Biofuels bill author to address concerns of carmakers, oil firms

Rep. Miguel Zubiri said yesterday he would be willing to input necessary safeguards to address major concerns of car manufacturers and oil companies on the impact of the proposed Biofuels Act on their operations.

Zubiri said he met with officials of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) to thresh out the remaining issues causing the delay in the passage of the bill.

On the concern of car manufacturers on the retrofitting of new car models to meet the standards on the use of bioethanol and biodiesel products, the lawmakers said he would be willing to include provisions in the bicameral conference that would address these issues.

He said he had assured the car manufacturers that he would support further amendments that would input a provision on "warranty" for the protection of car owners.

Zubiri added that he would also be willing to provide ample time for the affected industries to prepare for the implementation of the law.

"On the mandated one percent blend, we could also provide a mandated two year lead time after the effectivity of the law to pave the way for the development of ethanol and biodiesel plants and further testing of these products," he said.

According to Zubiri, the reluctance of the car manufacturers and major oil firms stemmed partly from the "misconception" that they would not be given enough time to carry out necessary preparations, including conducting of information campaigns on ethanol’s compatibility with existing cars.

"The idea is for all stakeholders to engage in dialogue instead of summarily shooting down an idea which attracted worldwide acceptance," he said.

He said if the Biofuels Bill will be passed this year, the affected industry will still have up to 2008 to prepare and ensure the smooth implementation of the proposed legislation.

But Zubiri recognized that worries of car and gasoline companies over the proposed introduction of ethanol-blended gasoline are part of the "change process."

"They will be consulted. Their cooperation is vital and valued. They are major players here, not mere spectators. Their inputs will be included in the total biofuel plan," he said.

Toyota Motors Corp. official and CAMPI executive director Jeff Matsuo earlier said they are not ready yet to accept any percentage of ethanol to gasoline but welcomed the use of one percent blend of coco-biodiesel in diesel engines.

For its part, Flying V, a pioneering oil firm on alternative fuels, welcomed the decision of CAMPI supporting a one percent coco-methyl ester or biodiesel blend.

CAMPI’s move came in the heels of the nationwide promo campaign of Flying V, which recently temporarily rolled back the pump prices of its preblended biodiesel to the level of ordinary diesel, to enable users to try biodiesel.

Flying V chief operating officer Paul Tanjutco has lauded CAMPI for joining the government’s efforts in promoting the use of alternative fuels.

He added that CAMPI’s latest position should put to rest concerns relating to the effect of bio-diesel on a vehicles’ engine. Studies have shown, such as the tests conducted by the Nihon University of Japan, that coco-diesel can be used in unmodified engines and can reduce hydrocarbon emissions.

For its part, the Philippine Fuel Ethanol Alliance, an advocacy-based coalition supporting the local production and use of ethanol, said worries of car manufacturers over the proposed introduction of ethanol-blended gasoline are "understandable" but should not prevent the country from embracing the crop-derived gasoline alternative as a means to achieve energy security, environmental quality, and rural employment.

The alliance is a vocal supporter of the proposed Biofuels Bill, currently pending in the Senate, which supports the gradual introduction of ethanol to the nation’s gasoline pool.

HB 4629, principally authored by Zubiri and supports the mandated blending of ethanol to gasoline, has already been passed in the Lower House in November last year.

Such measure is already being implemented in countries all over the globe, including world leader Brazil, the United States, and Asian powerhouses such as Thailand, India, and China.