MANDATING A MINIMUM OF 2% BLEND OF BIODIESEL IN ALL DIESEL AND 5% BIOETHANOL IN ANNUAL TOTAL VOLUME OF GASOLINE

WHEREAS, Section 5.1 of Republic Act No. 9367 or the “Biofuels Act of
2006” mandates that, “Within two years from the effectivity of this
Act, at least five percent (5%) bioethanol shall comprise the annual
total volume of gasoline fuel actually sold and distributed by each and
every oil company in the country, subject to the requirement that all
bioethanol blended gasoline shall contain a minimum of five percent (5%)
bioethanol fuel by volume. Provided, that the ethanol blend conforms to
PNS”;

WHEREAS, Section 5.3, paragraph 2 of Republic Act No. 9367 states,
“Within two years from the effectivity of this Act, the NBB created
under this Act, is empowered to determine the feasibility and thereafter
recommend to DOE to mandate a minimum of two percent (2%) blend of
biodiesel by volume which may be increased taking into account
considerations including but not limited to domestic supply and
availability of locally-sourced biodiesel component”;

WHEREAS, on January 19, 2009, the National Biofuels Board (NBB)
established the viability of implementing the minimum blend of two
percent (2%) for biodiesel sold and distributed by every oil company;

WHEREAS, in a resolution dated January 19, 2009, the NBB recommended
to the DOE the implementation of the two percent (2%) blend (B2) for
diesel;

NOW, THEREFORE, in consideration of the foregoing, all entities that
distribute and sell petroleum fuel products are required to implement
the following minimum bio-fuel blends by February 6, 2009, with
specifications pursuant to the Philippine National Standards (PNS) for
B2, and conventional gasoline and E10 grades:

c. At least five percent (5%) bioethanol in the annual total volume
of gasoline fuel actually sold and distributed by each and every oil
company in the country;

d. At least two percent (2%) blend of biodiesel by volume. This Circular shall take effect immediately.

Adopted: 05 Feb. 2009

(SGD.) ANGELO T. REYES
Secretary