Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
 
13th Congress 
First Regular Session 
 
House Bill No. _____ 
 
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Introduced by Rep. J.R. NEREUS O. ACOSTA 
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AN ACT 
CREATING THE NATIONAL ENVIRONMENTAL MANAGEMENT AUTORITY, 
DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, APPROPRIAT-
ING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
 
 
Be it enacted by the Senate and the House of Representatives in Congress assem-
bled. 
 
Chapter I 
1 
General Provisions 
2 
 
SECTION 1. Title. - This Act shall be known as the National Environmental 
3 
Management Authority (NEMA) Act. 
4 
SEC. 2. Declaration of Policy. - It is the policy of the State to protect and ad-
5 
vance the right of the people to a balanced ecology and a wholesome and healthy envi-
6 
ronment. Toward this end, the State shall create an agency mandated to adopt and imple-
7 
ment plans, programs, projects and activities which shall ensure protection of the envi-
8 
ronment against pollution and other impacts occasioned by man's activities. 
9 
 
Chapter II 
10 
National Environmental Management Authority 
11 
 
SEC. 3. Creation of the National Environmental Management Authority. - To 
12 
implement the policy enunciated in this Act, there is hereby created a non-stock, non-
13 
profit body corporate to be known as the National Environmental Management Authority, 
14 
hereinafter referred to as the Authority, which shall be created within One hundred 
15 
twenty (120) days after the effectivity of this Act. The Authority shall be under the gen-
16 
eral supervision of the Office of the President. 
17 
SEC. 4. Purposes and Duties of the Authority. - In pursuit of its mandate, the 
18 
Authority shall have the following general purposes and duties: 
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2 
(a) Formulate and implement an integrated approach to the improvement of the 
1 
country's environmental quality; 
2 
(b) Develop and implement a comprehensive, multi-year plan for environmental 
3 
protection and pollution control that shall form part of the National Economic and Devel-
4 
opment Authority's national development plan; 
5 
(c) Evolve an integrated, multi-sectoral and multi-disciplinary national conserva-
6 
tion strategy which shall focus on the critical life-support systems; 
7 
(d) Implement the Environmental Impact Assessment (EIA) System under Presi-
8 
dential Decree No. 1586; 
9 
(e) Formulate and enforce environmental quality standards for water, air, land, 
10 
noise, radiation, etc.; 
11 
(f) Promulgate and prescribe policies, rules and regulations for the control of wa-
12 
ter, air and land pollution, and the proper disposal of solid wastes, as well as toxic and 
13 
hazardous substances; 
14 
(g) Develop and undertake an integrated research program pertaining to environ-
15 
mental protection, pollution prevention, control and management; 
16 
(h) Monitor and evaluate the implementation of all laws relating to the regulation 
17 
and control of activities that have an impact on the maintenance of a wholesome natural 
18 
environment, undertake or recommend necessary measures thereon; 
19 
(i) Design, establish and implement a combined system of natural resources fees, 
20 
pollution charges, fines and penalties linked to an operating principles that the use or pol-
21 
luter shall bear responsibility for payment, and creating the necessary incentives to abate, 
22 
reduce, neutralize, recycle, re-use or otherwise minimize or prevent pollution; 
23 
(j) Develop a cost-effective environmental information system to support re-
24 
search and information dissemination campaigns; 
25 
(k) Prepare annual environmental status reports to be submitted to the President 
26 
and Congress; 
27 
(l) Conduct information dissemination, education and training programs relating 
28 
to environmental protection, pollution prevention, control and management; 
29 
(m) Promote cooperation and encourage greater people participation and private 
30 
initiative in environmental protection, pollution prevention, control and management; 
31 
(n) Organize the most appropriate implementing mechanism relative to the per-
32 
formance of its mandated powers and functions; 
33 
(o) Adopt, prescribe and promulgate rules and regulations governing the proce-
34 
dures of the Authority with respect to hearings, the filing of reports, the issuance and/or 
35 


 
3 
review of all permits and other rules and regulations for the proper implementation and 
1 
enforcement of this Act; 
2 
(p) Consult or seek assistance from appropriate agencies or instrumentalities for 
3 
the purpose or enforcing this Act; and 
4 
(q) Deputize or request the assistance of appropriate government agencies or in-
5 
strumentalities for the purpose of enforcing this Act and its implementing rules and regu-
6 
lations as well as the orders and decisions of the Authority. 
7 
SEC. 5. General Corporate Powers of the Authority. - The Authority shall have 
8 
the following powers: 
9 
1) To have continuous succession under its corporate name until expiration here-
10 
under or otherwise provided by law; 
11 
2) To prescribe its by-laws not inconsistent with this Act; 
12 
3) To adopt a seal and alter it at its pleasure, which shall be accorded judicial no-
13 
tice; 
14 
4) To sue and be sued; 
15 
5) To enter into contracts; 
16 
6) To lease or own real or personal property and to sell or otherwise dispose of 
17 
the same; and 
18 
7) To do and perform any and all things that may be necessary or proper to carry 
19 
out the purposes of this Act. 
20 
SEC. 6. Place of Business. - The Authority shall establish its principal office in 
21 
Metro Manila but may establish and maintain field offices, branches, subsidiaries, or 
22 
other units as may be necessary to administer its responsibilities. It may reorganize or 
23 
abolish the same as it may deem proper. Provided, that there shall be at least one branch 
24 
in every administrative region of the country.  
25 
 
26 
Chapter III 
27 
Financing 
28 
 
SEC. 7. - Capitalization and Financing. - The capital of the NEMA shall be One 
29 
billion pesos (Php1,000,000,000.00), to be fully subscribed by the Government of the 
30 
Republic, 
hereafter 
referred 
to 
as 
the 
Government, Two hundred million 
31 
(Php200,000,000.00) of which shall be fully paid for by the Government upon the effec-
32 
tivity fo this Act and the balance to be paid for within a period of five (5) years from the 
33 
effectivity of this Act, in such manner and form as the Government, through the Secretar-
34 
ies of Finance and Budget and Management may thereafter recommend for appropriation. 
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4 
SEC. 8. Loans, Credits and Other Forms of Indebtedness. - The Authority may 
1 
contract loans, credits and other forms of indebtedness when essential to the proper ad-
2 
ministration of its corporate affairs or necessary for the proper transaction of its business 
3 
or to carry out its purpose. 
4 
SEC. 9. Bonds and Other Long-Term Securities. Subject to the rules and regula-
5 
tions of the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission, 
6 
the Authority is hereby authorized to issue bonds, debentures, securities, collaterals, notes 
7 
and other obligations to finance self-liquidating projects. 
8 
SEC. 10. Exemption from Taxes. - The Authority shall be exempt from all taxes, 
9 
licenses, fees and duties, incidental to its operations. This exemption shall extend to its 
10 
subsidiaries. All notes, bonds, debentures and other obligations issued by the Authority 
11 
shall be exempt from all taxes both as to the principal and interest. 
12 
Any donation, contribution, bequest, subsidy or financial aid which may be made 
13 
to the Authority shall be exempt from estate or gift taxes, subject to the conditions pro-
14 
vided under the National Internal Revenue Code, as amended. 
15 
SEC. 11. Regulatory Fees. - The Authority may impose reasonable fees for the 
16 
issuance of permits and for periodic monitoring and inspection of pollution control or 
17 
waste collection, processing or disposal facilities. 
18 
SEC. 12. Compromise Agreements. - The Authority may compromise, condone, 
19 
or release in whole or in part, any claim of or settled liability to the NEMA, regardless of 
20 
amount involved, under such terms and conditions as may be prescribed by the Board of 
21 
Trustees to protect the interest of the Authority. 
22 
 
23 
Chapter IV 
24 
Organization 
25 
 
SEC. 13. Board of Trustees. - The corporate powers shall be exercised, all busi-
26 
ness conducted and all property of the Authority controlled and held by the Board of 
27 
Trustees to be appointed by the President. 
28 
The Board of Trustees shall be composed of the following members: 
29 
a) Director General of the Authority, Chairman 
30 
b) Secretary of Health; 
31 
c) Director General of the National Economic Development Authority; 
32 
d) Secretary of Labor; 
33 
e) Secretary of the DENR; 
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5 
f) Ten (10) members representing the following sectors: 
1 
(1) Three (3) from industry; 
2 
(2) Three (3) from environmental non-government organizations or peo-
3 
ple's organizations; 
4 
(3) Two (2) from the academe or professional groups involved in envi-
5 
ronmental protection, and 
6 
(4) Two (2) from the labor sector. 
7 
The private sector representatives shall be appointed by the President from among 
8 
the recommendees of the respective sectors. 
9 
SEC. 14. Organization. - The Authority shall be organized as follows: 
10 
(1) Office of the Director General; 
11 
(2) Office of the Deputy Director General; 
12 
(3) Administrative and Finance Division; 
13 
(4) Public Affairs Division; 
14 
(5) Legal Division; and 
15 
(6) Environmental Adjudication Commission. 
16 
The staff offices shall be as follows: 
17 
1) Environmental Planning Office; 
18 
2) Environmental Research Office; 
19 
3) Environmental and Management Information System Office; 
20 
4) Environmental Education and Training Office; and 
21 
5) Environmental Regulations Office. 
22 
SEC. 15. Director General. - The authority and responsibility for the implementa-
23 
tion of the Authority's mandate shall be vested in the Director General for Environmental 
24 
Management. He shall be appointed by the President of the Philippines, with the consent 
25 
of the Commission on Appointment, and shall enjoy the status, rank and compensation 
26 
equivalent to that of a cabinet secretary. 
27 
 
28 
Chapter V 
29 
Environmental Adjudication Commission 
30 
 
31 
SEC. 16. Environmental Adjudication Commission. - The Pollution Adjudica-
32 
tion Board (PAB) created under Executive Order No. 192 shall be transferred and at-
33 
tached to the NEMA, but only for program and policy coordination. The PAB shall be 
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6 
reorganized into the Environmental Adjudication Commission (EAC) in accordance with 
1 
this Chapter. 
2 
SEC. 17. General Jurisdiction. - The EAC, with a regional structure as herein 
3 
provided, shall have original and exclusive jurisdiction to decide cases under RA Nos.  
4 
8749, 6969 and 9003, (the Clean Water Act), Presidential Decree No. 1586, and other 
5 
special laws on pollution. 
6 
SEC. 18. Composition of the Environmental Adjudication Commission. - The 
7 
EAC shall be composed of the following: 
8 
a) Director General of the Authority - Chairman; 
9 
b) Deputy Director General; 
10 
c) Director of the Environmental Regulation Office; 
11 
d) Director of the Environmental Research Office; 
12 
e) Chief of the Legal Division; and 
13 
f) Ten (10) members representing the following sectors: 
14 
(1) Three (3) from industry; 
15 
(2) Three (3) from environmental non-government organizations or peo-
16 
ple's organizations; 
17 
(3) Two (2) from the academe or professional groups involved in envi-
18 
ronmental protection, and 
19 
(4) Two (2) from the labor sector. 
20 
The private sector representatives shall be chosen by the President from a list pf 
21 
nominees submitted by the respective sectors and endorsed by the Director General. 
22 
Upon assumption into office, the members nominated by the sector shall divest 
23 
themselves of any affiliation with the association they belong. 
24 
SEC. 19. Procedure in the EAC. - The Commission may sit en banc or in five di-
25 
visions, each composed of three members. The Commission shall sit en banc only for 
26 
purposes of promulgating rules and regulations governing the hearing and disposition of 
27 
cases before any of its divisions and regional branches and formulating policies affecting 
28 
its administration and operations. The Commission shall exercise its adjudicatory and 
29 
other powers, functions and duties through its division. Of the five divisions, the First and 
30 
Second shall handle cases coming from the National Capital Region and the Third, 
31 
Fourth and Fifth divisions, cases from other parts of Luzon, Visayas and Mindanao. 
32 
The concurrence of two (2) Commissioners of a division shall be necessary for 
33 
the pronouncement of a judgment or resolution. Whenever the required membership in a 
34 
division is not complete and the concurrence of two (2) Commissioners to arrive at a 
35 


 
7 
judgment or resolution cannot be obtained, the Chairman shall designate a number of ad-
1 
ditional Commissioners from the other divisions as may be necessary. 
2 
The conclusions of a division on any case submitted to it for decision shall be 
3 
reached in consultation before the case is assigned to a member for the writing of the 
4 
opinion. It shall be mandatory for the division to meet for purposes of the consultation 
5 
ordained herein. A certification to this effect signed by the Presiding Commissioner of 
6 
the division shall be issued and a copy thereof attached to the record of the case and 
7 
served upon the parties. 
8 
The Chairman shall be the Presiding Commissioner of the first division and the 
9 
four (4) other members from the public sector shall be the Presiding Commissioners of 
10 
the second, third, fourth and fifth divisions, respectively. In case of the effective absence 
11 
or incapacity of the Chairman, the Presiding Commissioner of the second division shall 
12 
be the Acting Chairman. 
13 
The Chairman, aided by the Executive Clerk of the Commission, shall have ad-
14 
ministrative supervision over the Commission and its regional branches and all its per-
15 
sonnel, including the Executive Environmental Arbiters and Environmental Arbiters. 
16 
The Commission, when sitting en banc, shall be assisted by the same Executive 
17 
Clerk and when acting through its Divisions, by said Executive Clerk for its Divisions, by 
18 
said Executive Clerk for the first Division and four (4) other Deputy Executive Clerks for 
19 
the second, third, fourth and fifth divisions, respectively, in the performance of such simi-
20 
lar or equivalent functions and duties as are discharged by the Clerk of Court and Deputy 
21 
Clerks of Court of the Court of Appeals. 
22 
SEC. 20. Headquarters, Branches and Provincial Extension Units. - The Com-
23 
mission and its First, Second and Third Divisions shall have their main offices in Metro-
24 
politan Manila, and the Fourth and Five Divisions in the cities of Cebu and Cagayan de 
25 
Oro, respectively. The Commission shall establish as many regional branches as there are 
26 
regional offices of the Authority, sub-regional branches or provincial extension units. 
27 
There shall be as many Environmental Arbiters as may be necessary for the effective and 
28 
efficient operation of the Commission. Each regional branch shall be headed by an Ex-
29 
ecutive Environmental Arbiter. 
30 
SEC. 21. Powers and Functions of the Environmental Adjudication Commis-
31 
sions. - The EAC shall have the following powers and functions: 
32 
a) Hear and decide all cases falling within its original jurisdiction; 
33 
b) Issue orders and decisions to compel compliance with this Act, related envi-
34 
ronmental and pollution control laws and their implementing rules and regulations; 
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8 
c) Make, alter or modify orders requiring the discontinuance of environmental 
1 
degradation or pollution specifying the conditions and the time within which such discon-
2 
tinuance must be accomplished; 
3 
d) Serve as arbiter for the determination of reparations or restitution of the dam-
4 
ages and losses resulting from environmental degradation or pollution; 
5 
e) Deputize in writing or request assistance of appropriate government agencies 
6 
or instrumentalities for the purpose of enforcing its decisions; 
7 
f) Issue an ex parte order directing the discontinuance of pollution or wastes, or 
8 
the temporary suspension or cessation of operation of the equipment, project or activity 
9 
and other acts causing environmental degradation, generating such pollutants or wastes, 
10 
without the necessity of a previous public hearing. Provided, that such ex parte order 
11 
shall be issued only in case of imminent danger to life or property. The ex parte order 
12 
shall be immediately executory and shall be effective for thirty (30) days from the date of 
13 
issuance. The EAC shall immediately conduct a hearing to determine whether or not to 
14 
issue a temporary lifting or temporary closure (cease and desist) order pending compli-
15 
ance with environmental and pending compliance with the requirements of laws and 
16 
regulations. Ex parte orders may be lifted pending compliance with the requirements of 
17 
laws and regulations. Provided, further, that the respondent shall submit: a) a commit-
18 
ment or undertaking under oath to comply with the standards and discontinue the pollut-
19 
ive discharges within a specific period of time; b) a bond, guarantee or surety to ensure 
20 
complaince; and c) a detailed good process of installing permanent pollution control de-
21 
vices, measures and processess. Provided, finally, that no lifting of issued Ex Parte Clo-
22 
sures and Cease and Desist Orders may be issued if the pollutants being dischared are 
23 
classified as toxic and hazardous; and 
24 
g) Exercise such powers and perform such other functions as may be necessary 
25 
to carry out its duties and responsibilities under this Act. 
26 
SEC. 22. Qualifications of Members of the EAC. - A member of the EAC must 
27 
be a citizen of the Philippines and must possess proven competence in field related to en-
28 
vironmental protection. The Environmental Arbiters shall be Members of the Philippine 
29 
bar and must have been engaged in the practice of law in the Philippines for at least seven 
30 
(7) years, with at least three (3) years experience or exposure in the field of natural re-
31 
sources or environmental law. 
32 
SEC. 23. Tenure and Removal of Members. - The Chairman and the other Com-
33 
missioners, the Executive Environmental Arbiters and Environmental Arbiters shall hold 
34 
office in good behavior until they reach the age of sixty-five years, unless sooner re-
35 


 
9 
moved for cause as provided by law or become incapacitated to discharge the duties of 
1 
their office. 
2 
Members from the private sector shall serve for three (3) years. 
3 
A member of the EAC may be removed from office, by order of the proper court, 
4 
on any of the following grounds: 
5 
a) Culpable violation of the Constitution; 
6 
b) Dishonesty, oppression, misconduct in office, dereliction of duty, or gross 
7 
negligence; 
8 
c) Commission of any offense involving moral turpitude or an offense punish-
9 
able by imprisonment; and 
10 
d) Unauthorized absence for three (3) consecutive meetings. 
11 
SEC. 24. Meetings and Honoraria. - The EACs shall meet at least four (4) times 
12 
a month. Each member shall receive an honorarium of at least One thousand pesos 
13 
(P1,000.00) per meeting attended. Honoraria shall be sourced from the funds of the Au-
14 
thority and the rates for honoraria may be increased through a resolution of the Author-
15 
ity's Board of Trustees. 
16 
SEC. 25. The Laguna Lake Authority (LLDA) as a Special EAC. - The LLDA 
17 
shall exercise the same powers and functions and follow the same rules of procedure as a 
18 
Special EAC Division within its territorial jurisdiction under Executive Order No. 927, 
19 
until such time that it shall have been dissolved, in accordance with Sec. 41 hereof. 
20 
Thereafter, all conflicts shall fall under the jursidiction of the proper EAC division. 
21 
SEC. 26. Filing of Actions. - Any person may file a written complaint, under 
22 
oath, with the EAC against any person who has violated laws under the EAC's jurisdic-
23 
tion. Provided, that no complaints shall be entertained three (3) years after the occurrence 
24 
of discovery of the incident complained of. Provided, further, that when it is found that 
25 
the action filed is baseless and malicious, he shall be fined an amount of not exceeding 
26 
One hundred thousand pesos (P100,000.00). 
27 
SEC. 27. Administrative Fines and Penalties. - The EAC may impose an admin-
28 
istrative fine of from Fifty thousand pesos (P50,000.00) to not more than One million pe-
29 
sos (P1,000,000,000.00) for each violation of emission or effluent standards, and Fifty 
30 
thousand pesos (P50,000.00) for other violations. Provided, that in all cases where the 
31 
violations of emission or effluent standards is continuing, the penalty shall be imposed 
32 
for every day that the discharge continues. 
33 
SEC. 28. Appeals. - Any decision, order or judgment of the EAC shall become fi-
34 
nal and executory fifteen (15) days after receipt of said decision, order or judgment. 
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10 
The decision or order of the EAC may be reviewed by the Supreme Court on Cer-
1 
tiorari provided for under the Rules of Court. 
2 
SEC. 29. Execution of Decisions. - All decisions or orders of the EAC, after the 
3 
same has become final and executory, shall be enforced and executed in the same manner 
4 
as the decisions of the Regional Trial Courts. The Commission shall have the power to 
5 
issue to the City of Provincial Sheriff or duly constituted authorities whom it may ap-
6 
point, such writs of execution as may be necessary for the enforcement of such decision 
7 
or order. 
8 
The EAC shall have the power to seize or confiscate personal property, or impose 
9 
a levy on real property of the violator to satisfy the fines owing to it. Such property shall 
10 
be sold at public auction by the Sheriff. 
11 
Any person who shall fail or refuse to comply with such decision, order or writ, 
12 
after being required to do so shall, upon application by the EAC, be punished by the 
13 
proper court for indirect contempt. 
14 
SEC. 30. Lien Upon Personal and Immovable Properties of Violators. - Fines 
15 
and penalties imposed pursuant to the provisions of this Act, upon application by the 
16 
EAC before the proper Regional Trial Court, shall constitute as a lien upon personal and 
17 
immovable properties of the violator. Such len shall in case of insolvency of the respon-
18 
dent, enjoy preference subsequent to labor's wages under Article 2241 and 2242 of Re-
19 
public Act 386, otherwise known as the New Civil Code. 
20 
 
21 
Chapter VI 
22 
Staff and Field Offices 
23 
 
24 
SEC. 31. Environmental Planning Office. - The Environmental Planning Office, 
25 
which shall be headed by a Director and assisted by an Assistant Director, shall absorb 
26 
the planning functions of the Environmental Management Bureau (EMB) of the Depart-
27 
ment of Environment and Natural Resources (DENR). As such, it shall have the follow-
28 
ing functions: 
29 
(1) Formulate comprehensive, multi-year action plans for natural resource con-
30 
servation, environmental protection and pollution control to be endorsed to NEDA for 
31 
adoption into the national development plan; 
32 
(2) Coordinate the implementation by the public and private sectors of the 
33 
NEDA-adopted multi-year plan for natural resource conservation, environmental protec-
34 
tion and pollution control; 
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11 
(3) Review, analyze and evaluate existing as well as proposed environmental pro-
1 
tection and pollution control policies, plans, programs and projects; 
2 
(4) Prepare an annual environmental quality status report to be submitted to the 
3 
President and to Congress; 
4 
(5) Conduct post-audit studies of environmental impact assessments prepared in 
5 
accordance with Presidential Decree No. 1586; 
6 
(6) Provide planning support serves to the field offices of the Authority in order 
7 
to ensure their efficient and effective operation; and 
8 
(7) Perform such other functions as may be assigned by the Director General. 
9 
SEC. 32.Environmental Research Office. - The Environmental Research Office, 
10 
which shall be headed by a Directed and assisted by an Assistant Director, shall absorb 
11 
the environmental research functions of the EMB of the DENR. As such, the Office shall 
12 
have the following functions: 
13 
(1)  Formulate and recommend to the Authority environmental quality standards 
14 
(for water, air. Land, noise, radiation, etc.) and environmental management guidelines for 
15 
gaseous, liquid, solid as well as toxic and hazardous wastes; 
16 
(2)  Formulate and recommend an integrated research program pertaining to air, 
17 
water and land pollution, including research into environmentally sound technologies and 
18 
pollution control technologies and conservation; 
19 
(3) 
Conduct research studies on specific environmental problems such as soil 
20 
erosion and deforestation, among others; 
21 
(4) 
Provide research laboratory services supportive of the Authority's exercise 
22 
of regulatory functions such as standard setting and environmental permitting activities; 
23 
(5) 
Provide research support services to the field offices of the Authority in 
24 
order to ensure their efficient and effective operation; 
25 
(6) 
Perform such other functions as may be assigned by the Director General. 
26 
SEC. 33. Environmental and Management Information Systems Office. - The 
27 
Environmental and Management Information Systems Office, which shall be headed by a 
28 
Directed and assisted by an Assistant Director, shall be primarily responsible for the de-
29 
sign-establishment and operation of an environmental and management information sys-
30 
tem, including data bank development based on geographic information gleaned from 
31 
periodic environmental surveillance, reconnaissance and monitoring activities utilizing 
32 
complementary technologies such as aerial photography and other remote sensing sys-
33 
tems. 
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12 
The Office shall absorb the information systems management functions of the 
1 
EMB of the DENR, relative to natural resource conservation and environmental protec-
2 
tion. 
3 
SEC. 34. Environmental Education and Training Office. - The Environmental 
4 
Education and Training Office, which shall be headed by a Directed and assisted by an 
5 
Assistant Director, shall be primarily responsible for the conduct of environmental educa-
6 
tion and training programs relating to natural resource conservation and the protection 
7 
and management of the environment. Said main objective of the programs is to increase 
8 
the awareness of the people regarding environmental issues and problems. It shall include 
9 
a "behavioral change and value formation" component aimed at altering polluter behavior 
10 
and inculcating the environmental ethic of stewardship and the virtue of sustainable de-
11 
velopment. 
12 
The Office shall absorb the environmental education functions of the EMB of the 
13 
DENR. 
14 
SEC. 35. Environmental Regulations Office. - The Environmental Regulations 
15 
Office shall be headed by a Directed and assisted by an Assistant Director. It shall have 
16 
the following functions: 
17 
(a)  Design, establish and institutionalize a unified environmental permit and li-
18 
censing system (covering the regulatory areas of pollution control, land use planning/ 
19 
zoning and environmental impact assessment) in order to simplify and rationalize the 
20 
processing of environment-related permits and licenses (such as the authority to con-
21 
struct, permit to operate, locational clearance issued by the Housing and Land Use Regu-
22 
latory Board and the environmental compliance certificate); 
23 
(b)  Review, analyze and evaluate pertinent technical/legal documents pertianing 
24 
to environmental permitting/licensing in order to determine the environmental acceptabil-
25 
ity and/or soundness of programs, projects and activities that might significantly affect 
26 
the environment; 
27 
(c)  Perform investigative and monitoring functions to ensure the compliance of 
28 
proponents to the Authority's rules and regulations; 
29 
(d)  Initiate proper legal actions and proceedings such as the prosecution of viola-
30 
tions of the Authority's rules and regulations and/or the cancellation of environmental 
31 
permit or license taking into account due process; 
32 
(e)  Attend to appeals and complaints from the public and parties affected by the 
33 
Authority's orders and decisions as they relate to natural resource conservation and envi-
34 
ronmental protection;  
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13 
(f)  Assist the technical support offices of the Authority in translating research and 
1 
technical findings into legal and policy form (such as guidelines, orders, rules and regula-
2 
tions, etc.) and;  
3 
(g)  Perform such other functions as may be assigned by the Director General. 
4 
SEC. 36. Field Offices of the Authority. - Field offices of the Authority shall be 
5 
established in the fourteen (14) administrative regions of the country. Each regional of-
6 
fice of the Authority shall be headed by a Regional Director, to be assisted by an Assis-
7 
tant Regional Director. Both the Regional Director and the Assistant Regional Director 
8 
shall be Career Executive Service Officers or shall possess equivalent qualification. 
9 
The regional field offices of the Authority shall be located in the country's re-
10 
gional capitals. It shall have the following functions: 
11 
1)  Implement natural resource conservation and environmental protection laws as 
12 
well as policies, plans, programs, projects and rules and regulations of the Authority in 
13 
order to achieve the objective of sustainable development in the countryside; 
14 
2)  Provide for the efficient and cost-effective delivery of the Authority's services 
15 
to the people; 
16 
3)  Coordinate with regional offices of other departments, offices, agencies in the 
17 
regional and local government units in the enforcement of natural resource conservation 
18 
and environmental protection laws; 
19 
4)  Recommend and, upon approval, implement projects on natural resource con-
20 
servation and environmental protection; 
21 
5)  Conduct natural resource assessment and environmental surveillance, recon-
22 
naissance and monitoring in the region and formulate regional action plans for natural 
23 
resource conservation and environmental protection; 
24 
6) Conduct appropriate field research supportive of the Authority's policies, 
25 
plans, programs and projects; 
26 
7) Respond to appeals, complaints and queries from the public regarding natural 
27 
resource conservation and environmental protection; and 
28 
8) Perform such other functions as may be assigned by the Director General. 
29 
 
30 
Chapter VII 
31 
Other Provisions 
32 
 
33 
SEC. 37. Relations with People's and Non-Governmental Organizations. - The 
34 
Authority shall promote the establishment and operation of people's and non-
35 


 
14 
governmental organizations to become active partners in the conservation of the natural 
1 
resources and protection of the environment. 
2 
The Authority may enter into joint ventures an such other cooperative arrange-
3 
ments with people's and non-governmental organizations to engage in projects designed 
4 
to promote and maintain ecological balance, it may also provide assistance, financial or 
5 
technical, to such people's and non-governmental organizations for environmental pro-
6 
jects to be implemented within the country. 
7 
SEC. 38. National Environment Protection Fund (NEPFund). - There is hereby 
8 
created a National Environment Protection Fund (NEPFund) to be administered by the 
9 
Authority. To finance the said Fund, the following shall be imposed: 
10 
(a)  A national environment protection fee in an amount equivalent to ten percent 
11 
(10%) of the total fees charged, but not more than One hundred pesos (P100.00) for every 
12 
business or non-business permit or license issued by the government. 
13 
(b)  An allocation equivalent to ten percent (10%) of the total unclaimed bank 
14 
balances escheated in favor of the State under Republic Act No. 3936, as amended (Un-
15 
claimed Balances Law). 
16 
Proceeds from penalties prescribed in natural resource conservation and environ-
17 
mental protection laws and other penalties imposed by the Authority shall also accrue to 
18 
the NEPFund; 
19 
The NEPFund may be augmented by grants, subsidies, and donations from other 
20 
government sources or provate grantors or donors; and 
21 
The NEPFund shall be administered for the purpose of financing adequate, suit-
22 
able and appropriate measures to promote natural resource conservation and improve en-
23 
vironmental quality. 
24 
 
25 
Chapter VIII 
26 
Final Provisions 
27 
 
28 
SEC. 39. Appropriations. - To carry out the provisions of this Act, there is hereby 
29 
appropriated, from funds in the national treasury not otherwise appropriated, the sum of 
30 
Two hundred million pesos (P2,000,000,000.00) as initial capital of the Authority. The 
31 
succeeding appropriations for the balance of the Authority's capital shall be included in 
32 
the annual General Appropriations Act for the fiscal years immediately following the ef-
33 
fectivity of this Act. 
34 


 
15 
SEC. 40. Transitory Provisions. - All offices, bureaus, agencies and divisions 
1 
herein mentioned to be absorbed by the Authority shall cease, and their functions, includ-
2 
ing their appropriations, funds, records, equipment, facilities, rights, other assets and per-
3 
sonnel shall be transferred to the Authority within 120 days after the effectivity of this 
4 
Act. Its liabilities, if any, shall be treated in accordance with the government auditing 
5 
code and other pertinent laws, rules and regulations. 
6 
Its personnel whose positions are not included in the Authority's structure and 
7 
staffing pattern shall be deemed separated from the service and shall be entitled to receive 
8 
such benefits authorized under existing laws, rules and regulations. 
9 
SEC. 41. Dissolution of the Laguna Lake Development Authority. - The Laguna 
10 
Lake Development Authority, created under Republic Act No. 4850, as amended, shall be 
11 
dissolved within one (1) year from the effectivity of this Act, in as much as it exercises 
12 
the same functions as the Authority. Provided, that the LLDA shall continue to exist as 
13 
body corporate for three (3) years after dissolution for the purposes of prosecuting or de-
14 
fending suits by or against it and enabling it to settle and close its affairs, to dispose and 
15 
convey its property and to distribute its assets, but not for the purpose of continuing the 
16 
business for which it was established. 
17 
Nevertheless, all government interests in the LLDA shall immediately accrue to 
18 
the Authority, which shall exercise all the rights of the Government as stockholder of the 
19 
LLDA. All assets distributable to the Government as a result of the dissolution shall ac-
20 
crue to the Authority. 
21 
SEC. 42. Repealing Clause. - All acts, decrees, general orders, letters of instruc-
22 
tion, regulations and circulars, or parts thereof inconsistent with any provisions of this 
23 
Act are hereby repealed or modified accordingly. 
24 
SEC. 43. Separability Clause. - If, for any cause, any part of this Act is declared 
25 
unconstitutional, the rest of the provisions shall remain in force and effect. 
26 
SEC. 44. Effectivity. - This Act shall take effect upon approval. 
27 
 
28 
Approved, 
29 
 
30