Directing Government Offices and GOCCs to Use 10% by Volume Bioethanol in Their Gasoline Requirements

October 26, 2009

MEMORANDUM CIRCULAR NO. 184

DIRECTING ALL DEPARTMENTS, BUREAUS, OFFICES AND INSTRUMENTALITIES OF THE GOVERNMENT, INCLUDING GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS TO USE TEN PERCENT (10%) BY VOLUME BIOETHANOL IN THEIR GASOLINE REQUIREMENTS

WHEREAS, under Section 2 (a) of R.A. No. 7638, known as the "Department of Energy Act of 1992", it is declared the policy of the State to ensure a continuous, adequate and economic supply of energy with the end in view of ultimately achieving self-reliance in the country's energy requirements through the integrated and intensive exploration, production, management and development of the country's indigenous energy resources without sacrificing ecological concerns; DEICaA

WHEREAS, under Sections 2 and 4 (a) of R.A. No. 8749, known as "The Philippine Clean Air Act (PCAA) of 1999", it is declared the policy of the State to protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature and recognize the citizen's right to breathe clean air;

WHEREAS, Republic Act No. 9367 or the "Biofuels Act of 2006" was passed in 2006 as a measure to "ensure the availability of alternative and renewable clean energy, without any detriment to the natural ecosystem, biodiversity and food reserves of the country", thereby mandating a "minimum ten percent (10%) blend of bioethanol by volume (Sec. 5.2)";

WHEREAS, the Government is a major user of motor vehicles operating on gasoline fuel;

WHEREAS, the bioethanol blended with petroleum gasoline fuel can reduce harmful emissions and carbon monoxide thereby improving air quality;

WHEREAS, the World-wide Fuel Charter permits the blend of bioethanol up to ten percent (10%) by volume;

WHEREAS, the use of bioethanol in the petroleum industry will reinvigorate the Philippine sugar industry through the creation of a new domestic market and increased productivity, thereby improving the lives of sugarcane farmers;

WHEREAS, ten percent (10%) bioethanol blended gasoline fuel is available in the gasoline retail stations nationwide.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. All departments, bureaus, offices and instrumentalities of the Government, including government-owned and controlled corporations, are hereby directed to strictly purchase E10 blended gasoline fuel from oil companies/gas stations as fuel for their motor vehicles operating on gasoline fuel.

SECTION 2. The DOE, in coordination with the concerned government agencies, shall formulate and issue the necessary implementing rules and regulations within thirty (30) days after the effectivity of this Circular. aDIHCT

SECTION 3. All departments, bureaus, offices and instrumentalities of the Government, including government-owned and controlled corporations are hereby directed to provide the necessary resources to be utilized to implement the utilization of E10 blended gasoline fuel, subject to existing auditing and accounting rules and regulations.

SECTION 4. The DOE shall conduct information, education and communication (IEC) activities to induce public awareness, identify the concerns of stakeholders on the use of E10 blended gasoline fuel and take the necessary steps in order to address them.

SECTION 5. All departments, bureaus, offices and instrumentalities of the Government, including GOCCs, shall issue internal directive in their respective offices implementing this Circular not later than one (1) month after the effectivity thereof, copy of which shall be furnished to the Office of the President and the Department of Energy.

SECTION 6. All orders, issuances, rules and regulations or parts thereof, which are inconsistent with this Circular are hereby repealed or modified accordingly.

SECTION 7. If for any reason or reasons, any part of this Circular is declared unconstitutional or invalid, the validity of the other provisions shall not be affected by such declaration.

SECTION 8. This Memorandum Circular shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.

DONE in the City of Manila, this 26th day of October, in the year of Our Lord, Two Thousand and Nine. AHcaDC