases their overall productivity by properly combining agricultural
crops and/or livestock with forest crops simultaneously or sequentially through
the application of management practices which are compatible with the local
climate, topography, slope, soil, as well as the cultural patterns or customary
laws of the local communities;

"Agricultural lands" refers to Alienable and Disposable (AdD) lands of the

public domain which have been delimited, classified and declared as such,

pursuant to the provisions of Commonwealth Act No. 141, as amended,
otherwise known as the Public Land Act;

"Ancestral Domains" refers to all arcas generally belonging to indigenous
cultural communities/indigenous peoples (ICCs/IPs) comprising lands, inland
waters, coastal areas, and natural resources therein, held under a claim of
ownership, occupied or possessed by ICCs/IPs, by themselves or through their
ancestors, communally or individually since time immemorial, continuously to
the present except when interrupted by war, force majeure or displacement by
force, deceit, stealth or as a consequence of government projects or any other
voluntary dealings entered into. by government and __ private
individuals/corporations, and which are necessary to ensure their economic,
social and cultural welfare. It shall include ancestral lands, forests, pasture,
residential, agricultural, and other lands individually owned whether alienable
and disposable or otherwise, hunting grounds, burial grounds, worship areas,
bodies of water, mineral and other natural resources, and lands which may no
longer be exclusively occupied by ICCs/IPs but from which they traditionally
had access to for their subsistence and traditional activities, particularly the
home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators;

d. “Ancestral Lands" refers to land occupied, possessed and utilized by
individuals, families and clans who are members of the ICCs/IPs since time



immemorial- by themselves or through their predecessors-in-interest, under
claims of individual or traditional group ownership, continuously, to the
present except when interrupted by war, force majeure or displacement by
force, deceit, stealth, or as a consequence of government projects and other
voluntary dealings entered into by government and private individuals!
corporations, including, but not limited to, residential lots, rice terraces or
paddies, private forests, swidden farms and tree lots;

"Assisted Natural Regeneration" or "ANR" covers any set of activities that
enhance the natural processes of forest regeneration. These include promoting
the natural establishment and subsequent growth of indigenous forest trees,
whilst preventing any factors that might harm them, e.g. competition from
weeds, browsing by cattle, fire etc. ANR relies on existing natural processes; it
requires less labor input than tree planting and is therefore a very cheap way to
restore forest ecosystems. ANR is appropriate wherever the natural processes
of forest regeneration are, to some extent, already happening. At least few seed
trees/ mature seed-bearing rainforest trees should exist nearby to provide seed
rain in the area. Seed-dispersing animals should remain common in the
vicinity. Sites which already support a high density of tree saplings and
sprouting tree stumps are particularly suited to ANR.

"Biological diversity or biodiversity" refers to the variability and variety
among living organisms including, infer alia, terrestrial, marine and other
aquatic ecosystems and the ecological complexes of which they are part. This
includes diversity within the species (genetic diversity), between species
(species diversity), and among ecosystems (ecosystem diversity);

"Climate change" refers to a change in climate that can be identified by
changes in the mean and/or variability of its properties and that persists for an
extended period typically decades or longer, whether due to natural variability
or as a result of human activity;

"Commercial logging" refers to the cutting or felling of trees for the purpose
of disposing the cut or felled logs for monetary profits beyond survival and
subsistence;

"Communal forest” refers to a tract of forestland set aside and established for
and under the protection, administration, and management of a city,
municipality, or barangay as a source of wood material for fuel, shelter, and
manufactured products; as source of water for the community; and as an area
for ecotourism and/or environmental protection or socio-economic projects of
local government units consistent with the policies and objectives of this Act
and principles of sustainable development;

"Community-Based Forest Management Strategy" refers to the strategy to
improve the well-being of forest dependent communities, and at the same time
ensure sustainable management, rehabilitation and protection of forestlands
and the resources therein, through the active participation of various
stakeholders;

"Conservation" refers to the planned protection and management of forests,
wildlife and other forest resources so as to prevent waste and ensure future
use:

"Conveyance" refers to any vehicle, vessel, device or animal used in gathering
and/or transporting forest products;



m. "Co-management agreement" refers to an agreement entered into by the
DENR and a local government univs to protect, restore, develop or manage
forestlands, including mangroves and its forest resources, within the
geographic jurisdiction of such local government unit/s consistent with the
provisions of this Act:

n, "Co-production agreement" refers to an agreement entered into by and
between a qualified person and the government, in accord with the 1987
Constitution, for the former to develop, utilize, and manage, consistent with
the principles of sustainable development, land or a portion of a forestland
wherein both parties agree to provide inputs and share the products or their
equivalent cash value;

0. "Critical habitat" refers to a place or environment where species or subspecies
naturally occur or has naturally established its population that are crucial to the
survival of a species and essential for its conservation;

p. "Critical watershed” refers to areas designated by the Secretary pursuant to the
Wildlife Resources Conservation and Protection Act and for their ability to
supply water for domestic, agriculture and/or industrial use;

‘Degraded forests” refers to forests with varying degrees of disturbance or loss
of structure, function, species composition and productivity of less than 60%
forest cover;

r. "Delimitation" refers to the establishment of permanent boundaries between
forestlands, national parks/protected areas and agricultural lands as a result of
demarcation;

s. "Delineation" refers to the establishment of boundaries between forestlands,
national parks/protected areas and agricultural lands as a result of a conduct of
site investigation,reconnaissance and field verification in accordance with the
criteria set by the Department;

t. "Demarcation” refers to the establishment of boundaries using visible markers,
monuments or known natural features/landmarks, among others, as result of
the actual ground delineation;

u. "Denuded forestlands" refers to forestlands that are devoid of forest tree cover;

v. "Department" refers to the Department of Environment and Natural Resources
(DENR);

w. "Environmental Impact Assessment" or "EIA" refers to the process of
predicting the likely environmental consequences of implementing a project or

undertaking and designing the appropriate preventive, mitigating, or

enhancement measures;

"Environmental Compliance Certificate" or "ECC" refers to the document

issued by the Department certifying that a proposed project or undertaking will

not cause a significant negative impact on the environment; that the proponent
has complied with all the requirements of the Environmental Impact

Assessment System; and that the proponent is committed to implement its

approved Environment Management Plan found in the Environmental Impact

Statement (EIS) or mitigation measures identified in the Initial Environmental

Examination (IEE);

y. "Environmental Impact Statement System" or "BIS System" refers to the
organization, administration, and procedures that have been institutionalized
pursuant to Presidential Decree No. 1586 for purposes of assessing the



significance of the effects of any project or undertaking on the quality of the

physical, biological, and social-economic environment and designing the

appropriate mitigating and enhancement measures;

"Environmentally Critical Project” refers to project or program that has high

potential for significant negative environmental impact;

aa. "Forest" refers to an ecosystem or an assemblage of ecosystems dominated by
trees and other woody vegetation; a community of plants and animals
interacting with one another and its physical environment. It shall consist of
trees with overlapping crown of 60-100% forest cover;

bb. "Forest guard" refers to any public officer who by the nature of his
appointment or the functions of the position to which he is appointed is
delegated by law and regulations or commissioned by competent authorities to
execute, implement or enforce the provisions of this Act and other related laws
and regulations;

ce. "Forest products" refers to goods and services derived from forest such as, but
not limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood, bark,
tree top, resin, gums, wood oil, honey, bees wax, nipa, rattan, or other forest
growth such as grass, shrub and flowering plants, the associated water, fish,
game, as well as its scenic, historical, educational, social and ecological value;

dd, "Forest resources" refers to all resources, whether biomass such as plants and
animals including its by-products and derivatives, which can be a raw
material, or non-biomass such as soil, water, scenery, as well as the intangible
services and values present in forestlands or in other lands devoted for forest
purposes;

ce. "Forest/Forest-Dependent Community" refers to a group of people residing
inside or immediately adjacent to a particular forestland who are largely or
partly dependent on the forest resources found therein for their livelihood;

ff. "Forestlands" refers to lands of the public domain classified as needed for
forest purposes. They shall include all forest reserves, forest reservations and
all remaining unclassified lands of the public domain;

gg. "Genetic engineering" refers to genetic modification, or a special form of
biotechnology in which a section of DNA from one organism is introduced
into another, in which it does not naturally occur, in order to produce a
genetically modified organism (GMO) with favorable properties based on the
new combination of genes. The new genes in the transgenic organism may be
from an entirely different type of organism, or from a closely related lineage.

hh. "Genetically modified organisms" or "GMOs" refers to organisms in which the
genetic material has been altered in a way that does not occur naturally. GMOs
can be bacteria, fungi, viruses, plants or animals, with the exception of human
beings;

ii. "Grazing land" refers to a portion of the public domain which has been set
aside, in view of its topography and vegetation, for the raising of livestock;

ji. "Greenhouse gas" refers to any gas that absorbs infrared radiation in the
atmosphere. Greenhouse gases include water vapor, carbon dioxide (C02),
Methane (CH4), nitrous oxide (N20), halogenated fluorocarbons (HCFCs),
ozone (03), perfluorinated carbons (PFCs) and hydrofluorocarbons (HFCs);

kk. "Indigenous Cultural Communities/Indigenous Peoples" or "ICCs/IPs" refers
to a group of people or homogenous societies identified by self-ascription and

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ascription by others, who have continuously lived as organized community on
communally bounded and defined territory, and who have, under claims of
ownership since time immemorial, occupied, possessed and utilized such
territories, sharing common bonds of language, customs, traditions and other
distinctive cultural traits, or who have, through resistance to political, social
and cultural inroads of colonization, non-indigenous religions and cultures,
became historically differentiated from the majority of the Filipinos. ICCs/IPs
shall likewise include people who are regarded as indigenous on account of
their descent from the populations which inhabited the country, at the time of
conquest or colonization, or at the time of inroads of non-indigenous religions
and cultures, or the establishment of present state boundaries, who retain some
or all of their own social, economic, cultural and political institutions, but who
may have been displaced from their traditional domains or who may have
resettled outside their ancestral domains;

Il. "Industrial Forest Management Agreement" or "IFMA" refers to a production-
sharing contract entered into by and between the Department and a qualified
person, whether natural or juridical, wherein the former grants to the latter the
exclusive right and responsibility to invest in, develop, manage, and protect a
defined area of the production forestland, including the establishment,
management and utilization of industrial timber forest plantation, consistent
with the principle of sustainable development, primarily to supply the raw
material requirements of wood-based processing and energy-related industries
and wherein both parties share in the benefits therefrom;

mm. "Industrial Tree Plantation" or ITP" refers to any tract of land planted
mainly to timber producing species, including rubber and/or non-timber
species primarily to supply the raw material requirements of forest-hased
industries, energy-generating plants, and related industries.;

nn. "Joint venture agreement" refers to an agreement where a joint-venture
company is organized by the State and another person for protection,
restoration and utilization, development and management of forestlands
consistent with the prescribed activities allowed under this Act, with both
parties having equity shares. Aside from earnings in equity, the State shall he
entitled to a share in the gross output;

0. "Kaingin” refers to a portion of the forest land, whether occupied or not,
which is subjected to shifting andlor permanent slash-and-burn cultivation
having little or no provision to prevent soil erosion;

pp. "Kaingin making" refers to a process employed to establish a kaingin;

qq. "Key Biodiversity Areas” refers to places of international importance for the
conservation of biodiversity;

1, "Master Plan for Forestry Development" refers to the twenty-five (25) year
strategic program of the Forestry Sector envisioned to guide its long term
development. This program includes: (a) policy and institutional development;
(h) restoration and rehabilitation c) watershed and forestry development; (d)
livelihood and poverty reduction; and (e) timber/non-timber industry
development;

ss. "National Park" refers to the land of public domain classified as such in the
1987 Philippine Constitution which includes all areas under the National
Integrated Protected Areas System (NIPAS) pursuant to RA 7586, primarily



set aside and designated for the conservation of native plants and animals,
their associated habitats and cultural diversity;

tt. "Non-government organization” or "NGO" refers to a non-stock, non-profit,
and voluntary organization;

uu, "Non-timber based industries" refers to various industries that are dependent
on raw materials or products derived from forests such as, but not limited to,
rattan, bamboo, vines, latex, resins, saps, essences, fruits, flowers or wild flora
and fauna;

vw. "Non-timber charges" refers to the levy imposed and collected by government
on various industries that are dependent on raw materials or products derived
from forests such as, but are not limited to, rattan, bamboo, vines, latex, resins,
saps, essences, fruits, flowers or wild flora and fauna, as well ecological and
aesthetic services:

ww. "Non-timber forest products" refers to all products gathered from the forest
that are not timber, which include, but are not limited to, rattan, bamboo, vine,
herb, exudates, gmn, resin, beeswax, gutapercha, and almaciga resin;

xx. "Permit" refers to a short-term privilege or authority granted by the State to a
person to utilize any limited forest resource or undertake a limited activity
within any forest land without any right of occupation, possession, and
ownership therein;

yy. "Person" refers to a natural or juridical person, including local forest
communities and/or indigenous peoples organized in accordance with law or
custom;

22. "Plantation forestry" refers to the planting of one or two species for the sole
purpose of harvestin,

aaa. "Primary forest" refers to forest which have never been subject to human
disturbance or has been so little affected by hunting, gathering and tree cutting
that its natural structure, function and dynamics have not undergone any
changes that exceed the elastic capacity of the ecosystem;

bbb. "Processing plant" or "Processing mill" refers to any mechanical set-up,
device, machine or combination of machines used for the conversion of logs
and other forest raw materials into lumber, fiberboard, pulp, paper or other
finished wood products;

cee. "Production forestlands" refers to the forestlands defined under Sec. 8(b) of
this Act;

ddd, "Production sharing agreement” refers to an agreement wherein the State
grants a person/s, who provides all the necessary financing, technology,
management and personnel, the exclusive right to conduct forestry
development activities within but not title over, the contract area and shares in
the production whether in kind or in value as owner of forest product therein;

ece."Protected Areas" refers to identified portions of land and water set aside by reason of
their unique physical and biological significance, managed to enhance biological
diversity and protected against destructive human exploitation They shall constitute
the areas established under the National Integrated Protected Areas System (NIPAS)
pursuant to RA 7586 and shall fall under the National Park classification of public
dom:

fff. "Protection forestlands" refers to the forestlands defined under Sec. 8 (a) of this Act;
geg. "Reforestation" refers to all land use activities directed towards restoration,
establishment and sustained management using native species of diversified

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vegetation on denuded, degraded and/or marginal lands, including but not
limited to the planting and tending of timber, orchard and multi-use trees;

hhh. "Reservation" refers to an area of the public domain reserved by law for a
specific purpose;

iii, "Restoration" refers to the bringing back of the forestland to its original state
in terms of species composition, structure, function and productivity;

jij. "Restoration zones" refers to the area where restoration activities are
conducted and where the original vegetation shall be restored:

kkk, "Road" refers to bulldozed land which is accessible by at least a two-wheel
motorized vehicle;

Ill. "Rotation" refers to the number of years between the initial establishment of a
plantation and the time when it is considered ready for harvesting;

mmm. "Secondary forest" refers to a former forest that was logged over and is
characterized by residuals;

nnn. "Secretary" refers to the Secretary of the DENR;

000. "Semi-finished .wood products" refers to wood products requiring final
stages of manufacture andlor assembly such as, but not limited to, window
components, table tops, veneer, tongue and groove planks, steps for stairs, and
other similar products;

ppp. "Silvicultural practices” refers to any action by man to further improve or
enhance the stand growth as a whole or the single tree for future harvest
including assisted natural regeneration and tree surgery, among others;

qqq. "Subdivision" refers to a tract or parcel of land partitioned into individual
lots, with or without improvements thereon, primarily for residential purposes;

ir, "Sustainable development” refers to development that meets the needs of the
present without compromising the ability of the future generations to meet
their own needs;

sss."Sustainable forest management" or "SFM" refers to the process of managing
a forest to achieve one or more clearly specified objectives of management
with regard to production of continuous flow of desired forest products and
services without undue reduction of its inherent values and future productivity
and without undesirable effects on the physical and social environment;

"Tenure" refers to the guaranteed peacefull possession and use of specific forest
land area and specific resources found therein, covered by an agreement,
contract, or grant which cannot be altered or abrogated without due process;

uuu. "Timber-based industries" refers to industries that are dependent on wood
as the principal raw material including but not limited to saw milling, pulp and
paper making, and plywood and veneer manufacturing or the upstream wood-
based industries, as well as the secondary and tertiary wood processing or
downstream industry such as moldings and furniture manufacturing;

vvy. "Timber charges" refers to the levy imposed and collected by the
government on timber products cut, harvested, or gathered from production
forestlands and from alienable and disposable (A&D) lands in accordance with
Republic Act No. 7161;

www. "Timber License Agreement" or "TLA" refers to a privilege granted by the
State to a person to utilize forest resources within an area with the right of
possession and occupation thereof to the exclusion of others except the
government, but with the corresponding obligation to develop, protect, and

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rehabilitate the same in accordance with the terms and conditions set forth in
the said agreement;

xxx. "Timber plantation" refers to a tree stand established by planting and/or
seeding. The stand is cither of introduced species (all planted stands), or an
intensively managed stand of any indigenous species, which meets all the
following criteria: one or two species at plantation, even-aged class, and
regular spacing for the primary purpose of harvesting timber or any of its by-
product;

yyy. "Transgenic" refers to a genetically modified organism (GMO) or
genetically engineered organism (GEO) whose genetic material has been
altered using genetic engineering techniques. It is the process of introducing
an exogenous gene into a living organism so that the organism will exhibit a
new property and transmit that property to its offspring;

zzz. "Watershed Continuum" refers to an area consisting of the watershed and
its divide including its connection from the headwaters to the reef;

aaa, "Watershed Continuum Management" or "WCM" refers to a management
system that will provide the optimum social, cultural, economic and
environmental benefits to the greatest number of people, particularly those
living in, adjacent to, or downstream of, individual watershed areas, while
maintaining the biological and cultural heritage of the country. It is the holistic
multiple use and sustainable management of all the resources within a spatial
unit known as the watershed. The Watershed Continuum Management is based
on the following guiding principles: (1) Ecological sustainability; (2) Social
and cultural sustainability; (3) Economic sustainability; and (4) Institutional
sustainability;

bbbb. "Watershed Reservation" refers to a forestland reservation established to
protect or improve the conditions of water yield thereof or reduce
sedimentation;

cece. "Wildlife" refers to wild forms and varieties of flora and fauna, in all
developmental stages; and

dddd. "Woodlots" refers to a track or plot of land planted with fast growing tree
species basically for fuel wood purposes, Woodlot is the major component in
Rotational Woodlot Agroforestry Systems which aim to satisfy house and
regional fuel wood demand while reducing harvesting pressure on local
forests. Rotational Woodlot Agroforestry Systems include the following
‘components: (1) Establishment, which includes tree and crop intereropping;
(2) Fallow, which pertains to build up of wood and soil fertility; and (3) Post-
fallow, which pertains to wood harvesting and sequential cropping.

CHAPTER II
CLASSIFICATION OF PERMANENT FORESTLANDS

SECTION 5. Permanent Forestlands. A\\ forestlands currently classified as such.

SECTION 6. Instruments within Permanent Forestlands, Titles, settlements, permits, lease,
and/or agreements within critical habitats, critical watershed areas, protected areas, important
biodiversity areas (IBAs), and key biodiversity areas (KBAs), shall be reviewed, and its

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legality be determined. All erroneous titles, settlements, permits, leases and/or agreements or
non-compliance to and in violation of provisions of agreements shall duly be canceled or
revoked; Provided, That the applicable provisions of the Indigenous Peoples Rights Act of
1997 (IPRA) shall be respected. The LGU, upon endorsement from the Forest Management
Board or motu proprio, shall recommend to the Secretary revocation of these instruments,
‘The Secretary, upon recommendation or motu proprio revokes such instrument.

SECTION 7. Additional Areas to be Included as Permanent Forestlands. The following
lands are needed for environmental protection and forestry purposes and shall not therefore
be classified as agricultural lands or for other land use:

a) Isolated patches of forest, regardless of size of area, with rocky terrain or
which protect a spring for communal use;

b) All mangroves and swamplands including twenty-meter wide strips thereof
facing oceans, lakes and other bodies of water not yet classified as alienable
and disposable lands:

c) Ridge tops and plateaus regardless of size found within or surrounded wholly
or partially by forestlands where headwaters emanate;

d) ‘Twenty-meter wide strips of land from the edge of the normal high waterline
of rivers and streams with channels of at least five (5) meters wide which are
not yet classified as alienable and disposable;

e) Areas needed for other purposes of public interest such as research or
experimental purposes and others; and

f) Areas considered environmentally critical because of their vulnerability to
damage from landslides, volcanic eruptions, and other natural causes.

Owners who have acquired vested rights over lands enumerated above are required to
implement soil and water conservation measures, in coordination with the Department and
the appropriate local government unit. An Environmental Compliance Certificate (ECG) shall
be required in these environmentally critical areas in accordance with existing law: Provided,
‘That the Department, in coordination with the concerned local government unit, shall
immediately take the necessary steps to expropriate the property concerned, to impose the
necessary fines, penalties and costs of rehabilitation and implementation of the required soil
and water conservation measures, and to cancel andlor amend any title used thereon or
impose fines or will be subject to cancellation or revocation under any of the following
conditions:
a) Pailure of the owner, after due notice, to implement appropriate soil and water
conservation;
b) Failure of the owner/s to comply with ECC requirements when required:
¢) The issuance of titles over such areas was accomplished through fraud, deceit,
misrepresentations or other anomalies; ot
d) When public interest so requires.

Provided further, That the concemed LGUs may recommend to the DENR to file
expropriation proceedings given the conditions enumerated in this provision.

SECTION 8. Sub-Classification of the Permanent Forestlands. The permanent forestlands
shall be sub-classified into the following categories according to primary use:

i


a) Protection forestlands shall consist of all natural and restored forests including areas
identified as key biodiversity areas, critical habitats, freshwater, swamps, and
marshes, all areas along the bank of rivers and streams, and the shores of the seas and
lakes throughout their entire length and within a zone of three (3) meters in urban
areas, twenty (20) meters in agricultural areas, and forty (40) meters in forest areas,
along their margins which are subject to the easement of public use in the interest of
recreation, navigation, floatage, fishing and salvage shall also be sub-classified as
protection forestlands. Alll extractive industries such as, but not limited to, logging
and mining are banned in these protection forestlands; Provided, That the provisions
of the IPRA shall be respected:

b) Production forestlands shall be all forestlands not sub-classified as protection
forestlands defined in this Section, and shall be devoted to the production of timber
and/or non-forest products or the establishment of industrial tree plantations, tree
farms, communal forests, agroforestry, grazing, or as multiple-use forests including
water-based energy arcas such as but not limited to hydro and geothermal
reservations: Provided, That they shall be managed, developed, and utilized in
accordance with a LGU-approved management plan consistent with the prescribed
Forestry Master Plan and based on sustainable forest management principles:
Provided, further, That the department may change the sub-classification of specific
areas of production forestlands into protection areas and recommend to Congress
their establishment as part of the integrated protected area systems in accordance
with the NIPAS Act, or as critical habitat under the Wildlife Resources Conservation
and Protection Act: Provided finally, That ancestral domains located within
protection and production forests shall be governed by customary laws;

c) Restoration areas are areas to be designated in the management plan as such.
Designation of a restoration area is compulsory in all forest management plans.

SECTION 9. Demarcation and delimitation. Upon approval of this Act, the Congress shall
provide funds for the Department to demarcate on the ground the actual land classifications:
Provided, That the Secretary, upon completion of the actual assessment of the demarcated
land classification lines, shall recommend to Congress the delimitation of the forestlands
found to be still suitable and capable for its purpose, Provided further, That the Department
shall submit n41 annual accomplishment report and that within five (5) years, has caused the
complete demarcation and delimitation of land classification lines.

SECTION 10. Availability of records. Records pertaining to the specific limits of forestlands
shall be made available to the public upon request. Moreover, the Department shall furnish all
provincial, municipal and city government copies of the maps of permanent forestlands
located within their respective territorial jurisdictions.

CHAPTER ITT
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND ITS
RESOURCES

SECTION 11. Jurisdiction and control of forestlands. The Department shall be the primary
agency responsible for the conservation, restoration and the sustainable utilization of

12


forestlands and the unclassified lands of the public domain. It shall formulate a national
forestry master plan and the policies promulgated in this Act, In coordination with LGUs and
other government agencies, it shall ensure that forestlands and unclassified lands of the
public domain are managed, conserved, developed, utilized and protected consistent with the
policies promulgated in this Act; Provided, that the management plan for protected areas shall
be prepared in accordance with the provisions of the NIPAS Act, the Wildlife Resources Act,
the Local Government Code, and the IPRA, and other relevant laws and international
covenants, as well as other pertinent laws; Provided further, That certain functions and
powers of the Department may be devolved to the local government units.

SECTION 12, Co-Management Agreement for the Devolution of Functions. The
Department, the Department of Interior and Local Government, and the concerned LGUs
shall execute a co-management agreement, which shall contain the program and schedule by
which functions shall be strategically devolved, providing for capacity-building and
empowerment mechanisms.

SECTION 13. Powers and Responsibilities of the LGUs. Pursuant to the pertinent
provisions of Republic Act. No. 7160 or the Local Government Code, LGUs shall share the
responsibility in the sustainable management and utilization of forest resources within their
territorial jurisdiction including those assigned by law to other government agencies. The
LGU and the Department shall jointly undertake the preparation and implementation of
forestland use and watershed continuum management plans, consistent with the Ancestral
Domain Sustainable Development and Protection Plan (ADSDPP) and in consultation with
other government agencies, local communities, non- government organizations and other
sectors. Partnerships with LGUs and local communities are highly encouraged. Such plans
shall 00 fully funded and made an integral component of the LGU's Comprehensive Land
Use Plan (CLUP).

The devolved functions include, but are not limited to, the following:

a) Implementation of community-based forestry projects, e.g. Community-based
Forest Management Agreements;

b) Establishment of reforestation projects except in protected areas and critical
watersheds;

c) Completed family and contract reforestation projects;

d) Forest Land Management Agreements;

e) Community Forestry Projects;

f) Management and control of forests located in the LGU's jurisdiction;

2) Management, protection, rehabilitation and maintenance of small watershed areas
which are sources of local water supply as identified or to be identified by the
DENR;

h) Enforcement of forestry laws; and

i) Prevention of forest fires, integrated pest management and protection against forest
invasive species.

SECTION 14, Multisectoral participation, In formulating conservation and management
plans and programs, multisectoral participation shall be required.

SECTION 15. Local Government Unit Consent and Consultation.- Proponents of all

13


forestry projects to be implemented in the LGUs' territorial jurisdiction shall strictly comply
with Sections 26 and 27 of the Local Government Code,

SECTION 16. Forest Board, A forest board (Board) shall be created at the Municipal level
which shall be composed of a representative from the LGU and representatives of different
sector including but not limited to, women, farmers, fisher folks, and indigenous peoples,
shall set the policy direction for the management, utilization and development of forestlands
and resources found within their respective jurisdictions in accordance with the watershed
continuum plan,

SECTION 17. Functions of the Forest Board. The Board shall be responsible for the over-
all policy direction for the management of the forestlands and forest resources found within
their respective jurisdictions in accordance with the provisions of this Act. It shall review and
recommend implementation of programs and projects and perform oversight functions on
matters pertaining to environment and natural resources. It shall also participate in the review
and recommend relevant policies for the protection, conservation and restoration efforts
within the continuum and ensure the contribution of the forestry sector to national economy,
ecological sustainability and sustainable development closely adhering to the principles and
action plans set under Philippine Agenda 21 and its revised versions. It shall moreover
facilitate the initiation of the LGU's participation in the devolution program and shall
monitor the transfer and implementation of devolved functions at the LGD.

SECTION 18. Creation of a Municipal Environment and Natural Resources Office. \
Municipal Environment and Natural Resources Office (MENRO) is hereby created, including
the position for the Municipal Environment and Natural Resources Officer. The LGU shall
ensure that funds are available' for the operations and salaries of personnel for this Office.
SECTION 19. Qualifications of a Municipal Environment and Natural Resources Officer.
The Municipal Environment and Natural Resources Officer should have a background in
planning, natural and environmental science, and should be civil service eligible.

SECTION 20. Functions of the MENRO. The MENRO shall facilitate the preparation of
management plans. It shall recommend to the Board relevant policies for the protection,
conservation and restoration efforts within the continuum. It shall evaluate applications for
forest. management agreements; monitor the performance of holders of all tenurial
instruments issued by the LGU and Department. The MENRO may recommend to DENR
appropriate action with regard to the implementation of pertinent laws, rules and regulations.
‘The MENRO shall exercise visitorial powers over the forestlands.

SECTION 21. Forest Management Committee within a watershed continuum. A forest
management committee shall be created under the Municipal Development Council
Municipalities/cities falling within the same watershed continuum shall form a forest
management committee within the Provincial Development Council. Provided further, That
provinces falling under the same watershed continuum will create a committee within the
Regional Development Council. These committees shall be responsible for the preparation of
the required overall management plans, in relation to the direction set by their respective
Forest Boards.

SECTION 22. Forestlands under Other Government Agencies. Forestlands and/or portions

14


thereof which have been assigned by law to the administration and management of other
government agencies for a specific purpose prior to the passage of this Act shall remain under
the administration and management of these government agencies which shall be responsible
for their conservation, protection, and restoration. The Secretary and the concerned local
chief executive or their respective duly authorized representative shall exercise visitorial
powers over these forestlands. Moreover, these forestlands shall be administered in
accordance with a forest management plan embodied in the comprehensive forest
management and land use plan of the LGU, which shall be prepared by the concerned
management committee of the watershed continuum level within one (1) year from the
effectivity of this Act. Said multisectoral body shall periodically review, monitor, and
evaluate the implementation of the said management plan. Provided, That the harvesting of
forest resources and building of roads and other infrastructure therein shall be undertaken
only with the prior approval of the LGU upon the endorsement of the local forestry boards,
and after compliance with EIS and ECC requirements: Provided further, That the LGU shall
endorse to the Secretary who shall recommend to Congress or the President of the Philippines
the reversion to the LGU of the jurisdiction and control over forestlands that are no longer
needed nor used for the purpose by which they have been constituted or in case the agency
concerned fails to rehabilitate, protect, and conserve the forestland resources in accordance
with the approved management plan. The LGU, in coordination with its forestry board and
consistent with the watershed continuum plan, shall determine the use of the reverted
forestlands.

SECTION 23. Forest Resources within Alienable and Disposable Lands. All forest
resources planted or raised within alienable and disposable lands belong to the holder of the
instrument giving rights to the claimant, who shall have the right to sell, contract, conveyor
dispose of the same subject to a certification process to be developed by the Department. The
Department shall prepare the guidelines in coordination and cooperation with LGUs and
multisectoral consultations. Holders of said instruments who register their forests lands for
forestry purposes with the LGU shall be assisted in the preparation of a management plan
consistent with the watershed continuum management plan, and shall be entitled to
appropriate incentives provided under Section 44 herein, on reforestation in private lands:
Provided, That alienable and disposable lands devoted to the planting and harvesting of forest
resources shall remain subject to the provisions of Republic Act No. 6657 or the
Comprehensive Agrarian Reform Law or any other similar law that may be enacted.

SECTION 24, Forest Resources within Production Forestlands. Resources, including non-
timber forest products, its by-products and its derivatives, whether naturally growing, planted
or raised, which have been taken or have been applied with some silvicultural practices,
within production forestlands shall be issued the appropriate permit, agreement or clearance.
Any declaration of forest resources as threatened shall be in accordance with the Wildlife Act
and other relevant laws.

SECTION 25. Logging in Production Forestlands, To ensure the conservation and
sustainable use of forest resources in production forestlands, holders of timber licenses,
permits and/or agreements shall submit to the LGU an Integrated Operations Plan (IOP)
containing strict environmental guidelines such as ECC compliance. All forest development
activities such as logging, reforestation, timber stand improvement, forest protection, and
delivery of community service within an area covered by timber concessions shall be

15


consolidated under the JOP, which shall be prepared by or under the supervision of an
accredited private registered forester whose signature and dry seal shall appear in the plan
and the supporting documents submitted for this purpose.

SECTION 26. Forest Resources within Protection Forestlands. Only non-timber forest
products shall be allowed to be extracted from protection forestlands and shall be issued the
appropriate permit, agreement or license, Provided, that harvesting or gathering of timber for
subsistence use of indigenous communities and forest communities shall be allowed but only
in woodlots established by the communities. Any declaration of forest resources as
threatened, and other restrictions shall be in accordance to the Wildlife Act.

SECTION 27. Absolutely Prohibited Activities in Protection Forestlands. Commercial
logging,mining and other similar extractive activities such as but not limited to treasure
hunting shall be absolutely prohibited in protection forestlands.

SECTION 28. Review of Reservations within Protection Forestlands, All reservations made
within protection forestlands shall be reviewed. Reservations which are contrary to the
provisions of this Act, including, among others, mineral or settlement reservations, shall be
withdrawn.

SECTION 29. Commercial Logging Ban in Protection forestlands. There shall be a
permanent ban on commercial logging activities in all protection forests defined, categorized,
and sub-classified in Section 8(a) herein. No licenses, permits, or agreements to cut any
timber therein shall be issued.

SECTION 30. Protection Forestlands covered by Existing Permits, Licenses and/or
Agreements. All existing permits, licenses and agreements shall be reviewed, and, if
protection forestlands are found within an agreement or licensed area, such protection
forestlands shall be immediately excised from said permit, license and/or agreement, and the
holder of the agreement or license shall establish a 'buffer zone and delineate their boundaries
with the production forestlands, marking the same with concrete monuments, road, or
infrastructure, or any other visible, permanent, and practicable signs.

SECTION 31. Duty of the License Permit-holder. In coordination with the concerned LGU,
the agreement- or license-holders shall protect and conserve such protection arca following a
plan consistent with the prescribed management plan for key biodiversity areas or similar
strategies by the Department, ‘The agreement- or license-holder concerned shall be
accountable for the destruction of such protection forestlands that did not result from force
‘majeure, and such destruction shall serve as basis, in addition to the other violations
enumerated in this Act hereof, for the termination or revocation of the agreement, license, or
permit, and the filing of proper charges under the NIPAS Act and pertinent forestry laws,
rules and regulations, In the absence of a contractor or agreement holder over such
production forestlands, the delineation of said boundary shall be undertaken and prioritized
by the Department.

SECTION 32. Non-Extension of Timber License Agreements. No extensions shall be made
on any existing TLA, and the area covered by the agreement shall automatically be sub-

16


classified as protection forestland afier the representatives of the Department, the LGU s
concerned, the Department of Agrarian Reform, NGOs, peoples’ organizations, and other
stakeholders had excluded degraded areas that may be subject of a reforestation project.

SECTION 33. Forest Resources within Ancestral Domains/Ancestral Lands. When forest
resources are within ancestral domains/ancestral lands which are otherwise production or
protection forestlands, aside from the necessary permit, license or agreement, the genuine
free, prior and informed consent of the indigenous communities shall also be secured,
Provided, That if the indigenous communities will themselves harvest these resources for
their subsistence or survival use, the provisions of IPRA shall apply and no permits shall be
required as owners of such resources, Provided finally, That, if the indigenous peoples will
themselves harvest such resources for commercial purposes, they shalll be subject to the same
limitations and conditions as provided by this Act.

The National Commission on Indigenous Peoples (NCIP) shall coordinate and consult the
Department in providing assistance to the indigenous peoples in the sustainable management
and development of forest resources within ancestral lands and domains.

SECTION 34. Mandatory EIA. Any permit, license, agreement or any other instrument to
develop or use forestlands or resources therein, including those found within ancestral
domains/lands that would result in severe soil erosion or environmental degradation shall be
subject to the provisions of Environmental Impact Assessment (EIA) in accordance with
Presidential Decree No. 1151 or the Philippine Environmental Policy, Presidential Decree
No. 1586, Establishing an Environmental Impact Statement System, and this Act.

CHAPTER IV
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT

SECTION 35. Forestry Master Plan. The Department shall periodically prepare the map,
revisit or review the Forestry Master Plan in consultation with local stakeholders, and shall
revise the said plan according to the provisions of this bill, taking also into consideration
biodiversity conservation, carbon sequestration and other matters of the same import. The
Forestry Master Plan shall be presented to all LGUs, and other stakeholders upon completion
and shall be posted in conspicuous areas and made accessible to the public,

SECTION 36. Sustainable Forest Management Planning. Subject to vested or prior rights,
the Department, in consultation and coordination with LGUs, other government agencies,
local communities, non-government organizations, individual and corporate entities, private
sectors, academic and research institutions, and other concerned sectors shall within one (1)
year from the effectivity of this Act, develop and adopt a sustainable forest management
strategy for each well-defined watershed or other appropriate forest management unit based
on criteria, indicators, and standards for sustainable forest management which, at their
minimum, address the following requirements:

a. Rational allocation of forestland uses and promotion of land use practices that
increase productivity and conserve soil, water, and other forestland resources;

b. Protection of existing forest resources and conservation of biodiversity;

c. Restoration of denuded areas, making use of indigenous tree species for

7


biodiversity conservation in protection forests and buffer strips of water channels
and bodies;

d. Establishment of tree plantations in production forest lands, private lands, and
alienable and disposable lands;

e. Enhancement of the socio-economic well-being of local communities including
indigenous peoples who are largely dependent on the forest for their livelihood;

f Promotion of closer coordination between and among the Department, LGUs, other
national agencies, non-government organizations, local communities, the private
sector, academic and research institutions and other entitics in the sustainable
management of forestlands;

g. Adoption of community-based forest management as a principal strategy in the
management of forestlands and resources; and,

h. Harmonization and integration of the forest management plan of forestlands and
resources with other plans, such as the forest management plan and the land use
plans of the LGUs, protected areas management plans in areas covered by the same,
critical habitat management plan, barangay development plan, CLUP of cities and
municipalities and physical framework plans of the provinces and the regional
development plans, and be consistent with the ancestral domain management plans
and protected area management plans areas covered.

‘The Department shall continue to adopt the Master Plan for Forestry Development subject to
periodic review every five (5) years.

SECTION 37. Watershed Continuum Management Strategy. ‘The Watershed Continuum
Planning and Management Framework in Environment and Natural Resources shall be
adopted. The strategy for improved watershed resources management shall be demand-
driven, community-based, and multiple- and sustainable-use considering national priorities
and concerns of local stakeholders, Watershed continuum management programs initiated by
the government shall be guided by ecological, socio-cultural, economic, and institutional
sustainability principles, A National Watershed Information System shall be developed to
guide policy formulation, program development, and implementation of watershed
continuum management initiatives. The Department in consultation with the LGUs shall
identify the watershed continuum in the country and provide the maps for each.

SECTION 38. Prioritization of watersheds. A system of prioritization of watersheds shall be
pursued considering the following:

a. Biodiversity and environmental enhancement;

b. Cultural and historical value;

c. Water supply for domestic, irrigation, power, industrial, and commercial use;

d. Contribution to the economy; and

e. Effect on downstream areas.

SECTION 39. Forest Resource Database anti Monitoring System. Areas identified by the
Department as forests as defined under this Act shall be verified and validated by the Forest
Development Center, including those within ancestral domains and lands; A centralized
forestland resource database shall be made available to the public at all times, online if
possible, which shall consist of comprehensive updated information on the physical, social,
economic biological, environmental and cultural components of the country's forestlands and

18


shall include a log control monitoring or timber identification system to enable the
Department and its field offices to track the movement or transfer of timber and other forest
products from a forestland source to their end users. The Department shall conduct and/or
update forest resource inventory at least once every five (5) years to ensure effective
management.

SECTION 40. Environmental Impact Assessment, Resource Accounting and Valuation.
All new environmentally critical projects to be implemented in forestlands, such as
harvesting, grazing and other special uses, mineral prospecting and exploration, and road,
infrastructure, and mill construction, shall be subject to Environmental Impact Assessment
(BIA) in accordance with Presidential Decree No, 1151 or the Philippine Environmental
Policy, and Presidential Decree No, 1586, Establishing an Environmental Impact Statement
System. A scientific source valuation of impacts of affected biophysical and environmental
elements, and an extended benefit cost analysis shall be used in the EISS, The Department
shall design and implement a system of regular periodic monitoring and assessment using the
Criteria and Indicators as framework and shall formulate appropriate standards as basis for
assessing progress towards sustainable forest management. Furthermore, the Department
shall design and implement an appropriate natural resources accounting and valuation system
for various forestry initiatives, The Department shall establish the total value of forestlands
based on multiple uses, including their environmental services,

CHAPTER V
REFORESTATION AND RESTORATION

SECTION 41. Restoration in Protection Forestlands. The restoration of all critical
watersheds and critical, denuded, and degraded forests within protection areas shall be
prioritized. Only the use of indigenous or native species in the restoration and rehabilitation
of protection areas shall be adopted to enhance biological diversity therein, The LGDs in
coordination with the Department, other government agencies, NGOs, local residents and
communities, and other sectors concerned, shall identify and prioritize forestlands to be
reforested, The LGD, consistent with the watershed continuum plan and the corresponding
municipal forest land use plan may enter into agreements with qualified persons, including
forest Community organizations, in the restoration of protection forestlands,

SECTION 42. Identification of Restoration Forestlands, LGUs, in cooperation with the
DENR and other government agencies, NGOs, local residents and communities shall identify
and prioritize forestlands to be restored, Provided, priority restoration shall be a band of 200
meters from the boundary of protection areas and protected areas, abandoned mines and
abandoned and idle fishponds for mangrove restoration, For mangrove forests, the LGD shall
prepare a rehabilitation plan to restore mangroves in their area, Provided further, That an
accelerated restoration program in such identified priority protection forestlands shall be
undertaken to raise the forest cover therein at least fifty percent (50%) of the prioritized area
within five (5) years and eighty percent (80%) of the area within ten (10) years from
effectivity of this Act. The LGU shall allot funds to effectively accomplish restoration either
by its own or through permit, license and/or agreement in protection forestlands, The
Department or other agencies responsible for restoration shall give priority to local
communities in the granting of technical and financial assistance for restoration activities,
Provided finally, That assisted natural regeneration'(ANR) shall be encouraged in protection

19


forestlands.

SECTION 43. Reforestation or Tree Plantation Development in Production Forestlands.
In accordance with Section 50 herein, the LGU may enter into joint venture, co-production,
or production-sharing agreement with qualified persons to reforest or to develop tree
plantations in production forestlands, Provided, that palm plantations and the like shall not be
allowed in production forestlands.

SECTION 44. Reforestation in Forestlands under the Jurisdiction of Other Government
Agencies. Government agencies and institutions having management control over forestlands
pursuant to a law or grant shall be responsible for the reforestation of denuded and degraded
portions of such forestlands. The reforestation program of these agencies shall aim to increase
the vegetation of the degraded areas using native species, to be identified jointly by the
Department and agency concerned and multisectoral stakeholders. The concerned agency in
coordination with the LGU shall prepare the reforestation plan, consistent with the watershed
continuum plan and determine the ratio of forested areas at any given time. Failure to reforest
denuded and/or degraded forestland identified in the reforestation plan within the period
herein prescribed shall be sufficient ground to request for reversion of the said forestlands to
the jurisdiction and control of the LGU: Provided, however, That in areas where Community-
based Forest Management Strategy (CBFMS) shall be implemented or where there are
existing facilities for basic services such as water and power as allowed by the Department
pursuant to the provisions of this Act, the completion of the reforestation program shall be
subject to the conditions provided in the instrument to be awarded by the Department and the
agency concerned to the participating local community or individual or in the Forest
Management Agreement of contractors operating such facilities for basic services, as
approved by the Department. Provided finally, that whenever applicable, the use of ANR
shall be preferred and community-based forest management encouraged.

SECTION 45. Reforestation in Alienable and Disposable Lands andor Private Lands.
Reforestation or the establishment of tree farms or tree plantations in private lands guided by
the watershed continuum Plan shall be encouraged: Provided, That such private lands and
other alienable and disposable lands are not prime agricultural lands as determined or
certified by the Department of Agriculture (DA). The private landowner(s) shall also be
entitled to the incentives provided for under Section 44 herein: Provided, That such private
tree plantations are duly registered with the Department. Whenever applicable, use of ANR
shall be preferred and community-based forest management encouraged.

SECTION 46. Incentives of Reforestation or Restoration within Production Forestlands.
‘To encourage qualified persons to engage in restoration or reforestation activities, the
following incentives shall be granted:

a) Upon the premature termination of the agreement at no fault of the holder, all
depreciable permanent and semi-permanent improvements such as roads,
buildings. and nurseries including the planted and standing trees and other
forest crops introduced and to be retained in the area shall be property
evaluated and the holder shall be entitled to a fair_compensation thereof the
amount of which shall be mutually agreed upon by both the LGU and the
agreement holder, and in case of disagreement between them, by arbitration
through a mutually acceptable and impartial third party adjudicator;

20


b) The agreement holder has the right to transfer, contract, sell, or convey his
rights to any qualified person following the guidelines to be issued by the
Secretary, Provided, that if such restoration or reforestation were conducted
within ancestral domains/ancestral lands, the transferee shall secure the free,
prior and informed consent of the indigenous communities of such ancestral
domains/ancesiral lands prior to such transfer; and,

c) In the event that the area restored has provided ecological services to the
community, user fees shall be allowed as incentives.

The Secretary may provide or recommend to the President or to Congress other incentives in
addition to those granted herein and in existing laws in order to promote reforestation and the

establishment of tree plantations, Provided, That in no case shall the Secretary provide
incentives that shall put the State at a gross disadvantage. nor shall the Secretary provide
incentives of non-payment of taxes or other rightful fees due to the State as provided by other
laws.

SECTION 47. Reforestation in Ancestral Domains/Ancestral Lands. Reforestation in
ancestral domains/ancestral lands, if not undertaken by the ICCs/IPs themselves, shall require
the free, prior and informed consent of the ICCs/IPs.

SECTION 48. Reforestation in Protection Forestlands. The Department may contract out
the reforestation and/or management of protection forestlands to any person, Provided, that
such persons should meet the qualifications enumerated in Section 54. The Department shall
reasonably compensate such persons for such reforestation and/or management activities and
extend the necessary assistance in Ihe reforestation and/or management of such protection
forestlands.

SECTION 49. Voluntary Offer to Reforest. Private landowners, whether natural or juridical
persons, may participate in reforestation and plantation development or similar programs of
the LGU or the Department, with the landowner contributing his land and the LGU or
Department furnishing funds to reforest the area on a co-production agreement: Provided,
That the property shall be exclusively devoted to the planting of forest species for at least one
(1) rotation, which undertaking shall be annotated at the back of the title of the property:

Provided, further, That prime agricultural lands as determined or certified by the DA shall
not be the subject of a voluntary offer to reforest.

CHAPTER VI
COMMUNITY-BASED FOREST MANAGEMENT STRATEGY

SECTION 50. Community-Based Forest Management Strategy (CBFMS). Whenever they
are present, forest resident families, communities, indigenous peoples and other communities
whose lives, culture and general well-being are intimately linked with the forests, shall be
entrusted with the responsibility to protect, manage, develop and utilize resources limited to
woodiots and non-timber forest products (NTEP) under the principle of stewardship. Timber
harvesting shall only be allowed in production forestlands designated in the Community
Resource Management Plans (CRMP). The Department together with the LGUs, and in
consultation with affected stakeholders and sectors, shall develop policies, criteria, guidelines
and tenurial instruments that will simplify and allow access of forest resilient families, and


local communities to forestland resources. The LGUs Will review all CBFMAs in their
jurisdiction to assess performance and determine membership status of the CBFMA-holder.
The Department : together with the LGUs, in consultation with affected stakeholders and
sectors, shall furthermore develop policies, and guidelines that promote partnership between
the private sector and forest- based communities in pursuit of sustainable .community forest
management activities.

SECTION 51, Areas Available for CBFMS, Subject to prior or vested rights, the CBFMS
may be implemented on all appropriate forestlands excluding the ancestral domains/ancestral
lands of ICCs/IPs. Priority will be given to degraded and denuded forestlands.

The LGU may only allow the implementation of CBFMS in watershed reservations if it shall
promote their protection and rehabilitation; Provided, however that land-use practices and
activities therein are in accordance with a management plan duly approved by the Secretary
and shall not induce severe soil erosion and surface run-off: Provided, further; That no timber
harvesting shall be allowed in forests; Provided also, That no CBEM agreements shall be
issued to non-ICCs/IPs within ancestral domains/ancestral lands, Provided finally, CBFMAs
shall not cover Certificate of Land Ownership Awards (CLOAs) and other tenurial
instruments.

SECTION 52. Community Resource Management in CBFM Areas. The management of
forestland resources in CBFM areas shall be embodied in a community resource management
plan, which shall contain the community's vision, aspirations, and strategies in the
management of forestland resources, which shall be consistent with the forestland use plan
(FLUP). Qualified communities shall be provided with appropriate long-term security of
tenure, technical, managerial and financial assistance, training; and other assistance, as the
case may be, to empower them to manage and benefit from the forestland resources on a
sustainable basis.

SECTION 53. Qualified Participants, Organized forest communities shall he given priority
to participate in the CBFM program. Organizations eligible to participate in CBFM shall
have the following qualifications:
a) Members shall be Filipino citizens; and
b) Members shall be any of the following:
1. Traditionally utilizing the resource for their livelihood;
2. Actually residing within the area for at least five (5) years; and
3. Residing adjacent and actually tilling portions of the area to be awarded.

SECTION 54. Modes of Management Agreements, The conservation, protection,
development, utilization, and management of forestlands and/or forest resources shall be
undertaken under the supervision of the State through the LGUs. The State may directly
undertake such activities or it may enter into co-production, joint venture or production
sharing agreement with qualified Filipino citizens or corporations or associations over the
management of production forestlands, subject to relevant laws, rules and regulations,
Provided, That interested local communities through their organized and duly recognized
associations shall be given priority in the grant of appropriate instruments implementing the
said agreements. Such instruments and/or agreements shall have a duration of twenty-five
(25) years, renewable for another twenty-five (25) years, under such terms and conditions as

22


may be provided by the Secretary, after observing the qualification of the succeeding
sections; Provided further, That management agreements shall not be issued in favor of any
person covering ancestral domains/ancestral lands without the free, prior and informed
consent of the concerned ICCs/Ps and the recognition and protection of ICCs/IPs rights
under pertinent laws;

Current valid and subsisting licenses, contracts, or agreements granted by the government for
the development, management, and utilization of forest resources within protection
forestlands shall be allowed to continue under the same terms and conditions until their
expiry; Provided, That no cutting or felling of trees shall be allowed within the said
protection forestlands, Provided further; That such agreements issued within ancestral
domains should have had the free, prior, and informed consent of the ICCs/IPs involved,
otherwise, such license, contracts or agreements shall be canceled and revoked for violating
the rights of said ICCs/IPs.

Al agreements entered into pursuant to this section shall be subject to the approval of and
monitoring by the LGU, Provided further; That all applications and approved agreements
shall be posted in public places.

SECTION 55. Terms and Conditions of Agreements. The Department, in coordination with
the LGUs, and, having undergone multi-stakeholder consultations shall formulate rules and
regulations covering the relevant terms and conditions thereof.

SECTION 56. Minimum Conditions for the Issuance of Co-Production, Joint Venture and
Production Sharing Agreement. The following provisions shall be the minimum conditions
for the issuance of co-production, joint venture and production sharing agreement:

a) The holder is a Filipino citizen;

b) ‘The agreement holder shall furnish the necessary management, technology and
financial services when required, as determined by the Secretary;

©) Provisions for government share of revenues and the manner of payment thereof:

d) Provision/s on consultation and arbitration with respect to the interpretation of the
agreement;

e) Provision/s for anti-pollution and environmental protection measures;

£) Provision/s prescribing the preferential use of indigenous tree species for tree
plantations: Provided, that in case of protections forestlands, only indigenous tree
species shall be used;

2) Provision/s for an effective monitoring scheme to be implemented by the LGU,
which shall include, but shall not be limited to periodic inspection of all records
and books of account of the agreement holders:

h) Commitment to community development including capacity building of local
stakeholders;

i) The submission of a management and development plan to be approved by the
LGU; and

j) Other provisions that the LGU shall impose, upon the recommendation of the
Director of the FMB, that will improve and sustain the development and
management of the forestlands and its resources, which shall include, among
others, a projection of annual income and revenues generated, to be used as basis
in the determination of government shares.



SECTION 57. Transfer. No holder of a co-production, joint venture, or production sharing
agreement or contract shall sub-contract, transfer, exchange, sell or convey the same or any of
is right or interests therein without a written authority from the LGU Moreover, no transfer
shall be authorized unless the agreement or contract has been in existence and active for at
least three consecutive years from issuance thereof: Provided, That the transferor has
faithfully complied with the terms and conditions of the said agreement or contract; the
transferee has all the qualifications and none of the disqualifications to hold the same; and the
transferee shall assume the obligations of the transferor. Failure to comply with these
conditions shall be sufficient cause for the cancellation of the agreement or contract;
Provided further, That if such agreement cover ancestral domains/ancestral lands, the free,
prior and informed consent of the ICCs/IPs involved with regard to such transfer shall be
secured, otherwise, said agreement shall be canceled.

SECTION 58, Non-Timber Forest Products. Rattan, bamboos, vines, herbs, exudates and
other non-timber forest products are integral parts of the forest ecosystem. The planting and
sustainable management of non-timber producing species shall be encouraged and supported,
Provided, That they are indigenous species. The development, management and utilization of
non-timber forest products shall be allowed in accordance with the FLUP, and corresponding
laws and regulations enforced by the LGU and consistent with guidelines to be promulgated
by the Department in compliance with national and international policy or agreements.

SECTION 59. Priority to Harvest, Utilize, Gather or Collect NTFP. \n granting permits to
harvest, utilize, gather or collect non-timber forest products, in their natural or original state
from forestlands, priority shall be given to forest resident families, local communities, and
indigenous peoples living nearest the subject forestlands; Provided, That the wildlings
collected from the forests shall be ized for nursery establishments, research and
development and shall be subject to guidelines formulated in the establishment of nurseries

SECTION 60. Silvicultural and Harvesting System. The Department shall formulate the
appropriate silvicultural and harvesting system and all measures shalll be taken to achieve an
approximate balance between growth and harvest that is consistent with the NBSAP. The use
of forest products from production forestlands shall be promoted and practiced.

SECTION 61. Mangrove forest. Cutting in mangrove forests shall be prohibited. The
Department shall formulate a program for the restoration of mangrove forests and shall
promote strategies that are consistent with biodiversity conservation or enhance biodiversity.

SECTION 62. Grazing. Land for grazing purposes shall only be limited to production
forestlands. The Department shall identify and delimit areas suitable for grazing purposes:
Provided, That no forestland fifty percent (50%) in slope or over may be utilized for grazing
purposes: Provided also, That vegetation should be sufficient for livestock prior to the grant
of such permits, Provided, further, That existing pasture lease agreements or forestland
grazing lease agreements shall be allowed to continue under the same terms and conditions
until their expiry: Provided also, That burning of grass for the purpose of grazing shall be
prohibited; Provided, finally, That abandoned or idle, expired, or canceled grazing or pasture
lands shall be subject to land use capability assessment and or land use suitability assessment
to determine their best use or combination of uses. No new grazing or pasture permit, lease,

24


or contract shall be issued, nor existing ones allowed to continue unless covered by existing
rules and regulations governing the Philippine EIS System and subject to provisions in this,
Act.

Existing pasture lease agreements or forestland grazing lease agreements shall be subject to
review and monitoring by the LGU. Recommendations resulting from the review shall be
given primary basis for actions.

Applications for new pasture lease agreements or forestland grazing lease agreements shall be
reviewed and approved by the LGU and he covered by existing rules and regulations
governing the Philippine EIS System and subject to provisions of this Act

SECTION 63. Mining and Power Generation Operations in Forestlands. Forest resources
inside. mineral reservations and permitted areas and their management and utilization are
subject to the provisions of this Act. Power generation and small-scale mining operations in
forestlands, except in protection forestlands may be allowed only after the issuance of an
ECC and in compliance with other relevant laws. Mining and power generation shall not be
allowed in protection and restoration areas, Provided, That micro-hydro or other renewable
energy device may be allowed subject to the provisions of this Act.

SECTION 64. Roads and Other Infrastructures. Roads and other infrastructure, including
the development of mineral reservations and energy resources inside forestlands, shall be
constructed with the least impairment to the resource values and with the least impact and
disturbance to biodiversity of the area found in such forestlands. Government agencies and
their contractors undertaking the construction of roads, bridges, communication and other
infrastructure facilities and installations inside forestlands shall seek prior authority from the
Department and shall comply with existing rules and regulations governing the Philippine
EIS System, Provided, That no roads or other infrastructure shall be constructed in protection
forestlands.

CHAPTER VII
WOOD-BASED INDUSTRIES

SECTION 65. Establishment and Operations of Timber-Based Industries, The State,
through the Department, may promote the establishment, operation, and development of
timber- based industries only in production forestlands.

SECTION 66. Incentives for Timber-Based Industries. All agreements pertaining to timber-
based industries shall also be subject to review by the Department under procedures to be

formulated by the Department with mandatory consultation with stakeholders. The following,
incentives are hereby granted in addition to those already provided by law:

a) All processing plants or mills shall be assured of their supply of raw materials,
preferably but not exclusively from local sources;

b) All processing plants or mills shall be granted operating permits for five (5) years
renewable for another five (5) years: Provided, That permits for processing plants

25


owned or operated by holders of timber plantation agreements or contracts shall be
co-terminus with said agreements or contracts.

Warranties to and agreements with existing integrated forest-based plants to ensure the
availability of raw materials shall be subject to the process for as long as such integrated
plants are operating.

Agreements or licenses over production forestlands granted to timber-based plants shall not
be automatically converted into any mode authorized in this Act. Holders of expired
agreements may apply for a new permit, license or agreement subject to the provisions of this
Act. Permit holders are allowed a period of twenty-five (25) years, renewable for another
twenty-five (25) years, for a maximum of fifty (50) years. Expansion in capacity of timber-
based plants shall be encouraged and the same shall be given priority access to production
forestlands and other areas available for development as source of raw materials.

SECTION 67. Export and Sale of Locally Produced Wood Products. No natural grown
trees shall be cut, gathered, harvested or removed from forests. Logs, lumber and other
finished products from tree plantations shall be exported only under such guidelines as the
Secretary may promulgate and certified as coming from the production forestlands by LGUs.
A certification process shall be formulated by the Department in consultation with key
stakeholders.

SECTION 68. Compliance of Grading Rules. No person shall sell or offer for sale any log,
lumber, veneer, plywood or other manufactured wood products in the international or
domestic market without complying with the grading rules established by the government.
Failure to adhere to the established grading rules and standards, or any act of falsification on
the volume of logs, lumber, veneer, plywood or other wood products sold in the international
ot domestic market shall be sufficient cause for the cancellation of export license, wood
processing permit, or other license or permit authorizing the manufacture or sale of such
products,

SECTION 69. Importation and Sale of Logs and Other Forest and Wood Products. Logs,
lumber, and other forest- and wood-based products may be imported to the country subject to
the authorization of the Secretary and to the tariff and duties under Presidential Decree No.
1464 as well as quarantine regulations. Any product manufactured or re-manufactured out of
imported forest and wood materials shall be allowed to be sold in the domestic or
international market: Provided, That the grading rules and standards therefore are complied
with, otherwise the sanctions in Section 69 hereof shall be imposed.

CHAPTER IX
CHARGES, FEES AND GOVERNMENT SHARE.

SECTION 70. Fees and Government Shares for the Utilization, Exploitation, Occupation,
Possession of and Activities within Forestlands. The Department shall prescribe appropriate
government shares, including and rentals for the different kinds of utilization, exploitation,
occupation, possession, or activities within forestlands: Provided, That payment of or

26


collection of such fees and rentals shall be waived for parties/industries mandated by law to
manage, conserve, develop and protect forestlands and forest resources found therein, except

administrative fees for the filing and processing of applications for the issuance and renewal
of licenses, permits, and agreements: Provided, further, That watershed administrators and/or

service contractors that have forest management agreements with the Department as provided
for under Section 84 of this Act shall also be entitled to the waiver of fees, except
administrative fees.

‘The State shall collect government shares from income, rentals or other fees, as owner of the
resource and for its regulatory function. The guidelines to be formulated should ensure
equitable sharing between the national government and LGUs. In order for the Department to
prescribe appropriate and equitable fees for the use of water and other forest resources by
parties/industries concerned for power generation, domestic and industrial irrigation, carbon
sequestration and biodiversity benefits respectively, by parties/industries concerned taking
into consideration natural resource valuation in the assignment of fees and ensuring equitable
sharing of benefits between concerned national government agency and LGU, the
Department Shall initiate the creation of an inter-agency task force for this purpose.

SECTION 71. Timber Charges. There shall be collected charges on each cubic meter of
timber cut in forestlands, using direct and indirect values, whether belonging to the first,
second, third or fourth group, twenty-five percent (25%) of the actual freight of board (FOB)
market price based on species and grading: Provided, however, That, in the case of pulpwood
and matchwood cut in production forestland, forest charges on each cubic meter shall be ten
percent (10%) of the actual FOB market price.

SECTION 72. Charges on Firewood, Branches and Other Recoverable Wood Wastes of
Timber. There shall be collected timber charges of one percent (1 9%) of the market price on
each cubic meter of firewood cut in production forestlands, branches and other recoverable
wood wastes of timber, such as timber ends, tops and stumps, when used as raw materials for
the manufacture of finished products, Provided, That the cutting of all mangrove species shall
be prohibited, Provided further, That only third of fourth group wood may be taken for
firewood, Provided finally, That, if jointly authorized by the Secretaries of both the
Department and the DA, first and second group woods may be removed from land which is
more valuable for agriculture than for forest purposes, subject to the charges in the preceding
section

SECTION 73. Charges on Non-Timber Forest Products. All other forest products of
forestlands which are not covered by the preceding section shall be exempted from any or all
forest charges, except rattans, gums, resins, beeswax, guttapercha, almaciga, resin, bamboo,
vines, herbs, exudates and other species with commercial value, which shall be charged at ten
percent (10%) of the actual FOB market price.

SECTION 74. Determination of Market Price of Timber and Non-timber Products. The
actual FOB market price of timber products shall be justly determined once a year by the
Secretary: Provided, that the Secretary shall cause the creation of a committee to be
composed of representatives of the Department, the National Economic and Development
Authority, the Department of Trade and Industry, the Bureau of Internal Revenue and the
wood and furniture industry and consumers, LGUs, academe, NGOs and other concerned

27


sectoral representatives which shall formulate the criteria and/or guidelines in the
determination of the actual FOB market price taking into consideration direct and indirect
values to be used as the basis for the assessment of the ad valorem tax, taking into
consideration production cost (developing cost, contingencies, and miscellaneous cost),
species and grade of timber, government share, reforestation, tariff duties, taxes, risk
involved, and a reasonable margin of profit for domestic and export market prices for timber
and timber products.

‘Timber charges shall also be applied to naturally growing timber and timber products
gathered from alienable and disposable lands and private lands. Timber charges collected
shall be in lieu of the administrative charge on environment and other fees and charges
imposed thereon: Provided, That planted trees and other timber products harvested from
industrial timber plantations and private lands covered by existing tiller or by approved land
application are exempted from payment of timber charges.

‘The duties incident to the measuring of timber products and the invoicing and collection of
the charges thereon shall be discharged by the LGU who shall likewise provide for the time,
manner, and place of payment of such charges under regulations of the Department.

SECTION 75. Fees for Administrative Services Rendered by the Department, Reasonable
fees shall be collected for various services rendered by personnel of the Department in
connection with their duties and responsibilities as may be requested by interested parties,
including but not limited, to surveying, mapping and other similar service activities:
Provided, That administrative fees shall be waived for services rendered to local communities
or indigenous peoples in the preparation of their management plans, Provided further, That a
percentage of the fees collected shall support the furtherance of formal forestry education.

SECTION 76. Forest Conservation and Development Fund (FCDE). A Forest
Conservation and Development Fund (FCDF) to be administered by the LGU is hereby
established to provide sustainable funds for forest protection, restoration and management,
including the operations of the municipal forest management boards, rehabilitation and
preservation of watershed areas, CBFM program, information and educational campaign as
well as scholarship programs, policy research and development. At least seventy percent
(70%) of the forest charges and government share in all products removed from the
forestlands, rentals, proceeds from sales of confiscated forest products including
conveyances, fines and penalties, and administrative fees collected shall be set aside for the
buildup of the FCDF. The fund may be augmented by grants, donations, endowment from
various sources, domestic or foreign for purposes related to their functions: Provided, That
fees collected by the LGU consistent with the management plans formulated shall directly
accrue to the said LGU's account: Provided further, that a portion of the fees collected shall
also go to the host communities, which protect and maintain these watersheds, from which
the headwaters emanate.

Disbursements from the fund shall be subject to the usual accounting and budgeting rules and
regulations: Provided, That no amount shall be disbursed to cover the operating expenses of
the Department and other concerned agencies. The forest management board will recommend
to the Municipal Council the thrusts for fund allocation.


SECTION 77. Fees from Payment for Environmental Services (PES). The ERDB shall
formulate a certain value to environmental services, taking into account the positive and
negative spillovers of the use of such resources or externalities, and establish appropriate
pricing, institutional and redistribution systems that will lead to sustainable and socially
optimal land use practices. PES is a form of payment for ecosystem services as a method of
internalizing the positive and negative externalities associated with a given ecosystem or a
specific resource use.

CHAPTER X
TREE PARKS

SECTION 78. Establishment of Tree Parks in Subdivision and tree Planting on
Roadsides. Every subdivision project to be developed after the passage of this Act shall
include the establishment of a tree park of not less than fifty percent (50%) of the required
total open’ spaces as provided in Section 2 of Presidential Decree No. 953, requiring the
planting of trees in certain places. Guidelines for the establishment of tree parks within a
subdivision shall be prepared jointly by the subdivision owner concerned, the Housing and
Land Use Regulatory Board (HLURB) and the Department. The subdivision owner shall
provide the funds for this purpose, These guidelines and allocation of funds shall be a
condition precedent in the approval of the subdivision plan.

For every major public road or irrigation construction project, the Department of Public
Works and Highways (DPWH) shall include the planting and maintenance of appropriate
trees along the road/highway or irrigation canals as landscaped areas every twenty-five (25)
kilometers thereof, whenever appropriate, and shall provide adequate funds for this purpose.
Each city and municipality shall also allocate adequate funds for the planting, care and
maintenance of trees or perennial shrubs in 'greenbelts’ or ‘green spaces! such as road/street
sides, center islands, among others.

CHAPTER XI
PROTECTION

SECTION 79. Assistance of Law Enforcement Agencies. The LGUs and the Department
may call upon law enforcement agencies and instrumentalities of the Government such as the
Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), and the
National Bureau of Investigation (NBI) for the enforcement of the forest-related laws, rules
and regulations.

SECTION 80. Role of Local Residents. \t shall be incumbent upon LGUs concerned to
render assistance in protecting and conserving forestlands within their respective territorial
jurisdiction. Qualified local residents may be deputized by the LGUs to assist in the drive
against illegal logging, kaingin-making and forestland occupation, These deputized residents
shall likewise be authorized to arrest forest violators within their communities subject to
existing laws and regulations on arrest and detention. The LGUs shall provide assistance to
these deputized residents in cases instances of citizens’ arrests.

SECTION 81. Prevention of Forest Fires. The concerned LGUs, in cooperation with the

29


Bureau of Fire Protection (BFP) and the Department, shall formulate and implement a fire
prevention and control program.

SECTION 82. Control of Forest Pests and Diseases. The Department shall. likewise
formulate and implement a national integrated forest pest and disease management program
Including quarantine procedures for imported forest seeds and forest products to prevent,
minimize or control forest pests and diseases in the reforestation strategies.

SECTION 83. Prohibition on Genetically Engineered and Transgenic Trees.
Planting/introduction andlor use of genetically engineered (GE) and transgenic trees are
prohibited in all forestlands.

SECTION 84. Information and Rewards System. The LGU shall establish an information
and rewards system as part of the community's participation in the protection of forest
resources. The rewards shall be payable immediately upon the establishment of prima facie
proof of violation. When an information given leads to the seizure of logs or timber and other
forest product and results in a conviction, the informer shall also be entitled to twenty percent
(20%) of the gross value of the recovered or seized forest resource. The implementation of
the rewards system shall be in collaboration with the Department, the Forest Management
Board and the Philippine National Police.

CHAPTER XII
RESEARCH, EDUCATION, T~ALNING AND EXTENSION

SECTION 85. Research and Technology Development Transfer. Research and technology
development transfer shall be strengthened to support sustainable management of forest
resources. The Department, the Department of Science and Technology (DOST), the
Commission on Higher Education (CHED), and the State Universities and colleges shall
within one (1) year from the passage of this Act, prepare a comprehensive sustainable
national forestry and environmental research and technology development and transfer
program in furtherance of sustainable forest management which shall be implemented,
monitored, and reviewed in accordance with existing research management systems.
Adequate and sustainable funds to implement research and technology development plans
and transfer program shall be provided by each of the aforementioned agencies and
institutions under the General Appropriations Act. Appropriate funds shall be allotted for
research and development.

SECTION 86. Public Information, Education and Advocacy Campaign. With the support
from LGUs, NGOs, media and other organizations, the Department, the Philippine
Information Agency (PIA), the Department of Education (DepEd), CHED, State-owned and
private universities and colleges shall formulate and implement a nationwide program for
sustained public information and advocacy campaign for forest and natural resources
conservation and sustainable forest development and management. The DepEd shall include
subjects on environment, forest and natural resources in the curricula for elementary and high
school education. The CHED shall likewise include mandatory ecology and environment
courses in the general education curricula. Congress shall allocate funds to the Department
for the purpose of coordinating a systematic campaign to promote community ecological
awareness, including the preparation of informational and educational materials therefore. A

30


percentage of appropriations specified in Section 122 shall be set aside for this purpose.

SECTION 87. Formal Forestry, Agroforestry and environmental Education.- The CHED
in collaboration with the Department, the Board Of Examiners for Foresters of the
Professional Regulations Commission (PRC), Philippines Forestry Education Network,
Philippine Agroforestry education and Research Network, Environmental Education Network
of the Philippines and the duly accredited national professional foresters organization shall
actively pursue the rationalization of formal forestry education by assigning higher weights
‘on non-timber extraction subjects. The licensure exam shall require minimum units on forest
restoration related subject and the establishment of centers of excellence in forestry and
environmental’ education to ensure high quality manpower output to meet the needs of the
forestry sector and the country as a whole. The following areas shall be strengthened:

a. Sustainable forest management;

b. Natural resource management;

c. Biodiversity conservation;

d. Wildlife conservation;

e. Wildlife management;

f Entrepreneurship on non-timber forest resources;

g. Environmental laws:

h. Forest restoration technology;

1. Environmental science; and

J. Community development.

SECTION 88. Continuing Education on Forestry. A non-formal program of continuing
education shall be established to maintain the growth of the forestry profession. The PRC
Board of Examiners for Foresters and the Civil Service Commission (CSC) shall provide the
guidelines for a program in continuing education in forestry. In cooperation with academic
institutions, the Department shall develop the infrastructures to institutionalize non-formal
continuing education for the forestry sector.

SECTION 89. Training Centers, \n coordination with TESDA, DepEd, CHED and State
Universities and Colleges (SUCs) and other relevant institutions, stakeholders and local
communities, the Department shall establish and institutionalize a network of training
centers in strategic parts of the country to provide regular and up-to-date training on the
various aspects of sustainable forest management and restoration to forest guards, LGUs,
NGOs, local communities, and indigenous peoples. Furthermore, the Department shall ensure
that personnel appointed to critical and sensitive positions undergo training to prepare them
to discharge their duties and responsibilities professionally, efficiently and effectively.

SECTION 90. Policy Research and Development Network. The Department, through the

Ecosystem Research and Development Bureau (ERDB), and in collaboration with the SUCs
and private university and institutions, shall form part of a network to serve as the primary
policy research and development center for forestry and natural resources management. The
Network shall perform its functions in close coordination with the Department and other
policy research institutions in the count.ly. It shall assist the Department in the formulation,
review, and evaluation of proposed and existing policies on forestry and natural resources
management.

31


CHAPTER XIII
OFFENSES AND PENALTIES

SECTION 91. Non-Establishment of Tree Parks/Communal Forests. Any city,
municipality or subdivision owner who fails to establish tree parks as provided in Sections 76
herein shall be punished by a fine of not less than One Hundred Thousand Pesos
(P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00). The subdivision
plan will not be given approval until guidelines have been formulated and funds have been
allocated for the purpose.

SECTION 92. Harvesting, Gathering and/or Collecting timber or Other Forest Products
without Authority. Any person who shall harvest, cut, gather, collect, or remove timber or
other forest products from any forestland, or timber from all forestlands, whether protection
or production forestlands, or inside alienable and disposable public land and private lands
except as provided, or forest resources in alienable and disposable lands without authority
from the Secretary or found to possess the same without pertinent required legal documents
shall be punished by imprisonment ranging from prision mayor minimum period to reclusion
temporal minimum period and/or a fine equivalent to ten (10) times the value of the said
forest product but not less than Fifty Thousand Pesos (50,000.00): Provided, That in the case
of partnerships, associations or corporations, the president, managing partner, and general
manager shall be held liable, and if such officer is an alien, he shall, in addition to the penalty,
be deported without further proceedings on the part of the Bureau of Immigration and
Deportation. Offenders who are public officials shall be deemed automatically dismissed
from office and permanently disqualified from holding any elective or appointive position.
All timber or any forest products cut, gathered, collected, removed, or possessed and all the
conveyances, machinery, equipment, implements, work animals, and tools used in connection
with this violation shall be seized and confiscated in favor of the State.

SECTION 93. Ilegal Cutting as an Act of Economic Sabotage. Any of the acts enumerated
in the preceding section committed by an armed group or by any group through organized
and systematic manner, for commercial purposes, shall be considered an act of economic
sabotage punishable by reclusion perpetua.

The commission of any of the prohibited acts by two or more individuals with or without the
aid of any mechanical device shall constitute a prima facie evidence that the act is organized

Any permittee/agreement holder who shall buy logs from unlicensed loggers or loggers
operating without permits shall be considered in violation of this Act and, upon conviction,
shall also be punished with reclusion perpetua.

SECTION 94. Use of Illegally Cut Timber in Government Infrastructure Projects.
Contractors of government infrastructure projects shall obtain certification from the
Department that the logs or lumber to be used therein were obtained from legitimate sources.
‘The use of illegally cut naturally grown timber from protection forests or illegally cut timber
from production forests in government infrastructure projects shall be sufficient cause for the
imposition of penalties provided in Section 88, on harvesting of forest products without
authority, and Section 89, on illegal cutting as an economic sabotage, including the

32


withholding of the payment to the contractor.

SECTION 95. Grazing Livestock on Forestlands without a Permit. Any person found to
have caused the grazing of livestock in forestlands and grazing lands without an authority
under a lease or permit to graze, upon conviction, shall be penalized with imprisonment of
not less than two (2) years nor more than four (4) years and a fine equivalent to ten times the
regular rentals. due in addition to confiscation of the livestock and all improvements
introduced in the area in favor of the government, and shall restore the affected area into the
original state of the natural resource; Provided, That in case the offender is a corporation,
partnership, or association, the officer or director thereof who directly caused or ordered
such shall he liable. In case the offender is a public officer or employee, he shall, in addition
to the above penalties, be deemed automatically dismissed from office and permanently
disqualified from holding any elective or appointive position in the government service.

SECTION 96. Unlawful Occupation or Destruction of Forestlands. Any person who,
without authority from the Secretary, enters and occupies or possesses, or engages in kaingin-
making for his own private use or for others, any forestland or grazing land, or in any manner
destroys such forestland or part thereof, or causes any damage to the timber stands and other
forest product found therein, or assists, aids or abets another person to do so, or sets a fire, or
negligently permits a fire to be set therein, or refuses lawful orders to vacate the area when
ordered to do so shall, upon conviction, be punished with penalties in the amount of not less
than One Hundred Thousand Pesos (P100,000,00) nor more than Five Hundred Thousand
Pesos (P500,000.00) and imprisonment of not less than six (6) years nor more than twelve
(12) years for each offense: Provided, That in the case of an offender found guilty of kaingin-
making, the penalty shall be imprisonment of not less than ten (10) years nor more than
twelve (12) years and a fine equivalent to eight times the regular forest charges due on the
forest products destroyed without. prejudice to payment of the full cost of rehabilitation of
the occupied areas as determined by the Department: Provided, further, That the maximum of
the penalty prescribed herein shall be imposed upon the offender who repeats the same
offense, and double the maximum penalty upon the offender who commits the same offense
for the third time or more. In all cases, the court shall further order the eviction of the
offender from the area occupied and the forfeiture to the government of all improvements
made therein, including all vehicles, domestic animals and equipment of any kind used in the
commission of the offense. If not suitable for use by the Department, said improvements,
vehicles, domestic animals and equipment shall be sold at public auction, the proceeds from
which shall accrue to the FCDF. If the offender is an alien, he shall be deported after serving
his sentence and payment of fines, without any further proceedings. An offender who is a
government officer or employee, shall, in addition to the above penalties, be deemed
automatically dismissed from office and permanently disqualified from holding any elective
or appointive position in the government service.

SECTION 97. Illegal Conversion of City or Municipal Parks, Communal Forests, and
Tree Parks in Subdivisions. Any person found to have converted or caused the conversion of
a city or municipal park or communal forest, or tree parks within subdivisions established
pursuant to Sec. herein and Section 2 of Presidential Decree No. 953, requiring the planting
of trees in certain places, into other uses including the construction of permanent buildings
therein, or in any manner destroys or causes any damage to the timber stands and other forest
product found therein, or assists, aids or abets another person to do so, or sets a fire, or

33


negligently permits a fire to be set therein, upon conviction, shall be penalized by
imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not less than
One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos
(P500,000.00), or both fine and imprisonment at the discretion of the Court. The offender
shall likewise be imposed a fine equivalent to eight times the commercial value of the forest
products destroyed without prejudice to payment of the full cost of rehabilitation of the areas
as determined by the Department: Provided, further; That the maximum of the penalty
prescribed herein shall be imposed upon the offender who repeats the same offense, and
double the maximum penalty upon the offender who commits the same offense for the third
time or more. The court shall further order the forfeiture to the government of all
improvements made therein, including all vehicles, domestic animals, and equipment of any
kind used in the commission of the offense. If not suitable for use by the Department, said
improvements, vehicles, domestic animals and equipment shall be sold at public auction, the
proceeds from which shall accrue to the FCDF, An offender who is a government officer or
employee, in addition to the above penalties, shall be deemed automatically dismissed from
office and permanently disqualified from holding any elective or appointive position in the
government service,

SECTION 98. Misdeclaration or Falsification of Reports on Forest Resource Inventory,
Scaling, and Survey by a Government Official or Employee. Any public officer or employee
who knowingly misdeclares or falsifies reports pertaining to forest resource inventory,
scaling, survey, and other similar activities which are contrary to the criteria and standards
established in the rules and regulations promulgated by the Secretary thereof, after an
appropriate administrative proceeding, shall be dismissed from the service with prejudice to
re-employment. Upon conviction by a court of competent jurisdiction, the same public officer
or employee shall further suffer an imprisonment of not less than eight (8) years nor more
than twelve (12) years and a fine of not less than One Hundred Thousand Pesos
(P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00) and the
termination of license to practice forestry if the offender is a professional or registered
forester: Provided, That the inventory, survey, scale, classification, and similar reports
referred herein shall be rendered null and void.

SECTION 99. Unlawful Operation of Sawmills. Any person operating a sawmill or mini-
sawmill without authority from the Secretary shall be punished by a fine of not less than Two
Hundred Fifty Thousand Pesos (P25, 000.00) and confiscation of the sawmill or mini-
sawmill and complementary equipment in favor of the government for appropriate
disposition.

SECTION 100. Unlawful Operation of Wood Processing Plants and Downstream
Industries. Any person operating a wood processing plant or downstream. forest-based
industry without authority from the Secretary, shall be punished by, upon conviction by a
court of competent jurisdiction, imprisonment of not less than eight (8) years nor more than
twelve (12) years and a fine of not less than Five Hundred Thousand Pesos (P500,000.00)
and confiscation of the wood processing plant and complementary equipment in favor of the
government. The Department shall promulgate the necessary guidelines. subject to the
provisions of this Act that will define the terms and .conditions for the operation of a wood
processing plant andlor other downstream forest-based industries.

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SECTION 101. Prohibition on the Issuance of Tax Declaration on Forestlands. - Any
public officer or employee who issues a tax declaration for any purpose on any part of
forestlands, upon conviction, shall be penalized with imprisonment for a period of not less
than four (4) years nor more than eight (8) years and perpetual disqualification from holding
an elective or appointive office. The tax declaration shall be considered null and void. Tax
declarations within protection forestlands shall be reviewed and be canceled after due
process.

SECTION 102. Unlawful Possession of Implements and Devices Used by Forest Officers.
‘Any person found possessing or using implements and devices used by forest officers shall be
penalized with imprisonment of not less than eight (8) years nor more than twelve (12) years
and a fine of not less than One Hundred Thousand Pesos (P100,000.00) nor more than Five
Hundred Thousand Pesos (P500,000.00) in addition to the confiscation of such implements
and devices and the automatic cancellation of any license agreement, license, lease or permit.

Any forest officer who willingly allowed unauthorized person(s) to use these implements and
devices under his care shall be penalized with imprisonment of not less six (6) years and one
(1) day to no more than twelve (12) years and a fine of not less than One Hundred Thousand
Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00).

In addition, the said forest officer shall be dismissed from the service with prejudice to
reinstatement and with perpetual disqualification from holding an elective or appointive
position.

SECTION 103. Unauthorized Introduction of Logging Tools and Equipment Inside
Forestlands. \t shall be unlawful for any person or entity to possess, bring, or introduce any
logging tools or equipment inside forestlands without prior authority, from the Secretary or
his duly authorized representative. Any person found guilty of illegal possession of said
logging tools or equipment shall be liable to imprisonment of six (6) years and one (1) day to
twelve (12) years or a fine of not less than One Hundred Thousand Pesos (P100,000.00) nor
more than Five Hundred Thousand Pesos (P500,000.00) or both imprisonment and fine, and
confiscation of said logging tools and equipment in favor of the government.

SECTION 104. Non-Payment and Non-Remittance of Forest Charges. Any person who
fails to pay the amount due and payable as forest charges to the government shall not be
allowed to transport, convey, sell, nor use the timber or forest product. Moreover, failure to
pay within thirty (30) days upon assessment of forest charges shall be a ground for
confiscation of the said timber or forest product in favor of the government. Any person who
fails or refuses to remit to the proper authorities said forest charges collectible pursuant to the
provisions of this Act or the National Internal Revenue Code, as amended, or who delays,
obstructs or prevents the same, or who orders, causes or effects the transfer or diversion of
the funds for purposes other than those specified in said Acts shall, upon conviction, be
imprisoned for not less than six (6) years nor more than ten (10) years and fined from One
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos
(P500,000,00). If the offender is a corporation, partnership, or association, the officers and
directors thereof shall be liable.

SECTION 105. Institution of Criminal Action by Forest Officers. Any forest officer shall

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arrest any person who has committed or is about to commit, or is committing in his presence
any of the offenses defined in this chapter. The tools, animals, equipment and conveyances
used in committing the offense, and the forest products cut, gathered, taken or possessed by
the offender in the process of committing the offense shall also be seized and confiscated in
favor of the government. The arresting forest officer shall thereafter deliver within thirty-six
(36) hours from the time of arrest or seizure both the offender and the confiscated forest
products, conveyances, tools and equipment, or the documents pertaining to the same, and
file the proper complaint with the appropriate official designated by law to conduct
preliminary investigation and file information in court. If the arrest and seizure are made in
the forest far from authorities designated by law to conduct preliminary investigations, the
delivery to and filing of the complaint with the latter shall be done within a reasonable time
sufficient for ordinary travel from the place of arrest to the place of delivery. The seized
forest products, materials, conveyances, tools and equipment shall be immediately disposed
of in accordance with the regulations promulgated by the Secretary.

The Secretary may deputize any agency, barangay official, or any qualified person to protect
the forest and exercise the powers or authority provided for in the preceding paragraph.
Reports and complaints regarding the commission of any of the offenses defined in this
chapter not committed in the presence of any forest officer or any of the deputized officers
shall immediately be reported to the forest officer assigned in the area where the offense was
allegedly committed. Thereupon, the investigating officer shall receive the evidence
supporting the report or complaint and submit the same to the appropriate official authorized
by law to conduct a preliminary investigation of criminal cases and file the information in
court.

The Secretary of Justice shall designate in every city and province a special prosecutor who
shall file charges against forest violators to ensure their speedy prosecution.

SECTION 106. Liability of Custodian of Confiscated Forest Products. Any public officer
who fails to produce the timber or forest products, including tools, conveyances, equipment,
and devices in his custody pursuant to a seizure or confiscation made thereon, or who shall
appropriate, take, misappropriate, or shall permit another person to take such timber forest
products wholly or partially, shall suffer the penalty provided for in Article 217, on
Malversation of Public Funds or Property, of the Revised Penal Code. In addition, the said
public officer shall be dismissed from service with prejudice to reinstatement and with
perpetual disqualification from holding any elective or appointive office.

CHAPTER XIV
ADMINISTRATIVE PROVISIONS

SECTION 107. Strengthening of the Forest Management Sector. Only qualified
environmental management professionals and practitioners shall be appointed to the positions
of Director and Assistant Director of the FMB as well as to all other positions where the
services of professional foresters e.g. CENRO are required in accordance with existing laws
and the relevant rules and regulations issued by the Civil Service Commission (CSC) and the
Professional Regulations Commission (PRC).

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SECTION 108. Administrative Authority of the Secretary or his Duly Authorized
Representative to Order Confiscation. In all cases of violations of this Act or other forest
laws, rules, and regulations, the Secretary or his duly authorized representative may order the
confiscation of forest products illegally harvested, cut, gathered, removed or possessed ot
abandoned, and all conveyances used either by land, water, or ait as well as all machinery,
equipment. implements, and tools used in the commission of the offense and to dispose of the
same in accordance with pertinent laws, regulations, or policies on the matter.

The Secretary may order that the sale of confiscated perishable forest resources at public
auction even before the termination of the judicial proceedings, following the applicable
Rules on Evidence, with the proceeds of such sale kept in trust to await the outcome of the
judicial proceedings.

No court of the Philippines shall have jurisdiction to issue any Writ of Replevin, restraining
order, or preliminary mandatory injunction in any case involving or growing out of any action
by the Secretary or his duly authorized representative in the exercise of the foregoing
administrative authority.

SECTION 109. Cancellation of Permits, Licenses, Agreements. The Secretary motu
proprio or upon the filing of a petition, may cancel any permit, license or agreement.

SECTION 110. Administrative Authority of the Secretary to Impose Fines. In all cases of
violations of this Act and other forest laws, rules and regulations where fine is the principal
penalty, the Secretary is hereby authorized to impose administratively the penalty consisting
of the amount and the schedules of the fine which shall be ollicially published in a national
newspaper of general circulation.

SECTION 111. Authority of Forest Officers. When m the performance of their official
duties, forest officers or other government officials or employees duly authorized by the
Secretary or deputized as such shall have free entry into areas covered by a contract,
agreement, license, lease or permit. Forest officers are authorized to inspect and to open
closed vans suspected to contain illegally harvested, collected or transported forest product:
Provided, That it is done in the presence of the shipper or consignee or two (2) responsible
public officials in the locality. Provided further, That in cases where entry shall be in
ancestral domains/ancestral lands, said persons shall secure the free, prior and informed
consent of the ICCs/IPs therein, Forest officers are authorized to administer oath, take
acknowledgment in official matters connected with the functions of their office, or take
testimony in official investigations conducted under the authority of this Act and the
implementing rules and regulations issued by the Secretary pursuant thereof

SECTION 112. Visitorial Powers. The Secretary or his duly authorized representative shall,
from time to time, investigate, inspect, and examine records and other documents except bank
records related to the operation of any person granted the privilege, contract, or agreement to
utilize forest resources to determine compliance with the terms and conditions stipulated in
the grant, contract or agreement, this Act, and pertinent laws, rules, and regulations.

SECTION 113. Transparency. Records, agreements, applications and all other pertinent
documents as well as conditions to the same shall be made available to the public at all times.

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Records pertaining to the specific limits of forestlands shall also be made available to the
public.

Moreover, the Department shall furnish all provincial, municipal and city government units
copies of the maps of permanent forestlands located within their respective territorial
jurisdictions.

SECTION 114. Other Incentives. Twenty percent (20%) of the value of confiscated
materials shall be used as incentives to informants, forest management council, forest
management boards, including Department personnel. They shall also be entitled to free legal
assistance should legal cases be filed against them in the performance of official duties.

SECTION 115. Suits and Strategic Legal Actions against Public Participation and the
Enforcement of This Act. Where a suit is brought against a person who filed an action as
provided in Section 113 of this Act, or against any person, institution or government agency
that implements this Act, there being no grave abuse of authority, it shall be the duty of the
investigating prosecutor or the court, as the case may be, to immediately make a
determination not exceeding thirty (30) days whether said legal action has been filed to
harass, vex, exert undue pressure or stifle such legal recourses of the person complaining of
or enforcing the provisions of this Act. Upon determination thereof, evidence warranting the
same, the court shall dismiss the case and award attorney's fees and double damages. This
provision shall also apply and benefit public officers who are sued for acts committed in their
official capacity, there being no grave abuse of authority, and done in the course of enforcing,
this Act.

SECTION 116. Citizens’ Suits. For purposes of enforcing the provisions of this Act or its
implementing rules and regulations, any citizen may file an appropriate civil, etiminal or
administrative action in the proper court against:

a. any person who violates or fails to comply with the provisions of this Act or
its implementing rules and regulations, or

b. the Department or other implementing agencies with respect to orders, rules
and regulations issued inconsistent with this Act; and

c. any public officer who willfully or grossly neglects the performance of an Act
specifically enjoined as a duty by this Act or its implementing rules and
regulations, or abuses his authority in the performance of his duty, or in any
manner, improperly performs his duties under this Act or its implementing
rules and regulations: Provided, however; That no suit can be filed until after a
thirty-day notice has been given to the public officer and the alleged violator
concerned and no appropriate action has been taken thereon.

The court shall exempt such action from the payment of filing fees, and shall, likewise, upon
prima facie showing of the non-enforcement or violation complained of, exempt the plaintiff
from the filing of an injunction bond for the issuance of a preliminary injunction,

SECTION 117. Protection to Witnesses in Cases Involving Violation of Forestry Laws.
Witnesses to violations of this Act or other forestry laws and regulations, including the
immediate members of the family of said witnesses shall be given protection, security and
benefit, subject to the provisions of Republic Act No. 6981, otherwise known as "The

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Witness Protection, Security and Benefit Act" and its implementing rules and regulations.

SECTION 118. Rule-Making Authority. In consultation with the NCIP, the DILG; the
Department of Finance, the leagues of provinces, cities, and municipalities, other government
agencies mentioned herein and other relevant stakeholders (i.e. academic institutions,
NGOS), the Department shall promulgate the implementing rules and regulations within one
(1) year from the effectivity of this Act.

SECTION 119. Congressional Oversight Committee, There is hereby created a
Congressional Oversight Committee composed of seven (7) members from the Senate
Committee on Environment and Natural Resources and seven (7) members from the House of
Representatives Committee on Natural Resources. The Chairpersons of the corresponding
committees shall also be the Co-chairpersons of the Oversight Committee. The secretariat of
the Oversight Committee shall be drawn from the existing secretariat personnel of the
committees comprising the oversight and the funding shall be taken from the appropriations
of both the House of Representatives and the Senate.

CHAPTER XV.
FINAL PROVISIONS

SECTION 120. Transitory Provisions. Upon the approval of this Act, the Department shall
evaluate the conditions of all forestlands covered by existing TLAs, licenses, or permits and
the like, which shall be allowed to continue until their expiry; Provided, That cutting or
felling of trees in forests shall be prohibited, Provided further, that such TLA, license, permits
and other instruments shall be terminated for the following grounds:

a) When the licensee has been found to be a dummy of an otherwise disqualified or
unqualified person;

b) When the licensee has been found to be farming out the license or receiving royalty
of any kind:

©) When the licensee has been found to be cutting or operating outside the limits of the
license or within an area specifically designated or sub-classified by the Department
as protection forestland:

d) When the licensee has been found to be allowing illegally-cut timber to be invoiced
under its license:

) When the licensee has been found to be inducing any other person to log in other
areas in violation of the Department's regulations;

f) Failure to submit to the Department the required copies of auxiliary invoices
covering timber manifested under the license;

g) Failure to leave undamaged an adequate stand of young trees for residual growing
stock or for seeding purposes and to employ the necessary number of laborers needed
for timber management work;

hh) When the licensee has, for the third time after written warning, intentionally cut,
injured or destroyed trees marked by forest officers and unmarked poles and saplings
for future growing stock, seeding, or protection;

i) Failure to employ the required number of concession guards as determined by the
Department;

J). Failure to protect the concession or license area or parts thereof from being converted
into kaingin, or from illegal timber cutting, and other forms of trespass;

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k) When the licensee has been found to have failed to put up the processing plant for
the area within the required period, when made a condition in the award of the area
and the grant of the license;

})_ Failure to pay pending forest accounts;

m) Failure to maintain and make conspicuous the approved and established boundaries
of his concession or license area;

n) Failure to suspend operations within a conflicted area when so required by the
Department or its authorized representatives, pending formal decision of the conflict:

0) Allowing a contractor to operate the license area or conc and Violation of any
of the terms and conditions of the license, the NIPAS Act and its implementing rules
and regulations, the Wildlife Resources Conservation and Protection Act, or any of
the provisions of law on internal revenue and labor, and Department regulations.

Any of the violations enumerated above will be cause for the immediate cancellation of the
permit, timber license agreement or any other similar instrument.

Provided, That the Department shall immediately take control of the land and consult with
the concerned LGU and/or local communities for the proper management of the area covered
by the said canceled permit, TLA or instrument.

‘The relevant agencies shall formulate the appropriate rules and regulations for the
implementation of this Act.

SECTION 121. Appropriations. The amount necessary to initially implement the provisions
of this Act shall be charged against the appropriations of the Department of Environment and
Natural Resources in the current General Appropriations Act Provided further that a share
from the VAT on oil and natural gas, emission testing tax, flood control tax, road users tax,
and the Reforestation, Watershed Management, Health and/or Environment Enhancement
Fund, pursuant to Section 4 of Republic Act No. 9136, otherwise known as the Electrie Power
Industry Reform Act of 2001 (EPIRA), and its Implementing Rules and Regulations (IRR),
shall be appropriated to fund provisions in this Act. Thereafter, such sums as may be
necessary to fully implement the provisions of this Act shall be included in the annual
General Appropriations Act. For local government units, the funding requirements shall be
taken from their internal revenue allotment (IRA) and other sources of income including the
income derived from the shares from the different modes of agreement.

SECTION 122. Separability Clause. Should any provision herein be declared
unconstitutional or invalid, the same shall not affect the validity or legality of the other
provisions,

SECTION 123. Repealing Clause. Subsections (b), (d), (e). (0), (@). and (i) of Section 4 of
Act No, 3915; Republic Act Nos. 460 and 7161; Presidential Decree Nos. 705, 1153,
1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order Nos. 277, series of
1987, and Executive Order No. 725, series of 1981, are hereby repealed, and all laws, orders,
rules and regulations, or any part thereof which are inconsistent herewith are likewise hereby,
repealed or amended accordingly; Provided, That this Act shail not in any manner amend the
IPRA, NIP AS law and the Wildlife Resources Act.

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SECTION 124, Effectivity. This Act shall take effect thirty (30) days from the date of its
publication in the Official Gazette or in: at- least two (2) national newspapers of general
circulation.

Approved,

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