Republic of the Philippines
Congress of the Philippines
Metro ManilaThirteenth Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand six.
Republic Act No. 9367 January 12, 2007
AN ACT TO DIRECT THE USE OF BIOFUELS, ESTABLISHING FOR THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title - This act shall be known as the "Biofuels Act of 2006".
SEC. 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)...
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Amended by
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Republic Acts
AN ACT TO DIRECT THE USE OF BIOFUELS
Republic Act No. 9367
Summary of the Biofuels Act of 2006 (Republic Act No. 9367)
Declaration of Policy (Section 2)
- Reduce dependence on imported fuels while protecting public health, environment, and natural ecosystems.
- Develop and utilize indigenous renewable and sustainable clean energy sources.
- Mitigate toxic and greenhouse gas emissions.
- Increase rural employment and income.
- Ensure availability of alternative and renewable clean energy without detriment to natural ecosystems, biodiversity, and food reserves.
Definitions (Section 3)
- Defines terms such as biofuels, biodiesel, bioethanol, biomass, and other relevant terms.
Phasing Out Harmful Gasoline Additives (Section 4)
- The DOE shall gradually phase out the use of harmful gasoline additives like MTBE within six months from the law's effectivity.
Mandatory Use of Biofuels (Section 5)
- Within two years, at least 5% bioethanol shall comprise the annual total volume of gasoline sold by oil companies. (Section 5.1)
- Within four years, the NBB may recommend increasing the bioethanol blend to 10%. (Section 5.2)
- Within three months, a minimum of 1% biodiesel shall be blended into all diesel engine fuels sold. (Section 5.3)
- Within two years, the NBB may recommend increasing the biodiesel blend to 2%. (Section 5.3)
Incentive Scheme (Section 6)
- Specific tax on biofuels component shall be zero. (Section 6a)
- Sale of raw materials for biofuel production shall be exempt from value-added tax. (Section 6b)
- Water effluents from biofuel production used as liquid fertilizer shall be exempt from wastewater charges. (Section 6c)
- Government financial institutions shall prioritize financing for biofuel production and related activities. (Section 6d)
Powers and Functions of the DOE (Section 7)
- Formulate implementing rules and regulations.
- Prepare the Philippines Biofuel Program.
- Establish technical fuel quality standards for biofuels and biofuel-blends.
- Establish guidelines for transport, storage, and handling of biofuels.
- Impose fines and penalties for prohibited acts.
- Stop the sale of non-compliant biofuels and biofuel-blends.
- Conduct an information campaign to promote biofuel use.
Creation of the National Biofuel Board (NBB) (Section 8)
- The NBB is created, composed of the Secretaries of DOE (Chairperson), DTI, DOST, DA, DOF, DOLE, and Administrators of PCA and SRA.
- The NBB shall be assisted by a Technical Secretariat attached to the Office of the DOE Secretary.
Powers and Functions of the NBB (Section 9)
- Monitor and evaluate the National Biofuel Program. (Section 9a)
- Monitor the supply and utilization of biofuels and recommend measures in case of shortage. (Section 9b)
- Review and recommend adjustments to the minimum mandated biofuel blends. (Section 9c)
- Recommend a program to ensure availability of alternative fuel technology. (Section 9d)
- Recommend the use of biofuel-blends in air transport. (Section 9e)
- Recommend specific actions for the implementation of the NBP. (Section 9f)
Security of Domestic Sugar Supply (Section 10)
- The SRA shall ensure sufficient supply of sugar to meet domestic demand and stable prices.
- The SRA shall recommend importation of sugar when necessary.
Role of Government Agencies (Section 11)
- DOF shall monitor the production and importation of biofuels. (Section 11a)
- DOST and DA shall identify and develop viable feedstock for biofuel production. (Section 11b)
- DOST shall develop and implement a research and development program for biofuel production and utilization technology. (Section 11c)
- DA shall develop a national program for the production of biofuel feedstock crops, ensure increased productivity and sustainable supply, and publish information on suitable areas for cultivation. (Section 11d)
- DOLE shall promote livelihood opportunities, productive employment, and recommend plans and policies to enhance the social impact of the NBP. (Section 11e)
- Tariff Commission shall create and classify a tariff line for biofuels and biofuel-blends. (Section 11f)
- LGUs shall assist the DOE in monitoring the distribution, sale, and use of biofuels and biofuel-blends. (Section 11g)
Prohibited Acts (Section 12)
- Diversion of biofuels for purposes other than those envisioned in the Act.
- Sale of biofuel-blended gasoline or diesel that fails to comply with the minimum biofuel-blend requirement.
- Distribution, sale, and use of automotive fuel containing harmful additives like MTBE.
- Non-compliance with the established guidelines of the PNS and DOE.
- False labeling of gasoline, diesel, biofuels, and biofuel-blends.
Penal Provisions (Section 13)
- Penalties of one to five years imprisonment and a fine ranging from ₱1,000,000 to ₱5,000,000 for prohibited acts.
- The DOE may confiscate non-compliant products and stop or suspend the operation of businesses for non-compliance.
- The DOE may impose administrative fines and penalties for violations.
Appropriations (Section 14)
- Funds necessary for initial implementation shall be taken from the current appropriations of the DOE.
- Subsequent funds shall be included in the annual General Appropriation Act.
Implementing Rules and Regulations (IRR) (Section 15)
- The DOE, in consultation with the NBB, stakeholders, and other agencies, shall promulgate the IRR within three months from the law's effectivity.
Congressional Oversight Committee (Section 16)
- A Biofuels Oversight Committee composed of 14 members from both Houses of Congress shall be constituted.
Benefits of Biofuel Workers (Section 17)
- The Act shall not result in the forfeiture or diminution of existing benefits enjoyed by sugar workers under the Sugar Amelioration Act of 1991.
- The NBB shall establish a mechanism for the benefit of other biofuel workers.
Special Clause (Section 18)
- The Act shall not be interpreted as prejudicial to clean development mechanism (CDM) projects that cause CO2 and greenhouse gas emission reductions by means of biofuel use.
Repealing Clause (Section 19)
- Repeals or amends inconsistent laws, presidential decrees, executive orders, rules, and regulations.
Separability Clause (Section 20)
- If any provision is declared unconstitutional, the remaining provisions shall remain valid and effective.
Effectivity (Section 21)
- The Act shall take effect 15 days after publication in at least two newspapers of general circulation.
Declaration of Policy (Section 2)
- Reduce dependence on imported fuels while protecting public health, environment, and natural ecosystems.
- Develop and utilize indigenous renewable and sustainable clean energy sources.
- Mitigate toxic and greenhouse gas emissions.
- Increase rural employment and income.
- Ensure availability of alternative and renewable clean energy without detriment to natural ecosystems, biodiversity, and food reserves.
Definitions (Section 3)
- Defines terms such as biofuels, biodiesel, bioethanol, biomass, and other relevant terms.
Phasing Out Harmful Gasoline Additives (Section 4)
- The DOE shall gradually phase out the use of harmful gasoline additives like MTBE within six months from the law's effectivity.
Mandatory Use of Biofuels (Section 5)
- Within two years, at least 5% bioethanol shall comprise the annual total volume of gasoline sold by oil companies. (Section 5.1)
- Within four years, the NBB may recommend increasing the bioethanol blend to 10%. (Section 5.2)
- Within three months, a minimum of 1% biodiesel shall be blended into all diesel engine fuels sold. (Section 5.3)
- Within two years, the NBB may recommend increasing the biodiesel blend to 2%. (Section 5.3)
Incentive Scheme (Section 6)
- Specific tax on biofuels component shall be zero. (Section 6a)
- Sale of raw materials for biofuel production shall be exempt from value-added tax. (Section 6b)
- Water effluents from biofuel production used as liquid fertilizer shall be exempt from wastewater charges. (Section 6c)
- Government financial institutions shall prioritize financing for biofuel production and related activities. (Section 6d)
Powers and Functions of the DOE (Section 7)
- Formulate implementing rules and regulations.
- Prepare the Philippines Biofuel Program.
- Establish technical fuel quality standards for biofuels and biofuel-blends.
- Establish guidelines for transport, storage, and handling of biofuels.
- Impose fines and penalties for prohibited acts.
- Stop the sale of non-compliant biofuels and biofuel-blends.
- Conduct an information campaign to promote biofuel use.
Creation of the National Biofuel Board (NBB) (Section 8)
- The NBB is created, composed of the Secretaries of DOE (Chairperson), DTI, DOST, DA, DOF, DOLE, and Administrators of PCA and SRA.
- The NBB shall be assisted by a Technical Secretariat attached to the Office of the DOE Secretary.
Powers and Functions of the NBB (Section 9)
- Monitor and evaluate the National Biofuel Program. (Section 9a)
- Monitor the supply and utilization of biofuels and recommend measures in case of shortage. (Section 9b)
- Review and recommend adjustments to the minimum mandated biofuel blends. (Section 9c)
- Recommend a program to ensure availability of alternative fuel technology. (Section 9d)
- Recommend the use of biofuel-blends in air transport. (Section 9e)
- Recommend specific actions for the implementation of the NBP. (Section 9f)
Security of Domestic Sugar Supply (Section 10)
- The SRA shall ensure sufficient supply of sugar to meet domestic demand and stable prices.
- The SRA shall recommend importation of sugar when necessary.
Role of Government Agencies (Section 11)
- DOF shall monitor the production and importation of biofuels. (Section 11a)
- DOST and DA shall identify and develop viable feedstock for biofuel production. (Section 11b)
- DOST shall develop and implement a research and development program for biofuel production and utilization technology. (Section 11c)
- DA shall develop a national program for the production of biofuel feedstock crops, ensure increased productivity and sustainable supply, and publish information on suitable areas for cultivation. (Section 11d)
- DOLE shall promote livelihood opportunities, productive employment, and recommend plans and policies to enhance the social impact of the NBP. (Section 11e)
- Tariff Commission shall create and classify a tariff line for biofuels and biofuel-blends. (Section 11f)
- LGUs shall assist the DOE in monitoring the distribution, sale, and use of biofuels and biofuel-blends. (Section 11g)
Prohibited Acts (Section 12)
- Diversion of biofuels for purposes other than those envisioned in the Act.
- Sale of biofuel-blended gasoline or diesel that fails to comply with the minimum biofuel-blend requirement.
- Distribution, sale, and use of automotive fuel containing harmful additives like MTBE.
- Non-compliance with the established guidelines of the PNS and DOE.
- False labeling of gasoline, diesel, biofuels, and biofuel-blends.
Penal Provisions (Section 13)
- Penalties of one to five years imprisonment and a fine ranging from ₱1,000,000 to ₱5,000,000 for prohibited acts.
- The DOE may confiscate non-compliant products and stop or suspend the operation of businesses for non-compliance.
- The DOE may impose administrative fines and penalties for violations.
Appropriations (Section 14)
- Funds necessary for initial implementation shall be taken from the current appropriations of the DOE.
- Subsequent funds shall be included in the annual General Appropriation Act.
Implementing Rules and Regulations (IRR) (Section 15)
- The DOE, in consultation with the NBB, stakeholders, and other agencies, shall promulgate the IRR within three months from the law's effectivity.
Congressional Oversight Committee (Section 16)
- A Biofuels Oversight Committee composed of 14 members from both Houses of Congress shall be constituted.
Benefits of Biofuel Workers (Section 17)
- The Act shall not result in the forfeiture or diminution of existing benefits enjoyed by sugar workers under the Sugar Amelioration Act of 1991.
- The NBB shall establish a mechanism for the benefit of other biofuel workers.
Special Clause (Section 18)
- The Act shall not be interpreted as prejudicial to clean development mechanism (CDM) projects that cause CO2 and greenhouse gas emission reductions by means of biofuel use.
Repealing Clause (Section 19)
- Repeals or amends inconsistent laws, presidential decrees, executive orders, rules, and regulations.
Separability Clause (Section 20)
- If any provision is declared unconstitutional, the remaining provisions shall remain valid and effective.
Effectivity (Section 21)
- The Act shall take effect 15 days after publication in at least two newspapers of general circulation.