Burdens, Benefits & Opportunities Salient provisions of Republic Act No. 11285 Energy Efficiency and Conservation Act Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
What is it about? The law requires and incentivizes the use of energy efficient systems and promotes the use of renewable energy technologies. Sec. 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 Custom Layout energy, increase in the utilization of energy efficiency and renewable energy technologies, and the delineation of responsibilities among various government agencies and private entities. 2 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
What this means to OSL clients: burdens benefits opportunities 3 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
burdens: regulatory requirements What is the MEP? DoE will: • Develop, impose, and review the MEP in consultation with the DTI-BPS; Minimum Energy Performance (MEP) refers to performance • Require manufacturers, importers, and standard which prescribes a dealers to comply with the MEP, and minimum level of energy performance for the commercial, to display on the packaging and on industrial and transportation their products the energy label showing sectors, and energy consuming- the energy requirement and products including appliances, lighting, electrical equipment, consumption efficiency of such products; machinery, and transport vehicles • Enforce and ensure compliance with that must be met or exceeded before they can be offered for sale prescribed ratings standards for energy or used for residential, commercial, performance in buildings and industries transport and industrial purposes; in coordination with pertinent government agencies and LGUs. 4 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
burdens: regulatory requirements Guidelines on Energy Conserving DPWH will: Design on Buildings • be responsible for ensuring the implementation of the Guidelines on Energy Conserving Design of Buildings and Utility Systems as an integral part of LGUs must consider the Guidelines on Energy the National Building Code, Roadway Conserving Design on Lighting Guidelines, and such other Buildings when issuing building related guidelines as may be issued by the permits and in approving DoE, and in accordance with Republic Act retrofitting of buildings. No. 6541, otherwise known as the National Building Code of the Philippines and other related laws. 5 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
burdens: regulatory requirements Energy Label DTI will: • require manufacturers, importers, and Energy labeling refers to the dealers to comply with the MEP, and to Philippine Energy Standards display the energy label and the energy and Labeling Program efficiency label showing the energy (PESLP) which requires requirement and consumption efficiency manufacturers to attach an of such products on the packaging and on energy label on their the products themselves. products to inform consumers about the energy performance and efficiency of the product; 6 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
burdens: regulatory requirements Transport Vehicle DoTr will: • be responsible for ensuring compliance of vehicle owners, manufacturers, and Refers to land, air, or sea importers with the MEP for transport vehicles conveying cargo or vehicles consistent with the specifications passengers, regardless of for all types of fuels prescribed under the size or weight classification; 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; • assist the DoE in the enforcement of and compliance with measures under the Energy Efficiency and Conservation Act. 7 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
Designated burdens: businesses must be aware that: Establishment • Vehicle manufacturers, importers, and dealers Refers to a private or public entity in must comply with fuel economy performance the commercial, industrial, transport, labeling requirements; power, agriculture, public works, and • Vehicle manufacturers, importers, and dealers other sectors identified by the Department of Energy (DoE) as shall provide technical information on the fuel energy intensive industries based on economy rating of the engine that will allow the their annual energy consumption in consumers to make an informed decision in the previous year or an equivalent annual index; the amount of choosing the vehicles for their use; consumption is indicated in this Act • New building construction and retrofitting of and subject to adjustment by the existing buildings must comply with the DoE as it deems necessary; minimum requirements as specified in the TYPE 1: between 500,000 kilowatt- Guidelines on Energy Conserving Design on hours (kWh) to 4,000,000 kWh for the Buildings; previous year; • Designated Establishments are required to TYPE 2: more than 4,000,000 kWh report to the DoE and integrate an energy for the previous year management system policy based on ISO 50001 or similar framework. 8 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
CECO / CEM burdens: businesses must be aware that: • Designated Establishments are required to employ a CECO or a CEM; • Certified Energy Conservation Officer All manufacturers, importers, distributors, and (CECO) refers to a professional who retailers of energy-consuming products shall comply obtains a certification as a CECO and with the MEP, subject their energy-consuming who shall be responsible for the products to energy performance testing, and submit supervision and maintenance of the facilities of Type 1 designated their respective product information to the DoE; establishments. • No manufacturer, importer, distributor, and retailer shall sell, lease, or import any energy-consuming Certified Energy Manager (CEM) refers to a licensed engineer who product, unless the product complies with the MEP obtains a certification as a CEM and and the product or its package is labeled in who shall be chosen by Type 2 accordance with the law; designated establishments to plan, • lead, manage, coordinate, monitor, The DoE will regularly select energy-consuming and evaluate the implementation of products and their models for examination, testing, sustainable energy management and verification; within their organizations; • Vehicle manufacturers, importers, and dealers must comply with fuel economy performance labeling requirements. 9 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
Energy Efficiency benefits: incentives for energy Projects efficiency projects • Fiscal Incentives - Upon certification by Refer to projects designed to the DoE, energy efficiency projects, as reduce energy consumption defined in this Act, shall be included in the and costs by any improvement annual investment priorities plan of the repair, alteration, or betterment BOI and shall be entitled to the incentives of any building or facility, or any equipment , fixture, or furnishing provided under the Omnibus Investments to be added to or used in any Code of 1987, and any other applicable laws building, facility, or vehicle for ten (10) years from the effectivity of the including the manufacturing and law: After this period, the inclusion of provision of services related thereto energy efficiency projects in the annual investment priorities plan shall be reviewed and may be extended by the BOI; • Nationality Restrictions under Omnibus Investments Code of 1987 not applicable. 10 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
Implementing Rules opportunities: creates new and Codes industries/serviceofferings • energy efficiency consulting; • energy efficiency audits; • sale of energy-saving machines, systems, The DoE shall promulgate the software; implementing rules and regulations ( IRR ) within six months from the • enhanced engineering, construction effectivity of the law. It will also services to comply with the law develop the codes and guidelines • training for certifications for energy within six months from the promulgation of the law’s IRR. conservation officers; • new insurance products: to mitigate credit risks associated with energy efficiency investments. 11 Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
Questions? Disclaimer: This presentation is not meant to substitute for direct advice of legal counsel. This presentation only provides selected provisions of the law and is not designed to be an exhaustive exposition of the law. The complete text of the law can be downloaded from: https://www.officialgazette.gov.ph/do wnloads/2019/04apr/20190412-RA- 11285-RRD.pdf Ocampo & Suralvo Law Offices ● www.ocamposuralvo.com ● info@ocamposuralvo.com
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