Lecture 1 Chapter 5,6,7,8,9 Elective 3

Question 1

The government share on existing and new RE development projects shall
be equal to __________ of the gross income of RE resource
developers resulting from the sale of renewable energy produced and such
other income incidental to and arising from the renewable energy
generation, transmission, and sale of electric power except for indigenous
geothermal energy, which shall be at one and a half percent _________ of gross
income

Answer 1

1% & 1.5%

Question 2

To further promote the development of RE projects, the government hereby
waives its share from the proceeds of micro-scale projects for communal
purposes and non-commercial operations, which are not greater than ___________ kilowatts

Answer 2

100

Question 3

Chapter 5 is known as ________.

Answer 3

Government Share

Question 4

Chapter 6 is known as ________.

Answer 4

Environmental Compliance

Question 5

All RE explorations, development, utilization, and RE systems operations shall
be conducted in accordance with existing environmental regulations as
prescribed by the __________ and/or any other concerned government agency.

Answer 5

DENR

Question 6

Chapter 7 is known as ________.

Answer 6

General Incentives

Question 7

To whom RE developers must obtain an endorsement to be exempted for the Duty of importation cost?

Answer 7

DOE

Question 7

Incentives and exemption that RE developers enjoys are the following:

Answer 7

a. Income Tax Holiday and
b. Duty free from importation (Tariffs)
c. Special Realty Tax Rates on Equipment and Machinery
d. Net Operating Loss Carry-Over (NOLCO)
e. Corporate Tax Rate
f. Accelerated Depreciation.
g. Zero Percent Value-Added Tax Rate
h. Cash Incentive of Renewable Energy Developers for Missionary Electrification
i. Tax Exemption of Carbon Credits
j. Tax Credit on Domestic Capital Equipment and Services

Question 9

What condition does the DOE requires for the endorsement?

Answer 9

(i) If made to another RE developer enjoying tax and duty
exemption on imported capital equipment
(ii) If made to a non-RE developer, upon payment of any taxes and
duties due on the net book value of the capital equipment to be
sold
(iii) Exportation of the used capital equipment, machinery, spare
parts or source documents or those required for RE development
(iv) For reasons of proven technical
obsolescence

Question 10

Acceptable accelerated depreciation methods

Answer 10

1. Declining Balance Method
2. Sum-of-the years digit method

Question 11

Certificate that RE developer must secure to DENR

Answer 11

Environmental Compliance Certificate (ECC)

Question 12

Power and electricity generated through the RES for the
generator’s own consumption and/or for free distribution in the
off-grid areas shall be exempted from the payment of the universal
charge provided for under Section 34 of Republic Act No. 9136.

Answer 12

Exemption from the Universal Charge

Question 13

A registered renewable energy developer producing power
and electricity from an intermittent RE resource may opt to
pay the transmission and wheeling charges of TRANSCO or
its successors-in-interest on a per kilowatt-hour basis at a
cost equivalent to the average per kilowatt-hour rate of all
other electricity transmitted through the grid.

Answer 13

Payment of Transmission Charges

Question 14

The tax exemptions and/or incentives provided for in Section
15 of this Act shall be availed of by registered RE Developer of
hybrid and cogeneration systems utilizing both RE sources and
conventional energy: Provided, however, That the tax
exemptions and incentives shall apply only to the equipment,
machinery and/or devices utilizing RE resources.

Answer 14

Hybrid and Cogeneration Systems

Question 15

Qualified
and registered RE generating units with intermittent RE resources shall be
considered _________ on available energy and shall enjoy the
benefit of priority dispatch

Answer 15

must be dispatch

Question 16

refers to a RE generating unit or group of units connected to a common connection

Answer 16

RE generating unit with intermittent RE resources

Question 17

All manufacturers, fabricators and suppliers of locally produced RE equipment and components duly
recognized and accredited by the DOE, in consultation
with DOST, DOF and DTI, shall, upon registration with
the BOI, be entitled to the privileges set forth under this
section.

Answer 17

Incentives for RE Commercialization

Question 18

Incentives for RE Commercialization are the ff:

Answer 18

a. Tax and Duty-free Importation of Components, Parts and Materials.
b. Tax Credit on Domestic Capital Components, Parts and Materials
c. Income Tax Holiday and Exemption
d. Zero-rated value added tax transactions

Question 19

To encourage the adoption of RE technologies, the DOF, in consultation with DOST, DOE,
and DTI, shall provide rebates for all or part of the tax paid for the purchase of RE
equipment for residential, industrial, or community use. The DOF shall also prescribe the
appropriate period for granting the tax rebates.

Answer 19

Tax Rebate for Purchase of RE
Components

Question 20

RE Developers and local manufacturers, fabricators and suppliers of locally-produced
renewable energy equipment shall register with the __________.

Answer 20

Department of Energy

Question 21

All certifications required to qualify RE developers to avail of the incentives provided for
under this Act shall be issued by the ______ through the Renewable Energy Management
Bureau

Answer 21

DOE

Question 22

The Department of Energy, through the Renewable Energy Management Bureau shall
issue said certification ____________ upon request of the renewable energy developer
or manufacturer, fabricator or supplier

Answer 22

15 days

Question 23

The NREB is hereby created. It shall be composed of a _______ and one (1)
representative each from the following agencies: DOE, DTI, DOF, DENR, NPC, TRANSCO.

Answer 23

Chairman

Question 24

The RETF shall be funded from:

Answer 24

(a) Proceeds from the emission fees collected from all generating facilities consistent with Republic Act No. 8749 or the Philippine Clean Air Act; (b) One and 1/2 percent (1.5%) of the net annual income of the Philippine Charity Sweepstakes Office (c) One and 1/2 percent (1.5%) of the net annual income of the Philippine Amusement and Gaming Corporation (d) One and 1/2 percent (1.5%) of the net annual dividends remitted to the National Treasury of the Philippine National Oil Company and its subsidiaries (e) Contributions, grants and donations: Provided, That all contributions, grants and donations made to the RETF shall be tax deductible subject to the provisions of the National Internal Revenue Code. Towards this end, the BIR shall assist the DOE in formulating the Rules and Regulations to implement this provision; (f) One and 1/2 percent (1.5%) of the proceeds of the Government share collected from the development and use of indigenous non-renewable energy resources (g) Any revenue generated from the utilization of the RETF; and (h) Proceeds from the fines and penalties imposed under this Act

Question 24

is hereby established to enhance the development and greater utilization of renewable energy. It shall be administered by the DOE as a special account in any of the GFIs

Answer 24

A Renewable Energy Trust Fund

Question 25

The NREB shall have the following powers and functions:

Answer 25

a. Evaluate and recommend to the DOE the mandated RPS and minimum RE generation capacities in off-grid areas, as it deems appropriate; b. Recommend specific actions to facilitate the implementation of the National Renewable Energy Program c. Monitor and review the implementation of the NREP, including compliance with the RPS and minimum RE generation capacities in off-grid areas d. Oversee and monitor the utilization of the Renewable Energy Trust Fund created pursuant to Section 28 of this Act and administered by the DOE; e. Perform such other functions, as may be necessary, to attain the objectives of this Act.

Question 26

The RETF shall be exclusively used to:

Answer 26

(a) Finance the research, development, demonstration, and promotion of the widespread and productive use of RE systems for power and non-power applications, (b) Support the development and operation of new RE resources to improve their competitiveness in the market: Provided, That the grant thereof shall be done through a competitive and transparent manner (c) Conduct nationwide resource and market assessment studies for the power and nonpower applications of renewable energy systems (d) Propagate RE knowledge by accrediting, tapping, training, and providing benefits to institutions, entities and organizations which can extend the promotion and dissemination of RE benefits to the national and local levels (e) Fund such other activities necessary or incidental to the attainment of the objectives of this Act

Question 27

refer to systems which convert to biodegradable materials such as, but not limited to, animal manure or agricultural waste, into useful energy through processes such as anaerobic digestion, fermentation and gasification, among others,

Answer 27

waste-to-energy technologies

Question 27

The Renewable Energy Management Bureau shall have the following powers and functions

Answer 27

(a) Implement policies, plans and programs related to the accelerated development, transformation, utilization and commercialization of renewable energy resources and technologies (b) Develop and maintain a centralized, comprehensive and unified data and information base on renewable energy resources to ensure the efficient evaluation, analysis, and dissemination of data and information on renewable energy resources, development, utilization, demand and technology application (c) Promote the commercialization/application of renewable energy resources including new and emerging technologies for efficient and economical transformation, conversion, processing, marketing and distribution to end users; (d) Conduct technical research, socio-economic and environmental impact studies of renewable energy projects for the development of sustainable renewable energy systems (e) Supervise and monitor activities of government and private companies and entities on renewable energy resources development and utilization to ensure compliance with existing rules, regulations, guidelines and standards (f) Provide information, consultation and technical training and advisory services to developers, practitioners and entities involved in renewable energy technology and develop renewable energy technology development strategies (g) Perform other functions that may be necessary for the effective implementation of this Act and the accelerated development and utilization of the renewable energy resources in the country.

Question 28

of the share from royalty and/or government share of RE host communities/LGUs from RE projects and activities shall be used directly to subsidize the electricity consumption of end users in the RE host communities/LGUs whose monthly consumption do not exceed one hundred (100) kwh

Answer 28

80%

Question 29

Upon the effectivity of this Act, the Joint Congressional Power Commission created under Section 62 of Republic Act No. 9136, otherwise known as the shall exercise oversight powers over the implementation of this Act

Answer 29

“Electric Power Industry Reform Act of 2001”

Question 30

the ff are Congressional Oversight:

Answer 30

● (a) Non-compliance or violation of the RPS rules; ● (b) Willful refusal to undertake net metering arrangements with qualified distribution grid users ● (c) Falsification or tampering of public documents or official records to avail of the fiscal and non-fiscal incentives provided under this Act; ● (d) Failure and willful refusal to issue the single certificate referred to in Section 26 of this Act; and ● (e) Non-compliance with the established guidelines that DOE will adopt for the implementation of this Act.

Question 31

upon conviction thereof, shall suffer the penalty of imprisonment of from ________ to __________ or a fine ranging from a minimum of _____________ to ___________.

Answer 31

1 to 5 years 100,000.00 to 100,000,000.00

Question 32

The ___________ is further empowered to impose administrative fines and penalties for any violation of the provisions of this Act, its IRR and other issuances relative to this Act

Answer 32

DOE