THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
FIRST REGULAR SESSION 
1 
1 
1 
SENATE 
.
I
 
S.B. No, 
1823 
Introduced by JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 7, Article 10 of the Constitution provides that: “Local government shall be 
entitled to an equitable share in the proceeds of the utilization and development of the 
national wealth within their respective areas, in the manner provided by law, including 
sharing the same with the inhabitants by way of direct benefits. ”While Section 18 of the 
Local Government Code of 1991 reads in par: “Local government units shall have the 
power and authority x x x to have an equitable share in the proceeds from the utilization 
and development of the national wealth and resources within their respective territorial 
jurisdictions including sharing the same with the inhabitants by the way of direct 
benefits, x x x and to apply their resources and assets for productive, development or 
welfare purposes in the exercise or furtherance of their government or propriety 
powers and functions and thereby ensure their development into self-reliant 
communities and active participants in the attainment of national goals.” 
In view of the abovementioned constitutional provision, the Bicol region, which 
provides a considerable amount of the power requirements of Luzon grid including 
Metro Manila and its environs and, as a consequence of it, shoulders the environmental 
cost of power generation, must be given an equitable share in the utilization of the 
natural resources 
located thereat and enough latitude and applying these resources 
for its own welfare and development purposes. 
The primary objectives of this bill is the attainment of the same power rate for 
residential household in the entire Bicol Region with thaf rate of power being applied to 
residential households in Metro Manila The long-term goal is cheaper power rates for all 
as more geothermal facilities are activated in the region to service the energy 
requirements of other regions. 
The secondary objectives are (1) to provide sufficient health care subsidies for 
localities within the Bicol Region especially damaged and prejudiced by the highly toxic 
effluent 
of 
the 
power 
generation 
facilities 
situated 
in 
their 
respective 
municipalities/provinces through direct percentage allocation of at least ten percent 
(10%) of the gross revenues earned by the National Power Corporation in the Bicol 
Region and (2) to provide sufficient funding for the restoration and rehabilitation of the 
environment and prevention of natural calamities brought about by the power 
generation activities of companies and corporations operating in the region. 


Although the creation of a separate grid may be done by the Secretary of Energy 
[ see Sec. 8 (e) of the Department of Energy Act of 19921, the magnitude and scope or 
equitable preferential benefits to be granted to the Bicol Region necessitate a legislative 
action in order to fully and comprehensively translate this laudable intent into practical 
reality . 
In view of the foregoing considerations, early passage of this measure is 
earnestly requested. 
J Senator 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
FIRST REGULAR SESSION 
1 
I 
\, 
SENATE 
S.B. NO. 
1623 " 
Introduced by JINGGOY EJERCITO ESTRADA 
AN ACT 
CREATING THE BlCOL POWER GRID TO ENSURE THE GRANT OF EQUITABLE 
PREFERENTIAL BENEFITS TO REGIONS AND HOSTING RELIABLE AND CHEAP 
GEOTHERMAL POWER AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of the Representative of the Philippines in 
Congress assembled. 
SECTION 1. Short Tifle. -.This Act shall be known as the "Bicol Power Act of 
2004". 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
State to grant equitable preferential benefits to regions of the country producing cheap 
geothermal power, in support of the growing energy requirements of the nation. 
SECTION 3. Creafion of the Bico/ Power Grid. - The President, through the 
Department of Energy, is hereby authorized to ensure the efficient and expeditiuous 
formation and creation of the Bicol Power Grid, separate and distinct from the Luzon 
Power Grid, guaranteeing to the people in the region equal power rates with the 
residential households in Metro Manila and eventually, cheaper power rates, depending 
on the increasing number of geothermal facilities operating in the region. 
SECTION 4. Healfh Care Subsidies. - A ten percent (10%) sinking fund shall 
be deducted from all revenues of the National Power Corporation (NAPOCOR) IN THE 


Bicol Region, to finance health care programs for residents and communities directly 
affected by the effluent of the geothermal facilities: Provided, that the municipalities 
shall have a sixty percent 160%) share of the said subsidies, with the remaining forty 
percent (40%) being given to the province as the case may be: Provided further, that 
the local government treasure have full access to all NAPOCOR accounts in the region 
for immediate availment of said funds. 
SECTION 5. Environmental Rehabilifafion Fund. - A five percent (5%) 
environmental rehabilitation fund to be taken from the national gross revenues of the 
Philippines Amusement and Gaming Corporation (PAGCOR), per annum, shall likewise 
be created to reduce the ecological harm, dislocation and damage to all regions hosting 
cheap geothermal power facifities in support of the energy needs of the nation. 
SECTION 6. Implementing Rules and Regulations. - The Department of 
Energy shall promulgate the pertinent rules and regulations necessary to implement the 
provision of this Act. 
SECTION 7. Separability Clause. - If for any reason, any provision of this Act 
is declared unconstitutional or invalid, other parts or provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SECTION 8. Repealing Clause. - .All laws, decrees, orders, rules and 
regulation, or portion thereof, inconsistent with this Act are hereby repealed or modified 
accordingly. 
SECTION 9. Eflecfivify Clause. - This Act take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved,