Senate Postpones Biofuels Reform Debate Due to Lack of Votes

The ruling party decided to postpone the Senate's treatment of a bill modifying the biofuels production regime after failing to secure the necessary votes to advance the initiative. The session scheduled for this Friday was suspended following internal differences in parliamentary coordination.

The bill, promoted by the ruling bloc leader Patricia Bullrich, had obtained committee approval last week. La Libertad Avanza sought to bring it to the chamber with support from dialogue-friendly opposition blocs, but the agreement fell short of guaranteeing its passage.

Among the legislators who had spoken with Bullrich to push for changes were Flavia Royón, from Salta; Carolina Moisés, from Jujuy; and Beatriz Ávila, from Tucumán. Support from representatives of sugar-producing provinces is relevant because bioethanol derived from sugarcane appears among the segments affected by the reform.

The proposal establishes raising the mandatory bioethanol blending requirement in gasoline to 15%, with participation from sugarcane, corn, and a competitively-determined component. It also foresees gradually raising biodiesel blending with diesel to 10%, while incorporating limits on corporate concentration and more open contracting mechanisms.

The scheme generates resistance among small and medium-sized enterprises in Buenos Aires that depend on mandatory biodiesel quotas. These companies warn that market expansion could favor larger-scale plants in Santa Fe linked to export companies, leaving Buenos Aires-based facilities in a critical situation.

The bill also seeks to provide greater long-term investment predictability for the sector. However, the lack of political consensus and disagreements over distribution of the expanded market prevented, for now, the initiative from being discussed in the chamber.

With information from Energía Online.