Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution  Hills, Quezon City
NINETEENTH CONGRESS
Second Regular Session
{riousEB|LLNO.9133
INTRODUCED BY HON. RuWEL PETER S. GONZAGA
EXPLANATORY NOTE
Access  to  potable,  sanitary  and  safe  drinking  water  is the  most  basic  requirement for
human  health,  and  it is the government's responsibility to ensure that every citizen  has
access to good health and ensure the well-being of our people.
On the contrary, the governance and maintenance of our water resources remains lacking
in systematic and collaborative efforts which contributed as the major problem of unsafe
and  unsanitary  water.  Safe  drinking  and  proper  sanitation  facilities  should   not  be  a
privilege of those who are in rich or live in urban centers. With the growing population of
our  country  and  economic  growth  brought  inadequate  management  of  urban,  rural,
industrial,   and   agricultural  wastewater  resulting   in  the  drinking-water  of  millions  of
Filipinos  becoming  dangerously  contaminated  or  chemically  polluted.  The  surface  and
groundwater  in  some  areas  across the  country  remain  contaminated  because  of open
defecation,  improper management,  and  disposal  of human excreta and  blackwater that
exposed  communities to waterborne diseases especially those  coming from  rural  areas
where poverty is high. Such inequalities are aggravated and the lack of access to potable
water and sanitation leads to poor health and low productivity.
To monitor and properly implement a system that will guarantee safe potable water, there
should  be  a  primary  agency  responsible  for  national  policy-making,  coordination,  and
management of all the water resources in the Philippines. All government agencies related
to water shall  be  rationalized  under this  Department.  The  Integrated  Water  Regulatory
Commission shall enforce effective and adequate delivery of water and sanitation services
throughout  the  country  under  a  coverage  or  framework  of  quality  and  performance
targets.  It  must  respond  to  the  current  environmental  challenges  and  mange  water
resources through a concerted government effort engaging various sectors.
Thus,  this  bill  seeks to  create a  Department of Water  Resources and  Water  Regulatory
Commission and Integrated Water Regulatory Commission.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution  Hills, Quezon City
NINETEENTH CONGRESS
Second  Regular Sess.Ion
in`OusE BILL NO.  913 3
INTRODUCED HON. RuWEL PETER S. GONZAGA
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND
THE WATER REGULATORY COMMISSIONf  DEFINING THEIR MANDATES,  POWERS
AND FUNCTION AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Phllipplnes in Congress
assembled:
CHAPTER 1
GENERAL PROVISIONS
SECTION  1. Short 7lifle. -  This Act shall be known as the "National Water Act''.
SEC. 2. DeclaJafion of poll.cy.  -  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.
SEC. 3. Definitl.on of Terms. As used in this Act:
(a)  Bu/k worer supp/I.er refers to any entity,  natural orjuridical, 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 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


(aa)     Soc{.a/ I.nc/usi.on  refers to  the  process  of improving  the  terms  for disadvantaged
individuals and groups to take part in society.
(bb)    ror[.ffs  refer to  such  amounts which  may be charged  by  licensees' to their water
supply   and   sanitation   services   based   on   principles,   standards,   and   guidelines
established by the Department of Water Resources.
(cc)     Wofer  Demc7nd  Manogemenf  nyDMJ  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 water as it flow from source, through
use, to disposal;
(4)  Shift the timing of use from peak to off-peak periods; and
(5)  Increased the ability of the Water system to continue to serve society during
times when water is in short supply.
(dd)    Wc7fer Dt.sfr[.cts 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.
(ee)     Wc7ter po//ufron  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) Wc7fer Resource refers to water under the ground  or groundwater,  water above the
ground  such  as  surface  water,  run-offs,  floods,  stormwater  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.
(hh)     Wofer5em.ce provt.der(WSP) refers to the water district, any Local Government unit
(LGU)-run water utility, Barangay Waterworks and Sanitation Association BWSA), Rural
Waterworks,   Rural   Waterworks   Sanitation   Association   (RWSA),   cooperative   and
private sector entity that provides water supply services to any given are.
(ii)  lvorer supp/y serve.ce  refers to  any  activity comprising  Levels  I,  111  and  water  supply
including  bulk suppliers, suppliers to subdivisions, and other water service providers.
CHAPTER 11
THE DEPARTMENT OF WATER RESOURCES
SEC. 4. The Department of Water Resources -There is hereby created and established
the Department of Water Resources, hereinafter referred to as the Department.
SEC.  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 agriculture.
The  Department shall  also  be the  primary agency responsible for the  planning  a  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  7lhe Water Code of the Phi./I.pp!.nes and  Republic Act No. 9275,
otherw.ise 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  all  acts and  omissions in violation
of Presidential  Decree  (PD)  No.  984,  s  1976,  as amended  entitled,  Prov[.dl.ng 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,  Beautifiication,  Improvement  And  Gainful  Utilization  Of The  Pasig
River,  Providing  For The Regulation And Control Of Pollution Of The River And  Its
Banks ln Order to Enhance Its Development. Thereby Maxim.izing Its Utilizat.Ion for
Soc[.o-Econom[.c Purpose, and other related laws.
SEC. 6. Guiding Principles -In the pursuit of its mandate, tie Department shall be guided
by the following  key principles:
(a)  The concept of good water governance of 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
organization,  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 (lwRM) 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 lwRM  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  base  decision  support  systems,  proper
information   education    communication    (lEC)    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  the  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   modelling   and   warning   systems  that  are   essential   or  an
effective, efficient, and sustainable water resources management system.
(fl   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
sewage 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.
SEC 7. Odjecri.res of fbe Deparfmenf. -The Department shall:
(a)  Promote and adopt water demand management as a national policy to ensure
that water is optimized, that water efficiency and conversation become a way
of life, that the recycling and reuse of water and treated waste water are widely
practiced that water is, that water is property priced to encourage efficient use
and conservation and that rainwater, flood waters, and  run-offs 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 user.
(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 resources 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;
(0   Strengthen and coordinate policy making and  planning towards ensuring the
availability of water for food  security and  energy security,  as well  as towards
ensuring  the  availability  of  water  for  food  security  and  energy,  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.
SEC. 8. Poi"ers and Func[I.ons of the Deparfmenf.  - The  Department shall  have the
following powers and functions:
I.  Policymaking  and  Planning
(a)  Ensure that integrated Water Resources  Management (IWRM)  is adopted  as the
strategic  framework  tor  water  management  policymaking  and  planning  in  the
country    and     coordinate    the    implementation,     promotion,     revision,    and
enhancement of IWRM plans;
(b)  Formulate  policies,  strategies,  and  target  in  coordination  with  other  relevant
entities to  meet the goals and  objectives for water supply and  sanitation, water
quality,  irrigation,  hydropower,  flood  control,  stormwater  utilization,  and  urban
drainage.  Such policies shall, among other guidelines, integrate the issue 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
lwRM 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 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
developing or updating 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  stormwater  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;
a)   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;
(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;
(in)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-sectorial, inter-agency, and
interdepartmental 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;
(o)  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   11   of
Presidential  Decree  No.  856,  otherwise  known  as the  Code on  Sonltof{.on  of the
Philippines.I
(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.
11.        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


Ill.
and    planning,    and    appropriate   sanctions   to    be   imposed   for   non-
compliance;
(d)  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:
(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;
a)   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
(I)   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.
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  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;
(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 rules and regulations.
lv.       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.       OtherFunctions
(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  contracts,  joint  venture  agreements  or  understanding,   public-
private      partnerships,      and      memorandum      of     agreements      or
understanding,  either domestic  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.
SEC. 9. Secretary of the Department of Water Resources. -The author.ity and
responsibility 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)  Establish  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;
(e)  Supervise all attached agencies and corporations in accordance with law;
(0   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) Act as 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
ti)   Perform such other duties and responsibilities as may be provided by law.
SEC.10. Offl.ce of the Secretary. -The Office of the Secretary shall be composed
of the Secretary, Undersecretary, -ant Secretary and the Secretary's immediate staff.
SEC.11. undersecretarl.es. -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:  Prov{.bed,  That  no  Undersecretary shall  be  assigned
purely   to   administrative   responsibilities.   Within   their   respective   functional   areas   of
responsibility, the Undersecretaries shall:
(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
(c)  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:  Prov[.bed,  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.
SIC.  12.  Assi.sfanf  Searefori.es.  -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   in  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.
SEC.13. Organizafional Structure. -The Department shall be composed of the
following organizational units:
(a) Deporfmenf 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
Human   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 At  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 orderto 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
er\ttJed, An  Act Creating  The  Metropolitan  Waterworks And  Sewerage  System
And Dissolving The National Waterworks And Sewerage Authordy,. And For Other
Purposes, shall be transferred from the DPWH and attached to the Department:
Prove.bed,   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 Authordy,  Prescrib.ing  Its  Powers,
Functions And Duties, Providing Funds Therefor, And For Other Purposes shar} 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 necessary.
(c)  Offlices, Functions und Personnel to be Completely 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 all 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. 510 and Executive Order No. 816,
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 (DA);
(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) Funcf[.ons  fo be  77t7nsrerred fo  the Dapc7rfmenf. - 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 DENR;
(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   Soils  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 Serv[.cos -The Department shall create the following support services:
(1)  The P/onnt.ng and Po/I.cyservt.ce 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
development consistent 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)   Develop  and  regularly  update  a  comprehensive  and  integrated  National
Water Resources Management Plan and ensure its integration into existing
land  use plans;
(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  stormwater 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   stormwater  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,
bureaus 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 Dec[.s[.on Support System Serv[.ce 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 lt 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 following:
(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;
(d) flood forecasting model for major rivers;
(e)  optimization-simulation       management       models       for      watershed
conservation,   conjunctive   surface   and   groundwater   use,   irrigation
scheduling,    normal    and    emergency    operations    of    multi-purpose
reservoirs; and
(i)   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;
(c)  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
services, 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  personnel  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 of indigenous training materials;
(iv)  Develop,  establish,  and  maintain  an  efficient  and  cost-effective  property
procurement  system  and  facilities  and  coordinate  or  otherwise  interface
with  relevant agencies, whether government or private, for the purpose of
developing or upgrading the system;
(v)   Develop,  establish,  and  maintain  an  efficient 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
human resources.
(4)  The [ego/ and [egis/off.ve Research SerVI.ce shall provide the Department with
services  on  such  legal  affairs  as  contract  letting  and  litigation,  legal  and
legislative  research,  complaints  and   investigation,   legal  counselling  and
other matters of law, and 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;
(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 prow.ide the Department
with  coordinated  services  relating  to  financial  systems  and  procedures,  budget,  cash,
accounting   and   all   financial   housekeeping   matters,   and   shall   exercise  the  following
functions:
(i)   Advise   the   Secretary   on    all    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 Regu/ot{.on  Serv[.ce 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
evaluation  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  /ntemo/ Audlt Servi.ce  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 audit;
(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  Pub/{.c A#ot.rs Serv[.ce  shall  enhance  relations with  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  and
organizing of special events, and shall exercise the following functions:
(i)    Public Awareness
a)   Advise the Secretary on  matters pertaining to public affairs;
b)   Develop     and     supervise     the     implementation     of     comprehensible
communications programs on  relevant policies,  programs and  plans of the
Department;
c)    Produceand 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, trimedia and other stakeholders on matters related to the above-
enumerated functions; and
j)    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;
c)   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 proj.ects.
(iii)  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.
(0  Bureaus.  -The  Department  shall  create  bureaus  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 (1) Assistant Director.
(1) Bureau off/ood Con fro/ and Drat.noge 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 multihazard 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,  tsunamj,
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 flows;
(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;
(xiii)             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 Wafer  Qua/!.fy MCJnogemenf 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 of 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.


(3)  A  Wafer Resources  Regt.ono/  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.  Each
WRRO shall  perform the following duties and  responsibilities:
(i)    Formulate or update and  coordinate the  river basin  master plans for river
basins within itsjurisdictions 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
(viii)              Perform  such  functions and  activities,  as  may be  mandated  by  law,
which are necessary for the effective  performance of the abovementioned
objectives.
The  Department  shall   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 supervision over (1) the planning,
project  design  and  evaluation  function  and  (2)  technical  assistance  to  the  River  Basin
Organizations within the water resources region.
SEC. 14. Water Potlwfi.on Ad/.wdi.cation 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,   .4n   et   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  field  officers  of  the  Department  in
accordance with rules and regulations to be promulgated by the Board.
CHAPTER 111
I NTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT
SIC.15. Initerface 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;
(c)  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;
(f)   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, including
local government units (1 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.
SEC. 16. Natl.onal Wd¢er Sector Poli.ty 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.
5FC._:7. ?owers  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  &  multi-stakeholder  participation  in  the  development,  updating,  and
sharing  of information  system  as  policy,  planning  and  decision-making  tools
consistent with IWRM.
SIC. 8. Transfer of fl..ghrs and Obli.gatjons. -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-in 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  effectivity  of this  Act.  As  such,  all  affected  agencies,  offices,  units  shall
continue to function under their present mandates.
CHAPTER IV
WATER REGULATORY COMMISSION
SEC.19. Water flegulatory 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 Commissioners,  and  shall  be vested  with
powers and functions, as conferred, and set forth hereunder.


SEC.  20.  7lfte  flegufotory  unjfs.  - 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  MW  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)  are 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.
SEC. 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 11 & Ill water supply, including suppliers
to subdivisions and  e 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 enforcej.ust and reasonable technical standards, classifications,
and measurements of service;
(c)  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.
(d) 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;
(0   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 propr[.o or upon a written complaint, any matter concerning
the   operation   of  the   service  and   issues   on   price   manipulation   and   anti-
competitive behavior;


a)   Impose penalties and fines against any licensee or against its owners, directors,
officers, agents or representatives for any violation of this Act or 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;
(I)   Advise, apprise and coordinate with other relevant agencies of the national or
local   government  on   any   matter  relating   to  water  supply  and   sanitation
services;
(in)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  committee  as   provided   in  the  following
section.
(o) 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. 22. Powers and Functions of the Regulatory units. -The regulatory un.its
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;
(0   Respond  to  consumer  complaints  and  ensure  the  adequate  promotion  of
consumer interests and  investigate mofu proprl.o 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  or  mofu propri.o  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 theirjurisdiction, and publish reports detailing the results thereof, as may
be necessary or required by the Commission;
(I)   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 wilfully  refused  to  comply with
any order, rule or regulation of the Commission or any provision of this Act,.
(in)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.
SEE. 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
engineering  services,  hydrology and  other related  services, with at least three
(3)  years  of  actual  and  distinguished  experience  in  their  respective  fields  of
expertise:  Provt.bed,  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 (5) years and
the other two (2) members shall serve for three (3) years: Prov[.bed further, That
any member whose term has expired as specified herein shall serve as such until
a successor shall have been appointed and qualified: Provt.bed furthermore, That
any  appointment  to  fill  a  vacancy  in  the  Commission  arising  from   death,
removal,  retirement or resignation shall  be made only for the unexpired term:
Prov[.bed, f[.nc7//y, 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:  Prove.ded,  That  in  promulgating  rules,
regulations,   guidelines   and   in   exercising   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
p/cJnfi.//a  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  p/onf[.//a  positions  of  the  Commission  shall  be  filled  by  regular  appointments  in
accordance with  Civil  Service  laws,  rules,  and  regulations.  Members  of the  Commission
shall enjoy security of tenure and shall not be suspended or removed from office except
forjust 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.
SEC.  24. Secretor(.af a/ the Commisst.on.  - The  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;
c)    Monitor and  assess activities of the  Regulatory Units vis-a-vis their respective
annual performance plans and targets;
d)   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.
SEC.  25.  Execu[jwe  Dfroctor.  -  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 thejurisdiction of the Commission.
The Executive Director shall be responsible for the effective implementation of the
policies, plans, programs, rules, regulations and directives 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.


SEC. 26. Compensation and Other fmolunents. - 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
SIC. Z]. 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 fairly,  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.
SIC 28. Conditions of £I.cense. -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.
f)    Restrictions  or  conditions  for  transferability  of  the  business  or  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
of  A  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.


SIC. Z9. Rights and Duties of Llcensees. -
(a)  Any person granted a license under this Act shall have the obligation to ensure
thatlicensedactivitiesareconductedtofurtherpublicinterestand,inparticular:
(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  11  of Republic Act No. 8041,  otherwise  known as the  Wafer Cr[.5t.s ,4cf
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.
SEC. 30. Seffing  rari.ffs,  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)  Efficiency of the service;
(c)  Incentives for enhancement of efficiency;
(d) Willingness to pay of the customers/consumers;
(e)  Equity considerations; and


(f)   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.
SEC.31. DfrectAccess.  -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.
SEE.  32.  Innovative  Schemes  to  Improve  Effiiciency  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
QUAsl-JUDICIAL FUNCTIONS OF THE COMMISSION
SEC.  33.  Proceedings  Before  the  Commlsslon.   -   For  the  purpose  of  any
investigation, inquiry or proceeding, the Commission shall:
(a)  lssue 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.
SEC. 34. Orders and Decisions of the Commission. - Any order, resolutiion, or
decisions of the  Commission  shall  be  promulgated  promptly,  expeditiously,  reasonably,
and in writing, and shall state clearly and distinctly 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.
Set. 35. Appeals Procedure and Prohibition Against lrtyunction. -
(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:  Provi.bed,  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 cerfi.orori..


(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
SEE. 36. Ititerface with Other Sector Regulators. -
(a)  The DENR shall continue to exercise primaryjurisdiction 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 primaryjurisdiction
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.
SEC. 37. 7+ansfer of flights and Obli.gofi.ons. -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.
All  rights 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.
SEE.  38.  Absorption   or   Separation   from   Service   Of   EmpLayees   of  the
Sqbrogafed Agenct.es.  -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 jn
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.


SEC. 39. Water Tmsf Fund. -There is hereby created a Water Trust Fund in the
Bureau   of  Treasury.  All   nonLtax  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:  Prov[.bed,  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  peoples  (lp)  community who  own  the  specific  areas or
land where the raw water was sourced.
CHAPTER VllI
FINAL PROVISIONS
S.ec.  fo.  App.Iicabiltry  of  Ease  of  Doing   Business  Law.  -  The  prescr.ibed
processing time provided under Section 9.b of Republic Act No.  11032, otherwise known
?s the E.pse. ?f D?ing Business and Efficient Government Service Delivery Act of 2018, shall
be applicable of all  agencies and  LGUs covered  under this Act particularly on  accessing
government services.
Sec. 41. rrunsi.tory ProMisl.ons. - Performance audit of all water-related agencies
and    institutions,    including    LWUA    and    water    districts,    MW    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,  DILG, and  NIA, shall be conducted  by the Department.
SEC.   42.   Approprl.afl.ons   -   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.
SEC. 43.  /mplemenfing Rules and Regulafjons. -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.
SEC. 44. Saparabill.ty Clause. - lf 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.
SEC. 45. Rapcali.ng 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   Creof[.ng   7lhe
Metropolitan  Waterworks  And  Sewerage  System  And  Dissolving  The  National
Waterworks And Sewerage Authorrty, And For Other Purposes, as amended.


2)   Title  Ill  on  Local Water  Utilities Administration  Law of Presidential  Decree  No.
198 otherwise known as the Prove.nc{.a/ Wc7fer Uf{./[t{.es Act of 7973, as amended
try Letter.o{ _lrstruchion No. 700 -Providing Measures To Control And Regulate
/ncrec7s€ /n Wafer Roles, Letter of Instruction No. 744 -Re/cJfi.ve ro Re/I.ob/e WcJter
Supply At Reasonable Rates ln The Countryside on the, ExecutiIve Order No.124,
30  January  19&]  -  Reorganization  Act  of  the  Ministry  of  Public  Works  and
Ht.ghwoys,  Executive  Order  No.123,  30 January  1987  -Reorgcmirof[.on 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 198], Reorganising 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 11 of Republic Act No. 7160,  as
amended,  otherwise  known  as the  "loco/ Govemmenf Code of 7997",  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 theirjurisdiction 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 19957,
4)   Section 69 of Republic Act No.  9593  otherwise  known  as ''The 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;
5J   Sections 7 and  8 on the adjudication  of water pollution  cases under Republic
Act No. 3931  enditled, An  Act Creating  The  National Water And  Air Pollution
Contro/  Comm!.sst.on,  particularly with  respect to  Section  6  letters  e,  f,  g, j,  k
Pres;iderrdal Decree 984 enditled, 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   11   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 from  the  Office  of the  President to the
Department of Environment and 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.


I,
SEC.  46.  Effect(.vity.  -This  Act  shall  take  effect  fifteen   (15)  days  after  its
publication in the Offic!.a/ GozTette or in a newspaper of general circulation.
Approved,