Philippine Clean Water Act of 2004

Policy and declared objectives

The State shall streamline prevention, control, and abatement processes for water pollution. (Section 2)
The State shall promote environmental strategies and appropriate economic instruments and control mechanisms for water resource protection. (Section 2)
The law directs a holistic national program recognizing that water quality management is inseparable from water sources, ecological protection, water supply, public health, and quality of life. (Section 2)
The law directs an integrated water quality management framework through proper delegation and effective coordination. (Section 2)
The law promotes environmentally friendly and energy efficient commercial and industrial processes and products. (Section 2)
The law encourages cooperation and self-regulation through incentives and market-based instruments, and it promotes the role of private industrial enterprises within public health and environmental boundaries. (Section 2)
The law focuses water pollution management on pollution prevention and public participation through information and education. (Section 2)

Coverage and controlling emphasis

The Act applies to water quality management in all water bodies. (Section 3)
The Act primarily applies to abatement and control of pollution from land-based sources. (Section 3)
Water quality standards, regulations, and civil liability and penal provisions are enforced irrespective of sources of pollution. (Section 3)

Core definitions and terms

Aquifer means an underground layer of water-bearing rock that transmits water in sufficient quantity to supply pumping wells or natural springs. (Section 4(a))
Aquatic life means all organisms living in freshwater, brackish and marine environments. (Section 4(b))
Beneficial use means use of the environment or any element or segment thereof conducive to public or private welfare, safety, and health, including domestic, municipal, irrigation, power generation, fisheries, livestock raising, industrial, recreational, and other purposes. (Section 4(c))
Classification/Reclassification of Philippine Waters means categorization of all water bodies considering existing quality, physical characteristics, beneficial existing/future uses, and vulnerability to contamination. (Section 4(d))
Civil Society means NGOs and POs. (Section 4(e))
Cleaner production means an integrated preventive environmental strategy to increase efficiency and reduce risks to humans and the environment. (Section 4(f))
Clean-up operations mean removal of pollutants discharged or spilled and restoration of affected areas to former physical, chemical, and biological state or conditions. (Section 4(g))
Contamination means introduction of non-natural substances into water that make it less desirable or unfit for intended use. (Section 4(h))
Department means the Department of Environment and Natural Resources (DENR). (Section 4(i))
Discharge includes spilling, leaking, pumping, pouring, emitting, emptying, releasing, or dumping of any material into a water body or onto land from which it may flow or drain into the water body. (Section 4(j))
Dumping means any unauthorized or illegal disposal into any body of water or land of wastes or toxic or hazardous material, and it does not mean release of effluent from commercial, industrial, and domestic sources within effluent standards. (Section 4(l))
Effluent means discharges from known sources passed into a body of water or land, including wastewater flowing out of manufacturing and industrial plants and domestic, commercial, and recreational facilities. (Section 4(m))
Effluent standard means legal restriction/limitation on quantity, rate, and/or concentration (physical, chemical, or biological parameters) of effluent a person or point source is allowed to discharge. (Section 4(n))
Groundwater vulnerability means the relative ease with which a contaminant near the land surface can migrate to an aquifer or deep well. (Section 4(s))
Hazardous waste includes wastes (solid, liquid, contained gaseous, or semi-solid) that increase mortality or serious irreversible/incapacitating reversible illness, considering toxicity, persistence, degradability, and potential for accumulation. (Section 4(u))
Point source means an identifiable source of pollution with a specific point of discharge into a particular water body. (Section 4(aa))
Pollutant means any substance that alters receiving water quality to adversely affect beneficial use; is hazardous/potentially hazardous; imparts objectionable odor/temperature change/physical-chemical-biological change; or exceeds allowable limits/quality standards or violates conditions in the Act. (Section 4(bb))
Potentially infectious medical waste includes isolation wastes, infectious agents, human blood and blood products, pathological wastes, sharps, body parts, contaminated bedding, surgical wastes, and other disposable medical equipment and material posing a risk. (Section 4(dd))
Secretary means the Secretary of the DENR. (Section 4(ee))
Sewage means water-borne human or animal wastes excluding oil or oil wastes, removed with associated groundwater/surface water/storm water, including vessel and other receptacle wastes. (Section 4(gg))
Sewerage includes systems and networks of pipelines, ditches, channels, conduits, pumping stations, lift stations, force mains, service connections, and appurtenant devices used for collection, transport, pumping, and treatment of sewage to disposal. (Section 4(hh))
Surface water means all water open to the atmosphere and subject to surface run-off. (Section 4(jj))
Treatment means any method/technique/process designed to alter physical, chemical, biological, and radiological character/composition of waste or wastewater to reduce or prevent pollution. (Section 4(kk))
Wastewater means waste in liquid state containing pollutants. (Section 4(nn))
Water body includes natural and man-made bodies of fresh, brackish, and saline waters, including aquifers, groundwater, springs, creeks, streams, rivers, ponds, lagoons, reservoirs, lakes, bays, estuarine, coastal, and marine waters; it excludes water treatment facilities and water storage for recycling/re-use integral to process industry/manufacturing. (Section 4(oo))
Water pollution means alteration of physical, chemical, biological, or radiological properties of a water body impairing its purity or quality. (Section 4(pp))
Water quality means characteristics defining water use through physical, chemical, biological, bacteriological, or radiological characteristics by which acceptability is evaluated. (Section 4(qq))
Water quality guidelines means levels for constituents/parameters used to classify water resources and use that do not result in significant health risk and are not for direct enforcement, but for management purposes such as assessing trends and deterioration/enhancement stages. (Section 4(rr))
Water Quality Management Area Action Plan includes goals and targets (including sewerage or septage program), schedule of compliance, strategies/techniques, water quality information and education program, resource requirements and sources, enforcement procedures, and rewards and incentives under Chapter 4. (Section 4(ss))

Water quality management areas

The DENR, in coordination with the National Water Resources Board (NWRB), shall designate water quality management areas using physiographic units such as watersheds, river basins, or water resources regions. (Section 5(a))
Each management area is governed by 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(a))
LGUs that belong to more than one management board must designate only one (1) representative for all management areas where it is a member. (Section 5(a))
Each management area governing board formulates coordination strategies for effective implementation and monitors compliance with the action plan. (Section 5(a))
Each management area creates a multi-sectoral group to establish a water quality surveillance and monitoring network, including sampling schedules; the group submits its report and recommendations to the chair of the governing board. (Section 5(a))
A technical secretariat for each management area is created as part of the DENR, with at least four (4) members meeting specified professional qualification minimums (including a Philippine Bar member and technical/engineering/scientific experts). (Section 5(a))
Areas under the jurisdiction of the Laguna Lake Development Authority (LLDA) are designated as one management area under LLDA administration pursuant to Republic Act No. 4850, as amended. (Section 5(a))
Standards under this Act and the wastewater charge system established under this Act must be enforced in the LLDA area. (Section 5(a))

Non-attainment area upgrades and contingency

The DENR designates water bodies or portions where specific pollutants exceed water quality guidelines as non-attainment areas. (Section 6(a))
The DENR prepares and implements a program preventing new sources of exceeded pollutants in non-attainment areas without a corresponding reduction in discharges from existing sources. (Section 6(a))
If the pollutant is naturally occurring (e.g., naturally high boron and other elements in geothermal areas), discharge may be allowed subject to effluent concentration not exceeding the naturally occurring level in the area. (Section 6(a))
Effluent concentration and volume may not adversely affect water supply, public health, and ecological protection. (Section 6(a))
The DENR, in coordination with NWRB, DOH, DA, governing board, and other concerned agencies and private sectors, takes measures to upgrade non-attainment area water quality to meet the standards for classification. (Section 6(a))
LGUs must prepare and implement contingency plans and measures, including relocation when necessary, to protect residents in potentially affected areas. (Section 6(a))

Sewerage, septage, and domestic connections

The DENR’s Department of Public Works and Highways (DPWH) must, through relevant attached agencies and in coordination with the DENR, LGUs, and other agencies, prepare a national sewerage and septage management program within twelve (12) months from the Act’s effectivity. (Section 7(a))
The national program must include priority listing of projects for LGUs based on population density and growth, degradation of water resources, topography, geology, vegetation, rehabilitation of existing facilities, and other relevant factors determined by the Secretary. (Section 7(a))
The national government may allot funds annually for construction and rehabilitation based on the national listing. (Section 7(a))
Each LGU must appropriate necessary land, including rights-of-way/road access, for sewage and/or septage treatment facility construction. (Section 7(a))
Each LGU may raise funds for operation and maintenance through local property taxes and an enforcement of a service fee system. (Section 7(a))
Within five (5) years from the Act’s effectivity, water supply and sewerage facilities agencies/concessionaires in Metro Manila and other highly urbanized cities (HUCs, as defined in Republic Act No. 7160) must require connections to available sewerage systems for specified establishments and households in subdivisions, condominiums, commercial centers, hotels, sports and recreational facilities, hospitals, market places, public buildings, industrial complex, and similar establishments. (Section 8(a))
Connections are subject to sewerage services charges/fees under existing laws, rules, or regulations unless the sources already use their own sewerage system. (Section 8(a))
All sewage and septage sources must comply with requirements under this section. (Section 8(a))
In areas not considered HUCs, DPWH in coordination with the DENR and DOH and other agencies must employ septage or combined sewerage-septage management systems. (Section 8(a))
DOH in coordination with other government agencies must formulate guidelines and standards for collection, treatment, and disposal of sewage, including guidelines for centralized sewage treatment system establishment and operation. (Section 8(a))

National and area water quality funds

A water quality management fund, administered by the DENR in coordination with other concerned agencies, is established as a special account in the National Treasury. (Section 9(a))
The national fund finances containment and clean-up operations by government in water pollution cases; ecosystem restoration and rehabilitation of affected areas; research, enforcement, and monitoring; technical assistance; rewards and incentives; information and education campaigns; and other disbursements solely for prevention/control/abatement and management/administration of management areas in amounts authorized by the DENR. (Section 9(a))
Fines imposed and damages awarded to government by the Pollution Adjudication Board (PAB), proceeds of permits issued by the DENR under the Act, and donations/endowments/grants in the form of contributions under the Act form part of the national fund. (Section 9(a))
Donations/endowments/grants as contributions to the national government under the Act are exempt from donor’s taxes and all other taxes, charges, or fees, and are deductible from gross income of the donor for income tax purposes. (Section 9(a))
Disbursements from the national fund are subject to usual accounting and budgeting rules and regulations. (Section 9(a))
An area water quality management fund is established for maintenance and upkeep of water bodies in a water quality management area. (Section 10(a))
The area fund grants rewards and incentives to entities whose effluent discharges are better than the water quality criteria of the target classification; provides loans for facility acquisition and repairs to reduce quantity and improve wastewater discharge quality; and supports regular maintenance of water bodies. (Section 10(a))
No more than ten percent (10%) of total annual fund accrual is allocated for operational expenses of the governing board, its secretariat, and the multi-sectoral surveillance and monitoring network. (Section 10(a))
The area fund initially comes from fines incurred by establishments located in rural areas before the Act’s effectivity. (Section 10(a))
Thereafter, area fund sources include fees collected under the wastewater charge system under Section 13, plus donations/endowments/grants for area water quality management. (Section 10(a))
The area fund is managed by the board of the corresponding management area, and disbursements are subject to usual accounting and budgeting rules. (Section 10(a)

Water quality variance and industry lists

The DENR may provide variance in water quality criteria and standards for geothermal exploration encountering reinjection constraints, provided adequate protection of downstream beneficial use is provided. (Section 11(a))
The geothermal variance provision may be applied to oil and gas exploration as determined by the DENR. (Section 11(a))
Within twenty-four (24) months from the Act’s effectivity and every two (2) years thereafter, the DENR must, through due public consultation, revise and publish a list of industry sector categories for which effluent standards are provided for each significant wastewater parameter per industry sector. (Section 12(a))
The DENR must provide additional classification for other parameters associated with discharge of a particular industry and include them in the prescribed listing. (Section 12(a))

Wastewater charges and discharge permits

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

Environmental rehabilitation and financial guarantees

The DENR requires program and project proponents to put up an environmental guarantee fund (EGF) as part of the environmental management plan attached to an environmental compliance certificate under Presidential Decree No. 1586 and its implementing rules and regulations. (Section 15(a))
The EGF finances ecosystem health maintenance, conservation of affected watersheds and aquifers, and emergency response, clean-up, or rehabilitation for areas possibly damaged during project or program implementation. (Section 15(a))
Liability for damages continues even after termination of a program or project until the lapse of a period indicated in the environmental compliance certificate as determined by the DENR. (Section 15(a))
The EGF may be a trust fund, environmental insurance, surety bonds, letters of credit, self-insurance, or any other instruments identified by the DENR. (Section 15(a))
The choice of guarantee instrument depends among others on risk assessment and financial test mechanisms devised by the DENR. (Section 15(a))
Proponents must furnish the DENR evidence of availment of required instruments from accredited financial instrument providers. (Section 15(a))

Clean-up operations and reimbursement

Any person who causes pollution in or pollutes water bodies beyond applicable prevailing standards must contain, remove, and clean-up the pollution at his own expense to the extent the water bodies are rendered unfit for utilization and beneficial use. (Section 16(a))
If emergency clean-up operations are necessary and the polluter fails to immediately undertake them, the DENR in coordination with concerned government agencies conducts containment, removal, and clean-up operations. (Section 16(a))
Expenses incurred by the government are reimbursed by the persons found to have caused the pollution upon proper administrative determination in accordance with the Act. (Section 16(a))
Reimbursements are paid to the Water Quality Management Fund or other funds where disbursements were sourced. (Section 16(a))

Programmatic assessment and quotas

The DENR implements programmatic compliance with the environmental impact assessment system for: (1) a series of similar projects or a project subdivided into phases/stages in contiguous or geographically dispersed areas; and (2) development with several components or a cluster of projects in co-located programmatic areas such as industrial estates, export processing zones, or development zones in a local land use plan. (Section 17(a))
Programmatic assessment is guided by carrying capacity assessments from ecological profiles identifying constraints and opportunities, and it accounts for cumulative impacts and risks. (Section 17(a))
Consistent with the Local Government Code, the DENR may enter agreements with LGUs to incorporate programmatic environmental impact assessment into preparation, updating, or revision of local land use plans and area development plans. (Section 17(a))
The DENR may allow each regional industrial center under Republic Act No. 7916 to allocate effluent quotas to pollution sources within its jurisdiction that qualify under an environmental impact assessment system programmatic compliance program under Presidential Decree No. 1586 and its implementing rules and regulations. (Section 18(a))

Lead agency and enforcement functions

The DENR is the primary government agency responsible for implementing and enforcing the Act unless otherwise provided. (Section 19(a))
The DENR must prepare a National Water Quality Status Report within twenty-four (24) months from effectivity, then review/revise and publish annually or as need arises. (Section 19(a))
The DENR must prepare an Integrated Water Quality Management Framework within twelve (12) months following completion of the status report. (Section 19(a))
The DENR must prepare 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(a))
Water quality management area governing boards must review the action plan every five (5) years or as needed. (Section 19(a))
The DENR must prepare and publish a national groundwater vulnerability map within twenty-four (24) months after effectivity, using prevailing standards and methodologies. (Section 19(a))
The DENR must enforce, review, and revise within twelve (12) months from effectivity the water quality guidelines after due consultation; it must review guidelines every five (5) years or as needed in coordination with appropriate agencies. (Section 19(a))
The DENR must review and set effluent standards every five (5) years from effectivity or sooner as determined by the DENR. (Section 19(a))
In the interim, DENR Administrative Order No. 35 applies to effluent standards. (Section 19(a))
When new and more stringent standards are set, the DENR may establish a grace period with a maximum of five (5) years. (Section 19(a))
The grace period is limited to a moratorium on issuance of cease and desist and/or closure orders except where the 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(a))
Within twelve (12) months from effectivity, the DENR must establish internationally accepted procedures for sampling and analysis of pollutants, and in coordination with other agencies formulate testing procedures and establish a laboratory accreditation system. (Section 19(a))
Within eighteen (18) months from effectivity and every two (2) years thereafter, the DENR must categorize point and non-point sources of water pollution. (Section 19(a))
Within twelve (12) months from effectivity, the DENR must classify groundwater sources. (Section 19(a))
The DENR must classify or reclassify all water bodies according to beneficial uses, with DENR Administrative Order No. 34 applying in the interim. (Section 19(a))
Classification/reclassification must consider operations of businesses or facilities existing prior to effectivity of the Act. (Section 19(a))
The DENR may authorize use of water for other purposes more restrictive in classification, provided discharges resulting from such use meet DENR effluent standards. (Section 19(a))
The DENR must exercise jurisdiction over all aspects of water pollution and water quality management, including preventing and abating pollution using available methods and technologies. (Section 19(a))
The DENR must establish cooperative efforts among government, LGUs, academic institutions, civil society, and the private sector; disseminate information and education programs; promote water quality management system equipment usage; report annually to Congress; issue implementing rules and regulations; issue orders and impose fines/penalties/administrative sanctions; undertake coordinated protocols for water-related emergency incidents; and issue permits/clearances and similar instruments. (Section 19(a))
The DENR shall gradually devolve to LGUs and to governing boards authority to administer some aspects of water quality management and regulation, including permit issuance, monitoring, and imposition of administrative penalties, when DENR determines the LGU/governing board has demonstrated readiness and technical capability. (Section 19(a))

LGU responsibilities and enforcement roles

LGUs share responsibility in management and improvement of water quality within their territorial jurisdictions. (Section 20(a))
Each LGU must prepare a compliance scheme within six (6) months after establishment of the water quality management area action plan, subject to review and approval of the governing board. (Section 20(a))
Through the ENRO under Republic Act No. 7160, LGUs must monitor water quality, respond to emergencies, comply with the framework and action plan, actively participate in protection and rehabilitation efforts, and coordinate with agencies, civil society, and sectors to prevent and control water pollution. (Section 20(a))
In provinces/cities/municipalities without ENRO officers, the local executive may designate, with approval of the DENR Secretary, an official or chief of office (preferably provincial/city/municipal agriculturist) or employee. (Section 20(a))
Any employee designated to perform the ENRO role must have sufficient experience in environmental and natural resources management, conservation, and utilization. (Section 20(a))

Business and industry incentives

The DENR and LGUs, with appropriate agencies and in consultation with business/industrial sectors including chambers of commerce, shall formulate incentives for adoption of procedures preserving and protecting water bodies through innovative equipment and processes reducing or eliminating pollutant discharges. (Section 21(a))

Inter-agency linkage roles

The DENR and its attached agencies, including LLDA, coordinate and enter into agreements with other government agencies and concerned sectors to further the Act’s objectives. (Section 22(a))
The Philippine Coast Guard, in coordination with the DA and DENR, enforces water quality standards in marine waters from offshore sources. (Section 22(a))
DPWH through attached agencies including MWSS and LWUA and other urban water utilities ensures sewerage and sanitation facilities and efficient and safe collection, treatment, and disposal of sewage within jurisdiction. (Section 22(a))
DA coordinates with DENR in formulating guidelines for reuse of wastewater for irrigation and agricultural uses and for preventing/control/abatement of agricultural and aquaculture pollution, and non-point sources are categorized/defined under the Act. (Section 22(a))
BFAR (DA) is primarily responsible for preventing and controlling water pollution for fisheries and aquatic resources development, management, and conservation. (Section 22(a))
DOH promulgates, revises, and enforces drinking