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

Effect of Biodiesel to the Environment

Vehicles using biodiesel emit less air pollution than those using regular
diesel.
Toxic air pollutants
Hydrocarbons
Carbon dioxide
Air Quality Benefits of Biodiesel.

Slide 6

USEPA. A Comprehensive Analysis of Biodiesel Impacts on Exhaust

Emissions. Draft Technical Report. EPA420-P-02-001. October 2002.
www.epa.gov/otaq/models/analysis/biodsl/p02001.pdf

Effect of Biodiesel to the Environment

Biodiesel blends and pure biodiesel can reduce particulate matter (PM)
by approx.10 to 50 percent, respectively.
Adverse health effects from ambient PM include
Increased respiratory diseases
Decreased lung function
Increased mortality rates (premature death)
Air Quality Benefits of Biodiesel.

Biodiesel can reduce greenhouse gases, the pollution that causes global
warming, by up to 78 %

The bus using pure biodiesel reduced CO2 emissions by 78 % when

compared with regular diesel. Similarly, buses using B20 reduce their
overall CO2 emissions by 16 %.
Air Quality Benefits of Biodiesel.

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 laws 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 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 laws effectivity, a minimum of 1% biodiesel

blend in all diesel engine fuels sold in the country
within two years from the laws effectivity, a minimum of 2% biodiesel
blend, upon the recommendation of the National Biofuels Board (NBB)

On Bioethanol

within two years from the laws effectivity, a minimum of 5% bioethanol

blend in all gasoline fuel sold and distributed by every oil company
within four years from the laws 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).

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

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.