Policy, purpose, and core design
- The State policy is to ensure the quality, reliability, and security of energy at reasonable cost by ensuring timely supply-demand matching.
- The State policy is to attract new power projects by improving the ease of doing business and reducing high transaction costs caused by extensive requisites for proponents.
- The State policy is to ensure transparency and accountability in approving power generation, transmission, and distribution projects.
- The State policy is to deliver efficient and effective public service by:
- eliminating duplication, redundancy, and overlapping mandates in documentary submission through an online platform that enables agencies to coordinate and share information; and
- providing a paperless and electronic single gateway that allows proponents to access required information, submit requirements, and monitor approval progress.
Coverage and who must participate
- The Act applies to all new power generation, transmission, and distribution projects throughout the country.
- The Act applies to all departments, bureaus, offices, agencies, GOCCs, LGUs, and other entities involved in the permitting process of such projects.
- The Act covers applications requiring permits and/or certifications necessary for, or related to new power generation, transmission, or distribution projects.
Express definitions and key terms
- Action means a decision on an application limited to approval or disapproval by a concerned government bureau, office, agency, GOCC, LGU, or other permitting entity.
- EVOSS means an online system enabling coordinated submission and synchronous processing of required data and information, with a single decision-making portal for actions on EVOSS-linked permits/certifications.
- Permit or certification means a written document authorizing specified activities in a specified area or industry for a specified period, involving specified goods and/or services required by law, rules, and regulations.
- Permitting process includes the procedure to put up a power generation, transmission, or distribution project covering:
- acquisition of an operating contract or service contract,
- pre-development, and
- construction (including the date of commercial operations),
- together with the required documentary requirements and fees,
- and it excludes the operational phase.
- Mother agency means the department having jurisdiction over bureaus, offices, agencies, and GOCCs assigned to it by law under the Administrative Code of 1987.
- Proponent means an individual or duly recognized juridical entity engaged or desiring to engage in the Philippines through a power generation, transmission, or distribution project.
- System operator and market operator mean the entities responsible for grid operation and spot market operation under Republic Act No. 9136.
- Government agency has the meaning in Executive Order No. 292 (Administrative Code of 1987).
EVOSS creation and operating powers
- EVOSS is established under the supervision of the Department of Energy (DOE).
- The DOE must operate and maintain an effective information technology infrastructure system for EVOSS, updated regularly, consistent with the Act.
- EVOSS recognizes the legal effect, validity, and enforceability of electronic documents submitted for permits and/or certifications linked to covered power projects.
- EVOSS uses an online payment system for all fees imposed for EVOSS-linked permits and/or certifications.
- EVOSS provides proponents a secure, accessible paperless system to:
- obtain lists of all electronic documentary requirements, corresponding fees, and permitting process per project and per phase;
- prepare, submit, process, and receive actions on submitted electronic requirements;
- monitor and inquire on application status, identify the responsible bureau/office/agency/individual, and ascertain action or inaction;
- calculate, pay, and settle applicable fees electronically; and
- submit complaints on inaction on submitted electronic documents.
- EVOSS provides interoperable functionality for government entities involved in permitting, including:
- a unified and streamlined permitting process,
- uniform templates for electronic documentary requirements,
- compliance with mandated processing time stated in the Act or imposed by the EVOSS Steering Committee, whichever is shorter,
- updating and monitoring of electronic requirements,
- determining the bureau/office/agency/GOCC/LGU/entity responsible in an ongoing application and its status,
- and other processing-system aspects.
- EVOSS operates as a one hundred percent (100%) virtual storage and rules-driven integrated shared service among participating government entities.
- EVOSS must use a technology and operations management software platform enabling participating agencies to build processes and forms within a strict timeframe using published standards.
EVOSS Steering Committee structure and functions
- The EVOSS Steering Committee exists only for two (2) years from the effectivity of the Act.
- The Committee composition includes:
- Office of the President as Chairperson,
- DOE Secretary as Vice-Chairperson,
- DA, DAR, DENR, DILG, DICT, ERC Chairperson, NCIP Chairperson,
- NWRB Executive Director,
- market operator head/chairperson,
- system operator head/chairperson,
- and one (1) non-voting representative each from power generation, transmission, and distribution sectors and end users (nominated by the sector and chosen by DOE).
- The Committee members may designate permanent representatives knowledgeable in the mother agency’s role, requirements, processes, and EVOSS-related internal processes.
- Attached bureaus/offices/agencies participation is a prerequisite to the mother agency’s membership in the EVOSS Steering Committee.
- The Committee may invite bureau/agency heads and other persons as resource persons during meetings.
Committee chair, vice-chair, and secretariat roles
- The Chairperson must convene the Committee within two (2) months from effectivity, upon consultation with DOE.
- The Chairperson provides leadership, promotes collaboration and consensus-building, and decides when consensus cannot be reached.
- The Chairperson sets meeting schedule and agenda upon consultation with the Vice-Chairperson and the Secretariat, and presides over meetings.
- The Chairperson ensures key issues are deliberated and resolved timely.
- The Chairperson reviews and approves acts recommending inclusion or removal of mother agencies and entities in the EVOSS Steering Committee:
- removal is allowed for redundancy or lack of express legal mandate;
- inclusion is allowed only if supported by an express legal mandate;
- inclusion is limited so attached bureaus/offices/agencies and GOCC participation is limited to its mother agency.
- The Chairperson initiates disciplinary action under Section 17, except disciplinary actions involving the market operator and system operator, which are determined and initiated by the ERC.
- The Vice-Chairperson must, within one (1) month from effectivity, identify involved entities in each permitting phase and submit the list to the Chairperson.
- The Vice-Chairperson presides in the Chairperson’s absence, prepares EVOSS bidding documents, acts as Procuring Entity for EVOSS, supervises EVOSS, invests in needed hardware/software, equips DOE personnel, and provides training/capacity building.
- The Vice-Chairperson submits regular reports to the Committee and recommends potential expansion of platform use to other energy licensing processes.
- The EVOSS Steering Committee Secretariat is the Investment Promotion Office (IPO) of DOE.
- The Secretariat assists in scheduling/agenda, provides administrative and technical support, supplies accurate and timely documents/reports, and performs delegated functions.
Steering Committee operational duties
- Within three (3) months from effectivity, the Committee must create a detailed process flow for each permitting phase and each type of power project, reflecting:
- documentary requirements of participating government entities, and
- internal process flow across mother agency and attached entities, including approving individuals and the maximum number of days for action release, consistent with the Act’s timeframes (or the Committee-imposed shorter timeframes).
- Within six (6) months from effectivity, the Committee must streamline the detailed process flow by:
- creating unified electronic document forms replacing existing requirements,
- removing duplications and redundancies in required documents, and
- creating simplified internal flows so applications with complete electronic documents are resolved within the Act’s timeframes counted from submission of complete documentary requirements.
- Timeframes for LGUs and NCIP are governed by Sections 14 and 15, respectively.
- Failure by any involved bureau/office/agency/GOCC/LGU/entity to release action on applications with complete supporting documents within prescribed timeframes is deemed approval.
- The Committee must review the timeframes stated in the Act and impose a new timeframe that shall not be longer than the Act’s timeframe.
- The Committee must ensure linkage between an online payment system and the streamlined process flow.
- The Committee must develop EVOSS developer terms of reference through public bidding under DOE’s Bids and Awards Committee.
- The Committee must determine a reasonable processing fee for proponents using EVOSS.
- The Committee must meet regularly until EVOSS operationalization, which must not be later than one (1) year from effectivity.
- The Committee must conduct bi-annual activities upon operationalization to:
- monitor and assess EVOSS performance,
- identify congestion points and mechanisms to address them,
- receive and resolve complaints from officials and proponents,
- convey updated agency requirements/processes,
- identify redundant requirements not expressly mandated by law and recommend removal to the Chairperson and concerned mother agency,
- identify redundant requirements expressly mandated by law and recommend to the JCPC,
- and prepare the annual report to JCPC.
- Upon dissolution of the EVOSS Steering Committee, DOE is tasked to accomplish the enumeration above.
- The Committee must act on recommendations to expand EVOSS to other energy licensing processes.
Member duties and compliance obligations
- Each EVOSS Steering Committee member must actively participate and cooperate for immediate operationalization.
- Each member must, within six (6) months from effectivity, issue an internal order or circular streamlining its internal permitting process (including attached agencies, bureaus/offices at national and local levels and GOCCs) to comply with timeframes in Sections 13 to 16, or as provided by the Committee.
- Each member must continually review internal process flows to increase efficiency and reduce processing time.
- Each member must assign a designated person/office/bureau to manage EVOSS accounts to ensure proper monitoring and updating of electronic documents before the agency.
- Each member must create an internal committee for handling permitting if necessary.
EVOSS mandatory timeframe rules
- Mother agencies must ensure that all actions on applications before them and their attached bureaus/offices/agencies (national and local) and GOCCs are released within the timeframes stated.
- The timeframes are counted from submission of complete documentary requirements.
- DOE and all its attached bureaus/offices/agencies and GOCCs: sixty (60) calendar days.
- DAR and all its attached bureaus/offices/agencies and GOCCs: seventy-five (75) calendar days.
- DA and all its attached bureaus/offices/agencies and GOCCs: sixty (60) calendar days.
- DENR and all its attached bureaus/offices/agencies and GOCCs: one hundred twenty (120) calendar days, excluding the NWRB.
- ERC: sixty (60) calendar days to issue an action on applications, and two hundred seventy (270) calendar days for all quasi-judicial cases from submission of a valid application.
- System operator: one hundred fifty (150) calendar days.
- NWRB: sixty (60) calendar days.
- Market operator: fifteen (15) calendar days.
- Department of Transportation and all its attached bureaus/offices/agencies and GOCCs: thirty (30) calendar days.
- Philippine National Police: fifteen (15) calendar days.
- Department of Public Works and Highways and all its attached bureaus/offices/agencies and GOCCs: thirty (30) calendar days.
- Philippine Nuclear Research Institute: fifteen (15) calendar days.
- All other mother agencies and their attached bureaus/offices/agencies and GOCCs not expressly stated: fifteen (15) calendar days.
- Failure to release action within the prescribed timeframes deems approval.
- Deemed-approval does not apply to DENR and ERC actions on applications by fossil fuel-based technologies such as coal, natural gas, and oil.
Local government and indigenous peoples rules
- LGU actions on applications with complete supporting documents must be resolved within fifteen (15) calendar days for barangays, fifteen (15) calendar days for cities or municipalities, and fifteen (15) days for provinces.
- The EVOSS Steering Committee may impose a shorter time frame for LGU resolution if expedient and feasible.
- LGU failure to act within the given period deems approval by the LGU.
- LGU denial must be on valid grounds and must be fully explained in writing.
- LGU denials may be appealed to:
- the LGU having supervision over the disapproving LGU, or
- for highly urbanized and independent cities, to the DILG.
- Conflicts among LGUs are resolved through remedies under Republic Act No. 7160 (Local Government Code of 1991).
- NCIP/ICC/IP actions on applications must be released within:
- ten (10) calendar days for a Certificate of Non-Overlap, and
- one hundred and five (105) calendar days for Free, Prior, and Informed Consent/Certification Pre-Condition.
- The EVOSS Steering Committee may impose a shorter resolution time frame for NCIP actions if expedient and feasible.
- NCIP denial must be on the specified grounds and must be fully explained in writing to be released to the proponent within fifteen (15) calendar days from community validation of the Resolution of Non-Consent.
- A Resolution of Non-Consent must be based solely and exclusively on the violation of the right to ownership.
- If NCIP fails to issue a Certificate of Non-Consent within the specified period, the application is deemed approved.
- If NCIP fails to issue the Certification Pre-Condition or a Resolution of Non-Consent within the specified period, the power generation, transmission, and distribution projects are deemed approved.
- For Free, Prior, and Informed Consent/Certification Pre-Condition, the NCIP must give notice to the ICC/IP upon the start of the one hundred five (105) day period.
- The Free, Prior, and Informed Consent/Certification Pre-Condition must be accompanied by an understanding between the proponent and ICC/IP on the economic terms of any contractual agreement.
- Denial must be accompanied by the written explanation within the stated period.
- Appeals follow remedies under Section 67 of Republic Act No. 8371 (Indigenous Peoples Rights Act of 1997).
Delegated powers and provisional approvals
- The DOE may issue provisional approval, permits, and/or certifications related to EVOSS applications before the Board of Investments, Department of Justice, and Department of Labor and Employment.
- Provisional actions must be released within fifteen (15) calendar days from submission of complete documentary requirements.
- Provisional approvals/permits/certifications are valid and binding unless revoked by the concerned agencies upon finding noncompliance with laws, rules, and regulations during post-audit.
Administrative offenses and confidentiality
- A willful refusal to participate in EVOSS is an administrative offense.
- Willful acts that delay EVOSS operationalization are administrative offenses.
- Failure to comply with mandated timeframes under the Act or imposed by the EVOSS Steering Committee is an administrative offense.
- Tampering with EVOSS or any of its components is an administrative offense.
- No information or aspect of a power-project proponent’s submitted document may be divulged or released to anyone other than an authorized person or agency.
- Any divulged or released document by an authorized person or agency is subject to the Freedom of Information manual of each concerned agency.
Penalties and enforcement
- A government official or employee guilty of EVOSS refusal or delay under Section 17(a) and (b) is penalized as follows:
- First offense: thirty (30) days suspension without pay;
- Second offense: three (3) months suspension without pay;
- Third offense: dismissal and perpetual disqualification from public service.
- A government official or employee guilty of EVOSS timeframe noncompliance under Section 17(c) is penalized as follows:
- First offense: thirty (30) days suspension without pay and mandatory attendance in a Values Orientation Program;
- Second offense: three (3) months suspension without pay;
- Third offense: dismissal and perpetual disqualification from public service and forfeiture of retirement benefits.
- A government official or employee guilty of EVOSS tampering under Section 17(d) suffers dismissal and perpetual disqualification from public service.
- A government official or employee guilty of violating EVOSS confidentiality under Section 18 suffers dismissal and perpetual disqualification from public service.
- For violations by the system operator and market operator under Section 17(a), (b), and (c), the ERC imposes a fine of PHP 100,000.00 for every day of delay.
- Administrative jurisdiction over violations is vested in the Civil Service Commission or the DILG, consistent with applicable laws and issuances.
- Administrative liability under the Act does not bar filing of criminal, civil, or other related charges under existing laws arising from the same act or omission.
IPO role, appropriations, oversight, reports
- DOE designates the IPO staffing complement and organizational structure through the DOE Secretary, in consultation with the Department of Budget and Management and consistent with civil service rules.
- Expansion of IPO funding is taken from current DOE appropriations and thereafter included in the annual General Appropriations Act.
- The IPO must:
- fulfill its duties as Secretariat of the EVOSS Steering Committee,
- develop and implement EVOSS consistent with the Act and Committee instructions, and
- perform necessary functions for effective implementation.
- Initial implementation appropriation: PHP 100,000,000.00, charged against DOE’s current-year appropriations, and later amounts needed are included in subsequent annual General Appropriations Act.
- The JCPC created under Republic Act No. 9136 exercises oversight powers over implementation upon effectivity.
- The EVOSS Steering Committee must ensure proper implementation and submit annual reports on program implementation and fund utilization to the JCPC.
- JCPC must conduct a systematic evaluation upon recommendation of the EVOSS Steering Committee, or within five (5) years after effectivity, to determine remedial legislation.
Implementing rules, separability, and repeal
- DOE must promulgate EVOSS implementing rules and regulations within sixty (60) days from effectivity, in consultation with relevant government agencies and industry stakeholders.
- A separability clause preserves remaining valid provisions if any portion is declared unconstitutional or invalid.
- A repealing clause removes, amends, or modifies laws, decrees, orders, rules, and regulations, or parts thereof, inconsistent with the Act.