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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

05

ROUSE BILL NO. -_

Introduced by Rep. Winston T. Castelo

EXPLANATORY NOTE

Since the creation of the Energy Development Board in 1976 pursuant to PD No.
910 on start up appropriation of PS million, ‘the fees, revenues and receipts from any
and all source including receipts from service contracts and agreements; all money
collected from concessionaires as well as government share representing royalties,
rentals, production share on service contracts and simitar resources’ have formed part of
a Special Fund to finance energy resource development and for other purposes as the
President may direct’ — nave already ballooned to nearly reach the P80 billion threshold
as in the case of the Malampaya Natural Gas Project.

Gut until the (aw is amended, the fund is deemed part of a Special Fund well
within the Board to administer in accordance with its powers under PD No. 910 to
finance energy-related programs and projects of government. Additionally, for other such
purposes, the President may so direct use of such funds.

This bill therefore contemplates that the funds of the Malampaya Natural Gas
Project, now in the near P80 billion mark, said to be ‘floating up in budget clouds’ be
channeled to the General Fund. This may mean a shift or transfer from being a Special
Fund to a General Fund category. In this way, it shall be included in the Budget of
Expenditures and Sources of Financing (BESF) of the General Appropriations Act (GAA)
rendering the funds subject to reasonable, transparent and democratic utilization based
‘on projected expenditures.

Truth is, this bill serves as what is termed as ‘appropriations cover from
Congress’ so it will now be treated not as special fund, not as off-budget item but rather
as General Fund and as on-budget item that can be prioritized for general utilization.

justifiably cascade to address not just economic growth Hut should redound
‘general public welfare just as well

Passage of this bill is highly sought.

“WINNIE” CASTELO.
/


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BILL No. 2705

Introduced by Rep. Winston T. Castelo

AN ACT
AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE NO. 910 CREATING
AN ENERGY DEVELOPMENT BOARD, DEFINING ITS POWERS AND FUNCTIONS,
PROVIDING FUNDS, THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1 of Presidential Decree No. 910 is hereby amended to read as follows:

“Section 1. Declaration of Policy. It is declared policy of the State to achieve self-reliance
in the country's energy requirements primarily through the intensified and coordinated
exploration and development of indigenous energy resources in order to accelerate
overall economic growth and general public welfare.”

Section 8 of Presidential Decree No. 910 is hereby amended to read as follows:

“Section 8. Appropriations. The sum of Five Million Pesos out of any available funds
from the National Treasury is hereby appropriated and authorized to be released for the
organization of the Board and its initial operations. Henceforth, funds sufficient to carry
out the functions and objectives of the Board shall be appropriated every fiscal year in
the General Appropriations Act.

Alll fees, revenues and receipts of the Board from any and all sources including receipts
from service contracts and agreements such as application and processing fees,
signature bonus, discovery bonus, production bonus; all money collected from
concessionaires, representing unspent work obligations, fines and penalties under the
Petroleum Act of 1949; as well as the government share representing royalties, rentals,
production share on service contracts and similar payments on the exploration,
development and exploitation of energy resources, shall from part of the General Fund
to be used to finance energy resource development and exploitation programs and
projects of the government and for such other purposes that redound to general public
welfare as may be hereafter directed by the President.”

Approved,