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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

© a SLT

HOUSE BILL

Introduced by REPRESENTATIVE JONATHAN KEITH T. FLORES

EXPLANATORY NOTE

The Constitution, Article Hl, Section 15 mandates:

“SECTION 15. The State shall protect and promote the right to health of the people and
instil] health consciousness among them.”

Moreover, Article Il, Seetion 16, provides:

“SECTION !6 The State shall protect and advance the right of the people to +
balanced and healthful ecology in accord with the rhythm and harmony of nature ~

In a 2017 study conducted by the World Health Organization (WHO) and the United Nations
International Children’s Emergency Fund ((/NICEF) Joint Monitoring Programme (JMP) for Water Supply,
Sanitation and Hygiene, some 3 in 10 people worldwide, or 2.1 billion, lack secess to safe drinking water at
home, and 6 in 10. or 4.4 billion people fack safely managed sanitation

In the Philippines, 91% of the country’s estimated (00.7 million population have access to at least
basic water services, but access is highly inequitable across the country, with regional basic water services
access ranging from 62% to 100%, Around 99% of dhe one-fifth wealthiest households are more likely to have
access to basic water services; while only 80% of the poorest quintile do.

Around 6 million Filipinos also still practice open defecation, and some 20 million lack access fo basic
sanitahon facilities While over 75 miljion Filipinos have basic sanitation service at the national level, chere
ave significant inequalities, particularly with regronal coverage ranging only fom 22% to 86%.

In addition to that, the quality of water 1s not the only issue that confronts our country but quantity of
water as well, Water scarcity is a major problem that is prevalent especially when El Niiio hits the country.
Water supplies in parts of the Philippines are frequently threatened and. as a consequence, supplies are
frequently shut down to preserve capacity. Six to eight months of the year arc largely dry during these months,
acute water shortages occur and people rely on drinking water sources that may not be safe. They may also
Jack sufficient water for washing to maintain basic hyuiene to prevent infection from diseases. Such inadequate
and intermittent water supply in parts of the country present serious consequences to health,

(Current projections of climate up to 2050 sugyest the Philippines will become warmer, with increasing,
temperature and decreasing rainfall during the dry season and more extreme rainfall events during the wet
season. This will undoubtedly exacerbate both water availability during periods of drought and the magnitude
of flood events during periods of heavy rainfall



In addition to water stresses from a changing climate, the population is expected to increase by around
50% up to 2050, with the urban population set to double over the same period. This will further exacerbate
pressures on future water resources,’

Furthermore, water quality problems include increasing groundwater and surface water pollution,
Drought and flooding have also increased damages in recent years due to deteriorating watersheds and high
economic and population growth. In relation to these, the government enacted national laws to define and deal
with water control and quslity management.

of the proposed measure is to ensure and accelerate universal access to water
‘a regulatory regime that encourages responsible private sector participation,
and shall foster and prioritize the establishment of infrastructure and public works that adopt innovative
solutions and intemational best practices to address the challenges of climate change. Further, all water and
water treatment infrastructure projects are hereby declared as projects imbued with national interest.

This bill seeks co create Department of Water Resources, a primary agency responsible for the
comprehensive and integrated identification and mapping of all water resourees, planning, policy formulation,
and management of the ownership, appropriation, utilization, exploitation, development, and protection of
‘water resources in the Philippines to ensure the optimal use thereof for domestic and municipal water supply,
sanitation, irrigation, hydropower. industry, navigation, flood management, and recreation except fisheries or
aquaculture.

Furthermore, the Department shall be the primary agency responsible for the planning and policy
formulation towards the attainment of universal access to safe, adequate, affordable, and sustainable water
supply, and improved sanitation secvices for all Filipines.

Moreover, the Department shall be the primary national agency to enforce Presidential Decree No.
1067 otherwise known as The Water Code of the Philippines and Republic Act No, 9275. otherwise known as
the Philippine Clean Water Act of 2004.

Likewise, the Department shall exercise the powers and functions of the defunct Pasig River
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and abolished under
Executive Order No. 93 Series of 2019,

UNICEF Philippines Representative Lota Sylwander once said that “safe drinking water and proper
sanitation facilities are essential to health and wellness in the communities, Safe water and sanitation is
especially linked to young children’s nutrition and ability 10 stay healthy and focused in school. Diseases
caused by unsafe or unhygicnic practices decrease children's chances to successful school completion and
healthy growth. In rural areas where poverty is high, inequalities are ageravated by this cycle of and link
between the lack of access to safe drinking water and sanitation, and poor health ane! low productivity.”

earnestly sought.

Tn view of the foregoing, approval of this

|ATHAN KEITH FLORES
District, Bukidi

21De Andrew Barkwith, improving Weter Security in the Philippines



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

3877

HOUSE BILL No.2 9 4E

Introduced by REPRES!

PATIVE JONATHAN KEITH 1, FLORES

AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND THE
WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, POWERS AND
FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR

Be it enacted by the Senate and Homse of Representaitves of the Philippines in Comgress assembled:

CHAPTERI
GENERAL PROVISIONS
SECTION |. Short Title. ~ This Act shall be known as the “National Water Act”
SEC. 2. Declaration of Policy. ~ Access to water is a basic human right. All water belongs to the

State which shall govern its development and utilization for the people

it is hereby declared the policy of the State to ensure the provision of safe, adequate, affordable.
and sustainable water supply and improved sanitation services, while maintaining the protection,

preservation, and revival of the quality of the country's water resources and ecological balance

In pursuit of this policy, this Act shalt have the principal objective of ensuring and accelerating

universal access to water supply and sanitation services, it a regulatory regime that encourages responsible

private sector participation, and shall foster and prioritize the establishment of infrastructure and public

works that adopt innovative solutions and international best practices to address the challenges of climate

change. Further, all water and water treatment infrastructure projects are hereby declared as projects
imbued with nationa! interest

SEC 3. Definition of Terms. — As used in this Act
(a) Bulk water supplier refers to any entity, natural or juridical, whether public or private, supplying
or intending to supply large quantities of raw or treated water to buyers who will use these for


their own consumption, such as industrial companies. or for retail distribution to consumers such
as water service providers or real estate developers managing their own distribution network

(b) Environmental services refer to qualitative functions of natural non-produced assets of land,
water, and air, including related ecosystems, and their biota, and which may be categorized into
throe basic types: (a) disposal services which seflect the finetions of the natural environment as
an absorptive sink for residuals; (b) productive services which reflect the economic functions of
providing natural resouree inputs and space for production and consumption. and (c) consumer
‘or consumption services which provide for physiological as well as recreational and related needs
of human beings

(c} Flood Control refers 10 methods, acts, and protocols to be observed in order to prevent and reduce
the detrimental and catastrophic effects of flood waters which include sediment-laden or turbid
flaws, and hyper-concentrated flows or debris flows

(d) Hoel itisk Mangement (FRM refers to such acts of defining and determining the appropriate
methods. acts, and protocols aimed at preventing and reducing the risk of incurring loss of both
liffe and property due t flood waters. Flood risk management consists of a cycle of prevention,
mitigation, adaptation, preparedness and early warning, and response and recovery The elements
of FRM include: integrating land-use planning and coastal zone management into water
management; adopting a holistic approach so that FRM is part of wider risk or multi-hazard
management of earthquakes, landslides, and storm surges, managing risk and uncertainty as a
whote so it not only mitigates hydrological uncertainties but also social, econamtic and political
uncertainties on account of human behavior and the cultural dimensions of FRM.

(e) Gender Equaligy reters to the principle asserting the equality of men and women and their right
to enjoy equal conditions realizing their full human potentials to contribute to and benefit From
the resuits of development, and with the State recognizing that all human beings are free and
equal in dignity and rights

(D Jafrasirnctire and puble works cefer only to wholly or primarily water-related projects and does
not include projects that do not fall within the purview of the abjectives, power and duties of the
Department of Waier Resources created under this Act.

(2) Mntegrated Water Resource Management (TWRM) refers 10 a systematic, collaborative. and multi-
stakeholder process which promotes the coordinated development znd manayement of water.
land. and related resources within geophysical boundaries in order to maximize the resultant
economic and social welfare in an equitable manner, and without compromising the

sustainability of vital ecosystems.
upply refer to communal sources of water described according to location and

(h) Levels of water
size of the recipient human settlement 4s follows.
(1) Level 1 or the point source is a protected well or 4 developed spring with an outlet but without
any distribution system, generally adaptable to rural and upland areas where -houses are thinly
scattered, and is a facility which usually serves an average of 15 houschoids,


vel tl o¢ the communal faucet system or stand posts is a system composed of's water source,
a reservoir, a piped distribution network, and communal faucets where one faucet serves 4 to
6 households and is generally suitable for rural and urban fringe areas where houses are

Q)

clustered densely to justity a simple piped systent

(3) Level III or the waterworks system or individual house connections is a system with a water

source, a reservoir. a piped distribution network and household taps. suitable for densely
populated urban areas

(®) Licemse refers to the Water Supply and/or Sanitation Services Operating License that the Water

Regulatory Commission is authorized to grant and issue to service providers

(j) Licensee refers to a service provider to whom a license is granted or issued by the Water
Regulatory Commission

[k) Masionary Wiwer Services refer to water supply or services to areas that have no existing safe

water supply and services due to geographic limitation or absence of economic and market

viabi

Nevional Water Resources Management Plan (NWRMP) vefers to & policy document that

a

contains a framework to guide the development and management of all the water resources in
the Philippines, the general strategies and work to be pursued to ensure the sustainability of the
resource towards water security, and top-level direction on the utilization of existing water
resources in line with national development plans, policies, and programs in sccordance with the
IWRM framework The NWRMP shall also include « water infrastructure development program
or all waters of the country #s well as provide general guidance on how this shall be supported

within an integrated financing framework that can draw from public, private, and international
development funding sources,

(m) Net Waste Load refers to the difference of the initial waste load of the abstracted water and the
waste load of the final effluent discharge of an industry

(n) Kegulatary Units refer to the offices established under Section 20 of this Act which issue licenses
authorizing the operation of Water Supply and Sanitation Services, and provide. review,
determine, fix, and approve water and sewerage tariffs. rates, and charges that licensees may
impose

(o} River basin refers to an area of land drained by a stream or body of fixed water and its tributaries
which have a common outlet for surface run-off.

(p) River Basin Organization (KBO) refers to multi-stakeholder organizations which plan,
coordinate, and monitor activities within a river basin cluster.

(q) Sewritctio refers to the provision of facilities and services for the safe management of human
excreta, from toilet to containment, and storage and treatment onsite or conveyance, treatment
and eventual safe end use or disposal, and includes the safe inanagement of solid waste and
animal waste.

(x) Seeliment management refers to contral of sediment erosion and deposition in rivers, reservoirs,
and coastal zones through non-structural and structural measures and contro! works,


(3) Sustainable Development Goutls (SPGs) alse known as the 17 Global Goals reer to the universal
call to action to end poverty. protect the planet and ensure that all people enjoy peace and
prosperity by 2030 adopted by all United Nations Member States in 2015

(8) Seprage is the liquid and solid matcrial pumped from a septic tank, cesspool, or other primary
treatment source

(u) Septage Managemen refers 10 the provision of proper collection, treatment, and disposal of
septage.

(vy) Service Arca refers to the area covered by the water distribution system, seweraze, and /or
septaye management services

(w) Service Provider refers to any entity, natural or juridical, whetber private or public, providing or

intending to provide levels I & IIL water supply, including bulk water suppliers, sewerage,
septaye treatment. and disposal services for domestic, residential, industrial, or commercial use

(x) Sewage refers to water borne human or animal wastes. excluding oil or oil waste, removed from
residences, buildings, institutions, and industrial and commercial establishments together with
such groundwater. surface water and storm waters as may be present including such waste from
vessels, offshore structures, other receptacles intended to receive or retain waste or other places
or the combination thereof

(y) Sewerage refers to any system or network of pipelines, ditches, channels or conduits including

pumping stations, {lift stations and force mains, service connections including other
infrastructure, devices, or appliances appurtenant thereto, which include the collection, transport,
pummpiny and {reatment of sewage to a point of disposal

{2) Sewers refer to pipes or such other works of structures which are built and constructed to carry,
transport, and dispose sewage

{aay Social inclusion refers to the process of improving the terms for disadvantaged individuals
and groups fo take part in society,

(bby ter
sanitation services based on principles, standards, and guidelines established by the Department

refer to such amounts which may be charged by ficensees for their water supply and

of Water Resources,
tec) Water Demand Management (PM) refers 10 any method, whether technical, economic,
administrative, financial, or social that will accomplish one or more af the following
(1) Reduce the quantity ar quality of water required to accomplish a specific task,
(2) adjust the nature of the task or the way it is undertaken so that it can be accomplished witl less
water or with lower quality water,
(3) Reduce the loss in quantity or quality of water as it flows from source, through use. to disposal.
(4) Shiit the timing of use from peak to off-peak periods; and
(5) Increase the ability of the water system (0 contiriue to serve society during times when water
jis in short supply
(dd) Warer Districts refer to government-owned and controlled corporations organized under
Presidential Decree No. 198, as amended, created primarily to acquire, install, operate, maintain,



and improve water supply and distribution systems for domestic, industrial and municipal uses
of residents and to provide, maintain and operate waste water collection, treatment and disposal
facilities within the boundaries of the district.

(ee) Water pollution refers 10 any eheration of the physival, chemical, biological, or radiological
properties offs body of water resulting in the impairment of its purity or quality

(f) Waver Resource refers to water under the ground or groundwater, water sbove the ground such
as surface water, run-ofis, floods, storm water and urban drainage, treated wastewater, water in
the atmosphere or rain water, and the waters of the sca within the territorial jurisdiction of the
Philippines

(ug) Water Resources Regions refer to the contiguous clusters of river basins which are grouped
together according to the hydrological boundaries, physiographic features, nd homogeneity in
climate, whether or not they straddle different local government units, for administrative
purposes under the Department of Water Resources.

(hh) Waner Service Provider (WSP) reters 10 the water district, any Local Goverament Unit (LGU)-
run water utility, Barangay Waterworks and Sanitation Association (BWSA), Rural Waterworks

Sanitation Association (RWSA), cooperative and private sector entity that provides water supply
services to any given area
(ii) Water supply
bulk suppliers, suppliers to subdivisions, and other water service providers
CHAPTER
THE DEPARTMENT OF WATER RESOURCES
SEC. 4, The Department of Water Resources ~ There is hereby created and established the
Department of Water Resources, hereinafter referred to as the Department
SEC. §. Mandave of the Depariment, ~The Department shall be the primary agency responsible for
the comprehensive and integrated identification and mapping of all water resources, planning. policy
formulation, and management of the owxership, sppropriation, utilization, exploitation, development, and

urvice refers to any activity comprising Levels I, UI and tll water supply including

protection of water resources in the Philippines to ensure the optimal use thereof for domestic and
municipal water supply, sanitation, irrigation, hydropower, industry, navigation, flood management, und
recreation except fisheries or aquaculture

The Department shall also be the primery agency responsible for the planning and policy
formulation towards the attainment of universal access to safe. adequate. affordable, and sustainable water
supply, and improved sanitation services for all Filipinos

The Department shall be the primary national agency to enforce Presidential Decree No. 1067
othenvise known as The Water Code of the Philippines and Republic Act No. 9275. otherwise known as
the Philippine Clean Water Act of 2004.

The Department shall exercise the powers and functions of the defiunct Pasig River Rehabilitation
Commission created under Executive Order No. 54 Series of 1999 and abolished under Executive Order
No, 03 Series of 2019, specifically the following roles that were transferred to the Manila Bay Task Force
and DENR through the latter EO:


(a) Update and take the lead in the overall implementation of the Pasig River Rehabi ation
Master Pian, which shall harness the Pasig River's potential for transportation, recreation and
tourism purposes while undertaking the rehabilitation and restoration of its maritime life: and

(b) Ensure that the easements provided for in the Civil Code and other relevant laws are enforced,
‘especially in all the esteros and waterways that drain into the Pasig River aswell
as abate the dumping, of untreated industrial wastewater and sewerage intothe river, including
all acts and omissions in violation of Presidential Decree (PD) No. 984, 5. 1976, as amended
entitled, Providing For The Revision Of Republic Act No. 3931, Commouly Known As The
Poltuion Control Law, And For Other Purposes, PD No, 274, s. 1973 entitled, Pertaining Yo
The Preservation, Beautification, Improvement And Gainfut Usitization Of The Pasig River,
Providing Mor The Regntation And Control Of Pollution Of the River And Its Banks In Order
Yo Euhawe lis Development, Thereby Masitatzing lis Usilization For Socty
Purposes, and other related laws,

SEC. 6 Guiding Principles. -In the pursuit of its mandate, the Department shall be guided by the
following key principles:
(a) The concept of good water governance for water security and sufficiency shall be adopted across

all levels of governance by stakeholders such as the national government, local government, non-
government organizations, private organizations, individuals, even global societal actors, and in
various sectors such as water supply, irrigation. fisheries, hydropower, navigation, evosystem
services, flood management, climate change, and recreation It shall entail publicly transparent,
socially accountable, and multi-stakebolder participatory water policy planning, management, and
decision-making processes,

(D) Access to safe water supply and improved sanitation is a human right that needs to be fulfilled and
protected

(c) Integrated Water Resource Management /1WRM) shall be adopted as the basic framework which
is the coordinated development and management of water, land, and related resources within
hydrological boundaries to optimize economic and social welfare without compromising the
sustainability of vital ecosystems. The IWRM Framework shall include an enabling environment
that utilizes proper policies, Jegal instruments. and institutional frameworks for effective
implementation, participatory and collaborative water policy and management decisions, and
management instruments for efficient use of updated and accurate data, science-based decision
support systems, proper information, education, communication (IEC) programs, assessment and
allocation tools, or regulatory functions. It shall observe the mutual accountability mechanism
among stakeholders at the national, regional, and ylobal levels reinforcing multi-stakeholder
decision-making following a framework with specific, measurable, attainable, relevant, and timely
actions.

(d) Each river basin has its unique characteristics relating to the physical, socio cultural, and other
aspects, and water management shall be performed at river-basin level, involving all the
stakeholders at that particular river basin,


(e) Integrated and accurate data collection and analysis and the use of scientific decision support
systems shall be undertaken in water resources management including flood modeling and warning
systems that are essential for an effective, efficient, and sustainable water resources management
system.

(8) The development of water resources shall include strategies for the mitigation of water-related
hazards and climate change adaptation.

(a) Water resources and services should be provided where they are intended and most needed so that
water is fairly and sustainably managed.

{h) The proper operation and maintenance of waterwarks systems resulting in the uninterrupted and
adequate supply and distribution of potable water for domestic and other purposes, and the proper
operation and maintenance of sewerage systems which are essential services to public health and
safety, are to be ensured at all times The Stete shall therefore supervise and control the
establishment, operation, and maintenance of such systems.

SEC 7. Objectives of the Departmem — The Department shall

{a) Promote and adopt water demand management as a national policy to ensure that water is
optimized, that water efficiency and conservation become a way of life, that the recycling and
reuse of water and treated wastewater are widely practiced, that water is properly priced to
encourage efficient use and conservation and that rainwater, flood waters, and run-ofls are
captured or harvested, stored and treated for future ase;

fe attainment of universal access to safe, adequate, affordable and

(b) Prioritize and seek the in:

sustainable water supply and improved sanitation services for all Filipinos in a manner consistent
with the protection, preservation, and revival of the quality of the country’s water resources, and
to adopt all needed measures to advance the right of the people to a balanced and healthful ecology
in accord with the rhythm and harmony of nature

(c) Strengthen and coordinate integrated water resources management planning and policy making 10
ensure sustainable and fair allocation and efficient use of water resources among competing uses
and users,

(d) Ensure that integrated water resources managemem is strongly coordinated with land use and
coastal and multi-hazard planning and management,

(c) Develop sustainably, and manage water sources and water resources toward water security, taking
into consideration water, land. and related resources aimed at increasing water dependability for
different uses, optimizing economic benefits and social welfare without compromising the

sustainability of vital environmental systems,

(0) Stengthen and coordinate policy making and planning towerds ensuring the availability of water
for food security and energy security, as well as towards the protection of communities and
environments against flood and other water induced hazards including sediment hazards;

(a) Ensure that the strategy for water resources development and conservation is participatory, and
that planners, policymakers and users including community members are involved at all levels,


(h) Develop a standardized pricing framework for water use that accounts for environmental
externalities, and

(3) Ensure that all sources of water, including surface water, groundwater, rainwater and floodwater
are identified, mapped, monitored, conserved and managed for productive use and the resulting
Wastewater is managed properly, reused, and responsibly disposed of following approved
environmental standards
SEC.8. Pewery aud Functions of the Depariment. — The Department shall have the following,

powers and functions
[. Policymaking and Planning

{a) Ensure that Integrated Water Resources Management (IWRM) is adopted as the strategic
framework for water management policymaking and planning in the country and coordinate the
implementation, promotion, revision and enhancement of IWRM plans;

{b) Formulte policies, strategies, and targets in coordination with other relevant entities to meet the
goals and objectives for water supply and sanitation, water quality, irrigation, hydropower, flood
control, stormwater utilization, and urban drainage. Such policies shall, among other guidelines,
integrate the issues of water and sanitation, food security, energy, environment and food control,
and climate change:

(c) Formulate and develop policies to promote universal access to sale, adequate, affordable. and
sustainable water supply. and improved sanitation services for all Filipinos;

(d) Regulazly update, every five years or as deemed necessary by the Department, and in consultation
with other agencies and stakeholders, the NWRMP following the [WRM framework and integrate
therein a national land use plan,

(€) Undertake river basin survey, inventory and appraisal of water and related resources, and develop
comprehensive basin-wide plans of storage, retardation, and control to maximize conservation and
multipurpose use of water in the basin;

(8 Conduct vomtinuing hydrological and hydrometeorological surveys and studies of the country’s
renewable water supply, and establish, operate, and maintain observation station networks
with a view towards formulating long-term policies to balance the sustainability and opttmal
smultiple use of water resources, defining the hydrologic boundaries of basins of the existing water
supply sources and developing or updating and implementing countrywide comprehensive basin-
wide master plans.

(g) Strengthen and coordimate policy making and pl
stormwater or urban drainage and appropriate retention or retarding basins in order to harvest and

ning for food management, integrated with

reuse water, and to plan against, prevent, and minimize the detrimental and catastrophic effects of
flooding,

(h) Assist and provide the National Economic and Development Authority (NEDA) with the required
data and input from the water sector in the formulation of the country’s short-term and long-term
strategic development plans and actions, and recommend to the NEDA Board the adoption of
general policies and guidelines for water resources development,

10


(i) Review, approve, and provide aversight over all water-related development plans and programs of
any agency within the context of the NWRMP. and overall national plans and programs:

(j) Develop and implement, in coordination with other relevant agencies, effective codes, standards,
benchmarks, and reasonable guidelines to ensure the safety of all public and private water
strictures in the country, and assure efficiency and proper quality in the construction of water,
sanitation, irrigation, hydropower, flood control and drainage infrastructure:

(k) Ensure that gender equality, social inclusion, environmental protection, climate resiliency, and
disaster tisk reduction are integrated into any water resource management planning, policy making,
and the design and construction of water infrastructure,

(1) Ensure that the planning and design of water infrastructure considers the highest efficiency and
most appropriate technology and quality. in accordance with national development objectives;
{(m)Review existing guidelines appropriate for private sector participation in the water sector and
submit recommendations to the Public-Private Partnership (PPP) Center of NEDA and other

concerned agencies 1 promote and enable more PPPs in the sector:

(0) Build a central repository of water data and effect inter-sectoral, inter-agency, and inter-
departmental coordination on all aspects of data gathering and management for water resources
development planning and compel the submission of statistics and data on warer utilization with
the aim of operationalizing the integrated approach to water resources management:

(0) Ensure the effective implementation of all the provisions of Republic Act No. 9275, Presidential
Decree No. !067, and Sections 9. 10, 11, 12 & 13, Chapter I of Presidential Decree No. 856,
otherwise known as the Cade on Sanitation of the Philippines:

{p) Promote Philippine participation in information sharing and education on best practices in support
of international efforts to achieve universal access to safe water and improved sanitation, and the
imegration of water, energy, environment and food security; and

(q) Issue and promulgate cules, regulations and guidelines as may be necessary to implement and
enforce its powers and fisnctions under this Act
I. Resource Regulation

(a) Manage and conserve the country’s water resources to ensure the optimal use thereof for domestic
water supply, sanitation, irrigation, hydropower. navigation, flood control. and recreation
purposes, and enhance and maintain water quality, conserve watersheds, contro! water pollution,
and restore the environment, without compromising the natural ecosystem functions and services;

(b) Regulate and contro! the utilization, abstraction, diversion and development of water resources,
taking in consideration their equitable distribution among competing demands and determine the
standards of beneficial and priority uses of water in times of crisis and national emergencies;

{c) Formulste, promulgate, and enforce rules and regulations for the development and optimum use
of water resources and its administration and management, including coherent water protocols,
operating rules of all existing and future water infrastructure; general criteria, methods and
standards for basic data collection and project identification, formulation and planning, and
appropriate sanctions to be imposed for non-compliance;

n


(4) Regularly review regulations prescribed by any government agency pertaining to water use,
exploitation, development. and conservation or protection of waters, water resources, and
watershed or basin areas with respect to this Act;

{e) Impose fees or charges, as may be deemed necessary for water resources conservation and
protection, such as:

(1) Polluter’s Fee, which shalt be based on the net waste load depending on the wastewater charge
formula pursuant to Republic Act No. 9275,

(2) Raw water price, which shall take into eccount, among others, the scarcity of water: and

(3) Appropriate payment structures for environmental services.

(£) Deputize LGUs to collect the national fees or charges for resource regulation within their
respective jurisdictions,

(@) Collect. regularly update, monitor, and anelyze water resources data including climatology,
hydrological and other water-related data and ensure that such data is easily accessible by relevant
and authorized users,

{h) Establish, operate, and maintain observation station neworks and « centralized water resources
data center for the sciemifie survey and appraisal of surface and groundwater pateatials of the
country, and determine the annusl renewable water available per water resources region,

(3) Maintain a database thet will contain updated relevant information on water data which will be

accessible by relevant and authorized users;

(j) Develop and continuously update a computerized decision support system that incorporates data
management systems relating to acquisition and database, mode) base in terms of physical design,
planning and decision models, and user-friendly interface concerning graphical and visualization
tools;

(k) Conduct and promote special studies and research on water economics and other water resources
development and management issues and concerns such as climate change, weather modification,
flood monitoring and modeling, environmental quality, and desalination, and

(1) Raise public awareness through information, education and communications programs, anxd build
capacities for informed participation in water resources management at the national and river-basin
level.

IIL. Institutional Arrangement with Public Weter Organizations

{a) Develop guidelines including rules of partnership, between and among the Department, field
offices of national government agencies, LGUs and other stakeholders in water resource
management, and facilitate the cstablishment of multi-stakeholder river basin organizations
(RBOs) per river basi

(b) Develop materials for capacity building and training of prospective RBOs,

(¢) Authorize its representatives or any deputized agent w enter any property of public dominion with
or without prior notice and consent, any private land, building or enclave, whether inhabited or

and strengthen and support existing RBOs and monitor their activities,

not, forthe purpose of conducting hydrologic surveys and investigations, including assessing and


evaluating the conditions of water facilities installed, and determining compliance with water laws
and standards,

(d) Provide technical assistance to water users including farmers, communities, and LGUs and other
water service providers (WSP) whether directly or in coordination with other agencies on all
aspects of integrated water resources management:

{e) Respond te consumer complaints. and ensure the adequate promotion of consumer interests,

(f) Deputize agents, whether from the public or private sector, to assist in the performance of any of
the powers and functions of the Department;

(g) Appoint, hire, and maintain adequate staff and personnel, advisers or consultants with suitable
qualifications and experience, as necessary, subject to existing nukes and regulations.

{V. Coordination

(a) Coordinate and integrate water resources dovelopment activ
of national plans and policies for social and economic development,

(b) Coordinate with other government agencies, universities, academe and private professional groups
in all aspects of date gathering, the conduct of special studies and research on all related aspects

‘thin the context

of the country

of water resources management and development such as climate change, environmental quality,
desalination, and the development of operating strategies, procedures, and protocols and
accompanying computerized decision tools for major water facilities,

(©) Coordinate with the concerned and relevant agencies enyaged in flood control, flood risk
management, and drought risk management: and

(4) Coordinate proactively with LGUs to ensure the integration of water resources development plans
into their comprehensive land use plans (CLUPs), Comprehensive Development Plans (CDPs) or
Provincial Physical Framework and Development Plan (PPFDP}

V_ Other Functions

{a) Create when necessary, water resource subsidiaries, instramentalitics, end entities to engage in

water iransmission, water distribution, waste water treatment and management, and sanitation in

accordance with existing relevant laws.

Enter into contracts, joint venture agreements or understanding, public-private partnerships, and

memorandum of agreements or understending. either domestic or foreign, relating to investment

and financing water-related projects, under such terms and conditions as the Department may deem

(b)

proper and reasonable subject to existing laws
(c) Exercise such other powers and functions necessary or incidental fo the effective administration
and management of the country’s water resources.

SEC. 9. Secrerary of the Department of Water Resources. ~ The authority and responsibility for
the exercise of the mandate of the Department and for the discharge of its powers and functions shall be
vested in the Secretary of the Department, hereinafter referred to as the Secretary, who shall

{a) Advise the President on the promulgation of executive or administrative orders, regulations,
proclamations and other issuances relative to matters under the jurisdiction of the Department

a


(b) Establish the policies and standards for the operation of the Depariment pursuant to the President's
guidelines;

{c) Promulgate rales and regulations necessary to camry oul the abjectives, policies, and functions of
the Department,

(d) Exercise supervision and control over all bureaus and offices under the Department,

(e) Supervise all attached agencies and corporations in accordance with law,

(f) Represent the Department in contracts, awards, and cther similar agreements,

() Delegate authority for the performance of any power or function, as defined herein to officials and
employees under his direction as deemed appropriate.

(h) Act as the Chairperson of the governing board of the attached agencies of the Department,

(Designate and appoint officers and employees of the Department, excluding the Undersecretaries,
Assistant Secretaries, and Regional and Assistant Regional Direetors, in accordance with the civil
service laws, rules and regulations, and

{) Perform such other duties and responsibilities as may be provided by law
SEC. 10, Office of the Secretary. — The Office of the Secretary shall be composed of the Secretary,

Undersecretary. Assistant Secretary and the Secretary's immediate staff.

SEC. IL Undersecretaries. ~The Secretary shail be assisted by not more than five (5)

Undersecretaries, who shall be appointed by the President upon the recommendation of the Secretary
namely. Undersecretary for Resource Regulation and Governance, Undersecretary for Inland Waters and
Water for Agriculture, Undersecretary for Resource Development, Undersecretary for Planning and Policy
and Undersecretary for Missionary Water, Indigenous People, and Special Concerns.

The Secretary is hereby authorized to delineate and assign the respective functional areas of

responsibility of the Undersecretaries in accordance with the mandate and objectives of the Department:
Provided, That no Undersecretary shail be assigned purely 10 administrative responsibilities. Within their
respective fimnctional areas of responsibility, the Undersecretaries shall

(a}Advise and assist the Secretary in the formutation and implementation of the policies, plans,
programs and projects of the Departmen;

(b) Supervise all the operational activities of the assigned units for which the Undersecretary is
responsible to the Secretary, and

(c) Perform such other functions deemed necessary as may be assigned or delegated by the Secretary
10 promote efficiency and effectiveness in the delivery of public services oras may be required by
law Provided That the Undersecretary tor Planning and Policy shall, in
coordination with the Planning and Policy Service, be primarily responsible for advancing current
efforts in attaining the ultimate goal of universal access to water supply and sanitation systems,
and sustainable management of water resources under the SDGs, and the integration of water,
energy, environment and food security
SEC, 12. Assistant Secretaries. - The Seoretary shall be assisted by six (6) Assistant Secretaries to,

be appointed by the President of the Philippines upoa the recommendation of the Secretary! one each for
Planning and Policy Service, Decision Support System Service, Resource Regulatory Service,

4


Comptrollership and Financial Management Service, Legal and Legislative Service, and Administrative
and Human Resources Menagement Service.

No person shall be appointed Secretary, Undersecretary and Assistant Secretary of the Departinent
unless the person is a citizen and resident of the Philippines, of good moral character, of proven integrity,
competence and expertise in water resource management: Provided, That st feest one (1) of the
Undersecretaries and at least two (2) of the Assistant Secretaries shall be career officers,

SEC. 13. Organizational Strncnure, — The Department shall be composed of the following
organizetional units:

(a) Depariment Proper ~The Department shall consist of the Office of the Secretary, the Offices of
the Undersecretaries and Assistant Secretaries, the luternal Audit Office, the Public Affairs Office,
the Water Pollution Adjudication Board, the Planning

:nd Policy Service, Decision Support System
Service, Administrative and Human Resources Service, Legal and Leuislative Service,
Comptroltership and Financial Management Service, Resource Rewulation Service, and the Water
Resources Regional Offices.

(b) Anached agencies, - The Department shall exercise administrative supervision over the following

agencies for purposes of policy and program coordination, monitoring, and evaluation
(1) The Local Water Uiilities Administration (LWUA), whose mandate, powers, and functions are
detined in Presidential Decree No. 198, otherwise known as the Public Water Uilines Act of
1973, as amended, shall be trarsterred from the Department of Public Works and Highways
and attached to the Department. It shall continue to primarily function as a specialized lending
institution for the promotion, development, and financing of local water utilities, In the
implementation of its fiznctions, the LWUA shall
{i) prescribe minimum standards and regulations in order to assure acceptable standards of
construction materials and supplies, maintenance, operation. personne! training,
accounting and fiseal practices for local water utilities:

ii) farnish technical assistance and personnel training programs for local water utilities,

(ii) monitor and evaluate local water standards: and

(iv) effect system integration, joint investment and operation, district annexation and
de-annexation whenever economically warranted as amended by Sec. 22, Presidential
Decree No 758.

(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate, powers, and
functions are defined under Republic Act No. 6234, as amended entitled, 4n Acs Creating The
Metropolitan Waterworks And Sewerage System And Dissolving The National Waterworks
And Sewerage Authority; And For And For Other Purposes, shall be transferred from the
DPWH and attached to the Department: Provided, That the MWSS shall continue to facilitate
the exercise by the concessionaires of their responsibility. carry out accounting and notification
functions: monitor, report, and administer loans; pecform related functions in connection with
existing projects; manage and dispose ils retained assets, and manaye and operate the Umiray-
Angat Transbasin Project.


(3) The National Irrigation Administration (NIA), whose mandate, powers, and functions are
defined under Republic Act No. 3601 as amended by Presidential Decree No. 552 and
Presidential Decree No. 1762,

(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and functions are
defined under Republic Act No. 4850, as amended entitled, An Acv Creating Lhe Laguna Lake
Development Authority, Prescribing lis Powers, Pimetions And Duties Provading Funds
Therefor, And Kor Other Purposes shall be wansferred from the DENR and attsched to the
Department
‘The LIDA shall continue to serve as the lake management and development authority similar
to a multi-stakeholder river basin organization and shall ensure the implementation of the
Laguna Lake Master Plan which shall be updated by the Department to ensure alignment with
the NWRMP

Any other agency performing water resources management, conservation and protection functions
may be transferred to the Department es the President deems necessary.

(0) Offices, Functions and Personnel ta be Completely: Subsumed under he Deparinent — The
following offices with their powers, functions, personnel, applicable funds and approprations.
records, equipment and property shall be subsumed under the Department:

(1) The National Water Resources Board (NWRB) with all its divisions and sections, whose

mandate, powers and functions are provided in Presidential Decree No. 424, as amended,

(2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and functions
are provided in Executive Order No. $10 and Executive Order No. 816, as amended;

(3) The Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened by virtue
of DENR Administrative Order (DAQ) 2011-0! to coordinate the efforts of the fourteen (14)
national agencies covered by the Mandamus Order of the Supreme Court to rehabilitate
Manila Bay,

(4) ‘The Water Resources Manaucment Division of the Bureau of’ Soils and Water Management
of the Department of Agriculture (DA},

(5) The Weter Supply and Sanitation Unit of the Department of the Interior and Local
Government (DILG): and

(6) ‘The Water Quality Management Section of the Environmental Mavagememt Bureau (EMB)
of the DENR.

(@) Functions to be Transferred ta the Deperoment. ~ The follewing functions of the respective
agencies, bureaus, and units shall be transferred to the Department;

(1) The hydrological surveys and groundwater mspping function of the Mines and Geosciences
Bureau (MGB) of the DENR.

(2)The hydrological surveys monitoring of stream flow aad water data collection function of the

Bureau of Design and Bureau of Research and Standards of the DPWH,
(3)The protection and conservation of natural wetlands such as lakes, marshes, swamps of the
Biodiversity Management Bureau of the DENR; and



(4)The planning, programming, administration, monitoring, managemem of the National
Sewerage and Septage Management Program (NSSMP) by the DPWH.

()The flood management planning and sediment management fuunction of the Flood Control
Manayement Cluster of the DPWH,

{6)The Water Resource Management Division and the water research functions of the Soils and
Water Research Division of the Bureau of Soils and Water Management under the DA. All
soil-related functions shall be retained under the Bureau which shall be renamed as the Bureau
of Soils.

(€) Support Services - The Department shall create the following support services

(1) The Planning and Policy Service shall provide the Department with the capability to undertake

water infrastructure development planning and programming, and shall exercise the following

functions
(i) Advise the Secretary on all matters relating to water resources planning,

(ii) Assist the Undersecretary for Planning and Policy on all matters related to the specific

functions of the position,

(iii) Formulate strategies and priorities for water resources management and development
consistent with national development objectives, and initiate or undertake relevant
surveys for development planning;

(iv) Develop and regularly update a comprehensive and integrated National Water
Resources Management Plan and ensure its imegration into existing land use plans,

{v) Coordinate river-basin planning following the integrated water resources management

framework and the river-basin approach:

(vi) Formulate or update existing River Basin Master or Comprehensive Plans which
includes all aspects of water management and development soch as water supply and
sanitation, irtigation, flood control and stormwater or urban drainage, drought isk
management, water resource development systems and other public water works
projects, including phasing of implementation:

(vii) Identify, based on the river basin master plan, priority packages for water
infrastructure development per river basin, including water supply, sanitation,
irrigation, lod control and stormwater or urban drainage, drought risk management,
water resource development systems and other public works projects, package project
proposals for fuinding aad prioritize project implementation and the allocation of funds
and other resources and undertake or supervise and evaluate the conduct of feasibility
studies and project preparation thereof,

(viii) Evaluate and appraise all regional and inter-regional infrastructure water development
plans and programs as to their feasibility and consistency with approved straicgies and
medium and long -term plans,

(ix) Gather, analyze and organize needed statistical data and information:


Oy)

(xi)
(xii)
«sill

(xiv)

(xy)

Provide technical assistance related to its fiznctions to the other services, bureaus and
the regional offices as needed:

Conduet hydrological and hydraulic surveys and assessments of surface waters;
Develop general criteria and standards on project investigation, formulation. planning,
Develop guidelines and standards on social inclusion in water resources management
and ensure policies, programs and pluns are compliant with the gender and
development framework of the government,

Coordinate closely with PAGASA for rainfall and other climate deta which shall be
considered in the planning for water resources development and management and for

various water infrastructure: and
Perform such functions and activities, as may be mandated by law, which are necessary
for the effective attainment of the abovementioned objectives.

Q) The Decision Support System Service shall provide the Department with water resource
management tools and computerized decision support system that incorporates a datz
management system relating to acquisition and database and model base in terms of physical
desivn, planning and decision models including services related to networking data
management, and information and knowledge or learning management systems for
administrative and non-technical support It shall provide the Secretary timely reports on the
status of various Department projects and activities For this purpose, it shall exercise the

following functions

a

(i)

(iii)

Oy)

ww)

Provide the Secretary the necessary data and processed information to aid in policy and
management decisions under the mandate of the Department,

Publish available real-time raw water data as well as verified or validated water data in
print or electronic form using latest internet technology:

Conduct and publish in print and/or electronic form, standard data analysis such as basic
statistical analysis, trend analysis, analysis of runs, and cluster analysis,

Develop and continuously update water resource management, computerized decision
support systems (DSS) that incorporate data management systems relating to acquisition
‘and database, model base in terms af physical, design, planning and decision models, and
user-friendly interface such as graphical and visualization tools,

The DSS is composed of 1) a measurement or data acquisition system; 2) information or
database management system; 3) analytical and numerical models for design, planning,
decision or evaluation purposes, and 4) a user-friendly interface which includes graphical
interface or visualization tools,

Develop and maintain specific models to include the following.

a) long-term climatologic and weather forecasting model,

b) watershed models and river-flood plain models,

©) groundwater models and coupled to surface water models,

d) flood forecasting model for major rivers,

1


(vi)

©) optimization-simulation management models for watershed conservation, conjunctive
surface and groundwater use. itrigation scheduling, normal and emergency operations
‘of multi-purpose reservoirs, and

i} models.

1) water quality and ecologic

Develop and administer the management information system and knowledge systems of

the Department to
a) Retrieve, process, antd monitor information on alt projects and activities in the web
portal,
b) Conduct and apply systems and process engineering, sofiware development, software
configuration management,
¢) Develop and manage its corporate database, unified database for water industry, data

warehouse, other water information resources, fibrary services and document
management and archiving services,
d) Develop and manage its Information and Communications Technology (ICT)
infrastructure and ICT related-services including computer networking and voice
communications services and data exchange, and
Manage the literacy and training services of the Department oa various ICT and,
Knowledge Management (KM) tools and applications, including information and

knowledge management,

(vii) Perform such other related functions and activities which are necessary for the effective

administration of the management information and knowledge systems of the
Department.

(3) The Administrative awe! Human Resource Service shall provide the Department with services
relating to human resources development. personnel, records, facilities maintenance, medical

and dental, security, property and procurement services, and shall exercise the following

functions:

{)

di)

(ad

(iv)

Advise the Secretary on all matters relating to intemal administration and human
resources management,
Prepare and implement an integrated personnel development plan that shall include
provisions for merit promotions performance evaluation, job rotation, incentive
awards systems, and health and welfare services,
Provide services related to human resource training, education and development
including manpower, career planning and forecasting, and development of indigenous
training materials,
Develop, establish, and maintain an efficient and cost-effective property procurement
system and facilities and coordinate or otherwise interface with relevant agencies,
whether government or private, for the purpose of developing or upgrading the system;

19


(¥) Develop, establish, and maintain an efficient and effective security system covering,
anton, others, personnel, physical installations, facilities, equipment, documents and
materials including the conduct of security investigations:

(vi) Coordinate with the appropriate government agencies for a more efficient conduct of

administrative processes,

(vii) Develop, establish, and maintain an efficient records system,

(viii) Provide assistance in its area of specialization to the Department Proper, bureaus and
regional and water district offices and, when requested, tothe government agencies and
corporations attached to the Department, and

(ix) Perform such other related functions and activities which are necessary for the effective
management of the resources of the Department, including its human resources.

(4) The Legal and Legislative Reseorcs Service shall provide the Department with services on
such legal affairs as contract letting and litigation, legal and legislative research, complaints
and investigation, legal counselling and other matters of law, and shall exercise the following
functions:

(i) Advise the Secretary on all matters relating to legal and tegislative affairs,
(ii) Prepare Department contracts and legal instrament, review and interpret all contracts:
and agreements entered into by the Department and evaluate all legal propasals,
(iii) Conduct administrative investigation and the review of administrative charges against
officers and employees of the Department:
(iv) Exercise functional jurisdiction over the legal staffs of Regional Offices:
(v) Provide legal assistance to the Department Proper, the bureaus and regional offices and
when requested, the attached corporations,
(vi) Develop and prepare the Department's Legislative Agenda, recommend presidential
certification of the urgency of pricrity water bills, and other water-related legislation,
(vii) Coordinate and maintain linkages between and among the various offices, bureaus,
regional offices and attached agencies to the Departinent alony with other government
agencies on policy matters affecting the Department's mandate in relation to legislation;
(viii) Perform liaison and networking activities in relation to the enactment of relared laws
telating to water resources issues in legislative policymaking bodies such as the Senate of
the Philippines, the House of Represent
(ix) Monitor the progress of the Department's priority or certified bills to ensure their passage;
and
(x) Perform such functions and activities, as may be mandated by law, which are necessary
for the effective performance of the abovementioned objectives.

(5) The Comptraticeship and Fmancial Managemein Service shall provide the Department with
coordinated services relating to financial systems and procedures, budget, cash, accounting and
ail financial housekeeping matiers, and shall exercise the following Functions

es, and the various Sanggunians:

20



«i

i)

wi

Advise the Secretary on all matters relating to the accounting of government expenditures
and receipts, budgeting and cash management, project finances and financial systems and
procedures,

Prepare budget proposals and pursue formal buduet authorizations, undertake budyet
execution, and prepare and submit all appropriate reports to the proper offices,

Develop and maintain accounting, financial and assets management systems, procedures
and practices in the Department Proper, Bureaus and Regional Offices,

Review and appraise systems and procedures, organizational structure, assets management
practices, accounting, and other records, reports, and performance standards suc as
budgets and standard costs of the Department, bureaus, and regional offices,

Provide assistance in its area of specializétion to any unit of the Department and, when
requested, to government corporations and councils attached to the Department; and
Perform such other related functions and activities which are necessary for the effective
financial management of the Department.

(6) The Resource Regulation Service shall provide the Department with services for the effective

regulation of nll water-related services and activities and shall exercise the following functions:

@

(ii)

div)

”)
(vi)

Advise the Secretory on all matters relating 10 resource regulations,
Determine, grant and regulate water rights for the appropriate, optimal and sustainable
use of surface and ground water,

Determine and evaluate waterworks and sewerage licenses, and submit evaluation

results to the Water Regulatory Commission for the latter's consideration in granting of

licenses,
Investigate violations of the water rights and the Weter Code, and impose the appropriate
ing laws. rules and regulations as well as Future mules

sanctions in accordance with exi:
and regulations which the Depertment shall promulgate:
Adjudicate water use conflicts, and

Perform such other related functions and activities which are necessary for the effective

regulation of water-related services.

(7) The Imernol Andit Service shall regularly conduct a comprehensive audit of various

Department activities and shall exercise the following functions:

0)
(i)

(iii)

Advise the Secretary on alt matters relating to management control and operations audit:
Conduct a performance audit of the managemeat and operations of the Department, its
. the performance of all units, and determine the degree of compliance of all

activi
operating units with established objectives, policies, standards, methods and procedures.
government regulations and contractual obligations of the Department;

Review and appraise systems and procedures, organizational structure, assets
management practices, accounting and other records, and performance standards such
as budgets and standard costs of the Department Proper. bureaus and regional offices,

a


{iv) Analyze and evaluate management deficiencies and recommend realistic courses of
action; and
(v)__ Perform such functions and activities, as may be mandated by law, which are necessary
for the effective performance of the abovementioned objectives
(8) The Public Affairs Service shal] enhance relations with all stakeholders including the media,
for the effective dissemination of information relating to water-related issues, including
important announcements on policies and activities of the department that is of interest to the
general public, It shall ensure that women, mea, elderly, and people with disabilities shall be
consulted, organized and take active part in all aspecis of water resources development and
management activities. 1t shall also lead the planning and organizing of special events, and
shall exercise the following functions.
(i) Public Awareness
a) Advise the Secretary on matters pertaining to public affairs,
b) Develop and supervise the implementation of comprehensible communications
programs on relevant policies, programs and plans of the Department,
c) Produce and supervise the dissemination of communication materials in line with the
priorities of the Department and national government public information programs;
d) Conduct public opinion and attitude surveys to identify the interests and concerns of
the stakeholders of the Department:
e) Establish policies on the presentation and publication of the content of the
‘communication materials for dissemination to print and broadcast media,
f) Establish and maintain linkages with the tri-media and a presence in social media.
2) Coordinate the conduct of interviews and news conferences,
h) Make public announcements en matters relating to the work and activities of the
Department through the print and broadcast media, either through press releases or

live interviews,
Coordinate with various Department units, concerned government agencies, tri-media
and other stakeholders on matters related to the above-enumerated functions; and.

i) Coordinate with the appropriate national government auencies involved in public
information affairs
(ii) Promote Participation
a) Conduct public consultations and discussions,
1s and programs for public

b) Develop and disseminate relevant and appropriate mate
information and education, as well as advocacy campaign,

©) Conduct seminars and workshops involving the LGUs and the general public on
current water issues and probiems, and

d) Conduct capability building seminers of various siakcholders to promote meaningful
participation in the Department's policy making, planning, development and
implementation of various programs and projects.

2



(ii) Special Events
4) Coordinate the organization and promotion of special events and water exhibits,
'b) Act as the focal office for all water related events, and
c) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives
() Bureaus. - The Department shall create bureaus which shall each be headed by a Bureau Director.
‘The Bureau Director shall be responsible for the efficient and effective discharge of the functions
of the Bureau concemed. The Bureau Director shall be assisted by one (1) Assistant Director
(1) Bureow of Mood Control and Drainage shall plan and design flood control and drainage
structures and facilities in accordance with technical standards, guidelines and manuals.
For this purpose, it shall have the following duties and responsibilities:

(i) Formulate policy, strateyies and programs on fleod risk management in the context of
integrated flood management (IFM) which integrates water, land, coastal zone and multi-
hazard management, In integrating land use planning and waler management. the
Department shall harmonize and synthesize plans to enable the sharing of information

between land-use planning and water management authorities. In this regard, a holistic
approach shall be adopted by making the IFM a part of a wider risk or multi-hazard
management system that includes earthquakes, landslides, fires, isunami, anc other
calamities of the same gravity or nature,
{ii) Integrate climate change and disaster risk reduction and management in policies and plans:
Gii) Prepare master plans of flood management end drainage in river basins in coordination with
the concerned water resources region and river basin organizations,
(iv) Prepare master plans for urban drainage in cities and municipalities,
(v) Prepare feasibility studies of recommended measures in the master plans;
(vi) Plan and design structural measures for food control and drainage,
(vii)Implement and collaborate with concerned agencies on the formulation and adoption of
non-structural measures for flood control and drainage
(viii) Patrol and investigate rivers, and monitor stream flows,
{ix) Conduct post-cisaster investigation and evaluation and damage assessment of flood
infrasiructures after extreme events;
(x) Conduct research and development on water and sediment-related disasters.
(xi) Develop design guidelines, criteria, and standards on flood control and drainage structures,
{xii Provide technical assistance to other agencies, LGUs, and other stakeholders,
(siti) Advise the Secretary on declaring flood control areas and recommend guidelines for flood
plain management plans in these areas, and
(xiv) Perform such related activities which are necessary for the effective performance of its
functions.
(2) Bureau of Water Quettity Management shall supervise and exercise control over all aspects of
water quality management to ensure the sustainability of the country’s water resources and the

cry


protection of the environment. It should take into account proper and integrated treatment of
freshwater and wastewater within the whole process. For this purpose. the Bureau shall
exercise the following functions
(i} Establish water quality guidelines for fieshwater and coastal or marine waters as basis
for classifviny water bodies in the country. Specifically, develap water quality indices or
composite metrics to measure the quality status and health of natural water bodies in
relation to ecological integrity and function:
(ii) Establish effluent standards for point discharges to receiving bodies of water;
(iii) Establish internationally accepted procedures for sampling and analysis:
(iv) Prepare an integrated water quality management framework,
(¥) Prepare the ten-year water quality management plans for each water quality management
area as part of the River Basin Master Plans and in support of the NWRMP:
(vidClassify groundwater sources and prepare a national groundwater vulnerability map;
(vii) Classify or reclassify all water bodies according to their beneficial usages using the
established water quality guidelines established;
(viii) Issue permits, clearances, and similar instruments pursuant to the Clean Water Act of 2004,
{ix)Collect the wastewater discharge fees for all permittees,
{<) Monitor the compliance of water discharge permittees with the effluent standards,
(xi)Regularly moniter the water quality of major water bodies in the country and analyze the
data to identify possible sources of pollution:
(xii) Issue notices of violations and/or cease and desist orders for those found im violation;
(xiii) File the needed cases againsi violators with the Water Pollution Adjudication Board
(WPAB),
(siv) Serve as secretariat of the WPAB; and
(sv) Perform such functions and activities. as may be mandated by law, which are necessary for
the effective performance of the abovementioned objectives.

(3) A Water Resources Regional Office (WRRQ) shall be organized per water resources region and
shall be responsible for implementing the mandates, powers and duties of the Department at
the field level, except for policymaking which will be vested solely in the Department. The
formulation of the master plan for the nearby river basins such as the Pasig-Marikina-Laguna
Lake-Cavite, shall be the responsibility of the Department. Each WRRO shall perform the
following duties and responsibilities:

(i) Formulate or update and coordinate the river basin master plans for river basins within its
jurisdictions ensuring consistency with the National Water Resources Management
Framework Plan;

(ii) Advocate and strongly suppart the creation and functioning of multi-stakeholder river basin

‘organizations (RBOs) and serve as the secretariat of the said RBOs,
Gil) Undertake and evafuate the planing, design, and work supervision functions of the
Department for the water infrastructures within the region,


{iv} Ensure the implementation of laws, policies, programs, rules and regulations regerding the
abovementioned infrastructure as well as public and private physical structures;

(v) Provide technical assistance related to the water-related functions of other ayeacies within
the region especially the focal government,

(vi) Coordinate with other departments, agencies, institutions and organizations. especially
local government units within the region in the planning and implementation of the river
basin master plans,

(vii) Conduct consultations with the local communities, take appropriate measures to ensure that
the services of the Department are resporsive, and recommend such appropriate actions as
may be necessary: and

{viii) Perform such functions and activities, as may be mandated by Jaw, which are necessary for
the effective performance of the abovementioned objectives
The Department shall retain existing Project Management Offices as may be required, which shall
be under the supervision and control of the appropriate Water Resources Regional Office unless otherwise
determined by the Secretary for reasons of supra- regional scope, magnitude and multi-functional
coverage.

Fach Water Resources Regional Office shall be headed by a Water Resources Regional Director
who shall be responsible for efliciently end effectively carrying out the duties and responsibilities of the
Office. Towards this end, the Water Resources Regional Director shall exercise functional and
administrative supervision over all units within the region and is authorized to commit resources and
assizn personnel to integrated regional water resources management, water supply and sanitation
nd flood control and flood risk management initiatives. The Water Resources Rexional
ies as may be assigned or delegated

management,
Director shall also perfirm such other related duties and responsil

by the Secretary or as may be required by law
The Water Resources Regional Director shal! be assisted by two (2) Assistant Water Resources

Regional Office Directors who shall exercise supervision over (1) the planning, project design and
evaluation function and (2) technical assistance to the River Basin Organizations within the water
resources region

SFC, 14 Water Pollution Adjudication Board, — These is hereby created a Water Pollution
Adjudication Board under the Office of the Secretary. The Board shall be composed of the Secretary as
Chairperson, two (2) Uinderseeretaries as may be designated by the Secretary, the Director of Water
Quality Management Bureau. and three (3) other representatives from other stakeholders to be designated
by the Secretary as members

The Board shall assume the powers and fictions of the National Pollution Control Commission
‘with respect to the adjudication of water pollution cases under Republic Act No, 3951 entitled, Av Aer
Creaiing the National Water And Air Poltuiton Control Commission, Presidential Decree 984 entitled
Providing Vor the Revision Of Republic Act No. 3931, Commonly Known as the Potiviion Control Lene,
And For Other Purposes, particularly with respect to Section 6 letters e. f, gj, k and Republic Act No.
9275. ‘The Bureau of Water Quality Management shall serve as the Secretariat of the Board. These powers

25


and functions may be delegated to the field officers of the Department in accordance with rules and
regulations 10 be promulgated by the Board
CHAPTER IL
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT
SEC. 15, Jnterface and Inytiturioncd Arrangements with Other Agencies. ~

(a) The Department of Health (DOH) shall continue to have primary authority and responsibility for
setting and enforcing drinking water quality standards, The Department shall coordinate with the
DOH inthis aspect, and shall ensure consistency of standards and targets, as well as the compliance
of permittees with mandated standards:

(b) The Department of Environment and Natural Resources (DENR) shall continue to have primary
authority and responsibility for protecting the environment and managing the country’s
watersheds,

{c) The Department of Energy (DOE) and the National Power Corporation (NPC) shall continue to
have primary authority and responsibility for establishing and operating hydropower plants, but
shalt ensure that hydropower plant development plans are consistent with the National Water
Development and Management Plan;

(d) The Deparimert shall coordinate with the DA to ensure agricultural development that reduces
Jong-term pollution for surface water and groundwater, and agricultural and industrial economic
development that employs water efficiency, water secycling or reuse. and the appropriate weatment
of wastewater.

(e) The Department shalt coordinate with the National Disaster Risk Reduction Management Councit
(NDRRMC) to ensure that its plans and designs for flood control, flood risk management and
drought risk management ate aligned with he objectives and plans of the Department;

(Q) The Department shall coordinate with Climate Change Commission (CCC), Philippine
Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), and National
Mapping and Resource Information Authority (NAMRIA) for scientific studies, integrated
surveys, mapping, charting, and decision suppor systems

(g) The Department shall coordinate with the Department of Tourism (DOT) on recreational use of
water resources,

(b) The Department shall coordinate with the Philippine Reclamation Authority and economic zone
authorities on water resources development and water requirements within reclamation areas and
economic zones, respectively, and

G) The Department shall coordinate with relevant government agencies, includiny geal government
units (LGUs), with respect 10 development projects and. shall ensure cross-cutting collaboration
between and among all water subsectors and facilitate inter-agency subsector coordination,

strategic development, planning, monitoring and provision of technical, institutional and financial

capacity building support to their different staischolders at the water subsector level.

26



SEC. 16 National Water Sector Policy Board — The National Water Sector Policy Board
(NWSPB) shall be created and shall he headed by the Secretary of the Department of Water Resources
with the Secretary of the National Economic and Development Authority as the Vice-Chairperson, and
the Secretaries ofthe DOH, DILG, DOE, DA, Department of Social Welfare and Development,
DPWH, Department of Budget and Management (DBM); Office of the President, and DENR, and National
Commission on Indigenous Peoples as members. The Department shall provide personnel to serve as
Secretariat to the Board.

SEC. 17. Powers and Funesions oof the National Water Sector Policy Board ~The NWSPB shall
perform policymaking, coordination, integration, supervision, monitoring and evalustion functions, and
shall have the following responsibilities:

(a) Approve the NWRMP which shell serve asa principal guide to water management efforts in the
country and shall be reviewed every five (S}-years interval, or as may be deemed necessary, in

order to ensure its relevance to the times;

(b) Provide overall policy direction and recommend policies on water resources requiring Presidential
decision;

(¢) Advise the President on the status of water management and supply, recommend to the President
the declaration ofa siate calamity in areas affected by water supply, and submit proposats to restore
normalcy in the affected areas,

|-stakeholder participation in the development, updating, and sharing of information

system as policy, planning and decision-making tools consistent with IWRM

SEC.18, Transfer of Rights ancl Obligations, ~ Tae Department shall, by virtue of this Act, be
subrogated to all the rights and assume ail the obligations of the government agencies and units whose
powers and functions have been subsumed, absorbed, transferred or attached to the Department in
accordance with the rules and segulations of the Commission on Audit, and the Ci
and other applicable laws. The transfer of powers and fianctions as herein provided shall take effect within
six (6) months of the effectivity of this Act. As such, all affected agencies, offices, units shall continue to
function under their present mandates.

(d) Ensure a mui

ivil Service Commission,

CHAPTER IV
WATER REGULATORY COMMISSION

SEC.19. Warer Regulatory Commission. ~ There is hereby created and established as an
independent, quasi-judicial regulatory body tobe knownas the Water Regulatory Commission, hereinafter
referred to as the Commission, which shall be organized within one hundred twenty (120) days after the
effectivity of this Act.

‘The Commission shall be placed under the administrative supervision of the Department as an
attached agency.

The Commission shall haye a Board of Commissioners, and shall be vested with powers and
functions, as conferred and set forth hereunder.

SEC. 20, Te Regulatory Units, —The egulatory units of the Commission shall be composed of

the central regulatory unit and the regional regulatory units

Pa



The economic regulatory units and functions of the MWSS, NWRB, LWIA, SBMA, PEZA, and
TIEZA are hereby transferred to the Commission, and shall collectively comprise its. entral egulatory
unit for water supply and sanitation services that. (a) provide services to more than one province, and (b)
are owned, operated and/or maintained by special economic zones and Metro Manila concessionaires.

The :eional vegulatory nits shall be established by the Commission in accordance with this Act

and the rules, regulations, guidelines, and standards that the Commission shall issue

SEC 21, Powers and Munetions of the Commission — The overall authority and powers of the
Commission shall cover and apply to all service providers, whether private or public, providing or
intending to provide levels If & IIL water supply, including suppliers to subdivisions and Ae ather service
providers, sewerage, and/or septaze treatment and disposal services for domestic, residential, institutional,
indusirial or commercial use

The Commission shall exercise the following powers and functions:

(a) Issue and promulgate rules, regulations and guidelines as may be necessary to implement and
enforce its powers and functions under this Act,

{b) Promulgate and enforce just and reasonable technical standards, classifications and
measurements of service,

(c) Establish rules and regulations to monitor, avoid, and provide remedies for any market power
abuse or anti-competitive or discriminatary set or behavior by or against any participant in the
water supply and sanitation sector. Upon finding that a market participant has engaged in, or
has fallen victim to such act or behavior, the Commission shall act to stup of redress the saine,
Such remedies may, without limitation, include the imposition of price comrols, issuance of
injunctions, requirement of divestment or disgorzement of excess profits, invalidation of
contracts and imposition of fines and penalties pursuant to this Act

(d) Adopt and require that books, records, and accounts be kept and maintained in accordance with
the prescribed uniform accounting system,

(e) Fix and determine proper and adequate rates of depreciation of properties and equipment used
in water supply and sanitation services,

(© Impose and collect annual levies determined as a percentage of gross revenue accruing in

relation to the licensed activities, and reasonable fees and surcherzes as may be necessary for
achieving the purpases, powers and functions of the Commission;

(a) Require the submission reports of finances and operations, verified under oaths by the owner
or president and secretary of the board of the licensee,

(h) Determine and require the monitoring and submission of such data, statistics and other
information from the ‘egulatory nits and any or all licensees as may be necessary for the
effective and efficient exercise of its duties, functions, powers and responsibilities

(i) Investizate, more propre or upon 4 written complaint, any matter concerning the operation of
the servive and issues on price manipulation and anti-competitive behavior;

(j) Impose penalties and fines ayainst any licensee or against its owners, directors. officers, agents
or representatives for any violation of this Act or of the license, order, rule regulation or

2B


requirement issued by the Commission:

(k) Require any licensee to pay the actual expenses incumed by the Commission in any
investigation if it shall be found that a licensee violated any provision of this Act or of the
ivense, order, rule cegulation or requiremtent issued by the Commission

(0) Advise, apprise and coordinate with other relevant agencies of the national or local government
on any matter relating to water supply and sanitation services,

(m)Deputize agents, whether fiom the public or private sector, to assist in the performance of any
of the powers and functions of the Commission,

(n) Appoint an interim or temporary management committee upon appeal and after due hearing,
to ensure continuity of service in case a licensee fails to meet conditions of the license and the
concerned Regulatory Unit fails or refuses to appoint an interim management committee as
provided in the following section

(o} Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, with suitable
‘qualifications and experience, as necessary;

(p) Exercise original and exclusive jurisdiction over all cases contesting rates. fees, fines and
penalties ieposed by the regulatory units in the exercise of their powers, functions and
responsibilities, as provided under this Act, and over all cases involving disputes between and
‘among participants or stakeholders ir the water supply and sanitation services; ant

{q) Such other incidental powers and functions as may be necessary to attain the objectives of this
Act,

SEC. 22. Powers and Functions of tie Regulatory Units. The regulatory units of the Commission:

shall have the following powers end functions:
(a) Issue licenses authorizing the operation of water supply and sanitation services in any
specified area or areas within the Philippines.

(b) Impose fines, charges and other penalties upon any provider and/or its officers and
stockholders who shall fail or refuse to revister or obtain a license prior to operation or
commencement of business, as provided hereunder
Review, determing, fix, and approve, consistent with the rules, guidelines, procedures and
methodologies which the Commission shall provide, proposed water and sewerage and
septage manegement wriffs, rates and cherges that Ticensees may impose upon their

io

consumers,
(d) Appraise and value property and equipment used by licensees in providing water supply and
sanitation services.

(e) Enforce technical, financial, and other performance standards set by the Commission for

licensees or utilities:

{8 Respond to consumer complaints and ensure the adequate promotion of consumer interests
and investigate mot propio price manipulation and anti-competitive behavior;

{g) Investigate accidents directly or indirectly arising from or connected with the maintenance or
operation of the service, and make such order or recommendation as the public interest may

29



warrant,

(h) Require the review and/or approval of contracts or agreements thet may impact on the tariff
and rates of service provision entered into by service providers upon petition or motu propio
where in its determination public interest so dictates,

(i) Require the submission of reports, plans, and other documents that define the performance
targets of the licensees or utilities, and regular accomplishment reports:

(Impose and collect annual levies determined a3 a percentage of gross revenue accruing
in relation to the licensed activities, and reasonable fees and surcharges as may be necessary
for achieving the purposes, powers. and functions of the regulator,

(k) Conduct benchmarking and monitor the performance of licensees or utilities under their
jurisdiction, and publish reports detailing the results thereof, as may be necessary
or required by the Commission;

(1) Amend, modify, suspend, or revoke any license issued by them, after due notice and hearing,
on any of the following grounds:

{1) when the facts and circumstances on the strength of which the license was issued have been
materially misrepresented or have materially changed,
(2) where the licensee has failed 10 meet or comply with terms, conditions, and performance
targets, including but not limited fo service expansion, that may have been set in the ficense
{3) where the licensee is found to be manifestly inefficient in the operation of or provision of
water supply and sanitation services in its area, or
(4) when the licensee thereof has violated or willfully refused to comply with any order, rule
or regulation of the Commission or any provision of this Act.
(m) Appoint an interim management committee to ensure continuity of service in case a licensee
fails to meet the conditions of the license: and
(n) Submit performance plans and reports as required by the Commission
SEC. 23, Composition of the Waier Regulatory Commission
{a) The Commission shall be a collegial body composed of five (5) full-time members consisting of
8 Chairperson and four (4) members, who shall all be appointed by the President of the
Philippines. All members of the Commission must be citizens and residents of the Philippines. at
least thirty five (35) years of age, and of good moral character, of recognized integrity and
competence in the field of law, business, commerce, finance, accounting or public administration,
water or utility economies, management, physical or engineering services, hydrology and other
related services, with at least three (3) years of actual and distinguished experience in their
respective fields of expertise: Provided, That out of the four (4) members of the Commission, at
Jeast one (1) shall he 2 member of the Philippine Bar with at least ten (10) years of experience in
the active practice of law, and at least one (1) shall be a certified public accountant with at least
ten (10) year’s of expericnee in active practice,
(b) The term of office of each member of the Commission shall be seven (7) years. Provided, That
among the members first appointed, the Chairperson shall serve for a period of seven (7) years,

30


two (2) members shall serve for five (5) years and the other two (2) members shall serve for
three (3) years: Provided further, That any member whose term has expired as specified herein
shall serve as such until a successor shall have been appointed and qualified: Provided
furthermore, That any appointment to fill a vacancy in the Commission arising tiem death,
removal, retirement or resignation shall be made only for the unexpired term: Prowidedl, finally,
‘That inno case shall any member serve for more than seven (7) years in the Commission.
(c)The Commission shal! meet as often as may be necessary on such day or days as the Chairperson
may fix. The presence of at least three (3) members of the Commission shall constitute a quorum,
which shall be necessary for the transaction of any business, The affirmative vote of majority of
the members of the Commission where a quorum is present shall be necessary for the adoption of
any order, resolution. decisions, or other act of the Commission in the exercise of its qua:

fianctions: Provided, That in promulgating rules, regulations, guidelines and in exerci
quasi-legistative functions, an affirmative vote of three (3) members shall be required,
(4) The Chairperson of the Commission shall exercise general executive control and supervision
‘over the Commission and its members, staff and personnel, agents and representatives. Within
three (3) months from the creation of the Commission and the appointment of all Members of
the Commission, the Chairperson shall determine and establish the organizational structure and
plantitle positions necessary to carry out the powers and functions of the Commission, including
those of the central aad provincial regulatory units subject to the review and approval of the
DBM
The pwantilla positions of the Commission shall be filled by regular appointments in accordance
with Civil Service laws, rules, and regulations. Members of the Commission shall enjoy security
‘of tenure and shall not be suspended or removed from office except for just cause as specified by

law.
(e)The Chairperson and members of the Commission or any of their relatives within the fourth civil
degree of consanyuinity or affinity, legitimate or common law. shalt be prohibited from holding

any interest whatsoever, sither as investor, stockholder, officer or director, in any company or
entity engaged in provision of water supply and distribution. septage management and sewerage
services and must, therefore, divest through sele or legal disposition of any and all interests in the
water sector upon assumption to office.
SEC 24 Svererariat of the Commission, ~ The Commission shall establish a Secretariat which
shall provide the Commission with technical and support services including the following,
(a) Provide the necessary technical inputs and secretariat sapport to the Commission to facilitate the
conduct of its functions:
{b)Coordinate with Regulatory Units to ensure proper implementation of the rules, regulations and
guidelines promulgated by the Commission.
(c)Monitor and assess activities of the Regulatory Units vis-i-vis their respective annual performance
plans and targets:
{d)Maintain a database on the water supply and sanitatioa subsector: and

aL



{e)Coordinate with other relevant agencies of the national or local government on any matter relating
to water supply and sanitation.

SEC, 25, Executive Director. — The Commission shall appoint an Executive Director who shall
head the Commission Secretariat, keep and maimiain the official records of the Commission, render a
report on the proceedings of the Commission, and administer oaths in all marrers falling within the
jurisdiction of the Commission.

‘The Executive Director shall be responsible for the effective implementation of the policies. plans,
programs, rules, regulations and directives of the Commission; coordinate and supervise the activities of
the different operating units under the Commission: and perform such functions as may be assigned by
the Chairperson and/or other members of the Commission.

SEC. 26 Compensation and Other Emoluments. ~ The compensation of the members of the
Commission and its staff shalt conform to provisions of Republic Act No. 6758 as amended, otherwise
known as the Compensation and Position Classification Act of 1989,

CHAPTER V
REGISTRATION AND LICENSING

SEC. 27, Regivration and Liewnsing of All Water Supply and Sanitation Services. — Ai\ water
supply and sanitation service providers, including bulk water suppliers and those providing services t0
subdivisions and other service providers, shall register with the Commission and, subject to such rules,
guidelines, procedures and other issuances of the Commission, obtain a license to operate from the
appropriate regulatory units,

The Commission shall ensure that the grant and revocation of licenses are carried out fairly,
Iransparently, and without discrimination. Issuances of the Commission shall specify, among others, the
qualifications, requirements, and procedure for the xrant and revocation of licenses including the standards
and performance targets that shall continuously be complied with to keep the licenses valid.

Unless otherwise provided in this Act or by the Commission, no public water supply and sanitation

service provider shall commence or conduct the business of providing-water supply and sanitation services

without first obtaining a license.

Concession agreements and other contracts for water supply provision and water sanitation and
treatment services cverently existing, shall remain valid and enforceable unless otherwise terminated, after
due notice and hearing for reasons provided in the existing terms and conditions under the concession or
service agreement or contract, or when invalidated by the Commission, after due notice and hearing, where
national security, national emergency or public interest so dictates.

SEC 28 Conditions of License. ~ ‘The Commission or the concerned regulatory unit, may impose
such conditions on the licensee as it may deem necessary. such as

(a) Tariffs, rates and charges that may be imposed from its customers or consumers.

{b) erm fixing the duration of the privilege

(c)Grounds for modification, suspension or cancellation of the License

(d)Minimum technical performance and service level standards,

(eJExpansion targets and service level improvements over time,

32


(Restrictions or conditions for transferability of the business or controlling interest in the

business.

(g)Reportorial requirements and obligations of the grantee.

(h)Submission (© annual performance audit by the Commission or its duly authorized

representative(s).

The Comntission shall spocify the requirements and procedure for evisting holders of . Cerificate
of Public Convenience (CPC), Certificates-of Public Convenience and Necessity (CPCN) issued by
NWRB, of Certificate of Conformance (CoC) issued by LWUA, to convert their existing certificates into
licenses to operate in accordance with See. 27 herein.

All existing providers of water supply and sanitation services without a fegal and valid Certificate
of Public Convenience, Certificate of Public Convenience and Necessity or Certificate of Conformance

shall vegister with the Commission and apply for a license within six (6) months from the effectivity of
this Act.
SEC. 29, Higghts cond Duties of Licensees. ~
fa) Any person granted a license under this Act shall have the obligation to ensure that licensed
activities are conducted to further public interest and, in particular

(1) Foster the maintenance and development of efficient, coordinated, and viable operation of
their ficensed activities,

(2) Ensure thet their water supply and sanitation services are provided in a diligent, conscientious
and workman like manner, in accordance with applicable laws rules and regulations issued
by the Commission and the generally accepted standards and practices of the water supply
and sanitation industry, and

(3) Comply with drinking, water quality requirements and standards that may be established by
the Commission.

(b) Any person granted a license under this Act shall, to the extent allowed by law and specified in the
license, has the right to acquire or lense land, lay of repair water or sanitation main lines and other
to fulfill the terms and conditions under the license,

relevant facilities in public way:
{c)Subject to any condition or limitation laid down in the license, a licensee may discontinue water
supply and sanitation services to @ customer if such customer defaults in the payment of fees due to
the licensee for the water supplied or sanitation services provided, or for acts of pilferage pursuent
to Sections 8, 9. 10, and || of Republic Act No. 8041, otherwise known as the Water Crisis Act of
1993
(a) Any license issued under this Act shall contain provisions designed to ensure that licensees.

(1) Publish the Tariff and other charges approved by and the terms and conditions imposed by the
Commission for the provision of water supply and sanitation services.

(2) Prepare, within three (3) months from the issuance of a license, in consultabon with its
customers, a Customer Service Code specifying the manner and procedure for. (a) metering,
billing. and collection of the licensee's approved tariff and ther charges, (b} disconnection or
suspension of service in case of non-payment of tariffs and/or other charges, or acts of

3B


pilferage. and (c) recommendation and recovery of arrears in tariffs and other charges;

(3) Maintain financial accounts in accordance with the manner and procedure specified in the

license and as may be required by the Commission; and

(4) Maintain and upon request by anyone during regular office hours, promptly make available for

scrutiny and inspection such data, statistics and other information, as may be required by the
Commission,

SEC. 30. Setting tariffs, Rates. and Other Charges. ~ Regulatory units shall establish tariffs, cates
and other charges which are fair and reasonable, and ensure economic viability and a fair return on
investments,

Tariffs, rates and charges shall be based on and consistent with a rate-setting methodology that the
Commission shall, after due consultation, define and publis}, taking into account the following, among
others.

(a) Reasonable and prudent capital and recurrent costs of providing the service including a

reasonable rate of retura on capital;

{b) Efficiency of the service;

(c) Incentives for enhancement of efficiency:

(d) Willingness to pay of the customers/consumers,

{e) Equity considerations, and

(2) Administrative simplicity.

Tatitls, rates, and charges set by the rewulatory units shall be presumed valid and reasonable unless
@ protest or contest is filed with the Commission.

SEC.31. Direct Access. - Fifty-one (51) percent of the registered water consumers in
municipality, city or province may petition for direct access to water from any water service provider
subject to concurrence by the service provider and approval by the Comission The Commission shall
promulgate rules and procedures for this made of service

SEC. 32 Innovative Schemes to lmprove bfficency ant Managemen of Systems. ~ The
Commission shall promote innovative schemes such as the consolidation of integration of water supply
and sanitation services, or providers in the same service area, where it shal] result in improved efficiency,
service expansion and lower costs

To this end, the Commission shall establish and issue such rules and guidelines as may be
necessary to (a) create incentives to encourage efficiency and service expatision, (b) establish the standards
and targets that service providers are required to meet, and (c) define the fines and penalties that shall be
imposed for fitilure to mect such standards and targets.

CHAPTER VI
QUASLJUDICIAL FUNCTIONS OF THE COMMISSION

SEC. 33. Proceedings Before the Commission ~ For the purpose of any investigation, inquiry or
proceeding, the Commission shal

(a) Issue subpacaa duces recum and subpoena ad testificandum,

(b) Appoint hearing officers to hear and receive evidence on behalf of the Commission;



(c) Cite any person or party for contempt for refusal to appear, testify, or comply with an order of
the Commission on any matter that is the subject of investigation, inquiry or proveeding before:
the Commission

SEC. 34. Orders and Decisions of the Commission. — Any order, resolution, or decisions of the

Commission shall be promuluated promptly, expeditiously, reasonably, and in writing, and shall state
clearly and distinctly the facts and law on which it is based

The Commission shall publish and make available for public inspection. all decisions and final

orders in the adjudication of contested cases or applications

SEC. 35. Appeals Procedure and Prohibition Againss Injunction. -

(a) The orders, rulings, and decisions of the Commission are final and executory unless appealed
to the Court of Appeals within fifteen (15) days trom receipt of notice of such order, ruling or
decision: Provided, That orders, rulings, and decisions of the Commission approving tariffs,
shall be immediately executory and may be suspended only upon appeal and filing of a bond,
in an amount to be fixed by the Commission, to answer for damages occasioned by the
suspension or stay of execution of such arders, rulings, and decisions

(b) No injunction may be issued by any court or administrative agency to restrain any proceeding
before, or the implementation or execution of any order, ruling, or decision of the Commission,
except on the basis of a question of law brought before the Supreme Court on eerviorari

(c) Any act or decision of the Commission shall not be invalidated merely because of a defect or
irregularity in, or in connection with, the appointment or vacancy in the Office of the
Chairperson or any other member of the Commission,

CHAPTER VIL
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION
SEC. 36, duterface with Oder Sector Regulatars, ~
(a) The DENR shall continue to exercise primary jurisdiction over programs aimed at -protecting
the environment and the quality of water sources from waste and pollution, and shall
promulgate rules, regulations, and standards in this regard. The Department of Health (DOH)

shat! continue to exercise primary jurisdiction over the determination and enforcement of
standards for quality drinking water and sanitation,
{b) The Commission shall coordinate with the
(1) DOH to ensure that the standards and targets for quality drinking water and stnitation are
consistently complied with;
(2) LGUs for development projects relating to water supply and sanitation, aml
(3) Department of Public Works and Highways for flood control and harnessing and
impounding of water
SEC. 37. Transfer of Rigins ant Obligations. ~ The Commission shall. by virtue of this Act, be
subrogated to all the rights, and assume all the obligations, of the Water Utilities Division of the NWRB,
the regulatory offices of MWSS and LWUA, the equlatory nits ef all special economic zones. and all

38


other government agencies and units whose powers and functions have been transferred to the
Commission

The transfer of powers and functions to the Department of the concerned agencies as herein
provided for, shall be deemed completed within six (6) months after the effectivity of this Act. The transfer
‘of powers and functions shall include all applicable funds, personnel, records. property and equipment, as
may be necessary. The same shall apply to agencies which have been attached to the Department by virtue
of this Act.

All agencies transferred, subsumed and attached to the Department, shell continue to firnetion
under their present mandates until the six-month transition period mandated under this Act shail have
lapsed. The heads of the affected agencies shall continue to serve until replaced

All rights and obligations of the affected agencies are hereby transferred to and assumed by the
Commission, and shall be acted upon in accordance with the rules and regulations of the Commission on
Audit and other pertinent laws, rules, and regulations

SEC. 38, Absorption ur Separation from Service of Employees of the Subrogated Agencies. Tne
current employees of the Water Utilities Division of the NWRB, the regulatory offices of MWSS and
LWUA. the regulatory units of al] special economic zones, and all other government agencies and units
whose powers and functions have been transferred to the Commission shatl enjoy security of tenure, and
shell be absorbed by the Department, in accordance with their staffing pattem and the selection process as
prescribed under Republic Act No. 6656 or the Government Reorganization Law.

Employees opting to be separated from the service as a consequence of the consolidation, and
reconstitution under the provisions of this Act shall, within one (t) month from their separation or phase
out from the service, receive separation benefits in accordance with existing laws, and those who are
qualified to retire shal! be allowed to retire and be entitled to all benefits under existing retirement laws.

SEC. 39. Water trast Fiat ~ There is hereby created Water Trust Fund in the Bureau of
Treasury All non-tax revenues, including raw water pricing, permit fees, registration fees, supervision
and regulation enforcement fees, filing fees, testing fees. and other service income from the use of water
resources shall be remitted to the Water Trust Fund. The trust fund shall be accounted separately from the
government's general revenues and shall be automatically appropriated to the Department. Proceeds from
the trust fund shall be utilized for water development, water sanitation and waste water treatment and
management, and water sustainability programs and projects authorized under this Act Provededl, That a
maximum of ten percent (10%) of the total income generated from raw water extraction shall be given as
share of the concerned local government unit or indiyenous peoples (IP} community who own the specific
areas or land where the raw water was sourced.

CHAPTER VU
PINAL PROVISIONS.

See. 40. Applicabiliny of Have of Doing Business Law. ~ The prescribed processing time provided
under Section 9.b of Republic Act No. 11032, otherwise known as the Lave of Doing Business aid
Efficient Government Service Delivery Act of 2048, shall be applicable to all agencies and LGUs covered

under this Act particularly on accessing goverment services.


See. 41. Transitory Provisions, ~ Performance audit of all water-related ayencies and institutions,
including LWUA and water districts, MWSS, MWSS-RO and its concessionaires, LGU-run utilities,
Tourism Infrastructure and Enterprise Zone Authority, Philippine Economic Zone Authority, Bases
Conversion and Development Authority, Subic Bay Metcopolitan Authority, DILG, and NIA, shall be
conducted by the Department

SEC. 42. Approprialions — The amount necessary to cover the initial implementation of this Act
shall be charged against the currents year’s appropriations of the agencies and offices transferred and
subsumed by the Department and the Commission in the General Appropriations Act Thereafter. such
sums as may be necessary for the continued implementation of the Act shall be included in the annual
GAA

SEC. 43, Implememing Rules and Regulations. ~ Within one hundred eighty (180) days from the
effectivity of this Act. the Department, NEDA. DBM. DENR, CSC, in consultation with concerned
sovernment agencies, the Presidential Legislative Liaison Office shall promulgate rules and regulations
for the effective implementation of this Act

SEC. 44. Separability Clause. —W any reason, any portion or provision of this Act shall be held

unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be in full force
and effect,

SEC. 43, Repeating Clause. — (a) The following provisions are hereby repealed:

1) Section 3 (h) and Section 12 on the provision with respect to fixing of water rates and sanitation
service fees, Section 3 (n) on the provision with respect to regulation of waterworks and deep wells, and
Section 3 (p)on the provision with respect to regulation of waterworks and sanitation systems in privately
owned subdivisions of Republic Act 6234 entitled, dar Act Creating The Metropolitan Waterworks And
Sewerage Systent And Dissotving Uhe National Warerworks And Sewerage Authority, And Por Other
Purposes, as amended.

2) Title ILI on Local Water Utilities Administration Law of Presidential Decree No. 198 otherwise
known as the Provincial Water Unlities Act of 1973, as amended by Letter of Instruction No. 700 -
Providing Measures To Comrol And Regulate Increave ln Woter Rates, Letter of Instraction No. 744 ~
Relative To Reliable Water Supply At Reasonable Rotes In The Conuyside on the, Executive Order No
124, 30 January 1987 - Reorgemization Act of the Ministry of Public Works aud Highways, Executive
Order No. 123, 30 January 1987 - Keorganization Act of Miuisiry of Social Services aud Development.

3) Republic Act No. 3601 as amended by Presidential Decree No. 582 and Presidential Decree
No. (702 pertaining to the creation of the National Lrigation Administration:

4) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order No, 124, dated
30 January 1987, Reorgantsing the Department of Publie Works and Highways, Redefining lis Powers
and Functions, aml For Other Purpases on renaming and reorganizing the National Water Resources
Council into the National Water Resources Board.

(b) The following provisions are hereby amended accordingly

}) Section 3 paragraph 3 Commonwealth Act No. 146, as amended, otherwise known as the Public

Service Act pertaining to all cases involving the fixing of rates,

37


2) Section 154, Article V, Chapter I, Title One, Book Il of Republic Act No. 7160, as amended,
otherwise known as the “Local Government Code of 1991", and its implementing rules and regulations
on the power of the local government units to fix the rates of water utilities owned, operated and
inainiained by them within their jurisdiction is hereby repealed or modified accordingly

3) Section 13 (b) on the regulation of enterprises within the Feonomic Zone under Republic Act
No. 7916 as amended, otherwise known as “The Special Economic Zone Act of 1995")

4) Section 69 of Republic Act No. 9593 otherwise known as “The Tourism Act of 2009" and its
implementing niles and regulations which mandate the Tourism Infrastructure and Enterprise Zone
Authority to grant franchises. supervise the operation of public utilities, and register, monitor and regulate
enterprises within Tourism Enterprise Zones, are hereby repeated or modified accordingly,

5} Sections 7 and 8 on the adjudication of water pollution cases under Republic Act No. 3931
entitled, 4 4er Creaimg The National Weter Al Air Pollution Control Commession, particularly with
respect to Section 6 letters e, f g. j. k Presidential Decree 984 entitled, Providing for the Revision of
Republic Act No, 3931, Commonty Known as the Pollaion Comrol Lan, anal For Other Purposes:

6) Sections 41) and 7 of Republic Act No. 9275, otherwise known as the “Philippine Clean Water
Act of 2004",

7) Anicies 3(d) and 79 of Presidential Decree No. 1067, otherwise known as The Water Code of
the Philippines;

8) Sections 9. 10. 11. 12 and 13, Chapter fl of Presidential Decree No. 856, otherwise known as
the “Code on Sanitation of the Philippines”; and

9) Section 3.2 (b) of Executive Order No. 149 Series of 1993 transferring the Laguna Lake
Development Authority from the Office of the President to the Department of Environment and Natural
Resources,

All other laws, presidential decrees, executive orders, presidential proclamations, cules and
regulations, or paris thereof which are inconsistent with the provisions of this Act are hereby repealed or
amended accordinaly.

SEC 46, Affecrivity, — This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation

Approved.