BIOFUELS ACT of 2006 RA 9367 Authored by Miguel Zubiri. Both Houses of Congress ratified Republic Act 9367 otherwise known as the Biofuels Act of 2006 on November 29, 2006. President Gloria Macapagal-Arroyo signed the Bill into law on January 12, 2007. It took effect on May 27, 2007 (mandates a minimum 1% biodiesel blend and 5% bioethanol blend by volume in all diesel and gasoline fuels, respectively, being distributed and sold in the country)

Overview of the Biofuels Act Reduce dependence on imported fuels to Protect public health Protect the environment and natural ecosystems Promote economic growth Biofuels include: Bieothanol A LGHT ALCOHOL IS PRODUCED BY FERMENTING cho SUCH AS STARCH OR SGAR, IN VEGETABLE MATTER Biodiesel IS A FUEL EXTRACTED FROM PLANT OILS. IT CAN BE USED IN DIESEL ENGINES WITHOUT ANY NEED FOR MODIFICATION COCONUT AND JATROPHA The Biofuels Act principally aims to develop and utilize homegrown and renewable alternatives to oil. It also seeks to mitigate toxic and greenhouse gas emissions. Additionally, an important consequence of this energy reform strategy is the likelihood of increased farm output, thereby generating more rural employment and higher incomes among farmers

Overview of the Biofuels Act Possible sources of biofuel Feedstock Government agencies DENR DOE DOLE DOF DOST DTI Feedstock: organic sources such as molasses, sugarcane, cassava, coconut, jatropha, sweet sorghum or other biomass used in the production of biofuels; Government agencies: http://www.pnoc-afc.com.ph/faq.php

Advantages Incentives for Biofuel Producing Firms Conservation of Biodiversity Promotion of publich health Engine Efficiency and Increased Mileage Over-All Economic Facelift incentives: zero tax on some imported biofuel components, no vat on local biofuel raw materials, some water exempted from wastewater charges Conservation of biodiversity: preserve fossils and environment by utilizing crops that can be replanted and reused Promotion of public health: “clean” fuels have lesser pollution Engine efficiency: reduces hycrocarbon emissions thereby enhancing engine function Over-all economic facelift: more livelihood for farmers (sugarcane and coconut) and fishermen; *** There are many benefits in using biofuels:  For the transport sector: better vehicle performance, increased engine power, and higher mileage;  For the environment: cleaner emissions that meet clean air standards; and  For the agriculture sector: additional 3.5M jobs for coconut farmers and 87,000 jobs for sugar planters and manufacturers.

Disadvantages Increased Pace of Environment Deterioration Increase in Food Prices The Perennial Oil Price Hike -Increased Pace of Environment Deterioration: carbon dioxide emitted will still be absorbed by the plants and released in the atmosphere; only sugarcane is proven to be beneficial in combatting greenhouse effect (others are least helpful) -Increase in Food Prices: due to possible food shortage due to limited water and land supply that will be utilized for planting biofuel raw materials instead of food -The Perennial Oil Price Hike: competition between foreign and local oil suppliers

Salient Features Phasing out of the use of Harmful Gasoline Additives and/or Oxygenates Within six months from the law’s effectivity, the DOE has to ensure the gradual phase out the use of harmful gasoline additives and/or oxygenates.  Oxygenates are substances which, when added to gasoline, increase the amount of oxygen in that gasoline blend. http://www.pnoc-afc.com.ph/faq.php

Salient Features Mandatory Use of Biofuels The law also provides that all liquid fuels for motors and engines sold in the Philippines must contain locally-sourced biofuels components as follows: On Biodiesel within three months from the law’s effectivity, a minimum of 1% biodiesel blend in all diesel engine fuels sold in the country within two years from the law’s effectivity, a minimum of 2% biodiesel blend, upon the recommendation of the National Biofuels Board (NBB) On Bioethanol within two years from the law’s effectivity, a minimum of 5% bioethanol blend in all gasoline fuel sold and distributed by every oil company •within four years from the law’s effectivity, a minimum of 10% bioethanol blend in all gasoline fuel sold and distributed in the country, upon the recommendation of the NBB http://www.pnoc-afc.com.ph/faq.php

Acts prohibited by RA 9367 • diversion of biofuels, whether locally-produced or imported, to purposes other than those envisioned in this Act • sale of biofuel-blended gasoline or diesel that fails to comply with the legally-mandated minimum biofuel blend by volume • distribution, sale and use of automotive fuel containing harmful additives • non-compliance with established guidelines of the PNS and DOE adopted for the implementation of RA 9367 • false labeling of gasoline, diesel, biofuels and biofuel-blended gasoline and diesel http://www.pnoc-afc.com.ph/faq2.php

Penalties provided by RA 9367 The DOE may impose administrative fines, suspend the operation of businesses and confiscate and dispose any amount of products prohibited under RA 9367 and its implementing issuances.  Violators of RA 9367 are likewise penalized with one year to five years of imprisonment and a fine ranging from a minimum of one million pesos (P1 million) to five million pesos (P5 million).  http://www.pnoc-afc.com.ph/faq2.php

Where are we now? According to the Act: Within two years from the effectivity of this Act, at least five percent (5%) bioethanol shall comprise the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume: Provided That the ethanol blend conforms to PNS.

Where are we now? Petron Philippines Shell Philippines Petron opened the 1st Fuel additives blending plant in Asia-Pacific in 2008 (Subic) E10 Premium Gasoline (Petron bought the first locally produced fuel grade ethanol in Leyte) Shell Philippines complies with 2% Biodiesel Blend Mandate E10 Premium Gasoline Caltex Philippines SEAOIL Philippines E10 Gasoline (90% gasoline and 10% ethanol) Biodiesel (BioXceed diesel) http://www.shell.com/home/content/phl/aboutshell/media_centre/annual_reports_and_publications/positionpapers/advert_2009/biodiesel_blend_mandate.html

Efforts done by the State to further the Act Hydrocarbon Deposits Found in South Sulu Sea December 1, 2009 Philippines to receive 250M USD from the Clean Technology Fund December 4, 2009 PNOC-AFC to pursue jatropha project (Iwahig Prison and Penal Farm in Puerto Princesa, Palawan) April 10, 2008 Japanese firm starts $600-M coco plantation January 24, 2008 http://www.doe.gov.ph/news/PressReleases.asp?attach=486 http://www.biofuels.com.ph/news.html

UPDATES THE use of the mandated 1-percent coco-biodiesel blend (B1) has significantly cut down carbon emissions in Metro Manila, There has been a drastic 24.2-percent reduction in amount of total suspended particulates [TSP] and particulate matter [PM] in the air in the third quarter of the year," (DENR).- Business Mirror, December 5, 2007 http://www.biofuels.com.ph/news/news50.htm

Metro Manila residents can now see the coastline of Manila Bay in the morning without a haze, while those in Antipolo can now see the city without a blanket of smog. this data supports positive anecdotal proof on the effect of the biodiesel mandate as Metro Manila residents can now see the coastline of Manila Bay in the morning without a haze, while those in Antipolo can now see the city without a blanket of smog. http://www.biofuels.com.ph/news/news50.htm