Biofuels Act (RA 9367)

The Act introduces mandatory use of biofuels in the fuel mix, as follows: a minimum 5% of bioethanol in the gasoline mix sold and distributed within 2 years; a minimum of 10% within 4 years is required. There is priority for locally produced bioethanol, and only in the case of shortage may it be imported. The Act also requires a minimum of 1% of biodiesel in the diesel mix within 1 year, and a minimum of 2% within 2 years.

Incentives are introduced to encourage biofuel projects – no specific tax on local or imported biofuels; exemption of raw materials (such as coconut, jatropha, cassava, corn, sugarcane etc.) from VAT; exemption from wastewater charges on water effluents; financial assistance to biofuel activities which are certified by the DOE and at least 60% of which are held by Filipino citizens or entities.

The DOE is required to prepare a National Biofuel Programme; a national biofuel board is created under the Act, to monitor and evaluate the Act and the National Programme’s implementation. The supply and price stability of sugar are guaranteed under the Act.

A Joint Administrative order, which was published in 2008, outlines Guidelines Govern¬ing the Biofuel Feedstocks Production, and Biofuels and Biofuel Blends Production, Distribution and Sale under the Biofuels Act.

Quantified targets

5% bioethanol in total gasoline fuel sold by 2009

Energy | Biofuels | Fixed Level Target | Base year: 2009

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