WHEREAS,
Presidential Decree No. 1206 vested the Department of Energy and its
Bureaus with regulatory powers over business activities dealing in the
exploration, utilization development and distribution of energy
resources;chanroblesvirtualawlibrary
WHEREAS, it is necessary to provide the Department of Energy and its
Bureaus with sufficient means and remedies through which they can
effectively exercise and enforce their regulatory powers; and
WHEREAS, in view of the foregoing considerations, it has become
necessary to amend Presidential Decree No. 1206.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree as follows:cralaw:red
Section 1. Section 6 of Presidential Decree No. 1206
is hereby amended to read as follows:cralaw:red
"Sec. 6. Bureau of Energy Development. — There is
created in the Department a Bureau of Energy Development, hereinafter
referred in this Section as the Bureau, which shall have the following
powers and functions, among others: chanroblesvirtualawlibrary
"a. Administer a national program for the
encouragement, guidance and whenever necessary, regulation of business
activities relative to the exploration, exploitation, development and
extraction of fossil fuels such as petroleum, coal, natural gas and gas
liquids, nuclear fuel resources; geothermal energy resources; and
non-conventional forms of energy resources;chanroblesvirtualawlibrary
"b. Undertake by itself or cause the undertaking by
other institutions, government or private, of intensive research and
development to achieve the country's self-reliance and conservation
program relative to energy resources:cralaw:red
"c. Exercise such powers and functions of the Energy
Development Board as shall hereafter be transferred to it;chanroblesvirtualawlibrary
"d. Issue subpoena and summon witnesses to appear in
any proceeding before the Bureau; chanroblesvirtualawlibrary
"e. In addition to fines and/or penalties arising
from contractual violations, to impose and collect, after due notice
and hearing, a fine not exceeding One Thousand Pesos for every
violation or non-compliance with any provision of Presidential Decree
No. 87, Presidential Decree No. 972, as amended, Presidential Decree
No. 1068 or any other laws being implemented by the Bureau, the rules
and regulations promulgated thereunder, its orders, decisions and
rulings, or of any permit or license issued by it.
"The fine so imposed shall be paid to the Bureau, and failure to pay
the fine within the time specified in the order or decision of the
Bureau or failure to cease and discontinue the violation or
non-compliance shall be deemed good and sufficient reason for the
suspension, closure or stoppage of operations of the establishment of
the person guilty of the violation or non-compliance. In case the
violation or default is committed by a corporation or association, the
manager or the person who has charge of the management of the
corporation or association and the officers or directors thereof who
have ordered or authorized the violation or default shall be solidarily
liable for the payment of the fine.
"The Bureau shall have the power and authority to issue corresponding
writs of execution directing the City Sheriff or Provincial Sheriff or
other peace officers whom it may appoint to enforce the fine or the
order of closure, suspension or stoppage of operations. Payment may
also be enforced by appropriate action brought in a court of competent
jurisdiction. The remedy provided herein shall not be a bar to or
affect any other remedy under existing laws, but shall be cumulative
and additional to such remedies.
"f. After due notice and hearing in an order to be
promulgated by the Director of Energy Development, forfeit in favor of
the Bureau, surety performance, and guaranty bonds issued in favor of
said Bureau;chanroblesvirtualawlibrary
"g. Promulgate such rules and regulations as may be
necessary, subject to the approval of the Secretary, for the efficient
and effective exercise of its powers and functions.
"The decisions, orders, resolutions or actions of the Bureau may be
appealed to the Secretary whose decisions are final and executory
unless execution thereof is enjoined by the President."
Section 2. Section 7 of the same Decree is hereby
amended to read as follows:cralaw:red
"Sec. 7. Bureau of Energy Utilization. — There is
created in the Department a Bureau of Energy Utilization, hereinafter
referred to in this Section as the Bureau, which shall have the
following powers and functions, among others:cralaw:red
"a. Administer a national program for the
encouragement, guidance and, where necessary, regulation of such
business activities as importing, exporting, storing, shipping,
transporting, refining, processing, marketing, and distributing of
energy resources. Energy resources mean any substance by itself or in
combination with others, or after processing or refining or the
application to it of technology, emanates, generates or causes the
emanation or generation of energy, such as but not limited to petroleum
products, coal, marsh gas, methane gas, geothermal and hydroelectric
sources of energy, uranium and other similar radioactive minerals,
solar energy, tidal power as well as non-conventional existing and
potential sources;chanroblesvirtualawlibrary
"b. Exercise such powers and functions of the Oil
Industry Commission under Republic Act No. 6173, as amended, which are
hereafter transferred to it under Section 12 of this Decree;chanroblesvirtualawlibrary
"c. Set conditions which would accomplish the
purposes of this Decree and Republic Act No. 6173, as amended, under
which persons, natural or juridical, can engage or continue engaging in
the business of importing, processing, exporting, re-exporting,
shipping, transporting, refining, storing, distributing, marketing, or
selling crude oil, gasoline, kerosene, gas and other refined petroleum
products or by-products;chanroblesvirtualawlibrary
"d. Impose and collect application, registration and
license fees or charges. If said fees or charges are not paid within
the time prescribed by the Bureau, the amount thereof shall be
increased by twenty-five per centum, the increment to become part of
the fee or charge;chanroblesvirtualawlibrary
"e. After due notice and hearing, impose and collect
a fine not exceeding One Thousand Pesos, for every violation or
non-compliance with any term or condition of any certificate, license,
or permit issued by the Bureau or of any of its orders, decisions,
rules or regulations.
"The fine so imposed shall be paid to the Bureau, and failure to pay
the fine within the time specified in the order or decision of the
Bureau or failure to cease and discontinue the violation or
non-compliance shall be deemed good and sufficient reason for the
suspension, closure or stoppage of operations of the establishment of
the person guilty of the violation or non-compliance. In case the
violation or default is committed by a corporation or association, the
manager or the person who has charge of the management of the
corporation or association and the officers or directors thereof who
have ordered or authorized the violation or default shall be solidarily
liable for the payment of the fine.
"The Bureau shall have the power and authority to issue corresponding
writs of execution directing the City Sheriff or provincial Sheriff or
other peace officers whom it may appoint to enforce the fine or the
order of closure, suspension or stoppage of operations. Payment may
also be enforced by appropriate action brought in a court of competent
jurisdiction. The remedy provided herein shall not be a bar to or
affect any other remedy under existing laws, but shall be cumulative
and additional to such remedies;chanroblesvirtualawlibrary
"f. Formulate, develop, and periodically review and
revise as necessary, a comprehensive national energy conservation
program;chanroblesvirtualawlibrary
"g. Conduct energy audit of energy-consuming
establishments to evaluate and help improve energy utilization
efficiency;chanroblesvirtualawlibrary
"h. Develop and adopt energy utilization standards;chanroblesvirtualawlibrary
"i. Require energy-intensive projects and
establishments to submit an energy impact assessment to cover: energy
utilization efficiency of proposed project; project operation
timetable; projected production and energy consumption; effect of
project on the energy network system of affected area; comparison of
different fuel and site alternatives to assure most economical energy
cost with due consideration to overall project economics; and chanroblesvirtualawlibrary
"j. Promulgate, subject to the approval of the
Secretary, such rules and regulations as may be necessary for the
efficient and effective exercise of its powers and discharge of its
functions.
"The decisions, orders, resolutions or actions of the Bureau may be
appealed to the Secretary whose decisions are final and executory
unless execution thereof is enjoined by the President.
Section 3. Section 9 of the same Decree is hereby
amended to read as follows:cralaw:red
"Sec. 9. Board of Energy. — There is hereby created a
Board of Energy, hereafter referred to in this Section as the Board,
which shall be under the supervision and control of the Office of the
President, and shall be composed of a Chairman and two (2) members to
be appointed by the President. It shall be assisted by such technical
and supportive staffs as it may appoint for the effective and efficient
discharge of its powers and functions.
"The Chairman and members of the Board shall be natural-born citizens
and residents of the Philippines, of good moral character and at least
thirty-five years old. The Chairman shall be a lawyer with substantial
experience in the practice of law. The members shall be of recognized
competence in the field of economics, finance, banking, commerce
industry, agriculture, engineering, management, law or labor.
"No person who has worked within three (3) years immediately prior to
his appointment or is working in any privately-owned firm engaged in
the petroleum or electric industry or any other entity whose main
business is directly related to or connected with any such firm shall
be appointed to the Board. This disqualification shall not apply to
persons employed by or in the employ of government-owned or controlled
corporations engaged in the petroleum or electric industry.
"The term of office of the Chairman and members shall be four (4)
years, but the first Chairman appointed shall hold office for four (4)
years, and of the first two (2) members appointed, one (1) shall hold
office for a term of three (3) years, and the other for a term of two
(2) years.
"The Chairman of the Board shall receive a compensation of fifty-four
thousand pesos annually, while the members shall each receive an annual
compensation of forty-eight thousand pesos, together with such
allowances as are presently enjoyed by the Chairman and members of the
abolished Oil Industry Commission. chanroblesvirtualawlibrary
"The Board shall, after due notice and hearing where necessary,
exercise the following powers and functions, among others:cralaw:red
"a. Regulate and fix the prices of petroleum
products, and exercise such other powers and functions of the Oil
Industry Commission under Republic Act No. 6173, as amended, which are
hereafter transferred to it under Section 12 of this Decree;chanroblesvirtualawlibrary
"b. Regulate and fix the rate schedule or prices of
piped gas to be charged by duly franchised gas companies which
distribute gas by means of underground pipe system;chanroblesvirtualawlibrary
"c. Regulate and fix the power rates to be charged by
electric companies except (1) electric cooperative which shall continue
to be governed by Presidential Decree No. 269, as amended, and (2) the
National Power Corporation which shall continue to be governed by
Republic Act No. 6395, as amended;chanroblesvirtualawlibrary
"d. Perform such other powers and functions as may be
necessary, including the licensing of refineries and regulation of
their capacities; reviewing the importation costs of crude oil and
providing appropriate remedies for unreasonable or out of line prices
and shipping costs thereof; and taking adequate measures to insure that
extraordinary gains arising from an increase in the prices of petroleum
products redound to the public interest, including payment by persons
or entities engaged in the petroleum business to the Special Fund
created under Section 8(j) of Republic Act No. 6173, as amended:
Provided, That the purposes of such Special Fund are hereby broadened
to include its utilization for all energy projects; and chanroblesvirtualawlibrary
"e. Issue Certificates of Public Convenience for the
operation of electric power utilities and services, except electric
cooperatives which shall continue to be governed by Presidential Decree
No. 269, as amended, including the establishment and regulation of
areas of operation of particular operators of public power utilities
and services, and fixing of standards and specifications in all cases
related to the issued Certificates of Public Convenience, and the
promulgation of rules and requiring the operators concerned to install
such devices and adopt such procedures as would promote or insure the
highest degree of safety and convenience to persons and property.
"The provisions of Section 11 and 12, Republic Act No. 6173, as amended
by Presidential Decree No. 1128, shall govern proceedings before the
Board, the mode of review of its decisions or orders, including its
authority to grant provisional relief."
Section 4. Section 12 (B) (iv) and Section 12(C) of
the same Decree are hereby amended to read as follows:cralaw:red
"iv. Except as otherwise specifically provided, the
following powers and functions of the abolished Oil Industry Commission
under Republic Act No. 6173, as amended, are transferred either to the
Bureau of Energy Utilization or the Board of Energy, or both, to the
extent applicable and appropriate in the light of the foregoing
transfers of powers and functions:cralaw:red
"(1) Require importers of crude oil and petroleum
products to file data on their import and shipping costs as well as
other material information relative thereto; chanroblesvirtualawlibrary
"(2) Require all persons, corporations and other
entities engaged in the petroleum industry and their associations or
institutes, to furnish it with such relevant information as it may need
in the discharge of its duties;chanroblesvirtualawlibrary
"(3) Issue subpoena and subpoena duces tecum in any
inquiry, study, hearing, investigation, or proceedings which it may
decide to undertake in the exercise of its powers and functions;chanroblesvirtualawlibrary
"(4) Promulgate rules and regulations relevant to
procedures governing hearings before it and enforce compliance with any
rule, regulation, order, or other requirement: Provided, That said
rules and regulations shall take effect fifteen days after publication
in the Official Gazette;chanroblesvirtualawlibrary
"(5) Perform such other acts as may be necessary or
conducive to the exercise of its powers and functions; and
"(6) Undertake a continuing study of the petroleum
industry in its domestic and international aspects, gather and collate
information and statistics bearing on the industry, submit an annual
report to the President of the Philippines on its activities and the
results of its studies, including therein such matters as it may deem
appropriate subjects of legislation or executive action; and keep
itself regularly and thoroughly informed of conditions in the industry
in order to enable it to perform its functions, exercise its powers and
discharge its duties effectively.
"The annual report shall include, among others, the following data on a
company-by-company basis:cralaw:red
"(a) Volume, weight, type, import price, and supplier
of crude oil and petroleum products imported;chanroblesvirtualawlibrary
"(b) Tonnage type, nationality and ownership of
vessels used in importing crude oil and petroleum products, as well as
shipping costs;chanroblesvirtualawlibrary
"(c) Audited financial statements of petroleum
refineries and marketing companies;chanroblesvirtualawlibrary
"(d) Data on exported products, price of same,
country of destination, and vessel used;chanroblesvirtualawlibrary
"(e) Listed wholesale price of gasoline on a monthly
basis;chanroblesvirtualawlibrary
"(f) Posted and market prices crude oil at sources of
importation and other known sources of crude oil supply; and
"(g) Cost refining petroleum products."
"C. The powers and functions of the Philippine
National Oil Company relating to the regulation of oil or petroleum
operations, as defined in Presidential Decree No. 334, as amended,
including the importation of refined petroleum products, are hereby
transferred to the Department of its bureaus as appropriate."
Section 5. Section 19 of the same Decree is hereby
amended to read as follows:cralaw:red
"Sec. 19. Benefits of Personnel Who May Be Laid Off
and Incentives of Employees. — Personnel of agencies abolished or
otherwise affected by this reorganization who are laid off as a result
of the implementation of this Decree shall be entitled to benefits and
privileges provided for under Sections 5 and 6 of Republic Act No.
5435, as amended. chanroblesvirtualawlibrary
Section 6. Section 20 of the same Decree is amended
to read as follows:cralaw:red
"Sec. 20. Appropriation. — To carry out the purposes
of this Decree there is hereby appropriated out of any funds in the
National Treasury not otherwise appropriated, the sum of Ten million
pesos (P10,000,000.00) for the operation of the Department and its
Bureaus, including such amount thereof as may be needed to augment the
appropriations of the Board of Energy, for the remaining period of FY
1978 in addition to whatever applicable appropriation that may be
transferred to it from among the government agencies reorganized under
this Decree. Thereafter, the appropriation for the Department, its
bureaus and the Board of Energy shall be included in the Annual General
Appropriation Act. chanroblesvirtualawlibrary
"Subject to existing rules and regulations, the funds and monies,
collected or which otherwise come into the possession of the
Department, its Bureaus and the Philippine Atomic Energy Commission
from fees, surcharges, fines and penalties which they are authorized to
impose and collect including those under Section 4(c), Section 6 (e),
Section 7(d) and (e) of this Decree as well as an amount to be
determined at the beginning of every fiscal year representing ten
percent (10%) of the outstanding balance of funds and monies, forming
part of the Special Fund under Section (g) of Presidential Decree No.
910, shall be disbursed for the health, welfare and other similar
benefits of their personnel; for the acquisition, maintenance and
repair of urgently needed equipment and for expenses necessary for the
effective discharge of their powers and functions under this Decree.
"Provisions of existing laws, rules and regulations to the contrary
notwithstanding, officials and employees of government departments,
bureaus, offices, instrumentalities including government-owned and
controlled corporations, may be appointed in the interest of the
service to serve through temporary detail assignment in the Department
of Energy, its Bureaus, and Commissions as well as the Board of Energy
and may receive allowances and other emoluments therefrom, in addition
to their regular compensation from their permanent office of
employment."
Section 7. This Decree shall take effect immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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