Chapter 2: Energy Conservation

REPUBLIC ACT No. 11285

An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects

Short Title

This Act shall be known as the "Energy Efficiency and Conservation Act"

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;

Certified Energy Conservation Officer (CECO)

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;

Certified Energy Manager (CEM)

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

Designated establishment

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;

Distribution utility

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";

Department of Energy (DOE)

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;

Energy

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;

Energy Audit

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;

Energy auditor

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;

Energy Conservation

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;

Energy Consumption and Conservation Report (ECCR)

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;

Energy efficiency

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;

Energy Efficiency and. Conservation Office (EECO)

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;

Energy Efficiency and Conservation Officer (EEC Officer)

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;

Energy efficiency projects

refers to all individuals and entities which consume energy to include households, industrial and commercial customers, power plants, distribution utilities, and transmission utilities;

Energy end user

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;

Energy labeling

efers 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;

Energy management

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;

Energy Service Company (ESCO)

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;

Government energy efficiency projects

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;

Government Energy Management Program (GEMP)

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.

Local Energy Efficiency and Conservation Plan (LEECP)

refer to the government units created through Republic Act No. 7160, otherwise known as the "Local Government Code of 1991";

Local government units (LGUs)

efers 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;

Minimum Energy Performance (MEP)

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;

National Energy Efficiency and Conservation Coordinating Officer (NEECCO)

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;

National Energy Efficiency and. Conservation Database (NEECD)

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;

National Energy Efficiency and Conservation Plan (NEECP)

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;

Philippine Qualifications Framework (PQF)

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;

Board of Investments (BOI)

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;

Climate Change Commission (CCC)

shall recognize government energy efficiency projects, as defined under this Act, as goods, services, and consultancy services, consistent with government accounting and auditing rules;

Commission on Audit (COA)

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;

Commission on Higher Education (CHED)

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;

Department of Budget and Management (DBM)

shall promote energy efficiency and conservation practices in its curricula;

Department of Education (DepEd)

shall, in coordination with the DOE and other concerned agencies, draw up appropriate mechanisms to implement the fiscal incentives under this Act;

Department of Finance (DOF)

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";

Department of Environment and Natural Resources (DENR)

shall, in coordination with the DOE, be responsible in ensuring compliance of all LGUs in implementing the provisions of this Act;

Department of the Interior and Local Government (DILG)

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;

Department of Public Works and Highways (DPWH)

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;

Department of Science and Technology (DOST)

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;

Department of Trade and Industry (DTI)

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. 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;

Department of Transportation (DOTr)

shall incorporate energy efficiency as a factor in evaluating the performance of GOCCs;

Governance Commission for GOCCs (GCG)

shall set aside lending funds for energy efficiency projects at concessional rates of interest to attract private sector investments. 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;

Government Financial Institutions (GFIs)

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;

Insurance Commission (IC)

shall recognize the role of energy efficiency and conservation in national development;

National Economic and Development Authority (NEDA)

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;

National Competitiveness Council (NCC) or its Successor Entity

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

Philippine Statistics Authority (PSA)

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.

shall implement skills training, assessment, and certification programs for mechanics, technicians, installers, and operators of energy efficient, as well as renewable energy systems.

Technical Education and Skills Development Authority (TESDA)

shall establish their respective EECOs headed by an EEC Officer as defined in Section 4(1) and (m) of this Act. The LGUs through their respective EECOs and planning and development offices, with the assistance of the DOE and in coordination with the DILG, shall develop and implement their respective LEE CP and incorporate these in their local development plans.

Role of LGUs

shall use every available energy resource efficiently and promote the development and utilization of new and alternative energy efficient technologies and systems, including renewable energy technologies and systems across sectors in compliance with the declared policies of this Act.

Role of Energy End Users

hereby created to evaluate and approve government energy efficiency projects, as defined under this Act, and to provide strategic direction in the implementation of the GEMP.

Inter-Agency Energy Efficiency and Conservation Committee (IAEECC)

DOE to issue Certification to BOI on Energy Efficiency Projects of private entities in accordance with EO 226 otherwise known as the Omnibus Investment Code of 1987.

Fiscal Incentives

Approved Date

April 12, 2019