Scope and Coverage
- Applies to all land transport diesel vehicles owned or registered under government departments, bureaus, offices, agencies, instrumentalities, government-owned and controlled corporations, and local government units.
Definitions
- Coconut Methyl Ester (CME): Fatty ester from coconut oil with alkyl groups from C8 to C18, suitable for compression ignition engines.
- CME-Diesel: Diesel fuel with a 1% volume blend of CME.
- Product Registration: Mandatory fuel additive registration per existing laws R.A. No. 8479 and R.A. No. 8749.
- Accreditation: Certification issued to CME manufacturers/suppliers complying with DOE technical criteria.
- PNS: Philippine National Standard setting quality parameters for petroleum products including CME.
- Diesel Requirements: Diesel consumption of all covered land transport vehicles.
Roles and Responsibilities of Agencies
- DOE: Lead implementing agency for CME-Diesel, responsible for product registration, accreditation, policy direction, quality monitoring, and strategic planning.
- DENR: Coordinates on emission testing data for air quality standards.
- DOST: Supports R&D for CME production and application.
- DOTC: Monitors emissions and keeps records of government-owned diesel vehicles.
- DTI-BOI: May provide investment incentives for CME production, enforcing quality standards.
- DOF: Develops fiscal and non-fiscal incentives to promote CME industry.
- PCA: Ensures supply security of coconut oil for CME production through agricultural programs and investment encouragement.
Supply and Distribution of 1% CME-Diesel
- Each government agency responsible for blending CME into its diesel fuel.
- Accredited CME suppliers must ensure supply and distribution per agency needs.
- Small packaging required for agencies lacking storage or dispensing infrastructure.
- Procurement limited to DOE-accredited suppliers with registered products.
- DOE-EUMB issues accreditation based on distribution, IEC, and after-sales support.
- DOE provides a list of accredited suppliers and registered products to agencies.
Mechanics of Blending
- CME may be directly blended into diesel tanks or pre-blended.
- Blending ratios are standard, e.g., 50 ml CME per 5 liters diesel for 1% blend.
CME Quality Monitoring
- CME must come from DOE-accredited suppliers and be DOE-registered.
- Products must be labeled with registration, supplier, batch info, manufacture and expiry dates.
- Quality Certificate indicating compliance with specific chemical and physical properties is mandatory.
- DOE OIMB and ERTLS conduct random sampling and testing.
- Regional DOE offices collect samples and submit reports.
- Monthly quality reports submitted to the Policy Advisory Group.
Reportorial Requirements
- All government agencies to submit monthly reports to DOE EUMB.
- Reports to include CME and diesel source, prices, consumption volume, mileage, and observations on emissions and engine performance.
- Regional DOE offices assist in data collation and submission.
Information Database
- DOE, with agencies, to develop a public-accessible database on vehicle and fuel data.
- Audit of the data for accuracy and integrity to be conducted.
- Data sharing aligned with ethical and conduct standards for public officials.
Policy Advisory Group
- Composed of DOE Undersecretary and senior officials from DENR, DOST, DOTC, DTI, DOF, PCA, Office of the President, and CME manufacturers/suppliers.
- Provides policy guidance for the CME program.
Working Group
- Chaired by DOE, composed of multiple government agencies, academe, industry and transport groups.
- Tasks include formulating CME strategic plans, conducting field tests, evaluating engine and emission impacts, developing safety and monitoring standards, IEC activities, stakeholder engagement, and reporting to the Policy Advisory Group.
Budget Appropriation
- Funds for implementation chargeable to agency budgets with standard auditing rules.
- Procurement follows Government Procurement Reform Act.
Sanctions
- Violations subject to criminal, civil, and administrative penalties under applicable laws.
Final Provisions
- Repeals inconsistent orders.
- Severability clause ensures remainder of the Circular remains effective if any part is declared unconstitutional.
Effectivity
- Circular takes effect 90 days after publication in two newspapers.
- Program duration is one year from effectivity date.