Patricia A. O. Bunye | Bianca Marie J. Angela M. Rañola
On 21 June 2024, the Department of Energy (“DOE”) issued Department Circular No. DC2024-06-0020 (“Circular”) on the Establishment of the Center for Affiliated Renewable Energy and Energy Efficiency and Conservation (“CARE”) and Regulations Governing the Management and Operations of the Affiliated Renewable Energy Centers (“ARECS”) in the Philippines.
As explained in DOE Department Order No. DO2019-03-0007, ARECS were established in partnership with state universities and colleges and private academic institutions to assist the DOE in the implementation, promotion, and commercialization of non-conventional or renewable energy systems. This Circular now provides for the reclassification of all existing DOE-accredited ARECS into CAREs.
To be eligible for reclassification, ARECS must comply with the application requirements under Sections 5 and 16 of the Circular within one (1) year from the effectivity of the Circular. For higher education institutions (“HEIs”), a Certificate recognizing the HEI as a CARE shall be signed by the DOE Secretary or his duly authorized Undersecretary upon the completion of the application process and technical evaluation under Section 5 of the Circular. The said Certificate shall have perpetual validity unless otherwise cancelled or revoked by the DOE.
Some of the duties and responsibilities of CAREs under Section 7 of the Circular are designating project leaders and staff for each Memorandum of Agreement (“MOA”) with the DOE, allocating adequate funds for its daily operations, and presenting research and studies for the Annual CARE Conference, among others. Failure to comply with these duties shall be cause for the delisting of the CARE and revocation of its Certificate. Section 14 of the Circular further provides other causes for the delisting of CAREs and revocation of Certificates, such as the failure to provide accurate information or the provision of false or misleading information, the submission of requirements containing false information or falsified documents, the failure to comply with the MOA without valid cause, and the failure to liquidate disbursements within ten (10) days after the end of the project’s period.
In addition, Section 10 of the Circular establishes the CARE Fund, which shall be sourced from fund allocations from the General Appropriations Act budgets of the Energy Utilization Management Bureau, the Renewable Energy Management Bureau, the National Energy Efficiency and Conservation Program, and the DOE’s research or training funds, as well as from financial assistance or grants from development partners. The Circular requires that all disbursements and accounting for fund utilization must comply with the relevant COA rules and regulations.
Finally, the Circular also details the cycle for project proposals submitted by recognized CAREs. First, the CARE must submit an Expression of Interest and ensure that its proposed project conforms to the thematic area identified by the DOE or its development partners. Second, the DOE shall publish a Call for Proposals, to which the CARE must respond with its Letter of Intent, CARE Project Fund Application Form, Project Proposal Form, Work and Financial Plan, and Budgetary Requirements, samples of which are annexed to the Circular. Should the project proposal be approved, a MOA among the proponents, the concerned DOE bureau, and/or the development partners shall be executed.