Presidential Decree No. 1573
AMENDING PRESIDENTIAL DECREE NO. 1206
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;
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
SECTION 1. Section 6 of Presidential Decree No. 1206 is hereby amended to read as follows:
“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:
“(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;
“(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:
“(c) Exercise such powers and functions of
the Energy Development Board as shall hereafter be transferred to it;
“(d)
Issue subpoena and summon witnesses to appear in any proceeding before
the Bureau;
“(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;
“(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.”
SEC. 2. Section 7 of the same Decree is hereby amended to read as follows:
“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:
“(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;
“(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;
“(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;
“(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;
“(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;
“(f) Formulate, develop, and periodically
review and revise as necessary, a comprehensive national energy conservation
program;
“(g) Conduct energy audit of energy-consuming
establishments to evaluate and help improve energy utilization efficiency;
“(h) Develop and adopt energy utilization
standards;
“(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
“(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.
SEC. 3. Section 9 of the same Decree is hereby amended to read as follows:
“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
“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.
“The
Board shall, after due notice
and hearing where necessary, exercise the following powers and functions, among
others:
“(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.
“(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;
“(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;
“(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
“(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.”
SEC. 4. Section 12 (B) (iv) and Section 12(C) of the same Decree are hereby amended to read as follows:
“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:
“(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;
“(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;
“(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;
“(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;
“(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:
“(a) Volume, weight, type,
import price, and supplier of crude oil and petroleum products imported;
“(c) Audited financial
statements of petroleum refineries and marketing companies;
“(d)
Data on exported products, price of same, country of destination, and vessel
used;
“(e) Listed wholesale price
of gasoline on a monthly basis;
“(g) Cost of 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.”
SEC. 5. Section 19 of the same Decree is hereby amended to read as follows:
“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.
SEC. 6. Section 20 of the same Decree is amended to read as follows:
“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
(P 10,000,000.00) 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.
“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.”
SEC. 7. This Decree shall take effect immediately.
Done in the City of
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