Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

fe EIVED
WV 2017
”

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

HOUSE BILL NO. 6668

EXPLANATORY NOTE

The Energy Industry is vital to a continuous economic growth. Most formal
businesses rely on electric power. In fact, the Philippine's fastest growing industry,
Business Process Outsourcing, and the service sector that has the largest GDP
share in the country, are all reliant on electricity. With an expanding economy comes
the need for better efficiency in the energy sector. Although the sector is
characterized by rapidly changing technologies, the economy's needs are outpacing
the Philippine energy sector's capabilities. In Asian Development Bank's Outlook
2013: Asia's Energy Challenge — Asian countries, including the Philippines, are
seen to remain heavily dependent on energy imports until 2035." ADB also predicted
a decline in renewable energy should no initiative be taken: “In the Philippines, the
contribution of [renewable energy] will shrink from 43 percent in 2010 to 14 percent
in 2035, by which time proven indigenous gas and coal reserves will be depleted.”
From 1971 to 2013, the country’s energy imports averaged 45.45% out of the
country's entire energy consumption.”

Due to high cost of energy resources and current lack of local energy resources, the
government must ensure efficient use of current energy resources while developing
more local energy alternatives for the common good. The current and future energy
resources of the country must be managed with minimum energy waste while
reducing harmful emissions. Unfortunately, the country's local and technical research
‘on the energy sector is sparse because of a lack of technical capacity and incentive.
This also echoed within the academe as both academic and policy programs
focusing on energy remains deficient. As a result, government looks to foreign-
funded institutions for assistance in generating the research and/or data they need.
Without proper research, energy policy and regulation would ill serve the country’s
needs

"ADB, Outlook 2013: Asia's Energy Challenge
* hip iw theglobaleconomy comPhiippnesEnergy_imports!


This re-filed version of the bill seeks to bridge research and policy gap in the energy
sector by creating a Philippine Energy Research and Policy Development Institute. It
recognizes the importance of rigorous multidisciplinary research in making sound
energy policies and legislation and thus charges the Institute to undertake
collaborative energy research and policy development among the academe and
stakeholders; provide timely technical assistance to the govemment on energy
issues needing policy direction and advise; create and administer programs intended
to build the capacity of goverment agencies, energy stakeholders, and the
academe; and ensure that the results of energy research and policy development

activities are utilized to improve the energy sector, the economy, and the lives of the
people.

In view of the foregoing, immediate passage of this bill is earnestly sought.

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


Republic of the Philippines
HOUSE OF REPRESENTATIVES,

Queson City

SEVENTEENTH CONGRESS
Second Regular Session

House BILL No, 6668

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

AN ACT ESTABLISHING THE PHILIPPINE ENERGY RESEARCH AND
POLICY INSTITUTE, DEFINING ITS OBJECTIVES, POWERS AND FUNCTIONS,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. Title. — This Act shall be known as the “Philippine Energy Research
and Policy Institute Act of 2017”.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to
ensure energy security, equity, and sustainability. Towards this end, it is also the
policy of the State to enhance knowledge in recent developments and scientific
breakthroughs in the field of energy; identify key policy areas, issues, and challenges
in the country’s energy sector; and formulate multidisciplinary research-based
policies and strategies for the cost-effective use of energy resources towards
environmentally sound energy development.

SECTION 3. Establishment of the Philippine Energy Research and Policy
Institute. - Pursuant to the national policy of enhancing the country’s capability for
energy research and policy development, there is hereby established in the
University of the Philippines (UP) Diliman, a Philippine Energy Research and Policy
Institute, hereinafter referred to as the Institute.

SECTION 4. Objectives of the Institute. - The objectives of the Institute are:


a) To conduct pertinent policy research on energy issues and ensure the
coordination and timely dissemination of results to key government
agencies to guide policy and decision-making processes;

b)

To provide timely technical assistance to the government on energy issues
needing policy direction and advice;

°)

To contribute strategic assistance to the government on energy policy
issues and other related matters;

d)

To promote collaborative and multidisciplinary energy research and policy
development among the academe, and public and private stakeholders;

e)

To establish mechanisms for the dissemination and utilization of research
and policy development outputs;

f) To create and administer training programs and provide fellowship grants
intended to build the capacity of government agencies, public and private
energy stakeholders, and the academe including graduate and post-
graduate students; and

g) To serve as a medium in bringing together local and international experts
in the field of energy through local and international linkages.

SECTION 5. Functions and Powers of the Institute. — The Institute's functions and
powers shall include but not be limited to:

a) Formulating and conducting research and development on energy, public
policy issues in energy markets, and other pressing issues and problems,
all backed by rigorous empirical evidence;

b) Establishing research and policy development programs and capacity-
building trainings on energy;


)

Providing common research support facilities while maximizing the
utilization of its expert support staff;

dq)

Enhancing the masters and doctoral pool of researchers and faculty in the
field of energy;

e)

Establishing local and foreign linkages in energy research and policy
development;

f) Serving as the repository of all energy-related researches and studies to
be generated by the Institute as well as academic, public, and private

groups, organizations, and institutions;

9)

Proposing and allocating its annual budgetary resources while optimizing
resource generation and utilization;

hy

Investing its funds in such undertaking as it may deem wise or necessary
to carry out its objectives, with due consideration to existing guidelines on

investing government funds in coordination with the Bureau of Treasury;
and

i) Receiving and managing grants, aid, donations or any kind of assistance
for achieving its objectives, in accordance with the rules an d regulations
of UP.

The Advisory Council may give additional powers and functions to the Institute
Provided: That it shall be in accordance with the objectives of the Institute as stated
in this Act.

SECTION 6. Organizational Structure. - The Institute shall be headed by an
Executive Director who shall report directly to the Advisory Council. The Institute
shall be supported by a Management Committee and Research Fellows in carrying
out its functions.


SECTION 7. The Executive Director. - The Executive Director shall be a
recognized expert in energy research and policy development and shall have a
strong organizational management background. The UP Board of Regents shall
appoint the Executive Director upon the recommendation of the UP President 60
days after the promulgation of this Act: Provided, That such Executive Director shall
serve for a term of five (5) years which can be renewed for an other five (5) years.

SECTION 8. Functions and Powers of the Executive Director. — The Executive
Director of the Institute shall:

a) Exercise administrative an d supervisory functions over the planning,

implementation, and evaluation of the policies, programs, and projects of
the Institute;

b)

Implement and enforce policies, decisions, orders, rules and regulations
adopted by the Advisory Council;

°)

Recommend to the UP Board of Regents, upon endorsement of the
Advisory Council, the creation of divisions an d sections of the Institute
including the position classification and compensation plan of its
employees;

d)

Recommend to the UP Board of Regents, upon endorsement of the
Advisory Council, the appointment of the Management Committee
members, research fellows, officers and employees of the Institute;

e) Recommend to the Board of Regents, upon recommendation of the
Advisory Council, the overall budget of the Institute;

f) Within the limits of the authority delegated to him by the Advisory Council,
execute contracts, incur obligations, acquire and dispose of assets, and
deliver documents on behalf of the Institute; and


g) Exercise such other powers and functions and perform such other duties
as may be authorized or assigned by the Advisory Council.

SECTION 9. Advisory Council of the Institute. - There shall be an Advisory
Council of the Institute to be com posed of the following:

a) Chancellor of UP Diliman as the Chairperson;
b) Dean of the UP College of Engineering;

c) Dean of the UP College of Law;

) Dean of the UP College of Science;

e) Dean of the UP School of Statistics;

f) Dean of the UP School of Economics; and

i)

One (1) other member who is a recognized expert in energy research and
policy development to be appointed by the UP Board of Regents upon
recommendation of the UP President.

The Executive Director shall concurrently serve as a non-voting Member-Secretary
of the Advisory Council. The Chancellor of UP Diliman, and the Deans of the College
of Engineering, College of Law, College of Science, School of Statistics, and School
of Economics shall serve in an ex-officio capacity. The one other member shall serve
for a term of two (2) years.

SECTION 10. Functions and Powers of the Advisory Council. — The Advisory
Council shall:

a) Determine the general direction and priorities of the Institute in accordance
with this Act;

b) Determine research and policy areas for study and investigation by the
Institute based on its evaluation of the energy policy landscape including
the needs and demands of the country and the people;


°)

d)

e)

9)

h}

Provide advice to the Institute on any matter relating to the development of
a research and/or policy area and the administration of research and
policy programs;

Provide advice to the Institute on matters relating to the position
classification and compensation plans of the employees of the Institute in
coordination with the Department of Budget and Management;

Endorse to the UP Board of Regents the recommended divisions and
sections of the Institute including the position classification and
compensation plans of its employees;

Endorse to the UP Board of Regents the recommended Management
Committee members, research fellows, officers, and employees of the
Institute;

Endorse to the UP Board of Regents the Institute's overall budget as
recommended by the Executive Director;

Generate resources and obtain logistical and financial support for the
Programs and component units of the Institute: Provided, That in so doing,
no conflict-of-interest exists with the objectives of this Act and the
functions of the Institute;

Monitor and review all the activities and operations of the Institute as
implemented by the Executive Director, and

Authorize and/or assign additional powers, functions, and duties to the
Executive Director in accordance with the objectives of this Act.

SECTION 11. Appointment of Faculty and Staff. - The human resource
complement of the Institute shall be organized and set-up by the Executive Director
in accordance with the provisions of this Act, the existing rules and regulations of
UP, and upon approval by the UP Board of Regents.


SECTION 12. Public Access. — The public and other energy institutions shall have
access to the research findings, facilities, and other resources of the Institute, as
provided in the implementing rules and regulations of this Act. Provided, it is in
accordance with Section 13 of this Act

SECTION 13. Confidentiality. - The Institute shall not disclose any proprietary
and/or confidential data and other resources unless prior consent of the source or
owner of such data and resources has been obtained by the requesting party.

SECTION 14. Endowment Fund. - An Endowment Fund is hereby established for
the support of the Institute, including the purchase of research equipment and
facilities, compensation and honoraria to researchers, whether in government

service or otherwise, and such other necessary expenses to carry out the purpose of
this Act.

The Institute is authorized to accept into its Endowment Fund any contributions,
donations, bequests, grants, and loans from domestic and/or foreign sources,
government appropriations and other incomes accruing from the operations of the
Institute, for purposes of executing its mandate and functions: Provided, That in so

doing, no conflict-of-interest exists with the objectives of this Act and the functions of
the Institute.

For the organizational and operational requirements of the Institute, there is hereby
appropriated out of the General Appropriations Act, the sum of Two Hundred Million
Pesos (PhP200,000,000.00) for the initial operating fund of the Institute. Thereafter,
an annual amount of Two Hundred Million Pesos (PhP 200,000,000.00) will be
appropriated from the General Appropriations Act to support the research, policy
development, and training programs of the Institute. This amount will be assessed
annually and increased, if necessary. based on the annual financial plan approved
by the UP Board of Regents and submitted to the Department of Budget and
Management.


SECTION 15. Tax Exemptions. — The Institute shall be entitled to all the tax
exemptions enumerated under Section 25 of Republic Act No. 9500 or the University
of the Philippines Charter of 2008.

SECTION 16. Implementing Rules and Regulations. — Within sixty 60 days from
the effectivity of this Act, the Institute, in consultation with its Advisory Council and
subject to the approval of the Board of Regents, shall promulgate the necessary
implementing rules and regulations of this Act.

SECTION 17. Separability Clause. — If, for any reason, any provision of this Act is
declared to be unconstitutional or invalid, the other provisions hereof which are not
affected thereby shall continue to be in full force or effect.

SECTION 18. Repealing Clause. — All laws, decrees, orders, rules and regulations
or parts thereof which are in consistent with or contrary to the provisions of this Act

are hereby repealed, am ended or modified accordingly.

SECTION 19. Effectivity. -This Act shall take effect fifteen (15) days after its
Publication in at least two (2) national newspapers of general circulation.

Approved,