biofuels-act lantin ea1

8/18/2019 Biofuels-Act Lantin Ea1

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BIOFUELS ACT OF 20

Lantin, Jahziel P.

a p o r e


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Additional Info

Without any assurance of any local or export marketsChemrez broke ground in October 2003 for the constra continuous methyl ester plant using technology fromGermany’s Lurgi Lifesciences .

In February 2007, Chemrez started producing high qcoco-biodiesel under the brand name BioActiv® suppsignificant portion of the Phlippines’ requirements for biodiesel.


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ChemBioAc

!lant

More of this http://www.um/178-phirenewable-bi


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Section 2,-eclaration

$olic.


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Section 2It is hereby declared the policy of the Statereduce dependence on imported fuels wdue regard to the protection of public healtenvironment, and the natural ecosystems

consistent with the country's sustainableeconomic growth that would expandopportunities for livelihood by mandating tuse of biofuels as a measure to:


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Section 2

a) Develop and utilize indigenous renewable ansustainable-sources clean energy sources to reddependence on imported oil.

b) Mitigate toxic and greenhouse gas (GSG) emi

c) increase rural employment and income; and

d) Ensure the availability of alternative and renclean energy without any detriment to the natuecosystem, biodiversity and food reserves of the


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Section *,-e/nition of

Term


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SECTIO' *

a) AFTA - shall refer to the ASIAN free trade agrinitiated by the Association of South East Asian

b) Alternative Fuel Vehicle/Engine - shall refer tovehicle/engines that use alternative fuels such biodiesel, bioethanel, natural gas, electricity, hyand automotive LPG instead of gasoline and die

c)Bioethanol fuel - shall refer to ethanol (C2H30produce from feedback and other biomass.


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SECTIO' *

d)Biodiesel - shall refer to Fatty Acid Methyl Es(FAME) or mono-alkyl ester delivered from vegetor animal fats and other biomass-derived oils thbe technically proven and approved by the DOE in diesel engines, with quality specifications inaccordance with the Philippine National Standa(PNS)

e)Bioethanol fuels - shall refer to the hydrous aanhydrous bioethanol suitably denatured for usmotor fuel with ualit secifications in accorda


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SECTIO' *

f)Biofuel - shall refer to the bioethanol and biodother fuels made from biomass and primary usmotive, thermal power generation, with qualityspecifications in accordance with PNS;

g)Biomass - shall refer to any organic matter,particularly cellulosic or ligno-cellulosic matter,available on a renewable or recurring basis, inctrees, crops and associated residues, plant fiber

litter and other animal wastes, industrial wastes


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SECTIO' *

h)DA - shall refer to the Department of Agriculti)Diesel - shall refer to the refined petroleum diwhich may contain small amount of hydrocarbononhydrocarbon additives to improve ignition qu

other characteristic, suitable for compression igengine and other suitable types of engines with specifications in accordance with PNS;

j)DENR - shall refer to the Department of Envir

and Natural Resources


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SECTIO' *

q)Feedstock - shall refer to the organic sources

molasses, sugarcane, cassava, coconut, jatrophsorghum or other biomass used in the productibiofuels;

r)Gasoline – shall refer to volatile mixture of liquhydrocarbon, generally containing small amounadditives suitable for use as fuel in spark-ignitiointernal combustion engines with quality specifi

in accordance with the PNS;


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SECTIO' *

s)Motor fuel - shall refer to all volatile and inflamliquids and gas produced, blended or compoundthe purpose of, or which are suitable or practicaoperating motor vehicle;

t)MTBE - shall refer to Methyl Tertiary Butyl Etu)NBB or Board - shall refer to the National BioBoard created under Section 8 of this Act ;

v)Oil Company - shall refer to any entity that di

and sells petroleum fuel products;


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SECTIO' *

w)Oxygenate - shall refer to substances, which,

added to gasoline, increase the amount of oxygegasoline blend;

x)PNS – shall refer to the Philippine National Stconsistent with section 26 of R.A. No. 8749 othe

known as the 'Philippine Clean Air Act of 1999;y)Renewable Energy Sources - shall refer to enesources that do not have an upper limit on the tquantity to be used. Such resources are renewa

regular basis; and


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SECTIO' 1,

!hain O%t of the Uof 3armf%l 4aolineAdditive and5or

O.enate(


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Section 1 Within six months from affectivity of this Athe DOE, according to duly acceptedinternational standards, shall gradually phout the use of harmful gasoline additives s

as, but not limited to MTBE


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SECTIO' 7,8andator. Ue

of Biof%el


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Section 7(9 Withintwo yearsfrom the effectivity of this Aleast five percent (5%) bioethanolshall comthe annual total volume of gasoline fuel actuaand distributed by each and every oil compan

country; subject to requirement thatall bioet blended gasoline shall contain a minimum percent (5%) bioethanol fuel by volumeProthat ethanol blend conforms to PNS.


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Section 7(2 Withinfour yearsfrom the effectivity of this the NBB created under this Act is empoweredetermine the feasibility thereafter recommenDOE to mandatea minimum of ten percen

blend of bioethanol by volume into all gasofuel distributed and sold by each and every ocompany in the country.


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Section 7(2In the event of supply shortage of locally-pro bioethanol during the four–year period, oilcompanies shall be allowed to import bioethaonly to the extent of the shortage as may be

determined by NBB.


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Section 7(* Withinthree monthsfrom the effectivity of Act,a minimum of one percent (1%) biodi volumeshall be blended into all diesel enginsold in the country:Provided That the biodie

blend conforms to PNS for biodiesel.


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Section 7(* Withintwo yearsfrom the effectivity of this ANBB created under this Act is empowered todetermine the feasibility and thereafter recomto DOE to mandate aminimum of two perce(2%) blend of biodiesel by volume which maincreased taking into account considerationsincluding but not limited todomestic supplyavailability of locally-sourced biodieselcomponent.


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SECTIO' 6,Incentive

Scheme


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Section 6 Toencourage investmentsin the productiondistribution and use of locally-produced biofuand above the minimum mandated blends, an

without prejudice to enjoying applicable incen

and benefits under existing laws, rules andregulations, the following additional incentivehereby provided under this Act.


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Section 6a) Specific tax

The specific tax on local or imported biofuecomponent, per liter of volume shall be zer

The gasoline and diesel fuel component, sh

remain subject to the prevailing specific tarate.


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Section 6 b) Value Added Tax

The sale of raw material used in the produof biofuels such as, but not limited to, coco

jatropha, sugarcane, cassava, corn, and sw

sorghum shall be exempt from the value adtax.


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Section 6c) Water Effluents

All water effluents, such as but not limited to disslops from the production of biofuels used as liqufertilizer and for other agricultural purposes areconsidered "reuse", and are therefore,exempt fro

wastewater charges under the system provided usection 13 of R.A No. 9275, also known as the PhClean Water Act:Provided, however, That such apshall be in accordance with the guidelines issuedpursuant to R.A. No. 9275, subject to the monito

evaluationbyDENRandapprovedbyDA.


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Section 6d) Financial Assistance

Government financial institutions, such as the DevBank of the Philippines, Land Bank of the PhilippinQuedancor and other government institutions provfinancial services shall, in accordance with and to t by the enabling provisions of their respective charteapplicable laws, accord high priority to extend finan

Filipino citizens or entities,at least sixty percent the capital stock of which belongs to citizens of the that shall engage in activities involving production handling and transport of biofuel feedstock, includi blending of biofuels with petroleum, as certified by


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SECTIO' +,!o:er andF%nction of the

-OE


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Section +a) Formulate the implementing rules and regulationsSection 15 of this Act;

b) Prepare the Philippines Biofuel program consistenPhilippine Energy Plan and taking into considerationDOE's existing biofuels program;

c) Establish technical fuel quality standards for biofubiofuel-blended gasoline and diesel which comply wiPNS.

d) Establish guidelines for the transport, storage and

ofbiofuels;


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Section +e) Impose fines and penalties against persons orfound to have committed any of the prohibited aSection 12 (b) to (e) of this Act;

f) Stop the sale of biofuels and biofuel-blended gand diesel that are not in conformity with thespecifications provided for under Section 5 of thiPNS and corresponding issuances of the Departm

g) Conduct an information campaign to promoteof biofuels


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SECTIO' ;,Creation of the'ational Biof%el

Board


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Section ;It shall be composed of the Secretary of the DOchairman and the Secretaries of the DTI, DOSTDOF, DOLE, and the Administrators of the PCASRA, as members.

The DOE Secretary, in his capacity as Chairpershall, within one month from the effectivity of tconvene the NBB.


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Section ; The Board shall by assisted by a Technical Secrattached to the Office of the Secretary of the Dshall be headed by a Director to be appointed bBoard. The number of staff of the Technical Secand the corresponding positions shall be determthe Board, subject to approval by the DepartmeBudget and Management (DBM) and existing ciservices rules and regulations.


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Section ),!o:er andF%nction of the

'BB


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Section )a) Monitor the implementation of, and evaluate ffurther expansion, the National Biofuel Program prepares by the DOE pursuant to Section 7 (b) oAct;

b) Monitor the supply and utilization of biofuelsbiofuel-blends and recommend appropriate meacases of shortage of feedstock supply for approvSecretary of DOE. For this purpose:


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Section )b)1. The NBB is empowered to require all entities engaproduction, blending and distribution of biofuelsto reportsof their actual and projected sales and inven biofuels, in a format to be prescribed for this purpos

2. The NBB shall determine availability of locally-sou biofuels andrecommend to DOE the appropriate lpercentage of locally–sourced biofuelsto the total volume of gasoline and diesel sold and distributed incountry.


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Section )

c)Review and recommend to DOE the adjustmthe minimum mandated biofuel blends subjecavailability of locally–sourced biofuels:Provided,minimum blend may be decreased only within t

four years from the effectivity of this Act. Thereaminimum blends of the five percent (5%) and tw(2%) for bioethanol and biodiesel respectively, shdecreased;


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Section )

d) Recommend to DOE a program that will ensuavailability of alternative fuel technology for vehiengine and parts in consonance with the mandaminimum biofuel-blends, and to maximize the u

of biofuels including other biofuels;e) Recommend to DOE the use of biofuel–blendstransport taking into account safety and technicviability; and


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Section )

f) Recommend specific actions to be executed byand other appropriate government agencies conthe implementation of the NBP, including its ecotechnical, environment, and social impact.


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SECTIO' 90,Sec%rit. of-ometic S%ar

S%$$l.


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Section90 SRA, pursuant to its mandate, shall, at all timensures that the supply of sugar is sufficient todomestic demand and that the price of sugar is

SRA shall recommend and the proper agenciesundertake the importation of sugar whenever nand shall make appropriate adjustments to theminimum access volume parameters for sugar

Tariff and Custom Code.


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Section 99,#ole of 4overnmAencie


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Section99a) TheDOF shall monitor the production and importation ofthrough the Bureau of Internal Revenue (BIR) and the BureaCustoms (BOC);

b) TheDOST and theDA shall coordinate in identifying and viable feedstock for the production of biofuels;

c) TheDOST, through thePhilippine Council for Industry Research and Development (PCIERD), shall develop and imresearch and development program supporting a sustainableimprovement in biofuel production and utilization technologyalso publish and promote related technologies developed locaabroad.

Section99


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Section99d) TheDA through its relevant agencies shall:

(1) Within three months from effectivity of this Act, develop anaprogramfor the production of crops for use as feedstock supplypurpose, the Administrators of the SRA and the PCA, and otherattached agencies shall, within their authority develop and imppolicies supporting thePhilippine Biofuel Program and submto the Secretary of the DA for consideration;

(2) Ensure increased productivity and sustainable supply of biofeedstocks. It shall institutes program that would guarantee thaand reliable supply of feedstocks is allocated for biofuel product

(3) Publish information on available and suitable areas for cultivproduction of such crops.

Section99


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Section99e) TheDOLE shall:

(1) Promote gainful livelihood opportunities and productive employment through effective employservices and regulation;

(2) Ensure the access of workers to productive r

and social coverage; and(3) Recommend plans, policies and programs thenhance the social impact of the NBP.

Section99


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Section99f) The Tariff Commission, in coordination with

appropriate government agencies, shall create aclassify a tariff line for biofuels and biofuel-blenconsideration of WTO and AFTA agreements; an

g) Thelocal government units (LGU) shall assi

DOE in monitoring the distribution sale in use oand biofuel-blends


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SECTIO' 92,!rohi&ited Act

Section92


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Section92a) Diversion of biofuels, whether locally produce

imported, to purposes other than those envisionAct;

b) Sale of biofuel–blended gasoline or diesel thatcomply with the minimum biofuel–blend by volu

violation of the requirement under Section 5 of tc) Distribution, sale and use of automotive fuel charmful additives such as, but not limited to, MTsuch concentration exceeding the limits to be deby the NBB.

Section92


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Section92d) Noncompliance with the established guideline

PNS and DOE adopted for the implementation oand

e) False labeling of gasoline, diesel, biofuels and blended gasoline and diesel.


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SECTIO' 9*,!enal !roviion

Section9*


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Section9*In the case of association, partnerships or corp

the penalty shall be imposed on the partner, prchief operating officer, chief executive officer, diofficers, responsible for the violation.

The commission of an act enumerated in Sectioupon conviction thereof, shall suffer the penalt

year to five years imprisonment and a fine ranga minimum of One million pesos (P 1,000,000.Five million pesos (P 5,000,000.00).

Section9*


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Section9*DOE shall confiscate any amount of such prod

fail to comply with the requirements of Sectionsthis Act, and implementing issuance of the DODOE shall determine the appropriate process amanner of disposal and utilization of the confisproducts. The DOE is also empowered to stop a

suspend the operation of businesses for refusacomply with any order or instruction of the DOSecretary in the exercise of his functions under

Section9*


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Section9*Further, the DOE is empowered to impose

administrative fines and penalties for any violathe provisions of this Act, implementing rules aregulations and other issuance relative to this A


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SECTIO' 91,A$$ro$riation

Section91


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Section91Such sums as may be necessary for the initial

implementation of this Act shall be taken from current appropriations of the DOE. Thereafter,necessary to carry out provisions of this Act shincluded in the annual General Appropriation A


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SECTIO' 97,

Im$lementin #%and #e%lation


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Section97 The DOE, in consultation with the NBB, thestakeholders and the other agencies concerned

within three months from affectivity of this Actpromulgated the IRR of this Act:Provided, Thatits effectively, the draft of the IRR shall be postDOE web site for at least one month, and shall

published in at least two newspapers of generacirculation.


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SECTIO' 96,

ConreionalOveriht

Committee

Section96


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Section96 The biofuels oversight committee shall be comp(14) members, with the Chairmen of the CommEnergy of both House of Congress as co-chairmChairmen of the Committee on Agriculture andand Industry shall beex officiomembers. An adfour members from each House, to be designat

Senate President and Speaker of the House ofRepresentatives, respectively. The minority shaentitled to pro-rata representation but shall haleast one representative in the Biofuel OversighCommittee.


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SECTIO' 9+,Bene/t ofBiof%el >or?er

Section9+


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Section9+ This Act shall not in any way result in the forfediminution of existing benefits enjoyed by the s

workers as prescribed under theR.A. No. 6982Sugar Amelioration Act of 1991. In case sugashall be used as feedstock.

The NBB shall establish a mechanism similart

provided under the Sugar Amelioration Act of 1the benefit of other biofuel workers.

#(A( 'o( 6);2 or theS%ar Amelioration Act of 9)


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“It is the policy of the State to further strengthen the r workers in the sugar industry to their just share in th

production by augmenting their income and, among oschemes, institutionalizing the mechanism among thein the sugar industry to enable the workers and their enjoy a decent living.”

“…the State shall consider the demand for living wage

needs of the workers and their families, improvement istandards of living, the seasonal nature of the work in industry, incentives for productivity, the interest of theconsumers, the viability of the sugar industry, the fairthe capital invested, and the equitable distribution of i


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SECTIO'S 9;@2

Section9;, S$ecial Cla%


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$ This act shall not be interpreted as prejudicialdevelopment mechanism (CDM) projects that ccarbon dioxide (CO2) and greenhouse gasses (Gemission reductions by means of biofuel use.

Section9), #e$ealin Cla


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$ The provision of Section 148 (d) of R.A. No. 842otherwise known as Tax Reform Act. of 1997, aother laws, presidential decrees or issuance, exorders, presidential proclamations. rules andregulations or part thereof inconsistent with thprovisions of this Act, are hereby repealed, mod

amended accordingly.

Section 20, Se$ara&ilit. C


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$ .

If any provision of this Act is declared unconstiin the same shall not affect the validity and effthe other provision hereof.

This act shall effect fifteen (15) day after publiat least two newspapers of general circulation.

Section 29, Eectiv


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BioActiv1. BioActiv ® contains 11% oxygen and thus promotes complet


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yg p pcombustion. Diesel is therefore more efficiently combusted andcleaner with BioActiv ®.

2. BioActiv ®contains high percentage of methyl laureate ( not other plant-based biodiesel) the source of its superb solvency adetergency. Thus, it declogs injectors, cleanses fuel lines and cochamber, and restores fuel spray and atomization efficiency.

3. BioActiv ® has high lubricity feature. It ensures efficient funmoving parts and its inherent feature for “boundary” lubricatio

wear and tear that prolongs engine life.

4. BioActiv ® has cetane number of 70. Fossil diesel has 55 or other biodiesel have 60 or less. It promotes acceleration responemission.

5. BioActiv ® has viscosity of 2.6 cst versus viscosity of fossil d

BioActiv6. BioActiv ® has a T90 of less than 320oC . It further ensures c


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combustion and provides smoke free emissions, cutting air pollu(1) percent blend of BioActiv ® in diesel can result in eighty percin smoke emission levels.

7. Compared to other plant-based biodiesel which elevates NOx BioActiv in contrast reduces NOx emission in internal combusti

8. Compared to other biodiesels which have oxidation stability ohours, the oxidation stability of BioActiv ® at >12 hrs surpassesminimum of 10 hrs requirement of Japan Automotive Manufactu

Association (JAMA)

9. BioActiv ® has a wide range of carbon chain profile that is neas US Diesel No. 1. Other plant-based biodiesels have narrow rachain. Thus as diesel fuel, BioActiv ® is a perfect natural dieselthe ultra low sulfur quality specs of European Tier 4 Standard f

biofuels-act lantin ea1

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