REPRE
OS SEN

Ky “yN

Republic of the Philippines [S RECEIVED <\
HOUSE OF REPRESENTATIVES {2 pare 0? ut 2005 “I
Quezon City * TIME .

BY Tee ¥

TWENTIETH CONGRESS
First Regular Session

G ey
0 nine SY

HOUSE BILL No. 1400

INTRODUCED BY REP. MAXIMO JR. Y. DALOG

EXPLANATORY NOTE

This bill seeks to protect, recognize and implement the rights of
Indigenous Peoples or Indigenous Cultural Communities affected by renewable
energy investments in their ancestral lands/domains amending for the purpose
Republic Act No. 9513, otherwise known as “The Renewable Energy Act of
2008.”

In 1997, the Tenth Congress passed the Indigenous Peoples Rights Act
of 1997 (IPRA) primarily to correct historical injustice. It was labeled as a radical
policy reform as it introduced provisions which recognized rights of IPs/ICCs
like rights to their ancestral lands/domain, the right to participate and be
consulted in matters that affect them and the priority right in the harvesting,
extraction, development or exploitation of any natural resources within the
ancestral domains.

However, to this day, these rights continue to be ignored. This is evident
in the implementation of the Renewable Energy Act of 2008 where the Free and
Prior informed Consent (FPIC) comes only after the Renewable Energy
Contracts have been awarded by the Department of Energy. This leaves little
room for the affected IPs/ICCs to choose which corporation to implement the
project should they consent. Or worse, they are deprived of the opportunity to
develop the project should they reject the project proponent.

In addition, the communities near watershed areas where IPs/ICCs are
mostly located are not even recognized or considered in the definition of host
communities in hydropower projects in the Implementing Rules and Regulation
of the Electric Power Industry Reform Act of 2001 (EPIRA).

Finally, a careful study also of the FPIC-MOAs that have been forged
between RE developers and ICCs specifically on hydroelectric power projects
would reveal that the agreement on royalty payments vary from as little as a


quarter of a centavo per kilowatt hour (PhP.0025/kwh) to as high as more than
eleven centavos per kilowatt hour (.PhP.1142/kwh). To prevent any confusion
and abuse, it is also imperative that a minimum royalty payment be stated in the
law.

Thus, this bill seeks to recognize the rights of IPs/ICCs laid down in the
IPRA and harmonize it with the provisions of the Renewable Energy Act of 2008

In view of the foregoing, the passage of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bit No, 1409

INTRODUCED BY REP. MAXIMO JR. Y. DALOG

AN ACT
PROTECTING THE RIGHTS OF INDIGENOUS PEOPLES AND
INDIGENOUS CULTURAL COMMUNITIES AFFECTED BY RENEWABLE
ENERGY INVESTMENTS IN THEIR ANCESTRAL LANDS, AMENDING
CERTAIN PROVISIONS OF REPUBLIC ACT 9513, OTHERWISE KNOWN
AS “THE RENEWABLE ENERGY ACT OF 2008”

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. A new subsection denominated as subsection 4(A)
before the word “Biomass Energy Systems” in Section 4 of Republic Act 9513,
is hereby inserted to read as follows:

“SEC. 4. Definition of Terms. - As used in this Act, the following
terms are herein defined:

“(A) ANCESTRAL DOMAINS REFER TO ALL AREAS
GENERALLY BELONGING TO INDIGENOUS CULTURAL
COMMUNITIES OR INDIGENOUS PEOPLES COMPRISING
LANDS, INLAND WATERS, COASTAL AREAS, AND NATURAL
RESOURCES THEREIN, HELD UNDER A CLAIM OF
OWNERSHIP, OCCUPIED OR POSSESSED BY THEMSELVES
OR THROUGH THEIR ANCESTORS, COMMUNALLY OR
INDIVIDUALLY SINCE TIME IMMEMORIAL, CONTINUOUSLY
TO THE PRESENT EXCEPT WHEN INTERRUPTED BY WAR,
FORCE MAJEURE OR DISPLACEMENT BY FORCE, DECEIT,
STEALTH OR AS A CONSEQUENCE OF GOVERNMENT
PROJECTS OR ANY OTHER VOLUNTARY DEALINGS
ENTERED INTO BY GOVERNMENT AND _ PRIVATE
INDIVIDUALS, CORPORATIONS, AND WHICH ARE
NECESSARY TO ENSURE THEIR ECONOMIC, SOCIAL AND


CULTURAL WELFARE. IT SHALL INCLUDE ANCESTRAL LAND,
FORESTS, PASTURE, RESIDENTIAL, AGRICULTURAL, AND
OTHER LANDS INDIVIDUALLY OWNED WHETHER ALIENABLE
AND DISPOSABLE OR OTHERWISE, HUNTING GROUNDS,
BURIAL GROUNDS, WORSHIP AREAS, BODIES OF WATER,
MINERAL AND OTHER NATURAL RESOURCES, AND LANDS
WHICH MAY NO LONGER BE EXCLUSIVELY OCCUPIED BY
INDIGENOUS CULTURAL COMMUNITIES OR INDIGENOUS
PEOPLES BUT TRADITIONALLY HAD ACCESS FOR THEIR
SUBSISTENCE AND TRADITIONAL ACTIVITIES,
PARTICULARLY THE HOME RANGES OF INDIGENOUS
CULTURAL COMMUNITIES OR INDIGENOUS PEOPLES WHO
ARE STILL NOMADIC OR SHIFTING CULTIVATORS;”

SEC. 2. A new subsection denominated as Subsection 4(a-1) after the
word “ancestral domain” in the immediately preceding subsection, is hereby
inserted and the old Subsection 4(a) is hereby renumbered as Subsection 4(A-
2), to read as follows:

“(A-1) ANCESTRAL LANDS REFER TO LAND OCCUPIED,
POSSESSED AND UTILIZED BY INDIVIDUALS, FAMILIES AND
CLANS WHO ARE MEMBERS OF THE INDIGENOUS
CULTURAL COMMUNITIES OR INDIGENOUS PEOPLES SINCE
TIME IMMEMORIAL, BY THEMSELVES OR THROUGH THEIR
PREDECESSORS-IN-INTEREST, UNDER CLAIMS OF
INDIVIDUAL OR TRADITIONAL GROUP OWNERSHIP,
CONTINUOUSLY, TO THE PRESENT EXCEPT WHEN
INTERRUPTED BY WAR, FORCE MAJEURE OR
DISPLACEMENT BY FORCE, DECEIT, STEALTH, OR AS A
CONSEQUENCE OF GOVERNMENT PROJECTS AND OTHER
VOLUNTARY DEALINGS ENTERED INTO BY GOVERNMENT
AND PRIVATE INDIVIDUALS [/CORPORATIONS] OR
JURIDICAL ENTITIES, INCLUDING RESIDENTIAL LOTS, RICE
TERRACES OR PADDIES, PRIVATE FORESTS, SWIDDEN
FARMS AND TREE LOTS;”

SEC. 3. A new subsection denominated as Subsection 4(n-1) after the
word “Energy Regulatory Commission,” is hereby inserted to read as follows:

“(N-1) FREE AND PRIOR INFORMED CONSENT REFERS
TO THE CONSENSUS OF ALL MEMBERS OF THE
INDIGENOUS CULTURAL COMMUNITIES OR INDIGENOUS
PEOPLES TO BE DETERMINED IN ACCORDANCE WITH THEIR
RESPECTIVE CUSTOMARY LAWS AND PRACTICES, FREE


FROM ANY EXTERNAL MANIPULATION, INTERFERENCE AND
COERCION, AND OBTAINED AFTER FULLY DISCLOSING THE
INTENT AND SCOPE OF THE ACTIVITY, INA LANGUAGE AND
PROCESS UNDERSTANDABLE TO THE COMMUNITY,”

SEC. 4. A new subsection denominated as Subsection 4(bbb-1) after the
word “Transmission of Electricity,” is hereby inserted to read as follows:

“(BBB-1) “WATERSHED” IS A LAND AREA DRAINED BY A
STREAM OR FIXED BODY OF WATER AND ITS TRIBUTARIES
HAVING COMMON OUTLET FOR SURFACE RUN-OFF. IT
ENCOMPASSES THE TOPOGRAPHIC AND HYDROLOGICAL
BOUNDARIES OF THE TOTAL LAND AREA THAT
CONTRIBUTES TO THE FLOW OF THE WATER BODY,
UPSTREAM OF THE WATER TAPPING POINT, SUCH AS THE
DAM CREST.

SEC. 5. A new section denominated as Section 13-A is hereby inserted
after Section 13 of the same Act to read as follows:

“SEC. 13-A. ECOLOGICAL FEES. TO ENSURE THE
CONTINUOUS SUPPLY OF WATER IN HYDROPOWER
INVESTMENTS, THE CONCERNED GENERATION COMPANY SHALL.
PAY AN ECOLOGICAL FEE EQUAL TO ONE-HALF PERCENT (0.5%)
OF THE GROSS RECEIPTS OF THE RENEWABLE ENERGY
RESOURCE DEVELOPER FROM THE SALE OF RENEWABLE
ENERGY PRODUCED AND SUCH OTHER INCOME INCIDENTAL TO
AND ARISING FROM THE RENEWABLE ENERGY GENERATION,
TRANSMISSION, AND SALE OF ELECTRIC POWER SOLD PER YEAR
TO BE USED EXCLUSIVELY FOR THE MAINTENANCE AND
PRESERVATION OF THE WATERSHED WHICH SUPPLIES WATER
TO THE HYDROPOWER PLANT. SAID ECOLOGICAL FEE SHALL BE
GIVEN DIRECTLY TO THE LOCAL GOVERNMENT UNITS WHERE
THE WATERSHED IS LOCATED.”

SEC. 6. A new section denominated as Section 14-A is hereby inserted
after Section 14 of the same Act to read as follows:

“SEC. 14-A. COMPLIANCE WITH FREE AND PRIOR INFORMED
CONSENT. — NO RE APPLICATION OF ANY RE DEVELOPER SHALL
BE ACCEPTED WITHOUT THE FREE AND PRIOR INFORMED
CONSENT OF THE INDIGENOUS CULTURAL COMMUNITY OR
INDIGENOUS PEOPLES CONCERNED AND A CERTIFICATION
PRECONDITION ISSUED BY THE NATIONAL COMMISSION ON
INDIGENOUS PEOPLES, AS SPECIFIED UNDER SECTION 59 OF


REPUBLIC ACT NO. 8371, OTHERWISE KNOWN AS THE
“INDIGENOUS PEOPLES RIGHTS ACT OF 1997," UPON
VERIFICATION BY THE DOE, THAT A CONTRACT AREA OR A
PREDETERMINED AREA IS WITHIN OR COVERS AN ANCESTRAL
LAND/DOMAIN

SEC. 7. A new section denominated as Section 14-B is hereby inserted
after Section 14-A of the immediately preceding section to read as follows:

“SEC. 14-B. ROYALTY PAYMENTS FOR INDIGENOUS
CULTURAL COMMUNITIES. — IN THE EVENT OF AN AGREEMENT
BETWEEN THE GENERATION COMPANY AND THE INDIGENOUS
CULTURAL COMMUNITIES OR INDIGENOUS PEOPLES PURSUANT
TO THE PRECEDING SECTION, THE GENERATION COMPANY
SHALL PAY THE INDIGENOUS CULTURAL COMMUNITIES OR
INDIGENOUS PEOPLES CONCERNED, A ROYALTY PAYMENT
EQUAL TO THREE FOURTHS PERCENT (.75%) OF THE GROSS
RECEIPTS OF THE RENEWABLE ENERGY RESOURCE DEVELOPER
FROM THE SALE OF RENEWABLE ENERGY PRODUCED AND SUCH
OTHER INCOME INCIDENTAL TO AND ARISING FROM THE
RENEWABLE ENERGY GENERATION, TRANSMISSION, AND SALE
OF ELECTRIC POWER SOLD PER YEAR. THIS ROYALTY PAYMENT
SHALL FORM PART OF A TRUST FUND FOR THE SOCIO-
ECONOMIC WELL-BEING OF THE INDIGENOUS CULTURAL
COMMUNITIES OR INDIGENOUS PEOPLES.”

SEC. 8. Implementing Rules and Regulations. — Within ninety (90)
days from the effectivity of this Act, the Secretary of the Department of Energy,
in coordination with the Chairperson of the National Commission on Indigenous
People, Indigenous Cultural Communities or Indigenous Peoples’
Representatives, and relevant stakeholders, promulgate the rules and
regulations necessary for the effective implementation of the provisions of this
Act.

SEC. 9. Repealing Clause. — All laws, decrees, executive orders,
administrative orders or parts thereof inconsistent with the provisions of this Act
are hereby repealed, amended, or modified accordingly.

SEC. 10. Effectivity Clause. — This Act shall effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,