Renewable Energy Trust Fund (RETF)
The Renewable Energy Trust Fund (RETF) is a special fund established under Section 28 of the Renewable Energy Act of 2008 (RA 9513) to promote the development and greater utilization of renewable energy. It is administered by the Department of Energy (DOE) as a special account in Government Financial Institutions (GFIs) [NREP 2020-2040, p.8, 2022].
Enabling Issuances
- Section 28, RA 9513 — statutory basis; sources and permissible uses
- DC2009-05-0008, SEC. 32–34 (25 May 2009) — Base IRR: establishes RETF as special account in any GFI; enumerates six exclusive purposes and eight funding sources; authorizes grants, loans, equity, guarantees, insurance, and counterpart fund arrangements; directed DOE/PCSO/PAGCOR/DENR/DBM to formulate transmittal mechanism within 6 months [DC2009-05-0008, SEC. 32–34, 2009-05-25]
- DO2018-10-0018 (23 October 2018) — DOE Department Order prescribing the internal guidelines governing the collection, administration, and utilization of the RETF [NREP 2020-2040, p.8, 2022]
- DC2022-06-0018 (10 June 2022) — “RETF Guidelines”: prescribes specific procedures for fund sourcing, billing, collection, remittance, accounting, and audit; mandates the RETF Operations Manual within 3 months [DC2022-06-0018, §1–§4, 2022-06-10]
Purposes
The RETF shall be used exclusively for [NREP 2020-2040, p.8, 2022]:
- Finance research, development, demonstration, and promotion of widespread RE use for power and non-power applications
- Provide funding to qualified institutions engaged in RE studies, and scholarships and fellowships for energy studies
- Support the development and operation of new RE resources
- Conduct nationwide RE resource and market assessment studies for power and non-power applications
- Propagate RE knowledge by accrediting, tapping, training, and providing benefits to institutions to promote RE at national and local level
- Fund other activities necessary to attain the objectives of the RE Act
Funding Sources and Instruments
Statutory funding sources under Section 28, RA 9513 [RA 9513, Section 28, 2008]:
| Source | Rate |
|---|---|
| Emission fees from generating facilities (RA 8749 — Clean Air Act) | All proceeds |
| Philippine Charity Sweepstakes Office (PCSO) net annual income | 1.5% |
| Philippine Amusement and Gaming Corporation (PAGCOR) net annual income | 1.5% |
| PNOC net annual dividends remitted to National Treasury | 1.5% |
| Contributions, grants, and donations (tax deductible to donor) | Variable |
| Government share collected from indigenous non-renewable energy resources | 1.5% of proceeds |
| Revenue generated from RETF utilization | All proceeds |
| Fines and penalties imposed under RA 9513 | All proceeds |
The RETF may be deployed in the form of: grants, loans, equity investments, loan guarantees, insurance, counterpart funds, or other financial arrangements [RA 9513, Section 28, 2008; NREP 2020-2040, p.8, 2022].
RETF Account
The RETF is maintained as a Trust Fund (Fund Cluster 07 — Custodial Funds) in the DOE Books of Accounts, held at the Land Bank of the Philippines (LBP) [DC2022-06-0018, §2(aa), §5, 2022-06-10]:
- Account Number: 3982-1002-31
- Account Name: DOE-Renewable Energy Trust Fund (RETF)
Payment can be made by direct deposit to this account or over-the-counter check payment to the DOE Treasury Division.
Fund Collection Procedures (DC2022-06-0018)
DC2022-06-0018 operationalizes three collection channels:
Channel 1 — RETF Contributors (DENR, PCSO, PAGCOR, PNOC)
| Contributor | Basis | Rate |
|---|---|---|
| DENR-EMB | Total emission fee collections per submitted report | 100% |
| PCSO | Net Income per Statement of Comprehensive Income | 1.5% |
| PAGCOR | Net Income per Statement of Comprehensive Income | 1.5% |
| PNOC | Dividends per Statement of Changes in Equity | 1.5% |
PCSO, PAGCOR, and PNOC must submit required financial statements within 15 days after the Commission on Audit (COA) Annual Audit Report (AAR) publication. REMB-TSMD issues billing statements and coordinates payment. Contributors pay within 15 days of receipt [DC2022-06-0018, §3.2(a), 2022-06-10].
Channel 2 — 1.5% of Government Share from Conventional Energy Service Contractors
Collections deposited by the DOE Treasury Division to the Bureau of the Treasury (BTr) via clearing accounts (BTr–Other than IATF). FS-CERCD submits a schedule of collections by March 15 of the following year; DOE then requests NCA release from DBM [DC2022-06-0018, §3.2(b), 2022-06-10].
Channel 3 — Contributions, Grants, Donations, Fines and Penalties
REMB-TSMD issues Order of Payment; collections deposited to the RETF Account on the next banking day following receipt [DC2022-06-0018, §3.2(c), 2022-06-10].
Revenue/expenditure estimates are consolidated by REMB-TSMD and submitted to the DOE Accounting Division by February 15 each year, using the BP 100-B Form [DC2022-06-0018, §3.1, 2022-06-10].
Operations Manual
DC2022-06-0018 §4 mandated the DOE to issue an RETF Operations Manual within three months of the Circular’s effectivity (i.e., by approximately September 2022), covering qualifications of eligible organizations, types of financial support, institutional structures, and application/approval process [DC2022-06-0018, §4, 2022-06-10]. As of NREP 2020-2040 publication (July 2022), the manual was still under development [NREP 2020-2040, p.39, 2022].
Operational Status (as of NREP 2020-2040)
As of the NREP publication date (July 2022), the RETF was at an early operational stage [NREP 2020-2040, p.39, 2022]:
- Special trust account created
- RETF Operations Manual under development
- DOE coordinating with PCSO, PAGCOR, DENR, and the Department of Budget and Management (DBM) on the collection mechanism for GFI-held funds
Relationship to DOST
The DOE has considered entering into a Memorandum of Agreement with the Department of Science and Technology (DOST) for the full operationalization of the RETF, particularly for the research, development, and demonstration component [PEP 2023-2050 Vol. II, 2023].