Eighteenth Congress
First Regular Session

HOUSE BILL No. _7035 Nemes

Introduced by
REPRESENTATIVE LOREN B. LEGARDA

TO AMEND THE SECTION 294 Orinerustie ACT NO. 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE, AS AMENDED, TO ALLOW THE
LOCAL GOVERNMENT SHARE IN THE NATIONAL WEALTH TO BE APPLIED
FOR RESILIENT RURAL DEVELOPMENT
EXPLANATORY NOTE

The times call for the spending of resources government can rely on in a less
restrictive manner. Threats from climate change, public health crises and natural
disasters will continue to be faced by the rural poor. A more open and flexible
application of local governments’ share in national wealth coming from energy sources
will help in meeting these threats and allowing resilient rural agricultural development.

The current Section 294 of the Local Government Code reads: "The proceeds
from the share of local government units pursuant to this chapter shall be appropriated
by their respective sanggunian to finance local government and livelihood projects:
Provided, however, that at least eighty percent (80%) of the proceeds derived from
the development and utilization of hydrothermal, geothermal and other sources of
energy shall be applied solely to lower the cost of electricity in the local government
unit where such a source of energy is located.”

For an extractive industry such as coal mining, there is only so much that can

be done to lower the cost of electricity short of subsidizing their cost. If broadened,


the funds can still be used for renewable energy options that will spur resiliency even
after the depletion of the resources.

This representation seeks to ensure an economic stimulus package for local
governments hosting depletable resources that includes greening our supply chain
and improving the agricultural sector for food and water security, disaster risk
resiliency programs and developments, and improving our health systems to ensure
testing and contact tracing, and strengthening the capacity of the local government to
address the peaks that may be expected after the lifting of enhanced community
quarantine (ECQ) and in case of future pandemics.

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

LOREN B. LEGARDA


10

12

Eighteenth Congress
First Regular Session

HOUSE BILL No. 7035

Introduced by
REPRESENTATIVE LOREN B. LEGARDA

‘AN ACT
TO AMEND THE SECTION 294 OF REPUBLIC ACT NO. 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE, AS AMENDED, TO ALLOW THE
LOCAL GOVERNMENT SHARE IN THE NATIONAL WEALTH TO BE APPLIED
FOR RESILIENT RURAL DEVELOPMENT
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled

SECTION 1. Title. — This Act shall be known as the “Share in National Wealth
from Coal Reform Act of 2020"

SEC. 2. Policy Declaration. It is the declared policy of the State to support
rural agricultural development to address threats from climate change, public health
crises and natural disasters through the broadening of local governments’ ability to
apportion their share in national wealth from extractive industries for their resilience
and recovery from such threats.

SEC. 3. Share in National Wealth. The share in national wealth of all energy
utilization from extractive industries shall not be subject to the restrictions under
Section 294 of Republic Act 7160, otherwise known as the Local Government Code.

Said share shall instead be used for any and all rural development projects that

address the threats from climate change, natural disasters and public health crises


10

1

12

13

14

15

16

7

18

19

20

including projects that ensure food and water security, health promotion and
sufficiency of health facilities, construction of multi-purpose evacuation centers that,
in between evacuation uses, serve as activity centers for the conduct of training on
green technology to address the threats enumerated herein.

SEC 4. Repealing Clause. - All republic acts, executive orders, rules and
regulations, and other issuances, or parts thereof, that are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC 5. Non-impairment Clause. - Nothing in this Act shall be construed as to
diminish, impair, or repeal rights recognized, granted, or available to marginalized or
basic sectors under existing laws including but not limited to the Local Government
Code and Republic Act No. 8371, otherwise known as the Indigenous Peoples
Rights Act. It shall apply to the share in the national wealth of local governments
with energy resources from extraction upon effectivity.

SEC 6. Separability Clause. - If for any reason or reasons, any part or
provision of this Act shall be declared or held to be unconstitutional or invalid other
parts or provisions hereof, which are not affected thereby shall continue to be in full
force and effect.

SEC 7. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) national newspapers of
general circulation

Approved,