Republic of the Philippines
HOUSE OF REPRESENTATIVE:
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 6996

Introduced by Representative ROSE MARIE ‘BABY’ J. ARENAS.

EXPLANATORY NOTE

The State recognizes energy as an essential element for the attainment of
sustained national development and progress. To attain this objective, it is the policy of
the State to provide a program of human resources development in energy sector to
achieve and maintain the necessary reservoir of talent and human resources that will
sustain its drive for accessible, affordable and sustainable electricity in various parts
and sectors of the society.

It is the duty of the State to establish, promote and support programs leading to
the realization of this objective, such as scholarship programs, improvement of the
quality of energy education, popularization and sustainability of energy culture, and
provision of incentives for pursuing careers in energy and its allied degree programs

In view of the foregoing, immediate approval of this Bill is strongly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 6996

Introduced by Representative ROSE MARIE “BABY” J. ARENAS

AN ACT
PROVIDING FOR A MAGNA CARTA FOR WORKERS IN THE
ENERGY SECTOR OF THE PHILIPPINES, AUTHORIZING THE
COLLECTION AND APPROPRIATION OF FUNDS THEREFOR, AND
FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as the “Magna Carta for Workers
in the Energy Sector of the Philippines.”

SEC. 2. Declaration of Policy. - The State recognizes energy as an essential
element for the attainment of sustained national development and progress. To attain
this objective, it is hereby declared the policy of the State to provide for a program of
human resources development in energy sector to achieve and maintain the
necessary reservoir of talent and manpower that will sustain its drive for accessible,
affordable and sustainable electricity in various parts and sectors of the society.

The State shall establish, promote and support programs leading to the
realization of this objective, such as scholarship programs, improvement of the quality
of energy education, popularization and sustainability of energy culture, and provision
of incentives for pursuing careers in energy and its allied degree programs.

SEC. 3. Definition of Terms.

(a) Department — refers to the Department of Energy (DOE) created pursuant
to Republic Act No. 7638.


(b) Department's Attached Agencies - the attached agencies of the

Department shall include, but not limited to, the National Electrification
Administration (NEA), National Power Corporation (NPC), National
Transmission Corporation (TransCo), Philippine National Oil Company
(PNOC), and Power Sector Assets and Liabilities Management (PSALM).

(c) Energy Activities and Projects — all systematic activities and projects which

are closely concerned with the energy exploration, development,
generation, transmission, distribution, utilization and commercialization of
energy resources including the dissemination and application of scientific
and technical knowledge in all fields of energy such as, but not limited to,
coal mining, oil and petroleum, renewable energy, gas, alternative energy
technologies, bio-energy, electrification and all undertakings that are
necessary for the proper, effective and efficient implementation of the
Philippine Energy Plan (PEP) formulated by the Department duly approved
by the President of the Philippines.

(d) Energy Workers or Personnel — shall be composed of personnel as

classified below:

1.) Department's Workers — refers to all officials and personnel of the
Department who are directly responsible in the planning, formulation,
processing, execution, monitoring and evaluation of energy programs,
activities and projects including the Energy Training Institute;

2.) Department's Attached Agencies Workers - refers to all officials and
personnel of the Department's attached agencies who are directly
responsible in the planning, formulation, processing, execution,
monitoring and evaluation of energy programs, activities and projects
and as defined in their respective Charters; and

3.) Electrification Workers — refers to all officials and personnel of the
different Electric Cooperatives duly registered with the National
Electrification Administration and Cooperative Development Authority.
The personnel includes, among others, those with permanent or regular
‘employment, and those barangay electrification workers accredited and
‘outsourced workers hired by the Electric Cooperative concerned
pursuant to guidelines promulgated by the Department.

SEC. 4. Energy Career System. — A career system for energy personnel in
the service of the government shall be formulated by the Department in coordination
with the Civil Service Commission (CSC) and the Department of Budget and
Management.


SEC. 5. Classification of Energy Personnel. —- Energy personnel may be

classified in the following categories:

(a) Energy managers, supervisors, policy-makers, and planners - Those who
are graduate degree holders or have at least ten (10) years of managerial
and supervisory experience or are performing executive, managerial,
planning and policy-making functions to effectively carry out the energy
felated activities and projects as defined in Section 3(c) of this Act.

Provided, That for personnel who occupy third level positions,
comprised of above Division Chief to Undersecretary and their equivalents,
must be appointed by the President of the Philippines to the appropriate
Career Executive Service Officer (CESO) rank in accordance to the
pertinent policies and regulations promulgated by the Career Executive
Service Board (CESB);

(b) Members of the energy career system;

(c) Mining and petroleum engineers, geologists, engineers, scientists,
inspectors, and researchers. — Those who are at least undergraduate or
bachelor’s degree holders in any of the engineering, law, public
administration, economics and its allied fields and are involved in the
conduct of inspections, enforcement, evaluation and monitoring of energy
activities and projects as defined under Section 3(c) of the act including
those engaged in research and development on energy sector; and

(d) Technicians and related energy personnel. — Those who obtained at least
twelve (12) units in public administration, engineering, sciences,
economics, social sciences, information and communication technology
(ICT) and allied technical/vocational courses or any appropriate training as
determined by the Secretary of the Department and are providing
administrative and support services to energy personnel enumerated in the
three (3) preceding sub-sections. The related energy personnel herein
shall also include those workers involved in the audit, enforcement,
evaluation and monitoring of the technical, financial, legal and socio-
economic aspects of any energy program, project and activities.

SEC. 6. Salaries. - The existing law on salary scales of government

employees shall not apply in determining the salary scale of energy personnel as
defined in Section 5 of this Act. A new salary scale shall be developed by the
Department in consultation with the Department of Budget and Management (DBM)
and the Civil Service Commission (CSC), subject to the approval of the President of
the Philippines.

SEC. 7. Other Benefits. — Notwithstanding Section 12 of Republic Act No.

6758, energy personnel defined under Section 5 of this Act shall receive the following:

(2) Honorarium. - Energy personnel who rendered services beyond the
established regular workload of managers or executives, mining and


petroleum engineers, geologists, engineers, scientists, researchers,
inspectors and technicians whose broad and superior knowledge,
expertise or professional standing in a specific field contributes to
productivity and innovativeness shall be entitled to receive honorarium
subject to rules to be set by the Department.

The Chairs, Vice Chairs, Members and Secretariat of governing
boards or technical committees of the Department created by law and
regulations such as, but not limited to, the National Renewable Energy
Board (NREB) and Renewable Energy-Review and Evaluation Committee
(RE-REC) under Republic Act No. 9513 and its Implementing Rules and
Regulations and its subsequent issuances, the National Biofuels Board
(NBB) under Republic Act No. 9367, Review and Evaluation Committee of
the Philippine Energy Contracting Round (REC-PECR) under Presidential
Decree No. 1442 and its subsequent issuances and implementing
guidelines, including that of the Department's attached agencies, shall be
entitled to reasonable honorarium as prescribed by the Department of
Budget and Management, and reimbursement of actual expenses incurred
for their attendance during meetings, seminars, conferences and official
functions subject to usual accounting and auditing rules and regulations.

(b) Share from Government Shares, Fees and Charges from Supervision

and Regulation. - Energy personnel shall be entitled to receive share from
government shares, fees and charges from supervision and regulation
‘subject to guidelines of the Department. The share from the government
shares shall be on a sixty percent-forty percent (60%-40%) basis in favor
of the government and the personnel involved in energy programs,
activities and projects which has been produced or undertaken during the
regular performance of their functions.

For the purpose of this Act, government share shall be defined as a
share in the proceeds of payments arising from the energy exploration,
development, generation, transmission, distribution, utilization and
commercialization of energy resources in various sectors while share in the
fees and charges from supervision and regulation in the downstream oil
industry shall refer to the sum charged and collected from
acknowledgements, applications, certifications, endorsements, processing
fees, violation fines/penalties and other reasonable payments in
connection with the enforcement of energy laws and implementation of
program, activities and projects in the downstream oil industry;

(c) Hazard Allowance. — Energy personnel involved in hazardous

undertakings or assigned in hazardous workplaces to conduct periodic
inspection, evaluation and monitoring of energy related projects and
activities shall be paid hazard allowances ranging from ten (10%) to thirty
(30%) percent of their monthly basic salary depending on the nature and
extent of the hazard involved. The following shall be considered hazardous
workplaces:


(1) Radiation-exposed laboratories and service workshops
(2) Remote/depressed areas

(3) Areas declared under a state of calamity or emergency
(4) Strife-torn or embattled areas

(5) Laboratories and other disease-infested areas

(6) Electrical machine and mechanical rooms

(7) Pressure vessels and other steam generating facilities

(8) Areas, establishments or energy and energy-related facilities where
energy personnel or inspectors are directly or imminently exposed to
hazardous vapors, products and toxic fumes (and substances) such as,
gasoline stations, oil depots, terminals, auto-LPG dispensing stations
and gas refilling plants

(d) Subsistence Allowance. — Energy personnel shall be entitled to full
‘subsistence allowance equivalent to three (3) meals a day, which may be
computed and implemented in accordance with the criteria to be provided
in the implementing rules and regulations. Those assigned out of their
regular work stations shall be entitled to per diem in place of the allowance;

() Laundry Allowance. — Energy personnel who are required to wear a
prescribed uniform during office hours shall be entitled to a laundry
allowance of not less than One hundred fifty pesos (Php150.00) a month;

(f) Housing and Quarter Allowance. — Energy Personnel who are on duty in
laboratories, energy research and development centers and other
government facilities shall be entitled to free living quarters within the
government facility where they are stationed: Provided, That the personnel
have their residence outside of the fifty (50)- kilometer radius from such
government facility;

(g) Longevity Pay. - A monthly longevity pay equivalent to five percent (5%)
of the monthly basic salary shall be paid to energy personnel for every five
(5) years of continuous and meritorious service as determined by the
‘Secretary of the Department;

(h) Medical Examination. — During the tenure of their employment, energy
personnel shall be given a compulsory free medical examination once a


year and immunization as the case may warrant. The medical examination
shall include:

(1) Complete physical examination

(2) Routine laboratory, Chest X-ray and ECG

(3) Psychometric examination

(4) Dental Examination

(5) Other indicated examination authorized by the Department Secretary
(

Family and Home Visit Allowance. — To further enhance the recruitment
process and mobility of energy personnel, a monthly family and home visit
allowance shall be provided to energy personnel comprised of free
transportation during Saturdays and Sundays or Holidays only. Provided,
That the personnel have their residence outside of the fifty (50)- kilometer
radius from work assignment;

() Incremental Performance-Based Bonus. — Energy personnel shall be
provided of at least twenty (20%) percent additional performance-based
bonus if the total annual agency accomplishment has surpassed by one
hundred (100%) percent during the period covered as verified by the
Department of Budget and Management;

(k) Collective Negotiation Agreement (CNA). — Energy personnel right to
freedom of association and collective negotiation shall be recognized
including the grant of benefits thereof in accordance with applicable rules
and regulations.

«

Hardship Allowance. - Energy workers who performed physical work
performed in hazardous environments such as, the conduct of inspections,
evaluation and monitoring of energy-related activities and projects be
covered by Hardship Allowance of Five Hundred Pesos (Php500.00) per
day; and

(m) Maternity Leave- Subject to rules and regulations promuigated jointly by
the Department and CSC, energy workers, both public and private, shall
be granted of one hundred (150) days leave, with full pay based on average
weekly or regular wages, regardless if the delivery was normal or
caesarian.

Subject to the approval by the Department Secretary, an additional
maternity leave of thirty (30) days, without pay, can be availed of, at the
option of the employee.


SEC. 8. Non-Department Personnel. - Energy personnel not employed by
the Department such as, but not limited to, the personnel of the Affiliated Energy
Centers (AECs), comprised of State Universities and Colleges (SUCs), government
research and development institutions or consortium thereof, duly accredited by the
Department in accordance with its relevant policies and guidelines who are involved
in energy activities and projects including the officials and faculty members of State
Universities and Colleges under Section 10 of this Act, may avail of the benefits under
this Act upon certification of the Secretary of the Department.

The existing Affiliated Renewable Energy Centers (ARECs), in good standing,
may be converted to AECs subject to the appropriate guidelines, qualifications,
requirements and processes to be issued by the Department Secretary.

SEC. 9. Scholarships and Grants. - Energy personnel in public and private
sectors shall be entitled to avail of scholarship benefits and grants pursuing
undergraduate, graduate, post-graduate or training courses in accordance with a
Scholarship Program to be implemented by the Department. Grantees of the program
may study within the Philippines or abroad provided that the Department shall provide
strict measures to ensure their return to the country to render the service obligation.

Recipients of undergraduate scholarships shall, after graduation, be required
to render service in the government for the equivalent number of years that they
availed of their scholarships

Scholarship privileges may be on a full-time or part-time basis and shall include
tuition fee, book allowance, transportation allowance, monthly stipend, dissertation
grants, insurance and the payment of regular salary and other benefits.

For this purpose, the Human Resource Development Council created under
Republic Act No. 8248 shall formulate the rules and regulations to implement the
Scholarship Program provided in this Act.

SEC. 10. Offering of Energy Related Degree Programs and Trainings in
Higher Education Institutions. To further enhance the implementation of the
policies under Section 2 of this Act, offering of energy related degree programs shall
be mandatory to State Universities and Colleges (SUCs) with mandates and
curricular offerings or programs provided in their respective Charters that include,
among others, energy, geology, science and technology. Other State Universities and
Colleges including private higher education institutions shall also be encouraged to
offer energy related degree programs.

To fully implement this provision, SUCs offering energy related programs shall
be entitled to automatic additional budget of not less than five (5%) percent of their
respective annual appropriations to be used for the personnel services, MOOE and
capital outlay necessary to ensure sustainability of the energy related degree
programs in their respective schools. Furthermore, the Secretary of the Department
or his/her authorized representative shall be member of the governing board of SUCs
and private institutions offering energy related programs to ensure that it shall be


complementary and contributory to the Philippine Energy Plan and thrusts of the
national government. The Secretary or his/her duly authorized representative shall
be entitled to the rights and privileges of a regular member of the governing board
pursuant to Republic Act No. 8292, otherwise known as the “Higher Education
Modernization Act of 1997” and the charters of SUCs or by-laws and policies of the
private higher education institutions concerned.

SEC. 11. Establishment, Management and Operations of the Energy
Training Institute (ETI). The Department shall establish, manage and operate
Energy Training Institute (ET!) hereinafter referred to as Institute, in any of the offices
of the DOE and its attached agencies and/or in various locations as the Board may
determine, to cater the professional, technical, administrative or managerial and
executive enhancement and training needs of the energy personnel and interested
individuals in the energy sector.

The Institute is mandated to offer short-term technical, scientific, vocational,
‘supervisory, managerial and executive courses and trainings in energy such as, but
Not limited to, coal mining, oil and petroleum, renewable energy, gas, alternative
energy technologies, bio-energy, electrification and other skills and competency
enhancements as the Board may deem it proper.

A Board of Trustees of the Energy Training Institute is hereby created
hereinafter referred to as the ETI-BOT or Board composed of the Department
Secretary or his authorized representative not lower than an Assistant Secretary as
Chairman and Presiding Officer, Secretary/ies or their respective representatives not
lower than Assistant Secretaries or their equivalents of the Technical Education and
Skills Development Authority (TESDA), Department of Science and Technology
(DOST), Department of Trade and Industry (DTI), Commission on Higher Education
(CHED), and Department of Labor and Employment (DOLE), the President of the
Employees Association of the Department, and at least three (3) private sector
representatives appointed by the President of the Philippines, as members.

The Board shall serve as the highest policy-making body of the Institute and
shall discharge the following powers and duties:

1. To promulgate and implement policies in accordance with the declared
State policies, thrusts and priorities in the Philippine Energy Plan;

2. To promulgate rules and regulations not contrary to law as may be
necessary to carry out the purposes and functions of the Institute;

3. To receive and appropriate all sums as may be provided for the support of
the Institute in the manner it may determine in its discretion, in order to
carry out the purposes and functions of the Institute;

4. To import economic, technical books and/or publications, equipment and
other technologies necessary in the delivery of training course and
programs;


5. To receive in trust legacies, gifts and donations of real and personal
properties of all kinds and to administer and dispose of the same when
necessary for the benefit of the Institute and subject to the limitations,
directions and instructions of the donor, if any;

6. To fix fees and other necessary charges such as, but not limited to,
matriculation fees, graduation fees and laboratory fees, as the Board may
deem proper to impose. Such fees and charges, including government
subsidies and other income generated by the Institute, shall constitute
special trust funds and shall be deposited in any authorized government
depository bank, and all interests that shall accrue therefrom shall form part
of the same funds for the use of the Institute.

Any provision of existing laws, rules and regulations to the contrary
notwithstanding, any income generated by the Institute from fees and other
charges, shall be retained by the Institute, and may be disbursed by the
Board of Trustees for instruction, maintenance, capital outlay, salaries,
honorarium and benefits of the Officials, trainers, fellows and employees of
the Institute.

7. To authorize the construction or repair of its buildings, machinery,
equipment and other facilities, and the purchase and acquisition of real
property, including necessary supplies, materials and equipment;

8. To appoint and prescribe the duties and functions, upon recommendation
of the Executive Director, Deputy Executive Directors, Program Managers,
Trainers, Fellows and Employees of the Institute:

9. To fix and adjust salaries and terms of office of the Executive Director,
Deputy Executive Directors, Trainers, Fellows and administrative officials
and employees, subject to the provision of this Act, and such other duties
and conditions as it may deem proper; to grant them, at its discretion,
leaves of absence under such regulations as it may promulgate, any
provision of existing law to the contrary notwithstanding; and to remove
them for cause in accordance with the requirements of due process of law;

10.To approve the curricula, instructional programs and rules of discipline
drawn by the Executive Director;

11. To set policies on admission and completion of trainees and clients;

12.To delegate any of its powers and duties provided for hereinabove to the
Executive Director and/or other officials of the Institute as it may deem
appropriate, so as to expedite the administration of the affairs of the
Institute;

13.To collaborate or develop consortia and other economic forms of linkages
with local government units (LGUs), energy contractors/operators,


institutions and agencies, both public and private, local and foreign, in the
furtherance of the purposes and objectives of the Institute; and

14. To set up the adoption of modern and innovative modes of transmitting
knowledge such as the use of information technology, the dual learning
system, open or distance education and community laboratory for the
promotion of greater access to the trainings and services of the Institute.

The Institute shall be headed by an Executive Director and assisted by Deputy
Executive Directors for Programs, Operations, and Research and Development
and/or such other fields as the BOT may deem it necessary.

The Executive Director shall render full-time service and shall be appointed by
the Board, subject to the guidelines, qualifications and standards set by the Board,
upon recommendation of a duly constituted search committee. The Executive
Director shall have a term of six (6) years and shall be eligible for reappointment for
another term subject to the qualifications and requirements promulgated by the
Board. The Board shall have the power to designate Officer-in-Charge or officials in
Acting capacity in case of vacancy and/or pending the appointment of the regular
Official/s concerned.

The Chair and members of the Board shall not receive any salary but shall be
entitled to reasonable honorarium and reimbursements for actual and necessary
expenses incurred, either in their attendance to meetings of the Board or in
connection with other official business authorized by resolution of the Board, subject
to existing laws and regulations.

The Board shall regularly convene once every three (3) months. Whenever
necessary, the Chairperson of the Board may call, upon three (3) days’ prior written
notice, a maximum of two (2) special meetings within the same period. A quorum of
the Board shall consist of majority of all its members.

The importation of economic, technical and books or publications, equipment,
apparatus and technologies, which is for economic, technical, vocational and
scientific, purposes, made by the Institute upon certification by the DOE, shall be
exempt from customs duties in accordance with the provisions of the Tariff and
Customs Code of the Philippines, as amended.

Donations in any form to the Institute shall be exempt from the donor's tax and
the same shall be considered as allowable deduction from the gross income in the
computation of the income tax of the donor, in accordance with the provisions of the
National Internal Revenue Code of 1997, as amended

Such amount necessary for the implementation of this provision shall be
incorporated in the annual budget of the Department.

SEC. 12. Honorarium for Other Services. — Mining and petroleum engineers,
geologists, engineers, scientists, researchers, technologists, inspectors, technicians


and other energy officials and personne! shall be allowed to render consultancy
services to the private sector and shall be entitled to receive such honorarium that
may be paid to them by the private entity concerned. Such payments shall be over
and above their salary from the government during the period of the consultancy and
shall not be considered as double compensation: Provided, That the consultancy
work will not jeopardize or adversely affect the operations or activities of his/her
originating office or constitute conflict of interest of his/her duties and responsibilities
therein: Provided, further, That the Secretary of the Department approves such
consultancy.

SEC. 13. Detail to the Private Sector and Industry Immersion. —
Notwithstanding to the provisions of existing laws, officials, mining and petroleum
engineers, geologists, engineers, scientists, researchers, technologists, inspectors,
technicians and energy related personnel who are employed on a regular basis in the
government, whether or not they are conferred any rank under the Energy Career
‘System, shall hereby be allowed secondment to any private entity whenever such
services are required: Provided, That the duration of such service with a private entity
shall not exceed one (1) year: Provided, further, That the detail or secondment of said
personnel will not hamper or adversely affect the operations or activities of his/her
originating office or constitute conflict of interest of his/her duties and responsibilities
therein: Provided, finally, That the head of the agency approves such detail or
‘secondment.

During the period of such secondment, payment of the seconded employee
shall be borne by the seconding private entity covered by a contract. The period of
secondment shall be used in computing the retirement benefits but not for the
commutation of leave credits earned. Such secondment shall not likewise affect his
security of tenure nor result in the loss of seniority rights subject to guidelines on
‘secondment in the IRR of this Act.

SEC. 14. Exemption from the Attrition Law and Civil Service Rule on
Nepotism. — Except for third level positions, appointment of energy personnel to
Positions equivalent to salary grade ten (SG 10) and above shall not be covered by
the Attrition Law and Civil Service Commission (CSC) rule on nepotism in
consideration of the highly technical nature of these positions.

SEC. 15. Provision Against Double Benefits. - Energy personnel already
receiving the same benefits under any other law shall not be allowed to avail of the
benefits under this Act unless they submit in writing their intention to withdraw the
benefits already being received and opt for those provided hereunder.

SEC. 16. Highest Basic Salary Upon Retirement. - Upon retirement, the
energy personnel concerned shall automatically be granted one (1) position higher
than his/her current position and his/her retirement benefits shall be computed on the
basis of the equivalent salary of the next higher position/rank.

Upon retirement, the energy personnel concerned shall also be granted
retirement gratuity based on the total length of service (converted into gratuity


months) multiplied by the highest basic salary of the higher position/rank provided
above in accordance with the provisions of Republic Act No. 1616 or “An Act Further
Amending Section Twelve of Commonwealth Act Numbered One Hundred Eighty-
Six, as Amended, By Prescribing Two Other Modes of Retirement and For Other
Purposes.”

Provided, That the existing retirement benefits shall continually be applied
should the same be more higher or advantageous to the personnel concerned.

SEC. 17. Prohibition Against Diminution and/or Elimination. — Nothing in
this law shall be construed to eliminate or in any way diminish benefits being enjoyed
by energy personnel at the time of the effectivity of this Act.

SEC. 18. Hiring of Retired Energy Personnel. An employee retired under
any existing law, who, in the judgment of the Secretary of the Department, possesses
managerial or technical qualifications and the capability to undertake energy related
activities, may be rehired on contractual basis without refunding the unexpired portion
of the gratuity and accumulated leave benefits received by him/her from the
Government: Provided, That no qualified energy expert or applicant is available to
undertake said energy activities.

SEC. 19. Government Scholars and Training Grantees. - Graduates or
grantees of government energy scholarship programs or trainings shall be given
temporary waiver of CSC eligibilities for at least two (2) years and preferential access
to financial grants from any government agency authorized to extend grants and
loans with easy terms from government financing institutes, for energy projects which
are viable and in line with the development thrust of the country.

SEC. 20. Enhancement of Corporate Social Responsibility (CSR)
Programs in the Energy Sector. - The Department shall devise mechanism that
‘shall enhance the Corporate Social Responsibility (CSR) Programs of the energy
‘sector which shall redound to the benefit of the general welfare of the host local
government units (LGUs) and of energy activities or projects. A host LGU/s shall
include the political subdivision such as, the barangay/s, municipality/ies and
province/s where the energy project is located.

The CSR commitment fund of every energy contractor shall be determined by
the Department and the same be integrated in the service or operating contracts to
be executed between the Department and the contractor subject to applicable laws,
Tules and regulations.

The duly accredited Affiliated Energy Centers shall be given preference as
partner of energy contractors in the implementation of the CSR programs in their
respective areas consistent with relevant policies to be issued by the Department.

SEC. 21. Energy Awards. - There shall be established Energy Awards
Committee which shall confer annually the Energy Awards for outstanding


achievements and excellence or original contribution to energy development,
exploration, commercialization, utilization, transmission and distribution.

The Committee, to be constituted by the Secretary of the Department within
fifteen days upon the effectivity of this Act, shall promulgate the guidelines in
implementing this Section and shall specify the categories of awards to be given and
the amount of financial reward for each category. Further, the Chair, Vice Chair and
Members including the Technical Staff of the Committee shall be entitled with the
benefits provided under 2 paragraph of Section 7 (a) of this Act.

SEC. 22. Congressional Commission on Energy. — There is hereby
created a Congressional Commission on Energy (Energy Com) to review and assess
among others, the state of the Philippine human resources development in energy
sector, the state of computerization and information technology in the energy
activities and projects, and the implementation of this Act.

The Commission shall be composed of five (5) Members of the House of
Representatives and five (5) Members of the Senate. It shall be Co-chaired by the
Chairpersons of the Committee on Energy of both Houses of Congress. Such
congressional review shall be undertaken at least once every two (2) years.

SEC. 23. Authority of the Department to Collect, Manage and Disburse
Income. - To supplement the implementation of this Act, the Department is hereby
authorized to collect any amount for the royalties from the energy activities and
Projects due for the government as provided under Section 7(b) including, among
others, the application, processing or supervision and regulation fees, signing bonus,
training assistance, scholarship programs, and development assistance and such
other reasonable fees and charges for the application and awarded service and
operating contracts.

All incomes generated by the Department shall be deposited in trust accounts
in the authorized government depository banks to be exclusively managed and
disbursed by the Department subject to usual accounting and auditing rules and
regulations.

To attain the mandate and objective of this provision, the Secretary of the
Department shall create separate Compliance Services with divisions for renewable
energy resources, conventional energy resources, and the DOE-administered funds
from power producer/energy resource developers and such other units. The
organizational staffing patterns of these Compliance Services and its divisions or
units shall be submitted to the Department of Budget and Management for approval.

SEC. 24. Establishment and Management of the Administrative Regional
Offices. — To further enhance the efforts, and ensure proper and efficient protection
and utilization of energy resources there is a need to strengthen the regulatory
powers and functions of the Department of Energy. Toward this end, the Secretary of
the Department is hereby authorized to create a Regional Office for every
administrative regional subdivision in the Philippines with adequate manpower,


facilities, equipment and resources necessary in carrying out their respective
mandates, regulatory authority, and duties.

The Administrative Regional Offices shall be under the direct administrative
supervision and control of the Office of the Secretary or any designated official of the
Department and each shall be headed by a Regional Director who shall be assisted
by at least two (2) Assistant Regional Directors and Chiefs and staff of various
administrative and technical divisions in accordance with the organizational staffing
patterns approved by the Department of Budget and Management.

The current employees of the Department of Energy in its field offices shall be
given priority in the hiring and filling-up of positions in various Administrative Regional
Offices so created.

Hiring, promotions and other personnel actions of the officials and employees
shall be subject to applicable laws, rules and regulations.

SEC. 25. Research and Development (R&D) on Energy. The Department
‘shall, in consultation with the stakeholders, formulate a short-term, medium-term and
long-term Research and Development (R&D) on Energy complementary to the
Philippine Energy Plan (PEP) and local and national development plans and thrusts.

To fully implement this provision, the Department Secretary is hereby
authorized to create and prescribe the functions and duties of the Energy Research
and Development Office (ERDO) under the direct supervision of the Office of the
Secretary or his authorized representative. The organizational and staffing pattern
including the hiring of the Director, Division Chiefs and other personne! of the ERDO
shall be subject to the approval of the DBM and in accordance with the pertinent Civil
Service Commission and other applicable laws, rules and regulations.

SEC. 26. Funding. - The amount necessary to fully implement this Act shall
be provided in the General Appropriations Act (GAA) of the year following its
enactment into law under the budgetary appropriations of the DOE and concerned
agencies.

SEC. 27. Annual Report. - The Secretary of the Department shall submit to
the Congressional Commission on Energy, an annual report of the status of
implementation of this Act.

SEC. 28. Implementing Rules and Regulations (IRR). — The Secretary of
the Department, in consultation with government and nongovernment agencies
involved in energy activities and projects, shall formulate the implementing rules and
regulations to carry out the provisions of this Act.

SEC. 29. Repealing Clause. - All laws, decrees, orders, rules and
regulations, or parts thereof, inconsistent with the provisions of this Act are hereby
amended or repealed accordingly.


BVaousune

SEC. 30. Separability Clause. - The provisions of this Act are hereby
declared separable. In the event that any provision hereof is rendered
unconstitutional, those that are not affected shall remain valid and effective.

SEC. 31. Effectivity. — This Act shall take effect immediately after publication
in two (2) newspapers of general circulation.

Approved,