Biofuels in the Philippines: dancing on fire
By: Maj. Yoko Ramos-Vingno
Our worst nightmare is here – and it does not have any plans of leaving – looks like it is here to stay until such time that we get our acts together, which should be real quick – I mean, FAST! Prices of everything have extremely doubled – some tripled in the last six months. All the experts, scientists and everyone in the position had predicted that THIS thing is coming. Do we have a backup plan?
In my debut article here in BizNews Asia, which was June 2007, the price of crude oil was shockingly $73 a barrel. It was just last year and looking back it was not that shocking anymore! My suave and gentleman editor, Mr. Antonio Lopez, has been gracious and opened another window of opportunity for me -- a second career (fall back option, perhaps) which is writing – and so, I resumed my writing May 2008. It was just last month. And in my come back article – Biofuels: Culprit for global hunger, the price of crude oil was an astounding $126 per barrel. It’s that crazy! My second article is yet to come out and now, as of this writing – the price of oil is incredulously $135 a barrel, at its highest before falling to $130 a barrel on 01 June 2008 (from time magazine on line)!
The National Biofuels Board (NBB) of the Philippines, which was created under Section 8 of the Biofuels Law of 2006 or RA 9367, is responsible for the alternative fuels program of the government. This remarkable law was authored by Senator Juan Miguel Zubiri. He is clearly passionately into the future of Biofuels in the Philippines. He had solely defended his cause in the Senate -- having been attacked left and right in both Houses. Senator Miriam Defensor-Santiago and Congressman Roilo Golez had both aired their concerns over the implementation of the Biofuels Law which they say will affect production of our food and the negative effects in the atmosphere adding to the global warming.
The National Biofuels Board has a tough job ahead. It has to face a lot of bumps and obstacles like the never ending debate on food vs. fuel and the escalating oil price dilemma. NBB can be likened to a newborn; it has to be nurtured until it can be left alone. Our officials are doing their share in forming and guiding this baby.
Now we can see a bright future for this new baby courtesy of DOE Secretary Angelo Reyes. Secretary Reyes appointed his most trusted and able man, his undersecretary -- Mr. Ramon Santos, as the Executive Director of NBB.
Former Presidential Management Staff Secretary Renato S. Velasco, now chair of Philippine National Oil Company-Alternative Fuels Corporation (PNOC-AFC), staunch adviser and unfaltering friend of President Gloria Macapagal Arroyo, stands as Godfather to NBB. He took the first step and moved his magic wand in convincing all the members of this board to convene. He has taken an active role in pursuing the creation of the National Biofuels Board. Secretary Velasco is so enamored and driven by passion to make biofuels a success and as a model biofuels program -- in Asia. As well as to attain the President’s vision of making Philippines 60% energy independent from traditional fuel by 2010.
The NBB Executive Director
The current head of NBB is Mr. Ramon Santos, as its Executive Director. Mr. Santos is also concurrently an Undersecretary at the Department of Energy (DOE). DOE has been identified to lead and have supervision over the National Biofuels Board. Having two hats to wear and without any confusion, Usec Ramon Santos should not have a problem running this new agency -- he can even cut the chase of the so called going through the bureaucracy -- IF he has the right people to work for him double time to rescue us in this dreadful situation.
NBB’s first meeting
The first meeting of the National Biofuels Board was held at the Dusit Hotel in Makati City last May 2008. Those who attended the meeting were:
Ø Senator Juan Miguel Zubiri
Ø Department of Agriculture (DA) Secretary Arthur Yap,
Ø DA Undersecretary Berna Romulo-Puyat,
Ø Sugar Regulatory Commission (SRA) Administrator Rafael Coscuella,
Ø PAFC Chair Renato Velasco,
Ø and a team of experts from the University of the Philippines-Los Banos (UPLB) headed by Dean of Economics and Management, Dean Cabanilla.
The UPLB experts were sent by UPLB Chancellor Rey Velasco, also a leading supporter of Biofuels program.
The first road map was discussed and outlined. As well as the establishment of guidelines/safeguards to protect the food security program and to ensure the ample supply of food to the people through the following:
v First, banning biofuels feedstock planting in all irrigated and highly productive arable lands.
v Second, limiting the production of bioethanol gasoline replacement to sugar producing districts, i.e. utilizing only the excess production of sugar on which is almost 300,000 tons that will roughly translate to 400 million liters of bioethanol.
v Third, utilizing the almost 4M hectares of idle cogonal denuded mountain land to plant jatropha or malunggay to solve the biodiesel needs since the lands are not suitable for rice and corn due to the marginal sloping nature of the land.
2nd meeting at the DOE
The second meeting was chaired by the DOE Secretary Angelo Reyes. Picking up from the first meeting chaired by Senator Zubiri, Secretary Reyes instructed the NBB secretariat to go on full speed with implementation of the Biofuels Law.
The DOE, aside from recommending energy conservation i.e. shifting to compact fluorescent lamps and the use of alternative fuels to our engines, has also proposed to revive the National Government Energy Management Program.
Roadmap of Biofuels Development Master Plan
NBB Executive Director and DOE Undersecretary Ramon Santos stressed that “amidst food crisis issues, the Biofuel Development Master Plan will ensure that food security will be given primordial attention -- Philippines is abundant in biofuel crops and its sustainable production which will not affect food production and food security”.
The National Biofuel Board (NBB) is now preparing the Philippines Biofuel Development Master plan as a roadmap for strategic development and production of biofuel crops towards energy self sufficiency, agribusiness development and creation of wealth in the countryside.
NBB sought the expertise of the South East Asian Research Center in Agriculture (SEARCA) for the conduct of Assessment and Preparation of Philippines Biofuel Development Master plan. SEARCA, a Philippine based regional inter-government body, is also coordinating technical assistance to the Asian Development Bank (ADB) in conducting Biofuel Country Assessments of Lao PDR, Vietnam, Thailand, Cambodia, Myanmar and China.
So what is the program of NBB then?
The National Biofuels Board under the law states that it should have the following functions:
ü Monitor the National Biofuels Program (NBP) prepared by the Department of Energy (DOE);
ü Monitor the supply and utilization of Biofuels and biofuel-blends and recommend measures in cases of shortage of feedstock supply for approval of the DOE Secretary;
ü Determine the availability of locally sourced Biofuels and recommend to DOE the appropriate level or percentage of locally sourced Biofuels to the annual volume of gasoline and diesel sold and distributed in the country;
ü Review and recommend to DOE the adjustment in the minimum mandated biofuel blends subject to the availability of locally sourced biofuels;
ü Recommend to DOE program that will ensure the availability of the alternative fuel technology for vehicles, engine and parts in consonance with the mandated minimum biofuel-blends;
ü Recommend to DOE the use of biofuels in air transport taking into account the safety and technical viability and craft specific actions to be executed by the DOE and other appropriate government agencies concerning the implementation of the NBP, including its economic, technical, environment, and social impact.
Policy Declaration
Section 2 is the Declaration of Policy that the State is to reduce dependence on imported fuels with due regard to the protection of public health, the environment and natural ecosystem consistent with the country’s sustainable economic growth that would expand opportunities for livelihood mandating the use of biofuels as a measure to:
§ Develop and utilize indigenous renewable and sustainably-sourced clean energy sources to reduce independence on imported oil;
§ Mitigate toxic and green house gas emission;
§ Increase rural employment and income; and
§ Ensure the availability of alternative and renewable clean energy without detriment to the natural ecosystem, biodiversity and food reserves of the country.
In the Biofuels Law of 2006, Section 8: Creation and Organization of the National Biofuels Board:
Department of Energy: Chairperson
DOE is the lead department and shall work/coordinate with the different departments and agencies pursuant to section 7 of the Act.
Department of Finance
The DOF shall monitor the production and importation of biofuels through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC)
Department of Trade
DTI shall formulate and implement, in coordination with DOTC and DENR, a national motor vehicle inspection and maintenance program as a measure to substantially to reduce emission from the motor vehicles pursuant to Art 4, Section 21(d) of RA 8749, otherwise known as the Philippine Clean Air Act of 1999.
Department of Agriculture
DA has to work/coordinate with DOST in identifying and developing viable feedstock for the production of biofuels. Other function is to develop a national program for the production of crops use as feedstock supply. DA has to ensure increased productivity and sustainable supply of biofuels feedstock and shall institute program that would guarantee that a sufficient and reliable supply of feedstock is allocated for biofuels production.
Department of Labor and Employment
DOLE shall promote gainful livelihood opportunities and facilitate productive employment through effective employment service and regulation. Tariff Commission shall create and classify a tariff line for biofuels and biofuels-blends in consideration of World Trade Organization and Asean Free Trade Agreements
Department of Science and Technology
DOST shall work/coordinate with DA in identifying and developing viable feedstock for the production of biofuels. Through the Philippine Council for Industry and Energy Research and Development (PCIERD), shall develop and implement a research and development program supporting a sustainable improvement in biofuel production and utilization technology.
Sugar Regulatory Administration
SRA shall at all times ensure that the supply of sugar is sufficient to meet the domestic demand and that the price of sugar is stable and to develop and implement policies supporting the national biofuels program (NBP).
Philippine Coconut Authority
PCA shall develop and adapt a general program of development for the coconut and other palm oil industry in support of the NBP.
The law further states that a cooperative effort among the various government agencies are needed to ensure the effective implementation of the National Biofuels Program (NBP).
After assessing the prospects for biofuel of each crop, priorities will be set in terms of non-interference to food security, land use, global competitiveness, employment generation and wealth creation for farm smallholders. The Local Government Units (LGUs) shall assist the DOE in monitoring the distribution sale in use of biofuels and biofuel-blends.
PGMA’s legacy
President Gloria Macapagal Arroyo’s government has included a P90M budget for the staffing and operations of this new agency, the NBB. With such an enormous budget, the NBB is expected to effectively perform its tasks to ensure the successful implementation of the Biofuels Law.
President GMA may be unpopular to the people especially the masa and in the ratings but she will soon be remembered in history as the woman president who brought us – Biofuels!
Our worst nightmare is here – and it does not have any plans of leaving – looks like it is here to stay until such time that we get our acts together, which should be real quick – I mean, FAST! Prices of everything have extremely doubled – some tripled in the last six months. All the experts, scientists and everyone in the position had predicted that THIS thing is coming. Do we have a backup plan?
In my debut article here in BizNews Asia, which was June 2007, the price of crude oil was shockingly $73 a barrel. It was just last year and looking back it was not that shocking anymore! My suave and gentleman editor, Mr. Antonio Lopez, has been gracious and opened another window of opportunity for me -- a second career (fall back option, perhaps) which is writing – and so, I resumed my writing May 2008. It was just last month. And in my come back article – Biofuels: Culprit for global hunger, the price of crude oil was an astounding $126 per barrel. It’s that crazy! My second article is yet to come out and now, as of this writing – the price of oil is incredulously $135 a barrel, at its highest before falling to $130 a barrel on 01 June 2008 (from time magazine on line)!
The National Biofuels Board (NBB) of the Philippines, which was created under Section 8 of the Biofuels Law of 2006 or RA 9367, is responsible for the alternative fuels program of the government. This remarkable law was authored by Senator Juan Miguel Zubiri. He is clearly passionately into the future of Biofuels in the Philippines. He had solely defended his cause in the Senate -- having been attacked left and right in both Houses. Senator Miriam Defensor-Santiago and Congressman Roilo Golez had both aired their concerns over the implementation of the Biofuels Law which they say will affect production of our food and the negative effects in the atmosphere adding to the global warming.
The National Biofuels Board has a tough job ahead. It has to face a lot of bumps and obstacles like the never ending debate on food vs. fuel and the escalating oil price dilemma. NBB can be likened to a newborn; it has to be nurtured until it can be left alone. Our officials are doing their share in forming and guiding this baby.
Now we can see a bright future for this new baby courtesy of DOE Secretary Angelo Reyes. Secretary Reyes appointed his most trusted and able man, his undersecretary -- Mr. Ramon Santos, as the Executive Director of NBB.
Former Presidential Management Staff Secretary Renato S. Velasco, now chair of Philippine National Oil Company-Alternative Fuels Corporation (PNOC-AFC), staunch adviser and unfaltering friend of President Gloria Macapagal Arroyo, stands as Godfather to NBB. He took the first step and moved his magic wand in convincing all the members of this board to convene. He has taken an active role in pursuing the creation of the National Biofuels Board. Secretary Velasco is so enamored and driven by passion to make biofuels a success and as a model biofuels program -- in Asia. As well as to attain the President’s vision of making Philippines 60% energy independent from traditional fuel by 2010.
The NBB Executive Director
The current head of NBB is Mr. Ramon Santos, as its Executive Director. Mr. Santos is also concurrently an Undersecretary at the Department of Energy (DOE). DOE has been identified to lead and have supervision over the National Biofuels Board. Having two hats to wear and without any confusion, Usec Ramon Santos should not have a problem running this new agency -- he can even cut the chase of the so called going through the bureaucracy -- IF he has the right people to work for him double time to rescue us in this dreadful situation.
NBB’s first meeting
The first meeting of the National Biofuels Board was held at the Dusit Hotel in Makati City last May 2008. Those who attended the meeting were:
Ø Senator Juan Miguel Zubiri
Ø Department of Agriculture (DA) Secretary Arthur Yap,
Ø DA Undersecretary Berna Romulo-Puyat,
Ø Sugar Regulatory Commission (SRA) Administrator Rafael Coscuella,
Ø PAFC Chair Renato Velasco,
Ø and a team of experts from the University of the Philippines-Los Banos (UPLB) headed by Dean of Economics and Management, Dean Cabanilla.
The UPLB experts were sent by UPLB Chancellor Rey Velasco, also a leading supporter of Biofuels program.
The first road map was discussed and outlined. As well as the establishment of guidelines/safeguards to protect the food security program and to ensure the ample supply of food to the people through the following:
v First, banning biofuels feedstock planting in all irrigated and highly productive arable lands.
v Second, limiting the production of bioethanol gasoline replacement to sugar producing districts, i.e. utilizing only the excess production of sugar on which is almost 300,000 tons that will roughly translate to 400 million liters of bioethanol.
v Third, utilizing the almost 4M hectares of idle cogonal denuded mountain land to plant jatropha or malunggay to solve the biodiesel needs since the lands are not suitable for rice and corn due to the marginal sloping nature of the land.
2nd meeting at the DOE
The second meeting was chaired by the DOE Secretary Angelo Reyes. Picking up from the first meeting chaired by Senator Zubiri, Secretary Reyes instructed the NBB secretariat to go on full speed with implementation of the Biofuels Law.
The DOE, aside from recommending energy conservation i.e. shifting to compact fluorescent lamps and the use of alternative fuels to our engines, has also proposed to revive the National Government Energy Management Program.
Roadmap of Biofuels Development Master Plan
NBB Executive Director and DOE Undersecretary Ramon Santos stressed that “amidst food crisis issues, the Biofuel Development Master Plan will ensure that food security will be given primordial attention -- Philippines is abundant in biofuel crops and its sustainable production which will not affect food production and food security”.
The National Biofuel Board (NBB) is now preparing the Philippines Biofuel Development Master plan as a roadmap for strategic development and production of biofuel crops towards energy self sufficiency, agribusiness development and creation of wealth in the countryside.
NBB sought the expertise of the South East Asian Research Center in Agriculture (SEARCA) for the conduct of Assessment and Preparation of Philippines Biofuel Development Master plan. SEARCA, a Philippine based regional inter-government body, is also coordinating technical assistance to the Asian Development Bank (ADB) in conducting Biofuel Country Assessments of Lao PDR, Vietnam, Thailand, Cambodia, Myanmar and China.
So what is the program of NBB then?
The National Biofuels Board under the law states that it should have the following functions:
ü Monitor the National Biofuels Program (NBP) prepared by the Department of Energy (DOE);
ü Monitor the supply and utilization of Biofuels and biofuel-blends and recommend measures in cases of shortage of feedstock supply for approval of the DOE Secretary;
ü Determine the availability of locally sourced Biofuels and recommend to DOE the appropriate level or percentage of locally sourced Biofuels to the annual volume of gasoline and diesel sold and distributed in the country;
ü Review and recommend to DOE the adjustment in the minimum mandated biofuel blends subject to the availability of locally sourced biofuels;
ü Recommend to DOE program that will ensure the availability of the alternative fuel technology for vehicles, engine and parts in consonance with the mandated minimum biofuel-blends;
ü Recommend to DOE the use of biofuels in air transport taking into account the safety and technical viability and craft specific actions to be executed by the DOE and other appropriate government agencies concerning the implementation of the NBP, including its economic, technical, environment, and social impact.
Policy Declaration
Section 2 is the Declaration of Policy that the State is to reduce dependence on imported fuels with due regard to the protection of public health, the environment and natural ecosystem consistent with the country’s sustainable economic growth that would expand opportunities for livelihood mandating the use of biofuels as a measure to:
§ Develop and utilize indigenous renewable and sustainably-sourced clean energy sources to reduce independence on imported oil;
§ Mitigate toxic and green house gas emission;
§ Increase rural employment and income; and
§ Ensure the availability of alternative and renewable clean energy without detriment to the natural ecosystem, biodiversity and food reserves of the country.
In the Biofuels Law of 2006, Section 8: Creation and Organization of the National Biofuels Board:
Department of Energy: Chairperson
DOE is the lead department and shall work/coordinate with the different departments and agencies pursuant to section 7 of the Act.
Department of Finance
The DOF shall monitor the production and importation of biofuels through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC)
Department of Trade
DTI shall formulate and implement, in coordination with DOTC and DENR, a national motor vehicle inspection and maintenance program as a measure to substantially to reduce emission from the motor vehicles pursuant to Art 4, Section 21(d) of RA 8749, otherwise known as the Philippine Clean Air Act of 1999.
Department of Agriculture
DA has to work/coordinate with DOST in identifying and developing viable feedstock for the production of biofuels. Other function is to develop a national program for the production of crops use as feedstock supply. DA has to ensure increased productivity and sustainable supply of biofuels feedstock and shall institute program that would guarantee that a sufficient and reliable supply of feedstock is allocated for biofuels production.
Department of Labor and Employment
DOLE shall promote gainful livelihood opportunities and facilitate productive employment through effective employment service and regulation. Tariff Commission shall create and classify a tariff line for biofuels and biofuels-blends in consideration of World Trade Organization and Asean Free Trade Agreements
Department of Science and Technology
DOST shall work/coordinate with DA in identifying and developing viable feedstock for the production of biofuels. Through the Philippine Council for Industry and Energy Research and Development (PCIERD), shall develop and implement a research and development program supporting a sustainable improvement in biofuel production and utilization technology.
Sugar Regulatory Administration
SRA shall at all times ensure that the supply of sugar is sufficient to meet the domestic demand and that the price of sugar is stable and to develop and implement policies supporting the national biofuels program (NBP).
Philippine Coconut Authority
PCA shall develop and adapt a general program of development for the coconut and other palm oil industry in support of the NBP.
The law further states that a cooperative effort among the various government agencies are needed to ensure the effective implementation of the National Biofuels Program (NBP).
After assessing the prospects for biofuel of each crop, priorities will be set in terms of non-interference to food security, land use, global competitiveness, employment generation and wealth creation for farm smallholders. The Local Government Units (LGUs) shall assist the DOE in monitoring the distribution sale in use of biofuels and biofuel-blends.
PGMA’s legacy
President Gloria Macapagal Arroyo’s government has included a P90M budget for the staffing and operations of this new agency, the NBB. With such an enormous budget, the NBB is expected to effectively perform its tasks to ensure the successful implementation of the Biofuels Law.
President GMA may be unpopular to the people especially the masa and in the ratings but she will soon be remembered in history as the woman president who brought us – Biofuels!
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