RMC No. 105-2024 — Implementation of increased biodiesel blend requirements, and updating of the requirements for permit to operate for Downstream Oil Industry participants

REPUBLIC OF THE PHILIPPINES @ Rubeads OFanternen Pevendn MANAGEMENT DIVISION

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE SEP 12 2024

Bringing in Reven for Nation-building Quezon City BY: 7ANLA: Admin unit TTIME: 11:4SAL

August 29, 2024

REVENUE MEMORANDUM CIRCULAR j 105-2024

SUBJECT Implementation of Increased Biodiesel Blend Requirements, and updating

of the requirements for permit to operate for Downstream Oil Industry participants.

TO All Internal Revenue Officials and Others. Concerned

sustainability and the ease of doing business. transition and adherence to the new mandates in line with the government's commitment to environmental SECTION 1. OBJECTIVES - This Revenue Memorandum Circular (RMC) is issued to inform and compel all concerned parties to comply with the new biodiesel blend requirenents as stipulated in the Department of Energy (DOE) Department Circular 05-2024. This directive aims to ensure a smooth

SECTION 2 SCOPE - Pursuant to the DOE Department Circular No. DC 2024-05-0014, all

sources and reduce dependence on fossil fuels. participants in the Downstream Oil Industry (DOI) are required to increase the biodiesel blend in their diesel products. This mandate is part of the government's initiative to promote the use of renewable energy

SECTION 3. DEFINITION OF TERMS. - For the purposes of this issuance, the following terms shal be defined as follows:

A. Alternative Fuel Vehicles Engines: shall refer to vehicles/engines that use alternative fuels such

as biodiesel, bioethanol, natural gas, electricity, hydrogen and automotive LPG, instead of gasoline and diesel: B. Biodiesel: shall refer to Fatty Acid Methyl Ester (FAME) or mono-alkyl esters derived from

vegetable oils or animal fats. and other biomass-derived oils that shall be technically proven and approved by the DOE for use in diesel engines, with quality specifications in accordance with the Philippine National Standards (PNS):

D. Bioethanol Fuel: shall refer to hydrous or anhydrous bioethanol suitably denatured for use as C.Bioethanol: shall refer to ethanol (CHsOH) produced from feedstock and other biomass;

motor fuel, with quality specifications in accordance with the PNS: E. Biofuel: shall refer to bioethanol and biodiesel and other fuels made from biomass and primarily

F. Biomass: shall refer to any organic matter, particularly cellulosic or ligno-cellulosic matter, which is available on a renewable or recurring basis, including trees, crops and associated residues, plant of solid waste; fiber, poultry litter and other animal wastes, industrial wastes, and the biodegradable component used for motive, thermal and power generation, with quality specifications in accordance with the PNS:

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G. Diesel: shall refer to refined petroleum distillate, which may contain small amounts of hydrocarbon

or non-hydrocarbon additives to improve ignition quality or other characteristics, suitable for compression ignition engine and other suitabie types of engines with quality specifications in

H. DOI (Downstream Oil Industry): The segment of the oil industry involved in the refining. accordance with the PNS; distribution, and marketing of petroleum products.

SECTION 4. POLICY and GUIDELINES

A. NEW BIODIESEL BLEND REQUIREMENTS - Effective October 1,2024, the

biodiesel blend requirements and their respective date of effectivity for diesel fuel shall be as follows:

October 1, 2024: Increase from the existing two percent (2%) biodiesel blend to

three percent (3%). October 1, 2025: Further increase to a four percent (4%) biodiesel blend. October 1, 2026: Further increase to a five percent (5%) biodiesel blend

Voluntary Compliance The DOI participants may offer consumers gasoline fuel containing twenty percent (20%) bioethanol blend on a voluntary basis.

B. REQUIREMENTS FOR PERMIT TO OPERATE

a. All affected permits to operate within the DOI must reflect the changes prescribed

by this order. Specifically: GE) BUREAU OF INTERNAL REVENUE RECORDS MANAGEMENT DIVISION Permit holders must ensure that their operations comply with the increased biodiesel blend requirements.

SEP 1 2 222 All relevant documentation, inctuding but not limited to applications. renewals, and compliance reports, must clearly indicate adherence to the

AdMIn uNtt "TiME: _I1457 t new biodiesel blend percentages. be valid untii December 31, 2025 and must also comply with these Existing permits must be updated to reflect these changes no later thar December 3 1, 2024. All new permits issued on the date of this order will

updated requirements.

C. VALIDITY OF PERMIT TO OPERATE

b. All applications and renewals done as of the date of this circular shall be valid a. All existing and valid permits as of the date of this circular shall remain valid only until December 31, 2024. until December 31, 2025.

SECTION 5. COMPLIANCE AND ENFORCEMENT - All DOI participants, fuel distributors, and fue!

compliance with this mandate will result in penalties and sanctions as provided by existing laws and retailers are hereby directed to comply with the aforementioned biodiesel blend requirements. Non-

regulations.

SECTION 6. SEPARABILITY CLAUSE. - If any provisions of this Circular shall be held unconstitutional or invalid, the other provisions not otherwise affected shall remain in full force and effect.

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amended accordingly. SECTION 7. REPEALING CLAUSE. - The provisions of any existing regulations, rulings or orders, or portions thereof inconsistent with the provisions of these Regulations are hereby revoked, repealed or

SECTION 8. EFFECTIVITY. - All concerned are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible.

This Circular shall take effect immediately.

1.

C Phissioner of Internal Revenue

D BUREAU OF INTERNALREVENUE ECORDS MANAGEMENT DIVISION

SFP 12 224

BY: ADMIN UNITC TME LRPAW

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