The Philippine’s Biofuels Bill has finally been approved in a joint bicameral (Senate and Congress) committee. The bill provides for the mandatory use of biofuel blends in gasoline and diesel fuels. At least five percent ethanol blend in gasoline is targeted within two years of effectivity of the bill, and then increased to ten percent four years after the passage of the law. A minimum of one percent of biodiesel blend is also mandated upon effectivity of the law’s implementing rules and regulations; this would be increased to two percent within two years.

Presently, gasoline with ethanol and diesel fuel blended with coconut-based biodiesel are sold in the Philppines, but only on a voluntary basis. The passage of the law is expected to fuel the construction of bioethanol and biodiesel plants in the country. Biofuel crops will be sugarcane, cassava, and corn as the feedstocks for bioethanol production, while coconut will be used to produce biodiesel. Among the benefits from the passage of the bill are: (1) an annual savings of about 35 billion pesos (roughly $700M) in fuel imports, (2) increased employment (3) increase in farmer income, and (4) improved air quality.