Guidelines on Implementing College and Technical-Vocational Education Assistance to Workers in the Biofuels Industry, Utilizing Coconut as Feedstock

July 3, 2018

DOLE DEPARTMENT ORDER NO. 193, S. 2018

GUIDELINES ON THE IMPLEMENTATION OF THE COLLEGE AND TECHNICAL-VOCATIONAL EDUCATION ASSISTANCE COMPONENT OF THE TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM UNDER THE SOCIO-ECONOMIC PROJECTS OF THE SOCIAL AMELIORATION AND WELFARE PROGRAM FOR WORKERS IN THE BIOFUELS INDUSTRY, UTILIZING COCONUT AS FEEDSTOCK

Pursuant to Sections 11 (e) and 17 of Republic Act No. 9367, otherwise known as 'The Biofuels Act of 2006'; the Joint Administrative Order No. 2008-1 Series of 2008, and upon the recommendation of the Tripartite Consultative Council in the Biodiesel Sector, the Department of Labor and Employment (DOLE) hereby issue this Guidelines:

SECTION 1. Purpose. —

This Guidelines explains the process of availment and sets the standard to which qualified beneficiaries or scholarship grantee will be eligible to receive their choice of either college and/or technical vocational education assistance. It likewise clarifies the coverage of the Twenty per cent (20%) allocation for training and educational assistance under the Ninety-five percent (95%) of the Socio-Economic Project Fund of the Social Amelioration and Welfare Program for Workers in the Biofuel Industry, utilizing coconut as feedstock.

Specific to this, it shall set clear policies, standards and procedures on eligibility and selection of student grantees including their roles and responsibilities, documentary requirements, implementation, monitoring and evaluation system.

SECTION 2. Objectives. —

1. To prescribe the standards that will ensure the equitable distribution of resources and provision of other necessary support as may be needed by qualified beneficiaries or student grantees;

2. To rationalize the process of availing and amount of educational assistance to be received by qualified beneficiaries or student grantees; and

3. To explain the process of availing the college and/or technical vocational education assistance.

SECTION 3. Definition of Terms. —

1. Act — shall refer to the Biofuels Act of 2006.

2. AEF — shall refer to the "Administrative Expense Fund" (5% of the lien) allocated for the implementation of the SAWP in the biodiesel industry utilizing coconut as feedstock.

3. Beneficiary — shall refer to a biodiesel worker or his/her qualified dependent eligible to receive either a college and/or technical vocational education assistance under the Training and Educational Assistance Program of the Ninety-five percent (95%) of the Socio-Economic Project Fund of the Social Amelioration and Welfare Program for Workers in the Biofuel Industry, utilizing coconut as feedstock. CAIHTE

4. Biodiesel — shall refer to Fatty Acid Methyl Ester (FAME) or mono-alkyl esters derived from vegetable oils or animal fats and other biomass derived oils that shall be technically proven and approved by the DOE for use in diesel engines with quality specifications in accordance with the Philippine National Standards (PNS).

5. Biodiesel Worker — shall refer to a rank and file worker or employee, regardless of employment status, in a CME plant and CNO mill, including farm worker and farmer engaged in copra production or supplying raw or whole coconuts to copra mills supplying copra to CNO mills, used as feedstock for biofuel production.

6. Biofuel — shall refer to bioethanol and biodiesel and other fuels made from biomass and primarily used for motive, thermal and power generation with quality specifications with the PNS and added or blended to petroleum fuels to enhance or alter chemical or physical properties and improve performance/usage of the fuels.

7. BWSC — shall refer to the Bureau of Workers with Special Concerns of the Department of Labor and Employment created under Executive Order No. 366 series of 2007.

8. CME — shall refer to Coconut Methyl Ester or coco-biodiesel which is derived from coconut.

9. CME plant — shall refer to the facility where CME is processed into coco biodiesel.

10. CME producer — shall refer to the duly accredited CME producer enjoying benefits from fiscal incentives and tax exemptions provided for under RA 9367 or existing laws.

11. CNO Mill — shall refer to the duly accredited coconut mill whose coconut oil was delivered and used for the production of coco biodiesel (CME).

12. College Education Assistance (CEA) — shall refer to the college scholarship program provided for biofuels workers and their dependents through the provision of financial assistance for students who are taking up courses identified in the Human Resource Development Plan in the Biodiesel Sector, employment demand in the local economy as listed under the DOLE in-demand courses, TESDA and the Commission on Higher Education (CHED) advisory.

13. Dependent — shall refer to a legitimate or legitimated spouse, legally adopted child, legitimate or illegitimate child, including grandchildren of the biodiesel worker who are not gainfully employed.

14. DOE — shall refer to the Department of Energy created under Republic Act No. 7638, as amended.

15. DOLE — shall refer to the Department of Labor and Employment created under Executive Order No. 126, as amended.

16. Farm worker — shall refer to a worker who works in a coconut farm engaged in copra production or supplying raw or whole mature coconuts to Copra or CNO Mills for copra production, subsequently used for the production of CME.

17. Farmer — shall refer to farm owner, leaseholder, tenant-cultivator, who operates a coconut farm for copra production and those who sell raw or whole mature coconuts to Copra or CNO Mills for copra production, subsequently used for the production of CME.

18. Farmers' Association, Group or Cooperative — shall refer to an organization composed of coconut farmers who are engaged in copra production or supplying raw or whole mature coconuts to Copra or CNO Mills for copra production, subsequently used for the production of CME, and duly registered with DOLE, Cooperative Development Authority (CDA) and the Securities and Exchange Commission (SEC).

19. Farm Workers' Association, Group or Cooperative — shall refer to an organization composed of farm workers who work in coconut farms engaged in copra production or supplying raw or whole mature coconuts to Copra or CNO Mills for copra production, subsequently used for the production of CME, and duly registered with DOLE, CDA, and SEC.

20. Feedstock — shall refer to organic sources such as molasses, sugarcane, cassava, coconut, jatropha, sweet sorghum or other biomass used in the production of biofuel.

21. Fund — shall refer to the "Social Amelioration and Welfare Program for Biofuel Workers Fund" which will be used to provide assistance and finance the socio-economic programs of the rank and file workers involved in the production of CME and coconut farm workers whose crops are used as feedstock for the production of the CME.

22. NBB or Board — shall refer to the "National Biofuel Board" created under Section 8 of the Biofuels Act of 2006.

23. Plant Worker — shall refer to a rank and file worker in copra mills supplying copra to CNO Mills; CNO Mills directly supplying oil/feedstock to DOE accredited CME Plants; and CME Plants accredited by DOE, regardless of employment status, except managerial-level employees.

24. Plant Workers' Association, Group, Cooperative or Union — shall refer to any workers' association, union or cooperative composed of plant workers from Copra or CNO Mills supplying feedstock to DOE accredited CME Plants and CME Plants; and duly registered with DOLE, CDA, and SEC.

25. PCA — shall refer to the Philippine Coconut Authority created under PD 232 as amended by Presidential Decrees 961 and 1468;

26. Regional Office — shall refer to the Regional Offices of the Department of Labor and Employment implementing the SAWP in respective regional areas.

27. SAWP — shall refer to the Social Amelioration and Welfare Program.

28. Secretary — shall refer to the Secretary of the Department of Labor and Employment.

29. SEPF — refers to the 95% allocation in the collected lien or the Socio-Economic Project Fund of the Social Amelioration and Welfare Program for the implementation of social and economic projects to benefit biodiesel workers including their dependents.

30. Student Grantee — shall refer to a biodiesel worker or his/her qualified dependent who had been determined eligible to receive a college education assistance or technical vocational education assistance, as described in this Guidelines.

31. TCC — shall refer to the Tripartite Consultative Council for SAWP in the Biodiesel Sector of the Biofuel Industry tasked to be the advisory body to the DOLE in the policy and program development and implementation of SAWP.

SECTION 4. Covered Beneficiaries. —

The provision of college and technical-vocational educational assistanceship shall cover the following:

1. All biodiesel workers such as coconut farmers, farm workers and plant workers, who either wants to pursue or finish their baccalaureate degrees or undergo technical or vocational skills training or enhancement; and

2. Dependents of bonafide members of plant workers' group, association, cooperative or union, farmers' and farm workers' group, association or cooperative.

 Excluded to avail these are managerial-level employees.

SECTION 5. Allocation. —

For the initial implementation of the College and Technical Vocational Education Assistance, a total of nineteen (19) college education assistance scholars and a total of twenty five (25) technical vocational education assistance scholars shall be accepted and processed beginning School Year (SY) 2018-2019. This will be equitably distributed amongst DOLE Regional Offices implementing SAWP and/or regions that have been identified by the TCC as feedstock producing regions.

The annual scholarship allocation of identified regions shall be set by the BWSC based on the availability of funds and subject to the recommendations of the TCC and approval of the DOLE Secretary. For SY 2018-2019 and based on the available funds, below are the available scholarship slots per region:

Region	Available Slots for College Education Assistance**	Available Slots for Technical-Vocational Education Assistance***	TOTAL
NCR	4	8	12
IV-A	3	6	9
V*	2	2	4
VIII*	2	2	4
IX*	2	2	4
X	2	2	4
XI	2	2	4
XII	2	2	4
TOTAL	19	26	45

*Feedstock/Coconut producing region

**Computed based on a 4-year degree program

***Computed at Php50,000/training course

A separate memorandum shall be issued by the Bureau of Workers with Special Concerns (BWSC) to set the timetable and other necessary guidelines needed to be accomplished by student applicant for the processing of his/her scholarship application.

SECTION 6. General Provisions. —

1. Priority courses under the College and Technical Vocational Education Assistance of the training and educational assistance program under SAWP-SEP are those identified in the Human Resource Development Plan in the Biodiesel Sector, employment demand in the local economy as listed under the DOLE in-demand courses, TESDA and the Commission on Higher Education (CHED) advisory. The priority courses shall be reviewed by the TCC, in consultation with DOLE and PCA every three (3) years. DETACa

 Priority A: (Biodiesel sector requirement)

 Bachelor of Science in Chemistry, Chemical Engineering, Electrical Engineering, Mechanical Engineering, Agriculture, Agricultural Engineering, Agricultural Economics, Environmental Studies, and other short-term courses relevant to the biodiesel sector that may be identified and recommended by the TCC.

 Priority B: (Other courses, technical and vocational skills training)

 Locally in demand courses as identified by the CHED, DOLE and TESDA.

2. The College Education Assistance (CEA) shall provide a grant assistance with a maximum amount of Php50,000.00 per school year, regardless of the number of terms for each year, preferably in a state college or university accredited by CHED. This CEA shall be equitably given at the start of each semester.

 The CEA shall cover the payment for any of the following: tuition, laboratory fees, miscellaneous and other school fees, uniform/clothing allowance, meal allowance, book allowance and/or transportation allowance. The amount of grant assistance shall be reviewed by the TCC every three (3) years.

 Tuition and Other School Fees: (actual cost but not to exceed Php20,000.00 per semester or Php40,000.00 per year)

 Book allowance: Php2,500.00 per semester or Php5,000.00 per year

 Monthly stipend: Php500.00 per month or Php2,500.00 per semester or Php5,000.00 per year

 The monthly stipend may be adjusted up to a maximum of Php3,000.00 per month; provided that the total College Education Assistance per grantee shall not exceed the maximum of Php50,000.00 per year.

 Student grantees may avail any other scholarship/assistance provided the same shall be communicated in writing to BWSC before enrollment to ensure that there is no duplication in educational assistance.

3. The grant assistance for Technical Vocational Education Assistance shall be based on the corresponding TESDA rates existing in the locality or shall not exceed the maximum amount of Php50,000.00 per annum for each student grantee or availee. Depending on the nature of the training course, the grant assistance may also include provision of starter kits, uniform, and subsidy allowance for dormitory, meals, competency examination and other necessary expenses required by the accredited training institution during the training period.

4. The following are the required documents to be submitted by concerned proponents/beneficiaries/student applicant to the DOLE Field/Provincial Office for review and processing and subsequent endorsement to DOLE RO/BWSC for consideration or approval by the DOLE Secretary or his/her duly designated TCC Ex Officio Chairperson Alternate:

a. Latest two (2) 2x2 ID picture of applicant student;

b. For high school graduates, Certified true copy of grades from the school registrar or Report Card (Form 138), if high school graduate;

c. For college students, Certified true copy of academic records, if applicant has already earned academic units in college;

d. Certification from the workers' union, association/organization or cooperative or farmers' and farm workers group, association/organization or cooperative to ascertain that the applicant is a dependent of a bonafide employee/worker of a CME plant, CNO mill providing feedstock or farm supplying or trading whole mature nuts or copra to CNO mill providing feedstock (for dependents);

e. Certificate of employment of the student applicant to ascertain that he/she is a bonafide employee/worker of a CME plant, CNO mill providing feedstock or farm supplying or trading whole mature nuts or copra to CNO mill providing feedstock (for workers availing the program);

f. Certificate of employment of the parent/guardian from his/her company to establish that the applicant is a dependent of bonafide employee/workers of a CME plant, CNO mill providing feedstock or farm supplying or trading whole mature nuts or copra to CNO mill providing feedstock (for dependents);

g. Certification from workers' union, association/organization or cooperative or farmers' and farm workers' group, association/organization or cooperative to validate that the student applicant had been nominated by said group (for dependents and workers availing the program);

h. Copy of delivery or any other acknowledgement receipts of farmers to ascertain that they sell or trade whole mature nuts or copra to CNO mills supplying feedstocks (for nominees coming from farmers' and farm workers group, association/organization or cooperative);

i. Certificate of good health from a public health unit or accredited physician; and

j. Duly accomplished application form by student-applicant (please refer to Annex 1).

5. To avail of continued College Education Assistance, the student grantee shall comply the following:

a. Enroll immediately in the semester following the approval of his/her grant in priority course in a CHED accredited educational institution;

b. Carry a full load as prescribed in the approved curriculum;

c. Maintain a passing grade as prescribed by the chosen course/field of study;

d. Adhere to the terms and conditions as stipulated in the Scholarship Contract (please refer to Annex 2);

e. Present original copy of the official receipt of tuition and miscellaneous fee per semester; and

f. Submit photocopies of grades per semester.

6. The graduates shall be required with service obligations in the biodiesel sector up to a maximum of two (2) years after graduation, provided that there is an available job opening or opportunity within the industry. In the absence of any employment opportunity within the biodiesel industry, student grantee shall be required to provide community service such as: coaching, mentoring, support, or tutorial assistance to grade school pupils or high school students in his/her community, particularly those having difficulties in their academic studies as equivalent return service for the biodiesel sector, as certified by an authorized representative/officer in the school or community and/or by the DOLE Field/Provincial Office; or serve as resource persons during the conduct of advocacy caravan of DOLE on SAWP-biodiesel sector.

7. Due to limited slots and availability of funds, a student grantee may be allowed to change his/her college course and/or transfer school only once, provided that it shall not exceed the total number of semesters indicated in the Scholarship Contract.

8. In case a student grantee failed or dropped out from enrolled subject, re-taking the said subject shall be borne by the student grantee. Two failed subjects will automatically nullify the Scholarship Contract under CEA.

9. In case a student grantee discontinue his/her studies without reasonable justification, the student grantee's parent or legal guardian who is an employee/workers in the biodiesel sector, thru the sponsoring plant workers' association or union, shall fully reimburse to DOLE the expenses incurred by the student grantee. aDSIHc

10. The College and Technical Vocational Education Assistance shall not be stopped in case of sickness, disability, retirement or death of parent/guardian worker or employee, retrenchment or closure of biodiesel establishment. However, the assistance shall be discontinued in case of voluntary resignation, transfer to another industry or departure from the country for overseas employment by the concerned parent worker or employee in the biodiesel sector.

11. On an annual basis, the student grantees of the College and Technical Vocational Education Assistance shall be covered with social insurance during their training and education period from a recognized and legitimate life/accident insurance provider.

SECTION 7. Specific Provisions. —

A. Process of Availment

1. The DOLE Field/Provincial Office (FO/PO) shall initially evaluate the application and determine the legitimacy and completeness of said application. Within five (5) working days upon receipt, the DOLE FO/PO shall endorse the scholarship application to DOLE Regional Office for its review, evaluation, and endorsement to BWSC, within fifteen (15) working days upon receipt of application.

2. Using the attached evaluation matrices (please refer to Annex 3-A, 3-B, 3-C and 3-D), the DOLE Regional Office shall convene its SAWP Advisory Committee (composed of the Assistant Regional Director as committee head with concerned Field/Provincial Head and Heads of the DOLE Regional Technical Support and Services Division and Internal Management Services Division as members) to review, initially evaluate and endorse to the DOLE Regional Director the said application for his/her consideration and subsequently recommend for its approval from the DOLE Secretary or his/her duly designated TCC Ex Officio Chairperson Alternate, through the BWSC.

3. The BWSC shall review and evaluate the scholarship application within five (5) working days upon receipt and, if found in order, endorse the scholarship application for the consideration or approval by the DOLE Secretary or his/her duly designated TCC Ex Officio Chairperson Alternate. The BWSC shall prepare and send a report to all TCC members regarding actions taken on all received scholarship applications.

4. Once approved, the BWSC shall notify the DOLE Regional Office, within two (2) working days, on the recommendations or actions taken by the DOLE Secretary or his/her duly designated TCC Ex Officio Chairperson Alternate on the scholarship nomination.

5. Once the scholarship application is approved, the DOLE Regional Director and Student Grantee shall enter into a Scholarship Agreement, copy furnished BWSC.

B. Fund Release and Utilization

1. The release of fund to the scholarship grantee shall be in accordance with prevailing government accounting and auditing rules and procedures with emphasis on the avoidance of IUEEU (Irregular, Unnecessary, Excessive, Extravagant, or Unconscionable) expenditures under relevant COA Circulars.

2. The student grantee shall strictly adhere with the terms and conditions, as indicated in the Scholarship Contract.

3. The student grantee shall utilize the college or technical vocation education assistance received from DOLE exclusively for the intended purpose and in accordance with this Guidelines. Any modification in the Scholarship Contract shall only be made upon the written approval of the DOLE Secretary or his/her duly designated TCC Ex Officio Chairperson Alternate.

SECTION 8. Program Monitoring and Supervision. —

The DOLE RO, through concerned DOLE Field/Provincial Office, shall regularly monitor the student grantees' performance or compliance to the terms and conditions set in the scholarship contract and shall submit a summary report including photo documentation to the DOLE Secretary, through the BWSC.

While the BWSC shall provide technical assistance to the DOLE ROs and concerned DOLE Field/Provincial Offices, monitor and validate overall project implementation, conduct post-evaluation and document lessons learned in the implementation of this Guidelines, for reporting to the TCC and DOLE Secretary.

If necessary, a DOLE Assessment Team composed of BWSC, DOLE-Internal Audit Service (IAS) and DOLE-Financial Management Service (FMS) may conduct an end-project evaluation to determine efficiency on fund utilization, best practices, project effect or impact to beneficiaries, community and/or bioethanol sector.

The PCA and its regional office may also participate in the conduct of said monitoring and evaluation activity.

The cost of monitoring, coordination and other related activities of DOLE ROs on SAWP-SEPF shall be charged against the available SAWP-Administrative Expense Fund budget.

SECTION 9. Resolution of Issues. —

Any issues arising from the implementation or interpretation of this Guidelines and matters not covered by the provisions herein shall be submitted in writing to the DOLE Secretary, as endorsed by the TCC, for resolution and appropriate action.

SECTION 10. Effectivity. —

1. This Guidelines only covers the provision of college and technical vocational education assistance, which is part of the Training and Educational Assistance Program under the Ninety-five percent (95%) of the Socio-Economic Project Fund of the Social Amelioration and Welfare Program for Workers in the Biofuel Industry, utilizing coconut as feedstock.

2. This partially amends DOLE Department Order (D.O.) No. 161, Series of 2016 or Guidelines on the Implementation of the Socio-Economic Projects of the Social Amelioration and Welfare Program for Workers in the Biofuels Industry, utilizing coconut as feedstock, as amended by DOLE Department Order No. 176, series of 2017, while other parts of DOLE D.O. No. 161-16 and DOLE D.O. No. 176-17, respectively, not mentioned in this Guidelines shall remain in full effect. All other related issuances which are inconsistent herewith are repealed and modified accordingly. Further, any provisions of this Guidelines found inconsistent with prevailing laws and existing accounting and auditing rules and regulations shall be considered repealed, superseded or amended, accordingly. However, the remaining provisions in this Guidelines shall remain in full effect.

3. This Guidelines shall take effect fifteen (15) days upon publication in a newspaper of general circulation and/or in the Official Gazette. ETHIDa

(SGD.) SILVESTRE H. BELLO III

Secretary