QuestionsQuestions (EXECUTIVE ORDER NO. 66)
Executive Order No. 66 designates the Department of Energy (DOE) as the lead government agency to ensure a unified and coordinated effort to develop a successful and robust Philippine natural gas industry, anchored on the President’s authority and the policy/missions under R.A. 7638 (Department of Energy Act of 1992).
The DOE is designated as the lead government agency to ensure unified and coordinated government efforts toward establishing and developing the natural gas industry.
EO No. 66 cites: (1) Section 2 (DOE Act policy on continuous, adequate, economic energy supply with ecological concerns and self-reliance); (2) Section 4(a) and 5(b) (DOE to formulate policies/programs and to integrate/rationalize/coordinate energy programs with preferential bias for environment-friendly, indigenous, low-cost sources); (3) Section 5(c) (DOE to establish/administer programs covering exploration, transportation, marketing, distribution, utilization, conservation, stockpiling, and storage of energy resources of all forms); and (4) Section 5(e) (DOE to regulate private sector activities relative to energy projects, while providing an environment conducive to private participation and investment).
DOE shall recommend appropriate policy statements, industry rules and guidelines, and other issuances to facilitate and encourage private sector investments and participation in the natural gas industry.
DOE may call upon any department, agency, or instrumentality of the Government for assistance to ensure natural gas industry development.
DOE may retain technical consultants of proven and internationally recognized natural gas technology expertise as necessary, subject to existing rules and regulations on consultancy contracts.
All government agencies must assist and cooperate with DOE as necessary to develop and implement programs for the natural gas industry.
Section 5 provides that funding requirements for tasks under the Order shall be charged against savings from DOE appropriations for the first year of implementation. Funds for succeeding years shall be charged against DOE’s regular appropriations.
Section 6 states the Order shall take effect immediately, implying that DOE and other agencies are expected to begin implementation without waiting for a further effective date.
The Malampaya project is described as the largest and most important investment of its kind and as representing the beginning of the natural gas industry in the Philippines, providing factual context and justification for developing the industry.
EO No. 66 notes that natural gas is recognized as an environment-friendly, indigenous, and low-cost source of energy among indigenous resources, aligning with R.A. 7638’s policy not to sacrifice ecological concerns.
It signals that EO No. 66 (and R.A. 7638, particularly Section 5(e)) aims to create a regulatory environment that encourages and facilitates free and active private sector investment and participation in energy projects, including natural gas.
Section 2 tasks DOE with recommending policy statements, industry rules, and guidelines, while R.A. 7638 Section 5(e) (as cited) authorizes DOE to regulate private sector energy activities. Together, they indicate DOE both develops rules/guidelines and regulates energy-related private activities.
Coordination is mandated: DOE can request assistance (Sec. 3) and all government agencies must assist and cooperate (Sec. 4) to develop and implement natural gas industry programs.
It is mainly an administrative/coordination measure. The operative provisions focus on designating DOE as lead agency, tasking DOE to recommend issuances and coordinate government efforts, and providing procedural mechanisms (consultants, inter-agency cooperation, funding source, effectivity). While it references regulation of private sector activities via R.A. 7638, EO No. 66 itself does not directly impose detailed regulatory duties on private entities.