} soust oF RepResentarives
RECEIVED

30 JUN 201g
ee

Republic of the Philippines
HOUSE OF REPRESENTATIVES = pyui
Quezon City

Fim
BY:

SEVENTEENTH CONGRES!
First Regular Session
REC! ATION UNIT

House Bill No. 49) par sanp INDEX SERVICE

Introduced by Rep, LAWRENCE LEMUEL H, FORTUN

EXPLANATORY NOTE

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

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

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

The highlights of this measure are to establish guidelines for the identification of
harmful substances including emission of oil, noxious liquid substances and other
harmful substances, It also seeks to set emission standards for ships plying Philippine
seas. The bill likewise seeks to establish a Marine Pollution Adjudication Board that
has quasi-judicial powers and exclusive jurisdiction over all marine pollution cases.

‘A version of this measure, filed in the 15" and 16" Congresses, had had its success in
the legislative mill short of passage into a law. It is prayed that in the 17" Congress,
this measure is finally passed and approved into a law.

ig bill is eanesfly sought.

In view of the foregoing considerations, approval of t


eu aun erwone

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, -___ 49

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

AN ACT
TO PREVENT AND CONTROL POLLUTION FROM SHIPS, PROVIDE
PENALTIES THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
CHAPTER 1

General Provisions

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

Section 2, Declaration of Policy. - In pursuit of the constitutional mandate
to protect and advance the right of the people of the people to a balanced and healthful
ecology in accord with the rhythm and harmony of nature, the State shall prevent and
control pollution resulting from the operations of ships.

It shall likewise implement the Convention as herein defined, including its
amendments and protocols that have been ratified by the Philippines.

Section 3. Definition of Terms. - As used in this Act:

(a) Atmospheric discharges or emission from ships refer to any discharge

or emission of nitrogen oxides, sulfur oxides, volatile organic
compounds and other ozone depleting substances when the discharges

do not meet the requirements of the Convention;


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(b)

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(d)

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

Coastal state refers to the relationship of the Philippines to a foreign-

flagged vessel traversing Philippine waters and its corollary right to

exercise jurisdiction and regulatory control over the vessel;

Convention refers to:

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

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

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

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

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

Discharge refers to any release, however caused, of ‘harmful

substances from a ship, including any escape, disposal, spilling,

leaking, pumping, emitting or emptying of the substances, except:

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

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

Dirty ballast refers to water carried in the cargo tank;

Flag state refers to the relationship of the Philippines to vessels

registered under its flag and corollary right to exercise jurisdiction and

regulatory control over these vessels;


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Foreign-flagged ship refers to any ship registered in another State or
authorized to fly it flag, whether or not it is a State party to MARPOL
73/78, when found in any of the ports, terminal facilities or waters
within the jurisdiction or sovereignty of the Philippines;
Garbage refers to all kinds of victuals, domestic and operational
wastes, excluding fresh fish and parts thereof, generated during the
normal operation of the ship and liable to be disposed of continuously
or periodically;
Harmful substance in packaged form refers to those substances which
are identified as marine pollutants in the International Maritime
Dangerous Goods (IMDG) Code and are held in forms of containment
specified for harmful substances in the IMDG Code, Other harmful
substances in package form shall include substances identified in
accordance with the following criteria as provided in the Convention:
(1) Those which are bio-accumulated to @ significant extent and
known to produce a hazard to aquatic life or to human health; or
(2) Those which are bio-accumulated with attendant risk to aquatic
organisms or to human health with a short retention of the order
of one (1) week or less; or
(3) ‘Those which are highly toxic to aquatic life;
Incident refers to an event involving the actual or probable discharge
into the sea, or emission into the atmosphere, of a harmful substance or
effluents containing such a substance;
Marine casualty refers to any accident or incident of navigation which
results in producing a harmful, deleterious or damaging effect upon the
marine environment;
Master refers to any person having command or charge of any ship,
including a boat captain;
Noxious liquid substance refers to any substance identified as such
under the relevant chapter of the International Bulk Chemical Code
and/or provisionally assessed as such be Annex Tl of the Convention;
Oil refers to petroleum in any form including crude oil, fuel oil, sludge,
oil refuse and refined products, other than petrochemicals which are

classified as noxious liquid substances in accordance with Annex II of


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the Convention, and including substances listed under Annex I of the
Convention;

Oily mixture refers to a mixture with any oil content;

Oil tanker refers to a ship constructed or adapted primarily to carry oil
in bulk in its cargo spaces and includes combination carriers or any
other tanker when it is carrying cargo or part cargo of oil in bulk;
Other harmful substances refers to any substance other than oil,
noxious liquid substances, harmful substances in package form,
garbage, and sewage, which, if introduced in the sea, is liable to create
hazards to human health, harm living resources and marine life,
damage amenities or to interfere with other legitimate uses of the sea,
and includes atmospheric discharges and other substances identified as
marine pollutants in the Convention, which may be subject to control
pursuant to the provisions of this Act and other relevant environmental
laws of the Philippines;

Owner refers to the person registered as the owner of the ship or who
assumes the operation of the ship, or, in the absence of registration, the
person owning the ship or the bareboat charterer of the ship, and, in the
case of a ship owned by a State and operated by a company which in
that State is registered as the ship’s operator, “owner” shall include
State;

Philippine ship refers to any ship registered under the laws of the
Philippines and entitled to fly its flag wherever the ship may be;
Philippine waters refers to the internal waters, archipelagic waters,
territorial seas, waters within the contiguous and exclusive economic
zones;

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

Sewage refers to:

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


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2) Drainage from medical premises including dispensary and sick bay
through wash basins, wash tubs and scuppers located in the
premises;

(3) Drainage from spaces containing living animals; or

(4) Other waste waters when mixed with the drainages defined above;
(%) Ship refers to a vessel of any type operating in the marine environment

and includes pleasure crafts, fishing vessels, hydrofoil boats, air~

cushion vehicles, submersibles, floating crafts, drilling rigs and fixed

or floating platforms; and

() Undue delay refers to a delay that is unreasonable and unnecessary in

light of the particular conditions of the ship, the ship's cargo,
destination and schedule, and in light of the purpose and scope of the
investigation, inspection or other cause for detaining the ship.
CHAPTER 2
Scope and Application

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

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

(b) All foreign-flagged ships in Philippine waters, whether or not they are

registered with State parties to the Convention; and

(©) All other ships operating within Philippine waters: Provided, That the

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

Section 5. Exemptions, ~ This Act shall not apply to warships, naval
auxiliary ships, and man-of-war vessels: Provided, That all government or
noncommercial ships shall be exempted from the coverage of this Act during
emergeney response cases: Provided, however, That the DOTC, through the Maritime

Industry Authority (MARINA), the Philippine Coast Guard (PCG) the Philippine


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Ports Authority (PPA), and other concemed agencies, shall adopt appropriate
measures that will ensure that these ships operate, so far as is reasonable and
practicable, in a manner consistent with this Act: Provided, finally, That the measure
will not impair the operational capabilities of these ships.

CHAPTER 3

Exercise of Jurisdiction Over Ships

Section 6. Powers and Functions of the Department of Transportation and
Communications (DOTC). - The DOTC shall be the principal government agency
responsible for the overall implementation and enforcement of this Act and any
requirement of the Convention. For this purpose, the Secretary of the DOTC shall
exercise the following general powers and functions:

(a) Oversee the implementation of this Act and coordinate the efforts
of concemed agencies;

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

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

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

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

Section 7. Powers and Functions of the Maritime Industry Authority
(MARINA) ~The MARINA shall have the sole and exclusively authority and
responsibility to ensure that environmental and pollution regulations and standards for
the construction and equipment of Philippine vessels, before they are allowed to fly
the Philippine flag, and/or as part of their registration, are complied with. For this
purpose, the MARINA shall have the following duties and functions:

(a) Ensure that all Philippine ships are constructed and equipped with

any fitting, material, appliance or apparatus deemed appropriate


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(b)

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(e)

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(8)

(h)

and effective for the prevention of any discharge or emission of
harmful substances in consonance with the requirements of the
Convention;
Survey all Philippine ships for purposes of the provisions of the
immediately preceding paragraph, which function may be
delegated to MARINA-recognized organization through a
deputation process to be formulated pursuant to this Act:
Provided, That, except for direct replacement, no change in the
ship’s structure, equipment, fittings, arrangement and materials
shall be made without the approval of the MARINA;
Issue the required statutory certificates to all Philippine ships;
Review and revise, whenever appropriate, the existing system of
certification, survey, inspection and monitoring of ships, with
respect to pollution prevention to ensure efficiency and
transparency, consistent with the overall management of the
maritime sector and in accordance with the requirements of the
Convention;
Conduct surveys and issue certificates of endorsements to foreign
ships registered with another State party, if so requested by a
State which is a party to the Convention;
Require ships to keep and maintain relevant record books in
accordance with the Convention;
Suspend, withdraw or revoke any certificate it may have issued to
any Philippine ship found not compliant with this Act and with
rules and regulations promulgated therefor;
Accredit, appoint and authorize recognized organizations to act
on its behalf and, for this purpose, execute the requisite
memorandum of agreement defining the extent of powers that
may be exercised by the recognized organizations including the
following:
(1) Perform and conduet statutory surveys on Philippine ships;
2) Require repairs on a Philippine ship pursuant to finding
resulting from port state inspection;

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


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(4) Withdraw any statutory certificates if appropriate corrective
action is not taken by the Philippine ships;
Provide the International Maritime Organization (IMO) with a list
of recognized organizations authorized to act on behalf of the
Philippines, together with the specific responsibilities they are
empowered to perform and the conditions of the authority
delegated to them;
Impose, fix, collect and receive, in accordance with the duly
approved schedules, fees necessary for the survey and
certification of ships pursuant to this section, The fees shall be
imposed and collected in order to recover the cost for rendering
the service and shall not be used in order to impose a penalty:
Provided, That excessive fees, multiple fees and duplicative fees
shall at all times be avoided;
Issue rules and regulations necessary to implement the provisions
of this section: Provided, that the rules shall be in consonance
with the Convention and shall not change or in any way amend or
be contrary to the intent and purposes of this Act;
Provide its officers and personnel with adequate training and
continuing education to ensure an efficient and professional
pollution regulatory machinery;
Impose and collect fees and charges in connection with the
performance of its functions under this section, which fees and
charges shall accrue to the Marine Environmental Management
Fund (MEMF) established under Section 42 of this Act
Provided, That the fees shall be imposed and collected in order to
recover the cost for rendering the service and shall not be used in
order to impose a penalty: Provided, further, That excessive fees
multiple fees and duplicative fees shall at all times be avoided;
Hear, adjudicate and impose such fines and penalties on
Philippine ships which shall fail to comply with the rules and
regulations issued pursuant to this section; and
Exercise powers and perform other functions as may be necessary

to carry out its duties and responsibilities under this Act.


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Section 8. Powers and Functions of the Philippine Coast Guard, — Unless
otherwise provided under Section 9 of this Act, the Philippine Coast Guard (PCG)
shall have the sole and exclusive authority and responsibility to enforce
environmental and pollution regulations and standards to all ships which may be
operating within Philippine waters, or in ports, terminal facilities or harbors. It shall
include the authority to board and inspect ships to ensure compliance with such
regulations and standards.

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

(a) Ensure that all ships are operated and certificated in accordance

with the requirements of the Convention;

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

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

@ Investigate any complaint involving the alleged violation of the
Convention committed by a ship regardless of source of the
complaint or the location of the violation and request. the
submission of evidence which the complainant may have

regarding the alleged violation;

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

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

(g) Requite a ship to proceed to the nearest repair yard and ensure that

the ship does not leave until it can proceed to sea without posing
an unreasonable threat or harm to the marine environment;

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

(i) Inform the complainant and the IMO of the results of the
investigation and any action taken against the ship operator of the

Philippine ship in respect of any alleged violation;


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Deny entry of a foreign-flagged ship to any Philippine port or

terminal facility if it fails to comply with the requirements of the

Convention;

Coordinate with, and inform, the diplomatic representative of the

State, or the flag state administration, of any violation of the

foreign ship and any action taken against the ship;

Inspect, verify and investigate a ship if it has discharged any

harmful substance into the marine environment under any of the

following circumstances:

1, It has reasonable grounds to believe that a discharge has
‘occurred in Philippine waters;

2. It receives a report from another coastal State; or

3, It receives a request from the flag State,

Forward the report of any violation committed by the ship, with

respect to any discharge of harmful substances into marine

environment, to the ship's flag state administration, together wit

any evidence it may have;

Immediately inform any affected coastal State of the discharge;

Ensure that the ship is not unduly delayed or detained;

Order into port any ship found in the territorial seas if there are

clear grounds to believe that the ship has discharged harmful

substances into the marine environment,

Establish procedures for reporting incidents involving any actual

or probable discharge or emission which may be in violation of

this act and of the requirement of the Convention consistent with

the reporting requirements under this Act;

Require all ships and aircrafts registered under the Philippine flag

to immediately report any marine casualty witnessed while

navigatin;

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

Cooperate with the government of other States which are members

of international organization on the prevention of pollution from


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(DENR) ~

functions:

ships concerning the detection of violations and enforcement of
this Act using all appropriate and practicable measures of
detection and environmental monitoring, adequate procedures for
reporting and accumulation of evidence;

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

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

(w) Administer the MEMF;

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

\y) Exercise powers and perform other functions as any be necessary
to carry out its duties and responsibilities under this Act.

Section 9. Role of the Department of Environment and Natural Resources

‘or purposes of this Act, the DENR shall have the following powers and

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

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

(c) Set effluent and emission standards for ships in accordance with the
requirements of the Convention;

(4) The floating crafis, drilling rigs and fixed or floating platforms, and
vessels which primarily operate or undertake business, commercial, or
industrial activities while anchored, the DENR shall enforce, in
coordination with the PCG, the applicable provisions of Presidential

Decree No. 1586, otherwise known as the Environmental Impact


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Statement System law; Republic Act No. 8749, otherwise known as the
Philippine Clean Air Act of 1999; and Republic Act No. 9275, otherwise
known as the Philippine Clean Water Act of 2004; and

(e) Monitor, in coordination with the PCG, hazardous and radioactive wastes
being transported by ships in the country, and prevent the disposal thereof

and/or the entry of ships carrying the same.

CHAPTER 4
Prevention of Pollution From Ships

Section 10. Prohibition of Discharge or Emission of Harmful Substances.

— It shall be unlawful for any person to discharge or emit the following substances

from any Philippine ship, or from any other ship while it is within Philippine waters:

(a) Oil, whether carried as cargo or as bunker;

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

(c) Noxious liquid substances carried in bulk;

(d) Harmful substances in packaged form;

(e) Sewage;

(f) Garbage; and

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

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

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

(3) The discharge is for the purpose of combating specific pollution incidents
in order to minimize the damage from pollution.
For this purpose, the DOTC shall promulgate rules and regulations to

implement the immediately preceding paragraph as regards its application


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in general, or with respect to the following considerations in consonance
with the requirements of the consonance with the requirements of the
Convention:
(i) Classes of ships;
(ii) Description of harmful substances;
(iii) Disposal or discharge of these substances in prescribed
circumstances; and
(iv) Areas of the sea,
Section 11, Immediate Report of Discharge of Harmful Substances. ~ If any
actual or probable discharge of any harmful substance occurs from any Philippine

into any part of the sea or atmosphere the master shall immediately report the

incident to the nearest affected coastal State and to the DOTC.
If any actual or probable discharge of any harmful substance occurs from any
Philippine ship or foreign-flagged ship while it is operating in Philippine waters, the
master of the ship shall immediately report the incident to the PCG. The PCG shall
immediately inform the flag State of the ship
If the master of the ship fails to report the incident, or the discharge occurs in
circumstances where the ship, or the agent of the owner, charterer, manager and

operator of the ship shall without delay, report the incident to the DOTC.

SEC. 12, Record Books. ~ Philippine ships and all ships within Philippine
waters shall maintain on board record books in the English language, whether as part
of their official logbook or nor. For this purpose:

(a) Every oil tanker which is one hundred fifty (150) gross tonnage or more
and every ship, other than an oil tanker which is four hundred (400) gross
tonnage or more shall be provided with, and shall be required to maintain,
an Oil Report Part I for Machinery Space Operations in accordance with
the requirements of the Convention;

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

requirements of the Convention;


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(c) Every chemical tanker shall be provided with, and shall be required to
maintain, a Cargo Record Book in accordance with the requirements of the
Convention; and

(d) Every ship which is four hundred (400) gross tonnage or more and every
ship which is certified to carry fifteen (15) persons or more shall be
provided with, and shall be required to maintain a Shipboard Garbage

Management Plan in accordance with the requirements of the Convention.

SEC. 13 Reception Facilities, ~ Port authorities shall ensure that public and
private ports and terminal ports in the Philippines are appropriately and adequately
provided with facilities to meet the needs of ships for the reception of their oily
residues, oily mixtures, dirty ballast, tank washing water, noxious liquid substances,
sewage, garbage, ozone depleting substances, and equipment containing these
substances, and for cleaning of exhaust gases in consonance with this Act and the
requirements on the Convention,

For this purpose, port authorities shall : (a) determine and establish the most
effective and efficient means for meeting internationally ~accepted requirements with
respect to reception facilities in public and private ports without causing such ships
undue delay; (b) formulate and implement an integrated waste management system
for the use and operation of reception and treatment facilities in coordination with the
DENR and the PCG; and (¢) coordinate with the DENR and concemed local
government units (LGUs) on the proper handling and disposal of wastes collected at
ports,

Port authorities may accredited or enter into agreements with private entities
in relation to the establishment and operation of reception and treatment facilities
upon verification of compliance with standards established for said facilities by the
DENR and PCG.

SEC. 14. Use of Reception Facilities. ~ All ships entering or availing the
services of ports, terminals and repair reports shall use reception facilities established
pursuant to the immediately preceding section, subject to the integrated waste

management system to be established by port authorities.


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SEC. 15. Denial of Entry, - Should there be a probability that a foreign-
flagged ship has violated or may violate the requirements of this Act, or the rules and
regulations promulgated therefor, the ship may be denied entry to any port in the

Philippines

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

(a) The fine or fines imposed on ship, owner or operator of the ship pursuant to

Chapter 5 of this Act, except those imposed for violations of administrative

regulations under Sections 127, 28 and 29 of this Act, have not been paid;

(b) The condition of the ship does not substantially correspond with what is
in the ship's certificates;
(c) The ship does not hold valid ship certificates;
(d) There are reasonable or probable grounds to believe that:
(1) the ship incurred a pollution cost liability under Section 33 of this Act;
(2) the ship violated any of the requirements of this Act or rules and
regulations promulgated therefore; and
(3) the ship caused harm or damage or exhibited a reasonable environmental

threat to the marine environment.

A ship detained under paragraph (4) of this section may be released after the
owner of the ship posts with the Marine Pollution Adjudication Board (MPAB)
established under Section 35 of this Act, an adequate cash bond, insurance guaranty,
or protection indemnity guaranty or a combination thereof, as approved by the
MPAB, to cover the liability of the owner, master or agent of the ship under this Act.

CHAPTER 5

FINES, PENALTIES, AND LIABILITIES
SEC. 17. Imposition of Finances, Penalties and Liabilities. Except for fines
and penalties for violations of administrative regulations under Section 27, 28 and 29
of this Act, all fines and penalties imposed for violations of the provisions of this
Chapter, or the Philippine Clean Air Act and the Philippine Clean Water Act,
whenever applicable, shall be imposed by the MPAB established pursuant to Section

35 of this Act.


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For this purpose, an appropriate fine rating system shall be established by the
MPAB, taking into consideration degree of willfulness, negligence or recaleitrance of
the master, owner or operator of the ship, their history of noncompliance and the

gravity of the damage caused by the ship to the environment

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

(a) In the case of a Philippine ship, unless the discharge or emission is

committed and appropriately fined in other States’ jurisdiction:

(1) For oil or oily mixture under paragraphs (a) and (b) of Section 10 of
this Act - not less than Two Hundred Thousand Pesos (Php
200,000.00) but not more than Ten Million Pesos (Php10,000.00);

(2) For noxious liquid substances or harmful substances in packaged form
under paragraphs (¢) and (d) of Section 10 of this Act ~ not less than
‘Two Hundred Thousand Pesos (Php200,000,00) but not more than Ten
Million Pesos (Php10,000,000.00);

(3) For sewage or garbage under paragraphs (e) and (f) Section 10 of this
Act- not less than Fifty Thousand Pesos (Php50,000.00) but not more
than Two Million Pesos (Php2,000,000.00); and

(4) For other harmful substances as defined in this Act ~ not less than Two
Hundred Thousand Pesos (Php200,000.00) but not more than Ten
Million Pesos (PHp10,000,000.00).

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

(1) For oil or oily mixture under paragraphs (a) and (b) of Section 10 of

this Act not less than Fifty Thousand US dollars (US$50,000) but not

more than Five Million US dollars (US$5,000,000), or its equivalent in
Philippine pesos;

(2) For noxious liquid substances or harmful substances in packaged from

under paragraphs (c) and (d) of Section 10 of this Act - not less than

Fifty Thousand US dollars (US$50,000.00) but not more than Three


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Million US dollars (US$3,000,000.00), or its equivalent in Philippine
pesos;
(3) For sewage or garbage under paragraphs (e) and (f) of this Act ~ not
less than Ten Thousand US dollars (US$10,000,00) but not more than
One Million US dollars (US$1,000,000.00), or its equivalent in
Philippine pesos; and
(4) For other harmful substances as defined in this Act ~ not less than Fifty
Thousand US dollars (US$50,000.00) but not more than Five Million
US dollars (USS5,000,000,00), or its equivalent in Philippine pesos.
Any person directly or negligently responsible for the discharge or emission
into Philippine waters or a atmosphere shall be liable for a fine of not less than Five
Thousand Pesos (Php5,000,00) but not more than Five Million Pesos
(Php5,000,000.00) and, whenever appropriate, to the costs any measure reasonably

taken in removing or eliminating the discharged or emitted substances.

Unless the fines and penalties established under Environmental Impact
Statement System Law, the Philippine Clean Air Act and the Philippine Clean Water
Act are higher, the fines set in this Act shall be imposed for floating craft, drilling rigs
and fixed or floating platforms, and vessels which primarily operate or undertake

business, commercial or industrial activities while anchored,

SEC. 19, Failure to Maintain Record Books. ~ (a) A ship which operate
without record books required under Section 12 of this Act or fails to maintain said
record books on board shall be liable to pay a fine of Two Hundred Thousand Pesos
(Php200,000.00); (b) Any person who fails to comply with the provisions of Seetion
12 of this Act or the rules and regulations promulgated therefor shall be liable to pay a
fine not more than Five Thousand Pesos (Php$,000.00) but not more than Five

Hundred Thousand pesos (Php500,000.00).

SEC. 20, Refusal to Use Reception Facilities. ~ A ship which unjustifiably
refuses to use reception facilities shall be liable to pay a fine of not less than Ten
Thousand Pesos (Php10,000.00) but not more than Five Hundred Thousand Pesos
(Php$00,000.00): Provided, That disposal of oil in reception facilities shall be

required upon determination by the PCG.


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SEC, 21. Absence of and Noncompliance with Shipboard Garbage
Management. - If a ship operates without a shipboard garbage management plan as
required under the Convention or fails to operate in accordance with such plan, it shall
be liable to pay a fine of not less than Ten Thousand Pesos (Php10,000.00) but not
more than Two Hundred Thousand Pesos (Php200,000,00).

SEC. 22. Unauthorized Change in the Ship's Structure, Equipment,
Fittings, Arrangements and Materials, ~ Unless authorized under this Act or the

Convention, any ship owner who made or caused an

change in the structure,
equipment, fittings, arrangements and materials of the ship without the approval of the
MARINA shall be punished by a fine of not more than Ten Thousand Pesos
(Php 10,000.00) but not more than One Hundred Thousand Pesos (Php100,000.00)..

SEC. 23. Operating Without the Required Certification. ~ A ship which is
operated or is allowed to operate without the certification required under this Act or
the Convention shall be detained and shall be liable for a fine of not less than Ten
Thousand Pesos (Php!0,000.00) but not more than Five Hundred Thousand Pesos
(Php500,000.00).

SEC. 24, Violation of Detention Order, - A ship which proceeds to sea in

violation of a detention order issued pursuant to Section 16 hereof shall be liable to
the following fines:
(a) Philippine ship ~ not less than Ten Thousand Pesos (Php10,000.00)
but not more than One Million Pesos (Php1,000,000.00); and
(b) Foreign-flagged ship — Not less than Five Million US dollars

(US$5,000,000.00), or its equivalent in Philippine pesos.

SEC. 25, Continuing Violation. ~ A ship, which continuously discharges or
emits harmful substances in violation of Section 10 of this Act, shall be held liable for
the fines stipulated under Section 18. Likewise, it shall be made liable to pay an
additional fine of not less than Ten Thousand Pesos (Php10,000.00) but not more than
Two Hundred Thousand Pesos (Php200,000.00) for every day or part thereof during

which the violation continues to be committed.


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SEC, 26. Obstruction of Investigation. — Any person who shall, without
justifiable reason, obstruct or hamper the conduct of an investigation of a violation of
this Act shall shall be liable to pay a fine of not less than Ten Thousand Peso
(Php10,000.00) but nor more than One Hundred Thousand Pesos (Php1 00,000.00)

SEC. 27. Neglect of Duty. - Any government official or employee charged
with the responsibility of enforcing any provision of this Act, who is found guilty of
gross negligence of duty, shall be dismissed from the service with prejudice to
reinstatement. Neglect of duty shall be prosecuted in accordance with existing laws.

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

SEC. 29. Violations of Administrative Regulations. — Any person who
commits or omits acts in violation of rules and regulations issued by concerned
agencies pursuant to this Act, unless the violations are otherwise covered under
Section 19 to 28 hereof, shall be liable to the following fines:

(a) First violation - a fine of not less than One Thousand Pesos
(Php1,000.00) but not more than One Hundred thousand Pesos
(Php100,000.00);

(b) Second violation ~ a fine more than One Hundred Thousand Pesos
(Php100,000.00) but not more than Two Hundred Thousand Pesos
(Php200,000.00); and

(©) Third violation — a fine more than Two Hundred Thousand Pesos
(Php200,000.00) but not more than One Million Pesos
(Php1,000,000.00) and the suspension of vessel safety certificate
for sis (6) months to one (1) year.

‘The concerned agency shall promulgate rules and regulations for the summary

imposition of administrative sanctions, subject to due process, for failure to comply


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with any order, decision, rules and regulations of the Department issued pursuant to

this Act shall accrue to the MEMF

SEC, 30. Intentional Violation - In case the discharge or emission of harmful
substances or toxic pollutants identified pursuant to Republic Act No, 6969, otherwise
known as the “Toxic Substances and Hazardous and Nuclear Wastes Control Act of
1990”, is in toxie amounts or is deliberate and willful, in violation of Section 10 of
this Act, the offender, without prejudice to the civil liability that may be imposed,
shall be accordingly liable for a fine or imprisonment or not less than six (6) years,

but not more than twelve (12) years, or both, at the discretion of the court:

(a) Philippine ship ~ not less than Fifty thousand pesos
(Php30,000.00) but not more than Twenty million pesos
(Php20,000,000.00); and

(b) Foreign-flagged ship — not less than Fifty thousand US
dollars (US$50,000.00) but not more that Eight Million US
dollars (US$8,000,000,00), or its equivalent in Philippine

Pesos.

SEC, 31. Automatic Adjustment of Penalties and Fines, ~ The fines
prescribes in this Act shall be automatically increased by ten percent (10%) every
three (3) years from the effectivity of this Act

SEC. 32. Clean-up Operations. ~ In the event harmful substances, under
Section 10 of this Act are discharged or emitted from any ship into Philippine waters
or into any part of the sea or waters outside Philippine waters but such substances
subsequently flowed or drifted into Philippine waters, or into the Philippine
atmosphere, the PCG, in coordination with other agencies concerned, shall be
responsible for the cleanup and containment of discharged substances, and the
prevention or mitigation of the resulting damage to the environment , human health,
tourist and fishing industries, public and private properties: Provided, The necessary
initial cleanup and containment shall be made by the owner of the ship which

discharged or cause the discharge of such harmful substances.


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SEC. 33. Cost Liability for the Discharge or Emission of Harmful Substances. - The
owner of the ship liable for the discharge of harmful substances under Section 32
hereof shall be primarily responsible for the following pollution costs:

(a) Reasonable expenses that the PCG and other agencies concerned
may reasonably undertake or has undertaken pursuant to the
immediately preceding section; and

(b) Environmental damages and/or other reasonable measures taken
for environmental rehabilitation,

In case the responsibility for the above pollution cost liability falls on two (2)
or more ships, and the liability of each of the owners thereof cannot be reasonably
distinguished from that of the other, each of the owners shall be jointly and severally
liable for the whole amount of the cost.

Republic Act. No. 9483, otherwise known as the Oil Pollution Compensation
Act of 2007, shall govern the civil liability for the discharge of oil, including the oily

mixture, discharged as part of the incident under the said Act.
Reimbursement of the cost incurred shall be made to the MEMF or to such

other funds where disbursements were sourced,

SEC. 34. Informer’s Reward to Persons Instrumental in the Discovery of
Violations of this Act. ~ Any person with the exception of the officials or employees

of the DOTC, the DENR, the LGUs, the MARINA, the PCG or port authority or their

relatives with the sixth degree of consanguinity, who voluntarily gives definite and
sworn information, not yet in the possession of the MARINA or the PCG, leading to
the discovery of the violation of this Act and resulting in the imposition of fines or
fees, or conviction of the guilty party of any of the fines or penalties, shall be
rewarded a sum equivalent to ten percent (10%) of the fines or fees paid or recovered,
CHAPTER 6
Marine Pollution Adjudication Board

SEC. 35. Marine Pollution Adjudication Board.- There is hereby

-d with quasi-judicial

constituted a Marine Pollution Adjudication Board (MPAB) v‘
powers under the Office of the DOTC Secretary. ‘The Board shall have sole and
exclusive jurisdiction over all marine pollution cases as provided for in Section 17 of

this Act. It shall be composed of the following members:


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(a) Secretary of the DENR, or his duly authorized permanent
representative; as Chairperson
(b) Secretary of the DENR, or his duly authorized permanent
representative;
(c) Administrator of the MARINA, or his duly authorized permanent
representative;
(@) Commandant of the PCG, or his duly authorized permanent
representative;
(ec) General Manager of the PPA, or his duly authorized permanent
representative;
(f) A permanent representative endorsed by the Association of Masters
and Mates;
(g) A permanent representative endorsed by the Marine Engineers
Association;
(h) A member of the Philippine Bar duly endorsed by the Integrated
Bar of the Philippines (IBP); and
(i) A member of the Sea Transport Association.
The grant of honoraria to members of the MPAB shall be subject to existing

laws, accounting and auditing rules and regulations.

SEC. 36. Powers and Functions.- The MPAB shall have the following powers

and functions:

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

(b) To conduct hearings on all matters within its jurisdiction, proceed to
hear and determine the disputes in the absence of any party thereto who
has been summoned or served with notice to appear, conduct its
proceedings or any part thereof in public or in private, adjourn its
hearings at any time and palace, refer technical matters or accounts to
an expert and to accept the experts’ reports thereon as evidence after
hearing of the parties upon due notice, direct parties to be joined in or
excluded from the proceedings, correct amend or waive any error,

defect or irregularity, whether in substance or in form, give all such


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directions as it may deem necessary or expedient in the determination of
the dispute before it and dismiss the dispute as part thereof, where it is
trivial or where further proceedings by the Commission are not
necessary or desirable;

(c) To promulgate and adopt its own rules of procedure. It shall not be
strictly bound by the Rules of Court but shall proceed to hear and
decide all cases, disputes or controversies in a most expeditious
manner, employing all reasonable means to ascertain the facts of every
case in accordance with justice and equity and the merit s of the case;

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

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

() To enjoin any or all acts involving or arising from any case depending
before it which if not restrained forthwith, may cause grave or
irreparable damage to any of the parties to the case or seriously affect

social or economic stabilit

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

(h) To deputize in writing or request assistance to appropriate government

agencies or instrumentalities for the purpose of enforcing its decisions;
and

()) To issue an ex parte order directing the discontinuance of the discharge
of substances the cause marine pollution, or the temporary suspension
or cessation of operation of operation of the equipment , project or
activity and other acts causing environmental degradation, generating
pollutants or wastes, without the necessity of a previous public hearing:
Provided, That the ex parte order shall be issued only in case of
immediate threat to life or property, public health, safety or welfare or

to animal or plant life, or exceeds the allowable environmental


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standards. The ex parte order shall be immediately executory and shall

remain in force and effect until this is modified or lifted by the MPAB.

SEC. 37. Finality of Determination. — Any case or controversy before the
MPAB shall be decided by majority of all its members within thirty (30) days after it
is submitted for resolution, Only one (1) motion for reconsideration shall be allowed
Unless as appeal is perfected and a cash bond equivalent to the fine imposed is
deposited, any order, decision or ruling issued by the MPAB shall be final and
executory.

Ss

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

executory

CHAPTER 7

Miscellaneous Provisions

SEC. 39, Ship Pollution Prevention Program. ~ The DOTC, in coordination
with concerned agencies and stakeholders, shall establish a Prevention of Ship
Pollution Program to enhance government implementation of this Act particularly on:
(a) awareness building and capacity building; (b) data banking; (¢) development of

reception facilities; (d) marine environment protection; and (e) research.

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

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

regulations issued by the Department pursuant to this Act.


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

The JCOC shall continue to exist or a period not exceeding five (5) years from
d by

the effectivity of this Act and thereafter, its oversight functions shall be exerci
the Committee on Environment of the Senate and the Committee on Ecology of the
House of Representatives, acting separately.

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

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

(@) Within one (1) year following the effectivity of the Act
contributions of owners and operators of tankers and barges hauling oil and for
petroleum products in Philippine waterways and coast wise shipping routes
consisting of five centavos (5c) per liter for every transshipment of oil made by a
tanker barge or tanker hauler based on the volume it loaded for the purpose of
transshipment regardless of its origin or destination; thereafter, reasonable
amount of contribution shall be jointly determined by MARINA, other concerned
government agencies, and representatives ftom the owners of tankers barges,
tankers haulers, and ship hauling oil and/or petroleum products, In determining
the amount of contribution, the purposes for which the fund was set up shall
always be considered;

(b) Fees, charges and fines imposed pursuant to this Act and

Republic Act. No 9483;


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(©) Donations, endowments, grants and contributions; and
(@) Amounts specifically appropriated for the MEMF under the
annual General Appropriations Act.
‘The MEME shall be utilized for the following activities:
(1) Containment, removal and clean-up operations of the PCG in all oil
pollution cases; and
(2) Enforcement and monitoring activities of the MARINA, the PCG
and port authorities of the Department and other relevant agencies:
Provided, That ninety percent (90%) of the funds shall be
maintained annually for the containment, removal and clean-up
operations of the PCG in all cases of pollution from ships: Provided,
further, That in no case shall the MEMF be used to fund
personal services expenditures except for the compensation of those
involved in clean-up operations.
SEC. 43. Appropriations. - The amount necessary to carry out the provisions
of this Act shall be charged against the current year’s appropriations of the concerned
agencies. Thereafter, such sums as may be necessary for the operation and

maintenance of this Act shall be included in the General Appropriations Act.

SEC. 44. Separability Clause. - In the event that any provision of this Act is

declared unconstitutional, the validity of the remainder shall not be affected thereby.

SEC. 45. Repealing Clause, ~ The fifth paragraph of Section 28 of the
Philippine Clean Water Act and Section 22 of the Oil Pollution Compensation Act are
hereby repealed. The Toxic Substances and Hazardous and Nuclear Wastes Control
‘Act, the Marine Pollution Control Decree of 1974 and 1976 are hereby amended and
modified accordingly. All laws, decrees, rules and regulations and executive orders
contrary to or inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 46. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,