SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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FIRST REGULAR SESSION 
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SENATE
Senate
of tijf 
rrftarj»
'16 
NOV 24 
A 9 « 4w
RECEIVED S'f.
Senate Bill No.
Introduced by Sen. Win G atchalian
AN ACT
INSTITUTIONALIZING THE ELECTRIC COOPERATIVES DISASTER
MANAGEMENT FUND AND PROVIDING FUNDS THEREFOR
Explanatory Note
There are 121 electric cooperatives meeting the power demand 
needs of 85.79% of barangays in the entire country. 
Some features of 
these cooperatives are their smaller capital and limited access to 
financing compared to private distribution utilities- attributes which 
become constraints in the wake of natural disasters.
Unfortunately, due to the Philippines’ location along the Pacific 
Ring of Fire, it is vulnerable to environmental disasters such as 
typhoons, monsoons, and earthquakes. In fact, the Philippines ranks as 
one of the most disaster-prone countries in the world with a total of 274 
calamities from 1995 to 2015 and is among the top ten countries with 
the most num ber of people affected by disasters at 130 billion1.
Ju st in the last quarter of 2013, an earthquake with a magnitude 
of 7.2 hit Sagbayan, Bohol leaving 222 dead, 976 injured, and 8 missing. 
Barely a m onth later, Haiyan, the deadliest typhoon in history, entered 
the Philippines leaving 6,000 recorded deaths, 4 million people displaced,
1 Human Cost of Weather Related Disasters. United Nations Office for Disaster Risk 
Reduction (UNISDR) and the Centre on the Epidemiology of Disasters (CRED).


and 14 million people affected.2 Thirty four electric cooperatives incurred 
Four Billion Ninety Two Million Pesos (Php 4.92B) in damage.3
To undertake restoration and rehabilitation in their respective 
areas, disaster-affected electric cooperatives can apply for a calamity loan 
from the National Electrification Administration (NEA) which may be 
converted to a calamity grant.4 
Loans can be approved within five (5) 
days but to convert these loans to grants may take up to two (2) years. 
In addition, the calamity loans have a ten-year repayment period with an 
interest of 3.25% per annum .5 Worse, these loans are passed on to 
consum ers, the same people who have lost their homes and belongings, 
resulting to higher power rates.
It is with these issues in mind that this m easure is filed. This bill 
seeks to first, promptly provide interest-free financial assistance to 
electric cooperatives for restoration or rehabilitation of power facilities 
damaged due to fortuitous events or force majeure; and second, 
adequately prepare electric cooperatives for natural disasters by 
requiring disaster mitigation and preparedness m easures which include 
but are not limited to the undertaking of a disaster vulnerability risk 
assessm ent and the creation of an emergency response plan.
Due to the significant role of electric cooperatives and the 
susceptibility of the country to natural disasters, the'm im adiate passage 
of this bill is sought.
GATCHAL
2 World Disasters Report 2015. International Federation of Red Cross and Red Crescent 
Societies.
3 http://interaksvon.com/business/75622/tvphoon-damage-to-visavas-electric-coops- 
hits-nearlv-p5-billion visited 21 November 2016. “Typhoon damage to Visayas electric 
coops hits nearly P5 billion” by Euan Paulo C. Anonuevo published 26 November 2013. 
Interaksyon.
4 Memorandum No. 2016-006 “Policy on Conversion of Calamity Loan into Calamity 
Grant/Subsidy”. National Electrification Administration. 2 June 2016.
5 https:/ /wvyw.doe.gov.ph/energist/index.php/2-uncategorised/ 10894-nea-loan-terms- 
to-coops-ease visited 21 November 2016. “NEA Loan Terms To Coops Ease” published 
26 September 2016. Department of Energy.


Senate
o( t l) f  t o f c r f t a r ^
SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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FIRST REGULAR SESSION 
)
SENATE
Senate Bill No. 1253
*16 
NOV 24 
A 9 « 4
RECEIVED BY:
Introduced by Sen. Win G atchalian 1 2
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AN ACT
INSTITUTIONALIZING THE ELECTRIC COOPERATIVES DISASTER 
MANAGEMENT FUND AND PROVIDING FUNDS THEREFOR
CHAPTER I
TITLE, POLICY AND DEFINITIONS
SECTION 1. Title. -  This Act shall be known as the “Electric Cooperatives 
Disaster Management Fund”.
SECTION 2. D eclaration of Policy. -  It is hereby declared the policy of the 
State to:
a) Support and assist, to the fullest extent, electric cooperatives 
adversely affected by a fortuitous event or by force majeure in order to 
immediately restore electric service, recognizing that the absence of 
electric service after such is a national security issue, thereby:
1. Facilitating the rescue and relief operations, availability of 
basic services such as food, water, medicine, and hospitals, 
and mitigation of civil unrest;
2. Aiding the normal functioning of local government units 
(LGUs) and communities, and easing the recovery of the 
adversely affected individuals and families;


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3. Assisting efforts of the affected LGUs in expediting the 
rendering of aid, assistance, and emergency services, and 
the reconstruction and rehabilitation of devastated areas.
b) Provide an orderly and continuing m eans of financial assistance to 
electric cooperatives in carrying out their responsibilities of providing 
reliable electric service necessary to alleviate the sufferings and 
damages brought about by a fortuitous event or force majeure by:
1. Allocating funds in the form of grants for disaster mitigation, 
disaster preparedness, and restoration or rehabilitation of 
electric cooperatives’ damaged facilities that are readily 
accessible;
2. Providing a stream lined process for the availment of the 
fund;
3. Requiring the electric cooperatives to develop and implement 
comprehensive vulnerability risk assessm ents which identify 
disaster preparedness and disaster mitigation m easures to 
protect and strengthen critical infrastructure assets, and 
emergency response plans to address immediate restoration 
or rehabilitation efforts.
SECTION 3. Scope. -  This Act shall be applicable to all electric cooperatives 
throughout the country.
SECTION 4. D efinition of Term s.
defined as:
As used in this Act, the following shall be
a) 
Climate Change -  refers to a change in climate that can be
identified by changes in the m ean or variability of its properties 
and that persists for an extended period typically decades or 
longer, whether due to natural variability or as a result of 
hum an activity;
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b)
C)
Disaster -  refers to a serious disruption of the functioning of a 
community or a society involving widespread hum an, material, 
economic or environmental losses and impacts, which exceeds the 
ability of the affected community or society to cope using its own 
resources. Disasters are often described as a result of the 
combination of: the exposure to a hazard; the conditions of 
vulnerability that are 
present; 
and 
insufficient capacity or 
m easures 
to 
reduce 
or 
cope 
with 
the 
potential 
negative 
consequences. Disaster impacts may include loss of life, injury, 
disease and other negative effects on hum an, physical, mental and 
social well-being, together with damage to property, destruction of 
assets, loss of services, social and economic disruption and 
environmental degradation;
Disaster Mitigation -  refers to the lessening or limitation of the 
adverse impacts of hazards and related disasters. Mitigation 
m easures encom pass engineering techniques and hazard-resistant 
construction as well as improved environmental policies and public 
awareness;
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d) 
Disaster Preparedness -  refers to the knowledge and capacities 
developed by governments, professional response and recovery 
organizations, 
communities 
and 
individuals 
to 
effectively 
anticipate, respond to, and recover from, the impacts of likely, 
imminent or current hazard events or conditions. Preparedness 
action is carried out within the context of disaster risk reduction 
and management and aims to build the capacities needed to 
efficiently manage all types of emergencies and achieve orderly 
transitions from response to sustained recovery. Preparedness is 
based on a sound analysis of disaster risk and good linkages with 
early warning systems, and includes such activities as contingency 
planning, stockpiling of equipment and supplies, the development 
of 
arrangem ents 
for 
coordination, 
evacuation 
and 
public 
information, and associated training and field exercises. These 
m ust be supported by formal institutional, legal and budgetary 
capacities;
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e) 
Disaster Prevention -  refers to the outright avoidance of adverse 
impacts of hazards and related disasters. It expresses the concept 
and intention to completely avoid potential adverse impacts 
through action taken in advance such as construction of dams or 
em bankm ents that eliminate flood risks, land-use regulations that 
do not permit any settlement in high-risk zones, and seismic 
engineering designs that ensure the survival and function of a 
critical building in any likely earthquake;
f) 
Electric Cooperatives -  refer to a distribution utility created and 
operating pursuant to Presidential Decree No. 269, as amended;
g) 
Emergency Response Plan -  refers to the development and 
preparation of a written and formal plan containing organizational 
structure and steps which will enable the electric cooperative to 
restore its system in a safe and timely m anner after a fortuitous 
event or force majeure;
h) 
Energy Regulatory Commission -  refers to the regulatory agency 
created under Republic Act No. 9136;
i) 
Force Majeure -  refers to an event that is a result of elements of 
nature that cannot be reasonably anticipated or controlled, such 
as, but not limited to typhoon, storm, tropical depression, flood, 
drought, volcanic eruption, earthquake, tidal wave, or landslide;
j) 
Fortuitous Event -  refers to an act of war (declared or undeclared), 
sabotage, blockade, revolution, riot, insurrection, civil commotion 
or any violent or threatening action;
k) 
Joint Congressional Power Commission -  refers to the Commission 
created under Republic Act No. 9136;
l) 
National Electrification Administration -  refers to the government 
agency created under Presidential Decree 269, as amended;
m) 
National Disaster Risk Reduction and Management Fund -  refers 
to the calamity fund appropriated under the Annual General


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Appropriations Act which is used for disaster risk reduction or 
mitigation, prevention and preparedness activities as provided 
under Republic Act No. 10121;
n) 
Restoration or Rehabilitation -  refers to the actions or activities 
undertaken by the electric cooperatives to rebuild, replace, or 
repair the necessary facilities to provide reliable electric service to 
m em ber-consum ers after a fortuitous event or force majeure, 
taking into consideration designs, materials, or equipment that will 
make the infrastructure more resilient; and
o) 
Vulnerability and Risk Assessment -  shall refer to the electric 
cooperative’s identification of critical assets and the development of 
disaster preparedness, and disaster prevention and mitigation 
m easures to protect, restore or, strengthen critical assets prior to 
the onset of a fortuitous event or force majeure;
CHAPTER II
CREATION AND IMPLEMENTATION OF THE ELECTRIC COOPERATIVES
DISASTER MANAGEMENT FUND
SECTION 5. C reation of th e E lectric C ooperatives D isaster M anagem ent 
Fund. 
-  There is hereby created an Electric Cooperatives Disaster 
Management Fund, which shall be managed and adm inistered by the National 
Electrification Administration (NEA).
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SECTION 6. Powers and F unctions of th e NEA.
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following additional powers and functions:
The NEA shall have the
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a) 
Formulate policies and coordinate the implementation of all activities
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of the electric cooperatives relative to disaster management;
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b) 
Mandate 
electric 
cooperatives 
to 
submit 
comprehensive 
and
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integrated disaster management programs such as but not limited to
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vulnerability risk assessments and emergency response plans, and
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thereafter establish, administer, and monitor the implementation of
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the same;


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C)
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f)
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Review and approve all activities of the electric cooperatives relative to 
disaster mitigation, disaster preparedness, and disaster prevention 
plans as a result of the vulnerability risk assessm ent;
Develop 
reasonable 
guidelines 
and 
rational 
documentary 
requirem ents for electric cooperatives to avail of the Electric 
Cooperatives Disaster Management Fund;
Formulate an efficient procedure for program participation and 
criteria for fund allocation;
Determine the annual budget of the Electric Cooperatives Disaster 
Management Fund and subm it the same for approval by Congress;
Receive all donations, in the form of funds, materials, or equipment, 
which are intended for the purpose of addressing the restoration of 
electric cooperatives’ infrastructure damaged by a fortuitous event or 
force majeure; and
Promulgate such rules and regulations as may be necessary to 
implement the objectives and provisions of this Act.
CHAPTER III
RESPONSIBILITIES OF THE ELECTRIC COOPERATIVES
SECTION 7. R esponsibilities of th e E lectric C ooperatives. -  In addition to 
their primary m andate to implement the rural electrification program of the 
country under existing laws, the electric cooperatives shall be vested with all 
the powers necessary to ensure the protection, preparedness, and mitigation of 
the adverse impact of any fortuitous event or force majeure to its 
infrastm cture. Electric cooperatives shall also ascertain the ability of their 
manpower to undertake emergency response for the immediate restoration or 
rehabilitation of their damaged infrastructure after a fortuitous event or force 
majeure.


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To accomplish such responsibilities, the electric cooperatives shall 
formulate comprehensive and integrated programs such as but not limited to 
the following:
a) 
Undertake a disaster vulnerability risk assessm ent of all their 
infrastructure in accordance with the NEA-approved template;
b) 
Prepare in the order of priority, projects and programs, including the 
financial requirements necessary to protect and mitigate the disaster 
vulnerability of all its infrastructure for review and approval by the NEA;
c) 
Institutionalize an emergency response plan to be activated immediately 
before and after the occurrence of a fortuitous event or force majeure;
d) 
Comply with NEA’s policies and procedural requirem ents for program 
participation and fund allocation;
e) 
Submit reports as may be required by the NEA; and
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Undertake all other activities necessary to implement the objectives and 
provisions of this Act.
CHAPTER IV
FUND SOURCES AND ALLOCATION
SECTION 8. Fund Sources. -  The Electric Cooperatives Disaster Management 
Fund shall be funded through the National Disaster Risk Reduction and 
Management Fund and the General Appropriations Act.
SECTION 9. D onations. -  All donations in the form of funds, materials, or 
equipment, whether local or international, intended for the express purpose of 
restoring or rehabilitating the electric cooperatives infrastructure damaged by a 
fortuitous event or force majeure, shall be received directly by the NEA, subject 
to existing auditing rules and regulations. International donations shall be 
exempt from all duties, fees, taxes and other charges.
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1SECTION 10. A ppropriations. -  The sum  of Seven Hundred Fifty Million
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Pesos (Php750,000,000.00) for the initial implementation of this Act shall be
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taken from the National Disaster Risk Reduction and Management Fund.
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Thereafter, such am ounts necessary for the sustainable implementation of this
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Act shall be included in the annual General Appropriations Act.
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SECTION 11. A llocation of th e E lectric C ooperatives D isaster M anagem ent 
Fund. -  
The 
Electric Cooperatives Disaster Management Fund shall be 
allocated in the following manner:
a) Fifty percent (50%) for the electric cooperatives’ disaster prevention, 
disaster preparedness, and disaster mitigation m easures duly approved 
by the NEA;
b) Forty percent (40%) for the restoration or rehabilitation of the electric 
cooperatives’ damaged infrastructures after a fortuitous event or force 
majeure; and
c) Ten percent (10%) for the repayment of outstanding obligations of the 
electric cooperatives incurred for the purpose of financing the restoration 
or rehabilitation of its infrastructure damaged by a fortuitous event or 
force majeure.
In case of a deficiency of the fund allocated for the restoration or 
rehabilitation of the electric cooperatives’ damaged infrastructure after a 
fortuitous event or force majeure, the am ount intended for the electric 
cooperatives’ disaster prevention, preparedness, and mitigation m easures 
which has not been released by the NEA to the electric cooperatives shall be 
immediately re-allocated to cover such shortfall. In case the am ount of the 
initial annual budget is not sufficient to cover the restoration or rehabilitation 
costs for the year, the annual budget for the succeeding year shall be increased
1 N o te : R e m o v e d  M a la m p a y a  
O rig in a l p ro v is io n :
SECTION 10. A p p ro p ria tio n s . -  T h e  su m  o f S even H u n d re d  F ifty  M illio n  Pesos (P h p 7 5 0 ,0 0 0 ,0 0 0 .0 0 ) fo r  th e  in itia l 
im p le m e n ta tio n  o f th is  A c t s h a ll b e  ta k e n  fro m  th e  N a tio n a l D is a s te r Risk R e d u c tio n  a n d  M a n a g e m e n t F und a n d  
th e  M a la m p a y a  F u n d . T h e re a fte r, su ch  a m o u n ts  n e ce ssa ry fo r  th e  s u s ta in a b le  im p le m e n ta tio n  o f th is  A c t sh a ll b e  
in c lu d e d  in  th e  a n n u a l G e n e ra l A p p ro p ria tio n s  A c t.
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to an amount equivalent to the total expenditures of the previous year’s
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Electric Cooperative Disaster Fund, and such amount shall be maintained
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unless there is a need to increase pursuant to this Section.
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If the Electric Cooperatives Disaster Management Fund for the year is 
inadequate to cover the restoration or rehabilitation costs for electric 
cooperatives infrastructure damaged by a fortuitous event or force majeure, the 
NEA shall seek for the allocation of supplem entary budget corresponding to the 
outstanding balance from the National Disaster Risk Reduction Management 
Fund, subject to the approval of the President.
CHAPTER V 
GENERAL PROVISIONS
SECTION 12. R eportorial R equirem ents. -  The NEA shall take the necessary 
m easures to ensure that the provisions of this Act are properly implemented 
and subm it annual reports on the program implementation and fund 
utilization to the DOE, the JCPC, and the Office of the President.
SECTION 13. C ongressional O versight. -  Upon the effectivity of this Act, the 
JCPC shall exercise oversight functions over the implementation of this Act.
SECTION 14. Evaluation. -  Within five (5) years after the effectivity of this Act, 
the JCPC shall conduct a systematic evaluation of the accomplishments and 
impact of this Act for purposes of determining remedial legislation.
SECTION 15. Im plem enting Rules and R egulations. -  The NEA shall, in 
consultation with relevant government agencies, electric cooperatives, and end- 
users, promulgate the Implementing Rules and Regulations vathin six (6) 
m onths from the effectivity of this Act, subject to the approval of the JCPC.
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SECTION 16. Separability Clause. -  If for any reason, any provision of this
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Act is declared unconstitutional or invalid, the other parts or provisions hereof
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which are not affected thereby shall continue to be in full force and in effect.
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SECTION 17. Repealing Clause. -  Any law, presidential decree or issuance,
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executive order, letter of instruction, administrative rule or regulation contrary
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to or inconsistent with the provisions of this Act are hereby repealed, modified
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or amended accordingly.
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SECTION 19. Effectivity. 
-  This Act shall take effect on the fifteenth day
following its publication in 
circulation.
at least two (2) national papers of general
Approved.
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