Energy Efficiency and Conservation Act (Republic Act No. 11285)

(a) Institutionalize energy effi.ciency and conservation as a national way of life geared towards the efficient and judiciam, utilization of energy by formulating, developing, and 2 3 implementing energy efficiency and conservation plans and clemonstrating high levels of experience, competence, proficiency, programs to secure sufficiency and stability of energy supply and ethical fitness in the energy management profession, and in the country to cushion the impact of high pnces of rmported who shall be chosen by 'I'ype 2 designated establishments to fuels to local markets and protect the environment i.n support plan, lead, manage, coordinate, monitor, and evaluate the of the economic and social development goals of the country; implementation of sustainable energy management with.in their organizations;

(b) Promote and e n courage the develo p m e nt a n d utilization o f efficient renewable e nergy technologies and

(c) Designatecl establishment refers to a private or public systems to ensure op timal use and sustainability of the e n tity in the com m e rcial, industrial, transp ort, p ower, country's energy resources; agricuJ.tme, public works, and other sectors identified by the Department of E nergy (D OE) as energy intensive industries (e) Reinforce related laws and other statutory provisions based on their annual energy consumption in the previous year for a comprehensive approach to energy efficiency, conservation, or an equivalent annual index; the amount of consumption is sufficiency, and sustainability in the country; and inclicated in this Act and subject to adj ustment by the D OE as it deems necessary;

(d) Ensme a market-driven approach to energy efficiency, conservation, sufficiency, and sustainabihty in the country . . (d) Distribution núlity refers to any electric cooperative, pnvate corporation, government-owned utility, or existing local SEC. 3 . Scope. - This Act shall establish a framework government unit (LGU) which has an exclusive franchise to for i.ntroducing and institutionalizing fundamental policies on operate a distribution system inclueling those whose franchise energy efficiency and conservation, including the promotion of covers economic zones; efficient and j udicious utib.zation of energy, incre ase in the utilization of energy e fficiency a n d r e n e w able energy

(e) Department of Energy (DOE) refers to the agency technologies, and the delineation of responsibilities among createcl thxough Republic Act No. 7638, otherwise known as various government agencies and private entities. the "Department of Energy Act of 1992", and whose functions were exp anded by Republic Act No . 9 1 36, otherwise known SEC. 4. Definition of Terms. - For the plll'poses of this as the "Electric Power Ind ustry Reform Act of 2001"; Act, the following terms shall have the meani.ngs below unless indicated otherwise:

(f) Ene rgy r e fers to all typ e s of e n e r gy availa ble commercially inclueling natural gas 0iquid natural gas anel (a) Certified Energy Conseruation Officer (CEGO) refers liquid oil gas), ali heating anel cooling fuels (including district to _a professional w ho obtains a certification as a CECO . after heating anel district cooling) , coal, transp ort fuel s., and demonstrating high levels of ex--p erience, competence, profic1ency, renewable energy sources; and ethical fitness in the energy management profession, and who shall be responsible for the supervision and maintenance

(g) Energy au.dit refers to the evaluation of energy of the facilities of Type 1 designated establishments for the consumption anel review of current energy cost to determine proper management of energy consumption and s uch _other appropriate i.ntervention measures and efficiency projects in functions deemed necessary for the efficient and J Ud1c1ous which energy can be judiciously and efficiently usecl to achieve utilization of energy under this Act; savings . It may refer to a walk-through audit, a preliminary audit, or a detailed audit; (b) Certifiecl Energy Manager (CEM) refers to a licensed e ngine e r w h o obtains a ce r tification as a C E M a fter

(h) Energy auditor refers to individuals or entities certifi e d by the DOE who h a ve prove n cre d ibility and 5 4 le ad to lower energy or utility costs during operation anel rgy aud it: Pro uid ed, Tha� the com petenc e to con duct an ene maintenance ; of ene rgy au d1tors sha tl be guid eline s in the cert ifica tion sultation with stak eho lde rs; dev elop ed by the DO E upo n con (o) Energy end user refers to all inelividuals anel entities which consume energy to include households, industrial anel the red ucti on of lass es

(i) Ene rgy conser uat ion refe rs to commercial customers, power plants, distribution utilities anel stag es from ene rgy pro duct1on anel wastage in various ene rgy transmission utilities; the ado ption of app ropna te to ene rgy con sum ptio n thr oug h _ y feasible, econom1cally sou nel, measuTes tha t are teclm.o logicall (p) Energy la.beling refers to the Philippine Ener gy ally affo rdable; env iron mentally -frie nclly, and soci Standards and Labeling Program (PESLP) w hich requires manufacturers to attach an energy label on their products to seru atio n Rep ort (ECCR) G) Ene rgy Con sump tion anel Con mform consumers about the energy performance and efficiency mitteel to the DO E by _ Typ e refe rs to the p erio dic rep ort sub of the procluct; hm ents, distribut10n utili.ties , 1 and Typ e 2 elesign ate d establis with reg arel to the Na tion al and the tra nsm issi on utility (q) Energy nwnagement refers to the process of design.ing ation Pla n containing, am ong Ene rgy Efficie ncy and Con serv and 1mple m e ntmg an op tim al p r o gr a m of p urchasing, rgy loss , anel status of ene rgy others , ene rgy consumptio n, ene generatmg, and consuming various typ es of energy based on hen sive conten ts of the rep ort use : Pro uicled, Tha t the com pre the enel u.ser's overall short-term anel long-term management sha 11 be spe cifie d by the DO E; pro �ram,_ w1th due consideration of factors inclueling costs, avmlab1hty, economics, anel environmental impact; the w ay of managing anel (k) Ene rgy effi ciency refe rs to consuroption resultmg 111 the restraining the gi·owth in ene rgy (r) Energy Service Company (ESCO) refers to a juridical sarn e energy inp ut or the sarn e delivery of mo re serv ices for the _ that offers multi-technology services and goods towards ent1ty serv ices for less ene rgy inp ut ; cleveloping and_ designing energy efficiency projects, delivering anel guaranteemg energy savings, and ensuring cost-effective nse rua. tio n Offi ce (EE CO) (1) Ene rgy Efficie ncy a.nd Co anel optimal pe1formance. Their services include energy supply hed in each LGU ma ndated xefe rs to the office to be establis anel m anagement, energy financing, technical engineering lem entation of their resp ective to oversee anel monitor the imp _ expert1se anel consultancy, equipment supply, installation Con serv atio n Pla n (LE E C_P) , Loc al Ene rgy Effi cien cy anel operation, maintenance anel up grade , and moni toring and nni ng anel dev elop me nt office; whi ch may be par t of the pla venficat10n of performance anel savings. Their goocls include seruatio n Offi cer (EEC hghtmg, motor � , drives, heating, ventilation, air conditioning (m) Ene rgy Effi cien cy anel Con systems, bmldmg envelope improvements, anel waste he at of the E E C O r e spo ns1 ble for Officer) refe rs to the hea d l recovery, cooling, heating, or other usable forros of energy n of the LEE CP at the loca ove rse ein g the imp lem ent atio exis ting control systems; design ated from the gov ern ment leve l, who may be per son nel of the LG U ; (s) Gouernment energy efficiency projects refer to energy _ . r to proj � cts des ign ed effic1ency proJects carrieel out by all government departments, (n) Ene rgy effi cien cy project s refe government-owned anel -controlled corporations (GOCCs), state anel cost by any 1mp roveme nt, s to reduce ene rgy consumption umvers1ties anel colleges, hospitals, anel othe1· instrumentalities of any buildin g or fac1hty, or rep air, alteration, or bet term ent of the government which have been evaluated anel endorsed ish ing to be aeld ed to or use d any equipm ent , fixture , or furn _ by the DOE for approval of the Inter-Agency Energy Effi.ciency or veh icle inc lu d rn g th e in any b uil di n g , fac ilit y , te d the ret o : anel Conservation Committee (IAEE CC) created under th.is Act; of ser vic es rela m anufactur ing anel pro vision ecti ve and shall ll b e cost -eff Pro vid ecl, That suc h proj ects sha 7 6 nt Prog ram (GEMP) (z) National Energy Efficiency and Conseruation Plan (t) Go vern men t Ene rgy Manageme p r o gra ro to re duc e the (NEECP) refers to the national comprehensive framework, refe 1·s to the g ove rnm ent - wid e of electri.city and petroleum governance structm·e, and programs for energy efficiency and government's roonthly consumption y and cons erva tion , _ and conservation with defined national targets, feasible strategies, products thro ugh electricity efficienc use of gove rnm ent veh1cles , and regular monitoring and evaluation: Prouided, That it shall efficiency and conservation in fuel be aligned with this Act and shall be a result of a collaborative amo ng others; and multi-stakeholder consultative process: Prouided, {tlrther, Con seru at;io n Pla n That it shall be regul arly reviewed and revised as determined (u) Loc al Ene rgy Effi cie ncy and ve and multi-st ake hold er by the DOE; (LEECP) refe rs to a coll abo rati ce structure, and progr ams comprehensive fram ework, governan a l ene 1: gy e ffic ie ncy and (aa) Philippine Qualifications Frameworh (PQF) refers to p r e p ar e d by the LGU for loc feas 1ble stra teg1es, and a national p olicy d e scribing the l e v e l s of e d ucational con serv atio n with define d targ ets, Pro uide d, Tha t it shall be qualifications and sets of standards for qualification outcomes. regular monitoring and evaluation: It is a quality assured national system for the development, ECP . alig ned with this Act and the NE recognition, and award of qualifications based on the standards G Us) T e fe r t o t h e of knowledge, skills, and values acquiJ:ed in clifferent ways and (v) L o c a l go u e rn m e n t u n i ts (L Rep ubh c Act N o . 7 1 �� ' methods by learners and workers. It is an assessment-based gov ernm ent units created thro ugh ern ment Code of 199 1 , qualification recognition which is competency-based and labor o ther wis e kno wn as the "Lo cal Gov market driven; P) refe rs to a (w) Min imu m Ene rgy Perform anc e (ME perform anc e standar d which pre scribes mm.ª 1mmn leve l of (bb) Transport uehicle refors to land, air, ar sea vehicles mer cial , md ust �·ial , a_nd conveying cargo or p asse ngers, regardless of size or weight ene rgy p e rfor man ce for the com pro duc ts mcl udm g classifica tion; sum ing transpor t sect ors, and ene rgy -con ipm ent , mac hm ery, and app lian ce s , lighting , electrical equ or exce e_ded befo re they (cc) Specific energy consurnption refers to the energy tran spor t veh icles tha t mus t be met for res1dential, com mer c1al , consumption volume re quired per unit, such as production can be offe red for sale or use d volume, sales amount, transportation kilometer, transportation ; tran spor t, and indu stri al pur p oses tonne-kilometer, floor space, and such other indicators relevant and C o n s e r u a t i, o n to energy consumption; and (.x) Nat io na l E n e rgy Efficie ncy rs to the person appomted Coo rdinating Offi cer (NEECCO) refe al Gov ern ment (dd) Transmiss1: on utility refers to any private corporation rior and Loc by the Dep artm ent of the Inte ue of LGU s from or government-owned utility which has an exclusive franchise of the leag (DILG) upo n the reco mm endation gove rnments, who to operate the system of wires for the conveyance of electricity rent loca l among all the EEC Officers of díffe LEE CPs ; throu gh a high voltage backbone line . ing all the sha ll be resp onsi ble for inte grat (y) Nal:ional Energy E(ficiency and Conseruatz:on D(l,tabase CHAPTER II (NEEC'D) refers to a centralized, comprehensive, and u mfie d database 011 national energy consumpt10n, the applicat10n and ROLES AND RESPONSIBILITIES OF AGENCIES use of energy efficient and renewable energy technolog1es, and other cri.ti.cal and relev ant information to be us e d for SEC. 5. lmp lementing Agency. - The DOE shall be the evaluation, analysis, and dissemination of data and informatlon lead agency in the implementation of this Act. It shall be related to energy efficiency and conservation; r e sp onsible for the planning, form ulation, develop m e nt, impleme ntatio n, e nforce rn e nt, and monitoring of energy 8 9 management policies and other related energy efficienc� and (i) Support LGUs on matters related to energy efficiency conservation plans and programs. ln addition to its ex1stmg planning and promotion, the preparation of their respective mandate, the DOE shall also have the following powers and LEECPs, and its implementation through various local energy functions: efficiency programs: Prouided, That the DOE shall provicle LGUs with templates for reports anel updates; (a) Spearhead the creation and update the development of the NEECP in coordination with pertinent government

(j) Coordinate with the NEECCO on the integrated agencies, LGUs, and private corporations and organizations; LEECP to ensure its consistency and alignment with the NEECP; (b) Develop a system of monitoring the implement ation _ of the NEECP, including the targets that are estabhshed

(k) Consult with energy end users to develop the therein; appropriate mechanism to effectively implement this Act: Provided, That such mechanism shall, as much as practicable, (e) Develop and maintain the NEECD, in coordination redound to the direct benefit of the energy end user; with and with the assistance of the Philippine Statistical Authority, to ensure efficient evaluation, analysis, and (1) Initiate and maintain collaborative efforts with the dissemination of data and infonnation for enforcement, business sector, particularly the commercial, industrial, planning, and policy-making pm·poses; transport, anel power sectors, to ensure compliance with this Act anel broaden and enhance their efficient and juelicious (d) Lead the efforts to ensme compliance with the GEMP utilization of energy; m accordance with the strategic direction provided by the IAEECC; (m) Develop anel undertake a national awareness and advocacy campaign on energy efficiency and conservation in (e) Develop, impose, and review the MEP in consultation partnership with business, academe, nongovernment with the Department of Trade and Industry � Bureau of organizations, and other sectors; Philippine Standards, and pursuant to Chapter V, Section 14 of this Act; (n) Provide annual reports to both Houses of Congress, inelicating, among others, the status of implementation of this (f) Require manufacturers, importers, and dealers to Act at the national and local levels, cost effectiveness outcomes, comply with the MEP, and to display on the packagmg and and energy and environmental impacts, among others; !I on their products the energy label showing the energy requircment and consumption efficiency of such products; (o) lmpose anel collect reasonable fees on accreditation anel certification for services provieleel herein; anel (g) Periodically review and reclassify designated establishments as defined under this Act and pursuant to its (p) Perform such other powers and functions as may implementing rules and regulations (IRR); be necessary to attain the objectives of this Act. (h) Enforce and ensure compliance with prescribed SEC. 6. Role of Other Gouernment Agencies. - All ratings standards for energy performance in buildings and government agencies including GOCCs shall ensure the industries, in coordination with pertinent government agenc1es efficient use of energy in their respective offices, facilities, and LGUs; transportation units, anel in the discharge of their functions. li 10 l n additio n , the fo llowin g a ge ncie s shall e x e rcise the (h) Dep artment of Environment and Natural Resources responsibilities and functions as enumerated hereunder: (DENR) - The DENR shall, in coordination with the DOE and the DILG, establish guidelines for the accmate characterization l include of wastes arising from energy-consuming devices, equipment, (a) Boar d of Inves tments (BOI) - The BOI shal fixtures, and other relevant items, incl.uding the end-of-life as defin ed in this Act, in the annual energy efficiency projects, vehicles and its component p arts: Pro uided, That such provided under investment priorities plan entitled to incentives guidelines shall includ'e appropriate containment features and the "Omnibus Executive Orde r No. 226, other wise know n as management of hazardous wastes, consistent with Repubhc Act and any other Inve stme nts Code of 1987" , as amen ded, No. 6969, otherwise known as the "Toxic Substances and applicable laws; Hazardous and Nuclear Wastes Control Act of 1990" ,· (b) Climate Change Commission (CCC) - The CCC shall collaborate with the DOE and other government agencies in (i) Dep artment of the Interior and Local Government establishing targets, determining strategies, and monitoring (DILG) - The DILG shall, in coordination with the D OE be and recording ali greenhouse gas emission reductions resulting r e s p o nsible in e n s uring c o m p l i a nce o f all L G Us' in from energy efficiency and conservation projects: Pro vided, implementing the provisions of this Act; That such targets and strategies ru:e aligned with the NEECP; (j) Dep artment of Public Works and Highways (DPWH) (c) C om mis sion on Audit (C OA) - The C OA shall The D PWH shall, in coordination w ith the D O E be recognize government energy efficiency projects, as defined responsible for ensuring the implementation of the Guidelines under this Act, as goods, services, and consultancy services, on Energy Conserving Design of BujJdings and Utility Systems consistent with government accounting and auditing rules; as an inte gral part of the National Building Code, Roadway Lighting Guidelines, and such other related guidelines as may (d) Commission on Higher Education (CHED) - The be issued by the DOE, and in accordance with Republic Act CHED shall inte grate into existing engineering curricula No. 654 1 , otherwise known as the "National Building Coele appropriate courses related to energy management. It s � all of the Philippines" and other related laws; _ also promote energy efficiency measures m h1gher e ducation institutions including state universities and colleges ; (k) Department of Science and Technology (DOST) - The DOST shall, in coordination with the D OE, be responsible for (e) Department of Budget and Management (DBM) - The carrying out strategic research and elevelopment programs DBM shall give due preference to funding government energy aimed at facilitating the development of new and alternative efficiency proj ects, as defmed under this Act, and incorporate energy efficient technologies and the promotion thereof; energy e fficie ncy as a factor in evaluating the annual performance of government agencies; (1) Department of Trade and Industry (DTl) - The DTI, through the B ure a u of Philipp ine Standards, shall, in DepEd shall consultation with the DOE, require manufacturers, importers, (f) Depa rtment of Education (Dep Ed) - The and de alers to comply with the MEP, and to display the pract ices in its prom ote ener gy efficiency and cons ervat ion energy label and the energy efficiency label showing the energy curricula; re quirement anel consumption efficiency of such products on OF shall , in the p ackaging anel on the products themselves; (g) Dep artm ent of Fina nce (DOF) - The D and other conce rned agen cies, draw coordination with the DOE tives (m) Department of Transportation (DOTr) - The DOTr anism s to imple ment the fiscal incen up appropriate mech shall, in coordination with the DOE and the D E NR, be under this Act; 13 12 responsible for e nsuring cornp liance o f ve hicle owners, implementati on of this Act in recognition of the potential of manufactmers, and importers with the MEP for transport energy efficiency as a tool for improving the competitiveness vehicles consistent with the specifications for ali types of fuels of businesses in the country; prescribed under Republic Act No. 8749, otherwise known as the "Philippine Clean Ail· Act of 1999" , and to display the (s) Philippine Statistics Authority (PSA) - The PSA energy consumption label in coordination with the vehicle shall, in coordination with the DOE, institutionalize the mamúacttll'ers, transport industry associations, public transport household energy consumption survey, the smvey of energy groups, and nongovernment organizations. The DOTr shall a1so consumption of establish ments, and other surveys relating to assist the DOE in the enforcement of and compliance with energy supply, demand, efficiency, and conservation, and assist measures under this Act and its IRR relative to the energy the DOE in the establish.ment of the NEECD as provided uncler consumption of the transport sector; this Act; and (n) Governance Commission for GOCCs (GCG) - The (t) Te chnical E d ucation a n d S k i l l s D eve lop m e n t GCG shall i ncorporate e ne rgy e fficiency as a factor in Authority (TESDA) - The TESDA shall, i n collaboration with evalu ating the performance of G O C C s ; the D O E , CHED, D OST, and other training and service institutions, develop training regulations for the certifications (o) Government Financial Institutions (GFls) - The GFis of energy m anagers and energy efficiency and conservation shall set aside lending funds for e nergy efficiency projects at officers. It shall ensure the promotion of energy efficiency conce ssiona! r a te s of intere s t to attract p rivate sector practices and renewable technologies through its Technical­ investm ents . The GFis shall , in collabor ation w ith the Vocational Education and Training Programs. The TESDA I nsurance Com mission, ensme the availability of compatible shal l implement skills training, assessment, and certification guarantee or insurance p roducts that would mitigate credit programs for mechanics, technicians, installers, and operators risks associated with energy efficiency investments in small of energy efficient, as well as renewable energy systems. and medium -sized enterprises and performance risks related to energy effi.ciency solutions developecl by ESCOs, engineering SEC. 7. Role of LGUs. - The LGUs shall establish their comp anies, an d other technology providers; respective EE COs headed by an EEC Officer as defined in Section 4(1) and (m) of this Act. The LGUs through their (p) Insurance Commission (I C) - The I C shall, in respective EECOs and planning and development offices, with collaboration with the G F l s , e nsure the availability of the assistance of the DOE and in coordination with the DILG compatible guarantee products that would mitigate the credit shall develop and implement their respective LEE CP and risks associated with e nergy efficiency investments in small incorporate these in their local development plans. and medium-sized enterprises and performance ri.sks related to the ene rgy e fficie ncy solu tions develo p e d by E SC O s, F u r th e r m ore , the LGUs s h a l l a s s .i s t the D O E r n engineering companies, and other technology provi.ders; m onitoring compliance with the obligations o f designated establishments under this Act for inp ut in the NEE CD. (q) National Economic and Development Authority (NEDA) - The NE DA shall recognize the role of e nergy S E C . 8. Role of Energy End Users. - All e nergy e n d efficiency and conservation in national developm ent; users shall use every ava.ilable energy resolU"ce efficiently and promote the development and utilization of new and alternative (r) National Comp etitiveness Council (N C C) or its energy efficient technologies and systems, .including renewable Successor Entity - The NCC or its Successor Entity shall serve energy technologies and systems across sectors in compliance as the focal point for private sector involvement in the with the declared policies of this Act. 14 15 (4) Energy conservation opportunities based on audits CHAPTER III technical analysis, or other methoels of determining such _ opportumties anel associated energy saving operations anel lNTER-AGENCY E1'.'ERGY EFFICIENCY AND maintenance procedures anel capital projects for each CONSERVATION COMMITTEE state-owned anel leased building or facility designated by the IAEECC; SEC. 9. Inter-Agency Energy Efficiency and Conseruation Comm,ittee. - An Inter-Agency Energy Efficiency and Conservation Coromittee (IAEECC) is hernby created to C"l?) Review all proposed capital projects and energy cost operatmg buelgets of agencies designated by the IAEECC and evaluate and approve government energy efficiency projects, as recommenel energy conservation measu.res which would reduce defined uneler this Act, and to provide strategic direction in operating costs in state-owned anel leased buildings or facilities; the implementation of the GEMP. (e) Provide any officer or entity of government, technical The IAEECC shall be composeel of the Secretaries of the and consulta�ive assistance concerni.ng energy cost management DOE, DBM, DOF, DTl, DOTr, DOST, DILG, and DPWH, and or conservat10n; the Director General of the NEDA. The DOE Secretary shall serve as the IAEEC Chaírperson. The Energy Utilization (d) Annually recommend specific operations and Management Bm·eau of the DOE shall serve as the IAEECC's maintenance proceelure moelifications anel capital projccts for Secretariat. state-owned anel leaseel buildings anel facilities designed to reduce cnergy consumption anel costs; SEC. 10. Powers and Fnnctions. - The IAEECC shall have the following powers anel functions (e) Coneluct surveys, audits, technical analysis, and other r��earch or investigations relateel to government energy (a) Prepare an amrnal assessment of opportunities for _ efhciency proJects and the GEMP as may be necessary to energy cost reduction in state-owneel and leaseel buildings anel su?port the preparation of the NEECP anel the objectives of facilities designated by thc IAEECC: Prouided, That each th1s Act; assessment shall be completeel each year: Provided, further, That the assessment shall be made available to the public: (f) Issue a report describing the status of government Providecl, finally, That the assessment shall include: energy efficiency projects anel the GEMP, listing obstacles to brnldmg energy efficiency improvernent together with related (1) Data for the preceding five (5) years on energy recomme n dations for statutory change, and identifying consumption anel costs ínclueling anticipateel energy _ _ opportumties for public sector energy cost reductions not consumption anel cost projecteel for the next th.ree (3) years addressed by this Act or the programs developed ptu·suant for each state-owneel anel leased btúlding anel facili.ty designateel hereto; and by the IAEECC; (g) Develop, after stuely of existing or emerging energy (2) Energy conservation meastu·es deployed in state-owneel conservat10n :-echnologíes, guidelines as may be necessary or anel leaseel buildings anel facilities elesignated by the IAEECC eles1rable to a1el the work of the IAEECC in fmtherance of the during the preceeling year; objectives of this Act. (3) Evaluation studies of the cost reeluctions anel other SEC. 11. Government. Energy Efficiency Projects. - benefi.ts realized thwugh the eleployment of eneTgy conservation Government agencies anel L ¾Us are authorized to enter into measures; anel different financial arrangements for energy efficiency projects 16 17 following the procedures laid down in any of the following the DOE and the TESDA, develop undergraduate, graduate, measures: Republic Act No. 9184, otherwise known as the and professional certificate programs on energy management "Government Procurement Reform Act"; Republic Act No. 6957, to ensure availability of competencies anel skills required to otherwise known as "An Act Authorizing the Financing, promote and achieve the country's sustainable energy goals. Construction, Operation and Maintenance of Infrastructure The CHED shall, in coordination with the DOE, develop Projects by the Private Sector, and For Other Purposes", as guidelines for this purpose. amended by Republic Act No. 7718; Republic Act No. 7160, otherwise known as the "Local Government Code of 1991"; the SEC. 13. Certification of Energy Service Company. - The 2013 NEDA Joint Venture Gtúdelines, as may be amendecl in DOE shall strengthen the existing ESCO certification system the future; the applicable LGU charter; related laws, rules, to develop this service sector and to provide the market with regulations; and other modalities. a somce of technically and financially capable entities that can assist in the delivery of energy efficiency-related projects. CHAPTERIV ESCOs applying for certification must elemonstrate their CERTIFICATION FOR PROFESSIONAL COMPETENCY AND technical anel managerial competence to design anel implement ACCREDITATION FOR PROFESSIONAL SERVICES energy efficiency projects, including: SEC. 12. Certifz:ed Energy Conseruation O/ficer and (a) Energy auelits; Certified Energy JJ1anager. - A system for the certification and assessment of energy conservation officers and energy (b) Design engineering; managers shall be established towards raising the professional standards of those engaged in energy management. (c) Providing or arranging project financing; The CECO certification system shall be developed by the (el) Construction management; DOE and the TESDA. It shall be based on an approved scope of practice, a set of competency standards with a clear (e) Operations and maintenance of energy efficient assessment and certi.fication process, and a certification for the technologies; anel determined competency undertaken by the prescribed governance structure and quality assurance systems anel (f) Verifying energy savings. aligned with the PQF and applicable international standards. Towards this end, the TESDA shall conduct training, CHAPTER V assessment, and certification of workers for PQF qualification Levels 1 to 5, and shall register Technícal-Vocational Education ENERGY PERFORMANCE STANDARDS AND and Training programs including that of nonprofit LABELING REQUIREMENTS organizations and other private training institutions. The TESDA shall, in coordination with the DOE, develop guidelines SEC. 14. Minimwn Energy Performance. - The MEP for this purpose. for the commercial, industrial, and transport sectors shall be eleveloped by the DOE, in consultation with relevant The CEM ce1·tification and assessment system for stakeholelers, anel guieleel by a cost-benefit analysis which shall registered engineers shall be established by the CHED. be completeel by the DOE with the assistance of the NEDA Towards this end, the CHED shall offer professional certificate within one (1) year from the effectivity of this Act: Pr ovided, programs for energy managers and shal.l, in coordination with That the aeloption anel enforcement of the MEP shall form part of the NEECP. 18 19 The ME P for e nergy-consuming products through a the calculati.on of the energy efficiency rating shall be contained particular product requirement under the PESLP shall also in the Code of Practice on Energy Labeling of Products or be developed by the D OE in co nsultation with relevant other relateel issuance, which shall be updateel regularly by stakeholders involvecl in the manufacturing, sale, and use of the DOE . the products covered . The DOE shall also develop the energy perform ance testing guidelines for all energy-consuming S E C . 1 6 . Ene rgy Pro d llct,, Device, and Eq n ip m e n t products to ensure compliance with the MEP. Exarn ination, Testing, and Verification. - The D O E shall regularly select energy-consuming proelucts anel their m odels Ali m anufacturers, importers, distributors, anel retailers for examination, testing, and verification. As such, the DOE of energy-consuming products shall comply with the MEP, may require any mamúacturer, importer, supplier, distributor, subject their energy-consuming products to energy performance or retailer of energy- consum i n g pro ducts , d evice s, a n d testing, anel submit their respective product inforrnation to the equipment t o make available , at such place a s the D OE may DOE . specify, such number of proclucts as the DOE considers to be reasonably necessary for examination and testing under th1s No manufacturer, importer, distributor, anel retailer shall section. sell, lease, or import any energy-consuming product, miless the proeluct complies with the MEP anel the product or its package The DOE is hereby authorized to dismantle and examine is labeled in accordance with this Act. the energy-consuming product, device, or equipment referred herein, to determine the proeluct's energy efficiency . These SEC. 1 5 . Energy Labeling for Prodncts and Eqnipment. products shall, upon completion of testing, be returneel by füe - The D O E s hall p r e s c r i b e e n e r gy l a b e l s fo r all D OE to the concerned m anufacturer, importer, suppher, e n e r gy - co n s u m in g p ro d ucts , d ev i c e s , anel e q ui p m e n t . distributor, or retaiJer, unless the DOE has reasonable grounds Manufacturers, importers, suppliers, distributors, anel retailers to believe that a provision of this Act was violate d and the engageel in selling such proelucts, devices, and equipment shall product will serve as evielence of the violation. ensure that such energy labels are displayed accordingly, anel sha11 provide information that shall assist consumers to make The D OE m a y , subj e ct to procurement laws a n el informed decisions on such products: P ro uided, That they shall regulations, procure the services o f o r enter into a n agreement ensure the integrity of the information submitted and made or other arrangement with a qualified supplier or entity to available to the pubhc: Prouided, fnrther, That the D OE shall carry out the examination anel testing of energy-consuming define the natlU'e anel scope of the üúormati on to be provideel. products. The DOE shall, in the engagement of a qualifie d supplier or entity to carry out the examination anel testing The DOE sh all also elevelop anel enforce a manelatory of e ne r gy - co n s u m ing prod ucts, follow the p rocess a n el energy efficiency rating anel labeling system for ielentifieel proce elures laid down i n Republic Act N o . 9 184, otherw1se energy-consuming proelucts, such as room air conelitioners, known as the "Government Procm·ement Reforra Act" anel its refrigeration units, anel television sets, to promote energy revised IRR except when the engagement involves a contractual efficient appliances anel raise public awareness on energy arrangement under a p ublic-private partnershi.p covered by saving. The energy efficiency label shall, at the minirnum , Republic Act N o . 6957, otherwise known as the "An Act reflect the energy efficiency rati.ng of the product, the monthly Authorizing the Financing, Construction, Op eration anel energy consumption based on a specified hour of el aily usage, Maintenance of Infrastructure Projects by the Private Sector, the branel name and product model, and the year the energy and For Other Purposes" , as amended by Republic Act No . rating was issued: Pro vided, That the calculation method of 77 1 8, or through a j oint venture agreement with private the energy efficiency rating shall be m ade available to the p ublic anel shall be upelated as often as necessary to ensure the inte grity of the labeling system: Pro vided, fiirther_, That 21 20 and facilities shall comply with the GEMP and such other entities under a profit sharing scheme under the 2013 NEDA guidelines issued by the IAEECC. Joint Ventme Guidelines, as may be amended in the future. CHAPTER VI SEC. 17. Fuel Economy Performance for Transport Vehicles. - To ensure fuel efficiency for transport, vehicle DESIGNATED ESTABLISHMENTS manufacturers, importers, and dealers shall comply with fuel economy performance labeling requirements set by the DOE SEC . 19. Designated Establishments. - Designated with the assistance of the DENR and the DOTr. The vehicle establishments shall initially be classified as follows: manufacturers, importers, and dealers shall provide technical information on the fuel economy rating of the engine that will (a) Type 1 designated establishments are those with an allow the consumers to make an informed decision in choosing annual energy consumption of 500,000 kilowatt-hours (kWh) the vehicles for their use. to 4,000,000 kWh for the previous year; and The DOE shall develop and conduct fuel efficiency testing (b) Type 2 designated establishments are those with an guidelines for the conduct of fuel efficiency tests to validate annual energy consumption of more than 4,000,000 kWh for the information provided by vehicle manufacturers, importers, the previous year. and dealers. The thresholds for determining Type 1 or Type 2 SEC. 18. Ene,gy Performance for Buildings. - To ensure designated establishments shall be periodically reviewed and appropriate and effective implementation of energy efficiency adjusted, if deemed necessary, by the DOE. and conservation for new and existing buildings for commercial and industrial use such as hospitals, educational facilities, SEC. 20. Obligations of Designated Establishments. - exhibition centers, government offices, and military facilities, The designated establishments shall have the following the LGUs shall implement th e following measures 111 obligations: accordance with building permit issuances: (a) Integrate an energy management system policy into (a) New building construction shall comply with the the business operation based on ISO 50001 or any similar minimum r equirements as specified in the Guidelines on framework; Energy Conserving Design on Buildings issued by the DOE, in consultation with th e DPWH, which may be revised to (b) Set up programs to develop and design measmes that r eflect new and emerging ener gy efficiency and conservation promote en ergy efficiency, conservation, and sufficien cy that technologies: Pro vided, That state-owned buildings and facilities may include ins tallation of renewable energy technologies; sh all comply with the GEMP and such other guidelines issued by the IAEECC; and (c) Set up annual targets, plans, a nd methods of measurements and verification for the implementation of (b) Retrofit of buildings shall also comply with the energy efficiency and conservation projects; minimum r equirements as specified in the Guidelines on Energy Conserving Design on Buildings issued by the DOE, (cl) Keep records on monthly energy consumption data in consultation with the DPWH, which may be revised to and other energy-related data; reflect new and emerging ener gy efficiency and conservation technologies: Provided, That state-owned and leased buildings (e) Improve average specific energy consumption in accordance with the annual reduction targets to be established by the DOE in the NEECP; 22 23 (f) Submit an annual ECCR to the DOE by the 15 th of to submit an annual energy consumption report to the DOE April of every year; and integrate an energy management system policy into thei.r business operations based on ISO 50001 or any similar (g) Conduct an energy audit once every three (3) years, framework on such other standard identified by the DOE: by engaging either a certified energy auditor or an accredited Prouided, That the thresholds indicated herein shall be ESCO anel submit an energy audit report to the DOE upon periodically reviewed and adjusted, if deemed necessary, by the completion of the energy audit; DOE. These establishments may, on a voluntary basis, submit themselves to external energy audit or quality control (h) Employ a CECO for Type 1 designated assessment to assist them in their energy planning and establishments, and a CEM for Type 2 designated management. establishments: Prouided, That the CECO and the CEM may be chosen from within the organization or hired through SEC. 23. Visitorial Powers and On-Site Inspections. external recruitment; and The DOE shall have the authority to visit designated establi.shments to inspect energy-consuming facilities, evaluate (i) Duly notify the DOE on the appointment or energy management systems and procedures, identify areas for separation from the service of their respective CECOs or CEMs efficiency improvement, and verify energy monitoring records within ten (10) working days from the effectivity of these and reports and other documents related to the compliance personnel action. requirements of this Act within office hours and in the presence of an authorized representative of the designated SEC. 21. Responsibilities of the CEGO and the CEM. - establishment. The CECO and the CEM, in their respective designated establishments, shall: CHAPTER VII (a) Manage the energy consumption of facilities, DEl\!lAND SIDE MANAGEMENT equipment, and devices; SEC. 24. Demand Side Management (DSM). - The DOE, (b) Administer the following: with the assistance of the Energy Regulatory Commission and the Pbilippine Economic Zone Authority, shall pursue a DSM (1) Implementation and improvement of energy efficiency program for the electric power industry for the reduction of measm·es; energy consumption through effective load management resulting to the decrease of power demand and the migration (2) Conduct of regular energy audit; of power demand from peak to off-peak periods or such measures undertaken by distribution utilities to encourage (3) Energy monitoring anel control; and end users to properly manage their loads to achieve efficiency in the utilization of fixed infrastructures in the systems. ( 4) Preparation of periodic energy consumption and energy conservation program reports; anel CHAPTER VIII (e) Fulfill other responsibilities as indicatecl in this Act. INCENTIVES SEC. 22. Other Establishments. - Establishments with SEC. 25. Fiscal Incentives. - Upon certification by the an annual energy consumption of at least 100,000 kWh but DOE, energy efficiency projects, as defined in this Act, shall less than 500,000 k\Vh in the previous year shall be required be included in the annual investment priorities plan of tbe 24 25 BOI and shall be entitled to the incentives provided uncler management measlll·es for hazardous wastes, consistent with Executive Order No. 226, otherwise known as the "Omnibus Republic Act No. 6969, otherwise known as the "Toxic Investments Code of 1987", as amended, anel any other Substance anel Hazardous anel Nuclear Wastes Control Act of applicable laws for ten (10) years from the effectivity of this 1990". Act: Prouided, That after the aforementioned period, the inclusion of energy efficiency projects in the annual investment A Waste Management Coilection, Recycling anel Disposal priorities plan shall be reviewed anel may be extended by the Strategy (WMCRDS) shall also be developed by the DOE, the BOI: Prouided, further, That energy efficiency projects shall DENR, and the DILG for wastes covereel by this Act to ensme be exempt from Article 32(1) of Executive Order No. 226. that these are managed anel disposeel properly to prevent impacts on the environment: Prouz:ded, That the WMCRDS SEC. 26. Non-Fiscal Incentives. - Establishments that shall incluele waste recovery anel recycling of components of will implement or are implementing energy efficiency projects <levices, equipment, fixtures, and other relevant items: shall be entitled to the following: Prouided, further, That the WMCRDS shall be submitted to the National Solid Waste Management Commission in (a) Provision of awards anel recognition for innovations accorelance with Republic Act No. 9003, otherwise known as m energy efficiency and conservation best practices, anel the "Ecological Soliel Waste Management Act of 2000" for successful energy efficiency projects anel energy efficient coordination with pertinent government agencies anel units for products; anel implementation. (b) Provision of technical assistance from government SEC. 29. Strengthening of the Energy Utilization agencies in the development anel promotion of energy efficient Management Bureau. - The Energy Utilization Management technologies. Bureau (EUMB) uneler the DOE is hereby reorganizeel as follows: SEC. 27. Finanáal Assistance. - GFis anel other financial institutions shall, in accordance with and to the (a) Alternative Fuels anel Energy Technology Division extent allowecl by the enabling provisions of their respective whose functions shall incluele: charters or applicable laws, provide concessiona! financial packages for the development, utilization, anel (1) Formulating policies, plans, and programs related to commercialization of renewable energy anel energy efficiency alternative fuels and new and advanced energy technologies' projects as duly recommended anel endorsed by the DOE. development towards socially anel environmentally responsive and effective utilization of energy resources; anel CHAPTERIX (2) Developing anel managing the alternati.ve fuels and MISCELLANEOUS PROVISIONS energy technology program; SEC. 28. Waste Manage,nent Collection, Recycling and (b) Energy Efficiency anel Conservation Program Disposal Gu.idelznes. - The DENR, in coordination with the Management and Technology Promotion Division whose DOE anel the DILG, will establish guidelines for the accmate functions shall incluele: characterization of wastes arising from energy-consuming <levices, equipment, fixtures, and other relevant items, including (1) Evaluating energy efficiency anel conservation end-of-life vehicles anel their component parts. These guidelines technologies; shall include appropriate containment features and 26 27 (2) Promoting the increaseel utilization of energy efficient receive aelditional plantilla positions to provi.de support service proelucts; to the EUMB in the discharge of its functions under this Act. (3) Preparing all reports for submission to other The Secretary of DOE shall submit the revised government agencies as requireel by law; anel organizational structure anel staffing complement of the reorganized EUMB which shall be effective upon the approval (4) Developing a comp1·ehensive information, education, of the Department of Budget anel Management. anel communication strategy for public awareness on energy efficiency programs anel energy efficient products; SEC. 30. Prohibited Acts. - The following acts are prohíbited: (e) Energy Efficiency anel Conservation Public Sector Management Division whose functions shall inclucle: (a) Failing to comply with energy labeling; (1) Coorelinating with the LGUs anel the NEECCO to (b) Removing, elefacing, or altering any energy label on ensure consistency with the NEECP; the energy-consuming product before the product is solel to the fil'st retail purchaser or leaseel to the first lessee; (2) Providing technical assistance to LGUs anel other government agencies; (c) Failing to provide accUl'ate ínformation or the provision of false or misleaeling energy information as required to be (3) Enhancing, expanding, anel eleveloping the GEMP; submitted under this Act; anel (d) Selling, leasing, or importing energy-consuming (4) Provieling technical snpport to the IAEECC anel products that do not comply with the MEP; acting as its Secretariat; (e) Failing or willfully refusing to appoint or designate (d) Energy Efficiency anel Conservation Performance a CECO or CEM; Regulation anel Enforcement Division whose functions shall include: (f) Willfully refusing to submit to an on-site inspection as indicateel ín Section 23 of this Act; (1) Spearheaeling the creation of the NEECD m accordance with the provisions of thi.s Act; (g) Failing or willfull y refusing to submit any of the re orts required herein; p (2) Formulating, developing, anel updating the MEP, energy labeling, anel other programs inelicated herein; anel (h) Failing to comply with issueel orders of the DOE in the discharge of its enforcement powers; and (3) Enforcing the programs under this Act anel its IRR, such as the MEP anel energy labeling. (i) Violating any provision of the IRR, codes, anel guidelines issued in accorelance with this Act. The Appliance Testing and Laboratory Division of the Energy Research anel Testing Laboratory Services, the Legal SEC. 31. Explanation, Recommendation, Dísclosure and Services uneler the General Legal Services Divisi.on, the Order. - Upon determination that a reasonable grounel exists Financial Services uneler the Accounting Division, anel each that an establishment has committed any of the prohibited fielel office under their respective Energy Resources acts under Section 30 of this Act, the DOE may consider the Development anel Utilization Divisions of the DOE shall hereby 29 28 or twice the amount of costs avoicled for noncornpliance, following measures prior to the imposition of the appropriate whichever is higher, or both, upon the discretion of the court. fines and penalties for such violations: Any person who willfully aids or abets the commission (a) Require an explanation supported by r eports, of the prohibited acts under Section 30 of this Act, or who returns, and other documents to rebut the alleged commission causes the cornmission of such acts by another, shall be liable of the prohibited act; in the sarne manner as the principal. (b) In cases w here an explanation has been issued but In cases of association, partnership or corporation, the the DOE finds a violation because of materially insufficient penalty shall be imposecl on the partner, president, chief reports, false returns, and nonsubmission of required operating officer, chief executive officer, director, or officer documents, provide a recommendation to the said responsible for the violation. establishment; CHAPTER X (c) Disclose the name of the establishment after it has received a recommendation and failed to comply with such FINAL PROVISIONS recommendation; and SEC. 34. Appropriations. - Such sums as may be (d) Issue an order in cases where the said establishment necessary for the successful implementation of this Act shall fails to follow or comply with the recommendation of the DOE: be taken from the current appropriations of the DOE. Provided, That failure on the part of the establishment to Thereafter, the amount needed for its continuous comply with the order shall be a valid ground for the implementation shall be included in the annual General imposition of fines and/or penalties in accordance with Section Appropriations Act. 32 of this Act. S.!W. 35. Implementing Rules a.nd Regulations (IRR). - SEC. 32. Fines and Penalties. - The DOE is empowered The DOE i,;hall, in consultation with concerned governrnent to impose fines and penalties for any violation of the provisions agencies and entities, LGUs, commercial, industrial, and of this Act, its IRR and other related issuances. The fines anel transport sectors, and other relevant stakeholders, promulgate penalties shall range from a minimum of Ten thousand pesos the IRR within six (6) months from the effectivity of this Act. (Pl0,000.00) to a maximum of One million pesos (Pl,000,000.00): Prouided, That this is without prejudice to SEC. 36. Codes of Guidehnes. � The DOE shall, in the penalties proviclecl for uncler existi.ng regulations prescribed accordance with the provisions of this Act, develop all codes by any other concerned goverrnnent agency: Provided, further, and guiclelines mentioned herein within six (6) months from That this is without prejuclice to criminal liability as stated the promulgation of this Act's IRR. 111 this Act. SEC. 37. Congressional Oversight. - Upon the effectivity SEC. 33. Crinúnal Liability. - The responsible officers of this Act, the Joint Congressional Power Commission created and employees of any establishment or organization who under Section 62 of Republic Act No. 9136, otherwise known williully cornmits any of tbe prolúbited acts under Section 30 as the "Electric Power Industry Reform Act of 2001" shall be of this Act shall, upon conviction, suffer the penalty of renamed to Joint Congressional Energy Commission and shall imprisonment of one (1) year to five (5) years, or a fine exerci.se oversight powers over the irnplementation of this Act. ranging from a minirnum of One hundred thousand pesos (Pl00,000.00) to One hundred million pesos (PI00,000,000.00) 30 SEC. 38. Sepambility Clanse. - If, for any reason, any section or provision of this Act is declared to be unconstitutional or invalid, such pa.rt not affected thereby shall remain in full force and effect. SEC. 39. Repealing Clanse. - All laws, presidential decrees, executive orders, issuances, rules, and regulations, inconsistent with the provisions of this Act ru:e hereby repealed or modified accordingly. SEC. 40. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation. F Approved, GLORIA MACAPAGAL-ARROYO Speaker of the House of Representatives This Act which is a consolidation of Senate Bill No. 1531 and House Bill No. 8629 ··was passed by the Sena te of the Philippines and the House of Representatives on January 30, 2019. � MYRA MARIE D. VILLARICA Secretary of the Sena te Ap p roved: rA.PR 1 2 2019 -­ /P11i1.vJA ROD�T60 ROA DUTERTE President of the Philippines � REPUBLIC OF THE PHILIPPINES PRRD 2016 - 010139 ( .e-; - • ,: •., •·1'·• ., -' ,.i..... .. ... 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