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Republic of the Philippines ie EIVED a
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. 4075 __

INTRODUCED BY REP. JB BERNOS

EXPLANATORY NOTE

The environmental impact of the petroleum-based transportation infrastructure,
along with the fear of peak oil or the theorized maximum extraction point of oil, has
led to renewed interest in an electric transportation infrastructure. While an effective
source of power, oil is widely perceived as an inefficient source. All vehicles are
dependent on it, and the by-products of their engines heavily contribute to air
pollution. Furthermore, the volatile movement of worldwide prices greatly affect the
domestic prices, causing prices of goods and services to increase sharply.

While we cannot totally eradicate dependence on oil until the depletion of its
reserves in the near future, we have to ensure that the country’s energy security and
independence by reducing our reliance on imported fuel for the transportation sector.
Among the many alternatives available to the fuel-based vehicles today are electric
vehicles. Adopting electric vehicles will allow costs of commuting to go down, to
around Php 2.75 per kilometer (for an electric jeepney) from Php 4.50 per kilometer
(for a diesel-powered jeepney). Most importantly, we will be able to cut our carbon
emissions from motor vehicles. While owning an electric vehicle may be high, we hope
that in the long run, ownership costs will go down as public acceptance of electric
vehicle goes up.

This Bill seeks to create a national policy to encourage the usage of electric
vehicles by mandating parking areas and charging stations for electric vehicles,
establishing an accreditation mechanism for all charging stations service providers,
creating green routes exclusive to the electric vehicles and providing incentives for
owning such vehicle.

In view of the foregoing, the immediate passage of this Bill is earnestly sought.
REP. JB BERNOS
Lone District) Abra


Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. SUE

INTRODUCED BY REP. JB BERNOS

AN ACT
PROVIDING THE NATIONAL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR THE USE OF ELECTRIC VEHICLES, AND THE
ESTABLISHMENT OF ELECTRIC CHARGING STATIONS

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

Section 1. Short Title. - This Act shall be referred to as the “Electric Vehicles
and Charging Stations Act.”

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to:

(2) Ensure the country’s energy security and independence by reducing reliance
on imported fuel for the transportation sector;

(b) Promote and support innovation in clean, sustainable, and efficient energy
to accelerate social progress and human development by encouraging public
and private use of new and alternative energy technologies; and

(©) Safeguard and improve the integrity, reliability, and stability of the country’s
electric power grid by optimizing the location of energy sources relative to
demand.

Sec. 3. Scope and Application. - This Act shall apply to the manufacture,
importation, installation, and utilization of electric vehicles and charging stations.

Sec. 4. Definition of Terms. — For purposes of this Act, the following terms
shall be defined as stated below:


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Battery electric vehicle refers to a private, government-owned, or public
utility vehicle (PUV) which is propelled by an electric motor engine, and
powered by energy stored in an on-board battery pack which is charged
through a charging station and used on public highways;

Battery pack refers to a completely functional system that includes battery
modules, battery support systems, and battery-specific controls used to store
and discharge electrical energy in an electric vehicle;

Charging fee refers to the amount imposed on electric vehicle users in
exchange for the use of facilities of public charging stations. Its individual
components shall be unbundled pursuant to regulations issued by the
Energy Regulatory Commission (ERC);

Charging station refers to the physical infrastructure built and designed to
deliver electrical energy from an electricity source to a battery pack. Its
components include connectors, conductors, fittings, and other associated
equipment. It may be for private or public use;

Charging Station Roll-Out Plan (CSROP) refers to a proposed plan of a
particular charging station service provider to install and operate charging
stations in specific gasoline stations as well as private and public buildings
and establishments within the franchised area of a distribution utility;
Charging station service provider refers to a natural or juridical person,
duly registered with the Department of Energy (DOE), who sells, installs,
maintains, owns, or operates charging stations or any of its components for
a fee;

Charging Infrastructure Development Plan (CIDP) refers to the annual
report submitted by distribution utilities to the DOE outlining, among
others, the siting of existing and planned charging stations and
synchronization of charging stations with the distribution system. It shall be
incorporated in the Distribution Development Plan and Power Development
Plan. The CIDP shall consider the submitted CSROP of a charging station
service provider which intends to operate in a distribution utility’s franchise
area;

Distribution Development Plan (DDP) refers to the expansion,
reinforcement, and rehabilitation program of the distribution system, which
is prepared by the distribution utility and submitted to the DOE for


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integration with the Power Development Plan and the Philippine Energy
Plan. In the case of electric cooperatives, such plans shall be submitted
through the National Electrification Administration for review and
consolidation;

Distribution system refers to the system of wires and associated facilities
belonging to a franchised distribution utility, extending between the delivery
points on the transmission, sub-transmission system, or generating plant
connection and the point of connection to the premises of the end-user;
Distribution utility (DU) refers to any electric cooperative, private
corporation, or government-owned utility which has a franchise to operate a
distribution system including those whose franchise covers economic zones;
Electric vehicle (EV) refers to either a battery electric vehicle or a plug-in
hybrid electric vehicle as defined under this Act;

Electric Vehicle Manufacturing Roadmap (EVMR) refers to an annual plan
to incentivize, increase, and improve manufacturing of EVs and charging
stations in the country, whether for domestic or international use, taking
into consideration the EVR, Philippine Energy Plan, and Philippine
Development Plan as well as the incentives provided for in this Act and other
relevant laws, rules, and regulations;

Electric Vehicle Roadmap (EVR) refers to an annual comprehensive plan to
accelerate the electrification of transportation. It shall include strategies
and measurable targets to increase EV adoption, hasten the build-out of
charging infrastructure, support the electrification of PUVs, incentivize
alignment with grid needs, and coordinate with grid modernization and
planning to maximize energy resources. It shall incorporate the Power
Development Plan and PUV modernization program, insofar as EVs and
charging stations are concerned. It shall be incorporated in the Philippine
Energy Plan;

Green routes refer to public transportation routes created or identified by
local government units (LGUs) to be exclusively traversed by electric PUVs;
Joint Congressional Energy Commission (JCEC) refers to the joint
congressional body created under Republic Act No. 9136, otherwise known
as the Electric Power Industry Reform Act of 2001, and renamed pursuant to


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Republic Act No. 11285, otherwise known as the Energy Efficiency and
Conservation Act;

Investment Priorities Plan (IPP) refers to the annual over-all plan prepared
by the Board of Investments (BOI) under Article 26 of Executive Order No.
226, otherwise known as the Omnibus Investments Code of 1987;

Philippine Distribution Code (PDC) refers to the set of rules that governs the
distribution system in the country promulgated by the ERC pursuant to its
mandate under Republic Act No. 9136;

Philippine Electrical Code (PEC) refers to the set of rules that ensures safety
in electrical installation and construction mandated under Republic Act No.
7920, otherwise known as the New Electrical Engineering Law;

Philippine Grid Code (PGC) refers to the set of rules and regulations
governing the reliable operation, maintenance, and development of the high-
voltage backbone transmission system and its related facilities as
promulgated by the ERC pursuant to its mandate under Republic Act No.
9136;

Philippine Energy Plan (PEP) refers to the overall energy program
formulated and updated yearly by the DOE and submitted to Congress
pursuant to Republic Act No. 7638, otherwise known as the Department of
Energy Act of 1992;

Plug-in hybrid electric vehicle refers to a private, government-owned, or
PUV which is propelled by a combination of a traditional internal
combustion engine and an electric motor engine, and powered by energy
stored in an on-board battery pack which is charged through a charging
station and used on public highways;

Power Development Plan (PDP) refers to the indicative plan for managing
electricity demand through energy-efficient programs and for the upgrading,
expansion, rehabilitation, repair, and maintenance of power generation and
transmission facilities, formulated and updated yearly by the DOE in
coordination with the generation, transmission, and distribution utilities;
Private buildings and establishments refer to residential, commercial, and
industrial structures owned or leased by private persons or juridical entities,
and in the case of commercial and industrial structures, whose goods and
services are available to the public;


(x) Private charging stations refer to charging stations installed in private
buildings and establishments which are not open for use by the public;

(y) Public buildings and establishments refer to structures owned or leased by
the government through its departments, agencies, bureaus, offices,
corporations, and LGUs; and

(2) Public charging stations refer to charging stations installed in public
buildings and establishments, gasoline stations, and select private buildings
and establishments which are available for use by the public for a fee.

Sec. 5. Role of the Department of Energy. - The DOE shall determine the
general policy direction and specific policy measures required to promote the
adoption of EVs and charging stations, and shall:

(a) Prepare the EVR together with the Department of Transportation (DOT®), in
coordination with the Department of Trade and Industry (DTI), and other
relevant government agencies;

(b) Regularly accredit charging station service providers, and publish on its
website a quarterly inventory of all accredited charging station service
providers and a list of all charging stations in the country;

(c) Require charging station service providers and DUs to submit their respective
CSROPs and CIDPs;

(@ Enforce compliance with mandatory open access installation of charging
stations as required under Sections 12 and 13 of this Act;

(e) Mandate the unbundling of charging fees imposed by public charging stations;

(f) Aggregate and centralize data from ERC, DTI, DOTr, Department of
Environment and Natural Resources (DENR), Land Transportation Office
(LTO), Land Transportation Franchising and Regulatory Board (LTFRB),
Metro Manila Development Authority (MMDA), Philippine Competition
Commission (PCC), LGUs, and other relevant government agencies insofar as
EVs and charging stations are concerned; and

(g) Perform all other acts that are analogous to the foregoing, which are necessary
and incidental to accomplish the policy objectives of this Act.

Sec. 6. Role of the Energy Regulatory Commission. - In addition to its
functions under Republic Act No. 9136, the ERC shall:


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Promulgate uniform and streamlined rules, requirements, and standards for
the following:

(@) Application of charging station service providers with DUs,

(ii) Connection of charging stations to the distribution system, and

(ii) Operation of self-generating charging stations;

Ensure charging stations are compliant with the PEC, PDC, PGC, and other
relevant laws, rules, regulations, and standards. The ERC shall conduct
regular inspections towards this end;

Regulate the rates charged by DUs on all charging stations, taking into
account, among others, the utilization of the charging station, the promotion
of efficiency, the unique requirements of charging stations, and its effect on
the DU’s demand profile and distribution system;

Exercise exclusive jurisdiction over all matters that pertain to rate setting in
this Act; and

Perform all other acts that are analogous to the foregoing, which are
necessary and incidental to accomplish the policy objectives of this Act.

Sec. 7. Role of the Department of Transportation. - In addition to its

functions under Executive Order No. 292, otherwise known as the Administrative
Code of 1987, as amended by Republic Act No. 10844, otherwise known as the
Department of Information and Communications Technology Act of 2015, the DOTr

shall:
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Prepare the EVR together with the DOE, in coordination with the DTI and
other relevant government agencies;

Determine specific classifications for EVs, and promulgate uniform and
streamlined rules and requirements for their registration;

Incorporate the electrification of PUVs in its PUV modernization program;
and

Mandate the inclusion of green routes in the respective Local Public
Transport Route Plans of the LGUs.

Sec. 8. Role of the Department of Trade and Industry. - In addition to its

functions under existing laws, the DTI shall:


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(a) Establish national quality and safety standards for EVs, battery packs,
charging stations, and other associated equipment. These standards shall
include terminology, product, process, service, and interface;

(b) Prepare the EVMR, in coordination with DOE, DOTr, BOI, and other

relevant government agencies; and

(©) Coordinate with the DOE and DOTr in the preparation of the EVR.

Sec. 9. Role of Local Government Units. — In addition to its functions under
Republic Act No. 7160, otherwise known as the Local Government Code of 1992,
LGUs shall:

(a) Identify green routes in their respective Local Public Transport Route Plan;
(b) Include the electrification of PUVs in their respective development plans; and
(© Ensure compliance of public and private buildings and establishments with

Section 11 of this Act.

Sec. 10. Role of the Department of Environment and Natural Resources. - In
addition to its functions under Executive Order No. 192, otherwise known as
Providing the Reorganization of the Department of Environment, Energy and
Natural Resources and Renaming it to the Department of Environment and Natural
Resources, the DENR shall, in consultation with the DOE, DOTr, DTI, and other
public and private stakeholders, promulgate rules and guidelines on the recycling
and disposal of battery packs and other components of an EV.

Sec. 11. Dedicated Parking Slots for Electric Vehicles in Private and Public
Buildings and Establishments. — Private and public buildings and establishments
constructed after the effectivity of this Act and pursuant to Republic Act No. 6541,
otherwise known as the National Building Code of the Philippines, shall designate
dedicated parking slots for the exclusive use of EVs: Provided, That the number of
dedicated parking slots shall be proportional to the total number of parking slots
within the building or establishment. Provided further, That the use of dedicated
parking slots by vehicles other than EVs shall be punishable under Section 22 of this
Act. Provided finally, That existing private and public buildings and establishments
upon the effectivity of this Act shall comply with the foregoing requirements within
five (5) years from effectivity of this Act.


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No permit shall be issued for the construction or renovation of a building or
establishment unless the owner submits to the building official of the relevant LGU
and DOE a sworn affidavit that there are parking spaces dedicated for the exclusive
use of EVs, and a copy of the building plan incorporating the same.

Sec. 12, Open Access Installation of Charging Stations in Dedicated Parking
Slots. — Dedicated parking slots built in accordance with Section 11 shall be installed

_ With a charging station. Provided, That the owner of the private or public building or

establishment shall allow a third party charging station service provider to install,
operate, or maintain the charging station, or enter into any other contractual
arrangement with such third party charging station service provider in fair,
reasonable, and nondiscriminatory terms: Provided further, That the owner of the
private or public building or establishment may act as its own charging station
service provider by constituting itself as a charging station service provider pursuant
to the provisions of this Act: Provided finally, That if a DU engages in the business of
a charging station service provider, it shall do so in accordance with Section 26 of
Republic Act No. 9136.

Sec. 13. Open Access Installation of Charging Stations in Gasoline Stations. —
Gasoline stations shall designate dedicated spaces for the installation of charging
stations: Provided, That the owner of the gasoline station shall allow a third party
charging station service provider to install, operate, or maintain the charging station,

“or enter into any other contractual arrangement with such third party charging

station service provider in fair, reasonable, and nondiscriminatory terms: Provided
further, That the owner of the gasoline station may act as its own charging station
service provider by constituting itself as a charging station service provider pursuant
to the provisions of this Act: Provided finally, That a gasoline station shall not be
issued a construction, operation, or compliance permit by the DOE unless the owner
submits a sworn affidavit that there is ample space for the construction of charging
stations within its premises.

Sec. 14. Use of Charging Stations in Dedicated Parking Spaces and Gasoline
Stations. — All charging stations installed in public buildings and establishments,
and gasoline stations shall be public charging stations. Private buildings and


establishments may designate public charging stations. Only public charging
stations shall be allowed to impose and collect charging fees.

Sec. 15. Permits for the Installation of Charging Stations. — All government
agencies including LGUs shall provide for a uniform and streamlined permitting
process for the installation, operation, maintenance, replacement, and removal of
charging stations: Provided, That the process shall be covered by the provisions of
Republic Act No. 11234, otherwise known as the Energy Virtual One-Stop Shop Act.

Sec. 16. Duties and Responsibilities of Charging Station Service Providers. —
A charging station service provider shall have the following duties and
responsibilities:

(2) Comply with the rules, requirements, and standards of the DOE and ERC in
accordance with Sections 5 and 6 of this Act, and permits and licenses of
government agencies and LGUs in accordance with Section 15 of this Act;

(b) Pay the DU for electricity consumption from the use of the charging station in
cases where the charging station service provider is the owner or operator of
the charging station; and

(©) Regularly submit to the DOE an unbundled structure of the charging fees
imposed on EV users, in the case of public charging stations owned or
operated by the charging station service provider.

Sec. 17. Fiscal Incentives. — The following activities shall be included in the
annual IPP of the BOI and shall be entitled to the incentives provided under
Executive Order No. 226 and other applicable laws for ten (10) years from the
effectivity of this Act: Provided, That after the aforementioned period, the inclusion
of these activities in the annual IPP shall be reviewed and may be extended by the

BOI:

(@) The purchase and importation of capital equipment, spare parts, and
components used in the manufacture or assembly of electric vehicles and
the construction of charging stations; and

(b) The manufacture or assembly of completely knocked-down parts, semi
knocked-down parts, and semi-built units of electric vehicles and the
construction of charging stations.


EV users shall be granted the following fiscal incentives, which shall be
available for nine (9) years from the effectivity of this Act:

(a) Exemption from the payment of value added taxes in the purchase of EVs;

(b) Exemption from the payment of the motor vehicle user’s charge imposed by
the LTO under Republic Act No. 8794, otherwise known as Motor Vehicle
User’s Charge Act; and

(©) Exemption from on-street parking fees imposed LGUs to local traffic and
zoning ordinances, and other similar rules and regulations.

Sec. 18. Non-Fiscal Incentives. - EV users shall be granted the following non-
fiscal incentives, which shall remain in force from the effectivity of this Act until
explicitly repealed:

(a) Prioritization in the registration and renewal of registration, and issuance

of a special type of vehicle plate by the LTO in accordance with Section 7(b)
of this Act;

(b) Exemption from the mandatory unified vehicular volume reduction
program, number-coding scheme, or other similar schemes implemented
by the MMDA, other similar agencies, and LGUs; and

(©) Prioritization with the LTFRB in the approval of applications for franchise
to operate, including its renewal, for PUV operators that are exclusively
utilizing EVs.

Sec. 19. Financial Assistance. — Government financial institutions and other
financial institutions, in accordance with and to the extent allowed by the enabling
provisions of their respective charters or applicable laws, provide concessional
financial packages for entities engaged in the activities mentioned in the first
paragraph of Section 17 of this Act.

Sec. 20. Public Access to Information. - The DOE, DOTr, DTI, DENR, ERC,

.LTO, LTFRB, MMDA, LGUs, and other relevant government agencies shall allow

public access to all data and information in relation to the implementation of this
Act: Provided, That such access is subject to Section 21 of this Act.


Sec. 21. Confidentiality. - The DOE, DOTr, DTI, DENR, ERC, LTO, LTFRB,
MMDA, LGUs, and other relevant government agencies shall not disclose any
proprietary and confidential data unless prior consent of the source or owner of such
data has been obtained by the requesting party, and that such disclosure is in
accordance with Republic Act No. 10173, otherwise known as the Data Privacy Act of
2012, and other relevant laws and regulations.

Sec. 22. Penalties. - Without prejudice to civil liability, the following penalties
shall be imposed upon any person, both natural and juridical, found guilty of
violating Sections 11, 12, 13, and 14 of this Act:

(@) First Offense — the penalty of arresto mayor or a fine of twenty thousand
pesos (PhP 20,000.00), or both, at the discretion of the court;

(b) Second Offense — the penalty of prision correccional or a fine of fifty
thousand pesos (PhP 50,000.00), or both, at the discretion of the court; and

(©) Third Offense — the penalty of prision mayor or a fine of eighty thousand
pesos (PhP 80,000.00), or both, at the discretion of the court.

Sec. 23. Congressional Oversight. - The JCEC shall exercise oversight powers
over implementation of this Act. The DOE, DOTr, DTI, DENR, ERC, LTO, LTFRB,
MMDA, PCC, and other relevant government agencies shall submit annual reports,
which shall include the latest relevant data, implementation reports, and regulatory
issuances, among others, to the JCEC not later than the fifteenth day of September.

Sec. 24. Implementing Rules and Regulations. - The DOE together with the
DOTR, and in coordination with DTI, DENR, ERC, LTO, LTFRB, MMDA, PCC, and
other relevant government agencies and other electric power industry stakeholders,
shall issue the implementing rules and regulations of this Act within sixty (60) days
upon its effectivity.

Sec. 25. Separability Clause. — If any portion or provision of this Act is
declared unconstitutional, the remainder of this Act or any provisions not affected
thereby shall remain in force and effect.


Sec. 26. Repealing Clauses. - Any law, presidential decree or issuance,
executive order, letter of instruction, rule or regulation inconsistent with the
provisions of this Act is hereby repealed or modified accordingly.

Sec. 27. Effectivity Clause. - This Act shall take effect fifteen (15) days
following its complete publication in the Official Gazette or a newspaper of general
circulation.

Approved,