Adopted: 29 June 2015
Date Filed: 21 July 2015
WHEREAS, Republic Act No. 7638, œAn Act Creating the Department of Energy (DOE) , tasks the DOE to formulate rules and regulations as may be necessary to guide government and private entities involved in energy resource supply and distribution;

WHEREAS, bioethanol is an energy resource that is environment-friendly, renewable and can be produced locally such that if blended with petroleum products, would support the Government ™s five point energy independence program as well as the DOE ™s thrust towards the development of indigenous and renewable energy resources, thus increasing the use of alternative fuels for the transport sector;

WHEREAS, in 2005, the DOE has adopted the Fuel Bioethanol Program to promote the use of bioethanol and has issued Department Circular No. 2006-06-011 entitled œInterim Guidelines for Accreditation of Oil Industry Participants in the Fuel Bioethanol Program,  providing for accreditation guidelines for Oil Industry Participants for the effective monitoring and implementation of the Fuel Bioethanol Program, ensuring also therein quality conformance of both imported and locally manufactured bioethanol to the Philippine National Standard (PNS).

WHEREAS, Republic Act No. 8749, otherwise known as the œPhilippine Clean Air Act of 1999 , mandates the use of environmentally clean fuels which meet specified emission standards and directs the DOE, together with the Department of Environment and Natural Resources (DENR), Bureau of Philippine Standards (BPS), and the Department of Science and Technology (DOST) and other stakeholders, to set specifications for all types of fuel and fuel-related products and improve fuel composition;

WHEREAS, in compliance with the above mandate, PNS/DOE QS 008:2012 for E-gasoline was promulgated and is now being implemented through the issuance of Department Circular No. DC 2013-09-0021 while PNS/DOE QS 007:2014 for Anhydrous Bioethanol and Bioethanol Fuel Specification which is used as blending component of E-gasoline, was promulgated by the BPS on May 6, 2014.

NOW, THEREFORE, in consideration of all the foregoing, the DOE hereby issues, adopts and promulgates the following:

Section 1. Standard Implementation. Upon the effectivity of this Department Circular local bioethanol producers shall comply with PNS/DOE QS 007:2014 for their bioethanol and bioethanol fuel production while accredited Oil Industry Participants in the Fuel Bioethanol Program shall purchase bioethanol conforming to the said PNS.

Section 2. Quality Reporting Requirement. All accredited Oil Industry Participants engaged in the importation of bioethanol and/or denaturing of the same shall submit to the DOE, a Certificate of Quality of the imported or locally purchased bioethanol within twenty (20) days after unloading from the source, showing conformance to all the properties listed in PNS/DOE Q 007:2014. This submission shall form part of the reportorial requirements of the oil companies and failure or refusal to submit the same shall be deemed a prohibited act.

Further, all Oil Industry Participants shall ensure that their imported and/or locally-purchased bioethanol contains the desired and appropriate corrosion inhibitor additive for bioethanol.

Section 3. Information Campaign. Oil industry Participants shall ensure that their gasoline retail outlets personnel are fully aware and conversant about the products that they sell/dispense at the retail stations. Moreover, Oil Industry Participants are enjoined to provide necessary information through, among others, the conduct of Information Education Campaigns to their customers, especially on their new product brand.

Section 4. Penalties/Sanctions. Any person who fails to comply with the provisions of this Department Circular shall be subject to appropriate sanctions imposed under applicable laws and implementing rules and regulations.

Section 5. Repealing Clause. All circulars and other issuances not consistent with this Circular are hereby deemed modified or repealed accordingly.

Section 6. Effectivity and Publication. This Circular shall be effective upon its publication in two (2) newspapers of general circulation and shall remain in effect until revoked.

Fort Bonifacio, Taguig, Metro Manila, 06-29-15.

(SGD) CARLOS JERICHO L. PETILLA
Secretary