Electric Vehicle Industry Development Act

Policy, purpose, and guiding principles

Section 2 declares State policy to ensure energy security and independence by reducing reliance on imported fuel for the transportation sector.
Section 2 requires an enabling environment for development of electric vehicles (including micromobility) as an attractive and feasible transportation mode to reduce dependence on fossil fuels.
Section 2 mandates support for innovation in clean, sustainable, and efficient energy to accelerate social progress by encouraging public and private use of low emission and other alternative energy technologies.
Section 2 directs protection of public health from hazards of pollution and the greenhouse effect.
Section 2 requires safeguarding and improving the integrity, reliability, and stability of the electric power grid by optimizing the location of energy sources relative to demand.
Section 2 promotes inclusive and sustainable industrialization consistent with the Philippine Development Plan and the country’s international obligations under the United Nations Sustainable Development Agenda.
Section 2 provides for generation of employment opportunities for the local skilled workforce.
Section 2 recognizes the role of LGUs as competent partners and calls for capacity-building support for LGUs.

Scope and key definitions

Section 3 applies to the manufacture, assembly, 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 defines Battery electric vehicle (BEV) as an electrically propelled vehicle with only a traction battery as the power source for vehicle propulsion.
Section 4 defines Battery swapping station as a facility allowing users to exchange a near-empty discharged battery with a fully charged battery.
Section 4 defines Centralized vehicle-to-grid facilities as establishments allowed to supply power to the grid using electric vehicles.
Section 4 defines Certificate of Inspection as a document issued by an LGU building official required for installation of power lines to certify completeness of installation of electrical wirings under Republic Act No. 6541 as revised by Presidential Decree No. 1096 (the National Building Code of the Philippines).
Section 4 defines Charging fee as the amount imposed on EV users for use of commercial-use charging stations, with components to be unbundled under DOE regulations.
Section 4 defines Charging stations as facilities with equipment to deliver electrical energy to electric vehicles or their battery, installed in an enclosure with special control functions and communications, and including battery swapping stations for purposes of the Act.
Section 4 defines Charging station service provider as a natural or juridical person, duly accredited by the DOE, who sells, constructs, installs, maintains, owns, or operates charging stations or components for a fee.
Section 4 defines Commercial use charging stations as utilization of charging stations by the general public or a defined group of individuals.
Section 4 defines Distribution system as wires and associated facilities belonging to a distribution utility between connection points from delivery points on transmission/subtransmission or generating plant connection to the end-user premises connection.
Section 4 defines Distribution utility (DU) as an electric cooperative, private corporation, or government-owned utility with a franchise/authority to operate a distribution system, including those whose franchise/authority covers economic zones.
Section 4 defines Electric vehicle (EV) as a vehicle with at least one (1) electric drive for propulsion, including BEVs, hybrid-electric vehicles (HEVs), light electric vehicles, and plug-in hybrid-electric vehicles.
Section 4 defines EV industry as 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.
Section 4 defines Green routes as public transportation routes identified and designated by provinces, cities, and municipalities and approved by DOTr to be exclusively traversed by electric public utility vehicles (PUVs).
Section 4 defines Hybrid-electric vehicle (HEV) as a vehicle with both a rechargeable energy storage system and a fueled power source for propulsion.
Section 4 defines Light electric vehicles as EVs such as electric scooters, electric bicycles, electric personal transport, and other similar vehicles weighing less than fifty kilograms (50 kg).
Section 4 defines Micromobility as alternative modes of transportation provided by light electric vehicles.
Section 4 defines Own-use charging stations as charging station utilization exclusively by an individual.
Section 4 defines Plug-in hybrid-electric vehicle as an HEV with a rechargeable energy storage system chargeable from external electric energy sources.
Section 4 defines Private buildings and establishments as residential, commercial, and industrial structures owned or leased by private natural or juridical persons, and for commercial and industrial structures, whose goods and services are available to the public.
Section 4 defines Public buildings and establishments as structures owned or leased by government departments/agencies/bureaus/offices, GOCCs, and LGUs.
Section 4 defines Self-generating charging stations as charging stations that source electricity from both the grid and on-site installed generation facilities.
Section 4 defines Importer, Manufacturer or assembler, and EV industry-related terminology used in the Act, including Battery swapping station and Certificate of Inspection.

Government roles and planning (CREVI)

Section 5 mandates that all government regulations related to the EV industry facilitate an enabling environment for competitive, equitable, and non-discriminatory private sector participation, with preference for indigenous technologies.
Section 6 establishes Comprehensive Roadmap for Electric Vehicle Industry (CREVI) as a national development plan with an annual work plan to accelerate development, commercialization, and utilization of EVs.
Section 6 provides CREVI has four components: (a) EVs and charging stations, (b) manufacturing, (c) research and development, and (d) human resource development.
Section 6(a) requires CREVI’s EVs and charging stations component to include: development of standards/specifications, industry promotion, designation of dedicated parking slots, and construction/installation of charging stations in dedicated parking slots and dedicated spaces.
Section 6(b) requires CREVI’s manufacturing component to include: promotion/development of local manufacturing and manufacturing standards for EVs, batteries and facilities including recycling facilities, parts/components, and charging stations and related equipment.
Section 6(c) includes a research and development component.
Section 6(d) includes a human resource development component for needed personnel skills and capacity-building.
Section 6 requires CREVI to be incorporated in the Philippine Energy Plan and the National Transport Policy.

DOE, ERC, and other agencies

Section 7 makes the Department of Energy (DOE) the primary agency for promoting EV adoption and developing charging stations and related equipment.
Section 7(a) requires DOE to promulgate uniform and streamlined rules, regulations, and standards on use, operations, and maintenance of charging stations and related equipment, including accreditation of charging station service providers and requirements imposed by DUs.
Section 7(b) requires DOE to convene a technical working group within two (2) months from effectivity, chaired by DOE and composed of DOE, DOTr, DTI, DOST, DENR, DPWH, DILG, and NEDA, for harmonized and streamlined EV industry standards across CREVI components.
Section 7(c) requires DOE to develop and update the EV and charging stations component of CREVI in coordination with DOTr and in consultation with LGUs and other NGAs, completing it not later than May 30 of every year.
Section 7(d) requires the DOE to make CREVI publicly available on its website not later than September 30 of every year.
Section 7(f) requires DOE to accredit charging station service providers and publish on its website an annual inventory of all accredited service providers and a list of all commercial-use charging stations nationwide.
Section 7(g) requires DOE to require DUs to submit charging infrastructure development plans as part of their Distribution Development Plans (DDPs) not later than August 30 every year.
Section 7(h) requires DOE to enforce compliance with charging station installation requirements under Section 18 and Section 19.
Section 7(i) requires DOE to enforce compliance with unbundling of charging fees by commercial-use charging stations.
Section 7(k) requires consolidation and centralization of EV and charging station data from ERC, DTI, DOTr, DENR, LTO, LTFRB, LGUs, and other NGAs for public access.
Section 7(l) authorizes DOE to perform analogous and necessary/incidental acts to accomplish the Act’s policy objectives.
Section 8 grants the Energy Regulatory Commission (ERC) additional EV-specific authority in addition to its functions under Republic Act No. 9136.
Section 8(a) requires ERC to regulate rates charged by DUs on all charging stations, considering utilization, promotion of efficiency, ERC rate-setting methodology under Section 43 of Republic Act No. 9136, and the impact on DU demand profile and distribution system.
Section 8(b) requires ERC to promulgate uniform and streamlined rules and requirements for self-generating charging stations and centralized vehicle-to-grid facilities.
Section 9 makes the Department of Transportation (DOTr) the primary agency for EV demand generation and regulation/registration of EVs and franchising EVs used for public transportation.
Section 9(b) provides that light electric vehicles for exclusive private use are not required to register with DOTr and attached agencies.
Section 9(f) mandates DOTr to mandate inclusion of green routes in LTFRB route plans.
Section 9(g) requires DOTr to incorporate EVs in the PUV Modernization Program.
Section 9(h) requires DOTr to develop a just-transition program for gradual phase-in of electric PUVs.
Section 9(i) requires DOTr to conduct capacity-building activities for affected PUV operators and drivers with DOE and DTI.
Section 10 makes the Department of Trade and Industry (DTI) the primary agency for promotion and development of local EV manufacturing.
Section 10(a) requires DTI’s Bureau of Philippine Standards to formulate and regularly review relevant Philippine National Standards for EVs to ensure consumer protection and trade facilitation, including safety, quality, and environmental advances.
Section 10(b) requires DTI to regulate quality and safety of parts/components using relevant standards for consumer protection.
Section 10(c) requires DTI to submit the manufacturing component of CREVI to DOE not later than May 30 every year.
Section 10(d) requires DTI to submit the human resource development component of CREVI to DOE not later than May 30 every year.
Section 10(e) requires DTI, through BOI, to develop the EV incentive strategy under Section 24(a).
Section 10(f) requires DTI, in coordination with DENR, to develop a program for adoption of manufacturing and recycling standards for EV batteries and facilities.
Section 11 requires LGUs to include green routes in Local Public Transport Route Plans, issue Certificate of Inspection to charging stations, provide segregated lanes for light electric vehicles on major roads (integrable with bicycle lanes), submit lists of commercial-use charging stations not later than January 30 every year, issue building permits consistent with DPWH guidelines, and ensure compliance of public and private buildings and establishments with Section 18.
Section 12 requires DPWH to establish guidelines on construction/installation of charging stations in buildings and issuance of permits for construction/renovation pursuant to Section 17.
Section 13 requires DOST to submit the research and development component to DOE not later than May 30 every year and provide technical and financial support for localized transport studies by accredited state universities and colleges at local levels.
Section 14 requires DENR to promulgate recycling/disposal rules consistent with Republic Act No. 6969, integrate EVs into air pollution management consistent with Republic Act No. 8749, and establish guidelines for accurate characterization, disposal, and handling of wastes involving EV-related equipment and batteries.
Section 15 requires NEDA to include CREVI in the Philippine Development Plan.

Demand generation and charging infrastructure obligations

Section 16 requires covered entities to ensure at least five percent (5%) of their fleet (owned or leased) are EVs within the timeline indicated in CREVI.
Section 16 covers: (a) industrial and commercial companies such as cargo logistics, food delivery, 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.
Section 16 provides that electrification of government fleets shall be considered a government energy efficiency project under Republic Act No. 11285.
Section 16 requires CREVI to provide a timeline for gradual increase of the covered EV share until the entire fleet becomes EVs, considering availability and sufficiency of energy supply, EV charging stations, and other conditions for optimized utilization of EVs.
Section 17 requires private and public buildings and establishments constructed after effectivity and pursuant to the National Building Code to designate dedicated parking slots exclusively for EVs, including light electric vehicles.
Section 17 requires dedicated EV parking slots proportional to total parking slots per CREVI.
Section 17 requires that where there are twenty (20) or more parking slots, there must be at least five percent (5%) dedicated EV parking slots of total parking slots.
Section 17 requires existing private and public buildings and establishments to comply within the time frame indicated in CREVI.
Section 17 prohibits LGUs from issuing permits for construction or renovation of a building or establishment unless Section 17 is complied with.
Section 18 provides CREVI will determine when dedicated parking slots must be installed with charging stations, either by the building/establishment owner or a charging station service provider.
Section 18 grants the building/establishment owner first priority to install, operate, or maintain a charging station in its premises.
Section 18 allows charging stations in private and public buildings and establishments to be own-use or commercial-use.
Section 18 requires CREVI to identify specific public buildings and establishments to be installed with commercial-use charging stations for the general public.
Section 19 requires select gasoline stations identified in CREVI to designate dedicated spaces for installation of commercial-use charging stations for the general public.
Section 19 grants the gasoline station owner first priority to install, operate, or maintain a commercial-use charging station in its premises.
Section 19 provides that when CREVI requires a gasoline station to have a designated space for charging stations, DOE construction, operation, or compliance permits shall not be issued unless the owner shows ample space within its premises.
Section 20 requires all charging station construction, installation, utilization, operation, and maintenance to comply with rules, regulations, and standards issued under the Act.
Section 20 prohibits own-use charging stations from imposing and collecting charging fees.
Section 20 allows commercial-use charging stations to impose and collect charging fees, subject to unbundling.
Section 21 governs permits and licenses under the Act by Republic Act No. 11234 (Energy Virtual One-Stop Shop Act) and requires the EVOSS Steering Committee to include the Anti-Red Tape Authority.

Charging station owners and DU responsibilities

Section 22 requires owners or operators of charging stations to comply with applicable rules, requirements, and standards, including national standards for EV power output rating and safety distance for construction/installation, and all applicable permits and licenses of relevant NGAs and LGUs.
Section 22 requires charging station owners/operators to pay the DU for electricity consumption of the charging station when applicable.
Section 22 requires unbundling of charging fees imposed by commercial-use charging stations.
Section 22 requires owners/operators to regularly submit to DOE an unbundled structure of charging fees imposed on EV users.
Section 23 requires a DU to provide necessary power requirements for charging station establishment and operation consistent with its DPP.
Section 23 requires a DU to prepare a charging station infrastructure development plan and incorporate it in its DPP.
Section 23(c) requires DUs to comply with Section 26 of Republic Act No. 9136 on business separation and unbundling if the DU engages in the business of a charging station service provider.

EV incentives and discounts

Section 24(a) subjects EV and charging-related manufacturing activities to an evaluation process for inclusion in the strategic investment priority plan and possible entitlement to incentives under Executive Order No. 266 as amended by Republic Act No. 11534, and Title XIII of the National Internal Revenue Code of 1997 as amended by Republic Act No. 11534, and other applicable laws.
Section 24(a)(1) includes manufacture and assembly of EVs, charging stations, batteries, and parts and components.
Section 24(a)(2) includes establishment and operations of charging stations and other support infrastructure such as research and development centers, training centers, testing centers, and waste treatment facilities.
Section 24(a) directs DTI through BOI to recommend an EV incentive strategy to the Fiscal Incentives Review Board for approval as part of the CREVI manufacturing component.
Section 24(a) requires the incentive strategy to: narrow the cost gap between EVs and traditional motor vehicles and enable shift of local traditional motor vehicle industry to EVs; provide time-bound, targeted, performance-based, and transparent fiscal and non-fiscal support; and set local production targets within eight (8) years from promulgation of the incentive strategy, subject to extension by DTI.
Section 24(a) requires BOI to establish application and selection processes imposing terms and conditions needed to promote objectives, and prohibits registered participants from registering the same activity or product under any other incentive program.
Section 24(b) provides that importation of completely built units of EVs is entitled to incentives under Republic Act No. 10963 (TRAIN).
Section 24(b) authorizes the Department of Finance, upon recommendation of DTI, to suspend the exemption for imported electric jeepneys and electric tricycles to protect local manufacturers.
Section 24(b) exempts importation of completely built units of charging stations from payment of duties for eight (8) years from effectivity of the Act.
Section 24(b) subjects importation of capital equipment and components used in manufacture/assembly of EVs and in construction/installation of charging stations to evaluation for inclusion in strategic investment priority plan and possible incentives for the applicable period under Executive Order No. 266 as amended and Title XIII as amended and other applicable laws.
Section 24(c) provides a thirty percent (30%) discount for BEVs and fifteen percent (15%) discount for HEVs from the motor vehicle user’s charge under Republic Act No. 8794 and from vehicle registration and inspection fees for eight (8) years from effectivity of the Act.
Section 25 provides non-fiscal incentives remain in force for eight (8) years from effectivity, including:
- For EV users: priority registration and renewal of registration and issuance of a special type of vehicle plate by LTO; exemption from mandatory unified vehicular volume reduction program, number-coding schemes, or similar schemes; expeditious LTFRB processing of franchise applications for PUV operators exclusively using EVs; and TESDA Training Programs availability on EV assembly, use, maintenance, and repair for employees.
- For EV manufacturers and importers: expeditious Bureau of Customs processing of importation of parts/components for EV manufacture and assembly.
- For EV manufacturers: allowance for expert foreign nationals employment under a form of technology transfer agreement, subject to guidelines to be issued by DOLE, the Professional Regulatory Commission, and DTI.
Section 26 encourages government and financial institutions to provide concessional financial packages and preferential interest rates and payment schemes for acquisition of EVs and charging stations, within the limits of their enabling provisions or applicable laws.
Section 26 directs the Bangko Sentral ng Pilipinas to encourage banks to lend a certain percentage of their portfolio to EV and charging station/battery manufacturers, assemblers, and end users, with priority to EV fleet financing packages and streamlined procedures.

Dedicated offices, penalties, oversight, and implementation

Section 27 requires the DOE, DOTr, and DTI to establish dedicated offices for effective implementation, with organizational structure and staffing complement determined by the respective Secretaries in consultation with the Department of Budget and Management and consistent with civil service rules.
Section 27 provides that initial budgetary requirements for dedicated offices shall come from current appropriations of each agency, and funding thereafter shall be included in the annual General Appropriations Act.
Section 28 imposes penalties for violations of Section 6, 16, 17, 18, 19, 20, 21, 22, and 23 and for violations of rules, regulations, and standards promulgated under Sections 7, 8, 9, 10, 11, 12, 13, 14, and 15.
Section 28 provides the penalty is a fine ranging from a minimum of PHP 50,000 to a maximum of PHP 500,000, and may include suspension or revocation of permits issued, if applicable.
Section 28 states penalties are without prejudice to penalties under existing laws and rules/regulations of other agencies.
Section 28 requires DOE, DOTr, and DPWH, in coordination with DTI and DILG, to issue appropriate rules and regulations on imposition of fines and penalties.
Section 29 gives the Joint Congressional Energy Commission (JCEC) oversight powers over implementation of the Act.
Section 29 requires DOE, DOTr, DTI, and other relevant NGAs to submit to CREVI and report to JCEC on implementation not later than December 1 of every year.
Section 30 requires the DOE and DOTr, with coordination with DTI and consultation with other relevant NGAs and public/private stakeholders, to issue the Implementing Rules and Regulations (IRR) within one hundred twenty (120) days from effectivity.
Section 30 provides that failure to promulgate IRR within the 120-day period subjects the heads of the agencies to administrative penalties under applicable civil service laws.
Section 30 provides that if the IRR contains provisions contrary to the Act, the responsible agency heads are administratively liable if the inclusion was done in bad faith or with gross negligence.

Separability and repeal rules

Section 31 establishes a separability rule: if any portion of the Act is declared unconstitutional, the remainder remains in force.
Section 32 repeals or modifies laws, presidential decrees or issuances, executive orders, letters of instruction, rules, or regulations inconsistent with the Act.