Title
Natural Gas Vehicle Program for Public Transport
Law
Executive Order No. 290
Decision Date
Feb 24, 2004
Executive Order No. 290 establishes the Natural Gas Vehicle Program for Public Transport in the Philippines, aiming to diversify fuel sources and promote the use of compressed natural gas as a clean alternative for public utility vehicles, with the Department of Energy as the lead implementing agency and various privileges and incentives for program participants.
A

Scope and Coverage

  • Part of the Philippine Natural Gas Industry.
  • Gas Supply: Use indigenous Malampaya gas and import liquefied natural gas (LNG) as needed.
  • Infrastructure: Establish CNG refueling stations strategically in Metro Manila and Luzon, utilizing mother-daughter and/or on-line refueling systems depending on pipeline availability.
  • Market Development: Encourage public transport vehicles (buses, jeepneys, taxis, other PUVs) to use natural gas.
  • Technology: Adopt international NGV technology standards, prioritize OEM-NGVs in initial phases, followed by retrofit and conversion options as they become feasible.
  • Incentives: Offer incentive packages to NGV industry participants.
  • Manpower development: Build local expertise in NGV-related skills and local production capabilities through training and technology transfer.
  • Standards & Regulatory Concerns: Establish codes of practice to ensure safety and program integrity.
  • Information, Education, Communication (IEC): Conduct public awareness campaigns on natural gas benefits.

Lead Implementing Agency

  • The Department of Energy (DOE) is the lead implementing agency.
  • Responsibilities include leading implementation, pilot projects, creating guidelines and a CNG Masterplan, and facilitating access to incentives.

Co-Implementing Agencies and Roles

  • Department of Environment and Natural Resources (DENR): Expedite Environmental Compliance Certificates, set emission standards.
  • Department of Finance (DOF): Create tax policies and tax incentives through BIR and BOC for CNG, NGVs, parts, and infrastructure.
  • Department of Science and Technology (DOST): Develop local NGV conversion kits, training modules, and testing centers.
  • Department of Trade and Industry (DTI): Set Philippine National Standards via BPS and provide incentives via BOI.
  • Department of Transportation and Communications (DOTC): Develop implementation plan, issue preferential franchises and Certificates of Compliance for NGVs.
  • Department of Interior and Local Government (DILG): Formulate safety measures and enforce compliance.
  • Metro Manila Development Authority (MMDA): Support regulatory schemes favoring NGVs.
  • Tariff Commission (TC): Reduce tariffs on NGVs and related equipment.
  • Technical Education and Skills Development Authority (TESDA): Provide training and certification programs.
  • Government Financing Institutions (GFIs): Offer dedicated financing windows for NGV industry.
  • Philippine National Oil Company (PNOC): Support infrastructure development and supply gas for operations/testing.

Privileges and Incentives

  • Income tax holiday for pioneering projects under BOI's Investment Priorities Plan.
  • One percent duty rate on imported NGVs, engines, and related equipment.
  • Certificates of Compliance with emission standards issued by LTO.
  • Preferential and exclusive franchises for NGVs by LTFRB.
  • Accelerated issuance of ECCs by DENR.
  • Affordable financing packages from government financial institutions.
  • Manpower development through training and technology transfer.
  • Attractive pricing for CNG providing a discount compared to diesel.
  • Other future privileges and incentives as may be established.

Pilot Project

  • Launch 100 Original Equipment Manufactured (OEM) natural gas buses on Batangas-Manila or Metro Manila routes.
  • Construct and operate mother-daughter CNG refueling stations.
  • Implement new incentives and financial package schemes.
  • Conduct Information, Education, and Communication (IEC) campaigns.
  • Objective: demonstrate commercial viability, technical feasibility, market demand, and public acceptance of NGVs.

Executive Forum Creation, Composition, and Powers

  • Establish the NGVPPT Executive Forum as a permanent coordinating body.
  • Chaired by the DOE Undersecretary with senior officials of involved agencies as members.
  • Private sector representatives may be invited as members or resource participants.
  • Functions include accelerating and coordinating implementation, monitoring activities, formulating fiscal/non-fiscal incentives, and recommending enhancements.
  • The Forum adopts its own internal rules and meets at least quarterly.

Secretariat and Support

  • The DOE provides technical and secretariat support to the Executive Forum.

Separability Clause

  • If any provision is declared unconstitutional, other provisions remain valid and enforceable.

Effectivity

  • The Executive Order takes effect immediately upon signing by the President.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.