1

HOUSE YF REPRESENTATIVES
RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

REC'STR ATION UNIT

BILLS AND INDEX SERVICE
HOUSE BILLNo. 145 (—————_-

SEVENTEENTH CONGRESS |
First Regular Session |

Introduced by REPRESENTATIVE MARIA LOURDES ACOSTA-ALBA

EXPLANATORY NOTE

‘The proposed legislation seeks to adopt an Environmental Assessment System which is
composed of (a) Strategic Environmental Assessment or SEA for policies, plans, and programs;
and (b) Environmental Impact ment (EIA) for specific projects.

This bill is aimed at addressing the gaps in Presidential Decree No. 1586 (“Philippine
Environmental Impact Statement System of 1978”), a broad law that has been subject to very
loose interpretation. This loose interpretation resulted to encroachment on the powers of the
legislative branch and confusion and disagreements among project proponents, agencies, non-
government organization, and stakeholders. This bill is intended to resolve these conflicts.

This bill recognizes that environmental concerns, climate change, and disaster risk
reduction and management must be incorporated in all country's plans, policies and programs,
from as early as conceptualization stage until actual implementation, to ensure the country’s
sustainable development. In view of this, the bill proposes the adoption of Strategic
Environmental Assessment (SEA) for the country’s long and short-term policies, plans, and
programs.

This measure will retain the current EIS System, but it will streamline and rationalize the
system by addressing its limitations and weaknesses. Environmental Impact Assessments (EIAs)
Will still be required for specific projects, particularly those that are considered environmentally
ctitical projects or projects which have potential to cause significant adverse impact on the
environment. Those considered as environmentally critical projects are heavy industries, major
manufacturing industries, major resource extractive industries, major infrastructure projects, and
other similar projects. To encourage entrepreneurship and to simplify the EIA system, the bill
proposes that micro, small and medium-scale projects be governed by local governments. Under


‘ .
the bill, LGUs shall require to integrate environmental safeguards in their local permitting
system and/or complementary environmental assessment policies.

To further streamline the EIA system, the bill also provides for programmatic EIA for
cluster of projects co-located in an area such as industrial estates, export processing zones small
scale mining, livestock, aquaculture and mariculture projects or series of projects subdivided into

several phases or stages, or consisting of several components.

The Philippines is one of the fastest growing economies in Asia. Amid all this. there is a
need to sttike a balance between and among economic growth, sustainable development,
environmental protection, and climate change adaptation. This is consistent with the country’s
various international commitments. most notably the United Nations Millennium Declaration,
the United Nations Framework Convention on Climate Change, and the Hyogo Framework for
Action, among othebs. x

In view of the foregoing, the passage of this bill is eamestly sought:

‘ f

MARIA LOURDES 4 COSTA-ALBA
First District, Bukidnon



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

145

HOUSE BILL NO.

Introduced by REPRESENTATIVE MARIA LOURDES ACOSTA-ALBA

AN ACT
ESTABLISHING A COMPREHENSIVE PHILIPPINE ENVIRONMENTAL
ASSESSMENT SYSTEM

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

Chapter 1
Basic Policies

Section 1. Short Title.— This Act shall be known and referred to as the “Philippine
Environmental Assessment System Ac

Section 2. Declaration of Policy. The State shall adhere to the principles of
sustainable development. To this end, it shall ensure balanced consideration of environmental
protection, human health, and socio-economic development through the assessment of,
significant environmental impacts of policies, plans, programs, or projects, and the
prescription of appropriate protection and control measures. ‘The implementation of this State
policy shall be guided by the following principles:

(a) A proactive approach to integrating environmental considerations into strategic
P pp grating i
decision making, consistent with sustainable development principles;

(b) A systems-oriented and integrated approach in the analysis and solution to
environmental concerns vis-a-vis development program;

(c) Conservation of biological diversity and sustainable use of its components in all

phases of development activity, especially in the context of climate change and
disaster risk reduction;

Page 1 of 14


(d) Promotion of transparency and public participation in environmental assessment
system;

(e) Adoption of systematic decentralization of environmental assessment and
institutionalization of local environmental expertise:
(0) Strengthening environmental monitoring and evaluation mechanisms; and

(g) Establishment of mechanisms to sustain the environmental assessment system.

Section 3. Definition of Terms, — For purposes of this Act, the following terms shall be

defined as follows:

(a) “Agency” shall refer to the relevant government department ,, bureau or office, at
all levels, including government-owned and controlled corporations, with mandate
over the preparation,, evaluation, approval, implementation, or monitoring of a
policy, plan, program or project.

(b) “Bureau” shall refer to the Environmental Management Bureau;

-located Projects” shall refer to projects, or series of projects or a project
subdivided into several phases or stages, and located in a contiguous area;

©

(@) “Cumulative Effects” shall refer to the effects on the environment which result from
the incremental effect of an activity or a set of activities in combination with the
effects of other activities in the area, past and present, regardless of the person or
agency that undertakes such other activitie

(©) “Department” shall refer to the Department of Environment and Natural Resources;

() “Environmental Assessment” shall refer to a process of systematic analysis,
evaluation and management of the potential environmental effects of a policy, plan,
program or project before a decision on the said policy, plan, program or project is
made. The term includes both Strategic Environmental Assessment (SEA) and
Environmental Impact Assessment (EIA):

(g) “Environmental Impact Assessment” shall refer to the process of predicting and
evaluating the likely impacts of a project (including cumulative impacts) on the
environment during construction, commissioning, operation, and abandonment. It
also includes designing appropriate preventive, mitigating, and enhancement
measures addressing these consequences to protect the environment;

Page 2 of 14


(h) “Environmental Impact Assessment Report” shall refer to the document of studies
on the environmental impacts of a project, including the discussion on direct or
indirect consequences upon ecological and environmental integrity. The EIA Report
may vary from project to project but shall contain in every case all relevant
information and details about the proposed projects, including the appropriate
mitigating and enhancement measures to address the identified environmental
impacts.

(i) "Environmental Impact” shaill refer to any change that the policy, plan, program or
project may cause in the environment, including any effect of any such change on
health and socio-economic conditions.

(i) “Environmental Management Plan” shall refer to the details of the preventive,
mitigating, and enhancement measures of a proposed project, including monitoring
and evaluation thereof, and shall form part of the EIA Report.

(k) “Environmentally Critical Project” shall refer to a project or activity that has the
potential for significant adverse environmental impact, as determined by the Bureau
in accordance with the provisions of this Act.

() “Policy, Plan or Program” shall refer to new or modified framework or course of
action, strategies, guidelines or measures proposed by a concerned agency or local
government unit (LGU) to define or implement its mandate under relevant laws.
The term includes those financed and/or co-financed by international organizations
and proposed to the head of an agency or LGU.

(m) “Proponent” shall refer to any person seeking to implement a relevant policy, plan,
program or project. This includes government agencies, government-owned and
controlled corporations, LGUs, and private entities.

(n) “Strategic Environmental Assessment” shall refer to the management/planning tool
for a systematic evaluation of the environmental consequences of a proposed policy,
plan or program in order to ensure that they are fully considered and appropriately
addressed at the earliest stage of decision-making.

TITLE 1
ENVIRONMENTAL ASSESSMENT SYSTEM

Chapter 1

General Provisions
Section 4. Environmental Assessment System. — The Environmental Assessment
System (EAS) is hereby established which shall cover Strategic Environmental Assessment
purposes of identifying, analyzing, evaluating, and managing the direct and indirect impacts
of a policy, plan, program, or project on the environment, health and socio-economic issues,

Page 3 of 14


and ensuring that these impacts are addressed by appropriate environmental protection and
control measures. It shall help identify the most practicable alternatives for achieving positive
outcomes and minimizing potentially adverse effects of policies, plans, programs, and
projects

Section 5. Coverage of the Environmental Assessment System (EAS). ~ any policy,
plan, program or project which has the potential for significant adverse impact on the
environment shall be covered by the EAS.

Chapter 2
Strategic Environmental Assessment

Section 6. Applicability of the SEA. ~ The SEA shall be required for a proposed policy,
plan, or program when all of the following conditions exist:

(a) The proposal relates, but not limited, to agriculture, forestry, fisheries, energy,
health, resource extraction, infrastructure, transport, waste management, water
management, tourism, coastal zone management, national, regional provincial and
municipal/city development planning or land use; and

(b) Implement of the proposal may result in significant adverse environmental impact,
including health and socio-economic impact.

Provided, that, SEA shall not be required for policy, plan, or program for proposals
involving national security, as declared by the President of the Philippines. Provided, further,
that, within five (5) years from the date of effectivity of this Act, SEA shall apply to the
following:

(a) National development plans, policies, and programs, such as the Philippine
Development Plan;

(b) Sectoral plans, policies, and programs, such as those relating to agriculture
livestock, environment and natural resources, energy, infrastructure and
industries;

(©) Subnational development plans and programs, such as regional, provincial and
local development and land use plans, including those formulated by the
Mindanao Development Authority, Palawan Council for Sustainable

Development, and other similar bodies;

(d) Policies involving biosafety, genetically modified organism (GMO), and
bioprospecting; and

(e) Indigenous peoples’ development plans.

Page 4 of 14


Section 7. Undertaking SEA. — the proponent shall conduct the SEA as an integral part
of the formulation of the policy, plan, or program for the purpose of identifying the most
practicable alternatives for achieving positive outcomes and minimizing potentially adverse
effects of policy, plan, or programs. SEA may be carried out corresponding to the stages of
policy, plan or program formulation and may involve sequential assessments of various
components of the policy, plan, or program.

The SEA to be undertaken shall specify, but not be limited to, the following
information:

(a) Description of the policy, program, or plan in summary, and process of organization

to implement SEA;

(b) Scope of the SEA study and the main environmental issues related to the policy,
program, or plan, specifying environmental impacts and cumulative effects to be
considered,, including past environmental issues and relevant trends in the state of
the environment;

(©) Assessment of the policy, program, or plan vis-a-vis environmental and sustainable

development considerations;

(d) Where applicable. Climate projections prepared by the Philippine Atmospheric,
Geophysical, and Astronomical Services Administration (PAGASA) shall be used
in the conduct of relevant modeling, studies, and assessment, as may be required;

(©) Assessment of the policy, program, or plan to disaster risk vulnerability, and its
capacity to adapt to climate change; and

() Recommended options to prevent or mitigate any significant adverse environmental
impacts resulting from the implementation of the policy, plan, or program, including
the focus of any subsequent EIAs, and measures for monitoring environmental
aspects of its implementation

Section 8. Inter-agency SEA Council. ~ There is hereby created an Inter-agency SEA
Couneil (IASC) composed of the following:

(a) Secretary of the Department of Environmental and Natural Resources, Chair;
(b) Secretary of the Department of Science and Technology, Vice Chair;

(c) Secretary of Socioeconomic Planning, Member;

(d) Secretary of Department of Interior and Local Government, Member;

(e) Secretary of the Department of Agriculture, Member;

(1) Secretary of the Department of Public Works and Highways, Member;

(g) Secretary of the Department of Energy, Member;

(h) Secretary of the Department of Transportation and Communications, Member;
(i) Secretary of the Department of Health, Member;

()) Secretary of the Department of Tourism, Member;

Page 5 of 14


(k) Chairman of the Housing and Land Use Regulatory Board, Member:
(1) Chairman of the National Commission on Indigenous Peoples, Member;
(m)One representative from the Local Government Unit, Member;

(n) One representative from the environmental NGOs, Member; and

(0) One representative from the business sector, Member.

Representatives of the environmental NGOs and business sector shall be appointed by
the President from a list of nominees submitted by their respective sectors, they shall serve
for a term of six (6) years without reappointment, unless their representation is withdrawn
and/or replaced by the concemed sector, in which case, the new appointee shall serve only for
the unexpired term of the predecessor.

Only the ex-officio members of the IASC shall appoint a qualified permanent
representative who shall hold a rank of no less than an Undersecretary or its equivalent.

Section 9. Secretariat. — The Department of Environment and Natural Resources shall
act as secretariat of the IASC, and shall be the official repository of all documents and

records thereof.

Section 10. Powers and Functions of the IASC, ~ The IASC shall have the following
powers and functions:

(a) Ensure the mainstreaming of SEA into policies, plans and programs;
() Formulate implementing rules and regulations on SEA pursuant to this Act,
including the provision for the progressive implementation of SEA n accordance

with Section 6 of this Act;

(c) Exercise policy coordination to ensure the attainment of the goals and objectives set
in this Act:

(d) Recommend legislation, policies, strategies, programs on and appropriating for SEA
and other related activities;

(e) Create an enabling environment that shall promote broader multi-stakeholder
participation;

(f) Formulate and update guidelines for determining and facilitating the provision of
technical assistance for their implementation and monitoring:

(g) Ensure compliance of all concerned agencies with this Act;

(h) Facilitate capacity building for SEA implementation and monitoring; and

Page 6 of 14


(i) Oversee the dissemination of information on SEA.

Chapter 2
Environmental Impact.Assessment (ELA) for Specific Projects

Section 11. Applicability of EIA, — Environmentally critical projects, as determined by
the Bureau in accordance with this Act, shall undertake an EIA for specific projects. These
critical projects are presumed to have the potential for significant adverse impact on the
environment. For purposes of determining critical projects, the Bureau shall consider the
nature of the project and its potential to cause significant adverse environmental impacts.
Critical projects shall include, but not limited to, heavy industries, major manufacturing,
industries, major resource-extractive industries, major infrastructure projects, and other
similar projects.

Micro-, small-, and medium-scale projects and other similar activities shall be governed
by the concerned LGUs, which shall integrate environmental safeguards in their local
permitting system and/or complementary environmental assessment policies.

Environmentally critical projects, the impact of which is specifically addressed in a
SEA, may be required by the Bureau to undertake an appropriate environmental assessment
study.

Existing projects, which are deemed critical under his Act but operating without an
Environmental Compliance Certificate (ECC) required under Sec. 4 of PD 1586, shall be
given three (3) tears from the date of the effectivity of this Act within which to comply with
the provisions of this law.

Section 12. Review of EIA. The EIA Report shall be reviewed by a multi-disciplinary
team of independent experts convened by the Bureau for that purpose. The team shall make a
report of its findings and recommendation on the issuance or non-issuance of the Certificate
of Proponent’s Environmental Commitment (CPEC). The cost of such review shall be
financed by the proponent through a fund manager, whether government or private.

Section 13. Decision on the EIA, — After a review of the EIA Report and the
recommendations of the EIA Review Team, the Bureau may issue a Certificate of
Proponent’s Environmental Commitment (CPEC) certifying that the proposed project has
integrated environmental considerations into its overall project design and management, that
the assessment is technically sound at the feasibility study stage, and that the proposed
preventive, mitigating, and enhancement measures are appropriate. The CPEC shall also
certify that the proponent has demonstrated its commitment to implement the approved
Environmental Management Plan (EMP) for its proposed project, as planned, and the
corresponding Monitoring and Evaluation.

Page 7 of 14


The CPEC shall be limited to the results of the assessment of the environmental impacts
of the proposed project. It shall not, in any manner, exempt the proponent from securing
other government permits and clearance required by other laws, nor shall it be construed as
resolving issues within the mandate of other government agencies, such as those relating to
land ownership and possession rights.

All concerned national government agencies and local government units shall consider
the CPEC and relevant EIA documents in their decision-making process.

Section 14. Environmental Safeguards for non-Environmentally Critical Projects. ~
Proponents of projects that are not covered pursuant to the preceding sections may be
required by the Bureau to implement environmental safeguards. The Bureau shall establish an
evaluation system therefor.

Section 15. EIA for Co-located Projects. — The Department shall require programmatic
EIA for projects or series of projects subdivided into several phases or stages, or consisting of
several components, or a cluster of projects co-located in an area, such as, but not limited to,
industrial estates, export processing zones, small-scale mining, livestock, aquaculture, and
mariculture projects.

The EIA requirements and conditions for co-located projects under the EAS shall be
guided by an assessment of the cumulative impacts and carrying capacity as may be
determined from ecological profiles of the area.

The CPEC under this provision shall be issued by the Bureau.

Section 16, Financial Guarantee Mechanism, ~ As part of the CPEC requirements, the
Bureau may require project proponents to put up a financial guarantee mechanism to respond
to the need for clean-up or rehabilitation of areas that nay be damaged, whether directly or
indirectly, or through occurrences, anthropogenic or otherwise, by a project, during and after
its operation.

Provisions for financial liability shall ensure just and timely compensation for any
adverse effects which project implementation may directly or indirectly cause on the
environment or the community.

The instrument acceptable for compliance with this provision are trust funds,
environmental insurance, cash funds, financial test mechanism, self-insurance and other
guarantee instruments. The choice of guarantee mechanisms, or of combinations thereof,
shall depend primarily on: a) the probability and magnitude of the risks involved, as culled
from new and existing information and determined through environmental and health risk
assessment, and b) the financial capability of the proponent; Provided, that such proponent

Page 8 of 14


shall show proof of compliance with the requirement for contingent liability by furnishing the
Department with evidence of availment of such mechanism,

Section 17. Accreditation of Preparers and Reviewers. — The Bureau shall establish a
system of accreditation for preparers and reviewers of EIA, which shall take into
consideration their competence, expertise, track record, integrity and independence. The
Bureau may delegate the accreditation process to a third party, government or private

No employee of the Department or Bureau shall, in any manner whatsoever, directly or
indirectly, participate in the preparation of the EIA.

Section 18, Non-Liability to the Authenticity of EIA Documents. — The documents that
may be required by the Bureau for the conduct of an EIA shall be used solely to determine
the scope and potential impacts of proposed projects on the environment. The Bureau shall
not be liable to any allegations or conclusions of fraud, falsification, or misrepresentation
attending the submitted documents, Any issues or disputes that may arise from such
documents shall be resolved in appropriate forums, courts, or tribunals.

Section 19 Consultation and Public Participation in the EIA. ~ All proponents of
environmentally critical projects shall, at the earliest stage of the EIA process, inform and
consult the concerned local government units and communities that will be affected by the
proposed project to ensure that environmentally relevant concerns are taken into
consideration in the EIA stud and in the formulation of the EMP.

It shall be done through public hearing, whenever appropriate, which is. publicly
announced and where all valid comments are heard and considered.

Section 20. Multi-partite Monitoring Team and Environmental Monitoring Fund.
Multi-partite monitoring teams (MMTs) shall be organized to encourage public participation,
promote greater stakeholder vigilance, and provide appropriate check and balance
mechanisms in the monitoring of projéct implementation.

The MMTs shall be composed of representatives of the relevant national agencies local
government units. Non-governmental organizations, and other stakeholders in the affected
communities. The government representatives shall be selected by the Bureau based on the
relevance of theit mandates, while those from non-governmental organizations and affected
communities shall be selected from among themselves in a process facilitated by the
concemed LGU and certified by the Bureau.

MMTs can be project-based or clustered by province/municipality or by sector. Such
clustering shall be accomplished upon the recommendation of any of the members of the
MMTs comprising the cluster and shall be convened with the assistance of the bureau and the
concerned LGU, Cluster members shall agree on a manual of operations, a fund manager, and
scheme for shared monitoring.

Page 9 of 14


The proponent shall establish an Environmental Monitoring Fund (EMF) to support the
activities of the MMT. The Bureau shall promulgate the rules for the administration and
management of the EMP: Provided, that, in no case shall such fund be used other than for the
purpose for which it was established.

TITLE IL
MISCELLANEOUS PROV!

IONS

Chapter 1
Fines and Penalties

Section 21. Sanctions for Violations. ~ Any environmentally critical project which
shall operate without the required CPEC shall face closure, suspension of development or
construction, or cessation of operations until such time that proper environmental safeguards
are put in place and the necessary CPEC has been issued; Provided, that, the project
proponent shall be fined an amount not less than One Hundred Fifty Thousand Pesos
(Php100,000.00) but not more than Twenty Million Pesos (Php20,000,000.00) depending on
the magnitude of the environmental risks and upon the final decision of the proponent firm
shall be held criminally liable and shall be imprisoned for a period not less than two (2) years
but not more than ten (10) years, at the discretion of the Court.

Any project proponent found in violation of the EMP shall be imposed a fine in the
amount of not less than Fifty Thousand Pesos (Php50,000.00) for every violation, depending
upon the type and impact of the violation, but not more than Ten Million Pesos
(Php10,000,000.00) per violation, plus cost of damages, at the discretion of the Bureau.
Provided, that the Bureau may order the closure, suspension of development or construction,
of cessations of operations if the violation of the EMP is continued.

Chapter 2
Institutional Arrangement

Section 22. Agencies Responsible in the Implementation of the Act. ~ Unless
otherwise provided by this Act, the Department shall serve as the primary agency responsible
for the implementation of the EAS. It may secure the assistance of environmental units of
other government agencies, academic and research institutions, and environment
professionals in undertaking its responsibilities under this Act.

For this purpose, an environmental unit shall be established and/or strengthened in each
concerned government agency. Furthermore, it shall be the responsibility of all concerned
government agencies to share information or data necessary to effectively evaluate reports
required pursuant to this Act.

Concemed government agencies shall establish appropriate permanent organizational
structures systems to address the requirements of the EAS

Page 10 of 14


Section 23. Establishment of an Environmental Assessment System Division. — In
order to effectively implement the provisions of this Act, an Environmental Assessment
System (EAS) Division is hereby established within the Bureau.

Section 24. Decentralization and Devolution of Functions. — The Department shall,
within one (1) year from the effectivity of this Act, develop guidelines for the
decentralization of functions of the Bureau under this Act to the Regional Offices.

The Department, in coordination with the Department of Interior and Local
Government (DILG), shall, within two (2) years from the effectivity of this Act, provide
technical resources and leadership to assist LGUs and entities in acquiring capacity and
capacity and expertise for rational and effective devolution of functions under the EAS. The
devolution of functions shall be made afier the concerned LGUs and entities have been
assessed to be technically capable of such functions.

Section 25. Local Capacity-Building in Environmental Assessment System. — the
Department, through the Bureau, shall, in coordination with the DILG, lead the development
and implementation of a national capacity building program in environmental assessment. To
ensure the rational devolution of functions mandated in Section 24 hereof, the program shall
be operational within two (2) years from the effectivity of this Act.

The national program for capacity building shall identify target entities as well as
functions for devolution and prepare the target entities for the local implementation of the
EAS or its components in accordance with the objectives of this Act.

Section 26. Knowledge Management System. — The Bureau shall establish a database
management system for purposes of gathering, keeping, disseminating and updating all
information relative to the implementation of the EAS. As part of the database management
system, the Bureau shall ereate a public registry of all CPECs issued.

Section 27. Public Disclosure - All documents generated as part of the Each shall be
accessible to the public upon request made during office hours, except those information
deemed protected under Republic Act No, 8293, otherwise known as the Intellectual Property
Code of the Philippines: Provided that, the executive summary of the SEA, EIA, EMP, and
CPEC shall likewise be disclosed by the Bureau and proponents to the public through the
internet.

Chapter 3
Actions

Section 28. Administrative Action. ~ Without prejudice to the right of any affected
person to file an administrative action, the Department shall, on its own instance or upon
verified complaint by any person, institute administrative proceedings against any person

Page 11 of 14


who violates the provisions of this Act and the orders, rules and regulations promulgated
pursuant thereto.

Section 29. Citizen Suits. — For purposes of enforcing the provisions of this Act or its
implementing rules and regulations, any citizen may file an appropriate civil or criminal
action in the proper courts against

(a) Any person who violates or fails to comply with the provisions of this Act, its
implementing rules and regulations, or orders issued pursuant thereto; or

(b) The Department or other implementing agencies with respect to orders, rules and
regulations issued inconsistent with this Act; and

(©) Any public officer who willfully or grossly neglects the performance of an act
specifically enjoined as a duty by this Act or its implementing rules and regulations;
or abuses his authority in the performance of his duty; or in any manner, improperly
performs his duties under this Act or its implementing rules and regulations.

Provided, however, that, no citizen suit can be filed until after a thirty (30)-day notice
has been taken thereon,

The court shall exempt such action from the payment of filing fees, and shall likewise,
upon prima facie showing of the non-enforcement or violation complained of, exempt the
plaintiff from the filing of an injunction bond for the issuance of a preliminary injunction.

Within thirty (30) days, the court shall make a determination if the complaint herein is
malicious and/or baseless, and shall accordingly dismiss the action and award attorney’s fees
and damages.

Section 30. Independence of Action. — The filing of an administrative suit against
such persor/entity does not preclude the right of any other person to file any criminal or civil
action. Such civil action shall proceed independently

Section 31. Suits and Strategic Legal Actions Against Public Participation and the
Enforcement of this Act. ~ Where a suit is brought against a person who filed an action as
provided in Section 28 of this Act, or against any person, institution or government agency
that implements this Act, it shall be the duty of the investigating prosecutor or the court, as
the case may be, to immediately make a determination not exceeding thirty (30) days whether
said legal action has been filed to harass, vex, exert undue pressure or stifle such legal
recourses of the person complaining of or enforcing the provisions of this Act. Upon
determination thereof, evidence warranting the same, the court shall dismiss the case and
award attorney’s fees and double damages.

Page 12 of 14


This provision shall also apply and benefit public officers who are sued for acts
committed in their official capacity, there being no grave abuse of authority, and done in the
course of enforcing this Act.

Chapter 4
Establishing of an EAS Management Fund

Section 32. Environmental Revolving Fund. — The Environmental Revolving Fund
(ERF) created under Presidential Decree No. 1586 shall remain to be operational. It shall be
used primarily for defraying administrative expenses, equipment purchase or leases and other
program costs directly incurred in the review, assessment and monitoring of the EAS. The
ERF may be sourced from donations; endowments and grants in the form of contributions
Such endowments shall be exempt from income or gift taxes and all other taxes, charges or
fees imposed by the government or any political subdivision, instrumentality or agency. It
shall also include funds to be provided by proponents for the review of specific projects. All
income likewise generated from fees, fines and penalties directly related to the
implementation of the EAS shall accrue to the ERF and may be utilized directly by the
Department for the above purposes.

All fund transactions shall, however, be subject to the usual auditing procedures in
accordance with existing laws.

Section 33. Appropriations. — An amount of One hundred million pesos
(P100,000,000.00) shall be appropriated for the initial implementation of this Act.

Section 34, Transitory Provision. ~ Non-Highly Urbanized Cities, and Third, Fourth,
Fifth, and Sixth Class Municipalities shall be given a five (5)-year grace period within which
to comply with the provisions of this Act on SEA.

Section 35. Implementing Rules and Regulations. ~ Unless otherwise provided in
this Act, the Department, in coordination with other concerned agencies, shall promulgate the
implementing rules and regulations of this Act, within one (1) year after its effectivity.

The Department and the IASCS, in coordination with other concerned government
agencies, shall undertake such review and updating of the implementing guidelines of the
EAS every two (2) years thereafter.

Chapter Five
Final Prov

ons
Section 36. Separability Clause. - Should any provision herein be subsequently

declared unconstitutional, the same shall not affect the validity or legality of the other
provisions of this Act.

Page 13 of 14


Section 37. Repealing Clause. ~ Presidential Decree No. 1586, except Section 10
thereof, Presidential Proclamation No. 2146, Executive Order No. 803, and Office of the
President Administrative Order No. 42, series of 2002 are hereby repealed. All laws, orders,
rules and regulations or any part thereof which are inconsistent with the provisions of this Act
are hereby amended or modified accordingly.

Section 38. Date of Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the official Gazette or in two (2) newspaper of general circulation.

Approved,