Pasig Green Building Ordice

Legal basis and policy

The ordinance is enacted under the mandate of the Local Government Code of 1991 requiring Local Government Units to promote health and safety and enhance the right of people to a balanced ecology (Section 2).
The ordinance is directed toward improving the stability and efficiency of buildings in the use of natural resources (Section 3).
The ordinance aims to contribute to global efforts to reduce Green House Gas (GHC) emission and minimize buildings’ impact on health and the environment through a Green Building Program (Section 3).
The ordinance links climate change adaptation with actions to improve community livability and public health, foster resilient natural systems, and support job creation (Preamble).

Definitions and covered concepts

“Green Building Program” is the practice of adopting sustainable features and measures in the design, construction, and operation of buildings (Section 3).
“Green Building Program” is defined as a holistic approach addressing building designs and construction management, proper land use and promotion of diversity, efficient water and energy use and management, healthy indoor air quality, proper management of emissions, effective solid waste management, promotion of alternative mode of transportation, and heritage conservation and promotion (Article III under the term GREEN BUILDING PROGRAM).
“Green Building” is a building whose construction and lifetime operation assure the healthiest possible environment while using land, water, energy, and resources in the most efficient and least disruptive manner (Article III under the term GREEN BUILDING).
“BERDE Rating Certification System” is a tool to measure the environmental performance of buildings in the country, serving as a guideline and a mechanism for recognizing environmental stewardship, and removing the burden of time and resources from the city in developing and maintaining a new standard system (Article III under the term The Building for Ecologically Responsive Design Excellence (BERDE) Rating Certification System).
“Philippine Green Building Council (PHILGBC)” is a non-stock, non-profit organization that promotes sharing green practices and is organized to serve as a single voice for holistic and market-based green building practices and to develop the BERDE system; it is an Emerging Member of WorldGBC and a member of Asia Pacific Network, and is also an organization of IISBE and a global partner of GLOBE Alliance (Article III under the term Philippine Green Building Council (PHILGBC)).
“Global Warming” is the increase in the average temperature of the earth’s atmosphere, especially a sustained increase sufficient to cause climatic change (Article III under the term Global Warming).
“Green Materials” include all construction materials, hardware and fittings, roughins, and finishing certified as environment-friendly, and practicing optimization of their use such that construction (Article III under the term Green Materials).
“Carbon Emission” is the release of carbon into the atmosphere (Article III under the term Carbon Emission).
“CENRO” is the City Environment and Natural Resources Office (Article III under the term CENRO).
“OBO” is the Office of the Building Official (Article III under the term OBO).
“PUD” means a planned unit development: a large, integrated development following a comprehensive plan, located on a single tract of land or on two or more tracts of land separated only by a street or other right-of-way (Article III under the term PUD).
“Tax Credit” is an amount a taxpayer can subtract from the tax they owe to the government; its value depends on what the credit is provided for, and certain types of tax credits are granted for specific locations, classifications, or industries (Article III under the term TAX CREDIT).

Green infrastructure coverage rules

The ordinance applies to all buildings within the City of Pasig (Section 4).
Old Buildings are voluntary for residential units with at least 50 square meters (Section 4).
Old Buildings are voluntary for public and private buildings with a total floor area of 10,000 square meters or less (Section 4).
Old Buildings are mandatory for areas more than 10,000 square meters, including Planned Unit Development (PUD) areas, and compliance is granted a two (2) years grace period (Section 4).
New Buildings are mandatory for PUD areas (Section 4).
New Buildings are mandatory for private buildings with a total floor area greater than 10,000 square meters (Section 4).
Exemptions apply to heritage or cultural buildings and post-disaster shelters and structures (Section 4).

BERDE system adoption and targets

The ordinance adopts the BERDE Rating Certification System of the Philippine Green Building Council (PHILGBC), recognized by the Department of Energy, as a component in Pasig City’s green building requirements (Section 5).
All buildings, both government and private, may obtain a 1-Star BERDE Certification if they comply with the BERDE criteria and requirements regardless of area (Section 6).
The city shall encourage at least 1-Star BERDE Certification for all buildings with a total floor area of 10,000 square of any occupancy type within PUDs (Section 6).
The ordinance states that emerging parts of cities are more responsive to higher building standards and become green building focal areas (Section 6).

Certification process and recognized schemes

Applicants must secure BERDE Certifications from a third-party certifying body duly accredited by PHILGBC, pending accreditation of the city’s Green Building Division (Section 7).
The ordinance recognizes BERDE assessment and certification schemes for BERDE for New Construction, BERDE for Retrofits and Renovations, and BERDE for Operations (Section 7).

Governance: Pasig Green Building Board

A Pasig City Green Building Board (PCGB Board) is created to provide guidance for the development of necessary or appropriate rules and regulations to implement the city’s Green Building Ordinance (Section 8).
The PCGB Board provides support for effective implementation of the voluntary program (Section 8).
The PCGB Board recommends appropriate incentives for voluntary program participants (Section 8).
The PCGB Board recommends appropriate performance levels, standards, and thresholds for the programs (Section 8).
The PCGB Board resolves issues arising from program implementation (Section 8).
The PCGB Board reviews and evaluates the effectiveness of the policies, standards, and procedures identified (Section 8).
The PCGB Board provides policy recommendations for continuous improvement of the program (Section 8).
The PCGB Board must meet and convene at least once a month (Section 8).

Board composition and Green Building Division

The PCGB Board is chaired by the City Mayor (Section 9).
The PCGB Board’s vice-chairpersons include the SP Chairman (Committee of Environmental Protection) and the SP Chairman (Committee of Public Works and Infrastructure) (Section 9).
The board includes the City Building Official, City Environment and Natural Resource Officer, City DRRMO, City Planning and Development Officer, and City Engineer (Section 9).
The board includes the City Assessor (Section 9).
The board includes representatives of Developers, Business owners and Building Managers (Section 9).
The board includes PCI, UAP, Constructors and specialty trade contractors, and Academe (Section 9).
A Green Building Division is created in the City Environment and Natural Resources Office to implement the ordinance’s provisions (Section 10).
The Green Building Division is headed by a Green Building Chief, who manages and supervises operations of the Green Building Division (Section 10).
The Green Building Division is staffed with:
- One (1) Division Chief (GBO IV) – SG 22
- Four (4) Section Chiefs (GBO IV) – SG 18
- Four (4) Evaluators/Inspectors (GBO II) – SG 15
- Eight (8) Evaluators/Inspectors – SG 11
- One (1) Secretary – SG 11
- One (1) Data Encoder – SG 6
- One (1) Driver – SG 4
- One (1) Utility – SG 4
- One (1) Liaison Officer – SG 4 (Section 10).

Tax credit eligibility and deduction rates

A taxpayer is eligible for a Green Building Tax Credit against a tax due (Section 11).
The Green Building Tax Credit is available for construction of a green building or rehabilitation/retrofitting of a building that is not a green building into a green building (Section 11).
The facility must be within the territorial jurisdiction of Pasig City, and the applicant must be the actual and lawful owner or contract purchaser at the time of erection, construction, installation, or acquisition of the proposed facility (Section 11).
If a building owner receives a credit and then sells the property or any interest, the credit for periods after the sale that would have been allowable to the prior owner is allowable to the new owner, and the credit for the year of sale is allocated between parties based on number of days each held the property or interest (Section 11).
If a tenant receives a credit and tenancy terminates but the property remains in use in the building by a successor tenant, the credit for periods after termination that would have been allowable to the prior tenant is allowable to the successor tenant, and the credit for the year of termination is allocated based on number of days the property was used by each (Section 11).
For successor owner or tenant credits, the City Treasurer and City Assessor are authorized to reveal to the successor owner or tenant information about the prior owner/tenant credit that forms the basis for denial in whole or in part of the successor’s claimed credit (Section 11).
The Green Building Tax Credit may be allowed for any taxable year unless the Green Building Certificate is approved by the Pasig City Green Building Board (PCGB Board) (Section 11).
The tax credit cannot exceed ten percent (10%) of the total amount of Real Property Tax due for the same taxable year, and it cannot exceed five (5) years (Section 11).
The ordinance grants the green building a maximum deduction from real property tax of:
- 2% if 1 STAR
- 4% if 2 STAR
- 6% if 3 STAR
- 8% if 4 STAR
- 10% if 5 STAR (Section 11).

Fines, imprisonment, and corporate liability

Any person who violates the ordinance is punishable upon conviction with a fine of not less than PHP 2,000.00 and not more than PHP 5,000.00 or imprisonment of two (2) months to one (1) year, or both, at the discretion of the court (Section 12).
If the violator is a corporation or partnership, the penalties are imposed on the president and/or general manager or the managing partner, as applicable (Section 12).
The penalties do not prejudice filing of proper administrative, criminal, or civil actions for violations of other laws (Section 12).

Implementing rules, budget, and final clauses

Within two (2) months from the ordinance’s effectivity, the PCGB Board must prepare the Implementing Rules and Regulations (IRR) subject to approval of the City Mayor (Section 13).
The IRR are subject to periodic review by the PCGB Board (Section 13).
In extreme necessity, the PCGB Board must convene immediately to evaluate which portions are difficult to conform with and/or counter to the objective of the city (Section 13).
Initial budgetary support for implementation must come from the city’s unprogrammed budget, and thereafter the budget must be included in the budget of the DRRM Fund under Climate Change programs (Section 14).
All inconsistent Pasig City local ordinances, executive orders, and administrative regulations of the local chief executive, or parts thereof, are modified or repealed accordingly (Section 15).
If any part or provision is held unconstitutional or invalid by a competent court, the remaining parts or provisions continue in full force and effect (Section 16).
The ordinance takes effect fifteen (15) days after its complete publication in a newspaper of general circulation (Section 17).