MALACAANG Manila PRESIDENTIAL DECREE No.

984 August 18, 1976 PROVIDING FOR THE REVISION OF REPUBLIC ACT NO. 3931, COMMONLY KNOWN AS THE POLLUTION CONTROL LAW, AND FOR OTHER PURPOSES WHEREAS, there is a need to modify the organizational structure of the NATIONAL POLLUTION CONTROL COMMISSION to make it more effective and efficient in the discharge of its functions and responsive to the demands of the times occasioned by the accelerative phase of the country's industrialization program; WHEREAS, there is an imperative need to strengthen this Commission to best protect the people from the growing menace of environmental pollution; and WHEREAS, it is urgently necessary to maintain the role of the Commission as the primary agency responsible for the prevention and control of environmental pollution; 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 the revision of Republic Act No. 3931, to be known as the "National Pollution Control Decree of 1976," to read as follows: Section 1. Statement of Policy. It is hereby declared a national policy to prevent, abate and control pollution of water, air and land for the more effective utilization of the resources of this country. Section 2. Definitions. As used in this Decree: (a) "Pollution" means any alteration of the physical, chemical and biological properties of any water, air and/or land resources of the Philippines, or any discharge thereto of any liquid, gaseous or solid wastes as will or is likely to create or to render such water, air and land resources harmful, detrimental or injurious to public health, safety or welfare or which will adversely affect their utililization for domestic, commercial, industrial, agricultural, recreational or other legitimate purposes. (b) "Sewage" means the water-carried human or animal wastes from residences, buildings, industrial establishments, or other places, together with such water infiltration and surface water as may be present. The admixture or sewage and industrial wastes or other wastes as hereafter defined shall also be considered "sewage." (c) "Industrial Waste" means any liquid, gaseous or solid matter, or other waste substance or a combination thereof resulting from any process of industry, manufacturing trade or business or from the development, processing or recovery or any natural resources which may cause or tend to cause pollution, or contribute to the pollution of the water, air and land resources of the Philippines. (d) "Other Waste" means garbage, refuse, wood residues, sand, lime cinders, ashes, offal, night-oil, tar, dye stuffs, acids, chemicals, and other substances not sewage or industrial waste which may cause or tend to cause pollution; or contribute to the pollution of the water, air and land resources of the Philippines. (e) "Sewage System or Sewerage System" means pipe lines or conduits, pumping stations, force mains, constructed drainage ditches, and all other constructions, devices, and appurtenances used for collecting or conducting sewage, and industrial wastes or other wastes to a point of treatment, discharge or ultimate disposal. (f) "Treatment Works" means any method, construction device or appliance appurtenant thereto, installed for the purpose of treating, neutralizing, stabilizing, disinfecting, or disposing of sewage, industrial waste or other wastes, or for the recovery of by-product from such sewage, industrial waste or other wastes.

(g) "Sewage Works" means individually or collectively those constructions or devices use for collecting, pumping, treating, and disposing of sewage, industrial wastes or other waste, or for the recovery of by-products from such sewage, industrial waste or other waste. (h) "Outlet" means the terminus of a sewage works or point of emergence in the water, air and land resources of the Philippines of any sewage, industrial wastes or other wastes. (i) "Commission" means the National Pollution Control Commission. (j) "Person" or "Persons" includes any being, natural or juridical, susceptible of rights and obligations or of being the subject of legal relations. Section 3. Creation of the National Pollution Control Commission; Members. There is hereby created and established a National Pollution Control Commission under the Office of the President. The Commission shall be headed by one full-time commissioner and assisted by two full-time deputy commissioners, one of whom shall be responsible for standard-setting and monitoring and the other for enforcement. The Commissioner shall be a man of proven executive ability. The Deputy Commissioner for StandardSetting and Monitoring shall preferably be a sanitary engineer, while the Deputy Commissioner for Enforcement shall preferably be a lawyer. The Commissioner and the Deputy Commissioners must have technical expertise in the field of pollution control. The Commissioner and the Deputy Commissioners shall be appointed by the President of the Philippines. Section 4. Inter-Agency Advisory Council. There is created an Inter-Agency Advisory Council, attached to the Commission, which shall be composed of representatives designated by the Secretaries of the Department of Agriculture, Health, Industry, Justice, Labor, Local Government and Community Development, National Defense, Natural Resources, and Public Works, Transportation and Communications; the heads of the Laguna Lake Development Authority, National Economic and Development Authority, the National Science Development Board and the Human Settlements Commission. The Commissioner shall head the Inter-Agency Advisory Council. Representatives from the private sector as may be affected, may be invited to the deliberations of the Council. Section 5. Organization of the Commission. The Commission shall have a Water Pollution Control Division, an Air Pollution Control Division, a Research and Development Division, a Legal Division, an Administrative Division and such other divisions or units as may be approved in the General Appropriation Act. Nothing herein contained shall be construed as to automatically terminate or abolish any existing position in the Commission nor shall it be construed as a prohibition against termination of any position. The Commission shall also establish such regional offices as may be necessary. The Commission shall provide such technical, scientific and other services, including the necessary laboratory and other facilities as may be required to carry out the provisions of this Decree: Provided, That the Commission may secure such services as it may deem necessary from other agencies of the National Government, and may make arrangements for the compensation of such services. The Commission may also employ and compensate, within appropriations available therefor, such consultants, experts, advisors, or assistants on a full or part-time basis as may be necessary, coming from government or private business entities, associations, or from local or foreign organizations, to carry out the provisions of this decree any may prescribe their powers, duties and responsibilities. The Commission may conduct scientific experiments, investigations and research to discover economical and practical methods of preventing water, air and land pollution. To this end, the Commission may cooperate with any public or private agency in the conduct of such experiments, investigations and research, and may accept sums of money, for and in behalf of the National Government, given by any international, national or other public or private agency for water, air and land pollution control activities, surveys or programs. Section 6. Powers and Functions. The Commission shall have the following powers and functions:

(a) Determine the location, magnitude, extent, severity, causes, effects and other pertinent information regarding pollution of the water, air and land resources of the country; take such measures, using available methods and technologies, as it shall deem best to prevent or abate such pollution; and conduct continuing researches and studies on the effective means for the control and abatement of pollution. (b) Develop comprehensive multi-year and annual plans for the abatement of existing pollution and the prevention of new or imminent pollution, the implementation of which shall be consistent with the national development plan of the country. Such plans shall indicate priorities and programs during the year. (c) Issue standards, rules and regulations to govern the approval of plans and specifications for sewage works and industrial waste disposal systems and the issuance of permits in accordance with the provisions of this Decree; inspect the construction and maintenance of sewage works and industrial waste disposal system for compliance to plans. (d) Adopt, prescribe, and promulgate rules and regulations governing the procedures of the Commission with respect to hearings, plans, specifications, designs, and other data for sewage works and industrial waste disposal system, the filing of reports, the issuance of permits, and other rules and regulations for the proper implementation and enforcement of this Decree. (e) Issue orders or decisions to compel compliance with the provisions of this Decree and its implementing rules and regulations only after proper notice and hearing. (f) Make, alter or modify orders requiring the discontinuance of pollution specifying the conditions and the time within which such discontinuance must be accomplished. (g) Issue, renew, or deny permits, under such conditions as it may determine to be reasonable, for the prevention and abatement of pollution, for the discharge of sewage, industrial waste, or for the installation or operation of sewage works and industrial disposal system or parts thereof: Provided, however, That the Commission, by rules and regulations, may require subdivisions, condominium, hospitals, public buildings and other similar human settlements to put up appropriate central sewerage system and sewage treatment works, except that no permits shall be required of any new sewage works or changes to or extensions of existing works that discharge only domestic or sanitary wastes from a single residential building provided with septic tanks or their equivalent. The Commission may impose reasonable fees and charges for the issuance or renewal of all permits herein required. (h) After due notice and hearing, the Commission may also revoke, suspend or modify any permit issued under this decree whenever the same is necessary to prevent or abate pollution. (i) Set up effluent, stream, ambient and emission standards and promulgate rules and regulations therefor: Provided, That local governments, development authorities, and other similar government instrumentalities or agencies may set up higher standards subject to the written approval of the Commission. (j) Serve as arbitrator for the determination of reparations, or restitution of the damages and losses resulting from pollution. (k) Deputize in writing or request assistance of appropriate government agencies or instrumentalities for the purpose of enforcing this Decree and its implementing rules and regulations and the orders and decisions of the Commission. (l) Consult, participate, cooperate and enter into agreement with other agencies of the government, and with affected political groups, political subdivisions, and enterprises in the furtherance of the purpose of this Decree. (m) Collect and disseminate information relating to water, air, and land pollution and the prevention, abatement and control thereof.

(n) Authorize its representative to enter at all reasonable times any property of the public dominion and private property devoted to industrial, manufacturing, processing or commercial use without doing damage, for the purpose of inspecting and investigating conditions relating to pollution or possible or imminent pollution. (o) Prepare and submit sixty days after the close of each calendar year an annual report to the President and such periodic reports of activities as may be required from time to time. The annual report shall include the extent to which the objectives in the plans referred to under Sec. 6 (b) have been achieved. (p) Exercise such powers and perform such other functions as may be necessary to carry out its duties and responsibilities under this Decree. Section 7. (a) Public Hearing. Public hearings shall be conducted by the Commissioner, Deputy Commissioners or any senior official duly designated by the Commissioner prior to issuance or promulgation of any order or decision by the Commissioner requiring the discontinuance of discharge of sewage, industrial wastes or other wastes into the water, air or land resources of the Philippines as provided in this Decree: Provided, That whenever the Commission find a prima facie evidence that the discharged sewage or wastes are of immediate threat to life, public health, safety or welfare, or to animal or plant life, or exceeds the allowable standards set by the Commission, the Commissioner may issue an ex-parte order directing the discontinuance of the same or the temporary suspension or cessation of operation of the establishment or person generating such sewage or wastes without the necessity of a prior public hearing. The said ex-parte order shall be immediately executory and shall remain in force until said establishment or person prevents or abates the said pollution within the allowable standards, or modified or nullified by a competent court. All records of the proceedings of said hearings shall be filed with the Commission. All inquiries, hearings, investigations and proceedings conducted by the Commission shall be governed by rules adopted by the Commission, and in the conduct thereof the Commission shall not be bound by technical rules of evidence: Provided, That the Commissioners or any of the duly designated Hearing Officers may summarily punish for contempt, by a fine not exceeding two hundred pesos, any person committing such misconduct in the presence of any of the Commissioners or any of the duly designated Hearing Officers, or so near to them as to seriously interrupt any hearing or session or any proceeding, or any person willfully fails or refuses, without just cause, to comply with a summon, subpoena, or subpoena duces tecum issued by the Commissioners or by the duly designated Hearing Officer or, being present at a hearing, session or investigation, refuses to be sworn as a witness or to answer questions when lawfully required to do so. The Sheriff or other police agencies of the place where the hearing or investigation is conducted, shall, upon request of the Hearing Officer, assist in the enforcement of the provisions of this paragraph. (b) Appeal to Courts. Any decision of the Commission, in the absence of an appeal therefrom as herein provided, shall become final fifteen days after the date of notification, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted the remedies before the Commission. The Commission shall be deemed to be a party to any judicial action involving any decision. (c) Court Review. The decision of the Commission upon any disputed matter may be reviewed both upon the law and the facts of the case by the Court of Appeals. For purposes of such review, the procedure concerning appeals from the Court of First Instance shall be followed. Appeal from a decision of the Commission must be perfected within fifteen days from notification of such decision: Provided, however, That any decision of the Commission involving only questions of law, shall be appealed to the Supreme Court. No appeal shall stay the execution of any order or decision of the Commission unless the Commissioner himself or the Court of Appeals or the Supreme Court so orders. (d) Execution of Decision. Any decision or order of the Commission, after the same has become final and executory, shall be enforced and executed in the same manner as decisions of Courts of First Instance, and the Commission shall have the power to issue to the City or Provincial Sheriff or duly constituted authorities whom it may appoint, such writs of execution as may be necessary for the enforcement of such decision or order and any person who shall fail or refuse to comply with

such decision, order, or writ, after being required to do so shall, upon application by the Commission, be punished by the proper court for contempt. Section 8. Prohibitions. No person shall throw, run, drain, or otherwise dispose into any of the water, air and/or land resources of the Philippines, or cause, permit, suffer to be thrown, run, drain, allow to seep or otherwise dispose thereto any organic or inorganic matter or any substance in gaseous or liquid form that shall cause pollution thereof. No person shall perform any of the following activities without first securing a permit from the Commission for the discharge of all industrial wastes and other wastes which could cause pollution: 1. the construction, installation, modification or operation of any sewage works or any extension or addition thereto; 2. the increase in volume or strength of any wastes in excess of the permissive discharge specified under any existing permit; 3. the construction, installation or operation of any industrial or commercial establishments or any extension or modification thereof or addition thereto, the operation of which would cause an increase in the discharge of waste directly into the water, air and/or land resources of the Philippines or would otherwise alter their physical, chemical or biological properties in any manner not already lawfully authorized. Section 9. Penalties. (a) Any person found violating or failing to comply with any order, decision or regulation of the Commission for the control or abatement of pollution shall pay a fine not exceeding five thousand pesos per day for every day during which such violation or default continues; and the Commission is hereby authorized and empowered to impose the fine after due notice and hearing. The fines so imposed shall be paid to the Government of the Philippines through the Commission, and failure to pay the fine in any case within the time specified in the abovementioned Order or Decision shall be sufficient ground for the Commission to order the closure or the stoppage in the operation of the establishment being operated and/or managed by said person or persons until payment of the fines shall have been made. The Commission shall have the power and authority to issue corresponding writs of execution directing the City or Provincial Sheriff or other peace officers whom it may appoint to enforce the fine or the order of closure or stoppage of operations. Payment of fines may also be enforced by appropriate action in a court of competent jurisdiction. The remedies provided in this sub-section shall not be a bar to nor shall affect any other remedies provided for in this Decree but shall be cumulative and additional to such remedies. (b) Any person who shall violate any of the provisions of Section Eight of this Decree or its implementing rules and regulations, or any Order or Decision of the Commission, shall be liable to a penalty of not to exceed one thousand pesos for each day during which the violation continues, or by imprisonment of from two years to six years, or by both fine and imprisonment, and in addition such person may be required or enjoined from continuing such violation as hereinafter provided. (c) Any person who shall refuse, obstruct, or hamper the entry of the duly authorized representatives of the Commission into any property of the pubic domain or private property devoted to industrial manufacturing, processing or commercial use during reasonable hours for the purpose of inspecting or investigating the conditions therein relating to pollution or possible or imminent pollution, shall be liable to a fine not exceeding two hundred pesos or imprisonment of not exceeding one month, or both. (d) Any person who violates any of the provisions of, or fails to perform any duty imposed by this Decree or its implementing rules and regulations or by Order or Decision of the Commission promulgated pursuant to this Decree hereby causing the death of fish or other aquatic life, shall in addition to the penalty above prescribed, be liable to pay the government for damages for fish or aquatic life destroyed.

(e) In case the violator is a juridical person, the penalty shall be imposed on the managing head responsible for the violation. Section 10. Jurisdiction. The Commission shall have no jurisdiction over waterworks or sewage system operated by the Metropolitan Waterworks Sewerage System, but the rules and regulations issued by the Commission for the protection and prevention of pollution under the authority herein granted shall supersede and prevail over any rules or regulations as may heretofore have been issued by other government agencies or instrumentalities on the same subject. In case of development projects involving specific human settlement sites or integrated regional or subregional projects, such as the Tondo Foreshore Development Authority and the Laguna Lake Development Authority, the Commission shall consult with the authorities charged with the planning and execution of such projects to ensure that their pollution control standards comply with those of the Commission. Once minimum pollution standards are established and agreed upon, the development authorities concerned may, by mutual agreement and prior consultation with the Commission, undertake the pollution control activities themselves. Section 11. Appropriations. Such amount as may be necessary to carry out the provisions of this Decree, which in no case shall be less than five million pesos, is hereby appropriated yearly for the operating expenses of the Commission out of any funds in the National Treasury. Section 12. Repealing Clause. Any provision of laws, presidential decree, executive order, rules and regulations and/or parts thereof inconsistent with the provisions of this Decree, are hereby repealed and/or modified accordingly. Section 13. Effectivity. This Decree shall take effect immediately. Done in the City of Manila, this 18th day of August, in the year of Our Lord, nineteen hundred and seventysix.

Republic of the Philippines Congress of the Philippines Metro Manila Fourteenth Congress Third Regular Session Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine. REPUBLIC ACT NO. 9729 AN ACT MAINSTREAMING CLIMATE CHANGE INTO GOVERNMENT POLICY FORMULATIONS, ESTABLISHING THE FRAMEWORK STRATEGY AND PROGRAM ON CLIMATE CHANGE, CREATING FOR THIS PURPOSE THE CLIMATE CHANGE COMMISSION, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: Section 1. Title. This Act shall be known as the Climate Change Act of 2009. Section 2. Declaration of Policy. It is the policy of the State to afford full protection and the advancement of the right of the people to a healthful ecology in accord with the rhythm and harmony of nature. In this light, the State has adopted the Philippine Agenda 21 framework which espouses sustainable development, to fulfill human needs while maintaining the quality of the natural environment for current and future generations.

Towards this end, the State adopts the principle of protecting the climate system for the benefit of humankind, on the basis of climate justice or common but differentiated responsibilities and the Precautionary Principle to guide decision-making in climate risk management. As a party to the United Nations Framework Convention on Climate Change, the State adopts the ultimate objective of the Convention which is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system which should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.1awphil As a party to the Hyogo Framework for Action, the State likewise adopts the strategic goals in order to build national and local resilience to climate change-related disasters. Recognizing the vulnerability of the Philippine archipelago and its local communities, particularly the poor, women, and children, to potential dangerous consequences of climate change such as rising seas, changing landscapes, increasing frequency and/or severity of droughts, fires, floods and storms, climaterelated illnesses and diseases, damage to ecosystems, biodiversity loss that affect the countrys environment, culture, and economy, the State shall cooperate with the global community in the resolution of climate change issues, including disaster risk reduction. It shall be the policy of the State to enjoin the participation of national and local governments, businesses, nongovernment organizations, local communities and the public to prevent and reduce the adverse impacts of climate change and, at the same time, maximize the benefits of climate change. It shall also be the policy of the State to incorporate a gender-sensitive, pro-children and pro-poor perspective in all climate change and renewable energy efforts, plans and programs. In view thereof, the State shall strengthen, integrate, consolidate and institutionalize government initiatives to achieve coordination in the implementation of plans and programs to address climate change in the context of sustainable development. Further recognizing that climate change and disaster risk reduction are closely interrelated and effective disaster risk reduction will enhance climate change adaptive capacity, the State shall integrate disaster risk reduction into climate change programs and initiatives. Cognizant of the need to ensure that national and subnational government policies, plans, programs and projects are founded upon sound environmental considerations and the principle of sustainable development, it is hereby declared the policy of the State to systematically integrate the concept of climate change in various phases of policy formulation, development plans, poverty reduction strategies and other development tools and techniques by all agencies and instrumentalities of the government. Section 3. Definition of Terms. For purposes of this Act, the following shall have the corresponding meanings: (a) Adaptation refers to the adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. (b) Adaptive capacity refers to the ability of ecological, social or economic systems to adjust to climate change including climate variability and extremes, to moderate or offset potential damages and to take advantage of associated opportunities with changes in climate or to cope with the consequences thereof. (c) Anthropogenic causes refer to causes resulting from human activities or produced by human beings. (d) Climate Change refers to a change in climate that can be identified by changes in the mean and/or variability of its properties and that persists for an extended period typically decades or longer, whether due to natural variability or as a result of human activity. (e) Climate Variability refers to the variations in the average state and in other statistics of the climate on all temporal and spatial scales beyond that of individual weather events. (f) Climate Risk refers to the product of climate and related hazards working over the vulnerability of human and natural ecosystems.

(g) Disaster refers to a serious disruption of the functioning of a community or a society involving widespread human, material, economic or environmental losses and impacts which exceed the ability of the affected community or society to cope using its own resources. (h) Disaster risk reduction refers to the concept and practice of reducing disaster risks through systematic efforts to analyze and manage the causal factors of disasters, including through reduced exposure to hazards, lessened vulnerability of people and property, wise management of land and the environment, and improved preparedness for adverse events. (i) Gender mainstreaming refers to the strategy for making womens as well as mens concerns and experiences an integral dimension of the design, implementation, monitoring, and evaluation of policies and programs in all political, economic, and societal spheres so that women and men benefit equally and inequality is not perpetuated. It is the process of assessing the implications for women and men of any planned action, including legislation, policies, or programs in all areas and at all levels. (j) Global Warming refers to the increase in the average temperature of the Earths nearsurface air and oceans that is associated with the increased concentration of greenhouse gases in the atmosphere. (k) Greenhouse effect refers to the process by which the absorption of infrared radiation by the atmosphere warms the Earth. (l) Greenhouse gases (GHG) refers to constituents of the atmosphere that contribute to the greenhouse effect including, but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. (m) Mainstreaming refers to the integration of policies and measures that address climate change into development planning and sectoral decision-making. (n) Mitigation in the context of climate change, refers to human intervention to address anthropogenic emissions by sources and removals by sinks of all GHG, including ozone- depleting substances and their substitutes. (o) Mitigation potential shall refer to the scale of GHG reductions that could be made, relative to emission baselines, for a given level of carbon price (expressed in cost per unit of carbon dioxide equivalent emissions avoided or reduced). (p) Sea level rise refers to an increase in sea level which may be influenced by factors like global warming through expansion of sea water as the oceans warm and melting of ice over land and local factors such as land subsidence. (q) Vulnerability refers to the degree to which a system is susceptible to, or unable to cope with, adverse effects of climate change, including climate variability and extremes. Vulnerability is a function of the character, magnitude, and rate of climate change and variation to which a system is exposed, its sensitivity, and its adaptive capacity. Section 4. Creation of the Climate Change Commission. There is hereby established a Climate Change Commission, hereinafter referred to as the Commission. The Commission shall be an independent and autonomous body and shall have the same status as that of a national government agency. It shall be attached to the Office of the President. The Commission shall be the sole policy-making body of the government which shall be tasked to coordinate, monitor and evaluate the programs and action plans of the government relating to climate change pursuant to the provisions of this Act. The Commission shall be organized within sixty (60) days from the effectivity of this Act.

Section 5. Composition of the Commission. The Commission shall be composed of the President of the Republic of the Philippines who shall serve as the Chairperson, and three (3) Commissioners to be appointed by the President, one of whom shall serve as the Vice Chairperson of the Commission. The Commission shall have an advisory board composed of the following: (a) Secretary of the Department of Agriculture; (b) Secretary of the Department of Energy; (c) Secretary of the Department of Environment and Natural Resources; (d) Secretary of the Department of Education; (e) Secretary of the Department of Foreign Affairs; (f) Secretary of the Department of Health; (g) Secretary of the Department of the Interior and Local Government; (h) Secretary of the Department of National Defense, in his capacity as Chair of the National Disaster Coordinating Council; (i) Secretary of the Department of Public Works and Highways; (j) Secretary of the Department of Science and Technology; (k) Secretary of the Department of Social Welfare and Development; (l) Secretary of the Department of Trade and Industry; (m) Secretary of the Department of Transportation and Communications; (n) Director-General of the National Economic and Development Authority, in his capacity as Chair of the Philippine Council for Sustainable Development; (o) Director-General of the National Security Council; (p) Chairperson of the National Commission on the Role of Filipino Women; (q) President of the League of Provinces; (r) President of the League of Cities; (s) President of the League of Municipalities; (t) President of the Liga ng mga Barangay; (u) Representative from the academe; (v) Representative from the business sector; and (w) Representative from nongovernmental organizations. At least one (1) of the sectoral representatives shall come from the disaster risk reduction community. The representatives shall be appointed by the President from a list of nominees submitted by their respective groups. They shall serve for a term of six (6) years without reappointment unless their

representation is withdrawn by the sector they represent. Appointment to any vacancy shall be only for the unexpired term of the predecessor. Only the ex officio members of the advisory board shall appoint a qualified representative who shall hold a rank of no less than an Undersecretary. Section 6. Meetings of the Commission. The Commission shall meet once every three (3) months, or as often as may be deemed necessary by the Chairperson. The Chairperson may likewise call upon other government agencies for the proper implementation of this Act. Section 7. Qualifications, Tenure, Compensation of Commissioners. The Commissioners must be Filipino citizens, residents of the Philippines, at least thirty (30) years of age at the time of appointment, with at least ten (10) years of experience on climate change and of proven honesty and ntegrity. The Commissioners shall be experts in climate change by virtue of their educational background, training and experience: Provided, That at least one (1) Commissioner shall be female: Provided, further, That in no case shall the Commissioners come from the same sector: Provided, finally, That in no case shall any of the Commissioners appoint representatives to act on their behalf. The Commissioners shall hold office for a period of six (6) years, and may be subjected to reappointment: Provided, That no person shall serve for more than two (2) consecutive terms: Provided, further, That in case of a vacancy, the new appointee shall fully meet the qualifications of a Commissioner and shall hold office for the unexpired portion of the term only: Provided, finally, That in no case shall a Commissioner be designated in a temporary or acting capacity. The Vice Chairperson and the Commissioners shall have the rank and privileges of a Department Secretary and Undersecretary, respectively. They shall be entitled to corresponding compensation and other emoluments and shall be subject to the same disqualifications. Section 8. Climate Change Office. There is hereby created a Climate Change Office that shall assist the Commission. It shall be headed by a Vice Chairperson of the Commission who shall act as the Executive Director of the Office. The Commission shall have the authority to determine the number of staff and create corresponding positions necessary to facilitate the proper implementation of this Act, subject to civil service laws, rules and regulations. The officers and employees of the Commission shall be appointed by the Executive Director. Section 9. Powers and Functions of the Commission. The Commission shall have the following powers and functions: (a) Ensure the mainstreaming of climate change, in synergy with disaster risk reduction, into the national, sectoral and local development plans and programs; (b) Coordinate and synchronize climate change programs of national government agencies; (c) Formulate a Framework Strategy on Climate Change to serve as the basis for a program for climate change planning, research and development, extension, and monitoring of activities on climate change; (d) Exercise policy coordination to ensure the attainment of goals set in the framework strategy and program on climate change; (e) Recommend legislation, policies, strategies, programs on and appropriations for climate change adaptation and mitigation and other related activities; (f) Recommend key development investments in climate- sensitive sectors such as water resources, agriculture, forestry, coastal and marine resources, health, and infrastructure to ensure the achievement of national sustainable development goals; (g) Create an enabling environment for the design of relevant and appropriate risk-sharing and risktransfer instruments;

(h) Create an enabling environment that shall promote broader multi-stakeholder participation and integrate climate change mitigation and adaptation; (i) Formulate strategies on mitigating GHG and other anthropogenic causes of climate change; (j) Coordinate and establish a close partnership with the National Disaster Coordinating Council in order to increase efficiency and effectiveness in reducing the peoples vulnerability to climaterelated disasters; (k) In coordination with the Department of Foreign Affairs, represent the Philippines in the climate change negotiations; (l) Formulate and update guidelines for determining vulnerability to climate change impacts and adaptation assessments and facilitate the provision of technical assistance for their implementation and monitoring; (m) Coordinate with local government units (LGUs) and private entities to address vulnerability to climate change impacts of regions, provinces, cities and municipalities; (n) Facilitate capacity building for local adaptation planning, implementation and monitoring of climate change initiatives in vulnerable communities and areas; (o) Promote and provide technical and financial support to local research and development programs and projects in vulnerable communities and areas; and (p) Oversee the dissemination of information on climate change, local vulnerabilities and risks, relevant laws and protocols and adaptation and mitigation measures. Section 10. Panel of Technical Experts. The Commission shall constitute a national panel of technical experts consisting of practitioners in disciplines that are related to climate change, including disaster risk reduction. The Panel shall provide technical advice to the Commission in climate science, technologies, and best practices for risk assessment and enhancement of adaptive capacity of vulnerable human settlements to potential impacts of climate change. The Commission shall set the qualifications and compensation for the technical experts. It shall provide resources for the operations and activities of the Panel. Section 11. Framework Strategy and Program on Climate Change. The Commission shall, within six (6) months from the effectivity of this Act, formulate a Framework Strategy on Climate Change. The Framework shall serve as the basis for a program for climate change planning, research and development, extension, and monitoring of activities to protect vulnerable communities from the adverse effects of climate change. The Framework shall be formulated based on climate change vulnerabilities, specific adaptation needs, and mitigation potential, and in accordance with the international agreements. The Framework shall be reviewed every three (3) years, or as may be deemed necessary. Section 12. Components of the Framework Strategy and Program on Climate Change. The Framework shall include, but not limited to, the following components: (a) National priorities; (b) Impact, vulnerability and adaptation assessments; (c) Policy formulation;

(d) Compliance with international commitments; (e) Research and development; (f) Database development and management; (g) Academic programs, capability building and mainstreaming; (h) Advocacy and information dissemination; (i) Monitoring and evaluation; and (j) Gender mainstreaming. Section 13. National Climate Change Action Plan. The Commission shall formulate a National Climate Change Action Plan in accordance with the Framework within one (1) year after the formulation of the latter. The National Climate Change Action Plan shall include, but not limited to, the following components: (a) Assessment of the national impact of climate change; (b) The identification of the most vulnerable communities/areas, including ecosystems to the impacts of climate change, variability and extremes; (c) The identification of differential impacts of climate change on men, women and children; (d) The assessment and management of risk and vulnerability; (e) The identification of GHG mitigation potentials; and (f) The identification of options, prioritization of appropriate adaptation measures for joint projects of national and local governments. Section 14. Local Climate Change Action Plan. The LGUs shall be the frontline agencies in the formulation, planning and implementation of climate change action plans in their respective areas, consistent with the provisions of the Local Government Code, the Framework, and the National Climate Change Action Plan. Barangays shall be directly involved with municipal and city governments in prioritizing climate change issues and in identifying and implementing best practices and other solutions. Municipal and city governments shall consider climate change adaptation, as one of their regular functions. Provincial governments shall provide technical assistance, enforcement and information management in support of municipal and city climate change action plans. Inter-local government unit collaboration shall be maximized in the conduct of climate- related activities. LGUs shall regularly update their respective action plans to reflect changing social, economic, and environmental conditions and emerging issues. The LGUs shall furnish the Commission with copies of their action plans and all subsequent amendments, modifications and revisions thereof, within one (1) month from their adoption. The LGUs shall mobilize and allocate necessary personnel, resources and logistics to effectively implement their respective action plans. The local chief executive shall appoint the person responsible for the formulation and implementation of the local action plan. It shall be the responsibility of the national government to extend technical and financial assistance to LGUs for the accomplishment of their Local Climate Change Action Plans.

The LGU is hereby expressly authorized to appropriate and use the amount from its Internal Revenue Allotment necessary to implement said local plan effectively, any provision in the Local Government Code to the contrary notwithstanding. Section 15. Role of Government Agencies. To ensure the effective implementation of the framework strategy and program on climate change, concerned agencies shall perform the following functions: (a) The Department of Education (DepED) shall integrate climate change into the primary and secondary education curricula and/or subjects, such as, but not limited to, science, biology, sibika, history, including textbooks, primers and other educational materials, basic climate change principles and concepts; (b) The Department of the Interior and Local Government (DILG) and Local Government Academy shall facilitate the development and provision of a training program for LGUs in climate change. The training program shall include socioeconomic, geophysical, policy, and other content necessary to address the prevailing and forecasted conditions and risks of particular LGUs. It shall likewise focus on women and children, especially in the rural areas, since they are the most vulnerable; (c) The Department of Environment and Natural Resources (DENR) shall oversee the establishment and maintenance of a climate change information management system and network, including on climate change risks, activities and investments, in collaboration with other concerned national government agencies, institutions and LGUs; (d) The Department of Foreign Affairs (DFA) shall review international agreements related to climate change and make the necessary recommendation for ratification and compliance by the government on matters pertaining thereto; (e) The Philippine Information Agency (PIA) shall disseminate information on climate change, local vulnerabilities and risk, relevant laws and protocols and adaptation and mitigation measures; and (f) Government financial institutions, shall, any provision in their respective charters to the contrary notwithstanding, provide preferential financial packages for climate change- related projects. In consultation with the Bangko Sentral ng Pilipinas (BSP), they shall, within thirty (30) days from the effectivity of this Act, issue and promulgate the implementing guidelines therefor. The Commission shall evaluate, recommend the approval of loans and monitor the use of said funds of LGUs. Section 16. Coordination with Various Sectors. In the development and implementation of the National Climate Change Action Plan, and the local action plans, the Commission shall coordinate with the nongovernment organizations (NGOs), civic organizations, academe, peoples organizations, the private and corporate sectors and other concerned stakeholder groups. Section 17. Authority to Receive Donations and/or Grants. The Commission is hereby authorized to accept grants, contributions, donations, endowments, bequests, or gifts in cash, or in kind from local and foreign sources in support of the development and implementation of climate change programs and plans: Provided, That in case of donations from foreign governments, acceptance thereof shall be subject to prior clearance and approval of the President of the Philippines upon recommendation of the Secretary of Foreign Affairs: Provided, further, That such donations shall not be used to fund personal services expenditures and other operating expenses of the Commission. The proceeds shall be used to finance: (a) Research, development, demonstration and promotion of technologies; (b) Conduct of assessment of vulnerabilities to climate change impacts, resource inventory, and adaptation capability building; (c) Advocacy, networking and communication activities in the conduct of information campaign; and

(d) Conduct of such other activities reasonably necessary to carry out the objectives of this Act, as may be defined by the Commission. Section 18. Funding Allocation for Climate Change. All relevant government agencies and LGUs shall allocate from their annual appropriations adequate funds for the formulation, development and implementation, including training, capacity building and direct intervention, of their respective climate change programs and plans. It shall also include public awareness campaigns on the effects of climate change and energy-saving solutions to mitigate these effects, and initiatives, through educational and training programs and micro-credit schemes, especially for women in rural areas. In subsequent budget proposals, the concerned offices and units shall appropriate funds for program/project development and implementation including continuing training and education in climate change.1avvphi1 Section 19. Joint Congressional Oversight Committee. There is hereby created a Joint Congressional Oversight Committee to monitor the implementation of this Act. The Oversight Committee shall be composed of five (5) Senators and five (5) Representatives to be appointed by the Senate President and the Speaker of the House of Representatives, respectively. The Oversight Committee shall be co-chaired by a Senator and a Representative to be designated by the Senate President and the Speaker of the House of Representatives, respectively. Its funding requirement shall be charged against the appropriations of Congress. Section 20. Annual Report. The Commission shall submit to the President and to both Houses of Congress, not later than March 30 of every year following the effectivity of this Act, or upon the request of the Congressional Oversight Committee, a report giving a detailed account of the status of the implementation of this Act, a progress report on the implementation of the National Climate Change Action Plan and recommend legislation, where applicable and necessary. LGUs shall submit annual progress reports on the implementation of their respective local action plan to the Commission within the first quarter of the following year. Section 21. Appropriations. The sum of Fifty million pesos (Php50,000,000.00) is hereby appropriated as initial operating fund in addition to the unutilized fund of the Presidential Task Force on Climate Change and the Office of the Presidential Adviser on Global Warming and Climate Change. The sum shall be sourced from the Presidents contingent fund. Thereafter, the amount necessary to effectively carry out the provisions of this Act shall be included in the annual General Appropriations Act. Section 22. Implementing Rules and Regulations. Within ninety (90) days after the approval of this Act, the Commission shall, upon consultation with government agencies, LGUs, private sector, NGOs and civil society, promulgate the implementing rules and regulations of this Act: Provided, That failure to issue rules and regulations shall not in any manner affect the executory nature of the provisions of this Act. Section 23. Transitory Provisions. Upon the organization of the Commission, the Presidential Task Force on Climate Change created under Administrative Order No. 171 and the Inter-Agency Committee on Climate Change created by virtue of Administrative Order No. 220, shall be abolished: Provided, That their powers and functions shall be absorbed by the Commission: Provided, further, That the officers and employees thereof shall continue in a holdover capacity until such time as the new officers and employees of the Commission shall have been duly appointed pursuant to the provisions of this Act. All qualified regular or permanent employees who may be transferred to the Commission shall not suffer any loss in seniority or rank or decrease in emoluments. Any employee who cannot be absorbed by the Commission shall be entitled to a separation pay under existing retirement laws. Section 24. Separability Clause. If for any reason any section or provision of this Act is declared as unconstitutional or invalid, the other sections or provisions hereof shall not be affected thereby. Section 25. Repealing Clause. All laws, ordinances, rules and regulations, and other issuances or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly. Section 26. Effectivity. This Act shall take effect fifteen (15) days after the completion of its publication in the Official Gazette or in at least two (2) national newspapers of general circulation.

Republic of the Philippines Congress of the Philippines Metro Manila Thirteenth Congress Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand six. Republic Act No. 9367 January 12, 2007

AN ACT TO DIRECT THE USE OF BIOFUELS, ESTABLISHING FOR THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. Short Title - This act shall be known as the "Biofuels Act of 2006". SEC. 2. Declaration Policy - It is hereby declared the policy of the State to reduce dependence on imported fuels with due regard to the protection of public health, the environment, and the natural ecosystems consistent with the country's sustainable economic growth that would expand opportunities for livelihood by mandating the use of biofuels as a measure to: a) Develop and utilize indigenous renewable and sustainable-sources clean energy sources to reduce dependence on imported oil. b) Mitigate toxic and greenhouse gas (GSG) emissions; c) increase rural employment and income; and d) Ensure the availability of alternative and renewable clean energy without any detriment to the natural ecosystem, biodiversity and food reserves of the country. SEC. 3. Definition of terms - As used in this act, the following term shall be taken to means as follows: a) AFTA - shall refer to the ASIAN free trade agreement initiated by the Association of South East Asian Nation; b) Alternative Fuel Vehicle/Engine - shall refer to vehicle/engines that use alternative fuels such as biodiesel, bioethanel, natural gas, electricity, hydrogen and automotive LPG instead of gasoline and diesel;

c) Bioethanol fuel - shall refer to ethanol (C2H30H) produce from feedback and other biomass. d) Biodiesel - shall refer to Fatty Acid Methyl Ester (FAME) or mono-alkyl ester delivered from vegetable oil, or animal fats and other biomass-derived oils that shall be technically proven and approved by the DOE for use in diesel engines, with quality specifications in accordance with the Philippine National Standards (PNS) e) Bioethanol fuels - shall refer to the hydrous and anhydrous bioethanol suitably denatured for use as motor fuel with quality specifications in accordance with the PNS; f) Biofuel - shall refer to the bioethanol and biodiesel and other fuels made from biomass and primary used for motive, thermal power generation, with quality specifications in accordance with PNS; g) Biomass - shall refer to any organic matter, particularly cellulosic or ligno-cellulosic matter, which is available on a renewable or recurring basis, including trees, crops and associated residues, plant fiber, poultry litter and other animal wastes, industrial wastes and biodegradable component of solid waste; h) DA - shall refer to the Department of Agriculture created under Executive Order No. 116, as amended; i) Diesel - shall refer to the refined petroleum distillate, which may contain small amount of hydrocarbon or nonhydrocarbon additives to improve ignition quality or other characteristic, suitable for compression ignition engine and other suitable types of engines with quality specifications in accordance with PNS; j) DENR - shall refer to the Department of Environment and Natural Resources created under Executive No. 192, as amended; k) DOE - shall refer to the Department of Energy created under Republic Act No. 7638, as amended; l) DOLE - shall refer to the Department of Labor and Employment created under Executive Order No. 126, as amended; m) DOF - shall refer to the Department of Finance created under Administrative Orders No. 127 and 127-A; n) DOST - shall refer to the Department of Science and Technology created under Republic Act no. 2067 o) DOTC - shall refer to the Department of Transportation and Communication created under Executive Order No. 125-A, as amended; p) DTI - shall refer to the Department of Trade and Industry created under Executive Order No. 133; q) Feedstock - shall refer to the organic sources such as molasses, sugarcane, cassava, coconut, jatropha, sweet sorghum or other biomass used in the production of biofuels; r) Gasoline shall refer to volatile mixture of liquid hydrocarbon, generally containing small amounts of additives suitable for use as fuel in spark-ignition internal combustion engines with quality specifications in accordance with the PNS; s) Motor fuel - shall refer to all volatile and inflammable liquids and gas produced, blended or compounded for the purpose of, or which are suitable or practicable for, operating motor vehicle; t) MTBE - shall refer to Methyl Tertiary Butyl Ether; u) NBB or Board - shall refer to the National Biofuel Board created under Section 8 of this Act ;

v) Oil Company - shall refer to any entity that distributes and sells petroleum fuel products; w) Oxygenate - shall refer to substances, which, when added to gasoline, increase the amount of oxygen in that gasoline blend; x) PNS shall refer to the Philippine National Standard; consistent with section 26 of R.A. No. 8749 otherwise known as the 'Philippine Clean Air Act of 1999; y) Renewable Energy Sources - shall refer to energy sources that do not have an upper limit on the total quantity to be used. Such resources are renewable on a regular basis; and z) WTO - shall refer to the World Trade Organization. SEC. 4. Phasing Out of the Use of Harmful Gasoline Additives and/or Oxygenates. Within six months from affectivity of this Act, the DOE, according to duly accepted international standards, shall gradually phase out the use of harmful gasoline additives such as, but not limited to MTBE SEC. 5. Mandatory Use of Biofuels. Pursuant to the above policy, it is hereby mandated that all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components as follows: 5.1 Within two years from the effectivity of this Act, at least five percent (5%) bioethanol shall comprise the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country; subject to requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume Provided, that ethanol blend conforms to PNS. 5.2 Within four years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility thereafter recommend to DOE to mandate a minimum of ten percent(10%) blend of bioethanol by volume into all gasoline fuel distributed and sold by each and every oil company in the country. In the event of supply shortage of locally-produced bioethanol during the fouryear period, oil companies shall be allowed to import bioethanol but only to the extent of the shortage as may be determined by NBB. 5.3 Within three months from the effectivity of this Act, a minimum of one percent (1%) biodiesel by volume shall be blended into all diesel engine fuels sold in the country: Provided That the biodiesel blend conforms to PNS for biodiesel. Within two years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility and thereafter recommend to DOE to mandate a minimum of two percent (2%) blend of biodiesel by volume which may be increased taking into account considerations including but not limited to domestic supply and availability of locally-sourced biodiesel component. SEC. 6. Incentive Scheme To encourage investments in the production, distribution and use of locallyproduced biofuels at and above the minimum mandated blends, and without prejudice to enjoying applicable incentives and benefits under existing laws, rules and regulations, the following additional incentives are hereby provided under this Act. a) Specific tax The specific tax on local or imported biofuels component, per liter of volume shall be zero (0). The gasoline and diesel fuel component, shall remain subject to the prevailing specific tax rate. b) Value Added Tax The sale of raw material used in the production of biofuels such as, but not limited to, coconut, jatropha, sugarcane, cassava, corn, and sweet sorghum shall be exempt from the value added tax.

c) Water Effluents All water effluents, such as but not limited to distillery slops from the production of biofuels used as liquid fertilizer and for other agricultural purposes are considered "reuse", and are therefore, exempt from wastewater charges under the system provided under section 13 of R.A No. 9275, also known as the Philippine Clean Water Act: Provided, however, That such application shall be in accordance with the guidelines issued pursuant to R.A. No. 9275, subject to the monitoring and evaluation by DENR and approved by DA. d) Financial Assistance Government financial institutions, such as the Development Bank of the Philippines, Land Bank of the Philippines, Quedancor and other government institutions providing financial services shall, in accordance with and to the extent by the enabling provisions of their respective charters or applicable laws, accord high priority to extend financing to Filipino citizens or entities, at least sixty percent (60%) of the capital stock of which belongs to citizens of the Philippines that shall engage in activities involving production storage, handling and transport of biofuel feedstock, including the blending of biofuels with petroleum, as certified by the DOE. SEC. 7. Powers and Functions of the DOE. In addition to its existing powers and functions, the DOE is hereby mandated to take appropriate and necessary actions to implement the provisions of this Act. In pursuance thereof, it shall within three months from effectivity of this Act: a) Formulate the implementing rules and regulations under Section 15 of this Act; b) Prepare the Philippines Biofuel program consistent with the Philippine Energy Plan and taking into consideration the DOE's existing biofuels program; c) Establish technical fuel quality standards for biofuels and biofuel-blended gasoline and diesel which comply with the PNS. d) Establish guidelines for the transport, storage and handling of biofuels; e) Impose fines and penalties against persons or entities found to have committed any of the prohibited acts under Section 12 (b) to (e) of this Act; f) Stop the sale of biofuels and biofuel-blended gasoline and diesel that are not in conformity with the specifications provided for under Section 5 of this Act, the PNS and corresponding issuances of the Department; and g) Conduct an information campaign to promote the use of biofuels SEC. 8. Creation of the National Biofuel Board (NBB) The National Biofuel Board is hereby created. It shall be composed of the Secretary of the DOE as chairman and the Secretaries of the DTI, DOST, DA, DOF, DOLE, and the Administrators of the PCA, and the SRA, as members. The DOE Secretary, in his capacity as Chairperson, shall, within one month from the effectivity of this Act, convene the NBB. The Board shall by assisted by a Technical Secretariat attached to the Office of the Secretary of the DOE. It shall be headed by a Director to be appointed by the Board. The number of staff of the Technical Secretariat and the corresponding positions shall be determined by the Board, subject to approval by the Department of Budget and Management (DBM) and existing civil services rules and regulations. SEC. 9. Powers and Functions of the NBB. The NBB shall have the following powers and functions: a) Monitor the implementation of, and evaluate for further expansion, the National Biofuel Program (NBP) prepares by the DOE pursuant to Section 7 (b) of this Act;

b) Monitor the supply and utilization of biofuels and biofuel-blends and recommend appropriate measures in cases of shortage of feedstock supply for approval of the Secretary of DOE. For this purpose: 1. The NBB is empowered to require all entities engaged in the production, blending and distribution of biofuels to submit reports of their actual and projected sales and inventory of biofuels, in a format to be prescribed for this purpose; and 2. The NBB shall determine availability of locally-sourced biofuels and recommend to DOE the appropriate level or percentage of locallysourced biofuels to the total annual volume of gasoline and diesel sold and distributed in the country. c) Review and recommend to DOE the adjustment in the minimum mandated biofuel blends subject to the availability of locallysourced biofuels: Provided, That the minimum blend may be decreased only within the first four years from the effectivity of this Act. Thereafter, the minimum blends of the five percent (5%) and two percent (2%) for bioethanol and biodiesel respectively, shall not be decreased; d) Recommend to DOE a program that will ensure the availability of alternative fuel technology for vehicles, engine and parts in consonance with the mandated minimum biofuel-blends, and to maximize the utilization of biofuels including other biofuels; e) Recommend to DOE the use of biofuelblends in air transport taking into account safety and technical viability; and f) Recommend specific actions to be executed by the DOE and other appropriate government agencies concerning the implementation of the NBP, including its economic, technical, environment, and social impact. SEC. 10. Security of Domestic Sugar Supply. - Any provision of this Act to the contrary notwithstanding, the SRA, pursuant to its mandate, shall, at all times, ensures that the supply of sugar is sufficient to meet the domestic demand and that the price of sugar is stable. To this end, the SRA shall recommend and the proper agencies shall undertake the importation of sugar whenever necessary and shall make appropriate adjustments to the minimum access volume parameters for sugar in the Tariff and Custom Code. SEC. 11. Role of Government Agencies. To ensure the effective implementation of the NBP, concerned agencies shall perform the following functions: a) The DOF shall monitor the production and importation of biofuels through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); b) The DOST and the DA shall coordinate in identifying and developing viable feedstock for the production of biofuels; c) The DOST, through the Philippine Council for Industry and Energy Research and Development (PCIERD), shall develop and implement a research and development program supporting a sustainable improvement in biofuel production and utilization technology. It shall also publish and promote related technologies developed locally and abroad. d) The DA through its relevant agencies shall: (1) Within three months from effectivity of this Act, develop a national program for the production of crops for use as feedstock supply. For this purpose, the Administrators of the SRA and the PCA, and other DA-attached agencies shall, within their authority develop and implement policies supporting the Philippine Biofuel Program and submit the same to the Secretary of the DA for consideration;

(2) Ensure increased productivity and sustainable supply of biofuel feedstocks. It shall institutes program that would guarantee that a sufficient and reliable supply of feedstocks is allocated for biofuel production; and (3) Publish information on available and suitable areas for cultivation and production of such crops. e) The DOLE shall: (1) Promote gainful livelihood opportunities and facilitate productive employment through effective employment services and regulation; (2) Ensure the access of workers to productive resources and social coverage; and (3) Recommend plans, policies and programs that will enhance the social impact of the NBP. f) The Tariff Commission, in coordination with the appropriate government agencies, shall create and classify a tariff line for biofuels and biofuel-blends in consideration of WTO and AFTA agreements; and g) The local government units (LGU) shall assist the DOE in monitoring the distribution sale in use of biofuels and biofuel-blends SEC. 12. Prohibited Acts. The following acts shall be prohibited: a) Diversion of biofuels, whether locally produced or imported, to purposes other than those envisioned in this Act; b) Sale of biofuelblended gasoline or diesel that fails to comply with the minimum biofuelblend by volume in violation of the requirement under Section 5 of this Act; c) Distribution, sale and use of automotive fuel containing harmful additives such as, but not limited to, MTBE at such concentration exceeding the limits to be determined by the NBB. d) Noncompliance with the established guidelines of the PNS and DOE adopted for the implementation of this Act; and e) False labeling of gasoline, diesel, biofuels and biofuel-blended gasoline and diesel. SEC. 13. Penal Provisions. - Any person, who willfully aids or abets in the commission of a crime prohibited herein or who causes the commission of any such act by another shall be liable in the same manner as the principal. In the case of association, partnerships or corporations, the penalty shall be imposed on the partner, president, chief operating officer, chief executive officer, directors or officers, responsible for the violation. The commission of an act enumerated in Section 12, upon conviction thereof, shall suffer the penalty of one year to five years imprisonment and a fine ranging from a minimum of One million pesos (P 1,000,000.00) to Five million pesos (P 5,000,000.00). In addition, the DOE shall confiscate any amount of such products that fail to comply with the requirements of Sections 4 & 5 of this Act, and implementing issuance of the DOE. The DOE shall determine the appropriate process and the manner of disposal and utilization of the confiscated products. The DOE is also empowered to stop and suspend the operation of businesses for refusal to comply with any order or instruction of the DOE Secretary in the exercise of his functions under this Act. Further, the DOE is empowered to impose administrative fines and penalties for any violation of the provisions of this Act, implementing rules and regulations and other issuance relative to this Act.

SEC. 14. Appropriations. - Such sums as may be necessary for the initial implementation of this Act shall be taken from the current appropriations of the DOE. Thereafter, the fund necessary to carry out provisions of this Act shall be included in the annual General Appropriation Act. SEC. 15. Implementing Rules and Regulations (IRR). - The DOE, in consultation with the NBB, the stakeholders and the other agencies concerned, shall within three months from affectivity of this Act, promulgated the IRR of this Act: Provided, That prior to its effectively, the draft of the IRR shall be posted at the DOE web site for at least one month, and shall be published in at least two newspapers of general circulation. SEC. 16. Congressional Oversight Committee. - Upon affectivity of this act, a Congressional Committee, hereinafter referred to as the Biofuels Oversight Committee, is hereby constituted. The biofuels oversight committee shall be compose of (14) members, with the Chairmen of the Committees on Energy of both House of Congress as co-chairmen. The Chairmen of the Committee on Agriculture and Trade and Industry shall be ex officio members. An additional four members from each House, to be designated by the Senate President and Speaker of the House of Representatives, respectively. The minority shall be entitled to pro-rata representation but shall have at least one representative in the Biofuel Oversight Committee. SEC. 17. Benefits of Biofuel Workers. - This Act shall not in any way result in the forfeiture or diminution of existing benefits enjoyed by the sugar workers as prescribed under the R.A. No. 6982, or the Sugar Amelioration Act of 1991. In case sugarcane shall be used as feedstock. The NBB shall establish a mechanism similar to that provided under the Sugar Amelioration Act of 1991 for the benefit of other biofuel workers. SEC. 18. Special Clause. - This act shall not be interpreted as prejudicial to clean development mechanism (CDM) projects that cause carbon dioxide (CO2) and greenhouse gasses (GHG) emission reductions by means of biofuel use. SEC. 19. Repealing Clause. - The provision of Section 148 (d) of R.A. No. 8424, otherwise known as Tax Reform Act. of 1997, and all other laws, presidential decrees or issuance, executive orders, presidential proclamations. rules and regulations or part thereof inconsistent with the provisions of this Act, are hereby repealed, modified or amended accordingly. SEC. 20. Separability Clause. - If any provision of this Act is declared unconstitutional in the same shall not affect the validity and effectivity of the other provision hereof. SEC. 21. Effectivity. - This act shall effect fifteen (15) day after publication in at least two newspapers of general circulation.