Philippines Energy Efficiency and Conservation Act enacted in the Philippines

President Duterte of the Philippines signed the Energy Efficiency and Conservation Act (Republic Act No. 11285 [RA 11285]) on April 12, 2019. This is the first act of its kind in the Philippines that incentivizes energy efficiency and conservation measures and institutionalizes the improvement of energy efficiency, which has been long awaited. According to the Philippine News Agency (PNA), the Act was announced to the media in the Philippines on May 7. As previously reported, this Act is a consolidation of Senate Bill No. 1531 and House Bill No. 8629 passed by the Senate of the Philippines and the House of Representatives on January 30, 2019.

In addition to the contents already reported, this Act provides for the following topics.

Topics Details
Responsibilities of the government The government shall institutionalize 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. In this way, the government will 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.
IAEECC The Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) is created to promote energy efficiency and conservation. The roles of IAEECC are to evaluate and approve government energy efficiency projects, as defined under this Act, and to provide strategic direction in the implementation of the Government Energy Management Program (GEMP). The GEMP is a 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.

The IAEECC shall be chaired by the Secretary of the Department of Energy (DOE) and composed of the Secretaries of the Department of Budget and Management, Department of Finance, Department of Trade and Industry, Department of Transportation, Department of Science and Technology, Department of the Interior and Local Government, and Department of Public Works and Highways, and the Director General of the National Economic and Development Authority. The specific roles of the IAEECC include the following.

  • Prepare an annual assessment of opportunities for energy cost reduction in state-owned and leased buildings and facilities designated by the IAEECC.
  • Review all proposed capital projects and energy cost operating budgets of agencies designated by the IAEECC.
  • Recommend energy conservation measures which would reduce operating costs in state-owned and leased buildings and facilities.
  • Provide technical and consultative assistance concerning energy cost management or conservation to any officer or entity of the government.
  • Annually recommend capital projects and modifications to specific operations and maintenance for state-owned and leased buildings and facilities designed to reduce energy consumption and costs.
  • Issue a report describing the status of government energy efficiency projects and the GEMP.
  • Develop guidelines as may be necessary or desirable to aid the work of the IAEECC after study of existing or emerging energy conservation technologies.
Energy performance standards and energy labeling The DOE shall develop the Minimum Energy Performance (MEP) for energy-consuming products. All manufacturers, importers, distributors, and retailers of energy-consuming products shall comply with the MEP. The DOE shall also prescribe the energy labeling. Manufacturers and importers are required to display the prescribed energy labels on products sold in the Philippines.

Similarly, fuel economy performance standards and labeling will be institutionalized by the DOE for “vehicles.”

Additionally, measures regarding energy performance will be also introduced for “buildings.”

Energy efficiency and conservation in designated establishments Energy efficiency and conservation measures shall be implemented for designated establishments. The “designated establishments” as defined in this Act are establishments with energy consumption exceeding a specified value. Specifically, those with an annual energy consumption of 500,000 kWh to 4 million kWh are classified as Type 1, and those with an annual energy consumption of more than 4 million kWh are classified as Type 2.

Designated establishments are required to set up programs to promote energy efficiency, set up annual targets for energy conservation, keep records on monthly energy consumption data, and conduct an energy audit once every three years.

 

The original text of the Energy Efficiency and Conservation Act can be downloaded from the following URL.
https://www.officialgazette.gov.ph/downloads/2019/04apr/20190412-RA-11285-RRD.pdf

 

EnviX Comment

Since the issuance of the Act, the Department of Energy has published several implementing regulations. See more details about each regulations in the following: