FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
<'.v, 
}'Fh_.~-" i,:, 
GfflCE Of' (Hi. Sf;CHE f/\llY 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
11ll 
SEP 20 
11'1 :37 
SEN~1:E 
's. No. 
~\)29 
RECEIVED !':IV: ~. 
Introduced by Senator Miriam Defensor Santiago 
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. 
Recent studies show that climate change is occurring faster than expected. Without 
resolute action we could face irreversible changes to the climate. I If emissions continue to rise at 
the rate of the past 30 years, atmospheric concentrations will increase to 700 ppm or more, 
corresponding to global average temperatures of +6°C or more by 2050.2 Even if we stopped 
emitting greenhouse gases altogether, the effects of global warming are now unavoidable. For 
these reasons, societies will need to adapt to the unavoidable consequences of climate change. 
Weather-related disasters disproportionately affect the agricultural sector in least 
developed countries where most farmers have only limited access to financial means such as 
micro credit and insurance solutions.3 The Philippines is considered a climate change hot spot 
vulnerable to sea-level rise, cyclones and storm surges which threaten social and economic 
stability particularly in densely populated urban centers such as Metro Manila.4 The twin 
typhoons and accompanying floods that wrecked havoc in the Philippines recently are clear 
manifestations of the high vulnerabili~y of the country to climate change.s Automobiles are a 
major source of greenhouse gases. A prime example is the United States where automobiles are 
1 Global Risks 2009, Global Risk Network, World Economic Forum, 2009. 
2 Intergovernmental Panel on Climate Change (IPCC) 2007 4th report; World Energy Outlook, 
International Energy Agency 2008. 
3Id. 
4 Climate Change and Migration in Asia and the Pacific, University of Adelaide, et ai, Asian Development 
Bank, 2009 
5 Francisco, Hermina, Going Beyond the Map: What is next in the Climate Change Challenge for the 
Philippines?, Economy and Environment Program for Southeast Asia, International Development Research Centre, 
Singapore, 2009. 
1 


the second largest source of carbon dioxide, creating nearly 1.5 billion tons of C02 annually.6 
The United Nations itself recognizes the need to promote innovation, clean energy, energy 
efficiency and conservation and to accelerate the deployment of cleaner technologies.7 
This brings us to the concept of electronic vehicles. Electric motors usually reach 90% 
energy conversion efficiency over the full range of speeds and power output and can be precisely 
controlled. They can also be combined with regenerative braking systems that have the ability to 
convert movement energy back into stored electricity. This can be used to reduce the wear on 
brake systems (and consequent brake pad dust) and reduce the total energy requirement of a trip. 
Regenerative braking is especially effective for start-and-stop city use. Electric vehicles give 
quiet and smooth operation and as a result have less vibration and noise than internal combustion 
engines. Electric vehicles release almost no air pollutants at the place of use. Moreover, it is 
generally easier to build pollution control systems into centralized power stations than retrofit 
enormous numbers of cars. Electric vehicles emit no tailpipe carbon dioxide or other pollutants 
at the point of use. 8 
This Bill seeks to address the problem of climate change by exempting the users of 
electronic vehicles or "e-vehicles" from the payment of the road user's tax. Electronic vehicles 
have zero emissions and their use by the greater public will be accelerated by the introduction of 
government incentives for their use. This will not just make us less dependent on oil, but will 
also address the detrimental effects to the environment and the health of our people caused by the 
emissions of the ubiquitous fuel-powered vehicles in the status quo. 
6 Natural Resources Defense Council, http://www.nrdc.org/globalwarmingIflOl.asp, accessed on 25 
August 2010. 
7 2005 World Summit Outcome of the United Nations General Assembly. 
• http://en.wikipedia.org/wiki/Electric vehicle, accessed on 17 September 2010. 
2 


I 
2 
3 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 
SEP' 20 r' 1 :31 
SEN~f 
S. No. 
;;,29 
AN ACT 
EXEMPTING THE USERS OF ELECTRONIC VEHICLES 
FROM THE PAYMENT OF THE ROAD USER'S TAX 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
4 
SECTION I. Short Title. - This Act shall be known as the "E-Vehicle Road User's Tax 
5 
Exemption Act of2010." 
6 
SECTION 2. Declaration of Policy. -It is the policy of the State to afford full protection 
7 
and the advancement of the right of the people to a healthful ecology in accord with the rhythm 
8 
and harmony of nature. In this light, the State has adopted the Philippine Agenda 21 framework 
9 
which espouses sustainable development, to fulfill human needs while maintaining the quality of 
10 
the natural environment for current and future generations. 
11 
As a party to the United Nations Framework Convention on Climate Change, the State 
12 
adopts the ultimate objective of the Convention which is the stabilization of greenhouse gas 
13 
concentrations in the atmosphere at a level that would prevent dangerous anthropogenic 
14 
interference with the climate system which should be achieved within a time frame sufficient to 
15 
allow ecosystems to adapt naturally to climate change, to ensure that food production is not 
16 
threatened and to enable economic development to proceed in a sustainable manner. 
3 


• ,< 
• 
, 
.. 
I 
SECTION 3. Definition of Terms. - As used in this Act, the following terms shall mean: 
2 
(a) e-vehicle - or electronic' vehicle shall refer to any vehicle that uses electric motors for 
3 
propulsion; This does not include motor vehicles propelled by gasoline or diesel engines or 
4 
hybrid motor vehicles that are powered by both fuel and electricity; 
5 
(b) emission - means any air contaminant, pollutant, gas stream or unwanted sound from a 
6 
known source which is passed into the atmosphere; 
7 
SECTION 4. Tax exemption. - Electric, hybrid and other alternative fuel vehicles shall be 
8 
exempted from the payment of the road user's tax . 
• 
9 
SECTION 5. Separability Clause. - If any provision, or part hereof is held invalid or 
10 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
II 
valid and subsisting. 
12 
SECTION 6. Repealing Clause. - Any law, presidential decree or issuance, executive 
13 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
14 
with, the provisions ofthis Act is hereby repealed, modified, or amended accordingly. 
15 
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
16 
publication in at least two (2) newspapers of general circulation. 
Approved, 
4