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PRESIDENTIAL DECREE NO. 1068
PRESIDENTIAL DECREE NO. 1068 -
DIRECTING THE ACCELERATION OF RESEARCH, DEVELOPMENT AND UTILIZATION OF
NON-CONVENTIONAL ENERGY RESOURCES AND VESTING IN THE ENERGY DEVELOPMENT
BOARD POWERS AND FUNCTIONS IN CONNECTION THEREWITH, AND FOR OTHER
PURPOSES
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WHEREAS, it
is imperative to accelerate the development not only of indigenous
conventional energy resources but also of those non-conventional
alternatives which have great potential for immediate and future
applications such as but not limited to solar, wind, tidal and bio-mass
energy;chanroblesvirtualawlibrary
WHEREAS, it is essential in the interest of efficiency, economy and
effectiveness to integrate in a single governmental entity the
planning, coordination and control of the research, development and
utilization efforts and programs in non-conventional forms of energy
resources of the various government agencies and instrumentalities,
including government owned and controlled corporations;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers and functions vested in me by the Constitution,
do hereby order and decree the following as part of the law of the land:cralaw:red
Section 1 — DECLARATION OF POLICY
It is the declared policy of the State to achieve self-reliance in the
country's energy requirements primarily through the intensified
exploration, development, exploitation and utilization of indigenous
conventional energy resources such as petroleum, coal, natural gas and
liquids, water and geothermal resources and nuclear fuel resources; and
non-conventional alternatives such as solar, wind, tidal and bio-mass
energy which have great potential for immediate and future
applications. In furtherance of this policy there is an urgent need to
coordinate, integrate and control the pursuit of research, development
and utilization efforts of all government agencies and
instrumentalities pursuant to and in accordance with a comprehensive
national energy program.
Section 2 — DEFINITION OF TERMS
As used in this Decree, the following words and phrases shall have the
following respective meanings:cralaw:red
(a) Non-Conventional Energy Resources refers to those
energy resources in which the conversion or utilization technology for
large-scale (megawatt level) applications are not as well-developed
and/or widely use as those for fossil fuels, hydrogeothermal and
conventional nuclear. In general, these resources would include the
direct and indirect forms of solar, tidal nuclear converter and breeder
reactors and fusion.
(b) Direct Solar Energy means the energy content of
solar radiation harnessed by collecting sunlight in man-made devices
such as flat-plate or focusing solar collectors.
(c) Indirect Solar Energy means the energy content of
solar radiation harnessed by initially collecting sunlight in a natural
manner such as absorption by land, atmosphere, ocean surface and
plants. This natural collection mode gives rise to winds (by thermal
gradients in the atmosphere), produces organic matter or bio-mass and
creates ocean thermal gradients between the surface and its depths.
(d) Bio-mass refers to organic matter, whether living
or not. This would include, among others, trees, algae, animal and
agricultural wastes and decaying plants in swamps.
(e) Bio-conversion to Fuels refer to the various
processes, natural or synthetic, by which a solid, liquid or gaseous
fuel is produced by utilizing bio-mass feedstock, e.g. anaerobic
fermentation of animal manure to yield bio-gas; combustion of firewood
to yield heat, steam or power, fermentation of agricultural crops or
by-products to yield substitute fuels such as alcohol.
(f) Bio-gas is a fuel gas consisting of 50-70%
methane and the rest non-combustible gases produced by the anaerobic
fermentation of organic waste.
(g) Energy Plantation is a scheme whereby
fast-growing crops or trees such as ipil-ipil are deliberately and
systematically planted in order to continuously provide fuel to a power
generating station located at the site.
(h) Comprehensive national energy program for
purposes of this Decree is a program of research, development or
utilization of non-conventional energy resources duly approved by the
Energy Development Board.
Section 3 — POWERS AND FUNCTIONS OF THE ENERGY DEVELOPMENT BOARD
In addition to its powers and functions enumerated in Presidential
Decree No. 910 and other laws, rules and regulations, the Energy
Development Board shall exercise the following powers and functions:cralaw:red
1. Formulate and direct the implementation of a
comprehensive national energy program, subject to periodic review and
revisions on non-conventional energy research, development and
utilization.
2. Integrate, coordinate, direct and control all
research, development and utilization efforts, programs and projects in
non-conventional energy resources of all government agencies and
instrumentalities including government owned and controlled
corporations.
3. Review and approve all on-going or planned
research, development and utilization projects on non-conventional
energy whether basic or applied in nature, supported or planned to be
supported by government funds or funds obtainable elsewhere through
government intercession or assistance.
4. Formulate criteria for determining priority for
proposed research, development and utilization projects on
non-conventional energy resources and accordingly identify and select
execution, financing and funding schemes.
5. Designate project implementors, coordinate and
monitor the progress of all projects and activities, on-going or
planned projects, in the implementation of the comprehensive national
energy program.
6. Provide necessary and appropriate supportive
efforts to the non-conventional energy research, development and
utilization program such as the launching of a vigorous information and
promotions drive assistance and entry of suitable foreign expertise in
order to accelerate the pace of local research, development and
utilization and the training of qualified Filipino personnel in the
various aspects of non-conventional energy, proliferation of those
applications in which technologies have proven viable, such as bio-gas
generation, windmills for water, pumping and power generation from
agricultural and industrial wastes, establishment of demonstration
systems like solar water heaters, solarr-conditioning and energy
plantations.
7. Develop and implement specific programs requiring
the participation not only of government agencies and instrumentalities
but also the private sector.
8. Grant incentives provided for herein and propose
and recommend the grant of such other incentives as shall be necessary
and appropriate to enterprises, industries and individuals who shall
conduct their own or participate in research and development or apply
currently available non-conventional energy technology to their
industrial processes or homes.
9. Promulgate such rules and regulations as may be
necessary to implement the objectives and provisions of this Decree.
Section 4 — INCENTIVES
The provisions of any law to the contrary notwithstanding any person,
whether natural or juridical, who will directly participate in the
national program to accelerate research, development and utilization of
non-conventional energy sources shall have the following privileges:cralaw:red
(a) Costs incurred in the establishment and
construction of non-conventional energy conversion facilities or
equipment duly certified by the Energy Development Board may, at the
option of the taxpayer, be directly chargeable to expense and shall
fully deductible as such from gross income in the year wherein such
expenses were incurred.
(b) Exemption from payment of tariff duties and
compensating tax on the importation of machinery and equipment, and
spare parts and all materials required in the establishment and
construction of non-conventional energy facilities or equipment subject
to the conditions that said machinery, equipment, spare parts and
materials of comparable price and quality are not manufactured
domestically; are directly and actually needed and will be used
exclusively by the taxpayer in the establishment and construction of
non-conventional facilities or equipment; are covered by shipping
documents in the name of the taxpayer to whom the shipment will be
delivered direct by the customs authorities; and prior approval of the
Energy Development Board was obtained by the taxpayer before the
importation of such machinery, equipment spare parts and materials
which approval shall not be unreasonably withheld: Provided, however,
that the taxpayer may not sell, transfer or dispose of these machinery,
equipment, spare parts or materials without the prior approval of the
Energy Development Board and payment of taxes due the government:
Provided, further, that should the taxpayer sell, transfer, or dispose
of these machinery, equipment, spare parts or materials without the
prior consent of the Energy Development Board, it shall be twice the
amount of the Tax exemption granted: Provided, finally that the Energy
Development Board shall allow and approve the sale, transfer, or
disposition of the said items without tax, if made: (1) to another
taxpayer who will establish and construct non-conventional energy
conversion facilities or equipment; (2) for reason of technical
obsofescence; or (3) for purposes of replacement to improve and/or
expand the operations of the taxpayer.
(c) Government financial institutions such as the
Development Bank of the Philippines, the Philippine National Bank, the
Government Service Insurance System, the Land Bank of the Philippines
and such other government institutions as are now engaged or may
hereafter engage in financing of investment operations shall, in
accordance with and to the extent allowed by the enabling provisions of
their respective charters or applicable laws, accord high priority to
applications for financial assistance by
individuals/enterprises/industries participating in the national
program to accelerate the research, development and utilization of
non-conventional energy sources, as duly recommended and endorsed by
the Energy Development Board.
Section 5 — ASSISTANCE BY OTHER GOVERNMENT AGENCIES/OFFICES AND
CORPORATIONS
All government agencies and instrumentalities including government
owned or controlled corporations in addition to being implementors of
the comprehensive national energy program when so designated, shall
extend whatever assistance that may be required by the Energy
Development Board, including but not limited to the detail to the Board
of such of their employees, scientists and technical personnel.
Section 6 — APPROPRIATIONS
The sum of TEN MILLION PESOS (P10,000,000.00) is hereby appropriated
out of any available funds in the National Treasury not otherwise
appropriated as operating funds of the Energy Development Board to
fully carry out and implement the functions and objectives provided in
this Decree for the period from the effective date of this Decree up to
and including the fiscal year ending December 31, 1977. Thereafter,
amounts required by the Energy Development Board shall be included
annually in the general Appropriation Decree.
Section 7 — REPEALING CLAUSE
All laws, decrees, orders, rules and regulations or parts thereof which
are inconsistent with any of the provisions of this Decree are hereby
repealed or modified accordingly.
Section 8 — EFFECTIVITY
This Decree shall take effect immediately.
Done in the City of Manila,
this 13th day of January, in the year of Our Lord, nineteen hundred,
and seventy-seven.
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