Philippines: Government bill will make Biofuel use mandatory
Friday, November 24, 2006, AutomotiveWorld.com
The bicameral conference committee has approved an improved version of the proposed Biofuels Act of 2006, reports local newspaper Manila Times. Once signed by the President, it will become the pioneer alternative fuel law in the country.
Representative Juan Miguel Zubiri of Bukidnon, Northern Mindanao, the bill's main author, said the proposal will make the use of biofuels mandatory.
Under the Act, all liquid automotive fuels sold in the country will be required to blend locally produced biofuels. The Act also mandates that within two years of being implemented, the annual combined volume of gasoline distributed in the country must have at least a 5% ethanol blend, increasing to 10% within four years.
The Act also stipulates that on being implemented at least 1% biofuel should be blended in diesel, which will be increased to 2% within two years.
The sale of biofuels will attract no value added tax for the raw materials used, such as coconut, sugar cane, cassava and corn. Zubiri feels that this Act will inspire investors to build ethanol plants, which would in turn, provide much needed employment.
Another similar bill, the Renewable Energy Bill, is currently pending in the Senate.
Published on Friday, November 24, 2006
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