Power generation projects, including those under the NPC privatization plan

• Those utilizing indigenous and renewable energy such as biomass, waste to energy conversion, solar, wind, geothermal, hydro and tidal;
  
• Those using natural gas and LPG;
  
• Those using fossil fuels as specified in the PDP using environment-friendly technology; and
  
• Cogeneration or Combined Heat and Power plants producing electrical forms of useful thermal energy.

Power transmission projects that cost at least PhP 1.0 billion

Energy efficiency and conservation activities

• Development of fuel blends such as coco bio-diesel, ethanol, etc.;
  
• Services involving energy labeling and efficiency standards for appliances, vehicles, electrical devices and equipment;
  
• Activities involving heat rate recovery and/or improvement of
  power plants in compliance with the heat rate standards set by the ERC;
  
• Conversion shops providing converting, retrofitting, repairing and maintaining CNG/LPG vehicles in accordance with the relevant PNS; and
  
• Installation and operation of CNG/LPG refueling stations and related infrastructures and facilities as endorsed by the DOE.

Land transport which covers the operation of Public Utility Bus (PUBs) operations and Public Utility Articulated Buses (PUABs) including buses using CNG/LNG

The following are the qualifications for registration:

• Buses must be brand new (per LTFRB M.C. 2003-024 definition 1);
  
• Retrofitted/re-powered buses with brand new engines using CNG/LPG may be allowed;
  
• Operators must have their own terminals and garage that can accommodate the total number of buses under their franchises; and
  
• Operators must undertake to operate within the franchise routes.

Pipeline operations or the application for registration on the establishment of infrastructure for transport of petroleum products, natural gas, petrochemicals, and similar products must include proof of filing of an application for Authority to Operate Pipeline System with the DOE and/or appropriate government agency.

• The transport from mother station to daughter station should be in accordance with PNS standards.

Mandatory Inclusions, all projects covered under this category shall only be entitled to the incentives provided for under their respective laws. R.A. 8479, otherwise known as Oil Deregulation is included under this category.

• Refining, storage, marketing and distribution of petroleum products under R.A. 8479. This covers all activities under the downstream oil industry, specifically refining, storage, distribution and marketing of petroleum products.
  • Refinery refers to oil refining, oil processing and oil movements and storage within the refinery, defined as follows"

• Oil refining refers to and covers the activity of manufacturing locally petroleum products through distillation, conversion and treatment of crude oil and other naturally occurring petroleum hydrocarbons.
  
• Oil processing refers to and covers the activity of manufacturing locally petroleum products with or without the use of the distillation process.
  
• Oil movement and storage cover receiving/discharging and storing petroleum within the refinery intended for refining and/or processing and eventual distribution purposes.

  Investments in oil refining and/or oil processing shall include expansion, modification and rehabilitation in a refinery, resulting in an increase in existing volume of production, and/ or improvement in the quality of petroleum products in conformance with the Philippine National Standards (PNS), the Clean Air Act, and other applicable laws and regulation.

  Investments in oil movement and storage shall include expansion, modification and rehabilitation of facilities in the refinery resulting in an increase in existing capacity for storage, handling and distribution in the refinery.

• Storage refers to the business of receiving/discharging and storing petroleum crudes and/or products of others for compensation or profit. This shall include fuels transshipment or terminalling (pertains to the last point prior to distribution).
• Distribution refers to the bunkering and fuels shipping and transport. Fuels shipping and transport cover shipping and transport land such as tank trucks, lorries and pipeline and tankers, and barges of the fuels to get to the points or areas where they are needed. Bunkering covers the activity of selling fuel for direct use by a vessel, usually for water and air transport, trough a smaller transport vessel.

 

Distribution projects are limited to those utilizing brand new equipment.

• Marketing covers the following:
  • Retailing of petroleum products refers to selling of petroleum products or fuels in retail generally directed to the end users. Through dispensing pumps in gasoline stations or in packaged containers such as drums for the liquid fuels or metal cylinders for LPG. This includes the establishment and operation of gasoline stations and LPG retailing.
  • For gasoline retailing stations, except those locating in Less Developed Areas (LDAs) listed in this IPP, the applicant shall be required to invest a minimum capital of the Php10 million per station, excluding land, or such amount as may be determined jointly by BOI and DOE for augmentation purposes, as the need arises. Provided, that foreign retailers shall comply with the requirements provided under RA 8762, otherwise known as the Retail Trade Liberalization Law, and its implementing rules and regulations.
  • " Fuels bulk marketing covered the selling of petroleum products or fuels in wholesale through tank trucks, lorries, tankers, barges or pipelines, which may be sourced from one's own storage facilities. Investment shall include underground tanks and other equipment intended for fuels retailing through outlets such as gasoline stations and LPG outlets.
  • " LPG refilling and marketing- a combination of storage, distribution, and marketing activities may also be eligible for registration. For storage, marketing and distribution, only investments of new industry participants may be entitled to incentives. The applicant shall submit an endorsement from the Department of Energy certifying that the applicant is new industry participant with new investments.

   

  Except for availment of incentive on Duty of three (3) percent on imported capital equipment, a DOE certification on actual new investments of the registered enterprise shall be required in the application for incentives availment. Said investments shall be validated by an ocular inspection by the DOE.

Incentives shall be available for a period of five (5) years from the date of registration except Income Tax Holiday (ITH), which shall be reckoned from date of commercial operation. Date of commercial operation shall refer to the scheduled start of commercial operation, which is indicated in the firm's specific registration terms and conditions, which shall be based on the following:

• For refineries, it will be the date when the registered enterprise actually first begins production of the registered product for commercial purposes. In cases of expansion, modification and rehabilitation of refineries, the start of commercial operation shall be the date after the scheduled completion of the said activities.
  
• For storage, it will be the date when the registered enterprise actually first received the registered product for storage.
  
• For distribution, it will be the date when the registered enterprise actually first transferred the registered product for distribution.
  
• For marketing, it will be the date when the registered enterprise actually first sold the registered product.
  
• For combinations involving storage, distribution, and marketing, it will be the date referred to in "marketing;" Provided no separate transactions for either storage or distribution is undertaken, among the combined registered activities.

   

ITH shall be applicable to income derived from the activity covered by the registration reckoned five (5) years from date of commercial operation: Provided that in case of gasoline retailing stations, except those locating in LDAs, the incentive shall be available only to those with minimum capital requirement, excluding land, of Php 20 million or such amount as may be determined jointly by BOI and DOE for augmentation purposes, as the need arises.

Availment of ITH incentive shall be based on new investments made. New investments should account for at least 20% of the total investments (inclusive of equipment and plant facilities at acquisition cost or a minimum of Philippine Peso equivalent of US$2 million, whichever is lower.