WHEREAS, Republic Act No. 7638, "An Act Creating the Department of Energy (DOE)", tasks the DOE to formulate rules and regulations as may be necessary to guide government and private entities involved in energy resource supply and distribution;

WHEREAS, bioethanol is an energy resource that is environment-friendly, renewable and can be produced locally such that if blended with petroleum products, would support the Government's five point energy independence program as well as the DOE's thrust towards the development of indigenous and renewable energy resources, thus increasing the use of alternative fuels for the transport sector;