Transport establishments covered by the Energy Efficiency and Conservation Act of 2019 need to submit their annual energy consumption and conservation reports by April 15
No penalty yet for late or non-submission of report but companies will have to explain reason for non-compliance
The Department of Energy (DOE) is enjoining transport establishments covered by the Energy Efficiency and Conservation Act (EECA) of 2019 to submit their annual energy consumption and conservation reports by the April 15 deadline.
The report submission is prescribed under the EECA.
And while the April 15 deadline is stipulated under the law, late or non-submission will not be penalized “in an instant,” said officer-in-charge division chief Artemio Habitan of the DOE Energy Efficiency & Conservation Program Management & Technology Promotion Division.
DOE will instead write non-compliant companies and offer assistance in accomplishing reports.
“In other words, we will exert all our efforts to help them,” Habitan said during a recent webinar hosted by the Philippine Multimodal Transport and Logistics Association, Inc. and PortCalls.
Certain types of transport entities/companies are obligated to submit an annual energy consumption and conservation report to DOE on April 15 each year.
This is mandated under Republic Act (RA) 11285, or EECA, which was signed into law in April 2019 to institutionalize energy efficiency and conservation as a national way of life for the efficient and judicious utilization of energy.
Under the ECCA, designated establishments are defined as private or public entities in the commercial, industrial, transport, power, agriculture, public works, and other sectors identified to be energy-intensive industries, based on their annual energy consumption in the previous year or an equivalent annual index.
The transport sector covers entities/companies whose main business operation may include fleet management, air transport for commercial air passengers and cargo, hauling services, logistics services, delivery/shipping services, land/road transportation, railway transportation, and sea transport for passenger and cargo ships.
DOE Energy Utilization Management Bureau director Patrick Aquino, during the same webinar, said the transport industry accounted for 49% of oil products used in 2018 and 28% of total greenhouse gas emissions, according to the Philippine Energy Plan 2018-2040.
As of 2019, there were 3,168 domestic cargo vessels and 483,594 trucks and trailers, while domestic air freight forwarders handled 66.35 million kilograms of cargoes.
The obligation under the ECCA is implemented under DOE Memorandum Circular (MC) No. 2020-005-0001 issued in May 2020.
The MC directs all designated establishments in the commercial, industrial, and transport sectors to submit energy consumption reports for the previous year or an equivalent annual index.
All designated establishments with an annual energy consumption of not less than 100,000 kilowatt-hours (kWh) are required to comply with MC 2020-005-0001.
Designated establishments are classified by type:
• Type 1 designated establishment – with an annual energy consumption of 500,000 kilowatt-hours (kWh) to 4,000,000 kWh for the previous year
• Type 2 designated establishment – annual energy consumption of more than 4,000,000 kWh for the previous year
• Other designated establishment – annual consumption of at least 100,000 KW-Hr but less than 500,000 KWh
The energy consumption is a combination of both fuel and electricity.
The reports to be submitted not later than April 15 include the Annual Energy Utilization Report (AEUR- EEC Form 4) for the periods:
• Fiscal year (FY) 2021 (01 April 2020 to 31 March 2021)
• FY 2020 (01 April 2019 to 31 March 2020)
• FY 2019 (01 April 2018 to 31 March 2019)
• FY 2018 (01 April 2017 to 31 March 2018)
• FY 2017 (01 April 2016 to 31 March 2017)
• FY 2016 (01 April 2015 to 31 March 2016)
The AEUR will establish the baseline average energy consumption of the company as an entity and as part of the sector where it belongs.
Designated establishments should also submit an Annual Energy Efficiency and Conservation Report (AEECR — EEC Form 3) for FY 2020 and FY 2021.
The AEECR describes the establishments’ energy efficiency and conservation 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.
Habitan explained that for companies that tap third parties for trucking services, the third party which owns the trucks has to submit the report.
Aquino, meanwhile, said the classification will determine the extent of the company’s obligations as a designated establishment under the EECA.
Obligations under ECCA
One of the obligations of designated establishments is to have a designated/appointed energy conservation officer (ECO) for a type 1 designated establishment or energy manager (EM) for a type 2 designated establishment. The ECO and EM must register online and must undergo training and certification.
Aquino said the certification procedure is still being developed, and the transport sector will be notified once the training modules are available.
Another obligation is to integrate energy management systems into business operations, which is encouraged but not mandated, Aquino clarified. Transport establishments can either get a certification or just adopt the principles or framework of the system.
Another obligation, specifically for Types 1 and 2, is to conduct energy audit once every three years, which can be done by either engaging a certified energy auditor or an accredited energy service company (ESCO). An energy audit conducted in 2021 will be valid until 2024.
As of February 2021, there are 40 ESCOs accredited with DOE that the transport sector can tap to help them comply with ECCA requirements.
Another obligation is to implement energy efficiency and renewable energy projects and measures in the company’s main office and different facilities. Examples of these include fuel consumption measures to eliminate long periods of engine idling and removal of unnecessary weight of the vehicle for fuel conservation.
Aquino said DOE is working with the Board of Investments on fiscal incentives for energy efficiency projects.
Habitan, meanwhile, said he hopes the transport sector will comply with their ECCA obligations and conserve and use energy judiciously. – Roumina Pablo