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Obtaining an Environmental Compliance Certificate for your Company’s Projects– Insights from Villar v. Alltech Contractors, Inc., G.R. No. 208702, May 11, 2021

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 


AT A GLANCE:

To strengthen the Philippine’s environment protection programs, the country’s laws provide that no entity shall operate any declared environmentally critical project or area without first securing an Environmental Compliance Certificate (ECC).

Currently, it is the Environmental Management Bureau that is authorized to issue ECCs. Furthermore, it is Department Administrative Order No. 2003-30  which provides the rules and requirements to obtain an ECC under the Philippine Environmental Impact System (EIS System). Relatedly, the case of Villar v. Alltech Contractors, Inc. enlightens on the documentary requirements under the EIS System.


 

To promote the Philippine government’s environment protection programs, Presidential Decree (PD) No. 1586 was enacted. The Decree declared, among others, that:

No person, partnership or corporation shall undertake or operate any such declared environmentally critical project or area without first securing an Environmental Compliance Certificate [or ECCs] issued by the President or his duly authorized representative.

 

Currently, it is the Environmental Management Bureau (EMB), under the Department of Environment and National Resources (DOST), that is authorized to issue ECCs. Furthermore, it is Department Administrative Order (DAO) No. 2003-30  which provides the rules and requirements to obtain an ECC under the Philippine Environmental Impact System (EIS System) established in P.D. No. 1586. Some of the notable points of this DAO are its provisions on which entities are covered under the EIS System, and the documentary requirements for securing an ECC.

 

Scope of the EIS System

In general, only projects that have the potential to significantly impact the environment are required to secure an ECC. In determining this, two factors are considered:

  1. The nature of the project and its potential to cause significant negative environmental impacts; and
  2. The  sensitivity or vulnerability of environmental resources in the project area. 

The specific criteria for determining projects or undertakings to be covered by the EIS System are as follows: 

  1. Characteristics of the project or undertaking;
  2. Location of the Project;
  3. Nature of the potential impact.

 

Documentary Requirements for the Issuance of ECC

Before an ECC is issued, applicants or proponents must submit the required documents under the EIS System. These documents primarily focus on the  information needed to assess critical environmental impacts of projects. Additionally, the documents required shall depend on the project categories under which a proposed project falls.

 

Insights from Villar v. Alltech Contractors, Inc.

The case of Villar v. Alltech Contractors, Inc., (G.R. No. 208702, May 11, 2021) is especially enlightening on the subject of documentary requirements under the EIS System. A handful of the important doctrines established by the Supreme Court in this case are as follows:

a. In securing an ECC, the proponent is required to submit a form of study depending on the classification of the proposed project under the EIS System. These reports include: 

  1. Environmental Impact Statement (EIS); 
  2. Programmatic EIS (PEIS); 
  3. Initial Environmental Examination (IEE) Report; 
  4. Initial Environmental Examination (IEE) Checklist; 
  5. Project Description Report (PDR); 
  6. Environmental Performance Report and Management Plan (EPRMP); and 
  7. Programmatic EPRMP (PEPRMP).

 

b. In comparing an EPRMP and an EIS, the EIS is wider in scope than an EPRMP.

However, it does not automatically mean that an EIS is the appropriate report to be submitted in all projects. DAO No. 2003-30 provides for the conditions to consider in requiring the submission of a specific environmental impact assessment report;

 

c. The enumeration in DAO No. 2003-30 of what projects may be required to submit an EPRMP is not an exclusive list. And, it is within the technical knowledge and expertise of the DENR-EMB to determine the appropriate environmental impact assessment report to submit for a particular project;

 

d. An ECC is not a permit to implement a project, and does not authorize the implementation of the proposed project. 

Rather, the ECC is a planning tool that imposes restrictions that the proponent must diligently observe to ensure that the right to a balanced and healthful ecology is protected. 

The proponent is expected to secure the necessary permits and clearances from all concerned government agencies prior to the implementation of the project. 

The proponent will have to ensure compliance with all the conditions and requirements outlined in the ECC before it may commence the implementation of the proposed project. 

 

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.

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