Antecedents

The value of the Philippine marine ecosystem cannot be

overemphasized. The country is part of an important marine biosphere
known as the "coral triangle" that includes Malaysia, Indonesia and Papua
New Guinea. Marine scientists working in the area have referred to this
ocean corridor as the marine equivalent of the Amazon.1 At the center of it
e Republic of the Philippines all is the Philippines "with the richest concentration of marine life on the
SUPREME COURT entire planet. "2 Characterized by extensive coral reefs, sea-grass beds, and
Manila dense mangrove forests, Philippine waters indeed contain some of the
EN BANC world's most diverse ecosystems. 3
DEPARTMENT OF In a report, it was explained that "[t]he full extent of the Philippines'
TRANSPORTATION (DOTR), marine biodiversity is not known, but the best information available reveals
MARITIME INDUSTRY an astounding variety of marine life: 5,000 species of clams, snails and
AUTHORITY (MARINA), and mollusks; 488 species of corals; 981 species of bottom-living algae, and
PHILIPPINE COAST GUARD (PCG), thousands of other organisms. Five of the seven sea turtle species known to
Petitioners, exist in the world today occur in Philippine waters.''4
- versus - Repeated oils spills, however, have threatened this national treasure.
PHILIPPINE PETROLEUM SEA In December 2005, a power barge ran aground off the coast of
TRANSPORT ASSOCIATION, Antique, dumping 364,000 liters of bunker oil. This oil spill severely
HERMA SHIPPING & TRANSPORT polluted 40 kilometers of Antique's coastline and decimated more than 230
CORPORATION, ISLAS TANKERS hectares of pristine mangrove forest. Rehabilitation costs have been
SEA TRANSPORT CORPORATION, estimated at USD 2 million. 5
MIS MARITIME CORPORATION, A few months after the Antique incident, or on August 11, 2006, a
PETROLIFT, INC., GOLDEN Petron-chartered single hull vessel carrying 2.1 million liters of oil sank in
ALBATROSS SHIPPING the Guimaras Strait, causing the Philippines' worst oil spill. 6 Dubbed an
CORPORATION, VIA MARINE "ecological time bomb," the sunken vessel leaked an estimated 100 to 200
CORPORATION, and liters of oil per hour, while roughly 320 kilometres of coastline was covered
CARGOMARINE CORPORATION, in thick sludge. Miles of coral reef and mangrove forests were laid to waste
Respondents. and more than 1, 100 hectares of marine sanctuaries and reserves were badly
G.R. No. 230107 See <http://www. pbs. org/frontlineworld/rough/2007 /08/philippines
Present: parlinks.html> Last
CARPIO, Senior Associate Justice, Accessed: May 18, 2018.
VELASCO, JR., 2 See The Philippine Marine Biodiversity: A Unique World Treasure. Available at
LEONARDO-DE CASTRO, <http://www.oneocean.org/flash/philippine_biodiversity.html> Last Accessed:
PERALTA, May 18, 2018.
BERSAMIN, 3 See Philippines Coastal & Marine Resources: An Introduction,
DEL CASTILLO, <http://siteresources.worldbank.org/1NTPHILIPPINES/Resources/PEM05-
PERLAS-BERNABE, chl.pdf> Last Accessed: May
LEONEN, 18, 2018.
JARDELEZA, 4 See The Philippine Marine Biodiversity: A Unique World
CAGUIOA, Treasure<http://www. oneocean. org/flash/philippine biodiversity. html> Last
MAR TIRES, Accessed: May 18, 2018;
TIJAM, citations omitted.
REYES, JR., and 5 See <http://wwf.panda.org/?78300/Large-oil-spill-in-the-Philippines-threatens-
GESMUNDO, JJ. marineecosystem>.
Promulgated: Last accessed: May 18, 2018.
x-------------------------------------------------------------------------- 6 See <https://www.greenpeace.org/archive-
DECISION intemational/en/news/features/philippines-seen-andheard/>
VELASCO, JR., J.: Last accessed: May 18, 2018.
The Case Decision 3 G.R. No. 230107
This case concerns the constitutionality of establishing the "Oil damaged. And with all fishing activities put to a halt, around 40,000 people
Pollution Management Fund;' under Section 22(a) of Republic Act No. were affected.
(RA) 9483 and Section 1, Rule X of its Implementing Rules and Regulations The aftereffects of the Guimaras disaster were felt a few days later on
(IRR), by imposing "ten centavos (1 Oc) per liter for every delivery or August 22, 2006, when sludge washed up on Panay, threatening rich fishing
transshipment of oil made by tanker barges and tanker haulers." grounds.
Decision 2 G.R. No. 230107 The sunken ship was too deep for divers to reach and the Philippines,
 lacking heavy salvage equipment, appealed for international help to prevent determined by Marina, other concerned government agencies, and
the disaster from getting worse.7 Help came from experts from the United representatives from the Owners of tankers barges, tankers haulers, and
States and Japan who helped assess the cleanup operations and suggested Ship hauling Oil and/or petroleum products. In determining the amount of
measures on how to stop the slick from spreading further to vast mangrove contribution, the purposes for which the fund was set up shall always be
areas and fishing grounds.8 considered; and
On August 23, 2006, the oil spill claimed its first human victim. (b) Fines imposed pursuant to this Act, grants, donations,
Health officials said the man inhaled the fumes of the thick, tar-like endowment from various sources, domestic or foreign, and amounts
substance outside his home on Guimaras island. Villagers reported that skin specifically appropriated for OPMF under the annual General
and breathing problems became commonplace. The government hired locals Appropriations Act.
for the clean-up, paying them less than $4 a day to scoop up the sludge on The Fund shall be used to finance the following activities:
the shores, with no protective gear and using their bare hands. 9 (a) Immediate containment, removal and clean-up operations
Recognizing the gravity and extent of the Guimaras oil spill, the lack of the PCG in all Oil pollution cases, whether covered by this Act or
of proper response strategy, the absence of the necessary equipment for not; and
containing, cleaning up, and removing spilled oil, and the difficulty in (b) Research, enforcement and monitoring activities of relevant
pinning the liability on oil companies, Congress was prompted to pass a law agencies such as the PCG, MARINA and PPA, and other ports
implementing the International Convention on Civil Liability for Oil authority of the DOTC, Environmental Management Bureau of the
Pollution Damage (1969 Civil Liability Convention) and the International DENR, and the DOE: Provided, That ninety percent (90%) of the
Convention on the Establishment of an International Fund for Fund shall be maintained annually for the activities set forth under
Compensation for Oil Pollution Damage (1992 Fund Convention). 10 The item (a) of this paragraph: Provided, further, That any amounts
1969 Civil Liability Convention was later amended by the 1992 Protocol specifically appropriated for said Fund under the General
(1992 Civil Liability Convention). 11 Appropriations Act shall be used exclusively for the activities set forth
The legislative measure began as Senate Bill No. (SB) 2600 under item (a) of this paragraph.
sponsored by then Senator Pia S. Cayetano. With sixteen (16) senators In no case, however, shall the Fund be used for personal
voting· in favor, SB 2600 was sent to the House of Representatives where it services expenditures except for the compensation of those involved in
was adopted as an amendment to House Bill No. 4363. With the concurrence clean"'.up operations.
of both houses, the enrolled copy of the consolidated bill was sent to the Provided, That amounts advanced to a responding entity or
Office of the President for signature. claimant shall be considered as advances in case of final
See <https ://earth.esa. int/web/earth-watching/natural-disasters/oil- Decision 5 G.R. No. 230107
slicks/content/- adjudication/award by the RTC under Section 18 and shall be reimbursed
/asset_publisher/71 yy BC l MdfOT /content/philippines-august-2006>Last to the Fund. (emphasis ours)
accessed: May 18, 2018. Nine years later, or on April 12, 2016, the IRR of RA 9483 was
8 Id. promulgated, with Section 1, Rule X thereof implementing the questioned
9 Id. Section 22 of RA 9483. It states:
10 See Page 1537, Journal Session No. 65, February 8, 2007, Thirteenth RULEX
Congress -Third Regular FINAL PROVISIONS
Session, Senate of the Philippines. Section 1. Oil Pollution Management Fund (OPMF)- Administration of
11 These conventions were ratified by the Philippine Senate in 1997. / the OPMF shall be [the] responsibility of the Maritime Industry Authority.
Decision 4 G.R. No. 230107 1.1. Establishment of the OPMF - The Maritime Industry Authority
On June 2, 2007, RA 9483, entitled "An Act Providing For The (MARINA) is hereby authorized to establish and open a trust fund
Implementation of the Provisions of the 1992 International Convention on account with any government depository bank for OPMF - the
Civil Liability for Oil Pollution Damage and the 1992 International OPMF shall be available for disbursement/payment of expenses
Convention on the Establishment of an International Fund for immediately after any occurrence of any oil pollution case or
Compensation for Oil Pollution Damage, Providing Penalties for Violations incident.
thereof, and for Other Purposes" or simply the "Oil Pollution Compensation 1.2. Source/Composition of OPMF - OPMF shall be composed mainly
Act of 2007 ," was signed into law. The provision relevant to this case, from the following sources[:]
Section 22 of RA 9483, provides for the establishment of an "Oil Pollution 1.2.1. Contribution of Owners and Operators of Tankers and
Management Fund" (OPMF) and states as follows: barges hauling oil and/or petroleum products in Philippines
SEC. 22. Oil Pollution Management Fund - An Oil Pollution (sic) waterways and coastwise shipping routes;
Management Fund (OPMF) to be administered by the MARINA is hereby 1.2.1.1. During its first year of existence from the date of
established. Said Fund shall be constituted from: implementation of the Act(,) [t]he OPMF shall be
(a) Contributions of Owners and operators of tankers and barges constituted through an impost of levy of ten
hauling Oil and for petroleum products in Philippine waterways and coast centavos (0.10) per liter for every delivery of
wise shipping routes. During its first year of existence, the Fund shall be transshipment of oil received by tanker barges or
constituted by an impost of ten centavos ( 1 Oc) per liter for every delivery tanker hauler from an oil depot, refinery, or other
or transshipment of Oil made by tanker barges and tanker haulers. For the storage facility for carriage to its point of
succeeding fiscal years, the amount of contribution shall be jointly destination regardless of any intervening or
intermediate point for consolidation, de Manual.
consolidation or change of means of transportation 1.5.1.2. Research, enforcement and monitoring activities as
of such oil. approved by the OPMF Committee.
1.2.1.2. An OPMF Committee shall be constituted to 1.5.2. Reimbursement of expenses incurred for immediate
determine the amount of contribution for the containment, removal and clean-up operations undertaken
succeeding years. following an incident shall require approval from the
1.2.2. Fines and Penalties under Section 1, Rule IX of this IRR OPMF Committee;
and other fines and penalties that may be determined by the 1.5.3. Total expenses for immediate containment, removal and
OPMF Committee; clean-up operations undertaken following an incident shall
· 1.2.3. Grants, donations and endowment from various domestic not exceed 90% of the funds available in the OPMF on the
and foreign sources; and date of the incident,
1.2.4. Amounts appropriated under the Annual General /
Appropriations Act pursuant to Section 2, Rule X of this Decision 7 G.R. No. 230107
IRR. 1.5.4. Amounts appropriated under the General Appropriations
1.3. The OPMF Committee shall be constituted as follows: Act for the immediate containment, removal and clean-up
/ operations undertaken following an incident.
Decision 6 G.R. No. 230107 1.5.5. The fund shall not be used for payment of personal services
Chairman-Administrator, MARINA expenditures, except for the compensation of those
Vice Chairman - Commandant, PCG involved in clean-up operations undertaken following [an]
Members: representative from the following: incident.
DOTC 1.5.6. Total expenses for research, enforcement and monitoring
PPA activities as approved by the OPMF Committee shall not
DOE exceed 10% of the total funds available in the OPMF for
DENR-EMB any given calendar year.
Tanker Association 1.6. Procedures for the Collection and Deposit/Remittance of the
(to be designated/appointed by the association members) OPMF:
Secretariat - MARINA staff designated by the Administrator 1.6.1. Owners and Operators of Tankers and barges hauling oil
1.4. The .OPMF Committee shall perform the following Duties and and/or petroleum products in the Philippines (sic)
Functions: waterways and coastwise shipping routes shall pay their
1.4.1. Determine the contribution for the year based on the monthly contributions to the MARINA Central Office or to
utilization of the OPMF; any of its Maritime Regional Offices (MROs) within the
1.4.2. Conduct/undertake an annual review and evaluation to first 5 days of the succeeding month;
determine the need to increase/decrease the amount of 1.6.2. In the case of economic zone authorizes (sic) with special
contribution for the following year/period; charters, MARINA shall put up a collection desk in its
1.4.3. Issue circulars to prescribe the rate/amount of contributions premises, monthly contributions shall be paid to the
of Owners and Operators of Tankers and barges hauling oil MARINA collecting officer.
and/or petroleum products in Philippines (sic) waterways 1.6.3. Contribution shall be computed based on the rate
and coastwise shipping routes for any particular period; prescribed by the OPMF Committee and the number of
1.4.4. Issue, in addition to the violations provided under Section liters of oil delivered/transported as reflected/reported in
1, Rule X of this IRR, a Circular prescribing fines and the Monthly Voyage Report (MVR). The MVR shall be
penalties for additional violations of (sic) relative to the supported with copies of the bill of lading issued for the
implementation of this Act; month;
1.4.5. Determine/approve amount for the initial and succeeding 1.6.4. MARINA Collection/Accountable Officers shall deposit all
transfer of funds to the PCG, in accordance with National collection received for the OPMF intact the following day
Oil Spill Contingency Plan; to the OPMF Fund Account;
1.4.6. Determine/approve the conduct of research activities 1.6.5. MARINA Collecting Officers in the MROs and (sic) shall
pursuant to Para. (sic) 1.4.1.2, of this Rule; and submit to the Central Office a Monthly Report of
1.4.7. Approve the proposed annual budget for the enforcement Collection and Deposits.
and monitoring activities of concerned agencies/offices. 1. 7. Transfer/Disbursement of Funds
1.5. Utilization of the OPMF 1.7.1. Immediately after receipt of report from PCG of any
1.5.1. Transfer or funds/disbursement from OPMF shall be with incident of oil spill/pollution, the MARINA shall transfer to
prior approval of the OPMF Committee which will cover the latter the amount covering the initial requirements for
expenditures relative to the following: the containment and removal of the spill;
1.5.1.1. For the immediate containment, removal and cleanup 1. 7.2. The amount transfer (sic) shall be considered as a
operations of the PCG in all Oil Pollution cases Revolving fund by the PCG;
the amount shall be in accordance with the Claims 1.7.3. The PCG shall request MARINA for the replenishment of
the Revolving Fund when disbursement has reached at least undue delegation of legislative power. 12
75% of the total amount; In an Order13 dated July 25, 2016, the RTC granted the prayer for
1.7.4. Disbursement or payment of expenses relative to the issuance of a writ of preliminary injunction and enjoined the implementation
containment, removal and clean-up operations undertaken of the assailed provision and IRR. 14
by other government agencies/offices or private companies RTC Decision
shall be made by the PCG; On February 22, 2017, the RTC rendered the questioned Decision
1.7.5. Any unexpended portion of the cash advance shall be granting the petition for declaratory relief and ruling in favor of respondents.
refunded to the OPMF. The trial court held that there is no clear and valid reason as to why
Decision 8 G.R. No. 230107 the oil/petroleum tankers and barges are being treated differently from other
1.8. Disbursement Procedures (10%): vessels. For the trial court, there is no substantial distinction between tankers
1.8.1. MARINA, PCG, PPA, and other government and barges and these other vessels in terms of their potential to cause oil
agencies/offices concerned shall submit annual plans and pollution or effect damage as a consequence thereof. The RTC agreed with
budget estimates covering enforcement/monitoring and respondents that to be valid, all f otential marine pollutants should be
research activities, pursuant to Section 1.4.1.2 to 1.4.1.4 of required to contribute to the OPMF.1
this Rule. With respect to the 10-centavo per liter imposition, the R TC agreed
1.8.2. Annual Plans and Budget estimates for research, with respondents that the amount is confiscatory and that said amount will
enforcement and monitoring activities shall be submitted to cripple, if not bankrupt, the respondents' businesses. 16
the OPMF for deliberation and approval. As regards the allegation that Section 22 is a rider, the trial court
1.8.3. Any new research proposal, in addition to the annual plan agreed. It held that based on the title, it is clear that RA 9483 was enacted
may be submitted to the OPMF Committee for merely to implement the provisions of the 1992 Civil Liability and the 1992
deliberation/approval. Fund Conventions. 17 The trial court noted that these Conventions do not
1.8.4. Transfer of funds for research activities shall be as order the creation of an OPMF.18
approved by the OPMF Committee. Lastly, the RTC ruled that the law does not set specific parameters to
1.9. Reimbursement to the OPMF: guide the implementing agencies on how to determine the amount of
1.9.1. MARINA shall be provided copy of any decision/order 12 Rollo, pp. 77-78.
issued by the R TC on the settlement of claims for 13 Id. at 169-176.
compensation for pollution damages. 14 Petitioners questioned said July 25, 2016 Order before the Court of Appeals
1.10. Audit of the OPMF (CA), docketed as
1.10. 1. The OPMF shall be subjected to the usual audit procedures C.A. G.R. SP No. 147709 and entitled "Department of Transportation (DOTR), et
by the Commission on Audit (COA). al. v. Hon. Alfonso C.
1. 11. Reporting Ruiz 11, et al."
1.11.1. The MARIN A, as administrator of the OPMF, shall prepare 15 Rollo, p. 84.
the following quarterly reports and submit the same to the 16 Id. at 85.
Secretary of the DOTC, the members of the OPMF 17 Id. at 80.
Committee and other concerned government offices; 18 Id. at 87. /
1.11.1.1. Collection and Deposit Decision 10 G.R. No. 230107
1.11.1.2. Disbursement contribution for the succeeding years after the first year of existence where
1.11.1.3. Status of Funds the 10-centavo amount applies. 19
1.11.2. An audited report of disbursement shall be prepared and We quote the decretal portion of the assailed Decision:
submitted by PCF to the MARINA within 90 days after the WHEREFORE, the Petition is hereby granted. The court renders
termination of the clean-up operations. judgment as follows:
1.11.3. MARINA shall submit financial reports as required by 1) The Injunction enjoining the respondents from implementing
COA, Bureau of Treasury and Department of Budget Assailed Provision (Section 22, paragraph (a) of Republic Act No.
(DBM) and Congress. 9483), and Assailed IRR (Section 1, Rule X of the Implementing
Respondents lost no time in assailing the law and the IRR. A month Rules and Regulations of Republic Act No. 9438) is made
after the promulgation of the IRR, they filed a Petition for Declaratory Relief permanent; and
(with Prayer for the Issuance of a Temporary Restraining Order and/or a 2) Section 22, paragraph (a) of Republic Act No. 9483, and Section 1,
Writ of Preliminary Injunction) under Rule 63, contesting Section 22 (a) of · Rule X of the Implementing Rules and Regulations of Republic
RA 9483, as well as Section 1, Rule X of its IRR. The petition was raffled Act No. 9483 are declared unconstitutional.
off and heard by the Regional Trial Court, Branch 216, Quezon City (R TC). SO ORDERED.20
There, they argued that the obligation to contribute to the OPMF Aggrieved, petitioners are now with this Court via the present petition
solely imposed upon the owners and operators of oil/petroleum tankers an/ for review on certiorari assailing the February 22, 2017 Decision of the
Decision 9 G.R. No. 230107 RTC. Petitioners argue that the RTC erred in declaring Section 22(a) of RA
barges violates their right to equal protection of the law; that the ten-centavo 9483 and its implementing rule unconstitutional, given that respondents'
(1 Oc) impost is confiscatory and, thus, violates their right to due process; petition for declaratory relief questioned the wisdom behind them and was,
Section 22 (a) is a prohibited rider; and, finally, the provision provides an thus, beyond the lower court's jurisdiction. Petitioners further add that the
classification in Section 22 of RA 9483 and its IRR is reasonable and just, of construction or validity arising, and for a declaration of his rights or
and does not violate the equal protection clause. Likewise, petitioners duties, thereunder.
maintain that public interest in protecting the marine wealth of the country 25 103 Phil. 1051 (1957).
warrants the imposition of the 10-centavo impost. Finally, the petitioners Decision 12 G.R. No. 230107
insist that the creation of the OPMF is relevant to the subject matter of RA Thus, there is no actual case involved in a Petition for Declaratory
9483.21 Relief. It cannot, therefore, be the proper vehicle to invoke the judicial
In its July 3, 2017 Resolution, the Court required the respondents to review powers to declare a statute unconstitutional.
file their Comment within a non-extendible period of ten days22 from receipt It is elementary that before this Court can rule on a constitutional
of the resolution. On September 2, 2017, respondents filed their Comment issue, there must first be a justiciable controversy. A justiciable controversy
on the Petition,23 mainly reiterating their contentions before the trial court.24 refers to an existing case or controversy that is appropriate or ripe for
The Issue judicial determination, not one that is conjectural or merely anticipatory.26
The core issue to be resolved in this case is whether Section 22 (a) of As We emphasized inAngara v. Electoral Commission, 27 any attempt at
RA 9483 and Section 1, Rule X of its IRR are unconstitutional. abstraction could only lead to dialectics and barren legal questions and to
19 Id. at 87-88. sterile conclusions unrelated to actualities.
20 Id. at 88. To question the constitutionality of the subject issuances, respondents
21 Id. at 36-37. should have invoked the expanded certiorari jurisdiction under Section 1 of
22 Id. at 301. Article VIII of the 1987 Constitution. The adverted section defines judicial
23 Id. at 310. power as the power not only "to settle actual controversies involving rights
24 Id. at 322. / which are legally demandable and enforceable," but also "to determine
Decision 11 whether or not there has been a grave abuse of discretion amounting to lack
The Court's Ruling or excess of jurisdiction on the part of any branch or instrumentality of the
The petition is impressed with merit. Government."
The Creation of the OPMF There is a grave abuse of discretion when there is a patent violation of
can be the subject of judicial the Constitution, the law, or existing jurispn1dence. On this score, it has been
inquiry ruled that "the remedies of certiorari and prohibition are necessarily broader
G.R. No. 230107 in scope and reach, and the writ of certiorari or prohibition may be issued to
We agree with respondents that the issue presented is a justiciable correct errors of jurisdiction committed not only by a tribunal, corporation,
question which allows the exercise by this Court of its judicial power, and board or officer exercising judicial, quasi-judicial or ministerial functions,
does not involve a political question. In Tafiada and Macapagal v. Cuenca, but also to set right, undo[,] and restrain any act of grave abuse of
et al., 25 the Court summarized the concept of political questions in this discretion amounting to lack or excess of jurisdiction by any branch or
manner: instrumentality· of the Government, even if the latter does not exercise
x x x it refers to "those questions which, under the Constitution, judicial, quasi-judicial or ministerial functions."28 Thus, petitions for
are to be decided by the people in their sovereign capacity, or in regard to certiorari and prohibition are the proper remedies where an action of the
whichfall discretionary authority has been delegated to the Legislature or legislative branch is seriously alleged to have infringed the Constitution.29
executive branch of the Government." It is concerned with issues In any case, even if the petition for declaratory relief is not the proper
dependent upon the wisdom, not legality, of a particular measure. remedy, the need to finally resolve the issues involved in this case far
In the case at bar, however, while it may appear that contesting the outweighs the rigid application of the rules. The Court, thus, treats the
creation of the OPMF amounts to questioning the wisdom behind the petition filed by the respondents before the court a quo as a petition for
measure, such is not the case. As correctly argued by respondents, the Court certiorari and prohibition.
may take judicial action on said question since it is not contesting the 26 Board of Optometry v. Colet, G.R. No. 122241, July 30, 1996, 260 SCRA 88,
creation of the OPMF per se, but rather its inclusion in RA 9483, and the cited in Velarde v.
specific parameters incorporated by the legislature in the implementation of Social Justice Society, G.R. No. 159357, April 28, 2004.
the contested provision. More importantly, violations of the due process and 27 63 Phil. 139, 158 (1936).
the equal protection clauses of the 1987 Constitution alleged by the 28 See Ifurung v. Carpio-Morales, G.R. No. 232131, April 24, 2018, citing
respondents are well-recognized grounds for a judicial inquiry into a Samahan ng mga
legislative measure. Progresibong Kabataan v. Quezon City, G.R. No. 225442, August 8, 2014.
The Petition for Declaratory Relief is 29 Id. /
not the proper remedy Decision 13
One of the requisites for an action for declaratory relief is that it must Section 22(a)of RA 9483 creating the
be filed before any breach or violation of an obligation. Section 1, Rule 63 Oil Pollution Management Fund is
of the Rules of Court states, thus: not a proscribed rider
Section 1. Who may file petition. - Any person interested under a G.R. No. 230107
deed, will, contract or other written instrument, or whose rights are Respondents argue that since RA 9483 was passed to implement the
affected by a statute, executive order or regulation, ordinance, or any other 1992 Civil Liability and the 1992 Fund Conventions, the creation of the
governmental regulation may, before breach or violation thereof bring an OPMF must be found in said Conventions for it to be validly included in RA
action in the appropriate Regional Trial Court to determine any question 9483. Othe.rwise, according to respondents, its inclusion in said law is
 constitutionally infirm for being a proscribed rider. technical construction. It is sufficient if the title be comprehensive
At first glance, one might easily agree with respondent's proposition. enough reasonably to include the general object which a statute seeks
The title of RA 9483 is phrased in this manner: to effect, without expressing each and every end and means necessary
AN ACT PROVIDING FOR THE IMPLEMENTATION OF THE or convenient for the accomplishing of that object. Mere details need
PROVISIONS OF THE 1992 INTERNATIONAL CONVENTION ON not be set forth. The title need not be an abstract or index of the act.31
CIVIL LIABILITY FOR OIL POLLUTION DAMAGE AND THE 1992 Also, in Sumulong v. Comelec,32 the Court held that all that can
INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF reasonably be required is that the title shall not be made to cover legislation
AN INTERNATIONAL FUND FOR COMPENSATION . FOR OIL incongruous in itself, and which by no fair intendment can be considered as
POLLUTION DAMAGE, PROVIDING PENALTIES FOR having a necessary or proper connection, viz:
VIOLATIONS THEREOF, AND FOR OTHER PURPOSES As stated by the Supreme Court of the United States: "We must
On the basis thereof, respondents draw this Court's attention to the give the constitutional provision a reasonable construction and effect. The
two mentioned Conventions and bid us to examine both documents to see constitution requires no law to embrace more than one subject, which shall
that the OPMF cannot be found therein. be expressed in its title. Now the object may be very comprehensive and
Concisely, the respective subject matters of the two Conventions are still be without objection, and the one before us is of that character. But it
as follows: is by no means essential that every end and means necessary or
The 1992 Civil Liability Convention governs the liability of shipowners convenient for the accomplishment of the general object should be
for oil pollution damage. The Convention lays down the principle of strict either ref erred to or necessarily indicated by the title. All that can
liability for shipowners and creates a system of compulsory liability reasonably be required is that the title shall not be made to cover
insurance. The shipowner is normally entitled to limit its liability to an 31 Giron v. Commission on Elections, 702 Phil. 30 (2013). See also Cordero v.
amount which is linked to the tonnage of its ship. Cabatuando, 116
The 1992 Fund Convention, which is supplementary to the. 1992 Civil Phil. 736 (1962); Remman Enterprises, Inc. v. Professional Res;ulatory Board of
Liability Convention, establishes a regime for compensating victims when Real Estate Service, 726
the compensation under the applicable Civil Liability Convention is Phil. 104 (2014); Government of the Philippine Islands v. Hongkong & Shanghai
inadequate. The International Oil Pollution Compensation Fund 1992, Banking Corp., 66 Phil.
generally referred to as the 1992 Fund, was set up under the 1992 Fund 483 (1938); Farinas v. Executive Secretary, 463 Phil. 179 (2003); Commission on
Convention. The 1992 Fund is a worldwide intergovernmental Elections v. Cruz, 620
organization established for the purpose of administering the regime of Phil. 175 (2009).
compensation created by the 1992 Fund Convention. By becoming Party 32 73 Phil. 288 (1941), citing 26 S. Ct. 427, 201 U. S. 100, 50 L. ed. 801. /
to the 1992 Fund Convention, a State becomes a Member of the 1992 Decision 15 G.R. No. 230107
Fund. The IOPC Funds headquarters is based in London.30 legislation incongruous in itself, and which by no fair intendment can
30 Explanatory Note, International Oil Pollution Compensation Funds, March be considered as having a necessary or proper connection."33
2018 (emphasis ours)
<https://www.iopcfunds.org/fileadmin/IOPC Thus, following these jurisprudential guides, it would undoubtedly be
Upload'Downloads/English/explanatory _note. pdf> improper for this Court to make a superficial reading of the texts of the
Accessed May 17, 2018. conventions in order to determine whether the inclusion of Section 22 in RA
Decision 14 G.R. No. 230107 9483, which was enacted to implement these Conventions, is infirm. A more
Indeed, as argued by respondents, the thrust of the 1992 Civil in-depth analysis of the conventions is necessary.
Liability and the 1992 Fund Conventions is to impose upon covered shipowners A review of the Conventions reveals that they do not only cover
strict liability for pollution damage arising from oil spills and to damage claims by affected individuals but also all amounts encompassed by
provide compensation for the victims thereof. On the other hand, the the term "pollution damage" which is defined therein as:
questioned OPMF governs the immediate containment, removal, and cleanup (a) loss or damage caused outside the ship by contamination resulting
operations in oil pollution cases and provides for the conduct of research, from the escape or discharge of oil from the ship, wherever such escape or
enforcement, and monitoring activities of relevant agencies. discharge may occur, provided that compensation for impairment of the
On the basis thereof, it would appear that the Conventions and the environment other than loss of profit from such impairment shall be
OPMF cover two different subject matters-that is, providing compensation limite~ to costs of reasonable measures of reinstatement actually
versus pollution containment and clean-up-as asserted by respondents. undertaken or to be undertaken;
Thus, prima facie, one would easily agree with respondents' contention. (b) the costs of preventive measures34and further loss or damage caused
Such a simplistic, if not myopic, view is not the proper measure to b . 35 y preventive measures.
determine whether a provision of law should be declared as In its 2011 Annual Report, the International Oil Pollution
unconstitutional. To determine whether there has been compliance with the Compensation Fund (IOPCF) enumerated the types of claims that are
constitutional requirement that the subject of an act shall be expressed in its admissible, thus:
title, the Court has repeatedly laid down the rule that - An oil pollution incident can generally give rise to claims for five
Constitutional provisions relating to the subject matter and types of pollution damage:
titles of statutes should not be so narrowly construed as to cripple or • Property damage
impede the power of legislation. The requirement that the subject of an • Costs of clean-up operations at sea and on shore
act shall be expressed in its title should receive a reasonable and not a • Economic losses by fisher folk or those engaged in mariculture
 • Economic losses in the tourism sector provisions violate the equal protection guarantee when it singled out
• Costs for reinstatement of the environment. 36 "owners and operators of oil or petroleum tankers and barges."
The Conventions, therefore, also cover damage to property, The equal protection guaranty under the Constitution means that "no
containment, clean-up, and rehabilitation. Thus, the policy underpinning person or class of persons shall be deprived of the same protection of laws
the establishment of the OPMF in Section 22(a) of RA 9483 and its IRR is which is enjoyed hy other persons or other classes in the same place and/
wholly consistent with the objectives of the conventions. Section 2 of RA Decision 17 G.R. No. 230107
9483 states: like circumstances."37 However, this clause does not preclude classification
33 Citing Blair v. Chicago, 26 S. Ct. 427, 201 U.S. 400, 50 L. ed. 801. as long as the classification is reasonable and not arbitrary. 38 In Abakada
34 "Preventive measures" means any reasonable measures taken by any person Guro Party List v. Purisima, 39 the Court elucidated, thus:
after an incident The equal protection of the laws clause of the Constitution allows
has occurred to prevent or minimize pollution damage. classification. Classification in law, as in the other departments of
35 INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS, Texts of knowledge or practice, is the grouping of things in speculation or practice
the Conventions, because they agree with one another in certain particulars. A law is not
p. 5. <https://www.iopcfunds.org/uploads/tx iopcpublications/T ext_ of_ invalid because of simple inequality. The very idea of classification is that
Conventions_ e. pelf> Last Accessed, of inequality, so that it goes without saying that the mere fact of inequality
May 18, 2018. Emphasis supplied. in no manner determines the matter of constitutionality. All that is
36 International Oil Pollution Compensation Funds, 2011 Annual Report, p. 12. required of a valid classification is that it be reasonable, which means
Available at that the classification should be based on substantial distinctions
<https://www.iopcfunds.org/uploads/tx_iopcpublications/FINAL_IOPC_Funds_Annual_Review_20 which make for real differences, that it must be germane to the
GLISH.pdt>Last Accessed, May 23, 2018. purpose of the law; that it must not be limited to existing conditions
Decision 16 G.R. No. 230107 only; and that it must apply equally to each member of the class. This
· SEC. 2. Declaration of Policy. - The State, in the protection of its Court has held that the standard is satisfied if the classification or
marine wealth in its archipelagic waters, territorial sea and exclusive distinction is based on a reasonable foundation or rational basis and is
economic zone, adopts internationally accepted measures which and not palpably arbitrary.
ensure prompt and adequate compensation for persons who suffer such In the instant case, We agree with petitioners that separating "tankers
damage. This Act adopts and implements the provisions of the 1992 and barges hauling oil and for petroleum products in Philippine waterways
International Convention on Civil Liability for Oil Pollution Damage and and coast wise shipping routes" from other sea-borne vessels does not
the 1992 International Convention on the Establishment of an violate the equal protection clause.
International Fund for Compensation for Oil Pollution Damage. For one, bear in mind that the purpose of the subject legislation is the
Indeed, by employing preventive and/or immediate containment implementation of the 1992 Civil Liability Convention and the 1992 Fund
measures or response techniques, the State is but affording protection to Convention. Both Conventions only expressly cover "sea-going vessel and
persons or all stakeholders who stand to suffer from oil pollution incidentsthe seaborne craft of any type whatsoever constructed or adapted for the
main thrust of the conventions that is now effectively translated and carriage of oil in bulk as cargo x x x. "40 This alone already forecloses any
implemented in Section 22 (a) of RA 9483 and its IRR. In other words, by argument against the validity of the alleged classification since the
creating the OPMF, Congress sought to ensure that our enforcement implementation by RA 9483 of the subject Conventions necessarily carries
agencies are capable of protecting our marine wealth and preventing harm with it the adoption of the coverage and limitations employed in said texts.
from being caused to the people and their livelihood by reason of these Furthermore, We cannot subscribe to respondents' proposition that
unfortunate· events. since all vessels plying Philippine waters are susceptible to accidents which
Time is of the essence when it comes to oil spill response. Whether 37 Philippine Rural Electric Cooperatives Association, Inc. vs. Department of
this will be taken in the context of damage to the environment and its Interior and Local
inhabitants or from a monetary perspective, the conclusion will be the same. Governmentt, G.R. No. 143076, June 10, 2003, 403 SCRA 558, 565. Cited in
We cannot simply submit to respondents' proposition that compensation for Abakada Guro Party List v.
damages and oil spill response are two unrelated subjects that cannot be Ermita, G.R. No. 168056, September 1, 2005, 469 SCRA 14, 139.
tackled in a single piece of legislation. To Our mind, oil spill response and 38 Vil/arena v. Commission on Audit, G.R. Nos. 145383-84, August 6, 2003,408
containment is directly connected to compensation for damages brought SCRA 455, 462.
about by the incident. In fact, the two concepts are inversely proportional 39 G.R. No. 166715, August 14, 2008.
to each other in that a more effective and efficient oil spill response and 40 Article I, Item 1, 1992 Civil Liability Convention provides:
clean up results in lesser pollution damage; and, ultimately, smaller pollution For the·purposes of this Convention:
damage means reduced financial liability on the part of the shipowner. "Ship" means any 1. sea-going vessel and seaborne craft of any type whatsoever
With these, We find that Section 22 is not a rider but is an essential constructed or
provision to attain the purpose of RA 9483. adapted for the carriage of oil in bulk as cargo, provided that a ship capable of
The classification in Section carrying oil and other
22 of RA 9483 and its IRR cargoes shall be regarded as a ship only when it is actually carrying oil in bulk
does not violate the equal as cargo and during any
protection clause voyage following such carriage unless it is proved that it has no residues of such
We likewise cannot sustain the R TC' s finding that the assailed carriage of oil in bulk
 aboard. 46 AbakadaGuro Party List v. Purisima, G.R. No. 166715, August 14, 2008, 562
Article I, Item 2 of the 1992 Fund Convention states: SCRA 251, 275,
2. "Ship", "Person", "Owner'', "Oil", "Pollution Damage'', "Preventive Measures", citing Victoriano v. Elizalde Rope Workers' Union, 158 Phil. 60 (1974). /
"Incident'', and Decision 19 G.R. No. 230107
"Organization" have the same meaning as in Article I of the 1992 Liability lawmakers of the much needed elbowroom in the discharge of their
Convention. functions.
Decision 18 G.R. No. 230107 As regards respondents' contention that since RA 9483 came about
may cause oil spills, all should be made to contribute to the OPMF. While because of the spate of oil spillage at the time of its enactment, this violates
all vessels, channels, and storage facilities that carry or store oil are capable the requirement that the classification must not be limited to existing
of causing oil pollution, this does not make them "similarly situated" within conditions only, the argument does not hold water.
the context of the equal protection clause. A statute or provision thereof is said to be limited to existmg
Aside from the difference in the purposes behind their existence and conditions only if it cannot be applied to future conditions as well.47 Here,
navigation, it is internationally well-recognized that oil tankers pose a We cannot, by any stretch of imagination, agree with respondents'
greater risk to the environment and to people. As a matter of fact, these types proposition. Suffice it to state that enacting a piece of legislation as a
of vessels have long been considered as a separate class and are being given response to a problem, incident, or occurrence does not make it "limited to
a different treatment by various organizations. existing conditions only." Assessing whether a statute or provision meets
The International Maritime Organization (IMO), expounding on the said requirement necessitates a review of the provision or statute itself and
International Convention for the Safety of Life at Sea (SOLAS), 1974, not the cause or trigger for its enactment. To require otherwise would be to
highlighted that the SOLAS includes special requirements for tankers. 41 improperly tie the hands of our legislature in enacting laws designed to
Citing an example, the IMO stated that "[f]ire safety provisions x x x are address the various matters, incidents, and occurrences that may arise in a
much more stringent for tankers than ordinary dry cargo ships, since the highly-dynamic and unpredictable society.
danger of fire on board ships carrying oil and refined products is much Viewed within the purview of RA 9483, it can easily be seen that the
greater. ''4 statute also applies to future conditions as it covers any and all oil spills that
2 The IMO likewise mentioned some of the measures specifically may occur within Philippine waters.
required of oil tankers, such as making it mandatory for tankers to have The conferment on the OPMF
double hulls, as opposed to single hulls, the phasing-out of single-hull Committee of the authority to
tankers, and designating protective locations of segregated ballast tanks, determine the rate of
among others, in order to ensure their safety.43 In fact, Annex I of the revised imposition for the second year
Marpol 73/7844 sets forth the numerous technical and safety requirements for of its implementation onwards
oil tankers. 45 This list is not exhaustive as there are numerous regulations is not an undue delegation of
and requirements applicable only to the subject vessels. What these show, legislative power
however, is that a vessel that carries oil in bulk has been recognized and Arguing that the assailed provision is also an undue delegation of
is treated as a separate class of vessel. This sufficiently justifies the legislative power, respondents allege that giving the OPMF Committee the
segregation done by Congress. authority to jointly determine the amount of contribution after the one-year
It bears to stress that "[i]n the exercise of its power to make imposition of the 10-centavo contribution is an undue delegation since no
classifications for the purpose of enacting laws over matters within its fixed parameters were given therefor.48
jurisdiction, the state is recognized as enjoying a wide range of discretion."46 We disagree.
Concomitantly, neither should the Court adopt such a restrictive-if not 47 See Ormoc Sugar Co., Inc. v. Treasurer of Ormoc City, No. L-23794, February
counterproductive approach-in interpreting and applying the equal 17, 1968, 22
protection guarantee under the Constitution. To do otherwise would be to SCRA 603, 606.
unduly restrict the power of Congress in enacting laws by unjustifiably 48 Rollo, p. 377. /
imposing erroneously stringent requirements and excessively high standards Decision 20 G.R. No. 230107
in the crafting of each and every piece of legislation, depriving our For a valid delegation of power, it is essential that the law delegating
41 the power must be (1) complete in itself, that it must set forth the policy to
<http://www.imo.org/en/OurWork/Safety/Regulations/Pages/OilTankers.aspx>. Last be executed by the delegate and (2) it must fix a standard - limits of which
Accessed, are sufficiently determinate or determinable - to which the delegate must
May 23, 2018. conform. 49 On the second requirement, Osmefia v. Orbos50 explained that a
42 Id. sufficient standard need not be spelled out and could be implied from the
43 Id. policy of the law:
44 Inte~tional Convention for the Prevention of Pollution from Ships. The standard, as the Court has already stated, may even be
45 MARPOL - International Convention for the Prevention of Pollution from implied. In that light, there can be no ground upon which to sustain the
Ships, pp. 66-238. petition, inasmuch as the challenged law sets forth a determinable
Available at <http://www. mar. ist. utl. pt/mventura/Projecto-N avios- standard which guides the exercise of the power granted to the ERB.
I/IMOConventions% By the same token, the proper exercise of the delegated power may be
20%28copies%29 /MARPOL. pdf> Last Accessed: May 23, 2018. tested with ease. It seems obvious that what the law intended was to
permit the additional imposts for as long as there exists a need to protect
 the general public and the petroleum industry from the adverse delegation reads:
consequences of pump rate fluctuations. "Where the standards set up for 545.
the guidance of an administrative officer and the action taken are in SEC. 22. Oil Pollution Management Fund - An Oil Pollution
fact recorded in the orders of such officer, so that Congress, the courts Management Fund (OPMF) to be administered by the MARINA is hereby
and the public are assured that the orders in the judgment of such established. Said Fund shall be constituted from:
officer conform to the legislative standard, there is no failure in the (a) Contributions of Owners and operators of tankers and barges
performance of the legislative functions." hauling Oil and for petroleum products in Philippine waterways
· This Court thus finds no serious impediment to sustaining the and coast wise shipping routes. During its first year of existence,
validity of the legislation; the express purpose for which the imposts the Fund shall be constituted by an impost of ten centavos ( 1 Oc)
are permitted and the general objectives and purposes of the fund are per liter for every delivery or transshipment of Oil made by tanker
readily discernible, and they constitute a sufficient standard upon · barges and tanker haulers. For the succeeding fiscal years, the
which the delegation of power may be justified. (Citations omitted; amount of contribution shall be jointly determined by Marina,
emphasis ours) other concerned government agencies, and representatives
Further, in Tatad v. Secretary of the Department of Energy, We stated from the Owners of tankers barges, tankers haulers, and Ship
that courts bend as far back as possible to sustain the constitutionality of hauling Oil and/or petroleum products. In determining the
laws which are assailed as unduly delegating legislative powers: amount of contribution, the purposes for which the fund was
The validity of delegating legislative power is now a quiet area in set up shall always be considered; and
our constitutional landscape. As sagely observed, delegation of legislative 52 Id. at 350-352.
power has become an inevitability in light of the increasing complexity of 53 Id. at 352-353.
the task of government. Thus, courts bend as far back as possible to 54 See Eastern Shipping Lines, Inc. v. POEA, No. L-76633, October 18, ·1988,
sustain the constitutionality of laws which are assailed as unduly 166 SCRA 533,
delegating legislative powers. Citing Hirabayashi v. United States as /
authority, Mr. Justice Isagani A. Cruz states "that even if the law does Decision 22 G.R. No. 230107
not expressly pinpoint the standard, the courts will bend over (b) Fines imposed pursuant to this Act, grants, donations,
backward to locate the same elsewhere in order to spare the statute, if endowment from various sources, domestic or foreign, and
it can, from constitutional infirmity." 51 (emphasis ours) amounts specifically appropriated for OPMF under the annual
49 Osmena v. Orbos, G.R. No. 99886, March 31, 1993, 220 SCRA 703, 712. General Appropriations Act.
so Id. The Fund shall be used to finance the following activities:
51 G.R. No. 124360, November 5, 1997, 281 SCRA 330, 352, citing Philippine (a) Immediate containment, removal and clean-up operations
Political Law, of the PCG in all Oil pollution cases, whether covered by this
1995 ed., p. 99. / Act or not; and
Decision 21 G.R. No. 230107 (b) Research, enforcement and monitoring activities of relevant
Thus, this Court has previously instructed that a standard as general as agencies such as the PCG, MARINA and PPA, and other ports
the phrases "as far as practicable," "decline of crude oil prices in the world authority of the DOTC, Environmental Management Bureau
market," and "stability of the peso exchange rate to the US dollar" are of the DENR, and the DOE: Provided, That ninety percent
neither unclear nor inconcrete in meaning, but are in fact determinable by (90%) of the Fund shall be maintained annually for the
the simple expedient of referring to their dictionary meanings. 52 The Court activities set forth under item (a) of this paragraph: Provided,
even stated that "[t]he fear of petitioners that these words will result in the further, That any amounts specifically appropriated for said
exercise of executive discretion that will run riot is thus groundless. To be Fund under the General Appropriations Act shall be used
sure, the Court has sustained the validity of similar, if not more general exclusively for the activities set forth under item (a) of this
standards in other cases."53 Indeed, the Court has, in numerous instances, paragraph.
accepted as sufficient standards policies as general as: In no case, however, shall the Fund be used for personal services
x x x "public interest" in People v. Rosenthal, "justice and equity" expenditures except for the compensation of those involved in cleanup
in Antamok Gold Fields v. CIR, "public convenience and welfare" in operations.
Calalang v. Williams, and "simplicity, economy and efficiency" in Provided, That amounts advanced to a responding entity or claimant shall
Cervantes v. Auditor General, to mention only a few cases. In the United be considered as advances in case of final adjudication/award by the RTC
States, the "sense and experience of men" was accepted in Mutual Film under Section 18 and shall be reimbursed to the Fund. (emphasis ours)
Corp. v. Industrial Commission, and "national security" in Hirabayashi v. A review of the contested provision reveals that contrary to
United States. 54 (citations omitted) respondents' assertion that the law only provides a vague standard for the
Thus, applying this commitment to sift each and every part of the exercise of the delegated authority, there are in fact a number of set
assailed law or provision thereof in order to locate any and all standards parameters included therein within which the authority to fix the amount of
possible provided therein, We are duty bound to analyze the statute in the impost shall be exercised. These are:
question to determine once and for all whether indeed the legislature failed 1. the purposes for which the fund was set up;
to incorporate therein a standard of such character as will pass this test of 2. the Fund shall be used to finance the following activities:
constitutionality. We shall first tackle the standards expressly embodied in a. Immediate containment, removal and clean-up
Section 22. To recall, the assailed provision containing the questioned operations of the PCG in all Oil pollution cases,
whether covered by this Act or not; and execution, to be exercised under and in pursuance of the law. The first
b. Research, enforcement and monitoring activities of cannot be done; to the latter no valid objection can be made." In other
relevant agencies such as the PCG, MARINA and words, the policy must be determined by the legislature and the executive's
PP A, and other ports authority of the DOTC, authority is limited only to the furtherance of this identified policy. The
Environmental Management Bureau of the DENR, executive cannot add, modify, or delete such.
and the DOE; With· respect to measuring the adequacy of the country's capability to
3. Ninety percent (90%) of the Fund shall be maintained protect our waters, shores, and the stakeholders from the effects of oil spills
annually for the activities set forth under item (a) of this as mandated under the law, Sections 4 and 6 of RA 9483, which reflect
paragraph; certain policies under the Conventions, provide the gauge therefor. Said
I provisions read:
Decision 23 G.R. No. 230107 SEC. 4. Incorporation of the 1992 Civil Liability Convention and 1992
4. Any amounts specifically appropriated for said Fund under Fund Convention. - Subject to the provisions of this Act, the 1992 Civil
the General Appropriations Act shall be used exclusively for Liability Convention and 1992 Fund Convention and their subsequent
the activities set forth under item (a) of this paragraph; amendments shall form part of the law of the Republic of the Philippines.
5. In no case shall the Fund be used for personal services xx xx
expenditures except for the compensation of those involved SEC. 6. Liability on Pollution Damage. - The Owner of the Ship at the
in clean-up operations. time of an Incident, or where the Incident consists of a series of
Put otherwise, in authorizing the OPMF Committee in determining the occurrences, at the time of the first such occurrence, shall be liable for
rate of impost for the succeeding years, Congress in fact directed them to any Pollution Damage caused by the Ship as a result of the Incident.
ensure that 90% of the funds that will be accumulated will be enough to Such damages shall include, but not limited to:
finance the following: (1) emergency response measures for oil pollution (a) Reasonable expenses actually incurred in clean-up operations
cases; (2) clean-up operations for oil spill incidents; (3) research; (4) at sea or on shore;
enforcement; and ( 5) monitoring activities of the stated agencies in (b) Reasonable expenses of Preventive Measures and further loss
connection with oil pollution. or damage caused by preventive measures;
These parameters-the specified inclusions and exclusions, and the ( c) Consequential loss or loss of earnings suffered by Owners or
share that the itemized activities shall have in the OPMF-to Us, adequately users of property contaminated or damaged as a direct result of an
meet the required standards that make a delegation of legislative power Incident;
valid. By being statutorily mandated to work within this identified scope and ( d) Pure economic loss or loss of earnings sustained by persons
these limitations, the OPMF Committee does not actually have free reign in although the property contaminated or damaged as a direct result
the exercise of its functions under Section 22. It has to ensure that the of an Incident does not belong to them;
amount of impost that it will set, in addition to any sum that they may ( e) Damage to human health or loss of life as a direct result of the
receive from the GAA and from other sources such as fines, penalties, Incident, including expenses for rehabilitation and
grants, donations, and endowments, is sufficient to meet the above 55 See Tatad v. Secretary of the Department of Energy, G.R. No. 124360,
stated needs and activities necessary for the promotion of the thrust of November 5, 1997, 281
RA 9483, which is the protection of the environment and the people SCRA 330, 353~354.
from oil pollution damage. 56 65 Phil. 56 (1937), cited inAbakadaGuro Party List v. Ermita, G.R. No.
These scopes and limitations contained in the entirety of Section 22, 168056, September 1,
without a doubt, substantially exceed the general policies that have been 2005, 469 SCRA 14, 118. /
recognized and upheld in the past as sufficient standards. Viewed with the Decision 25 G.R. No. 230107
multifariousness of oil spill response and clean-up in mind, We find that the recuperation: Provided, That costs of studies or diagnoses to
parameters set forth in the assailed provision successfully overcome this test determine the long-term damage shall also be included; and
of constitutionality, despite the absence of numerical gauges. (f) Environmental damages and other reasonable measures of
Another ground that favors the validity of the assailed provision is environmental restoration.
that what Section 22 vested in them is merely the authority to fix the rate As for the Conventions which the subject statute expressly adopts and
of the impost, taking into consideration the parameters therein clearly incorporates therein, making the Conventions form part of the law of the
stated. In other words, this authority is actually limited by the sufficiency country, it bears to stress that the respective thrusts thereof are to provide
of the Fund to meet the identified items. They were not given any "adequate compensation available to persons who suffer damage caused by
discretion to add to these parameters or to disregard them. In other words, pollution resulting from the escape or discharge of oil from ships"57 and
the delegates are expected to faithfully follow these standards set by the law, "compensation for victims who do not obtain full compensation under the
I 1992 Civil Liability Convention. "58
Decision 24 G.R. No. 230107 And again, the term "pollution damage" under RA 9483 covers the
lest their actions will be struck down as illegal for having exceeded the terms following:
of the agency. 55 (a) Reasonable expenses actually incurred in clean-up operations at sea or
As aptly stated in People v. Vera,56 the true distinction "is between the on shore;
delegation of power to make the law, which necessarily involves a discretion (b) Reasonable expenses of Preventive Measures and further loss or
as to what it shall be, and conferring an authority or discretion as to its damage caused by preventive measures;
 (c) Consequential loss or loss of earnings suffered by Owners or users of What further convinces Us that any additional specification of
property contaminated or damaged as a direct result of an Incident; limitations-which Congress opted away from-may actually do more harm
( d) Pure economic loss or loss of earnings sustained by persons although than good is the fact that numerous factors affect the extent and severity of
the property contaminated or damaged as a direct result of an Incident oil pollution caused by spills. As summarized by the International Tanker
does not belong to them; Owners Pollution Federation Limited (ITOPF):
( e) Damage to human health or loss of life as a direct result of the The effects of an oil spill will depend on a variety of factors
Incident, including expenses for rehabilitation and recuperation: Provided, including, the quantity and type of oil spilled, and how it interacts with
That costs of studies or diagnoses to determine the long-term damage shall the marine environment. Prevailing weather conditions will also
also be included; and influence the oil's physical characteristics and its behaviour. Other key
(f) Environmental damages and other reasonable measures of factors include the biological and ecological attributes of the area; the
environmental restoration. ecological significance of key species and their sensitivity to oil
The rate of impost should, thus, be enough to accumulate an amount pollution as well as the time of year. It is important to remember that the
that, when combined with the funds that will be derived from the I
appropriations under the GAA, grants, donations, and endowment from Decision 27 G.R. No. 230107
various sources, domestic or foreign, can sufficiently enable our agencies to clean-up techniques selected will also have a bearing on the
fulfill their duty of protecting the country's marine wealth and the environmental effects of a spill. 59 (emphasis ours)
stakeholders by ensuring that any damage caused by oil spills is minimal and This highly multifaceted character of oil spill incidents, coupled with
the resulting cost can be fully or adequately covered by the Conventions. Put the fact that the Philippine archipelago is comprised of thousands of islands
differently, the rate of the impost for the succeeding years must not be so with varying sizes and ecology and has one of the longest coastlines in the
low as to be insufficient to meet the budgetary needs of the agencies for world-estimated at 36,289 kilometers, reflects a certain complexity in its
the items identified under Section 22. This is so since the mandate of the state of affairs that undoubtedly makes the setting of rigid and exhaustive
law will not be fulfilled if the agencies' capacity for oil spill response is parameters difficult, if not impossible.
inadequate, ineffective, or less than what is necessary for the declared Apropos, in Osmena, 60 this Court, tackling the question whether there
purpose. Conversely, it must also not be so high that the totality of the was an undue delegation of legislative power when the Energy Regulatory
amount accumulated from the various sources gravely exceeds the Board was conferred the authority to impose additional amounts on
57 Liability and Compensation for 011 Pollution Damage, Text of the petroleum products, held that the dynamic character of the circumstances
Conventions, IOPCF, p. 6. within which the authority is to be exercised must be considered in
58 Id. at 5. / determining whether the assailed provision provides a sufficient
Decision 26 G.R. No. 230 I 07 standard.
financial requirements for said items. Simply put, the sum of the The Court's pronouncement in the cited case could not be more
amounts to be collected or received from the various sources must not fitting. Indeed, oil spill response and clean-up, and rehabilitation of affected
exceed the administrative costs and expenses of implementing the areas, among others, are affected by a great number of factors, most of
activities. which are outside the control of man. Philippine waters are so vast, diverse,
With these, We find that the evils that the sufficient standards test and rich that we cannot possibly require Congress to comprehensively set
seeks to prevent are amply addressed by the questioned Section 22, as well forth any and all factors that must be considered in the determination of the
as the abovementioned provisions which provide the guidelines therefor. By metes and bounds for the setting of the questioned impost, more so
setting forth the identified parameters and the policy that the funds to be numerical restrictions. Furthermore, with the unpredictability and
accumulated by virtue of the impost are for the purpose of protecting the uncontrollability of the accumulation of costs of pollution damage in oil
country's marine wealth and ensuring full or adequate compensation to the spills, an exhaustive list of parameters may not work to our country's
victims of oil spills, the metes and bounds of the exercise of the delegated advantage.
authority have been sufficiently laid out. Consequently, the manner by The imposition of the 10-
which the delegates are to exercise the conferred authority can be centavo impost does not violate
measured against these parameters and checked for any evidence of the due process clause
arbitrariness or excessiveness. Section 1, Article III, of the Constitution guarantees that no person
It is also important to note that Congress . included the shall be deprived of property without due process of law. While there is no
representatives from the owners of tankers barges, tankers haulers, and controlling and precise definition of due process, it furnishes a standard to
ship hauling oil and/or petroleum products as part of the group tasked which governmental action should conform in order that deprivation of life,
to determine the rates for the foil owing years. In so doing, Congress not liberty or property, in each appropriate case, be valid.61
only valued their inputs but also gave them an avenue to protect their 59 Environmental Effects of Oil Spills, Available at
businesses by ensuring that the effect of the imposition on the private <http://www.itopf.com/knowledgeresources/
sector would be factored in and not seen as mere recommendations. As a documents-guides/environmental-effects/> Last Accessed: May 24, 2018.
matter of fact, the legislature placed them in a position that is more than 60 G.R. No. 99886, March 31, l993, 220 SCRA 703.
consultative. By making them part of the group authorized to determine the 61 See City qf Manila v. Laguio. Jr., G.R. No. 118127, April 12, 2005, 455 SCRA
amount of impost, they were given not just the opportunity to be heard but 308, 329. /
the capability to directly influence the rate of the impost. This certainly goes Decision 28 G.R. No. 230107
beyond mere consultation or advice. Relevant to the instant case is the doctrine's application to businesses
 and trade where this basic pledge ensures that insofar as the property of is also possible that they are not. The Court is allowed some degree of
private corporations and partnerships is concerned, these entities enjoy the skepticism and is not expected to take these "evidence" hook, line and sinker
promise of protection against arbitrary regulation. 62 Thus, the Court, in JMM especially when what is in question is the constitutionality and validity of a
Promotion and Management, Inc. v. Court of Appeals, held that: legislative enactment. Echoing this necessary skepticism is the Court's
A profession, trade or calling is a property right within the pronouncement in the case of Churchill v. Concepcion, thus:
meaning of our constitutional guarantees. One cannot be deprived of Surely, before the courts are called upon to adjudge an act of the
the right to work and the right to make a living because these rights legislature fixing the maximum passenger rates for railroad companies to
are property rights, the arbitrary and unwarranted deprivation of which be unconstitutional, on the ground that its enforcement would prevent the
normally constitutes an actionable wrong. 63 stockholders from receiving any dividends on their investments, or the
Nonetheless, equally well-settled is the rule that "where the due bondholders any interest on their loans, they should be fully advised as to
process and equal protection clauses are invoked, considering that they are what is done with the receipts and earnings of the company; for if so
not fixed rules but rather broad standards, there is a need for proof of such advised, it might clearly appear that a prudent and honest management
persuasive character as would lead to such a conclusion. Absent such a would, within the rates prescribed, secure to the bondholders their interest,
showing, the presumption of validity must prevail. "64 Thus, in asserting that and to the stockholders reasonable dividends. While the protection of
the 10-centavo per liter impost is unconstitutional, respondents have the vested rights of property is a supreme duty of the courts, it has not come to
burden of proof to convince this Court that indeed said imposition is this, that the legislative power rests subservient to the discretion of any
arbitrary, oppressive, excessive, and confiscatory, thereby violating the railroad corporation which may, by exorbitant and unreasonable salaries,
constitutional proscription against deprivation of property without due or in some other improper way, transfer its earnings into what it is pleased
process of law. to call 'operating expenses. ' 67
Respondents, however, by providing nothing more than hypothetical Additionally, the error in said computations lies in the fact that it
computations of their losses, failed to discharge this burden. Indeed, failed to consider the operation of Section 22 which dictates that the impost
persuading this Court that their businesses would suffer to a large extent if shall be 10 centavos per liter only on the first year. This allows for a
they will be made to shoulder the I 0-centavo/liter impost cannot be retention, increase, or reduction in the succeeding years, whichever is
satisfactorily discharged, as to overcome a strong presumption of determined to be necessary. This scenario was obviously not taken into
constitutionality, by the mere expedient of presenting a sample scenario, the account when respondents made said computations.
truthfulness or accuracy of which has not even been proven. But respondents, adamant in having the impost invalidated, draw Our
It would be improper to declare an imposition as unlawful or attention to their computation of the amount that would be collected if said
unconstitutional on the basis of purely hypothetical and unsubstantiated imposition would be enforced. Respondents contend that the imposition of
computations. In refusing to declare a provision of law as unconstitutional 66 Rollo, p. 43.
based on theoretical assumptions, this Court, in Abakada Gura Party List v. 67 34 Phil. 969, 973 (1916), citing Chicago and Grand Trunk Railway Co. v.
Ermita, emphatically stated that "[t]he Court will not engage in a legal joust Wellman, 143 U. S.
where premises are what ifs, arguments, theoretical and facts, uncertain. Any 339. /
disquisition by the Court on this point will only be, as Shakesfseare describes Decision 30 G.R. No. 230107
life in Macbeth, 'full of sound and fury, signifying nothing.'" 5 the IO-centavo charge for the years 2007-2012 would have yielded
62 See Smith, Bell & Co. v. Natividad, 40 Phil. 136, 145 (1919), cited in City of approximately Two Billion Pesos (Php2,000,000,000.00) annually. 68 They
Manila v. Laguio, then compare this with the cost of the clean-up for the Guimaras Oil Spill,
Jr., id. at 330. by far the worst oil spill in Philippine history. According to them, it only
63 G.R. No. 120095, August 5, 1996, 260 SCRA 319, 330. amounted to Php775,594,885.00, which amount is significantly lower than
64 Abakada Gura Party List v. Ermita, G.R. No. 168056, September 1, 2005, 469 the amount that the imposition would yield. 69
SCRA 14, 130- The arguments fail to persuade.
131. The determination of whether a measure or charge is confiscatory or
65 Id. at 139. (citation omitted) not, within the purview of the due process clause, will not solely depend on
Decision 29 G.R. No. 230107 the amount that will be accumulated therefrom. Such a gauge is downright
The hypothetical computations provided by the respondents do not erroneous. Other factors must likewise be considered such as the purposes
equate to a material and actual impact that the questioned impost will have for which the fund will be used and the costs which said purposes entail,
on their businesses. In other words, these are mere mock-up situations which among others. Viewed from the context of oil spills and the current
discount several factors, including any adjustments that a business may incapacity of our enforcement agencies to timely and adequately respond to
undertake to secure profits despite the impost. As a matter of fact, oil spill incidents, plus the aforementioned characteristics of our natural
respondents themselves state that they have the option of passing the resources and the environment, We cannot safely conclude that any amount,
expense to the consumers.66 We are not here saying that respondents should even millions or billions, is actually exorbitant or excessive in the
adopt said course of action, but what is obvious is that they have sufficient furtherance of RA 9483's objectives.
leeway in the conduct of their business that would allow them to realize And these computations fail to take into account the fact that, guilty of
profits notwithstanding the enforcement of Section 22. reiteration, the impost is not perpetually fixed at 10 centavos per liter. Thus,
What further prevents Us from relying on said computations is that it if the laudable purposes of RA 9483 can be sufficiently met and financed by
would be imprudent for this Court to take these computations without a a lesser impost, then there is nothing to prevent the proper reduction of the
grain of salt. While it is possible that these income statements are truthful, it rate.
Another flaw in the arguments is that they are incomplete in the sense their use of the country's waters and the exposure of this natural resource to
that without any data as to the costs of the necessary tools, equipment, a risk of grave and irreparable damage brought about by said use. Moreover,
inventories, trainings, research, among others, needed for the furtherance of the amounts collected are to be used sole1y for the identified items in the
RA 9483, there is no way to determine whether the initial amount that will assailed law and only for the furtherance of the declared purposes of the
be collected from the 10-centavo impost during the first year of operation of 70 112 U.S. 580 (1884).
Section 22 is already unjustifiably massive, making the 10-centavo rate 71 Emphasis supplied. /
exorbitant and confiscatory. Decision 32 G.R. No. 230107
We cannot simply rely on the cost of the Guimaras oil spill clean-up statute. As stated by the Supreme Court of Washington, En Banc in Teter v.
because as repeatedly intimated, oil spills are unpredictable and their extent Clark County:72
is almost entirely uncontrollable. One incident cannot serve as the basis for x x x In Craig v. Macon, 543 S.W.2d 772 (Mo. 1976), the court
estimating the costs needed for oil spill response, · among others. held valid the charges imposed by the city for solid waste disposal, even
Furthermore, the OPMF does not only cover the conduct of the clean-up though appellants did not have their garbage removed by the city and thus
itself. The OPMF, as previously explained, was primarily created for obtained no "service". The Missouri Supreme Court held that the statute
capacity-building, that is, to give our local agencies the capability to render under which the city acted was a public health regulation, intended to
emergency response measures and not rely heavily, if not entirely, on protect the entire population. As a police power measure, the statute
68 Rollo, p. 369. enabled the city to take whatever measures were reasonably required
69 Id. at 370. / to meet the public health needs. The charges were only incidental to
Decision 31 G.R. No. 230107 the regulatory scheme: the payments went only toward the costs of
foreign assistance. Thus, to use the cost of the cleanup in the Guimaras that program; none of the money went into general revenue. Thus,
incident as the benchmark for determining whether the impost is reasonable because the money was collected for a specific purpose (to pay the cost
or not will definitely lead to misguided conclusions. of a public health program) the charge was deemed valid. x x x In Hobbs,
Most importantly, it must be borne in mind that the impost provided the city enacted a garbage collection ordinance and charged property
in Section 22 is not a revenue-raising tax intended to supplement the owners for collection; appellant property owners did not use the city's
government's treasury. What Section 22 does is to regulate the conduct of service. There the court held that a due process violation did not exist
the business of owners and operators of oil tankers and barges by imposing because the ordinance is a health measure and the charges are not
upon them the duty to contribute to the protection of Philippine waters merely for the specific act of garbage removal, but to defray the
which they directly use in the conduct of their trade, and which they expose expenses of the entire program. Further, appellants received a general
to a risk of possibly irreparable destruction brought about by the spillage or benefit from the removal of others' garbage the control of insects, etc.73
leakage of the product that they carry and profit from. The collection of administrative charges and fees on vessels is not
In other words, the 10 centavos is an administrative charge or fee new. To name a few, reference may be made to RA 137!74 which imposes
which, in the case at hand, was imposed on covered entities to protect a upon owners and operators of vessels various charges and fees for the use of
resource and territory that those in the industry directly use in the conduct of Philippine ports, among others. 75
their business, that is, the country's maritime domain. Such administrative Through the imposition in Section 22 of RA 9483, Congress did not
charge is a valid charge. On this matter, We refer to the pronouncements of just direct the protection of the country's marine resource, it also promoted
the United States Supreme Court in Edye v. Robertson.70 Thus: the constitutionally-protected right of the people to a balanced and healthful
If it were necessary to prove that the imposition of this ecology in accord with the rhythm and harmony of nature76 and the basic
contribution on owners of ships is made for the general welfare of the 72 104 Wn.2d 227 ( 1985), 704 P.2d 1171.
United States, it would not be difficult to show that it is so, and 73 Emphasis supplied.
particularly that it is among the means which congress may deem 74 AN ACT TO DEFINE, CLASSIFY, FIX AND REGULATE THE AMOUNT OF
necessary and proper for that purpose, and beyond this we are not ALL
permitted to inquire. But the true answer to all these objections is that the CHARGES AND FEES IN PHILIPPINE PORTS, OTHER THAN CUSTOMS
power exercised in this instance is not the taxing power. The burden DUTIES, INTERNAL
imposed on the ship-owner by this statute is the mere incident of the REVENUE TAXES AND TONNAGE DUES.
regulation of commerce-of that branch of foreign commerce which is 75 RA 1371,Section 1. Definitions. As used in this Act:
involved in immigration. x x x (a) Harbor fee is the amount which the owner, agent, operator or master of a
It is true, not much is said about protecting the ship-owner. But he vessel has to pay for
is the man who reaps the profit from the transaction, who has the means to each entrance into or departure from a port of entry in the Philippines.
protect himself, and knows well how to do it, and whose obligations in the (b) Wharfage charge is the amount assessed against the cargo of a vessel
premises need the aid of the statute for their enforcement. The sum engaged in the foreign
demanded of him is not, therefore, strictly speaking, a tax or duty trade, based on the quantity, weight or measure received and/or discharged by
within the meaning of the constitution. The money thus raised, such vessel. The owner,
though paid into the treasury, is appropriated in advance to the uses consignee, or agent of either, of the merchandise is the person liable for such
of the statute, and does not go to the general support of the charge.
government. 71 x x x (c) Berthing charge is the amount assessed against a vessel for mooring or
The same situation obtains in the present case. The 10-centavo impost berthing at a pier,
is collected from the covered owners and operators, taking into consideration
 wharf, bulkhead wharf, river or channel marginal wharf at any port in the 79 Metropolitan Manila Development Authority v. Viron Transportation' Co.,
Philippines; or for mooring or Inc., G.R. No.
making fast to a vessel so berthed; or for coming or mooring within any slip, 170656, August 15, 2007, 530 SCRA 341, 362.
channel, basin, river or canal Decision 34 G.R. No. 230107
under the jurisdiction of any port of the Philippines. The owner, agent, operator WE CONCUR: az;:\
or master of the vessel is Senior Associate Justice
liable for this charge. Jt~~h~
( d) Storage charge is the amount assessed on merchandise for storage in TERESITA J. LEONARDO-DE CASTRO
customs premises, cargo Associate Justice
sheds and warehouses of the government. The owner, consignee, or agent of ffif1· fJ..vM.,,,/
either, of the merchandise is ESTELA M. PERLAS-BERNABE
liable for this charge. Associate Justice
(e) Arrastre charge is the amount which the owner, consignee, or agent of either, Associate Justice
of merchandise s UEL ~CfdIRES
or baggage has to pay for the handling, receiving and custody of the imported or Associate Justice
exported merchandise or ANDR~~EYES, JR.
the baggage of the passengers. Ass6cig;e Justice
76 Section 16, Article II [State Polic1es], 1987 Constitution. / ~~ ~:.:~ C. DEL CASTILLO
Decision 33 G.R. No. 230107 Associate Justice
and constitutional right to health. 77 On the basis thereof, it can be said that "
the questioned imposition is an exercise of police power by the State. S. CAGUIOA
Police power is the plenary power vested in the legislature to make, \\(
ordain, and establish wholesome and reasonable laws, statutes and NOEL G~E\ TIJAM
ordinances,· not repugnant to the Constitution, for the good and welfare of Assoc\bte Justice
the people. 78 This power to prescribe regulations to promote the health, /
morals, education, good order or safety, and general welfare of the people Decision 35 G.R. No. 230107
flows from the recognition that salus populi est suprema lex-the welfare of CERTIFICATION
the people is the supreme law. 79 Pursuant to Article VIII, Section 13 of the Constitution, it is hereby
The creation of the OPMF is, thus, not a burdensome cross that the certified that the conclusions in the above Decision had been reached in
respondents have to bear. Rather, it is an opportunity for them to have an consultation before the case was assigned to the writer of the opinion of the
important role in the protection of the environment which they navigate and Court.
directly utilize in the conduct of their business. It is but proper and timely to ANTONIO T. CARPIO
remind respondents that the conduct of a business is a mere. privilege which Senior Associate Justice
is subject to the regulatory authority of the State. Property! rights may be (Per Section 12, R.A. 296,
interfered with, especially if it is for the furtherance of the common good. A The Judiciary Act of 1948, as amended)
few business adjustments and sacrifices, weighed against the prevention of CERTIFIED TRUE COPY
the possibly irreparable destruction of the country's natural resources, must /
necessarily take a back seat. We have the duty to protect our environment
for the future generations, and all must share in this responsibility, including
legal entities.
WHEREFORE, premises considered, the instant petition is
GRANTED. The February 22, 2017 Decision of the Regional Trial Court,
Branch 216, Quezon City is hereby REVERSED and SET ASIDE. © Copyright 2021 Central Book Supply, Inc. All rights reserved.
The constitutionality and validity of sub-paragraph a, Section 22 of
Republic Act No. 9483, as well as Section 1, Rule X of the Implementing
Rules and Regulations of said law are hereby UPHELD.
SO ORDERED.
0 J. VELASCO, JR.
ociate Justi,be
77 Section 15, Article II [State Policies], 1987 Constitution.
78 Binay v. Domingo, G.R. No. 92389, September 11, 1991, 201 SCRA 508, 514,
cited in
Metropolitan Jvfanila Development Authority v. Viron Transportation Co., Inc.,
G.R.1 No. 170656, August
15, 2007, 530 SCRA 341, 362.