G.R. No. 165299 - Pacific Steam Laundry, Inc. vs. Laguna Lake Development Authority

Pacific Steam Laundry, Inc. (petitioner) is engaged in laundry services and operates a plant at 114 Roosevelt Avenue, Quezon City.
On 6 June 2001, the Environmental Management Bureau of the Department of Environment and Natural Resources (DENR) endorsed a complaint regarding black smoke emission from petitioner’s plant to the Laguna Lake Development Authority (LLDA).

On 22 June 2001, LLDA conducted an investigation which revealed that untreated wastewater from petitioner’s laundry washing activities was discharged directly into the San Francisco Del Monte River.
The investigation report indicated that petitioner’s plant was operating without the required LLDA clearance, AC/PO-ESI, and Discharge Permit.
On 5 September 2001, the Environmental Quality Management Division of LLDA conducted wastewater sampling, and laboratory analysis showed non-compliance with established effluent standards (parameters included Total Suspended Solids, Biochemical Oxygen Demand, Oil/Grease Concentration, and Color Units).

Detailed the failure of the plant’s effluent to conform to the 1990 Revised Effluent Standard for Inland Water Class “C”.
Directed petitioner to submit corrective measures within fifteen (15) days.
Imposed a penalty of P1,000 per day (computed from 5 September 2001) for the discharge of pollutive wastewater, and an annual fine for operating without clearance/permits.

Petitioner responded by filing an application for LLDA Clearance and Discharge Permit and indicated its intent to undertake remedial measures.

On 1 March 2002, a compliance monitoring resulted in laboratory findings that still showed non-compliance (TSS, BOD, Chemical Oxygen Demand, and Oil/Grease).
Additional sampling on 25 April 2002 continued to reveal non-conformance in at least one parameter.
A Pollution Control and Abatement case was initiated before LLDA on 15 April 2002, followed by a public hearing on 30 April 2002 where petitioner’s continuous non-compliance was confirmed.
A re-sampling on 5 June 2002 finally confirmed compliance; however, a penalty was still computed based on the original violation period.

On 9 August 2002, in a public hearing regarding the dismissal of the pollution case, LLDA determined that the penalty should be reckoned from 5 September 2001 to 17 May 2002.
Despite petitioner’s request to recalibrate the penalty period (arguing that its discharge was not on a daily basis and pointing to its remedial efforts), the Public Hearing Committee upheld the penalty imposition.
On 16 September 2002, LLDA issued an Order to Pay the accumulated penalty amounting to P172,000 (computed for 172 days based on a penalty of P1,000 per day).
Petitioner’s subsequent motion for reconsideration was denied, and its petition for review filed with the Court of Appeals was also denied—leading to the present petition before the Supreme Court.

Whether the Laguna Lake Development Authority (LLDA) possesses the implied power to impose fines as set forth in Presidential Decree No. 984 despite the delegation of adjudicatory powers to the Pollution Adjudication Board under EO 192.

Whether the assumption of the power to impose fines by LLDA, through an implied grant of authority, constitutes an undue delegation of legislative power.