Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS.
FIRST REGULAR SESSION

1434

House Bill No.

Introduced by Representative Luis Jose Angel N. Campos, Jr.

EXPLANATORY NOTE

The Environmental Assessment System bill seeks to address the present or perceived legal
and implementation limitations and weaknesses in the 1978 Presidential Decree 1586 or the
Philippine Environmental Impact Statement (EIS) System, a general law which is being
implemented through mere administrative orders in encroachment on the powers of the
legislative branch. The bill intends to resolve confusions and disagreements among project
Proponents, agencies, non-government organizations and other stakeholders resulting from
differences in the interpretation of the said law by the implementing agency.

Generally, the proposed legislation adopts an Environmental Assessment System which is
composed of

(a) Strategic Environmental Assessment (SEA) for policies, plans and programs; and
(b) Environmental Impact Assessment (EIA) for projects.

Under Strategic Environmental Assessment (SEA), environmental concerns shall already be
addressed in the country’s long- and short-term policies, plans and programs as early as the
conceptualization stage thereof in order to ensure that the Philippines’ development will be
sustainable.

‘The proposed measure will retain the EIS System under P.D. No. 1586 but will streamline
and rationalize the system. Environmental Impact Assessment will still be required for
specific projects, particularly those that are considered critical projects (CPs) or projects
which have potential to cause significant adverse impact on the environment.

Those considered as CPs are:
(a) heavy industries;
(b) major manufacturing industries;
(c) major resource extractive industries;
(d) major infrastructure projects; and
(c) other similar projects.


‘The bill proposes that micro-, small- and medium-scale projects be governed by local
governments, which will be required to integrate environmental safeguards in their local
permitting system and/or complementary environmental assessment polic

‘The measure also provides for programmatic EIA for a cluster of projects co-located in an
area such as industrial estates, export processing zones, small scale mining, livestock,
aquaculture and mariculture projects, or series of projects subdivided into several phases or
stages, or projects consisting of several components.

With the Dutertenomics’ Build, Build, Build agenda, the Philippines shall experience
infrastructure boom with breathtaking $180 billion infrastructure spending bonanza. We will
see policies, plans, programs, and projects for airports, railways, bus rapid transits, roads and
bridges, seaports, energy facilities, irrigation systems flood control facilities, among other
things. These notwithstanding, the Philippines must sce to it that present and future
environmental goals are not sacrificed by the said undertakings. This proposed measure will
appropriately address such concern.

In view of the foregoing, the passage of thi

bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No, 1434

Introduced by Representative Luis Jose Angel N. Campos, Jr.

AN ACT
TO ESTABLISH THE PHILIPPINE ENVIRONMENTAL ASSESSMENT SYSTEM,
AND FOR OTHER PURPOSES

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

PRELIMINARY TITLE

Chapter I
Basic Policies

Section 1. Short Title. This Act shall be known and referred to as the “Philippine
Environmental Assessment System Act of 2019”.

Section 2. Declaration of Policy. The State shall adhere to the principles of
sustainable development. To this end, balanced consideration of environmental protection,
human health, and socio-economic developments shall be ensured by government through the
assessment of significant environmental impacts of policies, plans, programs and projects and
the prescription of appropriate protection and control measures. The implementation of this
State policy shall be guided by the following principles:

a) A proactive approach to integrating environmental considerations into strategic
decision making, consistent with sustainable development principles;

b) A systems-oriented and integrated approach in the analysis and solution to
environmental concems vis-a-vis development programs;

©) Conservation of biological diversity and the sustainable use of its components in
all phases of development activity, specially in the context of climate change and disaster risk
reduction;

4) Promotion of transparency and public participation in environmental assessment

system;


) Adoption of systematic decentralization of environmental assessment and
institutionalization of local environmental expertise;

f) Strengthening environmental monitoring and evaluation mechanisms; and

2) Establishment of mechanisms to sustain the environmental assessment system.

Chapter 2
Definition of Terms

Section 3. Definition of Terms. For purposes of this Act, the following terms shall be
defined as stated below:

a) “Agency” shall refer to the relevant government department, bureau or office, at
all levels, including government-owned and controlled corporations, with mandate over the
preparation, evaluation, approval, implementation, or monitoring of a policy, plan, program
or project.

b)

©) “Co-located Projects” shall refer to projects, or series of projects or a project
subdivided into several phases or stages, and located in a contiguous area;

4) “Critical Project” shall refer to a project or activity that has the potential for

“Bureau” shall refer to the Environmental Management Bureau;

significant adverse environmental impact, as determined by the Bureau in accordance with
the provisions of this Act.

¢) “Cumulative Effects” shall refer to the effects on the environment which result
from the incremental effect of an activity or a set of activities in combination with the effects
of other activities in the area, past and present, regardless of the person or agency that
undertakes such other activities.

f) “Department” shall refer to the Department of Environment and Natural
Resources;

&) “Environmental Assessment” shall refer to a process of systematic analysis,
evaluation and management of the potential environmental effects of a policy, plan, program
or project before a decision on the said policy, plan, program or project is made. The term
includes both Strategic Environmental Assessment (SEA) and Environmental Impact
Assessment (EIA);

h) “Environmental Impact Assessment” shall refer to the process of predicting and
evaluating the likely impacts of a project (including cumulative impacts) on the environment
during construction, commissioning, operation, and abandonment. It also includes designing
appropriate preventive, mitigating, and enhancement measures addressing these
consequences to protect the environment;


i) “EIA Report” shall refer to the document of studies on the environmental
impacts of a project, including the discussions on direct and indirect consequences upon
ecological and environmental integrity. The EIA Report may vary from project to project but
shall contain in every case all relevant information and details about the Proposed project,
including the appropriate mitigating and enhancement measures to address the identified
environmental impacts.

i) “Environmental Impact” shall refer to any change that the policy, plan, program
or project may cause in the environment, including any effect of any such change on health
and socio-economic conditions.

k) “Environmental Management Plan” shall refer to the details of the preventive,
mitigating, and enhancement measures of a proposed project, including monitoring and
evaluation thereof, and shall form part of the EIA Report.

1) “Policy, Plan or Program” shall refer to new or modified framework or courses
of action, strategies, guidelines or measures proposed by a concemed agency or local
government unit (LGU) to define or implement its mandate under relevant laws. The term
includes those financed and/or co-financed by international organizations and proposed to the
head of an agency or LGU.

m) “Proponent” shall refer to any person seeking to implement a relevant policy,
plan, program or project. This includes government agencies, government-owned and
controlled corporations, LGUs, and private entities.

n) “Strategic Environmental Assessment” shall refer to the management/planning
tool for a systematic evaluation of the environmental consequences of a proposed policy, plan
or program in order to ensure that they are fully considered and appropriately addressed at the
earliest stage of decision-making

TITLEL
ENVIRONMENTAL ASSESSMENT SYSTEM
Chapter 1
General Provisions

Section 4. Environmental Assessment System. The Environmental Assessment
System (EAS) is hereby established which shall cover Strategic Environmental Assessment
(SEA) and Environmental Impact Assessment (EIA). The EAS shall be implemented for
purposes of identifying, analyzing, evaluating, and managing the direct and indirect impacts
of a policy, plan, program or project on the environment, health, and socio-economic issues,
and ensuring that these impacts are addressed by appropriate environmental protection and


control measures. It shall help identify the most practicable alternatives for achieving
positive outcomes and minimizing potentially adverse effects of policies, plans, programs,
and projects.

Section 5. Coverage of the Environmental Assessment System (EAS). Any policy,
plan, program or project which has the potential for significant adverse impact on the
environment shall be covered by the EAS.

Chapter 2
‘Strategic Environmental Assessment

Section 6. Applicability of the SEA. The SEA shall be required for a proposed
policy, plan or program when all of the following conditions exist:

a) The proposal relates, but not limited, to agriculture, forestry, fisheries, energy,
health, resource extraction, infrastructure, transport, waste management, water management,
tourism, coastal zone management, national, regional, provincial and municipal/city
development planning or land use; and

b) Implementation of the proposal may result in significant adverse environmental
impact, including health and socio-economic impact.

Provided, that, SEA shall not be required for policy, plan or program for proposals involving
national security, as declared by the President of the Philippines. Provided, further, that,
within five (5) years from the date of effectivity of this Act, SEA shall apply to the following:

a) National development plans, pol

ies, and programs, such as the Philippine
Development Plan;

b) Sectoral plans, policies, and programs, such as those relating to agriculture
livestock, environment and natural resources, energy, infrastructure and industries;

©) Sub-national development plans and programs, such as regional, provincial and
local development and land use plans, including those formulated by the Mindanao
Development Authority, Palawan Council for Sustainable Development, and other similar
bodies;

d) Policies involving biosafety, genetically modified organism (GMO), and
bioprospecting; and

€) _ Indigenous peoples’ development plans.

Section 7. Undertaking SEA. The proponent shall conduct the SEA as an integral
part of the formulation of the policy, plan or program for the purpose of identifying the most

practicable alternatives for achieving positive outcomes and minimizing potentially adverse
effects of the policy, plan or program. SEA may be carried out corresponding to the stages of


policy, plan or program formulation and may involve sequential assessments of various
components of the policy, plan or program.

‘The SEA to be undertaken shall specify, but not be limited to, the following
information:

a) Description of the policy, program, or plan in summary, and process of
organization to implement SEA;

b) Scope of the SEA study and the main environmental issues related to the policy,
program, or plan, specifying environmental impacts and cumulative effects to be considered,
including past environmental issues and relevant trends in the state of the environment;

c) Assessment of the policy, program, or plan vis a vis environmental and
sustainable development considerations; and

d) Recommended options to prevent or mitigate any significant adverse
environmental impacts resulting from the implementation of the policy, plan, or program,
including the focus of any subsequent EIAs, and measures for monitoring environmental
aspects of its implementation.

Section 8 Inter-agency Steering Committee on SEA. There is hereby created an
Inter-agency Steering Committee on SEA (IASCS) that shall oversee the undertaking of SEA
pursuant to this Act. The IASCS shall be composed of the following:

a) — Secretary of the Department of Environment and Natural Resources;

b) — Secretary of the Department of Interior and Local Government;

c) Secretary of Socio-Economic Planning:

d) Secretary of the Department of Science and Technology;

e) — Secretary of the Department of Agriculture;

f) Secretary of the Department of Budget and Management;

2) Secretary of the Department of Public Works and Highways;

h) Secretary of the Department of Energy;

i) Secretary of the Department of Transportation;

i) Secretary of the Department of Health;

k) — Secretary of the Department of Tourism

1) Chairman of the Housing and Land Use Regulatory Board;

m) Chairman of the National Commission on Indigenous Peoples;

n) Secretary of the Department of Trade of Industry;

©) One representative from the Local Government Unit


p) One representative from the environmental NGOs;

q) One representative from the academe; and

1) One representative from the business sector.

‘The representatives of the environmental NGOs and business sector shall be
appointed by the President from a list of nominees submitted by their respective sectors. They
shall serve for a term of six (6) years without reappointment, unless their representation is
withdrawn and/or replaced by the concemed sector, in which case, the new appointee shall
serve only for the unexpired term of the predecessor.

Only the ex officio members of the IASCS shall appoint a qualified permanent
representative who shall hold a rank of no less than an Undersecretary, or its equivalent.

Section 9. Executive Committee and Secretariat. The \ASCS shall be headed by an
Executive Committee, composed of the Secretaries of the Department of Environment and
Natural Resources, Department of Interior and Local Government, and the Social Planning
Office, who shall elect among themselves the chairman of the IASCS. The National
Economic and Development Authority (NEDA) shall serve as the secretariat of the IASCS.

Section 10. Powers and Functions of the IASCS. The 1ASCS shall have the
following powers and functions:

a) — Ensure the mainstreaming of SEA into policies, plans and programs;

b) Formulate implementing rules and regulations on SEA pursuant to this Act,
including the provisions for the progressive implementation of SEA in accordance with
Section 6 of this Act;

c) _ Exercise policy coordination to ensure the attainment of the goals and objectives
set in this Act;

d) Recommend legislation, policies, strategies, programs on and appropriations for
‘SEA and other related activities;

€) Create an enabling environment that shall promote broader multi-stakeholder
participation;

f) Formulate and update guidelines for determining and facilitating the provision
of technical assistance for their implementation and monitoring;

g) Ensure compliance of all concemed agencies with this Act;

h) Facilitate capacity building for SEA implementation and monitoring; and

i) Oversee the dissemination of information on SEA.



Chapter 2
Environmental Impact Assessment (EIA)
For Specific Projects

Section 11. Applicability of EIA. Critical projects, as determined by the Bureau in
accordance with this Act, shall undertake an EIA for specific projects. These critical projects
are presumed to have the potential for significant adverse impact on the environment. For
purposes of determining critical projects, the Bureau shall consider the nature of the project
and its potential to cause significant adverse environmental impacts. Critical projects shall
include, but not limited to, heavy industries, major manufacturing industries, major resource-
industries, major infrastructure projects, and other similar projects.

Micro-, small-, and medium-scale projects and other similar activities shall be
governed by the concerned LGUs, which shall integrate environmental safeguards in their

extractit

local permitting system and/or complementary environmental assessment policies.

Critical projects, the impact of which is specifically addressed in a SEA, may be
required by the Bureau to undertake an appropriate environmental assessment study.

Existing projects, which are deemed critical under this Act but operating without an
Environmental Compliance Certificate (ECC) required under Sec. 4 of PD 1586, shall be
given three (3) years from the date of the effectivity of this Act within which to comply with
the provisions of this law.

Section 12. Review of EIA. The EIA Report shall be reviewed by a multi-
disciplinary team of independent experts convened by the Bureau for that purpose. The team
shall_make a report of its findings and recommendation on the issuance or non-issuance of
the Certificate of Proponent’s Environmental Commitment (CPEC). The cost of such review
shall be financed by the proponent through a fund manager, whether government or private.

Section 13. Decision on the EIA. After a review of the EIA Report and the
recommendations of the EIA Review Team, the Bureau may issue a Certificate of
Proponent’s Environmental Commitment (CPEC) certifying that the proposed project has
integrated environmental considerations into its overall project design and management, that
the assessment is technically sound at the feasibility study stage, and that the proposed
preventive, mitigating, and enhancement measures are appropriate. The CPEC shall also
certify that the proponent has demonstrated its commitment to implement the approved
Environmental Management Plan (EMP) for its proposed project, as planned, and the
corresponding Monitoring and Evaluation.


The CPEC shall be limited to the results of the assessment of the environmental
impacts of the proposed project. It shall not, in any manner, exempt the proponent from
securing other government permits and clearance required by other laws, nor shall it be
construed as resolving issues within the mandate of other government agencies, such as those
relating to land ownership and possession rights.

All concerned national government agencies and local government units shall
consider the CPEC and relevant EIA documents in their decision-making process.

Section 14. Environmental Safeguards for non-Critical Projects. Proponents of
Projects that are not covered pursuant to the preceding sections may be required by the
Bureau to implement environmental safeguards. The Bureau shall establish an evaluation
system therefor.

Section 15. EIA for Co-located Projects. The Department shall require
programmatic EIA for projects or series of projects subdivided into several phases or stages,
or consisting of several components, or a cluster of projects co-located in an area, such as, but
not limited to, industrial estates, export processing zones, small-scale mining, livestock,
aquaculture, and mariculture projects.

‘The EIA requirements and conditions for co-located projects under the EAS shall be
guided by an assessment of the cumulative impacts and carrying capacity as may be
determined from ecological profiles of the area.

The CPEC under this provision shall be issued by the Bureau.

Section 16. Financial Guarantee Mechanism. As part of the CPEC requirements, the
Bureau may require project proponents to put up a financial guarantee mechanism to respond
to the need for clean-up or rehabilitation of areas that may be damaged, whether directly or
indirectly, or through occurrences, anthropogenic or otherwise, by a project, during and after
its operation.

Provisions for financial liability shall ensure just and timely compensation for any
adverse effects which project implementation may directly or indirectly cause on the
environment or the community.

‘The instruments acceptable for compliance with this provision are trust funds,
environmental insurance, cash funds, financial test mechanism, self-insurance and other
guarantee instruments. The choice of guarantee mechanisms, or of combinations thereof,
shall depend primarily on: a) the probability and magnitude of the risks involved, as culled
from new and existing information and determined through environmental and health risk
assessment, and b) the financial capability of the proponent; Provided, that such proponent


shall show proof of compliance with the requirement for contingent liability by furnishing the
Department with evidence of availment of such mechanism.

Section 17. Accreditation of Preparers and Reviewers. The Bureau shall establish a
system of accreditation for preparers and reviewers of EIA, which shall take into
consideration their competence, expertise, track record, integrity and independence. The
Bureau may delegate the accreditation process to a third party, government or private.

No employee of the Department or Bureau shall, in any manner whatsoever,
or indirectly, participate in the preparation of the EIA.

Section 18. Non-Liability to the Authenticity of EIA Documents. The documents
that may be required by the Bureau for the conduct of an EIA shall be used solely to
determine the scope and potential impacts of proposed projects on the environment. The
Bureau shall not be liable to any allegations or conclusions of fraud, falsification, or

irectly

misrepresentation attending the submitted documents. Any issues or disputes that may arise
from such documents shall be resolved in appropriate forums, courts or tribunals.

Section 19. Consultation and Public Participation in the EIA. All Proponents of
critical projects shall, at the earliest stage of the EIA process, inform and consult the
concerned local government units and communities that will be affected by the proposed
Project to ensure that environmentally relevant concerns are taken into consideration in the
EIA study and in the formulation of the EMP.

It shall be done through public hearing, whenever appropriate, which is publicly
announced and where all valid comments are heard and considered.

Section 20. Multi-partite Monitoring Team and Environmental Monitoring Fund.
Multi-partite monitoring teams (MMT) shall be organized to encourage public participation,
Promote greater stakeholder vigilance, and provide appropriate check and balance
mechanisms in the monitoring of project implementation.

The MMTs shall be composed of representatives of the relevant national agencies,
local government units, non-governmental organizations, and other stakeholders in the
affected communities. The government representatives shall be selected by the Bureau based
‘on the relevance of their mandates, while those from non-governmental organizations and
affected communities shall be selected from among themselves in a process facilitated by the
concerned LGU and certified by the Bureau.

MMTs can be project-based or clustered by province/municipality or by sector. Such
clustering shall be accomplished upon the recommendation of any of the members of the
MMTs comprising the cluster and shall be convened with the assistance of the Bureau and


the concerned LGU. Cluster members shall agree on a manual of operations, a fund manager,
and scheme for shared monitoring.

The proponent shall establish an Environmental Monitoring Fund (EMF) to support
the activities of the MMT. The Bureau shall promulgate the rules for the administration and
management of the EMF: Provided, that, in no case shall such fund be used other than for the
purpose for which it was established.

TITLE
MISCELLANEOUS PROVISIONS
Chapter 1
Fines and Penalties

Seetion 21. Sanctions for Violations. Any critical project which shall operate without
the required CPEC shall face closure, suspension of development or construction, or
cessation of operations until such time that proper environmental safeguards are put in place
and the necessary CPEC has been issued; Provided, that, the project proponent shall be fined
an amount not less than One Hundred Fifty Thousand Pesos (Php100,000.00) but not more
than Twenty Million Pesos (Php20,000,000.00) depending on the magnitude of the
environmental risks and upon the final decision of the Bureau. Provided, further, that the
chief operating officer or executive officer of the proponent firm shall be held criminally
liable and shall be imprisoned for a period not less than two (2) years but not more than ten
(10) years, at the discretion of the Court.

Any project proponent found in violation of the EMP shall be imposed a fine in the
amount of not less than Fifty Thousand Pesos (Php 50,000.00) for every violation, depending
upon the type and impact of the violation, but not more than Ten Million Pesos (Php
10,000,000.00) per violation, plus cost of damages, at the discretion of the Bureau, Provided,
that the Bureau may order the closure, suspension of development or construction, or
cessations of operations if the violation of the EMP is continued.

Chapter 2
Institutional Arrangement

Section 22. Agencies Responsible in the Implementation of the Act. Unless otherwise
Provided by this Act, the Department shall serve as the primary agency responsible for
the implementation of the EAS. It may secure the assistance of environmental units of
other government agencies, academic and research institutions, and environment
professionals in undertaking its responsibilities under this Act.

For this purpose, an environmental unit shall be established and/or strengthened in each
concemed government agency. Furthermore, it shall be the responsibility of all concerned


government agencies to share information or data necessary to effectively evaluate
reports required pursuant to this Act.

Concerned government agencies shall establish appropriate permanent organizational
structures and systems to address the requirements of the EAS.

Section 23. Establishment of an Environmental Assessment System
order to effectively implement the provisions of this Act, an Environmental Assessment
System (EAS) Division is hereby established within the Bureau.

Section 24. Decentralization and Devolution of Functions. The Department shall,
within one (1) year from the effectivity of this Act, develop guidelines for the
decentralization of functions of the Bureau under this Act to the Regional Offices.

The Department, in coordination with the Department of Interior and Local
Government (DILG), shall, within two (2) years from the effectivity of this Act, provide
technical resources and leadership to assist LGUs and entities in acquiring capacity and
expertise for rational and effective devolution of functions under the EAS. The devolution of
functions shall be made after the concerned LGUs and entities have been assessed to be
technically capable of such functions.

Section 25. Local Capacity-Building in Environmental Assessment System. The
Department, through the Bureau, shall, in coordination with the DILG, lead the development
and implementation of a national capacity building program in environmental assessment. To
ensure the rational devolution of functions mandated in Section 24 hereof, the program shall
be operational within two (2) years from the effectivity of this Act.

‘The national program for capacity building shall identify target entities as well as
functions for devolution and prepare the target entities for the local implementation of the
EAS or its components in accordance with the objectives of this Act.

Section 26. Knowledge Management System. The Bureau shall establish a database
management system for purposes of gathering, keeping, disseminating and updating all
information relative to the implementation of the EAS. As part of the database management
system, the Bureau shall create a public registry of all CPECs issued.

Section 27. Public Disclosure. All documents generated as part of the EAS shall be
accessible to the public upon request made during office hours, except those information
deemed protected under Rep. Act No. 8293, otherwise known as the Intellectual Property
Code of the Philippines: Provided that, the executive summary of the SEA, EIA, EMP, and
CPEC shall likewise be disclosed by the Bureau and proponents to the public through the

internet.


Chapter 3
Actions

Section 28. Administrative Action. Without prejudice to the right of any affected
person to file an administrative action, the Department shall, on its own instance or upon
verified complaint by any person, institute administrative proceedings against any person
who violates the provisions of this Act and the orders, rules and regulations promulgated
pursuant thereto.

Section 29. Citizen Suits. For purposes of enforcing the provisions of this Act or its
implementing rules and regulations, any citizen may file an appropriate civil or criminal
action in the proper courts against:

a) Any person who violates or fails to comply with the provisions of this Act, its
implementing rules and regulations, or orders issued pursuant thereto; or

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

©) 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 citizen suit can be filed until after a thirty (30)-day notice 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.

Within thirty (30) days, the court shall make a determination if the complaint herein is
malicious and/or baseless, and shall accordingly dismiss the action and award attomey’s fees
and damages.

Section 30. Independence of Action. The filing of an administrative suit against such
persowventity does not preclude the right of any other person to file any criminal or civil
action. Such civil action shall proceed independently.


Section 31. 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 28 of this Act, or against any person, institution or government agency
that implements this Act, 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.

Chapter 4
Establishment of an EAS Management Fund

Section 32. Environmental Revolving Fund. The Environmental Revolving Fund (ERF)
created under Presidential Decree No.1586 shall remain to be operational. It shall be used
primarily for defraying administrative expenses, equipment purchases or leases and other
program costs directly incurred in the review, assessment and monitoring of the EAS. The
ERF may be sourced from donations, endowments and grants in the form of
contributions. Such endowments shall be exempt from income or gift taxes and all other
taxes, charges or fees imposed by the government or any political subdivision,
instrumentality or agency. It shall also include funds to be provided by proponents for the
review of specific projects. All income likewise generated from fees, fines and penalties
directly related to the implementation of the EAS shall accrue to the ERF and may be

utilized directly by the Department for the above purposes.

All fund transactions shall, however, be subject to the usual auditing procedures in
accordance with existing laws

Section 33. Appropriations. An amount of One hundred million pesos
(P100,000,000.00) shall be appropriated for the initial implementation of this Act.

Section 34. Transitory Provision. Non-Highly Urbanized Cities, 3" 4,5" and 6"
class municipalities shall be given a five (5)-year grace period within which to comply with
the provisions of this Act on SEA.

Section 35. Implementing Rules and Regulations. Unless otherwise provided in this
Act, the Department, in coordination with other concerned agencies, shall promulgate the
implementing rules and regulations of this Act, within one (1) year after its effectivity.



‘The Department and the IASCS, in coordination with other concemed government
agencies, shall undertake such review and updating of the implementing guidelines of the
EAS every two (2) years thereafter.

Section 36. Joint Congressional Oversight Committee. ‘There is hereby created a
Joint Congressional Oversight Committee to monitor the implementation of the provisions of
this Act. The 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 Oversight Committee shall be co-chaired by the Chairpersons of the Senate
Committee on Environment and House Committee on Ecology.

Chapter Five
1 Provisions

Section 37. Separability Clause. Should any provision herein be subsequently
declared unconstitutional, the same shall not affect the validity or legality of the other
provisions of this Act.

Section 38. Repealing Clause. Presidential Decree No. 1586, except Section 10 thereof,
Presidential Proclamation No. 2146, Executive Order No. 803, and Office of the President
Administrative Order No. 42, series of 2002 are hereby repealed. All laws, orders, rules
and regulations or any part thereof which are inconsistent with the provisions of this Act
are hereby amended or modified accordingly.

Section 39. Date of Effectivity. This Act shall take effect fifteen (15) days after its
publication in the official Gazette or in two (2) newspapers of general circulation.

Approved,