Memorandum
Circular No. 55
DIRECTING
ALL DEPARTMENTS BUREAUS, OFFICES AND INSTRUMENTALITIES OF THE GOVERNMENT,
INCLUDING GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS TO INCORPORATE THE USE
OF ONE PERCENT (1%) BY VOLUME COCONUT METHYL ESTER IN THEIR DIESEL REQUIREMENTS
WHEREAS,
under Section 2(a) of
R.A. No. 7638, known as the “Department
of Energy Act of 1992”, it is declared the policy of the State to ensure a
continuous, adequate and economic supply of energy with the end in view of
ultimately achieving self-reliance in the country’s energy requirements through
the integrated and intensive exploration, production, management and
development of the country’s indigenous energy resources, without sacrificing
ecological concerns;
WHEREAS,
under Sections 2 and
4(a) of
R.A. No. 8749, known as “The
Philippine Clean Air Act (PCAA) of 1999”, it is declared the policy of the
State to protect and advance the right of the people to a balanced and
healthful ecology in accord with the rhythm and harmony of nature and recognize
the citizens’ right to breathe clean air;
WHEREAS,
the government is a
major user of motor vehicles operating on diesel fuel;
WHEREAS,
the Coconut Methyl
Ester (CME) blended with petroleum diesel fuel can reduce harmful emissions
such as carbon particulates and greenhouse gases thereby improving air quality
and at the same time improving the performance of the engines;
WHEREAS,
the World-wide Fuel
Charter states that based on the technical effects of fatty acid methyl esters
(FAME), which include CME, “... it is strongly advised the FAME content be restricted to less than or at five percent
(5%)”.
WHEREAS,
the use of CME in the
petroleum industry will create a new and significant application for coconut
oil and reinvigorate the Philippine coconut industry through the creation of a
new domestic market and increased productivity, thereby improving the lives of
coconut farmers.
NOW, THEREFORE,
I, GLORIA MACAPAGAL-ARROYO, President
of the Republic of the
SECTION
1. All departments, bureaus, offices and instrumentalities
of the Government, including government-owned and controlled corporations, are
hereby directed to use one percent (1%) CME by volume as a blend in petroleum
diesel fuel.
SEC. 2. The
Department
of Energy (DOE) shall be the lead implementing agency for the CME-Diesel
Program. The
DOE shall coordinate with various government
agencies and private entities involved in CME activities and shall prepare a
strategic plan outlining national goals in the development and expanded
utilization of CME and provide policy direction for the effective
implementation and monitoring of the program.
SEC. 3. The
Philippine
Coconut Authority (PCA) is hereby directed to include in its national program
for the coconut industry the development of the supply chain for CME, and in
consultation/coordination with the other government agencies and the private
sector, shall formulate a program to encourage investment and technology for
the production of CME to meet the needs of the domestic market.
SEC. 4. The
DOE,
in coordination, with the concerned government agencies shall formulate and
issue the necessary implementing rules and regulations within thirty (30) days after
the effectivity of this Circular.
SEC. 5. All departments, bureaus, offices and
instrumentalities of the Government, including government-owned and controlled
corporations, are hereby directed to provide the necessary resources which will
be utilized to implement the CME program subject to existing auditing and
accounting rules and regulations.
SEC. 6. All orders, issuances, rules and regulations
or parts thereof, which are inconsistent with this Circular are hereby repealed
or modified accordingly.
SEC. 7. If for any reason or reasons, any part of
this circular is declared unconstitutional or invalid, the validity of the
other provisions shall not be affected by such declaration.
SEC. 8.
This Memorandum Circular shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.
Done in the
City of
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