NINETEENTH CONGRESS OF THE ) ft RECEIVED a2) a\

REPUBLIC OF THE PHILIPPINES ) 3 DATEREB as a
First Regular Session )
HOUSE OF REPRESENTATIVES
HeB.No/ 121

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING FOR THE MODERNIZATION OF THE PHILIPPINE INSTITUTE OF
VOLCANOLOGY AND SEISMOLOGY (PHIVOLCS), PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The location of the Philippines atop the Pacific Ring of Fire and adjacent to the
Pacific Ocean makes the country susceptible to hazards like volcanic eruption,
earthquakes, tsunamis and other seismic events. In 2020 alone, the Philippine Institute
of Volcanology and Seismology (PHIVOLCS) recorded about 14,095 earthquake events
within the Philippine area of responsibility — 59 of which have registered strengths of
magnitude 5.0 and higher.

Volcanic eruption and other seismic activities cause significant damage to the
lives and livelihood of those inhabiting the affected localities. The eruption of Taal
Volcano in 2020, for instance, caused about P3.41 billion of damage to infrastructure
and agriculture’. More recently, the Magnitude 7.0 earthquake that rocked Metro
Manila and the rest of Northern and Central Luzon last July 22, 2022 killed 11 people
and caused an estimated P2.65 billion of damage to infrastructure’. Given the
proximity of many of our urban areas to active and potentially-active volcanoes and

+ National Disaster Risk Reduction and Management Council (2020 March 6). Situational Report No. 87 re Taal
Volcano Eruption.

2 National Disaster Risk Reduction and Management Council (2022 August 22). Situational Report No. 20 re
Magnitude 7.0 Earthquake in Tayum, Abra.


faults, the Philippines needs a reliable government agency that can effectively mitigate
the adverse effects of earthquakes and other geological and seismic events on the
lives and properties of Filipinos.

This bill seeks to modernize PHIVOLCS, which traces its roots to the Commission
of Volcanology created in 1952 by virtue of Republic Act No. 766. The bill directs the
agency to undertake a three-(3-) year modernization program that would ensure that
the technical and operational capacity of the agency remains responsive to the needs
of the time. This modernization program covers the acquisition and upgrading of
PHIVOLCS facilities and equipment; development of systems for monitoring, early
warning, forecasting, and information dissemination; enhancement of mechanism for
information sharing with other government agencies and non-government
organizations; empowerment of the PHIVOLCS workforce; and strengthening of the
agenqy's institutional linkages. To finance the modernization program, the bill creates
@ PHIVOLCS Modernization Fund comprised of five billion pesos (P5,000,000,000) to
be sourced from the Bases Conversion and Development Authority, as well as proceeds
from local or foreign loans, donations, grants, gifts, endowments, legacies and
bequests.

Through these interventions, the objectives to strengthen the role of PHIVOLCS
as the premier national volcano and earthquake monitoring and information agency
and to attain its vision as the center of excellence in the field of volcanology and
seismology would have better chances of being accomplished.

In view of the foregoing, the approval of this bill is earnestly sought.

/mdg


.

NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

We No, 7121

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING FOR THE MODERNIZATION OF THE PHILIPPINE INSTITUTE OF
VOLCANOLOGY AND SEISMOLOGY (PHIVOLCS), PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES

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

Section 1. Title. — This Act shall be known as the “PHIVOLCS Modernization
Act”.

Sec. 2. Declaration of Policy. — It is hereby declared a policy of the State to
recognize the critical role of science and technology in national development and
Progress, and to utilize scientific and technical knowledge and information in ensuring
the sustainment of economic progress, the safety and well-being of the Filipino people,
and the protection and preservation of the environment and a balanced and healthful
ecology. Towards this end, and in cognizance of the need to strengthen public sector
capability to mitigate disasters that may arise from volcanic eruptions, earthquakes,
tsunamis and other related geotectonic phenomena through sound application of
geology, geophysics, geodetic engineering and allied sciences, the State shall
undertake the modernization of the Philippine Institute of Volcanology and Seismology
(PHIVOLCS) to improve the technical and operational capacity of the agency,
strengthen its role as the premier national volcano and earthquake monitoring and
information agency, and realize its vision as the center of excellence for related
information and services.


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Sec. 3. PHIVOLCS Mandate. - The PHIVOLCS shall be mandated to perform the
following:

(a) Predict the occurrence of volcanic eruptions and earthquakes, and their
related geotectonic phenomena;

(b) Determine the manner by which volcanic eruptions and earthquakes
would occur and the areas that are likely to be affected by the same;

(c) Mitigate hazards of volcanic activities through appropriate and effective
systems of detection, forecast and warning; and

(d) Provide appropriate volcano, earthquake and tsunami products and
services for disaster risk reduction and preparedness and for other interventions in
furtherance of the socio-economic development objectives of the government and
the policies and objectives as provided in this Act.

Sec. 4. PHIVOLCS Organizational Structure. - The PHIVOLCS shall be an
attached agency of the Department of Science and Technology (DOST) for purposes
of coordinating policies and programs and aligning national science and technology
policies and priorities.

It shall be headed by an Executive Director who shall be appointed by the
President upon recommendation by the Secretary of Science and Technology and shall
have the rank and compensation of a Department Undersecretary.

The Executive Director shall be assisted by three (3) Deputy Executive Directors
for Operations Services; Research and Development and Science and Technology
Services; and Administration, Finance and General Services. The Deputy Executive
Directors shall be appointed by the President and shall have the rank and
‘compensation of a Department Assistant Secretary.

Sec. 5. Qualifications. - No person shall be appointed as Executive Director or
Deputy Executive Director of the PHIVOLCS unless such person is a natural-born
citizen and a resident of the Philippines, of good moral character, of proven
competence and integrity, has an advanced degree in geology, geodetic engineering,
volcanology, physics, and other related fields and with at least five (5) years of
competence and expertise in volcanology, geophysics, and or allied sciences:
Provided, That the Executive Director and the three (3) Deputy Executive Directors
shall be career executive officers.


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Sec. 6. PHIVOLCS Modernization Program. - The PHIVOLCS Modernization
Program is hereby established in accordance with the declared policies and objectives
in this Act. The Executive Director of the PHIVOLCS, in coordination with the
Secretaries of Budget and Management and Socioeconomic Planning, shall formulate
the PHIVOLCS Modernization Program and oversee its implementation based on the
modernization objectives and program components as provided in Sections 7 and 8 of
this Act, respectively.

The PHIVOLCS Modernization Program shall indicate among others:

(a) The PHIVOLCS requirements in terms of personnel, equipment and
facilities during the various stages of modernization;

(b) The projects to be undertaken, including the equipment and technology
to be acquired and the facility to be constructed or upgraded; and

(c) The prioritization, implementation schedule and estimated cost of each
of the identified projects.

Sec. 7. Objectives of the PHIVOLCS Modernization Program. - The PHIVOLCS
Modernization Program shall be implemented in accordance with the following
objectives:

(a) To upgrade physical resources and operational techniques through
acquisition and development of state-of-the-art instruments, equipment, facilities
and systems to enhance current capabilities in providing useful, timely, accurate
and reliable volcanic and seismological monitoring, warning and information
services for use in decision-making in disaster preparedness, climate change
adaptation, water resources management, agriculture, transportation, health,
tourism and other sectors;

(b) To enhance research and development capabilities by adopting a
rationalized and integrated approach with focus on the improvement of basic
operations and specialized services;

(©) To integrate disaster risk reduction and management in sustainable
socioeconomic development planning at the national and local levels in
coordination with appropriate government agencies and other entities;


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(d) To strengthen linkages and cooperation at the national level among the
various providers and users of geological, seismological and other services, and to
provide for the appropriate mechanisms for such purpose;

(e) To establish and enhance volcanic and seismological activity monitoring
service centers in strategic areas in the country to broaden the agency base for
the delivery of services in the countryside;

(f) To establish and maintain a technology-based data center consistent
with international standards to make information available to those involved in
disaster risk reduction and management planning, among others, whether from
the government or the private sector;

(g) To enhance public information, education and advocacy on geological
activities, as well as their impacts, risks and vulnerability;

(h) To facilitate the appropriate understanding and delivery of information,
products and services to decision makers, media, other users and the general
public; and

(i) To recruit and retain a competent, professional and committed
workforce through the provision of competitive base pay and other personnel
benefits.

Sec. 8. Components of the PHIVOLCS Modernization Program. - The PHIVOLCS
Modernization Program shall have the following components:

(a) Acquisition or upgrade of instruments, equipment, facilities, systems,
and operational techniques, especially those used for volcano, earthquake and
tsunami monitoring and warning systems: Provided, That a nationwide inventory
of existing government and nongovernment volcanic and seismological
instruments shall be undertaken prior to such acquisition or upgrade: Provided,
further, That the acquisition of new instruments, equipment and systems shall be
harmonized with the phase-out of uneconomical and obsolete instruments,
equipment and systems in the PHIVOLCS inventory;

(b) Sustained development of a network of volcano monitoring
infrastructure for early-warning and swift dissemination of information on observed
volcanic activity;


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(c) Development and adoption of state-of-the-art early warning systems for
volcanic eruption;

(d) Establishment, operation and maintenance of advanced infrastructure
for earthquake and tsunami monitoring and information dissemination throughout
the Philippines;

(e) Establishment, operation and maintenance of monitoring systems for
earthquakes and other seismic disturbances throughout the Philippines, including
seismic activities in areas with moderate and high risk for tsunami or a volcanic
eruption;

(f) Measurement and observation of seismic activities in areas with
buildings and other critical structures, particularly in urban areas and those in
proximity to active faults;

(g) Development and adoption of machine learning capability for earthquake
forecasting, including the automated early-warning and information dissemination
capabilities during significant earthquakes, tsunamis and other seismic activities;

(h) Establishment of permanent PHIVOLCS facilities capable of
accommodating its data receiving and operation centers and research laboratories;

(i) Enhancement of research and development capability through a
rationalized and fully-integrated utilization of established earthquake and volcano
research laboratories, improvement of operations, and the development and
strengthening of specialized services;

(j) Enhancement of mechanisms for sharing public information and
collaboration with government agencies, nongovernment organizations, and other
stakeholders concerned, including the provision of extension services for disaster
planning, preparation, and mitigation, among others;

(k) Development and use of communication strategies to ensure effective
dissemination of relevant information and formulation of appropriate disaster
response and interventions;

(I) Strengthening of the PHIVOLCS Human Resource Development Program
(HRDP), which shall include the following:

(i) The formulation of a new salary scale for PHIVOLCS personnel by
the Department of Budget and Management (DBM) in consonance with

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Republic Act No. 8439, as amended, otherwise known as the “Magna Carta
for Scientists, Engineers, Researchers and other Science and Technology
Personnel in Government” with a corresponding increase in the base pay,
allowances and other benefits;

(ii) An additional incentive to be known as the “Personnel Retention
Incentive”, which shall be provided to qualified PHIVOLCS personnel:
Provided, That the amounts to be provided shall be determined by PHIVOLCS
in consultation with DBM and shall not, in any case, exceed twenty percent
(20%) of the monthly basic salary of the PHILVOLCS personnel concerned;
and

(iii) An education and training program to be developed by the
PHIVOLCS, in coordination with the DOST, the Commission on Higher
Education and higher education institutions, which shall include, but not
limited to, the following:

1. Scholarship programs for qualified undergraduate and
graduate studies in volcanology, seismology, and other related fields;

2. Specialized training programs for qualified individuals
‘engaged in volcanology, seismology, and other related fields; and

3. Human resources upgrading and capability enhancement
with regional and international organizations; and

(iv) Development of regional and international cooperation programs
with relevant regional and international bodies and government institutions
to complement the national effort for modernization; and
(m) Complementation and capacity-building of experts in the field of

volcanology and seismology, including the formulation and implementation of
continuing professional learning programs.

Sec. 9. PHIVOLCS Modernization Fund. - The PHIVOLCS Modernization Fund is
hereby created to be used exclusively for the PHIVOLCS Modernization Program, which
shall be sourced from the following:

(a) The amount of five billion pesos (P5,000,000,000.00) to be taken from
the share of the National Government in the gross income of the Bases Conversion
and Development Authority (BCDA). For two (2) years after the effectivity of this

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Act, the amount of two billion five hundred million pesos (P2,500,000,000.00) per
year shall be released to the PHIVOLCS. The entire amount of five billion pesos
(P5,000,000,000.00), including any interest income thereon, shall be used
exclusively for capital outlay;

(b) Local or foreign donations, grants, gifts, endowments, legacies and
bequests made in support of the purpose and objectives of this Act; and

(©) Local or foreign loans contracted for the purpose of PHIVOLCS
modernization: Provided, That the Secretary of Science and Technology shall be
authorized to enter into loan agreements only after securing prior approval from
the National Economic Development Authority and the Department of Finance.

The PHIVOLCS Modernization Fund shall be administered by the Executive
Director in accordance with existing government budgeting, accounting and auditing
laws, rules and regulations.

Sec. 10. Period of Implementation. — The PHIVOLCS Modernization Program
shall be implemented for an initial period of three (3) years: Provided, That payments
for multi-year contract obligations incurred under this Act may extend beyond this
period: Provided, further, That PHIVOLCS shall continue to modernize and constantly
update its operational capabilities.

Sec. 11. Annual Report. - The Executive Director of the PHIVOLCS shall prepare
an annual report on the status of the implementation of the PHIVOLCS Modernization
Program which shall be submitted, through the Secretary of Science and Technology,
to the President and the Chairpersons of the Committee on Science and Technology
of the Senate and the House of Representatives not later than June 30 of the
succeeding year.

Sec. 12. Procurement of Scientific and Technical Materials, Equipment, and
Services. — The PHIVOLCS shall undertake the procurement of scientific and technical
materials, equipment, and services in the most expeditious manner, and adopt the
appropriate method of procurement based on its identified needs and requirements,
subject to the relevant provisions of Republic Act No. 9184, otherwise known as the
Government Procurement Reform Act” and its Implementing Rules and Regulations
(IRR).


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Sec, 13. Exemption from Duties and Taxes. — Importation and consignments
of scientific and technical materials and equipment by the PHIVOLCS shall be exempt
from all custom duties and taxes.

The donations, grants, gifts, endowments, legacies, and contributions used
actually, directly and exclusively for the PHIVOLCS Modernization Program shall be
exempt from donor's tax and shall be deductible from the gross income of the donor
for income tax purposes in accordance with the National Internal Revenue Code of
1997, as amended.

Sec. 14. Simplification of Import Documentation Requirements. - The
documentary requirements for releasing consignments of equipment sent to the
PHIVOLCS by international collaborative research partners shall be simplified to allow
for the prompt identification and release of the consigned equipment: Provided, That
PHIVOLCS shall, if necessary, lodge to the (BOC) without fee, the required
documentation and declaration for all consigned equipment by or on behalf of
international collaborative research partners within a period to be specified by the
BOC: Provided, further, That imported materials and equipment to be used for
monitoring volcanic and seismological activities shall be immediately released by the
Bureau of Customs (BOC) when there is an ongoing volcanic eruption.

Sec. 15. Collaboration with Local Government Units. - The PHILVOLCS shall
develop mechanisms to enhance collaboration with local government units especially
in the following areas:

(a) Development of linkages with the local decision makers, local news
outlets, disaster and emergency response units, and the local community
Particularly in the formulation of localized disaster risk reduction and management
plans, emergency response procedures and emergency communication strategies;

(b) Dissemination of accurate and up-to-date information before, during and
after volcanic eruptions and other seismic events;

(©) Conduct of outreach programs to increase awareness and understanding
of the nature of the geotectonic hazards, the risks imposed by such hazards to
personal safety and property, and the steps to be undertaken to reduce the such
risks; and


(d) Review and evaluation of local plans, programs and projects, including
the identification of gaps in the established systems for monitoring, early warning,
and forecasting volcanic and other seismic activities.

Sec 16. Appropriations. — The amount necessary to carry out the provisions of
this Act shall be initially charged from the appropriations of PHIVOLCS for the current
fiscal year. Thereafter, the amount needed for the effective implementation of this
‘Act shall be included in the annual General Appropriations Act.

The amount to be appropriated in the annual General Appropriations Act may
be augmented by grants, donations, bequests, or contributions from domestic or
foreign sources: Provided, That the acceptance of grants, donations, bequests, or
contributions from foreign governments shall be subject to the approval of the
President of the Philippines upon the recommendation of the Secretaries of Science
and Technology, Finance, and Foreign Affairs.

Sec. 17. Implementing Rules and Regulations. — Within ninety (90) days from
the effectivity of this Act, the DOST, PHIVOLCS and DBM shall promulgate the
necessary rules and regulations for the effective implementation of this Act.

Sec. 18. Separability Clause. - The provisions of this Act are hereby declared
to be separable. If any provision of this Act shall be held unconstitutional, the
remainder of the Act not otherwise affected thereby shall remain in full force and
effect.

Sec. 19. Repealing Clause. ~ All laws, executive orders, rules and regulations,
or parts thereof, inconsistent herewith are hereby repealed, amended or modified
accordingly.

Sec. 20. Effectivity Clause. — This Act shall take effect within fifteen (15) days
from its publication in at least two (2) national newspapers of general circulation or
in the Official Gazette.

Approved,