NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No.__157
I
o[ roe rn-rwf
72 JUL-7 P3 59
RECEIVED BV;
Introduced by Senator WIN GATCHALIAN
AN ACT PROVIDING FOR A NATIONAL ENERGY POLICY AND FRAMEWORK 
FOR A CLEAN AND JUST ENERGY TRANSITION IN THE COUNTRY, AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
"Energy Transition" refers to the global energy sector's shift from fossil-based 
systems of energy production and consumption — including oil, natural gas and coal — to 
renewable energy sources like wind and solar, as well as batteries;1 on 12 December 2015, 
196 parties entered Into Paris Agreement, an international treaty on climate change.2 Article 
2(l)(a) of the Paris Agreement provides that its purpose among others, is "[h]olding the 
increase in the global average temperature to well befow 2°C above pre-industrial levels and 
pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, 
recognizing that this would significantly reduce the risks and Impacts of climate change.3"To 
achieve this goal, countries, through their respective nationally determined 
contributions (NDCs), provide for actions they plan to take to reduce their GHG 
emissions. The Philippine Energy Plan (2020-2040) fails to provide a clear energy 
transition framework given the country's NDC and the aforementioned policies laid out
1 S & P Global. Available at https://www.spglobal.com/en/research-insights/aiticles/what-is-energy- 
transibon#:~:text=Energy%20transition%20refers%20to%20the,well%20as%20!ithium%2Dion%20batteries.Accessed on 4 
June 2022. It provides:
“Briergy transition refers to the global energy sector's sNft from fossii-based systems of energy production and consumption — inducing oil, 
natural gas and coal—to renewable energy sources like wind and solar, as well as lithium-ion batteries."
- me Paris Agreement, united Nations Qimate Change. Avaiiabie at https://unrccc.int/process-and-meetings/the-paris- 
agreement/the-paris-agreement. Accessed 7 January 2021.
3 Article 2(lXa) of Paris Agreement (2015). United Nations. Available at 
https://unfccc.int/sites/default/files/english_paris_agreement.pdf. Accessed on 7 January 2021.


in RA 7638, RA 9136 and RA 9513. On 15 April 2021, the Philippines communicated 
its updated NDC to the United Nations Framework Convention on Climate Change. It 
commits to a projected GHG emissions reduction and avoidance of 75%, of which 
2.71% is unconditional and 72.29% is conditional, representing the country's ambition 
for GHG mitigation for the period 2020 to 2030 for the sectors of agriculture, wastes, 
industry, transport, and energy.4
This measure seeks to establish a framework for Introducing and institutionalizing 
fundamental policies on energy transition, which includes promotion of clean energy 
sources, decrease in the utilization of fossil-based sources of energy, and the 
delineation of responsibilities among various government agencies in the transport 
and power sectors. The Climate Change Commission is tasked with leading the 
implementation of this bill through the creation and implementation of an Energy 
Transition Plan, with assistance of various government agencies such as the 
Department of Energy, Department of Transportation, Department of Environment 
and Natural Resources, Department of Finance, Department of Trade and Industry, 
Department of Agriculture, Department of Labor and Employment, Securities and 
Exchange Commission, and Energy Regulatory Commission. Through this bill, it is 
hoped that the country will be able to comply with its commitments under the Paris 
Agreement while ensuring that the transition shall be fair and inclusive.
Given the foregoing, the immediate passage of this measure Is ^ugh
IN GATCHALIAN
4 Green Growth Knowledge. Nationally Determined Contribution Communicated to the UNFCCC on 15 April 2021. Available at 
https://www.greengrowthknowledge.Org/sitesi/defautt/files/downloads/policy-database//Philippines%20-%20NDC.pdf. 
Accessed on 22 June 2022.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
S.B. No.
of tiie S^Fcrrrnn*
*22 JUL-7 P3S9
RECEIVED 3Y;
Introduced by Senator Sherwin Gatchalian
AN ACT PROVIDING FOR A NATIONAL ENERGY POLICY AND FRAMEWORK 
FOR A CLEAN AND JUST ENERGY TRANSITION IN THE COUNTRY, AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Energy Transition
Act".
Sec. 2. Declaration of Policy. -It is hereby declared the policy of the State to 
adopt a clean, just, and comprehensive energy transition framework which shall:
a. Enable the country to meet its international obligations to lower greenhouse 
gas emissions by reducing usage of fossil-based systems of energy 
production and consumption;
b. Provide protection to the environment by accelerating the exploration, 
development, and utilization of clean energy sources to include, among 
others, biomass, solar, wind, geothermal, ocean energy, hydropower, green 
hydrogen, and biofuels;
c. Ensure energy security in the country as it transitions into clean energy;
d. Warrant energy equity in the country during the energy transition; and


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e. Afford protection to labor and investments while the country shifts from
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fossil-based systems of energy production and consumption to clean energy
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sources.
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Sec. 3. Scope. ~ This Act shall establish a framework for introducing and
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institutionalizing fundamental policies on energy transition, including the promotion of
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clean energy sources, decrease in the utilization of fossil-based sources of energy, and
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the delineation of responsibilities among various government agencies in the energy
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sector.
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Sec. 4. Definition of Terms. - As used in this Act, the following terms shall be
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defined as:
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a. "Clean Energy Sources" refers to technologies, such as electric vehicles and
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fuel cells, and energy sources, such as renewable energy, that when utilized
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emits minimal or no GHG;
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b. "Climate Risk" refers to both physical and transition risk arising from climate
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change;
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c. "Energy Sector" refers to the sector engaged in exploration and production,
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refining and marketing, storage and transportation, and utilization of energy
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sources such as fossil fuels and renewable energy, whichever is applicable;
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d. "Energy Transition" refers to the global energy sector's shift from fossil-based
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systems of energy production and consumption to clean energy sources;
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e. "Just Transition" refers to globally recognized principles that should guide
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the transition to environmentally sustainable economies and societies;
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f. "Net zero emissions" refers to the state of the atmosphere where the GHG
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emitted are balanced by its removal;
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g. "Physical risk" refers to potential loss or damage to tangible assets arising
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from climate change or other weather-related conditions such as floods,
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typhoons, droughts, earthquakes, extreme weather variability, and rising
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sea levels;
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h. "Renewable Energy" refer to energy resources that do not have an upper
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limit on the total quantity to be used Include, among others, biomass, solar,


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wind, geothermal, ocean energy, and hydropower pursuant to the provision
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of Republic Act No. 9513; and
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i. 'Transition risk" refers to the potential economic adjustment cost resulting
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from policy, legal, technology, and market changes to meet climate change
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mitigation and adaptation requirements.
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Sec. 5. Energy Transition Plan -There shall be an Energy Transition Plan (ETP)
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which shall provide for a comprehensive framework In the exploration, development,
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utilization, and distribution of energy sources as well as resilience and upgrading of
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existing energy infrastructure in support of the country's shift from fossil-based
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systems of energy production and consumption to clean energy sources guided by the
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principle of just transition as defined under Section 9 of this Act. The ETP shall be
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prepared by the Climate Change Commission (CCC), in coordination with the technical
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working group created under Section 7 of his Act.
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The ETP shall:
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a. Include the following:
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The national targets under Section 6 of this Act,
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The annual targeted reduction In GHG emissions for the energy
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sector,
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ill. Mechanisms to determine compliance with the targets by the energy
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sector which shall be the monitored by the CCC, and
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iv. Programs to be implemented by the Department of Energy,
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Department of Transportation, Department of Trade and Industry,
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Department of Environment and Natural Resources, and Department
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of Agriculture, and other relevant agencies to reduce GHG emissions
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to reach the annual targets;
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b. Take into consideration, and Integrate if applicable, various laws including
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Republic Act No. 9136, Republic Act No. 9513, Republic Act No. 11285
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otherwise known as the Energy Efficiency and Conservation Act, Republic
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Act No. 11572 otherwise known as the Philippine Energy Research and
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Policy Institute Act, Republic Act No. 11646 otherwise known as the


Microgrid Systems Act, and Republic Act No. 11697 otherwise known as the 
Electric Vehicle Industry Development Act;
c. Be harmonized with the existing plans which shall include the National 
Determined Contribution, Philippine Energy Plan, National Transport Policy, 
Philippine Development Plan and Health and Pollution Action Plan; and
d. Be updated and submitted to the Office of the President and Congress not 
later than the 15th of September of every year after approval by the Energy 
Transition Committee.
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Sec. 6. National Targets - The country, through the national government
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agencies specified in this Act, shall:
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a. Implement a moratorium on the following:
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i. Establishment of new fossil fuel power plants upon the effectivity of
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this Act;
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ii. Sale of new internal combustion engine vehicles within the timeframe
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to be determined by the Energy Transition Plan;
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b. Implement a phase out of the following:
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i. Existing fossil fuel power plants within the timeframe to be
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determined by the Energy Transition Plan;
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II. Existing internal combustion engine vehicles within the timeframe to
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be determined by the Energy Transition Plan;
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c. Increase the share of clean energy sources in the energy mix of the country
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while taking into account the moratorium of new fossil fuel power plants
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and phase out of existing fossil fuel power plants;
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d. Reduce GHG emissions in accordance with the country's National
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Determined Contribution (NDC) and achieve net zero emissions in the
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energy sector by 2050;
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Sec. 7. Role of Government Agencies - In addition to their current
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responsibilities and functions under the existing laws, the following government
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agencies shall exercise responsibilities and functions as enumerated hereunder:
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a. Climate Change Commission (CCC) - The CCC shall:


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i. 
Serve as the lead agency in the implementation of this Act,
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Convene a technical working group (TWG), within thirty (30) 
calendar days from the effectivity of this Act, comprised of the 
following:
1. Secretary of CCC as the Chairperson,
2. Secretary of Department of Energy (DOE) as the Vice- 
Chairperson,
3. Secretary of Department of Finance (DOF),
4. Secretary of Department of Transportation (DOTR),
5. Secretary of Department of Environment and Natural 
Resources (DENR),
6. Secretary of Department of Trade and Industry (DTI),
7. Secretary of Department of Agriculture (DA),
8. Chairperson of the Energy Regulatory Commission 
(ERC), and
9. Chairperson of the Securities and Exchange Commission 
(SEC).
The members can appoint their permanent representatives to the 
TWG. The CCC shall serve as the TWG's secretariat. The TWG shall:
1. Evaluate and approve the FTP,
2. Monitor, review, and provide strategic direction In the 
implementation of the ETP and of this Act,
3. Coordinate with various national government agencies, 
government-owned and controlled corporations, local 
government units, and private stakeholders to ensure 
the timely implementation of the ETP,
4. Provide for a forum for feedback and recommendations 
on the implementation of the ETP, and
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Perform such other functions, as may be necessary, to 
attain the objectives of this Act,
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Formulate the ETP, upon consultation with relevant public and 
private stakeholders.


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iv. Monitor, in coordination with the members of the TWG, the 
implementation of the ETP, and
V. Compile all the GHG emissions report of the various sectors 
identified in this Act and determine its compliance with the targets 
set out in the ETP;
b. Department of Energy (DOE) - The DOE shall:
i. Assist the CCC in the implementation of the ETP ,
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Formulate, implement, enforce, and monitor programs in the 
energy sector towards the Implementation and accomplishment of 
the targets set out in the ETP, and ensure a just transition in the 
sector,
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Monitor and prepare an annual report on the GHG emissions of the 
energy sector in accordance with the targets set out In the ETP, and
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Submit annually the GHG emissions report of the energy sector to 
the CCC;
c. Department of Labor and Employment (DOLE) - The DOLE shall, in 
coordination with the DOE, ensure the protection of rights of the employees 
under the labor sector affected by the implementation of the ETP. It shall 
also undertake training programs, together with the Technical Education 
and Skills Development Authority, for affected employees by the 
implementation of the ETP to allow them to find gainful employment In 
other sectors;
d. Department of Finance (DOF) - The DOF, shall:
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Determine, upon consultation with the CCC, other members of the 
TWG, and other relevant public and private stakeholders, the 
prioritization of programs for the implementation of the ETP to be 
funded through the Energy Transition Fund, and
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Provide for mechanisms to assist companies to access green 
financing;
e. Department of Environment and Natural Resources (DENR) - The DENR 
shall, in coordination with the CCC and other concerned agencies, establish


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the guidelines for the determination of the amount of GHG emissions 
attributed to various sources;
f. Department of Transportation (DOTr) - The DOTr shall:
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Assist the CCC in the implementation of the ETP in the transport 
sector,
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Formulate, implement, enforce, and monitor programs In the 
transport sector towards the implementation and accomplishment 
of the targets set out in the ETP while ensuring a just transition for 
public utility vehicles,
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Monitor and prepare an annual report on the GHG emissions of the 
transport sector in accordance with the targets set out in the ETP, 
and
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Submit annually the GHG emissions report of the transport sector 
to the CCC;
g. Department of Agriculture (DA) - The DA shall:
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Assist the CCC in the implementation of the ETP In the agriculture, 
fisheries, and forestry (AFF) sector,
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Formulate, implement, enforce, and monitor programs in the AFF 
sector towards the implementation and accomplishment of the 
targets set out in the ETP while ensuring a just transition for the 
sector.
Monitor and prepare an annual report on the GHG emissions of the 
AFF sector in accordance with the targets set out in the ETP, and 
Submit annually the GHG emissions report of the AFF sector to the 
CCC;
h. Department of Trade and Industry - The DA shall:
i. Assist the CCC in the Implementation of the ETP in the industry 
sector,
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Formulate, Implement, enforce, and monitor programs in the 
industry sector towards the implementation and accomplishment of 
the targets set out in the ETP while ensuring a just transition for 
the sector,
Iii.
IV.


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iii. 
Monitor and prepare an annual report on the GHG emissions of the 
industry sector in accordance with the targets set out in the ETP, 
and
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Submit annually the GHG emissions report of the industry sector to 
the CCC;
a. Energy Regulatory Commission (ERC) - The ERC shall enact regulations to 
support the implementation of the national targets pursuant to Section 6 of 
this Act and the ETP.
Sec. 8. Mandatory Disclosure - The SEC shall make it mandatory for listed 
companies to disclose climate risks as the country shift from fossil fuels to clean energy 
sources.
Sec. 9. Just Transition - Under the principle of just transition, the TWG, In 
approving the ETP and its implementation, shall ensure a fair and inclusive energy 
transition by minimizing its negative impacts to communities that are reliant on fossil- 
based system of production and utilization. This shall include labor programs which 
includes conduct of trainings for employees that are under fossil-based system of 
production and utilization industries prior the implementation of this Act to ensure 
their continuous employment, If practicable, and to protect their rights and benefits in 
accordance with the existing labor laws and rules and regulations.
Sec. 10. Application of Incentives under RA 9513 or Renewable Energy Act of 
2008 and RA 11285or the Energy Efficiency and Conservation Act - Projects for the 
implementation of the ETP under this Act shall be entitled to the Incentives under RA 
9513 and RA 11285.
Sec. 11. Prohibited Acts -The following acts are prohibited: 
a. For natural or juridical entities:
i. Failure to disclose climate risks under Section 8 of this Act,


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ii. Violation of any provision of this Act, its implementing rules and 
regulations, and other issuances promulgated in accordance with 
this Act.
b. For government agencies: Failure to comply with their responsibilities an 
comply with the time frames under this Act.
Sec. 12. Fines and Penalties - Without prejudice to civil and criminal liability, 
the following administrative penalties shall be imposed upon the following for every 
prohibited act enumerated below:
a. Section 11(a):
i. First Offense: A fine ranging from Fifty thousand pesos 
(P50,000.00) to Five hundred thousand pesos (P500,000.00),
II. Second Offense: A fine ranging from Five hundred thousand pesos 
(P500,000.00) to One million pesos (P1,000,000.00) and revocation 
of permits.
b. Section 11(b):
i. First offense: six (6) months suspension,
Ii. Second offense: Dismissal from service.
Sec. 13. Energy Transition Fund- A Special Account in the General Fund (SAGF) 
for energy transition, which shall be maintained and managed by the Bureau of 
Treasury, shall be established to support the programs for energy transition and the 
implementation of the ETP. The SAGF for energy transition shall recognize and accept 
grants, contributions, and donations for energy transition, for the implementation of 
the ETP and its relevant programs.
Sec. 14. Appropriations - There is hereby appropriated out of the General 
Appropriations Act, the sum of One Hundred Million Pesos (PlOO,000,000.00) for the 
initial Energy Transition Fund. Thereafter, such amounts necessary for the sustainable 
implementation of the ETP and its relevant programs shall be appropriated from the 
General Appropriations Act.


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Sec. 15. Implementing Rules and Regulations - The CCC shall, in consultation 
with TWG and other public and private stakeholders, promulgate the Implementing 
Rules and Regulation of this Act within ninety (90) calendar days from Its effectivlty.
Sec. 16. Oversight Committee. - Upon the effectivlty of this Act, the Joint 
Congressional Energy Commission established under Republic Act No. 9136 and 
renamed under Republic Act No. 11285, shall exercise oversight powers over the 
implementation of this Act.
Sec. 17. Repealing Clause. — All laws, presidential decrees, executive orders, 
and rules and regulations, or parts thereof. Inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly.
Sec. 18. Separability Clause. - If, for any reason, any section or provision of 
this Act is held unconstitutional or invalid, the other sections or provisions hereof shall 
not be affected thereby.
Sec. 19. Effectivity Clause. - This Act shall take effect after Its complete 
publication in at least two (2) national newspapers of general circulation..
Approved,
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