Philippine Fuel Ethanol Alliance
Strategies and Updates
Philippine Fuel Ethanol Alliance – Organization
• A loose organization composed of future ethanol producers:
• Philippine Sugar Millers Association • Sugar Master Plan Foundation • Center for Alcohol Research and Development • Petron Corporation
• Works closely with the Sugar Regulatory Administration
Position on Issues on Biofuels Bill
• Maintain mandated blend of ethanol: 5% within two years of approval of bill to be increased to 10% four years thereafter • Incentivize production and development of biofuels apart from what is stipulated in Omnibus Investment Code • Restore provision on banning harmful additives, e.g., MTBE
Position on other related issues
• Tariff reduction to 1% for importation of ethanol to jumpstart the government’s Bioethanol Program • Increase tariff as soon as local supply is available • Expand areas of production by directing investments to lands beyond a 100km radius from existing sugar districts
Strategies
• Policy Advocacy for passage of Biofuels Bill • Information and Education Campaign
• Launching and maintenance of www.bioethanol.com.ph • Participation in public forums • Hosting of symposia to clarify features of Biofuels Bill • Dissemination and publication of information materials
• Research, i.e., Policy Study on Sugarcanebased Ethanol Program
Strategies
• Networking and Liaison with various stakeholders:
• Investors • Farmers • Technology Providers • Policy Makers • Car Manufacturers • Oil Companies • Consumers • Environmental Groups
Status of Biofuels Bill
• House Bill 4629 authored by Rep. Miguel Zubiri has been passed at the House of Representatives • Senate Bill 2226 sponsored by Sen. Miriam Santiago still pending at the Senate
Stumbling Blocks
• Chevron opposing the proposed ethanol mandate • Car manufacturers, specifically Toyota, raising concerns on compatibility with carbureted engines • Senators countering provision on incentives for potential investors • Tedious legislative process
Perspectives
• An ethanol industry will not flourish and be futile if the government does not mandate a minimum blend • The mandate and incentives shall drive investments into the countryside • Pushing for the development of an ethanol industry should not encroach on existing sugar industry; instead, it should create more opportunities for farmers to diversify their products
Perspectives
• Sugar industry has become a sugarcane industry, suggesting that the crop is a viable source, not only for food, but for energy as well • The sugar industry’s paramount concern is ensuring that domestic and international commitments are met • The country’s ethanol requirements – both at 5% and 10% -- can be satisfied through improved productivity and area expansion