RA 11285 - Energy Efficiency and Conservation Act (2019)

(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.

(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;

(n) 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;

(y) 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.

(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;

(n) 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.

(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;

(n) 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.

(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:

(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.

(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.

(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.

(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.

(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.

(a) Manage the energy consumption of facilities, equipment, and devices;

(b) Administer the following:

(c) Fulfill other responsibilities as indicated in this Act.

(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.

(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.

(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.

(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.