The Philippine Environmental Assessment Policies1

Ms. Princess Alma B. Ani2

Senior Science Research Specialist
Socio-Economics Research Division-Philippine Council for Agriculture,
Aquatic and Natural Resources Research and Development (SERD-PCAARRD)

Introduction

Environmental Assessment (EA) refers to the process of systematic analysis, evaluation and
management of the potential environmental and social effects, short-term and long-term, of
proposed actions or projects. It is an administrative tool that integrates environmental
considerations in development initiatives to ensure that the proposed projects will have minimal
environmental impacts and be environmentally sound (ADB, 2003). When properly
implemented, it can serve as basis to improve project design and implementation through
measures that prevent, mitigate and compensate for adverse environmental impacts.
The increasing and growing economic activities that failed to adequately account for the
detrimental impacts of development activities to the environment led to the advent of
environmental impact assessment (EIA). EIA, which involves evaluating and predicting the
likely impacts of the projects on the environment, has an important role in resolving these
environmental problems through its ability to contribute to environmentally sound and
sustainable development. The concept was based on the Environmental Impact Assessment study
framework first introduced in the United States in 1969 through the National Environmental
Policy Act (NEPA). In 1992, Principle 17 of the Rio Declaration adopted EIA as a national
instrument for sustainable development which “shall be undertaken for proposed activities that
are likely to have a significant adverse impact on the environment and are subject to a decision
of competent national authority” (Tuyor et al., 2007). Since then, environmental assessment
process has become an essential component for any proposed project.

In the Philippines, environmental protection is recognized in the 1987 Constitution which

stipulates that “The State shall protect and advance the right of the people to a balance and
healthful ecology in accord with the rhythm and harmony of nature.” Anchored on the principles
of sustainable development, it is the State’s responsibility to ensure that environmental
protection is institutionalized and materialized through assessment systems and processes.
The Philippines’s policies that embody the protection to the environment against potential
deterioration and damage is institutionalized through the establishment of the Environmental
Impact Statement (EIS) System and the Environmental Impact Assessment (EIA). The country’s
EIS System is considered one of the most comprehensive environmental systems in the world. It

1
A policy paper submitted to the Food and Fertilizer Technology Center (FFTC) for the project titled “Asia-Pacific
Information Platform in Agricultural Policy”. Policy papers, as corollary outputs of the project, describe pertinent
Philippine laws and regulations on agriculture, aquatic and natural resources.
2
Philippine Point Person to the FFTC Project on Asia-Pacific Information Platform in Agricultural Policy and Senior
Science Research Specialist of the Socio-Economics Research Division-Philippine Council for Agriculture, Aquatic
and Natural Resources Research and Development (SERD-PCAARRD) of the Department of Science and
Technology (DOST), Los Baños, Laguna, Philippines; with the assistance of Carl Rookie O. Daquio, former Project
Staff, SERD-PCAARRD.
is even described as “extremely comprehensive” (Tan 2002 as cited by Tuyor et al., 2007) that
does not merely focus on regulation of industrial pollution but aims at protecting the entire
spectrum of the environment and the rights of the local communities. However, the
environmental assessment in the country is project-based.
This paper provides an overview of the policies that established the environmental
assessment in the Philippines, the challenges and issues to implement these policies, and some
policy implications including the recent policy initiatives of the government on EIS.

Evolution of the Philippine environmental assessment policies

This section discusses the evolution and development of the environmental assessment policies
in the Philippines. These policies provide a comprehensive legal and procedural framework
governing the conduct of EA in the country for projects that are likely to have significant
environmental impacts, directly or indirectly, to human welfare and ecological and
environmental integrity.

A. The Philippine environmental policy

Environmental assessment in the Philippines was first conceived in 1977 with the issuance of the
Presidential Decree (PD) 1151, otherwise known as the Philippine Environmental Policy. PD
1151 was established to address the urgent need to formulate an intensive and integrated program
to protect the entire spectrum of the environment. It stipulates the requirement for an
environmental impact assessments and statements to uphold the State’s policy to (1) create,
develop, maintain and improve conditions under which man and nature can live in harmony with
each other; (2) fulfil the social, economic and other requirements of present and future
generations; and (3) insure the attainment of an environmental quality that is conducive to a life
of dignity and well-being. Clearly, PD 1511 indicated the national intent to support an
intergenerational responsibility and achieve sustainable development through environmental
assessment laws.
PD 1511 encourages the use of all practicable means, with considerations of other national
laws, to exploit the environment without degrading it or endangering human life, health and
safety or creating adverse conditions for agriculture, commerce and industry. Moreover, the law
provides importance to the preservation of historic and cultural aspects of the Philippine
heritage; attainment of rational and orderly balance between population and its resource use; and
improvement in the utilization of renewable and non-renewable resources.
The law mandates all national government agencies and instrumentalities, including
government-owned and controlled corporations (GOCCs) as well as private corporations, firms
and entities to prepare and file EIS for any project or activity that may significantly affect the
quality of the environment. The EIS shall provide detailed statement on:

a. the environmental impact of the proposed action, project or undertaking;

b. any adverse environmental effect which cannot be avoided should the proposal be
implemented;
c. alternative to the proposed action;
d. a determination that the short-term uses of the resources of the environment are consistent
with the maintenance and enhancement of the long-term productivity of the same; and

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 e. whenever a proposal involves the use of depletable or non-renewable resources, a finding
must be made that such use and commitment are warranted.
As indicated in the Letter of Instruction (LOI) No. 422, an Inter-Agency Committee
composed of various government departments and agencies, enumerated as follows, and led by
the Department of Natural Resources (now Department of Environment and Natural Resources)
is directed to form, implement and monitor policies and programs to carry out the provisions of
PD 1511.

1. Department of Natural Resources

2. Department of Agriculture
3. Department of Health
4. Department of Local Government and Community Development
5. Department of Public Works, Transportation and Communications
6. Department of Education and Culture
7. National Economic and Development Authority
8. Energy Development Board
9. National Pollution Control Commission
10. Philippine Atomic Energy Commission
11. Human Settlements Commission
12. Laguna Lake Development Authority
13. Philippine Council for Agricultural and Resources Research (now Philippine Council for
Agriculture, Aquatic and Natural Resources Research and Development)
14. National Housing Authority
15. National Irrigation Administration
16. University of the Philippines Natural Science Research Center
17. Philippine Coast Guard
18. Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA)

PD 1511 is a landmark law that establishes the foundation of the precautionary principle of
environmental policies in the country by requiring submission of an environmental impact
statement on projects and activities that may adversely affect the environment. It further
embodies and upholds the State’s recognition, as stipulated in the 1987 Constitution, of the right
of the people for a healthful environment.

B. The Philippine EIS system

PD 1586 or better known as the law Establishing an Environmental Impact Statement System
Including Other Environmental Management Related Measures and for Other Purposes, signed
on June 11, 1978, strengthened the EIS required under PD 1511 by formalizing the establishment
of the Philippine Environmental Impact Statement (EIS) System. It was established on the basis
of the regulatory requirements of the Environmental Impact Statement and Assessment instituted
for environmental protection.
Under Section 4 of PD 1586, the President is empowered to declare certain projects or areas,
by his own initiative or upon the recommendation of the National Environmental Protection

3
Council3, as “environmentally critical” and prohibits the implementation or operation of these
projects without first securing an Environmental Compliance Certificate (ECC)4. Clearly, the law
stipulated ECC as a requirement to conduct environmentally critical projects (ECPs)5 or operate
in environmentally critical areas (ECAs)6. On the other hand, for environmentally non-critical
projects, EIS and ECC are not required, however, they may be required to provide additional
environmental safeguards.
As a regulatory policy, penalty clause for violating the rules and regulations of PD 1586 is
stipulated. Violations against the rules and regulations issued by the NEPC and non-compliance
of the terms and conditions in the issuance of the ECC or of the standards shall be punished
through suspension or cancellation of ECC and/or a fine in an amount of not exceeding Fifty
Thousand Pesos (Php 50,000.00). The amount that will be generated from the penalties shall be
automatically appropriated into an Environment Revolving Fund.

1. Environmentally critical projects and areas

With PD 1586 declaring certain projects and areas as environmentally critical, Presidential
Proclamation (PP) 2146 or the policy “Proclaiming Certain Areas and Types of Projects as
Environmentally Critical and Within the Scope of the Environmental Impact Statement System
Established Under PD 1586” was issued on December 14, 1981. PP 2146 identified the ECPs,
broadly categorized into: (1) heavy industries; (2) resource extractive industries; and (3)
infrastructure projects, and ECAs (Table 1). In addition, PP 803 was signed on June 6, 1996
which identified golf course projects as environmentally critical.

3
The National Environmental Protection Council (NEPC) was created through Presidential Decree 1121 on April 18,
1977 and was under the supervision and control of the Office of the President. Among others, the Council was tasked
to rationalize the functions of government agencies assigned to environmental protection, formulate policies and
issue guidelines on environmental quality standards and EIAs, recommend legislations or amendments to existing
policies related to environment status in the country, review EIAs and monitor the alignment of development projects
and initiatives with government’s environmental protection priorities.

4
Environmental Compliance Certificate (ECC) refers to the document issued the by the Department of Environment
and Natural Resources or the Environmental Management Bureau (EMB) after a positive review of an ECC
application, certifying that based on the representations of the proponent, the proposed project or undertaking will not
cause significant negative environmental impact. The ECC also certifies that the proponent has complied with all the
requirements of the EIS System and has committed to implement its approved Environmental Management
Plan. The ECC contains specific measures and conditions that the project proponent has to undertake before and
during the operation of a project, and in some cases, during the project’s abandonment phase to mitigate identified
environmental impacts. The issuance of an ECC does not exempt a project proponent from securing related permits
(such as sanitary, land use conversion, water and building) from concerned government agencies.
5
Environmentally Critical Projects (ECPs) are projects or programs that have high potential for significant negative
environmental impact.
6
Environmentally Critical Areas (ECAs) are delineated as environmentally sensitive areas such that significant
environmental impacts are expected if certain types of proposed projects or programs are located, developed or,
implemented in them.

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Table 1. Environmentally critical projects and areas under Presidential Proclamation 2146.

CRITICAL AREAS CRITICAL PROJECTS

Heavy industries Resource Infrastructure
extractive projects
Industries
1. Non-ferrous 1. Major mining 1. Major dams 1. All areas declared by law as
metal and quarrying 2. Major power national parks, watershed
industries projects plants (fossil- reserves, wildlife preserves and
2. Iron and steel 2. Forestry fueled, nuclear sanctuaries;
mills projects fueled, 2. Areas set aside as aesthetic
3. Petroleum and a. Logging hydroelectric or potential tourist spots;
petro-chemical b. Major wood geothermal) 3. Areas which constitute the
industries processing 3. Major habitat for any endangered or
including oil projects reclamation threatened species of indigenous
and gas c. Introduction projects Philippine Wildlife (flora and
4. Smelting plants of fauna 4. Major roads and fauna);
(exotic- bridges. 4. Areas of unique historic,
animals) in archaeological , or scientific
public/ interests;
private 5. Areas which are traditionally
forests occupied by cultural communities
d. Forest or tribes;
occupancy 6. Areas with critical slopes;
e. Extraction 7. Areas classified as prime
of mangrove agricultural lands;
products 8. Recharged areas of aquifers;
f. Grazing 9. Water bodies characterized by
3. Fishery one or any combination of the
Projects following conditions;
a. Dikes for a. tapped for domestic purposes;
fishpond b. within the controlled and/or
development protected areas declared by
projects appropriate authorities;
c. which support wildlife and
fishery activities.
10. Mangrove areas characterized
by one or any combination or the
following conditions:
a. with primary pristine and
dense young growth;
b. adjoining mouth of major river
systems;
c. near or adjacent to traditional
productive fry or fishing
grounds;
d. which act as natural buffers
against shore erosion, strong
winds and storm floods;
e. on which people are
dependent for their livelihood.
11. Coral reef characterized by one
or any combination of the
following conditions:
a. with 50% and above live
coralline cover;
b. Spawning and nursery
grounds for fish;
c. Which act as natural
breakwater of coastlines

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2. Institutional framework and general procedure

The Department of Environment and Natural Resources (DENR) is tasked to administer the EIS
System through the Environmental Management Bureau (EMB) and its regional offices (ROs).
The DENR-EMB central office provides not only policy direction, oversight and overall
guidance on EIA concerns, but also reviews and processes ECPs. On the other hand, the DENR-
EMB ROs review and approve projects considered to be located in ECAs, as well as projects
outside the EIS system purview.
Environmentally critical projects require the completion of an Environment Impact
Assessment (EIA) and the submission of an EIS report7 while projects in ECAs are subjected to
Initial Environmental Examinations (IEE)8. DENR determines whether a proposal is an ECP or a
project to be implemented in an ECA, if either or both of these conditions apply, the proposal is
required to secure an ECC. Otherwise, DENR-EMB or the ROs can issue a Certificate of Non-
Coverage (CNC)9 certifying that the project will not significantly affect the quality of the
environment.
Likewise, LGU also plays a critical role in ensuring that all development projects in their
jurisdiction that are classified as ECPs or located in ECAs are subjected to the EIA review
process. They are also responsible in facilitating community participation through public
outreach or consultation.

3. IES Implementing Rules and Regulations

The implementing rules and regulations (IRR) of PD 1586 are provided in five issuances (1979-
1984; 1984-1992; 1992-1996; 1996-2003; and 2003-present) which are all geared at
rationalizing, streamlining and simplifying the system. Among these policies, the Department of
Environment and Natural Resources Administrative Orders (DAO) No. 21, series of 1992, No.
37, series of 1996 and No. 30, series of 2003 are the most relevant and comprehensive legal
pronouncements of the EIS system.

a. DAO No. 21, series of 1992 (DAO 92-21)

The DAO 21, s. 1992 provides for the comprehensive administrative regulation of EIS which
lodged the issuance of the ECC for ECAs to the DENR Regional Offices. In order to effect
projects that are beneficial and acceptable to majority of the stakeholders and to a wider
community, one of the key objectives of the DAO 92-21 is to involve the stakeholders in
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Through DENR AO 2000-05, the required sections or outline of the EIS document include: EIS summary, project
description, summary of scoping agreements, baseline environmental conditions, impact assessment and analysis,
environmental risk assessment, environmental management program/plan, supporting documents, proposal for
environmental monitoring and guarantee funds, and accountability statement.
8
It contains a brief project description, expected impacts, and measures to be undertaken to control, manage or
minimize impacts on the environment.
9
Certificate of Non-Coverage is a certification issued by the EMB certifying that, based on the submitted project
description, the project is not covered by the EIS System and is not required to secure an ECC.

6
dialogues and exchanges of views, information and concerns. The consultations shall serve as
venue to determine social acceptability of projects and bases for the possible reforms in the EIA
System.

b. DAO No. 37, series of 1996 (DAO 96-37)

The DAO 37, series of 1996 provided for the strengthening of the implementation of the
Environmental Impact Statement (EIS) System established under PD 1586 and promulgated
revisions on the DAO 92-21. The underlying principle of the DAO 96-37 is to uphold the
balance between socioeconomic growth and environmental protection. As an integral part of the
EIS System, the AO mandates for public consultations and participation through the
institutionalization of the Multipartite Monitoring Team System (MMTS)10. It also embodies
social acceptability and other environmental safeguards.
DAO 96-37 adopts the ECPs and ECAs identified in PP 2146. It also identifies projects and
undertakings not covered by the EIS System. The noted innovations of the AO included
scoping11 which considers full public participation, environmental risk assessment, carrying or
assimilative capacity of the environment, the presumption of public risk and accountability
statements of proponents and preparers, DENR and stakeholders (Ipat Luna as cited by the
Interface Development Interventions, Inc., no date). Further, the AO provides guidelines on the
contents of the EIS which include among others baseline environmental conditions,
environmental risk assessment, environmental management plan, proposal for monitoring and
evaluation, results of the public consultation and social acceptability and accountability
statements.

c. DAO No. 30, series of 2003 (DAO 03-30)

The DAO 30, series of 2003, was issued in pursuant to the Administrative Order 42 of former
President Gloria Macapagal-Arroyo which intended to rationalize the implementation of the
Philippines EIS System. DAO 03-30 which superseded DAO 96-37, was established to
streamline the implementation of the EIS System in the country to make it a more effective
planning and management tool.
Under DAO 03-30, the scope of the EIS System is based on two factors: (1) the nature of the
project and its potential to cause significant negative environmental impacts; and (2) the
sensitivity or vulnerability of environmental resources in the project area. Similar to its
predecessor (DAO 96-37), salient provisions of DAO 03-30 include among others mandates for
scoping, public participation, inclusion of social acceptability in the assessment, environmental
carrying capacity analysis and environmental risk assessment. It further classifies the projects
and areas to be covered by the EIS System into four categories:

10
Multipartite Monitoring Team (MMT) is a multi-sectoral team convened for the primary purpose of monitoring
compliance by the proponent with the ECC, the EMP and applicable laws, rules and regulations.
11
Scoping is defined as the stage in the EIS System where information and assessment requirements are
established to provide the proponent with the scope of work for the EIS.

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 1. Category A. Environmentally Critical Projects (ECPs) with significant potential to cause
negative environmental impacts;
2. Category B. Projects that are not categorized as ECPs, but which may cause negative
environmental impacts because they are located in Environmentally Critical Areas (ECA’s);
3. Category C. Projects intended to directly enhance environmental quality or address existing
environmental problems not falling under Category A or B.
4. Category D. Projects unlikely to cause adverse environmental impacts.

4. EIS procedural manuals

The procedural manuals serve as primary reference to clarify the steps and procedures required
to implement the IES System in the country. They are designed to be used as reference materials
for DENR staff or personnel, project proponents, EIA preparers and practitioners, environmental
units of government agencies, local government officials, non-governmental or people’s
organization, and other stakeholders involved in the implementation of the Philippine EIS
System. The manuals focus on the processes rather than the technical aspects of the EIA.
Villaluz (2003) presented a summary of the salient contents of the procedural manuals for the
EIS System. The procedural manual issued in 1992 discussed the step-by-step procedure in the
preparation and review of Environmental Impact Statements. Among others, the manual
contained guidelines for the following:

1. the form and content of the documentation requirements;

2. the conduct of consultation to show proof of social acceptability;
3. the composition of the external EIA Review Committee (EIARC)12;
4. the allocations in an Environmental Guarantee Fund (EGF); and
5. the creation of Multipartite Monitoring Team (MMT).

The second edition of the manual provided a detailed discussion of the guidelines in the conduct
of the following:
1. scoping which include the technical definition of ECPs and ECAs and those under
categories C and D of projects and areas;
2. the procedural and substantive review;
3. the Environmental Risk Assessment;
4. the Environmental Management Plans (EMP);13
5. public hearings and consultation; and
6. penalties and sanctions for violating requirements of the EIS system.

Issues in implementing EIS

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The EIARC is composed of technically trained professionals in the natural, physical and social sciences. It meets
within 10 working days after submission of the EIS and completes its report and recommendation for an ECC within
an additional five days. Further, EIARC can hold meetings with the proponent, conduct site visits, technical tests and
consultations with the stakeholders to ensure a thorough and substantive review of the EIS.
13
Environmental Management Plans (EMP) defines the scope of compliance reporting, institutional and financial
mechanisms to ensure that mitigating and monitoring measures will be instituted and implemented by the project
proponent.

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The implementation of the Philippine EIS System has been confronted with various issues and
challenges. The following are the key issues that were highlighted in several reports (Tuyor et
al., 2007, Villaluz, 2003 and Interface Development Interventions, Inc., no date):

1. Loose specification of projects to be covered by the EIS. While the law provides the list of
projects and areas to be subjected under EIS, the lack of delineation in ECAs poses
confusions to proponents or even implementers in the DENR.
2. Incongruities/inconsistencies of the IRR. DAO 03-30 withers down the provisions of DAO
96-37 on public participation and social acceptability. Under DAO 03-30, public hearing is
limited to ECPs only or “unless otherwise determined by EMB” which means that EMB
has the discretion to decide on the conduct of this activity. It should be pointed out that
achieving social acceptability requires taking into consideration the views, opinion and
circumstances of as well as information from the stakeholders which can be addressed
through adequate and appropriate public consultations and hearings. However, the
vagueness of the operational definition of social acceptability resulted to confusions and
uncertainty of the outcome of EIS.
3. Project-based nature of environmental assessment rather than holistic that looks at the
environmental impacts and dynamics of mix of projects.
4. More attention is paid on the procedural and regulatory/bureaucratic procedures rather than
on the technical aspects, resulting in generally poor quality environmental assessment
characterized by voluminous reports and lack of focus and depth of analysis on critical
issues and impacts.
5. Overlap with other laws such as the Republic Act (RA) 7942 or the “Philippine Mining Act
of 1995”, RA 8371 or the “Indigenous Peoples Rights Act of 1997”, RA 8749 or the
“Philippine Clean Air Act of 1999”, RA 9275 or the “Philippine Clean Water Act”, and
other departmental orders and functions of the Department of Agriculture (DA), the
Department of Agrarian Reform (DAR) and local government units (LGUs). Jurisdictional
conflicts have caused confusion among project proponents which are usually resolved
through court rulings. The overlapping of policies also resulted to processes that are more
circuitous, time-consuming and ineffective.
6. Limited participation of the LGUs. The centralized administration of environmental
assessment policies vested the authority and responsibilities to the DENR which do not
have the enough human resources to perform the very rigid requirement of EIA. It should
be noted that environmental projects and undertakings are fundamentally local in scope.
7. Limited capabilities of the government to perform a complex monitoring system. The
monitoring protocols under EIS are very complex yet human resources and other resources
such as equipment and laboratories as well as data collection and storage need
strengthening.

Conclusion and policy implications

Environmental assessment has been globally regarded as a crucial tool in achieving sustainable
development. The Philippine EIS System provides the framework and mechanism to pursue the
country’s environmental policies and goals. As part of the EIS System, EIA has become an
important process to determine the potential impacts of projects on the environment and the
communities involve. However, several issues and challenges have been observed which

9
included processes that are rigorous and complex yet do not provide in-depth analysis on critical
environmental issues and impacts, overlapping and conflicting implementation strategies
between and among interrelated agencies, limited participation of the LGUs that are the key units
in local communities and lack of human resources to implement IES aggravated by the limited
trainings to improve capabilities and poor facilities for environmental analysis. Hence, there is
still a need to improve the quality of environmental assessment in the country in order to
maximize its potential as basis for an informed decision-making and in preventing and mitigating
negative impacts to the environment. Further, the EIS policies as well as rules and regulations
should be revisited and amended to be able to respond to the demands of the changing times and
be relevant with the advent of climate change and related policies on risk reduction management.
Continuing effort to streamline and improve the EIS System in the country are being made
through the following legislations, both at the Lower and Upper Houses of the Philippine
Congress:

1. House Bill No. 3637 or the Act Enhancing the Philippine Environmental Impact
Assessment System, Strengthen Public Participation Therein, and for Related Purposes.
The proposed law seeks to consolidate and put the IES system into a singular legislative
framework, provides for penalties and remedies for violations and non-compliance, create
an independent national environmental protection body, engage local government units and
strengthen public participation and social acceptability.

2. Senate Bill No. 684 or the Act to Enhance the Philippine Environmental Impact
Assessment (EIA) System, to Strengthen Public Participation Therein, and for Related
Purposes. Among the salient features of this proposed policy include the institutionalization
of a Programmatic EIA System, mainstreaming of EIA in National Policy Formulation,
strengthening of public participation and social acceptability and the creation of the
Environmental Protection Commission.

References

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developing countries. The Economics and Trade Branch. United Nations Environment
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Workshop Proceedings. EIA in the Philippines, Roads Taken, Lessons Learned: A Forum. World
Bank Conference Room, Taipan Place, Emerald St. Pasig City, February 11, 2005. Retrieved
in April 2016, from
http://www.gefcoral.org/Portals/53/downloads/ebm/day5_refs/Workshop%20Proceedings-
EIA%20in%20the%20Philippines-Roads%20Taken-Lessons%20Learned.pdf

Date submitted: May 6, 2016

Reviewed, edited and uploaded: May 10, 2016

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