Republic ofthe Philippinesiouse of Representatives

Quezon City, 9detro Mani&

:OURTEENTH CONGRESS

ECTION 1 . Title - This Act shall be known as the "Bataan NucleaPower Plant Re-Commissioning Act of 2008 ."

2- Declaration qfPolicy - Section 16, Article I I of thConstitution provides that : "The State shall protect, andthe people to a balanced and healthful ecology in accord with the rhythm anharmony of natur

Second Regular Session

Section 8, Article 11 further provides that : "The Philippines, consistentwith the national interest, adopts and pursues a policy of freedom fromweapons in its territory.

Therefore, it is hereby the declared policy of the State to developnuclear energy as a distinct and substantial Dart of the country's enemy mix.

ar

Such a policy is intended as pro active action in addressing the everworsening global warming and carbon emissions issue and the possible

ctions against the use of carbon based fuels which are likely to occur in thefuture.

Such a policy is also pro active in addressing the energy sourcesnecessary in the coming "clean" hydrogen economy.

Last importantly, such a policy will partially but substantially address,the three Gigawatt shortfall in the nation's electric generating capacityprojected to happen before the year 2012 .

SECTION 3. Mandate & Authority to Re-commission - It is herebymandated and authorized that the immediate re-commissioning andcommercial operation of the Bataan Nuclear Power Plant (BNPP) shall beundertaken by the National Power Corporation (NAPOCOR), in consonancewith its mandate under R . A. 6395, series of 1971 . This vested mandate andauthority shall be under the direct supervision and control by the Departmentof energy and regulations and safeguards by the Philippine Nuclear ResearchInstitute (PNRI), or the subsequent governmental agency mandated tooversee the licensing and regulations of a nuclear power plant. TheNAPOCOR may spin-off portions of its organization which are presentlyoverseeing the preservation and maintenance of BNPP, its engineering andtechnical, and administrative staff to form a government owned corporation tofurther hasten and streamline the re-commissioning process of the nuclearplant .

SECTION 4. HAuTan, over Mechanical & CivilPortions including theNuclear Steam SuppQ System QWSS) aid AWlanne of Plant Equipment(BOP) - The NAPOCOR, after thorough assessment, evaluation,maintenance, repair, replacements, rehabilitation or upgrades, necessarythe Mechanical & Civil Portions including the Nuclear steam Supp(NSSS) and Balance of Plant Equipment (130P) shall warrant that thconforms to the Philippine nuclear industry state of the art as of July 1, 1986.Provided, that, it will also retain and/or include modifications to allow all USNuclear Regulatory Commission rulings regarding operating guidelinerevisions pertinent to "the Three Mile Island" nuclear accident which occurredon hatch 28, 1979- And subsequent operating guideline revisions viz the

ties or model of nuclear plants to which the BNPP belongs, wherelicable .

common

SECTION 5. 10mmilty over InstrumentationEquipment - The existing main instrument and control

whole as needed- Theration shall also ensure that

electronic controls, sensors, and dataIves and actuators - non-mechanical) are

scrapped, selectivelyubsequent government

& C) pon systems (servo

trotuipment may0COnstrur

modernized according to the latest state of the art in the nuclear powerindustry as of the date at which this Act shall take into effect. Digital systemsshould be employed similar to the upgrades being implemented by old nuclearplants implementing improvements of its I & C systems, but only applicable tothe series or model of nuclear plants to which the BNPP belongs, whereapplicable_ Although modern, such systems must also be mature, stable, andwell accepted (in prior mainstream use) by the western nuclear power industry.

Should there be a delay in the implementation of this Act, then, in nocase shall any new I & C equipment be installed that will be greater than orequal to ten (10) calendar years into its product life cycle, i_e. the commerciallaunching date of the product. The reckoning date for these products age willbe computed from the date of ire-commissioning of the BNPP_

Such upgrades in the I & C equipment should already include allrevisions and guidelines pertinent to the Three Mile Island and Chernobylaccidents, but only applicable to the series or model of nuclear plants to whichthe BNPP belongs, where applicable .

othing in this section shall be interpreted as giving the NAPOCOR orthe subsequent government corporation the blanket authority to implement,apply or institute physical changes or otheroperating guidelines not otherwiseapplicable to the series or model of nuclear plants to which the BNPP belongs.

SECTION 6. Hiring ofTechnical Personnel - Upon the enactment ofthis Act, the NAPOCOR or the subsequent government corporation shallforthwith hire, recruit, anchor engage the services of the necessary skilledmanpower for the management and operation of all the technical aspects ofthe plant.

For the first ten years of operation, the Philippine nationalityrequirements for the filling up of the technical, supervisory and managerialpositions required by the plant is hereby waived_

SECTION 7.

Development of Local Skilled Manpower - TheNAPOCOR or the subsequent government corporation shall implement aprogram for training, cultivating and developing

a pool of necessary 'localskilled manpower for the management and operation of all the technicalaspects of the plantand for a fixture nuclear power industry.

The University of the Philippines is hereby mandated to offer courses innuclear engineering and nuclear plant operation_

A separate budget for hands on training, simulator training and/or furtheracademic training abroad of operating personnel shall be allocated,chargeable against government revenues generated from all power generatingand power distribution entities, and shall be of a magnitude that is asubstantial percentage if not equal to the BNPP manpower budget.

SECTION 8. CompensationlSalary Rates - The state is authorized andempowered to pay competitive rates which is defined as the average betweenthe United States, Canadian (denominated in US Dollar) and France(denominated in Euro) rates for technical personnel in managerial andsupervisory positions, and half of the average rate of the United States,Canadian (denominated in US Dollar) and France (denominated in Euro) ratesfor technical non-supervisory positions.

SECTION 9.

AllQeations f& disposal jr Spent Fuel andDecommissioning cy"Afe jBBTNVPPIP -in the operation of the plant, the NAPOCORor the subsequent government corporation shall allocate as a sinking fund,U.S. 00.1-00.2/kwh to cover the expenses for the future decommissioning ofthe plant at the end of its operational life . NAPOCOR or the subsequentgovernment corporation shall also allocate U.S. 00 .1/Kwh for costs ofradioactive waste disposal and spent fuel disposal program of BNPP.

Upon collection of fees for its product, the BNPP shall turn over the saidfunds to the rational Treasury on a monthly basis. The said fund shall then beconverted at the first day of every month into hard currency, which is definedas a fifty percent (50%) mix of U.S . Dollars and Euro.

These funds shall be under the custody of the Treasurer of thePhilippines .

Disbursement and fund management shall be governed byimplementing guidelines to be agreed upon by DOE, NAPOCOR or thesubsequent government corporation, PNRI and the Department of Finance.These institutions will exert their utmost effort to ensure that the value of thefund is not eroded by inflation. These institutions shall also ensure that thefunds earn at least the market rates of interest in dollar and auto currencies,if not better.

The disposal of radioactive wastes may be through a local scheme to beworked out by Congress or, through an IAEA recognized re-processor . Theaccount for the funds shall be called: The BNPP Spent Fuel Disposal Fund(BSFDF) . The BSFDF can only be utilized for final disposition of spent fuel .

The account for the funds set aside for the purpose of decommissioningthe plant and making safe the plant site at the end of its operating or physical

lifetime of forty years shall be called : The BNPP End of Life DecommissioningFund (BELDF)-

In the event that the BELDF and the BSFDF will have surpluses afterthe above conditions are met, these funds shall be used to further develop thenuclear power Ind

SECTION 10.

Re-use ofReprocessed Fuel - Reprocessed Fuel maybe reused by the BNPP: Provided, That in such a case, the BNPP Spent FuelDisposal Fund shall not be utilized .

ION 11 . Deflinifion & Extension of Operational Lifetime - Theoperational lifetime of the BNPP shall be defined as forty (40) years from thedate of its commercial operation .

SECTION 12. Emergency Evacuation Man - Thestablish an emergency evacuation plan within the presaround the plant in accordance with the regulatory requirements of PN

tensions of the Aefined operational lifetime of the BNPP may begranted by the PNRI or the subsequent governmental agency taskedperform the licensing and regulations of nuclear power plants in the country atthe time of application for the extension of its operational lifetime , Provided,That the duration of the extended operational lifetime does not exceed twenty(2{l) years per extension .

Such an extension of BNPP's commercial life is to be determined by thetechnical realities of the day, and the prior experience of license extensisimilar plants operated in Canada, the U .S. and France .

SECTION 13. Cost ofRehabilitation - The NAPOCOR shall endeavorto complete this mandate at a cost that is substantially below one hallcost of a brand new coal fired power plant of equal capacity_ nocircumstances shall the cost exceed the price of a brand new coal fired powerplant of equivalent power generating capacity.

rya Re-commissioning - The PresidentDOE or a subsequent agency which may be created by the ireCongress is hereby given the authority to determine and decidewhich the mandate of this pct is to be attained, as long as

-ovided for in the preceding sections are met. Such modeadministration, and/or by contract to rehabilitate but not to operate.

11-- )

SECTION~15'

andRegulations - The Secretary of

Energy,

ofPresident

f~~

`.~~~

^

^ .

and the Director of the Philippine Nuclear Research Institute, shall promulgatethe necessary rules and regulations for the effective implementation of this

Oversight (W%utittee

Oversight CommitteEehereby created which shall be composed of Chairmen of the Committees onEnergy _. -~~ Senate and ~~~ .~~~s~ ~. Representatives ~~,.~ ,o~. (4) additional

each "_--- --

~~"---'- from

'

~~ --~~ designated by~~ ~~~designated

-~~~~~~~~~m~~ President ~-`~~~~ ~`~of ~~

~~_~_____. _~ __ Houseo___ _ . Representatives, respectively . ~~e OversightCommittee

monitor and ensure the proper implementation of this Act.

SECTION 17. Appropriations _ The amount necessary for the iritil

implementation of this Act shall be charged against the appropriations of theDepartment of Energy under the current General Appropriations Act, orappropriated and covered by NAPOCOR or subsequent government

corporation in its annul budget. Thsm~^su00as may be necessaryfor its full implementation shall be included in the annual GeneralAppropriations Act as a distinct and separate item.

SECTION 18.

If for any reason, any section orprovision of this Act is declared to be unconstitutional, the other sections orprovisions hereof which are not affected thereby shall continue to be in full

torce and

Approved,

__SECTION-__~Q~ laws,~~~- Repealing__-_~~ _-____

._.decrees, executive

-__-__._`

rules and regulations, and other'

ances, or any part thereof,

are'

with this Act, are hereby repealed or modified accordingly.

ON 20. Effectivity Clause - This Act shall take effect fifteen (15)days from the date cof its publication '

at least two (2) newspapers of

circulation,

general-

Republic of the PhilippinesHouse of Representatives

Quezon City, Metro Manila

FOURTEENTH CONGRESS

Second Regular Session

4631HOUSE BILL NO.

Introduced by Hon . Mark O. Cojuangco

Explanatory Note

Global Warming is now mankind's greatest threat and greatestchallenge .

The status and outlook of humanity's conventional energy resourcesand its ever increasing negative interaction with our planet's environment,$140 per barrel of oil, P10/kwh electricity, and the ever increasingmanifestations of global warming, compel us as responsible leaders intomaking important and revolutionary decisions today.

These decisions affect the future viability and empowerment of ourpeople to be masters of their destiny .

All these, compel us to look dispassionately at the options available tous in bringing the conflicting and opposing necessities and realities of; cheaperand more abundant energy and, a cleaner, more healthful, and non-earthdamaging environment .

I believe strongly that these necessities and realities do not have to beconflicting and opposing.

Indeed, clean power, cheap power are words or phrases that, at firstglance, seem to be oxymoronic.

But, can such phrases be true?

The Philippines has an asset, which has been paid for by society manytimes over, its original price or worth.

Certain sectors will claim it is so because of fraud, certain sectorsotherwise and for other reasons.

To be sure, the reason why this asset came into being, and into disuseare, in my humble opinion, and in two words; NEED, and POLITICS .

Whatever the reasons, the bottom line- is that this asset is now a part ofthe patrimony of the nation . It can forever be, a useless hulk or, it can be asavior of our energy situation and, a tipping point in our national outlook as faras energy and prosperity are concerned :

I am referring of course, to the mothballed Bataan Nuclear Power Plant(BNPP)° 620 megawatts of clean, reliable and `cheap power, just waiting tohappen

I realize that many of you are not convinced, that many. of our- peopleare not convinced. And also, that many, have very legitimate anxieties,apprehensions and fears about the possibility of the Philippines adoptingnuclearpower as an alternative source of energy, let alone to commission andrun the BNPP as a viable and quick solution to our energy problems.

And so, I file this bill, a bill which seeks to make it a law, that ourgovernment do all it can to make the BNPP a safe, clean, and functionalnuclear power plant.

At the very least, it is my opinion and hope that filing this bill will start orspark a national debate on the merits and demerits of nuclear power as aviable energy option . It will therefore be the means to a more informed publicchoice on the future of nuclear power in this country.

But let me state that I believe it is in the country's best interests that theBNPP be operated. It is also my belief that the nuclear power option is still thebest choice that the country can make to balance the supposedly conflictingneeds of abundant power (energy), cheap power (energy), clean andharmless energy (power), for future and new power plants .

Let me also state the following facts, although not exhaustive, in aneffort to inform :

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ELECTRIC POWER AVAILABILITY

It is a recognized fact that power consumption is a leading indicator of acountry's propensity to progress or egress. Electricity consumption isconsidered to be a direct indicator of life expectancy, quality of `life and ;prosperity specially in developing countries.

It is a national projection and fact that we will need an additional three(3) Gigawatts (3,000 megawatts) of base load capacity by the year 2012. Tomeet that need, and since it .takes three to five years to build new plants,nuclear or otherwise, we need to be building the capacity TODAY, or facebrownouts as we have' in the past.

STATISTICS :

In the U.S., statistically, 30, 000 plus deaths occur every year which aredirectly attributable to the emissions of conventional power sources. Zero (0)deaths per year are attributable to nuclear power generation . Even theaccident at Three Mile Island on March 28,1979, which is considered to beone of most serious accident ever in the history of nuclear power plantoperations, caused zero injuries and zero deaths. This was the -same accidentwhich caused the suspension and downturn of the nuclear power industry inthe U.S., until recent times.

The deaths which occurevery single year and which are attributable toconventional power are greater in magnitude to the deaths attributable to theone time event of Chernobyl. And yet, they are not sensational so as to becovered in the news.

In sum, for the last fifty plus years of Commercial Nuclear Power in theU.S., nuclear power, considering Chernobyl and Three Mile Island, has beenand is, the- safest and most reliable form of electric power generation everinvented by man.

SHARED RISK:

Without operating BNPP, we already share in the nuclear risk withoutsharing in any of its benefits. There are man nuclear plants surrounding thePhilippines, and theme are nuclear vessels plying the waters around us.

Six (6) in Taiwan, Twenty (20) in South Korea, Eleven (11) in China,Fifty Five (55) in Japan. With the on-going renaissance of the nuclear powerindustry, these countries have nuclearplants either under construction or inthe process of being purchased. A total of eighty- one (81) additional units willcome on line in' the next few years- Aside from this, two of our very nearneighbors, Vietnam and Indonesia have intentions to build six (6) units for theirpowerneeds. Malaysia and Thailand are both revisiting their nuclearoptions.

The developed world, has realized more and more acutely, the impact offossil fuel burning, most specially of coal, and C02 emissions on globalwarming. They have come up with a system in the Tokyo Protocol by whichthe rich countries pay poorer ones a fee, to reduce or forego, carbonemissions .

More and more, the peoples of the world are beginning to perceive thatburning coal and fossil fuels for energy is akin to pumping out nature's septictanks which took billions ofyears for nature and life to deposit. And thereafter,spreading all the filth around.

And so, today we see "Carbon Credits" being traded as a means tomitigate greenhouse gas emissions.

But, who is not to say that tomorrow, if the situation becomes morecritical or urgent, the more developed countries may seek to ban, or imposesanctions, or duties on carbon emissions?

Without the technical alternative of nuclear, where will we be, then?What do we do then?

We can earn respectability in the international community by loweringour carbon footprint today. We can do this by running BNPP.

HYDROGEN:

Today, commercial hydrogen comes from fossil sources .

The coming age in mobile energy consumption, will be the age of, THEHYDROGEN ECONOMY

0

It will be an age wherein hydrogen will come from non-fossil sources, bymandate, more than by market forces and by necessity, more than by caprice.

Hydrogen, as avehicle

or vessel for energy transmission by directhydrogen combustion. Or, by the use of hydrogen to synthesizel7iquefylgasifyandlor extend existing carbon (fossil) and/or renewable carbon (biomes)sources. Or, by the direct conversion of hydrogen into electricity via fuel celltechnology.

Hydrogen, will become the mobile fuel of choice.

This age will usher in pollution free power for mobile applications, i.e.,cars, buses, trucks, etc.

When that age comes, where will we get our hydrogen from? Definitelynot from fossil sources. That would be a self defeating exercise . By then, willwe have the necessary nuclearinfrastructure and capacity in place to enableus to 'generate the hydrogen that we will need to be participants in that new -age? Or, will we again, be left behind?

To be truly ready' to enter and be a participant in the corning hydrogen'economy, we need a clean, cheap and reliable source of nuclear electricpower to generate the hydrogen form non fossil sources. Running the BNPPwill put us on that path.

NUCLEAR FUEL & THE ALTERNATIVES

Traditionally, the nuclear power industry has relied on Uranium for itsfuel. There is enough Uranium in the world to last for many centuries at evenincreased rates ofconsumption.

There is also, another as yet under-exploited source for nuclear fuel. Itis he element, Thorium: It is four times more abundant than Uranium in theEarth, and it increases the total source of fissile material by more than 400%.

This implies that energy resources for nuclear power generation are ingreat abundance, so as to be considered limitless on our time horizons, even ifwe consider our grandchildren's grandchildren's grandchildren's lifetimes.

CAPACITY AND COST

The BNPP, at 620 MW of power, could have been enough to power theislands of the Visayas which are now starting to experience rotating brownoutsin some of its islands.

If made to operate, it would meet twenty percent (20%) of our expectedshortfall of three (3) Gigawatts by 2012. This is not a small matter;

Some say that the nuclear power plant is expensive. That argument ismoot. BNPP is already paid for If allowed to run, its electricity production costs .would be cheaper by many pesos per kwh as compared to oil-fired thermal,coal or natural gas plants. This statement would still be true even if we werebuilding a new plant today.

Nuclear Power is the cheapest form of electric power generation if youexclude the best hydra electric plants to which it is about equal. No hydro

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plants in the Philippines today approach these efficiencies because our waterresources for hydro are of limited volume or flow rate .

The average generating cost of the industry in the U. S. is U. S. ¢ 1. 66 orP0. 73lkwh at P43 to a dollar rate . This cost includes waste disposal at U.S.¢0.1/kwh and decommissioning at U.S. . ¢0.1 - ¢0.2 lkwh (source: WorldNuclear Association) . Furthermore, the uptime reliability of nuclear power isupwards of ninety five percent (951). A reliability which no other powergenerating technology can match.

GEOLOGICAL LOCATION

A very many nuclear plants and other nuclear facilities in the world arelocated near geological fault lines. The BNPP is located on sound bedrock andits' location is as good as that of any other comparable plant. It is beside afault line_ It does not straddle the fault line. There is a universe of difference inthese two statements.

Top geologists have evaluated Bataan and, with the exception of Mt.Natib which is a dormant volcano whose last eruption was estimated to havebeen between 11.3 to 18 thousand years ago (Cabato et. al. 2005) and whichis ten kilometers (10 km) from the BNPP, could Find no anomalies in locatingthe plant there.

Mt. Natib is an issue that may be a contentious one. Its discussion inthis note would be too lengthy.

Let me state therefore that it is an issue that demands ourjudgement.

However, as we take the issue up in committee, let me furtherjust statefor now that l believe the issue to be moot, for many reasons.

Even with an earthquake fault near the plant, the geologic study ofBNPP, as part of its Safety Analysis Review, has given a seismic movementdesign of the plant at 0.4 G to 0. 6 G or about Intensity 8 and plus in layman'slanguage.

The BNPP has already been through several of such events. Mostnotably, the earthquake of 1990, and the eruption of Mt. Pinatubo . Theseevents have not caused any effect on the BNPP. Its soundness of location,and its structure has therefore, already been tested in real life, not just intheory.

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Even the U.S. - National nuclear waste repository being completed atYuca mountain Nevada is crisscrossed by faults and intrusions.

I have been infonned unofficially that the BNPP already has the site fora second nuclear plant largely in place. This implies that subsequentexpansions of its capacity may be achieved at reduced costs. It would addtremendously to the economies of scale for BNPP as opposed to the settingup of a greenfield plant elsewhere in the country.

The BNPP site had been studied for eleven (11) years prior to thedecision to purchase it in the 70's. More recently, and again in the 90's, it hasalso been evaluated and re-evaluated by the IAEA and has been found to besound in accordance with their guidelines .

SAFETY OF DESIGN AND RELIABILITY

IPPs' COAL FIRED POWER PLANT

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The design of the BNPP is not unique . BNPP has three (3) sister plantswhich were constructed simultaneously during the 70's. These are the Krskoin Yugoslavia (which is Slovenia now), Kori 2 in South Korea and Angra 1 inBrazil. These three powerplants have been in operation for over twenty (20)years now and, we have not heard any news that any one has incurred anyminor or major accident. All have impeccable safety records . Further, theBNPP has cousin plants in the US. of earlier and later design with minorvariations . Such as: the Farley Plant in Alabama, Palo Verde Unit 1, 11, & 111 inArizona; Diablo Canyon and San Onofre Plants in California, Callaway NuclearPlant in Missouri, Indian Point Energy Center Units 2 & 3 I New York, ShearonHarris Nuclear Power Plant in North Carolina. These plants have also hadimpeccable safety records.

Many nuclear plants have applied for extended operating licenses of anadditional twenty years from the initial forty years. Many have already beengranted extended operating licenses.

The plant type of BNPP is PWR or Pressurized Water Reactor whichaccounts for 265 nuclear power plants of the total 439 operating worldwide(based on 2007 figures) or 601.

Inspite of this figure, not a single death hasbeen attributed to the operation of this type of nuclear power plant in the lastforty plus years.

By comparison, a coal fired power plants with an equivalent 620 MW toBNPP would;

1 .

Consume approximately 1.732M tons coal/year;2.

Emit approximately 4.588M tons of Carbon Dioxide (CO2) a year,3.

Spread amounts of Mercury, Cadmium, Lead and other heavymetals, Uranium, and Thorium in the ash or particulates which itspews out into the surroundings.

A coal plant therefore, concentrates these trace elements up to ten (10)times their original level (Sci Am Dec. 13, 2007) in its particulate emmissionsand releases it into the environment. And because there are traces of Uraniumand Thorium in the ash, a coal plant spews out radiation. The same is so withother fossil burning plants . And, if you think that a natural gas power plant iscleaner than coal, it is only relatively so . An equivalent 620 MINgas fired plantwould emit Y2 that of a coal plant or 2.65 Million metric tons ofC02/year.

No matter what the advertisements say, there is no such thing as "clean"coal. When you bum coal, the natural consequence is C02. And although C02may be physically clean and invisible, it is the gas which is the major cause ofglobal warming. It may be called "clean" but it is definitely harmful in theamounts at which we are spewing it out today.

FRANCE

The energypolicies of France are, to emulate.

France today derives 80% of its electric power from nuclear, and a bigportion of the balance from hydro.

As such, France has one of the lowest Carbon footprints of any countryin the western world.

The French therefore, stand on moral high ground when harm to theEarth and global warming issues are discussed. It gives them a clearadvantage in trade and economic negotiations with other countries of theworld.

It also gives the French, the cheapest electricity in Western Europe, andone of the cheapest in the world.

THE GREENS

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If I were an economic power, would I promote nuclear in the developingworld? 1 don't think so. Subliminally at the very least, I would not nurture,potential competitors to the wodd's other resources, which cheap power wouldenable poorer peoples to consume. And so, I comment on the local influenceof the Green and other groups from abroad.

We have listened to the greens from abroad and have given them greatweight in determining our energy future. In the light of global warming, many ofthem, such as Patrick Moore, one of the founders of Greenpeace, and alsomembers of other notable groups such as James Lovelock of GAIA, have nowchanged their minds about nuclear_ These people now say that nuclear is theonly viable energy alternative if we are to preserve the Earth. Shouldn't we atleast think about why these people have had a change of heart?.

In a privilege speech recently given, the Hon. Roilo Golez reported onthe issues of global warming as elucidated by former U.S. Vice President AIGore. Although the Hon. Golez did not mention it, Al Gore has stated that."nuclearpower has a role to play in solving the issue of global warming."

COST TO REHABILITATE

The alternative to the rehabilitation of the BNPP is an equivalently sizedcoal fired power plant or gas fired power plant.

billion .Such a plant would supposedly cost between U.S. $900 million to $ 9

It stands to reason therefore, that BNPP should come in under thesecosts or at the very worst, at an equal to this cost.

But it is not quite as simple as that because we do have to consider thehidden costs and risks involved in building a coal or gas fired power plant, as Ihave maybe already overstated.

1 personally believe that the cost should be at about half of a new coalfired power plant. My reasoning for such a conclusion will be argued atcommittee. I do recognize that there may be matters which l have notconsidered in my estimation of these costs but 1 am sure that they will bebrought out in committee .

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I believe that the reasons that I have put forth are both substantial andcompelling . We have paid the price before as we pay it now, for our failure tolook well at viable alternatives .

We, have become laggards in the regional economic competition . Ouronly saving grace being our OFWs. Our people, are having a hard timekeeping up with, and competing with our competitors, and surviving theeconomic contests that determine who becomes prosperous and who doesnot.

Conditions are now right for us to take a second look, to search oursouls, to use our minds, and to let logic and hope, rather than fear andignorance, rule .

For these reasons and more, I hope that this bill wilt be vigorouslysupported . Our people deserve cheap power. Our people deserve thePOWER, literally, to change and take charge of their lives .

The choice is ours. If we act now, we will still be ahead of the curve. Ifwe wait until everyone else jumps on the nuclear bandwagon, we will be toolate to reap low prices . We will be faced with shortages of manpower skilled inthe art of nuclear power generation, and shortages in the capacity to buildnew nuclear power plants.

If we inventory all our available base load power, that which makes upthe foundation of our generating capacity, we will find that our natural gasreserves are good for only twenty years after which, they will already bereaching exhaustion. The only recourse will be to buy from the open market.Natural gas is much more expensive than coal as far as electric powergeneration is concerned.

As for coal, in several more years, its cost would be very prohibitive dueto the enormous expansion and industrialization of China and India wheremost of the coal supplies for our coal fired plants come from. This is not tomention the increasing cost of coal shipments which follow the price of oil .They have already doubled and will increase further .

Given this scenario, where therefore, can we now get our base loadenergy?

Not from the wind, nor from the sun, nor from the water. Simply becausethey are not available on demand and are unsuitable as a base load source .

We are now at the same crossroads that we were in, at the start of thefirst oil crisis in the early 70's and which ended in the mid-80's.

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This time however, it will be much worse as world demand for oil andcoal have skyrocketed, with many new and large players (China, India) vyingfor the same limited resource.

There are many more detailed reasons and nuances to be debated anddiscussed regarding this bill . Too many to mention in this explanatory note andto be enumerated in the bill proper itself.

I have therefore decided to filter out these issues and reserve myarguments for committee and plenary deliberations should the bill reach thatlevel .

But, the meat of the matter is that BIVPP should be operated post hasteand that the country should adopt a progressive nuclear power and nuclearenergy policy .

As citizens of the world, we must do our part, in keeping the Earth as ahabitable place . And yet, we must benefit from the effort, in a material way.

As they say in llokano, Di Ak Kita . Di Ak Pati . To see is to believe. Withover fifty years of an impeccable safety record and proven economy andefficiency, what more do we need to see?

The power to change our future for the better is now in our hands . It hasalways been . God bless us.

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