SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 8 '77 
INTRODUCED BY SEN. 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 part: 
"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. " 
The Bicol region, which provides a considerable amount of the power 
requirem'ents 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 objective of this bill is the attainment of the same power rate 
for residential household in the entire Sicol Region with that 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 Sicol 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 ofa separate grid may 
be done by the Secretary of Energy (see Sec. 8 (e) of the Department of Energy 


Act of 1992), the magnitude and scope or equitable preferential benefits to be 
granted to the Sicol 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. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. VI If'" 
'. ' ' 
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\, 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
CREATING THE BICOl POWER GRID TO ENSURE THE GRANT OF 
EQUITABLE PREFERENTIAL BENEFITS TO REGIONS HOSTING RELIABLE 
AND CHEAP GEOTHERMAL POWER AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. -.This Act shall be known as the "Sicol Power 
Act of 2013". 
SEC. 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, 
SEC. 3. Creation of the Sicol Power Grid. - The President, through the 
Department of Energy, is hereby authorized to ensure the efficient and 
expeditious formation and creation of the Sicol 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, 
SEC. 4. Health Care Subsidies. - A ten percent (10%) sinking fund shall 
be deducted from all revenues of the National Power Corporation (NAPOCOR) in 
the Sicol 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 (60%) 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 treasurer have full access to all 
NAPOCOR accounts in the region for immediate availment of said funds. 
SEC. 5. Environmental Rehabilitation 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 facilities in support of the energy 
needs of the nation. 


SEC. 6. Implementing Rules and Regulations. - The Department of 
Energy in consultation with the Department of Health and the Department of 
Environment and Natural Resources shall promulgate the pertinent rules and 
regulations necessary to implement the provision of this Act. 
SEC. 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. 
SEC. 8. Repealing Clause. - .AII laws, decrees, orders, rules and 
regulation, or portion thereof, inconsistent with this Act are hereby repealed or 
modified accordingly. 
SEC. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) national newspapers of general circulation. 
Approved,