RA 9729 (Climate Change Act)

adopts the strategic goals in order to build national and local resilience to climate changerelated disasters.

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

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, climate-related 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:

(f) Climate Risk refers to the product of climate and related hazards working over the
vulnerability of human and natural ecosystems.

(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.

(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.

(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.

(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
near-surface 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.

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.

(m) Mainstreaming refers to the integration of policies and measures that address
climate change into development planning and sectoral decision-making.
The Commission shall be organized within sixty (60) days from the effectivity of this Act.
(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 ozonedepleting 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.

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;

At least one (1) of the sectoral representatives shall come from the disaster risk reduction
community.

(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;

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.

(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;

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.

(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;

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.

(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.

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.

(b) Coordinate and synchronize climate change programs of national government

agencies;

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.

(d) Exercise policy coordination to ensure the attainment of goals set in the framework
strategy and program on climate change;

(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;

(e) Recommend legislation, policies, strategies, programs on and appropriations for

climate change adaptation and mitigation and other related activities;
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;

(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 risksharing and risk-transfer 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;

(p) Oversee the dissemination of information on climate change, local vulnerabilities and
risks, relevant laws and protocols and adaptation and mitigation measures.

(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 climate-related disasters;

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.

(k) In coordination with the Department of Foreign Affairs, represent the Philippines in the
climate change negotiations;

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.

(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;

The Commission shall set the qualifications and compensation for the technical experts. It
shall provide resources for the operations and activities of the Panel.

(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

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.

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 Framework shall be reviewed every three (3) years, or as may be deemed necessary.
The National Climate Change Action Plan shall include, but not limited to, the following
components:
Section 12. Components of the Framework Strategy and Program on Climate Change. The
Framework shall include, but not limited to, the following components:
(a) Assessment of the national impact of climate change;
(a) National priorities;

(b) The identification of the most vulnerable communities/areas, including ecosystems to

the impacts of climate change, variability and extremes;

(b) Impact, vulnerability and adaptation assessments;

(c) Policy formulation;

(c) The identification of differential impacts of climate change on men, women and
children;

(d) Compliance with international commitments;

(d) The assessment and management of risk and vulnerability;

(e) Research and development;

(e) The identification of GHG mitigation potentials; and

(f) Database development and management;

(f) The identification of options, prioritization of appropriate adaptation measures for joint
projects of national and local governments.

(g) Academic programs, capability building and mainstreaming;

(h) Advocacy and information dissemination;
(i) Monitoring and evaluation; and
(j) Gender mainstreaming.

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.

(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 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;

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.

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.

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

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.

Approved: October 23, 2009

RA 10121

REPUBLIC ACT No. 10121

AN ACT STRENGTHENING THE PHILIPPINE DISASTER RISK REDUCTION AND
MANAGEMENT SYSTEM, PROVIDING FOR THE NATIONAL DISASTER RISK
REDUCTION AND MANAGEMENT FRAMEWORK AND INSTITUTIONALIZING THE
NATIONAL DISASTER RISK REDUCTION AND MANAGEMENT PLAN, APPROPRIATING
FUNDS THEREFOR AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

(d) Adopt a disaster risk reduction and management approach that is holistic,
comprehensive, integrated, and proactive in lessening the socioeconomic and
environmental impacts of disasters including climate change, and promote the
involvement and participation of all sectors and all stakeholders concerned, at all levels,
especially the local community;
(e) Develop, promote, and implement a comprehensive National Disaster Risk Reduction
and Management Plan (NDRRMP) that aims to strengthen the capacity of the national
government and the local government units (LGUs), together with partner stakeholders,
to build the disaster resilience of communities, and to institutionalize arrangements and
measures for reducing disaster risks, including projected climate risks, and enhancing
disaster preparedness and response capabilities at all levels;

Section 1. Title. This Act shall be known as the Philippine Disaster Risk Reduction and
Management Act of 2010.

(f) Adopt and implement a coherent, comprehensive, integrated, efficient and responsive
disaster risk reduction program incorporated in the development plan at various levels of
government adhering to the principles of good governance such as transparency and
accountability within the context of poverty alleviation and environmental protection;

Section 2. Declaration of Policy. It shall be the policy of the State to:

(g) Mainstream disaster risk reduction and climate change in development processes
such as policy formulation, socioeconomic development planning, budgeting, and
governance, particularly in the areas of environment, agriculture, water, energy, health,
education, poverty reduction, land-use and urban planning, and public infrastructure and
housing, among others;

(a) Uphold the peoples constitutional rights to life and property by addressing the root
causes of vulnerabilities to disasters, strengthening the countrys institutional capacity for
disaster risk reduction and management and building the resilience of local communities
to disasters including climate change impacts;
(b) Adhere to and adopt the universal norms, principles and standards of humanitarian
assistance and the global effort on risk reduction as concrete expression of the countrys
commitment to overcome human sufferings due to recurring disasters;
(c) Incorporate internationally accepted principles of disaster risk management in the
creation and implementation of national, regional and local sustainable development and
poverty reduction strategies, policies, plans and budgets;

(h) Institutionalize the policies, structures, coordination mechanisms and programs with
continuing budget appropriation on disaster risk reduction from national down to local
levels towards building a disaster-resilient nation and communities;
(i) Mainstream disaster risk reduction into the peace process and conflict resolution
approaches in order to minimize loss of lives and damage to property, and ensure that
communities in conflict zones can immediately go back to their normal lives during
periods of intermittent conflicts;
(j) Ensure that disaster risk reduction and climate change measures are gender
responsive, sensitive to indigenous know ledge systems, and respectful of human rights;

(k) Recognize the local risk patterns across the country and strengthen the capacity of
LGUs for disaster risk reduction and management through decentralized powers,
responsibilities, and resources at the regional and local levels;
(l) Recognize and strengthen the capacities of LGUs and communities in mitigating and
preparing for, responding to, and recovering from the impact of disasters;
(m) Engage the participation of civil society organizations (CSOs), the private sector and
volunteers in the governments disaster risk reduction programs towards
complementation of resources and effective delivery of services to the Citizenry;
(n) Develop and strengthen the capacities of vulnerable and marginalized groups to
mitigate, prepare for, respond to, and recover from the effects of disasters;
(o) Enhance and implement a program where humanitarian aid workers, communities,
health professionals, government aid agencies, donors, and the media are educated and
trained on how they can actively support breastfeeding before and during a disaster
and/or an emergency; and
(p) Provide maximum care, assistance and services to individuals and families affected
by disaster, implement emergency rehabilitation projects to lessen the impact of disaster,
and facilitate resumption of normal social and economic activities.

Section 3. Definition of Terms. For purposes of this Act, the following shall refer to:

(a) Adaptation 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) Capacity a combination of all strengths and resources available within a

community, society or organization that can reduce the level of risk, or effects of a
disaster. Capacity may include infrastructure and physical means, institutions, societal
coping abilities, as well as human knowledge, skills and collective attributes such as
social relationships, leadership and management. Capacity may also be described as
capability.
(c) Civil Society Organizations Or CSOs non-state actors whose aims are neither to
generate profits nor to seek governing power. CSOs unite people to advance shared
goals and interests. They have a presence in public life, expressing the interests and
values of their members or others, and are based on ethical, cultural, scientific, religious
or philanthropic considerations. CSOs include nongovernment organizations (NGOs),
professional associations, foundations, independent research institutes, communitybased organizations (CBOs), faith-based organizations, peoples organizations, social
movements, and labor unions.
(d) Climate Change 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) Community-Based Disaster Risk Reduction and Management or CBDRRM a
process of disaster risk reduction and management in which at risk communities are
actively engaged in the identification, analysis, treatment, monitoring and evaluation of
disaster risks in order to reduce their vulnerabilities and enhance their capacities, and
where the people are at the heart of decision-making and implementation of disaster risk
reduction and management activities.
(f) Complex Emergency a form of human-induced emergency in which the cause of
the emergency as well as the assistance to the afflicted IS complicated by intense level of
political considerations.
(g) Contingency Planning a management process that analyzes specific potential
events or emerging situations that might threaten society or the environment and
establishes arrangements in advance to enable timely, effective and appropriate
responses to such events and situations.

(h) Disaster a serious disruption of the functioning of a community or a society

involving widespread human, material, economic or environmental losses and impacts,
which exceeds the ability of the affected community or society to cope using its own
resources. Disasters are often described as a result of the combination of: the exposure
to a hazard; the conditions of vulnerability that are present; and insufficient capacity or
measures to reduce or cope with the potential negative consequences, Disaster impacts
may include loss of life, injury, disease and other negative effects on human, physical,
mental and social well-being, together with damage to property, destruction of assets,
loss
of
services,
Social
and
economic disruption
and
environmental
degradation.1avvphi1
(i) Disaster Mitigation the lessening or limitation of the adverse impacts of hazards
and related disasters. Mitigation measures encompass engineering techniques and
hazard-resistant construction as well as improved environmental policies and public
awareness.

(l) Disaster Response the provision of emergency services and public assistance
during or immediately after a disaster in order to save lives, reduce health impacts,
ensure public safety and meet the basic subsistence needs of the people affected.
Disaster response is predominantly focused on immediate and short-term needs and is
sometimes called disaster relief.
(m) Disaster Risk the potential disaster losses in lives, health status, livelihood, assets
and services, which could occur to a particular community or a Society over some
specified future time period.
(n) Disaster Risk Reduction the concept and practice of reducing disaster risks
through systematic efforts to analyze and manage the causal factors of disasters,
including through reduced exposures to hazards, lessened vulnerability of people and
property, wise management of land and the environment, and improved preparedness for
adverse events.

(j) Disaster Preparedness the knowledge and capacities developed by governments,

professional response and recovery organizations, communities and individuals to
effectively anticipate, respond to, and recover from, the Impacts of likely, imminent or
current hazard events or conditions. Preparedness action is carried out within the context
of disaster risk reduction and management and aims to build the capacities needed to
efficiently manage all types of emergencies and achieve orderly transitions from
response to sustained recovery. Preparedness is based on a sound analysis of disaster
risk and good linkages with early warning systems, and includes such activities as
contingency planning, stockpiling of equipment and supplies, the development of
arrangements for coordination, evacuation and public information, and associated
training and field exercises. These must be supported by formal institutional, legal and
budgetary capacities.

(o) Disaster Risk Reduction and Management the systematic process of using
administrative directives, organizations, and operational skills and capacities to
implement strategies, policies and improved coping capacities in order to lessen the
adverse impacts of hazards and the possibility of disaster. Prospective disaster risk
reduction and management refers to risk reduction and management activities that
address and seek to avoid the development of new or increased disaster risks, especially
if risk reduction policies are not put m place.

(k) Disaster Prevention the outright avoidance of adverse impacts of hazards and
related disasters. It expresses the concept and intention to completely avoid potential
adverse impacts through action taken in advance such as construction of dams or
embankments that eliminate flood risks, land-use regulations that do not permit any
settlement in high-risk zones, and seismic engineering designs that ensure the survival
and function of a critical building in any likely earthquake.

(q) Early Warning System the set of capacities needed to generate and disseminate
timely and meaningful warning information to enable individuals, communities and
organizations threatened by a hazard to prepare and to act appropriately and in sufficient
time to reduce the possibility of harm or loss. A people-centered early warning system
necessarily comprises four (4) key elements: knowledge of the risks; monitoring, analysis
and forecasting of the hazards; communication or dissemination of alerts and warnings;

(p) Disaster Risk Reduction and Management Information System a specialized

database which contains, among others, information on disasters and their human
material, economic and environmental impact, risk assessment and mapping and
vulnerable groups.

and local capabilities to respond to the warnings received. The expression end-to-end
warning system is also used to emphasize that warning systems need to span all steps
from hazard detection to community response.
(r) Emergency unforeseen or sudden occurrence, especially danger, demanding
immediate action.
(s) Emergency Management the organization and management of resources and
responsibilities for addressing all aspects of emergencies, in particular preparedness,
response and initial recovery steps.
(t) Exposure the degree to which the elements at risk are likely to experience hazard
events of different magnitudes.
(u) Geographic Information System a database which contains, among others, geohazard assessments, information on climate change, and climate risk reduction and
management.
(v) Hazard a dangerous phenomenon, substance, human activity or condition that
may cause loss of life, injury or other health impacts, property damage, loss of livelihood
and services, social and economic disruption, or environmental damage.
(w) Land-Use Planning the process undertaken by public authorities to identify,
evaluate and decide on different options for the use of land, including consideration of
long-term economic, social and environmental objectives and the implications for different
communities and interest groups, and the subsequent formulation and promulgation of
plans that describe the permitted or acceptable uses.
(x) Mitigation structural and non-structural measures undertaken to limit the adverse
impact of natural hazards, environmental degradation, and technological hazards and to
ensure the ability of at-risk communities to address vulnerabilities aimed at minimizing
the impact of disasters. Such measures include, but are not limited to, hazard-resistant
construction and engineering works, the formulation and implementation of plans,
programs, projects and activities, awareness raising, knowledge management, policies

on land-use and resource management, as well as the enforcement of comprehensive

land-use planning, building and safety standards, and legislation.
(y) National Disaster Risk Reduction and Management Framework or NDRRMF
provides for comprehensive, all hazards, multi-sectoral, inter-agency and communitybased approach to disaster risk reduction and management.
(z) National Disaster Risk Reduction and Management Plan or NDRRMP the
document to be formulated and implemented by the Office of Civil Defense (OCD) that
sets out goals and specific objectives for reducing disaster risks together with related
actions to accomplish these objectives.
The NDRRMP shall provide for the identification of hazards, vulnerabilities and risks to
be managed at the national level; disaster risk reduction and management approaches
and strategies to be applied m managing said hazards and risks; agency roles,
responsibilities and lines of authority at all government levels; and vertical and horizontal
coordination of disaster risk reduction and management in the pre-disaster and postdisaster phases. It shall be in conformity with the NDRRMF.
(aa) Post-Disaster Recovery the restoration and improvement where appropriate, of
facilities, livelihood and living conditions. of disaster-affected communities, including
efforts to reduce disaster risk factors, in accordance with the principles of build back
better.
(bb) Preparedness pre-disaster actions and measures being undertaken within the
context of disaster risk reduction and management and are based on sound risk analysis
as well as pre-disaster activities to avert or minimize loss of life and property such as, but
not limited to, community organizing, training, planning, equipping, stockpiling, hazard
mapping, insuring of assets, and public information and education initiatives. This also
includes the development/enhancement of an overall preparedness strategy, policy,
institutional structure, warning and forecasting capabilities, and plans that define
measures geared to help at-risk communities safeguard their lives and assets by being
alert to hazards and taking appropriate action in the face of an Imminent threat or an
actual disaster.

(cc) Private Sector the key actor in the realm of the economy where the central social
concern and process are the mutually beneficial production and distribution of goods and
services to meet the physical needs of human beings. The private sector comprises
private corporations, households and nonprofit institutions serving households.
(dd) Public Sector Employees all persons in the civil service.
(ee) Rehabilitation measures that ensure the ability of affected communities/areas to
restore their normal level of functioning by rebuilding livelihood and damaged
infrastructures and increasing the communities organizational capacity.
(ff) Resilience the ability of a system, community or society exposed to hazards to
resist, absorb, accommodate and recover from the effects of a hazard in a timely and
efficient manner, including through the preservation and restoration of its essential basic
structures and functions.
(gg) Response any concerted effort by two (2) or more agencies, public or private, to
provide assistance or intervention during or immediately after a disaster to meet the life
preservation and basic subsistence needs of those people affected and in the restoration
of essential public activities and facilities.
(hh) Risk the combination of the probability of an event and its negative
consequences.
(ii) Risk Assessment a methodology to determine the nature and extent of risk by
analyzing potential hazards and evaluating existing conditions of vulnerability that
together could potentially harm exposed people, property, services, livelihood and the
environment on which they depend. Risk assessments with associated risk mapping
include: a review of the technical characteristics of hazards such as their location,
intensity, frequency and probability; the analysis of exposure and vulnerability including
the physical, social, health, economic and environmental dimensions; and the evaluation
of the effectiveness of prevailing and alternative coping capacities in respect to likely risk
scenarios.

(jj) Risk Management the systematic approach and practice of managing uncertainty
to minimize potential harm and loss. It comprises risk assessment and analysis, and the
implementation of strategies and specific actions to control, reduce and transfer risks. It is
widely practiced by organizations to minimize risk in investment decisions and to address
operational risks such as those of business disruption, production failure, environmental
damage, social impacts and damage from fire and natural hazards.
(kk) Risk Transfer the process of formally or informally shifting the financial
consequences of particular risks from one party to another whereby a household,
community, enterprise or state authority will obtain resources from the other party after a
disaster occurs, in exchange for ongoing or compensatory social or financial benefits
provided to that other party.
(ll) State of Calamity a condition involving mass casualty and/or major damages to
property, disruption of means of livelihoods, roads and normal way of life of people in the
affected areas as a result of the occurrence of natural or human-induced hazard.
(mm) Sustainable Development development that meets the needs of the present
without compromising the ability of future generations to meet their own needs. It
contains within it two (2) key concepts: (1) the concept of needs, in particular, the
essential needs of the worlds poor, to which overriding priority should be given; and (2)
the idea of limitations imposed by the state of technology and social organizations on the
environments ability to meet present and future needs. It is the harmonious integration of
a sound and viable economy, responsible governance, social cohesion and harmony, and
ecological integrity to ensure that human development now and through future
generations is a life-enhancing process.
(nn) Vulnerability the characteristics and circumstances of a community, system or
asset that make it susceptible to the damaging effects of a hazard. Vulnerability may
arise from various physical, social, economic, and environmental factors such as poor
design and construction of buildings, inadequate protection of assets, lack of public
information and awareness, limited official recognition of risks and preparedness
measures, and disregard for wise environmental management.

(oo) Vulnerable and Marginalized Groups those that face higher exposure to disaster
risk and poverty including, but not limited to, women, children, elderly, differently-abled
people, and ethnic minorities.

(a) Secretary of the Department of Health (DOH);

(b) Secretary of the Department of Environment and Natural Resources (DENR);
(c) Secretary of the Department of Agriculture (DA);

Section 4. Scope. This Act provides for the development of policies and plans and the
implementation of actions and measures pertaining to all aspects of disaster risk reduction
and management, including good governance, risk assessment and early warning,
knowledge building and awareness raising, reducing underlying risk factors, and
preparedness for effective response and early recovery.

(d) Secretary of the Department of Education (DepED);

(e) Secretary of the Department of Energy (DOE);
(f) Secretary of the Department of Finance (DOF);
(g) Secretary of the Department of Trade and Industry (DT!);

Section 5. National Disaster Risk Reduction and Management Council. The present
National Disaster Coordinating Council or NDCC shall henceforth be known as the National
Disaster Risk Reduction and Management Council, hereinafter referred to as the NDRRMC
or the National Council.

(h) Secretary of the Department of Transportation and Communications (DOTC);

(i) Secretary of the Department of Budget and Management (DBM);
(j) Secretary of the Department of Public Works and Highways (DPWH);

The National Council shall be headed by the Secretary of the Department of National
Defense (DND) as Chairperson with the Secretary of the Department of the Interior and Local
Government (DILG) as Vice Chairperson for Disaster Preparedness, the Secretary of the
Department of Social Welfare and Development (DSWD) as Vice Chairperson for Disaster
Response, the Secretary of the Department of Science and Technology (DOST) as Vice
Chairperson for Disaster Prevention and Mitigation, and the Director-General of the National
Economic and Development Authority (NEDA) as Vice Chairperson for Disaster Rehabilitation
and Recovery.

(k) Secretary of the Department of Foreign Affairs (DFA);

(l) Secretary of the Department of Justice (DOJ);
(m) Secretary of the Department of Labor and Employment (DOLE);
(n) Secretary of the Department of Tourism (DOT);
(o) The Executive Secretary;
(p) Secretary of the Office of the Presidential Adviser on the Peace Process (OPAPP);

The National Councils members shall be the following:

(q) Chairman, Commission on Higher Education (CHED);

(r) Chief of Staff, Armed Forces of the Philippines (AFP);

(ii) One (1) representative from the private sector; and

(s) Chief, Philippine National Police (PNP);

(jj) Administrator of the OCD.

(t) The Press Secretary;

(u) Secretary General of the Philippine National Red Cross (PNRC);
(v) Commissioner of the National Anti-Poverty Commission-Victims of Disasters and
Calamities Sector (NAPCVDC);

The representatives from the CSOs and the private sector shall be selected from among their
respective ranks based on the criteria and mechanisms to be set for this purpose by the
National Council.

(w) Chairperson, National Commission on the Role of Filipino Women;

(x) Chairperson, Housing and Urban Development Coordinating Council (HUDCC);

Section 6. Powers and Functions of the NDRRMC. The National Council, being
empowered with policy-making, coordination, integration, supervision, monitoring and
evaluation functions, shall have the following responsibilities:

(y) Executive Director of the Climate Change Office of the Climate Change Commission;
(z) President, Government Service Insurance System (GSIS);
(aa) President, Social Security System (SSS);
(bb) President, Philippine Health Insurance Corporation (PhilHealth);
(cc) President of the Union of Local Authorities of the Philippines (ULAP);
(dd) President of the League of Provinces of the Philippines (LPP);
(ee) President of the League of Cities of the Philippines (LCP);
(ff) President of the League of Municipalities of the Philippines (LMP);
(gg) President of the Liga ng Mga Barangay (LMB);
(hh) Four (4) representatives from the CSOs;

(a) Develop a NDRRMF which shall provide for a comprehensive, all-hazards, multisectoral, inter-agency and community-based approach to disaster risk reduction and
management. The Framework shall serve as the principal guide to disaster risk reduction
and management efforts in the country and shall be reviewed on a five(5)-year interval, or
as may be deemed necessary, in order to ensure its relevance to the times;
(b) Ensure that the NDRRMP is consistent with the NDRRMF;
(c) Advise the President on the status of disaster preparedness, prevention, mitigation,
response and rehabilitation operations being undertaken by the government, CSOs,
private sector, and volunteers; recommend to the President the declaration of a state of
calamity in areas extensively damaged; and submit proposals to restore normalcy in the
affected areas, to include calamity fund allocation;
(d) Ensure a multi-stakeholder participation in the development, updating, and sharing of
a Disaster Risk Reduction and Management Information System and Geographic

Information System-based national risk map as policy, planning and decision-making

tools;

(m) Formulate, harmonize, and translate into policies a national agenda for research and
technology development on disaster risk reduction and management;

(e) Establish a national early warning and emergency alert system to provide accurate
and timely advice to national or local emergency response organizations and to the
general public through diverse mass media to include digital and analog broadcast,
cable, satellite television and radio, wireless communications, and landline
communications;

(n) In coordination with the Climate Change Commission, formulate and implement a
framework for climate change adaptation and disaster risk reduction and management
from which all policies, programs, and projects shall be based;

(f) Develop appropriate risk transfer mechanisms that shall guarantee social and
economic protection and increase resiliency in the face of disaster;
(g) Monitor the development and enforcement by agencies and organizations of the
various laws, guidelines, codes or technical standards required by this Act;
(h) Manage and mobilize resources for disaster risk reduction and management including
the National Disaster Risk Reduction and Management Fund;
(i) Monitor and provide the necessary guidelines and procedures. on the Local Disaster
Risk Reduction and Management Fund (LDRRMF) releases as well as utilization,
accounting and auditing thereof;
(j) Develop assessment tools on the existing and potential hazards and risks brought
about by climate change to vulnerable areas and ecosystems in coordination with the
Climate Change Commission;
(k) Develop vertical and horizontal coordination mechanisms for a more coherent
implementation of disaster risk reduction and management policies and programs by
sectoral agencies and LGUs;
(l) Formulate a national institutional capability building program for disaster risk reduction
and management to address the specific weaknesses of various government agencies
and LGUs, based on the results of a biennial baseline assessment and studies;

(o) Constitute a technical management group composed of representatives of the

abovementioned departments, offices, and organizations, that shall coordinate and meet
as often as necessary to effectively manage and sustain national efforts on disaster risk
reduction and management;
(p) Task the OCD to conduct periodic assessment and performance monitoring of the
member-agencies of the NDRRMC, and the Regional Disaster Risk Reduction and
Management Councils (RDRRMCs), as defined in the NDRRMP; and
(q) Coordinate or oversee the Implementation of the countrys obligations with disaster
management treaties to which it IS a party and see to It that the countrys disaster
management treaty obligations be incorporated in its disaster risk reduction and
management frameworks, policies, plans, programs and projects.

Section 7. Authority of the NDRRMC Chairperson. The Chairperson of the NDRRMC may
call upon other instrumentalities or entities of the government and nongovernment and civic
organizations for assistance In terms of the use of their facilities and resources for the
protection and preservation of life and properties in the whole range of disaster risk reduction
and management. This authority includes the power to call on the reserve force as defined in
Republic Act No. 7077 to assist in relief and rescue during disasters or calamities.

Section 8. The Office of Civil Defense. The Office of Civil Defense (OCD) shall have the
primary mission of administering a comprehensive national civil defense and disaster risk
reduction and management program by providing leadership in the continuous development

of strategic and systematic approaches as well as measures to reduce the vulnerabilities and
risks to hazards and manage the consequences of disasters.
The Administrator of the OCD shall also serve as Executive Director of the National Council
and, as such, shall have the same duties and privileges of a department undersecretary. All
appointees shall be universally acknowledged experts in the field of disaster preparedness
and management and of proven honesty and integrity. The National Council shall utilize the
services and facilities of the OCD as the secretariat of the National Council.

Section 9. Powers and Functions of the OCD. The OCD shall have the following powers
and functions:

(a) Advise the National Council on matters relating to disaster risk reduction and
management consistent with the policies and scope as defined in this Act;
(b) Formulate and implement the NDRRMP and ensure that the physical framework,
social, economic and environmental plans of communities, cities, municipalities and
provinces are consistent with such plan. The National Council shall approve the
NDRRMP;
(c) Identify, assess and prioritize hazards and risks in consultation with key stakeholders;
(d) Develop and ensure the implementation of national standards in carrying out disaster
risk reduction programs including preparedness, mitigation, prevention, response and
rehabilitation works, from data collection and analysis, planning, implementation,
monitoring and evaluation;
(e) Review and evaluate the Local Disaster risk Reduction and Management Plans
(LDRRMPs) to facilitate the integration of disaster risk reduction measures into the local
Comprehensive Development Plan (CDP) and Comprehensive Land-Use Plan (CL UP);

(f) Ensure that the LG U s, through the Local Disaster Risk Reduction and Management
Offices (LDRRMOs) are properly informed and adhere to the national standards and
programs;
(g) Formulate standard operating procedures for the deployment of rapid assessment
teams, information sharing among different government agencies, and coordination
before and after disasters at all levels;
(h) Establish standard operating procedures on the communication system among
provincial, city, municipal, and barangay disaster risk reduction and management
councils, for purposes of warning and alerting them and for gathering information on
disaster areas before, during and after disasters;
(i) Establish Disaster Risk Reduction and Management Training Institutes in such suitable
location as may be deemed appropriate to train public and private individuals, both local
and national, in such subject as disaster risk reduction and management among others.
The Institute shall consolidate and prepare training materials and publications of disaster
risk reduction and management books and manuals to assist disaster risk reduction and
management workers in the planning and implementation of this program and projects.
The Institute shall conduct research programs to upgrade know ledge and skills and
document best practices on disaster risk reduction and management. The Institute is also
mandated to conduct periodic awareness and education programs to accommodate new
elective officials and members of the LDRRMCs;
(j) Ensure that all disaster risk reduction programs, projects and activities requiring
regional and international support shall be in accordance with duly established national
policies and aligned with international agreements;
(k) Ensure that government agencies and LGUs give toppriority and take adequate and
appropriate measures in disaster risk reduction and management;
(l) Create an enabling environment for substantial and sustainable participation of CSOs,
private groups, volunteers and communities, and recognize their contributions in the
governments disaster risk reduction efforts;

(m) Conduct early recovery and post-disaster needs assessment institutionalizing gender
analysis as part of it;
(n) Establish an operating facility to be known as the National Disaster Risk Reduction
and Management Operations Center (NDRRMOC) that shall be operated and staffed on
a twenty-four (24) hour basis;
(o) Prepare the criteria and procedure for the enlistment of accredited community disaster
volunteers (ACDVs). It shall include a manual of operations for the volunteers which shall
be developed by the OCD in consultation with various stakeholders;
(p) Provide advice and technical assistance and assist in mobilizing necessary resources
to increase the overall capacity of LGUs, specifically the low income and in high-risk
areas;

Regional Directors of the DSWD, the DILG, the DOST, and the NEDA. In the case of the
Autonomous Region in Muslim Mindanao (ARMM), the Regional Governor shall be the
RDRRMC Chairperson. The existing regional offices of the OCD shall serve as secretariat of
the RDRRMCs. The RDRRMCs shall be composed of the executives of regional offices and
field stations at the regional level of the government agencies.

Section 11. Organization at the Local Government Level. The existing Provincial, City, and
Municipal Disaster Coordinating Councils shall henceforth be known as the Provincial, City,
and Municipal Disaster Risk Reduction and Management Councils. The Barangay Disaster
Coordinating Councils shall cease to exist and its powers and functions shall henceforth be
assumed by the existing Barangay Development Councils (BDCs) which shall serve as the
LDRRMCs in every barangay.

(q) Create the necessary offices to perform its mandate as provided under this Act; and
(r) Perform such other functions as may be necessary for effective operations and
implementation of this Act.

(a) Composition: The LDRRMC shall be composed of, but not limited to, the following:

(1) The Local Chief Executives, Chairperson;

Section 10. Disaster Risk Reduction and Management Organization at the Regional Level.
The current Regional Disaster Coordinating Councils shall henceforth be known as the
Regional Disaster Risk Reduction and Management Councils (RDRRMCs) which shall
coordinate, integrate, supervise, and evaluate the activities of the LDRRMCs. The RDRRMC
shall be responsible in ensuring disaster sensitive regional development plans, and in case of
emergencies shall convene the different regional line agencies and concerned institutions
and authorities.

(2) The Local Planning and Development Officer, member;

(3) The Head of the LDRRMO, member;
(4) The Head of the Local Social Welfare and Development Office, member;
(5) The Head of the Local Health Office, member;

The RDRRMCs shall establish an operating facility to be known as the Regional Disaster
Risk Reduction and Management Operations Center (RDRRMOC) whenever necessary.
The civil defense officers of the OCD who are or may be designated as Regional Directors of
the OCD shall serve as chairpersons of the RDRRMCs. Its Vice Chairpersons shall be the

(6) The Head of the Local Agriculture Office, member;

(7) The Head of the Gender and Development Office, member;

(8) The Head of the Local Engineering Office, member;

(9) The Head of the Local Veterinary Office, member;
(10) The Head of the Local Budget Office, member;

(2) Ensure the integration of disaster risk reduction and climate change adaptation into
local development plans, programs and budgets as a strategy in sustainable
development and poverty reduction;
(3) Recommend the implementation of forced or preemptive evacuation of local
residents, if necessary; and

(11) The Division Head/Superintendent of Schools of the DepED, member;

(4) Convene the local council once every three (3) months or as necessary.
(12) The highest-ranking officer of the Armed Forces of the Philippines (AFP) assigned in
the area, member;
(13) The Provincial Director/City/Municipal Chief of the Philippine National Police (PNP),
member;
(14) The Provincial Director/City/ Municipal Fire Marshall of the Bureau of Fire Protection
(BFP), member;
(15) The President of the Association of Barangay Captains (ABC), member;
(16) The Philippine National Red Cross (PNRC), member;

Section 12. Local Disaster Risk Reduction and Management Office (LDRRMO).

(a) There shall be established an LDRRMO in every province, city and municipality, and a
Barangay Disaster Risk Reduction and Management Committee (BDRRMC) in every
barangay which shall be responsible for setting the direction, development,
implementation and coordination of disaster risk management programs within their
territorial jurisdiction.

(17) Four (4) accredited CSOs, members; and

(18) One (1) private sector representative, member.

(b) The LDRRMCs shall have the following functions:

(1) Approve, monitor and evaluate the implementation of the LDRRMPs and regularly
review and test the plan consistent with other national and local planning programs;

(b) The LDRRMO shall be under the office of the governor, city or municipal mayor, and
the punong barangay in case of the BDRRMC. The LDRRMOs shall be initially organized
and composed of a DRRMO to be assisted by three (3) staff responsible for: (1)
administration and training; (2) research and planning; and (3) operations and warning.
The LDRRMOs and the BDRRMCs shall organize, train and directly supervise the local
emergency response teams and the ACDVs.

(c) The provincial, city and municipal DRRMOs or BDRRMCs shall perform the following
functions with impartiality given the emerging challenges brought by disasters of our
times:

resources for the protection and preservation of life and properties during emergencies in
accordance with existing policies and procedures;
(9) Identify, assess and manage the hazards vulnerabilities and risks that may occur in
their locality;

(1) Design, program, and coordinate disaster risk reduction and management activities
consistent with the National Councils standards and guidelines;

(10) Disseminate information and raise public awareness about those hazards.
vulnerabilities and risks, their nature, effects, early warning signs and counter-measures;

(2) Facilitate and support risk assessments and contingency planning activities at the
local level;

(11) Identify and implement cost-effective risk reduction measures/strategies;

(3) Consolidate local disaster risk information which includes natural hazards,
vulnerabilities, and climate change risks, and maintain a local risk map;
(4) Organize and conduct training, orientation, and knowledge management activities on
disaster risk reduction and management at the local level;
(5) Operate a multi-hazard early warning system, linked to disaster risk reduction to
provide accurate and timely advice to national or local emergency response
organizations and to the general public, through diverse mass media, particularly radio,
landline communications, and technologies for communication within rural communities;
(6) Formulate and implement a comprehensive and integrated LDRRMP in accordance
with the national, regional and provincial framework, and policies on disaster risk
reduction in close coordination with the local development councils (LDCs);
(7) Prepare and submit to the local sanggunian through the LDRRMC and the LDC the
annual LDRRMO Plan and budget, the proposed programming of the LDRRMF, other
dedicated disaster risk reduction and management resources, and other regular funding
source/s and budgetary support of the LDRRMO/BDRRMC;
(8) Conduct continuous disaster monitoring and mobilize instrumentalities and entities of
the LGUs, CSOs, private groups and organized volunteers, to utilize their facilities and

(12) Maintain a database of human resource, equipment, directories, and location of

critical infrastructures and their capacities such as hospitals and evacuation centers;
(13) Develop, strengthen and operationalize mechanisms for partnership or networking
with the private sector, CSOs, and volunteer groups;
(14) Take all necessary steps on a continuing basis to maintain, provide, or arrange the
provision of, or to otherwise make available, suitably-trained and competent personnel for
effective civil defense and disaster risk reduction and management in its area;
(15) Organize, train, equip and supervise the local emergency response teams and the
ACDV s, ensuring that humanitarian aid workers are equipped with basic skills to assist
mothers to breastfeed;
(16) Respond to and manage the adverse effects of emergencies and carry out recovery
activities in the affected area, ensuring that there is an efficient mechanism for immediate
delivery of food, shelter and medical supplies for women and children, endeavor to create
a special place where internally-displaced mothers can find help with breastfeeding, feed
and care for their babies and give support to each other;
(17) Within its area, promote and raise public awareness of and compliance with this Act
and legislative provisions relevant to the purpose of this Act;

(18) Serve as the secretariat and executive arm of the LDRRMC;

(19) Coordinate other disaster risk reduction and management activities;
(20) Establish linkage/network with other LGUs for disaster risk reduction and emergency
response purposes;

private sector and LGUs may mobilize individuals or organized volunteers to augment their
respective personnel complement and logistical requirements in the delivery of disaster risk
reduction programs and activities. The agencies, CSOs, private sector, and LGUs concerned
shall take full responsibility for the enhancement, welfare and protection of volunteers, and
shall submit the list of volunteers to the OCD, through the LDRRMOs, for accreditation and
inclusion in the database of community disaster volunteers.

(21) Recommend through the LDRRMC the enactment of local ordinances consistent
with the requirements of this Act;
(22) Implement policies, approved plans and programs of the LDRRMC consistent with
the policies and guidelines laid down in this Act;
(23) Establish a Provincial/City/Municipal/Barangay Disaster Risk Reduction and
Management Operations Center;
(24) Prepare and submit, through the LDRRMC and the LDC, the report on the utilization
of the LDRRMF and other dedicated disaster risk reduction and management resources
to the local Commission on Audit (COA), copy furnished the regional director of the OCD
and the Local Government Operations Officer of the DILG; and
(25) Act on other matters that may be authorized by the LDRRMC.

(d) The BDRRMC shall be a regular committee of the existing BDC and shall be subject
thereto. The punong barangay shall facilitate and ensure the participation of at least two
(2) CSO representatives from existing and active community-based peoples
organizations representing the most vulnerable and marginalized groups in the barangay.

Section 13. Accreditation, Mobilization, and Protection of Disaster Volunteers and National
Service Reserve Corps, CSOs and the Private Sector. The government agencies, CSOs,

A national roster of ACDVs, National Service Reserve Corps, CSOs and the private sector
shall be maintained by the OCD through the LDRRMOs. Accreditation shall be done at the
municipal or city level.
Mobilization of volunteers shall be in accordance with the guidelines to be formulated by the
NDRRMC consistent with the provisions of this Act. Any volunteer who incurs death or injury
while engaged in any of the activities defined under this Act shall be entitled to compensatory
benefits and individual personnel accident insurance as may be defined under the guidelines.

Section 14. Integration of Disaster Risk Reduction Education into the School Curricula and
Sangguniang Kabataan (SK) Program and Mandatory Training for the Public Sector
Employees. The DepED, the CHED, the Technical Education and Skills Development
Authority (TESDA), in coordination with the OCD, the National Youth Commission (NYC), the
DOST, the DENR, the DILG-BFP, the DOH, the DSWD and other relevant agencies, shall
integrate disaster risk reduction and management education in the school curricula of
secondary and tertiary level of education, including the National Service Training Program
(NSTP), whether private or public, including formal and nonformal, technical-vocational,
indigenous learning, and out-of-school youth courses and programs.

The NDRRMC, the RDRRMCs, the LDRRMCs, the LDRRMOs, the BDRRMCs and the SK
councils shall encourage community, specifically the youth, participation in disaster risk
reduction and management activities, such as organizing quick response groups, particularly

in identified disaster-prone areas, as well as the inclusion of disaster risk reduction and
management programs as part of the SK programs and projects.

Section 16. Declaration of State of Calamity. The National Council shall recommend to the
President of the Philippines the declaration of a cluster of barangays, municipalities, cities,
provinces, and regions under a state of calamity, and the lifting thereof, based on the criteria
set by the National Council. The Presidents declaration may warrant international
humanitarian assistance as deemed necessary.

The public sector employees shall be trained in emergency response and preparedness. The
training is mandatory for such employees to comply with the provisions of this Act.

Section 15. Coordination During Emergencies. The LDRRMCs shall take the lead in
preparing for, responding to, and recovering from the effects of any disaster based on the
following criteria:

(a) The BDC, if a barangay is affected;

The declaration and lifting of the state of calamity may also be issued by the local
sanggunian, upon the recommendation of the LDRRMC, based on the results of the damage
assessment and needs analysis.

Section 17. Remedial Measures. The declaration of a state of calamity shall make
mandatory the Immediate undertaking of the following remedial measures by the memberagencies concerned as defined in this Act:

(b) The city/municipal DRRMCs, If two (2) or more barangays are affected;
(c) The provincial DRRMC, if two (2) or more cities/municipalities are affected;
(d) The regional DRRMC, if two (2) or more provinces are affected; and
(e) The NDRRMC, if two (2) or more regions are affected.

The NDRRMC and intermediary LDRRMCs shall always act as support to LGUs which have
the primary responsibility as first disaster responders. Private sector and civil society groups
shall work in accordance with the coordination mechanism and policies set by the NDRRMC
and concerned LDRRMCs.

(a) Imposition of price ceiling on basic necessities and prime commodities by the
President upon the recommendation of the implementing agency as provided for under
Republic Act No. 7581, otherwise known as the Price Act, or the National Price
Coordinating Council;
(b) Monitoring, prevention and control by the Local Price Coordination Council of
overpricing/profiteering and hoarding of prime commodities, medicines and petroleum
products;
(c) Programming/reprogramming of funds for the repair and safety upgrading of public
infrastructures and facilities; and
(d) Granting of no-interest loans by government financing or lending institutions to the
most affected section of the population through their cooperatives or peoples
organizations.

(e) Selling of relief goods, equipment or other aid commodities which are intended for
distribution to disaster victims;
Section 18. Mechanism for International Humanitarian Assistance.
(a) The importation and donation of food, clothing, medicine and equipment for relief and
recovery and other disaster management and recovery-related supplies is hereby
authorized in accordance with Section 105 of the Tariff and Customs Code of the
Philippines, as amended, and the prevailing provisions of the General Appropriations Act
covering national internal revenue taxes and import duties of national and local
government agencies; and
(b) Importations and donations under this section shall be considered as importation by
and/or donation to the NDRRMC, subject to the approval of the Office of the President.

Section 19. Prohibited Acts. Any person, group or corporation who commits any of the
following prohibited acts shall be held liable and be subjected to the penalties as prescribed
in Section 20 of this Act:

(a) Dereliction of duties which leads to destruction, loss of lives, critical damage of
facilities and misuse of funds;
(b) Preventing the entry and distribution of relief goods in disaster-stricken areas,
including appropriate technology, tools, equipment, accessories, disaster teams/experts;
(c) Buying, for consumption or resale, from disaster relief agencies any relief goods,
equipment or other and commodities which are intended for distribution to disaster
affected communities;
(d) Buying, for consumption or resale, from the recipient disaster affected persons any
relief goods, equipment or other aid commodities received by them;

(f) Forcibly seizing relief goods, equipment or other aid commodities intended for or
consigned to a specific group of victims or relief agency;
(g) Diverting or misdelivery of relief goods, equipment or other aid commodities to
persons other than the rightful recipient or consignee;
(h) Accepting, possessing, using or disposing relief goods, equipment or other aid
commodities not intended for nor consigned to him/her;
(i) Misrepresenting the source of relief goods, equipment or other aid commodities by:
(1) Either covering, replacing or defacing the labels of the containers to make it appear
that the goods, equipment or other aid commodities came from another agency or
persons;
(2) Repacking the! goods, equipment or other aid commodities into containers with
different markings to make it appear that the goods came from another agency or
persons or was released upon the instance of a particular agency or persons;
(3) Making false verbal claim that the goods, equipment or other and commodity m its
untampered original containers actually came from another agency or persons or was
released upon the instance of a particular agency or persons;
(j) Substituting or replacing relief goods, equipment or other aid commodities with the
same items or inferior/cheaper quality;
(k) Illegal solicitations by persons or organizations representing others as defined in the
standards and guidelines set by the NDRRMC;

(l) Deliberate use of false at inflated data in support of the request for funding, relief
goods, equipment or other aid commodities for emergency assistance or livelihood
projects; and
(m) Tampering with or stealing hazard monitoring and disaster preparedness equipment
and paraphernalia.

Section 20. Penal Clause. Any individual, corporation, partnership, association, or other
juridical entity that commits any of the prohibited acts provided for in Section 19 of this Act
shall be prosecuted and upon conviction shall suffer a fine of not less than Fifty thousand
pesos (Php50,000.00) or any amount not to exceed Five hundred thousand pesos
(php500,000.00) or imprisonment of not less than six (6) years and one (1) day or more than
twelve (12) years, or both, at the discretion of the court, including perpetual disqualification
from public office if the offender IS a public officer, and confiscation or forfeiture in favor of the
government of the objects and the instrumentalities used in committing any of herein
prohibited acts.

If the offender is a corporation, partnership or association, or other juridical entity, the penalty
shall be imposed upon the officer or officers of the corporation, partnership, association or
entity responsible for the violation without prejudice to the cancellation or revocation of these
entities license or accreditation issued to them by any licensing or accredited body of the
government. If such offender is an alien, he or she shall, in addition to the penalties
prescribed in this Act, be deported without further proceedings after service of the sentence.

However, the prosecution for offenses set forth in Section 19 of this Act shall be without
prejudice to any liability for violation of Republic Act No. 3185, as amended, otherwise known
as the Revised Penal Code, and other civil liabilities.

Section 21. Local Disaster Risk Reduction and Management Fund (LDRRMF). The
present Local Calamity Fund shall henceforth be known as the Local Disaster Risk Reduction
and Management Fund (LDRRMF). Not less than five percent (5%) of the estimated revenue
from regular sources shall be set aside as the LDRRMF to support disaster risk management
activities such as, but not limited to, pre-disaster preparedness programs including training,
purchasing life-saving rescue equipment, supplies and medicines, for post-disaster activities,
and for the payment of premiums on calamity insurance. The LDRRMC shall monitor and
evaluate the use and disbursement of the LDRRMF based on the. LDRRMP as incorporated
in the local development plans and annual work and financial plan. Upon the
recommendation of the LDRRMO and approval of the sanggunian concerned, the LDRRMC
may transfer the said fund to support disaster risk reduction work of other LDRRMCs which
are declared under state of calamity.

Of the amount appropriated for LDRRMF, thirty percent (30%) shall be allocated as Quick
Response Fund (QRF) or stand-by fund for relief and recovery programs in order that
situation and living conditions of people In communities or areas stricken by disasters,
calamities, epidemics, or complex emergencies, may be normalized as quickly as possible.

Unexpended LDRRMF shall accrue to a special trust fund solely for the purpose of supporting
disaster risk reduction and management activities of the LDRRMCs within the next five (5)
years. Any such amount still not fully utilized after five (5) years shall revert back to the
general fund and will be available for other social services to be identified by the local
sanggunian.

Section 22. National Disaster Risk Reduction and Management Fund. (a) The present
Calamity Fund appropriated under the annual General Appropriations Act shall henceforth be
known as the National Disaster Risk Reduction and Management Fund (NDRRM Fund) and it
shall be used for disaster risk reduction or mitigation, prevention and preparedness activities
such as but not limited to training of personnel, procurement of equipment, and capital

expenditures. It can also be utilized for relief, recovery, reconstruction and other work or
services in connection with natural or human induced calamities which may occur during the
budget year or those that occurred in the past two (2) years from the budget year.
(b) The specific amount of the NDRRM Fund and the appropriate recipient agencies
and/or LGUs shall be determined upon approval of the President of the Philippines in
accordance with the favorable recommendation of the NDRRMC.
(c) Of the amount appropriated for the NDRRM Fund, thirty percent (30%) shall be
allocated as Quick Response Fund (QRF) or stand-by fund for relief and recovery
programs in order that situation and living conditions of people in communities or areas
stricken by disasters, calamities, epidemics, or complex emergencies, may be normalized
as quickly as possible.
(d) All departments/agencies and LGUs that are allocated with DRRM fund shall submit
to the NDRRMC their monthly statements on the utilization of DRRM funds and make an
accounting thereof in accordance with existing accounting and auditing rules.
(e) All departments, bureaus, offices and agencies of the government are hereby
authorized to use a portion of their appropriations to implement projects designed to
address DRRM activities in accordance with the guidelines to be issued by the NDRRMC
in coordination with the DBM.

Section 23. Funding of the OCD. As lead agency to carry out the provisions of this Act, the
OCD shall be allocated a budget of One billion pesos (Php1,000,000,000.00) revolving fund
starting from the effectivity of this Act.

Section 24. Annual Report. The National Council, through the OCD, shall submit to the
Office of the President, the Senate and the House of Representatives, within the first quarter
of the succeeding year, an annual report relating to the progress of the implementation of the
NDRRMP.

Section 25. Implementing Rules and Regulations. The NDRRMC. through its Chairperson.
shall issue the necessary rules and regulations for the effective implementation of this Act
within ninety (90) days after approval of this Act. The OCD. in consultation with key
stakeholders. shall take the lead in the preparation of the implementing rules and regulations
with the active involvement of the technical management group of the NDRRMC.

Section 26. Congressional Oversight Committee. There is hereby created a Congressional

Oversight Committee to monitor and oversee the implementation of the provisions of this Act.
The Committee shall be composed of six (6) members from the Senate and six (6) members
from the House of Representatives with the Chairpersons of the Committees on National
Defense and Security of both the Senate and the House of Representatives as joint
Chairpersons of this Committee. The five (5) other members from each Chamber are to be
designated by the Senate President and the Speaker of the House of Representatives.
respectively. The minority shall be entitled to pro rata represent3tion but shall have at least
two (2) representatives from each Chamber.

Section 27. Sunset Review. Within five (5) years after the effectivity of this Act, or as the
need arises, the Congressional Oversight Committee shall conduct a sunset review. For
purposes of this Act, the term sunset review shall mean a systematic evaluation by the
Congressional Oversight Committee of the accomplishments and impact of this Act, as well
as the performance and organizational structure of its implementing agencies, for purposes of
determining remedial legislation.

Section 28. Repealing Clause. Presidential Decree No. 1566 and all other laws, decrees,
executive orders, proclamations and other executive issuances which are inconsistent with or
contrary to the provisions of this Act are hereby amended or repealed accordingly.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:
Section 29. Separability Clause. If any provision of this Act shall be held unconstitutional or
invalid, the other provisions not otherwise affected shall remain m full force and effect.
SECTION 1. Section 2 of Republic Act No. 9729, otherwise known as the Climate Change
Act of 2009, is hereby amended to read as follows:
Section 30. Effectivity Clause. This Act shall take effect fifteen (15) days following its
complete publication in the Official Gazette or in two (2) national newspapers of general
circulation.

Approved: May 27, 2010

RA 10174
[REPUBLIC ACT NO. 10174]

AN ACT ESTABLISHING THE PEOPLES SURVIVAL FUND TO PROVIDE LONGTERM FINANCE STREAMS TO ENABLE THE GOVERNMENT TO EFFECTIVELY
ADDRESS THE PROBLEM OF CLIMATE CHANGE, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 9729, OTHERWISE KNOWN AS THE CLIMATE CHANGE ACT
OF 2009, AND FOR OTHER PURPOSES

SEC. 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
(UNFCCC), 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. 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 and global warming such as increasing temperatures, rising seas, changing
landscapes, increasing frequency and/or severity of droughts, fire, 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 potential
benefits of climate change. It shall also be the policy of the State to incorporate a gendersensitive, 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 contest of sustainable development.

SEC. 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 barn 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.

Further recognizing that climate change and disaster risk reduction and management are
closely interrelated and effective disaster risk reduction and management will enhance
adaptive capacity to climate change, climate variability and extreme climate events, the State
shall integrate disaster risk reduction into climate change programs and initiatives.

Cognizant of the need to ensure that national and sub-national 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.

SEC. 2. Section 3 of Republic Act No. 9729 is hereby amended to read as follows:

(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 Finance refers to resources that have been allocated or may be utilized
towards the climate change adaptation and mitigation requirements of the country and its
vulnerable communities.
(f) 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.
(g) Climate Risk refers to the product of climate and related hazards working over the
vulnerability of human and natural ecosystems.
(h) 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.

(i) Disaster Risk Reduction and Management (DRRM) refers to the systematic process
of using administrative directives, organizations, and operational skills and capacities to
implement strategies, policies and improved coping capacities in order to lessen the
adverse impacts of hazards and the possibility of disaster. Prospective Disaster Risk
Reduction and Management refers to risk reduction and management activities that
address and seek to avoid the development of new or increased disaster risks, especially
if risk reduction policies are not put in place.

(p) 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).

(j) Gender mainstreaming refers to the strategy for making the concerns and
experiences of women as well as those of men an integral dimension of the design,
implementation, monitoring, and evaluation of policies and programs in all political,
economic, environmental or ecological 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.

(r) 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 extreme
climate events. 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.

(a) 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.

(k) Global Warming refers to the increase in the average temperature of the Earths
near-surface air and oceans that is associated with the increased concentration of
greenhouse gases in the atmosphere.

SEC. 3. Section 4 of Republic Act No. 9729 is hereby amended to read as follows:

(I) Greenhouse effect refers to the process by which the absorption of infrared radiation
by the atmosphere warms the Earth.

SEC. 4. Creation of the Climate Change Commission. There is hereby established a

Climate Change Commission, hereinafter referred to as the Commission.

(m) Greenhouses 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.
(n) Mainstreaming refers to the integration of policies and measures that address climate
change into development planning and sectoral decision-making.
(o) Mitigation in the context of climate change, refers to human intervention to reduce
anthropogenic emissions sources and enhance removals by sinks of all GHG, includingozone-depleting substances and their substitutes.

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 lead policy-making body of the government, which shall be
tasked to coordinate, monitor and evaluate the programs and action plans of the government

in order to ensure the mainstreaming of climate change into the national, sectoral and local
development plans and programs pursuant to the provisions of this Act.

(g) Secretary of the Department of Foreign Affairs;

(h) Secretary of the Department of Health;
(i) Secretary of the Department of Interior and Local Government;

The Commission shall be organized within sixty (80) days from the effectivity of this Act.
(j) Secretary of the Department of National Defense, in his capacity as Chair of the
National Disaster Risk Reduction and Management Council;
SEC. 4. Section 5 of Republic Act No. 9729 is hereby amended to read as follows.

(k) Secretary of the Department of Public Works and Highways;

(l) Secretary of the Department of Science and Technology;

SEC. 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 be appointed as Vice
Chairperson of the Commission.

(m) Secretary of the Department of Social Welfare and Development;

(n) Secretary of the Department of Trade and Industry;
(o) Secretary of the Department of Transportation and Communications;

The Commission shall have an advisory board composed of the following:

(p) Director-General of the National Economic and Development Authority, in his capacity
as Socioeconomic Planning Secretary and Chair of the Philippine Council for Sustainable
Development (PCSD);
(a) Secretary of the Department of Agriculture;
(q) Director-General of the National Security Council;
(b) Secretary of the Department of Budget and Management;
(r) Chairperson of the Philippine Commission on Women;
(c) Secretary of the Department of Energy;
(s) Chairperson of the National Youth Commission;
(d) Secretary of the Department of Environment and Natural Resources;
(t) President of the Sangguniang Kabataan National Federation;
(e) Secretary of the Department of Education;
(u) President of the League of Provinces;
(f) Secretary of the Department of Finance;
(v) President of the League of Cities;

(w) President of the League of Municipalities;

SEC. 6. Meetings of the Commission. The Commission shall convene every first or last.
Monday of every third month, or as often as it may deem necessary.

(x) President of the Liga ng mga Barangay;

(y) Representative from the academe;
(aa) Representative from the business sector; and
(aa) Representative from nongovernmental organizations.

In the event that the Chairperson cannot preside the meeting, the Vice Chairperson shall
undertake such function; Provided, however, That a resolution or decision shall be approved
by the majority of the three (3) Commissioners: Provided, further, That the Chairperson may
vote any decisions of the Commission within thirty (30) days from receipt of the same

At least one (1) of the sectoral representatives shall come from the disaster risk reduction
community.
SEC. 6. Section 7 of Republic Act. No. 9729 is hereby amended to read as follows:

The representatives shall be appointed by the President from a list of nominees submitted by
their respective groups and endorsed by the Commission. They shall serve for a maximum
term of six (6) years: Provided, however, That such appointment, may be terminated by the
President on the basis of the withdrawal of endorsement by or recommendation of the sector
they represent. Appointment to any vacancy shall be only for the unexpired term of the
predecessor.

SEC. 7. Qualifications, Tenure, Compensation and Removal 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 proven experience on climate change and of proven
honesty and integrity. 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.

Ex officio members of the advisory board may appoint their respective permanent alternate
representatives who shall have the rank of an Undersecretary.

SEC. 5. Section 6 of Republic Act No. 9729 is hereby amended to read as follows:

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, furthermore, That in no case shall a Commissioner be designated in a
temporary or acting capacity: Provided, finally, That any Commissioner may be removed from
office before the expiration of his/her term for cause or due to incapacity and in accordance
with due process required by pertinent laws.

(f) Create an enabling environment for the design of relevant and appropriate risk-sharing
and risk-transfer instruments;
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.

(g) Create an enabling environment that shall promote broader multi-stakeholder

participation and integrate climate change mitigation and adaptation;
(h) Formulate strategies for mitigating GHG emissions, anthropogenic sources and
enhance removal by sinks;

SEC. 7. Section 9 of Republic Act No. 9729 is hereby amended to read as follow;

(i) Coordinate and establish a close partnership with the National Disaster Risk Reduction
and Management Council in order to increase efficiency and effectiveness in reducing the
peoples vulnerability to climate-related disasters;

SEC. 9. Powers and Functions of the Commission. The Commission shall have the
following powers and functions:

(j) In coordination with the Department of foreign Affairs, represent the Philippines in the
climate change negotiations, constitute and lead the Philippine panel of negotiators to the
UNFCCC and the formulation of official Philippine positions on climate change
negotiation issues, and decision areas in the international negotiation arena;

(a) Coordinate and synchronize climate change programs in consultation with national
government agencies and other stakeholders;

(k) 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;

(b) Formulate a Strategic Framework 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;

(l) Coordinate with local government units (LGUs) and private entities to address
vulnerability to climate change impacts of regions, provinces, cities and municipalities;

(c) Exercise policy coordination to ensure the attainment of goals sat in the strategic
framework and program on climate change;

(m) Facilitate capacity building for local adaptation planning, implementation and
monitoring of climate change initiatives in vulnerable and marginalized communities and
areas;

(d) Recommend legislation, policies, strategies, programs on and appropriations for

climate change adaptation and mitigation and other related activities;
(e) 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;

(n) Promote and provide technical and financial support to local research and develop
merit programs and projects in vulnerable and marginalized communities and areas;
(o) Oversee the dissemination of information on climate change, local vulnerabilities and
risks, relevant laws and protocols and adaptation and mitigation measures;

(p) Establish a coordination mechanism with the concerned government agencies and
other stakeholders to ensure transparency and coherence in the administration of climate
funds taking into consideration the official Philippine position in international negotiations;
and
(q) Perform such other functions as may be necessary for the effective implementation of
this Act.

SEC. 9. Section 12 of Republic Act No. 9729 is hereby amended to read as follows:

SEC. 12. Components of the National Strategic Framework and Program on Climate
Change. The Framework shall include, but not limited to, the following components:

(a) National priorities;

SEC. 8. Section 11 of Republic Act No. 9729 is hereby amended to road as follows:
(b) Impact, vulnerability and adaptation assessments;
(c) Policy formulation;
SEC. 11. National Strategic Framework and Program on Climate Change. The
Commission shall, within six (6) months from the effectivity of this Act, formulate a National
Strategic Framework on Climate Change. The Frame work shall serve as the basis for
climate change planning, research and development, extension, monitoring of activities, and
climate financing, to protect vulnerable and marginalized communities from the adverse
effects of climate change.

(d) Compliance with international commitments;

(e) Research and development;
(f) Database development and management;
(g) Academic programs, capability building and mainstreaming;

The Framework shall be formulated based on climate change vulnerabilities, specific

adaptation needs, and mitigation potential, and in accordance with the international
agreements.

(h) Advocacy and information dissemination;

(i) Monitoring and evaluation; and
(j) Gender mainstreaming.

The Framework shall be reviewed every three (3) years, or as may be deemed necessary.
The review of the Framework shall involve a participatory and interactive process.
SEC. 10. Section 15 of Republic Act No. 9729 is hereby amended to read as follows:

SEC. 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, in coordination with the National Economic and Development Authority and
other concerned agencies, shall facilitate; the development and provision of a capacitybuilding program for LGUs in climate change, including the provision of necessary and
appropriate technology. The 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

(f) The Department of Finance (DOF) shall coordinate with the Commission on matters
concerning fiscal policies related to climate change and monitor and report measures
involving climate finance;
(g) The Department of Budget and Management (DBM) shall undertake the formulation of
the annual national budget in a way that ensures the appropriate prioritization and
allocation of funds to support climate change-related programs and projects in the annual
program of government;
(h) The Department, of Science and Technology (DOST), through the Philippine
Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), shall
promote, assist and, where appropriate, undertake scientific and technological research
and development, projections and analysis of future climate scenarios, including activities
relative to observation, collection, assessment and processing of climate-related data
such as, but not limited to, rainfall, sea-level-rise, extreme climate events, rise in
temperatures, and records of severe droughts monitored over long periods of time, in
coordination with LGUs in priority/target monitoring sites, for the benefit of agriculture,
natural resources, commerce and industry and in other areas identified to be vital to the
countrys development; and
(i) Government financial in institutions, except Bangko Sentral ng Pilipinas (BSP) shall,
any provision in their respective charters to the contrary notwithstanding, provide
preferential financial packages for climate change-related projects. In consultation with
the BSP, they shall, within thirty (30) days from the effectivity of this Act, issue and
promulgate the implementing guidelines therefor.

(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;
SEC. 11. Section 16 of Republic Act No. 9729 is hereby amended to read as follows:
(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;
SEC. 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
consult and coordinate with the nongovernment organizations (NGOs), civic organizations,

academe, peoples organizations, the private and corporate sectors and other concerned
stakeholder groups.

SEC. 13. Insert and renumber Sections 18, 19, 20, 21, 22, 23, 24 and 25 in Republic Act No.
9729 to read as follows:

SEC. 12. Section 17 of Republic Act No. 9729 is hereby amended to read as follows:

SEC. 18. Creation of the Peoples Survival Fund. A Peoples Survival Fund (PSF) is
hereby established as a special fund in the National Treasury for the financing of adaptation
programs and projects based on the National Strategic Framework.

SEC. 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 Department of
Finance: 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:

SEC. 19. Sources of the Fund. The amount of One billion pesos (P1,000,000,000.00)
shall be appropriated under the General Appropriations Act (GAA) as opening balance of the
PSF. Thereafter, the balance of the PSF from all sources including the amount appropriated
in the GAA for the current year shall not be less than One billion pesos
(P1,000,000,000.00): Provided, That the balance of the PSF may be increased as the need
arises, subject to review and evaluation by the Office of the President and the Department of
Budget and Management (DBM) of the accomplishments of the Commission and other
concerned LGUs: Provided, further, That the PSF shall not be used to fund personal services
and other operational expenses of the Commission: Provided, furthermore, That the balance
of the PSF including the amount appropriated in the GAA which shall form part of the fund
shall not revert to the general fund: Provided, finally, That the Commission shall submit to
Congress and the DBM a semi-annual physical/narrative and financial report on the utilization
of the PSF.

(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.

The PSF may be augmented by donations, endowments, grants and contributions, which
shall be exempt from donors tax and be considered as allowable deductions from the gross
income of the donor, in accordance with the provisions of the National Internal Revenue Code
of 1997, as amended.

SEC. 20. Uses of the Fund. The fund shall he used to support adaptation activities of
local governments and communities such as, but not limited to, the following:

(a) Adaptation activities, where sufficient information is available to warrant such

activities, in the areas of water resources management, land management, agriculture
and fisheries, health, infrastructure development, natural ecosystems including
mountainous and coastal ecosystems;
(b) Improvement of the monitoring of vector-borne diseases triggered by climate change,
and in this context improving disease control and prevention;
(c) Forecasting and early warning systems as part of preparedness for climate-related
hazards;

SEC. 21. The Peoples Survival Fund Board. There is hereby created a Peoples
Survival Fund Board, hereinafter referred to as the PSF Board, which shall be lodged under
the Commission. It shall be composed of the following:

(a) Secretary of the Department of Finance as Chair;

(b) Vice Chairperson of the Commission;
(c) Secretary of the Department of Budget and Management;

(d) Supporting institutional development, for local governments, in partnership with local
communities and civil society groups, for preventive measures, planning, preparedness
and management of impacts relating to climate change, including contingency planning,
in particular, for droughts and floods in areas prone to extreme climate events;

(d) Director-General of the National Economic and Development Authority;

(e) Strengthening existing; and where needed, establish regional centers and information
networks to support climate change adaptation initiatives and projects;

(f) Chairperson of the Philippine Commission on Women;

(f) Serving as a guarantee for risk insurance needs for farmers, agricultural workers and
other stakeholders; and
(g) Community adaptation support programs by local organizations accredited by the
Commission.

The fund shall be suppletory to any annual appropriations allocated by relevant government
agencies for climate change-related programs and projects and by LQUs. The fund shall
encourage counterpart funding arrangements among local governments, community
organizations, the private sector, and other entities.

(e) Secretary of the Department of the Interior and Local Government;

(g) A representative from the academe and scientific community;

(h) A representative from the business sector; and
(i) A representative from the NGOs: Provided, That the organizations of the academe and
scientific community, business and NGO representatives of the PSF Board are
disqualified from accessing the fund during their term, as set by the Commission, and a
year after their tenure in the PSF Board shall have been terminated or completed. The
said representatives shall be identified nod designated as such by the Commission.

SEC. 22. Powers and Functions of the PSF Board. The PSF Board, which shall
convene at least twice a year, shall have the following powers and functions:

(a) Promulgate policies that will maintain the fiduciary character of the Board;
(b) Provide overall strategic guidance in the management and use of the fund including,
but not limited to, the development of funding windows for various adaptation activities,
including counterpart funding arrangements, and guidelines for project assessment,
approval and evaluation;
(c) Develop social, financial and environmental safeguards to be used in project
implementation;

The Commission shall formulate mechanisms that ensure transparency and public access to
information regarding funding deliberations and decisions.

The Commission shall develop guidelines to accredit local organizations seeking to access
the fund. Organizations will be accredited based on criteria such as organizational
independence, track record in the community and/or field of expertise, financial management,
and participatory practices.

(d) Identify additional sources for the fund;

(e) Issue final approval of projects for the use of the fund;

SEC. 24. Prioritization of Fund Allocation. The Commission shall

criteria to prioritize use of the fund based on, but not. limited to, the following:

(f) Adopt a conflict of interest policy to ensure that board members will not vote on
projects if they have a direct stake therein; and
(g) Ensure an independent third party evaluation and auditing of activities supported by
the fund, taking into consideration the principles of transparency and accountability, and
government accounting and auditing roles and regulations.

(a) Level of risk and vulnerability to climate change;

(b) Participation of affected communities in the design of the project;
(c) Poverty reduction potential;

SEC 23. Role of the Commission in the Utilization of the Peoples Survival Fund.
The Climate Change Office, headed by the Vice Chairperson of the Commission, shall
evaluate and review the project proposals, and, with the concurrence and endorsement of a
majority of the climate change Commissioners appointed by the President, recommend
approval of project proposals to the PSF Board based on the policies, guidelines, and
safeguards, agreed by the PSF Board. The Commission shall utilize the expertise of relevant
government agencies in its advisory board and the national panel of technical experts in the
project appraisal, monitoring and evaluation process. The Commission shall not be a project
implementor.

(d) Cost effectiveness and attainability of the proposal;

(e) Identification of potential co-benefits extending beyond LGU territory;
(f) Maximization of multi-sectoral or cross-sectoral benefits;
(g) Responsiveness to gender-differentiated vulnerabilities; and
(h) Availability of climate change adaptation action plan.

develop

SEC. 25. Community Participation. To ensure transparency and participation of

vulnerable and marginalized groups in the adaptation projects to be supported by the fund,
community representatives and/or NGO counterparts may participate as observers in the
project identification, monitoring and evaluation process of the Commission.

SEC. 14. The succeeding sections shall be renumbered accordingly.

SEC. 15. 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.
SEC. 16. 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.

1. RA. 9367
Republic Act No. 9367

SEC. 17. Effectivity Clause. This Act shall take effect after fifteen (15) days following its
complete publication in at least two (2) national newspapers of general circulation.

Approved: AUG 16 2012

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;

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;

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;

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;

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;

k) DOE - shall refer to the Department of Energy created under Republic Act No.
7638, as amended;

c) Bioethanol fuel - shall refer to ethanol (C2H30H) produce from feedback and other
biomass.

l) DOLE - shall refer to the Department of Labor and Employment created under
Executive Order No. 126, as amended;

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)

m) DOF - shall refer to the Department of Finance created under Administrative

Orders No. 127 and 127-A;

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;

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 locally-produced 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.

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;

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

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.

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.

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;

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.

Approved: January 12, 2007

dependence on fossil fuels and thereby minimize the country's exposure to price
fluctuations in the international markets, the effects of which spiral down to almost all
sectors of the economy;
(b) Increase the utilization of renewable energy by institutionalizing the development
of national and local capabilities in the use of renewable energy systems, and
promoting its efficient and cost-effective commercial application by providing fiscal
and nonfiscal incentives;
(c) Encourage the development and utilization of renewable energy resources as
tools to effectively prevent or reduce harmful emissions and thereby balance the
goals of economic growth and development with the protection of health and the
environment; and

RA 9513
Republic Act No. 9513

December 16, 2008

AN ACT PROMOTING THE DEVELOPMENT, UTILIZATION AND COMMERCIALIZATION

OF RENEWABLE ENERGY RESOURCES AND FOR OTHER PURPOSES

(d) Establish the necessary infrastructure and mechanism to carry out the mandates
specified in this Act and other existing laws.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled::

Section 3. Scope. - This Act shall establish the framework for the accelerated development
and advancement of renewable energy resources, and the development of a strategic
program to increase its utilization.

CHAPTER I

Section 4. Definition of Terms. - As used in this Act, the following terms are herein defined:

TITLE AND DECLARATION OF POLICIES

Section 1. Short Title. - This Act shall be known as the "Renewable Energy Act of 2008". It
shall hereinafter be referred to as the "Act".
Section 2. Declaration of Policies. - It is hereby declared the policy of the State to:
(a) Accelerate the exploration and development of renewable energy resources such
as, but not limited to, biomass, solar, wind, hydro, geothermal and ocean energy
sources, including hybrid systems, to achieve energy self-reliance, through the
adoption of sustainable energy development strategies to reduce the country's

(a) "Biomass energy systems" refer to energy systems which use biomass resources
to produce heat, steam, mechanical power or electricity through either
thermochemical, biochemical or physico-chemical processes, or through such other
technologies which shall comply with prescribed environmental standards pursuant to
this Act;
(b) "Biomass resources" refer to non-fossilized, biodegradable organic material
originating from naturally occurring or cultured plants, animals and micro-organisms,
including agricultural products, by-products and residues such as, but not limited to,
biofuels except corn, soya beans and rice but including sugarcane and coconut, rice
hulls, rice straws, coconut husks and shells, corn cobs, corn stovers, bagasse,
biodegradable organic fractions of industrial and municipal wastes that can be used

in bioconversion process and other processes, as well as gases and liquids

recovered from the decomposition and/or extraction of non-fossilized and
biodegradable organic materials;
(c) "Board of Investments" (BOI) refers to an attached agency of the Department of
Trade and Industry created under Republic Act No. 5186, as amended;
(d) "Co-generation systems" refer to facilities which produce electrical and/or
mechanical energy and forms of useful thermal energy such as heat or steam which
are used for industrial, commercial heating or cooling purposes through the
sequential use of energy;
(e) "Department of Energy" (DOE) refers to the government agency created pursuant
to Republic Act No. 7638 whose functions are expanded in Republic Act No. 9136
and further expanded in this Act;
(f) "Department of Environment and Natural Resources" (DENR) refers to the
government agency created pursuant to Executive Order No. 192;
(g) "Department of Finance" (DOF) refers to the government agency created
pursuant to Executive Order No. 127, as amended;
(h) "Department of Science and Technology" (DOST) refers to the government
agency created pursuant to Executive Order No. 128;
(i) "Department of Trade and Industry" (DTI) refers to the government agency created
pursuant to Executive Order No. 133;
(j) "Distributed generation" refers to a system of small generation entities supplying
directly to the distribution grid, any one of which shall not exceed one hundred
kilowatts (100 kW) in capacity;
(k) "Distribution of Electricity" refers to the conveyance of electricity by a Distribution
Utility through its distribution system pursuant to the provision of Republic Act No.
9136;

(l) "Distribution Utility" (DU) refers to any electric cooperative, private corporation,
government-owned utility or existing local government unit which has an exclusive
franchise to operate a distribution system in accordance with its franchise and
Republic Act No. 9136;
(m) "Electric Power Industry Reform Act of 2001" or Republic Act No. 9136 refers to
the law mandating the restructuring of the electric power sector and the privatization
of the National Power Corporation;
(n) "Energy Regulatory Commission" (ERC) refers to the independent quasi-judicial
regulatory agency created pursuant to Republic Act No. 9136;
(o) "Generation Company" refers to any person or entity authorized by the ERC to
operate facilities used in the generation of electricity;
(p) "Generation Facility" refers to a facility for the production of electricity and/or
thermal energy such as, but not limited to, steam, hot or cold water;
(q) "Geothermal energy" as used herein and in the context of this Act, shall be
considered renewable and the provisions of this Act is therefore applicable thereto if
geothermal energy, as a mineral resource, is produced through: (1) natural recharge,
where the water is replenished by rainfall and the heat is continuously produced
inside the earth; and/or (2) enhanced recharge, where hot water used in the
geothermal process is re-injected into the ground to produce more steam as well as
to provide additional recharge to the convection system;
(r) "Geothermal Energy Systems" refer to machines or other equipment that converts
geothermal energy into useful power;
(s) "Geothermal Resources" refer to mineral resources, classified as renewable
energy resource, in the form of: (i) all products of geothermal processes, embracing
indigenous steam, hot water, and hot brines; (ii) steam and other gases, hot water,
and hot brines resulting from water, gas, or other fluids artificially introduced into
geothermal formations; (iii) heat or associated energy found in geothermal
formations; and (iv) any by-product derived from them;

(t) "Government Share" refers to the amount due the National Government and Local
Government Units from the exploitation, development, and utilization of naturallyoccurring renewable energy resources such as geothermal, wind, solar, ocean and
hydro excluding biomass;
(u) "Green Energy Option" refers to the mechanism to empower end-users to choose
renewable energy in meeting their energy requirements;
(v) "Grid" refers to the high voltage backbone system of interconnected transmission
lines, substations, and related facilities, located in each of Luzon, Visayas, and
Mindanao, or as may otherwise be determined by the ERC in accordance with
Republic Act No. 9136;
(w) "Hybrid Systems" refer to any power or energy generation facility which makes
use of two or more types of technologies utilizing both conventional and/or renewable
fuel sources, such as, but not limited to, integrated solar/wind systems,
biomass/fossil fuel systems, hydro/fossil fuel systems, integrated solar/biomass
systems, integrated wind/fossil fuel systems, with a minimum of ten (10) megawatts
or ten percent (10%) of the annual energy output provided by the RE component;
(x) "Hydroelectric Power Systems" or "Hydropower Systems" refer to water-based
energy systems which produce electricity by utilizing the kinetic energy of falling or
running water to turn a turbine generator;
(y) "Hydroelectric Power Development" or "Hydropower Development" refers to the
construction and installation of a hydroelectric power-generating plant and its
auxiliary facilities, such as diversion structure, headrace, penstock, substation,
transmission, and machine shop, among others;
(z) "Hydroelectric Power Resources" or "Hydropower Resources" refer to water
resources found technically feasible for development of hydropower projects which
include rivers, lakes, waterfalls, irrigation canals, springs, ponds, and other water
bodies;

(aa) "Local government share" refers to the amount due the LGUs from the
exploitation, development and utilization of naturally-occurring renewable energy
resources;
(bb) "Micro-scale Project" refers to an RE project with capacity not exceeding one
hundred (100) kilowatts;
(cc) "Missionary Electrification" refers to the provision of basic electricity service in
unviable areas with the aim of bringing the operations in these areas to viability
levels;
(dd) "National government share" refers to the amount due the national government
from the exploitation, development and utilization of naturally-occurring renewable
energy resources;
(ee) "National Power Corporation" (NPC) refers to the government corporation
created under Republic Act No. 6395, as amended by Republic Act No. 9136;
(ff) "National Transmission Corporation" (TRANSCO) refers to the corporation
created pursuant to Republic Act No. 9136 responsible for the planning, construction,
and centralized operation and maintenance of high voltage transmission facilities,
including grid interconnection and ancillary services;
(gg) "Net Metering" refers to a system, appropriate for distributed generation, in
which a distribution grid user has a two-way connection to the grid and is only
charged for his net electricity consumption and is credited for any overall contribution
to the electricity grid;
(hh) "Non-power applications" refer to renewable energy systems or facilities that
produce mechanical energy, combustible products such as methane gas, or forms of
useful thermal energy such as heat or steam, that are not used for electricity
generation, but for applications such as, but not limited to, industrial/commercial
cooling, and fuel for cooking and transport;

(ii) "Ocean Energy Systems" refer to energy systems which convert ocean or tidal
current, ocean thermal gradient or wave energy into electrical or mechanical energy;
(jj) "Off-Grid Systems" refer to electrical systems not connected to the wires and
related facilities of the On-Grid Systems of the Philippines;
(kk) "On-Grid System" refers to electrical systems composed of interconnected
transmission lines, distribution lines, substations, and related facilities for the purpose
of conveyance of bulk power on the grid of the Philippines;
(ll) "Philippine Electricity Market Corporation" (PEMC) refers to the Corporation
incorporated upon the initiative of the DOE composed of all Wholesale Electricity
Spot Market (WESM) Members and whose Board of Directors will be the PEM Board;
(mm) "Philippine National Oil Company" (PNOC) refers to the government agency
created pursuant to Presidential Decree No. 334, as amended;
(nn) "Power applications" refer to renewable energy systems or facilities that produce
electricity;
(oo) "Registered RE Developer" refers to a RE Developer duly registered with the
DOE;
(pp) "Renewable Energy (Systems) Developers" or "RE Developers" refer to
individual/s or a group of individuals formed in accordance with existing Philippine
Laws engaged in the exploration, development and utilization of RE resources and
actual operation of RE systems/facilities;
(qq) "Renewable Energy Market" (REM) refers to the market where the trading of the
RE certificates equivalent to an amount of power generated from RE resources is
made;
(rr) "Renewable Energy Policy Framework" (REPF) refers to the long-term policy
developed by the DOE which identifies among others, the goals and targets for the
development and utilization of renewable energy in the country;

(ss) "Renewable Portfolio Standards" refer to a market-based policy that requires

electricity suppliers to source an agreed portion of their energy supply from eligible
RE resources;
(tt) "Renewable Energy Service (Operating) Contract (RE Contract) " refers to the
service agreement between the Government, through the DOE, and RE Developer
over a period in which the RE Developer has the exclusive right to a particular RE
area for exploration and development. The RE Contract shall be divided into two (2)
stages: the pre-development stage and the development/commercial stage. The
preliminary assessment and feasibility study up to financial closing shall refer to the
pre-development stage. The construction and installation of facilities up to operation
phase shall refer to the development stage;
(uu) "Renewable Energy Resources" (RE Resources) refer to energy resources that
do not have an upper limit on the total quantity to be used. Such resources are
renewable on a regular basis, and whose renewal rate is relatively rapid to consider
availability over an indefinite period of time. These include, among others, biomass,
solar, wind, geothermal, ocean energy, and hydropower conforming with
internationally accepted norms and standards on dams, and other emerging
renewable energy technologies;
(vv) "Renewable Energy Systems" (RE Systems) refer to energy systems which
convert RE resources into useful energy forms, like electrical, mechanical, etc.;
(ww) "Rural Electrification" refers to the delivery of basic electricity services,
consisting of power generation, sub-transmission, and/or extension of associated
power delivery system that would bring about important social and economic benefits
to the countryside;
(xx) "Solar Energy" refers to the energy derived from solar radiation that can be
converted into useful thermal or electrical energy;
(yy) "Solar Energy Systems" refer to energy systems which convert solar energy into
thermal or electrical energy;

(zz) "Small Power Utilities Group" (SPUG) refers to the functional unit of the NPC
mandated under Republic Act No. 9136 to pursue missionary electrification function;
(aaa) "Supplier" refers to any person or entity authorized by the ERC to sell, broker,
market or aggregate electricity to the end-users;
(bbb) "Transmission of Electricity" refers to the conveyance of electric power through
transmission lines as defined under Republic Act No. 9136 by TRANSCO or its
buyer/concessionaire in accordance with its franchise and Republic Act No. 9136;
(ccc) "Wind Energy" refers to the energy that can be derived from wind that is
converted into useful electrical or mechanical energy;
(ddd) "Wind Energy Systems" refer to the machines or other related equipment that
convert wind energy into useful electrical or mechanical energy;
(eee) "Wholesale Electricity Spot Market" (WESM) refers to the wholesale electricity
spot market created pursuant to Republic Act No. 9136;
CHAPTER II
Organization
Section 5. Lead Agency. - The DOE shall be the lead agency mandated to implement the
provisions of this Act.
CHAPTER III
ON-GRID RENEWABLE ENERGY DEVELOPMENT

Section 6. Renewable Portfolio Standard (RPS). - All stakeholders in the electric power
industry shall contribute to the growth of the renewable energy industry of the country.
Towards this end, the National Renewable Energy Board (NREB), created under Section 27
of this Act, shall set the minimum percentage of generation from eligible renewable energy
resources and determine to which sector RPS shall be imposed on a per grid basis within one
(1) year from the effectivity of this Act.
Section 7. Feed-In Tariff System. - To accelerate the development of emerging renewable
energy resources, a feed-in tariff system for electricity produced from wind, solar, ocean, runof-river hydropower and biomass is hereby mandated. Towards this end, the ERC in
consultation with the National Renewable Energy Board (NREB) created under Section 27 of
this Act shall formulate and promulgate feed-in tariff system rules within one (1) year upon the
effectivity of this Act which shall include, but not limited to the following:
(a) Priority connections to the grid for electricity generated from emerging renewable
energy resources such as wind, solar, ocean, run-of-river hydropower and biomass
power plants within the territory of the Philippines;
(b) The priority purchase and transmission of, and payment for, such electricity by the
grid system operators;
(c) Determine the fixed tariff to be paid to electricity produced from each type of
emerging renewable energy and the mandated number of years for the application of
these rates, which shall not be less than twelve (12) years;
(d) The feed-in tariff to be set shall be applied to the emerging renewable energy to
be used in compliance with the renewable portfolio standard as provided for in this
Act and in accordance with the RPS rules that will be established by the DOE.
Section 8. Renewable Energy Market (REM). - To facilitate compliance with Section 6 of
this Act, the DOE shall establish the REM and shall direct PEMC to implement changes to the
WESM Rules in order to incorporate the rules specific to the operation of the REM under the
WESM.

The PEMC shall, under the supervision of the DOE, establish a Renewable Energy Registrar
within one (1) year from the effectivity of this Act and shall issue, keep and verify RE
Certificates corresponding to energy generated from eligible RE facilities. Such certificates
will be used for compliance with the RPS. For this purpose, a transaction fee, equal to half of
what PEMC currently charges regular WESM players, may be imposed by PEMC.
Section 9. Green Energy Option. - The DOE shall establish a Green Energy Option
program which provides end-users the option to choose RE resources as their sources of
energy. In consultation with the NREB, the DOE shall promulgate the appropriate
implementing rules and regulations which are necessary, incidental or convenient to achieve
the objectives set forth herein.
Upon the determination of the DOE of its technical viability and consistent with the
requirements of the green energy option program, end users may directly contract from RE
facilities their energy requirements distributed through their respective distribution utilities.

energy and the distribution utility shall be able to use this RE certificate in compliance with its
obligations under RPS.
The DOE, ERC, TRANSCO or its successors-in-interest, DUs, PEMC and all relevant parties
are hereby mandated to provide the mechanisms for the physical connection and commercial
arrangements necessary to ensure the success of the Net-metering for Renewable Energy
program, consistent with the Grid and Distribution Codes.
Section 11. Transmission and Distribution System Development. - TRANSCO or its
successors-in-interest or its buyer/concessionaire and all DUs, shall include the required
connection facilities for RE-based power facilities in the Transmission and Distribution
Development Plans: Provided, That such facilities are approved by the DOE. The connection
facilities of RE power plants, including the extension of transmission and distribution lines,
shall be subject only to ancillary services covering such connections.
CHAPTER IV

Consistent herewith, TRANSCO or its successors-in-interest, DUs, PEMC and all relevant
parties are hereby mandated to provide the mechanisms for the physical connection and
commercial arrangements necessary to ensure the success of the Green Energy Option. The
end-user who will enroll under the energy option program should be informed by way of its
monthly electric bill, how much of its monthly energy consumption and generation charge is
provided by RE facilities.
Section 10. Net-metering for Renewable Energy. - Subject to technical considerations and
without discrimination and upon request by distribution end-users, the distribution utilities
shall enter into net-metering agreements with qualified end-users who will be installing RE
system.

OFF-GRID RENEWABLE ENERGY DEVELOPMENT

Section 12. Off-Grid Areas. - Within one (1) year from the effectivity of this Act, NPC-SPUG
or its successors-in-interest and/or qualified third parties in off-grid areas shall, in the
performance of its mandate to provide missionary electrification, source a minimum
percentage of its total annual generation upon recommendation of the NREB from available
RE resources in the area concerned, as may be determined by the DOE.
As used in this Act, successors-in-interest refer to entities deemed technically and financially
capable to serve/take over existing NPC-SPUG areas.

The ERC, in consultation with the NREB and the electric power industry participants, shall
establish net metering interconnection standards and pricing methodology and other
commercial arrangements necessary to ensure success of the net-metering for renewable
energy program within one (1) year upon the effectivity of this Act.

Eligible RE generation in off-grid and missionary areas shall be eligible for the provision of RE
Certificates defined in Section 8 of this Act. In the event there are no viable RE resources in
the off-grid and missionary areas, the relevant electricity supplier in the off-grid and
missionary areas shall still be obligated under Section 6 of this Act.

The distribution utility shall be entitled to any Renewable Energy Certificate resulting from
net-metering arrangement with the qualified end-user who is using an RE resource to provide

CHAPTER V

GOVERNMENT SHARE
Section 13. Government Share. - The government share on existing and new RE
development projects shall be equal to one percent (1%) of the gross income of RE resource
developers resulting from the sale of renewable energy produced and such other income
incidental to and arising from the renewable energy generation, transmission, and sale of
electric power except for indigenous geothermal energy, which shall be at one and a half
percent (1.5%) of gross income.
To further promote the development of RE projects, the government hereby waives its share
from the proceeds of micro-scale projects for communal purposes and non-commercial
operations, which are not greater than one hundred (100) kilowatts.
CHAPTER VI
ENVIRONMENTAL COMPLIANCE
Section 14. Compliance with Environmental Regulations. - All RE explorations,
development, utilization, and RE systems operations shall be conducted in accordance with
existing environmental regulations as prescribed by the DENR and/or any other concerned
government agency.
CHAPTER VII
GENERAL INCENTIVES
Section 15. Incentives for Renewable Energy Projects and Activities. - RE developers of
renewable energy facilities, including hybrid systems, in proportion to and to the extent of the
RE component, for both power and non-power applications, as duly certified by the DOE, in
consultation with the BOI, shall be entitled to the following incentives:
(a) Income Tax Holiday (ITH) - For the first seven (7) years of its commercial
operations, the duly registered RE developer shall be exempt from income taxes
levied by the national government.

Additional investments in the project shall be entitled to additional income tax

exemption on the income attributable to the investment: Provided, That the discovery
and development of new RE resource shall be treated as a new investment and shall
therefore be entitled to a fresh package of incentives: Provided, further, That the
entitlement period for additional investments shall not be more than three (3) times
the period of the initial availment of the ITH.
(b) Duty-free Importation of RE Machinery, Equipment and Materials - Within the first
ten (10) years upon the issuance of a certification of an RE developer, the importation
of machinery and equipment, and materials and parts thereof, including control and
communication equipment, shall not be subject to tariff duties: Provided, however,
That the said machinery, equipment, materials and parts are directly and actually
needed and used exclusively in the RE facilities for transformation into energy and
delivery of energy to the point of use and covered by shipping documents in the
name of the duly registered operator to whom the shipment will be directly delivered
by customs authorities: Provided, further, That endorsement of the DOE is obtained
before the importation of such machinery, equipment, materials and parts are made.
Endorsement of the DOE must be secured before any sale, transfer or disposition of
the imported capital equipment, machinery or spare parts is made: Provided, That if
such sale, transfer or disposition is made within the ten (10)-year period from the
date of importation, any of the following conditions must be present:
(i) If made to another RE developer enjoying tax and duty exemption on
imported capital equipment;
(ii) If made to a non-RE developer, upon payment of any taxes and duties
due on the net book value of the capital equipment to be sold;
(iii) Exportation of the used capital equipment, machinery, spare parts or
source documents or those required for RE development; and
(iv) For reasons of proven technical obsolescence.

When the aforementioned sale, transfer or disposition is made under any of the
conditions provided for in the foregoing paragraphs after ten (10) years from the date
of importation, the sale, transfer or disposition shall no longer be subject to the
payment of taxes and duties;

regulations prescribed by the Secretary of the Department of Finance and the

provisions of the National Internal Revenue Code (NIRC) of 1997, as amended. Any
of the following methods of accelerated depreciation may be adopted:
i) Declining balance method; and

(c) Special Realty Tax Rates on Equipment and Machinery. - Any law to the contrary
notwithstanding, realty and other taxes on civil works, equipment, machinery, and
other improvements of a Registered RE Developer actually and exclusively used for
RE facilities shall not exceed one and a half percent (1.5%) of their original cost less
accumulated normal depreciation or net book value: Provided, That in case of an
integrated resource development and generation facility as provided under Republic
Act No. 9136, the real property tax shall only be imposed on the power plant;
(d) Net Operating Loss Carry-Over (NOLCO). - The NOLCO of the RE Developer
during the first three (3) years from the start of commercial operation which had not
been previously offset as deduction from gross income shall be carried over as a
deduction from gross income for the next seven (7) consecutive taxable years
immediately following the year of such loss: Provided, however, That operating loss
resulting from the availment of incentives provided for in this Act shall not be entitled
to NOLCO;
(e) Corporate Tax Rate. - After seven (7) years of income tax holiday, all RE
Developers shall pay a corporate tax of ten percent (10%) on its net taxable income
as defined in the National Internal Revenue Act of 1997, as amended by Republic Act
No. 9337. Provided, That the RE Developer shall pass on the savings to the endusers in the form of lower power rates.
(f) Accelerated Depreciation. - If, and only if, an RE project fails to receive an ITH
before full operation, it may apply for Accelerated Depreciation in its tax books and be
taxed based on such: Provided, That if it applies for Accelerated Depreciation, the
project or its expansions shall no longer be eligible for an ITH. Accelerated
depreciation of plant, machinery, and equipment that are reasonably needed and
actually used for the exploration, development and utilization of RE resources may be
depreciated using a rate not exceeding twice the rate which would have been used
had the annual allowance been computed in accordance with the rules and

ii) Sum-of-the years digit method

(g) Zero Percent Value-Added Tax Rate. - The sale of fuel or power generated from
renewable sources of energy such as, but not limited to, biomass, solar, wind,
hydropower, geothermal, ocean energy and other emerging energy sources using
technologies such as fuel cells and hydrogen fuels, shall be subject to zero percent
(0%) value-added tax (VAT), pursuant to the National Internal Revenue Code (NIRC)
of 1997, as amended by Republic Act No. 9337.
All RE Developers shall be entitled to zero-rated value added tax on its purchases of
local supply of goods, properties and services needed for the development,
construction and installation of its plant facilities.
This provision shall also apply to the whole process of exploring and developing
renewable energy sources up to its conversion into power, including but not limited to
the services performed by subcontractors and/or contractors.
(h) Cash Incentive of Renewable Energy Developers for Missionary Electrification. - A
renewable energy developer, established after the effectivity of this Act, shall be
entitled to a cash generation-based incentive per kilowatt hour rate generated,
equivalent to fifty percent (50%) of the universal charge for power needed to service
missionary areas where it operates the same, to be chargeable against the universal
charge for missionary electrification;
(i) Tax Exemption of Carbon Credits. - All proceeds from the sale of carbon emission
credits shall be exempt from any and all taxes;
(j) Tax Credit on Domestic Capital Equipment and Services. - A tax credit equivalent
to one hundred percent (100%) of the value of the value-added tax and custom

duties that would have been paid on the RE machinery, equipment, materials and
parts had these items been imported shall be given to an RE operating contract
holder who purchases machinery, equipment, materials, and parts from a domestic
manufacturer for purposes set forth in this Act: Provided, That prior approval by the
DOE was obtained by the local manufacturer: Provided, further, That the acquisition
of such machinery, equipment, materials, and parts shall be made within the validity
of the RE operating contract.

dispatch. All provisions under the WESM Rules, Distribution and Grid Codes which do not
allow "must dispatch" status for intermittent RE resources shall be deemed amended or
modified. The PEMC and TRANSCO or its successors-in-interest shall implement technical
mitigation and improvements in the system in order to ensure safety and reliability of
electricity transmission.

Section 16. Environmental Compliance Certificate (ECC). - Notwithstanding Section 17

(b) (3) (iii) of Republic Act No. 7160, it would be sufficient for the renewable energy developer
to secure the Environmental Compliance Certificate (ECC) from the corresponding regional
office of the DENR.

As used in this Act, RE generating unit with intermittent RE resources refers to a RE

generating unit or group of units connected to a common connection point whose RE energy
resource is location-specific naturally difficult to precisely predict the availability of RE energy
resource thereby making the energy generated variable, unpredictable and irregular and the
availability of the resource inherently uncontrollable, which include plants utilizing wind, solar,
run-of-river hydro or ocean energy.

Section 17. Exemption from the Universal Charge. - Power and electricity generated
through the RES for the generator's own consumption and/or for free distribution in the offgrid areas shall be exempted from the payment of the universal charge provided for under
Section 34 of Republic Act No. 9136.

Section 21. Incentives for RE Commercialization. - All manufacturers, fabricators and

suppliers of locally-produced RE equipment and components duly recognized and accredited
by the DOE, in consultation with DOST, DOF and DTI, shall, upon registration with the BOI,
be entitled to the privileges set forth under this section.

Section 18. Payment of Transmission Charges. - A registered renewable energy developer

producing power and electricity from an intermittent RE resource may opt to pay the
transmission and wheeling charges of TRANSCO or its successors-in-interest on a per
kilowatt-hour basis at a cost equivalent to the average per kilowatt-hour rate of all other
electricity transmitted through the grid.

Consistent with Article 7, Item (20) of EO No. 226, the registration with the BOI, as provided
for in Section 15 and Section 21 of this Act, shall be carried out through an agreement and an
administrative arrangement between the BOI and the DOE, with the end-view of facilitating
the registration of qualified RE facilities based on the implementing rules and regulations that
will be developed by DOE. It is further mandated that the applications for registration will be
positively acted upon by BOI on the basis of the accreditation issued by DOE.

Section 19. Hybrid and Cogeneration Systems. - The tax exemptions and/or incentives
provided for in Section 15 of this Act shall be availed of by registered RE Developer of hybrid
and
cogeneration
systems
utilizing
both
RE
sources
and
conventional
energy: Provided, however, That the tax exemptions and incentives shall apply only to the
equipment, machinery and/or devices utilizing RE resources.

The Renewable Energy Sector is hereby declared a priority investment sector that will
regularly form part of the country's Investment Priority Plan, unless declared otherwise by
law. As such, all entities duly accredited by the DOE under this Act shall be entitled to all the
incentives provided herein.

Section 20. Intermittent RE Resources. - TRANSCO or its successors-in-interest, in

consultation with stakeholders, shall determine the maximum penetration limit of the
Intermittent RE-based power plants to the Grid, through technical and economic analysis.
Qualified and registered RE generating units with intermittent RE resources shall be
considered "must dispatch" based on available energy and shall enjoy the benefit of priority

(a) Tax and Duty-free Importation of Components, Parts and Materials. - All
shipments necessary for the manufacture and/or fabrication of RE equipment and
components shall be exempted from importation tariff and duties and value added
tax: Provided, however, That the said components, parts and materials are: (i) not
manufactured domestically in reasonable quantity and quality at competitive prices;

(ii) directly and actually needed and shall be used exclusively in the
manufacture/fabrication of RE equipment; and (iii) covered by shipping documents in
the name of the duly registered manufacturer/fabricator to whom the shipment will be
directly delivered by customs authorities: Provided, further, That prior approval of the
DOE was obtained before the importation of such components, parts and materials;
(b) Tax Credit on Domestic Capital Components, Parts and Materials. - A tax credit
equivalent to one hundred percent (100%) of the amount of the value-added tax and
customs duties that would have been paid on the components, parts and materials
had these items been imported shall be given to an RE equipment manufacturer,
fabricator, and supplier duly recognized and accredited by the DOE who purchases
RE components, parts and materials from a domestic manufacturer: Provided, That
such components, and parts are directly needed and shall be used exclusively by the
RE manufacturer, fabricator and supplier for the manufacture, fabrication and sale of
the RE equipment: Provided, further, That prior approval by the DOE was obtained
by the local manufacturer;
(c) Income Tax Holiday and Exemption. - For seven (7) years starting from the date of
recognition/accreditation, an RE manufacturer, fabricator and supplier of RE
equipment shall be fully exempt from income taxes levied by the National
Government on net income derived only from the sale of RE equipment, machinery,
parts and services; and
(d) Zero-rated value added tax transactions - All manufacturers, fabricators and
suppliers of locally produced renewable energy equipment shall be subject to zerorated value added tax on its transactions with local suppliers of goods, properties and
services.
Section 22. Incentives for Farmers Engaged in the Plantation of Biomass Resources. For a period of ten (10) years after the effectivity of this Act, all individuals and entities
engaged in the plantation of crops and trees used as biomass resources such as but not
limited to jatropha, coconut, and sugarcane, as certified by the Department of Energy, shall
be entitled to duty-free importation and be exempted from Value-Added Tax (VAT) on all types
of agricultural inputs, equipment and machinery such as, but not limited to, fertilizer,
insecticide, pesticide, tractor, trailers, trucks, farm implements and machinery, harvesters,

threshers, hybrid seeds, genetic materials, sprayers, packaging machinery and materials,
bulk handling facilities, such as conveyors and mini-loaders, weighing scales, harvesting
equipment, and spare parts of all agricultural equipment.
Section 23. Tax Rebate for Purchase of RE Components. - To encourage the adoption of
RE technologies, the DOF, in consultation with DOST, DOE, and DTI, shall provide rebates
for all or part of the tax paid for the purchase of RE equipment for residential, industrial, or
community use. The DOF shall also prescribe the appropriate period for granting the tax
rebates.
Section 24. Period of Grant of Fiscal Incentives. - The fiscal incentives granted under
Section 15 of this Act shall apply to all RE capacities upon the effectivity of this Act. The
National Renewable Energy Board, in coordination with the Department of Energy, shall
submit a yearly report on the implementation of this Act to the Philippine Congress, through
the Joint Congressional Power Commission, every January of each year following the period
in review, indicating among others, the progress of RE development in the country and the
benefits and impact generated by the development and utilization of its renewable energy
resources in the context of its energy security and climate change imperatives. This shall
serve as basis for the Joint Congressional Power Commission review of the incentives as
provided for in this Act towards ensuring the full development of the country's RE capacities
under a rationalized market and incentives scheme.
Section 25. Registration of RE Developers and local manufacturers, fabricators and
suppliers of locally-produced renewable energy equipment. - RE Developers and local
manufacturers, fabricators and suppliers of locally-produced renewable energy equipment
shall register with the Department of Energy, through the Renewable Energy Management
Bureau. Upon registration, a certification shall be issued to each RE Developer and local
manufacturer, fabricator and supplier of locally-produced renewable energy equipment to
serve as the basis of their entitlement to incentives provided under Chapter VII of this Act.
Section 26. Certification from the Department of Energy. - All certifications required to
qualify RE developers to avail of the incentives provided for under this Act shall be issued by
the DOE through the Renewable Energy Management Bureau.

The Department of Energy, through the Renewable Energy Management Bureau shall issue
said certification fifteen (15) days upon request of the renewable energy developer or
manufacturer, fabricator or supplier.
Provided, That the certification issued by the Department of Energy shall be without prejudice
to any further requirements that may be imposed by the concerned agencies of the
government charged with the administration of the fiscal incentives abovementioned.

The NREB shall have the following powers and functions:

(a) Evaluate and recommend to the DOE the mandated RPS and minimum RE
generation capacities in off-grid areas, as it deems appropriate;
(b) Recommend specific actions to facilitate the implementation of the National
Renewable Energy Program (NREP) to be executed by the DOE and other
appropriate agencies of government and to ensure that there shall be no overlapping
and redundant functions within the national government departments and agencies
concerned;

CHAPTER VIII
GENERAL PROVISIONS
Section 27. Creation of the National Renewable Energy Board (NREB). - The NREB is
hereby created. It shall be composed of a Chairman and one (1) representative each from the
following agencies: DOE, DTI, DOF, DENR, NPC, TRANSCO or its successors-in-interest,
PNOC and PEMC who shall be designated by their respective secretaries on a permanent
basis; and one (1) representative each from the following sectors: RE Developers,
Government Financial Institutions (GFIs), private distribution utilities, electric cooperatives,
electricity suppliers and non-governmental organizations, duly endorsed by their respective
industry associations and all to be appointed by the President of the Republic of the
Philippines.

(c) Monitor and review the implementation of the NREP, including compliance with
the RPS and minimum RE generation capacities in off-grid areas;
(d) Oversee and monitor the utilization of the Renewable Energy Trust Fund created
pursuant to Section 28 of this Act and administered by the DOE; and
(e) Perform such other functions, as may be necessary, to attain the objectives of this
Act.
Section 28. Renewable Energy Trust Fund (RETF). - A Renewable Energy Trust Fund is
hereby established to enhance the development and greater utilization of renewable energy.
It shall be administered by the DOE as a special account in any of the GFIs. The RETF shall
be exclusively used to:

The Chairman shall, within one (1) month from the effectivity of this Act, convene the NREB.
The NREB shall be assisted by a Technical Secretariat from the Renewable Energy
Management Bureau of the DOE, created under Section 32 hereof, and shall directly report to
the Office of the Secretary or the Undersecretary of the Department, as the case maybe, on
matters pertaining to the activities of the NREB. The number of staff of the Technical
Secretariat and the creation of corresponding positions necessary to complement and/or
augment the existing plantilla of the REMB shall be determined by the Board, subject to
approval by the Department of Budget and Management (DBM) and to existing civil service
rules and regulations.

(a) Finance the research, development, demonstration, and promotion of the

widespread and productive use of RE systems for power and non-power applications,
as well as to provide funding for R & D institutions engaged in renewable energy
studies undertaken jointly through public-private sector partnership, including
provision for scholarship and fellowship for energy studies;
(b) Support the development and operation of new RE resources to improve their
competitiveness in the market: Provided, That the grant thereof shall be done through
a competitive and transparent manner;

(c) Conduct nationwide resource and market assessment studies for the power and
non-power applications of renewable energy systems;

(f) One and 1/2 percent (1.5%) of the proceeds of the Government share collected
from the development and use of indigenous non-renewable energy resources;

(d) Propagate RE knowledge by accrediting, tapping, training, and providing benefits

to institutions, entities and organizations which can extend the promotion and
dissemination of RE benefits to the national and local levels; and

(g) Any revenue generated from the utilization of the RETF; and

(e) Fund such other activities necessary or incidental to the attainment of the
objectives of this Act.
Use of the fund may be through grants, loans, equity investments, loan guarantees,
insurance, counterpart fund or such other financial arrangements necessary for the
attainment of the objectives of this Act: Provided, That the use or allocation thereof shall, as
far as practicable, be done through a competitive and transparent manner.
The RETF shall be funded from:
(a) Proceeds from the emission fees collected from all generating facilities consistent
with Republic Act No. 8749 or the Philippine Clean Air Act;
(b) One and 1/2 percent (1.5%) of the net annual income of the Philippine Charity
Sweepstakes Office;
(c) One and 1/2 percent (1.5%) of the net annual income of the Philippine
Amusement and Gaming Corporation;
(d) One and 1/2 percent (1.5%) of the net annual dividends remitted to the National
Treasury of the Philippine National Oil Company and its subsidiaries;
(e) Contributions, grants and donations: Provided, That all contributions, grants and
donations made to the RETF shall be tax deductible subject to the provisions of the
National Internal Revenue Code. Towards this end, the BIR shall assist the DOE in
formulating the Rules and Regulations to implement this provision;

(h) Proceeds from the fines and penalties imposed under this Act.
Section 29. Financial Assistance Program. - Government financial institutions such as the
Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP), Phil-Exim
Bank and other government financial institutions shall, in accordance with and to the extent
allowed by the enabling provisions of their respective charters or applicable laws, provide
preferential financial packages for the development, utilization and commercialization of RE
projects as duly recommended and endorsed by the DOE.
Section 30. Adoption of Waste-To-Energy Technologies. - The DOE shall, where
practicable, encourage the adoption of waste-to-energy facilities such as, but not limited to,
biogas systems. The DOE shall, in coordination with the DENR, ensure compliance with this
provision.
As used in this Act, waste-to-energy technologies shall refer to systems which convert to
biodegradable materials such as, but not limited to, animal manure or agricultural waste, into
useful energy through processes such as anaerobic digestion, fermentation and gasification,
among others, subject to the provisions and intent of Republic Act No. 8749 (Clean Air Act of
1999) and Republic Act No. 9003 (Ecological Solid Waste Management Act of 2000).
Section 31. Incentives for RE Host Communities/LGUs. - Eighty percent (80%) of the
share from royalty and/or government share of RE host communities/LGUs from RE projects
and activities shall be used directly to subsidize the electricity consumption of end users in
the RE host communities/LGUs whose monthly consumption do not exceed one hundred
(100) kwh. The subsidy may be in the form of rebates, refunds and/or any other forms as may
be determined by DOE, DOF and ERC, in coordination with NREB.
The DOE, DOF and ERC, in coordination with the NREB and in consultation with the
distribution utilities shall promulgate the mechanisms to implement this provision within six
months from the effectivity of this Act.

Section 32. Creation of the Renewable Energy Management Bureau. - For the purpose of
implementing the provisions of this Act, a Renewable Energy Management Bureau (REMB)
under the DOE is hereby established, and the existing Renewable Energy Management
Division of the Energy Utilization Management Bureau of the DOE, whose plantilla shall form
the nucleus of REMB, is hereby dissolved. The organizational structure and staffing
complement of the REMB shall be determined by the Secretary of the DOE, in consultation
with the Department of Budget and Management, in accordance with existing civil service
rules and regulations. The budgetary requirements necessary for the creation of the REMB
shall be taken from the current appropriations of the DOE. Thereafter, the funding for the
REMB shall be included in the annual General Appropriations Act.

(f) Provide information, consultation and technical training and advisory services to
developers, practitioners and entities involved in renewable energy technology and
develop renewable energy technology development strategies; and
(g) Perform other functions that may be necessary for the effective implementation of
this Act and the accelerated development and utilization of the renewable energy
resources in the country.
CHAPTER IX
FINAL PROVISIONS

The REMB shall have the following powers and functions:

(a) Implement policies, plans and programs related to the accelerated development,
transformation, utilization and commercialization of renewable energy resources and
technologies;

Section 33. Implementing Rules and Regulations (IRR). - Within six (6) months from the
effectivity of this Act, the DOE shall, in consultation with the Senate and House Committees
on Energy, relevant government agencies and RE stakeholders, promulgate the IRR of this
Act.

(b) Develop and maintain a centralized, comprehensive and unified data and
information base on renewable energy resources to ensure the efficient evaluation,
analysis, and dissemination of data and information on renewable energy resources,
development, utilization, demand and technology application;

Section 34. Congressional Oversight. - Upon the effectivity of this Act, the Joint
Congressional Power Commission created under Section 62 of Republic Act No. 9136,
otherwise known as the "Electric Power Industry Reform Act of 2001" shall exercise oversight
powers over the implementation of this Act.

(c) Promote the commercialization/application of renewable energy resources

including new and emerging technologies for efficient and economical transformation,
conversion, processing, marketing and distribution to end users;

Section 35. Prohibited Acts. - The following acts shall be prohibited:

(d) Conduct technical research, socio-economic and environmental impact studies of

renewable energy projects for the development of sustainable renewable energy
systems;
(e) Supervise and monitor activities of government and private companies and
entities on renewable energy resources development and utilization to ensure
compliance with existing rules, regulations, guidelines and standards;

(a) Non-compliance or violation of the RPS rules;

(b) Willful refusal to undertake net metering arrangements with qualified distribution
grid users;
(c) Falsification or tampering of public documents or official records to avail of the
fiscal and non-fiscal incentives provided under this Act;
(d) Failure and willful refusal to issue the single certificate referred to in Section 26 of
this Act; and

(e) Non-compliance with the established guidelines that DOE will adopt for the
implementation of this Act.
Section 36. Penalty Clause. - Any person who willfully commits any of the prohibited acts
enumerated under this Act, shall be imposed with the penalties provided herein. Any person,
who willfully aids or abets 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, partnership 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 any prohibited acts provided for under Section 35, upon conviction
thereof, shall suffer the penalty of imprisonment of from one (1) year to five (5) years, or a
fine ranging from a minimum of One Hundred Thousand Pesos (P100,000.00) to One
Hundred Million Pesos (P100,000,000.00), or twice the amount of damages caused or costs
avoided for non-compliance, whichever is higher, or both upon the discretion of the court.
The DOE is further empowered to impose administrative fines and penalties for any violation
of the provisions of this Act, its IRR and other issuances relative to this Act.
This is without prejudice to the penalties provided for under existing environmental
regulations prescribed by the DENR and/or any other concerned government agency.
Section 37. 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 the provisions of this Act shall be included in the annual General
Appropriations Act.
Section 38. Separability Clause. - If any provision of this Act is held invalid unconstitutional,
the remainder of the Act or the provision not otherwise affected shall remain valid and
subsisting.

Section 39. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, administrative rule or regulation contrary to or inconsistent with the
provisions of this Act is hereby repealed, modified or amended accordingly.
Consistent with the foregoing paragraph and Section 13 of this Act, Section 1 of Presidential
Decree No. 1442 or the Geothermal Resources Exploration and Development Act, insofar as
the exploration of geothermal resources by the government, and Section 10 (1) of Republic
Act No. 7156 otherwise known as the "Mini-Hydro Electric Power Incentive Act", insofar as
the special privilege tax rate of two percent (2%) are hereby repealed, modified or amended
accordingly.
Section 40. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved: DEC 16, 2008