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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano

COVERAGE 1

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 both
domestic and foreign markets. However, the State
shall protect Filipino enterprises against unfair
foreign competition and trade practices.
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 sea, and exclusive
economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.
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 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

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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 wellbeing.
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 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

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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.

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. Governmentowned 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 naturalborn 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.
Until the Congress otherwise provides, the Central
Bank of the Philippines, operating under existing
laws, shall function as the central monetary
authority.

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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 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;

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(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.

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.

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.

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 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.

Done in the City of Manila this 6th day of June in the

year of Our Lord, nineteen hundred and seventy-nine.

1. PRESIDENTIAL DECREE No. 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

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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.

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
identified environmental impacts.

2. Par I, Sec 62.

Environment Code

Title

VI

of

Philippine

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.

* Environmental Impact Statement

document, prepared and submitted by

mitigate

(EIS)

the project proponent and/or EIA Consultant that

serves as an application for an
ECC. It is a comprehensive study of the significant
impacts of a project on the
environment.
It
includes
an
Management Plan/Program that the

3. Implementing Rules of PD 1586

to

Environmental

proponent will fund and implement to protect the

environment.

Article I
Sec 3 Definition of Terms :
*Environment - Surrounding air, water (both ground
and surface), land, flora,
fauna, humans and their interrelations.
*Project or Undertaking - any activity, regardless
of scale or magnitude, which
may have significant impact on the environment.
* Environmental Compliance Certificate (ECC)document issued by the
DENR/EMB after a positive review
application, certifying that based

of

an

on the representations of the proponent,

proposed project or undertaking will
not cause significant negative:
impact. The ECC also certifies that

ECC

the

environmental

the proponent has complied with all the requirements

of the EIS System and has

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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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
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
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.
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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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.

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ENVIRONMENTAL LAW Reviewer under Atty. Steve Mercano
4. EXECUTIVE ORDER NO. 291

January 12, 1996

IMPROVING THE ENVIRONMENTAL

STATEMENT SYSTEM

IMPACT

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
compromising the ability of the future generations to
meet their own needs.
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
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.
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 Declaration of Environmentally
Critical Projects/Areas) and
DENR Administrative Order 96-37 (Attached
pp1-5)

Prepared by JLME