1. Republic Act No. 9367 Biofuels Act Quetua Quijano Rafanan Rivera Sajol Simbulan Tagapan Tinsay Villalon Zacarias 5ChE-C

2. Republic Act No. 9367 An act to direct the use of Biofuels, establishing for this purpose the Biofuel Program, appropriating funds therefor, and for other purposes.

3. Republic Act No. 9367 Section 1. Short Title -This act shall be known as the "Biofuels Act of 2006".

4. Republic Act No. 9367 Section 2. Declaration Policy - It is hereby declared the policy of the State to reduce dependence on imported fuels with due regard to the protection of public health, the environment, and the natural ecosystems consistent with the country's sustainable economic growth that would expand opportunities for livelihood by mandating the use of biofuels as a measure to: a) Develop and utilize indigenous renewable and sustainable-sources clean energy sources to reduce dependence on imported oil. b) Mitigate toxic and greenhouse gas (GSG) emissions; c) increase rural employment and income; and d) Ensure the availability of alternative and renewable clean energy without any detriment to the natural ecosystem, biodiversity and food reserves of the country.

5. Republic Act No. 9367 Section 3. Definition of Terms. a) AFTA b) Alternative Fuel Vehicle/Engine c) Bioethanol fuel d) Biodiesel e) Bioethanol fuels f) Biofuel g) Biomass h) DA i) Diesel j) DENR k) DOE l) DOLE m) DOF n) DOST o) DOTC p) DTI q) Feedstock r) Gasoline s) Motor fuel t) MTBE u) NBB or Board v) Oil Company w) Oxygenate x) PNS y) Renewable Energy Sources z) WTO

6. Republic Act No. 9367 Section 4. Phasing Out of the Use of Harmful Gasoline Additives and/or Oxygenates. -Within six months from affectivity of this Act, the DOE, according to duly accepted international standards, shall gradually phase out the use of harmful gasoline additives such as, but not limited to MTBE

7. Republic Act No. 9367 Section 5. Mandatory use of Biofuels -Pursuant to the above policy, it is hereby mandated that all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components as follows:

8. Republic Act No. 9367 5.1 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 requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume Provided, that ethanol blend conforms to PNS.

9. Republic Act No. 9367 5.2 Within four years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility thereafter recommend to DOE to mandate a minimum of ten percent(10%) blend of bioethanol by volume into all gasoline fuel distributed and sold by each and every oil company in the country.

10. Republic Act No. 9367 5.3 Within three months from the effectivity of this Act, a minimum of one percent (1%) biodiesel by volume shall be blended into all diesel engine fuels sold in the country: Provided That the biodiesel blend conforms to PNS for biodiesel.

11. Republic Act No. 9367 Section 6. Incentive sceme -To encourage investments in the production, distribution and use of locally-produced biofuels at and above the minimum mandated blends, and without prejudice to enjoying applicable incentives and benefits under existing laws, rules and regulations, the following additional incentives are hereby provided under this Act.

12. Republic Act No. 9367 a) Specific tax b) Value Added Tax c) Water Effluents d) Financial Assistance

13. Republic Act No. 9367 Section 7. Powers and Functions of the DOE -the DOE is hereby mandated to take appropriate and necessary actions to implement the provisions of this Act. In pursuance thereof, it shall within three months from effectivity of this Act:

14. Republic Act No. 9367 a) Formulate the implementing rules and regulations under Section 15 of this Act; b) Prepare the Philippines Biofuel program consistent with the Philippine Energy Plan and taking into consideration the DOE's existing biofuels program; c) Establish technical fuel quality standards for biofuels and biofuel-blended gasoline and diesel which comply with the PNS.

15. Republic Act No. 9367 d) Establish guidelines for the transport, storage and handling of biofuels; e) Impose fines and penalties against persons or entities found to have committed any of the prohibited acts under Section 12 (b) to (e) of this Act;

16. Republic Act No. 9367 f) Stop the sale of biofuels and biofuel- blended gasoline and diesel that are not in conformity with the specifications provided for under Section 5 of this Act, the PNS and corresponding issuances of the Department; and g) Conduct an information campaign to promote the use of biofuels

17. Republic Act No. 9367 Section 8. Creation of the National Biofuel Board (NBB) -The National Biofuel Board is hereby created. It shall be composed of the Secretary of the DOE as chairman and the Secretaries of the DTI, DOST, DA, DOF, DOLE, and the Administrators of the PCA, and the SRA, as members.

18. Section 9: Powers and Function of the NBB Monitors and evaluate the National Biofuel Program (NBP) by the DOE. Monitor the supply and utilization of biofuels and recommend measures in cases of shortage of supply for approval of the Secretary of DOE. Recommend to DOE a program that will ensure the availability of alternative fuel technology for vehicles, engine and parts and to maximize the utilization of biofuels including other biofuels Recommend to DOE the use of biofuel–blends in air transport taking into account safety and technical viability Recommend specific actions to be executed by the DOE and other appropriate government agencies concerning the implementation of the NBP.

19. SEC. 10. Security of Domestic Sugar Supply Any provision of this Act to the contrary notwithstanding, the SRA, pursuant to its mandate, shall, at all times, ensures that the supply of sugar is sufficient to meet the domestic demand and that the price of sugar is stable. The SRA shall recommend and the proper agencies shall undertake the importation of sugar whenever necessary and shall make appropriate adjustments to the minimum access volume parameters for sugar in the Tariff and Custom Code.

20. SEC. 11. Role of Government Agencies The DOF shall monitor the production and importation of biofuels through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC). The DOST and the DA shall coordinate in identifying and developing viable feedstock for the production of biofuels The DA shall: -Within three months from effectivity of this Act, develop a national program for the production of crops for use as feedstock supply. -Ensure increased productivity and sustainable supply of biofuel feedstocks.

21. SEC. 11. Role of Government Agencies The DOLE shall: -Promote gainful livelihood opportunities and facilitate productive employment through effective employment services and regulation -Ensure the access of workers to productive resources and social coverage The Tariff Commission, in coordination with the appropriate government agencies, shall create and classify a tariff line for biofuels and biofuel-blends in consideration of WTO and AFTA agreements The local government units (LGU) shall assist the DOE in monitoring the distribution sale in use of biofuels and biofuel-blends

22. SEC. 12. Prohibited Acts 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 minimum biofuel–blend by volume in violation of the requirement under Section 5 of this Act. Distribution, sale and use of automotive fuel containing harmful additives such as, but not limited to, MTBE at such concentration exceeding the limits to be determined by the NBB. Noncompliance with the established guidelines of the PNS and DOE adopted for the implementation of this Act False labeling of gasoline, diesel, biofuels and biofuel-blended gasoline and diesel

23. REPUBLIC ACT NO. 9367 AN ACT TO DIRECT THE USE OF BIOFUELS, ESTABLISHING FOR THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

24. SEC. 13. Penal Provisions “Any person, who willfully aids or abets in the commission of a crime prohibited herein or who causes the commission of any such act by another shall be liable in the same manner as the principal.” shall suffer the penalty of one year to five years imprisonment and a fine ranging from a minimum of One million pesos (P 1,000,000.00) to Five million pesos (P 5,000,000.00). In addition, the DOE shall confiscate any amount of such products that fail to comply with the requirements of Sections 4 & 5 of this Act, and implementing issuance of the DOE.

25. SEC. 14. Appropriations “Such sums as may be necessary for the initial implementation of this Act shall be taken from the current appropriations of the DOE. Thereafter, the fund necessary to carry out provisions of this Act shall be included in the annual General Appropriation Act.”

26. SEC. 15. Implementing Rules and Regulations (IRR). “The DOE, in consultation with the NBB, the stakeholders and the other agencies concerned, shall within three months from affectivity of this Act, promulgated the IRR of this Act: Provided, That prior to its effectively, the draft of the IRR shall be posted at the DOE web site for at least one month, and shall be published in at least two newspapers of general circulation.”

27. SEC. 16. Congressional Oversight Committee. “Upon affectivity of this act, a Congressional Committee, hereinafter referred to as the Biofuels Oversight Committee, is hereby constituted. The biofuels oversight committee shall be compose of (14) members, with the Chairmen of the Committees on Energy of both House of Congress as co-chairmen. The Chairmen of the Committee on Agriculture and Trade and Industry shall be ex officio members. An additional four members from each House, to be designated by the Senate President and Speaker of the House of Representatives, respectively. The minority shall be entitled to pro-rata representation but shall have at least one representative in the Biofuel Oversight Committee.”

28. SEC. 17. Benefits of Biofuel Workers. “This Act shall not in any way result in the forfeiture or diminution of existing benefits enjoyed by the sugar workers as prescribed under the R.A. No. 6982, or the Sugar Amelioration Act of 1991. In case sugarcane shall be used as feedstock.”

29. SEC. 18. Special Clause. “This act shall not be interpreted as prejudicial to clean development mechanism (CDM) projects that cause carbon dioxide (CO2) and greenhouse gasses (GHG) emission reductions by means of biofuel use.”

30. SEC. 19. Repealing Clause. “The provision of Section 148 (d) of R.A. No. 8424, otherwise known as Tax Reform Act. of 1997, and all other laws, presidential decrees or issuance, executive orders, presidential proclamations. rules and regulations or part thereof inconsistent with the provisions of this Act, are hereby repealed, modified or amended accordingly”

31. SEC. 20. Separability Clause. “If any provision of this Act is declared unconstitutional in the same shall not affect the validity and effectivity of the other provision hereof”

32. SEC. 21. Effectivity. ”This act shall effect fifteen (15) day after publication in at least two newspapers of general circulation.”

33. Republic Act No. 7581 “ AN ACT PROVIDING PROTECTION TO CONSUMERS BY STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME COMMODITIES AND BY PRESCRIBING MEASURES AGAINST UNDUE PRICE INCREASES DURING EMERGENCY SITUATIONS AND LIKE OCCASIONS” May 27, 1992

34. Section 1 “ Price Act”

35. Section 2 (1) Develop, adopt and promulgate measures to promote productivity in basic necessities and prime commodities; Declaration of Basic Policy (2) Develop an improved and efficient transport and distribution system; (3) Develop, adopt and promulgate measures to stabilize prices at reasonable levels; (4) Institute appropriate penalties for illegal price manipulation and other violations of this Act; (5) Establish a mechanism that will readily protect consumers from inadequate supply and unreasonable price increase on occasions of calamities, emergencies and like occurrences.

36. Section 3 1. Basic Necessities Definition of Terms 2. Butter Fund 3. Implementing Agency 4. Panic- buying 5. Person 6. Prevailing price 7. Price Ceiling 8. Prime Commodities a contingent fund in the budget of the implementing agency which shall not be used in its normal or regular operations but only for purposes provided for in this Act Natural person or juridical person The average price at which any basic necessity has been sold in a given time within a month from the occurrence of any of the conditions enumerated under Section 6 of this Act The maximum price at which any basic necessity or prime commodity may be sold to the general public

37. Section 4 Upon petition of the concerned parties and after public hearing, the implementing agency, with the approval of the President, may exclude from the coverage of this Act, types or brands of the goods included in the definition of basic necessities and prime commodities, which may be deemed as nonessential goods or luxury goods: Provided, That, any type or brand so excluded may be reinstated by the implementing agency during occasions of acute shortage in the supply of the basic necessity or prime commodity to which the excluded type or brand used to belong. Exclusion From the Coverage of this Act

38. Section 5 1. Hoarding Illegal Acts of Price Manipulation 2. Profiteering 3. Cartel

47. Sec 11- Price Coordinating Council There is hereby created a Price Coordinating Council, hereinafter referred to as the Council, to be composed of the following members: (1) The Secretary of Trade and Industry, as Chairman; (2) The Secretary of Agriculture; (3) The Secretary of Health; (4) The Secretary of Environment and Natural Resources; (5) The Secretary of Local Government; (6) The Secretary of Transportation and Communications; (7) The Secretary of Justice; (8) The Director General of the National Economic and Development Authority; (9) One (1) representative from the consumers' sector; (10) One (1) representative from the agricultural producers' sector; (11) One (1) representative from the trading sector; and (12) One (1) representative from the manufacturers' sector.

48. Sec 11- Price Coordinating Council The sectoral representatives of the Price Coordinating Council shall be appointed by the President for a term of one (1) year, without prejudice to reappointment for another term. The Council shall meet every quarter and whenever the President or the Chairman shall convene the same. Each member shall receive reasonable reimbursements for transportation. Members from the government sector may designate their representative to the Council; The Department of Trade and Industry shall provide the secretariat to the Council from its existing organizational structure.

49. Sec. 12- Functions of the Price Coordinating Council. The Price Coordinating Council shall have the following functions: (1) It shall coordinate the productivity, distribution and price stabilization programs, project andmeasures of the Government and develop comprehensive strategies to effect a general stabilization of prices of basic necessities and prime commodities at affordable levels; (2) It shall report to the President and to the Congress of the Philippines the status and progress of the programs, projects, and measures undertaken by each implementing department, agency or office as well as the comprehensive strategies developed by the Council to stabilize the prices of basic necessities and prime commodities; (3) It shall advise the President on general policy matters for promotion and improvement in productivity, distribution and stabilization of prices of basic necessities and prime commodities;

50. Sec. 12- Functions of the Price Coordinating Council. (4) It may require from its members or any other government agency such information as it may deem necessary, and conduct public hearings for purposes of assessing the supply, distribution and price situation of any basic necessity or prime commodity; (5) It shall publicize from time to time developments in productivity, supply, distribution and prices of basic necessities and prime commodities; and (6) Whenever automatic price control of basic necessities is imposed under Section 6 of this Act, it shall cause the immediate dissemination of their prevailing prices or the price ceilings imposed in lieu thereof, as the case may be, through publication in a newspaper of general circulation in the area affected, and through broadcast by radio and, whenever the same is deemed to materially make dissemination of the information more effective, by television. It may also disseminate the information through posting in public markets, supermarkets and other public places.

51. Sec. 13- The Price Action Officer Powers and Functions Whenever the President deems it necessary, he may appoint any of the members of the Price Coordinating Council as Price Action Officer for the duration of the automatic price control under Section 6 of this Act who shall have the following powers and functions: (1)He shall carry out, implement and enforce the policies and decisions of the Council; (2)He shall coordinate the actions of all implementing agencies involved in the monitoring and investigation of abnormal price movements and shortages of basic necessities and prime commodities; (3)He may call upon any official, agent, employee, agency or instrumentality of the national or local government for any other assistance that he may deem necessary to carry out the purposes of this Act; (4)He shall establish linkage and coordinate with nongovernment or private organizations in the affected are to assist in the monitoring and implementation of price control therein; and (5)He shall exercise such other functions and duties as may be given to him by the President.

52. ROLE OF THE NATIONAL STATISTICS OFFICE Section 14

53. National Statistics Office The National Statistics Office (NSO), formerly known as Bureau of Census and Statistics is the Philippine government's major statistical agency responsible in collecting, compiling, classifying, producing, publishing, and disseminating general- purpose statistics.

54. National Statistics Office NSO shall conduct independent periodic survey and studies of the selling price of all basic necessities and prime commodities all over the country for government efforts to stabilize prices.

55. PENALTY FOR ACTS OF ILLEGAL PRICE MANIPULATION Section 15

56. Price Manipulation Market manipulation is a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency.

57. PENALTY FOR VIOLATION OF PRICE CEILING Section 16

58. Price Ceiling A price ceiling is a government-imposed price control or limit on how high a price is charged for a product. Governments intend price ceilings to protect consumers from conditions that could make necessary commodities unattainable.

59. VIOLATION BY JURIDICAL PERSONS Section 17

60. Juridical Persons Entity (such as a firm) other than a natural person (human being) created by law and recognized as a legal entity having distinct identity, legal personality, and duties and rights. Also called artificial person, juridical entity, juristic person, or legal person.

61. VIOLATION BY ALIENS Section 18

62. Aliens In law, an alien is a person who resides within the borders of a country and is not a national of the country.

63. VIOLATION BY GOVERNMENT OFFICIALS OR EMPLOYEES Section 19

64. Official An official is someone who holds an office (function or mandate, regardless whether it carries an actual working space with it) in an organization or government and participates in the exercise of authority (either his own or that of his superior and/or employer, public or legally private).

65. Section 20 Criminal Penalties Without Prejudice to Administrative Sanctions. - The foregoing criminal penalties shall be without prejudice to the administrative sanctions which the implementing agency may impose under this Act or under any other law.

66. Section 21 Relations of the Price Act to Other Laws, Presidential Issuances. - Nothing in this Act shall be constructed as removing or diminishing the jurisdiction of any agency of Government on certain goods or products conferred by other laws or presidential issuances.

67. Section 22 Separability Clause. - If, for any reason, any provision of this Act or the application of such provision to any person group or circumstance is declared invalid or unconstitutional, the remainder of this Act shall not be affected by such declaration.

68. Section 23 Repealing Clause. - To the extent inconsistent with this Act, the following laws and letters of instruction are hereby repealed: (1) Republic Act No. 4164, entitled "An Act to Prevent the Excessive Increase in the Price of Certain Prime Necessities of life on the Occasion of a Public Calamity, Penalizing the Violation Thereof, and for other Purposes." (2) Presidential Decree No. 1674, entitled "Providing a Mechanism for Price Regulation, Creating a Price Stabilization Council, Prescribing its Powers and Responsibilities and for other Purposes; (3) Letter of Instruction No. 1305, entitled "Directing Measures to Prevent Cement Hoarding, Price Manipulation and Profiteering." (4) Letter on Instruction No. 1342, entitled "Ordering Immediate Measures to Prevent Price Manipulation and to Protect Consumers; and (5) Letter of Instruction No. 1359, entitled "Directing Measures to Prevent Hoarding, Profiteering and Price Manipulation. All laws, and rules and regulations inconsistent herewith are hereby likewise repealed or modified accordingly.

69. Section 24 Effectivity Clause. - This Act shall take effect three (3) days after its publication in two (2) national newspapers of general circulation.