SEVENTEENTH CONGRESS 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
S E N A T E  
S. B. No. 
^
'17 
JUL 31 
PS ;09
(In Substitution of Senate Bill Nos. 30, and 525)
Prepared and subm itted jointly by the Committees on Energy; Ways and 
Means; Public Services and Finance, with S en ato rs Legarda, Binay, T rillanes 
_____________________ and G atchalian, as authors thereof_____________________
AN ACT
INSTITUTIONALIZING ENERGY EFFICIENCY AND CONSERVATION, 
ENHANCING THE EFFICIENT USE OF ENERGY, GRANTING INCENTIVES 
TO ENERGY EFFICIENCY AND CONSERVATION PROJECTS, AND FOR
OTHER PURPOSES
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assem bled:
CHAPTER I
GENERAL PROVISIONS
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SECTION 1. S h o rt T itle. -  This Act shall be known as the “Energy Efficiency
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and Conservation Act of 2017.”
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SECTION 2. D eclaration o f Policy. -  It is hereby declared the policy of the 
State to:
a) 
Institutionalize energy efficiency and conservation as a national way of life 
geared towards the efficient and judicious utilization of energy by 
formulating, 
developing, 
and 
im plementing 
energy 
efficiency 
and 
conservation plans and program s to secure sufficiency and stability of 
energy supply in the country, to cushion the im pact of high prices of 
imported fuels on local m arkets, and to protect the environm ent in support 
of the economic and social development goals of the country;


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b) Promote and encourage the development and utilization of efficient 
renewable energy technologies, system s, and other energy efficient practices 
to ensure optimal use and sustainability of the country’s energy resources;
c) Reinforce related laws and other statutory provisions for a comprehensive 
approach to energy efficiency, conservation, and sufficiency in the country; 
and
d) Ensure a m arket-driven approach to energy efficiency, conservation, 
sufficiency, and sustainability in the country.
SECTION 3. Scope. -  This Act shall establish a framework for introducing and 
institutionalizing fundam ental policies on energy efficiency and conservation, 
including the promotion of efficient and judicious utilization of energy, increase 
in the utilization of energy efficiency and renewable energy technologies, and 
the definition of responsibilities of various government agencies and private 
entities.
SECTION 4. D efinition of T erm s. -  For the purposes of this Act, the following 
term s shall have the following m eanings unless indicated otherwise;
a) C ertified Energy C onservation O fficer (CECO)-refers to a professional 
who obtains a certification as a CECO after dem onstrating high levels of 
experience, competence, proficiency, and ethical fitness in the energy 
m anagem ent profession, and who shall be responsible for the supervision 
and m aintenance of the facilities of Type 1 Designated Establishm ents for 
the proper m anagem ent of energy consum ption and such other functions 
deemed necessary for the efficient and judicious utilization of energy under 
this Act;
b) C ertified Energy M anagers (CEM)- refers to a licensed engineer who 
obtains a certification as a CEM after dem onstrating high levels of 
experience, competence, proficiency, and ethical fitness in the energy 
m anagem ent profession, and who shall be chosen by Type 2 Designated


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Establishm ents to plan, lead, m anage, coordinate, monitor, and evaluate 
the im plem entation of sustainable energy m anagem ent within their 
organizations;
c) D esignated E stab lish m en t -  refers to a private or public entity in the 
commercial, industrial, transport, power, agriculture, public works, and 
other sectors identified by the D epartm ent of Energy (DOE) as energy 
intensive industries based on their annual energy consum ption in the 
previous year or another annual index equivalent to such energy, the 
am ount of which is indicated in this Act and subject to adjustm ent by the 
DOE as it deems necessary;
d) D istribution U tility -refers to any electric cooperative, private corporation, 
government-owned utility, or existing local governm ent unit which has an 
exclusive franchise to operate a distribution system  including those whose 
franchise covers economic zones;
e) D epartm ent of Energy (DOE)- refers to the agency created through 
Republic Act No. 7638 or the D epartm ent of Energy Act of 1992 and whose 
functions were expanded by Republic Act No. 9136 or the Electric Power 
Industry Reform Act of 2001;
1) Energy -  refers to all types of energy available commercially including but 
not limited to 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;
g) Energy A udit- refers to the evaluation of energy consum ption and review of 
current energy cost to determ ine appropriate intervention m easures and 
efficiency projects in which energy can be judiciously and efficiently used to 
achieve savings. It can refer to a walk-through audit, a preliminary audit, or 
a det£iiled audit;
h) Energy A uditor -  refers to individuals or entities certified by DOE who have 
proven credibility and competence to conduct an Energy Audit: Provided,


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That the guidelines in the certification of Energy Auditors shall be developed 
by DOE upon consultation with stakeholders;
i) Energy C onservation- refers to the reduction of losses and wastage in 
various energy stages from energy production to energy consum ption 
through the adoption of appropriate m easures th at are technologically 
feasible, 
economically 
sound, 
environmentally-friendly, 
and 
socially 
affordable;
j) Energy C onsum ption and C onservation R eport- refers to the periodic 
report subm itted to the DOE by Type 
1 
and Type 2 Designated 
Establishm ents, and the Transm ission Utility with regard to the National 
Energy Efficiency 
Conservation Plan containing their, among others, 
energy consum ption, energy loss, and status of energy use: Provided, That 
the comprehensive contents of the report shall be specified by DOE;
k) Energy EfTiciency-refers to the way of m anaging and restraining the 
growth in energy consum ption resulting in the delivery of more services for 
the same energy input or the sam e services for less energy input;
l) Energy Efficiency and C onservation Office (EECO) -refers to the office to 
be established in local government units m andated to oversee and m onitor 
the implementation of each local government u n it’s Local Energy Efficiency 
and Conservation Plan;
m) Energy Efficiency and C onservation O fficer (EEC Officer)- refers to the 
head of the EECO responsible for overseeing the im plem entation of the 
Local Energy Efficiency and Conservation Plan at the local government level;
n) Energy E fficient P ro jects- refers to projects designed to reduce energy 
consum ption and costs by any improvement, 
repair, 
alteration, 
or 
betterm ent of any building or facility, or any equipm ent, fixture, or 
furnishing to be added to or used in any building, facility, or vehicle 
including the m anufacturing and provision of services related thereof:


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Provided, That these projects m ust be cost-effective and will lead to lower
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energy or utility costs during operation and m aintenance;
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o) Energy End-U sers- refers to all individuals and entities which consum e 
energy to include but shall not be limited to households, industrial and 
commercial 
custom ers, 
power 
plants, 
distribution 
utilities, 
and 
transm ission utilities;
p) Energy Labeling -refers to the Philippine Energy Standards and Labeling 
Program (PESLP) which requires m anufacturers to attach an energy label on 
their products to inform consum ers about the energy perform ance and 
efficiency of the product;
q) Energy M anagem ent-refers to the process of designing and implementing 
an optimal program of purchasing, generating, and consum ing various 
types of energy based on the end-user’s overall short-term  and long-term 
m anagem ent program, with due consideration of factors including costs, 
availability, economics, and environm ental impact;
r) Energy Service C om pany (ESCO)-refers to a juridical entity th at offers 
multi-technology services and goods towards developing and designing 
energy efficiency projects, delivering and guaranteeing energy savings, and 
ensuring cost-effective and optimal performance. The services include but 
are not limited to: energy supply and m anagem ent, energy financing, 
technical engineering expertise 
and 
consultancy, 
equipm ent 
supply, 
installation, operation, m aintenance, and upgrade, and m onitoring and 
verification of performance and savings. 
The goods include but are not 
limited to: lighting, m otors and drives, heating, ventilation, and air 
conditioning system s, building envelope improvements, and waste heat 
recovery, cooling, heating, or other usable forms of energy control systems;
s) Energy Sufficiency-refers to a condition where the quantity of the supply 
of energy is enough or sufficient to m eet the dem and, including the required 
reserves;


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t) G overnm ent Energy E fficiency P ro jects- refers to energy efficiency 
projects carried out by all government departm ents, government-owned and 
-controlled corporations (GOCCs), state colleges and universities, hospitals, 
and other instrum entalities of the government which have been evaluated 
and endorsed by the DOE for approval of the Inter-Agency Energy Efficiency 
and Conservation Committee created under this Act;
u) G overnm ent Energy M anagem ent Program  (GEMP) -  refers to the 
government-wide program to reduce the governm ent’s m onthly consum ption 
of electricity and petroleum  products through, among others, electricity 
efficiency and conservation, and efficiency and conservation in fuel use of 
government vehicles;
v) Local Energy Efficiency and C onservation Plan (LEECP) -  refers to a 
collaborative and m ulti-stakeholder comprehensive framework, governance 
structure, and program s for local energy efficiency and conservation with 
defined targets, feasible strategies, and regular m onitoring and evaluation: 
Provided, That it shall be aligned with this Act and the National Energy 
Efficiency and Conservation Plan;
w) Local G overnm ent U nits (LGUs)- refers to the government units created 
through Republic Act No. 7160;
x) M inim um  Energy Perform ance (MEP) -refers to a performance standard 
which 
prescribes a 
m inimum 
level of energy perform ance 
for the 
commercial, industrial, and transport sectors, and energy-consum ing 
products including but not limited to appliances, lighting, electrical 
equipm ent, machinery, and transport vehicles that m ust be met or exceeded 
before they can be offered for sale or used for residential, commercial, 
transport, and industrial purposes;
y) N ational Energy Efficiency and C onservation C oordinating O fficer
(NEECCO) -refers to the person appointed by the league of local government 
units from among all the EEC Officers of different local governm ents who 
shall be responsible for integrating all the Local Energy Efficiency and 
Conservation Plans;


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z) N ational Energy Efficiency and C onservation D atabase (NEECD)- refers 
to a centralized, comprehensive, and unified database on national energy 
consum ption, the application and use of energy efficient and renewable 
energy technologies, and other critical and relevant information to be used 
for evaluation, analysis, and dissem ination of data and information related 
to energy efficiency and conservation;
aa)N ational Energy E fficiency and C onservation Plan(NEECP)- refers to the 
national comprehensive framework, governance structure, and program s for 
energy efficiency and conservation with defined national targets, feasible 
strategies, and regular m onitoring and evaluation; Provided, That it is 
aligned with this Act and is a result of a collaborative and m ulti-stakeholder 
consultative process: Provided further, That it shall be regularly reviewed 
and revised as determ ined by the DOE;
bb) 
Philippine Q ualifications Fram ew ork (PQF) -refers to a national policy 
describing the levels of educational qualifications and sets of standards for 
qualification outcomes. 
It is a quality assured national system  for the 
development, recognition, and award of qualifications based on the 
standards of knowledge, skills, and values acquired in different ways and 
m ethods by learners and workers. It is an assessm ent-based qualification 
recognition which is com petency-based and labor m arket driven;
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cc) T ransport V ehicle- refers to transport vehicles, be it land, air, or sea
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regardless of size or weight classification;
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dd) 
Specific Energy C onsum ption (SEC)- refers to the energy consum ption 
volume required per unit, such as production volume, sales am ount, 
transportation kilometer, transportation tonne-kilom eter, floor space, and 
such other indicators relevant to energy consum ption; and
ee) T ransm ission U tility -  refers to any private corporation or government- 
owned utility, which has an exclusive franchise to operate the system  of 
wires for the conveyance of electricity through a high voltage backbone line.


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CHAPTER 2
ROLES AND RESPONSIBILITIES
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SECTIONS. Im plem enting Agency. -  The DOE shall be the lead government 
agency in the im plem entation of the provisions of this Act. It shall be 
responsible for the planning, formulation, development, im plem entation, 
enforcement, and m onitoring of energy m anagem ent policies and other related 
energy efficiency and conservation plans and program s. In addition to its 
existing m andate, the DOE shall also have the following powers and functions:
a) Spearhead the creation and update the development of the NEECP in 
coordination with pertinent government agencies, LGUs, and private 
corporations and organizations;
b) Develop a system of m onitoring the im plem entation of the NEECP, 
including the targets th at are established therein;
c) Develop and m aintain the NEECD, in coordination with and assisted by 
the Philippine Statistical Authority, to ensure efficient evaluation, 
analysis, and dissem ination of data and information for enforcement, 
planning, and policy-making purposes;
d) Lead the efforts to ensure compliance with the GEMP in accordance with 
the strategic direction provided by the Inter-Agency Energy Efficiency 
and Conservation Committee;
e) Develop, impose, and review the MEP enforced on m achinery and 
equipm ent, 
appliances, 
technologies, 
vehicles, 
and 
other 
energy­
consum ing 
equipm ent 
and 
electric 
devices, 
among 
others, 
in 
consultation with the D epartm ent of Trade and Industry -  B ureau of 
Philippine Standards, and p u rsu an t to C hapter 5, Section 13 of this Act;
0 Require m anufacturers, im porters, and dealers to comply with the MEP, 
and to display on the packaging and on their products the energy label 
showing the energy requirem ent and consum ption efficiency of such 
products;


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g) Periodically review and reclassify Designated Establishm ents as defined 
under this Act and p u rsu an t to its Implementing Rules and Regulations 
(IRR);
h) Enforce and ensure compliance with prescribed ratings standards for 
energy performance in buildings and industries, in coordination with 
pertinent government agencies;
i) Support LGUs on m atters related to energy efficiency planning and 
promotion, 
the 
preparation 
of their respective 
LEECPs, 
and 
its 
im plem entation through various local energy efficiency programs: 
Provided, That DOE shall provide LGUs with tem plates for reporting 
updates on the implementation;
j) Coordinate with the NEECCO for the integrated LEECP to ensure its 
consistency and alignm ent with the NEECP;
k) Consult with Energy End-Users to develop the appropriate m echanism  to 
effectively implement this Act: Provided, That such m echanism  shall, as 
m uch as practicable, redound to the direct benefit of the Energy End- 
user;
l) Initiate and m aintain collaborative efforts with the business sector, 
particularly the commercial, industrial, transport, and power sectors, to 
ensure compliance with this Act, and broaden and enhance their efficient 
and judicious utilization of energy;
m) Develop and undertake a national aw areness and advocacy cam paign on 
energy efficiency and conservation in partnership with business, 
academe, non-governm ent organizations, and other sectors;
n) Provide annual reports to Congress, indicating, among others, the status 
of im plementation of this Act at the national and local levels as well as 
cost effectiveness outcomes, and energy and environm ental im pacts 
resulting from the im plem entation of this Act;


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o) Impose and collect reasonable fees for accreditation and certification for 
services provided in this Act; and
p) Perform such other powers and functions as may be necessary to attain 
the objectives of this Act.
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SECTION 6. Role of O ther G overnm ent A gencies. -  All government agencies 
including GOCCs shall ensure the efficient use of energy in their respective 
offices, facilities, transportation units, and in the discharge of their functions. 
In addition, the following agencies shall exercise the responsibilities and 
functions as enum erated hereunder:
a) Board of Investm ents (BOI) -  The BOI shall include Energy Efficient 
Projects as defined in this Act in the annual investm ent priorities plan 
entitled to incentives provided under Executive Order No. 226 or the 
Om nibus Investm ent Code of the Philippines and any other applicable 
laws;
b) Climate Change Commission (CCC) -  The CCC shall collaborate with the 
DOE and other government agencies in establishing targets, determ ining 
strategies, and monitoring and recording all greenhouse gas emission 
reductions resulting from energy efficiency and conservation projects: 
Provided, That such targets and strategies are aligned with the NEECP;
c) Commission on Audit (COA) - The COA shall recognize Government 
Energy Efficiency Projects as defined under this Act consistent with 
government accounting and auditing rules;
d) Commission on Higher Education (CHED) -  The CHED shall integrate 
into existing engineering curricula appropriate courses related to energy 
m anagem ent. It shall also promote energy efficiency m easures in higher 
education institutions including state colleges and universities;
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e) D epartm ent of Budget and M anagement (DBM) -  The DBM shall give due 
preference to funding Government Energy Efficiency Projects as defined 
under this Act;
f) D epartm ent of Education (DepEd) -  The DepEd shall promote energy 
efficiency and conservation practices through its K-12 career advocacy 
program;
g) D epartm ent of Finance (DOF) -  The DOF, in coordination with the DOE 
and other concerned agencies, shall draw up appropriate m echanism s to 
implement the fiscal incentives under this Act;
h) D epartm ent of Environm ent and Natural Resources (DENR) -  The DENR, 
in coordination with the DOE and D epartm ent of Interior and Local 
Government, shall establish guidelines for the accurate characterization 
of w astes arising from energy-consum ing devices, equipm ent, fixtures, 
and other relevant items, including the end-of-life of vehicles and its 
component parts: Provided, That such guidelines will include appropriate 
containm ent features and m anagem ent of hazardous w astes, consistent 
with Republic Act No. 6969 or the Toxic Substances and Hazardous and 
Nuclear W astes Control Act of 1990;
i) D epartm ent of Interior and Local Government 7(DILG) -  The DILG shall, 
in coordination with the DOE, be responsible in ensuring compliance of 
all LGUs in implementing the provisions of this Act;
j) D epartm ent of Public Works and Highways (DPWH) -  The DPWH shall, in 
coordination 
with 
the 
DOE, 
be 
responsible 
for 
ensuring 
the 
im plementation of the Guidelines on Energy Conserving Design of 
Buildings and Utility System s as an integral part of the Roadway Lighting 
Guidelines, and such other related guidelines as may be issued by the 
DOE, and in accordance with Republic Act No. 6541 or the National 
Building Code of the Philippines and other related laws;
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k) D epartm ent of Science and Technology (DOST) -  The DOST shall, in 
coordination with the DOE, be responsible for carrying out strategic 
research 
and 
development 
program s 
aimed 
at 
facilitating 
the 
development of new and alternative energy efficient technologies and the 
promotion thereof;
l) D epartm ent of Trade and Industry (DTI) -  The DTI, through the Bureau 
of Philippine Standards, shall, in consultation with the DOE, require 
m anufacturers, im porters, and dealers to comply with the MEP, and to 
display the energy label a n d /o r the energy efficiency label showing the 
energy requirem ent and consum ption efficiency of such products on the 
packaging and on the products themselves;
m) D epartm ent of Transportation (DOTr) -  The DOTr shall, in coordination 
with the DOE and the DENR, be responsible for ensuring compliance of 
vehicle owners, m anufacturers, and im porters with the MEP for 
transport vehicles consistent with the specifications for all types of fuels 
prescribed under Republic Act No. 8749or the Clean Air Act of 1999, and 
to display the energy consum ption label in coordination with the vehicle 
m anufacturers, transport industry associations, public transport groups, 
and non-governm ent organizations. The DOTr shall also assist the DOE 
in the enforcem ent of and compliance with m easures under this Act and 
its 
implementing 
rules 
and 
regulations 
relative 
to 
the 
energy 
consum ption of the transport sector.
n) Governance Commission for GOCCs (GCG) -  The GCG shall incorporate 
energy efficiency as a factor in evaluating the performance of GOCCs;
o) Government Financial Institutions (GFIs) -  The GFIs shall set aside 
lending funds for Energy Efficient Projects at concessional rates of 
interest to attract private sector investm ents. The GFIs, in collaboration 
with the Insurance Commission, 
shall ensure the availability of 
compatible guarantee or insurance products that would mitigate credit 
risks associated with energy efficiency investm ents in small and 
medium-sized enterprises and perform ance risks related to energy
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efficiency solutions developed by ESCOs, engineering com panies, and 
other technology providers;
p) Insurance Commission (1C) -The IC in collaboration with the GFls shall 
ensure the availability of compatible guarantee products th at would 
mitigate the credit risks associated with energy efficiency investm ents in 
small and medium-sized enterprises and perform ance risks related to the 
energy efficiency solutions developed by ESCOs, engineering companies, 
and other technology providers;
q) National Competitiveness Council (NCC) -  The NCC shall serve as the 
focal point for private sector involvement in the im plem entation of this 
Act in recognition of the potential of energy efficiency as a tool for 
improving the competitiveness of businesses in the country;
r) Philippine Statistics Authority (PSA) -  The PSA shall, in coordination with 
the DOE, institutionalize the household energy consum ption survey, the 
survey of energy consum ption of establishm ents, and other surveys 
relating to energy supply, dem and, efficiency, and conservation, and 
assist the DOE in the establishm ent of the NEECD as provided under 
this Act; and
s) Technical Education Skills Development Authority (TESDA) -  The TESDA 
shall, in collaboration with the DOE, CHED, DOST, and other training 
and service institutions, shall develop Training Regulations for the 
Certifications 
of 
Energy 
M anagers 
and 
Energy 
Efficiency 
and 
Conservation Officers. It shall also ensure the promotion of energy 
efficiency practices and renewable technologies through its Technical 
Vocational Education and Training Programs. TESDA shall im plement 
skills training, assessm ent, and certification program s for m echanics, 
technicians, installers, and operators of energy efficient, as well as 
renewable energy systems.
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SECTION 7. Role of Local G overnm ent U nits. -  The LGUs through their 
respective EECOs and Planning and Development Offices/Units, with the 
assistance of the DOE and in coordination with the DILG, shall develop and 
implement their respective LEECP and incorporate these in their local 
development plans.
Furtherm ore, the LGUs shall assist the DOE in m onitoring compliance with the 
obligations of Designated Establishm ents under this Act for input in the 
NEECD.
SECTION 8. Role of Energy End-Users. -  All Energy End-Users shall use 
every available energy resource efficiently and promote the development and 
utilization of new and alternative energy efficient technologies and system s, 
including renewable energy technologies, in compliance with the declared 
policies of this Act.
CHAPTER 3
INTER-AGENCY ENERGY EFFICIENCY AND 
CONSERVATION COMMITTEE
SECTION9. Inter-A gency Energy Efficiency and C onservation C om m ittee 
(C om m ittee). -An Inter-Agency Energy Efficiency and Conservation Committee 
is hereby created to approve Government Energy Efficiency Projects as defined 
under this Act and to provide strategic direction in the im plem entation of the 
GEMP.
The Committee shall be composed of the following members;
a) Secretary of the DOE;
b) Secretary of the DBM;
c) Secretary of the DOF;
d) Secretary of the DTI;
e) Secretary of the DOTr;
1) Secretary of the DPWH;
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g) Director General of the National Economic Development Authority 
(NEDA); and
h) Two 
(2) 
representatives 
from 
the 
private 
sector 
who 
shall 
be 
recommended by the Secretary of the DOE and chosen by the other 
m em bers of the Committee: Provided, That the said representatives are 
actively involved in prom oting energy efficiency and conservation: 
Provided further, That the said representatives shall serve for a term  of 
three (3) years.
The Secretary of the DOE shall serve as the Chairperson of the Committee and 
the Energy Efficiency and Conservation Public Sector M anagem ent Division of 
d o e ’s Utilization M anagement Bureau (EUMB), as defined in this Act, shall 
serve as the Committee’s Secretariat.
SECTION 10. Powers and D u ties.- The Committee shall have the following 
powers and duties:
a) To prepare an annual assessm ent of opportunities for energy cost 
reduction in state-owned and leased buildings and facilities designated 
by the Committee: Provided, That each assessm ent shall be completed 
each year: Provided further, That the assessm ent shall be available to the 
public: Provided finally. That the assessm ent shall include:
1. Data for the preceding five (5) years on energy consum ption and costs 
including anticipated energy consum ption and cost projected for the 
next three (3) years for each building and facility designated by the 
Committee;
2. Energy conservation m easures deployed in buildings and facilities 
designated by the Committee during the preceding year;
3. Evaluation studies of the cost reductions and other benefits realized 
through the deployment of energy conservation m easures; and
4. Energy 
conservation 
opportunities 
based 
on 
audits, 
technical 
analyses, or other m ethods of determ ining such opportunities and 
associated energy saving operations and m aintenance procedures
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and capital projects for each building or facility designated by the 
Committee.
b) To review all proposed capital projects and energy cost operating budgets 
of agencies designated by the Committee and recommend energy 
conservation m easures which would reduce operating costs in buildings 
or facilities;
c) To provide any officer or entity of government, technical and consultative 
assistance concerning energy cost m anagem ent or conservation;
d) To annually recom mend specific operations and m aintenance procedure 
modifications and capital projects for state-owned and leased buildings 
and facilities designed to reduce energy consum ption and costs;
e) To conduct surveys, audits, technical analysis, and other research or 
investigations related to Government Energy Efficiency Projects and the 
GEMP as may be necessary to support the preparation of the NEECP and 
the objectives of this Act;
f) To issue a report describing the status of Government Energy Efficiency 
Projects and the GEMP, listing obstacles to building energy efficiency 
improvement together with related recom m endations for statutory 
change, and identifying opportunities for public sector energy cost 
reductions not addressed by this Act or the program s developed 
p ursuant hereto; and
g) To develop, after study of existing or emerging energy conservation 
technologies, guidelines as may be necessary or desirable to aid the work 
of the Committee in furtherance of the objectives of this Act.
CHAPTER 4
CERTIFICATION FOR PROFESSIONAL COMPETENCY AND 
ACCREDITATION FOR PROFESSIONAL SERVICES
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SECTION 11.C ertified Energy C onservation OfTicer (CECO) and C ertified 
Energy M anager (CEM). -A system for the certification and assessm ent of 
energy conservation officers and energy m anagers shall be established towards 
raising the professional standards of those engaged in energy m anagem ent.
The CECO certification system  shall be developed by DOE and TESDA. It shall 
be based on an approved scope of practice, a set of competency standards with 
a clear assessm ent and certification process, and a certification for the 
determined competency undertaken by the prescribed governance structure 
and quality assurance system s and aligned with the PQF and applicable 
international standards. 
Towards this end, TESDA shall conduct training, 
assessm ent, and certification of workers for PQF qualification levels 1 to 5, and 
shall register Technical Vocational Education and Training program s including 
th at of non-profit organizations and other private training institutions. TESDA, 
in coordination with the DOE, shall develop guidelines for this purpose.
The CEM certification and assessm ent system  for registered engineers shall be 
established by CHED. 
Towards this end, CHED shall offer professional 
certificate program s for energy m anagers and, in coordination with the DOE 
and 
TESDA, 
shall 
develop 
undergraduate, 
graduate, 
and 
professional 
certificate 
program s 
on 
energy 
m anagem ent 
to 
ensure 
availability 
of 
competencies and skills required to promote and achieve the country’s 
sustainable energy goals. CHED, in coordination with the DOE, shall develop 
guidelines for this purpose.
SECTION 12. A ccreditation of Energy Service C om pany (ESCO).- The DOE
shall strengthen the existing ESCO accreditation system to develop this service 
sector and to provide the m arket with a source of technically and financially 
capable entities that can assist in the delivery of energy efficiency-related 
projects.
ESCOs applying for accreditation m ust dem onstrate their technical and 
m anagerial competence to design and im plem ent energy efficiency projects, 
including but not limited to:
(a) Energy Audits;
(b) Design Engineering;
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(c) Providing or arranging project financing;
(d) Construction M anagement;
(e) Operations and M aintenance of Energy Efficiency Technologies; 
and
(f) Verifying Energy Savings.
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CHAPTER 5
ENERGY PERFORMANCE STANDARDS AND 
LABELING REQUIREMENTS
SECTION 13. M inim um  Energy Perform ance (MEP). -  The MEP for the
commercial, industrial, and transport sectors shall be developed by the DOE, 
in consultation with relevant stakeholders, and guided by a cost-benefit 
analysis which shall be completed by the DOE with the assistance of the NEDA 
within one (1) year from the effectivity of this Act: Provided, That the adoption 
and enforcement of the MEP shall form part of the NEECP.
The MEP for energy-consum ing products through a particular product 
requirem ent under the PESLP shall also be developed by the DOE in 
consultation with relevant stakeholders involved in the m anufacturing, sale, 
and use of the products covered. 
The DOE shall also develop the energy 
performance testing guidelines for all energy-consum ing products to ensure 
compliance with the MEP.
All m anufacturers, im porters, distributors, and retailers of energy-consum ing 
products shall comply with the MEP, subject their energy-consum ing products 
to energy performance testing, and subm it their respective product information 
to the DOE.
No m anufacturer, importer, distributor, and retailer shall sell, lease, or im port 
any energy-consuming product, unless the product complies with the MEP and 
the product or its package is labeled in accordance with this Act.
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SECTION 14. Energy Labeling for P roducts and E quipm ent. -The DOE shall
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prescribe energy labels for all energy-consum ing products, devices, and
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equipm ent. 
M anufacturers, im porters, suppliers, distributors, and retailers 
engaged in selling these products, devices, and equipm ent shall ensure that 
these energy labels are displayed accordingly, and shall provide information 
th at will assist consum ers to m ake informed decisions on these products: 
Provided, That they shall ensure the integrity of the information subm itted and 
made available to the public: Provided further, That the DOE shall define the 
nature and scope of the information to be provided.
The DOE shall also develop and enforce a M andatory Energy Efficiency Rating 
and Labeling System (MEERLS) for identified energy-consum ing products, such 
as, but not limited to, room air conditioners, refrigeration units, and television 
sets, to promote energy efficient appliances and raise public aw areness on 
energy saving. The energy efficiency label, at the m inim um, shall reflect the 
energy efficiency rating of the product,the m onthly energy consum ption based 
on a specified hour of daily usage, the brand nam e and product model, and the 
year the energy rating was issued: Provided, That the calculation m ethod of the 
energy efficiency rating shall be m ade available to the public and shall be 
updated as often as necessary to ensure the integrity of the labeling system: 
Provided further. That the calculation of the energy efficiency rating shall be 
contained in the Code of Practice on Energy Labeling of Products to be 
developed by the DOE.
SECTION 15. Energy P roduct, Device, and E quipm ent E xam ination, 
T esting, and V erification. -The DOE shall regularly select energy-consum ing 
products and their models for exam ination, testing, and verification. As such, 
the DOE may require any m anufacturer, importer, supplier, distributor, or 
retailer of energy-consuming products, devices, and equipm ent to m ake 
available, at such place as the DOE may specify, such num ber of products as 
the DOE considers to be reasonably necessary for exam ination and testing 
under this Section.
The DOE is authorized to dism antle and examine the energy-consum ing 
product, device, or equipm ent referred herein, to determ ine the product’s 
energy efficiency. Such products, upon completion of testing, shall be returned 
by the DOE to the concerned m anufacturer, importer, supplier, distributor, or 
retailer, unless the DOE has reasonable grounds to believe that any provision 
of this Act was violated and the product will serve as evidence of the violation.
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The DOE, subject to procurem ent laws and regulations, may procure the 
services of or enter into an agreem ent or other arrangem ent with a qualified 
supplier or entity to carry out the exam ination and testing of energy­
consum ing products. The DOE, in the engagem ent of a qualified supplier or 
entity to carry out the exam ination and testing of energy-consum ing products, 
shall follow the process and procedures laid down in Republic Act No. 9184 or 
the Government Procurem ent Reform Act and its revised implementing rules 
and 
regulations 
except 
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engagem ent 
involves 
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contractual 
arrangem ent under a Public Private Partnership covered by Republic Act No. 
6957 or An Act Authorizing the Financing, Construction, Operation and 
M aintenance of Infrastructure Projects by the Private Sector and For O ther 
Purposes, as am ended by Republic Act No. 7718, or through a Joint Venture 
Agreement with private entities under a profit sharing schem e under the 2013 
NEDA Joint Venture Guidelines as may be am ended in the future.
SECTION 16. Fuel Econom y Perform ance for T ransport V ehicles. -  To
ensure fuel efficiency for transport, vehicle m anufacturers, im porters, and 
dealers shall comply with fuel economy performance labeling requirem ents set 
by the DOE with the assistance of the DENR and DOTr. The vehicle 
m anufacturers, im porters, and dealers shall provide technical information on 
the fuel economy rating of the engine that will allow the consum ers to m ake an 
informed decision in choosing the vehicles for their use.
The DOE shall develop and conduet fuel efficiency testing guidelines for the 
conduct of fuel efficiency tests to validate the information provided by vehicle 
m anufacturers, importers, and dealers.
SECTION 17. Energy Perform ance for Buildings. -  To ensure appropriate 
and effective im plementation of energy efficiency and conservation for new and 
existing buildings for commercial and institutional use such as, but not limited 
to, hospitals, educational facilities, exhibition centers, governm ent offices and 
military facilities, the LGUs shall im plem ent the following m easures in 
accordance with building perm it issuances:
a) 
New 
building 
construction 
shall 
comply 
with 
the 
minim um  
requirem ents as specified in the Guidelines on Energy Conserving Design on
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Buildings issued by the DOE, in consultation with the DPWH: Provided, That 
state-owned buildings and facilities shall comply with the GEMP and such 
other guidelines issued by the Committee; and
b) 
Retrofit 
of 
buildings 
shall 
also 
comply 
with 
the 
m inim um  
requirem ents as specified in the Guidelines on Energy Conserving Design on 
Buildings issued by the DOE, in consultation with the DPWH: Provided, That 
state-owned and leased buildings and facilities shall comply with the GEMP 
and such other guidelines issued by the Committee.
CHAPTER 6
DESIGNATED ESTABLISHMENTS
SECTION 18. D esignated E stablishm ents. -  Designated Establishm ents shall 
initially be classified as follows:
a) Type 1 Designated Establishm ents are those with an annual energy 
consum ption of 500,000 kilow att-hours (kWh) to 4,000,000 kWh for the 
previous year; and
b) Type 2 Designated Establishm ents are those with an annual energy 
consum ption of more than 4,000,000 kWh for the previous year.
The thresholds for determ ining Type 1 or Type 2 Designated Establishm ents 
shall be periodically reviewed and adjusted, if deemed necessaiy, by the DOE.
SECTION 19.O bligations of D esignated E stab lish m en ts.- The Designated 
Establishm ents shall have the following obligations:
a) Integrate an Energy M anagem ent System Policy into the business 
operation based on ISO 50001 or any sim ilar framework;
b) Set up program s to develop and design m easures th at promote energy 
efficiency, conservation, and sufficiency that may include, but are not limited 
to, installation of renewable energy technologies;
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c) Set up annual targets, plans, and m ethods of m easurem ents and 
verification for the im plem entation of energy efficiency and conservation 
projects;
d) Keep records on monthly energy consum ption data and other energy- 
related data;
e) Improve average SEC in accordance with the annual reduction targets 
to be established by the DOE in the NEECP;
f) Subm it an Annual Energy Consum ption and Conservation Report to 
the DOE by the IS11' of April of every year;
g) Conduct an Energy Audit once every three (3) years, by engaging 
either a certified Energy Auditor or an accredited ESCO and subm it an Energy 
Audit Report to the DOE upon completion of the Energy Audit;
h) Employ a CECO for Type 1 Designated Establishm ents, and a CEM 
for Type 2 Designated Establishm ents: Provided, That the CECO and the CEM 
may be chosen from within the organization or hired through external 
recruitm ent; and
i) 
Duly notify the DOE on the appointm ent or separation from the 
service of their respective CECOs or CEMs within 10 working days from the 
effectivity of these personnel action.
SECTION 20. R esponsibilities of th e C ertified Energy C onservation Officer 
and th e C ertified Energy M anager. -  The CECO and the CEM, in their 
respective Designated Establishm ents, shall:
a) Manage the energy consum ption of facilities, equipm ent, and devices;
b) Administer the following:
i. Im plementation and improvement of energy efficiency m easures,
ii. Conduct of regular Energy Audit,
iii. Energy monitoring and control, and
iv. Preparation of periodic energy consum ption and energy conservation
program reports; and
c) Fulfill other responsibilities as indicated in this Act.
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SECTION 21. O ther E stab lish m ents. -  Establishm ents with an annual energy 
consum ption of at least 100,000kW h but less than 500,000 kWh in the 
previous year shall be required to subm it an annual energy consum ption 
report to the DOE and integrate an Energy M anagem ent System policy into 
their business operations based on ISO 50001 or any similar framework or 
such other standard identified by the DOE: Provided, That the thresholds 
indicated herein shall be periodically reviewed and adjusted, if deemed 
necessary, by the DOE. 
These establishm ents may, on a voluntary basis, 
subm it them selves to external Energy Audit or quality control assessm ent to 
assist them  in their energy planning and m anagem ent.
SECTION 22. V isitorial Pow ers and O n-Site Inspections. -  The DOE shall 
have the authority to visit Designated Establishm ents to inspect energy­
consum ing facilities, evaluate energy m anagem ent system s and procedures, 
identify areas for efficiency improvement, and verify energy m onitoring records 
and reports and other docum ents related to the compliance requirem ents of 
this Act within office hours and in the presence of an authorized representative 
of the Designated Establishm ent.
CHAPTER 7
DEMAND SIDE MANAGEMENT
SECTION 23. D em and Side M anagem ent (DSM). -The DOE with the 
assistance of the Energy Regulatory Commission and the Philippine Economic 
Zone Authority, shall pursue a DSM program for the electric power industry for 
the reduction of energy consum ption through effective load m anagem ent 
resulting to the decrease of power dem and and the migration of power dem and 
from peak to off-peak periods or such m easures undertaken by distribution 
utilities to encourage end-users to properly m anage their loads to a reduction 
of energy consum ption through effective load m anagem ent resulting to the 
decrease of power dem and and the migration of power dem and from peak to 
off-peak periods or such m easures undertaken by distribution utilities to 
encourage end-users to properly m anage their loads to achieve efficiency in the 
utilization of fixed infrastructures in the system s.
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CHAPTER 8 
INCENTIVES
SECTION 24. Fiscal In ce n tiv e s.- Upon certification by the DOE, Energy 
Efficient Projects as defined in this Act shall be included in the annual 
investm ent priorities plan of the BOI and shall be entitled to the incentives 
provided under Executive Order No. 266 or the O m nibus Investm ent Code of 
the Philippines and any other applicable laws.
SECTION 25. Non-Fiscal Incentives. -  Establishm ents that will im plement or 
are implementing energy-efficient projects shall be entitled to the following:
a) Provision 
of aw ards 
and 
recognition 
for 
energy 
efficiency 
and 
conservation best practices innovation, and successful energy-efficient 
projects and products; and
b) Provision of technical assistance from government agencies in the 
development and promotion of energy-efficient technologies.
SECTION 26. Financial A ssistance. -  GFIs 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 recom mended and endorsed by 
the DOE.
CHAPTER 8
MISCELLANEOUS PROVISIONS
SECTION 27. W aste M anagem ent C ollection R ecycling and D isposal 
G uidelines. -  The DENR, in coordination with the DOE and the DILG, will 
establish guidelines for the accurate characterization of w astes arising from 
energy-consuming devices, equipm ent, fixtures, and other relevant items, 
including end-of-life vehicles and their com ponent parts. Such guidelines will 
include appropriate containm ent features and m anagem ent m easures for 
hazardous wastes, consistent with Republic Act No. 6969 or the Toxic 
Substance and Hazardous and Nuclear W astes Control Act.
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A W aste M anagement Collection, Recycling and Disposal Strategy (WMCRDS)
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will also be developed by DOE, DENR, and DILG for w astes covered by this Act
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to ensure that these are m anaged and disposed properly and to ensure that
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im pacts to the environm ent are prevented: Provided, That the WMCRDS shall
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include waste recovery and recycling of com ponents of devices, equipm ent,
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fixtures, and other relevant items: Provided further, That the WMCRDS shall be
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subm itted to the National Solid W aste M anagem ent Commission in accordance
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with Republic Act No. 9003 or the Ecological Solid W aste M anagem ent Act of
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2000 for coordination with pertinent government agencies and units for 
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SECTION 28. S tren g th en in g  o f th e  Energy U tilization M anagem ent 
B ureau.- The Energy Utilization M anagem ent Bureau (EUMB) under the DOE 
is hereby re-organized as follows:
a) Alternative Fuels and Energy Technology Division whose functions shall 
include:
i. Form ulating policies, plans, and program s related to alternative 
fuels and new and advanced energy technologies’ development 
towards socially and environm entally responsive and effective 
utilization of energy resources; and
ii. Developing and m anaging the Alternative Fuels and Energy 
Technology Program.
b) Energy 
Efficiency 
and 
Conservation 
Program 
M anagem ent 
and 
Technology Promotion Division whose functions shall include:
i. Evaluating energy efficiency and conservation technologies;
ii. Promoting the increased utilization of energy efficient products;
iii. Preparing all reports for subm ission to other government agencies 
as required by law; and
iv. Developing 
a 
comprehensive 
information, 
education, 
and 
com m unication strategy for public aw areness on energy efficient 
program s and products.
c) Energy Efficiency and Conseiwation Public Sector M anagem ent Division 
whose functions shall include:
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i. 
Coordinating with the LGUs and 
the NEECCO to ensure 
consistency with the NEECP;
ii. 
Providing technical assistance to LGUs and other government 
agencies;
iii. 
Enhancing, expanding, and developing the GEMP; and
iv. 
Providing technical support to the Committee and acting as its 
Secretariat.
d) Energy 
Efficiency 
and 
Conservation 
Performance 
Regulation 
and 
Enforcement Division whose functions shall include: 
i. 
Spearheading the creation of the NEECD in accordance with the 
provisions of this Act;
Formulating, developing, and updating MEP, Energy Labeling, and 
other program s indicated in this Act;
Enforcing the program s under this Act and its IRR such as but not 
limited to the MEP and Energy Labeling.
11.
111.
The Appliance Testing and Laboratoiy Division of the Energy Research and 
Testing Laboratory Services, the Legal Services under the General Legal 
Services Division, the Financial Services under the Accounting Division, and 
each Field Office under their respective Energy Resources Development and 
Utilization Divisions of the DOE shall hereby receive additional plantilla 
positions to provide support services to the EUMB in the discharge of its 
functions under this Act.
The Secretary of DOE shall subm it the revised organizational structure and 
staffing compliment of the re-organized EUMB which shall be effective upon the 
approval of the DBM.
The budgetary requirem ents necessary for the re-organized EUMB and the 
supporting offices shall be taken from the current appropriations of the DOE. 
Thereafter, the funding for the sam e shall be included in the annual General 
Appropriations Act.
SECTION 29. Prohibited Acts. -  The following acts are prohibited: 
a) Failing to comply with Energy Labeling;
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b) Removing, defacing, or altering any energy label on the energy­
consum ing product before the said product is sold to the first retail 
purchaser or leased to the first lessee;
c) Failing to provide accurate information, or the provision of false or 
m isleading energy information as required to be subm itted under this 
Act;
d) Selling, leasing, or importing energy-consum ing products th at do not 
comply with the MEP as stated in this Act;
e) Failing a n d /o r willfully refusing to appoint or designate a CECO or CEM;
f) Willfully refusing to subm it to an on-site inspection as indicated in 
Setion 22 of this Act;
g) Failing a n d /o r willfully refusing to subm it any of the reports required 
under this Act;
(h) Failing to comply with issued orders of the DOE in the discharge of its
enforcem ent powers under this Act; and
(i) Violating any provision of the im plementing rules and regulations, codes,
and guidelines issued in accordance with this Act.
SECTION 30. E xplanation, R ecom m endation, D isclosure and O rder. -  Upon 
determ ination that a reasonable ground exists that an establishm ent has 
committed any of the prohibited acts under Section 29 of this Act, the DOE 
may consider the following m easures prior to the imposition of the appropriate 
fines an d /o r penalties for such violations:
a) Require an Explanation supported by reports, returns, and other 
docum ents to rebut the alleged commission of the prohibited act;
b) In cases where an Explanation has been issued but the DOE finds a 
violation because of materially insufficient reports, false returns, and non­
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subm ission of required docum ents, provide a Recommendation to the said 
establishm ent;
c) Disclose the nam e of the establishm ent after it has received a 
Recommendation and failed to comply with such Recommendation; and
d) Issue an Order in cases where the said establishm ent failed to follow 
or comply with the Recommendation issued by the DOE: Provided, That failure 
on the part of the establishm ent to comply with the Order shall be a valid 
ground for the imposition of fines a n d /o r penalties in accordance with Section 
31 of this Act.
SECTION 31. F ines an d  Penalties. -  The DOE is empowered to impose fines 
and penalties for any violation of the provisions of this Act, its implementing 
rules and regulations and other issuances relative to this Act. The fines and 
penalties shall range from a m inim um  of Ten thousand pesos (PIO.OOO.OO) to a 
m axim um  of One million pesos (PI,000,000.00): Provided, That this is without 
prejudice to the penalties provided for under existing regulations prescribed by 
any other concerned government agency: Provided further. That this is w ithout 
prejudice to criminal liability as stated in this Act.
SECTION 
32. 
C rim inal Liability. 
-  The 
responsible officer/s an d /o r 
em ployee/s of any establishm ent or organization who willfully comm its any of 
the prohibited acts under Section 29 of this Act shall, upon conviction, suffer 
the penalty of im prisonm ent of one (1) year to five (5) years, or a fine ranging 
from a m inim um  of One hundred thousand pesos (P100,000.00) to One 
hundred million pesos (PI00,000,000.00) or twice the am ount of costs avoided 
for non-compliance, whichever is higher, or both, upon the discretion of the 
court.
Any person, who willfully aids or abets the commission of the said prohibited 
acts or who causes the commission of any such act by another shall be liable 
in the same m anner as the principal.
In cases of association, partnership or corporations, the penalty shall be 
imposed on the partner, president, chief operating officer, chief executive 
officer, director, or officer responsible for the violation.
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SECTION 33. Im plem enting R ules and R egulations. -  The DOE shall, in 
consultation with concerned governm ent agencies an d /o r entities, LGUs, 
commercial, industrial, and transport sectors, and other relevant stakeholders, 
prom ulgate the IRR within six (6) m onths from the effectivity of this Act.
SECTION 34. Codes an d  G uidelines. -  The DOE, in accordance with the 
provisions of this Act, shall develop all Codes and Guidelines m entioned herein 
within six (6) m onths from the prom ulgation of this Act’s IRR.
SECTION 35. C ongressional O versight. -  Upon the effectivity of this Act, the 
Joint Congressional Power Commission created under Section 62 of Republic 
Act No. 9136 or the Electric Power Industry Reform Act of 2001 shall be 
renam ed to Joint Congressional Energy Commission and shall exercise 
oversight powers over the im plem entation of this Act.
SECTION 36. S eparability C lause. -  If for any reason, any section or provision 
of this Act is declared to be unconstitutional or invalid, such part not affected 
thereby shall rem ain in full force and effect.
SECTION. 37. R epealing C lause. -  All laws. Presidential decrees, executive 
orders, issuances rules and regulations, inconsistent with the provisions of this 
Act are hereby repealed or modified aceordingly.
SECTION 38. E ffectivity. -  This Act shall take effect fifteen (15) days after its 
publication in at least two (2) new spapers of general circulation upon its 
approval.
Approved.
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