FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B, Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No, 1062

EXPLANATORY NOTE

The government is tasked by the fundamental law of the land to be the
guardian and custodian of our country’s natural resources. This includes care
of our marine resources.

This legislative measure therefore institutes a mechanism for the
prevention, abatement, mitigation and control of oil pollution within the
territorial boundaries of the country,

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

RUFUS B. RIGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and

Representative Maximo B. Rodriguez, Jr.

House Bill No., 1062

AN ACT

CREATING THE OIL SPILL LIABILITY FUND

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

SECTION 1. Title. This Act shall be known as the "Oil Spill Liability
Fund Act of 2010".

SEC. 2. Statement of Policy. It is hereby declared the policy of the
State to prevent, abate, mitigate and control the pollution by oil and oily
mixture of the seas within the territorial jurisdiction of the Philippines.

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

(a)
(b)
(co)
()
()
)

(9)

(h)

"DENR" means the Department of Environment and Natural
Resources;

"Discharge in relation to oil or to an oily mixture means any
discharge or escape or spillage, however caused;

"Fund" means the Oil Spill Liability Fund;

"LGU" means Local Government Unit;

"MARINA" means Marine Industry Authority;

"Oil" means oil of any kind or in any form including but not
limited to crude oil, fuel oil, heavy diesel oil and lubricating
oil, oil refuse and sludge;

"Seas" means the waters surrounding, between and around
the islands comprising the Philippine Archipelago;

"vessel" means every description of watercraft, or other
artificial contrivance used, or capable of being used, as
means of transportation on water except;


@ Ships which are, or for the time being used as naval
auxiliaries; and
0 Ships of under 500 tons gross tonnage;

SEC. 4. Creation of the Oil Spill Liability Fund; Manner of Constitution.
There is hereby created an Oil Spill Liability Fund to be managed and
administered as a Trust Fund by the Department of Environment and Natural
Resources (DENR). The Fund shall be sourced from contribution of owners
and operators of tankers and barges hauling oil and/or petroleum products in
Philippine waterways and coast wise shipping routes. During its first year of
existence, the Fund shall be constituted by an impost of ten centavos per liter
for every delivery of transshipment of oil made by tanker barges and tanker
haulers. For the succeeding fiscal years, the amount of contribution shall be
jointly determined by the DENR, other concerned government agencies, and
representatives from the owner of tanker haulers, and ship hauling oil and/or
petroleum products. In determining the amount of contribution, the purpose for
which the Fund was set up shall always be closely considered.

SEC. 5. Purpose of the Fund. Amounts in the Oil Spill Liability Fund
shall be available for purposes of making expenditures for the payment of
clean-up and/or removal cost and natural resources damage assessments
and claims as determined by the Department of Environment and Natural
Resources (DENR) and administrative expenses related to such costs,
assessments and claims caused by or occasioned by any ship, tanker, vessel,
tanker barge or any other watercraft as understood in this Act which
accidentally or otherwise discharges oil or oily mixture on waters subject to
the jurisdiction of the Philippines; Provided however, that the assessment or
claim made by the DENR of the natural resource damage caused by an oil
spill shall be payable, without need of demand, to the Local Government Unit
(LGU) within whose territorial jurisdiction are situation waters affected by the
oil spill; Provided finally, that the Fund for containment, recovery and removal
or clean-up if soiled oil or oily mixture in waters within the territorial jurisdiction
of the Philippines.

SEC. 6. Limitation on Expenditures. The maximum amount which may
be paid from the Oil Spill Liability Fund with respect to —

i removal costs resulting from a single incident shall not
exceed P5,000,000.000 and

ii. natural resource damage assessment and claims in
connection with any single incident shall not exceed
P2,500,000.00.

SEC. 7. Liability of owners of Ships, Tanker Barges and Tanker
Haulers for Oil Spill Limited to Contribution in the Fund. The liability of owners
of tanker barges and tanker haulers or of ships or watercraft as understood in


this act for any oil spill or natural resource damage however caused or
‘occasioned shall be limited to their contribution to the Fund.

SEC. 8. Responsibility for Physical Removal and/or clean-up of Oil
Spills. Without prejudice to the right of the DENR to engage the services of a
private contractor, the Philippine Coast Guard, using available funds from the
Oil Spill Liability Fund shall be the agency primarily responsible for the
physical removal and/or clean-up operations of oil spills.

SEC. 9. Repealing Clause. All laws, rules and regulations, inconsistent
with this Act are hereby repealed or modified accordingly.

SEC. 10. Effectivity Clause. This Act shall take effect after fifteen (15)
from the date of its publication in at least two (2) newspapers of general
circulation

Approved.