Mar 072013

Republic of the Philippines

   House of Representatives

Quezon City, Metro Manila


           Second Regular Session

First Regular Session First Regular SessionFirst Regular Session First Regular SessionFirst Regular SessionFirst Regular Session

HOUSE BILL NO. __________

(As prepared by the Committees on Energy and Appropriations

In substitution of House Bills No. 1039 & 4631 and

House Resolutions No. 250 & 257)

Introduced by Representatives Mikey Macapagal Arroyo, Mark O. Cojuangco, Jose G. Solis, Roger G. Mercado, Herminia B. Roman, Amelita C. Villarosa, Salvador H. Escudero III, Simeon A. Datumanong, Matias V. Defensor, Jr., Nerissa Corazon Soon-Ruiz, Benhur L. Salimbangon, Eric D. Singson, Jeci A. Lapus, Eduardo Nonato N. Joson, Samuel M. Dangwa, Manuel S. Agyao, Genaro M. Alvarez, Jr., Ignacio T. Arroyo, Pangalian M. Balindong, Franklin P. Bautista, Erwin L. Chiongbian, Nelson L. Dayanghirang, Carlo Oliver D. Diasnes, Ramon Durano VI, Orlando B. Fua, Pablo P. Garcia, Judy J. Syjuco, Nur G. Jaafar, Antonio F. Lagdameo, Jr., Julio A. Ledesma IV, Hermilando I. Mandanas, Ma. Milagros H. Magsaysay, Datu Pax S. Mangudadatu, Rodolfo Rodrigo G. Plaza, Carlos M. Padilla, Herminia M. Ramiro, Carmencita O. Reyes, Jose Antonio F. Roxas, Monica Louise Prieto-Teodoro, Edelmiro A. Amante, Mauricio G. Domogan, Rexlon T. Gatchalian, Arthur F. Celeste, Didagen P. Dilangalen, Victor Francis C. Ortega, Adam Relson L. Jala, Pedro P. Romualdo, Lorna C. Silverio, Candido P. Pancrudo, Jr., Jose Carlos V. Lacson, Bienvenido M. Abante, Jr., Vicente F. Belmonte, Jr., Nicanor M. Briones, Carmen L. Cari, Jaime C. Lopez, Ernesto C. Pablo, Edwin C. Uy, Jose V. Yap, Exequiel B. Javier, Glenn A. Chong, Roberto V. Puno, Danilo Ramon S. Fernandez, Giorgidi B. Aggabao, Juan Edgardo M. Angara, Maria Zenaida B. Angping, Al Francis D. Bichara, Elias C. Bulut, Jr., Solomon R. Chungalao, Antonio H. Cerilles, Faustino G. Dy III, Robert Raymund M. Estrella, Erico Basilio A. Fabian, Jeffrey P. Ferrer, Vincent J. Garcia, Florencio C. Garay, Rizalina L. Seachon-Lanete, Mark Llandro L. Mendoza, Arthur “Dodo” Y. Pingoy, Jr. M.D., Salvacion S. Ponce-Enrile, Edgar S. San Luis, Joseph A. Santiago, Victor J. Yu, Adelina Rodriguez-Zaldarriaga, Alfredo D. Marañon III, Antonio A. del Rosario, Rodolfo T. Albano III, Victor E. Agbayani, Elpidio F. Barzaga, Jr., Eufrocino M. Codilla, Sr., Vincent P. Crisologo, Arthur D. Defensor, Angelito C. Gatlabayan, Eleandro Jesus F. Madrona, Ferdinand R. Marcos, Jr., Florencio T. Miraflores, Joaquin Carlos Rahman A. Nava, Roman T. Romulo, Ronald V. Singson, Rozzano Rufino B. Biazon, Arnulfo P. Fuentebella, Raul T. Gonzalez, Jr., Joseph F. Violago, Roque R. Ablan, Jr., Felix R. Alfelor, Jr., Jose S. Aquino II, Del R. de Guzman, Antonio M. Diaz, Wilfrido Mark M. Enverga, Arnulfo F. Go, Florencio “Bem” G. Noel, Emil L. Ong, Jesus Crispin C. Remulla, Marcelino R. Teodoro, Irwin C. Tieng, Niel C. Tupas, Jr., Alfonso V. Umali, Jr., Reynaldo S. Uy, Rodolfo G. Valencia, Cynthia A. Villar, Eduardo C. Zialcita, Jose C. de Venecia, Jr., Antonio T. Kho, Cesar G. Jalosjos, Liwayway Vinzons-Chato, Rodolfo W. Antonino and Eduardo R. Gullas





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


SECTION 1.Title.This Act shall be known as the “Bataan Nuclear Power Plant Commissioning Act of 2008.”

SEC. 2.Declaration of Policy. Section 16, Article II of the 1987 Constitution provides that: ”The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature”.

Section 8, Article II further provides that: “The Philippines, consistent with the national interest, adopts and pursues a policy of freedom from nuclear weapons in its territory.”

In pursuance thereof, it is hereby the declared policy of the State to develop nuclear energy as a distinct and substantial part of the country’s energy mix.

Such a policy is intended as proactive action in addressing the ever worsening global warming and carbon emissions issue and the possible sanctions and tax against the use of carbon-based fuels which are likely to occur in the future.

Such a policy is also pro active in addressing the energy sources necessary in the coming ”clean” hydrogen economy.

Most importantly, such a policy will partially but substantially address, the three thousand megawatt shortfall in the nation’s electric generating capacity projected to happen before the year 2012.

SEC. 3. Mandate & Authority to Rehabilitate, Commission and Operate. – The provisions of Section 47 (j) of Republic Act No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001”, to the contrary, notwithstanding, the National Power Corporation (NAPOCOR) or a subsequent government corporation is hereby mandated and authorized to undertake the immediate rehabilitation, commissioning and commercial operation of the Bataan Nuclear Power Plant (BNPP), in consonance with its mandate under R. A. 6395, Series of 1971. This vested mandate and authority shall be under the direct supervision and control by the Department of Energy. The NAPOCOR may spin-off portions of its organization which are presently overseeing the preservation and maintenance of BNPP, its engineering and technical, and administrative staff to form a government-owned corporation to further hasten and streamline the rehabilitation and commissioning process of the BNPP. The Philippine Nuclear Research Institute (PNRI) or the subsequent nuclear regulatory authority mandated to oversee the licensing and regulation of nuclear facilities shall continue to regulate the rehabilitation, commissioning and operation of the BNPP as mandated by law.

           SEC. 4. Warranty over Mechanical & Civil Portions including the Nuclear Steam Supply System (NSSS) and Balance of Plant Equipment (BOP). – The NAPOCOR or a subsequent government corporation shall, after thorough assessment, evaluation, maintenance, repair, replacements, rehabilitation and validation of the already implemented Three Mile Island upgrades pursuant to the recommendations of the Puno Commission, necessary for the Mechanical & Civil Portions including the Nuclear Steam Supply System (NSSS) and Balance of Plant Equipment (BOP), warrant that the BNPP conforms to the Philippine nuclear industry state of the art as of July 1, 1986: Provided, That, subsequent operating international guideline revisions viz the series or model of nuclear plants to which the BNPP belongs, where applicable, are likewise complied with.

SEC. 5. Warranty over Instrumentation and Control (I & C) Equipment. – The existing main instrument and control equipment may be validated, retained or scrapped, selectively or in whole as needed.  The NAPOCOR or a subsequent government corporation shall also ensure that the Instrumentation and Control (I & C) portions, i.e. electronic controls, sensors, and data communication systems (servo drives and actuators – non-mechanical) are modernized according to the state of the art in identical or nearly identical nuclear power plants operating in the world in particular Brazil, Slovenia and South Korea NPPs. Digital systems may be employed similar to the upgrades being implemented by old nuclear plants implementing improvements of their I & C systems, but only applicable to the series or model of nuclear plants to which the BNPP belongs, where applicable. Although modern, such systems must also be mature, stable, and well accepted (in prior mainstream use) by the western nuclear power industry.

Such upgrades in the I & C equipment should already include all revisions and guidelines pertinent to the Three Mile Island and Chernobyl accidents, but only applicable to the series or model of nuclear plants to which the BNPP belongs, where applicable.

Nothing in this section shall be interpreted as giving the NAPOCOR or a subsequent government corporation the blanket authority to implement, apply or institute physical changes or other operating guidelines not otherwise applicable to the series or model of nuclear plants to which the BNPP belongs.

SEC. 6. Hiring of Technical Personnel. – Upon the enactment of this Act, the NAPOCOR or a subsequent government corporation shall forthwith recruit, hire, and/or engage the services of the necessary skilled manpower for the management and operation of all the technical aspects of the plant. For this purpose, the technical personnel involved in and possessing institutional memory on the construction and maintenance of the BNPP shall be given priority and be deemed acceptable, subject to requalification.

For the first ten years of operation, the Philippine nationality requirements for the filling up of the technical, supervisory and managerial positions required by the plant is hereby waived.

SEC. 7. Development of Local Skilled Manpower. The NAPOCOR or a subsequent government corporation shall implement a program for training, cultivating and developing a pool of local skilled manpower necessary for the management and operation of all the technical aspects of the plant and for a future nuclear power industry.

Towards this end, the University of the Philippines is hereby mandated to offer courses in nuclear engineering and nuclear plant operation.

A separate budget for hands-on training, simulator training and/or further academic training abroad of operating personnel shall be allocated, chargeable against government revenues generated from all power generating and power distribution entities, until such time that commercial operation has been attained.

SEC. 8. Compensation/Salary Rates. – The state is hereby authorized and empowered to pay competitive rates which is defined as the average between the United States, Canadian (denominated in U.S. Dollar) and French (denominated in Euro) rates for all personnel especially those working within battery limits: Provided, That the manpower complement shall not exceed the average number of personnel utilized per unit of plant in the said countries. As used in this Act, battery limits shall refer to the controlled area as defined in nuclear facilities.

SEC. 9. Tenure of Employment. – For purposes of this Act, the provisions of the Civil Service Law governing the tenure of employment shall not apply to personnel recruited under the immediately preceding Section 8 of this Act. Negligence, demonstrated incompetence and irresponsibility shall be grounds for immediate termination.

SEC. 10. Allocations for Disposal of Spent Fuel and Decommissioning of the BNPP. – In the operation of the plant, the NAPOCOR or a subsequent government corporation shall allocate as a sinking fund U.S. ¢ 0.1 – ¢ 0.2/kwh to cover the expenses for the future decommissioning of the plant at the end of its operational life. NAPOCOR or a subsequent government corporation shall also allocate US$40.1/Kwh for costs of radioactive waste disposal and spent fuel disposal program of BNPP.

Upon collection of fees for its product, the BNPP shall turn over the said funds to the National Treasury on a monthly basis. The said fund shall then be converted at the first day of every month into hard currency, which is defined as a fifty percent (50%) mix of U.S. Dollar and Euro.

These funds shall be under the custody of the Treasurer of the Philippines.

Disbursement and fund management shall be governed by the implementing guidelines to be agreed upon and promulgated by DOE, NAPOCOR or a subsequent government corporation, PNRI and the Department of Finance. These institutions will exert their utmost effort to ensure that the value of the fund is not eroded. These institutions shall also ensure that the funds earn at least the market rates of interest in dollar or euro currencies, if not better.

The disposal of radioactive wastes may be through a local scheme to be worked out by Congress or, through an IAEA recognized re-processor.  The account for the funds shall be called: The BNPP Spent Fuel Disposal Fund (BSFDF) which shall only be utilized for the final disposition of spent fuel.

The account for the funds set aside for the purpose of decommissioning the plant and making safe the plant site at the end of its operating or physical lifetime of forty years shall be called: The BNPP End of Life Decommissioning Fund (BELDF).

SEC. 11. Low-Level and Intermediate Level Nuclear Waste Management and/or Disposal. – Management and/or disposal of low-level and intermediate level waste similar to those generated in medical and industrial applications shall be handled in accordance with the regulatory requirements of the PNRI or subsequent regulatory agency.

SEC. 12.  Use of Recovered Fissionable Materials from Spent Fuel. – Recovered fissionable materials from spent fuel may be reused by the BNPP: Provided, That in such a case, the BNPP Spent Fuel Disposal Fund shall not be utilized.   

SEC. 13. Definition & Extension of Operational Lifetime. – The operational lifetime of the BNPP shall be defined as forty (40) years from the date of its commercial operation.

Extension of the defined operational lifetime of the BNPP may be granted by the PNRI or the subsequent government authority tasked to perform the licensing and regulations of nuclear power plants in the country at the time of application for the extension of its operational lifetime: Provided, That the duration of the extended operational lifetime shall not exceed twenty (20) years per extension.

Such an extension of BNPP’s commercial life shall be determined by the technical realities of the day, and the prior experience of license extensions for similar plants operated in Canada, the U.S. and France.

SEC. 14.  Emergency Preparedness and Response Plan. – The NAPOCOR or a subsequent government corporation shall establish an emergency preparedness and response plan in accordance with the regulatory requirements of PNRI or the subsequent nuclear regulatory agency.

SEC. 15.  Cost of Rehabilitation. The NAPOCOR shall endeavor to complete this mandate at a cost that is substantially below one half of the cost of a brand new coal fired power plant of equal capacity. Under no circumstances shall the cost exceed the price of a brand new coal fired power plant of equivalent power generating capacity.

SEC. 16.  Mode of Commissioning. The President through the DOE is hereby given the authority to determine and decide the mode by which the mandate of this Act is to be attained, as long as the conditions provided for in the preceding sections are met. Such mode may be by administration, and/or by contract to rehabilitate but not to operate.

SEC. 17.  Compliance with Environmental Regulations.– As far as the environment is concerned, all aspects nuclear shall be subject to the PNRI or subsequent nuclear regulatory authority rulings and standards. With respect to all other non-radiological emissions or hazards, the DENR shall exercise its authority as mandated by law.

SEC. 18. Benefits to Host Communities. – The amount of PhP0.01/kWH shall be given as direct benefit to the province, city, or municipality especially the community and people affected, and equitable preferential benefit to the region that hosts the nuclear power plant: Provided, That the other provinces, cities, municipalities or regions shall not be deprived of their energy requirements.

SEC. 19. Implementing Rules and Regulations. – The Secretary of Energy, in coordination with the President of the National Power Corporation and the Director of the Philippine Nuclear Research Institute, shall promulgate the necessary rules and regulations for the effective implementation of this Act.

SEC. 20.   Oversight Committee. – An Oversight Committee is hereby created which shall be composed of Chairmen of the Committees on Energy of the Senate and the House of Representatives and four (4) additional members from each House to be designated by the Senate President and the Speaker of the House of Representatives, respectively. The Oversight Committee shall monitor and ensure the proper implementation of this Act.

SEC. 21. Appropriations.– The amount necessary for the initial implementation of this Act shall be charged against the appropriations of the Department of Energy under the current General Appropriations Act, or appropriated and covered by NAPOCOR or subsequent government corporation in its annual budget. Thereafter, such sum as may be necessary for its full implementation shall be included in the annual General Appropriations Act as a distinct and separate item.

SEC. 22. Alternative Sources of Funding. – The State may raise equity through a surcharge of PhP0.10/kWH of the total electric power generated in the country: Provided, That such collection of surcharge shall not exceed five (5) years from the date of its initial imposition. The funds collected shall be reimbursed to the electric consumers after such time that the BNPP shall commence commercial operations. The time frame for such reimbursement shall not exceed three (3) years. The State is also authorized to enter into international or domestic loan agreements to fund the implementation of this Act: Provided, That the total funds raised from the surcharge and the loan combined shall not exceed US$1 billion.

SEC. 23 Separability Clause. – If for any reason, any section or provision of this Act is declared to be unconstitutional, the other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect.

SEC. 24 Repealing Clause. – All laws, decrees, executive orders, rules and regulations, and other issuances, or any part thereof, which are inconsistent with this Act, are hereby repealed or modified accordingly.

SEC. 25. Effectivity Clause. – This Act shall take effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation.



The date posted here is due to our website rebuild, it does not reflect the original date this article was posted. This article was originally posted in Yonip on Feb 02nd 2009


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