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

TWENTIETH CONGRESS
First Regular Session

3113

HOUSE BILL NO.

Introduced by Representative CHING BERNOS

AN ACT
PROVIDING FOR THE SUSTAINABLE MANAGEMENT OF FORESTS AND
FOREST LANDS

EXPLANATORY NOTE

Forests are one of the most fundamental ecological units of the planet. In the
Philippines, it is the lifeblood of our terrestrial ecosystem. It provides oxygen, shelter
for biodiversity, natural botanical, zoological, and other resources, and it is one of
humanity's most important layers of protection from the impacts of climate change.
Forests currently cover roughly 30 percent of the world’s land area but they are
disappearing at a perilous rate. According to the United Nations (UN), we have lost
420 million hectares of our forest cover in the past three decades. The destruction
and collapse of our forests is one of the major crises that all nations must address -
including our own. In 2010, the Philippines had 13.2 million hectares of natural
forest, covering 62% of the country’s land area. In 2021, it lost 37,700 hectares of
natural forest. According to studies by environmental groups and by our own
government, the Philippines is one of the most severely deforested countries in the
tropics. In total, we lose about 123,000 hectares of forest cover every year. At this
rate, there would be no forests left in the country in less than 15 years.

For this reason, the institutionalization of sustainable forest management is
an imperative task that our government must undertake if we wish to protect and
preserve our vast forest ecosystem. Sustainable forest management ensures that our
forests are maintained and managed in a socially just, ecologically sound, and
economically viable manner. The UN defines sustainable forest management as the
stewardship of forests in a way that maintains biodiversity, productivity,
regeneration capacity, vitality, and their potential to meet relevant ecological,


economic, and social functions without damage to other ecosystems. This further
entails that society's demands from our forest resources do not compromise
ecological balance and climate resiliency.

Sustainable forest management requires our government to institutionalize
mechanisms and processes that respond to forest management concerns in terms of
development, regulation, protection, and the mitigation of the impacts of industrial
demand. It must also be included in all government planning, policy making, and
executive actions aimed at addressing climate change as well as providing the
appropriate funding therefor. The Forest Management Bureau must also be
reconstituted and strengthened, not only as managers or administrators of forest
resources, but also as stewards and guardians of the forest ecosystem. Finally,
sustainable forest management must also be responsive to the rights and needs of
marginalized groups such as farmers, indigenous peoples, informal settlers, and
those burdened by poverty.

Deforestation is not a problem to be faced by future generations. This is a
problem that we face right now. But through the swift and decisive action of the
government, with the help of civil society groups and the public at large, we will still
be able to save our forests and our entire nation’s ecological balance.

In light of this duty, the passage of this bill is urgently sought.

‘CHING BERNOS
ID NORTH Party-List


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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘TWENTIETH CONGRESS
First Regular Session

3113

HOUSE BILL NO.

Introduced by Representative CHING BERNOS

AN ACT
PROVIDING FOR THE SUSTAINABLE MANAGEMENT OF FORESTS AND
FOREST LANDS

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

ARTICLE 1
GENERAL PROVISIONS

SECTION 1. Short Title. This Act shall be known as the “Sustainable Forest
Management Act.”

Sec, 2. Declaration of Policy. In consonance with the policy of the State to promote
social justice and general welfare in all phases of national development, to protect
and advance the right of the Filipino people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature, and to conserve and develop the
patrimony of the nation, the State hereby adopts the following policies for the
sustainable management and conservation of forest lands and forest resources found

therein:

a. The specific limits of forest lands, after these have been fixed and demarcated,
shall not be altered, except through and Act of Congress;

b. The sustainable use and conservation of forest lands and forest
resources found therein shall bear social, cultural, ecological, biological, and
economic functions to promote the common good of present and future

generations;


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‘The State shalll prioritize the protection of the ecosystem, as wellas the.
rehabilitation of degraded forest ecosystems through reforestation and
afforestation to mitigate climate change, improve and conserve biodiversity,
enhance ecosystem functions and services, and provide long-term economic
benefits;

Forest lands shall be partitioned and planned into forest management units
(FMUs} based on natural topographic and hydrologic boundaries and
shall consider the watershed continuum approach which adopts

the holistic inter-relationship between the upstream and downstream areas;

The State recognizes the inherent roles and responsibilities of local
communities and indigenous peoples in the protection and ecological treatm

ent of the environment;

The allocation, management, _ protection, conservation, and
development of forest lands and forest resources shalll be done in an integrat
ed, inclusive, developmental, viable, and sustainable manner.

Sec. 3. Objectives. The State shall pursue a policy of balancing the sustainable use

of forest lands and forest resources and sustainable development. It shall be the

objective of the State to:

a.
b.

Provide equitable access to forest lands and forest resources;
Streamline the use of forest lands and forest resources by promoting the use
of sustainable forest management strategies among concerned FMUs and
stakeholders;

Deregulate the harvesting, sale, marketing, and processing of products from
forest plantations and forest farms in forest lands;

Promote Sustainable livelihood and enterprises among marginalized
community tenure holders including indigenous cultural communities and
indigenous peoples (ICC/IPs) who depend on and reside in forest lands;
Strengthen institutional mechanisms to respond to forest management
concerns namely: the development of the forest industry, constant law
enforcement, and management of watersheds;

Create the Sustainable Forest Development Fund (SFDF) as a support
mechanism for funding requirements of forest management initiatives;
Strengthen the role of the Forest Management Bureau (FMB) to be more
responsive and pro-active consistent with the objectives of this Act;


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h. Undertake a multi-stakeholder study, to be led by the FMB, as a prerequisite
to the partitioning of forest lands into FMUS. The study shall determine the
actual forest cover of the country, and shall ensure that the required forest
cover is achieved, sustained, and protected.

Sec. 4. Scope and Coverage. The provisions of this Act shall apply to all forest lands
and all forest resources in lands over which the Philippines has sovereignty and
jurisdiction: Provided, That all forest lands and forest resources found in protected
areas established under the National Integrated Protected Areas System (NIPAS) shail
be sustainably managed and developed consistent with the provision of
Republic Act No.7586, or the “National Integrated Protected Areas System Act of
1992”, as amended by Republic Act No. 11038 or the “Expanded National Integrated
Protected Areas Systems Act of 2018”: Provided, further, That all wildlife resources
and critical habitats found in forest lands, including alienable and disposable lands,
shall be governed by Republic Act’ «No. 9147 or_ the
“Wildlife Resources Conservation and Protection Act”: Provided, furthermore, That
the rights of ICC/IPs to their ancestral forest lands, as provided in Republic Act No.
8371 or the “Indigenous Peoples’ Rights Act of 1997" shall be respected: Provided
finally, That all forest lands under the management or administration of local
government units (LGUs) and other government agencies or instrumentalities shall
be managed in accordance with their duly legislated charters and the principles and
provisions of this Act.

Sec. 5. Sustainable Forest Management Strategies. Consistent with the objectives
of this Act, the following strategies shall be employed:

a. Inclusive and responsive governance of forests and forest lands through
integrated landscape planning and development in watersheds, and the
adoption of community-based approaches by local stakeholders;

b. Promotion and direction for complementary and combined investments of the
public and private sectors for the protection of natural forests, holistic
restoration in watershed landscapes, reforestation and regeneration in
degraded protection forest lands, forest plantations and smallholder forest
farms using combinations of high value indigenous and suitable species;

c. Development of localized and watershed specific framework for the
sustainable use and regulation of ecosystem goods and services that will
enhance biodiversity conservation, establish systems for payment of


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a.

e.

environmental services, improve resilience to the impact of climate change,
and increase the supply of timber, non-timber, biomass, wildlife, food,
medicines among others;

Promotion of landscape-linked and holistic forestry research, education, and
extension on forest ecosystem assets, services accounting and valuation;
Strengthening the professionalization of the forestry service consistent with
Republic Act No. 10690 or “The Forestry Profession Act”.

Sec. 6. Definition of Terms. As used in this Act:

a.

c.

Ancestral forest lands refer to lands and domains defined as such under-
Republic Act No. 8371, or “The Indigenous Peoples Rights Act of 1997";
Biodiversity refers to the variability among living organisms from all sources,
including terrestrial, marine, and other aquatic ecosystems in the ecological
complexes of which they are part of;

Certification refers to a verification process conducted by a third party to
determine whether or not a forest land is managed based on a defined set of
standards;

Climate change refers to a change in climate that can be identifies by changes
in the mean or variability of its properties and that persists for an extended
period whether due to natural variability or as a result of human activity;
Climate change mitigation refers to human intervention to reduce
anthropogenic emissions of greenhouse gases including ozone depleting
substances and their substitutes such as increasing the capacity of carbon
sinks;

Ecosystem refers to a community of living organisms interacting with each
other and with their environment;

Ecosystem goods and services refer to the multitude of material and
nonmaterial provisions and benefits from healthy ecosystems necessary for
human sustenance, well-being, and survival including support processes,
provisioning and environment regulating services, and cultural resource
preservation services;

Ecotourism refers to a form of sustainable tourism within a natural or
cultural heritage area where community participation, protection and
management of natural resources, culture, and indigenous knowledge and

practices, environmental education and ethics, as well as economic benefits


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are pursued for the enrichment of host community and satisfaction of
visitors;

Forest refers to an ecosystem or an assemblage of ecosystems dominated by
trees and other natural vegetation, populated by plants and animal
interacting with one another and their natural environment. It refers to a
land with an area of more than half (0.5) hectare and with tree crown cover
or equivalent stocking level of more than ten percent (10%);

Forest land refers to land of the public domain classified as needed for forest
purposes, including both production and protection. It includes all forest
reserves of the piiblic domain;

Forest management unit (FMU) refers to a clearly defined forest area
assigned for management based on a set of objectives and a long-term
watershed-based management plan;

Forest-based industries refer to industries that are dependent on raw
materials or products derived from forests such as wood, rattan, bamboo,
vines, latex, resins, saps, essences, fruits, flowers, or wild flora and fauna;
Forest Protection Officers refer to officials or employees of the Department of
Environment and Natural Resources, hereinafter referred to as DENR, who
are granted the authority to enforce all forestry and environmental laws and
conduct arrests, seizures, and apprehensions in relation to environmental

law enforcement
Forest resources refer to all products and resources in forest lands or in other
lands devoted for forest purposes including biomass such as plants and
animals, their by-products and derivatives, and non-biomass such as soil,
water, scenery;

Forest restoration refers to a management strategy applied in degraded
primary forests to enhance and accelerate natural processes of a forest
ecosystem;

Forest stand refers to a contiguous community of trees sufficiently uniform
in structure, age, size, class, distribution, spatial arrangement, site quality,
condition or location to distinguish it from adjacent communities;
Indigenous cultural communities / Indigenous peoples refer to a group of
people sharing common bonds of language, customs, traditions, and other
distinctive cultural traits, and who have, since time immemorial occupied,
possessed and utilized a territory;


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8.

Indigenous species refer to species of genotypes that have evolved in the
same area, region or biotope and are adapted to the specific predominant
ecological conditions at the time of establishment;

Multiple-use of land refers to the harmonized sustainable use of land, soil,
water, wildlife, recreation value, grass and timber of forest lands;

Natural forest refers to a forest composed of naturally growing indigenous
trees, not planted by humans, whose structure, composition, and dynamics
have been largely the result of natural succession process;

Non-timber Forest products refer to all biological materials and derivatives
other than timber including fruits, nuts and vegetables, fish and game,
medicinal plants, resins, essences, rays and fibers of tree barks, and other

palms and grasses;
Plantation refers to forest stands established by planting or seeding in the
process of afforestation or reforestation. A stand is composed of either
introduced species, or of any indigenous species, which are of even age and
regular spacing;

Primary forests or old-growth forests refer to forests which have never been
subjected to human disturbance or have been very minimally affected by
hunting, gathering, and tree cutting that their natural structure, function,
and dynamics have not gone any change that exceed the elastic capacity of
the is ecosystem;

Processing plant refers to any establishment or infrastructure that houses
any mechanical set-up, device, machine, or combination of machines used
for the conversion of logs and other forest raw materials into lumber,
fiberboard, pulp, paper, or other finished wood products;

Public forest lands refer to all lands of the public domain that have not been
declared National Parks under Section 5 of Republic Act No. 7586, or the
“National Integrated Protected Areas System Act of 1992", as amended by
Republic Act No. 11038 or the “Expanded National Integrated Protected
Areas System Act of 2018";
otherwise known as the “Philippine Mining Act of 1995"; and those lands not

jineral lands pursuant to Republic Act No. 7942

classified as agricultural lands based on the maps developed by the National
Mapping and so Resource Information Authority;
Reforestation refers to the re-establishment of forest formations that have

been reduced to less than 10% canopy cover due to human activities or

natural perturbations;


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Rehabilitation refers to reforestation or afforestation activities including
mechanical measures such as contouring and terracing;

Secondary forest refers to a former forest that was over-logged and which is
characterized by residuals such as small trees, branches, tops, or other
unmerchantable wood remaining after the clearing, thinning or final felling
of forest stands;

Sustainable forest management refers to the watershed-based management
of forest land and resources to achieve clearly specified objectives as regards
the production of continuous flow of desired forest products and ecosystem
services without undue reduction of its inherent values, biodiversity and
future productivity and without undesirable effects on the physical and
social environment;

Sustainable use refers to the use of forest resources in a way and a rate that
does not lead to its long-term decline, thereby maintaining its potential to
meet the needs and aspirations of present and future generations;

Tenure refers to the guaranteed and peaceful access and use of a specific
forest land and the resources found therein through an agreement, contract,
or grant which cannot be altered or abrogated without due process;
Watershed refers to an area of land drained by a stream or fixed body of
water and its tributaries with a common outlet for surface runoff. A
watershed can be part of a larger landscape that includes connections from
the head waters to the reef, and

Watershed reservation refers to a forest land that has been proclaimed by
the President and by law as such, primarily for water production purposes,
although other compatible uses may be allowed under sustainable and

multiple-use concepts.

ARTICLE IL

SUSTAINABLE USE OF FOREST LANDS AND FOREST RESOURCES

Sec. 7. Administration, Development, Management and Sustainable use of
Forest Lands. The development and sustainable use of forest lands and forest

resources shall be under the full supervision and control of the State. Towards this

end, the State may directly undertake such activities or enter into technical and

financial agreements with qualified persons.


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‘The DENR, through the Forest Management Bureau, hereinafter referred to as FMB,
shall be responsible for the administration, development, management, and
sustainable use of forest lands as defined in this Act. It shall have the authority to
enter into management agreements or issue tenure instruments on behalf of the

Government.

Sec. 8. Forest Land Delineation. The delineation of forest lands as completed by
the DENR shall be adopted. All forest lands categorized as public forest lands shall
not be reclassified, except through an Act of Congress.

Sec. 9. Management of Forest Lands. All forest lands shall be managed for
protection or production purposes.

a. All areas within the forest lands designated or set aside as such shall
constitute protection forest lands. These shall consist of the following:

1. Primary and secondary forests;

2. All areas that are one thousand (1,000) meters above sea level;

3. Limestone forests, forests over ultramafic rocks, peat swamps, beaches,
and freshwater swamps;

4, All existing natural mangroves;

5. All areas with a slope of fifty percent (50%) or more;

6. All areas along the bank of rivers and streams, and the shores of the
seas and lakes throughout the entire length and within a zone of three
(3) meters in urban areas, twenty (20) meters in agricultural areas and
forty (40) meters in forest areas, along their margins which are subject
to the easement of public use; and

7. All watersheds that have been proclaimed by the President or by law as
such, primarily for water production purposes or for other compatible
uses under sustainable and multiple-use management concepts.

b. All public forest lands not classified as protection forest lands pursuant to
this Section shall constitute the production forest lands. These lands shall
be devoted for the production of timber and non-timber forest products to
supply the domestic forest resource demand of the country and facilitate
international trade of forest resources.

All extractive activities, such as harvesting, gathering, and collection of forest

resources except non-timber forest products and scientific and educational use as


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permitted by the FMB, are prohibited within forest lands for protection purpose:
Provided, That the sustainable traditional resource rights of ICCs/IPs as defined
under the Republic Act No. 8371, or “The Indigenous Peoples’ Rights Act of 1997”,
shall be respected: Provided, further: That such traditional activities are not
destructive of the forest, and that these activities shall promote the protection of the

forest.

Establishment of built-up facilities are also prohibited within protection forest lands,
except for special use consistent with sustainable forest management strategies,

Only indigenous species shall be planted or introduced within protection forest

lands.

Sec. 10. Forest Management Units. For the purpose of operations and
management, all public forests or timber lands shall be assigned and registered as
Forest Management Units (FMUs) with the DENR: Provided, that all areas under an
existing and valid tenure agreement or management with the DENR before the
passage of this Act shall be considered as FMUs.

Each FMU shall be managed for protection or production purposes. Protection FMUs
shall have the primary function of protecting life support systems to regulate water
resources, prevent flooding, control erosion, prevent seawater intrusion, maintain
soil fertility, and conserve plant and wildlife biodiversity and their
ecosystem. Production FMUs shall have the primary function of producing forest
products, food, energy, or fresh water.

Sec, 11. Managers of FMUS. To ensure effective management of forest lands, only
qualified persons shall be designated managers of FMUs. An FMU manager may be
a natural or juridical person and includes local and ICC/IPs’ households, civil society
organizations, business organizations, forest land use tenure holders, and national
and local government units subject _to the requirements to be provided in
the implementing rules and regulations of this Act.

Sec. 12, FMU Development and Management Planning. Every FMU shall have a
management plan formulated by the FMU Manager, reviewed and concurred by a
Registered Professional Forester, and approved by the FMB.

In case the FMU holder is an individual, a member of an ICC/IP, or a member of civil
society, the FMB shall provide assistance in the preparation and formulation of a


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management plan. In designating FMUs within a watershed, and in awarding the
appropriate tenurial instruments, priority shall be given to indigenous peoples.

Sec. 13. Sustainable Management of Mangrove Resources. Mangrove species
planted within production forest lands can be harvested, gathered or collected,
taking into consideration the basic forestry policies and strategies provided for in
this Act. The harvesting, gathering, collection of mangrove species shall be upon the
authority of FMB.

Sec. 14, Mined-Out Areas and Abandoned Fishpond Areas. Forest lands that are
considered as either mined-out areas or abandoned fishpond lease areas shall be
under the management and administration of the FMB.

Sec, 15, Sustainable Use of Forest Resources. The harvesting, gathering, and
collection of all planted forest resources within production forest lands, including its
by-products and derivatives, shall not require any clearance from the DENR:
Provided, That the volume of harvested products is consistent with the approved
management plan: Provided, further, That the DENR shall establish a National Forest
Stock Monitoring System (NFSMS) to ensure the sustainable use of the forest
resources and strengthen the timber legality assurance system for forest products:
Provided, furthermore, That the FMB shall set up a monitoring mechanism that will
Provided, finally, That any request
for clearance for domestic transport of forest resources submitted to the DENR shall

include members of the local consultative bodies:

be acted upon within seven (7) days from the date of its submission with the proper
office. If no action has been taken by the DENR after the lapse of seven (7) days, the
clearance for transport shall be deemed approved.

The harvesting, gathering, collection, ancl transport of non-timber forest products
within production forest lands shall be exempt from any clearance from the

government.

All timber and non-timber forest products planted within private lands shall belong
to the owner of the land who shall have the right to harvest, gather, and collect the
same without any clearance from the DENR or other concerned government

institutions.

Sec. 16, Regulation and Sustainable Use of Forest Resources within Ancestral
Forest Lands. The rights of the indigenous cultural communities or indigenous

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peoples over their ancestral forest lands shall be respected: Provided, That the
management of forest resources within those lands shall be regulated by the DENR
as provided for by laws, rules, and regulations.

ARTICLE II
FOREST-BASED INDUSTRIES

Sec. 17. Development of an Open and Competitive Market for Forest Resources.
To meet the demands for forest goods and services, the DENR shall promote and
rationalize the establishment, operations, and development of forest-based
industries. The DENR shall institute measures to develop an open and competitive
market for forest products including the liberalization of forest products harvesting,
transport, and marketing.

Sec. 18. Export of Certified Forest Products. No person shall sell or offer for sale
any forest resources in the international market without complying with the
certification system established by the Government. Failure to adhere to the
established standards, or any act of falsification Shall be sufficient cause for the
cancellation of export licenses and other permits authorizing the manufacture or sale
of such resources.

Sec. 19. Regulation of Forest-Based Industries. All processing plants using forest
resources as raw materials shall be subject to existing regulations prescribed by law,
such the Environmental Impact Assessment (EIA) System: Provided, that these
processing plants _ are registered with the Department of Trade and Industry and
have been issued the required clearance from the concerned LGU.

Sec. 20. Support for Private Investments and Economic Contribution. Forest-
based industries shall be given appropriate incentives in order to encourage global
competitiveness and enable them to support demand for wood and other products,
and enhance their economic contribution to the country. Agroforestry economic
zones may be established in order to attract local and foreign investments.

Sec. 21. Community-Based Forest Enterprises. Economic activities, practices and
forest-based enterprises of local communities and ICCs/IPs that promote the
sustainable use of forest resources shall be supported and promoted to address food

security and improve their quality of life.

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ARTICLE IV
ENABLING CONDITIONS FOR SUSTAINABLE FOREST MANAGEMENT

Sec. 22. Forest Land Use and Tenure Instruments. The DENR may undertake the
development and sustainable use of forest lands and forest resources found therein
in cooperation with qualified persons, whether natural or juridical, through tenure
instruments. The order of priority in the provision of land use rights shall be as

follows:

a. Duly recognized indigenous peoples, organizations, and households in the
case of FMUs within ancestral forest lands;

b. Holders of valid and existing forestry agreements with DENR and FMB;

¢. Investors on forest lands with free and prior informed consent (FPIC) with
indigenous peoples; and

4d. Investors on public forest lands that are not under any agreement with the
DENR and other persons.

Any person who is party to any of the agreements mentioned in this section shall not
be allowed to transfer or convey rights vested by the agreements within five (5) years
from the issuance of the agreement. Thereafter, the person shall be able to transfer,
or convey the rights of interests therein subject to a written authority from the
Secretary or duly authorized representative: Provided, That the transferor has
complied with the terms and conditions of the agreement: Provided, further, That the
transferee shall assume the obligations of the transferor.

All parcels of public forest lands that are not covered by any management agreement
or tenure instrument shall be converted to FMUS.

Sec. 23. Forest Management Agreement. The DENR and a qualified person,
whether natural or juridical, may enter into a forest management agreement for the
development, sustainable use, and management of forest lands and forest resources
found therein. The forest management agreement shall be for twenty-five (25) years
and may be extended for another twenty-five (25) years.

Sec. 24. Scope of Forest Management Agreement. A forest management
agreement may be entered into for the following purposes:

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Agroforestry plantations, in accordance with the standards of the DENR for
forest plantations development;

Forest plantation development;

Ecotourism development;

Forest restoration; and

Special uses for forest lands.

A forest management agreement may be entered into for a single purpose or a

combination of any of the abovementioned purposes.

Sec. 25. Special Uses of Forest Lands. Special uses of forest lands shall include

the following:

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Establishment of forest park;
Dry dock site;

Industrial processing site;
Herbal or medicinal plantation;
Fish drying site;
Communication station site;
Public landing site or airstrip;
Log pond or log depot;

Lumber yard;

Motor pool site;

Power station site;
‘Transmission line site;
Right-of-Way;

Farm-to-Market roads;

Government facility sit
Water reservoir; and

Renewable energy projects.

Sec. 26. Qualified Persons. The following persons are qualified to enter into a

Forest Management Agreement with the State:

a
b.

Filipino citizens;
Local and ICC/IP’s households, civil society organizations, small and

medium enterprises, and, and people’s organizations;

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Corporations or associations at least sixty percent (60%) of whose capital is
owned by Filipinos

Local government units, when the purpose of the Agreement is for public use
or the establishment of government centers and facilities; or

Other national government agencies or government-owned or -controlled
corporations, when the purpose of the Forest Management Agreement is of
national interest, such as the construction of electric transmission or
distribution lines, or water reservoirs.

Sec. 27. Benefit Sharing. The following schemes shall be observed by the parties to
a Forest Management Agreement in relation to the sharing of benefits derived from

the agreement:

c.

For forest plantations and forest plantations with processing plants, the
sharing of outputs shall be based on the total gross output of the plantation
harvests. Said sharing shall be done in a manner advantageous to the
national interest without prejudice for incentives that may be prescribed by
the DENR.

For ecotourism purposes, the person who enters into a forest management
agreement with the State Shall pay an annual user's fee equivalent to five
percent (5%) zonal value per square meter or a fraction thereof of the nearest
commercial area.

Non-income generating government facilities such as public-school sites,
public hospitals or clinics, government center or offices, roads, farm-to-
market access roads, and public buildings are exempt from paying any fee
or other pecuniary obligation with the State: Provided, That the use of these
establishments or infrastructures shall not be subject to privatization.

Sec. 28. Forestry Research, Education, Training, and Extension. The Forestry
Development Center (FDC) of the University of the Philippines Los Bafios Research,

in collaboration with schools, universities, and colleges (SUCs) as well as other

stakeholders, shall undertake forest policy research and technology development in

support technology development in support of sustainable forest management.

‘The DENR, the Department of Science and Technology, the Commission on Higher

Education, and universities shall, within one (1) year from the passage of this Act,

prepare a comprehensive sustainable national forestry and environmental research

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and technology development and transfer program in furtherance of sustainable
forest management, which shall be implemented, monitored, and reviewed in
accordance with existing research management systems.

Continuing professional development shall be promoted in universities and training
institutions on forestry and natural resources management subject to the
Professional Regulation Commission’s {PRC) accreditation system. Forestry
education in the Philippines shall be rationalized to ensure the quality of formal
forestry education and national and regional centers of development and excellence
in forestry and environmental education shall be established, supported and
sustained to develop high quality human resources and promote global
competitiveness. The Commission on Higher Education shall include forest ecology
and environment courses in general education curricula. The DENR shall formulate
a sustained nationwide public information and advocacy campaign for forests and
natural resources conservation, sustainable forest management, and Climate
change.

Sec, 29. The Sustainable Forest Development Fund. There is hereby established
a trust fund to be known as the Sustainable Forest Development Fund (SFDF) to be
utilized as concessional financing for forest development projects proposed by the
managers of FMUs. The Fund shall be administered by a government financial

institution as a trust account.

‘The preferred government financing institution (GFl), together with the DENR, shall
invest at most 75% of the net interest income from loans to forest development-
support facilities including road networks, seedling nurseries, water supply systems,
and research facilities subject to recommendation by the FMB.

‘The SFDF may be augmented by grants, donations, payment for ecosystem services,

and endowment from various sources local and international sources.

In addition, at least seventy percent (70%) of forest charges and government share
collected, including proceeds from the sale of confiscated forest resources,
machinery, equipment, and tools, fines, and penalties shall be set aside for the SFDF.

Disbursements from the fund shall be made solely for the protection, maintenance,
development of the forest area, and duly approved projects endorsed by the forest
management units, in the amounts authorized by the DENR subject to existing

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accounting, budgeting and auditing rules and regulations: Provided, That the fund
shall not be used to cover personal services expenditures

Sec. 30. Importation and State. Forest resources may be imported into the country,
subject to existing laws, rules, and regulations. All imported forest resources shall
comply with the Philippine National Standards to be developed by the Department of
Trade and Industry in coordination with the Forest Products Research and
Development Institute and the DENR. Compliance with these standards shall be a
precondition for the sale or disposition of these products in the Philippines.

ARTICLE V
ORGANIZATIONS AND GOVERNANCE

Sec. 31. Creation of the Position of Undersecretary for Forestry. There is hereby
created in the DENR the position of the Undersecretary for Forestry who shall
perform the following functions:

a. Oversee the provision of technical, marketing, financial, tenurial and

infrastructure support to persons and entities engaged in FMU
management;

b. _ Ensure watershed-based planning and monitoring processes are observed
in forestry-related developments;

c. Facilitate institutional linkages and convergence initiatives among forestry
stakeholders in support of effective development and management of forest
lands consistent with its protection and production uses;

d. Provide scientific information-based policy recommendations in aide of
sustainable forest management; and

e. Promote cost-effectiveness of forestry investments among local and
international investors and donors in line with sustainable forest

management.

The President of the Republic of the Philippines shall appoint the Undersecretary
whose office's structure and Staffing shall be recommended by the DENR Secretary
subject to existing laws, rules, and regulations.

Sec. 32. Reconstitution of the Forest Management Bureau. The Forest
Management Bureau is hereby reconstituted as a line bureau under the DENR. It
shall be responsible for the administration, sustainable management, development,

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and conservation of forest lands and forest resources of the country, with functions
specifically as follows:

a. Implement all policies, planet, programs, projects and activities concerning
forest lands with provision for effective feedback and reporting mechanisms;

b. Ensure the provision of technical, marketing, financial, tenurial and
infrastructure support to persons and entities engaged in FMU management;

c. Enforce watershed-based planning approaches in all forestland development
and management endeavors;

d. Encourage the participation of forestry stakeholders in all forestry-related
consultative processes;

e. Develop and implement an effective geographical information system in aide

of forestry planning, monitoring and policy formulation;

Monitor and evaluate the physical, environmental, and socio-economic

outcomes in the management of all FMUs; and

g. Formulate and publish periodic reports informing stakeholders of the status
of the Philippine Forest lands using both qualitative and quantitative
methods.

Sec. 33. Composition of the Forest Management Bureau. As a line bureau, the
Forest Management Bureau shall be headed by a Director and assisted by two (2)
Assistant Directors who shall supervise the administrative and technical services of
the Bureau respectively. There shall be an FMB Regional Director in each
administrative region with corresponding offices and positions. Consistent with
Republic Act No. 10690, or “The Forestry Profession Act”, only registered professional
foresters (RPF) shall be appointed to the aforementioned positions.

Sec. 34. Assistance of Law Enforcement Agencies. Concerned LGUs, the
Department of Interior and Local Government, and the DENR may call upon law
enforcement agencies and instrumentalities of the Government such as the
Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), the
Philippine Coast Guard (PCB), and the National Bureau of Investigation (NBI) for the
enforcement of environmental laws, executive orders, and their implementing rules

and regulations.

Sec. 35. Local Government Participation. Enabling mechanisms shall be
developed to enhance the participation of the LGUs in watershed management

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planning, sustainable use, conservation, and protection of forest resources within
their territorial jurisdiction, including forest resources which have been placed by

law under the administration and management of other government agencies.

LGUs with forest lands within their jurisdiction shall align their CLUPs, local
development plans, disaster risk reduction management plans and other required
plans according to the objectives specified herein and in the protected area
management plans.

Sec. 36. Other Government Agencies. Forest lands or portions thereof, which have
been placed under the administration and management of other government
agencies, shall remain as such: Provided, That the DENR shall oversee the
administration and management of these areas based on the policies, strategies, and
programs mandated under this Act: Provided, further, That the concerned agencies
shall submit an annual accomplishment report to the DENR.

Sec. 37. Multi-Sectoral Consultative Bodies in Relation to Natural Resources
Governance. Pursuant to this Act, a technical and multi-sectoral consultative body
involving all direct stakeholders concerned within a watershed shall be convened by
the DENR specifically for each FMU and cluster of FMUS as appropriate, and shall
be consulted at least once a year to review and make recommendations pertaining to
watershed-based management related policies at the local and regional level.

Sec, 38. Function of Multi-Sectoral Consultative Bodies. The body shall be
responsible for the over-all policy direction in the management of the forest lands
and forest resources found within their respective jurisdictions in accordance with
the provision of this Act. Specifically, it shall (a) review and recommend
implementation of programs and projects, (b) perform oversight functions on matters
pertaining to environment and natural resources, and (c) participate in the review
and recommend relevant policies for the protection, conservation and restoration
efforts within the watershed in ensuring significant contribution of the forestry sector
to national economy, ecological sustainability, and
sustainable development closely adhering to the principles and priority programs
of the Government. Said body may also facilitate the initiation of the LGUs’
participation in monitoring the transfer and implementation of devolved functions to
the LGUs.

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Sec. 39. Power and Water Utility Service Providers. Forest lands or
portions thereof, which have been placed by law or agreement under the
administration and management of government and private power and water utility
service providers, shall be included in the partition in g of forest lands into
appropriate categories consistent with the purpose of the assigned forest land, and
shall remain under the administration and management of the said utility service
providers concerned: Provided, That the DENR shall exercise oversight power on the
planning, management, sustainable use, and assessment of all forest resources in

these areas.

Sec. 40. Governance Support Mechanism. The following mechanisms shall be
developed, established, and used for the effective implementation of the sustainable
forest management program:

a. The principles and practices of transparency, accountability, and
participatory decision-making, in transactions, decision, and actions
affecting forestry, in all levels, and the policy of streamlining,
decentralization, devolution, and deregulation shall be adopted, promoted,
and institutionalized in the DENR;

b. Forest Jand use plans Shall be integrated with the comprehensive land use
plans of local government units;

c. Networks and linkages with local and international institutions, civil society
organizations, local government units and industries involved in the
promotion and practice of sustainable forest management shall be
strengthened;

d. The DENR shall prescribe appropriate fees and government shares for
different kinds of sustainable use, exploitation, occupation, possession, or
activities within forest lands, as well as the corresponding administrative
fees for permits, agreements, and other services;

a. e. The DENR shall have the authority to impose other fees for payment for
ecosystem services and forest protection, management, reforestation, and
development. In addition, the DENR may waive fees and charges on
government activities within forest lands that support public utility, social
welfare, national security, or national interest;

e. The DENR shall undertake the monitoring and control of forest
management and sustainable use through third-party audit and
certification. A National Forest Certification System shall be established

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which will outline the policy, rules, procedures, and management for
implementing forest management certification and chain-of-custody
certification in promoting timber legality assurance system in the the DENR
shall develop pertinent guidelines, in coordination with all stakeholders, for
the implementation of this provision subsequent to the effectivity of this
Act;

{. The DENR shall establish a forest management information System which
shall consist of comprehensive up-to-date information on the physical,
social, financial, economic, biological, and environmental components of
the country’s forest lands and forest resources. It shall include a continuous
monitoring system to track the sustainable use and movement or transfer
of forest-based goods and services, the changes in the state of forest
resources and ecosystem services, and its drivers. The system shall likewise
include a ground- based validation system for assessing progress towards
sustainable forest management;

g It shall be the priority of the State to ensure that government employees
involved in the implementation of the sustainable forest management law
are properly trained, sufficiently equipped, adequately compensated, and
given ample opportunities to participate in its implementation.

ARTICLE VI
OFFENSES AND PENALTIES

Sec. 41. Harvesting, Gathering, Collection, or Possession of Forest Resources
from Protection Forest Lands. Any person who shall harvest, gather, collect, or
possess any forest resource from protection forest lands shall be punished with
imprisonment ranging from six (6) years and one (I) day to twelve (12) years and one
(1) day or a fine equivalent to ten (10) times the value of the said forest resource. The
Forest Protection Officers Shall have the authority to estimate the present market
value of the forest resources subject of the illegal harvest, gathering, collection or
possession based on the guidelines promulgated by the DENR.

In the case of partnerships, associations, or corporations, the president, managing
partner or general manager shall be held liable.

‘An alien who commits these prohibited acts shall be deported after payment of the
fine imposed by the Bureau of Immigration without deportation proceedings.

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Sec. 42. Illegal Harvesting, Gathering, Collection, or Possession of Forest
Resources as an Act of Economic Sabotage. Any of the acts enumerated in the
preceding section shall be considered as an economic sabotage when committed by:

a. At least two (2) or more persons through an organized and systematic
manner; and

b. Any person, when the amount of forest resources harvested, gathered,
collected, or possessed amounts to at least One million pesos
(P1,000,000.00).

The penalty of imprisonment for twenty (20) years and one (1) day up to forty (40)
years shall be imposed.

Sec. 43. Grazing Livestock in Forest Lands Without Authority. Any person found
to have caused the grazing of livestock in forest lands without authority from the
DENR Shall be punished with imprisonment of two (2) years, four (4) months, and
one (1) day up to four (4) years and two (2) months. The livestock shall be confiscated
in favor of the local government unit (LGU) concerned.

Sec. 44, Unlawful Occupation of Forest Lands. Except for ICC/IPs occupying
ancestral forest lands consistent with their CADC or CADT and the provisions of
Republic Act No. 8371 or “The Indigenous Peoples Rights Act”, any person who,
without authority from the DENR, takes possession of or occupies any parcel of forest
land shall be punished with a penalty of imprisonment of six (6) years and one (1)
day up to twelve (12) years and a fine of not less than one hundred thousand pesos
(P 100,000.00), but not more than five hundred thousand pesos (P 500,000.00) and
forced eviction from the area.

Sec. 45. Destruction of Forest Lands. Any person who shall destroy or cause
destruction within protection, ancestral, or public forest lands or assist, aids, or
abets another person to do so, shall be punished with a penalty of imprisonment of
six (6) years and one (1) day up to twelve (12) years, and a fine of not less than One
hundred thousand pesos (P 100,000.00,) but not more than Five million pesos (P
5,000,000.00).

Sec. 46. Unlawful Operations of Sawmills, Wood Processing Plants, and Forest-
Based Industries. Any person operating a sawmill, wood processing plant, and
forest-based industry without any authority from the DENR shall be punished with

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a penalty of imprisonment for six (6) years and one (1) day up to twelve (12) years,
and a fine of not less than five million pesos (P 5,000,000.00).

If the offender is a public official or employee, the accessory penalty of permanent
disqualification shall be imposed, including forfeiture of all government benefits.

All forest resources, machinery, equipment, and tools pertinent to the operations of
the abovementioned establishments shall be confiscated in favor of the Government.

Sec. 47. Prohibition on the Issuance of Land Titles or Tax Declaration on Forest
Lands, All land titles and tax declaration issued over forest lands shall be deemed
void ab initio. Any person who shalll issue land titles and tax declarations over any
forest land or a parcel thereof shall be punished with imprisonment of six (6) years
and one (1) day up to twelve (12) years, with a fine of not less than one hundred
thousand pesos (P 100,000.00), but not more than five hundred thousand pesos
(P500,000.00). The accessory penalty of disqualification shall be imposed for a period
of twelve (12) years and one (1) day.

Sec. 48. Non-Payment and Non-Remittance of Forestry Fees and Charges. Any
person who fails to pay the amount due and payable as forestry fees or charges to
the government or remit the same to the proper authorities within the prescribed
period shall be punished with a penalty of imprisonment for a period of six (6) years
and one (1) day up to twelve (12) years, with a fine of not less than One hundred
thousand pesos (P100,000.00), but not more than Five hundred thousand pesos
(P500,000.00).

Sec. 49. Non-Establishment of Tree Parks and Green Spaces. Every LGU shall
establish and maintain tree parks and green spaces pursuant to their comprehensive
land use plans. Allocations for the establishment and maintenance of the same shall

form part of the local government unit's annual budget.

Every owner of land subdivided into residential, commercial, or industrial lots shall
reserve, establish and maintain at least thirty percent (30%) of the total land area of
the subdivision, exclusive of roads, service streets and alleys as green space for tree
parks.

No subdivision plan shall be approved by the Housing and Land Use Regulatory
Board unless at least thirty percent (30%) of the total area of the subdivision has

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been reserved as green space. The owner must develop the green space within three
(3) years from the approval of the subdivision plan.

Any LGU or owner of a parcel of land subdivided into residential, commercial, or
industrial lots who fails to establish green spaces or tree parks as provided in the
preceding paragraphs shall be penalized with a fine of not less than five hundred
thousand pesos (P500,000.00), but not more than one million pesos (P1,000,000.00).

‘Sec. 50. Illegal Conversion of Tree Parks and Green Spaces. Any person who shall
convert or cause to convert any tree park or green space for a
purpose inconsistent with that which is provided for by this Act shall be
punished with a penalty of imprisonment for six (6) years and one (1) day up to
twelve (12) years, or a fine not less than Five hundred thousand pesos
(P500,000.00), but not more than One million pesos (P1,000,000.00).

If the offender is a public official or employee, the accessory penalty of
disqualification shall be imposed for a period of twelve (12) years and one (1) day. If
the offender is an official or an employee of the DENR, the accessory penalty of
permanent disqualification shall be imposed.

Sec. 51. Arrest and Detention. If the apprehension of an offender was conducted
in areas far from the place where persons authorized to conduct inquest proceedings
are located, the delivery of the said person to the proper judicial authorities shall be
done within a reasonable time period, taking into consideration the ordinary travel
time from the place of arrest to the place of delivery.

In order to facilitate the filing of appropriate charges against arrested persons for
violations of this Act, the Department of Justice shall designate in every city and
province a special prosecutor who shalll be responsible for such filing.

Sec. 52. Public Auction of Forest Resources. If the confiscated forest resources
are in danger of deteriorating, the DENR may order that the same be sold at public
auction even before the termination of the judicial proceedings, and the proceeds
thereof shall be kept in trust until such time that the judicial proceedings are
completed and judgment is made as to the disposition of such forest resources.

Sec. 53. Authority of Forest Protection Officers. In the performance of their
official duties, forest protection officers or other public officials or employees
authorized by the DENR shall have free access into forest lands or any parcel thereof.

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‘They are also authorized to search the exterior and interior of all vehicles suspected
to contain illegally harvested, collected, or gathered forest resources: Provided, That
the search is done in the presence of the apprehended persons and two (2) public
local officials.

Finally, forest protection officers are authorized to administer oaths, and take
acknowledgments on official matters connected to the implementation of this Act and

its rules and regulations.
ARTICLE VI
ADMINISTRATIVE PROVISIONS

Sec. 54. Administrative Authority of DENR Secretary or the Duly Authorized
Representative to Order Confiscation. In all cases of violations of this Act or other
forest laws, rules and regulations, the DENR Secretary or a duly authorized
representative may order the confiscation of forest resources illegally harvested,
collected, gathered, possessed and those that are abandoned. This authority shall
extend to all conveyances used either on land, water or air as well as machinery,
equipment, implements, and tools used in the commission of the offense, and to
dispose of the same in accordance with pertinent laws, rules, and regulations.

Sec. 55. Administrative Authority of DENR Secretary to Impose Fines. The
DENR Secretary or a duly authorized representative, after the consultation with the
forest-based industries affected, is hereby authorized to set the number of fines for
the offenses described in this Act and shall publish the schedule of fines in a national
newspaper of general circulation.

Sec. 56. Fines Escalation Clause. The fines herein prescribed shall be increased by
at least ten percent (10%) every three (3) years to compensate for inflation and to

enhance the deterrent purpose of such fines.

Sec. 57. Informant’s Incentive. Twenty percent (20%) of the value of confiscated
materials shall be used as incentives to informants, including forest management
councils and forest management boards to be placed in the SFDF. They shall also be
entitled to free legal assistance should cases be filed against them in the performance
of official duties.

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Sec. 58. Suits and Strategic Legal Action Against Public Participation and the
Enforcement of this Act.

A legal action filed to harass, vex, exert undue pressure, or stifle any legal
recourse that any person, institution, or the government has taken or may
take in the enforcement of this Act, or to protect the environment, or
uphold the environmental rights of persons, shall be treated as a strategic
legal action against public participation and shall be governed by this
Section.

A suit and a strategic legal action against public participation may be
interposed as a defense by a person involved in the enforcement of
environmental laws, protection of the environment, or assertion of
environmental rights. The suit or strategic legal action shall be supported
by documents, affidavits, papers, and other evidence; and, if _ it contains
a counterclaim, must be accompanied by a prayer for damages, attorney's
fees and costs of suit,

The court shall direct the plaintiff or adverse party to file an opposition to the suit or

strategic legal action asserting why the suit is not a not a valid defense within a non-

extensible period of five (5) days from receipt of notice that an answer has been filed.

The suit or strategic legal action shall be set for hearing by the court after issuance

of the order to file an opposition within fifteen (15) days from filing of the comment

or the lapse of the period.

The hearing on the suit or strategic legal action shall be summary in
nature. The parties must submit all available evidence in support of their
respective positions. The party seeking the dismissal of the case must prove
by substantial evidence that the enforcement of this Act is a legitimate
action for the protection, preservation and rehabilitation of the
environment. The Party filing the action assailed as a strategic legal action
against public participation and enforcement of this Act shall prove by
preponderance of evidence that the action is a valid claim.

The affirmative defense of a Strategic legal action against public
participation shall be resolved within thirty (30) days after the summary
hearing. If the court dismisses the action, the court may award damages,

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attorney's fees and costs of suit under a counterclaim if such has been
filed.

If the court rejects the suit or strategic legal action, the evidence adduced during the
summary hearing shall be treated as evidence of the parties on the merits of the case.
The action shall proceed in accordance with the Rules of Court.

Sec. 59. Citizen’s Suit. Any citizen may file an appropriate civil, criminal or
administrative action with the proper court against:

a. Any person who violates or fails to comply with the provisions of this Act or
its implementing rules and regulations;

b. The DENR or other implementing agencies with respect to orders, rules, and
regulations that are in contravention to this Act; and

c. Any public officer who willfully or grossly neglects the performance of an act
specifically enjoined as a duty by this Act or rules and regulations issued to
implement it, or abuses the authority vested upon such public officer, or in
any manner improperly performs the duties under this law or its
implementing rules and regulations.

However, no suit can be filed until after a notice of violation is sent to the alleged
offender within thirty (30) days starting from the date of the occurrence of the
violation.

Sec. 60. Implementing Rules and Regulations. Within six (6) months from the
effectivity of this Act, the DENR, in consultation with other government agencies and
relevant stakeholders shall prepare the necessary rules and regulations to implement
this Act.

Sec. 61. Appropriations. The DENR shall immediately include in the Department's
program the implementation of this Act, the funding of which shall be included in
the annual General Appropriations Act.

For LGUS, the funding requirements shall be taken from their internal revenue
allotment (IRA) and other sources of income derived from the shares from the

different modes of agreement.

Sec. 62. Transitory Provision. Upon the approval of this Act, all existing tenure
instruments, agreements or contracts, permits, and the like, shall be reviewed by the

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DENR and shall not be renewed upon their expiration unless their terms are
consistent with the provisions of this Act.

Sec. 63. Separability Clause. If any section or provision of this Act is held
unconstitutional or invalid, the remaining sections or provisions with the provisions
not affected thereby shall continue to be in full force and effect.

Sec. 64. Repealing Clause. All laws, decrees, executive orders, rules and
regulations, issuance or parts thereof inconsistent with the pFoVisions of this Act
are hereby repealed or modified accordingly.

Sec, 65. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,

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