The following projects and undertakings are covered bythe EIS System:

Section 3.0 (v), Article I Project or Undertaking, defined.

(v) Project or Undertaking - any activity, regardlessof scale or magnitude, which may have significant impact onthe environment.

NOTES:

The EIS system covers projects and undertakingscategorized as Environmentally Critical Projects (ECPs) andprojects located in Environmentally Critical Areas (ECAs).These projects can not proceed unless an EnvironmentalCompliance Certificate (ECC) is issued by the Department ofEnvironment and Natural Resources (DENR).

Section 3.0 (h), Article I Environmentally Critical Project(ECP)

(h) Environmentally Critical Project (ECP) - a project thathas high potential for significant negative environmentalimpact and is listed as such under Presidential ProclamationNo. 2146, series of 1981 and Pres. Proc. No. 803, series of1996, as well as other projects which the President mayproclaim as environmentally critical in accordance with Section 4 of PD 1586.

Under each category, there is a sub-category ofEnvironmentally Critical Projects (ECPs). This sub-categoryis, however, not exclusive and may be further expanded bythe DENR from time to time. Rapid technological advancementmakes it impossible to name all potential projects that mayhave significant negative impact on the environment. Inexercising its sound judgment and discretion, the DENR shallapply a liberal interpretation of the law on coverage,taking into consideration the rationale of the EIS System,it shall use the � significant impact on the quality of theenvironment� test as stated in PD 1152 and PD1586.

In order to guide project proponents, the following sub-category of projects and undertakings shall be considered asan ECP:

1. Heavy Industries
   1. Non-Ferrous Metal Industries

      �Non-ferrous metal industries� shall refer to the organized and coordinated arrangement of manufacturing processes designed to prepare, smelt or process non- ferrous metals into marketable products.

      This classification shall include projects characterized by any of the following specifications:

      1. Having a designated annual rated capacity equal to or exceeding 3,000 metric tons product; or

      2. Will process toxic non-ferrous metals such as cadmium, chromium and lead.

   2. Iron and Steel Mills

      �Iron and steel mill projects� shall refer to the organized and coordinated arrangement of manufacturing processes designed to prepare and/or smelt or process iron ores, steel scrap and/or primary iron and steel mill products into marketable products.

      This classification shall include projects characterized as having a designed annual rated capacity equal to or exceeding 30,000 metric ton products.

   3. Petroleum and Petrochemical Industries

      �Petroleum and Petrochemical Industries� shall refer to the organized and coordinated arrangement of manufacturing processes designed to physically and/or chemically transform petroleum and its derivatives into marketable products.

      This classification shall include projects falling under any of the following specifications:

      1. Refineries with designed capacities equal to or exceeding 30,000 barrels of petroleum per year; or

      2. Petrochemical industry projects with designed annual rated capacities of 30,000 tons.

   4. Smelting Plants

      �Smelting plant projects� shall refer to the organized and coordinated arrangement of manufacturing processes designed to smelt metals or alloys and cast the same into some special form.

      This classification shall include projects falling under any of the following specifications:

      1. Having a designed annual rated capacity equal to or exceeding 15,000 metric tons raw materials; or

      2. Will process toxic non-ferrous metals such as cadmium, chromium and lead.

2. Resource Extractive Industries
   1. Major Mining and Quarrying Projects

      Major mining and quarrying projects shall refer to projects involving the extraction and processing of metals, metalliferous ores, fuel, precious stones, clays, fertilizers and other earth-based materials on a commercial scale and are characterized by any or a combination of the following:

      1. Ore-processing by cyanidization, flotation, mechanized grinding, crushing, magnetic separation and/or mechanized gravity concentration;

      2. Utilization of the open-pit method with mechanical operations, blasting, or both;

      3. Underground mining using blasting, mechanized extraction or both;

      4. Marine off-shore mining

      5. Transport of oil, gas and other earth-based materials through pipelines; or

      6. Extraction of oil and gas.

      Without prejudice to the supplemental guidelines that may be issued by the DENR Secretary pursuant to Section 3(1), Article VII of DAO 96-37, it is noted that the New Mining Act of 1995 (Rep. Act No. 7942) and DENR Admin. Order No. 96-40 implementing the New Mining Law specifically provide for projects or project phases that require the issuance of an ECC.

      Section 70 of Rep. Act No. 7942 clearly states that, �Except during the exploratory period of a mineral agreement, or Financial or Technical Assistance Agreement, or exploratory permit, an Environmental Compliance Certificate is required based on the EIA system and the Local Government Code.�

      The Implementing Rules and Regulations of the New Mining Act (DAO 96-40) further clarified that an ECC is no longer required during the exploratory phase of major mining projects. In lieu thereof, mining proponents are required to submit before the Mines and Geo-Sciences Bureau (MGB) an Environmental Work Program (EWP).

      In all other phases and prior to the development, construction, and utilization of resources covered by applications for mineral agreements and financial or technical assistance agreements (FTAA), the issuance of an ECC is required. The ECC shall be the basis for the consequent preparation of the project�s Environmental Protection and Enhancement Program (EPEP) under DAO 96-40. For purposes of DAO 96-37, these types of applications are considered as ECPs.

      An ECC is similarly required before any quarrying activity, or any extraction, removal and disposition of sand and gravel, or guano and gemstone resources may be undertaken by its applicants. For purposes of coverage as an ECP, these activities must be undertaken within an area that is at least 50 hectares, or the volume of extraction must be at least 100,000 cu.m. Otherwise, these projects may be considered as projects within an Environmentally Critical Area (ECA).

      This classification also includes cement plant having designed annual rated capacity equal to or exceeding 30,000 metric tons products.

   2. Forestry Projects
      1. Logging Projects

         Logging projects shall refer to the cutting and harvesting of timber on a commercial scale.

      2. Major Wood Processing Projects

         Major Wood Processing shall refer to the processing of logs and other forest raw materials into finished or semi-finished products.

         This classification shall include, among others:

         1. sawmills
         2. wood manufacturing/processing plants producing veneer, plywood, wall board, blockboard, crates, etc.
         3. pulp and paper mills.

      3. Introduction of Fauna in Public/Private Forests

         This shall refer to the introduction of exotic species of flora and fauna to private or public forests.

      4. Forests Occupancy

         This shall refer to tenure-related, livelihood projects, and associated management projects within public forest lands as defined under PD 705. However, the occupancy of indigenous communities within areas claimed as ancestral lands or domains or areas certified as such (CALC/CADC) pursuant to DENR Adm. Order No. 2, series of 1993 shall not be considered as forest occupancy projects.

      5. Extraction of Mangrove Products

         This shall refer to the cutting and gathering of mangrove timber and its products for commercial purposes.

      6. Grazing Projects

         This shall refer to the management of forest range resources for forage productivity needed to support livestock production.

         Grazing projects shall be considered critical if such will exceed the natural grazing capacities of the areas involved (1 head per hectare)

         By virtue of Section 3.0 (1), Article V of DAO 96- 37, supplemental guidelines for major forestry projects, such as those involving applications for Industrial Forestry Management Agreements (IFMA), Socialized Industrial Forestry Management Agreements (SIFMA), and orher Community-Based Forestry Projects are currently being drafted to address the peculiar aspects of the forestry sector. Existing forestry- related policies expressly require the issuance of an ECC prior to commencement of these projects.

   3. Dikes for/ and Fishpond Development Projects

      This refers to natural or artificial water impoundment involving dike construction for purposes of raising fries (milkfishes, prawns, crabs, etc.) or salt production, and harvesting the same at marketable size and quantities.

      Fishpond development projects shall be considered critical if such will involve utilization of areas equal to or greater than 25 hectares.

3. Infrastructure Projects
   1. Major Dams

      This shall refer to all impoundment structures and appurtenances with storage volumes equal to or exceeding 20 million cubic meters.

   2. Major Power Plants This refers to power generating plants, transmission and distribution systems (substations) utilizing, or are run by, fossil fuels, geothermal resources, the nuclear fission process, natural river discharge, pondage or pump storage.

      This classification shall include all nuclear power plants, all geothermal power plants, waste-to- energy facilities, thermal power plants with rated capacities equal to or exceeding 10 megawatts and hydroelectric power plants or any other non- conventional power projects with rated capacities equal to or exceeding 60 megawatts.

   3. Major Reclamation Projects

      This refers to projects which involve the filling or draining of areas (foreshore, marshes, swamps, lakes, rivers, etc.) equal to or exceeding one (1) hectare.

   4. Major Roads and Bridges

      This refers to the construction of all national and provincial roads, railways, flyovers, expressways, railroads, tunnels, and bridges, or any significant extension, expansion, widening or improvement thereof.

   5. Major Ports and Harbors

      This refers to the construction, significant extension, expansion, widening or improvement of all national and international airports, seaports, and harbors.

   6. Waste Disposal Facilities

      This refers to landfills, septic tank sludge disposal sites, incinerators, toxic wastes disposal sites, transfer stations and other similar project or activities with annual rated capacity in excess of 150,000 metric tonnes.

   7. Major Flood Control Projects c/o DPWH

   8. Industrial Estates, Large Commercial Buildings and Real Estate Projects

      Industrial estates refer to industrial parks, industrial estates, special economic zones, regional industrial centers and other such areas or projects regardless of area.

      Large commercial buildings refer to condominiums, malls, hotels, condotels, and other such structure whose total floor area exceeds 10,000 square meters or with a height of more than ten (10) storeys.

      Real estates projects refer to subdivision, housing projects, theme parks, cemetery of memorial parks, mixed use projects and other such project or activities which covers a land area in excess of ten (10) hectares.

(g) Environmentally Critical Area - an area that isenvironmentally sensitive and is so listed underPresidential Proclamation No. 2146, series of 1981 as wellas other areas which the President may proclaim asenvironmentally critical in accordance with Section 4 of PD1586.

Section 1.0(b), Article II Projects located inEnvironmentally Critical Areas (ECAs)

1. All areas declared by law as national parks, watershed reserves, wildlife preserves, and sanctuaries;

2. Areas set aside as aesthetic potential tourist spots;

3. Areas which constitute the habitat for any endangered or threatened species of indigenous Philippine wildlife (flora and fauna)

4. Areas of unique historic archeological or scientific interest

5. Areas which are traditionally occupied by cultural communities or tribes (indigenous cultural communities)

6. Areas frequently visited and/or hard-hit by natural calamities (geologic hazards, floods, typhoons, volcanic activity, etc.)

7. Areas with critical slopes

8. Areas classified as prime agricultural lands

9. Recharged areas of aquifers

10. Water bodies characterized by one or any combination of the following conditions:
    1. tapped for domestic purposes
       
    2. within the controlled and/or protected areas declared by appropriate authorities
       
    3. which support wildlife and fishery activities

11. Mangrove areas characterized by one or any combination of the following conditions:
    1. with primary pristine and dense young growth
       
    2. adjoining mouth of major river systems
       
    3. near or adjacent to traditional productive fry or fishing grounds
       
    4. which act as natural buffers against shore erosion, strong winds and storm floods
       
    5. on which people are dependent for their livelihood

12. Coral reefs characterized by one or any combination of the following conditions:
    1. with fifty percent (50%) and above live corraline cover
       
    2. spawning and nursery grounds for fish
       
    3. which act as natural breakwater of coastlines.
       

As in the case of ECPs, the DENR is also expected toexercise its sound judgment and sound discretion indetermining which projects are located within ECAs. Inexercising such function, the DENR shall apply a liberalinterpretation of the law on coverage, taking intoconsideration the rationale of the EIS system, and shall usethe significant impact on the quality of the environmenttest under PD 1152 and PD1586.

An area is environmentally critical under Section 1.0(b), Article II of DAO 96-37 if it exhibits any of thefollowing characteristics:

1. Areas declared by law as national parks, watershed reserves, wildlife preserves, and sanctuaries

   The laws referred to by this provisions are Pres. Decree No. 705, as amended, otherwise called as the �Revised Forestry Code�, Rep. Act No. 7586 or the National Integrated Protected Areas System (NIPAS) Act, and other issuances including international commitments and declarations.

   Section 3 of Pres. Decree No. 705 provides that:

   1. �National parks� shall refer to forest land reservations essentially of primitive wilderness character which have been withdrawn from settlement or occupancy and set aside as such, exclusively to preserve the scenery, natural and historic objects and the wild animals and plants therein; also, to provide enjoyment of these features in such a manner as will have them unimpaired for future generations. This classification shall include areas declared as national parks by statutes, such as Proclamation No, 634, 612, 55, etc.

   2. �Watershed Reserves� shall refer to forest land reservations established to improve the quality or condition of the water yield thereof or reduce sedimentation. This classification shall include all areas declared as national watershed reserves.

   3. �Wildlife preserves� shall refer to forest lands designated for the protection of game animals, birds and fishes and closed to hunting and fishing.

2. Areas set aside as aesthetic potential tourist spots

   Aesthetic potential tourist spots shall refer to areas declared and reserved by the Department of Tourism or other appropriate authorities for tourism development.

3. Areas which constitute the habitat for any endangered or threatened species of indigenous Philippine wildlife (flora and fauna)

   This refers to wilderness areas and areas such as Mt. Bako, Mt. Apo, etc., which are natural habitats of endangered or threatened, rare and indeterminate species of flora and fauna.

   1. Indeterminate species shall refer to plant or animal species which are apparently endangered but where insufficient data are currently available for a reliable assessment.

   2. Threatened species shall refer to any plant or animal species which is likely to become endangered species within the foreseeable future throughout all or just a significant portion of its range.

   3. Rare species shall refer to plant or animal species which are not under immediate threat of extinction but occurs in small numbers.

   4. Endangered species shall refer to plant or animal species which are actively threatened with extinction and whose survival are unlikely without protective measures.

4. Areas of unique historic, archeological, geological, or scientific interests

   Areas of unique historic, archeological, or scientific interest refer to military and non-military shrines which are of cultural, historical, and scientific significance to the nation.

   This classification includes national historical landmarks, geological monuments, and paleontological and anthropological reservations as may be designated or determined by the National Historical Commission, National Museum, National Commission for Culture and the Arts, National Commission on Geological Sciences, and other appropriate authorities.

5. Areas which are traditionally occupied by cultural communities or tribes

   This refers to all ancestral lands of National Cultural Communities identified in Sec. 1 of P.D. No. 410 and settlements designed, implemented and maintained by the PANAMIN for national minorities (non- Muslim hill tribes referred to in P.D. No. 719).

   This also refers to all areas that are occupied or claimed as ancestral lands or ancestral domains by indigenous communities, or certified as such (CADC/CALC) pursuant to DENR Admin. Order No. 2, series of 1993 regarding identification and delineation of ancestral land or domain claims.

6. Areas frequently visited and or hard-hit by natural calamities (geologic hazards, floods, typhoons, volcanic activity, etc.)

   The area shall be so characterized if any of the following conditions exist:

   1. Areas frequently visited or hard-hit by typhoons

      This shall refer to all areas where typhoon signal no. 3 was hoisted for at least twice a year during the last five (5) years prior to the year of reckoning. For example, a determination made in July 1997 will consider the weather records from 1992 to 1996.

   2. Areas frequently visited or hard-hit by tsunamis

      This shall refer to all coastal zones and offshore areas subjected to an earthquake of at least intensity VII in the Rossi-Forel scale and hit by tsunamis during the period 1638 until year of reckoning. For example, a determination made in December 1997 will consider records from 1638 to 1997.

   3. Areas frequently visited or hard hit byearthquakes

      This shall refer to all areas subjected to earthquakes of at least intensity VII in the Rossi- Forel scale during the period 1949 until year of reckoning.

   4. Storm surge-prone areas

      This refers to all areas identified as such by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).

   5. Flood-prone areas

      This shall refer to low-lying areas usually adjacent to large active water bodies experiencing regular or seasonal inundation as a result of changes in mean water level of these water bodies.

   6. Areas prone to volcanic activities

      This refers to all areas identified as such by Philippine Institute of Volcanological Studies (PHIVOCS).

   7. Areas located along fault lines or within fault zones

      This refers to all areas identified as such by Philippine Institute of Volcanological Studies (PHIVOCS).

   8. Drought-prone areas

      This refers to all areas identified as such by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).

7. Areas with critical slope

   This shall refer to all lands with slope of 50% or more not classified in this listing as environmentally critical.

   This classification shall also cover alienable and disposable forest lands and unclassified forests.

8. Areas classified as prime agricultural lands

   Prime agricultural lands shall refer to all irrigated and irrigable areas and other areas mapped under the Network of Protected Areas for Agriculture (NPAA) of the Bureau of Soils and Water Management (BSWM). The NPAA Guide covers all regions of the country and available in a 1:50,000 scale at the Agricultural Land Management and Evaluation Division (ALMED), BSWM.

9. Recharged areas of aquifers

   Recharged areas of aquifers shall refer to sources of water replenishment where rainwater or seepage actually enters the aquifers.

   Areas under this classification shall be limited to all local or non-national watersheds and geothermal reservations.

10. Waterbodies

    Waterbodies shall refer to waters which are tapped for domestic purposes, within the controlled or protected areas declared by the appropriate authorities and which support wildlife and fishery activities.

11. Mangrove Areas

    Mangrove areas are tidal areas covered by salt- tolerant, intertidal tree species.

    This classification shall refer to areas declared as mangrove swamp forest reserves by Proclamation No. 2152 and mangrove forests declared as wilderness areas by Proclamation No. 2151.

12. Coral Reefs

    Coral reefs shall refer to areas characterized by the assemblage of different types of marine plants and organisms belonging to Phylum Coelenterata.

    This classification shall include all areas identified by local sources such as the Marine Sciences Center or UP-NSRC, MNR, NRMC, etc. to be rich harvest grounds for commercial varieties of corals.

    
    

Environmental Compliance Certificate (ECC) - thedocument issued by the DENR Secretary or the RegionalExecutive Director certifying that based on therepresentations of the proponent and the preparers, asreviewed and validated by the Environmental ImpactAssessment Review Committee (EIARC), the proposed project orundertaking will not cause a significant negativeenvironmental impact; that the proponent has complied withall the requirements of the EIS system, and that theproponent is committed to implement its approvedEnvironmental Management Plan in the Environmental ImpactStatement or mitigation measures in the InitialEnvironmental Examination.

NOTES:

All projects or undertakings falling within thecategory of Environmentally Critical Project (ECP) orprojects within Environmentally Critical Areas (ECAs) arerequired to first secure an Environmental ComplianceCertificate (ECC) prior to construction and operation.

An ECC is not an ordinary government permit. Itsissuance should always be understood in the context of theplanning, regulatory and management aspects of the entireEIS system. Hence, the responsibility of the proponentcontinues even after an ECC is secured from the DENR.

Nonetheless, there are certain related permits which aproponent may need to secure from other government entitiesas part of the documents or annexes of the EnvironmentalImpact Statement (EIS) or Initial Environmental Examination(IEE), or as a pre-requisite to project operation which mayform part of the conditions of an ECC. Some agencies askfor approved ECCs prior to their issuance of the relevantpermit. Other entities require such permits independentlyof the EIA process and as part of their licensing authority.

For example, locational clearances are required to besecured from the Housing and Land Use Regulatory Board(HLURB), Laguna Lake Development Authority (LLDA),Metropolitan Manila Authority (MMA), and Philippine PortsAuthority (PPA) in appropriate cases falling within theirjurisdiction. For proposed projects which may result tochange or conversion of land use, certificates ofeligibility for conversion and/or land conversion must besecured from the Department of Agriculture and theDepartment of Agrarian Reform, respectively.

Section 3.0, Article II EIS/IEE for Covered Projects orUndertakings

If a project is considered an ECP, the proponent shallbe required to prepare an Environmental Impact Statement(EIS). If the project is located within an ECA, theproponent shall be required to submit an InitialEnvironmental Examination (IEE), without prejudice to thesubmission of an EIS as may be further required by theRegional Executive Director. In the alternative, theproponent of a project within an ECA may, at its option,submit an EIS as provided in Section 29, Article III.

Section 3.0(m), Article I Environmental Impact Statement(EIS)

(m) Environmental Impact Statement (EIS) - thedocument(s) of studies of the environmental impacts of aproject including the discussions on direct and indirectconsequences upon human welfare and ecological andenvironmental integrity. The EIS may vary from project toproject but shall contain in every case all relevantinformation and details about the proposed project orundertaking, including the environmental impacts of theproject and the appropriate mitigating and enhancementmeasures.

Section 3.0(r), Article I Initial Environmental Examination(IEE)

(r) Initial Environmental Examination (IEE) - thedocument required of proponents describing the environmentalimpact of, and mitigation and enhancement measures for,projects or undertakings located in an ECA. The IEE shallreplace the Project Description required under DAO 21,series of 1992.

NOTES:

Proponents who wish to undertake a project that isconsidered as an ECP, regardless of location, must preparean Environmental Impact Statement (EIS). The EIS issubmitted to the Environmental Management Bureau (EMB) asthe primary basis for the review and eventual issuance ordenial of an ECC by the DENR Secretary. In general, it isthe Environmental Management Bureau (EMB) that isresponsible for implementing the EIS system for ECP.

On the other hand, proponents whose projects arelocated within ECAs are generally required to submit anInitial Environmental Examination (IEE) to theEnvironmental Management and Protected Areas Sector (EMPAS)of the DENR Regional Office where the ECA and the projectare proposed to be situated.

The submission of an IEE does not however preclude theRegional Executive Director (RED) from further requiringthe proponent to submit an EIS pursuant to Section 23(b) ofDAO 96-37. The RED may eventually order the proponent tosubmit an EIS to the Regional Office if the proposedproject has high potential to cause significant negativeenvironmental impact or has a scale and magnitude that anEIS becomes a more appropriate document that should besubmitted.

Further, proponents of projects within ECAs, for thesame reasons as above, may immediately opt to prepare andsubmit an EIS to the DENR Regional Office in lieu of anIEE.

The following criteria, among others, shall guideproponents and the DENR RO in determining whether a projectin an ECA will be required to submit an EIS instead of an IEE:

• � significant environmental impacts have not been adequately addressed by proposed mitigation and enhancement measures;

• � strong public opposition or low social acceptability;
• � high risk to public safety, welfare and health;

• � use of significant amount of highly pollutive substances producing toxic or hazardous wastes; or

• � significant socio-cultural impacts.

• � heavy industries: chemical industries, food processing industries, rubber and other resin processing industries, distilleries and fermentation industries, refineries, and textile industries whose annual rated capacities are equal to or exceeds 10,000 metric tons.

• � infrastructure projects: municipal roads and bridges that traverse areas with critical slopes or will involve cutting of trees.

Section 2.0 Non-Coverage

The following projects and undertakings are notcovered by the EIS system:

1. Projects which are not considered as environmentally critical or located within an ECA;

2. ECPs or projects within ECAs which were operational prior to 1982 except in cases where their operations are expanded in terms of daily production or area, or the process is modified;

3. Countryside business and barangay entities (CBBEs) covered by Republic Act No. 6810, otherwise known as the Magna Carta for Countryside and Barangay Business Enterprises (Kalakalan 20), and registered with the Department of Trade and Industry between 1991 to 1994, inclusive. Provided that, unless otherwise amended by law, non-coverage of such CBBEs shall only subsist for a five (5)-year period beginning from its date of registration.

Non-coverage within the EIS System means thatproponents of projects cited under the foregoing provisionare no longer expected to go through the process outlinedin DAO 96-37 and this Procedural Manual for proponents ofECPs and projects within ECAs.

Projects that are not covered by the EIS system may beissued a Certificate of Non-Coverage by the EnvironmentalManagement Bureau (EMB) or the DENR Regional Office, as thecase may be, upon request made by a proponent.

Considering that Section 3(v), Article I of DAO 96-37defines a �project or undertaking� as �any activity,regardless of scale or magnitude, which may havesignificant impact on the environment�, a simple screeningprocedure will be observed to determine whether a projectis truly not covered by the EIS System and therefore itsproponent is entitled to the issuance of a Certificate ofNon-Coverage.