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Adopted: 22 January 2015
Date Filed: 28 January 2015
WHEREAS, Section 5 of Republic Act No. 9367 otherwise known as the “Biofuels Act of 2006” mandates that all liquid fuels for motors and engines in the Philippines shall contain locally-sourced biofuels components;

WHEREAS, the Sugar Regulatory Administration (SRA) by virtue of Section 3(G) of Executive Order No. 18, series of 1986, has the power over the issuance of permits and licenses on the processing and manufacture of sugar and its by- products and other products derived from sugarcane and sugar;

WHEREAS, registration as well as reportorial requirements of bioethanol producers and prohibited acts and sanctions are likewise provided under Chapters II, III, and VIII of the National Biofuel Board Joint Administrative Order 2008-1, series of 2008 (NBB-JAO No. 2008-1);

WHEREAS, upon consultation with the bioethanol producers, certain provisions of Sugar Order No. 14, series of 2008-2009 shall be amended to ensure that locally-sourced biofuels components are used in the production of bioethanol fuel;

NOW, THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory Administration, the following Provisions or Sections of Sugar Order No. 14, series of 2008-2009 shall be amended as follows:

Section 1. Amendment to Section 4 - Assignment of SRA Regulation Officers in Bioethanol Production Facilities

An SRA Regulation Officer shall be assigned by SRA in every bioethanol production facility using sugarcane, sugar, sugar syrups and other products derived from sugarcane and sugar, including molasses, as feedstocks to monitor bioethanol production, obtain necessary reports and documents, collect the necessary liens and provide other regulatory, advisory and facilitation services.

Section 2. Amendment to Section 5 - Collection of Monitoring Fee and Bioethanol Research, Development & Extension (BRDE) Lien

Beginning crop- year 2009-2010, a monitoring fee of five (5) centavos and a Bioethanol Research, Development & Extension (BRDE) lien of ten (10) centavos per liter of bioethanol produced and sold shall be collected by SRA from all bioethanol producers using sugarcane, sugar, sugar syrups and other products from sugarcane and sugar, except molasses, as feedstocks for bioethanol manufacture. No lien shall be collected from bioethanol producers using molasses as feedstock.

The amount of monitoring fee and BRDE lien shall be converted in terms of Pesos per Metric Ton of feedstock. In the case of sugarcane as feedstock, the standard conversion formula shall be 70 liters bioethanol per metric ton sugarcane. Thus, P0.05/liter monitoring fee and P0.10/liter BRDE lien in the case of sugarcane as feed stock shall be P3.50/metric ton cane and P7.00/metric ton cane, respectively.

The conversion formula for sugar, sugar syrups and such other products from sugarcane used as feedstocks in the manufacture of bioethanol fuel shall be subject to approval by the Sugar Board upon the recommendation of the bioethanol producers and upon review by the SRA technical staff.

Section 3. Penalties and Sanctions

Any violation to SRA policies and guidelines governing the production of bioethanol shall be subject to revocation of SRA-issued registration certificates and to the penalties provided under Chapter VIII of the National Biofuel Board Joint Administrative Order (NBB-JAO) No. 2008-1, series of 2008.

Section 4. Repealing Clause

Sugar orders, circulars and other issuances that are not consistent with this Policy are hereby deemed repealed, revoked or amended accordingly.

Section 5. Effectivity

This policy takes effect after ratification by the Sugar Board and publication in the UP law library.

By Authority of the Sugar Board:

(SGD) MA. REGINA BAUTISTA-MARTIN
Administrator