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Adopted: 11 September 2015
Date Filed: 18 September 2015
WHEREAS, the biofuels law mandates that all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components;

WHEREAS, combined molasses requirement based on production capacities of fifteen (15) SRA-registered bioethanol producers (ANNEX “A”) using various feedstocks like sugarcane, sugar and molasses reached 1.4 million metric tons while locally-produced molasses is only around 1.0 million metric tons;

WHEREAS, out of the fifteen (15) SRA-registered molasses-based bioethanol producers, operational distilleries in 2015 have a total requirement of around 800,000 metric tons and two more distilleries are expected to operate by the last quarter of 2015 which will increase the demand of local molasses to around 1.0 million metric tons;

WHEREAS, the limitless participation of molasses-based distilleries in the bioethanol fuel program may trigger unreasonable spikes in the prices of molasses which will translate to an increase in the price of bioethanol fuel and use of imported molasses which is not allowed under the biofuels law;

WHEREAS, bioethanol production has been identified under the sugarcane road map as a major market for sugarcane and the main thrust of SRA and the Sugarcane Industry Development Act of 2015 is farm productivity improvement which will redound to the production of more sugarcane, sugar/sugar syrup and molasses to cater to the feedstock requirement of the bioethanol program in the medium-term;

NOW, THEREFORE, under and by virtue of the powers vested in SRA, it is hereby ordered that:

SECTION 1. Moratorium on the Issuance of SRA Registration on “New Applicants” of Molasses-Based Bioethanol Production

SRA shall no longer issue registration certificates to “new applicants” of molasses-based bioethanol production effective crop year 2015-2016 until such time that local molasses production exceeds the estimated requirements of existing bioethanol distilleries.

Registration of bioethanol producers using feedstocks other than molasses are not covered by the moratorium. SRA registration of bioethanol producers using hydrous alcohol shall be subject to policy issuances of the DOE as recommended by the NBB Bioethanol Committee.

All pending applications filed with SRA prior to the issuance of this order and all existing SRA-registered bioethanol producers applying for renewal of SRA registration who declares molasses as new or additional feedstock are exempted from the moratorium.

SECTION 2. Mandatory Declaration of all Feedstocks Used or Will Be Used for Bioethanol Production By Existing SRA-Registered Bioethanol Producers

Upon circulation of this Order, all SRA-registered bioethanol producers shall declare to SRA in writing their intended feed stocks and corresponding volume requirement expressed in metric tons. Feedstocks used derived from sugarcane, sugar, sugar syrup, molasses and any product or by-product from sugarcane shall appear in the registration certificates issued by SRA (ANNEX “B”) and subject to SRA regulation and monitoring.

SRA shall issue a new format of registration certificate starting CY 2015-2016 which shall include the authorized feedstocks to be used for bioethanol production. Bioethanol producers who have renewed its registration with SRA for the current crop year shall be issued with a new SRA registration certificate without any additional fees and charges upon receipt of the declaration of feed stocks used, as recommended by the Planning & Policy Department.

For the use of new feedstocks such as, but not limited to, hydrous ethanol and sugar syrup procured or processed by a separate production facility, SRA shall issue supplemental guidelines upon consultation with the sugar mills, bioethanol producers and the DOE.

SECTION 3. Penalties and Sanctions

Any violation of SRA policies and guidelines regarding the production of bioethanol fuel from sugarcane/molasses/sugar/sugar syrup/hydrous alcohol - based feedstocks shall be ground for revocation of registration with SRA as bioethanol producer and subject to the penalties and sanctions provided under Chapter VIII of the Joint Administrative Order of the NBB (NBB-JAO-2008-01, series of 2008). Upon revocation of SRA registration, SRA shall advise the Department of Energy (DOE) on such actions which may likewise result to suspension/revocation of DOE Accreditation or disqualification from the bioethanol fuel program of the concerned bioethanol fuel producer.

SECTION 3. Repealing Clause

Sugar orders, circular letters and other SRA issuances that are not consistent with this policy are hereby deemed repealed, revoked or amended accordingly.

SECTION 4. Effectivity

This policy takes effect upon ratification by the Sugar Board and publication in the UP Law Library.

By Authority of the Sugar Board:

(SGD) MA. REGINA BAUTISTA-MARTIN
Administrator