Arroyo signs biofuels bill into law

Philippine President Gloria Macapagal-Arroyo signed the Biofuels Act of 2006 or Republic Act 9367 in January, after Congress ratified the landmark bill in November, mandating the use of ethanol and biodiesel fuel. The biofuels law mandates the use of gasoline with a blend of 5% bioethanol within two years. The mix could be increased to 10% within four years. For diesel-powered vehicles, a 1% biodiesel blend will be mandatory by May 2007. The biodiesel blend could be increased to 2% within two years. RA 9367 also provides an incentive of a zero-rated specific tax on the biofuels component of blended gasoline or diesel fuel. The law also imposes penalties of imprisonment from one to five years, with a fine of Php1 million to 5 million (US$20,418-102,092), for those who sell sub-standard or under-blended biofuels or mislabel biofuel products. (January 12, 2007)