Republic Act No. 11697: Electric Vehicle Industry Act

Eighteenth Congress Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-sixth day of July, two thousand twenty one.

[ REPUBLIC ACT NO. 11697, April 15, 2022 ]

AN ACT PROVIDING FOR THE DEVELOPMENT OF THE ELECTRIC VEHICLE INDUSTRY

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Title

This Act shall be known as the "Electric Vehicle Industry Act."

CHAPTER 1 GENERAL PROVISIONS

Section 2. Declaration of Policy

It is hereby declared the policy of the State to:

(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.

Section 3. Scope and Application

This Act shall apply to the manufacture, assembyler, importation, construction, installation, maintenance, trade and utilization, research and development, and regulation of electric vehicles, charging stations and related equipment, parts and components, batteries, and related support infrastructure.

Section 4. Definition of Terms

As used in this Act, the following terms shall be defined as stated below:

(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 stationrefers 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 facilitiesrefer to establishment which are allowed to supply power to the grid using electric vehicles; (d)Certificate of Inspectionrefers 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 feerefers 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 stationsrefers 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 providerrefers 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 stationsrefer to the utilization of a charging stations by the general public or a defined group of individuals; (i)Distribution systemrefers 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 industryrefers 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 routesrefer 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)Importerrefers 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 transitionrefers to globally recognized principles that should guide the transition to environmentally sustainable economies and societies; (q)Light electric vehiclesrefer 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 assemblerrefers 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)Micromobilityrefers to alternative modes of transportation which are provided by light electric vehicles; (t)Own-use charging stationsrefer to the utilization of a charging station exclusively by an individual; (u)Plug-in hybrid-electric vehiclerefers to an HEV with rechargeable energy storage system that can be charged from an external electric energy sources; (v)Private buildings and establishmentsrefer 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 establishmentsrefer 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 stationsrefer to charging stations which source electricity from the grid and also from on-site installed generation facilities. CHAPTER II ROLE OF GOVERNMENT AGENCIES

Section 5. Government Regulations

All government regulations related to the EV industry shall be formulated to facilitate the creation of an enabling environment for competitive, equitable, and non-discriminatory private sector participation, with preference for indigenous technologies, to attain the long-term goal of energy security, energy sufficiency, and stable energy prices.

Section 6

Comprehensive Roadmap for Electric Vehicle Industry (CREVI).The CREVI refers to a national development plan for the EV industry with an annual work plan to accelerate the development, commercialization, and utilization of EVs in the country comprised of the following four (4) components;

(a)EVs and charging stations component which includes:

(1)Development of standards and specification of EVs and charging stations, (2) Industry promotion of EVs, (3) Designation of dedicated parking slots for EVs, and (4) Construction or installation of charging stations in dedicated parking slots and dedicated spaces, (b) Manufacturing component which includes:

(1)Promotion and development of the local manufacturing of the EV industry, and (2) Manufacturing standards for EVs, batteries and facilities including recycling facilities, parts and components, and charging stations and related equipment, (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.

Section 7. Role of the Department of Energy

The DOE shall be the primary agency tasked with the promotion of the adoption of EVs and the development of charging stations and related equipment. Towards this end, the DOE shall:

(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 30thof 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 30thof 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 30thof 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.

Section 8. Role of the Energy Regulatory Commission

In addition to its functions under Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001", and other existing laws, the ERC shall:

(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.

Section 9. Role of the Department of Transportation

The DOTr shall be the primary agency tasked with the development of EV demand generation, and the regulation and registration of EVs, as well as franchising of EVs used for public transportation. Towards this end, the DOTr shall:

(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.

Section 10. Role of the Department of Trade and Industry

The DTI shall be the primary agency tasked with the promotion and development of the ocal manufacturing of the EV industry. Towards this end, the DTI shall:

(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 30thof 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 30thof 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.

Section 11. Role of Local Government Units

In addition to its functions under existing laws, LGUs shall:

(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 30thof 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.

Section 12. Role of the Department of Public Works and Highways

In addition to its functions under existing laws, the DPWH shall establish guidelines on the following:

(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.

Section 13. Role of the Department of Science and Technology

In addition to its functions under existing laws, the DOST shall:

(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 30thof 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.

Section 14. Role of the Department of Environment and Natural Resources

In addition to its functions under existing laws, the DENR shall:

(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.

Section 15. Role of the National Economic and Development Authority

In recognition of the importance of the role of the EV industry in national development, the NEDA shall include the CREVI in the Philippine Development Plan.

CHAPTER III DEMAND GENERATION AND INDUSTRY DEVELOPMENT

Section 16. Mandatory EV Share in Corporate and Government Entities

The following entities shall ensure that at least five percent (5%) of their fleet, whether owned or leased, shall be EVs within the time frame indicated in the CREVI:

(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". The CREVI shall provide a timeline for the gradual increase of such percentage until the entire fleet of the covered entities will all be EVs. In the implementation of this provision, the availability and sufficiency of energy supply and EV charging stations as well as other conditions affecting the optimize utilization of EVs shall be taken into consideration.

Section 17

Dedicated Parking Slots for Electric Vehicles in Private and Public Buildings and Establishments. -Private and public buildings and establishments constructed after the effectivity of this Act and pursuant to the National Building Code of the Philippines shall designate dedicated parking slots for the exclusive use of EVs to include light electric vehicles:Provided,That the number of dedicated parking slots shall be proportional to the total number of parking slots within the building or establishment as provided in the CREVI:Provided, further,That if there are twenty (20) or more parking slots, there should be at least five percent (5%) dedicated parking slots for EVs of the total number of parking slots within the building or establishment:Provided, finally,That existing private and public buildings and establishments shall comply with the foregoing requirements within the time frame indicated in the CREVI.

No permit shall be issued by the LGU for the construction or renovation of a building or establishment unless this section has been complied with.

Section 18. Construction or Installation of Charging Stations in Dedicated Parking Slots

The CREVI shall determine when dedicated parking slots shall be installed with a charging stations either by the owner of the building or establishment or a charging station service provider:Provided,That the owner of the private or public building or establishment shall have the first priority to install, operate, or maintain a charging station in its premises.

The charging stations installed in private and public buildings and establishments may be own-use charging stations or commercial use charging stations:Provided,That the CREVI shall identify specific public buildings and establishments to be installed with commercial use charging stations for the general public.

Section 19. Construction or Installation of Charging Stations in Gasoline Stations

Select gasoline stations identified in the CREVI shall designate dedicated spaces for the installation of commercial use charging stations for the general public. The CREVi shall determine when dedicated spaces in gasoline stations shall be installed with a commercial use charging station either by the owner of the gasoline station or a charging station service provider:Provided,That the owner of the gasoline station shall have the first priority to install, operate, or maintain a commercial use charging station in its premises. A gasoline station, if required under the CREVI to have a designated space for c charging station, shall not be issued a construction, operation, or compliance permit by the DOE unless the owner shows that there is ample space for the construction or installation of charging stations within its premises.

Section 20. Use of Charging Stations

The construction, installation, utilization, operation, and maintenance of charging stations shall comply with all rules, regulations, and standards issued pursuant to this Act.

Own-use charging stations shall not be allowed to impose and collect charging fees. Commercial use charging stations may be allowed to impose and collect charging fees, which shall be unbundled.

Section 21. Permits

The time frame for the procedure of all permits and licenses issued pursuant to this Act shall be governed by Republic Act No. 11234, otherwise known as the "Energy Virtual One-Stop Shop Act:. Towards this end, the EVOSS Steering Committee shall include the Anti-Red Tape Authority among its members.

Section 22. Duties and Responsibilities of Owners or Operators of Charging Stations

An owner or operator of a charging station shall have the following duties and responsibilities:

(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.

Section 23. Duties and Responsibilities of Distribution Utilities

A DU shall have the following duties and responsibilities:

(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. CHAPTER IV INCENTIVES

Section 24. Fiscal Incentives

(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:

(1)Manufacture and assembly of EVs, charging stations, batteries, and parts and components; and (2) The establishment and operations of charging stations and other related support infrastructure such as research and development centers, training centers, testing centers, and waste treatment facilities. 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:

(1)Narrow the cost gap between the EVs and traditional motor vehicles and enable the shift of the local traditional motor vehicle industry to EVs;

(2)Provide time-bound, targeted, performance-based, and transparent fiscal and non-fiscal support in order to attract EV and EV parts manufacturing, particularly electronic parts and other strategic components, batteries, charging stations, and the establishment of testing facilities; and (3) Set local production targets to be achieved within eight (8) years from the promulgation of the EV incentive strategy, subject to extension as determined by the DTI. 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.

Section 25. Non-Fiscal Incentives

The following non-fiscal incentives shall remain in force for eight (8) years from the effectivity of this Act:

(a)For EV users:

(1)Priority registration and renewal of registration, and issuance of a special type of vehicle plate by LTO;

(2)Exemption from the mandatory unified vehicular volume reduction program, number-coding scheme, or other similar schemes implemented by the Metropolitan Manila Development Authority, other similar agencies, and LGUs;

(3)Expeditious processing by the LTFRB of applications for franchise to operate, including its renewal, for PUV operators that are exclusively utilizing EVs; and (4) Availment of TESDA Training Programs on EV assembly, use, maintenance, and repair for its employees;

(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.

Section 26. Financial Assistance

Government financial institutions and other financial institutions, in accordance with and to the extent allowed by the enabling provisions of their respective charters or applicable laws, are encouraged to provide concessional financial packages for entities engaged in the activities mentioned in Section 24 of this Act, and preferential interest rates and payment scheme on consumer loans for the acquisition of EVs and charging stations.

The Bangko Sentral ng Pilipinas shall encourage banks to lend a certain percentage of their portfolio to EV, charging stations, and battery manufacturers, assemblers, and end users:Provided,That financing packages fr EV fleets shall be prioritized and the procedure shall be streamlined.

CHAPTER V FINAL PROVISIONS

Section 27. Established of Dedicated Offices

The DOE, DOTr, and DTI shall establish dedicated offices for the effective implementation of this Act. The organizational structure and staffing complement shall be determined by the Secretaries of the DOE, DOTr, and DTI, in consultation with the Department of Budget and Management, and in accordance with existing civil service rules and regulations.

The budgetary requirements necessary for the establishment of the dedicated offices shall be taken from the current appropriations of each agency concerned. Thereafter, the funding for the dedicated offices shall be included in the annual General Appropriations Act.

Section 28. Penalties

A fine ranging from a minimum of Fifty thousand pesos (P50,000.00) to a maximum of Five hundred thousand pesos (P500,000.00), and may include suspension or revocation of permits issued, if applicable, shall be imposed upon any reason, both natural and juridical, who violates Section 6, 16, 17, 18, 19, 20, 21, 22, and 23 of this Act and all rules, regulations, and standards promulgated pursuant to Sections 7, 8, 9, 10, 11, 12, 13, 14, and 15 of this Act:Provided,That this is without prejudice to the penalties provided under existing laws, rules, and regulations prescribed by other concerned agencies. The DOE, DOTr, and DPWH shall, in coordination with the DTI and the DILG, issue appropriate rules and regulations on the imposition of these fines and penalties.

Section 29. Congressional Oversight

The Joint Congressional Energy Commission (JCEC), created under Republic Act No. 9136, as amended, shall exercise oversight powers over the implementation of this Act. The DOE, DOTr, DTI, and other relevant NGAs shall submit to CREVI and a report on the implementation of this Act to the JCEC not later than the 1stday of December of every year.

Section 30

Implementing Rules and Regulations (IRR). -The DOE together with the DOTr shall, in coordination with the DTI, and in consultation with other relevant NGAs and public and private stakeholders, issue the IRR within one hundred twenty (120) days upon the effectivity of this Act.

Failure of the relevant government agencies to promulgate the IRR within the specified period shall subject to the heads of these government agencies to administrative penalties under applicable civil service laws.

Should the IRR contain provisions that are contrary to this Act, the heads of the government agencies responsible for such provision, when done in bad faith or with gross negligence, shall be held administratively liable.

Section 31. Separability Clause

If any portion or provision of this Act is declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect.

Section 32. Repealing Clause

Any law, presidential decree or issuance, executive order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

Section 33. Effectivity

This Act shall take effect fifteen (15) days following its complete publication in theOfficial Gazetteor in a newspaper of general circulation.

Approved,

| (SGD.)VICENTE C. SOTTO III President of the Senate | (SGD.)LORD ALLAN JAY Q. VELASCO Speaker of the House of Representatives |

This Act which is a consolidation of Senate Bill No. 1382 and House Bill No. 10213 was passed by the Senate of the Philippines and the House of Representatives on December 16, 2021 and January 17, 2022, respectively.

MYRA MARIE D. VILLARICA

Secretary of the Senate

MARK LLANDRO L. MENDOZA

Secretary General House of Representatives

Approved: Lapsed into law on APR 15 2022 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.

RODRIGO ROA DUTERTE

President of the Philippines

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.

In plain language