Republic of the Philippines
HOUSE OF REPRESENTATIVES 2 ie \
Quezon City . 24 SEP 2014
\ tor fa
SIXTEENTH CONGRESS g
Second Regular Session

HOUSE BILL No,_5053

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 climate change vulnerability.
The public clamor to reduce electricity prices through the use of fossil fuels
aggravates the environmental impact of power generation. Unmet energy demand
adversely impacts on quality of life and the country’s competitiveness.

The Philippine Energy Plan (2012-2030) therefore mandates the
Department of Energy to ensure energy security and promote a low-carbon future,
among others. This policy thrust is consistent with the State Declaration to
encourage the efficient use of energy and other modalities of demand side
management.

‘As the Philippines continues to develop renewable energy sources and
increase energy supply to meet its growing needs, there is also a need to make sure
that energy supply is used in the most efficient manner possible. The National
Energy Efficiency and Conservation Program (NEECP) aims to achieve 10% energy
savings across energy demand sectors for the period 2012-2030.

The following sectors have posted 99% of total energy demand in the
country: transportation, residential, industry, and commercial sectors. A 10%
reduction in energy use across these sectors can result in 6,369 kilotons of oil
equivalent (KTOE) energy savings and 1,963 megawatts of deferred capacity in the
short term until 2016. In monetary terms, the avoided cost will translate to roughly
P255 billion (at P38.65/L of bunker fuel) and P173 billion pesos (at $2


million/MW). This also translates to 12.1 million tons of unreleased CO2, which can
mitigate climate change. Energy efficiency remains the most cost-effective means to
reduce greenhouse gas emissions from the energy sector.

The government should aim to make energy efficiency and conservation a
way of life to every Filipino. This can be achieved by strengthening institutions:
clarifying roles of government both national and local levels, defining obligations of
designated establishments, and expanding the pool of energy managers. There
should be a clear set of energy performance standards and labeling along with
appropriate incentives for significant capital investments. Finally, a market-driven
approach should be adopted to ensure sustainability and widespread
implementation.

Itis for this purpose that this bill is being proposed. In view of the foregoing,
the deliberation and early passage of this bill is urgently sought.

Lb. Atel

HENEDINA RAZON- ABAD


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 50 53

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:

CHAPTER I
GENERAL PROVISIONS
SEC. 1. Short Title. This Act shall be known as the “Energy Efficiency and

Conservation Act of 2014.”

SEC. 2. Policy Declaration. It is hereby declared the policy of the State to:

a) Institutionalize energy efficiency and conservation as a way of life geared
towards energy security by formulating, developing, and implementing
energy efficiency and conservation plans, programs and systems;

b

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

©

Promote and encourage the development and utilization of household
renewable energy technologies and systems to complement the energy

efficiency and conservation efforts;


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

sufficiency and sustainability in the country.

SEC. 3. Purpose. 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, unless the context indicates otherwise, have the following meanings:

a) 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 fitness in basic energy
management. A CECO shall be required for Type 1 Designated
Establishments;

b) Certified Energy Manager (CEM) refers to a Professional who becomes
eligible for this certification after demonstrating high levels of experience,

competence, proficiency and ethical fitness in advanced energy


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management. A CEM shall be required for Type 2 Designated
Establishments;

Demand Side Management refers to the reduction of energy
consumption, typically achieved through energy efficiency or load
management which results in the decrease of power demand or the
displacement of demand to off-peak times;

Designated Establishment (Type 1/Type 2 Designated Establishment)
refers to an entity in industrial, commercial, transport, and other electric
power consumers in the economy consuming energy and/or having other
index equivalent to such energy for the previous year beyond the level
specified by the Department of Energy (DOE). Such establishments shall
be categorized as Type 1 or Type 2 Designated Establishment, according to
the annual energy consumption schedule, as follows:

i. Type 1 equal or more than 1,000,000 (4,000,000 kilowatt hours of
electricity) but not more than 2,000,000 (8,000,000 kilowatt hours
of electricity) liters of Oil Equivalent (LOE), and

ii. Type 2 equal or more than 2,000,000 (8,000,000 kilowatt hours of
electricity) Liters of Oil Equivalent (LOE).

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


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used to achieve savings. The three types of energy audit are walk-through
audit, preliminary audit, and detailed audit;

g) Energy Conservation refers to the reduction of losses and wastage in
various energy stages from energy production to energy consumption
through adoption of appropriate measures that are technologically
feasible, economically sound, and environmentally and socially affordable;

h) 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, loss, and other status of
energy use. The items to be included in the Energy Consumption Report
shall be specified by the DOE;

i) Energy Efficiency refers to the technologically efficient utilization of
energy in its various forms through cost-effective options that result in the
use of less energy for the same or higher performance than regular
products or energy systems;

j) 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;

k) Energy Management refers to the process of administering and
monitoring energy utilization to ensure efficient consumption;

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

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

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


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

Minimum Energy Performance Standard refers to a performance
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, and industrial purposes;

National Sustainable Energy Efficiency and Conservation Coordinating
Officer refers to the person appointed by the leagues of the local

government units from among the local government's Energy Efficiency

Conservation and Sufficiency Officer (EECSO), and who shall be
responsible for integrating local energy efficiency, conservation and
sufficiency programs;

Office of Sustainable Energy Efficiency and Conservation (OSEEC) refers
to the office to be established in local government units headed by the
Energy 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 brand new passenger cars and other
light duty vehicles unless otherwise specified in this Act.

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

indicators to determine energy consumption;


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s) 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;

CHAPTER 2

ENERGY PERFORMANCE STANDARDS AND LABELING REQUIREMENTS

SEC. 6. Minimum Energy Performance Standards (MEPS). To ensure
appropriate and effective implementation of energy efficiency and conservation, all
energy-consuming products, including transport vehicles shall implement the

following measures:

a) Manufacturers, importers, distributors, and retailers of appliances, lighting
products, transport vehicles and other equipment shall comply with the
minimum energy performance standards and energy label requirements
set by the Department of Energy;

b) Manufacturers, importers, distributors, and retailers of appliances, lighting
products, transport vehicles and other equipment shall subject their

energy consuming products to energy performance testing.


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SEC. 7. High Energy Consuming Equipment and Devices. To ensure

appropriate and effective implementation of energy efficiency and conservation in
high energy consuming equipment and devices, manufacturers, importers, suppliers,
distributors and retailers engaged in selling the designated products shall provide
information such as energy performance and other information that shall contribute
to the general consumers’ awareness, knowledge, and actions. These information

shall be specified under the IRR.

SEC. 8. Energy Labeling Requirements for Products and Equipment. To
ensure appropriate and effective implementation of energy efficiency and
conservation, the following shall be implemented:

a) All energy consuming products, devices and, equipment shall have
Energy Label displayed.

b) Manufacturers, importers and suppliers shall provide information that
contributes to the general consumers’ awareness, knowledge and actions
towards energy efficiency and conservation.

©) Manufacturers, importers and suppliers shall submit product samples to

DOE for verification testing.

SEC. 9. Fuel Economy Performance for Road Transport Vehicles. To ensure
fuel efficiency for transport, vehicle manufacturers, importers, and dealers shall
comply with fuel economy performance labeling requirements set by the DOE. The

vehicle manufacturers, importers, and dealers shall provide technical information on


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fuel economy rating of the engine that will allow the consumer to make an informed
decision in choosing the vehicles for their use.

SEC. 10, Energy Performance in Buildings. To ensure appropriate and
effective implementation of energy efficiency and conservation for new and retrofit
buildings for commercial and institutional buildings (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. 12. Type 1 Designated Establishment. Establishments with an annual
energy consumption equal to or more than 1,000,000 Liters of Oil Equivalent (LOE)
(4,000,000 kilowatt hours) but less than 2,000,000 Liters of Oil Equivalent (LOE)
(8,000,000 kilowatt hours) 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)

industrial/manufacturing such as food and beverages, plastic, metal fabrication,


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chemical, and appliance; (c) transport such as railway, road transport, sea freight and
passenger vessel, air transport cargo and passenger vessel; and (d) power sectors
such as power generation and distribution utilities.

Type 1 Designated Establishments shall have the following obligations:

a) Employ one (1) Certified Energy Conservation Officer (CECO) and duly
notify the DOE of said CECO's appointment or separation as soon as
possible. The CECO shall manage the energy consumption of facilities,
equipment and devices, the improvement and implementation 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 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.


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f) 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 to or more than 2,000,000 Liters of Oil
Equivalent (LOE) (8,000,000 kilowatt hours) shall be categorized as Type 2
Designated Establishments and shall include the following sectors: (a) building sector
such as commercial, hotel, hospital, educational institutions, office and government
buildings; (b) industrial/manufacturing such as cement, mining, food and beverages,
electronic/semi-conductor, steel and metal, chemical, vehicle, appliance, glass,
plastic, and others; (c) transport such as railway, road transport fleet, sea freight and
passenger vessel, air transport cargo and passenger vessel; and (d) power sectors
such as power generating plants, and distribution and transmission utilities.

‘Type 2 Designated Establishments shall have the following obligations:

a) Employ one (1) Certified Energy Manager (CEM), and duly notify the DOE
of said CEM’s appointment or separation as soon as possible. The CEM
shall manage the energy consumption of facilities, equipment and devices,
the improvement and implementation 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;

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

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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;

°)

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) 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. 14. Other Establishments. Establishments with an annual energy
consumption equal to or more than 500,000 Liters of Oil Equivalent (LOE) (2,000,000
kilowatt hours) but less than 1,000,000 Liters of Oil Equivalent (LOE) (4,000,000
kilowatt hours) 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.


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CHAPTER 4
INCENTIVES FOR ENERGY EFFICIENCY AND CONSERVATION
SEC. 15. Fiscal Incentives. 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) Energy users or energy using entities shall be entitled to duty-free
importation of pioneering and technologically energy-efficient machinery,
equipment, vehicles, and materials within the first five years upon the
effectivity of this act; and

b)

The Department of Finance 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.

SEC. 16. Non-Fiscal Incentives. Establishments that will implement or are
implementing energy-efficient projects shall be entitled to the following non-fiscal
incentives:

a) Provision of awards and recognition for energy efficiency and
conservation best practices and successful energy-efficient projects
and products.

b) Provision of technical assistance from government agencies in the

development and promotion of energy-efficient technologies.

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SEC. 17. Financial Assistance. Government 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. 18. 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;

©) In consultation with the DTI-BPS, shall develop and review energy

performance standards (refer to Chapter 2 Section 6 on MEPS) of

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machinery and equipment, appliances, vehicles and other fucl-using
combustion equipment and electric devices, among others;

d) Require manufacturers, importers, and dealers to comply with the MEPS
and to display the Energy Label showing the energy requirement and
consumption efficiency of products on their packaging, and on the
products themselves;

e) In consultation with appropriate agencies and organizations, ensure
compliance with applicable and existing benchmarks for energy
performance in buildings and industries; and

f) 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, analysis and dissemination of data and information for

planning and policy-making.

SEC. 19. 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) Department of Education (DEPED). The DepEd shall promote energy
efficiency and conservation practices through its K-12 career advocacy
program.

b) 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

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°)

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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 DPWH, in
coordination with the DOE, shall be responsible in ensuring the
implementation of Guidelines on Energy Efficiency and Conserving Design in
Building as part of the National Building Code.

Department of Trade and Industry (DTI). The DTI 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

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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 GFis 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).

SDA,
in collaboration with CHED, DOST and other similar training and service
institutions shall develop a program/system for the Certification of Energy
Managers and Conservation Officers. It shall also ensure the promotion of
energy efficiency practices through its Technical Vocational Education and
Training (TVET).

Commission on Higher Education (CHED) and State Universities and
Colleges (SUCs). The CHED and SUCs shall integrate into the existing
engineering curriculum appropriate courses related to energy

management.

CHAPTER 6
ROLE OF LOCAL GOVERNMENT UNITS AND LEAGUES OF

LOCAL GOVERNMENT UNITS AND ELECTIVE OFFICIALS

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SEC. 20. 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 shall 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 IRR 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

SEC. 21. Certified Energy Manager (CEM) and Certified Energy
Conservation Officer (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 and
a set of competency standards, with clear assessment process and tools, and
certification for the determined competency, and undertaken by the prescribed

governance structure.


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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 22. 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. 23. 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)

Failure 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;

é

Willful refusal to an on-site inspection; and

f) Failure to submit energy audit report;

SEC. 24. Recommendation, Disclosure, and Order. Upon determination that

an establishment has committed any of the prohibited acts under Section 23 of this

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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 reports;

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.

SEC. 25. 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. 26. Penalties. The responsible officers and employees together with any
establishment or organization, 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.

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SEC. 27. Contingency Powers. Upon the recommendation of the Secretary of
Energy, in times of critical energy supply disruptions or imminent danger thereof, 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 sectors; and, the temporary closure of energy

intensive industries when deemed necessary.

SEC. 28, Appropriations. For the implementation of this Act, such sums as
may be necessary shalll 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

eneral Appropriations Act.

SEC. 29, 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. 30. 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.

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SEC. 31. Repealing Clause. All laws, presidential decrees, executive orders,
issuances rules and regulations, inconsistent with the provisions of this Act are

hereby repealed or modified accordingly.

SEC, 32. 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,

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