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Republic of the Philippines
DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO. _DC 20/$-0!- 000!
(v

ADOPTION OF ENERGY RESILIENCY IN THE PLANNING AND PROGRAMMING
OF THE ENERGY SECTOR TO MITIGATE POTENTIAL IMPACTS OF
DISASTERS

WHEREAS, Republic Act (R.A.) No. 7638 or the Department of Energy Act of 1992
declares the policy of the State to ensure a continuous, adequate, and economic
supply of energy with the end in view of ultimately achieving self-reliance in the
country’s energy requirements.

WHEREAS, Section 37 of the R.A. No. 9136 or the “Electric Power Industry Reform
Act of 2001” (EPIRA), mandates the Department of Energy (DOE), in addition to its
powers and functions under R.A. No. 7638, to supervise the restructuring of the
electricity sector, and undertake the formulation of policies for planning and
implementation of a comprehensive program for the efficient supply and economical
use of energy. This is consistent with the approved national economic plan and with
the policies on environmental protection and conservation and maintenance of
ecological balance, and provides a mechanism for the integration, rationalization,
and coordination of the various energy programs of the Government.

WHEREAS, R.A. No. 8479 or the Downstream Oil Industry Deregulation Act of 1998
declares the policy of the State to liberalize and deregulate the downstream oil
industry in order to ensure a truly competitive market under a regime of fair prices,
adequate and continuous supply of environmentally-clean and high-quality petroleum
products.

WHEREAS, the R.A. No. 10121 or the Philippine Disaster Risk Reduction and
Management Act of 2010, declares among others, as the policy of the State, to
institutionalize the policies, structures, coordination, mechanisms and programs with
continuing budget appropriation on disaster risk reduction from national down to local
levels towards building a disaster-resilient nation and communities.

WHEREAS, the country is vitally dependent on the supply of energy and any
sustained failure in the eneray system would have drastic consequences and impact

on the country’s economy and to people’s daily life.

WHEREAS, the Philippines is one of the most vulnerable countries to natural and
human-induced hazards.

WHEREAS, among the primordial effects of disasters is the disruption in the delivery
of energy to end-users due to damaged facilities, causing serious hazard to public
health and safety, huge economic and financial losses, and interruption of vital public

Energy Center, Rizal Drive cor. 34th Street. Bonifacio Global City, Taguig City, Philippines 1632
, Tel. No. (Trunkline) (632) 479-2900,
Website: http://www.doe.gov.ph: E-mail: info@doe.gov.ph Py

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services. While there are efforts to address disasters at various levels, most of the
resources are redirected to emergency response. In establishing concrete and
sustained mechanism, it is necessary that planning and investment be required to
ensure that the nation’s energy infrastructure can continue to deliver high
performance while anticipating and reducing vulnerabilities to adverse conditions and
disruptive events.

WHEREAS, ensuring resilient energy infrastructure — the ability to restore and
sustain availability and accessibility of energy in the most timely and efficient
manner, in the aftermath of natural and man-made disasters — is now more
pronounced and there is a need to institutionalize the development, promotion and
implementation of a Resiliency Compliance Plan (RCP) to strengthen the capacity,
safety culture and disaster preparedness and response capability of the energy
sector.

NOW, THEREFORE, premises considered, the DOE hereby promulgates the
adoption of a resiliency program in the planning, project implementation and
operations of the energy supply sector.

SECTION 1: SCOPE AND APPLICATION

The policy shall apply to all energy industry participants in the energy
resource, renewable energy, power, oil and energy utilization sectors.

SECTION 2: GENERAL POLICIES AND PRINCIPLES.
Adoption of resiliency planning and program in the energy industry shall:

(a) Strengthen existing infrastructure facilities to adapt to and
withstand adverse conditions and disruptive events;

(b) Incorporate mitigation improvements into the reconstruction and
rehabilitation of infrastructure damaged in accordance to the
Build Back Better principle;

(c) Improve operational and maintenance standards and practices
to ensure expeditious restoration of energy supply in the
aftermath of disruptive events; and

(d) Develop resiliency standards for future construction of energy
facilities to ensure minimal damage and adoption of measures in
place for timely recovery and restoration of facilities for the
continued delivery of supply.

SECTION 3: DEFINITION OF TERMS
(a) “Adaptation” — the adjustment in natural or human systems in response to

actual or expected climatic stimuli or their effects, which moderates harm
or exploits beneficial opportunities.
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(b)

(c)

(d)

(e)

(f)

(9)

(h)

(i)

“Build Back Better’ — the use of the recovery, rehabilitation and
reconstruction phases after a disaster to increase the resilience of nations
and communities through integrating disaster risk reduction measures into
the restoration of physical infrastructure and societal systems, and into the
revitalization of livelihoods, economies and the environment.

“Disaster” — a serious disruption of the functioning of a community or a
society involving widespread human, material, economic or environmental
losses and impacts, which exceeds the ability of the affected community or
society to cope using its own resources. Disasters are often described as
a result of the combination of: the exposure to a hazard; the conditions of
vulnerability that are present, and insufficient capacity or measures to
reduce or cope with the potential negative consequences. Disaster
impacts may include loss of life, injury, disease and other negative effects
on human, physical, mental and social well-being, together with damage to
property, destruction of assets, loss of services, social and economic
disruption and environmental degradation.

“Hazard” — A process, phenomenon or human activity that may cause loss
of life, injury or other health impacts, property damage, social and
economic disruption or environmental degradation.

“Mitigation” — structural and non-structural measures undertaken to limit
the adverse impact of natural hazards, environmental degradation, and
technological hazards and to ensure the ability of at-risk communities to
address vuinerabilities aimed at minimizing the impact of disasters. Such
measures include, but are not limited to, hazard-resistant construction and
engineering works, the formulation and implementation of plans,
programs, projects and activities, awareness raising, knowledge
management, policies on land-use and resource management, as well as
the enforcement of comprehensive land-use planning, building and safety
standards, and legislation.

“Recovery” — refers to the restoration and improvement where appropriate,
of facilities, livelihood and living conditions of disaster-affected
communities, including efforts to reduce disaster risk factors, in
accordance with the principles of "Build Back Better”

“Resiliency” — the ability of a system, community or society exposed to
hazards to resist, absorb, accommodate and recover from the effects of a
hazard in a timely and efficient manner, including through the preservation
and restoration of its essential basic structures and functions.

“Response” — refers to the provision of emergency services and public
assistance during or immediately after a disaster in order to save lives,
reduce health impacts, ensure public safety and meet the basic
subsistence needs of the people affected.

“Structural and non-structural measures” - Structural measures are any
physical construction to reduce or avoid possible impacts of hazards, or

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Pi
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()

(k)

the application of engineering techniques or technology to achieve hazard
resistance and resilience in structures or systems. Non-structural
measures are measures not involving physical construction which use
knowledge, practice or agreement to reduce disaster risks and impacts, in
particular through policies and laws, public awareness raising, training and
education.

“Stockpiling” — refers to the disaster mitigation process of identification and
procuring essential inventory items beforehand.

“Systems” — refer to administrative directives, organizations, operational
skills and capacities, policies, guidelines, plans to implement strategies
and improved coping capacities to lessen the adverse impacts of hazards.

SECTION 4: RESILIENCY COMPLIANCE PLAN (RCP)

4.1

4.2

4.3

4.4.

The Resiliency Compliance Plan (RCP), in general, shall at a minimum,
contain adaptation measures, which include both structural and non-
structural measures options, to gauge infrastructure and human resource
preparedness during and in the aftermath of disruptive events.

The RCP shall be divided into, but not limited to, the following categories:
(a) Systems;
(b) Stockpiling;
(c) Response and recovery; and
(d) Strengthening Infrastructure.

Pursuant to their respective mandates and functions under the energy
laws, rules, and issuances, all energy industry participants are hereby
enjoined to provide full cooperation, prepare and implement their
respective RCPs, consistent with the category set in Section 6, and to
comply such that the objectives set out in this Circular are attained.

The DOE in coordination with all the energy industry participants shall
prepare the consolidated Energy Resiliency Plan for the Energy Sector.

Any resiliency programs identified in the RCP shall form part of the
planning criteria and will form part of the Philippine Energy Plan to include,
among others, the National Renewable Energy Plan (NREP), Power
Development Plan (PDP), Transmission Development Plan (TDP),
Distribution Development Plans (DDP), Missionary Electrification
Development Plan (MEDP), and Energy Efficiency Development Plan
(EEDP) of all energy industry participants.
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SECTION 5: COMPLIANCE, MONITORING, ENFORCEMENT AND POST-
EVALUATION

5.1

5.2

5.3

Within a period of six months upon effectivity of this Circular, all energy
industry participants shall submit to the DOE their respective RCPs. In the
case of Electric Cooperatives (ECs), respective RCPs shall be submitted
through National Electrification Administration (NEA), for review and
consolidation. The RCP shall be regularly reviewed every three (3) years,
or earlier, if deemed necessary. After conducting the review, energy
industry participants shall submit their revised RCP, if deemed necessary.

For this purpose, and for inclusion in the budgetary requirement of
implementation activities, the attached template in Annex A shall be
accomplished and submitted to the DOE. Thereafter, the submission shall
be made on an annual basis.

Upon the submission of the RCPs, a post-evaluation shall be conducted to
ensure its effectiveness and preparedness in implementing additional
measures based on actual experiences and lessons learned.

SECTION 6: FUNDING SOURCES FOR THE IMPLEMENTATION OF RESILIENCY
COMPLIANCE PLAN (RCP)

6.1

6.2

6.3

6.4

6.5

6.6

Private companies are encouraged to allocate funds for the
implementation of the RCPs.

Government agencies shall allocate funds in their annual plans and budget
for their facilities and other Disaster Risk Reduction and Management
(DRRM) measures stipulated in the RCPs.

Government-Owned or Controlled Corporations shall allocate funds in their
annual budget proposal subject to the existing guidelines of the
Department of Budget and Management.

National Disaster Risk Reduction and Management Fund to finance
disaster risk reduction or mitigation, prevention and preparation of
activities in line with the menu of projects of National Disaster Risk
Reduction and Management Council (NDRRMC).

Peoples’ Survival Fund to finance adaptation programs in line with the
objectives enumerated in Climate Change Action Plans of local
goverment units and communities and shall be implemented in
partnership with the Local Goverment Units and/or Local/community
organization as the lead institution to access the fund.

Small Power Utilities Group shall source capital expense for rehabilitation
and facilities for new areas of development based on the approved MEDP
from its share from the Universal Charge and/or other sources as it may
be obtained pursuant to Rule 13, Section 4 of Rules and Regulations to
implement Republic Act No. 9136.
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6.7

6.8

ECs may source development programs and/or capital expenditure
through disaster risk with the assistance of the NEA and Energy

Regulatory Commission (ERC).

To ensure immediate actions during disasters and emergencies, the ECs
may request assistance from NEA.

SECTION 7: TASK FORCE ON ENERGY RESILIENCY

a

7.2

7.3

in accordance with Section 2 hereof, the Task Force on Energy Resiliency
(the fask force) is hereby created to oversee the implementation of this
Circular and being empowered with coordination, integration, supervision,
monitoring and evaluation functions related to Energy Resiliency.

The Task Force shall be headed by the Secretary of the Department of
Energy or his designated Undersecretary as the Chairperson.

The members of the Task Force shall be composed of the following:

(a) National Electrification Administration (NEA);

(b) National Grid Corporation of the Philippines (NGCP);

(c) National Power Corporation (NPC);

(d) National Transmission Corporation (T ransCo);

(e) Philippine National Oil Company (PNOC); and

(f) Power Sector Assets & Liabilities Management Corp. (PSALM);
The Task Force may invite other agencies and government
instrumentalities or affected stakeholders from the agency sectors, as may
be deemed necessary, to attain the objectives of this Circular.
The Task Force shall have the following functions:

(a) Ensure that government agencies and private institutions are
prepared for the development and adoption of their respective

resiliency programs,

(b) Create inter-agency technical working group as may be
necessary to fulfil its mandate; and

(c) Perform such other functions as may be necessary and
incidental to attain the objectives of this Circular.

The Task Force shall be supported by Energy Policy and Planning Bureau
of the Department of Energy, with the following functions:

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(a) Provide necessary administrative and technical support to the
Task Force;

(b) Monitor the status of the implementation of the RCP;

(c) Prepare reports, such as progress reports and accomplishment
reports for submission to the Chairperson, and

(d) Perform other tasks and_ functions delegated by the
Chairperson.

SECTION 8: REGULATORY SUPPORT

8.1

8.2

8.3

The DOE shall, within one (1) year from effectivity of this Circular,
coordinate with other concerned government agencies and industry
participants, for the issuance of appropriate guidelines for the
implementation of this Circular. The DOE shall make further coordination
for the development of relevant resiliency standards for inclusion in their
respective operating manuals, related issuances, rules and regulations.

The concemed bureaus of DOE shall ensure the adoption of the RCP
based on their respective mandates and subject to their established
standards, rules and regulations. For this purpose, each of the concerned
Bureaus shall develop their own guidelines, specific to the energy sector
they cater to, to monitor and ensure compliance with the provisions of this

Circular.

in the case of regulated entities, such as distribution utilities, the recovery
of capital and operational expenses is subject to the approval of the ERC.

SECTION 9: REPEALING CLAUSE.

Nothing in this Circular shall be construed as to amend, supersede, or
repeal any of the mechanism or institutions already existing or
responsibilities already imposed and provided for under any existing law,
rule, or contract.

SECTION 10: SEPARABILITY CLAUSE.

if for any reason, any section or provision of this Circular is declared
unconstitutional or invalid, the other parts or provisions hereof that are not
affected thereby shall continue to be in full force and effect.

SECTION 11: EFFECTIVITY.

This Circular shall take effect immediately upon its publication in at least
two (2) newspapers of general circulation and shall remain in effect until

otherwise revoked.
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Signed this day of 2018 at DOE, Energy
Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila.

|
FO SOG: CU |

retary
,

Republic of the Philippinas
DEPARTMENT OF ENERGY
1 REPLYING PLS. CITE:

DOE-AGC-18006457
10000

JAN 17 2018
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Annex A: Resiliency Compliance Plan Template

a Yearly Disbursement

Project | Project

Project | Project Project

Categories Start | Completion | Project | OG, 2020
Description | Benefit | nate | Date Cost 2017 | 2018 | 2019 | and
Beyond

Systems
Persons
Facilities
Standard
Operating
Procedures (SOPs)
Product /Content |
Stockpiling
>

VV V

Inventory

Response and Recovery
>» Pre
> During

> Post

Strengthening Infrastructure

Others

~*P- Proposed, OL- On-Going, PL-Pipeline, C-Completed