The E.O. was issued by President Arroyo in compliance with Republic Act (RA) No. 8749 declaring as a policy of the State to promote and protect the environment against pollution from mobile sources.
In issuing the E.O., President Arroyo said that the Malampaya Gas-to-Power Project represents the beginning of the natural gas industry in the Philippines with three gas-fired power plants with a total installed capacity of 2,760 MW as initial customers.
The President also said that apart from its application in the power sector, natural gas may be used as fuel for vehicles in the transport sector and as a source of energy in the industrial and commercial sectors.
The Chief Executive also said that the launching of the Natural Gas Vehicle Program for public transport saw the unveiling of a portfolio of incentives to encourage active participation of the private sector to provide the necessary support, logistics and infrastructure.
The program is also envisioned to enhance energy supply security in the transport sector through the diversification using indigenous natural gas, which is a clean burning alternative fuel and can provide a solution to the pressing environmental problems in urban areas.
The public transport, which includes public utility buses, jeepneys, taxis and other public utility vehicles, are encouraged to use natural gas as fuel with the adoption of an existing technology for refueling systems applicable to international standard.
The Department of Energy (DOE) will be the lead agency in implementing the program, including pilot projects to spur accelerated development, to encourage the use of CNG-powered PUVs and establishment of the necessary refueling infrastructure.
Conversion parts, kits and components shall be developed by the Department of Science and Technology in preparation to a shift from gas fuel to natural gas for PUVs.