DoE, industry welcome okay of Biofuels Bill
Thursday, October 19, 2006
By JAMES A. LOYOLA
The Department of Energy (DoE) and industry players welcomed yesterday the Senate’s approval of the Biofuels Bill, a landmark legislation that is expected to liberate the country’s transport sector from full dependence on imported fuel.
Energy Secretary Raphael Lotilla said the law will provide the needed environment for the development of the local biofuels industry.
"We will attract more investors and we will be able to develop this new industry more rapidly as we shift to more indigenous fuels in response to the uncertainty of the world’¯s energy supply. This bill will build new industries, new domestic markets, new investments, new local expertise," he said.
Leon Lao, Chemrez Technologies president said: We join the biofuels industry in our warm welcome of the Senate’s approval of the biofuels bill. Our congratulations go to the senators for their sound judgment and political will in passing this milestone legislation.
It is only a matter of time before it passes through the bicameral conference committee and is signed into law by the President of the Philippines." He said savings in foreign exchange on diesel alone will be massive.
He said Chemrez biodiesel plant is fully functional with a current capacity of 60 million liters per year, more than enough to cover local B1 needs. It could reach up to 75 million liters per year given sufficient demand.
The House of Representatives earlier approved its version of the Biofuels Bill in November 2005. Both Houses of Congress are expected to convene the bicameral conference committee to reconcile each House version once Congress resumes session on November 5.
Specifically, the Biofuels Bill mandates a minimum 1 percent biodiesel blend into all diesel engine fuels upon the approval of the implementing rules and a minimum 5 percent bioethanol blend into all gasoline fuel distributed and sold in the country within two years upon effectivity of the Act.
The mandated blend will increase to 2 percent for biodiesel two years from the effectivity of the Act, and to 10 percent for bioethanol four years after the effectivity of the Act.
The bill also provides incentives for the producers and manufacturers of local biofuels for blending into petroleum fuels.
For instance, biofuels producers are already assured of a mandated market for their product, specific tax exemption and financial assistance from government financial institutions.
posted by philpower @ 7:39 AM,
