The Department of Environment and Natural Resources (DENR) has issued DENR Administrative Order (DAO) No. 2026-38 dated 17 September 2026, a supplemental addendum and amendment to DAO No. 2025-22 (the rules on the Sustainable Forest Land Management Agreement, or SFLMA) and DAO No. 2026-07. Issued under the Revised Forestry Code together with the Public Service Act as amended, the telecommunications law (RA 7925), EPIRA (RA 9136) and the Renewable Energy Act (RA 9513), the Order covers forest lands outside National Parks that are suitable and available for management, development and use.

Key provisions

  • New definitions. The Order adds definitions of a Certificate of Public Convenience (CPC) or Certificate of Public Convenience and Necessity (CPCN), a Power Generation Company (an entity authorized by the ERC to operate generation facilities), a Public Utility (limited to electricity distribution or transmission, petroleum and petroleum product pipeline transmission systems, communication/cable transmission and distribution, and water pipelines), and an Investment Option.
  • Special uses. The list of special uses of forest lands now expressly includes communication station sites, energy-related facilities and infrastructure, transmission line rights-of-way, ports, tourism-related infrastructure, and mining ancillary facilities (except mine tailing ponds), among others.
  • Application requirements. The documentary requirements are revised, including a ₱10,000 application fee regardless of area and a joint DENR-proponent ground survey at the applicant's cost. For telecommunication tower applications, the coordinates of all corners of the area may be submitted instead of a GIS-generated location map.
  • Post-approval conditions. Within three (3) months from notarization of the approved SFLMA, holders must submit, where applicable, a DOE Energy Service Contract and/or Operating Contract for energy projects, CAAP clearance for communication sites and transmission lines, PCSD clearance for Palawan areas, NWRB permits for water projects, and a CPC or CPCN. The Sustainable Forest Land Management Plan and the ECC or CNC are due within one (1) year, and NCIP certification within three (3) years. The SFLMA is automatically cancelled if development under the approved plan does not start within one (1) year from issuance.
  • User's fees. Annual user's fees include ₱85,000 per communication station site, and ₱7,200 per hectare per year for energy uses including transmission lines, increasing cumulatively by 10% annually.
  • Faster processing. Complete applications are to be processed within twenty (20) working days from payment and FMB receipt, with the clock suspended while deficiencies are cured.

Who is affected

Power generation companies, renewable energy developers, transmission and distribution utilities, pipeline operators, telecommunications and tower companies, water utilities and other proponents seeking to use forest lands.

Effectivity

The Order takes effect fifteen (15) days after publication in a newspaper of general circulation and upon filing with the ONAR and the UP Law Center. Its face notes publication in the Manila Standard on 25 September 2026 and ONAR/UP Law Center acknowledgment on 29 September 2026, which points to effectivity on or about 10 October 2026.

Practical takeaways

  • Line up DOE contracts, CAAP, NWRB or PCSD clearances and CPC/CPCN filings early; the three-month post-approval window is short.
  • Budget for the escalating annual user's fee on energy and transmission areas over the SFLMA term.
  • Check for overlaps with National Greening Program, CBFMA or stewardship areas, which trigger undertakings or waivers within strict periods.

Source: Department of Environment and Natural Resources.

This alert was prepared by OS Law for general information only and is not legal advice. Please consult counsel on how these rules apply to your specific circumstances.