HOUSE. @ PR sENTATIVES
RECEIVED
Sd 2088

SEVENTEENTH CONGRESS DATE:
CONGRESS OF THE PHILIPPINES
First Regular Session
HOUSE OF REPRESENTATIVES | BY!

71 REGISTRATION UNIT
House Bill No.1 ne

Introduced by REPRESENTATIVE PIA S. CAYETANO

TIME:

EXPLANATORY NOTE

Forests play an important role in providing the country with natural resources
that contribute to economic growth and social development. These forests also
provide livelinood through raw materials that will be converted into finished products.

Apart from the economic benefits, forests also serve as protection and buffer
from natural disasters such as flood and erosions. However, due to the ecological
disturbances brought about by the carelessness of many, lives have been lost in
natural disasters that could have been averted if only our forests were preserved

For this reason, the proposed Sustainable Forest Management Act aims to
ensure that our forests are properly managed to meet the needs of the present and
future generations.

The bill mandates the development of an effective and sustainable forest
management strategy based on the allocation of forestland uses and by promoting
land use practices that will not only be productive but will also conserve forest
resources such as soil, lumber, and water. This forest management strategy will also
work to protect existing forest resources, conserve our fragile biodiversity and
rehabilitate deforested or denuded ares It is also envisioned to promote and
stimulate food production activities without compromising forested areas

This bill likewise provides for a Community-Based Forest Management
Program (CBFMP) to be undertaken by concerned national agencies and the local
government units. With this, indigenous people and other forest-based communities
will be empowered to manage, develop, utilize and protect forest resources in a
sustainable way

In view of the foregoing, immediate passage bill is earnestly requested

PIAS. CAYETANO


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SEVENTEENTH CONGRESS
CONGRESS OF THE PHILIPPINES
First Regular Session
HOUSE OF REPRESENTATIVES

TEA

House Bill No. ~~

Introduced by REPRESENTATIVE PIA S. CAYETANO

AN ACT
PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
CHAPTER
BASIC FORESTRY POLICIES

SECTION 1. Short Title. This Act shall be known as the "Sustainable Forest
Management (SFM) Act’

SEC. 2. Scope and Coverage.- The provisions of this Act shall apply to all lands of
the public domain classified as needed for forestry purposes and all forest resources
found in agricultural lands: Provided, That all forests and forest resources found in
protected areas established under the National Integrated Protected Areas System
(NIPAS) shall be sustainably managed and developed following the provisions of
Republic Act No. 7586 or the NIPAS Act of 1992: Provided further, That all wildlife
resources and critical habitats found in forestlands including agricultural lands shall
be governed by the provisions of Republic Act No. 9147 or the Wildlife Resources
Conservation and Protection Act

All forestlands and forest resources therein under the administrative
jurisdiction of the Autonomous Region of Muslim Mindanao (ARMM) shall be


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managed, developed and conserved in accordance with the Regional Sustainable
Forest Management Act of 2003 of the ARMM.

SEC. 3. Basic Policies.- in pursuance of the provisions of the Constitution to
promote the general welfare and social justice 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
relative to the management, development and conservation of forests and the
resources therein’

(a) Permanency of Forest Limits- The specific limits of forestiands shall be
fixed and demarcated and thereafter, shall not be altered except through an
Act of Congress;

(b) Forest Resources to promote the common good- The use of forest
resources shall bear a social function, responsibility, and accountability to
promote the common good

(c) Sustainable and integrated management, development and conservation
of forest resources- The guiding principle in the sustainable and integrated
management, development, and conservation of forest resources shall be
focusing on these resources and on the people who manage, conserve, and
benefit from them.

In carrying out the above policies, the following strategies shall be pursued:

(i) Watershed as the basic forestland management unit- Forestlands shall
be managed, developed and conserved utilizing watershed as the
basic management unit and under the principles of sustainable and
multiple-use management, including conservation of biological
diversity;


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(il)

(ii)

(iv)

)

(vi)

wil)

Forest as a functional system unit- Forest, whether for protection or
production, is a functional ecosystem unit which could be conserved
and used sustainably and the benefits derived from it shared equitably;

Multi-sectoral participation- The participation of all sectors of society in
sustainable forestland management, development and conservation
shall be promoted, Equitable sharing of the benefits derived from
forestlands and the resources therein shall be ensured at all times;

Community-based forest management (CBFM) as a principal strategy-
Vesting access rights and responsibilities to forest-dependent families,
local communities, and indigenous peoples to undertake the
management and development of appropriate forestland resources on
a sustainable basis shall have precedence over other strategies;

Protection of forestlands and natural resources as priority concern- The
protection of forestlands, especially protection forests and the natural
resources therein shall be given priority concern in order to ensure
environmental stability, conserve biological diversity, improve
ecosystem functions and services, and provide long-term ecological
and economic benefits;

Reforestation as a priority measure- Reforestation shall be undertaken
as a priority measure to rehabilitate and restore the ecosystem
functions and services of open andior denuded and degraded
forestlands as well as improve the economic and ecological benefits of
local communities concerned;

Security of tenure of stakeholders- In pursuance of the principles of
sustainable and multi-use forest management and equitable access to
forest resources, a secured tenure shall be guaranteed to stakeholders
concerned;


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(vill) Professionalism in forest service- A dynamic, professional and people-
oriented forest service shall be established and fully supported by the
government.

SEC. 4. Definition of Terms.- As used in this Act, the following terms shall be
defined as follows:

(a) “Afforestation” shall refer to the planting of trees or the artificial
establishment of forest in areas that were not previously forested,

(b) "Agroforestry" shall refer to a strategy for the sustainable management of
land which increases their overall productivity by properly combining agricultural
crops and/or livestock with forest crops simultaneously or sequentially through the
application of management practices which are compatible with the local climate,
topography, slope, soil, as well as the cultural patterns or customary laws of the local
communities.

(c) "Agricultural Lands" shall refer to Alienable and Disposable (A&D) lands of
the public domain which have been delimited, classified and declared as such,
pursuant to the provisions of Commonwealth Act No. 141, as amended, otherwise
known as the Public Land Act.

(d) “Ancestral Domains” shall refer to all areas generally belonging to
Indigenous Cultural Communities/indigenous Peoples (ICCs/IPs) comprising lands,
inland waters, coastal areas, and natural resources therein, held under a claim of
ownership, occupied or possessed by ICCs/IPs, themselves or through their
ancestors, communally or individually since time immemorial, continuously to the
present except when interrupted by war, force majeure or displacement by force,
deceit, stealth or as @ consequence of government projects or any other voluntary
dealings entered into by government and private individuals, corporations, and which
are necessary to ensure their economic, social and cultural welfare, It shall include
ancestral land, forests, pasture, residential, agricultural, and other lands individually
owned whether alienable and disposable or otherwise, hunting grounds, burial
grounds, worship areas, bodies of water, mineral and other natural resources, and

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lands which may no longer be exclusively occupied by ICCs/IPs but from which they
traditionally had access to for their subsistence and traditional activities, particularly
the home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators,
pursuant to Republic Act No. 8371 or the Indigenous Peoples Rights Act (IPRA) and
subject to Section 56 thereof

(e) "Ancestral Lands" shall refer to land occupied, possessed and utilized by
individuals, families and clans who are members of the ICCs/IPs since time
immemorial, by themselves or through their predecessors-in-interest, under claims of
individual or traditional group ownership, continuously to the present except when
interrupted by war, force majeure or displacement by force, deceit, stealth, or as a
consequence of government projects and other voluntary dealings entered into by
government and private individuals/corporations, including, but not limited to,
residential lots, rice terraces or paddies, private forests, swidden farms and tree lots,
pursuant to Republic Act No. 8371 or the Indigenous Peoples Rights Act (IPRA) and
subject to Section 56 thereof.

(9 "Biological Diversity or Biodiversity" shall refer to the variability and variety
among living organisms including, infer alfa, terrestrial, marine and other aquatic
ecosystems and the ecological complexes of which they are part. This includes
diversity within the species (genetic diversity), between species (species diversity),
and among ecosystems (ecosystem diversity)

(g) "Buffer Zones" shall refer to identified areas outside the boundaries of and
immediately adjacent to protected areas pursuant to Section 8 of Republic Act No.
7586 or the National Integrated Protected Areas System (NIPAS) Act that need
special development control in order to avoid or minimize harm to the protected area.

(h) "Climate Change" shall refer to a change in climate that can be identified
by changes in the mean and/or variability of its properties and that persists for an
extended period typically decades or longer, whether due to natural variability or as a
result of human activity;


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(i) "Commercial Logging" shall refer to the cutting or felling of trees for the
purpose of disposing the cut or felled logs for monetary profits beyond survival and
livelihood means.

() "Communal Forest” shall refer to a tract of forestland set aside and
established for and under the protection, administration, and management of a city,
municipality, or barangay as a source of wood material for fuel, shelter, and
manufactured products; as source of water for the community; and as an area for
ecotourism and/or environmental protection or socio-economic projects of local
government units consistent with the policies and objectives of this Act and principles
of sustainable development

(k) "Community-Based Forest Management Strategy" shall refer to all
organized efforts of government to work with forest-dependent families, communities
and indigenous peoples inside and adjacent to public forestlands with the intent to
empower them and entrust to them the protection, rehabilitation, management,
conservation, and utilization of the forestlands and resources therein

()) "Conservation" shall refer to planned protection and management of
forests, wildlife and other forest resources so as to prevent waste and ensure future
use

(m) "Conveyance" shall refer to any vehicle, vessel, device or animal used in
gathering and/or transporting forest products.

(n) "Co-production Agreement" shall refer to an agreement entered into by
and between a qualified person and the government, in accord with the 1987
Constitution, for the former to develop, utilize, and manage, consistent with the
principles of sustainable development, land or a portion of a forestland wherein both
parties agree to provide inputs and share the products or their equivalent cash value.

(0) "Criteria and Indicators" shall refer to tools used to assess the current
state of sustainable forest management in the country and in forest management
units and to determine the direction of change either towards or away from SFM.

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(p) "Critical Watershed” shall refer to a drainage of a river system supporting
existing and proposed hydroelectric power, irrigation works or existing water facilities
needing immediate protection and rehabilitation to minimize erosion and improve

water yield

(q) "Degraded Forests” shall refer to natural forests with varying degrees of
disturbance or loss of structure, function, species, composition, and productivity

() "Degraded Forest Land” shall refer to a former forest land severely
damaged by the excessive harvesting or wood and non-wood or non-timber forest
products, poor forest management, repeated fires, pasture or other disturbances or
land-uses that damage soil and vegetation to a degree that inhibits or severely
delays the re-establishment of forest after abandonment.

(s) "Delimitation" shall refer to the establishment of permanent boundaries
between forestlands, national parks/protected areas and agricultural lands as a
result of demarcation

(t) "Delineation" shall refer to the establishment of boundaries between
forestlands, national parks/protected areas and agricultural lands as a result of a
conduct of site investigation, reconnaissance and field verification in accordance with
the criteria set by the Department,

(u) "Demarcation" shall refer to the establishment of boundaries using visible
markers, monuments or known natural features/landmarks, among others, as result
of the actual ground delineation.

(v) "Denuded Forestlands” shall refer to forestlands that are devoid of forest
tree cover

(w) "Department" shall refer to the Department of Environment and Natural
Resources (DENR)


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(x) "Downstream Forest Based Industry” shall refer to any industry other than
the primary (wood) processing plants that uses forest products as its raw materials
or inputs to produce higher value added forest products like furnitures, handicrafts
and the like.

(y) "Environmental Impact Assessment’ or “EIA" shall refer to the process of
predicting the likely environmental consequences of implementing a project or
undertaking and designing the appropriate preventive, mitigating, or enhancement
measures.

(z) "Environmental Compliance Certificate” or “ECC" shall refer to the
document issued by the Department certifying that a proposed project or undertaking
will not cause @ significant negative impact on the environment; that the proponent
has complied with all the requirements of the Environmental Impact Assessment
System; and that the proponent is committed to implement its approved Environment
Management Pian found in the Environmental impact Statement (EIS) or mitigation
measures identified in the Initial Environmental Examination (IEE).

(aa) "Environmental impact Statement System" or “EIS System" shall refer to
the organization, administration, and procedures that have been institutionalized
pursuant to Presidential Decree No. 1586 for purposes of assessing the significance
of the effects of any project or undertaking on the quality of the physical, biological,
and social-economic environment and designing the appropriate mitigating and
enhancement measures

(bb) "Environmentally Critical Project" shall refer to project or program that
has high potential for significant negative environmental impact.

(cc) "Forest" shall refer to land with tree crown cover or equivalent stocking
level of more than ten percent (10%) and an area of more than half a hectare (0.5
ha.). The trees should be able to reach a minimum height of five meters (5m.) at
maturity in situ. It may consist either of closed forest formations where trees of
various storeys and undergrowth cover a high proportion of the ground, or open
forest formation with a continuous vegetation cover in which tree crown cover

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exceeds ten percent (10%). Young natural stands and all plantations established for
forestry purposes which have yet to reach a crown density of ten percent (10%) or
tree height of five meters (5 m.) are included under forest, as are areas normally
forming part of the forest area which are temporarily unstocked as a result of human
intervention or natural causes but which are expected to revert to forest. Forests
include such stand types as dipterocarp, pine, mossy, molave, beach, and
mangrove, Pursuant to the Convention on Biological Diversity, forests are treated as
functional ecosystem units which should be conserved, used sustainably, and the
benefits derived from them should be shared equitably.

(dd) "Forest Charges” shall refer to the levy imposed and collected by the
government on naturally growing timber and other forest products cut, harvested, or
gathered from the forestlands and from agricultural lands

(ee) “Forest Officer” shall refer to any public officer who by the nature of his
appointment or the functions of the position to which he is appointed is delegated by
law and regulations or commissioned by competent authorities to execute,
implement or enforce the provisions of this Act and other related laws and
regulations.

(ff) "Forest Products” shall refer to goods and services derived from forest
such as, but limited to, timber, lumber .veneer, plywood, fiberboard, pulpwood, bark,
tree top, resin, gums, wood oil, honey, bees wax, nipa, rattan, or other forest growth
such as grass, shrub and flowering plants, the associated water, fish, game, scenic,
historical, and educational

(gg) "Forest Resources" shall refer to all resources whether biomass such as
plants and animals including its by-products and derivatives, which can be a raw
material, or non-biomass such as soil, water, scenery, as well as the intangible
services and values present in forestlands or in other lands devoted for forest
purposes.


(hh) "Forest/Forest-Based Community” shall refer to a group of people
residing inside or immediately adjacent to a particular forestland who are largely or
partly dependent on the forest resources found therein for their livelihood.

(li) "Forest-Based Industries" shall refer to various industries that are
dependent on raw materials or products derived from forests such as, but not limited
to, wood, rattan, bamboo, vines, latex, resins, saps, essences, fruits, flowers, or wild
flora and fauna.

(j) "Forestlands” shall refer to lands of the public domain classified as needed
for forest purposes. They shall include all forest reserves, forest reservations and all
remaining unclassified lands of the public domain

(kk) "Forestry Landscapes” shall refer to a process that aims to regain
ecological integrity and enhance human well being in deforested or degraded
forestlands

(ll) "Grazing Land" shall refer to a portion of the public domain which has been
set aside, in view of its topography and vegetation, for the raising of livestock.

(mm) "Greenhouse Gas" refers to any gas that absorbs infrared radiation in
the atmosphere. Greenhouse gases include water vapor, carbon dioxide (CO;),
Methane (CH), nitrous oxide (N,O), halogenated fluorocarbons (HCFCs), ozone
(Q.), perfluorinated carbons (PFCs) and hydrofluorocarbons (HFCs).

(nn) “Indigenous Cultural Communities/Indigenous Peoples” or "ICCs/IPs"
shall refer to a group of people or homogenous societies identified by self-ascription
and ascription by others, who have continuously lived as organized community on
communally bounded and defined territory, and who have, under claims of
ownership since time immemorial, occupied, possessed and utilized such territories,
sharing common bonds of language, customs, traditions and other distinctive cultural
traits, or who have, through resistance to political, social and cultural inroads of
colonization, non-indigenous religions and cultures, became historically differentiated
from the majority of the Filipinos. ICCs/IPs shall likewise include people who are
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regarded as indigenous on account of their descent from the populations which
inhabited the country, at the time of conquest or colonization, or at the time of
inroads of non-indigenous religions and cultures, or the establishment of present
state boundaries, who retain some or all of their own social, economic, cultural and
political institutions, but who may have been displaced from their traditional domains

or who may have resettled outside their ancestral domains.

(00) "Industrial Forest Management Agreement’ or “IFMA" shall refer to a
production-sharing contract entered into by and between the Department and a
qualified person, whether natural or juridical, wherein the former grants to the latter
the exclusive right and responsibility to invest in, develop, manage, and protect a
defined area of the production forestland, including the establishment, management
and utilization of industrial forest plantation, consistent with the principle of
sustainable development, primarily to supply the raw material requirements of wood-
based processing and energy-related industries and wherein both parties share in
the benefits therefrom.

(pp) “Industrial Forest Plantation’ or “IFP" shall refer to any tract of land
planted mainly to timber producing species, including rubber and/or non-timber
species such as rattan and bamboo, primarily to supply the raw material
requirements of existing or proposed wood processing plants, and related industries

(aq) “Joint Venture Agreement" shall refer to an agreement where a joint-
venture company is organized by its government and the contractor, with both
parties having equity shares. Aside from earings in equity, the government is
entitled to a share in the gross output

(rr) "Kaingin” shall refer to a portion of the forest land, whether occupied or
not, which is subjected to shifting and/or permanent slash-and-burn cultivation
having little or no provision to prevent soil erosion

(ss) “Kaingin Making’ shall refer to a farming system based on shifting, or
slash and burn clearing of forest for the planting of agricultural and agro-forestry
crops.

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(i) "Managed Forest" shall refer to a forest under a deliberate system of
protection, rehabilitation, and development, which may include utilization of
resources, to ensure the sustainable production of desired products and services

and the conservation of soil, water, wildlife, and other resources therein.

(uu) "Master Plan for Forestry Development’ refers to the twenty (25) years
strategic program of the Forestry Sector envisioned to guide its long term
development. This program includes the following: (a) policy and institutional
development; (b) watershed and forestry development; (c) livelihood and poverty
reduction; and (d) forest-based industry development.

(vv) "Multiple Use" shall refer to the harmonized utilization of land, soil, water,
wildlife, recreation value, grass and timber of forestlands.

(ww) "National Park" shall refer to the land of public domain classified as such
in the 1987 Philippine Constitution which includes all areas under the National
Integrated Protected Areas System (NIPAS) pursuant to RA 7586, primarily set aside
and designated for the conservation of native plants and animals, their associated
habitats and cultural diversity

(xx) "Natural Forest” shall refer to forest composed of indigenous trees, not
planted by man

(yy) "Non-Government Organization” or "NGO" shall refer to a non-stock, non-
profit, and voluntary organization:

(zz) "Permit" shall refer to a short-term privilege or authority granted by the
State to a person to utilize any limited forest resources or undertake a limited activity
within any forest land without any right of occupation and possession therein.

(aaa) "Person" shall refer to a natural or juridical person, including local forest

communities or indigenous peoples organized in accordance with law or custom

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(bb) "Plantation Forest” shall refer to forest stands established by planting or
seeding in the process of afforestation or reforestation

(ccc) "Primary Forest” shall refer to forest which have never been subject to
human disturbance or has been so little affected by hunting, gathering and tree
cutting that its natural structure, function and dynamics have not undergone any

changes that exceed the elastic capacity of the ecosystem.

(ddd) "Processing Plant” or “Processing Mill" shall refer to 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.

(eee) "Production Forestlands" ~ as defined under Sec. 6 (b) of this Act.

(fff) "Production Sharing Agreement” shall refer to an agreement wherein the
government grants the contractor the exclusive right to conduct forestry development
activities within but not title over, the contract area and shares in the production
whether in kind or in value as owner of forest product therein. The contractor
provides all the necessary financing, technology, management and personnel

(ggg) "Protected Areas” shall refer to identified portions of land and water set
aside by reason of their unique physical and biological significance, managed to
enhance biological diversity and protected against destructive human exploitation.
They shall constitute the areas established under the National Integrated Protected
Areas System: (NIPAS) pursuant to RA 7586 and shall fall under the National Park
classification of public domain

(hhh) "Protection Forests" ~ as defined under Sec. 6 (a) of this Act.

(iii) "Reforestation" shall refer to the establishment of forest plantations on

temporarily unstocked lands that are considered as forest. Also called as artificial
regeneration

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(jj) "Reservation" shall refer to an area of the public domain reserved by law
for a specific purpose.

(kkk) "Restoration" shall refer to the bringing back of the forestland to its
original state,

(il!) "Rotation" shall refer to the number of years between the initial
establishment of a plantation and the time when it is considered ready for harvesting

(mmm) "Secondary Forest" shall refer to the status or condition of a forest
subsequent to commercial logging and which there is more or less sufficient or

adequate volume of residuals of the desired species of trees for future harvest.
(nnn) "Secretary" shall refer to the Secretary of the DENR

(000) "Silvicultural Practices" shall refer to any action by man to further
improve or enhance the stand growth as a whole or the single tree for future harvest

including assisted natural regeneration and tree surgery, among others.

(ppp) "Sustainable Development” shall refer to development that meets the
needs of the present without compromising the ability of the future generations to
meet their own needs.

(qqq) "Sustainable Forest Management" or “SFM" shall refer to the process of
managing a forest to achieve one or more clearly specified objectives of
management with regard to production of continuous flow of desired forest products
and services without undue reduction of its inherent values and future productivity
and without undesirable effects on the physical and social environment.

(rrr) "Tenure" shall refer to guaranteed peaceful possession and use of

specific forest land area and the resources found therein, covered by an agreement,
contract, or grant which cannot be altered or abrogated without due process.

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(sss) "Timber License Agreement’ or “TLA" shall refer to a long-term license
executed by and between the Secretary of the DENR, on behalf of the government,
and the grantee for the harvesting and removal from the public forest of timber and,
in appropriate cases, also of other products

(ttt) "Watershed" shall refer to a land area drained by a stream or fixed body
of water and its tributaries having a common outlet for surface runoff.

(uuu) "Watershed Ecosystem Management’ or "WEM" shall refer to a
management system that will provide the optimum social, cultural, economic and
environmental benefits to the greatest number of people, particularly those living in,
adjacent to, or downstream of, individual watershed areas, while maintaining the
biological and cultural heritage of the country. It is the holistic multiple use and
sustainable management of all the resources within a spatial unit known as the
watershed. The Watershed Ecosystem Management is based on the following
guiding principles: (1) Ecological sustainability; (2) Social and Cultural sustainability;
(3) Economic sustainability and (4) Institutional Sustainability

(vw) "Watershed Reservation” shall refer to a forestland reservation
established to protect or improve the conditions of water yield thereof or reduce
sedimentation,

(www) Wildlife” shall refer to wild forms and varieties of flora and fauna, in all
developmental stages, including those which are in captivity or are being bred or
propagated

(xxx) "Wood-Based Industries" shall refer to various industries that use wood
as the principal raw material including but not limited to sawmilling, pulp and paper
making, and plywood and veneer manufacturing or the upstream wood-based
industries, as well as the s

econdary and tertiary wood processing or downstream
industry such as moldings and furniture manufacturing

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CHAPTER II
CLASSIFICATION OF PERMANENT FORESTLANDS

SEC. 5. Permanent Forestiands. — All lands of the public domain classified as
forestlands, including the remaining unclassified lands, shall comprise the permanent
forestlands of the country. Provided, That any reclassification shall be approved by
an Act of Congress.

SEC. 6. Sub-Classification of the Permanent Forestlands. - The permanent
forestlands shall be sub-classified into the following categories according to primary
use:

(a) Protection forestiands ~ All areas within the forestlands devoted primarily
for the protection, conservation of forest resources to ensure
environmental stability, conservation of biological diversity, improvement of
ecosystem functions and services, and provision of ecological and
economic benefits shall constitute the protection forestlands. All mossy
and primary/old growth forests and natural beach, areas above 50% slope,
areas regardless of slope which are highly erodible or too rocky for
establishment of either production forests or limited production forests,
developed for the principal objectives or establishing vegetative cover to
prevent erosion, conserve water and nurture wildlife, freshwater, swamps,
and marshes, all areas along the bank of the rivers and streams, and the
shores of the seas and lakes throughout their entire length and within the
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 easement of public use in the interest of recreation,
settlements, navigation, floatage, fishing and salvage shall also be sub-
classified as protection forestlands.

(b) Production forestiands. ~ All forestlands not sub-classified as protection
forestlands defined in this Section shall be sub-classified as production
forestlands to be devoted to the production of timber and/or non-timber
forest products or the establishment of industrial tree plantations, tree

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farms, communal forests, agroforestry, grazing, or as multiple use forests
including water-based energy areas such as but not limited to
hydrothermal and geothermal reservations: Provided, That they shall be
managed, developed, and utilized in accordance with a Department:
approved management plan based on sustainable forest management
principles

SEC. 7. Demarcation and Delimitation.- Upon approval of this Act, the Congress
shall provide funds for the Department to demarcate on the ground the actual land
classification lines: Provided, That the Secretary, upon completion of the actual
assessment of the demarcated land classification lines, shall recommend to
Congress the delimitation of the forestiands found to be still suitable and capable for
its purpose

Records pertaining to the specific limits of forestlands shall be made available
to the public upon request. Moreover, the Department shall furnish all provincial,
municipal and city government copies of the maps of permanent forestlands located
within their respective territorial jurisdictions,

CHAPTER II

ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND RESOURCES

SEC. 8. Jurisdiction and Control of Forestlands.- The Department shall be the
primary agency responsible for the conservation, management, and utilization of all
forestiands. In coordination with local government units and other government
agencies, it shall ensure that forestlands are managed, conserved, developed,
utilized, and protected consistent with the policies and strategies promulgated in this
Act. The utilization and development of forestlands including the natural resources
therein shall be undertaken in accordance with Department-approved management
plans.

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SEC. 9. Forestlands Managed by Local Government Units (LGUs).- Pursuant to
the pertinent provisions of Republic Act. No. 7160 or the Local Government Code,
LGUs shall share the responsibility in the sustainable management, development,
protection and utilization of forest resources within their territorial jurisdiction. Subject
to vested rights, LGUs and the Department, in consultation with other government
agencies, local communities, non-government organizations, academic and research
institutions and other sectors shail jointly undertake the preparation of indicative
forestiand use and watershed management plans, particularly the identification of
multiple-use areas and production forestlands within the territorial jurisdiction of each
LGU which shall be made an integral component of the latter's Comprehensive Land
Use Plan (CLUP). The LGUs shall be consulted on all forestry projects to be
implemented in their territorial jurisdiction and shall have equitable share of incomes
derived therefrom. For this purpose, the Department, the Department of Interior and
Local Government (DILG), the Leagues of Provinces, Ci

s, Municipalities, and
Barangays shall formulate a joint strategy and program to implement this provision
within one (1) year from the passage of this Act.

SEC. 10. Forestlands Under Other Government Agencies.- Forestlands and/or
portions thereof which have been assigned by law to the administration and
management of other government agencies for a specific purpose, including those
devolved to the LGUs prior to the passage of this Act, shall remain under the
administration and management of these government agencies which shall be
Tesponsible for their conservation, protection, rehabilitation, and sub-classification
into protection forestland and the specific purpose for which the entire area has been
assigned or reserved unless said assignment or reservation is consistent with the
use of such area as protection forestland. The Secretary or a duly authorized
representative shall exercise oversight functions over these forestiands. Moreover,
these forestiands shall be administered in accordance with a forest management
plan, which shall be prepared by the government agency or concemed LGU in
coordination with the Department and local communities and organizations within
one year from the effectivity of this Act. Provided, That the Department and the LGU
or government agency concemed shall periodically review, monitor, and evaluate the
implementation of the said management plan: Provided, further, That the harvesting
of forest resources and building of roads and other infrastructure therein shall be

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undertaken only with the prior approval of the Secretary and after compliance with
Environmental Impact Assessment (EIA) in accordance with Presidential Decree
No.1151 or the Philippine Environmental Policy and Presidential Decree No. 1586,
Establishing an Environmental Impact Statement System: Provided finally, That the
Secretary shall recommend to Congress or the President of the Philippines the
reversion to the Department of the jurisdiction and control over forestlands that are
no longer needed nor used for the purpose by which they have been constituted or in
case the agency or LGU concerned fails to rehabilitate, protect, and conserve the
forestland resources in accordance with the approved management plan. The
Department shall determine the use of the reverted forestlands.

SEC, 11. Forest Resources Within Alienable and Disposable Lands. ~All forest
resources planted or raised within alienable and disposable (A&D) lands belong to
the owner who shall have the right to harvest, transport, sell, contract, convey or
dispose of the same subject to existing forest laws and regulations. The Department
shall encourage and provide incentives to landowners of alienable and disposable
lands to develop, maintain and manage forests on their lands or to develop and
maintain @ tree plantation on such lands, Landowners who register their lands for
forestry purposes with the Department shall be assisted by the Department in the
preparation of a management plan: Provided, That alienable and disposable lands
devoted to the planting and harvesting of forest resources shall remain subject to the
provisions of Republic Act No. 6657 or the Comprehensive Agrarian Reform Law.

Harvesting, transport and sale of all trees planted within titled lands or tax-
declared A&D lands with corresponding approved application for patent or acquired
through court proceedings, shall be deregulated, except for naturally-growing trees,
including premium hardwood species and other timber species as determined by the
Department, where a special cutting permit issued by the Secretary shall be
required

All private plantations within titled or tax-declared A&D lands with approved

land application should be registered at the City Environment and Natural Resources

Office (CENRO) having jurisdiction over the area. For this purpose, the CENRO shall

maintain a permanent Registry book to reflect all the information contained in the
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registration form to serve as database on the extent of private plantations within its
area of responsibility. To form part of this permanent record is a certified and verified
photocopy of the land title or tax declaration with approved land application.

SEC. 12. Forest Resources Within Forestlands. - All forest resources, including
non-timber forest products, its by-products and its derivatives, whether naturally
growing, planted or raised, which have been taken or have been applied with some
silvicultural practices, within forestlands including those forest resources within the
areas covered by Certificate of Ancestral Domain Title (CADT) or Certificate of
Ancestral Land Claim (CALC), shall be issued with a permit, agreement or
clearance that are deemed necessary and appropriate by the’ Department as
recommended by the Forest Management Bureau (FMB). The transport of these
forest resources from forestiands including those from the area of the Indigenous
Cultural Communities and Indigenous Peoples covered by CADT or CALC shall be
covered by @ separate permit, agreement or clearance duly issued by the
Department. Any declaration of forest resources as endangered, threatened,
vulnerable and other restriction shall be done in coordination, consultation and
clearance from the FMB.

SEC. 13. Forest Resources Within Ancestral Domain. — The recognition,
ownership, and management of ancestral lands and domains shall be governed by
the provisions of the IPRA but any project of a holder of a CADT or any such similar
instrument to develop or use forestlands or forest resources therein that would result
in severe soil erosion or environmental degradation shall be subject to the provisions
of Environmental. Impact Assessment (EIA) in accordance with Presidential Decree
No.1151 or the Philippine Environmental Policy, Presidential Decree No. 1886,
Establishing an Environmental Impact Statement System, and this Act. The National
Commission on Indigenous Peoples (NCIP) shall coordinate and consult the
Department in providing assistance to the indigenous peoples in the sustainable
management ‘and development of forest resources within ancestral lands and
domains. The Multi-Sectoral Forest Protection Council created under Sec. 33 herein
shall, among its functions and powers, evaluate and validate the authenticity of all
CALTICALC claims and applications of the IPs prior to the conduct of all survey

activities and issuance of corresponding titles

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SEC. 14. Development of Mechanisms for Private Sector Participation in Forest
Management. The Secretary is hereby authorized to adopt appropriate
mechanisms to strengthen private sector participation in forest management, which
shall include the accreditation of a national organization of private investors including
for profit non-government organizations and people's organizations, The accredited
national organization shall assist the Department in the formulation and review of
relevant policies to ensure the contribution of the forestry sector to national economy
and sustainable development. It shall also assist the Department in evaluating
applications for forest management agreements; monitoring the performance of
holders of commercial tenurial instruments; ensuring the local supply of timber and
wood products; providing producers with access to local and international markets;
and ensuring the conservation and preservation of protection forestlands and
protected areas under the NIPAS.

CHAPTER IV
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT

SEC. 15. Sustainable Forest Management Planning.- Subject to vested or prior
rights, the Department, in consultation and coordination with LGUs, other
government agencies, local communities, non-government organizations, individual
and corporate entities, private sectors, academic and research institutions, and other
concerned sectors shall, within one (1) year from the effectivity of this Act, develop
and adopt a sustainable forest management strategy for each well-defined
watershed or other appropriate forest management unit based on criteria, indicators,
and standards for sustainable forest management which, at their minimum, address
the following requirements:

a) Rational allocation of forestland uses and promotion of land use practices
that increase productivity and conserve soil, water, and other forestland
resources;

) Protection of existing forest resources and conservation of biodiversity;

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¢) Rehabilitation or development of denuded areas to expand the forest
resource base and promote food production activities;

d) Enhancement of the socio-economic well-being of local communities
including indigenous peoples who are largely dependent on the forest for their
livelihood:

) Promotion of closer coordination between and among the Department,
LGUs, other national agencies, non-government organizations, local
communities, the private sector, academic and research institutions and other
entities in the sustainable management of forestlands;

f) Adoption of community-based forest management as a principal strategy in
the management of forestlands and resources; and

g) Integration of forest management and land use plans at the barangay or
community level to the CLUPs of cities and municipalities, including the
adoption of effective impact monitoring system of forest management
programs.

The Department shall continue to adopt the Master Plan for Forestry
Development subject to periodic review every five (5) years.

SEC. 16, Watershed Ecosystem Management Strategy.- The Watershed and
Ecosystems Planning Framework in Environment and Natural Resources
Management shall be adopted. The strategy for improved watershed resources
management shall be demand-driven, community-based, and multiple and
sustainable-use considering national priorities and concems of local stakeholders.
Watershed management programs shall be guided by ecological, socio-cultural,
economic, and institutional sustainability principles. A National Watershed
Information System shall be developed to guide policy formulation, program
development, and implementation of watershed management initiatives.

A system of prioritization of watersheds shall be pursued considering the
following:

a) water supply for domestic, irrigation, power, industrial, and commercial use;
b) contribution to the economy;

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¢) biodiversity and environmental enhancement
d) cultural and historical value; and
e) effect on downstream areas.

SEC. 17. Forestry Information System. - The Department shall establish a
forestland resource database which shall consist of a comprehensive up-to-date
information on the physical, social, economic, biological, and environmental
components of the country's forestlands. It shall include a resource monitoring
system to enable the Department and its field offices to track the utilization,
movement or transfer of forest-based goods and services from the source to their
end-users.

The Department shall conduct and /or update forest resource inventory at
least once every five (5) years to ensure effective management

SEC. 18. Environmental Impact Assessment, Accounting and Valuation.- All
new environmentally critical projects to be implemented in forestlands such as
harvesting, grazing and other special uses, mineral prospecting and exploration,
road, infrastructure, and mill construction shall be subject to Environmental Impact
‘Assessment (EIA) in accordance with Presidential Decree No. 1181 or the Philippine
Environmental Policy, and Presidential Decree No. 1586, Establishing an
Environmental Impact Statement System. The Department shall design and
implement a system of monitoring and assessment using the Criteria and Indicators
as framework and shall formulate appropriate standards as basis for assessing
progress towards sustainable forest management

Furthermore, the Department shall design and implement an appropriate
natural resources accounting and valuation system for various forestry initiatives.

CHAPTER V
COMMUNITY-BASED FOREST MANAGEMENT

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SEC. 19. Community-Based Forest Management Strategy (CBFMS). - Consistent
with the policy of sustainable and multiple use forest management, forest dependent
families, local communities, and indigenous peoples whose lives, cultures, and
general well-being are intimately linked with the forests shall be granted access to
forestlands and resources through the issuance of long-term tenure agreements.
This gives them a guarantee for peaceful occupation and entrusts to them the
responsibility to protect, manage, develop, and utilize said forest resources under the
principle of stewardship.

The Department shall develop policies, criteria, guidelines, and tenurial
instruments that will simplify, facilitate, and allow access of forest dependent
families, local communities, and indigenous peoples to forestiand resources, The
Department shall furthermore develop policies, guidelines and incentives for private
sector investors to enter into mutually beneficial relationships with forest-based
communities in pursuit of CBFMS on a sustainable forest management basis.

SEC. 20. Qualified Participants.- Organized forest communities shall be given
priority to participate in the CBFM program. Indigenous peoples shall also be
encouraged to actively participate in the implementation of CBFM activities in
recognition of their rights to their ancestral domains and lands. Organizations eligible
to participate in CBFM shall have the following qualifications

a) Members shall be Filipino citizens; and
b) Members shall be any of the following:
1, Traditionally utilizing the resource for their livelihood
2, Actually residing within the area to be awarded;
3. Residing adjacent and actually tiling portions of the area to be
awarded

CHAPTER VI

REFORESTATION, AFFORESTATION AND RESTORATION PROGRAMS

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SEC. 21. Reforestation and Restoration in Protection Forestlands. — The
reforestation and restoration of all critical watersheds and critical, denuded, and
degraded forests within protection forestlands not otherwise covered by the CBFM
program shall be given top priority and shall be vigorously pursued by the
Department consistent with the NIPAS Act and the strategies and management
plans therefor. Use of endemic species in the restoration and rehabilitation of
protection forestlands shall be adopted to enhance biological diversity therein. The
Department, in coordination with LGUs, other government agencies, NGOs, local
residents and communities, and other sectors concerned, shall identify and prioritize
forestlands to be reforested,

‘An accelerated reforestation program in identified priority protection
forestlands shail be undertaken to raise the forest cover. The Department shall allot
funds to effectively accomplish reforestation either by its own or through contract in
protection forestlands, The Department or other agencies responsible for
reforestation shall give priority to local communities in the granting of technical and
financial assistance for reforestation activities.

SEC, 22. Reforestation or Forest Plantation Development in Production
Forestlands.- In accordance with Section 43 herein, the State through the
Department may enter into joint venture, co-production, or production sharing
agreement with qualified forest community organizations, local government units,
government-owned or controlled corporations, private companies, individuals, and
other interested parties concerned in the development of forest plantations in
production forestlands: Provided, however, That portions of production forestlands
as determined by the Department as needed for protection purposes, shall not be
converted into forest plantations. Such areas shall be rehabilitated using an
appropriate forest regeneration scheme

SEC, 23. Reforestation in Forestlands under the Jurisdiction of Other
Government Agencies.- Government agencies and institutions having management
control over forestiands pursuant to a law or grant shall be responsible for the
reforestation of denuded and degraded portions of such forestlands. The
reforestation program of these agencies shall aim to increase the vegetation of the

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degraded areas, to be identified jointly by the Department and agency concerned,
The concerned agency in coordination with the Department shall prepare the
reforestation plan, and determine the ratio of forested areas at any given time.
Failure to reforest denuded and/or degraded forestland identified in the reforestation
plan within the period herein prescribed shall be sufficient ground to request for
reversion of the said forestlands to the jurisdiction and control of the Department
Provided, however, That in areas where CBFMS shall be implemented or where
there are existing facilities for basic services such as water and power as allowed by
the Department pursuant to Section 43 hereof, the completion of the reforestation
program shall be subject to the conditions provided in the tenurial document to be
awarded by the Department and the agency concerned to the participating local
community or individual or in the Forest Management Agreement of contractors
operating such facilities for basic services, as approved by the Department

SEC, 24, Reforestation in Alfenable and Disposable Lands or Private Lands.
Reforestation or the establishment of tree farms or forest plantations in private lands.
shall be encouraged: Provided, That such private lands and other alienable and
disposable lands are not prime agricultural lands as determined or certified by the
Department of Agriculture (DA). The private landowner(s) shall also be entitled to the
incentives provided for under Section 27 herein, particularly subsections (a), (b), (c),
(@), and (e): Provided, That such private forest plantations are duly registered with
the Department.

SEC, 26. Afforestation in Forestlands.- The afforestation of forestlands, including
those under the jurisdiction of other agencies, where tree vegetation is nil or have
been removed for a considerable time, shall be given priority to re-establish the
production and/or protection functions of the area to provide the goods and services
for which they are needed. Use of appropriate technology shall be applied as
necessary to make the general environment of the area suitable for the
establishment of plantations. Use of endemic species in the afforestation of
protection forestlands shall be given priority to enhance biological diversity therein. In
production forestlands, commercial fast growing species compatible with the socio-
economic and biophysical characteristics of the area shall be preferred. The
Department, in coordination with LGUs, other government agencies, NGOs, local
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residents and communities, and other sectors concerned, shall identify and prioritize
forestlands to be afforested.

SEC. 26. Afforestation in Alienable and Disposable Lands and Private Lands.-
The afforestation of private lands and other alienable and disposable lands, which
have been left idle and unproductive and have been lacking vegetation for a
considerable time, shall be encouraged: Provided, that such private lands and other
alienable and disposable lands are not prime agricultural lands as determined or
certified by the DA. The private landowner(s) shall also be entitled to the incentives
provided for under Section 27 herein, particularly subsections (a), (b), (c), (d), and
(e): Provided, that such private forest plantations are duly registered with the
Department

SEC. 27. Incentives.- To encourage qualified persons to engage in forest plantation
activities, the following incentives shall be granted, in addition to those already
provided by existing laws.
a) The agreement holder shall not be subject to any obligation prescribed or
arising out of the provisions of the National Internal Revenue Code on
withholding tax at source on interest paid on a loan/s incurred for the
development of forest plantation;
b) Amounts expended by the agreement holder in the development and
operation of a forest plantation prior to the commercial harvest shall be
regarded as ordinary and necessary expenses or as capital expenditure;
c) The Board of Investments (BO!) shall classify forest plantations as pioneer
and preferred areas of investment under its annual priority plan subject to the
rules and regulations of the said Board;
d) The agreement holder shall be given priority to access credit assistance
being granted by Government-owned, -controlled and/ or ~supported financial
institutions
) Upon the premature termination of the agreement at no fault of the holder,
all depreciable permanent and semi-permanent improvements such as roads,
buildings, and nurseries including the planted and standing trees and other
forest crops introduced and to be retained in the area shall be properly
evaluated and the holder shall be entitled to fair compensation thereof, the
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amount of which shall be mutually agreed upon by both the Department and
the agreement holder, and in case of disagreement between them, by
arbitration through a mutuaily acceptable and impartial third party adjudicator;

f) No contract or agreement shall be terminated except for cause or for reason
of public interest and only after due process; and

g) The agreement holder has the right to transfer, contract, sell, or convey his
tights to any qualified person following the guidelines to be issued by the
Secretary.

The Secretary may provide or recommend to the President or to Congress
other incentives in addition to those granted herein and in existing laws in order to
promote reforestation and the establishment of forest plantations.

SEC. 28. Voluntary Offer to Reforest.- Private landowners, whether natural or
juridical persons, may participate in reforestation and plantation development or
similar programs of the Department, with the landowner contributing his land and the
Department furnishing funds to reforest the area on a co-production agreement:
Provided, That the property shall be exclusively devoted to the planting of forest
species for at least one (1) rotation, which undertaking shall be annotated at the
back of the title of the property: Provided, further, That prime agricultural lands as
determined or certified by the DA shall not be the subject of a voluntary offer to
reforest

CHAPTER VII
TREE PARK/COMMUNAL FOREST

SEC. 29, Establishment and/or Maintenance of City or Municipal Parks or
Communal Forest.- Every city or municipality shall establish a city or municipal park
or communal forest and shall include in its yearly budget the necessary funds for its
establishment and maintenance. Upon request of the city or municipality concemed,
the Department shall set aside an appropriate area of the protection or production
forestlands as the case may be, as city or municipal park or communal forest and

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shall provide technical assistance to the local government concerned in the
development of the park or communal forest.

SEC. 30. Establishment of Tree Parks in Subdivision and Tree Planting on
Roadsides.- Every subdivision project to be developed after the passage of this Act
shall include the establishment of a tree park of not less than fifty percent (50%) of
the required total open spaces as provided in Section 2 of Presidential Decree No.
953, requiring the planting of trees in certain places. Guidelines for the establishment
of tree parks within a subdivision shall be prepared jointly by the subdivision owner
concerned, the Housing and Land Use Regulatory Board (HLURB) and the
Department. The subdivision owner shall provide the funds for this purpose, These
guidelines and allocation of funds shall be a condition precedent in the approval of
the subdivision plan. For every major public road or irrigation construction project,
the Department of Public Works and Highways (DPWH) shalll include the planting
and maintenance of trees along the road/highway or irrigation canals as landscaped
rest areas every twenty-five (25) kilometers thereof, whenever appropriate, and shall
provide adequate funds for this purpose. Each city and municipality shall also
allocate adequate funds for the planting, care, and maintenance of trees or perennial
shrubs in "greenbelts’ or “green spaces” such as road/street sides, center islands,
among others

CHAPTER VIII
FOREST PROTECTION

SEC. 31. Commercial Logging Ban in Protection forestlands. There shall be a
permanent ban on commercial logging activities in all protection forestlands defined,
categorized, and sub-classified in Section 6 (a) herein. No licenses, permits, or
agreements to cut any timber or to harvest, collect or gather non-timber forest
products therein shall be issued: Provided, That sustainable indigenous and
traditional practices of the IPs/ICCs shall be recognized and respected

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SEC. 32. Forest Protection in Production Forestlands.- Protection forestlands
found inside production forestiands shall be excluded from any logging operation
The holder of the agreement or license over these production forestlands shall
establish a buffer zone and delineate their boundaries, marking the same with

concrete monuments or any other visible, permanent, and practicable signs.

To ensure the conservation and sustainable use of forest resources in
production forestlands, holders of tenurial instruments shall submit to the
Department a Forest Management Plan (FMP) containing strict environmental
guidelines.

Upon the expiration or termination for cause of any Timber License
Agreement (TLA), no extension shall be granted and the area covered by the
agreement shall be sub-classified as protection forestland after the Department had
excluded the production forestland and degraded areas that may be subject of a
reforestation or tree plantation project

SEC. 33. Multi-Sectoral Forest Protection Council. - There shall be created a
Multi-Sectoral Forest Protection Council in every province, city and municipality
which shall be responsible for the over-all protection of the forestlands and forest
resources found therein. Among their powers and functions found in other provisions
under this Act, they shall be primarily responsible for law enforcement, prevention of
forest fires, integrated pest management and protection against forest invasive
species, The council shall be composed of representatives from DENR, NCIP,
Department of Agrarian Reform (DAR), concerned LGUs, NGOs, People’s
organizations, church and local academic institution, among others

SEC. 34. Assistance of Law Enforcement Agencies.- The Department 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), and the
National Bureau of Investigation (NBI) for the enforcement of the forest-related laws,
rules and regulations.

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SEC. 35. Role of LGUs and Local Residents.- It shall be incumbent upon LGUs
concerned to render assistance in protecting and conserving forestlands within their
respective territorial jurisdiction. Qualified local residents shall be deputized by the
Department to assist in the drive against illegal logging, kaingin-making and
forestland occupation. These deputized residents shall likewise be authorized to
arrest forest violators within their communities subject to existing laws and
regulations on arrest and detention. The LGUs shall provide assistance to these
deputized residents in cases of arrests and seizures.

SEC. 36. Prevention of Forest Fires and Control of Forest Pests and Diseases.-
In collaboration with concerned LGUs and the Bureau of Fire Protection (BFP), the
Department shall formulate and implement a fire prevention and control program,
providing incentives to LGUs, community organizations, or individuals who
participate in preventing and controlling forest or grass fire. The Department shall
likewise formulate and implement a national integrated forest pest and disease
management program including quarantine procedures for imported forest seeds
and forest products to prevent, minimize or control forest pests and diseases.

SEC. 37. Information and Rewards System. — The Department shall establish an
information and rewards system as part of the community's participation in the
protection of forest resources. The rewards shall be payable immediately upon the
establishment of prima facie proof of violation

CHAPTER IX
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION

SEC, 38. Research and Technology Development Transfer.- Research and
technology development transfer shall be strengthened to support sustainable
management of forest resources. The Department, the Department of Science and
Technology (DOST), the Commission on Higher Education (CHED), and the colleges
of forestry of State Universities shall, within one (1) year from the passage of this
Act, prepare a comprehensive national forestry and environmental research and

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technology development and transfer program in furtherance of sustainable forest
management which shall be implemented, monitored, and reviewed in accordance
with existing research management systems. Adequate and sustainable funds to
implement research and technology development plans and transfer program shall
be provided by each of the aforementioned agencies and institutions under the
General Appropriations Act

SEC. 39. Public Information, Education and Advocacy Campaign.- With the
support from LGUs, NGOs, media and other organizations, the Department, the
Philippine Information Agency (PIA), the Department of Education (DepEd), CHED,
State-owned and private universities and colleges shall formulate and implement a
nationwide program for sustained public information and advocacy campaign for
forest and natural resources conservation and sustainable forest development and
management, The DepEd shall include subjects on forest and natural resources in
the curricula for elementary and high school education, The CHED shall likewise
include ecology and environment courses in the general education curricula.
Congress shall allocate funds to the Department for the purpose of coordinating a
systematic campaign to promote community ecological awareness, including the
preparation of informational and educational materials therefore.

SEC. 40. Formal Forestry Education.. The CHED, in collaboration with the
Department, the Board of Examiners for Foresters of the Professional Regulations
Commission (PRC), Philippines Forestry Education Network and the duly accredited
national professional foresters organization shall actively pursue the rationalization of
formal forestry education and the establishment of centers of excellence in forestry
and environmental education to ensure high quality manpower output to meet the
needs of the forestry sector.

SEC. 41. Continuing Education on Forestry. A non-formal program of continuing
education shall be established to maintain the growth of the forestry profession, The
PRC Board of Examiners for Foresters and the Civil Service Commission (CSC)
shall provide the guidelines for a program in continuing education in forestry. In

cooperation with academic institutions, the Department shall develop the

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infrastructures to institutionalize non-formal continuing education for the forestry

sector.

SEC. 42, Training Centers- In coordination with TESDA, DepEd, CHED and State
Universities and Colleges (SUCs) as well as accredited institutions, the Department
shall establish and institutionalize a network of training centers in strategic parts of
the country to provide regular and up-to-date training on the various aspects of
sustainable forest management, development, and utilization to forest officers,
LGUs, NGOs, local communities, and indigenous peoples. Furthermore, the
Department shall ensure that personnel appointed to critical and sensitive positions
undergo training to prepare them to discharge their duties and responsibilities
professionally, efficiently and effectively

SEC. 43. Forestry Development Center.- The Forestry Development Center (FDC)
based in the College of Forestry and Natural Resources, University of the Philippines
at Los Barios, shall continue to serve as the primary policy research and
development center for forestry and natural resources management. The FDC shall
perform its functions in close coordination with the Department and other policy
research institutions in the country. It shall assist the Department in the formulation,
review, and evaluation of proposed and existing policies on forestry and natural
resources management.

The FDC, together with the national organization of private institutions as
stipulated in Section 14 of this Act, shall assist the Department in the formulation and
review of relevant forest and forest related policies to ensure the contribution of the
forestry sector to the national economy and sustainable development,

To enable the FDC to carry out its mandated function of policy research, it
shall have a share in the Sustainable Forestry Development Fund pursuant to
Section 64 herein

CHAPTER X

DISPOSITION AND UTILIZATION OF FOREST RESOURCES,
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SEC. 44. Modes of Forest Management Agreement.- The development, utilization,
and management of forestlands and/or forest resources shall be undertaken under
the control and supervision of the State through the Department, The State may
directly undertake such activities or it may enter into co-production, joint venture or
production sharing agreement with qualified Filipino citizens or corporations or
associations, subject to relevant laws, rules and regulations: Provided, That
interested local communities and indigenous peoples through their organized and
duly recognized associations shall be given priority in the grant of appropriate
tenurial instruments implementing the said agreements. Such tenurial instruments
and/or agreements shall have a duration of twenty-five (25) years, renewable for
another twenty-five (25) years, under such terms and conditions as may be provided
by the Secretary: Provided, further, That such tenurial instruments and/or
agreements may not be terminated except for cause or if public interest so requires,
Current valid and subsisting licenses, contracts, or agreements granted by the
government for the development, management, and utilization of forest resources
shall be allowed to continue under the same terms and conditions until their expiry,
or prior to their expiry shall be allowed to be converted into any mode authorized
herein under the guidelines promulgated by the Secretary: Provided, That no such
conversion shall be allowed in protection forestlands as defined in Section 6(a)
herein, on sub-classification of forestlands. The Department is hereby authorized to
formulate rules and regulations covering the relevant terms and conditions thereof
including the determination and collection of the government share, subject to the
approval of Congress. For watersheds and other areas where existing facilities for
basic services such as water and power are located, the Department may enter into
a forest management agreement with the service contractor in the area, Such
agreement shall have a duration of twenty-five (25) years, renewable for another
twenty-five (25) years, under such terms and conditions agreed upon by both parties:
Provided, That such agreement may not be terminated except for cause or if public
interest so requires or upon mutual agreement by the parties.

All forest development activities such as logging, reforestation, timber stand
improvement, forest protection, and delivery of community service within an area
covered by timber concessions shall be consolidated under the FMP which shall be
prepared by or under the supervision of an accredited private registered forester

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whose signature and dry seal shall appear in the plan and the supporting documents
submitted for the purpose.

SEC. 45. Minimum Conditions for the Issuance of Co-production, Joint
Venture and Production Sharing Agreement. The following provisions shall be
the minimum conditions for the issuance of co-production, joint venture and
produetion sharing agreement:

a) The agreement holder shall furnish the necessary management,
technology and financial services when required, as determined by the
Secretary;

b) A provision for government share of revenues and the manner of payment
thereof,

©) A provision on consultation and arbitration with respect to the interpretation
of the agreement;

4) A provision for anti-pollution and environmental protection measures;

@) A provision for the reforestation, restoration and protection of the forest;

) A provision for an effective monitoring scheme to be implemented the by the
Department, which shall include, but shall not be limited to periodic inspection
of all records and books of account of the agreement holders:

9) A commitment to community development;

h) The submission of a management and development plan to be approved
by the Secretary; and

i) Other provisions that the Secretary shall impose, upon the recommendation
of the Director of the FMB, that will improve and sustain the development and
management of the forestlands and its resources, which shall include, among
others, a projection of annual income and revenues generated, to be used as
basis in the determination of government shares.

SEC. 46. Transfer.- No holder of a co-production, joint venture, or production
sharing agreement or contract shall sub-contract, transfer, exchange, sell or convey
the same or any of his right or interests therein without a written authority from the
Secretary. Moreover, no transfer shall be authorized unless the agreement or
contract has been in existence and active for at least three consecutive years from

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issuance thereof; Provided, That the transferor has faithfully complied with the terms
and conditions of the said agreement or contract; the transferee has all the
qualifications and none of the disqualifications to hold the same; and the transferee
shall assume the obligations of the transferor. Failure to comply with these

conditions shall be sufficient cause for the cancellation of the agreement or contract

SEC, 47. Non-Timber Forest Products.- Rattan, bamboos, vines, herbs, exudates
and other non-timber forest products are integral parts of the forest.ecosystem, The
establishment of plantations of non-timber producing species shall be encouraged
and supported. The development, management and utilization of non-timber forest
products shall be allowed in accordance with the guidelines to be promulgated by the
Department.

However, in granting permits to harvest, utilize, gather or collect non-timber
forest products, in their natural or original state, in the production forestlands, the
priority shall be given to forest dependent families, local communities, and
indigenous peoples living near or within the subject forestlands, Further, the
gathering or collecting of animals for any purpose in the production forestland shall
be governed by the existing wildlife law and the guidelines to be promulgated by the
Department.

SEC, 48. Silvicultural and Harvesting System.- The Department shall formulate
the appropriate silvicultural and harvesting system and all measures shall be taken
to achieve an approximate balance between growth and harvest. The use of forest
products from production forestlands shall be promoted and practiced

SEC. 49. Mangrove forest. Harvesting and utilization shall only be allowed in
matured plantation forests within mangrove production forests: Provided, That in
government priority projects, harvesting of naturally grown trees shall be allowed

SEC. 50. Grazing. Land for grazing purposes shall only be limited to production

forestlands. The Department shall identify and delimit areas suitable for grazing

purposes: Provided, That no forestland fifty percent (60%) in slope or over may be

utilized for grazing purposes: Provided, further, That existing pasture lease
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agreements or forestland grazing lease agreements shall be allowed to continue
under the same terms and conditions until their expiry: Provided, finally, That
abandoned or idle, expired, or cancelled grazing or pasture lands shall be subject to
land use capability assessment and or land use suitability assessment to determine
their best use or combination of uses, No new grazing or pasture permit, lease, or
contract shall be issued, nor existing ones allowed to continue unless covered by

existing rules and regulations governing the Philippine EIS System

SEC. 81. Mining and Power Generation Operations in Forestlands.- Mining
activities in protection forestiands shall not be allowed. Power generation and small-
scale mining operations in forestlands, except in protection forestlands, may be
allowed subject to existing rules and regulations governing the Philippine EIS
System. Forest resources inside mineral reservations and permitted areas are under
the Department's jurisdiction, and their management and utilization are subject to the
provisions of this Act.

SEC, 62, Roads and Other Infrastructures.- Roads and other infrastructure
including the development of mineral reservations and energy resources inside
forestlands shall be constructed with the least impact and disturbance to the
biodiversity of the area found in such forestiands. Government agencies and their
contractors undertaking the construction of roads, bridges, communication and other
infrastructure facilities and installations inside forestlands shall seek prior authority
from the Department and shall comply with existing rules and regulations governing
the Philippine ElS System.

CHAPTER XI
FOREST-BASED INDUSTRIES.
SEC. 53. Establishment and Operations of Forest-Based Industries.- To meet
the demands for forest-based goods and services of a growing population, the State
through the Department shall promote the establishment, operation, and

development of forest-based industries in non-protection forestlands.

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SEC. 54, Incentives for Forest-Based Industries.. To enable forest-based
industries to be more efficient, competitive, and economically viable, the following
incentives are hereby granted in addition to those already provided by existing laws’

a) All processing plants or mills shall be assured of their supply of raw
materials,

preferably but not exclusively from local sources;
b) All processing plants or mills shall be granted operating permits for five (5)
years renewable for another five (5) years: Provided, That permits for
processing plants owned or operated by holders of forest management
agreements or contracts shall be co-terminus with sald agreements or
contracts.

The Department may provide on its own or propose to the President or to
Congress, other incentives to encourage the establishment and development of
integrated forest-based, particularly wood-based plants. Warranties to and
agreements with existing integrated forest-based plants to ensure the avallability of
raw materials shall be subject to the process for as long as such integrated plants
are operating. Agreements or licenses over forest areas granted to wood-based
plants shall be converted into any mode authorized in this Act. Expansion in capacity
of wood-based plants shall be encouraged and the same shall be given priority
access to production forestiands and other areas available for development as
source of raw materials.

SEC. 58, Export and Sale of Locally Produced Wood Products.- Logs derived
from natural grown trees of whatever species cut, gathered, or removed from the
forestlands and raw or rough lumber manufactured from such logs shall not be
exported. Only finished and semi-finished lumber products, wood manufactures,
wood panels, and other finished wood products from such logs may be exported.
Logs, lumber and other finished products from forest plantations shall be exported
only under such guidelines as the Secretary may promulgate. No person shall sell or
offer for sale any log, lumber, veneer, plywood or other manufactured wood products
in the international or domestic market without complying with the grading rules
established by the government, Failure to adhere to the established grading rules
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and standards, or any act of falsification on the volume of logs, lumber, veneer,
plywood or other wood products sold in the international or domestic market shall be
sufficient cause for the cancellation of export license, wood processing permit, or

other license or permit authorizing the manufacture or sale of such products.

SEC. 56, Importation and Sale of Logs and Other Forest and Wood Products.-
Logs, lumber, and other forest- and wood-based products may be imported to the
country subject to the authorization of the Secretary and to the tariff and duties under
Presidential Decree No. 1464 as well as quarantine regulations, Any product
manufactured or re-manufactured out of imported forest and wood materials shall be
allowed to be sold in the domestic or international market: Provided, That the grading
rules and standards therefore are complied with, otherwise the sanctions in Section
69 hereof shall be imposed.

CHAPTER XII
FOREST CHARGES, FEES AND GOVERNMENT SHARES:

SEC, 57. Fees and Government Shares for the Utilization, Exploitation,
Occupation, Possession of and Activities within Forestlands- The Department
shall prescribe appropriate fees and rentals for the different kinds of utilization,
exploitation, occupation, possession, or activities within forestlands: Provided, That
payment of or collection of such fees and rentals shall be waived for
parties/industries mandated by law to manage, conserve, develop and protect
forestlands and forest resources found therein, except administrative fees for the
filing and processing of applications for the issuance and renewal of licenses,
permits, and agreements: Provided, further, That watershed administrators and/or
service contractors that have forest management agreements with the Department
as provided for under Section 44 of this Act shall also be entitled to the waiver of
fees, except administrative fees.

The Department shall prescribe appropriate and equitable fees for the use of
water and forest by parties/industries concerned for power generation, domestic and
industrial irrigation, carbon sequestration and biodiversity benefits.

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SEC. 58. Forest Charges.- There shall be collected charges on each cubic meter of
timber cut in forestland, whether belonging to the first, second, third or fourth group,
twenty-five percent (25%) of the actual FOB market price based on species and
grading: Provided, however, That, in the case of pulpwood and matchwood cut in
forestland, forest charges on each cubic meter shall be ten percent (10%) of the
actual FOB market price

SEC. 59. Charges on Firewood, Branches, and Other Recoverable Wood
Wastes of Timber.- There shall be collected forest charges of ten percent (10%)
based on FOB market price on each cubic meter of firewood cut in forestland,
branches and other recoverable wood wastes of timber, such as timber ends, tops
and stumps, when used as raw materials for the manufacture of finished products.

However, if jointly authorized by the Secretaries of both the Department and
the DA, first and second group woods may be removed from land which is more
valuable for agriculture than for forest purposes to be used as firewood,

SEC. 60. Charges on Non-Timber Forest Products.- Non-timber forest products in
forestlands, as determined by DENR, shall be subject to forest charges, equivalent
to ten percent (10%) of the actual FOB market price.

SEC, 61. Determination of Market Price of Forest Products. The actual FOB
market price of forest products shall be justly determined by DENR.

These forest charges shall be applied to naturally growing timber and forest

products gathered from forestlands, alienable and disposable lands, and private
lands.

The measurement of forest products and the collection of charges thereon
shall be undertaken by the Department, which shall likewise provide for the time,
manner, and place of payment of such charges.

SEC. 62. Fees for Administrative Services Rendered by the Department.- Fees
shall be collected for various services rendered by personnel of the Department in
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connection with their duties and responsibilities as may be requested by interested
parties, including but not limited, to surveying, mapping and other similar service
activities: Provided, That administrative fees shall be waived for services rendered to
local communities or indigenous peoples in the preparation of their management
plans.

CHAPTER XIll
APPROPRIATIONS AND FINANCIAL SUPPORT

SEC. 63, Appropriations. The amount necessary to Initially implement the
provisions of this Act shall be charged against the appropriations of the Department
of Environment and Natural Resources In the current General Appropriations Act
Thereafter, such sums as may be necessary to fully implement the provisions of this
Act shall be included in the annual General Appropriations Act. For local government
units, the funding requirements shall be taken from their internal revenue allotment
(IRA) and other sources of income,

SEC. 64, Sustainable Forestry Development Fund (SFDF).- A Sustainable
Forestry Development Fund (SFDF) to be administered by the Department as a
special account in the National Treasury is hereby established to provide sustainable
funds for forest protection, reforestation, and forest development and management,
including rehabilitation and preservation of watershed areas, CBFM program,
information and educational campaign as well as scholarship programs and policy
research. At least thirty percent (30%) of the forest charges and government share in
all products removed from the forestlands, rentals, proceeds from sales of
confiscated forest products including conveyances, fines and penalties, and
administrative fees collected shall be set aside for the buildup of the SFDF. The fund
may be augmented by grants, donations, endowment from various sources,
domestic or foreign for purposes related to their functions.

Disbursements from the fund shall be subject to the usual accounting and
budgeting rules and regulations: Provided, That no amount shall be disbursed to
cover the operating expenses of the Department and other concerned agencies. A

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trust fund committee, composed of the Secretary as Chair and the Secretary of the
Department of Budget and Management (DBM), the DILG Secretary, and the
National Treasurer or their representatives shall sit as members and manage the
SFDF, with the FMB as secretariat.

SEC. 65. Creation of Sustainable Fund Facility Office (SFFO).- There shall be
created within the FMB of the DENR an office called Sustainable Fund Facility Office
to perform the following mandates:

a) Conduct further exploration, identification, and development of new and
improved and more effective financial mechanism, and examine the potential
and results of the innovative use of existing mechanisms to promote
sustainable forest management, taking into account the full range of goods
and services, including forest-related environmental services, which include
watershed protection, carbon sequestration, biodiversity conservation, energy
provision and maintenance of many ecological functions; and,

b) Develop and test rapid valuation methods which are market-based, policy
relevant and efficient, and reflect regional and national characteristics and
requirements, These valuation methods should include a focus on the
development of approaches which incorporate a wide range of values,
reflecting the overall value of forest ecosystems, as appropriate, as well as
ways to internalize the externalities.

SEC. 66. Specific Functions of SFFO.- The specific functions of SFFO are as
follows:

a) Generate new and additional public and private financial resources at the
domestic and international levels to enable the country to sustainably
manage, conserve and develop forest resources through afforestation and
reforestation and to combat deforestation and forest and land degradation;

b) Prioritize forest activities or national resources development strategies in
order to respond to increased concerns for sustainable forest management,
taking into consideration the financial resources available to them;

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c) Call upon all government agencies and non-government organizations or
institutions to give special consideration to areas or provinces with least
developed or poorly developed forest cover and to engage them in financial
cooperation to meet their needs for forest products and services and
sustainably manage their forest, and in some cases expand their forest cover,
d) Encourage private investment in sustainable forest management by
providing a stable and transparent investment environment within an
adequate regulatory framework that also encourages the re-investment of
forest revenues into sustainable forest management; and

) Operationalize an investment promotion entity taking into account the
functions and circumstances under which such an entity would operate such
as its scope in relation to existing financial mechanism.

SEC. 67. Fees from Payment for Environmental Services (PES).- The SFFO shall
formulate a certain value to environmental services and establish appropriate pricing,
institutional and redistribution systems that will lead to sustainable and socially
optimal land use practices. PES is a form of payment for ecosystem services as a
method of internalizing the positive externalities associated with a given ecosystem
or a specific resource use.

CHAPTER XIV
OFFENSES AND PENALTIES

SEC. 68. Non-Establishment of Tree Parks/Communal Forests.- Any city,
municipality or subdivision owner who fails to establish tree parks as provided in
Sections 29 and 30 herein shall be punished by a fine of not less than One Hundred
Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos
(P500,000.00), The subdivision plan will not be given approval until guidelines have
been formulated and funds have been allocated for the purpose.

SEC. 69. Harvesting, Gathering and/or Collecting Timber or Other Forest
Products Without Authority.- Any person who shali harvest, cut, gather, collect, or
remove timber or other forest products from any forestland, or naturally grown

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timber inside alienable and disposable public land and private lands except as
provided in Section 11 hereof, or forest resources in alienable and disposable lands
without authority from the Secretary or found to possess the same without pertinent
required legal documents shall be punished by imprisonment ranging from prision
mayor minimum period to reclusion temporal minimum period and/or a fine
equivalent to ten (10) times the value of the said forest product but not less than Fifty
Thousand Pesos (150,000.00): Provided, That in the case of partnerships,
associations or corporations, the president, managing partner, and general manager
shall be held liable, and if such officer is an alien, he shall, in adcition to the penalty,
be deported without further proceedings on the part of the Bureau of Immigration and
Deportation. Offenders who are public officials shall be deemed automatically
dismissed from office and permanently disqualified from holding any elective or
appointive position.

All timber or any forest products cut, gathered, collected, removed, or
possessed and all the conveyances, machinery, equipment, implements, work
animals, and tools used in connection with this violation shall be seized and
confiscated in favor of the government.

SEC. 70. Illegal Cutting as an Act of Economic Sabotage.- Any of the acts
enumerated in the preceding section committed by an armed group or by any group
through organized and systematic manner, for commercial purposes, shall be
considered an act of economic sabotage punishable by reclusion perpetua.

The commission of any of the prohibited acts by two or more individuals with
or without the aid of any mechanical device shall constitute a prima facie evidence
that the act is organized and systematic.

Any permittee/agreement holder who shall buy logs from unlicensed loggers
or loggers operating without permits shall be considered in violation of this Act and,
upon conviction, shall also be punished with reclusion perpetua.

SEC. 71. Use of Illegally Cut Timber in Government Infrastructure Projects.
Contractors of government infrastructure projects shall obtain certification from the
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Department that the logs or lumber to be used therein were obtained from legitimate
sources. The use of illegally cut naturally grown timber in government infrastructure
projects shall be sufficient cause for the imposition of penalties provided in Sec. 69,
on harvesting of forest products without authority, and Sec. 70, on illegal cutting as
an economic sabotage, including the withholding of the payment to the contractor

SEC. 72. Damage to Residual Trees.- To ensure the sustainability of the natural
forests, adequate number of residual trees shall be marked, to be retained as part of
the managed forests and as the future timber crop, before any harvesting operation
shall commence. Any marked residual tree that is damaged during such operation is
subject to a fine equivalent to four (4) times the regular forest charges.

SEC. 73. Grazing Livestock on Forestiands Without a Permit.- Any person found
to have caused the grazing of livestock in forestlands and grazing lands without an
authority under a lease or permit to graze, upon conviction, shall be penalized with
imprisonment of not less than two (2) years nor more than four (4) years and a fine
equivalent to ten times the regular rentals due in addition to confiscation of the
livestock and all improvements introduced in the area in favor of the government:
Provided, That in case the offender is a corporation, partnership, or association, the
officer or director thereof who directly caused or ordered such shall be liable. In case
the offender is a public officer or employee, he shall, in addition to the above
penalties, be deemed automatically dismissed from office and permanently

disqualified from holding any elective or appointive position in the government
service.

SEC. 74. Unlawful Occupation or Destruction of Forestlands.- Any person who
without authority from the Secretary, enters and occupies or possesses, or engages
in kaingin-making for his own private use or for others, any forestland or grazing
land, or in any manner destroys such forestland or part thereof, or causes any
damage to the timber stands and other forest product found therein, or assists, aids
or abets another person to do so, or sets a fire, or negligently permits a fire to be set
therein, or refuses lawful orders to vacate the area when ordered to do so shall,
upon conviction, be punished with penalties in the amount of not less than One
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand
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Pesos (P500,000.00) and imprisonment of not less than six (6) years nor more than
twelve (12) years for each offense: Provided, That in the case of an offender found
guilty of kaingin-making, the penalty shall be imprisonment of not less than ten (10)
years nor more than twelve (12) years and a fine equivalent to eight times the
regular forest charges due on the forest products destroyed without prejudice to
payment of the full cost of rehabilitation of the occupied areas as determined by the
Department: Provided, further, That the maximum of the penalty prescribed herein
shall be imposed upon the offender who repeats the same offense, and double the
maximum penalty upon the offender who commits the same offense for the third time
or more. In all cases, the court shall further order the eviction of the offender from the
area occupied and the forfeiture to the government of all improvements made
therein, including all vehicles, domestic animals and equipment of any kind used in
the commission of the offense. If not suitable for use by the Department, said
improvements, vehicles, domestic animals and equipment shall be sold at public
auction, the proceeds from which shall accrue to the SFDF. If the offender is an
alien, he shall be deported after serving his sentence and payment of fines, without
any further proceedings. An offender who is a government officer or employee, shall,
in addition to the above penalties, be deemed automatically dismissed from office
and permanently disqualified from holding any elective or appointive position in the
government service.

SEC. 76. Illegal Conversion of City or Municipal Parks, Communal Forests, and
Tree Parks in Subdivisions.- Any person found to have converted or caused the
conversion of a city or municipal park or communal forest, or tree parks within
subdivisions established pursuant to Sec, 29 and Sec. 30 herein and Section 2 of
Presidential Decree No, 963, requiring the planting of trees in certain places, into
other uses including the construction of permanent buildings therein, or in any
manner destroys or causes any damage to the timber stands and other forest
product found therein, or assists, aids or abets another person to do so, or sets a
fire, or negligently permits a fire to be set therein, upon conviction, shall be penalized
by imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not
less than One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred
Thousand Pesos (P500,000.00), or both fine and imprisonment at the discretion of
the Court. The offender shall likewise be imposed a fine equivalent to eight times the
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commercial value of the forest products destroyed without prejudice to payment of
the full cost of rehabilitation of the areas as determined by the Department: Provided,
further, That the maximum of the penalty prescribed herein shall be imposed upon
the offender who repeats the same offense, and double the maximum penalty upon
the offender who commits the same offense for the third time or more. The court
shall further order the forfeiture to the government of all improvements made therein,
including all vehicles, domestic animals, and equipment of any kind used in the
commission of the offense. If not suitable for use by the Department, said
improvements, vehicles, domestic animals and equipment shall be sold at public
auction, the proceeds from which shall accrue to the SFDF. An offender who is a
government officer or employee, in addition to the above penalties, shall be deemed
automatically dismissed from office and permanently disqualified from holding any
elective or appointive position in the government service.

SEC. 76, Misdeclaration or Falsification of Reports on Forest Resource
Inventory, Scaling, and Survey by a Government Official or Employee. ~ Any
public officer or employee who knowingly misdeclares or falsifies reports pertaining
to forest resource inventory, scaling, survey, and other similar activity which are
contrary to the criteria and standards established in the rules and regulations
promulgated by the Secretary therefor, after an appropriate administrative
proceeding, shall be dismissed from the service with prejudice to re-employment
Upon conviction by a court of competent jurisdiction, the same public officer or
employee shall further suffer an imprisonment of not less than eight (8) years nor
more than twelve (12) years and a fine of not less than One Hundred Thousand
Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00)
and the termination of license to practice forestry if the offender is a professional or
registered forester: Provided, That the inventory, survey, scale, classification, and
similar reports referred herein shall be rendered null and void

SEC. 77. Unlawful Operation of Sawmills.- Any person operating a sawmill or
mini-sawmill without authority from the Secretary, shall be punished by a fine of not
less than One Hundred Thousand Pesos (P100,000,00) and confiscation of the

sawmill or mini-sawmill and complementary equipment in favor of the government

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SEC. 78. Unlawful Operation of Wood Processing Plants and Downstream
Forest-Based Industries. Any person operating a wood processing plant or
downstream forest-based industry without authority from the Secretary, shall be
punished by, upon conviction by a court of competent jurisdiction, imprisonment of
not less that eight (8) years nor more than twelve (12) years and a fine of not less
than Five Hundred Thousand Pesos (P500,000,00) and confiscation of the wood
processing plant and complementary equipment in favor of the government. The
Department shall promulgate the necessary guidelines, subject to the provisions of
this Act, that will define the terms and conditions for the operation of a wood
processing plant and/or other downstream forest-based industries.

SEC. 79. Prohibition on the Issuance of Tax Declaration on Forestlands. All tax
declaration issued over forestland shall be considered null and void. Any local
government official or employee who issues a tax declaration for any purpose on any
part of forestlands, upon conviction, shall be penalized with imprisonment for a
period of not less than four (4) years nor more than eight (8) years and a fine of not
less than One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred
Thousand Pesos (P500,000,00) and perpetual disqualification from holding an
elective of appointive office

SEC, 80. Unlawful Possession of Implements and Devices Used by Forest
Officers.- Any person found possessing or using implements and devices used by
forest officers shall be penalized with imprisonment of not less than eight (8) years
nor more than twelve (12) years and a fine of not less than One Hundred Thousand
Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00)
in addition to the confiscation of such implements and devices and the automatic
cancellation of any license agreement, license, lease or permit.

Any forest officer who willingly allowed unauthorized person(s) to use these
implements and devices under his care shall be penalized with imprisonment of not
less six (6) years and one (1) day to no more than twelve (12) years and a fine of not
less than One Hundred Thousand Pesos (P400,000.00) nor more than Five Hundred
Thousand Pesos (P100,000.00).

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In addition, the said forest officer shall be dismissed from the service with
prejudice to reinstatement and with perpetual disqualification from holding an
elective or appointive position

SEC. 81. Unauthorized Introduction of Logging Tools and Equipment Inside
Forestlands.- It shall be unlawful for any person or entity to possess, bring, or
introduce any logging tools or equipment inside forestlands without prior authority,
from the Secretary or his duly authorized representative. Any person found guilty of
illegal possession of said logging tools or equipment shall be liable to imprisonment
of six (6) years and one (1) day to twelve (12) years or a fine of not less than One
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand
Pesos (P500,000.00) or both imprisonment and fine, and confiscation of said logging
tools and equipment in favor of the government,

SEC. 82, Non-Payment and Non-Remittance of Forest Charges.- Any person
who fails to pay the amount due and payable as forest charges to the government
shall not be allowed to transport, convey, sell, nor use the timber or forest product,
Moreover, failure to pay within thirty (30) days upon assessment of forest charges
shall be a ground for confiscation of the said timber or forest product in favor of the
government. Any person who fails or refuses to remit to the proper authorities said
forest charges collectible pursuant to the provisions of this Act or the National
Internal Revenue Code, as amended, or who delays, obstructs or prevents the
same, or who orders, causes or effects the transfer or diversion of the funds for
purposes other than those specified in said Acts shall, upon conviction, be
imprisoned for not less than six (6) years nor more than ten (10) years and fined
from One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred
Thousand Pesos (P500,000.00). If the offender is a corporation, partnership, or
association, the officers and directors thereof shall be liable.

SEC. 83. Institution of Criminal Action by Forest Officers.- Any forest officer shall

arrest, even without warrant, any person who has committed or is about to commit

or is committing in his presence any of the offenses defined in this chapter. The

tools, animals, equipment and conveyances used in committing the offense, and the

forest products cut, gathered, taken or possessed by the offender in the process of
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committing the offense shall also be seized and confiscated in favor of the
government. The arresting forest officer shall thereafter deliver within six (6) hours
from the time of arrest or seizure both the offender and the confiscated forest
products, conveyances, tools and equipment, or the documents pertaining to the
same, and file the proper complaint with the appropriate official designated by law to
conduct preliminary investigation and file information in court. If the arrest and
seizure are made in the forest far from authorities designated by law to conduct
preliminary investigations, the delivery to and filing of the complaint with the latter
shall be done within a reasonable time sufficient for ordinary travel from the place of
arrest to the place of delivery. The seized forest products, materials, conveyances,
tools and equipment shall be immediately disposed of in accordance with the
regulations promulgated by the Secretary.

The Secretary may deputize any agency, barangay official, or any qualified
person to protect the forest and exercise the powers or authority provided for in the
preceding paragraph. Reports and complaints regarding the commission of any of
the offenses defined in this chapter not committed in the presence of any forest
officer or any of the deputized officers shall immediately be reported to the forest
officer assigned in the area where the offense was allegedly committed. Thereupon,
the investigating officer shall receive the evidences supporting the report or
complaint and submit the same to the appropriate official authorized by law to
conduct a preliminary investigation of criminal cases and file the information in court.

The Secretary of Justice shall designate in every city and province a special
prosecutor who shall file charges against forest violators to ensure their speedy
prosecution

SEC. 84. Liability of Custodian of Confiscated Forest Products.- Any public
officer who fails to produce the timber or forest products, including tools,
conveyances, equipment, and devices in his custody pursuant to a seizure or
confiscation made thereon, or who shall appropriate, take, misappropriate, or shall
permit another person to take such timber forest products wholly or partially, shall
‘suffer the penalty provided for in Article 217, on Malversation of Public Funds or
Property, of the Revised Penal Code. In addition, the said public officer shall be
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dismissed from service with prejudice to reinstatement and with perpetual
disqualification from holding any elective or appointive office.

CHAPTER XV
ADMINISTRATIVE PROVISIONS

SEC. 85. Strengthening of the Forest Management Sector.- in order to effectively
implement the provisions of this Act, the FMB shall be transformed into a line bureau
with functions clearly defined and enumerated under the implementing rules and
regulations of this Act. To ensure that the scientific practice of forestry in the country
is properly implemented, only registered foresters shall be appointed to the positions
of Director and Assistant Director and Regional Directors of the FMB as well as to all
other positions where the services of professional foresters are required in
accordance with existing laws and the relevant rules and regulations issued by the
Civil Service Commission (CSC) and the Professional Regulations Commission
(PRC)

SEC, 86. Authority of the Secretary on the Use of Forest Resources.- The
utilization of forest resources from natural forests found in forestlands, government
established reservations, and all other lands including ancestral domains or tinder
the management of other government agencies shall be prohibited unless covered
by permits issued by the Department: Provided, That in the case of ancestral lands
and domains, the terms of the agreement with the concerned indigenous cultural
community shall likewise govern

SEC. 87. Administrative Authority of the Secretary or his Duly Authorized
Representative to Order Confiscation.- In all cases of violations of this Act or other
forest laws, rules, and tegulations, the Secretary or his duly authorized
representative may order the confiscation of forest products illegally harvested, cut,
gathered, removed or possessed or abandoned, and all conveyances used either by
land, water, or air as well as all machinery, equipment, implements, and tools used in
the commission of the offense and to dispose of the same in accordance with
pertinent laws, regulations, or policies on the matter.

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If the confiscated forest products are in danger of deteriorating, the Secretary
may order that the same be sold at public auction even before the termination of the
Judicial proceedings, with the proceeds kept in trust to await the outcome of the
judicial proceedings.

No court of the Philippines shall have jurisdiction to issue any Writ of
Replevin, restraining order, or preliminary mandatory injunction in any case involving
or growing out of any action by the Secretary or his duly authorized representative in
the exercise of the foregoing administrative authority.

SEC, 88. Administrative Authority of the Secretary to Impose Fines.- In all cases
of violations of this Act and other forest laws, rules and regulations where fine is the
principal penalty, the Secretary, after consultation with the forest-based industries
affected, is hereby authorized to impose administratively the penalty consisting of the
amount and the schedules of the fine which shall be officially published in a national
newspaper of general circulation

SEC, 89, Authority of Forest Officers.- When In the performance of their official
duties, forest officers or other government officals or employees duly authorized by
the Secretary shall have free entry into areas covered by a contract, agreement,
license, lease or permit. Forest officers are authorized to inspect and to open closed
vans suspected to contain illegally harvested, collected or transported forest product:
Provided, That it is done in the presence of the shipper or consignee or two (2)
responsible public officials in the locality. Forest officers are authorized to administer
oath, take acknowledgment in official matters connected with the functions of their
office, or take testimony in official investigations conducted under the authority of this
Act and the implementing rules and regulations issued by the Secretary pursuant
thereof.

SEC. 90. Visitorial Powers.- The Secretary or his duly authorized representative
shall, from time to time, investigate, inspect, and examine records and other
documents except bank records related to the operation of any person granted the
privilege, contract, or agreement to utilize forest resources to determine compliance

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with the terms and conditions stipulated in the grant, contract or agreement, this Act,
and pertinent laws, rules, and regulations.

SEC. 91. Other Incentives.- Fifty percent (50%) of the value of confiscated
materials shall be used as incentives to informants and members of multi-sectoral
forest protection councils, including Department personnel. Additional incentives may
be provided to personnel of the Department, in addition to those provided under the
Government Service Insurance System (GSIS) or Workmen's Compensation Law.
They shall also be entitied to free legal assistance should legal cases be filed against
them in the performance of official duties.

SEC. 92. Citizens’ Suits. — For purposes of enforcing the provisions of this Act or its
implementing rules and regulations, any citizen may file an appropriate civil, criminal
or administrative action in 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; or

b) the Department or other implementing agencies with respect to orders, rules and
regulations issued inconsistent with 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 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 suit can be filed until after a thirty-day notice has been
given to the public officer and the alleged violator concerned and no appropriate
action 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. In the event that the citizen's suit should prevail, the Court
shall award reasonable attorney's fees, moral damages, and litigation costs as
appropriate.

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SEC. 93. Suits 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
92 herein, 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 actions of the person complaining for the enforcement of 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 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.

SEC, 94. Protection to Witnesses in Cases Involving Violation of Forestry
Laws.- Witnesses to violations of this Act or other forestry laws and regulations,
including the immediate members of the family of said witnesses shall be given
protection, security and benefit, subject to the provisions of Republic Act No. 6981,
otherwise known as “The Witness Protection, Security and Benefit Act’ and its
implementing rules and regulations.

SEC. 95. Rule-Making Authority. In consultation with the NCIP, the DILG, the
Department of Finance, the leagues of provinces, cities, and municipalities, and
other government agencies mentioned herein, the Department shall promulgate the
implementing rules and regulations within one (1) year from the effectivity of this Act.

SEC. 96. Congressional Oversight Committee on the Sustainable Forest
Management Act.- There is hereby created a Congressional Oversight Committee
composed of seven (7) members from the Senate Committee on Environment and
Natural Resources and seven (7) members from the House of Representatives
Committee on Natural Resources, The Chairpersons of the corresponding
committees shall also be the Co-chairpersons of the Oversight Committee.

The secretariat of the Oversight Committee shall be drawn from the existing
secretariat personnel of the committees comprising the oversight and the funding

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shall be taken from the appropriations of both the House of Representatives and the
Senate.

SEC. 97. Transitory Provision.- Upon the approval of this Act, the Department shall
evaluate the conditions of all forestlands covered by existing TLAs, licenses, or
permits and the like, which shall be allowed to continue until their expiry unless
terminated for cause, such as:

a) when the licensee has been found to be a dummy;

b) when the licensee has been found to be farming out the license or receiving
royalty of any kind

c) when the licensee has been found to be cutting or operating outside the limits of
the license or within an area specifically designated or sub-classified by the
Department as protection forestland;

d) when the licensee has been found to be allowing illegally-cut timber to be invoiced
under its license;

e) when the licensee has been found to be inducing any other person to log in other
areas in violation of the Department's regulations;

f) failure to submit to the Department the required copies of auxiliary invoices
covering timber manifested under the license

Q) failure to leave undamaged an adequate stand of young trees for residual growing
stock or for seeding purposes and to employ the necessary number of laborers
needed for timber management work;

h) when the licensee has, for the third time after written warning, intentionally

cut, injured or destroyed trees marked by forest officers and unmarked poles and
saplings for future growing stock, seeding, or protection;

i) failure to employ the required number of concession guards as determined

by the Department;

}) failure to protect the concession or license area or parts thereof from being
converted into kaingin, or from illegal timber cutting, and other forms of trespass;

k) when the licensee has been found to have failed to put up the processing plant for
the area within the required period, when made a condition in the award of the area
and the grant of the license;

!) failure to pay pending forest accounts;

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m) failure to maintain and make conspicuous the approved and established
boundaries of his concession or license area;

n) failure to suspend operations within a conflicted area when so required by the
Department or its authorized representatives, pending final decision of the conflict;

©) when the license is found to have been obtained through fraud or
misrepresentation or by false, misleading statements;

p) allowing a contractor to operate the license area or concession; and

q) violation of any of the terms and conditions of the license, the NIPAS Act and its
implementing rules and regulations, the Wildlife Resources Conservation and
Protection Act, or any of the provisions of law on internal revenue and labor, and
Department regulations.

Any of the violations enumerated above will be cause for the immediate cancellation
of the permit or timber license agreement.

CHAPTER XVI
FINAL PROVISIONS

SEC. 98, Separability Clause. - Should any provision herein be declared
unconstitutional or invalid, the same shall not affect the validity or legality of the other
provisions.

SEC, 99. Repealing Clause. - Subsections (b), (4), (e), (f), (g), and (i) of Section 4
of Act No, 3915; Republic Act Nos, 460 and 7161; Presidential Decree Nos. 705,
1153, 1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order Nos.
277, series of 1987, and Executive Order No. 725, series of 1981, are hereby
repealed, and all laws, orders, rules and regulations, or any part thereof which are
inconsistent herewith are likewise hereby repealed or amended accordingly:
Provided, That this Act shall not in any manner amend the IPRA and the NIPAS law.

SEC. 100. Effectivity. - This Act shall take effect thirty (30) days from the date of its

publication in the Official Gazette or in at least two (2) national newspapers of
general circulation

Approved,
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