DoE soliciting comment on draft incentive eligibility rules

THE DEPARTMENT of Energy (DoE) is soliciting for comment a draft circular outlining how energy efficiency (EE) projects will be endorsed to the Board of Investments (BoI) for fiscal incentives.

In a notice on its website, the DoE asked interested parties to e-mail their comments and suggestions to the Energy Utilization Management Bureau (EUMB) by April 7.

The draft defines EE projects eligible for BoI registration, and classify EE projects by complexity. The draft also details the application process and criteria for evaluating EE projects interested in applying for fiscal incentives.

In the draft, the DoE said that an EE project must be able to meet the minimum 15% “project boundary” and involve an investment of at least P10 million. Based on the proposed guidelines, a project boundary refers to the “percentage range of energy savings to avail of an income tax holiday (ITH).”

Those with a project boundary of under 15% will not be entitled to an ITH, but their registration will not be cancelled.

The department also proposes to classify EE projects as either simple or complex. Simple EE projects are those that involve new installations, upgrading or retrofitting of equipment or devices. Meanwhile, complex EE projects are the ones that require installing, upgrading or retrofitting a system or a combination of systems.

In its draft, the DoE sets a minimum of eight required documents for submission by applicants.

It added that the EUMB’s Energy Efficiency and Conservation Program Management and Technology Promotion Division will conduct the technical evaluation, and determine whether the project is simple or complex.

“The evaluation process including the issuance of certificate of endorsement to BoI shall be completed within 20 working days from receipt of all required documents,” the DoE said in its proposed guidelines.

A copy of the draft guidelines and call for comments can be found on the DoE’s website.

According to the 2019 implementing rules and regulations of the Energy Efficiency and Conservation Act, energy efficiency projects that wish to avail of fiscal incentives must first be certified by the DoE and registered with the BoI. — Angelica Y. Yang