EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )

First Regular Session )
HOUSE OF REPRESENTATIVES

HLBNe, 9431

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
REDUCING THE COST OF ELECTRICITY FOR NATIONAL GOVERNMENT
OFFICES BY PROMOTING THE DEVELOPMENT AND UTILIZATION OF
SOLAR ENERGY IN ALL GOVERNMENT BUILDINGS AND OFFICES,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Explanatory Note

Energy security is a crucial factor in achieving economic development of the society.
The Philippine government is hard-pressed to fulfill its commitments to de-carbonize the
energy industry for 450 Scenario’, achieve energy independence and pursue higher
electrification rates, even as the population continues to grow at an average of 1.66 percent in
2010 to 2020 and 1.31 percent in 2020 to 2030.”

Additional pressure comes from rising price of oil worldwide, since oil and other
fossil fuels will continue to account significantly for our energy consumption until 2020.° The
International Energy Agency has predicted world price at USD 128 a barrel in 2035."
Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) Reference Basket
projects an average nominal price of USD 110 a barrel up to the year 2020 and then rise to
USD 160 by 2035.°

This proposed measure seeks to mandate the Department of Public Works and
Highways (DPWH), in coordination with the Department of Energy (DOE), to construct
Renewable Energy (RE) Systems in and retrofit government buildings and offices, by
installing Solar Energy Systems. Solar Energy is the most abundant renewable energy (RE)
resource that can be installed to generate power at a faster rate. This is in contrast to fossil
fuel-based power plants that need a minimum of three to five years gestation period.

‘The solar energy systems to be established shall initially supply at least ten percent of
the electric power requirements of the government agencies in their respective buildings or
offices, which shall be gradually increased annually for five years until the established solar

" Yoterational Energy Agency World Energy Outlook 450 Scenario

2 Philippine Statistics Authority

* Department of Energy Supply - Demand Outlook 2013-2020

“IEA 2035 Energy Outlook

5 OPEC Reference Basket [Saharan Blend (Algeria), Girassol (Angola) Oriente (Eeuador, ran Heavy (Islamic Republic of
Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab
Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela)


energy systems are expected to supply fifty percent of the power requirements of all
government agencies.

According to the RE resource assessment conducted by the DoE, the country’s Solar
Energy annual potential average is estimated at 5.1 kilowatt-hour (kWh)/m2/day’, which
represents fuel input that is free-of-charge and will not affect our foreign currency reserves as
imported petroleum and other fossil fuels do. In addition, the production and installation of
materials and equipment for use in solar energy systems incur minimal environmental and
physical impacts.

Solar energy systems do not require extraction activities like large-scale mining or
drilling which bring about negative environmental impacts. It does not generate Greenhouse
Gases such as carbon and methane nor emit particulates that are the bane of fossil fuels. Most
important, solar panels can be installed on rooftops and designated areas without disrupting
activities or dislocating electric power consumers. Solar energy systems also generate
substantial savings versus fossil-fueled power plants whose feed stocks have to be transported
over long distances for which generators incur transport or hauling costs.

This bill also creates opportunities for employment in terms of new jobs generated
and enhanced skills of Filipino labor in the RE industry that will push their competitive edge
worldwide. The Feed-In-Tariff policy has reportedly attracted $800 Million in direct
investments in the RE industry and has resulted in the creation of 3,500 new jobs.

Likewise, this bill will provide the impetus for the country to reach its target RE
utilization of 15,304 MW in 2030, from the current 5,438 MW RE utilization. Tapping
renewable energy for government buildings will encourage others to explore the use of solar
energy systems which can effectively reduce utility costs footprint.

Hence, the passage of this bill is earnestly

VILMA SANTOS-RECTO

Department of Energy Renewable Energy: Biomass, Solar, Wind and Ocean http://www doe.gov.phirenewable-energy-
res/biomass-solar-wind-and-ocean


EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )

First Regular Session )
HOUSE OF REPRESENTATIVES

H.B.No,_3431

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
REDUCING THE COST OF ELECTRICITY FOR NATIONAL GOVERNMENT
OFFICES BY PROMOTING THE DEVELOPMENT AND UTILIZATION OF
SOLAR ENERGY IN ALL GOVERNMENT BUILDINGS AND OFFICES,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. Title. ~ This Act shall be known as “The Solar Energy in National
Government Offices Act”.
SEC. 2. Declaration of Policies. — It is hereby declared the policy of the State:

a) To mandate the development and utilization of renewable energy resources in

government buildings and offices;

b) To establish the infrastructure and mechanisms to ensure efficient, cost-effective

and sustainable supply of power from solar energy systems; and

°)

To ensure energy-sufficiency of government agencies for the prompt and
unhampered delivery of services to its constituents.

SEC. 3. Coverage. ~ This Act shall provide a framework for the establishment of
solar energy systems in all national government buildings and offices.

SEC. 4. Establishment of Solar Energy Systems in National Government Buildings
and Offices. ~ All government agencies in coordination with the Department of Public Works
and Highways (DPWH) and the Department of Energy (DOE) shall begin the construction of
solar energy systems in and retrofit their respective buildings and offices within sixty (60)
days after the effectivity of this Act: Provided, That Solar Energy Systems shall refer to

energy systems which convert solar energy into thermal or electrical energy.


SEC. 5. General Guidelines. ~ For the purposes of this Act, the following are the
General Guidelines for solar energy systems in national government buildings and offices:

a) Establishment and construction shall immediately commence to supply power to

government buildings or offices;

b) The Department of Finance shall apply the appropriate provisions of Chapter VII

General Incentives of Republic Act No. 9513 or the Renewable Energy Act of
2008 to the RE Systems to be established and constructed for g0 page 1 of 2
agencies; and

©) Government agencies shall enjoy the privileges granted to qualified end-users as

certified by the DOE-Renewable Energy Management Bureau, as provided for in
Sections 10 and 12 of R. A. No. 9513.

SEC. 6. Minimum Standard. — ‘The solar energy systems to be established shall
initially supply at least ten per cent (10%) of the electric power requirements of the
government agencies in their respective buildings or offices for the first year after the
effectivity of this Act: Provided, That solar energy utilization shall be increased annually for
five years at which time the established solar energy systems are expected to have the
capacity to supply fifty percent (50%) of the power requirements of government agencies:
Provided, further, That nothing in this Act shall preclude the expansion of existing solar
‘energy systems installed in government buildings and offices.

SEC. 7. Funding, — The amount necessary for the immediate implementation of this,
Act shall be charged against any available funds of the government agencies covered in this
Act. Thereafter, such sums as may be necessary to implement this Act shall be included in the
General Appropriations Act (GAA).

SEC 8. Implementing Rules and Regulations. ~ The DOE shall provide the necessary
implementing rules and regulations for the effective implementation within thirty (30) days
upon the approval of this Act. Such rules and regulations shall take effect after they have
been issued and shall be published in at least two (2) newspapers of general circulation.

SEC. 9. Separability Clause. — Any portion or provision of this Act that may be
declared unconstitutional or invalid shall not have the effect of nullifying other portions or
provisions hereof, as long as such remaining portions or provisions can still subsist and be
given effect in their entirety.

SEC. 10. Repealing Clause. — All laws, acts, decrees, executive orders, issuances, and
rules and regulations or parts thereof which are contrary to and inconsistent with this Act are

hereby repealed, amended or modified accordingly.

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1 SEC. 11. Efectivity. - This Act shall take effect fifteen (15) days following its
2. publication in at least two (2) newspapers of general circulation or in the Official Gazette.
Approved,

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