*s ome
i RECEIVED

Republic of the Philippines

HOUSE OF REPRESENTATIVES ofd JUL 2013
Quezon City Te:
SIXTEENTH CONGRESS
First Regular Session

House Bil No__99

Introduced By Hon. DOUGLAS S. HAGEDORN

EXPLANATORY NOTE

Presently, the only measure that has legal basis insofar as the prevention and control
of marine pollution is the Presidential Decree No. 976 which was promulgated in 1976.
However, this law, otherwise known as the Marine Pollution Decree of 1976, were not
sufficient to deal with pervasive emissions and discharges of polluted effluents and wastes
from ships. Moreover, the wide-elbow-room vested in said law made it too general that
liberal promulgation of its implementing regulation or standard paramountly depends on the
primary agency responsible therefor. Worst, overlapping jurisdictions among government
agencies as far as the prevention of pollution from ships have instigated confusion among
stakeholders and implementing agencies.

In view of these, this proposed “Prevention of Pollution from Ships Act of 2013” is
filed in order to address limitations and weaknesses of P.D. No. 976 and other related laws,
and to come up with a comprehensive but relevant measure.

This proposed law primarily intends to implement the provisions of the most
important convention on marine pollution, which is MARPOL 73/78, an International
Convention for the Prevention Pollution from Ships, as modified by protocol of 1978 and
other protocols and annexes related thereto.

Among the countries worldwide, as of May 2013, 152 states, representing 99.2 per
cent of the world's shipping tonnage, are parties to the convention, For the East Asia’ region,
on the Philippines and Thailand have not yet ratified the MARPOL, to think that the
Philippines is among the top 15 ccuntries in terms of tonnage.

This notwithstanding, the rampant degradation of the marine environment bolsters
the need for the immediate passage of this measure, despite the ratification of the MARPOL.

Specifically, this legislative bill seeks to prevent pollution from ships, in general and
implement said convention as regards a (1) harmful substances (¢.g., oil, oily mixture, oil
residues, noxious and liquid substances in bulk, harmful substances in packaged form,


sewage, garbage, and air), and (2) system of certification, survey, inspection, monitoring,
detection, representation, adjudication of maritime pollution cases.

More importantly, the measure now clearly defines and delineates functions of
Philippine Coast Guard, Maritime Industry Authority, Department of Environment and
Natural Resources and Local Government Units, Philippine Port Authority and other port
authorities.

Furthermore, to address the immediate and comprehensive rehabilitation of marine
environment damage as brought about by ship operations, this measure provides for a
mechanism for environmental guarantee be institutionalized to finance the needs for
emergency response, clean-up or rehabilitation of areas that may be damaged.

Finally, the bill provides for appropriate sanctions which are adequate in severity to
discourage violations.

For this reason, the approval of this bill is eamestly sought

HON. DOUGLAS S. HAGEDORN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

Sixteenth Congress
First Regular Session

HOUSE BILLNO. ____

INTRODUCED BY HON. DOUGLAS S. HAGEDORN
——  ————_—_————

AN ACT
TO PREVENT AND CONTROL POLLUTION FROM SHIPS, PROVIDE PENALTIES THEREFOR
AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTER 1
GENERAL PROVISIONS

SECTION 1. Short Title. ~ This Act shall be known as the “Prevention of Pollution from
Ships Act of 2013”.

SEC. 2. Declaration of Policy. ~ The State shall hereby prevent and control pollution
resulting from the operations of ships in order to protect and advance the right of the
people to a balanced and healthful ecology in accord with the rhythm and harmony of
nature.

It shall likewise be the policy of the State to implement the Convention as it is herein
defined, including its amendments and protocols that have been ratified by the Philippines.

SEC. 3. Definition of Terms. — As used in this Act:

(a) Atmospheric discharges or emissions from ships refer to any deliberate discharge
or emission of ozone depleting substances, nitrogen oxides, sulfur oxides and volatile
organic compounds when such discharges do not meet the requirements of the

Convention.


(b) Chemical tanker refers to a ship constructed or adapted for the carriage in bulk of
any liquid product listed in the International Bulk Chemical Code or any noxious liquid
substance.

(0) Coastal state refers to the relationship of the Philippines to a foreign-flagged
vessel traversing Philippine waters and its corollary right to exercise jurisdiction and
regulatory control over such vessel.

(d) Convention refers to:

(2) The International Convention for the Prevention of Pollution from Ships 1973, as
amended by the Protocol of 1978 or MARPOL 73/78;

(2) Protocol | and Il of MARPOL 73/78;

(3) Annexes |, I, Il, IV, V and Vi, their relevant appendices, any technical code
referred to, as well as any amendment to any of these documents which may enter into
force in accordance with the procedure referred to in Article 16 of MARPOL 73/78;

(4) Any subsequent protocol of and amendment to the Convention which the
Philippine Government may ratify necessary to advance the purposes of this Act;

(5) Any mandatory Code referred to in the Convention or any subsequent protocol to
the Convention which the Philippine Government may ratify or any amendment which may
enter into force in accordance with Article 16 of the Convention.

(e) Department refers to the Department of Transportation and Communications.

(f) Discharge refers to any release, however caused, of harmful substances from a

ship, including any escape, disposal, spilling, leaking, pumping, emitting or emptying of such

substances, except:

(1) Release of harmful substances directly arising from the exploration, exploitation
and associated off-shore processing of sea-bed mineral resources; or

(2) Release of harmful substances for purposes of legitimate scientific research into
pollution abatement or control.

(g) Dirty ballast refers to water carried in the cargo tank.

{h) Flag state refers to the relationship of the Philippines to vessels registered under
its flag and the corollary right to exercise jurisdiction and regulatory control over these

vessels.


(i) Foreign-flagged ship refers to any ship registered in another State or authorized
to fly its flag, whether or not it is a State party to MARPOL 73/78, when found in any of the
ports, terminal facilities or waters within the jurisdiction or sovereignty of the Philippines.

() Garbage refers to all kinds of victual, domestic and operational waste, excluding
fresh fish and parts thereof, generated during the normal operation of the ship and liable to
be disposed of continuously or periodically.

(k) Harmful substance in package form refers to those substances which are
identified as marine pollutants in the International Maritime Dangerous Goods (IMDG)
Code and are held in forms of :ontainment specified for harmful substances in the IMDG
Code. If not otherwise identified in the IMDG Code, harmful substances in package form
shall include substances identified in accordance with the following criteria as provided in
the Convention:

(1) Those which are bio-accumulated to a significant extent and known to produce a

hazard to aquatic life or to human health; or

(2) Those which are bio-accumulated with attendant risk to aquatic organisms or to
human health with a short retention of the order of one (1) week or less; or

(3) Those which are highly toxic to aquatic life.

(I) Marine incident refers to an event involving the actual or probable discharge into
the sea, or emission into the atmosphere, of a harmful substance or effluents containing
such a substance.

(m) Marine casualty refers to any accident or incident of navigation which results in
producing a harmful, deleterious or damaging effect upon the marine environment.

(n) Master refers to every person, except a pilot, having command or charge of any
ship, including a boat captain.

(0) Noxious liquid substance refers to any substance identified as such under the
relevant chapter of the International Bulk Chemical Code or provisionally assessed as such
by Annex Il of the Convention.

(p) Oil refers to petroleum in any form including crude oil, fuel oil, sludge, oil refuse
and refined products, other than petrochemicals which are classified as noxious liquid
substances in accordance with Annex II of the Convention, and including substances listed
as asphalt solutions, gasoline blending stocks, oils, gasolines, jet fuels, distillates, gas oil and

naphtha in accordance with Appendix | of Annex | of the Convention.

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any oil content.

(q)_ Oily mixture refers to a mixture

(1) Oi tanker refers to a ship constructed or adapted primarily to carry oil in bulk in
its cargo spaces and includes combination carriers or any other tanker when in fact carrying
cargo or part of cargo of oil in bulk.

(s)_ Other harmful substance referss to any substance other than oil, noxious liquid
substances, harmful substances in package form, garbage, sewage, which, if introduced into
the sea, is liable to create hazards to human health, to harm living resources and marine
life, to damage amenities or to interfere with other legitimate uses of the sea, and includes,
but is not limited to, atmospheric discharges and other substances identified as marine
pollutants which may be subject to control pursuant to the provisions of this Act and other

relevant environmental laws of the Phi

pines.

(t) Owner refers to the person registered as the owner of the ship or who assumes
the operation of the ship, or, in the absence of registration, the person owning the ship or
the bareboat charterer of the ship, and, in the case of a ship owned by a State and operated
by a company which in that State is registered as the ship’s operator, “owner” shall include
such State.

jines and

(u) Philippine ship refers to any ship registered under the laws of the Philip
entitled to fly its flag wherever the ship may be found.

(v) Philippine waters refer to the internal waters, archipelagic waters, territorial seas,
waters within the contiguous and exclusive economic zones.

(w) Plastics include, but shall not be limited to, synthetic ropes, synthetic fishing nets,
plastic garbage bags, incinerator ashes from plastic products which may contain toxic or
heavy metal residues.

(x) Port state refers to the relationship of the Philippines to a_foreign-flagged vessel

which may be found in any of its ports, terminal facilities or harbors and its corollary right
to exercise jurisdiction and regulatory control over such vessel.

(y) Secretary means the Secretary of the Department of Transportation and
Communications.

(2) Sewage refers to:

(1) Drainage and other wastes from any form of toilets and urinals;

(2) Drainage from medical premises (dispensary, sick bay, etc.) via wash basins, wash

tubs and scuppers located in such premises;


(3) Drainage from spaces containing living animals; or
(4) Other waste waters when mixed with the drainages defined above.
ine environment and

(aa) Ship refers to a vessel of any type operating in the m
includes pleasure crafts, fishing vessels, hydrofoil boats, air-cushion vehicles,
submersibles, floating craft, drilling rigs and fixed or floating platforms.

(bb) Undue delay refers to a delay that is unreasonable and unnecessary in light of
the particular conditions of the ship, the ships cargo, destination and schedule, and in light
of the purpose and scope of the investigation, inspection or other cause for detaining the
ship.

CHAPTER 2
SCOPE AND APPLICATION

SEC. 4, Scope and Application of this Act. — Unless otherwise specified herein, this Act
shall apply to:

(a) All Philippine ships, wherever they may be found;

(b) All foreign-flagged ships in Philippine waters whether or not they are registered
with State parties to the Convention; and

(c) All other ships operating within the Philippine waters: Provided, That the
provisions of the Convention setting forth technical requirements that ships must meet
which are inapplicable or impractical in Philippine local setting may be suspended or
equivalents prescribed therefor upon determination by the Department, subject to public
consultation: Provided, further, That nothing herein shall prevent enactment of any law
providing for standards, requirements or regulations higher than those provided for by the
Convention.

SEC. 5. Exemptions. — This Act shall not apply to warships and naval auxiliary ships:
Provided, That all government ships shall be exempted from the coverage of this Act during

‘emergency response cases: Provided, however, That the Department, through the

Maritime Industry Authority (MARINA), the Philippine Coast Guard (PCG), the Philippine
Ports Authority (PPA) and other concerned agencies, shall ensure that appropriate
measures shall be adopted, not impairing the operational capabilities of such ships, that
such ship operates in a manner consistent, so far as is reasonable and practicable, with this
Act.

CHAPTER 3

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EXERCISE OF JURISDICTION OVER SHIPS

SEC. 6. Powers and Functions of the Department. — The Department shall be the
principal government agency responsible for the overall implementation and enforcement
of this Act and any requirement of the Convention. For this purpose, the Department,
through the Secretary, shall have the following general powers and functions:

(2) Oversee the implementation of this Act and coordinate the efforts of concerned
agencies;

(b) Formulate a comprehensive program to prevent or minimize marine pollution
from ships in coordination with the Department of Environment and Natural Resources
(DENR), the Department of Agriculture (DA), the Department of the Interior and Local
Government (DILG), the Department of Energy (DOE), port authorities and other relevant
agencies and stakeholders;

(©) Constitute the Marine Pollution Adjudication Board (MPAB);

(a) Reorganize or streamline the functions of its different line, staff and attached
authorities, agencies or bureaus for purposes of the effective and efficient implementation
of the provisions of this Act; and

(e) Exercise such powers and perform such other functions as may be necessary to

carry out its duties and responsibilities under this Act.

SEC. 7. Powers and Functions of the Maritime Industry Authority. — The Maritime

Industry Authority (MARINA) shall have the sole and exclusive authority and responsibility

to ensure that environmental and pollution regulations and standards for the construction
and equipment of Philippine vessels, before they are allowed to fly the Philippine flag,
and/or as part of their registration, are complied with. For this purpose, the MARINA shall
have the following duties and functions:

(a) Ensure that all Philippine ships are constructed and equipped with any fitting,
material, appliance or apparatus deemed appropriate and effective for the prevention of
any discharge or emission of harmful substances in consonance with the requirements of

the Convention;

(b) Survey all Philippine ships for purposes of the provisions of the immediately
preceding paragraph, which function may be delegated to MARINA-recognized

organizations through a deputation process to be formulated pursuant to this Act:


Provided, That, except for direct replacement, no change in the ship's structure, equipment,
fittings, arrangements and materials shall be made without the approval of the MARINA;

(c) Issue the required statutory certificates to all Philippine ships;

(d) Review and revise, whenever appropriate, the existing system of certification,
survey, inspection and monitoring of ships, with respect to pollution prevention to ensure

the overall management of the maritime sector

efficiency and transparency, consistent
and in accordance with the requirements of the Convention;

(e) Conduct surveys and issue certificates or endorsements to foreign ships registered
with another State party, if so requested by a State which is a party to the Convention;

(f) Require ships to keep and maintain relevant record books in accordance with the
Convention;

(g) Suspend, withdraw or revoke any certificate it may have issued to any Philippine
ship found not compliant wita this Act and with rules and regulations promulgated

therefor;

(h) Hear and adjudicate any violation of rules and regulations of the MARINA issued
pursuant to this Act;

(i) Impose such fines and penalties on Philippine ships which shall fail to comply with
the requirements of this Act and its implementing rules and regulations;

() Accredit, appoint and authorize recognized organizations to act on its behalf and,
for this purpose, execute the requisite memorandum of agreement defining the extent of
powers that may be exercised by such recognized organizations including, but not limited
to, the following:

(1) Perform and conduct statutory surveys on Philippine ships;

(2) Require repairs on a Philippine ship pursuant to findings resulting from port state
inspection;

(3) Carry out surveys requested by port state authorities; and

(4) Withdraw any statutory certificates if corrective action is not taken by the

(k) Provide the International Maritime Organization (IMO) with a list of recognized
organizations authorized to act on behalf of the Philippines together with the extent of
their powers, the specific responsibilities they are empowered to perform and the

conditions of the authority delegated to them;

7


(i) Impose, fix, collect and receive, in accordance with the duly approved schedules,
such fees necessary for the survey and certification of ships pursuant to this Act. Such fees
shall be imposed and collected in order to recover the cost for rendering the service and
shall not be used in order to impose a penalty: Provided, That excessive fees, multiple fees

and duplicative fees shall at all times be avoided;

(m) Issue such rules and regulations necessary to implement the provisions of this
Act: Provided, That such rules and regulations shall be in consonance with the Convention
and shall not change or in any way amend or be contrary to the intent and purposes of this
Act;

(n) Provide its officers and personnel with adequate training and continuing education
to ensure an efficient and professional pollution regulatory machinery;

(0) Impose and collect fees and charges in connection with the performance of its
functions under this Act; all fees and charges shall accrue to the Marine Environmental
Management Fund (MEMF) established under Section 42 of this Act; such fees shall be
imposed and collected in order to recover the cost for rendering the service and shall not
be used in order to impose a penalty: Provided, That excessive fees, multiple fees and
duplicative fees shall at all times be avoided; and

(p) Exercise such powers and perform such other functions as may be necessary to

carry out its duties and responsibilities under this Act.
SEC. 8. Powers and Functions of the Philippine Coast Guard. - Unless otherwise

provided under Section 9 of this Act, the Philippine Coast Guard (PCG) shall have the sole

and exclusive authority and responsibility to enforce environmental and pollution
regulations and standards to all ships which may be operating within Philippine waters,
including ports, terminal facilities or harbors. It shall include the authority to board and
inspect ships to ensure compliance with such regulations and standards.

For this purpose, the PCG shall have the following duties and functions:

(a) Ensure that all ships are operated and certificated in accordance with the
requirements of the Convention;

(b) Inspect the certificates and record books required of any ship pursuant to Section
12 of this Act;


(c) Conduct a physical inspection of the ship if there should be clear grounds for
believing that the condition of the ship or its equipment does not correspond substantially
with what is stated in the ship's certificates;

(d) Investigate any complaint involving the alleged violation of the Convention
committed by a ship regardless of source of the complaint or the location of the violation
and request the submission of evidence which the complainant may have regarding the
alleged violation;

{e) Request the assistance of any other State whose cooperation may be useful to the
investigation against a ship;

(f) Detain a ship pursuant to Section 16 of this Act;

(g) Require a ship to proceed to the nearest repair yard and ensure that the ship does
not leave until it can proceed to sea without posing an unreasonable threat or harm to the
marine environment;

(h) initiate proceedings against any person for violation of this Act when sufficient
evidence exists with respect to the alleged violation;

{i) Inform the complainant and the International Maritime Organization (IMO) of the
results of the investigation and any action taken against the ship operator of the Philippine
ship in respect of any alleged violation;

(i) Deny entry of a foreign-flagged ship to any Philippine port or terminal facility if it

fails to comply with the requirements of the Convention;
(k) Coordinate with, and inform, the diplomatic representative of the State, or the

flag State admini

ration, of any violation of the foreign ship and any action taken against
the ship;
(I) Inspect, verify and investigate a ship if it has discharged any harmful substance

‘0 the marine environment if:
(21) It has reasonable grounds to believe that a discharge has occurred in Philippine
waters;
(2) It receives a report from another coastal State; or;
(3) It receives a request from the fiag State;
(m) Forward the report of any violation committed by the ship with respect to any
discharge of harmful substances into the marine environment to the ship’s flag state

administration together with any evidence it may have;

9


(n) Immediately inform any affected coastal State of the discharge;

(0) inform the flag State administration of the foreign ship of the alleged violation and
furnish it with such information and evidence to show that a violation has occurred;

(p) Ensure that the ship is not unduly delayed or detained;

(q) Order into port any ship found in the territorial seas if there are clear grounds to
believe that the ship has discharged harmful substances into the marine environment;

(Establish procedures for reporting incidents involving any actual or probable

discharge or emission which may be in violation of this Act and of the requirement of the

Convention consistent with the reporting requirements under this Ac

(s) Require all ships and aircrafts registered under the Philippine flag to immediately
report any marine casualty which they witnessed while navigating;

(t) Upon inquiry or investigation, cause or recommend regulatory or other
appropriate actions to be taken in connection with any violation of the provisions of this
Act;

(u) Cooperate with the government of other States which are members of
international organizations on the prevention of pollution from ships concerning the
detection of violations and enforcement of this Act using all appropriate and practicable
measures of detection and environmental monitoring, adequate procedures for reporting
and accumulation of evidence;

(v) Provide its officers and personnel with adequate training and continuing education
to ensure an efficient and professional pollution regulatory machinery;

(w) Adopt a continuing information campaign on marine resources protection aimed
at developing public awareness of the health hazards and other adverse effects of ship
pollution;

(x) Administer the MEMF;

(y) Issue such rules and regulations necessary to implement the provisions of this Act:
Provided, That such rules and regulations shall be in consonance with the Convention and
shall not change or in any way amend or be contrary to the intent and purposes of this Act;
and

(z) Exercise such powers and perform such other functions as may be necessary to

carry out its duties and responsibilities under this Act.

10


SEC. 9. Role of the Department of Environment and Natural Resources (DENR). ~ For
purposes of this Act, the DENR shall have the following powers and functions:

{a) Provide technical assistance on pollution prevention to the concerned government
agencies in the implementation of this Act;

(b) Establish guidelines for che identification of harmful substances in packaged form
in accordance with the guidelines and listings provided by the IMDG Code in coordination
with the PPA and other port authorities; and

(c) Set emission standards for ships in accordance with the requirements of the
Convention.
illing rigs and fixed or floating platforms, and vessels which

For floating craft, di
primarily operate or undertake business, commercial or industrial activities while anchored,
the DENR, in coordination with the PCG, shall enforce the applicable provisions of
Presidential Decree No. 1586 and Republic Act No. 9275.

The DENR, in coordination with the PCG, shall likewise monitor hazardous and
radioactive wastes being transjrorted by ships in the country, and prevent the disposal
thereof and/or the entry of ships carrying the same.

CHAPTER 4
PREVENTION OF POLLUTION FROM SHIPS
SEC. 10. Prohibition of Discharge or Emission of Harmful Substances. — It shall be

unlawful for any person to discharge or emit the following substances from any Philippine

ship, or from any other ship while it is within Philippine waters:
{a) Oil, whether carried as cargo or as bunker;
(b) Oily mixture, whether generated from cargo operations or from machinery spaces;

(c) Noxious liquid substances carried in bulk;

(d) Harmful substances in packaged form;
{e) Sewage;
(f) Garbage; and
(g) Other harmful substances, whether generated during the operation of the ship or
not.
The provisions of this section shall not apply in the following cases:
(1) The discharge or emission is necessary for the purpose of securing the safety of a

ship and those on board or saving life at sea; or

i


(2) The discharge results from unintentional damage to the ship or its equipment, and
all reasonable precautions have been taken after the occurrence of the damage or the
discovery of the discharge for the purpose of preventing or minimizing the discharge, unless
the master, owner or agent of the ship acted either with intent to cause damage or
recklessly and with knowledge that damage would probably result; or

3) The discharge Is for the purpose of combating specific pollution incidents in order
to minimize the damage from pollution.

For this purpose, the Department shall promulgate rules and regulations for the
purpose of giving effect to the immediately preceding paragraph as regards its application
in general or with respect to particular classes of ships, or in relation to particular
descriptions of harmful substances, or to the disposal or discharge thereof in prescribed

umstances, or in relation to particular areas of the sea in consonance with the

requirements of the Convention.

SEC. 11.lmmediate Report of Discharges of Harmful Substances. — If any actual or
probable discharge of any harmful substance occurs from any Philippine ship into any part
of the sea or atmosphere, the master shall immediately report the incident to the nearest
affected coastal State and to the Department.

If any actual or probable discharge of any harmful substance occurs from any
Philippine ship or foreign-flagged ship while it is operating in Philippine waters, the master
of the ship shall immediately report the occurrence to the PCG. The PCG shall immediately
inform any affected coastal State. If a foreign-flagged ship is involved, the PCG shall

immediately inform the flag State of the shi

If the master of the ship fails to report the occurrence, or the discharge occurs in
circumstances where the ship has been abandoned, the owner, charterer, manager and
operator of the ship or an agent of the owner, charterer, manager and operator of the ship
shall without delay, report the occurrences to the Department.

SEC.12. Record Books. — Philippine ships and all ships within Philippine waters shall
maintain on board record books in the English language, whether as part of their official

logbook or not. For this purpose:

{a) Every oil tanker which is one hundred fit

(150) gross tonnage or more and every

ship, other than an oil tanker which is four hundred (400) gross tonnage or more shall be

12


provided with, and shall be required to maintain, an Oil Report Book Part | for Machinery
Space Operations in accordance with the requirements of the Convention;

(b) Every oil tanker which is one hundred fifty (150) gross tonnage or more shall be
provided with, and shall be required to maintain, an Oil Record Book Part Il for
Cargo/Ballast Operations in accordance with the requirements of the Convention;

(c) Every chemical tanker shall be provided with, and shall be required to maintain, a
Cargo Record Book in accordance with the requirements of the Convention; and

{d) Every ship which is four hundred (400) gross tonnage or more and every ship
which is certified to carry fifteen (15) persons or more shall be provided with, and shall be

the requirements of the

required to maintain, a Garbage Record Book in accordance
Convention.

SEC. I3. Reception Facilities. ~ Port authorities shall ensure that public and private
ports and terminal ports in the Philippines shall be appropriately and adequately provided
with facilities to meet the needs of ships without causing such ships undue delay in the
reception of its oily residues, oil mixtures, dirty ballast, tank washing water, noxious liquid
substances, sewage, garbage, ozone depleting substances and equipment containing such
substances and for cleaning of exhaust gases in consonance with this Act and the
requirements of the Convention.

For this purpose, port authorities shall: (a) determine and establish the most effective
and efficient means for meeting the internationally-accepted requirements with respect to

reception facilities in public and private ports; _(b) formulate and implement integrated

waste management system for the use and operation of reception and treatment facilities;
and (c) coordinate with the DENR and concerned local government units (LGUs) on the
proper handling and disposal of wastes collected at ports.

Port authorities may accredit or enter into agreements with private entities in relation
to the establishment and operation of reception and treatment facilities.

SEC. 14.Use of Reception Facilities. — All ships entering or availing the services of
ports, terminals and repair ports shall use reception facilities established pursuant to the
immediately preceding section, subject to the integrated waste management system to be

established by port authorities.

13


SEC. 15.Denial of Entry. — A foreign-flagged ship believed to have probably violated
‘or would violate the requirements of this Act, or rules and regulations promulgated
therefor, may be denied entry to any port in the Philippines.

SEC. 16. Detention of Ships. - Ships shall be detained in any of the following cases:

(a) The fine or fines imposed on ship, owner or operator of the ship pursuant to
Chapter 5 of this Act, except those imposed for violations of administrative regulations
under Sections 27, 28 and 29 of this Act, have not been paid;

(b) The condition of the ship does not substantially correspond with what is stated in
the ship's certificates;

(c) The ship does not hold valid ship's certificates;

(d) There are reasonable or probable grounds to believe that:

(1) The ship incurred a pollution cost liability under Section 33 of this Act;

(2) The ship violated any of the requirements of this Act or rules and regulations
promulgated therefore; and

(3) The ship caused harm or damage or exhibited a reasonable environmental threat
to the marine environment.

‘A ship detained under paragraph (d) of this section may be released after the owner
of the ship posts with the MPAB an adequate cash bond, insurance guaranty, or protection
indemnity guaranty or a combination thereof, as approved by the Board, to satisfy the
liability of the owner, master or agent of the ship under this Act.

CHAPTER 5
FINES, PENALTIES AND LIABILITIES.

SEC. 17. Imposition of Fines, Penalties and Liabilities. — Except for fines and penalties
for violations of administrative regulations under Sections 27, 28 and 29 of this Act, all fines
and penalties imposed for violations of the provisions of this Chapter shall be imposed by
the MPAB established pursuant to Section 35 of this Act.

For this purpose, an appropriate fine rating system shall be established by the said
Board, taking into consideration degree of willfulness, negligence or recalcitrance of the
master, owner or operator of the ship, their history of noncompliance and the gravity of the

damage caused by the ship to the environment.

14


SEC. 18. Discharge or Emissicn of Harmful Substances. — A ship which is found to have
discharged or emitted harmful substances under Section 10 of this Act shall be liable to the
following fines:

(a) In the case of a Philippine ship, unless the discharge or emission is committed and
appropriately fined in other States’ jurisdiction:

(1) For oll or oily mixture under paragraphs (a) and (b) of Section 10 of this Act — not
less than Twenty thousand pesos (Php20,000.00) but not more than Ten million pesos
(Php10,000,000.00);

(2) For noxious liquid substances or harmful substances in packaged form under
paragraphs (c) and (d) of Section 10 of this Act ~ not less than Ten thousand pesos
(Php 10,000.00) but not more than Ten million pesos (Php 10,000,000.00);

(3) For sewage or garbage under paragraphs (e) and (f) of Section 10 of this Act ~ not
less than Five thousand pesos (Php5,000.00) but not more than Two million pesos
(Php2,000,000.00); and

(4) For other harmful substances as defined in this Act - not less than Three thousand
pesos (Php3,000.00) but not more than Ten million pesos _ (Php10,000,000.00).

(b) In the case of a foreign-flagged shi

(1) For oil or oily mixture under paragraphs (a) and (b) of Section 10 of this Act ~ not
less than Five thousand US dollars (US$5,000) but not more than Five million US dollars
(US$5,000,000), or its equivalent in Philippine pesos;

(2) For noxious liquid substances or harmful substances in packaged form under
paragraphs (c) and (d) of Section 10 of this Act ~ not less than Three thousand US dollars
(US$3,000.00) but not more than Three million US dollars (USS3,000,000.00), or its
equivalent in Philippine pesos;

(3) For sewage or garbage under paragraphs (e) and (f) of Section 10 of this Act - not
less than One thousand US dollars (US$1,000.00) but not more than One million US dollars
(US$1,000,000.00), or its equivalent in Philippine pesos.

(4) For other harmful substances as defined in this Act - not less than Three thousand
US Dollars (US$3,000.00) but not more than Five million US dollars (US$5,000,000.00), or its
equivalent in Philippine pesos; and

‘Any person directly or negligently responsible for the discharge or emission into

ppine waters or atmosphe’e shall be liable to a fine of not less than Five thousand US

15


dollars (USS5,000.00) but not more than Five million pesos (Php5,000,000.00) and,
whenever appropriate, to the costs of any measure reasonably taken in removing or
eliminating the discharged or emicted substances.

SEC. 19. Failure to Maintain Record Books. — (a) A ship which operates or is allowed to
operate without record books required under Section 12 of this Act or fails to maintain on
board said record books shall be liable to a fine of Two hundred thousand pesos
(Php200,000.00).

(b) Any person who fails to comply with the provisions of Section 12 of this Act or the
rules and regulations promulgated therefor shall be liable to a fine of not less than Five
thousand pesos (Php5,000.00) but not more than Two hundred thousand pesos
{Php200,000.00).

(c) Any person who makes any false or misleading entry in said record books carried
or kept under Section 12 of this Act shall be liable to a fine of not less than Ten thousand

pesos (Php10,000.00) but not more than Five hundred thousand pesos (Php500,000.00).

SEC. 20. Refusal to Use Reception Facilities. — A ship which unjustifiably refuses to use
reception facilities shall be liable for a fine of not less than Ten thousand pesos
(Php10,000.00) but not more than Five hundred thousand pesos (Php500,000.00):
Provided, That disposal of oil in reception facilities shall be required upon determination by
the PCG.

SEC. 21. Absence of and Noncompliance with Shipboard Garbage Management. ~ If a
ship operates without a shipboard garbage management plan as required under the
Convention or fails to operate in accordance _with such plan, it shall be liable for a fine
of not less than Ten thousand pesos (Php10,000.00) but not more than Two
hundred thousand pesos (Php200,000.00).

SEC.22.Unauthorized Change in the Ship’s Structure, Equipment, Fittings,
Arrangements and Materials. — Unless authorized under this Act or the Convention, any
ship owner who made, or caused the making of changes in the structure, equipment,
fittings, arrangements and materials of the ship without the approval of the MARINA shall
be punished by a fine of not less than Ten thousand pesos (Php10,000.00) but not more
than One hundred thousand Pesos (PhpI00,000.00)..

SEC. 23. Operating Without the Required Certification. — A ship which is operated or is

allowed to operate without the certification required pursuant to this Act or the

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Convention shall be detained and shall be liable to a fine of not less than Ten thousand
pesos (Php10,000.00) but nat more than Five hundred thousand pesos (Php500,000.00).
SEC. 24. Violation of Detention Order. ~ A ship which proceeds to sea in violation of a
detention order made pursuant to Section 16 hereof shall be liable to the following fines:
{a) Philippine ship — not less than Ten thousand pesos (Php10,000.00) but not more
than One million pesos (Php1,000,000.00); and
(b) Foreign-flagged ship — not less than Five thousand US dollars (USS5,000.00) but

not more than Five million U$ dollars (US$5,000,000.00), or its equivalent in Philippine
pesos.

SEC. 25.Continuing Violation. - Where a ship continuously discharges or emits
harmful substances in violation of Section 10 of this Act, it shall be held liable for the fines
stipulated under Section 18 and shall be furthermore liable to an additional fine of
not less than Ten thousand pesos (Php10,000.00) but not more than Two hundred
thousand pesos (Php200,000.00) for every day or part thereof during which the offense
continues.

SEC. 26. Obstruction of Investigation. - Any person who shall, without justifiable
reason, obstruct or hamper the conduct of an investigation of a violation of this Act shall be
liable to pay a fine of not less than Ten thousand pesos (Php10,000.00) but not more than
‘One hundred thousand pesos (Php100,000.00).

SEC. 27.Neglect of Duty. - Any government official or employee charged with the

responsibility of enforcing any provision of this Act, who is found guilty of gross negligence

of duty, shall be dismissed from the service with prejudice to reinstatement. Neglect of
duty shall be prosecuted in accordance with existing laws.

SEC. 28. Connivance in Violation of this Act. — Any government official or employee
charged with the responsibility of enforcing and/or implementing any provision of this Act
who connives with the ship owner, master or operator of a ship or any person to violate, or
permits the commission of, any violation of this Act shall be dismissed from the service and
shall be jointly and severally liable with any such person found to be liable for the fine
imposed pursuant to this Act.

SEC. 29. Violations of Administrative Regulations. - Any person who commits or omits

acts in violation of rules and regulations issued by concerned agencies pursuant to this Act,

7


unless the violations are otherwise covered under Sections 19 to 28 hereof, shall be liable
to the following fines:

(a) First violation — a fine of not less than One thousand pesos (Php1,000.00) but not
more than One hundred thousand pesos (PhpI00,000.00);

(b) Second violation — a fine more than One hundred thousand pesos (Php100,000.00)
but not more than Two hundred thousand pesos (Php200,000.00); and

(c) Third violation a fine more than Two hundred thousand pesos (Php200,000.00)
illion pesos (Php1,000,000.00) and the suspension of vessel safety

but not more than One
certificate for six (6) months to one (1) year.

The concerned agency shall promulgate rules and regulations for the summary
imposition of administrative sanctions, subject to due process, for failure to comply with
ued pursuant to this Act. All

any order, decision, rules or regulations of the Department
administrative fines imposed by the concerned agency pursuant to this Act shall accrue to
the MEMF.

SEC. 30.intentional Violation. - In case the discharge or emission of harmful
substances or toxic pollutants identified pursuant to Republic Act No. 6969, otherwise
known as the “Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990”, in
toxic amounts or in violation of Section 10 of this Act is deliberate and willful, the offender,
without prejudice to the civil liability of the offender, shall be liable to the following fines or
imprisonment of not less than six (6) years but not more than twelve (12) years, or both, at
the discretion of the court:

(a) Philippine ship — not less than Fifty thousand pesos (Php50,000.00) but not more

than Twenty million pesos (Php20,000,000.00); and

(b) Foreign-flagged ship — not less than Fifty thousand US dollars (US$50,000.00) but
not more than Eight million US dollars (US$8,000,000.00), or its equivalent in Philippine
Pesos.

SEC. 31. Automatic Adjustment of Penalties and Fines. — The fines prescribed in this
Act shall be automatically increased by ten percent (10%) every three (3) years from the
effectivity of this Act.

SEC. 32. Clean-up Operations. — In the event harmful substances under Section 10 of
this Act are discharged or emitted from any ship into Philippine waters or into any part of

the sea or waters outside Philippine waters but such substances subsequently flowed or

18


drifted into Philippine waters, or into the Philippine atmosphere, the PCG, in coordination
with other agencies concerned, shall be responsible for the cleanup and containment of
discharged substances, and the prevention or mitigation of the resulting damage to the
ite properties:

environment, human health, tourist and fishing industries, public and

Provided, The necessary initial cleanup and containment shall be made by the owner of the
ship which discharged or caused the discharge of such harmful substances.

SEC. 33.Cost Liability for the Discharge or Emission of Harmful Substances. — The
‘owner of the ship liable for the discharge of harmful substances under Section 32 hereof
shall be primarily responsible to pay for the following pollution costs:

(a) Reasonable expenses that the PCG and other agencies concerned may reasonably
undertake or has undertaken pursuant to the immediately preceding section; and

(b) Environmental damages and/or other reasonable measures taken for
environmental rehabilitation.

In case the responsibility for the above pollution cost liability falls on two (2) or more
ships, and the liability of each of the owners thereof cannot be reasonably distinguished
from that of the other, each of the owners shall be jointly and severally liable for the whole
amount of the cost.

Republic Act No. 9483, otherwise known as the “Oil Pollution Compensation Act of
2007”, shall govern the civil liability for the discharge of oil, including the oily mixture,
discharged as part of the incidert under the said Act.

Reimbursement of the cost incurred shall be made to the MEMF or to such other
funds where disbursements were sourced.

SEC. 34./nformer’s Reward to Persons Instrumental in the Discovery of Violations of
this Act. — Any person with the exception of the Department, the DENR, the LGUs, the
MARINA, the PCG or port authority officials or employees or their relatives within the sixth
degree of consanguinity, who voluntarily gives definite and sworn information, not yet in
the possession of the MARINA or the PCG, leading to the discovery of the violation of this
Act, thereby resulting in the imposition of fines and/or fees or conviction of the guilty party
and/or the imposition of any of the fines or penalties, shall be rewarded in a sum
equivalent to ten percent (10%) of the fines imposed and/or fees recovered.

CHAPTER 6
MARINE POLLUTION ADJUDICATION BOARD

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SEC. 35. Marine Pollution Adjudication Board. - There is hereby constituted a Marine
Pollution Adjudication Board (MPAB) under the Office of the Secretary vested with quast-
judicial powers which the Board shall have sole and exclusive jurisdiction over all marine
pollution cases as provided for in Section 17 of this Act. The Board shall be composed of the
following members:

(a) The Secretary of the Department, or his duly authorized permanent
representative, as Chairman;

(b) The Secretary of the DENR, or his duly authorized permanent representative;

(c) The Administrator of the MARINA, or his duly authorized permanent
representative;

(d) The Commandant of the PCG, or his duly authorized permanent representative;

{e) The General Manager of the PPA, or his duly authorized permanent
representative;

(f) A permanent representative endorsed by the Association of Masters and Mates;

(g) Apermanent representative endorsed by the Marine Engineers Association; and

(h) A member of the Philippine Bar duly endorsed by the Integrated Bar of the
Philippines (IBP).

The grant of honoraria to members of the MPAB shall be subject to existing laws,
accounting and auditing rules and regulations.

SEC. 36.Powers and Functions. - The MPAB shall have the following powers and
functions:

(a) To hear and decide cases falling under their jurisdiction pursuant to Section 17 of
this Act;

{b) To conduct hearings on all matters within its jurisdiction, proceed to hear and
determine the disputes in the absence of any party thereto who has been summoned or
served with notice to appear, conduct its proceedings or any part thereof in public or in
private, adjourn its hearings at any time and place, refer technical matters or accounts to an
expert and to accept the experts’ reports thereon as evidence after hearing of the parties
upon due notice, direct parties to be joined in or excluded from the proceedings, correct,
amend or waive any error, defect or irregularity, whether in substance or in form, give all

such directions as it may deem necessary or expedient in the determination of the dispute

20


is trivial or where further

before it and dismiss the dispute as part thereof, where
proceedings by the Commission are not necessary or desirable;

(c) To promulgate and adopt its own rules on pleading, practice and in the
adjudication of pollution cases coming from ship. It shall not be bound by technical rules of
procedure and evidence but stall proceed to hear and decide all cases, disputes or

us manner, employing all reasonable means to ascertain

controversies in a most exped
the facts of every case in accordance with justice and equity and the merits of the case;

(d) To summon witnesses, administer oaths, take testimony, require submission of
reports, compel the production of books and documents and answers to interrogatories
and issue subpoena ad testificandum and subpoena duces tecum and to enforce its writs
through sheriffs or other duly deputized officers;

(e) To punish direct and indirect contempt in the same manner and subject to the
same penalties as provided in the Rules of Court;

(f) To enjoin any or all acts involving or arising from any case pending before it which,
if not restrained forthwith, may cause grave or irreparable damage to any of the parties to
the case or seriously affect social or economic stability;

(g) To issue orders and decisions to compel compliance with the provisions of this Act
and the Convention and issuances or decisions of the MPAB;

(h) To deputize in writing or request assistance of appropriate government agencies

or instrumentali

s for the purpose of enforcing its decisions; and

(i) To issue an ex parte order directing the discontinuance of discharge of substances
that cause marine pollution, or the temporary suspension or cessation of operation of the
equipment, project or activity and other acts causing environmental degradation,
generating such pollutants or wastes, without the necessity of a previous public hearing:
Provided, That such ex parte order shall be issued only in case of immediate threat to life or
property, public health, safety or welfare or to animal or plant life, or exceeds the allowable
environmental standards. The ex parte order shall be immediately executory and shall

remait

in force and effect until the same is modified or lifted by the MPAB.
SEC. 37. Finality of Determination. — Any case or controversy before the MPAB shall
be decided by majority of all its members within thirty (30) days after it is submitted for

resolution. Only one (1) motion for reconsideration shall be allowed. Unless an appeal is

21


perfected and a cash bond equivalent to the fine imposed is deposited, any order, decision
‘or ruling issued by the MPAB shall be final and executory.

SEC. 38. Appeals. - Any decision, order or judgment of the MPAB may be appealed to
the Court of Appeals by certiorari within fifteen (15) days from receipt of a copy thereof:
Provided, That cease and desist orders shall be immediately executory.

CHAPTER 7
MISCELLANEOUS PROVISIONS

SEC. 39. Ship Pollution Prevention Program. — The Department, in coordination with

concerned agencies and stakeholders, shall establish a Prevention of Ship Pollution Program

to enhance government implementation of this Act particularly on: (a) awareness building

and capacity building; (b) databanking; (c) development of reception facilities; (d) marine
environment protection; and (e) research.

SEC. 40. Implementing Rules and Regulations. - The Department and the concerned
agencies shall promulgate the implementing rules and regulations for this Act within one (1)
year after the enactment of this Act. The proposed implementing rules and regulations
shall be subjected to public consultations with affected sectors. The Department shall
ensure that functions of the implementing agencies and rules and regulations promulgated
prior to and after the effectivity of this Act are devoid of any duplication or inconsistency.

The rules and regulations issued by other government agencies and instrumentalities
for the prevention of marine pollution not inconsistent with and appropriate to the
implementation of this Act shall supplement the rules and regulations issued by the
Department pursuant to this Act.

SEC. 41.Joint Congressionc! Oversight Committee (JCOC). — The Joint Congressional
Oversight Committee created under Section 33 of Republic Act No. 9275 or the “Philippine
Clean Water Act of 2004” shall also monitor the implementation of this Act and review the
implementing rules and regulations promulgated by the Department.

The JCOC shall exist for a period not exceeding five (5) years from the effectivity of

this Act and thereafter, its oversight functi

Ins shall be exercised by the Senate Committee
‘on Environment of the Senate and the Committee on Ecology of the House of

Representatives, acting separately.

22


‘The Secretariat of the Congressional Oversight Committee shall come from the
secretariat personnel of the Committees of the Senate and the House of Representatives
comprising the JCOC.

SEC. 42.Marine Environmental Management Fund (MEMF). - There is hereby
established a Marine Environmental Management Fund (MEMF) to be administered by the
PCG. The Oil Pollution Management Fund (OPMF) created under Section 22 of Republic Act
No. 9483, otherwise known as the “Oil Pollution Compensation Act of 2007”, is hereby

abolished. All balances, including the liabilities incurred by the OPMF, shall be transferred

to the MEMF. The MEMF shall be sourced from the following:
(a) Fees, charges and fines imposed pursuant to this Act and Republic Act No. 9483;
(b) Donations, endowments, grants and contributions; and
(c) Amounts specifically appropriated for the MEMF under the annual General

Appropriations Act.

The MEMF shall be utilized for the following activities:
(1) Containment, removal and clean-up operations of the PCG in all oil pollution
cases; and

(2) Enforcement and monitoring activities of the MARINA, the PCG and port

authorities of the Department and other relevant agencies: Provided, That ninety percent
(90%) of the funds shall be maintained annually for the containment, removal and clean-up
operations of the PCG in all cases of pollution from ships: Provided, further, That in no case
shall the MEMF be used to fund personal services expenditures except for the
compensation of those involved in clean-up operations.

SEC. 43. Appropriations. - The amount necessary to carry out the provisions of this
Act shall be charged against the current year’s appropriations of the concerned agencies.
Thereafter, such sums as may be necessary for the operation and maintenance of this Act
shall be included in the General Appropriations Act.

n of this Act is declared

SEC. 44. Separability Clause. - In the event that any prot
unconstitutional, the validity of the remainder shall not be affected thereby.

SEC. 45. Repealing Clause. - The fifth paragraph of Section 28 of Republic Act No.
lic Act No. 9483 are hereby repealed. Republic Act No. 6969,
Presidential Decree Nos. 979 and 601 are hereby amended and modified accordingly. All

9275 and Section 22 of Repul

23


laws, decrees, rules and regulations and executive orders contrary to or inconsistent with

this Act are hereby repealed or modified accordingly.

SEC. 46.Effectivity Clause. — This Act shall take effect fifteen (15) days after the
completion of its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,

24