Department
Circular No. 2005-03-002
RULES AND REGULATIONS
GOVERNING THE ESTABLISHMENT AND IMPLEMENTATION OF THE ALTERNATIVE FUELS FUND
WHEREAS,
it is the policy of the Government to ensure continuous, adequate and economic
supply of indigenous energy to increase self-reliance in the country’s energy
requirements;
WHEREAS,
by virtue of
Executive Order No. 66, the
DOE is designated as the lead government
agency in ensuring a unified and coordinated efforts towards establishing a
successful and robust Philippine Natural Gas Industry;
WHEREAS,
the
Malampaya Gas-to-Power Project
represents the beginning of the natural gas industry in the
WHEREAS,
it is the policy of the
Department of Energy
(DOE) to promote the utilization of alternative fuels and energy
technologies for industrial, commercial and transport sectors;
WHEREAS,
the Natural Gas Vehicle Program for Public Transport (NGVPPT) which was
launched on October 16, 2002 unveils a portfolio of incentives to encourage
active participation of the private sector in providing the necessary support,
logistics and infrastructure to the said program;
WHEREAS,
by virtue of
Executive Order No. 290, the
DOE is designated as the lead implementing
government agency for the NGVPPT in coordination with different government
agencies, institutions and the private sector;
WHEREAS,
the development of infrastructure and market for compressed natural gas (CNG)
and CNG-fueled public utility buses was supported by the private sector;
WHEREAS,
a Memorandum of Agreement (MOA) was signed among CNG suppliers for the
establishment of Compressed Natural Gas for Public Transport Pilot Project to
study and evaluate the commercial viability, technical requirements and market
demand of CNG and CNG-fueled public utility buses;
WHEREAS,
a Supplement to the MOA was signed providing the CNG pump price and pricing
structure for the Pilot Project and the Alternative Fuels Fund as a
contribution for the implementation of the DOE’s Alternative Fuels Program;
WHEREAS,
Section 13 (General Provisions) of Republic Act 9336, otherwise known as the
General Appropriations Act for fiscal year 2005 provides that departments,
bureaus, offices or agencies may accept donations, contributions, grants,
bequests or gifts in cash or in kind, from various sources, domestic or foreign
for purposes relevant to their functions.
NOW,
THEREFORE, pursuant to the provisions of the Supplement dated 26 January 2005
to the Memorandum of Agreement for Compressed Natural Gas for Public Transport
Pilot Project executed on 4 August 2003 by and among the
Department of Energy (DOE) and
Malampaya Service Contract No. 38 Consortium,
the following rules and regulations governing the establishment, administration
and implementation of the Alternative Fuels Fund is hereby promulgated.
Section
1. TITLE
This
Department Circular shall be known and cited as the RULES AND REGULATIONS
ESTABLISHING AND IMPLEMENTING THE ALTERNATIVE FUELS FUND.
Section
2. OBJECTIVES
The
purpose of this Department Circular is to establish the Alternative Fuels Fund
(AFF) for the promotion on the use of alternative fuels and energy technologies
and provide guidelines on the administration of the said Fund by:
(a) defining the scope of projects and/or activities applicable for which the Fund may be utilized; and
(b) defining the procedures on disbursement, accountabilities, audit and other related matters pertaining to the administration of the Fund.
Section
3. SCOPE
This
Department Circular shall apply to the
DOE’s
Alternative Fuels Program which is implemented under the Energy Utilization
Management Bureau-Alternative Fuels and Energy Technology Division
(EUMB-AFETD). The activities under which
the Alternative Fuels Programs may avail of the Alternative Fuels Fund shall
include:
(a) Research and development (R&D) undertakings on alternative fuels and energy technologies for pilot/experimental application;
(b) Development and maintenance of prototype equipment, vehicles, and facilities to include related materials such as software program, testing protocols, fuels, parts and components, etc.;
(c) Development of local standards for the application and utilization of alternative fuels and energy technologies to include acquisition of manuals, handbooks, etc. on international standards as reference;
(d) Acquisition and maintenance of alternative fuel vehicles conversion kits, alternative fuel-fed original equipment manufactured (OEM) vehicles, etc. for research and demonstration;
(e) Manpower capacity building of DOE personnel and program stakeholders on alternative fuels and energy technologies such as hiring of consultants/experts (international), conduct of seminars and attendance to technical trainings and workshops (local and international) relating to AFETD activities to include funding of travel, accommodation and daily subsistence allowance;
(f) Hiring of contractual personnel such as drivers, mechanics and staff dedicated to the operation, monitoring and maintenance of acquired alternative fuel-fed OEM and converted vehicles, and other related equipments;
(g) Such other projects/activities that promote the utilization of alternative fuels and energy technologies.
The
Alternative Fuels Fund should not be construed as a replacement for or reduce
any budget (regular or otherwise) allotment for Alternative Fuels and Energy
Technology Division.
Section
4. ROLE
OF THE
DEPARTMENT OF ENERGY (DOE)
The
DOE Secretary shall approve or disapprove
projects/activities that will be charged to the Alternative Fuels Fund. The EUMB Director will endorse to the
Secretary projects/activities to be funded by the Alternative Fuels Fund. A special budget with corresponding Notice of
Cash Allocation for this purpose shall be requested from the
Department of Budget and Management. The disbursement of Fund shall be subject to
the usual accounting and auditing rules and regulations.
The
DOE shall monitor and audit the proceeds
to the AFF from the
Pilipinas Shell
Petroleum Corporation’s CNG sales.
The audit shall be made within sixty (60) days from the end of each semester.
Section
5. ROLE OF THE
PILIPINAS
SHELL PETROLEUM CORPORATION (PSPC)
The
PSPC, as provided in the Supplement to the
MOA for CNG for Public Transport Pilot Project, shall set aside fifty-two
centavos (PhP 0.52) per Nm3 sale of CNG for the AFF and shall be
remitted to the
DOE within ten (10) days
after the end of each month. For this
purpose,
PSPC shall submit monthly CNG
sales, remittances and Fund status reports to the
DOE.
Section
6. SANCTIONS
Any
person who violates any provision of this Department Circular shall be given
the corresponding criminal, civil and/or administrative sanctions as provided
under existing applicable laws, rules and regulations.
Section
7. FINAL
PROVISIONS
All
Department orders, rules and regulations inconsistent with or contrary to the
provisions of this Department Circular are hereby repealed and modified
accordingly.
If
any provision of this Department Circular or the application of said provision
to any person or circumstances is declared unconstitutional, the remainder of
the Circular or the application of such provision to other persons or
circumstances shall not be affected by the said declaration.
Section
8. EFFECTIVITY
This
Department Circular shall take effect fifteen (15) days after its complete publication
in a national newspaper of general circulation.
VICENTE S. PÉREZ, JR.
Secretary
11
March 2005
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