Adminstrative Law Arellano Univeristy School of Law aiza ebina/2015
GE!"#$ vs %E&A'(E)' !* E)EG+ 52, S"A -.Non-Delegation of Legislative Power *A"'S Petitioners Petitioners Romeo P. Gerochi, Katulong Ng Bayan (KB), and Environmentalist Environmentalist Consumers Networ, !nc. come "e#ore this Court in this original action $raying that %ection &' o# Re$u"lic Re$u"lic ct *&+, otherwise nown as the Electric Power !ndustry Re#orm ct o# -*/, im$osing the 0niversal Charge, and Rule *1 o# the Rules and Regulations which sees to im$lement im$lement the said im$osition, "e declared unconstitutional.
%EC2!3N &'. 0niversal Charge. 4 5ithin one (*) year #rom the e6ectivity o# this ct, a universal charge to "e determined, 78ed and a$$roved "y the ERC, shall "e im$osed on all electricity end9users #or the #ollowing $ur$oses: (a) Payment #or the the stranded de"ts de"ts in e8cess e8cess o# the amount amount assumed "y the National Government Government and stranded contract costs o# NPC and as well as ;uali7ed stranded contract costs o# distri"ution utilities resulting #rom the restructuring o# the industry< (") =issionary electri7cation<>+? electri7cation<>+? (c) 2he e;uali@ation o# the ta8es ta8es and royalties a$$lied a$$lied to indigenous or renewa"le renewa"le sources sources o# energy vis9A9 vis im$orted energy #uels< (d) n environmental environmental charge e;uivalent e;uivalent to one9#ourth o# one centavo $er ilowatt9hour ilowatt9hour (P.-5h), which which shall shall accrue accrue to an envir environm onment ental al #und #und to "e used used solely solely #or waters watershed hed reha" reha"ili ilitat tation ion and and management. %aid #und shall "e managed "y NPC under e8isting arrangements< and (e) charge to account #or all #orms o# cross9su"sidies #or a $eriod not e8ceeding three three (&) years 2he universal charge shall "e a non9"y$assa"le charge which shall "e $assed on and collected #rom all end9users on a monthly "asis "y the distri"ution utilities. Collections "y the distri"ution utilities and the 2RN%C3 in any given month shall "e remitted remitted to the P%D= Cor$. on or "e#ore the 7#teenth 7#teenth (*th) o# the succeeding month, net o# any amount due to the distri"ution utility. utility. ny end9user or sel#9generating sel#9generating entity not connecte connected d to a distri"ut distri"ution ion utility shall remit remit its corres$ondi corres$onding ng universa universall charge charge directl directly y to the 2RN%C3. 2RN%C3. 2he P%D= Cor$., as administrator o# the #und, shall create a %$ecial 2rust 2rust und which shall "e dis"ursed only #or the $ur$oses s$eci7ed herein in an o$en and trans$arent manner. ll amount collected #or the universal charge shall "e distri"uted to the res$ective "ene7ciaries "ene7ciaries within a reasona"le $eriod to "e $rovided "y the ERC. Petitioners su"mit that the assailed $rovision o# law and its !RR which sought to im$lement the same are unconstitutional on the ground that the universal charge $rovided #or under %ec. &' o# the EP!R and sought to "e im$lemented under %ec. -, Rule *1 o# the !RR o# the said law is a ta8 which is to "e collected #rom all electric end9users and sel#9generating entities. 2he $ower to ta8 is strictly a legislative #unction and as such, the delegation o# said $ower to any e8ecutive or administrative agency lie the ERC is unconstit unconstitution utional, al, giving giving the same unlimite unlimited d authority authority. 2he assailed assailed $rovisio $rovision n clearly clearly $rovides $rovides that the 0niversal Charge is to "e determined, 78ed and a$$roved "y the ERC, hence leaving to the latter com$lete discretionary legislative authority. $SSUE 5hether or not there is undue delegation o# legislative $ower to ta8 on the $art o# the ERC UL$)G No. !# generation o# revenue is the $rimary $ur$ose and regulation is merely incidental, the im$osition is a ta8< "ut i# regulation is the $rimary $ur$ose, the #act that revenue is incidentally raised does not mae the im$osition a ta8. !n e8acting the assailed 0niversal Charge through %ec. &' o# the EP!R, the %tateFs $olice $ower, $articularly its regulatory dimension, is invoed. %uch can "e deduced #rom %ec. &' which enumerates enumerates the $ur$oses #or which the 0niversal Charge Charge is im$osed and which can "e am$ly discerned as regulatory in character. rom the eclaration $# Policy o# EP!R (%ection -), it can "e gleaned that the assailed 0niversal Charge is not a ta8, "ut an e8action in the e8ercise e8ercise o# the %tateFs $olice $ower. Pu"lic wel#are is surely $romoted. =oreover, it is a well9esta"lished doctrine that the ta8ing $ower may "e used as an im$lement o# $olice $ower.
2he $rinci$le o# se$aration o# $owers $owers ordains that each o# the three "ranches o# government government has e8clusive e8clusive cogni@ance o# and is su$reme in matters #alling within its own constitutionally allocated s$here. logical corollary to the doctrine o# se$aration o# $owers is the $rinci$le o# non9delegation non9delegation o# $owers, as e8$ressed e8$ressed in the Datin ma8im $otestas delegata non delegari $otest (what has "een delegated cannot "e delegated). 2his is "ased on the ethical $rinci$le that such delegated $ower constitutes not only a right "ut a duty to "e $er#ormed "y the delegate through the instrumentality o# his own Hudgment and not through the intervening mind o# another. !n the #ace #ace o# the incre increasi asing ng com$le com$le8it 8ity y o# moder modern n li#e, li#e, deleg delegati ation on o# legis legislat lative ive $ower $ower to variou various s s$eciali@ed administrative agencies is allowed as an e8ce$tion to this $rinci$le. Given the volume and variety o# interactions in todayFs society, it is dou"t#ul i# the legislature can $romulgate laws that will deal
ade;uately with and res$ond res$ond $rom$tly to the minutiae minutiae o# everyday li#e. Ience, the need need to delegate to administrative "odies 9 the $rinci$al agencies tased to e8ecute laws in their s$eciali@ed 7elds 9 the authority to $romulgate rules and regulations to im$lement a given statute and e6ectuate its $olicies. ll that is re;uired #or the valid e8ercise o# this $ower o# su"ordinate legislation is that the regulation "e germane to the o"Hects and $ur$oses o# the law and that the regulation "e not in contradiction to, "ut in con#ormit con#ormity y with, the standards standards $rescri"ed $rescri"ed "y the law. 2hese re;uire re;uirements ments are denomina denominated ted as the com$leteness test and the suJcient standard test. 0nder the 7rst test, the law must "e com$lete in all its terms and conditions when it leaves the legislature such that when it reaches the delegate, the only thing he will have to do is to en#orce it. 2he second test mandates ade;uate guidelines or limitations in the law to determine the "oundaries o# the delegateFs authority and $revent the delegation #rom running riot. 2he Court 7nds that the EP!R, read and a$$reciated in its entirety, in relation to %ec. &' thereo#, is com$lete in all its essential terms and conditions, and that it contains suJcient standards. lthough %ec. &' o# the EP!R merely $rovides that within one (*) year #rom the e6ectivity thereo#, a 0niversal Charge to "e determined, 78ed and a$$roved "y the ERC, shall "e im$osed on all electricity end9 users,/ and there#ore, does not state the s$eci7c amount to "e $aid as 0niversal Charge, the amount nevertheless is made certain "y the legislative $arameters $rovided in the law itsel#. 2hus, the law is com$lete and $asses the 7rst test #or valid delegation o# legislative $ower. A'$! A'$! Doctrin Doctrine e of non-del non-delegat egation ion not absolute absolute:: Requisi Requisites tes for Delegati Delegation. on. - The requisit requisites es for such delegation are: (a) the completeness of the statute making the delegation; and (b) the presence of sucient standard. ---
