=== dc2018-04-0013-pages-01.ppm === Republic of the Philippines DEPARTMENT OF ENERGY (Kagawaran ng Enerhiya) DEPARTMENT CIRCULARNO, OC2al€ - 04. 00/3 ys IMPLEMENTING RULES AND REGULATIONS OF EXECUTIVE ORDER NO. 30, SERIES OF 2017, CREATING THE ENERGY INVESTMENT COORDINATING COUNCIL IN ORDER TO STREAMLINE THE REGULATORY PROCEDURES AFFECTING ENERGY PROJECTS Pursuant to Section 5 of Executive Order No. (EO) 30 dated 28 June 2017 and consistent with Republic Act No. (RA) 7638, otherwise known as the “Department of Energy (DOE) Act of 1992,” and RA 9136, otherwise known as the “Electric Power Industry Reform Act of 2001,” the following rules and regulations are hereby promulgated and adopted: PARTI GENERAL PROVISIONS RULE 1 - TITLE These rules and regulations shall be referred to as the Implementing Rules and Regulations (IRR) of EO 30 otherwise known as “Creating the Energy Investment Coordinating Council to Streamline the Regulatory Procedures Affecting Energy Projects.” RULE 2 - COVERAGE AND SCOPE 2.1 This IRR shall govern the permitting process for the approval and implementation of logical, systematic, organized and speedy issuance of permits and clearances for Energy Projects of National Significance (EPNS). 2.2. This IRR shall provide general rules, regulations, and guidelines for the: (a) Establishment of a framework for the speedy and systematic issuance of permits and clearances to expedite the development of significantly needed Energy Projects and infrastructures; (b) Adoption of a streamlined and simplified permitting process that shall serve as a guideline to all concerned agencies and investors, and direction for investments in Energy Projects; and (c) Resolution and clarification of disputes and issues affecting processes and issuances of permits and clearances necessary for the timely implementation of Energy Projects. Energy Center, Riza] Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632 Tel. No. (Trunkline) (632) 479-2900; Page lof 5 Website: httm://www.doe.gov.ph: E-mail]: info@doe.zov p} === dc2018-04-0013-pages-02.ppm === RULE 3 —- OBJECTIVES This IRR shall rationalize and streamline the process of permitting and licensing of Energy Projects to ensure its timely implementation. In particular, this IRR shall: (a) Enable a transparent and a more responsive permitting process to meet growing energy demands and needs of the country in support to its socio-economic growth and development; (b) Simplify the permitting process of concerned agencies for the expeditious development of EPNS, which includes but are not limited to the removal of redundant requirements and procedures, setting of a standardized requirements and forms, etc.; and (c) Identify the scope of coverage of the process in consideration of the role of other concerned agencies involved in the permitting process. RULE 4 - DEFINITION OF TERMS For the purposes of this IRR, the following terms shall be defined as follows: (a) Certificate of EPNS (CEPNS) shall refer to the certificate issued by the DOE to facilitate and fast track the issuance of permits and clearances as requirements from the different concerned government agencies and instrumentalities for energy projects. (b) Energy Investment Coordinating Council (EICC) refers to the Council created under EO 30 that will spearhead and coordinate national government efforts to harmonize integrate and streamline regulatory processes, requirements, and forms relevant to the development of EPNS. (c) Energy Projects as defined under RA 7638 refer to both new and existing activities or projects relative to the exploration, extraction, production, importation-exportation, processing, transportation, marketing, distribution, utilization, conservation, stockpiling, or storage of all forms of energy products and resources for both new and existing. (d) Philippine Energy Plan (PEP) refers to the plan issued by the DOE that embodies the country’s major energy policies, plans, programs and projects in consideration of international energy frameworks, commitments and current energy trends and developments, as well as the action agenda to respond to emerging energy challenges and issues. PART II ENERGY PROJECTS OF NATIONAL SIGNIFICANCE RULE 5 —- SCOPE OF EPNS EPNS are major Energy Projects for power generation, transmission, and/or ancillary services including those required to maintain grid stability and security for on and off-grid areas, identified and endorsed by the DOE as “projects of national significance” that are in consonance with the policy thrusts and specific goals of the PEP, and which possess any of the following attributes: Page 20f 5 === dc2018-04-0013-pages-03.ppm === (a) It must have a significant capital investment of PhP3.5 billion; (b) It must have a significant contribution to the country’s economic development: Provided, That, this pertains to the potential of the project to promote greater access to energy and energy supply security of the country: (c) It must have a significant consequential economic impact: Provided, That, this pertains to the potential of the project to generate jobs, employment and increase revenues for the government, among others; (d) It must have a significant potential contribution to the country’s balance of payment: Provided, That, this pertains to the potential of the project to contribute to the inflow of foreign investment capital; (e) It must have a significant impact on the environment: Provided, That, this pertains to the potential of the project to contribute to sustainability with minimal adverse effects to the environment; (f) It must have a significant complex technical processes and/or engineering designs: Provided, That, these refer to projects involving newly developed or pioneering energy systems and/or technologies; and, (g) It must have a significant infrastructure requirement: Provided, That, the project has associated infrastructure necessary for the delivery of energy services and/or supply such as transmission and distribution networks. PART III GENERAL FRAMEWORK FOR THE PROCESSING OF EPNS RULE 6 —- RIGHTS UNDER CEPNS 6.1 The CEPNS entitles the project to a processing time of 30-working day period upon submission of complete documentary requirements to the relevant agencies in the permitting process of Energy Projects. Towards this end, all national government agencies, instrumentalities, Local Government Units (LGUs) and government-owned and controlled corporations (GOCCs) involved in the processing and approval of permits and licenses are hereby directed, with respect to the permits and processes within their jurisdiction, to act upon applications for permits with CEPNS within 30-working days from submission of complete documentary requirements. Said period should be sufficient for each agency to determine whether such project is compliant with all the requirements set by existing laws, rules and regulations, including the general principle of protecting public interest and national security. The CEPNS entitles the project to be processed by accordingly, without awaiting the action of other government agencies involved in the processing if such action is a precondition or a requirement for processing. Forthwith, the processing government agency shall act on the presumption that as holder of the CEPNS, the relevant permits from other government agencies had already been issued. Such presumption extends only insofar as the permitting process is concerned. Government agencies retain the right to enforce compliance with existing laws, rules and regulations within their jurisdiction. Page 3 of S === dc2018-04-0013-pages-04.ppm === 6.4 6.5 On the assumption that the submitted requirements are complete in substance and form, the action to be taken for CEPNS must not exceed 30-working days. Failure to make a decision within the specified time will result in the issuance of the relevant permit within five (5) working days after the lapse of the 30-working day period. Action or decision of government agency covers approval or denial. If the action is denial, the government agency must issue a written explanation explicitly providing the reasons or grounds thereof to the CEPNS holder. Upon the determination of any defect or lapses in substance and form of the submitted documents, the project proponent shall be notified and will be given appropriate time to take the necessary actions. During this reckoning period, the provision in Rule 6.3 shall not take into effect. The rights under this Rule extends to associated infrastructure of the project with CEPNS. RULE 7 —- BASELINES IN THE PROCESSING OF EPNS Fol 73 7.4 To ensure compliance under Rule 6, the EICC and/or other government agencies including local government units (LGUs), government owned and controlled corporations(GOCCs) and instrumentalities shall ensure that their respective timelines are adjusted accordingly. For this purpose, said government agencies are directed to submit a streamlined procedure relative to the processing of Energy Projects to the EICC within a year from the effectivity of EO 30. Such submission shall serve as the baseline for processing of CEPNS. Attached is the list of documentary requirements and permits issued by all relevant government agencies as Annex A. No deviation from the baselines shall be allowed except when absolutely necessary either to enable an agency to comply with a specific statutory directive or to avoid prejudicing the public interest. All regulations and procedures taken up in EICC, which deviate from such baselines with justification thereof, shall be included in the report of the EICC to the Office of the President. The EICC shall ensure that the revised guidelines and process flows including relevant information thereon submitted under this Rule are published and made available to the public through the EICC website and such other means to ensure greater public availability. The EICC shall continue to monitor compliance of all government agencies to the baselines for subsequent laws, rules and regulations for the processing and approval of permits and licenses. As a result, the EICC shall regularly update guidelines and process flows including relevant information thereon to ensure publication and public availability. PART IV FINAL PROVISIONS RULE 8 —- REPORTORIAL REQUIREMENTS All applicants and/or energy project proponents issued with CEPNS shall regularly submit status report of their application for permits with the different government agencies and instrumentalities to the EICC for purposes of monitoring, either weekly, biweekly or monthly as may be deemed necessary by the applicants/proponents. Such report shall also serve as the Page 4 of 5 === dc2018-04-0013-pages-05.ppm === basis for the EICC to follow up or call the attention of the concerned agencies not yet issuing permits or rendering any decision on the application. RULE 9 —- SEPARABILITY CLAUSE If for any reason, any part or provision of this IRR shall be held unconstitutional or declared contrary to law, other parts or provisions not affected thereby shall continue to be in full force and in effect. RULE 10 —- REPEALING CLAUSE All other rules, regulation and issuances or parts thereof, which are inconsistent with this IRR, are hereby repealed or modified accordingly. RULE 11 -EFFECTIVITY CLAUSE This IRR shall take effect after 15 days from the date of publication in a newspaper of general circulation or Official Gazette and after the Office of the National Administrative Registrar (ONAR), U.P. Law Center, University of the Philippines, Diliman, Quezon City has been provided copies hereof. Signed at DOE, Energy Center, Rizal Drive, Bonifacio Global City, Taguig City on 2018. SIGNED AND APPROVED: e \sUFONSO ! CUSI DOE Secretary\and EICC Chairperson are Republic of the Philippines 3 feet DOE-AGC-18009045 U).0L.004)/ QM APR25 2018 Page 5 of 5 === dc2018-04-0013-pages-06.ppm === Loca! Government Unit ANNEX A: REQUIREMENTS FROM THE DIFFERENT GOVERNMENT AGENCIES AND INSTRUMENTALITIES Government Agency/Office Requirement/Document Registration Requirements wre a. * Registration of Corporations and Partnerships Secunties and Exchange Commission © Registration of Foreign Corporations * Registration of Business Name for Single Department of Trade and industry Proprietorship Cooperatve Development Authority * Registration for Cooperatives ¢ Barangay Clearance for Business Permit Purposes * Municipal / Sanitary Permit * Municipal / City Business Permit * Building Permits / Civil / Structural Permits e Locational clearance/business permit in the localities where the business will be established Tax Identification Number © Certificate of Registration * Application for Authority to Use Computerized Accounting System or Components Thereot/ Loose- Leaf Books of Accounts * Applicetion for Registration Information Update This és also where books of accounts and authority to print are registered. ; ; ¢ Employer Registration Soctal Security System AE SEEN Bs * Specimen Signature Card « Employer Data Record * Member's Data Form Note : Membership for local employees onty * Evaluation Clearance — Fire Safety Permit « Member's Data Form e Remittance Form Note - Membership Registration for local employees onl e Alien Employment Permit Sureau of interna! Revenue Philippine Health insurance Corp. Sureou of Fire Protection Home Mutual Development Fund Department of Labor and Employment Philippine Economic Zone Authority ¢ Permit to locate (if applicable} * Registration with other Investment Promotion Agencies for availing of incentives (for Ecozone business locators only} B : i ng Pilipi * Registration of Foreign investments for Purposes of angko Sentral ng Pilipinas Capital Repatriation and Profit Remittances F ‘ * Locanenal clearance BEES RE LE Lee mney * Business Permit for firms locating in Metro Manila : « Opening of Letter of Credit (L/C) AUOrned Agent Ranks * information sheet for first-time exporters === dc2018-04-0013-pages-07.ppm === Government Agency/Oifice Requirement/Document Regulatory Requirements * Environmental Compliance Certificate * Certificate of Non-Coverage * Wastewater Discharge Permit « Permit to Operate — Air Pollution Source and Control |nstallation * Hazardous Waste Generator ID * Pollution Control Officer Accreditation / Appointment Permit to construct/operate pollution control devices Department of Environmental and Notural Resources Department of Environmentai and Natural Resources — Forest * Special Land Use Permit (SLUP) Management Bureau * Forest Land Use Agreement (FLAg) Department of Agrarian Reform * land Use Conversion Permit : * Certificate of Water Availability National Water Resources Board * Water Permit Application ¢ Philippine VISA * Philippine Special Work Permit * Special Investor's Resident Visa Allen Certification of Registration Bureau of Immigration Certificate of Compliance for generating companies « Registration of Wholesale Aggregators ¢ Certificate of Authority for WESM Metering Service Providers Retail Electricity Suppliers’ License Energy Reguiatory Commission Certificate of Endorsement to SEC for Company Registration with Energy Related Activities « Certificate of Endorsement to BOI for Project Registration to avail incentives under EO 226 Certificate of Accreditation for Natural Gas Vehicles Department of Energy ¢ Registration of Renewable Energy Projects - RE Service/Operating for Developers Certificate of Accreditation for Suppliers/ Manufacturers - Accreditation to Manufacture Biofuels Department of Energy — Oil industry « Certificate of Compliance for Downstream Oil idonagement Bureau Activities * Coal Operating Contract * Petroleum Service Contract « Clearance for Coal, Oil and Gas exploration activities * Cernficate of Compliance for Coa! importation Department of Energy — Renewable Energy Management Bureau Department of Energy — Energy Resource Development Bureau === dc2018-04-0013-pages-08.ppm === Regulatory Requirements * Environmental Compliance Certificate * Certificate of Non-Coverage * Wastewater Discharge Permit « Permit to Operate — Air Pollution Source and Control installation * Hazardous Waste Generator !D * Pollution Control Officer Accreditation / Appointment ¢ Permit to construct/operate pollution control devices Dzpartment of Environmental end Natural Resources Department of Environmental Special Land Use Permit (SLUP) and Naturo! Resources — Forest Management Bureau « Forest Land Use Agreement (FLAg) Department of Agrarian Reform « Land Use Conversion Permit National Water Resources Board Certificate of Water Availability Bureau of immigration Water Permit Application * Philippine VISA « Philippine Special Work Permit e Special Investor's Resident Visa ¢ Alien Cernfication of Registration « Ceroficate of Compliance for generating companies « Registration of Wholesale Aggregators * Certificate of Authority for WESM Metering Service Providers ¢ Retail Electricity Suppliers’ License Energy Regutatory Commission * Cerificate of Endorsement to SEC for Company Registration with Energy Related Activities ¢ Certificate of Endorsement to BOI for Project Registration to avail Incentives under EO 226 ¢ Certificate of Accreditation for Natural Gas Vehicles Department of Energy « Registration of Renewable Energy Projects - RE Service/Operating for Developers - Certificate of Accreditation for Suppliers/ Manufacturers - Accreditation to Manufacture Bicfuels Department of Energy — Renewable Energy Management Bureau « Certificate of Compliance for Downstream Oil Activines Department of Energy — Oil industry Management Bureau *« Coal Operating Contract e Petroleum Service Contract ¢ Clearance for Coal, Oil and Gas exploration activities Cernficate of Compliance for Coal importation Department of Energy — Energy Resource Development Bureau === dc2018-04-0013-pages-09.ppm === Government Agency/Office Department of Energy — Electric Power industry Management Bureau © Cernficate of Endorsement for Power Generation Projects (requirement for ERC’s COC) * Memorandum of Agreement (Establishment of Trust Account for Financial Benefits Accruing from the Electricity Sales of the Power Plant) ¢ Letter of Endorsement to NGCP for the Conduct of the Grid Impact Study Ceroiicate of Accreditation for Energy Service Companies Department af Energy — Energy Utilization Management Bureau Certification Precondition {Free, Prior and informed Consent) National Commission on indigenous Peoples Operational Requirements Board of investments Philippine Ports Authority ¢ Registration for availing of incentives under EO 226 of the Omnibus Investment Code Clearance to Develop Private Port Facility * Permit to Construct Private Port Facility ¢ Payment of wharfage fees/exemption from payment Charter Operations Permit — Permit to Operate Domestic and International Charter Flights (also calléd Foreign Air Carrier's Permit) e License to Possess Explosives ¢ Permit to Unload Explosives from Vessel and Transfer to Destination * Permit to Transport and Move Explosives * Permit to Import Explosives / Explosives Ingredients * Permit to Export Explosives / Explosive Ingredients ¢ Certificate of Accreditation as importer * Giient Profile Registration System /Electronic to Mobile Registration for operation of Customs Bonded Manufacturing Warehous= ¢ Registranon of Customs Bonded Warehouse {on Expansion/Diversification) « Export Declaration (Authority to Load/Certificate of Origin) Cril Aeronautics Board Philippine Nationa! Police — Firearms and Explosives Office Bureau of Customs « General Information Sheet * Audited Financial Statement * Amendment of Anicles of incorporation / Partnership / By- Laws Secunnes and Exchange Commission === dc2018-04-0013-pages-10.ppm === Height Clearance Permit (if applicable) * Aerodome Rating Certificate / Provisional Permit to Operate a Hélideck * Foreign Air Carrier Operations Specifications * Flight entry-Exit Blanket Clearance Crvii Aviation Authority of the Philippines * Notice to Mariners * Special Permit to Dump/Discharge Waste and/or Ciher Matters (Vesseis/Oil Rigs). Government Agency/Office Requirement/Document * Garbage Management Plan and Garbage Record Book * Shipboard Oil Pollution Emergency Plan ¢ Oil Record Book * International Oil Pollution Prevention Certificate * Oil Pollution Prevention Certificate * Oily Water Separator e s Philippine Coast Guard — Maritime Safety Services Philippine Coast Guard — Marine Environmental Protection Command Oily Waste Collector Tank Cleaning Contractor © Oil Spill Dispersant * Oil Spill Boom/Oil Spill Materials * Oil Sorbent Materials ¢ Marpo! Surveyor * Sewage Treatment Plant ¢ Oil Spill Contingency Pian Employment Repart ¢ Contribution Collection List. * Contribution Payment Return. Social Security System Home Mutua! Development Fund ¢ Membership Registration / Remittance Form « Annual Registration Fee © Expanded Withholding Tax Return « Withholding Tax Return on Compensation e Final Withholding Tax Return Fringe Benefits Tax Return ¢ Annual Information Return on Creditable Income Taxes Withheld (Expanded) / Income Payments e Annual Corporate Income Tax Return e Annual information Return for WTC and FWT * Quarterly Corporate income Tax Return * Certificate of No Objection. This is a prerequisite To the application for MARINA Exemption Permit of Toreign-registered rig/vessels. Processing time is approximately 2 to 4 weeks. Bureau of interna! Revenue lighterage Association of the Philippines ¢ Audited Financial Statement, ITR, etc.; * Régistration of business/expansion for incentives Philippine Economic Zone Authority === dc2018-04-0013-pages-11.ppm === “Oil, Gas, Coal Solar, Hydro, Geothermal, Ocean, Wind | Biomass Geothermal, Ocean, Wind Biomass REQUIREMENTS FOR UPSTREAM ENERGY PROJECTS Pre-Development Phase ois Cordce Contract, Coal Operating Contract, Notice to Proceed IRENEWABLE ENERGY PROJECT= = -RE Service Contract -Biomass Operating “Solar, Hydro, j Contract lant Use Conversion -Land Use Conversion Se icriviertal Compliance Certificate (ECC), Special Land Use Permit (SLUP), Forest Land Use Agreement aoa — “ECC. SLUP- | FLAg, etc. -ECC, SLUP, FLAg, etc. Endonetant -Sanggunian mes an Tpcsouton -Endorsement -Sanggunian | Bayan Resolution | 1 Certicata of Non- "-CNO/CP : Syste’ mipact _ Overlap (CNO)/Certificate of Precondition (CP) | Certificate of Water Availability/CWP Water Permit “CNOICP Project Prose Study (SIS), Registration -Distribution Utility for Distribution | Impact Study (DIS - SIS, DU (DIS) -Project Registration === dc2018-04-0013-pages-12.ppm === REQUIREMENTS FOR DOWNSTREAM ENERGY PROJECTS Commercial Phase a -CUIREMENTS : i AIEEE: LE nag eRe, ida ae eget st s! zs Power Plant Declaration of “Certificate of -Ilmportation | Project Commerciality Confirmation of -“*RE Dev’t. Service Contract - *Biomass Operating | Contract (For Biomass Project) | -Application for | Conversion *(If RE Project ] eneaaies Energy Payment Agreement (REPA)} Slrenantesion Certificate of Service Compliance (COC) Application - -Feed-In Tariff (FIT) Eligibilit Power Plant Project