The House of Representatives has recently endorsed for Senate approval a measure seeking to encourage the efficient utilization of energy while providing tax incentives for energy-efficient projects.
This, after the lower chamber approved on third and final reading of House Bill 8629, or the proposed “Energy Efficiency and Conservation Act.”
The bill, principally authored by House Speaker Gloria Macapagal-Arroyo, aims to push for the judicious conservation of energy resources to minimize their adverse impacts on the environment.
Under the bill, energy-efficient projects shall be included in the Strategic Investments Priorities Plan of the government 15 years from the approval of the measure. These programs shall also be entitled to receive a certificate from the Fiscal Incentives Review Board.
The project proponents shall be exempted from income taxes levied by the national government for the first six years of their commercial operations. Additional investments in these projects shall allow further income tax exemption, the bill said.
Under the measure, the Joint Congressional Power Commission, which was established under Section 62 of Republic Act 9136 or the Electric Power Industry Reform Act of 2001, or Epira, shall exercise oversight functions over the implementation of the measure upon its effectivity.
The bill seeks to mandate the Department of Energy (DOE) to lead the development, and implementation of plans and programs to secure the stability and sufficiency of energy supply in the country, which shall cushion the impact of the high price of imported fuels to local markets.
It said the DOE shall update the development of the National Energy Efficiency and Conservation Plan and monitor its implementation, and initiate and maintain collaborative efforts with the business sector to ensure compliance.
It added the Department of Health shall also support local government units in planning, promoting, and implementing the programs and in preparing their Local Energy Efficiency and Conservation Plans and develop a national awareness and advocacy campaign.
The bill mandates the DOE to provide annual reports to Congress on the status of the implementation, among others.
In addition, establishments implementing these programs shall also be entitled to the following incentives: (a) awards and recognition for energy efficiency and conservation best practices, innovation and successful energy-efficient projects and products, and (b) technical assistance from government agencies in the development and promotion of energy-efficient technologies.
The DOE and the Technical Education and Skills Development Authority shall develop and implement a system of certification and assessment for energy conservation officers and energy managers to raise the professional standards of those engaged in energy management. Qualified individuals shall earn the title of Certified Energy Efficiency and Conservation Officer.
The bill also directs the DOE to strengthen the existing Energy Service Company Accreditation System for the market to have technically and financially capable entities that can provide assistance in the delivery of energy efficiency-related projects.
The DOE shall require all manufacturers, importers, distributors and retailers of energy-consuming goods to subject their products to an energy performance testing in accordance with the Minimum Energy Performance guidelines to be issued by the DOE to ensure the effective implementation of energy efficiency and conservation.
The DOE shall also be mandated to develop and enforce a Mandatory Energy Efficiency Rating and Labeling for energy-consuming products to help consumers in choosing energy efficient appliances and raise public awareness on energy conservation.
In addition, the DOE, with the assistance of the Energy Regulatory Commission, shall also pursue a Demand Side Management Program for the electric power industry to reduce energy consumption through effective load management.
The DOE shall be authorized to impose penalties for any violation of the provisions of the proposed Act, including its implementing rules and regulations, with fines ranging from P10,000 to P10 million.
