Question & AnswerQ&A (Republic Act No. 9367)
The short title of Republic Act No. 9367 is the 'Biofuels Act of 2006.'
The main policy is to reduce dependence on imported fuels by mandating the use of biofuels, ensuring public health and environmental protection, promoting sustainable economic growth, expanding livelihood opportunities, and mitigating toxic and greenhouse gas emissions.
Biofuel refers to bioethanol and biodiesel and other fuels made from biomass primarily used for motive, thermal, and power generation, with quality specifications in accordance with the Philippine National Standards (PNS).
The Department of Energy (DOE), in consultation with the National Biofuel Board (NBB), stakeholders and other concerned agencies, is responsible for promulgating the implementing rules and regulations.
Within two years from the effectivity of the Act, gasoline fuel sold and distributed must contain at least 5% bioethanol by volume. Within four years, the NBB may recommend increasing this to a 10% bioethanol blend.
Violations can result in imprisonment from one to five years and fines ranging from One million pesos to Five million pesos. The DOE may also confiscate non-compliant products, stop business operations, and impose administrative fines.
The NBB monitors implementation of the National Biofuel Program, oversees supply and utilization of biofuels, recommends biofuel blend adjustments, promotes alternative fuel technology, and recommends actions regarding the economic, technical, environmental, and social impacts of the program.
Prohibited acts include diversion of biofuels to unauthorized purposes, selling biofuel blends below mandated levels, distribution of fuels with harmful additives exceeding limits, noncompliance with standards, and false labeling of fuels.
Incentives include zero specific tax on biofuel components, VAT exemptions on raw materials like coconut and sugarcane, exemption from wastewater charges for certain effluents, and priority financial assistance from government financial institutions.
The Sugar Regulatory Administration (SRA) will ensure sufficient sugar supply and stable prices by recommending importation and adjustments to tariff and customs parameters to meet domestic demand.
Key agencies include the DOE, DA, DOST, DOF, DOLE, DTI, DENR, Local Government Units, Tariff Commission, PCA, and SRA, each with specific roles in production, regulation, research, financing, and monitoring.
The Act does not diminish or forfeit benefits enjoyed by sugar workers under the Sugar Amelioration Act of 1991; the NBB will establish similar mechanisms for other biofuel workers.
Vehicles or engines that use alternative fuels such as biodiesel, bioethanol, natural gas, electricity, hydrogen, or automotive LPG instead of gasoline or diesel.
The DOE shall phase out use of harmful gasoline additives like MTBE within six months from the effectivity of the Act, in accordance with accepted international standards.