FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
SENATE 
351 Ll 
S. B. No. ---=-=-=,-,U 
pk. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2 Section 16 provides: 
The State shall protect and advance the right of the people to a 
balanced and healthful ecology in accord with the rhythm and harmony 
of nature. 
In a study conducted by the US Congress, it was found that: 
1. Homes and commercial or industrial buildings in the United States consume 
significant quantities of energy, including energy for electriQity and heating, the 
generation or combustion of which creates significant quantities of greenhouse gas 
emissions; 
2. In most cases, energy efficiency is the most cost-effective and rapidly deployable 
strategy for reducing greenhouse gas emissions, energy demand, and the need for 
long-distance transmission of energy; 
3. on-site renewable energy generation reduces greenhouse gas emissions, demand on 
the electricity transmission grid, and the need for long-distance transmission 
of energy; 
4. many energy efficiency measures and on-site renewable energy generation systems 
produce a net cost savings over the course of the useful life of the measures and 
systems, and often over a shorter time frame, but the initial expense required to 
purchase and install the measures and systems is often a significant barrier to 
widespread investment in the measures and systems; 
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5. financial products, financing programs, and other programs that reduce or eliminate 
the need for the initial expense described in paragraph (4) can permit building owners 
to invest in measures and systems that reduce total energy costs and realize net cost 
savings at the time of the installation of the measures and systems, defer capital 
expenditure, and enhance the value, comfort, and sustainability of the property of the 
owners. 
The purpose ofthis Act is to establish a Green Energy for Homes and Buildings Program. 
Inspired by a similar proposal in the United States,' the Program is designed to encourage 
widespread deployment of energy efficiency and on-site renewable energy technologies in 
homes and other buildings throughout the Philippines by encouraging the widespread availability 
of financial products and programs with attractive rates and terms that significantly reduce or 
eliminate upfront expenses thereby allowing building owners to invest in energy efficiency 
measures and on-site renewable energy systems. 
Green energy is thought of in the context of el~ctricity generation, and is often used 
interchangeably with the terms renewable energy and alternative energy. Green energy sources 
are called such because they are perceived to have lower carbon emissions and create 
less pollution. 
Consumers, businesses, and organizations should be encouraged to purchase green 
energy to support further development, help reduce the environmental impacts of conventional 
electricity generation, and increase their nation's energy independence. 
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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
l) 
SENA1fsHi 
S. B. No. __ 
' __ _ 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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ESTABLISHING A GREEN ENERGY FOR HOMES AND BUILDINGS PROGRAM 
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IN THE DEPARTMENT OF ENERGY TO PROVIDE FINANCIAL ASSISTANCE TO 
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PROMOTE RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL SCALE ENERGY 
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EFFICIENCY AND ON-SITE RENEWABLE TECHNOLOGIES. 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the This Act may be cited as the 
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"Green Energy for Homes and Buildings Act of2009". 
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SECTION 2. Implementing Agency. -
The Department of Energy shall implement the 
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provisions of this Act. 
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SECTION 3. Definitions. 
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A. 
GREEN ENERGY -
refers to sources of energy that are natural; 
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considered to be environmentally friendly and non-polluting. These processes include 
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but are not limited to anaerobic digestion, geothermal power, wind power, small-scale 
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hydropower, solar energy, biomass power, tidal power, and wave power. 
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B. 
COST - means the monetary value of expenditures for supplies, services, 
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labour, products, equipment and other items purchased for use by a business or other 
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accounting entity. 
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C. DIRECT LOAN - means a loan by a lender to a customer without the use ofa 
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third party. 
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D. LOAN GUARANTEE - means a promise by a government to assume a private 
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debt obligation if the borrower defaults. 


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E. PROGRAM- means the Green Energy for Homes and Buildings Program 
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established by section 6. 
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F. SECRETARY- means the Secretary of Energy . 
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G. SECURITY- means shares, participation or interests in a corporation or in a 
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commercial enterprise or profit-making venture and evidenced by a certificate, contract, 
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instrument, whether written or electronic in character. It includes: 
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(a) Shares of stock, bonds, debentures, notes, evidence of indebtedness, asset-backed 
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securities; 
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(b) Investment contracts, certificates of interest or participation III a profit sharing 
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agreement, certificates of deposit for a future subscription; 
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(c) Fractional undivided interests in oil, gas or other mineral rights; 
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(d) Derivatives like options and warrants; 
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(e) Certificates of assignments, certificates of participation, trust certificates, voting trust 
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certificates or similar instruments; 
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(f) Proprietary or non proprietary membership certificates incorporations; and 
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(g) Other instruments as may in the future be determined by the Securities and Exchange 
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Commission. 
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SECTION 4. Green Energy lor Homes and Buildings Goals.-
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A. Development of targets and goals 
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1. 
The Secretary shall develop and publish for review and comment in 
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the Official Gazette short, medium, and long-term goals (including numerical 
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performance targets at appropriate intervals to measure progress toward those 
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goals) for--
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(a) a minimum number of homes to be retrofitted through energy 
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efficiency measures or to have on-site renewable energy systems 
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added; 
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(b) a minimum number of other buildings, by type, to be retrofitted 
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through energy efficiency measures or to have on-site renewable 
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energy systems added; and 
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(c) the number of on-site solar energy, 
wi~d energy and 
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geothermal heat pump systems to be installed; and 
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2. as a result of those retrofits, additions, and installations--
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(a) the quantity by which use of grid-supplied electricity, natural 
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gas, homes heating oil, and other fuels will be reduced; 
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(b) the quantity by which total fossil fuel dependence in the 
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buildings sector will be reduced; 
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(c) the quantity by which greenhouse gases are emitted will be 
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reduced; 
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(d) the number of jobs that will be created; and 
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(e) the estimated total energy cost savings for building owners. 
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B. The Secretary may rely on reasonable estimates made by originators of 
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financial products or sponsors of financing programs for tracking progress toward 
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meeting the goals established under this section instead of requiring building owners to 
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monitor and report on the progress. 
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SECTION 5. Green Energy for Homes and BUildings Program 
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A. Establishment- There is established in the Department of Energy a program to 
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be known as the "Green Energy for Homes and Buildings Program". 
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B. Eligibility Criteria-
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1. IN GENERAL- In administering the Program, the Secretary shall 
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establish eligibility criteria for applicants for financial assistance under subsection 
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(C) who can offer financial products and programs consistent with the purposes of 
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this Act. 
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2. CRITERIA- Criteria for applicants shall--
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(a) take into account--
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(i) 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); 
(ii) the ability of the applicant to successfully execute the 
proposed program and maintain the performance of the proposed 
projects and investments; 
(iii) financial criteria, as applicable, including the ability of 
the applicant to raise private capital or other sources of funds for 
the proposed program; 
(iv) criteria that enable the Secretary to determine sound 
program design, including -
(I) an assurance of credible energy efficiency or 
renewable energy generation performance; and 
(II) financial product or program design that 
effectively reduces barriers posed by traditional 
financing programs 
(b) encourage -
(i) use of technologies that are either well-established or 
new, but demonstrated to be reliable; 
(ii) 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 to 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; 
b. multifamily apartment building owners; 
c. condominium owners associations; 
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d. commercial building owners, including multi-tenant commercial 
properties; and 
e. industrial building owners. 
C. Financial Assistance-
1. In general - For applicants determined to be eligible under criteria established 
under subsection (B), the Secretary may provide financial assistance in the form 
of direct loans, letters of credit, loan guarantees, insurance products, other credit 
enhancements or debt instruments (including securitization or indirect credit 
support), or other financial products to promote the widespread deployment of, 
and mobilize private sector support' of credit and investment institutions 
for, energy efficiency measures and on-site renewable energy generation systems 
in buildings. 
2. To the maximum extent practicable and consistent with sound business 
practices, the Secretary shall seek to expedite reviews of applications for credit 
support under this Act in order to communicate to applicants in a timely manner 
the likelihood of support so that the applicants can seek private capital in order to 
receive final approval. In carrying this out, the Secretary shall consider using 
clear guidelines that communicate to applicants what level of performance on 
eligibility criteria will ensure approval for credit support or resale. 
SECTION 5. General Accountability for the Program. -
A. 
Periodic Reports - Not later than one (l) year after the commencement of 
operation of the Program and at least biannually thereafter, the 
Secretary shall submit to the Committee on Energy of the Senate and 
the Committee on Energy of the House of Representatives a report that 
includes a description of the Program in meeting the purpose and goals 
established by or pursuant to this Act. 
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B. 
Audits by the Commission on Audit - The programs, activities, receipts, 
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expenditures, and financial transactions of the Program shall be subject 
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to audit by the Commission on Audit. 
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SECTION 6. Appropriations. - To carry out the provisions of this Act, an amount of 
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Fifty million pesos (P50,OOO,OOO.OO) is hereby authorized to be appropriated from the National 
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Treasury. Thereafter, the amount necessary for the continuous operation of the program shall be 
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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 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
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with the provision of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
lacs 
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