Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 7607

Introduced by HONORABLE WES GATCHALIAN

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

EXPLANATORY NOTE

This proposed measure, to begin with, stands on a constitutional provision that
mandates the state to “protect and advance the right of the people to a balanced and
healthful ecology in accord with the rhythm and harmony of nature.” In line with this
mandate, the Philippines, through the Senate, ratified the Paris Agreement on
Climate Change on 23 March 2017, which aims to “keep a global temperature rise
this century well below 2 degrees Celsius above pre-industrial levels and to pursue
efforts to limit the temperature increase even further to 1.5 degrees Celsius.”?

However, according to the 2019 report of IQAir, the Philippines had an Air Quality
Index (AQl) of 63 {i.e., the level of health concern is moderate), a notch above the
World Health Organization exposure recommendation (i.e., an AQI from 50 and below
is recommended).° In the 2018 Annual report of the Department of Environment and
Natural Resources - Environmental Management Bureau (DENR-EMB), it was shown
that the majority (at 65%) of air pollutants came from mobile sources such as cars,
motorcycles, trucks and buses.*

The Duterte Administration, in July 2019, acknowledged that continued coal
dependence is one of the key reasons why the Philippines has not been on track to
meet its Nationally Determined Contribution (NDC) target in the Paris Agreement
(.c., 70% below BAUS by 2030). In April 2019, the president signed into law Republic
Act No. 11285, or the Energy Efficiency and Conservation Act, which established the

CONST. art 1, §16.
2 The United National Climate Change. (2020). The Paris Agreement. Retrieved from https:/ /unfece.int/process-and-
‘meetings /the-paris-agreement/the-paris-agreement

21Q Air. (2020). Air Quality in the Philippines. Retrieved from https:/ /www.iqair.com /us/philippines

+ Department of Environment and Natural Resources - Environmental Management Bureais, (2019). Annual Report
CY 2018. Retrieved from https://emb.gov.ph/wp-content /uploads/2019 /04/EMB-ANNUAL-REPORT-FOR-CY-
2018. pdf

5 Business As Usual (BAU) is a scenario for future patterns of activity which assumes that there will be no significant
‘change in people's attitudes and priorities, or no major changes in technology, economics, or policies, s0 that normal
circumstances can be expected t continue unchanged.

* Official Gazette, (2019). Rodrigo Roa Duterte, Fourth State of the Nation Address, July 22, 2019. Retrieved from
https: / /wnww officialgazette.gov ph /2019/07 /22/rodrigo-roa-duterte-fourth-state-of-the-nation-address-july-22-
2019/

fe RECEIVED
& DATE: SEP 08 af



general governance and strategies to improve energy use in the nation, with the
Department of Energy (DOE) as the lead agency.’

Evidently, gradually shifting to renewable sources of energy (renewables) in order to
diversify the power mix can address the Philippines’ problem on energy supply.
Renewables can enhance the energy reliability, reduce emissions, while supporting
the target of the administration to reach 100% electrification by 2022.9 One of the
trends today that promotes renewable energy is electric vehicles. The Philippine
government has been promoting the use of electric vehicles. For instance, Executive
Order No. 488, series of 2006, supports the manufacturing of e-vehicles, as well as
to further reduce the country’s fossil fuel consumption.'° This issuance reduced the
tariff rate for e-vehicle components to zero, thereby allowing e-vehicle manufacturers
to import components at a more affordable price.!!

On the public sector, the Community Optimized Managed Electric Transport
(COMET) jeepneys, by Global Electronic Transport (GET), has been operating in 2014
in Metro Manila.!2 The Public Utility Vehicle Modernization Program (or the Jeepney
Modernization Program) of the Department of Transportation (DOT) requires
replacement vehicles to have either a Euro-4 compliant engine or an electric engine
to lessen pollution. On the private sector, while electronic bicycles and scooters
have been available in the market for quite some time now, their demand increased
at the height of the pandemic where common public modes of transportation are
unavailable.

‘This proposed measure creates a national policy and framework to encourage the
uptake of electric vehicles in the public and private sector, which includes:
(1)mandating all gasoline stations as well as public and private establishments to
have designated parking areas for EVs; (2) requiring all designated EV parking areas
to be installed with charging stations; (3) establishing an accreditation mechanism
for all charging station service providers; (4) creating green routes exclusive to
electric public utility vehicles; (5) including domestic EV manufacturing in the
Investment Priorities Plan; and (6) providing value added tax exemption for purchase
of electric vehicles.

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

1s Djtrict of Vaténzuela

7 Rep. Act No. 11285 (2018).
' Climate Action Taker. (2019). Philippines. Retrieved from https:/ /climateactiontracker.org/countries/philippines/
° Lucas. (2016). DOE alms for 100% electrification by 2020. Inquirer. Retrieved. from
https: / /business.inquirer.net/216153 /doe-aims-for-100-electrfication-by-2020

'® Exec. Order No. 488 (2006).

' Department of Trade and Industry and Board of Investments. (no date). B-Vehicles, Retrieved from
industry.gov.ph/industry /e-vehicles/

2 Ranada. (2013}. Welcome E-shuttle, bye-bye PH jeepney. Rappler. Retrieved from https:/ /rappler.com/nation /e-
shuttle-comet-ph-jeepney

8 DOTr Deptt Order No. 2017-011 (2017). Omnibus Guidelines on the Planning and Identification of Public Road
‘Transportation Services and Franchise Issuance, § 5.2.1



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Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 7607

Introduced by HONORABLE WES GATCHALIAN

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

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

CHAPTER I
GENERAL PROVISIONS

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:

(a) 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;

() 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; and

(d) Promote inclusive and sustainable industrialization while recognizing the
role of the private sector, in order to support the transition to new

technologies, generate jobs, spur small and medium enterprise growth,


attract investments, grow globally competitive and innovative industries,
and upgrade the country’s participation in regional and global value chains.

SEC. 3. Scope and Application. - This Act shall apply to the manufacture,

importation, installation, utilization, and regulation of electric vehicles, charging

stations, parts and components, and batteries.

SEC. 4. Definition of Terms. - For purposes of this Act, the following terms

shall be defined as stated below:

(a)

(b)

(9

(a)

)

i)

Battery electric vehicle refers to an electrically propelled vehicle with only a
traction battery as power source for vehicle propulsion;

Battery pack refers to the mechanical assembly comprising battery cells and
retaining frames or trays, and possibly components for battery management;
Certificate of Inspection refers to a document issued by the building official
of a local government unit (LGU) to the owner or applicant as a requirement
for the installation of power lines to a building or structure to certify the
completeness of the installation of all electrical wirings, pursuant to
Republic Act No. 6541 as revised by Presidential Decree No. 1096, otherwise
known as the National Building Code of the Philippines;

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

Charging station refers to all equipment for delivery of alternating current or
direct current to EVs, installed in an enclosure with special control functions
and communications, and may be located off the vehicle. For the purposes
of this Act, charging stations shall include battery swapping stations;
Charging station service provider refers to a natural or juridical person, duly
accredited by the Department of Energy (DOE), who sells, installs,
maintains, owns, or operates charging stations or any of its components for
a fee;

Comprehensive Roadmap on Electric Vehicles (CREV) refers to a national plan
with an annual work plan to accelerate the electrification of transportation
in the country with four components: electric vehicles and charging stations,

manufacturing, research and development, and human resource


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development. It shall be incorporated in the Philippine Energy Plan and the
National Transport Policy;

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 or authority to operate a
distribution system including those whose franchise or authority covers
economic zones;

Electric vehicle (EV) refers to a vehicle with at least one electric drive for
vehicle propulsion. For the purposes of this Act, it includes a battery electric
vehicle, hybrid-electric vehicle, and a plug-in hybrid-electric vehicle;

Green routes refer to public transportation routes created or identified by
LGUs and approved by the Department of Transportation (DOT:) to be
exclusively traversed by electric public utility vehicles (PUVs);
Hybrid-electric vehicle refers to a vehicle with both a rechargeable energy
storage system and a fueled power source for propulsion;

Importer refers to any individual, partnership, corporation, or other entity
engaged in the importation of completely built units of EV, charging stations,
parts and components, and batteries incorporated, organized, and existing
under Philippine laws;

Manufacturer or assembler refers to any individual, partnership, corporation,
or other entity engaged in the manufacture and assembly of EVs
incorporated, organized, and existing under Philippine laws;

Plug-in hybrid-electric vehicle refers to a hybrid-electric vehicle with
rechargeable energy storage system that is intended to be charged from an
external electric energy source;

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;

Private charging stations refer to charging stations installed in private
buildings and establishments which may be open for use by the public for a

fee;


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

(8) Public charging stations refer to charging stations installed in public
buildings and establishments, and gasoline stations, which are available for

use by the public for a fee.

CHAPTER II
ROLE OF GOVERNMENT AGENCIES

SEC. 5. Government Regulations. - All regulations related to the use of EVs
and the establishment of charging stations shall be structured to facilitate the
creation of an enabling environment for equitable and non-discriminatory private
sector participation, with preference for indigenous technologies, to attain the long-

term goal of stable energy prices and energy sufficiency.

SEC. 6. Role of the Department of Energy. - The DOE shall be the primary
agency tasked with the promotion of the adoption of EVs and the development of
charging infrastructure. Towards this end, the DOE shall:

(a) Harmonize existing policies and promulgate uniform and streamlined rules,
regulations, and standards on the use, operations, and maintenance of
charging stations, in coordination with other concerned agencies, to include
the accreditation of charging station service providers and requirements by
DUs on charging station service providers;

(b) Develop and update the EV and charging stations component of the CREV in
coordination with the DOTr, Department of Trade and Industry (DTI),
Department of Environment and Natural Resources (DENR), Department of
Public Works and Highways (DPWH), LGUs and other relevant national
government agencies (NGAs). The component shall be finished not later than
the 30% of May of every year;

(c) Develop and update the CREV by compiling its various components. The
CREV shall be released to the public not later than the 30 of September of
every year;

(d) Harmonize existing guidelines and issuances related to the promotion of the
adoption of EVs and charging stations, and issue plans and programs on the

same;


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(c) Implement, together with DOTr and DTI, plans and program pursuant to
Section 6(d) of this Act through information, education, communication, and
demonstration campaigns consistent with the CREV;

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

(g) Require DUs to submit their respective charging infrastructure development
plans as part of their Distribution Development Plans not later than 30th of
August of every year;

(h)

Enforce compliance with mandatory open access installation of charging

stations as required under Sections 16 and 17 of this Act;

() Ensure charging stations are compliant with the Philippine Electrical Code,
Philippine Distribution Code, and other relevant standards;

() Aggregate and centralize data from ERC, DTI, DOTr, DENR, Land
‘Transportation Office (LTO), Land Transportation Franchising and Regulatory
Board (LTFRB), Metro Manila Development Authority (MMDA), Philippine
Competition Commission, LGUs, and other relevant NGAs insofar as EVs and
charging stations are concerned; and

(k) 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 Energy Regulatory Commission. — In addition to its

functions under Republic Act No. 9136, otherwise known as the Electric Power
Industry Reform Act of 2001, the ERC shall:

(a) Promulgate uniform and streamlined rules and requirements for self-
generating charging stations and centralized vehicle-to-grid facilities;

(b) 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;

(c) Mandate the unbundling of charging fees;

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

(c) Perform all other acts that are analogous to the foregoing, which are necessary

and incidental to accomplish the policy objectives of this Act.


SEC. 8. Role of the Department of Transportation. “The DOTr shall be the
primary agency tasked with the development of EV demand generation, and the
regulation, registration, and franchising of EVs. Towards this end, the DOTr shall:

(a) Coordinate with the DOE and other relevant NGAs in the preparation of the

EV and charging stations component of the CRE!

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6 (b) Issue relevant policies on the use, operations, inspection, registration, and
” franchising of EVs;
8 (©) Conduct information, education, communication, and demonstration
9 campaigns, together with the DOE and DTI;

) (d) Mandate the inclusion of green routes in the respective Local Public Transport
1

Route Plans of the LGUs; and

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

14

Is SEC. 9. Role of the Department of Trade and Industry. - The DTI shall be the

16 primary agency tasked with industry development of EVs, charging stations, parts
17 and components, and batteries. Towards this end, the DT! shall:

18 (a) Formulate relevant Philippine National Standards for consumer protection
19 and trade facilitation, and conduct a regular review of these standards for
20 possible revision or updating to align with developments in trade and latest
2 technology of EVs;

2 (b) Regulate the quality and safety of the parts and components of EVs, charging
23 stations, and batteries by implementing relevant standards to ensure the
24 manufacture, production, and distribution of quality products for the
25 protection of the consumer;

26 () Develop and update the manufacturing component of the CREV, in
oy coordination with DOE, DOTr, Board of Investments (BOI), and other relevant
28 NGAs with a focus on EV, charging stations, parts and components, and
29 battery manufacturing. The manufacturing component shall be submitted to
30 the DOE not later than the 30" of May of every year;

31 (d) Develop and update the human resource development component of the
32 CREV, in coordination with the Department of Labor and Employment,
33 Technical Education and Skills Development Authority, Commission on
34 Higher Education, and other relevant NGAs. The human resource
35 development component shall be submitted to the DOE not later than the 30
36 of May of every year;


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(¢) Coordinate with the DOE and other relevant NGAs in the preparation of the

EV and charging stations component of the CREV;

() Develop, in coordination with the BOI and other relevant NGAs, the EV
incentive strategy pursuant to Section 23 (a) of this Act; 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. 10. Role of Local Government Units. - In addition to its functions under
existing laws, LGUs shall:

(a) Identify green routes in their respective Local Public Transport Route Plans
consistent with the National Transport Policy;

(b) Include the electrification of PUVs in their respective development plans;

(c) Issue Certificates of Inspection to charging stations;

(d) Submit to DOE not later than 30% of January of every year the list of all
charging stations in their respective localities; and

(e) Ensure compliance of public and private buildings and establishments with
Section 15 of this Act.

SEC. 11. Role of the Department of Environment and Natural Resources. - In
addition to its functions under existing laws, 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 EVs, charging stations, parts and
components, and batteries. The DENR, in coordination with the DOTr, shalll include
EVs in the comprehensive air pollution management and control program from motor
vehicles including greenhouse gas emissions monitoring in accordance with Republic
Act No. 8749, otherwise known as the Clean Air Act of 1999.

SEC. 12. Role of the Department of Public Works and Highways. - In addition
to its functions under existing laws, the DPWH shall establish guidelines on the
following:

(a) Construction of charging stations and other EV support infrastructure in
buildings and other establishments; and
(b) Issuance of permits for the construction or renovation of buildings or

establishments pursuant to Section 15 of this Act.


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SEC. 13. Role of the Department of Science and Technology (DOST). ~ In
addition to its functions under existing laws, the DOST shall develop and update the
research and development component of the CREV, in consultation with the DTI and
other relevant NGAs. The research and development component shall be submitted
to the DOE not later than the 30% of May of every year.

CHAPTER II
DEMAND GENERATION AND INDUSTRY DEVELOPMENT

SEC. 14. Mandatory EV Share in Corporate and Government Fleets. - The
following entities shall ensure that at least five percent (5%) of their fleet shall be EVs
within the timeframe indicated in the CREV: Provided, That the CREV shall provide
a timeline for the gradual increase of such percentage until the entire fleet is fully
electrified:

(a) Industrial and commercial companies such as cargo logistics companies, food
delivery companies, tour agencies, hotels, power utilities, and water utilities;

(b) Public transport operators, including buses, jeepneys, tricycles, taxis, and
transport network vehicle services; and

() LGUs, NGAs, and government-owned and controlled corporations: Provided,

That the electrification of government fleets shall be considered compliance

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

Conservation Act.

SEC. 15. 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 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 27 of this Act: Provided finally, That existing private and
public buildings and establishments shall comply with the foregoing requirements
within the timeframe indicated in the CREV.

No permit shall be issued for the construction or renovation of a building or

establishment unless this Section has been complied with.


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SEC. 16. Open Access Installation of Charging Stations in Dedicated Parking
Slots. — Dedicated parking slots built in accordance with Section 15 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 as implemented by ERC through its applicable rules and
guidelines on business separation and unbundling.

SEC. 17. 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
shows that there is ample space for the construction of charging stations within its

premises.

SEC. 18. Use of Charging Stations in Dedicated Parking Spaces and Gasoline
Stations. - All public stations shall be open to the public. All private charging
stations may be opened to the public. Both public and private charging stations
shall be allowed to impose and collect charging fees.

SEC. 19. 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


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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. 20. Duties and Responsibilities of Charging Station Service Providers. - A
charging station service provider shall have the following duties and responsibilities:
(a) Comply with the rules, requirements, and standards of the DOE and ERC in
accordance with Sections 6 and 7 of this Act, and permits and licenses of
government agencies and LGUs in accordance with Section 19 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

(c) Regularly submit to the ERC 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. 21. Green Routes. - Green routes shall be created or identified by LGUs
in their respective localities and approved by the DOTr in accordance with Sections
8(d) and 10(a) of this Act.

SEC. 22. Safety, Health, and Environment, ~ All manufacturers, assemblers,
importers, charging station service providers, operators of testing facilities, and users
of EVs and charging stations shall comply with all relevant health, safety, and
environmental laws, rules, and regulations related to the manufacture, assembly,
installation, operation, and utilization of EVs and charging stations.

CHAPTER IV
INCENTIVES

SEC. 23. Fiscal Incentives. -

(a) Manufacturing
The following activities shall be included in the annual Investment
Priorities Plan (IPP) of the BOI and shall be entitled to the incentives provided
under Executive Order No. 226, otherwise known as Omnibus Investment
Code of 1987, and other applicable laws for ten (10) years from the effectivity
of this Act: Provided, That after the aforementioned period, the inclusion of

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these activities in the annual IPP shall be reviewed and may be extended by
the BOI:
() Manufacture and assembly of EVs, charging stations, and parts and
components; and
(ii) The establishment and operations of charging stations.

In addition, the DTI, in coordination with BOI, shall craft and
implement an EV incentive strategy, as part of the manufacturing component
of the CREV, similar to Executive Order No. 182 series of 2015, otherwise
known as the Comprehensive Automotive Resurgence Strategy Program. The
incentive strategy shall:

(i) Narrow the cost gap between EVs and traditional motor vehicles and
enable the shift of the local traditional motor vehicle industry to EVs;

(ii) Provide time-bound, targeted, performance-based, and transparent
fiscal and non-fiscal support in order to attract EV and EV parts
manufacturing, particularly electronic parts and other strategic
components, batteries, charging stations, and the establishment of
testing facilities; and

(iii) Set local production targets to be achieved within seven (7) years from
the promulgation of the incentive strategy, subject to extension as
determined by the DTI.

The DTI, in coordination with the BOI, shall establish the application
and selection process for enrollment and qualification of participants,
imposing such terms and conditions as it may deem necessary to promote the
objectives of the incentive strategy.

(b) Importation
‘The importation of completely built units of EVs and charging stations
shall be exempt from the payment of excise taxes, duties, and value-added tax
(VAT) for nine (9) years from the effectivity of this Act: Provided, That in the
case of imported electric jeepneys and electric tricycles, the Department of
Finance, upon recommendation of the BOI, may suspend the exemption in

order to protect local manufacturers.
(c) Utilization
The following shall be granted the following fiscal incentives, which

shall be available for nine (9) years from the effectivity of this Act:

a


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(i) Exemption from the payment of VAT in the purchase of EVs and
charging equipment; and

(ii) A thirty percent (30%) discount 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, as well as vehicle

registration and inspection fees.

SEC. 24. Non-Fiscal Incentives.
fiscal incentives, which shall remain in force for nine (9) years from the effectivity of

EV users shall be granted the following non-

this Act:

(a) Expeditious registration and renewal of registration, and issuance of a
special type of vehicle plate by the LTO;

(b) Exemption of electrified PUVs 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

(€) Expeditious processing by the LTFRB of applications for franchise to
operate, including its renewal, for PUV operators that are exclusively

utilizing EVs.

Sec. 25. 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, are encouraged to provide
concessional financial packages for entities engaged in the activities mentioned in
Section 23 of this Act, and preferential interest rates and payment scheme on
consumer loans for the acquisition of EVs and electric charging stations.

The Bangko Sentral ng Pilipinas shall encourage banks to lend a certain
percentage of their portfolio to EV, charging stations, and battery manufacturers,
assemblers, and end users: Provided, That financing packages for EV fleets shall be

prioritized and the procedure shall be streamlined.

CHAPTER V
FINAL PROVISIONS

Sec. 26. Establishment of Dedicated Offices. - The DOE, DOTr, and DTI shall
establish dedicated offices for the effective implementation of this Act. The

organizational structure and staffing complement shall be determined by the

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Secretaries of DOE, DOTr, and DTI, in consultation with the Department of Budget
and Management, and in accordance with existing civil service rules and regulations.
The budgetary requirements necessary for the establishment of the dedicated offices
shall be taken from the current appropriations of each agency concerned. Thereafter,
the funding for the dedicated offices shall be included in the annual General
Appropriations Act.

Sec. 27. Penalties. - The DOE, DOTr, and DPWH shall impose fines and
penalties upon any person, both natural and juridical, found guilty of violating
Sections 15, 16, 17, 18, and 19 of this Act. The fines and penalties shall range from
a minimum of fifty thousand pesos (P50,000.00) to a maximum of five hundred
thousand pesos (P500,000.00), and may include suspension or revocation of permits
issued: Provided, That this is without prejudice to the penalties provided under
existing regulations prescribed by other concerned agencies. The DOE, DOTr, and
DPWH, in coordination with the DTI, DILG, and DENR shall issue appropriate rules
and regulations on the imposition of these fines and penalties.

Sec. 28. Congressional Oversight. - The Joint Congressional Energy
Commission (JCEC) shall exercise oversight powers over implementation of this Act.
The DOE, DOTr, DTI, and other relevant NGAs shall submit the CREV and a report
on the implementation of this Act to the JCEC not later than the 1* day of December
of every year.

Sec. 29. Implementing Rules and Regulations. - The DOE together with the
DOTR, in coordination with DTI, and in consultation with other relevant NGAs and
public and private stakeholders, shall issue the implementing rules and regulations
of this Act within one hundred twenty (120) days upon its effectivity.

Sec. 30. 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. 31. 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.

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Sec. 32. 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,

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