I.

RA 9367 - The Biofuels Act of 2006

Republic Act 9367, commonly referred to as the "Biofuels Act of 2006," mandates the
incorporation of "indigenous renewable and sustainably sourced clean energy sources" as
additives in the transportation sector's fuel mix. The primary objectives include diminishing
reliance on imported oil, mitigating toxic and greenhouse gas emissions, fostering rural
employment and income growth, and ensuring the availability of renewable energy without
adverse effects on the natural ecosystem, biodiversity, and food reserves of the nation
(Republic Act 9367, 2006).
In adherence to this legislation, a minimum of five percent (5%) bioethanol by volume must
be blended with gasoline and diesel until 2009, the second year following its enactment.
Additionally, within three months of the act's effectivity (April 2007), all diesel engine fuels
sold in the country are required to contain a minimum of one percent (1%) biodiesel by
volume. These bioethanol and biodiesel blends must adhere to Philippine National Standards,
as stipulated in Section 26 of RA 8749, known as the Philippine Clean Air Act of 1999.
Importation is permitted only in instances of determined shortages by the National Biofuels
Board (NBB). After two years, the NBB is empowered to assess the viability of increasing
the bioethanol and biodiesel blends by 10% and 2% by volume, respectively. As of now, these
represent the minimum bioethanol and biodiesel blends in the country (Department of
Energy, 2021).
During the recent 39th Japan Cooperation Center Petroleum (JCCP) International
Symposium, the Department of Energy presented the Philippine DOE’s Biofuels Roadmap
2018-2040. This strategic plan aims to elevate the biodiesel requirement from the current 2%
to 5%, with a long-term target of reaching 20% by the year 2040 (Department of Energy,
2021).
To incentivize investments, Republic Act 9367 (2006) provides fiscal incentives, including
specific tax exemptions, value-added tax exemptions, relief from wastewater charges, and
financial assistance.

II. RA 9513 - The Renewable Energy Act of 2008

Republic Act 9513, commonly known as the "Renewable Energy Act of 2008," establishes a
framework for the development, utilization, and commercialization of renewable energy
sources. The act defines renewable energy resources, encompassing biomass, solar, wind,
geothermal, ocean energy, hydropower, and emerging renewable energy technologies, as
those that can be regularly replenished and are perpetually available (Republic Act 9513,
2008).

The overarching vision of this legislation is to achieve national energy self-sufficiency by

employing sustainable energy development strategies in exploring and harnessing renewable
energy resources. This strategic approach aims to reduce the country's dependence on fossil
fuels, thereby lessening its vulnerability to fluctuations in international market prices.
Additionally, it is a state policy to promote the development and utilization of renewable
energy sources as a means to mitigate harmful emissions (Republic Act 9513, 2008).
In furtherance of expediting the development of the country’s renewable energy resources
and encouraging private sector involvement, the state offers fiscal and non-fiscal incentives
as policy mechanisms to private sector investors and equipment manufacturers/suppliers
(Republic Act 9513, 2008).

Fiscal incentives, as delineated by the law, encompass a range of benefits, including but not
limited to income tax holidays, low-income tax rates, duty-free importation of renewable
energy machinery, equipment, and materials, tax rebates for the acquisition of renewable
energy components, and the Net Operating Loss Carry-Over (NOLCO) provision (Republic
Act 9513, 2008).