Arroyo signs Biofuels Act into law

President Gloria Macapagal Arroyo on Thursday announced that she has signed into law the Biofuels Act (RA 9367) that provides that all liquid fuels for vehicles sold in the country “shall contain locally produced bio-fuel components." Arroyo made the announcement during a roundtable discussion at the 12th summit of the Association of Southeast Asian Nations (Asean) in Cebu on regional security, migrant workers, energy and the environment matters. She said she signed the bill into law a few days ago, along with other papers, and a ceremonial signing is scheduled on January 30. Under RA 9367, a 10 percent blend would be mandated within four years, with the approval of the National Biofuels Board, which will be created under the law. A one-percent biodiesel blend will be mandated within three months. It will be increased to two percent in two years. The law also seeks to ensure the steady domestic supply of sugar, coconut and other raw materials to be used in producing biofuels. The Sugar Regulatory Administration and the Philippine Coconut Authority will be tasked to monitor and regulate the export and import of such goods. It provides an incentive of zero-rated specific tax on the biofuels component of blended gasoline or diesel. This is aside from the value-added tax exemption for the sale of raw materials in the production of bio-fuels, exemption from wastewater charges under the Clean Water Act in the production of biofuels and the extension of financial assistance from government financial institutions for the production, storage, handling and blending of biofuels. Energy Secretary Raphael Perpetuo Lotilla said he anticipates a learning curve in the implementation of the new law and is confident that there will be a smooth execution within a year. He said the implementing rules and regulations are being worked on and would be issued in a few months. He said the Philippines is already producing fuel flexible vehicles (FFVs) that can run on 20 percent ethanol. He said Mrs Arroyo wants the use of 85 percent ethanol blend in the Asian region. The President said it is important to have an agreement on biofuel blends and production of FFVs in the Asean region. -GMANews.TV