14 January 2008

MIRIAM TO CONGRESS: “DECELERATE” BIOFUEL

Santiago was reacting to a statement in Manila last week of Dr. Hartmut Michel, 1998 Nobel prizewinner for chemistry, that biofuel development is counterproductive, because it produces little energy, compared to other alternative sources.

Ironically, Santiago was the Senate author and sponsor of the Biofuels Act signed by President Arroyo into law in January last year.

“The Biofuels Act is only a cushion for the global increase in oil prices. It is only meant to be a runup to the Renewable Energy Bill, which I will sponsor in the Senate when session opens at the end of the month,” Santiago said.

The Biofuels Act requires a minimum 1 percent biodiesel blend in diesel fuel, and 5 percent bioethanol blend in gasoline fuel, prompting business speculators to call for the conversion of riceland to sugarcane, corn, cassava, nipa, jatropha, palm, soy, grapeseed, and coconut.

“The Biofuels Oversight Committee is intended not only to ensure that the law will reduce the country’s dependence on imported oil, but also to prevent corporate greed and political opportunism from endangering food security,” Santiago said.

Santiago, chair of the Senate energy committee, said that at a recent meeting, her committee voted to adopt all the proceedings of the prior Congress, meaning that the proposed Renewable Energy Bill can go immediately without additional public hearings to the plenary session for debate.

“The Biofuels Act merely addresses energy use in the transport sector. But the renewable energy bill will cover all energy applications outside the transport sector,” Santiago said.

Santiago said that the main emphasis of the renewable energy program should not be biofuel, but hydropower, geothermal, solar, wind, and biomass power.

“Some politicians have overhyped the Biofuels Act to burnish their image, thus misleading the public. The Biofuels Act raises a serious debate on food versus biofuels in a small island country like ours,” she said.

Santiago enthusiastically supported Dr. Michel’s suggestions at the Nobel forum last week that instead of putting money in biofuel development, the government should put money in wind power.

“Biofuel is landbased, and will eventually compete with food. Because the Philippines has a small land area, biofuel production will tend to encroach on food production. Corporations are already searching for millions of hectares for jatropha alone. We have to step on the brakes and decelerate,” Santiago said.

She said that during President Arroyo’s state visit to Spain, Spanish businessmen expressed strong interest in helping the development of wind energy in the Philippines.

Santiago said that the renewable energy bill, like the Electric Power Industry Reform Act (EPIRA), will establish a renewable energy market and a wholesale electricity spot market.

“The renewable energy bill provide for the green energy option, which gives consumers the choice to use renewable energy, and accelerate open access,” Santiago said.

Santiago said that the renewable energy bill will provide fiscal incentives to eligible proponents such as income tax holiday, preferential realty tax rate, exemptions from import duties, and reduction of the government share from royalties.

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