Be it enacted by the National Assembly of the Philippines:

SECTION 1. Section twenty-two of Act Numbered Twenty-one hundred and fifty-two is amended so as to read as follows:

''SEC. 22. The appropriator of water for power purposes for a small development shall pay to the Commonwealth of the Philippines an annual rental of twenty-five centavos Philippine currency per horsepower for the first ten years, beginning on the first day of January after the plant is ready for operation. After this period, the rental shall become one peso Philippine currency per horsepower per year.

"The development of less than thirty horsepower shall be exempt from the rental provided in this section.

"The appropriator of water for power purposes for a large development shall pay to the Commonwealth of the Philippines an annual rental of fifty centavos per horse power for the first ten years, beginning on the first day of January after the plant is ready for operation. At the end of the first ten years and of each ten-year period thereafter the Secretary of Public Works and Communications shall determine the rate of rental which shall be charged for the succeeding ten years: Provided, That in no case shall the rental rate be less than one peso nor more than two pesos per horsepower per year.

"The amount of power upon which rental shall be charged shall be determined from the name plate rating reduced to horsepower for each waterwheel installed, as given in the manufacturer's specifications or certification which for the purpose of records of the Director of Public Works shall be furnished by the applicant before the first day of January after the plant is ready for operation: Provided, however, That in the absence of such data on the waterwheel, the rating on each of the generators installed should prevail and the computation of the amount of power developed, in either case, should be as follows: KV.A. X 1.2 = Horsepower. (KV.A. = kilovolt ampere); And provided, further, That in the absence of either such data, the Director of Public Works shall conduct the necessary and measurements to determine the maximum output, in horsepower, of the waterwheels installed for the plant.”

SEC. 2. This Act shall take effect upon its approval.

Approved, June 3, 1938.