REPRES,

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EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No. 9544
EXPLANATORY NOTE

Under Republic Act No. 9513 or the Renewable Energy Act of 2008, it is declared the policy
of the State to:

(2) Accelerate the exploration and development of renewable energy resources such
as, but not limited to, biomass, solar, wind, hydro, geothermal and ocean energy
sources, including hybrid systems, to achieve energy self-reliance, through the
adoption of sustainable energy development strategies to reduce the country’s
dependence on fossil fuels and thereby minimize the country’s exposure to price
fluctuations in the international markets, the effects of which spiral down to almost all
sectors of the economy;

(b) Increase the utilization of renewable energy by institutionalizing the development
of national and local capabilities in the use of renewable energy systems, and
promoting its efficient and cost-effective commercial application by providing fiscal and
nonfiscal incentives;

(c) Encourage the development and utilization of renewable energy resources as tools
to effectively prevent or reduce harmful emissions and thereby balance the goals of
economic growth and development with the protection of health and the environment;
and

(d) Establish the necessary infrastructure and mechanism to carry out the mandates
specified in this Act and other existing laws.”

It is therefore imperative for the government to take a more active role in assuring adequate
supply of electricity with the use of renewable energy resources thereby reducing the country's
dependence on imported fossil fuels and mitigate the impact of climate change. Further, the
government needs to enact measures which will help ensure stable, affordable and reliable
supply of electricity to sustain the growth of the economy and of the social well-being of the
nation.

There is also an urgent need to undertake electrification projects through the development of
renewable energy sources in underserved, unserved and missionary areas.

In view of the foregoing, immediate passage of this measure is earnestly requested,

RUFUS B. IGUEZ


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No. 9544

AN ACT
CREATING THE PHILIPPINE RENEWABLE ENERGY CORPORATION, DEFINING ITS
POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFORE, AND FOR OTHER
PURPOSES

SECTION 1. Short Title. — This Act shall be known as the "Philippine Renewable Energy
Corporation Charter’.

SEC 2. Declaration of Policy. -It is the declared policy of the State to accelerate the
exploration and development of renewable energy resources to achieve energy self-reliance,
through the adoption of sustainable eneray development strategies to reduce the country’s
dependence on fossil fuels and thereby minimize the country's exposure to price fluctuations
in the international markets, the effects of which spiral down to almost all sectors of the
economy,

SEC 3. Definition of Terms. -

“Renewable Energy Resources (RE Resources) refers to energy resources that do not have
an upper limit on the total quantity to be used. Such resources are renewable on a regular
basis, and whose renewal rate is relatively rapid to consider availabilty over an indefinite
Period of ime. These include, among others, biomass, solar, wind, geothermal, ocean energy,
and hydropower confirming with internationally accepted norms and standards on dams, and
other emerging renewable energy technologies.”

SEC 4. Creation, Name, Domicile and Term. - There is hereby created a body corporate to
be known as the Philippine Renewable Energy Corporation, hereinafter referred to as the
“Corporation”, which shall promote, explore and undertake development, utilization, and
commercial operation of new, renewable, non-conventional and environment-friendly energy
sources and systems.

The principal office of the Corporation shall be determined by its Board of Directors. It may
establish such offices, subsidiaries and branches in the Philippines or abroad as its business
operations would require.

‘The Corporation shall have a term of fity (50) years from the issuance hereof, which shall
be deemed renewed for an equal period unless sooner dissolved by law.

SEC 5. Purposes. — The purpose of the Corporation shall be to promote and undertake
research, development, utilization, manufacture, sale, marketing, distribution and commercial
application of new renewable, non-conventional and environment-friendly energy sources and
systems including but not limited to biomass, geothermal, solar, hydro, ocean, wind and other
natural, non-fossil fuel based and of energy systems that use new renewable and any energy
Tesources applying new and efficient energy conversion and/or utilization technologies for
commercial application and promote their efficient utilization

SEC 6. Powers and Functions of the Corporation. - The Corporation shall have the
following powers and functions:


a) Toundertake, by itself or otherwise, exploration, exploitation and development
of all renewable energy resources of the country, including surveys and
activities related thereto;

b) To construct, install, operate and maintain renewable energy generation
facilities;

©) Toenter into contracts with any person or entity, domestic or foreign, and with
governments for the undertaking of the varied aspects of renewable eneray
resources exploitation including the acquisition, by way of purchase, lease or
rent or other deferred payment arrangements of equipment and/or raw
materials and supplies, as well as for services connected therewith under such
terms and conditions as it may deem proper and reasonable;

d) To borrow money from local and foreign sources as may be necessary for the
corporation's operations;

) To acquire assets, real or personal, or interests therein, and encumber or
otherwise dispose the same as it may deem proper and necessary in the
conduct of corporation's business;

f) To determine its organizational structure, and the number and salaries of its
officers and employees in accordance with the existing government rules and
regulations;

9) To establish and maintain offices, branches, subsidiaries, or other units
anywhere as may be needed by the Corporation and reorganize or abolish the
same as it may deem proper;

h) To exercise the right of eminent domain as may be necessary for the purpose
for which the Corporation is created;
)) Subject to approval by the owner and payment of the proper amount, to enter

private lands for conducting technical studies in connection with renewable
energy resources, their exploration, exploitation and development;

i) To acquire easement over public and private lands necessary in carrying out
any work essential to energy resources exploitation, subject to payment of just
compensation;

k) To adopt a code of by-laws to complement this Charter;

1) Toadopt and use a corporate seal which shall be judicially noticed;

m) — Toperform such acts and exercise such functions as may be necessary for the
attainment of the purposes and objectives herein specified; and
n) To perform such other functions as may be provided by law.

SEC 7. Governing Body. - The Corporation shall be governed by a Board of Directors,
hereinafter referred to as the "Board" which shall be composed of seven (7) members,
including the Ex-officio Chairman and President and Chief Executive Officer, to be appointed
by the President of the Philippines. The members of the Board shall serve for a term of one
(1) year, renewable each year upon the discretion of the President of the Philippines or until
their successors shall have been appointed and qualified. In case of any vacancy in the Board,
the same shall be filled by the President of the Philippines for the unexpired term in accordance
with the Fit and Proper Rule set by the existing government rules and regulations.

No person shall be appointed as member of the Board unless he is a natural born citizen
of the Philippines, at least thirty-five (35) years of age and of established integrity (deleted
since the Board shall be subject to the Fit and Proper Rule set by the concerned agency).

The Chairman and President and Chief Executive Officer of the Corporation shall be
appointed by the President of the Philippines.

SEC 8. Duties and Responsi s of the President and Chief Executive Officer. — The
President and Chief Executive Officer shall exercise such powers and perform such duties as
may be provided in the By-Laws or as may be vested in them by the Board.


SEC 9. Appointment, Control and Discipline of Personnel. — Any provision of law to the
contrary notwithstanding, the "Board’, upon recommendation of the President of the
Corporation, shall appoint the officers (Corporate Secretary, Compliance Officer and Internal
Auditor) of the Corporation and its subsidiaries; fix their compensation, allowances and
benefits, their working hours and such other conditions of employment as it may deem proper;
grant them leaves of absence under such regulations as it may promulgate, discipline and / or
remove them for cause; and establish and maintain a recruitment and merit system for the
Corporation and its affiliates and subsidiaries. This shall also be subject to the existing
government rules and regulations.

‘SEC 10. Privileges and Incentives. - The Corporation shall be entitled to all the incentives
and privileges granted by law to corporations engaged in renewable energy development and
operation.

The employees of the Corporation shall be entitled to all the benefits and privileges
granted to government employees subject to the existing government rules and regulations.

‘SEC 11. Appropriations. — For the initial funding requirements of the Corporation, the sum
of Five Billion Pesos (PhP5,000,000,000.00) is hereby appropriated from the General
Appropriations Act, not otherwise appropriated,

SEC 12. Reports. — The Corporation shall, within three months after the end of every fiscal
year, submit its annual report to the President. It shall likewise submit such periodic or other
Teports as may be required of it from time to time.

SEC 13. Separability Clause. — if for any reason, any section or provision of this Act is
declared unconstitutional or invalid, other sections or provisions which are not affected thereby
shall continue to be in full force and effect.

SEC 14. Repealing Clause. — All laws, bills, executive orders, administrative orders, rules or
regulations inconsistent herewith are hereby repealed, amended or modified accordingly.

SEC 15. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation.

Approved.