House to tackle energy efficiency and conservation bills

The House committee on energy chaired by Rep. Lord Allan Jay Q. Velasco (Lone District, Marinduque) has approved the creation of a technical working group (TWG) that will prioritize and consolidate all energy efficiency and conservation (EEC) measures aimed at ensuring sufficiency and stability of the country’s energy supply.

“Energy efficiency and conservation had been declared a priority by the Legislative-Executive Development Advisory Council (LEDAC). The country being a signatory to the Paris Climate Change Agreement of 2016 is duty-bound to pass a law on EEC. We hope that we can discuss about alternatives and come up with viable solutions in addressing the energy requirement of our industries, businesses and households through these energy efficiency and conservation measures,” said Velasco as he opened the floor for deliberations.

In explaining the difference between the two, Velasco said energy conservation is simply turning off unused appliances in the house to minimize the consumption of energy. Whereas, energy efficiency is the use of available modern technology that uses less energy to produce the same output of power according to him.

During the 16th Congress, Velasco said the energy committee devoted hearings and lengthy discussions in the TWG on EEC bills. But due to lack of material time, the committee was not able to file a committee report.

Rep. Reynaldo V. Umali (2nd District, Oriental Mindoro), author of House Bill 1220 and chairman of the energy committee during the 16th Congress, agreed with Velasco that the energy panel was able to come up with a consolidated bill in the past Congress but deferred to the wisdom of the chairman on the need to further study the various bills filed.

Umali’s HB 1220 is the proposed “An Act Institutionalizing Energy Efficiency And Conservation, Enhancing the Efficient Use of Energy, Granting Incentives to Energy Efficiency and Conservation Projects.”

Umali recalled how EEC practices were able to avert the projected energy crisis during the summer of 2015, wherein the Department of Energy’s anticipated consumption was way above what was actually consumed, sparing the country from predicted rotating brownouts.

Rep. Rodel M. Batocabe (Party-list, Ako-Bicol) said his House Bill 812 has the same objective as the other EEC measures, except that it will give government and private establishments the freedom and necessary leeway to adopt their own energy conservation policies.

Batocabe’s HB 812 is titled “An Act Requiring All Government and Non-Government Offices and Establishments to Adopt Policies For Energy Conservation And Efficient Energy Utilization Measures.”

Velasco said these proposals, along with similar EEC bills filed by Reps. Eric L. Olivarez (HB 182) and Henedina R. Abad (HB 2388), and Deputy Speaker Gloria Macapagal-Arroyo (HB 1527), will be consolidated in the TWG which will be headed by Umali and with Reps. Olivarez and Abad as co-chairmen.

The bills are entitled : HB 182 or “An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use Of Energy, Granting Incentives to Energy Efficiency And Conservation Projects”; HB 2388 or “An Act Institutionalizing Energy Efficiency and Conservation, Promotion of Renewable Energy For Energy Security, Providing Guidelines and Granting Incentives to Energy Efficiency And Conservation Projects”; and HB 1527 or “An Act Establishing An Inter-Agency Energy Conservation Committee to Deploy Cost Effective Energy Conservation Measures And Technologies.”

Director Patrick Aquino of the DOE Energy Utilization and Management Bureau said the DOE is one with Congress in advocating for the EEC measures and agrees with Umali on their importance. He said this is why they have come up with several initiatives of their own, including an information campaign promoting efficient energy use among the public.

Department of Finance (DOF) Supervising Tax Specialist Miriam Tasarra said the DOF supports the intent of the proposals, but expressed reservations over the granting of additional fiscal incentives because of existing laws already covering such, namely the Renewable Energy Act (RA9513) and the Omnibus Investments Code of 1987 (EO226).

Director Nestor Arcansalin of the Board of Investment’s Resource-based Industries Service (RBIS) enumerated the coverage of EO226 which they feel might conflict with the tax incentive provisions of the proposed measures. But he agreed on the importance of the EEC measures and even discussed the Department of Trade and Industry’s own energy efficiency program.

Batocabe observed that the DOF’s opposition to the fiscal incentive provisions of various EEC bills is the common reason why many proposed measures are “pending and languishing” in the House committee on ways and means. He urged the DOF to do its “patriotic duty” and consider these bills for its benefit to the companies and individual consumers who would eventually pay less on electricity bills.

Umali said granting incentives will encourage more industry players, especially in the industry’s infancy stage, and that giving better business conditions to the renewable energy sector will result in more investments. He said more players mean more businesses, and more businesses mean more revenues for the government.

“Let me urge the DOF to do its homework by giving us the figures, rather than just opposing any task incentive measures without giving specifics,” Umali said.

Rep. Orestes T. Salon (Party-list, Agri) underscored the behavioral aspect of conservation and suggested concerned offices to intensify their information dissemination campaign to develop a culture of conservation on the populace. Batocabe expressly supported Salon’s position.

Rep. Mohamad Khalid Q. Dimaporo (1st District, Lanao del Norte) put forth several points which need to be addressed in the TWG, such as the budgetary requirement of the DOE to accommodate the additional task of compliance monitoring, and the Department of Interior and Local Government’s capability to be energy efficient, among others.

Philippine Energy Efficiency Alliance, Inc. (PE2) President Alexander Ablaza expressed their group’s wholehearted support for the “swift passage and harmonization of the proposed measures.” He gave some observations and suggestions to the committee, including collaboration between the government and the private sector and easing up of existing laws to accommodate this partnership.

Ablaza also noted that for every peso of foregone revenue in incentivizing investments in energy efficiency technology, additional savings will become net earnings of private enterprises which will increase the tax base, thereby translating to higher tax revenue for the government.

Other agencies and non-government organizations (NGOs) present which expressed full support for the bills were: the Commission on Audit (COA) which said the bills will benefit the public, but funding source needs to be identified and procurement should be in accordance with existing laws; the Technical Education and Skills Development Authority (TESDA) which said the bills will mitigate the effect of climate change; the Department of Science and Technology (DOST) which agreed that incentives will attract more investments; the Philippine Rural Electric Cooperatives Association (Philreca) which stated that it will lead to the lowering of electricity prices; the Manila Electric Company (Meralco) which shared its own conservation and efficiency initiatives; and the National Grid Corporation of the Philippines (NGCP) and the National Transmission Commission (Transco).

Members of the committee requested for a briefer on the DOE’s energy conservation plan which they will use in the Joint Congressional Power Commission (JCPC). Velasco gave a week for the others to submit their position papers which will be included in the deliberations of the TWG. / CM