Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH CONGRES S
Second Regular Session
HousHBILLNo.8816
Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
|St District, Ilocos Norte
EXPIANATOHy NOTE
That  the  Philippines  is  a  maritime  nation  is  basically  reflected  in  its
fundamental  law  which  speaks  of the  national  territory  as  comprising  "the
Philippine czrcfezz)e/czgo,  with all  the  z.s/cJ#c7s ¢72d wcr/era  embraced therein,  and
all other territories  over which the Philippines has  sovereignty or jurisdiction,
consisting of its terrestrial,  fluvial,  and aerial domains,  including its  Je„j./orz.¢/
sea, the  seabed, the  shosofl, the  insular  shelves,  and other  submarine  areas.
(Article I, National Territory,  1987 Philippine Constitution).  It continues, "The
waters   around,   between,   and  connecting  the   islands   Of  the   archipelago,
regardless of their breadth and dimensions, form part of the  internal waters of
the Philippines." (italics supplied)
As a maritime or a "blue economy", our country is blessed with a vibrant
fishing industry, having one of the most bio-diverse marine habitats, and with
some  of the  best beaches  in  the  world  (the  pride  of our coastal  and  marine
tourism). We are also one of the top suppliers of seafarers in the global shipping
industry.
In   view,   however,   of  the   political   and   economic   headwinds   in   the
international  arena,  there  is  a  compelling  need  for  us  to  develop,  manage,
protect   and   preserve   our   marine   ecosystems   and   coastal   resources   in   a
sustainable, inclusive and resilient manner.
On the basis  of the  foregoing  considerations, the early  approval of
this measure is earnestly recommended.
FERDINAND ALEXANDER A. MARCOS


Republic of the Philippines
HOUSE 0F REPRESHNTATIVHS
Quezon City
NINETEENTH CONGRES S
Second Regular Session
HousEBILLNo.8816
Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
|st District, Ilocos Norte
ANACT
ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY, PROMOTING
STEWARDSHIP AND SUSTAINABLE DEVELOPRENT 0F COASTAL
AND MARINH HCOSYSTHMS AND RHSOURCHS
Be  if  enacted  by  the  Senate  and  House  al  Representatives  of the  Philippines  in
Congress assembled:
CRAPTER I
GHNERAL PROVISIONS
SECTION 1. Short Title. -This Act shall be known as the "Blue Economy Act."
SEC. 2. Declaration of Policy. -It shall be the policy of the State to:
a)  Adopt  blue  economy   as  a  framework  for  sustainable  and   safe  use  and
development of marine wealth within our maritime zones,  as a pillar of our
national economy and patrimony;
b)  Exercise  stewardship  of our  seas  and  coasts,  and  protect  and  conserve  the
health and resilience of marine and coastal ecosystems and habitats to promote
the well-being, prosperity and security of present and future generations;
c)  Preserve  our  maritime  heritage,  recognize the  social,  cultural,  and  historical
value of our seas and coasts,  and foster public understanding and respect of
the  value  of  our  seas  and  coasts  to  build  a  strong  foundation  for  social
responsibility;
d)  Enrich scientific understanding of marine and coastal ecosystems, the benefits
we gain from these ecosystems (for example, through carbon sequestration),
their changing  conditions  and the  causes thereof:  and use the  best available
scientific knowledge to infoml decisions affecting our seas and coasts and to
enhance    our   capacity    to    respond    and    adapt    to    changing    maritime
envirorments;
e)  Foster   international   cooperation,   and   exercise   rights   and  jurisdiction in
accordance   with   applicable   international   laws,   including   on  freedom   of


navigation;
D   Ensure    a   whole-of-nation    approach   and    a   comprehensive,    integrated
framework  for the  stewardship  of our seas  and  coasts to  facilitate  cohesive
action   of   the   National   Government,   local   authorities,   academe,   non-
governmental organizations, the private sector, and the public.
SHC. 3. Definition of Terms. -As used in this Act:
(a),4gztczcaf//c/re   refers   to   the   farming   of  aquatic   organisms   including   fish,
mollusk,   crustaceans   and   aquatic   plants.   Farming   implies   some   sort   of
intervention  in  the  rearing  process  to  enhance  production,  such  as  regular
stocking,   feeding,   protection   from   predators,   etc.   Farming   also   implies
individual or corporate ownership of the stock being cultivated, the planning,
development   and   operation   of  aquaculture   systems,   sites,   facilities   and
practices, and the production and transport;
(b).4g#asz./w.czt//#re  refers  to   a  multi-purpose  production  system  that  allows
production of fish in a mangrove reforestation project;
(c) B/2je eco7!om); refers to a practical ocean-based economic model using green
infrastructure   and   technologies,   innovative   financing   mechanisms,   and
proactive institutional arrangements for meeting the twin goals of protecting
our oceans and coasts and enhancing its potential contribution to  sustainable
development,    including    improving    human    well-being,    and    reducing
environmental risks and ecological scarcities;
(d) Co7#mercz.cz//sfej.ng refers to the harvesting of fish, either in whole or in part,
for sale, barter or trade;
(e) EcosjJs/em  services  refer  to  the  flow  of benefits  which  humans  gain  from
ecosystems.   through   biological   processes   and   climate.   hydrological   and
biochemical cycles and experiences that contribute to intangible culture :
(I) E#v7.ro#me#/cz/-eco"omz.c  crcco##fjng  refers  to  a  systematic  way  to  measure
and report on stocks and flows of natural assets and resources - both biotic and
biotic,  renewable  and non-renewable  -  and  ecosystem  services  to  determine
the  contribution  of the  environment to  the  economy  and  the  impact  of the
economy on the environment;
(g) E#vz.ro#"e#Jcz/-eco#omj.c czccoat#fs refer to  statistical information,  in physical
or monetary terms, about the extraction of natural resources.  their use within
the economy, natural resource stock levels, the changes in those stocks during
a   specific   period,   and   such   other   economic   activities   related   to   the
envirorment;
(ti)Integrated  marine  and  coastal  area  management  refers  to  a.  participatory
process for decision-making to prevent, control, or mitigate adverse  impacts
from   human   activities   in  the   marine   and   coastal   environment,   and   to
contribute to the restoration of degraded coastal areas;


(i) J#ves/77!e#f promofj.o#  oge#cjes  refer to  goverrment entities  created  by  law,
executive order, decree or other issuance, in charge of promoting investments,
granting  and  administering  tax  and  non-tax  incentives,  and  overseeing  the
operations of the different economic zones and freeports in accordance with
their respective  special laws.  These  include the Board of Investments (801),
Regional  Board  of Investments-Autonomous  Region  in  Muslim  Mindanao
(RBOI-ARMM),   Philippine   Economic   Zone   Authority   (PEZA).    Bases
Conversion  and  Development  Authority  (BCDA),  Subic  Bay  Metropolitan
Authority   (SBMA),   Clark   Development   Corporation   (CDC),   John   Hay
Management  Corporation  (JHMC),   Poro   Point  Management  Corporation
(PPMC),   Cagayan   Economic   Zone   Authority   (CEZA),   Zamboanga  City
Special    Economic    Zone    Authority    (ZCSEZA),    PIHVIDEC    Industrial
Authority  (PIA),  Aurora  Pacific  Economic  Zone  and  Freeport  Authority
(APECO),  Authority   of  the   Freeport  Area  of  Bataan  (AFAB),   Tourism
Infrastructure  and Enterprise Zone  Authority  (TIEZA),  and all  other similar
existing authorities or that may be created by law;
¢) A4¢rz.c2f//#re refers to the farming of organisms, both plants and animals, in an
aquatic medium or environment which may be completely marine (sea), or sea
water  mixed  to  various  degrees  with  fresh  water.   This  definition  would
include both the sea and inland brackishwater areas;
(k) A4cz7~z.#e scz.e#fj#c res'eczrcfe refers to any research activity, which is conducted
for  exclusively  peaceful  purposes,  for  the  purpose  of increasing  scientific
knowledge  about  the  marine  environment,  including  all  natural  resources,
toward   the   benefit   of  mankind   and   according   to   the   United   Nations
Convention on the Law of the Sea;
(I)  A4crr7t7.7"e   c7o772¢z.#  c";czre#ess  refers  to  the   effective  understanding  of  any
activity that could impact upon the security, safety, economy or environment;
(in)             A4czr7tj.7»e spczfjcz/p/cr#7?z.ng refers to a process by which human activities
in  maritime  zones   are  analyzed  and  organized,  based   on  best  available
scientific   knowledge,   and   to   achieve   economic,   ecological   and   social
objectives;
(n) Ocecz#-bczsec7 crcfz.vz.fz.es refer to activities that are undertaken in the ocean, e. g.
fisheries   and   aquaculture,   offshore   oil   and   gas,   mining,   ocean   energy,
desalination,   shipping  and  marine  transportation,  marine  tourism,  marine
construction;
(o) Ocecz#-re/czfec7 ac/i.w./j.es  refer  to  activities  that  use  products  from  the  ocean
(e.g.,  seafood  processing,  marine  biotechnology,  chemicals,  salt,  etc.)  and
produce products and services for the  ocean and ocean-based activities (e.g.,
ship  building  and  repair,  ports,  tourist  resorts,   communication,  maritime
insurance and law, maritime technical services, etc.);
(p)S2jbsz.s/e#ce   ¢sfejng    refers    to    fishing    for    personal    consumption    or
traditional/ceremonial purposes;


(q) Ocecz# //.ferczc); refers to an understanding of the ocean's influence on humans
and human influence on the ocean.
SHC.  4.  Scope  of Application.  -  For  puxposes  of this  Act,  the  Philippines  shall
exercise    sovereignty,    sovereign   rights    and   jurisdiction,    in   accordance    with
intemational  law,  as  appropriate,  in  internal  waters,  archipelagic  waters, territorial
sea,   contiguous   zone,   exclusive   economic   zone   and   continent   shelf,   herein
collectively  referred to  as  "Maritime Zones",  including its  seabed  and  subsoil,  and
any and all maritime features within the Maritime Zones now known or to be known
in the future, without prejudice to the power, authority and right granted exclusively
to the Bangsamoro Goverrment under Republic Act No.  11054, also known as the
"Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao,"  to
explore, develop, and utilize natural resources within its territorial jurisdiction.
CRAPTER 11
NATloNAL MARITlhm CouNCH.
SEC.  5.  National  Maritime  Council.  -  The National  Coast Watch Council,  created
under Executive Order No.  57.  Series of 2011, is hereby renamed and reconstituted
as  the  National  Maritime  Council,  herein  referred  to  as  the  "Council,"  and  its
functions expanded to include the formulation of an integrated strategy to promote
blue economy and ecosystem- based management of coastal and marine resources.
SEC. 6. Composition. -The Council is composed of the following:
Executive Secretary, as Chairperson;
Secretary of Socio-Economic Planning;
Secretary of Environment and Natural Resources;
Secretary of National Defense;
Secretary of Foreign Affairs;
Secretary of Justice;
Secretary of the Interior and Local Government:
Secretary of Agriculture ;
Secretary of Tourism;
Secretary of Transportation;
Secretary of Trade and Industry;
Secretary of Energy;
Secretary of Science and Technology; and
Secretary of Finance.
Department Secretaries may designate an Undersecretary, whose portfolio covers
matters directly or principally relating to the development or management of coastal
and marine  resources  and  ecoaystems,  if applicable.  They  shall  sit  in a permanent
capacity, and their acts shall be considered the acts of their principals.
SEC. 7. Secretariat.  - The Coastal Watch Council Secretariat, created under Section
4  of Executive  Order No.  57,  Series  of 2011,  is  hereby  renamed  as  the  National
Maritime Office and shall continue to provide technical and administrative support to
the Council.


SEC. 8. Support Agencies.  -Section 6 of Executive Order No.  57, Series of 2011  is
hereby  amended to include the following agencies to provide material or technical
support to the Council, as may be deemed necessary:
a)  Bangko Sentral ng Pilipinas;
b)  Board of Investments;
c)   Securities and Exchange Commission;
d)  Philippine Statistics Authority;
e)  National Mapping and Resources Information Authority;
I)   Environmental Management Bureau;
g)  Biodiversity Management Bureau-Coastal and Marine Division;
h)  Bureau of Agriculture and Fisheries Standards;
i)   Philippine Fisheries Development Authority;
j)   Philippine Council for Agriculture and Fisheries;
k)  Maritime Industry Authority;
I)   Philippine ports Authority;
in) Philippine Reclamation Authority;
n)  Philippine Council for Agriculture, Aquatic and Natural Resources Research
and Development;
o)  Philippine      Atmospheric,      Geophysical      and      Astronomical      Services
Administration (PAGASA);
p)  Department of Foreign Affairs-Maritime and Ocean Affairs Office;
q)  National Museum-Maritime and Underwater Cultural Heritage Division;
r)   University of the Philippines-Marine Science Institute; and
s)   Investment promotion agencies.
In order to ensure the efficient and effective discharge of its responsibilities, the
Council  may  create  working  groups,  and  call  upon  other  departments,  bureaus,
offices   and   instrunentalities   of  the   Government,   and   academic   and   research
institutions engaged in marine science and ocean-based or ocean-related activities to
participate in working groups, as it may deem necessary.
CRAPTER HI
pOLlcy FRAnmwoRK ON BLUE EcONOMy
SEC.  9.  Policy  Framework on Blue  Economy.  -  The  Council  shall,  within six (6)
months  from  the  effectivity  of this  Act,  formulate  a  Policy  Framework  on  Blue
Economy, herein referred to as the Policy Framework.  The Policy Framework shall
serve  as  the  basis  for  marine  spatial  planning,  determination  of  investments  to
enhance    maritime    domain    awareness,    and    enforcement    of   economic    and
environmental  regulations  within our maritime zones.  The  Policy  Framework  shall
be subject to mandatory review and modification every five (5) years.
SEC.  10.  Components  of the  Policy  Framework  on  Blue  Economy.  -  The  Policy
Framework shall include the following components:
a)  Review   of   all   existing   policies,   plans,   progralns,   projects,   rules   and
regulations on ocean-based and ocean-related activities;


b)  Adherence to international maritime laws;
c)  Analysis   of  current   and   emerging   trends   and   changes   in   demography,
consumption, trade, technology and climate that show the interaction between
the  economy  and  the  environment,  and  present  threats  and  pressures  on
coastal and marine environments;
d)  Environmental-economic   accounting   of   coastal   and   marine   assets   and
resources, and ecosystem services from coastal and marine environments;
e)  Priority  strategic  and  sustainable  ocean-based  and  ocean-related  economic
activities, which may include:
1.   Fisheries, including commercial fishing, but with preference to subsistence
fisheries, as mandated by Section 7, Art. XIII, of the Constitution;
2.   Aquaculture, mariculture and aquasilviculture;
3.   Marine and coastal tourism;
4.   Reclamation;
5.   Shipping, logistics and maritime transport;
6.   Ship-building and ship repair;
7.   Exploration, exploitation and extraction of oil and natural gas;
8.   Production of renewable energy from marine sources;
9.   Submarine mining or extraction of minerals and aggregates;
10. Installation of submarine cables and pipelines;
1 1 . Marine biotechnology and bioprospecting;
12, Desalination; and
13. Underwater cultural heritage and maritime archaeology.
(f) Guiding framework for integrated marine and coastal area management;
(g) Guiding framework for blue finance;
(h) Priority research and development agenda;
(i)        Promotion   of   ocean   literacy   and   social   responsibility   towards   the
protection of coastal and marine environments;
¢)  Enhancement  of  capability  of the  Armed  Forces  of  the  Philippines  and
civilian  agencies  to  enforce  laws,  rules  and  regulations  to  protect  our  marine
wealth;
(k)  Goals,  targets  and  indicators  for  growth,  resilience  and  sustainability  of
priority   strategic   and   sustainable   ocean-based   and   ocean-related   activities,
including its contribution to Gross Domestic Product and job creation;
CRAPTER IV
ADHERENCE To INTERNATloNAL MARITnm INSTRUMHNTS
SEC.   11.   International   Maritime  Instruments.   -   The   State   shall  adhere  to  the
provisions  of the   1982  United  Nations  Convention  on  the  Law  of the  Sea  and


relevant international conventions relating to maritime activities.  Towards this end,
the Council shall establish mechanisms for the full and effective implementation and
enforcement of the following international maritime instruments and their subsequent
amendments:
Fauna;
a)  Convention on the International Trade of Endangered Species of Flora and
b)  UNESCO Convention on the Protection of the Underwater Cultural Heritage;
c)  International Convention for the Safety of Life at Sea,1974, as amended, and
its Protocol of 1988 (SOLAS 74);
d)  International  Convention for the  Prevention of Pollution from  Ships and  its
Protocol of 1978 (MAPROL 73/78);
e)  Convention on the International Regulations for Preventing Collisions at Sea,
1972, as amended (COLREG 72);
I)   International  Convention  on  Load  Lines,  1966  and  its  Protocol  of  1988,  as
anended (LL 66);
g)  International   Convention   on   the   Tonnage   Measurement   of  Ships,   1969
(TONNAGE 69);
h)  Convention  for  the  Suppression  of  Unlawful  Acts  Against  the  Safety  of
Maritime Navigation,1988 (SUA) and its Protocol;
i)   International  Convention  on  Oil  Pollution  Preparedness,  Response  and  Co-
operation 1990 (OPRC  1990);
j)   International  Convention for the  Control  and  Management of Ships'  Ballast
Water and Sediments, 2004 (BWM 2004);
k)  Convention on the Prevention of Marine Pollution by dumping of Wastes and
Other Matter,1972, as amended, and its 1996 Protocol (LCP);
I)    Special Trade Passenger Ships Agreement,  1971  (STP 71);
in) Convention  on the  International  Mobile  Satellite  Organization,  as  amended
(IMSO 1976) and its Operating Agreement (INMARSAT);
n)  International convention on standards of Training,      Certification              and
Watchkeeping for Seafarers.  1978, As Amended (STCW 78);
o)  International Convention on the Control of Harmful Anti-Fouling Systems on
Ships, 2001  (AFS 2001);
p)  Protocol of 1992 to Amend the International Convention on Civil Liability for
Oil Pollution Damage,1969; and
q)  Protocol of 1992 to amend the International Convention on the Establishment
of an International Fund for Compensation for Oil Pollution Damage,1971.
SEC.  12.  Application.  -  Unless  otherwise  indicated,  the  international  conventions
enumerated in the preceding section shall apply to:
a)  All  ships,  whether  seagoing  or  coastwise.  which  are  registered  under  the
Philippine flag;
b)  All persons, partnerships, corporations, firms and other entities duly registered
or  licensed  in  the  Philippines  to  engage  in  ocean-based  or  ocean-related
enterprise, or those acting on their behalf;
c)  All  foreign  ships  that  are  within  the  waters,  ports,  harbors  and  offshore
terminals of the Philippines regardless of whether or not they are registered in,


or belong to, State Parties to the conventions sought to be implemented by this
Act.
C-TERV
ENvlRONMENTAL-n coNOMlc Ac couNTING
SEC.   13.   Environmental-Economic  Accounting.   -   The  Council   shall   undertake
environmental-economic accounting of maritime ecosystems and resources, based on
the United Nations System of Environmental-Economic Accounting. Members of the
Council  and  heads  of  support  agencies  shall  contribute  data  on  environmental-
economic accounts relating to their mandates.
SEC.  14.  Framework.  -  The  Philippine  Statistics  Authority  (PSA)  shall  develop  a
framework  for  the  collection,  compilation,  processing,  analysis,  publication  and
dissemination of environmental-economic accounts and its integration in the national
accounts:   Provided,   That  PSA   shall   integrate  the   collection  of  environmental-
economic   accounts   into   the   Community-Based   Monitoring   System   for   local
government units (LGUs); Provided, further, That the PSA shall coordinate with and
provide   technical   assistance   to   Members   of   the   Council,   support   agencies,
investment   promotion   agencies   and   LGUs   to   ensure   compliance   to   standard
environmental-economic      accounting      techniques,      methodologies,      concepts,
definitions  and   classifications  to   prevent  duplication  in  collection  of  statistical
information.
CHAPTHR VI
INTEGRATED MARINE AND COASTAL AREA MANAGEMENT
SHC.   15.   Integrated  Marine   and  Coastal  Area  Management  (IMCAM).   -   The
Integrated Marine and Coastal Area Management (IMCAM) shall be the framework
to  address  human  impacts  on  marine  and  coastal  biological  diversity,   and  for
promoting conservation and sustainable use of this biodiversity.
SHC. 16. Elements of the National IMCAM Framework. - The Council shall develop
and  implement  the  National  IMCAM  Framework  within  one  (1)  year  from  the
effectivity of this Act to provide direction, support and guidance to relevant member
and  support  agencies,  LGUs  and  other  stakeholders,  according  to  the  Elaborated
Programme  of Work on Marine  and  Coastal  Biological  Diversity  contained  in the
Annex  to  Decision  VI1/5  of the  Conference  of the  Parties  to  the  United  Nations
Environmental Programme Convention on Biological Diversity.
Accordingly,   the   National   IMCAM   Framework   shall   consider   the   following
elements:
a)  Building capacity of stakeholders,  in both national and  local levels, to apply
relevant    policy    instruments    to    address    legal    issues,    institutionalize
participatory  processes,  and  develop  strategies  to  promote  multidisciplinary
and   multisectoral   ecosystem-based   management   of   coastal   and   marine
environments;


b)  Direct  action  to  protect  coastal  and  marine  environments  from  negative
impacts, such as:
1.   Identification, protection, prevention of alteration and destruction, and
restoration of coastal and marine habitats, particularly areas important
for reproduction, inter alia, coral reef systems:
2.   Prevention, reduction or control of marine pollution;
3.   Protection   of   coastal   and   marine   environments   from   land-based
sources, including proper coastal land use and watershed management;
4.   Establishment of closed fishing areas:
5.   Reduce by-catch.
c)  Establishment  of mechanisms  and  guidelines  for  research,  monitoring  and
assessment   of  coastal   and   marine   ecosystems   and   resources,   including
indicators to measure natural and human-induced impacts.
CRAPTER VH
PROTECTION AND CONSERVATION 0F COASTAL AND MARINE
RESOURCES
SEC.  17.  Protection  of Endangered  Species.  -  The  Council  shall  spearhead  the
conservation, protection and rehabilitation of rare, threatened and endangered aquatic
species  as  it  may  determine,  including  their  habitats.  It  shall  recommend  to  the
President and Congress the designation of coastal and marine areas as protected areas
under  the  Expanded  National  Integrated  Protected  Areas   System  or  under  the
Fisheries  Code,  as  amended,  and  in  compliance  with  the  relevant  provisions  of
international  treaties  and  agreements  such  as,  the  Convention  on the  International
Trade   in   Endangered   Species   of  Wild   Flora   and   Fauna,   the   United   Nations
Convention on the Law of the Sea, and Convention on Biological Diversity.
SEC.  18. Policy Coordination.  - The Council shall hamionize rules and regulations
of all relevant agencies responsible for the implementation and enforeement of laws
to prevent
and eliminate illegal fishing such as Republic Act (RA) No.  8550, also known as the
"Philippine Fisheries Code of 1998," as amended by RA 10654.
CRAPTER VIII
DEVELopn4ENT PLANNING
SEC.  19.  Maritime  Spatial  Planning.  -  The  Council  shall  undertake  a nationwide
maritime spatial planning to identify the spatial and temporal distribution of priority
activities and uses and the interactions thereof in maritime zones, in order to reduce
conflict among uses, facilitate complementary uses, mitigate environmental impacts,
and preserve ecosystem services.
SEC.  20.  Industry  Development  Plans.  -  The  Council,  through  working  groups
created for the purpose,  shall prepare five-year and ten-year development plans for
each  priority  strategic  and  sustainable  ocean-based  or  ocean-related  industry,  in
accordance with the Policy Framework.


SEC.  21.  Integration  with  Area  and  National  Development  Plans.  -  The  National
Economic and Development Authority  shall integrate the maritime spatial plan and
industry  development  plans  into  the  Philippine  Development  Plan,  the  National
Priority Plan, the National Physical Framework Plan, and Area Spatial Development
Framework.
SEC.   22.   Inclusion  in   Strategic  Investment  Priority   Plan.   -   The   Council   shall
recommend to the Board of Investments the inclusion of identified priority strategic
ocean- based and ocean-related activities in the Strategic Investment Priority Plan.
SEC.  23.  Blue  Economic  Zones.  -  Investment promotion agencies  shall  encourage
the establishment of blue economic zones and the transformation of existing special
economic zones (SEZs) into the  same, where locator enterprises engaged in ocean-
based  or ocean-related  activities  shall  enjoy  the  privileges,  benefits,  advantages  or
exemptions  granted  to  economic  zones  and  freeports  in  accordance  with  their
respective special laws.
In addition, the incentives provided for under the following laws may be granted to
blue
SEZs:
a)  RA 9003, or the '.Ecological Solid Waste Management Act of 2000;"
b)  RA 9275, or the "Philippine Clean Water Act of 2004;"
c)  RA 9513, or the "Renewable Energy Act of 2008;" and
d)  RA 10771,or the "Philippine Green Jobs Act of 2016."
Blue  SEZs  may  also  qualify  for  financing  provided  for  under  RA  11293,  or  the
"Philippine Innovation Act. "
CRAPTER IX
BLUE FINANCH
SEC.  24.  Role  of the  Bangko  Sentral  ng  Pilipinas  (BSP).  -  In  the  exercise  of its
regulatory powers over financial institutions, the BSP shall mandate banks and quasi-
banks  to   adopt  the  United  Nations  Environment  Programme   Sustainable  Blue
Economy  Finance  Principles  as  a  foundation  of  corporate  governance  and  risk
management.
SHC.  25.  Role  of Securities  and  Exchange  Commission  (SEC).  -  The  SEC  shall
encourage the issuance of blue bonds where proceeds will be exclusively applied to
finance  or  refinance,  in  part  or  in  full,  strategic  and  sustainable  ocean-based  or
ocean-related  activities,  in  accordance  with  ASEAN  Green  Bonds  Standards  and
Green Bonds Principles, as developed and may be revised from time to time by the
ASEAN Capital  Markets  Forum  and the International  Capital Market Association,
respectively.
SEC.  26.  Role  of  Government  Financial  Institutions.   -  The  Land  Bank  of  the
Philippines and the Development Bank of the Philippines shall allocate five percent
(5%) of its regular loan portfolio for credit to strategic and sustainable ocean-based
or ocean-related enteaprises.


CRAPTERX
MARINE SCIENCE AND OCEAN LITERACY
SEC.  27.  Marine  Scientific  Research.  -  The  State  recognizes  marine  science  as  a
foundation of maritime governance, insofar as rules governing the use of coastal and
marine resources must be based on the sound scientific understanding of the marine
environment.  In accordance with UNCLOS, the Philippines has the exclusive rights
to regulate, authorize and conduct marine scientific research in our internal waters,
archipelagic waters and territorial sea; whereas, the Philippines has rights to regulate,
authorize  and  conduct  maritime  research  in  our  exclusive  economic  zone  and
continental  shelf:  Provided,  That  the  marine  scientific  research  activities  shall  not
unjustifiably  interfere with other legitimate uses of the  sea and  shall not constitute
the legal basis for any claim to any part of the marine environment or its resources.
Marine    scientific    research    by    foreign    states    and    competent    international
organizations may only be conducted with the express consent of and the conditions
set forth by the Council, in i6.cordance with the UNCLOS.
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SEC. 28. Ocean Literacy Framework.  - The Department of Education, Commission
on Higher Education,  Technical  Education  and  Skills  Development Authority  and
other   government   agencies   implementing   sector-specific   literacy   programs,   in
consultation  with  relevant  Members  of  the  Council   or  support  agencies,   shall
integrate  into  the  curricula  of  K-  12,  the  Alternative  Leaming  System,  general
education   programs   of  higher   education   institutions,   technical   and   vocational
education and training, and other community-based training programs, the essential
principles  and  fundamental  concepts  of ocean  sciences  to  develop  the  following
competencies:
a)  Understanding the importance of the ocean to humankind;
b)  Communicating about the ocean in a meaningful way; and,
c)  Making  informed  and  responsible   decisions  regarding  the  ocean  and  its
resources.
CRAPTER XI
FREEDOM 0F NAVIGATION
SEC.  29.  Archipelagic  Sea Lanes.  -  The  Council  shall  designate  sea lanes  and  air
routes there above,  suitable  for the  continuous  and expeditious passage  of foreign
ships and aircrafts through or over the archipelagic waters and the adjacent territorial
sea, and shall, where necessary as regards to the safety of navigation, require foreign
ships exercising the right of innocent passage to use such lanes and traffic separation
schemes in accordance with the UNCLOS.
CRAPTER XH
ROLE 0F LOCAL GOVERNRENTS
SEC. 30. Role of Local Government Units. - Cities and municipalities shall continue
to exercise jurisdiction over municipal waters, pursuant to RA 7160, also known as
the  "Local  Government  Code  of  1991,"  as  amended,  and  RA  8550,  as  amended.


Consistent  with  this  mandate,  local  goverrment  units  shall  act  as  the  frontline
agencies  in  the  formulation,  planning  and  implementation  of  IMCAM  in  their
respective jurisdictions.  LGUs shall integrate the National Maritime  Spatial Plan in
their Comprehensive Development and Annual Investment Plans.
SEC.  31.Inter-LGU Cooperation.  -Consistent with the provisions of RA 7160,  as
amended,  LOUs  may  group  themselves,  consolidate  or  coordinate  their  efforts,
services, and resources for the accomplishment of the objectives of this Act.
CRAPTER XIII
FINAL PROVISIONS
SHC. 32. Congressional Oversight.  - For the effective implementation of this Act, a
Congressional  Oversight Committee  is  created  to  be  known  as the  Blue  Economy
Oversight Committee.  The Blue Economy Oversight Committee shall be composed
of five  (5)  Senators  and  five  (5)  Representatives  to  be  appointed  by  the  Senate
President  and  the   Speaker  of  the  House  of  Representatives,   respectively.   The
Minority  shall be entitled to pro rata representation.  The Blue Economy  Oversight
Committee shall be jointly chaired by the Chairperson of the Senate Committee on
Economic  Affairs  and  the  Challperson  of  the  House  Committee  on  Economic
Affairs.
SEC.    33.    Appropriations.    -    The    amount    of   One    hundred    million    pesos
(Ploo,000,000.00)  as  initial  funding  for  the  Council  to  be  charged  against  the
unexpended Contingency Fund of the Office of the President is hereby appropriated.
Thereafter, the amount needed for the continued implementation of this Act shall be
included in the annual General Appropriations Act.
SEC.  34.   Implementing  Rules  and  Regulations.   -  The   Council   shall   issue  the
implementing rules and regulations within sixty (60) days from the approval of this
Act: Provided however, That the failure to issue rules and regulations shall not in any
marmer affect the executory nature of the provisions of this Act.
SEC.  35.  Separability  Clause.  -  If  any  provision  of  this  Act  is  held  invalid  or
unconstitutional, the remaining provisions not affected shall remain in full force and
effect.
SEC.  36.  Repealing  Clause.  -  All  laws,  decrees,  executive  orders,  and  rules  and
regulations contrary to or inconsistent with the provisions of this Act are repealed or
modified accordingly.
SEC. 37. Effectivity. -This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.
Approved,