· . 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
FIRST REGULAR SESSION 
) 
SENATE 
SENATE BILL NO, __ 
2_2_4 
"1" 3 JUL·· 'I 
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INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Republic Act No, 9136, otherwise known as the "Electric Power 
Industry Reform Act of 200 I" clearly stated that the obligations of 
generating companies and energy resource developers to communities 
hosting energy generating facilities and/or energy resource developers as 
defined under Chapter 11, Sections 289 to 294 of the Local Government 
Code and Section 5(i) of Republic Act No. 7638 and their implementing 
rules and regulations and applicable orders and circulars consistent with 
this Act shall continue: Provided, further, That the obligations mandated 
under Chapter 11, Section 291 of Republic Act No. 7160, shall apply to 
privately-owned corporations or entities utilizing the national wealth of 
the locality. 
Moreover, the aforesaid law so states: To ensure the effective 
implementation of the reduction in cost of electricity in the communities 
where the source of energy is located, the mechanics and procedures 
prescribed in the Department of the Interior and Local Government 
(DILG) - DOE Circulars No. 95-01 and 98-01 dated October 31, 1995 and 
September 30, 1998, respectively and other issuances related thereto 
shall be pursued. 
The aforesaid law, however, intends to mandate the direct 
remittance of the aforesaid benefits to the host communities instead of 
remittitJ.g them to the Department of Energy to assure that the said 
benefit~ may be utilized immediately for their development and for the 
introduction of improvements. 
Through this measure, we will be able to facilitate the prompt 
remittance of said benefits to the host communities in consonance with 
the intention of all laws previously legislated. 
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In view of the foregoing, immediate passage of this bill is earnestly 
sought. 
JOSEPH ~CT~R~ITO 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
FIRST REGULAR SESSION 
) 
SENATE 
SENATE BILL NO. 224 
IN~RODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT 
REQUIRING ALL INDEPENDENT POWER PRODUCERS, GENERATION 
COMPANIES -OR ENERGY RESOURCE DEVELOPERS TO REMIT THE 
AMOUNT THEY ARE REQUIRED TO SET ASIDE AS FINANCIAL 
BENEFIT DIRECTLY TO THE HOST COMMUNITIES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 
1. 
All independent power producers, generation 
companies or energy resource developers, whether publicly or privately 
owned, shall remit directly to the local government units or other host 
communities the benefits they are required to set aside as financial 
benefit to host communities pursuant to Section 66 of Republic Act No. 
9136, otherwise known as the "Electric Power Industry Reform Act of 
2001"; as defined in Sections 289 to 294, Chapter II of Republic Act No. 
7160, otherwise known as the "Local Government Code of 1991"; the 
benefits defined in Section 5(i) of Republic Act No. 7638, otherwise 
known as the "Department of Energy Act of 1992" and Rule 29 of Energy 
Regulation No. 1-94. 
SECTION 
2. The use of aforesaid amounts remitted by 
independent power producers, generation companies or energy resource 
developers to the host communities concerned shall remain subject to 
the guidelines set by the Department of Energy. 
SECTION 3. 
All laws, presidential decrees, executive orders, 
letters of instruction, rules and regulations or parts thereof inconsistent 
with the provisions of this Act are hereby repealed or modified 
accordipgly. 


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SECTION 4. This Act shall take effect immediately upon its 
complete pu-blication in at least two (2) 
newspapers of general 
circulation. 
Approved,