SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.B. No. 2989 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
'15 
OCT -7 P6 :06 
; <I;n" 
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AN ACT PROVIDING FOR A MAGNA CARTA FOR WORKERS IN THE ENERGY SECTOR OF THE 
PHILIPPINES, AUTHORIZING THE COLLECTION AND APPROPRIATION OF FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
As we maintain the rise of the Philippine economy and pursue the growth of each 
industry, most especially our micro, small, and medium enterprises (MSMEs), we need to 
focus on the development and sustainability of the energy sector in the country. 
Power is a necessity in our daily lives, whether we are students, employees, 
entrepreneurs, head of corporations, and even for the entertainers we see on television, It is 
the bedrock for all sectors to build and thrive. 
Yet, in 2013, the cost of power in the Philippines was the fifth highest in the world, 
well above our Southeast Asian neighbors Indonesia, Malaysia, and Thailand' . 
These high electricity rates, not to mention the impending energy crisis, are a source of 
frustration for the national economy, micro and large bUSinesses, and households alike. This 
situation, if left unabated, will certainly stunt our growth and progress. 
With the innovations in the field of energy, particularly in renewables and sustainable 
energy sources, the Philippines is presented with so many opportunities and so much room 
for growth in our power industry. 
We need to guarantee the evolution and progression of our energy sector by ensuring 
that the people working within it are top-notch, creative, and able. Thus, it's high time we 
invest in the Philippine energy sector by investing in the people that are building it. 
The Magna Carta for Energy Development Workers aims to provide a human resource 
development program that will attract the brightest Filipinos to commit a life of mission in the 
energy sector. 
The measure proposes a compensation package and capacity development program 
that is competitive and at par with other industries. It establishes the Energy Career System 
that will create a new standardized salary scheme with scholarships, retirement packages and 
other additional benefits for workers in the sector. 
1 Rigoberto Tiglao. The Manila Times, 9 January 2014. "High electricity costs root of our backwardness". 
<http://www.manilatimes.net/high-electricity-costs-root-of-our-backwardness/66574/> 
1 


It hopes to invite the best of the best engineers, sCientists, geologists, policy makers, 
strategists and mavericks to choose to stay in the sector and provide the country with cheap, 
safe, and sustainable energy. 
Let's reenergize the sector and engulf it with young blood and creative minds by 
ensuring them that we will take care of their future and development. 
In view of the foregoing, the approval of this bill is earnestly sought. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
'15 
OCT -7 P6 :06 
SENAT~ 
S.B. No. 
~ 989 
Introduced by: Senator PaQlo Benigno "Bam" A. Aquino IV 
AN ACT PROVIDING FOR A MAGNA CARTA FOR WORKERS IN THE ENERGY SECTOR OF THE 
PHILIPPINES, AUTHORIZING THE COLLECTION AND APPROPRIATION OF FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and Hause of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Magna Carta for Workers in the 
2 
Energy Sector of the Philippines." 
3 
SEC. 2. Dec/aration of Policy. - The State recognizes energy as an essential element for 
4 
the attainment of sustained national development and progress. To attain this objective, it is 
5 
hereby declared the policy of the State to provide for a program of human resources 
6 
development in energy sector to achieve and maintain the necessary reservoir of talent and 
7 
manpower that will sustain its drive for accessible, affordable and sustainable electricity in 
8 
various parts and sectors of the society. 
9 
The State shall establish, promote and support programs leading to the realization of 
10 
this objective, such as scholarship programs, improvement of the quality of energy education, 
11 
popularization and sustainability of energy culture, and provision of incentives for pursuing 
12 
careers in energy and its allied degree programs. 
13 
SEC. 3. Definition of Terms. 
14 
(a) Department -
refers to the Department of Energy (DOE) created pursuant to 
15 
Republic Act No. 7638. 
16 
(b) Department's Attached Agencies - the attached agencies of the Department shall 
17 
include, but not limited to, the National Electrification Administration (NEAl. 
18 
National Power Corporation (NPC), National Transmission Corporation (TransCol. 
19 
Philippine National Oil Company (PNOC), and Power Sector Assets and liabilities 
20 
Management (PSALM). 
21 
(c) Energy Activities and Projects - all systematic activities and projects which are 
22 
closely concerned with the energy exploration, development, generation, 
23 
transmission, distribution, utilization and commercialization of energy resources 
24 
including the dissemination and application of scientific and technical knowledge in 
25 
all fields of energy such as, but not limited to, coal mining, oil and petroleum, 
26 
renewable energy, gas, alternative energy technologies, bio-energy, electrification 
1 


1 
and all undertakings that are necessary for the proper, effective and efficient 
2 
implementation of the Philippine Energy Plan (PEP) formulated by the Department 
3 
duly approved by the President of the Philippines. 
4 
(d) Energy Workers or Personnel- shall be composed of personnel as classified below: 
5 
1.) Department's Workers - refers to all officials and personnel of the Department 
6 
who are directly responsible in the planning, formulation, processing, 
7 
execution, monitoring and evaluation of energy programs, activities and 
8 
projects; 
9 
2.) Department's Attached Agencies Workers - refers to all officials and personnel 
10 
of the Department's attached agencies who are directly responsible in the 
11 
planning, formulation, processing, execution, monitoring and evaluation of 
12 
energy programs, activities and projects and as defined in their respective 
13 
Charters; and 
14 
3.) Electrification Workers - refers to all officials and personnel of the different 
15 
Electric Cooperatives duly registered with the National Electrification 
16 
Administration and Cooperative Development Authority. 
17 
SEC. 4. Energy Career System. - A career system for energy personnel in the service of 
18 
the government shall be formulated by the Department in coordination with the Civil Service 
19 
Commission (CSC). 
20 
SEC. 5. Classification of Energy Personnel. - Energy personnel may be classified in the 
21 
following categories: 
22 
(a) Energy managers, supervisors, policy-makers, and planners -
Those who are 
23 
graduate degree holders or have at least ten (10) years of managerial and 
24 
supervisory experience or are performing executive, managerial, planning and 
25 
policy-making functions to effectively carry out the energy related activities and 
26 
projects as defined in Section 3(c) of this Act. 
27 
Provided, That for personnel who occupy third level positions, comprised of 
28 
above Division Chief to Undersecretary and their equivalents, must be appointed 
29 
by the President of the Philippines to the appropriate Career Executive Service 
30 
Officer (CESO) rank in accordance to the pertinent poliCies and regulations 
31 
promulgated by the Career Executive Service Board (CESB); 
32 
(b) Members of the energy career system; 
33 
(c) Mining and petroleum engineers, geologists, engineers, scientists, inspectors, and 
34 
researchers. - Those who are at least undergraduate or bachelor's degree holders 
35 
in any of the engineering, law, public administration, economics and its allied fields 
36 
and are involved in the conduct of inspections, enforcement, evaluation and 
37 
monitoring of energy activities and projects as defined under Section 3(c) of the act 
38 
including those engaged in research and development on energy sector; and 
39 
(d) Technicians and related energy personnel. - Those who obtained at least twelve 
40 
(12) units in public administration, engineering, sciences, economics, social 
41 
sciences, information and communication technology (ICT) and allied courses or 
42 
any appropriate training as determined by the Secretary of the Department and 
43 
are providing administrative and support services to energy personnel enumerated 
44 
in the three (3) preceding sub-sections. The related energy personnel herein shall 
2 


1 
also include those workers involved in the audit, enforcement, evaluation and 
2 
monitoring of the technical, financial, legal and socio-economic aspects of any 
3 
energy program, project and activities. 
4 
SEC. 6. Salaries. - The existing law on salary scales of government employees shall not 
5 
apply in determining the salary scale of energy personnel as defined in Section 5 of this Act. A 
6 
new salary scale shall be developed by the Department in consultation with the Department 
7 
of Budget and Management (DBM) and the Civil Service Commission (CSC), subject to the 
8 
approval of the President of the Philippines. 
9 
SEC. 7. Other Benefits. - Notwithstanding Section 12 of Republic Act No. 6758, energy 
10 
personnel defined under Section 5 of this Act shall receive the following: 
11 
(a) Honorarium. - Energy personnel who rendered services beyond the established 
12 
irregular workload of managers or executives, mining and petroleum engineers, 
13 
geologists, engineers, scientists, researchers, inspectors and technicians whose 
14 
broad and superior knowledge, expertise or professional standing in a specific field 
15 
contributes to productivity and innovativeness shall be entitled to receive 
16 
honorarium subject to rules to be set by the Department. 
17 
The Chairs, Vice Chairs, Members and Secretariat of governing boards or 
18 
technical committees of the Department created by law and regulations such as, 
19 
but not limited to, the National Renewable Energy Board (NREB) and Renewable 
20 
Energy-Review and Evaluation Committee (RE-REC) under Republic Act No. 9513 
21 
and its Implementing Rules and Regulations and its subsequent issuances, the 
22 
National Biofuels Board (NBB) under Republic Act No. 9367, Review and Evaluation 
23 
Committee of the Philippine Energy Contracting Round (REC-PECR) under 
24 
Presidential Decree No. 1442 and its subsequent issuances and implementing 
25 
guidelines, including that of the Department's attached agencies, shall be entitled 
26 
to reasonable honorarium as prescribed by the Department of Budget and 
27 
Management, and reimbursement of actual expenses incurred for their attendance 
28 
during meetings, seminars, conferences and official functions subject to usual 
29 
accounting and auditing rules and regulations. 
30 
(b) Share from Government Shares, Fees and Charges from Supervision and 
31 
Regulation. - Energy personnel shall be entitled to receive share from government 
32 
shares, fees and charges from supervision and regulation subject to guidelines of 
33 
the Department. The share from the government shares shall be on a sixty 
34 
percent-forty percent (60%-40%) basis in favor of the government and the 
35 
personnel involved in energy programs, activities and projects which has been 
36 
produced or undertaken during the regular performance of their functions. 
37 
For the purpose of this Act, government share shall be defined as a share in 
38 
the proceeds of payments arising from the energy exploration, development, 
39 
generation, transmission, distribution, utilization and commercialization of energy 
40 
resources in various sectors while share in the fees and charges from supervision 
41 
and regulation in the downstream oil industry shall refer to the sum charged and 
42 
collected from acknowledgements, applications, certifications, endorsements, 
43 
processing fees, violation fines/penalties and other reasonable payments in 
44 
connection with the enforcement of energy laws and implementation of program, 
45 
activities and projects in the downstream oil industry; 
46 
(c) Hazard Allowance. -
Energy personnel involved in hazardous undertakings or 
47 
assigned in hazardous workplaces to conduct periodic inspection, evaluation and 
3 


1 
monitoring of energy related projects and activities shall be paid hazard allowances 
2 
ranging from ten (10%) to thirty (30%) percent of their monthly basic salary 
3 
depending on the nature and extent of the hazard involved. The following shall be 
4 
considered hazardous workplaces: 
5 
(1) Radiation-exposed laboratories and service workshops 
6 
(2) Remote/depressed areas 
7 
(3) Areas declared under a state of calamity or emergency 
8 
(4) Strife-torn or embattled areas 
9 
(5) Laboratories and other disease-infested areas 
10 
(6) Electrical machine and mechanical rooms 
11 
(7) Pressure vessels and other steam generating facilities 
12 
(8) Areas, establishments or energy and energy-related facilities where energy 
13 
personnel or inspectors are directly or imminently exposed to hazardous 
14 
vapors, products and toxic fumes (and substances) such as, gasoline stations, 
15 
oil depots, terminals, auto-LPG dispensing stations and gas refilling plants 
16 
(d) Subsistence Allowance. - Energy personnel shall be entitled to full subsistence 
17 
allowance equivalent to three (3) meals a day, which may be computed and 
18 
implemented in accordance with the criteria to be provided in the implementing 
19 
rules and regulations. Those assigned out of their regular work stations shall be 
20 
entitled to per diem in place of the allowance; 
21 
(e) Laundry Allowance. - Energy personnel who are required to wear a prescribed 
22 
uniform during office hours shall be entitled to a laundry allowance of not less than 
23 
One hundred fifty pesos (Php150.00) a month; 
24 
(f) Housing and Quarter Allowance. -
Energy Personnel who are on duty in 
25 
laboratories, energy research and development centers and other government 
26 
facilities shall be entitled to free living quarters within the government facility 
27 
where they are stationed: Provided, That the personnel have their residence 
28 
outside of the fifty (50)- kilometer radius from such government facility; 
29 
(g) Longevity Pay. - A monthly longevity pay equivalent to five percent (5%) of the 
30 
monthly basic salary shall be paid to energy personnel for every five (5) years of 
31 
continuous and meritorious service as determined by the Secretary of the 
32 
Department; 
33 
(h) Medical Examination. - During the tenure of their employment, energy personnel 
34 
shall be given a compulsory free medical examination once a year and 
35 
immunization as the case may warrant. The medical examination shall include: 
36 
(1) Complete physical examination 
37 
(2) Routine laboratory, Chest X-ray and ECG 
38 
(3) Psychometric examination 
4 


1 
(4) Dental Examination 
2 
(5) Other indicated examination authorized by the Department Secretary 
3 
(i) Family and Home Visit Allowance. - To further enhance the recruitment process 
4 
and mobility of energy personnel, a monthly family and home visit allowance shall 
5 
be provided to energy personnel comprised of free transportation during 
6 
Saturdays and Sundays or Holidays only. Provided, That the personnel have their 
7 
residence outside of the fifty (50)- kilometer radius from work assignment; 
8 
(j) Incremental Performance-Based Bonus. - Energy personnel shall be provided of at 
9 
least twenty (20%) percent additional performance-based bonus if the total annual 
10 
agency accomplishment has surpassed by one hundred (100%) percent during the 
11 
period covered as verified by the Department of Budget and Management; 
12 
(k) Collective Negotiation Agreement (CNA). - Energy personnel shall be given the 
13 
right to enter into Collective Negotiation Agreements including the grant of 
14 
benefits thereof in accordance with applicable rules and regulations. Provided, 
15 
That for employees of government-owned and controlled corporations and 
16 
financial institutions, the CNA may only be granted upon showing of the agency's 
17 
fiscal and financial viability; 
18 
(I) Hardship Allowance. - Energy workers who performed physical work performed in 
19 
hazardous environments such as, the conduct of inspections, evaluation and 
20 
monitoring of energy-related activities and projects be covered by Hardship 
21 
Allowance of Five Hundred Pesos (Php500.00) per day; and 
22 
(m) Maternity or Paternity Leave- Subject to rules and regulations promulgated jointly 
23 
by the Department and CSC, energy workers, both public and private, shall be 
24 
granted of ninety (90) days, with full pay based on average weekly or regular 
25 
wages, regardless if the delivery was normal or caesarian. 
26 
Subject to the approval by the Department Secretary, an additional 
27 
maternity leave of thirty (30) days, without pay, can be availed of, at the option of 
28 
the employee. 
29 
SEC. 8. Non-Department Personnel. -
Energy personnel not employed by the 
30 
Department such as, but not limited to, the personnel of the Affiliated Energy Centers (AECs), 
31 
comprised of State Universities and Colleges (SUCs), government research and development 
32 
institutions or consortium thereof, duly accredited by the Department in accordance with its 
33 
relevant poliCies and guidelines who are involved in energy activities and projects including 
34 
the officials and faculty members of State Universities and Colleges under Section 10 of this 
35 
Act, may avail of the benefits under this Act upon certification of the Secretary of the 
36 
Department. 
37 
The eXisting Affiliated Renewable Energy Centers (ARECs), in good standing, may be 
38 
converted to AECs subject to the appropriate guidelines, qualifications, requirements and 
39 
processes to be issued by the Department Secretary. 
40 
SEC. 9. Scholarships and Grants. - Energy personnel in public and private sectors shall 
41 
be entitled to avail of scholarship benefits and grants pursuing undergraduate, graduate, post-
42 
graduate or training courses in accordance with a Scholarship Program to be implemented by 
43 
the Department. Grantees of the program may study within the Philippines or abroad 
5 


1 
provided that the Department shall provide strict measures to ensure their return to the 
2 
country to render the service obligation. 
3 
Recipients of undergraduate scholarships shall, after graduation, be required to render 
4 
service in the government for the equivalent number of years that they availed of their 
5 
scholarships. However, in case where there are no available positions in the government, they 
6 
may be allowed to work in the private sector. 
7 
Scholarship privileges may be on a full-time or part-time basis and shall include tuition 
8 
fee, book allowance, transportation allowance, monthly stipend, dissertation grants, 
9 
insurance and the payment of regular salary and other benefits. 
10 
For this purpose, the Human Resource Development Council created under Republic 
11 
Act No. 8248 shall formulate the rules and regulations to implement the Scholarship Program 
12 
. provided in this Act. 
13 
SEC. 10. Offering of Energy Related Degree Programs and Trainings in Higher 
14 
Educatian Institutions. To further enhance the implementation of the poliCies under Section 2 
15 
of this Act, offering of energy related degree programs shall be mandatory to State 
16 
Universities and Colleges (SUCs) with mandates and curricular offerings or programs provided 
17 
in their respective Charters that include, among others, energy, geology, science and 
18 
technology. Other State Universities and Colleges including private higher education 
19 
institutions shall also be encouraged to offer energy related degree programs. 
20 
To fully implement this provision, SUCs offering energy related programs shall be 
21 
entitled to automatic additional budget of not less than five (5%) percent of their respective 
22 
annual appropriations to be used for the personnel services, MOOE and capital outlay 
23 
necessary to ensure sustainability of the energy related degree programs in their respective 
24 
schools. Furthermore, the Secretary of the Department or his/her authorized representative 
25 
shall be member of the governing board of SUCs and private institutions offering energy 
26 
related programs to ensure that it shall be complementary and contributory to the Philippine 
27 
Energy Plan and thrusts of the national government. The Secretary or his/her duly authorized 
28 
representative shall be entitled to the rights and privileges of a regular member of the 
29 
governing board pursuant to Republic Act No. 8292, otherwise known as the "Higher 
30 
Education Modernization Act of 1997" and the charters of SUCs or by-laws and policies of the 
31 
private higher education institutions concerned. 
32 
Furthermore, the Department shall endeavor to establish partnerships with public and 
33 
private institutions for the establishment and operations of training institutes to cater to the 
34 
profeSSional, technical, administrative or managerial and executive enhancement and training 
35 
needs of the energy personnel and interested individuals in the energy sector. Such amount 
36 
necessary for the implementation of this provision shall be incorporated in the annual budget 
37 
of the Department. 
38 
SEC. 11. Honorarium for Other Services. - Mining and petroleum engineers, geologists, 
39 
engineers, scientists, researchers, technologists, inspectors, technicians and other energy 
40 
officials and personnel shall be allowed to render consultancy services to the private sector 
41 
and shall be entitled to receive such honorarium that may be paid to them by the private 
42 
entity concerned. Such payments shall be over and above their salary from the government 
43 
during the period of the consultancy and shall not be considered as double compensation: 
44 
Provided, That the consultancy work will not jeopardize or adversely affect the operations or 
45 
activities of his/her originating office or constitute conflict of interest of his/her duties and 
46 
responsibilities therein: Provided, further, That the Secretary of the Department approves 
47 
such conSUltancy. 
6 


1 
SEC. 12. Detail to the Private Sector and Industry Immersion. - Notwithstanding to 
2 
the provisions of existing laws, officials, mining and petroleum engineers, geologists, 
3 
engineers, scientists, researchers, technologists, inspectors, technicians and energy related 
4 
personnel who are employed on a regular basis in the government, whether or not they are 
5 
conferred any rank under the Energy Career System, shall hereby be allowed secondment to 
6 
any private entity whenever such services are required: Provided, That the duration of such 
7 
service with a private entity shall not exceed one (1) year: Provided, further, That the detail or 
8 
secondment of said personnel will not hamper or adversely affect the operations or activities 
9 
of his/her originating office or constitute conflict of interest of his/her duties and 
10 
responsibilities therein: Provided, finalfy, That the head of the agency approves such detail or 
11 
secondment. 
12 
During the period of such secondment, payment of the seconded employee shall be 
13 
borne by the seconding private entity covered by a contract. The period of secondment shall 
14 
be used in computing the retirement benefits but not for the commutation of leave credits 
15 
earned. Such secondment shall not likewise affect his security of tenure nor result in the loss 
16 
of seniority rights subject to guidelines on secondment in the IRR of this Act. 
17 
SEC. 13. Exemption from the Attrition Law and Civil Service Rule on Nepotism. -
18 
Except for third level positions, a ppointment of energy personnel to positions equivalent to 
19 
salary grade ten (SG 10) and above shall not be covered by the Attrition law and Civil Service 
20 
Commission (esC) rule on nepotism in consideration of the highly technical nature of these 
21 
pOSitions. 
22 
SEC. 14. Provision Against Double Benefits. - Energy personnel already receiving the 
23 
same benefits under any other law shall not be allowed to avail of the benefits under this Act 
24 
unless they submit in writing their intention to withdraw the benefits already being received 
25 
and opt for those provided hereunder. 
26 
27 
SEC. 15. Highest Basic Salary Upon Retirement. -
Upon retirement, the energy 
28 
personnel concerned shall automatically be granted one (1) position higher than his/her 
29 
current pOSition and his/her retirement benefits shall be computed on the basis of the 
30 
equivalent salary of the next higher position/rank. 
31 
Upon retirement, the energy personnel concerned shall also be granted retirement 
32 
gratuity based on the total length of service (converted into gratuity months) multiplied by 
33 
the highest basic salary of the higher position/rank provided above in accordance with the 
34 
provisions of Republic Act No. 1616 or "An Act Further Amending Section Twelve of 
35 
Commonwealth Act Numbered One Hundred Eighty-Six, as Amended, By Prescribing Two 
36 
Other Modes of Retirement and For Other Purposes." 
37 
SEC. 16. Prohibition Against Diminution and/or Elimination. - Nothing in this law shall 
38 
be construed to eliminate or in any way diminish benefits being enjoyed by energy personnel 
39 
at the time of the effectivity of this Act. 
40 
SEC. 17. Hiring of Retired Energy Personnel.' An employee retired under any existing 
41 
law, who, in the judgment of the Secretary of the Department, possesses managerial or 
42 
technical qualifications and the capability to undertake energy related activities, may be 
43 
rehired on contractual basis without refunding the unexpired portion of the gratuity and 
44 
accumulated leave benefits received by him/her from the Government: Provided, That no 
45 
qualified energy expert or applicant is available to undertake said energy activities. 
7 


1 
SEC. 18. Government Scholars and Training Grantees. - Graduates or grantees of 
2 
government energy scholarship programs or trainings shall be given temporary waiver of CSC 
3 
eligibilities for at least two (2) years and preferential access to financial grants from any 
4 
government agency authorized to extend grants and loans with easy terms from government 
5 
financing institutes, for energy projects which are viable and in line with the development 
6 
thrust of the country. 
7 
SEC. 19. Enhancement of Corporate Social Responsibility (CSR) Programs in the 
8 
Energy Sector. - The Department shall devise mechanism that shall enhance the Corporate 
9 
Social Responsibility (CSR) Programs of the energy sector which shall redound to the benefit of 
10 
the general welfare of the host local government units (LGUs) and of energy activities or 
11 
projects. A host LGU/s shall include the political subdivision such as, the barangay/s, 
12 
municipality/ies and province/s where the energy project is located. 
13 
The CSR commitment fund of every energy contractor shall be determined by the 
14 
Department and the same be integrated in the service or operating contracts to be executed 
15 
between the Department and the contractor subject to applicable laws, rules and regulations. 
16 
The duly accredited Affiliated Energy Centers shall be given preference as partner of 
17 
energy contractors in the implementation of the CSR programs in their respective areas 
18 
consistent with relevant policies to be issued by the Department. 
19 
SEC. 20. Energy Awards. - There shall be established Energy Awards Committee which 
20 
shall confer annually the Energy Awards for outstanding achievement/s and excellence or 
21 
original contribution to energy development, exploration, commercialization, utilization, 
22 
transmission and distribution. 
23 
The Committee, to be constituted by the Secretary of the Department within fifteen 
24 
days upon the effectivity of this Act, shall promulgate the guidelines in implementing this 
25 
Section and shall specify the categories of awards to be given and the amount of financial 
26 
reward for each category. Further, the Chair, Vice Chair and Members including the Technical 
27 
Staff of the Committee shall be entitled with the benefits prOVided under 2nd paragraph of 
28 
Section 7 (a) ofthis Act. 
29 
SEC. 21. Congressional Commission on Energy. -
There is hereby created a 
30 
Congressional Commission on Energy (Energy Com) to review and assess among others, the 
31 
state of the Philippine human resources development in energy sector, the state of 
32 
computerization and information technology in the energy activities and projects, and the 
33 
implementation of this Act. 
34 
The Commission shall be composed of five (5) Members of the House of 
35 
Representatives and five (5) Members of the Senate. It shall be Co-chaired by the 
36 
Chairpersons of the Committee on Energy of both Houses of Congress. Such congressional 
37 
review shall be undertaken at least once every two (2) years. 
38 
SEC. 22. Authority of the Department to Collect, Manage and Disburse Income. - To 
39 
supplement the implementation of this Act, the Department is hereby authorized to collect 
40 
any amount for the royalties from the energy activities and projects due for the government 
41 
as provided under Section 7(b) including, among others, the application, processing or 
42 
supervision and regulation fees, signing bonus, training assistance, scholarship programs, and 
43 
development assistance and such other reasonable fees and charges for the application and 
44 
awarded service and operating contracts. 
8 


1 
All incomes generated by the Department shall be deposited in trust accounts in the 
2 
authorized government depository banks to be exclusively managed and disbursed by the 
3 
Department subject to usual accounting and auditing rules and regulations. 
4 
To attain the mandate and objective of this provision, the Secretary of the Department 
5 
shall create separate Compliance Services with divisions for renewable energy resources, 
6 
conventional 
energy 
resources, 
and 
the 
DOE-administered 
funds 
from 
power 
7 
producer/energy resource developers and such other units. The organizational staffing 
8 
patterns of these Compliance Services and its divisions or units shall be submitted to the 
9 
Department of Budget and Management for approval. 
10 
SEC. 23. Establishment and Management oj the Regional Offices. -
To further 
11 
enhance the efforts, and ensure proper and efficient protection and utilization of energy 
12 
resources there is a need to strengthen the regulatory powers and functions of the 
13 
Department of Energy. Toward this end, the Secretary of the Department is hereby authorized 
14 
to create a Regional Office for every regional subdivision in the Philippines with adequate 
15 
manpower, facilities, equipment and resources necessary in carrying out their respective 
16 
mandates, regulatory authority, and duties. 
17 
The Regional Offices shall be under the direct administrative supervision and control of 
18 
the Office of the Secretary or any designated official of the Department and each shall be 
19 
headed by a Regional Director who shall be assisted by at least two (2) Assistant Regional 
20 
Directors and Chiefs and staff of various administrative and technical divisions in accordance 
21 
with the organizational staffing patterns approved by the Department of Budget and 
22 
Management. 
23 
The current employees of the Department of Energy in its field offices shall be given 
24 
priority in the hiring and filling-up of positions in various Regional Offices so created. 
25 
Hiring, promotions and other personnel actions of the officials and employees shall be 
26 
subject to applicable laws, rules and regulations. 
27 
SEC. 24. Research and Development (R&D) on Energy. The Department shall, in 
28 
consultation with the stakeholders, formulate a short-term, medium-term and long-term 
29 
Research and Development (R&D) on Energy complementary to the Philippine Energy Plan 
30 
(PEP) and local and national development plans and thrusts. 
31 
To fully implement this provision, the Department Secretary is hereby authorized to 
32 
create and prescribe the functions and duties of the Energy Research and Development Office 
33 
(ERDO) under the direct supervision of the Office of the Secretary or his authorized 
34 
representative. The organizational and staffing pattern including the hiring of the Director, 
35 
Division Chiefs and other personnel of the ERDO shall be subject to the approval of the DBM 
36 
and in accordance with the pertinent Civil Service Commission and other applicable laws, rules 
37 
and regulations. 
38 
SEC. 25. Funding. - The amount necessary to fully implement this Act shall be provided 
39 
in the General Appropriations Act (GAA) of the year following its enactment into law under 
40 
the budgetary appropriations of the DOE and concerned agencies. 
41 
SEC. 26. Annual Report. - The Secretary of the Department shall submit to the 
42 
Congressional Commission on Energy, an annual report of the status of implementation of this 
43 
Act. 
9 


1 
SEC. 27. Implementing Rules and Regulations (lRR). -
The Secretary of the 
2 
Department, in consultation with government and nongovernment agencies involved in 
3 
energy activities and projects, shall formulate the implementing rules and regulations to carry 
4 
out the provisions of this Act. 
5 
SEC. 28. Repealing Clause. - All laws, decrees, orders, rules and regulations, or parts 
6 
thereof, inconsistent with the provisions of this Act are hereby amended or repealed 
7 
accordingly. 
8 
SEC. 29. Separability Clause. -
The provIsions of this Act are hereby declared 
9 
separable. In the event that any provision hereof is rendered unconstitutional, those that are 
10 
not affected shall remain valid and effective. 
11 
SEC. 30. Effectivity. - This Act shall take effect immediately after publication in two (2) 
12 
newspapers of general circulation. 
13 
Approved, 
10