j`,`
Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
HdusE B`iLTNo.   5205
Introduced by REPRESENTATIVE LAARNI LAVIN ROQUE
EXPLANATORY NOTE
Article 11, Sec.15 of the 1987 Constitution provides that:
aThe  State  shall  protect  and  promote  the  right  to  health  of the
people and instill health consciousness among them."
lt is the State's duty to provide safe, clean, accessible, and affordable drinking
water,  sanitation,  and  irrigation service to the public.  It is of utmost importance that
this   is  achieved  through  a  well-coordinated,   effective,   efficient,   and   sustainable
management of its water and sanitation resources.
According  to  the   2019  World  Water  Development  Report  of  the   United
Nations,  2  billion  people  live  in  countries with  high  water stress  level  and  about 4
billion  experience  severe  water  scarcity  at  least  one  month  in  a  year.  The  World
Health Organization (WHO) reported that water scarcity affects four out of ten people
in  the  world.  World  Vision  stated  that  800  children  under  the  age  of  five  die  of
diarrhea, every day, which is attributed to poor water and sanitation.
A 2015 World Resources Institute study warned that the Philippines will likely
experience a  "severe water shortage"  in the year 2040.  This is  not surprising given
the fact that in the World Bank's 2003 Philippine Environment Monitor, jt was already
reported  that as  of year 2000,  compared to other countries in  Southeast Asia,  the
Philippines  already  ranked  2nd  to  the  lowest  in  terms  of annual  renewable  water
resources per capita.
Access to safe and potable drinking water as a basic right was recognized by
the United  Nations as one of its Millennium  Development Goals (MDGs).  In July 28,
2010,  122  countries  formally  acknowledged  this  "right  to  water"  in  a  UN  General
Assembly.   Barely  two  months  later,   the   lTN   Human   Rights  Council  adopted  a
binding resolution recognizing that the human  right to water and sanitation is part of
the right to adequate standard of living.
Our country has been having recurring water shortages and droughts brought
about by demand and supply factors and exacerbated by natural calamities, extreme
weather events,  global warming,  and climate change.  Population growth,  migration,


t'/'
urbanization,   and   technological   advancds   weigh   in   as   demand   drivers,   while
environmental factors influence supply.
There  have  also  been  seasonal,  occasional,  and  sometimes  artificial  supply
shortages  of  fish  and  other  seafood,  affected  by  the  same  demand  and  supply
factors  that  affect  water  resources,  and  result  in  compromising  food  security  and
raising  prices of water and food sourced from the  inland waters, the seas,  and the
Pacific Ocean.
More than  10 million  people in the Philippines still get their water from unsafe
sources.  As  to  sanitation,  more  than  6  million  people  still  lack  access  to  proper
sanitation facilities.
The country has excess rainwater in the rainy months and acute water needs
in the dry months.
Meanwhile, the national government has many different agencies attending to
compartmentalized   although   related   water  and   fisheries   concerns   but   lacks   a
coherent water and fisheries policy framework. These agencies were created one by
one to  address  issues  and  problems  as they  arose  over the  many past decades.
Neglected was the rationalization of the alphabet soup of agencies.
This   bill   seeks   to   establish   the   national   framework   for   water   resource
management create the Department of Water Resources and the Water Regulatory
Commission to  provide a  unified and  coordinated  service to all  Filipinos with  regard
their  human  right  to  water.  It  seeks  to  establish  a  body  that  shall  ensure  safe,
adequate, affordable, and sustainable water supply and improved sanitation services
for all  Filipinos  and  that this finite  resource will  be  sustained.  Following  the  lead  of
other countries who have found it wise to create a special department to manage this
vital resource of water including Japan, Australia,  China, and India, the availability of
potable  water  in  the  Philippines  and  the  continuing  water  supply  for  domestic,
agricultural  and  industrial  consumption  may  be  ensured  and  the  perennial  problem
that  seriously  affects  the  lives  of  the  people  in  terms  of  health,  sanitation,  food
security, and livelihood may be effectively addressed.
Given the above premises, the urgent passage of this bill is earnestly sought.


1.'1
Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
HousE B.iLi`®fub.     5205
Introduced by REPRESENTATIVE LAARNI LAVIN ROQUE
AN ACT
ESTABLISHING   THE   NATIONAL   FRAMEWORK   FOR   WATER   RESOURCE
MANAGEMENT AND CREATING THE  DEPARTMENT 0F WATER RESOURCES
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES,
POWERS AND FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR
Be  it  enacted  by  the  Senate  and  House  Of  Representatives  of the  Philippines  in
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION  1.  Short  77'f/e.  -This  Act  shall  be  known  as  the  "National  Water
Act„.
SEC.  2.  Dec/arafi.on of Po//.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.
lt  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.
ln  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. Deffr7i.fi.on of Terms. -As used in this Act:
(a) BLi/A water supp/i`er refers to any entity,  natural  or juridical,  whether public or
private,  supplying  or  intending  to  supply  large  quantities  of  raw  or  treated
water  to  buyers  who  will  use  these  for  their  own   consumption,   silch  as
industrial  companies,  or  for  retail  distribution  to  consumers  such  as  water
service  providers  or  real  estate  developers  managing  their  own  distribution
network.I
(b) Environmental  services  refer to  qualitative functions of natural  non-produced
assets of land,  water,  and  air,  including  related  ecosystems,  and  their biota,
and  which  may  be  categorized  into three  basic types:  (a)  disposal  services
which reflect the functions of the natural environment as an absorptive sink for
residuals;   (b)  productive  services  which  reflect  the  economic  functions  of
providing natural resource inputs and space for production and consumption,
and (c) consumer or consumption services which provide for physiological as
well as recreational and related needs of human beings.
(c) F/ood Con fro/ refers to methods, acts,  and protocols to be observed in order
to prevent and reduce the detrimental and catastrophic effects of flood waters
which include sediment-laden or turbid flows, and hyper-concentrated flows or
debris flows.
(d) Flood   Risk   Management   (FRM)   refers   to   such   acts   Of   dofiin`ing   and
determining the appropriate methods, acts, and protocols aimed at preventing
and  reducing  the  risk of incurring  loss  of both  life  and  property due  to flood
waters.  Flood  risk  management consists of a  cycle of prevention,  mitigation,
adaptation, preparedness and early warning, and response and recovery. The
elements  of  FRM  include:  integrating  land-use  planning  and  coastal  zone
management  into  water  management;  adopting  a  holistic  approach  so  that
FRM   is   part  of  wider  risk  or  multi-hazard   management   of  earthquakes,
landslides, and storm surges;  managing risk and uncertainty as a whole so it
not  only  mitigates  hydrological  uncertainties  but  also  social,  economic  and


political   uncertainties   on   account   of   human   behavior   and   the   cultural
dimensions of FRM.
(e) Gender  Equa/i.fy  refers  to  the  principle  asserting  the  equality  of  men  and
women  and  their  right  to  enjoy  equal  conditions  realizing  their  full  human-
potentials  to  contribute  to  and  benefit from  the  results  of development,  and
with the State recognizing that all  human  beings are free and equal  in dignity
and rights,
(f)  /nrrastrucfure and pub/t.c wowhs refer only to wholly or primarily water-related
projects and does not include projects that do not fall within the purview of the
objectives,  power and duties of the Department of Water Resources created
under this Act.
(g) Integrated  Water  Resource   Management  (lwRM)  rofers  to  a  systematic,
collaborative,  and  multi-stakeholder process which  promotes the coordinated
development  and  management  of water,  land,  and  related  resources  within
geophysical  boundaries  in  order  to  maximize  the  resultant  economic  and
social   welfare   in   an   equitable   manner,   and   without   compromising   the
sustainability of vital ecosystems.
(h) Leve/s   of  water  supp/y  refer  to   communal   sources   of  water  described
according to location and size of the recipient human settlement as follows:
(1)  Level  I  or the  point source  is  a  protected  well  or a  developed  spring with
an  outlet but without any distribution  system,  generally adaptable to rural
and upland areas where bosses are thinly scattered, and is a facility which
usually serves an average of 15 households.
(2) Level   11   or  the  communal  faucet  system  or  stand   posts   is   a  system
composed of a water source, a reservoir, a piped distribution network, and
communal  faucets  where  one  faucet  serves  4  to  6  households  and  is
generally  suitable  for  rural  and  urban  fringe  areas  where  houses  are
clustered densely to I.ustify a simple piped system.
(3) Level  Ill  or  the  waterworks  system  or  individual  house  connections  is  a
system with  a water source,  a  reservoir,  a  piped  distribution  network and
household taps, suitable for densely populated urban areas.
(i)  [i'cense  refers  to  the  Water  Supply  and/or  Sanitation  Services  Operating
License  that  the  Water  Regulatory  Commission  is  authorized  to  grant  and
issue to service providers.


'
ti)  i/.censee refers to a service provider to whom a license is granted or issued
by the Water Regulatory Commission.
(k) M/.ss/.onary Water Servjces refer to water supply or services to areas that have
no  existing  safe  water  supply  and  services  due  to  geographic  limitation  or
absence of economic and market viability.
(+)  National  Water  Resources  Management  plan  (NWRMP)  refers  to  a  pal.lay
document   that   contains   a   framework   to   guide   the   development   and
management   of  all   the   water   resources   in   the   Philippines,   the   general
strategies and work to be pursued to ensure the sustainability of the resource
towards  water  security,  and  top-level  direction  on  the  utilization  of  existing
water   resources   in   line   with   national   development   plans,   policies,   and
programs  in  accordance with  the  lwRM  framework.  The  NWRMP  shall  also
include  a  water  infrastructure  development  program  or  all  waters  of  the
country as well  as  provide  general  guidance  on  how this shall  be supported
within  an  integrated  financing  framework that can  draw from  public,  private,
and international development funding sources.
(in)Ivef  Waste  Load  refers  to  the  difference  of  the  initial  waste  load  of  the
abstracted  water  and  the  waste  load  of  the  final  effluent  discharge  of  an
industry
(n) Regu/atory Un/'fs refer to the offices established  under Section  20 of this Act
which issue licenses authorizing the operation of Water Supply and Sanitation
Services,   and   provide,   review,   determine,   fix,   and   approve   water   and
sewerage tariffs, rates, and charges that licensees may impose.
(o) R/.ver bas/'n  refers  to  an  area  of land  drained  by  a  stream  or  body  Of fixed
water and its tributaries which have a common outlet for surface run-off.
(p) R/'ver  gas/.n   Ongani.zaf/.on   /RBO/  refers  to   multi-stakeholder  organizations
which plan, coordinate, and monitor activities within a river basin cluster.
(q) Sani'fafi.on   refers   to   the   provision   of  facilities   and   services   for  the   safe
management of human  excreta, from toilet to containment,  and  storage and
treatment  onsite  or  conveyance,  treatment  and  eventual  safe  end  use  or
disposal, and includes the safe management of solid waste and animal waste.
(r)  Sed/.menf management refers to control of sediment erosion and deposition in
rivers,   reservoirs,  and  coastal  zones  through  non-structural  and  structural
measures and control works.


\
(s) Sustainable  Development Goals  (SDGs)  also known  as the  17  Global  Goals
refer  to  the  universal  call  to  action  to  end  poverty,  protect  the  planet  and
ensure  that  all  people  enjoy  peace  and  prosperity  by  2030  adopted  by  all
United Nations Member States in 2015.
(t)  Sepfage is the liquid and solid  material pumped from a septic tank, cesspool,
or other primary treatment source,
(u) Sapfage  Mar}agemenf refers to the  provision  of proper collection,  treatment,
and disposal of septage.
(v)   Serv/.ce Area  refers  to  the  area  covered  by  the  water  distribution  system,
sewerage, and /or septage management services.I
(w)  Servi.ce  Provt.der refers  to  any  entity,  natural  or juridical,  whether  private  or
public,  providing  or intending  to  provide  levels  11  &  Ill  water supply,  including
bulk water suppliers, sewerage, septage treatment, and disposal services for
domestic, residential, industrial, or commercial use.
(x)   Sewage  refers  to  water  borne  human  or animal  wastes,  excluding  oil  or oil
waste,   removed  from  residences,  buildings,   institutions,  and  industrial  and
commercial  establishments  together  with  such  groundwater,  surface  water
and  storm  waters  as  may  be  present  including  such  waste  from  vessels,
offshore  structures,  other receptacles  intended  to  receive  or retain  waste  or
other places or the combination thereof.
(y)   Sewerage refers to any system  or network of pipelines,  ditches,  channels or
conduits  including  pumping  stations,   lift  stations  and  force  mains,  service
connections including other infrastructure, devices, or appliances appurtenant
thereto,  which  include  the  collection,  transport,   pumping  and  treatment  of
sewage to a point of disposal.
(z) Sewers  refer to  pipes  or such  other works  or structures  which  are  built and
constructed to carry, transport, and dispose sewage.
(aa)  Soc/.a/   /.nc/ust.on    refers   to    the    process    of   improving    the   terms    for
disadvantaged individuals and groups to take part in society.
(bb)  Tart.#s refer to  such  amounts which  may  be charged  by licensees for their
water  supply  and  sanitation  services  based  on  principles,  standards,  and
guidelines established by the Department of Water Resources.


(cc)   Wafer   Demand   Management   /WDM/   refers   to   any   method,   whether
technical,  economic,  administrative,  financial,  or  social  that  will  accomplish
one or more of the following:
(1)  Reduce  the  quantity  or quality of water  required  to  accomplish  a  specific
task;
(2) adjust the nature of the task or the way it is  undertaken  so that it can  be
accomplished with less water or with lower quality water;
(3) Reduce  the  loss  in  quantity  or  quality  of water  as  it  flows  from  source,
through use, to disposal;
(4) Shift the timing of use from peak to off-peak periods; and
(5) Increase the ability of the water system to continue to serve society during
times when water is in short supply.
(dd)Wafer   Dt.sfr7.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  wastewater  collection,  treatment  and
disposal facilities within the boundaries of the district.
(ee) Wafer po//uf/.on refers to any alteration of the physical, chemical, biological, or
radiological  properties  of  a  body  of  water  resulting  jn  the  impairment  of  its
purity or quality.
(ff)   Wafer  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  rainwater,
and the waters of the sea within the territorial jurisdiction of the Philippines.
(gg)Wafer  Resouroes  Peg/.or]s  refer  to  the  contiguous  clusters  of  river  basins
which   are   grouped   together   according   to   the   hydrological   boundaries,
physiographic  features,   and   homogeneity  in  climate,  whether  or  not  they
straddle  different  local  government  units,  for  administrative  purposes  under
the Department of Water Resources.
(hh)Wafer   Serv7.ce   Prov7.der   /WSP/   refers   to   the   water   district,   any   Local
Government    Unit    (LGU)-run    water    utility,    Barangay    Waterworks    and
Sanitation   Association   (BWSA),   Rural   Waterworks   Sanitation   Association


t
(RWSA),  cooperative  and  private  sector  entity  that  provides  water  supply
services to any given area.
(ii)   Wafer sapp/y servr.ce refers to any activity comprising Levels I,  11 and 111 water
supply  including  bulk  suppliers,  suppliers  to  subdivisions,  and  other  water
service providers.
CHAPTER 11
THE DEPARTMENT OF WATER RESOURCES
SEC. 4.  7lhe Daparfmenf of Wafer Resources - There is hereby created and
established  the  Department  of  Water  Resources,  hereinafter  referred  to  as  the
Department.
SEC.  5.  Manc/ate  of the  Deparfmenf.  -The  Department shall  be the  primary
agency responsible for the comprehensive and integrated identification and mapping
of   all   water   resources,   planning,   policy   formulation,   and   management   of   the
ownership,   appropriation,   utilization,   exploitation,   development,   and   protection  of
water resources in the Philippines to ensure the optimal use thereof for domestic and
municipal water supply,  sanitation,  irrigation,  hydropower,  industry,  navigation, flood
management, and recreation except fisheries or aquaculture,
The Department shall also be the primary agency responsible for the planning
and policy formulation towards the attainment of universal access to safe, adequate,
affordable,  and  sustainable  water  supply,  and  improved  sanitation  services  for  all
Filipinos.
The  Department shall  be the  primary national agency to enforce  Presidential
Decree  No.  1067  otherw.ise  known  as  The  Water  Code  of  the  Philippines  and
Republic Act No. 9275, otherwise known as the Phf.//'pp;.ne C/ean WaterAcf of 2004.
The Department shall exercise the powers and functions of the defunct Pasig
River  Rehabilitation  Commission  created  under  Executive  Order  No.  54  Series  of
1999  and  abolished  under  Executive  Order  No.  93  Series  of 2019,  specifically the
following  roles  that  were  transferred  to  the  Manila  Bay  Task  Force  and  DENR
through the latter EO:


(a)  Update and take the lead in the overall implementation of the Pasig River
Rehabilitation    Master   Plan,   which   shall    harness   the    Pasig    River's
potential   for   transportation,    recreation   and   tourism    purposes   while
undertaking the rehabilitation and restoration of its maritime life; and
(b) Ensure  that  the  easements  provided  for  in  the  Civil  Code  and  other
relevant  laws  are  enforced,  especially  in  all  the  esteros  and  waterways
that drain into the pasig River                            as well as abate the dumping
of untreated  industrial wastewater and  sewerage  into the  river,  including
all  acts  and  omissions  in  violation  of Presidential  Decree  (PD)  No.  984,
s. 1916, as amended endNled, Providing For The Revision Of Republic Act
No.   3931,   Commonly  Known  As  The   Pollution   Control  Law,  And   For
Other   Purposes,  PD   No.   274,   s.   1973   enurled,   Pertaining   To   The
Preservation,  Beautification,  Improvement And  Gainful  Utilization  Of The
Pasig  River,  Providing  For The  Regulation  And  Control  Of  Pollution  Of
The River And Its Banks ln Order To Enhance Its Development, Thereby
Maximizing   Its   Utilization   For   Socio-Economic   Purposes,   and   other
related laws.
SEC.  6.  Gut.dt.ng  Princ;.p/es.  -ln  the  pursuit  of  its  mandate,  the  Department
shall be guided by the following key principles:
(a)  The concept of good water governance for water security and sufficiency shall
be  adopted  across  all  levels  of  governance  by  stakeholders  such  as  the
national    government,    local    government,    non-government    organizations,
private  organizations,  individuals,  even  global  societal  actors,  and  in  various
sectors  such  as  water  supply,  irrigation,  fisheries,  hydropower,  navigation,
ecosystem  services,  flood  management,  climate  change,  and  recreation.  It
shall  entail  publicly  transparent,  socially  accountable,  and  multi-stakeholder
participatory   water    policy    planning,    management,    and    decision-making
processes.
(b) Access  to  safe  water  supply  and  improved  sanitation  is  a  human  right  that
needs to be fulfilled and protected.
(c) Integrated  Water  Resource  Management  flwRM)  shall  be  adopted  as  the
basic framework which  is  the  coordinated  development  and  management of
water,  land,  and  related  resources within hydrological  boundaries to optimize
economic  and  social  welfare  without  compromising  the  sustainability  of vital


ecosystems.  The  IWRM  Framework  shall  include  an  enabling  environment
that  utilizes  proper  policies,  legal  instruments,  and     institutional  frameworks
for effective  implementation,  participatory  and  collaborative  water  policy  and
management  decisions,   and   management  instruments  for  efficient  use  of
updated and accurate data,  science-based decision support systems,  proper
information,   education,   communication   (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    following    a
framework with specific, measurable, attainable, relevant, and timely actions.
(d) Each  river basin  has  its  unique  characteristics  relating  to the  physical,  socio
cultural,  and  other  aspects,  and  water  management  shall  be  performed  at
river-basin level, involving all the stakeholders at that particular river basin.
(e) Integrated and accurate data collection and analysis and the use of scientific
decision    support    systems    shall    be    undertaken    in    water    resources
management including flood modeling and warning systems that are essential
for  an   effective,   efficient,   and   sustainable  water  resources   management
system.
(f)  The development of water resources shall include strategies for the mitigation
of water-related hazards and climate change adaptation.
(g) Water  resources  and  services  should  be  provided  where  they  are  intended
and most needed so that water is fairly and sustainably managed.
(h) The proper operation and maintenance of waterworks systems resulting in the
uninterrupted   and   adequate   supply   and   distribution   of  potable   water  for
domestic and  other purposes,  and the  proper operation and  maintenance of
sewerage  systems which  are  essential  services to  public  health  and  safety,
are to be ensured at all times. The State shall therefore supervise and control
the establishment, operation, and maintenance of such systems.
SEC 7.  Ob/.ecff.yes of the Daparfmenf. -The Department shall:
(a) Promote and adopt water demand management as a national policy to ensure
that water is optimized, that water efflcjency and conservation  become a way
of life, that the recycling and reuse of water and treated wastewater are widely
practiced,   that   water   is   properiy   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 users;
(d) Ensure  that  integrated water resources  management  is  strongly  coordinated
with land use and.coastal and multi-hazard planning and management;
(e) Develop sustainably, and manage water sources and water resources toward
water  security,  taking  into  consideration  water,  land,  and  related  resources
aimed    at   increasing   water   dependability   for   different   uses,    optimizing
economic  benefits and  social welfare without compromising the  sustainability
of vital environmental systems;
(f)  Strengthen  and  coordinate  policy making  and  planning  towards ensuring the
availability of water for food  security and  energy security,  as well  as towards
the protection of communities and environments against flood and other water
induced hazards including sediment hazards;
(g) Ensure that the strategy for water resources development and conservation is
participatory,  and that planners,  policymakers and  users  including community
members are involved at all levels;
(h) Develop  a  standardized  pricing  framework for water  use  those  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.  Powers  and Funcfi.ons  of the  Deparfmen£.  -  The  Department  shall
have the following powers and functions:


I. Policymaking and Planning
(a) Ensure that Integrated Water Resources Management (lwRM) is adopted as
the strategic framework for water management policymaking  and  planning  in
the   country   and   coordinate   the   implementation,   promotion,   revision   and
enhancement of lwRM plans;
(b) Formulate policies,  strategies,  and targets  in coordination with other relevant
entities  to  meet  the  goals  and  objectives  for  water  supply  and  sanitation,
water quality,  irrigation,  hydropower,  flood  control,  stormwater utilization,  and
urban  drainage.  Such  policies  shall,  among  other  guidelines,  integrate  the
issues of water and  sanitation,  food  security,  energy,  environment and flood
control, and climate change;
(c) Formulate   and   develop   policies   to   promote   universal   access   to   safe,
adequate,  affordable,  and  sustainable water supply,  and  improved  sanitation
services for all Filipinos;
(d)    Regularly   update,   every   five   years   or   as   deemed   necessary   by   the
Department,  and  in  consultation  with  other  agencies  and  stakeholders,  the
NWRMP following the  IWRM framework and  integrate therein  a national  land
use plan;
(e) Undertake  river  basin  survey,  inventory  and  appraisal  of water  and  related
resources,    and    develop    comprehensive    basin-wide    plans    of   storage,
retardation,  and  control  to  maximize  conservation  and  multipurpose  use  of
water in the basin;
(f)  Conduct continuing hydrological and hydrometeorological surveys and studies
of  the  country's  renewable  water  supply,     and  establish,     operate,     and
maintain    observation    station    networks   with    a  view  towards   formulating
long-term  policies  to  balance  the  sustainability  and  optimal multiple use of
water resources,  defining  the  hydrologic boundaries of basins of the existing
water   supply   sources    and    developing    or   updating    and    implementing
countrywide comprehensive basin-wide master plans;
(g) Strengthen and coordinate policy making and planning for flood management,
integrated  with  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;
0)   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-sectoral,  inter-agency,
and  inter-departmental  coordination  on  all  aspects  of  data  gathering  and
management  for  water  resources  development  planning   and   compel  the
submission   of   statistics   and   data   on   water   utilization   with   the   aim   of
operationalizing the integrated approach to water resources management;
(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 San7taf/.on
of the Philippines;


(p) Promote Philippine participation  in  information sharing and  education on  best
practices in support of international efforts to achieve universal access to safe
water   and    improved   sanitation;   and   the   integration   of   water,   energy,
environment, and food security; and
(q) Issue and promulgate rules,  regulations and guidelines as may be necessary
to implement and enforce its powers and functions under this Act.
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 and planning, and appropriate
sanctions to be imposed for non-compliance;
(d) Regularly review regulations prescribed by any government ageney 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:
(I) 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;
0)   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.
Ill.     Institutional Arrangement with public water organizations
(a) Develop  guidelines  including  rules  of  partnership,  between  and  among  the
Department,  field  offices  of national  government  agencies,  LGUs  and  other
stakeholders in water resource management, and facilitate the establishment
of  multi-stakeholder  river  basin  organizations  (RBOs)  per  river  basin,  and
strengthen and support existing RBOs and monitor their activities;
(b) Develop materials for capacity building and training of prospective RBOs;
(c) Authorize its representatives or any deputized agent to enter any property of
public  dominion  with  or  without  prior  notice  and  consent,  any  private  land,
building  or enclave,  whether inhabited  or not,  for the  purpose of conducting
hydrologic surveys and investigations,  including assessing and evaluating the


conditions of water facilities  installed,  and  determining  compliance with water
laws and standards;
(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.
IV.     Coordination
(a) Coordinate   and   integrate   water   resources   development   activities   of  the
country   within   the   context   of  national   plans   and   policies   for   social   and
economic development;
(b) Coordinate   with   other   government   agencies,   universities,   academe   and
private  professional  groups  in  all  aspects  of data  gathering,  the  conduct  of
special   studies   and   research   on   all   related   aspects   of  water   resources
management   and   development   such   as   climate   change,   environmental
quality,     desalination,     and     the    development    of    operating     strategies,
procedures, and protocols and accompanying computerized decision tools for
major water facilities;
(c) Coordinate   with   the   concerned   and   relevant   agencies   engaged   in   flood
control, flood risk management, and drought risk management; and
(d) Coordinate proactively with LGUs to ensure the integration of water resources
development   plans   into   their   comprehensive   land   use   plans   (CLUPs),
Comprehensive Development Plans (CDPs) or Provincial Physical Framework
and Development Plan (PPFDP).
V.           Other Functions
(a)  Create  when  necessary7  water  resource  subsidiaries,  instrumentalities,  and
entities   to  engage   in   water  transmission,   water  distribution,   waste  water


treatment   and   management,   and   sanitation   in   accordance   with   existing
relevant laws.
(b)  Enter into contracts, joint venture agreements or understanding, public-private
partnerships,   and   memorandum   of   agreements   or   understanding,   either
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 Deparfmenf of Wafer Resources. -The authority 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;
(f)  Represent    the    Department    in    contracts,    awards,    and    other    similar
agreements;
(g) Delegate  authority for the  performance  of any  power or function,  as  defined
herein to officials and employees under his direction as deemed appropriate;
(h) 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
0)   Perform such other duties and responsibilities as may be provided by law.


SEC.   10.   Offr.ce  of the  Secretary.  -The  Office  of  the  Secretary  shall  be
composed of the Secretary, Undersecretary, Assistant Secretary and the Secretary's
immediate staff.
SEC.11.  Undersecretary.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:   Provt.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:   Provt.ted,  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.
SEC.  12. Assi.sfanf Secrefar7.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:    Provr'ded,    That    at    least    one    (1)    of   the
Undersecretaries  and  at  least two  (2)  of the  Assistant  Secretaries  shall  be  career
officers.
SEC.13.  Orgar.i.zafi'or}a/ Structure.  -The  Department shall  be  composed  of
the following organizational units:
(a)            Daparfmenf praper. -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)     A#ached   agenci.es.    -    The    Department    shall    exercise    administrative
supervision  over the  following  agencies for  purposes  of policy  and  program
coordination, monitoring, and evaluation:
(1 ) The Local Water Utilities Administration (LWUA), whose mandate,  powers,
and functions are defined in Presidential Decree No.198, otherwise known
as the Public Water Utilities Act of 1973, as amended, shall be transterred
from  the  Department of Public Works  and  Highways  and  attached  to the
Department.  It shall continue to primarily function as a specialized lending
institution  for  the  promotion,  development,  and  financing  of  local  water
utilities. In the implementation of its functions, the LWUA shall:
(i)  prescribe   minimum   standards  and   regulations   in   order  to  assure
acceptable    standards    of    construction    materials    and    supplies,
maintenance,   operation,   personnel   training,   accounting   and  fiscal
practices for local water utilities;
(ii) furnish technical assistance and personnel training programs for local
water utilities;
(iii)        monitor and evaluate local water standards; and


(iv)        effect system integration, joint investment and operation, district
annexation  and  de-annexation  whenever economically warranted  as
amended by See. 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\"ed, An Act Creating The Metropolitan Waterworks And
Sewerage    System    And    Dissolving    The    National    Waterworks    And
Sewerage Authority; And For And For Other Purposes, shall be transferred
from  the  DPWH  and  attached  to  the  Department:  Prow/.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
end"ed,   An   Act   Creating   The   Laguna   Lake   Development   Authority,
Prescribing  Its  Powers,  Functions And  Duties,  Providing  Funds Therefor,
And For Other Purposes shall be transferred from the DENR and attached
to the Department.
The   LLDA   shall   continue   to   serve   as   the   lake   management   and
development    authority    similar    to    a     multi-stakeholder    river    basin
organization  and  shall  ensure  the  implementation  of  the  Laguna  Lake
Master   Plan   which   shall   be   updated   by   the   Department   to   ensure
alignment with the NWRMP.
Any other agency  performing  water resources  management,  conservation  and
protection  functions  may  be  transferred  to  the  Department  as  the  President
deems necessary.
(c)    Offices,  Functions  and  Personnel  to  be  Completely  Subsumed  under  the
Daparfmenf.  - 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) Functions to  be  Transferred to the  Department. - The [diow.ing functiions 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   Servt.ces   -The   Department   shall   create   the   following   support
services:
(1)  The  P/ami.ng  and  Po/i.cy  Servi.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) Coordinate   river-basin   planning   following   the   integrated   water
resources management framework and the river-basin approach;
(vi)  Formulate      or      update      existing      River      Basin      Master     or
Comprehensive    Plans    which    includes    all    aspects    of   water
management   and   development   such   as         water   supply   and
sanitation,    irrigation,    flood    control    and    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/`si.on  Support System  Serv7.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
f)   water quality and ecological models.
(vi)Develop   and   administer  the   management   information   system   and
knowledge systems of the Department to:


a)   Retrieve,   process,   and   monitor  information  on  all   projects  and
activities in the web portal;
b)   Conduct  and  apply  systems  and  process  engineering,  software
development, software configuration management;
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    lcT   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   Adm/.n/.sfraf/.ve   and  Human   Resouroe   Servi.ce   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 efricient 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 Lega/ and Leg/.s/afi`ve Research Service 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
ofrices;
(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  specia[izatjon  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   Resouroe   Regu/af/.or}   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  /ntema/ Aud/`f 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  Ptjb//.c  Affa/+s  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)    Produce    and    supervise    the    dissemination    of   communication
materials  in  line  with  the  priorities  of the  Department  and  national
government public information programs;
d)    Conduct public opinion and attitude surveys to identify the interests
and concerns of the stakeholders of the Department;
e)    Establish policies on the presentation and publication of the content
of  the   communication   materials   for   dissemination   to   print   and
broadcast media;
I)     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,  tri-media  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 projects.
(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.
(f)  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 of F/ood Con fro/ and Dra/.nage 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  (lFM)  which  integrates
water, land, coastal zone and multi-hazard management.  In integrating
land   use   planning   and   water   management,   the   Department   shall
harmonize  and  synthesize  plans  to  enable  the  sharing  of information
between land-use planning and    water management authorities. In this


regard,  a holistic approach shall be adopted  by making the  lFM a part
of  a  wider  risk  or  multi-hazard   management  system   that   includes
earthquakes,   landslides,  fires,  tsunami,  and  other  calamities  of  the
same gravity or nature;
(ii)  Integrate climate change  and  disaster risk  reduction  and  management
in policies and plans;
(iii) Prepare   master  plans   of  flood   management  and   drainage   in   river
basins  in  coordination with  the concerned water resources  region  and
river basin organizations;
(iv) Prepare master plans for urban drainage in cities and municipalities;
(v)   Prepare  feasibility  studies  of  recommended  measures  in  the  master
plans;
(vi) plan and design structural measures for flood control and drainage;
(vii)Implement and collaborate with concerned agencies on the formulation
and adoption of non-structural measures for flood control and drainage;
(viii) Patrol and investigate rivers, and monitor stream 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 Water Qua/i.fy Management shall supervise and exercise control
over all  aspects of water quality management to ensure the sustainability
of the country's water resources and the protection  of the environment.  It
should  take  into  account  proper  and  integrated  treatment  of freshwater
and  wastewater within  the  whole  process.  For this  purpose,  the  Bureau
shall exercise the following functions:


(i)  Establish  water  quality  guidelines  for  freshwater  and            coastal  or
marine  waters  as  basis  for  classifying  water  bodies  in  the  country.
Specifically,   develop  water  quality  indices  or  composite   metrics  to
measure   the  quality   status   and   health   of  natural   water   bodies   in
relation to ecological integrity and function;
(ii) Establish effluent standards for point discharges to receiving bodies of
water;
(iii)Establish    intemationa]ly    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)Regulariy 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 Resouroes Regi.ona/ Offr`ce (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    its   jurisdictions   ensuring    consistency   with   the
National Water Resources Management Framework Plan;
(ii)  Advocate  and  strongly  support  the  creation  and  functioning  of  multi-
stakeholder   river   basin   organizations   (RBOs)   and   serve   as   the
secretariat of the said RBOs;
(iii) Undertake  and  evaluate  the  planning,  design,  and  work  supervision
functions      of the  Department  for the  water  infrastructures  within  the
region;
(iv) Ensure   the   implementation   of  laws,   policies,   programs,   rules   and
regulations   regarding  the  abovementioned  infrastructure  as  well  as
public and private physical structures;
(v)   Provide  technical  assistance  related  to  the  water-related  fllnctions  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 Po//ufi.on  Ad/.udf.cafi.on  Board.  -There  is  hereby  created  a
Water  Pollution  Adjudication  Board  under  the  Office  of  the  Secretary.  The  Board
shall  be  composed  of the  Secretary  as  Chairperson,  two  (2)  Undersecretaries  as
may  be  designated  by  the  Secretary,  the  Director  of  Water  Quality  Management
Bureau,   and   three   (3)   other   representatives   from   other   stakeholders   to   be
designated by the Secretary as members.
The  Board  shall  assume the  powers and  functions  of the  National  Pollution
Control  Commission with  respect to the  adjudication  of water pollution  cases  under
Republic Act No. 3931  entitled, An Act Creafi.ng The Ivafi.ona/ lvaferAnd Ai.r Po//u£/.on
Control Commission, Pres.idendial Decree 984 entiitled Providing For The Revision Of
Republic  Act  No.  3931,  Commonly  Known  as  the  Pollution  Control  Law,  And  For
Ofher Purposes, particulariy 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 Ill
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT


SEC.15. Interface and Institutional Arrangements with Other Agencies. -
(a) The Department of Health (DOH) shall continue to have primary authority and
responsibility for setting  and  enforcing  drinking  water  quality  standards.  The
Department  shall  coordinate  with  the  DOH  in  this  aspect,  and  shall  ensure
consistency of standards and targets, as well as the compliance of permittees
with mandated standards;
(b)The   Department   of   Environment   and   Natural   Resources   (DENR)   shall
continue   to   have   primary   authority   and   responsibility   for   protecting   the
environment and managing the country's watersheds;
(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 (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.  Ivaff.ona/  Wafer Sector Po/j.cy 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.
SEC. 17 . Powers and Functions of the National Water Sector Policy Board -
The   NWSPB   shall   perform   policymaking,   coordination,   integration,   supervision,
monitoring and evaluation functions, and shall have the following responsibilities:
(a)Approve   the   NWRMP   which   shall   serve   as   a   principal   guide   to   water
management efforts in the country and shall be reviewed every five (5+years
interval, or as may be deemed necessary,  in order to ensure its relevance to
the times;
(b) Provide  overall  policy direction  and  recommend  policies  on  water  resources
requiring Presidential decision;
(c) Advise   the   President   on   the   status   of  water   management   and   supply,
recommend  to  the  President  the  declaration  of  a  state  calamity  in  areas
affected  by  water  supply,  and  submit  proposals  to  restore  normalcy  in  the
affected areas;
(d) Ensure  a  multi-stakeholder  participation  in  the  development,  updating,  and
sharing  of information  system  as  policy,  planning  and  decision-making  tools
consistent with IWRM.
SEC.18.  rrar7sfer of Rf'ghls and Ob/f.gafi.ons. -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.   Wafer  Regu/afory  Commi.ss/.on.  -  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.    The  Regu/atory  Un/.ts.  - The  regulatory  units  of the  Commission
shall be composed of the central regulatory unit and the regional regulatory units.
The economic regulatory units and functions of the  MWSS,  NWRB,  LWUA,
SBMA,  PEZA,  and  TIEZA  are  hereby  transferred  to  the  Commission,  and  shall
collectively  comprise   its  central   regulatory  unit  for  water  supply  and   sanitation
services that:  (a)  provide  services to  more  than  one  province;  and  (b)  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 Funcfi.ons of the  Commi'ssj.on. -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 & 111 water supply,
including suppliers to subdivisions and /er other service providers, sewerage, and/or


septage   treatment   and   disposal   services   for   domestic,   residential,   institutional,
industrial or commercial use.
The Commission shall exercise the following powers and functions:
(a)  Issue   and   promulgate   rules,   regulations   and   guidelines   as   may   be
necessary to  implement  and  enforce  its  powers  and  functions  under this
Act;
(b) Promulgate    and    enforce   just   and    reasonable   technical    standards,
classifications and measurements of service;
(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;
(I)  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,    mofu   prop/.a   or   upon    a   written    complaint,    any   matter
concerning  the operation  of the service and  issues on  price manipulation
and anti-competitive behavior;


0)  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;
(1)  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;
®) 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.
S;E:C.  Z2.  Powers  and  Functions  of the  Regulatory  Units.  - The  regulatory
units of the Commission shall have the following powers and functions:
(a)  Issue  licenses  authorizing  the  operation  of water  supply  and  sanitation
services in any specified area or areas within the Philippines.
(b)   Impose  fines,  charges  and  other  penalties  upon  any  provider  and/or  its
officers  and  stockholders  who  shall  fail  or  refuse  to  register or obtain  a
license  prior  to  operation  or  commencement  of  business,  as  provided


hereunder.
(c)   Review, determine, fix, and approve, consistent with the rules,  guidelines,
procedures   and   methodologies   which   the   Commission   shall   provide,
proposed water and sewerage and septage management tariffs, rates and
charges that licensees may impose upon their consumers;
(d)  Appraise   and   value   property   and   equipment   used   by   licensees   in
providing water supply and sanitation services.
(e)   Enforce technical,  financial,  and  other performance standards  set  by the
Commission for licensees or utilities;
(I)   Respond to consumer complaints and  ensure the adequate promotion  of
consumer  interests  and  investigate  mofu  propi'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  mofLi propi.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;
a)    Impose  and  collect  annual  levies  determined  as  a  percentage  of  gross
revenue  accruing                             in  relation  to  the  licensed  activities,  and
reasonable fees and  surcharges as  may  be  necessary for achieving the
purposes, powers, and functions of the regulator;
(k)   Conduct   benchmarking   and   monitor  the   performance   of  licensees  or
utilities  under  their  jurisdiction,  and  publish  reports  detailing  the  results
thereof,  as  may be  necessary                                              or required  by the
Commission;
(1)   Amend,  modify, suspend, or revoke any license issued by them, after due
notice and hearing, on any of the following grounds:
(1)           when the facts and  circumstances on the strength of which the
license  was   issued   have   been   materially   misrepresented   or   have


materially changed;
(2)           where  the  licensee  has  failed  to  meet  or  comply  with  terms,
conditions, and performance targets,  including but not limited to service
expansion, that may have been set in the license;
(3)           where  the  licensee  is  found  to  be  manifestly  inefficient  in  the
operation  of or provision  of water supply and  sanitation  services  in  its
area; or
(4)           when  the  licensee  thereof  has  violated  or  willfully  refused  to
comply  with  any  order,  rule  or  regulation  of  the  Commission  or  any
provision of this Act;
(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.
SE.C. 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:  Provi.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:  Prov7.bed,  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:
Provr.ded  rurfber,  That  any  member whose  term  has  expired  as  specified
herein shall serve as such  until a successor shall have been appointed and


qualified: Prow/`ded fwhhermore, 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/.ded, fina//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:  Prov/.ted,  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/ant/.//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/ant/.//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 for just cause as specified by law.
(e)The  Chairperson  and  members  of the  Commission  or any  of their  relatives
within   the   fourth   civil   degree   of   consanguinity   or   affinity,   legitimate   or
common law, shall be prohibited from holding any interest whatsoever, either
as investor, stockholder, officer or director, in any company or entity engaged
in   provision   of  water  supply  and   distribution,   septage   management  and
sewerage   services   and   must,   therefore,   divest   through   sale   or   legal
disposition  of any  and  all  interests  in  the  water  sector upon  assumption  to
office-


SEC.  24.  Secrefart`af of the Commf.ss/.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.  Execuf/.ve  D/./ector.  - 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 jn all matters falling within the jurisdiction of the Commission.
The Executive Director shall be responsible for the effective implementation of
the  policies,  plans,  programs,  rules,  regulations  and  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.  Compensafi.on and Ofher Emo/unents.  -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
SE:C.  Z].   Registration  and   Licensing  of  All  Water  Supply  and   Sanitation
Serv7.ces.  - 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.
SEC   28.      Cond/.f/.ons  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.
a)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.
® 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),   Certificategrof   Public
Convenience    and    Necessity    (CPCN)    issued    by    NWRB,    or    Certificate    of


Conformance   (CoC)  issued   by  LWUA,   to  convert  their  existing  certificates   into
licensestooperatein accordancewith 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,
SEC. 29. RI.ghts and Duties of Licensees. -
(a)  Any  person  granted  a  license  under  this  Act  shall  have  the  obligation  to
ensure that licensed activities are conducted to further public interest and,  in
particular:
(I) 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
Water Crisis Act of 1995`
(d) Any license issued under this Act shall contain provisions designed to ensure
that licensees:
(I) 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.  Seffi.ng  Tart.ffs,  Rates,  and Other Changes. - 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,   D/'recf  Access.   -Fifty-one   (51)   percent  of  the   registered   water
consumers in  a  municipality,  city or province may petition for direct access to water
from any water service provider subject to concurrence  by the service provider and
approval    by   the    Commission.    The   Commission    shall    promulgate    rules   and
procedures for this mode of service.
SEC.  32.  Innovative  Schemes  to  Improve  Efficieney  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
.   ,   I    , the same service area, where it shall result in improved efficieney, service expansion
and lowercosts.
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
QUASIUuDICIAL FUNCTIONS OF THE COMMISSION
SEC.  33.  Proceedings  Before  the  Commission.  -  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. -A\ny order, resoluton, 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.
SEC. 35. Appeals Procedure and Prohibition Against Injunction. ~
(a) The   orders,   rulings,   and   decisions   of  the   Commission   are   final   and
executory unless appealed to the Court of Appeals within fifteen (15) days
from  receipt  of  notice  of  such  order,  ruling  or  decision:  Prov/-ted,  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.
a)  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.orarr..
(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
SEC. 36. Interface with Other Sector Regulators. -
(a)  The  DENR  shall  continue  to  exercise  primary jurisdiction  over  programs
aimed at -protecting the environment and the quality of water sources from
waste    and    pollution,    and    shall    promulgate    rules,    regulations,    and
standards in this  regard.  The  Department of Health  (DOH) shall  continue
to exercise primary jurisdiction over the determination and enforcement of
standards for quality drinking water and sanitation.
(b) The Commission shall coordinate with the:
(1) DOH to ensure that the standards and targets for quality drinking water
and sanitation are consistently complied with;
(2) LGUs for development projects relating to water supply and  sanitation;
and
(3) Department   of   Public   Works   and   Highways   for   flood   control   and
harnessing and impounding of water.
SEC.  37.   77ansfer of Ri.ghfs  and  Ob/7.gafi.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 ofrices 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.
SEC.   38.   Absorption   or   Separation   from   Service   of   Employees   of  the
Subrogated Ager}c;.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 in accordance with existing laws, and those who are qualified to retire shall
be allowed to retire and be entitled to all benefits under existing retirement laws.
SEC. 39.  Water rmsf Fund. -There is hereby created a Water Trust Fund in
the  Bureau  of  Treasury.  All  non-tax  revenues,  including  raw  water  pricing,  permit
fees,   registration  fees,   supervision  and   regulation   enforcement  fees,  filing  fees,
testing  fees,  and  other  service  income  from  the  use  of water  resources  shall  be
remitted to the Water Trust Fund. The trust fund shall be accounted separately from
the  government's  general  revenues  and  shall  be  automatically  appropriated  to  the
Department.    Proceeds from  the trust fund  shall  be  utilized for water development,


water   sanitation    and    waste   water   treatment   and    management,    and   water
`   ,   ,    . sustainability  programs  and  projects  authorized  under  this  Act:    Prov7.ded,  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 VIII
FINAL PROVISIONS.
See.  40.  Applicability  of  Ease  of  Doing  Business  Law.  -  The  prescriibed
processing  time  provided  under  Section  9.b  of  Republic Act  No.11032,  otherwise
known as the Ease of Doing Business and Efficient Government Service Delivery Act
of  2078,   shall   be  applicable  to  all  agencies  and  LGUs  covered  under  this  Act
particularly on accessing government services.
See.   41.   Transt.tory  Provr.st'ons.   -   Performance   audit  of  all   water-related
agencies  and  institutions,  including  LWUA  and  water  districts,  MWSS,  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.   Approprt.afi.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.  Implementing Rules and Regulations. -With.in one hundred e.igrty
(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.  Saparabi.//.fy C/ause. - If any reason, any portion or provision of this
`  ,    ,    . Act  shall  be  held  unconstitutional  or  invalid,  the  remaining  provisions  not  affected
thereby shall continue to be in full force and effect.
SEC.  45.   Repea/i.ng   C/ause.   -  (a)  The  following   provisions  are   hereby
repealed:
1 )  Section 3 (h) and Section  12 on the provision with respect to fixing of water
rates  and  sanitation  service  fees,  Section  3  (n)  on  the  provision  with  respect  to
regulation  of waterworks  and  deep  wells,  and  Section  3  (p)  on  the  provision  with
respect  to  regulation   of  waterworks  and  sanitation  systems   in   privately  owned
subdivisions   of  Republic  Act  6234   entitled,   An  Act   Creating   7lhe   Mefropo/i.fan
Waterworks  And  Sewerage  System  And  Dissolving  The  National  Waterworks  And
Sewerage Authority, And For Other Purposes, as amended.
2) Title  Ill  on  Local  Water  Utilities Administration  Law of Presidential  Decree
No.198 otherwise known as the Provr'nct.a/ Wafer Uf7./i.fr'es Act of 7973, as amended
by  Letter  Of  lnstTuctiion  No.  loo  -  Providing  Measures  To  Control  And  Regulate
Increase  ln  Water Rates, Letter Of lnstructiion No. T44 -  Relative To  Reliable Water
Supply At Reasonable Rates ln  The  Countryside on the, ExeoutlIve Order No.  124,
30   January   198]   -     Reorganization   Act  of  the   Ministry   of  Public  Works   and
H/.ghways,  Executive  Order  No.   123,  30  January  1987  -    Reongani.zaff.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  1987,  Reorganizing  the  Department  of  Public
Works and Highways, Redefilning 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 "Loca/ 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  their
jurisdiction is hereby repealed or modified accordingly.
3)  Section  13  (b)  on  the  regulation  of enterprises  within  the  Economic  Zone
under   Republic  Act   No.   7916   as   amended,   otherwise   known   as   "The   Special
Economic Zone Act of 1995",.
4) Section 69 of Republic Act No. 9593 otherwise known as "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;
5)  Sections   7  and   8  on  the  adjudication  of  water  pollution   cases  under
Republ.ic Act No. 3931  enttled, An Act Creating The National Water And Air Pollution
Con fro/  Commf'sst.on,   particularly  with   respect  to   Section   6   letters   e,   f,   g,  j,   k
Prestider\tiial  Deoree  984  erfuitled,  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.
SEC.  46.  Effect/'w.fy.  -This  Act  shall  take  effect  fifteen  (15)  days  after  its
publication in the Off/.c/.a/ Gaze#e or in a newspaper of general circulation.
Approved,