FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No.13 59 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to institutionalize a Philippine Economic Environmental and 
Natural Resources Accounting (PEENRA) System to reflect environmental inputs 
and outputs in the determination of national income accounts. 
The national income accounts are important indicators for determining the 
level of development of a country. Conventional national income accounting 
systems measure economic performance by determining the value of goods and 
services produced in a country and aggregating them to come up with indicators of 
economic development such as the Gross National Product (GNP) and Gross 
Domestic Product (GDP). The goods and services that are included in this 
accounting system are those that have been "marketed", the prices of which have 
been the basis for estimating the value that are then included in computing 
economic indicators. This methodology thus reflects the goods and services 
produced, sold and bought in the economy. 
However, the conventional methodology for computing national income 
accounts has its shortcomings. In the process of producing marketed goods and 
services, the natural environment generates goods and services that are utilized but 
are not valuated. Consumption benefits of amenities provided by the natural 
environment, waste disposal services and pollution are part of producing marketed 
commodities but are not valuated (positively or negatively) and reflected in national 
income accounting. 
Indicators and standards generated by the national income accounting system 
are considered vital information for economic management and policymaking. They 
serve as basis for socio economic planning, formulation of development programs, 
and policy analysis in aid of legislation, among others. Thus, it is important that the 
national income accounts reflect a more accurate state of development and economic 
performance of the country. It should incorporate both environmental and non-
environmental economic inputs and outputs for policymakers to make responsive, 
relevant and effective laws, plans and programs necessary for national development. 
In view of the foregoing, the urgent passage of this bill is earnestly sought. 
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LOREN LEGARDA 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No.1359 
Introduced by Senator Loren Legarda 
AN ACT 
INSTITUTIONALIZING THE ENVIRONMENTAL AND NATURAL 
RESOURCES ACCOUNTING SYSTEM, DESIGNATING THE AGENCIES 
RESPONSIBLE FOR ITS IMPLEMENTATION, PROVIDING INSTITUTIONAL 
ARRANGEMENTS AMONG RESPONSIBLE AGENCIES AND 
APPROPRIATING FUNDS THEREOF AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Title. This Act shall be known as the "Philippine Economic 
2 
Environmental and Natural Resources Accounting Act of 2010." 
3 
4 
SECTION 2. Statement of Policy. It is hereby declared a policy of the State 
5 
to: 
6 
(a) 
Develop a comprehensive information system and accounting framework 
7 
that will take into consideration the role of both natural and environmental 
8 
resources and their impact on the country's economy; 
9 
(b) 
10 
11 
(c) 
Include and institutionalize environmental and natural resources accounting 
as part of the national income accounting system; 
Provide indicators to facilitate the integration of environmental and economic 
12 
concerns in national development planning and policy making; and 
13 
(d) 
Establish and improve inter-agency coordination for the purpose of linking 
14 
economic and environmental information and efficient data gathering among 
15 
concerned agencies. 
16 
17 
SECTION 3. Philippine Economic Environmental and Natural Resources 
18 
Accounting (PEENRA) System. A Philippine Economic Environmental and Natural 
19 
Resources Accounting (PEENRA) System is hereby institutionalized within the 
20 
government bureaucracy. The PEENRA System shall be based on the existing 
21 
environmental accounting frameworks theoretically correct and accepted as 
1 


1 
evaluated by international environmental accounting experts. Among others, the 
2 
PEENRA framework shall include accounting for environmental quality and waste 
3 
disposal services, depreciation of natural capital, and environmental damages. 
4 
5 
SECTION 4. Objectives of the PEENRA System. The PEENRA shall 
6 
supplement the current System of National Accounts and shall have the follOWing 
7 
major functions: 
8 
a) To support economic-environmental policy development; 
9 
b) To generate environmentally-modified national income accounts; and 
10 
c) To serve as a comprehensive data framework in the generation of economic-
11 
environmental statistics. 
12 
13 
SECTION 5. Involvement of Government Agencies. The following agencies 
14 
shall be involved in the establishment and institutionalization of the PEENRA 
15 
System: 
16 
a) Department of Environment and Natural Resources (DENR); 
17 
b) National Statistical Coordination Board (NSCB); 
18 
c) National Economic and Development Authority (NEDA); 
19 
d) Department of Agriculture (DA); 
20 
e) Department of Energy (DOE); and 
21 
f) Other agencies, as necessary. 
22 
23 
SECTION 6. Creation of PEENRA Units. PEENRA units shall be created 
24 
within the organizational structure of the DENR, the NSCB, the NEDA, the DOE 
f5 
and the DA. The functions of each of these units are provided in the following 
2-6 
sections. PEENRA units shall be created in other agencies as necessary. 
27 
The Head of the PEENRA Units should at least be a Division Chief level or 
28 
higher. The Department Head shall designate personnel component for the units 
29 
and! or PEENRA Unit Head. 
, 
30 
31 
SECTION 7. Functions of the Department of Environment and Natural 
32 
Resources PEENRA Unit. The PEENRA Unit at the DENR shall: 
33 
a) Develop and compile sectoral resource and environmental accounts and 
34 
study and formulate viable approaches and methodologies in coordination 
35 
with NSCB; 
2 


1 
b) Conduct studies and research in support of policy development related to 
2 
PEENRA; 
3 
c) Ensure that environmental considerations are integrated in their policy, 
4 
project planning and implementation based on PEENRA results; and 
5 
d) Provide environmental and natural resources data and strengthen its 
6 
statistical capabilities for PEENRA. 
7 
8 
SECTION 8. Functions of the National Statistical Coordination Board 
9 
PEENRA Unit. The PEENRA Unit at the NSCB shall: 
10 
a) Compile the PEENRA accounts, and study and formulate viable approaches 
11 
and methodologies for the PEENRA; 
12 
b) Explore ways and means to modify and improve current environmental and 
13 
economic statistics, in coordination with the concerned date producing 
14 
agencies as well as data users; 
15 
c) Serve as repository of all PEENRA-related data and materials through the 
16 
National Statistical Information Center that the NSCB ha established. 
17 
18 
SECTION 9. Functions of the National Economic and Development 
19 
Authority PEENRA Unit. The PENRA Unit at NEDA shall: 
20 
a) Coordinate the conduct of consultations, orientations, and training seminars 
21 
for the members of the Philippine Council for Sustainable Development 
22 
(PCSD) and other concerned institutions or units; 
23 
b) Coordinate the conduct of studies and research in support of policy 
24 
development related to PEENRA; 
25 
c) Establish mechanism for integration of environmental considerations in 
26 
planning, policy, project development and implementation based on 
27 
PEENRA results; 
28 
d) Formulate and update indicators on the economy-environment interactions 
29 
and sustainable development indices; 
30 
e) Provide technical and secretariat services to the inter-Agency Committee and 
31 
Task Forces which the PEENRA Steering Committee may create for the 
32 
coordinated functioning of the date-generating agencies; and 
33 
f) Act as the secretariat of the PEENRA Steering Committee. 
34 
35 
SECTION 10. Functions of the Department of Agriculture PEENRA Unit. The 
36 
PEENRA Unit at DA shall: 
3 


1 
a) Develop and apply resource account for the agriculture, livestock and fishery 
2 
sectors 
and 
formulate 
viable 
data 
development 
approaches 
and 
3 
methodologies in coordination with the NSCB; 
4 
b) Conduct studies and research in support of policy development related to 
: 5 
PEENRA in its respective sectors; and 
. 6 
c) Ensure that environmental considerations are integrated in their policy, 
·7 
project planning and implementation based on PEENRA results. 
; 8 
The 
above 
PEENRA 
Units 
shall 
closely 
coordinate 
to 
ensure 
. 9 
consistency / complementary of activities in support of PEENRA system. Other 
10 
agencies that will provide inputs to and adopt the PEENRA system may establish 
11 
their own PEENRA units as necessary. 
12 
13 
SECTION 11. Functions of the Department of Energy PEENRA Unit. The 
14 
PEENRA Unit at the DOE shall: 
15 
a) Develop and compile resource accounts for the energy sector and study and 
16 
formulate viable approaches and methodologies in coordination with NSCB; 
17 
b) Conduct studies and researches in support of policy development related to 
18 
PEENRA in its respective sectors; and 
19 
c) Ensure that governmental considerations are integrated in their policy, 
20 
project planning and implementation based on PEENRA results. 
21 
22 
SECTION 12. Data Support. The NSCB, in coordination with the involved 
23 
agencies, shall designate the required environment and economic statistics in the 
24 
agencies/bureaus that shall be responsible for generating such data. 
25 
26 
SECTION 13. Creation of PEENRA Steering Committee (PEENRA-SC). A 
27 
Steering Committee on PEENRA is hereby created which shall initially include in 
28 
addition to the agencies listed in Sec. 6, the following: 
29 
a) The National Statistics Office (NSO); and 
~O 
b) The Department of Trade and Industry (DTI). 
31 
32 
SECTION 14. Functions and Compositions of the PEENRA-SC. The 
33 
PEENRA-SC shall provide directions for the coordinated functioning of the 
34 
PEENRA Units. It shall create ad-hoc or a permanent inter-agency committees and 
35 
task forces who will support the data and teclmical requirements of the PEENRA 
36 
Units. Designated Undersecretary level officials shall represent the member agencies 
4 


• 1 
for DENR, DTI, NSO, DA and the NSCB. There will also be representatives from the 
2 
non-government sector to include one (1) representative each from the academe, 
3 
NGOjPO, business and labor sectors; the Secretary of the Socio-Economic Planning 
4 
and NED A Director-General, as the Chairman of the PCSD, shaH act as the 
. 5 
Chairman of the PEENRA-SC. 
6 
7 
SECTION 15. Staffing Pattern for PEENRA Units. The staffing pattern of 
8 
each PEENRA Unit shall conform to the existing position allocation and 
9 
classification system adopted by the Department of Budget and Management The 
10 
agencies concerned shall as much as practicable utilize existing qualified employees 
J 1 
for their respective PEENRA Units. In case however unavailability of qualified 
12 
employees, the concerned agency shall be allowed to hire new recruits in accordance 
~ 3 
with existing provisions of laws. 
14 
15 
SECTION 16. Funding. The funding PEENRA activities, induding hiding of ) 
16 
personnel, shall be included in the budget preparation of each agency to be 
17 
incorporated in the annual general appropriations act under separate fund items. 
18 
19 
SECTION 17. Implementing Rules. The PEENRA-SC is hereby directed to 
20 
prepare and adopt guidelines to implement the specific provisions of this Act. 
21 
22 
SECTION 18. Effectivity Clause. This Act shall take effect fifteen (15) days 
23 
after its complete publication in the Official Gazette or in at least two (2) national 
24 
newspapers of general circulation, whichever comes earlier. 
25 
26 
Approved, 
5