Department of Energy urged to fasttrack review process of EO 449

MANILA, Philippines - With the announcement on ethanol importation for 2010 totaling 150 million liters, the Ethanol Producers Association of the Philippines (EPAP) is urging the Department of Energy (DOE) to fast-track the review process of EO 449.

EPAP Director Tetchi Cruz-Capellan said“ the demand projection released by National Biofuels Board (NBB) officially puts a cap on the volume of ethanol imports. By using local production figures as basis for the forecast, market risks for domestic ethanol are reduced.”

Capellan said they hope that the amendments would be formally announced by the DOE during the celebration of Earth Hour in March this year.

EPAP also reminded government that tariff and duties are the only policy instrument that effectively regulates imports. They are predictable, stable, and transparent market signals that entice domestic producers and attract investors.

Capellan said, “our request to review import duties were submitted to DOE six months ago. We believe there is already adequate information on ethanol production and enough time to finally decide the matter.”

EO 449 was signed by President Arroyo in 2006 to reduce import tariff on ethanol from 10 percent to one percent. The order was designed to jumpstart the Bio-fuels Program by making available to motorists ethanol-blended gasoline at the pumps. With no drop of ethanol being produced in the country then, the law allowed importation of ethanol at practically zero-tariff.

Capellan explained “EO449 has become irrelevant. The country produces 50 million liters at present. The continued flow of ethanol imports affects the producers’ bottom line and the private sector are increasingly getting frustrated over the delay in the tariff adjustments which the NBB already approved months ago.”

EPAP said it believes the slow pace undermines the present operations of ethanol plants and erodes the investment climate that legislators carefully created in support of climate change mitigation and green jobs creation.

In the Copenhagen summit, experts reported the 40 percent increase of global greenhouse gas emissions from fossil fuels compared to the 1990 levels.