FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
2896

House Bill No.

Introduced by Representative Susan A. Yap

EXPLANATORY NOTE

No less than the Constitution recognizes every Filipino’s fundamental legal
right to a balanced and healthful ecology in accordance with the rhythm and harmony
of nature,

Likewise, in the landmark case of Oposa 1 Favtoran, the Supreme Court recognized
the concept of intergenerational responsibility in upholding the cause of action of minors
who were filing a class suit which sought to protect the right of their generation and of
generations yet unborn to the same right co a balanced and healthful ecology. The Supreme
Court stressed further that every generation has a responsibility to the next to preserve the
thythm and harmony of nature for the full enjoyment of a balanced and healthful ecology.
‘The assertion of such right includes the obligation to protect the same for generations to
come.

A glaring example of a disruption of the rhythm and harmony of nature is
global warming with effects that include an increase in sea-level, temperature and
rainfall. This translates to unpredictable weather changes, an increase in number of
storms and an extremely humid environment. Global warming is caused by the
continued and increasing emission of greenhouse gases in our atmosphere. At present,
global warming is no longer just a threat, it has become a reality that affects the present
and will affect the future generations.

Worldwide, the problem of global warming caused by greenhouse gas emissions is
largely recognized and is being addressed through the Kyoto Protocol of the United Nations
Framework Convention on Climate Change (UNFCCC), aimed at combating global
warming. ‘The UNFCCC is an international environmental treaty with the goal of achieving
"stabilization of greenhouse gas concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate system."

It was first adopted on 11 December 1997 in Japan and entered into force on
16 February 2005. As of November 2009, 187 countries have signed and ratified the
protocol. The Philippines is one of those countries.

Locally, the problem of global warming was sought to be addressed by the
passage of Republic Act No. 9729 otherwise known as the Climate Change Act in 2009.
It provided for the creation of a Climate Change Commission whose duties and powers
include the “formulation of strategies on mitigating greenhouse gases and other
anthropogenic causes of climate change”.

Greenhouse gases are emitted when fossil fuels, coal, oil, and natural gas are
burned. There is a need to shift to green energy which refers to sources of energy that
are friendlier to the environment. Examples of renewable and alternative energy are


geothermal power, solar power and wind energy. However, the initial costs of shifting
to green energy are not always cheap. It is an investment in itself.

Hence, there is a need for an incentive for homes and establishments to make
the big shift. This requires more than just appeals to one’s sense of responsibility in
cating for the environment. There is a need to cushion the impact of the initial
expenses which almost always discourage those who might want to consider green
energy

In view of the foregoing, the passage of this bill is earnestly sought.



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FIFI PH CONGRES: )
OF THE REPUBLIC OF THE PHILIPPINES )
Boru Regine Seoscom )

HOUSE OF REPRESENTATIVES

2896

House Bill No.

Introduced by Representative Susan A. Yap

AN ACT
ESTABLISHING A GREEN ENERGY FOR HOMES AND BUILDINGS
PROGRAM IN THE DEPARTMENT OF ENERGY TO PROVIDE
FINANCIAL ASSISTANCE TO PROMOTE RESIDENTIAL, COMMERCIAL,
AND INDUSTRIAL ALE ENERGY EFFICIENCY AND ON-SITE
RENEWABLE TECHNOLOGIES.

Be ewacted by the Senate und epresentatives of the Philippines im Congress assembled:

SECTION 1. Short Tith. “Unis Act shall be known as the Green Energy for Homes
and Buildings Act of 2010

SECTION 2. Definition

A. GREEN ENERGY - tefers to «
be unvironmentally fendly and non-pollu

es of energy that are natural; considered 10
These processes include, bur are not limited
wind power, sinail scale hydropower, solar
dal power, and wave power.

to, anaerobic ian, geothermal pow

energy, biomass power,

B. COST - means the monetary value of expenditures for supplies, services, labour:
products, equipment and other items purchased for use by 4 business or other accounting
entity

©, DIRECT LOAN - mm

third party

eans a loan by a lender to a customer without the use of a

1D, LOAN GUARANTEE - im
debt obligation if the borrower defaults

HENLE TO assume a privare

FB. PROGRAM. means the Green Faery: for Homes and Buildings Program
plished by Section 6,

F SECRETARY the Secretary of Energy

G, SECURTTY- means shares, parucipation or interests in a corporation of in a
commercial enterprise or profit-making v
instrument, whether written or electronic it

ure and evidenced by a certificate, contract,
racter. It includes:

(ay'Sh:

see

nes, evidence of indebtedness, asset-hacked

(B) Investment contracts, ce

pacion in a profit sharing
agreement, cetuficates af dep
{¢) Fractional undivided interes:



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(@ Derivatives like options and warrants;

(6) Centificates of assignments, certificates of participation, wust certificates, voting
trust certificates or similar instruments;

(® Proprietary or non proprietary membership certificates incorporations; and

(® Other instruments as may in the future be determined by the Securities and
Exchange Commission.

SECTION 3. Gren Energy for Homes and Buildings Goals,
A. Development of targets and goals

1. The Secretary shall develop and publish for review and comment in the Official
Gazette or in a national newspaper of general circulation short, medium, and long-term goals
(including numerical performance targets at appropriate intervals to measure progress
toward those goals) for—
(a) a minimum number of homes to be retrofitted through energy efficiency
measures or to have on-site renewable energy systems added;
(b) a minimum number of other buildings, by type, to be retrofitted through energy
efficiency measures or to have on-site renewable energy systems added; and
(© the number of on-site solar energy, wind energy and geothermal heat pump
systems to be installed; and

2. as a result of those retrofits, additions, and installations--

(a) the quantity by which use of.grid-supplied electricity, natural gas, homes heating
il, and other fuels will be reduced;

(b) the quantity by which total fossil fuel dependence in the buildings sector will be
seduced:

(6) the quantity by which greenhouse gases are emitted will be reduced;

@) the number of jobs that will be created; and

(©) the esumated total energy cost savings for building owners.

B. The Secretary may rely on reasonable estimates made by originators of financial
products ot sponsors of financing programs for tracking progress toward meeting the goals
¢stablished under this section mstead of requiring building owners to monitor and report on
the progress

SECTION 4. Gren Energy for Homes and Buildings Program.

A. Establishment- There is established in the Department of Energy a program to be
known as the "Green Energy for Homes and Buildings Program".

B. Eligibility Criteria ~
i, IN GENERAL- In administering the Program, the Secretary shall establish

eligibility ctiterta for applicants for financial assistance under subsection (C) who can offer
financial products and programs consistent with the purposes of this Act.

2. CRITERIA. Criteria for applicants shall
{@) take into account—

@) the number and type of buildings that can be served by the applicant, the size of
the potential market, and the scope of the program (in terms of measures or
technologies to be used);

i) the ability of the applicant co successfully execute the proposed program and
maintain the performance of the proposed projects and investments;


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(di) financial criteria, as applicable, including the ability of the applicant to raise
private capital or other sources of funds for the prdposed program;
(ay) criteria that enable the Secretary to determine sound program desiga, including —

(D an assurance of credible energy efficiency or renewable energy generation
performance; and

(I) financial product or program design that effectively reduces. barriers
posed by traditional financing programs

() encourage —

() vse of technologies that aze either well-established or new, but demonstrated to
be reliable; -

(i) technical assistance in selecting and working with vendors to provide energy
efficiency measures or on-site renewable energy generation systems;

3. Diverse Portfolio- In establishing criteria and selecting applicants io receive
financial assistance under subsection (C), to the maximum extent practicable, the Secretary
shall select a portfolio‘of investments that reaches a diversity of building owners, including —

a: individual homeowners;

be multifamily apartment building owners;

c. condominium owners associations;

d. commercial building owners, including multi-tenant commercial properties; and

¢. industrial building owners

C, Financial Assistance-

1. In general - For applicants determined co be eligible under criteria established
under subsection (B), dhe! Secretary may provide financial assistance in the form of direct
loans, letters of eredit, Joan guarantees, insurance products, other credit enhancements or
debe instruments (inglading securitization or indirect credit support), ot other financial
products to promote tlie widespread deployment of, and mobilize private sector support of
credit and investment institutions for, enesgy efficiency measures and On-site renewable
energy generation systems:in baildings.

2. To the maximum extent practicable und consistent with sound business. practices,
the Secretary shall seek to expedite reviews of applications for credit support under this Act
in order to, communicate t¢ applicants in a dmely manner the likelihood of support so that
the applicants can seek private capital in order to receive final approval. In cartying this out,
the Secretary shall consider using clear yuidelines that communicate to applicants what level
of performiance on eligibility criteria will ensure approval for credit support or resale.

SECTION 5. General Accountability forthe Program.

A. Periodic Reports - Not later than one (1) year after the commencenient of
operation of the Progtam and at least biannually thereafter, the Secretary shall subinit to the
Committee on Energy of the Senate and the Committee on Energy of the House of
Representatives a report that includes 2 description of the Program in meeting the purpose
and goals‘established by or pursuant to this Act.

B. Audits by the Commission on Audit - The programs, activities; receipts,
expenditures, and financial transactions of the Program shall be subject to audit. by the
Commission on Audit.

SECTION 6. Appropriations. - To carry out the provisions of this Act, an amount of
Fifty million pesos (P50,000,000.00) is hereby authorized to be appropriated from the
Natonal Treasury. Thereafter, the amount necessary for the continuous operation-of the
program shall be included in the annual appropriations of the Department of Energy


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SECTION 7. Separability Clause. - If any provision’ or part:hereof, is held invalid or
unconstitational, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.

SECTION 8. Repealing Clanse. - Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to ot is
inconsistent with the provision of this Act is hereby repealed, modified, or amended
accordingly.

SECTION 9. Effetinity Clause. ~ This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,