Bill liberalizing biofuel imports finds Senate plenary support

THE HEAD of the Senate Committee on Ways and Means declared her support for a bill seeking to liberalize biofuel imports, following a Presidential certification of the measure as urgent.

Speaking to the chamber in plenary session, Sen. Juliana Pilar S. Cayetano called for the approval of Senate Bill No. 1965.

“Circumstances today compel us to revisit how these mandates operate during periods of extraordinary volatility in global fuel markets. While the use of local biofuels provides environmental and agricultural benefits, it is not always the cheaper alternative,” she told the chamber.

She added that the measure does not seek to remove the biofuel blend requirement. “Biofuels must still be blended with conventional fuels as required under the law.”

“What the measure provides is flexibility in the sourcing of these biofuels, allowing supply to be supplemented through imports in extraordinary circumstances

President Ferdinand R. Marcos, Jr. on Monday had certified the bill as urgent on Monday, citing the need to mitigate the impact of surging oil prices after the outbreak of fighting in the Persian Gulf.

In separate letters to Senate President Vicente C. Sotto III and Speaker Faustino G. Dy III, Mr. Marcos certified the “necessity of the immediate enactment” of Senate Bill No. 1965 and House Bill No. 8469, which are proposed amendments to Section 5 of Republic Act No. 9367 or the Biofuels Act of 2006.

The measure would grant the President authority to allow imports of bioethanol and biodiesel once the price of blended gasoline or diesel is 5% higher than that of the non-blended equivalent, for a period not exceeding one year.

The President may authorize imports upon the recommendation of the Department of Energy and the National Biofuels Board, regardless of the supply of domestically produced biofuel components.

The President said that this would “mitigate the impact of rising fuel prices amid escalating geopolitical tensions and volatility in the global market,” following the threatened disruption of petroleum supply from the Persian Gulf.

Mr. Marcos added that this would also strengthen resilience against future disruptions.

Ms. Cayetano said previously that thechamber is likely to tackle the measure before session adjourns  this week.

“I don’t want to fast track, I want to be sure that there is a thorough discussion. I’m ready to sponsor it. If they have changes, they can just make amendments,” she told reporters earlier in the day before the start of a Senate caucus.

Ms. Cayetano added that the domestic bioethanol producers may be affected by the liberalization of import rules.

“There are two major industries here, coconut and sugar. And they are affected in different ways because there are two different industries,” she said.

The Senate’s version also states that proceeds from tariff collections from imported biofuel will go towards social amelioration programs for farmers and workers in the biofuels industry.

The program will be overseen by the Department of Social Welfare and Development, in consultation with the Department of Agriculture and other government agencies, according to the bills.

The US and Israel launched coordinated military strikes on Iran starting Feb. 28, targeting Tehran’s military assets and leadership.

Entering its third week, the escalating Iran war has severely disrupted global petroleum flows, as Iran threatened to attack vessels seeking to transit the Strait of Hormuz. — Adrian H. Halili