Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" Congress
3™ Regular Session

HOUSE BILL NO. 233

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO

EXPLANATORY NOTE

The 1987 Constitution provides that the exploration, development, and utilization of
natural resources shall be under the full control and supervision of the State.

Solar power is a naiural source of clean yreen eleciticity tral is either created from sunlight
or from heat from the sun. It is a renewable energy source that can be replenished naturally. The
use of this renewable energy source is also a great way to adopt with the increasing price of fuel
and the damaging effects of pollution since it does not produce any harmful emissions. With the
given benefits, the State shall develop and utilize this renewable energy source under its control
and supervision by providing an enabiing iegisiation.

Thus, the purpose of this bill is to provide a grant for Solar Para Sa Bayan Corporation a
franchise to construct, install, establish, operate, and maintain distributable power technologies
and mini-grid systems throughout the Philippines in order to improve access to sustainable energy
source.

In view thereof, the early passage of this proposed measure is highly recommended.

“KUYA” JOS! iTONIO R. SY-ALVARADO.

Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17* Congress
3" Regular Session

HOUSE BILL-NO, 8499

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT
GRANTING SOLAR PARA SA BAYAN CORPORATION A FRANCHISE
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN
DISTRIBUTABLE POWER TECHNOLOGIES AND MINIGRID SYSTEMS
THROUGHOUT THE PHILIPPINES TO IMPROVE ACCESS TO
SUSTAINABLE ENERGY

Be it adopted by the Senate and the House of Representatives of the Philippines in
Congress assembles:

SECTION 1. Nature and Scope of Franchise. — Subject to the provisions of the
Constitution and applicable laws, rules and regulations, there is hereby granted to Solar
Para Sa Bayan Corporation, hereunder referred to as the grantee, its successors or
assignees, a franchise to construct, install, establish, operate and maintain in the public
interest and for commercial purposes, Distributable Power Technologies (DPTs) and
Minigrid Systems to provide electric power to customers and end-users throughout the
Philippines. Likewise, the grantee is authorized to engage in ancillary businesses and any
related business which maximize the utilization of its assets. The grantee shall have the
right to open and non-discriminatory access to any transmission or distribution system, and
shall be eligible to become a member of the wholesale electricity spot market, subject to
compensation and existing regulations.

Distributable Power Technologies refer to devices, assets, facilities and other
technologies of any capacity that may connect directly to consumers or end-users, or
interconnect with transmission or distribution system or Minigrid Systems, such as but not
limited to rooftop or ground-mounted solar panels, wind turbines, hydrogen fuel cells, back
up gensets, hybrid power systems, wires, controllable loads, metering, communication
equipment, electric vehicle charging stations, and energy storage.


Minigrid System refers to an integrated group loads and devices, assets, facilities and
other technologies of any capacity. including DPTs, that may operate either independently
from or in conjunction with transmission or distribution systems or other Minigrid Systems,
and is distinct from a distribution system or a generation facility.

Minigrid Company refers to any person or entity which constructs, installs, establishes,
operates and maintains Minigrid Systems or DPTs; may sell, purchase or trade electric
power with customers or end-users, and is distinct from a distribution utility or a generation
company.

SECTION 2. Manner of Operation of Facilities. — All facilities, lines and systems for
renewable energy services owned, maintained, operated, or managed by the grantee, its
successors or assignees, shall be operated and maintained at all times in the proper and
suitable manner. Whenever practicable and for purposes of maintaining order, safety and
aesthetics along highways, roads, streets, alleys, or right-of-way, the grantee may allow the
use of free spaces in its poles, facilities, or right-of-way by interested parties upon
reasonable compensation to the grantee considering costs incurred to accommodate and
administer the use of the grantee’s facilities by such parties.

SECTION 3. Ingress and Egress, Excavation and Restoration Works. — For the
purpose of constructing, installing, establishing, operating and maintaining poles, DPTs,
Minigrid Systems, or any part thereof and other supports for wires or other conductors for
the laying and maintaining of underground wires, cables, pipes or other conductors, the
grantee, its successors or assignees, is authorized to make excavations or lay conduits in
any of the public places, roads, highways, streets, lanes, municipalities, subject to prior
approval of the Department of Public Works and Highways (DPWH) or to Local
Government Units (LGU) concerned: Provided, however, That any public place, road,
highway, street, lane, alley, avenue, sidewalk, tunnel, or bridge disturbed, altered, or
changed by reason of erection of poles, DPTs, Minigrid Systems, or any part thereof or
other supports or the underground laying of wires, other conductors or conduits, shall be
repaired or replaced in workmanlike manner at the expense of the grantee, its successor or
assignees, in accordance with standards set by DPWH or the LGU concerned. Should the
grantee, its successors or assignees, after fifteen (15)-day notice from the said authority,
fail, refuse, or neglect to repair or replace any part of public place, road, highway, street,
lane, alley, avenue, sidewalk, or bridge disturbed, altered, or changed by the said grantee,
its successors or assignees, then the DPWH or the LGU concemed shall have the right to
have the same repaired or replaced in good order and condition and charge the grantee, its
successor or assignees at double the amount of the costs and expenses for such repair or
replacement.


SECTION. 4. Responsibility to the Public. - The grantee shall operate DPTs and
Minigrid Systems in the least cost manner. In the interest of the public good and as far as
feasible, the grantee shall modify, improve, or change its facilities and equipment for the
purpose of providing efficient and reliable services to all types of consumers in order that
business and industries shall be able to compete.

SECTION 5. Rates for Services. — To achieve efficient service for its customers and
end-users, the grantee shall be authorized to charge rates equal to or lower than the average
ERC-approved distribution retail supply rates for the preceding year of the distribution
utility with the capacity closest to the grantee’s Minigrid System

SECTION 6. Protection of Consumer Interests. ~The herein grantee shall establish a
consumer desk that will handle consumer complaints and ensure adequate protection of
consumer interests. The grantee shall act with dispatch on all complaints brought before it.

SECTION 7. Right of the Government. — A Special right is hereby reserved to the
President of the Philippines, in time of war, rebellion, public peril, calamity, emergency,
disaster or disturbance of peace and order, to temporarily take over and operate the facilities
of the grantee or to authorize the temporary use and operation thereof by an agency of the
government upon due compensation to the grantee for the use of said facilities during the
period when they shall be so operated.

SECTION 8. Right of Eminent Domain. — Subject to the limitations and procedures
prescribed by law, the grantee is authorized to exercise the right of eminent domain insofar
‘as it may be reasonably necessary for the construction, installation, establishment, and
efficient operation and maintenance of DPTs or Minigrid Systems. The grantee is
authorized to install and maintain its poles, wires, and other facilities over and across public
property, including streets, highways, forest reserves, and other similar property of the
Government of the Philippines, its branches, or any of its instrumentalities. The grantee
may acquire such private property as is needed for the realization of the purposes for which
this franchise is granted, including property already devoted to public use or with public
character. Provided, this will result in greater benefit for the public. Provided, further. That
the proper condemnation proceedings shall have been instituted and applicable rules shall
have been complied with.

SECTION 9. Term and Franchise. — This franchise shall be for a term of twenty-five
(25) years from the date of effectivity of this Act, unless sooner cancelled or revoked. This
franchise shall be deemed ipso facto revoked in the event that the grantee fails to operate
continuously for two (2) years.

SECTION 10. Warranty in Favor of the National and Local Governments. — The
grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of accidents that


cause injury to persons and damage to properties, during the construction, installation,
operation, and maintenance of the lines for electric services of the grantee.

SECTION 11. Liability for Damages. — The grantee shall be liable for any injury to
persons and damage to property arising from or caused by accident to persons by reason of
any defective construction under this franchise or of any neglect or omission to keep its
poles and wires in safe condition.

SECTION 12. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. — The
grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the
rights and privileges acquired thereunder to any person, firm, company, corporation or other
commercial or legal entity, nor merge with any other corporation or entity, nor transfer the
controlling interest of the grantee, whether as a whole or in part, and whether simultaneously
or contemporaneously, to any person, firm, company, corporation, or entity, unless to a
wholly-owned subsidiary of the grantee or where the grantee is the surviving corporation:
Provided, that any such transfer, sale or assignment is in accordance with the constitutional
limitations, Any person or entity to which this franchise is sold, transferred or assigned shall
be subject to the same conditions, terms, restrictions and limitations of this Act.

SECTION 13. Compliance with Labor Standards. — The grantee, its successors or
assignees shall comply with the applicable labor standards under existing labor laws, rules,
and regulations and such other issuances as may be promulgated by the Department of Labor
and Employment, taking into consideration the nature and peculiarities of the electric power
industry.

SECTION 14. Reportorial Requirement. — The grantee shall submit an annual report to
the Congress of the Philippines, through the Committee on Legislative Franchises of the
House of Representatives and the Committee of Public Services of the Senate, on its
compliance with the terms and conditions of the franchise and on its operations on or before
April 30 of the succeeding year.

The annual report shall include an update on the roll-out, development, operation and/or
expansion of business; audited financial statements; latest General Information Sheet
officially submitted to SEC (if applicable); certification of the DOE on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

A reportorial compliance certificate issued by Congress shall be required before any
application for permit of certificate is accepted by the DOE.

SECTION 15. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five Hundred Pesos (P500.00) per working day of
noncompliance. The fine shall be collected by the DOE from the delinquent franchise


grantee separate from the reportorial penalties imposed by the DOE and the same shall be
remitted to the National Treasury.

SECTION 16. Equality Clause. - Any advantage, favor, privilege, exemption or
immunity granted under existing franchises, or which may hereinafter be granted shall, upon
prior review and approval of Congress, become part of previously granted power
distribution franchises and shall be accorded immediately and unconditionally to the
grantees of such franchises. Provided, however, that the foregoing shall neither apply to nor
affect provisions concerning territory covered, term, or the type of service authorized by the
franchise.

SECTION 17. Applicability of Existing Laws. — The grantee shall comply with and be
subject to the provisions of Commonwealth Act No. 146, or the “Public Service Act” as
amended; Republic Act No. 9513 or the “Renewable Energy Act”; and Republic Act No.
9136, or the “Electric Power Industry Reform Act”, as amended.

SECTION 18. 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 19. Repealability and Nonexclusively Clause. — This franchise shall be
subject to amendment, alteration, or repeal by the Congress of the Philippine when the
public interest so requires and shall not be interpreted as an exclusive grant of the privileges
herein provided for.

SECTION 20. Repealing Clause. — All other laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed, amended or
modified accordingly.

SECTION 21, Effectivity. — This Act shall take cffect fificen (15) days after its
Official Gazette or in a newspaper of general circulation.