FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No.100S' 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
The 1987 Constitution promotes local' autonomy. Towards this end, 
the fundamental law mandates local government units to create its own 
sources of revenues in consonance with right to an equitable share in the 
proceeds of the utilization and development of the national wealth within 
their respective areas, in the manner provided by law, including sharing the 
same with the inhabitants by way of direct benefits. 
Pursuant to this mandate, Congress passed several measures, 
among which are the Electric Power Industry Reform Act of 2001, the 
Department of Energy Act of 1992, and the Local Government Code of 
1991. The pertinent provisions of these laws, however, fail to realize the 
expediency of sharing the benefits brought about by the proceeds of these 
revenues directly to the inhabitants of the concerned local government unit. 
This bill thus seeks to expedite the enjoyment by the inhabitants 
concerned the benefits from the proceeds of energy related project within a 
given locality. It introduces amendments to the aforementioned laws. 
In view of the foregoing, early passage of this bill is earnestly 
requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
} 
SENATE 
S. No.100S 
Introduced by Senator Manuel "Lito" M. Lapid 
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. 
Direct Remittance to' the Host Communities. -
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 11 of Republic Act No. 7160, otherwise known as the "Local Government Act 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 Regulations No. 1-94. 
SEC. 2. 
The use of the aforesaid amounts required 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 (DOE). 
SEC. 3. 
Separability Clause. - If, for any reason, any proVision of this Act 
is declared to be unconstitutional or invalid, the other provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SEC. 4. 
Repealing Clause. -
All laws, decrees, orders, rules and 
regulations or parts thereof inconsistent with the' provisions of this Act are hereby 
repealed, amended or modified accordingly. 
SEC. 5. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at' least two (2) newspapers of general 
circulation. 
Approved,