HOUSE OF REPRESENTATIVES

RECEIVED
SEVENTEENTH CONGRESS OF THE REPUBLIC) owe 22 al 2096
OF THE PHILIPPINES ) INE: yy]
First Regular Session ) we ay
HOUSE OF REPRESENTATIVES pp iug—

H.B.No.

Introduced by Representative Harry L, Roque Jr.

AN ACT
AUTHORIZING LOCAL GOVERNMENT UNITS TO APPLY THE SHARE OF THE
PROCEEDS EARNED FROM THE DEVELOPMENT AND UTILIZATION OF
HYDROTHERMAL, GEOTHERMAL, AND OTHER SOURCES OF ENERGY FOR
ELECTRIFICATION OF OTHER AREAS WITHIN THE PROVINCE
WHERE THE SOURCE OF ENERGY IS LOCATED AMENDING FOR THE PURPOSE
SECTION 294 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991
EXPLANATORY NOTE
Presidential Decree No. 269, as amended otherwise known as the Rural Electrification
Decree was issued in 1973 with the objective of attaining total electrification of the entire
Philippines. However, it has already been more than two (2) decades now since the
electrification program was launched, yet, there are still numerous areas in the countryside which
do not have a supply of electricity. The national government has a perennial funding problem
and therefore local government units, if only to pursue the objective of the law, must be given
reasonable discretion to tap any available sources of funding to enable them to collaborate with
the national government in such kind of worthy undertaking for the benefit of the poor people,
particularly in remote areas. This kind of undertaking however, may not be possible due to the

existence of a provision in the Local Government Code which provides restrictions on how the

share of local government units will be spent.


Section 294 of the Local Government Code expressly limits the use of the share of the
proceeds derived from the development and utilization of sources of energy to the reduction of
the cost of electricity in the area where such a source is located. If the number of population is
considered, the application of the proceeds to lower the cost of electricity will be negligible,
particularly in densely populated areas, but the amount may be sufficient to finance the
electrification of other areas within the province where the source of energy is located.

The local government units are supposed to be in a better position to determine the needs
of their constituents and what is best for them. However, local government units are severely
restrained to exercise their best option due to the existence of the aforementioned provision in
the Code which dictated upon them what to do with their own money. This system runs counter
to the attainment of local autonomy. A curative legislation therefore that will allow local
government units to use the share of the proceeds derived from the development and utilization
of various sources of energy as intended in this bill is highly recommended. This is a Senate

counterpart bill to one filed in the House of Representatives by Rep. Emilio C. Macias II.!

uU“y

HARRY L. ROQUE JR.

' This bill was originally filed by during the Fifteenth Congress, First Regular Session, and refiled in the
Senate by Senator Miriam Defensor Santiago during the Sixteenth Congress, Third Regular Session.

2


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

HOUSE OF REPRESENTATIVES,

HB.No._ 3183

Introduced by Representative Harry L. Roque Jr.

AN ACT
AUTHORIZING LOCAL GOVERNMENT UNITS TO APPLY THE SHARE OF THE
PROCEEDS EARNED FROM THE DEVELOPMENT AND UTILIZATION OF
HYDROTHERMAL, GEOTHERMAL, AND OTHER SOURCES OF ENERGY FOR
ELECTRIFICATION OF OTHER AREAS WITHIN THE PROVINCE
WHERE THE SOURCE OF ENERGY IS LOCATED AMENDING FOR THE PURPOSE
SECTION 294 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL.
GOVERNMENT CODE OF 1991

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

1 SECTION 1. Section 294 of Republic Act No. 7160, otherwise known as the Local

2 Government Code of 1991, is hereby amended to read as follows:

3 SECTION 294. Development and Livelihood Projects. - The proceeds
4 from the share shall be appropriated by their respective sanggunian to finance
5 local development and livelihood projects: Provided, however, that at least eighty
6 percent (80%) of the proceeds derived from the development and utilization of
7 hydrothermal, geothermal and other sources of energy shall be applied [solely]
8 FOR ELECTRIFICATION OF OTHER AREAS WITHIN THE
9 PROVINCE OR to lower the cost of electricity in the local government unit

10 where such a source of energy is located."


SECTION 2. Repealing Clause. ~ All laws, decrees, orders, and issuances, or portions
thereof, which are inconsistent with the provisions of this Act, are hereby repealed, amended or

modified accordingly

SECTION 3. Effectivity Clause. —This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,