"A bioethanol program will not only help cushion the effects of rising fuel prices but more importantly it will improve our environment as it is considered a very clean fuel," Energy Secretary Vincent Perez said.
He said the proposed measure will help create employment opportunities in the countryside. Bioethanol as an alternative transport fuel is produced from biomass which, in turn, is produced from any organic matter such as trees, agricultural crops, plant fiber, poultry litter and other animal wastes and industrial wastes, among others.
Perez said the bill supports the Energy Department’s five-point energy independence program, which includes the increased use of alternative transport fuels.
The energy independence program launched by President Arroyo last year aims to bring the country’s energy self-sufficiency level to 60 percent by 2010.
The bill mandates the use of bioethanol as a blend to gasoline. The proposed National Bioethanol Fuel Program seeks a minimum of five-percent bioethanol blend into all gasoline to distributed, sold and used as motor fuel.
The minimum blend will be increased to 10 percent by the end of the fourth year of the program’s effectivity.
The measure also proposes to create a National Bioethanol Board to be chaired by the Energy Secretary with members from the Departments of Trade and Industry, Finance, Transport and Communications, Science and Technology, Agriculture, Environment and Natural Resources and the Sugar Regulatory Administration to formulate, implement and monitor the program.
Representatives from the feedstock producers, distillery and petroleum industries, automotive manufacturers will also form part of the board.
The bill also seeks to provide incentives to encourage investments in the production and distribution of bioethanol. These include exemption from import tariffs and duties in the importation of inputs, equipment and machineries and incentives under the Investments Priorities Plan of the Board of Investments.