Title
Paje vs. Casino
Case
G.R. No. 207257
Decision Date
Feb 3, 2015
A coal-fired power plant project in Subic Bay faced opposition from local officials and environmental advocates, challenging ECC amendments, LGC and IPRA compliance, and environmental standards. The Supreme Court upheld the project, ruling it complied with laws and lacked evidence of environmental harm.

Case Summary (G.R. No. 207257)

Writ of Kalikasan Requirements

Under Rule 7 of the Environmental Rules, petitioners must prove (1) an actual or threatened violation of the constitutional right to a balanced and healthful ecology, (2) by unlawful act or omission of public/private entities, (3) causing environmental damage prejudicial to life, health or property in two or more cities or provinces.

Procedural History

The Supreme Court issued a Writ of Kalikasan and referred the case to the Court of Appeals (CA). The CA denied the writ privilege for lack of proof of ecological harm but declared the original ECC and its first two amendments and the SBMA-RP Energy LDA invalid for procedural defects under IPRA and the Local Government Code. Motions for reconsideration were denied, and the petitions were remanded to this Court.

Issues on Environmental Damage

Petitioners alleged thermal pollution, air and water pollution, acid deposition, and adverse health impacts, relying on lay witnesses and hearsay. They also challenged compliance with local and indigenous peoples’ consultation requirements and the ultra vires authority of DENR Administrative Order 2003-30 to amend ECCs without new EIAs.

Evidence on Environmental Impact

RP Energy presented expert testimony and modeling showing negligible temperature rise, compliance with Clean Air Act standards even under upset conditions, controlled ash handling, and dilute emissions insufficient to cause acid rain or significant ecological harm. Petitioners offered no firsthand or expert proof.

ECC Signature Requirement

The CA invalidated the initial ECC for lack of the project proponent’s signature in the Statement of Accountability. The records later showed a certified true copy signed two days after official release, negating any intent to evade conditions and warranting substantial compliance pro hac vice.

Amendments to the ECC

The CA ruled the first and second amendments void for lack of new EIAs. In fact, DAO 2003-30 and its Manual authorize use of an Environmental Performance Report and Management Plan (EPRMP) for major amendments and a Project Description Report (PDR) for minor ones. RP Energy’s submissions met these criteria, and the CA’s strict reading conflicted with the flexible EIA process designed to focus on impacts of project modifications.

Indigenous Peoples Certification

The CA invalidated the ECC and LDA for failing to obtain a Section 59 IPRA “pre-certification” (Certificate of Non-Overlap, CNO) before issuance. However, an ECC is not a license or lease subject to Section 59; it is an environmental clearance. The CNO requirement properly applies to the LDA but was later secured, and equity demands upholding the agreement given good-faith compliance.

Local Government Approval

Sections 26–27 of the Local Government Code require prior local consultations and sanggunian approval for projects that may affect ecological balance. But ECCs are environmental clearances, not implementation permits. Moreover, the SBMA has exclusive authority over Subic Freeport under RA 7227, sub

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