Endorsement of Renewable Energy Sources
- A strategic shift from depletable fuels to regenerative energy forms is necessary.
- Alcohol produced from large, professionally-managed energy farms is identified as a viable alternative.
- Extensive technical experiments have proven the feasibility of alcohol as a motor fuel.
Challenges Hindering Alcohol Adoption
- High revenue taxes on alcohol have negatively impacted its competitive pricing against gasoline.
- Alcohol production and utilization involve complex agro-industrial operations.
- Effective implementation requires coordination among multiple government ministries and agencies.
Creation and Composition of the Inter-Agency Committee
- An Inter-Agency Committee was established to accelerate the National Alcohol Program's implementation.
- The Committee is chaired by the Ministry of Energy, co-chaired by the Philippine Sugar Commissioner, and vice-chaired by the Minister of Finance.
- Members include Ministers of Agriculture, Natural Resources, Industry, and Land Reform.
Objectives and Functions of the Inter-Agency Committee
- To produce and recommend a comprehensive National Alcogas Program ready for immediate presidential approval.
- Program to include physical details, implementation schedules, and identification of responsible implementors.
Specific Agency Responsibilities
- Ministry of Energy: Plan and prepare logistical infrastructure for efficient alcohol distribution from production sites to fuel pumps; coordinate with production agencies on logistic installations.
- Ministries of Agriculture, Land Reform, Natural Resources, and the Philippine Sugar Commission: Identify prioritized agricultural lands suitable for alcohol plantations with minimal economic disruption, and schedule availability.
- Philippine Sugar Commission (PhilSuCom): Accelerate projects in Hinoba-an and Cagayan Valley; report on progress; prepare an economic cost study of sugar-based alcohol production.
- Ministry of Agriculture: Study technical aspects and challenges of alcohol production from corn and cassava; prepare economic cost analysis for these feedstocks.
- Ministry of Industry: Plan design and manufacture of engines compatible with alcohol fuels, including dual-fuel capability; integrate into vehicle manufacturing programs.
- Ministry of Finance: Recommend reduction or elimination of sales taxes on alcohol to improve price competitiveness with gasoline, in consultation with relevant agencies.
Committee Powers and Administrative Provisions
- Authorization to form sub-committees for specialized planning aspects.
- Empowered to consult any persons or institutions necessary for effective program implementation.
Legal Effect and Issuance
- The directive was issued by the President of the Philippines to foster an effective and coordinated national strategy for alcohol fuel utilization.
- The document explicitly provides the framework and governance structure for the program's expedited development and deployment.