COE reviews EE&C bill incentives with PE2 inputs

  • PE2 president Alexander Ablaza (speaking) presents the latest position of PE2 on fiscal incentives under the EE&C bill in a meeting of the House Committee on Energy on 13 August 2018. (PE2 Photo by Luigi Eusebio)
    PE2 president Alexander Ablaza (speaking) presents the latest position of PE2 on fiscal incentives under the EE&C bill in a meeting of the House Committee on Energy on 13 August 2018. (PE2 Photo by Luigi Eusebio)
  • The House Committee on Energy convenes a special meeting on 13 Aug 2018 to discuss the incentives provision of the EE&C bill, with inputs from PE2 president Alexander Ablaza (right foreground, partly hidden) (PE2 Photo by Luigi Eusebio)
    The House Committee on Energy convenes a special meeting on 13 Aug 2018 to discuss the incentives provision of the EE&C bill, with inputs from PE2 president Alexander Ablaza (right foreground, partly hidden) (PE2 Photo by Luigi Eusebio)

HOUSE OF REPRESENTATIVES, Quezon City, 13 August 2018 – The Philippine Energy Efficiency Alliance (PE2) manifested before the Committee on Energy (COE) of the House of Representatives its two-point position on the consolidation of House Bill No. 6642 by Rep. Luis Raymund “LRay” Villafuerte, Jr. into the Substitute EE&C Bill. Submitted formally under a PE2 letter dated 9 August 2018, the new position of the Alliance was forwarded in response to the letter of COE Chairman Lord Allan Jay Q. Velasco to PE2 president Alexander Ablaza dated 7 August 2018.

The COE discussions were led by its committee members Rep. Xavier Jesus D. Romualdo, who chaired the meeting, and Reps. Carlos Roman Uybarreta, Rodel M. Batocabe and Orestes T. Salon. Upon motion of Rep. Uybarreta, the committee decided to limit the scope of all meeting discussions to the bill section on fiscal incentives.

PE2 informed the committee that it issued a position paper for the House Committee on Ways and Means (CWM) on 31 July 2018. That letter called for new language for Section 20 (Fiscal Incentives) of the Substitute EE&C Bill, amid the recent approval of the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO, formerly known as TRAIN-2) substitute bill by the CWM on 31 July 2018. The Alliance reported to the energy panel that the TRABAHO bill effectively repeals fiscal incentives provisions of previous investment promotion laws, including E.O. 226, which continued to be the policy basis for the fiscal incentives provision in the Substitute EE&C bill. PE2 emphasized the need for the new Section 20 to: specify the recommended incentives for EE&C Projects that will be needed to ensure the financial viability of EE&C investments; remove its express reference to E.O. 226; identify the Board of Investments (BOI) as the lead investment promotion agency to administer the fiscal incentives for EE&C Projects; remove restrictions on ownership by nationality; and, define a minimum 15-year availment of the recommended fiscal incentives.

The COE members were briefed by PE2 on the need for 6-year income tax holiday, zero-rated valued added-tax, tax and duty-free importation incentives, relaxed restrictions on ownership by nationality, a minimum 15-year availment of the incentive package prior to review and to qualify EE&C projects by themselves as eligible economic activity under the Strategic Investment Priority Plan.

PE2 told the Committee that it supports all COE efforts in the common objective of ensuring that the legislative process would allow the swift passage of the EE&C Bill during the remaining term of the 17th Congress.

Ablaza was also asked by the new leadership of the Energy Efficiency Practitioners Association of the Philippines (ENPAP), led by its president Raymond A. Marquez, to submit ENPAP’s two recommendations on the consolidated EE&C bill. ENPAP sought the rewording of the Section 10 title to “Certification of Energy Efficiency and Conservation Officers and Energy Managers.” ENPAP also recommended that the requirement for Certified Energy Managers not be limited to registered engineers but shall also include other professionals who directly oversee and manage, and have the authority to decide on all matters concerning energy sourcing, procurement, use and saving, and acquisition, installation and operation of allied energized and non-energized equipment/systems. Marquez presently serves PE2 as trustee and chairman of its membership committee.

Other resource persons declaring support for the inclusion of appropriate fiscal incentives for EE&C projects were Director Jesus T. Tamang of the Department of Energy, and Director Nestor P. Arcansalin of BOI.

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