1987 CONSTITUTION

Section 15. The State shall protect and promote the right to health of the people and instill health
consciousness among them.
Section 16. The State shall protect and advance the right of the people to a balanced and healthful
ecology in accord with the rhythm and harmony of nature.
ARTICLE XII
NATIONAL ECONOMY AND PATRIMONY
Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and
wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the
people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.
The State shall promote industrialization and full employment based on sound agricultural development and
agrarian reform, through industries that make full and efficient use of human and natural resources, and which
are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises
against unfair foreign competition and trade practices.cralaw
In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum
opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective
organizations, shall be encouraged to broaden the base of their ownership.cralaw
Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by
the State. With the exception of agricultural lands, all other natural resources shall not be alienated. The
exploration, development, and utilization of natural resources shall be under the full control and supervision of
the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or
production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of
whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years,
renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law.
In cases of water rights for irrigation, water supply fisheries, or industrial uses other than the development of
water power, beneficial use may be the measure and limit of the grant.cralaw
The State shall protect the nation's marine wealth in its archipelagic waters, territorial sea, and exclusive
economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.cralaw
The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as
cooperative fish farming, with priority to subsistence fishermen and fish- workers in rivers, lakes, bays, and
lagoons.cralaw
The President may enter into agreements with foreign-owned corporations involving either technical or financial
assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by law, based on real contributions to the economic
growth and general welfare of the country. In such agreements, the State shall promote the development and
use of local scientific and technical resources.cralaw
The President shall notify the Congress of every contract entered into in accordance with this provision, within
thirty days from its execution.cralaw
Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national
parks. Agricultural lands of the public domain may be further classified by law according to the uses to which
they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private
corporations or associations may not hold such alienable lands of the public domain except by lease, for a
period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one
thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire
not more than twelve hectares thereof, by purchase, homestead, or grant.cralaw

Taking into account the requirements of conservation, ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain
which may be acquired, developed, held, or leased and the conditions therefor.cralaw
Section 4. The Congress shall, as soon as possible, determine, by law, the specific limits of forest lands and
national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks
shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide for
such period as it may determine, measures to prohibit logging in endangered forests and watershed
areas.cralaw
Section 5. The State, subject to the provisions of this Constitution and national development policies and
programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their
economic, social, and cultural well-being.cralaw
The Congress may provide for the applicability of customary laws governing property rights or relations in
determining the ownership and extent of ancestral domain.cralaw
Section 6. The use of property bears a social function, and all economic agents shall contribute to the common
good. Individuals and private groups, including corporations, cooperatives, and similar collective organizations,
shall have the right to own, establish, and operate economic enterprises, subject to the duty of the State to
promote distributive justice and to intervene when the common good so demands.cralaw
Section 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to
individuals, corporations, or associations qualified to acquire or hold lands of the public domain.cralaw
Section 8. Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who
has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by
law.cralaw
Section 9. The Congress may establish an independent economic and planning agency headed by the
President, which shall, after consultations with the appropriate public agencies, various private sectors, and local
government units, recommend to Congress, and implement continuing integrated and coordinated programs and
policies for national development.cralaw
Until the Congress provides otherwise, the National Economic and Development Authority shall function as the
independent planning agency of the government.cralaw
Section 10. The Congress shall, upon recommendation of the economic and planning agency, when the national
interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per centum
of whose capital is owned by such citizens, or such higher percentage as Congress may prescribe, certain areas
of investments. The Congress shall enact measures that will encourage the formation and operation of
enterprises whose capital is wholly owned by Filipinos.cralaw
In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall
give preference to qualified Filipinos.cralaw
The State shall regulate and exercise authority over foreign investments within its national jurisdiction and in
accordance with its national goals and priorities.cralaw
Section 11. No franchise, certificate, or any other form of authorization for the operation of a public utility shall be
granted except to citizens of the Philippines or to corporations or associations organized under the laws of the
Philippines, at least sixty per centum of whose capital is owned by such citizens; nor shall such franchise,
certificate, or authorization be exclusive in character or for a longer period than fifty years. Neither shall any such
franchise or right be granted except under the condition that it shall be subject to amendment, alteration, or
repeal by the Congress when the common good so requires. The State shall encourage equity participation in
public utilities by the general public. The participation of foreign investors in the governing body of any public
utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing
officers of such corporation or association must be citizens of the Philippines.cralaw
Section 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally
produced goods, and adopt measures that help make them competitive.cralaw

Section 13. The State shall pursue a trade policy that serves the general welfare and utilizes all forms and
arrangements of exchange on the basis of equality and reciprocity.cralaw
Section 14. The sustained development of a reservoir of national talents consisting of Filipino scientists,
entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all
fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer
for the national benefit.cralaw
The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by
law.cralaw
Section 15. The Congress shall create an agency to promote the viability and growth of cooperatives as
instruments for social justice and economic development.cralaw
Section 16. The Congress shall not, except by general law, provide for the formation, organization, or regulation
of private corporations. Government-owned or controlled corporations may be created or established by special
charters in the interest of the common good and subject to the test of economic viability.cralaw
Section 17. In times of national emergency, when the public interest so requires, the State may, during the
emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any
privately-owned public utility or business affected with public interest.cralaw
Section 18. The State may, in the interest of national welfare or defense, establish and operate vital industries
and, upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be
operated by the Government.cralaw
Section 19. The State shall regulate or prohibit monopolies when the public interest so requires. No
combinations in restraint of trade or unfair competition shall be allowed.cralaw
Section 20. The Congress shall establish an independent central monetary authority, the members of whose
governing board must be natural-born Filipino citizens, of known probity, integrity, and patriotism, the majority of
whom shall come from the private sector. They shall also be subject to such other qualifications and disabilities
as may be prescribed by law. The authority shall provide policy direction in the areas of money, banking, and
credit. It shall have supervision over the operations of banks and exercise such regulatory powers as may be
provided by law over the operations of finance companies and other institutions performing similar
functions.cralaw
Until the Congress otherwise provides, the Central Bank of the Philippines operating under existing laws, shall
function as the central monetary authority.cralaw
Section 21. Foreign loans may only be incurred in accordance with law and the regulation of the monetary
authority. Information on foreign loans obtained or guaranteed by the Government shall be made available to the
public.cralaw
Section 22. Acts which circumvent or negate any of the provisions of this Article shall be considered inimical to
the national interest and subject to criminal and civil sanctions, as may be provided by law.

PRESIDENTIAL DECREE No. 1151

PHILIPPINE ENVIRONMENTAL POLICY
WHEREAS, the individual and, at times, conflicting, demands of population growth, urbanization, industrial
expansion, rapid natural resources utilization and increasing technological advances have resulted in a
piecemeal-approach concept of environmental protection;
WHEREAS, such tunnel-vision concept is not conducive to the attainment of an ideal environmental situation
where man and nature can thrive in harmony with one another; and

WHEREAS, there is now an urgent need to formulate an intensive, integrated program of environmental
protection that will bring about a concerted effort towards the protection of the entire spectrum of the
environment through a requirement of environmental impact assessments and statements:
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested
in me by the Constitution, do hereby order and decree:
Section 1. Policy. It is hereby declared a continuing policy of the State
(a) to create, develop, maintain and improve conditions under which man and nature can thrive in
productive and enjoyable harmony with each other,
(b) to fulfill the social, economic and other requirements of present and future generations of Filipinos,
and
(c) to insure the attainment of an environmental quality that is conducive to a life of dignity and wellbeing.
Section 2. Goal. In pursuing this policy, it shall be the responsibility of the Government, in cooperation with
concerned private organizations and entities, to use all practicable means, consistent with other essential
considerations of national policy, in promoting the general welfare to the end that the Nation may (a) recognize,
discharge and fulfill the responsibilities of each generation as trustee and guardian of the environment for
succeeding generations, (b) assure the people of a safe, decent, healthful, productive and aesthetic
environment, (c) encourage the widest exploitation of the environment without degrading it, or endangering
human life, health and safety or creating conditions adverse to agriculture, commerce and industry, (d) preserve
important historic and cultural aspects of the Philippine heritage, (e) attain a rational and orderly balance
between population and resource use, and (f) improve the utilization of renewable and non-renewable
resources.
Section 3. Right to a Healthy Environment. In furtherance of these goals and policies, the Government
recognizes the right of the people to a healthful environment. It shall be the duty and responsibility of each
individual to contribute to the preservation and enhancement of the Philippine environment.
Section 4. Environmental Impact Statements. Pursuant to the above enunciated policies and goals, all agencies
and instrumentalities of the national government, including government-owned or controlled corporations, as well
as private corporations firms and entities shall prepare, file and include in every action, project or undertaking
which significantly affects the quality of the environment a detail statement on
(a) the environmental impact of the proposed action, project or undertaking
(b) any adverse environmental effect which cannot be avoided should the proposal be implemented;
(c) alternative to the proposed action;
(d) a determination that the short-term uses of the resources of the environment are consistent with the
maintenance and enhancement of the long-term productivity of the same; and
(e) whenever a proposal involve the use of depletable or non-renewable resources, a finding must be
made that such use and commitment are warranted.
Before an environmental impact statement is issued by a lead agency, all agencies having jurisdiction over, or
special expertise on, the subject matter involved shall comment on the draft environmental impact statement
made by the lead agency within thirty (30) days from receipt of the same.

PRESIDENTIAL DECREE No. 1586

ESTABLISHING AN ENVIRONMENTAL IMPACT STATEMENT SYSTEM, INCLUDING OTHER
ENVIRONMENTAL MANAGEMENT RELATED MEASURES AND FOR OTHER PURPOSES
WHEREAS, the pursuit of a comprehensive and integrated environment protection program
necessitates the establishment and institutionalization of a system whereby the exigencies of
socio-economic undertakings can be reconciled with the requirements of environmental quality;
WHEREAS, the regulatory requirements of environmental Impact Statements and Assessments
instituted in pursuit of this national environmental protection program have to be worked into their
full regulatory and procedural details in a manner consistent with the goals of the program.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution do hereby order and declare:
Section 1. Policy. It is hereby declared the policy of the State to attain and maintain a rational
and orderly balance between socio-economic growth and environmental protection.
Section 2. Environmental Impact Statement System. There is hereby established an
Environmental Impact Statement System founded and based on the environmental impact
statement required, under Section 4 of Presidential Decree No. 1151, of all agencies and
instrumentalities of the national government, including government-owned or controlled
corporations, as well as private corporations, firms and entities, for every proposed project and
undertaking which significantly affect the quality of the environment.
Section 3. Determination of Lead Agency. The Minister of Human Settlements or his designated
representative is hereby authorized to name the lead agencies referred to in Section 4 of
Presidential Decree No. 1151 which shall have jurisdiction to undertake the preparation of the
necessary environmental impact statements on declared environmentally critical projects and
areas. All Environmental Impact Statements shall be submitted to the National Environmental
Protection Council for review and evaluation.
Section 4. Presidential Proclamation of Environmentally Critical Areas and Projects. The
President of the Philippines may, on his own initiative or upon recommendation of the National
Environmental Protection Council, by proclamation declare certain projects, undertakings or
areas in the country as environmentally critical. No person, partnership or corporation shall
undertake or operate any such declared environmentally critical project or area without first
securing an Environmental Compliance Certificate issued by the President or his duly authorized
representative. For the proper management of said critical project or area, the President may by
his proclamation reorganize such government offices, agencies, institutions, corporations or
instrumentalities including the re-alignment of government personnel, and their specific functions
and responsibilities.
For the same purpose as above, the Ministry of Human Settlements shall: (a) prepare the proper
land or water use pattern for said critical project(s) or area (s); (b) establish ambient
environmental quality standards; (c) develop a program of environmental enhancement or
protective measures against calamituous factors such as earthquake, floods, water erosion and
others, and (d) perform such other functions as may be directed by the President from time to
time.
Section 5. Environmentally Non-Critical Projects. All other projects, undertakings and areas not
declared by the President as environmentally critical shall be considered as non-critical and shall
not be required to submit an environmental impact statement. The National Environmental
Protection Council, thru the Ministry of Human Settlements may however require non-critical
projects and undertakings to provide additional environmental safeguards as it may deem
necessary.
Section 6. Secretariat. The National Environmental Protection Council is hereby authorized to
constitute the necessary secretariat which will administer the Environmental Impact Statement

System and undertake the processing and evaluation of environmental impact statements.
Section 7. Management and Financial Assistance. The Ministry of Human Settlements is hereby
authorized to provide management and financial support to government offices and
instrumentalities placed under its supervision pursuant to this Decree financed from its existing
appropriation or from budgetary augmentation as the Minister of Human Settlements may deem
necessary.
Section 8. Rules and Regulations. The National Environmental Protection Council shall
issue the necessary rules and regulations to implement this Decree. For this purpose, the
National Pollution Control Commission may be availed of as one of its implementing
arms, consistent with the powers and responsibilities of the National Pollution Control
Commission as provided in P.D. No. 984.
Section 9. Penalty for Violation. Any person, corporation or partnership found violating Section 4
of this Decree, or the terms and conditions in the issuance of the Environmental Compliance
Certificate, or of the standards, rules and regulations issued by the National Environmental
Protection Council pursuant to this Decree shall be punished by the suspension or cancellation of
his/its certificate or and/or a fine in an amount not to exceed Fifty Thousand Pesos (P50,000.00)
for every violation thereof, at the discretion of the National Environmental Protection Council.
Section 10. Environmental Revolving Fund. Proceeds from the penalties prescribed in the
preceding Section 9 and other penalties imposed by the National Pollution Control Commission
as authorized in P.D. 984, shall be automatically appropriated into an Environment Revolving
Fund hereby created as an exemption to P.D. 711 and P.D. 1234. The fund shall be used
exclusively for the operation of the National Environmental Protection Council and the National
Pollution Control Commission in the implementation of this Decree. The rules and regulations for
the utilization of this fund shall be formulated by the Ministry of Human Settlements and
submitted to the President for approval.
Section 11. Repealing Clause. The Inter-Agency Advisory Council of the National Pollution
Control Commission created under Section 4 of P.D. 984 is hereby abolished and its powers and
responsibilities are forthwith delegated and transferred to the Control of the National
Environmental Protection Council.
All other laws, decrees, executive orders, rules and regulations inconsistent herewith are hereby
repealed, amended or modified accordingly.
Section 12. Effectivity Clause. This Decree shall take effect immediately.
DONE in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.

Section 5. Agency Guidelines. The different agencies charged with environmental protection as enumerated in
Letter of Instruction No. 422 shall, within sixty (60) days from the effectivity of this Decree, submit to the National
Environmental Protection Council (NEPC), their respective guidelines, rules and regulations to carry out the
provisions of Sec. 4 hereof on environmental impact assessments and statements.
Section 6. Repealing Clause. All Acts, Presidential Decrees, executive orders, rules and regulations or parts
thereof which are inconsistent with the provisions of this Decree are hereby repealed, amended or modified
accordingly.
Section 7. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila this 6th day of June in the year of Our Lord, nineteen hundred and seventy-nine.
Section 62. Definition of Terms. As used in this Code:

(a) "Ambient Air Quality" means the average atmospheric purity as distinguished from discharge
measurements taken at the source of pollution. It is the general amount of pollution present in a broad
area.
(b) "Emission" means the act of passing into the atmosphere an air contaminant, pollutant, gas stream
and unwanted sound from a known source.
(c) "Water Quality" means the characteristics of water which define its use in terms of physical, chemical
and biological contents; hence the quality of water for domestic use is different from industrial use.
(d) "Water Quality Surveillance" means a close and continuous supervision of the water quality to detect
development movements or changes in the characteristics of the water.
(e) "Water Quality Standard" means a plan that is established by governmental authority as a program
for water pollution prevention and abatement. Such a standard may include water use classification and
the criteria to support the uses of the water.
(f) "Effluent Standards" means restrictions established to limit levels of concentration of physical,
chemical and biological constituents which are discharged from point sources.
(g) "Clean-up Operations" refers to activities conducted in removing the pollutants discharged or spilled
in water to restore it to pre-spill condition.
(h) "Accidental Spills" refers to spills of oil or other hazardous substances in water that result from
accidents involving the carriers of such substance such as collisions and grounding.
(i) "Areas of Critical Environmental Concern" are areas where uncontrolled development could result in
irreparable damage to important historic, cultural, or aesthetic values or natural systems or processes of
national significance.
(j) "Hazardous Substances" means elements or compounds which when discharged in any quantity
present imminent or substantial danger to public health and welfare.
(k) "Areas Impacted by Public Facilities" refers to areas where the introduction of public facilities may
tend to induce development and urbanization of more than local significance or impact.
(l) "Environmental Impact" is the alteration, to any degree, of environmental conditions or the creation of
a new set of environmental conditions, adverse or beneficial, to be induced or caused by a proposed
project.
(m) "Government Agencies" refers to national, local and regional agencies and instrumentalities
including government-owned and controlled corporations.