Natural Gas Vehicle Program EO

Coverage and key program components

The NGVPPT covers gas supply, infrastructure development, market development, technology, incentives and financial assistance, manpower development, standards and regulatory concerns, and Information Education Communication (IEC) (Section 2).
For gas supply, natural gas shall be supplied as CNG in the transport sector through: (i) use of indigenous gas resources such as Malampaya gas from Palawan for the NGVPPT and other local gas for additional demand, and (ii) importation of liquefied natural gas (LNG) to supplement existing indigenous supply (Section 2).
For infrastructure development, CNG refueling stations and related facilities shall be established in strategic locations along major thoroughfares in Metro Manila and Luzon to serve CNG-powered public utility vehicles (PUVs) (Section 2).
CNG refueling stations may use a combination of a “mother-daughter” system and/or an on-line station where the required gas pipeline is already available; in the absence of a pipeline in the initial phase, refueling shall use a “mother-daughter” scheme with a high pressure mother station built inside the Malampaya Onshore Gas Plant (MOGP) and daughter stations in identified strategic locations (Section 2).
For market development, public transport is defined for NGVPPT encouragement to include public utility buses (PUBs), public utility jeepneys (PUJs), taxis, and other PUVs (Section 2).
For technology, NGVPPT adopts existing world NGV technology locally in compliance with applicable local and international standards, including OEM-NGV, retrofit system, and conversion options (Section 2).
NGVPPT strongly recommends the adoption of OEM-NGVs during the initial phase, followed by retrofit system and conversion option when they become technically and commercially feasible (Section 2).
The NGVPPT shall develop and offer an incentive package for all NGV industry stakeholders (Section 2).
Manpower development shall pursue local capability and expertise in NGV retrofitting, conversion, fabrication of conversion systems, NGV and refueling station operation and maintenance, and related activities, including capability to locally produce NGV chassis, bodies, and engines through technology transfer and training (Section 2).
Standards, codes of practice, and regulatory procedures shall be established by relevant agencies to ensure integrity of the NGVPPT and public safety (Section 2).
An IEC program shall inform and educate stakeholders and the general public on the benefits of using natural gas, particularly in the transport sector (Section 2).

Lead and implementing agencies’ duties

The Department of Energy (DOE) shall be the lead implementing agency consistent with Executive Order No. 66, series of 2002, designating the DOE as the lead agency in developing the Philippine natural gas industry (Section 3).
In coordination with other government agencies, institutions, and the private sector, the DOE shall: (i) take the lead in implementing the NGVPPT, including pilot projects, encouragement of CNG-powered PUVs, and establishment of necessary refueling infrastructure; (ii) develop an implementation plan to ensure success, synergy, and continuity; (iii) develop and implement necessary guidelines to accomplish the objectives; (iv) develop a CNG Masterplan in coordination/cooperation with concerned government agencies/institutions and in consultation with stakeholders; and (v) facilitate program participants’ access to privileges and incentives (Section 3).

Co-implementing agencies’ assigned roles

The Department of Environment and Natural Resources (DENR) through its Environmental Management Bureau (EMB) shall fast track issuance of Environmental Compliance Certificates (ECC) for NGV facilities and refueling stations and shall formulate emission standards for CNG (Section 4).
The Department of Finance (DOF) shall create a pricing environment conducive to the use of CNG vis-à-vis diesel and shall formulate tax policies relative to the NGVPPT (Section 4).
Through the Bureau of Internal Revenue (BIR), the DOF shall develop revenue regulations implementing time-bound tax incentives for CNG, NGVs, and related facilities and infrastructure (Section 4).
Through the Bureau of Customs (BOC), the DOF shall implement guidelines on reduced tariffs on NGVs, NGV engines, and other NGV industry-related equipment, facilities, parts and components duly certified by the DOE (Section 4).
The Department of Science and Technology (DOST) shall: develop and promote locally manufactured NGV conversion kits, parts, and components; develop training modules on NGV conversion, operation and maintenance, and refueling station operation and maintenance; and establish testing centers for NGV systems, components, related equipment, and facilities together with the DOE (Section 4).
The Department of Trade and Industry (DTI) shall have: through the Bureau of Product Standards (BPS), establishment of Philippine National Standards for Natural Gas Utilization in the Transport Sector and certification of safety of CNG fuel, NGVs, NGV systems and components, and related equipment and facilities; and through the Board of Investment (BOI), enhancement of existing incentives for land transportation using CNG, conversion shops, terminals with CNG refueling stations, and manufacture/assembly of NGVs, and provision of incentives to other NGV industry-related activities (Section 4).
The Department of Transportation and Communications (DOTC) shall work with the DOE to develop an implementation plan for a gradual shift to CNG fuel utilization in PUVs and to promote NGVs in Metro Manila and Luzon through issuance of directives/orders providing preferential franchises on present-day major routes and exclusive franchises to NGVs in newly opened routes, and through compliance with emission standards and other preferential incentives (Section 4).
The Land Transportation Office (LTO) shall issue Certificates of Compliance (COC) with emission standards to NGVs (Section 4).
The Land Transportation Franchising and Regulatory Board (LTFRB) shall grant preferential and exclusive Certificates of Public Convenience (CPC) or franchises to operators of NGVs based on the results of DOTC surveys (Section 4).
The Department of Interior and Local Government shall formulate safety measures relative to NGV industry practices and shall apprehend violators of standards and safety rules and regulations (Section 4).
The Metro Manila Development Authority (MMDA) shall provide regulatory and administrative support and introduce traffic schemes favoring NGVs to enhance their use in Metro Manila, and shall integrate the location of CNG refueling stations within the overall plan/rationalization of its intermodal terminal program (Section 4).
The Tariff Commission (TC) shall reduce tariffs on NGVs, NGV engines, conversion kits/systems, refueling equipment, and other NGV industry-related equipment, facilities, parts, and components (Section 4).
The Technical Education and Skills Development Authority (TESDA) shall develop training modules, conduct training for NGV conversion/retrofit/maintenance engineers, mechanics and technicians, and certify trainees after training (Section 4).
Government financing institutions (GFIs), including DBP, Landbank of the Philippines (LBP), TIDCORP, and SBGFC, shall develop separate financing windows for the NGV industry providing affordable and commercially tenable financing to NGV and refueling station operators and related infrastructure operators (Section 4).
The Philippine National Oil Company (PNOC), together with PNOC-Exploration Corporation, shall provide necessary support for infrastructure development, including gas supply for performance testing of demo NGVs (Section 4).

Program privileges and incentives

NGVPPT participants may avail of an income tax holiday for pioneering projects qualifying under the BOI’s Investments Priorities Plan (Section 5).
NGVPPT participants may avail of a one percent (1%) rate of duty on imported NGVs, NGV engines, and other NGV industry-related equipment and facilities/parts/components duly certified by the DOE (Section 5).
NGVPPT participants may avail of LTO issuance of Certificates of Compliance with Emissions Standards to NGVs (Section 5).
NGVPPT participants may avail of preferential and exclusive franchises from the LTFRB for NGVs to newly opened routes (Section 5).
NGVPPT participants may avail of accelerated issuance by DENR of ECC for NGV facilities and refueling stations (Section 5).
NGVPPT participants may avail of affordable and commercially tenable financial packages from GFIs (Section 5).
NGVPPT participants may avail of manpower development and capability building through training and technology transfer programs (Section 5).
NGVPPT participants may avail of attractive CNG prices that translate to a discount to diesel price (Section 5).
NGVPPT participants may avail of other privileges and incentives that may subsequently be provided (Section 5).

Pilot project in specified routes

A Pilot Project shall 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 (Section 6).
The Pilot Project objective is to promote CNG as an indigenous clean alternative fuel to diesel and to improve air quality (Section 6).
The Pilot Project shall evaluate commercial viability, technical requirements, market demand, impact of incentives, and public acceptance for natural gas in the public transport sector (Section 6).
Pilot Project components shall include: (i) launching of 100 OEM natural gas buses; (ii) construction/operation of mother-daughter CNG refueling stations; (iii) application/operationalization of newly designed incentives and financing packages; and (iv) IEC campaigns (Section 6).

Executive Forum governance and meetings

An NGVPPT Executive Forum is created to function as a regular and permanent body providing effective leadership, coordination, and proper direction in implementing the NGVPPT (Section 7).
The Executive Forum shall be composed of the lead implementing and co-implementing agencies, with an Undersecretary of the DOE as Chairperson and senior officials of co-implementing agencies as members (Section 8).
Representatives from the private sector may be invited as members and/or resource participants to promote an environment conducive to active private sector participation, including representatives from infrastructure developers, refueling station operators, the transport sector, non-government organizations, and similar entities (Section 8).
The Chairperson and each member shall designate a permanent alternate (Section 8).
The Executive Forum shall accelerate, integrate, and coordinate interagency activities, including implementation of existing privileges and incentives and formulation of additional fiscal and non-fiscal incentives, financial packages, and standards (Section 9).
The Executive Forum shall formulate its own programs, plans, and activities toward NGVPPT objectives, monitor implementation of agency actions and recommendations, and recommend measures enhancing competitiveness of the NGV industry (Section 9).
The Executive Forum shall develop internal rules governing conduct of its meetings and other deliberations or proceedings (Section 9).
The Executive Forum shall meet as often as necessary, but in no case less than once every quarter (Section 9).

DOE Secretariat support; separability and effectivity

Technical and secretariat support to the Executive Forum shall be provided by the DOE (Section 10).
If any provision of the Executive Order is declared unconstitutional with finality by a court of competent jurisdiction, the validity of the other provisions shall not be affected (Section 11).
The Executive Order shall take effect immediately (Section 12).

Identification, issuance, and transmittal details

The Executive Order is Executive Order No. 290 titled “IMPLEMENTING THE NATURAL GAS VEHICLE PROGRAM FOR PUBLIC TRANSPORT” (Executive Order No. 290).
The Executive Order is dated February 24, 2004 and was published in 100 OG. No. 23, 3474 (June 7, 2004) (February 24, 2004; June 7, 2004).
The Executive Order is issued by President Gloria Macapagal-Arroyo and signed by Alberto G. Romulo, Executive Secretary (Section: Signing).