# DC2022-06-0018 — Adopting the Guidelines and Procedures in the Fund Sourcing, Accounting, and Audit of the Renewable Energy Trust Fund **Full title:** Adopting the Guidelines and Procedures in the Fund Sourcing, Accounting, and Audit of Renewable Energy Trust Fund Pursuant to Section 28 of the Renewable Energy Act of 2008 **Issued by:** Department of Energy **Date:** June 10, 2022 **Signed by:** [Secretary — name illegible in OCR; Lotilla appointed Aug 2022, predecessor Rafael Lotilla not yet — likely Cusi] **Effectivity:** 15 days after publication in two newspapers of general circulation **Legal basis:** - RA 9513 §28 — statutory RETF mandate - DC2009-05-0008 §§32–34 (Rule 11) — RETF provisions in RA 9513 IRR - DO2018-10-0018 — RETF operationalization guidelines - SO2019-01-0003 — creation of RETF Committee (RETFC) **Repeals:** Prior issuances inconsistent with this Circular --- ## WHEREAS Clauses (Preamble) - RA 9513 §28 mandated establishment of the RETF to enhance RE development and utilization - DC2009-05-0008 §32 (Rule 11) set the six permissible uses of RETF - DC2009-05-0008 §§33–34 provided general guidelines on fund utilization and sources - DO2018-10-0018 (23 Oct 2018) governed collection, administration, and utilization of RETF - SO2019-01-0003 (11 Jan 2019) created the RETF Committee (RETFC) and defined its functions - RETFC functions under DO2018-10-0018: select projects (competitive/transparent); recommend approval to Secretary; formulate fund transfer mechanisms; open special trust account; monitor implementation - There is a need to set **specific procedures for fund sourcing, accounting, and audit** (this Circular addresses that gap; disbursement/grant-making is left to the Operations Manual under §4) --- ## Section 1 — Title "Adopting the Guidelines and Procedures in the Fund Sourcing, Accounting, and Audit of the Renewable Energy Trust Fund" — referred to as the **"RETF Guidelines."** --- ## Section 2 — Definitions *(OCR note: definition labels (g), (j), (l), (o), (p), (z) were garbled in the image; corrected by sequence. Definition (s) was entirely illegible/missing in the OCR.)* - **(a) Accounting Division (AD)** — DOE Financial Services division for general accounting; ensures compliance with government rules - **(b) Audit** — objective examination of financial records by competent authorities - **(c) Billing** — process of raising and sending statements of account to RETF Contributors - **(d) Bureau of Internal Revenue (BIR)** — created under Reorganization Act No. 1189 - **(e) Bureau of the Treasury (BTr)** — created under Act No. 1679; principal custodian of National Government financial assets - **(f) BP 100-B Form** — Budget Preparation Form for estimated revenues and expenditures of Off-Budgetary Accounts and Custodial Funds - **(g) Collection** — act of presenting a statement of account and compelling RETF Contributors to remit funds - **(h) Conventional Energy Resource Compliance Division (CERCD)** — DOE Financial Services division for compliance of conventional energy service contractors with financial obligations - **(i) Department of Budget and Management (DBM)** — created under EO No. 25, as amended - **(j) Department of Energy (DOE)** — created under RA 7638; implementing agency of RA 9513; administrator of the RETF under §28 - **(k) Department of Environment and Natural Resources (DENR)** — created under EO 192; implementing agency of RA 8749 (Clean Air Act) - **(l) Disbursement** — range of payment types made from the RETF in a specific period - **(m) Emission Fees** — DENR collections from industrial and motor vehicle discharges under RA 8749 §13 (Emission Charge System) - **(n) Estimated Revenues** — estimated collections from various RETF sources - **(o) Financial Services (FS)** — DOE service implementing fiscal policies; monitors DOE-administered energy funds; provides budget and accounting staff support - **(p) Government Share** — amount due the National Government and LGUs from exploitation, development, and utilization of conventional and RE resources - **(q) Net Annual Dividends** — annual cash dividends declared by the PNOC - **(r) Net Income** — profit after tax and net assistance/subsidy/financial assistance to NGAs/LGUs/NGOs/POs - **(s)** — [§2(s) illegible/missing in OCR] - **(t) Philippine Amusement and Gaming Corporation (PAGCOR)** — GOCC created under PD Nos. 1067-A/B/C as amended by PD Nos. 1399, 1632, 1869 and RA 9487 - **(u) Philippine Charity Sweepstakes Office (PCSO)** — GOCC created under RA 1169 - **(v) Philippine National Oil Company (PNOC)** — GOCC created under PD 334, as amended - **(w) Power Compliance Division (PCD)** — DOE Financial Services division; issues Order of Payment; monitors DOE-administered energy funds and LGU benefit compliance for energy resource developers - **(x) Remittance** — any payment made, sent, and transferred to the RETF - **(y) Renewable Energy Management Bureau (REMB)** — DOE bureau implementing RA 9513; manages RE policies, plans, programs, and commercialization - **(z) Renewable Energy Trust Fund (RETF)** — special account administered by the DOE to enhance RE development and utilization - **(aa) RETF Account** — Cash in Bank–Local Currency, Current Account opened in the Land Bank of the Philippines (LBP) and maintained as Trust Fund by the DOE; **Account No. 3982-1002-31**, Account Name: DOE-Renewable Energy Trust Fund (RETF) - **(bb) RETF Contributors / Sources of Fund Agencies/Entities** — identified under RA 9513 §28 and DC2009-05-0008 §34 Rule 11 - **(cc) Technical Services Management Division (TSMD)** — division under REMB; serves as Secretariat to the RETFC per SO2019-01-0003 --- ## Section 3 — RETF Guidelines ### 3.1 Estimates (Revenue and Expenditure Budgeting) The REMB, in coordination with RETF Contributors, submits estimated revenues and expenditures of the RETF account to the Accounting Division (AD) on or before **February 15** of each fiscal year. Process flow: 1. **REMB-TSMD** — by January 20: sends request letters to RETF Contributors for actual and 4-year forward estimates: - DENR: actual emission fee collections + 4-year estimate - PCSO/PAGCOR: actual net income + 4-year estimate - PNOC: actual net annual dividends + 4-year estimate 2. **FS-CERCD** — by February 10: provides estimated government share collections for the next 4 years 3. **REMB-TSMD** — by February 15: consolidates all data; submits Estimated Revenues and Expenditures (fund transfers) to AD 4. **FS-AD** — verifies data; encodes in BP 100-B Form ### 3.2 Billing, Collection, and Remittance Three fund channels: #### (a) Collection from RETF Contributors (DENR, PCSO, PAGCOR, PNOC) Rates and basis: | Contributor | Basis | Rate | |---|---|---| | DENR-EMB | Total emission fee collection 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 Retained Earnings column, Statement of Changes in Equity | 1.5% | Required documents and deadlines: - PCSO/PAGCOR: Statement of Comprehensive Income + Statement of Changes in Equity (PNOC), signed by Head of Accounting and Head of GOCC — due **15 days after COA Annual Audit Report (AAR) publication** Process flow: 1. **REMB-TSMD** — sends request letter ≥15 days before deadline to DENR, PCSO, PAGCOR, PNOC for required documents; also requests copy of Notice of Cash Allocation (NCA) if not received from DBM 2. **REMB-TSMD** — upon receipt: prepares billing statement per rates above; transmits to contributor; coordinates payment mode: - Option 1 — Direct deposit to RETF Account (LBP, Account No. 3982-1002-31) - Option 2 — Over-the-counter payment by check to DOE Treasury Division (TD) 3. **RETF Contributor** — pays within 15 days of receipt of billing statement 4. **REMB-TSMD** — coordinates with PCD for Order of Payment; assists contributor 5. **FS-PCD** — issues Order of Payment; directs contributor to TD 6. **AS-TD** — upon receipt of Order of Payment and proof of payment: issues Official Receipt (OR) 7. **AS-TD** — submits Report of Collections and Deposits, pink copy of OR, and validated deposit slips to AD 8. **FS-AD** — records collection in DOE Books of Accounts #### (b) 1.5% of Government Share from Conventional Energy Service Contractors Process flow: 1. **AS-TD** — deposits government share collections from conventional energy service contractors to BTr via clearing account (1.5% → BTr–Other than Interagency Transferred Funds [IATF]) 2. **FS-AD** — records deposits; prepares request for certification of deposits to BTr every quarter 3. **FS-CERCD** — submits to AD a schedule of government share collections from all conventional energy service contractors by **March 15** of the following year; basis of allocation is net of the 1.5% RETF share 4. **FS-AD** — upon receipt of all documents: prepares request letter for release of NCA to DBM; after Secretary approval, transmits to DBM 5. **AS-TD** — monitors RETF account balance; notifies AD when NCA is credited 6. **FS-AD** — records NCA receipt in DOE Books of Accounts #### (c) Contributions, Grants, Donations, Miscellaneous Income, Fines and Penalties Process flow: 1. **REMB-TSMD** — issues Order of Payment for collections from contributions, grants, donations, miscellaneous income, fines and penalties; assists contributor/payor to TD 2. **AS-TD** — issues OR upon receipt of Order of Payment and proof of payment; deposits all collections in RETF Account on **next banking day** following date of collection 3. **AS-TD** — submits Report of Collections and Deposits, pink copies of OR and validated deposit slips to AD 4. **FS-AD** — records collection in DOE Books of Accounts --- ## Section 4 — Operations Manual Within **three (3) months** from effectivity of this Circular, the DOE shall issue the **RETF Operations Manual**, covering: - Qualifications of Eligible Organizations - Types of Financial Support - Institutional Structures and Mechanisms - Application and Approval Process - Other necessary provisions *(Note: As of NREP 2020-2040 publication (July 2022), the Operations Manual was still under development.)* --- ## Section 5 — Accounting/Audit All RETF transactions shall be recorded in the DOE Books of Accounts under **Fund Cluster 07** as **Custodial Funds**, following government accounting procedures and auditing standards. --- ## Section 6 — Government Support Agencies Mandated support agencies under DC2009-05-0008 §34: - (a) DBM - (b) BIR - (c) DENR - (d) PCSO - (e) PAGCOR - (f) PNOC --- ## Sections 7–9 — Standard Clauses - **§7 Repealing:** Prior inconsistent issuances repealed/amended/modified - **§8 Separability:** Invalid provisions severable - **§9 Effectivity:** 15 days after publication in two newspapers; copies filed with UP Law Center — Office of the National Administrative Register (ONAR)