Geothermal host LGUs opposes Enrile’s bill
KANANGA, Leyte- The Alliance of Geothermal Energy Producing LGUs (AGEPL) approved a resolution opposing Senate Bill No. 3282, or the Electricity Reduction Act of 2009. This was learned from Mayor Elmer C. Codilla and Vice Mayor Macario V. Lumangtad Jr. who attended the AGEPL summit in Dumaguete City recently.
This was after a day-long summit in Dumaguete City of the alliance, composed of the geothermal-host local government units in the country, that took up the bill and other issues like the Renewable Energy Act of 2008, the effect of scrapping the royalty tax through a bill filed by Senator Juan Ponce Enrile; and the expansion of the membership of the alliance.
The alliance also opposes any other future legislations concerning the reduction or lowering of the royalty share of the LGUs in the development and utilization of the Natural Wealth.
The AGEPL said that while Senate Bill No. 3282, introduced by Senators Juan Ponce Enrile and Senator Gregorio Honasan II, was laudable, it is unfair, unreasonable and inequitable to host-LGUs of natural wealth or indigenous energy sources such as but not limited to biomass, solar, wind, geothermal, natural gas, ocean energy and hydropower, as it practically nullifies the benefit afforded them by law and the Constitution.
It cited a part of Sec. 4 of the bill stating that the government share from the net proceeds from the sale of the indigenous energy resources is reduced from 60 percent to three percent over the remaining life of the respective service contracts.
Furthermore, the three percent government share shall be maintained the current 60/40 sharing scheme between the national government and the local government units concerned, another concern that Mayor Rodolfo Gonzalez, Jr. of Valencia , Negros Oriental and Mayor Elmer Codilla of Kananga , Leyte , noted.
Mayor Elmer C. Codilla has been vocal on its opposition of the said proposed bill, during the recent flag ceremony, he told the LGU employees that the Municipality of Kananga has benefited from royalty tax, which is due to LGU as provided in the Constitution, for the utilization of natural wealth. The mayor said that it is just for these geothermal host LGUs including Kananga, Leyte to receive their share since the electricity has benefited other towns in different regions in the country. “Tayo (ang natural resources natin) ang ginahasa, at nakinabang naman ang iba” Mayor Codilla said.
Mayor Codilla said that they (the municipal officials) will definitely opposed the said Bill since it is detrimental to the geothermal –host towns and cities.
The two mayors and other representatives from the different geothermal host-LGUs had earlier expressed fears over the effects of the bill on their budgets and development projects.
The alliance cited Sec. 7, Art. X of the Constitution that provides local government units to be “entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits.”
The AGEPL also expressed concern that the utilization and development of natural wealth or renewable energy resources in a locality can give rise to some environmental concerns to the inhabitants of the place, and therefore, the giving of the royalties is to compensate them the disturbance caused by such.
“While the purpose of the bill is laudable, it is unfair, unreasonable and inequitable to host LGUs’ of natural wealth or indigenous energy resources…as it practically nullified the benefit afforded them by the law and the constitution,” the resolution stated.
The LGUs of Ormoc and Kananga in Leyte, Sorsogon City, Kidapawan City in North Cotabata, Tiwi in Albay, and Valencia in Negros Oriental comprise the AGEPL. It was formally organized last March 2009 in their effort to lobby the release of the royalty tax from Energy Development Corp (EDC), since the royalty has been release in the middle of 2009, they are now again facing another challenge, which the possible scrapping of royalty tax.
Gonzalez, AGEPL president, said they will seek audience with Department of Energy Secretary Angelo Reyes and Senator Juan Ponce Enrile the soonest time possible. (GERARD REYES)
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