Republic of the Philippines
House of Representatives
Quezon Gify, Meteo Manila
EIGHTEENTH CONGRESS :
First Regular Session

6043

House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
CREATING THE SOLAR ENERGY DEVELOPMENT CENTER
AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

Because of its location near the equator, the Philippines can generate an
average of 5.1 KWh per square meter in solar energy per day.! The country has
great potential in solar development and has been ranked 1* in Asia and 5%
worldwide in solar photovoltaic system for electricity generation.? Yet, the
country still relies largely on oil-based and coal-powered plants. Not only are
these sources of energy expensive, they also produce carbon emissions which
worsen air pollution.

The Philippines must take the opportunity to utilize its location and
resources and expand its use of solar energy. The often-cited disadvantage of
high-cost production of solar energy is now a thing of the past. Studies show
that the cost of solar power has been reduced to 75% in the last seven years that
it’s now cheaper than coal.3 The solar energy sector attracted $160.8 billion in

+ «The History of Solar Energy in the Philippines,” Solar. Retrieved January 6, 2020.

http:/ /solaric.com.ph /blos lar-ener ippines,

2 Ronnel W. Domingo, “PH 5® worldwide, top in Asia solar power” Philippines Daily inquirer, January 02,
2018, Retrieved January 6, 2020. http://business.inquerer.net/2 h-Sth-worldwide-top-asia-
solar-power

3 Jeremy Berke, “Renewable energy is getting cheaper and it's going to change everything, “Word Economic
Forum, May 14, 2018. Retrieved January 6, 2020. htips:/ /www.weforum.org/agenda/2018/05/one-
simlpe-chart-shows-why-an-energy-revolution-is-coming-and-who-is-likely-to-come-out-on-top



worldwide investment in 2017 and is projected to go even higher as most
countries find potential in the innovation of such renewable energy.4

In the country, regulatory frameworks on net-metering rules and
interconnection standards have now been set as solar rooftop installations have
expanded to residential, commercial, and industrial settings. From 22 renewable
energy project in 2008, 406 projects have already been built or were being
constructed in 20165. In 2017, the board of Investments reported that renewable
energy projects totaled p267.2 billion which accounts for 43.5% of its investment
approvals.®

Given this development, the State must recognize its role in leading and
supervising the exploration and utilization of the country’s natural resources as
provided in Section 2, Article XII of the 1987 Constitution. In line with this,
Section 10 of Article XIV, provides that the State shall give priority to research
and development, invention, innovation, and their utilization; and to science and
technology education, training and services.

In recognition of this mandate, this bill thus seeks to establish the Solar
Energy Development Center which shall be the leading institution on the
research of solar energy and existing technologies for its utilization and
development. Conduct studies and develop methods on more accessible use of
solar energy, implement government programs on the allocation, distribution,
and sale of solar energy, and promote the use, research, and introduction to the
market of technologies utilizing solar energy.

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

4 Jeremy Berke and Shayanne Gal, “There’s new evidence that fossil fuels are getting crushed in the

ongoing energy battle against renewables", Business Insider, April 9, 2018. Retrieved January 6, 2020.

http://www. businessinsider.com /solar-growth-outpaces-coal-fossil-fucls-2018-4

® Connie Tan Hui Ann, “The Philippines” renewable energy sector is booming (and it could be bigger),

CNBC, August 09, 2016. Retrieved January 6, 2020. https: / /www.cn) 1016/08/09 /the-

philippines-renewable-energy-sector-is-booming-and-it-could-get-bigger.html

© Janina C. Lim, “BOI registers nearly P86B worth of project by Solar Philippines, “Business World, March

13, 2018. Retrieved January 6, 2020. http://bworldonline.com/boi-registers-nearly-p86b-worth-
rojects-solar-philippines,



Republic of the Philippines
House of Representatives
Quezon City, Meteo Manila
EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 6043

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
CREATING THE SOLAR ENERGY DEVELOPMENT CENTER
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Solar Energy
Development Center Act of 2018”

SECTION 2. Solar Energy Development Center. - The Solar Energy
Development Center (hereinafter referred to as the Center’) is hereby
established. The Center shall be attached to the Department of Energy.

SECTION 3. Purposes and Objectives. - The center shall have the following
purposes and objectives:

a. To scientifically research solar energy and existing technologies for its
utilization and development;

b. To conduct studies and develop methods on more accessible use of
solar energy;

c. To implement the government program on the allocation. Distribution
on, and sale of solar energy;


d. To promote the use, research, and introduction to the market of
technologies utilizing solar energy; and

¢. To perform such functions related to solar energy development that will
redound to the public.

SECTION 4. Board of Directors. - The power and functions of the Center shall
be vested in a Board of Trustees (hereinafter referred to as the “Board”).

a. Composition. - The board shall be composed of six (6) members who
are natural-born Filipino citizens, at least thirty (30) years old of age,
and must have recognized competence in the fields of science and
technology. The member are as follows:

1. Chairperson appointed by the President of the Philippines;
2. Two (2) members appointed by the President of the Philippines; and

3. Secretary of the Department of Energy, Secretary of Environment
and Natural Resources (DENR), and the Secretary of the Department
of Science and Technology (DOST) as ex-officio members.

b. Term. - The chairman and the two (2) members of the Board shall serve
for a term of four (4) years from the date of appointment.

SECTION 5. Powers and Duties of the Board of Directors. - The Board
shall have the following specific powers:

a. To promulgate rules and regulations, not contrary to laws, which it
considers necessary for the effective discharge of its function;

b. To receive and appropriate all sums as may be provided for the support
of the Center in any manner it may determine, in its discretion, to carry
out the purposes and function of the Center;

c. To receive in trust legacies, gift, and donations of real and personal
properties of all kinds of administer and disposes of the same when
necessary for the benefit of the Center, subject to limitations,
directions, and instructions of the donor, if any.



Such donation shall be exempt from the donor’s tax and the same shall
be considered as allowable deductions 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, as amended;
Provided, That such donations shall not be disposed of, transferred, or
sold;

d. To establish a research center for the carrying out of its function; and

e. To exercise such incidental powers as may be necessary to carry out
the functions of the Center.

SECTION 6. Executive Director. -The administration of the Center shall be
vested in an Executive Director who shall render full-time service. The Executive
Director shall be appointed by the Board. He shall have a term of four (4) years
and shall be eligible for reappointment for another term.

In case of vacancy by reason of death, compulsory retirement, resignation,
removal for cause, or incapacity of the Executive Director to perform the
functions of the Center, the Board shall have the authority to designate an
officer-in-charge of the Center within six (6) months from the date of vacancy
pending the appointment of a new Executive Director.

The Executive Director shall exercise the following powers and duties:

a. To direct the management, operations, and administration of the
Center;

b. To appoint such officers and employees, to define their duties, fix their
compensation, discipline, and dismiss any for cause, subject to the
Civil Service Commission rules and regulations; and

c. To develop arrangements for institutional capability building with
appropriate institutions and agencies, public or private, local or foreign,
and to appoint experts or specialists as consultants, researchers, as
the case may be.

SECTION 7. Appropriations. - The amount of one hundred million
(P100,000,000,00) for the structure, equipment, initial operation, and
maintenance of the Solar Energy Development Center shall be sourced from the
appropriations for the Department of Energy, Subsequent subsidy for the years
thereafter shall be included in the General Appropriations Act.


SECTION 8. Implementing Rules and Regulations. - The Secretary of the
Department of Energy shall, within thirty (30) days from the effectivity of this
act, issue such rules and regulations necessary for the proper implementation
of the provisions of this law.

SECTION 9. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule, or regulation,
contrary to or inconsistent with the provisions of this Act is hereby repealed,
modified, or amended accordingly.

SECTION 10. Separability Clause. - If any provision or part of this Act is held
unconstitutional or invalid, the remaining parts of provisions not affected shall
remain in full force and effect.

SECTION 11. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation

Approved,