WHEREAS, the rising cost of motor fuel has affected and continuously affects the economy of the country;

WHEREAS, in order to cushion the adverse effect of high motor fuel cost on the economy, it is imperative that alternative sources of motor fuel be immediately developed;

WHEREAS, it is therefore necessary to provide for an effective agency that would formulate and carry out a national program for the production of alternative sources of motor fuel; and

WHEREAS, under Presidential Decree No. 1416, the President is empowered to undertake such organizational and related improvements as may be appropriated in the light of changing circumstances and new developments.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, and pursuant to the authority vested in me by Presidential Decree No. 1416, do hereby order:

SECTION 1. Creation of an Alcohol Commission. - There is hereby created an Alcohol Commission, hereinafter referred to as the Commission, under the Office of the President which shall be responsible for effecting the production, in the soonest possible time, of alcohol in adequate quantities for blending with gasoline for use as motor fuel.

SECTION 2. Powers and Functions of the Commission. - The Commission shall have the following functions:

1. Formulate and define the policies, plans and programs and the necessary guidelines for carrying out and implementing a national program for the production and distribution of alcohol for blending with gasoline as motor fuel;

2. Promote the production and distillation of alcohol from alternative sources such as sugar, cassava, and sorghum and the effective utilization of their by-products;

3. Promote and coordinate the conduct of research and development activities on alcohol production, its utilization as motor fuel; as well as various feedstock possibilities;

4. Determine and indicate the areas of responsibility of the various agencies involved in the program, including those not represented in the Commission;

5. Determine, in consultation with the implementing agencies concerned, their respective work programs and time schedules for carrying them out, and resolve actual or potential areas of conflict, overlapping of jurisdiction or functions, including, but not limited to, the question of pricing;

6. Monitor and evaluate all on-going projects undertaken by the various agencies concerned to ensure their proper implementation in accordance with pre-determined schedules;

7. Where necessary and in the interest of accelerating the implementation of the alcogas program, engage directly in any aspect of the alcogas program, including land development agricultural production, distillation, and other related activities; and

8. Perform such other functions as may be provided by law.

SECTION 3. Organization of the Commission. - The Commission shall be governed by a Board of Commissioners composed of the Minister of Energy, who shall be ex-officio Chairman of the Commission, the Chairman of the Philippine Sugar Commission, who shall be ex-officio Vice Chairman of the Commission, the Minister of Finance, the Minister of Agriculture, the Minister of Industry, the Minister of Natural Resources and another Commissioner to be appointed by the President from the private sector.

The Commission shall have an Executive Director to be appointed by the President. The Executive Director who shall be the Chief Executive Officer of the Commission shall be under the administrative supervision and control of the Chairman.

SECTION 4. Implementing Agencies. - The implementation of the alcogas program shall be the responsibility of the various agencies concerned as directed and coordinated by the Commission. Initially, this shall be as follows:

a. The Philippine Sugar Commission shall promote the establishment of alcohol distilleries, whether public or privately owned, and ensure the adequate supply of sugar cane for the production of alcohol.

b. The Ministry of Energy, through the Philippine National Oil Company, shall be the exclusive buyer, unless otherwise decided upon subsequently by the Commission, of alcohol produced for use as motor fuel and shall be responsible for the distribution of alcogas.

c. The Ministry of Agriculture shall study the technical aspects and problems of alcohol production from agricultural crops such as cassava, corn and sorghum, including an economic cost analysis thereof, and promote the production of alcohol from these crops as may be found to be technically and economically feasible.

d. The Ministry of Industry shall promote the manufacture of car and truck engines that can most efficiently accommodate the use of alcogas as motor fuel, and through the Board of Investments, process and approve applications for establishing projects related to the implementation of the alcogas program.

e. The Ministry of Finance shall study and make recommendations on the extent of reduction or elimination of sales taxes on alcohol, to enable alcogas to compete effectively with gasoline prices at the pump stations.

f. The Ministry of Natural Resources shall identify new land areas of the public domain that can be made available for the production of agricultural crops such as sugar cane, corn, cassava and sorghum to be used as feedstock for the production of alcohol;

The other implementing agencies shall support the alcogas program according to their respective areas of concern and as may be determined by the Commission.

SECTION 5. Appropriations. - There is hereby appropriated such amount as may be necessary to defray the operational expenses of the Commission for 1980. Thereafter, the appropriation of the Commission shall be included in the General Appropriations Act.

SECTION 6. Repealing Clause. - Letter of Instructions No. 888 creating the Inter-Agency Committee to Accelerate the Implementation of the National Alcogas Program and such other laws, rules and regulations inconsistent herewith are hereby repealed or modified accordingly.

SECTION 7. Effectivity. - This Executive Order shall take effect immediately.

Done in the City of Manila, this 16th day of February, in the year of Our Lord, Nineteen Hundred and Eighty.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Assistant