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

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL no.1878

INTRODUCED BY REP. CHING BERNOS.

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AN ACT
PROVIDING FOR THE SUSTAINABLE MANAGEMENT OF FORESTS
AND FOREST LANDS:

Forests are one of the most fundamental ecological units of the planet. In
the Philippines, it is the lifeblood of our terrestrial ecosystem. It provides oxygen,
shelter for biodiversity, natural botanical, zoological, and other resources, and it is
one of humanity’s most important layers of protection from the impacts of climate
change. Forests currently cover roughly 30 percent of the world’s land area but
they are disappearing at a perilous rate. According to the United Nations (UN), we
have lost 420 million hectares of our forest cover in the past three decades. The
destruction and collapse of our forests is one of the major crises that all nations
must address - including our own. In 2010, the Philippines had 13.2 million hecta-
res of natural forest, covering 62% of the country’s land area. In 2021, it lost
37,700 hectares of natural forest. According to studies by environmental groups
and by our own government, the Philippines is one of the most severely deforested
countries in the tropics. In total, we lose about 123,000 hectares of forest cover
every year. At this rate, there would be no forests left in the country in less than 15

years.

an imperative task that our government must undertake if we wish to protect and
preserve our vast forest ecosystem. Sustainable forest management ensures that
our forests are maintained and managed in a socially just, ecologically sound, and
economically viable manner. The UN defines sustainable forest management as the
stewardship of forests in a way that maintains biodiversity, productivity, regenera
tion capacity, vitality, and their potential to meet relevant ecological, economic, and
social functions without damage to other ecosystems. This further entails that so-
ciety’s demands from our forest resources do not compromise ecological balance
and climate resiliency.

= reason, the institutionalization of sustainable forest management is



sustainable forest management requires our government to institutionali-
ze mechanisms and processes that respond to forest management concerns in
terms of development, regulation, protection, and the mitigation of the impacts of
industrial demand. It must also be included in all government planning, policy ma-
king, and executive actions aimed at addressing climate change as well as provi-
ding the appropriate funding therefor. The Forest Management Bureau must also
be reconstituted and strengthened, not only as managers or administrators of fo-
rest resources, but also as stewards and guardians of the forest ecosystem. Finally,
sustainable forest management must also be responsive to the rights and needs of
marginalized groups such as farmers, indigenous peoples, informal settlers, and
those burdened by poverty.

\eforestation is not a problem to be faced by future generations. This is a
problem that we face right now. But through the swift and decisive action of the
government, with the help of civil society groups and the public at large, we will
still be able to save our forests and our entire nation’s ecological balance.

In light of this duty, the passage of this bill is urgently sought.

CHING B. BERNOS
e District, Abra



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

NINETEENTH CONGRESS
First Regular Session

1878

HOUSE BILL NO. __”

INTRODUCED BY REP. CHING BERNOS

AN ACT
PROVIDING FOR THE SUSTAINABLE MANAGEMENT OF FORESTS
AND FOREST LANDS

Be it enacted by the Senate and House of Representatives of the Philippines in Con-
gress assembled:

ARTICLE I
GENERAL PROVISIONS

section 1. Short Title. This Act shall be known as the “Sustainable Forest
Management Act.”

Sec. 2. Declaration of Policy. In consonance with the policy of the State to
promote social justice and general welfare in all phases of national
development, to protect and advance the right of the Filipino people to a balanced
and healthful ecology in accord with the rhythm and harmony of nature, and to
conserve and develop the patrimony of the nation, the State hereby adopts the
following policies for the sustainable management and conservation of forest lands
and forest resources found therein:

a. The specific limits of forest lands, after these have been fixed and
demarcated, shall not be altered, except through and Act of Congress;

b. The sustainable use and conservation of forest lands and forest
resources found therein shall bear social, cultural, ecological, biological,
andeconomic functions to promote the common good of
present and _ future generations;



c. The State shall prioritize the protection of the ecosystem, as well as
the rehabilitation of degraded forest ecosystems through reforestation
and afforestation to mitigate climate change, improve and conserve
bit ‘ty, enhance ecosystem functions and services, and provide
long-term economic benefits;

d.| Forest lands shall be partitioned and planned into

fofest management units (FMUs) based on natural topographic

and hydrologic boundaries and shall consider the watershed continuum
roach which adopts the holistic inter-relationship between the upstream
downstream areas;

e. The State recognizes the inherent roles and responsibilities of local
communities and indigenous peoples in the protection and ecological
treatment of the environment;

f. |The allocation, management, protection, conservation, and development of
forest lands and forest resources shall be done in an integrated, inclusive,
developmental, viable, and sustainable manner.
Sec. 3. Objectives. The State shall pursue a policy of balancing the
sustainable use of forest lands and forest resources and sustainable development. It
shall be the objective of the State to:

a. Provide equitable access to forest lands and forest resources;

b. Streamline the use of forest lands and forest resources by promoting
the use of sustainable forest management strategies among concerned
FMUs and stakeholders;

c. Deregulate the harvesting, sale, marketing, and processing of
products from forest plantations and forest farms in forest lands;

d. Promote Sustainable livelihood and enterprises among marginalized
community tenureholders including indigenous cultural communities

and indigenous peoples (ICC/IPs) who depend on and reside in forest lands;

e. Strengthen institutional mechanisms to respond to forest
management concerns namely: the development of the forest industry,
constant law enforcement, and management of watersheds;

f. Create the Sustainable Forest Development Fund (SFDF) as a support
mechanism for funding requirements of forest management initiatives;



g. Strengthen the role of the Forest Management Bureau (FMB) to be
more responsive and pro-active consistent with the objectives of this Act;

hh. Undertake a multi-stakeholder study, to be led by the FMB, as a
prerequisite to the partitioning of forest lands into FMUS. The study
sl determine the actual forest cover of the country, and shall ensure
that the required forest cover is achieved, sustained, and protected.

Sec. 4. Scope and Coverage. The provisions of this Act shall apply to all forest
lands and alll forest resources in lands over which the Philippines has sovereignty
and jurisdiction: Provided, That all forest lands and forest resources found in
protected areas established under the National Integrated Protected Areas
System (NIPAS) shall be sustainably managed and developed consistent with the
provision) of Republic Act No.7586, or the “National Integrated Protected Areas
‘System Act of 1992”, as amended by Republic Act No. 11038 or the “Expanded
National Integrated Protected Areas Systems Act of 2018”: Provided, further,
That all wildlife resources and critical habitats found in forest lands, including
alienable and disposable lands, shall be governed by Republic Act No. 9147 or
the “Wildlife Resources Conservation and Protection Act”: Provided,
furthermore, That the rights of ICC/IPs to their ancestral forest lands, as
provided in Republic Act No. 8371 or the “Indigenous Peoples’ Rights Act of
1997” oa be respected: Provided finally, That all forest lands under the
management or administration of local government units (LGUs) and other
government agencies or instrumentalities shall be managed in accordance with
their duly legislated charters and the principles and provisions of this Act.

Sec. 5. Sustainable Forest Management Strategies. Consistent with the
objectives of this Act, the following strategies shall be employed:

a. Inclusive and responsive governance of forests and forest lands
through integrated landscape planning and development in watersheds,
and the adoption of community-based approaches by local stakeholders;

b. Promotion and direction for complementary and combined investments of
the public and private sectors for the protection of natural forests, holistic
restoration in watershed landscapes, reforestation and regeneration in
degraded protection forest lands, forest plantations and smallholder forest
farms using combinations of high value indigenous and suitable species;

c lopment of localized and watershed specific framework for the
sustainable use and regulation of ecosystem goods and services that will
enhance biodiversity conservation, establish systems for payment of
environmental services, improve resilience to the impact of climate


change, and increase the supply of timber, non-timber, biomass, wildlife,
food, medicines among others;
|

d. Promotion of landscape-linked and holistic forestry research, education,
and extension on forest ecosystem assets, services accounting and
valuation;

e. Strengthening the professionalization of the forestry service consistent
with Republic Act No. 10690 or “The Forestry Profession Act”.

Sec. 6. Definition of Terms. As used in this Act:

@. Ancestral forest lands refer to lands and domains defined as such
under Republic Act No. 8371, or “The Indigenous Peoples Rights Act of

spr
b. Biodiversity refers to the variability among living organisms from all

sources, including terrestrial, marine, and other aquatic ecosystems in
the ecological complexes of which they are part of;

¢. Certification refers to a verification process conducted by a third
patty to determine whether or not a forest land is managed based on a
defined set of standards;

d. |Climate change refers to a change in climate that can be identifies by
changes in the mean or variability of its properties and that persists for an
extended period whether due to natural variability or as a result of human
activity;

e. Climate change mitigation refers to human intervention to reduce
ant genic emissions of greenhouse gases including ozone depleting
substances and their substitutes such as increasing the capacity of
carbon sinks;

f. Ecosystem refers to a community of living organisms interacting with
each other and with their environment;

g. Ecosystem goods and services refer to the multitude of material and
nonmaterial provisions and benefits from healthy ecosystems necessary
for human sustenance, well-being, and survival including support processes,
ert and environment regulating services, and cultural resource
preservation services;

h. Ecotourism refers to a form of sustainable tourism within a natural or
cultural heritage area where community participation, protection



id management of natural resources, culture, and indigenous knowledge
and practices, environmental education and ethics, as well as economic
benefits are pursued for the enrichment of host community and
satisfaction of visitors;

i Forest refers to an ecosystem or an assemblage of ecosystems
dominated by trees and other natural vegetation, populated by plants
and animal interacting with one another and their natural environment. It
refers toa land with an area of more than half (0.5) hectare and with tree
crown cover or equivalent stocking level of more than ten percent (10%);

j. \Forest land refers to land of the public domain classified as needed
for forest purposes, including both production and protection. It
ingludes all forest reserves of the piiblic domain;

k. |Forest management unit (FMU) refers to a clearly defined forest area
assigned for management based on a set of objectives and a long-term
watershed-based management plan;

. Forest-based industries refer to industries that are dependent on raw
materials or products derived from forests such as wood, rattan,

boo, vines, latex, resins, saps, essences, fruits, flowers, or wild flora
and fauna;

m. Forest Protection Officers refer to officials or employees of the
Department of Environment and Natural Resources, hereinafter referred to
as DENR, who are granted the authority to enforce all forestry and
environmental laws and conduct arrests, seizures, and apprehensions in
relation to environmental law enforcement;

n. Forest resources refer to all products and resources in forest lands or

in other lands devoted for forest purposes including biomass such as

plants and animals, their by-products and derivatives, and non-biomass

such as soil, water, scenery;

0. Forest restoration refers to a management strategy applied in degraded

primary forests to enhance and accelerate natural processes of a forest
system;

p. Forest stand refers to a contiguous community of trees sufficiently
uniform in structure, age, size, class, distribution, spatial arrangement, site
quality, condition or location to distinguish it from adjacent
communities;



q.| Indigenous cultural communities / Indigenous peoples refer to a group of
people sharing common bonds of language, customs, traditions, and
other distinctive cultural traits, and who have, since time immemorial
occupied, possessed and utilized a territory;

r. Indigenous species refer to species of genotypes that have evolved in the
same area, region or biotope and are adapted to the specific
predominant ecological conditions at the time of establishment;

s. | Multiple-use of land refers to the harmonized sustainable use of
land, soil, water, wildlife, recreation value, grass and timber of forest
lands;

t. Natural forest refers to a forest composed of naturally growing
indigenous trees, not planted by humans, whose structure,
composition, and dynamics have been largely the result of natural
suécession process;

u. \Non -timber forest products refer to all biological materials and
derivatives other than timber including fruits, nuts and vegetables, fish
and game, medicinal plants, resins, essences, rays and fibers of tree barks,
and other palms and grasses;

v. Plantation refers to forest stands established by planting or seeding in
the process of afforestation or reforestation. A stand is composed of
either introduced species, or of any indigenous species, which are of
even age and regular spacing;

w. Primary forests or old-growth forests refer to forests which have never
been subjected to human disturbance or have been very minimally

ed by hunting, gathering, and tree cutting that their natural
structure, function, and dynamics have not gone any change that exceed
the elastic capacity of the is ecosystem;

x. Processing plant refers to any establishment or infrastructure that
houses any mechanical set-up, device, machine, or combination of
machines used for the conversion of logs and other forest raw materials
into lumber, fiberboard, pulp, paper, or other finished wood products;

y. Public forest lands refer to all lands of the public domain that have not
been declared National Parks under Section 5 of Republic Act No. 7586,
or the “National Integrated Protected Areas System Act of 1992”, as
amended by Republic Act No. 11038 or the “Expanded National Integrated
Protected Areas System Act of 2018"; mineral lands pursuant to Republic
‘Act No. 7942 otherwise known as the “Philippine Mining Act of 1995”; and



those lands not classified as agricultural lands based on the maps
developed by the National Mapping and so Resource Information Authority;

z.| Reforestation refers to the re-establishment of forest formations that have
been reduced to less than 10% canopy cover due to human activities or
natural perturbations;

aa. Rehabilitation refers to reforestation or afforestation activities including
mechanical measures such as contouring and terracing;

Secondary forest refers to a former forest that was over-logged and which
is characterized by residuals such as small trees, branches, tops, or other
unmerchantable wood remaining after the clearing, thinning or final felling of
forest stands;

cc, Sustainable forest management refers to the watershed-based
management of forest land and resources to achieve clearly specified
objectives as regards the production of continuous flow of desired forest

jucts and ecosystem services without undue reduction of its inherent
values, biodiversity and future productivity and without undesirable effects
on the physical and social environment;

dd. Sustainable use refers to the use of forest resources in a way and a rate
that does not lead to its long-term decline, thereby maintaining its potential to
meet the needs and aspirations of present and future generations;

ee. Tenure refers to the guaranteed and peaceful access and use of a specific
forest land and the resources found therein through an agreement, contract,
or grant which cannot be altered or abrogated without due process;

‘Jf, Watershed refers to an area of land drained by a stream or fixed body of
wal and its tributaries with a common outlet for surface runoff. A
watershed can be part of a larger landscape that includes connections from
the head waters to the reef; and

9g. Watershed reservation refers to a forest land that has been proclaimed by

the President and by law as such, primarily for water production purposes,

although other compatible uses may be allowed under sustainable and

atin toe concepts.
ARTICLE II

SUSTAINABLE USE OF FOREST LANDS AND FOREST RESOURCES

Sec. 7. Administration, Development, Management and Sustainable use of
Forest Lands. The development and sustainable use of forest lands and forest
resources shall be under the full supervision and control of the State. Towards



this end, the State may directly undertake such activities or enter into
technical and financial agreements with qualified persons.

The DENR, through the Forest Management Bureau, hereinafter referred to as
FMB, shall be responsible for the administration, development, management, and
sustainable use of forest lands as defined in this Act. It shall have the authority
to str management agreements or issue tenure instruments on behalf of

the ent.

Sec. 8. Forest Land Delineation. The delineation of forest lands as completed
by the DENR shall be adopted. All forest lands categorized as public forest
lands shall not be reclassified, except through an Act of Congress.

Sec. 9. Management of Forest Lands. All forest lands shall be managed for
protection or production purposes.
a. |All areas within the forest lands designated or set aside as such
constitute protection forest lands. These shall consist of the follow-
ing
1.Primary and secondary forests;
2.All areas that are one thousand (1,000) meters above sea level;

3.Limestone forests, forests over ultramafic rocks, peat swamps, beach-
es, and freshwater swamps;

4.All existing natural mangroves;
5.All areas with a slope of fifty percent (50%) or more;

6.All areas along the bank of rivers and streams, and the shores of the
seas and lakes throughout the entire length and within a zone of three (3)
meters in urban areas, twenty (20) meters in agricultural areas and forty
(40) meters in forest areas, along their margins which are subject to the
¢asement of public use; and

7.All watersheds that have been proclaimed by the President or by law
as such, primarily for water production purposes or for other compatible
uses under sustainable and multiple-use management concepts.

All extractive activities, such as harvesting, gathering, and collection of
forest resqurces except non-timber forest products and scientific and educational
use as permitted by the FMB, are prohibited within forest lands for protection pur-
poses: Provided, That the sustainable traditional resource rights of ICCs/IPs as de-
fined under the Republic Act No. 8371, or “The Indigenous Peoples’ Rights Act of
1997”, shall be respected: Provided, further: That such traditional activities are not
destructive of the forest, and that these activities shall promote the protection of
the forest.



Establishment of built-up facilities are also prohibited within protection for-
est lands, except for special use consistent with sustainable forest manage-

Only |indigenous species shall be planted or introduced within protection
forest ids.

b. All public forest lands not classified as protection forest lands pur-
suant to this Section shall constitute the production forest lands. These
lands shall be devoted for the production of timber and non-timber forest
products to supply the domestic forest resource demand of the coun-
try, and_ facilitate international trade of forest resources.

Sec. 10. Forest Management Units. For the purpose of operations and man-
agement,| all public forests or timber lands shall be assigned and registered as
Forest Management Units (FMUs) with the DENR: Provided, That all areas under
an existing and valid tenure agreement or management with the DENR before
the passage of this Act shall be considered as FMUs.

Each FMU shall be managed for protection or production purposes.
Protection FMUs shall have the primary function of protecting life support
systems to regulate water resources, prevent flooding, control erosion, prevent
seawater intrusion, maintain soil fertility, and conserve plant and wildlife bio-
diversity | and their ecosystem. Production FMUs shall have the primary
function of producing forest products, food, energy, or fresh water.

Sec. 11. Managers of FMUS. To ensure effective management of forest lands,
only qualified persons shall be designated managers of FMUs. An FMU manager
may be a natural or juridical person and includes local and ICC/IPs’ households,
civil society organizations, business organizations, forest land use tenure
holders, | and national andlocal government units subject to the
requirements to be provided in the implementing rules and regulations of this
Act.

Sec. 12. FMU Development and Management Planning. Every FMU shall
have a management plan formulated by the FMU Manager, reviewed and con-
curred by a Registered Professional Forester, and approved by the FMB.

In case the FMU holder is an individual, a member of an ICC/IP, or a
member of civil society, the FMB shall provide assistance in the preparation and
formulation of a management plan. In designating FMUs within a watershed,
and in awarding the appropriate tenurial instruments, priority shall be given to
indigenous peoples.

Sec. 13. Sustainable Management of Mangrove Resources. Mangrove
species planted within production forest lands can be harvested, gathered
or collected, taking into consideration the basic forestry policies and strategies

1



provided) for in this Act. The harvesting, gathering, collection of mangrove
species shall be upon the authority of FMB.

Sec. 14, Mined-Out Areas and Abandoned Fishpond Areas. Forest lands that
are considered as either mined-out areas or abandoned fishpond lease areas
shall be under the management and administration of the FMB.

Sec. 15. Sustainable Use of Forest Resources. The harvesting, gathering, and
collection of all planted forest resources within production forest lands, includ-
ing its by-products and derivatives, shall not require any clearance from the
DENR: wided, That the volume of harvested products is consistent with the
approved) management plan: Provided, further, That the DENR shall establish a
National | Forest Stock Monitoring System (NFSMS) to ensure the sustainable
use of the forest resources and strengthen the timber legality assurance
system for forest products: Provided, furthermore, That the FMB shall set up a
monitoring mechanism that will include members of the local consultative bodies:
Provided, finally, That any request for clearance for domestic transport of forest re-
sources sibmitted to the DENR shalll be acted upon within seven (7) days from the
date of a submission with the proper office. If no action has been taken by the
DENR after the lapse of seven (7) days, the clearance for transport shall be
deemed approved.

The harvesting, gathering, collection, an‘1 transport of non-timber forest
products within production forest lands shall be exempt from any clearance from
the government.

All timber and non-timber forest products planted within private lands
shall aha to the owner of the land who shall have the right to harvest, gather,
and collect the same without any clearance from the DENR or other concerned
government institutions.

Sec. 16. Regulation and Sustainable Use of Forest Resources within An-
cestral Forest Lands. The rights of the indigenous cultural communities or
indigenous peoples over their ancestral forest lands shall be respected: Provid-
ed, That the management of forest resources within those lands shall be regulat-
ed by the DENR as provided for by laws, rules, and regulations.

ARTICLE II
FOREST-BASED INDUSTRIES

Sec. 17. Development of an Open and Competitive Market for Forest Re-
sources. To meet the demands for forest goods and services, the DENR shall
promote and rationalize the establishment, operations,and development of
forest-based industries. The DENR shall institute measures to develop an open
and competitive market for forest products including the liberalization of forest
products sting, transport, and marketing.

Sec. 18, Export of Certified Forest Products. No person shall sell or offer for
sale any forest resources in the international market without complying with the
certification system established by the Government. Failure to adhere to the

12


established standards, or any act of falsification Shall be sufficient cause for
the cancellation of export licenses and other permits authorizing the
manufacture or sale of such resources.

Sec. 19. Regulation of Forest-Based Industries. All processing plants using
forest resources as raw materials shall be subject to existing regulations
prescribed by law, such the Environmental Impact Assessment (EIA) System: Pro-
vided, That these processing plants _are registered with the Department of Trade
and Industry and have been issued the required clearance from the concerned
Lau.

Sec. 20. Support for Private Investments and Economic Contribution. For-
est-based industries shall be given appropriate incentives in order to encourage
global competitiveness and enable them to support demand for wood and other
products, and enhance their economic contribution to the country. Agro-
forestry economic zones may be established in order to attract local and foreign
investments.

Sec. 21. Community-Based Forest Enterprises. Economic activities, practices
and forest-based enterprises of local communities and ICCs/IPs that promote
the sustainable use of forest resources shall be supported and promoted to ad-
dress food security and improve their quality of life.

ARTICLE IV
SLING CONDITIONS FOR SUSTAINABLE FOREST MANAGEMENT

Sec. 22. Forest Land Use and Tenure Instruments. The DENR may under-
take the development and sustainable use of forest lands and forest resources
found therein in cooperation with qualified persons, whether natural or juridi-
cal, through tenure instruments. The order of priority in the provision of land use
rights shall be as follows:

a. Duly recognized indigenous peoples, organizations, and households in the
case of FMUs within ancestral forest lands;

b. Holders of valid and existing forestry agreements with DENR and FMB;

c. Investors on forest lands with free and prior informed consent
) with indigenous peoples; and

d. Investors on public forest lands that are not under any agreement
with the DENR and other persons.

Any person who is party to any of the agreements mentioned in this sec-
tion shall not be allowed to transfer or convey rights vested by the agreements
within five (5) years from the issuance of the agreement. Thereafter, the person
shall be able to transfer, or convey the rights of interests therein subject to a
written authority from the Secretary or duly authorized representative: Provid-



ed, That the transferor has complied with the terms and conditions of the
agreement: Provided, further, That the transferee shall assume the obligations
of the transferor.

All parcels of public forest lands that are not covered by any management
agreement or tenure instrument shall be converted to FMUS.

Sec. 23. Forest Management Agreement. The DENR and a qualified person,
whether | natural or juridical, may enter into a forest management agree-
ment for the development, sustainable use, and management of forest lands and
forest resources found therein. The forest management agreement shall be for
twenty-five (25) years and may be extended for another twenty-five (25) years.

Sec. 24. Scope of Forest Management Agreement. A forest management
agreement may be entered into for the following purposes:

a. |Agroforestry plantations, in accordance with the standards of the
DENR for forest plantations development;

b. [Forest plantation development;
c. Ecotourism development;

d. Forest restoration; and

e. Special uses for forest lands.

A forest management agreement may be entered into for a single purpose or
a combination of any of the abovementioned purposes.

Sec. 25. Special Uses of Forest Lands. Special uses of forest lands shall in-
clude the following:

a. Letihath of forest park;
b. Dry dock site;

c. Industrial processing site;

d. Herbal or medicinal plantation;
e. Fish drying site;

f. Communication station site;

cs

Public landing site or airstrip;

5 te pond or log depot;
i. Lumber yard;

a

j. Motor pool site;
k. Power station site;

L ‘fransmission line site;

4



m, Right-of-Way;

n, Farm-to-Market roads;

0. Government facility site;
P. Water reservoir; and

q. | Renewable energy projects.

Sec. 26. Qualified Persons. The following persons are qualified to enter into
a Forest Management Agreement with the State:

a. Filipino citizens;
b. |Local and ICC/IP's households, civil society organizations, small and
medium enterprises, and, and people’s organizations;

c. |Corporations or associations at least sixty percent (60%) of whose capital
is dumed by Filipinos
d. Local government units, when the purpose of the Agreement is for public
use or the establishment of government centers and facilities; or

e. Other national government agencies or government-owned or controlled
corporations, when the purpose of the Forest Management Agreement is of
national interest, such as the construction of electric transmission or distri-
bution lines, or water reservoirs.

Sec. 27. Benefit Sharing. The following schemes shall be observed by the par-
ties to a Forest Management Agreement in relation to the sharing of benefits
derived from the agreement:

a. For forest plantations and forest plantations with processing plants, the
shafing of outputs shall be based on the total gross output of the planta-
ti = hae Said sharing shall be done in a manner advantageous to
the| national interest without prejudice for incentives that may be pre-
scribed by the DENR.

b. For ecotourism purposes, the person who enters into a forest
management agreement with the State Shall pay an annual user's fee
equivalent to five percent (5%) zonal value per square meter or a fraction
“re of the nearest commercial area.

lon-income generating government facilities such as public school
sites, public hospitals or clinics, government center or offices, roads,
farm-to-market access roads, and public buildings are exempt from
paying any fee or other pecuniary obligation with the State: Provided, That
the use of these establishments or infrastructures shall not be subject to
privatization.

ce.



Sec. 28. Forestry Research, Education, Training, and Extension. The
Forestry Development Center (FDC) of the University of the Philippines Los Bafios
Research, in collaboration with schools, universities, and colleges (SUCs) as_ well
as other stakeholders, shall undertake forest policy research and tech-
nology development in support technology development in support of sustainable
forest agement.

The DENR, the Department of Science and Technology, the Commission on
Higher Education, and universities shall, within one (1) year from the passage
of this Act, prepare a comprehensive sustainable national forestry and envi-
ronmental research and technology development and transfer program in fur-
therance of sustainable forest management, which shall be implemented,
monitored, and reviewed in accordance with existing research management
systems.

Continuing professional development shall be promoted in universities and
training institutions on forestry and natural resources management subject to
the Professional Regulation Commission's (PRC) accreditation system.
Forestry ¢ducation in the Philippines shall be rationalized to ensure the quality of
formal forestry education and national and regional centers of development
and excellence in forestry and environmental education shall be established,
supported and sustained to develop high quality human resources and promote
global competitiveness. The Commission on Higher Education shall include
forest ecology and environment courses in general education curricula.

The DENR shall formulate a sustained nationwide public information and advocacy
campaign | for forests and natural resources conservation, sustainable forest man-
agement, and Climate change.

Sec. 29. The Sustainable Forest Development Fund. There is hereby es-
tablished a trust fund to be known as the Sustainable Forest Devel-
opment Fund (SFDF) to be utilized as concessional financing for forest de-
velopment, projects proposed by the managers of FMUs. The Fund shall be
administered by a government financial institution as a trust account.

The preferred government financing institution (GFI), together with the
DENR, shall invest at most 75% of the net interest income from loans to forest
development-support facilities including road networks, seedling nurseries, wa-
ter supply systems, and research facilities subject to recommendation by the
FMB.

‘The SFDF maybe augmented by _grants, donations, payment for
ecosystem services, and endowment from various sources local and international
sources. |

In addition, at least seventy percent (70%) of forest charges and govern-
ment share collected, including proceeds from the sale of confiscated forest re-

16



sources, machinery, equipment, and tools, fines, and penalties shall be set
aside for the SFDF.

Disbursements from the fund shall be made solely for the protection,
maintenance,development of the forest area, and = duly_— approved
projects endorsed by the forest management units, in the amounts authorized
by the bee subject to existing accounting, budgeting and auditing rules and
regulations: Provided, That the fund shall not be used to cover personal services
expenditures

Sec. 30. Importation and State. Forest resources may be imported into the
ee eee to existing laws, rules, and regulations. All imported forest
resources shall comply with the Philippine National Standards to be developed
by the Department of Trade and Industry in coordination with the Forest
Products Research and Development Institute and the DENR. Compliance
with these standards shall be a precondition for the sale or disposition
of these products in the Philippines.

ARTICLE V
ORGANIZATIONS AND GOVERNANCE

Sec. 31. Creation of the Position of Undersecretary for Forestry. There is
hereby cteated in the DENR the position of the Undersecretary for Forestry
who shall|perform the following functions:

a. Oversee the provision of technical, marketing, financial, tenurial and
infrastructure support to persons and entities engaged in FMU management;
b. Ensure watershed-based planning and monitoring processes are ob-
served in forestry-related developments;

c. Facilitate institutional linkages and convergence initiatives among
forestry stakeholders in support of effective development and manage-
ment of forest lands consistent with its protection and production uses;

d. Provide scientific information-based policy recommendations in aide of
sustainable forest management; and

e. Promote cost-effectiveness of forestry investments among local and in-
ternational investors and donors in line with sustainable forest manage-
ment.

The President of the Republic of the Philippines shall appoint the Undersec-
retary whose office's structure and Staffing shall be recommended by the DENR
Secretary subject to existing laws, rules, and regulations.

Sec. 32. Reconstitution of the Forest Management Bureau. The Forest
Management Bureau is hereby reconstituted as a line bureau under the

7



DENR. It shall be responsible for the administration, sustainable management,
development, and conservation of forest lands and forest resources of the coun-
try, with functions specifically as follows:

a. Implement all policies, planet, programs, projects and activities con-
cerning forest lands with provision for effective feedback and reporting
mechanisms;

b. Ensure the provision of technical, marketing, financial, tenurial and
= support to persons and entities engaged in FMU manage-
mi

c. Enforce watershed-based planning approaches in all forestland
development and management endeavors;
d. Encourage the participation of forestry stakeholders in all forestry-relat-

ed consultative processes;

e. Develop and implement an effective geographical information system in
aide of forestry planning, monitoring and policy formulation;

f, Monitor and evaluate the physical, environmental, and socio-economic
outcomes in the management of all FMUs; and

g. Formulate and publish periodic reports informing stakeholders of the
status of the Philippine forest lands using both qualitative and quantitative
methods.

Sec, 33. Composition of the Forest Management Bureau. As a line bureau,
the Forest Management Bureau shall be headed by a Director and assisted by
two (2) Assistant Directors who shall supervise the administrative and technical
services of the Bureau respectively. There shall be an FMB Regional Di-
rector in each administrative region with corresponding offices and positions.
Consistent with Republic Act No. 10690, or “The Forestry Profession Act”, only
registered professional foresters (RPF) shall be appointed to the aforemen-
tioned positions.

Sec. 34. Assistance of Law Enforcement Agencies. Concerned LGUs, the
Department of Interior and Local Government, and the DENR may call upon
law enforcement agencies and instrumentalities of the Government such as the
Philippine) National Police (PNP), the Armed Forces of the Philippines
(AFP), the Philippine Coast Guard (PCB), and the National Bureau of Investiga-
tion (NBI) for the enforcement of environmental laws, executive orders, and
their implementing rules and regulations.

Sec. 35. Local Government Participation. Enabling mechanisms shall be
developed to enhance the participation of the LGUs in watershed manage-
ment planning, sustainable use, conservation, and protection of forest re-
comes in their territorial jurisdiction, including forest resources which



have placed by law under the administration and management of other
government agencies.

LGUs with forest lands within their jurisdiction shall align their CLUPs, lo-
cal development plans, disaster risk reduction management plans and other
required plans according to the objectives specified herein and in the protected
area management plans.

Sec. 36. Other Government Agencies. Forest lands or portions thereof,
which have been placed under the administration and management of other gov-
cme eres, shall remain as such: Provided, That the DENR shall over-
see the administration and management of these areas based on the policies,
strategies, and programs mandated under this Act: Provided, further, That the
concerned agencies shall submit an annual accomplishment report to the
DENR.

Sec. 37. Multi-Sectoral Consultative Bodies in Relation to Natural Re-
sources Governance. Pursuant to this Act, a technical and multi-sectoral con-
sultative [body involving all direct stakeholders concerned within a watershed
shall be|convened by the DENR specifically for each FMU and cluster of
FMUS as appropriate, and shall be consulted at least once a year to review and
make recommendations pertaining to watershed-based management related poli-
cies at the local and regional level.

Sec. 38. Function of Multi-Sectoral Consultative Bodies. The body shall be
responsible for the over-all policy direction in the management of the forest
lands and forest resources found within their respective jurisdictions in accor-
dance with the provision of this Act. Specifically, it shall (a) review and recom-
mend ipa of programs and projects, (b) perform oversight func-
tions on matters pertaining to environment and natural resources, and (c) par-
ticipate in the review and recommend relevant policies for the protection, con-
servation and restoration efforts within the watershed in ensuring significant
contribution of the forestry sector to national economy, ecological sustainability,
and sustainable development closely adhering to the principles and priority
programs of the Government. Said body may also facilitate the initiation of the
LGUs’ participation in monitoring the transfer and implementation of devolved
functions to the LGUs.

Sec. 39. Power and Water Utility Service Providers. Forest lands or portions
thereof, which have been placed by law or agreement under the adminis-
tration and management of government and private power and water utility ser-
vice providers, shall be included in the partition in g of forest lands into appro-
priate categories consistent with the purpose of the assigned forest land, and shall
remain under the administration and management of the said utility service
providers concerned: Provided, That the DENR shall exercise oversight power on
the planning, management, sustainable use, and assessment of all forest re-
sources in| these areas.

19


Sec. 40. Governance Support Mechanism. The following mechanisms shall be
developed, established, and used for the effective implementation of the sustainable
forest management program:

a. The principles and practices of transparency, accountability, and par-
ticipatory decision-making, in transactions, decision, and actions af-
fecting forestry, in all levels, and the policy of streamlining, decentraliza-
tion, devolution, and deregulation shall be adopted, promoted, and institu-
tionalized in the DENR;

b. Forest land use plans Shall be integrated with the comprehensive
land use plans of local government units;

c. Networks and linkages with local and international institutions, civil
society organizations, local government units and industries involved in the
promotion and practice of sustainable forest management shall be
strengthened;

d. The DENR shall prescribe appropriate fees and government shares for
ities kinds of sustainable use, exploitation, occupation, possession,
or activities within forest lands, as well as the corresponding administra-
tive fees for permits, agreements, and other services;

e. The DENR shall have the authority to impose other fees for payment

for ecosystem services and forest protection, management, reforestation, and
development. In addition, the DENR may waive fees and charges on gov-

ent activities within forest lands that support public utility, social
welfare, national security, or national interest;

f. The DENR shall undertake the monitoring and control of forest man-
agement and sustainable use through third-party audit and certification.
A National Forest Certification System shall be established which will
outline the policy, rules, procedures, and management for implementing
forest management certification and chain-of-custody certification in
promoting timber legality assurance system in the the DENR shall develop
inent guidelines, in coordination with all stakeholders, for the imple-
mentation of this provision subsequent to the effectivity of this Act;

g. The DENR shall establish a forest management information System
which shall consist of comprehensive up-to-date information on the
physical, social, financial, economic, biological, and environmental com-
ponents of the country’s forest lands and forest resources. It shall include
a continuous monitoring system to track the sustainable use and
movement or transfer of forest-based goods and services, the changes in
the state of forest resources and ecosystem services, and its drivers. The
system shall likewise include a ground-based validation system for as-
sessing progress towards sustainable forest management;

20


h. It shall be the priority of the State to ensure that government em-
ployees involved in the implementation of the sustainable forest manage-
ment law are properly trained, sufficiently equipped, adequately compen-
sated, and given ample opportunities to participate in its implementation.

ARTICLE VI
OFFENSES AND PENALTIES

Sec. 41. Harvesting, Gathering, Collection, or Possession of Forest Re-
sources from Protection Forest Lands. Any person who shall harvest, gather,
collect, or possess any forest resource from protection forest lands shall be
punished) with imprisonment ranging from six (6) years and one (I) day to
twelve (12) years and one (1) day or a fine equivalent to ten (10) times the value
of the said forest resource. The Forest Protection Officers Shall have the
authority to estimate the present market value of the forest resources subject of
the illegal harvest, gathering, collection or possession based on the guidelines
promulgated by the DENR.

In the case of partnerships, associations, or corporations, the president,
managing partner or general manager shall be held liable.

An alien who commits these prohibited acts shall be deported after
payment of the fine imposed by the Bureau of Immigration without deportation
peveredag

Sec. 42. Illegal Harvesting, Gathering, Collection, or Possession of Forest
Resources as an Act of Economic Sabotage. Any of the acts enumerated in the
preceding section shall be considered as an economic sabotage when committed
by:

a. At least two (2) or more persons through an organized and systematic
mariner; and

b, Any person, when the amount of forest resources harvested, gath-
ered, collected, or possessed amounts to at least One million pesos
(P1,000,000.00).

The penalty of imprisonment for twenty (20) years and one (I) day up to
forty (40) years shall be imposed.

Sec. 43. Grazing Livestock in Forest Lands Without Authority. Any person
found to i caused the grazing of livestock in forest lands without authority
from the DENR Shall be punished with imprisonment of two (2) years, four (4)
months, and one (1) day up to four (4) years and two (2) months. The livestock

a



shall be confiscated in favor of the local government unit (LGU) con-
cerned.

Sec. 44. Unlawful Occupation of Forest Lands. Except for ICC/IPs occupy-
ing ancestral forest lands consistent with their CADC or CADT and the provi-
sions of Republic Act No. 8371 or “The Indigenous Peoples Rights Act”, any per-
son who, without authority from the DENR, takes possession of or occupies
any 1 of forest land shall be punished with a penalty of imprisonment of
six (6) years and one (1) day up to twelve (12) years and a fine of not less than
One hundred thousand pesos (PI00,000.00), but not more than Five hun-
dred thousand pesos (P500,000.00) and forced eviction from the area.

Sec. 45. Destruction of Forest Lands. Any person who shall destroy or
cause destruction within protection, ancestral, or public forest lands or assist,
aids, or abets another person to do so, shall be punished with a penalty of
imprisonment of six (6) years and one (I) day up to twelve (12) years, and a fine
of not legs than One hundred thousand pesos (P100,000.00,) but not more than
Five million pesos (P5,000,000.00).

Sec. 46. Unlawful Operations of Sawmills, Wood Processing Plants, and
Forest-Based Industries. Any person operating a sawmill, wood processing plant,
and forest-based industry without any authority from the DENR shall be
punished with a penalty of imprisonment for six (6) years and one (1) day up
to twelve (12) years, and a fine of not less than Five million pesos
(5,000,060.00,

If the joffender is a public official or employee, the accessory penalty of
permanent disqualification shall be imposed, including forfeiture of all gov-
ernment benefits.

All forest resources, machinery, equipment, and tools pertinent to the op-
erations of the abovementioned establishments shall be confiscated in favor of
the Government.

Sec. 47. Prohibition on the Issuance of Land Titles or Tax Declaration on
Forest Lands, All land titles and tax declaration issued over forest lands shall be
deemed void ab initio. Any person who shall issue land titles and tax declara-
tions over any forest land or a parcel thereof shall be punished with impris-
onment of six (6) years and one (1) day up to twelve (12) years, with a fine of
not less than One hundred thousand pesos (PI00,000.00), but not more than
Five hundred thousand pesos (500,000.00). The accessory penalty of disquali-
fication shall be imposed for a period of twelve (12) years and one (1) day.

Sec. 48. Non-Payment and Non-Remittance of Forestry Fees and Charges.
Any person who fails to pay the amount due and payable as forestry fees or
charges to the government or remit the same to the proper authorities within
the prescribed period shall be punished with a penalty of imprisonment for a
period of six (6) years and one (1) day up to twelve (12) years, with a fine of not


less than One hundred thousand pesos (P100,000.00), but not more than Five
hundred |thousand pesos (P500,000.00).

Sec. 49. Non-Establishment of Tree Parks and Green Spaces. Every LGU
shall establish and maintain tree parks and green spaces pursuant to their
comprehensive land use plans. Allocations for the establishment and mainte-
nance of the same shall form part of the local government unit's annual bud-
get.

Every owner of land subdivided into residential, commercial, or industrial lots
shall reserve, establish and maintain at least thirty percent (30%) of the total
land area of the subdivision, exclusive of roads, service streets and alleys as green
space for tree parks.

No subdivision plan shall be approved by the Housing and Land Use
Regulatory Board unless at least thirty percent (30%) of the total area of the
subdivision has been reserved as green space. The owner must develop the green
space within three (3) years from the approval of the subdivision plan.

Any LGU or owner of a parcel of land subdivided into residential,
commercial, or industrial lots who fails to establish green spaces or tree parks as
provided in the preceding paragraphs shall be penalized with a fine of not less
than Five hundred thousand pesos (P500,000.00), but not more than One mil-
lion pesos (P1,000,000.00).

Sec. 50. Illegal Conversion of Tree Parks and Green Spaces. Any person
who shall convert or cause to convert any tree park or green space for a
purpose inconsistent with that which is provided for by this Act shall be
punished with a penalty of imprisonment for six (6) years and one (1) day up to
twelve (12) years, or a fine not less than Five hundred thousand pe-
sos v oelomean but not more than One million pesos (P1,000,000.00).

If the| offender is a public official or employee, the accessory penalty of
disqualification shall be imposed for a period of twelve (12) years and one (1) day.
If the offender is an official or an employee of the DENR, the accessory penalty of
permanent disqualification shall be imposed.

Sec, 51. Arrest and Detention. If the apprehension of an offender was con-
ducted in| areas far from the place where persons authorized to conduct in-
quest proceedings are located, the delivery of the said person to the proper
judicial authorities shall be done within a reasonable time period, taking into
sands the ordinary travel time from the place of arrest to the place of
delivery.

In order to facilitate the filing of appropriate charges against arrested per-
sons for violations of this Act, the Department of Justice shall designate in
every city and province a special prosecutor who shall be responsible for such
filing,

23


Sec. 52. Public Auction of Forest Resources. If the confiscated forest re-
sources are in danger of deteriorating, the DENR may order that the same be
sold at public auction even before the termination of the judicial proceedings, and
the proceeds thereof shall be kept in trust until such time that the judicial
proceedings are completed and judgment is made as to the disposition of such
forest resources.

Sec. 53. Authority of Forest Protection Officers. In the performance of their
official duties, forest protection officers or other public officials or employees
authorized by the DENR shall have free access into forest lands or any parcel
thereof.

‘They are also authorized to search the exterior and interior of all vehicles
suspected to contain illegally harvested, collected, or gathered forest resources:
Provided, That the search is done in the presence of the apprehended per-
sons and |two (2) public local officials.

Finally, forest protection officers are authorized to administer oaths, and
take acknowledgments on official matters connected to the implementation of
this Act and its rules and regulations.

ARTICLE VI
ADMINISTRATIVE PROVISIONS

Sec. 54, Administrative Authority of DENR Secretary or the Duly Autho-
rized Representative to Order Confiscation. In all cases of violations of this
Act or other forest laws, rules and regulations, the DENR Secretary or a duly
authorized representative may order the confiscation of forest resources illegal-
ly harvested, collected, gathered, possessed and those that are abandoned. This
authority shall extend to all conveyances used either on land, water or air as
well as machinery, equipment, implements, and tools used in the commission of
the offense, and to dispose of the same in accordance with pertinent laws,
rules, and regulations.

Sec. 55. Administrative Authority of DENR Secretary to Impose Fines. The
DENR Secretary or a duly authorized representative, after the consultation
with the forest-based industries affected, is hereby authorized to set the amount of
fines for the offenses described in this Act and shall publish the schedule of
fines in a national newspaper of general circulation.

Sec. 56. Fines Escalation Clause. The fines herein prescribed shall be in-
creased by at least ten percent (10%) every three (3) years to compensate for infla-
tion and to enhance the deterrent purpose of such fines.

Sec. 57. Informant’s Incentive. Twenty percent (20%) of the value of confis-
cated materials shall be used as incentives to informants, including forest
management councils and forest management boards to be placed in the SFDF.
‘They shall also be entitled to free legal assistance should cases be filed against
them in the performance of official duties.

24



Sec. 58. Suits and Strategic Legal Action Against Public Participation
and the Enforcement of this Act.

a. A legal action filed to harass, vex, exert undue pressure, or stifle
any legal recourse that any person, institution, or the government has

fen or may take in the enforcement of this Act, or to protect the envi-
ronment, or uphold the environmental rights of persons, shall be treated
as|a strategic legal action against public participation and shall be gov-
erned by this Section.

b.|A suit and a strategic legal action against public participation may be
interposed as a defense by a person involved in the enforcement of envi-
ronmental laws, protection of the environment, or assertion of environmen-
tal rights. The suit or strategic legal action shall be supported by doc-

nts, affidavits, papers, and other evidence; and, if it
contains a counterclaim, must be accompanied by a prayer for damages,
attorney's fees and costs of suit.

The court shall direct the plaintiff or adverse party to file an opposition to the
suit or strategic legal action asserting why the suit is not a not a valid de-
fense within a non-extensible period of five (5) days from receipt of notice that an
answer has been filed.

The suit or strategic legal action shall be set for hearing by the court after
issuance pf the order to file an opposition within fifteen (15) days from filing
of the comment or the lapse of the period.

c. The hearing on the suit or strategic legal action shall be summary in
nature. The parties must submit all available evidence in support of
their respective positions. The party seeking the dismissal of the case
must prove by substantial evidence that the enforcement of this Act is a
legitimate action for the protection, preservation and rehabilitation of the
environment. The Party filing the action assailed as a strategic legal ac-
tion| against public participation and enforcement of this Act shall prove
by preponderance of evidence that the action is a valid claim.

d. The affirmative defense of a Strategic legal action against public par-
ticipation shall be resolved within thirty (30) days after the summary
hearing. If the court dismisses the action, the court may award
damages, attorney's fees and costs of suit under a counterclaim if such
has been filed.

If the court rejects the suit or strategic legal action, the evidence adduced
during the summary hearing shall be treated as evidence of the parties on the
merits of the case. The action shall proceed in accordance with the Rules of

Court.

25


Sec. 59. Citizen’s Suit. Any citizen may file an appropriate civil, criminal or
administrative action with the proper court against:
a. Any person who violates or fails to comply with the provisions of
this Act or its implementing rules and regulations;

b./The DENR or other implementing agencies with respect to orders,
rules, and regulations that are in contravention to this Act; and

°

Any public officer who willfully or grossly neglects the performance of
an| act specifically enjoined as a duty by this Act or rules and regula-
tions issued to implement it, or abuses the authority vested upon such
public officer, or in any manner improperly performs the duties under
this law or its implementing rules and regulations.

However, no suit can be filed until after a notice of violation is sent to the
alleged offender within thirty (30) days starting from the date of the occurrence
of the violation.

Sec. 60. Implementing Rules and Regulations. Within six (6) months from
the effectivity of this Act, the DENR, in consultation with other government
agencies and relevant stakeholders shall prepare the necessary rules and
regulations to implement this Act.

Sec. 61. Appropriations. The DENR shall immediately include in the De-
partment's program the implementation of this Act, the funding of which shall be
included in the annual General Appropriations Act.

For LGUS, the funding requirements shall be taken from their internal rev-
enue allotment (IRA) and other sources of income derived from the shares
from the different modes of agreement.

Sec. 62. Transitory Provision. Upon the approval of this Act, all existing
tenure instruments, agreements or contracts, permits, and the like, shall be
reviewed by the DENR and shall not be renewed upon their expiration unless
their terms are consistent with the provisions of this Act.

Sec. 63. Separability Clause. If any section or provision of this Act is held
unconstitutional or invalid, the remaining sections or provisions with the provi-
sions not affected thereby shall continue to be in full force and effect.

Sec, 64. Repealing Clause. All laws, decrees, executive orders, rules and reg-
ulations, issuance or parts thereof inconsistent with the pFoVisions of this Act
are hereby repealed or modified accordingly.

Sec. 65. Effectivity. This Act shall take effect fifteen (15) days after its publi-
cation in the Official Gazette or in a newspaper of general circulation.

|
Approved,

26