Opposition wants Biofuels Bill start date staggered

As government moves to regulate the production, storage and licensing of biofuels in the country, the opposition Members of Parliament want the commencement of the law staggered for five years.

Presenting the opposition's views on the Biofuels Bills, 2016 to the parliamentary committee on Natural Resources, MP Simon Oyet argued that right now the country has not yet built enough capacity to produce biofuel at commercial levels.

"Biofuel production is still at initial stages of research and development not yet at commercial levels. Raising the production levels to commercial levels requires incentives, investors, technology and time which the country has not yet built.

"Staggering the commencement date would help government build capacity, and also enable feedstock production rise to commercial levels," Oyet said.

He further argued that this period will also be used to put in place modalities and mechanisms for technology and regulations development.

He however warned that with an already food problem in the country, the Bill is likely to worsen the situation if implemented in its current state.

Oyet who is also shadow minister for energy and mineral development expressed concern that the high demand for food crops for biofuel is likely to cause increased competition for land as more acreage is converted to the production of energy crops, leaving less acreage available for other crops.

"Rather than producing for food, farmers are going to change and start producing for biofuel industries that pays much better than producing for food consumption. So we need to amend the clause to exclude food crops,"

He proposed that in order to ensure food security and avert the risk of escalating food prices, some    clauses in the Bill be amended to exclude certain food crops as shall be listed in the regulations.

"The primary impact of biofuels on food inflation is from increases in the farm prices of commodities that contribute to producing our food supply. Farm prices are largely determined by supply and demand. Thus, greater demand for energy crops also results in increasing prices for other crops that must compete for the same land," Oyet said.

In order  to promote  the use of biofuel and increase the reserve base of the oil and gas resources in Uganda, government has come up with a regulation to promote the production, storage and licencing of biofuels.

Biofuels is a special kind of fuel extracted from agricultural crops and can be used alone or blended with petro or diesel to run motor vehicle engines, or power plants. Government says blending this fuel with other petroleum products would enable the country alleviate the energy shortfalls in the country.

According to the Biofuels Bills, 2016, to be tabled in Parliament, the new law is aimed at regulating the production, storage, licensing and transportation of biofuels.

 It also addresses the role of the ministry of Energy and Uganda National Bureau of Standards with regard to the use and management of biofuels, issues of licence, penalties and marketing.

Once passed into law, all petroleum products supplied in Uganda will be will be blended with biofuels in accordance with the laws governing petroleum supply in the country.