IMPLEMENTING RULES AND REGULATIONS
DENR-PEZA MEMORANDUM OF AGREEMENT (MOA)
This Implementing Rules and Regulations (IRR) prescribe the
procedures and guidelines for the operationalization of the Memorandum
of Agreement (MOA) executed by and between the Department of Environment
and Natural Resources (DENR) and the Philippine Economic Zone Authority
(PEZA) which was signed by both parties on 25 August 1999. All concerned
offices of the DENR and PEZA shall be guided by this IRR, and abide
by the following:
Rule 1. Delineation of Applicability
This IRR shall apply to all applications for Environmental
Compliance Certificate (ECC), compliance monitoring of ECC conditions
and related DENR permits / clearances required of prospective and existing
2. Basic Policy and Objectives
1. BASIC POLICY
The basic policy governing the Memorandum of Agreement (MOA)
between the DENR and PEZA and the formulation of this IRR is to ensure
an integrated and simplified implementation of environmental laws, rules
and regulations, resource conservation, compliance monitoring and development
controls within the ecozones that are subject to the supervision of
Section 2. POLICY OBJECTIVES
A. To streamline the processing of ECC applications and to
facilitate issuance of the ECC for non-ECP projects within the PEZA
To coordinate the conduct of monitoring activities on the Proponents’
compliance with ECC conditions and other pertinent DENR Rules and Regulations.
To encourage prospective industries to locate in geographic areas which
are environmentally and socially suitable to their activities for easier
environmental management and promote the adoption of the DENR’s
Programmatic Compliance Policy; and
D. To strengthen PEZA’s capability in environmental management
Rule 3. Definition of Terms
any of the following words and terms are used herein, they shall have
the meaning ascribed in this section:
A. Certificate of Non-Coverage (CNC) – the document
issued by the Environmental Management Bureau (EMB) to Proponents whose
activities are not covered by the Philippine EIS System.
B. Co-located Projects – projects, or series
of similar projects or projects subdivided to several phases and / or
stages by the same proponent, located in contiguous areas.
C. Compliance Monitoring – activities, usually
inspection, sampling, or other means of evaluation, designed to gauge
the level of compliance with conditions stipulated in the ECC and permits
issued by other environmental statutory authorities.
D. Ecozones or Special Economic Zones – selected
areas with highly developed or which have the potential to be developed
into agro-industrial, industrial, tourist, recreational, commercial,
banking, investment and financial centers, the boundaries of which are
fixed or delimited by Presidential Proclamations. An Ecozone may contain
any or all of the following: industrial estates (IEs), export processing
zones (EPZs), free trade zones and tourist / recreational centers.
E. Environmental Compliance Certificate (ECC) –
the document issued by the DENR Secretary or the EMB Regional Director
certifying that based on the representations of the proponent and the
preparers, as reviewed and validated by the EIARC, the proposed project
or undertaking will not cause a significant negative environmental impact;
that the proponent has complied with all the requirements of the EIS
System and that the proponent is committed to implement its approved
Environmental Management Plan in the Environmental Impact Statement
or mitigation measures in the Initial Environmental Examination.
F. Environmentally Critical Project (ECP) - a project
that has high potential for significant negative environmental impact
and is listed as such under Pres. Proc. No. 2146, Series of 1981 and
Proc. No. 803, Series of 1996, as well as other projects which the President
may proclaim as environmentally critical in accordance with Section
4 of P.D. 1586.
G. Environmental Impacts – the probable effects
or consequences of proposed projects or undertakings on the physical,
biological and socio-economic environment that can be direct or indirect,
cumulative and positive or negative.
H. Environmental Impact Assessment (EIA) – the
process of predicting the likely environmental consequences of implementing
project or program activities and determination of applicable mitigating
I. Environmental Impact Statement / Study (EIS) –
the documentation of studies on the environmental impacts of a project
or program including the discussions on direct and indirect consequences
upon human welfare and ecological and environmental integrity. The EIS
may vary in its specific application to differing projects and programs,
but shall contain in every case all the relevant information and details
about the project to enable the DENR and other concerned parties to
make judicious decisions regarding the carrying capacity of certain
areas and systems to support projects or programs.
J. Environmental Impact Statement Programmatic Compliance (EISPC)
– the entire EIS system as it applies to programmatic compliance.
K. Environmental Impact Statement (EIS) System –
the entire process of organization, administration and procedure institutionalized
for the purpose of assessing the significance of the effects of physical
developments on the quality of the environment.
L. Environmental Management Bureau (EMB) – the
bureau under the DENR which implements the EIA System.
M. Environmental Management Plan / Program (EMP) –
a section in the EIS that details the prevention, mitigation, compensation,
contingency and monitoring measures to enhance positive impacts and
minimize negative impacts of a proposed project or undertaking. For
operating projects the EMP can also be derived from an EMS.
N. Environmental Management Systems (EMS) – the
part of the overall management systems of a project or an organization
that includes organizational structure, planning activities, responsibilities,
practices, procedures, processes and resources for developing, implementing
achieving, reviewing and maintaining improved overall environmental
O. Environmental Monitoring Fund (EMF) – a fund
that a proponent shall set-up after an ECC is issued for its project
or undertaking, to be used to support the activities of the multi-partite
monitoring team. It shall be immediately accessible and easily disbursable.
P. Environmental Performance – adherence to sound
operating practices which effectively prevent or minimize impacts to
environment resulting to, among others, compliance (and beyond compliance)
to environmental standards.
Q. Environmental Performance Report and Management Plan (EPRMP)
– documentation of the actual cumulative environmental impacts
and effectiveness of current measures for single projects that are operating
R. Expansion of Ecozones – increase land area
(contiguous) for development, which may involve improvement and / or
establishment of additional roads and bridges, drainage systems, utilities
(power, water supply, wastewater treatment plant and other facilities).
S. Expansion of Locators – involves increase
in production capacity with or without process change, installation
of additional utilities, and increase in land area (contiguous) for
construction of additional facilities.
T. Geographical Information Systems (GIS) – are
essentially computerized graphical overlays and interacting data files.
If environmental features are "mapped" systematically, information
acquired on specific projects can be combined, and the GIS database
becomes more detailed over time.
U. Initial Environmental Examination (IEE) –
the document required of proponents describing the environmental impact
of, and mitigation and enhancement measures for, non critical projects
or undertakings located in an ECA. The IEE replaces the Project Description
required under DAO 21, series of 1992.
V. Initial Environmental Examination (IEE) Checklist
– a short and simplified checklist version of an IEE Report, prescribed
by the DENR, to be filled up by proponents to describe the project's
environmental impact and corresponding mitigation and enhancement measures
for non critical projects located in an ECA. The DENR prescribes appropriate
corresponding IEE Checklists for different projects with minimal and
W. Locator Firm – an industrial facility that
locates or is sited within the geographic boundaries of an economic
X. Multipartite Monitoring Team (MMT) – 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.
Y. Philippine Economic Zone Authority (PEZA) –
created under Republic Act. No. 7916 otherwise known as the Special
Economic Zone Act of 1995. PEZA manages or supervises the operation
of ecozones throughout the country. It is also responsible for the grant
of fiscal incentives available under the Act to investors locating inside
ecozones as well as to developers / operators of these ecozones.
Z. Program – activities and actions of an undertaking
consisting of a series of similar projects or enterprises, or a project
subdivided into several phases and/or stages of determinable duration;
whether situated in a contiguous area or geographically dispersed, which
may have significant impact on the environment.
AA. Programmatic Compliance – refers to activities
undertaken by a proponent to comply with the policies and procedures
established by DENR Administrative Order 2000-05 to secure an ECC for
its co-located projects or program.
BB. Programmatic Environmental Compliance Certificate
– the document issued by the Secretary of the Department of Environmental
and Natural Resources or his duly authorized representative certifying
that the proposed co-located projects or program under consideration
will not bring about unacceptable environmental impacts and that the
proponent has complied with the requirements of the Environmental Impact
Statement (EIS) System.
CC. Programmatic Environmental Impact Statement –
a documentation of comprehensive studies on environmental baseline conditions
of a contiguous area. It also includes an assessment of the carrying
capacity of the area to absorb impacts from co-located projects such
as those in industrial estates or economic zones (ecozones).
DD. Programmatic Environmental Performance Report and Management
Plan (PEPRMP) – documentation of actual cumulative environmental
impacts of co-located projects with proposals for expansion. The PEPRMP
should also describe the effectiveness of current environmental mitigation
measures and plans for performance improvement.
EE. Project – refers to activities and actions
of an undertaking regardless of scale or magnitude, which may have significant
impact on the environment.
FF. Proponent – PEZA Ecozone developers and locator
4. Institutional Arrangements
The Environmental Impact Assessment (EIA) Division of the Environmental
Management Bureau (EMB) Central and Regional Offices shall be the lead
implementing units in carrying out the roles and obligations of the
DENR as stipulated in the MOA.
Section 2. PEZA
The PEZA Environmental Safety Group (ESG) at the PEZA Central Office
with Sub-Units in public ecozones shall lead the implementation of the
roles and obligations of PEZA in this MOA.
PEZA shall assist the proponent on the substantive as well as the procedural
requirements of the EIS System as prescribed in this IRR.
Rule 5. EIS System Rules and Regulations for Special Economic
1. DENR REQUIREMENTS AND PROCESSING RESPONSIBILITY AND TIMEFRAMES
A. Responsibility of Processing Application for ECC and ECC Amendment
The DENR has the sole responsibility of processing ECC applications
of ECPs following the existing EIS system rules and regulations. PEZA
shall assist DENR in the processing of ECC applications of projects
not classified as single project ECPs , either for the issuance of a
new ECC or simply for the amendment of the existing ECC [refer to attached
Flowchart for ECC Application of PEZA Proponents (with corresponding
explanation) - Annex 1].
The following provisions shall apply only to projects within the scope
of the EIS System but are not classified as single project ECPs. All
projects classified as ECP shall follow the existing rules and regulations
for the processing of ECCs.
B. DENR Requirements and Processing Timeframes
With the assistance of the PEZA-ESG in the screening of documentary
requirements for the processing of applications for ECC and ECC amendment,
EMB shall be assured of the completeness of such documents when the
application is submitted to the EMB. As such, streamlined processing
timeframes shall be adopted for PEZA projects within the scope of the
EIS System that are not classified as single project ECPs. The details
of the requirements and processing timeframe for different project categories
are specified in Annex 2.
C. Projects not Covered by the EIS System
Projects which are classified as not covered under existing DENR Rules
and Regulations may proceed with project implementation without CNC.
The EMB-DENR, however, may require such projects or undertakings to
provide additional environmental safeguards as it may deem necessary.
Section 2. COMPLIANCE MONITORING
A. Site Inspections – The PEZA - ESG shall conduct annual
inspections, follow-up inspections, incident investigations and other
types of inspections that may be required in monitoring the Proponents’
compliance with environmental rules and regulations. In the implementation
of such activities, the DENR may assign inspectors to jointly undertake
the said inspections with PEZA. When the DENR is unable to assign its
own inspectors, it may do either of the following:
1. adopt the report of the PEZA-ESG inspectors; or
2. schedule a separate inspection, subject to the provision of the succeeding
B. DENR On-the-Spot Inspections – The PEZA-ESG,
shall assign personnel to facilitate the entry of DENR inspectors inside
the ecozone for purposes of, but not limited, to scoping, risk assessment
and monitoring of proponent’s premises. The PEZA-ESG shall be
provided copies of the results of such inspections, simultaneously with
submission of findings to the PEZA developer / locator inspected.
C. Multipartite Monitoring Team - The PEZA shall automatically
be part of the Multipartite Monitoring Team (MMT) of all PEZA-registered
D. Issuance of Notices of Violation – The DENR
shall simultaneously furnish PEZA ESG and the proponents with copies
of Notice of Violation and Order/Directive for imposition of fines issued
to the latter for having violated applicable environmental laws, rules
Rule 6. Support Mechanisms
1. DATABASE BUILD-UP
A. The DENR, through the EMB, shall provide PEZA through its
ESG with updated copies of all existing laws, rules, regulations, guidelines,
programs, policies, references, journals, and publications.
B. The PEZA-ESG shall compile database from the DENR including data
from PEZA Environmental Sub-Units at the Public Ecozone and make available
these materials for the use and access of all PEZA operating units and
C. The DENR-EMB shall assist PEZA in developing a directory or network
of local, national and foreign / international environmental organizations
and agencies, which may directly or indirectly, contribute to the effective
implementation of PEZA’s role in environmental protection.
D. PEZA and DENR shall endeavor to establish Geographical Information
Systems (GIS) in PEZA-declared ecozones which shall be the basis for
ecozone ecological profiling.
E. PEZA shall continuously update the list of its locator enterprises
and economic zones posted in the website, or for the purpose of this
agreement, make available an annual register of new proponents for the
reference of EMB.
Section 2. TRAINING
A. The DENR-EMB shall assist in the training of PEZA staff
on, but not limited to, the following concerns:
1. Environmental Impact Assessment (EIA) scoping process;
2. EIS document completeness evaluation and verification;
3. Pre-screening and initial evaluation of EIS documents;
4. EIA technical review; and
5. ECC conditions compliance monitoring.
The conduct of adequate orientation / training for concerned personnel
from PEZA and EMB Central and Regional Offices shall be undertaken immediately
after this IRR takes effect.
B. The PEZA shall provide budgetary allocation for the in-house training
of PEZA staff, whenever necessary.
Section 3. SUPPLEMENTAL GUIDELINES
EMB shall assist PEZA in drafting supplemental guidelines such
as, but not limited to, IEE Checklist Report Formats for specific industry
types within the PEZA’s Economic Zones and specific guidelines
for the establishment of Environmental Monitoring Fund (EMF), Environmental
Guarantee Fund (EGF) and Multipartite Monitoring Team (MMT) for the
improvement and uniformity of the procedures on the processing of ECC
applications and compliance monitoring.
1. This implementing rules and regulations shall take effect immediately
after conformance of both parties.
2. Amendments to these Rules may be effected only upon mutual consent
by both parties.
B. DE LIMA ELISEA
PEZA Director General DENR
WILHELM G. ORTALIZ
PEZA Deputy Director General for
DENR Undersecretary for Management
Policy and Planning
MARY HARRIET O. ABORDO
PEZA Deputy Director General EMB