Consulate General of the Philippines in New York
News Release, 24 August 2004

LEDAC eyes big cuts in oil imports through use of alternative fuels

Malacanang and Congress today agreed to work more closely in boosting the country’s search for alternative sources of energy in a bid to drastically cut down expenditures on oil importations.

This developed during the fifth Legislative-Executive Development Advisory Council (LEDAC) meeting at the Palace devoted mainly on energy issues in the light of soaring prices of fuel in the domestic market.

Emerging from the LEDAC meeting, Energy Secretary Vicente Perez Jr. told reporters that he briefed the legislators on five proposed laws critical to the country’s thrust toward energy independence.

Perez identified the measures as the Transco Franchise bill, the Natural Gas bill, the Renewable Energy bill, LPG (Liquefied Petroleum Gas) bill and the Alternative Fuels Utilization bill.

The Transco Franchise bill aims to enhance the value of the state-owned National Transmission Co. (Transco) power transmission grids nationwide to make them more attractive to prospective investors.

The natural gas measure seeks to promote natural gas as a "secure, stable and clean" source of energy, as well as encourage competition by liberalizing the entry of more players and instituting fair trade mechanisms. The measure intends to lay the groundwork on the widespread use of cleaner fuel and natural gas "as a fuel of choice."

The renewable energy bill promotes the development of renewable energy resources through a package of government incentives. Perez said this measure hews closely to President Gloria Macapagal-Arroyo’s five-point energy independence agenda involving the exploitation of wind, biomass, solar, coal and ocean as non-traditional sources of energy.

The LPG bill imposes "more stringent safety standards" and heavier penalties or sanctions to violators to protect consumers from illegal trade practices.

Perez said the alternative fuels utilization bill is very popular among legislators whose districts host sugar centrals.

Addressing a recent convention of the Philippine Sugar Technologists in Cebu City, President Macapagal-Arroyo batted for the full development and promotion of ethanol, a sugarcane-based alternative fuel, for the transport sector.

Legislators present at today’s LEDAC meeting included Senate President Franklin Drilon, Speaker Jose de Venecia Jr., Senators Aquilino Pimentel, Miriam Defensor-Santiago, Juan Ponce Enrile, Ralph Recto and Juan Flavier; Representatives Simeon Datumanong, Gerry Salapuddin, Joey Salceda, Rolando Andaya Jr., Agapito "Butz" Aquino and Juan Miguel Zubiri.

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