Republic of the Philippines
HOUSE OF REPRESENTATIVES | /// QECE
Constitution Hills, Quezon City {fs 7 ain

NINETEENTH CONGRESS
First Regular Session

144

House Bill No."

Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ

EXPLANATORY NOTE

A 2015 World Resources Institute study warned that the Philippines will likely
experience a "severe water shortage” in the year 2040. This is not surprising given the
fact that in the World Bank’s 2003 Philippine Environment Monitor, it was already
reported that as of year 2000, compared to other countries in Southeast Asia, the
Philippines already ranked 2nd to the lowest in terms on annual renewable water
resources per capita,

Climate change hazards (rainfall variability, increasing temperatures, rising sea
level and more extreme weather) which pose major risks to water resources and a
growing population will further aggravate this situation. PAGASA’s downscaled
climate projections have shown that the country's water resources will be one of the
most adversely affected by climate hazards. This highlights the urgent need to properly
plan for and manage our finite water resources in order to meet the increasing demand
‘of a growing population, continuing economic development amidst many competing
users.

The outcome document of the Rio +20 Farth Summit, entitled “The Future that
We Want” emphasized just how important water is by stating that that “Water is at the
Core of Sustainable Development”. It is acknowledged that there can be no
development without water; there can be no life without water. Or to put it more
succinctly, Water is Life!

Access to safe and potable drinking water as a basic right was recognized by the
United Nations as one of its Millennium Development Goals (MDGs) In July 28, 2010.
122 countries formally acknowledged this "right to water" in a UN General Assembly
Barely two months later, the ITN Human Rights Council adopted a binding resolution
recognizing that the human right to water and sanitation is part of the right to adequate
standard of living.

Yet, in the Philippines, as of 2015, more than 12 million people still get water
from unsafe sources. More than four million people do not have access to sanitary


toilets and thus, defecate openly. An additional two million are limited to unimproved
sanitation facilities.

As pointed out by the Philippine Water Supply and Sanitation Master Plan
(PWSSMP), it is imperative that these present problems are addressed considering the
adverse impacts that unsafe water supply and polluted waters have on people's health,
and the economy.

Based on the 5-year data from the National Epidemiology Center of the
Department of Health, 31% of illnesses was water related. [t has been estimated that
the economic impacts of poor sanitation to be in the order of US$ 1.4 billion, equivalent
to about 1.5% of GDP in 2005 with health impacts accounting for 72% at USS1B.
Fpisodes of red tides and fish kills in different parts of the country highlight the extent
of the losses of livelihood of our fisher folks from polluted waters. And the recent
closure of Boracay due to severely polluted waters (mainly coming from sewage) also
highlights the adverse impacts of dirty waters on the tourism industry, which is a major
contributor to economic growth.

Unfortunately, the management of the country’s water resources remains
fragmented and uncoordinated with over 30 government units and agencies at national
and locai levels implementing separate and disharmonized policies, plans and
programs to develop and operate water facilities and infrastructure for various uses,
regulate water use and set tariffs, and monitor water-related parameters. This
continued overlapping and fragmented management and regulation of water resources
and services hinders the enactment and implementation of a comprehensive, integrated
and doable long-term solution to address keener competition, imbalance resource
utilization and conflict of interests among water users, especially in areas already
identified as water-stressed, It puts at risk the attainment of the SDG target of universal
access to safe water supply and improved sanitation by 2030.

There is an urgent need for an integrated and coordinated planning and
implementation of programs and projects that promote synchronized, sustainable and
science-based management of the country’s water resources that would address the
imbalance in water resource utilization, reduced water availability, declining water
quality, recurrent flooding, and other water-related issues in many parts of the country.
This cannot be achieved without addressing the fundamental governance and
institutional issues of the sector.

Consistent with the various studies, plans, and initiatives conducted in the past
two (2) decades which have supported the need for the establishment of a strong apex
body for the water resources sector, the Philippine Development Plan (2017-2022)
identified as a primary strategy for the water supply, sewerage and sanitation sub-
sector the creation of an apex body for water resources management and the
formulation of master plans to address the fragmented structure and that foster
coordinated efforts across the country. This actually holds true for the entire water
sector.


An apex body for the water sector is critically needed in order to have a single
entity that will be in charge of the overall planning, programming, policy formulation,
and management for the sector. It will serve as the sector’s champion and ensure that
subsector policies and plans are aligned with the overall Sector Master Plan. It will
coordinate, monitor and evaluate sector performance and take appropriate action as
needed. It will conduct extensive and regular hydrological studies/analyses which are
very vital for water planning and allocation purposes.

It is thus proposed that a Department of Water Resources be created to ensure

that Filipinos benefit from this fundamental human right and that this finite resource
will be sustained. The immediate approval of this bill is earnestly sought,

EDWIN L. OLIV,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session
44
House Bill nol! :

Introduced by: REPRESENTATIVE EDWIN L, OLIVAREZ

AN ACT

ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE

MANAGEMENT

AND CREATING THE DEPARTMENT OF WATER RESOURCES AND THE

WATER
REGULATORY COMMISSION, DEFINING THEIR MANDATES, POWERS AND
FUNCTIONS,
AND APPROPRIATINGS FUNDS THEREFOR

Be it enacted by the Senate anu House of Representations of the Philippines in Congress
assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “National Water
Act’,

SECHION 2. Declaration of Policy. - Access to water is a basic human
right. All water belongs to the State which shall govern its development and utilization
for the people.

It is hereby declared the policy of the State to ensure the provision of safe,
adequate, affordable, and sustainable water supply and improved sanitation services,
while maintaining the protection, preservation, and revival of the quality of the
country’s water resources and ecological balance.

In pursuit of this policy, this Act shall have the principal objective of ensuring
and accelerating universal access to water supply and sanitation services, in a
regulatory regime that encourages responsible private sector participation, and shall
foster and prioritize the establishment of infrastructure and public works that adopt
innovative solutions and international best practices to address the challenges of


climate change. Further, all water and water treatment infrastructure projects are
hereby declared as projects imbued with national interest.

SECTION 3. Definition of Terms. - As used in this Act:

{a) Bulk water supplier refers to any entity, natural or juridical, whether public
or private, supplying or intending to supply large quantities of raw or treated water to
buyers who will use these for their own consumption, such as industrial companies, or
for retail distribution to consumers such as water service providers or real estate
developers managing their own distribution network

(b) Environmental services refer to qualitative functions of natural non-produced
assets of land, water, and air, including related ecosystems, and their biota, and which
may be categorized into three basic types: (a) disposal services which reflect the
functions of the natural environment as an absorptive sink for residuals; (b) productive
services which reflect the economic functions of providing natural resource inputs and
space for production and consumption, and (c) consumer or consumption services
which provide for physiological as well as recreational and related needs of human
beings.

(c)Flood Control refers to methods, acts, and protocols to be observed in order to
prevent and reduce the detrimental and catastrophic effects of flood waters which
include sediment-laden or turbid flows, and hyper-concentrated flows or debris flows.

(d) Flood Risk Management (FRM) refers to such acts of defining and
determining the appropriate methods, acts, and protocols aimed at preventing and
reducing the risk of incurring loss of both life and property due to flood waters. Flood
risk management consists of a cycle of prevention, mitigation, adaptation, preparedness.
and early warning, and response and recovery. The elements of FRM include:
integrating land-use planning and coastal zone management into water management;
adopting a holistic approach so that FRM is part of wider risk or multi-hazard
management of earthquakes, landslides, and storm surges; managing risk and
uncertainty as a whole so it not only mitigates hydrological uncertainties but also social,
economic and political uncertainties on account of human behaviour and the cultural
dimensions of FRM.

(e) Gender Equality refers to the principle asserting the equality of men and
women and their right to enjoy equal conditions realizing their full human potentials
to contribute to and benefit from the results of development, and with the State
recognizing that all human beings are free and equal in dignity and rights.

() Infrastructure and public works refer only to wholly or primarily water
related projects and does not include projects that do not fall within the purview of the
objectives, power and duties of the Department of Water Resources created under this
Act.

(g) Integrated Water Resource Management (IWRM) refers to a systematic,
collaborative, and multi-stakeholder process which promotes the coordinated
developmentand management of water, land, and related resources within geophysical
boundaries in order to maximize the resultant economic and social welfare in an
equitable manner, and without compromising the sustainability of vital ecosystems.

{h) Levels of water supply refer to communal sources of water described
according to location and size of the recipient human settlement as follows:


(1) Level I or the point source is a protected well or a developed spring with an
outlet but without any distribution system, generally adaptable to rural and upland
areas where houses are thinly scattered , and is a facility which usually serves an
average of 15 households,

(2) Level Il or the communal faucet system or stand posts is a system composed
of water source, a reservoir, a piped distribution network, and communal faucets where
one faucet serves 4 to 6 households and is generally suitable for rural and urban fringe
areas where houses are clustered densely to justify a simple piped system.

3) Level III or the waterworks system or individual house connections is a system
with a water source, a reservoir, a piped distribution network and household taps,
suitable for densely populated urban areas.

{i) License refers to the Water Supply and/or Sanitation Services Operating
License that the Water Regulatory Commission is authorized to grant and issue to
service providers.

{j) Licensee refers to a service provider to whom a license is granted or issued by
the Water Regulatory Commission.

(k) Missionary Water Services refer to water supply or services to areas that have
no existing safe water supply and services due to geographic limitation or absence of
economic and market viability.

(1) National Water Resources Management Plan (NWRMP) refers to a policy
document that contains a framework to guide the development and management of all
the water resources in the Philippines, the general strategies and work to be pursued to
ensure the sustainability of the resource towards water security, and top-level direction
on the utilization of existing water resources in line with national development plans,
policies, and programs in accordance with the IWRM framework. The NWRMP shall
also include a water infrastructure development program or all waters of the country
as well as provide general guidance on how this shall be supported within an integrated
financing framework that can draw from public, private, and international
development funding sources.

(m) Net Waste Load refers to the difference of the initial waste load of the
abstracted water and the waste load of the final effluent discharge of an industry

(n) Regulatory Units refer to the offices established under Section 20 of this Act
which issue licenses authorizing the operation of Water Supply and Sanitation Services,
and provide, review, determine, fix, and approve water and sewerage tariffs, rates, and
charges that licensces may impose.

(0) River basin refers to an area of land drained by a stream or body of fixed
water and its tributaries which have a common outlet for surface run-off.

{p) River Basin Organization (RBO) refers to multi -stakcholder organizations
which plan, coordinate, and monitor activities within a river basin cluster.

(q) Sanitation refers to the provision of facilities and services for the safe
management of human excreta, from toilet to containment, and storage and treatment
onsite or conveyance, treatment and eventual safe end use or disposal, and includes the
safe management of solid waste and animal waste.

(r) Sediment management refers to control of sediment erosion and deposition
in rivers, reservoirs, and coastal zones through non-structural and structural measures
and control works.



{s) Sustainable Development Goals (SDGs) also known as the 17 Global Goals
refer to the universal call to action to end poverty, protect the planet and ensure that all
people enjoy peace and prosperity by 2030 adopted by all United Nations Member
States in 2015.

(t) Septage is the liquid and solid material pumped from a septic tank, cesspool,
or other primary treatment source.

(u) Septage Management refers to the provision of proper collection, treatment,
and disposal of septage.

{v) Service Area refers to the area covered by the water distribution system,
sewerage, and /or septage management services.

{Ww) Service Provider refers to any entity, natural or juridical, whether private or
public, providing or intending to provide levels II & Ili water supply, including bulk
water suppliers, sewerage, septage treatment, and disposal services for domestic,
residential, industrial or commercial use.

(x) Sewage refers to water borne human or animal wastes, excluding cil or oil
waste, removed from residences, buildings, institutions, and industrial and commercial
establishments together with such groundwater, surface water and storm waters as may
be present including such waste from vessels, offshore structures, other receptacles
intended to receive or retain waste or other places or the combination thereof.

(y) Sewerage refers to any system or network of pipelines, ditches, channels or
conduits including pumping stations, lift stations and force mains, service connections
including other infrastructure, devices, or appliances appurtenant thereto, which
include the collection, transport, pumping and treatment of sewage to a point of
disposal.

(z) Sewers refer to pipes or such other works or structures which are built and
constructed to carry, transport, and dispose sewage.

(aa) Social inclusion refers to the process of improving the terms for
disadvantaged individuals and groups to take part in society,

(bb) Tariffs refer to such amounts which may be charged by licensees for their
water supply and sanitation services based on principles, standards, and guidelines
established by the Department of Water Resources.

(cc) Water Demand Management (WDM) refers to any method, whether
technical, economic, administrative, financial, or social that will accomplish one or more
of the following:

(1) Reduce the quantity or quality of water required to accomplish a specific task;

(2) adjust the nature of the task or the way it is undertaken so that it can be
accomplished with less water or with lower quality water;

(3) Reduce the loss in quantity or quality of water as it flows from source, through
use, to disposal;

(4) Shift the timing of use from peak to off-peak periods; and

(5) Increase the ability of the water system to continue to serve society during
times when water is in short supply.

(dd) Water Districts refer to government - owned and controlled corporations
organized under Presidential Decree No. 198, as amended, created primarily to acquire,
install, operate, maintain, and improve water supply and distribution systems for
domestic, industrial and municipal uses of residents and to provide, maintain and



operate waste water collection, treatment and disposal facilities within the boundaries
of the district.

(ce) Water pollution refers to any alteration of the physical, chemical, biological,
or radiological properties of a body of water resulting in the impairment of its purity or
quality.

"tb Water Resource refers to water under the ground or groundwater, water
above the ground such as surface water, run-offs, floods, storm water and urban
drainage, treated wastewater, water in the atmosphere or rain water, and the waters of
the sea within the territorial jurisdiction of the Philippines.

(gg) Water Resources Regions refer to the contiguous clusters of river basins
which are grouped together according to the hydrological boundaries, physiographic
features, and homogeneity in climate, whether or not they straddle different local
government units, for administrative purposes under the Department of Water
Resources,

(hh) Water Service Provider (WSP) refers to the water district, any Local
Government Unit (LGU)- run water utility, Barangay Waterworks and Sanitation
Association (BWSA), Rural Waterworks Sanitation Association (RWSA), cooperative
and private sector entity that provides water supply services to any given area,

(ii) Water supply service refers to any activity comprising Levels 1, Ht and Ill water
supply including bulk suppliers, suppliers to subdivisions, and other water service
providers,

CHAPTER I
THE DEPARTMENT OF WATER RESOURCES

SECTION 4. ‘The Department of Water Resources - There is hereby created and
established the Department of Water Resources, hereinafter referred to as. the
Department.

SECTION 5. Mandate of the Department, ~The Department shall be the primary
agency responsible for the comprehensive and integrated identification and mapping
of all water resources, planning, policy formulation, and management of the ownership,
appropriation, utilization, exploitation, development, and protection of water resources:
in the Philippines to ensure the optimal use thereof for domestic and municipal water
supply, sanitation, irrigation, hydropower, industry, navigation, flood management,
and recreation except fisheries or aquaculture. The Department shall also be the
primary agency responsible for the planning, and policy formulation towards the
attainment of universal access to safe, adequate, affordable, and sustainable water
supply, and improved sanitation services for all Filipinos. The Department shall be the
primary national agency to enforce Presidential Decree No, 1067 otherwise known as
‘The Water Code of the Philippines and Republic Act No. 9275, otherwise known as the
Philippine Clean Water Act of 2004. The Department shal! exercise the powers and
functions of the defunct Pasig River Rehabilitation Commission created under
Executive Order No. 54 Series of 1999 and abolished under Executive Order No. 93
Series of 2019, specifically the following roles that were transferred to the Manila Bay
‘Task Force and DENK through the latter EO:



(a) Update and take the lead in the overall implementation of the Pasig River
Rehabilitation Master Plan, which shall harness the Pasig River's potential for
transportation, recreation and tourism purposes while undertaking the rehabilitation
and restoration of its maritime life; and

(b) Ensure that the easements provided for in the Civil Code and other relevant
laws are enforced, especially in all the esteros and waterways that drain into the Pasig
River as well as abate the dumping of untreated industrial wastewater and sewerage
into the river, including all acts and omissions in violation of Presidential Decree (PD)
No. 984, s. 1976, as amended entitled, Providing For The Revision Of Republic Act No.
3931, Commonly Known As The Pollution Control Law, And For Other Purposes, PD
No. 274, s. 1973 entitled, Pertaining To The Preservation, Beautification, Improvement
And Gainful Utilization Of The Pasig River, Providing For The Regulation And Control
Of Pollution Of The River And Its Banks In Order To Enhance Its Development, Thereby
Maximizing Its Utilization For Socio-Economic Purposes, and other related laws.

SECTION 6. Guiding Principles. -In the pursuit of its mandate, the Department
shall be guided by the following key principles:

(a) The concept of good water governance for water security and sufficiency shall
be adopted across all levels of governance by stakeholders such as the national
government, local government, non-government organizations, private organizations,
individuals, even global societal actors, and in various sectors such as water supply,
irrigation, fisheries, hydropower, navigation, ecosystem services, flood management,
climate change, and recreation. It shall entail publicly transparent, socially accountable,
and multi-stakeholder participatory water policy planning, management, and decision-
making processes,

(b) Access to safe water supply and improved sanitation is a human right that
needs to be fulfilled and protected.

(©) Integrated Water Resource Management (IWRM) shall be adopted as the basic
framework which is the coordinated development and management of water, land, and
related resources within hydrological boundaries to optimize economic and social
welfare without compromising the sustainability of vital ecosystems. The IWRM
Framework shall include an enabling environment that utilizes proper policies, logal
instruments, and institutional frameworks for effective implementation, participatory
and collaborative water policy and management decisions, and management
instruments for efficient use of updated and accurate data, science-based decision
support systems, proper information, education, communication (IEC) programs,
assessment and allocation tools, or regulatory functions, It shall observe the mutual
accountability mechanism among stakeholders at the national, regional, and global
levels reinforcing multi -stakeholder decision-making following a framework with
specific, measurable, attainable, relevant, and timely actions.

(d) Each river basin has its unique characteristics relating to the physical, socio
cultural and other aspects, and water management shall be performed at river - basin
level, involving all the stakeholders at that particular river basis

(e) Integrated and accurate data collection and analysis and the use of scientific
decision support systems shall be undertaken in water resources management



including flood modeling and warning systems that are essential for an effective,
efficient and sustainable water resources management system,

(f) The development of water resources shall include strategies for the mitigation
of water-related hazards and climate change adaptation.

(g) Water resources and services should be provided where they are intended
and most needed so that water is fairly and sustainably managed.

(h) The proper operation and maintenance of waterworks systems resulting in
the uninterrupted and adequate supply and distribution of potable water for domestic
and other purposes, and the proper operation and maintenance of sewerage systems
which are essential services to public health and safety, are to be ensured at all times.
The State shall therefore supervise and control the establishment, operation, and
maintenance of such systems,

SECTION 7. Objectives of the Department. - The Department shall:

(a) Promote and adopt water demand management as a national policy to ensure
that water is optimized, that water efficiency and conservation become a way of life,
that the recycling and reuse of water and treated wastewater are widely practiced, that
water is properly priced to encourage efficient use and conservation and that rainwater,
flood waters, and run off-s are captured or harvested, stored and treated for future use;

(b) Prioritize and seck the immediate attainment of universal access to safe,
adequate, affordable and sustainable water supply and improved sanitation services for
all Filipinos in a manner consistent with the protection, preservation, and revival of the
quality of the country’s water resources, and to adopt all needed measures to advance
the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature.

(©) Strengthen and coordinate integrated water resources management planning
and policy making to ensure sustainable and fair allocation and efficient use of water
resources among competing uses and users;

(d) Ensure that integrated water resources management is strongly coordinated
with land use and coastal and multi-hazard planning and management;

(e) Develop sustainably, and manage water sources and water resources toward
water security, taking into consideration water, land, and related resources aimed at
increasing water dependability for different uses, optimizing economic benefits and
social welfare without compromising the sustainability of vital environmental systems;

(8 Strengthen and coordinate policy making and planning towards ensuring the
availability of water for food security and energy security, as well as towards the
protection of communities and environments against flood and other water induced
hazards including sediment hazards;

(g) Ensure that the strategy for water resources development and conservation
is participatory, and that planners, policymakers and users including community
members are involved at all levels;

{h) Develop a standardized pricing framework for water use that accounts for
environmental externalities; and

(i) Ensure that all sources of water, including surface water, groundwater,
rainwater and floodwater are identified, mapped, monitored, conserved and managed


for productive use and the resulting wastewater is managed properly, reused, and
responsibly disposed of following approved environmental standards.

SECTION 8. Powers and Functions of the Department. - The Department shall
have the following powers and functions:

1. Policymaking and Planning

(a) Ensure that Integrated Water Resources Management (IWRM) is adopted as
the strategic framework for water management policymaking and planning in the
country and coordinate the implementation, promotion, revision and enhancement of
IWRM plans;

(b) Formulate policies, strategies, and targets in coordination with other relevant
entities to meet the goals and objectives for water supply and sanitation, water quality,
irrigation, hydropower, flood control, storm water utilization, and urban drainage.
Such policies shall, among other guidelines, integrate the issues of water and sanitation,
food security, energy, environment and flood control, and climate change;

(c) Formulate and develop policies to promote universal access to safe, adequate,
affordable, and sustainable water supply, and improved sanitation services for all
Filipinos;

(d) Regularly update, every five years or as deemed necessary by the
Department, and in consultation with other agencies and stakeholders, the NWRMP
following the IWRM framework and integrate therein a national land use plan;

{e) Undertake river basin survey, inventory and appraisal of water and related
resources, and develop comprehensive basin - wide plans of storage, retardation, and
control to maximize conservation and multipurpose use of water in the basin;

(f) Conduct continuing hydrological and hydrological and hydro meteorological
surveys and studies of the country’s renewable water supply, and establish, operate,
and maintain observation station networks with a view towards formulating long -
term policies to balance the sustainability and optimal multiple use of water
resources, defining the hydrologic boundaries of basins of the existing, water supply
sources and developing or updating and implementing countrywide comprehensive
basin e master plans;

(g) Strengthen and coordinate policy making and planning for flood
management, integrated with storm water or urban drainage and appropriate retention
or retarding basins in order to harvest and reuse water, and to plan against, prevent,
and minimize the detrimental and catastrophic effects of flooding;

(h) Assist and provide the National Economic and Development Authority
(NEDA) with the required data and input from the water sector in the formulation of
the country’s short -term and long-term strategic development plans and actions, and
recommend to the NEDA Board the adoption of general policies and guidelines for
water resources development;

(i) Review, approve, and provide oversight over all water -related development
plans and programs of any agency within the context of the NWRMP, and overall
national plans and programs;

(j) Develop and implement, in coordination with other relevant agencies,
effective codes, standards, benchmarks, and reasonable guidelines to ensure the safety



of all public and private water structures in the country, and assure efficiency and
proper quality in the construction of water, sanitation, irrigation, hydropower, flood
control and drainage infrastructure;

{k) Ensure that gender equality, social inclusion, environmental protection,
climate resiliency, and disaster risk reduction are integrated into any water resource
management planning, policy making, and the design and construction of water
infrastructure;

(1) Ensure that the planning and design of water infrastructure considers the
highest efficiency and most appropriate technology and quality, in accordance with
national development objectives;

(m) Review existing guidelines appropriate for private sector participation in the
water sector and submit recommendations to the Public-Private Partnership (PPP)
Center of NEDA and other concerned agencies to promote and enable more PPPs in the
‘sector:

(n) Build a central repository of water data and effect inter - sectoral, inter-
agency, and inter-departmental coordination on all aspects of data gathering and
management for water resources development planning and compel the submission of
statistics and data on water utilization with the aim of operationalizing the integrated
approach to water resources management;

(0) Ensure the effective implementation of all the provisions of Republic Act No,
9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter Il of
Presidential Decree No. 856, otherwise known as the Code on Sanitation of the
Philippines;

(p) Promote Philippine participation in information sharing and education on
best practices in support of international efforts to achieve universal access to safe water
and improved sanitation; and the integration of water, energy, environment and food
security; and

(q) Issue and promulgate rules, regulations and guidelines as may be necessary
to implement and enforce its powers and functions under this Act.

IL, Resource Regulation

(a) Manage and conserve the country's water resources to ensure the optimal use
thereof for domestic water supply, sanitation, irrigation, hydropower, navigation, flood
control, and recreation purposes, and enhance and maintain water quality, conserve
watersheds, control water pollution, and restore the environment, without
compromising the natural ecosystem functions and services;

(b) Regulate and control the utilization, abstraction, diversion and development
of water resources, taking in consideration their equitable distribution among
competing demands and determine the standards of beneficial and priority uses of
water in times of crisis and national emergencies;

(C) Formulate, promulgate, and enforce rules and regulations for the
development and optimum use of water resources and its administration and
management, including coherent water protocols, operating rules of all existing and
future water infrastructure; general criteria, methods and standards for basic data
collection and project identification, formulation and planning, and appropriate
sanctions to be imposed for non-compliance;



(a) Regularly review regulations prescribed by any government agency
pertaining to water use, exploitation, development, and conservation or protection of
waters, water resources, and watershed or basin areas with respect to this Act;

(e) Impose fees or charges, as may be deemed necessary for water resources
conservation and protection, such as:

(1) Polluter’s Fee, which shall be based on the net waste load depending on the
wastewater charge formula pursuant to Republic Act No. 9275;

(2) Raw water price, which shall take into account, among others, the scarcity of water;
and

(3) Appropriate payment structures for environmental services:

(8) Deputize LGUs to collect the national fees or charges for resource regulation
within their respective jurisdictions;

(g) Collect, regularly update, monitor, and analyze water resources data
including climatology, hydrological and other water-related data and ensure that such
accessible by relevant and authorized users;

{h) Establish, operate, and maintain observation station networks and a
centralized water resources data center for the scientific survey and appraisal of surface
and groundwater potentials of the country, and determine the annual renewable water
available per water resources region;

(i) Maintain a database that will contain updated relevant information on water
data which will be accessible by relevant and authorized users;

(j) Develop and continuously update a computerized decision support system
that incorporates data management systems relating to acquisition and database, model
base in terms of physical design, planning and decision models, and user -friendly
interface concerning graphical and visualization tools;

(k) Conduct and promote special studies and research on water economics and
other water resources development and management issues and concerns such as
climate change, weather modification, flood monitoring and modeling, environmental
quality, and desalination; and

()) Raise public awareness through information, education and communications
programs, and build capacities for informed participation in water resources
management at the national and river-basin level.

Ill, Institutional Arrangement with Public Water Organizations

(a) Develop guidelines including rules of partnership, between and among the
Department, field offices of national government agencies, LGUs and other
stakeholders in water resource management, and facilitate the establishment of multi -
stakeholder river basin organizations (RBOs) per river basin, and strengthen and
support existing RBOs and monitor their activities;

(b) Develop materials for capacity building and training of prospective RBOs;

(c) Authorize its representatives or any deputized agent to enter any property of
public dominion with or without prior notice and consent, any private land, building
or enclave, whether inhabited or not, for the purpose of conducting hydrologic surveys
and investigations, including assessing and evaluating the conditions of water facilities
installed, and determining compliance with water laws and standards;


(A) Provide technical assistance to water users including farmers, communities,
and LGUs and other water service providers (WSP) whether directly or in coordination
with other agencies on all aspects of integrated water resources management;

{e) Respond to consumer complaints, and ensure the adequate promotion of
consumer interests;

() Deputize agents, whether from the public or private sector, to assist in the
performance of any of the powers and functions of the Department;

(g) Appoint, hire, and maintain adequate staff and personnel, advisers or
consultants with suitable qualifications and experience, as necessary, subject to existing
rules and regulations,

IV, Coordination

{a) Coordinate and integrate water resources development activities of the
country within the context of national plans and policies for social and economic
development;

{b) Coordinate with other government agencies, universities, academe and
private professional groups in all aspects of data gathering, the conduct of special
studies and research on all related aspects of water resources management and
development such as climate change,

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “National Water Act”.

SECTION 2. Declaration of Policy. - Access to water is a basic human right, All
water belongs to the State which shall govern its development and utilization for the

people.

It is hereby declared the policy of the State to ensure the provision of safe,

adequate, affordable, and sustainable water supply and improved sanitation services,
while maintaining the protection, preservation, and revival of the quality of the
country’s water resources and ecological balance.
In pursuit of this policy, this Act shall have the principal objective of ensuring and
accelerating universal access to water supply and sanitation services, in a regulatory
regime that encourages responsible private sector participation, and shall foster and
Prioritize the establishment of infrastructure and public works that adopt innovative
solutions and international best practices to address the challenges of climate change,
Further, all water and water treatment infrastructure projects are hereby declared as
projects imbued with national interest.

SECTION 3. Definition of Terms. - As used in this Act:

(a) Bulk water supplier refers to any entity, natural or juridical, whether public
or private, supplying or intending to supply large quantities of raw or treated water to
buyers who will use these for their own consumption, such as industrial companies, or
for retail distribution to consumers such as water service providers or real estate
developers managing, their own distribution network,



(6) Environmental services refer to qualitative functions of natural non-produced

assets of land, water, and air, including related ecosystems, and their biota, and which
may be categorized into three basic types:
{a) disposal services which reflect the functions of the natural environment as an
absorptive sink for residuals; (b) productive services which reflect the economic
functions of providing natural resource inputs and space for production and
consumption, and (¢) consumer or consumption services which provide for
physiological as well as recreational and related needs of human beings.

(©) Flood Control refers to methods, acts, and protocols to be observed in order
to prevent and reduce the detrimental and catastrophic effects of flood waters which
include sediment-laden or turbid flows, and hyper-concentrated flows or debris flows.

(d) Flood Risk Management (FRM) refers to such acts of defining and
determining the appropriate methods, acts, and protocols aimed at preventing and
reducing the risk of incurring loss of both life and property due to flood waters. Flood
risk management consists of a cycle of prevention, mitigation, adaptation, preparedness
and early warning, and response and recovery. The elements of FRM include:
integrating land-use planning and coastal zone management into water management;
adopting a holistic approach so that FRM is part of wider risk or multi-hazard
management of earthquakes, landslides, and storm surges; managing risk and
uncertainty as a whole so it not only mitigates hydrological uncertainties but also social,
economic and political uncertainties on account of human behavior and the cultural
dimensions of FRM.

{e) Gender Equality refers to the principle asserting the equality of men and
women and their right to enjoy equal conditions realizing their full human potentials
to contribute to and benefit from the results of development, and with the State
recognizing that all human beings are free and equal in dignity and rights.

(0 Infrastructure and public works refer only to wholly or primarily water
related projects and does not include projects that do not fall within the purview of the
objectives, power and duties of the Department of Water Resources created under this
Act.

(g) Integrated Water Resource Management (IWRM) refers to a systematic,
collaborative, and multi-stakeholder process which promotes the coordinated
development and management of water, land, and related resources within geophysical
boundaries in order to maximize the resultant cconomic and social welfare in an
equitable manner, and without compromising the sustainability of vital ecosystems.

(h) Levels of water supply refer to communal sources of water described
according to location and size of the recipient human settlement as follows:

(1) Level L or the point source is a protected well or a developed spring with an
outict but without any distribution system, generally adaptable to rural and upland
areas where houses are thinly scattered , and is a facility which usually serves an
average of 15 households.

(2) Level I or the communal faucet system or stand posts is a system composed
a of water source, a reservoir, a piped distribution network, and communal faucets
where one faucet serves 4 to 6 households and is generally suitable for rural and urban
fringe areas where houses are clustered densely to justify a simple piped system.



(3) Level III or the waterworks system or individual house connections is a
system with a water source, a reservoir, a piped distribution network and household
taps, suitable for densely populated urban areas.

(@ License refers to the Water Supply and/or Sanitation Services Operating
License that the Water Regulatory Commission is authorized to grant and issue to
service providers.

(j) Licensee refers to a service provider to whom a license is granted or issued by
the Water Regulatory Commission.

(k) Missionary Water Services refer to water supply or services to areas that have no
existing safe water supply and services due to geographic limitation or absence of
economic and market viability.

() National Water Resources Management Plan (NWRMP) refers to a policy
document that contains a framework to guide the development and management of all
the water resources in the Philippines, the general strategies and work to be pursued to
ensure the sustainability of the resource towards water security, and top-level direction
on the utilization of existing water resources in line with national development plans,
policies, and programs in accordance with the !WRM framework,

‘The NWRMP shall also include a water infrastructure development program or
all waters of the country as well as provide general guidance on how this shall be
supported within an integrated financing framework that can draw from public,
private, and international development funding sources.

(m) Net Waste Load refers to the difference of the initial waste load of the
abstracted water and the waste load of the final effluent discharge of an industry

(n) Regulatory Units refer to the offices established under Section 20 of this Act
which issue licenses authorizing the operation of Water Supply and Sanitation Services,
and provide, review, determine, fix, and approve water and sewerage tariffs, rates, and
charges that licensees may impose.

(0) River basin refers to an area of land drained by a stream or body of fixed
water and its tributaries which have a common outlet for surface run-off.

(p) River Basin Organization (RBO) refers to multi -stakeholder organizations
which plan, coordinate, and monitor activities within a river basin cluster.

(q) Sanitation refers to the provision of facilities and services for the safe
management of human excreta, from toilet to containment, and storage and treatment
onsite or conveyance, treatment and eventual safe end use or disposal, and includes the
safe management of solid waste and animal waste.

(r) Sediment management refers to control of sediment erosion and deposition
in rivers, reservoirs, and coastal zones through non-structural and structural measures
and control works,

(5) Sustainable Development Goals (SDGs) also known as the 17 Global Goals
refer to the universal call to action to end poverty, protect the planet and ensure that all
people enjoy peace and prosperity by 2030 adopted by all United Nations Member
States in 2015.

{t) Septage is the liquid and solid material pumped from a septic tank, cesspool,
or other primary treatment source.

{u) Septage Management refers to the provision of proper collection, treatment,
and disposal of septage.


(v) Service Area refers to the area covered by the water distribution system,
sewerage, and /or septage management services.

(w) Service Provider refers to any entity, natural or juridical, whether private or
public, providing or intending to provide levels I & I water supply, including bulk
water suppliers, sewerage, septage treatment, and disposal services for domestic,
residential, industrial or commercial use.

(x) Sewage refers to water borne human or animal wastes, excluding oil or oil
waste, removed from residences, buildings, institutions, and industrial and commercial
establishments together with such groundwater, surface water and storm waters as may
be present including such waste from vessels, offshore structures, other receptacles
intended to receive or retain waste or other places or the combination thereof,

{y) Sewerage refers to any system or network of pipelines, ditches, channels or
conduits including pumping stations, lift stations and force mains, service connections
including other
Infrastructure, devices, or appliances appurtenant thereto, which include the tic on, ol
etc. transport, pumping and treatment of sewage to a point of disposal.

(z) Sewers refer to pipes or such other works or structures which are built and
constructed to carry, transport, and dispose sewage.

{aa) Social inclusion refers to the process of improving the terms for
disadvantaged individuals and groups to take part in society.

(bb) Tariffs refer to such amounts which may be charged by licensees for their
water supply and sanitation services based on principles, standards, and guidelines
established by the Department of Water Resources.

(cc) Water Demand Management (WDM) refers to any method, whether
technical, economic, administrative, financial, or social that will accomplish one or more
of the following:

(1) Reduce the quantity or quality of water required to accomplish a specific task;

(2) adjust the nature of the task or the way itis undertaken so that itcan be accomplished
with less water or with lower quality water;

(3) Reduce the loss in quantity or quality of water as it flows from source, through use,
to disposal;

(4) Shift the timing of use from peak to off-peak periods; and

(5) Increase the ability of the water system to continue to serve society during times
when water is in short supply.

(dd) Water Districts refer to government - owned and controlled corporations
organized under Presidential Decree No. 198, as amended, created primarily to acquire,
install, operate, maintain, and improve water supply and distribution systems for
domestic, industrial and municipal uses of residents and to provide, maintain and
operate waste water collection, treatment and disposal facilities within the boundaries
of the district.

(cc) Water pollution refers to any alteration of the physical, chemical, biological,
or radiological properties of a body of water resulting in the impairment of its purity or
quality.

(ff) Water Resource refers to water under the ground or groundwater, water
above the ground such as surface water, run-offs, floods, storm water and urban


drainage, treated wastewater, water in the atmosphere or rain water, and the waters of
the sea within the territorial jurisdiction of the Philippines

(gg) Water Resources Regions refer to the contiguous clusters of river basins
which are grouped together according to the hydrologicat boundaries, physiographic
features, and homogeneity in climate, whether or not they straddle different local
government units, for administrative purposes under the Department of Water
Resources.

(hh) Water Service Provider (WSP) refers to the water district, any Local
Government Unit (LGU)-run water utility, Barangay Waterworks and Sanitation
Association (BWSA), Rural Waterworks Sanitation Association (RWSA), cooperative
and private sector entity that provides water supply services to any given area,

(ii) Water supply service refers to any activity comprising Levels |, II and II] water
supply including bulk suppliers, suppliers to subdivisions, and other water service
providers.

CHAPTER IT
‘THE DEPARTMENT OF WATER RESOURCES

SECTION 4. The Department of Water Resources - There is hereby created and
established the Department of Water Resources, hereinafter referred to as the
Department.

SECTION 5. Mandate of the Department. -The Department shall be the primary
agency responsible for the comprehensive and integrated identification and mapping
of all water resources, planning, policy formulation, and management of the ownership,
appropriation, utilization, exploitation, development, and protection of water resources
in the Philippines to ensure the optimal use thereof for domestic and municipal water
supply, sanitation, irrigation, hydropower, industry, navigation, flood management,
and recreation except fisheries or aquaculture. The Department shall also be the
primary agency responsible for the planning and policy formulation towards the
attainment of universal access to safe, adequate, affordable, and sustainable water
supply, and improved sanitation services for all Filipinos. The Department shall be the
primary national agency to enforce Presidential Decree No. 1067 otherwise known as
The Water Code of the Philippines and Republic Act No. 9275, otherwise known as the
Philippine Clean Water Act of 2004. The Department shall exercise the powers and
functions of the defunct Pasig River Rehabilitation Commission created under
Executive Order No. 54 Series of 1999 and abolished under Executive Order No. 93
Series of 2019, specifically the following roles that were transferred to the Manila Bay
Task Force and DENR through the latter EO:

(a) Update and take the lead in the overall implementation of the Pasig River
Rehabilitation Master Plan, which shall harness the Pasig River's potential for
transportation, recreation and tourism purposes while undertaking the rehabilitation
and restoration of its maritime life; and

(b) Ensure that the easements provided for in the Civil Code and other relevant
laws are enforced, especially in all the esteros and waterways that drain into the Pasig
River as well as abate the dumping of untreated industrial wastewater and sewerage


into the river, including all acts and omissions in violation of Presidential Decree( PD)
No. 984, 5. 1976, as amended entitled, Providing For The Revision Of Republic Act No
3931, Commonly Known As The Pollution Control Law, And For Other Purposes, PD
No. 274, s. 1973 entitled, Pertaining To The Preservation, Beautification, Improvement
And Gainful Utilization Of The Pasig River, Providing For The Regulation And Control
Of Pollution Of The River And Its Banks In Order To Enhance Its Development, Thereby
Maximizing Its Utilization For Socio-Economic Purposes, and other related laws.

SECTION 6. Guiding Principles. -In the pursuit of its mandate, the Department
shall be guided by the following key principles:

(a) The concept of good water governance for water security and sufficiency shall
be adopted across all levels of governance by stakeholders such as the national
government, local government, non-government organizations, private organizations,
individuals, even global societal actors, and in various sectors such as water supply,
irrigation, fisheries, hydropower, navigation, ecosystem services, flood management,
climate change, and recreation. It shall entail publicly transparent, socially accountable,
and multi -stakeholder participatory water policy planning, management, and decision-
making, processes,

(b) Access to safe water supply and improved sanitation is a human right that
needs to be fulfilled and protected.

(c) Integrated Water Resource Management (IWRM) shall be adopted as the basic
framework which is the coordinated development and management of water, land, and
related resources within hydrological boundaries to optimize economic and social
welfare without compromising the sustainability of vital ecosystems. The IWRM
Framework shall include an enabling environment that utilizes proper policies, legal
instruments, and institutional frameworks for effective implementation, participatory
and collaborative water policy and management decisions, and management
instruments for efficient use of updated and accurate data, science-based decision
Support systems, proper information, education, communication (IEC) programs,
assessment and allocation tools, or regulatory functions. It shall observe the mutual
accountability mechanism among stakeholders at the national, regional, and global
levels reinforcing multi stakeholder decision-making following a framework with
specific, measurable, attainable, relevant, and timely actions.

(d) Each river basin has its unique characteristics relating to the physical, socio
cultural, and other aspects, and water management shall be performed at river- basin
level, involving all the stakeholders at that particular river basin.

(e) Integrated and accurate data collection and analysis and the use of scientific
decision support systems shall be undertaken in water resources management
including flood modeling and warning systems that are essential for an effective,
efficient, and sustainable water resources management system,

(8) The development of water resources shall include strategies for the mitigation
of water-related hazards and climate change adaptation.

(g) Water resources and services should be provided where they are intended
and most needed so that water is fairly and sustainably managed.

(h) The proper operation and maintenance of waterworks systems resulting in
the uninterrupted and adequate supply and distribution of potable water for domestic


and other purposes, and the proper operation and maintenance of sewerage systems
which are essential services to public health and safety, are to be ensured at all times.
The State shall therefore supervise and control the establishment, operation, and
maintenance of such systems.

SECTION 7. Objectives of the Department. - The Department shall:

(a) Promote and adopt water demand management as a national policy to ensure
that water is optimized, that water efficiency and conservation become a way of life,
that the recycling and reuse of water and treated wastewater are widely practiced, that
water is properly priced to encourage efficient use and conservation and that rainwater,
flood waters, and run off-s are captured or harvested, stored and treated for future use;

(b) Prioritize and seek the immediate attainment of universal access to safe,
adequate, affordable and sustainable water supply and improved sanitation services for
all Filipinos in a manner consistent with the protection, preservation, and revival of the
quality of the country’s water resources, and to adopt all needed measures to advance
the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature.

{c} Strengthen and coordinate integrated water resources management planning
and policy making to ensure sustainable and fair allocation and efficient use of water
resources among competing uses and users;

(d) Ensure that integrated water resources management is strongly coordinated
with land use and coastal and multi-hazard planning and management;

{e) Develop sustainably, and manage water sources and water resources toward
water security, taking into consideration water, land, and related resources aimed at
increasing water dependability for different uses, optimizing economic benefits and
social welfare without compromising the sustainability of vital environmental systems;

(f) Strengthen and coordinate policy making and planning towards ensuring the
availability of water for food security and energy security, as well as towards the
protection of communities and environments against flood and other water induced
hazards including sediment hazards;

{g) Ensure that the strategy for water resources development and conservation
is participatory, and that planners, policymakers and users including community
members are involved at all levels;

(h) Develop a standardized pricing framework for water use that accounts for
environmental externalities; and

{i) Ensure that all sources of water, including surface water, groundwater,
rainwater and floodwater are identified, mapped, monitored, conserved and managed
for productive use and the resulting wastewater is managed properly, reused, and
responsibly disposed of following approved environmental standards.

SECTION 8. Powers and Functions of the Department. ~ The Department shall
have the following powers and functions:
{ Policymaking and Planning

(a) Ensure that Integrated Water Resources Management (IWRM) is adopted as
the strategic framework for water management policymaking and planning in the



country and coordinate the implementation, promotion, revision and enhancement of
IWRM plans;

(b) Formulate policies, strategies, and targets in coordination with other relevant
entities to meet the goals and objectives for water supply and sanitation, water quality,
irrigation, hydropower, flood control, storm water utilization, and urban drainage,
Such policies shall, among other guidelines, integrate the issues of water and sanitation,
food security, energy, environment and flood control, and climate change;

(c) Formulate and develop policies to promote universal access to safe, adequate,
affordable, and sustainable water supply, and improved sanitation services for all
Filipinos;

(a) Regularly update, every five years or as deemed necessary by the
Department, and in consultation with other agencies and stakeholders, the NWRMP
following the IWRM framework and integrate therein a national land use plan;

(e) Undertake river basin survey, inventory and appraisal of water and related
resources, and develop comprehensive basin -wide plans of storage, retardation, and
control to maximize conservation and multipurpose use of water in the basin;

(6) Conduct continuing hydrological and hydrometeorological surveys and
studies of the country’s renewable water supply, and establish, operate, and maintain
observation station networks with a view towards formulating long- term policies
to balance the sustainability and optimal multiple use of water resources, defining,
the hydrologic boundaries of basins of the existing water supply sources and
developing or updating and implementing countrywide comprehensive basin-wide
master plans;

(g) Strengthen and coordinate policy making and planning for flood
management, integrated with storm water or urban drainage and appropriate retention
or retarding basins in order to harvest and reuse water, and to plan against, prevent,
and minimize the detrimental and catastrophic effects of flooding;

(h) Assist and provide the National Economic and Development Authority
(NEDA) with the required data and input from the water sector in the formulation of
the country’s short -term and long-term strategic development plans and actions, and
recommend to the NEDA Board the adoption of general policies and guidelines for
water resources development;

{i) Review, approve, and provide oversight over all water -related development
plans and programs of any agency within the context of the NWRMP, and overall
national plans and programs;

(i) Develop and implement, in coordination with other relevant agencies,
effective codes, standards, benchmarks, and reasonable guidelines to ensure the safety
of all public and private water structures in the country, and assure efficiency and
proper quality in the construction of water, sanitation, irrigation, hydropower, flood
control and drainage infrastructure;

(k) Ensure that gender equality, social inclusion, environmental protection,
climate resiliency, and disaster risk reduction are integrated into any water resource
management planning, policymaking, and the design and construction of water
infrastructure;



(I) Ensure that the planning and design of water infrastructure considers the
highest efficiency and most appropriate technology and quality, in accordance with
national development objectives;

{m) Review existing guidelines appropriate for private sector participation in the
water sector and submit recommendations to the Public-Private Partnership (PPP)
Center of NEDA and other concerned agencies to promote and enable more PPPs in the
sector;

{n) Build a central repository of water data and effect inter - sectoral, inter-
agency, and inter-departmental coordination on all aspects of data gathering and
management for water resources development planning and compel the submission of
statistics and data on waters utilization with the aim of operationalizing the integrated
approach to water resources management;

(0) Ensure the effective implementation of all the provisions of Republic Act No.
9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter Il of
Presidential Decree No. 856, otherwise known as the Code on Sanitation of the
Philippines;

(p) Promote Philippine participation in information sharing and education on
best practices in support of international efforts to achieve universal access to safe water
and improved sanitation; and the integration of water, energy, environment and food

(q) Issue and promulgate rules, regulations and guidelines as may be necessary
to implement and enforce its powers and functions under this Act.
II, Resource Regulation

(a) Manage and conserve the country’s water resources to ensure the optimal use
thereof for domestic water supply, sanitation, irrigation, hydropower, navigation, flood
control, and recreation purposes, and enhance and maintain water quality, conserve
watersheds, control water pollution, and restore the environment, without
compromising the natural ecosystem functions and services;

(b) Regulate and control the utilization, abstraction, diversion and development
of water resources, taking in consideration their equitable distribution among,
competing demands and determine the standards of beneficial and priority uses of
water in times of crisis and national emergencies:

(c) Formulate, promulgate, and enforce rules and regulations for the
development and optimum use of water resources and its administration and
management, including coherent water protocols, operating, rules of all existing and
future water infrastructure; general criteria, methods and standards for basic data
collection and project identification, formulation and planning, and appropriate
sanctions to be imposed for non-compliance;

(a) Regularly review regulations prescribed by any government agency
pertaining to water use, exploitation, development, and conservation or protection of
waters, water resources, and watershed or basin areas with respect to this Act;

(e) Impose fees or charges, as may be deemed necessary for water resources
conservation and protection, such as:

(1) Polluter’s Fee, which shall be based on the net waste load depending on the
wastewater charge formula pursuant to Republic Act No. 9273;


(2) Raw water price, which shall take into account, among others, the scarcity of water;
and

(3) Appropriate payment structures for environmental services:

{f) Deputize LGUs to collect the national fees or charges for resource regulation within
their respective jurisdictions;

(g) Collect, regularly update, monitor, and analyze water resources data
including climatology, hydrological and other water-related data and ensure that such
data is easily accessible by relevant and authorized users;

(h) Establish, operate, and maintain observation station networks and a
centralized water resources data center for the scientific survey and appraisal of surface
and groundwater potentials of the country, and determine the annual renewable water
available per water resources region;

(i) Maintain a database that will contain updated relevant information on water data
which will be accessible by relevant and authorized users;

() Develop and continuously update a computerized decision support system
that incorporates data management systems relating to acquisition and database, model
base in terms of physical design, planning and decision models, and user -friendly
interface concerning graphical and visualization tools;

{k) Conduct and promote special studies and research on water economics and
other water resources development and management issues and concerns such as
climate change, weather modification, flood monitoring and modeling, environmental
quality, and desalination; and

(1) Raise public awareness through information, education and communications
programs, and build capacities for informed participation in water resources
management at the national and river-basin level,

II Institutional Arrangement with Public Water Organizations

(a) Develop guidelines including rules of partnership, between and among the
Department, field offices of national government agencies, LGUs and other
stakeholders in water resource management, and facilitate the establishment of multi ~
stakeholder river basin organizations (RBOs) per river basin, and strengthen and
support existing RBOs and monitor their activities;

(b) Develop materials for capacity building and training of prospective RBOs;

{c) Authorize its representatives or any deputized agent to enter any property of
public dominion with or without prior notice and consent, any private land, building
or enclave, whether inhabited or not, for the purpose of conducting hydrologic surveys
and investigations, including assessing and evaluating the conditions of water facilities
installed, and determining compliance with water laws and standards;

(d) Provide technical assistance to water users including farmers, communities,
and |.GUs and other water service providers (WSP) whether directly or in coordination
with other agencies on all aspects of integrated water resources management;

(e) Respond to consumer complaints, and ensure the adequate promotion of
consumer interests;

(f} Deputize agents, whether from the public or private sector, to assist in the
performance of any of the powers and functions of the Department;



(g) Appoint, hire, and maintain adequate staff and personnel, advisers or
consultants with suitable qualifications and experience, as necessary, subject to existing,
mules and regulations.

IV. Coordination

(a) Coordinate and integrate water resources development activities of the
country within the context of national plans and policies for social and economic
development;

(b) Coordinate with other government agencies, universities, academe and
private professional groups in all aspects of data gathering, the conduct of special
studies and research on all related aspects of water resources management and
development such as climate change, environmental quality, desalination, and the
development of operating strategies, procedures, and protocols and accompanying
computerized decision tools for major water facilities;

{c) Coordinate with the concerned and relevant agencies engaged in flood
control, flood risk management, and drought risk management; and

{d) Coordinate proactively with LGUs to ensure the integration of water
resources development plans into their comprehensive land use plans (CLUPs),
Comprehensive Development Plans (CDPs) or Provincial Physical Framework and
Development Plan (PPFDP).

V. Other Functions

{a) Create when necessary, water resource subsidiaries, instrumentalities, and
entities to engage in water transmission, water distribution, waste water treatment and
management, and sanitation in accordance with existing relevant laws.

(b) Enter into contracts, joint venture agreements or understanding, public ~
private partnerships, and memorandum of agreements or understanding, either or
foreign, relating to investment and financing water-related projects, under such terms
and conditions as the Department may deem proper and reasonable subject to existing,
laws.

{c) Exercise such other powers and functions necessary or incidental to the
effective administration and management of the country’s water resources,

SECTION 9 Secretary of the Department of Water Resources. ~
‘The authority and respons for the exercise of the mandate of the Department and
for the discharge of its powers and functions shall be vested in the Secretary of the
Department, hereinafter referred to as the Secretary, who shall:

(a) Advise the President on the promulgation of executive or administrative
orders, regulations, proclamations and other issuances relative to matters under the
jurisdiction of the Department;

{b) Fstablish the policies and standards for the operation of the Department
pursuant to the President's guidelines;

{c) Promulgate rules and regulations necessary to carry out the objectives,
policies, and functions of the Department;

(d) Exercise supervision and control over all bureaus and offices under the
Department;

(c) Supervise all attached agencies and corporations in accordance with law;

(f) Represent the Department in contracts, awards, and other similar agreements;



(g) Delegate authority for the performance of any power or function, as defined
herein to officials and employees under his direction as deemed appropriate;

(h) Actas the Chairperson of the governing board of the attached agencies of the
Department;

(i) Designate and appoint officers and employees of the Department, excluding
the Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional
Directors, in accordance with the civil service laws, rules and regulations; and

(j) Perform such other duties and responsibilities as may be provided by law.

SECTION 10. Office of the Secretary. - ‘The Office of the Secretary shall be
composed of the Secretary, Undersecretary, Assistant Secretary and the Secretary's
immediate staff.

SECTION 11. Undersecretaries. - The Secretary shall be assisted by not more
than five (5) Undersecretaries, who shall be appointed by the President upon the
recommendation of the Secretary namely: Undersecretary for Resource Regulation and
Governance, Undersecretary for Inland Waters and Water for Agriculture,
Undersecretary for Resource Development, Undersecretary for Planning and Policy
and Undersecretary for Missionary Water, Indigenous People, and Special Concerns.
‘The Secretary is hereby authorized to delineate and assign the respective functional
areas of responsibility of the Undersecretaries in accordance with the mandate and
objectives of the Department: Provided, that no Undersecretary shall be assigned
purely to administrative responsibilitics. Within their respective functional areas of
responsibility, the Undersecretaries shal

(a) Advise and assist the Secretary in the formulation and implementation of the
policies, plans, programs and projects of the Department:

(b) Supervise all the operational activities of the assigned units for which the
Undersecretary is responsible to the Secretary; and

(©) Perform such other functions deemed necessary as may be assigned or
delegated by the Secretary to promote efficiency and effectiveness in the delivery of
public services or as may be required by law: Provided, That the Undersecretary for
Planning and Policy shall in coordination with the Planning and Policy Service, be
primarily responsible for advancing current efforts in attaining the ultimate goal of
universal access to water supply and sanitation systems, and sustainable management
of water resources under the SDGs, and the integration of water, energy, environment
and food security.

SECTION 12, Assistant Secretaries. - The Secretary shall be assisted by six (6)
Assistant Secretaries to be appointed by the President of the Philippines upon the
recommendation of the Secretary: one each for Planning and Policy Service, Decision
Support System Service, Resource Regulatory Service, Comptrollership and Financial
Management Service, Legal and Legislative Service, and Administrative and Human
Resources Management Service. No person shall be appointed Secretary,
Undersecretary and Assistant Secretary of the Department unless the person is a citizen
and resident of the Philippines, of good moral character, of proven integrity,
competence and expertise i n water resource management: Provided, That at least one


(1) of the Undersecretaries and at least two (2) of the Assistant Secretaries shall be career
officers.

SECTION 13. Organizational Structure. ~ The Department shall be composed of
the following organizational units:

(a) Department Proper. - The Department shall consist of the Office of the
Secretary, the Offices of the Undersecretaries and Assistant Secretaries, the Internal
Audit Office, the Public Affairs Office, the Water Pollution Adjudication Board, the
Planning and Policy Service, Decision Support System Service, Administrative and
Iluman Resources Service, Legal and Legislative Service, Comptrollership and
Financial Management Service, Resource Regulation Service, and the Water Resources
Regional Offices.

(b) Attached agencies. - The Department shall exercise administrative
supervision over the following agencies for purposes of policy and program
coordination, monitoring, and evaluation:

(1) The Local Water Utilities Administration (LWUA), whose mandate, powers,
and functions are defined in Presidential Decree No. 198, otherwise known as the Public
Water Utilities Act of 1973, as amended, shall be transferred from the Department of
Public Works and Highways and attached to the Department. It shall continue to
primarily function as a specialized lending institution for the promotion, development,
and financing of local water utilities. In the implementation of its functions, the LWUA
shall:

(i) prescribe minimum standards and regulations in order to assure acceptable
standards of construction materials and supplies, maintenance, operation, personnel
training, accounting and fiscal practices for local water utilities;

(ii) furnish technical assistance and personnel training programs for local water
utilities;

(iii) monitor and evaluate local water standards; and

(iv) effect system integration, joint investment and operation, district annexation
and de-annexation whenever economically warranted as amended by Sec. 22,
Presidential Decree No. 768.

(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose
mandate, powers, and functions are defined under Republic Act No. 6234, as amended
entitled, An Act Creating The Metropolitan Waterworks And Sewerage System And
Dissolving The National Waterworks And Sewerage Authority; And For And For Other
Purposes, shall be transferred from the DPWH and attached to the Department :
Provided, That the MWSS shall continue to facilitate the exercise by the concessionaires:
of their responsibility; carry out accounting and notification functions; monitor, report,
and administer loans; perform related functions in connection with existing projects;
manage and dispose its retained assets; and manage and operate the Umiray-Angat
‘Transbasin Project

(3) The National Irrigation Administration (NIA), whose mandate, powers, and
functions are defined under Republic Act No, 3601 as amended by Presidential Decree
No. 552 and Presidential Decree No. 1702;

(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and
functions are defined under Republic Act No. 4850, as amended entitled, An Act



Creating The Laguna Lake Development Authority, Prescribing Its Powers, Functions
And Duties, Providing Funds Therefor, And For Other Purposes shall be transferred
from the DENR and attached to the Department, The LLDA shall continue to serve as
the lake management and development authority similar to a multi-stakeholder river
basin organization and shall ensure the implementation of the Laguna Lake Master Plan
which shall be updated by the Department to ensure alignment with the NWRMP. Any
other agency performing water resources management, conservation and protection
functions may be transferred to the Department as the President deems

(c) Offices, Functions and Personnel to be C ‘ompletely Subsumed under the
Department. - The following offices with their powers, functions, personnel, applicable
funds and appropriations, records, equipment and property shall be subsumed under
the Department:
(1) The National Water Resources Board (NWRB) with alll its divisions and sections,
whose mandate, powers and functions are provided in Presidential Decree No. 424, as
amended;
(2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and
functions are provided in Executive Order No, 310 and Executive Order No. $16, as
amended;
(3) The Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened
by virtue of DENR Administrative Order (DAO) 2011-01 to coordinate the efforts of the
fourteen (14) national agencies covered by the Mandamus Order of the Supreme Court
to rehabilitate Manila Bay;
(4) The Water Resources Management Division of the Bureau of Soils and Water
Management of the Department of Agriculture (D/A);
(5) The Water Supply and Sanitation Unit of the Department of the Interior and Local
Government (DILG); and
(6) The Water Quality Management Section of the Environmental Management Bureau
(EMB) of the DENR.

(d) Functions to be transferred to the Department. - The following functions of
the respective agencies, bureaus, and units shall be transferred to the Department:
(1) The hydrological surveys and groundwater mapping function of the Mines and
Geosciences Bureau (MGB) of the DEN!
(2) The hydrological surveys monitoring of stream flow and water data collection
function of the Bureau of Design and Bureau of Research and Standards of the DPWH;
(3) The protection and conservation of natural wetlands such as lakes, marshes, swamps
of the Biodiversity Management Bureau of the DENR; and
(4) The planning, programming, administration, monitoring, management of the
National Sewerage and Septage Management Program (NSSMP) by the DPWH.
(5) The flood management planning and sediment management function of the Flood
Control Management Cluster of the DPWH;
(6) The Water Resource Management Division and the water research functions of the
oils and Water Research Division of the Bureau of Soils and Water Management under’
the DA. All soil-related functions shall be retained under the Bureau which shall be
renamed as the Bureau of Soils.

{e) Support Services - The Department shall create the following support
services:



(1) The Planning and Policy Service shall provide the Department with the capability to
undertake water infrastructure development planning and programming, and shall
exercise the following functions:

(i) Advise the Secretary on all matters relating to water resources planning;

(ii) Assist the Undersecretary for Planning and Policy on all matters related to
the specific functions of the position;

(iii) Formulate strategies and priorities for water resources management and
developmentconsistent with national development objectives, and initiate or undertake
relevant surveys for development planning;

(iv) Develop and regularly update a comprehensive and integrated National
Water Resources Management Plan and ensure its integration into existing land use
plans;

(v) Coordinate river-basin planning following the integrated water resources
management framework and the river-basin approach;

(vi) Formulate or update existing River Basin Master or Comprehensive Plans
which includes all aspects of water management and development such as water
supply and sanitation, irrigation, flood control and storm water or urban drainage,
drought risk management, water resource development systems and other public water
works projects, including phasing of implementation;

(vii) Identify, based on the river basin master plan, priority packages for water
infrastructure development per river basin, including, water supply, sanitation,
irrigation, flood control and storm water or urban drainage, drought risk management,
water resource development systems and other public works projects, package project
proposals for funding and prioritize project implementation and the allocation of funds
and other resources and undertake or supervise and evaluate the conduct of feasibility
studies and project preparation thereof;

(viii) Evaluate and appraise all regional and inter-regional infrastructure water
development plans and programs as to their feasibility and consistency with approved
strategies and medium and long -term plans;

(ix) Gather, analyze, and organize needed statistical data and information;

(x) Provide technical assistance related to its functions to the other services,
bureau and the regional offices as needed;

(xi) Conduct hydrological and hydraulic surveys and assessments of surface
waters;

(xii) Develop general criteria and standards on project investigation,
formulation, planning;

(xiii) Develop guidelines and standards on social inclusion in water resources
management and ensure policies, programs and plans are compliant with the gender
and development framework of the government;

(xiv) Coordinate closely with PAGASA for rainfall and other climate data which
shall be considered in the planning for water resources development and management
and for various water infrastructure; and

(xv) Perform such functions and activities, as may be mandated by law, which
are necessary for the effective attainment of the abovementioned objectives,

(2) The Decision Support System Service shall provide the Department with water
resource management tools and computerized decision support system that


incorporates a data management system relating to acquisition and database and model
base in terms of physical design, planning and decision models including services
related to networking, data management, and information and knowledge or learning
management systems for administrative and non-technical support It shall provide the
Secretary timely reports on the status of various Department projects and activities. For
this purpose, it shall exercise the following functions:

(i) Provide the Secretary the necessary data and processed information to aid in
policy and management decisions under the mandate of the Department;

(ii) Publish available real-time raw water data as well as verified or validated
water data in print or electronic form using latest internet technology;

(iii) Conduct and publish in print and/or electronic form, standard data analysis
such as basic statistical analysis, trend analysis, analysis of runs, and cluster analysis;

(iv) Develop and continuously update water resource management,
computerized decision support systems (DSS) that incorporate data management
systems relating to acquisition and database, model base in terms of physical, design,
planning and decision models, and user-friendly interface such as graphical and
visualization tools.

The DSS is composed of: 1) a measurement or data acquisition system; 2)
information or database management system; 3) analytical and numerical models for
design, planning, decision or evaluation purposes, and 4) a user -friendly interface
which includes graphical interface or visualization tools.

(v) Develop and maintain specific models to include the followi
a) long-term climatologic and weather forecasting model;

b) watershed models and river-flood plain models;

c) groundwater models and coupled to surface water models;

4) flood forecasting model for major rivers;

©) optimization-simulation management models for watershed conservation,
conjunctive surface and groundwater use, irrigation scheduling, normal and emergency
operations of multi-purpose reservoirs; and

f) water quality and ecological models.

(vi) Develop and administer the management information system and
knowledge systems of the Department to:

a) Retrieve, process, and monitor information on all projects and activities in the web
portal;

b) Conduct and apply systems and process engineering, software development,
software configuration management;

¢) Develop and manage its corporate database, unified database for water industry, data
warehouse, other water information resources, library services and document
management and archiving services;

d) Develop and manage its Information and Communications Technology (ICT)
infrastructure and ICT related-services including computer networking and voice
communications services and data exchange, and

e) Manage the literacy and training services of the Department on various ICT and,
Knowledge Management (KM) tools and applications, including information and
knowledge management.



(vii) Perform such other related functions and activities which are necessary for

the effective administration of the management information and knowledge systems of
the Department.
(3) The Administrative and Human Resource Service shall provide the Department with
services relating to human resources development, personnel records, facilities
maintenance, medical and dental, security, property and procurement s, and shall
exercise the following functions:

(i) Advise the Secretary on all matters relating to internal administration and
human resources management;

(ii) Prepare and implement an integrated personne! development plan that shall
include provisions for merit promotions, performance evaluation, job rotation,
incentive awards systems, and health and welfare services;

(iii) Provide services related to human resource training, education and
development including manpower, career planning and forecasting, and development
cof indigenous training materials;

(iv) Develop, establish, and maintain an efficient and cost - effective property
procurement system and facilities and co din orate or otherwise interface with relevant
agencies, whether government or private, for the of developing or upgrading the
system; and effective security system covering, among others, personnel, physical
installations, facilities, equipment, documents and materials including the conduct of
security investigations;

(vi) Coordinate with the appropriate government agencies for a more efficient
conduct of administrative processes;

(vii) Develop, establish, and maintain an efficient records system;

(viii) Provide assistance in its area of specialization to the Department Proper,
bureaus and regional and water district offices and, when requested to the government
agencies and corporations attached to the Department; and

(ix) Perform such other related functions and activities which are necessary for
the effective management of the resources of the Department, including its, resources.
(4) The Legal and Legislative Research Service shall provide the Department with
services on such legal affaits as contract letting and litigation, legal and le;
research, complaints and investigation, legal counselling and other matters of law
shall exercise the following functions:

(i) Advise the Secretary on all matters relating to legal and legislative affairs;

(ii) Prepare Department contracts and legal instruments, review and interpret all
contracts and agreements entered into by the Department and evaluate all legal
proposals;

(iii) Conduct administrative investigation and the review of administrative
charges against officers and employees of the Department;

(iv) Exercise functional jurisdiction over the legal staffs of Regional Offices;

(v) Provide legal assistance to the Department Proper, the bureaus and regional
offices and when requested, the attached corporations;

(vi) Develop and prepare the Department's Legislative Agenda, recommend
presidential certification of the urgency of priority water bills, and other water-related
legislation;

and



(vii) Coordinate and maintain linkages between and among the various offices,
bureaus, regional offices and attached agencies to the Department along with other
government agencies on policy matters affecting the Department's mandate in relation
to legislation;

(viii) Perform liaison and networking, activities in relation to the enactment of
related laws relating to water resources issues in legislative policymaking bodies such
as the Senate of the Philippines, the House of Representatives, and the various
Sanggunians;

(ix) Monitor the progress of the Department's priority or certified bills to ensure
their passage; and

(x) Perform such functions and activities, as may be mandated by law, which are

necessary for the effective performance of the abovementioned objectives.
(5) The Comptrollership and Financial Management Service shall provide the
Department with coordinated services relating to financial systems and procedures,
budget, cash, accounting and ail financial housekeeping matters, and shall exercise the
following functions:

(i) Advise the Secretary on alll matters relating to the accounting of government
expenditures and receipts, budgeting and cash management, project finances and
financial systems and procedures;

(ii) Prepare budget proposals and pursue formal budget authorizations,
undertake budget execution, and prepare and submit all appropriate reports to the
proper offices;

(iii) Develop and maintain accounting, financial and assets management
systems, procedures and practices in the Department Proper, Bureaus and Regional
Offices;

{iv) Review and appraise systems and procedures, organizational structure,
assets management practices, accounting, and other records, reports, and performance
standards such as budgets and standard costs of the Department, bureaus, and regional
offices;

(v) Provide assistance in its area of specialization to any unit of the Department
and, when requested, to government corporations and councils attached to the
Department: and

(vi) Perform such other related functions and activities which are necessary for
the effective financial management of the Department,

(6) The Resource Regulation Service shall provide the Department with services for the
effective regulation of all water - related services and activities and shall exercise the
following functions:

{i} Advise the Secretary on all matters relating to resource regulations;

(ii) Determine, grant and regulate water rights for the appropriate, optimal and
sustainable use of surface and ground water;

(iii) Determine and evaluate waterworks and sewerage licenses, and submit e
valuation results to the Water Regulatory Commission for the latter's consideration in
granting of licenses;

(iv) Investigate violations of the water rights and the Water Code, and impose
the appropriate sanctions in accordance with existing laws, rules and regulations as
well as future rules and regulations which the Department shall promulgate;


(v) Adjudicate water use conflicts; and

(vi) Perform such other related functions and activities which are necessary for
the effective regulation of water-related services,

(7) the Internal Audit Service shall regularly conduct a comprehensive audit of various
Department activities and shall exercise the following functions:

{i) Advise the Secretary on all matters relating to management control and
operations aud

{ii) Conduct a performance audit of the management and operations of the
Department, its activities, the performance of all units, and determine the degree of
compliance of all operating units with established objectives, policies, standards,
methods and procedures, government regulations and contractual obligations of the
Department;

{iii} Review and appraise systems and procedures, organizational structure,
assets management practices, accounting and other records, and performance
standards such as budgets and standard costs of the Department Proper, bureaus and
regional offices;

{iv) Analyze and evaluate management deficiencies and recommend realistic courses of
action; and

{v) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

(8) The Public Affairs Service shall enhance relations all stakeholders
including the media, for the effective dissemination of information relating to water-
related issues, including important announcements on policies and activities of the
department that is of interest to the general public. It shall ensure that women, men,
elderly, and people with disabilities shall be consulted, organized and take active part
in all aspects of water resources development and management activities. It shall also
lead the planning,

(i) Public Awareness and organizing of special events, and shall exercise the
following functions:

a) Advise the Secretary on matters pertaining to public affairs;

b) Develop and supervise the of — comprehensible communications programs on
relevant policies, programs and plans of the Department;

c) Produce and supervise the dissemination of communication materials in line with the
priorities of the Department and national government public information programs;

d) Conduct public opinion and attitude surveys to identify the interests and concerns
of the stakeholders of the Department;

e) Establish policies on the presentation and publication of the content of the
communication materials for dissemination to print and broadcast media;

f) Establish and maintain linkages with the tri-media and a presence in social media;
g) Coordinate the conduct of interviews and news conferences;

h) Make public announcements on matters relating to the work and activities of the
Department through the print and broadcast media, either through press releases or
live interviews;

i) Coordinate with various Department units, concerned government agencies, media
and other stakeholders on matters related to the above- enumerated functions; and



)) Coordinate with the appropriate national government agencies involved in public
information affairs.

(ii) Promote Participation
a) Conduct public consultations and discussions;

b) Develop and disseminate relevant and appropriate materials and programs for
public information and education, as well as advocacy campaign;

¢) Conduct seminars and workshops involving the LGUs and the general public on
current water issues and problems; and

d) Conduct capability building seminars of various stakeholders to promote
meaningful participation in the Department's policy making, planning, development
and implementation of various programs and projects.

(ili) Special Events
a) Coordinate the organization and promotion of special events and water exhibits;

b) Act as the focal office for all water related events; and

c) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

(§ Bureaus, - The Department shall create bureau s which shall each be headed by a
Bureau Director. The Bureau Director shall be responsible for the efficient and effective
discharge of the functions of the Bureau concerned. The Bureau Director shall be
assisted by one Assistant Director.

(1) Bureau of Flood Control and Drainage shall plan and design flood control and
drainage structures and facilities in accordance with technical standards,
guidelines and manuals. For this purpose, it shall have the following duties and
responsibilities:

(i) Formulate policy, strategies and programs on flood risk management in the
context of integrated flood management (IFM) which integrates water, land, coastal
zone and multi-hazard management. In integrating land use planning and water
management, the Department shall harmonize and synthesize plans to enable the
sharing of information between land-use planning and water management authorities.
In this regard, a holistic approach shall be adopted by making the IFM a part of a wider
risk or multi-hazard management system that includes earthquakes, landslides, fires,
tsunami, and other calamities of the same gravity or nature;

(ii) Integrate climate change and disaster risk reduction and management in
policies and plans;

(iii) Prepare master plans of flood management and drainage in river basins in
coordination with the concerned water resources region and river basin organizations;
(iv) Prepare master plans for urban drainage in cities and municipalities;

(v) Prepare feasibility studies of recommended measures in the master plans;

(vi) Plan and design structural measures for flood control and drainage;

(vii) Implement and collaborate with concerned agencies on the formulation and
adoption of non-structural measures for flood control and drainage;

(viii) Patrol and investigate rivers, and monitor stream flow’;

(ix) Conduct post-disaster investigation and evaluation and damage assessment
of flood infrastructures after extreme events;

(x) Conduct research and development on water and sediment-related disasters;


(xi) Develop design guidelines, criteria, and standards on flood control and
drainage structures;

(xii) Provide technical assistance to other agencies, LGUs, and other
stakeholders;

(xiti) Advise the Secretary on declaring flood control areas and recommend
guidelines for flood plain management plans in these areas; and

(xiv) Perform such related activities which are necessary for the effective

performance of its functions.
(2) Bureau of Water Quality Management shall supervise and exercise control over all
aspects of water quality management to ensure the sustainability of the country’s water
resources and the protection of the environment. It should take into account proper and
integrated treatment of freshwater and wastewater within the whole process. For this
purpose, the Bureau shall exercise the following functions:

(i) Establish water quality guidelines for freshwater and coastal or marine
waters as basis for classifying water bodies in the country. Specifically, develop water
quality indices or composite metrics to measure the quality status and health of natural
‘water bodies in relation to ecological integrity and function;

{ii) Establish effluent standards for point discharges to receiving bodies of water;

(iii) Establish internationally accepted procedures for sampling and analysis;

{iv) Prepare an integrated water quality management framework;

{v) Prepare the ten -year water quality management plans for each water quality
management area as part of the River Basin Master Plans and in support of the
NWRMP;

(vi) Classify groundwater sources and prepare a national groundwater
vulnerability map;

(vii) Classify or reclassify all water bodies according to their beneficial usages
using the established water quality guidelines established;

(viii) Issue permits, clearances, and similar instruments pursuant to the Clean
Water Act of 2004;

(ix) Collect the wastewater discharge fees for all permittees;

(x) Monitor the compliance of water discharge permittees with the effluent
standards;

(xi) Regularly monitor the water quality of major water bodies in the country and
analyze the data to identify possible sources of pollution:

(xii) Issue notices af violations and/or cease and desist orders for those found in
violation;

(xiii) File the needed cases against violators with the Water Pollution
Adjudication Board (WPAB);

(xiv) Serve as secretariat of the WPAB; and

(xv) Perform such functions and activities, as may be mandated by law, which
are necessary for the effective performance of the abovementioned objectives.

(Q) A Water Resources Regional Office (WRRO) shall be organized per water resources
region and shall be responsible for implementing the mandates, powers and duties of
the Department at the field level, except for policymaking which will be vested solely
in the Department. The formulation of the master plan for the nearby river basins such



as the Pasig-Marikina-Laguna Lake-Cavite, shall be the responsibility of the
Department. Fach WRRO shall perform the following duties and responsibilities:

(i) Formulate or update and coordinate the river basin master plans for river
basins within its jurisdictions ensuring consistency with the National Water Resources
Management Framework Plan;

(ii) Advocate and strongly support the creation and functioning of multi-
stakeholder river basin organizations (RBOs) and serve as the secretariat of the said
RBOs;

(iii) Undertake and evaluate the planning, design, and work supervision
functions of the Department for the water infrastructures within the region;

(iv) Ensure the implementation of laws, policies, programs, rules and regulations
regarding the abovementioned infrastructure as well as public and private physical
structures;

(v) Provide technical assistance related to the water -related functions of other
agencies within the region especially the local government;

(vi) Coordinate with other departments, agencies, institutions and organizations,
especially local government units within the region in the planning and implementation
of the river basin master plans;

(vii) Conduct consultations with the local communities, take appropriate
measures to ensure that the services of the Department are responsive, and recommend
such appropriate actions as may be necessary; and

(viit) Perform such functions and activities, as may be mandated by law, which
are necessary for the effective performance of the abovementioned objectives.

The Department shail retain existing Project Management Offices as may be
required, which shall be under the supervision and control of the appropriate Water
Resources Regional Office unless otherwise determined by the Secretary for reasons of
supra - regional scope, magnitude and multi-functional coverage.

Each Water Resources Regional Office shall be headed by a Water Resources
Regional Director who shall be responsible for efficiently and effectively carrying out
the duties and responsibilities of the Office. Towards this end, the Water Resources
Regional Director shall exercise functional and administrative supervision over all units
within the region and is authorized to commit resources and assign personnel to
integrated regional water resources management, water supply and _ sanitation
management, and flood control and flood risk management initiatives. The Water
Resources Regional Director shall also perform such other related duties and
responsibilities as may be assigned or delegated by the Secretary or as may be required
by law, The Water Resources Regional Director shall be assisted by two (2) Assistant
Water Resources Regional Office Directors who shall exercise supe over (1) the
planning, project design and evaluation function and (2) technical assistance to the
River Basin Organizations within the water resources region.

SECTION 14. Water Pollution Adjudication Board. - There is hereby created a
Water Pollution Adjudication Board under the Office of the Secretary. The Board shall
be composed of the Secretary as Chairperson, two (2) Undersecretaries as may be
designated by the Secretary, the Director of Water Quality Management Bureau, and


three (3) other representatives from other stakeholders to be designated by the Secretary
as members,

The Board shall assume the powers and functions of the National Pollution
Control Commission with respect to the adjudication of water pollution cases under
Republic Act No. 3931 entitled, An Act Creating The National Water And Air Pollution
Control Commission, Presidential Decree 984 entitled Providing For The Revision OF
Republic Act No. 3931, Commonly Known as the Pollution Control Law, And For Other
Purposes, particularly with respect to Section 6 letters e, f, g, j, k and Republic Act No.
9275, The Bureau of Water Quality Management shall serve as the Secretariat of the
Board, These powers and functions may be delegated to the fivld officers of the
Department in accordance with rules and regulations to be promulgated by the Board.

CHAPTER HL
INTERDEPARTMENTAL RELATIONS AND INSTITUTIONAL
ARRANGEMENTS OF THE DEPARTMENT

SECTION 15. Interface and Institutional Arrangements with Other Agencies.

(a) The Department of Health (DOH) shall continue to have primary authority
and responsibility for setting and enforcing drinking water quality standards. The
Department shall coordinate with the DOH in this aspect, and shall ensure consistency
of standards and targets as well as the compliance of permittees with mandated
standards;

(b) The Department of Environment and Natural Resources (DENR) shall
continue to have primary authority and responsibility for protecting the environment
and managing the country’s watersheds;

(©) The Department of Energy (DOE) and the National Power Corporation (NPC)
shall continue to have primary authority and responsibility for establishing and
‘operating hydropower plants, but shall ensure that hydropower plant development
plans are consistent with the National Water Development and Management Plan;

(d) The Department shall coordinate with the DA to ensure agricultural
development that reduces long-term pollution for surface water and groundwater, and
agricultural and industrial economic development that employs water efficiency, water
recycling or reuse, and the appropriate treatment of wastewater;

(e) The Department shall coordinate with the National Disaster Risk Reduction
Management Council (NDRRMC) to ensure that its plans and designs for flood control,
flood risk management and drought risk management are aligned with the objectives
and plans of the Department;

(6 The Department shall coordinate with Climate Change Commission (CCC),
Philippine Atmospheric, Geophysical and Astronomical Services Administration
(PAGASA and) , National Mapping and Resource Information Authority (NAMRIA)
for scientific studies, integrated surveys, mapping, charting, and decision support
systems

(g) The Department shall coordinate with the Department of Tourism (DOT) on
recreational use of water resources;


(h) The Department shall coordinate with the Philippine Reclamation Authority
and economic zone authorities on water resources development and water
requirements within reclamation areas and economic zones, respectively; and

(i) The Department shall coordinate with relevant government agencies, in cloud
calling government units (LGUs), with respect to development projects and shall
ensure cross-cutting collaboration between and among all water subsectors and
facilitate inter- agency subsector coordination, strategic development, planning,
monitoring and provision of technical, institutional and financial capacity building
support to their different stakeholders at the water subsector level

SECTION 16. National Water Sector Policy Board. - The National Water Sector
Policy Board (NWSPB) shall be created and shall be headed by the Secretary of the
Department of Water Resources with the Secretary of the National Economic and
Development Authority as the Vice Chairperson, and the Secretaries of the — DOH,
DILG, DOE, DA, Department of Social Welfare and Development; DPWH;
Department of Budget and Management (DBM); Office of the President, and DENR,
and National Commission on Indigenous Peoples as members. The Department shall
provide personnel to serve as Secretariat to the Board.

SECTION 17. Powers and Functions of the National Water Sector Policy Board
- The NWSPB shall perform policymaking, coordination, integration, supervision,
monitoring and evaluation functions, and shall have the following responsibilities:

(a) Approve the NWRMP which shall serve as a principal guide to water
management efforts in the country and shall be reviewed every five (5) -years interval,
or as may be deemed necessary, in order to ensure its relevance to the times;

(b) Provide overall policy direction and recommend policies on water resources
requiring Presidential decision;

(c) Advise the President on the status of water management and supply,
recommend to the President the declaration of a state calamity in areas affected by water
supply, and submit proposals to restore normalcy in the affected areas;

{d) Ensure a multi-stakeholder participation in the development, updating, and
sharing of information system as policy, planning and decision-making tools consistent
with IWRM,

SECTION 18, ‘lransfer of Rights and Obligations. - The Department shall, by
virtue of this Act, be subrogated to all the rights and assume all the obligations of the
government agencies and units whose powers and functions have been subsumed,
absorbed, transferred or attached to the Department accordance with the rules and
regulations of the Commission on Audit, and the Civil Service Commission, and other
applicable laws. The transfer of powers and functions as herein provided shall take
effect within six (6) months of the affectivity of this Act. As such, all affected agencies,
offices, units shall continue to function under their present mandates.



CHAPTER IV
WATER REGULATORY COMMISSION

SECTION 19. Water Regulatory Commission, - There is hereby created and
established as an independent, quasi-judicial regulatory body to be known as the Water
Regulatory Commission, hereinafter referred to as the Commission, which shall be
organized within one hundred twenty (120) days after the effectivity of this Act. The
Commission shall be placed under the administrative supervision of the Department as
an attached agency. The Commission shall have a Board of Comunissioners, and shall
be vested with powers and functions, as conferred and set forth hereunder.

SECTION 20, The Regulatory Units, - The regulatory units of the Commission
shall be composed of the central regulatory unit and the regional regulatory units. ‘The
economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, PEZA,
and TIEZA are hereby transferred to the Commission, and shall collectively comprise
its central regulatory unit for water supply and sanitation services that; (a) provide
services to more than one province; and (b) ate owned, operated and/or maintained by
special economic zones and Metro Manila concessionaires.

The regional regulatory units shall be established by the Commission in
accordance with this Act and the rules, regulations, guidelines, and standards that the
Commission shall issue.

SECTION 21. Powers and Functions of the Commission. ~ The overall authority
and powers of the Commission shall cover and apply to all service providers, whether
private or public, providing or intending to provide levels II & Ill water supply,
including suppliers to subdivisions and / or other service providers, sewerage, and/or
septage treatment and disposal services for domestic, residential, institutional,
industrial or commercial use. The Commission shall exercise the following powers and
functions:

(a) Issue and promulgate rules, regulations and guidelines as may be necessary
to implement and enforce its powers and functions under this Act;

{b) Promulgate and enforce just and reasonable technical standards,
classifications and measurements of service;

(o) Establish rules and regulations to monitor, avoid, and provide remedies for
any market power abuse or anti-competitive or discriminatory act or behavior by or
against any participant in the water supply and sanitation sector, Upon finding that a
market participant has engaged in, or has fallen victim to such act or behavior, the
Commission shall act to stop or redress the same, Such remedies may, without
limitation, include the imposition of price controls, issuance of injunctions, requirement
of divestment or disgorgement of excess profits, invalidation of contracts and
imposition of fines and penalties pursuant to this Act.

(a) Adopt and require that books, records, and accounts be kept and maintained
in accordance With the prescribed uniform accounting system;

(e) Fix and determine proper and adequate rates of depreciation of properties
and equipment used in water supply and sanitation services;


(f) Impose and collect annual levies determined as a percentage of gross revenue
accruing in relation to the licensed activities, and reasonable fees and surcharges as may
be necessary for achieving the purposes, powers and functions of the Commission;

(g) Require the submission reports of finances and operations, verified under
oaths by the owner or president and secretary of the board of the licensee;

(h) Determine and require the monitoring and submission of such data, statistics
and other information from the regulatory units and any or all licensees as may be
necessary for the effective and efficient exercise of its duties, functions, powers and
responsibilities.

(i) Investigate, motu propio or upon a written complaint, any matter concerning
the operation of the service and issues on price manipulation and anti-competitive
behavior;

() Impose penalties and fines against any licensee or against its owners,
directors, officers, agents or representatives for any violation of this Actor of the license,
order, rule regulation or requirement issued by the Commission;

(k) Require any licensee to pay the actual expenses incurred by the Commission
in any investigation if it shall be found that a licensee violated any provision of this Act
or of the license, order, rule regulation or requirement issued by the Commission;

() Advise, apprise and coordinate with other relevant agencies of the national or
local government on any matter relating to water supply and sanitation services;

{m) Deputize agents, whether from the public or private sector, to assist in the
performance of any of the powers and functions of the Commission;

(n) Appoint an interim or temporary management committee upon appeal and
after due hearing, to ensure continuity of service in case a licensee fails to meet
conditions of the license and the concerned Regulatory Unit fails or refuses to appoint
an interim management conumittee as provided in the following section.

(0) Appoint, hire and maintain adequate staff and personnel, advisers, or
consultants, with suitable qualifications and experience, as necessary;

(p) Exercise original and exclusive jurisdiction over all cases contesting rates,
fees, fines and penalties imposed by the regulatory units in the exercise of their powers,
functions and responsibilities, as provided under this Act, and over all cases involving
disputes between and among participants or stakeholders in the water supply and
sanitation services; and

(q) Such other incidental powers and functions as may be necessary to attain the
objectives of this Act.

SEC.TION 22. Powers and Functions of the Regulatory Units, - The regulatory
units of the Commission shall have the following powers and functions:

(a) Issue licenses authorizing the operation of water supply and sanitation
services in any specified area or areas within the Philippines.

(b) Impose fines, charges and other penalties upon any provider and/or its
officers and stockholders who shall fail or refuse to register or obtain a license prior to
‘operation or commencement of business, as provided hereunder.

(c) Review, determine, fix, and approve, consistent with the rules, guidelines,
procedures and methodologies which the Commission shall provide, proposed water



and sewerage and septage management tariffs, rates and charges that licensees may
impose upon their consumers;

(d) Appraise and value property and equipment used by licensees in providing
water supply and sanitation services.

(e) Enforce technical, financial, and other performance standards set by the
Commission for licensees or utilities;

(6 Respond to consumer complaints and ensure the adequate promotion of
consumer interests and investigate motu propio price manipulation and anti-
competitive behavior;

(g) Investigate accidents directly or indirectly arising from or connected with the
maintenance or operation of the service, and make such order or recommendation as
the public interest may warrant;

(h) Require the review and/or approval of contracts or agreements that may
impact on the tariff and rates of service provision entered into by service providers upon
petition motu propio where in its determination public interest so dictates;

(i) Require the submission of reports, plans, and other documents that define the
performance targets of the licensees or utilities, and regular accomplishment reports;

() Impose and collect annual levies determined as a percentage of gross revenue
accruing in relation to the licensed activities, and reasonable fees and surcharges as may
be necessary for achieving the purposes, powers, and functions of the regulator;

(k) Conduct benchmarking and monitor the performance of licensees or utilities
under their jurisdiction, and publish reports detailing the results thereof, as may be
necessary or required by the Commission;

() Amend, modify, suspend, or revoke any license issued by them, after due
notice and hearing, on any of the following grounds:

(1) when the facts and circumstances on the strength of which the license was issued
have been materially misrepresented or have materially changed;

(2) where the licensee has failed to meet or comply with terms, conditions, and
performance targets, including but not limited to service expansion, that may have been
set in the license;

(3) where the licensee is found to be manifestly inefficient in the operation of or
provision of water supply and sanitation services in its area; or

(4) when the licensee thereof has violated or willfully refused to comply with any order,
rule or regulation of the Commission or any provision of this Act;

(m) Appoint an interim management committee to ensure continuity of service
in case a licensee fails to meet the conditions of the license; and

{n) Submit performance plans and reports as required by the Commission.

SECTION 23. Composition of the Water Regulatory Commission. -
{a) The Commission shall be a collegial body composed of five (5) full-time members
consisting of a Chairperson and four (4) members, who shall all be appointed by the
President of the Philippines. All members of the Commission must be citizens and
residents of the Philippines, at least thirty five (35) years of age, and of good moral
character, of recognized integrity and competence in the field of law, business,
commerce, finance, accounting or public administration, water or utility economics,
management, physical or engincering services, hydrology and other related services,


with at least three (3) years of actual and distinguished experience in their respective
fields of expertise: Provided, That out of the four (4) members of the Commission, at
least one (1) shall be a member of the Philippine Bar with at least ten (10) years of
experience in the active practice of law, and at least one (1) shall be a certified public
accountant with at least ten {10) years of experience in active practice.

(b) The term of office of each member of the Commission shall be seven (7) years:
provided, That among the members first appointed, the Chairperson shall serve for a
period of seven (7) years, two (2) members shall serve for five (3) years and the other
two (2) members shall serve for three (3) years: Provided further, That any member
whose term has expired as specified herein shall serve as such until a successor shall
have been appointed and quali Provided furthermore, [hat any appointment to fill
a vacancy in the Commission arising from death, removal, retirement or resignation
shall be made only for the unexpired term: Provided, finally, That in no case shall any
member serve for more than seven (7) years in the Commission.

{c) The Commission shall meet as often as may be necessary on such day or days as the
Chairperson may fix. The presence of at least three (3) members of the Commission shall
constitute a quorum, which shall be necessary for the transaction of any business, The
affirmative vote of majority of the members of the Commission where a quorum is
present shall be necessary for the adoption of any order, resolution, decisions, or other
act of the Commission in the exercise of its quasi -judicial functions; Provided, That in
promulgating rules, regulations, guidelines and in exercising i its quasi-legislative
functions, an affirmative vote of three (3) members shall be required.

(d) The Chairperson of the Commission shall exercise general executive control and
supervision over the Commission and its members, staff and personnel, agents and
representatives. Within three (3) months from the creation of the Commission and the
appointment of all Members of the Commission, the Chairperson shall determine and
establish the organizational structure and plantilla positions necessary to carry out the
powers and functions of the Commission, including those of the central and provincial
regulatory units subject to the review and approval of the DBM. The plantilla positions
of the Commission shall be filled by regular appointment in accordance with Civil
Service laws, rales, and regulations. Members of the Commission shall enjoy security
of tenure and shall not be suspended or removed from office except for just cause as
specified by law.

{e) The Chairperson and members of the Commission or any of their relatives within
the fourth civil degree of consanguinity or affinity, legitimate or common law, shall be
prohibited from holding any interest whatsoever, either as investor, stockholder, officer
or director, in any company or entity engaged in provision of water supply and
distribution, septage management and sewerage services and must, therefore, divest
through sale or legal disposition of any and all interests in the water sector upon
assumption to office.

SECTION 24. Secretariat of the Commission. - he Commission shall establish
a Secretariat which shall provide the Commission with technical and support services
including the following:
(a) Provide the necessary technical inputs and secretariat support to the Commission to
facilitate the conduct of its functions;


(b) Coordinate with Regulatory Units to ensure proper implementation of the rules,
regulations and guidelines promulgated by the Commission;

{© Monitor and assess activities of the Regulatory Unit vis- a- vis their respective annual
performance plans and targets;

(@) Maintain a database on the water supply and sanitation subsector; and

{e) Coordinate with other relevant agencies of the national or local government on any
matter relating to water supply and sanitation.

SECTION 25. Executive Director. - The Commission shall appoint an Executive
Director who shall head the Commission Secretariat, keep and maintain the official
records of the Commission, render a report on the proceedings of the Commission, and
administer oaths in all matters falling within the jurisdiction of the Commission.

‘The Executive Director shall be responsible for the effective implementation of
the policies, plans, programs, rules, regulations and dircctives of the Commission;
coordinate and supervise the activities of the different operating units under the
Commission; and perform such functions as may be assigned by the Chairperson
and/or other members of the Commission.

SECTION 26. Compensation and Other Emoluments. - The compensation of the
members of the Commission and its staff shall conform to provisions of Republic Act
No. 6758 as amended, otherwise known as the Compensation and Position
Classification Act of 1989.

CHAPTER V
REGISTRATION AND LICENSING

SECTION 27. Registration and Licensing of All Water Supply and Sanitation
Services. - All water supply and sanitation service providers, including bulk water
suppliers and those providing services to subdivisions and other service providers,
shall register with the Commission and, subject to such rules, guidelines, procedures
and other issuances of the Commission, obtain a license to operate from the appropriate
regulatory units.

The Commission shall ensure that the grant and revocation of licenses are carried.
out faitly, transparently, and without discrimination. Issuances of the Commission shall
specify, among others, the qualifications, requirements, and procedure for the grant and
revocation of licenses including the standards and performance targets that shall
continuously be complied with to keep the licenses valid.

Unless otherwise provided in this Act or by the Commission, no public water
supply and sanitation service provider shall commence or conduct the business of
providing water supply and sanitation services without first obtaining a license.

Concession agreements and other contracts for water supply provision and
water Sanitation and treatment services currently existing shall remain valid and
enforceable unless otherwise terminated, after due notice and hearing for reasons
provided in the existing terms and conditions under the concession or service
agreement or contract, or when invalidated by the Commission, after due notice and
hearing, where national security, national emergency or public interest so dictates.


SECTION 28. Conditions of license. - The Commission or the concerned
regulatory unit, may impose such conditions on the licensee as it may deem necessary,
such as;

(a) Tariffs, rates and charges that may be imposed from its customers or consumers

(b) Term fixing the duration of the privilege.

(c) Grounds for modification, suspension or cancellation of the License.

(d) Minimum technical performance and service level standards.

(e) Expansion targets and service level improvements over time.

(8 Restrictions or conditions for transferability of the business or not controlling interest
in the business.

{g) Reportorial requirements and obligations of the grantee.

(h) Submission to annual performance audit by the Commission or its duly authorized
representative(s). The Commission shall specify the requirements and procedure for
existing holders A of Certificate of Public Convenience (CPC), Certificates of Public
Convenience and Necessity (CPCN) issued by NWRB, or Certificate of Conformance
{CoC} issued by LWUA, to convert their existing certificates into licenses to operate in
accordance with Sec. 27 herein. All existing providers of water supply and sanitation
services without a legal and valid Certificate of Public Convenience, Certificate of Public
Convenience and Necessity, or Certificate of Conformance shall register with the
Commission and apply for a license within six (6) months from the effectivity of this
Act

SECTION 29. Rights and Duties of Licensees, -
(a) Any person granted a license under this Acts hall have the obligation to ensure that
licensed activities are conducted to further public interest and, in particular:
(1) Foster the maintenance and development of efficient, coordinated, and viable
operation of their licensed activities;
(2) Ensure that their water supply and sanitation services are provided in a diligent,
conscientious and workman like manner, in accordance with applicable laws rules and
regulations issued by the Commission and the generally accepted standards and
practices of the water supply and sanitation industry; and
(3) Comply with drinking water quality requirements and standards that may be
established by the Commission.
{b) Any person granted a license under this Act shall, to the extent allowed by law and
specified in the license, has the right to acquire or lease land, lay or repair water or
sanitation main lines and other relevant facilities in public ways to fulfill the terms and
conditions under the license.
(c) Subject to any condition or limitation laid down in the license, a licensee may
discontinue water supply and sanitation services to a customer if such customer
defaults in the payment of fees due to the licensee for the water supplied or sanitation
services provided, or for acts of pilferage pursuant to Sections 8, 9, 10, and of Republic
Act No. 8041, otherwise known as the Water Crisis Act of 1995.
(d) Any license issued under this Act shall contain provisions designed to ensure that
licensees:
(1) Publish the Tariff and other charges approved by and the terms and conditions
imposed by the Commission for the provision of water supply and sanitation services.


(2) Prepare, within three (3) months from the issuance of a license, in consultation with
its customers, a Customer Service Code specifying the manner and procedure for: (a)
metering, billing, and collection of the licensee's approved tariff and other charges, (b)
disconnection or suspension of service in case of non-payment of tariffs and/or other
charges, or acts of pilferage, and (c) recommendation and recovery of arrears in tariffs
and other charges;

(3) Maintain financial accounts in accordance with the manner and procedure specified
in the license and as may be required by the Commission; and

(4) Maintain and upon request by anyone during regular office hours, promptly make
available for scrutiny and inspection such data, statistics and other information, as may
be required by the Commission,

SECTION 30. Setting Tariffs, Rates, and Other Charges. - Regulatory units shall
establish tariffs, rates and other charges which are fair and reasonable, and ensure
economic viability and a fair return on investments.

Tariffs, rates and charges shall be based on and consistent with a rate- setting
methodology that the Commission shall, after due consultation, define and publish,
taking into account the following, among others:

{a) Reasonable and prudent capital and recurrent costs of providing the service
including a reasonable rate of return on capital;

(b)Pfficiency of the service;

(c) Incentives for enhancement of efficiency;

(d) Willingness to pay of the customers/ consumers;

(e) Equity considerations; and

(6) Administrative simplicity:

‘Tariffs, rates, and charges set by the regulatory units shall be presumed valid and
reasonable unless a protest or contest is filed with the Commission.

SECTION 31. Direct Access. - Fifty-one (51) percent of the registered water
consumers in a municipality, city or province may petition for direct access to water
from any water service provider subject to concurrence by the service provider and
approval by the Commission. The Commission shall promulgate rules and procedures
for this mode of service.

SECTION 32. Innovative Schemes to Improve Ffficiency and Management of
‘Systems. - The Commission shall promote innovative schemes such as the consolidation
or integration of water supply and sanitation services, or providers in the same service
area, where it shall result in improved efficiency, service expansion and lower costs.

To this end, the Commission shall establish and issue such rules and guidelines
‘as may be necessary to (a) create incentives to encourage efficiency and service
expansion; (b) establish the standards and targets that service providers are required to
meet; and (c) define the fines and penalties that shall be imposed for failure to meet
such standards and targets.



CHAPTER VI
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION

SECTION 33. Proceedings before the Commission. - For the purpose of any
investigation, inquiry or proceeding, the Commission shall:

(a) Issue subpoena duces tecum and subpoena ad testificandum;

(b) Appoint hearing officers to hear and receive evidence on behalf of the
Commission;

(c) Cite any person or party for contempt for refusal to appear, testify, or comply
with an order of the Commission on any matter that is the subject of investigation,
inquiry or proceeding before the Commission,

SECTION 34, Orders and Decisions of the Commission. - Any order, resolution,
or decisions of the Commission shall be promulgated promptly, expeditiously,
reasonably, and in writing, and shall state clearly and distinetly the facts and law on
which it is based.

The Commission shall publish and make available for public inspection, all
decisions and final orders in the adjudication of contested cases or applications.

SECTION 35. Appeals Procedure and Prohibition Against Injunction. -
(a) The orders, rulings, and decisions of the Commission are final and executory unless
appealed to the Court of Appeals within fifteen (15) days from receipt of notice of such
order, ruling or decision: Provided, That orders, rulings, and decisions of the
Commission approving tariffs, shall be immediately executory and may be suspended
only upon appeal and filing of a bond, in an amount to be fixed by the Commission, to
answer for damages occasioned by the suspension or stay of execution of such orders,
rulings, and decisions.
{b) No injunction may be issued by any court or administrative agency to restrain any
proceeding before, or the implementation or execution of any order, ruling, or decision
of the Commission, except on the basis of a question of law brought before the Supreme
Court on certiorari.
(c) Any act or decision of the Commission shall not be invalidated merely because of a
defect or irregularity in, or in connection with, the appointment or vacancy in the Office
of the Chairperson or any other member of the Commission.

CHAPTER VII
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

SECTION 36, Interface with Other Sector Regulators. -
{a) The DENR shail continue to exercise primary jurisdiction over programs aimed at
protecting the environment and the quality of water sources from waste and pollution,
and shall promulgate rules, regulations, and standards in this regard, The Department
of Health (DOH) shall continue to exercise primary jurisdiction over the determination
and enforcement of standards for quality drinking water and sanitation.
(b) The Commission shall coordinate with the:


(1) DOH to ensure that the standards and targets for quality drinking water and
sanitation are consistently complied with;

(2) LGUs for development projects relating to water supply and sanitation; and

(3) Department of Public Works and Highways for flood control and harnessing and
impounding of water.

SECTION 37. Transfer of Rights and Obligations. - The Commission shall, by
virtue of this Act, be subrogated to all the rights, and assume all the obligations, of the
Water Utilities Division of the NWRB, the regulatory offices of MWSS and LWUA, the
regulatory units of all special economic zones, and all other government agencies and
units whose powers and functions have been transferred to the Commission

The transfer of powers and functions to the Department of the concerned
agencies as herein provided for, shall be deemed completed within six (6) months after
the effectivity of this Act. The transfer of powers and functions shall include all
applicable funds, personnel, records, property and equipment, as may be necessary.
The same shall apply to agencies which have been attached to the Department by virtue
of this Act,

All agencies transferred, subsumed and attached to the Department, shall
continue to function under their present mandates until the six-month transition period
mandated under this Act shall have lapsed. The heads of the affected agencies shall
continue to serve until replaced.

Allrights and obligations of the affected agencies are hereby transferred to and
assumed by the Commission, and shall be acted upon in accordance with the rules and
regulations of the Commission on Audit and other pertinent laws, rules, and
regulations.

SECTION 38. Absorption or Separation from Service of Employees of the
Subrogated Agencies. - The current employees of the Water Utilities Division of the
NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of all special
economic zones, and all other government agencies and units whose powers and
functions have been transferred to the Commission shall enjoy security of tenure, and
shall be absorbed by the Department, in accordance with their staffing pattern and the
selection process as prescribed under Republic Act No. 6656 or the Government
Reorganization Law,

Employees opting to be separated from the service as a consequence of the
consolidation, and reconstitution under the provisions of this Act shall, within one (1)
month from their separation or phase out from the service, receive separation benefits
in accordance with existing laws, and those who are qualified to retire shall be allowed
to retire and be entitled to all benefits under existing retirement laws.

SECTION 39, Water Trust Fund. - There is hereby created a Water Trust Fund in
the Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees,
registration fees, supervision and regulation enforcement fees, filing fees, testing fees,
and other service income from the use of water resources shall be remitted to the Water
Trust Fund, The trust fund shall be accounted separately from the government's general



revenues and shall be automatically appropriated to the Department. Proceeds from
the trust fund shall be utilized for water development, water sanitation and waste water
treatment and management, and water sustainability programs and projects authorized
under this Act: Provided, That a maximum of ten percent (10%) of the total income
generated from raw water extraction shall be given as share of the concerned local
government unit or indigenous people (IP) community who own the specific areas or
land where the raw water was sourced

CHAPTER VIII
FINAL PROVISIONS

SECTION 40. Applicability of Ease of Doing Business Law. ~ The prescribed
processing time provided under Section 9.b of Republic Act No. 11032, otherwise
known as the Ease of Doing Business and Efficient Government Service Delivery Act of
2018, shall be applicable to all agencies and LGUs covered under this Act particularly
on accessing government services,

SECTION 41, Transitory Provisions, - Performance audit of all water -related
agencies and institutions, including LUA and water districts, MWS5, MWSS-RO and
its concessionaires, LGU-run utilities, Tourism Infrastructure and Enterprise Zone
Authority, Philippine Economic Zone Authority, Bases Conversion and Development
Authority, Subic Bay Metropolitan Authority, DIG, and NIA, shall be conducted by
the Department,

SECTION 42. Appropriations - The amount necessary to cover the initial
implementation of this Act shall be charged against the currents year's appropriations
of the agencies and offices transferred and subsumed by the Department and the
Commission in the General Appropriations Act. Thereafter, such sums as may be
necessary for the continued implementation of the Act shall be included in the annual
GAA.

SECHION 43. Implementing Rules and Regulations. - Within one hundred
eighty (180) days from the effectivity of this Act, the Department, NEDA, DBM, DENR,
CSC, in consultation with concerned government agencies, the Presidential Legislative
Liaison Office shall promulgate rules and regulations for the effective implementation
of this Act.

SECTION 44. Separability Clause, ~ If any reason, any portion or provision of
this Act shall be held unconstitutional or invalid, the remaining, provisions not affected
thereby shall continue to be in full force and effect.

SECTION 45. Repealing Clause. ~
(a) The following provisions are hereby repealed:

1) Section 3 (h) and Section 12 on the provision with respect to fixing of water
rates and sanitation service fees, Section 3 (n) on the provision with respect to regulation
of waterworks and deep wells, and Section 3 (p) on the provision with respect to



regulation of waterworks and sanitation systems in privately owned subdivisions of
Republic Act 6234 entitled, An Act Creating The Metropolitan Waterworks And
Sewerage System And Dissolving The National Waterworks And Sewerage Authority,
And For Other Parposes, as amended.

2) Title IM on Local Water Utilities Administration Law of Presidential Decree
No. 198 otherwise known as the Provincial Water Utilities Act of 1973, as amended by
Letter of Instruction No. 700 - Providing Measures To Control And Regulate Increase
In Water Rates, Letter of Instruction No, 744 - Relative To Reliable Water Supply At
Reasonable Rates In The Countryside on the, Executive Order No. 124, 30) January 1987
= Reorganization Act of the Ministry of Public Works and Highways, Executive Order
No. 123, 30 January 1987 - Reorganization Act of Ministry of Social Services and
Development.

3) Republic Act No, 3601 as amended by Presidential Decree No, 552 and
Presidential Decree No. 1702 pertaining to the creation of the National Irrigation
Administration;

4) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order
No. 124, dated 30 January 1987, Reorganizing the Department of Public Works and
Highways, Redefining Its Powers and Functions, and For Other Purposes on renaming
and reorganizing, the National Water Resources Council into the National Water
Resources Board.

(b) The following provisions are hereby amended accordingly:
1) Section 3 paragraph 3 Commonwealth Act No. 146, as amended, otherwise
known as the Public Service Act pertaining to all cases involving the fixing of rates;

2) Section 154, Article V, Chapter I, Title One, Book I of Republic Act No. 7160,
as amended, otherwise known as the “Local Government Code of 1991”, and its
implementing rules and regulations on the power of the local government units to fix
the rates of water utilities owned, operated and maintained by them within their
jurisdiction is hereby repealed or modified accordingly.

3) Section 13 (b) on the regulation of enterprises within the Economic Zone under
Republic Act No. 7916 as amended, otherwise known as “The Special Economic Zone
Act of 1995”;

4) Section 69 of Republic Act No. 9593 otherwise known as “fhe Tourism Act of
2009” and its implementing rules and regulations which mandate the Tourism
Infrastructure and Enterprise Zone Authority to grant franchises, supervise the
operation of public utilities, and register, monitor and regulate enterprises within
‘Tourism Enterprise Zones, are hereby repealed or modified accordingly;

5) Sections 7 and 8 on the adjudication of water pollution cases under Republic
Act No. 3931 entitled, An Act Creating The National Water And Air Pollution Control


Commission, particularly with respect to Section 6 letters e, fg, j, k Presidential Decree
984 entitled, Providing for the Revision of Republic Act No. 3931, Commonly Known
as the Pollution Control Law, and For Other Purposes;

6) Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the
“Philippine Clean Water Act of 2004”;

7) Articles 3(d) and 79 of Presidential Decree No. 1067, otherwise known as The
Water Code of the Philippines;

8) Sections 9, 10, 11, 12 and 13, Chapter II of Presidential Decree No, 856,
otherwise known as the “Code on Sanitation of the Philippines”; and

9) Section 3.2 (b) of Executive Order No. 149 Series of 1993 transferring the
Laguna Lake Development Authority Natural Resources. All other laws, presidential
decrees, executive orders, presidential proclamations, rules and regulations, or parts
thereof which are inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

SECTION 46, Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,