Republic of the Philippines
House of Representatives
Quezon City

House Bill No. __ 861

INTRODUCED BY REPRESENTATIVE LAWRENCE LEMUEL H. FORTUN

EXPLANATORY NOTE

an archipelagic nation has a rich marine life which is constantly
threatened from various pollutants, Wastes and polluted effluents from ships are sources
of threats to our environment and eco system which needs to be addressed.

The Presidential Decree 979, otherwise entitled Marine Pollution Decree of 1976, was
promulgated in 1976 when the polluted effluents and wastes from ships were not yet
ostensibly pervasive. P.D. 979 is viewed as too general in its implementing regulation or
standard and no longer responsive to the prevalent threat of pollution from ships.

This measure seeks to remedy the shortcomings of the 1976 Presidential Decree and
more significantly, seeks to implement the provision of the MARPOL 73/78, otherwise
known as the International Convention for the Prevention of Pollution from Ships 1973,
as amended by the Protocol of 1978.

for the identification of harmful
ances including emi noxious liquid substances and other harmful
ances. It also secks to set emission standards for ships plying Philippine seas. ‘The
bill likewise seeks to establish a Marine Pollution Adjudication Board that has quasi-
judicial powers and exclusive jurisdiction over all marine pollution

A version of this measure, authored by Reps. Maria Evita Arago and Irvin Aleala, had
f passage into a law. It is prayed that in the
finally passed and approved into a law.

16th Congress,

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



REPUBLIC OF THE PHILIPPINES.
HOUSE OF REPRESENTATIVES

Sixteenth Congress
First Regular Session

H.B.No. 861i

TEMUEL H. FORTUN

~ INTRODUCED BY REP. LAWRENC

AN ACT
TO PREVENT AND CONTROL POLLUTION FROM SHIPS, PROVIDE PENALTIES
THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I1GENERAL PROVISIONS
SI

2013
SEC. 2. Declaration of Policy. ~ The State shall hereby prevent and control pollution resulting from

. Short Title. ~ This Act shall be known as the “Prevention of Pollution from Ships Act of

the operations of ships in order to protect and advance the right of the people to a balanced and healthful
ecology in accord with the rhythm and harmony of nature.
It shall likewise be the policy of the State to implement the Convention as it is herein defined,

including its amendments and protocols that have been ratified by the Philippines.

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

(a) Atmospheric discharges or emissions from ships refer to any deliberate discharge or emission
of ozone depleting substances, nitrogen oxides, sulfur oxides and volatile organic compounds when such
discharges do not meet the requirements of the Convention.

(b) Chemical tanker refers to a ship constructed or adapted for the carriage in bulk of any liquid
product listed in the International Bulk Chemical Code or any noxious liquid substance.

(c) Coastal state refers to the relationship of the Philippines to a foreign-flagged vessel
traversing Philippine waters and its corollary right to exercise jurisdiction and regulatory control over
such vessel.

(d) Convention refers to:

(1) The International Convention for the Prevention of Pollution from Ships 1973, as amended by
the Protocol of 1978 or MARPOL 73/78;

(2) Protocol | and I] of MARPOL 73/78;

(3) Annexes I, II, III, IV, V and VI, their relevant appendices, any technical code referred to, as
well as any amendment to any of these documents which may enter into force in accordance with the
procedure referred to in Article 16 of MARPOL 73/78;

(4) Any subsequent protocol ofand amendment to the Convention which the Philippine
Government may ratify necessary to advance the purposes of this Act;

(5) Any mandatory Code referred to in the Convention or any subsequent protocol to the
Convention which the Philippine Government may ratify or any amendment which may enter into force
in accordance with Article 16 of the Convention.

(c) Department refers to the Department of Transportation and Communicatior

() Discharge refers to any release, however caused, of harmful substances from a ship,
including any escape, disposal, spilling, leaking, pumping, emitting or emptying of such substances,
except:

(1) Release of harmful substances directly arising from the exploration, exploitation and
associated off-shore processing of sea-bed mineral resources; or

(2) Release of harmful substances for purposes of legitimate scientific research into pollution
abatement or control.

(g) Dirty ballast refers to water carried in the cargo tank.

a


(h) Flag state refers to the relationship of the Philippines to vessels registered under its flag
and the corollary right to exercise jurisdiction and regulatory control over these vessels.

(i) Foreign-flagged ship refers to any ship registered in another State or authorized to fly its
flag, whether or not it is a State party to MARPOL 73/78, when found in any of the ports, terminal
facilities or waters within the jurisdiction or sovereignty of the Philippines.

Gj) Garbage refers to all kinds of victual, domestic and operational waste, excluding fresh fish
and parts thereof, generated during the normal operation of the ship and liable to be disposed of
continuously or periodically.

(k) Harmful substance in package form refers to those substances which are identified as
marine pollutants in the International Maritime Dangerous Goods (IMDG) Code and are held in forms of
containment specified for harmful substances in the IMDG Code. If not otherwise identified in the IMDG
Code, harmful substances in package form shall include substances identified in accordance with the
following criteria as provided in the Convention:

(1) Those which are bio-accumulated to a significant extent and known to produce a hazard to
aquatic life or to human health; or

(2) Those which are bio-accumulated with attendant risk to aquatic organisms or to human health
with a short retention of the order of one (1) week or less; or

(3) Those which are highly toxic to aquatic life.

() Marine incident refers to an event involving the actual or probable discharge into the sea,
or emission into the atmosphere, of a harmful substance or effluents containing such a substance.

(m) Marine casualty refers to any accident or incident of navigation which results in producing a
harmful, deleterious or damaging effect upon the marine environment.

(n) Master refers to every person, except a pilot, having command or charge of any shi
including a boat captain.

(0) Noxious liquid substance refers to any substance identified as such under the relevant
chapter of the International Bulk Chemical Code or provisionally assessed as such by Annex II of the
Convention.

(p) Oil refers to petroleum in any form including crude oil, fuel oil, sludge, oil refuse and
refined products, other than petrochemicals which are classified as noxious liquid substances in
aecordance with Annex II of the Convention, and including substances listed as asphalt solutions,
gasoline blending stocks, oils, gasolines, jet fuels, distillates, gas oil and naphtha in accordance with
‘Appendix I of Annex I of the Convention.

(q) Oily mixture refers to a mixture with any oil content.

(8) Oil tanker refers to a ship constructed or adapted primarily to carry oil in bulk in its cargo
spaces and includes combination carriers or any other tanker when in fact carrying cargo or part of cargo
of oil in bulk.

(8) Other harmful substance refers to any substance other than oil, noxious liquid substances,
harmful substances in package form, garbage, sewage, which, if introduced into the sea, is liable to create
hazards to human health, to harm living resources and marine life, to damage amenities or to interfere
with other legitimate uses of the sea, and includes, but is not limited to, atmospheric discharges and other
substances identified as marine pollutants which may be subject to control pursuant to the provisions of
this Act and other relevant environmental laws of the Philippines.

(t) Owner refers to the person registered as the owner of the ship or who assumes the
operation of the ship, or, in the absence of registration, the person owning the ship or the bareboat
charterer of the ship, and, in the case of a ship owned by a State and operated by a company which in that
State is registered as the ship’s operator, “owner” shall include such State.

(u) Philippine ship refers to any ship registered under the laws of the Philippin
to fly its flag wherever the ship may be found.

(v) _ Philippine waters refer to the internal waters, archipelagic waters, territorial seas, waters
in the contiguous and exclusive economic zones.

(w) Plastics include, but shall not be limited to, synthetic ropes, synthetic fishing nets, plastic
garbage bags, incinerator ashes from plastic products which may contain toxic or heavy metal residues.

(x) Port state refers to the relationship of the Philippines to a foreign-flagged vessel which
may be found in any of its ports, terminal facilities or harbors and its corollary right to exercise
jurisdiction and regulatory control over such vessel.

(y) Secretary means the Secretary of the Department of Transportation and Communications.

(2) Sewage refers to:

(1) Drainage and other wastes from any form of toilets and urinals;

and entitled

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(2) Drainage from medical premises (dispensary, sick bay, etc.) via wash basins, wash tubs and
scuppers located in such premises;

(3) Drainage from spaces containing living animals; or

(4) Other waste waters when mixed with the drainages defined above.

(aa) Ship refers to a vessel of any type operating in the marine environment and includes pleasure
crafls, fishing vessels, hydrofoil boats, air-cushion vehicles, submersibles, floating craft, drilling
rigs and fixed or floating platforms.

(bb) Undue delay refers to a delay that is unreasonable and unnecessary in light of the particular
conditions of the ship, the ships cargo, destination and schedule, and in light of the purpose and
scope of the investigation, inspection or other cause for detaining the ship.

CHAPTER 2 SCOPE AND APPLICATION

SEC. 4. Scope and Application of this Act. — Unless otherwise specified herein, this Act shall apply to:

(a) _ All Philippine ships, wherever they may be found;

(b) All foreign-flagged ships in Philippine waters whether or not they are registered with State
parties to the Convention; and

(c) All other ships operating within the Philippine waters: Provided, That the provisions of
the Convention setting forth technical requirements that ships must meet which are inapplicable or
impractical in Philippine local setting may be suspended or equivalents prescribed therefor upon
determination by the Department, subject to public consultation: Provided, further, That nothing herein
shall prevent enactment of any law providing for standards, requirements or regulations higher than those
provided for by the Convention.

SEC. 5. Exemptions. ~ This Act shall not apply to warships and naval auxiliary ships: Provided,
‘That all government ships shall be exempted from the coverage of this Act during emergency response
cases: Provided, however, That the Department, through the Maritime Industry Authority (MARINA),
the Philippine Coast Guard (PCG), the Philippine Ports Authority (PPA) and other concerned agencies,
shall ensure that appropriate measures shall be adopted, not impairing the operational capabilities of such
ships, that such ship operates in a manner consistent, so far as is reasonable and practicable, with this
Act.

CHAPTER 3 EXERCISE OF JURISDICTION OVER SHIPS

SEC. 6. Powers and Functions of the Department. ~ The Department shall be the principal
government agency responsible for the overall implementation and enforcement of this Act and any
requirement of the Convention. For this purpose, the Department, through the Secretary, shall have the
following general powers and functions:

(@) Oversee the implementation of this Act and coordinate the efforts of concerned agencies

(b) Formulate a comprehensive program to prevent or minimize marine pollution from shi
coordination with the Department of Environment and Natural Resources (DENR), the Department of
Agriculture (DA), the Department of the Interior and Local Government (DILG), the Department of
Energy (DOE), port authorities and other relevant agencies and stakeholders;

(©) Constitute the Marine Pollution Adjudication Board (MPAB);

(d) Reorganize or streamline the functions of its different line, staff’ and attached authorities,
agencies or bureaus for purposes of the effective and efficient implementation of the provisions of this
Act; and

(©) _ Exercise such powers and perform such other functions as may be necessary to carry out
its duties and responsibilities under this Act.

SEC. 7. Powers and Functions of the Maritime Industry Authority The Maritime Industry
Authority (MARINA) shall have the sole and exclusive authority and responsibility to ensure that

2.


environmental and pollution regulations and standards for the construction and equipment of Philippine
vessels, before they are allowed to fly the Philippine flag, and/or as part of their registration, are
complied with. For this purpose, the MARINA shall have the following duties and functions:

(a) Ensure that all Philippine ships are constructed and equipped with any fitting, material,
appliance or apparatus deemed appropriate and eflective for the prevention of any discharge or emission
of harmful substances in consonance with the requirements of the Convention;

(b) Survey all Philippine ships for purposes of the provisions of the immediately preceding
paragraph, which function may be delegated to MARINA-recognized organizations through a deputation
process to be formulated pursuant to this Act: Provided, That, except for direct replacement, no change in
the ship’s structure, equipment, fittings, arrangements and materials shall be made without the approval
of the MARINA;

(c) _ Issue the required statutory certificates to all Philippine ships;

(@) Review and revise, whenever appropriate, the existing system of certification, survey,
inspection and monitoring of ships, with respect to pollution prevention to ensure efficiency and
transparency, consistent with the overall management of the maritime sector and in accordance with the
requirements of the Convention;

(c) Conduct surveys and issue certificates or endorsements to foreign ships registered with
another State party, if so requested by a State which is a party to the Convention;

(f) Require ships to keep and maintain relevant record books in accordance with the
Convention;

(g) Suspend, withdraw or revoke any certificate it may have issued to any Philippine ship
found not compliant with this Act and with rules and regulations promulgated therefor;

(h) Hear and adjudicate any violation of rules and regulations of the MARINA issued pursuant to
this Act;

(i) Impose such fines and penalties on Philippine ships which shall fail to comply with the
requirements of this Act and its implementing rules and regulations;

(i) Aceredit, appoint and authorize recognized organizations to act on its behalf and, for this
purpose, execute the requisite memorandum of agreement defining the extent of powers that may be
exereised by such recognized organizations including, but not limited to, the following:

(1) Perform and conduct statutory surveys on Philippine ships

(2) Require repairs on a Philippine ship pursuant to findings res

(3) Carry out surveys requested by port state authorities; and

(4) Withdraw any statutory certificates if corrective action is not taken by the Philippine ships.

(k) Provide the International Maritime Organization (IMO) with a list of recognized organizations
authorized to act on behalf of the Philippines together with the extent of their powers, the specific
responsibilities they are empowered to perform and the conditions of the authority delegated to them;

(1) Impose, fix, collect and receive, in accordance with the duly approved schedules, such fees
necessary for the survey and certification of ships pursuant to this Act. Such fees shall be imposed and
collected in order to recover the cost for rendering the service and shall not be used in order to impose a
penalty: Provided, That excessive fees, multiple fees and duplicative fees shall at all times be avoided;

(m) Issue such rules and regulations necessary to implement the provisions of this Act:
Provided, That such rules and regulations shall be in consonance with the Convention and shall not
change ot in any way amend or be contrary to the intent and purposes of this Act;

(n) Provide its officers and personnel with adequate training and continuing education to ensure
an efficient and professional pollution regulatory machinery;

(0) Impose and collect fees and charges in connection with the performance of its functions
under this Act; all fees and charges shall accrue to the Marine Environmental Management Fund
(MEMF) established under Section 42 of this Act; such fees shall be imposed and collected in order to
recover the cost for rendering the service and shall not be used in order to impose a penalty: Provided,
That excessive fees, multiple fees and duplicative fees shall at all times be avoided; and

(p) Exercise such powers and perform such other functions as may be necessary to carry out its
duties and responsibilities under this Act.

ting from port state inspection;

SEC. 8. Powers and Functions of the Philippine Coast Guard.
— Unless otherwise provided under Section 9 of this Act. the Philippine Coast Guard (PCG) shall have

the sole and exclusive authority and responsibility to enforce environmental and pollution regulations and



standards to all ships which may be operating within Philippine waters, including ports, terminal facilities
‘or harbors. It shall include the authority to board and inspect ships to ensure compliance with such
regulations and standards.

For this purpose, the PCG shall have the following duties and functions:

(a) Ensure that all ships are operated and certificated in accordance with the requirements of
the Convention;

(b) Inspect the certificates and record books required of any ship pursuant to Section 12 of this
Act;

(©) Conduct a physical inspection of the ship if there should be clear grounds for believing
that the condition of the ship or its equipment does not correspond substantially with what is stated in the
ship's certificates;

(4) Investigate any complaint involving the alleged violation of the Convention committed by @
ship regardless of source of the complaint or the location of the violation and request the submission of
evidence which the complainant may have regarding the alleged violation;

(ec) Request the assistance of any other State whose cooperation may be useful to the
investigation against a ship;

(f) Detain a ship pursuant to Section 16 of this Act;

(g) Require a ship to proceed to the nearest repair yard and ensure that the ship does not leave
until it can proceed to sea without posing an unreasonable threat or harm to ‘the marine environment;

(h) Initiate proceedings against any person for violation of this Act when sufficient evidence
exists with respect to the alleged violation;

(0) Inform the complainant and the International Maritime Organization (IMO) of the results
of the investigation and any action taken against the ship operator of the Philippine ship in respect of any
alleged violation;

(i) Deny entry of a foreign-flagged ship to any Philippine port or terminal facility if it fails to
comply with the requirements of the Convention;

(k) Coordinate with, and inform, the diplomatic representative of the State, or the flag State
administration, of any violation of the foreign ship and any action taken against the ship;

(ly Inspect, verify and investigate a ship if it has discharged any harmful substance into the
marine environment if:

(1) Ithas reasonable grounds to believe that a discharge has occurred in Philippine waters;

(2) It receives a report from another coastal State; or;

(3) It receives a request from the flag State;

(m) Forward the report of any violation committed by the ship with respect to any discharge of
harmful substances into the marine environment to the ship’s flag state administration together with any
evidence it may have;

(n) Immediately inform any affected coastal State of the discharge;

(0) Inform the flag State administration of the foreign ship of the alleged violation and furnish it
with such information and evidence to show that a violation has occurred;

(p) Ensure that the ship is not unduly delayed or detained;

(q) Order into port any ship found in the territorial seas if there are clear grounds to believe that
the ship has discharged harmful substances into the marine environment;

(t) Establish procedures for reporting incidents involving any actual or probable discharge or
emission which may be in violation of this Act and of the requirement of the Convention consistent with
the reporting requirements under this Act;

(s) Require all ships and aircrafts registered under the Philippine flag to immediately report
any marine casualty which they witnessed while navigating;

(t) Upon inquiry or investigation, cause or recommend regulatory or other appropriate actions
to be taken in connection with any violation of the provisions of this Act;

(u) Cooperate with the government of other States which are members of international
organizations on the prevention of pollution from ships concerning the detection of violations and
enforcement of this Act using all appropriate and practicable measures of detection and environmental
monitoring, adequate procedures for reporting and accumulation of evidence;

(v) Provide its officers and personnel with adequate training and continuing education to ensure
an efficient and professional pollution regulatory machinery;

(w) Adopt continuing information campaign on marine resources protection aimed at
developing public awareness of the health hazards and other adverse effects of ship pollution;

5



(x) Administer the MEMF;

(y) Issue such rules and regulations necessary to implement the provisions of this Act
Provided, That such rules and regulations shall be in consonance with the Convention and shall not
change or in any way amend or be contrary to the intent and purposes of this Act; and

(2 Exercise such powers and perform such other functions as may be necessary to carry out
its duties and responsibilities under this Act.

SEC, 9. Role of the Department of Environment and Natural Resources (DENR). ~ For purposes of

this Act, the DENR shall have the following powers and functions:

(a) Provide technical assistance on pollution prevention to the concerned government
agencies in the implementation of this Act;

(b) Establish guidelines for the identification of harmful substances in packaged form in
accordance with the guidelines and listings provided by the IMDG Code in coordination with the PPA
and other port authorities; and

(c) Set emission standards for ships in accordance with the requirements of the Convention,

For floating craft, drilling rigs and fixed or floating platforms, and vessels which primarily operate
or undertake business, commercial or industrial activities while anchored, the DENR, in coordination
with the PCG, shall enforce the applicable provisions of Presidential Decree No. 1586 and Republic Act
No. 9275.

‘The DENR, in coordination with the PC
being transported by ships in the country, and prevent the disposal thereof and/or the entry of ships

shall likewise monitor hazardous and radioactive wastes

carrying the same.

CHAPTER 4 PREVENTION OF POLLUTION FROM SHIPS
10. Prohibition of Discharge or Emission of Harmful Substances. ~ It shall be unlawful for

any person to discharge or emit the following substances from any Philippine ship, or from any other ship
while it is within Philippine waters:

(a) Oil, whether carried as cargo or as bunk

(b) Oily mixture, whether generated from cargo operations or from machinery spaces;

(c) Noxious liquid substances carried in bulk;

(d) Harmful substances in packaged form;

(e) Sewage;

(f) Garbage; and

(g) Other harmful substances, whether generated during the operation of the ship or not, The
provisions of this section shall not apply in the following cases:

(1) The discharge or emission is necessary for the purpose of securing the safety of a ship and
those on board or saving life at sea; or

(2) The discharge results from unintentional damage to the ship or its equipment, and all
reasonable precautions have been taken after the occurrence of the damage or the discovery of the
discharge for the purpose of preventing or minimizing the discharge, unless the master, owner or agent of
the ship acted either with intent to cause damage or recklessly and with knowledge that damage would
probably result; or

(3) The discharge is for the purpose of combating sp
the damage from pollution.

i¢ pollution incidents in order to minimize

For this purpose, the Department shall promulgate rules and regulations for the purpose of giving
effect to the immediately preceding paragraph as regards its application in general or with respect to
particular classes of ships, or in relation to particular descriptions of harmful substances, or to the
disposal or discharge thereof in prescribed circumstances. or in relation to particular areas of the sea in
consonance with the requirements of the Convention.

SEC. 11. Immediate Report of Discharges of Harmful Substances.

6


— If any actual or probable discharge of any harmful substance occurs from any Philippine ship into any
part of the sea or atmosphere, the master shall immediately report the incident to the nearest affected
coastal State and to the Department.

If any actual or probable discharge of any harmful substance occurs from any Philippine ship or
foreign-flagged s!
report the occurrence to the PCG, The PCG shall immediately inform any affected coastal State, If a

while it is operating in Philippine waters, the master of the ship shall immediately

foreign-flagged ship is involved, the PCG shall immediately inform the flag State of the ship.
If the master of the ship fails to report the occurrence, or the discharge occurs in circumstances
where the ship has been abandoned, the owner, charterer, manager and operator of the ship or an agent of

the owner, charterer, manager and operator of the ship shall without delay, report the occurrences to the

Department.

SEC.12. Record Books. ~ Philippine ships and all ships within Philippine waters shall maintain on
board record books in the English language, whether as part of their official logbook or not. For this
purpose:

(a) Every oil tanker which is one hundred fifty (150) gross tonnage or more and every ship,
other than an oil tanker which is four hundred

(400) gross tonnage or more shall be provided with, and shall be required to maintain, an Oil
Report Book Part I for Machinery Space Operations in accordance with the requirements of the
Convention;

(b) Every oil tanker which is one hundred fifty (150) gross tonnage or more shall be provided
with, and shall be required to maintain, an Oil Record Book Part II for Cargo/Ballast Operations in
accordance with the requirements of the Convention;

(c)__ Every chemical tanker shall be provided with, and shall be required to maintain, a Cargo
Record Book in accordance with the requirements of the Convention; and
(d) Every ship which is four hundred (400) gross tonnage or more and every ship which is certified to
carry fifteen (15) persons or more shall be provided with, and shall be required to maintain, a Garbage
Record Book in accordance with the requirements of the Convention.

SEC. 13. Reception Facilities. — Port authorities shall ensure that public and private ports and
terminal ports in the Philippines shall be appropriately and adequately provided with facilities to meet the
needs of ships without causing such ships undue delay in the reception of its oily residues, oily mixtures,
dirty ballast, tank washing water, noxious liquid substances, sewage, garbage, ozone depleting substances
and equipment containing such substances and for cleaning of exhaust gases in consonance with this Act
and the requirements of the Convention.

For this purpose, port authorities shall:

(a) determine and establish the most effective and efficient means for meeting the internationally-

accepted requirements with respect to r

eption facilities in public and private ports;

(b) formulate and implement integrated waste management system for the use and operation of
reception and treatment facilities; and

(©) coordinate with the DENR and concerned local government units (LGUs) on the proper
handling and disposal of wastes collected at ports.

Port authorities may accredit or enter into agreements with private entities in relation to the

establishment and operation of reception and treatment facilities.

SEC. 14, Use of Reception Facilities. ~ All ships entering or availing the services of ports,

terminals and repair ports shall use reception facilities established pursuant to the immediately preceding
section, subject to the integrated waste management system to be established by port authorities.

7


SEC. 15. Denial of Entry. — A foreign-flagged ship believed to have probably violated or would
violate the requirements of this Act, or rules and regulations promulgated therefor, may be denied entry
to any port in the Philippines

SEC. 16. Detention of Ships. ~ Ships shall be detained in any of the following cases:

(a) The fine or fines imposed on ship, owner or operator of the ship pursuant to Chapter 5 of
this Act, except those imposed for violations of administrative regulations under Sections 27, 28 and 29
of this Act, have not been paid;

(b) The condition of the ship does not substantially correspond with what is stated in the ship’s
certificates;

(c) The ship does not hold valid ship’s certificates;

(d)_ There are reasonable or probable grounds to believe that:

(1) The ship incurred a pollution cost liability under Section 33 of this Act;

(2) The ship violated any of the requirements of this Act or rules and regulations promulgated
therefore; and

(3) Theship caused harm or damage or exhibited a reasonable environmental threat to the marine
environment.

A ship detained under paragraph (4) of this section may be released after the owner of the ship
posts with the MPAB an adequate cash bond, insurance guaranty, or protection indemnity guaranty or a
combination thereof, as approved by the Board, to satisfy the liability of the owner, master or agent of the
ship under this Act.

CHAPTER 5 FINES, PENALTIES AND LIABILI1
SEC. 17. Imposition of Fines, Penalties and Liabilities, - Except for fines and penalties for
violations of administrative regulations under Sections 27, 28 and 29 of this Act, all fines and penalties

imposed for violations of the provisions of this Chapter shall be imposed by the MPAB established
pursuant to Section 35 of this Act.

For this purpose, an appropriate fine rating system shall be established by the said Board, taking
into consideration degree of willfulness, negligence or recalcitrance of the master, owner or operator of

the ship, their history of noncompliance and the gravity of the damage caused by the ship to the

environment.

SEC. 18. Discharge or Emission of Harmful Substances. — A ship which is found to have
discharged or emitted harmful substances under Section 10 of this Act shall be liable to the following
fines:

(a) In the case of a Philippine ship, unless the discharge or emission is committed and
appropriately fined in other States” jurisdiction:

(1) or oil or oily mixture under paragraphs (a) and (b) of Section 10 of this Act — not less than
‘Twenty thousand pesos (Php20,000.00) but not more than Ten million pesos (Php10,000,000.00);

(2) For noxious liquid substances or harmful substances in packaged form under paragraphs (c)
and (d) of Section 10 of this Act — not less than Ten thousand pesos (Php10,000.00) but not more than
Ten million pesos (Php10,000,000.00);

(3) For sewage or garbage under paragraphs (e) and (f) of Section 10 of this Act — not less than
Five thousand pesos (Php5,000.00) but not more than Two million pesos (Php2,000,000.00); and

(4) For other harmful substances as defined in this Act — not less than Three thousand pesos
(Php3,000.00) but not more than Ten million pesos (Php10,000,000.00).

(b) In the case of a foreign-flagged ship:

(1) For oil or oily mixture under paragraphs (a) and (b) of Section 10 of this Act — not less than
Five thousand US dollars (US$5,000) but not more than Five million US dollars (US$5,000,000), or its
equivalent in Philippine pesos:



(2) For noxious liquid substances or harmful substances in packaged form under paragraphs (c)
and (d) of Section 10 of this Act — not less than Three thousand US dollars (US$3,000.00) but not more
than Three million US dollars (US$3,000,000.00), or its equivalent in Philippine pesos;

(3) For sewage or garbage under paragraphs (e) and (f) of Section 10 of this Act ~ not less than
One thousand US dollars (US$1,000.00) but not more than One million US dollars (US$1,000,000.00),
or its equivalent in Philippine pesos.

(4) For other harmful substances as defined in this Act ~ not less than Three thousand US Dollars
(US$3,000.00) but not more than Five million US dollars (US$5,000,000.00), or its equivalent in
Philippine pesos; and

Any person directly or negligently responsible for the discharge or emission into Philippine waters
or atmosphere shall be liable to a fine of not less than Five thousand US dollars (US$5,000.00) but not
more than Five million pesos (Php5,000,000.00) and, whenever appropriate, to the costs of any measure
reasonably taken in removing or eliminating the discharged or emitted substances.

SEC. 19. Failure to Maintain Record Books. ~ (a) A ship which operates or is allowed to operate
without record books required under Section 12 of this Act or fails to maintain on board said record

books shall be liable to a fine of Two hundred thousand pesos (Php200,000.00).
(b) Any person who fails to comply with the provisions of Section 12 of this Act or the rules and
regulations promulgated therefor shall be liable to a fine of not less than Five thousand pesos
(Php5,000.00) but not more than Two hundred thousand pesos (Php200,000.00).
(c) Any person who makes any false or misleading entry in said record books carried or kept
under Section 12 of this Act shall be liable to a fine of not less than Ten thousand pesos (Php10,000.00)
but not more than Five hundred thousand pesos (Php500,000.00),

SEC. 20. Refusal to Use Reception Facilities. ~ A ship which unjustifiably refuses to use reception
facilities shall be liable for a fine of not less than Ten thousand pesos (Php10,000.00) but not more than
Five hundred thousand pesos (Php500,000.00): Provided, That disposal of oil in reception facilities shall

be required upon determination by the PCG.

SEC. 21. Absence of and Noncompliance with Shipboard Garbage Management. — If a ship
operates without a shipboard garbage management plan as required under the Convention or fails to
operate in accordance with such plan, it shall be liable for a fine of not less than Ten thousand pesos
(Php10,000.00) but not more than Two hundred thousand pesos (Php200,000.00).

SEC. 22. Unauthorized Change in the Ship's Structure, Equipment, Fittings, Arrangements and
Materials. ~ Unless authorized under this Act or the Convention, any ship owner who made, or caused
the making of changes in the structure, equipment, fittings, arrangements and materials of the ship
without the approval of the MARINA shall be punished by a fine of not less than Ten thousand pesos
(Php 10,000.00) but not more than One hundred thousand Pesos (Php100,000.00).

SEC. 23. Operating Without the Required Certification. — A ship which is operated or is allowed to
operate without the certification required pursuant to this Act or the Convention shall be detained and
shall be liable to a fine of not less than Ten thousand pesos (Php10,000.00) but not more than Five
hundred thousand pesos (Php500,000.00).

SEC. 24. Violation of Detention Order. — A ship which proceeds to sea in violation of a detention
order made pursuant to Section 16 hereof shalll be liable to the following fines:
(a) Philippine ship — not less than Ten thousand pesos (Php!0,000.00) but not more than One

2


million pesos (Php1,000,000.00); and
(b) Foreign-flagged ship ~ not less than Five thousand US dollars (US $5,000.00) but not more
than Five million U$ dollars (US $5,000,000.00), or its equivalent in Philippine pesos.

SEC. 25.
substances in violation of Section 10 of this Act, it shall be held liable for the fines stipulated under
Section 18 and shall be furthermore liable to an additional fine of not less than Ten thousand pesos
(Php10,000.00) but not more than Two hundred thousand pesos (Php200,000.00) for every day or part
thereof during which the offense continues.

SEC. 26. Obstruction of Investigation. ~ Any person who shall, without justifiable reason, obstruct

ntinuing Violation. — Where a ship continuously discharges or emits harmful

or hamper the conduct of an investigation of a violation of this Act shall be liable to pay a fine of not less
than Ten thousand pesos (Php10,000.00) but not more than One hundred thousand pesos
(Php100,000.00)..

SE
of enforcing any provision of this Act, who is found guilty of gross negligence of duty, shall be dismissed

27. Neglect of Duty. ~ Any government official or employee charged with the responsibility

from the service with prejudice to reinstatement. Neglect of duty shall be prosecuted in accordance with
existing laws

SEC. 28. Connivance in Violation of this Act. ~ Any government official or employee charged with
the responsibility of enforcing and/or implementing any provision of this Act who connives with the ship
owner, master or operator of a ship or any person to violate, or permits the commission of, any violation
of this Act shall be dismissed from the service and shall be jointly and severally liable with any such

person found to be liable for the fine imposed pursuant to this Act.

SI acts in

violation of rules and regulations
are otherwise covered under Sections 19 to 28 hereof, shall be liable to the following fines:

(a) First violation — a fine of not less than One thousand pesos (Php1,000.00) but not more
than One hundred thousand pesos (Php100,000.00);

(b) Second violation ~ a fine more than One hundred thousand pesos (Php100,000.00) but not
more than Two hundred thousand pesos (Php200,000.00); and

(c) Third violation —a fine more than Two hundred thousand pesos (Php200,000.00) but not
more than One million pesos (Php1,000,000.00) and the suspension of vessel safety certificate for six (6)
months to one (1) year.

2. 29. Violations of Administrative Regulations, ~ Any person who commits or omits
ued by concerned agencies pursuant to this Act, unless the violations

The concerned agency shall promulgate rules and regulations for the summary imposition of
administrative sanctions, subject to due process, for failure to comply with any order, decision, rules or
regulations of the Department issued pursuant to this Act. All administrative fines imposed by the
concerned agency pursuant to this Act shall accrue to the MEMF.

SEC. 30. Intentional Violation. — In case the discharge or emission of harmful substances or toxic
pollutants identified pursuant to Republic Act No. 6969, otherwise known as the “Toxic Substances and
Hazardous and Nuclear Wastes Control Act of 1990”, in toxic amounts or in violation of Section 10 of
this Act is deliberate and willful, the offender, without prejudice to the civil liability of the offender, shall
be liable to the following fines or imprisonment of not less than six (6) years but not more than twelve
(12) years, or both, at the discretion of the court:

(a) Philippine ship — not less than Fifty thousand pesos (Php50,000.00) but not more than

10


Twenty million pesos (Php20,000,000.00); and
(b) Foreign-flagged ship — not less than Fifty thousand US dollars (US $50,000.00) but not more
than Fight million US dollars (US $8,000,000.00), or its equivalent in Philippine Pesos.

SEC. 31. Automatic Adjustment of Penalties and Fines. —'The fines prescribed in this Act shall be
tivity of this Act.

lly increased by ten percent (10%) every three (3) years from the et

~ In the event harmful substances under Section 10 of this Act are

32. Clean-up Operation’
discharged or emitted from any ship into Philippine waters or into any part of the sea or waters outside

Philippine waters but such substances subsequently flowed or drifted into Philippine waters, or into the

Philippine atmosphere, the PCG, in coordination with other agencies concerned, shall be responsible for
the cleanup and containment of discharged substances, and the prevention or mitigation of the resulting
damage to the environment, human health, tourist and fishing industries, public and private properties:
Provided, The necessary initial cleanup and containment shall be made by the owner of the ship which

discharged or caused the discharge of such harmful substances.

33. Cost Liability for the Discharge or Emission of Harmful Substances. ~ The owner of the

ion 32 hereof shall be primarily responsible

ship liable for the harge of harmful substances under $

to pay for the following pollution costs:
(a) Reasonable expenses that the PCG and other agencies concerned may reasonably
undertake or has undertaken pursuant to the immediately preceding section; and
(b) Environmental damages and/or other reasonable measures taken for environmental
rehabilitation,
In case the responsibility for the above pollution cost liability falls on two (2) or more shij
liability of each of the owners thereof cannot be reasonably distinguished from that of the other, each of

ind the

the owners shall be jointly and severally liable for the whole amount of the cost.
Republic Act No, 9483, otherwise known as the “Oil Pollution Compensation Act of 200°
govern the civil liability for the discharge of oil, including the oily mixture, discharged as part of the

incident under the said Act.

Reimbursement of the cost incurred shall be made to the MEMF or to such other funds where

disbursements were sourced.

SEC. 34. Informer's Reward to Persons Instrumental in the Discovery of Violations of this Act. —
Any person with the exception of the Department, the DENR, the LGUs, the MARINA, the PCG or port
authority. offi
voluntarily gives definite and sworn information, not yet in the pos:

is or employees or their relatives within the sixth degree of consanguinity, who
sion of the MARINA or the PCG,
leading to the discovery of the violation of this Act, thereby resulting in the imposition of fines and/or

fees or conviction of the guilty party and/or the imposition of any of the fines or penalties, shall be
rewarded in a sum equivalent to ten percent (10%) of the fines imposed and/or fees recovered

CHAPT

6 MARINE POLLUTION ADJUDICATION BOARD

SEC. 35. Marine Pollution Adjudication Board. ~ There is hereby constituted a Marine Pollution
Adjudication Board (MPAB) under the Office of the Secretary vested with quasi-judicial powers which
the Board shall have sole and exclusive jurisdiction over all marine pollution cases as provided for in
Section 17 of this Act. The Board shall be composed of the following members

(a) The Secretary of the Department, or his duly authorized permanent representative, as

pee


Chairman;
(b) The Secretary of the DENR, or his duly authorized permanent representative;
(c)__ The Administrator of the MARINA, or his duly authorized permanent representative:
(d) The Commandant of the PCG, or his duly authorized permanent representative:
(e) The General Manager of the PPA, or his duly authorized permanent representative;
(f) _ Appermanent representative endorsed by the Association of Masters and Mates;
(g) A permanent representative endorsed by the Marine Engineers Association; and

(h) A member of the Philippine Bar duly endorsed by the Integrated Bar of the Philippines (IBP).
The grant of honoraria to members of the MPAB shall be subject to existing laws, accounting and
auditing rules and regulations.

SEC. 36. Powers and Functions. —‘The MPAB shall have the following powers and functions:

(a) To hear and decide cases falling under their jurisdiction pursuant to Section 17 of this Act;

(b) To conduct hearings on all matters within its jurisdiction, proceed to hear and determine the
disputes in the absence of any party thereto who has been summoned or served with notice to appear,
conduct its proceedings or any part thereof in public or in private, adjourn its hearings at any time and
place, refer technical matters or accounts to an expert and to accept the experts’ reports thereon as
evidence after hearing of the parties upon due notice, direct parties to be joined in or excluded from the
proceedings, correct, amend or waive any error, defect or irregularity, whether in substance or in form,
give all such directions as it may deem necessary or expedient in the determination of the dispute before
it and dismiss the dispute as part thereof, where it is trivial or where further proceedings by the
Commission are not necessary or desirable;

(c) To promulgate and adopt its own rules on pleading, practice and in the adjudication of
pollution cases coming from ship. It shall not be bound by technical rules of procedure and evidence but
shall proceed to hear and decide all cases, disputes or controversies in a most expeditious manner,
employing all reasonable means to ascertain the facts of every case in accordance with justice and equity
and the merits of the case;

(d) To summon witnesses, administer oaths, take testimony, require submission of reports,
compel the production of books and documents and answers to interrogatories and issue subpoena ad
testificandum and subpoena duces tecum and to enforce its writs through sheriffs or other duly deputized
officers;

(c) To punish direct and indirect contempt in the same manner and subject to the same
penalties as provided in the Rules of Court;

(8 To enjoin any or all acts involving or arising from any case pending before it which, if not
restrained forthwith, may cause grave or irreparable damage to any of the parties to the case or seriously
affect social or economic stability;

(g) To issue orders and decisions to compel compliance with the provisions of this Act and
the Convention and issuances or decisions of the MPAB;

(h) To deputize in writing or request assistance of appropriate government agencies or
instrumentalities for the purpose of enforcing its decisions; and

(i) To issue an ex parte order directing the discontinuance of discharge of substances that
cause marine pollution, or the temporary suspension or cessation of operation of the equipment, project
or activity and other acts causing environmental degradation, generating such pollutants or wastes,
without the necessity of a previous public hearing: Provided, That such ex parte order shall be issued
only in case of immediate threat to life or property, public health, safety or welfare or to animal or plant
life, or exceeds the allowable environmental standards. The ex parte order shall be immediately
executory and shall remain in force and effect until the same is modified or lifted by the MPAB.

SEC. 37. Finality of Determination. ~ Any case or controversy before the MPAB shall be decided
by majority of all its members within thirty (30) days after it is submitted for resolution. Only one (1)
motion for reconsideration shall be allowed. Unless an appeal is perfected and a cash bond equivalent to
the

.e imposed is deposited, any order, decision or ruling issued by the MPAB shall be final and

executory.

SEC. 38. Appeals. — Any decision, order or judgment of the MPAB may be appealed to the Court of
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Appeals by certiorari within fifteen (15) days from receipt of a copy thereof: Provided, That cease and

desist orders shall be immediately executory.

CHAPTER 7 MISCELLANEOUS PROVISIONS
39. Ship Pollution Prevention Program. ~ The Department, in coordination with concerned

agencies and stakeholders, shall establish a Prevention of Ship Pollution Program to enhance government
implementation of this Act particularly on:
(a) awareness building and capacity building;
(b) databanking;
(c) development of reception facilities
(d) marine environment protection; and

(e) research.

SEC. 40. Implementing Rules and Regulations. ~The Department and the concerned agencies shall
promulgate the implementing rules and regulations for this Act within one (1) year after the enactment of
this Act. ‘The proposed implementing rules and regulations shall be subjected to public consultations
with affected sectors. The Department shall ensure that functions of the implementing agencies and rules
and regulations promulgated prior to and after the effectivity of this Act are devoid of any duplication or
inconsistency.

The rules and regulations issued by other government agencies and instrumentalities for the
prevention of marine pollution not inconsistent with and appropriate to the implementation of this Act

shall supplement the rules and regulations issued by the Department pursuant to this Act.

SEC. 41. Joint Congressional Oversight Committee (JCOC). — The Joint Congressional Oversight
Committee created under Section 33 of Republic Act No. 9275 or the “Philippine Clean Water Act of
2004” shall also monitor the implementation of this Act and review the implementing rules and
regulations promulgated by the Department.

The JCOC shall exist for a period not exceeding five (5) years from the effectivity of this Act and
thereafter, its oversight functions shall be exercised by the Senate Committee on Environment of the
Senate and the Committee on Ecology of the House of Representatives, acting separately.

The Secretariat of the Congressional Oversight Committee shall come from the secretariat
personnel of the Committees of the Senate and the House of Representatives comprising the JCOC.

SEC. 42. Marine Environmental Management Fund (MEME). ~ There is hereby established a
Marine Environmental Management Fund (MEME) to be administered by the PCG. The Oil Pollution
Management Fund (OPMF) created under Section 22 of Republic Act No. 9483, otherwise known as the
“Oil Pollution Compensation Act of 2007”, is hereby abolished. All balances, including the liabilities
incurred by the OPMF, shall be transferred to the MEMF. The MEMF shall be sourced from the
following:

(a) Fees, charges and fines imposed pursuant to this Act and Republic Act No, 9483;

(b) Donations, endowments, grants and contributions; and

(c) Amounts specifically appropriated for the MEMF under the annual General Appropriations

Act.
The MEMF shall be utilized for the following activities:

(1) Containment, removal and clean-up operations of the PCG in all oil pollution cases: and
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(2) Enforcement and monitoring activities of the MARINA, the PCG and port authorities of the
Department and other relevant agencies: Provided, That ninety percent (90%) of the funds shall be
maintained annually for the containment, removal and clean-up operations of the PCG in all cases of
pollution from ships: Provided, further, That in no case shall the MEME be used to fund personal
services expenditures except for the compensation of those involved in clean-up operations

SEC. 43. Appropriations. — The amount necessary to carry out the provisions of this Act shall be
charged against the current year’s appropriations of the concerned agencies. Thereafter, such sums as
may be necessary for the operation and maintenance of this Act shall be included in the General
Appropriations Act

SEC. 44. Separability Clause. ~ In the event that any provision of this Act is declared
unconstitutional, the validity of the remainder shall not be affected thereby.
45. Repealing Clause. ~ The fifth paragraph of Section 28 of Republic Act No. 9275 and
Section 22 of Republic Act No. 9483 are hereby repealed. Republic Act No. 6969, Presidential Decree
Nos. 979 and 601 are hereby amended and modified accordingly. All laws, decrees, rules and regulations

and executive orders contrary to or inconsistent with this Act are hereby repealed or modified
accordingly

SEC. 46, lffectivity Clause, ~ This Act shall take effect fifteen (15) days after the completion of its
publication in the Official Gazette or in at least two (2) newspapers of general circulation

Approved,
°

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