EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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(0K:cf u( liji- £»f.;.ftarp
SENATE
Senate Bill No. 1296
In substitution of Senate Bill No. 172
20 
JAN 27 
P2:11
R E U ; .. D B
Prepared and submitted jointly by the Committees on Energy, Science and 
Technology, Ways and Means, and Finance with Senator Gatchalian as author thereof
AN ACT
ESTABLISHING THE PHILIPPINE ENERGY RESEARCH AND POLICY 
INSTITUTE, DEFINING ITS OBJECTIVES, POWERS, AND FUNCTIONS, 
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
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Section 1. 
Title. This Act shall be known as the "Philippine Energy Research
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and Policy Institute Act".
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Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to
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ensure energy security, equity, and sustainability. Towards this end, it is also the
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policy of the State to
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a) Enhance knowledge in recent developments and scientific breakthroughs in
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the field of energy;
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b) Identify key policy areas, issues, and challenges in the country's energy
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sector; and
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c) Formulate multidisciplinary research-based policies and strategies for the
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cost-effective use of energy resources towards environmentally-sound
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energy development.


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Sec. 3. Establishment o f the Philippine Energy Research and Policy Institute. - 
Pursuant to the national policy of enhancing the country's capability for energy 
research and policy development, there is hereby established in the University of the 
Philippines (UP), a Philippine Energy Research and Policy Institute, hereinafter referred 
to as the Institute. The Institute shall be under the Office of the UP President.
Sec. 4. Objectives o f the Institute. -  The objectives of the Institute are:
a) To conduct pertinent multidisciplinary energy research and policy development 
on energy issues;
b) To promote collaborative and multidisciplinary energy research and policy 
development among government agencies, the academe, and other public and 
private stakeholders;
c) To maintain its independence and to ensure research endeavors shall not be 
influenced or constrained by political affiliations, technological bias, or other 
presuppositions;
d) To ensure the coordination and timely dissemination of results to key 
government agencies to guide policy and decision-making processes;
e) To provide timely technical assistance to the government on energy issues 
needing policy direction and advice;
f) To provide strategic assistance to the government on energy policy issues and 
other related matters;
g) To establish mechanisms for the dissemination and utilization of research and 
policy development outputs;
h) To create and administer training programs and provide fellowship grants 
intended to build the capacity of government agencies, the academe including 
graduate and post-graduate students, and public and private energy 
stakeholders; and
i) To serve as a medium in bringing together local and international experts in 
the field of energy through local and international linkages.


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Sec. 5. Functions and Powers o f the Institute. -  The Institute shall:
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a) Formulate and conduct research and development on energy, energy
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technology, public policy issues in energy markets, and other pressing issues
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and problems including the environment and health impacts of energy policies
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and programs, all backed by rigorous empirical evidence;
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b) Establish linkages with government agencies, other universities, and private
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and public institutions on existing energy research and policy studies;
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c) Establish research and policy development programs and capacity-building
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trainings on energy;
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d) Provide common research support facilities and maximize the utilization of its
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expert support staff;
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e) Enhance the masters and doctoral pool of researchers and faculty in the field
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of energy;
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f) Establish local and foreign linkages in energy research and policy development;
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g) Serve as the repository of all energy-related researches, studies, and data
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generated by the Institute and other academic, public, and private groups,
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organizations, and institutions;
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h) Propose and allocate its annual budgetary resources and optimize resource
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generation and utilization;
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i) Invest its funds in such undertaking as it may deem wise or necessary to carry
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out its objectives, with due consideration to pertinent laws, rules, regulations,
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and existing guidelines on investing government funds in coordination with the
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Bureau of Treasury; and
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j) Receive and manage grants, aid, donations or any kind of assistance for
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achieving its objectives, in accordance with the rules and regulations of UP.
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The UP President, upon recommendation of the Executive Board, may give 
additional powers and functions to the Institute: Provided, That it shall be in 
accordance with the objectives of the Institute as stated in this Act.
Sec. 6. Organizational Structure. -  The Executive Director shall head the 
Institute and shall report to the UP President. The Institute's research and policy


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direction and priorities shall be determined by an Executive Board and implemented
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by the Executive Director.
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Sec. 7. The Executive Director. -  The Executive Director shall be a recognized
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expert in energy research and policy development with at least three (3) years'
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experience in energy, shall have a strong organizational management background,
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and shall serve as such in full-time capacity. The UP President shall appoint the
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Executive Director upon the recommendation of the Executive Board sixty calendar
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(60) days after the effectivity of the implementing rules and regulations of this Act:
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Provided, That such Executive Director shall serve for a term of five (5) years which
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can be renewed for another five (5) years.
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Upon assumption, the Executive Director shall:
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a) Publicly disclose any previous employment, consultancy, or any connection
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with, and any pecuniary interest in any energy industry participant;
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b) Divest of any and all interest in any energy industry participant; and
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c) Terminate employment or consultancy with any energy industry participant.
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Sec. 8. Functions and Powers o f the Executive Director. 
-  The Executive
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Director of the Institute shall:
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a) Implement and enforce research and policy direction and priorities determined
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by the Executive Board;
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b) Exercise administrative 
and 
supervisory functions 
over the 
planning,
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implementation, and evaluation of the policies, programs, and projects of the
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Institute;
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c) Recommend to the UP President, upon endorsement of the Executive Board,
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the following:
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i) 
Organizational 
structure of the Institute including the 
position
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classification and compensation of employees subject to Section 11 of
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this Act,
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ii) 
Appointment of research fellows, officers, and employees of the
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Institute: Provided, That the pool of research fellows shall include


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experts and researchers from diverse disciplines, public and private
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universities, and other research institutions, and
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iii) 
Overail budget of the Institute;
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d) Submit to the UP President, upon endorsement of the Executive Board, regular
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reports on the Institute to include annual reports on operations, status of
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programs and projects, and the financial condition of the Institute;
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e) Quarterly apprise the Executive Board on the programs and projects of the
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Institute;
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f) Within the limits of the authority delegated to the Executive Director by the UP
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President, execute contracts, incur obligations, acquire and dispose of assets,
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and deliver documents on behalf of the Institute;
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g) Not engage in any act that may result to a conflict of interest with the
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objectives, functions, and powers of the Institute; and
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h) Exercise and perform such other powers, functions and duties as may be
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authorized or assigned by the UP President, upon recommendation of the
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Executive Board and in accordance with the objectives of this Act.
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Sec. 9. Executive Board o f the Institute. -  There shall be an Executive Board of
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the Institute to be composed of seven (7) members with at least one (1)
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representative each from the fields of engineering, law, science, statistics, economics,
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and public health, either from the academe or the private sector: Provided, That five
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(5) members shall come from the academe and two (2) members shall come from the
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private sector. 
The members of the Executive Board shall be chosen by the UP
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President. Each member shail have a term of three (3) years, which can be renewed
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for another three (3) years: Provided, That the first two (2) appointees from the
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academe and the first appointee from the private sector shall have a term of two (2)
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years, which can be renewed for another three (3) years. Any person appointed to
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replace a member who has resigned, died, or removed for cause shall serve only the
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unexpired portion of the term of the member replaced. The Executive Board shall be
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headed by a Chairperson, who shall be selected by the members among themselves:
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Provided, That the Chairperson shall come from the academe.


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Sec. 10. Functions and Powers o f the Executive Board. -  The Executive Board
shall:
a) Determine the general direction and priorities of the Institute in accordance 
with this Act;
b) Determine research and policy areas for study and investigation by the Institute 
based on its evaluation of the energy policy landscape including the needs and 
demands of the country and the people;
c) Provide advice to the Institute on any matter relating to the development of a 
research or policy area and the administration of research and policy programs;
d) Endorse to the UP President the following:
i) Organizational structure of the Institute including position classification and 
compensation of employees subject to Section 11 of this Act, in coordination 
with the Department of Budget and Management,
ii) Appointment of research fellows, officers, and employees of the Institute: 
Provided, That the pool of research fellows shall include experts and 
researchers from diverse disciplines, public and private universities, and other 
research institutions,
iii) Institute's overall budget;
e) Generate resources and obtain logistical and financial support for the programs 
and component units of the Institute: Provided, That in so doing, no conflict- 
of-interest exists with the objectives of this Act and the functions of the 
Institute;
and
f) Recommend to the UP President additional powers, functions, and duties of the 
Executive Director in accordance with the objectives of this Act.
Sec. 11. Appointment o f Facuity and Staff. -  The human resource complement 
of the Institute shall be organized and set-up by the Executive Director subject to 
Sections 8 (c)(i) and 10 (d)(i) of this Act and, the existing rules and regulations of UP.


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Sec. 12. Public Access. -  The Institute shall make available to the public its 
research papers, data, and other resources by posting these on its website: Provided, 
That the posted materials shall be in accordance with Section 13 of this Act, its 
implementing rules and regulations, and other existing laws, rules, and regulations.
Sec. 13. Confidentiality.-Ihe Institute shall not post or disclose any proprietary 
or confidential data and other resources unless prior consent of the source or owner 
of such data and resources has been obtained by the requesting party.
Sec. 14. Special Account for Energy Research. -  A Special Account in the 
General Fund (SAGF) for energy research, which shall be maintained and managed by 
the Bureau of Treasury, shall be established to support the research undertaken by 
the Institute. 
The SAGF for energy research shall recognize and accept grants, 
contributions, and donations collected for energy research and from income accruing 
from the operations of the Institute, for purposes of executing its mandate and 
functions: Provided, That in so doing, no conflict-of-interest exists with the objectives 
of this Act and the functions of the Institute.
One half (1/2) of one percent (1%) of the current and future years' collections 
from all fees, revenues, and receipts from any and all sources including receipts from 
service contracts and agreements such as application and processing fees, signature 
bonus, 
discovery 
bonus, 
production 
bonus; 
all 
money 
collected 
from 
all 
concessionaires, representing unspent work obligations, fines, and penalties under the 
Petroleum Act of 1949; and the government share representing royalties, rentals, 
production share on service contracts and similar payments on exploration, 
development, and exploitation of energy resources forming part of the special fund 
under Section 8 of Presidential Decree No. 910, Creating an Energy Development 
Board, shall form part of the SAGF for energy research at the time of the effectivity of 
this Act and every year thereafter.
Sec. 15. Appropriations. 
For the organizational and operational requirements 
of the Institute, there is hereby appropriated out of the General Appropriations Act, 
the sum of One Hundred Million Pesos (PlOO, 000,000.00) for the initial operating


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fund of the Institute. 
Thereafter, such amounts necessary for the sustainable 
operations of the Institute shall be appropriated from the General Appropriations Act 
based on the annual financial plan approved by the UP President and submitted to the 
DBM.
Sec. 16. Tax Exemptions. -  The Institute shall be entitled to all the tax 
exemptions enumerated under Section 25 of Republic Act No. 9500, otherwise known 
as the University of the Philippines Charter of 2008, as amended by Republic Act No. 
10963, otherwise known as the Tax Reform for Acceleration and Inclusion Act.
Sec. 17. Implementing Rules and Regulations. -  Within sixty (60) calendar days 
from the effectivity of this Act, the University of the Philippines subject to the approval 
of the Board of Regents, shall promulgate the necessary implementing rules and 
regulations of this Act.
Sec. 18. Separability Clause. -  If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect.
Sec. 19. Repealing Clause. -  Any law, presidential decree or issuance, executive 
order, letter of instruction, rule or regulation inconsistent with the provisions of this 
Act is hereby repealed or modified accordingly.
Sec. 20. Effectivity. -  This Act shall take effect fifteen (15) days following its 
complete publication in the Official Gazette or a newspaper of general circulation.
Approved,