Penalties under Philippine EIS System

Applies to Environmentally Critical Projects (ECP) and other projects posing significant environmental risks such as hazardous waste disposal facilities and sanitary landfills.
Projects found operating without a valid ECC may be ordered closed through a Cease and Desist Order (CDO) after due process.
For projects posing immediate danger to life and property, a CDO shall be issued immediately.

Penalties have a maximum cap of Php 50,000, subject to reduction based on specific criteria:
1. Nature of ECC Application: 25% reduction if an ECC application was filed before issuance of Notice of Violation.
2. Percentage Completion: 10% reduction if project completion is ≤25%; 5% reduction if completion is >25% but <50%; no reduction if >50% completed.
3. Project Cost: 20% reduction if cost ≤ Php 5 million; 10% reduction if cost ≤ Php 10 million.
4. Environmental Impact: 25% reduction if the project causes no adverse environmental impact.
The total penalty reduction can only be up to 80% if all criteria are met.
Proponents must submit certified documentation to avail of penalty reductions; unverified certifications disqualify proponents from reductions.

Projects violating ECC conditions or Environmental Impact Statement (EIS) system rules may face suspension or cancellation of the ECC.
Imposition of fines not exceeding Php 50,000 for each violation.
Applies to projects classified as ECP and located in ECA.
Excludes telecommunication projects operating without ECC, which are governed under a separate memorandum circular.

This memorandum circular establishes the procedures and guidelines for fines and penalties under P.D. 1586.
Effective immediately upon adoption on November 25, 2002.

Issued by the Secretary of the Department of Environment and Natural Resources (DENR).
Recommended for approval by the EMB Director.