Republic of the Philippines
HOUSE OF REPRESENTATIVES 3"
Quezon City

48" Congress
First Regular Session

2893
HOUSE BILL NO.

Introduced by Hon. Josephine Y. Ramirez Sato

EXPLANATORY NOTE

The Philippines is one of seventeen (17) “megadiverse countries” which
together host 70-80% of the world's life forms and is believed to harbor more
diversity of life than any other country on earth ona per hectare basis. However,
the country's biological diversity ("biodiversity") faces serious threats and
concrete actions are needed to implemented to ensure, the its continued
existence, as well as those of the numerous services and benefits provided by
healthy and well-functioning ecosystems.

Article Il, Section 16 of the Constitution declares that it is the duty of the
State to “protect and advance the right of the people to a balanced and healthful
ecology in accord with the rhythm and harmony of nature.” Biodiversity
conservation results in heatthy and well-functioning ecosystems, which also
contribute to climate change mitigation as well as to disaster, risk reduction and
mitigation.

The country’s framework and roadmap to conserving biodiversity is
detailed in the updated Philippine Biodiversity Strategy and Action Plan
(PBSAP) 2015-2028 adopted in 2015. A product of multi-sectoral and multi-
stakeholder participatory consultations, the PBSAP identifies ‘specific program



interventions, targets and indicators, including the estimated costs for the
activities needed to protect and conserve Philippine biodiversity.

The total cost of implementing the PBSAP 2015-2028 is estimated to
Tange from US$7.4 billion to US$8.6 billion while the projected appropriations
of the government agencies for the cost of activities is only USS 1.5 billion,
resulting in a financial gap of approximately eighty per cent (80%)." Given this
significant deficit, all potential and feasible sources of financing must be tapped

to help bridge this finance gap and fully carry out the PBSAP for the benefit of
all.

In this regard, government income from energy resource development
presents a viable source to support the implementation of the PBSAP. One in
Particular is the now PhP183 billion? Special Fund created under Section 8 of
Presidential Decree No. 901? composed of the royalties, rentals, production
share on service contracts and similar payments to the government for the
exploration, development and exploitation of energy resources. The Special
Fund is more popularly known through one of its components, the “Malampaya
fund,” which consists of the government share from the Malampaya Deepwater
Gas-to-Power Project under Service Contract No. 38.

Biodiversity conservation is an inherent component of energy
development in view of the State policy to “to rationalize, integrate, and
coordinate the various programs of the Government towards self-sufficiency
and enhanced productivity in power and energy without sacrificing
ecological concerns."*

Even with proper environmental impact mitigation measures in place,
energy resource exploration and development activities can have a lasting
adverse effect on the surrounding ecosystems, landscapes and seascapes.
Also, pollution from the use of non-renewable energy resources directly affects

Biodiversity Finance Initiative ("BIOFIN™) project of the United Nations Development Programme (UNDP)
2 According to Department of Budget and Management (DBM) Secretary Benjamin Diokno, the 2016 figure for
2°CREATING AN ENERGY DEVELOPMENT BOARD, DEFINING [13 POWERS AND FUNCTIONS, PROVIDING
FUNDS, THEREFOR, AND FOR OTHER PURI
‘Republic Act No, 7638 “Department of Energy Act of 1992" (8 December 1992), Section 2(b)


wildlife and their habitats. Greenhouse gas emissions from the use of non-
renewable energy resources likewise contribute to climate change, which, in
turn, drives and aggravates biodiversity loss.

Indeed, there is a nexus between ‘energy resource development and
biodiversity. Government income derived from the exploration and use of
energy resources in the Philippines should contribute to bridging the
biodiversity conservation finance gap.

The use of Special Fund should also be used to address energy needs
of remote and isolated communities, especially in island provinces, who
continue to be without electricity or are underserved, in order to help spur local
and regional development. Where viable and appropriate, the use of renewable
energy resources should be prioritized.

In view of the foregoing, the immediate passage of this bill is earnestly

JQSEPHIVE Y. RAMIREZ SATO
presenta
Lone DisMict, Occiderttal Mindoro

sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18 Congress
First Regular Session

HOUSE BILL NO. 2893

Introduced by Hon. Josephine Y. Ramirez Sato

AN ACT AUTHORIZING THE USE OF THE SPECIAL FUND COMPOSED
OF THE GOVERNMENT SHARE FROM THE EXPLORA TION,
DEVELOPMENT AND EXPLOITATION OF ENERGY RESOURCES FOR
RENEWABLE ENERGY DEVELOPMENT AND BIODIVERSITY
CONSERVATION ACTIVITIES, AMENDING FOR THE PURPOSE SECTION
8 OF PRESIDENTIAL DECREE NO. 910 ENTITLED “CREATING AN
ENERGY DEVELOPMENT BOARD, DEFINING ITS POWERS AND
FUNCTIONS, PROVIDING FUNDS, THEREFOR, AND FOR OTHER
PURPOSES” AND SPECIFYING THE USE OF THE SPECIAL FUND FOR
BIODIVERSITY CONSERVATION, AND FOR OTHER PURPOSES

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

Section 1.- 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
fully carry out the functions and objectives of the Board shatl be
appropriated every fiscal year in the General Appropriations Act.

All 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 Petroteum 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 form part of a Special Fund to be used to finance energy
resource development and exploitation programs and projects of
the government, RENEWABLE ENERGY DEVELOPMENT FOR
REMOTE AND ISOLATED COMMUNITIES ESPECIALLY IN
ISLAND PROVINCES, BIODIVERSITY CONSERVATION
ACTIVITIES, AND TO SUPPORT THE PLANS AND PROJECTS
OF THE 107 LEGISLATED PROTECTED AREAS AS
CONTAINED IN RA 11038 OR THE EXPANDED NATIONAL
INTEGRATED PROTECTED AREAS SYSTEM ACT OF 2018
President].”

Section 2. Implementing Rules and Regulations. - The Department of Energy,
in coordination with the Department of Environment and Natural Resources and
other concemed government agencies and members of the civil society, shall,
within six (6) months from the effectivity of this Act, promulgate the necessary
rules and regulations for the enforcement of the provisions of this Act.

Section 3. Repealing Clause. - All laws, decrees, executive orders, rules and
tegulations or parts thereof inconsistent with or contrary to the provisions of this
Act are hereby repealed or modified accordingly.


Section 4. Separability Clause. - tf any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions hereof which are not
affected shall continue to remain in full force and effect.

Section 5. Effectivity Clause. - This Act shall take effect fifteen (15) days

following completion of its publication in at least two (2) newspapers of general
circulation.

Approved,