Section 13Sec./Art. 13

Insert and renumber Sections 18, 19, 20, 21, 22, 23, 24 and 25 in Republic Act No. 9729 to read as follows:

"SEC. 18. Creation of the Peoples Survival Fund. A Peoples Survival Fund (PSF) is hereby established as a special fund in the National Treasury for the financing of adaptation programs and projects based on the National Strategic Framework."

"SEC. 19. Sources of the Fund. The amount of One billion pesos (P1,000,000,000.00) shall be appropriated under the General Appropriations Act (GAA) as opening balance of the PSF.

Thereafter, the balance of the PSF from all sources including the amount appropriated in the GAA for the current year shall not be less than One billion pesos (P1,000,000,000.00): Provided, That the balance of the PSF may be increased as the need arises, subject to review and evaluation by the Office of the President and the Department of Budget and Management (DBM) of the accomplishments of the Commission and other concerned LGUs: Provided, further, That the PSF shall not be used to fund personal services and other operational expenses of the Commission: Provided, furthermore, That the balance of the PSF including the amount appropriated in the GAA which shall form part of the fund shall not revert to the general fund: Provided, finally, That the Commission shall submit to Congress and the DBM a semi-annual physical/narrative and financial report on the utilization of the PSF.

The PSF may be augmented by donations, endowments, grants and contributions, which shall be exempt from donors tax and be considered as allowable deductions from the gross income of the donor, in accordance with the provisions of the National Internal Revenue Code of 1997, as amended."

"SEC. 20. Uses of the Fund. The fund shall he used to support adaptation activities of local governments and communities such as, but not limited to, the following:

(a) Adaptation activities, where sufficient information is available to warrant such activities, in the areas of water resources management, land management, agriculture and fisheries, health, infrastructure development, natural ecosystems including mountainous and coastal ecosystems;

(b) Improvement of the monitoring of vector-borne diseases triggered by climate change, and in this context improving disease control and prevention;

(c) Forecasting and early warning systems as part of preparedness for climate-related hazards;

(d) Supporting institutional development, for local governments, in partnership with local communities and civil society groups, for preventive measures, planning, preparedness and management of impacts relating to climate change, including contingency planning, in particular, for droughts and floods in areas prone to extreme climate events;

(e) Strengthening existing; and where needed, establish regional centers and information networks to support climate change adaptation initiatives and projects;

(f) Serving as a guarantee for risk insurance needs for farmers, agricultural workers and other stakeholders; and

(g) Community adaptation support programs by local organizations accredited by the Commission.

The fund shall be suppletory to any annual appropriations allocated by relevant government agencies for climate change-related programs and projects and by LQUs. The fund shall encourage counterpart funding arrangements among local governments, community organizations, the private sector, and other entities."

"SEC. 21. The Peoples Survival Fund Board. There is hereby created a Peoples Survival Fund Board, hereinafter referred to as the PSF Board, which shall be lodged under the Commission. It shall be composed of the following:

(a) Secretary of the Department of Finance as Chair;

(b) Vice Chairperson of the Commission;

(c) Secretary of the Department of Budget and Management;

(d) Director-General of the National Economic and Development Authority;

(e) Secretary of the Department of the Interior and Local Government;

(f) Chairperson of the Philippine Commission on Women;

(g) A representative from the academe and scientific community;

(h) A representative from the business sector; and

(i) A representative from the NGOs: Provided, That the organizations of the academe and scientific community, business and NGO representatives of the PSF Board are disqualified from accessing the fund during their term, as set by the Commission, and a year after their tenure in the PSF Board shall have been terminated or completed. The said representatives shall be identified nod designated as such by the Commission."

"SEC. 22. Powers and Functions of the PSF Board. The PSF Board, which shall convene at least twice a year, shall have the following powers and functions:

(a) Promulgate policies that will maintain the fiduciary character of the Board;

(b) Provide overall strategic guidance in the management and use of the fund including, but not limited to, the development of funding windows for various adaptation activities, including counterpart funding arrangements, and guidelines for project assessment, approval and evaluation;

(c) Develop social, financial and environmental safeguards to be used in project implementation;

(d) Identify additional sources for the fund;

(e) Issue final approval of projects for the use of the fund;

(f) Adopt a conflict of interest policy to ensure that board members will not vote on projects if they have a direct stake therein; and

(g) Ensure an independent third party evaluation and auditing of activities supported by the fund, taking into consideration the principles of transparency and accountability, and government accounting and auditing roles and regulations."

"SEC 23. Role of the Commission in the Utilization of the Peoples Survival Fund. The Climate Change Office, headed by the Vice Chairperson of the Commission, shall evaluate and review the project proposals, and, with the concurrence and endorsement of a majority of the climate change Commissioners appointed by the President, recommend approval of project proposals to the PSF Board based on the policies, guidelines, and safeguards, agreed by the PSF Board. The Commission shall utilize the expertise of relevant government agencies in its advisory board and the national panel of technical experts in the project appraisal, monitoring and evaluation process. The Commission shall not be a project implementor.

The Commission shall formulate mechanisms that ensure transparency and public access to information regarding funding deliberations and decisions.

The Commission shall develop guidelines to accredit local organizations seeking to access the fund. Organizations will be accredited based on criteria such as organizational independence, track record in the community and/or field of expertise, financial management, and participatory practices."

"SEC. 24. Prioritization of Fund Allocation. The Commission shall develop criteria to prioritize use of the fund based on, but not. limited to, the following:

(a) Level of risk and vulnerability to climate change;

(b) Participation of affected communities in the design of the project;

(c) Poverty reduction potential;

(d) Cost effectiveness and attainability of the proposal;

(e) Identification of potential co-benefits extending beyond LGU territory;

(f) Maximization of multi-sectoral or cross-sectoral benefits;

(g) Responsiveness to gender-differentiated vulnerabilities; and

(h) Availability of climate change adaptation action plan."

"SEC. 25. Community Participation. To ensure transparency and participation of vulnerable and marginalized groups in the adaptation projects to be supported by the fund, community representatives and/or NGO counterparts may participate as observers in the project identification, monitoring and evaluation process of the Commission."