Article 81p. 81

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

SECTION 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:

(a) To finance energy conservation projects of industrial

and commercial establishments;

(b) To monitor implemented sub-projects and document

the actual energy savings generated; and

(c)

To

disseminate

information

on

implemented

sub-projects

through

case

studies

and

seminars/workshops so as to encourage replication by

other industrial and commercial establishments.

SECTION 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

the

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.

SECTION 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 the 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.

SECTION

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. 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 V Appropriations

SECTION 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 VI Miscellaneous Provisions

SECTION 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

© 2018 Compiled by RGL

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