Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
MANDATING THE USE OF ETHANOL AS ALTERNATIVE TRANSPORT FUEL, 
ESTABLISHING FOR THE PURPOSE THE NATIONAL FUEL ETHANOL 
PROGRAM, APPROPRIATING FUNDS THEREFOR 
The dependence of the Philippines on imported petroleum creates a major strategic 
vulnerability for the nation, with majority of the energy supply of the country reliant on 
foreign sources. From economically damaging Arab oil embargoes of 1973-1974 and 
1979 to the recession precipitated by rising oil prices which began in 1999, the 
economic stability of the Philippines has too often been shaken by economic forces 
outside its borders. 
This bill seeks to shift Philippines’ dependence away from foreign petroleum as an 
energy source toward alternative, renewable, and domestic agricultural sources. Its 
aim is to convert the current petroleum trade deficit to a trade balance by replacing 
foreign sources of supply with steady increases of ethanol fuels through domestic 
production. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
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March 23, 2021
1:13 PM


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
MANDATING THE USE OF ETHANOL AS ALTERNATIVE TRANSPORT FUEL, 
ESTABLISHING FOR THE PURPOSE THE NATIONAL FUEL ETHANOL 
PROGRAM, APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress  
assembled: 
SECTION 1. Short Title. — This Act shall be known as the “Fuel Ethanol Act.” 
SECTION 2. Declaration of Policy. — It is declared the policy of the State to (a) 
ensure a continuous, adequate, and  economic supply of energy with the end in view 
of ultimately achieving energy independence through the integrated and intensive 
exploration, production, management and development of the country’s indigenous, 
renewable energy resources, and to (b) pursue economic growth by providing 
opportunities for generating income, enhancing productivity, and promoting 
industrialization and employment based on sound agricultural development. 
SECTION 3. Definition of Terms. - As used in this Act, the term: 
(1) "Ethanol" – refers to the biofuel made through fermentation and then distillation of 
starch and sugar crops such as maize, sorghum, potatoes, wheat, sugar-canes, 
cornstalks, fruit and vegetable waste.
(2) “Pro “Program” – refers to the National Fuel Ethanol Program.
SECTION 4. The Fuel Ethanol Program. — 
(1) A fuel ethanol program shall be established nationally to provide for the 
development, promotion and commercialization of fuel ethanol by implementing 
policies, mechanisms, and procedures that encourage research and development, 
technology transfer, and investments in fuel ethanol production, distribution, and 
utilization.
(2)  On  the  basis  of  these  specifications,  the  Department  of  Energy  (DOE),  in 
coordination with other government agencies, shall conduct consultations with the 
various stakeholders including but not limited to oil companies, car manufacturers, 
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and sugar and alcohol industry players. 
 
SECTION 5. Implementing and Coordinating Agencies. —  
(1) The DOE shall be the lead implementing agency and shall set the policy directions 
to meet the specific targets of the Program. 
(2) The Program shall be established in coordination with relevant government 
agencies including but not limited to the following agencies and their respective 
functions in relation thereto: 
a. DEPARTMENT OF AGRICULTURE (DA). — It shall ensure increased 
productivity and sustainable supply of ethanol feedstocks. It shall institute a 
program which would guarantee that a certain percentage of the total national 
production of sugar shall be allocated for fuel ethanol production; 
b. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR). 
— It shall facilitate the issuance of Environmental Compliance Certificates and 
other requirements related to the Fuel Ethanol Program and provide technical 
support related to emissions testing and standard-setting of ethanol vehicles with 
the view to improve the air quality; 
c. DEPARTMENT OF SCIENCE AND TECHNOLOGY (DOST). — It shall 
provide R&D and technical support in propagating feedstock cultivation and fuel 
ethanol production; 
d. DEPARTMENT OF TRADE AND INDUSTRY (DTI). — It shall ensure the 
inclusion in its Motor Vehicle Development Program the development and 
promotion of the manufacture and/or investment in production of gasoline-fed 
vehicles that could effectively utilize up to 25% ethanol blend; 
e. GOVERNMENT FINANCING INSTITUTIONS (GFIs). — GFIs shall make 
available preferential financing to investment/developmental activities with the 
view to accelerate the development of the fuel ethanol industry. 
 
SECTION 6. Implementing Rules and Regulations. —  The DOE shall, in 
consultation with the relevant government agencies mentioned in the preceding 
section, industry participants, non-governmental organizations and end-users, 
promulgate the implementing rules and regulations of this Act, within six (6) months 
from the effectivity of this Act. 
 
SECTION 7. Fuel Ethanol Fund. — One percent (1%) of the total excise tax collected 
from the sale of fuel ethanol shall be set aside by the Bureau of Internal Revenue 
(BIR) to constitute a Fuel Ethanol Fund to support the development, promotion and 
commercialization of fuel ethanol. This fund shall be managed and administered by 
the DOE for these purposes. 
 
SECTION 8. Penalty Clause. — The DOE shall formulate and promulgate appropriate 
penalties for any person or entity that willfully violates rules and regulations provided 
in this Act. 
 
SECTION 9. Separability Clause. — If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the Act or the provision not otherwise affected shall 
remain valid and subsisting. 
 
SECTION 10. Repealing Clause. -  Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 


 
 
or inconsistent with the provisions of this Act is hereby repealed, modified or 
amended accordingly. 
 
SECTION 11. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
 
Approved,