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WHEREAS, Republic Act No. 9397, otherwise known as the Biofuels Act of 2006, mandates the use of biofuels to reduce dependence on imported oil without any detriment to the natural ecosystem, biodiversity, and food reserves of the country;

WHEREAS, sugar cane is one of the principal sources of bioethanol, a biofuel;

WHEREAS, SECTION 16 of the Rules and Regulations implementing Republic Act No. 9397 (IRR) mandates that the Sugar Regulatory Administration (SRA) shall at all times ensure that the supply of sugar is sufficient to meet domestic demand and that the price of sugar is stable; and that  SRA, together with the Department of Agriculture (DA), Philippine Coconut Authority (PCA) and other DA attached agencies, shall develop and implement policies supporting the National Biofuels Program and submit the same to the Secretary of the DA for consideration;

WHEREAS, Section 27.1 of the said IRR provides that the SRA shall develop and implement policies within the sugarcane industry in support of the National Biofuels Program and that it shall form a consultative body within the sugarcane industry to undertake the initiatives as stated in Section 27.2 and sub-paragraph of the said IRR;

WHEREAS, towards this end, Section 27.2 of the said IRR mandates the SRA to formulate the necessary guidelines in ensuring that the supply of sugar is significant to meet the domestic demand and that the price of sugar is stable;

WHEREAS, the Sugar Regulatory Administration (SRA) in its  August 7, 2007 Sugar Board Meeting had passed Resolution No. 2007-103 forming a Bioethanol Board;

WHEREAS, a Sugar Order pursuant to this Resolution had not yet been signed;

WHEREAS, it is necessary that the composition of the board is amended to include other representatives of stakeholders;

NOW THEREFORE, by virtue of the power vested in the Sugar Regulatory Administration (SRA) as provided for in Executive Order No. 18, Series of 1986, it is hereby ordered that:

SECTION 1. Formation of a Bioethanol Consultative Board. A Bioethanol Consultative Board is hereby formed and organized pursuant to and in accordance with Section 27.1 of the IRR of Republic Act No. 9397, as aforesaid.

SECTION 2. Powers and Functions. The said Board shall have the following powers and functions:

2.1 To act as a consultative body of the SRA in the development and implementation of policies within the sugarcane industry in support of the National Biofuels Program as provided for in said Republic Act No. 9397.

2.2 To conduct studies and recommend guidelines as to ensure full utilization of sugarcane and that the supply of sugar is sufficient to meet domestic demand and for other requirements at all times and that the price of sugar is stable.

2.3 To conduct studies and develop appropriate schemes to facilitate orderly allocation of sugarcane for both sugar and ethanol and to effect an appropriate system of classification and allocation in terms of sugar and sugar equivalent.

2.4 To do all such other things, transact such other business and perform such functions directly or indirectly necessary, incidental or conducive to the attainment of the purposes of the Bioethanol Board.

SECTION 3.  Composition. The said Board shall be composed of sugar cane industry stakeholders/participants, as follows:

3.1 The Administrator of SRA who will act as the Board’s chairman;

3.2 Five (5) members representing the existing national federations/associations of sugar planters/producers duly recognized by SRA, to wit:

3.2.1    Confederation of Sugar Producers Associations, Inc. (CONFED);

3.2.2    National Federation of Sugarcane Planters, Inc. (NFSP);

3.2.3    Panay Federation of Sugarcane Planters (PANAYFED);

3.2.4    United Planters Federation of the Philippines, Inc. (UNIFED); and

3.2.5    Luzon Federation of Sugarcane Growers Association, Inc. (LUZONFED).

3.3 Two (2) members, representing the existing national association of sugar millers, to wit:

3.3.1    Philippine Sugar Millers Association (PSMA); and

3.3.2    Association of Integrated Millers (AIM).

3.4 Two (2) members representing the Department of Agriculture (DA).

3.5 One member representing the unaffiliated planters

3.6 One member representing the Philippine Sugar Technologists (PHILSUTECH)

SECTION 4. The aforesaid members representing the federation/association of sugar planters and millers shall be designated by their respective federation/association.

SECTION 5. Other sugar planters/sugar planters association. On request or on its own initiative, the Board may invite other sugar planters/sugar planters association to attend the Board’s meeting as observer.

SECTION 6. Term of Office. The members of the Board shall hold office for a period of one (1) year coinciding with the sugar industry’s Crop Year, that is September - August of the following year.

SECTION 7. Meeting. The Board shall hold periodic meetings to be presided by its Chairman.

SECTION 8. Office. The Board shall hold office at Metro Manila, preferably in any one of the offices of the members.

SECTION 9. Reports. The Board shall submit periodic report to the Sugar Board for its study and evaluation.

SECTION 10. Budget and Compensation. The Board’s budget and the compensation of its members shall be as follows:

10.1 The budget of the Board shall be sourced through contributions from each of the Board’s members ( that is, the sugar planters/millers national associations and the concerned government agencies).

10.2 The members of the Board shall receive an annual compensation of One Peso (P1.00), inclusive of out of pocket expenses.

SECTION 11. Technical Secretariat. The Board shall be supported by a Technical Secretariat composed of persons from either the sugar cane industry or SRA, or both, who are knowledgeable and experts in the sugar cane industry.

SECTION 12. Repealing Clause. All provisions of Sugar Orders, Circular Letters, Rules and Regulations inconsistent with or contrary to this Order are hereby modified or revoked accordingly.

SECTION 13. Effectively. This Sugar Order shall take effect immediately.

Adopted: 17 Oct. 2007