COMMITTEE ON INDIGENOUS PEOPLES CONCERNS

CORDILLERA ADMINISTRATIVE REGION

CIPC-CAR Resolution No. ________

Series of 2017-08-17

PROPOSED AMENDMENT TO REPUBLIC ACT NO. 9136 OR

THE ELECTRIC POWER INDUSTRY REFORM ACT OF 2001

WHEREAS, Section 22 of Article II of the 1987 Philippine Constitution provides that The State
Recognizes and promotes the rights of indigenous cultural communities within the framework of
national unity and development;

WHEREAS, Section 5 of Article XII of the 1987 Philippine Constitution further provides that The
State, subject to the provisions of the Constitution and national development policies and programs,
shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their
economic, social, and cultural well-being;

WHEREAS, to give effect to the Constitutional provisions, Republic Act No. 8371 or the
Indigenous Peoples Rights Act (IPRA) of 1997 was enacted;

WHEREAS, among the rights of Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs)

to ancestral domains is the Right to Develop Lands and Natural Resources, particularly the right to
benefit and share the profits from allocation and utilization of the natural resources found therein, as
enunciated in IPRA, to wit:

SEC. 7. Rights to Ancestral Domains. The rights of ownership and possession of

ICCs/IPs to their ancestral domains shall be recognized and protected. Such rights shall
include:
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b) Right to Develop Lands and Natural Resources. Subject to Section 56 hereof,
right to develop, control and use lands and territories traditionally occupied,
owned, or used; to manage and conserve natural resources within the territories
and uphold the responsibilities for future generations; to benefit and share the
profits from allocation and utilization of the natural resources found therein;
the right to negotiate the terms and conditions for the exploration of natural
resources in the areas for the purpose of ensuring ecological, environmental
protection and the conservation measures, pursuant to national and customary
laws; the right to an informed and intelligent participation in the formulation
and implementation of any project, government or private, that will affect or
impact upon the ancestral domains and to receive just and fair compensation for
any damages which they may sustain as a result of the project; and the right to
 effective measures by the government to prevent any interference with,
alienation and encroachment upon these rights;
WHEREAS, scope of the ancestral domain of the ICCs/IPs as stated in section 1 (a) in the
definition of the IRR of Republic Act 8371 extend beyond the bowels of the earth, to wit:

SEC 1. Definition of Terms. For purposes of these Rules and Regulations the following
terms shall mean:

a)Ancestral Domains. - Refers to all areas generally belonging to ICCs/IPs, subject

to property rights within ancestral domains already existing and/or vested upon
the effectivity of the Act, comprising lands, inland waters, coastal areas, and
natural resources therein, held under a claim of ownership, occupied or
possessed by ICCs/IPs by themselves or through their ancestors, communally or
individually since time immemorial, continuously to the present, except when
interrupted by war, force majeure or displacement by force, deceit, stealth, or as
a consequence of government projects or any voluntary dealings entered into by
the government and private individuals/ corporations, and which are necessary
to ensure their economic, social and cultural welfare. It shall include ancestral
lands, forests, pasture, residential, agricultural, and other lands individually
owned whether alienable and disposable or otherwise; hunting grounds: burial
grounds; worship areas; bodies of water; mineral and other natural resources;
and lands which may no longer be exclusively occupied by ICCs/IPs, but from
which they traditionally had access to, for their subsistence and traditional
activities, particularly the home ranges of ICCs/IPs who are still nomadic and/or
shifting cultivators.

WHEREAS, the mechanism to protect these rights of the ICCs/IPs to their ancestral domain is the
Free and Prior Informed Consent Process which, if consent to the proposed project is given, leads to a
negotiation on the term and conditions of the project, as well as the benefits to the ICCs/IPs, and which
culminates with the signing of the Memorandum of Agreement;

WHEREAS, Pursuant to the revised rules and regulations of the Mining Act of 1995,
Administrative Order No. 2010-21, section 16 states that In the event that prior informed consent is
secured in accordance with the preceding paragraph, the concerned parties shall agree on the royalty
payment for the concerned ICC which may not be less than one percent (1%) of the gross output.
Expenses for community development may be credited to or charged against said royalty.

WHEREAS, Republic Act No. 9136 or the Electric Power Industry Reform Act was enacted in
2001, providing for the benefits to communities hosting energy generating facilities and/or energy
resource developers, to wit:
SEC. 66. Benefits to Host Communities. The obligations of generation companies and
energy resource developers to communities hosting energy resource developers to
 communities hosting energy generating facilities and/or energy resource developers as
defined under Chapter II, Section 289 to 294 of the Local Government Code and Section
5(i) of Republic Act No. 7638 and their implementing rules and regulation and applicable
order and circulars consistent with this Act shall continue: Provided, that the obligations
mandated under Chapter II, Section 291 of Republic Act No. 7160, shall apply to
privately-owned corporation or entities utilizing the national wealth of the locality.

To ensure the effective implementation of the reduction in cost of electricity in the

communities where the source of energy is located, the mechanics and procedures
prescribed in the Department of Interior and Local Government (DILG)-DOE Circulars No.
95-01 and 98-01 dated October 30, 1998, respectively and other issuances related
thereto shall be pursued.

Towards this end, the fund generated from the eighty percent (80%) of the national
wealth tax shall, in no case, be used by any local government unit for any purpose other
than those for which it was intended.

In case of any violation or noncompliance by any local government official of any

provision thereof, the DILG shall, upon prior notice and hearing, order the project
operator, through DOE, to withhold remittance of the royalty payment to the host
community concerned pending completion of the investigation. Unremitted funds shall
be deposited in a government bank under a trust fund.

WHEREAS, to the disadvantage of the ICCs/IPs owners of the ancestral domain, generation
companies and energy resource developers seeking the consent of ICCs/IPs through the FPIC process
insist to rely on the limits of the EPIRA when it comes to the benefits to host communities;

WHEREAS, in line with the 1987 Constitution and the IPRA , the ICCs/IPs share in the profits of
generation companies and energy resource developers that allocate and utilize the natural resources
found in their ancestral domain must be insured;

NOW THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to endorse to CAR Congressmen

for the amendment of section 66 of the EPIRA to be included and expressed for the recognition of
ICCs/IPsright, and to read as follows:

SEC. 66. Benefits to Host Communities and ICCS/IPs Owners of the Ancestral Domain

In ancestral domains whose ICCs/IPs have given their consent to the energy generating
facilities and/or energy resource development, the generation companies and energy
resource developers are required to provide to the ICCs/IPs minimum of at least one
percent of their Gross sale or output as royalty and other financial benefits and benefits
 in kind, as may be negotiated during the FPIC process. The disposition of such proceeds
shall be subject to R.A. No. 8371 and applicable guidelines

RESOLVED FINALY, to furnish a copy of this resolution to all concerned stakeholders for their
perusal.

APPROVED, this___ day of ___________, Baguio City, Philippines