SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
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SENATE 
S.B. NO. __ 
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Introduced by SENATOR SERGIO OSMENA III 
AN ACT AMENDING REPUBLIC ACT NO. 9367, 
OTHERWISE KNOWN AS THE "BIOFUELS ACT OF 2006" 
EXPLANATORY NOTE 
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The maintenance turn-around of the SPEX Malampaya Onshore Natural Gas Plant set from 
March 15 to April 14, 2015 would result in the total cut-off of the supply of natural gas to the 
three (3) natural gas-fired power plants in Luzon, i.e., the Sta. Rita, San Lorenzo and lIijan, with 
a total installed capacity of 2,700 MW. As in previous similar situations, to ensure continuity of 
generation supply during the said period, these three power plants would have to use alternate 
fuel, with Sta. Rita (1000 MW) and San Lorenzo (500 MW) running on liquid condensate fuel 
and lIijan (1200 MW) using biodiesel or industrial diesel oil. 
Meanwhile, it has been reported that only Block 1 (600 MW) of the lIijan plant using 
alternate fuel would be available but at a limited capacity of 420 MW only, instead of 500 MW 
owing to lower combustion of biodiesel vis-a-vis pure diesel. As a result, and further taking into 
account delays in the commissioning of committed power projects as well as the increased 
levels of unplanned power station outages, the Luzon grid is projected to face inadequate 
contingency and operating reserve capacity during the summer months of 2015 and 2016. 
While new generation plants are being built, many are expected not to be online during the 
said period. 
A short term solution to mitigate the narrow reserve margin and augment the power 
supply during periods of natural gas supply shortages is to allow Natural gas plants in Batangas 
province to use pure or straight-run diesel as their alternative fuel. To achieve this objective, 
however, would require an amendment to Section 5 of Republic Act No. 9367, otherwise 
known as the "Biofuels Act of 2006", that would exempt the lIijan plant and other similarly 
situated generation plants from compliance with the minimum biodiesel blend prescribed 
therein. 
The immediate approval ofthis bill is therefore earnestly sought. 
/J ~ 
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~R~IO OSMENA III 
Senator 


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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
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SENATE 
S.B. NO. __ 
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Introduced by: SENATOR SERGIO OSMENA III 
AN ACT 
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AMENDING REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS THE "BIOFUElS ACT OF 2006" 
Be it enacted by the Senate and the Hause of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. 
Section 5 of Republic Act No. 9367, otherwise known as the "Biofuels 
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Act," is hereby amended to read as follows: 
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"5Ee. 5. Mandatory Use of Biofuels. - Pursuant to the above policy it is 
hereby declared that all liquid fuels for motors and engines sold in the 
Philippines shall contain locally-sourced biofuels components as follows: 
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5.3 Within three months from the effectivity of this Act, a minimum of one 
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percent (1%) biodiesel by volume shall be blended into all diesel engine fuels 
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sold in the country. Provided, That the biodiesel blend conforms to PN5 for 
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biodiesel. 
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Within two years from the effectivity of this Act, the NBB created under 
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this Act is empowered to determine the feasibility and thereafter recommend to 
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DOE to mandate a minimum of two percent (2%) blend of biodiesel by volume 
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which may be increased taking into account considerations including but not 
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limited to domestic supply and availability of locally-sourced biodiesel 
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component: PROVIDED, THAT NATURAL GAS POWER GENERATING PLANTS 
MAY USE PURE OR STRAIGHT-RUN DIESEL AS THEIR ALTERNATIVE FUEL 
DURING SHORTAGES OF NATURAL GAS SUPPLIES." 
SEC. 2. 
Implementing Rules and Regulations. - The Department of Energy (DOE) 
shall, within thirty (30) days from the effectivity of this Act, promulgate the implementing rules 
and regulations of this Act. 
SEC. 3. 
Separability Clouse. - Should any provision of this Act be declared invalid, 
the remaining provisions shall continue to be valid and subsisting. 
SEC. 4. 
Repealing Clouse. All laws, executive orders, or administrative orders, 
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rules and regulations or 
parts thereof, which are inconsistent with this Act, are hereby 
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amended, repealed or modified accordingly. 
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SEC. 5. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation in the Philippines. 
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Approved, 
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