SCRIPT

A pleasant morning to everyone and today our presentation will all be about RA 9367 or
the Biofuels Act of 2006.

SLIDE 1: The Biofuels Act of 2006 that is signed by President Gloria Macapagal-Arroyo
mandates that all liquid fuels for motors and engines sold in the Philippines shall contain
locally-sourced biofuel components. It aims to develop and utilize indigenous renewable
and sustainable-sources clean energy sources to reduce dependence on imported oil.

SLIDE 2: The goal is to achieve energy independence, generate rural employment, and
reduce the emission of greenhouse gasses that contribute to global warming. Also, The
law mandates the biofuel blending of 20% bioethanol and 10% biodiesel by 2020.

SLIDE 3: Section 3 states that this aims to increase livelihood opportunities by enforcing
the use of biofuels such as to reduce toxic and greenhouse gas emissions.

SLIDE 4: In section 5 it states the Mandatory Use of Biofuels. — Every oil company in
the country must include at least 5% bioethanol in their annual gasoline fuel volume,
and recommend a 10% bioethanol blend in gasoline fuel for all oil companies within four
years.

SLIDE 5: Section 6 states that it provides additional incentives to encourage investments in

locally-produced biofuels, ensuring they meet minimum mandated blends and existing laws,
rules, and regulations.

SLIDE 6: Next, section 7 states that the DOE or Department of Energy is mandated to
implement the provisions of this Act within three months of its effectiveness. The
Philippine Biofuel Program aims to establish technical fuel quality standards, and
guidelines for the transport, storage, and handling of biofuels.

SLIDE 7: Section 8 introduces the Creation of the National Biofuel Board (NBB). The
National Biofuel Board (NBB) is established, chaired by the DOE Secretary, and involves
Secretaries of various agencies and generally has the authority to perform tasks, including
formulating policies and supervising production and quality regulations.

SLIDE 8: The National Biofuel Board (NBB), chaired by the DOE Secretary, is formed
with agency secretaries, a Technical Secretariat, and staffing determined by the Board,
subject to Department of Budget and Management approval.
SLIDE 9: The SRA, a member of the National Biofuel Board, is mandated to develop
policies supporting the Philippine Biofuel Program, ensure bioethanol feedstock supply,
and secure domestic sugar supply. The Act promotes sugarcane industry advancement
and competitiveness amidst global challenges.

SLIDE 10: Section 10: The National Biofuel Program (NBP) involves various
government departments, including Finance, Science and Technology, Agriculture,
Labor and Employment, Tariff Commission, and local government units. Local
government units assist in monitoring biofuel distribution and use.

SLIDE 11: RA 9367 Section 12 prohibits unauthorized biofuel diversion, non-compliant

biofuel-blended gasoline or diesel sales, harmful additive use, violating National
Standards guidelines, and false labeling. Penalties range from one to five years, and the
Department of Energy can confiscate non-compliant products.

SLIDE 12: Penal Provisions outline the penalties for individuals who willfully aid or abet
in a crime or cause another's act, with imprisonment of one to five years and fines
ranging from one to five million pesos. The Department of Energy can confiscate non-
compliant products and stop businesses.

SLIDE 13: Section 14 Appropriations states that the sums that may be necessary for
the initial implementation of this Act shall be taken from the current appropriations of the
DOE. Thereafter, the funds necessary to carry out the provisions of this Act shall be
included in the annual General Appropriations Act.

SLIDE 14: Next is Section 15: Implementing Rules and Regulations (IRR). In
collaboration with the NBB, stakeholders, and other relevant agencies, the DOE is
required to create the IRR for this Act within a three-month period. A draft must be
published in two widely circulated newspapers and remain on the DOE website for a
minimum of one month prior to the IRR going into force.

SLIDE 15: Section 16: Congressional Oversight Committee. A Biofuels Oversight

Committee will be established after the Act's effectiveness, consisting of 14 members,
co-chaired by Energy and Agriculture Committee Chairmen, and designated by the
Senate President and House Speaker, with at least one minority representative.

SLIDE 16: Section 17: The National Biofuel Board will also establish a mechanism
similar to the Sugar Amelioration Act for other biofuel workers, excluding sugar workers'
benefits.
SLIDE 17: Section 18. Special Clause. Projects under the Clean Development
Mechanism (CDM) that use biofuels to lower carbon dioxide (CO2) and greenhouse gas
(GHG) emissions shouldn't be seen negatively by this Act.

SLIDE 18: SECTION 19, also known as the Repealing Clause, allows for the repeal,
modification, or amendment of certain provisions of the Tax Reform Act of 1997.

SLIDE 19: Next is Section 20: Separability Clause. This Act makes sure that the
legitimacy and efficacy of the other provisions are unaffected by any unconstitutional
provision. In the event that any part or all of this Act is found to be invalid, the other
provisions will continue to be in full force and effect to the extent that they can be
distinguished from the invalid ones.

SLIDE 20: This Act will take effect fifteen (15) days following the completion of its
publication either in the Official Gazette or in a newspaper of general circulation in the
Philippines unless it is otherwise provided.

That will be all, thank you for listening!