QuestionsQuestions (EXECUTIVE ORDER NO. 290)
EO 290 (Sec. 1) states the NGVPPT objectives are: (1) to enhance energy supply security in the transport sector through fuel diversification using indigenous natural gas; and (2) to use compressed natural gas (CNG) as a clean alternative fuel for transport.
EO 290 (Sec. 2) covers: (1) Gas Supply (indigenous gas like Malampaya and importation of LNG); (2) Infrastructure development (CNG refueling stations such as mother-daughter and/or on-line systems); (3) Market development (encouraging PUBs, PUJs, taxis and other PUVs); (4) Technology (OEM-NGV strongly recommended, then retrofit/conversion later); (5) Incentives and financial assistance; (6) Manpower development; (7) Standards and regulatory concerns (standards/codes of practice for integrity and safety); and (8) IEC (information/education/communication).
The Department of Energy (DOE) is designated as lead implementing agency (Sec. 3, consistent with EO No. 66 s. 2002). It leads implementation, develops an implementation plan and necessary guidelines, creates a CNG Masterplan in coordination with concerned agencies/stakeholders, and facilitates participants’ access to privileges and incentives.
The DENR through the Environmental Management Bureau (EMB) must fast-track ECC issuance for NGV facilities/refueling stations and formulate emission standards for CNG (Sec. 4).
DOF must create a pricing environment conducive to CNG use and formulate tax policies for the NGVPPT (Sec. 4). Specifically: (1) BIR must develop revenue regulations for time-bound tax incentives for CNG, NGVs and related facilities/infrastructure; (2) BOC must implement guidelines on reduced tariffs on NGVs, engines and related equipment/parts/components duly certified by DOE.
DOST must develop and promote locally manufactured NGV conversion kits/parts/components, develop training modules on conversion/operation/maintenance and refueling station O&M, and establish testing centers for NGV systems/components/equipment and related facilities together with DOE (Sec. 4).
BPS (under DTI) must establish Philippine National Standards for Natural Gas Utilization in the transport sector and certify safety of CNG fuel, NGVs, systems/components and related equipment/facilities (Sec. 4). BOI must enhance incentive packages for land transportation using CNG, conversion shops, terminals with refueling stations, and the manufacture/assembly of NGVs, and provide incentives to other NGV-related activities.
DOTC works with DOE to develop an implementation plan and promote NGVs via directives/orders for preferential/exclusive franchises and emission compliance (Sec. 4). LTO issues Certificates of Compliance (COC) with emission standards to NGVs, and LTFRB grants preferential/exclusive Certificates of Public Convenience (CPC) or franchises based on DOTC surveys.
DENR/EMB: fast-track ECC issuance for NGV facilities and refueling stations and formulate emission standards for CNG (Sec. 4). DILG/LTFRB: in EO 290 text, “Department of Interior and Local Government (LTFRB)” appears to be a drafting inconsistency; however, the assigned function is to formulate safety measures relative to NGV industry practices and apprehend violators of standards and safety rules/regulations (Sec. 4).
The Metro Manila Development Authority (MMDA) (Sec. 4) must provide regulatory/administrative support, introduce traffic schemes favoring NGVs to enhance their use in Metro Manila, and integrate CNG refueling station locations within its overall intermodal terminal program rationalization.
Examples from Sec. 5 include: (1) income tax holiday for pioneering projects qualifying under BOI’s Investments Priorities Plan; (2) 1% rate of duty on imported NGVs/NGV engines and related equipment/parts/components certified by DOE; (3) LTO issuance of Certificates of Compliance with Emissions Standards to NGVs; (4) preferential/exclusive franchises from LTFRB for NGVs on newly opened routes; (5) accelerated issuance by DENR of ECC; (6) affordable financing packages from GFIs; (7) attractive CNG prices discounting diesel; and others.
Sec. 6 provides for a pilot project to demonstrate and showcase initial operation of natural gas buses for public transport in Batangas–Manila and/or Metro Manila routes using indigenous natural gas from the MOGP in Batangas. Components include: (1) launching 100 OEM natural gas buses; (2) construction/operation of mother-daughter CNG refueling stations; (3) application/operationalization of newly designed incentives and financing packages; and (4) IEC campaigns.
EO 290 (Sec. 7) creates a NGVPPT Executive Forum as a regular and permanent body to provide effective leadership, coordination, and proper direction in implementing the NGVPPT.
Under Sec. 8, the Undersecretary of the Department of Energy chairs the Executive Forum; members are senior officials of co-implementing agencies. Representatives from the private sector may be invited to serve as members and/or resource participants to promote active private sector participation. Permanent alternates must be designated by the Chairperson and each member.
Sec. 9 provides that the Forum shall: (1) accelerate, integrate, and coordinate interagency activities including implementation of incentives/privileges and formulation of additional fiscal/non-fiscal incentives, financial packages, and standards; (2) formulate its own programs/plans/activities toward NGVPPT objectives; (3) monitor agency actions and recommend measures to enhance NGV industry competitiveness; and (4) develop internal rules and meet at least quarterly.
EO 290 (Sec. 10) states that technical and secretariat support to the Executive Forum shall be provided by the DOE.
Effectivity: Sec. 12 provides it takes effect immediately. Separability clause: Sec. 11 states that if any provision is declared unconstitutional with finality, the validity of the remaining provisions is not affected.