AN ACT PROVIDING FOR THE DEVELOPMENT OF THE ELECTRIC VEHICLE INDUSTRY

Eighteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-sixth day of July, two thousand twenty one.

[ REPUBLIC ACT NO. 11697, April 15, 2022 ]

AN ACT PROVIDING FOR THE DEVELOPMENT OF THE ELECTRIC VEHICLE INDUSTRY

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Title. - This Act shall be known as the "Electric Vehicle Industry Act."

CHAPTER 1
GENERAL  PROVISIONS

Section 2. Declaration of Policy. - It is hereby declared the policy of the State to:

Section 3. Scope and Application. - This Act shall apply to the manufacture, assembyler, 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. Definition of Terms. - As used in this Act, the following terms shall be defined as stated below:

CHAPTER II
ROLE OF GOVERNMENT AGENCIES

Section 5. Government Regulations. - All government regulations related to the EV industry shall be formulated to facilitate the creation of an enabling environment for competitive, equitable, and non-discriminatory private sector participation, with preference for indigenous technologies, to attain the long-term goal of energy security, energy sufficiency, and stable energy prices.

Section 6. Comprehensive Roadmap for Electric Vehicle Industry (CREVI). The CREVI refers to a national development plan for the EV industry with an annual work plan to accelerate the development, commercialization, and utilization of EVs in the country comprised of the following four (4) components;

Section 7. Role of the Department of Energy. - The DOE shall be the primary agency tasked with the promotion of the adoption of EVs and the development of charging stations and related equipment. Towards this end, the DOE shall:

Section 8. Role of the Energy Regulatory Commission. - In addition to its functions under Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001", and other existing laws, the ERC shall:

Section 9. Role of the Department of Transportation. - The DOTr shall be the primary agency tasked with the development of EV demand generation, and the regulation and registration of EVs, as well as franchising of EVs used for public transportation. Towards this end, the DOTr shall:

Section 10. Role of the Department of Trade and Industry. - The DTI shall be the primary agency tasked with the promotion and development of the ocal manufacturing of the EV industry. Towards this end, the DTI shall:

Section 11. Role of Local Government Units. - In addition to its functions under existing laws, LGUs shall:

Section 12. Role of the Department of Public Works and Highways. - In addition to its functions under existing laws, the DPWH shall establish guidelines on the following:

Section 13. Role of the Department of Science and Technology. - In addition to its functions under existing laws, the DOST shall:

Section 14. Role of the Department of Environment and Natural Resources. - In addition to its functions under existing laws, the DENR shall:

Section 15. Role of the National Economic and Development Authority. - In recognition of the importance of the role of the EV industry in national development, the NEDA shall include the CREVI in the Philippine Development Plan.

CHAPTER III
DEMAND GENERATION AND INDUSTRY DEVELOPMENT

Section 16. Mandatory EV Share in Corporate and Government Entities. - The following entities shall ensure that at least five percent (5%) of their fleet, whether owned or leased, shall be EVs within the time frame indicated in the CREVI:

The CREVI shall provide a timeline for the gradual increase of such percentage until the entire fleet of the covered entities will all be EVs. In the implementation of this provision, the availability and sufficiency of energy supply and EV charging stations as well as other conditions affecting the optimize utilization of EVs shall be taken into consideration.

Section 17. Dedicated Parking Slots for Electric Vehicles in Private and Public Buildings and Establishments. - Private and public buildings and establishments constructed after the effectivity of this Act and pursuant to the National Building Code of the Philippines shall designate dedicated parking slots for the exclusive use of EVs to include light electric vehicles: Provided, That the number of dedicated parking slots shall be proportional to the total number of parking slots within the building or establishment as provided in the CREVI: Provided, further, That if there are twenty (20) or more parking slots, there should be at least five percent (5%) dedicated parking slots for EVs of the total number of parking slots within the building or establishment: Provided, finally, That existing private and public buildings and establishments shall comply with the foregoing requirements within the time frame indicated in the CREVI.

No permit shall be issued by the LGU for the construction or renovation of a building or establishment unless this section has been complied with.

Section 18. Construction or Installation of Charging Stations in Dedicated Parking Slots. - The CREVI shall determine when dedicated parking slots shall be installed with a charging stations either by the owner of the building or establishment or a charging station service provider: Provided, That the owner of the private or public building or establishment shall have the first priority to install, operate, or maintain a charging station in its premises.

The charging stations installed in private and public buildings and establishments may be own-use charging stations or commercial use charging stations: Provided, That the CREVI shall identify specific public buildings and establishments to be installed with commercial use charging stations for the general public.

Section 19. Construction or Installation of Charging Stations in Gasoline Stations. - Select gasoline stations identified in the CREVI shall designate dedicated spaces for the installation of commercial use charging stations for the general public. The CREVi shall determine when dedicated spaces in gasoline stations shall be installed with a commercial use charging station either by the owner of the gasoline station or a charging station service provider: Provided, That the owner of the gasoline station shall have the first priority to install, operate, or maintain a commercial use charging station in its premises. A gasoline station, if required under the CREVI to have a designated space for c charging station, shall not be issued a construction, operation, or compliance permit by the DOE unless the owner shows that there is ample space for the construction or installation of charging stations within its premises.

Section 20. Use of Charging Stations. - The construction, installation, utilization, operation, and maintenance of charging stations shall comply with all rules, regulations, and standards issued pursuant to this Act.

Own-use charging stations shall not be allowed to impose and collect charging fees. Commercial use charging stations may be allowed to impose and collect charging fees, which shall be unbundled.

Section 21. Permits. - The time frame for the procedure of all permits and licenses issued pursuant to this Act shall be governed by Republic Act No. 11234, otherwise known as the "Energy Virtual One-Stop Shop Act:. Towards this end, the EVOSS Steering Committee shall include the Anti-Red Tape Authority among its members.

Section 22. Duties and Responsibilities of Owners or Operators of Charging Stations. - An owner or operator of a charging station shall have the following duties and responsibilities:

Section 23. Duties and Responsibilities of Distribution Utilities. - A DU shall have the following duties and responsibilities:

CHAPTER IV
INCENTIVES

Section 24. Fiscal Incentives. -

Section 25. Non-Fiscal Incentives. - The following non-fiscal incentives shall remain in force for eight (8) years from the effectivity of this Act:

Section 26. Financial Assistance. - Government financial institutions and other financial institutions, in accordance with and to the extent allowed by the enabling provisions of their respective charters or applicable laws, are encouraged to provide concessional financial packages for entities engaged in the activities mentioned in Section 24 of this Act, and preferential interest rates and payment scheme on consumer loans for the acquisition of EVs and charging stations.

The Bangko Sentral ng Pilipinas shall encourage banks to lend a certain percentage of their portfolio to EV, charging stations, and battery manufacturers, assemblers, and end users: Provided, That financing packages fr EV fleets shall be prioritized and the procedure shall be streamlined.

CHAPTER V
FINAL PROVISIONS

Section 27. Established of Dedicated Offices. - The DOE, DOTr, and DTI shall establish dedicated offices for the effective implementation of this Act. The organizational structure and staffing complement shall be determined by the Secretaries of the DOE, DOTr, and DTI, in consultation with the Department of Budget and Management, and in accordance with existing civil service rules and regulations.

The budgetary requirements necessary for the establishment of the dedicated offices shall be taken from the current appropriations of each agency concerned. Thereafter, the funding for the dedicated offices shall be included in the annual General Appropriations Act.

Section 28. Penalties. - A fine ranging from a minimum of Fifty thousand pesos (P50,000.00) to a maximum of Five hundred thousand pesos (P500,000.00), and may include suspension or revocation of permits issued, if applicable, shall be imposed upon any reason, both natural and juridical, who violates Section 6, 16, 17, 18, 19, 20, 21, 22, and 23 of this Act and all rules, regulations, and standards promulgated pursuant to Sections 7, 8, 9, 10, 11, 12, 13, 14, and 15 of this Act: Provided, That this is without prejudice to the penalties provided under existing laws, rules, and regulations prescribed by other concerned agencies. The DOE, DOTr, and DPWH shall, in coordination with the DTI and the DILG, issue appropriate rules and regulations on the imposition of these fines and penalties.

Section 29. Congressional Oversight. - The Joint Congressional Energy Commission (JCEC), created under Republic Act No. 9136, as amended, shall exercise oversight powers over the implementation of this Act. The DOE, DOTr, DTI, and other relevant NGAs shall submit to CREVI and a report on the implementation of this Act to the JCEC not later than the 1st day of December of every year.

Section 30. Implementing Rules and Regulations (IRR). - The DOE together with the DOTr shall, in coordination with the DTI, and in consultation with other relevant NGAs and public and private stakeholders, issue the IRR within one hundred twenty (120) days upon the effectivity of this Act.

Failure of the relevant government agencies to promulgate the IRR within the specified period shall subject to the heads of these government agencies to administrative penalties under applicable civil service laws.

Should the IRR contain provisions that are contrary to this Act, the heads of the government agencies responsible for such provision, when done in bad faith or with gross negligence, shall be held administratively liable.

Section 31. Separability Clause. - If any portion or provision of this Act is declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect.

Section 32. Repealing Clause. - Any law, presidential decree or issuance, executive order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

Section 33. Effectivity. - This Act shall take effect fifteen (15) days following its complete publication in the Official Gazette or in a newspaper of general circulation.

Approved, 

This Act which is a consolidation of Senate Bill No. 1382 and House Bill No. 10213 was passed by the Senate of the Philippines and the House of Representatives on December 16, 2021 and January 17, 2022, respectively.

Approved: Lapsed into law on APR 15 2022 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.

RODRIGO ROA DUTERTE
President of the Philippines