PRES,
Ge oy.
Republic of the Philippines oe
HOUSE OF REPRESENTATIVES /,/ RECEIVED

Quezon City

TIME: St

NINETEENTH CONGRESS.
First Regular Session

4468

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE 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

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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.

MAXIMO, JR. Y. DALO!


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 446

INTRODUCED BY REPRESENTATIVE 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, IN A LANGUAGE AND PROCESS
UNDERSTANDABLE TO THE COMMUNITY,”

SEC. 4. Anew 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,