HOUSE OF REPRE

ENTATIVES

EEVED
03 AUG 2016

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

ATION UNIT
iNEX SERVICE

HOUSE BILL NO. 2388

AN ACT INSTITUTIONALIZING ENERGY EFFICIENCY AND
CONSERVATION, PROMOTION OF RENEWABLE ENERGY FOR
ENERGY SECURITY, PROVIDING GUIDELINES AND GRANTING

INCENTIVES TO ENERGY EFFICIENCY AND CONSERVATION
PROJECTS, AND FOR OTHER PURPOSES

Introduced by REP. HENEDINA RAZON- ABAD #

EXPLANATORY NOTE

‘Three major realities confront the energy sector at present - steadily
increasing demand for energy, high-energy costs, and vulnerability to climate change.
in the same breadth, unmet energy demand adversely impacts on quality of life and
the country’s competitiveness. Clearly, the government is faced with the important
task of ensuring coherence and balance of the country’s energy, environment, climate
and economic policies, strategies and plans to effectively address these problems ina
strategic manner. In many economies, energy efficiency initiatives are the linchpin of
national policies to reduce energy consumption, improve energy security and tackle
environmental issues such as climate change. Energy efficiency is said to be the
fastest, most cost-effective means to create energy supply buffers and to reduce
greenhouse gas emissions. The cheapest, cleanest and most reliable electricity, after
all, is the electricity we do not use. The gains from consuming energy more efficiently
are multiple. It helps people and business save money. It reduces the emission of
harmful greenhouse gases; the need to build new power plants and the consumption
of energy generally. From a utility perspective, energy efficiency improves the
reliability of our electric grid and lowers cost for infrastructure maintenance. In
addition, more energy is available for other uses, and the economy benefits from
decreased energy expenditures, increased competitiveness, higher incomes and
revenues, improved trade balances and increased national energy security. Best ofall,
saving energy is generally far cheaper than producing or importing new energy



supplies.

The Philippines has its own set of energy efficiency intiatives. Most recently,
the Department of Energy produced its masterplan ~ Energy Efficiency Roadmap for
the Philippines for 2014-2030 - to improve energy efficiency in the country, with
specific targets for energy-intensive sectors such as transportation, industry,
commercial and residential sectors. DOE sets the following aspirations: “40%
reduction in energy intensity by 2030; decrease of energy consumption by 1.6 % per
year against 2010 baseline; and annual savings of approximately 10,665 KTOE
(kilotons of oil equivalent), which is one-third of current demand”.

Lack of a regulatory framework as well as the absence of an appropriate
institutional mechanism inhibits wider and effective implementation of energy
efficiency measures. Quality testing infrastructure to effectively implement standards
and labeling programs must also be put in place. Sustained awareness raising of the
public and local capacity development for energy managers in factories and
companies are also critical in achieving energy efficiency targets.

While the Philippines has established a great deal of programs to advance
energy efficiency, these activities have not been sustained due to the lack of a
regulatory and institutional framework that can only be established by law.

in view of this, the deliberation and early passage of this bill is urgently sought.

“AL. Cbd

HENEDIN, ZON-ABAD

2 Energy Effi

sncy Roadmap for the Philippines 2014-2030 Milestones and Challenges


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEETH CONGRESS
First Regular Session

2388

HOUSE BILL NO.

Introduced by REP. HENEDINA RAZON- ABAD

AN ACT INSTITUTIONALIZING ENERGY EFFICIENCY AND
CONSERVATION, PROMOTION OF RENEWABLE ENERGY FOR
ENERGY SECURITY, PROVIDING GUIDELINES AND GRANTING
INCENTIVES TO ENERGY EFFICIENCY AND CONSERVATION
PROJECTS, AND FOR OTHER PURPOSES

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

assembled:

CHAPTERI
GENERAL PROVISIONS

SEC. 1, Short Title. This Act shall be known as the “Energy Efficiency and
Conservation Act of 2016."
SEC. 2, Policy Declaration. It is hereby declared the policy of the State to:
a) Institutionalize energy efficiency and conservation as a national way of life
geared towards the efficient and judicious utilization of energy by
formulating, developing, and implementing energy efficiency and

conservation plans, programs and systems;

b)

Secure sufficiency of energy supply while protecting the environment in
support of the economic and social development goals of the country;

5

Promote and encourage the development and utilization of household
renewable energy technologies and systems to complement the energy
efficiency and conservation efforts;

d) Ensure market-driven approach to energy efficiency, conservation,

sufficiency and sustainability in the country.


SEC. 3. Scope. This Act shall provide the framework for institutionalizing

fundamental policies and standards on energy efficiency and conservation, increasing the

utilization of household renewable energy technologies, and defining the responsibilities,

authorities and accountabilities of various government agencies and private entities.

SEC, 4, Coverage. This Act shall cover the target sectors of household, transport,

buildings, industrial/manufacturing, and other electric power consumers in. the

economy, whether private or public, by virtue of the impact these can create on energy

efficiency and conservation efforts.

SEC. 5. Definition of Terms. For purposes of this Act, the following terms shall,

unle:

a)

s the context indicates otherwise, have the following meanings:

Certified Energy Conservation Officer (CECO) refers to a Professional who

becomes eligible for this certification after demonstrating high levels of

experience, competence, proficiency and ethical fitess in the energy

management profession. A CECO shall be required for Type 1 Designated

Establishments. Type | Establishments shall designate an Energy Manager
who shall bea registered engineer;

Certified Energy Manager (CEM) refers to a Professional who becomes
eligible for this certification after demonstrating expertise in several areas
ranging from standards, air quality, energy audits, lighting, procurement and
even financing, It recognizes individuals who have demonstrated high levels
of experience, competence, proficiency and ethical fitness in the energy
management profession. A person appointed under Type 2 Designated
Sector shall be responsible in the supervision and maintenance of the
facilities for the proper management of energy consumption and perform
other functions deemed necessary for the efficient and judicious utilization
of energy. Type 2 Establishments shall employ full-time Certified Energy
Manager (CEM);

Demand Side Management refers to the reduction of energy consumption
through effective load management resulting to the decrease of power
demand and the migration of power demand from peak to off-peak periods
or such measures undertaken by distribution utilities to encourage end-
users to properly manage their loads to achieve efficiency in the utilization

of fixed infrastructures in the systems;


ad

oO)

)

8)

Designated Establishment (Type 1/Type 2 Designated Establishment)
refers to a private or public entity in the commercial, industrial, transport,
power, agriculture and public works sectors consuming energy and/or
having other index equivalent to such energy for the previous year beyond
the level specified by the Department of Energy (DOB). Such entities shall be
categorized as ‘Type 1 or Type 2 Designated Establishment, according to the
annual energy consumption, as follows:

i, Type 1 equal to or more than 7.2 terajoules (T]) or 172.0 tons of oil
equivalent (TOE) or 2,000,000 kilowatt-hours (kWh) but not more
than 28.8 T] or 687.9 TOE or 8,000,000 kWh;

ii, ‘Type 2 more than 28.8 T) or 687.9 TOE or 8,000,000 kWh;
Distribution Utility refers to any electric cooperative, private corporation,
government-owned utility or existing local government unit (LGU) which has
an exclusive franchise to operate a distribution system in accordance with
Republic Act No, 9136, otherwise known as the “Electric Power Industry
Reform Act of 2001;”

Energy refers to all types of energy available commercially including natural
gas (liquid natural gas and liquid oil gas), all heating and cooling fuels
(including district heating and district cooling), coal, transport fuels, and
renewable energy sources;

Energy Audit refers to the evaluation of energy consumption and review of
current energy cost to determine appropriate intervention measures and
efficiency projects in which energy can be judiciously and efficiently used to
achieve savings. The three types of energy audit are walk-through audit,
preliminary audit and detailed audit;

Energy Conservation refers to the reduction of losses and wastage in
various energy stages from energy production to energy consumption
through the adoption of appropriate measures that are technologically
feasible, economically sound and environmentally and socially affordable;
Energy Consumption Report refers to the periodic report submitted to the
DOE by Type 2 Designated Establishment and Transmission Utility with
regard to the EE&C plan. The items to be reported in the Energy Conservation
Report shall be specified by the DOF;



m)

Energy Consumption Report refers to the periodic report submitted to the
DOE by Type 1 or Type 2 Designated Establishments and Transmission
Utility containing their energy consumption, energy loss and other status of
energy use. The items to be reported in the Energy Cons
be specified by the DOE;

mption Report shall

Energy Conservation Officer (ECO) refers to a person appointed by Type 1
Designated Establishments responsible in the supervision and maintenance

of the facilities for the proper management of ene

‘gy consumption and such
other functions deemed necessary for the efficient and judicious utilization
of energy prescribed under this Act;

Energy Efficiency refers to the way of managing and restraining the growth
in energy consumption resulting in the delivery of more services for the same
energy input or the same services for less energy input;

Energy Efficiency and Conservation Office (EECO) refers to the office to be
established in local government units headed by the Energy Efficiency
Conservation and Sufficiency Officer, who shall be responsible for overseeing
the implementation of the program at the local government level;

Energy Labeling refers to the program of the government which requires
manufacturers to attach an energy label on their products to inform
consumers on the energy performance and efficiency of the product;
Energy Management refers to the process of designing and implementing
an optimal program of purchasing, generating and consuming various types
of energy based on the end-user’s overall short-term and long-term
management program, with due consideration of factors including costs,
availability, economics and environmental impact;

Energy Sufficiency refers to a condition where the quantity of the supply of

energy is enough or sufficient to meet the demand, including the required
reserves;

Energy Supplier refers to individuals and/or entities providing energy to
energy users;

Energy Users and/or Energy Using Entities refer to all energy demand

sectors such as commercial, industrial, transport, agricultural, household,


0

u)

and government buildings, and the power generation, transmission, and
distribution industry sectors;

Green Building means an integrated, or whole building, approach to the
planning, design, construction, and operation of buildings and their
surrounding landscapes that helps mitigate the environmental, economic,
and social impacts of buildings so they are energy efficient, sustainable,
secure and safe, cost-effective, accessible, functional, productive, and
aesthetic;

Minimum Energy Performance Standard refers to a pertormance standard
which prescribes a minimum level of energy performance that, appliances,
lighting, electrical equipment and machinery must meet or exceed before
they can be offered for sale or used for residential, commercial, transport and

industrial purpos

National Energy Efficiency and Conservation Coordinating Officer reters
to the person appointed by the leagues of the local government units from

among the local government’s Energy Eificiency Conservation and

Sufficiency Officers (EECSOs) who shall be responsible for integrating local
energy efficiency, conservation and sufficiency programs;
Office of Sustainable Energy Effi

to the office to be established in local government units headed by the Energy,

ncy and Conservation (OSEEC) refers

Efficiency Conservation and Sufficiency Officer, which shall be responsible
for overseeing the implementation of the program at the local government
level;

Road Transport Vehicle refers to a brand new or used transport vehicles
regardless of size or weight classification;

Specific Energy Consumption (SEC) refers to the energy consumption
volume required per unit, such as production volume, sales amount,
transportation ton-kilometer, transportation kilometer, floor space, and
such other indicators relevant to energy consumption;

Systems Loss refers to the difference between the electric energy purchased
and generated and the electric energy sold by a Distribution Utility. For
purposes of this Act, the term Systems Loss shall consist of the following

components: Technical Systems Loss, refers to the loss inherent in the


physical delivery of electric energy, including conductor loss, transformer

core loss, and technical errors in meters; Non-Technical Systems Loss, refers

to energy not related to the physical characteristics of the electrical system,
such as pilferage, tampering of meters, and erroneous meter reading; and
Administrative Systems Loss, refers to the energy required for the operation
of the distribution system and any unbilled energy for community-related
activities;

2) Transmission Utility reters to any private corporation or government-
owned utility, which has an exclusive franchise to operate the system of
wires extending from power generating units to the delivery points through
the grid. A transmission utility shall have the obligation to provide
transmission services to any end-user within its franchise area; and

aa) Waste Heat Recovery refers to the extraction of heat from fluids (i.e, gases
or liquids) produced in a thermodynamic or separation process, that would
otherwise be vented to the atmosphere, reinjected to the ground or disposed
of by through other means, for generation of electricity, cooling, heating or

other usable forms of energy.

CHAPTER 2
ENERGY PERFORMANCE STANDARDS AND LABELING REQUIREMENT

SE

. 6. Minimum Energy Performance Standards (MEPS). Manufacturers,
importers, distributors, and retailers of appliances, lighting products, transport vehicles
and other equipment shall implement the following measures:

a) Comply with the minimum energy performance standards and energy label
requirements set by the Department of Energy that is consistent with

internationally accepted standard

b) Subject their energy consuming products to energy performance testing.
SEC. 7. High Energy Consuming Equipment and Devices. All manufacturers,
importers, suppliers, distributors and retailers engaged in selling the designated

produc

all provide information such as energy performance and other information

that shall contribute to the general consumers’ awareness, knowledge, and actions. These

6


product details shall be specified under the Implementing Rules and Regulations (IRR) of
this Act.

SEC. 8. Energy Labeling Requirements for Products and Equipment.
Importers or manufacturers of all energy-consuming products shall implement the
following measures:

a) Display energy labels providing information, such as level of energy
consumption and efficiency rating, to inform consumers of their energy
efficiency performance;

b) Provide information that contributes to general consumers’ awareness,

knowledge and actions toward energy efficiency and conservation; and

©) Submit product samples to DOE for verification testing
SEC, 9. Fuel Economy Performance for Road Transport Vehicles

and dealers

To ensure fuel efficiency for transport, vehicle manufacturers, importe
shall comply with fuel economy performance labeling requirements set by the DOE. The

and dealers shall provide technical information on fuel

vehicle manufacturers, importe

economy rating of the engine that will allow the consumer to make an informed decis

ion

in choosing the vehicles for their use.

SEC. 10. Energy Performance in Buildings. For new and retrofit buildings for
commercial and institutional use (hospitals, educational facilities, exhibition centers,
government offices and military facilities), LGUs shall implement the following measures

in accordance with building permit issuances

a) New building construction shall comply with the minimum requirements as
contained in the DOE issued Guidelines on Energy Conserving Design on
buildings;

b) Retrofit of buildings shall also comply with the minimum requirements as
contained in the DOE issued Guidelines on Energy Conserving Design on

buildings.

CHAPTER 3
OBLIGATIONS OF DESIGNATED ESTABLISHMENTS
This Chapter shall cover designated establishments in the _ building,

industrial /manufacturing, transport and power sectors.



SEC. 11, Type 1 Designated Establishment. Establishments with an annual
energy consumption equal to or more than 7.2. terajoules (TJ) or 172.0 tons of oil
equivalent (TOE) or 2,000,000 kilowatt-hours (KWH) but not more than 28.8 T) or 687.9
‘TOE or 8,000,000 kwh shall be categorized as Type 1 Designated Establishments and
shall include the following sectors: (a) building sector such as commercial, hotel, hospital,
educational institutions, office and government buildings; (b) retail, such as food and

beverage

services and other retail companies; (c)_ industrial/manufacturing (medium
size industrial/manufacturing plant) such as cement, mining, food and beverages,
electronic/semi-conductor, steel and metal fabrication, plastic, glass, vehicle, chemical,
appliance, and others; (d) transport sector (fleet) such as railway, road transport, sea
freight and passenger vessel, air transport cargo and passenger vessel; and (¢) power
sectors such as power generation; transmission and distribution utilities; (f) agriculture

sector, such as primary agriculture, irrigation, agriculture processing; and (g) public

works, such as

water, waste water, solid waste treatment, road energy performance, road
operators, and other urban and municipal services.

SEC, 12. Obligations of Type 1 Designated Establishments. Type 1

Designated Establishments shall have the following obligations:

a) Employ one (1) Certified Energy Conservation Officer (ECO) and shall, within
ten (10) working days, duly notify the DOE of the appointment and separation
from the service of the said CECO, The CECO shall manage the energy
consumption of facilities, equipment and devices, the implementation and
improvement of energy efficiency measures, the conduct of regular energy
audit, energy monitoring and control, and the preparation of periodic energy
consumption and energy conservation program reports of the establishment;

b) Keep records on monthly energy consumption data and other energy-related
data;

c) Set up annual targets and plans for the implementation of energy efficiency
and conservation projects;

d) Submit a Semi-Annual Energy Consumption Report (SAECR) and an Annual
Energy Conservation Program Report (AECP) to the DOE not later than 30 days
after the reference period;

¢) Conduct periodic Energy Audit once every three (3) years through either an

in-house energy auditor or by engaging private energy service company or


energy provider, and submit Energy Audit Report to the DOE upon completion
of the energy audit;

1) Improve average Specific Energy Consumption (SEC) in accordance with the

annual reduction targets to be established by the DOE in the Implementing
Rules and Regulations;

g) Set up programs to develop and design measures that promote energy
efficiency conservation and sufficiency that may include, but not limited to,
installation of renewable energy technologies.

SEC. 13. Type 2 Designated Establishment. Energy intensive establishments
with an annual energy consumption equal of more than 28.8 terajoules (J) or 687.9 tons
of oil equivalent (TOE) or 8,000,000 kilowatt-hours (kWH) are hereby categorized as
‘Type 2 Designated Establishments and shall include the following secto

a) building
sector such as commercial, hotel, hospital, educational institutions, office and
government buildings; (b) retail, such as food and beverage services and retail
companies; (c) industrial /manufacturing such as cement, mining, food and beverages,
electronic/semi-conductor, steel and metal, chemical, vehicle, appliance, glass, plastic,
and others; (d) transport such as railway, road transport fleet, sea freight and passenger
vessel, air transport cargo and passenger vessel; and (e) power sectors such as power

n utilities.

generating plants, and distribution and tra

SEC. 14. Obligations of Type 2 Designated Establishments. ‘Type 2

Designated Establishments shall have the following obligations:

a) Employ one (1) Certified Energy Manager (CEM), and shall, within ten (10)
working days, duly notify the DOE of the appointment or separation of the said
CEM. The CEM shall manage the energy consumption of facilities, equipment
and devices, the implementation and improvement of energy efficiency
measures, the conduct of regular energy audit, energy monitoring and control,
and the preparation of periodic energy consumption and energy conservation
program reports of the establishment;

b) Keep records on monthly energy consumption data and other energy-related
data;

¢) Set up annual targets, plans and methods of measurement and verification for

the implementation of energy efficiency and conservation projects;

9


d) Submit a Semi-Annual Energy Consumption Report and an Annual Energy
Conservation Program Report to the DOE not later than 30 days after the
reference period;

e) Conduct periodic Energy Audit once every three (3) years through either an
in-house energy auditor or by engaging private energy service company or
energy provider, and submit Energy Audit Report to the DOE upon completion
of the energy audit;

f) Improve average Specific Energy Consumption (SEC) in accordance with the
annual reduction targets to be established by the DOE in the Implementing
Rules and Regulations of this Act; and

y) Set up programs to develop and design measures that promote energy
efficiency conservation and sufficiency that may include but not limited to
installation of renewable energy technologies.

s

consumption equal to or more than 3.6 terajoules ('}) or 86.0 tons of oll equivalent (TOE)

15. Other Establishments. Establishments with an annual energy

or 1,000,000 kilowatt-hour (kWH) but less than 7.2 TJ or 172 TOE or 2,000,000 kilowatt-
hour (kWH) shall be required to submit an annual energy consumption report to DOE.
‘These establishments may submit themselves to external audit or quality control

assessment on a voluntary basis to assist them in their energy planning and management.

CHAPTER 4
INCENTIVES FOR ENERGY EFFICIENCY AND CONSERVATION

SEC. 16. Fiscal Incentives.

A. Investors, developer

s, energy service companies and users of energy-efficient

technologies and practices from procurement to manufacturing to supply, as duly
certified by the DOE, shall be entitled to the following incentives:

a) Tax and Duty Exemption on Imported Capital Equipment. - Within the first five

(5) years upon the issuance of a certification by the DOB, the importation of

technologically energy-efficient machinery, equipment, vehicles, spare parts

and materials shall be exempt to the extent of one hundred percent (100%) of

the customs duties and national internal revenue tax payable thereon

Provided, That the machinery, equipment, vehicles and spare parts are directly

10


and actually needed and used exclusively by the users of energy-efficient
technologies and practices.
b) Tax

Credit on Domestic Capital Equipment. - A tax credit on the machinery

equipment and spare parts purchased from a domestic manufacturer
equivalent to one hundred percent (100%) of the value of the national internal

revenue taxes and customs duties that would have been waived had such

machinery, equipment, vehicles, and spare parts been imported: Provided,
That the said machinery, equipment, vehicles and spare parts are directly and

actually needed and used exclusively by the usei

of energy-efficient
technologies and practices.

©) Income Tax Holiday - Exemption from income taxes levied by the National
Government in accordance with the limitations and requirements of the
Omnibus Investment Code

d) The Department of Finance and concerned agencies shall draw-up appropriate
mechanisms for the grant of subsidies, establishment of guarantee funds
and/or tax credit equivalent to one hundred percent (100%) of the customs
duties and national internal revenues on the purchase and installation of
energy-efficient machinery, equipment and spare parts, whether for individual

or industrial us

B. Green Building. - New green buildings and energy efficient retrofit of existing
buildings shall be entitled to tax deductions equivalent to the difference in constructing
or retrofitting more expensive energy efficient buildings vis-a-vis standard or regular

buildings, provided such deduction shall be amortized over five (5) years, provided

further that this incentive shall be available only once per building and its energy

efficiency is subject to monitoring and verification by the DOE.

Government shall comply with green building requirements in constructing or
retrofitting buildings as contained in the DOE-issued Guidelines on Energy Conserving
Design on buildings consistent with international standards.

SEC. 17. Non-Fiscal Incentives, Establishments that will implement or are
implementing energy-efficient projects shall be entitled to the following non-tiscal
incentives:

a) Provision of awards and recognition for energy efficiency and conservation

best practices and successful energy-efficient projects and products.

u


b) Provision of technical assistance from government agencies in the
development and promotion of energy-efficient technologies.

SEC. 18. Financial Assistance. Gi

overnment Financial Institutions (GFls), such as
the Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP), and
other financial institutions shall, in accordance with and to the extent allowed by the
enabling provisions of their respective charters or applicable laws, provide concessional
financial packages for the development, utilization, and commercialization of Renewable

Energy and Energy Efficiency projects as duly recommended and endorsed by the DOE.

CHAPTER 5.
ROLE OF GOVERNMENT

SEC. 19. Role of the Department of Energy as the Lead agency- The DOE shall
be the lead government agency responsible for the planning, formulation, development,
implementation, enforcement and monitoring of energy management policies and other
related sustainable energy efficiency and conservation plans and programs, In addition
to its mandate, DOE shall have the following powers and functions:

a) Consult and coordinate with other government agencies, local government
units, and the private sector or create an inter-agency committee, as may be
deemed necessary, for the effective implementation of sustainable energy
efficiency and conservation policies of the government;

b) Initiate and maintain collaborative efforts with the business sector,
particularly the commercial, industrial, transport and power sectors, to
broaden and enhance their efficient and judicious utilization of energy;

c) Adopt energy performance standards, in coordination with the BPS-DTl,
consistent with those recognized internationally for machinery and
equipment, appliances, vehicles and other fuel-using combustion equipment
and electric devices, among others;

ind

d) Require manufacturers, importers, and dealers to comply with the MEPS
to display the Energy Label showing the energy requirement and consumption

efficiency of products on their packaging, and on the products themselves;

12


e)

f)

Ensure compliance with applicable and existing benchmarks for energy
performance in buildings and industries, in consultation with the appropriate
agencies and organizations;

Develop and maintain a centralized, comprehensive and unified database on
energy consumption, energy efficient technologies, renewable energy
technologies, and other critical and relevant information to ensure efficient

evaluation, analys

and dissemination of data and information for planning

and policy-making;

SEC. 20. Role of other government agencies - In general, all other government

agencies shall promote the judicious and efficient use of energy through their different

mandates. In addition, the following agencies shall have the functions and/or roles in the

promotion of sustainable energy efficiency and conservation:

a)

d)

e)

i)

Climate Change Commission (CCC). The CCC shall collaborate with the DOE

and other government agencies in establishing targets, monitoring and
recording all greenhouse gas emission reduction resulting from energy
efficiency and conservation projects;

Commi

ion on Higher Education (CHED) and State Universities and
Colleges ~ The CHED and SUCs shall integrate into the existing curricula

appropriate courses related to energy management.

Department of Education (DEPED), The DepEd shall promote energy
efficiency and conservation practices through its K-12 career advocacy
program.

Department of Finance (DOF). The DOF and concerned agencies shall draw-
up appropriate mechanisms for the grant of subsidies and/or tax credit
equivalent to one hundred percent (100%) of the customs duties and national
internal revenue taxes on the purchase and installation of RE machinery and
equipment, whether for individual and industrial use.

Department of Interior and Local Government (DILG). The DILG, in
coordination with the DOE, shall be responsible in ensuring compliance of all
LGUs in implementing energy efficiency and conservation through adoption of
appropriate Energy Management System.

Department of Public Works and Highway (DPWH). The DPWIH, in

coordination with the DOE, shall be responsible in ensuring the

13


8)

h)

k)

implementation of Guidelines on Energy Efficiency and Conserving Design in
Buildinglas part of the National Building Code.

Department of Trade and Industry (DTI). The DT! through the Bureau of
Product Standards (BPS), in consultation with the DOE, shall require
manufacturers, importers and dealers to comply with the MEPS and to display
the Energy Label on the packaging or the products themselves of every
designated machinery and equipment, appliances, vehicles and other fuel-
using combustion equipment and electric devices to show their energy
requirement and consumption efficiency.

Department of Science and Technology (DOST). The DOST shall be
responsible in carrying-out strategic research and development program
aimed at facilitating the development of energy efficient technologies and the
promotion thereof.

Department of Transportation and Communication (DOTC). The DOTC, in
coordination with DOE, shall be responsible in ensuring compliance
requirement of vehicle manufacturers and importers on MEPS for road
transport vehicles and to display the energy consumption label in coordination
with the vehicle manufacturers, road transport industry associations, public
transport group and Non-Government Organizations, It shall also be
responsible in ensuring compliance and enforcement of energy management
system in the sea and air transport sectors.

Government Financial Institutions (GFls). The GFls shall set aside lending
funds for Energy Efficiency and Conservation Projects at concessional rates of
interest to attract private sector investments.

Philippine Statistics Authority (PSA). The PSA, in coordination with the
DOE, shall institutionalize household energy consumption survey (HECS) and
survey of energy consumption of establishment (SECE) to establish energy
consumption database.

Technical Educational Skills Development Authority (TESDA). - TESDA,
in collaboration with CHED, DOST and other similar training and service

institutions shall develop a program/system for the Certi

tion of Energy

Managers and Conservation Officers. It shall also ensure the promotion of

14


energy efficiency practices through its Technical Vocational Education and
‘Training (TVET).

CHAPTER 6
ROLE OF LOCAL GOVERNMENT UNITS AND LEAGUES OF
LOCAL GOVERNMENT UNITS AND ELECTIVE OFFICIALS

‘1, Support and Coordination of Local Government Units and Leagues
of Local Government Units and Elective Officials. ~ In support of the government's

sustainable energy efficiency and conservation program, local government units

all
integrate a local energy efficiency program, to be headed by the Municipal/City Planning
and Development Officer, into their local development plan based on the guidelines to be
provided by the Implementing Rules and Regulations of this law. The Energy Efficiency

and Conservation (EE&C) plan shall include the reporting of an Annual Energy

Consumption by SMEs as part of the requirements for business permit renewal
The LGU shall monitor and report on the status of energy efficiency programs and

projects to the DILG and the DOE,

CHAPTER 7
CERTIFICATION FOR PROFESSIONAL COMPETENCY AND
ACCREDITATION FOR PROFESSIONAL SERVICES

. 22. Certified Energy Manager (CEM) and Certified Energy Conservation
oO

‘er (CECO), There shall be an approved learning curriculum for achievement of
required competencies and skills, and a competency-based system for the assessment
and certification of Energy Managers and Energy Conservation Officers to be developed
through the collaboration of the Department of Energy, the Commission on Higher
Education (CHED), and TESDA.

The certification system shall be based on an approved scope of practice anda set
of competency standards, with clear assessment process and tools, and certification for
the determined competency, and undertaken by the prescribed governance structure.

Similarly, competent Non-Profit Organizations and other private training
institutions duly accredited by the DOE and CHED, shall offer professional certificate

programs for Energy Manager and Energy Conservation Officer,


CHAPTER 8
FINAL PROVISIONS

SEC 23. Creation of additional plantilla positions for the Energy Efficiency
and Conservation Division of the DOE. To ensure the effective implementation,
enforcement and monitoring of the provisions of this Act, additional positions under the
DOE-EECD shall be created.

SEC. 24. Prohibited Acts. The following acts shall not be allowed:

a) Failure to comply with the MEPS and the Energy Label showing the energy
requirement and consumption efficiency of products on their packaging, and
on the products themselves;

b) Pailure and/or willful refusal to submit periodic reportorial compliance
reports to the DOE/LGU;

¢) Failure and/or willful refusal to appoint/designate a Certified Energy
Conservation Officer/Certified Energy Manager;

d) Failure to comply with the Order under Section 15 hereof;

e) Willful refusal to an on-site inspection; and

f) Failure to submit energy audit report;

SEC, 25, Recommendation, Disclosure, and Order. - Upon determination that
an establishment has committed any of the prohibited acts under Section 23 of this Act,
the DOE may consider the following measures prior to the imposition of the appropriate
sanctions/penalties for such violations:

a) Provide citations in cases where the DOE finds materially insufficient reports,

false returns, and non-submission of notifications or repor

b) Disclose the name of the establishment in cases where the establishment that
has received a citation under the preceding paragraph, failed to remedy such
citation by the DOE; and

©) Issue an Order to the establishment to take measures in cases where the said
establishment failed to follow or comply with the citation or recommendations
issued by the DOE. Failure on the part of the establishment to comply with
such order shall be ground for imposition of penalties in accordance with

Section 26 of this Act.

16


SEC. 26. Visitorial Power. For the effective enforcement of this Act, the DOE shall

have the authority to visit Designated Establishments to inspect energy-consuming,
facilities, evaluate energy management procedures, identify areas for efficiency
improvement, and verify energy monitoring reports and other documents related to the
compliance requirements of this Act.

SEC. 27. Penalties. The responsible officers and employees together with any

establishment or or;

anization, who willfully commit any of the prohibited acts
enumerated under Section 23 of this Act, shall, upon conviction, be liable for penalties
that will be defined in the IRR.

s

28. Contingency Powers. Upon the recommendation of the Secretary of
Energy, in times of critical energy supply disruptions or imminent danger thereo!, the
President may direct the adoption of stringent energy conservation measures, including
but not limited to power/fuel allocations or rationing; limiting the operating hours of
commercial, industrial, and similar establishments; rationalizing the use of government
and private motor vehicles; staggering or limiting working hours in both public and

private

ectors; and, the temporary closure of energy intensive industries when deemed
necessary,

SEC. 29. Appropriations. For the implementation of this Act, such sums as may

be necessary shall be taken from the current fiscal year appropriation of the DOE and the

DOST and from such other funds that may be made available. Thereafter, the amount
needed for the implementation of the act shall be included in the annual General
Appropriations Act.

SEC. 30. Implementing Rules and Regulations. The DOE shall, in consultation
with concerned government agencies and/or entities, local government units, industrial
and commercial sectors, and other relevant stakeholders, promulgate the Implementing
Rules and Regulations (IRR) within six (6) months from the effectivity of this Act

SEC. 31. Separability Clause. If for any reason, any section or provision of this
Act is declared unconstitutional or invalid, such parts not affected thereby shall remain
in full force and effect

SEC. 32. Repeating Clause. All laws, presidential decrees, executive orders,

issuances rules and regulations, inconsistent with the provi

ions of this Act are hereby

repealed or modified accordingly


SEC. 33. Effectivity. This Act shall take effect within fifteen (15) days after its

publication in at least two (2) newspapers of general circulation after its approval

Approved,