Philippines' Arroyo signs Biofuels Act, calls on ASEAN to invest in flex-fuel vehicles

The president of the Philippines, Gloria Macapagal Arroyo, has signed into law the Biofuels Act of 2006 mandating the mixing of biofuels with gasoline to reduce the country’s consumption of imported oil. Mrs. Arroyo announced the signing of the law in a televised roundtable discussion in Malacañang yesterday. She also called on partners within the Association of Southeast Asian Nations (ASEAN) to start producing flex-fuel vehicles and to observe regionally integrated biofuel standards.

At present, the island state imports 30% of its liquid fuel requirements. The Biofuels Act mandates that within two years of its effectivity, the annual total volume of gasoline sold and distributed in the country should contain at least five percent bioethanol. The law also mandates that the bioethanol content of all gasoline sold in the country should rise to at least 10 percent by the fourth year of the law’s effectivity.

Diesel fuels sold in the country are also required to have at least a one percent blend of biodiesel upon the effectivity of the Biofuels Act’s implementing rules and regulations. This required blend for diesel fuels would be increased to two percent within two years from the effectivity of the law’s implementing rules and regulations.

The law further provides tax exemptions, financial assistance and other incentives to stimulate investments in the biofuels sector.

The mixing biofuels with gasoline and diesel is expected to save the country more than €555/US$715 million worth of oil imports annually, savings which may go to infrastructure projects, spurring economic growth and social development, especially in the poor countryside:
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The 2006 Biofuels Act was approved by the congressional bicameral conference committee after a marathon seven-hour session last November 23, 2006. Sponsors of the bill – Senators Richard Gordon and Aquilino Pimentel Jr. – said that enacting the measure means huge dollar savings on imported fossil fuel. These savings, they explained, may go to local infrastructure projects, spurring economic growth and development especially in the countryside.

"This measure will promote the use of alternative, renewable energy sources, particularly biofuels that will benefit the country tremendously in terms of reducing our dependence on imported oil," Gordon said.

He and Pimentel added that the measure will protect the environment, generate jobs, and create livelihood opportunities.

President Arroyo further stressed the need for the development of flex-fuel cars within the Association of Southeast Asian Nations (ASEAN). "It is necessary that cars and trucks use machines that can use this biofuel, so it is important that this is agreed on by the whole region. The whole of Asia must observe the same standards."