EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
Senate Bill No.
638
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'19 
JUL 22 
A 9 « 8
Introduced by Senator FRANCIS N. PANGILINAN
REvlI
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% 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.
According to the Intergovernmental Panel on Climate Change (2014), the 
transport sector accounted for about 23% of global carbon dioxide emissions and 14% of 
global greenhouse gas (GHG) emissions in 2010. The Asian Development Bank (ADB) 
estimates that by 2035, transport will become the single largest GHG emitter accounting 
for 46% of global emissions, and 80% by 2050. In the Philippines, the sector accounts for 
35% of total GHG emissions.
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% reduction in the emissions from transportation. If 
power plants decarbonize over time, more significant emission cuts would be realized.1
According to the International Energy Agency, there were more than three 
million electric vehicles in the world's roads in 2017, an expansion of over 50% from 
2016. 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.
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-change-0815.


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% 
due to increased passenger capacity and cheaper electric charging cost than fuel prices.2
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 (UVVRP) 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 immediate passage of this bill is earnestly sought.
FRANCirSTPANGILINAN
Department of Trade and Industry. E-Vehicles. Available at h ttp :// industry.gov.ph/industry/e- 
vehicles/.


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
Senate Bill No. 
^  ^  ^
' ' I W i
(Sttttf of t!ji' s&rmtfi-p
'19 
JUL 22 
A 9 « 9
Introduced by Senator FRANCIS N. PANGILIf^AN
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 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 "Electric and Hybrid
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Vehicles Incentwes Act of 2019."
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SEC. 2. Declaration of Policy. - It is the policy of the State to safeguard life and
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environment by encouraging the use of alternative sources of energy for vehicles
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intended for public and private use. To protect the well-being and promote the
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economic condition of the people as well as to promote energy independence and
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security in the midst of development and innovation in technology, the following are
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hereby declared:
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a) It is the policy of the State to protect and advance the right of the people to
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a balanced and healthful ecology in accord with the rhythm and harmony
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in nature. The State shall safeguard the welfare and protect the health of the
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people by improving air quality and by reducing the impact of greenhouse
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gases emitted from man-made sources such as vehicles operating on fossil
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fuels.


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b) The State supports the need to promote the development of new technology 
to accelerate social progress and promote human development. The use of 
alternative sources of energy on vehicles intended for public and private 
use is encouraged to promote innovation, energy efficiency, energy 
security, and conservation and to speed up the deployment of cleaner 
technology.
c) The State recognizes the indispensable role of the private sector, encourages 
private enterprise, and provides incentives to needed investments. To 
accelerate economic growth and generate employment, the State shall 
provide incentives to private enterprises and individuals engaged in the 
manufacture, assembly, conversion, and importation of electric and hybrid 
vehicles, including charging stations.
SEC. 3. Definition of Terms. - As used herein, the following shall mean:
a) Electric Vehicle (EV) shall refer to any vehicle that uses electric motors solely 
for propulsion.
b) Hybrid Vehicle (HV) shall refer to any vehicle that combines the technologies 
of using internal combustion engine (ICE) with a battery-powered electric 
motor to gain advantages of both propulsion systems.
c) Manufacturer or Assembler shall mean any individual, partnership, 
corporation or other entity engaged in the manufacture, assembly and 
conversion of electric and hybrid vehicles incorporated, organized and 
existing under Philippine laws.
d) Importer shall mean any individual, partnership, corporation or other entity 
engaged in the importation of completely built units (CBUs) of electric and 
hybrid vehicles incorporated, organized and existing under Philippine 
laws.


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e) Charging Station shall refer to the element in an infrastructure that supplies
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electric energy for the recharging of electric and hybrid vehicles.
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SEC. 4, Coverage. - This Act shall cover electric and hybrid vehicles including
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charging stations but shall not include vehicles powered by gasoline, petroleum, bio-
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diesel and bioethanol.
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SEC. 5. Strengthening Public-Private Partnership for the Promotion of Electric
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Vehicles and Charging Stations. - The Department of Trade and Industry (DTI) shall
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strengthen its coordination with other government agencies by constituting an Inter-
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Agency Task Force for the Promotion of Electric and Hybrid Vehicles Including
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Charging Stations under the Industry Development Council to expedite identification,
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prioritization, and resolution of issues affecting the entire supply chain of the electric
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and hybrid vehicle industry by formulating a shared implementation plan and
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monitoring system.
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SEC. 6. Composition of the Inter-Agency Task Force. - The Task Force shall be
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composed of the following members:
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a) Secretary, Department of Trade and Industry - Chairperson
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b) Secretary, Department of Transportation - Vice-Chairperson
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c) Secretary, Department of Energy - Vice-Chairperson
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d) Secretary, Department of Finance - Member
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e) Secretary, Department of the Interior and Local Government - Member
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f) Secretary, Department of Science and Technology - Member
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g) Three (3) Representatives from the Electric and Hybrid Vehicle Industry
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Representatives from other agencies of the government may be invited as resource
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persons during the meetings of the Task Force.
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SEC. 7. Duties and Responsibilities of the Task Force. - The Task Force shall have
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the 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 vehicle and 
charging station manufacturers and assemblers;
b) Develop and implement standards which are aligned with international 
standards to govern electric and hybrid vehicles including batteries and 
charging infrastructures;
c) Review and recommend policy to increase public transport applications for 
electric and hybrid vehicles nationwide including their use for fleet 
operations in 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 for electric and hybrid 
vehicles and the corresponding parameters for Motor Vehicle Inspection 
System (MVIS) approval;
f) 
Coordinate with the electric power industry stakeholders, particularly the 
Energy Regulatory Commission (ERC) 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;
g) Undertake Information and Education Campaign (lEC) on the economic, 
social, and environmental benefits of the use of electric and hybrid vehicles; 
and
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.


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SEC. 8. Incentives for Manufacturers or Assemblers. - The provision of any special
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or general law to the contrary notwithstanding, the manufacture or assembly of
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completely knocked-down (CKD) parts of electric and hybrid vehicles including
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charging stations shall be exempt from the payment of excise taxes and duties for nine
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(9) years from the effectivity of this Act.
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The imposition of Value Added Tax (VAT) for the purchase and importation of
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capital equipment, spare parts, and components used in the manufacture or assembly of
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electric and hybrid vehicles including charging stations shall be suspended for nine (9)
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years from the effectivity of this Act.
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SEC. 9. Incentives for Importers. - The provision of any special or general law to
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the contrary notwithstanding, the importation of completely built units (CBUs) of
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electric and hybrid vehicles shall be exempt from the payment of excise taxes and duties
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for three (3) years from the effectivity of this Act.
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SEC. 10. Exemption from the Payment of Motor Vehicle User's Charge (MVUC). -
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Electric and hybrid vehicles shall be exempt from the payment of the Motor Vehicle
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User's Charge (MVUC) imposed by the Land Transportation Office (LTO) under
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Republic Act No. 8794, otherwise known as "Motor Vehicle User's Charge (MVUC)
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Act" for nine (9) years from the effectivity of this Act.
SEC. 11. Non-Fiscal Incentives. -
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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 to be prescribed by the LTO shall be exclusively 
issued to all electric and hybrid vehicles upon registration.
2) Priority in Franchise Application. - Public Utility Vehicle (PUV) operators 
exclusively utilizing electric and hybrid vehicles shall be granted priority by 
the Land Transportation Franchising and Regulatory Board (LTFRB) in the


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approval of applications for franchise to operate, including its renewal, for
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nine (9) years from the effectivity of this Act.
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3) Exemption from the Unified Vehicular Volume Reduction Program (UVRP) or
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Number-Coding Scheme. - All electric and hybrid vehicles shall, for nine (9)
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years from the effectivity of this Act, be exempted from the mandatory
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Unified Vehicular Volume Reduction Program (UVVRP) or Number-Coding
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Scheme being implemented by the Metro Manila Development Authority
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(MMDA) and other LGUs concerned.
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4) Provision for Free Parking Spaces in New Establishments. - Business and
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commercial establishments to be constructed after the effectivity of this Act
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are mandated to provide exclusive parking spaces free of charge for all electric
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and hybrid vehicles. No building permit shall be issued for the construction of
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business and commercial establishments that include parking spaces unless
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the owner submits an affidavit that there shall be free parking spaces to be
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exclusively designated for electric and hybrid vehicles for nine (9) years from
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the effectivity of this Act.
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5) Land Allocation, Zoning and Utilization by LGUs for Electric and Hybrid Vehicle
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Charging Stations. - LGUs shall allocate land and lot space for the construction
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of EV charging stations to encourage wider deployment of electric and hybrid
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vehicles in their areas of jurisdiction.
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SEC. 12, Registration, Implementation and Monitoring. - The Department of
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Finance (DOF) and the DTI shall be responsible for the administration and
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implementation of the incentives granted under this Act.
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Manufacturers, assemblers, converters, and importers of electric and hybrid
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vehicles shall register with DOF in order to avail of the incentives provided under this
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Act. For proper monitoring, the DOF and DTI shall meet regularly to monitor and
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review the implementation of the incentives provided herein.


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SEC. 13. Administrative Support. - The DTI shall provide overall administrative
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support to the Task Force by appropriating the corresponding budget needed for the
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effective implementation of its mandate.
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SEC. 14. Implementing Rides and Regulations. - The DOF and the DTI shall
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promulgate the necessary rules and regulations for the effective implementation of this
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Act.
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SEC. 15. Separabilit}/ Clause. - If any provision of this Act is declared invalid or
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unconstitutional, the other provisions not affected by such declaration shall remain in
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full force and effect.
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SEC. 16. Reptealing Clause. - All laws, executive orders, administrative orders, and
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rules and regulations inconsistent with this Act are hereby repealed or amended
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accordingly.
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SEC. 17. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
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complete publication in the Official Gazette or in two (2) newspapers of general
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circulation.
Approved,