FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'11 
liAR -3 P 2 :43 
SEN~729 
S.No. ___ ~ 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Nuclear energy has been proven by world experience to be reliable, sustainable, efficient, 
environment-friendly, and cost-effective. It can also be a tool to address the country's electric 
generating capacity shortfall, which is projected to happen in the year 2012. It can address the 
worsening problem of global warming due to carbon emissions; and bring about a cleaner 
environment by eliminating the spread of heavy metals, toxic substances, and radioactive 
elements which occur through the continued use of the conventional and the traditional fossil 
fuel power generating technologies. 
Other countries have begun to see the benefits of nuclear power. 
Despite some 
opponents who retained old fears, especially the issue of storing radioactive spent fuel pellets, 
the Minnesota Senate has recently voted to lift the state's ban on consideration of new nuclear 
plants. Nuclear advocates point to the pollution-free, around-the-clock operation of nuclear 
plants vs. the harmful emissions from coal-fueled facilities that nuclear has the power to replace. 
This bill seeks to ascertain the operability of the Bataan Nuclear Power Plant, and 
ascertain whether it can be made, if it is not already so, mechanically, structurally and 
electronically in conformity with its original specifications and at par with its three physical 
sister plants existing and operating in the world today, most especially the KORI II Nuclear 
Power Plant in the Republic of Korea. 
The validation of its operability shall enable the Department of Energy to proceed 
accordingly, either towards the rehabilitation, repair, and reconstruction of the BNPP or its 
permanent closure. 
I 


This bill was originally filed in the House of Representatives by the Hon. Mark 
Conjuangco in the 14'h Congress, and by the Hon. Kimi S. Cojuangco in the 15th Congress. This 
bill contains the distilled essence of what was discussed during the period of interpellation and 
debate during the 14'h Congress. 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 2729 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
'11 
M~R -3 P2 :43 
2 
MANDATING AN IMMEDIATE VALIDATION PROCESS WHICH SATISFIES 
3 
INTERNATIONALLY ACCEPTED NUCLEAR POWER INDUSTRY NORMS TO 
4 
DETERMINE THE BAT AAN NUCLEAR POWER PLANT'S OPERABILITY 
5 
CULMINATING IN EITHER THE IMMEDIATE REHABILITATION, CERTIFICATION, 
6 
AND COMMERCIAL OPERATION, OR THE IMMEDIATE PERMANENT CLOSURE AND 
7 
SALVAGE VALUE RECOVERY OF THE BAT AAN NUCLEAR POWER PLANT 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
8 
SECTION 1. Short Title. - This Act shall be known as the, "Bataan Nuclear Power Plant 
9 
Operability Act." 
1 0 
SECTION 2. Declaration of Policy - The 1987 Constitution, Article 2, Section 16, 
11 
provides that the State shall protect and advance the right of the people to a balanced and 
12 
healthful ecology in accord with the rhythm and harmony of nature. Section 8 further provides 
13 
that the Philippines, consistent with the national interest, adopts and pursues a policy of freedom 
14 
from nuclear weapons in its territory. 
15 
In pursuance of Section 16, and there being no bar against the use of nuclear energy for 
16 
power generation in accordance with Section 8, it is hereby declared the policy of the State to 
17 
develop nuclear energy as a distinct and substantial part of the country's energy mix. 
18 
Nuclear energy shall serve as proactive action against the possible imposition of an 
19 
international tax and sanctions against the use of carbon-based fuels, resulting from a public 
20 
backlash against the supposed global warming and climate change. 
21 
The state shall promote the use of nuclear energy as an alternative energy source, 
22 
necessary for the ushering in of a clean hydrogen or electric transportation economy. 
1 


I 
SECTION 3. Mandate and Authority to Validate. - The National Power Corporation 
2 
(NAPOCOR) is hereby mandated and authorized to undertake the immediate validation of the 
3 
Bataan Nuclear Power Plant (BNPP). This vested mandate and authority shall be under the 
4 
direct supervision and control of the Department of Energy (DOE). 
5 
For purposes of this Act, "validation" is defined as a two-stage process to ascertain 
6 
whether or not the Bataan Nuclear Power Plant (BNPP) can in fact be made, if it is not already 
7 
so, mechanically, structurally, and electronically in conformity with its original specifications, 
8 
andlor the functional equivalent of its three physical sister plants existing and operating in the 
9 
world today, most especially the KORI II Nuclear Power Plant in the Republic of Korea, 
10 
whose physical example will serve as the preferred baseline model guiding the validation of the 
11 
BNPP. 
12 
The first stage of validation is to ascertain if the Bataan Nuclear Power Plant can be 
13 
brought to the required specification for certification and operation within the allocated One 
14 
Billion US Dollars (US $1,000,000,000.00) maximum expenditure allowed by this Act, resulting 
15 
in a "GO" or "NO GO" finding. It involves a step-by-step review of the original plans and 
16 
specifications, build documentation, inspection, re-inspection, and comparison with standards 
17 
such as those of the operating KORI II Nuclear Power Plant. 
18 
The second stage may come into force upon a GO result of the first stage. It involves the 
19 
immediate rehabilitation, repair, reconstruction, and other activities, including any and all 
20 
necessary works, guided by the step-by-step review process mandated in the first stage, 
21 
culminating in a hot function test for a duration equal to one-and-a-half (1 112) times 
22 
internationally recognized standards and resulting in the receipt of the required operating 
23 
certificates from the regulatory authority. Only thereafter may the facility be loaded with nuclear 
24 
fuel and the plant activated. 
25 
The second stage may also come into force upon a NO GO result of the first stage. It 
26 
involves a declaration of permanent BNPP closure, the rendering of the plant permanently 
27 
inoperable as a nuclear plant, and the immediate cessation of public funding for the further 
28 
maintenance ofBNPP. 
2 


I 
SECTION 4. Rehabilitation, Commission, and Operation. - The NAPOCOR, after a GO 
2 
finding pursuant to Section 3 of this Act, is hereby mandated and authorized to undertake the 
3 
immediate rehabilitation, certification, commissioning, and commercial operation of the BNPP. 
4 
This vested mandate and authority shall be under the direct supervision and control of the DOE. 
5 
The NAPOCOR shall spin-off portions of its organization which are presently overseeing the 
6 
preservation and maintenance of BNPP, its engineering, technical, and administrative staff to 
7 
form a government-owned corporation to be known as the Philippine Nuclear Power Corporation 
8 
or PNPC, to further hasten and streamline the rehabilitation, commissioning process, and 
9 
operation of the BNPP. The Philippine Nuclear Research Institute (PNRI), which is mandated to 
10 
oversee the licensing and regulation of nuclear facilities, shall continue to regulate the 
II 
rehabilitation, commissioning, and operation of the BNPP. 
12 
For purposes of the BNPP rehabilitation plan, the physical example of the KORI II 
13 
Nuclear Power Plant, aside from and in further preference to its physical sister plants, Angra I 
14 
and KRSKO, will serve as the preferred baseline model. 
IS 
For purposes of the BNPP commercial operation, the physical example of the KORI II 
16 
Nuclear Power Plant will serve as the preferred baseline model as to BNPP's performance both 
17 
technically and financially. 
18 
SECTION 5. Permanent Closure of the BNPP. - The NAPOCOR, after a NO GO finding 
19 
pursuant to Section 3 of this Act, is hereby mandated and authorized to declare the permanent 
20 
closure of the BNPP. This vested mandate and authority shall be under the direct supervision and 
21 
control of the DOE. 
22 
Within one (1) year after the declaration of permanent closure, the BNPP shall be 
23 
subjected to such disposition as the NAPOCOR may find feasible. Disposition plan may include 
24 
converting the site into an eco-tourism, industrial park, or that the BNPP will form part of the 
25 
Nuclear Training Center of NAPOCOR for its future nuclear power plant operators and 
26 
employees. 
27 
At the very least, in the interregnum between declaration and the implementation of the 
28 
above provision, the immediate cessation of public funding for the further maintenance of BNPP 
29 
is mandated. 
3 


1 
SECTION 6. Warranty Over Mechanical and Civil Portions Including the Nuclear Steam 
2 
Supply System and Balance of Plant Equipment. - The PNPC shall, after a GO finding pursuant 
3 
to Section 3 of this Act and during the subsequent rehabilitation and certification, warrant that 
4 
the Mechanical and Civil Portions, including the Balance of Plant Equipment but most especially 
5 
the Nuclear Steam Supply System of the BNPP conforms with internationally recognized 
6 
nuclear power industry standards to which applies the BNPP's series of plants; provided, that 
7 
the subsequent applicable international operating guideline revisions covering the series or 
8 
model of nuclear plants to which the BNPP belongs are likewise complied with. 
9 
For purposes of the warranty over mechanical and civil portions, the physical example of 
10 
the KORI II Nuclear Power Plant, aside from and in further preference to its physical sister 
II 
plants, Angra I and KRSKO, will serve as the preferred baseline model or reference. 
12 
SECTION 7. Warranty Over Instrumentation and Control (I AND C) Equipment. - After 
13 
a GO finding pursuant to Section 3 of this Act and during the subsequent rehabilitation and 
14 
certification, the existing main instrument and control equipment of the BNPP may be retained in 
15 
whole or in pati as needed. The PNPC shall also ensure that the Instrumentation and Control (I 
16 
and C) portions, including electronic controls, sensors, and data communication systems, such as 
17 
non-mechanical servo drives and actuators are modernized according to the technology currently 
18 
employed by existing nuclear power plants operating in the world. Digital systems may likewise 
19 
be employed similar to the upgrades being implemented by other existing nuclear power plants 
20 
implementing improvements of their I and C systems. 
21 
Such upgrades in the I and C equipment shall, as may be applicable, include all revisions 
22 
and guidelines pertinent to the Three Mile Island incident and Chernobyl accident. 
23 
For purposes of the warranty over instrumentation and control equipment, the physical 
24 
example of the KORl II Nuclear Power Plant, aside from and in further preference to its 
25 
physical sister platlts; Angra I and KRSKO, will serve as the preferred baseline model or 
26 
reference. 
27 
Nothing in this section shall be interpreted as giving the NAPOCORlPNPC the blanket 
28 
authority to implement, apply or institute physical and/or design changes or other operating 
4 


1 
guidelines not otherwise proven in the running physical sister plants ofBNPP, namely, Angra I 
2 
or KRSKO or KORl II, with preference for KORl II as the baseline model or reference. 
3 
SECTION 8. Hiring of Technical Personnel. - Upon a GO finding of the BNPP, the 
4 
PNPC shall recruit, hire, and engage the services of the skilled manpower for the management 
5 
and operation of all the technical aspects of the plant. For this purpose, the technical personnel 
6 
involved in and possessing institutional memory on the construction and maintenance of the 
7 
BNPP shall be given priority and be deemed acceptable, subject to requalification, as deemed 
8 
applicable and necessary, but regardless of their age for those that will be involved in the 
9 
rehabilitation and re-commissioning process only. 
lONon-resident aliens who shall be employed as technical personnel by the BNPP must first 
11 
secure an employment permit from the Department of Labor and Employment: Provided, that 
12 
such permit shall be issued only upon determination of the non-availability of persons in the 
13 
Philippines who are competent, able and willing at the time of the application to perform the 
14 
services of the alien personnel. 
15 
The KORl II Nuclear Power Plant Manpower Plantilla shall be used as the preferred 
16 
baseline model in determining the manpower complement of the BNPP. 
17 
SECTION 9. Development of Local Skilled Manpower. - The PNPC shall implement a 
18 
program for training, cultivating, and developing a pool of local skilled manpower necessary for 
19 
the management and operation of all the teclmical aspects of the plant and for a future nuclear 
20 
power industry including a nuclear power manpower export industry. 
21 
Towards this end, the University of the Philippines is hereby mandated to augment its 
22 
college of conventional power engineering by creating a nuclear power engineering department 
23 
which shall be considered a higher level of academic attainment. The courses will only be 
24 
offered for enrollment to the top twenty percent (20%) of engineering graduates which include 
25 
power, mechanical, civil, electrical and other engineering fields which are applicable to the 
26 
nuclear power industry, or the equivalent academic prerequisites as may be determined by the 
27 
Dean of the College of Engineering of the University of the Philippines in consultation with the 
28 
PNPC. 
5 


I 
A separate course may be offered by the University of the Philippines which will 
2 
specialize in nuclear power industry regulation. Again, with the courses only offered for 
3 
enrollment to the top twenty percent (20%) of engineering graduates which include power, 
4 
mechanical, civil, electrical and other engineering fields which are applicable to the nuclear 
5 
power industry, or the equivalent academic prerequisites as may be determined by the Dean of 
6 
the College of Engineering of the University of the Philippines in consultation with the 
7 
Philippine Nuclear Research Institute. 
8 
Other state universities and colleges are hereby encouraged to offer courses in nuclear 
9 
engineering and nuclear plant operation including nuclear power plant regulation. 
10 
As a jump starter for the creation of continuing nuclear power expertise, a separate 
II 
budget for hands-on training, simulator training and further academic training abroad of 
12 
operating personnel and/or outstanding nuclear engineering graduates shall be allocated, 
13 
chargeable against 
any excess in the One Billion US Dollar ($1,000,000,000.00) BNPP 
14 
rehabilitation cost ceiling as mandated by this Act. This may also include the establishment of 
15 
simulator training facilities which shall be located at a distinct facility which includes adequate 
16 
land area (at least two hectares) on the grounds of the University of the Philippines, to eventually 
17 
emulate the functions of KHNP Nuclear Power Education Institute of the Republic of Korea. 
18 
SECTION 10. Compensation; Salary Rates. - The PNPC is hereby authorized to pay 
19 
internationally competitive rates for all personnel especially those working within battery limits 
20 
or controlled areas within the nuclear facility: Provided, That the manpower complement shall 
21 
not exceed the average number of personnel utilized per unit of the same type of plant in other 
22 
countries. 
23 
As used in this Act, battery limits shall refer to the controlled area as defined in nuclear 
24 
facilities. 
25 
SECTION II. Tenure of Employment. - For purposes of this Act, the provisions of the 
26 
Civil Service rules and regulations shall apply to personnel recruited under Section 10 of this 
27 
Act; Provided, that a single act of proven negligence, demonstrated incompetence or 
28 
irresponsibility shall be ground for termination: Provided, further, that plant personnel, as may be 
29 
required by the nuclear regulatory body, should pass the proficiency examination, as befits their 
6 


I 
job description. The proficiency examination shall be conducted every two years as a condition 
2 
for continued employment. 
3 
The proficiency testing for KORI II personnel shall be used as the preferred guideline in 
4 
establishing the proficiency testing standards for BNPP. 
5 
Should it be determined that these KORI II proficiency testing guidelines provide for a 
6 
more frequent testing interval than the two year interval as provided above, then the more severe 
7 
condition shall apply. 
8 
SECTION 12. Allocations/or Disposal a/Spent Fuel and Decommissioning a/the BNPP 
9 
including Penalty. - In the operation of the plant, the PNPC shall allocate a sinking fund to cover 
10 
the expenses for the future decommissioning of the plant at the end of its operational life. PNPC 
II 
shall also allocate for the costs of radioactive waste disposal and spent fuel disposal program of 
12 
BNPP. 
13 
Upon collection of the fees for its product namely the generated and sold electricity, the 
14 
BNPPIPNPC shall forthwith (on a daily basis) and without exceptions tum over the said funds to 
15 
the National Treasury. The said funds shall then be converted into thirty three and one third 
16 
percent (33 1/3%), thirty three and one third percent (33 1/3%) and thirty three and one third 
17 
percent (33 1/3%) mix of U.S. Dollar, Euro and gold strictly on the subsequent working day 
18 
from the receipt of the funds. The purpose of the conversion of the funds into these instruments 
19 
of value is to ensure that the value of the total fund is not eroded, and is preserved for its future 
20 
and exclusive use in financing the ULTIMATE disposal (ISOLATION) of spent fuel/high level 
21 
nuclear waste, plant decommissioning, as the case may be. 
22 
The purchase of these instruments of value should be for a price which is at the most, the 
23 
average price for the relevant trading day. For gold, the commodity exchange which shall be 
24 
used is the London Bullion Market. For the US dollar and the Euro, they are to be supplied by 
25 
the Bangko Sentral ng Pilipinas, at a price which is the average price for the total trade of the 
26 
relevant day, at the Philippine Dealing System. 
27 
The Bangko Sentral ng Pilipinas (BSP) together with the National Treasury shall be 
28 
responsible for the purchase of these instruments in compliance with the above provision. Once 
29 
these instruments are purchased they may not be traded. 
7 


1 
Disbursement and management of the fund shall be governed by the implementing 
2 
guidelines to be agreed upon and promulgated by DOE, NAPOCOR, PNPC, PNRl and the 
3 
Department of Finance. The primordial responsibility of these institutions will be to assure the 
4 
non-erosion ofthe value of these funds, in real terms. 
5 
Any officer and! or personnel of the Bangko Sentral ng Pilipinas or of the National 
6 
Treasury who violates the provision of this Section or of the rwes and regulations issued 
7 
pursuant thereto shall, upon conviction by a competent court, be sentenced to imprisonment for a 
8 
period of not less than three years but not more than ten years or a fine of not more than One 
9 
Hundred Thousand Pesos (PI00,000.00) or both, upon the discretion of the court, without 
10 
prejudice to such other liabilities under any other existing laws. 
11 
The account for the final disposition of spent fuel shall be called the "BNPP Spent Fuel 
12 
Disposal Fund." 
13 
The account for decommissioning the plant and making the then former plant site safe at 
14 
the end of BNPP's operating or physical lifetime shall be called the, "BNPP End of Life 
15 
Decommissioning Fund." 
16 
SECTION 13. Waste Management and Disposal. - Management and disposal of low-
17 
level and intermediate level waste similar to those generated in the medical and industrial sector 
18 
shall be handled in accordance with the regulatory requirements of the PNRI. In no case shall the 
19 
BNPP Spent Fuel Disposal Fund be used to dispose of low and intermediate level nuclear waste. 
20 
As in the practice of the medical and industrial sectors, low and intermediate level waste disposal 
21 
shall be funded as part of the BNPP's normal operating expenses. 
22 
SECTION 14. Recovered Fissionable Materials. - Recovered fissionable materials from 
23 
spent fuel may be reused by the BNPP: Provided, that the technology is first proven to be 
24 
economically viable by a working and commercial example. In such a case, the BNPP Spent 
25 
Fuel Disposal Fund shall not be utilized. Instead, the funding for such shall be treated as a 
26 
separate commercial investment, justified by an appropriate economic model and feasibility 
27 
study which indicates clear economic advantage to society, the government and the PNPC. Ten 
28 
percent (10%) of the funds emanating from Section 12 may be used as capital for this purpose: 
29 
Provided, That the original capital for BNPP's rehabilitation has already been fully paid back, 
8 


1 
and: Provided finally, that BNPP has fully paid back all of its loan obligations relating to its 
2 
rehabilitation and that this investment or activity is profitable to the entity created under Section 
3 
4. 
4 
SECTION 15. Definition & Extension of Operational Lifetime. - The operational lifetime 
5 
of the BNPP shall be defined as forty (40) years from the date of its commercial operation. 
6 
Extension of the operational lifetime of the BNPP may be granted by the PNRI: 
7 
Provided, That the duration of the extended operational lifetime shall not exceed twenty (20) 
8 
years per extension. 
9 
SECTION 16. Emergency Preparedness and Response Plan. -
The PNPC shall, 
10 
preferably within two (2) years but in no case later that one year before the BNPP is put into 
11 
operation, present a draft emergency preparedness and response plan in accordance with the 
12 
regulatory requirements of PNRI. It shall use the original "BNPP emergency and preparedness 
13 
response plan" as an initial working document culminating in a plan which is comparable in 
14 
scope to that which is in place either at KORI II, or KRSKO or, Angra I nuclear power plants. 
15 
SECTION 17. Cost of Rehabilitation. - The PNPC shall endeavor to complete the 
16 
rehabilitation of the BNPP at a cost that is substantially below the cost of a greenfield and brand 
17 
new coal-fired power plant equipped with sulfur scrubbing equipment, of equivalent power 
18 
generating capacity. In no case shall the rehabilitation cost exceed One Billion US Dollars 
19 
(US$I,OOO,OOO,OOO.OO). 
20 
SECTION 18. Housing and Training Facilities. - All original facilities related to the 
21 
BNPP which are located in Morang and Bagac, Bataan such as the Nuclear Power Village and 
22 
Training Center and the one hundred sixty eight housing facilities, including those which were 
23 
constituted as necessary, indispensable and an integral part of the BNPP's infrastructure, and 
24 
covered by the $2.118 Billion which the Department of Finance has already paid for as full 
25 
settlement of the BNPP debts shall be deemed as inalienable to BNPP and not subject to sale. 
26 
SECTION 19. Commercial Mode of Commissioning. -- The President, upon the 
27 
recommendation of the Secretary of Energy, is hereby given the authority to determine and 
28 
decide tlle commercial mode of commissioning the BNPP in accordance with the provisions of 
29 
this Act. Such mode may be by administration, or by contract. 
9 


I 
SECTION 20. 
Commercial Mode of Operation. -
The President, upon the 
2 
recommendation of the Secretary of Energy, is hereby given the authority to determine and 
3 
decide the final mode of commercial plant operation. The President will endeavor to assure that 
4 
the Filipino people will be the ultimate beneficiaries of the economic cost advantages offered by 
5 
nuclear power generation. 
6 
In the event that the President determines that it is more publicly acceptable or more in 
7 
the public interest to involve private sector participation in the operation of the plant, the 
8 
maximum limit for such participation shall be twenty percent (20%) of the total beneficial 
9 
ownership. Such private ownership must be acquired through a transparent public bidding 
10 
process. 
II 
SECTION 21. Compliance with Environmental Regulations. - As far as the environment 
12 
is concerned, all aspects nuclear shall be subject to the PNRI rulings and standards. With respect 
13 
to all other non-radiological emissions or hazards, the DENR shall exercise its authority as 
14 
mandated by law. 
IS 
SECTION 22. Benefits to Host Communities. - The amount of PhP 0.011 Kwh shall be 
16 
given as a direct benefit to the province, city, or municipality especially the community and 
17 
people in the direct proximity of the plant, and equitable preferential benefit to the region that 
18 
hosts the nuclear power plant: Provided, That the benefits to host communities under Rep. Act 
19 
No. 9136, also known as the EPIRA Law, are not duplicated nor diminished. 
20 
The Municipalities of Morong and Bagac, Bataan wherein the plant is physically located 
21 
will be supplied with electric power produced by BNPP for the duration of BNPP's operating 
22 
lifetime for up to two times their 2009 annual electric consumption, free of charge. Provided, that 
23 
such amount of power will be supplied as per the actual demand of the moment. Meaning power 
24 
in excess of the current need up to two times the 2009 base year consumption level, is non-
25 
tradable. 
26 
SECTION 23. Implementing Rules and Regulations. - The Secretary of Energy shall, in 
27 
coordination with the President of the NAPOCOR, PNPC, and the Director of the Philippine 
28 
Nuclear Research Institute, within ninety (90) days from the effectivity of this Act, promulgate 
29 
any additional rules and regulations for the effective implementation of this Act. 
10 


I 
SECTION 24. Congressional Oversight Committee. -
There is hereby created a 
2 
Congressional Oversight Committee which shall be composed of Chainnen of the Committees 
3 
on Energy of the Senate and the House of Representatives and four (4) additional members from 
4 
each House to be designated by the Senate President and the Speaker of the House of 
5 
Representatives, respectively. 
6 
The Congressional Oversight Committee shall monitor and make public its findings and 
7 
any information which it may gather regarding the implementation of this Act. 
8 
The secretariat of the oversight committee shall be drawn from the existing secretariat 
9 
personnel of the committees of the Senate and the House of Representatives and the funding for 
10 
its operations shall be takenl1'om the existing budget of the (concerned) committees. 
II 
SECTION 25. Appropriations. -
The amount of One Hundred Million Pesos 
12 
(PhpIOO,OOO,OOO.OO) is hereby appropriated chargeable against the appropriations of the 
13 
Department of Energy under the current General Appropriations Act andlor supplemented or 
14 
augmented by the National Power Corporation andlor the Philippine National Oil Corporation 
IS 
andlor the Office of the President for the conduct and completion of validation to determine the 
16 
viability of rehabilitating, commissioning and commercially operating the Bataan Nuclear Power 
17 
Plant as a nuclear facility taking into consideration technical, safety, economic, financial and 
18 
ecological concerns. 
19 
SECTION 26. Oplions for Sources of Funding. -- For the citizen to benefit fully from the 
20 
cost advantages of nuclear power generation, in particular the BNPP, because it has already 
21 
been paid for as of April 2007, the citizen must maintain his ownership ofBNPP. 
22 
The State may therefore raise the necessary equity to preserve this ownership preferably 
23 
at one hundred percent (100%) or optionally down to the minimmn of eighty percent (80%) as 
24 
provided for in Sec. 19 of this Act, through the collection of a surcharge ofPhp 0.151 kwh of the 
25 
total electric power sold in the country which passes through the power transmission and 
26 
distribution grid except; from generating capacities which have qualified for incentives under 
27 
Republic Act No. 9513 or the Renewable Energy Act of2008: Provided, that such collection of a 
28 
surcharge shall not be imposed for more than five (5) years from the date of its initial imposition, 
29 
nor should it exceed One Billion US Dollars (US$I,OOO,OOO,OOO.OO). The funds collected shall 
11 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
be reimbursed to the electric consumers commencmg immediately upon the commercial 
operations of the BNPP. The time frame for such reimbursement which shall be on a monthly 
basis shall not exceed four (4) years. 
The state is also authorized to enter into international or domestic loan agreements to 
fund the implementation of this Act: Provided, that the total funds raised from the loan andlor 
the surcharge combined shall not exceed One Billion US Dollars (US$l,OOO,OOO,OOO.OO) net of 
interest and other charges. 
SECTION 27. Utilization of Profits Generated from Plant's Operation. - Power sold 
from BNPP into the grid shall be priced at the 30 day average wholesale price of all wholesale 
power sold in the country prior to the billing date. 
The purpose for this is so that employees of PNPC will not need to engage in trading 
operations and/or speculation. Hence, they are not subject to the influence of external forces and 
thus not subject to corruption in the pricing of power. With the selling price determined by 
historical data the PNPC will be able to concentrate on running the plant to its full efficiency. 
Profits then generated from the operation of the plant may be utilized in either of two ways or a 
combination of both, as follows: 
(a) 
For political reasons, the President of the Philippines may order PNPC to provide 
dividends in the form of a monthly check, the proceeds of which are payable to the electric 
consumers on the month after each electric bill or; 
(b) 
To fund the construction of future nuclear power plants which the entity under 
21 
Section 4 may undertake. Provided, that if option one is not chosen by the President, surplus 
22 
funds 01' profits shall be deposited with the National Treasury in a fund to be named Philippine 
23 
Nuclear Industry Development Fund. 
24 
The application of the above uses or a combination of the above uses at whatever 
25 
proportion, of profits or operating margins, shall be at the discretion of the President of the 
26 
Philippines, but shall be decided upon by the President on a monthly basis. 
27 
SECTION 28. Pumped Storage. - Supplying power to pumped storage facilities is a 
28 
losing proposition to the PNPC because pumped storage facilities buy power at the lowest price 
29 
available during the day. 
12 


1 
The Board of Directors of PNPC have the discretion to provide or not to provide such 
2 
power. Provided; that, for political reasons, the President may overrule the Board of Directors of 
3 
PNPC and force the supply of such power which is in effect an indirect way of exercising item 1 
4 
of Section 26. 
5 
Should PNPC supply power to pumped storage facilities and incur opportunity losses 
6 
from selling lower prices than those prices provided for under Section 26 then, the public must 
7 
be informed. 
8 
Thus, the PNPC is obligated to post quarter page ads in at least the three leading 
9 
newspapers of general circulation the opportunity losses incurred at the first of every month. 
10 
Such posting should read "BNPP HAS INCURRED OPPORTUNITY LOSSES ON DATE 
11 
, IN THE AMOUNT OF 
PESOS AS A CONSEQUENCE OF 
12 
BNPP'S SUPPLY TO 
PUMP STORAGE FACILITY. 
13 
THESE LOSSES ARE IN EFFECT A SUBSIDY TO 
WHOLE SALE ELECTRIC 
14 
PRICES AND HELP TO LOWER THE PRICE OF ELECTRICITY TO THE GENERAL 
15 
PUBLIC." 
16 
In effect, Section 27 is an indirect way and alternative method of achieving item 1 of 
17 
Section 26. 
18 
SECTION 29. Separability Clause. - If any provision or part hereof, is held invalid or 
19 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
20 
valid and subsisting. 
21 
SECTION 30. Repealing Clause. - Any law, presidential decree or issuance, executive 
22 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
23 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
24 
SECTION 31. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
25 
publication in at least two (2) newspapers of general circulation. 
Approved, 
13