REPUBLIC ACT NO. 10745 - AN ACT ALLOWING NATURAL GAS POWER GENERATING PLANTS IN THE COUNTRY TO USE NEAT DIESEL AS AN ALTERNATIVE FUEL, EXEMPTING THEM FROM THE REQUIREMENTS OF PARAGRAPH 5.3, SECTION 5 OF REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS THE “BIOFUELS ACT OF 2006”

[ REPUBLIC ACT NO. 10745, February 26, 2016 ]

AN ACT ALLOWING NATURAL GAS POWER GENERATING PLANTS IN THE COUNTRY TO USE NEAT DIESEL AS AN ALTERNATIVE FUEL, EXEMPTING THEM FROM THE REQUIREMENTS OF PARAGRAPH 5.3, SECTION 5 OF REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS THE “BIOFUELS ACT OF 2006”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 5 of Republic Act No. 9367, otherwise known as the “Biofuels Act of 2006”, is hereby amended to read as follows:

“SEC. 1. x x x.”

“SEC. 2. x x x.”

“SEC. 3. x x x.”

“SEC. 4. x x x.”

“SEC. 5. Mandatory Use of Biofuels. – Pursuant to the above policy, it is hereby declared that all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components as follows:

“ x x x

“5.3 Within three months from the effectivity of this Act, a minimum of one percent (1%) biodiesel by volume shall be blended into all diesel engine fuels sold in the country: Provided, That the biodiesel blend conforms to PNS for biodiesel.

“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 the 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: Provided, That natural gas power generating plants may use neat diesel as their alternative fuel during shortages of natural gas supplies: Provided, however, That the DOE shall ensure that the authority granted herein shall only be availed of, directly or indirectly, by natural gas power plants.”

SEC. 2. Implementing Rules and Regulations. – The DOE shall, within thirty (30) days from the effectivity of this Act, promulgate the implementing rules and regulations of this Act.

SEC. 3. Separability Clause. – Should any provision of this Act be declared invalid, the remaining provisions shall continue to be valid and subsisting.

SEC. 4. Repealing Clause. – All laws, executive order’s, or administrative orders, rules and regulations or parts thereof, which are inconsistent with this Act, are hereby amended, repealed or modified accordingly.

SEC. 5. Effectivity. – This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation in the Philippines.

Approved,

(Sgd.) FELICIANO BELMONTE JR. Speaker of the House of Representatives (Sgd.) FRANKLIN M. DRILON President of the Senate

This Act which is a consolidation of Senate Bill No. 2622 and House Bill No. 5587 was finally passed by the Senate and the House of Representatives on December 8, 2015 and December 14, 2015.

(Sgd.) MARILYN B. BARUA-YAP Secretary General House of Representatives (Sgd.) OSCAR G. YABES Secretary of the Senate

Approved:

BENIGNO S. AQUINO III President of the Philippines

Lapsed into law on FEB 26 2016 Without the signature of the President, In accordance with Article VI, Section 27 (1) of the Constitution.