NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 647
ot tin'
71 JUL 14 P4--03
Introduced by SENATOR IMEE R. MARCOS
AN ACT
FURTHER PROMOTING RENEWABLC] ENERGY, AMENDING 
1 HEREFOR REPUBLIC ACT NO. 9513 , OTHERWISE KNOWN AS THE 
"RENEWABLE ENERGY ACT OF 2008" AND REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS "THE LOCAL GOVERNMENT CODE OF 1991,"
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 16 of the 1987 Constitution provides that, "the State shall 
protect and advance the right of the people to a balanced and healthful ecology in 
accord with the rhythm and harmony of nature.” Studies show that renewable energy 
resources (ie. sunlight, geothermal, heat, wind, tides, water, and other biomass) 
provide cleaner and better alternatives to fossil fuels since the former help reduce 
carbon emissions.
Article X, Section 7 of the 1987 Constitution also provides that "local 
governments shall be entitled 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." Thus, the Local Government Units (LGU's) should be treated as effective 
partners in promoJng the development of renewable energy by giving them their just 
share in the proceeds of the utilization and development of renewable energy potentials 
in their areas.
Unfortunately, a shift to renewable energy has been hampered by the lack of 
local government enthusiasm in renewable energy resources due to loss of livelihood 
and/or income, re luced collection in real property caxes, uelete,'iou' effects to native 
biodiversity and fisheries, raising the risk of tsunamis or storm surges, as well as health 
concerns from rising temperatures and vibration. Further, Republic Act No. 9513, 
otherwise known as the "Renewable Energy Act of 2008” failed to address the 
constitutionally mandated just share of the LGUs in the proceeds of such activity.
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For instance, the Province of Ilocos Norte, which is known as the ^'Renewable 
Energy Capita! of Southeast Asia generates more than 230 megawatts of renewable 
energy resources chrough the windmills in the municipalities of Bangui, Burgos, and 
Pagudpod, the solar power plant in the Municipality of Currimao, and the hydroelectric 
plant In the Municipality of Pagudpud. Unfortunately, these LGU's collect much reduced 
amounts In real property taxes, collect with Renewable Energy (RE) developers merely 
paying much-reduced real property taxes often under protest. Thus, this bill seeks to 
amend Republic Act No. 9513 co secure a reasonable share of the LGU's in the 
promotion and development of renewable energy.
Further, to prevent violent incidents such as the bombing of the two transmission 
towers of the Pagudpud Wind Farm of North Luzon Renewables (NLR), in 2016, the bill 
seeks to ensure that safety and security measures by the Philippine National Police and, 
in times of alleged terrorism or insurgency, the Armed Forces of the Philippines, in 
protecting critical infrastructure, such as power ge.ieration facil'ties
Given the abovementioned circumstances, the immediate passage of this bill is 
earnestly sought.
IMEE R. MARCOS/


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No.
SENATE
647
VB' 't
of l''e f i/i. '-’t
’22 JUL 14 P4 -03
RKEIVu) B ;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
FURTHER PROMOTING RENEWABLE ENERGY, AMENDING 
THEREFOR REPUBLIC ACT NO. 9513 , OTHERWISE KNOWN AS THE 
"RENEWABLE ENERGY ACT OF 2008" AND REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS "THE LOCAL GOVERNMENT CODE OF 1991,"
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. A new section in Chapter III of R.A. No. 9513 is hereby inserted, 
to read as follows:
"SECTION 6-A. PROJECT ENDORSEMENT BY THE LOCAL 
GOVERNMENT UNIT - NO RENEWABLE ENERGY SERVICE 
(OPERATING) CONTRACT SHALL BE SIGNED BETWEEN THE 
DEPARTMENT OF ENERGY (DOE) AND THE RENEWABLE 
ENERGY (RE) DEVELOPER WITHOUT THE ENDORSEMENT 
FROM THE LEGISLATIVE BODY OF THE CONCERNED LOCAL 
GOVE RNMENT UNIT (I GU). SUCH ENL^ORSEMEN^ Sh*ALL NOT 
BE UNREASONABLY WITHHELD BY THE LGU. FOR THIS 
PURPOSE, THE LGU AND RE DEVELOPER SHALL CONDUCT 
PUBLIC CONSULTATIONS WHERE THE CONSTITUENTS ARE 
ADEQUATELY INFORMED OF THE DETAILS OF THE PROPOSED 
RENEWABLE ENERGY PROJECT AND THAT THEY ARE GIVEN 
THE OPPORTUNITY VO EXPRESS THEIR VIEWS ON THE 
ISSUE."


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SEC. 2. Section 13 of R.A. No. 9513 is hereby amended, to read as follows:
"Section 13. Government Share. - The government share on 
existing and new RE development projects shall be equal to [ofte 
percent (1%)] TWO PERCENT (2%) of the gross Income of RE 
resource developers resulting 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 
except for indigenous geothermal energy, which shall be at [one and 
a half -percent (l;-5%)] TWO AND A HALF PERCENT (2.5%) of 
gross income. PROVIDED THAT, THE GOVERNMENT SHARE 
SHALL BE ALLOCATED TO THE NATIONAL GOVERNMENT AND 
THE LGU UNDER A 40-60 RATIO. PROVIDED FURTHER THAT,
THE SHARE Or THE LGU SHALL BE DISTRIBUTED, AS 
FOLLOWS:
(A) FORTY PERCENT (40%) TO THE CONCERNED
PROVINCE;
(B) THIRTY PERCENT (30%) TO THE CONCERNED CITY
OR MUNICIPALITY; AND
VC) THIRTY PERCENT (30%) TO THE GOf JCERNED
BARANGAY.
THE SHARE OF EACH LOCAL GOVERNMENT UNIT SHALL BE 
RELEASED, WITHOUT NEED OF ANY FURTHER ACTION, 
DIRECTLY TO THE PROVINCIAL, CITY, MUNICIPALITY, OR 
BAR/uNGAY TREASURER, AS THE CASE MAY Bi-, ON A 
QUARTERLY BASIS WITHIN FIVE (5) DAYS AFTER THE END 
OF EACH QUARTER, AND WHICH SHALL NOT BE SUBJECT TO 
ANY LIEN OR HOLDBACK THAT MAY BE IMPOSED BY THE 
NATIONAL GOVERNMENT FOR WHATEVER PURPOSE.
To further promote the development of RE projects, the 
government hereby waives its share from the proceeds of micro-scale 
projects for communal purposes and non-commercial operations, 
which are not greater than one hundred (100) kilowatts."
SEC. 3. Section 290 of R.A. No. 7160 is hereby amended, to read as follows:
"Section 290. Amount of Share of Local Government Units. - 
Local government units shall, in addition to the internal revenue 
allotment, have a share of forty percent (40%) of the gross collection 
derived by the national government from the preceding fiscal year 
from mining taxes, royalties, forestry, [eod] fishery charges, POWER


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GENERATION PROJECTS and such other taxes, fees, cr charges, 
including related surcharges, interests, or fines, and from its share in 
any co-production, joint venture or production sharing agreement in 
the utilization and development of the national wealth within their 
territorial jurisdiction."
SEC. 4. Section 15 of R.A. No. 9513 is hereby amended, to read as follows:
"Section 15. Incentives for Renewable Energy Projects and 
Activities. - RE developers of renewable energy facilities, including 
hybrid systems. In proportion to and to the extent of the RE 
component, for both power and non-power applications, as duly 
certified by the DOE, in consultation with the BOI, shall be entitled to 
the following incentives:
xxx"
(c) Special Realty Tax Rates on Equipment and Machinery. - 
Any law to the contrary notwithstanding, realty and other taxes on 
[eivfi—werk-ST^ equipment [,] AND machinery t—af^d—ether 
ifflpfevemonts] of a Registered RE Developer actually and exclusively 
used for RE facilities shall not exceed one and a half percent (1.5%) 
of their original cost less accumulated normal depreciation or net book 
value: Provided, That in case of an integrated resource development 
and generation facility as provided under Republic Act No. 9136, the 
real property tax shall only be imposed on the power plant;
xxx"
SEC. 5. A new section In R.A. No. 9513 is hereby inserted, to read as follows:
"SEC. 33. THE PHILIPPINE NATIONAL POLICE (PNP)
SHALL ENSURE THAT SAFETY AND SECURITY MEASURES 
SHALL BE ENFORCED, AT ALL TIMES, TO PROTECT 
CRITICAL INFRASTRUCTURE, INCLUDING BUT NOT 
LIMITED TO, POWER GENERATION FACILITIES."
SEC. 6. A new section in R.A. No. 9513 is hereby inserted, to read as follows:
"src. 34. WHENEVER TERRORISM OR INSURGENCY 
IS ALLEGED AND WHEN PUBLIC SAFETY REQUIRES IT, THE 
LGUS MAY CALL UPON THE ARMED FORCES OF THE 
PHILIPPINES (AFP) TO SUPPRESS VIOLENCE AND DEFEND 
CRITICAL INFRASTRUCTURE, INCLUDING BUT NOT 
LIMITED TO, POWER GENERATION FACILITIES."


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SEC. 7. The sections in R.a. No. 9513 shall be renumbered accordingly.
SEC. 8. Separability Clause. - If for any reason any part or provision of this Act 
shall be deemed unconstitutional or invalid, the other sections or provisions hereof shall 
not be affected and shall remain in force and effect.
SEC. 9. Repealing Clause. - All laws, decrees, executive issuances, rules and 
regulations Inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days after Its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,