The Supreme Court affirmed that local government ordinances cannot contravene national laws, specifically those concerning the management of water resources. The City of Batangas’ ordinance requiring heavy industries to construct desalination plants was deemed invalid because it conflicted with the Water Code of the Philippines, which vests the National Water Resources Board with exclusive jurisdiction over water resource management. This decision reinforces the principle that local autonomy is subordinate to national legislation, ensuring consistent regulation of vital resources.

Batangas Bay’s Burden: Can a City Demand Desalination, or Does the Water Code Rule?

This case revolves around Ordinance No. 3, Series of 2001, enacted by the Sangguniang Panlungsod of Batangas City. This ordinance mandated that all heavy industries along Batangas Bay construct desalination plants to use seawater instead of freshwater for their cooling systems. The city aimed to preserve its local aquifers and ensure a sustainable supply of freshwater for its residents. However, JG Summit Petrochemical Corporation, First Gas Power Corporation, and FGP Corporation challenged the ordinance, arguing that it was unconstitutional and in conflict with the Water Code of the Philippines.

The Water Code grants the National Water Resources Board (NWRB) the authority to regulate the exploitation and utilization of water resources. The companies argued that the ordinance effectively nullified the water permits they had been granted by the NWRB. They also contended that the requirement to construct desalination plants imposed an undue burden on their businesses, violating their right to due process. Furthermore, they claimed the ordinance unfairly targeted “heavy industries” without sufficient justification, thus violating the equal protection clause.

The City of Batangas defended the ordinance as a valid exercise of its police power under the Local Government Code, asserting it was necessary for the general welfare. The city emphasized the need to conserve groundwater, a vital resource for its residents, and argued that the ordinance was a reasonable measure to prevent heavy industries from depleting the city’s aquifers. They cited Article II, Sections 15 and 16 of the Constitution, which pertain to the right to health and a balanced and healthful ecology, as further justification for the ordinance.

The Regional Trial Court (RTC) initially ruled in favor of the companies, declaring the ordinance unconstitutional for want of necessity, lack of public hearing, and violation of due process. The RTC found that the city had not demonstrated a factual necessity for the ordinance, as there was evidence suggesting a sufficient supply of groundwater. The Court of Appeals (CA) affirmed the RTC’s decision, holding that the ordinance contravened the Water Code and imposed an unreasonable burden on heavy industries.

The Supreme Court agreed with the lower courts, emphasizing that local government units (LGUs) derive their powers from the state legislature and cannot regulate activities already governed by national statutes. The Court cited the established requisites for a valid ordinance, including that it must not contravene the Constitution or any statute. The Court reiterated the principle that municipal ordinances are inferior to state laws and that LGUs cannot undo acts of Congress.

A long line of decisions has held that for an ordinance to be valid, it must not only be within the corporate powers of the local government unit to enact and must be passed according to the procedure prescribed by law, it must also conform to the following substantive requirements: (1) must not contravene the Constitution or any statute; (2) must not be unfair or oppressive; (3) must not be partial or discriminatory; (4) must not prohibit but may regulate trade; (5) must be general and consistent with public policy; and (6) must not be unreasonable.

Building on this principle, the Court found that Ordinance No. 3, Series of 2001, directly conflicted with the Water Code, which vests exclusive jurisdiction over water resource management in the NWRB. By requiring heavy industries to construct desalination plants, the city was effectively regulating the use of water, a power reserved for the national government. The Court emphasized that the ordinance encroached upon the state’s authority to regulate the exploitation, development, and utilization of natural resources.

ARTICLE 85. No program or project involving the appropriation, utilization, exploitation, development, control, conservation, or protection of water resources may be undertaken without prior approval of the Council, except those which the Council may, in its discretion, exempt.

Furthermore, the Court found the ordinance to be oppressive, as there was no scientific evidence linking the heavy industries’ use of freshwater to the salination of the city’s aquifers. The testimonies presented by the city were considered anecdotal and insufficient to establish a causal relationship. The Court noted that other entities, such as the Batangas City Water District and households, also heavily draw groundwater from the city’s aquifers.

The Supreme Court concluded that Ordinance No. 3, Series of 2001, was void for contravening the Water Code and for being oppressive. The decision underscores the importance of balancing local autonomy with the need to adhere to national laws and regulations, particularly in matters concerning natural resources. The Court emphasized that while LGUs have the power to enact ordinances for the general welfare, they must do so within the framework of existing laws and with a sound factual basis.

FAQs

What was the key issue in this case?	The central issue was whether the City of Batangas’ ordinance requiring heavy industries to construct desalination plants was valid, given its potential conflict with the Water Code of the Philippines. This involved determining the extent of local government power versus national regulatory authority.
What did Ordinance No. 3, Series of 2001, require?	The ordinance required all heavy industries along Batangas Bay to construct desalination plants and use desalinated seawater instead of freshwater for their cooling systems. It also imposed penalties for non-compliance, including fines and imprisonment.
Why did the respondents challenge the ordinance?	The respondents, JG Summit, First Gas, and FGP, argued that the ordinance was unconstitutional, violated their right to due process, and conflicted with the Water Code of the Philippines. They claimed it unduly burdened their businesses and encroached upon the authority of the National Water Resources Board.
What is the Water Code of the Philippines?	The Water Code is a national law that governs the ownership, appropriation, utilization, exploitation, development, conservation, and protection of water resources in the Philippines. It vests the National Water Resources Board (NWRB) with the authority to regulate water resource management.
What was the Supreme Court’s ruling?	The Supreme Court ruled that Ordinance No. 3, Series of 2001, was void for contravening the Water Code of the Philippines. The Court held that the city had exceeded its authority by attempting to regulate water resource management, a power reserved for the national government through the NWRB.
What is the significance of the “general welfare clause” in this case?	The City of Batangas invoked the general welfare clause of the Local Government Code to justify the ordinance. However, the Supreme Court clarified that while LGUs have the power to enact ordinances for the general welfare, they must do so within the framework of existing national laws.
Did the Supreme Court find any factual basis for the ordinance?	No, the Supreme Court found the ordinance to be oppressive because there was no scientific evidence linking the heavy industries’ use of freshwater to the salination of the city’s aquifers. The testimonies presented by the city were considered anecdotal and insufficient.
What are the implications of this decision for other LGUs?	This decision reinforces the principle that local government ordinances cannot contravene national laws, particularly in matters concerning natural resources. It clarifies the limits of local autonomy and underscores the importance of adhering to national regulations.

In conclusion, the Supreme Court’s decision in this case reaffirms the principle of national supremacy in matters of water resource management, reminding local government units that their regulatory powers are subordinate to national laws and must be exercised with a sound factual basis. This case highlights the necessity of balancing local autonomy with the need for consistent and effective regulation of vital resources at the national level.

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Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: CITY OF BATANGAS VS. JG SUMMIT PETROCHEMICAL CORPORATION, G.R. Nos. 190266-67, March 15, 2023