Following the signing of the Biofuels Act by President Gloria Macapagal-Arroyo, the Phillipine's Department of Energy (DOE) will conduct series of consultations with various stakeholders starting next week for the drafting of the implementing rules and regulations (IRR).

The DOE, in consultation with the National Biofuel Board (NBB), the stakeholders and other agencies concerned, is mandated to promulgate the IRR within three months upon effectivity of the Act. As created under the law, the NBB is chaired by the Energy Secretary. Its members include Secretaries of the Department of Trade and Industry (DTI), Department of Science and Technology (DOST), Department of Agriculture (DA), Department of Finance (DOF), Department of Labor and Employment (DOLE), the Administrators of the Philippine Coconut Authority (PCA) and Sugar Regulatory Authority (SRA). 

Energy Secretary Raphael Lotilla said that these series of consultations is expected to provide extensive inputs for the smooth implementation of the Act.

The Biofuels Act initially mandates a minimum of 1% biodiesel blend within three months from the effectivity of the Act, and at least 5% bioethanol blend within two years upon effectivity of the Act.

The Secretary added that the measure also mandates implementation of at least 2 % biodiesel blend within two years upon effectivity of the Act and 10 % bioethanol fuel within four years after the effectivity of the Act. He therefore stressed that the government, biofuels producers, oil firms and vehicle assemblers will work closely together to make this a reality as soon as the IRR is completed.

Parallel to the drafting of the IRR, the DOE is also mandated to prepare the Philippine Biofuels Program under its existing Alternative Fuels Program. Among others, the Biofuels Program includes the establishment of support facilities to ensure security of feedstock supply and investments in supply infrastructure, directions on the availability of alternative fuel technologies for vehicles, engines and parts and identification of other viable feedstock for the production of biofuels.

Meanwhile, the DOF is mandated to monitor the production and importation of biofuels through the Bureau of Internal Revenue and Bureau of Customs. On the labor side, DOLE is in charge of promoting gainful livelihood opportunities and facilitating productive employment by ensuring workers’ access to productive resources and social protection coverage, especially in the countryside. With the assurance of a market for biofuels, there is an expected increase in job opportunities for farmers and other people in the countryside. The Tariff Commission is likewise tasked to create and classify a tariff line for biofuels and biofuel-blends, in consideration of WTO and AFTA agreements.

The DOST and DA, on the other hand, shall work together to identify and develop viable feedstock and technology for the production of biofuels. In particular, the DA is mandated to develop a national program for the production of crops, which shall be used as feedstock supply for biofuels. The agency must ensure the increased productivity and sustainable supply of the feedstock, and publish information on available and suitable areas where such crops may be cultivated and produced.

The DOE is also mandated to establish technical fuel quality standards for biofuels and bio-fuel blended gasoline and diesel which comply with the PNS. The technical fuel specifications for fuel bioethanol and E-gasoline as well as for coco methyl ester or CME have already been promulgated into a PNS. Meanwhile, the draft fuel quality specifications for the 1% blended biodiesel or B1 and a generic pure biodiesel or B100 are currently undergoing deliberation.

“The implementation of this Act will speed up our efforts towards attaining energy security and self sufficiency for the country. In fact, East Asian Leaders, in the recently concluded ASEAN Summit, have strongly supported the use of biofuel through the signing of the agreement that would help reduce dependence on conventional sources of energy.

The Cebu Declaration on East Asian Energy Security recognized that while fossil fuels will continue to be used for a considerable period of time, greater energy security could be attained by among others, promoting energy efficiency, conservation and cleaner technologies, increasing capacity and reducing costs of alternative energy resources, encouraging use of biofuels and promoting free trade and harmonizing standards on biofuels.