Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NOI558

Introduced by
REPRESENTATIVES GAVINI “APOL” C. PANCHO,
JOEY S. SALCEDA and FERDINAND MARTIN G.

EXPLANATORY NOTE

Rainwater Harvesting (RWH) technology presents a significant solution to water
shortages and ground water depletion during the dry season, as well as in mitigating the
effects of excessive rains during the wet season.

RWH refers to methods employed to collect rainwater through catchment systems,
and then divert them through gutters to a storage tank to provide water for specific
applications. At present, harvested rainwater is used mainly to supply the demand tor
non-potable water but through adequate research on existing treatment techniques, it is
possible for rainwater harvesting technology to supplement public need for potable
applications. Potable applications include drinking, cooking, bathing, and dishwashing.
Non-potable applications include toilet flushing, fire suppression, household cleaning,
gardening, taundry washing, pooi/pond filling, and vehicle washing.

In comparison with the current public water system, RWH allows water to be
supplied at the point of consumption thus, owners are in full control of the technology.
Moreover, of all the sources of water, rainwater is among the cleanest. Its quality only
diminishes depending on the quality of the atmosphere, the catchment and conveyance
systems, and storage tank. RWH technology therefore breaks the consumer's reliance
on a water supplier, and additionally, can also significantly reduce storm drainage load
and excessive flooding.

Jn terms of environmental impacts, as compared to other sources, rainwater
harvesting technology pose lesser or no damage at all for the environment since existing
structures such as domestic houses will only be retrofitted. Its only disadvantage relies
mainly on the randomness of the rainfall pattern thus the demand of the user will not
always be met.

However, RWH technology is not that popular in Philippine context. To be able to
promote the technology, we need to identify and supply the users with the advantages of
the system over the current “lined system” of water distribution like the ease in terms of
installation, operation, and maintenance with readily available construction materials.

‘Moreover, since commercial and industrial establishments pose as the primary
consumers of water derived from our natural water systems, they need to be encouraged
to install rainwater catchment facilities to reduce water extraction and save the remaining
ground water for the next generation.


In this direction, this Bill seeks to provide an incentive scheme to encourage
building owners and developers to embrace RWH technology in their businesses.
Primary to this incentive scheme will be the provision of tax incentives in the form of
appropriate tax deductions, tax credits and tax reductions.

With urgency to encourage a collective action to preserve our natural environment
and support sustainable development in our cities a1 lunicipalities, the immediate

JOEY'S. SALCEDA
Representative, 2” District of Albay

FERDINAND MARTIN G. ROMUALDEZ
Representative, 1™ District of Leyte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3558

Introduced by
REPRESENTATIVES GAVINI “APOL” C. PANCHO,
JOEY S. SALCEDA and FERDINAND MARTIN G. ROMUALDEZ

AN ACT GRANTING INCENTIVES FOR COMMERCIAL AND INDUSTRIAL
ESTABLISHMENTS, AND DEVELOPERS WHO WILL INCORPORATE RAINWATER
‘HARVESTING TECHNOLOGY IN THEIR BUSINESSES, AND FOR OTHER
PURPOSES THEREOF

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

SECTION 1. Short Title. — This Act shall be known as “Rainwater Harvesting
Incentive Act of 2019".

SECTION 2. Declaration of Policy.

(a) It is hereby declared the policy of the State to protect and promote the nghts
of the people to health, a balanced and healthful ecology and instill health consciousness
among them.

(b) The State shall pursue a policy of sustainable development, balancing
progress, the protection of the environment, and the health and welfare of its people.

(c) The State shall promote a comprehensive system of environmental planning
which seeks to conserve, rehabilitative and develop the physical environment and natural
resources of the nation that translates into physical and spatial considerations policies
on land capability, urbanization, agricultural development and natural resources
development.

(d) Further it is hereby declared to be the policy of the State to safeguard life,
health, property, and public welfare, consistent with the principles of environmental
management and control.

(d) Towards this end, the State shall approve the granting of tax and other
appropriate incentives to commercial and industrial establishments, and developers who
will incorporate Rainwater harvesting Technologies in their respective businesses.

SECTION 4. Scope This Act shall apply to commercial and industrial
establishments, and private developers governed under Philippine laws.

SECTION 5. Incentive Mechanisms. Incentives present a creative tool local
governments can use to encourage the use of RWH technology and practices among


commercial and industrial establishments within their purview. These incentives can be
applied to both new developments and existing developments. For new development
projects, incentives can be incorporated into the development processes, such as
building and other related permits and other development codes and requirements, to
creatively encourage the use of RWH technology and concepts. In already developed
areas, incentives can be designed to encourage private property owners to retrofit their
properties to include RWH infrastructure designs and practices.

(a) Development Incentives: Offered to developers during the process of applying
for development permits. Development incentives apply to private developers that take
initiative by using more sustainable site design and green building practices. These
incentives are typically provided within the framework of existing land use or development
regulations end often remove or decrease fees, requirements, or steps in the permit
process.

(b) Tax incentives. Offered to the commercial and industrial sector in exchange for
specific actions or investments supporting RWH technology and practices. Tax
incentives which can be granted include Tax Deductions, Tax Credits, and Tax
Reductions as may be provided by the Implementing Rules and Regulations of this Act.

SECTION 6. Implementation. - the Bureau of Internal Revenue and Local
Government Units (LGUs) shall have the primary responsibility in the effort of
implementing the provisions of this Act and its IRR. Respective LGUs shall also develop
a strategic communications plan to duly advocate the use of RWH and communicate the
incentive scheme under this Act to their respective constituencies.

SECTION 7. Appropriations. The amount necessary to carry out the provisions
of this Act shall be charged against the current year's appropriation of the concerned
government agencies. Thereafter, such sums as may be necessary for the operation and
maintenance of this Act shall be included in the General Appropriations Act.

SECTION 8. Implementing Rules and Regulations. Within ninety (90) days after
the effectivity of this Act, the Department of Interior and Local Government (DILG),
‘together with the Department of Environment and Natural Resources (DENR), the
Bureau of Internal Revenue (BIR), in consultation with the Department of Public Works
and Highways and the Joint Building and Environmental Planning Research and
Standards Commission, shall promulgate the implementing rules and regulations
governing this Act.

SECTION 9. Separability Clause. If for any reason, any provision of part hereof
is declared invalid, the other provisions not affected thereby shall remain in full force and
effect.

SECTION 10. Repealing Clause. — Any provision of the law, presidential decree,
executive orders, rules and regulations contrary to the provision of this Act is hereby
repealed, amended or modified accordingly.

SECTION 11. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes earlier.

Approved,