Republic of the Philippines Y RECEIVED
HOUSE OF REPRESENTATIVES 2 oare, YUL 17
Quezon City ;

EIGHTEENTH CONGRESS.
First Regular Session

HOUSE BILL NO. 2279

Introduced by REPRESENTATIVE MARIA LOURDES ACOSTA-ALBA

EXPLANATORY NOTE

The proposed legislation seeks to adopt an Environmental Assessment
System which is composed of (a) Strategic Environmental Assessment or SEA for
policies, plans, and programs; and (b) Environmental Impact Assessment (EIA)
for specific projects.

This bill is aimed at addressing the gaps in Presidential Decree No. 1586
("Philippine Environmental Impact Statement System of 1978"), a broad law that
has been subject to very loose interpretation. This loose interpretation resulted
to encroachment on the powers of the legislative branch and confusion and
disagreements among project proponents, agencies, _nongovernment
organization, and stakeholders. This bill is intended to resolve these conflicts.

This bill also recognizes that environmental concerns, climate change, and
disaster risk reduction and management must be incorporated in all country’s
plans, policies and programs, from as early as conceptualization stage until
actual implementation, to ensure the country’s sustainable development. In view
of this, the bill proposes the adoption of Strategic Environmental Assessment
(SEA) for the country's long and short-term policies, plans, and programs.

This measure will retain the current EIS System, but it will streamline and
rationalize the system by addressing its limitations and weaknesses.
Environmental Impact Assessments (EIAs) will still be required for specific
projects, particularly those that are considered environmentally critical projects

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or projects which have potential to cause significant adverse impact on the
environment. Those considered as environmentally critical projects are heavy
industries, major manufacturing industries, major resource extractive
industries, major infrastructure projects, and other similar projects. To
encourage entrepreneurship and to simplify the EIA system, the bill proposes
that micro, small and medium-scale projects be governed by local governments.
Under the bill, LGUs shall be require to integrate environmental safeguards in
their local permitting system and/or complementary environmental assessment
policies.

To further streamline the EIA system, the bill also provides for
programmatic EIA for cluster of projects co-located in an area such as industrial
estates, export processing zones small scale mining, livestock, aquaculture and
mariculture projects or series of projects subdivided into several phases or
stages, or consisting of several components.

The Philippines is one of the fastest growing economies in Asia. Amid all
this, there is a need to strike a balance between and among economic growth,
sustainable development, environmental protection, and climate change
adaptation. This is consistent with the country's various international
commitments. most notably the United Nations Millennium Declaration, the
United Nations Framework Convention on Climate Change, and the Hyogo
Framework for Action, among others.

In view of the foregoing, the passage of this bill is earnestly sought.

First District, Bukidnon


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
HOUSE BILL NO. 2279

Introduced by REP. MARIA LOURDES ACOSTA-ALBA

AN ACT
ESTABLISHING A COMPREHENSIVE PHILIPPINE ENVIRONMENTAL
ASSESSMENT SYSTEM

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

PRELIMINARY TITLE

Chapter 1
Basic Policies

Section 1. Short Title. — This Act shall be known and referred to as the
"Philippine Environmental Assessment System Act”.

Section 2. Declaration of Policy. — The State shall adhere to the
principles of sustainable development. To this end, it shall ensure balanced
consideration of environmental protection, human health, and socio-economic
development through the assessment of significant environmental impacts of
policies, plans, programs, or projects, and the prescription of appropriate
protection and control measures. The implementation of this State policy shall
be guided by the following principles:

(a) A proactive approach to integrating environmental considerations into
strategic decision making, consistent with sustainable development
principles;

(b) A systems-oriented and integrated approach in the analysis and
solution to environmental concerns vis-a-vis development program;

() Conservation of biological diversity and sustainable use of its
components in all phases of development activity, especially in the
context of climate change and disaster risk reduction;


(d) Promotion of transparency and public participation in environmental
assessment system;

(e) Adoption of systematic decentralization of environmental assessment
and institutionalization of local environmental expertise;

(f) Strengthening environmental monitoring and evaluation mechanisms;
and

(g) Establishment of mechanisms to sustain the environmental
assessment system.

Section 3. Definition of Terms. — For purposes of this Act, the following
terms shall be defined as follows.

(a) "Agency" shall refer to the relevant government department , bureau
or office, at all levels, including government-owned and controlled
corporations, with mandate over the preparation, evaluation, approval,
implementation, or monitoring of a policy, plan, program or project.

(b) "Bureau' shall refer to the Environmental Management Bureau;

(c) "Co-located Projects" shall refer to projects, or series of projects or a
project subdivided into several phases or stages, and located in a
contiguous area;

(d) "Cumulative Effect" shall refer to the effects on the environment which
result from the incremental effect of an activity or a set of activities in
combination with the effects of other activities in the area, past and
present, regardless of the person or agency that undertakes such other
activities.

(ce) "Department" shall refer to the Department of Environment and
Natural Resources;

(t) "Environmental Assessment shall refer to a process of systematic
analysis, evaluation and management of the potential environmental
effects of a policy, plan, program or project before a decision on the
said policy, plan, program or project is made. The term includes both
Strategic Environmental Assessment (SEA) and Environmental Impact
Assessment (EIA);

(g) "Environmental Impact Assessment" shall refer to the process of
predicting and evaluating the likely impacts of a project (including
cumulative impacts) on the environment during construction,
commissioning, operation, and abandonment. It also includes
designing appropriate preventive, mitigating, and enhancement
measures addressing these consequences to protect the environment;


(h) "Environmental Impact Assessment Report" shall refer to the
document of studies on the environmental impacts of a project,
including the discussion on direct or indirect consequences upon
ecological and environmental integrity. The EIA Report may vary from
project to project but shall contain in every case all relevant
information and details about the proposed projects, including the
appropriate mitigating and enhancement measures to address the
identified environmental impacts.

“Environmental Impact’ shall refer to any change that the policy, plan,

program or project may cause in the environment, including any effect

of any such change on health and socio-economic conditions.

(j) "Environmental Management Plan" shall refer to the details of the
preventive, mitigating, and enhancement measures of a proposed
project, including monitoring and evaluation thereof, and shall form
part of the EIA Report.

(k) "Environmentally Critical Project” shall refer to a project or activity
that has the potential for significant adverse environmental impact, as
determined by the Bureau in accordance with the provisions of this
Act.

(1) "Policy, Plan or Program" shall refer to new or modified framework or
course of action, strategies, guidelines or measures proposed by a
concerned agency or local government unit (LGIJ) to define or
implement its mandate under relevant laws. The term includes those
financed and/or co-financed by international organizations and
proposed to the head of an agency or LGU.

(m)"Proponent” shall refer to any person seeking to implement a relevant
policy, plan, program or project. This includes government agencies,
government-owned and controlled corporations, LGUs, and private
entities.

(n) "Strategic Environmental Assessment " shall refer to the
management/planning tool for a systematic evaluation of the
environmental consequences of a proposed policy, plan or program in
order to ensure that they are fully considered and appropriately
addressed at the earliest stage of decision-making

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TITLEI
ENVIRONMENTAL ASSESSMENT SYSTEM

Chapter 1
General Provisions

Section 4. Environmental Assessment System. — The Environmental
Assessment System (EAS) is hereby established which shall cover Strategic
Environmental Assessment purposes of identifying, analyzing, evaluating, and
managing the direct and indirect impacts of a policy, plan, program, or project
on the environment, health and socio-economic issues, and ensuring that
these impacts are addressed by appropriate environmental protection and
control measures. It shall help identify the most practicable alternatives for
achieving positive outcomes and minimizing potentially adverse effects of
policies, plans, programs, and projects.

Section 5. Coverage of the Environmental Assessment System (EAS).
—any policy, plan, program or project which has the potential for significant
adverse impact on the environment shall be covered by the EAS.

Chapter 2
Strategic Environmental Assessment

Section 6. Applicability of the SEA. — The SEA shall be required for a
proposed policy, plan, or program when all of the following conditions exist:

(a) The proposal relates, but not limited, to agriculture, forestry,
fisheries, energy, health, resource extraction, infrastructure,
transport, waste management, water management, tourism, coastal
zone management, national, regional provincial and municipal/city
development planning or land use; and

(b) Implement of the proposal may result in significant adverse
environmental impact, including health and socio-economic impact.

Provided, that, SEA shall not be required for policy, plan, or program for
proposals involving national security, as declared by the President of the
Philippines. Provided, further, that, within five (5) years from the date of
effectivity of this Act, SEA shall apply to the following:


(a) National development plans, policies, and programs, such as the
Philippine Development Plan;

(b) Sectoral plans, policies, and programs, such as those relating to
agriculture livestock, environment and natural resources, energy,
infrastructure and industries;

(©) Subnational development plans and programs, such as regional,
provincial and local development and land use plans, including those
formulated by the Mindanao Development Authority, Palawan
Council for Sustainable
Development, and other similar bodies;

(d) Policies involving biosafety, genetically modified organism (GMO), and
bioprospecting; and

(©) Indigenous peoples’ development plans.

Section 7. Undertaking SEA. — the proponent shall conduct the SEA as
an integral part of the formulation of the policy, plan, or program for the
purpose of identifying the most practicable alternatives for achieving positive
outcomes and minimizing potentially adverse effects of policy, plan, or
programs. SEA may be carried out corresponding to the stages of policy, plan
or program formulation and may involve sequential assessments of various
components of the policy, plan, or program.

The SEA to be undertaken shall specify, but not be limited to, the

following information:

(a) Description of the policy, program, or plan in summary, and process
of organization to implement SEA;

(b) Scope of the SEA study and the main environmental issues related to
the policy, program, or plan, specifying environmental impacts and
cumulative effects to be considered, , including past environmental
issues and relevant trends in the state of the environment;

(c) Assessment of the policy, program, or plan vis-a-vis environmental and
sustainable development considerations;

(d) Where applicable. Climate projections prepared by the Philippine
Atmospheric, Geophysical, and Astronomical Services Administration
(PAGASA) shall be used in the conduct of relevant modeling, studies,
and assessment, as may be required;

(©) Assessment of the policy, program, or plan to disaster risk
vulnerability, and its capacity to adapt to climate change; and

(f) Recommended options to prevent or mitigate any significant adverse
environmental impacts resulting from the implementation of the

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policy, plan, or program, including the focus of any subsequent EIAs,
and measures for monitoring environmental aspects of its
implementation.

Section 8. Inter-agency SEA Council. — There is hereby created an
Inter-agency SEA Council (IASC) composed of the following:

(a) Secretary of the Department of Environmental and Natural Resources,
Chair;

(b) Secretary of the Department of Science and Technology, Vice Chair;

(©) Secretary of Socioeconomic Planning, Member;

(d) Secretary of Department of Interior and Local Government, Member;

(e) Secretary of the Department of Agriculture, Member;

() Secretary of the Department of Public Works and Highways, Member;

(g) Secretary of the Department of Energy, Member;

(h) Secretary of the Department of Transportation and Communications,
Member;

(i) Secretary of the Department of Health, Member,

() Secretary of the Department of Tourism, Member;

(k) Chairman of the Housing and Land Use Regulatory Board, Member;
()) Chairman of the National Commission on Indigenous Peoples, Member;
(m)One representative from the Local Government Unit, Member;

(n) One representative from the environmental NGOs, Member; and

(0) One representative from the business sector, Member.

Representatives of the environmental NGOs and business sector shall be
appointed by the President from a list of nominees submitted by their
respective sectors, they shall serve for a term of six (6) years without
reappointment, unless their representation is withdrawn and/or replaced by
the concerned sector, in which case, the new appointee shall serve only for the
unexpired term of the predecessor.

Only the ex-officio members of the IASC shall appoint a qualified
permanent representative who shall hold a rank of no less than an
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Section 9. Secretariat. — The Department of Environment and Natural
Resources shall act as secretariat of the IASC, and shall be the official
repository of all documents and records thereof.

Section 10. Powers and Functions of the IASC. — The IASC shall have
the following powers and functions:

(a) Ensure the mainstreaming of SEA into policies, plans and programs;

(b) Formulate implementing rules and regulations on SEA pursuant to this
Act, including the provision for the progressive implementation of SEA
in accordance with Section 6 of this Act;

(©) Exercise policy coordination to ensure the attainment of the goals and
objectives set in this Act;

(4) Recommend legislation, policies, strategies, programs on and
appropriating for SEA and other related activities;

(¢) Create an enabling environment that shall promote broader multi-
stakeholder participation;

() Formulate and update guidelines for determining and facilitating the
provision of technical assistance for their implementation and
monitoring,

(g) Ensure compliance of all concerned agencies with this Act;

(h) Facilitate capacity building for SEA implementation and monitoring;
and

(i) Oversee the dissemination of information on SEA.

Chapter 3
Environmental Impact Assessment (EIA) for Specific
Projects

Section 11. Applicability of EIA. — Environmentally critical projects, as
determined by the Bureau in accordance with this Act, shall undertake an EIA
for specific projects. These critical projects are presumed to have the potential
for significant adverse impact on the environment. For purposes of
determining critical projects, the Bureau shall consider the nature of the
project and its potential to cause significant adverse environmental impacts.
Critical projects shall include, but not limited to, heavy industries, major
manufacturing industries, major resource-extractive industries, major
infrastructure projects, and other similar projects.


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Micro-, small-, and medium-scale projects and other similar activities
shall be governed by the concerned LGUs, which shall integrate environmental
safeguards in their local permitting system and/or complementary
environmental assessment policies.

Environmentally critical projects, the impact of which is specifically
addressed in a SEA, may be required by the Bureau to undertake an
appropriate environmental assessment study.

Existing projects, which are deemed critical under his Act but operating
without an Environmental Compliance Certificate (ECC) required under Sec.
4 of PD 1586, shall be given three (3) tears from the date of the effectivity of
this Act within which to comply with the provisions of this law.

Section 12. Review of EIA. — The EIA Report shall be reviewed by a
multi-disciplinary team of independent experts convened by the Bureau for
that purpose. The team shall make a report of its findings and
recommendation on the issuance or non-issuance of the Certificate of
Proponent's Environmental Commitment (CPEC). The cost of such review shall
be financed by the proponent through a fund manager, whether government
or private.

Section 13. Decision on the EIA. — After a review of the EIA Report and the
recommendations of the EIA Review Team, the Bureau may issue a Certificate
of Proponents Environmental Commitment (CPEC) certifying that the proposed
project has integrated environmental considerations into its overall project
design and management, that the assessment is technically sound «at the
feasibility study stage, and that the proposed preventive, mitigating, and
enhancement measures are appropriate. The CPEC shall also certify that the
proponent has demonstrated its commitment to implement the approved
Environmental Management Plan (EMP) for its proposed project, as planned,
and the corresponding Monitoring and Evaluation. The CPEC shall be limited
to the results of the assessment of the environmental impacts of the proposed
project. It shall not, in any manner, exempt the proponent from securing other
government permits and clearance required by other laws, nor shall it be
construed as resolving issues within the mandate of other government
agencies, such as those relating to land ownership and possession rights.


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All concerned national government agencies and local government units
shall consider the CPEC and relevant EIA documents in their decision-making
process.

Section 14. Environmental Safeguards for non-Environmentally
Critical Projects. - Proponents of projects that are not covered pursuant to
the preceding sections may be required by the Bureau to implement
environmental safeguards. The Bureau shall establish an evaluation system
therefor.

Section 15. EIA for Co-located Projects. — The Department shall
require programmatic EIA for projects or series of projects subdivided into
several phases or stages, or consisting of several components, or a cluster of
projects co-located in an area, such as, but not limited to, industrial estates,
export processing zones, small-scale mining, livestock, aquaculture, and
mariculture projects.

‘The EIA requirements and conditions for co-located projects under the
EAS shall be guided by an assessment of the cumulative impacts and carrying
capacity as may be determined from ecological profiles of the area.

The CPEC under this provision shall be issued by the Bureau.

Section 16. Financial Guarantee Mechanism. — As part of the CPEC
requirements, the Bureau may require project proponents to put up a
financial guarantee mechanism to respond to the need for clean-up or
rehabilitation of areas that nay be damaged, whether directly or indirectly, or
through occurrences, anthropogenic or otherwise, by a project, during and
after its operation.

Provisions for financial liability shall ensure just and timely
compensation for any adverse effects which project implementation may
directly or indirectly cause on the environment or the community.

The instrument acceptable for compliance with this provision are trust
funds, environmental insurance, cash funds, financial test mechanism, self-
insurance and other guarantee instruments. The choice of guarantee
mechanisms, or of combinations thereof, shall depend primarily on: a) the
probability and magnitude of the risks involved, as culled from new and
existing information and determined through environmental and health risk

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assessment, and b) the financial capability of the proponent; Provided, that
such proponent shall show proof of compliance with the requirement for
contingent liability by furnishing the Department with evidence of availment
of such mechanism.

Section 17. Accreditation of Preparers and Reviewers. — The Bureau
shall establish a system of accreditation for preparers and reviewers of EIA,
which shall take into consideration their competence, expertise, track record,
integrity and independence. The Bureau may delegate the accreditation
process to a third party, government or private.

No employee of the Department or Bureau shall, in any manner
whatsoever, directly or indirectly, participate in the preparation of the EIA.

Section 18. Non-Liability to the Authenticity of EIA Documents. —
The documents that may be required by the Bureau for the conduct of an EIA
shall be used solely to determine the scope and potential impacts of proposed
projects on the environment. The Bureau shall not be liable to any allegations
or conclusions of fraud, falsification, or misrepresentation attending the
submitted documents. Any issues or disputes that may arise from such
documents shall be resolved in appropriate forums, courts, or tribunals.

Section 19. Consultation and Public Participation in the EIA. — All
proponents of environmentally critical projects shall, at the earliest stage of
the EIA process, inform and consult the concerned local government units and
communities that will be affected by the proposed project to ensure that
environmentally relevant concerns are taken into consideration in the EIA stud
and in the formulation of the EMP.

It shall be done through public hearing, whenever appropriate, which is
publicly announced and where all valid comments are heard and considered.

Section 20. Multi-partite Monitoring Team and Environmental
Monitoring Fund. - Multi-partite monitoring teams (MMTs) shall be organized
to encourage public participation, promote greater stakeholder vigilance, and
provide appropriate check and balance mechanisms in the monitoring of project
implementation.

The MMTs shall be composed of representatives of the relevant national
agencies local government units. Non-governmental organizations, and other
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stakeholders in the affected communities. The government representatives
shall be selected by the Bureau based on the relevance of their mandates,
while those from non-governmental organizations and affected communities
shall be selected from among themselves in a process facilitated by the
concerned LGU and certified by the Bureau.

MMTs can be project-based or clustered by province/municipality or by
sector. Such clustering shall be accomplished upon the recommendation of
any of the members of the MMTs comprising the cluster and shall be
convened with the assistance of the bureau and the concerned LGU. Cluster
members shall agree on a manual of operations, a fund manager, and scheme
for shared monitoring.

The proponent shall establish an Environmental Monitoring Fund (EMF)
to support the activities of the MMT. The Bureau shall promulgate the rules
for the administration and management of the EMF: Provided, that, in no case
shall such fund be used other than for the purpose for which it was
established.
TITLE I
MISCELLANEOUS PROVISIONS

Chapter 1
Fines and Penalties

Section 21. Sanctions for Violations. — Any environmentally critical
project which shall operate without the required CPEC shall face closure,
suspension of development or construction, or cessation of operations until
such time that proper environmental safeguards are put in place and the
necessary CPEC has been issued; Provided, that, the project proponent shall
be fined an amount not less than One Hundred Fifty Thousand Pesos (Php
100,000.00) but not more than Twenty Million Pesos (Php20,000,000.00)
depending on the magnitude of the environmental risks and upon the final
decision of the proponent firm shall be held criminally liable and shall be
imprisoned for a period not less than two (2) years but not more than ten (10)
years, at the discretion of the Court.

Any project proponent found in violation of the EMP shall be imposed a
fine in the amount of not less than Fifty Thousand Pesos (Php50,000.00) for
every violation, depending upon the type and impact of the violation, but not
more than Ten Million Pesos (Php10,000,000.00) per violation, plus cost of

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damages, at the discretion of the Bureau. Provided, that the Bureau may order
the closure, suspension of development or construction, or cessations of
operations if the violation of the EMP is continued.

Chapter 2
Institutional Arrangement

Section 22. Agencies Responsible in the Implementation of the Act.
— Unless otherwise provided by this Act, the Department shall serve as the
primary agency responsible for the implementation of the EAS. It may secure
the assistance of environmental units of other government agencies, academic
and research institutions, and environment professionals in undertaking its
responsibilities under this Act.

For this purpose, an environmental unit shall be established and/or
strengthened in each concerned government agency. Furthermore, it shall be
the responsibility of all concerned government agencies to share information
or data necessary to effectively evaluate reports required pursuant to this Act.

Concerned government agencies shall establish appropriate permanent
organizational structures systems to address the requirements of the EAS.

Section 23. Establishment of an Environmental Assessment System
Division. — In order to effectively implement the provisions of this Act, an
Environmental Assessment System (EAS) Division is hereby established
within the Bureau.

Section 24. Decentralization and Devolution of Functions. — The
Department shall, within one (1) year from the effectivity of this Act, develop
guidelines for the decentralization of functions of the Bureau under this Act
to the Regional Offices.

The Department, in coordination with the Department of Interior and
Local Government (DILG), shall, within two (2) years from the effectivity of this
Act, provide technical resources and leadership to assist LGIJs and entities
in acquiring capacity and capacity and expertise for rational and effective
devolution of functions under the EAS. The devolution of functions shall be
made after the concerned LGUs and entitles have been assessed to be
technically capable of such functions.

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Section 25. Local Capacity-Building in Environmental Assessment
System. — the Department, through the Bureau, shall, in coordination with
the DILG, lead the development and implementation of a national capacity
building program in environmental assessment. To ensure the rational
devolution of functions mandated in Section 24 hereof, the program shall be
operational within two (2) years from the effectivity of this Act.

‘The national program for capacity building shall identify target entities as
well as functions for devolution and prepare the target entities for the local
implementation of the EAS or its components in accordance with the objectives
of this Act.

Section 26. Knowledge Management System. — The Bureau shall
establish a database management system for purposes of gathering, keeping,
disseminating and updating all information relative to the implementation of
the EAS. As part of the database management system, the Bureau shall create
a public registry of all CPECs issued.

Section 27. Public Disclosure - All documents generated as part of the
Each shall be accessible to the public upon request made during office hours,
except those information deemed protected under Republic Act No. 8293,
otherwise known as the Intellectual Property Code of the Philippines: Provided
that, the executive summary of the SEA, EIA, EMP, and CPEC shall likewise
be disclosed by the Bureau and proponents to the public through the internet.

Chapter 3
Actions

Section 28. Administrative Action. — Without prejudice to the right of
any affected person to file an administrative action, the Department shall, on
its own instance or upon verified complaint by any person, institute
administrative proceedings against any person who violates the provisions of
this Act and the orders, rules and regulations promulgated pursuant thereto.

Section 29. Citizen Suits. — For purposes of enforcing the provisions
of this Act or its implementing rules and regulations, any citizen may file an
appropriate civil or criminal action in the proper courts against:

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(a) Any person who violates or fails to comply with the provisions of this
Act, its implementing rules and regulations, or orders issued pursuant
thereto; or

(b) The Department or other implementing agencies with respect to orders,
rules and regulations issued inconsistent with this Act; and

(c) Any public officer who willfully or grossly neglects the performance of
an act specifically enjoined as a duty by this Act or its implementing
rules and regulations; or abuses his authority in the performance of
his duty; or in any manner, improperly performs his duties under this
Act or its implementing rules and regulations.

Provided, however, that, no citizen suit can be filed until after a thirty
(30)-day notice has been taken thereon.

The court shall exempt such action from the payment of filing fees, and
shall likewise, upon prima facie showing of the non-enforcement or violation
complained of, exempt the plaintiff from the filing of an injunction bond for
the issuance of a preliminary injunction.

Within thirty (30) days, the court shall make a determination if the
complaint herein is malicious and/or baseless, and shall accordingly dismiss
the action and award attorney's fees and damages.

Section 30. Independence of Action. The filing of an administrative
suit against such person/entity does not preclude the right of any other
person to file any criminal or civil action. Such civil action shall proceed
independently.

Section 31. Suits and Strategic Legal Actions Against Public
Participation and the Enforcement of this Act. — Where a suit is brought
against a person who filed an action as provided in Section 28 of this Act, or
against any person, institution or government agency that implements this
Act, it shall be the duty of the investigating prosecutor or the court, as the
case may be, to immediately make a determination not exceeding thirty (30)
days whether said legal action has been filed to harass, vex, exert undue
pressure or stifle such legal recourses of the person complaining of or
enforcing the provisions of this Act. Upon determination thereof, evidence
warranting the same, the court shall dismiss the case and award attorney's
fees and double damages. This provision shall also apply and benefit public

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officers who are sued for acts committed in their official capacity, there being
no grave abuse of authority, and done in the course of enforcing this Act.

Chapter 4
Establishing of an EAS Management Fund

Section 32. Environmental Revolving Fund. — The Environmental
Revolving Fund (ERF) created under Presidential Decree No. 1586 shall
remain to be operational. It shall be used primarily for defraying
administrative expenses, equipment purchase or leases and other program
costs directly incurred in the review, assessment and monitoring of the EAS.
The ERF may be sourced from donations; endowments and grants in the form
of contributions. Such endowments shall be exempt from income or gift taxes
and all other taxes, charges or fees imposed by the government or any political
subdivision, instrumentality or agency. It shall also include funds to be
provided by proponents for the review of specific projects. All income likewise
generated from fees, fines and penalties directly related to the implementation
of the EAS shall accrue to the ERF and may be utilized directly by the
Department for the above purposes.

All fund transactions shall, however, be subject to the usual auditing
procedures in accordance with existing laws.

Section 33. Appropriations. - An amount of One hundred million pesos
(P100,000,000.00) shall be appropriated for the initial implementation of this
Act.

Section 34. Transitory Provision. — Non-Highly Urbanized Cities, and
Third, Fourth, Fifth, and Sixth Class Municipalities shall be given a five (5)-
year grace period within which to comply with the provisions of this Act on
SEA

Section 35. Implementing Rules and Regulations. — Unless
otherwise provided in this Act, the Department, in coordination with other
concerned agencies, shall promulgate the implementing rules and regulations
of this Act, within one (1) year after its effectivity.

‘The Department and the IASCS, in coordination with other concerned
government agencies, shall undertake such review and updating of the
implementing guidelines of the EAS every two (2) years thereafter.

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Chapter 5
Final Provisions

Section 36. Separability Clause. - Should any provision herein be
subsequently declared unconstitutional, the same shall not affect the validity
or legality of the other provisions of this Act.

Section 37. Repealing Clause. — Presidential Decree No. 1586, except
Section 10 thereof, Presidential Proclamation No. 2146, Executive Order No.
803, and Office of the President Administrative Order No. 42, series of 2002
are hereby repealed. All laws, orders, rules and regulations or any part thereof
which are inconsistent with the provisions of this Act are hereby amended or
modified accordingly.

Section 38. Date of Effectivity. — This Act shall take effect fifteen (15)
days after its publication in the official Gazette or in two (2) newspaper of
general circulation.

Approved,

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