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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 LiGHT 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

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Vehicles using biodiesel emit less air pollution than those using regular

diesel.

Toxic air pollutants

Hydrocarbons

Carbon dioxide

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)

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 %.

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/oroxygenates. Oxygenates are substances which, when added to

gasoline, increase the amount of oxygen in that gasoline blend.

Slide 11

Salient Features

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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

Slide 12

Acts prohibited by RA 9367

diversion of biofuels, whether locally-produced or imported, topurposes 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

Penalties provided by RA 9367

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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 in2008 (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

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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.