Begun and Held in Metro Manila, On Monday, The Twenty-Seventh Day of July, Two Thousand Nine

Republic of the Philippines
Congress of the Philippines

Metro Manila
Fourteenth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.
REPUBLIC ACT NO. 9729
AN ACT MAINSTREAMING CLIMATE CHANGE INTO GOVERNMENT POLICY FORMULATIONS, ESTABLISHING

THE FRAMEWORK STRATEGY AND PROGRAM ON CLIMATE CHANGE, CREATING FOR THIS PURPOSE THE
CLIMATE CHANGE COMMISSION, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Title. – This Act shall be known as the “Climate Change Act of 2009”.
Section 2. Declaration of Policy. – It is the policy of the State to afford full protection and the advancement of the right of
the people to a healthful ecology in accord with the rhythm and harmony of nature. In this light, the State has adopted the
Philippine Agenda 21 framework which espouses sustainable development, to fulfill human needs while maintaining the
quality of the natural environment for current and future generations.
Towards this end, the State adopts the principle of protecting the climate system for the benefit of humankind, on the
basis of climate justice or common but differentiated responsibilities and the Precautionary Principle to guide decision-
making in climate risk management. As a party to the United Nations Framework Convention on Climate Change, the
State adopts the ultimate objective of the Convention which is the stabilization of greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system which should be
achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food
production is not threatened and to enable economic development to proceed in a sustainable manner.1awphil As a party
to the Hyogo Framework for Action, the State likewise adopts the strategic goals in order to build national and local
resilience to climate change-related disasters.
Recognizing the vulnerability of the Philippine archipelago and its local communities, particularly the poor, women, and
children, to potential dangerous consequences of climate change such as rising seas, changing landscapes, increasing
frequency and/or severity of droughts, fires, floods and storms, climate-related illnesses and diseases, damage to
ecosystems, biodiversity loss that affect the country’s environment, culture, and economy, the State shall cooperate with
the global community in the resolution of climate change issues, including disaster risk reduction. It shall be the policy of
the State to enjoin the participation of national and local governments, businesses, nongovernment organizations, local
communities and the public to prevent and reduce the adverse impacts of climate change and, at the same time,
maximize the benefits of climate change. It shall also be the policy of the State to incorporate a gender-sensitive, pro-
children and pro-poor perspective in all climate change and renewable energy efforts, plans and programs. In view
thereof, the State shall strengthen, integrate, consolidate and institutionalize government initiatives to achieve
coordination in the implementation of plans and programs to address climate change in the context of sustainable
development.
Further recognizing that climate change and disaster risk reduction are closely interrelated and effective disaster risk
reduction will enhance climate change adaptive capacity, the State shall integrate disaster risk reduction into climate
change programs and initiatives.
Cognizant of the need to ensure that national and subnational government policies, plans, programs and projects are
founded upon sound environmental considerations and the principle of sustainable development, it is hereby declared the
policy of the State to systematically integrate the concept of climate change in various phases of policy formulation,
development plans, poverty reduction strategies and other development tools and techniques by all agencies and
instrumentalities of the government.
Section 3. Definition of Terms. – For purposes of this Act, the following shall have the corresponding meanings:
(a) “Adaptation” refers to the adjustment in natural or human systems in response to actual or expected climatic
stimuli or their effects, which moderates harm or exploits beneficial opportunities.
(b) “Adaptive capacity” refers to the ability of ecological, social or economic systems to adjust to climate change
including climate variability and extremes, to moderate or offset potential damages and to take advantage of
associated opportunities with changes in climate or to cope with the consequences thereof.
(c) “Anthropogenic causes” refer to causes resulting from human activities or produced by human beings.
(d) “Climate Change” refers to a change in climate that can be identified by changes in the mean and/or
variability of its properties and that persists for an extended period typically decades or longer, whether due to
natural variability or as a result of human activity.
(e) “Climate Variability” refers to the variations in the average state and in other statistics of the climate on all
temporal and spatial scales beyond that of individual weather events.
(f) “Climate Risk” refers to the product of climate and related hazards working over the vulnerability of human
and natural ecosystems.
(g) “Disaster” refers to a serious disruption of the functioning of a community or a society involving widespread
human, material, economic or environmental losses and impacts which exceed the ability of the affected
community or society to cope using its own resources.
(h) “Disaster risk reduction” refers to the concept and practice of reducing disaster risks through systematic
efforts to analyze and manage the causal factors of disasters, including through reduced exposure to hazards,
lessened vulnerability of people and property, wise management of land and the environment, and improved
preparedness for adverse events.
(i) “Gender mainstreaming” refers to the strategy for making women’s as well as men’s 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 Earth’s 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.
(m) “Mainstreaming” refers to the integration of policies and measures that address climate change into
development planning and sectoral decision-making.
(n) “Mitigation” in the context of climate change, refers to human intervention to address anthropogenic
emissions by sources and removals by sinks of all GHG, including ozone- depleting substances and their
substitutes.
(o) “Mitigation potential” shall refer to the scale of GHG reductions that could be made, relative to emission
baselines, for a given level of carbon price (expressed in cost per unit of carbon dioxide equivalent emissions
avoided or reduced).
(p) “Sea level rise” refers to an increase in sea level which may be influenced by factors like global warming
through expansion of sea water as the oceans warm and melting of ice over land and local factors such as land
subsidence.
(q) “Vulnerability” refers to the degree to which a system is susceptible to, or unable to cope with, adverse
effects of climate change, including climate variability and extremes. Vulnerability is a function of the character,
magnitude, and rate of climate change and variation to which a system is exposed, its sensitivity, and its adaptive
capacity.
Section 4. Creation of the Climate Change Commission. – There is hereby established a Climate Change Commission,
hereinafter referred to as the Commission.
The Commission shall be an independent and autonomous body and shall have the same status as that of a national
government agency. It shall be attached to the Office of the President.
The Commission shall be the sole policy-making body of the government which shall be tasked to coordinate, monitor and
evaluate the programs and action plans of the government relating to climate change pursuant to the provisions of this
Act.
The Commission shall be organized within sixty (60) days from the effectivity of this Act.
Section 5. Composition of the Commission. – The Commission shall be composed of the President of the Republic of the
Philippines who shall serve as the Chairperson, and three (3) Commissioners to be appointed by the President, one of
whom shall serve as the Vice Chairperson of the Commission.
The Commission shall have an advisory board composed of the following:
(a) Secretary of the Department of Agriculture;
(b) Secretary of the Department of Energy;
(c) Secretary of the Department of Environment and Natural Resources;
(d) Secretary of the Department of Education;
(e) Secretary of the Department of Foreign Affairs;
(f) Secretary of the Department of Health;
(g) Secretary of the Department of the Interior and Local Government;
(h) Secretary of the Department of National Defense, in his capacity as Chair of the National Disaster
Coordinating Council;
(i) Secretary of the Department of Public Works and Highways;
(j) Secretary of the Department of Science and Technology;
(k) Secretary of the Department of Social Welfare and Development;
(l) Secretary of the Department of Trade and Industry;
(m) Secretary of the Department of Transportation and Communications;
(n) Director-General of the National Economic and Development Authority, in his capacity as Chair of the
Philippine Council for Sustainable Development;
(o) Director-General of the National Security Council;
(p) Chairperson of the National Commission on the Role of Filipino Women;

(q) President of the League of Provinces;
(r) President of the League of Cities;
(s) President of the League of Municipalities;
(t) President of the Liga ng mga Barangay;
(u) Representative from the academe;
(v) Representative from the business sector; and
(w) Representative from nongovernmental organizations.
At least one (1) of the sectoral representatives shall come from the disaster risk reduction community.
The representatives shall be appointed by the President from a list of nominees submitted by their respective groups.
They shall serve for a term of six (6) years without reappointment unless their representation is withdrawn by the sector
they represent. Appointment to any vacancy shall be only for the unexpired term of the predecessor.
Only the ex officio members of the advisory board shall appoint a qualified representative who shall hold a rank of no less
than an Undersecretary.
Section 6. Meetings of the Commission. – The Commission shall meet once every three (3) months, or as often as may
be deemed necessary by the Chairperson. The Chairperson may likewise call upon other government agencies for the
proper implementation of this Act.
Section 7. Qualifications, Tenure, Compensation of Commissioners. – The Commissioners must be Filipino citizens,
residents of the Philippines, at least thirty (30) years of age at the time of appointment, with at least ten (10) years of
experience on climate change and of proven honesty and ntegrity. The Commissioners shall be experts in climate change
by virtue of their educational background, training and experience: Provided, That at least one (1) Commissioner shall be
female: Provided, further, That in no case shall the Commissioners come from the same sector: Provided, finally, That in
no case shall any of the Commissioners appoint representatives to act on their behalf.
The Commissioners shall hold office for a period of six (6) years, and may be subjected to reappointment: Provided, That
no person shall serve for more than two (2) consecutive terms: Provided, further, That in case of a vacancy, the new
appointee shall fully meet the qualifications of a Commissioner and shall hold office for the unexpired portion of the term
only: Provided, finally, That in no case shall a Commissioner be designated in a temporary or acting capacity.
The Vice Chairperson and the Commissioners shall have the rank and privileges of a Department Secretary and
Undersecretary, respectively. They shall be entitled to corresponding compensation and other emoluments and shall be
subject to the same disqualifications.
Section 8. Climate Change Office. – There is hereby created a Climate Change Office that shall assist the Commission. It
shall be headed by a Vice Chairperson of the Commission who shall act as the Executive Director of the Office. The
Commission shall have the authority to determine the number of staff and create corresponding positions necessary to
facilitate the proper implementation of this Act, subject to civil service laws, rules and regulations. The officers and
employees of the Commission shall be appointed by the Executive Director.
Section 9. Powers and Functions of the Commission. – The Commission shall have the following powers and functions:
(a) Ensure the mainstreaming of climate change, in synergy with disaster risk reduction, into the national, sectoral
and local development plans and programs;
(b) Coordinate and synchronize climate change programs of national government agencies;
(c) Formulate a Framework Strategy on Climate Change to serve as the basis for a program for climate change
planning, research and development, extension, and monitoring of activities on climate change;
(d) Exercise policy coordination to ensure the attainment of goals set in the framework strategy and program on
climate change;
(e) Recommend legislation, policies, strategies, programs on and appropriations for climate change adaptation
and mitigation and other related activities;
(f) Recommend key development investments in climate- sensitive sectors such as water resources, agriculture,
forestry, coastal and marine resources, health, and infrastructure to ensure the achievement of national
sustainable development goals;
(g) Create an enabling environment for the design of relevant and appropriate risk-sharing and 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;
(j) Coordinate and establish a close partnership with the National Disaster Coordinating Council in order to
increase efficiency and effectiveness in reducing the people’s vulnerability to climate-related disasters;
(k) In coordination with the Department of Foreign Affairs, represent the Philippines in the climate change
negotiations;
(l) Formulate and update guidelines for determining vulnerability to climate change impacts and adaptation
assessments and facilitate the provision of technical assistance for their implementation and monitoring;
(m) Coordinate with local government units (LGUs) and private entities to address vulnerability to climate change
impacts of regions, provinces, cities and municipalities;
(n) Facilitate capacity building for local adaptation planning, implementation and monitoring of climate change
initiatives in vulnerable communities and areas;
(o) Promote and provide technical and financial support to local research and development programs and projects
in vulnerable communities and areas; and
(p) Oversee the dissemination of information on climate change, local vulnerabilities and risks, relevant laws and
protocols and adaptation and mitigation measures.
Section 10. Panel of Technical Experts. – The Commission shall constitute a national panel of technical experts
consisting of practitioners in disciplines that are related to climate change, including disaster risk reduction.
The Panel shall provide technical advice to the Commission in climate science, technologies, and best practices for risk
assessment and enhancement of adaptive capacity of vulnerable human settlements to potential impacts of climate
change.
The Commission shall set the qualifications and compensation for the technical experts. It shall provide resources for the
operations and activities of the Panel.
Section 11. Framework Strategy and Program on Climate Change. – The Commission shall, within six (6) months from
the effectivity of this Act, formulate a Framework Strategy on Climate Change. The Framework shall serve as the basis for
a program for climate change planning, research and development, extension, and monitoring of activities to protect
vulnerable communities from the adverse effects of climate change.
The Framework shall be formulated based on climate change vulnerabilities, specific adaptation needs, and mitigation
potential, and in accordance with the international agreements.
The Framework shall be reviewed every three (3) years, or as may be deemed necessary.
Section 12. Components of the Framework Strategy and Program on Climate Change. – The Framework shall include,
but not limited to, the following components:
(a) National priorities;
(b) Impact, vulnerability and adaptation assessments;
(c) Policy formulation;
(d) Compliance with international commitments;
(e) Research and development;
(f) Database development and management;
(g) Academic programs, capability building and mainstreaming;
(h) Advocacy and information dissemination;
(i) Monitoring and evaluation; and
(j) Gender mainstreaming.
Section 13. National Climate Change Action Plan. – The Commission shall formulate a National Climate Change Action
Plan in accordance with the Framework within one (1) year after the formulation of the latter.
The National Climate Change Action Plan shall include, but not limited to, the following components:
(a) Assessment of the national impact of climate change;
(b) The identification of the most vulnerable communities/areas, including ecosystems to the impacts of climate
change, variability and extremes;
(c) The identification of differential impacts of climate change on men, women and children;
(d) The assessment and management of risk and vulnerability;
(e) The identification of GHG mitigation potentials; and
(f) The identification of options, prioritization of appropriate adaptation measures for joint projects of national and
local governments.
Section 14. Local Climate Change Action Plan. – The LGUs shall be the frontline agencies in the formulation, planning
and implementation of climate change action plans in their respective areas, consistent with the provisions of the Local
Government Code, the Framework, and the National Climate Change Action Plan.
Barangays shall be directly involved with municipal and city governments in prioritizing climate change issues and in
identifying and implementing best practices and other solutions. Municipal and city governments shall consider climate
change adaptation, as one of their regular functions. Provincial governments shall provide technical assistance,
enforcement and information management in support of municipal and city climate change action plans. Inter-local
government unit collaboration shall be maximized in the conduct of climate- related activities.
LGUs shall regularly update their respective action plans to reflect changing social, economic, and environmental
conditions and emerging issues. The LGUs shall furnish the Commission with copies of their action plans and all
subsequent amendments, modifications and revisions thereof, within one (1) month from their adoption. The LGUs shall
mobilize and allocate necessary personnel, resources and logistics to effectively implement their respective action plans.
The local chief executive shall appoint the person responsible for the formulation and implementation of the local action
plan.
It shall be the responsibility of the national government to extend technical and financial assistance to LGUs for the
accomplishment of their Local Climate Change Action Plans.
The LGU is hereby expressly authorized to appropriate and use the amount from its Internal Revenue Allotment
necessary to implement said local plan effectively, any provision in the Local Government Code to the contrary
notwithstanding.
Section 15. Role of Government Agencies. – To ensure the effective implementation of the framework strategy and
program on climate change, concerned agencies shall perform the following functions:
(a) The Department of Education (DepED) shall integrate climate change into the primary and secondary
education curricula and/or subjects, such as, but not limited to, science, biology, sibika, history, including
textbooks, primers and other educational materials, basic climate change principles and concepts;
(b) The Department of the Interior and Local Government (DILG) and Local Government Academy shall facilitate
the development and provision of a training program for LGUs in climate change. The training program shall
include socioeconomic, geophysical, policy, and other content necessary to address the prevailing and forecasted
conditions and risks of particular LGUs. It shall likewise focus on women and children, especially in the rural
areas, since they are the most vulnerable;
(c) The Department of Environment and Natural Resources (DENR) shall oversee the establishment and
maintenance of a climate change information management system and network, including on climate change
risks, activities and investments, in collaboration with other concerned national government agencies, institutions
and LGUs;
(d) The Department of Foreign Affairs (DFA) shall review international agreements related to climate change and
make the necessary recommendation for ratification and compliance by the government on matters pertaining
thereto;
(e) The Philippine Information Agency (PIA) shall disseminate information on climate change, local vulnerabilities
and risk, relevant laws and protocols and adaptation and mitigation measures; and
(f) Government financial institutions, shall, any provision in their respective charters to the contrary
notwithstanding, provide preferential financial packages for climate change- related projects. In consultation with
the Bangko Sentral ng Pilipinas (BSP), they shall, within thirty (30) days from the effectivity of this Act, issue and
promulgate the implementing guidelines therefor.
The Commission shall evaluate, recommend the approval of loans and monitor the use of said funds of LGUs.
Section 16. Coordination with Various Sectors. – In the development and implementation of the National Climate Change
Action Plan, and the local action plans, the Commission shall coordinate with the nongovernment organizations (NGOs),
civic organizations, academe, people’s organizations, the private and corporate sectors and other concerned stakeholder
groups.
Section 17. Authority to Receive Donations and/or Grants. – The Commission is hereby authorized to accept grants,
contributions, donations, endowments, bequests, or gifts in cash, or in kind from local and foreign sources in support of
the development and implementation of climate change programs and plans: Provided, That in case of donations from
foreign governments, acceptance thereof shall be subject to prior clearance and approval of the President of the
Philippines upon recommendation of the Secretary of Foreign Affairs: Provided, further, That such donations shall not be
used to fund personal services expenditures and other operating expenses of the Commission.
The proceeds shall be used to finance:
(a) Research, development, demonstration and promotion of technologies;

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

Speaker of the House of Representatives President of the Senate
This Act which is a consolidation of Senate Bill No. 2583 and House Bill No. 5982 was finally passed by the Senate and
the House of Representatives on August 25, 2009 and September 2, 2009, respectively.
Sgd. MARILYN B. BARUA-YAP

Sgd. EMMA LIRIO-REYES
Secretary General
Secretary of the Senate
House of Representatives
Approved: October 23, 2009
Sgd. GLORIA MACAPAGAL-ARROYO

President of the Philippines
CONGRESS OF THE PHILIPPINES
Metro Manila
Fifteenth Congress
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-fifth day of July, two thousand eleven.
REPUBLIC ACT NO. 10174
AN ACT ESTABLISHING THE PEOPLE'S SURVIVAL FUND TO PROVIDE LONG-TERM 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
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
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:
"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, climate-related illnesses and diseases, damage to ecosystems, biodiversity loss that affect the
country’s 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 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 contest of
sustainable development.
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."
Section 2. Section 3 of Republic Act No. 9729 is hereby amended to read as follows:
"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.
(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.
(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.
(k) ‘Global Warming’ refers to the increase in the average temperature of the Earth’s near-surface air and
oceans that is associated with the increased concentration of greenhouse gases in the atmosphere.
(l) ‘Greenhouse effect’ refers to the process by which the absorption of infrared radiation by the
atmosphere warms the Earth.
(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, including- ozone-depleting substances
and their substitutes.
(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).
(q) ‘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.
(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.
"SEC. 4. Creation of the Climate Change Commission. – There is hereby established a Climate Change
Commission, hereinafter referred to as the Commission.
Thu 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.
The Commission shall be organized within sixty (80) days from the effectivity of this Act."
Section 4. Section 5 of Republic Act No. 9729 is hereby amended to read as follows.
"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.
The Commission shall have an advisory board composed of the following:
(a) Secretary of the Department of Agriculture;
(b) Secretary of the Department of Budget and Management;
(c) Secretary of the Department of Energy;
(d) Secretary of the Department of Environment and Natural Resources;
(e) Secretary of the Department of Education;
(f) Secretary of the Department of Finance;
(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;

(j) Secretary of the Department of National Defense, in his capacity as Chair of the National Disaster Risk
Reduction and Management Council;
(k) Secretary of the Department of Public Works and Highways;
(l) Secretary of the Department of Science and Technology;
(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;
(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);
(q) Director-General of the National Security Council;
(r) Chairperson of the Philippine Commission on Women;
(s) Chairperson of the National Youth Commission;
(t) President of the Sangguniang Kabataan National Federation;
(u) President of the League of Provinces;
(v) President of the League of Cities;
(w) President of the League of Municipalities;
(x) President of the Liga ng mga Barangay;
(y) Representative from the academe;
(z) Representative from the business sector; and
(aa) Representative from nongovernmental organizations.
At least one (1) of the sectoral representatives shall come from the disaster risk reduction community.
The representatives shall be appointed by the President from a list of nominees submitted by their respective
groups 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.
Ex officio members of the advisory board may appoint their respective permanent alternate representatives who
shall have the rank of an Undersecretary."
"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.
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"
Section 6. Section 7 of Republic Act. No. 9729 is hereby amended to read as follows:
"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.
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.
The Vice Chairperson and the Commissioners shall have the rank and privileges of a Department Secretary and
Undersecretary, respectively. They shall be entitled to corresponding compensation and other emoluments and
shall be subject to the same disqualifications."
Section 7. Section 9 of Republic Act No. 9729 is hereby amended to read as follow;
"SEC. 9. Powers and Functions of the Commission. – The Commission shall have the following powers and
functions:
(a) Coordinate and synchronize climate change programs in consultation with national government
agencies and other stakeholders;
(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;
(c) Exercise policy coordination to ensure the attainment of goals sat in the strategic framework and
program on climate change;
(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;
(f) Create an enabling environment for the design of relevant and appropriate risk-sharing and risk-
transfer instruments;
(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;
(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 people’s
vulnerability to climate-related disasters;
(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;
(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;
(l) Coordinate with local government units (LGU’s) and private entities to address vulnerability to climate
change impacts of regions, provinces, cities and municipalities;
(m) Facilitate capacity building for local adaptation planning, implementation and monitoring of climate
change initiatives in vulnerable and marginalized communities and areas;
(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."
Section 8. Section 11 of Republic Act No. 9729 is hereby amended to road as follows:
"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.
The Framework shall be formulated based on climate change vulnerabilities, specific adaptation needs, and
mitigation potential, and in accordance with the international agreements.
The Framework shall be reviewed every three (3) years, or as may be deemed necessary. The review of the
Framework shall involve a participatory and interactive process."
"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;
(b) Impact, vulnerability and adaptation assessments;
(c) Policy formulation;
(d) Compliance with international commitments;
(e) Research and development;
(f) Database development and management;

(g) Academic programs, capability building and mainstreaming;
(h) Advocacy and information dissemination;
(i) Monitoring and evaluation; and
(j) Gender mainstreaming."
"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 capacity-building 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
(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;
(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 country’s 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."
"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, people’s organizations, the private and
corporate sectors and other concerned stakeholder groups."
"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:
(a) Research, development, demonstration and promotion of technologies;
(b) Conduct of assessment of vulnerabilities to climate change impacts, resource inventory, and
adaptation capability building;
(c) Advocacy, networking and communication activities in the conduct of information campaign; and
(d) Conduct of such other activities reasonably necessary to carry out the objectives of this Act, as may
be defined by the Commission."
Section 13. Insert and renumber Sections 18, 19, 20, 21, 22, 23, 24 and 25 in Republic Act No. 9729 to read as follows:
"SEC. 18. Creation of the People’s Survival Fund. – A People’s 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. 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.
The PSF may be augmented by donations, endowments, grants and contributions, which shall be exempt from
donor’s 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;
(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;
(e) Strengthening existing; and where needed, establish regional centers and information networks to
support climate change adaptation initiatives and projects;
(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."
"SEC. 21. The People’s Survival Fund Board. – There is hereby created a People’s 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) Director-General of the National Economic and Development Authority;
(e) Secretary of the Department of the Interior and Local Government;
(f) Chairperson of the Philippine Commission on Women;
(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;
(d) Identify additional sources for the fund;
(e) Issue final approval of projects for the use of the fund;
(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."
"SEC 23. Role of the Commission in the Utilization of the People’s 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.
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."
"SEC. 24. Prioritization of Fund Allocation. – The Commission shall develop criteria to prioritize use of the fund
based on, but not. limited to, the following:
(a) Level of risk and vulnerability to climate change;
(b) Participation of affected communities in the design of the project;
(c) Poverty reduction potential;
(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."
"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."
Section 14. The succeeding sections shall be renumbered accordingly.
Section 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.
Section 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.
Section 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,
(Sgd.) JUAN PONCE ENRILE (Sgd.) FELICIANO BELMONTE JR.
President of the Senate Speaker of the House of Representatives
the House of Representatives on June 6, 2012.
(Sgd.) EMMA LIRIO-REYES (Sgd.) MARILYN B. BARUA-YAP

Secretary of Senate Secretary General
Approved: AUG 16 2012
(Sgd.) BENIGNO S. AQUINO III


CONGRESS OF THE PHILIPPINES
Metro Manila
Fourteenth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.
REPUBLIC ACT No. 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.
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 "Philippine Disaster Risk Reduction and Management Act of 2010".
Section 2. Declaration of Policy. - It shall be the policy of the State to:
(a) Uphold the people's constitutional rights to life and property by addressing the root causes of vulnerabilities to
disasters, strengthening the country's 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 country's 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;
(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;
(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;
(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;
(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
government's 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, community-based organizations (CBOs), faith-based
organizations, people's 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.
(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.
(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.
(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.
(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.
(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.
(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; 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, geo-hazard 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 community-based 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 post-disaster 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 world's 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 environment's 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.
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.
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.
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.
The National Council's members shall be the following:
(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);
(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!);
(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);
(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);
(q) Chairman, Commission on Higher Education (CHED);
(r) Chief of Staff, Armed Forces of the Philippines (AFP);
(s) Chief, Philippine National Police (PNP);
(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);
(w) Chairperson, National Commission on the Role of Filipino Women;
(x) Chairperson, Housing and Urban Development Coordinating Council (HUDCC);
(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;
(ii) One (1) representative from the private sector; and
(jj) Administrator of the OCD.

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.
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:
(a) Develop a NDRRMF which shall provide for a comprehensive, all-hazards, multi-sectoral, 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;
(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;
(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;
(m) Formulate, harmonize, and translate into policies a national agenda for research and technology development
on disaster risk reduction and management;
(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;
(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 country's obligations with disaster management treaties to
which it IS a party and see to It that the country's 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 government's 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;
(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.
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.
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 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.
(a) Composition: The LDRRMC shall be composed of, but not limited to, the following:
(1) The Local Chief Executives, Chairperson;
(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;
(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;
(11) The Division Head/Superintendent of Schools of the DepED, member;
(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;
(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;
(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
(4) Convene the local council once every three (3) months or as necessary.
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.
(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:
(1) Design, program, and coordinate disaster risk reduction and management activities consistent with the
National Council's standards and guidelines;
(2) Facilitate and support risk assessments and contingency planning activities at the local level;
(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 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;
(10) Disseminate information and raise public awareness about those hazards. vulnerabilities and risks,
their nature, effects, early warning signs and counter-measures;
(11) Identify and implement cost-effective risk reduction measures/strategies;
(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;
(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 people's 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, 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.
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.
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;
(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.
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 President's declaration may warrant international
humanitarian assistance as deemed necessary.
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 member-agencies concerned as defined in this Act:
(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 people's organizations.
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;
(e) Selling of relief goods, equipment or other aid commodities which are intended for distribution to disaster
victims;
(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 issuance's which are inconsistent with or contrary to the provisions of this Act are
hereby amended or repealed accordingly.
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 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,
(Sgd.) PROSPERO C. NOGRALES (Sgd.) JUAN PONCE ENRILE

Speaker of the House of Representatives President of the Senate
This Act which is a consolidation of Senate Bill No. 3086 and House Bill No, 6985 was finally passed by the Senate and
the House of Representatives on February 1, 2010.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES

Secretary General Secretary of Senate
Approved: May 27, 2010
(Sgd.) GLORIA MACAPAGAL-ARROYO

Congress of the Philippines
Metro Manila
Fourteenth Congress
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand eight.
Republic Act No. 9513 December 16, 2008
AN ACT PROMOTING THE DEVELOPMENT, UTILIZATION AND COMMERCIALIZATION OF RENEWABLE ENERGY

RESOURCES AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
CHAPTER I
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
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
(d) Establish the necessary infrastructure and mechanism to carry out the mandates specified in this Act and
other existing laws.
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.
Section 4. Definition of Terms. - As used in this Act, the following terms are herein defined:
(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 naturally-occurring 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, run-of-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.
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.
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.
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 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
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.
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.
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;
(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 end-users
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
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
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.
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.
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 off-grid areas shall be exempted from the payment of the
universal charge provided for under Section 34 of Republic Act No. 9136.
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.
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.
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 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.
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 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.
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.
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.
(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 zero-rated 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.
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.
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.
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;
(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:
(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;
(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
(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;
(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;
(g) Any revenue generated from the utilization of the RETF; and
(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.
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;
(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;
(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;
(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;
(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
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.
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.
Section 35. Prohibited Acts. - The following acts shall be prohibited:

(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
(Sgd.) PROSPERO C. NOGRALES (Sgd.) MANNY VILLAR

Speaker of the House of President of the Senate
Representative
the House of Representative on October 8, 2008.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES
Secretary General Secretary of the Senate
House of Representative
Approved: DEC 16, 2008
(Sgd.) GLORIA MACAPAGAL-ARROYO


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Republic of the Philippines

Congress of the Philippines

REPUBLIC ACT NO. 9729

AN ACT MAINSTREAMING CLIMATE CHANGE INTO GOVERNMENT POLICY FORMULATIONS, ESTABLISHING

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;

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

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

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

(l) Secretary of the Department of Trade and Industry;

(m) Secretary of the Department of Transportation and Communications;

(o) Director-General of the National Security Council;

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

(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.

(a) National priorities;

(b) Impact, vulnerability and adaptation assessments;

(c) Policy formulation;

(d) Compliance with international commitments;

(e) Research and development;

(f) Database development and management;

(g) Academic programs, capability building and mainstreaming;

(h) Advocacy and information dissemination;

(i) Monitoring and evaluation; and

(j) Gender mainstreaming.

(a) Assessment of the national impact of climate change;

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

(e) The identification of GHG mitigation potentials; and

The proceeds shall be used to finance:

(a) Research, development, demonstration and promotion of technologies;

Sgd. PROSPERO C. NOGRALES Sgd. JUAN PONCE ENRILE

Sgd. MARILYN B. BARUA-YAP

Approved: October 23, 2009

Sgd. GLORIA MACAPAGAL-ARROYO

REPUBLIC ACT NO. 10174

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

(a) Secretary of the Department of Agriculture;

(b) Secretary of the Department of Budget and Management;

(c) Secretary of the Department of Energy;

(d) Secretary of the Department of Environment and Natural Resources;

(e) Secretary of the Department of Education;

(f) Secretary of the Department of Finance;

(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;

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

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

(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;

(q) Director-General of the National Security Council;

(r) Chairperson of the Philippine Commission on Women;

(s) Chairperson of the National Youth Commission;