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Republic of the Philippines

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HOUSE OF REPRESENTATIVES r=
Quezon City INDEX
EIGHTEENTH CONGRESS

Second Regular Session

HOUSE BILL NO. 7317

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RECEIVED
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Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

This bill seeks to regulate and promote the use of electric and hybrid vehicles
to provide for a sustainable and environment-friendly transport system.

Section 16, Article II of the Constitution provides that “ The State shall protect
and advance the right of the people to a balanced and healthful ecology in accord
with the rhythm and harmony in nature.”

Acute respiratory infection, pneumonia, and bronchitis are the primary causes
of morbidity in the country that are attributable to air pollution. Based on the 2018
National Emissions Inventory conducted by the Environment and Management
Bureau of the Department of Environment and Natural Resources, 73% of air
pollutants come from mobile sources such as cars, motorcycles, trucks, and buses.
These means of transportation use fossil fuels that greatly contribute to carbon
dioxide emission which is one of the major causes of global warming and climate
change. When lockdown was declared in Metro Manila in March 2020 due to the
coronavirus disease (COVID-19) pandemic, air pollution was considerably reduced.
The pandemic highlighted the need to stay healthy and safe by veering away from
air pollutants and fine particulate matters that have been linked to cardiovascular
and respiratory diseases.

This proposed measure aims to safeguard the welfare and health of the people
by improving the air quality through the reduction of carbon dioxide emissions. This
bill promotes the use of electric and hybrid vehicles to lessen the number of vehicles
operating on fossil fuels. It also provides policy support for manufacturers and
importers and non-fiscal incentives that will make the acquisition and conversion to


electric and hybrid vehicles appealing to consumers. This will undeniably boost the
demand and help influence consumers to choose these types of vehicles.

This new industry of electric and hybrid vehicles will significantly contribute to
the investment generation, job creation, poverty reduction, and climate change
mitigation initiatives of the country.

In view of the foregoing, approval of this bill is earnestly recommended.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

7317
HOUSE BILL NO.

Introduced by Representative Sharon S. Garin

AN ACT
REGULATING AND PROMOTING THE USE OF ELECTRIC AND HYBRID
VEHICLES FOR A SUSTAINABLE AND ENVIRONMENT-FRIENDLY
TRANSPORT SYSTEM

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. —This Act shall be known as the “Electric and Hybrid
Vehicles Act."

SEC. 2. Declaration of Policy. — It is the policy of the State to protect the
people and provide them a balanced and healthy environment. The State also
recognizes the need to improve air quality through the reduction of carbon dioxide
emissions from vehicles operating on fossil fuels. Towards this end, the government
shall regulate and promote the use of electric and hybrid vehicles that provide
sustainable and environment-friendly transport system.

SEC. 3. Coverage. - This Act shall cover the operation of electric and hybrid

vehicles industry.


19 For purposes of this Act, electric vehicles refer to vehicles that operate from
20 electricity supplied by the electric grid and Aybrid vehicles refer to vehicles that
21 operate through a combination of at least one electric motor with a gasoline engine.
2 SEC. 4. Inter-Agency Task Force. - The Department of Trade and Industry
23 (DTI) shall, in coordination with other government agencies, create an inter-agency
24 task force for the promotion of electric and hybrid vehicles under the Industry
25 Development Council to expedite identification, prioritization, and resolution of issues
26 affecting the electric and hybrid vehicle industry by formulating a shared
27 implementation plan and monitoring system.

28 SEC. 5. Composition. - The inter-agency task force is composed of the

29 following:

30 a) Secretary of Trade and Industry, as chairperson;
31 b) Secretary of Transportation, as vice-chairperson;

32 ° Secretary of Energy, as vice-chairperson;

33 a) Secretary of Finance;

34 e) Secretary of the Interior and Local Government;

35 f) Secretary of Science and Technology; and

36 9) Three (3) representatives from the electric and hybrid vehicle industry;

37 as members.
38 Representatives from other agencies of the government may be invited as
39 resource persons during the meetings of the task force.

40 SEC. 6. Duties and Responsibilities. - The task force shall have the

41 following duties and responsibilities:


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a) Formulate modalities for easier access to financing capital
expenditures, operating expenses, and retail operations of electric and hybrid
vehicles and charging station manufacturers and assemblers;

b) Develop and implement standards in line with or according to the
international standards to govern the operations of electric and hybrid vehicles
including batteries and charging infrastructures;

° Review and recommend policy to encourage and increase the public
transport applications for electric and hybrid vehicles nationwide, including their use
for fleet operations in the national government agencies and local government units
(LGUs);

d) Coordinate with LGUs in identifying and allocating land and property
within their jurisdiction for use as public charging stations for electric and hybrid
vehicles;

e) Review and recommend appropriate classification of electric and hybrid
vehicles and the corresponding parameters for motor vehicle inspection system
approval;

f) Coordinate with the electric power industry stakeholders, particularly,
the Energy Regulatory Commission and electric distribution utilities and cooperatives,
in the preparation of their electric systems and network to accommodate the
connection of electric and hybrid vehicles charging equipment and stations;

9) Undertake information and education campaign on the economic, social

and environmental benefits on the use of electric and hybrid vehicles; and


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h) Monitor resolution of issues affecting the electric and hybrid vehicle
sector and undertake actions as may be determined by the inter-agency task force.

SEC. 7. Incentives. - The manufacturer or assembler of completely knocked-
down parts of electric and hybrid vehicles including charging stations shall be exempt
from the payment of excise taxes and duties for nine (9) years from the effectivity of
this Act.

The imposition of value-added tax for the purchase and importation of capital
equipment, spare parts, components used in the manufacture or assembly of electric
and hybrid vehicles including charging stations shalll be suspended for nine (9) years
from the effectivity of this Act.

SEC. 8. Incentives for Importers. — Importers of completely built units of
electric and hybrid vehicles shall be exempted from the payment of excise taxes and
duties for three (3) years from the effectivity of this Act.

SEC. 9. Exemption from the Payment of Motor Vehicle User's Charge.
— Within nine (9) years from the effectivity of this Act, users of electric and hybrid
vehicles shall be exempt from the payment of the motor vehicle user's charge (MVUC)
imposed by the Land Transportation Office (LTO) under Republic Act No. 8794, as
amended, entitled “An Act Imposing a Motor Vehicle User's Charge on Owners of All
Types of Motor Vehicles and For Other Purposes.”

SEC. 10. Incentives for Users of Electric Vehicles and Charging
Stations. — a) Priority in Registration and Issuance of Plate Number. ~ Registration
and renewal of registration of electric and hybrid vehicles shall be prioritized by the

LTO for nine (9) years from the effectivity of this Act. A special type of vehicle plate


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to be prescribed by the LTO shall be exclusively issued to all electric and hybrid
vehicles upon registration.

b) Priority in Franchise Application. - Public utility vehicle operators
exclusively utilizing electric and hybrid vehicles shall be granted priority by the Land
Transportation Franchising and Regulatory Board in the approval of applications for
franchise to operate, including its renewal, for nine (9) years from the effectivity of
this Act.

©) Exemption from the Unified Vehicular Reduction Program or Number-
Coding Scheme. - A\l electric and hybrid vehicles shall, for nine (9) years from the
effectivity of this Act, be exempted from the mandatory Unified Vehicular Volume
Reduction Program or number-coding scheme being implemented by the Metro
Manila Development Authority and other LGUs concerned.

da) Electric and Hybrid Vehicle Free Parking Spaces. - In addition to the
existing requirements provided by law on the issuance of building permits, business
and commercial establishments to be constructed after the effectivity of this Act are
mandated to provide parking spaces free of charge for all electric and hybrid vehicles.
No building permit shall be issued for the construction of business and commercial
establishments with parking spaces unless the owner provides and submits an
affidavit that free parking spaces are designated for electric and hybrid vehicles.

e) Land Allocation for Electric and Hybrid Vehicle Charging
Stations. — \GUs shall allocate land and lot space for the construction of charging
stations to encourage wider deployment of electric and hybrid vehicles in their areas

of jurisdiction,


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SEC. 11. Registration, Implementation and Monitoring. - The
Department of Finance and Department of Trade and Industry shall be responsible
for the administration and implementation of the incentives granted under this Act.

Manufacturers, assemblers, converters and importers of electric and hybrid
vehicles shall register with the Department of Finance in order to avail of the
incentives provided under this Act. The Department of Finance and the Department
of Trade and Industry shall meet regularly to monitor and review the implementation
of the incentives provided herein.

SEC. 12. Administrative Support. - The Department of Trade and Industry
shall provide overall administrative support to the inter-agency task force by
appropriating the corresponding budget needed for the effective implementation of
its mandate.

SEC. 13. Implementing Rules and Regulations. — Within thirty (30) days
from the approval of this Act, the Secretary of Trade and Industry shall, in
coordination with the Secretary of Finance, issue the necessary rules and regulations
for the effective implementation of this Act.

SEC. 14. Separability Clause. - If other parts or provisions of this Act are
declared unconstitutional or invalid, other parts of provisions hereof not affected
thereby shall continue to be in full force and effect.

SEC. 15. Repealing Clause. - All laws, decrees, executive orders or parts
thereof inconsistent with the provisions of this Act are hereby repealed or modified

accordingly.


132 SEC. 16. E&ffectivity. - This Act shall take effect fifteen (15) days after its
133 publication in the Official Gazette or in a newspaper of general circulation.

134 Approved,