Creation of the National Renewable Energy Board (NREB).
SEC. 27. Creation of the National Renewable Energy Board (NREB). — The NREB is hereby created. It shall be composed of a Chairman and one (1) representative each from the following agencies: DOE, DTI, DOF, DENR, NPC, TRANSCO or its successors-in-interest, PNOC and PEMC who shall be designated by their respective secretaries on a permanent basis; and one (1) representative each from the following sectors; Re Developers, Government Financial Institutions (GFIs), private distribution utilities, electric cooperatives, electricity suppliers and nongovernmental organizations, duly endorsed by their respective industry associations and all to be appointed by the President of the Republic of the Philippines.
The Chairman shall, within one (1) month from the effectivity of this Act, convene the NREB.
The NREB shall be assisted by a Technical Secretariat from the Renewable Energy Management Bureau of the DOE, created under Section 32 hereof, and shall directly report to the Office of the Secretary or the Undersecretary of the Department, as the case may be, on matters pertaining to the activities of the NREB. The number of staff of the Technical Secretariat and the creation of corresponding positions necessary to complement and/or augment the existing plantilla of the Renewable Energy Management Bureau shall be determined by the Board, subject to approval by the Department of Budget and Management (DBM) and to existing civil service rules and regulations.
The NREB shall have the following powers and functions:
Evaluate and recommend to the DOE the mandated RPS and minimum RE generation capacities in off-grid areas, as it deems appropriate;
Recommend specific actions to facilitate the implementation of the National Renewable Energy Program (NREP) to be executed by the DOE and other appropriate agencies of government and to ensure that there shall be no overlapping and redundant functions within the national government departments and agencies concerned;
Monitor and review the implementation of the NREP, including compliance with the RPS and minimum RE generation capacities in off-grid areas;
Oversee and monitor the utilization of the Renewable Energy Trust Fund created pursuant to Section 28 of this Act and administered by the DOE; and
Perform such other functions, as may be necessary, to attain the objectives of this Act.
Renewable Energy Trust Fund (RETF).
SEC. 28. Renewable Energy Trust Fund (RETF). — A Renewable Energy Trust Fund is hereby established to enhance the development and greater utilization of renewable energy. It shall be administered by the DOE as a special account in any of the GFIs. The RETF shall be exclusively used to:
Finance the research, development, demonstration, and promotion of the widespread and productive use of RE systems for power and non-power applications, as well as to provide funding for research and development institutions engaged in renewable energy studies undertaken jointly through public-private sector partnership, including provision for scholarship and fellowship for energy studies;
Support the development and operation of new RE resources to improve their competitiveness in the market: Provided, That the grant thereof shall be done through a competitive and transparent manner;
Conduct nationwide resource and market assessment studies for the power and non-power applications of renewable energy systems;
Propagate RE knowledge by accrediting, tapping, training, and providing benefits to institutions, entities and organizations which can extend the promotion and dissemination of RE benefits to the national and local levels; and
Fund such other activities necessary or incidental to the attainment of the objectives of this Act.
Use of the fund may be through grants, loans, equity investments, loan guarantees, insurance, counterpart fund or such other financial arrangements necessary for the attainment of the objectives of this Act: Provided, That the use or allocation thereof shall, as far as practicable, be done through a competitive and transparent manner.
The RETF shall be funded from:
Proceeds from the emission fees collected from all generating facilities consistent with Republic Act No. 8749 or the Philippine Clean Air Act;
One and a half percent (1.5%) of the net annual income of the Philippine Charity Sweepstakes Office;
One and a half percent (1.5%) of the net annual income of the Philippine Amusement and Gaming Corporation;
One and a half percent (1.5%) of the net annual dividends remitted to the National Treasury of the Philippine National Oil Company and its subsidiaries;
Contributions, grants and donations: Provided, That all contributions, grants and donations made to the RETF shall be tax deductible subject to the provisions of the National Internal Revenue Code. Towards this end, the Bureau of Internal Revenue (BIR) shall assist the DOE in formulating the rules and regulations to implement this provision;
One and a half percent (1.5%) of the proceeds of the Government share collected from the development and use of indigenous non-renewable energy resources;
Any revenue generated from the utilization of the RETF; and
Proceeds from the fines and penalties imposed under this Act.
Financial Assistance Program.
SEC. 29. Financial Assistance Program. — Government financial institutions such as the Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP), Phil-Exim Bank and other government financial institutions shall, in accordance with and to the extent allowed by the enabling provisions of their respective charters or applicable laws, provide preferential financial packages for the development, utilization and commercialization of RE projects as duly recommended and endorsed by the DOE.
Adoption of Waste-To-Energy Technologies.
SEC. 30. Adoption of Waste-To-Energy Technologies. — The DOE shall, where practicable, encourage the adoption of waste-to-energy facilities such as, but not limited to, biogas systems. The DOE shall, in coordination with the DENR, ensure compliance with this provision.
As used in this Act, waste-to-energy technologies shall refer to systems which convert biodegradable materials such as, but not limited to, animal manure or agricultural waste, into useful energy through processes such as anaerobic digestion, fermentation and gasification, among others, subject to the provisions and intent of Republic Act No. 8749 (Clean Air Act of 1999) and Republic Act No. 9003 (Ecological Solid Waste Management Act of 2000).
Incentives for RE Host Communities/LGUs.
SEC. 31. Incentives for RE Host Communities/LGUs. — Eighty percent (80%) of the share from royalty and/or government share of RE host communities/LGUs from RE projects and activities shall be used directly to subsidize the electricity consumption of end-users in the RE host communities/LGUs whose monthly consumption do not exceed one hundred kilowatt hours (100 kWh). The subsidy may be in the form of rebates, refunds and/or any other form as may be determined by the DOE, the DOF and the ERC, in coordination with the NREB.
The DOE, the DOF and the ERC, in coordination with the NREB and in consultation with the distribution utilities, shall promulgate the mechanisms to implement this provision within six (6) months from the effectivity of this Act.
Creation of the Renewable Energy Management Bureau.
SEC. 32. Creation of the Renewable Energy Management Bureau. — For the purpose of implementing the provisions of this Act, a Renewable Energy Management Bureau (REMB) under the DOE is hereby established, and the existing Renewable Energy Management Division of the Energy Utilization Management Bureau of the DOE, whose plantilla shall form the nucleus of REMB, is hereby dissolved. The organizational structure and staffing complement of the REMB shall be determined by the Secretary of the DOE, in consultation with the DBM, in accordance with existing civil service rules and regulations. The budgetary requirements necessary for the creation of the REMB shall be taken from the current appropriations of the DOE, Thereafter, the funding for the REMB shall be included in the annual General Appropriations Act.
The REMB shall have the following powers and functions:
Implement policies, plans and programs related to the accelerated development, transformation, utilization and commercialization of renewable energy resources and technologies;
Develop and maintain a centralized, comprehensive and unified data and information base on renewable energy resources to ensure the efficient evaluation, analysis, and dissemination of data and information on renewable energy resources, development, utilization, demand and technology application;
Promote the commercialization/application of renewable energy resources including new and emerging technologies for efficient and economical transformation, conversion, processing, marketing and distribution to end users;
Conduct technical research, socioeconomic and environmental impact studies of renewable energy projects for the development of sustainable renewable energy systems;
Supervise and monitor activities of government and private companies and entities on renewable energy resources development and utilization to ensure compliance with existing rules, regulations, guidelines and standards;
Provide information, consultation and technical training and advisory services to developers, practitioners and entities involved in renewable energy technology and develop renewable energy technology and develop renewable energy technology development strategies; and
Perform other functions that may be necessary for the effective implementation of this Act and the accelerated development and utilization of the renewable energy resources in the country.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
