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

Seventeenth Congress
Third Regular Session

House Bill Number__8723 _

Introduced by Rep. Dakila Carlo E. Cua

AN ACT STRENGTHENING THE PROTECTION, CONSERVATION,
MANAGEMENT, AND DEVELOPMENT OF WATERWAYS AND WATER
SYSTEMS BY HOST COMMUNITIES, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill seeks to strengthen the capability of Local Government Units to
protect, conserve, manage, and develop water, land, and other resources that relate
to hydroelectric generation.

Hydroelectric generation is unique from other methods of power generation as
it relies heavily on a renewable resource that is also a public good. The management
of flowing water is not limited to the location of the hydroelectric generation facility. It
begins at the point of origin of the waterway and includes its surrounding areas.

A coordinated effort at the local government level, supported by direct access
to funding is necessary to allow continued reliance on flowing water as a source of
energy.

In order to secure the welfare of future generations, passage of this measure
is earnestly sought.

DAKI (RLO ENRIQUEZ CUA


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

Seventeenth Congress
Third Regular Session

House Bill Number__8723

Introduced by Rep. Dakila Carlo E. Cua

AN ACT STRENGTHENING THE PROTECTION AND MANAGEMENT OF
WATERWAYS AND WATER SYSTEMS BY HOST COMMUNITIES, AND FOR
OTHER PURPOSES

SECTION 1. Host Community — The term “Host Community’ as used or referred to in
Republic Act No. 7160, otherwise known as the Local Government Code; Republic
Act No. 7638, otherwise known as the Department of Energy Act of 1992; and
Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act
are respectively amended to mean as follow:

a) With respect to hydroelectric generation facilities, the host community shall
include the province, city, municipality, and barangay, as applicable, where
the hydroelectric generation facility is located;

b) With respect to hydroelectric energy resources, the host community shall
include the province, city, municipality, and barangay, as applicable, where
the hydroelectric energy resources are located, beginning at the point of
origin of the waterway or water system and terminating at the point where
the hydroelectric generation facility concerned is located.

SECTION 2. integrated Water System Management Committee — There shall be an
Integrated Water System Management Committee in charge of coordinating
protection, conservation, management, and development of water, land, and related
resources with respect to the hydroelectric energy resources for a given
hydroelectric generation facility.

The Committee shall be composed of Chief Executives of the various Local
Government Units that serve as host communities to the hydroelectric energy
resources for a given hydroelectric generation facility.

The Committee shall maintain a close working relationship with the various national
government agencies to avoid replication in the protection, conservation,
management, and development of related resources.

SECTION 3. Financial Benefit - Host communities shall enjoy a financial benefit of
one-centavo per kilowatt-hour (P0.01/kWh) of the electricity sales of hydroelectric
generation facilities. The application of the financial benefit shall be as follows:


a) Protection, Conservation, Management and Development of Natural
Resources — A total of 50% of one-centavo per kilowatt-hour (P0.005/kWh)
equally divided to host communities as follows:

a. Provinces — 25% of one-centavo per kilowatt-hour (P0.0025/kWh)

b. City/Municipality — 12.5% of one-centavo per kilowatt-hour
(P0.00125/kWh)

c. Barangays - 12.5% of one-centavo per kilowatt-hour
(P0.00125/kWh)

b) Electrification Fund — A total of 25% of one-centavo per kilowatt-hour
(P0.0025/kWh) equally divided to host communities as follows:

a. Provinces - 12.5% of one-centavo per __kilowatt-hour
(P0.00125/kWh)

b. City/Municipality - 6.25% of one-centavo per kilowatt-hour
(P0.000625/kWh)

c. Barangays - 6.25% of one-centavo per kilowatt-hour
(P0.000625/kWh)

c) Development and Livelihood Fund — A total of 25% of one-centavo per
kilowatt-hour (P0.0025/kWh) equally divided to host communities as
follows:

a. Provinces - 12.5% of one-centavo per _kilowatt-hour
(P0.00125/kWh)

b. City/Municipality - 6.25% of one-centavo per kilowatt-hour
(P0.000625/kWh)

c. Barangays - 6.25% of one-centavo per kilowatt-hour
(P0.000625/kWh)

Hydroelectric generation facilities shall directly remit the share of each host
community to their respective local government units.

SECTION 4. Separability Clause. — If any of the sections or provisions of this Act is
held invalid, all other provisions not affected thereby shall remain valid.

SECTION 5. Implementing Rules and Regulations. - The DENR, DOE, and NEDA
shall promulgate the rules and regulations to effectively implement this Act.

SECTION 6. Repealing Clause. — All Laws, Decrees, Executive Orders, Rules and
Regulations or parts or provisions thereof that are not consistent with this Act are
hereby repealed, amended, or modified accordingly.

SECTION 7. Effectivity. - This Act shall take effect Fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,