Powers and Responsibilities of the Department of Energy.
SEC. 5. Powers and Responsibilities of the Department of Energy. - In addition to its existing powers and functions, the DOE shall have the overall responsibility of supervising and monitoring the PDNGI and developing the strategies to implement the State policies declared under this Act. Toward this end, the DOE shall exercise the following powers and functions:
(a) Prepare the PDNG Dev Plan, based on modeling, considering forecasted demand, supply, and uses of natural gas in the country, taking into account the plans submitted by PDNGI Permit Holders and Participants, after open discussions and consultations with relevant government agencies and public and private stakeholders, within two (2) years from the effectivity of this Act. The PDNG Dev Plan shall be reviewed and updated every three (3) years after its adoption;
(b) Establish standards on gas quality, facility, and a code of practice for the PDNGI, in coordination with relevant government agencies. For this purpose, a Technical Committee (TC) shall be created to develop and promulgate the applicable PNS for the PDNGI. The TC shall be co-chaired by the DOE and the Department of Trade and Industry-Bureau of Philippine Standards (DTI-BPS).
The TC shall be composed of representatives from the following sectors:
(1) Academe;
(2) Trade/Industry;
(3) Consumer;
(4) Professional Associations;
(5) Research Institutions;
(6) Government Agencies;
(7) Testing Institutions; and
(8) Other relevant sectors.
(c) Enforce PDNGI compliance with the standards, in coordination with relevant government agencies, through the issuance of technical regulations implementing the standards, review of reports, and conduct of onsite inspections.
An Inter-Agency Health, Safety, Security, and Environment Inspection and Monitoring Team (IA-HSSE IMT) shall be created to monitor and enforce compliance with established standards. It shall be co-chaired by the DOE and the Department of Environment and Natural Resources (DENR), with members composed of representatives from the following government agencies:
(1) Maritime Industry Authority (MARINA);
(2) Philippine Coast Guard (PCG);
(3) Department of Labor and Employment (DOLE);
(4) Bureau of Fire Protection (BFP);
(5) Department of Health (DOH); and
(6) Other relevant government agencies.
(d) Approve or issue:
(1) Permits for the construction, operation and maintenance, expansion, modification, rehabilitation, decommissioning, and abandonment of PDNGI Facilities;
(2) Accreditation of Participants;
(3) Acknowledgment of natural gas importation and exportation notification; and
(4) Other endorsements or issuances in furtherance of the development of the PDNGI.
The processing and grant of all permits and other endorsements or issuances pursuant to this Act shall be governed by Republic Act No. 11234, otherwise known as the "Energy Virtual One-Stop Shop Act". In reviewing applications for permits, the DOE shall ensure that the application is consistent with the declaration of policies in this Act, and that the proposed project is technically and financially viable by ensuring, among others, sufficient supply of imported LNG or indigenous natural gas, and clear source of funding for the project. The EVOSS Steering Committee shall streamline the permitting process for the PDNGI and continue its mandate under Republic Act No. 11234;
(e) Review, suspend, or revoke permits issued after a finding of non-compliance with the provisions of this Act, its implementing rules and regulations (IRR), and related issuances;
(f) Issue a written approval for the assignment or transfer of permits after determining that the assignee or transferee has met all the legal, technical, and financial qualifications, has committed itself to assume all existing obligations of the Permit Holder, and that such assignment or transfer is in accordance with existing laws, rules and regulations: Provided, That this also applies to sales of shares that would result in a change in control of the Permit Holder or its ultimate parent.
(g) Issue the PDNG Transmission Code, PDNG Distribution Code, the PLSR Terminal Code, and the TPA Code within two (2) years from the effectivity of the IRR of this Act, in consultation with other concerned government agencies and the PDNGI stakeholders;
(h) Endorse to the Philippine Competition Commission (PCC) for investigation any reported or observed anti-competitive behavior in the PDNGI;
(i) Require Permit Holders and Participants to submit regular and special reports, and to provide real-time monitoring access to the operation and maintenance activities of PDNGI Facilities;
(j) Publish the list of Permit Holders and Participants along with the status of their projects on the DOE website;
(k) Temporarily take over or direct the operation of any person or entity engaged in the PDNGI in times of national emergency, when the public interest so requires, as may be directed by the President upon the recommendation of the National Economic and Development Authority (NEDA);
(l) Create offices and appoint personnel as may be necessary to efficiently and effectively implement this Act, subject to existing laws, rules, and regulations;
(m) Develop a comprehensive national strategy, with input from the National Renewable Energy Board (NREB), for integrating renewable gases into the energy mix, and outlining the roadmap for their adoption;
(n) Regulate, as applicable, the quality of service and rates of TPA conventional transportation systems: Provided, That the rate-setting methodologies shall be based on the policy of full recovery of prudent and reasonable economic cost with a reasonable rate of return or such other principles that promote efficiency and other internationally-accepted rate-setting methodology;
(o) Ensure compliance with the publication and unbundling of TPA conventional transportation system fees, whether for a PDNG transmission or distribution system;
(p) Develop and establish such other plans and policies as may be consistent with and in furtherance of the State policies declared under this Act;
(q) Exercise such other powers and functions as may be necessary or incidental to attain the objectives of this Act; and
(r) Identify and assess the risk of stranded assets associated with natural gas infrastructure development, taking into account factors such as declining demand due to the energy transition, the emergence of alternative energy carriers, stricter climate policies, and technological advancements in renewable energy. The DOE shall develop a transparent methodology for evaluating stranded asset risk applicable to both existing and proposed projects, maintain a publicly accessible database that tracks these projects and their risk assessments on any identified stranded assets, and regularly update this information to serve as foundation for informed policy decisions and regulatory actions.
To mitigate the risks of stranded assets, the DOE is empowered to establish and enforce regulations that promote responsible investment in natural gas infrastructure, and encourage a timely transition to renewable energy sources. These regulations may include facilitating the early retirement of high-risk assets through financial mechanisms.
The DOE shall also coordinate with relevant government agencies to align natural gas development, national climate targets, and ensure a smooth transition to a sustainable energy system.
Powers and Responsibilities of the Energy Regulatory Commission.
SEC. 6. Powers and Responsibilities of the Energy Regulatory Commission. - The powers of the ERC shall be in accordance with the provisions of Republic Act No. 9136 on the organization, operation, regulation of the power industry, and such other powers as may be given to it under applicable laws.
It shall create offices and appoint personnel necessary to efficiently and effectively perform its functions in regulating power generated from natural gas, subject to existing laws, rules, and regulations.
Powers and Responsibilities of the Department of Environment and Natural Resources.
SEC. 7. Powers and Responsibilities of the Department of Environment and Natural Resources. - In addition to its functions under Executive Order No. 192, otherwise known as the "Reorganization Act of the Department of Environment and Natural Resources", the DENR, together with the DOE and the PCG, shall determine and monitor compliance with the environmental standards for the siting, construction, operation and maintenance, expansion, rehabilitation, decommissioning and abandonment of PDNGI Facilities, pursuant to existing environmental laws, such as Republic Act No. 8749, otherwise known as the "Philippine Clean Air Act of 1999", as amended, Republic Act No. 7586, otherwise known as the "National Integrated Protected Areas System Act of 1992", as amended, Republic Act No. 11038, otherwise known as the "Expanded National Integrated Protected Areas System Act of 2018", Republic Act No. 6657, otherwise known as the "Comprehensive Agrarian Reform Law of 1988", as amended, and other existing environmental laws, rules, and regulations: Provided, That, within six (6) months from the effectivity of this Act, the DENR shall establish national standards for methane emissions and other pollutants from natural gas industries not otherwise regulated by existing laws.
Powers and Responsibilities of the Philippine Coast Guard.
SEC. 8. Powers and Responsibilities of the Philippine Coast Guard. - In addition to its functions under Republic Act No. 9993, otherwise known as the "Philippine Coast Guard Law of 2009", the PCG, together with the DENR, shall determine and monitor compliance with the marine environmental protection standards for the offshore and waterfront siting, construction, operation and maintenance, expansion, modification, rehabilitation, decommissioning, and abandonment of PDNGI Facilities.
SEC. 9. Powers and Responsibilities of the Department of Transportation (DOTr) through the Maritime Industry Authority. - In addition to its functions under Presidential Decree No. 474, otherwise known as the "Maritime Industry Decree of 1974", the MARINA shall have general jurisdiction over the development, promotion, and regulation of all enterprises engaged in the business of designing, constructing, manufacturing, acquiring, operating, supplying, repairing, and maintaining vessels, or parts thereof, including LNG carriers. The MARINA shall also provide for the effective supervision, regulation, and rationalization of the organizational management, ownership, and operations of all water transport utilities and other maritime enterprises.
SEC. 10. Powers and Responsibilities of the DOTr and its Attached Agencies. In addition to its functions under Executive Order No. 125, series of 1987, otherwise known as the "Reorganization Act of the Ministry of Transportation and Communications", as amended, and other applicable laws, the DOTr or its attached agencies, such as the Land Transportation Office, Land Transportation Franchising and Regulatory Board, and MARINA, in coordination with the DOE, DENR, DOH, DTI-BPS, and other relevant government agencies, shall issue the appropriate guidelines and regulations, and the applicable permits, licenses, certificates, or authorizations for virtual pipelines, motor vehicles, and marine vessels transporting, storing, or processing natural gas in its original state or liquefied form, as well as marine facilities used to import, receive, load, unload, transport, process, and store natural gas in its original or liquefied form, including those utilized as offshore LNG terminals, The DOTr shall monitor and ensure compliance therewith.
Powers and Responsibilities of the Department of Trade and Industry-Bureau of Philippine Standards.
SEC. 11. Powers and Responsibilities of the Department of Trade and Industry-Bureau of Philippine Standards. - In addition to its functions under Republic Act No. 4109, tiled, "An Act to Convert the Division of Standards under the Bureau of Commerce into a Bureau of Standards, to Provide for the Standardization and/or Inspection of Products and Imports of the Philippines and for Other Purposes", the DTI-BPS, together with the DOE, shall determine, develop, formulate, promulgate, and revise the PNS for natural gas and PDNGI Facilities.
Powers and Responsibilities of the Department of Science and Technology (DOST).
SEC. 12. Powers and Responsibilities of the Department of Science and Technology (DOST). - In addition to its functions under Executive Order No. 128, otherwise known as the "Reorganization Act of the National Science and Technology Authority", the DOST shall undertake scientific and technological research and development for the improvement of new technologies in the PDNGI.
Powers and Responsibilities of the Department of Health.
SEC. 13. Powers and Responsibilities of the Department of Health. - In addition to its functions under Executive Order No. 317, series of 1941, titled "Organizing the Department of Health and Public Welfare", as amended, and Republic Act No. 11223, otherwise known as the "Universal Health Care Act", the DOH, together with the DOE, ERC, or DOTr, shall:
(a) Ensure and monitor compliance by Permit Holders and Participants with the health standards of PDNGI Facilities and PDNGI activities;
(b) Recommend standards, rules, and regulations in the conduct of health risk assessment studies in cases of natural gas accidents;
(c) Develop guidelines, policies, and health standards on the treatment and management of patients affected by natural gas accidents; and
(d) Require health data and information from PDNGI Facilities, Permit Holders, and Participants.
Referral to the Philippine Competition Commission.
SEC. 14. Referral to the Philippine Competition Commission. - Consistent with its functions under Republic Act No. 10667, the PCC shall:
(a) Promote free and fair competition in all commercial economic activities in the PDNGI;
(b) Prevent economic concentration in the PDNGI that may have the tendency to control the production, distribution, trade, or industry in a manner that would unduly stifle competition in and lessen, manipulate, or constrict the discipline of free markets; and
(c) Penalize all forms of anti-competitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions in the PDNGI, to protect consumer welfare and advance domestic and international trade and economic development.
All matters involving or suspected by ERC and/or DOE to involve anti-competitive agreements or abuse of market shall be referred to the PCC for investigation and adjudication. Where the act/s referred to the PCC are highly technical in nature, the ERC and/or DOE shall assist the PCC in its inquiry and analysis of the facts.
Powers and Responsibilities of the National Commission on Indigenous Peoples (NCIP).
SEC. 15. Powers and Responsibilities of the National Commission on Indigenous Peoples (NCIP). - In addition to its functions under Republic Act No. 8371, otherwise known as "The Indigenous Peoples' Rights Act of 1997", the NCIP, upon the DOE's endorsement in accordance with the PEP or its certification that the PDNGI project is an energy project of national significance, shall process the application for the certification under Section 59, Chapter VIII of Republic Act No. 8371, in accordance with the processes provided in Republic Act No. 11234.
Powers and Responsibilities of the Philippine Energy Research and Policy Institute (PERPI).
SEC. 16. Powers and Responsibilities of the Philippine Energy Research and Policy Institute (PERPI). - Pursuant to Republic Act No. 11572, otherwise known as the "Philippine Energy Research and Policy Institute Act", the PERPI shall conduct research and development on renewable gas technologies, including production, storage, and distribution, with support from the DOST and Philippine National Oil Company (PNOC).
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
