Republic of the Dhilippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL no 6641

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

In the Department of Energy's (DOE) Philippine Power Situation Report’, 2016 was
Characterized by a significant increase of 8.5% in peak demand and is highest during
the months of April and May. Only 89% of the total population have access to
electricity? as of 2016. The onset of El Nifio and increase in temperature during the
summer months affect demand of consumption for all three major islands, resulting
to an increase in electric consumption by 10% from 2015 to 2016.

Demand expected to grow by more than triple in 2040 and is likely to be seen as
residential consumption has also increased due to high requirements for cooling
systems®. The cost of electricity in the Philippines has gone over P8 kilowatts per
hour, one of the most expensive rates in Asia‘ in 2013. The government, in turn, is
taking strides in addressing the lack of capacity and insufficient reserve margins by
actively enticing investors and privatizing current power plants.

"+2016 Philippine Power Situation Report”. Department of Energy. Accessed from

hutps:/www.doe.gov.ph/electric-power/20 16-philippine-power-situation-report on September 20, 2017.
> “Philippines Energy Situation”. Accessed from https://energypedia.info/wiki/Philippines Energy Situation on
September 27, 2017.
°*2016 Philippine Power Situation Report” Department of Energy. Accessed from
‘htps://www.doe.gov.ph/electric-power/2016-philippine-power-situation-report on September 20, 2017.
““INFOGRAPHIC: Top Power Players in the Philippines”. Published January 16, 2013. Accessed from

hi

!ttps://www.rappler.convrich-media/14729-infographic-top-power-players-in-the-philippines on September 29,
2017.



Despite not needing to secure a congressional franchise, power generation
investments in the country is stalled by a long and arduous process that is taxing on
investors and government agencies alike. Setting up a power plant would need the
green light of over 200 required permits from various government bureaucracies and
take as long as 5 years to complete the entire process’. The current business
environment is riddled with complicated processes and stacks of requirements and
signatures necessitated. A forward-looking and well-coordinated application and
permitting process for the energy sector is timely for an efficient and accessible
system.

The DOE has taken steps to address this problem with their publication® of the
“Energy Investors’ Guidebook’ that outline the requirements and processes needed
from the department and other different government agencies. This has helped guide
developers and investors through the entire process—from proposal of power
generation projects to the implementation and construction of power plants in the
country. The proposed bill is envisioned to provide a streamlined application process
for power generation companies to enter the playing field. This aims to be a
welcomed improvement to the current system and hopes to create a healthy and
conducive environment for investment in Power Generation in the country.

This bill proposes to create and establish a Virtual One Stop Shop (VOSS) that
utilizes an online system for payments and secure and accessible paperless
processing system for applications for power generation projects. Further, it
Proposes to eliminate duplication and redundancy by streamlining the various
mandates of the different government agencies and organize documentary
submissions and processes through an Inter-Agency Technical Working Group of
the VOSS, aiming to create a consensus on the implementation and creation of the
VOSS. This also encourages the active participation of the different government
agencies in the commitment to creating a detailed but not copious process for
developers.

* “Philippines Power Generation capacity has been reduced under the WESM”. Bienvenido S. Oplas, Jr.
Published on March 23, 2016. Accessed from
http:/www.bworldonline.com/content.php?section=Opinion&title~philippine-power-generation-capacity-has-
bbeen-reduced-under-wesmé&id=124926 on September 29, 2017

““Energy Investors’ Guidebook”. Department of Energy. Accessed from

files/pdf/e_ipo/eig3.pdf on September 20, 2017.

https://www.doe.gov.ph/sites/default!


By providing solutions and encouraging the participation of government agencies in
creating a more efficient system for the energy sector, this bill hopes that this would
result to being able to provide the power supply that the country needs.

The approval of this bill is earnestly sought.

LUIS RAY! ID “LI ” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL no 664 1

Introduced by HON. LUIS RAYMUND “LRay” F. VILLAFUERTE, JR.

AN ACT ESTABLISHING THE ENERGY VIRTUAL ONE STOP SHOP FOR THE
PURPOSE OF STREAMLINING THE PERMITTING PROCESS OF ENERGY
GENERATION PROJECTS

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title — This Act shall be known as the “Energy Virtual One Stop
Shop Act of 2017",

SECTION 2. Declaration of Policy — It is hereby declared the Policy of the State to:

a) Ensure the quality, reliability, security, and affordability of energy by
undertaking measures to guarantee that Supply meets demand in a timely
manner;

») Recognize the indispensable role Of the private sector in energy generation by
attracting new energy generation Projects through an improved ease of doing
business index, and reducing the high transaction costs associated with
Copious requisites for developers;

©) Ensure transparency and accountability in the process for approving energy
generation projects; and

) Deliver efficient and effective service to the Public by:

1. Eliminating duplication, redundancy, and overlapping mandates in
documentary submissions and Processes by supplying an online
Platform for government agencies to coordinate and share information;
and


SECTION 3. Scope - This Act shail apply to all new energy generation Projects
throughout the country and all Gepartments, agencies, local governmen units
(LGUs), government-owned and controlled corporations (GOCCs), and other entities
involved in the permitting process of energy generation projects.

SECTION 4. Definition of Terms — As 15ed in this Act, the following words or terms
Shall have the following meaning, unless Provided otherwise:

to be provided;

b) Energy Virtual One Stop Shop ~ refers to an online system that allows the

Single submission and synchronous Processing of all required data and
information, and provides a Single decision-making portal for the approval of
new energy generation Projects;
Government Agency ~ refers to the agency of the government as defined in
Executive Order No. 292 otherwise known as the “Administrative Code of
1987";

rc

4) Joint Congressional Power Commission (JCPC) — refers to the Commission
Created under Republic Act No. 9136, otherwise known as the Electric Power

Industry Reform Act of 2001:

Permitting Process — refers to the comprehensive procedure undertaken in

order to put up an energy generation Project which includes but not limited to

the following phases: business registration, acquisition of an operating
contract or service contract, re-development, and Construction of a power

Plant up to and including the date of commercial operations thereof, as well as

all the required documentary requirements, taxes, and fees from all

government agencies involved in such Procedure: Provided, That the

Procedure excludes the Operational phase of the Project;

1) Procuring Entity — refers to any branch, department, office, agency, or
instrumentality of the government, including state universities and colleges,
government-owned and/or ~controlied Corporations, government financial
institutions, and local goverment units procuring goods, consulting services
and infrastructure projects,

CHAPTER I
ENERGY VIRTUAL ONE STOP SHOP

SECTION 5. Creation and Establishment — An Energy Virtual One Stop Shop
(EVOSS) is hereby established and chan be under the supervision of the DOL
Towards this end, the DOE. shall inaintain and update an effective information
technology infrastructure system which shell be updated regularly subject to the
Provisions of this Act,

SECTION 6. Characteristics — The EVOSS shall have the following characteristics:

@) Recognize the legal effect, validity, and enforceability of electronic documents
Submitted for applications of energy generation Projects;


>) Utilize an online payment iyctem for all fees and taxes imposed for
applications of energy generation Projects;

°) Provide a secure and accessible Paperless processing system for all energy
generation developers to:

1. Identify all electronic documentary requirements required from all
org med government agencies, LGUs GOCCs, and other entities,
fang, the corresponding fees and taxes and Permitting process for each
Kind of energy generation project and far each phase of the project:
be ;

4. Calculate, pay, and settle all appropriate fees and taxes electronically;
and

5. Submit complaints conceming inaction on submitted electronic
documents.

4) Provides a secure and accessible System for all government agencies
involved in the permitting process of energy generation projects te
interoperate with respect to:

1. A unified permitting process;

2. Uniform templates for electronic documentary requirements;

3. Compliance with mandated oe Teasing time as stated in each agency's
{itizen’s charter's charter or as imposed by the Inter-Agency Technical
Working Group of the EVOSS;

4. Updating and monitoring of all electronic documentary requirements for
approval and clearing:

5. Determining which agency, office, ad bureau an on-going application is
in, and its status there; and

S. Other aspects of the processing system.

©) Operates as a 100% virtual Storage and rules driven system built as an

integrated shared service of governmere agencies, LGUs, GOCCs, and other

entities involved in the permitting procese of energy generation projects; and

Comprises of a technology platform and an Operations management software

Platform for government agencies, “GUs, GOCCs, and other entities involved

in the permitting process of 3 pry generation projects to build their defined

process to build their defined processes ans forms within a strict timeframe
using published standards,

f

SECTION 7. Inter-Agency Technical Working Group of the EVOSS ~ There shall be
an Inter-Agency Technical Working Group of the Evoss (EVOSS-IATWG), to be

composed of the Office of the President as the Chairperson and the Secretary of the
DOE as the Vice-Chairperson, and shall have as members:

2) Secretary of the Department of Finance (DoF);
b) Secretary of the Department of Agriculture (DA);


1) Secretary of the Department of Environment and Natural Resource (DENR);

9) Secretary of the Department of Interior and Local Government (DILG);

h) Secretary of the Department of Transportation (DOTr);

') Secretary of the Department of Information and Communications Technology
(DICT);

)). Secretary of the Department of Public Works and Highways (DPWH);

k) Secretary of the Department of Science and Technology (DOST);

') Chairperson of the Securities and Exchange Commission (SEC);

™m) Chairperson of the Energy Regulatory Commission (ERC);

n) President of the National Power Corporation (NPC);

©) President of the National Transmission Corporation (TRANSCO);

P) Administrator of the National Electrification Administration (NEA):

9) Chairperson of the National Commission on Indigenous Peoples (NCIP);

) Executive Director of the National Water Resources Board:

S) President of the Union of Local Authorities of the Philippines (ULAP);

') Chairperson of the National Renewable Energy Board (NREB);

U) Chairperson or head of the Market Operator;

v) Chairperson or head of the System Operator; and

w) Three (3) representatives of the intended private sector end-users of the
EVOSS: Provided, That the said representatives shall be nominated by the
DOE: Provided further, That the said representatives shall be non-voting
members.

The members of the EVOSS-IATWG may designate their permanent representatives
who must be knowledgeable in the represented agency's role, requirements, fees
and taxes, and intemal processes with respect to energy generation projects:
Provided, That the involvement of the government agency, LGUs, and other entities
in the permitting process of energy generation projects is a prerequisite of its
membership in the EVOSS-IATWG.

SECTION 8. Secretariat to the EVOSS-IATWG - The DOE shall establish the
necessary Secretariat for the EVOSS-IATWG.

SECTION 9. Functions and Responsibilities of the EVOSS-IATWG Chairperson —
The Chairperson of the EVOSS-IATWG shall, upon consultation with the DOE,
convene the EVOSS-IATWG within two (2) months from the effectivity of this Act.

The Chairperson of the EVOSS-IATWG shall have the following functions and
responsibilities:

8) Provide leadership direction for the EVOSS-IATWG in order to implement this
Act and achieve its policy objectives while ensuring the responsiveness of the
EVOSS to changing developments in information technology and the needs of
the energy sector;

4) Promote collaborative relationship and open communication between
members of the EVOSS-IATWG;

©) Encourage consensus building in decision-making by the EVOSS-IATWG:
Provided, That in cases where a consensus cannot be reached, the
Chairperson shall decide on the matter;


%) Upon consultation with the Vice-Chairperson and the Secretariat, set the
EVOSS-IATWG's meeting schedule and agenda;

©) Preside over all meetings of the EVOSS-IATWG;

‘) Ensure that all key and appropriate issues are discussed, deliberated upon,
and resolved by the EVOSS-IATWG in a timely manner;

9) Review and approve all acts of the EVOSS-IATWG concerning

and ater dations on removal or inclusion of government agencies, GOCCs,

and other entities in the permitting process and I the EVOSS.IATWG:

Provided, That a government agency, GOCC or entity may be removed for

That ea ot redundancy or lack of express legal mandate. Provided further,

That a government agency, GOCC, or entity may be included if supported by

braexPress legal mandate; Provided finally, That the inclusion of a bureau,

board, or GOCC in the EVOSSIATWG ¢hall be limited to its agency or

department head; and

Initiate disciplinary action against members of the EVOSS-IATWG as

Provided in Section 16 of this Act.

hy

SECTION 10. Functions and Responsibilities of the Vice-Chairperson of the E\ Vvoss-
JATWG — The Vice-Chairperson of the EVOSS-IATWG shall have the following
functions and responsibilities:

a) Identify all government agencies, LGUs, GOCCs, and other entities involved
in each phase of the permitting process of cach kind of energy generation

effectivity of this A

Preside over meetings of the EVOSS-IATWG, jin the absence of the

Chairperson;

Prepare the Bidding Documents for the EVOSS as approved by the EVOSS-

IATWG: Provided, That the terms of reference shai come from the EVOSS-

ATWG as provided under Section 12 (e) of thie Act;

9) Actas the Procuring Entity for the EVOSS:

©) Upon consultation with the EVOSS-ATWG, invest in the necessary hardware
and software to improve and update the maintenance and operation of the
EVOSS, such infrastructure to include but Is hot limited to a virtual storage
Public data center and Quality of Service of the EVoss;

1) Equip DOE personnel to maintain and operate the Evoss;

9) Provide the necessary training and Capacity building to all government
paencies, LGUs, GOCCs, and stakeholders involved in tre Evoss;

h) Exercise supervision over the EVOSS.

1) Submit regular reports to the EVOSS-IATWG on matters enumerated in
Section 10 (c), (d), (e), (9, (g), and (h) ofthis Act ana

J) Recommend to the EVOSS-IATWG the possible expansion of the use of the
Platform to other energy licensing processes, if any.

b)

ic)

SECTION 11. Functions and Responsibilities of the EVOSS-IATWG Secretariat —
The Secretariat of the EVOSS-IATWG shall have the following functions and
responsibilities:

a) Assist the Chairperson and Vice-Chairperson in determining the meeting
Schedule and agenda of the EVOSS-IATWG;


») Supply administrative and, if necessary, technical support to the EVOSS-

IATWG;

©) Provide documents and reports which contain relevant, accurate, timely, and
Clear information necessary for the EVOSS-IATWG to futfll ts duties: ang

4) Perform such other duties as the Chairperson or the EVOSS-IATWG may
delegate to the Secretariat.

SECTION 12. Duties and Responsibilities of the EVOSS-IATWG — The EVOss-
IATWG shall have the following duties and responsibilities:

@) Within three (3) months upon the effectivity of this Act, create a detailed
Process flow of each phase of the permitting process for each kind of energy
generation project, which should reflect, among others:

1. Documentary requirements, and fees and taxes from each goverment
agency; and

2. Internal process flow which includes the offices to which the documents
Pass through, the individuals who approve them, and the maximum
number of days to process these documents as stated in the citizen's
charter or as imposed by the EVOSS-IATWG

b) Within six (6) months from the effectivity of this Act, streamline the said
detailed process flow by:

1. Agreeing on and creating unified forms of electronic documents to
replace existing documentary requirements;

2. Removing duplications and redundancies in required documents; and

3. Creating @ simplified intemal process flow within each government
agency such that applications with complete electronic documents and
settled fees and taxes shall be resolved within fifteen (15) working
days: Provided, That the timeframe for applications with the NCIP ang
LGUs shalll be governed by Sections 14 and 15 of this Act:

©) Review the maximum number of days to process documentary requirements

fs State in each government agency's citizen's charter and, should see i fi,

impose the maximum allowable number of days for Processing in each
government agency;

Ensure the linkage of an online payment system to the streamlined process

flow;

Develop the terms of reference for the EVOSS developer which will be

Phosen through a public bidding under DOE's Bids and Awards Committee:

) Determine a reasonable processing fee for energy generation developers who
use the EVOSS;

9) Meet regularly, as determined by the Chairperson and Gupon
Eyoamendation of the Vice-Chairperson, until the operationalization of the
EVOSS which shall not be later than one (1) year from the effectivity of this

d}

Act;
h) Gather biannually upon the operationalization of the EVOSS to, among
others:
1. Monitor and assess the performance of the EVOSS;
2. Determine congestion points, if any, in the existing system, and
mechanisms to address them;
3. Receive and resolve complaints from goverment personnel and
energy generation developers who use the system;


4. Convey information, if any, of the agency's updated requirements and
internal processes which make the current system more efficient;

5. Identify redundant requirements or those not expressly mandated by
faw, and recommend to the Chairperson the removal of the
requirement from the permitting process and the concemed agency, if
applicable, from the EVOSS-IATWG;

6. Identify redundant requirements which are expressly mandated by law
and submit a recommendation on the matter to the Joint Congressional
Power Commission (JCPC); and

7. Prepare the annual report to the JCPC.

') Perform other acts necessary and incidental to accomplish the policy
objectives of this Act.

SECTION 13. Duties and Responsibilities of Government Agencies, LGUs, GOCCs,
Other Entities, and Stakeholders ~ All government agencies, GOCCs, other entities,
and stakeholders involved in the permitting process of energy generation projects
shall:

a) Actively participate in the EVOSS-IATWG;

b) Cooperate and co-labor with the DOE and other govemment agencies
towards the immediate operationalization of the EVOSS:

©) Continually review internal process flows to increase efficiency and reduce
Processing time; and

9) Assign a person in charge of managing the EVOSS account to ensure proper
monitoring and updating of electronic documents before the said agency.

SECTION 14. Local Goverment Units - All applications with complete supporting
documents filed with the LGU shall be resolved within fifteen (15) calendar days for
barangays, fifteen (15) calendar days for cities or municipalities, and fifteen (15)
calendar days for provinces: Provided, That this shall not preclude the EVOSS-
IATWG from imposing a shorter timeframe for resolution of applications should it see
the expediency and feasibility of doing so.

Fallure of an LGU to act on applications duly filed with complete supporting
documents within the given period of time shall be deemed approval of such
application by the LGU.

The denial of applications shall only be valid grounds and fully explained in writing.

The said denial may be appealed to the LGU having supervisions over the

disapproving LGU or, in the case of highly urbanized and independent cities, to the

DILG. In all cases, any conflict between and among LGUs shall be resolved in

accordance with the remedies provided for under the Local Goverment Code of
991.

SECTION 15. Indigenous Cultural Communities/Indigenous Peoples — Applications
with NCIP shall be resolved within a maximum period of thirty (30) calendar days:
Provided, That this shall not preclude the EVOSS-IATWG from imposing a shorter
timeframe for resolution of applications should it see the expediency and feasibility of
doing so: Provided further, That denial of applications shall only be on valid grounds
and fully explained in writing.


CHAPTER Ill
PROHIBITED ACTS AND PENALTIES

SECTION 16. Administrative Offenses — The following acts, when committed by a
government official and/or employee, shall be considered administrative offenses:

a) Willful refusal to participate in the EVOSS;

b) Willful acts which delay the operationalization of the EVOSS;

©) Failure to comply with the mandated processing time of applications for
energy generation projects as provided in an agency's citizen's charter or as
imposed by the EVOSS-IATWG; and

d) Tampering with the EVOSS or any part or component thereof.

SECTION 17. Confidentiality — No information or any aspect of a document
submitted by any energy generation developer shall be divulged or released to
anyone other than an authorized person or agency.

SECTION 18. Penalties — Any person found guilty of committing the act stated in
Section 16 (a) and (b) shalll be penalized as follows:

a) First offense — Thirty (30) days suspension without Pay;
b) Second offense ~ Three (3) months suspension without pay; and
¢) Third offense — Dismissal and perpetual disqualification from public service.

Any person found guilty of committing the act stated in Section 16 (c) shall be
penalized as follows:

a) First offense — Reprimand;
b) Second offense — Thirty (30) days suspension without pay; and
©) Third and succeeding offenses - Three (3) months suspension without pay.

Any person found guilty of Committing the act stated in Section 16 (d) shall suffer the
penalty of dismissal and perpetual disqualification from public service.

Any person found guilty of violating Section 17 shall suffer the penalty of dismissal
and perpetual disqualification from public service.

SECTION 19. Administrative Jurisdiction — The administrative jurisdiction on any
violation of the provision of this Act shall be vested in the Civil Service Commission
or the DILG, in accordance with appropriate laws and issuances.

SECTION 20. Civil and Criminal Liability - The finding of administrative liability under
this Act shall not be a bar to the filing of criminal, civil, or other related charges under
existing laws arising from the same act or omission as herein enumerated,

CHAPTER IV
GENERAL PROVISIONS


SECTION 21. Appropriations — The sum Fifty Million Pesos (Php. 50,000,000) for the
initial implementation of this Act shall be taken from the current appropriations of the
DOE. Thereafter, the funds necessary to carry out the provisions of this Act shall be
included in the annual General Appropriations Act.

SECTION 22. Oversight Committee — Upon the effectivity of this Act, the JCPC
established under Republic Act No. 9136 or the Electric Power Industry Reform Act
of 2001 shall exercise ‘oversight powers over the implementation of this Act.

SECTION 23. Reportorial Requirements — The EVOSS-IATWG shall take the
mecessary measures to ensure that the provisions of this Act are properly
implemented and should submit annual reports on the program implementations and
fund utilization to the JCPC.

SECTION 24. Evaluation — Upon recommendation of the EVOSS-IATWG, or within
five (5) years after the effectivity of this Act, the JCPC shall conduct a systematic
gvaluation of the accomplishments and impact of this Act for purposes of
determining remedial legislation,

SECTION 25. Separability Clause — If for any reason, any provision of this Act is
declared unconstitutional or invalid, the other parts or Provisions hereof which are
Not affected thereby shall continue to be in full force and in effect.

SECTION 26. Repealing Clause — All laws, decrees, orders, rules, and regulations or
Parts thereof which are inconsistent with or contrary to the provisions of this Act are
hereby repealed, amended or modified accordingly.

SECTION 27. Effectivity — This Act shall take effect fifteen (15) days after its
Publication in at least two (2) national newspapers of general circulation.

Approved,