FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S. B. No. 
617 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORYNOTE 
Section 7, Article I O  of the Constitution provides that, “Local government 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.” While Section 18 of the 
Local Government Code of 1991 reads in part: “Local government units shall have the 
power and authority x x x to have an equitable share in the proceeds from the utilization 
and development of the national wealth and resources within their respective territorial 
jurisdictions including sharing the same with the inhabitants by the way of direct 
benefits, x x x and to apply their resources and assets for productive, development or 
welfare purposes in the exercise or furtherance of their government or propriety powers 
and functions and thereby ensure their development into self-reliant communities and 
active participants in the attainment of national goals.” 
The Bicol region, which provides a considerable amount of the power 
requirements of Luzon grid including Metro Manila and its environs and, as a 
consequence of it, shoulders the environmental cost of power generation, must be given 
an equitable share in the utilization of the natural resources located thereat and enough 
latitude and applying these resources for its own welfare and development purposes. 
The primary objective of this bill is the attainment of the same power rate for 
residential household in the entire Bicol Region with that rate of power being applied to 
residential households in Metro Manila. The long-term goal is cheaper power rates for 
all as more geothermal facilities are activated in the region to service the energy 
requirements of other regions. The secondary objectives are (1) to provide sufficient 
health care subsidies for localities within the Bicol Region especially damaged and 
prejudiced by the highly toxic effluent of the power generation facilities situated in their 
respective municipalities/provinces through direct percentage allocation of at least ten 
percent (10%) of the gross revenues earned by the National Power Corporation in the 
Bicol Region and (2) to provide sufficient funding for the restoration and rehabilitation of 
the environment and prevention of natural calamities brought about by the power 
generation activities of companies and corporations operating in the region. Although 
the creation of a separate grid may be done by the Secretary of Energy (see Sec. 8 (e) 
of the Department of Energy Act of 1992), the magnitude and scope or equitable 
preferential benefits to be granted to the Bicol Region necessitate a legislative action in 
order to fully and comprehensively translate this laudable intent into practical reality. In 
view of the foregoing considerations, early passage of this measure is earnestly 
requested. 
Senator 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
7 jUL -3 
i’ i 
.t> I 
First Regular Session 
) 
/ 
~~~~~~V~~~ m : - 
S E N A T E  
S.B.NO. 
617 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
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 
Be it enacted by fhe Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTlON 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 energy requirements of the nation. 
SEC. 3. Creation of fhe 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 rates with the 
residential households in Metro Manila and eventually, cheaper power rates, depending 
on the increasing number of geothermal facilities operating in the region. 
SEC. 4. Health Care Subsidies. - A ten percent (10%) sinking fund shall be 
deducted from all revenues of the National 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 the municipalities shall have a 
sixty percent (60%) share of the said subsidies, with the remaining forty percent (40%) 
being given to the province as the case may be: Provided further, that the local 
government treasurer have full access to all NAPOCOR accounts in the region for 
immediate availment of said funds. 
SEC. 5. Environmenfal Rehabilitation Fund. - A five percent (5%) 
environmental rehabilitation fund to be taken from the national gross revenues of the 
Philippines 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. lmplemenfing Rules and Regulations. - The Department of Energy in 
consultation with the Department of Health and the Department of Environment and 


Natural Resources shall promulgate the pertinent rules and regulations necessary to 
implement the provision 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. 
portion thereof, inconsistent with this Act are hereby repealed or modified accordingly. 
publication in at least two (2) national newspapers of general circulation. 
SEC. 8. Repealing Clause. - .All laws, decrees, orders, rules and regulation, or 
SEC. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
Approved,