NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES \\,
3177

House Bill No.

Introduced by Representative Ralph G. Recto

AN ACT

ACCELERATING THE COUNTRY’S TOTAL ELECTRIFICATION OF
HOUSEHOLDS, PROVIDING FOR A RELIABLE AND EFFICIENT SOLAR
ENERGY SYSTEM TO PUBLIC SCHOOLS, ALLOCATING FOR THE PURPOSE
THE PROCEEDS FROM THE NET NATIONAL GOVERNMENT SHARE FROM THE
MALAMPAYA NATURAL GAS PROJECT AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Energy security is a crucial factor in achieving economic development of the
country. The Philippine government is hard-pressed to fulfill its commitments to de-
carbonize the energy industry under the 450 Scenario’, attain energy independence,
pursue 100% electrification in the entire Philippines, as well as improve the teaching
and learning conditions in public schools.

As of 2020, out of the estimated total household population of 22.98 million,
there are/still 2.12 million households with no access to electricity.” A total of 1,635
schools out of the 2,414 schools are still unenergized. In addition, 39,335 schools still
need to upgrade electrical connections.’ Lack of electricity in public schools, therefore,
creates considerable obstacles towards digital literacy because the students have no

access to, computers and other digital equipment.

ional Finergy Ageney World Energy Outlook 450 Scenario
38" Status Report on EPIRA Implementation as of April 2021

> hutps:/authdocs deped gov.plVwp-contenVuploads/202 /09/FiNAL.-|-Solar-and-Electrfication-Prosram-for-Schools-
1092 1120-202] 0908 pa (Accessed 19 June 2022)

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Solar Energy is the most abundant renewable energy (RE) resource that can be
installed to generate power at a faster rate than fossil fuel-based power plants. Solar
energy systems also generate substantial savings versus fossil-fueled power plants
with high transport and long distance hauling costs for their feed stocks.

This proposed measure seeks to mandate the Department of Energy (DOE) in
coordination with the National Electrification Administration (NEA) and National Power
Corporation (NPC) to provide electric services in identified unelectrified households.
Moreover, the Department of Public Works and Highways (DPWH) in coordination with
the Department of Education (DepEd) and the DOE is mandated to construct solar
energy systems in identified unelectrified public schools.

The funding of this measure shall be charged against the net national
government share from the Malampaya Fund, with a projected revenue of
approximately P152 billion* from 2019 to 2023, after deducting the P208 billion
allocated for the payment of stranded contract costs and stranded debts pursuant to
Republic Act No. 11321 or the Murang Kuryente Act.

The bill proposes to allocate 90% of the Malampaya Fund for the electrification
of identified unelectrified households in the far-flung areas of the country while the
remaining 10% of the Fund shall be for the installation of solar energy systems in
public schools.

This bill would provide the impetus for the country to achieve 100%
electrification in all missionary areas, support the DepEd’s mission to spread digital
literacy and equal opportunity in education around the country, and reach the
government's target RE utilization of 15,304 MW in 2030, from the current 5,438 MW
RE utilization.

The bill also mandates the DOE in coordination with the NPC, NEA, DPWH and
the DepEd to annually release and update the list of unelectrified households and
public schools. Furthermore, to ensure transparency, the bill also mandates that the

4 PSALM Report on Projected Revenues from SC 38 Malampaya Gas to Power Project dated December 2018
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allocation of the Malampaya Fund for the purpose should be clearly provided for in the
General Appropriations Act.

In view of the foregoing, the approval of the bil estly sought.

/mjma


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NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

3177

House Bill No.

Introduced by Representative Ralph G. Recto

AN ACT

ACCELERATING THE COUNTRY’S TOTAL ELECTRIFICATION OF
HOUSEHOLDS AND PROVIDING FOR A RELIABLE AND EFFICIENT SOLAR
ENERGY SYSTEM TO PUBLIC SCHOOLS, ALLOCATING FOR THE PURPOSE
THE PROCEEDS FROM THE NET NATIONAL GOVERNMENT SHARE FROM THE
MALAMPAYA NATURAL GAS PROJECT AND FOR OTHER PURPOSES

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

Section 1. Short Title. - This Act shall be known as the “Total Electrification in
Households and Public Schools Act”.

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
accelerate total electrification, increase access to sustainable energy, improve
efficiency in the use of energy, spread literacy and equal opportunity in education
around the country, and mandate the development and utilization of renewable
energy resources. Towards this end, the State shall establish the infrastructure and
mechanisms to ensure energy-sufficiency in unelectrified households and public
schools.

Sec. 3. Coverage. - This Act shall provide a framework for the accelerated
electrification in unelectrified households and establishment of solar energy systems
in public schools.

Sec. 4. Definition of Terms. — For purposes of this Act, the following terms shall
be defined as stated below:

a) End-user - refers to any person or entity requiring the supply and
delivery of electricity for its own use;

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b) Grid- refers to the high-voltage backbone system of interconnected
transmission lines, substations and related facilities;

©) Joint Congressional Energy Commission (JCEC) — refers to the
Congressional Commission constituted under Section 62 of Republic
Act No. 9136, otherwise known as the “Electric Power Industry
Reform Act of 2001”, as amended by the Republic Act No. 11285,
otherwise known as the “Energy Efficiency and Conservation Act”;

d) Malampaya Natural Gas Project — refers to Service Contract 38 in
offshore Northwest Palawan;

e) Malampaya Fund — refers to the government share from the net
production proceeds of Service Contract 38 or the Malampaya Natural
Gas Project pursuant to Presidential Decree No. 87, otherwise known
as The Oil Exploration and Development Act of 1972. This
government share forms part of a Special Account in the General
Fund used to finance energy resource development and exploitation
programs pursuant to Presidential Decree No. 910, otherwise known
as “Creating an Energy Development Board, Defining Its Powers and
Functions, Providing Funds, Therefor, and for Other Purposes”;

f) Missionary electrification ~ as defined in Section 70 of Republic Act
No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001
and its Implementing Rules and Regulations, covers all off-grid areas
which are not connected to the main grids of Luzon, Visayas, and
Mindanao, and remote and unviable areas which are not connected
to the distribution grid;

9) National Electrification Administration (NEA) — refers to the
government agency created under Presidential Decree No. 269, as
amended;

h) National Power Corporation (NPC) - refers to the government
corporation created under Republic Act No. 6395 and mandated in
Section 70 of Republic Act No. 9136 to perform missionary
electrification function through its Small Power Utilities Group

(SPUG);


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i) Net production proceeds — refer to the balance of gross proceeds
from Service Contract 38 after deducting the Filipino Participation
Incentive, if any, and all operating expenses pursuant to Section 8
(1) of Presidential Decree No. 87, the Oil Exploration and
Development Act of 1972;

j) Net government share ~ refers to the sixty percent (60%) share of
the national government from the net production proceeds of Service
Contract 38 pursuant to Presidential Decree No. 87, the Oil
Exploration and Development Act of 1972 after the deductions
provided by Presidential Decree No. 910, creating the Energy
Development Board;

k

Net national government share - refers to the share of the national
government from the net government share after the deduction from
the net government share of the local government share pursuant to
Section 290 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, as amended;
1) Small Power Utilities Group (SPUG) - refers to the functional unit of
NPC created to pursue missionary electrification function in
accordance with Republic Act No. 9136; and
m) Solar Energy System - refers to an energy system which converts
solar eneray into thermal or electrical energy.

Sec. 5. Electrification in Unelectrified Households and Construction of Solar
Energy Systems in Public Schools. - The National Power Corporation (NPC) and
National Electrification Administration (NEA) shall facilitate the installation of electricity
systems jin identified unelectrified households in rural areas: Provided, That the
Department of Public Works and Highways (DPWH) in coordination with the
Department of Energy (DOE) and the Department of Education (DepEd) shall construct
the solar energy systems in public schools: Provided further, That the establishment
of the said systems shall be within a period as may be determined in the Implementing
Rules and Regulations of this Act.


1 Sec. 6. General Guidelines. - For the purposes of this Act, the following are the
2 General Guidelines for the accelerated total electrification in unelectrified households
3 and installation of solar energy systems in school buildings:

4 a) Installation of electricity systems shall immediately commence to
5 supply power to identified unelectrified households and construNo.of
6 solar energy systems in public schools;

T b) The Department of Finance (DOF) shall apply the appropriate
8 provisions of Chapter VII General Incentives of Republic Act No.
9 9513 or the Renewable Energy Act of 2008 to the solar energy
10 systems to be established and constructed;

u ©) The DOE in coordination with NEA and NPC shall develop a
12 comprehensive database to monitor the status of4os tonification and
13 post on its website an updated list of unelectrified households on the
14 last quarter of each calendar year;

15 d) The DPWH in coordination with DepEd shall submit to Congress a
16 status report No.structed solar energy systems in public schools
7 funded under the Malampaya Fund including but not limited to
18 information as to location, scope of works, cost and implementation
19 timelines;

20 e) The DOE shall regularly coordinate with the DOF and the Department
21 of Budget and Management (DBM) to ensure consistent record-
22 keeping of disbursements from the Malampaya Fund. The DOE shall
23 make all reports available to the public through its website; and

2 a) Households and public schools shall enjoy the privileges granted to
25 qualified end-users as certified by the DOE-Renewable Energy
26 Management Bureau, as provided for in Sections 10 and 12 of
27 Republic Act No. 9513.

28 Sec. 7. Congressional Oversight. - Upon the effectivity of this AcNo. Joint

29 Congressional Energy Commission shall exercise oversight powers over its
30 implementation.

31 Sec. 8. Fund Source. - The amount necessary for the implementation of this
32 Act shall be charged against any remaining and future proceeds of the net national

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government share from the Malampaya Fund under the Special Account in the General
Fund after deducting the Two Hundred Eight Billion Pesos (P208,000,000,000)
allocated for the payment of stranded contract costs and strandeo.debts pursuant to
Republic Act No. 11321 or the Murang Kuryente Act: Provided, That ninety percent
(90%) of the Fund shall be allocated for the electrification of identified unelectrified
households while the remaining ten percent (10%) of the Fund shall be for the
installation of solar energy systems in public schools: Provided further, That annual
allocations for the implementation of this Act shall be included in the annual General
Appropriations Act.

Sec. 9. Implementing Rules and Regulations. - Within sixty (60) days from the
effectivity of this Act, the DOE, DPWH, DOF and the DBM, in consultation with the
appropriate government agencies mentioned herein, shall promulgate the necessary
implementing rules and regulations for the proper disposition of the said funds and
the effective implementation of this Act.

Sec. 10. Separability Clause. - If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall
remain in force and effect.

Sec. 11. Amendatory Clause. - Section 8 of Presidential Decree No. 910,
creating the Energy Development Board is hereby amended insofar as the uses of the
Malampaya Fund is concerned.

Sec. 12. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, rule or regulation inconsistent with the provisions of this
‘Act is hereby repealed, amended or modified accordingly.

Sec. 13. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in a newspaper of general circulation.

Approved,