Reorganization of Ministry of Environment, Energy and Natural Resources

Constitutional basis and declared intent

The reorganization is mandated by Article II, Section 1(a) and Article III of the Freedom Constitution.
Executive Order No. 131 directs changes in organizational and functional structures to promote efficiency and effectiveness in the delivery of public services pursuant to Executive Order No. 5 (1986).
The reorganization strengthens the Ministry to increase capacity to carry out powers and functions related to demands of economic recovery through administration, management, development, conservation, regulation, and proper use of natural resources.
The Executive Order affirms the need for a line agency for unified and coordinated formulation and supervision of energy resource development.
The Executive Order recognizes the strategic importance of energy requirements and establishes an integrated planning and supervision approach toward comprehensive energy program goals, including energy self-reliance and judicious conservation and efficient utilization of resources.

State policy and mandate

Section 3 declares state policy to ensure judicious use, development, management, renewal, and conservation of forests, minerals, land, water (including marine waters), and other natural resources, including protection and enhancement of environmental quality.
Section 3 declares state policy to ensure equitable access to development and use of natural resources for present and future generations.
Section 3 declares state policy to recognize and apply the importance of energy and natural resources relative to their utilization, development, and conservation.
Section 3 declares state policy to ensure continuous, adequate, and economic supply of energy, culminating in energy self-reliance, through intensive exploration and development of indigenous energy resources and through judicious conservation and efficient utilization consistent with accelerated economic growth.
Section 4 mandates the Ministry as the primary government agency responsible for conservation, management, development, and proper use of energy and natural resources.
Section 4 defines “natural resources” to include forest and grazing lands, water, mineral resources (including those in reservation and watershed areas), and lands of the public domain.
Section 4 defines “energy resources” to include fossil fuels (petroleum, coal, natural gas and gas liquids), nuclear-fuel resources, geothermal resources, hydroelectric resources, and existing and potential non-conventional energy resources.
Section 4 directs the Ministry to be responsible for exploration, development, marketing, distribution, storage, efficient utilization, licensing, and regulation of energy and natural resources as provided by law, to ensure equitable sharing of benefits for the welfare of present and future generations.

Ministry powers, functions, and objectives

Section 5(a) requires the Ministry to advise the President on promulgation of laws relative to development, use, regulation, and conservation of energy and natural resources.
Section 5(b) requires the Ministry to formulate, implement, and supervise government policies, plans, and programs on management, conservation, development, use, and replenishment of energy and natural resources.
Section 5(c) directs the Ministry to encourage, guide, and where necessary, regulate business activities related to exploration, exploitation, development, extraction, importation, exportation, transport, marketing, distribution, storage of fossil, nuclear, geothermal, hydroelectric, and non-conventional energy forms, and to prescribe and collect reasonable fees.
Section 5(d) requires the Ministry to promulgate rules and regulations (in accordance with law) governing exploration, development, conservation, extraction, disposition, use, and other commercial activities tending to cause depletion and degradation of natural resources.
Section 5(e) authorizes supervision and control over forest lands, alienable and disposable lands, mineral and energy resources, with authority to impose appropriate taxes, fees, charges, rentals, and levies for use, occupation, or exploitation.
Section 5(f) mandates the Ministry to undertake exploration, assessment, classification, and inventory using ground surveys, remote sensing, and complementary technologies.
Section 5(g) directs the Ministry to promote proper and mutual consultation with the private sector for energy and natural resources development, use, and conservation.
Section 5(h) authorizes issuance of licenses and permits for activities related to use and development of aquatic resources, treasure hunting, salvaging of sunken vessels, and other similar activities.
Section 5(i) mandates geological surveys of the whole country including territorial waters.
Section 5(j) requires establishment of policies and implementation of programs for:
- Accelerated inventory, surveys, and classification of lands, forest, and mineral resources using appropriate technology for accurate assessment of resource quality and quantity.
- Equitable distribution of natural resources through judicious administration, regulation, utilization, development, and conservation of public lands, forest, water, and mineral resources (including mineral reservation areas) to benefit a greater number of Filipinos.
- Promotion, development, and expansion of natural resource-based industries.
- Preservation of cultural and natural heritage through wildlife conservation and segregation of national parks and other protected areas.
- Maintenance of a wholesome natural environment by enforcing environmental protection laws.
- Encouragement of greater people participation and private initiative in natural resource management.
Section 5(k) requires the Ministry to promulgate rules and regulations to:
- Accelerate cadastral and emancipation patent surveys, land use planning, and public land titling.
- Harness forest resources sustainably to assist rural development, support forest-based industries, provide raw materials, while keeping adequate reserves for environmental stability.
- Expedite mineral resources surveys, promote production of metallic and non-metallic minerals, and encourage mineral marketing.
- Assure conservation and judicious and sustainable development of aquatic resources.
Section 5(l) requires the Ministry to assess, review, and provide direction (in coordination with concerned agencies) to energy research and development programs, including identification of energy sources and determination of commercial feasibility.
Section 5(m) requires regulation of development, disposition, extraction, exploration, and use of forest, land, water, and mineral resources.
Section 5(n) assigns responsibility to the Ministry for assessment, development, protection, licensing, and regulation (where applicable) of energy and natural resources; regulation and monitoring of service contractors, licensees, lessees, and permits for extraction, exploration, development, and use of natural resources products; implementation of programs and measures promoting close collaboration between government and private sector; effective and efficient classification and sub-classification of public domain lands; and enforcement of energy and natural resources and environmental laws, rules, and regulations.
Section 5(o) requires promulgation of rules, regulations, and guidelines on issuance of licenses, permits, concessions, lease agreements, and other privileges regarding development, exploration, utilization of marine, freshwater, and brackish water and overall aquatic resources; continuing oversight, supervision, and policing of natural resources; and authority to cancel or cause cancellation upon failure, non-compliance, violations, and other causes in furtherance of conservation and supportive of national interests.
Section 5(p) authorizes the Ministry to exercise other powers and functions and perform acts necessary, proper, or incidental to attain mandates and objectives.
Section 4 establishes policy objectives guiding policy formulation:
- Assure availability and sustainability through judicious use and systematic restoration or replacement whenever possible.
- Increase natural resource productivity to meet demands of a growing population.
- Enhance contribution of energy and natural resources for national economic and social development.
- Promote equitable access by different population sectors.
- Conserve specific terrestrial and marine areas representative of natural and cultural heritage for present and future generations.

Reorganization and abolition of energy ministry

Section 2 structurally and functionally reorganizes the Ministry of Natural Resources into the Ministry of Environment, Energy and Natural Resources.
Section 2 abolishes the Ministry of Energy.
Section 2 transfers all pertinent functions of the abolished Ministry of Energy, together with applicable appropriations, records, equipment, and personnel, to the reorganized renamed Ministry.
Section 2 directs that the reorganized Ministry is “hereinafter referred to as the Ministry.”
Section 29 provides that no change in the reorganization prescribed is valid except upon prior approval of the President for efficiency and effectiveness in delivery of public services.
Section 31 directs the Minister to issue orders, rules, regulations, and other issuances necessary for effective implementation.

Leadership and internal offices structure

Section 7 vests authority and responsibility for the Ministry’s mandate and powers in the Minister of Environment, Energy and Natural Resources.
The Minister is appointed by the President and exercises supervision and control over the Ministry.
Section 7 requires the Minister to:
- Advise the President on promulgation of rules, regulations, and other issuances on conservation, management, development, and proper use of natural resources.
- Establish policies and standards for efficient and effective operations in accordance with government programs.
- Promulgate rules, regulations, and other issuances necessary to carry out the Ministry’s mandate, objectives, policies, plans, programs, and projects.
- Exercise supervision and control over all Ministry functions and activities.
- Delegate authority for performance of administrative or substantive functions to Deputy Ministers or other officers of rank.
- Perform other functions provided by law or assigned by the President.
Section 9 provides that the Minister is assisted by five (5) Deputy Ministers, appointed by the President upon recommendation of the Minister, with these areas:
- Energy and Environment; Natural Resources; Field Operations; Legal and Support Services; Policy and Planning.
Section 9 assigns each Deputy Minister duties including advising on issuances, supervising and controlling units/offices/employees under responsibility, promulgating rules consistent with Ministry policies, coordinating with other units across deputy areas, and exercising delegated authority in substantive/administrative matters to the extent granted by the Minister.
Section 10 provides for seven (7) Assistant Ministers, appointed by the President upon recommendation of the Minister, responsible for:
- Planning and Project Management; Foreign Funded and Special Projects; Luzon field office; Visayas field office; Mindanao field office; Management Services; Legal Services.
Section 6 establishes that the Ministry consists of the Ministry Proper with five (5) Offices and staff sectoral bureaus.
Section 6 lists the Ministry Proper Offices as:
- Office of Energy and Environment; Office of Natural Resources; Office of Field Operations; Legal and Support Services; Office of Policy and Planning.
Section 6 lists staff sectoral bureaus as:
- Forest Management Bureau; Land Management Bureau; Mines and Geo-Sciences Bureau; Environmental Protection Bureau; Energy Development Bureau; Energy Utilization Bureau.
Section 8 establishes that the Office of the Minister consists of the Minister and immediate staff.

Specific office functions and bureau integrations

Section 11 creates the Office of the Deputy Minister for Natural Resources, which assists and advises the Minister on natural resources issuances, sets policies/standards, promulgates natural-resources rules, supervises natural-resources bureaus/offices, and delegates administrative/substantive functions to Assistant Ministers or officials of rank.
Section 11A creates the Office of the Deputy Minister for Environment and Energy, which assists and advises on energy/environment issuances, sets policies/standards, promulgates related rules, supervises relevant bureaus/offices, and delegates administrative/substantive functions.
Section 11B creates the Office of the Deputy Minister for Legal and Support Services and assigns it authority including:
- Issuances and oversight related to financial management, administrative services, human resources development, and legal services.
- Development and recommendation of personnel development/management/selection/placement/promotion standards and welfare services, including career and personnel development programs.
- Maintenance systems for communication, transportation, and printing services.
- Record/report filing systems; books of account; certification of fund availability including obligations; preparation and processing of payrolls and vouchers.
- Issuance of allotment advice supporting budget requirements per program/project.
- Methods and procedures for budget disbursement and cost/financial accounting and management.
- Continuation of Administrative and Finance Divisions of all bureaus as staff support coordinated by the Support Services Office.
Section 11C creates the Office of the Deputy Minister for Field Operations, headed by a Deputy Minister assisted by three (3) Assistant Ministers (Luzon, Visayas, Mindanao), tasked to oversee regional/field implementation and provide latest field information/data/statistics to the Office of Public Affairs when applicable, and to monitor execution of regional projects and activities of licenses/permittees/lessees involved in utilization of energy and natural resources.
Section 12 creates the Office of the Deputy Minister for Policy and Planning as the central coordinating unit for policy, planning, and project development/management, tasked to develop policy-planning frameworks, conduct resource policy analysis, institute monitoring/evaluation, coordinate official development assistance and foreign-assisted project implementation, establish contacts with foreign funding institutions, monitor international institutions/instrumentalities and trade movements affecting energy/natural resources, coordinate integration of proposed projects for local and foreign funding, coordinate information systems, and integrate applied research functions across bureaus (including forestry, mines, and land management institutes).
Section 12 transfers the Forest Research Institute (FORI) into the Natural Resource Research Office, which assembles and stores natural resources research outputs and promotes application of these outputs by Ministry clienteles.
Section 13 creates a Legal Services Office headed by an Assistant Minister, which advises and assists on legal matters; prepares recommendations/orders involving disposition, utilization, and development of public lands, forests, minerals, and other natural resources; reviews license/permit issuances and deeds of conveyance and sales and other transfers involving natural resources; and acts as counsel of the Ministry.
Section 14 creates the Public Affairs Office headed by a Director as the public information arm responsible for dissemination and response to public queries, and abolishes Public Affairs Offices of all bureaus with transfer of functions to the Public Affairs Office in accordance with Section 24(b).
Section 15 creates the Special Concerns Office headed by a Director, responsible for priority areas/subjects identified by the Minister requiring special and immediate attention.
Section 16 abolishes the Bureau of Forest Development (BFD) and the Wood Industry Development Authority (WIDA) and creates the Forest Management Bureau responsible for advising the Minister on forest development and conservation and for primary functions on protection/development/occupancy/management/conservation of forest lands and watersheds, reforestation/rehabilitation of critically denuded/degraded forest reservations, improvement of water resource use and development, development of national parks, preservation of wilderness areas/game refuges/wildlife sanctuaries/ancestral lands, development of forest plantations (including rattan, bamboo, other valuable non-timber resources), rationalization of wood-based industries, regulation of utilization/exploitation of forest resources including wildlife, monitoring and evaluation assistance, and other assigned functions.
Section 17 abolishes the Bureau of Lands and creates the Lands Management Bureau, which absorbs functions of the Human Settlements Regulatory Commission excluding those related to highly urbanized areas, advises the Minister on rational land management/disposition, and performs functions on policies/programs for alienable and disposable lands administration/surveys/management/disposition; advising regional offices on efficient public land management; assisting in monitoring/evaluation of land surveys/disposition; developing operating standards/procedures; and other assigned functions.
Section 18 abolishes the Bureau of Mines and Geo-Sciences, Gold Mining Industry Development Board, and the Mineral Reservations Board and creates the Mines and Geo-Sciences Bureau which absorbs those functions and performs functions related to mineral resources exploration/development/conservation and mining industry development, advising the Minister on granting mining rights and contracts, advising regional offices, monitoring/evaluation, developing operating standards/procedures, and other assigned functions.
Section 18A integrates and merges National Environmental Protection Council (NEPC), National Pollution Control Commission (NPCC), and Environmental Center of the Philippines (ECP) into a single bureau responsible for formulation, enforcement, and monitoring of an integrated program of natural resources conservation and environmental protection, and for formulation of policies/guidelines on environmental quality standards and impact assessments, and conservation of natural resources.
Section 18B provides for transfer of the Energy Utilization Bureau to the Ministry, advising the Secretary on energy utilization and performing functions on utilization policies/programs, regional office advice, plans/programs/operating standards, monitoring/evaluation of energy resources utilization, and other assigned functions.
Section 18C provides for transfer of the Energy Development Bureau to the Ministry, advising the Secretary on energy development and performing functions on development policies/programs, regional office advice, plans/programs/operating standards, monitoring/evaluation of energy resources utilization, and other assigned functions.

Attached and administratively-supervised agencies

Section 19 attaches to the Department (Ministry) the following agencies/corporations:
- National Mapping and Resource Information Authority.
- Manila Seedling Bank Foundation, Inc.
- Natural Resources Development Corporation.
- National Electrification Administration.
Section 19(a) integrates/merges the Natural Resources Management Center (NRMC), National Cartography Authority (NCA), Bureau of Coast and Geodetic Survey (BCGS), and Land Classification Teams based at the then Bureau of Forest Development into the National Mapping and Resource Information Authority as the central mapping agency providing map-making services, remote sensing research/services, remote sensing/vital data, cost-effective integration techniques, geographic information integration, and operation of information services and networks for natural resources data access/sharing across regions and provinces.
Section 19(b) directs Manila Seedling Bank Foundation, Inc to continue providing healthy tree seedlings and planting materials through seedling nurseries and seed orchards, accept tree planting contracts for agro-forest farms and tree plantations, and pilot-test innovative nursery and plantation development technologies adopted locally and internationally.
Section 19(c) integrates/merges NRDC, NDCPI, and National Coal Authority into Natural Resources Development Corporation under the direct supervision of the Minister, primarily promoting natural resource development and conservation through pioneering potentially viable production/use/marketing ventures using new/innovative technologies (including stumpage sales system, industrial forest plantation or logging operations, rattan tissue culture) with the proviso that activities competing with the private sector are not undertaken, and regulating/supervising processing of forest products and grading/inspection of lumber/processed products and monitoring movement of timber and other forest products.
Section 19(d) directs the National Electrification Administration to continue as a principal implementing arm of the Ministry for energy policy/program/plan components that cannot be carried out by the private sector.

Field offices, regional administration, and service delivery

Section 20 provides that the Ministry’s field offices are the Environment, Energy and Natural Resources Regional Offices in the thirteen (13) administrative regions, the Environment, Energy and Natural Resources Provincial Office in every province, and Community Office in every municipality whenever feasible.
Section 20 integrates and consolidates regional bureaus’ regional offices (Forest Development, Mines and Geo-Sciences, and Lands) into Ministry-wide Regional Environment, Energy and Natural Resources Office, directly under the supervision and control of the Deputy Minister for Field Operations.
Section 20 provides that a Regional Office is headed by a Regional Director and assisted by four (4) Assistant Regional Directors for Forestry, Lands Management, Mines and Aquatic Resources (where applicable), who are Career Executive Service Officers.
Section 21 grants regional offices functions including implementing Ministry laws/policies/plans/programs/projects/rules/regulations; providing efficient/effective service delivery; coordinating with other ministries/offices/agencies; coordinating with LGUs; recommending and implementing forestry/aquatic/minerals/land management and disposition programs/projects upon approval; conducting comprehensive natural resource inventories and formulating regional short- and long-term development plans; evolving regional budgets conforming to Regional Development Councils priorities; supervising processing of natural resources products and inspecting/monitoring movement; and performing other functions provided by law.
Section 21 absorbs into Ministry-wide regional offices major natural resources programs/projects previously managed by the then Bureau of Forest Development or other agencies, including Calauit Game Preserve and Wildlife Sanctuary, Presidential Committee on the Conservation of Tamaraw, Ninoy Aquino Parks and Wildlife Center, shares in Kabuhayan Program and Agro Forestry State Projects of KKK Processing Authority, all national parks/wildlife sanctuaries/game preserves previously managed by the Ministry of Human Settlements including National Parks Reservation situated in Bulacan, Rizal, Laguna and Quezon formerly declared as Bagong Lipunan Sites, Magat Forest Reservation, and Mt. Arayat National Park, formerly under the Ministry of Tourism.
Section 21 provides that provincial and community natural resource offices absorb, respectively, the functions of district offices of the bureaus abolished under Section 24(b), and that these provincial/community offices are headed by a provincial natural resource officer and community natural resource officer, respectively.

Energy and development transfers to Office of the President

Section 22 transfers from the abolished Ministry of Energy to the Office of the President direct supervision and control of:
- Philippine National Oil Company.
- National Power Corporation.

Revocation of certain energy/natural resources privileges

Section 23 revokes executive issuances, fiats (Presidential Decrees, Executive Orders, Letters of Instructions, Proclamations), and other issuances, contracts, concessions, permits, or other forms of privileges for exploration, exploitation, development, or utilization of natural resources issued to a certain person/entity beyond the constitutional limit during the last ten (10) years.
Section 23 provides that reverted lands become part of the public domain.
Section 23 directs that such issuances are thereafter subjected to review by the Minister to determine the most appropriate and beneficial land uses, followed by issuance of necessary orders/directives.

Transitory mechanisms and separation protections

Section 24(a) requires that transfer of a government unit includes functions, funds, records, equipment, facilities, choses in action, rights, other assets, and liabilities (if any), plus personnel, as necessary, who continue in hold-over capacity performing duties and receiving salaries/benefits unless separated pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
Section 24(a) provides that personnel whose positions are not included in the Ministry’s new position structure and staffing pattern approved/prescribed by the Minister or who are not reappointed are deemed separated and entitled to benefits provided in Section 25.
Section 24(b) requires transfers of abolished-unit functions to include appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, and personnel necessary for the transferred functions.
Section 24(b) directs that remaining appropriations/funds revert to the General Fund and remaining assets are allocated to appropriate units as determined by the Minister or disposed under the Government Auditing Code and other pertinent laws, with liabilities treated similarly under the Government Auditing Code and other pertinent laws.
Section 24(b) provides that personnel continue in hold-over capacity unless separated pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution, and personnel not included or not reappointed are deemed separated and entitled to the benefits in Section 25.
Section 24(c) requires inclusion of appropriations, funds, records, equipment, facilities, choses in action, rights, and assets and personnel for transfers that do not abolish the unit exercising the functions, with liabilities treated under the Government Auditing Code and other pertinent laws, and hold-over continuity unless separated under Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
Section 24(c) provides that personnel not included in the Ministry structure/staffing pattern or not reappointed are deemed separated and entitled to Section 25 benefits.
Section 24(d) provides that when there is abolition without transfer of functions, appropriations and funds revert to the General Fund, while records/equipment/facilities/choses in action/rights/other assets are allocated/disposed by the Minister under the Government Auditing Code and pertinent laws, with liabilities treated under the Government Auditing Code and pertinent laws, and personnel not included/not reappointed deemed separated with Section 25 benefits.
Section 24(e) provides for merger or consolidation: the new/surviving unit exercises functions and acquires appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, liabilities (if any), and personnel necessary, with hold-over continuity unless separated under Executive Order No. 17 (1986) or Article III of the Freedom Constitution, and personnel not included/not reappointed deemed separated with Section 25 benefits.
Section 24(f) provides that when termination of a function occurs without abolition of the performing unit, appropriations and funds intended to finance the function revert to the General Fund, while records/equipment/facilities/choses in action/rights/other assets used are allocated/disposed by the Minister under the Government Auditing Code and pertinent laws, with liabilities treated under the Government Auditing Code and pertinent laws, and personnel not included/not reappointed deemed separated with Section 25 benefits.

New staffing pattern timing and separation formula

Section 25 requires officers and employees of the Ministry to continue in hold-over capacity performing duties and receiving salaries/benefits unless separated under Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
Section 25 requires the Minister to approve and prescribe the new position structure and staffing pattern within one hundred and twenty (120) days from publication of the Executive Order.
Section 25 requires that authorized positions created be filled with regular appointments by the Minister or by the President as the case may be.
Section 25 provides that incumbents whose positions are not included in the approved structure or who are not reappointed are deemed separated from the service.
Section 25 provides that separated persons receive retirement benefits to which they may be entitled under existing laws, rules, and regulations.
Section 25 provides an additional separation payment formula: a separated person shall be paid the equivalent of one (1) month basic salary for every year of service in the government, or a fraction thereof, computed on the basis of the highest salary received, but with a cap that the payment shall not exceed the equivalent of twelve (12) months salary.
Section 25 prohibits courts and administrative bodies from issuing any writ of preliminary injunction or restraining order to enjoin separation/replacement of any officer or employee effected under the Executive Order.

Accountability, creditor notice, nomenclature change, and implementation

Section 26 requires the Ministry to formulate and enforce a system measuring and evaluating periodically and objectively the Ministry’s performance and to submit it annually to the President.
Section 27 requires creditor notice/consent where a reorganizational change prejudices third persons with rights recognized by law or contract such that notice to or consent of creditors is required under an agreement entered into with those creditors; notice or consent must be complied with prior to implementing the reorganizational change.
Section 28 provides that if a new Constitution adopts a Presidential form of government, the Ministry shall be called the Department of Natural Resources, and the