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Executive Orders

Creating an Alcohol Commission

Executive Order No. 580

EXECUTIVE ORDER NO. 580 February 16, 1980

CREATING AN ALCOHOL COMMISSION

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 the Presidential Decree No. 1416, do hereby order:

Sec. 1. Creation of an Alcohol Commission. There is hereby created an Alcohol...

Summary of Executive Order No. 580

Creation of an Alcohol Commission
- An Alcohol Commission is created under the Office of the President to effect the production of alcohol for blending with gasoline as motor fuel. (Sec. 1)

Powers and Functions of the Commission
- Formulate policies, plans, programs, and guidelines for a national program on alcohol production and distribution for blending with gasoline. (Sec. 2.1)
- Promote the production and distillation of alcohol from alternative sources like sugar, cassava, and sorghum, and the utilization of their by-products. (Sec. 2.2)
- Promote and coordinate research and development activities on alcohol production, utilization as motor fuel, and various feedstock possibilities. (Sec. 2.3)
- Determine the areas of responsibility of various agencies involved in the program. (Sec. 2.4)
- Determine work programs, time schedules, and resolve conflicts or overlapping of functions among agencies, including pricing. (Sec. 2.5)
- Monitor and evaluate ongoing projects to ensure proper implementation. (Sec. 2.6)
- Engage directly in any aspect of the alcogas program if necessary, including land development, agricultural production, distillation, and related activities. (Sec. 2.7)
- Perform other functions as provided by law. (Sec. 2.8)

Organization of the Commission
- The Commission is governed by a Board of Commissioners composed of the Minister of Energy (ex-officio Chairman), Chairman of the Philippine Sugar Commission (ex-officio Vice Chairman), Minister of Finance, Minister of Agriculture, Minister of Industry, Minister of Natural Resources, and a Commissioner from the private sector appointed by the President. (Sec. 3)
- The Commission has an Executive Director appointed by the President as the Chief Executive Officer, under the administrative supervision and control of the Chairman. (Sec. 3)

Implementing Agencies
- Philippine Sugar Commission: Promote establishment of alcohol distilleries and ensure adequate supply of sugar cane for alcohol production. (Sec. 4.a)
- Ministry of Energy (through Philippine National Oil Company): Exclusive buyer of alcohol for motor fuel and responsible for distribution of alcogas, unless otherwise decided by the Commission. (Sec. 4.b)
- Ministry of Agriculture: Study technical aspects and problems of alcohol production from agricultural crops like cassava, corn, and sorghum, including economic cost analysis, and promote production from these crops if found feasible. (Sec. 4.c)
- Ministry of Industry: Promote manufacture of car and truck engines that can efficiently use alcogas as motor fuel, and process applications for establishing projects related to the alcogas program through the Board of Investments. (Sec. 4.d)
- Ministry of Finance: Study and recommend the extent of reduction or elimination of sales taxes on alcohol to enable alcogas to compete effectively with gasoline prices at pump stations. (Sec. 4.e)
- Ministry of Natural Resources: Identify new public land areas that can be made available for the production of agricultural crops like sugar cane, corn, cassava, and sorghum to be used as feedstock for alcohol production. (Sec. 4.f)
- Other implementing agencies shall support the alcogas program according to their areas of concern and as determined by the Commission. (Sec. 4)

Appropriations
- An amount necessary to defray the operational expenses of the Commission for 1980 is appropriated. (Sec. 5)
- Thereafter, the appropriation of the Commission shall be included in the General Appropriations Act. (Sec. 5)

Repealing Clause
- Letter of Instructions No. 888 creating the Inter-Agency Committee to Accelerate the Implementation of the National Alcogas program and other inconsistent laws, rules, and regulations are repealed or modified accordingly. (Sec. 6)

Effectivity
- This Executive Order shall take effect immediately. (Sec. 7)

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