Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1291

INTRODUCED BY REPRESENTATIVE KIMI S. COJUANGCO

Explanatory Note

This bill was originally authored and sponsored by the former Representative
of the 5th District of Pangasinan, the honorable Mark O. Cojuangco, as House
Bill No. 4631 but which subsequently evolved into House Bill No. 6300 after it
passed the approval of the Committee on Energy and referred to the Plenary
for second reading.

‘The proposed measure had to do with the validation and rehabilitation of our
fully paid for, but decommissioned Bataan Nuclear Power Plant (BNPP). The
BNPP, our BNPP, a nationally owned asset which has cost us $2.118 Billion
US Dollars, and for which we regularly allocate an annual expenditure (budget)
for maintenance in order to preserve this serviceable and tangible material
asset which is still in excellent condition.

To rehash all that has been said in the archived 14th Congress's House Bill
No. 4631 and House Bill No. 6300 would be redundant and in my opinion, a
waste of time.

Let it be made therefore that the explanatory note of then House Bill No. 4631
with amendments is reused or adopted as part of this explanatory note for this
new pro-BNPP bill. It is trust that it will now give the sense and the purpose of
this new piece of legislation, as well as incorporate the sensitivities and
compromises which were arrived at during the lengthy discussions of the
merits thereof.

As well, the bill proper as I am submitting it contains the distilled essence of
what was discussed during the period of interpellation and debate during the
14h Congress, from the then author's point of view. This proposed measure
incorporates adjustments to what he then perceived were the sensitivities of
the discussions as brought forth by those with a dissenting point of view.

The body of this new bill is now more reflective of former House Bill No. 6300
with amendments based on the discussions on record and the previous
author's sense of these discussions, rather than that of House Bill No. 4631.

1


It is submitted that the bill is now much more straightforward and captures
the sentiments and concerns of a broader range of the stakeholders and of our
people.

It is submitted that the national debate by our society on the nuclear power
option is timely in view of an impending power crisis which may be upon us in
two (2) or three (3) years, by 2012 or 2013, and which has already manifested
its ugly self during the summer of the current year.

It is submitted that such a power crisis would put a cap on any economic
development and growth which we may be having due to our new found
political stability, confidence and positive outlook, if not outright sabotaging
our gains and setting us back in our struggle for prosperity.

Such an occurrence would indeed be a tragedy, because if we act in a timely
and decisive manner, none of these woeful events will have to happen at all,
and in fact the positive would be boosted and multiplied.

In this age of global warming, climate change, energy shortages and soaring
energy prices, the only two mainstream alternatives and solutions available to
us as sources of energy are; fossil fuels and nuclear energy. The rest, in my
humble opinion, are all peripheral and irrelevant to our national Philippine
context.

The world is inexorably headed in this direction. Do we intend to be last again?
The choice is ours, the decision is ours. Let's act before it is too late.

I therefore urge all the members of this august body, to study this matter well
so that our beloved House may debate the issue intelligently and sans
emotion, as our people will be watching and they will be learning and
benefitting from our discussion and trade of ideas. Let the Members endeavor
to bring this discussion to a higher level. I am confident that we will arrive at
what I am sure is best for the future of our people.

I therefore urgently seek the decisive and steadfast support of the honorable
Members for the battle that lies ahead.



Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

1291
HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE KIMI S. COSUANGCO

AN ACT

MANDATING AN IMMEDIATE VALIDATION PROCESS WHICH SATISFIES
INTERNATIONALLY ACCEPTED NUCLEAR POWER INDUSTRY NORMS TO
DETERMINE THE BATAAN NUCLEAR POWER PLANT'S OPERABILITY
CULMINATING IN EITHER THE IMMEDIATE REHABILITATION,
CERTIFICATION AND COMMERCIAL OPERATION OR, THE IMMEDIATE
PERMANENT CLOSURE AND SALVAGE VALUE RECOVERY, OF THE
BATAAN NUCLEAR POWER PLANT, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES.

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

SECTION 1. Title - This Act shall be known as the “Bataan Nuclear Power
Plant Act of 2010.”

SEC. 2. Declaration of Policy - Section 16, Article II 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.” Section 8, Article II further provides that: “The
Philippines, consistent with the national interest, adopts and pursues a policy
of freedom from nuclear weapons in its territory.”

In pursuance of Section 16, and that there being no bar against the use
of nuclear energy for power generation in accordance with Section 8, Article II
of the Constitution, it is hereby declared the policy of the State to develop
nuclear energy - which has been proven by world experience to be reliable,
sustainable, efficient, environment-friendly and cost-effective - as a distinct and
substantial part of the country’s energy mix. It is also a tool to address the
country’s electric generating capacity shortfall which is projected to happen in
the year 2012, and the worsening problem of global warming due to carbon
emissions, and to bring about a cleaner environment by eliminating the spread
of heavy metals, toxic substances, and radioactive elements which occur
through the continued use of the conventional and the traditional fossil fuel
power generating technologies.


Nuclear energy will serve as proactive action against the possible
imposition of an international tax and sanctions against the use of carbon-
based fuels, resulting from a public backlash against the supposed global
warming and climate change.

Nuclear energy will serve as an alternative energy source which is
necessary for the ushering in of a “clean” hydrogen or electric transportation
economy.

SEC. 3. Mandate and Authority to Validate. - The provisions of
existing laws to the contrary notwithstanding, the National Power Corporation
(NAPOCOR) is hereby mandated and authorized to undertake the immediate
validation of the Bataan Nuclear Power Plant (BNPP). This vested mandate and
authority shall be under the direct supervision and control of the Department
of Energy (DOE).

For purposes of this Act, validation is defined as a two stage process to
ascertain as to whether or not the Bataan Nuclear Power Plant (BNPP) can in
fact be made, if it is not already so, mechanically, structurally and
electronically in conformity with its original specifications, and/or the
functional equivalent of its three sister plants existing and operating in the
world today, most especially the KORI II Nuclear Power Plant in the Republic
of Korea, whose physical example will serve as the preferred baseline model
guiding the validation of the BNPP.

The first stage of validation is to ascertain if the Bataan Nuclear Power
Plant can be brought to the required specification for certification and
operation within the allocated One Billion US Dollars (US $1 ,000,000,000.00)
maximum expenditure allowed by this Act, resulting in a ‘GO" or ‘NO GO"
finding. It involves a step by step review of the original plans and specifications,
build documentation, inspection, re-inspection and comparison with standards
such as those of the operating KORI II Nuclear Power Plant.

The second stage may come into force upon a “GO” result of the first stage.
It involves the immediate rehabilitation, repair, reconstruction and other
activities including any and all necessary works guided by the step by step
review process mandated in the first stage, culminating in a “hot function test”
for a duration equal to one and a half (1%) times internationally recognized
standards and resulting in the receipt of the required operating certificates
from the regulatory authority. Only thereafter may the facility be loaded with
nuclear fuel and the plant activated.

The second stage may also come into force upon a “NO GO” result of the
first stage. It involves a declaration of permanent BNPP closure and the
disposal through public bidding of all remaining BNPP assets within one year


from the date of said declaration. Or, at the minimum, the cessation of public
funding for the further maintenance of BNPP.

SEC. 4. Mandate and Authority to Rehabilitate, Commission and
Operate. - The provisions of existing laws to the contrary notwithstanding, the
National Power Corporation (NAPOCOR) after a “GO” finding pursuant to
Section 3 of this Act, is hereby mandated and authorized to undertake the
immediate rehabilitation, certification, commissioning and commercial
operation of the Bataan Nuclear Power Plant (BNPP). This vested mandate and
authority shall be under the direct supervision and control of the Department
of Energy (DOE). The NAPOCOR may spin-off portions of its organization
which are presently overseeing the preservation and maintenance of BNPP, its
engineering, technical, and administrative staff to form a government-owned
corporation to further hasten and streamline the rehabilitation, commissioning
process and operation of the BNPP. The Philippine Nuclear Research Institute
(PNRI) mandated to oversee the licensing and regulation of nuclear facilities
shall continue to regulate the rehabilitation, commissioning and operation of
the BNPP as mandated by law.

For purposes of the BNPP rehabilitation plan, the physical example of the
KORI II Nuclear Power Plant, aside from and in further preference to it’s
sister plants; Angra I and KRSKO, will serve as the preferred baseline model.

For purposes of the BNPP commercial operation, the physical example of
the KORI II Nuclear Power Plant will serve as the preferred baseline model as
to BNPP's performance both technically and financially.

SEC. 5. Mandate and Authority to Declare the Permanent Closure
and to effect the Scrapping of BNPP - The provisions of existing laws to the
contrary notwithstanding, the National Power Corporation (NAPOCOR)/the
spun-off entity, after a “NO GO" finding pursuant to Section 3 of this Act, is
hereby mandated and authorized to declare the permanent closure of the
Bataan Nuclear Power Plant (BNPP). This vested mandate and authority shall
be under the direct supervision and control of the Department of Energy (DOE).

Within one year after the declaration of permanent closure, the
NAPOCOR/the spun-off entity is mandated to have effected the scrapping and
salvage value recovery of BNPP. Under no circumstances may these disposed
assets be used for the operation of another nuclear power plant on Philippine
soil.

At the very least, in the interregnum between declaration and the
implementation of the above provision, the immediate cessation of public
funding for the further maintenance of BNPP is mandated.


SEC. 6. Warranty Over Mechanical and Civil Portions Including the
Nuclear Steam Supply System and Balance of Plant Equipment. - The
NAPOCOR/the spun-off entity shall, after a “GO” finding pursuant to Section 3
of this Act and during the subsequent rehabilitation and certification, warrant
that the Mechanical and Civil Portions, including the Balance of Plant
Equipment but most especially the Nuclear Steam Supply System of the BNPP
conforms with internationally recognized nuclear power industry standards to
which applies the BNPP’s series of plants: Provided, That the subsequent
applicable international operating guideline revisions covering the series or
model of nuclear plants to which the BNPP belongs are likewise complied with.

For purposes of the warranty over mechanical and civil portions, the
physical example of the KORI II Nuclear Power Plant, aside from and in
further preference to it’s sister plants; Angra I and KRSKO, will serve as the
preferred baseline model or reference.

Sec. 7. Warranty Over Instrumentation and Control (I AND C)
Equipment. - After a “GO” finding pursuant to Section 3 of this Act and during
the subsequent rehabilitation and certification, the existing main instrument
and control equipment of the BNPP may be retained in whole or in part as
needed. The NAPOCOR/the spun-off entity shall also ensure that the
Instrumentation and Control (I and C) portions, including electronic controls,
sensors, and data communication systems, such as non-mechanical servo
drives and actuators are modernized according to the technology currently
employed by existing nuclear power plants operating in the world. Digital
systems may likewise be employed similar to the upgrades being implemented
by other existing nuclear power plants implementing improvements of their I
and C systems.

Such upgrades in the I and C equipment shall, as may be applicable,
include all revisions and guidelines pertinent to the Three Mile Island incident
and Chernobyl accident.

For purposes of the warranty over instrumentation and control equipment,
the physical example of the KORI II Nuclear Power Plant, aside from and in
further preference to it’s sister plants; Angra I and KRSKO, will serve as the
preferred baseline model or reference.

Nothing in this section shall be interpreted as giving the NAPOCOR the
blanket authority to implement, apply or institute physical and/or design
changes or other operating guidelines not otherwise proven in the running
sister plants of BNPP, namely; Angra I or KRSKO or KORI II, with preference for
KORI II as the baseline model or reference.

SEC. 8. Hiring of Technical Personnel. - Upon a “GO” finding of the
BNPP, the NAPOCOR/the spun-off entity shall recruit, hire, and engage the
services of the skilled manpower for the management and operation of all the


technical aspects of the plant. For this purpose, the technical personnel
involved in and possessing institutional memory on the construction and
maintenance of the BNPP shall be given priority and be deemed acceptable,
subject to requalification, but regardless of their age for those that will be
involved in the rehabilitation and re-commissioning process only.

Non-resident aliens who shall be employed as technical personnel by the
BNPP must first secure an employment permit from the Department of Labor
and Employment: Provided, that such permit shall be issued only upon
determination of the non-availability of persons in the Philippines who are
competent, able and willing at the time of the application to perform the
services of the alien personnel.

The KORI II Nuclear Power Plant Manpower Plantilla shall be used as the
preferred baseline model in determining the manpower complement of the
BNPP.

SEC. 9. Development of Local Skilled Manpower. - The NAPOCOR/the
spun-off entity shall implement a program for training, cultivating and
developing a pool of local skilled manpower necessary for the management and
operation of all the technical aspects of the plant and for a future nuclear
power industry including a nuclear power manpower export industry.

Towards this end, the University of the Philippines is hereby mandated to
augment its college of conventional power engineering by creating a nuclear
power engineering department which shall be considered a higher level of
academic attainment. The courses will only be offered for enrollment to the top
twenty percent (20%) of engineering graduates which include power,
mechanical, civil, electrical and other engineering fields which are applicable to
the nuclear power industry, or the equivalent academic prerequisites as may
be determined by the Dean of the College of Engineering of the University of the
Philippines in consultation with the NAPOCOR/the spun-off entity.

A separate course may be offered by the University of the Philippines
which will specialize in nuclear power industry regulation. Again, with the
courses only offered for enrollment to the top twenty percent (20%) of
engineering graduates which include power, mechanical, civil, electrical and
other engineering fields which are applicable to the nuclear power industry, or
the equivalent academic prerequisites as may be determined by the Dean of
the College of Engineering of the University of the Philippines in consultation
with the Philippine Nuclear Research Institute.

Other state universities and colleges are hereby encouraged to offer
courses in nuclear engineering and nuclear plant operation including nuclear
power plant regulation.


As a jump starter for the creation of continuing nuclear power expertise, a
separate budget for hands-on training, simulator training and further academic
training abroad of operating personnel and/or outstanding nuclear engineering
graduates shall be allocated, chargeable against any excess in the One Billion
US Dollar BNPP rehabilitation cost ceiling as mandated by this Act. This may
also include the establishment of simulator training facilities which shall be
located at a distinct facility which include adequate land area ( at least two
hectares) on the grounds of the University of the Philippines, to eventually
emulate the functions of KHNP Nuclear Power Education Institute of the
Republic of Korea.

SEC. 10. Compensation; Salary Rates. - The NAPOCOR/the spun-off
entity is hereby authorized to pay internationally competitive rates for all
personnel especially those working within battery limits or controlled areas
within the nuclear facility: Provided, That the manpower complement shall not
exceed the average number of personnel utilized per unit of the same type of
plant in other countries.

As used in this Act, battery limits shall refer to the controlled area as
defined in nuclear facilities.

Sec. 11. Tenure of Employment. - For purposes of this Act, the
provisions of the Civil Service rules and regulations shall apply to personnel
recruited under Section 10 of this Act: Provided, That single act of proven
negligence, demonstrated incompetence or irresponsibility shall be ground for
termination: Provided, further, that all personnel should pass the proficiency
examination which shall be conducted every two years as a condition for
continued employment.

The proficiency testing for KORI II personnel shall be used as the preferred
guideline in establishing the proficiency testing standards for BNPP.

Should it be determined that these KORI II proficiency testing guidelines
provide for a more frequent testing interval than the two year interval as
provided above, then the more severe condition shall apply.

SEC. 12. Allocations for Disposal of Spent Fuel and Decommissioning
of the BNPP including Penalty. - In the operation of the plant, the
NAPOCOR/the spun-off entity shall allocate a sinking fund to cover the
expenses for the future decommissioning of the plant at the end of its
operational life. NAPOCOR/the spun-off entity shall also allocate for the costs
of radioactive waste disposal and spent fuel disposal program of BNPP.

Upon collection of the fees for its product namely the generated and sold
electricity, the BNPP shall forthwith (on a daily basis) and without exceptions
turn over the said funds to the National Treasury. The said funds shall then be
converted into thirty three and one third percent (33 1/3%), thirty three and one


third percent (33 1/3%) and thirty three and one third percent (33 1/3%) mix of
U.S. Dollar, Euro and gold strictly on the subsequent working day from the
receipt of the funds. The purpose of the conversion of the funds into these
instruments of value is to ensure that the value of the total fund is not eroded ,
and is preserved for its future and exclusive use in financing the ULTIMATE
disposal (ISOLATION) of spent fuel/high level nuclear waste, plant
decommissioning, as the case may be.

The purchase of these instruments of value should be for a price which is
at the most, the average price for the relevant trading day. For gold, the
commodity exchange which shall be used is the London Bullion Market. For the
US dollar and the Euro, they are to be supplied by the Bangko Sentral ng
Pilipinas, at a price which is the average price for the total trade of the relevant
day, at the Philippine Dealing System.

‘The Bangko Sentral ng Pilipinas (BSP) together with the National Treasury
shall be responsible for the purchase of these instruments in compliance with
the above provision. Once these instruments are purchased they may not be
traded.

Disbursement and management of the fund shall be governed by the
implementing guidelines to be agreed upon and promulgated by DOE,
NAPOCOR, PNRI and the Department of Finance. The primordial responsibility
of these institutions will be to assure the non-erosion of the value of these
funds, in real terms.

Any officer and/or personnel of the Bangko Sentral ng Pilipinas or of the
National Treasury who violate the provision of this Section or of the rules and
regulations issued pursuant thereto shall, upon conviction by a competent
court, be sentenced to imprisonment for a period of not less than three years
but not more than ten years or a fine of not more than P100,000.00 or both,
upon the discretion of the court, without prejudice to such ther liabilities under
any other existing laws.

The account for the final disposition of spent fuel shall be called the “BNPP
Spent Fuel Disposal Fund."

The account for decommissioning the plant and making the then former
plant site safe at the end of BNPP’S operating or physical lifetime shall be called
the “BNPP End of Life Decommissioning Fund.”

SEC. 13. Waste Management and Disposal. - Management and disposal
of low-level and intermediate level waste similar to those generated in the
medical and industrial sector shall be handled in accordance with the
regulatory requirements of the Philippine Nuclear Research Institute. In no case
shall the BNPP Spent Fuel Disposal Fund be used to dispose of low and


intermediate level nuclear waste. As in the practice of the medical and
industrial sectors, low and intermediate level waste disposal shall be funded as
part of the BNPP’s normal operating expenses.

SEC. 14. Recovered Fissionable Materials. - Recovered fissionable
materials from spent fuel may be reused by the BNPP: Provided, that the
technology is first proven to be economically viable by a working and
commercial example. In such a case, the BNPP Spent Fuel Disposal Fund shall
NOT be utilized. Instead, the funding for such shall be treated as a separate
commercial investment, justified by an appropriate economic model and
feasibility study which indicates clear economic advantage to society, the
government and the NAPOCOR/the spun-off entity. Ten percent (10%) of the
funds emanating from Section __ may be used as capital for this purpose:
Provided, That the original capital for BNPP’s rehabilitation has been fully paid
back, and: Provided, finally that BNPP has fully paid back all of its loan
obligations relating to its rehabilitation.

SEC. 15. Definition & Extension of Operational Lifetime. - The
operational lifetime of the BNPP shall be defined as forty (40) years from the
date of its commercial operation.

Extension of the operational lifetime of the BNPP may be granted by the
PNRI: Provided, That the duration of the extended operational lifetime shall not
exceed twenty (20) years per extension.

SEC. 16. Emergency Preparedness and Response Plan. - The
NAPOCOR/the spun-off entity shall, preferably within two years but in no case
later that one year before the BNPP is put into operation, present a draft
emergency preparedness and response plan in accordance with the regulatory
requirements of PNRI. It shall use the original "BNPP emergency and
preparedness response plan” as an initial working document culminating in a
plan which is comparable in scope to that which is in place either at KORI II, or
KRSKO or, Angra I nuclear power plants .

SEC. 17. Cost of Rehabilitation. - The NAPOCOR/the spun-off entity
shall endeavor to complete the rehabilitation of the BNPP at a cost that is
substantially below the cost of a greenfield and brand new coal-fired power
plant equipped with sulfur scrubbing equipment, of equivalent power generating
capacity. In no case shall the rehabilitation cost exceed One Billion US Dollars
(US$1,000,000,000.00).

SEC. 18. Commercial Mode of Commissioning. - The President, upon
the recommendation of the Secretary of Energy, is hereby given the authority to
determine and decide the commercial mode of commissioning the BNPP in
accordance with the provisions of this Act. Such mode may be by
administration, or by contract.



SEC. 19. Commercial Mode of Operation. - The President, upon the
recommendation of the Secretary of Energy, is hereby given the authority to
determine and decide the final mode of commercial plant operation. The
President will endeavor to assure that the Filipino people will be the ultimate
beneficiaries of the economic cost advantages offered by nuclear power
generation.

In the event that the President determines that it is more publicly
acceptable or more in the public interest to involve private sector participation
in the operation of the plant, the maximum limit for such participation shall be
twenty percent (20%) of the total beneficial ownership. Such private ownership
must be acquired through a transparent public bidding process.

SEC. 20. Compliance with Environmental Regulations. - As far as the
environment is concerned, all aspects nuclear shall be subject to the PNRI
rulings and standards. With respect to all other non-radiological emissions or
hazards, the DENR shall exercise its authority as mandated by law.

SEC. 21. Benefits to Host Communities. - The amount of PhP 0.01/ Kwh
shall be given as a direct benefit to the province, city, or municipality especially
the community and people in the direct proximity of the plant, and equitable
preferential benefit to the region that hosts the nuclear power plant: Provided,
That the benefits to host communities under Rep. Act No. 9136, also known as
the EPIRA Law, are not duplicated nor diminished.

The Municipality of Morong, Bataan wherein the plant is physically
located will be supplied annually with electric power produced by BNPP for the
duration of BNPP’s operating lifetime for up to four times its 2009 annual
electric consumption at a rate of Four US Cent (US¢.04) in equivalent peso per
kilowatt hour (Kwh) computed at the prevailing exchange rate. Or, the
Municipality of Morong, Bataan will annually receive power produced by
BNPP for the duration of BNPP’s operating lifetime, in an amount of kilowatt
hours which is up to 200% of Morong’s 2009 total electric consumption. This
electric power is to be provided by BNPP free of charge. Whichever of these two
methods of computation will provide for the greater benefit to the Municipality
of Morong, such will apply.

SEC. 22. Implementing Rules and Regulations. - The Secretary of
Energy shall, in coordination with the President of the National Power
Corporation/the spun-off entity and the Director of the Philippine Nuclear
Research Institute, within ninety (90) days from the effectivity of this Act,
promulgate any additional rules and regulations for the effective implementation
of this Act.

SEC. 23. Congressional Oversight Committee. - There is hereby created
a Congressional Oversight Committee which shall be composed of Chairmen of
the Committees on Energy of the Senate and the House of Representatives and


four (4) additional members from each House to be designated by the Senate
President and the Speaker of the House of Representatives, respectively.

The Congressional Oversight Committee shall monitor and make public its
findings and any information which it may gather regarding the
implementation of this Act.

The secretariat of the oversight committee shall be drawn from the existing
secretariat personnel of the committees of the Senate and the House of
Representatives and the funding for its operations shall be taken from the
existing budget of the (concerned) committees.

SEC. 24. Appropriations. - The amount of One Hundred Million Pesos
(Php100,000,000.00) is hereby appropriated chargeable against the
appropriations of the Department of Energy under the current General
Appropriations Act and/or supplemented or augmented by the National Power
Corporation and/or the Philippine National Oil Corporation and/or the Office of
the President for the conduct and completion of validation to determine the
viability of rehabilitating, commissioning and commercially operating the
Bataan Nuclear Power Plant as a nuclear facility taking into consideration
technical, safety, economic, financial and ecological concerns.

SEC. 25. Options for Sources of Funding. - For the citizen to benefit
fully from the cost advantages of nuclear power generation, in particular the
BNPP, because it has already been paid for as of April 2007, the citizen must
maintain his ownership of BNPP.

‘The State may therefore raise the necessary equity to preserve this
ownership preferably at one hundred percent (100%) or optionally down to the
minimum of eighty percent (80%) as provided for in Sec. 19 of this Act, through
the collection of a surcharge of Php 0.15/ kwh of the total electric power sold in
the country which passes through the power transmission and distribution grid
except; from generating capacities which have qualified for incentives under
Republic Act No. 9513 or the Renewable Energy Act of 2008: Provided, that such
collection of a surcharge shall not be imposed for more than five (5) years from
the date of its initial imposition, nor should it exceed One Billion US Dollars
(US$1,000,000,000.00). The funds collected shall be reimbursed to the electric
consumers commencing immediately upon the commercial operations of the
BNPP. The time frame for such reimbursement which shall be on a monthly
basis shall not exceed four (4) years.

The state is also authorized to enter into international or domestic loan
agreements to fund the implementation of this Act: Provided, that the total
funds raised from the loan and/or the surcharge combined shall not exceed
One Billion US Dollars (US$1,000,000,000.00) net of interest and other charges.


SEC. 26. Separability Clause. - If any provision or part of this Act is
declared unconstitutional or invalid, the remaining parts or provisions not
affected shall remain in full force and effect.

SEC. 27. Repealing Clause. - All laws, decrees, executive orders, rules
and regulations, and other issuances, or any part thereof, which are
inconsistent with this Act, are hereby repealed or modified accordingly.

SEC. 28. Effectivity. - This Act shall take effect fifteen (15) days after
publication in the official gazette or in two (2) national newspapers of general
circulation.

Approved,