Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City
SITEENTH CON!RESS
Fi"st Re#ul$" Session
House %ill No& ''''
Introduced by Hon. ______________
EXPLANATORY NOTE
The Constitution, Article 2 Section 16 provides:
The State shall protect and advance the right of the people
to a balanced and healthful ecology in accord with the rhyth and
harony of nature!
In a study conducted by the "S Congress, it was found that:
1! #oes and coercial or industrial buildings in the "nited States consue
significant $uantities of energy, including energy for electricity and heating, the generation or
cobustion of which creates significant $uantities of greenhouse gas eissions%
2! In ost cases, energy efficiency is the ost cost&effective and rapidly
deployable strategy for reducing greenhouse gas eissions, energy deand, and the need for
long&distance transission of energy%
'! on&site renewable energy generation reduces greenhouse gas eissions,
deand on the electricity transission grid, and the need for long&distance transission
of energy%
(! any energy efficiency easures and on&site renewable energy generation
systes produce a net cost savings over the course of the useful life of the easures and
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systes, and often over a shorter tie frae, but the initial e)pense re$uired to purchase and
install the easures and systes is often a significant barrier to widespread investent in the
easures and systes%
*! financial products, financing progras, and other progras that reduce or
eliinate the need for the initial e)pense described in paragraph +(, can perit building
owners to invest in easures and systes that reduce total energy costs and reali-e net cost
savings at the tie of the installation of the easures and systes, defer capital e)penditure,
and enhance the value, cofort, and sustainability of the property of the owners!
The purpose of this Act is to establish a .reen /nergy for #oes and 0uildings
1rogra! Inspired by a siilar proposal in the "nited States, the 1rogra is designed to
encourage widespread deployent of energy efficiency and on&site renewable energy
technologies in hoes and other buildings throughout the 1hilippines by encouraging the
widespread availability of financial products and progras with attractive rates and ters that
significantly reduce or eliinate upfront e)penses thereby allowing building owners to
invest in energy efficiency easures and on&site renewable energy systes!
.reen energy is thought of in the conte)t of electricity generation, and is often used
interchangeably with the ters renewable energy and alternative energy! .reen energy
sources are called such because they are perceived to have lower carbon eissions and create
less pollution! Consuers, businesses, and organi-ations should be encouraged to purchase
green energy to support further developent, help reduce the environental ipacts of
conventional electricity generation, and increase their nation2s energy independence!
HON. _______________________
Representative, ____________________ Party List
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SITEENTH CON!RESS
Fi"st Re#ul$" Session
House %ill No& ''''
Introduced by Hon. ___________________
AN ACT
ESTABLISHING A GREEN ENERGY OR HO!ES AN" B#IL"INGS PROGRA!
IN THE "EPART!ENT O ENERGY TO PRO$I"E INANCIAL ASSISTANCE TO
PRO!OTE RESI"ENTIAL, CO!!ERCIAL, AN" IN"#STRIAL SCALE ENERGY
EICIENCY AN" ON%SITE RENE&ABLE TECHNOLOGIES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
S/CTI34 1! Short Title! 5 This Act shall be 6nown as the This Act ay be cited as the
7.reen /nergy for #oes and 0uildings Act of 281'!9
S/CTI34 2! Implementing gency! 5 The :epartent of /nergy shall ipleent the
provisions of this Act!
S/CTI34 '! "efinitions! 5
A! .;//4 /4/;.< 5 refers to sources of energy that are natural%
considered to be environentally friendly and non&polluting! These processes include
but are not liited to anaerobic digestion, geotheral power, wind power, sall&scale
hydropower, solar energy, bioass power, tidal power, and wave power!
0! C3ST 5 eans the onetary value of e)penditures for supplies, services,
labour, products, e$uipent and other ites purchased for use by a business or other
accounting entity!
C! :I;/CT =3A4 5 eans a loan by a lender to a custoer without the use of a
third party!
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:! =3A4 ."A;A4T// 5 eans a proise by a governent to assue a private
debt obligation if the borrower defaults!>
/! 1;3.;A?& eans the .reen /nergy for #oes and 0uildings 1rogra
established by section 6!
@! S/C;/TA;<& eans the Secretary of /nergy!
.! S/C";IT<& eans shares, participation or interests in a corporation or in a
coercial enterprise or profit&a6ing venture and evidenced by a certificate, contract,
instruent, whether written or electronic in character! It includes:
+a, Shares of stoc6, bonds, debentures, notes, evidence of indebtedness, asset&bac6ed
securities%
+b, Investent contracts, certificates of interest or participation in a profit sharing
agreeent, certificates of deposit for a future subscription%
+c, @ractional undivided interests in oil, gas or other ineral rights%
+d, :erivatives li6e options and warrants%
+e, Certificates of assignents, certificates of participation, trust certificates, voting trust
certificates or siilar instruents%
+f, 1roprietary or non proprietary ebership certificates incorporations% and
+g, 3ther instruents as ay in the future be deterined by the Securities and /)change
Coission!
S/CTI34 (! #reen $nergy for Homes and Buildings #oals!%
A! :evelopent of targets and goals
1! The Secretary shall develop and publish for review and coent in
the 3fficial .a-ette short, ediu, and long&ter goals +including nuerical
perforance targets at appropriate intervals to easure progress toward those
goals, for&&
+a, a iniu nuber of hoes to be retrofitted through energy
efficiency easures or to have on&site renewable energy systes
added%
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+b, a iniu nuber of other buildings, by type, to be retrofitted
through energy efficiency easures or to have on&site renewable
energy systes added% and
+c, the nuber of on&site solar energy, wind energy and geotheral
heat pup systes to be installed% and
2! as a result of those retrofits, additions, and installations&&
+a, the $uantity by which use of grid&supplied electricity, natural
gas, hoes heating oil, and other fuels will be reduced%
+b, the $uantity by which total fossil fuel dependence in the
buildings sector will be reduced%
+c, the $uantity by which greenhouse gases are eitted will be
reduced%
+d, the nuber of Aobs that will be created% and
+e, the estiated total energy cost savings for building owners!
0! The Secretary ay rely on reasonable estiates ade by originators of
financial products or sponsors of financing progras for trac6ing progress toward
eeting the goals established under this section instead of re$uiring building owners to
onitor and report on the progress!
S/CTI34 *! #reen $nergy for Homes and Buildings Program! &
A! /stablishent& There is established in the :epartent of /nergy a progra to
be 6nown as the 7.reen /nergy for #oes and 0uildings 1rogra9!
0! /ligibility Criteria&
1! I4 ./4/;A=& In adinistering the 1rogra, the Secretary shall
establish eligibility criteria for applicants for financial assistance under subsection
+C, who can offer financial products and progras consistent with the purposes of
this Act!
2! C;IT/;IA& Criteria for applicants shall&&
+a, ta6e into account&&
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+i, the nuber and type of buildings that can be served by
the applicant, the si-e of the potential ar6et, and the scope of the
progra +in ters of easures or technologies to be used,%
+ii, the ability of the applicant to successfully e)ecute the
proposed progra and aintain the perforance of the proposed
proAects and investents%
+iii, financial criteria, as applicable, including the ability of
the applicant to raise private capital or other sources of funds for
the proposed progra%
+iv, criteria that enable the Secretary to deterine sound
progra design, including 5
+I, an assurance of credible energy efficiency or
renewable energy generation perforance% and
+II, financial product or progra design that
effectively reduces barriers posed by traditional
financing progras
+b, encourage 5
+i, use of technologies that are either well&established or
new, but deonstrated to be reliable%
+ii, technical assistance in selecting and wor6ing with
vendors to provide energy efficiency easures or on&site
renewable energy generation systes%
'! :iverse 1ortfolio& In establishing criteria and selecting applicants to receive
financial assistance under subsection +C,, to the a)iu e)tent practicable, the
Secretary shall select a portfolio of investents that reaches a diversity of
building owners, including&&
a! individual hoeowners%
b! ultifaily apartent building owners%
c! condoiniu owners associations%
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d! coercial building owners, including ulti&tenant coercial
properties% and
e! industrial building owners!
C! @inancial Assistance 5
1! In general 5 @or applicants deterined to be eligible under criteria established
under subsection +0,, the Secretary ay provide financial assistance in the for
of direct loans, letters of credit, loan guarantees, insurance products, other credit
enhanceents or debt instruents +including securiti-ation or indirect credit
support,, or other financial products to proote the widespread deployent of,
and obili-e private sector support of credit and investent institutions
for, energy efficiency easures and on&site renewable energy generation systes
in buildings!
2! To the a)iu e)tent practicable and consistent with sound business
practices, the Secretary shall see6 to e)pedite reviews of applications for credit
support under this Act in order to counicate to applicants in a tiely anner
the li6elihood of support so that the applicants can see6 private capital in order to
receive final approval! In carrying this out, the Secretary shall consider using
clear guidelines that counicate to applicants what level of perforance on
eligibility criteria will ensure approval for credit support or resale!
S/CTI34 6! #eneral ccountability for the Program! &
A! 1eriodic ;eports 5 4ot later than one +1, year after the coenceent
of operation of the 1rogra and at least biannually thereafter, the
Secretary shall subit to the Coittee on /nergy of the Senate and
the Coittee on /nergy of the #ouse of ;epresentatives a report that
includes a description of the 1rogra in eeting the purpose and goals
established by or pursuant to this Act!
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0! Audits by the Coission on Audit 5 The progras, activities,
receipts, e)penditures, and financial transactions of the 1rogra shall
be subAect to audit by the Coission on Audit!
S/CTI34 B! ppropriations! 5 To carry out the provisions of this Act, an aount of @ifty
illion pesos +1*8,888,888!88, is hereby authori-ed to be appropriated fro the 4ational
Treasury! Thereafter, the aount necessary for the continuous operation of the progra shall be
included in the annual appropriations of the :epartent of /nergy!
S/CTI34 C! Separability Clause! 5 If any provision or part hereof, is held invalid or
unconstitutional, the reainder of the law or the provision not otherwise affected shall reain
valid and subsisting!
S/CTI34 D! Repealing Clause! 5 Any law, presidential decree or issuance, e)ecutive
order, letter of instruction, adinistrative order, rule or regulation contrary to or is inconsistent
with the provision of this Act is hereby repealed, odified, or aended accordingly!
S/CTI34 18! $ffectivity Clause! 5 This Act shall ta6e effect fifteen +1*, days after its
publication in at least two +2, newspapers of general circulation!
Approved,
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