RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2490
HOUSE BILL NO.

Introduced by Rep. Precious Hipolito Castelo

EXPLANATORY NOTE

Since the creation of the Energy Development Board in 1976 pursuant to PD No. 910 on
start up appropriation of P5 million, ‘the fees, revenues and receipts from any and all source
including receipts from service contracts and agreements; all money collected from
concessionaires as government share representing royalties, rentals, production share on
service contracts and similar resources’ have formed part of s Special Fund to finance
energy resource development and for other purposes as the President may direct’ — have
already ballooned to nearly reach the P80 billion threshold as in the case of the Malampaya
Natural Gas Project.

But until the law is amended, the fund is deemed part of a Special Fund well within the
Board to administer in accordance with its power under PD No. 910 to finance energy-
elated programs and projects of government. Additionally, for other such purposes, the
President may so direct use of such funds.

This bill therefore contemplates that the funds of the Malampaya Natural Gas Project, now in
the near P80 billion mark, said to be ‘floating up in budget clouds’ be channelled to the
General Fund. This may mean a shift or transfer from being a Special Fund to a General
Fund category. In this way, it shall be included in the Budget of Expenditures and Sources
of Financing (BESF) of the General Appropriations ACT (GAA) rendering the funds subject
to reasonable, transparent and democratic utilization based on projected expenditures.

Truth is, this bill serves as what is termed as ‘appropriations cover from Congress’ so it will
now be treated not as special fund, not as off-budget item but rather as General Fund and as
on-budget item that can be prioritized for general utilization.

‘Amending the important provisions of PD No. 910, subject of this measure, is the key to the
fullest utilization of the proceeds that have already accumulated which should justifiably
cascade to address not just economic growth but should redound to the general public
welfare just as well

Passage of this bill is highly sought.

JUL 2.3 2018



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House BILL No 4S?

Introduced by Rep. Precious Hipolito Castelo

AN ACT
AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE NO. 910 CREATING AN
ENERGY DEVELOPMENT BOARD, DEFINING ITS POWERS AND FUNCTIONS,
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Republic of the Philippines
in Congress assembled:

Section 1 of Presidential Decree No. 910 is hereby amended to read as follows:

“Section 1. Declaration of Policy. It is declared policy of the State to achieve self-reliance in
the country’s energy requirements primarily through the intensified and coordinated
exploration and development of indigenous energy resources in order to accelerate overall
economic growth and general public welfare.”

Section 8 of Presidential Decree No. 910 is hereby amended to read as follows:

“Section 8. Appropriations. The sum of Five Million Pesos out of any available funds from
the National Treasury is hereby appropriated and authorized to be released for the
organization of the Board and its initial operations. Henceforth, funds sufficient to carry out
the functions and objectives of the Board shall be appropriated every fiscal year in the
General Appropriations Act

All fees, revenues and receipts of the Board from any and all sources including receipts from
service contracts and agreements such as application and processing fees, signature bonus,
discovery bonus, production bonus; all money collected from concessionaires, representing
unspent work obligations, fines and penalties under the Petroleum Act of 1949; as well as
the government share representing royalties, rentals, production share on service contracts
and similar payments on the exploration, development and exploitation of energy resources,
shall form part of the General Fund to be used to finance energy resource development and
exploitation programs and projects of the government and for such other purposes that
redound to general public welfare as may be hereafter directed the President.”

Approved,