Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _______ 
INTRODUCED BY  
REP. ALFRED VARGAS 
AN ACT 
ESTABLISHING A GREEN ENERGY FOR HOMES AND BUILDINGS 
PROGRAM IN THE DEPARTMENT OF ENERGY TO PROVIDE FINANCIAL 
ASSISTANCE TO PROMOTE RESIDENTIAL, COMMERCIAL, AND 
INDUSTRIAL SCALE ENERGY EFFICIENCY AND ON-SITE 
RENEWABLE TECHNOLOGIES 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 16, provides: 
The State shall protect and advance the right of the people 
to a balanced and healthful ecology in accord with the rhythm 
and harmony of nature. 
In a study conducted by the US Congress, it was found that: 
1. Homes and commercial or industrial buildings in the United States
consume significant quantities of energy, including energy for electricity and 
heating, the generation or combustion of which creates significant quantities 
of greenhouse gas emissions; 
2. In most cases, energy efficiency is the most cost-effective and rapidly
deployable strategy for reducing greenhouse gas emissions, energy demand, 
and the need for long-distance transmission of energy; 
3. On-site renewable energy generation reduces greenhouse gas
emissions, demand on the electricity transmission grid, and the need for long-
distance transmission of energy; 
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4. Many energy efficiency measures and on-site renewable energy
generation systems produce a net cost savings over the course of the useful 
life of the measures and systems, and often over a shorter time frame, but the 
initial expense required to purchase and install the measures and systems is 
often a significant barrier to widespread investment in the measures and 
systems; 
5. Financial products, financing programs, and other programs that
reduce or eliminate the need for the initial expense described in paragraph 4 
can permit building owners to invest in measures and systems that reduce 
total energy costs and realize net cost savings at the time of the installation 
of the measures and systems, defer capital expenditure, and enhance the 
value, comfort, and sustainability of the property of the owners. 
Green energy is thought of in the context of electricity generation, and 
is often used interchangeably with the terms ‘renewable energy’ and 
‘alternative energy’. Green energy sources are called such because they are 
perceived to have lower carbon emissions and create less pollution. 
This bill seeks to establish a Green Energy for Homes and Buildings 
Program.  Inspired by a similar proposal in the United States, the Program is 
designed to encourage widespread deployment of energy efficiency and on-site 
renewable energy technologies in homes and other buildings throughout the 
Philippines by encouraging the widespread availability of financial products 
and programs with attractive rates and terms that significantly reduce or 
eliminate upfront expenses thereby  allowing building owners to invest in 
energy efficiency measures and on-site renewable energy systems.  
Consumers, businesses, and organizations should be encouraged to 
purchase green energy to support further development, help reduce the 
environmental impacts of conventional electricity generation, and increase 
their nation’s energy independence. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought.  
ALFRED VARGAS 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _______ 
INTRODUCED BY  
REP. ALFRED VARGAS 
AN ACT 
ESTABLISHING A GREEN ENERGY FOR HOMES AND BUILDINGS 
PROGRAM IN THE DEPARTMENT OF ENERGY TO PROVIDE FINANCIAL 
ASSISTANCE TO PROMOTE RESIDENTIAL, COMMERCIAL, AND 
INDUSTRIAL SCALE ENERGY EFFICIENCY AND ON-SITE 
RENEWABLE TECHNOLOGIES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Green Energy 
Homes and Buildings Act”. 
SECTION 2. Definition of Terms. – For the purposes of this Act, the term: 
(a) “Cost” refers to the monetary value of expenditures for supplies,
services, labour, products, equipment and other items purchased for
use by a business or other accounting entity;
(b) “Direct Loan” means a loan by a lender to a customer without the use
of a third party;
(c) “Green Energy” refers to sources of energy that are natural; considered
to be environmentally friendly and non-polluting.  These processes
include but are not limited to anaerobic digestion, geothermal power,
wind power, small-scale hydropower, solar energy, biomass power, tidal
power, and wave power;
(d) “Loan Guarantee” means a promise by a government to assume a
private debt obligation if the borrower defaults;
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(e) “Program” refers to the Green Energy for Homes and Buildings Program; 
 
(f) “Secretary” means the Secretary of Energy; and 
 
(g) “Security” means shares, participation or interests in a corporation or 
in a commercial enterprise or profit-making venture and evidenced by 
a certificate, contract, instrument, whether written or electronic in 
character. It includes: 
(1) 
Shares of stock, bonds, debentures, notes, evidence of 
indebtedness, asset-backed securities; 
(2) 
Investment contracts, certificates of interest or participation in a 
profit-sharing agreement, certificates of deposit for a future 
subscription; 
(3) 
Fractional undivided interests in oil, gas or other mineral rights; 
(4) 
Derivatives like options and warrants; 
(5) 
Certificates of assignments, certificates of participation, trust 
certificates, voting trust certificates or similar instruments; 
(6) 
Proprietary 
or 
non-proprietary 
membership 
certificates 
incorporations; and 
(7) 
Other instruments as may in the future be determined by the 
Securities and Exchange Commission. 
 
SECTION 3. Green Energy for Homes and Buildings Goals. – 
 
(a) Development of targets and goals. – 
 
(1) 
The Secretary shall develop and publish for review and comment 
in the Official Gazette short, medium, and long-term goals 
(including numerical performance targets at appropriate intervals 
to measure progress toward those goals) for – 
(i) 
a minimum number of homes to be retrofitted through 
energy efficiency measures or to have on-site renewable 
energy systems added; 
(ii) 
a minimum number of other buildings, by type, to be 
retrofitted through energy efficiency measures or to have 
on-site renewable energy systems added; and 
(iii) the number of on-site solar energy, wind energy and 
geothermal heat pump systems to be installed; and 
 
(2) 
as a result of those retrofits, additions, and installations – 
(i) 
the quantity by which use of grid-supplied electricity, 
natural gas, homes heating oil, and other fuels will be 


reduced; 
(ii) 
the quantity by which total fossil fuel dependence in the 
buildings sector will be reduced; 
(iii) the quantity by which greenhouse gases are emitted will 
be reduced; 
(iv) the number of jobs that will be created; and 
(v) 
the estimated total energy cost savings for building 
owners. 
 
(b) The Secretary may rely on reasonable estimates made by originators of 
financial products or sponsors of financing programs for tracking 
progress toward meeting the goals established under this Section 
instead of requiring building owners to monitor and report on the 
progress. 
 
SECTION 4. Green Energy for Homes and Buildings Program. – 
 
(a) Establishment. – There is established in the Department of Energy a 
program to be known as the “Green Energy for Homes and Buildings 
Program”. 
 
(b) Eligibility Criteria. – 
(1) 
In General. – In administering the Program, the Secretary shall 
establish eligibility criteria for applicants for financial assistance 
under Subsection (C) who can offer financial products and 
programs consistent with the purposes of this Act. 
 
(2) 
Criteria. – The criteria for applicants shall consider – 
(i) 
the number and type of buildings that can be served by 
the applicant, the size of the potential market, and the 
scope of the program (in terms of measures or 
technologies to be used); 
(ii) 
the ability of the applicant to successfully execute the 
proposed program and maintain the performance of the 
proposed projects and investments; 
(iii) financial criteria, as applicable, including the ability of the 
applicant to raise private capital or other sources of funds 
for the proposed program; 
(iv) criteria that enable the Secretary to determine sound 
program design, including an assurance of credible energy 
efficiency or renewable energy generation performance, 
and financial product or program design that effectively 
reduces barriers posed by traditional financing programs; 


(v) 
the encouragement of the use of technologies that are 
either well-established or new, but demonstrated to be 
reliable; 
(vi) the availability of technical assistance in selecting and 
working with vendors to provide energy efficiency 
measures or on-site renewable energy generation systems; 
 
 
(3) 
Diverse Portfolio. – In establishing criteria and selecting 
applicants to receive financial assistance under Subsection (C), 
to the maximum extent practicable, the Secretary shall select a 
portfolio of investments that reaches a diversity of building 
owners, including – 
(i) 
individual homeowners; 
(ii) 
multifamily apartment building owners; 
(iii) condominium owners associations; 
(iv) commercial building owners, including multi-tenant 
commercial properties; and 
(v) 
industrial building owners. 
 
(c) Financial Assistance. –  
(1) 
In General. – For applicants determined to be eligible under 
criteria established under Subsection (B), the Secretary may 
provide financial assistance in the form of direct loans, letters of 
credit, loan guarantees, insurance products, other credit 
enhancements or debt instruments (including securitization or 
indirect credit support), or other financial products to promote 
the widespread deployment of, and mobilize private sector 
support of credit and investment institutions for, energy efficiency 
measures and on-site renewable energy generation systems in 
buildings. 
 
(2) 
To the maximum extent practicable and consistent with sound 
business practices, the Secretary shall seek to expedite reviews of 
applications for credit support under this Act in order to 
communicate to applicants in a timely manner the likelihood of 
support so that the applicants can seek private capital in order to 
receive final approval.  In carrying this out, the Secretary shall 
consider using clear guidelines that communicate to applicants 
what level of performance on eligibility criteria will ensure 
approval for credit support or resale. 
 
 


SECTION 5. General Accountability for the Program. –  
 
(a) Periodic Reports. – Not later than one year after the commencement of 
operation of the Program and at least biannually thereafter, the 
Secretary shall submit to the Committee on Energy of the Senate and 
the Committee on Energy of the House of Representatives a report that 
includes a description of the Program in meeting the purpose and goals 
established by or pursuant to this Act. 
 
(b) Audits by the Commission on Audit. – The programs, activities, receipts, 
expenditures, and financial transactions of the Program shall be subject 
to audit by the Commission on Audit. 
 
SECTION 6. Implementing Agency. – The Department of Energy shall 
implement the provisions of this Act. 
 
SECTION 7. Implementing Rules and Regulations. – Within sixty (60) 
days from the effectivity of this Act, the Department of Energy shall, in 
coordination with other stakeholders, issue the necessary rules and 
regulations for the effective implementation of this Act. 
 
SECTION 8. Separability Clause. – If, for any reason, any provision of this 
Act is declared unconstitutional or invalid, parts or provisions of this Act 
which are not affected shall continue to be in full force and effect. 
SECTION 9. Non-Impairment Clause. – Nothing in this Act shall be 
construed as to diminish, impair, or repeal rights recognized, granted, or 
made available to disadvantaged, marginalized, or specific sectors under 
existing laws. 
SECTION 10. Repealing Clause. – All laws, executive orders, presidential 
decrees, Implementing Rules and Regulations inconsistent with this Act are 
hereby repealed or modified accordingly. 
 
SECTION 11. Effectivity. – This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in two (2) newspapers of general 
circulation. 
 
Approved,