HUUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS OF THE REPUBLIC)

OF THE PHILIPPINES RECEIVED
FirstRegular Session )
pave:__01 AUG 2015
HOUSE OF REPRESENTATIVES, awe. DM
H.No, 2172 ey:

ATION UNIT
Introduced by Representative Vilma Santos-Re@BLS A\2 Avi x SERVICE

6th 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 450Scenario', achieve energy independence and pursue higher electrification rates,
even as the population continuous 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 for our energy consumption until 2020.° ‘The International Energy
Agency has predicted world price at USD 128a 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 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
and generates power faster. This is in contrast to fossil fuel-based power plants that need a
minimum of three to five years gestation period.

The solar energysystems 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 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

"Intemational Energy Ageney World Energy Outlook 450 Scenario

*Philippine Statistics Authority

Department of EnergySupply - Demand Outlook 2013-2020

“IEA 2035 Energy Outlook

S OPEC Reference Basket [Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran 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)]

® Department of Energy Renewable Energy: Biomass, Solar, Wind and Ocean htip://www.doe.gov.ph/renewable-enengy-
res/biomass-solar-wind-and-ocean


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-anid carbon ‘pt

Hence, the passage of this bill is eamestly sought -————_
DP

VILMA SANTOS-RECTO



SEVENTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVE

H.No,_ 178

Introduced by Representative Vilma Santos-Recto
6th 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 inNational
Government Offices Act of 2016”.
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
c) 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

stems in and retrofit their respective buildings and offices within sixty (60) days after

energy s
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) The solar energy system to be established and constructed shall immediately

‘commence to supply power to the government buildings or offices:


b) The Department of Finance shall apply the appropriate provisions of Chapter VIL
General Incentives of Republic Act No. 9513 or the Renewable Energy Act of 2008
to the RE Systems to be established and constructed for government agencies;

©) 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; and

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 point the
established solar energy systems are expected to have the capacity to supply fifty percent (50%)

of the power requirements of all government agenci

: 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 Department of Energy 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 made and shall be published in at least two (2) newspapers of general circulation,

SI

unconstitutional or invalid shall not have the effect of nullifying other portions or provisions

. 9. Separability Clause. — Any portion or provision of this Act that may be declared

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.

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

Approved,

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