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Republic of the Philippines
House of Representatives
Quezon City

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SEVENTEENTH CONGRESS e ne

Second Regular Session _

7017

HOUSE BILL NO. __"_

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

The Philippines’ air pollution is at the critical level. Metro Manila alone records a
total suspended particulate (TSP) of 130-250 micrograms per normal cubic meter, way
above the World Health Organization's defined standard level of 90 micrograms per
normal cubic meter.

According to the Department of Environment and Natural Resources, around
80% of the air pollution in the country comes from motor vehicles.

While the country has enacted and implemented laws to help attain clean and
healthy air quality, this Representation finds the need to provide the citizens with an
mode of transportation in order to preserve the environment and the health

Thus, it is imperative for the State to promote, encourage, and support the
mainstream use of electric, hybrid, and other alternative fuel vehicles in order to
develop a transportation landscape that is one with the environment, ecologically and
economically.

In line of the foregoing, the passage of this bill is earnestly sought.


Republic of the Philippines
House of Representatives
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7017

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
PROMOTING THE MAINSTREAM USE 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
the Congress assembled:

SECTION 1. Title. - This Act shall be known as the “Electric, Hybrid and Other
Alternative Fuel Vehicles Promotions Act.”

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

a) Itis the policy of the State to protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony in
nature. The State shall recognize and address the detrimental effects on the
environment, safeguard the welfare, and protect the health of the people in
improving air quality and by reducing the impact of greenhouse gas effects
emitted from man-made sources such as vehicles operating on fossil fuels;

b) The State supports the need to promote the development of new technology
to accelerate social progress and promote human development. The use of
alternative sources of energy on vehicles intended for public and private use
is encouraged to promote innovation, energy efficiency, security and
observation and to speed-up the deployment of cleaner technology; and

3

The State recognizes the indispensable role of the private sector, encourages
private enterprise, and provides incentives to needed investments. To


accelerate economic growth and generate employment, the State shall provide
incentives to private enterprises and individuals engaged in the manufacture,
assembly, conversion, and importation of electric, hybrid and other clean
energy vehicles.

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

a) Electric Vehicle (EV) refers to any vehicle that uses electric motors solely
for propulsion.

db)

Hybrid Vehicle (HV) refers to any vehicle that combines the technologies
of using internal combustion engine (ICE) with a battery- powered electric
motor gaining advantages of both propulsion systems.

©)

Importer refers to any individual, partnership, corporation or other entity
engaged in the importation of completely built units (CBUs) of electric,
hybrid and other alternative fuel vehicles incorporated, organized and
existing under Philippine laws.

d) Manufacturer or Assembler refers to any individual, partnership,
corporation or other entity engaged in the manufacture, assembly and
conversion of electric, hybrid and other alternative fuel vehicles
incorporated, organized and under Philippine laws.

e)

Other Alternative Fuel Vehicles (AFV) refers to any vehicles using
alternative fuel such as but not limited to: solar, wind, hydrogen fuel cell,
compressed natural gas (CNG) or liquefied natural gas (LNG), methane and
liquefied petroleum gas (LPG), other than conventional sources of energy
like petroleum and gasoline for propulsion.

SEC.4. Coverage. This Act shall cover electric, hybrid and alternative fuel
vehicles but shall not include vehicles powered by gasoline, petroleum, and
gasoline for propulsion.

SEC. 5. Creation of Coordinating Council for Promotion of Electric, Hybrid
and Other Alternative Fuel Vehicles - The Department of Trade and Industry
(DTI) shall constitute a Coordinating Council for Electric, Hybrid and other
Alternative Fuel Vehicles as a sub-committee under the Industry Development
Council (IDC),to expedite identification, prioritization, and resolution of issues
affecting the entire supply chain of the electric vehicle, hybrid and alternative fuel
vehicle industry by formulating a shared implementation plan and monitoring
system.

SEC. 6. Composition of the Council. - The Council shall be composed of the
following members:


Secretary of Trade and Industry - Chairperson;

. Secretary of Transportation - Vice- Chairperson;

Secretary of Energy - Vice- Chairperson;

|. Secretary of Finance - Member;

Secretary of the Interior and Local Government - Member;
Secretary of Science and Technology - Member;

Three (3) Representatives from the Industry Sector to be elected
by the Council;

. Three (3) Representatives from the Civil Society to be elected by
the Council;

F erpaose

Representatives from the other agencies of the government may be invited
as resource persons during the meetings of Council.

SEC. 7. Duties and Responsibilities of the Council. - The Council shall
have the following duties and responsibilities:

1. Formulate incentives to address the high acquisition cost of electric
vehicles, hybrid and other alternative fuel vehicles and operating cost of
supporting infrastructures particularly changing stations;

2. Develop and recommend standards and specifications which address
the performance, quality and safety issues of electric vehicles, battery,
charging stations and connectors, and repair and maintenance in
accordance with international standards;

3. Review and recommend appropriate classification for electric, hybrid
and other alternative fuel vehicles and the corresponding parameters
for Motor Vehicle Inspection System (MVIS) approval;

4. Review and recommend policy for allowing the entry of and promoting
electric, hybrid and other alternative fuel vehicles fleet operation;

5, Recommend modalities for the utilization of the Special Vehicle
Pollution Control Fund (SVPCF), a special trust account managed by the
Road Board created by virtue of Republic Act No. 8794, or any sources
of funds to implement air quality improvement projects involving the
use of electric, hybrid and other alternative fuel vehicles;

6. Coordinate with the local government units (LGUs) in identifying and
allocating land and property within their locality for use as public
charging station for electric or hybrid vehicles or refueling stations for
alternative fuel vehicles;

7. Coordinate with the electric power industry stakeholders, particularly
the Energy Regulatory Commission (ERC) and electric distribution
utilities and cooperatives, in the preparation of their electric systems


and network to accommodate the connection of electric or hybrid
vehicles, changing equipment and stations;

8. Undertake Information and Education Campaign (IEC) on the proper
use, maintenance, repair and disposal of electric, hybrid and alternative
fuel vehicles; and

9. Monitor resolution of issues affecting the electric, hybrid and alternative
fuel vehicle and undertake action as may be determined by Council.

SEC. 8. Incentives to Users of Electric, Hybrid and Other Alternative
Vehicles.

a. Priority in Registration and Issuance of Plate Number. -
Registration and renewal of registration of electric, hybrid and
alternative fuel vehicles shall be prioritized by the Land
Transportation Office (LTO) for nine (9) years from the effectivity of
this Act. A special type of vehicle plate to be prescribed by the LTO
shall be exclusively issued to all electric, hybrid and other alternative
fuel vehicles upon registration;

b. Priority in Franchise Application. - Public Utility Vehicle (PUV)
operators exclusively utilizing electric, hybrid and other clean energy
vehicles shall be granted priority by the Land Transportation
Franchising and Regulatory Board (LTFRB) in the approval of
applications for franchise to operate, including its renewal, for nine (9)
years from the effectivity of this Act;

c. Exemption from Unified Vehicular Volume Reduction Program
(UVVRP) or Number Coding Scheme. - All electric, hybrid and other
clean energy vehicles shall, for nine years (9) from the effectivity of
this Act, be exempted from the mandatory Unified Vehicular Volume
Reduction Program(UVVRP) or Number Coding Scheme being
implemented by the Metro Manila Development Authority (MMDA)
and other local government units (LGUs).

d. Provision for Free Parking Spaces in New Establishments. -
Business and commercial establishments to be constructed after the
effectivity of this Act are mandated to provide exclusive parking spaces
free of charge for all electric, hybrid and 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 alternative fuel
vehicles for nine years (9) from the effectivity of this Act.


SEC. 9. Implementing Rules and Regulations. The Department of Trade
and Industry (DTD, in coordination with relevant government agencies, shall
promulgated the necessary rules and regulations within sixty (60) days after the
implementation of this Act.

SEC. 10. Monitoring. - The Department of Trade and Industry (DT!) shall be
responsible for the administration and Implementation of the non-fiscal incentives
granted under this Act.

SEC. 11. 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. 12. 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.13. Repealing Clause. - all other laws, order, issuances, circulars, rules
and regulations or parts thereof, which are inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SEC. 14. Effectivity Clause. This Act shall take effect fifteen (15) days
following its publications in at least two (2) newspapers of general circulation or the
Official Gazette

Approved,