Environmental Impact Statement Philippines: EIS, ECC and the EIA System Explained

An environmental impact statement (EIS) in the Philippines is the document containing studies of a project's environmental impacts, including its direct and indirect consequences on human welfare and on ecological and environmental integrity. It is prepared under the Environmental Impact Assessment (EIA) system, the process of predicting the likely environmental consequences of a project and designing preventive, mitigating and enhancement measures. The EIS is reviewed as part of the requirements for an Environmental Compliance Certificate (ECC) — the document issued by the DENR Secretary or Regional Executive Director certifying that the project will not cause a significant negative environmental impact.

What the EIS and EIA system cover

Under DENR Administrative Order No. 96-40, s. 1996, the Environmental Impact Statement refers to the document(s) of studies on the environmental impacts of a project, including discussions on direct and indirect consequences upon human welfare and ecological and environmental integrity. The EIS may vary from project to project, but in every case it must contain all relevant information and details about the proposed project or undertaking, including the environmental impacts of the project and the appropriate mitigating and enhancement measures.

The Environmental Impact Assessment (EIA) is the process of predicting the likely environmental consequences of implementing projects or undertakings and designing appropriate preventive, mitigating and enhancement measures. The EIS is the written product of that process.

The same administrative order defines Environmental Impacts as the probable effects or consequences of proposed projects or undertakings on the physical, biological and socioeconomic environment, which can be direct or indirect, cumulative and positive or negative. This is why an EIS is not limited to pollution: it also addresses social and economic consequences.

The Environmental Compliance Certificate (ECC)

The ECC is the document issued by the Secretary or the Regional Executive Director certifying that, based on the representations of the proponent and the preparers (the proponent's technical staff or the competent professional group commissioned to prepare the EIS and related documents), as reviewed and validated by the Environmental Impact Assessment Review Committee (EIARC):

• the proposed project or undertaking will not cause a significant negative environmental impact;
• the proponent has complied with all the requirements of the Environmental Impact Assessment System; and
• the proponent is committed to implement its approved Environmental Management Plan in the Environmental Impact Statement or mitigation measures in the Initial Environmental Examination.

The ECC is therefore the government's written confirmation that the project may proceed on the environmental terms stated in the application.

EIS or IEE: which document applies

Not every project requires a full EIS. The Initial Environmental Examination (IEE) is the document required of proponents describing the environmental impact of, and mitigation and enhancement measures for, projects or undertakings located in an Environmentally Critical Area (ECA) as listed under Presidential Proclamation No. 2146, Series of 1981, as well as other areas which the President may proclaim as environmentally critical in accordance with Section 4 of P.D. No. 1586.

In practice, the EIA system sorts projects into categories: projects with significant potential impact undergo the full EIS process, while those in environmentally critical areas may be covered by an IEE. The ECC definition itself distinguishes between the approved Environmental Management Plan in an EIS and the mitigation measures in an IEE.

How the EIS connects to other environmental requirements

The EIS and ECC do not stand alone. The Philippine Clean Air Act of 1999 (Republic Act No. 8749) requires that, as part of the environmental management plan attached to the environmental compliance certificate pursuant to Presidential Decree No. 1586 and its rules, the DENR shall require program and project proponents to put up financial guarantee mechanisms to finance emergency response, clean-up or rehabilitation of areas that may be damaged during actual implementation. Liability for damages continues even after the program or project ends, where the damages are clearly attributable to it, for a period determined by the DENR and incorporated into the ECC.

Financial liability instruments may take the form of a trust fund, environmental insurance, surety bonds, letters of credit, or self-insurance, with the choice depending on the assessment of risks involved. Proponents required to put up these instruments must furnish the DENR with evidence of availment.

The Clean Air Act also allows the DENR to allocate emission quotas to pollution sources within a special airshed that qualify under an environmental impact assessment system programmatic compliance program, pursuant to the implementing rules and regulations of Presidential Decree No. 1586.

Why the EIA system matters for industrial projects

For manufacturing and industrial locators, the EIS process is the point at which environmental commitments become enforceable conditions. The ECC definition ties the proponent to its approved Environmental Management Plan or mitigation measures, and the financial guarantee requirement under the Clean Air Act ensures that funds exist for clean-up or rehabilitation if damage occurs.

The DENR Administrative Order No. 96-40 definition of Environment is broad: it covers the physical factors of human surroundings, including land, water, atmosphere, climate, sound, odors, tastes, biological factors of animals and plants, and social factors of aesthetics — and in a broad sense, economic, social, cultural, political and historical factors. An EIS prepared for an industrial project should therefore reflect impacts beyond emissions and effluent.

Frequently asked questions

Is an EIS the same as an ECC? No. The EIS is the study document containing the environmental impact assessment and proposed mitigation measures. The ECC is the certificate issued by the DENR Secretary or Regional Executive Director after review and validation, confirming compliance with the EIA system requirements.

When is an IEE required instead of an EIS? An Initial Environmental Examination is required for projects or undertakings located in an Environmentally Critical Area listed under Presidential Proclamation No. 2146, Series of 1981, or in other areas the President may proclaim as environmentally critical under Section 4 of P.D. No. 1586.

What does the EIS have to contain? It must contain all relevant information and details about the proposed project or undertaking, including the environmental impacts of the project and the appropriate mitigating and enhancement measures, covering direct and indirect consequences on human welfare and ecological and environmental integrity.

Practical takeaways

• The EIS is the study document; the ECC is the certificate issued after DENR review and validation by the EIARC.
• Projects in environmentally critical areas may require an IEE rather than a full EIS.
• The ECC binds the proponent to its approved Environmental Management Plan or mitigation measures.
• Under the Philippine Clean Air Act of 1999, proponents must put up financial guarantee mechanisms for emergency response, clean-up or rehabilitation, and liability can continue after project termination.
• The EIS should address physical, biological and socioeconomic impacts, not just pollution.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• DENR ADMINISTRATIVE ORDER NO. 96-40, S. 1996, December 20, 1996

• REPUBLIC ACT NO. 8749 - AN ACT PROVIDING FOR A COMPREHENSIVE AIR POLLUTION CONTROL POLICY AND FOR OTHER PURPOSES

• REPUBLIC ACT NO. 9275 - AN ACT PROVIDING FOR A COMPREHENSIVE WATER QUALITY MANAGEMENT AND FOR OTHER PURPOSES

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.