Philippines approve biofuels bill after agonising battle

The passage of the biofuels bill by the Philippine Senate yesterday was hailed by Rep. Juan Miguel Zubiri as an early Christmas gift for the Philipino people and for sugar-producing provinces like Negros Occidental (which have the potential to become biofuel exporters, earlier post). The Philippines has gone through a long and at times agonising battle in which petroleum and auto-makers' lobbies - who opposed the bill - squared off with farmers, environmentalists and academics (earlier post).

Senator Mar Roxas told journalists last night that the Senate voted unanimously to pass the biofuels bill that would require all liquid fuels for motors and engines sold in the Philippines to contain locally-sourced biofuels such as ethanol and biodiesel.

The bill contains the following measures:

• within two years after the bill's acceptance (end 2008), all gasoline in the country will contain 5% locally produced ethanol
• a minimum of one percent biodiesel by volume blended into all diesel fuels sold in the country subject to domestic supply and availability of locally sourced biodiesel
• a guarantee that the feedstocks used for ethanol and biodiesel production is sourced locally to protect local farmers
• a guarantee mechanism making sure that supply of sugar for food needs is protected

Zubiri, who authored the House version of the biofuels bill, told the DAILY STAR that a bicameral conference committee will be convened to reconcile the provisions of both the House and Senate versions and he expects a biofuels law to be in place by November. Solons from the sugar block, like Rep. Monico Puentevella and Rep. Jose Carlos Lacson will join the House team in the bicameral conference committee, he said.

Immediately after the signing of the biofuels bill into law by the president, Zubiri said he expects 12 ethanol plants to be built in various parts of the country:
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On top of bioethanol plant being built in San Carlos City in Negros Occidental, Zubiri said he expects five other such plants to rise on Negros Island and two are being planned for Cebu. This is great for the country's sugar producers, he said.

He said with sugar prices having dropped to 10 cents per pound in the world market or Pesos 570 to Pesos 600 per 50 kilobag, that would kill local sugar producers, and the biofuels bill will save them.

"The sugar producers will not only survive, they will flourish," he said.

"Within two years of the law's effectivity, at least five percent bioethanol shall comprise the total volume of gasoline fuel actually sold and distributed in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum of five percent bioethanol fuel by volume," according to Senate Bill 2226, which Malacañang certified as urgent in March this year.

The measure also provides that immediately upon effectivity, "a minimum of one percent biodiesel by volume shall be blended into all diesel engine fuels sold in the country subject to domestic supply and availability of locally sourced biodiesel component."

Violators will be penalized with one to five years imprisonment and a fine ranging from P1 million to P5 million, according to the bill.

The bill is designed to reduce the country's dependence on imported fuel, the price of which have been volatile in the world market, and also seeks to protect health and environment.