RA 7638 (Department of Energy Act of 1992) CHAPTER IV

Abolition of Agencies.

Section 15

Sec. 15. Abolition of Agencies. – The Office of Energy Affairs and the Energy Coordinating Council are hereby abolished subject to Section 17 of this Act.

Transfer of Powers and Functions.

Section 16

Sec. 16. Transfer of Powers and Functions. – The powers and functions of the Energy Coordinating Council and the Office of Energy Affairs are hereby transferred to the Department. The foregoing transfer of powers and functions shall include all applicable funds and appropriations, records, equipment, property, and personnel as may be necessary. The same shall apply to agencies and government units which have not been abolished but whose functions have been transferred to the Department. As the successor-in-office of the Office of Energy Affairs, the Department shall administer the activities of the Technology Transfer for Energy Management (TTEM) project. For this purpose, the Department shall continue the utilization of all funds, monies, interests, reflows, and properties outstanding and accruing from the TTEM project upon its termination for the following purposes: To finance energy conservation projects of industrial and commercial establishments; To monitor implemented sub-projects and document the actual energy savings generated; and To disseminate information on implemented sub-projects through case studies and seminars/workshops so as to encourage replication by other industrial and commercial establishments.

Transfer of Rights, Assets, and Liabilities.

Section 17

Sec. 17. Transfer of Rights, Assets, and Liabilities. – The Department shall, by virtue of this Act, be subrogated to all the rights and assume all the liabilities of the Office of Energy Affairs, the Energy Coordinating Council, and all other agencies, or government units whose functions and powers have been transferred to the Department, and all their funds, records, property, assets, equipment, and such personnel as necessary, including unexpended appropriations and/or allocations. All contracts and liabilities of said offices, agencies, and government units are hereby transferred to and assumed by the Department and shall be acted upon in accordance with the Auditing Code and other pertinent laws, rules and regulations: Provided, That the officers and employees of said offices, agencies, and government units shall continue in a holdover capacity until such time as the new officers and employees of the Department shall have been duly appointed pursuant to the provisions of this Act.

Rationalization or Transfer of Functions of Attached or Related Agencies.

Section 18

Sec. 18. Rationalization or Transfer of Functions of Attached or Related Agencies. – The non-price regulatory jurisdiction, powers, and functions of the Energy Regulatory Board as provided for in Section 3 of Executive Order No. 172 are hereby transferred to the Department. The foregoing transfer of powers and functions shall include all applicable funds and appropriations, records, equipment, property, and such personnel as may be necessary: Provided, That only such amount of funds and appropriations of the Board as well as only the personnel thereof which are completely or primarily involved in the exercise by said Board of its non-price regulatory powers and functions shall be affected by such transfer. The power of the NPC to determine, fix, and prescribe the rates being charged to its customers under Section 4 of Republic Act No. 6395, as amended, as well as the power of electric cooperatives to fix rates under Section 16(o), Chapter II of Presidential Decree No. 269, as amended, are hereby transferred to the Energy Regulatory Board. The Board shall exercise its new powers only after due notice and hearing and under the same procedure provided for in Executive Order No. 172.

Structure and Staffing Pattern.

Section 19

SEC. 19. Structure and Staffing Pattern. – The organizational framework and staffing pattern of the Department shall be prescribed and approved by the Secretary within sixty (60) days after the approval of this Act and the authorized positions created therein shall be filled by regular appointments by the President or the Secretary as the case may be: Provided, That, in the filling of positions created, preference shall be given to the personnel of the Office of Energy Affairs, the Energy Coordinating Council, and the Energy Regulatory Board: Provided, however, That such individuals comply with the qualification standards set by the Civil Service Commission for the positions that they shall be appointed to: Provided, finally, That, if such individuals possess the same qualifications seniority shall be given priority.

Section 20

Sec. 20. Separation from Service – Employees separated from the service as a result of this reorganization shall, within six (6) months from their separation from the service, receive the retirement benefits to which they may be entitled under existing laws, rules and regulations. CHAPTER VAppropriations

Appropriations.

Section 21

Sec. 21. Appropriations. – Such sums as may be necessary for the implementation of this Act shall be taken from the current fiscal year appropriations of the Office of Energy Affairs, the Office of Energy Affairs' special fund created under Section 8 of Presidential Decree No. 910, and such amounts as the President of the Philippines may allocate from other resources in accordance with law: Provided, That the total amount shall not exceed Three hundred million pesos (P300,000,000). Thereafter, the amount needed for the operation and maintenance of the Department shall be included in the annual General Appropriations Act. Subject to existing rules and regulations, the funds and monies collected or which otherwise come into the possession of the Department and its bureaus from fees, surcharges, fines, and penalties which the Department and its bureaus may impose and collect under this Act, as well as an amount to be determined at the beginning of every calendar year representing twenty percent (20%) of the outstanding balance of the funds and monies forming part of the special fund under Section 8 of Presidential Decree No. 910, shall be disbursed for expenses necessary for the effective discharge of the powers and functions of the Department under this Act. CHAPTER VIMiscellaneous Provisions

Disclosure and Divestment of Financial Interest.

Section 22

Sec. 22. Disclosure and Divestment of Financial Interest. – Before assumption of office, the Secretary of the Department, the Undersecretaries, and the Assistant Secretaries shall submit to the Civil Service Commission a list of all companies, partnerships, or business enterprises, including nonprofit organizations, in which they or any immediate member of their families within the second degree of consanguinity or affinity have any form of financial interest or employment relationship, including consultancy: Provided, however, That all other forms of employment relationship held by the heads of the offices of the Department shall be immediately terminated upon assumption of office. Within thirty (30) days thereafter, complete divestment of financial interests in any institution, firm, or company which fall under the supervisory or regulatory jurisdiction of the Department shall be made: Provided, however, That, in cases where confirmation of appointments by the Commission on Appointments is required, the divestment mandated herein shall be complied with within thirty (30) days after such confirmation. The divestment provided in the preceding paragraph shall likewise apply to the members of the immediate family within the second degree of consanguinity having interest in any institution or activity which falls under the regulatory jurisdiction or supervision of the Department and the attached agencies.

Relationship with Other Government Departments.

Section 23

Sec. 23. Relationship with Other Government Departments. – The Department and its priority projects shall enjoy preferential attention from the Department of Environment and Natural Resources relative to the exploration, development, exploitation, and extraction of petroleum, coal, and geothermal resources, and in the matter of providing technical support necessary for the establishment of power-generating plants. Upon request of the Department or any of its bureaus, all government agencies with functions relative to the approval of the projects of the Department or its duly authorized and endorsed entities, whether government or private, shall act upon and resolve the matter within ten (10) calendar days. Toward this end, the Secretary, with the approval of the President, may establish an interagency secretariat for the purpose of expediting the approval of said projects.

Visitorial Powers.

Section 24

Sec. 24. Visitorial Powers. – The Secretary of the Department or his representative shall have visitorial and examining authority over nongovernment entities with contracts for the exploration, development, or utilization of the natural resources for energy purposes in order to determine the share of the Government in the revenue or product thereof, and to ascertain all funds collectible and products due the Government, and that all such funds collectible and products due the Government have actually been collected or delivered. During such examination, the non-government entity concerned shall produce all the reports, records, books of accounts, and other papers that may be required. The refusal by any such non-government entity to allow an examination of its books of accounts and pertinent records or its concealment of any material information concerning its financial status shall be a breach of its contract with the Government and shall constitute a legal ground for the cancellation thereof.

Contingency Powers.

Section 25

Sec. 25. Contingency Powers. – In time of critically low-energy supply or imminent danger thereof, the President may, upon the determination and recommendation of the Secretary, issue a declaration of the same. Thereafter, the Secretary hereby authorized to implement the fuel and energy allocation plan provided for in Section 12(b)(5) of this Act, and to formulate and implement other measures for the conservation of energy including, but not limited to, power or fuel rationing, load curtailment, and restrictions on the use of government vehicles and resources.

Repealing Clause.

Section 26

Sec. 26. Repealing Clause. – All laws, presidential decrees, executive orders, and rules and regulations, or parts thereof, inconsistent with the provisions of this Act are hereby repealed or modified accordingly. However, in no case are the provisions of Republic Act No. 6969 repealed, amended, or modified by the provisions of this Act.

Separability Clause.

Section 27

Sec. 27. Separability Clause. – If, for any reason, any section or provision of this Act is held unconstitutional or invalid, the other sections or provisions hereof shall not be affected thereby.

Effectivity Clause.

Section 28

SEC. 28. Effectivity Clause. – This Act shall take effect after its complete publication in at least two (2) national newspapers of general circulation. Approved, December 9, 1992.