PRESIDENTIAL DECREE No. 1586

• Subject: ESTABLISHING AN ENVIRONMENTAL IMPACT STATEMENT SYSTEM INCLUDING OTHER ENVIRONMENTAL MANAGEMENT RELATED MEASURES AND FOR OTHER PURPOSES
• WHEREAS, the pursuit of a comprehensive and integrated environmental protection program necessitates the establishment and institutionalization of a system whereby the exigencies of socio-economic undertakings can be reconciled with the requirements of environmental quality; WHEREAS, the regulatory requirements of Environmental Impact Statement and Assessment instituted in pursuit of this national environmental protection program have to work into their full regulatory and procedural details in a manner consistent with the goals of the program.
• Section 1. Policy. - It is hereby declared the policy of the State to attain and maintain a rational and orderly balance between socio-economic growth and environmental protection.
• Section 2. Environmental Impact Statement System. - There is hereby established a Environmental Impact Statement System founded and based on the environmental impact statement required, under Section 4 of Presidential Decree No. 1151, of all agencies and instrumentalities of the national government, including governmentowned or controlled corporations, as well as private corporations, firms and entities for every proposed project and undertaking which significantly affect the quality of the environment.
• Section 3. Determination of Lead Agency. - The Minister of Human Settlements or his designated representative is hereby authorized to name the Lead Agencies referred to in Section 4 of Presidential Decree No. 1151, which shall have jurisdiction to undertake the preparation of the necessary environmental impact statements on declared environmentally critical projects and areas. All Environmental Impact Statements shall be submitted to the National Environmental Protection Council for review and evaluation.
• Environmentally Critical Areas and Projects

  Areas or projects in the Philippines declared as environmentally critical by the President
• Declaring Environmentally Critical Areas and Projects


  1. President of the Philippines may declare on own initiative or upon recommendation of the National Environmental Protection Council

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

  3. For the proper management of said critical project or area, the President may by his proclamation reorganized such government offices, agencies, institutions, corporations or instrumentalities including the realignment of government personnel, and their specific functions and responsibilities
• For the same purpose as above, the Ministry of Human Settlements shall: (a) prepare the proper land or water use pattern for said critical project(s) or area(s); (b) establish ambient environmental quality standards; (c) develop a program of environmental enhancement or protective measures against calamitous factors such as earthquake, floods, water erosion and others, and (d) perform such other functions as may be directed by the President from time to time.
• Section 5. Environmentally Non-Critical Projects. - All other projects, undertakings and areas not declared by the Presidents as environmentally critical shall be considered as non-critical and shall not be required to submit an environmental impact statement. The National Environmental Protection Council, thru the Ministry of Human Settlements may however require non-critical projects and undertakings to provide additional environmental safeguards as it may deem necessary.
• Section 6. Secretariat. - The National Environmental Protection Council is hereby authorized to constitute the necessary secretariat which will administer the Environmental Impact Statement System and undertake the processing and evaluation of environmental impact statement.
• Section 7. Management and Financial Assistance. - The Ministry of Human Settlements is hereby authorized to provide management and financial support to government offices and instrumentalities placed under it's supervision pursuant to this Decree financed from its existing appropriation or from budgetary augmentation as the Minister of Human Settlements may deem necessary.
• Section 8. Rules and Regulations. - The National Environmental Protection Council shall issue the necessary rules and regulations to implement this Decree. For this purpose, the National Pollution Control Commission may be availed of as one of its implementing arms, consistent with the powers and responsibilities of the National Pollution Control Commission as provided in P.D. No. 984.
• Section 9. Penalty for Violation. - Any person, corporation or partnership found violating Section 4 of this Decree, or the terms and conditions in the issuance of the Environmental Compliance Certificate, or of the standards, rules and regulations issued by the National Environmental Protection Council pursuant to this Decree shall be punished the suspension or cancellation of his/its certificate and/or a fine in an amount not to exceed fifty thousand pesos (50,000.00) for every violation thereof, at the discretion of the National Environmental Protection Council.
• Environmental Revolving Fund


  1. Proceeds from penalties prescribed in Section 9 and other penalties imposed by the National Pollution Control Commission

  2. Automatically appropriated into the fund

  3. Used exclusively for operations of the National Environmental Protection Council and the National Pollution Control Commission

  4. Rules and regulations for utilization of the fund formulated by the Ministry of Human Settlements and submitted to the President for approval
• The Environmental Revolving Fund is created as an exemption to P.D. 711 and P.D. 1234
• Section 11. Repealing Clause. - The inter-agency Advisory Council of the National Pollution Control Commission created under Section 4 of P.D. 984 is hereby abolished and its powers and responsibilities are forthwith delegated and transferred to the National Environmental Protection Council. All laws, decrees, executive orders, rules and regulations, inconsistent herewith are hereby repealed, amended or modified accordingly.
• Section 12. Effectivity Clause. - This Decree shall take effect immediately. DONE in the City of Manila, this 11th day of June in the year of Our Lord Nineteen Hundred and Seventy-Eight.
• The Secretary of Human Settlements is hereby authorized and directed to publish this decree in the Official Gazette and in at least two (2) newspapers of general circulation.
• Rodolfo A. Valencia - Minister of Justice
• Section 11. Effectivity. - This Decree shall take effect fifteen (15) days following its complete publication in two national newspapers of general circulation.
• P.D. 1586 was signed on June 24, 1978
• The purpose of this document is to establish a national environmental policy and create a council responsible for implementing it.
• This document was signed on June 11, 1978.
• Section 10. Implementing Rules and Regulations. - The Executive Secretary, in consultation with the Chairmen of the NEDA Board and the NEPC, shall issue the necessary implementing rules and regulations within thirty (30) days from the effective date of this Decree.
• Section 9. Appropriations. - There is appropriated out of any funds in the National Treasury not otherwise obligated, the sum of Fifty Million Pesos (P50,000,000.00), which amount shall be used by the Department of Environment and Natural Resources for the implementation of this Decree.
• Section 8. Penal Provisions. - Any person who violates any provision of this Decree shall suffer the penalty provided therefor, unless it is expressly stated that no fine shall be imposed.