PGMA signs into law Biofuels Act of 2006

President Gloria Macapagal-Arroyo formally signed into law today Republic Act No. 9367, also known as the "Biofuels Act of 2006."

R.A. No. 9367 will promote the use of alternative transport fuels consistent with the Declaration on East Asian Energy Security ratified by the 16 heads of state of the Association of Southeast Asian Nations (ASEAN) and its dialogue partners during the just-concluded 12 ASEAN Summit in Cebu.

The President affixed her signature on the new law, along with Senate President Manuel Villar and House Speaker Jose de Venecia Jr. during the ceremonial signing held at Malacañang’s Rizal Hall this morning.

Among the lawmakers who witnessed the signing of R.A. 9367 were Bukidnon 3rd District Rep. Juan Miguel Zubiri, principal author of the law; House Energy Committee Chairman Alipio Badelles, Senior Deputy Majority Leader Arthur Defensor and Bacolod City Rep. Monico Puentebella.

Also present were Sen. Miriam Defensor-Santiago, chairperson of the Senate Committee on Energy, Execuitve Secretary Eduardo Ermita and Energy Secretary Raphael Lotilla.

The Chief Executive actually signed R.A. 9367 last Jan. 12, the day she flew to Cebu to chair this year’s summit of the leaders of ASEAN and its dialogue partners.

The Biofuels Act of 2006 seeks to reduce dependence on imported fuels with due regard to the protection of public health, the environment and natural ecosystems consistent with the country’s sustainable economic growth that would expand opportunities for livelihood.

The Act mandates the use of biofuels as a measure to develop and utilize indigenous renewable and sustainably-sourced clean energy sources to reduce dependence on imported oil.

It also intends to mitigate toxic and greenhouse gas (GHG) emissions and increase rural employment and income.

It ensures the availability of alternative and renewable clean energy without any detriment to the natural ecosystem, biodiversity and food reserves of the country.

The Act also mandates that within two years from its effectivity, all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components of at least five percent bioethanol in the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country.

Biofuel refers to bioethanol and biodiesel and other fuels made from biomass and primarily used for motive, thermal and power generation with quality specifications in accordance with the Philippine National Standards (PNS).

Senate Energy Committee Chairperson Santiago lauded the approval of the Biofuels Act, saying the country would now have its own homegrown and renewable sources of energy as the first benefit.

She said the Philippines would realize a huge savings as statistics show that the government is spending around P280 billion on oil consumption annually.

"Definitely, we can save at least 10 percent or P28 billion a year with this Act. Our environment would become greener and cleaner since oil pollutants would be eliminated from our atmosphere. There would be more income for farmers while for the consumers, it will mean eventually lower prices, whether gasoline or diesel," she said.

Ford Group Philippines Chairman Henry T. Co also expressed full support for the mandatory use of biofuel by oil companies based in the Philippines.

"The plant (Ford Group) would definitely and directionally use that, whether in some form of alternative fuel technology. It may not be directable focus but we will use the selectable fuels because we feel it is the most appropriate technology in the country. We have a lot of resources to support ethanol production," Co said.