Philippine Environmental Assessment System Act

Senate 2g5/ Offier of the atretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) 25 AUG 27 A9:15 SENATE RECEIVED BY: S. No. 1251 Introduced by Senator Loren Legarda AN ACT ESTABLISHING A COMPREHENSIVE PHILIPPINE ENVIRONMENTAL ASSESSMENT SYSTEM, CREATING THE NATIONAL ENVIRONMENTAL PROTECTION AGENCY AND ALLOCATING FUNDING THEREFOR EXPLANATORY NOTE The proposed legislation seeks to revise, update, and strengthen the country's Environmental Assessment System by institutionalizing three complementary mechanisms: (a) Strategic Environmental Assessment (SEA) for policies, plans, and programs; (b) Environmental Impact Assessment (EIA) for specific projects; and (c) Health Impact Assessment (HIA) under the Universal Health Care Act. This measure addresses long-standing gaps in Presidential Decree No. 1151, or the "Philippine Environmental Policy," and Presidential Decree No. 1586, or the "Philippine Environmental Impact Statement System of 1978." It also responds to the bureaucratic challenges in project approvals and seeks to rationalize the treatment of environmentally critical projects. The new framework aims to ensure a more coherent, transparent, and science-based approach in balancing socio-economic development and environmental protection. The bill underscores the need to integrate environmental considerations from the earliest stages of planning through implementation, while aligning development decisions with the Philippine Development Plan. It mandates the identification and adoption of the most environmentally sustainable alternatives capable of meeting

national demands and priorities, and it institutionalizes the use of SEA to provide a strategic framework for sound decision-making. Moreover, the bill affirms the country's commitment to its international obligations by aligning national policies and programs with global frameworks such as the United Nations Sustainable Development Goals, the Paris Agreement on Climate Change, the Sendai Framework for Disaster Risk Reduction, and the Kunming- Montreal Global Biodiversity Framework, among other relevant agreements. In view of the foregoing, the passage of this bill is earnestly sought. LOREN LEGARDA

sociale Difice of the accretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session AUG 27 A9:15 SENATE VED BY S. No. 1251 Introduced by Senator Loren Legarda AN ACT ESTABLISHING A COMPREHENSIVE PHILIPPINE ENVIRONMENTAL ASSESSMENT SYSTEM, CREATING THE NATIONAL ENVIRONMENTAL PROTECTION AGENCY AND ALLOCATING FUNDING THEREFOR Be it enacted by the Senate and the 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

5 "Philippine Environmental Assessment System Act."

Sec. 2. Declaration of Policy. - The State shall adhere to the principles of

7 sustainable development. To this end, it shall ensure balanced consideration of 8 environmental protection, human health, and socio-economic development through 9 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 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 programs;

(c) Conservation of biological diversity and the sustainable use of its components in all phases of development activity, especially in the context of climate change and disaster risk reduction; (d) Promotion of transparency and public participation in environmental assessment system; (e) Adoption of a systematic decentralization framework for environmental assessment and institutionalization of local environmental expertise; (f) Strengthening environmental monitoring and evaluation mechanisms; and (g) Establishment of mechanisms to sustain the environmental assessment system.

Sec. 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 which shall transition to the National Environmental Protection Agency within five (5) years from the passage of this Act; (c) "Co-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; (d) "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 activities; (e) "Department" shall refer to the Department of Environment and Natural Resources; (f) "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; (h) "Environmental Impact Assessment (EIA) Report" shall refer to the document of studies on the environmental impacts of a project, including the discussions on direct and 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 project, including the appropriate mitigating and enhancement measures to address the identified environmental impacts; (i) "Environmental Impact" shall 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; (1) "Policy, Plan or Program" shall refer to new or modified framework or courses 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;

Assessment" shall refer to the (n) "Strategic Environmental 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 I ENVIRONMENTAL ASSESSMENT SYSTEM CHAPTER 1 GENERAL PROVISIONS

Sec. 4. Environmental Assessment System. - The Environmental Assessment

11 System (EAS) is hereby established which shall cover Strategic Environmental 12 Assessment (SEA) and Environmental Impact Assessment (EIA). The EAS shall be 13 implemented for 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, and ensuring that these impacts are addressed by 16 appropriate environmental protection and control measures. It shall help identify the 17 most practicable, benign, and ecologically restorative alternatives for achieving positive outcomes and minimizing potentially adverse effects of policies, plans, programs, and projects.

Sec. 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

Sec. 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 is 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) Implementation 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 7 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 9 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; (c) 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.

Sec. 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 the policy, plan or program. 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; (c) 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; (e) Assessment of the policy, program, or plan to disaster risk vulnerability, and its capacity to adapt to climate change; and (f) 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.

Sec. 8. Inter-Agency SEA Council. - There is hereby created an Inter-Agency

Strategic Environmental Assessment Council (IASC) composed of the following: (a) Secretary of the Department of Environment and Natural Resources, Chairperson; (b) Secretary of the Department of Science and Technology, Vice Chairperson; (c) Secretary of the Department of Economy, Planning, and Development, Member; (d) Secretary of the Department of the Interior and Local Government, Member; (e) Secretary of the Department of Agriculture, Member; (f) 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, Member; (i) Secretary of the Department of Health, Member;

(i) Secretary of the Department of Tourism, Member; (k) Secretary of the Department of Human Settlements and Urban Development, Member; (l) Chairperson of the National Commission on Indigenous Peoples, Member; (m) One (1) representative from the League of Provinces of the Philippines, Member; (n) One (1) representative from the League of Cities of the Philippines, Member; (0) One (1) representative from the environmental non-governmental organizations, Member; and (p) One (1) representative from the business sector, Member. Representatives from the environmental NGOs and the 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 concerned sector, in which case the new appointee shall serve only the unexpired term of the predecessor. Ex-officio members of the IASC may designate a permanent representative with 19 a rank not lower than Undersecretary or its equivalent. In coordination with the Department of Economy, Planning, and Development (DEPDev), the Council shall ensure the mainstreaming of SEA in national, sectoral, regional, and local development plans, and comprehensively determine the expected outcomes of several development scenarios to inform the Philippine Development Plan, local development plans, and area development plans.

Sec. 9. Secretariat. - The Department of Environment and Natural Resources

(DENR) shall act as the secretariat of the IASC and shall be the official repository of all documents and records thereof.

Sec. 10. Powers and Functions of the IASC. - Aside from the primary function

as stated in Section 8, final paragraph, the IASC shall have the following powers and functions: (a) Ensure the mainstreaming of SEA into policies, plans and programs;

(b) Formulate implementing rules and regulations on SEA pursuant to this Act, including the provisions for the progressive implementation of SEA in 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 appropriations 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 (i) Oversee the dissemination of information on SEA. 0) Report annually to the President and the public on the expected environmental impact of the PDP, especially on the cumulative and synergistic impacts of public works as well as the ecosystems from which materials for these works are derived. CHAPTER 3 22 ENVIRONMENTAL IMPACT ASSESSMENT (EIA) FOR SPECIFIC PROJECTS

Sec. 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, resource-extractive industries, major infrastructure projects, and other similar projects.

All projects not covered above shall be governed by the concerned LGUs, and 2 existing LGU policies which shall integrate environmental safeguards which 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 6 assessment study. Existing projects, which are deemed critical under this Act but operating without an Environmental Compliance Certificate (ECC) required under Sec. 4 of PD 1586, shall be given three (3) years from the date of the effectivity of this Act within which to 10 comply with the provisions of this law. After such time, the State shall undertake the 11 EIA Report and charge the project owner for the services.

Sec. 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. 14 The team shall make a report of its findings and recommendation on the issuance or 15 non-issuance of the Certificate of Proponent's Environmental Commitment (CPEC). 16 The cost of such review shall be financed by the proponent through a fund manager, 17 whether government or private.

Sec. 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 feasible, and that the proposed preventive, mitigating, and enhancement measures are appropriate. The CPEC shall also certify that the proponent has demonstrated its commitment to implementing the approved Environmental Management Plan (EMP) for its proposed project, as planned, and the corresponding Monitoring and Evaluation. 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 2 consider the CPEC and relevant ElA documents in their decision-making process. The CPEC shall supersede and replace the ECC previously required under 4 Presidential Decree No. 1586. All existing ECCs shall remain valid until their expiration and shall thereafter be converted into CPECs upon renewal. All references to ECCS in 6 other laws, rules, and regulations shall henceforth be construed as referring to CPECs.

Sec. 14. Environmental Safeguards for non-Environmentally Critical Projects. -

8 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 10 establish an evaluation system therefore.

Sec. 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.

Sec. 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 may be damaged, 23 whether directly or indirectly, or through occurrences, anthropogenic or otherwise, by 24 a project, during and after its operation. Provisions for financial liability shall ensure just and timely compensation for 26 any adverse effects which project implementation may directly or indirectly cause on the environment or the community. The instruments acceptable for compliance with this provision are trust funds, 29 environmental insurance, cash funds, financial test mechanism, self-insurance, and other guarantee instruments. The choice of guaranteed 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

1 through environmental and health risk assessment, and b) the financial capability of 2 the proponent; Provided, that such proponent shall show proof of compliance with the requirement for contingent liability by furnishing the Department with evidence of availment of such mechanism.

Sec. 17. Accreditation of Preparers and Reviewers. - The Bureau shall establish

6 a system of accreditation for preparers and reviewers of EIA, which shall take into 7 consideration their competence, expertise, track record, integrity, and independence. 8 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, 11 directly, or indirectly, participate in the preparation of the EIA.

Sec. 18. Liability in the Review of Submitted Documents. - The Bureau, and

later, the NEPA shall not be liable for fraud, falsification, or misrepresentation in documents prepared and submitted by project proponents: Provided, That this shall not exempt any public officer from liability for gross negligence, willful misconduct, or bad faith in the review and evaluation of such documents.

Sec. 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 study 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. For projects located within ancestral domains, Free, Prior, and Informed Consent (FPIC) shall be required in accordance with Republic Act No. 8371, otherwise known as the Indigenous Peoples' Rights Act of 1997

Sec. 20. Multi-partite Monitoring Team and Environmental Monitoring Fund. -

28 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 project implementation. The MMTs shall be composed of representatives of the relevant national 32 agencies, local government units, non-governmental organizations, and other

1 stakeholders in the affected communities. The government representatives shall be 2 selected by the Bureau based on the relevance of their mandates, while those from non-governmental organizations and affected communities shall be selected from among themselves in a process facilitated by the concerned LGU and certified by the Bureau. MMTs can be project-based or clustered by province/municipality or by sector. 7 Such clustering shall be accomplished upon the recommendation of any of the 8 members of the MMTs comprising the cluster and shall be convened with the 9 assistance of the Bureau and the concerned LGU. Cluster members shall agree on a 10 manual of operations, a fund manager, and scheme for shared monitoring. 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 EMF: Provided, that, in no case shall such fund be used other than for the purpose for which it was established. TITLE II MISCELLANEOUS PROVISIONS CHAPTER 1 FINES AND PENALTIES

Sec. 21. Sanctions for Violations. - Any environmentally critical project which

operates without the required CPEC shall be subject to immediate 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. The project proponent shall, in addition, be liable to pay an administrative fine of not less than Five Million Pesos (₽5,000,000.00) but not more than Two Hundred Million Pesos (P200,000,000.00), or up to ten percent (10% of the total project cost or the assessed value of environmental damage, whichever is higher, as determined by the Bureau. For continuing violations, the proponent shall likewise be liable to an additional fine of Five Hundred Thousand Pesos (P500,000.00) for each day of 29 continued operation without a valid CPEC.

In cases where actual environmental damage has occurred, the project 2 proponent shall further be liable for the full cost of rehabilitation, restoration, and 3 compensation. The extent of such damage and its monetary value shall be determined by the National Environmental Protection Agency using scientific assessment methods, 5 ecological valuation, and natural capital accounting in accordance with Republic Act 6 No. 11995, otherwise known as the Philippine Ecosystem and Natural Capital 7 Accounting System (PENCAS) Act. Such liability shall include, but not be limited to: (a) restoration or replacement of degraded ecosystems to their original or improved condition; (b) compensation for the loss of biodiversity, ecosystem services, and livelihoods of affected communities; and (c) damages payable to affected persons as adjudicated by the courts. Any project proponent found in violation of the Environmental Management Plan (EMP) shall be liable to pay an administrative fine of not less than One Million Pesos (P1,000,000.00) but not more than Fifty Million Pesos (P50,000,000.00) for every violation, depending upon the type, frequency, and impact of the violation, plus the full cost of environmental rehabilitation and compensation for damages as determined by the Bureau. The Bureau may likewise order the closure, suspension of development or construction, or cessation of operations if violations of the EMP are continuous or willful. Any project proponent who willfully and repeatedly violates an approved Environmental Management Plan shall, upon conviction, be liable to imprisonment of not less than two (2) years but not more than six (6) years, without prejudice to the imposition of administrative fines and closure orders under this Act. The chief operating officer, chief executive officer, or other responsible officers of the proponent entity shall be held criminally liable and, upon conviction, shall suffer imprisonment of not less than two (2) years but not more than ten (10) years, without prejudice to civil or administrative liabilities that may also be imposed under this Act and other applicable laws.

The obligations to pay fines, shoulder rehabilitation costs, and compensate 2 affected persons and communities shall be joint and solidary upon the project proponent and its responsible officers. CHAPTER 2 INSTITUTIONAL ARRANGEMENT

Sec. 22. Agencies Responsible for the Implementation of the Act. - Unless

otherwise provided by this Act, the Department shall serve as the primary agency 8 responsible for the implementation of the EAS. It may secure the assistance of 9 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. Concerned government agencies shall establish appropriate permanent 17 organizational structures and systems to address the requirements of the EAS.

Sec. 23. Establishment of the National Environmental Protection Agency. - In

order to effectively implement the provisions of this Act, there is hereby created a 20 National Environmental Protection Agency (NEPA) that shall serve as the primary regulatory and enforcement body for the Environmental Assessment System. NEPA shall report to the Inter-Agency SEA Council (IASC) and the President. The Bureau shall be given a period of five (5) years within which to transition into the NEPA. During this transition period, the Department of Environment and Natural Resources, through the Environmental Management Bureau, shall continue to 26 exercise regulatory functions under this Act until such functions are fully transferred 27 to NEPA in accordance with a Transition Plan approved by the President. Upon full transition, NEPA shall assume regulatory and enforcement authority under this Act, while the Department of Environment and Natural Resources shall retain its mandate for conservation, resource management, and policy support.

NEPA shall be headed by a Director-General with the rank, privileges, and 2 emoluments of an Undersecretary, who shall be appointed by the President of the Philippines. Until such time that the NEPA is fully constituted and operational in accordance with the Transition Plan approved by the President, all powers, functions, and responsibilities vested in NEPA under this Act shall be exercised by the DENR, through 7 the EMB. All orders, issuances, permits, certificates, and other regulatory acts issued by the EMB during this transition period shall have the same force and effect as if issued by NEPA. Upon completion of the transition, the EMB shall be absorbed into NEPA.

Sec. 24. Natural Capital Accounting. - The Philippine Statistics Authority, the

Department of Economy, Planning, and Development (DEPDev), and the Department of Environment and Natural Resources shall ensure that all assessments conducted under this Act are aligned with the Philippine Ecosystem and Natural Capital Accounting System Act (Republic Act No. 11995). The natural capital accounts shall be used as a basis for evaluating Environmental Impact Assessments and Strategic Environmental Assessments.

Sec. 25. Health Impact Assessment. - For policies, plans, programs, or projects

with significant public health implications, a Health Impact Assessment (HIA) shall be undertaken as an integral component of the Strategic Environmental Assessment (SEA) or Environmental Impact Assessment (EIA), in accordance with Republic Act No. 11223, otherwise known as the "Universal Health Care Act." The Department of 23 Health (DOH), in coordination with NEPA, shall issue the guidelines for the conduct of 24 HIA.

Sec. 26. Decentralization and Devolution of Functions. - The Department, in

consultation with NEPA and the Department of the Interior and Local Government (DILG), shall, within one (1) year from the effectivity of this Act, develop guidelines for the decentralization of functions under the Environmental Assessment System (EAS). Devolution of functions to local government units shall apply only to non- environmentally critical projects, subject to certification by NEPA that the concerned LGU possesses adequate technical capability and institutional capacity.

1 Environmentally critical projects shall remain under the direct regulatory jurisdiction 2 of NEPA. The Department, in coordination with the Department of Interior and Local 4 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 6 and expertise for rational and effective devolution of functions under the EAS. The 7 devolution of functions shall be made after the concerned LGUs, and entities have been assessed to be technically capable of such functions.

Sec. 27. Local Capacity-Building in Environmental Assessment System. - The

10 Department, through the Bureau and, later, NEPA, 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 26 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.

Sec. 28. Knowledge Management System. - The Bureau, and later the NEPA,

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, and later the NEPA, shall create a public registry of all CPECs issued.

Sec. 29. Public Disclosure. - All documents generated as part of the EAS shall

be accessible to the public upon request made during office hours, except that 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

Sec. 30. 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 who violates the provisions of this Act and the orders, rules and regulations promulgated pursuant thereto.

Sec. 31. Citizen Suits. - For purposes of enforcing the provisions of this Act or

7 its implementing rules and regulations, any citizen may file an appropriate civil or 8 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 (c) 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. 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. Citizen suits under this Act shall be governed by the Rules of Procedure for Environmental Cases (A.M. No. 09-6-8-SC), and any amendments thereto. The courts shall exempt such actions from the payment of filing fees and injunction bonds.

Sec. 32. Independence of Action. - The filing of an administrative suit against

such person/entity does not preclude the right of any other person to file any criminal or civil action. Such civil action shall proceed independently.

Sec. 33. Suits and Strategic Legal Actions Against Public Participation and the

2 Enforcement of This Act. - Where a suit is brought against a person who filed an 3 action under Section 31 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 5 the court, as the case may be, to immediately make a determination not exceeding 6 thirty (30) days whether said legal action has been filed to harass, vex, exert undue 7 pressure, or stifle the enforcement of this Act. Upon determination thereof, the court 8 shall dismiss the case and award attorney's fees and double damages. This protection shall also apply to public officers and employees who, acting in 10 good faith and without grave abuse of authority, implement this Act in the course of their official duties. CHAPTER 4 ESTABLISHMENT OF AN EAS MANAGEMENT FUND

Sec. 34. Environmental Revolving Fund. - There is hereby established an

Environmental Revolving Fund (ERF) to defray administrative expenses, equipment purchases or leases, capacity-building, and other program costs directly incurred in the implementation, review, assessment, and monitoring of the Environmental Assessment System (EAS). The ERF shall be sourced from the following: (a) Contributions in the form of donations, endowments, and grants, which shall be exempt from income or gift taxes and all other taxes, charges, or fees imposed by the government or any of its political subdivisions, instrumentalities, or agencies; (b) Funds to be provided by project proponents to cover the costs of review and evaluation of specific projects; and (c) Income derived from fees, fines, and penalties directly related to the implementation of the EAS. The ERF may be utilized directly by the Department for the purposes stated in this Act. All transactions of the ERF shall be subject to the usual auditing and accounting rules and regulations in accordance with existing laws.

Sec. 35. Appropriations. - The amount of One Hundred Million Pesos

2 (P100,000,000.00) shall be appropriated for the initial implementation of this Act, to cover the transition and establishment of the NEPA within the five-year period. Thereafter, the necessary appropriations shall be included annually in the 5 General Appropriations Act. All fees, charges, fines, and penalties collected under this 6 Act shall accrue to a Special Account in the National Treasury and shall constitute a 7 revolving fund to be administered by NEPA, to ensure the financial sustainability of the Environmental Assessment System.

Sec. 36. Implementing Rules and Regulations. - Unless otherwise provided in

10 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 IASC, 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 5 FINAL PROVISIONS

Sec. 37. 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. The Department of Environment and Natural Resources shall take the necessary steps for the smooth transition of the Bureau to establish the NEPA and propose the funding necessary for the same.

Sec. 38. 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.

Sec. 39. Repealing Clause. - Presidential Decree No. 1586, Presidential

Proclamation No. 2146, Executive Order No. 803, and Office of the President 29 Administrative Order No. 42, series of 2002 are hereby repealed. All laws, orders, rules

1 and regulations or any part thereof which are inconsistent with the provisions of this 2 Act are hereby amended or modified accordingly.

Sec. 40. Date of Effectivity. - This Act shall take effect fifteen (15) days after

4 its publication in the official Gazette or in two (2) newspapers of general circulation. Approved,