'll-IIRTBENTH CONGRESS OF THE REPIJBLIC ) 
OF THE PHILIPPINES 
) 
7 
Jl iii! -4 r' 5 'i 
'Third Regular Session 
) 
Introduccd by Senator Miriam tlcfensor Santiago 
EXPLANATORY NOTE 
'The State must proinotc ncw rcnewable cnergy tcchnologics that rcducc contributions to 
global warming gases and improve our country's domestic energy production in a nimier that is 
consistcnt with cnvironnicntal protection, sustainablc development, and economic prosperity. 
The use of inarine and hydrokinetic renewable energy technologies can avoid 
contributions to global warming gases. 
Further, such tcchnologics can be produced 
domestically. 
'I'his Act sceks to promote the development and use o f  marinc and hydrokinetic 
renewable energy technologies. 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
7 
JL\N -4 ? ‘J ’I ” 
Third I<cgular Scssion 
1 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROMOTING THE DEVELOPMENT AND USE OF MARINE AND HYDROKINLTIC 
RLNEWABI.,I1 ENERGY TECI-INOI.,OGIBS 
Be it ennacted hy lhe Sen& und the Hime of Represeniuiives of fhe Philipyines in 
Congress cis)rs,rembled: 
SECTION 1. Shorl Tide. 
This Act shall be known as the “Marine and Hydrokinetic 
l<enewahle Eiicrgy Promotion Act of 2007.” 
SEC1‘ION 2. Declaration ofpolicy. - It is the policy of the State to promote rcncwrtblc 
energy technologies, such as marine and hydrokinetic renewable energy, that reduce 
contributions to global warming gases and improve our country’s domestic energy production in 
a manner that is consistent with environmental protection, sustainable development, and 
cconornic prosperity. 
SEC‘I’ION 3. Ihjnition of Terms. - For purposes o f  this Act, the term 
(A) “Marine and, hydrokinetic renewable energy” means electrical energy from 
wdvcs, tidcs, and Currents in oceans, estuaries, and tidal arcas; frce flowing water 
in rivers, lakes, and streanis; free flowing water in man-made channels, including 
projects that utilize non-mechanical structures to accelerate the flow of water for 
electric power production purposes; and differentials in ocean temperature or 
ocean thcrmal energy convcrsion. 
The term shall not include energy from any source that utilizes a dam: 
diversionary, structurc, or impoundment for electric power production purposcs. 


(B) “Net proceeds” means proceeds from the commercial sale of electricity after 
payment of project-relatcd costs, including taxes and regulatory fees that have 
not been paid using fnnds froin a loan provided for the project under Section 5. 
SECTION 4. Research und Development. -- The Secretary of Energy, in consultation with 
the Sccrctary of I3nvironment and Natural Resources and the Secrctary of Trade and Industry, 
shall eStdbliSh a program of inarine and hydrokinetic renewable energy research focused on 
(A) Developing and demonstrating marine and hydrokinctic rcnewablc cncrgy 
technologies; 
(U) Reducing the manufacturing and operation costs o f  marine and hydroltinctic 
renewable energy teclinologies; 
(C) Increasing the reliability and survivability of niarinc and hydrokinetic rencwablc 
energy Facilities; 
(1)) Integrating marine and hydrokinetic renewablc cncrgy into electric grids; 
(E) Identifying opportunities for cross fertilization and development of economies of 
scale bctweeii offshore wind and marine and hydrokinctic rencwablc cncrgy sourccs; 
(F) Identifying the environniental impacts of marine and hyholcinetic renewable energy 
technologies and ways to address adverse impacts, and providing puhlic information 
concerning technologies and other means available for monitoring and determining 
environmental impacts; and 
(G) Standards development, demonstration, and technology transfer for advanced 
systems engineering and systein integration methods to identify critical interfaces. 
SI?CI‘ION 5. Aduptive Managernen1 and Environnwntal Fund. - ‘l’hc Secretary of 
Energy shall establish an Adaptive Management and Environmental Fund, and shall lend 
anionnts from that fund to entities to cover the costs of projects that producc marinc and 
hydrokinetic renewable energy. Such costs include design, fabrication, deployment, operation, 
monitoring, and decommissioning costs. Imns undcr this scction may be subordinatc to project- 
related loans provided by commercial lending institutions to the extent the Secretary of Energy 


coiisiders appropriate. 
As a condition of receiving a loan under this scction, a recipieut shall provide reasonable 
access, to government agencies and other research institutions as die Secretary considers 
appropriatc, to tlic project area and facilitics for thc purposes of indcpcndcnt enviroiiinental 
research. 
The results of any assessment or demonstration paid for, in whole or in part, with funds 
provided under this section shall be made available to the public, except to the extent that they 
contain information that is protected from disclosure by appropriate laws. 
The Secretary of Energy shall requiri a recipient of a loan under this section to repay the 
loan, plus interest at a rate of 2.1 per cenfum per year, over a period not to cxceed 20 years, 
beginning a€tw the coniniercial generation of electric power from the project comniences. Such 
repayment shall bc required at a rate that takes into account the economic viability of the loan 
recipient and ensures regular and timely repayment ofthe loan. 
No repayments shall be requircd under this Section until after thc projcct gcncrates nct 
proceeds. Repayment of' a loan,shall terminate as of the date that the project for which the loan 
was provided ceases coinrnercial generation of clectricity if a governnicntal permitting authority 
has ordered the closure of .the facility because of a iinding that the project has unacceptable 
adverse environmental impacts, except that thc Secretary shall require a loan recipient to 
continue making loan repayments for the cost of equipment, obtained using funds €rom the loan 
that have not otherwise been repaidunder rules established by the Secretary, that is utilizcd in a 
subsequent project Tor the commercial generation of electricity. 
In order to recei,ve a loan undcr this Section, an applicant for a license or pcrniit to 
construct, operate, or maintain a maine or hydrokinetic renewable energy project shall provide 
the Secretary of Encrgy an adaptive managcment plan for the proposed project. Such plan shall 
(A) Be prepared in consultation with other parties to the permitting or licensing 
proceeding, including all government agencies and instrumcntalitics with 
authority under applicable laws to require or recommend design or operating 
conditions, for protcction, mitigation, and enhanccnicnt of fish and wildlife 
resources, water quality, navigation, public safety, land reservations, or 


recreation, for incorporation into Uie permit or license; 
(13) Sct forth specific and measurable objectives for the protcctioii, mitigation, and 
enhancement of fish and wildlife resources, water quality, navigation, public 
safety, land reservations, or rccrcation, as required or recommcnded by 
governmental agencies described. in paragraph (I), and shall require monitoring 
to ensure that these objectivcs are met; 
(C) Provide specifically for the modification or, if necessary, removal of the marine 
or hydrokinetic rencwablc cncrgy project based on findings by the Secretary of 
Energy, the. Secretary .of Environment and Natural Resources, and the Secretary 
of Trade and. lndustry that tbc marine or hydrokinetic renewable energy project 
has not attained or will not attain the specific and measurable objectives; aid 
(D) Dc approved and incorporated in the license or pcrmit. 
The SecTekry of Energy shall transmit a report to the Congress when the Secretary of 
Ilncrgy determines that the technologies supported under this Act havc achieved a level of 
maturity sufficient to enable the expiration of the program under this Act. The Secretary or 
Ihcrgy shall not inakc any new loans undcr this scction after the rcport is transmitted under this 
paragraph. 
SECTION 6. Programmutic Eizvironmenlal Impact Statemen/. .,-. The Secretary of 
IXnvironnieiit and Natural Kcsources shall, in cooperation with Uie Secretary of Energy md thc 
Secretary of Trade and Industry, and in consultation with appropriate government agencies, 
jointly prepare programmatic cnvironmeiital impact statements, regarding the impacts of the 
deployment of marine and hydroltiiielic renewable energy technologies in the navigable waters 
of the Philippines. One programmatic environmental impact stateinent shall be prepared uidcr 
this section for each of the Regions of the Philippines. The programmatic environmental impact 
statements under Uiis scction. shall be issued not later than eighteen (18) months after the date of 
enactment of this Act. The programmatic environmental inipact statements shall evaluate aniong 
other th,ings die potcntial impacts of site selection on fish and wildlife and related habitat. 
Nothing in this section shall operate to delay consideration of any application for a license or 


permit for a marine and hydrokinetic renewable energy technology project. 
SECTION 7. Appropriutions. 
'-'- Such sums as mdy be necessary for the initial 
iinpleinentation of this Act shall he taken from the current appropriations of ihc Ikpaifnient of 
Energy. Thereafter, the fund necessary to carry oul the provisions of this Act shall be included 
in the annual General Appropriations Act. 
S13CI'ION 8. Repeulhg Clause. - Any law, presidential decrcc or issuance, executivc 
order, presidential proclamation, rule and regulation or parts thereof inconsistent with the 
provisions of this Act, arc hereby repealed, modified, or amended accordingly. 
SECI'lON 9. Separability Clause. - If any provision of this Act is declared 
unconstitutional, the ~ a m e  shall not al'fect the validity and effectivity ol' the other provisions 
hereof. 
SECI'ION 10. &fleciivity - This Act shall talte effcct fifteen (15) days after its 
publication in at least two newspapers ol' general circulation. 
Approved, 
/jab