FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
Introduced by SENATOR GREGORIO B. HONASAN I1 
EXPLANATORY NOTE 
Pursuant to Section 7, Article 10 of the Constitution and Section 18 of the Local Government of 
1991, tlie Bicol Region, which provides a considerable amount of the power requirements of the Luzon 
grid including Metro Manila and its environs and, as a consequence of it, shoulders the environment cost 
of power generation, must be given an equitable share in the utilization of the natural resources located 
thereat and enough latitude in applying these resources for its own welfare and development purposes. 
Bicol Region has been facing a critical problem of power sourcing. The entire region depends on 
four (4) power lines which cater its six (6) provinces. However, recent untoward developments have 
caused destabilization of the power distribution in the region. According to the National Transmission 
Corporation (TransCo), the region has relied to only single power line, the Tayabas Naga Line 1 for its 
power supply stability. The other three power lines in Luzou Grid which distribute power supply to this 
region remained non-operational due to past typhoons and pilferages. Another line, the High Voltage 
Direct Current, which reeds power supply horn tlie Visayas to Bicol, has likewise not been utilized due to 
prohlcnns i n  co~nversioii of voltage to the Luzon Grid.' 
Primarily, the proposed measure seeks to create the Bicol Power Grid, separate and distinct from 
tlie Luzon Power Grid, in support of and respond to the growing energy requirement of the Bicol Region. 
It aims to guarantee and provide equitable and equal power supply to the entire Bicol Region, the same 
with that of the residential households in Metro Manila. It further intends to attain cheaper power rates 
for all as more geothermal facilities are activated in the region to senice the energy requirements of other 
regions. 
The bill further intends to: (1) provide sufficient health care subsidies for localities within the 
Bicol Region specially damaged and prejudiced by the highly toxic effluent of the power generation 
facilities situated in their respective municipalitiesiprovinces through direct percentage allocations of at 
least ten percent (10%) of the gross revenues earned by the National Power Corporation in the Bicol 
Region; and (2) provide sufficient funding for its restoration and rehabilitation of the environment and 
prevention of natural calamities brought about by the power generation activities of companies and 
corporations operating in tlie region. 
Allhough the creation of a separate grid may be done by the Secretary of Energy, pursuant to 
Section 8 (e) of Republic Act No. 7638, otherwise known as the "Department of Energy Act of 1992", the 
magnitude and scope of equitable preferential benefits to be granted to the Bicol Region necessitate a 
legislative action in ordet to fully and comprehensively translate this laudable intent into practical reality. 
In view of the foregoing considerations, the immedi 
earnestly sought. 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
i 
i t ’ - h  
j 
b
“
 
First Regular Session 
1 
S E N A T E  
Introduced by SENATOR GREGORIO B. HONASAN I1 
AN ACT 
CREATING THE BICOL POWER GRID TO ENSURE THE GRANT OF 
EQUITABLE 
PREFERENTIAL 
BENEFITS 
TO 
REGIONS 
HOSTING 
RELIABLE AND CHEAP GEOTHERMAL POWER AND FOR OTHER 
PURPOSES 
0 
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 “Bicol Power Act of 
2007”. 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
grant equitable preferential benefits to regions of the country producing cheap geothermal 
power, in support of the growing requirements of the nation. 
SEC. 3. 
Creation of the Bicol Power Grid. - 
The President, through the 
Department of Energy, is hereby authorized to ensure the efficient and expeditious 
formation and creation of the Bicol Power Grid, separate and distinct from the Luzon 
Power Grid, guaranteeing to the people in the region equal power with residential 
households in Metro Manila and eventually, cheaper power rates, depending on the 
increasing number of geotheriiial facilities operating in the region. 
SEC. 4. Health Care Statistics: 
A ten percent (10%) sinking fund shall be 
deductcd from all revenues of the Natioiial Power Corporation (NAPOCOR) in the Bicol 
Region, to finance health care programs for residents and communities directly affected 
by the effluent of the geothermal facilities: Provided, that municipalities shall have a 
sixty percent (60%) share of the said subsidies, with the remaining forty percent (40%) 
being giveii to the province as the case maybe: 
Provided further, that the local 
governmciit ti-easures shall have full access to all NAPOCOR accounts in the region for 
immediate availinelit of said funds. 


SEC. 5. Environmental Rehabilitation Fund. A Five percent (5%) environmental 
rehabilitation fund to be taken from the national gross revenues of the Philippine 
Amusement and Gaming Corporation (PAGCOR), per annum, shall likewise be created 
to reduce the ecological harm, dislocation and damage to all regions hosting cheap 
geothermal power facilities in support of the energy needs of the nation. 
SEC. 6. Implementing Rules and Regulations. The Department of Energy shall 
promulgate the pertinent rules and regulations necessary to implement the provisions of 
this Act. 
SEC. 7. Separability Clause. - If, for any reason, any provision of this Act is 
declared unconstitutional or invalid, other parts or provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SEC. 8. Repealing Clause. - All laws, decrees, orders, rules and regulations, or 
portion thereof, inconsistent with this Act are hereby repealed or modified accordingly. 
. 
SEC. 9. 
Effectivity. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved,