Act Irr 11697

Download as pdf or txt
Download as pdf or txt
You are on page 1of 21

S.

No, 1382
H. No. 10213

|{ppublir nf tljf |^l|tltppmps

of fI|o pi|tlTpptnog
(iHctrocfHamla

’^tglffeptifl} dmtgrpsB
S

®[{irh ^pguIar<;^pssion

Begun and held in Metro Manila, on Monday, the twenty-sixth


day of July, two thousand twenty-one.

[ Republic Act No. 11697)


AN ACT PROVIDING FOR THE DEVELOPMENT OF THE
ELECTRIC VEHICLE INDUSTRY

Be it enacted by the Senate and House of Representatives of the


Philippines in Congress assembled:

CHAPTER I

GENERAL PROVISIONS

Section l. Short Title. - This Act shall be referred to


as the “Electric Vehicle Industry Development Act”.

Sec. 2. Declaration of Policy. - It is hereby declared the


policj7 of the State to:

(a) Ensure the country’s energy security and independence


by reducing reliance on imported fuel for the transportation
sector;
(b) Provide an enabling environment for the development
of electric vehicles including options for micromobility as an
attractive and feasible mode of transportation to reduce
dependence on fossil fuels;

(c) Promote and support innovation in clean, sustainable,


and efficient energy to accelerate social progress and human
development by encouraging public and private use of low
emission and other alternative energy technologies;

(d) Protect the health and well-being of the people from


the hazards of pollution and the greenhouse effect;

(e) Safeguard and improve the integrity, reliability, and


stability of the country’s electric power grid by optimizing the
location of energy sources relative to demand;

(f) Pi’omote inclusive and sustainable industrialization


while recognizing the role of the private sector in order to
support the transition to new technologies, generate jobs, spur
small and medium enterprise growth, attract investments,
grow globally competitive and innovative industries, and
upgrade the country’s participation in regional and global value
chains, consistent with the Philippine Development Plan and
the country’s international obligations under the United
Nations Sustainable Development Agenda;

(g) Generate employment opportunities for our local skilled


workforce to sustain their livelihood;

(h) Protect and safeguard the country’s cultural heritage


through the Philippine transportation system, which remain
an underlying factor in progress and innovation; and

(i) Recognize the role of local government units (LGUs)


as competent partners of the national government in the
smooth transition to this innovation by providing them
capacity-building support.

Sec. 3. Scope and Application. - Tliis Act shall apply


to the manufacture, assemhly, importation, construction,
installation, maintenance, trade and utilization, research and
development, and regulation of electric vehicles, charging
stations and related equipment, parts and components,
batteries, and related support infrastructure.
Sec. 4. Definition of Terms. - As used in this Act, the
following terms shall be defined as stated below:

(a) Battery electric vehicle (BEV) refers to an electrically


propelled vehicle with only a traction battery as power source
for vehicle propulsion;

(b) Battery swapping station refers to a facility which


allows electric vehicle users to exchange a near-empty
discharged battery with a fully charged battery;

(c) Centralized vehicle-to-grid facilities refer to


establishments which are allowed to supply power to the grid
using electric vehicles;

(d) Certificate of Inspection refers to a document issued


by the building official of an LGU as a requirement for the
installation of power lines to a building or structure to certify
the completeness of the installation of all electrical wirings,
pursuant to Republic Act No. 6541 as revised by Presidential
Decree No. 1096, otherwise known as the “National Building
Code of the Philippines”;

(e) Charging fee refers to the amount imposed on electric


vehicle users in exchange for the use of commercial use
charging stations. Its individual components shall be unbundled
pursuant to regulations issued by the Department of Energy
(DOE);

(f) Charging station refers to a facility with equipment


for the delivery of electrical energy to electric vehicles or its
battery, installed in an enclosure with special control functions
and communications, and may be located off the vehicle. For
purposes of this Act, charging stations shall include battery
swapping stations;

(g) Charging station service provider refers to a natural


or juridical person, duly accredited by the DOE, who sells,
constructs, installs, maintains, owns, or operates charging
stations or any of its components for a fee;

(h) Commercial use charging stations refer to the


utilization of a charging station by the general pubhc or a
defined group of individuals;
(i) Distribution system refers to the system of wires and
associated facilities belonging to a distribution utility, extending
between the delivery points on the transmission,
subtransmission system, or generating plant connection and
the point of connection to the premises of the end-user;

(j) Distribution utility (DU) refers to any electric


cooperative, private corporation, or government-owned utility
which has a franchise or authority to operate a distribution
system including those whose franchise or authority covers
economic zones;

(k) Electric vehicle (EV) refers to a vehicle with at least


one (1) electric drive for vehicle propulsion. For purposes of
this Act, it includes a BEV, hybrid-electric vehicle, hght electric
vehicle, and a plug-in hybrid-electric vehicle;

(l) EV industry refers to the manufacture, importation,


assembly, construction, installation, maintenance, trade and
utihzation, research and development, and regulation of EVs,
charging stations and related equipment, parts and
components, batteries, and related support infrastructure;

(m) Green routes refer to public transportation routes


identified and designated by provinces, cities, and
municipalities and approved by the Department of
Transportation (DOTr) to be exclusively traversed by electric
public utihty vehicles (PUVs);

(n) Hybrid-electric vehicle (HEV) refers to a vehicle with


both a rechargeable energy storage system and a fueled power
source for propulsion;

(o) Importer refers to any individual, partnership,


corporation, or other entity, incorporated, organized, and
existing under Philippine laws, engaged in the importation of
completely built units of EV, charging stations and related
equipment, parts and components, and batteries;

(p) Just transition refers to globally recognized principles


that should guide the transition to environmentally sustainable
economies and societies;
(<1) Light electric vehicles refer to EVs such as electric
scooters, electric bicycles, electric personal transport, and other
similar vehicles weighing less than fifty kilograms (50 kg);

(r) Manufacturer or assembler refers to any individual,


partnership, corporation, or other entity incorporated,
organized, and existing under Philippine laws, engaged in the
manufacture and assembly of EVs, charging stations and
related equipment, parts and components, and batteries;

(s) Micromobility refers to alternative modes of


transportation which are provided by light electric vehicles;

(t) Own-use charging stations refer to the utilization of


a charging station exclusively by an individual;

(u) Plug-in hybrid-electric vehicle refers to an HEV with


rechargeable energy storage system that can be charged from
an external electric energy source;

(v) Private buildings and establishments refer to


residential, commercial, and industrial structures owned or
leased by private natural or juridical persons, and in the case
of commercial and industrial structures, whose goods and
services are available to the public;

(w) Public buildings and establishments refer to


structures owned or leased by the government through its
departments, agencies, bureaus, offices, government-owned
and -controlled corporations (GOCCs), and LGUs; and

(x) Self-generating charging stations refer to charging


stations which source electricity from the grid and also from
on-site installed generation facilities.

CHAPTER II

Role of Government Agencies


Sec. 5. Government Regulations. — All government
regulations related to the EV industry shall be formulated to
facilitate the creation of an enabling environment for
competitive, equitable, and non-discriminatory private sector
participation, with preference for indigenous technologies, to
attain the long-term goal of energy security, energy sufficiency,
and stable energy prices.

Sec. 6. Comprehensive Roadmap for the Electric Vehicle


Industry (CREVI). — The CREVI refers to a national
development plan for the EV industry with an annual work
plan to accelerate the development, commercialization, and
utihzation of EVs in the country comprised of the following
four (4) components:

(a) EVs and charging stations component which


includes:

(1) Development of standards and specification of EVs


and charging stations,

(2) Industry promotion of EVs,

(3) Designation of dedicated parking slots for EVs, and

(4) Construction or installation of charging stations in


dedicated parking slots and dedicated spaces,

(b) Manufacturing component which includes:

(1) Promotion and development of the local


manufacturing of the EV industry, and

(2) Manufacturing standards for EVs, batteries and


facilities including recycling facilities, parts and components,
and charging stations and related equipment,

(c) Research and development component, and

(d) Human resource development component which


includes skills and capacity-building of needed personnel.

The CREVI shall be incorporated in the Philippine Energy


Plan and the National Transport Policy.

Sec. 7. Role of the Department of Energy. - The DOE


shall be the primary agency tasked with the promotion of the
adoption of EVs and the development of charging stations and
related equipment. Towards this end, the DOE shall:
(a) Promulgate uniform and streamlined rules,
regulations, and standards on the use, operations, and
maintenance of charging stations and related equipment, in
coordination with other concerned agencies, to include the
accreditation of charging station service providers and
requirements imposed by DUs on charging stations and
charging station service providers;

(b) Convene, within two (2) months from the effectivity


of this Act, a technical working group comprised of the DOE,
DOTr, Department of Trade and Industry (DTI), Department
of Science and Technology (DOST), Department of Environment
and Natural Resources (DENR), Department of Public, Works
and Highways (DPWH), Department of the Interior and Local
Government (DILG), and the National Economic and
Development Authority (NEDA) to ensure harmonized pohcies
and consistent and streamlined standards and regulations in
the EV industry. The members of the technical working group
shall fuUy cooperate and collaborate in the harmonization of
policies, including the different components of the CREVI and
the creation, promulgation, and streamhning of standards and
regulations in the EV industry. The technical working group
shall be chaired by the DOE. It shall meet regularly or as
necessary. The technical working group may also invite pubhc
and private stakeholders as resource persons;

(c) Develop and update the EV and charging stations


component of the CREVI under Section 6(a) of this Act in
coordination with the DOTr, and in consultation with the
LGUs and other relevant national government agencies
(NGAs). The component shall be completed not later than the
30th of May of every year;

(d) Develop and update the CREVI by consolidating its


various components pursuant to Section 6 of this Act. The
CREVI shall be made pubhcly available on its website not later
than the 30th of September of every year;

(e) Implement, together with the DOTr and DTI, plans


and programs pursuant to Section 7(a) of this Act through
information, education, communication, and demonstration
campaigns consistent with the CREVI;
(f) Accredit charging station service providers, and make
available to the public on its website an annual inventory of
all accredited charging station service providers and a list of
all commercial use charging stations in the country;

(g) Require DUs to submit their respective charging


infrastructure development plans as part of their Distribution
Development Plans (DDPs) not later than the 30th of August
of every year;

(h) Enforce compliance with the installation of charging


stations as required under Sections 18 and 19 of this Act;

(i) Enforce compliance of charging stations with the


Philippine Electrical Code and other applicable provisions of
Republic Act No. 7920, otherwise known as the “New
Electrical Engineering Law”, the Philippine Distribution Code,
and other relevant standards. Towards this end, the DOE shall
conduct regular inspections of commercial use charging
stations;

(j) Ensure compliance with the unbundling of charging


fees by commercial use charging stations;

(k) Consolidate and centralize data from the Energy


Regulatory Commission (ERC), DTI, DOTr, DENR, Land
Transportation Office (LTO), Land Transportation Franchising
and Regulatory Board (LTFRB), LCDs, and other relevant
NGAs insofar as EVs and charging stations are concerned for
easy access of the public; and

(l) Perform all other acts that are analogous to the


foregoing, which are necessary and incidental to accomplish
the policy objectives of this Act.

Sec. 8. Role of the Energy Regulatory Commission. —


In addition to its functions under Republic Act No. 9136,
otherwise known as the “Electric Power Industry Reform Act
of 2001”, and other existing laws, the ERC shall;

(a) Regulate the rates charged by DUs on all charging


stations, taking into account, among others, the utilization of
the charging station, the promotion of efficiency, the
rate-setting methodology of the ERC for DUs pursuant to
Section 43 of Repubhc Act No. 9136, the unique requirements
of charging stations, and its effect on the DU’s demand profile
and distribution system;

(b) Promulgate uniform and streamlined rules and


requirements for self-generating, charging stations and
centralized vehicle-to-grid facihties; and

(c) Perform all other acts that are analogous to the


foregoing, which are necessary and incidental to accomplish
the policy objectives hf this Act.

Sec. 9. Role of the Department of Transportation. — The


DOTr shall be the primary agency tasked with the
development of EV demand generation, and the regulation and
registration of EVs, as well as franchising of EVs used for
public transportation. Towards this end, the DOTr shall:

(a) Coordinate with the DOE in the preparation of the


EV and charging stations component of the CREVI pursuant
to Section 7(c) of this Act;

(b) Promulgate uniform and streamlined policies, rules,


and requirements through its attached agencies on the use,
operations, inspection, and registration of EVs, as well as
franchising of EVs used for public transportation: Provided,
That fight electric vehicles which shall be for exclusive private
use shall not be required to register with the DOTr and its
attached agencies;

(c) Ensure that the CREVI shall form part of and be


consistent with a comprehensive sustainable transportation plan
established by the government;

(d) Coordinate with the National Commission for Culture


and the Arts (NCCA) on the preservation of the artistic design
of traditional jeepneys for EVs intended for use for public
transportation: Provided, That as far as practicable, all
manufacturers and importers of EVs intended for use for
public transportation shall coordinate with the DOTr and the
NCCA to emulate the artistic design of the traditional jeepneys
to preserve the country’s cultural heritage;

(e) Conduct information, education, communication, and


demonstration campaigns, together with the DOE and DTI;
10

(f) Mandate the inclusion of green routes in the LTFRB


route plans;

(g) Incorporate EVs in the PUV Modernization Program;

(h) Develop a program for a just transition of the gradual


phase-in of electric PUVs, in coordination with other relevant
pubhc and private stakeholders;

(i) Conduct capacity-building activities for affected PUV


operators and drivers in coordination with the DOE and DTI;
and

(j) Perform all other acts that are analogous to the


foregoing, which are necessary and incidental to accomplish
the policy objectives of this Act.

Sec. 10. Role of the Department of Ti'ode and Industry. —


The DTI shall be the primary agency tasked with the
promotion and development of the local manufacturing of the
EV industry. Towards this end, the DTI shall:

(a) Through the Bureau of Philippine Standards,


formulate and review regularly relevant Philippine National
Standards for the EV industry to ensure consumer protection
and trade facilitation taking into consideration developments
in trade and latest technology, including safety, quality, and
environmental advances in the EV industry;

(b) Regulate the quality and safety of parts and


components by implementing relevant standards to ensure
product quality and consumer protection;

(c) Develop and update regularly the manufacturing


component of the CREVI, in coordination with the DOE, DOTr,
Board of Investments (BOI), and other relevant NGAs
pursuant to Section 6(b) of this Act. The manufacturing
component shall be submitted to the DOE not later than the
30th of May of every year;

(d) Develop and update regularly the human resource


development component of the CREVI, in coordination with the
Department of Labor and Employment (DOLE), Technical
Education and Skills Development Authority (TESDA),
II

Commission on Higher Education, and other relevant NGAs


pursuant to Section 6(d) of this Act. The human resource
development component shall be submitted to the DOE not
later than the 30th of May of every year;

(e) Develop, through the BOI and in coordination with


other relevant NGAs, the EV incentive strategy pursuant to
Section 24(a) of this Act;

(f) Develop, in coordination with the DENR, a program


for the adoption of manufacturing and recycling standards for
EV batteries and facilities; and

(g) Perform all other acts that are analogous to the


foregoing, which are necessary and incidental to accomplish
the policy objectives of this Act.

Sec. 11. Role of Local Government Units. - In addition


to its functions under existing laws, LGUs shall:

(a) Include green routes in their respective Local Public


Transport Route Plans consistent with the National Transport
Policy;

(b) Issue Certificates of Inspection to charging stations;

(c) Provide segregated lanes for hght electric vehicles in


all major local and national roads, in coordination with the
DPWH: Provided, That such lanes may be integrated with
bicycle lanes;

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

(e) Issue permits for the construction or renovation of


buildings or establishments pursuant to the guidelines
promulgated by the DPWH in Section 12 of this Act; and

(f) Ensure compliance of public and private buildings


and establishments with Section 18 of this Act.
12

Sec. 12. Role of the Department of Public Works and


Highways. - In addition to its functions under existing laws,
the DPWH shall establish guidelines on the following;

(a) Construction or installation of charging stations and


other related equipment in buildings and other establishments;
and

(b) Issuance of permits for the construction or renovation


of buildings or establishments pursuant to Section 17 of this
Act.

Sec. 13. Role of the Department of Science and


Technology. - In addition to its functions under existing laws,
the DOST shall;

(a) Develop and update regularly the research and


development component of the CREVI, in consultation with the
DTI and other relevant NGAs pursuant to Section 6(c) of this
Act. The research and development component shall be
submitted to the DOE not later than the 30“ of May of every
year; and

(b) Provide technical and financial support for the conduct


of localized transport studies by accredited state universities
and colleges at the local government level.

Sec. 14. Role of the Department of Environment and


Natural Resources. - In addition to its functions under
existing laws, the DENR shall;

(a) In consultation with the DOE, DOTr, DTI, and other


public and private stakeholders, promulgate rules and
guidelines on the recycling and disposal of EVs, charging
stations and related equipment, parts and components, and
batteries consistent with the provisions of Republic Act
No. 6969 or the “Toxic Substances and Hazardous and Nuclear
Wastes Control Act of 1990” and related issuances;

(b) In coordination with the DOTr, include EVs in the


comprehensive air pollution management and control program
in accordance with Republic Act No. 8749, otherwise known
as the “Philippine Clean Air Act of 1999”; and
13

(c) In coordination with the DOE, estabhsh guidelines for


the accui’ate characterization, disposal, and handling of wastes
involving EVs, charging stations and related equipment, parts
and components, and batteries.

Sec. 15. Role of the National Economic and


Development Authority. — In recognition of the importance of
the role of the EV industry in national development, the NEDA
shall include the CREVI in the Philippine Development Plan.

CHAPTER III

Demand Generation and Industry development

Sec. 16. Mandatory EV Share in Corporate and


Government Fleets. - The following entities shall ensure that
at least five percent (5%) of their fleet, whether owned or
leased, shall be EVs within the time frame indicated in the
CREVI:

(a) Industrial and commercial companies such as cargo


logistics companies, food delivery companies, tour agencies,
hotels, power utilities, and water utilities;

(b) Pubhc transport operators, including minibuses, buses,


jeepneys, vans, tricycles, taxis, and transport network vehicle
services; and

(c) LGUs, NGAs, and GOCCs: Provided, That the


electrification of government fleets shall be considered as a
government energy efficiency project under Republic Act
No. 11285, otherwise known as the “Energy Efficiency and
Conservation Act”.

The CREVI shall provide a timeline for the gradual


increase of such percentage until the entire fleet of the covered
entities will all be EVs. In the implementation of this
provision, the availabihty and sufficiency of energy supply and
EV charging stations as well as other conditions affecting the
optimal utilization of EVs shall be taken into consideration.

Sec. 17. Dedicated Parking Slots for Electric Vehicles


in Private and Public Buildings and Establishments. - Private
and public buildings and establishments constructed after the
14

effectivity of this Act and pursuant to the National Building


Code of the Phihppines shall designate dedicated parking slots
for the exclusive use of EVs to include hght electric vehicles:
Provided, That the number of dedicated parking slots shall
be proportional to the total number of parking slots within
the building or establishment as provided in the CREVI:
Provided, further. That if there are twenty (20) or more
parking slots, there should be at least five percent (5%)
dedicated parking slots for EVs of the total number of parking
slots within the building or establishment: Provided, finally.
That existing private and pubhc buildings and estabhshments
shall comply with the foregoing requirements within the time
frame indicated in the CREVI.

No permit shall be issued by the LGU for the


construction or renovation of a building or establishment
unless this section has been complied with.

Sec. 18. Construction or Installation of Charging


Stations in Dedicated Parking Slots. — The CREVI shall
determine when dedicated parking slots shall be installed with
a charging station either by the owner of the building or
establishment or a charging station service provider: Provided,
That the owner of the private or public building or
establishment shall have the first priority to install, operate,
or maintain a charging station in its premises.

The charging stations installed in private and public


buildings and estabhshments may be own-use charging stations
or commercial use charging stations: Provided, That the
CREVI shall identify specific public buildings and
establishments to be installed with commercial use charging
stations for the general public.

Sec. 19. Construction or Installation of Charging


Stations in Gasoline Stations. - Select gasoline stations
identified in the CREVI shall designate dedicated spaces for
the installation of commercial use charging stations for the
general public. The CREVI shall determine when dedicated
spaces in gasohne stations shah be installed with a commercial
use charging station either by the owner of the gasohne station
or a charging station service provider: Provided, That the
owner of the gasoline station shall have the first priority to
install, operate, or maintain a commercial use charging station
15

in itva premises. A gasoline station, if required under the


CREVI to have a designated space for a charging station, shall
not be issued a construction, operation, or compliance permit
by the DOE unless the owner shows that there is ample space
for the construction or installation of charging stations within
its premises.

Sec. 20. Use of Charging Stations. - The construction,


installation, utilization, operation, and maintenance of charging
stations shall comply with all rules, regulations, and standards
issued pursuant to this Act.

Own-use charging stations shall not be allowed to impose


and collect charging fees. Commercial use charging stations
may be allowed to impose and collect charging fees, which
shall be unbundled.

Sec. 21. Permits. - The time frame for the procedure


of all permits and licenses issued pursuant to this Act shall
be governed by Republic Act No. 11234, otherwise known as
the “Energy Virtual One-Stop Shop Act”. Towards this end,
the EVOSS Steering Committee shall include the Anti-Red Tape
Authority among its members.

Sec. 22. Duties and Responsibilities of Owners or


Operators of Charging Stations. - An owner or operator of
a charging station shall have the following duties and
responsibihties:

(a) Comply with the applicable rules, requirements, and


standards including the national standard for EV power output
rating and safety distance for construction or installation of
charging stations, as well as aU applicable permits and hcenses
of relevant NGAs and LGUs in accordance with this Act;

(b) Pay the DU for electricity consumption of the


charging station, when applicable;

(c) Unbundle the charging fees imposed by commercial


use charging stations; and

(d) Regularly submit to the DOE an unbundled


structure of the charging fees imposed by commei'cial use
charging stations on EV users.
16

Sec. 23. Duties and Responsibilities of Distribution


Utilities. - A DU shall have the following duties and
responsibihties;

(a) Provide the necessary power requirement for the


establishment and operation of charging stations consistent
with its DDP;

(b) Prepare the charging station infrastructure


development plan and incorporate the same in its DDP; and

(c) Comply with Section 26 of Repubhc Act No. 9136 as


implemented by EEC’s applicable rules and guidelines on
business separation and unbundling in the event that it
engages in the business of a charging station service provider.

CHAPTER IV

Incentives
Sec. 24. Fiscal Incentives. —

(a) Manufacturing

The following activities shall undergo an evaluation


process to determine their inclusion in the strategic investment
priority plan and possible entitlement to the incentives and
for the length of time as provided under Executive Order
No. 226, otherwise known as the “Omnibus Investments Code
of 1987”, as amended by Republic Act No. 11534, otherwise
known as the “Corporate Recovery and Tax Incentives for
Enterprises Act” and Title XIII of the National Internal
Revenue Code of 1997 as amended by the Corporate Recovery
and Tax Incentives for Enterprises Act, and other applicable
laws:

(1) Manufacture and assembly of EVs, charging stations,


batteries, and parts and components; and

(2) The establishment and operations of charging


stations and other related support infrastructure such as
research and development centers, training centers, testing
centers, and waste treatment facilities.

In addition, the DTI, through the BOI, shall recommend


an EV incentive strategy to the Fiscal Incentives Review Board
17

for approval, as part of the manufacturing component of the


CREVI, similar to Executive Order No. 182, series of 2015,
otherwise known as the “Comprehensive Automotive
Resurgence Strategy Program”. The incentive strategy shall:

(1) Narrow the cost gap between EVs and traditional


motor vehicles and enable the shift of the local traditional
motor vehicle industry to EVs;

(2) Provide tim^-bound, targeted, performance-based, and


transparent fiscal and non-fiscal support in order to attract
EV and EV parts manufacturing, particularly electronic parts
and other strategic components, batteries, charging stations,
and the establishment of testing facihties; and

(3) Set local production targets to be achieved within


eight (8) years from the promulgation of the EV incentive
strategy, subject to extension as determined by the DTI.

The DTI, through the BOI, shall establish the apphcation


and selection process for enrollment and qualification of
participants, imposing such terms and conditions as it may
deem necessary to promote the objectives of the incentive
strategy: Provided, That registered participants shall not be
allowed to register the same activity or product under any
other program granting incentives.

(b) Importation

The importation of completely built units of EVs shall


be entitled to the incentives under Republic Act No. 10963,
otherwise known as the “Tax Reform for Acceleration and
Inclusion (TRAIN)”: Provided, That in the case of imported
electric jeepneys and electric tricycles, the Department of
Finance, upon recommendation of the DTI, may suspend the
exemption in order to protect local manufacturers.

The importation of completely built units of charging


stations shall be exempt from the payment of duties for
eight (8) years from the effectivity of this Act.

The importation of capital equipment and components


used in the manufacture or assembly of EVs and construction
or installation of charging stations shall undergo an evaluation
process to determine their inclusion in the strategic investment
18

priority plan and possible entitlement to the incentives and


for the length of time as provided under the Omnibus
Investments Code of 1987, as amended, Title XllI of the
National Internal Revenue Code of 1997, as amended, and
other applicable laws.

(c) Utilization

A thirty percent (30%) discount for BEVs and fifteen


percent (15%) discount for HEVs from the payment of the
motor vehicle user’s charge imposed by the LTO under
Republic Act No. 8794, otherwise known as “Motor Vehicle
User’s Charge Act”, as well as vehicle registration and
inspection fees shall be available for eight (8) years from the
effectivity of this Act.

Sec. 25. Non-Fiscal Incentives. — The following non-fiscal


incentives shall remain in force for eight (8) years from the
effectivity of this Act:

(a) For EV users:

(1) Priority registration and renewal of registration, and


issuance of a special type of vehicle plate by the LTO;

(2) Exemption from the mandatory unified vehicular


volume reduction program, number-coding scheme, or other
similar schemes implemented by the Metropolitan Manila
Development Authority, other similar agencies, and LGUs;

(3) Expeditious processing by the LTFRB of applications


for franchise to operate, including its renewal, for PUV
operators that are exclusively utilizing EVs; and

(4) Availment of TESDA Training Programs on EV


assembly, use, maintenance, and repair for its employees;

(b) For EV manufacturers and importers, the expeditious


processing by the Bureau of Customs on the importation of
parts and components for the manufacture and assembly of
EVs; and

(c) For EV manufacturers, the government shall allow


expert foreign nationals to be employed under a form of
19

technology transfer agreement, subject to the guidehnes that


shall be issued by the DOLE, the Professional Regulatory
Commission, and the DTI.

Sec. 26. Financial Assistance. - Government financial


institutions and other financial institutions, in accordance with
and to the extent allowed by the enabhng provisions of their
respective charters or applicable laws, are encouraged to
provide concessional financial packages for entities engaged in
the activities mentioned in Section 24 of this Act, and
preferential interest rates and payment scheme on consumer
loans for the acquisition of EVs and charging stations.

The Bangko Sentral ng Pilipinas shall encourage banks


to lend a certain percentage of their portfolio to EV, charging
stations, and battery manufacturers, assemblers, and
end users: Provided, That financing packages for EV fleets
shall be prioritized and the procedure shall be streamlined.

CHAPTER V

FINAL Provisions

Sec. 27. Establishment of Dedicated Offices. - The DOE,


DOTr, and DTI shall estabhsh dedicated offices for the efiective
implementation of this Act. The organizational structure and
staffing complement shall be determined by the Secretaries of
the DOE, DOTr, and DTI, in consultation with the Department
of Budget and Management, and in accordance with existing
civil service rules and regulations.

The budgetary requirements necessary for the


establishment of the dedicated offices shall be taken from the
current appropriations of each agency concerned. Thereafter,
the funding for the dedicated offices shall be included in the
annual General Appropriations Act.

Sec. 28. Penalties. - A fine ranging from a minimum


of Fifty thousand pesos (P50,000.00) to a maximum of Five
hundred thousand pesos (P500,000.00), and may include
suspension or revocation of permits issued, if apphcable, shall
be imposed upon any person, both natural and juridical, who
violates Sections 6, 16, 17, 18, 19, 20, 21, 22, and 23 of this
Act and all rules, regulations, and standards promulgated
pursuant to Sections 7, 8, 9, 10, 11. 12, 13, 14, and 15 of
20

this Act: Provided, That this is without prejudice to the


penalties provided under existing laws, rules, and regulations
prescribed by other concerned agencies. The DOE, DOTr, and
DPWH shall, in coordination with the DTI and the DILG,
issue appropriate rules and regulations on the imposition of
these fines and penalties.

Sec. 29. Congressional Oversight. - The Joint


Congressional Energy Commission (JCEC), created under
Republic Act No. 9136, as amended, shall exercise oversight
powers over the implementation of this Act. The DOE, DOTr,
DTI, and other relevant NGAs shall submit the CREVI and
a report on the implementation of this Act to the JCEC not
later than the 1st day of December of every year.

Sec. 30. Implementing Rules and Regulations (IRR). -


The DOE together with the DOTr shall, in coordination with
the DTI, and in consultation with other relevant NGAs and
public and private stakeholders, issue the IRR within one
hundred twenty (120) days upon the effectivity of this Act.

Failure of the relevant government agencies to promulgate


the IRR within the specified period shall subject the heads of
these government agencies to administrative penalties under
applicable civil service laws.

Should the IRR contain provisions that are contrary to


this Act, the heads of the government agencies responsible for
such provision, when done in bad faith or with gross
negligence, shall be held administratively liable.

Sec. 31. Separability Clause. — If any portion or provision


of this Act is declared unconstitutional, the remainder of this
Act or any provision not affected thereby shall remain in force
and effect.

Sec. 32. Repealing Clause. — Any law, presidential decree


or issuance, executive order, letter of instruction, rule or
regulation inconsistent with the provisions of this Act is hereby
repealed or modified accordingly.
21
Sec. 33. Effectivity. — This Act shall take effect fifteen
(15) days following its complete publication in the Official
Gazette or in a newspaper of general circulation.

Approved,

LORD'ALLy^ JAY Q. VELASCO TE C. SOTTO HI


Spea)ku_Jf the House of the Senate
of Representatives

This Act which is a consolidation of Senate Bill No. 1382


and House Bill No. 10213 was passed by the Senate of the
Philippines and the House of Representatives on December 16,
2021 and January 17, 2022, respectively.

Mar MENDOZA Myra Marie d. villarica


oral Secretary of the Senate
ntatives

Approved;
into mw Oii
without the signature of the Pre?i
(Sent, in accordance with Article VI.
•Sect'on 27 (1) of the Oon.stitu tinn

RODRIGO ROA DUTERTE


President of the Philippines

You might also like