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Republic of the Philippines . are AG
House of Representatives | ,
@ueson City
Seventeenth Congress
First Regular Session

HOUSE BILL NO. 4892

Introduced by Rep. Rodel M. Batocabe, Rep. Alfredo in, Jr, and
Rep. Christopher S. Co
AN ACT

ESTABLISHING THE VIRTUAL ONE STOP SHOP
FOR THE PURPOSE OF STREAMLINING THE PERMITTING PROCESS
OF POWER GENERATION PROJECTS

EXPLANATORY NOTE

The Philippines aims to transform into a high middle income economy by 2022 and high income
one by 2040. This would mean a 7% Gross Domestic Product (GDP) growth in the short and
medium term,' which necessarily will be accompanied by an increased demand for energy.

‘The Department of Energy's conservative demand forecast, assuming a GDP growth of 5% and a
population growth of 1.5%, places total energy demand at 30,189MW by 2030, a 59.38% increase
from the country’s current dependable capacity. Taking into account committed projects, the
country still needs about 6,086 MW to meet the demand by 2030.

Meeting future demand in a timely manner is crucial because it has cost impacts on the consumers
and the economy. A shortage of power supply will force distribution utilities to buy from the
wholesale electricity spot market where spot prices can possibly shoot up, or purchase from more
expensive technologies — all leading to increased retail rates for the consumers. A one hour power
outage will cost the service sector and the industrial sector (sans mining, quarrying, and
construction) approximately Php 4.49 billion pesos, with Php 3.29 billion from Luzon, Php 646.37
million from the Visayas, and Php 556.60 million from Mindanao?

As such, it is important to attract greenfield power generation developers and fast-track the
construction of power plants. However, one significant barrier to entry of new plants is the lengthy
permitting process accompanied by copious documentary requirements. To illustrate, getting all
the required permits before one can start building a hydroelectric power plant will take 1,300 days
and 165 signatures from different government agencies.

“Economy growth on target-Dominguez” posted on 17 November 2016. Accessed from
intel index. php/economic-growth-on-target-dominguez/ on 14 December 2016.
2 “Rorecast for power der-and raised to 30,189 MW" by Victor V. Saulon posted on 1 September 2016, Accessed from
http:/ /swww bworldonline.com, 1p2section=Economyéetitle~forecast.for-power-demand-raised.to-30189-
mwSsid=132801 on 14 December 2016.
® Office of Senator Gatchalian (2016), Philippine Statistics Authority (2016)



This bill seeks to address the lengthy permitting process by (1) eliminating duplication,
redundancy, and overlapping mandates of various government agencies in documentary
submissions and processes, (2) supplying an online platform for government agencies to approve
applications as well as coordinate and share information, and (3) providing a paperless processing
system which serves as a single gateway for new power generation developers to access all
information necessary to comply with requirements,

In,xiew of the foregoing, the immediate pas: i of js sought.

co

)DEL'M. BATOCABE cl ISTOPHER S. CO.



Seventeenth Congress
First Regular Session

HOUSE BILL No. 4892

Introduced by Rep. Rodel M. Batocabe, Rep. Alfredo A. Gar!
Rep. Christopher S. Co

AN ACT
ESTABLISHING THE VIRTUAL ONE STOP SHOP
FOR THE PURPOSE OF STREAMLINING THE PERMITTING PROCESS
OF POWER GENERATION PROJECTS.

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

assembled:

CHAPTER I

GENERAL PROVISIONS

SECTION 1. Title. — This Act shall be known as the “Virtual One Stop Shop Act of 2016.”

SECTION 2. Declaration of Policy. ~ It is hereby declared the policy of the State to:

a) Ensure the quality, reliability, security, and affordability of energy by undertaking measures
to guarantee that supply meets demand in a timely manner;

b) Recognize the indispensable role of the private sector in power generation by attracting
greenfield power generation projects through an improved ease of doing business index, and
reducing the high transaction costs associated with copious requisites for new developers; and

c) Deliver efficient and effective service to the public by:

1. Eliminating duplication, redundancy, and overlapping mandates in documentary
submissions and processes by supplying an online platform for government agencies
to coordinate and share information; and

2. Providing a paperless processing system which serves as a single gateway for new
power generation developers to access all information necessary to comply with
requirements.


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SECTION 3. Scope. — This Act shall apply to all new power generation projects throughout the country

and all departments and agencies involved in the permitting process of power generation projects

including but not limited to:

a)
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Securities and Exchange Commission (SEC),

Department of Finance (DOF);

Local Government Units (LGUs);

Department of Environment and Natural Resources (DENR);
Department of Energy (DOE);

National Water Resources Board (NWRB);

Department of Agrarian Reform (DAR);

National Commission on Indigenous Peoples (NCIP);
Civil Aviation Authority of the Philippines (CAAP);
Department of Labor and Employment (DOLE);
Department of Trade and Industry (DT!);

Union of Local Authorities of the Philippines (ULAP); and
Energy Regulatory Commission (ERC).

SECTION 4. Definition of Terms. — As used in this Act, the following words or terms shall have the

following meaning, unless provided otherwise:

b)

©)

d)

e)

Virtual One Stop Shop — refers to an online system that allows the single submission
and synchronous processing of all required data and information, and provides a single

decision-making portal for the approval of new power generation projects;

Government Agency ~ refers to the agency of the government as defined in Executive
Order No. 292 otherwise known as the “Administrative Code of 1987”;

Joint Congressional Power Commission (JCPC) ~ refers to the Commission created
under Republic Act No, 9136;

Permitting Process ~ refers to the comprehensive procedure undertaken in order to put

up a power generation project which includes but is not limited to the registration of a
corporation, acquisition of an operating contract, and construction of a power plant as
well as all the required documenary requirements, taxes, and fees from all government

agencies involved in such procedure;

CHAPTER IL


‘VIRTUAL ONE STOP SHOP

SECTION 5. Creation and Establishment. — A Virtual One Stop Shop (VOSS) is hereby established
under the control and supervision of the DOE.

SECTION 6. Characteristics of the Virtual One Stop Shop. — The VOSS shall have the following

characteristics:

a, Recognizes the legal effect, validity, and enforceability of electronic documents submitted for
applications of power generation projects;

b. Utilizes an online payment system for all fees and taxes imposed for applications of power
generation projects;

c. Provides a secure and accessible paperless processing system for all power generation developers
to:

i, Be informed of all electronic documentary requirements from all concerned government
agencies, and the corresponding fees and taxes and permitting process for each kind of
power generation project,

ii, Prepare, submit, process, and receive actions on all submitted electronic documentary
requirements,

iii, Monitor and inquire of the status of on-going applications for power generation projects,
and in relation to this, ascertain the agency, office, bureau, and individual tasked with
acting on a submitted electronic document and the action or inaction on it,

iv. Calculate, pay, and settle all appropriate fees and taxes electronically, and

v.  Ventilate complaints concerning inaction on submitted electronic documents;

d. Provides a secure and accessible system for all government agencies involved in the permitting
process of power generation projects to interoperate with respect but not limited to:

i. A unified permitting process,

ii, _ Uniform templates for electronic documentary requirements,

iii. | Compliance with mandated processing time as stated in each agency’s citizen’s charter or
as imposed by the Inter-Agency Technical Working Group of the VOSS,

iv. Updating and monitoring of all electronic documentary requirements for approval and
clearing, and

v. Determining which agency, office, and bureau an on-going application is in, and its status
there;

¢. Operates as a 100% virtual storage and rules driven system built as an integrated shared service
of government ayencies involved in the permitting process of power generation projects: and

£ Comprises of a technology platform and an operations management software platform for

government agencies involved in the permitting process of power generation projects to build

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their defined processes and forms within a strict timeframe using published standards: Provided,

‘That the entire system remains under DOE’s control and supervision.

SECTION 7. Inter-Agency Technical Working Group of the VOSS. ~ The Inter-Agency Technical
Working Group of the VOSS (VOSS IATWG) will be comprised of one (1) representative from every
government agency involved in the permitting process of power generation projects: Provided, That
LGUs shall be shall be represented by ULAP. Each representative must be knowledgeable in the
represented agency’s role, requirements, fees and taxes, and internal processes with respect to power
generation projects, and must be authorized to make representations for their respective agencies. The
VOSS IATWG will be chaired by the DOE.

SECTION 8. Dutiees and Responsibilities of the VOSS IATWG. ~ The VOSS IATWG is tasked with:

a. Creating a detailed process flow of the permitting process for each kind of power generation
project: Provided, That the detailed process flow should reflect, among others:
i, Documentary requirements, and fees and taxes from each agency, and
ii, Internal process flow which includes the offices the documents pass through, the
individuals who approve them, and the maximum number of days to process these
documents as stated in the citizen’s charter or as imposed by the VOSS [ATWG;
b. Streamlining the detailed process flow mentioned above by:
i Agreeing on and creating unified forms of electronic documents to replace existing
documentary requirements,
ii, Removing duplications and redundancies in required documents, and
iii, Creating a simplified internal process flow within each agency such that applications with
complete electronic documents and settled fees and taxes can be acted upon within fifteen
(15) working days: Provided, That for applications with the National Commission on
Indigenous Peoples and LGUs, the maximum time is thirty (30) working days;

¢, Reviewing the maximum number of days to process documentary requirements as stated in each

government agency’s citizen’s charter, and, should it see fit, imposing the maximum allowable
number of days for processing in each government agency;

d. Ensuring the linkage of an online payment system to the streamlined process flow;

e. Developing the terms of reference for the VOSS developer which will be chosen through public
bidding under DOE’s Bids and Awards Committee;

f Determining a reasonable processing fee for power generation developers who use the VOSS;

g Meeting regularly, as determined by the DOE, until the operationalization of the VOSS which
shall not be later than one (1) year from the effectivity of this Act;

h. Gathering bi-annually upon the operationalization of the VOSS to, among others,

i. Monitor and assess the performance of the VOSS,


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ii, _ Determine congestion points, if any, in the existing system, and mechanisms to address
them,
iii, Resolve complaints from government personnel and power generation developers who
use the system, and
iv. Convey information, if any, of the agency’s updated requirements and internal processes
which make the current system more efficient, and
v. Prepare the annual report to the JCPC.

SECTION 9. Duties and Responsibilities of the Department of Energy. — The VOSS will be housed
in, and will be under the control and supervision of the Department of Energy. Towards this end, DOE

shall:

Determine all government agencies involved in the permitting process of power generation
projects;

Convene the VOSS IATWG within two (2) months from the effectivity of this Act;

Review and approve all acts of the VOSS IATWG;

Prioritize the bidding out of the contract for the VOSS developer;

Invest in the necessary infrastructure to maintain and operate the VOSS, such infrastructure to
include but is not limited to a virtual storage public data center and Quality of Service of the
Voss;

Equip DOE personnel to maintain and operate the VOSS;

Provide the necessary training to all government agencies involved in the VOSS; and

When deemed necessary, upon consultation with the VOSS IATWG, update the hardware and
software of the VOSS.

SECTION 10. Duties and Responsibilities of Government Agencies. — All government agencies

involved in the permitting process of power generation projects shall:

a.

b.

Actively participate in the VOSS IATWG;

Cooperate and co-labor with the DOE and other government agencies towards the immediate
operationalization of the VOSS;

Continually review internal process flows to increase efficiency and reduce processing time; and
Assign a person in charge of managing the agency’s VOSS account to ensure proper monitoring
and updating of electronic documents before the said agency.

CHAPTER IL
PROHIBITED ACTS AND PENALTIES


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SECTION 11. Administrative Offenses. - The following acts, when committed by a government

official and/or employee, shall be considered administrative offenses:

a, Willful refusal to participate in the VOSS;

b. Willful acts which delay the operationalization of the VOSS; and

c. Failure to comply with the mandated processing time of applications for Power Generation
Projects as provided in an agency’s citizen’s charter or as imposed by the VOSS IATWG;

SECTION 12.
generation developer shall be divulged or released to anyone other than an authorized person or agency

“onfidentiality. ~ No information or any aspect of a document submitted by any power

SECTION 13. Penalties. - Any person found guilty of the act stated in Sec. 11 (a), on the first offense
shall be suspended from service for six (6) months and one (1) day to one (1) year without pay, and on
the second offense shall be dismissed from service and shall be perpetually disqualified from re-

employment in any government agency or instrumentality.

Any person found guilty of the act stated in Sec. 11 (b), on the first offense shall be suspended
from service for six (6) months and one (1) day to one (1) year without pay, and on the second offense
shall be dismissed from service and shall be perpetually disqualified from re-employment in any

government agency or instrumentality.

Any person found guilty of the act stated in Sec. 11 (c), on the first offense shall be reprimanded,
on the second offense shall be suspended from service for one (1) to thirty (30) days, and on the third
offense shall be dismissed from service and shall be perpetually disqualified from re-employment in any

government ageney or instrumentality.

Any person found guilty of the act enumerated in Sec. 12, on the first offense shall be suspended
from service for six (6) months and one (1) day to one (1) year without pay, and on the second offense
shall be dismissed from service and shall be perpetually disqualified from re-employment in any

government agency or instrumentality.

CHAPTER IV
GENERAL PROVISIONS.

SECTION 13. Appropriations. — The sum Fifty Million Pesos (Php 50,000,000.00) for the initial
implementation of this Act shall be taken from the current appropriations of the DOE. Thereafter, the
funds necessary to carry out the provisions of this Act shall be included in the annual General

Appropriations Act.


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SECTION 14. Oversight Committee. — Upon the effectivity of this Act, the JCPC established under
Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 shall exercise oversight

powers over the implementation of this Act.

SECTION 15. Reportorial Requirements. — The DOE shall take the necessary measures to ensure that
the provisions of this Act are properly implemented and should submit annual reports on the program
implementation and fund utilization to the JCPC.

SECTION 16. Evaluation. — Within five (5) years after the effectivity of this Act, the JCPC shall
conduct a systematic evaluation of the accomplishments and impact of this Act for purposes of

determining remedial legislation.

SECTION 17. Separability Clause. If for any reason, any provision of this Act is declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby shall
continue to be in full force and in effect.

SECTION 18, Repealing Clause. ~ All laws, decrees, orders, rules and regulations or parts thereof
which are inconsisten with or contrary to the provisions of this Act are hereby repealed, amended or
modified accordingly.

SECTION 19. Effectivity. — This Act shall take effect fifteen (15) days after its publication in at least

two (2) national newspapers of general circulation.

Approved.