TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B,
of t.'C
25 JUL29 Pino
SENATE
No.
RliCtiVtO 1
Introduced by SENATOR IMEE R. MARCOS
AN ACT
TO PROMOTE REFORESTATION AND TO INCREASE WOOD PRODUCTION 
THROUGH THE ESTABLISHMENT OF TREE GROWING AGREEMENT
EXPLANATORY NOTE
Section 16, Article II of the Constitution provides that, 'The State shall protect 
and advance the right of the people to a balanced and healthful ecology in accord with 
the rhythm and harmony of nature."
According to the Forest Management Bureau of the Department of Environment 
and Natural Resources, as of 2024, the Philippines has an annual domestic production 
of 825,000 cubic meters of wood, and an annual importation of 1,309,671 cubic meters 
of wood. As such, the Philippines import more than 60% of its wood demand. The 
Philippines currently has ten (10) million hectares (ha) of land for timber. As a tropical 
country, studies show that it has the capacity to produce at least 100 cubic meters per 
hectare of wood annually with a reasonable return on investment.
With the logging moratorium that banned the harvest and transport of trees 
from natural and residual forests for protection and preservation purposes, there is a 
need to promote tree plantations as a dominant source of local timber. However, 
existing regulations premised on the protection of natural and residual forests has the 
unintended outcome of discouraging investments in tree plantations and wood 
processing.
Promoting tree plantations can help meet the country's local wood demand to 
support the government's infrastructure projects and develop downstream wood 
industries such as furniture and housing construction. It can also decrease the country's 
reliance on imports and increase the contribution of the forestry sector to GDP. Jobs 
can be generated especially in the uplands where around 25 million Filipinos reside in 
poverty.


In order to address the concerns raised above, this bill aims to promote the 
development of tree farms nationwide by providing clear, simple, and investment- 
conducive policies and guideiines to the industry. It also establishes a tree plantation 
certification system for the registry and ease of implementation of the initiatives of this 
bill.
In view of the foregoing, the approval of this bill is earnestly sought.
e /l.
iMEeiCMA^OS/"


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c'--; t. i i,
TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
'f-’ff.rr nf li.r , '
25 JUL29 P1 no
SENATE
S.B. No. *7^^
Introduced by SENATOR IMEE R. MARCOS
AN ACT
TO PROMOTE REFORESTATION AND TO INCREASE WOOD PRODUCTION 
THROUGH THE ESTABLISHMENT OF TREE GROWING AGREEMENT
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
Section 1. Short Title. - This Act shall be known as the "Tree Growing Agreement
Act"
Sec. 2. Establishment of Tree Farms and Tree Plantations. — The Department 
of Environment and Natural Resources (DENR) shall identify, survey, and map areas 
suitable for the establishment of tree farms and tree plantations in forest lands. Such 
areas shall be called Tree Growing Agreement (TGA) Areas or TGA areas. TGA areas 
for establishment shall be denuded and/or underutilized areas within forestlands 
whether tenured or not, including ancestral lands/domains, identified as suitable for 
tree farming, tree plantation development, agroforestry, and other forestry and 
agroforestry-related economic activities. TGA establishment may be initiated by the 
DENR or through a request of interested parties.
Sec. 3. Criteria for the Determination of Tree Growing Agreement Areas. - The 
minimum requirements for suitability of the area for the TGA are:
a) Soil quality should be suitable for tree plantation/tree farming, and agroforestry 
farming;
b) Slope gradient should be below 50 percent, and elevation should be below 
1000m above sea level (asl);
c) Should not be prone to landslides or severe soil erosion; and
d) Should not be identified as protected area.


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Sec. 4. Identification and Deiineation of Tree Growing Agreement Areas. - For 
purposes of identification and delineation of area for TGA, the DENR shall identify 
denuded, idle, and/or underutilized public forest that are either tenured or untenured. 
These identified areas of public forest shall be divided into meridional forest blocks of 
fifteen (15) seconds of latitude and fifteen (15) seconds of longitude at approximately 
20.7 hectares per block. Such forest blocks shall be indicated in the maps publicly 
available in the Tree Growing Agreement Registry.
Sec. 5. Tenured Lands. - Forest lands covered by existing tenurial instruments 
may be covered by the Tree Growing Agreement. Existing tenurial instruments shall be 
automatically amended after a TGA has been executed between the DENR and the 
Agreement holder. Tenure holders who are no longer interested in their tenure may 
surrender their tenure to the DENR. They may also transfer such tenurial Instrument to 
an interested party for conversion to TGA. Tenure holders who refuse to utilize or 
abandon their tenurial area may be subjected to compulsory inclusion after being 
notified. A Notice of Inclusion under the TGA shall be issued by DENR to inform tenure 
holders of compulsory coverage of the whole or portion of their unutilized or abandoned 
tenured areas.
Sec. 6. Tree Growing Agreement Registry. - Forest lands that had been 
established by the DENR as TGA area shall be recorded and made available in a public 
registry to be maintained at the Provincial Environment and Natural Resources Office 
(PENRO) and supervised by the Forest Management Bureau (FMB). Such registry shall 
be accessible to the public through the internet and shall contain maps showing the 
location of all forest lands under TGA and shall also indicate forest lands that are already 
under an agreement as well as those still available for application of investors.
Sec. 7. Aiiowabie Activities for the Tree Growing Agreement. - Activities within 
the Tree Growing Agreement area shall be limited to:
a) Tree Plantation/Farming
b) Wood Processing/Establishment of Wood Processing Plants
c) Agroforestry
d) Forestry/Agroforestry-Based Ecotourism
Sec. 8. Tree Growing Agreement - Interested parties whether natural or 
juridical, may enter into a Tree Growing Agreement for the development, sustainable 
utilization, and management of TGA areas and forest resources within the allotted TGA 
area.


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The Agreement shall be for a minimum of two production cycles depending on 
the project as proposed in the development plan to be submitted to the DENR upon 
application for a TGA. The duration of the production cycle shall depend on the species 
intended to be planted as a main crop.
The Agreement may be renewed automatically at the option of the TGA holder 
for another minimum of two production cycles if the TGA holder has complied with the 
terms and conditions of the Agreement and with existing laws.
The TGA is transferrable to qualified transferees for value. The agreement may 
not be cancelled except for cause and with due process by the DENR. The Agreement 
holder shall develop at least 30% of the area applied for in the first three (3) years and 
utilize seventy-five (75%) of the area within five (5) years upon issuance of the TGA. 
Eighty percent (80%) of the TGA area must be devoted to the primary timber crop.
Changes in tenure arrangements on the forest land shall not affect the status of 
the TGA unless the consent of the TGA holder is granted.
Processing of applications and awarding and issuance of TGA shall be 
accomplished at the Provincial Environment and Natural Resources Office (PENRO) of 
the DENR and completed within 120 days from the time the complete application Is 
submitted.
Tree Growing Agreements shall be limited to a maximum of 25 forest blocks for 
Individuals/families, 50 forest blocks, for partnerships and cooperatives, and 250 forest 
blocks for private and public corporations Including local government units (LGUs) and 
government owned and controlled corporations (GOCCs).
Sec. 9. Qualifications of Applicants. - Any natural or juridical person may apply 
for a Tree Growing Agreement. LGUs and GOCCs may also apply for the said 
Agreement. Likewise, Agreement shall be awarded transparently and equitably to both 
foreign and domestic investors.
Sec. 10. Certifications/ Permits and Licenses. - Within sixty (60) days after the 
award of the Tree Growing Agreement, the DENR PENRO shall also coordinate with the 
Environmental Management Bureau (EMB), LGUs, and the National Commission on 
Indigenous Peoples (NCIP) for assistance in the expedited issuance of environmental 
permits, local permits, and the Certification Precondition (CP).


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Sec. 11. Property Rights ofTGA Holders. - All timber, trees, and other forestry
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and agroforestry products produced within TGA area shall be considered as personal
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property even if they are still attached to the soil. They shall also be considered as
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personal property of the holder within the purview of Republic Act No. 11057, otherwise
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known as the "Personal Property Security Act", and thus maybe traded or may be a
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subject to commodity contract, mortgage contract, and other security arrangement.
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Sec. 12. Relaxation of Restrictions and Regulations. - In order to promote
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investments and generate interest in forest related activities within the TGA areas,
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existing laws, executive issuances, local ordinances, rules and regulations are hereby
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repealed, amended, and modified accordingly for holders in order to:
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a) Allow only a one-time inspection by the DENR PENRO prior to harvest of trees
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leading to a single clearance for harvest, processing, transport and sale both
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local and international;
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b) Exempt from any clearance, the cutting, harvesting, gathering, collection and
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transport of non-timber forest products from the TGA area;
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c) Exempt established tree farms and plantations from logging bans for the
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duration of the agreement;
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d) Allow logs, lumber and other finished wood products from TGA area to be
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exported without restrictions in volume;
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e) Allow the acceptance of planted trees in TGA areas as collateral for loans in all
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banks and non-bank financial institutions;
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f) Allow insurance coverage of planted trees in TGA areas;
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g) Allow the issuance of an Environmental Compliance Certificate by the DENR for
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the entire TGA area even prior to the issuance of the TGA;
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h) Allow the Issuance of the Certification Precondition by the NCIP for the entire
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TGA area even prior to the issuance of the TGA;
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i) Allow exemption from payment of Advanced Value Added Tax (VAT). The VAT
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shall be paid only after logs have been 
delivered and payment received 
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plantation owners;
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j) Include tree farming and plantation development as pioneer areas of Investment
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under the Strategic Investments Priority Plan of the government;
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k) Include tree farming and plantation development in tax incentives as may be
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provided by existing rules and regulations of different government agencies
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including but not limited the Department of Finance and Department of Trade
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and Industry; and
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I) Include tree farming and plantation development in other investment incentive
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packages available for agriculture and agroforestry-related Industries. Provided


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that, relevant incentives shall also apply to private tree plantations registered
with the DENR.
Sec. 13. Royalties and Government Share. - Royalties and government share 
shall be based on the stumpage value of planted trees. Stumpage value shall be 
computed by the DENR using a formula developed with the approval of the Tree 
Plantation Promotion and Policy Board.
Royalties and government share shall be based on the 70% of gross revenues 
of the Agreement holder. The national government shall get five percent (5%) royalty, 
the tenure holder for tenured lands shall get one percent (1%), the concerned LGU 
where the TGA area is located shall get five percent (5%), if there are indigenous 
peoples in the area, two percent (2%) shall be allotted to them, and the remaining two 
percent (2%) shall go to DENR's tree plantation development programs and projects 
and carbon trading activities. Provided that, in the absence of IPs or tenure holders, 
the share allotted for them shall accrue to the DENR's account.
Sec. 14. Dispute Resolution Mechanism. - Disputes arising from conflicting 
claims and other controversies related to the issuance and the implementation of the 
TGA shall be resolved administratively in the first instance at the DENR.
Any and all disputes arising from the Implementation of TGA may be submitted 
to arbitration in the Philippines, in accordance with the relevant laws and policies. The 
process of arbitration shall be incorporated as a provision in the TGA that will be 
executed pursuant to the provisions of this Act, Provided that, upon consent of both 
parties, alternative modes of dispute resolution may be agreed upon.
Sec. 15. Premature Termination of the Agreement - Upon the premature 
termination of the agreement, at no fault of the holder, all depreciable permanent and 
semi-permanent improvements such as roads, buildings, and nurseries including the 
planted and standing trees and other forest crops, introduced and to be retained in the 
area, shall be properly evaluated and the holder shall be entitled to a fair compensation 
thereof, the amount of which shall be mutually agreed upon by both the DENR and the 
agreement holder, and in case of disagreement between them, by arbitration through 
a mutually acceptable and impartial third-party adjudicator.
Sec. 16. Tree Plantation Promotion and Policy Board. - The Tree Planation 
Promotion and Policy Board, referred to as the Board, is hereby created which shall be 
the overall policy-development body for all forest lands identified for TGA. It shall be


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responsible for setting the strategic direction of programs and projects and in creating 
an enabling policy and institutional environment TGA areas.
The Board shall be composed of the following:
1) Secretary of Environment and Natural Resources as Chairperson;
2) Secretary of Trade and Industry as Co-Chairperson;
3) One representative from the wood producers;
4) One representative from the tree farmers;
5) One representative from the wood processors;
6) One representative from the furniture industry;
7) One representative from the construction industry; and
8) One representative from the professional organization of foresters.
The principal members of the Board may designate their respective alternates, 
who shall be the officials next-ln-rank to them, and whose acts shall be considered the 
acts of their principals.
The presence of the Chairperson with four (4) other members of the Board shall 
constitute a quorum and a majority vote of the members present shall be necessary 
for the adoption of any issuance, order, resolution, decision or other act of the Board 
in the exercise of its functions.
The Board shall act as a collegial body. In the conduct of meetings, the 
Chairperson shall not vote except to break a tie. The Board shall act on any matter for 
its consideration not later than thirty (30) days from the date of submission thereof.
The members of the Board shall be entitled to honoraria based on existing 
government accounting and auditing rules and regulations. The DENR shall act as 
Secretariat to the Board.
Sec. 17. Appropriation. — The amount needed for the implementation of this 
Act shall be included in the General Appropriations Act (GAA).
Sec. 18. Impiementing Ruies and Regulations. - The FMB shall promulgate the 
necessary rules and regulations to carry out the provisions of this Act within ninety (90) 
days from approval hereof.
Sec. 19. Separability Clause. - If any provision, or part hereof, is held invalid or


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unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting.
Sec. 20. Repealing Cause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or 
inconsistent with, the provisions of this Act is hereby repealed, modified, or amended 
accordingly.
Sec. 21. Effectivity Cause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved,