Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH  CONGRESS
Second  Regular Session
`!      HousEBILLNo.9032
Introduced by Rep. LORETO a. ACHARON
AN
ACT ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE AND CREATING THE
DEPARTMENT 0F WATER RESOURCES, AND THE WATER REGULATORY COMMISSION, DEFINING
THEIR MANDATES, POWERS AND FUNCTloNS, AND APPROPRIATING  FUNDS THEREFOR
EXPLANATORY NOTE
The need for the optimum  use of water resources has never been  more evident in  modern
times  than  it  is today.  Water  allocation  simply  described  as the  field  of  managing  of water
resources is multi-faceted with many current and future issues exacerbated with the growing
uncertainties of climate change  and  the  long-term  consequences of previous  management
actions.
This  bill  therefore  seeks the  creation  of a  Department of Water  Resources as the  agency of
government that is responsible for the national policies, its implementation and management
of all the water resources in the country.
All  other  government  agencies  whose  mandates  involve  the  regulation,  management  and
development of all  water resources,  water-related  functions shall  be  rationalized  under this
Department. An  Integrated Water Resources Management Plan shall be provided to serve as
the strategic framework for policy-making and planning.
An  independent Water  Regulatory Commission  is  also  hereby proposed to  ensure that the
rights   and   welfare   of  consumers   are   protected   under   a   transparent   and   accountable
regulatory framework for the effective and adequate delivery of water and sanitation services.
In view of the foregoing, the approval of this measure is earnestly sought.


`.,
Republic of the  Philippines
HOUSE OF REPRESENTATIVES
Quezon City,  Metro Manila
NINETEENTH CONGRESS
Second  Regular Session
HousEBiLLNo.9032
Introduced by Rep. LORETO 8. ACHARON
AN
ACT   ESTABLISHING   THE   NATloNAL   FRAMEWORK   FOR   WATER   RESOURCE   AND   CREATING   THE
DEPARTMENT  0F  WATER  RESOURCES,  AND  THE  WATER  REGULATORY  COMMISSION,   DEFINING
THEIR MANDATES, POWERS AND FUNCTIONS, AND APPROPRIATING FUNDS THEREFOR
Be  it  enacted by  the  Senate  and  House  Of Representatives  Of the  Philippines  in  Congress
assembled:
CHAPTHR I
GENERAL PROVISIONS
SHCTI0N 1. Short Title. -This Act shall be known as the "National Water Act".
SEC. 2. Declaration of Policy. - Access to water is a basic human right. All water
belongs to the State which shall govern its development and utilization for the people.
It is hereby declared the policy of the State to ensure the provision of safe, adequate,
affordable and sustainable water supply and improved sanitation services, while maintaining
the protection, preservation and revival of the quality of the  country's water resources and
ecological balance.
In pursuit  of this  policy,  this Act  shall  have  the  principal  objective  of ensuring  and
accelerating universal access to water supply and sanitation services, in a regulatory regime
that  encourages  responsible  private  sector participation,  and  shall  foster  and  prioritize  the
establishment   of  infrastructure   and  public   works   that   adopt   innovative   solutions   and
intemational 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
interests.
SEC. 3. Definition of Terms. - as used in this Act:
a)   Bulk water supplier refers to any entity, natural orjuridical, whether public or private,
supplying or intending to supply large quantities of raw or treated water to buyers who
will use these for their own consumption,  such as industrial companies,  or for retail
distribution  to  consumers  such  as  water  service  providers  or real  estate  developers
managing their own distribution network;


b)   Envirormental 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: (1) disposal services which reflect the functions of
the natural  environment  as  an absorptive  sink for residuals;  (2) productive  services
which reflect the economic functions of providing natural resource inputs and space for
productionandconsunption,and(3)consumerorconsumptionserviceswhichprovide
for physiological as well as recreational and related needs of human beings.
c)   Flood control refers to methods, acts and protocols to be observed in order to prevent
and  reduce  tbe  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)  refer to  such  acts  of defining  and  determining the
appropriate methods, acts and protocols aimed at preventing and reducing the risk of
incuring loss of both life and property due to flood waters. Flood risk management
consists  of  a  cycle  of prevention,  mitigation,  adaptation,  preparedness  and  early
waming, response and recovery. The elements of FRM include:  integrating land use
plaming, and coastal zone management into water management, adopting a holistic
approachsothatFRMispartofwiderriskormulti-hazardmanagementofearthquakes,
landslides,  storm  surges;  managing risks  and uncertainty  as  a whole  so  not  only  it
€mitigates    hydrological    uncertainties    but    also    social,    economic    and   political
uncertainties on account of human behavior and the cultural dimensions of FRM.
e)   Gender equality refers to the principle asserting the equality of men and women and
their right to enjoy equal conditions realizing their full human potentials to contribute
to and benefit from the results of development, and with the State recognizing that all
human beings are free and equal in dignity and rights.
f)    Infrastructure and public works refer only to wholly or primarily water-related projects
anddoesnotincludeprojectsthatdonotfallwithinthepurviewoftheobjectives,power
anddutiesoftheDepartmentofWaterResourcescreatedunderthisAct;
g)   Integrated Water Resource Management (IWRM) refers to a systematic, collaborative
and  multi-stakeholder  process  which  promotes  the  coordinated  development  and
management of water,  land,  and related resources within geophysical boundaries in
order to maximize the resultant economic and social welfare in an equitable manner,
and without compromising the sustainability of vital ecosystems.
h)   Levels of water supply refers to  communal  sources of water described according to
location and size of the recipient human settlement as follows:
(1)Level1orthepointsourcesisaprotectedwelloradevelopedspringwithanoutlet
but without any distribution system, generally adaptable to rural and upland areas
where houses are thinly scattered, and is a facility which usually serves an average
of fifteen households
(2) Level 11 or the communal faucet system or stand posts is a system composed of a
watersource,areservoir,apipeddistributionnetworkandcommunalfaucetswhere
one,faucet serves 4 to 6 households and is generally suitable for rural and urban
fring; areas where houses are clustered densely to justify a simple piped system.


(3)Level111orthewaterworkssystemorindividualhousecormectionsisasystemwith
a  water  sources,  a  reservoir,  a  piped  distribution  network  and  household  taps,
suitable for densely populated urban areas.
i)    License refers to the Water Supply and / or Sanitation Services Operating License tpat
the  Water  Regulatory  Commission  is  authorized  to  grant  and  to  issue  to  service
providers.
j)LicenseereferstoaserviceprgvidertowhomalicenseisgrantedorissuedbytheWater
Regulatory Corrmission.
k)   Missionary  Water  Services  refer to  water  supply  or  services  to  areas  that  have  no
existing  safe  water  supply  and  services  due to  geographic  limitation or  absence  of
economic and market viability
I)    National Water Resources Management Plan OrwRMP) refers to a policy document
that contains the 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
utilizationofexistingwaterresourcesinlinewithnationaldevelopmentplans,policies
end programs in accordance with the IWRM framework. The NWRMP shall also a
water  infrastructure  development  program  for  all  waters  of the  country  as  well  as
providegeneralguidanceonhowthisshallbesupportedwithinanintegratedfinancing
framework  that  can  draw  public,  private  and  international  development  funding
sources.
in) Net Waste Load refers to the difference of the initial waste load of the abstracted water
and the waste load of the final effluent discharge of an industry
n)RegulatoryunitsrefertotheofficesestablishedunderSection20ofthisActwhichissue
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 the licensees may impose
o)   River basin refers to an area of land drained by a stream or body of fixed water and its
tributaries which have a common outlet for surface run-off
p)   River Basin Organization (RBO) refers to multi-stakeholder organizations which olan,
Coordinate, and monitor activities within a river basin cluster.
q)   Sanitation refers to the provision of facilities and services for the safe management of
human  excreta,  from  toilet  to  containment,  and  storage  and  treatment  onsite,  or
conveyance, treatment and eventual  safe end use or disposal,  and includes the safe
management of solid waste and animal waste.
r)    Sediment management refers to control of sediment erosion and deposition in rivers,
reservoirsandcoastalzonesthroughnon-structuralandstructuralmeasuresandcontrol
works


s)    Sustainable Development Goals (SDGs) also known as the 17 Global Goals refer to the
universalcalltoactiontoendpoverty,protecttheplanetandensurethatallpeopleenjoy
peace and prosperity by 2030 adopted by all United Nations Member States in 2015.
t)    Septage is the liquid and solid material pumped from a septic tank, cesspool, or other
primary treatment source.
u)   Septage management refers to provision of proper collection, treatment and disposal of
septage.
v)   Service Area refers to`the area covered by the water distribution system, sewerage, and
or septage management services.
w)  Service provider refers to any entity, natural or juridical, whether public  or private,
providing or intending to provide Levels 11 and 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-bone human or animal  wastes,  excluding  oil  or oil  waste,
removed   from  residences,   buildings,   institutions   and   industrial   and   commercial
establishments, together with such groundwater, surface waters and storm waters as
maybepresentincludingsuchwastefromvessels,offshorestructures,otherreceptacles
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
includingpunpingstations,1iftstationsandforcemains,serviceconnectionsincluding
other  infrastructure,  devices  or  appliances  appurtenant  thereto,  which  include  the
collection, transport, pumping and treatment of sewage to a point of disposal
z)   Sewer refers to pipes or such other works or structures which are built and constructed
to carry, transport and dispose sewage
aa) Social  inclusion  refers  to  the  process  of  improving  the  terns  for  disadvantaged
individuals and groups to take part in society
bb)Tndffreferstosuchanountswhichmaybechargedbylicenseesfortheirwatersupply
and sanitation services based on principles, guidelines and standards established by the
Department of Water Resources
cc) Water  Demand   Management   (WDM)   refers   to   any   method  whether  technical,
economic, administrative, financial or social that will accomplish one or more of the
following:
(1 ) Reduce the quality or quantity 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)Reducethelossinquantityorqualityofwaterasitflowsfromsource,throughuse,
to disposal;


(4)  Shift the timing of use from peck 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)WaterDistrictsrefertogovemment-ownedandcontrolledcorporationsorganizedunder
Presidential Decree No. 198, as amended, created primarily to acquire, install, operate,
maintain, and improve water supply and distribution systems for domestic, industrial
and municipal  uses  of residents  and to  provide,  maintain  and  operate  waste  water
collection, treatment, and disposal facilities within the boundaries of the district
ee) Water  pollution  refers  to  any  alteration  of the  physical,  chemical,  biological  or
radiological properties of a body of water resulting in the impairment of its purity or
quality.
fry  Water 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
territorialjurisdictionofthePhilippines
ggvyater Resources Regions refer to the contiguous clusters of river basins which are
groupedtogetheraccordingtothehydrologicalboundaries,physiographicfeatures,and
homogeneity in climate, whether or not they straggle different local government units,
for administrative purposes under the Department of Water Resources
hh) Water Service Provider (WSP) refers to the water district, any Local Government Unit
(LGU)-run water utility, Barangay Waterworks and  Sanitation Association @WSA),
cooperative and private sector entity that provides water supply services to any given
area
ii)   Water supply service refers to any activity comprising Levels I, 11, and Ill water supply
including bulk suppliers, suppliers to subdivisions and other water service providers.
CHAPTER 11
THE DEPARTMENT OF WATER RESOURCES
SEC. 4. The Department of Water Resources. - There is hereby created and established
the Department of water Resources, hereinafter referred to as the Department.
SEC.  5. Mandate of the Department. - The Department shall be the primary agency
responsible   for  comprehensive   and   integrated   identification  and  mapping   of  all   water
resources,  plarming,  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 impose Presidential I)ecree No.
1067  otherwise  known  as  the  Water  Code  of the  Philippines  and Republic Act No.  9275,
otherwise known as the Philippine Clean Water Act of 2004.
The  Department  shall  exercise  the  powers  and  functions  of the  defunct  Pasig  River
RehabilitationConrissioncreatedunderExecutiveOrderNo.54Seriesof1999andabolished
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)UpdateandtaketheleadintheoverallimplementationofthePasigRIverRehabilitation
Master  Plan,  which  shall  harness  the  Pasig  Rlver's  potential  for  transportation,
recreation,andtourismpurposeswhileundertakingtherehabilitationandrestorationof
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,
qs><1976  as  amended,  entitled Providing for the Revision of Republic Act No.  3931,
CommonlyKinownasthePollutionControlLawAndForOtherPuaposes,PDNo.274,
s.   1973  entitled,  Pertaining  to  the  Preservation,  Beautification,  Improvement  and
Gainful Utilization of the Pasig River, Providing for the Regulation and Control of the
Pollution of the River and its Banks in Order to Enhance its Development, thereby
Maximizing its Utilization For Socio-Economic Purposes and Other related laws.
SEC.6.GuidingPrinciples.-Inthepursuitofitsmandate,theDepartmentshallbeguided
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 goverrment, non-governmental 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.
@) Access to safe water supply and improved sanitation is a human right that needs to be
fulfilled and protected.
(c)  Integrated  Water  Resource  Management  (IWRM)  shall  be  adopted  as  the  basic
framework which is the coordinated development and management of water, land and
relatedsourceswithinhydrologicalboundariestooptimizeeconomicandsocialwelfare
without compromising the sustainability of vital ecosystems. The IWRM Framework
shall include an enabling environndent that utilizes proper policies, legal instruments,
and   institutional   frameworks   for   effective   implementation,   participatory,   and
collaborativewaterpolicyandmanagementdecisions,andmanagementinstrumentsfor
efficient use  of updated and accurate  data,  science-based decision  support  systems,


iii.
iv.
proper  information,   education,   communication  (IEC)  programs,   assessment  and
allocation  tools,  or regulatory  functions.  It  shall  observe  the  mutual  accountability
mechanism among stakeholders at the national, regional and global levels reinforcing
multi-stakeholder decision-making following a framework with specific, measurable,
attainable, relevant and timely actions.
(d) Each river basin has its unique characteristics relating to the physical, socio-cultural
and  other  aspects,  and  water  management  shall  be  performed  at  river  basin-level
involving all stakeholders at that particular river basin
(e)  Integrated and accurate data collection and analysis and the use of scientific decision
support systems shall be undertaken in water resources management including flood
modelling  and  waming  systems  that  are  essential  for  an  effective,  efficient,  and
sustainable water resources management system.
(I)  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
.,`
a) 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. Objectives of the Department. -The Department shall:
Promote and adopt water demand management as a national policy to ensure that water
is optimized, that water efficiency and conservation becomes a way of life, that the
recycling and reuse of water and treated wastewater are widely practiced, that water is
properly priced to encouraged efficient use and conservation and that rainwater, flood
waters, and run-offs are captured, or harvested, stored, and treated for future use.
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 mamer 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.
Strengthenandcoordinateintegratedwaterresourcesmanagementplanningandpolicy
making to ensure sustainable and fair allocation and efficient use of water resources
among competing uses and users.   .
Ensure that integrated water resources management is strongly coordinated with land
use and coastal and multi-hazard planning and management


V.
V1.
vii.
Vlll.
lx.
Develop  sustainably,  and manage water sources  and water resources towards water
security,takingintoconsiderationwater,landandrelatedresourcesaimedatincreasing
waterdependabilityfordifferentuses,optimizingeconomicbenefits,andsocialwelfare
without compromising the sustainability of vital environmental systems.
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
Ensure   that  the   strategy   for   water  resources   development   and   conservation   is
participatory,andthatplanners,policymakersandusersincludingcommunitymembers
are involved at all levels.
Develop   a   standardized   pricing   framework   for   water   use   that   accounts   for
environmental extemalities ; and
Ensure that all sources of water, including surface water, groundwater, rainwater and
floodwaters are identified, mapped, monitored, conserved and managed for productive
useandtheresultingwastewaterismanagedproperly,reusedandresponsiblydisposed
" following 'approved environmental standards
SEC.  8. Powers  and Functions of the Department. - The Department shall have the
following powers and functions :
Policymaking and Plarming
(a)EnsurethatlntegratedWaterResourcesManagement(IWRM)isadoptedasthe
strategicframeworkforstrategicpolicymakingandplanninginthecountryand
coordinate  the   implementation,  promotion,   revision  and   enhancement   of
IV"'
(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, anong 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,
affordableandsustainablewatersupplyandimprovedsanitationservicesforall
Filipinos
(d) Regularly update, every five years or as deemed necessary by the Departnent,
and  in  consultation  with  other  agencies   and  stakeholders,  the  NWRMP
following the IWRM frameivork 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
andcontroltomaximizeconservationandmultipurposeuseofwaterinthebasin
(I)  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)AssistandprovidetheNationalEconomicandDevelopmentAuthorityOVEDA)
with the required data and input from the water sector in the formulation of the
country'sshort-termandlong-termstrategicdevelopmentplansandactions,and
recommendtotheNEDABoard,theadoptionofgeneralpoliciesandguidelines
for water resources development
(i)  Review,  approve  and  provide  oversight  over  all  water-related  development
plans  and programs  of any agency within the  context  of the NWRMP,  and
overall national plans and programs
a)  Develop and implement, in coordination with other relevant agencies, effective
codes, standards, benchmarks, and reasonable guidelines to ensure the safety of
all public and private water structures in the country, and assure efficiency and
proper quality in the construction of water, sanitation, irrigation, hydropower,
flood control, and drainage infrastructure
(k) Ensure that gender equality, social inclusion, environmental protection, climate
resiliency,  and disaster risk reduction are integrated into  any water resource
managementplanning,policymaking,andthedesignandconstructionofwater
infrastructure
(1)Ensurethattheplanninganddesignofwaterinfrastructureconsidersthehighest
efficiency  and  most  appropriate  technology  and  quality,  in  accordance  with
national development obj ectives
(in)Review existing guidelines appropriate for private sector participation in the
water  sector  and  sut>mit recommendations  to  the  Public-Private  Partnership
(PPP) Center of NEDA and other concerned agencies to promote and enable
morepppsinthesector       .
(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


11.
EEiii I,
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, and 13 Chapter
11 of presidential Decree No. 856 otherwise known as the Code on Sanitation of
the Philippines
®) 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
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  into  consideration their equitable  distribution among
competing demands and determine the standards of beneficial and priority uses
of water in times of crises 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 proj ect identification, formulation and planning, and appropriate
sanctions to be imposed for non-compliance.
(d) Regularly review regulations prescribed by any government agency pertaining
to  water  use,  exploitation,  development  and  conservation  or  protection  of
waters, water resources, and watershed and basin areas with respect to this Act;
(e)  Impose  fees  or  charges  as  may  be  deemed  necessary  for  water  sources
conservation and protection, such as:
(1) Polluter's fee, which shall be based on the net waste load depending on the
wastewater charge formula pursuant to Republic Act No. 9275


(2) Raw water price, which shall take into account, among others, the scarcity
of water, and
(3) Appropriate payment structures for envirormental services
Ill.
®  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
available per water resources region
(i)  Maintain a database that will contain update relevant information on water data
which will be accessible by relevant and authorized users
¢.)  Develop and continuously update a computerized decision support system that
incorporates  data management  systems  relating  to  acquisition  and  database,
modelbaseintermsofphysicaldesign,planninganddecisionmodels,anduser-
friendly interface concerning graphical and visualization tools
(k)Conductandpromotespecialstudiesandresearchonwatereconomicsandother
water resources  development  and management  issues  and  concerns  such  as
climate   change,   weather   modification,   flood   monitoring   and   modeling,
environlnental quality, and desalinization, and
(I)  Raise public  awareness through information,  education  and  communications
programs,  and build capacities  for informed participation in water resources
management at the national and river basin level
Institutional Arrangements with Public Water Organizations
Develop  guidelines  including  rules  of partnership,  between  and  anong  the
Department,  fleld  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, strengthen
and support existing RBOs and monitor their activities
Develop materials for capacity building and training of prospective RBOs
Authorize its represerfuatives or any deputized agent to enter any property of
public  dominion  with  or  without  prior  notice  or  consent,  any  private  land,


1V.
V.
vi.
vii.
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
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
Respond  to  Consumer  complaints,  and  ensure  the  adequate  promotion  of
consumer interests
Deputize  agents,  whether  from  the  public  or private  sector,  to  assist  in  the
performance of any of the powers and functions of the Department
Appoint,   hire,   and   maintain   adequate   staff  and   persomel,   advisers   or
consultants with suitable qualifications and experience, as necessary, subject to
rules and regulations
J           ..r`
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 goverrment agencies,  universities,  academe and other
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)Coordinatewiththeconcemedandrelevantagenciesengagedinfloodcontrol,
flood risk management, and drought risk management; and
(d) Coordinate proactively with LGUs to ensure the integration of water resources
development   plans   into   their   comprehensive   land   use   plans   (CLUPs),
comprehensive development plans (CDPs), or provincial physical framework
and development plan (PPFDP)
V.
Other Functions
(a)  Create,  when  necessary,  water  resource  subsidiaries,  instrunentalities,  and
entities   to   engage   in  water  transmission,   water  distribution,   wastewater


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
domesticorforeign,relatingtoinvestmentandfinancingwater-relatedprojects,
under  such terms  and  conditions  as  the  Department  may  deem proper  and
reasonable subject to existing laws
(c)Exercisesuchotherpowersandfunctionsnecessaryorincidentaltotheeffective
administration` and management of the country's water resources.
SEC.  9.  Secretary  of  the  Department  of Water  Resources.  -  The  authority  and
responsibility for the exercise of the mandate of the Department and for the discharge of its
powerandfunctionsshallbevestedintheSecretaryoftheDepartment,hereinafterreferredto
as the Secretary, who shall:
(a)  Advise  the  President  on  the  promulgation  of executive  or  administrative  orders,
regulations,proclamationsandotherissuancesrelativetomattersunderthejurisdiction
€Of the Department
(b)EstablishthepoliciesandstandardsfortheoperationoftheDepartmentpursuanttothe
President's guidelines
(c)  Promulgate  rules  and  regulations  necessary  to  carry  out  the  objectives,  policies,
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, Regional and Assistant Regional Directors, in
accordance with Civil Service laws, rules and regulations; and
¢)  Perform such other duties and responsibilities as may be provided by law.
SEC.10. Office of the Secretary. -The Office of the Secretary shall be composed of the
Secretary, Undersecretary, Assistant Secretary, and the Secretary's immediate staff.


SEC. 11. Undersecretaries. ~ The Secretary shall be assisted by not more than five (5)
Undersecretaries, who shall be appointed by the President upon the recommendation of the
Secretary namely: Undersecretary for Resource Regulation and Governance, Undersecretary
for  Inland  Waters  and  Water  for Agriculture,  Undersecretary  for  Resource  Development,
Undersecretary for Plarming and Policy, and Undersecretary for Missionary Water, Indigenous
People and Special Concerns.
The Secretary is hereby authorized to delineate and assign the respective functional areas
of responsibility of the Undersecretaries in accordance with the mandate and objectives of the
Department  Provided,  that  no  Undersecretary  shall  be  assigned  purely  to  administrative
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  all  the   assigned  units   for  which  the
Undersecretary is responsible to the Secretary; and
(c)Performsuchotherfunctionsdeemednecessaryasmaybeassignedordelegated.bythe
i.Secretary to promote efficiency and effectiveness in the delivery of public services or
as may be required by law; Provided, that the Undersecretary for Planning and Policy
shall, in coordination with the Planning and Policy Service, be primarily responsible
for advancing current efforts in attaining the ultimate goal of universal access to water
supply and sanitation systems, and sustainable management of water resources under
the SDGs, and the integration of water, energy, environment and food security.
SEC.  12. Assistant  Secretaries.  - The  Secretary  shall  be  assisted by  six  (6) Assistant
SecretariestobeappointedbythePresidentofthePhilippinesupontherecommendationofthe
Secretary:  one  each  for  Policy  and  Planning  Service,  Decision  Support  System  Service,
Resource Regulatory Service, Comptrollership and Financial Management Service, Legal and
Legislative Service, and Administrative and Human Resource Management Service.
No  person  shall  be  appointed  Secretary,  Undersecretary  and Assistant  Secretary  of the
Department  unless  the  person  is  a  citizen  and  resident  of the  Philippines,  of good  moral
character,  of proven  integrity,  competence  and  expertise  in  water  resource  management;
Provided, that at least one (1) of the Undersecretaries and two (2) of the Assistant Secretaries
shall be career officers.
SEC.13.OrganizationalStructure.-TheDepartmentshallbecomposedofthe following
organizational units :
(a)  Department Proper. -The Department shall consist of the Office of the Secretary, the
Offices of the Undersecretaries and Assistant Secretaries, the Intemal Audit Office, the
Public Affairs Office, the Water Pollution Adjudication Board, the Planning and Policy
Service,  Decision  Support  System  Service,  Administrative  and  Human  Resource
Service,  Legal  and Legislative  Seivice,  Comptrollership and Financial Management
Service, Resource Regulatory Service, and the Water Resources Regional Office


(b)Attachedagencies.-TheDepartmentshallexerciseadministrativesupervisionoverthe
following agencies for purposes of policy and program coordination, monitoring and
evaluation:
(1) Local  Water  Utilities  Administration  (LWUA),   whose  mandate,  powers,   and
functions are defined under Presidential Decree No.  198, otherwise known as the
Public  Water  Utilities  Act  of  1973,  as  amended  shall  be  transferred  from  the
Department of Public Works and Highways 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,
persomel training, accounting and flscal practices for local water utilities;
ii.   Furnish technical  assistance  and persormel training prograns  for local water
utilities;
iii.   Monitor and evaluate local water utilities; and
iv.   Effect system integration, joint investment and operation, distinct amexation
and de-amexation whenever economically warranted as amended by Sec. 22 of
€f` `         Presidential Decree No. 768.
(2) The  Metropolitan Waterworks  and  Sewerage  System  (MWSS),  whose  mandate,
powers  and  functions  are  defined  under  Republic  Act  No.  6234,  as  amended
entitled, An Act Creating the Metropolitan Waterworks and Sewerage System and
Dissolving  the  National  Waterworks  and  Sewerage  Authority;  and  For  Other
Purposes,  shall be transferred from the DPWII and attached to the Department:
Provided,   tha  the   MWSS   shall   continue   to   facilitate   the   exercise   by   the
concessionaires   of  their  responsibility,   cany   out  accounting   and  notification
functions;  monitor,  report,  and  administer  loans,  perform  related  functions  in
comection with existing projects, manage and dispose its retained assets; manage
and operate the Umiray-Angat Transbasin Proj ect
(3) The  National   Irrigation  Administration   qulA),   whose   mandate,   powers   and
functions  are  defined  under Republic Act No.  3601  as  amended  by  Presidential
Decree No. 552 and Presidential Decree No.1702;
(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and
functions are defined under Republic Act No. 4850, as amended entitled, An Act
Creating   the   Laguna   Lake   Development  Authority,   Prescribing   its   Powers,
Functions, and Duties, Providing Funds Therefor and For Other Purposes shall be
transferred from the DENR and attached to the Department.
The  LLDA  shall  continue  to  serve  as  the  lake  management  and  development
authoritysimilartoamulti-stakeholderriverbasinorganizationandshallensurethe
implementation of the Laguna. Lake Master Plan which  shall be updated by the
Department to ensure alignment with the NWRMP


dry   other   agency   performing   water   resources   management,   conservation   and
protection  functions  may  be  transfen.ed  to  the  Department  as  the  President  deems
necessary.
(c)  Offices, Functions, and Persormel to be Completely Subsumed under the Department.
- The following offices with their powers, functions, persormel, applicable funds and
appropriations,   records,   equipment   and  property,   shall   be   subsumed  under  the
Department:
(1) The National Water Resources Board quwRB) with all its divisions and sections
whose mandate, power 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
provided in Executive Order No. 510 and Executive Order No.  816,
froctions are
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
(5) The Water  Supply  and  Sanitation Unit of the  Department of Interior  and  Local
Government (DILG); and
(6) The Water Quality Management Section of the Environmental Management Bureau
(EMB) of the DENR
(d) Functions  to  be  transferred  to  the  Department.  -  The  following  functions  of the
respective agencies, bureaus and units shall be transferred to the Department:
(1) The  hydrological  surveys  and  groundwater mapping  function  of the  Mines  and
Geosciences Bureau (MGB) of the DENR
(2)Thehydrologicalsurveysmonitoringstreamflowandwaterdatacollection function
of the Bureau of Design and Bureau of Research 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 OJSSMP) by the DPWH
(5) The flood management plaming 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 Services. -The Department shall create the following support services:
(1) The Plaming and Policy Service shall provide the Department with the capability
to  undertake  water  infrastructure  development planning  and prograrrming,  and
shall exercise the following functions:


rfr- `
i.    Advise the secretary on all matters relating to water resources planning
ii.    Assist the Undersecretary for Planning and Policy on all maters related to the
specific functions of the position
iii.     Formulate  strategies  and  priorities  for  water  resources  management  and
development  consistent  national   development  objectives,   and  initiate   or
undertake relevant surveys for development plaming.
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  water
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,
plarming
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.    Performs such functions and activities, as may be mandated by law, which are
necessary for the effective attairment of the abovementioned objectives
(2) The  Decision  Support  System  Service  shall  provide  the  Department  with  water
resource   management   tools   and   computerized   decision   support   system   that
incorporates a data management system relating to acquisition and database and
model t>ase in terns of physical design, planning and decision models including
services related to networking,.data management and information and knowledge
or leaming management systems for administrative and non-technical support. It
shall  provide  the  Secretary  timely  reports  on  the  status  of various  Department
projects and activities. For this puapose, 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 fom 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
1V.
V
analysis
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 DDS is composed of:  I) a measurement or data acquisition system; 2)
information or database management system;  3) analytical and numerical
models for design, plarming, decision or evaluation purposes, and 4) a user-
friendly interface which includes graphical interface or visualization tools
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 models for major rivers
e)   Optimization-simulation      management      models      for      watershed
conservation,   conjunctive   surface   and   groundwater   use,   irrigation
scheduling,    normal    and   emergency   operations    of   multi-purpose
reservoirs; and
I)    Water quality and ecological models
vi.       Develop    and   administer   the   management    information    system    and
knowledge systems of the Department to:
a)   Retrieve, process, and monitor information on all projects and activities
in the web portal
b)   Conduct   and   apply    systems   and   process    engineering,    software
development, software configuration management
c)   Develop and manage its coxporate database, unified database for water
industry, data warehouse, and 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 communication services and data exchange; and
e)   Manage the literacy and training services of the Department on various
ICT   and   Knowledge   management   (KM)   tools   and   applications,
including information and knowledge management
(3) The  Human  Resource  and Administrative  Service  shall  provide  the  Department
with   services   relating   to   human  resources   development,   personnel,   records,
facilities  maintenance,  medical  and  dental,  security,  property  and  procurement
services, and shall exercise the following functions:
i.   Advise the Secretary in all matters relating to intemal 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 award systems, and health and welfare systems
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    cost-effective    property
procurement system and facilities and coordinate or otherwise interface with
other relevant  agencies,  whether  government  or private,  for the  purpose  of
developing or upgrading the system
v.  Develop,  establish  and  maintain  an  efficient  and  effective  security  system
covering among others, personnel, physical installations, facilities, equipment,
documents, and materials including the conduct of security investigations
vi. Coordinate  with  the  appropriate  government  agencies  for  a  more  efficient
conduct of administrative processes
vii.  Develop, establish, and maintain an efficient records system
viii. Provide assistance in its area of specialization to the Department Proper, bureaus
and regional and water district offices and, when requested, to the government
agencies and corporations attached to the Department; and
ix. Perform such other related functions and activities which are necessary for the
th`         effective management of the resources of the Department, including its human
resources
(4) The  Legal  and  Legislative  Research  Service  shall  provide  the  Department  with
services on such legal affairs as contract letting and litigation, legal and legislative
research, complaints and investigation, 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  the  administrative
charges against offices and employees of the Department
iv. Exercise functional jurisdiction over the legal staffs of Regional Offices
v.  Provide  legal  assistance to  the  Department Proper,  the bureaus  and regional
offices and when requested, the attached coxporations
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  anong  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.  Performs such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives
(5)  The   Comptrollership   and   Financial   Management   Service   shall   provide   the
Department with coordinated services relating to financial systems and procedures,
budget, cash, accounting and 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, flnancial  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 standards cost of the Department, bureaus, and
gr <          regional offices.
v.   Provide assistance in its area of specialization to any unit of the Department and,
when  requested,  to  goverrment  corporations  and  councils  attached  to  the
Department; and
vi.  Performs such other related functions and activities which are necessary for the
effective financial management of the Department
(6) The Resource Regulation Service shall provide the Department with services  for
the effective regulation of all water-related services and activities and shall exercise
the following functions:
i.       Advise the secretary on all matters relating to resource regulations
ii.     Determine,  grant and regulate water rights  for the appropriate,  optimal  and
sustainable use of surface and ground water
iii.    Determine  and  evaluate  waterworks   and  sewerage  licenses,   and  submit
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  with  future  rules  and  regulations  which  the  Department  shall
promulgate
v.      Adjudicate water use conflicts
vi.    Perform such other related functions and activities which are necessary for the
effective regulation of water-related services
(7)ThelntemalAuditServiceshallregularlyconductacomprehensiveauditof 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,  goverrment  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 other related functions and activities, as may be mandated by law
which  are  necessary  for  the  effective  performance  of the  abovementioned
objectives.
(8) The Public Affairs Service shall enhance relations with all stakeholders including
the media, for the effective dissemination of information relating to eater-related
issues,   including  important  announcements   on  policies   and  activities  of  the
Departmentthatisofinteresttothegeneralpublic.Itshallensurethatwomen,men,
elderly, and people with disabilities shall be consulted, organized and take active
t^.  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.       PublicAwareness
a.   Advise the Secretary on matter 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  goverrment
public information prograns
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 on the content of
the communication materials for dissemination to print and broadcast
media
f.    Establish and maintain linkages with tri-media and a presence in social
media
9.   Coordinate the conduct of interviews and news conferences.
h.   Make  public  amouncements  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   goverrment
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


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
111.          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
c.   Performs  such  functions  and  activities,  as  may  be  mandated  by  law,
which    are    necessary    for    the    effective    performance    of    the
abovementioned obj ectives
I:iE
®  Bureaus. - The Department shall create bureaus which shall 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 Bureau Director.
(1)        Bureau ofFlood control and Drainage shall plan and design flood control and
drainage   structures   and   facilities   in  accordance  with  technical   standards,
guidelines and manuals. For this purpose, it shall have the following duties and
responsibilities:
i.       Formulate policy, strategies and programs on flood risk management in the
context of integrated flood management (IFM) which integrates water,land,
coastal   zone   and   multi-hazard   management.   In   integrating   land   use
planning  and  water  management,  the  Department  shall  harmonize  and
synthesize  plans  to  enable  the  sharing  information  between  land  use
planning  and  water  management  authorities.  IN  this  regard,  a  holistic
approach shall be adopted by making the IFM a part of a wider risk or multi-
hazard  management  system  that  includes  earthquakes,  landslides,  fires,
tsunami and other calamities of the same gravity or nature;
ii.       Integrate  climate  change  and disaster risk reduction and management in
policies and plans
iii.      Prepare master plans of flood management and drainage in river basins in
coordination  with   concerned  water  resources   region   and  river  basin
organizations
iv.       Prepare master 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 infrastructure 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.       Performs `such  related  activities  which  are  necessary  for  the  effective
performance of its functions
(2)        Bureau of water Quality Management shall supervise and exercise control over
all  aspects  of water  quality  management  to  ensure  the  sustainability  of the
country's water resources and the protection of the environment. It should take
into  account  proper  and  integrated  treatment  of freshwater  and  wastewater
within  the  whole  process.  For  this  purpose,  the  bureau  shall  exercise  the
following functions :
ap-.         i.      Establish  water  quality  guidelines  for  freshwater  and  coastal  or  marine
waters  as  basis  for  classifying  water bodies  in the  country.  Specifically,
develop water quality indices or composite metrics to measure the quality
status and health of natural water bodies in relation to ecological integrity
and function.
ii.    Establish  effluent  standards  for  point  discharges  to  receiving  bodies  of
water.
iii.   Establish internationally accepted procedures for sampling and analysis.
iv.   Prepare an integrated water quality management fi.anework;
v.    Prepare the 10-year water quality management plans for each water quality
management areas as part of the RIver Basin Master Plans and in support
oftheNW"P;
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 fee for all permittees;
x.    Monitor the  compliance  of water discharge permittees  with the  effluent
standards;
xi.   Regularly monitor the water quality of major water bodies in the country
and analyze the data to identify possible sources of pollution;
xii.  Issue notices of violations and / or cease and desist orders for those found
in violation;
xiii.File   the   needed   cases   against   violators   with   the   Water   Pollution
Adjudication Board (WPAB)
xiv. Serve as the secretariat of the WPAB;


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 Water  Resources  Regional  Office  (WRRO)  shall  be  organized  per  water
resources  region  and  shall  be  responsible  for  implementing  the  mandates,
powers, and duties of the Department at the field level, except for policymcking
which will be vested solely in the Department. The formulation of the master
plan for the nearby river basins such as Pasig-Marikina-Laguna Lake-Cavite,
shall be the responsibility of the Department.  Each WRRO  shall perform the
following duti`es 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 Franework Plan.
ii.    Advocate  and  strongly  support  the  creation  and  functioning  of multi-
stakeholder river basin organizations (RBO) and serve as the secretariat of
the said RBOs;
iii.   Undertake   and   evaluate   the  planning,   design,   and  work   supervision
functions and the Department for the water infrastructures for the region
iv.   Ensure   the   implementation   of   laws,   policies,   prograns,   rules   and
regulations regarding the abovementioned infrastructures as well as public
and private physical structures;
v.     Provide technical assistance related to the water-related functions of other
agencies within the region especially the local government;
vi.   Coordinate with other departments, agencies, institutions and organizations,
especially  local  goverrment units  within the region  in the plarming  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. Performs 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 (WRRO) 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 Warter 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 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, (2) techpical assistance to the River
Basin Organizations (RBO) within the water resources region.


SEC.  14. Water Pollution Adjudication Board. - There is hereby created a Water
Pollution Adjudication Board under the Office of the Secretary. The Board shall be composed
of the Secretary as Chairperson, two (2) Undersecretaries as 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 assure 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, AI Act  Creating the National Water and Air Pollution Control  Commission,
Presidential Decree No.  984 entitled, Providing for the Revision of Republic Act No.  3931,
Commonly Known as the Pollution Control Law, and For Other Purposes, particularly with
respecttoSection6,letterse,f,g,j,k,andRepul)1icActNo.9275.TheBureauofwaterQuality
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 0F THE DEPARTMENT
-.
See. 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
consistencyofstandardsandtargets,aswellasthecomplianceofpermitteeswith
mandated standards;
(b)     The Department of Envirorment and Natural Resources (DENR) s.hall continue
to have primary authority and responsibility for protecting the environlnent and
managing the country 's watersheds;
(c)     The Department of Energy (DOE) and the National Power Corporation qupc)
shall continue to have primary authority and responsibility for establishing and
operatinghydropowerplants,butshallensurethathydropowerplantdevelopment
plans are consistent with the National Water Development 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 and
Management Council OVDRRMC) 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 Depatment;
(f)      The Department shall coordinate with the climate change commission (CCC),
PhilippineAtmospheric,Geophysical,andAstronomicalServicesAdministration
(PAGASA),   and   National   Mapping   and   Resource   InforTation   Authority
OrAMRIA),  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
ensue 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. National Water Sector Policy Board. - The National Water Sector Policy
Board  shall  be  created  and  shall  be  headed  by  the  Secretary  of the  Department  of Water
Resources with the Secretary of the National Economic 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 policymcking, coordination, integration, supervision, monitoring and
evaluafron 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, and submit
proposals to restore normalcy in the affected areas;
(d) Ensure a multi-stakeholder participation in the development, updating and sharing
ofinformationsystemaspolicy,planninganddecision-makingtoolsconsistentwith
IV".
SEC. 18. Transfer of RIghts and Obligations. - The Department shall, by virtue of
this Act,  be  subrogated to  all the rights  and  assume  all the  obligations  of the  government
agencies and units whose powers and functions have been subsumed, absorbed, transferred or
attached to the Department in accordance with the Rules and Regulations of the Commission
on Audit (COA), and the Civil Service Commission, and other applicable laws. The transfer of
powers rand functions as herein provided shall take effect within six (6) months of effectivity
of this Act. As such, all affected agencies, offices, units shall continue to function under their
present mandates.
CHAPTER IV
WATER REGULATORY COMMISSION
See. 19. Water Regulatory Commission. -There is hereby created and established as
an  independent,   quasi-judicial  regulatory  body  to   be  knoun  as  the  Water  Regulatory
Commission, hereinafter referred to as the Commission, which shall be organized within one
hundred and 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 Regulatory Units. - The regulatory units of the Commission shall be
composed of the central regulatory un.t 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) provides service to
more than one province; and (b) are owned, operated and / or maintained by special economic
zones and Metro Manila concessionaires.
The regional regulatory units  shall be established by the Commission in accordance
with this Act and the rules, regulations, guidelines, and standards that the Commission shall
issue.
SEC.  21.  Powers  and Functions  of the Commission.  - The  overall  authority  and
powersJt)f the Commission shall cover and apply to all service providers, whether private or
public, providing or intending to provide levels 11 & Ill water supply, including suppliers to
subdivisions and 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 power 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
limitations,  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  armual  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  puaposes,  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  licenses  as  may  be
necessaryfortheeffectiveandefficientexerciseofitsduties,functions,powersand
responsibilities;
(i)  Investigate, motu propio or upon a written complaint, any matter concerning the
operation  of the  service  and  issues  on price  manipulation  and  anti-competitive
behavior;
a)  Impose penalties and fines  against any  licensee  or against its  owners,  directors,
officers, agents or representatives for any violation of this Act, or of the license,
order, rule, regulation or requirement issued by the Commission;
(k)RequireanylicenseetopaytheactualexpensesincuredbytheCommissioninany
investigationifitshallbefoundthatalicenseeviolatedanyprovisionofthisActor
of the license, order, rule, regulation or requirement issued by the Commission;
(I)Advise,apprise,andcoordinatewithotherrelevantagenciesofthenationalorlocal
govemmentinanymatterrelatingtowatersupplyandsanitationservices;
(in)Deputize  agents,  whether  from  the  public  or  private  sect.or,.  to  assist  in  the
performance of any of the powers and functions of the Commission;
(n)Appointaninterimortemporarymanagementcommitteeuponappealandafterdue
hearing,toensurecontinuityofserviceincasealicenseefailstomeetconditionsof
the license and the concerned Regulatory Unit falls or refuses to appoint an interim
€~.   management committee as provided in the following section;
(o) Appoint, hire and maintain adequate staff and persomel, 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)Performssuchotherincidentalpowersandfunctionsasmaybenecessarytoattain
the objectives of this Act.
SHC.22.PowersandFunctionsoftheRegulatoryUnits.-TheRegulatoryUnitsof
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)Imposefines,chargesandotherpenaltiesuponanyproviderand/oritsofficersand
stockholderswhoshallfailorrefusetoregisterorobtainalicensepriortooperation
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
waterandsewerageandseptagemanagementtariffs,ratesandchargesthatlicensees
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  motu  propio  price  manipulation  and  anti-competitive
behavior;


(g) Investigate  accidents  directly  or  indirectly  arising  from  or  counected  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  rate  of service  provision  entered  into  by  service  providers  upon
petition or motu proprio 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  percentage  of  gross  revenue
accruing in relation to the licensed activities, and reasonable fees and surcharges as
maybenecessaryforachievingthepurposes,powersandfunctionsoftheregulator;
(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;
(I)  Amend, modify, suspend or revoke any license issued by them, after due notice and
hearing, on any of the following grounds:
(1)   When the facts and circumstances on the strength of which the license was
issued have been materially misrepresented or have materially changed;
(2)   Where the licensee has failed to meet or comply with terms, conditions, and
performance targets, including but not limited to service expansion, that may
have been set in the license;
(3)   Where the licensee is found to be manifestly inefficient in the operation of or
provision of water supply and sanitation services in its area, or
(4)   When the licensee thereof has violated or 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.
SEC. 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 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 in the field of law, business, commerce, finance
or  public  administration,  water  or  utility  economics,  management  or  physical
engineering services, hydrology and other related services, with at least three (3)
years of actual and distinguished experience in their respective fields of expertise:
Provided that out of the four (4) members of the Commission, at least one (1) shall
be a member of the Philippine Bar with at least ten (10) years of experience in the
active practice of law, and at least one (1) shall be a certified public accountant with
at least ten (10) years of experience in active practice.
(b) The term of office of each member of the Commission shall be  seven (7) years:
Provided, That among the members first appointed, the Chairperson shall serve for
a period of seven (7) years, fro (2) members shall serve for five (5) years, and the
other two (2) members shall serve for three (3) years: Provided further, That any
member whose term  has  expired  as  specified herein  shall  serve  as  such until  a
successor shall have been appointed and qualified: Provided furthermore, That any


appointment  to  fill  a  vacancy  in  the  Commission  arising  from  death,  removal,
retirement  or resignation  shall  be  made  only  for the  unexpired  term:  Provided
fmally, That in no case shall any member serve for more than seven (7) years in the
Commission.
(c)  The Corrmission shall meet as often as may be necessary on such day or days as
the  Chairperson  may  fix.  The  presence  of at  least  three  (3)  members  of the
Commission shall constitute a quorum, which shall be necessary for the transaction
of any business. The affirmative vote of majority of the members of the Commission
where  a  quorum  is  present  shall  be  necessary  for  the  adoption  of any  order,
resolution, decisions, or other act of the Commission in the exercise of its quasi-
judicial functions.. Provided, That in promulgating rules, regulations, guidelines and
in  exercising  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
appointment of all members of the Commission, the Chairperson shall determine
and establish the organizational structure and plantilla positions necessary to cany
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
{f`t   plantilla positions  of the  Commission  shall be  filled by  regular appointments  in
accordance   with   Civil   Service   law,   rules   and   regulations.   Members   of  the
Commission shall enjoy security of tenure and shall not be suspended or removed
from office except forjust cause as specified by law.
(e)  The Chairperson and members of the Commission or any of their relatives within
the fourth civil degree of consanguinity or affinity, legitimate or common law, shall
be prohibited from holding any interest whatsoever, either as investor, stockholder,
officer or director, in any company or entity engaged in provision of water supply
and distribution, septage management and sewerage services and must, therefore,
divest through sale or legal disposition of any and all interest in the water sector
upon assumption into office.
SEC. 24. Secretariat of the Commission. - 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-viz their respective annual
performance plans and targets;
(d) Malntaln a database on water s.upply 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. Executive Director. -The Commission shall appoint an Executive Director who
shall  head  the  Commission  Secretariat,  keep  and  maintain  the  official  records  of  the
Commission; coordinate and supervise the activities of the different operating units under the


Commission;andperformssuchfunctionsasmaybeassignedbytheChairpersonand/orother
members of the Commission.
SEC. 26. Compensation and Other Emoluments. -The compensation of the members
of the  Commission and  its  staff shall  conform to provisions of Republic Act No.  67\58  as
amended, otherwise known as the Compensation and Position Classification Act of 1989.
CHAPTERV
REGISTRATION AND LICENSING
SEC. 27. Registration and Licensing of All Water Supply and Sanitation Services.
-All water supply and sanitation services 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, shall 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,  qualifications, requirements,  and procedure for the grant and revocation of licenses
including the standards and perfomance 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 or
sanitation service provider shall commence or conduct the business of providing water supply
and sanitation services without first obtaining a license.
Concessionagreementsandothercontractsforwatersupplyprovisionandwatersanitation
and treatment services curently 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. Conditions of License. -The Commission of the concerned regulatory unit, may
impose such conditions on the licensee, as it may deem necessary, such as:
(a)  Tariffs, rates and charges that may be imposed from its customers or consumers
(b) Term fixing the duration of the privilege
(c) `Grounds for modification, suspension or cancellation of the license
(d) Minimum technical performance and service level standard
(e)  Expansion targets and service level improvements over time
(I)  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  amual  perfomance  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),  Certificate of Public  Convenience and Necessity
(CPCN), issued by NWRB, or Certificate of conformance (CoC), issued by LWUA, to convert
their existing certificates into licenses to `operate in accordance with Sec. 27 herein.
All existing providers of water supply and sanitation services without a legal and valid
Certificate of public Convenience, Certificate of public Convenience and Necessity, 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. Rights and Duties of Licensees. -
(a)  cry 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:
(1) Foster  the  maintenance  and  development  of efficient,  coordinated,  and  viable
operation of their licensed activities;
(2) Ensure that their water supply and sanitation services are provided in a diligent,
conscientious, and workman like manner, in accordance with applicable laws, rules
andregulationsissuedbytheCommissionandthegenerallyacceptedstandardsand
practices of the water supply and sanitation industry; and
gr{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
specifled 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
discontinuewatersupplyandsanitationservicestoacustomerifsuchcustomerdefaults
in the payment of fees due to the licensee for the water supplied or sanitation services
provided, and for acts ofpilferage 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:
(1) Publish the  tariff and  other  charges  approved  by  and  the  terms  and  conditions
imposed  by  the  Commission  for  the  provision  of water  supply  and  sanitation
services;
(2)Prepare,withinthree(3)monthsfromtheissuanceofalicense,inconsultationwith
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)discormectionorsuspensionofserviceincaseofnon-paymentoftariffs
and / or other charges, or acts of pilferage, and (c) recommendation and recovery of
arrears in tariffs and other charges.
(3)Maintainfinancialaccountsinaccordancewiththemannerandprocedurespecified
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. Setting Tariffs, Rates, and Other Charges. - Regulatory Units shall establish
tariffs, rates and other charges which are fair and reasonable, and ensure economic viability
and a fair return on investments.
Tariffs, rates, and charges shall be based on and consistent with a rate setting methodology
that the Commission shall, after due consultation, define and publish, taking into account the
following, anong others :
(a) Reasonable and prudent capital and recuring 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
(I)  Administrative simplicity
Tinffs, 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. Direct Access. -Fifty-one (51 %) percent of the registered water consumers
inamurlicipality,cityorprovincemaypetitionfordirectaccesstowaterfromanywaterservice
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 Efficiency and Management of Systems.
- The Commission shall promote imovative schemes such as the consolidation or integration
of water supply and sanitation services, or providers in the same service area, where it shall
result in improved efficiency, service expansion and lower costs.
To this end, the Commission shall establish and issue such rules and guidelines as may
be  necessary  to  (a)  create  incentives  to  encourage  efficiency  and  service  expansion;  (b)
establish the standards and targets that service providers are required to meet; and (c) define
the fines and penalties that shall be imposed for failure to meet such standards and targets.
CHAPTER VI
QUASI-JUDICIAL FUNCTIONS OF THH COMMISSION
SEC. 33. Proceedings Before the Commission. - For the purpose of any investigation,
inquiry 6r proceeding, the Commission shall:
(a)  Issue subpoena duces tecum and subpoena ad testificandum;
(b) Appoint hearing officers to hear and receive evidence on behalf of the Commission;
(c)  Cite any person or party for contempt for refusal to appear, testify, or comply with an
order of the Commission on any matter that is the subject of an investigation, inquiry
or proceeding before the Commission;
SEC. 34. Orders and Decisions of the.Commission. -Any order, resolution, or decisions
of the Commission shall be promulgated promptly, expeditiously, reasonable, 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
appealedtotheCoutofAppealswithinfifteen(15)daysfromreceiptofnoticeofsuch
order,   ruling   or  decision:   Provided,  That  orders,   rulings,   and   decisions   of  the
Commission approving tariffs, shall be immediately executory and may be suspended
only upon appeal and filing of a bond, in an amount to be fixed by the Commission, to
answer for damages Qccasioned by the suspension or stay of execution of such orders,
rulings and decisions.
(b) No injunction may be issued by any coot or administrative agency to restrain any
proceeding before, or the implementation or execution of any order, ruling or decision
oftheCommission,exceptonthebasisofaquestionoflawbroughtbeforetheSupreme
Court on certoriari.
(c)  Any act or decision of the Commission shall not be invalidated merely because of a
defectorirregularityin,orincormectionwith,theappointmentorvacancyintheOffice
of the Chairperson or any other member of the Commission.
® `                                              CHAPTER VII
INTHRDEPARTMENTAL RELATIONS WITH THE COMMISSION
SEC. 36. Interface with Other Sector Regulators. -
(a)  The  DENR  shall  continue  to  exercise primary jurisdiction over programs  aimed  at
protecting the envirorment 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)shallcontinuetoexerciseprimaryjurisdictionoverthedeterminationand
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 water
SEC. 37. Transfer of RIghts and Obligations. - The Commission shall, by virtue of
this Act; be subrogated to all the rights, and assume all the obligations, of the Water Utilities
Division of the NWRB, the regulatory offices of the MWSS and the LWUA, the regulatory
unitsofallspecialeconomiczones,andallothergovemlnentagenciesandunitswhosepowers
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, persomel,
records,propertyandequipment,asmaybenecessary.Thesameshallapplytoagencieswhich
have been attached to the Department by virtue of this Act.
I


All agencies transferred, subsumed, and attached to the Department, shall continue to
functionundertheirpresentmandatesuntilthesix-monthtransitionperiodmandatedunderthis
Act shall have lapsed. The heads of the affected agencies shall continue to serve until replaced.
Allrightsandobligationsoftheaffectedagenciesareherebytransferredtoandassumed
bytheCommission,andshallbeacteduponinaccordancewiththerulesandregulationsofthe
Commission on Audit and other pertinent laws, rules, and regulations.
Snc. 38. Absorption or Separation from Service of Employees of the Subrogated
Agencies.-ThecurrentemployeesoftheWaterUtilitiesDivisionoftheNWRB,theregulatory
offices of the MWSS and LWUA, the regulatory units of all special economic zones, and all
other  goverrment  agencies  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
withexistinglaws,andthosewhoarequalifiedtoretireshallbeallowedtoretireandbeentitied
to all benefits under existing retirement laws.
SEC. 39. Water Trust Fund. - There is hereby created a Water Trust Fund in the
BureauofTreasury.Allnon-taxrevenues,includingrawwaterpricing,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  govemment's  general  revenues  and  shall  be
automaticallyappropriatedtotheDepartment.Proceedsfromthetrustfundshallbeutilized for
water development, water sanitation and waste water treatment and management, and water
sustainability programs and projects authorized under this Act: Provided, that a maximum of
ten percent (10%) of the total income generated from raw water extraction shall be given as
share of the concerned local government unit or indigenous peoples (IP) community who own
the specific areas or land where the raw water was sourced.
CHAPTER VIII
FINAL PROVISIONS
SEC.40.ApplicabilityofEaseofDoingBusinessLaw.-Theprescribedprocessingtime
providedunderSection9.bofRepublicActNo.11032,otherwiseknownastheEaseofDoing
Business and Efficient Goverrment Service Delivery Act of 2018,  shall be applicable to all
agenciesandLGUscoveredunderthisActparticularlyonaccessinggovemmentservices.
SEC. 41. Transitory Provisions. - 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. Appropriations. - The amount necessary to cover the initial implementation of
this Act shall be charged against the current 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. - Within one hundred and eighty days
(180)  from  the  effectivity  of this  Act,  the  Department,  NEDA,  DBM,  DENR,  CSC,  in
consultation with concerned government agencies, the Presidential Legislative Liaison Office,
shallpromulgaterulesandregulationsfortheeffectiveimplementationofthisAct.
SEC. 44. Separability Clause. - If any reason, any portion or provision of this Act shall
beheldunconstitutionalorinvalid,theremainingprovisionsnotaffectedtherebyshallcontinue
to be in full force and effect.
SEC. 45. Repealing Clause. -(a) the following provisions are hereby repealed:
(1) Section 3 (h) and Section 12 on the provision with respect to fixing of water rates and
sanitation  service  fees,  Section  3  (n)  on the  provision with respect to  regulation  of
waterworksanddeepwells,andSection3®)ontheprovisionwithrespecttoregulation
of waterworks and sanitation systems in privately owned sul]divisions of Republic Act
6234entitled,AnActCreatingtheMetropolitanWaterworksandSewerageSystemand
rfBissolving 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
otherwiseknounastheProvincialWaterUtilitiesActof1973,asamendedbyLetterof
Instruction No. 700 - Providing Measures to Control And Regulate Increase in Water
Rates,LetteroflnstructionNo.744-RelativetoReliableWaterSupplyatReasonable
Rates  in  the  Countryside  on  the,  Executive  Order  No.   124,  30  January   1987  -
Reorganization Act of the Ministry of Public Works and Highways, Executive Order
No.123, 30 January  1987 -Reorganization Act of the Ministry of Social Services and
Development
(3) Republic Act No.  3601  as amended by Presidential Decree No.  552 and Presidential
Decree No. 1702 pertaining to the creation of the National Irrigation Administration
(4) Section 1 of Executive Order No.124-A s.1987 Amending Executive Order No.124,
dated 30 January 1987, Reorganizing the Department of Public Works and Highways,
Redefining  its  Powers  and  Functions,  and  For  Other  Purposes  on  renaming  and
reorganizing the National Water Resources Council into the National Water Resources
Board.
(b) The following provisions are hereby amended accordingly:
(1)   Section 3 paragraph 3 Commonwealth Act No.  146, as amended, otherwise knoun as
the Public Service Act; pertaining to all cases involving the fixing of rates
(2)Section154,ArticleV,Chapter1,Title1,BookllofRepublicActNo.7160,asamended,
otherwise knoun as the Local Goverrment Code of 1991, and its implementing rules
andregulationsonthepoweroflocalgovemmentunitstofixtheratesofwaterutilities
ouned,operatedandmaintainedbythemwithintheirjurisdictionisherebyrepealedor
modified accordingly;
(3)   Section  13  (b)  on  the  regulationn 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
EnteapriseZoneAuthoritytograntfranchises,supervisetheoperationofpublicutilities,
and register,  monitor and regulate  enteaprises  within Tourism Enterprise Zones,  are
hereby repealed or modified accordingly;
(5)   Sections 7 and 8 on the adjudication of water pollution cases under Republic Act No.
3931   entitled,  An  Act  Creating  The  National  Water  and  Air  Pollution  Control
Commission, particularly with respect to Section 6, letters e, f, g, j, k of Presidential
Decree  No.  984  entitled,  Providing  for  the  Revision  of Republic  Act  No.  3931,
Commonly Known as the Pollution Control Law and For Other Purposes;
(6)Sections4(1)and7ofRepublicActNo.9275,otherwiseknownasthePhilippineClear
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 of 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.
QfAll 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. Effectivity. -This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.