Republic of the Philigpines ,
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House surno.__ 4535

Introduced by Representative Lex Anthony Cris A. Colada

EXPLANATORY NOTE

One of the declared principles of the State under the 1987 Constitution is its mandate to
protect the life of the Filipino in general, Included in this obligation is the responsibility of the
State to provide water security to all citizens and inhabitants of its territory as it nurtures and
sustains life.

Despite the fact that Philippines is water-rich country, Filipinos still struggle to have
access to affordable, safe and potable water as well as proper sanitation services. This is
because the governance and maintenance of our water resources remains fragmented and
uncoordinated. Currently, there are several government agencies at implementing different
policies, plans, and programs to develop and operate water facilities and related lnfrastructure
for various uses, and to regulate water use, monitor water-related financial and technical
parameters, and set water tariff.

Creation of a centralized department is what this bill proposes. The Department of
Water Resources will serve as the primary agency responsible for national policy-making,
coordination, and management of ali the water resources in the Philippines. All government
agencies related to water shall be rationalized under this Department. It likewise proposes to
create an independent Water Regulatory Commission to ensure
the effective and adequate delivery of water and sanitation services throughout the country
under a credible, transparent, and accountable regulatory framework. This Commission shall
always protect the consumer welfare and reject abusive practices in the w jayEry.

In view of the foregoing, the passage of this bill is earnestly sougl

LEX ANTHONY A. COLADA
AAMBIS-OWA, feoresentative



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No 4535

Introduced by Representative Lex Anthony Cris A. Colada

AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND
THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, POWERS AND
FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR

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

CHAPTER |
GENERAL PROVISIONS

SECTION 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 anc
prioritize the establishment of infrastructure and public works that adopt innovative
solutions and international best practices to address the challenges of climate change.


e hereby declared as

Further, all water and water treatment infrastructure projects
projects imbued with national interest.

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

{a} Bulk water supplier refers to any entity, natural or juridical, whether public or
private, supplying or intending to supply large quantities of raw or treated water to
buyers who will use these for their own consumption, 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) Environmental services refer to qualitative functions of natural non-produced
assets of lang, water, and air, including related ecosystems, and their biota, and which
may be categorized into three basic types: (a) disposal services which reflect the
functions of the natural environment as an absorptive sink for residuals; (b) productive
services which reflect the economic functions of providing natural resource inputs and
space for production and consumption, and (c) consumer or consumption services
which provide for physiological as well as recreational and related needs of human
beings.

{c) Flood Control refers to methods, acts, and protocols to be observed in order
to prevent and reduce the detrimental and catastrophic effects of flood waters which
include sediment-laden or turbid flows, and hyper-concentrated flows or debris flaws.

(d) Flood Risk Management (FRM2) refers to such acts of defining and
determining the appropriate methods, acts, and protocols aimed at preventing anc
reducing the risk of incurring loss of both life and property due to flood waters. Flood
risk management consists of a cycle of prevention, mitigation, adaptation, preparedness
‘and early warning, and response and recovery. The elements of FRM include: integrating
land-use planning and coastal zone management into water management; adopting 2
holistic approach so that FRM is part of wider risk or multi-hazard management of
earthquakes, landslides, and storm surges; managing risk and uncertainty as a whole so
it not only mitigates hydrological uncertainties but also social, economic and political
uncertainties on account of human behavior and the cultural dimensions of FRM,

{e) Gender 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 whoily or primarily water-related
projects and does not include projects that do not fall within the purview of the
objectives, power and duties of the Department of Water Resources created under this
Act.



(g) Integrated Water Resoune Management (I/RM) reters 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 socia| weltare in an
equitable manner, end without compromising the sustainability of vita ecosystems.

(h) Levels of waler supply reter to communal sources or water described
according to location and size of the recipient human settlement as follows

(1) Level | or the point source is @ protected well or a developed spring with an
outlet but without any distribution system, penerally adaptable to rural and upland
areas where -houses are thinis scattered, and is a tacility which usually serves an
average of 15 households.

(2) Level 1! or the communal faucet system or stand posts is a system composed
of a water source a reservoir, a piped distribution network, and communal faucets
where one faucet serves 4 to 6 households and is generally suitable tor rural and urban
fringe areas where houses are clustered densely to justify a simple piped system

(3} Level tt! or the waterworks systern or individual house connections is a system
with a water source, a reservoir, a piped distribution network and household taps,
suitable for densely populated urban areas

{i) License reters to the Water Supply and/or Sanitation Services Operating
License that the Water Regulatory Commission is authorized to grant and issue to
service providers. Licensee refers to a service provider to whom a license Is granted or
issued by the Water Regulator Commission.

(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.

|) National Water Resources Management Plan (NIVRMP) refers to a policy
document that contains a framework to guide the development and management of all
the water resources in the Philippines, the general strategies and work to be pursued to
ensure the sustainability of the resource towards water security, and top-level direction
on the utilization of existing water resources in line with natione| development plans,
policies, and programs in accordance with the |WRM framework The NWRMP shall also
include a water infrastructure development program or all waters of the country as well
as provide general guidance on how this shall be supported within an integrated
financing framework that can draw from public, private, and international development
funding sources.

(m) Net Waste Load refers to the difference of the initial waste load of the
abstracted water and the waste load of the final effiuent discharge of an industry

{n) Regulatory units refer to the offices established under Section 20 of this Act
which issue license authorizing the operation of Water Supply and Sanitation Services,


and provide, review, determine, fix, and approve water and sewerage tariffs, rates, and
charges that licensees may impose.

{0} 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 (RB) refers to multi-stakeholder organizations which
plan, coordinate, and monitor activities within a river basin cluster

{q) Sanitation refers to the provision of facilities and services for the sate
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

{r) Sediment management refers to control of sediment erosion and deposition in
rivers, reservoirs, and coastal zones through non-structural and structural measures and
control works

{s} Sustainable Development Goals (SOGs) also known as the 17 Global Goals
refer to the universal call to action to end poverty, protect the planet and ensure that all
people enjoy peace and prosperity by 2030 adopted by all United Nations Member
States in 2015.

{t) Septage is the liquid and solid material pumped from a septic tank, cesspool,
or other primary treatment source

{u} Septage Management refers to the 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 private or
public, providing or intending to provide levels || & Ili water supply, including bulk water
suppliers, sewerage, septage treatment, and disposal services for domestic, residential,
industrial, or commercial use

(x) Sewage refers to water borne human or animal wastes, excluding oil or oll
waste, removed from residences, buildings, institutions, and industrial and commercial
establishments together with such groundwater, surface water and storm waters as
may be present including such waste from vessels, offshore structures, other
receptacles intended to receive or retain waste or other places or the combination
thereof

(y) Sewerage refers to any system or network of pipelines, ditches, channels or
conduits including pumping stations, lift stations and tore mains, service connections
including other infrastructure, devices, or appliances appurtenant thereto, which
include the collection, transport, pumping and treatment of sewage to a point of
disposal,

(2) Sewers refer 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 terms tor
disadvantaged individuals and groups to take part in society

(bb) Tariffs refer to such amounts which may be charged by licensees tor their
water supply and sanitation services based on principles, standards, and guidelines
established by the Department of Water Resources,

(cc) Water Demand Management DM) refers to any method. whether technical,
‘economic. administrative, financial, or social that will accomplish one or more of the
following:

{1) Reduce the quantity or quality of water required to accomplish a specific task;

{2) adjust the nature of the task or the way it is undertaken so that it can be
‘accomplished with less water or with lower quality water:

{3) Reduce the loss in quantity or quality of water as it tows from source, through
use, to disposal;

{4) Shift the timing of use from peak to off-peak periods; and

{5) increase the ability of the water system to continue to serve society during
times when water
is in short supply

(de) Water Districts refer to government-owned and controlled corporations
organized under Pr lential Decree No. 198, as amended, created primarily to acquire,
install, operate, maintain, and improve water supply and distribution systems tor
domestic, industrial and municipal uses or 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.

(ff) 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 rain water, and the waters of
the sea within the territorial jurisdiction of the Philippines.

(gg) later Resources Regions refer to the contiguous clusters of river basins which
are grouped together according to the hydrological boundaries, physiographic features,
and homogeneity in climate whether or not they straddle different local government
units, tor administrative purposes under the Department of Water Resources

(hh) Water Service Provider (WSP) refers to the water district, eny Local
Government Unit (LGU}-run water utility, Barangay Waterworks and Sanitation
Association (BWSA), Rural Waterworks Sanitation Association (RSA), cooperative and
private sector entity that provides water supply services to any given area



(ii) Water supply service refers to any activity comprising Levels |, Il and It] water
supply including bulk suppliers, suppliers to subdivisions, and other water service
providers.

CHAPTER I!
THE DEPARTMENT OF WATER RESOURCES
SEC. 4, The Department of Water Resources - There is hereby created and established
the Department of Water Resources, hereinafter referred to as the Department.

SEC. 5. Mandate of the Department. -The Department shall be the primary agency
responsible for the comprehensive and integrated identification and mapping of all
water resources, planning, policy formulation, and management of the ownership,
appropriation, utilization, exploitation, development, and protection of water resources
in the Philippines to ensure the optimal use thereof for domestic and municipal water
supply, sanitation, irrigation, hydropower, industry, navigation, flood management, and
recreation except fisheries or aquaculture,

The Department shall also be the primary agency responsible for the planning
and policy formulation towards the attainment of universal access to sate, adequate,
affordable, and sustainable water supply, and improved sanitation services for all
Filipinos.

The Department shall be the primary: national agency to enforce Presidential
Decree No. 1067 otherwise known as Tie 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 Rehabilitation Commission created under Executive Order No, 54 Series of 1999
and abolished under Executive Order No. 93 Series of 2019, specifically the following
roles that were transferred to the Manila Bay Task Force and OENR through the latter
EO:

{2} Update and take the lead in the overall implementation of the Pasig River
Rehabilitation Master Plan, which shal! harness the Pasig River's potential for
transportation, recreation and tourism purposes while undertaking the rehabilitation
and restoration of its maritime life; and

(b) Ensure that the easements provided for in the Civil Code and other relevant
laws are enforced. especially in all the esteros and waterways that drain into the Pasig
River as well as abate the clumping of untreated industria! wastewater and sewerage
into the river, including all acts and all acts and omissions in violation of Presidential
Decree (PD} No. 984. s. 1976. as amended entitled, Providing For The Revision Of
Republic 1¢ No. 3931, Commonly Known 1s The Pollution Control Lam, And For Other
Purposes, PD No. 274, s. 1973 entitled, Pertaining To The Preservation, Beatification,
Improvement And Gainful Utilization Of The Pasig River, Providing For The Regulation


And Control Of 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. Guiding Principles, -in the pursuit of its mandate, the Department shall be guided

by the following key principles:

(a) The concept of good water governance for water security and sufficiency shall be
adopted across all levels of governance by stakeholders such as the national
government, local government, non- government organizations, private
organizations, individuals, even global societal actors, and in various sectors such
‘as water supply, irrigation, fisheries, hydropower, navigation, ecosystem services,
flood management, climate change, ang recreation, It shall entail publicly
transparent, socially accountable, and multi-stakeholder participatory water
policy planning, management, and decision-making processes.

(b} Access to safe water supply and improved sanitation is a human right that needs
to be fulfilled and Protected.

(ch integrated Water Resource Management 1WRM) shall be adopted as the basic
framework which is the coordinated development and management of water,
land, and related resources within hydrological boundaries to optimize economic
and social welfare without compromising the sustainability of vital ecosystems,
‘The IRM Framework shall include an enabling environment that utilizes proper
policies, legal instruments, and institutional frameworks for effective
implementation, participatory and collaborative water policy and management
decisions, and management instruments for efficient use of updated and
accurate data, science-based decision support systems, proper information,
‘education, communication (IC) 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

nd other aspects, and water management shall be performed at river

wolving all the stakeholders at that particular river basin.

(e) Integrated and accurate data collection and analysis and the use of scientific
decision support systems shall be undertaken in water resources management
including flood modeling and warning systems that are essential for an effective,
efficient, and sustainable water resources management system

{f} The development of water resources shall include strategies for the mitigation of
water-related hazards and climate change adaptation.



{g) Water resources and services should be provided where they are intended and
most needed so that water is fairly and sustainably managed.

{h) The proper operation and maintenance of waterworks systems resulting inthe
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 shail therefore supervise and contro! the
establishment, operation, and maintenance of such systems.

SEC 7. Objectives of the Department, - The Department shall:

{a} Promote and adopt water demand management as a national policy to
ensure that water is optimized, that water efficiency and conservation become a way of
life, that the recycling and reuse of water and treated wastewater are widely practiced,
that water is properly priced to encourage efficient use and conservation and that
rainwater, flood waters, and runoffs are captured or harvested, stored and treated for
future u:

(b) Prioritize and seek the immediate attainment of universal access to safe,
adequate, affordable and sustainable water supply and improved sanitation services for
all Filipinos in @ manner consistent with the protection, preservation, and revival of the
quality of the country's water resources, and to adopt all needed measures to advance
the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature.

(c) Strengthen and coordinate integrated water resources management planning
and policy making to ensure sustainable and fair allocation and efficient use of water
resources among competing uses and users;

(d) Ensure that integrated water resources management is strongly coordinated
with land use and coastal and multi-hazard planning and management;

(e) Develop sustainably, and manage water sources and weter resources toward
water security, taking into consideration water, land, and related resources aimed at
increasing water dependability for different uses, optimizing economic benefits and
social welfare without compromising the sustainability of vite! environmental systems;

{f) Strengthen and coordinate policy making and planning towards ensuring the
availability of water for food security and energy security, as well as towards the
protection of communities and environments against flood and other water induced
hazards including sediment hazards;

(g) Ensure that the strategy for water resources development and conservation is
participatory, and that planners, policymakers and users including community members
are involved at all levels;

(h} Develop a standardized pricing framework for water use that accounts for
environmental externalities; and



(i) Ensure that all sources of water, including surface water, groundwater,
rainwater and floodwater are identified, mapped, monitored, conserved and managed
for productive use and the resulting wastewater is managed properly, reused, and
responsibly disposed of following approved environmental standards.

‘SEC.8. Powers and Functions of the Department. - The Department shall have the
following powers and functions: Policymaking and Planning

{a) Ensure that Integrated Water Resources Management (IRM) is adopted as the
strategic framework for water management policymaking and planning in the country
‘and coordinate the implementation, promotion, revision and enhancement of IVRM
plans;

(b) Formulate policies, strategies, and targets in coordination with other relevant
entities to meet the goals and objectives for water supply and sanitation, water quality,
irrigation, hydropower, flood control, stormwater utilization, and urban drainage. Such
policies shall, among other guidelines, integrate the issues of water and sanitation, food
security, energy, environment and fload control, and climate change;

(c) Formulate and develop policies to promote universal access to safe, adequate,
affordable, and sustainable water supply, and improved sanitation services for all
Filipinos;

(d) Regularly update, every five years or as deemed necessary by the
Department, and in consultation
‘with other agencies and stakeholders, the NWRMP following the |WRM framework and
integrate therein 2 national land use plan;

(e) Undertake river basin survey, inventory and appraisal of water and related
resources, and develop comprehensive basin-wide plans of storage, retardation, and
control to maximize conservation and multipurpose use of water in the basin;

{f) Conduct continuing hydrological and hydrometeorological surveys and studies
of the country's renewable water supply, and establish, operate, and maintain
observation station networks with a view towards formulating long-term policies to
balance the sustainability and optima! multiple use of water resources, defining the
hydrologic boundaries of basins of the existing water supply sources and developing or
updating and implementing countrywide comprehensive basin- wide master plans;

{g} Strengthen and coordinate policy making and planning for flood management,
integrated with stormwater or urban drainage and appropriate retention or retarding


basins in order to harvest and reuse water, and to plan against, prevent, and minimize
the detrimental and catastrophic effects of flooding;

(h) Assist and provide the National Economic and Development Authority (NEDA)
with the required data and input from the water sector in the formulation of the
country's short-term and long-term strategic development plans and actions, and
recommend to the NDA Board the adoption of general policies and guidelines for
water resources development,

()) Review, approve, and provide oversight over all water-related development plans
and programs of any agency within the context of the NRMP, and overall national
plans and programs;

{j) 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, climat
resiliency, and disaster risk reduction are integrated into any water resource
management planning, policy making, and the design and construction of water
infrastructure;

(I) Ensure that the planning and design of water infrastructure considers the highest
efficiency and most appropriate technology and quality, in accordance with
national development objectives;

(m) Review existing guidelines appropriate for private sector participation in
the water sector and submit recommendations to the Public-Private Partnership
(PPP) Center of NEDA and other concerned agencies to promote and enable more
PPPs in the sector;

(n) Build a central repository of water data and effect inter-sectoral, inter-agency,
and inter- departmental coordination on all aspects of data gathering and
management for water resources development planning and compel the
submission of statistics and data on water utilization with the aim of
operationalizing the integrated approach to water resources management;

(0) Ensure the effective implementation of all the provisions of Republic Act No.
9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter I! of
Presidential Decree No. 856, otherwise known as the Code on Sanitation of the
Philippines;

(p) Promote Philippine participation in information sharing and education on best
practices in support of international efforts to achieve universal access to safe
water and improved sanitation; and the integration of water, energy,
‘environment and food security; and



(q) Issue and promulgate rules, regulations and guidelines as may be necessary to
implement and enforce its powers and functions under this Act.

jl Resource Regulation

{a} Manage and conserve the country’s water resources to ensure the optimal use
thereof for domestic water supply, sanitation, irrigation, hydropower, navigation,
flood control, and recreation purposes, and enhance and maintain water quality,
conserve watersheds, control water pollution, and restore the environment,
without compromising the natural ecosystem functions and services;

(b) Regulate and control the utilization, abstraction, diversion and development of
water resources, taking in consideration their equitable distribution among
competing demands and determine the standards of beneficial and priority uses
of water in times of crisis and national emergencies;

(c} Formulate, promulgate, and enforce rules and regulations for the development
and optimum use of water resources and its administration and management,
including coherent water protocols, operating rules of all existing and future
water infrastructure; general criteria, methods and standards for basic data
collection and project identification, formulation and planning, and appropriate
sanctions to be imposed for non-compliance;

(d) Regularly review regulations prescribed by any government agency pertaining to
water use, exploitation, development, and conservation or protection of waters,
water resources, and watershed or basin areas with respect to this Act;

{e} Impose fees or charges, as may be deemed necessary for water resources
conservation and protection, such as:

(2) Polluter's Fee, which shall be based on the net waste load depending on the
wastewater charge formula pursuant to Republic Act No, 9275;

{2} Raw water price, which shall take into account, among others, the scarcity of
water; and

(3) Appropriate payment structures for environmental services:

(f) Deputize I,GUs 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 surver and appraisal of surface and
groundwater potentials of the country, and determine the annual renewable
water available per water resources region;


{i} Maintain 2 database that will contain updated relevant information on water
data which will be accessible by relevant and authorized users;

(j) Develop and continuously update a computerized decision support system that
incorporates data management systems relating to acquisition and database,
model base in terms of physical design, planning and decision models, and user-
friendly interface concerning graphical and visualization tools;

(k) Conduct and promote special studies and research on water economics and other
water resources development and management issues and concerns such as.
climate change, weather modification, flood monitoring and modeling,
environmental quality, and desalination; and

(I) Raise public awareness through information, education and communicetions
programs, and build capacities for informed participation in water resources
management at the national and river- basin level.

Ill, Institutional Arrangement with Public Water Organizations

{a} Develop guidelines including rules of partnership, between and among the
Department, field offices of national government agencies, \Gs and other
stakeholders in water resource management, and facilitate the establishment of
multi-stakeholder river basin organizations (RBOs) per river basin, and strengthen
and support existing RBs and monitor their activities;

{b) Develop materials for capacity building and training of prospective RBOs;

{c) Authorize its representatives or any deputized agent to enter any property of
public dominion with or without prior notice and consent, any private land,
building or enclave, whether inhabited or not, for the purpose of conducting
hydrologic surveys and Investigations, including assessing and evaluating the
conditions of water facilities installed, and determining compliance with water
laws end standards;

(¢) Provide rechnical assistance to water users including farmers, communities, and
LGs and other water service providers (SP) whether directly or in coordination
with other agencies on all aspects of integrated water resources management;

(e) Respond to consumer complaints, and ensure the adequate promotion of
consumer interests;

{f) Deputize agents, whether from the public or private sector, to assist in the
performance of any of the powers and functions of the Department;

(g) Appoint, hire, and maintain adequate staff and personnel, advisers or
consultants with suitable qualifications and experience, as necessary, subject to
existing rules and regulations.

1V. Coordination


(a) Coordinate and integrate water resources development activities of the country
within the context of national plans and policies for social and economic
development;

(b} Coordinate with other government agencies, universities, academe and private
professional groups in all aspects of data gathering, the conduct of special studies
and research on all related aspects of water resources management and
development such as climate change, environmental quality, desalination, and
the development of operating strategies, procedures, and protocols and
accompanying computerized decision tools for major water faciliti

{c) Coordinate with the concerned and relevant agencies engaged in flood control,
flood risk management, and drought risk management; and

(8) 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 (PPFOP).

Vv. Other Functions

(a) Create when necessary, water resource subsidiaries, instrumentalities, and
entities to engage in water transmission, water distribution, waste water
treatment and management, and sanitation in accordance with existing relevant
laws.

{b) Enter into contracts, joint venture agreements or understanding, public-private
partnerships, and memorandum of agreements or understanding, either
domestic or foreign, relating to investment and financing water-related projects,
under such terms and conditions as the Department may deem proper and
reasonable subject to existing laws.

{c). Exercise such other powers and functions necessary or incidental to the effective
administration and management of the country's water resources.

SEC. 9. Secretary of the Department of Water Resources. - The authority and
responsibility for the exercise of the mandate of the Department and for the discharge
of its powers and functions shall be vested in the Secretary of the Department,
hereinafter referred to as the Secretary, who shall:

{a} Advise the President on the promulgation of executive or administrative
orders, regulations, proclamations and other issuances relative to matters
under the Jurisdiction of the Department;


(b) Establish the policies and standards for the operation of the Department
pursuant to the President's guidelines;

{¢) Promuigate rules and regulations necessary to carry out the objectives,
policies, and functions of the Department;

(d) Exercise supervision and control over all bureaus and offices under the
Department;

(e) Supervise all attached agencies and corporations in accordance with law;

(Ff) Represent the Department in contracts, awards, and other similar
agreements;

{g) Delegate authority for the performance of any power of function, as defined
herein to officials and employees under his direction as deemed appropriate;

{h} Act as the Chairperson of the governing board of the attached agencies of the
Department;

{i) Designate and appoint officers and employees of the Department, excluding
the Undersecretaries, Assistant Secretaries, and Regional and Assistant
Regional Directors, in accordance with the civil service laws, rules and
regulations; and

{ij} 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 Planning and Policy and
Undersecretary for Missionary Water, Indigenous People, and Special Concerns.

The Secretary is hereby authorized to delineate and assign the respective
functional areas of responsibility of the Undersecretaries in accordance with the
mandate and objectives of the Department: 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 ail the operational activities of the assigned units for which the
Undersecretary is responsible to the Secretary; and


{c) Perform such other functions deemed necessary as may be assigned or
delegated by the Secretary to promote efficiency and effectiveness in the
delivery of public services or es 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 SOGs, and the integration of water, energy, environment and food
security,

SEC. 12. . Assistant Secretaries, - The Secretary shall be assisted by six (6)
Assistant Secretaries to be appointed by the President of the Philippines upon the
recommendation of the Secretary: one each for Planning and Policy Service, Decision
Support System Service, Resource Regulatory Service, Comptrollership and Financial
Management Service, Legal and Legislative Service, and Administrative and Human
Resources Management Service.

No person shall be appointed Secretary, Undersecretary and Assistant Secretary
of the Department unless the person is a citizen and resident of the Philippines, of good
moral character, of proven integrity, competence and expertise in water resource
management. Provided, That at least one (1) of the Undersecretaries and at least two
{2} of the Assistant Secretaries shall be career officers.

SEC. 13. Organizational Structure. The Department shall be composed of the
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
Internal Audit Office, the Public Affairs Office, the Water Pollution
Adjudication Board, the Planning and Policy Service, Decision Support System
Service, Administrative and Human Resources Service, Legal and Legislative
Service, Comptrollership and Financial Management Service, Resource
Regulation Service, and the Water Resources Regional Offices.

(b) Attached agencies, - The Department shall exercise administrative supervision
over the following agencies for purposes of policy and program coordination,
monitoring, and evaluation:

(1) The Local Water Utilities Administration (LWUA), whose mandate,
powers, and functions are defined in Presidential Decree No. 198,
otherwise known as the Public Water Utilities Act of 1973, as amended,
shall be transferred from the Department of Public Works and



Highways and attached to the Department. it shall continue to
primarily function as a specialized lending institution for the
promotion, development, and financing of local water utilities. In the
implementation of its functions, the LWUA shall:
(i) prescribe minimum standards and regulations in order to assure
acceptable standards of construction materials and supplies,
maintenance, operation, personnel training, accounting and fiscal
practices for local water utilities;
{ii) furnish technical assistance and personnel training programs for
local water utilities;
{iii} moniter and evaluate local water standards; and
(iv) effect system integration, joint investment and operation,
district annexation and de-annexation whenever economically warranted
‘as amended by Sec. 22, Presidential Decree No. 768.

{2) The Metropolitan Waterworks and Sewerage System (MWSS), whose
mandate, powers, and functions are defined under Republic Act No.
6234, as amended entitled, An Act Creating The Metropolitan
Waterworks And Sewerage System And Dissolving The National
‘Waterworks And Sewerage Authority: And For And For Other Purposes,
shall be transferred from the DPWH and attached to the Department:
Provided, That the MWSS shall continue to facilitate the exercise by the
concessionaires of their responsibility; carry out accounting and
notification functions; monitor, report, and administer loans; perform
related functions in connection with existing projects; manage and
dispose its retained assets; and manage and operate the Umiray-Angat
"Transbasin Project.

(3) The National Irrigation Administration (NIA), whose mandate, powers,
and functions are defined under Republic Act No, 3601 as amended by
Presidential Decree No, 552 and Presidential Decree No. 1702;

(4) The Laguna Lake Development Authority (LLDA}, whose mandate,
powers and functions are defined under Republic Act No. 4850, as
amended entitled, An 1¢ Creating The Laguna Lake Development
Authority, Prescribing Its Powers, Functions And Duties, Providing
Funds Therefor, And For Other Purposes shail be transferred from the
DENR and attached to the Department.

‘The LIDA shall continue to serve as the lake management and
development authority similar to a multi-stakeholder river basin organization and
shall ensure the implementation of the Laguna Lake Master Plan which shali be
updated by the Department to ensure alignment with the NWRMP,



Any other agency performing water resources management, conservation and
protection functions may be transferred to the Department as the President deems
necessary.

{c) Offices, Functions and Personnel to be Completely Subsumed under the
Department. - The following offices with their powers, functions, personnel,
applicable funds and appropriations, records, equipment and property shall
be subsumed under the Department:

(2) The National Water Resources Board (NWRB) with all its divisions and sections,
whose mandate, powers and functions are provided in Presidential Decree No.
424, as amended;

{2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and
functions are provided in Executive Order No, 510 and Executive Order No. 816,
as amended;

(3) The Manila Bay Coordinating Office (IMBCO) of the DENR which was strengthened
by virtue of DEN Administrative Order DA) 2011-01 to coordinate the efforts of
the fourteen (14) national agencies covered by the Mandamus Order of the
Supreme Court to rehabilitate Manila Say;

(4) The Water Resources Management Division of the Bureau of Soils and Water
Management of the Department of Agriculture (DA);

(5) The Water Supply and Sanitation Unit of the Department of the Interior and
Local Government {DILG)}; and

(6) The Water Quality Management Section of the Environmental Management
Bureau (EMB) of the DENR.

(8) 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) The hydrological surveys monitoring of stream flow and water data collection
function of the Bureau of Design and Bureau of Research and Standards of the
DPWH;

(2) The protection and conservation of natural wetlands such as lakes, marshes,
swamps of the Biodiversity: Management Burenu of the DENR; and

(4) The planning, programming, administration, monitoring, management of the
National Sewerage and Septage Management Program ({NSSMP) by the DPWH.

(S) The flood management planning and sediment management function of the
Flood Control Management Cluster of the DPWH;



{6) The Water Resource Management Division ang the water research functions of
the Soils and Water Research Division of the Bureau of Soils and Water
Management under the DA. 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 Planning and Poly Service shall provide the Department with the capability to
undertake water infrastructure development planning and programming, and
shall exercise the following functions:

(i) Advise the Secretary on all matters relating to water resources planning;

(ii) Assist the Undersecretary for Planning and Policy on all matters related to the

specific functions of the position;

(iii) Formulate strategies and priorities for water resources management and

development consistent with national development objectives, and initiate or

undertake relevant surveys for development planning;

{iv) Develop and regularly update a comprehensive and integrated National Water

Resources Management Plan and ensure its integration into existing land use plans;

(v) Coordinate river-basin planning following the integrated water resources
management framework and the river-basin approach;

(vi) Formulate or update existing River Basin Master or Comprehensive Plans which
includes all aspects of water management and development such as water supply and
sanitation, irrigation, flood control and stormwater or urban drainage, drought risk
management, water resource development systems and other public water works
projects, including phasing of implementation;

(vii) identify, based on the river basin master plan, priority packages for water
infrastructure development per river basin, including water supply, sanitation, irrigation,
flood control and stormwater or urban drainage, drought risk management, water
resource development systems and other public works projects, package project
proposals for funding and prioritize project implementation and the allocation of
funds and other resources and undertake or supervise and evaluate the conduct of
feasibility studies and project preparation thereof;

{viii} Evaluate and appraise all regional and inter-regional infrastructure water
development plans and programs as to their feasibility and consistency with approved
strategies and medium and long -term plans;

(ix) Gather, analyze, and organize needed statistical data and information;

(x) Provide technical assistance related to its functions to the other services,

bureaus and the regional offices as needed;


(xi) Conduct hydrological and hydraulic surveys and assessments of surface
waters;

(xii) Develop general criteria and standards on project investigation, formulation,
planning;

(xiii) Develop guidelines and standards on social inclusion in water resources
management and ensure policies, programs and plans are compliant with the gender
and development framework of the government;

(xiv) Coordinate closely with PAGASA for rainfall and other climate data which
shall be considered in the planning for water resources development and management
and for various water intrastructre:and

(xv) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective attainment of the abovementioned objectives.

(2) The 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 base in terms of physical design, planning and decision models including
services related to networking, data management, and information- and
knowledge or learning management systems for administrative and non-technical
support It shall provide the Secretary timely reports on the status of various
Department projects and activities. For this purpose, it shall exercise the
following functions:

(i) Provide the Secretary the necessary data and processed information to aid in
policy and management decisions under the mandate of the Department;

{il) Publish available real-time raw water data as well as verified or validated
water data In print or electronic form using latest internet technology;

{ili} Conduct and publish in print and/or electronic form, standard data analysis
such as basic statistical analysis, trend analysis, analysis of runs, and cluster analysi
{iv) Develop and continuously update water resource management,
computerized decision support systems (DSS) that Incorporate data management
systems relating to acquisition and database, model base in terms of physical, design,

planning and decision models, and user-friendly interface such as graphical and
visualization tools,

‘The DSS is composed of: 1) a measurement or data acquisition system; 2)
information or database management system; 3) analytical and numerical models for
design, planning, decision or evaluation purposes, and +) a user-friendly interface which
includes graphical interface or visualization tools.

{v) Develop and maintain specific models to include the following;

a) long-term climatologic and weather forecasting model



b} watershed models and river-flood plain models;

c} groundwater models and coupled to surface water models;

d} flood forecasting model for major rivers;

€) optimization-simulation management models for watershed
conservation. conjunctive surface and groundwater use, irrigation scheduling,
normal and emergency operations or multi-purpose reservoirs; and

{f} water quality and ecological models.

(vi) Develop and administer the management information system and knowledge
systems of the Department to:

a) Retrieve, process, and monitor information on all projects and activities in the
web porta
Conduct and apply systems and process engineering, software development,
software configuration management;

Develop and manage its corporate database, unified database for water
industry, data warehouse, Other water Intormation resources, ibrary services
and document management and archiving services;

@) Develop and manage its information and Communications Technology (ICT)
infrastructure and |C related-services including computer networking and
voice communications services and data exchange, and

Manage the literacy and training services of the Department on various ICT
and, Knowledge Management (KN) tools and applications, including
information and knowledge management.

(vi) Perform such other related functions and activities which are necessary for
the effective administration of the management information and knowledge systems of
the Department.

6)

¢)

(3) The Administrative and Human Resource Service shall provide the Department
with services relating to human resources development, personnel, records,
facilities maintenance, medical and dental, security, property and procurement
services, and shall exercise the following functions:

( i) Advise the Secretary on all matters relating to internal administration and human
resources management,

{ii) Prepare and implement an integrated personne! development plan that shall
include provisions for merit promotions, performance evaluation, job rotation, incentive
awards systems, and health and welfare services;

(ili) Provide services related to human resource-training, education and
development including manpower, career planning and forecasting, and development of
Indigenous training materials;


(iv) Develop, establish, and maintain an efficient and cost-effective property
procurement system and facilities and coordinate or otherwise interface with relevant
‘agencies, whether government or private, for the purpose of developing or upgrading
the system,

(v) Develop, establish, and maintain an efficient and effective security system
‘covering, among others, personnel, physical instaltations, facilities, equipment,
documents and materials including the conduct of security investigations;

(vl) Coordinate with the appropriate government agencies for a more efficient
conduct of administrative processes,

(vii) Develop, establish, and maintain an efficient records system;

{viil) Provide assistance in its area of specialization to the Department Proper,
bureaus and regional and water district offices and, when requested, to the government
‘agencies and corporations attached to the Department; and

{ix} Perform such other related functions and activities which are necessary for
the effective management of the resources of the Department, including its human
resources.

(4) The 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, legal counselling and other matters of
law, and shall exercise the following functions:

(i) Advise the Secretary on all matters relating to legal and legislative affairs;

(ii) Prepare Department contracts and legal instruments, review and interpret all
contracts and agreements entered into by the Department and evaluate all legal
proposals;

(iii) Conduct administrative investigation and the review of administrative charges
against officers and employees of the Department;

{iv) Exercise functional jurisdiction over the legal staffs of Regional Offices;

(v) Provide legal assistance to the Department Proper, the bureaus and regional
offices and when requested, the attached corporations;

(vi) Develop and prepare the Department's Legislative Agenda, recommend
presidential certification of the urgency of priority water bills, and other water-related
legislation;

(vil) Coordinate and maintain linkages between and among the various offices,
bureaus, regional offices and attached agencies to the Department along with other
government agencies on policy matters affecting the Department's mandate in relation
to legislation;

(viii) Perform liaison and networking activities in relation to the enactment of related
laws relating to water resources Issues in legislative policymaking bodies such as the
Senate of the Philippines, the House of Representatives, and the various Sanggunians;



{ix} Monitor the progress of the Department's priority or certified bills to ensure
their passage; and

(x) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

(5) The Comptroliership 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 ang receipts, budgeting and cash management, project finances and
financial systems and procedures;

(li) Prepare budget proposals and pursue formal budget authorizations, undertake
budget execution, and prepare and submit all appropriate reports to the proper offices;
{iil) Develop and maintain accounting, financial and assets management systems,

procedures and practices in the Department Proper, Bureaus and Regional Offices;

{iv) Review and appraise systems and procedures, organizational structure, assets
management practices, accounting, and other records, reports, and performance
standards such as budgets and standard costs of the Department, bureaus, and regional
offices;

{v) Provide assistance in its area of specialization to any unit of the Oepartment eng,
when requested, to government corporations and councils attached to the Department;
and

{vi) Perform such other related functions and activities which are necessary for the
effective financial management of the Department,

(6) The Resource 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 ae
future rules and regulations which the Department shall promulgate;


(v) Adjudicate water use conflicts; and
(vi) Perform such other related functions and activities which are necessary for
the effective regulation of water-related services.

(7) The internal. Audit Service shall regularly conduct a comprehensive audit of
various Department activities and shall exercise the following functions:

(i) Advise the Secretary on all matters relating to management control and
operations audit;

{ii) Conduct a performance audit of the management and operations of the
Department, its activities, the performance of all units, and determine the degree of
compliance of all operating units with established objectives, policies, standards,
methods and procedures, government regulations and contractual obligations of the
Department;

(iii) Review end 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

(vi) Perform such 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 water-
related issues, including important announcements on policies and activities of
the department that is of interest to the general public. It shall ensure that
women, men, elderly, and people with disabilities shall be consulted, organized
and take active part in all aspects of water resources development and
management activities. It shall also lead the planning and organizing of special
‘events, and shall exercise the following functions:

{ 1) Public Awareness

a) Advise the Secretary on matters pertaining to public affairs;

b) Develop and supervise the implementation of comprehensible communications
programs on relevant policies, programs and plans of the Department;

c) Produce and supervise the dissemination of communication materials in line with
the priorities of the Department and national government public information
programs;

d) Conduct public opinion and attitude surveys to identify the interests and
concerns of the stakeholders of the Department;


2) Establish policies on the presentation and publication of the content of the
communication materials for dissemination to print and broadcast media;

f} Establish and maintain linkages with the tri-media and a presence in social media;

8) Coordinate the conduct of interviews and news conferences;

hh) Make public announcements on matters relating to the work and activities of the
Department through the print and broadcast media, either through press
releases or live interviews;

i) Coordinate with various Department units, concerned government agencies, tri-
media and other stakeholders on matters related to the above-enumerated
functions; and

|) Coordinate with the appropriate national government agencies involved in public
information affairs.

(li) Promote Participation

a) Conduct public consultations and discussions;

») Develop and disseminate relevant and appropriate materials and programs for
public information and education, as well as advocacy campaign;

©) Conduct seminars and workshops involving the LGUs and the general public
concurrent water issues and problems: and

d) Conduct capability building seminars of various stakeholders to promote
meaningful participation in the Department's policy making, planning,
development and implementation of various programs and projects.

(iii) Special Events

a) Coordinate the organization and promotion of special events and water exhibits;

b} Act as the focal office for all water related events; and

) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

(f) Bureaus. - The Department shall create bureaus which shall each be headed by a
Bureau Director. The Bureau Director shall be responsible for the efficient and effective
discharge of the functions of the Bureau concerned. The Bureau Director shall be
assisted by one (1) Assistant Director.

(1) Bureau of Flood 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 ma! ment. In integrating land use planning and wat

management, the Department shall harmonize and synthesize plans toenable the

sharing of information between land-use planning and water management

authorities. in this regard, a holistic approach shall be adopted by making the FM a

part of a wider risk or multi-hazard management system thar includes earthquakes,

landslides, fires, tsunami, and other calamities of the same gravity or nature;

{ii) integrate climate change and disaster risk reduction and management in policies
and plans;

(iii) Prepare master plans of flood management and drainage in river basins in
coordination with the concerned water resources region end river basin organizations;

(iv} Prepare master plans for urban drainage in cities and municipalities;

(v) Prepare feasibility studies of recommended measures in the master plans;

(vi) Pian and design structural measures for flood control and drainage;

(vil) implement and collaborate with concerned agencies on the formulation and
adoption of non-structural measures for fiood control and drainage;

(vill) Patrol and investigate rivers, and monitor stream flows; (ix) Conduct post-
disaster investigation and evaluation and damage assessment of flood infrastructures
after extreme events;

(x) Conduct research and development on water and sediment-relted disasters;

(xi) Develop design guidelines, criteria, and standards on flood control and drainage
structures;

(xil) Provide technical assistance to other agencies, |GUs, and other stakeholders;

(vill) Advise the Secretary on declaring flood control areas and recommend
guidelines for flood plain management plans in these areas; and

(xiv) Perform such related activities which are necessary for the effective
performance of its functions.

(2) Bureau of Water Quality Management shall supervise and exercise contro! over all
aspects of water quality management to ensure the sustainability of the country's water
resources and the protection of the environment. It should take into account proper and
integrated treatment of freshwater and wastewater within the whole process. For this
purpose, the Bureau shall exercise the following functions:

{i) Establish water quality guidelines for freshwater and coastal or marine waters as
basis for classifying water bodies in the country. Specifically, develop water quality
indices or composite metrics to measure the quality status and health of natural water
bodies in relation to ecological integrity and function;

(ii) Establish efficient standards for point discharges to receiving bodies of water;

(ii) Establish internationally accepted procedures for sampling and analysis;
{iv}Prepare an integrated water quality management fremework;



(v) Prepare the ten-year water quality management plans for each water quality
management area as part of the River Basin Master Plans and in support of the
NWRMP;

(vi) Classify groundwater sources and prepare a national groundwater vulnerability map;
(vii) Classify or reclassify all water bodies according to their beneficial usages using the
established water quality guidelines established;

{viii} Issue permits, clearances, and similar instruments pursuant to the Clean Water Act
of 2004;

(ix) Collect the wastewater discharge fees for all permittees;

(x) Monitor the compliance of water discharge permittees with the effluent standards;
(xi) Regularly monitor the water quality of major water bodies in the country and
analyze the data to identify possible sources of pollution;

(xii) issue notices of violations and/or cease and desist orders for those found in
violation;

{xill) File the needed cases against violators with the Water Pollution Adjudication Board
WPAB):

(xiv) Serve as secretariat of the WPAB; and

{xv) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

{3} A 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
policymaking which will be vested solely in the Department. The formulation
of the master plan for the nearby river basins such es the Pasig-Marikina
Laguna Lake-Cavite, shall be the responsibility of the Department. Each WRRO
shall perform the following duties and responsibilities:

(i) Formulate or update and coordinate the river basin master plans for river
basins within Its jurisdictions ensuring consistency with the National Water Resources
Management Framework Plan;

(li) Advocate and strongly support the creation and functioning of multi
stakeholder river basin organizations (R8Os) and serve as the secretariat of the said
RBOS;

(ii) Undertake and evaluate the planning, design, and work supervision functions
of the Department for the water infrastructures within the region;

(iv) Ensure the implementation of laws, policies, programs, rules and regulations
regarding the abovementioned infrastructure as well as public and private physical
structures;

{v) Provide technical assistance related to the water-related functions of other
agencies within the region especially the local government;



{vi) Coordinate with other departments, agencies, institutions and organizations,
especially local government units within the region in the planning and implementation
of the river basin master plans;

(vi) 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 mav be necessary; and

(vii) Perform such functions and activities, as may be mandated by law, which

are necessary for the effective performance of the abovementioned objectives.

The Department shall retain existing Project Management Offices as may be
required, which shall be under the supervision and control of the appropriate Weter
Resources Regional Office unless otherwise determined by the Secretary for reasons of
supra- regional scope, magnitude and multi-functional coverage

Each Water Resources Regional Office shall be headed by a Water Resources
Regional Director who shall be responsible for efficiently and effectively carrying out the
duties and responsibilities of the
Office. Towards this end, the Water Resources Regional Director shall exercise
functional and administrative supervision over all units within the region and is
authorized to commit resources and assign personnel to integrated regional water
resources management, water supply and sanitation management, and flood control
and flood risk management initiatives. The Water Resources Regional Director shall also
perform such other related duties and responsibilities as may be assigned or delegated
by the Secretary or as may be required by law.

‘The Water Resources Regional Director shall be assisted by two (2) Assistant
Water Resources Regional Office Directors who shall exercise supervision over (2) the
planning, project design and evaluation function and (2) technical assistance to the River
Basin Organizations within the water resources region.

SEC, 14. Water Pollution Adjudication Board, - There Is hereby created # Water
Pollution Adjudication Board under the Office of the Secretary. The Board shall be
composed of the Secretary as Chairperson, two (2) Undersecretaries as may be
designated by the Secretary, the Director of Water Quality Management
Bureau, and three (3) other representatives from other stakeholders to be designated
by the Secretary as
members.

The Board shall assume the powers and functions of the National Pollution Control
Commission with respect to the adjudication of water pollution cases under Republic
Act No. 3931 entitled, 1n Act Creating The National Water And Air Pollution Control


Commission, Presidential Decree 984 entltied Providing For The Revision Of Republic,
ct No. 3931, Commonly Known as the Pollution Control Law, And For Other Purposes,
particularly with respect to Section 6 letters e, f, g, j, k and Republic Act No. 9275. The
Bureau of Water Quality Management shall serve as the Secretariat of the Board. These
powers and functions may be delegated to the field officers of the Department in
accordance with rules and regulations to bepromulgated by the Board.

CHAPTER IM
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT

SEC. 15. interlace and Institutional Arrangements with Other Agencies ~

{a) The Department of Health (DOH) shall continue to have primary authority and
responsibility for stung and enforcing drinking water quality standards. The Department
shall coordinate with the DOH in this aspect. and shall ensure consistency of standards
and targets, as well as the compliance o permittees with mandated standards

{b) The Department of Environment and Natural Resources (DENR) shall continue
to have primary authority and responsibility for protecting the environment and
managing the country’s watersheds

(c} The Department of Energy (DOE} and the National Power Corporation (NPC)
shall continue to have primary authority and responsibility for establishing and
‘operating hydropower plants, but shall ensure that hydropower plant development
plans are consistent with the National Water Development and Management Plan;

(d) The Department shall coordinate with the DA to ensure agricultural
development that reduces long-term poilution for surface water and groundwater, and
agricultural and industrial economic development that employs water efficiency, water
recycling or reuse, and the appropriate treatment of wastewater:

(e) The Department shall coordinate with the National Disaster Risk Reduction
Management Council (NORRMC) to ensure that its plans and designs for flood control,
flood risk management and drought risk management are aligned with the objectives
and plans of the Department;

(f) The Department shall coordinate with Climate Change Commission (CCC),
Philippine Atmospheric, Geophysical and Astronomical Services Administration
(PAGASA\, and National Mapping and Resource Information Authority (NAMRIA} for
scientific studies, integrated surveys, mapping, charting, and decision support systems

(g) The Department shall coordinate with the Department of Tourism (DOT) on
recreational use of Water resources?


(h) The Department shall coordinate with the Philippine Reclamation Authority
and economic zone authorities on water resources development and water
requirements within reclamation areas and economic zones, respectively; and

{i) The Department shall coordinate with relevant government agencies, including
local government units (LGUs) with respect to development projects and shall ensure
cross-cutting collaboration between and among all water subsectors and facilitate inter-
‘agency subsector coordination strategic development, planning, monitoring and
provision of technical, institutional and financial capacity building support to their
different stakeholders at the water subsector level,

SEC. 16. National Water Sector Policy Board. - The National Water Sector Policy
Board (NISPB) shail be created and shall be headed by the Secretary of the Department
of Water Resources with the Secretary of the National Economic and Development
Authority as the Vice-Chairperson. and the Secretaries of the DOH, DIG. DOE DA,
Department of Socia! Welfare and Development; DPWH; Department of Budget and
Management (DBM); Office of the President, and DENR, and Netional Commission on
indigenous Peoples as members. The Department shall provide personnel to erve as
Secretariat to the Board.

SEC. 17. Pours and Functions of the National Water Sector Policy Board — The
NSPB shall perform policymaking, coordination, integration, supervision, monitoring and
evaluation functions, and shall have the following responsibilities:

(a) Approve the NWRMP which shall serve as a principal guide to water
management efforts in the country and shall be reviewed every five (5)-years
interval, or as may be deemed necessary, in order to ensure its relevance to.
the times

{(b) Provide overall policy direction and recommend policies on water resources
requiring Presidential decision:

(c) Advise the President on the status of water management and supply,
recommend to the President the declaration of a state calamity in areas
affected by water supply, and submit proposals to restore normalcy in the
affected areas;

{a} Ensure @ multi-stakeholder participation in the development, updating, and
sharing of information system as policy, planning and decision-making tools
consistent with IRM.

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, and the Civil Service Commission, and other


applicable laws. The transfer of powers and functions as herein provided shall take
effect within six (6) months of the effectivity of this Act. As such, all attached agencies,
offices, units shall continue to function under their present mandates

CHAPTER IV
WATER REGULATORY COMMISSION
SEC.19, Water Regulatory Commission. - There is hereby created and established
as an independent, quasi-judicial regulatory body to be known as the Water Regulatory
Commission, hereinafter referred to as the Commission, which shall be organized within
‘one hundred twenty (120) days after the effectivity of this Act.

The Commission shall be placed under the administrative supervision of the
Department as an attached agency.

The Commission shall have a 3oard 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 unit and the regional! regulatory units

‘The economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA.
PEZA, and TIEZA are hereby transferred to the Commission, and shall collectively
comprise its central regulators unit for water supply and sanitation services that: {a}
provide services to more than one province; and b’ are owned, operated and/or
maintained by special economic zones and Metro Manila concessionaires,

The regional regulatory units shall be established by the Commission in
accordance with this Act and the rules, regulations, guidelines, and standards that the
Commission shail issue.

SEC, 21. Powers and Functions of the Commission. - The overall authority and powers of
the Commission shall cover and apply to all service providers, whether private or public,
providing or intending to provide levels {! & II] water supply, including suppliers to
subdivisions and for other service providers, sewerage, and/ or septage treatment and
disposal services for domestic, residential, institutional, industrial or commercial use

‘The Commission shall exercise the following powers and functions:

{a) Issue and promulgate rules, regulations and guidelines as may be necessary to
implement and enforce its powers and functions under this Act;


(b) Promulgate and enforce just and reasonable technical standards,
Classifications and measurements of service;

{c) Establish rules and regulations to monitor, avoid, and provide remedies for
any market power abuse or anti-competitive or discriminatory act or behavior
by or against any participant in the water supply and sanitation sector. Upon
finding that a market participant has engaged in, or has fallen victim to such
act or behavior, the Commission shall act to stop or redress the same. Such
remedies may, without limitation, include the imposition of price controls,
issuance of injunctions, requirement of divestment or disgorgement of excess
profits, invalidation of contracts and imposition of tines 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 service;

{f} Impose and collect annual levies determined as 2 percentage or gross
revenue accruing In relation to the licensed activities, and reasonable fees and
surcharges as may be necessary for achieving the purposes, powers and
functions of the Commission;

(eg) Require the submission reports of finances and operations, verified under
‘caths by the owner or president and secretary of the board of the licensee;

{h) Determine and require the monitoring and submission or such data,
statistics and other information from the regulatory units and any or all
licensees as may be necessary for the effective and efficient exercise of its
duties, functions, powers and responsibilities;

(i) Investigate, motu propio or upon a written complaint, any matter concerning
the operation of the service and issues on price manipulation and anti
competitive behavior;

(j) Impose penalties and fines against any licensee or against its owners,
directors, officers, agents or representatives for any violation of this Act or of
the license, order, rule regulation or requirement issued by the Commission;

(k) Require any licensee to pay the actual expenses incurred by the Commission
Jn any investigation if it shall be found that a licensee violated any provision of
this Act or of the license, order, rule regulation or requirement issued by the
Commission;

(I) Advise, apprise and coordinate with other relevant agencies or the national
cor local government on any matter relating to water supply and sanitation
services;

(m)  Deputize agents, whether from the public or private sector, to assist in the
performance of any of the powers and functions of the Commission;



(n} Appoint an interim or temporary management committee appeal and after
due hearing, to ensure continuity of service in case a licensee fails to meet
conditions of the license and the concerned Regulatory Unit tails or refuses to
appoint an interim management committee as provided in the following
section;

{o) Appoint, hire and maintain adequate staff and personnel, advisers, or
consultants, with suitable qualifications and experience, as necessary;

(p) Exercise original and exclusive jurisdiction over all cases contesting rates,
fees, fines and penalties imposed by the regulatory units in the exercise of
their powers, functions and responsibilities, as provided under this Act, and
over all cases involving disputes between and among participants or
stakeholders in the water supply and sanitation services; and

(q) Such other incidental! powers and functions as may be necessary to attain the
objectives of this Act.

SEC. 22. Powers and Functions of ale Regulatory Units, - The regulatory units of
the Commission shall have the following powers and functions:

{a) Issue licenses authorizing the operation of water supply and sanitation services in
any specified area or areas within the Philippines;

(b) Impose fines, charges and other penalties upon any provider and/or its officers
and stockholders who shall tail or refuse to register or obtain a license prior to
operation or commencement of business, as provided hereunder;

(c) Review, determine, fix, and approve, consistent with the rules, guidelines,
procedures and methodologies which the Commission shall provide, proposed
water and sewerage and septage management tariff, rates and charges that
licensees may impose upon their consumers;

(d) Appraise and value property and equipment used by licensees in providing water
supply and sanitation services;

{e) Enforce technical, financial, and other performance standards set by the
Commission for licensees or unities;

(f) 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 connected with the
maintenance or operation of the service, and make such order or
recommendation as the public interest may warrant;

{h) Require the review and/or approval of contracts or agreements that may impact
on the tariff and mates of service provision entered into by service providers


upon petition or motu propio 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;

(j) Impose and collect annual levies determined as a percentage of gross revenue
accruing in relation to the licensed activities, and reasonable fees and surcharges
as may be necessary for achieving the purposes, powers, and functions of the
regulator;

{k) Conduct benchmarking and monitor the performance of licensees or utilities
under their jurisdiction, and publish reports detailing the results thereof, as may
be necessary or required by the Commission;

(1) Amend, modify, suspend, or revoke any license issued by them, after due notice
and hearing, on any of the following grounds:

(1) when the tact and circumstances on the strength ot 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 sound 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;

(m) Appoint an interim management committee to ensure continuity ot
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 2 collegial body composed of five (5) full-time members
consisting of a Chairperson and four (4) members, who shail ali be appointed by
the President of the Philippines. All members of the Commission must be citizens
and residents of the Philippines, at least thirty five (35) years of age, and of good
moral character, of recognized integrity and competence in the field of law,
business, commerce, finance, accounting or public administration water or utility
economics, management, physical or engineering services, hydrology and other
related services, with at least three (3) years of actual and distinguished
‘experience in their respective fields of expertise; Provided, That out of the four
(4) members of the Commission, least one (1) shall be a member of the Philippine


Bar with at least ten (10) years of experience in the active practice of law, and at
least one (1) shall be a certified public accountant with at least ten (10) years of
experience in active practice;’

{b) The term of office of each member of the Commission shall be seven (7) years:
Provided, That among the members first appointed, the Chairperson shall serve
for a period of seven (7) years, two (2) members shall serve tor tive (5) years end
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 shal! be made only for the unexpired term: rovided,
finally, That in no case shall any member serve for more than seven (7) years in
the Commission;

(c) The Commission shall meet as often as may be necessary on such day or days as
the Chairperson may fix. The presence of at least three (3) members of the
Commission shall constitute a quorum which shall be necessary for the
transaction of any business. The affirmative vote of majority of the members of
the Commission where a quorum is present shall be necessary for the adoption
of any order, resolution, decisions, or other act of the Commission in the exercise
of its quasi- judicial functions; Provided, That in promulgating rules, regulations,
guidelines and in exercising its quasi-legisiative functions, an affirmative vote of
three (3) members shall be required;

{d) The Chairperson of the Commission shall exercise genera! executive control and
supervision over the Commission and its members, staff and personnel, agents
and representatives. Within three (3) months from the creation of the
Commission and the appointment of all Members of the Commission, the
Chairperson shall determine and establish the organizational structure and
plantilla positions necessary to carry out the powers and functions of the
Commission, including those of the central and provincial! regulatory units
subject ta the review and approval or the DBM.

The plantilla positions of the Commission shall be filled by regular
appointments in accordance with Civil Service laws, rules, and regulations.
Members of the Commission shall enjoy security of tenure and shall not be
suspended or removed from office except for just cause as specified by law;

(e) The Chairperson and members of the Commission or any of their relatives
within the fourth civil degree of consanguinity or affinity, legitimate or common
faw, shall be prohibited from holding any interest whatsoever, either as investor,
stockholder, officer or director, in any company or entity engaged in provision of
water supply and distribution, septage management and sewerage services and
must, therefore, divest through sale or legal disposition of any and all interests in



water sector upon assumption to office,

SEC. 24. Secretarial 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 is functions;

{b) Coordinate with Regulatory Units to ensure proper implementation of the

rules, regulations andguidelines promulgated by the Commission;

{e) Monitor and assess activities of the Regulatory Units vis-a-vis their respective

annual performance plans and targets;

(d) Maintain a database on the water supply anc 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, render a report on the proceedings of the Commission, and administer
oaths in all matters falling within the jurisdiction of the Commission.

The Executive Director shall be responsible for the effective implementation of
the policies, plans, programs, rules, regulations and directives of the Commission,
Coordinate and supervise the activities of the different operating units under the
nd perform such functions as may be assigned by the Chairperson and/ or
other members of the Commission

SEC. 26. Compensation end Other Emoluments, - The compensation of the members of
the Commission and its staff shall conform to provisions of Republic Act No, 0758 as
amended, otherwise known as the Compensation and Position Classification Act of
1989.

CHAPTER V
REGISTRATION AND LICENSING

SEC, 27. Registration and Licensing of All Water Supply and Sanitation Services, - All
water supply and sanitation service providers, including bulk water suppliers and those
providing services to subdivisions and other service providers, shall register with the
Commission and, subject to such rules, guidelines, procedures and other issuances of
the Commission, obtain a license to operate rom the appropriate regulatory units.


The Commission shall ensure that the grant and revocation of licenses are carried
‘out fairly, transparently, and without discrimination, |ssuances of the Commission shall
specify, among others, the qualifications, requirements, and procedure tor the grant
and revocation of licenses including the standards and performance targets that shall
continuously be complied with to keep the licenses valid.

Unless otherwise provided in this Act or by the Commission, no public water
supply and sanitation service provider shall commence or conduct the business of
providing-water supply and sanitation services without first obtaining a license.

Concession agreements and other contracts for water supply provision and water
sanitation and treatment services currently existing shall remain valid and enforceable
unless otherwise terminated, after due notice and hearing for reasons provided in the
existing terms and conditions under the concession or service agreement or contract, or
when invalidated by the Commission, after due notice and hearing, where national
security, national emergency Or public interest so dictates,

SEC 28. Conditions of License. - The Commission or the concerned regulatory unit, may
impose such conditions on the licensee as it may deem necessary, such as:

(a) Tariffs, rates and charges that may be imposed from its customers or consumers;

(b} Term fixing the duration of the privilege;

(c) Grounds for modification, suspension or cancellation of the License;

(d) Minimum technical performance and service level stendards;

{e) Expansion targets and service level improvements over time;

{f) Restrictions or conditions for transferability of the business or controlling
interest in the business;

{g) Reportorial requirements and obligations of the grantee;

{h) Submission to annual performance audit by the Commission or its duly
authorized representatives.

The Commission shall specify the requirements and procedure for existing holders of \
Certificate of Public Convenience (CPC). Certificates of Public Convenience and Necessity
({CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by LWUA, to
convert their existing certificates into licenses to operate in accordance with Sec. 27
herein.

Allexisting providers of water supply and sanitation services without a legal and
valid Certificate of Public Convenience, Certificate of Public Convenience and Necessity,
or Certificate of Conformance shall register with the Commission and apply for a license
within six (6) months from the effectivity of this ect


SEC. 29. Rights and Duties of Licensees. -
Any person granted a license under this Act shall have the obligation to ensure
that licensed activities are conducted to further public interest and, in particular:

(1) Foster the maintenance and development of efficient, coordinated, and viable
‘operation of Their licensed actives;

(2) Ensure that their water Supply and Sanitation services ere provided in a diligent,
conscientious end workman like manner, in accordance with applicable laws
rules and regulations issued by the Commission and the generally accepted
standards and practices of the water supply and sanitation industry; and

{3} Comply with drinking water quality requirements and standards that may be
established by the Commission.

(b} Any person granted a license under this Act shall, to the extent allowed by law
and specified in the license, has the right to acquire or lease land, lay or repair water or
sanitation main lines and other relevant facilities in public wars to full the terms and
conditions under the license;

{c) Subject to any condition or limitation laid down in the license, a licensee may
discontinue water supply and sanitation services to @ customer it such customer
defaults in the payment of fees due to the licensee for the water supplied or sanitation
services provided, or for acts of pilferage pursuant to Sections 8, %, 10, and 11 of
Republic Act No. 8041, otherwise known as the Water Crisis Act of 1995.

d) Anv license issued under this Act shall contain provisions designed to ensure that
licensees:

(1) Publishthe Tariff and other charges approved by and the terms and conditions
imposed by the Commission tor the provision of water supply and sanitation services;

(2) Prepare, within three (3) months from the issuance of a license, in consultation
with its customers, a Customer Service Code specifying the manner and procedure for:

(a) metering, billing, and collection of the licensee's approved taritt and other
charges, {b) disconnection or suspension of service in case of non-payment of tariffs
and/or other charges, or acts of pilferage, and (c) recommendation and recovery of
arrears in tariffs and other charges;

(3) Maintain financial accounts in accordance with the manner and procedure
specified in the license and as may be required by the Commission; and

(4) Maintain and upon request by anyone during regular office hours, promptly make
available for scrutiny and inspection such data, statistics and other information, as may
be required by the Commission.


SEC. 30. Setting Tariffs, Rates, and Other Charges. - Regulatory units shall establish
tariffs, rates and other charges which are falr and reasonable, and ensure economic
viability and a fair return on investments.

Tariffs, rates and charges shall be based on and consistent with a rate-setting
methodology that the Commission shall. after due consultation, define and publish,
taking into account the following, among others:

{a) Reasonable and prudent capital and recurrent costs of providing the service
including a reasonable rate of return on capital;

{b) Efficiency of the service;

{c) Incentives for enhancement of efficiency;

{d) Willingness to pay of the customers/ consumers;

{e) Equity considerations; and

{f} Administrative simplicity.

Tariffs, rates, and charges set by the regulatory units shall be presumed valid and
reasonable uniess a protest or contest is filed with the Commission

SEC.31. Direct Access. - Fifty-one (51) percent of the registered water consumers in a
municipality, city or province may petition for direct access to water from any water
service provider subject to concurrence by the service provider and approval by the
Commission. The Commission shall promulgate rules and procedures tor this mode of
service.

SEC. 32. Innovative Schemes to Improve Efficiency and Management of Systems, - The
‘Commission shall promote innovative schemes such as the consolidation or integration
‘of water supply and sanitation services, or providers In the same service area, where it
shall result in improved efficiency, service expansion and lower-costs.

To this end, the Commission shal! 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 THE COMMISSION

s Before the Commission. For the purpose of any investigation,
inquiry or proceeding, the Commission shall:


(a) Issue subpoena duces decum and subpoena ad testificandum;

(b) Appoint hearing otticers to hear and receive evidence on behalf of the
Commission;

{c} Cite any person or party tor contempt tor refusal to appear, testify, or comply
with an order of the Commission on any matter that is the subject of
investigation, inquiry or proceeding before the Commission.

SEC. 34, Orders and Decisions of the Commission. - Any order, resolution, or decisions of
the Commission shall be promulgated promptly, expeditiously, reasonably, and in
writing, and shall state clearly and distinctly the facts and law on which it is based.

The Commission shall publish and make available for public inspection, all
decisions and final orders in the adjudication of contested cases or applications
SEC. 35. , Appeals Procedure and Probibition-1gainst Injunction.

{a) The orders, rulings, and decisions of the Commission are final and executory
unless appealed to the Court of Appeals within fifteen (15) days from receipt
of notice of such order, ruling or decision: 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 tixed by the Commission, to answer tor damages occasioned
by the suspension or stay of execution of such orders, rulings, and decisions;

{b) No injunction may be issued by any court or administrative agency to

restrain any proceeding before, or the implementation or execution of any

order, ruling, or decision of the Commission, except on the basis of a

question of law brought before the Supreme Court on certiorari;

Any act or decision of the Commission shall not be invalidated merely

because of a defect or irregularity in, Or in Connection with, the appointment

or vacancy in the Office of the Chairperson or any other member of the

Commission.

c

CHAPTER VIL
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

SEC. 36. Interface with Other Sector Regulators. —

(a) The DENR shail continue to exercise primary jurisdiction over programs aimed at -
protecting the environment and the quality of water sources from waste and
pollution, and shall promulgate rules, regulations, and standards in this regard.
‘The Department of Health (DOH) shall continue to exercise primary jurisdiction


over the determination and enforcement of standards for quality drinking water
and sanitation.
{b) The Commission shall coordinate with the:

(1) DOH - to ensure that the standards 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
andimpounding of water

SEC, 37. Transfer of Rights and Obligations. - The Commission shall by virtue of this det.
Be subrogated to all the rights, and assume all the obligations, of the Water Utilities,
Division of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of
all special economic zones, and all other government agencies and units whose powers
and functions have been transferred to the Commission,

‘The transfer of powers and functions to the Department of the concerned
agencies as herein provided for, shall be deemed completed within six (6) months after
the effectivity of this Act. The transfer of powers and functions shall include all
applicable funds, personnel, records, property and equipment, as may be necessary. The
same shall apply to agencies which have been attached to the Department by virtue of
this Act

All agencies transferred, subsumed and attached to the Department, shall
continue to function under their present mandates until the six-month transition period
mandated under this Act shal! have lapsed. The heads of the affected agencies shall
continue to serve until replaced

All rights and obligations of the affected agencies are hereby transferred to and
assumed by the Commission, and shall be acted upon in accordance with the rules and
regulations of the Commission on Audit and other pertinent laws, rules, and regulations.

SEC. 38, . Absorption or Separation from Service of Employees of the Subrogated
. Agencies. - The current employees of the Water Utilities Division of the NWRB, the
regulatory offices of MWSS and LWUA, the regulatory units of all special economic
zones, and all other government agencies and units whose powers and functions have
been transferred to the Commission shall enjoy security of tenure, and shall be
absorbed by the Department, in accordance with their stating pattern and the selection
process as prescribed under Republic Act No. 6656 or the Government Reorganization
Law. Employees opting to be separate 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
jin accordance with existing laws, and those who are qualified to retire shall be allowed
to retire and be entitled to all benefits under existing retirement laws.


SEC. 39. Water Trust Lund. There is hereby created a Water Trust Fund in the
Bureau of Treasury. -- All non-tax revenues, including raw water pricing, permit fees,
registration fees, supervision and regulation enforcement fees, filing fees, testing fees,
and other service Income from the use of water resources shall be remitted to the
Water Trust Fund. The trust fund shall be accounted separately from the government's
general revenues and shall be automatically appropriated to the Department. Proceeds
from the trust fund shall be utilized for weter 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
Jocal government unit o indigenous peoples (IP) community who own the specific areas
or land where the raw water was sourced.

CHAPTER Vill
FINAL PROVISIONS.

Sec. 40. Applicability of Ease of Doing Business Law, - The prescribed processing
time provided under Section 9.b of Republic Act No. 11032, otherwise known as the
Ease of Doing Business and Efficient Government Service Delivery. 1c of 2018, shall be
applicable to all agencies and IGUs covered under this Act particularly on accessing
government services

Sec, 41, Transitory Provisions, - Performance audit of all water-related apencies
and institution including LVUA 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 currents year’s appropriations of
the agencies and offices transferred and subsumed by the Department and the
Commission in the General Appropriations Act. Thereafter, such sums as may be
necessary tor the continued implementation of the Act shall be included in the annual
GAA.

SEC. 43. Implementing Rules and Regulations. - Within one hundred eighty (180)
days from the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in
consultation with concerned government agencies, the Presidential Legislative Liaison


Office shall promulgate rules and regulations for the effective Implementation of this
Act.

SEC, £4, Separability Clause. - If any reason, any portion or provision of this Act shall be
held unconstitutional or invalid, the remaining provisions not affected thereby shail
continue 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
waterworks and deep wells, and Section 3 (p) on the provision with respect to
regulation of waterworks and sanitation systems in privately owned subdivisions of
Republic Act 6234 entitled, Am.1d Creating The Metropolitan Waterworks And
Sewerage

‘System, And Dissolving The National Waterworks And Sewerage Authority, And For
Other Purposes, as amended,

2} Title lil on Local Water Utilities Administration Law of Presidential Decree No, 198
otherwise known as the Provincial Water Utilities 1d of 1973, as amended by Letter of
Instruction No. 700 ~ Providing Measures To Control And Regulate Increase In Water
Rates, Letter of Instruction No. 744 - Relative To Reliable Water Supply. 11 Reasonable
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 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 Nationa! 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
known as the Public Service Act pertaining to all cases involving the fixing of rates;



2) Section 154, Article V, Chapter |, Title One, Book Il of Republic Act No. 7160, as
amended, otherwise known as the "Local Government Code of 1997", and its
implementing rules and regulations on the
power of the local government units to fix the rates of water utilities owned, operated
and maintained by them within their jurisdiction |s hereby repealed or modified
accordingly.

3} Section 13 (b) on the regulation of enterprises within the Economic Zone under
Republic Act No. 7916 as amended, otherwise known as "The Special Economic Zone Act
of 1995",

4) Section 69 of Republic Act No. 9593 otherwise known as "The Tourism Act of
2008" and its implementing rules and regulations which mandate the Tourism
Infrastructure and Enterprise Zone Authority to grant franchises, supervise the
operation of public utilities, and register, monitor and regulate enterprises within
Tourism Enterprise Zones, are hereby repealed or modified accordingly;

5} Sections 7 and 8 on the adjudication of water pollution cases under Republic
Act No, 3931 entitled, In Act Creating The Nationa! Water And . Air Pollution Contro!
‘Commission, particularly with respect to Section 6 letters e, f, g, i, k Presidential Decree
984 entitled, Providing for the Revision of Republic 1ct No. 3931,

‘Commonly Known as the Pollution Control Land, and For Other Purposes,

6) Sections 4(1) and 7 of Republic Act No, 9275, otherwise known as the
“Philippine Clean Water Act of 2004"

7) Articles 3{d) and 79 of Presidential Decree No. 1067, otherwise known as The
Water Code of the Philippines;

8) Sections 9, 10, 11, 12 and 13, Chapter Il of Presidential Decree No. 856,
otherwise known as the "Code on Sanitation of the Philippines”; and

9) Section 3,2 (b) of Executive Order No. 149 Series of 1993 transferring the
Laguna Lake Development Authority from the Office of the President to the Department
of Environment and Natural Resources, All other laws, presidential decrees, executive
orders, presidential proclamations, rules and regulations, or parts thereto 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,

Approved,