QuestionsQuestions (Republic Act No. 11285)
The short title is the “Energy Efficiency and Conservation Act.” The declared policy includes institutionalizing energy efficiency and conservation as a national way of life, promoting efficient renewable energy technologies, reinforcing related laws through a comprehensive approach, and ensuring a market-driven approach to energy efficiency, conservation, sufficiency, and sustainability.
RA 11285 establishes a framework for introducing and institutionalizing fundamental policies on energy efficiency and conservation, including promotion of efficient energy use, increased utilization of energy efficiency and renewable energy technologies, and the delineation of responsibilities among government agencies and private entities.
A designated establishment is an entity in sectors identified by DOE as energy intensive industries based on annual energy consumption. Type 1: 500,000 kWh to 4,000,000 kWh (previous year). Type 2: more than 4,000,000 kWh (previous year). DOE may periodically review and adjust thresholds.
CECO is a certified professional responsible for supervision and maintenance of facilities of Type 1 establishments and energy consumption management-related functions. CEM is a licensed engineer chosen by Type 2 establishments to plan, lead, manage, coordinate, monitor, and evaluate implementation of sustainable energy management.
A BCCR is a periodic report submitted to DOE by Type 1 and Type 2 designated establishments, distribution utilities, and the transmission utility regarding the National Energy Efficiency and Conservation Plan, including energy consumption, energy loss, and status of energy use. DOE specifies its comprehensive contents.
The NEECP is the national comprehensive framework with targets, strategies, and monitoring/evaluation for energy efficiency and conservation. DOE spearheads creation and update of the NEECP in coordination with pertinent agencies, LGUs, and private corporations/organizations.
DOE is the lead agency responsible for planning, formulation, development, implementation, enforcement, and monitoring of energy management policies and related plans. It also includes powers such as developing NEECP/NEECD, enforcing MEP and energy labeling, supporting LGUs on LEECPs, coordinating with NEECCO, running awareness campaigns, providing Congress with annual reports, and imposing reasonable certification/accreditation fees.
EECO is the Energy Efficiency and Conservation Office established in each LGU to oversee and monitor implementation of the LGU’s LEECP. LEECP is a collaborative multi-stakeholder comprehensive framework for local energy efficiency and conservation with targets, feasible strategies, and regular monitoring, aligned with RA 11285 and the NEECP.
They must integrate an energy management system policy (ISO 50001 or similar), set up programs/targets, keep monthly energy consumption records, improve specific energy consumption according to DOE reduction targets, submit an annual BCCR (under the term used; ECCR is referenced in Section 20 with due date), conduct energy audits once every three years, employ CECO (Type 1) or CEM (Type 2), and notify DOE of appointment/separation within 10 working days.
They manage energy consumption of facilities/equipment/devices; administer implementation/improvement of energy efficiency measures; conduct regular energy audits; manage energy monitoring and control; prepare periodic energy consumption and energy conservation program reports; and fulfill other responsibilities stated in the Act.
They must submit an annual energy consumption report to DOE and integrate an energy management system policy based on ISO 50001 or a similar framework identified by DOE. External audit/quality control assessment is voluntary.
DOE may visit designated establishments to inspect energy-consuming facilities, evaluate energy management systems/procedures, verify energy monitoring records and reports, and identify improvement areas. Inspections are within office hours and in the presence of an authorized representative of the establishment.
MEP for commercial, industrial, and transport sectors is developed by DOE with stakeholder consultation and guided by a cost-benefit analysis with NEDA assistance within one year from effectivity, and adopted/enforced as part of the NEECP. DOE also develops energy performance testing guidelines for covered energy-consuming products and requires manufacturers/importers/distributors/retailers to comply and to sell/lease/import only products meeting MEP with proper energy labeling.
Prohibited acts include failing to comply with energy labeling; removing/defacing/altering energy labels before the first sale/lease; providing false/misleading energy information; selling/leasing/importing non-MEP-compliant products; failing/refusing to appoint a CECO or CEM; willfully refusing DOE on-site inspection; failing/refusing to submit required reports; failing to comply with DOE orders in enforcement; and violating IRR/codes/guidelines.
Section 32 allows DOE to impose fines from PHP 10,000 to PHP 1,000,000 for violations, without prejudice to penalties by other agencies and without prejudice to criminal liability. Section 33 provides criminal penalties for willful violations by responsible officers/employees: imprisonment of 1 to 5 years, or fines from PHP 100,000 to PHP 100,000,000 or twice the costs avoided, whichever is higher (or both), plus liability for those who aid/abet, and directors/officers in corporations.
The DOE shall promulgate the IRR within six (6) months from the effectivity of the Act, in consultation with concerned agencies/entities, LGUs, and stakeholders.