ts
SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
'■{.T !: ■
.. I ' l l i f C '  1 • 
■ I . "  i'
*17 
AUG- 2  
P 4 : 1 0
S.B. No.
SENATE
1540
Introduced by Senator Francis N. Pangilinan
AN ACT PROMOTING ENVIRONMENTALLY SUSTAINABLE TRANSPORT BY 
PROVIDING INCENTIVES FOR THE MANUFACTURE, ASSEMBLY, CONVERSION 
AND IMPORTATION OF ELECTRIC AND HYBRID VEHICLES INCLUDING 
CHARGING STATIONS AND FOR OTHER PURPOSES
EXPLANATORY NOTE
In March 2017, the Philippines ratified the historic Paris Agreement on Climate 
Change, which seeks to reduce carbon emissions that have long been associated to the 
occurrence of natural disasters and extreme weather conditions. The country committed 
to reduce carbon emissions by 70 percent by 2030. One way to achieve this is to 
promote sustainable, energy-efficient, and environment-friendly alternatives to the 
current modes of transportation which are among the largest contributors to carbon 
dioxide emissions.
Worldwide, the transportation sector accounts for 20 percent of total carbon 
dioxide emissions1 and 14 percent of greenhouse gas emissions.2 In the Philippines, the 
sector accounts for 36.1 percent of the total carbon dioxide emissions from fuel 
combustion.3
A study conducted by the Massachusetts Institute of Technology (MIT) found that 
wholesale replacement of conventional vehicles with electric ones could play a 
significant role to mitigate climate change. Even while considering the emissions from 
power plants that provide electricity to charge electric vehicles (EVs), the switch to EVs 
would lead to an approximately 30 percent reduction in the emissions from 
transportation. If power plants decarbonize over time, more significant emission cuts 
would be realized.4
Rappler. “Creating sustainable transport systems; PH’s progress so far." Published on 28 March 
2016. 
Available 
at 
http://wvyw.rappler.com/science-nature/environment/127Q75-philiPDines- 
sustainable-transportation-strateav. Last accessed on 24 July 2017.
The New York Times. “A Brighter Future for Electric Cars and the Planet.” Published on 18 July 2017. 
Available at https://www.nvtimes.com/2017/07/18/oDinion/a-briahter-future-for-electric-cars-and-the- 
planet.html. Last accessed on 24 July 2017.
Op. cit. Rappler
Massachusetts Institute of Technology. “Can Today’s EVs make a dent in climate change?” 
Published on 15 August 2016. Available at http://news.mit.edu/2016/electric-vehicles-make-dent- 
climate-chanqe-0815. Last accessed on 24 July 2017.
1


According to the International Energy Agency, there were two million electric 
vehicles in the world’s roads in 2016, which was an increase by 60 percent from 2015.5 
In the Philippines, there is an increasing support for the manufacture of electric vehicles 
with major cities in Metro Manila starting to use electric jeeps and electric tricycles to 
provide transportation to tourists and ultimately, to reduce carbon emissions.
The Department of Energy estimates that replacing regular tricycles with 100,000 
e-tricycles could reduce gasoline consumption by 561,000 barrels a year or 260,000 
tons of carbon dioxide emissions. Income of tricycle drivers could also be increased by 
30 percent due to increased passenger capacity and cheaper electric charging cost 
than fuel prices.6
Foregoing considered, it is imperative that the use of electric and hybrid vehicles 
be actively promoted across the country. Hence, this measure proposes to provide the 
following non-fiscal incentives including the creation of an Inter-Agency Task Force to 
resolve issues affecting the supply chain of the electric and hybrid vehicle sector; 
priority registration and issuance of plate number; priority franchise application; 
exemption from the Unified Vehicular Volume Reduction Program (U W R P ) or Number 
Coding Scheme; provision for free parking spaces in new establishments; and land 
allocation, zoning and utilization by Local Government Units (LGUs) for electric and 
hybrid vehicle charging stations.
The passage and enactment of this bill is earnestly sought.
FRAN
PANGILINAN
ator
6 Op. cit. NYT
6 Department of Trade and Indutry. E-Vehicles. Available at http://industrv.aov.Dh/industrv/e-vehicles/. 
Last accessed on 24 July 2017.


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
■ r<‘- 
ol :;.r i 
.ctur
'17 
AUG-2 P/l:lO
SENATE
S.B. No. 
154 0
HECLiVlUiii
Introduced by Senator Francis N. Pangilinan
AN ACT PROMOTING ENVIRONMENTALLY SUSTAINABLE TRANSPORT BY 
PROVIDING INCENTIVES FOR THE MANUFACTURE, ASSEMBLY, CONVERSION AND 
IMPORTATION OF ELECTRIC AND HYBRID VEHICLES INCLUDING CHARGING 
STATIONS AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Title. -  This Act shall be known as the “Electric and Hybrid Vehicles
2 
Including Charging Stations Promotions Act of 2017."
3 
SEC. 2. Declaration o f Policy. -  It is the policy of the State to safeguard life and
4 
environment by encouraging the use of alternative sources of energy for vehicles intended
5 
for public and private use. To protect the well-being and promote the economic condition of
6 
the people as well as to promote energy independence and security in the midst of
7 
development and innovation in technology, the following are hereby declared:
8 
A) It is the policy of the State to protect and advance the right of the people to a
9 
balanced and healthful ecology in accord with the rhythm and harmony in nature.
10 
The State shall recognize and address the detrimental effects on the environment,
11 
safeguard the welfare, and protect the health of the people by improving air quality
12 
and by reducing the impact of greenhouse gas effects emitted from man-made
13 
sources such as vehicles operating on fossil fuels.
14 
B) The State supports the need to promote the development of new technology to
15 
accelerate social progress and promote human development. The use of alternative
16 
sources of energy on vehicles intended for public and private use is encouraged to
17 
promote innovation, energy efficiency, energy security and conservation and to
18 
speed up the deployment of cleaner technology.
19 
C) The State recognizes the indispensable role of the private sector, encourages
20 
private enterprise, and provides incentives to needed investments. To accelerate
21 
economic growth and generate employment, the state shall provide incentives to
22 
private enterprises and individuals engaged in the manufacture, assembly,
23 
conversion, and importation of electric and hybrid vehicles including charging
24 
stations.


1 
SEC. 3. Definition of Terms. -  As used herein, the following shall mean:
2 
A) Electric Vehicle (EV) shall refer to any vehicle that uses electric motors solely for
3 
propulsion.
4 
B) Hybrid Vehicle (HV) shall refer to any vehicle that combines the technologies of
5 
using internal combustion engine (ICE) with a battery-powered electric motor to gain
6 
advantages of both propulsion systems.
7 
C) Manufacturer or Assembler shall mean any individual, partnership, corporation or
8 
other entity engaged in the manufacture, assembly and conversion of electric and
9 
hybrid vehicles incorporated, organized and existing under Philippine laws.
10 
D) Charging Station shall refer to the element in an infrastructure that supplies electric
11 
energy for the recharging of electric and hybrid vehicles.
12 
SEC. 4. Coverage. -  This Act shall cover electric and hybrid vehicles including charging
13 
stations but shall not include vehicles powered by gasoline, petroleum, bio-diesel and
14 
bioethanol.
15 
SEC. 5. Strengthening Public-Private Partnership for the Promotion of Electric
16 
Vehicles and Charging Stations. -  The Department of Trade and Industry (DTI) shall
17 
strengthen its coordination with other government agencies by constituting an Inter-Agency
18 
Task Force for the Promotion of Electric and Hybrid Vehicles Including Charging Stations
19 
under the Industry Development Council to expedite identification, prioritization, and
20 
resolution of issues affecting the entire supply chain of the electric and hybrid vehicle
21 
industry by formulating a shared implementation plan and monitoring system.
22 
SEC. 6. Composition o f the Inter-Agency Task Force. -  The Task Force shall be
23 
composed of the following members:
24 
(A) Secretary, Department of Trade and Industry -  Chairperson
25 
(B) Secretary, Department of Transportation -  Vice-Chairperson
26 
(C) Secretary, Department of Energy -  Vice-Chairperson
27 
(D) Secretary, Department of Finance -  Member
28 
(E) Secretary, Department of the Interior and Local Government -  Member
29 
(F) Secretary, Department of Science and Technology -  Member
30 
(G) Three (3) Representatives from the Electric and Hybrid Vehicle Industry
31 
Representatives from other agencies of the government may be invited as resource
32 
persons during the meetings of the Task Force,
33 
SEC. 7. Duties and Responsibilities o f the Task Force. -  The Task Force shall have
34 
the following duties and responsibilities:


1 
(1) Formulate modalities for easier access to financing capital expenditures, operating
2 
expenses and retail operations of electric and hybrid vehicle and charging station
3 
manufacturers and assemblers;
4 
(2) Develop and implement standards which are aligned with international standards to
5 
govern 
electric and hybrid vehicles including batteries and charging infrastructures;
6 
(3) Review and recommend policy to increase public transport applications for electric
7 
and hybrid vehicles nationwide including their use for fleet operations in national
8 
government agencies and local government units (LGUs);
9 
(4) Coordinate with LGUs in identifying and allocating land and property within their
10 
jurisdiction for use as public charging stations for electric and hybrid vehicles;
11 
(5) Review and recommend appropriate classification for electric and hybrid vehicles and
12 
the corresponding parameters for Motor Vehicle Inspection System (MVIS) approval;
13 
(6) Coordinate with the electric power industry stakeholders, particularly, the Energy
14 
Regulatory Commission (ERC) and electric distribution utilities and cooperatives, in
15 
the preparation of their electric systems and network to accommodate the connection
16 
of electric and hybrid vehicles charging equipment and stations;
17 
(7) Undertake Information and Education Campaign (lEC) on the economic, social and
18 
environmental benefits on the use of electric and hybrid vehicles; and
19 
(8) Monitor resolution of issues affecting the electric and hybrid vehicle sector and
20 
undertake actions as may be determined by the Inter-Agency Task Force.
21 
SEC. 8. Incentives for Manufacturers or Assemblers. -  The provision of any special
22 
or general law to the contrary notwithstanding, the manufacture or assembly of completely
23 
knocked-down (CKD) parts of electric and hybrid vehicles including charging stations shall
24 
be exempt from the payment of excise taxes and duties for nine (9) years from the
25 
effectivity of this Act.
26 
The imposition of Value Added Tax (VAT) for the purchase and importation of capital
27 
equipment, spare parts, components used in the manufacture or assembly of electric and
28 
hybrid vehicles including charging stations shall be suspended for nine (9) years from the
29 
effectivity of this Act.
30 
SEC. 9. Incentives for Importers. -  The Provision of any special or general law to the
31 
contrary notwithstanding, the importation of completely built units (CBUs) of electric and
32 
hybrid vehicles shall be exempted from the payment of excise taxes and duties for three (3)
33 
years from the effectivity of this Act.
34
35
36
37
38
SEC. 10. Exemption from the Payment o f Motor Vehicle User’s Charge (MVUC). -  
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, otherwise known as “Motor Vehicle User’s Charge (MVUC) Act” for nine (9) years 
from the effectivity of this Act.
39 
SEC. 11. Incentives for Users o f Electric Vehicles and Charging Stations. -
40
41
42
1. Priority in Registration and Issuance of Plate Number. -  Registration and renewal of 
registration of electric and hybrid vehicles shall be prioritized by the Land Transportation 
Office (LTO) for nine (9) years from the effectivity of this Act. A special type of vehicle plate


1 
to be prescribed by the LTO shall be exclusively issued to all electric and hybrid vehicles
2 
upon registration.
3 
2. Priority in Franchise Application. -  Public Utility Vehicle (PUV) operators exclusively
4 
utilizing electric and hybrid vehicles shall be granted priority by the Land Transportation
5 
Franchising and Regulatory Board (LTFRB) in the approval of applications for franchise to
6 
operate, including its renewal, for nine (9) years from the effectivity of this Act.
7 
3. Exemption from the Unified Vehicular Reduction Program (UVRP) or number-Coding
8 
Scheme. -  All electric and hybrid vehicles shall, for nine (9) years from the effectivity of this
9 
Act, be exempted from the mandatory Unified Vehicular Volume Reduction Program
10 
(UWRP) or Number-Coding Scheme being implemented by the Metro Manila Development
11 
Authority (MMDA) and other local government units (LGUs) concerned.
12 
4. Provision for Free Parking Spaces in New Establishments. -  Business and
13 
commercial establishments to be constructed after the effectivity of this Act are mandated to
14 
provide exclusive parking spaces free of charge for all electric and hybrid vehicles. No
15 
building permit shall be issued for the construction of business and commercial
16 
establishments that include parking spaces unless the owner submits an affidavit that there
17 
shall be free parking spaces to be exclusively designated for electric vehicles for nine (9)
18 
years from the effectivity of this Act.
19 
5. Land Allocation, Zoning and Utilization by Local Government Units (LGUs) for Electric
20 
and Hybrid Vehicle Charging Stations. -  LGUs shall allocate land and lot space for the
21 
construction of EV charging stations to encourage wider deployment of electric and hybrid
22 
vehicles in their areas of jurisdiction.
23 
SEC. 12. Registration, Implementation and Monitoring. -  The Department of Finance
24 
(DOF) and Department of Trade and Industry (DTI) shall be responsible for the
25 
administration and implementation of the incentives granted under this Act.
26 
Manufacturers, assemblers, converters and importers of electric and hybrid vehicles
27 
shall register with DOF in order to avail of the incentives provided under this Act. For proper
28 
monitoring, DOF and DTI shall meet regularly to monitor and review the implementation of
29 
the incentives provided herein.
30 
SEC. 13. Implementing Rules and Regulations. -  The Department of Finance (DOF)
31 
in coordination with the Department of Trade and Industry (DTI) shall promulgate the
32 
necessary rules and regulations for the effective implementation of this Act.
33
34
35
SEC. 14. Administrative Support. -  The Department of Trade and Industry (DTI) shall 
provide overall administrative support to the Task Force by appropriating the corresponding 
budget needed for the effective implementation of its mandate.
36 
SEC. 15. Implementing Rules and Regulations. -  The Department of Trade and
37 
Industry (DTI) shall promulgate the necessary rules and regulations.


1 
SEC. 16. Separability Clause. -  If any provision of this Act is declared unconstitutional
2 
or invalid, other parts of provisions hereof not affected thereby shall continue to be in full
3 
force and effect.
4 
SEC. 17. Repealing Clause. -  All other laws, orders, issuances, circulars, rules and
5 
regulations or parts thereof, which are inconsistent with the provisions of this Act are hereby
6 
repealed or modified accordingly.
7 
SEC. 18. Effectivity Clause. -  This Act shall take effect fifteen (15) days following its
8 
publication in at least two (2) newspapers of general circulations or the Official Gazette.
Approved,