Philippine Clean Water Act 2004

Policy, purpose, and guiding framework

The State must streamline processes for prevention, control, and abatement of pollution of water resources (Section 2).
The State must promote environmental strategies and use economic instruments and control mechanisms for protecting water resources (Section 2).
The State must formulate a holistic national program of water quality management that links water quality issues to water sources, ecological protection, water supply, public health, and quality of life (Section 2).
The State must enforce accountability for short and long-term adverse environmental impacts of projects, programs, or activities (Section 2).
The State must encourage public information, education, and participation in water quality management and monitoring (Section 2).
The State must encourage cooperation and self-regulation among citizens and industries through incentives and market-based instruments, within acceptable boundaries of public health and environment (Section 2).
The State must focus on a comprehensive program for pollution prevention (Section 2).

Coverage and key definitions

The Act applies to water quality management in all water bodies, primarily to abatement and control of pollution from land-based sources, while water quality standards, regulations, and civil liability and penal provisions are enforced irrespective of sources of pollution (Section 3).
The Department means the Department of Environment and Natural Resources (DENR) (Section 4).
Discharge includes spilling, leaking, pumping, pouring, emitting, emptying, releasing, or dumping of any material into a water body or onto land from which it might flow or drain into said water (Section 4).
Dumping covers unauthorized or illegal disposal of wastes or toxic or hazardous material, but does not mean release of effluent from commercial, industrial, and domestic sources within effluent standards (Section 4).
Effluent means discharges from known sources passed into a body of water or land, or wastewater flowing out of a manufacturing/industrial/recreational facility, including domestic and commercial facilities (Section 4).
Effluent standard is the legal restriction/limitation on quantities, rates, and/or concentrations (or combination) of physical, chemical, or biological parameters that a person or point source is allowed to discharge (Section 4).
Water body includes both natural and man-made fresh, brackish, and saline waters (including aquifers, groundwater, springs, creeks, streams, rivers, ponds, lagoons, reservoirs, lakes, bays, estuarine and coastal/marine waters), and excludes those constructed and used purposely as water treatment facilities and/or water storage for recycling and re-use integral to process industry/manufacturing (Section 4).
Water quality means the characteristics of water defining its use, including physical, chemical, biological, bacteriological, or radiological characteristics by which acceptability is evaluated (Section 4).

Water quality management areas

The DENR, in coordination with NWRB, designates water quality management areas using appropriate physiographic units such as watersheds, river basins, or water resources regions (Section 5).
Management areas must share similar hydrological/hydrogeological/meteorological/geographic conditions affecting pollutant reactions and diffusions, or share common interest/development programs/prospects/problems (Section 5).
Each management area has a governing board with representatives of mayors and governors of member LGUs, relevant national government agencies, duly registered NGOs, the water utility sector, and the business sector; the DENR representative chairs the board (Section 5).
Each management area must create a multi-sectoral group to establish and operate a water quality surveillance and monitoring network, including sampling schedules; it must submit reports and recommendations to the governing board (Section 5).
A technical secretariat for each management area is created as part of the DENR and must provide technical support; it must have at least four (4) members with specified professional qualifications (Bar membership; chemistry-related; civil/hydrology-related groundwater experience; geology/biology-related experience) (Section 5).
The areas within the Laguna Lake Development Authority (LLDA) jurisdiction are designated as one management area under LLDA administration under Republic Act No. 4850, as amended, with standards and wastewater charge system enforced in that area (Section 5).

Non-attainment areas and sewerage requirements

DENR must designate water bodies or portions where specific pollutants already exceeded water quality guidelines as non-attainment areas for the exceeded pollutants (Section 6).
DENR must prepare and implement a program to prevent new sources of the exceeded pollutant in non-attainment areas without a corresponding reduction in discharges from existing sources (Section 6).
If a pollutant is naturally occurring (e.g., naturally high boron and other elements in geothermal areas), discharge may be allowed, but effluent concentration must not exceed naturally occurring levels in the area and must not adversely affect water supply, public health, and ecological protection (Section 6).
DENR, in coordination with NWRB, DOH, DA, governing boards, and other agencies and private sectors, must take measures to upgrade water quality in non-attainment areas to meet the standards under which they were classified (Section 6).
LGUs must prepare and implement contingency plans and measures, including relocation when necessary, for protection of residents in potentially affected areas (Section 6).
Section 7 directs DPWH (through relevant attached agencies) to prepare a national sewerage and septage management program in connection with Section 8, as soon as possible but not exceeding twelve (12) months from the effectivity of the Act; the program must include a priority listing based on stated factors and enable annual national funding for construction/rehabilitation (Section 7).
Each LGU must appropriate necessary land, including required rights-of-way/road access, for sewage and/or septage treatment facilities (Section 7).
Each LGU may raise funds to subsidize operations and maintenance of sewerage treatment or septage facilities through local property taxes and a service fee system (Section 7).
Within five (5) years from effectivity, the agency vested to provide water supply and sewerage facilities and/or concessionaires in Metro Manila and other highly urbanized cities (HUCs) (as defined in Republic Act No. 7160) must require connections of existing sewage lines in specified areas and establishments to available sewerage systems, subject to sewerage service charges/fees under existing laws, and subject to compliance with requirements for all sources of sewage and septage (Section 8).
In areas not considered HUCs, DPWH in coordination with DENR and DOH and other agencies must employ septage or combined sewerage-septage management systems (Section 8).
DOH must formulate guidelines and standards for collection, treatment, and disposal of sewage, including guidelines for centralized sewage treatment systems (Section 8).

Water quality funds and variance rules

A National Water Quality Management Fund is established as a special account in the National Treasury, administered by DENR in coordination with other concerned agencies (Section 9).
The national fund finances containment and clean-up operations in government water pollution cases, ecosystem restoration/rehabilitation, research/enforcement/monitoring, technical assistance, rewards/incentives, information and education campaigns, and other disbursements solely for prevention, control, or abatement of water pollution and management/administration of management areas as authorized by DENR (Section 9).
The fines imposed and damages awarded to the government by the Pollution Adjudication Board (PAB), proceeds of permits issued by DENR under the Act, and donations/endowments/grants form part of the fund (Section 9).
Donations, endowments, and grants as contributions to the national government under the Act are exempt from donor’s taxes and all other taxes, charges or fees imposed by government and are deductible from gross income for income tax purposes (Section 9).
An Area Water Quality Management Fund is established for maintenance and upkeep of water bodies within a water quality management area (Section 10).
The area fund supports rewards and incentives for entities whose effluent discharges are better than the water quality criteria of the receiving body’s target classification, loans for acquisitions and repairs of facilities to reduce quantity and improve wastewater discharge quality, and regular maintenance of water bodies within the management area (Section 10).
Section 10 limits operational expenses allocation to not more than ten percent (10%) of the total annually accruing funds for the operational expenses of the governing board, its secretariat, and the multi-sectoral monitoring network (Section 10).
The area fund initially comes from fines incurred by establishments located in rural areas before the Act’s effectivity, and thereafter from fees collected under the wastewater charge system, donations/endowments/grants for area water quality management (Section 10).
DENR may provide water quality variance for geothermal exploration that encounters reinjection constraints, subject to adequate protection of beneficial use of water bodies downstream (Section 11).
The variance provision may be applied to oil and gas exploration as determined by DENR (Section 11).

Wastewater charges, permits, trading

DENR must implement a wastewater charge system in all management areas, including the Laguna Lake Region and Regional Industrial Centers, through collection of wastewater charges/fees based on payment to government for discharging wastewater into water bodies (Section 13).
Wastewater charges must consider: strong economic inducement to reduce pollutants and invest in pollution control technology; covering the cost of administering water quality management/improvement programs; reflecting damages caused by water pollution including rehabilitation costs; type of pollutant; classification of receiving water body; and other special attributes of the water body (Section 13).
The wastewater charge formula must be established with due public consultation within six (6) months from effectivity, and the charge is based on net waste load (Section 13).
Net waste load is the difference between the initial waste load of the abstracted water and the waste load of the final effluent discharge of an industry, and net waste load must not be lower than the initial waste load (Section 13).
The wastewater charge system does not apply to wastewater from geothermal exploration (Section 13).
Industries whose effluent are within promulgated standards are charged only a minimal reasonable amount determined by DENR after due public consultation, based on volumetric rate of discharge and effluent concentration (Section 13).
DENR must require owners or operators of facilities discharging regulated effluents to secure a permit to discharge (Section 14).
A discharge permit is the legal authorization specifying quantity and quality of effluent allowed, compliance schedule, and monitoring requirements (Section 14).
DENR must encourage adoption of waste minimization and waste treatment technologies when deemed cost effective (Section 14).
DENR must develop procedures linking current and projected water quality guidelines of receiving water body/ies with total pollution loadings to allocate effluent quotas in discharge permits (Section 14).
Industries without a discharge permit may receive a period of twelve (12) months after effectivity of the implementing rules and regulations to secure a discharge permit (Section 14).
Effluent trading may be allowed per management area (Section 14).

Environmental liability, cleanup, and EIS mechanisms

DENR must require project and program proponents to put up an Environmental Guarantee Fund (EGF) as part of the environmental management plan attached to the environmental compliance certificate under Presidential Decree No. 1586 and its implementing rules (Section 15).
The EGF finances ecosystem health maintenance, including conservation of watersheds and aquifers affected by development and needs of emergency response, cleanup, or rehabilitation of areas that may be damaged during actual implementation (Section 15).
Liability for damages continues even after termination of a program or project, until lapse of the period stated in the environmental compliance certificate as determined by DENR (Section 15).
The EGF may be trust fund, environmental insurance, surety bonds, letters of credit, self-insurance, or any other instruments identified by DENR (Section 15).
Proponents must provide evidence of availment of required guarantee instruments from accredited financial instrument providers (Section 15).
Any person who causes pollution in or pollutes water bodies in excess of applicable and prevailing standards is responsible to contain, remove, and clean up the pollution incident at his own expense to the extent water bodies have been rendered unfit for utilization and beneficial use (Section 16).
If emergency clean-up is necessary and the polluter fails to immediately undertake it, DENR in coordination with other concerned government agencies conducts containment, removal, and clean-up operations (Section 16).
The polluter must reimburse cleanup expenses after proper administrative determination; reimbursements go to the Water Quality Management Fund or other funds where sourced (Section 16).
DENR must implement programmatic compliance with the environmental impact assessment system for developments consisting of series of similar projects; projects subdivided into phases/stages in contiguous or geographically dispersed areas; and development composed of multiple components or a cluster of projects co-located in areas such as industrial estates or development zones (Section 17).
Programmatic compliance is guided by carrying capacity assessments from ecological profiles, which identify environmental constraints and opportunities and must account for cumulative impacts and risks (Section 17).
DENR may enter into agreements with LGUs to incorporate programmatic environmental impact assessment into preparation, updating, or revision of local land use plans and area development plans, consistent with the Local Government Code (Section 17).
DENR may allow each regional industrial center established under Republic Act No. 7916 (PEZA law) to allocate effluent quotas among pollution sources qualifying under an environmental impact assessment system programmatic compliance program, consistent with Presidential Decree No. 1586 and its implementing rules (Section 18).

Institutional enforcement and LGU roles

DENR is the primary agency for implementation and enforcement of the Act unless otherwise provided (Section 19).
DENR must prepare and publish: a National Water Quality Status Report within twenty-four (24) months from effectivity and review/revise annually or as needed thereafter (Section 19); an Integrated Water Quality Management Framework within twelve (12) months after completion of the status report (Section 19); and a ten (10)-year Water Quality Management Area Action Plan within twelve (12) months after completion of the framework for each designated water management area (Section 19).
Water quality management area governing boards must review action plans every five (5) years or as needed (Section 19).
DENR must prepare and publish a national groundwater vulnerability map within twenty-four (24) months after effectivity (Section 19).
DENR must enforce and revise within twelve (12) months from effectivity water quality guidelines after due consultation, and review them every five (5) years or as needed (Section 19).
DENR must review and set effluent standards every five (5) years from effectivity or sooner as determined by DENR, and in the interim DENR Administrative Order No. 35 applies (Section 19).
When new and more stringent standards are set, DENR may establish a grace period with a maximum of five (5) years, limited to the moratorium on issuance of cease and desist and/or closure orders except where operation poses serious and grave threat to the environment or the industry fails to institute retooling/upgrading or establishing an environmental management system (EMS) (Section 19).
DENR must establish within twelve (12) months internationally accepted procedures for sampling and analysis of pollutants and formulate testing procedures and establish an accreditation system for laboratories in coordination with concerned agencies (Section 19).
DENR must categorize point and non-point sources of water pollution within eighteen (18) months from effectivity and every two (2) years thereafter (Section 19).
DENR must classify groundwater sources within twelve (12) months from effectivity (Section 19).
DENR must classify or reclassify all water bodies within timelines prescribed by Section 19, and in the interim DENR Administrative Order No. 34 applies (Section 19).
Water body classification/reclassification must consider operations of businesses or facilities existing prior to effectivity, and DENR may authorize the use of water for more restrictive purposes in classification, but discharges from such use must meet DENR-set effluent standards (Section 19).
DENR must exercise jurisdiction over all aspects of water pollution and water quality management, including prevention and abatement measures, supervision/control, partnership efforts with government/LGUs/academic/civil society/private sectors, information and education programs in coordination with agencies identified in Section 22 (f), and encouragement of private business use of water quality management systems (Section 19).
DENR must issue rules and regulations, issue orders and impose fines/penalties/administrative sanctions to compel compliance, undertake coordinated protocols for water-related emergency incidents, and issue permits/clearances and similar instruments under the Act (Section 19).
DENR shall gradually devolve to LGUs and governing boards some authority on water quality management/regulation, including permit issuance, monitoring, and imposition of administrative penalties, when DENR determines the LGU or governing board is ready and technically capable (Section 19).
LGUs must share responsibility in managing and improving water quality within their territorial jurisdictions (Section 20).
Each LGU must prepare a compliance scheme within six (6) months after the establishment of the water quality management area action plan, subject to review and approval of the governing board (Section 20).
Each LGU’s Environment and Natural Resources Office (ENRO) established under Republic Act No. 7160 must perform monitoring of water quality, emergency response, compliance with the Water Quality Management Action Plan framework, active participation in water quality protection/rehabilitation, and coordination in implementing measures to prevent/control water pollution (Section 20).
If there are no environment and natural resources officers in a province/city/municipality, the local executive may designate any official and/or chief of office (preferably the provincial/city/municipal agriculturist) or employee with sufficient experience, subject to approval of the Secretary of DENR (Section 20).

Linkage mechanism and education

DENR and concerned attached agencies (including LLDA) must coordinate and enter agreements with other government agencies, industrial sectors, and other concerned sectors to further objectives (Section 22).
The Philippine Coast Guard enforces water quality standards in marine waters from offshore sources in coordination with DA and DENR (Section 22).
DPWH (through attached agencies such as MWSS and LWUA) and other urban water utilities provide sewerage and sanitation facilities and efficient and safe collection, treatment, and disposal of sewage within jurisdiction (Section 22).
DA coordinates with DENR to formulate guidelines for reuse of wastewater for irrigation and other agricultural uses and for prevention/control/abatement of pollution from agricultural and aquaculture activities; non-point source discharges must be categorized and defined pursuant to the Act (Section 22).
BFAR of DA primarily prevents and controls water pollution for development, management, and conservation of fisheries and aquatic resources (Section 22).
DOH primarily promulgates, revises, and enforces drinking water quality standards (Section 22).
DOST in coordination with DENR and other agencies prepares a program for evaluation, verification, development, and public dissemination of pollution prevention and cleaner production technologies (Section 22).
DepEd, CHED, DILG, and PIA assist and coordinate in preparation and implementation of a comprehensive continuing public education and information program in line with Act objectives (Section 22).

Records, access, and research

DENR or a duly authorized representative may require any person who owns or operates a pollution source or is subject to Act requirements to submit reports and written information after proper consultation and notice (Section 23).
Records, reports, and information obtained must be made available to the public except when the entity makes a satisfactory showing that public disclosure would divulge secret methods or processes entitled to protection as intellectual property (Section 23).
DENR must incorporate such records, reports, and information into its industrial rating system (Section 23).
DENR, through authorized representatives, has the right to enter premises; access documents and relevant materials; inspect pollution/waste sources, control devices, monitoring equipment, and required methods; and test any discharge (Section 23).
For fish kill incidents, BFAR may enter the premises of an establishment reported to have caused the incident in the course of investigation (Section 23).
DENR must establish a national research and development program for prevention and control of water pollution in coordination with DOST and other concerned agencies and academic institutions (Section 24).
DOST must conduct and promote coordination and acceleration of research, investigation, experiments, training, surveys, and studies on causes, extent, prevention, and control of pollution among concerned institutions (Section 24).

Incentives and rewards for compliance

Rewards, monetary or otherwise, are provided to individuals, private organizations, entities (including civil society) undertaking outstanding and innovative water quality management projects, technologies, processes, techniques, or activities, sourced from the Water Quality Management Fund (Section 25).
An incentives scheme encourages LGUs, water districts, enterprises, private entities, and individuals to develop or undertake effective water quality management or actively participate in Act programs (Section 26).
Industrial wastewater treatment and/or adoption of water pollution control technology, cleaner production, and waste minimization technologies are classified as preferred areas of investment in the Investments Priority Plan subject to BOI rules and enjoy applicable fiscal and non-fiscal incentives under the Omnibus Investment Code, as amended (Section 26).
Within ten (10) years from effectivity, LGUs, WDs, enterprises, and private entities/individuals may enjoy tax-and-duty-free importation of machinery, equipment, and spare parts used for industrial wastewater treatment/collection and treatment facilities, subject to conditions that the items are not manufactured domestically in sufficient quantity/comparable quality at reasonable prices, are reasonably needed and used actually/directly/exclusively for the described activities, and have written DENR endorsement; sale/transfer/disposition without prior BOI approval within five (5) years from acquisition is prohibited and triggers solidary liability to pay twice the tax and duty exemption (Section 26).
Within ten (10) years from effectivity, a tax credit equivalent to one hundred percent (100%) of national internal revenue taxes and customs duties that would have been waived if items were imported is granted to enterprises/private entities/individuals under the same conditions and prohibition (Section 26).
Legacies, gifts, and donations for support and maintenance of effective water quality management programs are exempt from donor’s tax and deductible from gross income of donors for income tax purposes; donated imported articles exclusively used for water quality management programs are exempt from customs duties and applicable internal revenue taxes (Section 26).
Industrial wastewater treatment and/or installation of water pollution control devices are classified as pioneer and preferred areas of investment under BOI’s annual priority plan and enjoy applicable fiscal and non-fiscal incentives under the Omnibus Investment Code, as amended (Section 26).
Government financial institutions including Development Bank of the Philippines, Land Bank of the Philippines, Government Service Insurance System, and others providing financial services must accord high priority to extend financial services to those engaged in sewage collection and treatment facilities, consistent with enabling provisions in their charters or applicable laws (Section 26).
Cities and municipalities establishing or operating sewerage facilities may receive grants to develop technical capabilities (Section 26).

Prohibited acts and penalties

Section 27 prohibits discharging, depositing, or causing deposition of material into water bodies or along margins of surface waters where it may wash into surface water by tide action, storms, floods, or otherwise, causing pollution or impeding natural flow (Section 27).
Section 27 prohibits discharging, injecting, or allowing seepage into soil/sub-soil of substances that pollute groundwater; for geothermal projects, regulated discharge for short-term activities (e.g., well testing, flushing, commissioning, venting) and deep re-injection of geothermal liquids may be allowed with DENR approval, provided safety measures prevent groundwater contamination (Section 27).
Section 27 prohibits operating facilities that discharge regulated water pollutants without valid required permits or after a permit is revoked for violation of permit conditions (Section 27).
Section 27 prohibits disposal of potentially infectious medical waste into sea water by vessels unless health or safety of individuals on board is threatened by great and imminent peril (Section 27).
Section 27 prohibits unauthorized transport or dumping into sea waters of sewage sludge or solid waste under Republic Act No. 9003 (Section 27).
Section 27 prohibits transport, dumping, or discharge of prohibited chemicals, substances, or pollutants listed under Republic Act No. 6969 (Section 27).
Section 27 prohibits operating facilities that discharge or allow seepage, willfully or through gross negligence, prohibited chemicals/substances/pollutants listed under Republic Act No. 6969 into water bodies or where they are liable to be washed into surface, ground, coastal, and marine waters (Section 27).
Section 27 prohibits undertaking activities or development/expansion of projects, or operating wastewater/sewerage facilities in violation of Presidential Decree No. 1586 and its implementing rules and regulations (Section 27).
Section 27 prohibits discharging regulated water pollutants without a valid required discharge permit under the Act or after permit revocation or violation of permit conditions (Section 27).
Section 27 prohibits noncompliance by LGUs with the Water Quality Framework and Management Area Action Plan, with sanctions imposed on concerned local government officials (Section 27).
Section 27 prohibits refusal to allow entry, inspection, and monitoring by DENR; refusal to allow access to relevant reports and records; refusal or failure to submit required reports; and refusal or failure to designate pollution control officers when required (Section 27).
Section 27 prohibits directly using booster pumps in distribution systems or tampering with water supply to alter or impair water quality (Section 27).
Section 28 provides that, unless otherwise provided, any person committing prohibited acts or violating the Act or implementing rules is fined by the Secretary upon recommendation of the PAB not less than PHP 10,000 nor more than PHP 200,000 for every day of violation (Section 28).
Fines increase by 10% every 2 years to compensate for inflation and maintain deterrence (Section 28).
The Secretary,