Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

House Bill No, __7059_

Introduced by Representatives Lord Allan Jay Q. Velasco and Kristine Singson-Meehan

EXPLANATORY NOTE

Republic Act (R.A.) No, 9367, also known as the Biofuels Act of 2006, was primarily enacted to
spur agricultural development and the transition to a cleaner fuel, among others. Presently, the
aforementioned objectives were not totally achieved.

R.A. No, 9367 mandated that locally-produced bioethanol be prioritized in order to provide
livelihood to our farmers. Other incentives were included in the law to encourage investments in
the production, distribution, and use of locally-produced bioethanol. However, due to our
insufficient feedstock supply, we resort to importation. Moreover, increasing locally produced
bioethanol would entail the conversion of more agricultural lands from food production to fuel
supply, thereby putting more strain on the country's food security as against its energy needs,
Several studies by environmental groups have shown that biofuel production takes a heavy toll
on the environment and is hurting the world’s poor through higher food prices.

Increasing the biofuel blends would require more bioethanol. Given our perennial lack of raw
materials or supply towards this end, this would necessitate more importation of bioethanol
which would ultimately be counterproductive to the avowed goal of helping our local farmers.
The increase use of land for biofuels would also result in higher prices for food staples such as
sugar, exacerbating the already high inflation felt by our kababayans as a result of the double
whammy from the current pandemic and the war in Ukraine.

On the other hand, the original standards for more efficient and cleaner fuel had been practically
achieved even without biofuels. The advancement in technology in producing today’s imported
fuel have resulted in less carbon emissions and pollution. It has even met the strict emission
standards from Europe and elsewhere. Newer cars and machines are now more efficient in
consumption of fuel. Electric vehicles are also now starting to be available locally.


With the price of fuel drastically increasing, adding more burden to lives of ordinary Filipino
families, there is an urgent need to revisit R.A. No. 9367 in order to help ease the burden of the

consuming public.

[STINE SINGSON-MEEHAN

Representative
2™ District — locos Sur

KLLAN JAY Q. VELASCO

Lone Distt’, Marinduque


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Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

No. 7059

Introduced by Representatives Lord Allan Jay Q. Velasco and Kristine Singson-Mechan

AN ACT
AMENDING SECTION 5 OF REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS
THE “BIOFUELS ACT OF 2006”

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 “Murang Langis” Act.

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to protect public
interest by providing reasonably-priced petroleum products to consumers. Towards, this end, the
State shall implement policies and programs to ensure the delivery of affordable fuel to the
public.

Sec. 3. Section 5 of Republic Act No. 9367, otherwise known as the “Biofuels Act of 2006” is
hereby amended to read as follows:

“Sec. 5. Mandatory Use of Biofuels. — Pursuant to the above policy, it is hereby mandated
that all liquid fuels for motors and engines sold in the Philippines shall contain locally-
sourced biofuels components as follows:
“5.1 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.
“5.2 Within four years from the effectivity of this Act, the NBB created under this Act
is empowered to determine the feasibility and thereafter recommend to DOE to mandate


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@ minimum of ten percent (10%) blend of bioethanol by volume into all gasoline fuel
distributed and sold by each and every oil company in the country,

“In the event of supply shortage of locally-produced bioethanol during the four-year
period, oil companies shall be allowed to import bioethanol but only to the extent of the
shortage as may be determined by the NBB.

“5.3 Within three months from the effectivity of this Act, a minimum of one percent
(1%) biodiesel by volume shall be blended into all diesel engine fuels sold in the
country: Provided, That the biodiesel blend conforms to PNS for biodiesel.

“Within two years from the effectivity of this Act, the NBB created under this Act is
‘empowered to determine the feasibility and thereafter recommend to DOE to mandate a
minimum of two percent (2%) blend of biodiesel by volume which may be increased
taking into account considerations including but not limited to domestic supply and
availability of locally-sourced biodiesel component.

“PROVIDED, THAT THE PRESIDENT, UPON THE RECOMMENDATION OF
THE NBB AND THE DOE, MAY SUSPEND THE IMPLEMENTATION OF
THIS SECTION, OR ANY PART THEREOF, THROUGH AN EXECUTIVE
ORDER, FOR A PERIOD NOT LONGER THAN ONE (1) YEAR, IF, AS A
RESULT OF ITS IMPLEMENTATION, THE PRICE OF BLENDED
GASOLINE AND/OR DIESEL ENGINE FUELS WILL BE HIGHER BY AT
LEAST FIVE PERCENT (5%) COMPARED TO PURE GASOLINE AND/OR
DIESEL ENGINE FUELS.”

Sec. 4. Jmplementing Rules and Regulations. ~ The Department of Energy, in consultation
with the National Biofuels Board, the stakeholders and other agencies concerned, shall within
thirty (30) days from the effectivity of this Act, promulgate the rules and regulations to
‘effectively implement the provisions of this Act.

Sec. 5. Repealing Clause ~ All laws, decrees, ordinances, rules, regulations, other issuances or
Parts thereof which are inconsistent with this Act are hereby repealed, amended or modified
accordingly.

Sec. 6. Effectivity. — This Act shall take fifteen (15) days following its complete publication
in two (2) newspapers of general circulation or in the Official Gazette.

Approved,