" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENAr.~ 
S.B. No. 
~151 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
·14 
MAR -3 AlO :29 
AN ACT PROVIDING INCENTIVES FOR THE MAINSTREAM USE, MANUFACTURE, ASSEMBLY AND 
CONVERSION OF ELECTRIC, HYBRID AND OTHER ALTERNATIVE FUEL VEHICLES AND FOR OTHER 
PURPOSES 
Explanatory Note 
According to the latest ASEAN State of the Environment Report (2009), "Southeast Asia is one of 
the world's most vulnerable regions to climate change impacts such as droughts, floods, typhoons, sea 
level rise, and heat waves.'" The growing impact of climate change has made it crucial for governments 
and the private sector throughout the ASEAN region to invest in climate change adaptation and 
mitigation efforts while providing economic opportunities to empower poor and vulnerable sectors. 
One big opportunity for the Philippines lies in the Alternative Fuel Vehicle (AFV) sector. 
According to a report released by international consulting firm Grant Thornton in 2012, "Asia is currently 
the largest market for hybirds/electrics (56%).'" Further: "The trend toward alternative fuels is visible in 
global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs), projected to reach 5.4 
million vehicles by 2021 (more than 6% of the automotive market), up from 810,000 vehicles in 2010 
(approximately 2% of market share).'" 
The same report states that, "Around a quarter of global companies (24%) have introduced or 
are considering vehicles that run on alternative fuels for their businesses ... Companies in the ASEAN 
region (31%) were mostlikely to use or consider alternative-fuel vehicles."4 
This regional trend is congruent with the Philippine government's moves to incentivize the 
manufacturing and use of AFVs. The Department of Energy's goal of putting 100,000 electric tricycles on 
the road by 2017 and the Electric Vehicles Association of the Philippines' (EVAP) goal of 1 million electric 
vehicles by 2020 represent key milestones toward dramatically reducing dependence on oil while 
ensuring that the Philippines leads in the growing electric vehicle manufacturing industry in the Asian 
region. 
Moreover, the integration of the ASEAN Economic Community in 2015 presents a key 
opportunity for the Philippines to emerge as a leader in this sector and cater to a regional market. This 
can very well pave the way for more investments, jobs, and livelihood opportunities to reach more 
Filipinos. 
In order to leverage on these potentials, we need stronger policy support to encourage 
investment in manufacturing facilities, enable technology demonstration and deployment, and provide 
incentives to promote the adoption of and drive consumer demand for electric, hybrid, and other 
alternative fuel vehicles. 
1 Letchumanan, IIClimate Change - ASEAN Experiences," 2009. Last accessed on February 26, 2014: 
http://ec.europa.eu/clima/events/0052/presentation_ramanJetchumanan_en.pdf 
, Grant Thornton, "Greener fleets: Companies consider alternative-fuel vehicles", 2012. 
'Ibid. 
4lbid. 


Thus, in order to bolster the benefits and the marketability of these vehicles, this Act provides 
non-fiscal incentives to drive consumer demand, including the following: 
a. 
Priority in registration and issuance of plate number; 
b. 
Priority in franchise application; 
c. 
Exemption from Unified Vehicular Volume Reduction Program (UVVRP) or Number-Coding 
Scheme; and 
d. 
Provision for free parking spaces in new establishments 
It is recognized that while the costs of electric and hybrid vehicles are higher compared to those 
of regular vehicles, these non-fiscal incentives will make the acquisition and conversion of vehicles more 
attractive to consumers and manufacturers alike. 
In the 15th Congress, both the Upper and Lower Houses of Congress passed on Third Reading 
similar measures entitled, "An Act Providing Incentives For The Manufacture, Assembly, Conversion And 
Importation Of Electric, Hybrid And Other Alternative Fuel Vehicles, And For Other Purposes." Clearly, 
Congress recognizes that the emerging industry of alternative fuel vehicles (AFVs) can significantly 
contribute to investmel)t generation, job creation, poverty reduction, and climate change mitigation. 
In view of the foregOing, the passage and enactment of this bill is earnestly sought. 
,.,,,., €f.:."~~:::. 
N 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Fi~st Regular Session 
SENATE 
S.B. No. 2151 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
'14 
MAR -3 1\10 :29 
AN ACT PROVIDING INCENTIVES FOR THE MAINSTREAM USE, MANUFACTURE, ASSEMBLY AND 
CONVERSION OF ELECTRIC, HYBRID AND OTHER ALTERNATIVE FUEL VEHICLES AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Electric, Hybrid and Other Alternative Fuel 
2 
Vehicles Promotions Act 0/2014". 
3 
SEC. 2. Declaration 0/ Policy. - It is the policy of the State to safeguard life and environment by 
4 
encouraging the use of alternative sources of energy for vehicles intended for public and private use. To 
5 
protect the well-being and promote the economic condition of the people as well as to promote energy 
6 
independence and security in the midst of development and innovation in technology, the following are 
7 
hereby declared: 
8 
A) It is the policy of the State to protect and advance the right of the people to a balanced and 
9 
healthful ecology in accord with the rhythm and harmony in nature. The State shall recognize 
10 
and address the detrimental effects on the environment, safeguard the welfare, and protect the 
11 
health of the people by improving air quality and by reducing the impact of greenhouse gas 
12 
effects emitted from man-made sources such as vehicles operating on fossil fuels. 
13 
B) The State supports the need to promote the development of new technology to accelerate 
14 
social progress and promote human development. The use of alternative sources of energy on 
15 
vehicles intended for public and private use is encouraged to promote innovation, energy 
16 
efficiency, security and conservation and to speed-up the deployment of cleaner technology. 
17 
C) The State recognizes the indispensable role of the private sector, encourages private enterprise, 
18 
and provides incentives to needed investments. To accelerate economic growth and generate 
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employment, the state shall provide incentives to private enterprises and individuals engaged in 
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the manufacture, assembly, conversion, and importation of electric, hybrid and other clean 
21 
energy vehicles. 
22 
SEC. 3. Definition a/Terms. As used herein, the following shall mean: 
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a) 
Electric Vehicle (EV) shall refer to any vehicle that uses electric motors solely for 
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propulsion. 
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b). Hybrid Vehicle (HV) shall refer to any vehicle that combines the technologies of using 
26 
internal combustion engine (ICE) with a battery-powered electric motor to gain 
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advantages of both propulsion systems. 
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c) 
Other Alternative Fuel Vehicles (AFV) shall refer to any vehicle using alternative fuel such 
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as but not limited to: solar, wind, hydrogen fuel cell, compressed natural gas (CNG) or 
30 
liquefied natural gas (LNG), methane and liquefied petroleum gas (LPG), other than 
31 
conventional sources of energy like petroleum and gasoline for propulsion. 


1 
d) Manufacturer ar Assembler shall mean any individual, partnership, corporation or other 
2 
entity engaged in the manufacture, assembly and conversion of electric, hybrid and 
3 
other alternative fuel vehicles incorporated, organized and existing under Philippine 
4 
laws. 
5 
e) Importer shall mean any individual, partnership, corporation or other entity engaged in 
6 
the importation of completely built units (CBUs) of electric, hybrid and other alternative 
7 
fuel vehicles incorporated, organized and existing under Philippine laws. 
8 
SEC. 4. Coverage. This Act shall cover electric, hybrid and other alternative fuel vehicles but 
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shall not include vehicles powered by gasoline, petroleum, bio-diesel and bio-ethanol. 
10 
SEC. 5. Creation of the Coordinating Council for Promotion of Electric, Hybrid and Other 
11 
Alternative Fuel Vehicles. - The Department of Trade and Industry (DTI) shall constitute a Coordinating 
12 
Council for Electric, Hybrid and Other Alternative Fuel Vehicles as a sub-committee under the Industry 
13 
Development Council (IDC), to expedite identification, prioritization, and resolution of issues affecting 
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the entire supply chain of the electric vehicle, hybrid and alternative fuel vehicle industry by formulating 
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a shared implementation plan and monitoring system. 
16 
SEC. 6. Composition a/the Council. - The council shall be composed of the following members: 
17 
a. 
Secretary, Department of Trade and Industry - Chairperson 
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b. Secretary, Department of Transportation and Communication - Vice-Chairperson 
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c. 
Secretary, Department of Energy - Vice-Chairperson 
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d. Secretary, Department of Finance - Member 
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e. 
Secretary, Department of the Interior and Local Government - Member 
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f. 
Secretary, Department of Science and Technology - Member 
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g. Three (3) Representatives from the Industry Sector to be elected by the Council 
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h. Three (3) Representatives from the Civil Society to be elected by the Council 
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Representatives from the other agencies of the government may be invited as resource persons 
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during the meetings of the Council. 
27 
SEC. 7. Duties and Responsibilities of the Council. - The Council shall have the following duties 
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and responsibilities: 
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1. 
Formulate incentives to address the high acquisition cost of electric vehicles, hybrid and other 
3'0 
alternative fuel vehicles and operating cost of supporting infrastructures particularly charging 
31 
stations. 
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2. 
Develop and recommend standards and specifications which address the performance, quality 
33 
and safety issues of electric vehicles, battery, charging stations and connectors, and repair and 
34 
maintenance in accordance with international standards. 
35 
3. 
Review and recommend appropriate classification for electric, hybrid and other alternative fuel 
36 
vehicles and the corresponding parameters for Motor Vehicle Inspection System (MVIS) 
37 
approval. 
38 
4. 
Review and recommend policy for allowing the entry of and promoting electric, hybrid and 
39 
alternative fuel vehicles fleet operations. 
40 
5. 
Recommend modalities for the utilization of the Special Vehicle Pollution Control Fund (SVPCF), 
41 
a special trust account managed by the Road Board created by virtue of Republic Act No. 8794 
42 
or any sources of funds to implement air quality improvement projects involving the use of 
43 
electric, hybrid and other alternative fuel vehicles. 


1 
6. 
Coordinate with local government units (LGUs) in identifying and allocating land and property 
2 
within their locality for use as public charging stations for electric or hybrid vehicles or refuelling 
3 
stations for alternative fuel vehicles. 
4 
7. 
Coordinate with the electric power industry stakeholders, particularly, the Energy Regulatory 
5 
Commission (ERe) and electric distribution utilities and cooperatives, in the preparation of their 
6 
electric systems and network to accommodate the connection of electric or hybrid vehicles, 
7 
charging equipment and stations. 
8 
8. Undertake Information and Education Campaign (lEe) on the proper use, maintenance, repair 
9 
and disposal of electric, hybrid and alternative fuel vehicles. 
10 
9. 
Monitor resolution of issues affecting the electric, hybrid and alternative fuel vehicle and 
11 
undertake action as may be determined by the Council. 
12 
13 
SEC. 8. Incentives to Manufacturers or Ass~mblers. - The provision of any special or general law 
14 
to the contrary notwithstanding, the manufacture or assembly of completely knocked-down (CKD) parts 
15 
of electric, hybrid and other clean energy vehicles, including the conversion of vehicles into electric, 
16 
hybrid and other clean energy vehicles, shall be exempt from the payment of excise taxes and duties for 
17 
nine (9) years from the effectivity of this Act. 
18 
The imposition of the Value Added Tax (VAT) for the purchase and importation of raw materials, 
19 
spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid 
20 
and other clean energy vehicles shall be suspended for nine (9) years from the effectivity of this Act. 
21 
SEC. 9. Incentives to Importers. - The provision of any special or general law to the contrary 
22 
notwithstanding, the importation of completely built units (CBUs) of electric, hybrid and other clean 
23 
energy vehicles shall be exempt from the payment of excise taxes and duties for nine (9) years from the 
24 
effectivity of this Act. 
25 
SEC. 10. Exemption from the Payment of Motor Vehicle User's Charge (MVUC) - Electric, hybrid 
26 
and other clean energy vehicles shall be exempt from the payment of the Motor Vehicle User's Charge 
27 
(MVUe) imposed by the Land Transportation Office (L TO) under Republic Act No. 8794, otherwise 
28 
known as "Motor Vehicle User's Charge (MVUe) Act" for nine (9) years from the effectivity of this Act. 
29 
30 
SEC. 11. Non-Fiscal Incentives to Users of Electric, Hybrid and Other Alternative Fuel Vehicles. 
31 
1. Priority in Registration and Issuance of Plate Number. - Registration and renewal of registration 
32 
of electric, hybrid and other alternative fuel vehicles shall be prioritized by thl! Land 
33 
Transportation Office (LTD) for nine (9) years from the effectivity of this Act. A special type of 
34 
vehicle plate to be prescribed by the LTD shall be exclusively issued to all electric, hybrid and 
35 
other alternative fuel vehicles upon registration. 
36 
2. Priority in Franchise Application. - Public Utility Vehicle (PUV) operators exclusively utilizing 
37 
electric, hybrid and other clean energy vehicles shall be granted priority by the Land 
38 
Transportation Franchising and Regulatory Board (LTFRB) in the approval of applications for 
39 
franchise to operate, including its renewal, for nine (9) years from the effectivity of this Act. 
40 
3. Exemption from Unified Vehicular Volume Reduction Program (UWRP) or Number-Coding 
41 
Scheme. - All electric, hybrid and other clean energy vehicles shall, for nine (9) years from the 
42 
effectivity of this Act, be exempted from the mandatory Unified Vehicular Volume Reduction 
43 
Program (UVVRP) or Number-Coding Scheme being implemented by the Metro Manila 
44 
Development Authority (MMDA) and other local government units (LGUs) concerned. 
45 
4. 
Provision for Free Parking Spaces in New Establishments. -
Business and commercial 
46 
establishments to be constructed after the effectivity of this Act are mandated to provide 


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exclusive parking spaces free of charge for all electric, hybrid and other alternative fuel vehicles. 
No building permit shall be issued for the construction of business and commercial 
establishments that include parking spaces unless the owner submits an affidavit that there shall 
be free parking spaces to be exclusively be designated for electric, hybrid and other alternative 
fuel vehicles for nine (9) years from the effectivity of this Act. 
SEC. 12. Implementatian and Monitoring. - The Department of Trade and Industry (DTI) shall 
be responsible for the administration and implementation of the non-fiscal incentives granted under this 
Act. 
Manufacturers, assemblers, converters and importers of electric, hybrid and other clean energy 
vehicles shall register with DTI in order to avail of the incentives provided under this Act. For proper 
monitoring, DTI shall meet regularly with the Department of Finance (DOF) to monitor and review the 
implementation of the incentives provided herein. 
SEC. 13. Administrative Support. The Department of Trade and Industry (DTI) shall provide 
overall administrative support to the Council by appropriating the corresponding budget needed for the 
effective implementation of this Act. 
SEC. 14. Implementing Rules and Regulatians. The Department of Trade and Industry (DTI) shall 
promulgate the necessary rules and regulations. 
SEC. 15. Separability Clause. - If any provision of this Act is declared unconstitutional or invalid, 
other parts or provisions hereof not affected thereby shall continue to be in full force and effect. 
SEC. 16. Repealing Clause. - All other laws, orders, issuances, circulars, rules and regulations or 
parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SEC. 17. Effectivity Clause. This Act shall take effect fifteen (15) days following its publication in 
at least two (2) newspapers of general circulation or the Official Gazette. 
Approved,