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one: OS MAY 2014 %)

Time:

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH (16"") CONGRESS
First Regular Session

: House sino, 4334

Introduced by Representative Mark A. Villar

EXPLANATORY NOTE

today’s modern world. technology is changing at a dizzvingly blinding
Pace. New technologies are invented on an everyday basis. Unfortunately, all
tts comes at an expensive price. Our environment is being sacrificed in the
€ of progress. Hence, the State must implement policies to ensure
istainable development in all areas of progress.

One such area is the automobile industry. Hybrid vehicles or
akernatively-fucled cars are slowly gaining foothold among the population. This
is because hybrid cars produce 90% less pollutants than comparable non.
hybrid cars. By putting less harmful chemicals in the environment, the harmful
cfects of pollution can be halted or even reversed. To encourage purchase of
these cars, some jurisdictions, notably the United States of America support
hybrid car ownership by allowing a tax write off to make it more attractive to
own a hybrid car.!

However, in the Philippines, while alternatively-fueled cars are being
offereé to the public, the high price has proven a huge disincentive to
consumers, Coupled with this high price is the perceived high cost of
maintenance due to expensive parts. While it is true that hybrid cars do have
expensive parts, they also have warranties that provide free replacement of the
most expensive parts for many years

" nito://www.hybrid-car.org/hybrid-car-facts htm!



There is therefore wisdom in encouraging consumers to purchase these
vehicles. While the prices are quite high for now, a separate law granting fiscal
incentives may be enacted. But this entails long and complicated processes
involving lengthy debates, For the meantime, these non-fiscal incentives may be
an important and ground-breaking step to encourage purchase of these
Vehicles, Exemption from color-coding or similar traffic-reduction schemes may
be miniscule but it is an important factor in buying a vehicle. Similarly,
discounts in registration and parking fees offers an incredible incentive to
owners in that the more and longer you use your car, the more savings you end
ip getting, It is therefore an unbeatable combination which will push
consumers to choose these vehicles, thereby ensuring the preservation of our
environment.

In view of the foregoing, immediate approval of this bill is carnestly
sought :

a

MARK A. VILLAR


St bata

iw
“Secon?
Republic of the Philippines.

HOUSE OF REPRESENTATIVES
QUEZON Cry

SIXTEENTH CONGRESS:

First Regular Ses
House Bill No. 4084

INTRODUCED BY HON. MARK A. VILLAR

AN ACT
PROVIDING NON-FISCAL INCENTIVES
FOR THE PURCHASE OF ELECTRIC, HYBRID
AND OTHER ALTERNATIVE FUEL VEHICLES
AND FOR OTHER PURPOSES.

te 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 “Electric, Hybrid and Other
ternative Fuel Vehicles Purchase Non-Fiscal Incentives Act of 2014”.

SEC. 2. Declaration of Policy. ~ It is the policy of the State to safeguard life and
nvironment by encouraging the use of alternative sources of energy for vehicles intended
% public and private use. To protect the well-being and promote the economic condition of
2€ people as well as to promote energy independence and security in the midst of
evelopment and innovation in technology, the following are hereby declared:

{a) It is the policy of the State to protect and advance the right of the people to a
alanced and healthful ecology in accord with the rhythm and harmony in nature. The
tate shall recognize and address the detrimental effects on the environment, safeguard the
velfare and protect the health of the people by improving air quality and by reducing the
npact of greenhouse gas effects emitted from man-made sources such as vehicles
perating on fossil fuels;

(b) The State supports the need to promote the development of new technology to
ceelerate social progress and promote human development. The use of alternative sources
f energy on vehicles intended for public and private use is encouraged to promote
movation, energy efficiency, security and conservation, and to speed up the deployment of
leaner technology; and,

(©) The State recognizes the indispensable role of the private sector, particularly

onsumers, in achieving these goals. To encourage purchase of these vehicles, the State



See. 3. Definition of Terms. — As used herein, the following shall mean:

(®) Electric Vehicle (BV) shall refer to any vehicle that uses electric motors solely for
ropulsion.

(b) Hybrid Vehicle (HV) shall refer to any vehicle that combines the technologies of
sing internal combustion engine (ICE) with a battery-powered clectric motor to gain
vantages of both propulsion systems.

(©) Other Alternative Fuel Vehicle (AFV) shall refer to any vehicle using alternative
ources of energy such as, but not limited to: solar, wind, hydrogen fuel cell, compressed
atural gas (CNG) or liquefied natural gas (LNG) and liquefied petroleum gas (LPG), other
aan conventional sources of energy like petroleum and gasoline for propulsion.

(@) Consumer shall refer to a purchaser, public or private of an EV, HV or AFV.

Ec. 4. Coverage. ~ This Act shall cover electric, hybrid and other alternative fuel vehicles
ut shall not inchide vehicles powered by gasoline, petroleum, bio-diesel and bio-ethanol.

Ec. S. Incentives to Consumers. - The provision of any special or general law to the
ontrary notwithstanding, the consumer who purchases electric, hybrid and other
Iternative fuel vehicles, shall be entitled to the following:

(a) Exemption from the implementation of Vehicle Traffic Reduction System, the Color
Coding Scheme or any similar schemes, anywhere in the Philippines;

{b) Reduced annual motor vehicle registration fee;

(c) Reduced parking rate;

(a) Such other incentives to be determined by the appropriate government agency.

Ec. 7. Registration, Implementation and Monitoring. ~The Department of Trasportation and
‘ommunication (DOTC), Department of Trade and Industry (DTI), and the Department of
aterior and Local Government (DILG) shall be responsible for the administration and
nplementation of the incentives granted under this Act.

8c. 8. Implementing Rules and Regulations. ~ The DOTC, in coordination with the DTI,
hall promulgate the necessary rules and regulations for the effective delemantation of
ais Act

8c. 9. Separability Clause. — If any provision of this Act is subsequently declared invalid or
neonstitutional, the other provisions hereof which are not affected thereby shall remain in

all force and effect.

Fe 10 Renenlina Ciese — Al laws acta ‘residential decrees exeentive orders


jsuances, presidential proclamations, rules and regulations or parts thereof which are
ontrary to or inconsisterit with any provision of this Act are hereby repealed, amended or
iodified accordingly.

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

Approved.