Attention Activity Bioethanol is easy to use and requires no vent because it burns clean, without soot, smoke

or unpleasant smells. Why am I telling you my cooking experience during typhoon Glendas visit? Because the
topic assigned to me has something to do with the fuel I used.
(Slide 1) My topic is about RA 9367 Philippine Biofuels Act. Before I go through the details of this act and for
you to better appreciate it, allow me to walk you through some details on biofuels.
(Slide 2) What is biofuel? Read the slide. Put simply, biofuel is energy made from living matter, usually plants.
Bioethanol, biodiesel, and biogas are types of biofuels. Biofuels are considered renewable energies, emit less than fossil
fuels, and have received increasing attention in the transition to low-carbon economy.

(Slide 3) Biofuels can come from a wide variety of sources

(Slide 4) How is biofuel made?
(Slide 5) Biofuels have been around as long as cars have. Rudolph Diesel, on August 10, 1893, first
demonstrated the use of peanut oil to run his compression ignition engine. At the start of the 20th century,
Henry Ford planned to fuel his Model Ts with ethanol. But discoveries of huge petroleum deposits kept
gasoline and diesel cheap for decades, so biofuels were largely forgotten.
However, with the recent rise in oil prices, along with growing concern about global warming caused by
carbon dioxide emissions, biofuels have been regaining popularity and thus the enactment of RA 9367.
(Slide 6) Republic Act 9367 signed into law a mandatory biofuels standard which requires a 5% ethanol blend
for gasoline within two years, increasing to 10% within four years under the approval of a new National
Biofuels Board. A 1% biodiesel blend for diesel is required within 3 months, to be increased to 2% within two
years. Now, what is the purpose of this blending?
(Slide 7) State Policy
(Slide 8) Incentives. To encourage investments in the production, distribution and use of locally-produced
biofuels at and above the minimum mandated blends, the following incentives are provided under this Act.
a) Specific tax. The specific tax on local or imported biofuels component, per liter of volume shall be zero (0).
The gasoline and diesel fuel component, shall remain subject to the prevailing specific tax rate.
b) Value Added Tax. The sale of raw material used in the production of biofuels shall be exempt from the value
added tax.
c) Water Effluents. All water effluents are considered reuse therefore they are exempt from wastewater
charges under the system provided under section 13 of R.A No. 9275, also known as the Philippine Clean
Water Act.
d) Financial Assistance. Government financial institutions, such as the Development Bank of the Philippines,
Land Bank of the Philippines, Quedancor and other government institutions providing financial services shall
accord high priority to extend financing to Filipino citizens or entities, at least sixty percent (60%) of the capital
stock of which belongs to citizens of the Philippines that shall engage in activities involving production storage,

handling and transport of biofuel feedstock, including the blending of biofuels with petroleum, as certified by
the DOE.
(Slide 9) The following acts shall be prohibited: read the slide
(Slide 10) Penalties. Any persons who commits the prohibited acts stated here shall penalized. read the slide.