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Republic of the Philippines m
HOUSE OF REPRESENTATIVES DATE November 7, 2022 (9)
Quezon City

TIME 11:30 am *

INETEENTH CONGRESS
First Regular Session

HOUSE BILL No. _5877

Introduced by Representative Joseph Gilbert F. Violago

EXPLANATORY NOTE

In 2019, the World Health Organization released a report stating that 1 in 3 people
worldwide do not have access to safe drinking water, or roughly 2.2-billion people who do not
have safely managed drinking water services." It is also estimated that 4.2 billion people do not
have safely managed sanitation services, and 3 billion lack basic handwashing facilities. This
is an unfortunate situation, given that the United Nations General Assembly explicitly
recognized through Resolution 64/292 (28 July 2010) the human right to water and sanitation.
The Resolution also recognized that clean drinking water and sanitation are fundamental to the
realization of all human rights.

Likewise, the 1987 Constitution provides that the State shall protect and promote the
right to health of the people and instill health consciousness among them. (Art. II, Sec. 15)
Thus, itis the duty of the State to ensure that safe, quality, and sustainable supply of water, and
access to sanitation services, are readily available to the public.

Hence, it is endeavored to establish a national framework for resource management of
‘water. This is to ensure the sustainability of the Philippines’ natural resources, especially water,
for the generations to come. It is also ideal - in the mission of providing safe, quality, and
sustainable water supply and access to sanitation services for all - that a focal department or
agency steers the Philippines to the realization of that goal. For this reason, a department of
‘water resources shall be the primary agency which will carry out the planning, policy
formulation, and management of the utilization, exploitation, development, and protection of
water resources in the country, among other powers and functions.

This commendable bill had been filed in the past Congress and the present proponent
is acknowledging the wisdom and hard work of his predecessors.

In view of the foregoing, the urgent passage of this measure is sought.

JOSE! BERT F. VIOLAGO

+N.a.“Lin3 people globally donot have access to safe drinking water - UNICEF, WHO". World Health Organization. 18 June
2019. Web. Accessed on 19 October 2022. <hitps://www.who int/news/item/18-06-2019-1-In-3-people-globally-do-nat-
have-accessto-safe drinking-water unicef -who>

2 Ma. “The human right to water and sanitation.” United Notions. Nd. Web. Accessed on 19 October 2022. <
ttps//nww.un.org/waterforifedecade/human_right_to_water shtmb>


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No._ 5877

_Introduced by Representative Joseph Gilbert F.Violago

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

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

SECTION L. Short Title. — This Act shall be known as the “National Water Act”.

SECTION 2. Declaration of Policy. — Access to water is a basic human right. All water
belongs to the State which shall govern its development and utilization for the people. It is
hereby declared the policy of the State to ensure the provision of safe, adequate, affordable,
and sustainable water supply and improved sanitation services, while maintaining the
protection, preservation, and revival of the quality of the country’s water resources and
ecological balance.

In pursuit of this policy, this Act shall have the principal objective of ensuring and accelerating,
universal access to water supply and sanitation services, in a regulatory regime that encourages
responsible private sector participation, and shall foster and prioritize the establishment of
infrastructure and public works that adopt innovative solutions and international best practices
to address the challenges of climate change. Further, all water and water treatment
infrastructure projects are hereby declared as projects imbued with national interest

SECTION 3. Definition of Terms. — As used in this Act:

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

b. “Environmental services” refer to qualitative functions of natural non-produced assets
of land, water, and air, including related ecosystems, and their biota, and which may be


é

categorized into three basic types: (a) disposal services which reflect the functions of
the natural environment as an absorptive sink for residuals; (b) productive services
which reflect the economic functions of providing natural resource inputs and space for
production and consumption, and (c) consumer or consumption services which provide
for physiological as well as recreational and related needs of human beings.

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

“Flood Risk Management (FRM)” refers to such acts of defining and determining the
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of
incurring loss of both life and property due to flood waters. Flood risk management
consists of a cycle of prevention, mitigation, adaptation, preparedness and early
warning, and response and recovery. The elements of FRM include: integrating land-
use planning and coastal zone management into water management; adopting a holistic
approach so that FRM is part of wider risk or mult-hazard management of earthquakes,
landslides, and storm surges; managing risk and uncertainty as a whole so it not only
mitigates hydrological uncertainties but also social, economic and political
uncertainties on account of human behavior and the cultural dimensions of FRM.
“Gender equality” refers to the principle asserting the equality of men and women and
their right to enjoy equal conditions realizing their full human potential to contribute to
and benefit from the results of development, and with the State recognizing that all
‘human beings are free and equal in dignity and rights.

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

“Integrated Water Resource Management (IWRM)” refers to a systematic,
collaborative, and multi-stakeholder process which promotes the coordinated
development and management of water, land, and related resources within geophysical
boundaries in order to maximize the resultant economic and social welfare in an
equitable manner, and without compromising the sustainability of vital ecosystems.
“Levels of water supply” refer to communal sources of water described according to
location and size of the recipient human settlement as follows:

1. Level I or the point source is a protected well or a developed spring with an
‘outlet but without any distribution system, generally adaptable to rural and
upland areas where houses are thinly scattered, and is a facility which usually
serves an average of 15 households.

Level II or the communal faucet system or stand posts is a system composed of

a water source, a reservoir, a piped distribution network, and communal faucets

where one faucet serves 4 to 6 households and is generally suitable for rural and

urban fringe areas where houses are clustered densely to justify a simple piped

system.

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

v



i. “License” refers to the Water Supply and/or Sanitation Services Operating License that
the Water Regulatory Commission is authorized to grant and issue to service providers.

j. “Licensee” refers to a service provider to whom a license is granted or issued by the
‘Water Regulatory Commission.

k. “Missionary Water Services” refer to water supply or services to areas that have no
existing safewater supply and services due to geographic limitation or absence of
‘economic and market viability.

1. “National Water Resources Management Plan (NWRMP)” refers to a policy document
‘that contains a framework to guide the development and management of all the water
resources in the Philippines, the general strategies and work to be pursued to ensure the
sustainability of the resource towards water security, and top-level direction on the
utilization of existing water resources in line with national development plans, policies,
and programs in accordance with the IWRM framework. The NWRMP shall also
include a water infrastructure development program for all waters of the country as well
as provide general guidance on how this shall be supported within an integrated
financing framework that can draw from publie, private, and intemational development
funding sources.

m. “Net Waste Load” refers to the difference of the initial waste load of the abstracted
water and the waste load of the final effluent discharge of an industry.

rn. “Regulatory Units” refer to the offices established under Section 20 of this Act which
issue licenses authorizing the operation of Water Supply and Sanitation Services, and
provide, review, determine, fix, and approve water and sewerage tariffS, rates, and
‘charges that licensees may impose.

©. “River basin” refers to an area of land drained by a stream or body of fixed water and
its tributaries which have a common outlet for surface run-off.

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

q. “Sanitation” refers to the provision of facilities and services for the safe management

of human exereta, from toilet to containment, and storage and treatment onsite or

conveyance, treatment and eventual safe end use or disposal, and includes the safe
management of solid waste and animal waste.

“Sediment management” refers to control of sediment erosion and deposition in rivers,

reservoirs, and coastal zones through non-structural and structural measures and control

works.

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

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

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

v. “Service Area” refers to the area covered by the water distribution system, sewerage,
and /or septage management services.

w. “Service Provider” refers to any entity, natural or juridical, whether private or public,
providing or intending to provide levels If & III water supply, including bulk water



suppliers, sewerage, septage treatment, and disposal services for domestic, residential,
industrial, or commercial use.

x. “Sewage” refers to water bome human or animal wastes, excluding oil or oil waste,
removed from residences, buildings, institutions, and industrial and commercial
establishments together with such groundwater, surface water and storm waters as may
be present including such waste from vessels, offshore structures, other receptacles
intended to receive or retain waste or other places or the combination thereof.

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

2. “Sewers” refer to pipes or such other works or structures which are built and
constructed to carry, transport, and dispose of sewage

lusion” refers to the process of improving the terms for disadvantaged
individuals and groups to take part in society.

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

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

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

ee. “Water pollution” refers to any alteration of the physical, chemical, biological, or
radiological properties of a body of water resulting in the impairment of its purity or
quality.

ff. “Water resource” refers to water under the ground or groundwater, water above the
ground such as surface water, run-offs, floods, stormwater and urban drainage, treated
‘wastewater, water in the atmosphere or rain water, and the waters of the sea within the
territorial jurisdiction of the Philippines.

gg, “Water Resources Regions” refer to the contiguous clusters of river basins which are
grouped together according to the hydrological boundaries, physiographic features, and
homogeneity in climate, whether or not they straddle different local government units,
for administrative purposes under the Department of Water Resources.

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

ii, “Water supply service” refers to any activity comprising Levels I, II and IIT water
supply including bulk suppliers, suppliers to subdivisions, and other water service
providers.



CHAPTER IT
‘THE DEPARTMENT OF WATER RESOURCES,

SECTION 4. The Department of Water Resources. - There is hereby created and established
the Department of Water Resources, hereinafter referred to as the Department.

SECTION 5. Mandate of the Department. — The Department shall be the primary agency
responsible for the comprehensive and integrated identification and mapping of all water
resources, planning, policy formulation, and management of the ownership, appropriation,
utilization, exploitation, development, and protection of water resources in the Philippines to
ensure the optimal use thereof for domestic and municipal water supply, sanitation, irrigation,
hydropower, industry, navigation, flood management, and recreation except fisheries or
aquaculture.

‘The Department shall also be the primary agency responsible for the planning and policy
formulation towards the attainment of universal access to safe, adequate, affordable, and
sustainable water supply, and improved sanitation services for all Filipinos. The Department
shall be the primary national agency to enforce Presidential Decree No. 1067 otherwise known
as The Water Code of the Philippines and Republic Act No. 9275, otherwise known as the
Philippine Clean Water Act of 2004,

The Department shall exercise the powers and functions of the defunct Pasig River
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and abolished
under Executive Order No. 93 Series of 2019, specifically the following roles that were
transferred to the Manila Bay Task Force and DENR through the latter EO:

Update and take the lead in the overall implementation of the Pasig River Rehabilitation
Master Plan, which shall hamess the Pasig River's potential for transportation,
recreation and tourism purposes while undertaking the rehabilitation and restoration of
its maritime life; and

b. Ensure that the easements provided for in the Civil Code and other relevant laws are
‘enforced, especially in all the esteros and waterways that drain into the Pasig River as
well as abate the dumping of untreated industrial wastewater and sewage into the river,
including all acts and omissions in violation of Presidential Decree (PD) No. 984, s
1976, as amended entitled, Providing For The Revision Of Republic Act No. 3931,
Commonly Known As The Pollution Control Law, And For Other Purposes, PD No.
274, s, 1973 entitled, Pertaining To The Preservation, Beautification, Improvement And
Gainful Utilization Of The Pasig River, Providing For The Regulation And Control Of
Pollution Of The River And Its Banks In Order To Enhance lis Development, Thereby
Maximizing Its Utilization For Socio-Economic Purposes, and other related laws.

SECTION 6. Guiding Principles. — In the pursuit of its mandate, the Department shall be
guided by the following key principles:

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


government, local government, non-government organizations, private organizations,
individuals, even global societal actors, and in various sectors such as water supply,
irrigation, fisheries, hydropower, navigation, ecosystem services, flood management,
climate change, and recreation. It shall entail publicly transparent, socially accountable,
and multi-stakeholder participatory water policy planning, management, and decision-
making processes.

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

c. Integrated Water Resource Management (IWRM) shall be adopted as the basic
framework which is the coordinated development and management of water, land, and
related resources within hydrological boundaries to optimize economic and social
welfare without compromising the sustainability of vital ecosystems. The IWRM
Framework shall include an enabling environment that utilizes proper policies, legal
instruments, and institutional frameworks for effective implementation, participatory
and collaborative water policy and management decisions, and management
instruments for efficient use of updated and accurate data, science-based decision
support systems, proper information, education, communication (IEC) programs,
assessment and allocation tools, or regulatory functions. It shall observe the mutual
secountability mechanism among stakeholders at the national, regional, and global
levels reinforcing multi-stakeholder decision-making following a framework with
specific, measurable, attainable, relevant, and timely actions.

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

e. Integrated and accurate data collection and analysis and the use of scientific decision
support systems shall be undertaken in water resources management including flood
modeling and warning systems that are essential for an effective, efficient, and
sustainable water resources management system.

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

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

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

SECTION 7. Objectives of the Department. ~ The Department shall:


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

b. Prioritize and seek the immediate attainment of universal access to safe, adequate,
affordable and sustainable water supply and improved sanitation services for all
Filipinos in a manner consistent with the protection, preservation, and revival of the
quality of the country’s water resources, and to adopt all needed measures to advance
the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature;

¢. Strengthen and coordinate integrated water resources management planning and policy
‘making to ensure sustainable and fair allocation and efficient use of water resources
among competing uses and users;

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

e. Develop sustainably, and manage water sources and water resources toward water
security, taking into consideration water, land, and related resources aimed at increasing
water dependability for different uses, optimizing economic benefits and social welfare
without compromising the sustainability of vital environmental systems;

f. Strengthen and coordinate policy making and planning towards ensuring the
availability of water for food security and energy security, as well as towards the
protection of communities and environments against flood and other water induced
hazards including sediment hazards;

g. Ensure that the strategy for water resources development and conservation is
participatory, and that planners, policymakers and users including community members
are involved at all levels;

h. Develop a standardized pricing framework for water use that accounts for
environmental externalities; and

i. Ensure that all sources of water, including surface water, groundwater, rainwater and
floodwater are identified, mapped, monitored, conserved and managed for productive
use and the resulting wastewater is managed properly, reused, and responsibly disposed
of following approved environmental standards.

SECTION 8. Powers and Functions of the Department. ~ The Department shall have the
following powers and functions:

1. Policymaking and Planning


._ Ensure that Integrated Water Resources Management (TWRM) is adopted as the
strategic framework for water management policy making and planning in the
country and coordinate the implementation, promotion, revision and
enhancement of IWRM plans;

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

. Formulate and develop policies to promote universal access to safe, adequate,
affordable, and sustainable water supply, and improved sanitation services for
all Filipinos;

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

Undertake river basin survey, inventory and appraisal of water and related
resources, and develop comprehensive basin-wide plans of storage, retardation,
and control to maximize conservation and multipurpose use of water in the
basin;

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

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

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



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

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

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

1. Ensure that the planning and design of water infrastructure considers the highest
efficiency and most appropriate technology and quality, in accordance with
national development objectives;

Review existing guidelines appropriate for private sector participation in the
water sector and submit recommendations to the Public-Private Partnership
(PPP) Center of NEDA and other concerned agencies to promote and enable
‘more PPPs in the sector,

1. Build a central repository of water data and effect inter-sectoral, inter-agency,
and inter-departmental coordination on all aspects of data gathering and
‘management for water resources development planning and compel the
submission of statistics and data on water utilization with the aim of
‘operationalizing the integrated approach to water resources managemet

©. Ensure the effective implementation of all the provisions of Republic Act No.
9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter
IL of Presidential Decree No. 856, otherwise known as the Code on Sanitation
of the Philippines;

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

4q. Issue and promulgate rules, regulations and guidelines as may be necessary to
implement and enforce its powers and functions under this Act.

Resource Regulation


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

Regulate and control the utilization, abstraction, diversion and development of
water resources, taking in consideration their equitable distribution among
competing demands and determine the standards of beneficial and priority uses
of water in times of crisis and national emergencies;

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

Regularly review regulations prescribed by any government agency pertaining
to water use, exploitation, development, and conservation or protection of
waters, water resources, and watershed or basin areas with respect to this Act;

Impose fees or charges, as may be deemed necessary for water resources
conservation and protection, such as:

1. Polluter’s Fee, which shall be based on the net waste load depending
‘on the wastewater charge formula pursuant to Republic Act No. 9275;

2. Raw water price, which shall take into account, among others, the
scarcity of water; and

3. Appropriate payment structures for environmental services:

Deputize LGUs to collect the national fees or charges for resource regulation
within their respective jurisdictions;

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

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



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

j. Develop and continuously update a computerized decision support system that
incorporates data management systems relating to acquisition and database,
‘model base in terms of physical design, planning and decision models, and user-
friendly interface concerning graphical and visualization tools;

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

1. Raise public awareness through information, education and communications

programs, and build capacities for informed participation in water resources
‘management at the national and river-basin level.

Institution

Arrangement with Public Water Organizations

a, Develop guidelines including rules of partnership, between and among the
Department, field offices of national government agencies, LGUs and other
stakeholders in water resource management, and facilitate the establishment of
multi-stakeholder river basin organizations (RBOs) per river basin, and
strengthen and support existing RBOs and monitor their activities;

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

©. Authorize its representatives or any deputized agent to enter any property of
public dominion with or without prior notice and consent, any private land,
building or enclave, whether inhabited or not, for the purpose of conducting,
hydrologic surveys and investigations, including assessing and evaluating the
conditions of water facilities installed, and determining compliance with water
Jaws and standards;

d. Provide technical assistance to water users including farmers, communities, and
LGUs and other water service providers (WSP) whether directly or in
coordination with other agencies on all aspects of integrated water resources
management;

e. Respond to consumer complaints, and ensure the adequate promotion of
consumer interests;

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


Appoint, hire, and maintain adequate staff and personnel, advisers or
consultants with suitable qualifications and experience, as necessary, subject to
existing rules and regulations.

WW. Coordi

jon

a. Coordinate and integrate water resources development activities of the country
within the context of national plans and policies for social and economic
development;

b. Coordinate with other goverment agencies, universities, academe and private
professional groups in all aspects of data gathering, the conduct of special
studies and research on all related aspects of water resources management and
development such as climate change, environmental quality, desalination, and
the development of operating strategies, procedures, and protocols and
‘accompanying computerized decision tools for major water 85

©. Coordinate with the concerned and relevant agencies engaged in flood control,
flood risk management, and drought risk management; and

4. Coordinate proactively with LGUs to ensure the integration of water resources
development plans into their comprehensive land use plans (CLUPs),
Comprehensive Development Plans (CDPs) or Provincial Physical Framework
and Development Plan (PPFDP).

V. Other Functions

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

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

c. Exercise such other powers and functions necessary or incidental to the effective
administration and management of the country’s water resources.

SECTION 9. Secretary of the Department of Water Resources. ~ The authority and
responsibility for the exercise of the mandate of the Department and for the discharge of its
powers and functions shall be vested in the Secretary of the Department, hereinafter referred
to as the Secretary, who shall:


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

b. Establish the policies and standards for the operation of the Department pursuant to the
President's guidelines;

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

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

e. Supervise all attached age

and corporations in accordance with law;
Represent the Department in contracts, awards, and other similar agreements;

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

h, Act as the Chairperson of the governing board of the attached agencies of the
Department;

i. Designate and appoint officers and employees of the Department, excluding the
Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional Directors,
in accordance with the civil service laws, rules and regulations; and

Perform such other duties and responsibilities as may be provided by law.

SECTION 10. Office of the Secretary. —'The Office of the Secretary shall be composed of the
Secretary, Undersecretary, Assistant Secretary and the Secretary's immediate staff.

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

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

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


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

Perform such other functions deemed necessary as may be assigned or delegated by the
Secretary to promote efficiency and effectiveness in the delivery of public services or
as may be required by law: Provided, That the Undersecretary for Planning and Policy
shall, in coordination with the Planning and Policy Service, be primarily responsible
for advancing current efforts in attaining the ultimate goal of universal access to water
supply and sanitation systems, and sustainable management of water resources under
the SDGs, and the integration of water, energy, environment and food security.

SECTION 12. Assistant Secretaries. ~The Secretary shall be assisted by six (6) Assistant
Secretaries to be appointed by the President of the Philippines upon the recommendation of the
Secretary: one each for Planning and Policy Service, Decision Support System Service,
Resource Regulatory Service, Comptrollership and Financial Management Service, Legal and
Legislative Service, and Administrative and Human Resources Management Service.

No person shall be appointed Secretary, Undersecretary and Assistant Secretary of the
Department unless the person is a citizen and resident of the Philippines, of good moral
character, of proven integrity, competence and expertise in water resource management:
Provided, That at least one (1) of the Undersecretaries and at least two (2) of the Assistant
Secretaries shall be career officers.

SECTION 13. Organizational Structure. — The Department shall be composed of the
following organizational units:

a. Department Proper. ~The e Department shall consist of the Office of the Secretary,
the Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit Office,
the Public Affairs Office, the Water Pollution Adjudication Board, the Planning and
Policy Service, Decision Support System Service, Administrative and Human
Resources Service, Legal and Legislative Service, Comptrollership and Financial
Management Service, Resource Regulation Service, and the Water Resources Regional
Offices.

b. Attached Agencies, — The Department shall exercise administrative supervision over
the following agencies for purposes of policy and program coordination, monitoring,
and evaluation:

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


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

ii, fumnish technical assistance and personnel training programs for local
water utilities;

iii, monitor and evaluate local water standards; and

iv. effect system integration, joint investment and operation, district
annexation and de-annexation whenever economically warranted as
amended by Sec. 22, Presidential Decree No. 768.

2. The Metropolitan Waterworks and Sewerage System (MWSS), whose
‘mandate, powers, and functions are defined under Republic Act No. 6234, as
amended entitled, An Act Creating The Metropolitan Waterworks And
Sewerage System And Dissolving The National Waterworks And Sewerage
Authority; And For And For Other Purposes, shall be transferred from the
DPWH and attached to the Department: Provided, That the MWSS shall
continue to facilitate the exercise by the concessionaires of their
responsibility; carry out accounting and notification functions; monitor,
report, and administer loans; perform related functions in connection with
existing projects; manage and dispose its retained assets: and manage and
operate the Umiray-Angat Transbasin Project.

3. The National Irrigation Administration (NA), whose mandate, powers, and
functions are defined under Republic Act No. 3601 as amended by
Presidential Decree No. 552 and Presidential Decree No. 1702;

4. The Laguna Lake Development Authority (LLDA), whose mandate, powers
and functions are defined under Republic Act No. 4850, as amended entitled,
An Act Creating The Laguna Lake Development Authority, Prescribing Its
Powers, Functions And Duties, Providing Funds Therefor, And For Other
Purposes shall be transferred from the DENR and attached to the
Department. The LLDA shall continue to serve as the lake management and
development authority similar to a multi-stakeholder river basin organization
and shall ensure the implementation of the Laguna Lake Master Plan which
shall be updated by the Department to ensure alignment with the NWRMP.

Any other agency performing water resources management, conservation
and protection functions may be transferred to the Department as the
President deems necessary.

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


appropriations, records, equipment and property shall be subsumed under the
Department
1. The National Water Resources Board (NWRB) with all its divisions and
sections, whose mandate, powers and functions are provided in Presidential

Decree No. 424, as amended;

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

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

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

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

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

4. Functions to be Transferred to the Department. — The following functions of the
respective agencies, bureaus, and units shall be transferred to the Department:

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

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

3. The protection and conservation of natural wetlands such as lakes, marshes,
swamps of the Biodiversity Management Bureau of the DENR; and

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

5. ‘The flood management planning and sediment management function of the

Flood Control Management Cluster of the DPWH; and

6. ‘The Water Resource Management Division and the water research functions
of the Soils and Water Research Division of the Bureau of Soils and Water


“Management under the DA. Alll soil-related functions shall be retained under

the Bureau which shall be renamed as the Bureau of Soil

€. Support Services. ~The Department shall create the following support services:

The Planning and Policy Service shall provide the Department with the
capability to undertake water infrastructure development planning and
programming, and shall exereise the following functions:

iv.

vie

. Identify, based on the river basin master plan, pri

Advise the Secretary on all matters relating to water resources plannin;

Assist the Undersecretary for Planning and Policy on all matters related
to the specific functions of the position;

Formulate strategies and priorities for water resources management and
development consistent with national development objectives, and
initiate or undertake relevant surveys for development planning;

Develop and regularly update a comprehensive and integrated National
Water Resourees Management Plan and ensure its integration into
existing land use plans;

Coordinate river-basin planning following the integrated water
resources management framework and the river-basin approach;

Formulate or update existing River Basin Master or Comprehensive
Plans which includes all aspects of water management and development
such as water supply and sanitation, irrigation, flood control and
stormwater or urban drainage, drought risk management, water resource
development systems and other public water works projects, including
phasing of implementation;

ity packages for
water infrastructure development per river basin, including water
supply, sanitation, irrigation, flood control and stormwater or urban
drainage, drought risk management, water resource development
systems and other public works projects, package project proposals for
funding and prioritize project implementation and the allocation of
funds and other resources and undertake or supervise and evaluate the
conduct of feasibility studies and project preparation thereof;

Evaluate and appraise ll regional and inter-regional infrastructure water
development plans and programs as to their feasibility and consistency
with approved strategies and medium and long -term plans;



ix. Gather, analyze, and organize needed statistical data and information;

x. Provide technical assistance related to its functions to the other services,
bureaus and the regional offices as needed;

xi. Conduct hydrological and hydraulic surveys and assessments of surface
waters;

xii, Develop general criteria and standards on project investigation,
formulation, planning;

xiii, Develop guidelines and standards on social inclusion in water resources
management and ensure policies, programs and plans are compliant with
the gender and development framework of the government;

xiv. Coordinate closely with PAGASA for rainfall and other climate data
which shall be considered in the planning for water resources
development and management and for various water infrastructure; and

xv. Perform such functions and activities, as may be mandated by law,
which are necessary for the effective attainment of the abovementioned
objectives.

. The Decision Support System Service shall provide the Department with
‘water resource management tools and computerized decision support system
‘that incorporates a data management system relating to acquisition and
database and model base in terms of physical design, planning and decision
models including services related to networking, data management, and
information and knowledge or leaming management systems for
‘administrative and nontechnical support It shall provide the Secretary timely
reports on the status of various Department projects and activities. For this
purpose, it shall exercise the following functions:

Provide the Secretary the necessary data and processed information to
aid in policy and management decisions under the mandate of the
Department;

Publish available real-time raw water data as well as verified or
validated water data in print or electronic form using latest intemet
technology;

Conduct and publish in print and/or electronic form, standard data
analysis such as basic statistical analysis, trend analysis, analysis of
runs, and cluster analysis;


iv. Develop and continuously update water resource management,
computerized decision support systems (DSS) that incorporate data
management systems relating to acquisition and database, model base in
terms of physical, design, planning and decision models, and user-
friendly interface such as graphical and visualization tools.

‘The DSS is composed of: 1) a measurement or data acquisition system;
2) information or database management system; 3) analytical and
numerical models for design, planning, decision or evaluation purposes,
and 4) a user-friendly interface which includes graphical interface or
visualization tools.

vv. Develop and maintain specific models to include the following:

a. long-term climatologic and weather forecasting model;

b. watershed models and river-floodplain models;

¢, groundwater models and coupled to surface water models;

4. flood forecasting model for major rivers;

€. optimization-simulation management models for watershed
conservation, conjunctive surface and groundwater use,
irrigation scheduling, normal and emergency operations of
multi-purpose reservoirs; and

£. water quality and ecological models.

vi. Develop and administer the management information system and
knowledge systems of the Department to:

a. Retrieve, process, and monitor information on all projects and
activities in the web portal;

b. Conduct and apply systems and process engineering, software
development, software configuration management;

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

4. Develop and manage its Information and Communications
Technology (ICT) infrastructure and ICT related-services


including computer networking and voice communications
services and data exchange, and

€, Manage the literacy and training services of the Department on
various ICT and Knowledge Management (KM) tools and
applications, including information and knowledge
management.

Perform such other related functions and activities which are necessary

for the effective administration of the management information and
knowledge systems of the Department,

3. The Administrative and Human Resource Service shall provide the
Department with services relating to human resources development,
personnel, records, facilities maintenance, medical and dental, security,
property and procurement services, and shall exercise the following
functions:

vie

vii.

Advise the Secretary on all matters relating to intemal administration
and human resources management;

|. Prepare and implement an integrated personnel development plan that

shall include provisions for merit promotions, performance evaluation,
job rotation, incentive awards systems, and health and welfare services;

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

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

Develop, establish, and maintain an efficient and effective security
system covering, among others, personnel, physical installations,
facilities, equipment, documents and materials including the conduct of
security investigations;

Coordinate with the appropriate government agencies for a more
efficient conduct of administrative processes;

Develop, establish, and maintain an efficient records system;

Provide assistance inits area of specialization to the Department Proper,
bureaus and regional and water district offices and, when requested, to


ix.

the government agencies and corporations attached to the Department;
and

Perform such other related functions and activities which are necessary
for the effective management of the resources of the Department,
including its human resources.

|. The Legal and Legislative Research Service shall provide the Department
with services on such legal affairs as contract letting and litigation, legal and
legislative research, complaints and investigation, legal counselling and
other matters of law, and shall exercise the following functions:

iii,

iv.

vie

vii.

viii.

Advise the Secretary on all matters relating to legal and legislative
affairs;

Prepare Department contracts and legal instruments, review and
interpret all contracts and agreements entered into by the Department
and evaluate all legal proposals;

Conduet administrative investigation and the review of administrative
charges against officers and employees of the Department;

Exercise functional jurisdiction over the legal staffs of Regional Offic

Provide legal assistance to the Department Proper, the bureaus and
regional offices and when requested, the attached corporations;

Develop and prepare the Department's Legislative Agenda, recommend
presidential certification of the urgency of priority water bills, and other
‘water-related legislation;

Coordinate and maintain linkages between and among the various
offices, bureaus, regional offices and attached agencies to the
Department along with other government agencies on policy matters
affecting the Department's mandate in relation to legislation;

Perform liaison and networking activities in relation to the enactment of
related laws relating to water resources issues in legislative
policymaking bodies such as the Senate of the Philippines, the House of
Representatives, and the various Sanggunians;

. Monitor the progress of the Department's priority or certified bills to

ensure their passage; and


5.

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

‘The Comptrollership and Financial Management Service shall provide the
Department with coordinated services relating to financial systems and
procedures, budget, cash, accounting and all financial housekeeping
matters, and shall exercise the following functions:

Advise the Secretary on all matters relating to the accounting of
government expenditures and receipts, budgeting and cash management,
project finances and financial systems and procedures;

Prepare budget proposals and pursue formal budget authorizations,
undertake budget execution, and prepare and submit all appropriate
reports to the proper offices:

Develop and maintain accounting, financial and assets management
systems, procedures and practices in the Department Proper, Bureaus
and Regional Offices;

iv. Review and appraise systems and procedures, organizational structure,

assets management practices, accounting, and other records, reports, and
performance standards such as budgets and standard costs of the
Department, bureaus, and regional of

v. Provide assistance in its area of specialization to any unit of the
Department and, when requested, to government corporations and
councils attached to the Department; and

vi. Perform such other related functions and activities which are necessary

for the eflfective financial management of the Department.
The Resource Regulation Service shall provide the Department with
services for the effective regulation of all water-related services and
activities and shall exercise the following functions:

i. Advise the Secretary on all matters relating to resource regulations;

ii, Determine, grant and regulate water rights for the appropriate, optimal
and sustainable use of surface and ground water

Determine and evaluate waterworks and sewerage licenses, and submit
evaluation results to the Water Regulatory Commission for the latter's
consideration in granting of licenses;


vi.

iv. Investigate violations of the water rights and the Water Code, and

impose the appropriate sanctions in accordance with existing laws, rules
and regulations as well as future rules and regulations which the
Department shall promulgate;

Adjudicate water use conflicts; and

Perform such other related functions and activities which are necessary
for the effective regulation of water-related services.

‘The Internal Audit Service shall regularly conduct a comprehensive audit of
various Department activities and shall exercise the following functions:

Advise the Secretary on all matters relating to management control and
operations audit;

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

|. Review and appraise systems and procedures, organizational structure,

assets management practices, accounting and other records, and
performance standards such as budgets and standard costs of the
Department Proper, bureaus and regional offices;

. Analyze and evaluate management deficiencies and recommend

realistic courses of action; and

Perform such functions and activities, as may be mandated by law,
which are necessary for the effective performance of the above-
mentioned objectives.

. The Public Affairs Service shall enhance relations with all stakeholders

including the media, for the effective dissemination of information relating
to water-related issues, including important announcements on policies and
activities of the department that are of interest to the general public. It shall
ensure that women, men, elderly, and people with disabilities shall be
consulted, organized and take active part in all aspects of water resources
development and management activities. It shall also lead the planning and

organizing of special events, and shall exercise the following functio

Public Awareness

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


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

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

d. Conduct public opinion and attitude surveys to identify the
interests and concems of the stakeholders of the Department;

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

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

g. Coordinate the conduct of interviews and news conferences;
h. Make public announcements on matters relating to the work and

activities of the Department through the print and broadcast
media, either through press releases or live interviews:

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

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

ii, Promote Participation
a. Conduct public consultations and discussions;

'b. Develop and disseminate relevant and appropriate materials and
programs for public information and education, as well as
advocacy campaign;

¢. Conduct seminars and workshops involving the LGUs and the
general public on current water issues and problems; and

4d. Conduct capability building seminars of various stakeholders to
promote the meaningful participation in the Department’s policy
making, planning, development and implementation of various
programs and projects.



iti,

Special Events

8, Coordinate the organization and promotion of special events and
water exhibits;

b. Actas the focal office for all water-related events; and
. Perform such functions and activities, as may be mandated by

law, which are necessary for the effective performance of the
abovementioned objectives.

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

1. The Bureau of Flood Control and Drainage shall plan and design flood
control and drainage structures and facilities in according with technical
standards, guidelines and manuals. For this purpose, it shall have the
following duties and responsibilities:

4

iv.

Formulate policy, strategies and programs on flood risk management in
the context of integrated flood management (IFM) which integrates
water, land, coastal zone and multi-hazard management. In integrating
Jand use planning and water management, the Director shall harmonize
and synthesize plans to enable the sharing of information between land-
use planning and water management authorities. In this regard, a holistic
approach shall be adopted by making the IFM a part of a wider risk or
multi- hazard management system that includes earthquakes, landslides,
fires, tsunami, and other calamities of the same gravity or nature;

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

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

Prepare master plans for urban drainage in cities and municipalit

Prepare feasibility studies of recommended measures in the master
plans;

i. Plan and design structural measures for flood control and drainage;


viii,

xii.

xiii.

xiv.

Implement and collaborate with concerned agencies on the formulation
and adoption of non-structural measures for flood control and drainage;

Patrol and investigate rivers, and monitor stream flows;

. Conduct post-disaster investigation and evaluation and damage

assessment of flood infrastructures after extreme events;

Conduct research and development on water and sediment-related
disasters;

Develop design guidelines, criteria, and standards on flood control and
drainage structures;

Provide technical assistance to other agencies, LGUs, and other
stakeholders;

Advise the Secretary on declaring flood control areas and recommended
guidelines for floodplain management plans in these areas; and

Perform such related activities which are necessary for the effective
performance of its functions.

2. The Bureau of Water Quality and Management shall supervise and exercise

control over all aspects of water quality management to ensure the
sustainability of the country’s water resources and the protection of the
environment. It should take into account proper and integrated treatment of
freshwater and wastewater within the whole process. For this purpose, the
Bureau shall exercise the following functions:

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

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

|. Establish internationally accepted procedures for sampling and analysis;
iv. Prepare an integrated water quality management framework;
y. Prepare the ten-year water quality management plans for each water

quality management area as part of the River Basin Master Plans and in
support of the NWRMP;


vie

vii,

viii,

xi

Classify groundwater sources and prepare a national groundwater
vulnerability map;

Classify or reclassify all water bodies according to their beneficial
usages using the established water quality guidelines established;

Issue permits, clearances, and similar instruments pursuant to the Clean
Water Act of 2004;

Collect the wastewater discharge fees for all permittees;

Monitor the compliance of water discharge permittees with the effluent
standards;

Regularly monitor the water quality of major water bodies in the country
and analyze the data to identify possible sources of pollution;

|. Issue notices of violations and/or cease and desist orders for those found

xii,

xiv.

in violation;

File the needed cases against violators with the Water Pollution
Adjudication Board (WPAB);

Serve as secretariat of the WPAB; and
Perform such functions and activities, as may be mandated by law,

which are necessary for the effective performance of the
abovementioned objectives.

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

te the river basin master plans for river
basins within its jurisdictions ensuring consistency with the National
Water Resources Management Framework Plan;

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


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

iv. Ensure the implementation of laws, policies, programs, rules and
regulations regarding the above-mentioned infrastructure as well as
public and private physical structures;

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

vi. Coordinate with other departments, agenci
organizations, especially local government units
planning and implementation of the river basin master plans;

institutions and

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

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

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

Each Water Resources Regional Office shall be headed by a Water Resources Regional
Director who shall be responsible for efficiently and effectively carrying out the duties and
responsibilities of the Office. Towards this end, the Water Resources Regional Director shall
exercise functional and administrative supervision over all units within the region and is
authorized to commit resources and assign personnel to integrated regional water resources
management, water supply and sanitation management, and flood control and flood risk
‘management initiatives. The Water Resources Regional Director shall also perform such other
related duties and responsibilities as may be assigned or delegated by the Secretary or as may
be required by law.

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

SECTION 14. Water Pollution Adjudication Board. — ‘There is hereby cteated a Water
Pollution Adjudication Board under the Office of the Secretary. The Board shall be composed


of the Secretary as Chairperson, two (2) Undersecretaries as may be designated by the
Secretary, the Director of Water Quality Management Bureau, and three (3) other
representatives from other stakeholders to be designated by the Secretary as members.

‘The Board shall assume the powers and functions of the National Pollution Control
‘Commission with respect to the adjudication of water pollution cases under Republic Act No.
3931 entitled, An Act Creating The National Water And Air Pollution Control Commission,
Presidential Decree 984 entitled Providing For The Revision Of Republic Act No. 3931,
Commonly Known as the Pollution Control Law, And For Other Purposes, particularly with
respect to Section 6 letters e, f, g, j,k and Republic Act No. 9275. The Bureau of Water Quality
‘Management shall serve as the Secretariat of the Board. These powers and functions may be
delegated to the field officers of the Department in accordance with rules and regulations to be
promulgated by the Board.

CHAPTER II
INTERDEPARTMENTAL RELATIONS AND
INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT

SECTION 15. Interface and Institutional Arrangements with Other Agencies. ~

a. The Department of Health (DOH) shall continue to have primary authority and
responsibility for setting and enforcing drinking water quality standards. The
Department shall coordinate with the DOH in this aspect, and shall ensure consistency
of standards and targets, as well as the compliance of permittees with mandated
standards;

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

€. The Department of Energy (DOE) and the National Power Corporation (NPC) shall
continue to have primary authority and responsibility for establishing and operating
hydropower plants, but shall ensure that hydropower plant development plans are
consistent with the National Water Development and Management Plan;

4. The Department shall coordinate with the DA to ensure agricultural development that
reduces long-term pollution for surface water and groundwater, and agricultural and
industrial economic development that employs water efficiency, water recycling or
reuse, and the appropriate treatment of wastewater;

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


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

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

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

The Department shall coordinate with relevant government agencies, including local
government units (LGUs), with respect to development projects and shall ensure
crosscutting collaboration between and among all water subsectors and facilitate inter-
agency subsector coordination, strategic development, planning, monitoring and
provision of technical, institutional and financial capacity building support to their
different stakeholders at the water subsector level.

SECTION 16. National Water Sector Policy Board. ~ The National Water Sector Policy
Board (NWSPB) shall be created and shall be headed by the Secretary of the Department of
‘Water Resources with the Secretary of the National Economic and Development Authority as
the Vice-Chairperson, and the Secretaries of the DOH, DILG, DOE, DA, Department of Social
‘Welfare and Development; DPWH; Department of Budget and Management (DBM); Office
of the President, and DENR, and National Commission on Indigenous Peoples as members.
‘The Department shall provide personnel to serve as Secretariat to the Board.

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

a. Approve the NWRMP which shall serve as a principal guide to water management
efforts in the country and shall be reviewed every five (5)-years interval, or as may be
deemed necessary, in order to ensure its relevance to the times;

b. Provide overall policy direction and recommend pol
Presidential decision;

jes on water resources requiring

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

4. Ensure a multi-stakeholder participation in the development, updating, and sharing of
information systems as policy, planning and decision-making tools consistent with
TWRM.


SECTION 18. Transfer of Rights and Obligations. —The Department shall, by virtue of this
Act, be subrogated to all the rights and assume all the obligations of the government agencies
and units whose powers and funetions have been subsumed, absorbed, transferred or attached
to the Department in accordance with the rules and regulations of the Commission on Audit,
and the Civil Service Commission, and other applicable laws. The transfer of powers and
functions as herein provided shall take effect within six (6) months of the effectivity of this
Act. As such, all affected agencies, offices, units shall continue to function under their present
mandates.

CHAPTER IV
WATER REGULATORY COMMISSION

SECTION 19. Water Regulatory Commission. — There is hereby created and established as
‘an independent, quasi-judicial regulatory body to be known as the Water Regulatory
‘Commission, hereinafter referred to as the Commission, which shall be organized within one
hundred twenty (120) days after the effectivity of this Act.

‘The Commission shall be placed under the administrative supervision of the Department as an
attached agency. The Commission shall have a Board of Commissioners, and shall be vested
with powers and functions, as conferred and set forth hereunder.

SECTION 20, The Regulatory Units. —'The regulatory units of the Commission shall be
composed of the central regulatory unit and the regional regulatory units.

‘The economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, PEZA,
and TIEZA are hereby transferred to the Commission, and shall collectively comprise its
central regulatory unit for water supply and sanitation services that: (a) provide services to
more than one province; and (b) are owned, operated and/or maintained by special economic
zones and Metro Manila concessionaires. The regional regulatory units shall be established by
the Commission in accordance with this Act and the rules, regulations, guidelines, and
standards that the Commission shall issue.

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

‘The Commission shall exercise the following powers and functions:

‘a. Issue and promulgate rules, regulations and guidelines as may be necessary to
implement and enforce its powers and functions under this Act;


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

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

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

e. Fix and determine proper and adequate rates of depreciation of properties and
equipment used in water supply and sanitation services;

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

2, Require the submission reports of finances and operations, verified under oaths by the
‘owner or president and secretary of the board of the licensee;

hh. Determine and require the monitoring and submission of such data, statisties and other
information from the regulatory units and any or all licensees as may be necessary for
the effective and efficient exercise of its duties, functions, powers and responsibiities

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

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

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

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

1m. Deputize agents, whether from the public or private sector, to assist in the performance
of any of the powers and funetions of the Commission;


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

©. Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, with
suitable qualifications and experience, as necessary:

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

{q. Such other incidental powers and functions as may be necessary to attain the objectives
of this Act.

SECTION 22. Powers and Functions of the Regulatory Units. — The regulatory units of the
Commission shall have the following powers and functions:

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

b. Impose fines, charges and other penalties upon any provider and/or its officers and
stockholders who shall fail or refuse to register or obtain a license prior to operation or
‘commencement of business, as provided hereunder;

c. Review, determine, fix, and approve, consistent with the rules, guidelines, procedures
and methodologies which the Commission shall provide, proposed water and sewerage
and septage management tariffs, rates and charges that licensees may impose upon their
consumers;

4d. Appraise and value property and equipment used by licensees in providing water supply
and sanitation services.

e. Enforce technical, financial, and other performance standards set by the Commission
for licensees or utilities;

£. Respond to consumer complaints and ensure the adequate promotion of consumer
interests and investigate motu propio price manipulation and anti-competitive behar

2. Investigate accidents directly or indirectly arising from or connected with the
maintenance or operation of the service, and make such order or recommendation as
the public interest may warrant;


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

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

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

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

1 Amend, modify, suspend, or revoke any license issued by them, after due notice and
hearing, on any of the following grounds: (1) when the facts and circumstances on the
strength of which the license was issued have been materially misrepresented or have
‘materially changed; (2) where the licensee has failed to meet or comply with terms,
conditions, and performance targets, including but not limited to service expansion, that
‘may have been set in the license; (3) where the licensee is found to be manifestly
inefficient in the operation of or provision of water supply and sanitation services in its
‘area; or (4) when the licensee thereof has violated or willfully refused to comply with
any order, rule or regulation of the Commission or any provision of this Act;

m. Appoint an interim management committee to ensure continuity of service in case a
licensee fails to meet the conditions of the license; and

xn, Submit performance plans and reports as required by the Commission.

SECTION 23. Composition of the Water Regulatory Commission. ~

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



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

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

4d. The Chairperson of the Commission shall exercise general executive contro! and
supervision over the Commission and its members, staff and personnel, agents and
representatives, Within three (3) months from the creation of the Commission and the
appointment of all Members of the Commission, the Chairperson shall determine and
establish the organizational structure and plantilla positions necessary to carry out the
powers and functions of the Commission, including those of the central and provincial
regulatory units subject to the review and approval of the DBM. The plantilla positions
of the Commission shall be filled by regular appointments in accordance with Civil
Service laws, rules, and regulations. Members of the Commission shall enjoy security
of tenure and shall not be suspended or removed from office except for just cause as
specified by law.

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

SECTION 24. Secretariat of the Commission. - The ¢ Commission shall establish a
Secretariat which shall provide the Commission with technical and support services including
the following:

2. Provide the necessary technical inputs and secretariat support to the Commission to
facilitate the conduct of its functions;


b. Coordinate with Regulatory Units to ensure proper implementation of the rules,
regulations and guidelines promulgated by the Commission;

Monitor and assess activities of the Regulatory Units vis-d-vis their respective annual
performance plans and targets;

4. Maintain a database on the water supply and sanitation subsector; and

e. Coordinate with other relevant agencies of the national or local government on any
‘matter relating to water supply and sanitation.

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

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

SECTION 26. Compensation and Other Emoluments. — The compensation of the members
of the Commission and its staff shall conform to provisions of Republic Act No. 6758 as
amended, otherwise known as the Compensation and Position Classification Act of 1989.

CHAPTER V
REGISTRATION AND LICENSING

SECTION 27. Registration and Licensing of All Water Supply and Sanitation Services. —
All water supply and sanitation service providers, including bulk water suppliers and those
providing services to subdivisions and other service providers, shall register with the
Commission and, subject to such rules, guidelines, procedures and other issuances of the
Commission, obtain a license to operate from the appropriate regulatory units.

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

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

Concession agreements and other contracts for water supply provision and water sanitation and
‘treatment services currently existing shall remain valid and enforceable unless otherwise


terminated, after due notice and hearing for reasons provided in the existing terms and
conditions under the concession or service agreement or contract, or when invalidated by the
Commission, after due notice and hearing, where national security, national emergency or
public interest so dictates.

SECTION 28. Conditions of License. - The Commission or the concerned regulatory unit,
may impose such conditions on the licensee as it may deem necessary, such as:

‘a, Tariffs, rates and charges that may be imposed from its customers or consumers.
b. Term fixing the duration of the privilege.

¢. Grounds for modification, suspension or cancellation of the License.

4d. Minimum technical performance and service level standards.

e. Expansion targets and service level improvements over time.

£. Restrictions or conditions for transferability of the business or controlling interest in
the business.

g. Reportorial requirements and obligations of the grantee.

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

The Commission shall specify the requirements and procedure for existing holders of a
Certificate of Public Convenience (CPC), Certificates of Public Convenience and Necessity
(CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by LWUA, to convert
their existing certificates into licenses to operate in accordance with Sec. 27 herein.

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

SECTION 29. Rights and Duties of Licensees. —

a, Any person granted a license under this Act shall have the obligation to ensure that
licensed activities are conducted to further public interest and, in particular:

1. Foster the maintenance and development of efficient, coordinated, and viable
operation of their licensed activities;

Ensure that their water supply and sanitation services are provided in a
diligent, conscientious and workmanlike manner, in accordance with
applicable laws rules and regulations issued by the Commission and the



SECTION 30. Setting Tariffs, Rates, and Other Charges. — Regulatory units shall establi

‘generally accepted standards and practices of the water supply and sanitation
industry; and

3. Comply with drinking water quality requirements and standards that may be
established by the Commission.

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

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

4. Any license issued under this Act shall contain provisions designed to ensure that
licensees:

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

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

3. Maintain financial accounts in accordance with the manner and procedure
specified in the license and as may be required by the Commission; and

4, Maintain and upon request by anyone during regular office hours, promptly
make available for scrutiny and inspection such data, statistics and other
information, as may be required by the Commission.

tariff, rates and other charges which are fair and reasonable, and ensure economic viability
and a fair return on investments. Tariffs, rates and charges shall be based on and consistent
with a rate-setting methodology that the Commission shall, after due consultation, define and
publish, taking into account the following, among others:

1. Reasonable and prudent capital and recurrent costs of providing the service including a
reasonable rate of return on capital;


b._ Efficiency of the service;

. Incentives for enhancement of efficiency;

d._ Willingness to pay of the customers/consumers;

ce. Equity considerations; and

£. Administrative simplicity.
Tariffs, rates, and charges set by the regulatory units shall be presumed valid and reasonable
unless a protest or contest is filed with the Commission.
SECTION 31. Direct Access. — Fifty-one (51) percent of the registered water consumers in a
municipality, city or province may petition for direct access to water from any water service

provider subject to concurrence by the service provider and approval by the Commission. The
‘Commission shall promulgate rules and procedures for this mode of service.

SECTION 32. Innovative Schemes to Improve Efficiency and Management of Systems. ~
‘The Commission shall promote innovative schemes such as the consolidation or integration of
‘water supply and sanitation services, or providers in the same service area, where it shall result
in improved efficiency, service expansion and lower costs. To this end, the Commission shall
establish and issue such rules and guidelines as may be necessary to (a) create incentives to
‘encourage efficiency and service expansion; (b) establish the standards and targets that service
providers are required to meet; and (c) define the fines and penalties that shall be imposed for
failure to meet such standards and targets.

CHAPTER VI
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION

SECTION 33. Proceedings Before the Commission, — For the purpose of any investigation,
inquiry or proceeding, the Commission shall:

a. Issue subpoena duces tecum and subpoena ad testificandum;

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

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

SECTION 34. Orders and Decisions of the Commission. - Any order, resolution, or decisions
of the Commission shall be promulgated promptly, expeditiously, reasonably, and in writing,


and shall state clearly and distinctly the facts and law on which it is based. The Commission
shall publish and make available for public inspection, all decisions and final orders in the
adjudication of contested cases or applications.

SECTION 35. Appeals Procedure and Prohibition Against Injunction. —

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

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

Any act or decision of the Commission shall not be invalidated merely because of a
defect or irregularity in, or in connection with, the appointment or vacancy in the Office
of the Chairperson or any other member of the Commission.

CHAPTER Vil
INTERDEPARTMENTAL RELATIONS
OF THE COMMISSION

SECTION 36. Interface with Other Sector Regulators. ~

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

b. ‘The Commission shall coordinate with the:

1. DOH to ensure that the standards and targets for quality drinking water and
sanitation are consistently complied with;

2. LGUs for development projects relating to water supply and sanitation; and

3. Department of Public Works and Highways for flood control and hamessing
and impounding of water.


SECTION 37. Transfer of Rights and Obligations. The Commission shall, by virtue of thi
Act, be subrogated to all the rights, and assume all the obligations, of the Water Utilities
Division of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of
all special economic zones, and all other government agencies and units whose powers and
functions have been transferred to the Commission.

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

All agencies transferred, subsumed and attached to the Department, shall continue to function
under their present mandates until the six-month transition period mandated under this Act
shall have lapsed. The heads of the affected agencies shall continue to serve until replaced. All
rights and obligations of the affected agencies are hereby transferred to and assumed by the
Commission, and shall be acted upon in accordance with the rules and regulations of the
Commission on Audit and other pertinent laws, rules, and regulations.

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

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

SECTION 39. Water Trust Fund. — There is hereby created a Water Trust Fund in the Bureau
of Treasury. All non-tax revenues, including raw water pricing, permit fees, registration fees,
supervision and regulation enforcement fees, filing fees, testing fees, and other service income
from the use of water resources shall be remitted to the Water Trust Fund. The trust fund shall
be accounted separately from the government's general revenues and shall be automatically
appropriated to the Department. Proceeds from the trust fund shall be utilized for water
development, water sanitation and waste water treatment and management, and water
sustainability programs and projects authorized under this Act: Provided, That a maximum of
ten percent (10%) of the total income generated from raw water extraction shall be given as
share of the concemed local government unit or indigenous peoples (IP) community who own
the specific areas or land where the raw water was sourced.

CHAPTER VIIL
FINAL PROVISIONS


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

SECTION 41. Transitory Provisions. — Performance audit of all water-related agencies and
institutions, including LWUA and water districts, MWSS, MWSS-RO and its concessionaires,
LGU. nun utilities, Tourism Infrastructure and Enterprise Zone Authority, Philippine Economic
Zone Authority, Bases Conversion and Development Authority, Subic Bay Metropolitan
Authority, DILG, and NIA, shall be conducted by the Department.

SECTION 42. Appropriations. — The amount necessary to cover the initial implementation of
this Act shall be charged against the currents year’s appropriations of the agencies and offices
transferred and subsumed by the Department and the Commission in the General
Appropriations Act. Thereafter, such sums as may be necessary for the continued
implementation of the Act shall be included in the annual GAA.

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

SECTION 44. Separability Clause. — If for any reason, any portion or provision of this Act
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect.

SECTION 45. Repealing Clause. —

The following provisions are hereby repealed:

1. Section 3 (h) and Section 12 on the provision with respect to fixing of water
rates and sanitation service fees, Section 3 (n) on the provision with respect
to regulation of waterworks and deep wells, and Section 3 (p) on the
provision with respect to regulation of waterworks and sanitation systems in
privately owned subdivisions of Republic Act 6234 entitled, An Act Creating
The Metropolitan Waterworks And Sewerage System And Dissolving The
National Waterworks And Sewerage Authority, And For Other Purposes, as
amended.

No, 198 otherwise known as the Provincial Water Utilities Act of 1973, as
amended by Letter of Instruction No. 700 - Providing Measures To Control
And Regulate Increase In Water Rates, Letter of Instruction No. 744 -
Relative To Reliable Water Supply At Reasonable Rates In The Countryside
on the, Executive Order No. 124, 30 January 1987 - Reorganization Act of
the Ministry of Public Works and Highways, Executive Order No. 123, 30


b. The following provi

1.

January 1987 - Reorganization Act of }
Development;

inistry of Social Services and

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

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

ns are hereby amended accordingly:

Section 3 paragraph 3 Commonwealth Act No. 146, as amended, othe
known as the Public Service Act pertaining to all cases involving the fixing
of rates;

Section 154, Article V, Chapter 1, Title One, Book I of Republic Act No.
7160, as amended, otherwise known as the “Local Government Code of
1991”, and its implementing rules and regulations on the power of the local
government units to fix the tates of water utilities owned, operated and
‘maintained by them within their jurisdiction is hereby repealed or modified
accordingly.

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

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

Sections 7 and 8 on the adjudication of water pollution cases under Republic
‘ActNo. 3931 entitled, An Act Creating The National Water And Air Pollution
Control Commission, particularly with respect to Section 6 letters ¢, fg, j. k
Presidential Decree 984 entitled, Providing for the Revision of Republic Act
No. 3931, Commonly Known as the Pollution Control Law, and For Other
Purposes;

Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the
“Philippine Clean Water Act of 2004";


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

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

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

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

SECTION 46. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,