CerIAuawo nos

Republic of the Philippines

House of Representatives
Quezon City

SIXTEENTH CONGRESS

First Regular Session

House BILLNO. 2864

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11 Introduced by Honorable Anthony M. Bravo and Honorable

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Cresente C. Paez

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,

Ina study conducted by the US Congress, it was found that,

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Homes and commercial or industrial buildings in the United States consume
significant quantities of energy, including energy for electricity and heating, the
generation or combustion of which creates significant quantities of greenhouse gas
emissions,

In most cases, energy efficiency is the most cost-effective and rapidly deployable
strategy for reducing greenhouse gas emissions, energy demand, and the need for
long-distance transmission of energy;

on-site renewable energy generation reduces greenhouse gas emissions, demand
on the electricity transmission grid, and the need for long-distance transmission
of energy;

many energy efficiency measures and on-site renewable energy generation
systems produce a net cost savings over the course of the usefull life of the

measures and systems, and often over a shorter time frame, but the initial expense


required to purchase and install the measures and systems is often a significant
barrier to widespread investment in the measures and systems;

5. financial products, financing programs, and other programs that reduce or
eliminate the need for the initial expense described in paragraph (4) can permit
building owners to invest in measures and systems that reduce total energy costs
and realize net cost savings at the time of the installation of the measures and
systems, defer capital expenditure, and enhance the value, comfort, and
sustainability of the property of the owners

The purpose of this Act is to establish a Green Energy for Homes and Buildings

Program, Inspired by a similar proposal in the United States, the Program is designed to
encourage widespread deployment of energy efficiency and on-site renewable energy
technologies in homes and other buildings throughout the Philippines by encouraging the

‘e rates and terms that

widespread availability of financial products and programs with attra
significantly reduce or eliminate upfront expenses thereby allowing building owners to
invest in energy efficiency measures and on-site renewable energy systems

Green energy is thought of in the context of electricity generation, and is often used
interchangeably with the terms renewable energy and alternative energy. Green energy
sources are called such because they are perceived to have lower carbon emissions and create
less pollution, Consumers, businesses, and organizations should be encouraged to purchase
green energy to support further development, help reduce the environmental impacts of

conventional electricity generation, and increase their nation’s eneray independence

a C.PARZ

HON. ANTHONY M. BRAVO


Republic of the Philippines
House of Representatives

Quezon City

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6 SIXTEENTH CONGRESS
7 First Regular Session
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HOUSE BILLNO. 2861

Introduced by Honorable Anthony M. Bravo and Honorable
12 Cresente C. Paez

13 AN ACT

14 ESTABLISHING A GREEN ENERGY FOR HOMES AND BUILDINGS PROGRAM

1S IN THE DEPARTMENT OF ENERGY TO PROVIDE FINANCIAL ASSISTANCE TO
16 PROMOTE RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL SCALE ENERGY
7 EFFICIENCY AND ON-SITE RENEWABLE TECHNOLOGIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
18 SECTION I. Short Title, ~ This Act shall be known as the This Act may be cited as the
19%Green Energy for Homes and Buildings Act of 2013.”

20 SE

TION 2. Implementing Agency. ~ ‘The Department of Energy shall implement the

2 provisions of this Act

2 SECTION 3. Definitions.
2B ‘A. GREEN ENERGY — refers to sources of energy that are natural; considered
24 to be environmentally friendly and non-polluting. These processes include
25 but are not limited to anaerobic digestion, geothermal_power, wind power,
26 small-scale hydropower, solar energy, biomass power, tidal power, and wave
21 power.

28 B. COST ~ means the monetary value of expenditures for supplies, services,
29 labour, products, equipment and other items purchased for use by a business
30 or other accounting entity.

31 C., DIRECT LOAN ~ means a loan by a lender to a customer without the use of a
32 third party

33 D. LOAN GUARANTEE ~ means a promise by a government to assume a private

34 debt obligation if the borrower defaults.+


1 E, PROGRAM- means the Green Energy for Homes and Buildings Program

2 established by section 6.
3 F, SECRETARY- means the Secretary of Energy

4 G, SECURITY- means shares, participation or interests in a corporation or in a
5 commercial enterprise or profit-making venture and evidenced by a certificate, contract,
6 instrument, whether written or electronic in character. It includes:

7 (a) Shares of stock, bonds, debentures, notes, evidence of indebtedness, asset-backed

8securities,
9 (b) Investment contracts, certificates of interest or participation in a profit sharing
lOagreement, certificates of deposit for a future subscription,
ul (c) Fractional undivided interests in oil, gas or other mineral rights,
12 (d) Derivatives like options and warrants;
B (e) Certificates of assignments, certificates of participation, trust certificates, voting trust
|4certificates or similar instruments,
15 (f) Proprietary or non proprietary membership certificates incorporations; and
16 (g) Other instruments as may in the future be determined by the Securities and Exchange

17Commission,

18 SECTION 4. Green Energy for Homes and Buildings Goals:
19 A. Development of targets and goals

20 1, The Secretary shall develop and publish for review and comment in

21 the Official Gazette short, medium, and long-term goals (including numerical

22 performance targets at appropriate intervals to measure progress toward those

23 goals) for-~

24 (a) a minimum number of homes to be retrofitted through energy
28 efficiency measures or to have on-site renewable energy systems
26 added,

27 (b) a minimum number of other buildings, by type, to be retrofitted
28 through energy efficiency measures or to have on-site renewable

29 energy systems added; and


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(©) the number of on-site solar energy, wind energy and
geothermal heat pump systems to be installed: and
2. as a result of those retrofits, additions, and installations--

(a) the quantity by which use of grid-supplied electricity, natural
gas, homes heating oil, and other fuels will be reduced;
(b) the quantity by which total fossil fuel dependence in the
buildings sector will be reduced;
(c) the quantity by which greenhouse gases are emitted will be
reduced;
(d) the number of jobs that will be created; and
(@) the estimated total energy cost savings for building owners

B, The Secretary may rely on reasonable estimates made by originators of

financial products or sponsors of financing programs for tracking progress toward

meeting the goals established under this section instead of requiring building owners to

monitor and report on the progress.

SECTION 5. Green Energy for Homes and Buildings Program.
A. Establishment- There is established in the Department of Energy a program to
be known as the “Green Energy for Homes and Buildings Program”
B, Eligibility Criteria
1, IN GENERAL- In administering the Program, the Secretary shall
establish eligibility criteria for applicants for financial assistance under subsection
(C) who can offer financial products and programs consistent with the purposes of
this Act.
2. CRITERIA- Criteria for applicants shall--
(a) take into account--
(i) the number and type of buildings that can be served by
the applicant, the size of the potential market, and the scope of the

program (in terms of measures or technologies to be used);


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(ii) the ability of the applicant to successfully execute the
proposed program and maintain the performance of the proposed
projects and investments;
(iii) financial criteria, as applicable, including the ability of
the applicant to raise private capital or other sources of funds for
the proposed program;
(iv) criteria that enable the Secretary to determine sound
program design, including ~
(1) an assurance of credible energy efficiency or
renewable energy generation performance; and
(1) financial product or program design that
effectively reduces barriers posed by traditional
financing programs

(b) encourage

(i) use of technologies that are either well-established or
new, but demonstrated to be reliable;

(ii) technical assistance in selecting and working with
vendors to provide energy efficiency measures or on-site
renewable energy generation systems;

3. Diverse Portfolio- In establishing criteria and selecting applicants to receive
financial assistance under subsection (C), to the maximum extent practicable, the
Secretary shall select a portfolio of investments that reaches a diversity of
building owners, including--

a. individual homeowners;

b. multifamily apartment building owners;

c. condominium owners associations;

d. commercial building owners, including multi-tenant commercial
properties; and

¢. industrial building owners

C. Financial Assistance —


1 1, In general ~ For applicants determined to be eligible under criteria established

2 under subsection (B), the Secretary may provide financial assistance in the form
3 of direct loans, letters of credit, loan guarantees, insurance products, other credit
4 enhancements or debt instruments (including securitization or indirect credit
5 support), or other financial products to promote the widespread deployment of,
6 and mobilize private sector support of credit and investment institutions
7 for, energy efficiency measures and on-site renewable energy generation systems
8 in buildings.

9 2. To the maximum extent practicable and consistent with sound business
10 practices, the Secretary shall seek to expedite reviews of applications for credit
u support under this Act in order to communicate to applicants in a timely manner
12 the likelihood of support so that the applicants can seek private capital in order to
B receive final approval. In carrying this out, the Secretary shall consider using
4 clear guidelines that communicate to applicants what level of performance on
1s eligibility criteria will ensure approval for credit support or resale
16 SECTION 6. General Accountability for the Program.

17 A Periodic Reports ~ Not later than one (1) year after the commencement

18 of operation of the Program and at least biannually thereafter, the

19 Secretary shall submit to the Committee on Energy of the Senate and

20 the Committee on Energy of the House of Representatives a report that

a1 includes a description of the Program in meeting the purpose and goals

22 established by or pursuant to this Act

23 B Audits by the Commission on Audit ~ The programs, activities,

24 receipts, expenditures, and financial transactions of the Program shall

28 be subject to audit by the Commission on Audit

26 SECTION 7. Appropriations. — To carry out the provisions of this Act, an amount of

27Fifty million pesos (PS0,000,000,00) is hereby authorized to be appropriated from the National
28Treasury. Thereafter, the amount necessary for the continuous operation of the program shall be

29included in the annual appropriations of the Department of Energy.


1 SECTION 8. Separability Clause. ~ If any provision or part hereof, is held invalid or
2unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

3valid and subsisting,

4 SECTION 9. Repealing Clause. — Any law, presidential decree or issuance, executive

Sorder, letter of instruction, admini

rative order, rule or regulation contrary to or is inconsistent

6with the provision of this Act is hereby repealed, modified, or amended accordingly.

i SECTION 10. Lffectivity Clause. ~ This Act shall take effect fifteen (15) days after its

Spublication in at least two (2) newspapers of general circulation,

Approved,