DOE issues guidelines for bioethanol program

Anticipating the approval of the Biofuels Act in Congress, the Department of Energy issued the interim guidelines for oil companies to follow when applying and participating in the bioethanol program.

Department Circular No. 2006-08-0011 specifies that only oil companies of good standing that are actively engaged in the business of retailing gasoline may apply for accreditation under the current bioethanol program.

DOE explained that prior to the entry of ethanol production from local manufacturers in 2008, the bioethanol program activities are currently limited to importation of anhydrous bioethanol, denaturing for local sale of fuel bioethanol, blending fuel bioethanol to gasoline and retail sale of ethanol gasoline (E-gasoline).

To participate in the bioethanol program, DC 2006-08-0011 requires oil company applicants to file with the DOE-Oil Industry Management Bureau a request for accreditation and to submit relevant information that includes the timetable of product launching, location, tank ID number and capacity of dedicated storage tanks duly approved by the Bureau of Internal Revenue and/or the Bureau of Customs.

Oil company applicants must also submit proof of their technical and physical or logistical capability to handle bioethanol products, including provision for dedicated storage tanks and/or especially modified/retrofitted retail outlets where bioethanol-blended products shall be marketed.

A list of relevant information including addresses of its retail outlets marketing E-gasoline, and the corresponding work, maintenance program to be undertaken to ensure compatibility of the retail outlet equipment/facility to handle and dispense E-gasoline products must also be provided to the DOE-OIMB.

In a press statement, Energy Secretary Raphael Lotilla said the interim guidelines are vital to protect the interest of the stakeholders including the government and most especially the consumers.

"This also serves as a guide for the effective monitoring and implementation of the bioethanol program especially at this phase where bioethanol sources and related products are limited to importation," the secretary added.

San Carlos Bio-energy, a local producer of ethanol with a production capacity of 100,000 liters per day, is expected to come on stream by 2008. Other local ethanol producers including Southern Bukidnon Bioenergy, JG Summit Holdings Inc., Biofuels 88 and Tamlang Valley Ethanol are also expected to come on stream by 2008 and beyond.

Under DC 2006-08-0011 oil company participants are also required to sell only fuel bioethanol and E-gasoline conforming to the Philippine National Standards. The PNS for anhydrous bioethanol fuel was promulgated by the Bureau of Product Standards of the Department of Trade in Industry last April 18, 2006. - Wenna A. Berondo/BRP