7 JUN 30 P 4 X-7 
FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill mandates the planting of one billion trees all over the Philippines to address 
the depletion of the forests in our country. 
The rate of deforestation in the Philippines has reached an alarming rate of 2.1 
percent between the years 2000 to 2005, the highest in the South East Asia region. Some 887 
square kilometers of forest area are denuded annually. Of the total land area of the 
Philippines of 30 million hectares, the forest area has decreased from 22.4 percent in 1995 to 
19.4 percent in 2002. According to the World Bank, the Philippines' reforestation efforts 
had been inconsistent with minimal tree survival rates. The increasing demands of 
urbanization and industrialization have lead to environmental transgressions such as illegal 
logging and forest fires. 
This bill seeks to address the need to restore the richness of our biodiversity by 
reviving the richness of our forests through the planing of one billion trees all over the 
country. The proposed measure enlists the participation of different sectors of society in the 
task of restoring the grandeur of our forests lands. Various government agencies, local 
government units, non-government organizations, private landowners, corporations, 
indigenous peoples, individual families and government personnel who form themselves 
into cooperatives, the upland, lowland and coastal communities, and interested individuals 
are in partnership to plant forest and fruit tree species in private lands, in idle portions of 
alienable and disposable lands (A & D), and open and denuded public forest lands. 
Groups and individuals who participate in this program are given benefits and 
incentives. For instance, those who planted and maintained the trees along highways, 
roadsides, and other vacant portions of public A & D land shall have exclusive right to 
harvest and utilize the trees when they mature. Moreover, community-based forest 
managers shall have the right to make the reforested and protected area an eco-tourism 
spot. They can collect entrance fees and put up income-generating auxiliary services for the 
maintenance and conservation of the area. They are also exempted from forest charges and 
real property tax. 
Finally, this bill makes it illegal for any person who is not a member of the 
community or cooperative who planted the trees to cut or gather trees from reforested 
areas. It will also prohibit the conversion of forestlands into agricultural, pasture and 
mining and other non-forest uses. 
For these reasons, the passage of this bill is earnestly sought. 
LOREN LEGARDA 
Senator 


Introduced by Senator Loren Legarda 
AN ACT 
TO 
SPUR 
THE 
PLANTING 
OF 
A 
BILLION 
TREES 
THROUGH 
COMPLEMENTARY TREE PLANTING PROGRAMS OF THE DENR AND 
VARIOUS GOVERNMENT AGENCIES, LOCAL GOVERNMENT UNITS AND 
COMMUNITIES, SCHOOLS AND UNIVERSITIES, AND CIVIC AND NON- 
GOVERNMENTAL 
ORGANIZATIONS, 
PROTECTING THE 
REMAINING 
NATURAL FORESTS AND FOREST PLANTATIONS, AND CREATING A FUND 
THEREFORE, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
BASIC POLICIES, OBJECTIVES, COVERAGE 
AND IMPLEMENTING AGENCIES INVOLVED B 
SECTION 1. Short Title. This Act shall be known as the "Billion Trees Act of 
2007." 
SECTION 2. Declara€ion of Policy. The 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 protection and rehabilitation of forest lands shall be given the 
highest priority to ensure environmental stability of the nation. 
The State shall adopt and implement a sustainable forest development and 
management program. It shall promote the participation of all sectors of society, 
particularly national government agencies, the upland, lowland, and coastal 
communities, local government units (LGUs), non-governmental organizations (NGOs), 
schools, colleges and universities, private landowners and corporations and indigenous 
people in replanting denuded forest land and idle and disposable (A & D) land. 
The State shall likewise promote community-based forest management. 
SECTION 3. Objectives. The Billion Trees Program aims to improve the 
country's ecology and the forest regeneration capacity. More specifically, it intends: 
(a) To significantly increase reforestation efforts in upland, lowland and coastal 
communities in a more efficient manner; 


(b) To reverse the deteriorating effects of soil erosion, flash flooding, siltation of 
rivers and dams, drought and other negative consequences of denuded 
upland; 
(c) To make forest and fruit tree seedlings available and more accessible to all 
cities and municipalities in the country; 
(d)To promote forest diversity by planting dipterocrap, pine, mossy and 
mangrove forest species in portions of the plantation whenever feasible; 
(e) To help rehabilitate wildlife habitat through effective forest protection 
strategy; 
(0 To ensure adequate supply of forest and agricuIturaI products in the future; 
(g) To generate employment opportunities and provide additional income to the 
countryside and rural communities. 
SECTION 4. Coverage. At least one million (1,000,000) hectares of open and 
denuded public forest lands, private lands, and idle portions of alienable and 
disposable (A & D) lands are targeted for the for the fist five (5) years to be planted to 
both forest and fruit tree species. 
SECTION 5. Definition of Terms. As used in this Act, the following terms shall 
(a) ”Critical watershed” refers to a drainage area of a river system, lake or water 
reservoir supporting existing and proposed hydroelectric power plants, 
domestic water supply, and irrigation works needing immediate 
rehabilitation and protection to minimize soil erosion and improve water 
yield. 
mean: 
(b)”Community” is a group people who may or may not share common 
interests, needs, visions, goals, and beliefs, occupying a particular territory 
inside or adjacent to forest land or national park. 
(c) “Eco-tourism spot“ is a plantation site developed for biodiversity 
conservation, cultural, and human enjoyment such’as a forest park, bird, and 
some wildlife sanctuary, and where sound tourism activities are 
sustainability implemented, yielding socio-economic benefits. The developer 
can put up auxiliary services, collect appropriate fees, for his/her income 
and for the maintenance of the area. 
(d) ”Forest diversity” is the variety and variability of forest species growing in 
the forest land. In the plantation, at least three (3) different species, including 
fuelwood species, and other species such as banana, bamaboo, etc., should be 
planted every ten (10) hectares, with the least planted species occupying at 
least one-fith (1/5) of the ten-hectare area. 
(e) “Forest charges” refer to the charges imposed and collected by the 
government on forest products cut, harvested or gathered from forest lands 
as specifically provided for under Republic Act No. 7l61. 


(f) "Forest lands" are those lands of the public domain, which have been 
classified into production forest lands and protection forest. Forest 
reservation refers to forest lands which have been set aside by the law for a 
specific purpose, such as watershed reservation, military or civil reservation. 
(g) "Community-based Forest Management and Agreement (CBFMA)" refers 
to an agreement between the Department of Environment and Natural 
Resources (DENR) and an organized community acting through its duly 
authorized forest manager, known as community-based forest manager 
(CBFM), for the management by said community of a specified area in the 
public domain according to a comprehensive management and development 
plan and, in consideration therefore and certain other obligation, grants, said 
community the right to harvest, process, sell or otherwise utilize €he trees and 
other products grown by them or from the residual forest within their 
specified area. The agreement is granted for fifteen (15) year, renewable for 
another fifteen (15) years. 
All references to "Forest Land Management Agreement (FLMA)" and "Forest 
Land Manager (FLM)" are likewise hereby amended as "Community-based 
Forest Management Agreement (CBFMA), and Community-based Forest 
Manager (CBFM)" and Community-based Forest Manager (CBFM)", 
respectively. 
(h) "Fuelwood species" are species of high calorific value and are suitable for 
fuelwood or firework such as, but not limited to ipil-ipil, kakawate, agoho, 
kamachile, gmelina, acacia, bakaua, and neem tree. 
(i) "Industrial Forest Plantation Management Agreement (IFPMA)" is a 
contract entered into by and between a qualified person and the government 
for the former to occupy and possess for a definite period of time in 
consideration of a specified rental a specific area of the production forest 
land, in order to establish an industrial forest plantation, 
(j) "Indigenous peoples" refer to a tribe or indigenous Filipinos who have 
continuously lives as communities on communally bounded and defined 
land since time immemorial and have succeeded in preservations, 
maintaining and sharing common bonds or languages, customs, traditions, 
and other distinctive cultural traits. 
(k) "Military reservation" refers to forest land which have been proclaimed by 
the President for military purposes such as air bases, campsites, docks and 
harbors, firing ranges, naval bases, target rangers, and wharves. 
(l) 
"National Park" refers to a land of the public domain essentially of natural, 
wilderness, scenic or historic character which has been withdrawn from 
settlement, occupancy, or any form of development, except in conformity 
with an approved management plan, and set aside such to conserve the area 
and to preserve the scenery, the natural and historic objects, wild animals and 
plants therein mainly for biodiversity and/or human enjoyment. 
(m) 
"People-oriented forestry" is a program democratizing access and 
management of forest land to poor upland and coastal dwellers. Aside from 


CBFMA, this may include Integrated Social Forestry Program (ISFP), 
Community Forestry Program (CFP), and Ancestral Land Management. 
(n) "Silviculture" refers to scientific method of growing forest trees, their 
management and harvest. This includes such practices as assisted natural 
regeneration (ANR), timber stand improvement (TSI), and selective cutting 
method. 
(0) "Private lands" refers to lands covered by either administrative or judicial 
titles such as free patent, homestead, and sales patent, torrens title obtained 
under the Land Registration Act (Act No. 49), as amended. 
SECTION 6. Implementing Agencies Involved. The following departments 
shall perform major roles: 
(a) The Department of Environmental and Natural Resources (DENR) and its 
network of kovincial/Community Environment and Natural Resources 
Offices (PENROs/CENROs) shall be the overall coordinating and monitoring 
agency of the Program, particularly in the identification, selection and 
allocation of sites, making available quality planting materials, using 
recyclable potting materials whenever possible, the planting of the right 
species in particular areas, prioritization of critical watersheds, application of 
efficient reforestation technologies like cover cropping prior to plantation, the 
planting of fuelwood species in specific areas, the necessary steps to protect 
the remaining natural forests and national parks, and information and 
campaign drive 
It shall ensure that the permit to cut and transport trees from plantation 
shall be issued within thirty (30) working days from the date the application 
is filed. 
(b) The Department of Interior and Local Government (DILG) and local 
government units (LGUs) shall mobilize the police and help organize 
commuhities and other sectors of society to participate in the Program. It 
shall create special police units. 
(e) The Department of National Defense (DND) shall organize a special unit 
whose main responsibility is reforesting denuded portions of military 
reservations and other areas designated by the DENR, and protecting 
forested areas, both natural and plantation. It shall also assign DND 
personnel on a full-time basis in protecting forest areas, in accordance with 
Section 24 hereof. 
(d) The Department of Agriculture shall assist upland communities raise fruit 
tree seedling, and provide them know-how on proper and sustainable 
agricultural technologies and practices. 
(e) The Department of Education (DepEd) shall strengthen environmental 
education and mobilize the students to plant trees and take care of them in 
appropriate vacant areas in their localities. 


(0 The Department of Public Works and Highways (DPWH) shall organize 
special units to plant appropriate and available species on strips of land along 
national and arterial roads and maintain and protect them. 
(g) The Department of Tourism (DOT) shall identify and promote eco-tourism 
plantation in coordination with the DENR. 
(h) Other government agencies and state colleges and universities with 
administrative jurisdiction over tracts of public lands shall, as necessary, also 
rehabilitate and reforest said lands. 
CHAPTER 2 
REFORESTATION BY UPLAND COMMUNITIES 
SECTION 7. Community Reforestation with Community-Based Forest 
Management Agreement (CBFMA) - New reforestation, assisted natural regeneration 
(ANR), and related programs shall be awarded mainly to upland and coastal 
communities. Individuals families, police, military, and other government personnel 
who wish to participate shall form themselves into cooperatives. The agreement shall be 
granted for twenty-five (25) years, subject to the terms and conditions in the CBFMA 
and subsequent rules and regulations promulgated in accordance with Section 36 
hereof. 
SECTION 8. Role of Non-governmental Organizations (NGOs) and Academic 
Institutions. The NGOs and academic institutions shall be tapped to handle relevant 
services, especially social and technical training and monitoring and evaluation of the 
reforested area: Provided, that the NGOs and academic institutions that handled the 
training will not be the same ones that will conduct the monitoring and evaluation of 
the reforested area. 
SECTION 9. Rights and Obligations of the Community-Based Forest Manager 
(CBFM). The CBFM can harvest, process, sell or otherwise utilize the products grown 
by him/her on land covered by the CBFMA, or make portions of the contracted area 
into an eco-tourism spot. The CBFM shall have the following obligations: 
(a) Practice appropriate silvicultural system or cutting regimes for mature trees 
in accordance with management plans; cleared areas shall be immediately 
replanted within one (1) year after cutting; 
(b) Promote forest biodiversity by planting indigenous forest species and 
conserving natural forest species in contracted forest areas. Fuelwood trees 
can be planted to add to species diversity and to eliminate the community’s 
need to cut prime wood species for fuel and charcoal purposes. 
(c) Pay the government through the DENR, a production share out of income 
from sales of products harvested from the CBFMA areas in an amount 
equivalent to the real value of government investment in the area; 
(d) The awarded groups shall ensure high survival rate of planted seedlings, 
maintain and protect trees until maturity, in exchange for their right to 
harvest and utilize and trees after sometime. 


SECTION 10. Additional Area for Fruit Trees Plantation. For every six (6) 
hectares of area planted to forest species, the community is allowed to plant one (1) 
hectare to fruit trees and other agricultural crops. The land tenure shall be co-terminus 
with the terms of the CBFMA. 
The DA and developed extension workers shall assist the community contracts 
raise fruit tree seedlings. They shall also train the communities proper agricultural 
technologies and practices. 
SECTION 11. Other Incentives. CMFMs shall enjoy the foIIoWing benefits: 
(a) Reforested are as an eco-tourism spot. Community forest managers and 
CBFMs shall have the right to make the reforested and protected area an eco- 
tourism spot. They can colIect gate/entrance fees and put up income- 
generating auxiliary services for the maintenance and conservation of the 
area. Operation of the area shall be coordinated with the Deparhnent of 
Tourism (DOT) for tourism promotion, and the LGUs for infrastructure 
support and collection of appropriate taxes. 
(b) Market linkage for the agricultural output. The DA, in coordination with 
agribusiness research organizations of the private sector shall update upland 
farmers of market prices of fruits and other agricultural products, and assist 
them in identifying buyers and marketing outlets. 
(c) Market linkage for their forest products. The DENR and other concerned 
agencies and groups, shall update upland forest managers and CBFMs of 
domestic buyers of particular forest products, including the specified product 
quality. 
(d) Option to turn over the management and right to harvest the reforested land 
to the DENR at least after five (5) years of the CBFMA. This is particularly 
applicable in plantations and ecotourism spots where the trees are better left 
to grow and mature beyond the fifty (5) year constitutional limit. The 
government, through the DENR, shall compensate the CBFM the amount 
equivalent to the stumpage value of standing trees minus real investment of 
the government in the area. 
(e) Priority to be granted additional area for reforestation with CBFMA, or 
through an Industrial Forest Plantation Management Agreement (IFPMA) of 
purely plantation establishment type. 
(Q Exemption from forest charges and real property tax. CBFMs arid awardees 
of other people-oriented forestry programs shall be exempted form paying 
taxes on revenue from reforested and protected areas. 
(g) Right to secure the growing trees. CBFMs may use the plantation of at least 
five (5) years old with adequate forest stand, in the issuance of asset-backed 
securities, such as bonds and stocks, to finance the reforestation of another 
area. Said asset-backed securities shall enjoy tax breaks and other incentives 
whenever possible, already provided under existing laws. 


CHAPTER 3 
REFORESTATION BY AFP/l”P PERSONNEL 
SECTION 12. Reforestation of Denuded Military Reservation Areas. 
Spearheaded by the organized special units, all units of the Armed Forces of the 
Philippines (AFP) stationed in the military reservation area, whether temporarily or 
permanently, shall be involved in reforesting denuded portions of the area not utilized 
for military and training purposes. They and the succeeding units shall maintain and 
protect the trees until maturity. Reforestation cost for three (3) years shall be funded by 
the DND. Likewise, maintenance cost shall be shouldered solely by the DND. 
SECTION 13. Incentives. The military and police personnel participating in the 
reforestation shall be entitled to the following incentives. 
(a) Additional allowance in compensation for the particular task or phase of the 
contract they have completed; 
(b) Rights and obligations of the Community-based Forest Manager under 
Sections 9 and 11 above; 
(c) Acquisition of the shares of stock of the cooperative/corporation to be formed 
representing the economic value of trees planted; 
(d) Earning from said stocks and revenue shares from the saIe of forest products 
yielded by the plantation as their retirement credits in the future. 
SECTION 14. Report to the DENR. The AFP and the PNP shall submit an 
annual report to the DENR on the progress of their projects. Including the area they 
have reforested, and the results of their operations in forest protection as mandated in 
Chapter 6 of this Act. 
CHAPTER 4 
PRIVATE INDIVIDUALS AND CORPORATIONS’ INVOLVEMENT 
SECTION 15. Adoption of a Reforestation Project. Private corporations, 
foundations, foreign and local NGOs, and similar institutions shall be invited by the 
DENR and local government officials to adopt and finance a denuded area for 
reforestation and protect trees. The assistance can be channeled directly from the donor 
to the upland implementers and beneficiaries and assisting local NGOs, The DENR 
shall be informed of such arrangement for assistance in identifying priority areas of 
reforestation. If funds are channeled through the DENR, the latter shall enter into a 
Memorandum of Agreement (MOA) with the donor to account for wise and proper 
spending of the donated funds. 
SECTION 16. Adoption of a Forested Area for Protection. The private sector, in 
coordination with the DENR, may adopt a particular forested area, like portions of a 
national park, for protection and biodiversity conservation through MOA with the 
DENR. The mechanics for the channeling of funds as specified in Section 15 above shall 
be adopted. The DENR shall be identify and publish area available for adoption. 


SECTION 17. Development of Private Forestry and Incentives. Private 
landowners who shall plant forest trees in their lands shall enjoy the following 
incentives: 
(a) Technical assistance from the DENR on proper silvicultural practices. 
@)Update of forest products market and prices by the DENR and wood 
producers’ groups or association. 
(c) Exemption from forest charges under Republic Act No. 7161 and value-added 
tax (VAT) for the sale, barter or exchange of timber and forest products, and 
from real property tax under Republic Act No. 7160; 
(d) Priority in credit assistance granted by the government-owned and controlled 
corporations at reasonable interest rates; and 
(e) No restriction in exporting timber and other forest products grown in the 
land. 
For certification purposes, tree plantations shall be registered with the barangays 
and municipal offices which shall maintain permanent registry books. 
SECTION 18. Planting of Fuelwood Species. The DENR shall disseminate 
technology on the planting of fuelwood species for firewood purposes to lessen the 
pressure on the cutting and harvesting of prime wood species for firewood purposes, 
SECTION 19. Ownership of Planted Trees Along Highways. Those who 
planted and maintained the trees along highways, roadsides, and other vacant portions 
of public act A & D land shall have exclusive right to harvest and utilize the trees when 
they mature. The local CENRO shall allocate among interested individuals and/or 
groups the space available for this arrangement, and issue the necessary papers 
granting such exclusive rights and ownership to the awarded party. 
Should the local DENR office and the local government unit decide to keep the 
trees for ecological and beautification purposes, they shall compensate the parties who 
planted and protected the trees the value equivalent to the market value of the trees at 
the time the turn-over is made. 
SECTION 20. Recognition Award. In recognition, the DENR, the department of 
Trade and Industry (DTI) and the Philippine Information Agency (PIA) shall advertise 
the names of participating corporations, agencies and NGOs and their environmental 
projects. Awards and recognition shall be determined by the DENR in collaboration 
with other government agencies in the implementing rules and regulations (IRR) to be 
promulgated pursuant to Section 36 of this Act. 
CHAPTER 5 
REFORESTATION BY LOCAL GOVERNMENT UNITS 
SECTION 21. Seedling Nursery in Every City/Municipality. Pursuant to 
Section 1% (1.I 3iii) of the Local Government Code, seedliig nurseries shall be 
established in every city or municipality, for this purpose, local governments shall be 


allowed to enter into contract with private enterprises. Nursery supervisors whose 
positions shall be created by LGUs shall be hired and designated by LGUs to establish 
and oversee such nurseries containing both forest and fruit tree species, though mainly 
the former, seeds shall be sourced from certified Seed Production Areas (§PAS) certified 
by the DENR. 
SECTION 22. Establishment of Mini-Forest Parks in Every City/Municipality. 
Every city or municipality shall establish a mini-forest park or multi-purpose park such 
as a botanical garden at a ration of not less than one (1) park per fifty thousand (50,000) 
population, each park to be at least half a hectare or five thousand square meters (5,000 
s4.m.) in area whenever practicable or to the extent possible. Each city or municipality 
shall submit to the DENR the list of available lands for such purpose and include in its 
yearly budget the necessary funds for the establishment and maintenance of the urban 
forest parks. The Secretaries of the DENR and DILG shall coordinate closely to ensure 
compliance with this provision, and shall coordinate with various agencies of the 
national government and the private sector to enhance the implementation of urban 
forestry. 
Roadsides and islands, campuses, office compounds, cemeteries, riverbanks, 
shorelines and other areas shall also be planted with trees. Students, employees, 
members of civic and people's organizations shall be invited to undertake the activity. 
The maintenance and protection of the trees shall be closely coordinated by the LGUs, 
the DENR and all other concerned agencies. 
Every subdivision project to be developed after the promulgation of this Act 
shall be included the establishment of parks not less than twenty five percent (25%) of 
the required open space in accordance with Presidential Decree No. 953. Guidelies for 
the establishment and maintenance of these parks within subdivisions sMl be prepared 
jointly by the Housing and Land Use Regulatory Board (HLURB) and the Department 
of Environment and Natural Resources. 
SECTION 23. Recognition of Outstanding of "Greenest" City or Municipality. 
Three (3) years after the effectivity of this Act, the outstanding city or municipality iin 
each province having the best mini-forest parks and reforested idle portions of A & D 
land shall be given recognition and awards by the DENR and promoted by the 
Department of Tourism (DOT) as among the priority eco-tourism destination areas in 
the country; Provided, that the necessary infrastructure and tourism services must 
already be in place before the area is promoted as an ecotourism attraction. 
CHAPTER 6 
FOREST PROTECTION 
SECTION 24. Forest Protection Teams. The Secretary of DENR shall enforce 
forestry laws to protect the remaining natural forests and plantation forests from illegal 
loggers, poachers, kahgin farmers, pests and diseases, fires and other forest destroyers. 
Forest protection teams under the DENR shall be organized consisting of personnel 
drawn from the DENR, the AFP, and the PNP on a full-time basis. They shall be 
assisted by personnel from other government agencies, civilian volunteers, and 
concerned NGOs. Equipments shall be acquired by the DENR aside from equipment 
support provided by other units. 


SECTION 25. Incentives. Members of the teams shall be granted incentives to 
include, but not limited to, higher base pay, hazard pay, uniform allowance, group 
issuance, and a reward system of twenty percent (20%) of the value of the confiscated 
materials. 
SECTION 26. Forest Protection Equipment. The DENR, as lead agency, the 
DILG, and the DND, shall provide the teams with primary equipment such as aircraft, 
global positioning systems, land transportation, communication facilities, ground fire 
fighting equipment, and basic pesticides against common forest pests and insects. 
SECTION 27. Control of Forest Conversion to Agricultural Use. The DENR, the 
DA, and the Department of Agrarian Reform (DAR) shall stop illegal conversion of 
forest lands into agricultural, mining, pasture, and other non-forest uses of the land. 
The DENR shall cause the cancellation of instructions issued such lands and repossesses 
said lands for reforestation purposes, and the farmers shall be organized to regenerate 
the land through people-friendly forestry. 
SECTION 28. Sloping Agricultural Land Technology (SALT). In direct support 
to this reforestation program, the SENR, the DA, and the DAR shall implement the 
Sloping Agricultural Land Technology (SALT) and other applicable technology in all 
upland areas cultivated by their respective program clientele/beneficiaries for 
agricultural purposes. 
CHAPTER 7 
FINANCING THE PROGRAM 
SECTION 29, Program Cost. The cost of the Billion Trees Program shall not 
exceed Seven Hundred Fifty Million Pesos (P750,000,000.00) per year for a period of five 
(5) years. Two Hundred Fifty Million Pesos (P250,000,000.00) of which shall be 
appropriated. The sources of the other Five Hundred Million Pesos (P500,000,000.00) 
are hereby identified. 
SECTION 30. Forest Management Fund. The Forest Management Fund (FMF) is 
hereby created for the plantation, protection and management of the billion trees. For 
this purpose, fifty percent (50%) of the forest charges collected under the Republic Act 
No. 7161 under Timber License Agreement P A ) ,  or in the cause of Timber Production 
Sharing Agreement (TEA), fifteen percent (15%) of the government share therefrom; 
forest users fees; silvicultural fees; rentals for specid use of forest lands; all proceeds 
from disposition of illegal cut forest products and timber and penalties and fines, shall 
go to the Fund. 
The Fund shall be administered by a body created by the DENR which shall 
include but shall not be limited to representatives from the wood industry, a 
nongovernmental organization, the duly accredited forestry professional association, 
the Department of Budget and Management, the DILG and local government units and 
the DENR itself. The body shall establish the necessary operating guidelines of 
allocation, use and safeguarding of the Fund. 


SECTION 31. Other Sources of Funds. 
(a) At least one percent (1%) 
of the Countrywide Development Fund of Senators 
and Congressmen, which shall be managed by them in coordination with 
local government units; 
(b) Securitization of the grown trees which are at least five (5) years old which 
may be used as asset-backed securities, such as bonds and stocks, to finance 
the reforestation of other areas, whether by upland communities, AFP/PNP 
personnel, or the private sector. 
SECTION 32. Fund Management. In the case of the contract reforestation, the 
funds shall be channeled by the Department of Budget and Management (DBM) 
through the Land Bank of the Philippines (LBP), the Development Bank of the 
Philippines (DBP), or the LBP/DBP accredited rural banks. Funding shall be 
discontinued if found misused and scheduled activities not followed. The DENR shall 
be advise the banks the amount and the period of release of funds to the community 
contractors. 
CHAPTER 8 
CRIMINAL OFFENSE AND PENALTIES 
SECTION 33. Misuse of Funds. Any contractor, officers of the cooperatives 
government officials including local officials, and employees, who shall unlawfully and 
maliciously divert funds under this Act for purposes other than intended, shall be 
criminally prosecuted and, if found guilty, shall be punished with imprisonment of not 
less than four (4) months but not more than four (4) years. 
SECTION 34. Illegal Cutting of Planted Trees. Any person who is not a 
member of the community or cooperative who planted the trees who shall cut or gather 
trees from reforested areas, shall be fined with twice the current market value of the 
trees removed, and/or imprisoned for not less than four (4) months but not more than 
four (4) years. 
SECTION 35. Premature Cutting of the Planted Trees and Noncompliance 
with Other terms of CBEMk CBFMs who shall prematurely cut the trees up to one- 
fifth (1/5) of the area without any authority from the PENRO or CENRO, or replant 
dipterocarp and other endemic specieis, not in accordance with sound forestry 
management practice, shall be disqualified from their rights under the CBFMA and 
shall not be compensated for the value of the remaining standing trees. The jurisdiction 
of the reforested are shall revert back to the DENR. In additional, if the estimated value 
of the felled trees is larger than the real investment of the government in the area, such 
guilty party shall pay the difference in value; shall not be eligible for future government 
reforestation and other forestry-related activities; and shall be criminally prosecuted 
and imprisoned for a period of not less than four (4) months but not more than four (4) 
years. 


CHAITER 9 
ADMINISTRATIVE PROCESURES AND SPECIAL CLAUSES 
SECTION 36. Monitoring and Evaluation. Periodic monitoring and evaluation 
of reforestation contract, other people-oriented forestry, urban reforestation, and forest 
protection activities shall be conducted by the CENRO/PENRO or an independent 
entity contracted for the purpose, whichever is practical, to ensure that proper use of 
resources and desired targets are accomplished on time. 
SECTION 37. Promulgation of Rules and Regulations. The Secretary of the 
DENR, in coordination with the Secretaries of the DILG and the DND, shall prepare 
and publish the rules and regulations implementing this Act within sixty (60) days from 
the date of its effectivity. 
SECTION 38. Separability Clause. If any provisions of this Act shall be held 
unconstitutional, the remaining portions not otherwise affected shall remain in full 
force and effect. 
SECTION 39. Repealing Clause. All laws, executive orders, rules and 
regulations, or parts thereof inconsistent with any of the provisions of this Act are 
hereby amended, repealed or modified accordingly. 
SECTION 40. Effectivity. This Act shall take effect after its complete publication 
in at least two (2) newspapers of general circulation. 
Approved,