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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano

COVERAGE 1

both domestic and foreign markets.

However, the State shall protect Filipino
enterprises
against
unfair
foreign
competition and trade practices.

I. Relevant Constitutional Provisions

1987 Constitution

Article 2
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 12
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

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.

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.
The State shall protect the nations marine
wealth in its archipelagic waters, territorial

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
sea, and exclusive economic zone, and
reserve its use and enjoyment exclusively
to Filipino citizens.
The Congress may, by law, allow smallscale utilization of natural resources by
Filipino citizens, as well as cooperative fish
farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes,
bays, and lagoons.
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.
The President shall notify the Congress of
every contract entered into in accordance
with this provision, within thirty days from
its execution.

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 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.
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.

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.

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.
The Congress may provide for the
applicability of customary laws governing
property rights or relations in determining
the ownership and extent of ancestral
domain.

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

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
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.

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.

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.

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.
Until the Congress provides otherwise, the
National Economic and Development
Authority
shall
function
as
the
independent planning agency of the
government.

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.
In the grant of rights, privileges, and
concessions
covering
the
national
economy and patrimony, the State shall
give preference to qualified Filipinos.
The State shall regulate and exercise
authority over foreign investments within
its national jurisdiction and in accordance
with its national goals and priorities.

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

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
the executive and managing officers of
such corporation or association must be
citizens of the Philippines.

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.

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.

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.
The practice of all professions in the
Philippines shall be limited to Filipino
citizens, save in cases prescribed by law.

SECTION 15. The Congress shall create an

agency to promote the viability and
growth of cooperatives as instruments for
social justice and economic development.

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.

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.

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.

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.

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

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
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.
Until the Congress otherwise provides, the
Central Bank of the Philippines, operating
under existing laws, shall function as the
central monetary authority.

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.

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.

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II. Philippine Environmental Policy
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 well-being.

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

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
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

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.

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.
(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.

1. PRESIDENTIAL DECREE No. 1586

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
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.

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.

which significantly affect the quality of the

environment.
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.

2. Par I, Sec 62. Title VI of Philippine

Environment Code
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

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.

3. Implementing Rules of PD 1586

Article I

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
Sec 3 Definition of Terms :
*Environment - Surrounding air, water
(both ground and surface), land, flora,

the
project
proponent
and/or
EIA
Consultant that serves as an application
for an

fauna, humans and their interrelations.

ECC. It is a comprehensive study of the

significant impacts of a project on the

*Project or Undertaking - any activity,

regardless of scale or magnitude, which

environment. It includes an Environmental

Management Plan/Program that the

may have significant

environment.

proponent will fund and implement to

protect the environment.

impact

on

the

*
Environmental
Compliance
Certificate (ECC)- document issued by
the
DENR/EMB after a positive review of an
ECC application, certifying that based
on the representations of the proponent,
the proposed project or undertaking will
not
cause
environmental
certifies that

significant
impact. The

negative:
ECC also

the proponent has complied with all the

requirements of the EIS System and has
committed to implement its approved
Environmental Management Plan. The ECC
contains specific measures and conditions
that the project proponent has to
undertake before and during the operation
of a project, and in some cases, during
the project's abandonment phase to
mitigate identified environmental impacts.
* Environmental Impact Statement
(EIS) - document, prepared and submitted
by

Section 3 Functions of Lead Agencies

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.
Sec 6 and 7 Rights and obligations of
interested parties and duties and
responsibilities
of
a
project
proponent
Section 6. Appeal
Any party aggrieved by the final decision
on the ECC / CNC applications may, within
15 days from receipt of such decision, file
an appeal on the following grounds:
a. Grave abuse of discretion on the part of
the deciding authority, or
b. Serious errors in the review findings.
The
DENR
may
adopt
alternative
conflict/dispute resolution procedures as a
means to settle grievances between
proponents and aggrieved parties to avert
unnecessary
legal
action.
Frivolous
appeals shall not be countenanced.

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The proponent or any stakeholder may file
an appeal to the following:
Deciding Authority Where to file the
appeal
EMB Regional Office Director Office of the
EMB Director
EMB Central Office Office of the DENR
Secretary
DENR Secretary Office of the President
Section 7. The EIA Process in Relation to
the Project Planning Cycle
Proponents are directed under AO 42 to
conduct simultaneously the environmental
impact study and the project planning or
feasibility study. EMB may validate
whether or not the EIS was integrated with
project planning by requiring relevant
documentary proofs, such as the terms of
reference for the feasibility study and
copies of the feasibility study report.
The EMB shall study the potential
application
of
EIA
to
policy-based
undertakings as a further step toward
integrating and streamlining the EIS
system.
Sec 1.

c. Project proponents are responsible for

determining and disclosing all relevant information
necessary for a methodical ' assessment of the
environmental impacts of their projects;

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ARTICLE II Declaration of
Environmentally Critical Projects or
Areas
PROCLAMATION NO. 2146 of 1981
A. Environmentally Critical Projects
I. Heavy Industries
a.Non-ferrous metal industries
b. Iron and steel mills
c.Petroleum and petro-chemical industries
including oil and gas
d. Smelting plants
II. Resource Extractive Industries
a.Major mining and quarrying projects
b. Forestry projects
1. Logging
2. Major wood processing projects
3. Introduction of fauna (exotic-animals) in
public/private forests
4. Forest occupancy
5.Extraction of mangrove products
6. Grazing
c. Fishery Projects
1. Dikes for fishpond development projects
III. Infrastructure Projects
a. Major dams
b. Major power plants (fossil-fueled,
nuclear
fueled,
hydroelectric
or
geothermal)
c. Major reclamation projects
d. Major roads and bridges.
B. Environmentally Critical Areas
1. All areas declared by law as national
parks,
watershed
reserves,
wildlife
preserves and sanctuaries;
2. Areas set aside as aesthetic potential
tourist spots;
3. Areas which constitute the habitat for
any endangered or threatened species of
indigenous Philippine Wildlife (flora and
fauna);
4.
Areas
of
unique
historic,
archaeological , or scientific interests;
5. Areas which are traditionally occupied
by cultural communities or tribes;
6. Areas frequently visited and/or hard-hit
by natural calamities geologic hazards,
floods, typhoons, volcanic activity, etc.
7. Areas with critical slopes;
8. Areas classified as prime agricultural
lands;
9. Recharged areas of aquifers;
10. Water bodies characterized by one or
any
combination
of
the
following
conditions;;

a. tapped for domestic purposes;;

b. within the controlled and/or protected
areas declared by appropriate authorities;
c. which support wildlife and fishery
activities.
11. Mangrove areas characterized by one
or any combination or the following
conditions:chanroblesvirtuallawlibrary
a. with primary pristine and dense young
growth;
b. adjoining mouth of major river systems;
c. near or adjacent to traditional
productive fry or fishing grounds;
d. which act as natural buffers against
shore erosion, strong winds and storm
floods;
e. on which people are dependent for their
livelihood.
12. Coral reef characterized by one or any
combination
of
the
following
conditions:chanroblesvirtuallawlibrary
a. with 50% and above live coralline cover;
b. Spawning and nursery grounds for fish;
c. Which act as natural breakwater of
coastlines.
Section 1. Basic Policy and Operating
Principles
Consistent
with
the
principles
of
sustainable development, it is the policy of
the DENR to
implement
a
systems-oriented
and
integrated approach to the LIS system to
ensure a
rational balance between socio-economic
development
and
environmental
protection for
the benefit of present and future
generations.
The following are the key operating
principles in the implementation of the
Philippine
EIS System:
a. The EIS System is concerned primarily
with assessing the direct and indirect
impacts of a project on the biophysical
and human environment and ensuring
that
these impacts P re addressed by
appropriate environmental protection and
enhancement measures.
b. The EIS System aids proponents in
incorporating
environmental
considerations in

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
planning their projects as well as in
determining the environment's impact on
their
project.
c. Project proponents are responsible for
determining and disclosing all relevant
information necessary for a methodical '
assessment of the environmental impacts
of their projects;
d. The review of the EIS by EMB shall be
guided by three general criteria: (1) that
environmental
considerations
are
integrated into the overall project
planning, (2)
that the assessment is technically sound
and proposed
environmental mitigation, measures are
effective, and (3) that , social
acceptability is based on informed public
participation;
e. Effective regulatory review of the EIS
depends largely on timely full; and
accurate
disclosure
of
relevant:
information by project proponents and,
other
stakeholders in the EIA process
f. The social acceptability of a project is a
result of meaningful public participation,
which shall be assessed as part of the
Environmental Compliance Certificate
(ECC) application, based on concerns
related to the project's environmental
impacts;
g. The timelines prescribed by this Order,
within which an Environmental Compliance Certificate must be issued, or
denied, apply only to processes and
actions
within
the
Environmental
Management Bureau's (EMB) control and
do
not include actions or activities that are
the responsibility of the proponent.

The EMB Director or the EMB-RD may

issue a Cease and Desist Order (CDO)
based on violations under the Philippine
EIS System to prevent grave or irreparable
damage to the environment. Such CDO
shall be effective immediately. An appeal
or any motion seeking to lift the CDO shall
not stay its effectivity. However, the DENR
shall act on such appeal or motion within
ten (10) working days from filing.
The EMB may publish the identities of
firms that are in violation of the EIA Law
and
its
Implementing
Rules
and
Regulations despite repeated Notices of
Violation and/or Cease and Desist Orders.
PD 1586 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.

ARTICLE
1V
Section
16.
Fines,
Penalties And Sanctions
The EMB Central Office or Regional Office
Directors shall impose penalties upon
persons or entities found violating
provisions
of
P.D.
1586,
and
its
Implementing Rules and Regulations.
Details of the Fines and Penalty Structure
shall be covered by a separate order.

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4.

EXECUTIVE
ORDER
January 12, 1996

NO.

291

compromising the ability of the future

generations to meet their own needs.

IMPROVING
THE
ENVIRONMENTAL
IMPACT STATEMENT SYSTEM

SEC. 2.Simultaneous Conduct of the

Environmental
Impact
Study
and
Feasibility Study. To maximize the use of
resources, project proponents are hereby
directed to simultaneously conduct the
environmental impact study and the
feasibility study of the proposed project.
Proponents are urged to use simultaneous
conduct of the environmental impact
study and the feasibility study as a
planning tool, with the end in view of
minimizing
or
managing
adverse
environmental impacts of the proposed
activity. lawphi1.net

WHEREAS, the Environmental Impact

Statement (EIS) System was established
to
facilitate
the
attainment
and
maintenance of a rational and orderly
balance between socio-economic growth
and environmental protection;
WHEREAS, the integration of the EIS
System early into the project development
cycle would enhance and promote its
desired function as a planning tool for
sustainable economic development and
environmental planning and conservation;
WHEREAS, it is necessary to further
strengthen
the
Environmental
Management Bureau's and the DENR
Regional Office's capabilities to effectively
and efficiently accomplish their mandate
in relation to the protection of the
environment, in general, and the EIS
System, in particular;
WHEREAS, the continued updating and
improvement of the Philippine EIS System
is vital
to expedite
the National
Government's efforts to make the delivery
of vital infrastructure to the country faster
and be consistent with the principles of
sustainable development;
WHEREAS, a systematic and cohesive EIS
System
shall
ensure
that
national
development goals are achieved as
planned and without delay;
NOW, THEREFORE, I, FIDEL V. RAMOS,
President of the Philippines, by virtue of
the powers vested in my by law, do
hereby order:
SECTION 1.
Declaration of Policy. It is
the policy of the State that optimum
economic development shall be achieved
without delay and shall be pursued
consistent
with
the
principles
of
sustainable development. Hence, the
State shall ensure that the present
generation meets its needs without

SEC. 3.Establishment
of
In-house
Environmental Units in All Implementing
Agencies.
Consistent with Section 4 (Environmental
Impact Statements) of PD 1151 and upon
approval of the Department of Budget and
Management,
National
Government
agencies,
government-owned
and
-controlled corporations (GOCCs) and
government financial institutions (GFIs)
are encouraged to create their respective
environmental units (EUs). However, all
agencies, whose mandate includes the
introduction of physical plants and
infrastructure, are required to create their
respective EUs. The costs attendant to the
establishment of these units shall be
within the respective approved budgetary
ceilings of the concerned agencies,
corporations, and institutions.
The functions of the above-mentioned
units are as follows:
i.
The EUs of national government
agencies and GOCCs shall assist in the
preparation of EIS, ensure that their
respective agencies/GOCCs meet the
procedural requirements of the EIS
System, facilitate the securing of the ECCs
of their respective projects and, upon
securing the ECC, shall ensure the
project's compliance with the conditions of
the ECC.

Prepared by JLME

P a g e | 14
ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
ii.
The EUs of the GFIs shall ensure
that loan or related funding applications of
government and private institutions have
complied with the EIS System.
The Department of Environment and
Natural Resources (DENR) and the
Environmental Management Bureau (EMB)
shall monitor compliance with the ECC,
and be in-charge of the formulation,
dissemination and enforcement of policies
on
environmental
standards
and
compliance monitoring.
SEC. 4.Continuous Strengthening of the
Environmental
Impact
Assessment
Capability of the DENR.
The importance of environmental impact
assessment
in
pursuing
balanced
economic growth will have to be
supported by continuing efforts to further
upgrade DENR-EMB's and DENR Regional
Office's capabilities to undertake fast and
efficient review of EIS. These efforts shall
include but are not limited to the

expansion of the EIA Review Committee

members and setting their honoraria
within the limits and qualifications set
forth by DBM National Compensation
Circulars.
SEC. 5.Repealing
Clause.
All
orders,
issuances, circulars, rules and regulations
or portions thereof inconsistent with the
provisions of this Executive Order are
hereby repealed or amended.
SEC. 6. Effectivity. This Order shall take
effect immediately. lawphi1.net
DONE in the City of Manila, this 12th day
of January in the year of Our Lord,
Nineteen Hundred and Ninety-Six.
5. PD 2146 (See
Environmentally
Projects/Areas) and

Declaration of
Critical

DENR Administrative Order 96-37

(Attached pp1-5)

Prepared by JLME