Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

2535
House Bill No.

Introduced by Rep. Erico Aristotle C. Aumentado

EXPLANATORY NOTE

The Science Act of 1958 created National Science Development Board (NSDB) now known
as the Department of Science and Technology (DOST). The same law created the Philippine
Atomic Energy Commission (PAEC) now known as the Philippine Nuclear Research
Institute (PNRI) to promulgate rules and regulations to ensure the safe use and application of
radioactive materials in different fields of application. This law was enacted with the
objective of protecting the public health, safety, security and the environment from potential
damage resulting from activities involving radiation and nuclear/radioactive materials. Ten
years later when the government decided to pursue the nuclear power option, the Atomic
Energy Regulatory and Liability Act of 1958 or the Republic Act 5207 was enacted to
provide the licensing and regulation of atomic energy facilities and materials, establishing the
ules on liability for nuclear damage and other purposes.

In 1987, Executive Order No. 128 was enacted reorganizing PAEC and renamed Philippine
Nuclear Research Institute (PNRI) which was placed under the Department of Science and
Technology (DOST) of the new government (Reorganizing the National Science and
Technology Authority). Up until now, the PNRI oversaw both promotional and regulatory
activities in the country. Given this dual responsibilities, there has been increasing concerns
on whether the PNRI is effective and objective in regulating all nuclear materials and
activities for peaceful purposes in the country.

On the other hand, the Center for Device Regulation, Radiation Health and
Research/CDRRHR (formerly Bureau of Health Devices and Technology/BHDT) was
created under the Food and Drug Administration (FDA) of the Department of Health (DOH)
through Republic Act No. 9711. The Radiation Health Division of the CDRRHR was
established given the following powers and functions, among others, over the use of radiation
devices to regulate the use of ionizing and non-ionizing radiation devices in medicine,
dentistry, veterinary medicine, commerce and industry, education and training, research, anti-
crime, security, household activities, and all other facilities/establishments and activities
where radiation devices are used.

The need for a separate organization, whose sole concern would be nuclear safety, security
and safeguards, separate from promotional, political and economic influences, becomes
apparent. The Philippines through the PNRI has been considering revisions to the country’s


nuclear and radiation laws. The primary purpose of these revisions would be to reflect
internationally acceptable practices and to ensure that the Philippine national legislative and
regulatory framework is consistent with the nation’s obligations under relevant international
instruments. Furthermore, it must ensure and provide an adequate basis for further
development of nuclear technology for peaceful purposes.

The proposed bill will provide a legal framework for conducting activities related to nuclear
energy and ionizing radiation in a manner which adequately protects individuals, property
and the environment. The proposed bill will address all the gaps and omissions identified in
reviewing the current legislative framework (under RA 5207) in the areas system of physical
protection, safeguards, nuclear security, nuclear/radiological emergency preparedness and
response, radioactive waste management, licensing of nuclear facilities, nuclear materials and
radioactive sources, including those in PNRI, and transport of nuclear/radioactive materials.
The proposed creation of a single regulatory body, the Philippine Nuclear Regulatory
Commission (PNRC), will ensure effective independence of the regulatory functions for
control of all sources of ionizing radiation for the safety and security of the public, and for
protection of the environment. This will harmonize with the structure in most countries
especially in the Asia-Pacific region such as China, Indonesia, South Korea, Japan, Malaysia,
Thailand, Pakistan, India, Australia, New Zealand, Singapore, and Vietnam. The proposed
law will modernize the current laws governing the control of nuclear, radioactive, ionizing
radiation sources. It will ensure consistency with the nation’s obligations under relevant
international instruments.

Under the FDA Law or “Food and Drug Administration Act of 2009”, CDRRHR’s mandate
is only limited to the regulation of devices emitting ionizing and non-ionizing radiation in
both non-medical and medical applications. It will not address the elements included in the
proposed bill such the issues on nuclear security, physical protection, radioactive waste
management, among others.

The PNRI proposes for the creation of a single nuclear regulatory body with effective
independence - the Philippine Nuclear Regulatory Commission (PNRC) under the
Department of Science and Technology (DOST). The proposed bill provides the most
appropriate and effective approach for the Philippines to modernize and strengthen its legal
framework for nuclear safety, security and safeguards. The proposed legislation will provide
for the establishment of a regulatory framework that will decide on issues affecting public
health and the protection of the environment, safety, nuclear security and safeguards, outside
of the influences of other groups with political, economic or social interests. These main
issues of regulatory independence will generate in the public higher levels of trust and
confidence in the application of nuclear technologies, which is a requisite for the continued
use of nuclear energy and radioactive materials in the country.

This bill has been approved on third reading in the Seventeenth Congress.

‘Thus, passage of this bill is earnestly sought.

ERIC . AUMENTADO-


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

House Bill No.__2535

Introduced by Rep. Erico Aristotle C. Aumentado

AN ACT
PROVIDING FOR COMPREHENSIVE ATOMIC REGULATION, CREATING FOR
THE PURPOSE, THE PHILIPPINE ATOMIC REGULATORY COMMISSION,
AND APPROPRIATING FUNDS THEREFOR

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

ARTICLE I
General Provisions

Section 1. Short Title. This Act shall be known as the “Comprehensive Atomic
Regulation Act”.

Sec. 2. Declaration of Policy. It is hereby declared to be the policy of the State
to:

(a) Harness the peaceful uses of nuclear energy that can provide important
benefits in many fields, including health and medicine, energy production,
scientific research, agriculture, industry, and education;

(b) Recognize the potentially harmful effects of ionizing radiation resulting
from improper use, accidents, and/or malicious acts, as well as determine
the doses of radiation for which these ill-effects disappear or become
beneficial;


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(d)

(e)

10)

(a)

(b)

)

(d)

Protect individuals, society, and the environment from the potentially
harmful effects of ionizing radiation, including those resulting from
improper use, accidents or malicious acts;

Establish and maintain a legal and regulatory framework for the regulation
and control of peaceful uses involving radiation sources, nuclear material,
and any other radioactive material;

Manage radioactive waste in a manner that protects current and future
generations from undue impacts; and

Establish and maintain a legal and regulatory framework for implementing
effective measures to prevent, detect, and respond to unauthorized acts
involving nuclear material, other radioactive sources, or associated
facilities that may cause injury to persons, property or the environment or
otherwise jeopardize national security.

Sec. 3. Objectives. The objectives of this Act are:
To provide a legal framework that adequately protects public health and
safety and the environment against the harmful effects of ionizing
radiation, and for the safety and security of radiation sources;
To establish the Philippine Atomic Regulatory Commission (PARC), for the
purpose of exercising regulatory control over the peaceful uses of ionizing
radiation in the territory or area under the jurisdiction or control of the
Republic of the Philippines, including the production, possession, use,
import, export, transport, transfer, handling, and management of
radioactive materials, nuclear materials or any other activities or practices
identified by the PARC;
To establish and maintain a regulatory system for the formulation and/or
adoption of regulations and guides on the use of ionizing radiation that
specify the principles, requirements, and associated criteria for safety and
security upon which regulatory judgments, decisions, and actions are
based; and
To enable the Philippines to fulfill its obligations under relevant
international instruments entered into by the Philippines, in particular, the

2


Treaty on the Non-Proliferation of Nuclear Weapons (NPT); the Treaty on
Southeast Asia Nuclear Weapon-Free Zone; Comprehensive Test Ban
Treaty; the Agreement between the Philippines and the International
Atomic Energy Agency (IAEA) for the Application of Safeguards in
Connection with the NPT (the Safeguards Agreement); Additional Protocol
to Safeguards Agreement; Vienna Convention on Civil Liability for Nuclear
Damage; Agreement on the Privileges and Immunities of the IAEA;
Convention on the Physical Protection of Nuclear Material, UN Resolutions
‘on Nuclear Security, and other relevant international instruments entered
into by the Republic of the Philippines.

(e) To take cognizant on the pending conventions signed by the Philippine
Government such as the Amendment to the Convention on Physical
Protection of Nuclear Materials, International Convention on the
Suppression of Acts of Nuclear Terrorism, Convention on Nuclear Safety
and Joint Convention on the Safety of Spent Fuel Management and on the
Safety of Radioactive Waste Management.

Sec. 4. Scope, Exemptions and Exclusion.

(a) This Act shall apply to all activities and practices involving the peaceful
uses of nuclear energy and other radioactive materials, facilities and
radiation generating equipment.

(b) This Act shall not apply to activities or practices involving exposures that
have been excluded from regulatory control through regulations
established by the PARC.

(©) This Act shall not apply to regulations of sources of non-ionizing radiation.

Sec. 5. Definitions. As used in this Act:
(a) Activity or radioactivity refers to the amount of radionuclide produced
in a given energy state at a given time;
(b) Activities refer to the design, manufacture, construction, import, export
distribution, sale, loan, commissioning, use, operation, maintenance,
repair, transfer, decommissioning or possession of nuclear materials and

3


)

(a)

(e)

(9)

radiation sources for industrial, energy production, education, research,
agriculture and medical purposes; the transport of radioactive materials;
the mining and processing of radioactive ores; the closing down of
associated facilities; the clean-up of sites affected by the residues from the
past activities; and radioactive waste management activities such as the
discharge of effluents and such other activities as the PARC shall from
time to time determine;

Atomic refers to any process related to the atom, the basic building block
of matter;

Authorization refers to a written permission granted by the PARC to a
person who has submitted an application involving nuclear and radioactive
materials and associated facilities, and ionizing radiation generating
equipment. The authorization can take the form of a notification, a
registration, or a license;

Decommissioning refers to the administrative and technical actions
taken to allow the removal of some or all of the regulatory controls from a
facility to ensure the long term protection of the public and the
environment, and typically include reducing the levels of residual
radionuclides in the materials and on the site of the facility so that the
materials can be safely recycled, reused or disposed of as exempt waste
or as radioactive waste and the site can be released for unrestricted use or
otherwise reused;

Emergency plan refers to a description of the objectives, policy, and
concept of operations for the response to an emergency and of the
structure, authorities and responsibilities for a systematic, coordinated and
effective response. The emergency plan serves as the basis for the
development of other plans, procedures and checklists;

Emergency preparedness refers to the capability to take actions that
will effectively mitigate the consequences of an emergency for human
health and safety, quality of life, property, and the environment;


(h)

0)

(k)

10)

Emergency response refers to the performance of actions to mitigate
the consequences of an emergency for human health and safety, quality
of life, property, and the environment;
Exclusion refers to the deliberate excluding of a particular category of
exposure from the scope of an instrument of regulatory control on the
grounds that it is not considered amenable to regulatory control through
the regulatory instrument in question.
Exemption refers to the determination by the PARC that a source or
practice need not be subject to some or all aspects of regulatory control
on the basis that the exposure, including potential exposure due to the
source or practice is too small to warrant the application of those aspects
or that this is the optimum option for protection irrespective of the actual
level of the doses or risks;
Facilities refer to nuclear installations or radiation facilities in which
people may be exposed to ionizing radiation. These include:

1. uranium mining and raw material processing facilities such as

uranium mines;

. enrichment and fuel manufacturing plants;
. Nuclear power plants;
. other reactors such as research reactors and critical assemblies;
. spent fuel reprocessing plants;
. radioactive waste management facilities;
. radiation generator installations and facilities;
. irradiation installations;

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. nuclear and radiation facilities for medical, industrial, research and
education purposes; and
10.such other facilities as the PARC shall determine from time to time;
Facility operators refer to any organization or person applying for
authorization or authorized or responsible for nuclear, radiation,
radioactive waste or transport safety when undertaking activities or in
relation to any nuclear facilities or sources of ionizing radiation. This


(m)

(n)

(0)

(p)

(a)

10}

(s)

()

(u)

includes, inter alia, private individuals, governmental bodies, consignors or
carriers, licensees, hospitals, self-employed persons, etc.;

Income tefers to the fees and other payments given to the PARC in the
conduct of its regulatory functions;

Installation operator refers to any person authorized to undertake the
operation of a nuclear or radiation facility;

Ionizing radiation refers to electromagnetic or particulate radiation
capable of producing ion pairs directly or indirectly;

License refers to a legal document issued by the PARC granting
authorization to perform specified activities related to facilities or activities;
Licensee refers to the authorized person who is a holder of a valid license
granted for a practice or source who has recognized rights and duties for
the practice or source, particularly in relation to protection and safety; or
an organization having overall responsibility for facilities or activities;
Natural sources refer to naturally occurring sources of radiation, such as
the sun and stars (sources of cosmic radiation) and rocks and soil
(terrestrial sources of radiation);

Nuclear accident refers to any unintended event, including operating
errors, equipment failures and other mishaps, the consequences or
potential consequences of which are not negligible from the point of view
of protection or safety;

Nuclear damage refers to loss of life, any personal injury or any loss, or
damage to, or loss of use of property, which arises out of or results from
the radioactive, toxic, explosive or other hazardous properties, or any
combination thereof, of nuclear fuel or radioactive products or any waste
in, or of nuclear materials coming from, originating in, or sent to, a
nuclear installation or from the ionizing radiation emitted by any other
sources of radiation inside a nuclear installation. Personal injury includes
any physical or mental injury, sickness or disease, death whether caused
directly by a physical trauma or otherwise;

Nuclear incident refers to any occurrence or series of occurrences
having the same origin which causes nuclear damage or, but only with

6


(vy)

(w)

&

respect to preventive measures, creates a grave and imminent threat of
causing such damage;
Nuclear installation refers to any of the following:

1. A nuclear power plant;

2. a nuclear reactor for research or production of nuclear materials for
industrial or medical use, including critical and sub-critical
assemblies;

3. a plant for preparing or storing fuel for use in a nuclear reactor as
described in paragraph (1);

4. a nuclear waste storage or disposal facility with an activity that is
greater than the activity level prescribed by regulations made for
the purposes of this law;

5. a facility for production of radioisotopes with an activity that is
greater than the activity level prescribed by regulations made for
the purposes of law this section; and

6. any other facility that is prescribed for the development, production
or use of nuclear energy or the production, possession or use of a
nuclear substance, prescribed equipment or prescribed information;

Nuclear material refers to:

1. nuclear fuel, other than natural uranium and depleted uranium,
capable of producing energy by a self-sustaining chain process of
nuclear fission outside a nuclear reactor, either alone or in
combination with some other materials; and

2. Plutonium except that with isotopic concentration exceeding 80% in
plutonium-238; uranium-233; uranium enriched in the isotope 235
or 233; uraniuni containing the mixture of isotopes as occurring in
nature other than in the form of ore or ore residue; any material
containing one or more of the foregoing;

Nuclear or radiological emergency refers to a non-routine situation
that necessitates prompt action primarily to mitigate a hazard due to (a)
The energy resulting from a nuclear chain reaction or from the decay of
the products of a chain reaction; or (b) Radiation exposure or adverse

7


107)

(2)

(aa)

(bb)

(cc)

(dd)

consequences for human health and safety, quality of life, property or the
environment;

Nuclear safety refers to the achievement of proper operating conditions
of nuclear installations, proper handling and use of nuclear material,
prevention of accidents or mitigation of consequences of accidents
resulting in protection of workers, the public, and the environment from
undue radiation hazards;

Person refers to (1) Any individual, organization, corporation, partnership,
firm, association, trust, estate, public or private institution, group, political
or administrative entity or other person designated in accordance with
national legislation, who or which has responsibility and authority for any
action taken under this Act; and (2) any legal successor, representative,
agent, or agency of the foregoing. It can also mean any individual who
works, whether full time, part time, temporarily, for a licensee and who
has recognized rights and duties in the license in relation to occupational
radiation protection;

Physical protection refers to technical and organizational measures for
protection of nuclear material or authorized facilities designed to prevent
unauthorized access with nuclear installations, nuclear materials and other
radioactive materials;

Practices refer to activities that introduce additional sources of exposure
or exposure pathways or extends exposure to additional people or
modifies the network of exposure pathways from existing sources, so as to
increase the exposure or the likelihood of exposure of people or the
number of people exposed;

Radiation facility refers to a facility that utilizes radioactive materials;
particle accelerator facility; and other such facility that the PARC shall
determine from time to time;

Radiation generating equipment or radiation generator refers to
an equipment or device that generates ionizing radiation when energized
(e.g., x-ray generating equipment) or that would, if assembled or


(ee)

(ff)

(99)

(hh)

0)

Gi)

(kk)

(0)

repaired, be capable of producing ionizing radiation when energized as the
PARC shall from time to time determine;

Radiation protection refers to the protection of people and the
environment from the harmful effects of ionizing radiation;

Radiation source refers to a radiation generator, or a radioactive source
or other radioactive material outside the nuclear fuel cycles of research
and power reactors;

Radioactive material refers to any material designated in national law
or by PARC as being subject to regulatory control because of its
radioactivity which includes sealed and unsealed sources and radioactive
waste;

Radioactive source refers to a radioactive material permanently sealed
in a capsule or closely bonded and in a solid form and which is not exempt
from regulatory control. This also includes any radioactive material
released if the radioactive source is leaking or broken, but does not
include material encapsulated for disposal, or nuclear material within the
nuclear fuel cycles of research and power reactors;

Radioactive waste refers to waste substances, objects or equipment for
which no further use is foreseen by their owner, with a radionuclide
content or surface radionuclide contamination exceeding values permitting
their discharge into the environment, these values shall be set out in an
implementing regulation;

Radioactive waste disposal refers to a permanent emplacement of
radioactive waste into areas, facilities or installation without the intention
of its retrieval;

Radioactive waste and spent fuel storage refers to the holding of
radioactive sources, spent fuel or of radioactive waste in a facility that
provides for their/its containment, with the intention of retrieval;
Radionuclide refers to an unstable form of a chemical element that
radioactively decays, resulting in the emission of nuclear radiation;

(mm) Registrant refers to the holder of a current registration;


(nn)

(00)
(pp)

(aq)

(rm)

(ss)

(tt)

Registration refers to a form of authorization for practices of low or
moderate risks whereby the person responsible for the practice has
prepared and submitted a safety assessment of the facilities and
equipment to the PARC and has complied with the legal requirements. The
requirements for safety assessment and the conditions or limitations
applied to the practice should be less severe than those for licensing.
Typical practices that are amenable to registration are those for which:

1. safety can largely be ensured by the design of the facilities and

equipment;

2. the operating procedures are simple to follow;

3. the safety training requirements are minimal; and

4. there is a history of few problems with safety in operations;
Regulatory Body refers to the Philippine Atomic Regulatory Commission;
Safeguards refer to measures undertaken to ensure that the nuclear
material, non-nuclear material, services, equipment, facilities, information,
and certain items are not used for the manufacture of nuclear weapons or
any other nuclear explosive devices or to further any military purpose;
Safety refers to the protection of people and the environment against
radiation risks, and the safety of facilities and activities that give rise to
radiation risks;
Security refers to the prevention and detection of and response to, theft,
sabotage, unauthorized access, illegal transfer or other malicious acts
involving nuclear material, other radioactive substances or their associated
facilities;
Source refers to anything that may cause radiation exposure such as by
emitting ionizing radiation or by releasing radioactive substances or
material and can be treated as a single entity for protection and safety
purposes;
Special Drawing Right, hereinafter referred to as SDR, refers to the
unit of account defined by the International Monetary Fund and used by it
for its own operations and transactions;


(uu) Special fissionable materials refer to Plutonium-239, Uranium-233,
Uranium enriched in the isotopes 235 or 233 and materials containing one
‘or more of the foregoing in concentration or amount exceeding values
established by the PARC;

(w) Spent fuel refers to nuclear fuel that has been irradiated in and

permanently removed from a reactor core; and

Technical and scientific support organization refers to external

organization or experts who are not part of the PARC's permanent staff

(ww)

from whom the PARC may seek advice or recommendations in the conduct
of its regulatory responsibilities.

ARTICLE IT
The Philippine Atomic Regulatory PARC

Sec. 6. Creation and Mandate of the Philippine Atomic Regulatory Commission
(PARC). There is hereby created an independent central nuclear regulatory body to
be known as the

Philippine Atomic Regulatory Commission (PARC) which shall exercise
authority over all aspects of safety, security, and safeguards involving nuclear
materials and other radioactive materials, facilities and radiation generating
equipment.

Sec. 7. Regulatory Policy. In issuing authorizations and other regulations
under this Act, the PARC shall:

(a) Impose the minimum requirements to protect the health and safety of the
public and the environment, and ensure the security of ionizing radiation
sources;

(b) Prevent the spread of nuclear weapons and prevent nuclear or radiological
terrorism consistent with the obligations of the Philippines under relevant
international instruments;

(c) Establish and implement regulations, rules and orders consistent with
relevant international standards and best practices; and

W


(d) Ensure that facility operators are technically and financially qualified to
engage in the proposed activities in accordance with the requirements of
this Act and the PARC’s regulations, and has financial protection to fulfill
obligations on liability for nuclear and radiation damage.

Sec. 8. Functions of the PARC. The PARC shall:

(a) Define, formulate, develop and issue policies, regulations, orders and
rules, standards, regulatory guides, and other issuances necessary for the
implementation of this Act and its implementing rules and regulations;

(b) Issue, amend, and revoke rules, regulations and orders pertaining to the
financial capability of facility operators to cover liability for nuclear
damage;

(c) Establish and implement a system of authorization in the form of
notification, registration, and licensing, including modifications,
amendments, suspension, and revocation of such authorizations,

(d) Review and assess submissions on safety assessments and security plans
from the facility operators prior to authorization and periodically
thereafter, as required;

(e) Inspect, monitor, and assess activities and practices ensure compliance
with applicable regulations, and the terms and conditions of
authorizations;

(f) Take enforcement measures as provided for under Section 21 of this Act
in the event of non-compliance with applicable regulations or the terms
and conditions of authorizations;

(g) _ Define exemptions and exclusions from regulatory control;

(h) Ensure the application of safety, safeguard and security requirements
consistent with national and international commitments;

(i) Hold hearings and conduct investigations, and for these purposes,
administer oaths and affirmations and issue subpoenas to any person to
appear and testify, or to appear and produce documents at any
designated time and place;


10)

(k)

10)

(m)

(n)

(0)
(p)

(a)

1G)

Cooperate with and act as the national competent authority on nuclear
safety, security and regulatory matters for the International Atomic Energy
Agency (IAEA), foreign governments, ministries, departments, and
agencies, relevant regional and international organizations, including law
enforcement and intelligence agencies;

Participate in relevant regional and international
conferences/meetings/workshops/seminars/trainings related to safety,
security, and safeguards of nuclear and other radioactive materials and
safety of radiation generating equipment;

Obtain experts’ advice and opinions necessary to perform its functions,
including the hiring of consultants, contracting of specific projects, or
establishing Technical and Scientific Support Organizations (TSOs) or ad
hoc advisory bodies;

Conduct or contract out research activities on radiation safety and
security;

Establish appropriate mechanisms and procedures for informing and
consulting the public and other stakeholders about the regulatory process
and the safety, health, and environmental aspects of regulated activities
and practices, including in incidents, accidents, and abnormal occurrences;
Establish and maintain a national register of radiation sources;

Establish and maintain a national register of persons authorized to carry
out activities or practices under this law;

Cooperate with the IAEA in the application of safeguards in accordance
with the Safeguards Agreement, and any protocols thereto, between the
Republic of the Philippines and the IAEA, including conducting inspections
and visits, carrying out complementary access and providing any
assistance or information required by designated IAEA inspectors in the
fulfillment of their responsibilities;

Establish and maintain a State System of Accounting for and Control of
nuclear material and a national system for the registration of licenses for
nuclear material, and to establish the necessary reporting and record


keeping and requirements pursuant to the Safeguards Agreement, and
any protocols thereto, between a State and the IAEA;

(s) Perform such other relevant functions necessary to implement the
provisions of this Act.

Nothing in this Act shall preclude the authorized agents of the Department of
National Defense and other law enforcement agencies to conduct inspections of
atomic energy facilities; and materials or any activities jointly with the authorized
representatives of the PARC when the national security of the State is involved.

Sec. 9. Management System. The PARC shall establish, implement, and
assess a management system that is aligned with its safety goals and contributes to
its achievement. The PARC shall ensure that regulatory control is stable and
consistent.

Sec. 10. Organizational Structure of the PARC. The PARC shall be headed by
a Commissioner who shall be appointed by the President for a term of five (5) years
with a rank equivalent to an Undersecretary. The Commissioner shall be assisted by
four (4) Deputy Commissioner who shall be appointed by the President with a rank
equivalent to Assistant Secretary with a term of five (5), four (4), three (3) and two
(2) years, respectively. Thereafter, the successors shall be appointed for five (5)
years. The four (4) deputy Commissioners shall represent the following sectors: (a)
health, (b) energy, (c) defense and security, and (d) industry which shall include
research, industry, agriculture and environment. The Deputy Commissioners may
come from any of the aforesaid sectors.

The Commissioner or at least one (1) of the four (4) Deputy Commissioners
shall have the necessary scientific and technical qualifications, preferably an
advanced degree in natural sciences or engineering or a broad professional
background in any of the said fields.

The members of the PARC shall not be removed from office except for just
cause as may be provided by law.


For the proper management and effective implementation of the objectives of
the PARC, an Executive Director shall be appointed by the President upon the
recommendation of the PARC, and shall perform the following functions:

(a) Assist the Commissioner in the discharge of the executive and
administrative functions;

(b) Coordinate and direct the activities of the staff and be responsible for the
day-to-day management of the affairs and activities of the PARC;

(c) Recommend and develop plans to achieve the PARC’s objectives;

(d) Provide secretariat services to the PARC; and

(e) Perform such other relevant functions necessary to implement the
provisions of this Act.
All other officials and employees of PARC shall be appointed by the
Commissioner subject to the civil service laws, rules and regulations.

Sec. 11. Official Site of PARC. A land area equivalent to at least ten (10)
hectares out of the area of lands which are under the administration of the Bases
Conversion and Development Authority (BCDA) within the Clark Special Economic
Zone in Pampanga and Tarlac, shall be allocated exclusively for the PARC office:
Provided, That the PARC shall establish additional offices in strategic areas as it may
deem necessary: Provided further, That the boundaries and technical descriptions of
these land areas shall be determined by an actual and joint group survey.

Sec. 12. Use of Income. The budget of the PARC, based on an annual
appropriation from Congress, shall ensure that the PARC has the financial and
human resources necessary to fulfill its assigned responsibilities under this Act.

The PARC shall also be authorized to:

(a) Charge and collect reasonable fees in the performance of Its regulatory
functions; Provided, that such fees shall be imposed by regulation on
the basis of such published criteria as the PARC deems appropriate and
in compliance with existing rules and regulations; and

(b) Use of its income, donations, bequests, grants, and all sums which
may be appropriated for upgrading its physical and human resources,

15


with due consideration to the PARC’s independence and impartiality for
the conduct of its activities, and for augmentation of its budget in case
of shortfalls. The PARC, as an independent and impartial PARC may
also solicit, receive and retain donations, bequests, and grants.

Sec. 13. Nuclear Waste Management Fund. In view of the great importance
of nuclear waste disposal and spent fuel, a portion of the payment of the electricity
generated from the use of nuclear energy shall be set aside to establish a Nuclear
Waste Management Fund. The Fund shall be held in escrow and can only be utilized
for the decommissioning of nuclear facilities and for the safe disposal of the nuclear
waste, which includes siting research, transports and final geological disposal. The
portion of the payment shall be determined by the PARC comparable to international
practice.

Sec. 14. Technical and Scientific Support Organizations. The PARC is
authorized to seek expert opinion and recommendations from independent technical
and scientific support organizations whose technical advice does not have any
conflict of interest or improper influence on its regulatory decision making. Any
advice offered shall not relieve the PARC of its responsibilities under this Act, other
relevant laws, and applicable regulations.

Sec. 15. Establishment of an Advisory Board. There shall be established an
advisory board to assist and advise the Commissioners on the safety and security
matters arising from the use of nuclear and radioactive materials and from the
operation of nuclear installations and radiation facilities, and on regulations
applicable to such authorizations. The advisory board, not exceeding thirteen (13)
members, shall be composed of the following:

(a) Secretary of the Department of Science and Technology, as Chairperson;

(b) Secretary of Department of Health, as Vice Chairperson;

(©) _ Secretary of the Department of Energy, as Member;

(d) Secretary of Department of Environment and Natural Resources, as
Member;


(e) Secretary of Department of National Defense, as Member;

(f) Secretary of Department of Trade and Industry, as Member;

(g) Secretary of the Department of Agriculture, as Member;

(h) Secretary of Department of Labor and Employment; and

(i) Five (5) experts from the academe and related industry and/or
professional associations.

The advice of the Board shall not be disregarded by the PARC in its decisions
or resolutions: Provided, however, That the PARC shall have the final decision and
shall be ultimately accountable to their decisions and actions.

The Advisory Board may be convened anytime by any of its Chairpersons, or
upon the request of the PARC.

ARTICLE III
Regulation and Authorization of Nuclear Installations
And Radiation Facilities
Sec. 16. Requirement for Authorization.

(@)__ Any person who intends to engage in activities or practices shall submit
application to the PARC of its intention to carry out such activities or
practices in the form and within the time limits required by the PARC.

(b) No authorization to acquire, own, or operate any nuclear installations and
radiation facilities shall be issued to an alien, or any corporation or other
entity which is owned or controlled by an alien, a foreign corporation, or a
foreign government. For purposes of this Act, a corporation or entity is not
owned or controlled by an alien, a foreign corporation of a foreign
government unless at least sixty percent (60%) of its capital stock is
owned by Filipino citizens.

Sec. 17. Activities Subject to Authorization. It shall be unlawful for any
person to transfer, construct, receive, own, possess, operate, import or export any
nuclear installations and radiation facilities except under an authorization issued by
the PARC under this Act. A person or organization shall be required specific


authorization issued by the PARC under this Act to conduct any of the following
activities:

1)

(b)

©

(d)

(e)

10)

(9)

Transfer, receive, acquire, own, possess, or use nuclear or radioactive
material for medical, industrial, agricultural, energy production and
research applications;

Manufacture and distribute of radioactive materials or products containing
radioactive materials to other licensees or persons exempt from the
requirements for a license;

Produce radioactive materials from particle accelerators;

Use of ionizing radiation devices in medicine, dentistry, veterinary
medicine, commerce and industry, education and training, research, anti-
crime, security, household activities and all other facilities/establishments;
Site, construct, commission, operate, dismantle, decommissioning, and
closure of nuclear installations;

Transport nuclear or radioactive materials to, within, and from the
Philippines; and

Engage in or provide nuclear technical services.

Sec. 18. Licensing Process and Conditions for Issuance of Authorization. The

PARC shall provide for the licensing process and the conditions for issuance of
authorization specified in the Implementing Rules and Regulations (IRR) issued
under this Act.

@)

(b)

Sec. 19. Responsibilities of the Authorized Person.

Any person authorized to conduct activities or practices shall have the
primary responsibility for the safe and secure conduct of those activities or
practices and for ensuring compliance with this Act and all applicable
regulatory requirements and conditions of the authorization related to
those activities or practices.

Any person authorized to conduct activities or practices shall provide the
PARC with any requested assistance in the performance of its regulatory
functions.


(©

Any person ceasing authorized activities or practices shall inform the PARC
prior to the cessation of those activities or practices.

Sec. 20. Provisional Authorization. In all cases of application for authorization

to construct a facility, if the PARC finds that, on the basis of the technical
information and data so far made available to it, there is reasonable assurance that
the proposed facility can be constructed and operated at the proposed location
without undue risk to the health, safety, and security of the public and the
environment, the PARC shall initially issue a provisional license to the applicant. Such
a provisional authorization may be granted even if the information on health, safety,
and security then available is less than would be needed for an authorization to
operate provided that the PARC is satisfied that there is reasonable assurance that
questions of health, safety, and security will be so resolved as to warrant the
issuance of an authorization to operate the facility. The provisional authorization
provided herein shall not exceed one (1) year.

(@)

(b)

©

Sec. 21. Inspections and Enforcement.

The PARC shall implement a system of inspection of nuclear and radiation
facilities and transport, through regulations issued under this Act, to verify
compliance with the applicable requirements and conditions of any
authorization issued under Section 16.

The PARC shall implement a system of verification of the safety and
security of nuclear and other radioactive material through safety and
security assessments; monitoring and verification of compliance with any
authorization issued under Section 16; inspections; and the maintenance
of appropriate records by licensees. The verification system shall be
provided for in the regulations issued under this Act.

Where the PARC has established that any person has committed a
violation of relevant nuclear safety, security and safeguards regulations
issued under this Act, the conditions of an authorization issued under
Section 18, or other requirements that do not constitute a criminal offense
under Sections 59 and 60 of this Act, the PARC may impose by order any

19


of the following penalties in conformity with the proceedings provided for
in Section 23: suspension, modification, and revocation of authorization, or
imposition of a civil monetary penalty.

Sec. 22. Additional Requirements in Case of Nuclear Installation for
Commercial Power: Exemptions. Nothing in this Act shall be construed to exempt the
operator of a nuclear facility designed primarily for the generation of electricity for
commercial purposes, from complying with other requirements provided by existing
laws, such as securing a franchise, a certificate of public convenience and necessity,
obtaining approval for rates and services and others, from the appropriate agency
having jurisdiction: Provided, however, that upon certification by the Commission,
importations of nuclear fuel for use in these facilities shall be free from all taxes and
duties in accordance with incentives under the pertinent provisions of RA 5186,
Investment Incentives Act .

Sec. 23. Suspension, Modification, and Revocation of Authorizations. Any
authorization issued pursuant to this Act may be suspended, modified or revoked by
the PARC in the event of a willful violation of its conditions, when circumstances in
which the public interest, health, safety, or security so requires, when the conditions
under which it was issued are no longer complied with, or in any circumstance that
continued activities under the authorization shall pose an unacceptable risk to people
or the environment: Provided, that the licensee shall have been accorded an
opportunity to demonstrate or achieve compliance with the requirements. In all
instances, the PARC shall provide information to the public on the procedures and
requirements for suspension, modification, renewal, revocation or relinquishment of
authorizations.

No authorization shall be transferred, assigned, encumbered, or in any
manner disposed of, either voluntarily, or involuntarily, directly or indirectly, unless
the PARC shall, after securing full information, find that such transfer, assignment,
encumbrance, or other disposition is in accordance with the purposes and provisions
of this Act and shall give its consent in writing.

20


Upon the suspension, revocation, or expiration of an authorization which is
not renewed, and pursuant to PARC order, the licensee shall be required to take
such measures as may be necessary to protect the health and safety of the public —
and the environment from the harmful effects of radiation, and ensure security of
radioactive material and facilities.

Whenever practicable, the PARC may take temporary custody of any nuclear
and other radioactive material and facilities held by the licensee pending their
appropriate and lawful disposition by or for the licensee.

ARTICLE IV
Radiation Protection

Sec. 24. Regulation to Ensure Radiation Safety.
(a) The PARC shall take the appropriate steps to ensure that:

1. No activities or practices shall be authorized unless it produces
sufficient benefit to the exposed person or to the society in a
manner that offsets the radiation harm that it may cause;

2. The magnitude of individual doses, the number of persons exposed,
and the likelihood of incurring exposures shall all be kept as low as
reasonably achievable, economic and social factors being taken into
account; and

3. No individual shall be exposed to ionizing radiation doses which
exceed prescribed national dose limits;

(b) The PARC shall establish dose limits for persons that may not be exceeded
in conducting activities under regulatory control;

(©) The PARC shall identify sources or practices to be exempted from
regulatory control.

(d) The PARC shall establish clearance levels below which radioactive material
within authorized activities and practices can be released from regulatory
control;

21


(e) The PARC shall maintain a national system for registration of licensees,
registrants, imported and exported selected items, and ionizing radiation
sources;

(f) The PARC shall ensure that authorized facilities maintain a record of
exposure of the public, patients, and of workers occupationally exposed to
ionizing radiation at their work; and

(g) The PARC shall promulgate appropriate regulations, rules, orders and
related guidelines to address all issues and concerns related to exposure
to ionizing radiation from natural sources.

Sec. 25. Responsibilities of Authorized Persons in Radiation Protection.

(a) The authorized person shall bear the prime responsibility for ensuring the
safety and security of the facility and of all activities and practices
associated with it;

(b) Authorized persons shall ensure compliance with the requirements and
dose limits established by the PARC and shall ensure that radiation doses
to workers and the public, including doses from releases to the
environment, are as low as reasonably achievable, taking into account
social and economic factors;

(c) Persons authorized to conduct activities utilizing ionizing radiation for
medical purposes shall ensure the overall patient protection and safety in
the prescription of, and during the delivery of, medical exposures.

ARTICLE V
Emergency Preparedness and Response

Sec. 26. Emergency Plan. No authorization or license to conduct activities or
practices, operate a facility or possess or use a source may be granted unless and
until an appropriate emergency preparedness and response plan has been
developed by the applicant and approved by the PARC.

Sec. 27. Emergency Preparedness and Response. The PARC shall:

22


(a) Develop and maintain a national emergency plan for responding to
potential nuclear or radiological emergencies;

(b) Coordinate the task of the radiological emergency response organization
of the PARC within the framework of the National Disaster Risk Reduction
and Management Council (NDRRMC) of the Department of National
Defense in the event of a nuclear and radiological emergency; and

(c) Provide for the activities of an emergency response center and for an
international exchange of information on the radiation situation, consistent
with the Philippines’ obligations under the Convention on Early Notification
of a Nuclear Accident and the Convention on Mutual Assistance in the
Case of a Nuclear Accident or Radiological Emergency.

(d) __ Define the radiation levels at which evacuation should be considered.

ARTICLE VI
Transport of Nuclear and Other Radioactive Material

Sec. 28. Regulation in the Transport of Nuclear and Other Radioactive
Material, The PARC shall establish and implement safety and security requirements
for the transport of nuclear and other radioactive material to, from and within the
jurisdiction of the Philippines consistent with the International Atomic Energy Agency
(IAEA) regulations for the safe and secure transport of radioactive material.

Sec. 29. Requirements for Authorization. No person shall engage in the
transport of radioactive material without an authorization issued by the PARC.

ARTICLE VIT
Import and Export of Nuclear and Other Radioactive Materials

Sec. 30. Export or Import Control. The PARC shall establish regulatory

requirements and relevant guides for the exportation and importation of nuclear and
other radioactive materials which require licensees, inter alia:

23


(a) To secure an authorization from the PARC prior to export or import with
the assurance of applying safeguards and physical protection measures to
protect public health, safety and security;

(b) To ensure before import that the exporter has an authorization from the
competent authority of the exporting country to export such materials to
the Philippines in accordance with laws and regulations of that country;
and

(c) To ensure before export that the importing country has the appropriate
technical and administrative capability, resources and regulatory
infrastructure needed for the safe and secure management of the
requested nuclear and other radioactive material, particularly disused
sources.

ARTICLE VIII
Management of Spent Nuclear Fuel
And Other Radioactive Waste

Sec. 31. Regulation of Radioactive Waste and Spent Nuclear Fuel
Management. To ensure the safe and secure management of radioactive waste and
spent fuel, the PARC shall establish:

(a) Applicable safety and security requirements and regulations for the
protection of people and the environment from adverse impacts of
radioactive waste and spent fuel management activities;

(b) A system of authorization of radioactive waste and spent fuel management
activities;

(c) A system of regulatory inspection, documentation, and reporting for
radioactive waste and spent fuel management activities, and in the case of
disposal, a system of institutional control; and

(d) A system of enforcement to ensure compliance with applicable regulations
and the terms and conditions of authorizations for radioactive waste and
spent fuel management activities.

24


ARTICLE IX
Nuclear Safety and Decommissioning

Sec. 32. Nuclear Safety.

(a) Any person who intends to construct or operate a nuclear installation or to
conduct related activities shall obtain an authorization from PARC consistent
with the terms of this Act and applicable regulations.

(b) The PARC shall establish requirements for the regulatory control of nuclear
installations to include the following:

(1)

(2)

(3)

(4)
(5)

Regulations for siting, design, construction, commissioning, operation
maintenance and decommissioning;

Regulations for public information, management system and
authorization of installation operators

Assessment and verification of safety and security by the facility operator
and by PARC;

Financial and human resources necessary to ensure safety and security;
Human factors to be taken into account by the facility operator during
the lifetime of the nuclear installation;

Section 33. Responsibility of Authorized Person for nuclear safety. The
authorized person shall bear the prime responsibility for ensuring nuclear safety and
security of nuclear installation and of all activities and practices associated with it.

Section 34. Decommissioning of nuclear installation.
(a) The PARC shall establish requirements for the decommissioning of nuclear
installations, including:

(1)

(2)

Safety and environmental criteria, including conditions on the end state
of the decommissioning;

Limits and conditions for the removal of regulatory control for nuclear
installations containing radionuclides;

25


(b)

(b)

(3) Regulations for the clearance of radioactive material during and following
decommissioning.

The PARC shall ensure that relevant documents and records prepared by the

facility operator are maintained for a specified period of time before, during

and after decommissioning.

Sec. 35. Decommissioning Plan.

At the design stage of a nuclear installation, the applicant for authorization to
construct and operate a nuclear installation shall prepare an_ initial
decommissioning plan for approval by the PARC. The plan shall be
commensurate with the type and status of the nuclear installation and the
hazard that may be associated with the decommissioning.

The PARC shall require the facility operator to provide periodic reviews and
updates of the decommissioning plan and shall specify the maximum time
intervals between such reviews and updates.

ARTICLE X
Safeguards, Physical Protection, and Security

Sec. 36. Safeguards. The PARC shall:

(a) Maintain a system of accounting for and contro! of nuclear materials and
establish requirements for accounting for and methods for control of
nuclear material;

(b) Fulfill the Philippines’ obligation to the Non-Proliferation Treaty, the
Safeguards Agreement, and related international treaties, conventions,
agreements and protocols thereto;

(©) Ensure unimpeded access by designated IAEA inspectors and duly
authorized representatives of the Philippine government agencies to any
location or facility provided for under the Safeguards Agreement and any
protocols thereto, with a view to conducting the verification activities
authorized by these instruments; and

26


(d) Ensure full cooperation and support to the IAEA by all national
government agencies and authorized persons in the application of
safeguards measures.

Sec. 37. Physical Protection and Security of Nuclear and Other Radioactive
Material, The PARC:

(a) Have the authority to issue regulations, rules and orders under this Act to
implement effective measures to prevent, detect, and respond to
unauthorized acts involving nuclear and other radioactive material that
may cause injury to persons, property or the environment in the Republic
of the Philippines or otherwise jeopardize national security;

(b) Establish requirements under the regulations issued under this Act for the
physical protection of nuclear material, and shall fulfill the Republic of the
Philippines’ obligations as a party to the Convention on the Physical
Protection of Nuclear Material, the Amendment thereto, and other
international treaties and conventions;

(©) __ Have the authority under this Act to issue regulations, rules and orders for
the protection of individuals, society and the environment from the
deleterious effects of radioactive sources;

(d) Have the authority under this Act to coordinate with the relevant agencies
of government and seek international cooperation to effectively implement
these security measures.

ARTICLE XI
Administrative Procedure and Judicial Review

Sec. 38. Notice and Conduct of Hearing. In any proceeding under this Act for
the grant, suspension, revocation or amendment of any authorization, or upon the
issuance of an order, the PARC shall hold a hearing upon the request of any person
whose interest may be affected and shall admit such person as a party to the
proceeding.

27


The hearings of the PARC may be open to the public and relevant
stakeholders, except where warranted by considerations of security, national
defense or proprietary matters.

Except in cases where immediate action is required in order to protect the
health and safety of the public or the national interest, no order issued under
Section 23 shall become effective until after the licensee has had notice for a hearing
and opportunity to be heard.

Where an order suspending, revoking or modifying an authorization or an
order issued under Section 23 is made effective without prior notice for a hearing
and opportunity to be heard, the order shall only be temporary pending the hearing
and issuance of the PARC’s final decision in the proceeding.

Sec. 39. Orders and Decisions. All orders and decisions of the PARC shall be in
writing, stating clearly and distinctly the facts and issues involved and the reasons
‘on which the PARC’s order or decision is based, and shall be made available to the
public.

Sec. 40. Judicial Review. The Court of Appeals is hereby given the power of
judicial review over any final order or decision of the PARC rendered under Section
34 and shall modify or set aside such order or decision when it clearly appears that
there was no evidence before the PARC to support reasonably such order or
decision, or that the same is contrary to law. Any such final decision or order may be
reviewed by the Court of Appeals on the application of any party or other person
affected thereby, by certiorari in appropriate cases, or by petition for review, in
accordance with the Rules of Court, within such period as the PARC may rule or
prescribe but not exceeding thirty (30) days from notice of such order or decision.
An appeal shall not suspend the grant of authorization, but shall maintain the
suspension or revocation of authorization until after the final disposition of the
appeal by the Court of Appeals, unless said Court determines otherwise. Only
questions of law on such order or decision may be reviewed by the Supreme Court.

28


Sec. 41. Notice of Regulation. No regulation adopted by the PARC shall be
effective less than fifteen (15) days after publication of the regulation in any
newspaper of general circulation, except, that if the PARC finds that the health,
safety, and security or the national interest requires, the regulation may be made
effective immediately upon publication in the Official Gazette, or in a newspaper of
general circulation or upon furnishing copies of the regulation to the persons
affected.

Sec. 42. Incident Reports. No report by any licensee of any incident arising
out of or in connection with authorized activities made pursuant to any requirement
of the PARC shall be admitted as evidence in any suit or action for damages growing
out of any matter mentioned in such report.

ARTICLE XII
Civil Liability For Nuclear and Radiation Damage

Sec. 43. The Operator Liability. The operator shall be liable for nuclear
damage upon proof that such damage has been caused by a nuclear incident:
(a) In the operator's nuclear installation;
(b) Involving nuclear material coming from or originating in the operator's
nuclear installation, and occurring:
1. Before liability with regard to nuclear incidents involving the nuclear
material has been assumed, pursuant to the express terms of a
contract in writing, by another installation operator;
2. In the absence of such express terms, before another installation
operator has taken charge of the nuclear material.
(c) Involving nuclear material sent to the operator's nuclear installation, and
occurring:
1. After liability with regard to nuclear incidents involving the nuclear
material has been assumed by him, pursuant to the express terms
of a contract in writing, from another installation operator; or

29


(d)

(e)

(a)

2. In the absence of such express terms, after the operator has taken
charge of the nuclear material: Provided, that if nuclear damage is
caused by a nuclear incident occurring in a nuclear installation and
involving nuclear material stored therein incidentally to the carriage
of such material, the provisions of paragraph (a) of this Section
shall not apply where another installation operator or person is
solely liable pursuant to the provisions of paragraph (b) or (c) of
this Section.

‘Any provision in this Section to the contrary notwithstanding, the
installation operator shall be liable for nuclear damage upon proof that
such damage has been caused by a nuclear accident involving nuclear
material in the course of carriage:

1. To a nuclear installation located in the territory of a state not party
to an international convention on civil liability for nuclear damage to
which the Philippines is a party; or

2. To international transport between the Philippines and an operator
in another Contracting Party to the Vienna Convention.

For the purpose of this Act, whenever both nuclear damage and damage
other than nuclear damage have been caused by a nuclear incident or
jointly by a nuclear incident and one or more other occurrences, such
other damage shall, to the extent that it is not reasonably separable from
the nuclear damage be deemed to be nuclear damage caused by that
nuclear incident. Where, however, damage is caused jointly by nuclear
incident covered by this Section and by an emission of ionizing radiation
not covered by it, nothing in this Section shall limit or otherwise affect the
liability, either as regards any persons suffering nuclear damage or by way
of recourse or contribution, of any person who may be held liable in

connection with that emission of ionizing radiation.

Sec. 44. Absolute and Exclusive Liability.
The liability of the installation operator for nuclear damage shall be
absolute;

30


(b) The installation operator shall not be liable for nuclear damage caused by
a nuclear incident directly due to a grave natural disaster of an exceptional
character; and

(©) Except as otherwise provided in this Act, no person other than the
installation operator shall be liable for nuclear damage.

Sec. 45. Recourse Actions. The installation operator shall have a right of
recourse only:
(a) If there is such a right pursuant to the express provision of a written
contract with the other installation operator; or
(b) If the nuclear incident results from an act or omission done with intent to
cause damage, against the individual who has acted or omitted to act with
such intent.

Sec. 46. Gross Negligence or Intentional Act of Claimant. If the nuclear
damage resulted wholly or partly either from the gross negligence of the person
suffering the damage or from an act or omission of such person done with intent to
cause damage, the Court may relieve the installation operator from the obligation to
pay compensation in respect of the damage suffered by such person.

Sec. 47. Exceptions to Liability. An installation operator shall not be liable for
any nuclear damage caused by a nuclear accident directly due to an act of armed
conflict, hostilities, civil war or insurrection.

Sec. 48. Limit of Liability. The liability of the installation operator for nuclear
damage under this Act shall be limited to an amount in Philippine pesos which is
equivalent to 300 million Special Drawing Rights (SDRs) or roughly equivalent to 400
million US dollars, for any one nuclear incident, exclusive of interest or costs which
may be awarded by the Court in actions for compensation of such nuclear damage.
The amount may be subject to change, as determined by the PARC, in accordance
with international conventions ratified by the Philippines.

31


Sec. 49. Exemption from Liability. The installation operator shall not be liable
under this Act for nuclear damage:

(a) To the nuclear installation itself or to any property on the site of that
installation which is used or to be used in connection with that installation;
or

(b) To the means of transport upon which the nuclear material involved was
located at the time of the nuclear incident.

Sec. 50. Exclusions. The PARC may, if it determines that the small extent of
the risk involved so warrants, exclude by regulation any small quantities of nuclear
material from the application of the provisions in this Article XI: Provided, that (a)
maximum limits for the exclusion of such quantities have been established by the
Board of Governors of the International Atomic Energy Agency; and (b) any
exclusion must be within the limits so established.

Sec. 51. Certificate to Carrier. In accordance with such regulations as the
PARC may issue, the appropriate installation operator shall provide the carrier, which
furnishes carriage of nuclear material, with a certificate issued by or on behalf of the
insurer or other financial guarantor furnishing the financial security.

Sec. 52. Liability of Several Installation Operators. Where nuclear damage
engages the liability of more than one installation operator, the following rules shall
apply:

(a) In so far as damages attributable to each installation operator are not
reasonably separable, the installation operators involved shall be jointly
and severally liable;

(b) In case the nuclear incident occurs in the course of carriage of nuclear
material, either in one and the same means of transport, or, in the case of
storage incidental to the carriage, in one and the same nuclear installation
and causes nuclear damage which engages the liability of more than one
installation operator, the total liability shall not exceed the highest amount

32


applicable with respect to any one of them pursuant to Section 43 of this
Act; and

(©)__In neither of the cases referred to in paragraphs (a) and (b) of this
Section shall the liability of any one installation operator exceed the
amount established in Section 44 hereof.

Sec. 53. Operator of Several Installations. Subject to the provisions of Section
47, where several nuclear installations of one and the same installation operator are
involved in one nuclear incident, such installation operator shall be liable in respect
of each nuclear installation involved up to the amount applicable pursuant to Section
43.

Sec. 54. Carrier or Handler of Nuclear Material as Installation Operator. The
PARC, subject to such terms and conditions as it may by regulation or order
prescribe, designate a carrier of nuclear material or a person handling radioactive
waste, upon the carrier's request and with the consent of the installation operator
concerned, as installation operator in the place of the installation operator in respect
of such nuclear material or radioactive waste respectively. Upon such designation,
such carrier or such person shall be considered as an installation operator for the
purpose of this Section.

Sec. 55. Court Having Jurisdiction. The Regional Trial Court having jurisdiction
over the place where the nuclear incident occurs shall have jurisdiction to determine
claims for compensation for such nuclear damage under this Act.

Sec. 56. Intervention of PARC in Court Proceedings. When, after the
‘occurrence of a nuclear incident, it appears that the Government will have to pay
indemnity, the Court having jurisdiction over the claims for compensation arising
from the nuclear incident, shall allow the PARC, upon its petition, to intervene in the
proceedings with respect to technical issues, at any time before final judgment.

33


Sec. 57. Compulsory Processes. After the occurrence of a nuclear incident for
which it appears compensation may be payable under this Act, the PARC may adopt
such measures as may be appropriate to determine the persons who were or might
have been exposed to ionizing radiation resulting from such nuclear incident, which
measures may include a summons to such persons to submit themselves to
examination before such authority or body as shall be designated by the PARC within
three (3) months from the date of summons. In determining the amount of
damages or the right to recover damages, the Court may, in its discretion, take into
account the inexcusable failure of the claimant to fulfill or comply with the foregoing
obligation.

Sec. 58. Investigation of Nuclear Incidents. The PARC shall make an
investigation of the cause and extent of any nuclear incident for which it appears
compensation may be payable under this Act and its finding shall be made available
to the public, to the parties involved and to the Courts.

ARTICLE XIII
Transitory Provisions

Sec. 59. The Philippine Nuclear Research Institute.

(a) The regulatory function of the Philippine Nuclear Research Institute (PNRI)
is hereby transferred to the PARC;

(b) The development, promotion and use of nuclear energy for peaceful
applications shall remain the responsibility of the Institute, whereupon the
Director of the Institute shall, in coordination with the Department of
Budget and Management (DBM), draw up its new organizational structure
in accordance with the Civil Service Law, rules and regulations;

(c) The PNRI shall be the scientific nuclear organization in the country and
continue to function as one of the Research and Development Institutes of
the Department of Science and Technology, and continue its mandate to
foster nuclear research and development including nuclear safety research
pursuant to the objectives of Executive Order No. 128, series of 1987.

34


(d)

(e)

(

(a)

(b)

©

Under this Act, the PNRI shall be allowed to use 100% of its income to
augment and hire additional human resources and upgrade its facilities.
The regulatory functions of the PNRI which were inherited from the former
Philippine Atomic Energy Commission (PAEC) by virtue of Republic Act No.
2067, as amended by R.A. 3589 and Republic Act No. 5207, as amended
by P.D. 1484, Executive Order No.128 and Executive Order No.366 are
deemed transferred to the PARC.

All regulatory issuances such as regulations, rules, orders previously
established by the PNRI shall remain in force until superseded by the
PARC.

Sec. 60. The Center for Device Regulation, Radiation, Health and Research.

The regulatory functions of the Center for Device Regulation, Radiation,
Health and Research (CDRRHR) of the Department of Health (DOH) over
devices generating ionizing radiation by virtue of Republic Act No. 9711
otherwise known as “ The Food and Drug Administration Act of 2009’, are
deemed transferred to the PARC;

The administrative supervision of the CDRRHR shall remain with the DOH;
and

All regulations, rules, orders pertaining to ionizing radiation previously
established by the CDRRHR shall remain in force until superseded by the
PARC.

Sec. 61. Human Resources. All plantilla positions of the Nuclear Regulatory
Division of the PNRI-DOST are hereby transferred to the PARC. Thereafter, all
powers, functions and duties, records, files, and assets pertaining to regulation of
nuclear and radioactive materials and facilities of the PNRI shall be transferred to the
PARC. All plantilla positions of the Radiation Regulation Division of the Center for
Device Regulation, Radiation, Health and Research (CDRRHR) of the DOH which
have responsibilities solely in ionizing radiation regulation are also hereby transferred
to the PARC. Thereafter, all powers, functions and duties, records, files, and assets
of these organizational units shall be transferred to the PARC.

35


The Government Reorganization Act or Republic Act No. 6656 shall govern
the reorganization of the affected personnel of the Nuclear Regulatory Division of
PNRI and the Radiation Regulation Division of the CDRRHR.

There shall be no diminution of rank, salaries, allowances and benefits of all
personnel transferred to the PARC. In case of a difference in the above benefits
between the transferred employees of the two agencies, the higher amount shall be
adopted. New employees of the PARC shall be entitled to the same allowances and
benefits as the transferred employees.

The PARC shall draw up its organizational structure with the necessary
qualification requirements and standards in accordance with the Civil Service Law,

rules and regulations for evaluation and approval of the DBM upon submission to the
DBM.

Sec. 62. Magna Carta for Science and Technology Personnel. Qualified
employees of the PARC and its attached units shall be covered by Republic Act No.
8439, known as the Magna Carta for Scientists, Engineers, Researchers and other
science and technology personnel in the government.

Sec. 63. Signed Conventions. To take cognizant on the pending conventions
signed by the Philippine Government such as the Amendment to the Convention on
Physical Protection of Nuclear Materials, International Convention on the
Suppression of Acts of Nuclear Terrorism, Convention on Nuclear Safety and Joint

Convention on the Safety of Spent Fuel Management and on the Safety of
Radioactive Waste Management.

ARTICLE XIV
Penal Provisions

Sec. 64. Violation of Specific Provisions of the Act. Any person who willfully

violates, attempts to violate, or conspires to violate, any provision of Section 17 of
this Act shall upon conviction thereof, suffer the penalty of imprisonment of not

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more than five (5) years or a fine ranging from one million pesos (PHP.
1,000,000.00) to five million pesos (PHP 5,000,000.00) or both.

Sec. 65. Violation of Other Provisions of this Act. Any person who shall
willfully violate, attempt to violate, or conspire to violate any provisions of this Act
for which no penalty is specifically provided or of any regulation, order or
authorization issued under this Act shall, upon conviction thereof, suffer the penalty
of imprisonment of not more than two (2) years or a fine of not more than five
hundred thousand pesos (PHP 500,000.00) or both.

ARTICLE XV
Final Provisions

Sec. 66. Appropriations. The amount necessary to cover the initial
implementation of this Act shall be charged against the current year’s appropriations
of the Nuclear Regulatory Division of the PNRI and the Radiation Regulation Division
of the CDRRHR responsible in ionizing radiation regulation. Thereafter, such sums
as may be necessary for the continued implementation of this Act shall be included
in the annual General Appropriations Act.

In addition, the PARC is authorized to receive contributions, grants, bequests,
contributions and donations, in cash or in kind, whether from local of foreign
sources: Provided, that acceptance of grants, bequests, contributions and donations
from foreign government shall be subject to the approval of the President of the
Philippines upon the recommendation of the Commissioner of the PARC and the
Secretary of the Department of Foreign Affairs (DFA).

Sec. 67. Implementing Rules and Regulations. The PARC, in consultation with

the DOST, DBM and the CSC shall issue within one hundred eighty (180) days, the
rules and regulations necessary to implement the provisions of this Act.

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iz

Sec. 68. Repealing Clause. If found inconsistent with this Act, The pertinent
provisions of Republic Act No. 2067 as amended by RA3589 , otherwise known as
the cience Act of 1958, Republic Act No. 5207 as amended by PD1484, otherwise
known as the Atomic Energy Regulatory and Liability Act of 1968, Republic Act No.
9711 otherwise known as the Food and Drug Administration Act of 2009, Executive
Order No. 128 Series of 1987 on Reorganizing the National Science and Technology
Authority are hereby repealed. All other laws, executive orders, proclamations, rules,
regulations, and other issuances or parts thereof which are inconsistent with the
provisions of this act are hereby repealed, or amended accordingly.

Sec. 69. Separability Clause. If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not otherwise affected shall remain

in full force and effect.

Sec. 70. Effectivity. This Act shall take effect fifteen (15) days from its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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