THE Department of Energy (DOE) has revised its guidelines on the use of locally produced bioethanol in the production of E-gasoline to ensure continuous and stable supply of bioethanol in the market.
The DOE issued Department Circular 2015-06-0007which introduces some amendments to the current guidelines on the utilization of local bioethanol in the production of E-gasoline, or unleaded gasoline blended with bioethanol.
During its implementation, oil companies noticed that the regulations for planning, ordering, purchasing and scheduling deliveries for local and imported bioethanol were too tight, especially when unprogrammed delays or cancellations of deliveries occur.
These incidents adversely affected the stability, continuity and ability of the oil companies to make E-gasoline available in the market.
To solve the problem and address future supply constraints, stakeholders participating in the Bioethanol program reviewed and recommended amendments to Department Circular 2011-12-0013.
Department Circular 2011-12-0013 was issued primarily to ensure that all locally produced bioethanol by the accredited bioethanol producers are purchased and utilized by the oil companies before they are allowed to import such product.
Through this circular, the mechanisms for a Local Monthly Allocation (LMA) and Notice of Allowable Bioethanol Importation (NABI) were institutionalized. These mechanisms would monitor actual bioethanol requirement and utilization of both local and imported bioethanol on a monthly basis.
The DOE said the amendments to the circular were discussed and agreed upon by the National Biofuel Board.
Among the amendments was the elimination of the notice of allowable bioethanol importation (NABI) and requirement of minimum inventory of the component to produce E10, the consideration for major equipment breakdown.
Under the amended guidelines, all monthly volumes reported for the quarter by the local bioethanol producers are committed volumes; and reported committed volumes shall now be production and inventory.
Both bioethanol producers and oil companies have to submit a Certificate of Sale of Bioethanol, which shall be the basis of the former’s sale and the latter’s compliance with its local monthly allocation (LMA).
Oil firms have to submit also their summary of Planned and Actual Lifting.
The Biofuels Act of 2006 mandates a minimum blend of biodiesel sourced from coconut or coconut methyl ester in all diesel products, and the gradual increase of the alternative fuel mix over time.