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

1
Q

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

A

1% & 1.5%

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2
Q

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

A

100

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3
Q

Chapter 5 is known as ________.

A

Government Share

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4
Q

Chapter 6 is known as ________.

A

Environmental Compliance

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5
Q

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.

A

DENR

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6
Q

Chapter 7 is known as ________.

A

General Incentives

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7
Q

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

A

DOE

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7
Q

Incentives and exemption that RE developers enjoys are the following:

A

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

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8
Q
A
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9
Q

What condition does the DOE requires for the endorsement?

A

(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

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10
Q

Acceptable accelerated depreciation methods

A
  1. Declining Balance Method
  2. Sum-of-the years digit method
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11
Q

Certificate that RE developer must secure to DENR

A

Environmental Compliance Certificate (ECC)

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12
Q

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.

A

Exemption from the Universal Charge

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13
Q

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.

A

Payment of Transmission Charges

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14
Q

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.

A

Hybrid and Cogeneration Systems

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15
Q

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

A

must be dispatch

16
Q

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

A

RE generating unit with intermittent RE resources

17
Q

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.

A

Incentives for RE Commercialization

18
Q

Incentives for RE Commercialization are the ff:

A

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

19
Q

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.

A

Tax Rebate for Purchase of RE
Components

20
Q

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

A

Department of Energy

21
Q

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

A

DOE

22
Q

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

A

15 days

23
Q

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.

A

Chairman

24
Q

The RETF shall be funded from:

A

(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

24
Q

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

A

A Renewable Energy Trust Fund

25
Q

The NREB shall have the following powers and functions:

A

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.

26
Q

The RETF shall be exclusively used to:

A

(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

27
Q

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,

A

waste-to-energy technologies

27
Q

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

A

(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.

28
Q

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

A

80%

29
Q

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

A

“Electric Power
Industry Reform Act of 2001”

30
Q

the ff are Congressional Oversight:

A

● (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.

31
Q

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

A

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

32
Q

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

A

DOE

33
Q
A