Prohibited Acts

PROHIBITED ACTS | FINES AND PENALTIES | PRESIDENTIAL
DECREE 1586 ENVIRONMENTAL IMPACT STATEMENT (EIS)

STATEMENT OF 1978
Legal Basis of Fines and Penalties
The fines, penalties and sanctions of the Philippine EIS System is based on the Section
9.0 provision of P.D. 1586, as follows: " Penalty for Violation.- Any person, corporation
or partnership found violating Section 4 of this Decree, or the terms and conditions in
the issuance of the Environmental Compliance Certificate, or of the standards, rules and
regulations issued by the National Environmental Protection Council pursuant to this
Decree shall be punished the suspension or cancellation of his/its certificate and/or a
fine in an amount not to exceed fifty thousand pesos (P50,000.00) for every violation
thereof, at the discretion of the National Environmental Protection Council."
Section 4 of P.D. 1586 states that "No person, partnership or corporation shall
undertake or operate any such declared environmentally critical project or area without
first securing an Environmental Compliance Certificate issued by the President or his
duly authorized representative."
Suspension of ECCs
ECCs may be suspended for violation of Proponents to comply with ECC conditions. It
is noted that ECC suspension does not necessarily mean the Proponent is absolved of
its responsibility in implementing its approved Environmental Management Plan (EMP).
PD 1586 does not preclude the fact that DENR may require the Proponent to institute
environmental safeguards/measures to prevent further threat or actual damage to the
environment.
Authority to Impose Fines and Penalties
Imposition of fines and penalties is vested on the Directors of the EMB Central Office or
Regional Office upon persons or entities found violating provisions of P.D. 1586 and its
Implementing Rules and Regulations.
Cease and Desist Order
The EMB Director or the EMB-RD may issue a Cease and Desist Order (CDO) based
on violations under the Philippine EIS System to prevent grave or irreparable damage to
the environment which cannot be attributed to specific environmental laws (e.g. RA
8749, RA 9275, RA 6969, etc). Such CDO shall be effective immediately. An appeal or
any motion seeking to lift the CDO shall not stay its effectivity. However, the DENR shall
act on such appeal or motion within ten (10) working days from filing.
Publication of Firms
The EMB may publish the identities of firms that are in violation of P.D. 1586 and its
Implementing Rules and Regulations despite repeated Notices of Violation.
Scope of Violations – Violations of provisions of PD 1586 and DAO 2003-30 are

classified as follows:
Projects with or without ECCs which pose grave and/or irreparable danger to
environment, life and property;
Projects which are established and/or operating without an ECC: A project that has
commenced its implementation is deemed "operating without an ECC", whether or not it
is in actual operation. The phrase "operating without ECC" refers to all projects that
were implemented without ECC that should have been required by the P.D. 1586 IRR.
Operating with an ECC secured from agencies or entities other than DENR is also
considered "operating without an ECC". Projects operating without an ECC shall not be
issued EMB regional environmental permits by EMB-PCD/EQD until such projects have
complied with the PEISS in securing an ECC.
Projects violating ECC conditions and EMP Commitments and other procedural
requirements of the Philippine EIS System:
Violations in relation to ECC conditions are classified as minor and major offenses,
differentiated by schedule of fines based on seriousness and gravity of the offense:
MINOR Offenses (violations of administrative conditions in the ECC and the EIS

System procedures, rules and regulations that will not have direct significant impact on
the environment but can impede or delay compliance against other ECC conditions
and/or EMP commitments which the Proponent is required to comply or can
prevent/deter EMB from performing monitoring or audit functions on the Proponent's
environmental performance), such as: 1) non-submission or delay in submission of
reports/requirements; 2) transfer of ownership of the project/ECC without prior approval
from ECC-issuing authority; 3) delay or failure to initiate formation or implementation of
ECC conditions which do not have significant impacts on the environment, such as
formation of EU, MMT, EMF, EGF, enhancement measures and other
similar/equivalent requirements prior to the required deadline in the ECC; 4) non-
compliance with other administrative conditions in the ECC; 5) non-compliance with
administrative and technical procedural guidelines in the DAO 2003-30 and its Revised
Procedural Manual; and 6) Other offenses deemed "minor" at the discretion of the
EMB CO/RO Director.
MAJOR Offenses (violations of substantive conditions in the ECC and the EIS System
procedures, rules and regulations that will have significant impact on the environment
and which the Proponent is required to comply), such as: 1) non-implementation of
substantive conditions in the ECC on the EMP and EMoP and other related substantive
commitments in the EIA Report, including modifications during EIA Report Review, 2)
exceedance of project limits or area; 3) significant addition of project component or
product without prior DENR-EMB approval; 4) major change in project process or
technology resulting in unmitigated significant impacts not addressed by approved
EMP; 5) Other offenses deemed "major" at the discretion of the EMB CO/RO Director.
d.Misrepresentations, whether material or minor constitute violations on the theory that
full disclosure in the EIA Report is the key to the effective use of the EIS System as a
planning and management tool.
Assessment and Computation of Fines
Failure to pay a fine imposed by the Secretary, EMB Director or the RD constitutes an
offense separate from the original offense that brought about the imposition of the
original fine and may warrant the imposition of another fine, and/or the issuance of a
CDO.
For projects operating without an ECC: The sum of P50,000.00 is set as the
maximum amount of fine. The amount of fine can be appropriately reduced at the
discretion of the Secretary, the EMB Director, or the RD, considering the circumstances
of each case, i.e. impact of the violation on the environment. The project may be
subjected to penalty following the mechanics of reduction as shown in Table 2-2.
Table 2-2. Schedule of Penalty Reduction in case of "Operating without ECC"
PERCENT EQUIVALENT AMOUNT

CRITERIA REDUCTION IN IN PESO TO BE
PENALTY DEDUCTED
1. Timing of ECC Application
Proponent Applied for ECC

25 12,500
before issuance of NOV
2. Percentage Project Completion
Project is 25% complete 10 5,000
Project is > 25% but < 50%

5 2,500
complete
Project is >50% complete 0 0
3. Project Cost
Project < PhP 5.0 M 20 10,000
Project is >PhP 5.0M 10 5,000
4. Project Impact on the Environment
Project does not cause

adverse environmental 25 12,500
impacts
Note: A maximum of 80% reduction in penalty can only be imposed provided that the
project Proponent meets all of the above criteria.

In case of violation of ECC conditions, EMP, or EIS rules and regulations: The sum of
P50,000.00 is again set as the maximum amount of fine per violation. Violation of one
condition in the ECC is an offense separate and distinct from the violation of another
condition. It is possible that a respondent be subjected to a fine of more than P50,000.00 if
more than one ECC condition is violated. However, the amount of fine per violation may be
accordingly reduced, following the schedule of fines presented in Table 2-3.

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PROHIBITED ACTS | FINES AND PENALTIES | PRESIDENTIAL

DECREE 1586 ENVIRONMENTAL IMPACT STATEMENT (EIS)

Authority to Impose Fines and Penalties

Cease and Desist Order

Scope of Violations – Violations of provisions of PD 1586 and DAO 2003-30 are

MINOR Offenses (violations of administrative conditions in the ECC and the EIS

Assessment and Computation of Fines

PERCENT EQUIVALENT AMOUNT

1. Timing of ECC Application

Proponent Applied for ECC

2. Percentage Project Completion

Project is 25% complete 10 5,000

Project is > 25% but < 50%

Project is >50% complete 0 0

Project < PhP 5.0 M 20 10,000

Project is >PhP 5.0M 10 5,000

4. Project Impact on the Environment

Project does not cause

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