RA 11697 - Electric Vehicle Industry Development Act (2022)

(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) Promote 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 Nationals 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.

(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 establishment 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 stations 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, install, 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 stations by the general public 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, light electric vehicle, and a plug-in hybrid-electric vehicle;

(l) EV industry refers to the manufacture, importation, assembly, construction, installation, maintenance, trade and utilization, research and development, and regulation of EVs, charging stations and related equipment, parts and components, batteries, and other 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 utility 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;

(q) Light electric vehicles refer to EVs such as an 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 sources;

(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.

(a) EVs and charging stations component which includes:

(b) Manufacturing component which includes:

(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.

(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 policies and consistent and streamlined standards and regulations in the EV industry. The members of the technical working group shall fully cooperate and collaborate in the harmonization of policies, including the different components of the CREVI and the creation, promulgation, and streamlining 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 public and private stakeholders as resources 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 EV and charging stations component of the CREVI by consolidating its various components pursuant to Section 6 of this Act. The CREVI shall be made publicly 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 trough information, education, communication, and demonstration campaigns consistent with the CREVI;

(f) Accredit charging stations 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 Section 18 and 19 of this Act;

(i) Enforce 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), LGUs, and other relevant NGAs insofar as EVs and charging stations are concerned for every 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.

(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 Republic 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 facilities; and

(c) Perform all other acts that are analogous to the foregoing, which are necessary and incidental to accomplish the policy objectives of this Act.

(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 light 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 jeppneys 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;

(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 public 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.

(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 that 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), 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 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.

(a) Include green routes in their respective Local Public Transport Route Plans consistent with the National Transport Policy;

(b) Issue Certificate of Inspection to charging stations;

(c) Provide segregated lanes for light 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 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.

(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.

(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 30th 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.

(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

(c) In coordination with the DOE, establish guidelines for the accurate characterization, disposal, and handling of wastes involving EVs, charging stations and related equipment, parts and components, and batteries.

(a) Industrial and commercial companies such as cargo logistics companies, food delivery companies, tour agencies, hotels, power utilities, and water utilities;

(b) Public 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".

(a) Comply withe 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 all applicable permits and licenses 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 commercial use charging stations on EV users.

(a) Provide the necessary power requirement for the establishment and operation of charging stations consistent with its DPP;

(b) Prepare the charging station infrastructure development plan and incorporate the same in its DPP; and

(c) Comply with Section 26 of Republic Act No. 9136 as implemented by ERC'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.

(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. 266, 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:

In addition, the DTI, through the BOI, shall recommend an EV incentive strategy to the Fiscal Incentives Review Board 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:

The DTI, through the BOI, shall establish the application 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 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 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 XIII 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.

(a) For EV users:

(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 technology transfer agreement, subject to the guidelines that shall be issued by the DOLE, the Professional Regulatory Commission, and the DTI.