This research aims to assess economic and social impacts of 20% biofuels blending mandate by 2017, using forward-looking dynamic CGE model that can model transitional dynamics of the economy. Start from a simple version of the model, then later incorporate important issues gradually. The current simple version can address: Welfare impacts - Equivalent variation (EV) represents overall welfare impacts; Nationwide economic impacts - Changes in GDP as well as sectoral outputs; Food-fuel competition over land - land factor based on AEZ is modeled; and Social impacts - Changes in commodity prices and wage rates will imply impacts on the poor.