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Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House BLL NoO194

Introduced by: REP. NOEL L. VILLANUEVA.

EXPLANATORY NOTE

Forest-based resources are the foundation of the country’s economy, society, culture,
and politics. Although renewable, these natural resources are still susceptible to depletion and
soon enough disappearance, if managed in accordance with unsustainable practices and very
abusive activities.

This is the underpinning rationale why the Philippines needs a legislation on the
sustainable management of forests because it is the key to conserve the ecosystem goods and
services that the Filipino people receive from the forests. To ensure the sustainability of these
g00ds and services, the bill proposes certain features that will aid in achieving sustainable forest
management in the country, the following are:

1. Declaration of a commercial logging ban within protection forests to protect the
remaining untouched forests in our country and allow the degraded or denuded natural
forests to regenerate.

Establishment of a National Forest Monitoring, Assessment, and Reporting System to
collect, generate, manage, maintain, and update data and information pertaining to the
physical, social, economic, biological, and environmental components of forests and
forestlands using appropriate technology, and ground-based validation system as basis
for assessing progress towards sustainable forest management.

3. Development of a Philippine Forest Certification System to ensure that forest
‘management units are managed in accordance with the principles of sustainable forest
‘management. This system will also outline the procedure for a chain-of-custody in the
country for forest-based resources to guarantee legality of our forest-based goods

4, Enhancement of the participation of the private sector in forest development to
encourage large scale investments in forest management, forest-based industries and
natural resources which can result in inclusive growth for forest-dependent
communities by providing livelihood options for the people and the opportunity to
uplift their social welfare

MAR OG ary


5. Deregulation of harvesting of planted timber and non-timber forest products within
privately owned lands to encourage the development of plantations and production of
‘stint Glside euler toon

This proposed measure aims to ensure that our forests meet the needs of the present
without compromising the needs of the future generations, With sustainable forest
management, the Philippines can regain the original health and vitality of its illustrious natural
resources

‘Thus, immediate passage of this bill is eamestly sought.

REP. NOEL L. VILLANUEVA
Third District, Tarlac


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

5194

HOUSE BILL NO. *
Introduced by: REP. NOEL L. VILLANUEVA.

AN ACT PROVIDING FOR
SUSTAINABLE FOREST MANAGEMENT AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
ARTICLE I
BASIC FORESTRY POLICIES

SECTION 1. Short Title. — This Act shall be known as the “Sustainable Forest Management
Act of 2017."

SEC. 2 Basic Policies. — In conformity with the provisions of the Constitution to promote the
general welfare and social justice in all phases of national development, to protect and advance
the right of the Filipino people to a balanced and healthful ecology in accord with the rhythm.
and harmony of nature, and to conserve and develop the patrimony of the nation, the State
hereby adopts the following policies relative to the conservation and management of
forestlands and their resources:

(a) That specific limits of forestlands, after these have been fixed and demarcated, shall not
be altered, except through an act of Congress;

(b) The use of forest resources shall beara social function, responsibility and accountability
to promote the common good; and

(c) The management, protection, conservation and development of forest resources shall
be integrated and sustainable, focusing on the resource and the people who manage,
conserve and benefit from it,

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

(1) Watershed as the Basic Forestland Management Unit, —Forestlands shall be conserved,
developed and managed utilizing watershed as the basic management unit and under
the concepts of sustainable and multiple-use management, including the conservation
of biodiversity;

(2) Multi-sectoral Participation. — The participation of all sectors of society in sustainable
forestland conservation, management and development shall be promoted. Equitable
sharing of the benefits derived from forestlands shall be ensured at all times;


(3) Community-based Forest Management (CBFM) as a Principal Strategy. — Vesting
access rights and responsibilities to dependent families, local communities and
indigenous peoples to undertake the management and development of appropriate
forestland resources on a sustainable basis shall be the principal strategy;

(4) Protection of Forestlands and Natural Resources as Priority Concern, — The protection
of forestlands, especially protected areas and the natural resources in these areas, shall
be given prionty concern in order to ensure environmental stability, enhance biological
diversity, increase productivity and provide economic benefits:

(5) Reforestation as a Priority Measure. - Economic and ecological reforestation shall be
given priority emphasis in order to rehabilitate and restore the usefulness or
productivity of open and/or denuded and degraded forestlands as well as increase the
income of communities concemed;

(6) Security of Tenure of Stakeholders, ~ In pursuance of the Principles of sustainable and
multi-use forest management and equitable access to forest resources, a secured tenure
shall be guaranteed to stakeholders concemed; and

(7) Professionalism in the Forest Service, — A dynamic, professional and people-oriented
forest service shall be established and fully supported by the government.

SEC. 3 Definition of Terms, — As used in this Act, the term:

(a) “Afforestation” shall refer to the planting of trees or the artificial establishment of a
forest in areas that were not previously forested.

(b) “Agro-forestry” shall refer to a strategy for the sustainable management of lands which
increases their overall productivity by properly combining agricultural crops and/or
livestock with forest crops simultaneously or sequentially through the application of
‘management practices which are compatible with the local climate, topography, slope,
soil, as well as the cultural patterns or customary laws of the local population

(c) “Agricultural lands” shall refer to lands of the public domain which have been
delimited, classified and declared as such, and are available for disposition under the
provisions of Commonwealth Act No. 141, as amended, otherwise known as the Public
Land Act.

(4) “Ancestral domains” shall refer to all areas generally belonging to indigenous cultural
communities (ICCs) or indigenous peoples (IPs) as defined in Republic Act No. 8371
or the Indigenous Peoples Rights Act (IPRA) of 1997

(c) “Ancestral lands” shall refer to lands occupied, possessed and utilized by members of
the ICCs/IPs as defined in the IPRA.

(f) “Biological diversity or biodiversity” shall refer to the variability among living
organisms including, inter alia, terrestrial, marine and other aquatic ‘ecosystems and the
ecological complexes of which they are part. This includes diversity within and between
species and ecosystems


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(g) “Buffer zones” shall refer to identified areas outside the boundaries of and immediately
adjacent to protected areas pursuant to Section 8 of Republic Act No. 7586 or the
National Integrated Protected Areas System Act of 1992 (NIPAS Act) that need special
development contro! in order to avoid or minimize harm to the Protected area,

(h) “By-product” shall refer to any part taken from wildlife Species such as hides, antlers,
feathers, fur, internal organs, roots, trunks, branches, leaves, stems, flowers and the
like.

(i) “Certification” is the process of verifying that a forest is managed and meets the
requirements of a defined standard and conducted by an accredited third party.

G) “Commercial logging” shall refer to the cutting or felling of trees for the Purpose of
disposing of the cut or felled logs for economic gains beyond survival and livelihood
‘means.

(k) “Communal forest” shall refer to a tract of forestland set aside and established for and
under the protection, administration and management of a city, municipality or
barangay as a source of wood material for fuel, shelter and manufactured products: as
4 source of water for the community; and area for ecotourism and/or environmental
Protection or socioeconomic projects of local goverment units consistent with
sustainable development

(1) “Community-based Forest Management Strategy” shall refer to all organized efforts of
government to work with forest-dependent families and communities inside and
adjacent to public forestlands with the intent to empower them and entrust to them the
Protection, rehabilitation, management, conservation and utilization of forestlands and
their natural resources,

(m)*Conservation” shall refer to planned protection and management of forests ad their
eSources 50 as to prevent waste and ensure future tse

(n) “Conveyance” shall refer to any vehicle, vessel, device or animal used in gathering or
transporting forest products.

(0) “Co-production agreement” shall refer to an agreement entered into by and between a
qualified person and the goverment for the former to develop, utilize and manage,
consistent with the principles of sustainable development, a private land or portion of &
forestland wherein both parties agree to provide inputs and share the products or their
equivalent cash value

(p) “Critical watershed” shall refer to a drainage area of a river system supporting existing
and proposed hydroelectric power, irrigation works or existing water facilities needing
immediate protection and rehabilitation to minimize erosion and improve water yield.

(q) “Department” shall refer to the Department of Environment and Natural Resources
(DENR).

(1) “Denuded forestlands” shall refer to former forested lands but are now devoid of trees
due to human activities,


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(s) “Degraded forests” shall refer to all forestlands containing less than five (5) square
meters in basal area per hectare of commercial tree species with diameters at breast
height or diameter above buttress of less than sixty-five (65) centimeters.

(0) “Environmentally critical project” shall refer to a project or program that has high
Potential for significant negative environmental impact.

(u) “Environmental Compliance Certificate (ECC)” shall refer to the document issued by
the Department certifying that a proposed project or undertaking will not cause a
significant negative impact on the environment; that the Proponent has complied with
all the requirements of the Environmental Impact Assessment (EIA) System in
accordance with Presidential Decree No, 1151 or the Philippine Environmental Policy
and Presidential Decree No, 1586, establishing an Environmental Impact Statement
System, and that the proponent is committed to implement its approved Environment
Management Plan found in the Environmental Impact Statement (EIS) or mitigation
measures identified in the Initial Environmental Examination (IEE),

(v) “Environmental Impact Assessment” shall refer to the process of predicting the likely
environmental consequences of implementing a project or undertaking and designing
the appropriate preventive, mitigating or enhancement measures.

(w)"Environmental Impact Statement System” shall refer to the organization,
administration and procedures that have been institutionalized pursuant to Presidential
Decree No. 1586 for purposes of assessing the significance of the effects of any project
or undertaking on the quality of the physical, biological and socioeconomic
environment and designing the appropriate mitigating and enhancement measures.

(x) “Forest” shall refer to land with tree crown or equivalent stocking level of more than
ten percent (10%) and an area or more than half a hectare. The trees should be able to
reach a minimum height of five (5) meters at maturity sn sine. It may consist either of
closed forest formations where trees of various stories and undergrowth cover a high
Proportion of the ground or open forest formation with a continuous vegetation cover
in which tree crown cover exceeds ten percent (10%). Young natural stands and all
plantations established for forestry purposes which have yet to reach a crown density
of ten percent (10%) or tree height of five (5) meters are included under forest, as are
areas normally forming part of the forest area which are temporarily unstocked us a
result of human intervention or natural causes but which are expected to revert to forest
Forests include such stand types as dipterocarp, pine, mossy, molave, beach and
mangrove. For the purpose of this Act, natural forests may be classified according to:
(1) primary-use and management, a forest shall be classified as either protection forest
01° production forest after its most suitable and dominant multi-use function has been
determined pursuant to this Act; and (2) growth formation, a forest is classified as either
closed forest or open forest. Closed forests have trees in various stories and
undergrowth that cover a high proportion, greater than forty-percent (40%) of the
ground and do not have a continuous dense grass layer. Closed forests are either
managed or unmanaged forests, primary or in advanced state of reconstitution, and may
have been logged over one or more times but have kept their characteristics of forest
stands, possibly with modified structure and composition. Open forests have trees that
are of discontinuous layer, with a coverage of at least ten percent (10%) and less than
forty percent (40%).


(y) “Forest charges” shall refer to the levy imposed and collected by the government on
naturally growing timber and other forest products cut, harvested or gathered from the
forestlands and from “alienable or disposable (A&D)” lands in accordance with
Republic Act No. 7161

(2) “Forest-based industries” shall refer to various industries that are dependent on raw
materials or products derived from forests such as, but not limited to, wood, rattan,
bamboo, vines, latex, resins, saps, essences, fruits, flowers or wild flora and fauna.

(aa) —__“Forest-based community” shall refer to a group of people residing inside or
immediately adjacent to a particular forestland who are largely ot partly dependent on
the forest resources found in the area for their livelihood.

(bb) “Forestlands” shall refer to lands of the public domain that have been classified
as such and all unclassified lands of the public domain.

(cc) _ “Forest officer” shall refer to any public officer who, by the nature of his
appointment or the functions of the position to which he is appointed, is delegated by
Jaw and regulations or commissioned by competent authorities to execute, implement
or enforce the provisions of this Act and other related laws and regulations.

(dd) _ “Forest plantation” shall refer to a forest stand established by planting and‘or
seeding in the process of afforestation and reforestation. The stand is either of
introduced species or of any indigenous species, or both.

(cc) _ “Forest products" shall refer to goods and services derived from the forest such
as, but not limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood,
firewood, bark, tree top, resin gum, wood oil, honey, beeswax, nipa, rattan or other
forest growth such as grass, shrub and flowering plant, the associated water, fish, game,
scenic, historical and educational.

(f)“Forest resources” shall refer to all resources whether biomass such as plants and
animals, including its by-products and derivatives, which can be raw materials to
produce value-added products or non-biomass such as soil, water, scenery, as well as
the intangible services and values present in forestlands or in other lands devoted for
forest purposes.

(gg) “Forest-resource derivatives” shall refer to substances/materials extracted, or as
exudates of the trees or part thereof such as, but not limited to, resins, gums tanning,
beeswax, rosin and alike.

(bh) “Grazing land” shall refer 10 a portion of the public domain which has been set
aside, in view of the suitability of its topography and vegetation, for the raising of
livestock.

(ii) “Indigenous cultural community (ICC)” shall refer to a group of people or homogenous
Societies as defined in the IPRA Law. Indigenous cultural community is synonymous
with indigenous people.


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(i) “Industrial Forest Management Agreement (IFMA)” shall refer toa production-sharing.
contract entered into by and between the Department and a qualified person, whether
natural or juridical, wherein the former grants to the latter the exclusive right and
responsibility to invest in, develop, manage and protect a defined area of the production
forestland, including the establishment, management and utilization of industrial forest
plantation, consistent with the principle of sustainable development, primarily to supply
the raw material requirements of wood-based processing and energy-related industries
and wherein both parties share in the benefits therefrom,

(kk) “Industrial forest plantation” or “IFP* shall refer to any tract of land, whether
Public or private, planted to timber-producing species, including rubber and durian trees
and/or non-timber species such as rattan and bamboo, primarily to supply the raw
material requirements of forest-based industries, energy-generating plants and related
industries.

(ll) “Integrated forest-based industry” shall refer to a rationalized forest resource industry
which is characterized by the presence of complementary timber processing plants such
as sawmills, plywood and vencer mills, particleboard and fiberboard plants, pulp and
paper mills as well as secondary and/or tertiary wood processing plants.

(mm) “Integrated wood-processing plant” shall refer to a combination of two (2) or
‘more wood-based processing facilities, whether mechanical or chemical‘or both, such
as sawmill, veneer and plywood mills or pulp and paper mills, including other facilities
in the manufacture of semi- or completely finished wood products.

(nn) “Joint venture agreement” shall refer to an agreement wherein the government
and a qualified person organize a joint venture company, with both parties having
equity shares, to develop and manage a portion of forestland. Aside from earnings in
the equity, the government shall be entitled to a share in the output computed at a certain
Percentage mutually agreed upon by and beneficial to both parties.

(00) —_“Kaingin” shall refer to x portion of the forestland, whether occupied or not,
which is subjected to a farming system based on shifting or slash-and-burn clearing of
forest for the planting of agricultural and agro-forest crops.

(pp) “Managed forest” shall refer to a forestland under a deliberate system of
Protection, rehabilitation, development and utilization of resources to ensure
sustainable production of desired forest products and/or services as well as the
‘conservation of soil, water, wildlife and other natural resources.

(49) “Multiple-use forestry” shall refer to the harmonized utilization, development
nd management of forestlands for the production of two (2) or more products, goods
and/or services in conformity with the principle of sustainable development.

(r)“National park” shall refer to an area of the public domain essentially natural
wilderness, scenic or historic in character which has been withdrawn from settlement,
occupancy or any form of exploitation except in conformity with an approved
‘management plan and set aside exclusively to conserve the area or preserve the scenery,
the natural and historic objects, wild animals and plants mainly for the purpose of
biodiversity conservation and/or human enjoyment.


(ss)“Natural forest” shall refer to a forest composed of naturally growing indigenous trees,
not planted by man, whose structure, composition and dynamics have been largely the
result of natural succession processes.

(tt) “Nongovernment organization (NGO)” shall refer to a nonstock, nonprofit and
Voluntary organization established primarily to provide assistance or service.

(uu) “Non-timber forest products” shall refer to all biological materials and
derivatives other than timber which are extracted from forests for human use.

(vy) “Permit” shall refer to a short-term privilege or authority granted by the State to
@ person to utilize any limited forest resources or undertake a limited activity within
any forestland without any right of occupation and possession.

(ww) “Person” shall refer to a natural as well as juridical person, including local
forest-based communities or IPs organized in accordance with law or custom.

(xx) “Processing plant or mill” shall refer to any mechanical setup, machine or
combination of machines used for the conversion of logs and other forest raw materials
into semi-finished or finished products.

(vy) “Production sharing agreement” shall refer to a contract between the
government and a person, whether natural or juridical, wherein both parties exercise
the right to manage, develop and utilize forest resources within a specific area of
production forestlands and the period of time with the person providing the financing,
technology, management, personnel, marketing and other inputs necessary (0
implement the agreement, and both parties sharing the benefits under the terms and
conditions set forth in said agreement.

(zz) “Protected areas” shall refer to identified portions of land and water set aside
Pursuant to the NIPAS Act.

(aaa) “Reforestation” shall refer to the planting of trees or artificial establishment of
forest in areas that were previously forested.

(bbb) “Reservation” shall refer to a forestland that has been reserved by the President
or by law for any specific purpose.

(ccc) “Rotation” shall refer to the number of years between the initial establishment
of a plantation and the time when it is considered ready for harvesting

(ddd) “Second-growth forest" shall refer to the status or condition of a forest
subsequent to commercial logging of which there is more of less sufficient volume of
residuals of the desired species of trees for future harvest. A second-growth forest is
‘synonymous to a residual forest.

(eee) “Secretary” shall refer to the Secretary of the Department of Environment and
Natural Resources.


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(fm) “Semi-finished wood products” shall refer to wood products requiring final
stages of manufacture and/or assembly such as, but not limited to, window components,
tabletops, veneer and other similar wood products.

(ggg) “Silvicultural practices” shall refer to any scientific intervention to further
improve or enhance the growth of trees or forest as a whole for future harvest.

(hhh) “Sustainable development” means meeting the needs of the present generation
without compromising the ability of the future generations to meet their own needs,

(iii)"Sustainable forest management” shall refer to the process of managing a forest to
achieve one (1) or more clearly specified objectives of management with regard to the
production of a continuous flow of desired forest products and services without undue
reduction of its inherent values and furture productivity, and without undesirable effects
on the physical and social environment.

(ij) Tenure" shall refer to guaranteed peacefiil access to and use of specific forestland area
and the resources found in the area through an agreement, contract or grant, which
cannot be altered or abrogated without due process

(kkk) "Timber License Agreement (T1LA)" shall refer to a privilege granted by the
State to a person to utilize forest resources within a forestland with the right of
possession and occupation thereof to the exclusion of others except the govemment,
but with the corresponding obligation to develop, protect and rehabilitate the same in
accordance with the terms and conditions set forth in the said agreement

(Ill)"Trade” shall refer to the act of engaging in the exchange, purchase or sale of forest
products locally or internationally

(mmm) — "Urban forestry" shall refer to the establishment and management of forest in
urban environment for the physiological and psychological wellbeing of the people.

(nnn) “Watershed” shall refer to a land area drained by a stream or a fixed body of
water and with tributaries having a common outlet for surface runoff.

(000) “Watershed reservation” shall refer to a forestland that has been proclaimed by
the President or by law as such, primarily for water production purposes although other
compatible uses may be allowed under sustainable and multiple-use management
concepts.

(ppp) "Wildlife" shall refer to wild forms and varieties of flora and fauna in all
developmental stages.

(qa) “Wood-based industries" shall refer to various industries that use wood as the
principal raw material such as, but not limited to, sawmilling, pulp and papermaking,
and plywood and veneer manufacturing, the upstream wood-based industries, as well
as the secondary and tertiary wood processing such as, but not limited to, moldings and
furniture manufacturing.


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CHAPTER I
CLASSIFICATION OF THE PERMANENT FORESTLANDS

SEC. 4, The Permanent Forestlands. - All lands of the public domain classified as forestlands
under the Department's land classification program, including the Temaining unclassified lands
of the public domain, shall be maintained as permanent forestlands.

SEC. 5. Sub classification of the Permanent Forestlands, - The permanent forestlands shall
be sub classified into the following categories according to primary use:

(a) Protection Forestlands. - All areas within the forestlands designated or set aside as such
shall constitute the protection forestlands. All mossy and primary/old-growth forests
and natural beach; all areas one thousand (1,000) meters above sea level, areas above
fifty percent (50%) slope: areas regardless of slope which are highly erodible or too
rocky for the establishment of either production forests or limited production forests,
developed for the principal objectives or establishing vegetative cover to prevent
erosion, conserve water and nurture wildlife, freshwater, swamps and marshes; all areas
along the bank of rivers and streams; and the shores of the seas and lakes throughout
their entire length and within a zone of three (3) meters in urban areas, twenty (20)
meters in agricultural areas and forty (40) meters in forest areas, along their margins
which are subject to the easement of public use in the interest of recreation, settlements,
navigation, floatage, fishing and salvage shall also be sub classified as protection
forestlands: Provided, That reclassification shall be approved by an act of Congress;
and

(b) Production Forestlands. - All forestlands not sub classified as protection forestlands,

defined in this section, shall constitute the production forestlands to be devoted to the
production of timber and/ or non-timber forest products or the establishment of
industrial tree plantations, tree farms, communal forests, agro-forestry, grazing or as
multiple-use forests, including water-based energy areas such as, but not limited to,
hydrothermal and geothermal reservations: Provided, That they’ shall be managed,
developed and utilized in accordance with a Department-approved management plan
based on sustainable forest management principles.

CHAPTER TIT
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND THEIR
RESOURCES

SEC. 6. Jurisdiction and Control of Forestlands. - The Department shall be the primary
agency responsible for the conservation, management, development and utilization of all
forestlands and the unclassified lands of the public d i, including all the resources found
or growing in these lands. In coordination with the local government units (LGUs) and other
government agencies, the Department shall ensure that forestlands and unclassified lands of
the public domain are managed, conserved, developed, utilized and protected consistent with
the policies and strategies promulgated in this Act. The utilization and development of
forestlands and unclassified lands of the public domain, including their natural resources, shall
be undertaken in accordance with Department-approved management plans: Provided, that the
management plan for protected areas shall be prepared in accordance with the provisions of the
NIPAS Act



Records pertaining to the specific limits of forestlands shall be made available to the public
lupon request. Moreover, the Department shall furnish all provincial, municipal and city
government's copies of the maps of permanent forestlands located within their respective
territorial jurisdictions

SEC. 7. Forestlands Managed by Local Government Units (LGUs). - Pursuant to the
pertinent provisions of Republic Act. No, 7160 or the Local Goverment Code, LGUs shall
share the responsibility in the sustainable management and utilization of forest resources within
their territorial jurisdiction, including those assigned by law to other government agencies,
Subject to vested rights, LGUs and the Department, in consultation with other government
agencies, local communities, non-government organizations, academic and research
institutions and other sectors, shall jointly undertake the preparation of forestland use and
watershed management plans, particularly the identification of multiple-use areas and
production forestlands within the territorial jurisdiction of each LGU which shall be made an
integral component of the latter's Comprehensive Land Use Plan (CLUP). The LGUs shall be
consulted on all forestry projects to be implemented in their territorial jurisdiction and shall
have equitable share of incomes derived there from. For this purpose, the Department, the
Department of the Interior and Local Government (DILG), the leagues of provinces, cities,
‘municipalities and barangays shall formulate a joint strategy and program to implement this
provision within one (1) year from the passage of this Act.

SEC. 8, Forestlands under Other Government Agencies. ~ Forestlands and/or portions
thereof which have been assigned by Iaw to the administration and management of other
government agencies for a specific purpose, including those devolved to the LGUs prior to the
Passage of this Act, shall be sub classified cither as protection or production forestlands and
shall remain under the administration and management of these government agencies which
shall be responsible for their conservation, protection, rehabilitation and sub classification into
forestland, and the specific purpose for which the entire area has been assigned or reserved
unless said assignment or reservation is consistent with the use of such area as protection
forestland. The Secretary or a duly authorized representative shall exercise oversight functions
over these forestlands. Moreover, these forestlands shall be administered in accordance with a
forest management plan, which shall be prepared by the government agency or the concemned
LGU in coordination with the Department and local communities and organizations within one
(1) year from the effectivity of this Act: Provided, That the Department and the LGU or the
goverment agency concerned shall periodically review, monitor and evaluate the
implementation of the said management plan: Provided, further, That the harvesting of forest
resources and the building of roads and other infrastructure shall be undertaken only with the
prior approval of the Secretary and after compliance with EIS and ECC requirements:
Provided, finally, That the Secretary shall recommend to Congress or the President of the
Philippines the reversion to the Department of the jurisdiction and control over forestlands that
aire no longer needed nor used for the purpose by which they have been constituted or reserved
or in case the agency or the LGU concemed fails to rehabilitate, protect and conserve the
forestland and its resources in accordance with the approved management plan. The
Department shall determine the use of the reverted forestlands.

SEC. 9. Forest Resources within Alienable and Disposable Lands. ~ All forest resources,
including trees planted or raised within alienable and disposable lands, belong to the owner of
the land who shall have the right to harvest, transport, sell, contract, convey, or dispose of the
same without the necessity of any clearance from the Department. The Department shall
encourage and provide incentives to landowners of alienable and disposable lands to develop,


‘maintain and manage forests on their lands or to develop and maintain a tree plantation on such
lands. Landowners who register their lands for forestry purposes shall be assisted by the
Department in the preparation of a management plan and shall be entitled to appropriate
incentives provided under Section 24

SEC. 10. Forest Resources within Forestlands. - All forest resources, including non-timber
forest products, its by-products and its derivatives, whether naturally growing, planted or raised
which have been taken of or have been applied with some silvicultural practices, within
forestlands including those forest resources within the areas covered by a Certificate of
Ancestral Domain Title (CADT) or a Certificate of Ancestral Land Claim (CALC), shall be
issued with a permit, agreement or clearance that are deemed necessary and appropriate by the
Department, as recommended by the Forest Management Bureau. The transport of these forest
resources from forestlands, including those from the areas of the ICs ot IPs covered by a
CADT or a CALC, shall be covered by a separate permit, agreement or clearance dully issued
by the Department.

Any declaration of forest resources as endangered, threatened, vulnerable and other restriction
shall be done in coordination, consultation and clearance from the Forest Management Bureau,

SEC. 11. Forest Resources within Ancestral Domains. - The recognition, ownership and
‘management of ancestral lands and domains shall be governed by the provisions of the IPRA,
but any project of a holder of a CADT or any such similar instrument to develop or use
forestlands o forest resources that would result in severe soil erosion or environmental
degradation shall be subject to the provisions of Presidential Decree No. 1151 or the Philippine
Environmental Policy; Presidential Decree No. 1586, establishing an Environmental Impact
‘Statement System; and this Act. The National Commission on Indigenous Peoples (NCIP) shall
Coordinate and consult the Department in providing assistance to the IPs in the sustainable
management and development of forest resources within ancestral lands and domains. For this
Purpose, a multi-sectoral task force shall be created, to be composed of representatives from
the Department, the NCIP, the Department of Agrarian Reform (DAR) and the concemed LGU
to evaluate and validate the authenticity of all CALT /CALC claims and applications of the IPs
rior to the conduct of all survey activities and the issuance of corresponding titles.

CHAPTER IV
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT

SEC. 12. Sustainable Forest Management Planning, - Subject to vested or prior rights, the
Department, in consultation and coordination with LGUs, other government agencies, local
communities, nongovernment organizations, individual and corporate entities, private sectors,
academic and research institutions and other concerned sectors shall, within one (1) year from
the effectivity of this Act, develop and adopt a sustainable forest management strategy for each
well-defined watershed or other appropriate forest management unit based on criteria,
indicators and standards for sustainable forest management which, at their minimum, address
the following requirements:

(a) Rational allocation of forestland uses and promotion of land-use practices that increase
productivity and conserve soil, water and other forestland resources;

(b) Protection of existing forest resources and conservation of biodiversity;


(c) Rehabilitation or development of denuded areas to expand the forest resource base and
promote food production activities;

(a) Enhancement of the socioeconomic well-being of local communities including IPs who
are largely dependent on the forest for their livelihood;

(e) Promotion of closer coordination between and among the Department, LGUs, other
national agencies, nongovernment organizations, local communities, the Private sector,
academic and research institutions, and other entities in the sustainable management of
forestlands;

(A) Adoption of community-based forest management as a principal strategy in the
management of forestlands and resources; and

(2) Integration of forest management and land-use plans at the barangay or community
level to the CLUPs of cities and municipalities, including the adoption of effective
impact monitoring system of forest management programs.

The Department shall adopt a comprehensive forestry master plan that shall define the
development of the combination of outlooks for the different forestry land uses, its
productivity, demand, supply, human resources policy and institutional changes.

SEC. 13, Watershed and Ecosystems Management Approach. - The Watershed and
ecosystems planning framework in environment and natural resources management shall be
adopted. The strategy for improved watershed resources management shall be demand-driven,
community-based and multiple- and sustainable-use, considering national priorities and
concems of local stakeholders. Watershed management programs shall be guided by
ecological, sociocultural, economic and institutional sustainability Principles, A national
watershed information system shall be developed to guide policy formulation, program
development and implementation of watershed management initiatives,

A system of management prioritization of watersheds shall be pursued considering the
following:

(a) Water supply for domestic, irrigation, power, industrial and commercial use;

(b) Contribution to the economy;

(©) Biodiversity and environmental enhancement;

(4) Cultural and historical value; and

(e) Effect on downstream areas.
SEC. 14. Forestry Information System. - The Department shall establish a forestry
information system, which shall consist of comprehensive up-to-date information on the
Physical, social, economic, biological and environmental components of the country's
forestlands and forest resources. It shall include a resource monitoring system to enable the

Department and its field offices to track the utilization, movement or transfer of forest-based
goods and services from the source to their end-users. The Department shall conduct and/or


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update forest resource inventory at least once every five (5) years to ensure effective
management,

SEC. 15, National Forest Monitoring, Assessment, and Reporting — The Department shall
establish a National Forest Monitoring, Assessment, and Reporting System to collect, generate,
‘manage, maintain, and update data and information pertaining to physical, social, economic,
biological, environmental components of forests and forestlands using appropriate technology,
and ground-based validation system as basis for assessing progress towards sustainable forest
management.

SEC. 16. Forest Certification System — A National Forest Certification system shall be
established which will outline the policy, rules, procedures, and management for ‘implementing
forest management certification and chain-of-custody certification. The Department shall
develop pertinent guidelines, in coordination with all stakeholders, for the implementation of
this provision subsequent to the effectivity of this Act.

SEC. 17. Environmental Impact Assessment, Accounting and Valuation. - All new critical
projects to be implemented in forestlands such as harvesting, grazing and other special uses,
‘mineral prospecting and exploration, road, infrastructure and mill construction shall be subject
to the country’s EIA system. The Department shall design and implement a system of
‘monitoring and assessment, using the criteria and indicators as framework, and shall formulate
appropriate standards as basis for assessing progress towards sustainable forest management.

‘The Department shall formulate an appropriate natural resource accounting and valuation
system for various forestry initiatives and shall provide these communities with appropriate
long-term security of tenure, technical, managerial and financial assistance, training and other
assistance, as the case may be, to empower them to manage and benefit from the forestland
Tesources on a sustainable basis.
SEC. 18. Qualified Participants. - Organized forest communities shall be given Priority to
Participate in the CBFM program. Indigenous peoples shall also be encouraged to actively
Participate in the implementation of CBFM activities in recognition of their rights to their
ancestral domains and lands.
Organizations eligible to participate in CBFM shall have the following qualifications:
(a) Members shall be Filipino citizens; and
(b) Members shall be any of the following:
(1) Traditionally utilizing the resource for their livelihood;
(2) Actually residing within the area to be awarded; or

(3) Residing adjacent and actually tilling and developing the area to be awarded.


CHAPTER VIE
REFORESTATION AND AFFORESTATION PROGRAM

SEC. 19, Reforestation/Rehabilitation of Protection Forestlands. — The reforestation and
rehabilitation of all critical watershed, denuded forestlands and degraded forests within
protection forestland not otherwise covered by the CBFM program shall be given top priority
and shall be vigorously pursued by the Department, consistent with the NIPAS Act and the
strategies and management plans therefore. The use of endemic species in the restoration
Program for protection forestlands shall be given primary consideration to enhance the
biological diversity of the area.

The Department, in coordination with LGUs, other government agencies, NGOs, local
residents and communities, and other sectors concerned shall identify and prioritize forestlands
to be reforested. An accelerated reforestation program in such identified priority protection
forestlands shall be undertaken to raise the forest cover to at least fifty percent (50%) within
five (5) years and to at least cighty percent (80%) within ten (10) years from the effectivity of
this Act. The Department shall allot finds to effectively accomplish reforestation either by
itself or through contract. The Department or other agencies responsible for reforestation shall
give priority to local communities in the granting of technical and financial assistance for
reforestation activities.

‘SEC. 20, Forest Plantation Development in Production Forestlands, — In accordance with
Section 40, the State, through the Department, may enter into joint venture, co-production or
production sharing agreement with qualified forest community organizations, LGUs,
government-owned or —controlled corporations, private companies, individuals and other
interested parties concerned in the development of forest plantations in production forestlands:
Provided, That any portion of the production forestland identified by the Department as needed
for protection and rehabilitation purposes shall not be converted into forest plantations.

SEC. 21. Reforestation in Forestlands under the Jurisdiction of Other Government
Agencies. - Government agencies and institutions having management control over forestlands
Pursuant to a law or grant shall be responsible for the reforestation of denuded and degraded
portions of such forestlands. The reforestation program of these agencies shall aim to increase
the vegetation of the degraded areas, to be identified jointly by the Department and the agency
concemed, by fifty percent ($0%) within the first five (5) years and at least eighty percent
(80%) within ten (10) years from the effectivity of this Act. The concemed agency in
coordination with the Department shall prepare the reforestation plan and determine the ratio
of forested areas at any given time. Failure to reforest denuded and/ or degraded forestland
identified in the reforestation plan within the period prescribed shall be sufficient ground to
Fequest for reversion of the said forestlands to the jurisdiction and control of the Department:
Provided, however, That in areas where CBFMS shall be implemented or where there are
existing facilities for basic services such as water and power as allowed by the Department
Pursuant to Section 40, the completion of the reforestation program shall be subject to the
‘conditions provided in the tenurial document to be awarded by the Department ahd the agency
concerned to the participating local community or individual or in the Forest Management
Agreement of contractors operating such facilities for basic services, as approved by the
Department.


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SEC. 22, Reforestation and Afforestation in Alienable and Disposable Lands or Private
Lands, - Reforestation and afforestation or the establishment of tree firms or forest plantations
inalienable and disposable lands or private lands shall be encouraged, The private landowner(s)
shall also be entitled to the incentives provided for under Section 24, particularly subsections
(a), (b), (€), (@) and (¢): Provided, that such private forest plantations are duty registered with
the Department.

SEC. 23. Tax Incentives. - The following tax incentives shall be granted to qualified persons
engaged in forest plantation activities:

(a) Expenses incurred in complying with the requirements of this Act shall be allowed as
deductible expenses for income tax purposes subject to the provisions of the National
Intemal Revenue Code (NIRC) of 1997, as amended: Provided, ‘That the deduction
shall only apply to the taxable period when the expenses were incurred;

(b) Incentives granted to registered domestic enterprise under the Investments Priorities
Plan (IPP); and

(©) Exemption from the payment of forest charges imposed under the provisions of this
Act.

To encourage qualified persons to engage in forest plantation activities, the following
incentives shall be granted in addition to those already provided by existing laws:

(1) The agreement holder shall not be subject to any obligation, prescribed in or arising out
of the provisions of the National Internal Revenue Code, on withholding tax at source
‘upon interest paid on loans incurred for the development and operation of forest
plantation;

(2) Amounts expended by the agreement holder in the development and operation of @
forest plantation prior to the commercial harvest shall be regarded as ordinary and
necessary expenses of as capital expenditure;

(3) The Board of Investments shall classify forest plantations as pioneer and preferred areas
of investment under its annual priority plan, subject to pertinent rules and regulations,

(4) The agreement holder shall be given priority to access credit assistance being granted
by government-owned, -controlled and/or -supported financial institutions;

(5) Upon the premature termination of the agreement at no fault of the holder, all
depreciable permanent and semi-permanent improvements such as roads, buildings and
‘nurseries, including the planted and standing trees and other forest crops introduced and
to be retained in the area, shall be properly evaluated and the holder shall be entitled to
« fair compensation thereof, the amount of which shall be mutually agreed upon by both
the Department and the agreement holder and, in case of disagreement between them,
by arbitration through mutually acceptable and impartial third party adjudicator;

(6) Exemption from Forest Charges and Expanded Value-Added Tax;

(7) Exemption of forest plantation from payment of real property;


(8) No termination of contract or agreement except for cause or for reason of public interest
and only after due process; and

(9) The agreement holder has the right to transfer, contract, sell or ‘convey his rights to any
qualified person following the guidelines to be issued by the Secretary.

The Secretary may provide or recommend to the President or to Congress other incentives in
addition to those granted in this Act and in existing laws in order to promote reforestation and
the establishment of forest plantations.

SEC. 24. Voluntary Offer to Reforest. - Private landowners, whether natural or juridical
Persons, may participate in reforestation and forest plantation development or similar programs
of the Department, with the landowner contributing his land and the Department providing
funds in accordance with Section 55 to reforest the area on a co-production agreement:
Provided, That the property shall be exclusively devoted to the planting of forest species for at
east one (1) rotation, which undertaking shall be annotated at the back of the title of the
property.

CHAPTER VII
URBAN FORESTRY /COMMUNAL FOREST

SEC. 25. Establishment of City or Municipal Parks and/or Communal Forest. - Every city
or municipality shall establish a city or municipal park or communal forest and shall include in
its annual budget the necessary funds for its establishment and maintenance. Upon request by
4 city or municipality concemed, the Department shall set aside an appropriate area of the
Public forestlands as city or Municipal Park and/or communal forest and shall provide technical
assistance to the local goverment concerned in the development of the park or communal
forest.

SEC. 26, Establishment of Tree Parks in Subdivision and Tree Planting on Roadsides, -
Every subdivision project to be developed after the passage of this Act shall include the
establishment of a tree park of not less than fifty percent (50%) of the required total open spaces
as provided in Section 2 of Presidential Decree No. 953, requiring the planting of trees in
certain places. The guidelines for the establishment of tree parks within a subdivision shall be
prepared jointly by the subdivision owner concemed, the Housing and Land Use Regulatory
Board (HLURB) and the Department. The subdivision owner shall provide the funds for this
Purpose. For every major public road or irrigation construction project, the Department of
Public Works and Highways (DPWH) shall include the planting and maintenance of trees along
the road/highway or irrigation canals as landscaped rest areas every twenty-five (25) kilometers
thereof and shall provide adequate funds for this purpose.

Each city or municipality shall also allocate adequate funds for the planting, care and
maintenance of trees or perennial shrubs in "greenbelts" or "green spaces” such as road/street
sides, center islands, etc,


CHAPTER VIE
FOREST PROTECTION

SEC. 27. Commercial Logging Ban. - There shall be a permanent ban on commercial logging
activities in all protection forestlands defined, categorized and sub classified in Section 5(a),
No license, permit or agreement to cut any timber within a protection forestland shall be issued

Portions of the production forestlands identified by the Department for protection purposes
shall be excluded from any form of logging operations and the holder of the agreement or
license shall establish a buffer zone and delineate their boundaries with the production
forestlands, marking the same with concrete monuments, road or infrastructure, or any other
Visible, permanent and practicable signs

To ensure the conservation and sustainable use of forest resources, holders of timber licenses,
leases and permits shall submit to the Department an Integrated Operations Plan (IOP)
Containing strict environmental guidelines such as ECC compliance. Alt forest development
Activities such as logging, reforestation, timber stand improvement, forest protection and
delivery of community service within an area covered by timber concessions shall be
consolidated under the 1OP, which shall be prepared by or under the supervision of an
accredited private registered forester whose signature and dry seal shall appear in the plan and
the supporting documents submitted for the purpose.

Upon its expiration or termination for cause, no extension shall be made on any TLA and the
area covered by the agreement shall be converted into any mode pursuant to Section 40,
including degraded areas that may be subject of a reforestation or tree plantation project

SEC. 28. Assistance of Law Enforcement Agencies. - The Department may call upon law
enforcement agencies and instrumentalities of the government such as the Philippine National
Police (PNP), the Armed Forces of the Philippines (AFP) and the National Bureau of
Investigation (NBI) for the enforcement of the logging ban in all Protection forestlands and for
the protection and conservation of forests.

The Secretary of the Department of Justice shall designate in every city and province a special
Prosecutor who shall immediately me charges against forest violators to enstire their speedy
prosecution,

‘SEC. 29. Multi-sectoral Forest Protection Council. - There shall be created a multi-sectoral
forest protection council in every province, city and municipality which shall be responsible
for law enforcement, prevention of forest fires, integrated pest management and protection
against forest invasive species. The council shall be composed of representatives from, but not
limited to, the Department, concerned LGU, NGOs, people's organizations, church and local
academic institutions.

SEC, 30. Role of LGUs and Local Residents, - It shall be incumbent upon LGUs concemed
to render assistance in protecting and conserving forestlands within their respective territorial
Jurisdiction. Qualified local residents may be deputized by the Department to assist in the drive
against illegal logging, kaingin-making and forestland occupation. These deputized residents
shall likewise be authorized to arrest forest violators within their communities, subject to
existing laws and regulations on arrest and detention.


SEC. 31. Prevention of Forest Fires and Control of Forest Pests and Diseases. - In
collaboration with concemed LGUs, the Department shall formulate and implement a forest
fire management and control program. The Department shall likewise formulate and implement
4 national integrated forest pest and disease management program including quarantine
procedures for imported seeds, forest plants and plant products as well as wildlife to prevent or
control forest or wildlife pests and diseases.

SEC, 32, Information and Rewards System. - The Department shall establish an information
and rewards system as part of the community's participation in the protection of forest
resources,

CHAPTER IX
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION

SEC, 33. Research and Technology Development Transfer, - Research and technology
development transfer shall be strengthened to support sustainable management of forest
resources. The Department, the Department of Science and Technology (DOST), the
Commission on Higher Education (CHED) and the colleges of forestry of state universities
shall, within one (1) year from the passage of this Act, prepare a comprehensive national
forestry and environmental research and technology development and transfer program in
furtherance of sustainable forest management which shall be implemented, monitored und
reviewed in accordance with existing research management systems. Adequate and ststainable
funds to implement a research and technology development and transfer program shall be
provided by each of the aforementioned agencies and institutions under the General
Appropriations Act

SEC. 34. Public Information, Education and Advocacy Campaign. — With the support from
LGUs, NGOs, media and other organizations, the Department, the Philippine Information
Agency (PIA), the Department of Education (DepEd), the CHED, State-owned and private
luniversities and colleges shall formulate and implement a nationwide program for sustained
public information and advocacy campaign for forest and natural resources conservation and
sustainable forest development and management, The DepEd shall include subjects on forest
and natural resources in the curricula for elementary and high school education. The CHED
shall likewise include ecology and environment courses in the general education curricula. The
Department shall undertake systematic campaign to promote community ecological
awareness, including the preparation of informational and educational materials therefore.

SEC. 35, Formal Forestry Education, -The CHED, in collaboration with the Department, the
Board of Examiners for Foresters of the Professional Regulation Commission (PRC) and the
duly accredited national professional foresters organization shall actively pursue the
rationalization of formal forestry education and the establishment of centers of excellence in
forestry and environmental education to ensure high quality manpower output to meet the needs
of the forestry sector.

SEC, 36. Continuing Education on Forestry. - A non-formal program of continuing
education shall be established to maintain the growth of the forestry profession. The PRC Board
of Examiners for Foresters and the Civil Service Commission (CSC) shall provide the
guidelines for a program in continuing education in forestry. In cooperation with academic
institutions, the Department shall develop the infrastructures to institutionalize non-formal
continuing education for the forestry sector


SEC, 37. Training Centers. - In coordination with the TESDA, the DepEd, the CHED and
state universities and colleges (SUCs), the Department shall establish and institutionalize a
network of training centers in strategic parts of the country to provide regular and up-to-date
raining on the various aspects of sustainable forest management, development and utilization
to forest officers, LGUs, NGOs, local communities and IPs. Furthermore, the Department shall
ensure that personnel appointed to critical and sensitive positions undergo training to prepare
them to discharge their duties and responsibilities professionally, efficiently and effectively.

SEC, 38. Forestry Development Center. -The Forestry Development Center (FDC) based in
the College of Forestry and Natural Resources, University of the Philippines at Los Baiios shall
continue to serve as the primary policy research and development center for forestry and natural
Fesources management. The FDC shall perform its functions in close coordination with the
Department and other policy research institutions in the country. It shall assist the Department
in the formulation, review and evaluation of proposed and existing policies on forestry and
hnatural resources management. To enable the Center to carry out its mandated functions, the
Center shall have a share of the Sustainable Forestry Development Fund pursuant to Section
35 in the conduct of its mandated functions of policy research.

CHAPTER X
DISPOSITION AND UTILIZATION OF FOREST RESOURCES

SEC. 39. Modes of Forest Management Agreement. - The development, utilization and
management of forestlands and/or forest resources shall be undertaken under the full control
and supervision of the State through the Department. The State may directly undertake such
Activities or it may enter into co-production, joint venture or production sharing agreement with
qualified Filipino citizens or corporations or associations, subject to relevant laws, rules and
regulations: Provided, That interested local communities and IPs through their organized and
duly recognized associations shall be given priority in the grant of appropriate tenurial
instruments implementing the said agreements. Such tenurial instruments and/or agreements
shall have a duration of twenty-five (25) years, renewable for another twenty-five (25) years,
under such terms and conditions as may be provided by the Secretary: Provided, further, That
such tenurial instruments and/or agreements may not be terminated except for cause or if public
interest so requires.

Current valid and subsisting licenses, contracts or agreements granted by the government for
the development, management and utilization of forest resources shall be allowed to continue
under the same terms and conditions until their expiry, or prior to their ‘expiry shall be allowed
to be converted into any mode authorized in this Act under the guidelines promulgated by the
Secretary; Provided, That no such conversion shall be allowed in protection forestlands as
defined in Section 5, and on sub classification of forestlands.

‘The Department is hereby authorized to formulate rules and regulations covering the relevant
terms and conditions thereof including the determination and collection of the government
share, subject to the approval of Congress.

For watersheds and other areas where existing facilities for basic services such as water and
power are located, the Department may enter into a forest management agreement with the
Service contractor in the area. Such agreement shall have a duration of twenty-five (25) years,
renewable for another twenty-five (25) years, under such terms and conditions agreed upon by


both parties: Provided, That such agreement may not be terminated except for cause or if public
interest so requires or upon mutual agreement by the parties.

SEC. 40, Transfer of Rights Arising Out of Agreements, Contracts or Similar
Instruments, - The transfer of rights arising out of any forest management agreement, contract
or similar instrument with the government may be authorized by the Department: Provided,
‘That the agreement, contract or similar instrument has been in existence and active for at least
three (3) consecutive years from its issuance: Provided, further, That the transferor has
faithfully complied with the terms and conditions of the said agreement, contract or similar
instrument, the transferee has all the qualifications and none of the disqualifications to hold the
same; and the transferee shall assume the obligations of the transferor.

Failure to comply with these conditions shall be sufficient cause for the cancellation of the
agreement, contract or similar instrument.

‘SEC. 41. Non-Timber Forest Products, - Rattan, bamboos, vines, herbs, exudates and other
non-wood forest products are integral parts of the forest ecosystem. The establishment of
Plantations of non-timber producing species shall be encouraged and supported. The
development, management and utilization of non-timber forest products shall be allowed in
accordance with the guidelines to be promulgated by the Department. However, in granting
permits to harvest or utilize non-timber forest products in their natural or original state from
production forestlands, priority shall be given to forest resident families, local communities
and IPs living nearest the subject forestlands.

SEC, 42. Silvicultural and Harvesting System. - The Department shall formulate the
appropriate silvicultural and harvesting system and all measures shall be taken to achieve an
approximate balance between growth and harvest or use of forest products in production
forestland shall be promoted

SEC. 43. Grazing. - The Department shall identify and delimit areas in the production
forestland suitable for grazing purposes: Provided, That no forestland fifty percent (50%) in
slope or over may be utilized for grazing purposes: Provided, further, That existing pasture
lease agreements or forestland grazing lease agreements shall be allowed to continue under the
same terms and conditions until their expiry: Provided, finally, That abandoned or idle, expired
or cancelled grazing or pasture lands shail be subject to a land use capability assessment to
determine their best use or combination of uses. No new grazing or pasture permit, lease or
contract shall be issued, nor existing ones allowed to continue unless covered by existing rules
and regulations governing the Philippine EIS System.

SEC, 44. Mining and Power Generation Operations in Forestlands. — Forest resources
inside mineral lands are under the Department's jurisdiction, and their management and
Utilization are subject to the provisions of this Act. Power generation and small-scale mining
operations in forestlands may be allowed subject to existing rules and regulations governing
the Philippine EIS System.

SEC, 45, Roads and Other Infrastructure. - Roads and other infrastructure including the
development of mineral reservations and energy resources inside forestlands shall be
constructed with the least impairment to the resource values found in such forestlands.
Government agencies and their contractors undertaking the construction of roads, bridges,
communication and other infrastructure facilities and installations inside forestlands shall seek


prior authority from the Department and shall comply with the provisions of this Act and
existing rules and regulations governing the Philippine EIS System.

CHAPTER XI
FOREST-BASED INDUSTRIES

SEC. 46, Establishment and Operations of Forest-based Industries, - To meet the demands
for forest-based goods and services of a growing population, the State, through the Department,
shall promote and rationalize the establishment, operations and development of forest-based
industries.

SEC. 47. Incentives for Forest-based Industries, - To enable forest-based industries to be
more efficient, competitive and economically viable, the following incentives are hereby
granted in addition to those already provided by existing laws:

(a) All processing plants or mills shall be assured of their supply of raw materials,
preferably but not exclusively from local sources;

(b) All processing plants or mills shall be granted operating permits for five (5)
years, renewable every five (5) years for the same period: Provided, That
permits for processing plants owned or operated by holders of forest
‘management agreements or contracts shall be co-terminus with said agreements
or contracts; and

(¢) The Department shall promote and strengthen the linkages among corporate,
family-based and community-based industries.

‘The Department may provide on its own, or propose to the President of the Philippines or to
Congress, other incentives to encourage the establishment and development of corporate,
family and community forest-based industries. Agreements or licenses over forest areas
granted to wood-based plants shall be converted into any mode authorized in this Act
Expansion in capacity of wood-based plants shall be encouraged and the same shall be given
Priority access to production forestlands and other areas available for development as source
of raw materials.

SEC. 48. Export and Sale of Locally Produced Wood Products. — Logs derived from natural
grown trees of whatever species cut, gathered or removed from the local natural forest and raw
or rough lumber manufactured from such logs shall not be exported except finished and semi-
finished lumber products, wood manufactures, wood panels and other finished wood products
from such logs, subject to such guidelines as the Secretary may promulgate.

No person shall sell or offer for sale any log, lumber, veneer, plywood or other manuftctured
wood products in the international or domestic market without complying with the grading
rules established or to be established by the government. Failure to adhere to the established
grading rules and standards or any act of falsification on the volume of logs, lumber, veneer,
plywood or other wood products sold in the international or domestic market shall be sufficient
cause for the cancellation of export license, wood processing permit or other license or permit
authorizing the manufacture or sale of such products.

SEC. 49, Importation and Sale of Logs and Other Forest and Wood Products. - Logs,
lumber and other forest and wood-based products may be imported to the country subject 10


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the registration requirements of the Department, payment of tariff and duties imposed under
the Tariff and Customs Code, and quarantine regulations. Any product manufactured or re-
manufactured out of the imported forest and wood materials may be sold in the domestic or
international market subject to compliance with the grading rules and standards.

CHAPTER XI
FOREST CHARGES, FEES AND GOVERNMENT SHARES

SEC. 50, Fees and Government Shares for the Utilization, Exploitation, Occupation,
Possession and Activities within Forestlands. — The Department shall prescribe appropriate
fees and government shares for the different kinds of utilization, exploitation, occupation,
Possession or activities within forestlands: Provided, That payment of or collection of such fees
and government shares shall be waived for parties or industries mandated by law to manage,
conserve, develop and protect forestlands and forest resources, except administrative fees for
the filing and processing of applications for the issuance and renewal of licenses, permits and.
agreements: Provided, further, That watershed administrators and/or service contractors that
have forest management agreements with the Department as provided for under Section 40 of
this Act shall also be entitled to the waiver of fees, except administrative fees.

The Department shall recommend to Congress appropriate and equitable fees for the use of
water and forest for power generation, irrigation, domestic and industrial, and for carbon
Sequestration and biodiversity benefits, respectively, by parties/industries concerned.

SEC. 51, Forest Charges. - There shall be collected a forest charge per cubic meter based on
the actual freight on board (FOB) market price based on species and diameter class by the
Department on the following:

(a) Timber- twenty-five percent (25%);
(b) Pulpwood and matchwood- ten percent (10%);

(c) Firewood, branches and other recoverable wood wastes of timber such as timber
ends, tops and stumps when used as raw materials for the manufacture of
finished products- ten percent (10%); and

(a) Non-timber forest products- ten percent (10%).

These forest charges shall be applied to naturally growing timber and non-timber forest
products gathered within forestlands, alienable and disposable lands, and private lands. For the
above purpose, the measurement and the actual FOB market price of forest products shall be
justly determined by the Department, which shall likewise provide for the time, manner and
place of payment of such charges.

SEC. 52. Fees for Administrative Services Rendered by the Department, - Fees shall be
collected for various services rendered by personnel of the Department in connection with their
duties and responsibilities as may be requested by interested parties including, but not limited
to, surveying, mapping and other similar service activities: Provided, That administrative fees
shall be waived for services rendered to local communities or IPs in the preparation of their
management plans.


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CHAPTER XII
APPROPRIATIONS AND FINANCIAL SUPPORT

SEC. 53. Appropriations. -The Secretary of the Department of Environment and Natural
Resources (DENR) shall include in the Department's program and issue such rules and
regulations for the implementation of the provisions of this Act, the initial funding of which
shall be charged against the current year’s appropriations of the Department and thereafter
included in the annual General Appropriations Act. For LGUs, the funding requirements shall
be taken from their Internal Revenue Allotment and other LGU income.

SEC. 54. Sustainable Forestry Development Fund - A Sustainable Forestry Development
Fund (SFDF) to be administered by the Department, through Forest Management Bureau, as a
special account in the National Treasury is hereby established to provide sustainable funds for
forest protection, reforestation and forest development and management, including the
rehabilitation and preservation of watershed areas, CBFM program, information and
educational campaigns as well as scholarship programs and policy research, At least thirty
percent (30%) of the forest charges and government share in all products removed from the
forestlands, rentals, proceeds from sales of confiscated forest products including conveyances,
fines and penalties, and administrative fees collected shall be set aside for the buildup of the
SFDF. The fund may be augmented by grants, donations, endowment from various sources,
domestic or foreign, for purposes related to their functions and other innovative finding
mechanisms such as securitization of forest assets, among others.

Disbursements from the fund shall be subject to the usual accounting and budgeting rules and
regulations: Provided, that no amount shall be disbursed to cover the operating expenses of the
Department and other concerned agencies.

A must fund committee composed of the Secretary as Chair and the Secretary of the Department
of Budget and Management, the DILG Secretery and the National Treasurer or their
Tepresentatives shall sit as members and manage the SFDF, with the Forest Management
Bureau as secretariat

CHAPTER XIV.
CRIMINAL OFFENSES AND PENALTIES.

SEC. 55, Harvesting, Gathering and/or Collecting Timber or Other Forest Products
without Authority. - Any person who shall harvest, cut, gather, collect or remove timber or
other forest products from any forestland, or naturally grown timber inside alienable and
disposable public land except as provided in Section 9, without authority from the Secretary or
found to possess the same without pertinent required legal documents shall be punished by
imprisonment ranging from prision mayor minimum period to reclusion temporal minimum
period and/or a fine equivalent to ten (10) times the value of the said forest product. Provided,
‘That in the case of partnerships, associations or corporations, the president, managing partner
and general manager shall be held liable and, if such officer is an alien, he shall, in addition to
the penalty, be deported without further proceedings on the part of the Bureau of Immigration.
Offenders who are public officials shall be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position


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Alll timber or any forest products cut, gathered, collected, removed or possessed and all the
conveyances, machinery, equipment, implements, work animals and tools used in connection
with this violation shall be seized and confiscated in favor of the government

SEC. 56. IMegal Cutting as an Act of Economic Sabotage. - Any of the acts enumerated in
the preceding section committed by an armed group or by any group, through organized and
systematic manner, for commercial purposes, shall be considered an act of economic sabotage
punishable by reclusion perpetua. The commission of any of the prohibited acts by two (2) or
more individuals with or without the aid ofany mechanical device shall constitute a prima facie
evidence that the act is organized and systematic.

Any licensed timber concessionaire who shall buy logs from unlicensed loggers or loggers
operating without permits shall be considered in violation of this Act and, upon conviction,
shall also be punished with recfusion perpetua,

‘SEC. 57. Use of IMegally Cut Timber in Government Infrastructure Projects. - Contractors
of government infrastructure projects are hereby required to obtain certification from the
Department that the logs or lumber to be used were obtained from legitimate sources. The use
of illegally cut naturally grown timber in government infrastructure projects shall be sufficient
cause for the imposition of penalties provided in Section 56, on harvesti iz of forest products
without authority, and Section 57, on illegal cutting as an act of economic sabotage, including
the withholding of the payment to the contractor.

SEC, 58. Damage to Residual Trees. - To ensure the sustainability of the natural forests,
adequate number of residual trees shall be marked, to be retained as part of the managed forests
and as the future timber crop, before any harvesting operation shall commence. Any marked
residual tree that is damaged during such operation is subject to a fine equivalent to four (4)
times the regular forest charges.

SEC. 59, Grazing Livestock on Forestlands without a Permit. - Any person found to have
caused the grazing of livestock in forestlands and grazing lands without an authority under a
lease or permit to graze, upon conviction, shall be penalized with imprisonment of not less than
two (2) years nor more than four (4) years and a fine equivalent to ten (10) times the regular
shares due in addition to confiscation of the livestock and all improvements introduced in the
area in favor of the government: Provided, That in case the offender is a corporation,
Partnership oF association, the officer or director thereof who directly caused or ordered such
Shall be liable. In case the offender is a public officer or employee, he shall, in addition to the
above penalties, be deemed automatically dismissed from office and permanently disqualified
from holding any elective or appointive position in the government service

SEC. 60. Unlawful Occupation or Destruction of Forestlands. - Any person who, without
authority from the Secretary, enters and occupies or possesses, or engages in kaingin or slash-
and-bum farming and related activities for his private use or for others, any forestland or
grazing land, or in any manner destroys such forestland or part thereof, or causes any damage
to the timber stands and other forest products or assists, aids or abets another person to do so,
or sets a fire or negligently permits a fire to be set, or refuses lawful orders to vacate the area
when ordered to do so shall, upon conviction, be punished with penalties in the amount of not
Jess than One hundred thousand pesos (P100,000.00) nor more than Five hundred thousand
pesos (P500,000.00) and imprisonment of not jess than six (6) years and one (1) day nor more
than twelve (12) years for each offense: Provided, That in the case of an offender found guilty
of making kaingin or slash-and-bum farming, the penalty shall be imprisonment of not less


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than ten (10) years nor more than twelve (12) years and a fine equivalent to ten (10) times the
regular forest charges due on the forest products destroyed without prejudice to payment of the
full cost of rehabilitation of the occupied areas as determined by the Department: Provided,
Further, That the maximum of the penalty prescribed shall be imposed upon the offender who
repeats the same offense, and double the maximum penalty upon the offender who commits
the same offense for the third (3rd) time or more.

In all cases, the court shall further order the eviction of the offender from the area occupied and
the forfeiture to the government of all improvements introduced, including all vehicles,
domestic animals and equipment of any kind used in the commission of the offense.

fnot suitable for use by the Department, said improvements, vehicles, domestic animals and
equipment shall be sold at public auction, the proceeds from which shall accrue to the SEDF
Ifthe offender is an alien, he shall be deported after serving his sentence and payment of fines,
without any further proceedings. An offender who is a government officer or employee shall,
in addition to the above penalties, be deemed sutomatically dismissed from office and
permanently disqualified from holding any elective or appointive position in thé government
service.

SEC, 61. Mlegal Conversion of City or Municipal Parks, Communal Forests and ‘Tree
Parks in Subdivisions. - Any person found to have converted or caused the conversion of a
city or municipal park or communal forest, or tree parks within subdivisions established
pursuant to Section 26 and Section 27 of this Act, and Section 2 of Presidential Decree No.
953, requiring the planting of trees in certain places, into other uses including the construction
of permanent buildings, or in any manner destroys or causes any damage to the timber stands
and other forest products or assists, aids or abets another person to do so, or sets a fire or
negligently permits a fire to be set, upon conviction, shall be penalized by imprisonment of six
(6) years and one (1) day to twelve (12) years or a fine of not less than One hundred thousand
pesos (P100,000.00) nor more than Five hundred thousand pesos (P500,000,00), or both fine
and imprisonment, at the discretion of the court. The offender shall likewise be imposed a fine
equivalent to ten (10) times the commercial value of the forest products destroyed without
Prejudice to payment of the full cost of rehabilitation of the areas as determined by the
Department: Provided. further, That the maximum of the penalty prescribed shall be imposed
upon the offender who repeats the same offense, and double the maximum penalty upon the
offender who commits the same offense for the third time or more. The court shall further order
the forfeiture to the government of all improvements, including all vehicles, domestic animals
and equipment of any kind used in the commission of the offense. If not suitable for use by the
Department, said improvements, vehicles, domestic animals and equipment shall be sold at a
public auction, the proceeds from which shall accrue to the SDF.

An offender who is a government officer or employee, in addition to the above penalties, upon
conviction, shall be deemed automatically dismissed from office and permanently disqualified
from holding any elective or appointive position in the government service.

SEC. 62, Misdeclaration or Falsification of Reports on Forest Resource Inventory,
Sealing and Survey by a Government Official or Employee. - Any public officer ot
employee who knowingly misdeclares or falsifies reports pertaining to forest resource
inventory, scaling, survey and other similar activity which are contrary to the criteria and
standards established in the rules and regulations promulgated by the Secretary therefore, after
an appropriate administrative proceeding, shall be dismissed from the service with prejudice to


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reemployment. Upon conviction by a court of competent jurisdiction, the same public officer
or employee shall further suffer an imprisonment of not less than eight (8) years nor more than
twelve (12) years and a fine of not less than One hundred thousand pesos (P100,000.00) nor
more than Five hundred thousand pesos (P500,000,00), The inventory, survey, scale,
classification and similar reports referred in this section shall be rendered null and void.

SEC. 63. Unlawful Operation of Wood Processing Plants and Downstream Forest-based
Industries. - Any person operating a wood processing plant or downstream forest-based
industry without authority from the Secretary shall be punished by, upon conviction by a court
of competent jurisdiction, imprisonment of not less than eight (8) years nor more than twelve
(12) years and a fine of not less than Five hundred thousand pesos (PS00, 000,00) and
confiscation of the wood processing plant and complementary equipment in favor of the
government. The Department shall promulgate the necessary guidelines, subject to the
provision of this Act that will define the terms and conditions, including the responsibility for
4 person who will operate and operating a wood processing plant and/or other downstream
forest-based industries.

SEC. 64, Prohibition on the Issuance of Tax Declaration on Forestlands. - Any tax
declaration issued over forestlands shall be considered null and void.

Any local government official or employee who issues a tax declaration for any purpose on
‘any part of forestlands, upon conviction, shall be penalized with imprisonment for a period of
not less than four (4) years nor more than eight (8) years and a fine of not less than One hundred
thousand pesos (P100, 000.00) nor more than Five hundred thousand pesos (P00, 000,00) and
the perpetual disqualification from holding an elective or appointive office.

SEC, 65. Unlawful Possession of Implements and Devices Used by Forest Officers. - Any
Person found possessing or using implements and devices used by forest officers shall be
penalized with imprisonment of not less than eight (8) years nor more than twelve (12) years
and a fine of not less than One hundred thousand pesos (P100, 000.00) nor more than Five
hundred thousand pesos (P500, 000,00) in addition to the confiscation of such implements and
devices and the automatic cancellation of any agreement, license, lease or permit

Any forest officer who willingly allowed unauthorized person(s) to use these implements and
devices under his/her care shall be penalized with imprisonment of not less than six (6) years
and one (1) day to not more than twelve (12) years and a fine of not less than One hundred
thousand pesos (P100, 000.00) nor more than Five hundred thousand pesos (P500, 000.00). In
addition, the convicted forest officer shall be dismissed from the service with prejudice to
Feinstatement and with perpetual disqualification from holding an elective or appointive
position.

SEC, 66, Unauthorized Introduction of Logging Tools and Equipment inside Forestlands.
-It shall be unlawful for any person or entity to possess, bring or introduce any logging tools or
equipment inside forestlands without prior authority from the Secretary o his duly authorized
representative, Any person found guilty of illegal possession of said logging tools or equipment
shall be liable to imprisonment of six (6) years and ane (1) day to twelve (12) years or a fine
of not less than One hundred thousand pesos (P100, 000.00) nor more than Five hundred
thousand pesos (P500, 000.00), or both imprisonment and fine, at the discretion of the court
and the confiscation of said logging tools and equipment in favor of the government.

‘SEC. 67. Nonpayment and Non-remittance of Forest Charges. - Any person who fails to
pay the amount due and payable as forest charges to the government shall not be allowed to


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transport, convey, sell nor use the timber or forest product. Moreover, failure to pay within
thirty (30) days upon assessment of forest charges shall be a ground for confiscation of the said
timber or forest product in favor of the government, Any person who fails or refiuses to remit
to the proper authorities said forest charges collectible pursuant to the provisions of this Act or
the National Internal Revenue Code, as amended, or who. delays, obstructs or prevents the same
or who orders, causes or effects the transfer or diversion of the funds for purposes other than
those specified in said Acts shall, upon conviction, be imprisoned for not less than six (6) years
nor more than twelve (12) years and fined from One hundred thousand pesos (P100,000,00) to
Five hundred thousand pesos (P500,000.00) in adi to the payment of the assessed forest
charges. If the offender is a corporation, partnership or association, the officers and directors
thereof shall be liable.

SEC, 68. Institution of Criminal Action by Forest Officers. - Any forest officer shall arrest
even without warrant any person who has committed or is about to commit, or is committing
in his presence any of the offenses defined in this chapter. The tools, animals, equipment and
conveyances used in committing the offense and the forest products cut, gathered, taken or
Possessed by the offender in the process of committing the offense shall also be seized and
confiscated in favor of the government. The arresting forest officer shall thereafter deliver
within six (6) hours from the time of arrest or seizure both the offender and the confiscated
forest products, conveyances, tools and equipment, or the documents pertaining to the same,
and file the proper complaint with the appropriate official designated by law to conduct
preliminary investigation and file information in court. Ifthe arrest and seizuire are made in the
forest far from authorities designated by law to conduct preliminary investigations, the delivery
to and filing of the complaint with the latter shall be done within a reasonable time sufficient
for ordinary travel from the place of arrest to the place of delivery.

The seized forest products, materials, conveyances, tools and equipment shall be immediately
disposed of in accordance with the regulations promulgated by the Secretary. The Secretary
may deputize any agency, barangay or barrio official, or any qualified person to protect the
forest and exercise the powers or authority provided for in the preceding paragraph. Reports
and complaints regarding the commission of any of the offenses defined in this chapter not
committed in the presence of any forest officer or any of the deputized officers shall
immediately be reported to the forest officer assigned in the area where the offense was
allegedly committed. Thereupon, the investigating officer shall receive the evidences
Supporting the report or complaint and submit the same with the appropriate official authorized
by law to conduct a preliminary investigation of criminal cases and file the information in court,

SEC. 69. Liability of the Custodian of Confiscated Forest Products. — Any public officer
who fails to produce the timber or forest products, including tools, conveyances, equipment
and devices in his custody pursuant to a seizure or confiscation made thereon, or who shall
appropriate, take, misappropriate, or shall permit another person to take such timber or forest
products wholly or partially, shall suffer the penalty provided for malversatian of public funds
or property under the Revised Penal Code. In addition, the said public officer shall be dismissed
from the service with prejudice to reinstatement and with perpetual disqualification from
holding any elective or appointive office.


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CHAPTER XV
ADMINISTRATIVE PROVISIONS

SEC, 70. Strengthening of the Forest Management Sector. - In order to effectively
implement the provisions of this Act, the Forest Management Bureau shall be transformed into
4 ine bureau with fictions clearly defined and enumerated under the implementing rules and
regulations of this Act. To ensure that the scientific practice of forestry in the country is
properly implemented, only registered foresters shall be appointed to the positions of director
and assistant director and regional directors of the Forest Management Bureau, as well as to all
other positions where the services of professional foresters are required in accordance with
existing laws and the relevant rules and regulations issued by the CSC and the PRC

SEC. 71. Development of Mechanisms for Private Sector Participation in Forest
Management. - The Secretary is hereby authorized to adopt appropriate mechanisms to
strengthen private sector participation in forest management, which shall include the
accreditation of a national organization of private investors including for profit, NGOs and
people's organizations. The accredited national organization shall assist the Department in the
formulation and review of relevant policies to ensure the contribution of the forestry sector to
national economy and sustainable development. It shall also assist the Department in evaluating
applications for forest management agreements; monitoring the performance of holders of
Commercial tenurial instruments; ensuring the local supply of timber and wood products;
Providing producers with access to local and intemational markets; and ensuring the
conservation and preservation of protection forestlands and protected areas under the NIPAS
Act.

Sec. 72. Authority of the Secretary on the Use of Forest Resources, — The utilization of
forest resources from natural forests found in forestlands, government-established reservations
and all other lands including ancestral domains or under the management of other goverment
agencies shall be prohibited unless covered by permits issued by the Department, in
consultation with other concemed government agencies: Provided, That in the case of ancestral
lands and domains, the terms of the agreement with the concerned ICC shall likewise govern.

SEC. 73. Administrative Authority of the Secretary or his/her Duly Authorized
Representative to Order Confiscation. - In all cases of violations of this Act or other forest
laws, rules and regulations, the Secretary or hissher duly authorized representative may order
the confiscation of forest products illegally harvested, cut, gathered, removed or or
abandoned, and all conveyances used either by land, water or air as well as all machinery,
equipment, implements and tools used in the commission of the offense and to dispose of the
same in accordance with pertinent laws, regulations or policies on the matter. Ifthe confiscated
forest products are in danger of deteriorating, the Secretary may order that the same be sold at
public auction even before the termination of the judicial proceedings, with the proceeds kept
in trust to await the outcome of the judicial proceedings. No court of the Philippines shall have
Jurisdiction to issue any Writ of Replevin, restraining order or preliminary mandatory injunction
in any case involving or growing out of any action by the Secretary or his/her duly authorized
Fepresentative in the exercise of the foregoing administrative authority.

SEC. 74. Administrative Authority of the Secretary to Impose Fines, — In all cases of
violations of this Act and other forest laws, rules and regulations where fine is the principal
penalty, the Secretary, after consultation with the forest-based industries affected, is hereby


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authorized to impose administratively the penalty consisting of the amount and the schedules
of the fine which shall be officially published in a national newspaper of general circulation.

SEC. 75. Authority of Forest Officers. - When in the performance of their official duties,
forest officers or other government officials or employees, duly authorized by the Secretary,
shall have free entry into areas covered by a contract, agreement, license, lease or permit. Forest
officers are authorized to inspect and to open closed vans ‘suspected to contain illegally
harvested, collected or transported forest products: Provided, that it is done in the Presence of
the shipper or consignee or two (2) responsible public officials in the locality. Forest officers
are authorized to administer oath, take acknowledgment in official matters connected with the
finctions of their office or take testimony in official investigations conducted under the
authority of this Act and the implementing rules and regulations issued by the Secretary
pursuant thereto,

SEC. 76, Visitorial Functions. - The Secretary or his/her duly authorized representative shall,
from time to time, investigate, inspect and examine records and other documents except bank
records related to the operation of any person granted the privilege, contract or agreement 10
utilize forest resources to determine compliance with the terms and conditions stipulated in the
grant, contract or agreement, this Act and pertinent laws, rules and regulations.

SEC, 77. Other Incentives. - Fifty percent (50%) of the value of confiscated materials shall
be used as incentives to informants and members of multi-sectoral forest protection councils,
including Department personnel. Additional incentives may be provided to personnel of the
Department, in addition to those provided under the Government Service Insurance System
(GSIS) or the Workmen's Compensation Law. They shall also be entitled to free legal
assistance should legal cases be filed against them in the performance of official duties.

SEC. 78. Protection to Witnesses in Cases Involving Violation of Forestry Laws. -
Witnesses to violations of this Act or other forestry laws and regulations, including the
immediate members of the family of said witnesses, shall be given protection, security and
benefit, subject to the provisions of Republic Act No. 6981, otherwise known as "The Witness
Protection, Security and Benefit Act" and its implementing rules and regulations.

SEC. 79, Rule-making Authority. - The Department shall promulgate the implementing rules
and regulations within one (1) year from the effectivity of this Act, in consultation with the
NCIP, the DILG, the Department of Finance, the leagues of Provinces, cities and
municipalities, and other goverment agencies,

SEC. 80, Congressional Oversight Committee on the Sustainable Forest Management
Act. - There is hereby created a Congressional Oversight Committee composed of seven (7)
Members from the Senate Committee on Environment and Natural Resources and seven (7)
Members from the House of Representatives Committee on Natural Resources. The secretariat
of the Oversight Committee shall be drawn from the existing secretariat personnel of the
committees comprising the oversight and the funding shall be taken from the appropriations of
both the House of Representatives and the Senate.

SEC. 81. Transitory Provision. - Upon the approval of this Act, the Department shall evaluate
the conditions of all forestlands covered by existing tenurial instruments, memoranda of
agreements (MOAs) and other agreements and contracts which shall be allowed to continue
until their expiry unless terminated for cause.


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CHAPTER XVI
FINAL PROVISIONS

‘SEC, 82, Separability Clause. - Should any provision of this Act be declared unconstitutional
or invalid, the same shall not affect the validity or legality of the other provisions,

SEC. 83. Repealing Clause. - Subsections (b), (4), (e), (1), (g) and (i) of Section 4 of Act No.
3915; Republic Act No, 460; Presidential Decrees Numbered 705, 1153, 1515, 1559 and 1775;
Letter of Instruction No, 818; Executive Orders Numbered 277 and 278, series of 1987; and
Executive Order No, 725, series of 1981 are hereby repealed, and all laws, orders, rules and
regulations or any part thereof which are inconsistent herewith are likewise hereby repealed or
amended accordingly

‘SEC. 84. Effectivity. - This Act shall take effect thirty (30) days from the date of its publication
in the Official Gazette or in at least two (2) national newspapers of general circulation.