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

NINETEENTH CONGRESS
First Regular Session

21

HOUSE BILL NO.

Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ and JUDE A. ACIDRE

EXPLANATORY NOTE,

The State is directly responsible for providing water security to all citizens and inhabitants
of its territory. Water nurtures and sustains life. Civil societies worldwide can neither endure nor
survive without properly managing their water resources for the effective and safe use of their
people.

The Philippines is a water-rich country. According to the World Bank (2015), the anaual
available water volume per capita in the country is twice that of Asia and six times the global
scarcity threshold. Yet, many of our people are deprived of efficient access to affordable, safe, and
reliable potable water and to proper sanitation services. This is because the governance and
maintenance of our water resources remains fragmented and uncoordinated, To date, there are
over 30 government agencies at both the national and local levels implementing separate and
disharmonized policies, plans, and programs to develop and operate water facilities and related
infrastructure for various uses, and to regulate water use, monitor water-related financial and
technical parameters, and set water tatiff.

‘The bill proposes to create the Department of Water Resources to serve as the primary
agency responsible for national policy-making, coordination, and management of all the water
resoutces in the Philippines. All government agencies related to water shall be rationalized under
this Department. Integrated Water Resources Management (IWRM) shall be adopted as the
strategic framework for water management policy-making and planning in the country. IWRM
promotes the coordinated development and management of water, land, and related resources in
order to maximize economic and social welfare in an equitable manner without compromising the
sustainability of vital ecosystems and the environment.

The bill also proposes to create an independent Water Regulatory Commission to ensure
the effective and adequate delivery of water and sanitation services throughout the country under
a credible, transparent, and accountable regulatory framework. This Commission shall always
protect the consumer welfare and reject abusive practices in the water industry


This measure was filed in the 18" Congress by Representatives Estrellita B. Suansing,
Horacio P. Suansing, Alfred D. Vargas, Vergara, Bernadette Herrera-Dy, Rufus B. Rodriguez, Ron
P. Salo, Angelina “Helen” Tan, Lorenz R. Defensor, Michael Odylon L. Romero, Jericho Jonas B.
Nograles, Erico Aristotle C. Aumentado, John Marvin “Yul Servo” Nieto, Josephine Ramirez-
Sato, Aurelio “Dong” D. Gonzales, Joey Sarte Salceda, Abraham “Bambol” N.. Tolentino, Cheryl
Deloso-Montalla, Juan Miguel Macapagal Arroyo, Joselito “Joe!” S. Sacdalan, Sol Aragones,
Deogracias Victor “DV” Savellano, Raul “Boboy” C. Tupas, Rufty B. Biazon, Teodorico T.
Haresco, Jr, Henry R. Villarica, Joy Myra Salvador-Tambunting, Eric L. Olivarez, Ferdinand L.
z, Luis Raymund “LRay” Villafuerte, Jr, Lord Allan Jay Q. Velasco, Aloy Lim, Frederick
‘Jay-jay”” C. Suarez, Aleta C. Suarez and Precious Hipolito Castelo.

In view of the forgoing, the immediate passage of the bill is earnestly sought.

Hernand
W. Siao, Davi

1N G. ROMUALDEZ
Representative
First District, Leyte

RDINAND

IE K. ROMUALDEZ JUDE YACIDRE
Representative Ry
Party-List, Tingog Sinirangan Party-List, Tingog Sinirangan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

21

HOUSE BILL NO.

Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ and JUDE A. ACIDRE

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

Be it enacted by the Senate and Honse of Representatives of the Philippines in Congress assembled:
CHAPTER I

GENERAL PROVISIONS
SECTION 1. Short Title, — This Act shall be known as the “National Water Act”.

C. 2. Declaration of Poly. ~ Access to water is a basic human right. All water belongs to the State

which shall govern its development and utilization for the people.

Iris hereby declared the policy of the State to ensure the provision of safe, adequate, affordable,

and sustainable water supply and improved sanitation services, while maintaining the protection,

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

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

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

1


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

works that adopt innovativ

solutions and international best practices to address the challenges of climate
change. Further, all water and water treatment infrastructure projects are hereby declared as projects
imbued with national interest

SEC. 3. Definition of Terms. ~ As used in this Act:

(a) Bulk water supplier refers to any entity, natural or juridical, whether public or private, supplying or
intending to supply large quantities of raw or treated water to buyers who will use these for their
own consumption, such as industrial companies, or for retail distribution to consumers such as
‘water service providers or real estate developers managing their own distribution network.

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

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

(d) Flood Risk Management (FRM) refers to such acts of defining and determining the appropriate
methods, acts, and protocols aimed at preventing and reducing the risk of incurring loss of both
life and property due to flood waters. Flood risk management consists of a cycle of prevention,

mitigation, adaptation, preparedn

ess and early warning, and response and recovery. The elements
of FRM include: integrating land-use planning and coastal zone management into water
management; adopting a holistic approach so that FRM is part of wider risk or multi-hazard

management of earthquak

, landslides, and storm surges; managing risk and uncertainty as a
whole so it not only mitigates hydrological uncertainties but also social, economic and political
uncertainties on account of human behavior and the cultural dimensions of FRM.

(©) Gender Equality efers to the principle asserting the equality of men and women and their right to
enjoy equal conditions realizing their full human-potentials to contribute to and benefit from the
results of development, and with the State recognizing that all human beings are free and equal in

dignity and rights.


(9) Infrastructure and public works refer only to wholly or primarily water-related projects and does not
include projects that do not fall within the purview of the objectives, power and duties of the
Department of Water Resources created under this Act.

(e) Integrated Water Resonre Management (IRM) refers to a systematic, collaborative. and multi-
stakeholder process which promotes the coordinated development and management of water,
land, and related resources within geophysical boundaries in order to maximize the resultant
economic and social welfare in an equitable manner, and without compromising the sustainability
of vital ecosystems.

(h) Levels of water supply refer to communal sources of water described according to location and size
of the recipient human settlement as follows:

(1) Level | or the point source is a protected well or a developed spring with an outlet but without
any distribution system, generally adaptable to rural and upland areas where -houses are thinly

scattered, and is a facility which usually serves an average of 15 households.

(2) Level I] or the communal faucet system or stand posts is a

‘stem composed of a water source,
a reservoir, a piped distribution network, and communal faucets where one faucet serves 4 to
6 households and is generally suitable for rural and urban fringe areas where houses are
clustered densely to justify a simple piped system.

(3) Level III or the waterworks system or individual house connections is a system with a water
source, a reservoir, a piped distribution network and household taps, suitable for densely
populated urban areas.

(i) Livense refers to the Water Supply and/or Sanitation Services Operating License that the Water

Regulatory Commission is authorized to grant and issue to service providers.

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

Commission.

(K) Missionary Water Services refer to water supply of services to areas that have no existing safe water
supply and services due to geographic limitation or absence of economic and market viability.

() National Water Resources Management Plan (NWRMP) refers to a policy document that contains a

framework to guide the development and management of all the water resources in the Philippines,
the general strategies and work to be pursued to ensure the sustainability of the resource towards
water security, and top-level direction on the utilization of existing water resources in line with
national development plans, policies, and programs in accordance with the IWRM framework.
‘The NWRMP shall also include a water infrastructure development program or all waters of the

country as well as provide general guidance on how this shall be supported within an integrated


financing framework that can draw from public, private, and international development funding
sources,
im) Net Waste Load refers to the difference of the initial waste load of the abstracted water and the

waste load of the final effluent dis

hharge of an industry

(9) Regulatory Units efer t0 the offices established under Section 20 of this Act which issue licenses
authorizing the operation of Water Supply and Sanitation Services, and provide, review, determine,
fix, and approve water and sewerage tariffs, rates, and charges that licensees may impose.

(0) River basin refers 10 an area of land drained by a stream or body of fixed water and its tributaries
which have a common outlet for surface run-off.

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

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

(©) Sediment management refers to contzol of sediment erosion and deposition in rivers, reservoirs, and
coastal zones through non-steuctural and structural measures and contzol works.

(8) Sustainable Development Goals (SDGs) also known as the 17 Global Goals refer to the universal call to
action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by
2030 adopted by all United Nations Member States in 2015.

(0) Septage is the liquid and solid material pumped from a septic tank, cesspool, or other primary
treatment source.

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

(©) Service Area refers to the area covered by the water distribution system, sewerage, and /or septage
management services,

(w) Semice Provider vefers to any entity, natural or juridical, whether private or public, providing or
intending to provide levels II & III water supply, including bulk water suppliers, sewerage, septage
treatment, and disposal services for domestic, residential, industrial, or commercial use.

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

or the combination thereof.


(y) Sewerage refers to any system or network of pipelines, ditches, channels or conduits including
pumping stations, lift stations and force mains, service connections including other infrastructure,
devices, ot appliances appurtenant thereto, which include the collection, transport, pumping and
treatment of sewage to a point of disposal

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

(aa) Social inclusion refers to the process of improving the terms for disadvantaged individuals and
groups to take part in society.

(bb) Tarif refer to such amounts which may be charged by licensees for their water supply and
sanitation services based on principles, standards, and guidelines established by the Department
of Water Resources.

(cc) Water Demand Management (WDM) refers to any method. whether technical, economic,
administrative, financial, or social that will accomplish one or more of the following:

(1) Reduce the quantity or quality of water required to accomplish a specific task;
(2) adjust the nature of the task or the way it is undertaken so that it can be accomplished with
less water of with lower quality water;

(3) Reduce the los:

in quantity or quality of water as it flows from source, through use, to disposal;
(4) Shift the timing of use from peak to off-peak periods; and
(5) Increase the ability of the water system to continue to serve society during times when water

is in short supply.

(da) Water Districts refer 10 government-owned and controlled corporations organized under
Presidential Decree No. 198, as amended, created primarily to acquire, install, operate, maintain,
and improve water supply and distribution systems for domestic, industrial and municipal uses of
residents and to provide, maintain and operate waste water collection, treatment and disposal
facilities within the boundaries of the district.

(ce) Water pollution refers to any alteration of the physical, chemical, biological, or radiological properties
of a body of water resulting in the impairment of its purity or quality

(f) Water Resource refers to water under the ground or groundwater, water above the ground such as
surface water, run-offs, floods, stormwater and urban drainage, treated wastewater, water in the
atmosphere or rain water, and the waters of the sea within the territorial jurisdiction of the
Philippines.

(gg) Water Resources Regions refer to the contiguous clusters of river basins which are grouped together

according to the hydrological boundaries, physiographic features, and homogeneity in climate,


whether or not they straddle different local government units, for administrative purposes under
the Department of Water Resources.

(hh) Water Service Provider (W'SP) refers to the water district, any Local Government Unit (LGU)-run
water utility, Barangay Waterworks and Sanitation Association (BWSA), Rural Waterworks
Sanitation Association (RWSA), cooperative and private sector entity that provides water supply
services to any given area,

(i) Water supply service refers to any activity comprising Levels I, 11 and III water supply including bulk
suppliers, suppliers to subdivisions, and other water service providers.

CHAPTER II
‘THE DEPARTMENT OF WATER RESOURCES
SEC. 4. The Department of Water Resonrces ~ There is hereby created and established the Department

of Water Resources, hereinafter referred to as the Department.

>. 5. Mandate of the Department. ~The Department shall be the primary agency responsible for

the comprehen:

ve and integrated identification and mapping of all water resources, planning, policy
formulation, and management of the ownership, appropriation, utilization, exploitation, development, and
protection of water resources in the Philippines to ensure the optimal use thereof for domestic and
municipal water supply, sanitation, irrigation, hydropower, industry, navigation, flood management, and
recreation except fisheries or aquaculture.

‘The Department shall also be the primary agency responsible for the planning and policy
formulation towards the attainment of universal access to safe, adequate, affordable, and sustainable water

supply, and improved sanitation services for all Filipinos.

‘The Department shall be the primary national agency to enforce Presidential Decree No. 1067
otherwise known as The Water Code of the Philippines and Republic Act No. 9275, otherwise known as the
Philippine Clean Water Ac of 2004
“The Department shall exercise the powers and functions of the defunct Pasig River Rehabilitation
Commission created under Executive Order No. 54 Series of 1999 and abolished under Executive Order
No. 93 Series of 2019, specifically the following roles that were transferred to the Manila Bay Task Force
and DENR through the latter EO:
(a) Update and take the lead in the overall implementation of the Pasig River Rehabilitation
Master Plan, which shall harness the Pasig River’s potential for transportation, recreation and

tourism purpos

while undertaking the rehabilitation and restoration of its maritime life; and

(b) Ensure that the easements provided for in the Civil Code and other relevant laws are enforced,
especially in all the esteros and waterways that drain into the Pasig River as well as abate the

dumping of untreated industrial wastewater and sewerage into the river, including all acts and


all acts and omissions in violation of Presidential Decree (PD) No. 984, s. 1976, as amended
entitled, Providing For The Revision Of Republic ct No. 3931, Commonly Known As The Pollution
Control Law, And For Other Purposes, PD No. 274, s. 1973 entitled, Pertaining To The Preservation,
Beautification, Improwment And Gainful Usilization Of The Pasig River, Providing For The Regulation
And Control Of Pollution Of The River And Its Banks In Order To Enhance Its Development, Thereby

Maximising Its Utilization For Socio-Economic Purposes, and other related laws.
SEC. 6. Guiting Principles, -In the pursuit of its mandate, the Department shall be guided by the

following key principles:

(a) The concept of good water governance for water security and sufficiency shall be adopted across
all levels of governance by stakeholders such as the national government, local government, non-

government organizations, private organizations, individuals, even global societal actors, and in

various sectors such as water supply, irrigation, fisheries, hydropower, navigation, ecosystem
services, flood management, climate change, and recreation. It shall entail publicly transparent,
socially accountable, and multi-stakeholder participatory water policy planning, management, and
decision-making processes.

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

(6) Integrated Water Resource Management (IWRM) shall be adopted as the basic framework which
is the coordinated development and management of water, land, and related resources within
hydrological boundaries to optimize economic and social welfare without compromising the

sustainability of vital ecos

ystems. The IWRM Framework shall include an enabling environment
that utilizes proper policies, legal instruments, and institutional frameworks for effective
implementation, participatory and collaborative water policy and management decisions, and
management instruments for efficient use of updated and accurate data, science-based decision
support systems, proper information, education, communication (IEC) programs, assessment and
allocation tools, ot regulatory functions. It shall observe the mutual accountability mechanism
among stakeholders at the national, regional, and global levels reinforcing multi-stakeholder
decision-making following a framework with specific, measurable, attainable, relevant, and timely
actions.

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

(©) Integrated and accurate data collection and analysis and the use of scientific decision support

systems shall be undertaken in water resources management including flood modeling and warning


systems that are essential for an effective, efficient, and sustainable water resources management

system,

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

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

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

establishment, operation, and maintenance of such

ems.

SEC 7. Objectives of the Department, ~The Department shall

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

(b) Prioritize and seck the immediate attainment of universal access to safe, adequate, affordable and
sustainable water supply and improved sanitation services for all Filipinos in a manner consistent

with the protection, preservation, and revival of the quality of the country’s water resources, and

to adopt all needed measures to advance the right of the people to a balanced and healthful ecology

in accord with the rhythm and harmony of nature.

(c) Steengthen and coordinate integrated water resources management planning and policy making to
ensure sustainable and fair allocation and efficient use of water resources among competing uses
and users;

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

(c) Develop sustainably, and manage water sources and water resources toward water security, taking
into consideration water, land, and related resources aimed at increasing water dependability for

different uses, optimizing economic benefits and social welfare without compromising the

sustainability of vital environmental systems;
(® Strengthen and coordinate policy making and planning towards ensuring the availability of water
for food security and energy security, as well as towards the protection of communities and

environments against flood and other water induced hazards including sediment hazards;


(g) Ensure that the strategy for water resources development and conservation is participatory, and
that planners, policymakers and users including community members are involved at all levels,
(h) Develop a standardized pricing framework for water use that accounts for environmental
externalities; and
(Ensure that all sources of water, including surface water, groundwater, rainwater and floodwater
are identified, mapped, monitored, conserved and managed for productive use and the resulting
wastewater is managed properly, reused, and responsibly disposed of following approved
environmental standards
SEC.8. Powers and Functions of the Department. ~The Department shall have the following powers
and functions:
1. Policymaking and Planning
(@) E

framework for water management policymaking and planning in the country and coordinate the

sure that Integrated Water Resources Management (IWRM) is adopted as the strategic

implementation, promotion, revision and enhancement of IWRM plans;

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

(©) Formulate and develop policies to promote universal access to safe, adequate, affordable, and

sustainable water supply, and improved sanitation services for all Filipinos;

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

(©) Undertake river basin survey, inventory and appraisal of water and related resources, and develop
comprehensive basin-wide plans of storage, retardation, and control to maximize conservation and

multipurpos

.¢ of water in the basin;

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

wide master plans;


(g) Strengthen and coordinate policy making and planning for flood management, integrated with
stormwater of urban drainage and appropriate retention or retarding basins in order to harvest and
reuse water, and ro plan against, prevent, and minimize the detrimental and catastrophic effects of
flooding;

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

@ Review, approve, and provide oversight over all water-related development plans and programs of
any ageney within the context of the NWRMP, and overall national plans and programs;

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

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

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

concerned agencies to promote and enable more PPPs in the sector;

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

(0) Ei

sure the effective implementation of all the pro

jons of Republic Act No. 9275, Presidential
Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter IT of Presidential Decree No. 856,
otherwise known as the Code on Sanitation of the Philippines;

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

(q) Issue and promulgate rules, regulations and guidelines as may be necessary to implement and

enforce its powers and functions under this Act.

10


IL. Resource Regulation

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

)

Regulate and control the utilization, abstraction, diversion and development of water resources,
taking in consideration their equitable distribution among competing demands and determine the

standards of beneficial and priority uses of water in times of crisis and national emergencies;

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

@

Regularly review regulations prescribed by any government agency pertaining to water use,
exploitation, development, and conservation or protection of waters, water resources, and

watershed or basin

eas with respect to this Act;

(©) Impose fees or charges, as 1

yy be deemed necessary for water resources conservation and
protection, such as:
(1) Polluter’s Fee, which shall be based on the net waste load depending on the wastewater charge
formula pursuant to Republic Act No. 9275;
(2) Raw water price, which shall take into account, among others, the scarcity of water; and
(3) Appropriate payment structures for environmental services:
() Deputize LGUs to collect the national fees or charges for resource regulation within their

respective jurisdictions;

lect, regularly update, monitor, and analyze water resources data including climatology,
hydrological and other water-related data and ensure that such data is easily accessible by relevant
and authorized users;

(b) Establish, operate, and maintain observation station networks and a centralized water resources
data center for the scientific survey and appraisal of surface and groundwater potentials of the
country, and determine the annual renewable water available per water resources region;

() Maintain a database that will contain updated relevant information on water data which will be
accessible by relevant and authorized users;

() Develop and continuously update a computerized decision support system that incorporates data

management systems relating to acquisition and database, model base in terms of physical design,

uu


planning and decision models, and user-friendly interface concerning graphical and visualization
tools;

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

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

HL. Institutional Arrangement with Public Water Organizations

(a) Develop guidelines including rules of partnership, between and among the Department, field

offic

of national government agencies, LGUs and other stakeholders in water resource
management, and facilitate the establishment of multi-stakeholder river basin organizations
(RBOS) per river basin, and strengthen and support existing RBOs and monitor their activities;

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

(©) Authorize its representatives or any deputized agent to enter any property of public dominion with
or without prior notice and consent, any private land, building or enclave, whether inhabited or
not, for the purpose of conducting hydrologic surveys and investigations, including assessing and

evaluating the conditions of water facilities

talled, and determining compliance with water laws
and standards;

(@) Provide technical assistance to water users including farmers, communities, and LGUs and other

water service providers (WSP) whether directly or in coordination with other agencies on all
aspects of integrated water resources management;

() Respond to consumer complaints, and ensure the adequate promotion of consumer interests;

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

(@ Appoint, hire, and maintain adequate staff and personnel, advisers of consultants with suitable

qualifications and experience, as necessary, subject to existing rules and regulations.

IV. Coordination
(a) Coordinate and integrate water resources development activities of the country within the context

of national plans and policies for social and economic development,

(b) Coordina

‘e with other government agencies, universities, academe and private professional groups

in all aspects of data gathering, the conduet of special studies and research on all related aspects of

water resources management and development such as climate change, enviconmental quality,

2


desalination, and the development of operating strategies, procedures, and protocols and

accompanying computerized decision tools for major water facilities;
(©) Coordinate with the concerned and relevant agencies engaged in flood control, flood risk
management, and drought risk management; and
(2) Coordinate proactively with LGUs to ensure the integration of water resources development plans
into their comprehensive land use plans (CLUPs), Comprehensive Development Plans (CDPs) or
Provincial Physical Framework and Development Plan (PPFDP).
V. Other Functions

(a) Create when necessary, water resource subsidiaries, instrumentalities, and entities to engage in
water transmission, water distribution, waste water treatment and management, and sanitation in
accordance with existing relevant laws,

(b) Enter into contracts, joint venture agreements or understanding, public-private partnerships, and
memorandum of agreements or understanding, either domestic or foreign, relating to investment
and financing water-related projects, under such terms and conditions as the Department may
deem proper and reasonable subject to existing laws.

(6) Exercise such other powers and functions necessary or incidental to the effective administration
and management of the country’s water resources
SEC. 9. Seuretary of the Department of Water Resources. ~ ‘The authority and responsibility for the

exercise of the mandate of the Department and for the discharge of its powers and functions shall be

vested in the Secretary of the Department, hereinafter referred to as the Secretary, who shall:

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

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

(©) Promulgate rules and regulations necessary to carry out the objectives, policies, and functions of
the Department;

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

(¢) Supervise all attached agencies and corporations in accordance with law;

() Represent the Department in contracts, awards, and other similar agreements;

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

(h) Act as the Chaisperson of the governing board of the attached agencies of the Department;

3B


(i) Designate and appoint officers and employees of the Department, excluding the Undersecretaries,
As

stant Secretaries, and Regional and Assistant Regional Directors, in accordance with the civil
service laws, rules and regulations; and

(i) Perform such other duties and responsibilities as may be provided by law.
SEC. 10. Ofte of she Secretary. ~ The Office of the Secretary shall be composed of the Secretary,

Undersecretary, Assistant Secretary and the Secretary’s immediate staff.

11. Underveretaries. ~ The Secretary shall be assisted by not more than five (5)
Undersecretaries, who shall be appointed by the President upon the recommendation of the Secretary
namely: Undersecretary for Resource Regulation and Governance, Undersecretary for Inland Waters and
Water for Agriculture, Undersecretary for Resource Development, Undersecretary for Planning and Policy
and Undersecretary for Missionary Water, Indigenous People, and Special Concerns.

The Secretary is hereby authorized to delineate and assign the respective functional areas of
responsibility of the Undersecretaries in accordance with the mandate and objectives of the Department:
Provided, That no Undersecretary shall be assigned purely to administrative responsibilities. Within their
respective functional areas of responsibility, the Undersecretaries shall:

(a) Advise and assist the Secretary in the formulation and implementation of the policies, plans,
programs and projects of the Department;

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

(c) Perform such other functions deemed necessary as may be assigned or delegated by the Secretary
to promote efficiency and effectiveness in the delivery of public services or as may be required by
law: Provided, That the Undersecretary for Planning and Policy shall, in coordination with the

Planning and Policy Service, be primarily responsible for advancing current efforts in attaining the

ultimate goal of universal access to water supply and sanitation systems, and sustainable

management of water resources under the SDGs, and the integration of water, energy,
environment and food security.

SEC. 12, Assistant Secretaries, ~The Secretary shall be assisted by six (6) Assistant Secretaries to be

appointed by the President of the Philippines upon the recommendation of the Secretary: one each for

Planning and Policy Service, Decision Support S

stem Service, Resource Regulatory Service,
Comprrollership and Financial Management Service, Legal and Legislative Service, and Administrative and
Human Resources Management Service

No person shall be appointed Secretary, Undersecretary and Assistant Secretary of the Department

unless the person is a citizen and resident of the Philippines, of good moral character, of proven integrity,

14


competence and expertise in water resource management: Provided, That at least one (1) of the
Undersecretaries and at least two (2) of the Assistant Secretaries shall be career officers.
SEC. 13. Organisational Structure. ~ ‘The Department shall be composed of the following
organizational units:
(a) Department Proper. ~ The Department shall consist of the Office of the Secretary, the Offices of the
Undersecretaries and Assistant Secretaries, the Internal Audit Office, the Public Affairs Office, the
Water Pollution Adjudication Board, the Planning and Policy Service, Decision Support System
Service, Administrative and Human Resources Service, Legal and Legislative Service,
Comptrollership and Financial Management Service, Resource Regulation Service, and the Water
Resources Regional Offices.

(b) Attached agencies. - The Department shall exercise administrative supervision over the following

agencies for purposes of policy and program coordination, monitoring, and evaluation:

(1) The Local Water Utilities Administration (LWUA), whose mandate, powers, and functions are
defined in Presidential Decree No. 198, otherwise known as the Public Water Utilities Act of
1973, as amended, shall be transferred from the Department of Public Works and Highways and
attached to the Department. It shall continue to primarily function as a specialized lending
institution for the promotion, development, and financing of local water utilities. In the
implementation of its functions, the LWUA shall:

(i) prescribe minimum standards and regulations in order to assure acceptable standards of
construction materials and supplies, maintenance, operation, personnel training,
accounting and fiscal practices for local water utilities;

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

monitor and evaluate local water standards; and

(iv) effect system integration, joint investment and operation, district annexation and
de-annexation whenever economically warranted as amended by Sec. 22, Presidential

Decree No. 768.
Q The Metropolitan Waterworks and Sewerage System (MWS:
functions are defined under Republic Act No. 6234, as amended entitled, 4m Act Creating The

, whose mandate, powers, and

Metropolitan Waterworks And Sewerage System And Dissolving The National Waterworks And Sewerage
Authority; And For And For Other Purposes, shall be transferred from the DPWH and attached to
the Department: Provided, That the MWSS shall continue to facilitate the exercise by the
concessionaizes of their responsibility; carry out accounting and notification functions;

monitor, report, and administer loans; perform related functions in connection with existing

15


projects; manage and dispose its retained assets; and manage and operate the Umiray-Angat
‘Transbasin Project.

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

Presidential Decree No. 1702;

(4) The Laguna Lake Development Authority (LDA), whose mandate, powers and functions are
defined under Republic Act No. 4850, as amended entitled, 4 Act Creating The Laguna Lake
Development Authority, Prescribing Its Powers, Functions And Duties, Providing Funds Therefor, And For
Other Purposes shall be transferred from the DENR and attached to the Department.

‘The LLDA shall continue to serve as the lake management and development authority similar
to a multistakeholder river basin organization and shall ensure the implementation of the
Laguna Lake Master Plan which shall be updated by the Department to ensure alignment with
the NWRMP,
Any other agency performing water resources management, conservation and protection functions
may be transferred to the Department as the President deems necessary.

(©) Offices, Functions and Personnel to be Completely Subsumed under the Department, ~ The following offices
with their powers, functions, personnel, applicable funds and appropriations, records, equipment

and property shall be subsumed under the Department:

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

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

(2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and functions
are provided in Executive Order No. 510 and Executive Order No. 816, as amended;

(3) ‘The Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened by
virtue of DENR Administrative Order (DAO) 2011-01 to coordinate the efforts of the
fourteen (14) national agencies covered by the Mandamus Order of the Supreme Court to
rehabilitate Manila Bay;

(4) The Water Resources Management Division of the Bureau of Soils and Water Management
of the Department of Agriculture (DA);

(5) ‘The Water Supply and Sanitation Unit of the Department of the Interior and Local
Government (DILG); and

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

(©) Functions to be Transfered to the Department. ~ The following functions of the respective agencies,

bureaus, and units

hall be transferred to the Department:

16


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

(2)The hydrological surveys monitoring of stream flow and water data collection function of the
Bureau of Design and Bureau of Research and Standards of the DPWH;

(3)The protection and conservation of natural wetlands such as lakes, marshes, swamps of the

Biodivers

ry Management Bureau of the DENR; and

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

(5)The flood management planning and sediment management function of the Flood Control
Management Cluster of the DPWH;

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

(¢) Support Serices - ‘The Department shall create the following support services:

(1) The Planuing and Policy Service shall provide the Department with the capability to undertake
‘water infrastructure development planning and programming, and shall exercise the following
functions

(i) Advise the Secretary on all matters relating to water resources planning;
(ii) Assist the Undersecretary for Planning and Policy on all matters related to the specific
functions of the position;
(iii) Formulate strategies and priorities for water resources management and development
consistent with national development objectives, and initiate or undertake relevant
surveys for development planning;

(iv) Develop and regularly ups

‘a comprehensive and integrated National Water
Resources Management Plan and ensure its integration into existing land use plans,

(¥) Coordinate siver-basin planning following the integrated water resources management

framework and the river-basin approach;

(vi) Formulate or update existing River Basin Master or Comprehensive Plans which
includes all aspects of water management and development such as_water supply and
sanitation, irrigation, flood control and stormwater or urban drainage, drought risk
management, water resource development systems and other public water works

projects, including phasing of implementation;

v7


(vii) Identify, based on the river basin master plan, priority packages for water
infrastructure development per river basin, including water supply, sanitation,
irrigation, flood control and stormwater or urban drainage, drought risk management,
water resource development systems and other public works projects, package project
proposals for funding and prioritize project implementation and the allocation of

funds and other resources and undertake ot supervise and evaluate the conduct of

bility studies and project preparation thereof;

Eva

luate and appraise all regional and inter-regional infrastructure water development
plans and programs as to their feasibility and consistency with approved strategies and
medium and long -term plans;
(ix) Gather, analyze. and organize needed statistical data and information;
(x) Provide technical assistance related to its functions to the other services, bureaus and
the regional offices as needed;
(xi) Conduct hydrological and hydraulic surveys and assessments of surface waters;
(xii) Develop general criteria and standards on project investigation, formulation, planning;
(xiii) Develop guidelines and standards on social inclusion in water resources management
and ensure policies, programs and plans are compliant with the gender and
development framework of the government;

(xiv) Coordin

te closely with PAGASA for rainfall and other climate data which shall be

considered in the planning for water resources development and management and for
various water infrastructure; and
(xv) Pertorm such functions and activites, as may be mandated by law, which are necessary
for the effective attainment of the abovementioned objectives.

») The Decision Support System Service shall provide the Department with water resource
management tools and computerized decision support system that incorporates a data
management system relating to acquisition and database and model base in terms of physical
design, planning and decision models including services related to networking, data
management, and information and knowledge or learning management systems for

administrative and non-technical support It shall provide the Secretary timely reports on the

status of various Department projects and activities. For this purpose, it shall exercise the
following functions:

(i) Provide the Secretary the nec:

essary data and processed information to aid in policy and

management decisions under the mandate of the Department;

18


0)

ii)

(iv)

(vy)

(i)

Publish available real-time raw water data as well as verified or validated water data in
print or electronic form using latest internet technology;
Conduct and publish in print and/or electronic form, standard data analysis such as basic
statistical analysis, trend analysis, analysis of runs, and cluster analysis;
Develop and continuously update water resource management, computerized decision
support systems (DSS) that incorporate data management systems relating to acquisition
and database, model base in terms of physical, design, planning and decision models, and
user-friendly interface such as graphical and visualization tools.
‘The DSS is composed of: 1) a measurement or data acquisition system; 2) information or
database management system; 3) analytical and numerical models for design, planning,
decision or evaluation purposes, and 4) a user-friendly interface which includes graphical
interface or visualization tools.
Develop and maintain specific models to include the following:
a) long-term climatologic and weather forecasting model;
b) watershed models and river-flood plain models;
©) groundwater models and coupled to surface water models;
d) flood forecasting model for major rivers;
€) optimization-simulation management models for watershed conservation,
conjunctive surface and groundwater use, irrigation scheduling, normal and
emergency operations of multi-purpose reservoirs; and
) water quality and ecological models.
Develop and administer the management information system and knowledge systems of
the Department to:
a) Retrieve, process, and monitor information on all projects and activities in the web
portal;

b) Conduct and apply systems and process engineering, software development, software

configuration management;

€) Develop and manage its corporate database, unified database for water industry, data
warehouse, other water information resources, library services and document
‘management and archiving services;

d) Develop and manage its Information and Communications Technology (ICT)
infrastructure and ICT related-services including computer networking and voice

communications services and data exchange, and

19


e) M

wwe the litern

y and training services of the Department on various ICT and,
Knowledge Management (IKM) tools and applications, including information and
knowledge management.

(vii) Perform such other related functions and activities which are necessary for the effective
administration of the management information and knowledge systems of the
Department.

(3) The Administrative and Human Resource Service shall provide the Department with services relating
to human resources development, personnel, records, facilities maintenance, medical and
dental, security, property and procurement services, and shall exercise the following functions:
(i) Advise the Secretary on all matters relating to internal administration and human

resources management;

(ii) Prepare and implement a

integrated personnel development plan that shall include
provisions for merit promotions, performance evaluation, job rotation, incentive

awards

ems, and health and welfare services;

(iii) Provide services related to human resource-teaining, education and development
including manpower, career planning and forecasting, and development of indigenous
training materials;

(iv) Develop, establish, and maintain an efficient and cost-effective property procurement
system and facilities and coordinate or otherwise interface with relevant agencies,
whether government or private, for the purpose of developing or upgrading the
systems

(v) Develop, establish, and maintain an efficient and effective security system covering,

among others, personnel, physical installations, facilities, equipment, documents and
materials including the conduct of security investigations;

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

administrative proce:

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

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

(ix) Perform such other related functions and activities which are necessary for the effective
management of the resources of the Department, including its human resources.
(A) The Legal and Legislative Research Service shall provide the Department with services on such legal

affairs as contract letting and litigation, legal and legislative research, complaints and

20


investigation, legal counselling and other matters of law, and shall exercise the following

functions:

(i) Advise the Secretary on all matters relating to legal and legislative affairs;
(ii) Prepare Department contracts and legal instruments, review and interpret all contracts

and ageeements entered into by the Department and evaluate all legal proposals;

Conduct administrative investigation and the review of administrative charges against
officers and employees of the Department;
(iv) Exercise functional jurisdiction over the legal staffs of Regional Offices;
(v) Provide legal assistance to the Department Proper, the bureaus and regional offices and
when requested, the attached corporations;
(vi) Develop and prepare the Department's Legislative Agenda, recommend presidential
certification of the urgency of priority water bills, and other water-related legislation;
(vii) Coordinate and maintain linkages between and among the various offices, bureaus,
regional offices and attached agencies to the Department along with other government
agencies on policy matters affecting the Department's mandate in relation to legislation;
(viii) Perform liaison and networking activities in relation to the enactment of related laws
relating to water resources issues in legislative policymaking bodies such as the Senate of
the Philippines, the House of Representatives, and the various Sanggunians;

(ix) Monitor the progress of the Department’s priority or certified bills to ensure their

passage; and
(x) Perform such functions and activities, as may be mandated by law, which are necessary
for the effective performance of the abovementioned objectives.
(5) The Comptrollership and Financial Management Service shall provide the Department — with

coordinated services relating to financial systems and procedures, budget, cash, accounting and

all financial housekeeping matters, and shall exercise the following functions:
(i) Advise the Secretary on all matters relating to the accounting of government expenditures
and receipts, budgeting and cash management, project finances and financial systems and
procedures;
(ii) Prepare budget proposals and pursue formal budget authorizations, undertake budget
execution, and prepare and submit all appropriate reports to the proper offices;
(iii) Develop and maintain accounting, financial and assets management systems, procedures

and practices in the Department Proper, Bureaus and Regional Offices;

2


(iv)

vy)

(vi)

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

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

financial management of the Department

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

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

(0)
(ii)

(ii)

)

)
wi)

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

Determine and evaluate waterworks and sewerage licenses, and submit evaluation
results to the Water Regulatory Commission for the latter’s consideration in granting of
licenses;
Investigate violations of the water rights and the Water Code, and impose the
appropriate sanctions in accordance with existing laws, rules and regulations as well as
future rules and regulations which the Department shall promulgate;

Adjudicate water use conflicts; and

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

regulation of water-related services.

(7) The Internal Audit Service shall regularly conduct a comprehensive audit of various Department

activities and shall exercise the following functions:

(0)
(ii)

(iv)

Advise the

-ctetary on all matters relating to management control and operations audit;
Conduct a performance audit of the management and operations of the Department,
its activities, the performance of all units, and determine the degree of compliance of all
operating units with established objectives, policies, standards, methods and
procedures, government regulations and contractual obligations of the Department;

Review and appraise systems and procedures, organizational structure, assets

‘management practices, accounting and other records, and performance standards such
as budgets and standard costs of the Department Proper, bureaus and regional offices;
Analyze and evaluate management deficiencies and recommend realistic courses of

action; and

2


(v) Perform such functions and activities, as may be mandated by law, which are necessary

for the effective performance of the abovementioned objectives.

(8) The Public Afiairs Service shall enhance relations with all stakeholders including the media, for
the effective dissemination of information relating to water-related issues, including important
announcements on policies and activities of the department that is of interest to the general
public, It shall ensure that women, men, elderly, and people with disabilities shall be consulted,
organized and take active pat in all aspects of water resources development and management
activities. It shall also lead the planning and organizing of special events, and shall exercise the
following functions:

(i) Public Awarene:

a) Advise the Secretary on matters pertaining to public affairs;

b) Develop and supervise the implementation of comprehensible communications
programs on relevant policies, programs and plans of the Department;

©) Produce and supervise the dissemination of communication materials in line with the
priorities of the Department and national government public information programs;

4) Conduct public opinion and attitude surveys to identify the interests and concerns of

the stakeholders of the Department;

€) Establish policies on the presentation and publication of the content of the
communication materials for dissemination to print and broadcast media;

f) Establish and maintain linkages with the tri-media and a presence in social media;

g) Coordinate the conduct of interviews and news conferences;

h) Make public announcements on matters relating to the work and activities of the
Department through the print and broadcast media, either through press releases or
live interviews;

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

J) Coordinate with the appropriate national government agencies involved in public
information affairs.

(ii) Promote Participation

a) Conduct public consultations and discussions;

b) Develop and disseminate relevant and appropriate materials and programs for public

information and education, as well as advocacy campaign;

23


€) Conduct seminars and workshops involving the LGUs and the genetal public on
current water issues and problems; and
4) Conduct capability building seminars of various stakeholders to promote meaningful
participation in the Department’s policy making, planning, development and
implementation of various programs and projects.
(ii) Special Events

a) Coordinate the organization and promotion of special events and water exhibits;

b) Actas the focal office for all water related events; and
©) Perform such functions and activities, as may be mandated by law, which are
necessary for the effective performance of the abovementioned objectives.

(9) Bureaus. ~ The Department shall create bureaus which shall each be headed by a Bureau Director.
The Bureau Director shall be responsible for the efficient and effective discharge of the functions
of the Bureau concerned. The Bureau Director shall be assisted by one (1) Assistant Director.

(1) Bureau of Flood Control and Drainage shall plan and design flood control and drainage structures

and facilities in accordance with technical standards, guidelines and manuals. For this

purpose, it shall have the following duties and responsibilities:

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

approach shall be adopted by making the IFM a part of a wider risk or multi-hazard

management system that includes earthquakes, landslides, fires, tsunami, and other
calamities of the same gravity or nature;

(ii) Integrate climate change and disaster risk reduction and management in policies and plans;

(iii) Prepare master plans of flood management and drainage in river basins in coordination
with the concerned water resources region and river basin organizations;

(iv) Prepare master plans for urban drainage in cities and municipalities;

(v) Prepare feasibility studies of recommended measures in the master plans}

(vi) Plan and design structural measures for flood control and drainage;

(Vii) Implement and collaborate with concerned agencies on the formulation and adoption of
non-structural measures for flood control and drainage:

‘or stream flows

) Patrol and investigate rivers, and mor

24


(ix) Conduct post-disaster investigation and evaluation and damage assessment of flood
infrastructures after extreme events;
(x) Conduct research and development on water and sediment-related disasters;
(xi) Develop design guidelines, criteria, and standards on flood control and drainage structures;
(xiiyProvide technical assistance to other agencies, LGUs, and other stakeholders;
(xiii) Advise the Secretary on declaring flood control areas and recommend guidelines for flood
plain management plans in these areas; and

(xiv) Perform such related activi

jes which are necessary for the effective performance of its
functions
(2) Burean of Water Quality Management shall supervise and exercise control over all aspects of water
quality management to ensure the sustainability of the country’s water resources and the
protection of the environment, It should take into account proper and integrated treatment of
freshwater and wastewater within the whole process. For this purpose, the Bureau shall
exercise the following functions:

(i) Establish water quality guidelines for freshwater and coastal or marine waters as basis for
classifying water bodies in the country. Specifically, develop water quality indices or
composite metrics to measure the quality status and health of natural water bodies in
tclation to ecological integrity and function;

(ii) Establish effluent standards for point discharges to receiving bodies of water;

(i

(iv)Prepare an integrated water quality management framework;

JEstablish internationally accepted procedures for sampling and analysis;

(v) Prepare the ten-year water quality management plans for each water quality management

area as part of the River Basin Master Plans and in support of the NWRMP;
(vi) Classify: groundwater sources and prepare a national groundwater vulnerability map;
(vii) Chassity or reclassify all water bodies according to their beneficial usages using the
established water quality guidelines established;
(viii) Issue permits, clearances, and similar instruments pursuant to the Clean Water Act of 2004;
(ix)Collect the wastewater discharge fees for all permittees;
(x) Monitor the compliance of water discharge permittees with the effluent standards;
(xi)Regularly monitor the water quality of major water bodies in the country and analyze the

data to identify possible sources of pollution;

(xii) Issue notices of violations and/or cease and desist orders for those found in violation;

25


(xiii) File the needed cases against violators
(WPAB);

with the Water Pollution Adjudication Board

(xiv) Serve as secretariat of the WPAB; and
(xv) Perform such functions and activities, as may be mandated by law, which are necessary for
the effective performance of the abovementioned objectives

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

, shall be the responsibility of the Department. Each WRRO shall perform the
following duties and responsibilities:

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

(ii) Advocate and strongly support the creation and functioning of multistakeholder river
basin organizations (RBOs) and serve as the secretariat of the said RBOs;

(iii) Undertake and evaluate the planning, design, and work supervision functions of the
Department for the water infrastructures within the region;

(iv) Ensure the implementation of laws, policies, programs, rules and regulations regarding the
abovementioned infrastructure as well as public and private physical structures;

(v) Provide technical assistance related to the water-related functions of other agencies within
the region especially the local government;

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

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

(viii) Perform such functions and activities, as may be mandated by law, which are necessary for
the effective performance of the abovementioned objectives.

‘The Department shall retain existing Project Management Offices as may be required, which shall
be under the supervision and control of the appropriate Water Resources Regional Office unless otherwise
determined by the Secretary for reasons of supra regional scope, magnitude and multi-functional

coverage.

26


Zach Water Resources Regional Office shall be headed by a Water Resources Regional Director
who shall be responsible for efficiently and effectively carrying out the duties and responsibilities of the
Office. Towards this end, the Water Resources Regional Director shall exercise functional and
administrative supervision over all units within the region and is authorized to commit resources and assign
personnel to integrated regional water resources management, water supply and sanitation management,

and flood control and flood risk management initiatives. The Water Resources Regional Director shall

also perform

ich other related dluties and responsibilities as may be assigned or delegated by the Secretary
or as may be required by law.

The Water Resources Regional Director shall be assisted by two (2) Assistant Water Resources
Regional Office Directors who shall exercise supervision over (1) the planning, project design and
evaluation function and (2) technical assistance to the River Basin Organizations within the water resources
region.

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

members,

‘The Board shall assume the powers and functions of the National Pollution Control Commission
with respect to the adjudication of water pollution cases under Republic Act No, 3931 entitled, .4n ct
Creating The National Water And Air Pollution Control Commission, Presidential Decree 984 entitled Providing
For The Revision Of Republic.Act No, 3931, Commonty Known as the Pollution Control Law, And For Other Purposes,
particularly with respect to Section 6 letters ¢, f, g, j, k and Republic Act No. 9275. The Bureau of Water
Quality Management shall serve as the Secretariat of the Board. These powers and functions may be
delegated to the field officers of the Department in accordance with rules and regulations to be
promulgated by the Board.
CHAPTER III
INTERDEPARTMENTAL RELATIONS
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT
SEC. 15. Interface and Institutional Arrangements with Other Agencies. —
(a) The Department of Health (DOH) shall continue to have primary authority and responsibility for
setting and enforcing drinking water quality standards. The Department shall coordinate with the
DOH in this aspect, and shall ensure consistency of standards and targets, as well as. the

compliance of permittees with mandated standards;

2


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

(©) The Department of Energy (DOE) and the National Power Corporation (NPC) shall continue to

have primary authority and responsibil

for establishing and operating hydropower plants, but
shall ensure that hydropower plant development plans are consistent with the National Water
Development and Management Plan;

(@) The Department shall coordinate with the DA to ensure agricultural development that reduces
long-term pollution for surface water and groundwater, and agricultural and industrial economic

development that employ

water efficiency, water recycling or reuse, and the appropriate treatment
of wastewater;

(©) The Department shall coordinate with the National Disaster Risk Reduction Management Council
(NDRRMC) to ensure that its plans and designs for flood control, flood risk management and
drought tisk management are aligned with the objectives and plans of the Department;

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

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

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

The Department shall coordinate with relevant government agencies, including local government

units

GUs), with respect to development projects and shall ensure cross-cutting collaboration.
between and among all water subsectors and facilitate inter-agency subsector coordination,
strategic development, planning, monitoring and provision of technical, institutional and financial
re

SEC. 16. National Water Sector Policy Board. ~ The National Water Sector Policy Board (NWSPB)

acity building support to thei different stakeholders at the water subsector level.

shall be created and shall be headed by the Secretary of the Department of Water Resources with the
Secretary of the National Economic and Development Authority as the Vice-Chairperson, and the
Secretaries of the DOH, DILG, DOE, DA, Department of Social Welfare and Development;
DPWH; Department of Budget and Management (DBM); Office of the President, and DENR, and

28


National Commission on Indigenous Peoples as members. The Department shall provide personnel to
serve as Secretariat to the Board

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

(a) Approve the NWRMP which shall serv

principal guide to water management efforts in the

country and shall be reviewed every five (5)-

ars interval, ot as may be deemed necessary, in order

to ensure its relevance to the times;

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

(6) Advise the President on the status of water management and supply, recommend to the President
the declaration of a state calamity in areas affected by water supply, and submit proposals to restore
normalcy in the affected areas;

(@) Ensure  multi-stakeholder participation in the development, updating, and sharing of information
system as policy, planning and decision-making tools consistent with IWRM.

SEC18. Transfer of Rights and Obligations. ~The Depattment shall, by virtue of this Act, be
subrogated to all the rights and assume all the obligations of the government agencies and units whose

powers and functions have been subsumed, absorbed, transferred or attached to the Department-in

accordance with the rules and regulations of the Commission on Audit, and the Civil Service Commission,

and other applicable la

's. The transfer of powers and functions as herein provided shall take effect within

(6) months of the effectivity of this Act. As such, all affected agencies, offices, units shall continue to
function under their present mandates.

CHAPTER IV
WATER REGULATORY COMMISSION

C19, Water Regulatory Commission. ~‘There is hereby created and established as an independent,

SI
quasi-judicial regulatory body to be known as the Water Regulatory Commission, hereinafter referred to
as the Commission, which shall be organized within one hundred twenty (120) days after the effectivity of
this Act

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

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

SEC. 20. The Regulatory Units. ~ The regulatory units of the Commission shall be composed of the

central regulatory unit and the regional regulatory units.

29


The economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, PEZA, and
TIEZ. ate hereby transferred (0 the Commission, and shall collectively comprise its central regulatory

unit for water

supply and sanitation services that: (a) provide services to more than one province; and (b)
are owned, operated and/or maintained by special economic zones and Metro Manila concessionaires.

‘The regional regulatory units shall be established by the Commission in accordance with this Act
and the rules, regulations, guidelines, and standards that the Commission shall issue.

SEC. 21. Powers and Functions of the Commission. — The overall authority and powers of the
Commission shall cover and apply to all service providers, whether private or public, providing of
intending to provide levels II & II] water supply, including suppliers to subdivisions and foe other service
providers, sewerage, and/or septage treatment and disposal services for domestic, residential, institutional,
industrial or commercial use,

The Commission shall exercise the following powers and functions:

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

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

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

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

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

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

(2) Require the submis

ion reports of finances and operations, verified under oaths by the owner

or president and secretary of the board of the licensee;

(b) Determine and require the monitoring and submission of such data, statistics and other

information from the regulatory units and any or all licensees as may be necessary for the

30


effective and efficient exercise of its duties, functions, powers and responsibilities,

(Investigate, motu propio or upon a written complaint, any matter concerning the operation of
the service and issues on price manipulation and anti-competitive behavior;

(i) Impose penalties and fines against any licensee or against its owners, directors, officers, agents
or representatives for any violation of this Act or of the license, order, rule regulation or
requirement issued by the Commission;

(&) Require any licensee to pay the actual expenses incurred by the Commission in any
investigation if it shall be found that a licensee violated any provision of this Act or of the
license, order, rule regulation or requirement issued by the Commission;

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

(m) Deputize agents, whether from the public oF private sector, to assist in the performance of any

of the powers and functions of the Commission;

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

(0) Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, with suitable
qualifications and experience, as necessary;

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

(@) Such other incidental powers and functions as may be necessary to attain the objectives of this

‘Act.
c.

Powers and Functions ofthe Regulatory Units, ~ The regulatory units of the Commission shall

have the following powers and functions:

(a) Issue licenses authorizing the operation of water supply and sanitation services in any
specified area or areas within the Philippines.

(b) Impose fines, charges and other penalties upon any provider and/or its officers and
stockholders who shall fail or refuse to register or obtain a license prior to operation or

commencement of business, as provided hereunder.

(©) Review, determine, fix, and approve, consistent with the rules, guidelines, procedures and

methodologies which the Commission shall provide, proposed water and sewerage and

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septage management tariffs, rates and charges that licensees may impose upon their

consumers;

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

(©) Enforce technical, financial, and other performance standards set by the Commission for
licensees or utilities;

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

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

warra

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

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

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

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

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

(1) when the facts and circumstances on the strength of which the license was issued have
been materially misrepresented or have materially changed;

(2) where the licensee has failed to meet or comply with terms, conditions, and performance
targets, including but not limited to service expansion, that may have been set in the license;

(3) where the licensee is found to be manifestly inefficient in the operation of or provision of
water supply and sanitation services in its area; or

(4) when the licensee thereof has violated or willfully refused to comply with any order, rule
or regulation of the Commission or any provision of this Act;

(m) Appoint an interim management committee to ensure continuity of service in case a licensee

fails to meet the conditions of the license; and

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(n) Submit performance plans and reports as required by the Commission,
SEC. 23. Composition ofthe Water Regulatory Commission. —

(a) The Commission shall be a collegial body composed of five (5) full-time members consisting of
‘a Chairperson and four (4) members, who shall all be appointed by the President of the
Philippines. All members of the Commission must be citizens and residents of the Philippines, at
least thitty five (35) years of age, and of good moral character, of recognized integrity and
competence in the field of law, business, commerce, finance, accounting or public administration,
water oF utility economics, management, physical or engineering services, hydrology and other
related services, with at least three (3) years of actual and distinguished experience in their
respective fields of expertise: Provided, That out of the four (4) members of the Commission, at
least one (1) shall be a member of the Philippine Bar with at least ten (10) years of experience in
the active practice of law, and at least one (1) shall be a certified public accountant with at least
ten (10) years of experience in active practice.

(b) The term of office of each member of the Commission shall be seven (7) years: Pronided, That
among the members first appointed, the Chaigperson shall serve for a period of seven (7) years,
two (2) members shall serve for five (5) years and the other two (2) members shall serve for
three (3) years: Provided further, That any member whose term has expired as specified herein shall
serve as such until a successor shall have been appointed and qualified: Provided furthermore, That
any appointment to fill a vacaney in the Commission arising from death, removal, retirement or
resignation shall be made only for the unexpired term: Provided, finaly, That in no case shall any
member serve for more than seven (7) years in the Commission.

(6) The Commission shall meet as often as may be necessary on such day or days as the Chairperson
may fix. The presence of at least three (3) members of the Commission shall constitute a quorum,
which shall be necessary for the transaction of any business. The affirmative vote of majority of
the members of the Commission where a quorum is present shall be necessary for the adoption
of any order, resolution, decisions, or other act of the Commission in the exercise of its quasi-
judicial functions: Provided, That in promulgating rules, regulations, guidelines and in exercising its
quasi-legislative functions, an affirmative vote of three (3) members shall be required.

(@) The Cl

airperson of the Commission shall exercise general executive control and supervision

over the Commission and its members, staff and personnel, agents and representatives. Within
three (3) months from the creation of the Commission and the appointment of all Members of
the Commission, the Chairperson shall determine and establish the organizational structure and

plantilla positions necessary to carry out the powers and functions of the Commission, including

33


those of the central and provincial regulatory units subject to the review and approval of the
DBM.
The plantilla positions of the Commission shall be filled by regular appointments in accordance
with Civil Service laws, rules, and regulations. Members of the Commission shall enjoy security
of tenure and shall not be suspended or removed from office except for just cause as specified by
law.

(¢) The Chairperson and members of the Commission or any of theie relatives within the fourth civil
degree of consanguinity or affinity, legitimate or common law, shall be prohibited from holding
any interest whatsoever, either as investor, stockholder, officer or director, in any company or
entity engaged in provision of water supply and distribution, septage management and sewerage
services and must, therefore, divest through sale or legal disposition of any and all interests in the
‘water sector upon assumption to office.

SEC. 24. Secretariat of the Commission. ~The Commission shall establish a Secretariat which shall
provide the Commission with technical and support services including the following:
(a) Provide the necessaty technical inputs and secretariat support to the Commission to facilitate the
conduct of its functions;
(b)Coordinate with Regulatory Units to ensure proper implementation of the rules, regulations and
guidelines promulgated by the Commission;

(c) Monitor and assess activities of the Regulatory Units vis-i

their respective annual performance
plans and targets;
(d)Maintain a database on the water supply and sanitation subsector; and
(e)Coordinate with other relevant agencies of the national or local government on any matter relating
to water supply and sanitation,

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

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

SEC. 26. Compensation and Other Emoluments, ~ The compensation of the members of the

Commission and its staff shall conform to provisions of Republic Act No. 6758 as amended, otherwise

known as the Compensation and Position Classification Act of 1989.

34


CHAPTER V
REGISTRATION AND LICENSING
SEC. 27. Registration and Licensing of All Water Supply and Sanitation Services, ~ All water supply and
sanitation service providers, including bulk water suppliers and those providing services to subdivisions

and other service provide

s, shall register with the Commission and, subject to such rules, guidelines,

procedures and other issuances of the Commission, obtain a license to operate from the appropriate
regulatory units.

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

Unless otherwise provided in this Act or by the Commission, no public water supply and sanitation,
service provider shall commence or conduct the business of providing-water supply and sanitation services
without first obtaining a license.

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

SEC 28. Conditions of License. ~ The Commission or the concerned regulatory unit, may impose

such conditions on the licensee as it may deem necessary, such as

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

(b) Term fixing the duration of the privilege.

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

(@ Minimum technical performance and service level standards.

(©) Expansion targets and service level improvements over time.

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

(@ Reportorial requirements and obligations of the grantee.

(h)Submission to annual performance audit by the Commission or its duly authorized
representative(s).

The Commission shall specify the requirements and procedure for existing holders of \ Certificate

of Public Convenience (CPC), Certificates-of Public Convenience and Necessity (CPCN) issued by

35


NWRB, or Certific

te of Conformance (CoC) issued by LWUA, to convert their existing certificates into
licenses to operate in accordance with Sec. 27 herein.

All existing providers of water supply and sanitation services without a legal and valid Certificate
of Public Convenience, Certificate of Public Convenience and Necessity, or Certificate of Conformance
shall register with the Commission and apply for a license within six (6) months from the effectivity of
this Act

SEC. 29. Rights and Duties of Licensees. —

(a) Any person granted a license under this Act shall have the obligation to ensure that licensed
activities are conducted to further public interest and, in particular:
(1) Foster the maintenance and development of efficient, coordinated, and viable operation of

their licensed activities;

Q)

Snsure that thei water supply and sanitation services are provided in a diligent,

cons

ntious and workman like manner, in accordance with applicable laws rules and
regulations issued by the Commission and the generally accepted standards and practices of
the water supply and sanitation industry; and
(3) Comply with drinking water quality requirements and standards that may be established by
the Commission.

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

(6) Subject to any condition oF limitation laid down in the license, a licensee may discontinue water
supply and sanitation services to a customer if such customer defaults in the payment of fees due
to the licensee for the water supplied or sanitation services provided, or for acts of pilferage
pursuant to Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the Water Crisis
Act of 1995.

(d) Any license issued under this Act shall contain provisions designed to ensure that licensees:

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

(2) Prepare, within three (3) months from the issuance of a license, in consultation with its
customers, a Customer Service Code specifying the manner and procedure for: (a) metering,
billing, and collection of the licensee’s approved tariff and other charges, (b) disconnection or
suspension of service in case of non-payment of tariffs and/or other charges, or acts of
pilferage, and (c) recommendation and recovery of arrears in tariffs and other charges,

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

36


license and as may be required by the Commission; and
(4) Maintain and upon request by anyone during regular office hours, promptly make available for
scrutiny and inspection such data, statisties and other information, as may be required by the
Commission
SEC. 30. Seting Tariff, Rates, and Other Charges. ~ Regulatory units shall establish tariffs, rates and
other charges which are fair and reasonable, and ensure economic viability and a fair return on investments.
“Tariffs, rates and charges shall be based on and consistent with a rate-setting methodology that
the Commission shall, after due consultation, define and publish, taking into account the following, among
others:
(@) Reasonable and prudent capital and recurrent costs of providing the service including a
reasonable rate of return on capital;
(b) Efficiency of the service;
(©) Incentives for enhancement of efficiency;
(@) Willingness to pay of the customers/ consumers;
(©) Equity considerations; and
(0) Administrative simplicity.
“Tariffs, rates, and charges set by the regulatory units shall be presumed valid and reasonable unless

4 protest of contest is filed with the Commission.

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

SI

. 32. Innovative Schemes to Improve Efficiency and Management of Systems. - The Commission shall

promote innovative schemes stich as the consolidation or integration of water supply and sanitation

services, or providers in the same service area, where it shall result in improved efficiency, service
expansion and lower-costs.

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

CHAPTER VI
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION

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

proceeding, the Commission shall:

37


(a) Issue subpoena duces teoun and subpoena ad testifcandune,

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

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

SEC. 34. Orders and Decisions of the Commission. ~ Any order, resolution, or decisions of the
Commission shall be promulgated promptly, expeditiously, reasonably, and in writing, and shall state
clearly and distinctly the facts and law on which it is based.

‘The Commission shall publish and make available for public inspection, all decisions and final
orders in the adjudication of contested cases or applications.

SEC. 35. Appeals Procedure and Prohibition Against Injunction, —

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

suspension of stay of execution of such orders, rulings, and decisions.

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

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

CHAPTER VIL
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION

CC. 36. Interface with Other Sector Regulators. —

S

(a) The DENR shall continue to exercise primary jurisdiction over programs aimed at -protecting
the environment and the quality of water sources from waste and pollution, and shall
promulgate rules, regulations, and standards in this regard. The Department of Health (DOH)
shall continue to exercise primary jurisdiction over the determination and enforcement of
standards for quality drinking water and sanitation

(b) The Commission shall coordinate with the:

38


(1) DOH to ensure that the standards and targets for quality drinking water and sanitation are

consist

«ly complied with;
(2) LGUs for development projects relating to water supply and sanitation; and
(3) Department of Public Works and Highways for flood control and harnessing and
impounding of water.
SEC. 37. Transfer of Rights and Obligations. - The Commission shall, by vietue of this Act, be
subrogated to all the rights, and assume all the obligations, of the Water Utilities Division of the NWRB,

the regulatory offices of MWSS and LWUA, the regulatory units of all special economic zones, and all
other government agencies and units whose powers and functions have been transferred to the
Commission.

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

All agenci

tansferred, subsumed and attached to the Department, shall continue to function

under their present mandates until the six-month transition period mandated under this Act shall have
lapsed. The heads of the affected agencies shall continue to serve until replaced.

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

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

Employees opting to be separated from the service as a consequence of the consolidation, and
reconstitution under the provisions of this Act shall, within one (1) month from their separation or phase
out from the service, receive separation benefits in accordance with existing laws, and those who are
qualified to retire shall be allowed to retire and be entitled to all benefits under existing retirement laws.

SEC. 39, Water Trust Find. ~ There is hereby created a Water Trust Fund in the Bureau of Treasury.
All non-tax revenues, including raw water pricing, permit fees, registration fees, supervision and regulation

enforcement fees, filing fees, testing fees, and other service income from the use of water resources shall

39


be remitted to the Water Trust Fund, The trust fund shall be accounted separately from the government's
general revenues and shall be automatically appropriated to the Department. Proceeds from the trust fund
shall be utilized for water development, water sanitation and waste water treatment and management, and
water sustainability programs and projects authorized under this Act: Provided, That a maximum of ten
percent (10%) of the otal income generated from raw water extraction shall be given as share of the
concerned local government unit or indigenous peoples (IP) community who own the specific areas or
land where the raw water was sourced
CHAPTER VIII
FINAL PROVISIONS.

Sec. 40. Applicability of Ease of Doing Business Law. ~The prescribed processing time provided under
Section 9.b of Republic Act No. 11032, otherwise known as the Ease of Doing Business and Efficient Government
Serniee Deliveyy ct of 2018, shall be applicable to all agencies and LGUs covered under this Act particularly
‘on accessing government services.

Sec. 41. Transitory Provisions. ~ Performance audit of all water-related agencies and institutions,

including LWUA and water districts, MWSS, MWSS-RO and its concessionaires, LGU-run utilities,

Yourism Infrastructure and Enterprise Zone Authority, Philippine Economic Zone Authority, Bases
Conversion and Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA, shall be
conducted by the Department.

SEC. 42. -Ippropriations ~The amount necessary t0 cover the initial implementation of this Act

shall be charged against the currents year’s appropriations of the agencies and offices transferred and

umed by the Department and the Commission in the General Appropriations Act. Thereafter, such
sums as may be necessary for the continued implementation of the Act shall be included in the annual
GAA.

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

SEC. 44. Sepurability Clanse. ~f any reason, any portion or provision of this Act shall be held
unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be in full force

and effect.

C. 45. Repealing Clanse. ~ (a) The following provisions are hereby repealed:
1) Section 3 (h) and Section 12 on the provision with respect to fixing of water rates and sanitation
service fees, Section 3 (n) on the provision with respect to regulation of waterworks and deep wells, and

Section 3 (p) on the provision with respect to regulation of waterworks and sanitation systems in privately

40


owned subdivisions of Republic Act 6234 entitled, An Act Creating The Metropolitan Waterworks And Sewerage
System And Dissolsing The National Waterworks And Sewerage Authority, And For Other Purposes, as amended.

2) Title III on Local Water Utilities Administration Law of Presidential Decree No. 198 otherwise
known as the Provincial Water Uniltes Act of 1973, as amended by Letter of Instruction No. 700 - Providing
Measures To Control And Regulate Increase In Water Rates, Letter of Instruction No. 744 - Relative To Reliable
Water Supply At Reasonable Rates In The Countryside on the, Executive Order No. 124, 30 January 1987 -
Reorganization Act of the Ministry of Public Works and Highways, Executive Order No. 123, 30 January 1987 -
Reorganization Act of Ministry of Social Services and Development.

3) Republic Act No. 3601 as amended by Presidential Decree No. 552 and Presidential Decree
No. 1702 pertaining to the creation of the National Irrigation Administration;

4) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order No. 124, dated
30 January 1987, Reorganizing the Department of Public Works and Highways, Redefining Its Powers and Functions,
and For Other Purposes on tenaming and reorganizing the National Water Resources Council into the
National Water Resources Board.

(b) The following provisions are hereby amended accordingly:

1) Section 3 parageaph 3 Commonwealth Act No. 146, as amended, otherwise known as the Public

Service Act pertaining to all cases involving the fixing of rates;
2) Section 154, Article V, Chapter I, Title One, Book II of Republic Act No. 7160, as amended,

otherwise known as the “I ocal Gorerument Code of 1991", and its implementing rules and regulations on the

power of the local government units to fix the rates of water utilities owned, operated and maintained by

them within their jurisdiction is hereby repealed or modified accordingly

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

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

5) Sections 7 and 8 on the adjudication of water pollution cases under Republic Act No. 3931
entitled, Anat Creating The National Water And Air Pollution Control Commission, pasticularly with tespect to

Section 6 letters

8) i, k Presidential Decree 984 entitled, Providing for the Revision of Republic Act No. 3931,

Commonly Known as the Pollution Control Law, and For Other Purposes;

6) Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the “Philippine Clean Water

Act of 2004”;

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

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

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

All other laws, presidential dectees, executive orders, presidential proclamations, rules and
regulations, ot parts thereof which are inconsistent with the provisions of this Act are hereby repealed or
amended accordingly

SEC. 46, Eifetivity. ~'This Act shall take effect fifteen (15) days after its publication in the Official
Garette or in a newspaper of general circulation,

Approved,

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