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J DEPARTMENT OF ENERGY
me’ J (Kagawaran ng Enerhiya)

SEL Republic of the Philippines
G

DEPARTMENT CIRCULAR NO. _DC2023-I2 - 0038

a

RECLASSIFYING DESIGNATED ESTABLISHMENTS IN THE TRANSPORT
SECTOR, ADJUSTING THEIR THRESHOLD, AND PROVIDING COMPLIANCE
GUIDELINES THEREFOR PURSUANT TO THE ENERGY EFFICIENCY AND
CONSERVATION ACT

WHEREAS, Section 2 of Republic Act (RA) No. RA 7638 or the Department of Energy
(DOE) Act of 1992 states that it is the policy of the State to ensure a continuous,
adequate, and economic supply of energy with the end view of ultimately achieving
self-reliance in the country’s energy requirements;

WHEREAS, the Philippines, being an active and committed member of the
Association of Southeast Asian Nations (ASEAN), subscribes to the ASEAN Plan of
Action for Energy Cooperation (APAEC) 2016-2025, which includes the key strategy
of energy intensity reduction by 20% in 2020 based on 2005 level under the Energy
Efficiency and Conservation program area;

WHEREAS, with the growth and advancement of Micro, Small, and Medium
Enterprises (MSMEs) and in line with the proposed MSME Development Plan 2022-
2027 by the Department of Trade and Industry, MSMEs have a critical role in achieving
a low-carbon future through energy efficiency;

WHEREAS, Section 3 of RA 11285 or the Energy Efficiency and Conservation Act
(EEC Act) provides for the establishment of a framework for introducing and
institutionalizing fundamental policies on energy efficiency and conservation (EEC),
including the promotion of efficient and judicious utilization of energy, increase in the
utilization of energy efficiency and renewable energy technologies, and the delineation
of responsibilities among various government agencies and private entities;

WHEREAS, Section 4 (c) of the EEC Act defines Designated Establishment (DE) as
a private or public entity in the commercial, industrial, transport, power, agriculture,
public works, and other sectors identified by the DOE as energy-intensive industries
based on their annual energy consumption in the previous year or an equivalent
annual index where the amount of consumption is indicated in the EEC Act and subject
to adjustment by the DOE as it deems necessary;
WHEREAS, Section 5 (g) of the EEC Act mandates the DOE to periodically review
and reclassify DEs as defined under the EEC Act and its Implementing Rules and
Regulations (EEC-IRR);

WHEREAS, Section 19 of the EEC Act initially classifies DEs as follows: a) Type 1
DEs are those with an annual energy consumption of 500,000 kilowatt-hours (kWh) to
4,000,000 kWh for the previous year; and b) Type 2 DEs are those with an annual
energy consumption of more than 4,000,000 kWh for the previous year, and provides
that the thresholds for determining Type 1 or Type 2 DEs shall be periodically reviewed
and adjusted, if deemed necessary, by the DOE;

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900
Website: http://www.doe.gov.ph: Email: info@doe.gov.vh

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DC re: Reclassifying DEs in the Transport Sector, Adjusting their Threshold, and Providing Compliance
Guidelines Therefor Pursuant to the EEC Act
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WHEREAS, Section 62 of the EEC-IRR provides that the DE classification applies to
all entities, whether government or private, as classified under the EEC Act, the EEC-
IRR, and other guidelines as may be issued by the DOE;

WHEREAS, Section 64 of the EEC-IRR, among other obligations, directs DEs to
register online with the DOE to submit annual energy consumption reports and annual
energy conservation reports;

WHEREAS, Section 65 of the EEC-IRR mandates the DOE to review, evaluate,
update, and adjust every two (2) years or as often as it may deem necessary the list
of identified DEs. For this purpose, distribution utilities, electric cooperatives,
generating companies, and transmission utilities may be required to submit the lists of
energy-consuming establishments and/or accounts to the DOE;

WHEREAS, RA 11697 or the Electric Vehicle Industry Development Act (EVIDA)
declares that it is the policy of the State, among others, to ensure the country's energy
security and independence by reducing reliance on imported fuel for the Transport
sector, and provide an enabling environment for the development of Electric Vehicles
(EVs) including options for micro-mobility as an attractive and feasible mode of
transport to reduce dependence on fossil fuels;

WHEREAS, Memorandum Circular (MC) No. MC2020-05-0001 or Directing All
Designated Establishments under Commercial, Industrial, and Transport Sectors to
submit Annual Energy Consumption Reports mandates all existing DEs under MC No.
93-03-05 to submit Annual Energy Utilization Report and Annual EEC Report;

WHEREAS, DOE Department Circular (DC) No. DC2022-03-0006 or the Adoption of
Training Regulations and Certification Process for Energy Auditors (EAs) covers the
training regulations developed by the DOE and its partner institutions, the process of
certification of EAs, and recognition of training institutions for EAs;

WHEREAS, DOE DC No. DC2022-04-0013 or the Adoption of Certification Guidelines
for Energy Audit Conducted by Firm, Partnership, Corporation, and Sole
Proprietorship (FPCS) provides the guidelines for the certification of FPCS covering
the assessment, registration, and certification of qualified FPCS which will conduct
energy audits;

WHEREAS, DOE DC No. DC2023-05-0017 or Prescribing the Guidelines on the
Philippine Transport Vehicles Fuel Economy Labeling Program (VFELP) for
Compliance of Vehicle Manufacturers, Importers, Distributors, Dealers, and
Rebuilders covers the mandatory labeling of all transport vehicles;

WHEREAS, DOE DC No. DC2023-05-0016 or Prescribing the Fuel Economy
Performance Rating (FEPR) Guidelines on Road Transport Vehicles under the
Philippine Transport Vehicles Fuel Economy Labeling Program (VFELP) for
Compliance of Vehicle Manufactures, Importers, Distributors, Dealers, and Rebuilders

covers the minimum fuel economy performance rating for transport vehicles set by the
DOE;

WHEREAS, DOE DC No. DC2023-05-0018 or the Adoption of the National EEC Plan
(NEECP) and Roadmap 2023-2050 provides the comprehensive framework and plan

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that institutionalizes EEC in the country across key sectors of the economy in
accordance with the EEC Act; and

WHEREAS, on 17 August 2023, the DOE held a public consultation regarding the
draft DC, which was extended until 31 August 2023 to gather and incorporate feedback
from stakeholders in Luzon, Visayas, and Mindanao.

NOW, THEREFORE, pursuant to its mandate under the EEC Act, the DOE hereby
issues these reclassification and compliance guidelines for DEs in the Transport
Sector under the EEC Act.

Section 1. Scope and Application. This DC shall apply to all DEs under the Transport
Sector.

Section 2. General Policies and Principles. This DC shall cover the enhanced and
continuous implementation of the following items pursuant to the EEC Act, the EEC-
IRR, and other related issuances on policies for DEs in the Transport Sector:

a. Submit their Annual EEC Report and Annual Energy Utilization Report to the
DOE through the identified online submission portal;

. Identify and assign energy efficiency practitioners as required under this DC
and in compliance with the certification requirements of the DOE;

. Implement EEC measures, practices, and projects within their
buildings/facilities, vehicles, and equipment, including the integration of an
energy management system or any similar framework, including those for
transport efficiency; and

d. Submit an energy audit report once every three (3) years.

Section 3. Definition of Terms. For purposes of this DC, the following terms shall be
defined as follows:

a. Annual EEC Report (AEECR) - refers to the EEC plans, programs, activities,
and projects implemented and ongoing including the target value of investment
and savings or improvement in productivity in lieu of energy saving;

. Annual Energy Utilization Report (AEUR) - refers to the utilized and/or
generated energy on a calendar year basis in the business activity area
including the auxiliary service area. AEUR also accounts for steam/hot water
utilization and generation, waste oil, and transportation utilization. AEUR will
establish the baseline average energy consumption of the company as an entity
to which Type of DE it belongs;

. Building Energy Index - refers to the total energy consumed annually by the
building based on the total occupied or net floor area, expressed as energy per
square meter per year;

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. DE Online Submission Portal - refers to the identified online submission portal
for DE on their obligations/requirements under the EEC Act, EEC-IRR and this
DC;

. Energy Efficiency (EE) Practitioner - refers to a Certified Energy Manager
(CEM), Certified Energy Conservation Officer (CECO), or Certified Energy
Auditor (CEA) registered with the DOE;

Energy Usage Index (EUl) - refers to the total energy consumed annually by
the building on the total gross floor area, expressed as energy per square meter
per year;

. Fuel Economy Performance Rating (FEPR) - refers to the distance traveled
against the fuel and/or energy consumed by a transport vehicle;

. Fleet FEPR - refers to the total distance traveled by all vehicles in a fleet over
the total energy consumed expressed as kilometer per liter, mile per gallon,
kilometer per kWh, etc.; and

Transport Sector - refers to the part of the economy that is involved in the
movement of people, goods, and services from one location to another. It
encompasses various modes of transportation, infrastructure, and associated
services that facilitate the mobility of individuals and the transportation of goods.

Section 4. Classification of DEs under the Transport Sector. DEs under the
Transport Sector shall be classified into the following:

a. Single Address DE (SADE) - are those DEs with a building/facility that is located
in a single address identifiable on their legal documents including, but not
limited to, business permits/registrations, lease contracts, and electricity bills,
among others; and

. Consolidated DE (CDE) - are those buildings and facilities that are handled,
managed, and/or overseen by a main/head company or a corporation firm
under an enterprise partnership. To be identified as a CDE, the DE should be
located in another address/location based on its legal document/s.

Whenever a DE has no fixed business location/address and is currently leasing or
renting certain units, floors, or spaces in the building/property/facility, the
building/property/facility management shall be the one responsible for reporting the
consumption of these facilities. Unless stipulated in their existing contract that the
lessee shall assume all government compliance responsibility of the

building/property/facility, then it shall be the DE’s responsibility to report their
consumption.

Nonetheless, it is the responsibility of the DE to ensure that its AEECR and AEUR are
duly submitted to the DOE.

Section 5. Sub-Sectors under the Transport Sector. The DE sub-sectors shall be
classified consistent with the Philippine Standard Industrial Classification (PSIC) of the
Philippine Statistics Authority (PSA). The DOE shall develop specific descriptors to

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ensure a streamlined classification of the sub-sectors. The sub-sector descriptors shall
be accessible and reflected in the DE Online Submission Portal. Any updates that will
be made by the PSA on the PSIC shall be adopted accordingly by this DC and all
subsequent issuances related to DEs.

Section 6. Required Forms and Templates. All DEs covered under this DC shall
submit their AEECR and AEUR through the DE Online Submission Portal of the DOE.
Updating of these forms and templates shall be communicated to all concerned
entities through the issuance of Implementing Guidelines (IG) as provided under
Section 25 of this DC.

Section 7. Threshold. DEs in the Transport Sector shall follow the typology as
presented below:

Typology Definition

Other DEs DEs with an annual energy consumption of 50,000 kWh equivalent and below for the
previous year

Type 1 DEs with an annual energy consumption of 50,001 kWh equivalent to 500,000 kWh
yP equivatent for the previous year

Type 2 DEs with an annual energy consumption of 500,001 kWh equivalent to 4,000,000
yp kWh equivalent for the previous year

Type 3 DEs with an annual energy consumption of 4,000,001 kWh equivalent or more

A DE with a newly established company shall be allowed to complete the calendar
year (CY) (January 1 — December 31) to establish energy consumption. However,
transfer of ownership/change in business in the same geographic area shall assume
the consumption of the previous owner.

DEs that consumed 50,000 kWh-equivalent and below are encouraged, but not
required, to submit their AEECR and AEUR. Nonetheless, those DEs which have
reduced their energy consumption to 50,000 kWh equivalent and below from a higher
consumption based on their submission are encouraged to continuously utilize the DE
Online Submission Portal.

Section 8. Rules on the Change of Typology. A change of typology shall only occur
based on the following scenarios:

a. Downgrading of Typology - A DE shifts to a lower typology from a higher
typology based on its recently submitted AEECR and AEUR.

b. Upgrading of Typology - A DE shifts to a higher typology from a lower typology
based on its recently submitted AEECR and AEUR.

A change of typology may occur every year based on the compliance of the DE with
the submission of its annual energy consumption report to the DOE. The DE Online
Submission Portal shall automatically update the typology of the DE.

In any case that the change of typology affects the compliance requirement of the DE,
the higher obligations shall apply. This shall include the identification of the EE
Practitioner and the conduct of an energy audit.

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Section 9. Identification of Significant Energy Use. DEs shall identify all Significant
Energy Use (SEV) in their facility/building based on their operation/nature of business.
This shall cover areas that have processes, outputs, or any activity that has significant
energy consumption.

Section 10. Identification of Fuel Consuming Activities. DEs shall identify all
energy-intensive activity areas in the facility/building. This shall cover areas that have
processes, outputs, or any commercial activity that has significant energy
consumption. The identified activity area shall be the basis of the DEs report in the DE
Online Submission Portal.

Section 11. Calculation of Annual Energy Consumption. Energy consumption shall
be measured based on the annual total energy used for electricity and petroleum
products and shall use kilowatt-hours (kWh) equivalent as measurement. Energy
consumption shall be computed based on the following:

(a) Total Annual Fuel Consumption (in kWh equivalent)
+ (6) Total Annual Electricity Consumption (in kWh equivalent
(c) Annual Total Energy Consumption (in kWh equivalent)

Where: ,
(a) based on the petroleum products consumed from January 1 to December 31
(b) based on the electricity consumption from January 1 to December 31

(c) based on the total energy consumption for the target year

Conversion factors, including calorific values, shall follow the latest published
information by the DOE.

Section 12. Establishment of FEPR and Fleet FEPR. DEs shall establish their
annual Vehicle Fuel Efficiency (VFE) and Fleet Fuel Efficiency (FFE) based on their
submission to the DOE. VFE and FFE shall be calculated within the DE Online
Submission Portal based on their submitted information. VFE shall be computed
according to this formula:

Total Accumulated distance travelled for the CY (a) Fuel E P ;
re
Total Accumulated Consumed Fuel for the CY (b) uet Economy Performance Rating (c)

Where:

(a) Refers to the accumulated distance traveled for the Calendar Year expressed
in the prevailing sectoral unit of measurement (km, miles, nautical miles, etc.)
Refers to the total accumulated consumed energy for the Calendar Year
expressed in the prevailing sectoral unit of measurement (liters, galton, metric
tons, kWh, etc.)

(c) Fuel Economy Performance Rating expressed in unit of distance over unit of
energy consumption.

Based on the compliance of the DEs, the DOE will eventually develop and establish
the Sectoral and Sub-Sectoral Minimum Energy Performance. DEs are required to
report a per-vehicle consumption for the entire year covering its mileage for the said
period. The submission shall cover the following information:

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a. Manufacturer g. Vehicle Mileage

b. Make h. Transmission, if applicable

c. Model i. Passenger Capacity, if applicable

d. Model Year j. Load Capacity, if applicable

e. Type k. Maximum Power, for electric vehicles

f. Fuel Type
Section 13. Establishment of Building Energy Index (BE]). For other facilities (e.g.,
office buildings, terminals, ports, etc.), an annual Energy Use Intensity shall be
established by the online system on a per DE basis. Sectoral and sub-sectoral

Minimum Energy Performance shall be developed and issued by the DOE in the
future.

A load and energy consumption profile shall be published to develop energy indices
to track and compare annual energy consumption based on the following computation:

(TBEC — NAC — DCEC) AWH

BEI = (GFA — CPA ~ DCA) = (GLA x FVR) ~ WOH

BE] Total energy consumed in a building in a year, expressed as
kWh per gross floor area (m2)

Total year building energy consumption (kWh/year)

Annual energy consumption of non-airconditioned areas
(parking, storage areas, etc.) (kWh/year)

Data center energy consumption (kWh/year)

Gross floor area (m?)

Car park area (m?)

Datacenter area (m?)

Gross lettable area (m?)

Floor vacancy rate (%)

Average weekly operating hours (hours/week)

Weighted weekly operating hours (hours/week)

TBEC
NAC

DCEC
GFA
CPA
DCA
GLA
FVR
AWH
WOH

The DOE shall also refer to the applicable provisions of DC No. DC2020-12-0026 or
the Adoption of the Guidelines on Energy Conserving Design of Buildings in the
Establishment of the BE] under this Sector.

Section 14. Compliance of the Electric Vehicles Industry. Entities managing and/or
operating fleets of EV and/or EV charging stations (EVCS) shall also be covered by
the requirements under this DC. These entities shall also ensure their EVs and EVCS

are compliant with the requirements under the issuances issued pursuant to the
EVIDA.

Section 15. Energy Efficiency (EE) Practitioner. Following the typology of the
Transport Sector, EE Practitioners should lead the energy management systems of

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the company. EE Practitioners shall be identified and assigned based on the following
typology:

| Typology | Required EE Practitioner Recommended Support Staff
[None tC ssC‘“‘CSCS*s:SsSC*S

. 0
Certified Energy Manager (CEM) Certified Energy Conservation Officer (CECO)

CEM and CECO

The certification process shall follow the provisions under DC No. DC2022-03-0007 or
the Adoption of Training Regulations for the Certification of Energy Conservation
Officers (ECOs) and DC No. DC2022-03-0008 or the Adoption of Training Regulations
and Prescribing Certification Process for Training Institutions and Energy Managers
(EMs).

Upon issuance of this DC, DEs are mandated to identify the required EE Practitioner
who shall comply with the existing requirements of the issued policies on the
Certification of EE Practitioners. Also, DEs shall ensure that all trainings are provided
by a DOE Recognized Training Institution (RTI) before the next compliance period.

DEs with an existing Certified EE Practitioner inconsistent with the required EE
Practitioner based on the typology shall, through an endorsement letter, apply for the
reclassification of the certificate of their existing EE Practitioner with the DOE.

Section 16. identification of Activity Area. DEs shall identify all energy-intensive
activity areas in the facility/building. This shall cover areas that have processes,
outputs, or any commercial activity that has significant energy consumption. The
identified activity area shall be the basis of the DEs report in the DE Online Submission
Portal.

Section 17. DE Online Submission Portal. All DEs, through their CEM or CECO,
are mandated to comply with the submission of their AEECR and AEUR in CY format
(January to December) and their energy audit reports through the DE Online
Submission Portal. DEs identified under a CDE shall submit their AEECR and AEUR
on a per building and/or facility.

In the event of force majeure and/or system downtime and maintenance of the DE
Online Submission Portal, the DOE will issue an advisory requiring all DEs to submit
their AEECR and AEUR through an alternative platform. Nonetheless, unless
otherwise advised, all submissions should only be made through the DE Online
Submission Portal. Any submissions made outside the system will not be deemed as
a form of compliance with the EEC Act.

The DOE will issue a User Manual to help DEs, through their CEM or CECO, to easily
navigate the DE Online Submission Portal. This User Manual will be periodically
updated by the DOE as the need arises.

Section 18. Implementation of Energy Management System. Pursuant to Section
66 of the EEC-IRR, DEs shall integrate an energy management system policy into
their business operations based on ISO 50001 or any similar framework applicable to
the transport sector.

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Section 19. Energy Audit Report. DEs shall submit their Energy Audit Reports to the
DOE during the first year of their compliance and every three (3) years thereafter. DEs
under Types 1, 2, and 3 are mandated fo subject themselves to the conduct of energy
audits while Other Types are encouraged to conduct an energy audit.

The submission of Energy Audit Report and its required level shall be based on the
following conditions:

DE Typology
Type2 | Typet | otherDes |

Compliant with the submission of onte , ete et n Level 1 Enooeraged,
AEECR and AEUR and with Level 1 then Level 2 Ener Energy Audit required. to
Energy Audit Report submitted to the Audit on the gy until further ocr duct a
DE Online Submission Portal during succeedin guidance by Level 1 Ener

the previous compliance period g the DOE gy

compliances Audit

. : ws Encouraged,
Compliant with the submission of Level 2 Energy Audit Level 1 but not
AEECR and AEUR and with Level 2 Energy Audit
" : on the next submission : required, to
Energy Audit Report submitted to the . until further
DE Online Submission Portal during and every succeeding guidance by conduct a
the previous compliance period compliance the DOE Level 1 Energy

Audit

. . . Encouraged
Compliant with the Submission of ; Level 1 ,
AEEGR and AEUR but no Energy | Level 2 Energy Audit | enero, audit but not

Audit Report in the DE Online Oo rg next submission until further pena to

Submission Portal during the previous O pal liance ing guidance by L vel 4 5 a

compliance period P the DOE eve Au dit

Level 1 Encouraged,
age : but not
Newly covered entities (those that are Energy Audit .
consuming less than 100,000 kWh until further baie to
equivalent per year) guidance by L evel 1 vet on
the DOE Audit

Encouraged,
: Level 1 but not
Not Compliant with EEC Act during the ay a2 energy Aut eet dah ait required, to
previous compliance period ory pliance g guidance by conduct a
y Level 1 Energy
the DOE Audit

For Type 2 and 3 DEs, energy audits conducted by an in-house CEA shall be subject
to the validation of either a DOE Registered or Certified Energy Service Company
(ESCO), CEA, or a registered FPCS for energy audit verification. The validation shall
ensure the veracity and reliability of the audit findings and recommendations,
promoting transparency and credibility.

Type 1 DEs shall be required to conduct a Level 1 or walkthrough energy audit on their
facilities with a focus on the identified SEU. For Type 1 DEs, energy audits may be
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conducted by an in-house Energy Auditor and shall be accepted by the DOE, subject
to evaluation.

Other DEs are encouraged but are not required to conduct an energy audit on their
facilities. In any event, a Level 1 energy audit shall be encouraged for their building
and/or facility.

Conduct of cross-audit among DEs or within subsidiaries of an entity shall be allowed
by the DOE: Provided That, transparency and professionalism shall be observed by
the CEA.

DEs that have already submitted an Energy Audit Report shall be considered
compliant for the next three (3) years from the date of submission.

Consistent with Section 9 of this DC, any change in typology affecting the compliance
requirement of the DE, the higher obligations shall apply. Given the nature of the
validity of the Energy Audit Report once submitted, the highest typology that will occur
within the time frame of three (3) years upon submission shall determine whether the
DE will conduct a Level 1 or Level 2 energy audit in its next compliance.

A Certification and/or Project Agreement shall be included as an annex in the Energy
Audit Report should the DE decide to conduct a cross-audit or have their own report
validated by a CEA, an ESCO, or a FPCS.

Section 20. Monitoring, Verification, Enforcement, and Post-evaluation. Upon the
submission of the AEECR and AEUR, the DOE may conduct a post-evaluation to
ensure the veracity and accuracy of the information provided in the report. The post-
evaluation shall be based on the issued policy on the visitorial and on-site inspection
of the DOE to DEs. The conduct of the on-site inspection shall cover the following:

a. Inspection of all energy-consuming facilities;

b. Review, evaluation, and validation of energy management systems, energy
consumption reports, and other related documents regarding the compliance
of DEs with the EEC Act; and

. Conduct meetings and/or orientation to the DE regarding other relevant
information on the implementation of EEC in the facility.

Section 21. Feedback Mechanism. The DOE shall develop within the DE Online
Submission Portal a feedback mechanism on the submitted repori. This shall include
the historical consumption of the DE, a comparison of the facility’s BEI/FEPR, and
other relevant information. The DOE may also conduct inquiries through email or
during the conduct of monitoring and verification activities.

Section 22. Roles of Electric Cooperatives (ECs) and Distribution Utilities (DUs).
ECs and DUs shall submit a “List of DEs” which shall contain the following information:

a. Client’s Name;

b. Typology;

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. Electricity consumption of the DE for the previous CY broken down into
monthly consumption;

d. Address; and
e. Contact Details (email, contact number, etc.).

The above information shall be submitted to the DOE, through the Electric Power
Industry Management Bureau (EPIMB), pursuant to DC No. DC2010-03-0003 or
Directing All Power Generation Companies, Transmission Service Provider, and All
Distribution Utilities to Ensure Adequate and Reliable Electric Power Supply in the
Country and its subsequent issuances. The EPIMB shall include the submission of
ECs and DUs in their annual reportorial requirements pursuant to existing policies of
the DOE. EPIMB shall regularly update the Energy Utilization Management Bureau
(EUMB) on the submitted information from said stakeholders.

Section 23. Roles of Oil Refiners, Bulk Distributors, Bunker Traders, and
Marketers. All oil refiners, bulk distributors, bunker traders, and marketers shall submit
a “List of DEs” which shall contain the following information:

a. Client’s name;
b. Typology;

. The amount of oil purchased by the client for the previous CY broken down
into monthly sales;

.. Type of Business;
e. Address; and
f. Contact details (email, contact number, etc.).

The above information shall be submitted to the DOE, through the Oil Industry
Management Bureau (OIMB) pursuant to DC No. DC2021-09-0029 or Guidelines on
Notices and Reportorial Requirements Pursuant to the Downstream Oil Industry
Deregulation Act and subsequent issuances related to this. The OIMB shail include
the submission of oil refiners, bulk distributors, bunker traders, and marketers in their
annual reportorial requirements pursuant to existing policies by the DOE. The OIMB
shall regularly update the EUMB on the submitted information from said stakeholders.

Section 24. Coordination with Relevant National Government Agencies (NGAs),
Offices, and Sectoral Associations. The DOE, through EUMB, shall coordinate with
relevant NGAs, offices and sectoral associations to identify energy-intensive entities
and harmonize policies under the EEC Act with existing rules and regulations
governing the Transportation Sector. The coordination shall be specifically made with
the Department of Transportation (DOTr) for Railway transport, the Land
Transportation Franchising and Regulatory Board (LTFRB) for Land transport, the
Maritime Industry Authority (MARINA) for Maritime Industry, the Civil Aviation Authority
of the Philippines (CAAP) for Air Transport, and transport cooperatives. Likewise,

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EUMB shall coordinate with transport associations for the successful implementation
of this DC.

Section 25. Information Dissemination and Subsequent Guidance. The EUMB-
EPMPD shall conduct nationwide activities to provide comprehensive orientation and
workshops to stakeholders regarding their compliance with the EEC Act, the EEC-
IRR, and all subsequent issuances.

Further to this, EUMB may issue IG and Advisories, as deemed necessary, for a more
streamlined and efficient implementation of this DC: Provided That, an IG may only be
issued after public consultation and shall take effect after fifteen (15) days from its
publication.

Section 26. Confidentiality. All submitted information and data shall be treated with
utmost confidentiality and may be used for monitoring, planning, and policy
development of the DOE. No information and data shall be used other than those
provided herein and shall comply with the provisions of the Data Privacy Act of 2012
to protect and limit the disclosure of confidential or commercially sensitive information
unless allowed by the concerned party or when required by law, rules, and regulations.

Section 27. Prohibited Acts. Any person or entity who violates the following shall be
subject to the penalties under Section 28 of this DC. For the purposes of this DC, the
following shall be deemed as Prohibited Acts:

a. Failure to submit their AEECR and AEUR to the DOE;

b. Forge, alter, counterfeit, or falsely make any submission for the purpose of
compliance.

. Failure to comply with the obligations under Section 66 of the EEC-IRR;

. Failure to appoint the proper EE Practitioners; and

. Failure to submit to monitoring, verification, enforcement, and post-evaluation
activities.

Section 28. Fines and Penalties. Pursuant to Section 32 of the EEC Act in relation
to Section 83 of the EEC-IRR, and without prejudice to fines and penalties, including

criminal, under applicable laws, the fines and penalties for violations of the prohibited
acts outlined in Section 27 of this DC are as follows:

Penalties and Fines (in PhP)

100,000.00 500,000.00 1,000,000.00

Failure to submit their 3" Offense with endorsement to
AEECR and AEUR to the 1st Offense 2nd Offense Local Government Units for
Administrative Sanctions
of ovo nuke any 3” Offense with endorsement to
A 1% Offense 2nd Offense Local Government Units for
submission for the -. : :
. Administrative Sanctions

=== dc2023-12-0038-pages-13.ppm ===
DC re: Reclassifying DEs in the Transport Sector, Adjusting their Threshold, and Providing Compliance
Guidelines Therefor Pursuant to the EEC Act

Page 13 of 13
Violati Penalties and Fines (in PhP)
foration 700,000.00 500,000.00 1,000,000.00

3% Offense with endorsement to
Local Government Units for
Administrative Sanctions

3 Offense with endorsement to
Local Government Units for
Administrative Sanctions

Failure to comply with
the obligations under ' d
Section 66 of the EEC- 1* Offense 2m Offense
IRR
Failure to appoint the t nd
proper EE Practitioners 2n' Offense
Failure to submit to

1% Offense 2nd Offense

monitoring, verification,

enforcement, and post-
evaluation

Section 29. Transitory Clause. Upon issuance of this DC, DEs are given six (6)

months or before the deadline of the next compliance. period, which is due on every

15" of April whichever comes first, to comply with the following:

3 Offense with endorsement to
Local Government Units for
Administrative Sanctions

a. Submit an AEECR and AEUR to the DOE through the DE Online Submission
Portal;

b. Identify an EE Practitioner and have them duly certified by the DOE; and
c. Submit an Energy Audit Report to the DOE.

Section 30. Repealing Clause. The provisions of other circulars, specifically MC No.
MC2020-05-0001 and other orders, issuances, rules, and regulations, which are
inconsistent with the provisions of this DC, are hereby repealed, amended, modified,
or superseded accordingly.

Section 31. Separability Clause. If for any reason, any section or provision of this
DC is declared unconstitutional or contrary to statutes or relevant IRR, the other parts

or provisions hereof that are not affected thereby shall continue to be in full force and
effect.

Section 32. Effectivity. This DC shall take effect fifteen days (15) after its publication
in at least two (2) newspapers of general circulation. A copy of this DC shall be filed

with the University of the Philippines Law Center — Office of the National Administrative
Register.

Issued on ___ December 2023 at the DOE, Energy Center, Rizal Drive cor. 34th
Street, Bonifacio Global City, Taguig City.

RAPHAEL P.M. LOTILLA &.
Secretary Ea

BEC 18 2023