SBN-2150: Electric, Hybrid and Other Alternative Fuel Vehicles Promotions Act of 2014

In a country that ranks among the world’s Top 10 most vulnerable countries to climage change” it is important to mainstream programs that mitigate climate change risks while incentivizing climate change adaptation among the private sector, communities, and individuals.

The use of electric, hybrid, and other alternative fuel vehicles (AFVs) among individuals and organizations presents such an opportunity. At present, the Department of Energy (DOE) aims to put. 100,000 electric tricycles on the road by 2017, while the Electric Vehicles Association of the Philippines (EVAP) hopes to mainstream 1 million electric vehicles by 2020.

In a study released by international consulting firm Grant Thornton in 2012, “Asia is currently the largest market for hybirds/electrics (56%).'” Further: “The trend toward alternative fuels is visible in global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs), projected to reach 5.4 million vehicles by 2021 (more than 6% of the automotive market), up from 810,000 vehicles in 2010 (approximately 2% of market share).”

The same report states that, “Around a quarter of global companies (24%) have introduced or are considering vehicles that run on alternative fuels for their businesses … Companies in the ASEAN region (31%) were most likely to use or consider alternative-fuel vehicles.'”

Among the top reasons cited for ASEAN users to consider switching to AFVs are the following: the “price of oil” (88%); “saving the planet” (88%), “cost management” (81%), and “tax relief’ (77%).

The study summarizes its findings this way: Rising oil prices and increasing awareness of the environmental impact of traditional fuels make alternative-fuel vehicles attractive to owners of commercial/business fleets. Government incentives and regulations are also pushing executives to explore alternative fuels. Indeed, many countries and states/provinces already offer significant incentives for buying or converting to alternative-fuel vehicles; in some regions regulations will eventually force the use of alternative fuels.”6 In the 15th Congress, both the Upper and Lower Houses of Congress passed on Third Reading . similar measures entitled, “An Act Providing Incentives For The Manufacture, Assembly, Conversion And Importation Of Electric, Hybrid And Other Alternative Fuel Vehicles, And For Other Purposes.” Clearly, Congress recognizes that the emerging industry of alternative fuel vehicles (AFVs) can significantly contribute to investment generation, job creation, poverty reduction, and climate change mitigation.

To follow through on this, this representation proposes stronger policy support in order to promote adoption of and drive consumer demand for electric, hybrid, and other alternative fuel vehicles, In this regard, this Act provides non-fiscal incentives to drive consumer demand, including the following:

a. Priority in registration and issuance of plate number;
b. Priority in franchise application;
c. Exemption from Unified Vehicular Volume Reduction Program (UVVRP) or Number-Coding Scheme; and
d. Provision for free parking spaces in new establishments

It is recognized that while the costs of electric and hybrid vehicles are higher compared to those of regular vehicles, these non-fiscal incentives will make the acquisition and conversion of vehicles more attractive to consumers and manufacturers alike. As the world braces itself for stronger impacts of climate change while adapting to swift changes in technology, it is imperative that Filipinos are not left behind in the waves of change. Early adaptation to and promotion of AFVs will help the country mitigate the risks associated with climate change, while opening up potential investment and job opportunities that will ultimately benefit more Filipinos.

In view of the foregoing, the passage and enactment of this bill is earnestly sought.


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