THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE: PHILIPPINES ) 
First Regular Session 
1 
Introduced by Senator Aquilino Q. Pimentel, Jr. 
Article 11, Section 9 of the Constitution provides that the State shall 
endeavor to “free the people from poverty through policies that provide 
adequate social services, promote full employment, a rising standard of 
living, and an improved quality of life for all.” Section 14 of the same 
Article likewise mandates the State “to protect and advance the right of 
the people to a balanced and healthful ecology.” 
_ L  
The country’s economic condition, coupled with the recent fare and 
power rate hikes, aggravates the sufferings of a great number of people 
especially the marginalized sectors of our society. Hence, there is really 
an urgent need for the government to institute a program that will reduce 
our dependence on imported petroleum products, the price of which 
greatly affects the cost of living. It likewise provides sustainable 
development by participating in the global efforts in combating climate 
change. 
This bill, therefore, seeks to encourage and promote the 
se of 
ethyl alcohol or ethanol as an alternative transport fuel through 
Fuel 
Ethanol Program. It shall revive the National Alcogas Program, 
past 
governmental initiative of producing non-conventional and repleni hable 
various positive effects on the economy. This will also alleviate the plight 
of the agricultural sector, especially the sugar industry. Likewise, this 
will generate employment, enhance the technological and engineering 
position of the country and most of all provide a continuous flow of 
purchasing power to the rural areas. 
sources of energy and fuel. Production of ethyl alcohol or ethanol i 
has 
To ensure the success of the ethanol program, various agencies are 
mandated to coordinate with the Department of Energy by providing the 
necessary programs and projects for its implementation. 
In view of the foregoing, early passage of this bill is earnestly 
requested. 


'0'1 
/.\& 
10 
THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
1 
, 
.. 
. .. 
ri:!,j 
6. 
'i; 
htro duce d 
entel, Jr. 
AS 
SE 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
. 1. Title. - This Act shall be known as the "Fuel Ethanol Act of 
2004". 
- 
.- 
ecla~~tion 
of olicy. - The State shall pursue a policy of 
economic growth by providing a more equitable distribution of opportunities, 
income, and wealth and an expanding productivity as the key to raising the 
quality of life for all. To attain these goals, it shall promote industrialization 
and full employment based on sound agricultural development. Tow rds this 
end, it is imperative to launch a program that shall promote the use f ethanol 
as an alternative transport fuel towards a shift in energy utiliza 'on from 
depletable fuels to regenerative forms, spur economic activities in the 
countryside while maintaining a balanced and healthful ecology r 
~
o
~
~
~
i
o
~
 
on Use of E t ~ a ~ ~ ~ .  
- The use of ethyl alcohol or 
ethanol as an alternative transport fuel is hereby promoted through the Fuel 
Ethanol Program. The Department of Energy (DOE) shall be the lead agency in 
the implementation of the same. 


economic disturbance to other agricultural sectors; 
Department of Trade and Industry (DTI) - It shall plan 
3. 
design and manufacture car and truck engines that’will 
accommodate this programmed shift to ethanol fuels and 
incorporate this into the progressive car and truck 
manufacturing program; and 
and 
2 


4. 
Department 
of 
Finance 
(DOF) 
- 
It 
shall 
make 
recommendations, in consultation with the DOE and DA, on 
- - 
-. 
the extent of reduction or elimination of sales taxes on 
ethanol to compete effectively with gasoline prices at the 
pump stations. 
siations.. - The amount necessary for t e initial 
implementation of this Act shall be charged against the curre t year’s 
appropriations of the Department of Energy. Thereafter, the amount ecessary 
to effectively carry out the provisions of this Act shall be included in the 
General Appropriations Act of the year following its enactment into law and 
thereafter. 
1 
SEG. 6. 
SEC. 7. Credit F a c ~ ~ i t ~ ~ ~  
for F ~ r ~ e ~ s ‘  
CSQ eralh~ves. Government and 
private financial institutions are hereby mandated to provide credit facilities to 
farmers’ cooperatives and individual farmers who shall participate in the mass 
production of the raw materials for ethanol. 
~ ~ ~ 1 a t ~ Q n s .  
- The Department of 
Energy, in coordination with the Committees on Trade and Commerce and 
Agriculture of the Senate and House of Representatives, and other concerned 
agencies, shall promulgate the implementing rules and regulations for this Act, 
within one (1) year after the enactment of the Act: Provided, That rules and 
.- 
regulationcissued by other government agencies and instrumentalities for the 
production of ethanol not inconsistent with this Act shall supplement the rules 
and regulations issued by the Department, pursuant to the provisions of this 
Act. Provided, further, that all activities, projects and programs undertaken for 
purposes of this Act shall strictly comply with the provisions of the “P ’lippine 
Clean Air Act of 1999” and the “Philippine Clean Water Act of 2004”. 
~
~
~
~
- There i hereby 
created a Joint Congressional Oversight Committee to monitor the 
I 
3 


implementation of this Act and to review the implementing rules and 
regulations promulgated by the Department which shall be composed of five (5) 
Representatives to be appointed by the Senate President and the Speaker of the 
House of Representatives, respectively. 
- 
- 
- 
p
~
a
~
~
~
~
 
Clause. - All laws, presidential decrees, executive 
orders, presidential proclamations, rules and regulations or parts thereof 
inconsistent with this Act are hereby repealed or modified accordingly. 
6. 11. ~ ~ p a ~ a b i ~ ~ t ~  
Clause. If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivty of the 
other provisions hereof. 
SEC. 12. E € ~ e ~ t i ~ i ~ y .  
- This Act shall take effect upon its app oval and 
completion of publication in at least two (2) national newspapers of general 
circulation. 
I 
Approved, 
4