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SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
FIRST REGULAR SESSION
SENATE
S enate Bill No. 14G1
In Substitution of Senate Bill No. 1253
'17 MAY17. P5i46
RECtlVLUBt;
P repared and su b m itted  by th e  C om m ittee on Energy w ith S enator
G atchalian as a u th o r th ere o f
AN ACT
INSTITUTIONALIZING THE ELECTRIC COOPERATIVES EMERGENCY 
AND RESILIENCY FUND AND APPROPRIATING FUNDS THEREFOR
CHAPTER I
TITLE, POLICY, AND DEFINITIONS
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SECTION 
1. 
T itle.- This Act shall 
be known as the “Electric
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Cooperatives Emergency and Resiliency Fund Act of 2017’’.
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SECTION 2. D eclaration of P olicy.- It is hereby declared the policy of
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the State to:
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a) Support and assist, to the fullest extent, electric cooperatives
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adversely affected by a fortuitous event or by force m ajeure in
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order to immediately restore electric service, recognizing that
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the absence of electric service after such is a national security
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issue, thereby:
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1. Facilitating 
the 
rescue 
and 
relief 
operations,
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availability of basic services such as food, water,
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medicine, and hospitals, and mitigation of civil unrest;
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2. Aiding the norm al functioning of local government
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units 
(LGUs) and 
com m unities, 
and 
easing the
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recovery of the adversely affected individuals 
and
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families;
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3. Assisting efforts of the affected LGUs in expediting the 
rendering of aid, assistance, and emergency services, 
and 
the 
reconstruction 
and 
rehabilitation 
of 
devastated areas.


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b) Provide an orderly and continuing m eans of financial assistance 
to electric cooperatives in carrying out their responsibility of 
providing reliable electric service necessary to alleviate the 
sufferings and dam ages brought about by a fortuitous event or 
force m ajeure by:
1. Allocating funds in the form of grants for disaster 
mitigation, disaster preparedness, and restoration or 
rehabilitation 
of 
electric 
cooperatives’ 
damaged 
facilities th at are readily accessible;
2. Providing a stream lined process for the availm ent of 
the fund;
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3. Requiring the electric cooperatives to develop and 
im plem ent 
comprehensive 
vulnerability 
risk 
assessm ents which identify disaster preparedness and 
disaster mitigation m easures to protect and strengthen 
critical infrastructure assets, and emergency response 
plans 
to 
address 
immediate 
restoration 
or 
rehabilitation efforts.
c) Adopt resiliency planning in transm ission and distribution 
system s to lessen im pact of natural calam ities to such 
infrastructure facilities thereby avoiding additional passed-on 
charges to consum ers; and
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d) Strengthen operational support to electric cooperatives most 
vulnerable to natural calamities.
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SECTION 3. Scope. -  This Act shall be applicable to all electric
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cooperatives throughout the country.
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SECTION 4. D efinition of T erm s.- As used in this Act, the following
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shall be defined as:
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a) 
D isaster -  refers to a serious disruption of the functioning of
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a com m unity or a society involving widespread hum an,
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m aterial, economic or environm ental losses and im pacts,
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which exceeds the ability of the affected com m unity or
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society to cope using its own resources. D isasters are often
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described as a result of the com bination of: the exposure to a
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hazard; the conditions of vulnerability th at are present; and
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insufficient capacity or m easures to reduce or cope with the


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potential negative consequences. 
D isaster im pacts may 
include loss of life, injury, disease and other negative effects 
on hum an, physical, m ental and social well-being, together 
with damage to property, destruction of assets, loss of 
services, social and economic disruption and environm ental 
degradation;
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b) 
D isaster Mitigation -  refers to the lessening or limitation of 
the adverse im pacts of hazards and related disasters. 
Mitigation m easures encom pass engineering techniques and 
hazard-resistant 
construction 
as 
well 
as 
improved 
environm ental policies and public awareness;
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c) 
D isaster 
Preparedness- 
refers 
to 
the 
knowledge 
and 
capacities developed by governm ents, professional response 
and recovery organizations, com m unities and individuals to 
effectively anticipate, respond to, and recover from the 
im pacts of likely, im m inent, or current hazard events or 
conditions. Preparedness action is carried out within the 
context of disaster risk reduction and m anagem ent and aim s 
to build the capacities needed to efficiently m anage all types 
of emergencies and achieve orderly transitions from response 
to sustained recovery. Preparedness is based on a sound 
analysis of disaster risk and good linkages with early 
warning 
system s, 
and 
includes 
such 
activities 
as 
contingency planning, stockpiling of equipm ent and supplies, 
the 
development 
of 
arrangem ents 
for 
coordination, 
evacuation and public information, and associated training 
and field exercises. These m ust be supported by formal, 
institutional, legal, and budgetary capacities;
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d) 
D isaster Prevention -  refers to the outright avoidance of 
adverse 
im pacts of hazards 
and 
related 
disasters. 
It 
expresses the concept and intention to completely avoid 
potential adverse im pacts through action taken in advance 
such as construction of dam s or em bankm ents 
that 
eliminate flood risks, land-use regulations th at do not perm it 
any settlem ent in high-risk zones, and seismic engineering 
designs that ensure the survival and function of a critical 
building in any likely earthquake;
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Electric Cooperative -refers to a distribution utility created 
and operating p ursuant to Presidential Decree No. 269, as 
am ended, and other existing laws;


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f) 
Emergency Response Plan -refers to the development and 
preparation of a written and formal plan developed based on 
the results of the Vulnerability and Risk A ssessm ent. 
It 
contains the organizational structure and steps which will 
enable the electric cooperative to restore its system  in a safe 
and timely m anner after a fortuitous event or force majeure;
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g) 
Force Majeure -refers to an event that is a result of elem ents 
of 
nature 
th at 
cannot 
be 
reasonably 
anticipated 
or 
controlled, 
such as, but not limited to typhoon, storm, 
tropical 
depression, 
flood, 
drought, 
volcanic 
eruption, 
earthquake, tidal wave, or landslide;
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h) 
Fortuitous Event -  refers to an act of war (declared or 
undeclared), 
sabotage, 
blockade, 
revolution, 
riot, 
insurrection, civil commotion, or any violent or threatening 
action;
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Joint Congressional 
Power Commission -refers 
to 
the 
Commission created under Republic Act No. 9136;
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j) 
National 
Electrification Adm inistration 
-refers 
to 
the 
government agency created under Presidential Decree 269, 
as amended;
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k) 
National D isaster Risk Reduction and M anagement Fund -  
refers to the calam ity fund appropriated under the Annual 
General Appropriations Act which is used for disaster risk 
reduction 
or 
mitigation, 
prevention 
and 
preparedness 
activities as provided under Republic Act No. 10121;
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l) 
Resiliency Compliance Plan -  refers to a list of projects and 
program s, including the financial requirem ents, funding 
sources, and timeline of im plem entation, necessary to 
protect and mitigate the disaster vulnerability of all its 
infrastructure while taking into account the results of the 
Vulnerability and Risk Assessm ent;
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Restoration or Rehabilitation- refers to the actions or 
activities undertaken by the electric cooperatives to rebuild, 
replace, or repair the necessary facilities to provide reliable 
electric service to m em ber-consum ers after a fortuitous event 
or 
force 
m ajeure, 
taking 
into 
consideration 
designs, 
m aterials, or equipm ent that will make the infrastructure 
more resilient; and
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n) 
Vulnerability and Risk A ssessm ent -  refers to the electric 
cooperative’s 
identification 
of 
critical 
assets 
and 
the


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development 
of 
disaster 
preparedness, 
and 
disaster 
prevention and mitigation m easures to protect, restore, or 
strengthen critical assets prior to the onset of a fortuitous 
event or force majeure.
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CHAPTER II
CREATION AND IMPLEMENTATION 
OF THE ELECTRIC COOPERATIVES 
EMERGENCY AND RESILIENCY FUND
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SECTION 5. C reation of th e  E lectric C ooperatives E m ergency and
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R esiliency Fund. 
-  There is hereby created an Electric Cooperatives
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Emergency and 
Resiliency 
Fund, 
which 
shall 
be 
m anaged 
and
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adm inistered by the National Electrification Adm inistration (NEA).
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SECTION 6. Pow ers and F u n ctio n s of th e  NEA. -The NEA shall have
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the following additional powers and functions:
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a) 
Form ulate policies and coordinate the im plem entation of all
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activities of the electric cooperatives relative to emergency and
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resiliency m anagem ent, in consultation with the National
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D isaster Risk Reduction and M anagem ent Council (NDRRMC);
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b) 
M andate 
electric 
cooperatives 
to 
subm it 
their 
respective
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comprehensive and integrated disaster m anagem ent program s
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such as but not limited to Vulnerability and Risk A ssessm ents
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and Emergency Response Plans, and thereafter establish,
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adm inister, and m onitor the im plem entation of the same;
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c) 
Review, approve, and certify, in consultation with the NDRRMC,
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all activities, including financial requirem ents, of the electric
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cooperatives 
relative 
to 
disaster 
mitigation, 
disaster
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preparedness, and disaster prevention plans as a result of the
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Vulnerability and Risk Assessm ent;
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d) 
Develop 
reasonable 
guidelines 
and 
rational 
docum entary
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requirem ents for electric cooperatives to avail of the Electric
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Cooperatives Emergency and Resiliency Fund;
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e) 
Form ulate an efficient procedure for program  participation and
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criteria for fund allocation;
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f) 
Determine the annual budget of the Electric Cooperatives
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Emergency and Resiliency Fund and subm it the sam e for
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approval by Congress;


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g) 
Receive donations, 
in 
the 
form 
of funds, 
m aterials, 
or 
equipm ent, which are intended for the purpose of addressing 
the restoration of electric cooperatives’ infrastructure damaged 
by a fortuitous event or force m ajeure, subject to existing 
auditing rules and regulations;
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h) 
Provide necessary assistance to electric cooperatives, including
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the preparation of individual Resiliency Compliance Plans for
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incorporation in their respective Distribution Development
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Plans subm itted to NEA;
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i) 
Ensure that the electric cooperatives’ resiliency program s are
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feasible in accordance with sound m anagem ent, economic, and
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engineering standards; and
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j) 
Promulgate such rules and regulations as may be necessary to
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implement the objectives and provisions of this Act.
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SECTION 7. R esponsibilities of th e E lectric C ooperatives.- In
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addition to their prim ary m andate to im plem ent the rural electrification
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program of the country under existing laws, the electric cooperatives
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shall be vested with all the powers necessary to ensure the protection,
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preparedness, and mitigation of the adverse im pact of any fortuitous
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event or force m ajeure to its infrastructure. Electric cooperatives shall
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also ascertain the ability of their m anpower to undertake emergency
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response for the immediate restoration or rehabilitation of their damaged
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infrastructure after a fortuitous event or force majeure.
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The 
electric 
cooperatives 
shall 
likewise 
have 
the 
following
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additional responsibilities:
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a) 
Subm it to NEA a Vulnerability Risk A ssessm ent of all their
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infrastructure in accordance with the NEA-approved template;
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b) 
Prepare and subm it to NEA a Resiliency Compliance Plan, to
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include, a list of projects and program s, including the financial
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requirem ents, funding sources, and timeline of im plem entation,
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necessary to protect and mitigate the disaster vulnerability of all
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its infrastructure;
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c) 
Institutionalize and subm it to NEA an Emergency Response Plan
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to be activated immediately after the occurrence of a fortuitous
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event or force majeure;
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d) 
Comply with NEA’s policies and procedural requirem ents for
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program participation and fund allocation;
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e) 
Subm it reports as may be required by the NEA; and


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f) 
Undertake all other activities necessary to im plem ent the
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objectives and provisions of this Act.
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SECTION 8. The N ational E lectric C ooperatives E m ergency and
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R esiliency Plan (NECERP). -  All electric cooperatives shall subm it to
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NEA an d /o r update their respective Vulnerability and Risk Assessm ents,
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Resilience Compliance Plans, and Emergency Response Plans every year.
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Failure to subm it said reports shall act as a bar to accessing the Electric
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Cooperatives Emergency and Resiliency Fund. The NEA shall m onitor
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and evaluate the use and disbursem ent of the Electric Cooperatives
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Emergency and Resiliency Fund based on the Vulnerability and Risk
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Assessm ent, Emergency Response Plan, and Resiliency Compliance Plan
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of each electric cooperative.
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On the basis of said reports subm itted by the electric cooperatives,
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the NEA shall produce a comprehensive National Electric Cooperatives
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Emergency Resiliency Plan (NECERP) which shall be integrated in the
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National D isaster Risk Reduction and M anagement Plan provided for
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under Republic Act No. 10121. 
The NECERP shall be updated and
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subm itted to the Joint Congressional Power Commission (JCPC) not later
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than March 15 of every year.
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CHAPTER III
FUND SOURCES AND ALLOCATION
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SECTION 9. D onations.-D onations in the form of funds, m aterials, or
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equipm ent, w hether local or international, intended for the express
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purpose 
of 
restoring 
or 
rehabilitating 
the 
electric 
cooperatives
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infrastructure dam aged by a fortuitous event or force m ajeure, shall be
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received directly by the NEA, subject to existing auditing rules and
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regulations and shall be exempt from all duties, fees, taxes, and other
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charges.
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SECTION 10. A ppropriations. -  The sum  of Seven Hundred Fifty Million
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Pesos (Php750,000,000.00) for the initial im plem entation of this Act shall
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be taken from the National D isaster Risk Reduction and M anagement
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Fund. 
Thereafter, 
such 
am ounts 
necessary 
for 
the 
sustainable
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im plementation of this Act shall be included in the annual General
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Appropriations Act.


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SECTION 11. A llocation o f th e  E lectric C ooperatives E m ergency and
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R esiliency F u n d .- The Electric Cooperatives Emergency and Resiliency
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Fund shall be allocated in the following m anner:
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a) Twenty percent (20%) for the electric cooperatives’ disaster 
prevention, 
disaster 
preparedness, 
and 
disaster 
mitigation 
m easures duly approved by the NEA; and
b) Eighty percent (80%) for the restoration or rehabilitation of the 
electric cooperatives’ dam aged infrastructures after a fortuitous 
event or force majeure.
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In case of a deficiency of the fund allocated for the restoration or
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rehabilitation of the electric cooperatives’ dam aged infrastructure after a
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fortuitous event or force m ajeure, the am ount intended for the electric
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cooperatives’ disaster prevention, preparedness, and mitigation m easures
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which has not been released by the NEA to the electric cooperatives shall
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be immediately re-allocated to cover such shortfall.
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In case the am ount of the initial annual budget is not sufficient to
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cover the restoration or rehabilitation costs for the year, the annual
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budget for the succeeding year shall be increased to an am ount
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equivalent to the total expenditures of the previous year’s Electric
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Cooperative Emergency and Resiliency Fund, and such am ount shall be
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m aintained unless there is a need to increase it p u rsu an t to this Section.
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If the Electric Cooperatives Emergency and Resiliency Fund for the
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year is inadequate to cover the restoration or rehabilitation costs for
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electric cooperatives infrastructure dam aged by a fortuitous event or
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force m ajeure, the NEA shall seek for the allocation of supplem entary
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budget corresponding to the outstanding balance from the National
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D isaster Risk Reduction M anagem ent Fund, subject to the approval of
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the President.
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CHAPTER IV 
GENERAL PROVISIONS
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SECTION 12. R eportorial R eq u irem en ts.- The NEA shall take the
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necessary m easures to ensure that the provisions of this Act are properly
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implemented 
and 
subm it 
quarterly 
reports 
on 
the 
program
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im plem entation and fund utilization to the DOE, the JCPC, and the
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Offiee of the President.


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SECTION 13. C ongressional O versight.- Upon the effectivity of this Act,
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the JCPC shall exercise oversight functions over the im plem entation of
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this Act.
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SECTION 14. E valuation.- Within five (5) years after the effectivity of
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this Act, the JCPC shall conduct a system atic evaluation of the
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accom plishm ents and im pact of this Act for purposes of determ ining
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remedial legislation.
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SECTION 15. Im plem enting R ules and R egulations.-T he NEA shall, in
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consultation with relevant governm ent agencies, electric cooperatives,
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and end-users, prom ulgate the Im plementing Rules and Regulations
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within six (6) m onths from the effectivity of this Act.
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SECTION 16. Separability C lause.-If for any reason, any provision of
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this Act is declared unconstitutional or invalid, the other parts or
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provisions hereof which are not affected thereby shall continue to be in
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full force and in effect.
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SECTION 17. R epealing Clause.-Any law, presidential 
decree or
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issuance, executive order, letter of instruction, adm inistrative rule or
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regulation contrary to or inconsistent with the provisions of this Act are
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hereby repealed, modified or am ended accordingly.
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SECTION 18. E ffectivity.-T his Act shall take effect on the fifteenth day
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following its publication in at least two (2) national papers of general
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circulation.
Approved,