REPUBLIC ACT NO.

9367
BIOFUELS ACT PF 2006
An Act to direct the use of Biofuels, establishing for
this purpose the biofuel program, appropriating
funds therefor, and for other purposes.
SECTION 1: Short Title
This section establishes the official title of
the legislation as the "Biofuels Act of 2006."

SECTION 2: Declaration of Policy

The State aims to decrease dependence on imported
fuels while considering public health, the environment,
and sustainable economic growth. Mandating the use of
biofuels is intended to develop indigenous renewable
energy sources, reduce toxic and greenhouse gas
emissions, increase rural employment and income, and
ensure the availability of alternative clean energy without
harming the natural ecosystem.
 SECTION 3:
Definiton of Terms Along with a number of government agencies
like the Department of Agriculture (DA) and the
This section provides a common Department of Energy (DOE). It also outlines
understanding of essential terminology used international agreements like the World Trade
in the Act. Terms including "bioethanol," Organization (WTO) and standards like the
"biodiesel," "biomass," and "alternative fuel Philippine National Standards (PNS).
vehicles/engines" are defined.
SECTION 4:
Phasing Out of the Use of Harmful
Gasoline Additives and/or Oxygenates
The DOE shall gradually phaseout the use
of harmful gasoline additives within six
months from rhe effectivity of the act.

SECTION 5:Mandatory Use of Biofuels

(a) Within 3 months from the effectivity of the act, a
minimum of 1% biodiesel by volume shall be blended
into diesel engine fuels sold.
(b) After two years from the effectivity of the act, it is
mandated that at least 5% bioethanol shall comprise
the annual total volume of gasoline fuel sold and
distributed.
(c) After four years from the effectivity of the act, a
minimum of 10% blend of bioethanol by volume into
gasoline fuel to be sold and distributed.
 To encourage investments in
production, distribution, and use of

SECTION 6: locally-produced biofuels, incentives

are provided.
Incentive Scheme A. Specific Tax
B. Value Added Tax
C. Water Effluents
D. Financial Assistance.
 SECTION 7: SECTION 8:
Powers and Functions of Creation of the National
the DOE Biofuel Board (NBB)
DOE is hereby mandated to take It shall be composed of the Secretary of the
appropriate and necessary actions to DOE as Chairman.
implement the provisions of this Act.
DOE Secretary, in his capacity as
Chairperson, shall, within one month from
the effectivity of this Act, convene the NBB.
The Board shall be assisted by a Technical
Secretariat attached to the Office of the
Secretary of the DOE.
 SECTION 9:
Powers and Functions of
the NBB.
a) Monitor and evaluate the National
Biofuel Program (NBP) implementation
b) Monitor biofuel supply, recommend
measures for shortages, and oversee
reporting
c) Review and suggest adjustments to
biofuel blend mandates
d) Recommend programs for alternative
fuel technology and maximize biofuel use
e) Advise on biofuel use in air transport
f) Recommend actions for NBP
implementation and assess impacts
 SECTION 10:
Security of Domestic
Sugar Supply
Ensure domestic sugar supply meets demand
and stabilize prices
Recommend sugar importation when necessary
and adjust import parameters
 SECTION 11:
Role of Government Agencies
a. Monitor the production and importation of biofuels.
b. The DOST and the DA shall coordinate in identifying and
developing viable feedstock for the production of biofuels.
c. Develop and implement a research and development
program.
d. The DA through its relevant agencies shall:
1. Within three months from the effectivity of this Act, develop
a national program for the production of crops for use as
feedstock supply.
2. Shall institute a program that would guarantee that a
sufficient and reliable supply of feedstocks.
3. Publish information on available and suitable areas for
cultivation and production of such crops.
 SECTION 11:
Role of Government Agencies
cont...

e. The DOLE shall:

1. Promote gainful livelihood opportunities and facilitate
productive employment.
2. Ensure the access of workers to productive resources and
social protection coverage.
3. Recommend plans, policies and programs that will
enhance the social impact of the NBP.
f. Shall create and classify a tariff line for biofuels and biofuel-
blends.
g. The local government units (LGUs) shall assist the DOE in
monitoring the distribution, sale and use of biofuels and
biofuel-blends.
SECTION 12:
Prohibited Acts
The following acts shall be prohibited:

a) Diversion of biofuels.
b) Sale of biofuel-blended gasoline or diesel
that fails to comply with the minimum
biofuel-blend by volume.
c) Distribution, sale and use of automotive
fuel containing harmful additives.
d) Noncompliance with the established
guidelines of the PNS and DOE adopted for
the implementation of this Act; and
e) False labeling of gasoline, diesel, biofuels
and biofuel-blended gasoline and diesel.
SECTION 13:
Penal Provisions
Any person, who willfully aids or abets in the
commission of a crime prohibited herein or who
causes the commission of any such act by another
shall be liable in the same manner as the principal.

Shall suffer the penalty of one year to five years

imprisonment and a fine ranging from a minimum of
One million pesos (1,000,000.00) to Five million pesos
(5,000,000.00).

The DOE shall confiscate any amount of such

products that fail to comply with the requirements of
Sections 4 and 5 of this Act, and implementing
issuances of the DOE.
SECTION 13:
Penal Provisions
cont...

The DOE is also empowered to stop and suspend the

operationof businesses for refusal to comply with any
order or instruction of the DOE Secretary in the
exercise of his functions under this Act.

The DOE is empowered to impose administrative

fines and penalties for any violation of the provisions
of this Act, implementing rules and regulations and
other issuances relative to this Act.
SECTION 14: Appropriations

Such sums as may be necessary for the initial

implementation of this Act shall be taken from the
current appropriations of the DOE.

The fund necessary to carry out the provisions of this

Act shall be included in the annual General
Appropriations Act.
 SECTION 15:
Implementing Rules and
Regulations (IRR) Provided, That prior to its effectivity, the draft of
the IRR shall be posted at the DOE website for at
The DOE, in consultation with the NBB, the
least one month, and shall be published in at
stakeholders and other agencies concerned,
least two newspapers of general circulation.
shall within three months from the effectivity
of this Act, promulgate the IRR of this Act:
 A Congressional Oversight Committee called the
Biofuels Oversight Committee is created upon the

SECTION 16: law's enactment.

Congressional The Committee will have 14 members.

Co-chairs will be the Chairmen of the Committees
Oversight Committee on Energy from both the Senate and the House.
Ex officio members will be the Chairmen of the
Committees on Agriculture and Trade and Industry.
Four additional members will be designated by the
Senate President and the House Speaker from their
respective chambers.
The minority party will have proportional
representation with a minimum of one member.
SECTION 17: SECTION 18:
Benefits of Biofuel Workers Special Clause
This law protects benefits of sugar workers This Act shall not be interpreted as
under R.A. No. 6982 (Sugar Amelioration Act) if prejudicial to clean development
sugarcane is used as biofuel feedstock. mechanism (CDM) projects that cause
The National Biofuels Board (NBB) will carbon dioxide (CO2) and greenhouse
establish a program similar to the Sugar gases (GHG) emission reductions by means
Amelioration Act for other biofuel workers. of biofuels use.
SECTION 19: Repealing Clause
Other laws, presidential decrees or issuances,
etc. and other parts thereof inconsistent with the
provisions of this Act, are hereby repealed,
modified or amended accordingly.

SECTION 20: Separability Clause

If any provision of this Act is declared
unconstitutional, the same shall not affect the
validity and effectivity of the other provision hereof.

SECTION 21: Effectivity

Shall take effect fifteen (15) days after its
publication in atleast two newspapers of general
circulation.
 MORE ABOUT RA8367
This Act which is a consolidation of Senate Bill No.2226 and
House Bill No. 4629 was finally passed by the Senate and the
House of Representatives on November 29,2006.

This was approved in January 12, 2007 and signed by

President Gloria Macapagal-Arroyo.