Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NoBB42

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Access to energy is vital for economic growth. It is a necessary variable to the
government's economic goals, present and future. Unfortunately, the Philippines’
energy prospects has a foreboding forecast. In Asian Development Bank's Outlook
2013: Asia’s Energy Challenge, Asian countries, including the Philippines, are seen
to remain heavily dependent on energy imports until 2035.’ ADB also predicted a
decline in renewable energy should no initiative be taken: “In the Philippines, the
contribution of [renewable energy] will shrink from 43 percent in 2010 to 14 percent
in 2035, by which time proven indigenous gas and coal reserves will be depleted.”
From 1971 to 2013, the country’s energy imports averaged 45.45% out of the
country’s entire energy consumption.” In other words, almost half of the country’s
energy consumption is reliant on imported energy sources for over three decades.

The State must ensure efficient use of current energy resources while
developing more local energy alternatives for the common good. The current and
future energy resources of the country must be managed with minimum energy
waste while reducing harmful emissions. Such an approach contributes to the
national economy and helps the environment. Furthermore, this demand-based
handling can preserve the country’s natural resources longer, a step needed for the
nation’s energy security.

In response to the ADB and World Bank forecasts, the Department of Energy
formulated plans to transition the bulk of energy consumption from traditional forms
of energy such as oil, coal, and gas, to renewable resources like hydropower energy,
geothermal energy, and the like. Executive policies, led by the Department of
Energy, are under the program called the “Energy Efficiency and Conservation
Roadmap 2017-2040". The master plan details its strategy from industry
development to sustenance in the short and long terms. However, legislative action
that shall provide the country with a corresponding law that can implement
accountability for the plan is yet to be passed. Many bills have been proposed in the
last few years but none have become law.

* ADB, Outlook 2013: Asia's Energy Challenge
? http:/Awww.theglobaleconomy.comvPhilippines/Energy_imports/


In view of the foregoing, this bill is proposed to bridge the gap. This refilled
version of the Energy Efficiency and Conservation Act of 2017 seeks to set an
overall policy framework, promote energy efficiency and conservation through fiscal
and non-fiscal incentives, and empower the Department of Energy to effectively
implement the same. The bill also includes incentives for significant capital
investments and accreditation of energy service providers and energy
manger/professionals, information, education and communication activities,
formulation of an energy utilization database and setting performance standards and
enforcing compliance thereto.

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

LUIS |UND “1 ™ VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quejon City

SEVENTEENTH CONGRESS
‘Second Regular Session

6642

HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

CHAPTER!
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “Energy Efficiency and
Conservation Act of 2017.

SECTION 2. Declaration of 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 implementing energy efficiency and
conservation plans and programs to secure sufficiency and stability of
energy supply in the country, to cushion the impact of high prices of
imported fuels on local markets, and to protect the environment in
support of the economic and social development goals of the country;

b) Promote and encourage the development and utilization of efficient
renewable energy technologies, systems, 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 market-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 fundamental 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. Definition of Terms. - For the purposes of this Act, the following
terms shall have the following meanings unless indicated otherwise:

a) Certified Energy Conservation Officer (CECO) - refers to a
professional who obtains a certification as a CECO after demonstrating
high levels of experience, competence, proficiency, and ethical fitness
in the energy management profession, and who shall be responsible
for the supervision and maintenance of the facilities of Type 1
Designated Establishments for the proper management of energy
consumption and such other functions deemed necessary for the
efficient and judicious utilization of energy under this Act;

b) Certified Energy Managers (CEM) - refers to a licensed engineer who
obtains a certification as a CEM after demonstrating high levels of
experience, competence, proficiency, and ethical fitness in the energy
management profession, and who shall be chosen by Type 2
Designated Establishments to plan, lead, manage, coordinate, monitor,
and evaluate the implementation of sustainable energy management
within their organizations;

©) Designated Establishment - refers to a private or public entity in the
commercial, industrial, transport, power, agriculture, public works, and
other sectors identified by the Department of Energy (DOE) as energy-
intensive industries based on their annual energy consumption in the
previous year or another annual index equivalent to such energy, the
amount of which is indicated in this Act and subject to adjustment by
the DOE as it deems necessary;

4) Distribution Utility - refers to any electric cooperative, private
corporation, government-owned utility, or existing local government
unit which has an exclusive franchise to operate a distribution system
including those whose franchise covers economic zones;


e)

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Department of Energy (DOE) - refers to the agency created by
Republic Act No. 7638 or the Department of Energy Act of 1992 and
whose functions were expanded by Republic Act No. 9136 or the
Electric Power Industry Reform Act of 2001;

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;

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 used to achieve savings. It can refer to a walk-through
audit, a preliminary audit, or a detailed audit;

Energy Auditor - refers to individuals or entities certified by DOE who
have proven credibility and competence to conduct an Energy Audit:
Provided, That the guidelines in the certification of Energy Auditors
shall be developed by DOE upon consultation with stakeholders;

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

Energy Consumption and Conservation Report - refers to the
periodic report submitted to the DOE by Type 1 and Type 2
Designated Establishments, and the Transmission Utility with regard to
the National Energy Efficiency Conservation Plan containing their,
among others, energy consumption, energy loss, and status of energy
use: Provided, That the comprehensive contents of the report shall be
specified by DOE;

Energy Efficiency - refers to the way of managing and restraining the
growth in energy consumption resulting in the delivery of more services
for the same energy input or the same services for less energy input;

Energy Efficiency and Conservation Office (EECO) - refers to the
office to be established in local government units mandated to oversee
and monitor the implementation of each local government unit's Local
Energy Efficiency and Conservation Plan;

m) Energy Efficiency and Conservation Officer (EEC Officer) - refers

to the head of the EECO responsible for overseeing the


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implementation of the Local Energy Efficiency and Conservation Plan
at the local government level;

Energy Efficient Projects - refers to projects designed to reduce
energy consumption and costs by any improvement, repair, alteration,
or betterment of any building or facility, or any equipment, fixture, or
furnishing to be added to or used in any building, facility, or vehicle
including the manufacturing and provision of services related thereof:
Provided, That these projects must be cost-effective and will lead to
lower energy or utility costs during operation and maintenance;

Energy End-Users - refers to all individuals and entities which
consume energy to include but shall not be limited to households,
industrial and commercial customers, power plants, distribution utilities,
and transmission utilities;

Energy Labeling — refers to the Philippine Energy Standards and
Labeling Program (PESLP) which requires manufacturers to attach an
energy label on their products to inform consumers about the energy
performance and efficiency of the product;

Energy Management - refers to the process of designing and
implementing an optimal program of purchasing, generating, and
consuming various types of energy based on the end-users’ overall
short-term and long-term management program, with due
consideration of factors including costs, availability, economics, and
environmental impact;

Energy Service Company (ESCO) - refers to a juridical entity that
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
management, energy financing, technical engineering expertise and
consultancy, equipment supply, installation, operation, maintenance,
and upgrade, and monitoring and verification of performance and
savings. The goods include but are not limited to: lighting, motors and
drives, heating, ventilation, and air conditioning systems, building
envelope improvements, and waste heat recovery, cooling, heating, or
other usable forms of energy control systems;

Energy Sufficiency - refers to a condition where the quantity of the
supply of energy is enough or sufficient to meet the demand, including
the required reserves;


\) Government Energy Efficiency Projects - refers to energy efficiency
projects carried out by all government departments, government-
‘owned-and-controlled corporations (GOCCs), state colleges and
universities, hospitals, and other instrumentalities 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)

Government Energy Management Program (GEMP) - refers to the
government-wide program to reduce the government's monthly
consumption 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 Conservation Plan (LEECP) - refers to
a collaborative and multistakeholder comprehensive framework,
governance structure, and programs for local energy efficiency and
conservation with defined targets, feasible strategies, and regular
monitoring and evaluation: Provided, That it shalll be aligned with this
Act and the National Energy Efficiency and Conservation Plan;

w) Local Government Units (LGUs) - refers to the government units
created through Republic Act No. 7160;

x) Minimum Energy Performance (MEP) - refers to a performance
standard which prescribes a minimum level of energy performance for
the commercial, industrial, and transport sectors, and energy-
consuming products including but not limited to appliances, lighting,
electrical equipment, machinery, and transport vehicles that must be
met or exceeded before they can be offered for sale or used for
residential, commercial, transport, and industrial purposes;

National Energy Efficiency and Conservation Coordinating Officer
(NEECCO) - refers to the person appointed by the league of local
government units from among all the EEC Officers of different local
governments who shall be responsible for integrating all the Local
Energy Efficiency and Conservation Plans;

y)

z)

National Energy Efficiency and Conservation Database (NEECD) -
refers to a centralized, comprehensive, and unified database on
national energy consumption, the application and use of energy
efficient and renewable energy technologies, and other critical and
relevant information to be used for evaluation, analysis, and
dissemination of data and information related to energy efficiency and
conservation;


aa) National Energy Efficiency and Conservation Plan (NEECP) -
refers to the national comprehensive framework, governance structure,
and programs for energy efficiency and conservation with defined
national targets, feasible strategies, and regular monitoring and
evaluation; Provided, That it is aligned with this Act and is a result of a
collaborative and multi-stakehalder consultative process: Provided
further, That it shall be regularly reviewed and revised as determined
by the DOE;

bb)Philippine Qualifications Framework (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 methods by learners and workers. It is an
assessment-based qualification recognition which is competency-
based and labor market driven;

cc) Transport Vehicle - refers to transport vehicles, be it land, air, or sea
regardless of size or weight classification;

dd)Specific Energy Consumption (SEC) - refers to the energy
‘consumption volume required per unit, such as production volume,
sales amount, transportation kilometer, transportation tonne-kilometer,
floor space, and such other indicators relevant to energy consumption;
and

ee)Transmission Utility - 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.

CHAPTER 2
ROLES AND RESPONSIBILITIES

SECTION 5. Implementing Agency. The DOE shall be the lead government
agency in the implementation of the provisions of this Act. It shall be responsible
for the planning, formulation, development, implementation, enforcement, and
monitoring of energy management policies and other related energy efficiency
and conservation plans and programs. In addition to its existing mandate, 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)

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Develop a system of monitoring the implementation of the NEECP,
including the targets that are established therein;

Develop and maintain the NEECD, in coordination with and assisted by
the Philippine Statistical Authority, to ensure efficient evaluation,
analysis, and dissemination of data and information for enforcement,
planning, and policy-making purposes;

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;

Develop, impose, and review the MEP enforced on machinery and
equipment, appliances, technologies, vehicles, and other energy
consuming equipment and electric devices, among others, in
consultation with the Department of Trade and Industry - Bureau of
Philippine Standards, and pursuant to Chapter 5, Section 13 of this
Act;

Require manufacturers, importers, and dealers to comply with the
MEP, and to display on the packaging and on their products the energy
label showing the energy requirement and consumption efficiency of
‘such products;

Periodically review and reclassify Designated Establishments as
defined under this Act and pursuant to its Implementing Rules and
Regulations (IRR);

Enforce and ensure compliance with prescribed rating standards for
energy performance in buildings and industries, in coordination with
pertinent government agencies;

Support LGUs on matters related to energy efficiency planning and
promotion, the preparation of their respective LEECPs, and its
implementation through various local energy efficiency programs:
Provided, That DOE shall provide LGUs with tem plates for reporting
updates on the implementation;

Coordinate with the NEECCO for the integrated LEECP to ensure its
consistency and alignment with the NEECP;

Consult with Energy End-Users to develop the appropriate mechanism
to effectively implement this Act: Provided, That such mechanism shall,
as much as practicable, redound to the direct benefit of the Energy
End-user;


Initiate and maintain 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 awareness and advocacy campaign

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p)

on energy efficiency and conservation in partnership with business,
academe, non-government organizations, and other sectors;

Provide annual reports to Congress, indicating, among others, the
status of implementation of this Act at the national and local levels as
well as cost-effectiveness outcomes, and energy and environmental
impacts resulting from the implementation of this Act;

Impose and collect reasonable fees for accreditation and certification
for services provided in this Act; and

Perform such other powers and functions as may be necessary to
attain the objectives of this Act.

SECTION 6. Role of Other Government Agencies. - 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 enumerated hereunder:

a)

b)

©)

dq)

Board of Investments (BO!) - The BO! shall include Energy Efficient
Projects as defined in this Act in the annual investment priorities plan
entitled to incentives provided under Executive Order No. 226 or the
Omnibus Investment Code of the Philippines and any other applicable
laws;

Climate Change Commission (CCC) - The CCC shall collaborate with
the DOE and other government agencies in establishing targets,
determining 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;

Commission on Audit (COA) - The COA shall recognize Government
Energy Efficiency Projects as defined under this Act consistent with
government accounting and auditing rules;

Commission on Higher Education (CHED) - The CHED shall integrate
into existing engineering curricula appropriate courses related to


e)

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6)

energy management. It shall also promote energy efficiency measures
in higher education institutions including state colleges and
universities;

Department of Budget and Management (DBM) - The DBM shall give
due preference to funding Government Energy Efficiency Projects as
defined under this Act;

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

Department of Finance (DOF) - The DOF, in coordination with the DOE
and other concemed agencies, shall draw up appropriate mechanisms
to implement the fiscal incentives under this Act;

Department of Environment and Natural Resources (DENR) - The
DENR, in coordination with the DOE and Department of Interior and
Local Government, shall establish guidelines for the accurate
characterization of wastes arising from energy-consuming devices,
equipment, fixtures, and other relevant items, including the end-of-life
of vehicles and its component parts: Provided, That such guidelines
will include appropriate containment features and management of
hazardous wastes, consistent with Republic Act No. 6969 or the Toxic
Substances and Hazardous and Nuclear Wastes Control Act of 1990;

Department of Interior and Local Government (DILG) - The DILG shall,
in coordination with the DOE, be responsible for ensuring compliance
of all LGUs in implementing the provisions of this Act;

Department of Public Works and Highways (DPWH) - The DPWH
shall, in coordination with the DOE, be responsible for ensuring the
implementation of the Guidelines on Energy Conserving Design of
Buildings and Utility Systems 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;

Department of Science and Technology (DOST) - The DOST shall, in
coordination with the DOE, be responsible for carrying out strategic
research and development programs aimed at facilitating the
development of new and alternative energy efficient technologies and
the promotion thereof;

Department of Trade and Industry (DTI) - The DTI, through the Bureau
of Philippine Standards, shall, in consultation with the DOE, require


manufacturers, importers, and dealers to comply with the MEP, and to
display the energy label and /or the energy efficiency label showing the
energy requirement and consumption efficiency of such products on
the packaging and on the products themselves;

m) Department of Transportation (DOTr) - The DOTr shall, in coordination

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with the DOE and the DENR, be responsible for ensuring compliance
of vehicle owners, manufacturers, and importers with the MEP for
transport vehicles consistent with the specifications for all types of
fuels prescribed under Republic Act No. 8749 or the Clean Air Act of
1999, and to display the energy consumption label in coordination with
the vehicle manufacturers, transport industry associations, public
transport groups, and non-government organizations. The DOTr shall
also assist the DOE in the enforcement of and compliance with
measures under this Act and its implementing rules and regulations
relative to the energy consumption of the transport sector.

Governance Commission for GOCCs (GCG) - The GCG shall
incorporate energy efficiency as a factor in evaluating the performance
of GOCCs;

Government Financial Institutions (GFis) - The GFls shall set aside
lending funds for Energy Efficient Projects at concessional rates of
interest to attract private sector investments. The GFls, 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 investments in small and
medium-sized enterprises and performance risks related to energy
efficiency solutions developed by ESCOs, engineering companies, and
other technology providers;

Insurance Commission (1C) -The IC in collaboration with the GFis shall
ensure the availability of compatible guarantee products that would
mitigate the credit risks associated with energy efficiency investments
in small and medium-sized enterprises and performance risks related
to the energy efficiency solutions developed by ESCOs, engineering
companies, and other technology providers;

National Competitiveness Council (NCC) - The NCC shall serve as the
focal point for private sector involvement in the implementation of this
Act in recognition of the potential of energy efficiency as a tool for
improving the competitiveness of businesses in the country;

Philippine Statistics Authority (PSA) - The PSA shall, in coordination
with the DOE, institutionalize the household energy consumption
survey, the survey of energy consumption of establishments, and other


surveys relating to energy supply, demand, efficiency, and
conservation, and assist the DOE in the establishment 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 ather
training and service institutions, shall develop Training Regulations for
the Certifications of Energy Managers 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 implement
skills training, assessment, and certification programs for mechanics,
technicians, installers, and operators of energy efficient, as well as
renewable energy systems.

SECTION 7. Role of Local Government Units. - 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.

Furthermore, the LGUs shall assist the DOE in monitoring compliance with the
obligations of Designated Establishments 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 altemative energy efficient technologies and systems, including
renewable energy technologies, in compliance with the declared policies of this
Act

CHAPTER 3
INTER-AGENCY ENERGY EFFICIENCY AND CONSERVATION COMMITTEE

SECTION 9. Inter-Agency Energy Efficiency and Conservation Committee
(Committee). -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 implementation 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;
f) Secretary of the DPWH;


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
members of the Committee: Provided, That the said representatives
are actively involved in promoting 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 Management Division of
DOE's Utilization Management Bureau (EUMB), as defined in this Act, shall
serve as the Committee's Secretariat.

SECTION 10. Powers and Duties - The Committee shall have the following
powers and duties:

a) To prepare an annual assessment of opportunities for energy cost
reduction in state-owned and leased buildings and facilities designated by
the Committee: Provided, That each assessment shall be completed each
year: Provided further, That the assessment shall be available to the
public: Provided finally. That the assessment shall include:

1. Data for the preceding five (5) years of energy consumption and costs
including anticipated energy consumption and cost projected for the
next three (3) years for each building and facility designated by the
Committee;

2. Energy conservation measures 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 measures; and

4. Energy conservation opportunities based on audits, technical
analyses, or other methods of determining such opportunities and
associated energy saving operations and maintenance procedures
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 measures 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 management or conservation;


d) To annually recommend specific operations and maintenance procedure
modifications and capital projects for state-owned and leased buildings
and facilities designed to reduce energy consumption 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 recommendations for statutory change,
and identifying opportunities for public sector energy cost reductions not
addressed by this Act or the programs developed pursuant 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

SECTION 11. Certified Energy Conservation Office (CECO) and Certified
Energy Manager (CEM). - A system for the certification and assessment of
energy conservation officers and energy managers shall be established towards
raising the professional standards of those engaged in energy management.

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 assessment and certification process, and a certification for the
determined competency undertaken by the prescribed governance structure and
quality assurance systems and aligned with the POF and applicable international
standards. Towards this end, TESDA shall conduct training, assessment, and
certification of workers for POF qualification levels 1 to 5, and shall register
Technical Vocational Education and Training programs including that 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 assessment system for registered engineers shall be
established by CHED. Towards this end, CHED shall offer professional certificate
programs for energy managers and, in coordination with the DOE and TESDA,
shall develop undergraduate, graduate, and professional certificate programs on
energy management 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. Accreditation of Energy Service Company (ESCO). The DOE
shall strengthen the existing ESCO accreditation system to develop this service
‘sector and to provide the market with a source of technically and financially
capable entities that can assist in the delivery of energy efficiency-related
projects.

ESCOs applying for accreditation must demonstrate their technical and
managerial competence to design and implement energy efficiency projects,
including but not limited to:

(a) Energy Audits;

(b) Design Engineerin,
(c) Providing or arranging project financing;

(d) Construction Management;

(e) Operations and Maintenance of Energy Efficiency Technologies; and
(f) Verifying Energy Savings.

CHAPTER 5
ENERGY PERFORMANCE STANDARDS AND LABELING REQUIREMENTS

SECTION 13. Minimum Energy Performance (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-consuming products through a particular product
requirement under the PESLP shall also be developed by the DOE in
consultation with relevant stakeholders involved in the manufacturing, sale, and
use of the products covered. The DOE shall also develop the energy
performance testing guidelines for all energy-consuming products to en sure
compliance with the MEP.

All manufacturers, importers, distributors, and retailers of energy-consuming
products shall comply with the MEP, subject their energy-consuming products to
energy performance testing, and submit their respective product information to
the DOE.

No manufacturer, importer, distributor, and retailer shall sell, lease, or import any
energy-consuming product, unless the product complies with the MEP and the
product or its package is labeled in accordance with this Act.


SECTION 14. Energy Labeling for Products and Equipment. - The DOE shail
prescribe energy labels for all energy-consuming products, devices, and
equipment. Manufacturers, importers, suppliers, distributors, and retailers
engaged in selling these products, devices, and equipment shall ensure that
these energy labels are displayed accordingly, and shall provide information that
will assist consumers to make informed decisions on these products: Provided,
That they shall ensure the integrity of the information submitted 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 Mandatory Energy Efficiency Rating
and Labeling System (MEERLS) for identified energy-consuming products, such
as, but not limited to, room air conditioners, refrigeration units, and television
sets, to promote energy efficient appliances and raise public awareness on
energy saving. The energy efficiency label, at the minimum, shall reflect the
energy efficiency rating of the product, the monthly energy consumption based
on a specified hour of daily usage, the brand name and product model, and the
year the energy rating was issued: Provided, That the calculation method of the
energy efficiency rating shall be made 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 Product, Device, and Equipment Examination,
Testing, and Verification. -The DOE shall regularly select energy-consuming
products and their models for examination, testing, and verification. As such, the
DOE may require any manufacturer, importer, supplier, distributor, or retailer of
energy-consuming products, devices, and equipment to make available, at such
place as the DOE may specify, such number of products as the DOE considers
to be reasonably necessary for examination and testing under this Section.

The DOE is authorized to dismantle and examine the energy-consuming product,
device, or equipment referred herein, to determine the product's eneray
efficiency. Such products, upon completion of testing, shall be returned by the
DOE to the concerned manufacturer, 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.

The DOE, subject to procurement laws and regulations, may procure the
services of or enter into an agreement or other arrangements with a qualified
supplier or entity to carry out the examination and testing of energy consuming
products. The DOE, in the engagement of a qualified supplier or entity to carry
out the examination and testing of energy-consuming products, shall follow the
process and procedures laid down in Republic Act No. 9184 or the Government


Procurement Reform Act and its revised implementing rules and regulations
except when the engagement involves a contractual arrangement under a Public
Private Partnership covered by Republic Act No. 6957 or An Act Authorizing the
Financing, Construction, Operation and Maintenance of Infrastructure Projects by
the Private Sector and For Other Purposes, as amended by Republic Act No.
7718, or through a Joint Venture Agreement with private entities under a profit
sharing scheme under the 2013 NEDA Joint Venture Guidelines as may be
amended in the future.

SECTION 16. Fuel Economy Performance for 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 with the assistance of the DENR and DOTr. The vehicle manufacturers,
importers, and dealers shall provide technical information on the fuel economy
rating of the engine that will allow the consumers to make an informed decision in
choosing the vehicles for their use.

The DOE shall develop and conduct fuel efficiency testing guidelines for the
conduct of fuel efficiency tests to validate the information provided by vehicle
manufacturers, importers, and dealers.

SECTION 17. Energy Performance for Buildings. - To ensure appropriate and
effective implementation 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, government offices and
military facilities, the LGUs shall implement the following measures in
accordance with building perm it issuances:

a) New building construction shall comply with the minimum requirements as
specified in the Guidelines on Energy Conserving Design on 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 minimum requirements 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. Designated Establishments. - Designated Establishments shall
initially be classified as follows:


a) Type 1 Designated Establishments are those with an annual energy

consumption of 500,000 kilowatt-hours (kWh) to 4,000,000 kWh for the
previous year, and

b) Type 2 Designated Establishments are those with an annual energy

consumption of more than 4,000,000 kWh for the previous year.

The thresholds for determining Type 1 or Type 2 Designated Establishments
shall be periodically reviewed and adjusted, if deemed necessary, by the DOE.

SECTION 19. Obligations of Designated Establishments. - The Designated
Establishments shall have the following obligations:

a) Integrate an Energy Management System Policy into the business

b)

6

d)

e)

g.

h

)

)

)

)

operation based on ISO 50001 or any similar framework;

Setup programs to develop and design measures that promote energy
efficiency, conservation, and sufficiency that may include, but are not
limited to, installation of renewable energy technologies;

Setup annual targets, plans, and methods of measurements and
verification for the implementation of energy efficiency and
conservation projects;

Keep records on monthly energy consumption data and other energy-
related data;

Improve average SEC in accordance with the annual reduction targets
to be established by the DOE in the NEECP;

Submit an Annual Energy Consumption and Conservation Report to
the DOE by the IS11" of April of every year;

Conduct an Energy Audit once every three (3) years, by engaging
either a certified Energy Auditor or an accredited ESCO and submit an
Energy Audit Report to the DOE upon completion of the Energy Audit;

Employ a CECO for Type 1 Designated Establishments, and a CEM
for Type 2 Designated Establishments: Provided, That the CECO and
the CEM may be chosen from within the organization or hired through
external recruitment; and

Duly notify the DOE on the appointment or separation from the service
of their respective CECOs or CEMs within 10 working days from the
effectivity of this personnel action.


SECTION 20. Responsibilities of the Certified Energy Conservation Officer
and the Certified Energy Manager. - The CECO and the CEM, in their
respective Designated Establishments, shall:

a) Manage the energy consumption of facilities, equipment, and devices;
b) Administer the following:
i. Implementation and improvement of energy efficiency
measures,
ji, Conduct of regular Energy Audit,
ili, Energy monitoring and control, and
iv. Preparation of periodic energy consumption and energy
conservation program reports; and
c) Fulfill other responsibilities as indicated in this Act.

SECTION 21. Other Establishments. - Establishments with an annual energy
consumption of at least 100,000kWh but less than 500,000 kWh in the previous
year shall be required to submit an annual energy consumption report to the
DOE and integrate an Energy Management 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
establishments may, on a voluntary basis, submit themselves to external Energy
Audit or quality control assessment to assist them in their energy planning and
management.

SECTION 22. Visitorial Powers and On-Site Inspections. - The DOE shall
have the authority to visit Designated Establishments to inspect energy
consuming facilities, evaluate energy management systems and procedures,
identify areas for efficiency improvement, and verify energy monitoring records
and reports and other documents related to the compliance requirements of this
Act within office hours and in the presence of an authorized representative of the
Designated Establishment.

CHAPTER 7
DEMAND SIDE MANAGEMENT

SECTION 23. Demand Side Management (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 consumption through effective load management
resulting in the decrease of power demand the migration of power demand from
peak to off-peak periods or such measures undertaken by distribution utilities to
encourage end-users to properly manage their loads to a reduction of eneray
consumption through effective load management resulting in the decrease of
power demand and the migration of power demand from peak to off-peak periods


or such measures undertaken by distribution utilities to encourage end-users to
properly manage their loads to achieve efficiency in the utilization of fixed
infrastructures in the systems.

CHAPTER 8
INCENTIVES

SECTION 24, Fiscal Incentives. - Upon certification by the DOE, Energy
Efficient Projects as defined in this Act shalll be included in the annual investment
priorities plan of the BO! and shall be entitled to the incentives provided under
Executive Order No. 266 or the Omnibus Investment Code of the Philippines and
any other applicable laws.

SECTION 25. Non-Fiscal Incentives. - Establishments that will implement or
are implementing energy-efficient projects shall be entitled to the following:

a) Provision of awards 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 Assistance. - GFls 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 9
MISCELLANEOUS PROVISIONS

SECTION 27. Waste Management Collection Recycling and Disposal
Guidelines. - The DENR, in coordination with the DOE and the DILG, will
establish guidelines for the accurate characterization of wastes arising from
energy-consuming devices, equipment, fixtures, and other relevant items,
including end-of-life vehicles and their component parts. Such guidelines will
include appropriate containment features and management measures for
hazardous wastes, consistent with Republic Act No. 6969 or the Toxic Substance
and Hazardous and Nuclear Wastes Control Act.

A Waste Management Collection, Recycling and Disposal Strategy (WMCRDS)
will also be developed by DOE, DENR, and DILG for wastes covered by this Act
to ensure that these are managed and disposed properly and to ensure that
impacts to the environment are prevented: Provided, That the WMCRDS shall


include waste recovery and recycling of components of devices, equipment,
fixtures, and other relevant items: Provided further, That the WMCRDS shall be
submitted to the National Solid Waste Management Commission in accordance
with Republic Act No. 9003 or the Ecological Solid Waste Management Act of
2000 for coordination with pertinent government agencies and units for
implementation.

SECTION 28. Strengthening of the Energy Utilization Management Bureau. -
The Energy Utilization Management Bureau (EUMB) under the DOE is hereby
re-organized as follows:

b)

°)

d

)

)

Alternative Fuels and Energy Technology Division whose functions
shall include:

Formulating policies, plans, and programs related to
alternative fuels and new and advanced energy
technologies’ development towards socially and
environmentally responsive and effective utilization of energy
resources; and;

Developing and managing the Alternative Fuels and Energy
Technology Program.

Energy Efficiency and Conservation Program Management and
Technology Promotion Division whose functions shall include:

Evaluating energy efficiency and conservation technologies;
Promoting the increased utilization of energy efficient
products;

Preparing all reports for submission to other government
agencies as required by law; and

Developing a comprehensive information, education, and
communication strategy for public awareness on energy
efficient programs and products.

Energy Efficiency and Conservation Public Sector Management
Division whose functions shall include:

Coordinating with the LGUs and the NEECCO to ensure
consistency with the NEECP;

Providing technical assistance to LGUs and other
government agencies;

Enhancing, expanding, and developing the GEMP; and;
Providing technical support to the Committee and acting as
its Secretariat.

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;
li. Formulating, developing, and updating MEP, Energy
Labeling, and other programs indicated in this Act;
ili, Enforcing the programs under this Act and its IRR such as
but not limited to the MEP and Energy Labeling.

The Appliance Testing and Laboratory 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 p/antilla positions
to provide support services to the EUMB in the discharge of its functions under
this Act.

The Secretary of DOE shall submit the revised organizational structure and
staffing complement of the re-organized EUMB which shail be effective upon the
approval of the DBM.

The budgetary requirements 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 same 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;
b) Removing, defacing, or altering any energy label on the energy
consuming product before the said product is sold to the first retail
purchaser or leased to the first lessee;

°)

Failing to provide accurate information or the provision of false or
misleading energy information as required to be submitted under this
Act;

d)

Selling, leasing, or importing energy-consuming products that do not
comply with the MEP as stated in this Act;

e)

Failing and /or willfully refusing to appoint or designate a CECO or
CEM;

f) Willfully refusing to submit to an on-site inspection as indicated in
Section 22 of this Act;


g) Failing and /or willfully refusing to submit any of the reports required
under this Act;

h) Failing to comply with issued orders of the DOE in the discharge of its
enforcement powers under this Act; and

i) Violating any provision of the implementing rules and regulations,
codes, and guidelines issued in accordance with this Act.

SECTION 30. Explanation, Recommendation, Disclosure and Order. - Upon
determination that a reasonable ground exists that an establishment has
committed any of the prohibited acts under Section 29 of this Act, the DOE may
consider the following measures prior to the imposition of the appropriate fines
and/or penalties for such violations:

a) Require an Explanation supported by reports, returns, and other
documents 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-
submission of required documents, provide a Recommendation to the said
establishment;

Disclose the name of the establishment after it has received a
Recommendation and failed to comply with such Recommendation; and

¢)

d

Issue an Order in cases where the said establishment failed to follow or
comply with the Recommendation issued by the DOE: Provided, That
failure on the part of the establishment to comply with the Order shall be a
valid ground for the imposition of fines and/or penalties in accordance with
Section 31 of this Act.

SECTION 31. Fines and 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 minimum of Ten thousand pesos (PIO.000.00) to a
maximum of One million pesos (P 1,000,000.00): Provided, That this is without
prejudice to the penalties provided for under existing regulations prescribed by
any other concemed government agency: Provided further that this is without
prejudice to criminal liability as stated in this Act.

SECTION 32. Criminal Liability. - The responsible officer/s and/or employee/s
of any establishment or organization who willfully com m its any of the prohibited
acts under Section 29 of this Act shall, upon conviction, suffer the penalty of
imprisonment of ane (1) year to five (5) years, or a fine ranging from a minimum
of One hundred thousand pesos (P100,000.00) to One hundred million pesos (P


100,000,000.00) or twice the amount 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 manner 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.

SECTION 33. Implementing Rules and Regulations. - The DOE shall, in
consultation with concerned government agencies and/or entities, LGUs,
commercial, industrial, and transport sectors, and other relevant stakeholders,
promulgate the IRR within six (6) months from the effectivity of this Act.

SECTION 34. Codes and Guidelines. - The DOE, in accordance with the
provisions of this Act, shall develop all Codes and Guidelines mentioned herein
within six (6) months from the promulgation of this Act's IRR.

SECTION 35. Congressional Oversight. - 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 shalll be renamed
to Joint Congressional Energy Commission and shall exercise oversight powers
over the implementation of this Act.

SECTION 36. Separability Clause. - If for any reason, any section or provision
of this Act is deciared to be unconstitutional or invalid, such part not affected
thereby shall remain in full force and effect.

SECTION. 37. 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.

SECTION 38. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation upon its
approval.

Approved,