+

RECEIVED
Republic of the Philippines 5, JUL 2010
ROUSE OF REPRESENTATIVES
Quezon City ogo

SEVENTEENTH CONGRESS

First Re C
irst Regular Session peaeTeanWRR

House BiLLNo, 1104 BILLS AND INDEX SERVICE

HOUSE °F REPRESENTATIVES

Introduced by REP, TEDDY BRAWNER BAGUILAT

AN ACT TO PROTECT, CONSERVE, UTILIZE, DEVELOP AND SUSTAINABLY MANAGE
FOREST RESOURCES AND FOR OTHER PURPOSES

EXPLANATORY NOTE. >

At the core of this bill is the recognition of the social, ecological, biological and economic value of
forests. Setting this as the benchmark, the Bill seeks to shift the current paradigm in forest
management. It seeks for the protection, conservation, utilization, and development of our forests
through a sustainable forest management strategy.

For years, Philippine laws on forests focused on them as resources for utilization and exploitation.
‘Such an outdated concept needs revamping. The bill pursues a paradigm shift that stresses forest
conservation, not just utilization and exploitation. The priority is to ensure that forests are
responsibly and properly managed using ecologically sound science supported by a strong and
sustained framework organization.

It is time to regard our forests as an essential element for the well-being and the continued survival
of alll Filipinos in all parts of our country. Their value is incalculable. More than just timber, our
forests protect our watersheds, act as a defense against soil erosion, regulate the water and carbon
cycles, and provide for other essential raw materials. Allin ali, we rely heavily on our forests to live

Furthermore, forests are home to Indigenous Cultural Communities (ICCs) and Indigenous Peoples
(IPs). The way of life of these ICCs/IPs is inextricably intertwined with the forest. Without the forest,
they lose their cultural heritage, Forests also host a variety of animal and plant species endemic to
the country,

Such illustrations are proof that our forests are extremely valuable in themselves. Their continued
existence, and not just their utilization and exploitation, should be emphasized

With the aforementioned reasons, hastening the passage of this bill becomes more apparent. It is
no longer a simple matter of promoting land use practices that expand the forest resource base and
promote food production activities, It is a race against time. Not acting fast enough could lead to lost
opportunities in mitigating global warming, preventing the loss of the cultural heritage of ICCs and
IPs and biodiversity resources unique to Philippine forests and worst, loss of lives. Any delay may
prove disastrous, and irreversible


‘Our priority then is to ensure that forests are responsibly and properly managed using ecologically-
sound science and supported by a strong and sustained framework organization. We need fo
rationalize a forest land use policy and plan out a comprehensive and definitive forest management

program to ensure that the next generations will be able to benefit from forest resources and
services.

We also need to ensure thal forest management would be truly participatory and equitable. Local
government units should be empowered to take the lead in forest management and must ensure
that communities participate and benefit in the sustainable management of forests and their
resources and that the rights of indigenous peoples must be upheld. .
Lastly, we need to ensure that forest management efforts will be sustainable through education by
ensuring that every Filipino child learns to value and care for our forests with the understanding that
caring for them ensures the survival of all

Such provisions are contained in the Bill.

For the foregoing reasons, the immediate passage of this bill is earnestly sought,

Repres€nttaive. Lone District of ifugao



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

1104

HOUSE BILL NO.

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT TO PROTECT, CONSERVE, UTILIZE, DEVELOP AND SUSTAINABLY MANAGE
FOREST RESOURCES AND FOR OTHER PURPOSES

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

SECTION 1. — Short Title. This Act shall be known as the “Forest Resources Act of 2010”

SECTION 2, Scope and Coverage. The provisions of this Act shall apply to all lands of the public
domain classified as needed for forestry purposes, all forestlands, all forest resources found in
untitled agricultural lands and in private 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 the rights of indigenous cultural
communities or indigenous peoples to their ancestral domains shall be respected

All forestlands and forest resources therein under the administrative jurisdiction of the Autonomous
Region of Muslim Mindanao (ARMM) shall be managed, developed and conserved in accordance
with the Regional Sustainable Forest Management Act of 2003 of the ARMM.

SECTION 3, Basic Policies.

a. Pursuant to 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:

i. Within five (5) years from the passage of this Act, the specific limits of forestlands
shall be fixed and demarcated and thereafter, shall not be altered except through
an Act of Congress; The Congress shall, as soon as possible, also determine, by
law, the specific limits of forestlands and national parks, marking clearly their
boundaries on the ground. Thereafter, such forestlands and national parks shall
be conserved and may not be increased nor diminished, except by law. The
Congress shall provide for such period as it may determine, measures to prohibit



logging in endangered forests and watershed areas:

Ui, The use and conservation of forest resources shall bear a social, ecological,
biological and economic functions, responsibility, and accountability to promote
{ne common good of the present and future generations:

He The guiding principle in the sustainable and integrated management,
development, and conservation of forest resources shall be focusing on these
Biodivoar on the People who manage, conserve, and benefit from them;

Genetically Engineered (GE) and transgenic trees pose the gravest f dangers to
forest ecosystems and violate the Convention on Biological Diversity

b. The state shail protect the rights of indigenous cultural communities/indigenous peoples
{0 jheir ancestral domains to ensure their economic and social and cultural well-being

and shall recognize the applicability of customary laws in governing property rights or

{slations in determining the ownership and extent of ancestral domaine,

The State shall promote social justice in all phases of national development

The State shall encourage non-governmental, community-based, or sectoral

organizations that promote the welfare of the nation;

€.The State shall ensure the autonomy of local governments; and,

The State shall pursue an independent foreign policy. In its relations with other states,

the paramount consideration shall be national sovereignty, territorial integrity, national

interest, and the right to self-determination.

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

1. The watershed continuum as the basic forestland management unit-
Forestlands shall be managed,” developed and conserved utilizing
watershed continuum: as the basic management unit and under the
Principles of sustainable and multiple-use management, including
conservation of biological diversity;

2. Multi-sectoral participation. The participation of all direct and indirect,
especially local, stakeholders in sustainable forestland conservation,
franagement, and development shall be mandatory. Equitable sharing of
the benefits derived from forestlands and the resources therein shall be
ensured at all times;

3. Community-based forest management (CBFM) as a principal strategy-
Vesting access rights and responsibilities to forest resident or 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;

4. Protection of forests and natural resources as a priority concern- The
Protection of forests and the natural resources therein shall be given
Priority concern in order to ensure environmental stability, conserve
iological diversity, improve ecosystem’ functions and services. and
provide long-term ecological and economic benefits;

5. Reforestation as a priority measure- Reforestation shall be undertaken as
@ priority Measure to restore the ecosystem functions and services of
forests as well as improve the economic and ecological benefits of local
communities concerned;

6. Security of tenure of stakeholders- Pursuant to the principles of



systainable and multi-use forest management and equitable access to
forest resources, a secured tenure shall be guaranteed io
stakeholders concerned; and

7. Professionalism in forest service — A dynamic, professional and people-
puented forest service strongly adhering to conservation Principles shall
be established and fully supported by the State

which have been delimited, classified and declared aS such, pursuant to the provisions

Caneestral Domains” refers to all areas generally belonging. to indigenous cultural
aren anesindigenous peoples (ICCs/iPs) comprising lands. inland waters, coastal
areas, and natural resources therein, held under a claim of ownership, occupied or
Pojsessed by ICCs/IPs, by themselves or through their ancestors, communally or

Social and cultural welfare. it shall include ancestral lands forests, pasture, residential,
STeumutal, and other lands individually owned whether alienable avg disposable or
Sense, hunting grounds, burial grounds, worship areas, bodies of water, mineral and
seg (Ratural resources, and lands which’ may ne longer be exclusively occupied by
ICCSIIPs but from which they traditionally had access to fox their subsistence and
tractional activities, particularly the home ranges of 1OCsiIbe wen are still nomadic
and/or shifting cultivators;

‘Ancestral Lands” refers to land occupied, possessed and ulilized by individuals, families
and clans who are members of the ICCs/IPs since time immemorial, by themselves or
(rough thelr predecessors-in-interest, under claims of individcel vr traditional group
sen eahiP, continuously, to the present except when interrupted by war, force majeure or
clsplacement by force, deceit, stealth, or as a consequence of government projects and
Clter 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:

‘Assisted Natural Regeneration” or “ANR” covers any set of activities that enhance the
Ralural processes of forest regeneration. These include promoting the natural
paablishment and subsequent growth of indigenous forest trees, whet Preventing any
[actors that might harm them, e.g. competition from weeds, browsing by cattle, fire etc
ANR relies on existing natural Processes; it requires less labor input than tree planting
are ig therefore @ very cheap way to restore forest ecosystems, ANE ve appropriate
Wherever the natural processes of forest regeneration are, 6 cone extent, already
happening. At least few seed trees/ mature seed-bearing rainforest trees should exist
Geatby 10 provide seed rain in the area. Seed-dispersing animals should remain
sprouting nett? vicinity. Sites which already support a high density of tree saplings and
Sprouting tree stumps are particularly suited to ANR



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Scological complexes of which they are part. This includes diversity within the species
(genetic diversity), between species (species diversity), and among ecosystems
(ecosystem diversity);

‘Climate change” refers to a change in climate that can be identified by changes in the

Toctce Wor variability of its properties and that persists for an extended pericy typically

Communal forest’ refers 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
pource 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
SDlect ae omic Projects of local government units consistent with the policies and
objectives of this Act and principles of sustainable development.

“Community-Based Forest Management Strategy” refers to the strategy to improve the
well-being of forest dependent communities, and at the same time eneure sustainable
troagement, rehabilitation and protection of forestlands and the resources therein.
through the active participation of various stakeholders;

Conservation’ refers to the planned protection and management of forests, wildlife and
other forest resources so as to prevent waste and ensure future use;

(Conveyance" refers to any vehicle, vessel, device or animal used in gathering and/or
transporting forest products;

|Co-management agreement” refers to an agreement entered into by the DENR and a
local government unit/s to protect, restore, develop or manage forestlands, including
seyauroves and its forest resources, within the. geographic’ jurisdiction of such loca}
government unit/s consistent with the provisions of this Act;

‘Co-production agreement” refers 10 an agreement entered into by and between a
Guallfied person and the government, in accord with the 1987 Constitution, for the former
te Gevelop, utilze, 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;

‘Critical habitat" refers to a place or environment where species or ‘subspecies naturally
occur or has naturally established its population that are crucial to the survival of
Species and essential for its conservation:

‘Ritical watershed” refers to areas designated by the Secretary pursuant to the Wildlife
Resources Conservation and Protection Act and for their ability to supply water for
domestic, agriculture and/or industrial use;

Degraded forests” refers to forests with varying degrees of disturbance or loss of
Structure, function, species composition and productivity of less than 60% forest cover:
“Delimitation” refers to the establishment of permanent boundaries between forestlands,
ational parks/protected areas and agricultural lands as a result of demarcation:
‘Delineation” refers 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,

‘Demarcation” refers to the establishment of boundaries using visible markers,
crocnay ents of known natural features/landmarks, among others, as result of the actual
ground delineation;

‘Denuded forestlands” refers to forestlands that are devoid of forest tree cover;
“Department” refers to the Department of Environment and Natural Resources (DENR);



w. ‘Environmental Impact Assessment’ or “EIA” refers to the process Of predicting the likely
qiwirenmental consequences of implementing a’ project or undertaking and designing
{Re appropriate preventive, mitigating, or enhancement measures.

x ‘Environmental Compliance Certificate" or "ECC" refers to the document issued by the
Department certifying that a proposed project or undertaking will not cause a significant
negative impact on the environment; that the proponent has complied win all the
ieculrements of the Environmental Impact Assessment System: and that the Proponent
Envronmccd ato implement its approved Environment Management Plan found’ in tne
Environmental Impact Statement (EIS) or mitigation measures identified the Initial
Environmental Exarnination (IEE);

Decree No, 1886 for purposes of assessing the significance of the effects of any project
cnviadertaking (on the quality of the physical, iological, and. sociahecen once
Teaver yard designing the appropriate mitigating and enhancement measures,

2 ‘Environmentally Critical Project’ refers to project or program that has high potential for
significant negative environmental impact;

aa, “Forest” refers to an ecosystem or an assemblage of ecosystems dominated by trees
and other woody vegetation; a community of plants and animals interacting with one
another and its physical environment. It shall consist of trees with overlapping crown of
60-100% forest cover:

bb. “Forest guard” refers 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 bod regulations or
Of thle Act nag 2 Competent authorities to execute, implement or enforce the provisions
of this Act and other related laws and regulations;

os. “Forest products" refers to goods and services derived from forest such as, but not
limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood, bark. tree top, resin

historical, educational, social and ecological value

dd. "Forest resources” refers 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
eas Soll water, scenery, as well as the intangible services and values present i,
forestlands or in other lands devoted for forest purposes:

ee. "Forest/Forest Dependent Community” refers 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; 5

ff. “Forestlands” refers 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;

99. “Genetic engineering’ refers to genetic modification, or a special form of biotechnology in
which a section of DNA from one organism is introduced into another, in which it does
Not naturally occur, in order to produce a genetically modified organism (GMO) with
favorable properties based on the new combination of genes. The new genes in the
transgenic organism may be from an entirely different type of organism, or from a closely
related lineage.

nh. "Genetically modified organisms" or "GMOs" refers to organisms in which the genetic
fuaterial has been altered in a way that does not occur naturally. GMOs can be bacteria,
{ungl, viruses, plants or animals, with the exception of human beings:

"I. 'Grazing land’ refers to a portion of the public domain which has been set aside, in view
ofits topography and vegetation, for the raising of livestock:

Ji "Greenhouse gas” refers to any gas that absorbs infrared radiation in the ‘atmosphere

7


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nn

09.

Pp.
99.

rr,

3s,

Greenhouse gases’ include water vapor, carbon dioxide (CO), Methane (CH,), nitrous
oxide (N20), halogenated fluorocarbons (HCFCs), ozone (3), perfluorinated carbons
(PFCs) and hydrofluorocarbons (HFCs)

cocupied, possessed and utilized such territories, sharing common bonds of language,
Customs, traditions and other distinctive cultural sraits, or who have, through resistance
‘0 political, social and cultural inroads of Colonization, non-indigenous religions and

anclustrial Forest Management Agreement” or “IMA” refers toa production-sharing
retract entered into by and between the Department and a qualified person, whether
rebarseeenical, wherein the former grants to the latter the excels right and
foretell {© invest in, develop, manage, and protect a defined ares of the production
forestland, including the establishment, management and utilization of industrial timber

Sault the State shall be entitled to @ share in the gross output.

Kaingin’ refers 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;

-Kaingin making’ refers to a process employed to establish a kaingin;

Key Biodiversity Areas" refers to places of intemational importance for the conservation
Of biodiversity;

“Master Plan for Forestry Development’ refers to the twenty-five (25) year strategic
program of the Forestry Sector envisioned to guide its long term development. This
Pipgram includes: (a) policy and institutional development. (b) restoration and
fehabilitation c) watershed: and forestry development. (d) livelihood and poverty
eduction; and (2) timberinon-timber industry development:

National Park’ refers to the land of public domain classified as such in the 1987

diversity;
'Non-government organization" or "NGO" refers to a Non-stock, non-profit, and voluntary
organization;



uu. “Non-timber based industries” refers to various ‘industries that are dependent on raw
Traverials oF products derived from forests such as, but not limited to, rattan, bamboo,
vines, latex, resins, saps, essences, fruits, flowers or wild flora and fauna;

wv. "Non-timber charges” refers to the levy imposed and collected by government on various
industries that are dependent on raw materials or products derived from forests such as,
but are not limited to, rattan, bamboo, vines, latex, resins, saps, essences, fruits, flowers
or wild flora and fauna, as well ecological and aesthetic services;

ww. 'Non-timber forest products” refers to all products gathered from the forest that are not
timber, which include, but are not limited to, rattan, bamboo, vine, herb, exudates, gum,
resin, beeswax, gutapercha, and almaciga resin;

‘Permit’ refers to a short-term privilege or authority granted by the State to a person to
uillze any limited forest resource or undertake a limited activity within any forest land
without any right of occupation, possession, and ownership therein;

¥y. ‘Person’ refers to a natural or juridical person, including local forest communities and/or
indigenous peoples organized in accordance with law or custom:

22, (Plantation forestry’ refers to the planting of one or two species for the sole: purpose of
harvesting; 7

aaa. “Primary forest" refers 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;

bbb. "Processing plant’ or “Processing mill’ refers ‘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.

coc. "Production forestlands” refers to the forestlands defined under Sec. 8(b) of this Act;

ddd. “Production sharing agreement” refers to an agreement wherein the State grants a
Person/s, who provides all the necessary financing, technology, management and
Personnel, 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:

eee. “Protected Areas’ refers 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; =

fff, “Protection forestlands” refers to the forestlands defined under Sec, 8 (a) of this Act

999. “Reforestation” refers to all land use activities directed towards restoration,
establishment and sustained management using native species of diversified vegetation
on denuded, degraded and/or marginal lands, including but not limited to the planting
and tending of timber, orchard and multi-use trees;

hhh. “Reservation” refers to an area of the public domain reserved by law for a specific
purpose;

lll, “Restoration” refers to the bringing back of the forestland to its original state in terms of
species composition, structure, function and productivity;

jij. “Restoration zones” refers to the area where restoration activities are conducted and
where the original vegetation shall be restored:

kkk, “Road” refers to bulldozed land which is accessible by at least a two-wheel motorized
vehicle;

Mi "Rotation’ refers to the number of years between the initial establishment of a plantation
and the time when it is considered ready for harvesting: 2

mmm. "Secondary forest’ refers to a former forest that was logged over and is



characterized by residuals;

nnn, "Secretary" refers to the Secretary of the DENR:

S00. “Semifinished wood products’ refers to wood products requiring final stages of
manufacture and/or assembly such as, but not limited to, window components, table
tops. veneer, tongue and groove planks, steps for stairs, and other similar products:

Ppp. “Silvicultural practices” refers 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:

999 Subdivision’ refers to a tract or parcel of land partitioned into individual lots, with or

tr. "Sustainable development”
without compromising the ability of the future generations to mee! ther own needs;

Sss. “Sustainable forest management” or “SFM” refers to the Process of managing a forest
{0 achieve one or more clearly specified objectives of Management with regard to
Production of continuous flow of desired forest products and services without undue
feduction of its inherent values and future productivity and without undesirable effects on
the physical and social environment;

Nt “Tenure” refers to the guaranteed peaceful possession and use of specific forest land
area and specific resources found therein, covered by an agreement, contract, or grant
which cannot be altered or abrogated without due process;

uuu. “Timber-based industries” refers to industries that are dependent on wood as the
eeaba taw material including but not limited to sawmilling, pulp and Paper making, and

and furniture manufacturing: .

wv. Timber charges” refers to the levy imposed’ and collected by the government on
inber products cut, harvested, or- gathered trom production toreatinnge and from
alienable and disposable (A&D) lands in accordance with Republic Act Na. 7161;

ww. WTimber License Agreement” or "TLA” refers to a privilege granted by the State to a
cecepatin lze forest resources within an area with the right of possession ena
corezalion thereof to the exclusion of others except the government, buf with ie
Gath tre end Obligation to develop, protect, and rehablltate the same in accordance
with the terms and conditions set forth in the said agreement,

0% rimber plantation” refers to a tree stand established by planting andior seeding. The
Stand |s either of introduced species (all planted stands), or an intensively managed
Sane Of any indigenous species, which meets all the following criteria: one oe two
Porras plantation, even-aged class, and regular spacing for the primary purpose of
harvesting timber or any of its by-product;

YY eifansgenic’ refers to a genetically modified organism (GMO) or genetically

offspring;

wz. ‘Watershed Continuum” refers to an area consisting of the watershed and its divide
Including its connection from the headwaters to the reef;

a9 at wnntershed Continuum Management’ or "WM refers to a management system
‘rat wil provide the optimum social, cultural, economic and environmentar benoite one
Roe ember Of People, particularly those living in, adjacent to, or downstream of
individual watershed areas, while maintaining the biological and cultural heritage of the
onthe othe holistic multiple use and sustainable management of all the resourecs
thin a spatial unit known as the watershed. The Watershed Continuum Management is
based on the following guiding principles: (1) Ecological sustainability: (2) Social and

10



cere, “Wildlife” refers to wild forms and varieties of flora and fauna, all developmental
stages; and

dddd. | "Woodlots” refers to a track or plot of land planted with fast growing tree species

reducing harvesting pressure on local forests. Rotational Woodlot Agroforestry Systems
include the following components: (1) Establishment, which includes tree and crop
intercropping; (2) Fallow, which pertains to build up of wood and soil fertility; and (3)
Postfallow, which pertains to wood harvesting and sequential cropping

CHAPTER II
CLASSIFICATION OF PERMANENT FORESTLANDS

SECTION 5. Permanent Forestlands. All forestlands currently classified as. such

SECTION 6. Instruments within Permanent Forestlands. Titles, settlements, permits, lease,
and/or agreements within critical habitats, critical watershed areas, protected areas, important
Plodiversity areas (IBAs), and key biodiversity areas (KBAS), shall be reviewed, ara’ legality
be determined. All erroneous titles, settlements, permits, leases and/or agreements or non-

SECTION 7. Additional Areas to be Included as Permanent Forestlands. The following lands
are needed for environmental protection and forestry purposes and shall not therefore be
Classified as agricultural lands or for other land use:

4. Isolated patches of forest, regardless of size of area, with rocky terrain or which protect a
spring for communal use;

®. All mangroves and swamplands including twenty-meter wide strips thereof facing
Oceans, lakes and other bodies of water not yet classified as alienable and disposable
lands;

©. Ridge tops and plateaus regardless of size found within or surrounded wholly or partially
by forestlands where headwaters emanate:

&. Twenty-meter wide strips of land from the edge of the normal high waterline of rivers and
streams with channels of at least five (5) meters wide which are not yet classified as
alienable and disposable;

& Areas needed for other purposes of public interest such as research or experimental
purposes and others; and

f Ateas considered environmentally critical because of their vulnerability to damage from
landslides, volcanic eruptions, and other natural causes.

Owners who have acquired vested rights over lands enumerated above are required to
implement soil and water conservation measures, in coordination with the Department and the
appropriate local government unit. An Environmental Compliance Ceitificate (ECC) shall be
required in these environmentally critical areas in accordance with existing law Provided, That the

"



cancellation or revocation under any of the following conditions:
3 Failure of the owner, after due notice, to implement appropriate soil and water
conservation;
Failure of the owner!s to comply with ECC requirements when required: ,
© The issuance of titles over such areas was accomplished through fraud, deceit,
misrepresentations or other anomalies; or
d. When public interest so requires.

Provided further, That the concerned LGUs may recommend to the DENR to file expropriation
Proceedings given the conditions enumerated in this provision,

SECTION 8, Sub-Classification of the Permanent Forestiands. The permanent forestlands
shall be sub-classified into the following categories according to primary use.

& Protection forestlands shall consist of all natural and restored forests including areas
identified as key biodiversity areas, critical habitats, freshwater, swamps, and marshes
all areas along the bank of rivers and streams, and the shores of the seas and lakes
throughout their entire length and within a zone of three (3) meters in urban areas,
twenty (20) meters in agricultural areas, and forty (40) meters in forest areas, along their
margins which are subject to the easement of public use in the interest of recreation
navigation, floatage, fishing and salvage shall also be sub-classified as protection
forestlands. All extractive industries such as, but not limited to, logging and mining are
banned in these protection forestlands; Provided, That the provisions of the IPRA shall
be respected;

®. Production forestlands shall be all forestlands not sub-classified as protection
forestlands defined in this Section, and shall be devoted to the production of timber
and/or non-forest products or the establishment of industrial tree plantations, tree farms.
communal forests, agroforestry, grazing, or as multiple-use forests including waler.
based energy areas such as but not limited to hydro and geothermal reservations
Provided, That they shall be managed, developed, and utilized in accordance with a
LGU-approved management pian consistent with the prescribed Forestry Master Plan
and based on sustainable forest management principles: Provided, further, That the
department may change the sub-classification of specific areas of production forestlands
into protection areas and recommend to Congress their establishment as part of the
integrated protected area systems in accordance with the NIPAS Act, or as critical
habitat under the Wildlife Resources Conservation and Protection Act: Provided finally,
That ancestral domains located within protection and production forests shall be
governed by customary laws;

c. Restoration areas are areas to be designated in the management plan as such
Designation of a restoration area is compulsoty in all forest management plans

SECTION 8. Demareation 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 forestlands found to be
still suitable and capable for its purpose, Provided further, That the Department shall submit an
annual accomplishment report and that within five (6) years, has caused the complete
demarcation and delimitation of land classification lines.

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SECTION 10. Availability of records. 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 Il

ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND ITS RESOURCES

SECTION 11. Jurisdiction and control of forestlands. The Department shall be the primary
agency responsible for the conservation, restoration and the sustainable utilization of
forestlands and the unclassified lands of the public domain. It shall formulate a national forestry
master plan and the policies promulgated in this Act. In coordination with LGUs and other
government agencies, it shall ensure that forestlands and unclassified lands of the public
domain are managed, conserved, developed, utilized and protected consistent with the policies
Promulgated in this Act; Provided, that the management plan for protected areas shall be
prepared in accordance with the provisions of the NIPAS Act, the Wildlife Resources Act, the
Local Government Code, and the IPRA, and other relevant laws and international covenants, as.
well as other pertinent laws; Provided further, That certain functions and powers of the
Department may be devolved to the local government units.

SECTION 12. Co-Management Agreement for the Devolution of Functions. The Department,
the Department of Interior and Local Government, and the concemed LGUs shall execute a co-
management agreement, which shall contain the program and schedule by which functions shall
be strategically devolved, providing for capacity-building and empowerment mechanisms.

SECTION 13. Powers and Responsibilities of the 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 and utilization of forest resources within their territorial jurisdiction
including those assigned by law to other government agencies. The LGU and the Department
shall jointly undertake the preparation and implementation of forestland use and watershed
continuum management plans, consistent with the Ancestral Domain’Sustainable Development
and Protection Plan (ADSDPP) and in consultation with other government agencies, local
communities, non- government organizations and other sectors. Partnerships with LGUs and
local communities are highly encouraged. Such plans shall be fully funded and made an integral
component of the LGU's Comprehensive Land Use Plan (CLUP).

The devolved functions include, but are not limited to, the following:
a) Implementation of community-based forestry projects, e.g. Community-based Forest
Management Agreements;

Establishment of reforestation projects except in protected areas and critical watersheds;

Completed:family and contract reforestation projects;

Forest Land Management Agreements;

Community Forestry Projects;

Management and control of forests located in the LGU’s jurisdiction;

9) Management, protection, rehabilitation and maintenance of small watershed areas which
are sources of local water supply as identified or to be identified by the DENR;

h) Enforcement of forestry laws; and

i) Prevention of forest fires, integrated pest management and protection against forest
invasive species ‘ :

2e

2ase

SECTION 14. Multisectoral participation. In formulating conservation and management plans

13



and programs, multisectoral participation shall be required

SECTION 15. Local Government Unit Consent and Consultation. Proponents of all forestry
projects to be implemented in the LGUs’ territorial jurisdiction shall strictly comply with Sections
26 and 27 of the Local Government Code.

SECTION 16. Forest Board, A forest board (Board) shall be created at the Municipal level which
shall be composed of a representative from the LGU and representatives of different sectors
including but not limited to, women, farmers, fisherfolks, and indigenous peoples, shall set the
policy direction for the management, utilization and development of forestlands and resources
found within their respective jurisdictions in accordance with the watershed continuum plan

SECTION 17. Functions of the Forest Board. The Board shall be responsible for the over-all
Policy direction for the management of the forestlands and forest resources found within their
respective jurisdictions in accordance with the provisions of this Act. It shall review and
recommend implementation of programs and projects and perform oversight functions on
matters pertaining to environment and natural resources, It shall also participate in the review
and recommend relevant policies for the protection, conservation and restoration efforts within
the continuum and ensure the contribution of the forestry sector to national economy, ecological
Sustainability and, sustainable development closely adhering to the principles and action plans
sel under Philippine Agenda 21 and its revised versions, It shall moreover facilitate the initiation
of the LGU's participation in the devolution program and shall monitor the transfer and
implementation of devolved functions at the LGU.

SECTION 18, Creation of a Municipal Environment and Natural Resources Office. A
Municipal Environment and Natural Resources Office (MENRO) is hereby created, including the
position for the Municipal Environment and Natural Resources Officer.’ The LGU shall ensure
that funds are available for the operations and salaries of personnel for this Office.

SECTION 19. Qualifications of a Municipal Environment and Natural Resources Officer. The
Municipal Environment and Natural Resources Officer should have a background in planning,
natural and environmental science, and should be civil service eligible

SECTION 20. Functions of the MENRO. The MENRO shall facilitate the preparation of
Management plans. It shall recommend to the Board relevant policies for the protection,
conservation and restoration efforts within the continuum. It shall evaluate applications for forest
Management agreements; monitor the performance of holders of all tenurial instruments issued
by the LGU and Department. The MENRO may recommend to DENR appropriate action with
regard to the implementation of pertinent laws, rules and regulations. The MENRO shall
exercise visitorial powers over the forestlands.

SECTION 21. Forest Management Committee within a watershed continuum. A forest
management committee shall be created under. the Municipal Development Council
Municipalities/cities falling within the same watershed continuum shall form a. forest
management committee within the Provincial Development Council. Provided further, That
Provinces falling under the same watershed continuum will create a committee within the
Regional Development Council. These committees shall be responsible for the preparation of

the required overall management plans, in relation to the direction set by their respective Forest
Boards.

SECTION 22. Forestlands under Other Government Agencies. Forestlands and/or portions
thereof which have been assigned by law to the administration and management of other

14



government agencies for a specific purpose prior to the passage of this Act shall remain under
the administration and management of these government agencies which shall be responsible
for their conservation, protection, and restoration. The Secretary and the concerned local chief
executive or their respective duly authorized representative shall exercise visitorial powers over
these forestlands, Moreover, these forestlands shall be’ administered in accordance with a
forest management plan embodied in the comprehensive forest management and land use plan
of the LGU, which shall be prepared by the concerned management committee of the watershed
continuum level within one (1) year from the effectivity of this Act. Said multisectoral body shall
periodically review, monitor, and evaluate the implementation of the said management plan
Provided, That the harvesting of forest resources and building of roads and other infrastructure
therein shall be undertaken only with the prior approval of the LGU upon the endorsement of the
local forestry boards, and after compliance with EIS and ECC requirements: Provided further,
That the LGU shall endorse to the Secretary who shall recommend to Congress or the President
of the Philippines the reversion to the LGU 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 concerned fails to rehabilitate, protect, and conserve the forestland resources in
accordance with the approved management plan. The LGU, in coordination with its forestry
board and consistent with the watershed continuum plan, shall determine the use of the reverted
forestlands

SECTION 23. Forest Resources within Alienable and Disposable Lands. All forest resources
planted or raised within alienable and disposable lands belong to the holder of the instrument
giving rights to the claimant, who shall have the right to sell, contract, convey or dispose of the
Same subject to a certification process to be developed by the Department. The Department
shall prepare the guidelines in coordination and cooperation with LGUs and multisectoral
consultations. Holders of said instruments who register their forests lands for forestry purposes
with the LGU shall be assisted in the preparation of a management plan consistent with the
watershed continuum management plan, and shall be entitled to appropriate incentives provided
under Section 44 herein, on reforestation in private lands: 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, 6667 or the Comprehensive Agrarian Reform Law or any
other similar law that may be enacted.

SECTION 24. Forest Resources within Production Forestlands, Resources, ingluding 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
production forestlands shall be issued the appropriate permit, agreement or clearance, Any
declaration of forest resources as threatened shall be in accordance with the Wildlife Act and
other relevant laws.

SECTION 25. Logging in Production Forestlands. To ensure the conservation and sustainable
use of forest resources in production forestlands, holders of timber licenses, permits and/or
agreements shall submit to the LGU an Integrated Operations Plan (IOP) containing strict
environmental guidelines such as ECC compliance. 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 IOP,
which shall be prepared by or under the supervision of an accredited private registered forester
whose signature and dry seal shall appear in the plan and the supporting documents submitted
for this purpose.

SECTION 26. Forest Resources within Protection Forestlands. Only non-timber forest products
Shall be allowed to be extracted from protection forestlands and shall be issued the appropriate

%



Permit, agreement or license, Provided, that harvesting or gathering of timber for subsistence
use of indigenous communities and forest communities shall be allowed but only in woodiots
established by the communities. Any declaration of forest resources as threatene, and other
restrictions shall be in accordance to the Wildlife Act.

SECTION 27. Absolutely Prohibited Activities in Protection Forestlands. Commercial
logging, mining and other similar extractive activities such as but not limited to treasure hunting
shall be absolutely prohibited in protection forestlands.

SECTION 28. Review of Reservations within Protection Forestlands. All reservations made
within protection forestlands shall be reviewed. Reservations which are contrary to the

provisions of this Act, including, among others, mineral. or settlement reservations, shall be
withdrawn

SECTION 29. Commercial Logging Ban in Protection forestlands. There shall be a permanent
ban on commercial logging activities in all protection forests defined, categorized, and sub-

Classified in Section 8(a) herein, No licenses, permits, or agreements to cut any timber therein
shall be issued,

SECTION 30. Protection Forestlands covered by Existing Permits, Licenses and/or
Agreements. All existing permits, licenses and agreements shall be reviewed, and, if protection
forestlands are found within an agreement or licensed area, such protection forestlands shall be
immediately excised from said permit, license and/or agreement, and the holder of the
agreement or license shall establish a buffer zone and delineate their boundaries with the
production forestlands, marking the same with concrete monuments, road, or infrastructure, or
any other visible, permanent, and practicable signs.

SECTION 31. Duty of the License Permit-holder. In coordination with the concerned LGU, the
agreement: or license-holders shall protect and conserve such protection area following a plan
consistent with the prescribed management-plan for key biodiversity areas or similar strategies
by the Department, The agreement- or license-holder concerned shall be accountable for the
destruction of such protection forestlands that did not result from force majeure, and such
destruction shall serve as basis, in addition to the other violations enumerated in this Act hereof,
for the termination or revocation of the agreement, license, or permit, and the filing of proper
charges under the NIPAS Act and pertinent forestry laws, rules and regulations. In the absence
of a contractor or agreement holder over such production forestlands, the delineation of said
boundary shall be undertaken and prioritized by the Department.

SECTION 32. Non-Extension of Timber License Agreements. No extensions shall be made on
any existing TLA, and the area covered by the agreement shall automatically be sub-classified
as protection forestland after the representatives of the Department, the LGUs concemed, the
Department of Agrarian Reform, NGOs, peoples’ organizations, and other stakeholders had
excluded degraded areas that may be subject of a reforestation project.

SECTION 33. Forest Resources within Ancestral Domains/Ancestral Lands. When forest
resources are within ancestral domains/ancestral lands which are otherwise production or
Protection forestlands, aside from the necessary permit, license or agreement, the genuine free.
Prior and informed consent of the indigenous communities shall also be secured, Provided, That
if the indigenous communities will themselves harvest these resources for their subsistence or
survival use, the provisions of IPRA shall apply and no permits shall be required as owners of
Such resources, Provided finally, That, if the indigenous peoples will themselves harvest such
resources for commercial purposes, they shall be subject to the same limitations and conditions

16



as provided by 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,

SECTION 34. Mandatory BIA. Any permit, license; agreenientor any other instrument to develop
Or use forestlands or resouross therein, including those found within ancestral domainsyands
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. 1154 or the Philippine Environmental Policy, Presidential Decree No. 1586, Establishing an
Environmental Impact Statement System, and this Act

CHAPTER IV
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT

SECTION 36. Forestry Master Plan. The Department shall periodically prepare the map, revisit or
review the Forestry Master Plan in consultation with local stakeholders, and shall revise the said
lan according to the provisions of this bill, taking also into consideration biodiversity
pyusetvation, carbon sequestration and other matters of the same import. The Forestry Master
Plan shall be presented to all-LGUs, and other stakeholders. upon completion and shall be
posted in conspicuous areas and made accessible to the public. +

SECTION 36. Sustainable Forest Management Planning. Subject to vested or prior rights, the
Department, in consultation and coordination with LGUs, other goverment 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
welldefined watershed or other appropriate forest management unit based on criteria,
indicators, and standards for sustainable forest management which, at their minimum, addrese
the following requirements:

. Rational allocation of forestland uses and promotion of land use practices that increase
productivity and conserve soil, water, and other forestland resources:

b. Protection of existing forest resources and conservation of biodiversity;

© Restoration of denuded areas, making use of indigenous tree species for biodiversity
conservation in protection forests and buffer Strips of water channels and bodies;

d. Establishment of tree plantations in production forest lands, private lands, and alienable
and disposable lands; * 7 m

& Enhancement of thé socio-economic well-being’ of local communities including
indigenous peoples who are largely dependent.on the forest for their livelihood

f. 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;

9. Adoption of community-based forest management as a principal strategy in the
management of forestlands and resources; and,

h. Harmonization and integration of the forest management plan of forestlands and
resources with other plans, such as the forest management plan and the land use plans
of the LGUs, protected areas management plans in areas covered by the same, critical
habitat management plan, barangay development plan, CLUP of cities and



Municipalities and physical framework plans ‘of the provinces and the regional
Gevelopment plans, and be consistent with the ancestral domain management plans and
protected area management plans areas covered.

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

SECTION 37. Watershed Continuum Management Strategy. The Watershed Continuum
Planning and Management Framework in Environment and Natural Resources shall be
adopted, The strategy for improved watershed resources management shall be demand-criven,
community-based, and multiple- and sustainable-use considering national priorities and
Concems of local stakeholders, Watershed continuum management programs initiated by the
government 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 continuum
management initiatives. The Department in consultation with the LGUs shall identify the
watershed continuum in the country and provide the maps for each

SECTION 38. Prioritization of watersheds. A system of prioritization of watersheds shall be
pursued considering the following:

Biodiversity and environmental enhancement;

Cultural and historical value;

Water supply for domestic, irrigation, power, industrial, and commercial use.
Contribution to the economy; and

Effect on downstream areas,

gao0c8

SECTION 39, Forest Resource Database and Monitoring System, Areas identified by the
Department as forests as defined under this Act shall be verified and validated by the Forest
Development Center, including those within ancestral domains and lands. A centralized:
forestiand resource database shall be made available to the public at all times, online if
Possible. which shall consist of comprehensive updated information on the physical, social,
economic, biological, environmental and cultural components of the country’s forestlands and
Shall include a log control monitoring or timber identification system to enable the Deparment
and its field offices to track the movement or transfer of fimber and other forest products from a
forestland 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.

SECTION 40. Environmental Impact Assessment, Resource 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, and road, infrastructure,
and mill construction, shall be subject to 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. A scientific
resource valuation of impacts of affected biophysical and environmental elements, and an
extended benefit cost analysis shall be used in the EISS. The Department shall design and
implement a system of regular periodic 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; The Department shall establish the total value. of forestlands based on
multiple uses, including their environmental services.



CHAPTER V
REFORESTATION AND RESTORATION

SECTION 41, Restoration in Protection Forestlands. The restoration of all critical watersheds
and critical, denuded, and degraded forests within protection areas shall be prioritized, Only the
use of indigenous or native species in the restoration and rehabilitation of protection areas shall
be adopted to enhance biological diversity therein. ‘The LGUs in coordination with. the
Department, other government agencies, NGOs, local residents and communities, and other
sectors concemed, shall identify and prioritize forestlands to be reforested. The LGU, consistent
with the watershed continuum plan and the corresponding municipal forest land use plan may
enter into agreements with qualified persons, including forest community organizations, in the
restoration of protection forestlands.

SECTION 42. Identification of Restoration Forestlands. LGUs, in cooperation with the DENR
and other government agencies, NGOs, local residents and communities shall identify and
prioritize forestlands to be restored, Provided, priority restoration shall be a band of 200 meters
from the boundary of protection areas and protected areas, abandoned mines and abandoned
and idle fishponds for mangrove restoration. For mangrove forests, the LGU shall prepare a
rehabilitation plan to restore mangroves in their area. Provided further, That an accelerated
restoration program in such identified priority protection forestlands shall be undertaken to raise
the forest cover therein at least fifty percent (50%) of the prioritized area within five (5) years
and eighty percent (80%) of the area within ten (10) years from effectivity of this Act. The LGU
shall allot funds to. effectively accomplish restoration either by its own.or through permit, license
and/or agreement in protection forestlands, The Departinent or other agencies responsible for
restoration. shall give priority to local communities in the granting of technical and financial
assistance for restoration activities, Provided finally, That assisted natural regeneration (ANR)
shall be encouraged in protection forestlands.

SECTION 43. Reforestation or Tree Plantation Development in Production Forestiands. In
accordance with Section 50 herein, the LGU may enter into joint venture, co-production, or
production-sharing agreement with qualified persons to reforest or to develop tree plantations in
Production forestiands, Provided, that palm plantations and the like shall not be allowed in
production forestiands.

SECTION 44. Reforestation in Forestlands under the Jurisdiction of Other Government
Agencies. Government agencies and institutions having management control over forestlands
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 degraded areas using native species, to be identified jointly by the
Department and agency concerned and multisectoral stakeholders. The concemed agency in
coordination with the LGU shall prepare the reforestation plan, consistent with the watershed
continuum 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 LGU: Provided, however, That in areas where Community-based
Forest Management Strategy (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
the provisions of this Act, the completion of the reforestation program shall be subject to the
conditions provided in the instrument to be awarded by the Department and the agency
concemed to the participating local community or individual or in the Forest Manageinent

19



Agreement of contractors operating such facilities’ for basic services, as approved by the
Department. Provided finally, that whenever applicable, the use of ANR shall be preferred and
community-based forest management encouraged.

SECTION 45. Reforestation in Alienable and Disposable Lands and/or Private Lands.
Reforestation or the establishment of tree farms or tree plantations in private lands guided by
the watershed continuum Plan shall be encouraged: Provided, That such private lands ang
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 44 herein: Provided, That such private tree plantations are
duly registered with the Department, Whenever applicable, use of ANR shall be preferred and
community-based forest management encouraged,

SECTION 46. Incentives of Reforestation or Restoration within Production Forestlands. To
gncourage qualified persons to engage in restoration or reforestation activities, the following
incentives shall be granted: .

a 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
{0 @ fair compensation thereof, the amount of which shall be mutually agreed upon by
both the LGU and the agreement holder, and in case of disagreement between them, by
arbitration through a mutually acceptable and impartial third party adjudicator;

b. The agreement holder has the right to transfer, contract, sell, or convey his rights to any
Qualified person following the guidelines to be issued by the Secretary, Provided, that if
such restoration or reforestation were conducted within ancestral domains/ancestral
lands, the transferee shall secure the free, prior and informed consent of the indigenous
communities of such ancestral domains/ancestral lands prior to such transfer; and,
©. In the event that the area restored has provided ecological services to the community,
user fees shall be allowed as incentives.

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 tree plantations, Provided, That in no case shall the Secretary provide incentives
that shail put the State at a gross disadvantage, nor shall the Secretary provide incentives of non.
Payment of taxes or other rightful fees due to the State as provided by other laws.

SECTION 47. Reforestation in Ancestral Domains/Ancestral Lands. Reforestation in ancestral
domains/ancestral lands, if not undertaken by the ICCs/IPs themselves, shall require the free
prior and informed consent-of the ICCs/IPs.

SECTION 48. Reforestation in Protection Forestlands. The Department may contract out the
reforestation and/or management of protection forestlands to any person, Provided, that such
Persons should meet the qualifications enumerated in Section 54. The Department shall
reasonably compensate such persons for such reforestation and/or management activities and

extend the necessary assistance in the reforestation and/or management of such protection
forestlands,

SECTION 49. Voluntary Offer to Reforest. Private. laridowners, whether natural or juridical
Persons, may participate in reforestation and plantation development or similar programs of the

20



LGU or the Department, with the landowner contributing his land and the LGU or 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 VI
COMMUNITY-BASED FOREST MANAGEMENT STRATEGY

SECTION 50. Community-Based Forest Management Strategy (CBFMS). Whenever they are
Present, forest resident families, communities, indigenous peoples and other communities
whose lives, culture and general well-being are intimately linked with the forests, shall be
entrusted with the responsibility to protect, manage, develop and utilize resources limited to
woodlots and non-timber forest products (NTFP) under the principle of stewardship, Timber
harvesting shall only be allowed in production forestlands designated in the Community
Resource Management Plans (CRMP), The Department together with the LGUs, and in
consultation with affected stakeholders and sectors, shall develop policies, criteria, guidelines
and tenurial instruments that will simplify and allow access of forest resident families, and local
communities to forestland resources, The LGUs will review all CBFMAs in their jurisdiction to
assess performance and determine membership status of the CBFMA-holder. The Department
together with the LGUs, in consultation with affected stakeholders and sectors, shall furthermore
develop policies, and guidelines that promote partnership between the private sector and forest-
based communities in pursuit of sustainable community forest management activities.

SECTION 51. Areas Available for CBFMS. Subject to prior or vested rights, the CBFMS may be
implemented on all appropriate forestlands excluding the ancestral domains/ancestral lands of
ICCs/IPs. Priority will be given to degraded and denuded forestlands.

The LGU may only allow the implementation of CBFMS in watershed reservations if it shall promote
their protection and rehabilitation; Provided, however that land-use practices and activities therein
are in accordance with a management plan duly approved by the Secretary and shall not induce
Severe soil erosion and surface run-off: Provided, further, That no timber harvesting shall be allowed
in forests; Provided also, That no CBFM agreements shall be issued to non-ICCs/IPs within
ancestral domains/ancestral lands, Provided finally, CBFMAs shall not cover Certificate of Land
Ownership Awards (CLOAs) and other tenurial instruments.

SECTION 52. Community Resource Management in CBFM Areas. The management of
forestland resources in CBFM areas shall be embodied in a community resource management
plan, which shall contain the community's vision, aspirations, and strategies in the management
of forestland resources, which shall be consistent with the forestland use plan (FLUP). Qualified
Communities shall be provided with appropriate long-term security of tenure, technical,
managerial and financial assistance, training; and other assistance, as the case may be, to
empower them to manage and benefit from the forestland resources on a sustainable basis.

SECTION 53, Qualified Participants. Organized forest communities shall be given priority to
Participate in the CBFM program. 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:
Traditionally utilizing the resource for their livelihood;

21



il, Actually residing within the area for at least five (8) years; and '
li, Residing adjacent and actually tiling portions of the area to be awarded

Gublect 10 relevant laws, rules and regulations, Provided, That interested local communities
through their organized and duly recognized associations shall be given priority in the grant of
Sppropriate instruments implementing the said agreements. Such instruments and/or
Gb) saanis shall have a duration of twenty-five (28) years, renewable for another twenty-five
(26) years, under such terms and conditions as may be provided by the Secretary, after
observing the qualification of the succeeding sections; Provided further ‘That management
@areements shall not be issued in favor of any person covering ancestral domains/ancestral
lands without the free, prior and informed consent of the concemed ICCs/iPs and the
recognition and protection of ICCs/IPs rights under pertinent laws:

Current valid and subsisting licenses, contracts, or agreeménts granted by the government for the
development, management, and utlization of forest resources within protection forestlands shall he
allowed to continue under the same terms and conditions until their expiry; Provided, That no
Gulting or felling of trees shall be allowed within the said protection forestlands, Provided further,
[That such agreements issued within ancestral domains should have had the free, prior, ard
Informed consent of the ICCsiIPs involved, otherwise, such license, contracts or agreements shal
be cancelled and revoked for violating the rights of said ICCs/IPs,

All agreements entered into pursuant to this section shall be subject to the approval of and
monitoring by the LGU, Provided further, That all applications and approved agreements shall be
posted in public places.

SECTION $5. ‘Terms and Conditions of Agreements. The Department, in coordination with the
LGUs, and, having undergone multi-stakeholder consultations shall formulate rules and
regulations covering the relevant terms and conditions thereof,

SECTION $6. 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 production sharing agreement

a, The holder is a Filipino citizen;

». The agreement holder shall fumish the necessary management, technology and
financial services when required, as determined by the Secretary:

¢._Provision/s for government share of revenues and the manner of payment thereof:

d. Provision/s on consultation and arbitration with respect to the interpretation ‘of the
agreement;

@. Provision/s for anti-pollution and environmental protection measures;

f Provision/s prescribing the preferential use of indigenous tree species for tree
Plantations: Provided, that in case of protections forestlands, only indigenous tree
species shall be used:

9. Frovision/s for an effective monitoring scheme to be implemented by the LGU, which
shall include, but shall not be limited to periodic inspection of all records and books of
account of the agreement holders;

h. Commitment to community development including capacity building of local

22



stakeholders;

i, The submission of a management and development plan to be approved by the LGU:
and

J. Other provisions that the LGU 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.

SECTION 57. Transfer. No holder of a co-production, -joint venturé,. 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 LGU. Moreover, no transfer shall
be authorized unless the agreement or contract has been in existence and active for at least
three consecutive years from 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; Provided further, That if such
agreement cover ancestral domains/ancestral lands, the free, prior and informed consent of the
ICCsIIPs involved with regard to such transfer shall be secured, otherwise, said agreement shall
be cancelled.

SECTION 58. Non-Timber Forest Products. Rattan, bamboos, vines, herbs, exudates and other
non-timber forest products are integral parts of the forest ecosystem. The planting and
sustainable management of non-timber producing species shall be encouraged and supported,
Provided, That they are indigenous species. The development; management and utilization of
Non-timber forest products shall be allowed in accordance with the FLUP, and corresponding
laws and regulations enforced by the LGU and consistent with guidelines to be promulgated by
the Department in compliance with national and international policy or agreements,

SECTION 59. Priority to Harvest, Utilize, Gather or Collect NTFP. In granting permits to
harvest, utilize, gather or collect non-timber forest products, in their natural or original state from
forestlands, priority shall be given to forest resident families, local communities, and indigenous
peoples living nearest the subject forestlands; Provided, That the wildlings collected from the
forests shall be utilized for nursery establishments, research and development and shall be
subject to guidelines formulated in the establishment of nurseries

SECTION 60. 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 that is consistent with the NBSAP. The use of
forest products from production forestlands shall be promoted and practiced

SECTION 61. Mangrove forest. Cutting in mangrove forests shall be prohibited. The Department
shall formulate a program for the restoration of mangrove forests and shall promote strategies
that are consistent with biodiversity conservation or enhance biodiversity.

SECTION 62. 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 (50%) in slope or over may be utilized for grazing purposes: Provided
also, That vegetation should be sufficient for livestock prior to the grant of such permits,
Provided, further, That existing pasture lease agreements or forestland grazing lease
agreements shall be allowed to continue under the same terms and conditions until their expiry:

23



Provided also, That burning of grass for the purpose of, grazing shall be prohibited; 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 and subject to provisions in this Act.

Existing pasture lease agreements or forestland grazing lease agreements shall be subject to
review and monitoring by the LGU. Recommendations resulting from the review shall be given
primary basis for actions

Applications for new pasture lease agreements or forestland grazing lease agreements shall be
reviewed and approved by the LGU and be covered by existing rules and regulations governing the
Philippine EIS System and subject to provisions of this Act

SECTION 63. Mining and Power Generation Operations in Forestlands. Forest resources
inside mineral reservations and permitted areas and their management and utilization are
subject to the provisions of this Act, Power generation. and small-scale mining operations in
forestlands, except in protection forestlands may be allowed only after the issuance of an ECC.
and in compliance with other relevant laws, Mining and power generation shall not be allowed in
protection and restoration areas, Provided, That micro-hydro or other renewable energy device
may be allowed subject to the provisions of this Act.

SECTION 64. 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, impairment to the resource values and with the least impact and
disturbance to biodiversity of the area found in such forestlands. 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 EIS
System, Provided, That no roads or other infrastructure shall be constructed in protection
forestlands,

CHAPTER Vil >
WOOD-BASED INDUSTRIES
SECTION 65, Establishment and Operations of Timber-Based Industries. The State, through

the Department, may promote the establishment, operation, and development of timber-based
industries only in production forestlands,

SECTION 66. Incentives for Timber-Based Industries. All agreements pertaining to timber-
based industries shall also be subject to review by the Department under procedures to be
formulated by the Department with mandatory consultation with stakeholders. The following
incentives are hereby granted in addition to those already provided by law:

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

24



or operated by holders of timber plantation agreements or contracts shall be co-terminus
with said agreements or contracts.

Warranties to and agreements with existing integrated forest-based plants to ensure the availability
Of raw materials shall be subject to the process for as long as such integrated plants are operating
Agreements or licenses over production forestlands granted to timber-based plants shall nat tos
automatically converted info any mode authorized in this Act. Holders of expired agreements may
apply for @ new permit, license or agreement subject to the provisions of this Act. Permit holders are
allowed a period of twenty-five (25) years, renewable for- another twenty-five (25) years, for a
the uum of fifty (60) years. Expansion in capacity of timber-based plants shall be encouraged and
{he same shall be ‘given priority access to production forestlands and other areas availble ie
development as source of raw materials.

SECTION 67. Export and Sale of Locally Produced Wood Products. No natural grown trees
shall be cut, gathered, harvested or removed from forests. Logs, lumber and other finished
Products from tree plantations shall be exported only under such guidelines as the Secretary
may promulgate and certified as coming from the production forestlands by LGUs. A certification
Process shall be formulated by the Department in consultation with key stakeholders.

SECTION 68. Compliance of Grading Rules. 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 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, *

SECTION 69. 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 VIII
CHARGES, FEES AND GOVERNMENT SHARE

SECTION 70. Fees and Government Shares for the Utilization, Exploitation, Occupation,
Possession of and Activities within Forestlands, The "Department shall prescribé appropriate
government shares, including 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 84 of this Act shall also be entitled to the waiver of fees, except administrative
fees.



The State shall collect government shares from income, rentals or other fees, as owner of the
Fesource and for its regulatory function. The guidelines to be formulated should ensure equitable
sharing between the national government and LGUs,

In order for the Department to prescribe appropriate and equitable fees for the use of water and
other forest resources by parlies/industries concemed for power generation, domestic and industrial
irrigation, carbon sequestration and biodiversity benefits respectively, by parties/industries
concemed taking into consideration natural resource valuation in the assignment of fees and
ensuring equitable sharing of benefits between concerned national government agency and LGU,
the Department shall initiate the creation of an inter-agency task force for this purpose.

SECTION 71. Timber Charges. There shall be collected charges on each cubic meter of timber
cut in forestlands, using direct and indirect values, whether belonging to the first, second, third
or fourth group, twenty-five percent (25%) of the actual freight of board (FOB) market price
based on species and grading: Provided, however, That, in the case of pulpwood and
matchwood cut in production forestland, forest charges on each cubic meter shall be ten
percent (10%) of the actual FOB market price

SECTION 72, Charges on Firewood, Branches and Other Recoverable Wood Wastes of
Timber. There shall be collected timber charges of one percent (1%) of the market price on
each cubic meter of firewood cut in production forestlands, 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, Provided, That the cutting of all mangrove species shall
be prohibited, Provided further, That only third of fourth group wood may be taken for firewood,
Provided finally, That, if jointly authorized by the Secretaries of both the Department and thé DA,
first and second group woods may be removed from land which is more valuable for agriculture
than for forest purposes, subject to the charges in the preceding section

SECTION 73. Charges on Non-Timber Forest Products. All other forest products of forestlands
which are not covered by the preceding section shall be exempted from any or all forest
charges, except rattans, gums resins, beeswax, guttapercha, almaciga, resin, bamboo, vines,
herbs, exudates and other species with commercial value, which shall be charged at ten percent
(10%) of the actual FOB market price. A

SECTION 74, Determination of Market Price of Timber and Non-timber Products. The actual
FOB market price of timber products snall be justly determined once a year by the Secretary
Provided, that the Secretary shall cause the creation of a committee to be composed of
representatives of the Department, the National Economic and Development Authority, the
Department of Trade and Industry, the Bureau of Internal Revenue and the wood and furniture
industry and consumers, LGUs, academe, NGOs and other concerned sectoral representatives
which shall formulate the. criteria and/or guidelines in the determination of the actual FOB
market price taking into consideration direct and indirect values to be used as the basis for the
assessment of the ad valorem tax, taking into consideration production cost (developing cost,
contingencies, and miscellaneous cost), species and grade of timber, government share,
reforestation, tariff duties, taxes, risk involved, and a reasonable margin of profit for domestic
and export market prices for timber and timber products.

Timber charges shall also be applied to naturally growing timber and timber products gathered from
alienable and disposable lands and private lands. Timber charges: collected shall be in lieu of the
administrative charge on environment and other fees and charges imposed. thereon: Provided, That
planted trees and other timber products harvested from industrial. timber plantations and private

26



lands covered by existing tiller or by approved land application are exempted from payment of
timber charges.

‘The duties incident to the measuring of timber products and the invoicing and collection of the
charges thereon shall be discharged by the LGU who shall likewise provide for the time, manner,
and place of payment of such charges under regulations of the Department.

SECTION 75, Fees for Administrative Services Rendered by the Department, Reasonable
fees shall be collected for various services rendered by personnel of the Department in
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, Provided further, That a
percentage of the fees collected shali support the furtherance of formal forestry education

SECTION 76. Forest Conservation and Development Fund (FCDF). A Forest Conservation and
Development Fund (FCDF) to be administered by the LGU is hereby established to provide
sustainable funds for forest protection, restoration and management, including the operations of
the municipal forest management boards, rehabilitation and preservation of watershed areas,
CBFM program, information and educational campaign as well as scholarship programs, policy
research and development. At least seventy percent (70%) 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 FCDF. The fund may be augmented by grants,
donations, endowment from various sources, domestic or foreign for purposes related to their
functions: Provided, That fees collected by the LGU consistent with the management plans
formulated shall directly accrue to the said LGU's account: Provided, further, that a portion of
the fees collected shall also go to the host. communities, which protect and maintain these
watersheds, from which the headwaters emanate.

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. The forest management board will recommend to the
Municipal Council the thrusts for fund allocation

SECTION 77. Fees from Payment for Environmental Services (PES). The ERDB shall

formulate @ certain value to environmental services, taking into account the positive and negative
spillovers of the use of such resources or externalities, 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 and negative externalities associated with a given ecosystem or a specific resource use.

CHAPTER IX

YREE PARKS

SECTION 78. 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) shall include the planting and maintenance of appropriate trees along the
road/highway or irrigation canals as landscaped 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 X

PROTECTION.

SECTION 79. Assistance of Law Enforcement Agencies. The LGUs and 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

SECTION 80. Role of Local Residents. It shall be incumbent upon LGUs concemed to render
assistance jn protecting and conserving forestlands within their respective territorial jurisdiction
Qualified local residents may be deputized by the LGUs 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 instances of citizens’ arrests.

SECTION 81. Prevention of Forest Fires. The concemed LGUs, in cooperation with the Bureau
of Fire Protection (BFP) and the Department, shall formulate and implement a fire prevention
and control program

SECTION 82. Control of Forest Pests and Diseases. 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 in the reforestation strategies.

SECTION 83. Prohibition on Genetically Engineered and Transgenic Trees. Planting/
introduction and/or use of genetically engineered (GE) and transgenic trees are prohibited in all
forestlands.

SECTION 84, Information and Rewards System. The LGU 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, When an information given leads to the seizure of logs or timber and other forest
product and results in a conviction, the informer shall also.be entitled to.twenty percent (20%) of
the gross value of the recovered or seized forest resource. The implementation of the rewards
system shall be in collaboration with the Department, the Forest Management Board and the



Philippine National Police

CHAPTER XI
RESEARCH, EDUCATION, TRAINING AND EXTENSION

SECTION 85. 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 State Universities and colleges shall, within
one (1) year from the passage of this Act, prepare a comprehensive sustainable national
forestry and environmental research and 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.

Appropriate funds shall be allotted for research and development

SECTION 86. 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
environment, forest and natural resources in the curricula for elementary and high school
education. The CHED shall likewise include mandatory 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. A percentage of appropriations
specified in Section 122 shall be set aside for this purpose.

SECTION 87. Formal Forestry, Agroforestry and environmental Education. The CHED, in
collaboration with the Department, the Board of Examiners for Foresters of the Professional
Regulations Commission (PRC), Philippines Forestry Education Network, Philippine
Agroforestry /education and Research Network, Environmental Education Network of the
Philippines and the duly accredited national professional foresters organization shall actively
pursue the rationalization. of formal forestry education by assigning higher weights on non-
timber extraction subjects, The licensure exam shall require minimum units on forest restoration
related subject 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 and
the country as a whole. The following areas shall be strengthened:

a. Sustainable forest management,

b. Natural resource management;

©. Biodiversity conservation;

d. Wildlife conservation;

, Wildlife management;

{. Entrepreneurship on non-timber forest resources;

g. Environmental laws;



h. Forest restoration technology;
i Environmental science; and
i. Community development

SECTION 88. 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 infrastructures to institutionalize non-formal continuing education
for the forestry sector.

SECTION 89. Training Centers. In coordination with TESDA, DepEd, CHED and State
Universities and Colleges (SUCs) and other relevant institutions, stakeholders and local
communities, 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 and restoration to forest guards, 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.

SECTION 90, Policy Research and. Development ‘Network. The Department, through the
Ecosystem Research and Development Bureau (ERDB), and in collaboration with the SUCs and
Private university and institutions, shall form part of a network to serve as the primary policy
research and development center for forestry and natural resources management. The Network
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.

CHAPTER XII
OFFENSES AND PENALTIES

SECTION 91. Non-Establishment of Tree Parks/Communal Forests. Any city, municipality or
subdivision owner who fails to establish tree parks as provided in Sections 76 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

SECTION 92. Harvesting, Gathering and/or Collecting Timber or Other Forest Products
without Authority. Any person who shall harvest, cut, gather, collect, or remove timber or other
forest products from any forestland, or timber from all forestlands, whether protection or
production forestlands, or inside alienable and disposable public land and private lands except
as provided, 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 (50,000.00): 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 addition 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

30



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 State.

SECTION 93. 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, shalll also
be punished with reclusion perpetua.

SECTION 94. Use of Illegally Cut Timber in Government Infrastructure Projects. Contractors
of government infrastructure projects shall obtain certification from the Department that the logs
‘or lumber to be used therein were obtained from legitimate sources. The use of illegally cut
naturally grown timber from protection forests or illegally cut timber from production forests in
government infrastructure projects shall be sufficient cause for the imposition of penalties
provided in Section 88, on harvesting of forest products without authority, and Section 89, on

illegal cutting as an economic sabotage, including the withholding of the payment to the
contractor.

SECTION 95. Grazing Livestock on Forestiands without a Permit. Any person found to have
caused the grazing of livestock in forestiands 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, and shall restore the affected area into the original state of the natural
resource; 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
automaticaly dismissed from office and permanently disqualified from holding any elective or
appointive position in the government service.

SECTION 96. Unlawful Occupation or Destruction of Forestiands. 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
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

ca



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 FCDF. 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, a .

SECTION 97. 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. 75 herein and Section 2 of Presidential Decree No. 953, 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
(P 100,000.00) 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 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 frorn which shall accrue to the FCDF. 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.

SECTION 98. 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 activities which are contrary to the criteria and standards established in
the rules and regulations promulgated by the Secretary thereof, 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



SECTION 99. 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 Two Hundred
Fifty Thousand Pesos (P250, 000.00) and confiscation of the sawmill or mini-sawmill and
complementary equipment in favor of the government for appropriate disposition.

SECTION 100. Unlawful Operation of Wood Processing Plants and Downstream
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 than 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 andlor other
downstream forest-based industries.

SECTION 101. Prohibition on the Issuance of Tax Declaration on Forestlands. ~ Any
public officer 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 perpetual disqualification from holding an
elective or appointive office. The tax declaration shall be considered null and void. Tax
declarations within protection forestlands shall be reviewed and be cancelled after due process.

SECTION 102. 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
(P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00).

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

SECTION 103. 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.

SECTION 104, 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 (80) 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
(P 100,000.00) 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

SECTION 105. Institution. of Criminal Action by Forest Officers. Any forest officer shall
arrest 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 committing the offense shall also be seized and confiscated in
favor of the government. The arresting forest officer shall thereafter deliver within thirty-six (36)
hours from the time of arrest or seizure both the offender and the confiscated forest products,
conveyances, tools and equipment, or the documents periaining 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 evidence 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,

SECTION 106. 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
dismissed from service with prejudice to reinstatement and with perpetual disqualification from
holding any elective or appointive office

CHAPTER Xill
ADMINISTRATIVE PROVISIONS
SECTION 107. Strengthening of the. Forest Management Sector. Only qualified

environmental management professionals and practitioners shall be appointed to the positions
of Director and Assistant Director of the FMB as well as to all other positions where the services



of professional foresters e.g. CENRO 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).

SECTION 108. 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 regulations, 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.

The Secretary may order that the sale of confiscated perishable forest resources at public
auction even before the termination of the judicial proceedings, following the applicable Rules on
Evidence, with the proceeds of such sale 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,

SECTION 109, Cancellation of Permits, Licenses, Agreements. The Secretary motu
proprio or upon the filing of a petition, may cancel any permit, license or agreement

SECTION 110. 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 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

SECTION 111. Authority of Forest Officers. When in the performance of their official
duties, forest officers or other government officials or employees duly authorized by the
Secretary or deputized as such 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, Provided further, That in cases where entry shall be in ancestral
domains/ancestral lands, said persons shall secure the free, prior and informed consent of the
ICCs/IPs therein. 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. :

SECTION 112. 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 with the terms and conditions stipulated in the
grant, contract or agreement, this Act, and pertinent laws, rules, and regulations,

SECTION 113. Transparency. Records, agreements, applications and all other pertinent
documents as well as conditions to the same shall be made available to the public at all times



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

SECTION 114, Other Incentives. Twenty percent (20%) of the value of confiscated
materials shall be used as incentives to informants, forest management council, forest
management boards, including Department personnel. They shall also be entitled to free legal
assistance should legal cases be filed against them in the performance of official duties.

SECTION 115, Suits and Strategic Legal Actions 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 113 of this Act, or against any person, institution or government agency that
implements this Act, there being no grave abuse of authority, it shall be the duty of the
investigating prosecutor or the court, as the case may be, to immediately make a determination
not exceeding thirly (30) days whether said legal action has been filed to harass, vex, exert
undue pressure or stifle such legal recourses of the person complaining of or enforcing 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.

SECTION 116, 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 {o 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

SECTION 117. 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

SECTION 118. Rule-Making Authority. In consultation with the NCIP, the DILG, the
Department of Finance, the leagues of provinces, cities, and municipalities, other government
agencies mentioned herein and other relevant stakeholders (i.e. academic institutions, NGOS),
the Department shall promulgate the implementing rules and regulations within one (1) year
from the effectivity of this Act.



SECTION 119. Congressional Oversight Committee. 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 shall be taken from the
appropriations of both the House of Representatives and the Senate.

CHAPTER XIV

FINAL PROVISIONS

SECTION 120, Transitory Provisions. 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; Provided, That cutting or felling of trees
in forests shall be prohibited, Provided further, thal such TLA, license, permits and other
instruments shall be terminated for the following grounds:

a.

.

©

When the licensee has been found to be a dummy of an otherwise disqualified or
unqualified person;

When the licensee has been found to be farming out the license or receiving royalty of
any kind;

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;

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

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

Failure to submit to the Department the required copies of auxiliary invoices covering
timber manifested under the license;

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;

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;

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;

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;

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

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



0. Allowing a contractor to operate the license area or concession; and
p. 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,
timber license agreement or any other similar instrument.

Provided, That the Department shall mediately take control of the land and consult with the
concerned LGU and/or local communities for the proper management of the area covered by the
said cancelled permit, TLA or instrument.

The relevant agencies shall formulate the appropriate rules and regulations for the implementation
of this Act,

SECTION 121. 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. Provided further that a share from
the VAT on oil and natural gas, emission testing tax, flood control tax, road users tax, and the
Reforestation, Watershed. Management, Health and/or Environment Enhancement Fund
pursuant to Section 4 of Republic Act No. 9136, otherwise known as the Electric Power Industry
Reform Act of 2001 (EPIRA), and its Implementing Rules and Regulations (IRR), shall be
appropriated to fund provisions in this 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 including the income derived from the shares from
the different modes of agreement.

SECTION 122. Separability Clause. Should any provision herein be declared
unconstitutional or invalid, the same shall not affect the validity or legality of the other provisions.

SECTION 123. Repealing Clause. Subsections (b), (a), (e), (), (9), 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, NIPAS law and the Wildlife Resources Act.

SECTION 124. 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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