Abstract

Republic Act No. 11285, or commonly known as the Energy Efficiency and
Conservation Act, seeks to answer the need in the Philippines for sustainable
practices in energy. The enacted law establishes a comprehensive system that
promotes energy efficiency on all sectors of the economy, reduces energy
consumption and improves energy management, along with developing energy-
efficient technology. The Act requires formulating policies, programs, and strategies
that encourage energy conservation and promote the use of renewable energy
while reducing the emissions of greenhouse gases contributing to more
comprehensive national environmental and economic goals.
Introduction
Since demand for energy has increased coupled with the challenge to end the
problem of climate change, Republic Act No. 11285 or Energy Efficiency and
Conservation Act in the Philippines was signed on April 12, 2019. This law shall have
for its main purpose the development of a national program for energy efficiency
and conservation directed toward increasing energy use in industry, transportation,
public buildings, and in homes. RA 11285 highly supports the commitment of the
Philippines to sustainable development and energy security, focusing on reducing
energy waste, improving infrastructure, and creating a culture of energy
conservation. It seeks to improve the overall productivity and competitiveness of
the economy, being sensitive to environmental concerns through the legal and
institutional framework that is being established for energy efficiency. Abstract:
Republic Act No. 11285, or commonly known as the Energy Efficiency and
Conservation Act, seeks to answer the need in the Philippines for sustainable
practices in energy. The enacted law establishes a comprehensive system that
promotes energy efficiency on all sectors of the economy, reduces energy
consumption and improves energy management, along with developing energy-
efficient technology. The Act requires formulating policies, programs, and strategies
that encourage energy conservation and promote the use of renewable energy
while reducing the emissions of greenhouse gases contributing to more
comprehensive national environmental and economic goals. *Introduction:* Since
demand for energy has increased coupled with the challenge to end the problem of
climate change, Republic Act No. 11285 or Energy Efficiency and Conservation Act
in the Philippines was signed on April 12, 2019. This law shall have for its main
purpose the development of a national program for energy efficiency and
conservation directed toward increasing energy use in industry, transportation,
public buildings, and in homes. RA 11285 highly supports the commitment of the
Philippines to sustainable development and energy security, focusing on reducing
energy waste, improving infrastructure, and creating a culture of energy
conservation. It seeks to improve the overall productivity and competitiveness of
the economy, being sensitive to environmental concerns through the legal and
institutional framework that is being established for energy efficiency.
Section 1. Short Title. -This Act shall be known as the "Energy Efficiency and
Conservation Act".
Section 2. Declaration of Policy. -It is hereby declared the policy of the State to: (a)
Institutionalize energy efficiency and conservation as a national way of life geared
towards the efficient and judicious utilization of energy by formulating, developing,
and implementing energy efficiency and conservation plans and programs to secure
sufficiency and stability of energy supply in the country to cushion the impact of
high prices of imported fuels to local markets and protect the environment in
support of the economic and social development goals of the country; (b) Promote
and encourage the development and utilization of efficient renewable energy
technologies and systems to ensure optimal use and sustainability of the country’s
energy resources; (c) Reinforce related laws and other statutory provisions for a
comprehensive approach to energy efficiency, conservation, sufficiency, and
sustainability in the country; and (d) Ensure a market-driven approach to energy
efficiency, conservation, sufficiency, and sustainability in the country.
Section 3. Scope. -This Act shall establish a framework for introducing and
institutionalizing fundamental policies on energy efficiency and conservation,
including the promotion of efficient and judicious utilization of energy, increase in
the utilization of energy efficiency and renewable energy technologies, and the
delineation of responsibilities among various government agencies and private
entities.
Section 4. Definition of Terms. -For the purposes of this Act, the following terms shall
have the meanings below unless indicated otherwise: (a) Certified Energy
Conservation Officer (CECO) refers to a professional who obtains a certification as a
CECO after demonstrating high levels of experience, competence, proficiency, and
ethical fitness in the energy management profession, and who shall be responsible
for the supervision and maintenance of the facilities of Type 1 designated
establishments for the proper management of energy consumption and such other
functions deemed necessary for the efficient and judicious utilization of energy
under this Act; (b) Certified. Energy Manager (CEM) refers to a licensed engineer
who obtains a certification as a CEM after demonstrating high levels of experience,
competence, proficiency, and ethical fitness in the energy management profession,
and who shall be chosen by Type 2 designated establishments to plan, lead,
manage, coordinate, monitor, and evaluate the implementation of sustainable
energy management within their organizations; (c) Designated establishment refers
to a private or public entity in the commercial, industrial, transport, power,
agriculture, public works, and other sectors identified by the Department of Energy
(DOE) as energy intensive industries based on their annual energy consumption in
the previous year or an equivalent annual index; the amount of consumption is
indicated in this Act and subject to adjustment by the DOE as it deems necessary;
(d) Distribution utility refers to any electric cooperative, private corporation,
government-owned utility, or existing local government unit (LGU) which has an
exclusive franchise to operate a distribution system including those whose franchise
covers economic zones; (e) Department of Energy (DOE) refers to the agency
created through Republic Act No. 7638, otherwise known as the "Department of
Energy Act of 1992", and whose functions were expanded by Republic Act No.
9.136, otherwise known as the "Electric Power Industry Reform Act of 2001"; (f)
Energy refers to all types of energy available commercially including natural gas
(liquid natural gas and liquid oil gas), all heating and cooling fuels (including district
heating and district cooling), coal, transport fuels, and renewable energy sources;
(g) Energy audit refers to the evaluation of energy consumption and review of
current energy cost to determine appropriate intervention measures and efficiency
projects in which energy can be judiciously and efficiently used to achieve savings.
It may refer to a walk-through audit, a preliminary audit, or a detailed audit; (h)
Energy auditor refers to individuals or entities certified by the DOE who have proven
credibility and competence to conduct an energy audit: Provided, That the
guidelines in the certification of energy auditors shall be developed by the DOE
upon consultation with stakeholders; (i) Energy conservation refers to the reduction
of losses and wastage in various energy stages from energy production to energy
consumption through the adoption of appropriate measures that are technologically
feasible, economically sound, environmentally-friendly, and socially affordable; (j)
Energy Consumption and Conservation Report (ECCR) refers to the periodic report
submitted to the DOE by Type 1 and Type 2 designated establishments, distribution
utilities, and the transmission utility with regard to the National Energy Efficiency
and Conservation Plan containing, among others, energy consumption, energy loss,
and status of energy use: Provided, That the comprehensive contents of the report
shall be specified by the DOE; (k) Energy efficiency refers to the way of managing
and restraining the growth in energy consumption resulting in the delivery of more
services for the same energy input or the same services for less energy input; (l)
Energy Efficiency and. Conservation Office (EECO) refers to the office to be
established in each LGU mandated to oversee and monitor the implementation of
their respective Local Energy Efficiency and Conservation Plan (LEECP), which may
be part of the planning and development office; (m) Energy Efficiency and
Conservation Officer (EEC Officer) refers to the head of the EECO responsible for
overseeing the implementation of the LEECP at the local government level, who
may be designated from the existing personnel of the LGU; Energy efficiency
projects refer to projects designed to reduce energy consumption and costs by any
improvement, repair, alteration, or betterment of any building or facility, or any
equipment, fixture, or furnishing to be added to or used in any building, facility, or
vehicle including the manufacturing and provision of services related
thereto: Provided, That such projects shall be cost-effective and shall lead to lower
energy or utility costs during operation and maintenance; (o) Energy end user refers
to all individuals and entities which consume energy to include households,
industrial and commercial customers, power plants, distribution utilities, and
transmission utilities; (p) Energy labeling refers to the Philippine Energy Standards
and Labeling Program (PESLP) which requires manufacturers to attach an energy
label on their products to inform consumers about the energy performance and
efficiency of the product; (q) Energy management refers to the process of designing
and implementing an optimal program of purchasing, generating, and consuming
various types of energy based on the end user’s overall short-term and long-term
management program, with due consideration of factors including costs,
availability, economics, and environmental impact; (r) Energy Service Company
(ESCO) refers to a juridical entity that offers multi-technology services and goods
towards developing and designing energy efficiency projects, delivering and
guaranteeing energy savings, and ensuring cost-effective and optimal performance.
Their services include energy supply and management, energy financing, technical
engineering expertise and consultancy, equipment supply, installation, operation,
maintenance and upgrade, and monitoring and verification of performance and
savings.1âшphi1 Their goods include lighting, motors, drives, heating, ventilation,
air conditioning systems, building envelope improvements, and waste heat
recovery, cooling, heating, or other usable forms of energy control systems; (s)
Government energy efficiency projects refer to energy efficiency projects carried out
by all government departments, government-owned and -controlled corporations
(GOCCs), state universities and colleges, hospitals, and other instrumentalities of
the government which have been evaluated and endorsed by the DOE for approval
of the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) created
under this Act; (t) Government Energy Management Program (GEMP) refers to the
government-wide program to reduce the government’s monthly consumption of
electricity and petroleum products through electricity efficiency and conservation,
and efficiency and conservation in fuel use of government vehicles, among others;
(u) Local Energy Efficiency and Conservation Plan (LEECP) refers to a collaborative
and multi-stakeholder comprehensive framework, governance structure, and
programs prepared by the LGU for local energy efficiency and conservation with
defined targets, feasible strategies, and regular monitoring and
evaluation: Provided, That it shall be aligned with this Act and the NEE CP. (v) Local
government units (LGUs) refer to the government units created through Republic
Act No. 7160, otherwise known as the "Local Government Code of 1991"; (w)
Minimum Energy Performance (MEP) refers to a performance standard which
prescribes a minimum level of energy performance for the commercial, industrial,
and transport sectors, and energy-consuming products including appliances,
lighting, electrical equipment, machinery, and transport vehicles that must be met
or exceeded before they can be offered for sale or used for residential, commercial,
transport, and industrial purposes; (x) National Energy Efficiency and Conservation
Coordinating Officer (NEECCO) refers to the person appointed by the Department of
the Interior and Local Government (DILG) upon the recommendation of the league
of LGUs from among all the EEC Officers of different local governments, who shall be
responsible for integrating all the LEECPs; National Energy Efficiency and.
Conservation Database (NEECD) refers to a centralized, comprehensive, and unified
database on national energy consumption, the application and use of energy
efficient and renewable energy technologies, and other critical and relevant
information to be used for evaluation, analysis, and dissemination of data and
information related to energy efficiency and conservation; (z) National Energy
Efficiency and Conservation Plan (NEECP) refers to the national comprehensive
framework, governance structure, and programs for energy efficiency and
conservation with defined national targets, feasible strategies, and regular
monitoring and evaluation: Provided, That it shall be aligned with this Act and shall
be a result of a collaborative and multi-stakeholder consultative process: Provided,
further, That it shall be regularly reviewed and revised as determined by the DOE;
(aa) Philippine Qualifications Framework (PQF) refers to a national policy describing
the levels of educational qualifications and sets of standards for qualification
outcomes. It is a quality assured national system for the development, recognition,
and award of qualifications based on the standards of knowledge, skills, and values
acquired in different ways and methods by learners and workers. It is an
assessment-based qualification recognition which is competency-based and labor
market driven; (bb) Transport vehicle refers to land, air, or sea vehicles conveying
cargo or passengers, regardless of size or weight classification; (cc) Specific energy
consumption refers to the energy consumption volume required per unit, such as
production volume, sales amount, transportation kilometer, transportation tonne-
kilometer, floor space, and such other indicators relevant to energy consumption;
and (dd) Transmission utility refers to any private corporation or government-owned
utility which has an exclusive franchise to operate the system of wires for the
conveyance of electricity through a high voltage backbone line. CHAPTER II ROLES
AND RESPONSIBILITIES OF AGENCIES
Section 5. Implementing Agency.— The DOE shall be the lead agency in the
implementation of this Act. It shall be responsible for the planning, formulation,
development, implementation, enforcement, and monitoring of energy
management policies and other related energy efficiency and conservation plans
and programs. In addition to its existing mandate, the DOE shall also have the
following powers and functions: (a) Spearhead the creation and update the
development of the NEECP in coordination with pertinent government agencies,
LGUs, and private corporations and organizations; (b) Develop a system of
monitoring the implementation of the NEECP, including the targets that are
established therein; (c) Develop and maintain the NEECP, in coordination with and
with the assistance of the Philippine Statistical Authority, to ensure efficient
evaluation, analysis, and dissemination of data and information for enforcement,
planning, and policy-making purposes; (d) Lead the efforts to ensure compliance
with the GEMP in accordance with the strategic direction provided by the IAEECC;
(e) Develop, impose, and review the MEP in consultation with the Department of
Trade and Industry – Bureau of Philippine Standards, and pursuant to Chapter V,
Section 14 of this Act; (f) Require manufacturers, importers, and dealers to comply
with the MEP, and to display on the packaging and on their products the energy
label showing the energy requirement and consumption efficiency of such products;
(g) Periodically review and reclassify designated establishments as defined under
this Act and pursuant to its implementing rules and regulations (IRR); (h) Enforce
and ensure compliance with prescribed ratings standards for energy performance in
buildings and industries, in coordination with pertinent government agencies and
LGUs; (i) Support LGUs on matters related to energy efficiency planning and
promotion, the preparation of their respective LEECPs, and its implementation
through various local energy efficiency programs: Provided, That the DOE shall
provide LGUs with templates for reports and updates; (j) Coordinate with the
NEECCO on the integrated LEECP to ensure its consistency and alignment with the
NEECP; (k) Consult with energy end users to develop the appropriate mechanism to
effectively implement this Act: Provided, That such mechanism shall, as much as
practicable, redound to the direct benefit of the energy end user; (l) Initiate and
maintain collaborative efforts with the business sector, particularly the commercial,
industrial, transport, and power sectors, to ensure compliance with this Act and
broaden and enhance their efficient and judicious utilization of energy; (m) Develop
and undertake a national awareness and advocacy campaign on energy efficiency
and conservation in partnership with business, academe, nongovernment
organizations, and other sectors; Provide annual reports to both Houses of
Congress, indicating, among others, the status of implementation of this Act at the
national and local levels, cost effectiveness outcomes, and energy and
environmental impacts, among others; (o) Impose and collect reasonable fees on
accreditation and certification for services provided herein; and (p) Perform such
other powers and functions as may be necessary to attain the objectives of this Act.
Section 6. Role of Other Government Agencies.— All government agencies
including GOCCs shall ensure the efficient use of energy in their respective offices,
facilities, transportation units, and in the discharge of their functions. In addition,
the following agencies shall exercise the responsibilities and functions as
enumerated hereunder: (a) Board of Investments (BOI) – The BOI shall include
energy efficiency projects, as defined in this Act, in the annual investment priorities
plan entitled to incentives provided under Executive Order No. 226, otherwise
known as the "Omnibus Investments Code of 1987", as amended, and any other
applicable laws; (b) Climate Change Commission (CCC) – The CCC shall collaborate
with the DOE and other government agencies in establishing targets, determining
strategies, and monitoring and recording all greenhouse gas emission reductions
resulting from energy efficiency and conservation projects: Provided, That such
targets and strategies are aligned with the NEECP; (c) Commission on Audit (COA) –
The COA shall recognize government energy efficiency projects, as defined under
this Act, as goods, services, and consultancy services, consistent with government
accounting and auditing rules; (d) Commission on Higher Education (CHED) – The
CHED shall integrate into existing engineering curricula appropriate courses related
to energy management. It shall also promote energy efficiency measures in higher
education institutions including state universities and colleges; (e) Department of
Budget and Management (DBM) – The DBM shall give due preference to funding
government energy efficiency projects, as defined under this Act, and incorporate
energy efficiency as a factor in evaluating the annual performance of government
agencies; (f) Department of Education (DepEd) – The DepEd shall promote energy
efficiency and conservation practices in its curricula; (g) Department of Finance
(DOF) – The DOF shall, in coordination with the DOE and other concerned agencies,
draw up appropriate mechanisms to implement the fiscal incentives under this Act;
(h) Department of Environment and Natural Resources (DENR) – The DENR shall, in
coordination with the DOE and the DILG, establish guidelines for the accurate
characterization of wastes arising from energy-consuming devices, equipment,
fixtures, and other relevant items, including the end-of-life vehicles and its
component parts: Provided, That such guidelines shall include appropriate
containment features and management of hazardous wastes, consistent with
Republic Act No. 6969, otherwise known as the "Toxic Substances and Hazardous
and Nuclear Wastes Control Act of 1990"; (i) Department of the Interior and Local
Government (DILG) – The DILG shall, in coordination with the DOE, be responsible in
ensuring compliance of all LGUs in implementing the provisions of this Act;
(j) Department of Public Works and Highways (DPWH) – The DPWH shall, in
coordination with the DOE, be responsible for ensuring the implementation of the
Guidelines on Energy Conserving Design of Buildings and Utility Systems as an
integral part of the National Building Code, Roadway Lighting Guidelines, and such
other related guidelines as may be issued by the DOE, and in accordance with
Republic Act No. 6541, otherwise known as the "National Building Code of the
Philippines" and other related laws; (k) Department of Science and Technology
(DOST) – The DOST shall, in coordination with the DOE, be responsible for carrying
out strategic research and development programs aimed at facilitating the
development of new and alternative energy efficient technologies and the
promotion thereof; (l) Department of Trade and Industry (DTI) – The DTI, through the
Bureau of Philippine Standards, shall, in consultation with the DOE, require
manufacturers, importers, and dealers to comply with the MEP, and to display the
energy label and the energy efficiency label showing the energy requirement and
consumption efficiency of such products on the packaging and on the products
themselves; (m) Department of Transportation (DOTr) – The DOTr shall, in
coordination with the DOE and the DENR, be responsible for ensuring compliance of
vehicle owners, manufacturers, and importers with the MEP for transport vehicles
consistent with the specifications for all types of fuels prescribed under Republic Act
No. 8749, otherwise known as the "Philippine Clean Air Act of 1999", and to display
the energy consumption label in coordination with the vehicle manufacturers,
transport industry associations, public transport groups, and nongovernment
organizations. The DOTr shall also assist the DOE in the enforcement of and
compliance with measures under this Act and its IRR relative to the energy
consumption of the transport sector; Governance Commission for GOCCs (GCG) –
The GCG shall incorporate energy efficiency as a factor in evaluating the
performance of GOCCs; (o) Government Financial Institutions (GFIs) – The GFIs shall
set aside lending funds for energy efficiency projects at concessional rates of
interest to attract private sector investments. The GFIs shall, in collaboration with
the Insurance Commission, ensure the availability of compatible guarantee or
insurance products that would mitigate credit risks associated with energy
efficiency investments in small and medium-sized enterprises and performance
risks related to energy efficiency solutions developed by ESCOs, engineering
companies, and other technology providers; (p) Insurance Commission (IC) – The IC
shall, in collaboration with the GFIs, ensure the availability of compatible guarantee
products that would mitigate the credit risks associated with energy efficiency
investments in small and medium-sized enterprises and performance risks related
to the energy efficiency solutions developed by ESCOs, engineering companies, and
other technology providers; (q) National Economic and Development Authority
(NEDA) – The NEDA shall recognize the role of energy efficiency and conservation in
national development; (r) National Competitiveness Council (NCC) or its Successor
Entity – The NCC or its Successor Entity shall serve as the focal point for private
sector involvement in the implementation of this Act in recognition of the potential
of energy efficiency as a tool for improving the competitiveness of businesses in the
country; (s) Philippine Statistics Authority (PSA) – The PSA shall, in coordination with
the DOE, institutionalize the household energy consumption survey, the survey of
energy consumption of establishments, and other surveys relating to energy supply,
demand, efficiency, and conservation, and assist the DOE in the establishment of
the NEECD as provided under this Act; and (t) Technical Education and Skills
Development Authority (TESDA) – The TESDA shall, in collaboration with the DOE,
CHED, DOST, and other training and service institutions, develop training
regulations for the certifications of energy managers and energy efficiency and
conservation officers. It shall ensure the promotion of energy efficiency practices
and renewable technologies through its Technical-Vocational Education and Training
Programs. The TESDA shall implement skills training, assessment, and certification
programs for mechanics, technicians, installers, and operators of energy efficient,
as well as renewable energy systems.
Section 7. Role of LGUs. -The LGUs shall establish their respective EECOs headed by
an EEC Officer as defined in Section 4(1) and (m) of this Act. The LGUs through their
respective EECOs and planning and development offices, with the assistance of the
DOE and in coordination with the DILG, shall develop and implement their
respective LEE CP and incorporate these in their local development plans.
Furthermore, the LGUs shall assist the DOE in monitoring compliance with the
obligations of designated establishments under this Act for input in the NEECD.
Section 8. Role of Energy End Users. -All energy end users shall use every available
energy resource efficiently and promote the development and utilization of new and
alternative energy efficient technologies and systems, including renewable energy
technologies and systems across sectors in compliance with the declared policies of
this Act. CHAPTER III INTER-AGENCY ENERGY EFFICIENCY AND CONSERVATION
COMMITTEE
Section 9. Inter-Agency Energy Efficiency and Conservation Committee. -An Inter-
Agency Energy Efficiency and Conservation Committee (IAEECC) is hereby created
to evaluate and approve government energy efficiency projects, as defined under
this Act, and to provide strategic direction in the implementation of the GEMP. The
IAEECC shall be composed of the Secretaries of the DOE, DBM, DOF, DTI, DOTr,
DOST, DILG, and DPWH, and the Director General of the NED A. The DOE Secretary
shall serve as the IAEECC Chairperson. The Energy Utilization Management Bureau
of the DOE shall serve as the IAEECC’s Secretariat.
Section 10. Powers and Functions. -The IAEECC shall have the following powers and
functions : (a) Prepare an annual assessment of opportunities for energy cost
reduction in state-owned and leased buildings and facilities designated by the
IAEECC: Provided, That each assessment shall be completed each year: Provided,
further, That the assessment shall be made available to the public: Provided,
finally, That the assessment shall include: (1) Data for the preceding five (5) years
on energy consumption and costs including anticipated energy consumption and
cost projected for the next three (3) years for each state-owned and leased building
and facility designated by the IAEECC; (2) Energy conservation measures deployed
in state-owned and leased buildings and facilities designated by the IAEECC during
the preceding year; (3) Evaluation studies of the cost reductions and other benefits
realized through the deployment of energy conservation measures; and (4) Energy
conservation opportunities based on audits, technical analysis, or other methods of
determining such opportunities and associated energy saving operations and
maintenance procedures and capital projects for each state-owned and leased
building or facility designated by the 1AEECC; (b) Review all proposed capital
projects and energy cost operating budgets of agencies designated by the IAEECC
and recommend energy conservation measures which would reduce operating costs
in state-owned and leased buildings or facilities; (c) Provide any officer or entity of
government, technical and consultative assistance concerning energy cost
management or conservation; (d) Annually recommend specific operations and
maintenance procedure modifications and capital projects for state-owned and
leased buildings and facilities designed to reduce energy consumption and costs; (e)
Conduct surveys, audits, technical analysis, and other research or investigations
related to government energy efficiency projects and the GEMP as may be
necessary to support the preparation of the NEECP and the objectives of this Act; (f)
Issue a report describing the status of government energy efficiency projects and
the GEMP, listing obstacles to building energy efficiency improvement together with
related recommendations for statutory change, and identifying opportunities for
public sector energy cost reductions not addressed by this Act or the programs
developed pursuant hereto; and (g) Develop, after study of existing or emerging
energy conservation technologies, guidelines as may be necessary or desirable to
aid the work of the IAEECC in furtherance of the objectives of this Act.
Section 11. Government Energy Efficiency Projects. -Government agencies and
LGUs are authorized to enter into different financial arrangements for energy
efficiency projects following the procedures laid down in any of the following
measures: Republic Act No. 9184, otherwise known as the "Government
Procurement Reform Act"; Republic Act No. 6957, otherwise known as "An Act
Authorizing the Financing, Construction, Operation and Maintenance of
Infrastructure Projects by the Private Sector, and For Other Purposes", as amended
by Republic Act No. 7718; Republic Act No. 7160, otherwise known as the "Local
Government Code of 1991"; the 2013 NEDA Joint Venture Guidelines, as may be
amended in the future; the applicable LGU charter; related laws, rules, regulations;
and other modalities. CHAPTER IV CERTIFICATION FOR PROFESSIONAL COMPETENCY
AND ACCREDITATION FOR PROFESSIONAL SERVICES
Section 12. Certified Energy Conservation Officer and Certified Energy Manager. -A
system for the certification and assessment of energy conservation officers and
energy managers shall be established towards raising the professional standards of
those engaged in energy management. The CECO certification system shall be
developed by the DOE and the TESDA. It shall be based on an approved scope of
practice, a set of competency standards with a clear assessment and certification
process, and a certification for the determined competency undertaken by the
prescribed governance structure and quality assurance systems and aligned with
the PQF and applicable international standards. Towards this end, the TESDA shall
conduct training, assessment, and certification of workers for PQF qualification
Levels 1 to 5, and shall register Technical-Vocational Education and Training
programs including that of nonprofit organizations and other private training
institutions. The TESDA shall, in coordination with the DOE, develop guidelines for
this purpose. The CEM certification and assessment system for registered engineers
shall be established by the CHED. Towards this end, the CHED shall offer
professional certificate programs for energy managers and shall, in coordination
with the DOE and the TESDA, develop undergraduate, graduate, and professional
certificate programs on energy management to ensure availability of competencies
and skills required to promote and achieve the country’s sustainable energy goals.
The CHED shall, in coordination with the DOE, develop guidelines for this purpose.
Section 13. Certification of Energy Service Company. -The DOE shall strengthen the
existing ESCO certification system to develop this service sector and to provide the
market with a source of technically and financially capable entities that can assist in
the delivery of energy efficiency-related projects. ESCOs applying for certification
must demonstrate their technical and managerial competence to design and
implement energy efficiency projects, including: (a) Energy audits; (b) Design
engineering; (c) Providing or arranging project financing; (d) Construction
management; (e) Operations and maintenance of energy efficient technologies; and
(f) Verifying energy savings. CHAPTER V ENERGY PERFORMANCE STANDARDS AND
LABELING REQUIREMENTS
Section 14. Minimum Energy Performance. -The MEP for the commercial, industrial,
and transport sectors shall be developed by the DOE, in consultation with relevant
stakeholders, and guided by a cost-benefit analysis which shall be completed by the
DOE with the assistance of the NEDA within one (1) year from the effectivity of this
Act: Provided, That the adoption and enforcement of the MEP shall form part of the
NEECP. The MEP for energy-consuming products through a particular product
requirement under the PESLP shall also be developed by the DOE in consultation
with relevant stakeholders involved in the manufacturing, sale, and use of the
products covered. The DOE shall also develop the energy performance testing
guidelines for all energy-consuming products to ensure compliance with the MEP. All
manufacturers, importers, distributors, and retailers of energy-consuming products
shall comply with the MEP, subject their energy-consuming products to energy
performance testing, and submit them respective product information to the DOE.
No manufacturer, importer, distributor, and retailer shall sell, lease, or import any
energy-consuming product, unless the product complies with the MEP and the
product or its package is labeled in accordance with this Act.
Section 15. Energy Labeling for Products and. Equipment. -The DOE shall prescribe
energy labels for all energy-consuming products, devices, and equipment.
Manufacturers, importers, suppliers, distributors, and retailers engaged in selling
such products, devices, and equipment shall ensure that such energy labels are
displayed accordingly, and shall provide information that shall assist consumers to
make informed decisions on such products: Provided, That they shall ensure the
integrity of the information submitted and made available to the public: Provided,
further, That the DOE shall define the nature and scope of the information to be
provided. The DOE shall also develop and enforce a mandatory energy efficiency
rating and labeling system for identified energy-consuming products, such as room
air conditioners, refrigeration units, and television sets, to promote energy efficient
appliances and raise public awareness on energy saving. The energy efficiency label
shall, at the minimum, reflect the energy efficiency rating of the product, the
monthly energy consumption based on a specified hour of daily usage, the brand
name and product model, and the year the energy rating was issued: Provided, That
the calculation method of the energy efficiency rating shall be made available to the
public and shall be updated as often as necessary to ensure the integrity of the
labeling system: Provided, further, That the calculation of the energy efficiency
rating shall be contained in the Code of Practice on Energy Labeling of Products or
other related issuance, which shall be updated regularly by the DOE.
Section 16. Energy Product, Device, and Equipment Examination, Testing, and
Verification. -The DOE shall regularly select energy-consuming products and their
models for examination, testing, and verification. As such, the DOE may require any
manufacturer, importer, supplier, distributor, or retailer of energy-consuming
products, devices, and equipment to make available, at such place as the DOE may
specify, such number of products as the DOE considers to be reasonably necessary
for examination and testing under this section. The DOE is hereby authorized to
dismantle and examine the energy-consuming product, device, or equipment
referred herein, to determine the product’s energy efficiency. These products shall,
upon completion of testing, be returned by the DOE to the concerned manufacturer,
importer, supplier, distributor, or retailer, unless the DOE has reasonable grounds to
believe that a provision of this Act was violated and the product will serve as
evidence of the violation. The DOE may, subject to procurement laws and
regulations, procure the services of or enter into an agreement or other
arrangement with a qualified supplier or entity to carry out the examination and
testing of energy-consuming products. The DOE shall, in the engagement of a
qualified supplier or entity to carry out the examination and testing of energy-
consuming products, follow the process and procedures laid down in Republic Act
No. 9184, otherwise known as the "Government Procurement Reform Act" and its
revised IRR except when the engagement involves a contractual arrangement under
a public-private partnership covered by Republic Act No. 6957, otherwise known as
the "An Act Authorizing the Financing, Construction, Operation and Maintenance of
Infrastructure Projects by the Private Sector, and For Other Purposes", as amended
by Republic Act No. 7718, or through a joint venture agreement with private entities
under a profit sharing scheme under the 2013 NEDA Joint Venture Guidelines, as
may be amended in the future.
Section 17. Fuel Economy Performance for Transport Vehicles. -To ensure fuel
efficiency for transport, vehicle manufacturers, importers, and dealers shall comply
with fuel economy7 performance labeling requirements set by the DOE with the
assistance of the DENR and the DOTr. The vehicle manufacturers, importers, and
dealers shall provide technical information on the fuel economy rating of the engine
that, will allow the consumers to make an informed decision in choosing the
vehicles for their use. The DOE shah develop and conduct fuel efficiency testing
guidelines for the conduct of fuel efficiency tests to validate the information
provided by vehicle manufacturers, importers, and dealers.
Section 18. Energy Performance for Buildings. -To ensure appropriate and effective
implementation of energy efficiency and conservation for new and existing buildings
for commercial and industrial use such as hospitals, educational facilities, exhibition
centers, government offices, and military facilities, the LGUs shall implement the
following measures in accordance with building permit issuances: (a) New building
construction shall comply with the minimum requirements as specified in the
Guidelines on Energy Conserving Design on Buildings issued by the DOE, in
consultation with the DPWH, which may be revised to reflect new and emerging
energy efficiency and conservation technologies: Provided, That state-owned
buildings and facilities shall comply with the GEMP and such other guidelines issued
by the IAEECC; and (b) Retrofit of buildings shall also comply with the minimum
requirements as specified in the Guidelines on Energy Conserving Design on
Buildings issued by the DOE, in consultation with the DPWH, which may be revised
to reflect new and emerging energy efficiency and conservation
technologies: Provided, That state-owned and leased buildings and facilities shall
comply with the GEMP and such other guidelines issued by the IAEECC. CHAPTER VI
DESIGNATED ESTABLISHMENTS
Section 19. Designated Establishments. -Designated establishments shall initially
be classified as follows: (a) Type 1 designated establishments are those with an
annual energy consumption of 500,000 kilowatt-hours (kWh) to 4,000,000 kWh for
the previous year; and (b) Type 2 designated establishments are those with an
annual energy consumption of more than 4,000,000 kWh for the previous year. The
thresholds for determining Type 1 or Type 2 designated establishments shall be
periodically reviewed and adjusted, if deemed necessary, by the DOE.
Section 20. Obligations of Designated Establishments. -The designated
establishments shall have the following obligations: (a) Integrate an energy
management system policy into the business operation based on ISO 50001 or any
similar framework; (b) Set up programs to develop and design measures that
promote energy efficiency, conservation, and sufficiency that may include
installation of renewable energy technologies; (c) Set up annual targets, plans, and
methods of measurements and verification for the implementation of energy
efficiency and conservation projects; (d) Keep records on monthly energy
consumption data and other energy-related data; (e) Improve average specific
energy consumption in accordance with the annual reduction targets to be
established by the DOE in the NEECP; (f) Submit an annual ECCR to the DOE by the
15th of April of every year; (g) Conduct an energy audit once every three (3) years,
by engaging either a certified energy auditor or an accredited ESCO and submit an
energy audit report to the DOE upon completion of the energy audit; (h) Employ a
CECO for Type 1 designated establishments, and a CEM for Type 2 designated
establishments: Provided, That the CECO and the CEM may be chosen from within
the organization or hired through external recruitment; and (i) Duly notify the DOE
on the appointment or separation from the service of them respective CECOs or
CEMs within ten (10) working days from the effectivity of these personnel action.
Section 21. Responsibilities of the CECO and the CEM. -The CECO and the CEM, in
their respective designated establishments, shall: (a) Manage the energy
consumption of facilities, equipment, and devices; (b) Administer the following: (1)
Implementation and improvement of energy efficiency measures; (2) Conduct of
regular energy audit; (3) Energy monitoring and control; and (4) Preparation of
periodic energy consumption and energy conservation program reports; and (c)
Fulfill other responsibilities as indicated in this Act.
Section 22. Other Establishments. -Establishments with an annual energy
consumption of at least 100,000 kWh but less than 500,000 kWh in the previous
year shall be required to submit an annual energy consumption report to the DOE
and integrate an energy management system policy into then-business operations
based on ISO 50001 or any similar framework on such other standard identified by
the DOE: Provided, That the thresholds indicated herein shall be periodically
reviewed and adjusted, if deemed necessary, by the DOE. These establishments
may, on a voluntary basis, submit themselves to external energy audit or quality
control assessment to assist them in their energy planning and management.
Section 23. Visitorial Powers and On-Site Inspections. -The DOE shall have the
authority to visit designated establishments to inspect energy-consuming facilities,
evaluate energy management systems and procedures, identify areas for efficiency
improvement, and verify energy monitoring records and reports and other
documents related to the compliance requirements of this Act within office hours
and in the presence of an authorized representative of the designated
establishment. CHAPTER VII DEMAND SIDE MANAGEMENT
Section 24. Demand Side Management (DSM). -The DOE, with the assistance of the
Energy Regulatory Commission and the Philippine Economic Zone Authority, shall
pursue a DSM program for the electric power industry for the reduction of energy
consumption through effective load management resulting to the decrease of power
demand and the migration of power demand from peak to off-peak periods or such
measures undertaken by distribution utilities to encourage end users to properly
manage their loads to achieve efficiency in the utilization of fixed infrastructures in
the systems. CHAPTER VIII INCENTIVES
Section 25. Fiscal Incentives. -Upon certification by the DOE, energy efficiency
projects, as defined in this Act, shall be included in the annual investment priorities
plan of the BOI and shall be entitled to the incentives provided under Executive
Order No. 226, otherwise known as the "Omnibus Investments Code of 1987", as
amended, and any other applicable laws for ten (10) years from the effectivity of
this Act: Provided, That after the aforementioned period, the inclusion of energy
efficiency projects in the annual investment priorities plan shall be reviewed and
may be extended by the BOI: Provided, further, That energy efficiency projects shall
be exempt from Article 32(1) of Executive Order No. 226.
Section 26. Non-Fiscal Incentives. -Establishments that will implement or are
implementing energy efficiency projects shall be entitled to the following: (a)
Provision of awards and recognition for innovations in energy efficiency and
conservation best practices, and successful energy efficiency projects and energy
efficient products; and (b) Provision of technical assistance from government
agencies in the development and promotion of energy efficient technologies.
Section 27. Financial Assistance. -GFIs and other financial institutions shall, in
accordance with and to the extent allowed by the enabling provisions of their
respective charters or applicable laws, provide concessional financial packages for
the development, utilization, and commercialization of renewable energy and
energy efficiency projects as duly recommended and endorsed by the DOE.
CHAPTER IX MISCELLANEOUS PROVISIONS
Section 28. Waste Management Collection, Recycling and Disposal Guidelines. -The
DENR, in coordination with the DOE and the DILG, will establish guidelines for the
accurate characterization of wastes arising from energy-consuming devices,
equipment, fixtures, and other relevant items, including end-of-life vehicles and
their component parts. These guidelines shall include appropriate containment
features and management measures for hazardous wastes, consistent with Republic
Act No. 6969, otherwise known as the "Toxic Substance and Hazardous and Nuclear
Wastes Control Act of 1990". A Waste Management Collection, Recycling and
Disposal Strategy (WMCRDS) shall also be developed by the DOE, the DENR, and
the DILG for wastes covered by this Act to ensure that these are managed and
disposed properly to prevent impacts on the environment: Provided, That the
WMCRDS shall include waste recovery and recycling of components of devices,
equipment, fixtures, and other relevant items: Provided, further, That the WMCRDS
shall be submitted to the National Solid Waste Management Commission in
accordance with Republic Act No. 9003, otherwise known as the "Ecological Solid
Waste Management Act of 2000" for coordination with pertinent government
agencies and units for implementation.
Section 29. Strengthening of the Energy Utilization Management Bureau. -The
Energy Utilization Management Bureau (EUMB) under the DOE is hereby reorganized
as follows: (a) Alternative Fuels and Energy Technology Division whose functions
shall include: (1) Formulating policies, plans, and programs related to alternative
fuels and new and advanced energy technologies’ development towards socially
and environmentally responsive and effective utilization of energy resources; and
(2) Developing and managing the alternative fuels and energy technology program;
(b) Energy Efficiency and Conservation Program Management and Technology
Promotion Division whose functions shall include: (1) Evaluating energy efficiency
and conservation technologies; (2) Promoting the increased utilization of energy
efficient products; (3) Preparing all reports for submission to other government
agencies as required by law; and (4) Developing a comprehensive information,
education, and communication strategy for public awareness on energy efficiency
programs and energy efficient products; (c) Energy Efficiency and Conservation
Public Sector Management Division whose functions shall include: (1) Coordinating
with the LGUs and the NEECCO to ensure consistency with the NEECP; (2) Providing
technical assistance to LGUs and other government agencies; (3) Enhancing,
expanding, and developing the GEMP; and (4) Providing technical support to the
IAEECC and acting as its Secretariat; (d) Energy Efficiency and Conservation
Performance Regulation and Enforcement Division whose functions shall include: (1)
Spearheading the creation of the NEECD in accordance with the provisions of this
Act; (2) Formulating, developing, and updating the MEP, energy labeling, and other
programs indicated herein: and (3) Enforcing the programs under this Act and its
IRR, such as the MEP and energy labeling. The Appliance Testing and Laboratory
Division of the Energy Research and Testing Laboratory Services, the Legal Services
under the General Legal Services Division, the Financial Services under the
Accounting Division, and each field office under their respective Energy Resources
Development and Utilization Divisions of the DOE shall hereby receive additional
plantilla positions to provide support service to the EUMB in the discharge of its
functions under this Act. The Secretary of DOE shall submit the revised
organizational structure and staffing complement of the reorganized EUMB which
shall be effective upon the approval of the Department of Budget and Management.
Section 30. Prohibited Acts. -The following acts are prohibited: (a) Failing to comply
with energy labeling; (b) Removing, defacing, or altering any energy label on the
energy-consuming product before the product is sold to the first retail purchaser or
leased to the first lessee; (c) Failing to provide accurate information or the provision
of false or misleading energy information as required to be submitted under this
Act; (d) Selling, leasing, or importing energy-consuming products that do not comply
with the MEP; (e) Failing or willfully refusing to appoint or designate a CECO or CEM;
(f) Willfully refusing to submit to an on-site inspection as indicated in Section 23 of
this Act; (g) Failing or willfully refusing to submit any of the reports required herein;
(h) Failing to comply with issued orders of the DOE in the discharge of its
enforcement powers; and (i) Violating any provision of the IRR, codes, and
guidelines issued in accordance with this Act.
Section 31. Explanation, Recommendation, Disclosure and Order. -Upon
determination that a reasonable ground exists that an establishment has committed
any of the prohibited acts under Section 30 of this Act, the DOE may consider the
following measures prior to the imposition of the appropriate fines and penalties for
such violations: (a) Require an explanation supported by reports, returns, and other
documents to rebut the alleged commission of the prohibited act; (b) In cases where
an explanation has been issued but the DOE finds a violation because of materially
insufficient reports, false returns, and nonsubmission of required documents,
provide a recommendation to the said establishment; (c) Disclose the name of the
establishment after it has received a recommendation and failed to comply with
such recommendation; and (d) Issue an order in cases where the said establishment
fails to follow or comply with the recommendation of the DOE: Provided, That failure
on the part of the establishment to comply with the order shall be a valid ground for
the imposition of fines and/or penalties in accordance with Section 32 of this Act.
Section 32. Fines and Penalties. -The DOE is empowered to impose fines and
penalties for any violation of the provisions of this Act, its IRR and other related
issuances. The fines and penalties shall range from a minimum of Ten thousand
pesos (₱10,000.00) to a maximum of One million pesos
(₱1,000,000.00): Provided, That this is without prejudice to the penalties provided
for under existing regulations prescribed by any other concerned government
agency: Provided, farther, That this is without prejudice to criminal liability as stated
in this Act.
Section 33. Criminal Liability. -The responsible officers and employees of any
establishment or organization who willfully commits any of the prohibited acts
under Section 30 of this Act shall, upon conviction, suffer the penalty of
imprisonment of one (1) year to five (5) years, or a fine ranging from a minimum of
One hundred thousand pesos (₱100,000.00) to One hundred million pesos
(₱100,000,000.00) or twice the amount of costs avoided for noncompliance,
whichever is higher, or both, upon the discretion of the court. Any person who
willfully aids or abets the commission of the prohibited acts under Section 30 of this
Act, or who causes the commission of such acts by another, shall be liable in the
same manner as the principal. In cases of association, partnership or corporation,
the penalty shall be imposed on the partner, president, chief operating officer, chief
executive officer, director, or officer responsible for the violation. CHAPTER X FINAL
PROVISIONS
Section 34. Appropriations. -Such sums as may be necessary for the successful
implementation of this Act shall be taken from the current appropriations of the
DOE. Thereafter, the amount needed for its continuous implementation shall be
included in the annual General Appropriations Act.
Section 35. Implementing Rules and Regulations (IRR). -The DOE shall, in
consultation with concerned government agencies and entities, LGUs, commercial,
industrial, and transport sectors, and other relevant stakeholders, promulgate the
IRR within six (6) months from the effectivity of this Act.
Section 36. Codes of Guidelines. -The DOE shall, in accordance with the provisions of
this Act, develop all codes and guidelines mentioned herein within six (6) months
from the promulgation of this Acts IRR.
Section 37. Congressional Oversight. -Upon the effectivity of this Act, the Joint
Congressional Power Commission created under Section 62 of Republic Act No.
9136, otherwise known as the "Electric Power Industry Reform Act of 2001" shall be
renamed to Joint Congressional Energy Commission and shall exercise oversight
powers over the implementation of this Act.
Section 38. Separability Clause. -If, for any reason, any section or provision of this
Act is declared to be unconstitutional or invalid, such part not affected thereby shall
remain in full force and effect.
Section 39. Repealing Clause. -All laws, presidential decrees, executive orders,
issuances, rules, and regulations, inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
Section 40. Effectivity. -This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.
Conclusion
With respect to efficiency and sustainability in energy resources, the Philippines is
looking forward to Republic Act No. 11285 being an integral step in leading to those
goals. Indeed, the standards, guidelines, and incentives under it will help open
avenues towards energy-conscious behavior from very diverse sectors. RA 11285
will reduce all adverse impacts of over-reliance on energy consumption on the
environment, reducing operational costs, and consequently, augmenting energy
security for the country. With such efforts put into the energy sector and with
energy-saving technologies and reduced energy consumption paired with increased
renewable energy, the Act will successfully implement energy and environmental
goals of the Philippines in the following decades.