PE2, BOI and DOE meet on incentives IRR under EE&C Act

  • PE2, BOI and DOE officials discuss draft implementing rules and regulations related to fiscal incentives granted under the EE&C Act (PE2 Photos)
    PE2, BOI and DOE officials discuss draft implementing rules and regulations related to fiscal incentives granted under the EE&C Act (PE2 Photos)

16 July 2019, Taguig City – Officials of the Philippine Energy Efficiency Alliance (PE2), Board of Investments (BOI) and the Department of Energy (DOE) met earlier today for a small group discussion on the draft Implementing Rules and Regulations (IRR) on fiscal incentives to be granted under Republic Act 11285, otherwise known as the Energy Efficiency and Conservation (EE&C) Act. The small group discussion is one of several preparatory meetings that DOE is organizing in preparation for the Inter-Agency and Stakeholder Consultations of the Draft IRR of the EE&C Act scheduled for 30 July 2019.

PE2 sought clear processing and approval timelines for both DOE and BOI similar to those adopted by the Anti-Red Tape Act (ARTA) and Executive Order 30, which limit processing durations to 20 days and 30 days, respectively. PE2 explained that, unlike larger energy generation projects, typical energy efficiency projects do not normally have the complexities such as land use conversion or environmental impacts, and should therefore be much easier for government agencies to process approvals.

PE2 also sought long-term predictability for third-party investors, especially those raising long-term equity to support a portfolio of multiple energy efficiency projects in the Philippines. The Alliance emphasized that investment flows to this new asset class called energy efficiency will depend on how consistent incentive guidelines remain through the first ten years of enforcement of the EE&C law.

BOI asked DOE to support a proposal to limit government processing to 30 days, and to process applications for incentives on a presumptive-approval basis. BOI announced that, while they have internally proposed to expand the energy efficiency guidelines under the 2017 Investment Priorities Plan, with income tax holiday incentives prorated against energy savings measured at either project boundary or facility-level, and granting pioneer status to all energy efficiency projects, they still need to propose the expanded guidelines for approval by their Board of Governors. BOI indicated its preference to keep the specific guidelines outside the draft IRR which DOE is finalizing.

BOI also sought a legal remedy that would include the agency as a permanent, voting member of the Inter-Agency Energy Efficiency and Conservation Committee.

DOE captured the outputs of the discussion, which it would use to prepare the draft IRR for the next consultations on 30 July.

PE2 was represented by its president Alexander Ablaza, treasurer Theresa Acedillo-Lapuz and member services and communications manager Luigi Eusebio.

BOI was represented by Governor Napoleon E. Concepcion, Atty Allan G. Revote, and Senior Energy Investment Specialist Dexter S. Pajarillo, and staff from other BOI units.

DOE’s Energy Efficiency and Conservation Division was led by its Division Chief Artemio P. Habitan.

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Philippine Energy Efficiency Alliance Inc. (PE2), is a non-stock, non-profit organization of energy efficiency market stakeholders.

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Republic Act 11285

R.A. 11285 - An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects

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The Philippine Energy Efficiency Alliance, Inc. (PE2) is a non-stock, non-profit organization of energy efficiency market stakeholders.

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  • Philippine Energy Efficiency Alliance, Inc. (PE2)
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