BIOFUELS ACT of 2006RA 9367

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

Overview of the Biofuels Act

• Possible sources of biofuel– Feedstock

• Government agencies– DENR– DOE– DOLE– DOF– DOST– DTI

Advantages

• Incentives for Biofuel Producing Firms• Conservation of Biodiversity• Promotion of publich health• Engine Efficiency and Increased Mileage• Over-All Economic Facelift

Disadvantages

• Increased Pace of Environment Deterioration• Increase in Food Prices• The Perennial Oil Price Hike

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.

Salient FeaturesMandatory Use of BiofuelsThe 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

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– 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)

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

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.

http://www.biofuels.com.ph/news/news50.htm