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Department of Environment and Natural Resources (DENR) · DAO 2026-38

Supplemental Addendum and Amendment to DENR Administrative Order Nos. 2025-22 and 2026-07 Re: Sustainable Forest Land Management Agreement (SFLMA)

SFLMAsustainable forest land management agreementDAO 2025-22DAO 2026-07forest tenurespecial uses of forest landsenergy facilitiestransmission line right-of-wayPDMPSFLMPannual user's feeECCCNCPEISSNCIPCNOCertification PreconditionFMBNational Greening ProgramCBFMACSC

DENR Administrative Order No. 2026-38

Subject: Supplemental Addendum and Amendment to DENR Administrative Order Nos. 2025-22 and 2026-07 Re: Sustainable Forest Land Management Agreement (SFLMA)

Signed: September 17, 2026 . Pages: 42 . Signed by: Atty. Juan Miguel T. Cuna, CESO I, Secretary

Publication: Manila Standard, September 25, 2026. Filed with ONAR and UP Law Center: September 29, 2026. Effectivity: fifteen (15) days after publication and upon filing with ONAR and the UP Law Center.

Legal Basis

PD 705 as amended (Revised Forestry Code); RA 11659 amending the Public Service Act; RA 7925 (Public Telecommunications Policy Act); RA 9136 (EPIRA); and RA 9513 (Renewable Energy Act of 2008).

SECTION 1. Basic Policy

State policy to protect the right to a balanced and healthful environment; promote economic development and employment through sound resource development; improve the socio-economic conditions of local and cultural communities through equitable access to forest land resources; protect the population from natural hazards and ensure food, energy and water security; and promote climate change mitigation and adaptation by maintaining and enhancing forest ecosystems.

SECTION 2. Objective

To further strengthen and streamline the implementation of DAO 2025-22 and DAO 2026-07 by clarifying and amending their provisions, enhancing application and processing procedures, and promoting the sustainable development, management, protection and utilization of forest lands.

SECTION 3. Scope and Coverage

Forest lands outside National Parks that are suitable and available for management, development, conservation, protection and utilization.

SECTION 4. Amended and Added Definitions (Section 4 of DAO 2025-22)

  • People's Organization (4.28): an association, cooperative or federation with a juridical entity, registered within or outside the applied area, undertaking collective action for community needs and sharing benefits.
  • Sustainable Forest Land Management Plan (4.43): a 25-year development and management plan prepared by the SFLMA holder and approved by the DENR, based on the approved Proposed Development and Management Plan (PDMP).
  • Tenurial Right (4.45): legal rights over the use, control and possession of a parcel of forest land under a legally binding agreement.
  • Certificate of Public Convenience (CPC) or Certificate of Public Convenience and Necessity (CPCN) (4.50): authority to operate a public utility such as electricity, water or telecommunications.
  • Power Generation Company (4.51): a juridical entity authorized by the ERC to operate generation facilities.
  • Public Utility (4.52): limited to distribution or transmission of electricity, petroleum and petroleum products pipeline transmission systems, communication/cable transmission, and water pipeline distribution.
  • Investment Option (4.53): the specific purpose or combination of purposes for which an SFLMA is approved, as detailed in the PDMP and SFLMP.

SECTION 5. Special Uses of Forest Lands (amends Section 5.6 of DAO 2025-22)

Other beneficial purposes that shall not substantially impair existing forest resources and ecosystem health and services, limited to:

  1. Causeway
  2. Communication station site and related facilities
  3. Dry dock site
  4. Fuel depot
  5. Landing site (airstrip)
  6. Log pond or log depot
  7. Lumberyard
  8. Port for sea transportation
  9. Energy-related facilities and infrastructure
  10. Road right of way
  11. Shipyard and related facilities
  12. Stockyard
  13. Tourism-related infrastructure
  14. Transmission line right-of-way
  15. Water reservoir or water impounding dam and related facilities
  16. Wood processing plants, sawmills and ancillary facilities
  17. Mining ancillary facilities, except mine tailing ponds

SECTION 6. Documentary Requirements (amends Section 11 of DAO 2025-22)

11.1 Upon submission of the SFLMA application

  1. Letter of Intent
  2. Duly accomplished application form (Annex A)
  3. Proof that the applicant is a legitimate entity qualified to hold an SFLMA (Annex B): valid government ID for individuals; SEC or CDA registration and latest General Information Sheet for corporations, cooperatives and partnerships; Sanggunian resolution for LGUs; agency head certification for national government agencies; board resolution and secretary's certificate for GOCCs.
  4. For areas outside a Potential Investment Area (PIA) or parcels subdivided from a PIA: a GIS-generated location map with shapefiles based on an actual ground survey (municipal boundary, technical description, geodetic control point, projection and coordinate reference system), supported by a DENR-Proponent Joint Survey Report (Annex C). Survey costs are borne by the applicant. Telecommunication tower applications may submit the corner coordinates instead of the map.
  5. Proposed Development and Management Plan (Annex D)
  6. Proof of financial capability covering the initial capital investment
  7. Application fee of PHP 10,000 regardless of area, paid upon receipt of complete requirements

Overlaps with National Greening Program (NGP) sites: a notarized Affidavit of Undertaking (Annex E) within 30 working days after SFLMA issuance, committing to re-establish the affected plantation in an area agreed with the FMB and to maintain and protect it for five (5) years.

Overlaps with CBFMA or Certificate of Stewardship Contract (CSC) areas: a notarized PO resolution or waiver of rights (Annex F) from the tenure holders within 20 working days from discovery of the overlap and before SFLMA issuance.

11.2 Post-condition requirements after SFLMA approval (submitted to the FMB)

RequirementDeadline from notarization of the approved SFLMA
Sustainable Forest Land Management Plan (SFLMP)1 year
Other applicable requirements: DOE Energy Service Contract and/or Operating Contract for energy projects; CAAP clearance for communication sites, transmission lines and similar facilities; PCSD clearance in Palawan; NWRB clearance or permit for water production projects; CPC or CPCN3 months
NCIP Certificate of Non-Overlap or Certification Precondition3 years
Certificate of Non-Coverage (CNC) or Environmental Compliance Certificate (ECC), whichever is applicable1 year

The SFLMA is automatically cancelled if the development targeted in the PDMP does not commence within one (1) year from issuance.

SECTION 7. Annual User's Fee (amends Section 15 of DAO 2025-22)

Investment optionAnnual user's fee
Forest plantation and agroforestry3% of total gross revenue from investment options in the tenured area, certified by the external auditor or CFO and supported by sales records, audited financial statements and BIR-stamped income tax return
GrazingPHP 200 per hectare
Special land uses, including ecotourism and other special purposesPHP 85,000 per hectare or fraction per year
Special land uses for communication station sitesPHP 85,000 per communication station site
Special land uses for energy purposes, including transmission linesPHP 7,200 per hectare per year or fraction, increased cumulatively by 10% annually
SFLMA with two or more management strategiesSum of the computed amounts per strategy
Protection forest developmentNo fee for CSR initiatives and the mandated reforestation program of SFLMA holders

SECTION 8. Incentives (amends Section 16 of DAO 2025-22)

16.5 All trees planted by the holder within established tree plantations are exempt from DENR logging bans for the duration of the SFLMA. 16.6 The renewal application fee is waived if the holder passes the performance evaluation conducted before renewal.

SECTION 9. Processing Procedure (amends Section 2 of DAO 2026-07)

DENR Field Offices assist in site assessment, field validation and stakeholder consultation when necessary. Complete applications are processed within twenty (20) working days from payment of fees and FMB stamping of receipt: 15 working days for FMB technical review and mapping evaluation, 2 working days for the FMB Director's endorsement of the Complete Staff Work to the Supervising Undersecretary of the FMB, and 3 working days for the Supervising Undersecretary's approval. The clock stops while deficiencies are being corrected and resumes upon complete resubmission. Process flow: Annex G.

SECTIONS 10 to 14

The FMB and DENR Field Offices provide technical assistance, including identification of potential areas (Sec. 10). The SFLMA Terms of Reference are in Annex H (Sec. 11). Sections 4, 5.6, 11 and 15 of DAO 2025-22 and Section 2 of DAO 2026-07 are amended, modified or repealed accordingly (Sec. 12). Separability (Sec. 13) and effectivity (Sec. 14).

Annex H: Key Terms of the SFLMA

  • Within one year of the agreement: joint ground survey with the DENR Field Office, boundary monuments tied to PRS 1992, and a 4 ft by 8 ft project signboard.
  • The CNC or ECC under the Philippine EIS System is a post-condition due within one year of notarization.
  • Permanent infrastructure and roads may be built only if authorized in the approved SFLMP or PDMP and upon submission of the corresponding ECC or CNC.
  • No cutting of trees in protection forest, including slopes of 50% or more and 40-meter strips along riverbanks (20-meter buffer for streams at least 5 m wide); naturally grown trees are retained except where extremely necessary under the plan.
  • Compliance with RA 9003, RA 9275 and RA 8749; protection of endangered flora and fauna; fire and encroachment prevention.
  • Priority employment for indigenous peoples and upland communities; respect for ancestral domain rights; a registry of dependent families furnished to the CENRO.
  • Use of water requires an NWRB permit. No subleasing, transfer or boundary change without DENR approval.

Annexes

A: Application form. B: Proof of authority to file. C: Mapping requirements and DENR-Proponent Joint Survey Report. D: PDMP and SFLMP outline, including an environmental impact assessment section. E: Affidavit of Undertaking for NGP overlaps. F: Waiver of rights, right to use and no objection. G: Process flow. H: SFLMA terms of reference.

Source: User-uploaded official DENR PDF (DAO-2026-38, 42 pages). In the uploaded copy, pages 36 and 37 are identical and Annex H items 5 to 9 do not appear; consult the official DENR issuance for those provisions.

Important Notice

EnviSynergy exercises due diligence in researching and summarizing this policy. This summary is provided for general reference only and does not constitute legal advice or an official interpretation of the issuance. The policy may have been amended, superseded, or clarified after publication, and this summary may not capture every provision of the original text. For the complete, accurate, and most current version, users are advised to consult the Department of Environment and Natural Resources (DENR) or the relevant issuing agency directly before making any compliance or project decision.

Policy Details

ReferenceDAO 2026-38
IssuedSeptember 17, 2026
StatusIn effect
Issuing AgencyDepartment of Environment and Natural Resources (DENR)

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