FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES, )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No__1418

Introduced by Representative Susan A. Yap

EXPLANATORY NOTE.

‘This bill seeks to establish a regulatory framework in the trade for liquefied petroleum
gas (LPG) by setting standards and requirements for the LPG, auto-LPG, LPG containers and
LPG cylinder industries, with the end-goal of promoting general welfare.

‘The LPG industry has already marked a significant portion in the market due to its
high demand. Operating under a deregulated downstream oil industry structure, it allows its
market participants to engage in unfair and unsafe trade practices, hurting consumers and to a
large extent, causing negative externalities to society.

In view of such concerns, this bill proposes to put in place a comprehensive
framework for the monitoring and supervision of the said industry, placing the Department of
Energy (DOE) as the lead implementing agency in ensuring that participants comply with
national product quality and worker safety and consumer welfare standards. It also calls on the
participation of the Department of Trade and Industry as well as local government units in
enforcing stricter guidelines in the sale, requalification, distribution and repair of LPG
cylinders, among others. Penalties shall be imposed to prohibited acts, such as engaging in
business without standards compliance certificate or without accreditation, obstruction of
inspection, illegal storage, failure to comply with product standards, adulteration, under-filling,
unauthorized trading of LPG cylinders, tampering of these cylinders, importation of used or
second-hand LPG cylinders, sale or distribution to non-complying persons ot entities, and
pilferage of LPG, among others. Information shall be disseminated accordingly to the general
public.

‘Through this measure, we will be able to contain the risks associated with sub-standard
LPG products, which pose serious threats to society. A two-edged sword, it promotes fait
competition amongst businesses while protecting the rights and welfare of the consumers.

In view of the foregoing, the passage of this bill is earnestly sought.



FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 1418

Introduced by Representative Susan A. Yap

AN ACT
TO ESTABLISH THE REGULATORY FRAMEWORK FOR THE SAFE OPERATIONS
OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, PROVIDE
ADDITIONAL POWERS TO THE DEPARTMENT OF ENERGY, DEFINE AND
PENALIZE CERTAIN ACTS, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled.

CHAPTER I
GENERAL PROVISIONS

SECTION 1, Title, -‘Vhis Act shall be known as the "LPG Industry Regulation and Safty Act of
2010."

SEC. 2. Declaration of Policy. - Ie shall be the policy of che State to establish a regulatory
framework for the refining, importation, refilling, re-qualification, distribution, and marketing
processes of the Liquefied Petroleum C after referred to as "LPG") industry to promote the
general welfare, encourage the establishment of standards of conduct and codes of practice for LPG
businesses, and to ultimately address the quality and safety concerns under a deregulated
downstream oil industry steucture. Consequently, the State shall rationalize all applicable laws and
executive issuances on the LPG industry to strengthen and enhance existing mechanisms against
hazards to health and safety, and deceptive and unconscionable trade acts and practices within the
industry. To this end, the State shall undertake the implementation of this Act primarily through the
Department of Energy, in coordination with the Department of ‘Trade and Industry, the
Department of Justice, the Department of Interior and Local Government, and other appropriate
government agencies and instrumentalities

SEC. 3. Construction and Interpretation Clause. ~ Any doubts in the interpretation of any
provision in this Act shall be’ interpreted in favor of the interests of the consumer particularly to
ensure the safety of consumers and the general public.

SEC. 4. Definition of Terms. ~ For the purposes of this Act, the following terms are herein
below defined

(a) "DENR" shall refer to the Department of Environment and Natural Resources;
0) "DILG" shall refer to the Department of Interior and Local Government;
"DOR" shall refer to the Department of Energy
'DOST" shall refer to the Department of Science and Technology;
(c) "DIT" shall refer to the Department of Trade and Industry

(8 "LGU" and "LG

respectively:

shall refer to a local government unit of local government units,


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(g) "PNP" shal refer to the Philipp al Police:

sy "SEC" shall refer to the Securities and Exchange Commission;

“Accreditation” shall refer to the formal recognition given by DTI that a re-qualifier of LPG
oylnden has complied with PNS 17025:2000, “General Requirements for the Competence of
Testing ‘and Calibragon Laboratories," and PNS 03: inders for Liquefied Petroleum
Gas," Part 2 - "Methd of Re-qualification;"

§) "Ancillary Fgrdpment" shail zefer to such equpment, parts, and other devices necessary
and indispensable fof the safe and proper operation of an LPG system such as, but not limited to,
valves, hoses, and regulators;

(k) "Brand Oijrer" shall refer to a person, natural or juridical, owning the brand, name, logo,
color, mark, and/or distinction as registered DIE

(1) "Bull Conner” shall refer to any person or entity whose regular use or consumption of
LPG is limired to itsfown use and requires bulk storage of LPG at a volume as may be determined
by DOE; 7

()" Bulle Loder" shall refer to any person or entity, which engages in transportation and
caruge of LPG inflarge quantities in barges, mil or road tankers, bullet trucks and similar
transportation facilities;

‘n) "Bulk Supplier” shall refer to any person who engages in the sale or distribution of LPG in

such large quantities.
(0) "Certification" shall refer ~o the written assurance given by DTI that the LPG cylinder has

complied with PNS 03:2000, "Steel Cylinders for L:quefied Petroleum Gas”,
and Part 3 - "Requirement for Repair,”

(p) "Consumer" shall refer to any person who purchases LPG for one's own consumption;

(@) "Cross Filjng” shall refer to the filling of cylinders by a person other than by the brand

', Part 1 - "Specification"

owner;
© "Cplindsr"W>e "LPG Cylinder” shall refer co any portable pressure-vessel or container for
LPG, designed for tH transportation and storage of LPG;

(8) "Cylinder Industry Participants" shall refer 10 persons or entities engaged in activities or
businesses related td the manufacture, importation, transportation, sale and distribution of LPG
cylinders and ancillaty equipment, including but not limited to, cylinder and ancillary equipment
manufacturers and ithporters, re-qualifiers, repairers, scrapping centers, cylinder seal manufacturers
and such other;

(® "Glinder Owner" shall refer to the owner of the cylinder as shown by the brand, mark,
trade name or business name embossed or engraved or otherwise permanently indicated on the
cylinder in the mannée prescribed by the DTT and the DOE:

(u) "Cylinder Goapping” shall refer to the industry practice of exchanging ILPG cylinders;

(8) "Defetive Blinder” shal! refer to damaged. unsafe and dilapidated cylinders due to corrosion
or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar defects that render the cylinder
unsafe for distribution in accordance with the guidelines set by the DTI, thus creating a substantial
tisk of injury to the public;

(w) "Dealer" shall refer to any person involved in the sale or trading of LPG cylinders to
coosumers and/or retail outlets:

(s) "Hauler" Shall refer to any person involved in the distribution and delivery of LPG in
cyhnders from one pice to another, whether engaged in such activity for purposes of directly selling
to consumers or oth@Fwis

() "Ppporterfshall refer to any person engaged in the importation of LPG whether for
Procesriigaagle o: offh use;

oi sdustry Participants" shall refer to persons o: entities engaged in activities or businesses
related to’ tHe manufacture, importation, transportation, distribution or sale of LPG, including,
among others, Cylinder Industry Participants and LPG Ins icipants as defined in this Act;

(@2)"LPG'~ shall refer to liquefied petroleum gas, which consists of commercial propane gas
or'commercial. butane gas or a mixture of the two gases, with properties conforming to the
standards set forth in the PNS. i

try P,



(bb) “LPG Industry Partripants” shall refer to persons or entities engaged in activities or
businesses related to the manufacture, importation, transportation, sale and distribution of LPG,
including but not limited to LPG refiners, LPG importers, re-fillers; piped LPG providers, haulers,
dealers, service stations, retail outlets and seal manufacturers;

«)" Marketer shall refer to any person, whether natural or juridical, engaged in the sale of
LPG, whether in bulf or retail;

(ad) [Peon products” shall refer to the products formed in the course of refining crude
petroleum through Qistillation, cracking, solvent refining and chemical treatment coming out as
primary stocks from/fhe refinery such as but nor limited 10 LPG,
naphtha, gasoline, sdlvént, kerosene, aviation fuels, oils, waxes and petrolatum, asphalts, bitumen,
coke and refinery sludge, or such refinery petroleum fractions which haire not undergone any
process or uealment as t produce separate chemically-defined compounds in a pure or
commercially pure state and to which various substances may have been added to render them
uitable for particular uses, provided that the resultant product contains not less than fifty percent

¥/4) by weight of such petroleum products;

(ce) "Philippine National Standards" ox "P'S" shall refer to the standard promulgated by the
Bureau of Product Standards (BPS) of the DTI relating to product specifications, test methods,
terminologies and standardization procedures, guidelines or practices,

(€) "Piped LPG Provider" shall refer to any person engaged in the business of supplying or
disttibuting LPG to consumers through. a pipeline system, including operators of central storage
compounds for at PG oF reticulated system facilities;

(eg) "Pipelin§ Syste" shall refer to 4 newwork of pipes or similar conduits used for the
conveyance Bf LPG rom the piped LPG provider to consumers;

(hh) "Primary Storage Facilities” shall refer to the plant, depot, equipment and other attendant
facilities, such as uniderground caverns, refrigerated tanks, and pressurized | steel tanks, used for
storage of LPG;

(i) “mie 6 Serviceman" shall refer to an individual who has been trained, qualified and
certified by the DOE or any deputized agency thereof, or to an individual who has successfully
completed an approved training course for [LPG servicemen in a training schoo! duly recognized and
accredited by the Philippine government;

i) "Refer" shall refer to (1) a service provi
6ylindets on the latter's behalf, or (2) any person or entity who refills LPG into one’s own cylinders;

(kk) "Refilling Plant" shall refer to any installation that is used for refilling LPG into cylinders
and has LPG bulk storage and refilling facilities therefore;

() ""Refiner" shall refer to any person who refines LPG through distillation, conversion and
treatment of grude oil and other naturally occurring petroleum hydrocarbons;

(mm) "Re qualification" shall refer to the method or procedure by which a cylinder is
subjected to inspectfon and reevaluation by DI in accordance with the specifications set forth in
the PNS 03-2000,M'Steel Cylinders for Liquefied Petroleum Gas," Part 2 - Method of Re-
quilification}to detefinine its acceptability for continuous use and distribution and_ subsequent repair
oor sezappage, wherelappropriate;”

(an) "Resqualifier" shall refer to any person duly accredited by the DT] pursuance to this Act to
engage in the business of re-qualifying LPG

(oo) "Repair" shall refer to the removal and replacement of parts ot attachments of LPG
cylinders or the a of any other necessary corrective and restorative measutes pursuant to
the PNS, to restore fhe fitness of LPG cylinders for refilling and distaibution;

(pp); "Repairfy” shall refer to any person or entity duly certified by the DTI to engage in the
business of fepaitingfLPG cylinders;

(qq)""Retail Outi” shall refer to any
quantities as may be determined by the DO

(rp)"Reticulated System" shall refer to 2 means of supplying LPG through a pipeline network
from a centralized cylinder bank or bulk installaion to multiple customers situated in a common
locality:" 5

er authorized by a cylinder owner to refill

ty that sells LPG cylinders directly toa consumer in

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(ss) "“Surappage" shal? refer to the destruction of defective LPG cylinders declared by a re:
or the DTI to be unfit for use;
(e) "“Sorpping Center” shall refer to any person oF entity engaged in the business of disposing
defective LPG cylinders;

(au) "Sea" shall refer to the protective cover placed on the valve of an LPG cylinder;

(vv) "Servite Station "shall refer to a retail establishment engaged in the business of selling
LPG in cylinders as a retail outlet and in distributing and dispensing of LPG to consumers for
automotive use. It shall be deemed a dealer or retail outlet for purposes of this Act; and

(w)}"Tare weight” shall refer co the net weight of the LPG cylinder excluding its contents, as
engraved ia jthe collgr and painted in the body thereof and shall be expressed in kilograms in
accordance ith the (becifications as may be prescribed by the DTL

qualific

CHAPTERIL
IMPLEMENTING AGENCIES

'
C. 5. Lead Agency. - Unless expressly stated in this Act that a particular function shall be
the sesponsibility of another government agency, the DOK shall be the primary government agency
responsible for the implementation and enforcement of this Act. The DOF. shall supervise and
monitor the LPG industry and its participants to ensure compliance with national product quality,
environmental and worker safety, and consumer welfare standards,

SEC. 6, Additional Powers and Functions of the DOE Secrtay. ~ In. connection with the
enforcement of this Act and in addition to his/her powers and functions under existing laws, the
DOE: Secretary shall have the’ following powers and functions:

(@) Administag and supervise the enforcement and implementation of this Act, including the
promulgation of Implementing Rules and Regulations, and issuance, from time to time, of other
regulations, grders on cixculars necessary to implement this Act,

(b) Formulae and implement policies, programs and regulations on the LPG industry,
including the impoftation, exportation, stockpiling, storage, shipping, transportation, refining,
processing, marketing ahd distribution of LPG, whether distributed in cylinders, through pipelines
or other means, to ensure that product quality, environmental and worker safety, and consumer
welfare standards are met;

(© Inspect and evaluate LPG and LPG cylinders in circulation, at any time from and after its
purchase by a refiner, marketer, or refill ind while it is in circulation or intended for distribution
«othe public, for purposes of determining conformity to established quality and safety standards for
LPG cylinders developed and established by the Bureau of Product Standards (BPS);

(@) Establish safety standards for refilling plants, depots, storage areas, transportation and
other facilities of LPG industry players and inspect and evaluate refilling plants, depots, storage
areas, transportation and other facilites or business premises of LPG Industry Participants to en:
compliance to safety standards;

{e) Direct LPG brand owners, refillers, dealers and retail outlets to periodically submit
cylinders for requalification, and to secure proper proof of compliance therewith in accordance with
the requirements of DTI;

6 a sols propio or upon report of any person, possible infractions of this Act by

industry par ano initiate the necessary actions warranted under the circumstances, including
the recall, prohibitiGh, forfeiture or seizure of substandard LPG and LPG cylinders as well as
illegally filed LPG eylinders as defined in Chapter VI of this Act, the filing of charges with. the
proper ‘court or government agency, and the enforcement of administrative sanctions as provided
under this Acts x, 7

@ Recommifad:to the concerned LGUs the suspension or revocation of the busin

permits or ligenses of LPG industry participants who violate the provisions of this Act;



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{h) Issue Standasds Compliance Ceenti
with Chapter ITI of this Act, and to revoke the s:

ii) Impose and collect admimsteative fines for violation of this Code, as well as fees or
similar chatges for its setvices, including the processing of applications for Standards Compliance
Certificate and collection of administrative fines for violations of this Act;

@) Create and maintain 9 central database of industry participants, and an inventory of
existing and projected LPG supply levels in the sy, which shall be updated monthly through its
own initianve and through reports of LPG industry participants;

(&) lnvestigate and keep a record of incidents of injury or damage to person or property,
caused by on attributdble to the improper production, storage, handling or use of LPG for purposes
4g or filigg the appropriate inst responsible persons;

@ Fetablish kind develop research a ns 10 develop new uses for LPG,
promote improved and innovative methods and rechnologies for safe and efficient production,
stage, handling or yse of LPG, and te

(om) Consult dad coordinate, on a regular basis, wath LPG industry participants, assocsaions
and consumers in furtherance of the objectives of this Act;

es to LPG industry participants in accordance

(n) Coordinate with other government agencies, bodies and instramentalities to ensure the
effective implementation of this Act, which shall include the power to depntize other agencies ro
assist the DOE, ia implementing its mandate under this Act,

(Q) Exercise such other powers and functons as may be necessary or incidental to attaining
the objectives of this Act, and

(p) Investigate, prosecute, and Impose penalties for dumping activities or unauthorized
filling of bulk tanks installed in industrial LPG consumes by bulk suppliers other than the owner of
thewaks

i

SUCHET. Powys and Pinction
exclusive powers andfunctions:

{a} Develop, formulate, promulgate, review and revise the PNS for LPG, LPG eylinders, and
other ancillary equiprient;

(b) Igspect add evaluate LPG cylinders, whether manufactured locally or imported, prior to
any sile or distribution to LPG refiners or re-fillers, and certify to their conformity to PNS and their
fitness for public sale and disiribution;

(©) Inspect and evaluate ancillary equipment, whether manufactured locally or imported and
certify to thei confosmity to PNS and their fitness for public sale and distribution

(@) Grant acéreditation and certification of conformity to PNS to re qualifiers, repairers,
sctapping cénters, eflinder and seal manufacturers and other independent, competent, private
persons, and entities that provide products and se-vices ro ensure compliaace by industry p:
with the PNS for LPG eylinders and ancillary equipment, in accordance with Chapter IIT of d
the same; and

(©) Extend all necessary assistance to the DOE in the implementation of measures in
furtherance of the objectives of this Act.

f DT! ~ Under this Act, the DTI shall have the following

‘icipant
s Act,

SEC. 8. Powers and Prmetions of DILG. - Cader this Act, the DILG shall have the following
poswers and finetions
{@) Cpordinate with LGUs and the PNP

Act, and of the order, rales, regulations and
for the suspension E ‘ocation of business pe
to be in violation of this Act;

()) Coordinaie with the DOE and the DiI in the dissemination of information relevant to
the implemeatation aif this Act, particularly to the LGUs and the PNP; and

(6) Bxtend alfinetessary as
dn furtherance of this Act.

the orderly and effective implementation of this
vices pursuant thereto, including recommendations
licenses of LPG industry participants found

cance (0 the DOE with respect to the enforcement of measures

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SEC. 9. Pons and Punctio ant to their powers provided by law
especially under Republic Act No. 7160, otherwise known as the Local Government Code, or, upon
aecommendation of the DOE, and upon due notes and heating, shall have the power to suspend or
revoke the business permit of license of any PG industry participant within their respective areas of
jurisdiction for violation of the provisions of this \cr Promd-d. Thar upon notice by the DOE. of.
revocation of che Standards. Compliance Certifieare of an LPG industey parucipant issued by the
DOE under Chapter TH of this Act, che LGU shall immediately revoke the business permit ot
license of said LPG industry participant.

af LGUs - LGUs,

In case of conflict between the decision the DOR and the LGU involving matters,
especially violations, covered by this Act, the decision of the DOE shall prevail

SEC. 10. Teehprica’ Working Group. - The DOE shall be authorized to convene a Technical
, Group to ssist the DOE. in the thorough review and evaluation of the rules and
segulations, policies, Safety standards and PNS affecting the LPG industry. The Technical Working
Group shall be comppsed of not less than ten (10) or more than fifteen (15) representatives of the
pertinent implementig government agencies and the private sector particularly industry participants
and consumer groups. Private sector represen

determined and appointed by the

nm the Technical Working Group shall be

CHAPTER TH
§ MONITORING AND ENFORCEMENT MECHANISMS

t

LL. Onnerbip of 1.PG-Cylinders. - The provisions of the Civil Code to the contrary
notwithstanding, the brand owaer whose permanent mark appears on the LPG cylinder shall be
presumed the owner thereof, irrespective of the party in custody or possession of the cylinder, and
regardless of whether or not such cylinder is or continues to be properly marked, stamped or
identified to contain its LPG brand, or whether or aot

ich cylinder is in compliance with or
rd prescribed under law or by the DTI
equivocal proof or indication thar such cylinder

finer or importer to an untelated thisd party

continues to comply with any other product or quality standa
pausuant to this Act, unless otherwise there 1s anv

vas sold, alienated, of otherwise di
under a written instrument,

‘The brand owher shall, through its authorized dealer or outlet, refund the amount indicated
in the deposit slip or Keceipt shen the consumer returns the cylinder. The brand owner shall have
the obligation to ensufe that its cylinders comply with all required quality and safety standards and
specifications | before theg are released for distribution: Provided, ‘That receipt by the DOE of a
verified noneé or repart fom the brand owner rear olen or missing LPG «sliders
shall prima jack relievethe cylinder owner of the obligation to ensure the quality and safety of such
LPG eylinders. Such report may be rebutted by con

ary evidence.

SEC. 12. Undertaking to Comply with Requirements. - Any person or entity who intends to engage
in any business or activity which shall render it an .adustey participant as defined in this Act, shall
undertake to comply with the requirements of this ct, its implementing rules, and regulations, and
such other issuances bf the DOE, under a verified instrument to be executed in such form as
required by the DOF,£Due filing of the verified undertaking shall be a.condition precedent for the
assuiance of the Standagds Compliance Certificate required under this Act: Prisided, That submission
of such undertaking dées not exempt such person or entity from securing any other certification of
quality, health! safety, Security, or environmental clearance from the proper governmental agencies
or instramentalities as re be provided by other laws.

Any pérson or'entity intending to import or export LPG or LPG cylinders shall, in addition
tw the requirement for a verified undertaking, furnish a report to the DOE prior to every

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impurtation oF exportation: Proves all TPG at
accordance with the law, including international

nd 1PG eslinder importations shall be in
ments to which the Philippinés is a signatory

yes f DOR- The DOE, as the case may be, shall have the power
and authority co require industry part written, electronic or other form of reports
or disclosures, as the DOE, may deem reasonable and necessary to perform their functions under
this \et. Any industey participant who & wy such report of disclosure within che period
and in the manner prescribed by the DOE shall be penalized under Section 35 of this Act.

SEQ 13. Reports and Di

ints to subm

SEC. 14. Central Database of Industry Participants
parucipants shall include their corporate or b
tticers; principal office or bustness addres
name or logo for LPG, LPG cylinder, facilitie
cylinder seal manufacnurers; violations comn

hase of LPG industry
of all directors and

The central data

‘ss name or trade
rpose or nature of business; zegistered brand
1d equipment; haulers, dealers, retal outlets and
d or incidents relating to! such violations, if aay;

agreements with other industey paricipants, such as for cross-filling and similar arrangements; list

oflost, stolen or missing LPG cylinders; and such other relevant information as may be determined

by the DOE. The central database shall be created b the DOE within one (1) year from the

cflectiviny of this Act. This cenwal database shall be updated on a monthly basis and shall be made

available to the public and through the Internet subject to reasonable fees and charges and during
ice hours,

of

SEQ, 15. Standards Compliance
{a) Requirement Psior to Engaging in Busness. - Any person or entity intending to engage in
> involving LPG, LPG cylinders or aneillary equipment or in any activity that shall reader it
an industry Participaat as detined in this Act shall secure its Standards Compliance Certificate from
the DOE. prior to ¢onimencement of commercial operations and annually thereafter. For those
subject ro Section 7°(b}, (c), and (d) which requires an accreditation or certificate of conformity to
PN issued by the DTT, submission of the such accreditation or certificate of conformity shall be a
cement prior to the issuance of a Standards Compliance Certificate by the DOE,

busin

req

For purposes of this Act, the Standards Compliance
ot entity has complied with the safety rules and regulacons prescribed by the DOE and other
pertinent government agencies; Provided, thar such other endorsements by other government
agencies applicable to the particular classification of the industry participant as defined and stated in
this Act shall have been fully complied with: Pred fiatber, Vhaz, a brand owner shall be responsible
for the following:

1) proper mannfacture, maintenance, 3
release thereof to the public, in accordance wi
2) proper filling of cylinders;

3) assurance that 1.PG is readily available at his refilling plant/s for refilling sv his own
evlinders: and

4 ceiling ‘oGhis own cylinders, unless authorized by another brand owner.

stificate shall certify that such person

1d re-qualification of all its cylinders prior to the
this Act;

No ‘industry, participant shall engage in business without first having duly secured a
Staridards Complianée Certificate. Any industry participant that subsequently engages in an activity
or business involving EPG o: LPG cylinders cutside of the scope of its Standards Compliance
Certificate shall duly notify the DOE and secure the proper $ ndards Compliance Certificate from
the 1JOE for the said new activity or business, where deemed necessary by the DOE

The DOE, shall preseribe specific gundelines for compliance of eetail oudets, dealers and
haulers in echnote aréas outside Metro Manila, in whi

eved

care the verified undertaking required undcs
nail, without prejudice 10 the conduct of a

this Chapter may be submitted through regi
standards compliance inspection.



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(b) Persons or Entities Already Engaged in LPG Business. - Subject to the provisions of
Scetion 31 f this Act, "any industry participant already legally engaged in business upon effectivity
of this Actishall obtain a Standards Compliance Certificate prior to the renewal of its business
license and annually thereafter, in accordance wit the rules, regulations, and guidelines issued by the
DOE

(6) Bulk Consumers, - A bulk consumer shall be required to secure a Standards Compliance
Certificate from the DOE. prior to its storage of |.PG, and annually thereafter prior to its renewal of
business permit: Provided, That if the bulk consumer has secured a similar certificate (rom the
Department of Labpr and Employment (DOI!) and the Bureau of Fire Protection (BFP), such
certificate fom these agencies shall be deemed substantive compliance under this Act.

() Required Submissions for Standards Compliance Certificate, - A Standards Complisiice
Certificate shall only be issued upon a satisfactory finding of the applicant's compliance witl: the
provisions of this Act/and submission of requirements, which may include the following, where
applicable:

1) ister i of compliance ot applicant's facilities with fire safety laws and regulations

fiom the Bureau of Fire Protection (BEP);

2) Environmental Compliance Certificate (FCC) from the DENR;

3) Product liability insurance’ cestiticate from an insurer duly registered with and licensed by
the Insurance Commission;

4) Permits on suitability,
existing operation;

5) Compliance with the provisions of Republic Act No. 9514, otherwise known as the
Revised Fire Code of the Philippines of 2008 , and/or pamphlet 58 of the National Fire Protection
Association (NFPA 58), otherwise known as the "Liquefied Petroleum Gas Code" and

6) Accreditation or certificate of conformity 10 PNS issued by DTI as provided under
Section 7 (b), (©) and (€) of this Act.
7) Sueh ca documents or requirements as the DOF. may prescribe as necessary for the

afety and soundness of plant and facilities for the proposed or

effective implemenfticn of this Act.

(©) Renewal and Posting of Standards Compliance Certificate, - The Standards Compliance
Certificate shall be renewed annually and shall be prominently posted ot displayed in a. public
wecessible and conspicuous area within the business premises of the industry participant

;

SEG, 16, Cettifcate of Accreditation jor Manifactuers, Re quaiiers, Repairers of LPG Cylinders and
Chitner SeabManufadpurys - Prior to the commencement of its operations and annually thereafter, any
person whd inven td engage in the business of man Wg. te-qualifving, of repairing LPG
cylinders, stall obtain a Certificate of Accreditanon from the DTI prior to the commencement of irs
operations and annually thereafter.

Any person already engaged in the business of re-qualification, repaie, scrappage or cylinder
and seal manufacturing upon the effectivity of this Act shall apply for a Certificate of Accteditation
from the DTI prior to the renewal of its business permit

°.17. Monitoring and Standards Compliance Inspection.
(a) Monttofing of Facilities and Equipment. - The DOE shall monitor the refining,
inepottaciod and distribution of LPG and conduct annual inspections of refinery, storage, hauling,
transportation, refilling, or installation facilities and equipment to ensure that clean, environmentally.
safe and w¢zker-beBigit technologies are appliec, and to ensure conformity with quality and safety
standards and-other mandatory requirements uncer this Act.

q f -



0

(b) Standards Compliance Inspection. ‘The DO!
Certiticar

hall not issue a Standards Compliance
pnless iis shown, upon proper conduct of standards compliance inspection, that the
industry papticipani has complied with this Acc and such other rules and regulations as may be
prescribed by the DOE,

(9 Frequency of Standards Compliance Inspection. - The DOE may, motu propio or upon a
verified starement or complaint by any person, conduct regular or random inspections of the
refinery, storage, Jhauling, transportation or installation facilities and equipment of industry
participants as it méy deem reasonable and necessary to implement the purposes of this Act.

{d) Conduct of Standards Compliance Inspection. - The DOE shalll prescribe guidelines for
the proper conduct of the standards compliance :nspection, including but not limited to the scupe of
the relevant premises and records as may be subject to inspection.

(© Power to Deputize. - The DOE may deputize such government agencies it deems
ary (© assist its functions as provided in this Section.

nei

SEC. 18, Requirement for Business Permit, - ‘The Standards Compliance Certificate provided
under Section 15 of this Act shall be a mandatory requirement for the grant ot renewal of any local
government licens or permit to engage in business involving LPG, LPG cylinders, ot ancillary
pele of whether such products or activities constitute the entire or a portion of the

business foF which 4 Dfsiness license is sought by the applicant,
' ‘

SEO: 19. Isihanee of Receipts

@¥ ‘tansactjons in Bulk.- All transactions involving the sale or transfer of LPG in bulk must
be covered|by a form bearing, in’addition to other requirements under applicable laws, the following

1) registered name of the seller;

2) address of the seller;

3) date of the transaction;

4) quantity dx volume of the product;

5) plate nurhber of transporting trucks or repistered name of transporting barge;

6) serial/ tracking no. of brand owner

7) total price of the transaction; and

8) such other information as may be prescribed by the DOF. with the concurrence of
affected industry players.

(0) Transactions in Cylinders. - All transactions involving the sale’or transfer of LPG from
dealers to retail oh and to direct consumers must be covered by an official receipt or sales

invoice bearing, in ifldition to other requirements under applicable laws, the following information:
1) registered name of the seller;
2a ren lp ce
3) date of tile dlarisdetion;
4) brand of LPG;
serial /uagkidg nd. of brand owner
6) ret weight ot weight of the LPG contained in the cylinder;
7) uinit priceéper cylinder:
8) total price of the transaction; and
9) such other information as may be required by the DOR.

All other transactions involving the sale or transfer of possession or ownership of LPG from
one industry participant to another must likewise be covered by an official receipt or other written
instrument hearing the above information, as applicable.

SEG. 20. Dielaration of LPG Cylinder as Iriurions, Unsaje ox Dangerous. - When the DOE. finds,
‘motu propio or-upomt petition of any person, that an LPG cylinder is defective and hence, possibly
injurious, unsafe or dangerous, itshall, after due notice and hearing, issue the appropriate order for

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its versal caliph recall, seizure, impoundment or prohibition’ from public sale or
disenbution® Provided, That, in the sound discretion of the DOE. it may declare an LPG cylinder to be
imminently injurious, unsafe or dangerous, and order its immediate recall, seizure and
impoundment, in “fs ease the cylinder owner shall be afforded a hearing, within forty-eight (48)

hours from fssuaneé| of such order, for the purpose of determining the propriety of the recall and
seizure of the cylinders: Provided, fintler, ‘That such a declaration shall be limited to instances when
the cylinder is already filled and already sealed inside a refilling plant; dealer's showroom; retail
outlets: and /or evlinder transporter.

Bor cases initiated sofw propio by the DOL, it shall make a final determination of whether an
LPG cylinder is injurjous, unsafe or dangerous within thirty G0) days from termination of
administrative procledings: Provided, fintler, That in the absence of such determination upon
espitation of the peflog therefor, the DOE shall thereafter release custody of the LPG cylinders to
the industryfpatticipiingin custody thereof prior to the order for recall, impoundment or prohibition
from publicbale or disthibution,

SEC 21, Probedlre for Petition for Declaration of LPG Cylinder as Injurious, Unsafe or Dangerons
Any tnteresied person may, upon payment of the appropriate filing fee prescribed by the DOR,
peution the DOE foe an order declaring an LPG cylinder injurious, dangerous or unsafe. In case the
DOE, acting on sugh petition or on its own initiative and upon due notice and hearing, determines
an LPG cylinder to'Belinjurious, dangerous or unsafe, it shall so notify the cylinder owner of such
finding and Order the recall, prohibition or seizure of the LPG cylinder.

SEC: 22. Reilly Seize, Impoundnent and Probibition of Defectie LPG Cplinders. The order for
recill, seizure, impoundment of prohibition issued by the DOE shall contain a prohibition against
the refilling, sale or distribution of the recalled or banned cylinder. The cylinder owner against whom

the order for recall, prohibition or seizure ts issued shall be required to subject the recalled, banned
or svized LPG cylid if re
on Where repair oF re-qualific:

ion processes to tender the same compliant with
appropriate P2 ion is not possible or practicable, to present proof
eat Ha

5
fe Giese against whom the order for recall, seizure or prohibition is issued may
petition forthe revdéation of the order. The DOE shall revoke the order for recall, prohibition or
seizure upog.a findiilg thar the subject LPG cylinder has been repaired or otherwise made compliant
with the required PXISgor has been replaced with a like or equivalent cylinder which conforms with
the sepeppe PN:

The eylinder owner shall not charge a consumer who avails of the remedy as provided above
afany expenses or costs that’ may be incurred ia the course of repair and re-qualification,

SEC. 23. Disposition of Recalled, Banned or Seized Cylinders. - The DOE shall formulate rules for
the disposition of recalled, banned or seized cylinders: Provided, ‘That it shall initially adopt and
caforce the rules for disposition of recalled, banned or seized cylinders established by the Dl;
Provided further, That it may amend the same when it deems necessary.

SEC. 24, Weighing Devices
(2) Calibrated afd Scaled Weighing Devices Required in Premises, - All refiners, importers,
refillers, mf dedfer§, and retail outlets shall maintain, at all times, in all their establishments or

outlets and ithin eh Miles areas accessible to the public, suitable weighing devices duly calibrated
anbually and sealed By the City or Municipal Treasurer, the DOST, or any other government agency
authorized tw officially calibrate the same. ‘The weighing devices shall accurately measure LPG
cylinders upito-one-tengs (0.1) of one kilogram

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to being placed in the gles areas and also i the presence of the customers prior to sale, to afford
the latter an oppornunify to verify the correctness of the weight of the cylinders and the LPG
contents theeeof,

SEC. 25. CylindaiSeatir
conform to the specifigations of the DOE!
concerned brand owners,

AILLPG evlinders shall be provided with scals after filling, which
That the DOR, after consultation with the
ications: Provided, finther, That the cylinder owner
and its authorized refiller s| ensuring that LPG cylinders are properly
sealed before the eylinders leave che filling or reilling plants: Prwided, final, That LPG cylinders
with tampered of broken seals shall not be sold or distributed.

() Checking off LPG Cylinder Content by Dealers, Retail Outlets and Haulers. — All
Gealers, retail outlets an@ haulers that sell direeth to consumers, shall seige the LPG cylinders prior

Cyknder seal manufaceurers shall not sell seals of LPG brand owner to any other brand
owner, unless allowed by both the brand owner stselt and the DOE. Seals are to be registered with

the DOR.
SEC. 26. = for LPG Cylinders. ~ LPG cylinders shall comply with labeling

s of the PN§, with the labeling requirement provided under this Section and as may be

‘or LPG @ylinder Collar. -

) All LPG cylinders, whether manufactured locally or
innported, shall have che

lowing embossed or stamped on the cylinder collar:

» ie met registered trade name or brand name, trademark and business name;
Por pa Jers, the name and address of the importer in the Philippines;

3 Philippine Si ad or Import Commodity Clearance certification marks, as applicable;

4) Specific standard useds

5) Date of i or re-qualification;

6) ine if

7) Cylinder waite

8) ‘Tare weight;

9) Design and test pressure; and

10) Serial number.

if

The above requirements shall form an
being crased or detached under ordinary bandli

rt of the cylinder collar, without danger of

(b) For LPG Cy!
shall bear the followings

der Body. - AI LPG cylinders, whether manufactured locally or imported,

2) A color which!
3) Tare weight; a
4) Net weight

isunguishes the brand owner of the LPG it contains;

‘The brand nate,
form an inte;
ordinary

le name or trademark of che LPG product shall be embossed and shall
body of the cylinder, without danger of being ctased or detached under

SEC. 27, Delivery Vehicles, Drivers and Atteudants. — AML trucks and other vehicles used for
transporting aad delivering LPG cylinders shall be open and the same shall be registered with the
DOF, in accordance with the. guidelines to be promulgated by the DOE, in consultation with the
industry participants and other concerned agencies. A haulers shall display on their delivery trucks
or vehicles a prominent DOE signage. Failure to register the delivery vehicle shall give rise to a
presumption that the vehicle is not duly authorized ro transport LPG

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Vehicles not registered and without the appropriate DOE signage shall be seized or
impounded hy the DOI ion of drivers and attendants for LPG delivery
‘ehicles shall be prescribed by the DOE. upon p:ior consultation with the industry patticipants and
other concerned government agencies.

uidelines for the accre

SEC. 28, Dies Sales by Hanier. ~ Subject t guidelines and requirements as may be
promulgated by the DOE, haulers who engage in dizect selling of LPG to consumers shall be treated
as dealers for purposes of this Act and shall observe the standards and requirements for dealers
under this Act

SUC. 29. LPG Cylinder Exchange, Swapping and Rehabilitation. - The DOL, in consultation with
the DTI, LPG industry participants, concerned government agencies and other stakeholders, shall
‘ormulate a program and issue the appropriate rules necessary wo govern the practice of exchanging,
swapping and rehabilitation of cylinders in the ade of LPG, including appropriate éanctions for
violation thereof.

‘This Section shall be subject to the following:

1. Cylinder Exchange, Swapping and R
principles and standards

{a) Ensuring the safety of the cylinder for the benefit of the consumer shall be the priority
concerns Provided, that any procedure in the cylin ye, swapping and rehabilitation system,
which may increase sigaificantly the retail costs of a 1.PG cylinder, shall be subject to consultations
‘with Consumer groups and industey participants by the DOE.

(b) No procedure in the eylinder exchange, and rehabilitation system shall be
permitted if it results to unfur trade practices Prat unduly benefits one industry participant over
another

(c) The eylinder exchange, swapping and rehabilitation system shall take into consideration
the following factors

i, ‘The prevailing economic conditons of the LPG industry, including but not limited
to, the supply ef LPG including the levels of import and domestic production Of LPG
adjusted for applicable foreign exchange rates, the demand for LPG including the levels of
household and bull: use, as well as the prevailing prices of LPG, among others,

ii, The number of LPG eylind ncillary equipment, classified into its usability
and cost effectiveness;

iii, ‘The developments in LPG safeyy technology and the energy sector in general;

iv. The statistics and orher information on the level of injuries from LPG. relared
incidents as well as safety compliance by cach and all industry participants;

v. Suich other fitetors that may affcct the viability of the LPG industry particularly on
ats safety and affordability.

piliation shall be governed by the following

1 exchat

swappi

2. fhe DOL. shall conduct a study that will examine the viability and practicality of the
establishment of the practice of cylinder exchange, swapping and rehabilitation between LPG
industry participants. The DOE shall issue a decision based on chis study which shall implement the
mandate stated in this $ This study shall be completed within one bundzed and eighty (180)
days from the effectivity of this Act

ts shall co

3. AILL.PG industry particips
cylinder exchange, swapping and rehabilit
are put in circulation,

pe
Jon programs to €

te with che DOE in the implementation of
sure that only duly qualified cylinders

. CHAPTER IV


QUALITY STANDARDS

30. Provonlgation of Quatity Standard - In order 10 reduce safery risks and operational
hazards, and promote the use of environmenially safe and worker-benign technologies and
processes, industry participants are hereby requised «@ comply with the quality standards established
by the DOE, for the LBG industry consistent with the PNS formulated by the DTI. The quality

standards shall ran , but not be limited to, the following:
(a) Puimary Facilities;
() ¢ Ton ig Plants and Facilities;
(C) BUlk-Loadingy Unloading and Transportation of LPG;

(W) Dealers and Retal Oudets;
(© Service Stations

The DOE, shalliformulate the specific wuidelines for mandatory compliance with the
established quali rls und enforce the apptopriate sanctions for violations thereof Provided,
That the DOE, shalli@oHult the LPG industry participants in the formulation of said standatc
Provided furthe That Rothing in this Chapter will allow licensees for refilling plants, dealers, and
retailers’ to sell ancillary equipment not recommended by the cylinder brand owner: Prarded, finaly,
That the DOE, in formulating the qualicy standards in this Act, when applicable, shall adopt the
Philippine LPG Association safety code and the applicable international safety standards for the
LPG industzy, including, bur not limited to; the Nadonal Fire Protection Association (NFPA) 58,
otherwise known as the liquefied petroleum gas code for LPG.

CHAPTERY,
PROHIBITED ACTS.

Any industry participant
nce-Cerdicate fom the DOE #3
fine of Five Thousand Pesos

a corporation, for each
miided, That the maximum fine to be
1 individual and ‘Ten Million Pesos

(P5,000.00) fot an indiv
day of operation without
imposed shall be Five Million Pesos (:
(P10,000,000.00) for a corporation.

erhicate:
100,000.00} for

32. Engaeing in Business Without Accreditation. - Any person who engages in the business
of manufacturing cylinder seals or of re-qualifying, repairing or scrapping LPG cylinders without
fiust securing "a certificate of accreditation from the DIT] as provided uader this Act, shall be
penalized with a fine of Three Thousand Pesos (P3,000.00) for an individual and Five ‘Thousand
Pesos (P5,000.00) for a corporation, for exch day of operation without a certificate of accreditation:
tthe maximum fine to be imposed shall be Five Million Pesos (P3,000,000.00) for an
en Million Pesos (P10,000,000.00) for a corporation

SEC. 33, Obstnetiih of Inspetion. - Any industry participant who refuses, prevents or obstructs
the inspection of its préfhises and records as provided under Chapter IIL of this Act shall be
penalized with a fine df Three Hundred Thousand Pesos (Php300,000.00) for an individual and Five
Hundked Thowsand Pesos (Php500,000.00) for a corporation, for each instance of violation,

SEC Hill WE Npst Standards Copii
refuses to postiits Stat impliance
sequited by thd DOE; shi be penalized with a fine

Thoustid Pesos (@hp5,000,00)

An industry participant who fails or
< required under Chapter I] of this Act an
ot exceeding Five

for each instance of violation.

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SEC. 35. Fuiligy fo Submit Reportorcal Resnirements. ~ An industry participant who fails to
submit periodic report as may be required by the DOE, within a reasonable period and in the
manner prescribed by fe DOE, shall be penalized with a fine not exceeding Five Thousand Pesos
(Php3,O00.00) for éfich instance of violat

SEC, 36, Hlegal Stone, ~ A refiner, importer, refilles, hauler, dealer, rerail outlet or bulk
consumer who stores LPG in bulk without obraining the Standards Compliance Certificate required
uncer Chapter HIT =f this Act sball, upon conviction, be penalized with a fine of not less than
Tweary ‘Thousand Pesos (Php20,000.00) bur act more than One Hundred Thousand Pesos
(Php 100,000.00}, or imprisonment of at least six (6) months but not more than ewo (2)
both, ar the discretion bf the court: Provided, ‘That the second and subsequent violations shall be
penalized with both fin@and impasonment as provided herein.

1S, OF

SEC. 37. Balhae to Comply with Prdvct Standards. ~ An industry participant who, by act or
omission, fails to comply with plant or product standards set by the DOE with respect to their
specific activity shall, upon conviction, be penalized as follows:

(a) Non-compliance with DOE mandatory requixements on safety designs for refilling
plants, equipment, depots, pipeline systems and similar facilities shall be penalized with a fine of not
less than Fifty ‘Tholfgand Pesos (Php50,000.00) but noc more than One Million Pesos
(Pbpl,000,090.00} ox! if}prisonmene of at least six (6) months but nor more than two (2) years, of
both at the Yiserouch the court: Provided, That nothing in chis paragraph shall preclude the court
from ordering the clostife of the facility until such time thar the mandatory requirements have been
oet

{)) Failure to segure the required PNS Cetificate for LPG eylinders shall be penalized with a
fine of Five Thousand Pesos (Php5,000.00) for an individual or Ten Thousand Pesos (Php
10,000.00) for a corporation, for each non-compliant cylinder used and diseributed to consumers, or
imprisonment of at least six (6) months but not more than two (2) years, or both at the discretion of
ie court: Pride. Thagithe maximum fine to be imposed shall be Five Hundred ‘Thousand Pesos
(Php500,009.00) fo! apy individual and One Million. Pesos. (Phpl,000,000.00) for a corporation:
‘Pranided, further, That the second and subsequent violations shall be penalized with both fine and
imprisonment as provided herein: Prov, fn this section shall not apply unless the cylinder
is in the possession Of an illegal refiller or trader.

SEC. 38. Adilteration, ~ A refiner, importer, refilles, piped gas provider, dealer or retail outler
who mixes LPG with another finished or unfinished petroleum product or stock or with any non
petroleum substance or material that will result in product quality change or in the failure of the
LPG to meet the required product specifications of the DOE, shall, upon conviction, be penalized
with ‘a fine of Ten Thousand Pesos (P10,000.00) for an individual and Twenty ‘Thousand Pesos
corners F482 corporation, for each cylinder containing adulterated LPG, ot

imprisonmebt of at leagljsix: (6) months bur nor more than two (2) years, oF both, at the discretion of
the court: Plowided, Thatfthe second and subsequent violations shall be penalized with both fine and
imprisonment: Provided further, That the m fine tw be imposed shall be Five Hundred
Thousand Pesos (Php500,000.00) for an individual and One Million Pesos (Php 1,00,000.00)
foracorporation. — |p

SEC, 39. Undepfilling, - When the ner quantity of LPG contained in cylinders. sold,
uansferred, jdelivereg or filled by retillers is less than the cylinder content required by the
governmentiat the filling plant, the refiller shall, upon convicuon, be penalized with a fine of Five
Thousand Pesos (Php$,000.00) for an individual and Ten Thousand Pesos (Phpl0,000.00) for a
corporation for each underfilled cylinder or with imprisonment of at least six (6) months but not
more than two (2) years, or both, ar the discretion of the court: Provided, That second and subsequent
violations shaltbe penalized with both fine and imprisonment: Provided, further, That the maximum
fine to be imposed sball be Five Hundred Thousand Pesos (Php300,000.00) for an individual and

atest
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One Million Pesos (Php1,000,000.00) for a corporation. When the net quantity of LPG for sale in
cylinders sold, transferred, delivered or filled by dealers or retail ourlets is less than three tenths of
cone kilogram (0.30 Kg) or the government-required cylinder content quantity, the dealer or retail
outlet shall be penalized with the same fines menuoned eatlier in this paragraph.

A broken, tampered, absent or removed seal shall give rise to a presumption that the
cylinder is undesfilled. \ cylinder containing less than the required LPG quantity which is not so
identified and set apart or taken out from the sales area by dealers or zetail outlets is presumed to be
for sale.

SEC. 40, Ikea! eflting. - ‘The following shall constitute illegal refilling of LPG cylinders
under this Act

(a) Refilling of EPG eylinders by a person or entity other than the rightful owner thereof,
unless specific permissign is granted by the owner for such refilling as evidenced by a written
contract or similar instrument;

(b) Refilling of eplinder with LPG of a brand, trademark, trade name, or registered business
name other than that of the LPG brand owner indicated on the cylinder tank, otherwise called
“pute filling” or “eross- filling”

(6) Refilling of IPG cylinder without embossed .$ oF other indication of the brand ot
unde name thereof, or Bearing defaced, tampered or illegible matkings contrary to the mandatory
labeling and stamping requirements under this Act,

(@) Refilling of LPG cylinder which is due for repair, re-qualification or scrappage as
provided in this Act, or is subject to the recall or prohibition order of the LPG Board;

(¢) Filling direetly from LPG tank wucks without the use of approved filling machines;

(0 Refilling LPG from one cylinder w another without using the prescribed equipment; (g)
Backyard refilling of cylinders other than in properly designed LPG refilling

plants;

0) Filing exlindhes with products or substances other than LPG in an effort to achieve the
correct net weight;

() Any other refilling of LPG evlinders in violation of the mandatory requirements ot
prescribed standards under this act; and
() Unauthorized loading of bulk LPG tanks in industrial accounts. It shall also be prohibited
y marketer, dale retail outlet to knowingly sel! illegally refilled cylinders.

fora.

An industry pafficipant found guilty of illegal refilling under this Section shall, upon
conviction, be penalizedwith « fine of Ten Thousand Pesos (Php10,000.00) for an individual and
Twenty ‘Thousand Pesos (Php20,000.00) for a corporation, for each illegally-tilled cylinder, or
imprisonment of at least six (6) months but not more than wo (2) years, or both, at the discretion of
the court: Provided Thatisecond and subsequent violations shall be penalized with both fine and
imprisonment: Provided, farther, That the maximum fine to be imposed shall be Five Million Pesos.
(Php$,000,000.00) for anfindividual and Ten Million Pesos (Php10,000,000.00) for a corporation

SEC. 41. Unauthorized Trading ofl PG Cylinders. Any industry participant who, without the
consent of the cylinder owner, stores empty LPG cylinders in quantities in excess of those allowed
by the DOE, through cylinder swapping and other similar industry practices, and exchanges, barters,
sells, distributes or otherwise transfers ownership and/or possession thereof to a person or entity
other than the cylinder owner and without the authority of the cylinder owner shall, upon
conviction, be penalizedgwith a fine of Three Thousand Pesos (Php3,000.00) for an individual and
Six Thousand Pesos a Hee for cach illegally stored or sold empry cylinder, or imprisonment
cf at least six (6) month but not more than ewo (2) years, ot both, at the discretion of the court
Provided, ‘That second ft Fae violations shall be penalized with both fine and imprisonment
Provided. fetter That the! masimusn fine to be amposed sball be Three Hundred ‘Thousand Pesos

i


(Php 206,000.00) for an individual and Six Hundred Thousand Pesos (Php600,U00.00) for a
corporations

ur Meh. ~ Any person who tampers, alters, oF
1s such as, bur not limited to, changing the cylinder valve,
1 the cylinder owner shall, upon conviction, be
'bp5,000.00) for an individual and Ten Thousand
Pesos (Phapiii,iG0.00) for a corporation, for each tampered or altered LPG cylinder, or imprisonment
of at least six (6) months ber not more than evo (2) years, or both, at the discretion of the court
Pruvided, That second and subsequent violations shall be penalized with both, fine and imprisonment:
Provided, junthen, That the maximum fine to be imposed shall be Five Million Pesos (Php3,000,000.00)
for an indivigeal and Tea Million Pesos (Php10,000,000.00) for a corporation

se 42, Tania’ LPG: Gilaiders ai

modifies LPG cylinder$ithrough any me:

vepainting, and re-labelig, by any person other
penalized with a fine of Five Thousand Pesos (

SHC. 43. Wega! yPossession of LPG Cylinder Seal - Avy person found in possession of LPG.
cylinder seals, inchudingjthe seals already used in the cylinders without authority from the cylinder
owner or its authorized)refiller shall, upon convicnon, be penalized with a tine of Five Thousand
Pesos (Php5,000.00) forlan individual and Ten Thousand Pesos (Phpl0,000,00) for a corporation, for
cach LPG seal found in its or his posses mprisonment of at Jeast six @) months but sor
more than ewo (2) years, or both, at the discretion of the court: Pmrided, That second and subsequent

tolations shall he penalized with both fine and isonment: Provided, fierther, That the maximum
fine iy be indp osed shalby Vive Mil A00,000.00) for an individual and ‘Pen Millis
Pesos (Phplt,000,000.00) for a corporation.

v0, OF

an Pesos

SEC. 44. Failunt to Comply with Weighing Device Requirements. ~ A refiner, importer, refilier,
dealer or refpil buthit sho fails to comply with the requirements pertaining co weighing devices
ander Chapter 11, shalf} be penalized with a fine of Ten Thousand Pesos (Phpl0,000.00) for an
individual or Twenty Thpuisand Pesos (Php20,000.00) for a corporation,

i

SEGA 48. Ovmrbading. — A hauler who k

nel transports, or permits the loading and
usansportafion of LPG cylinders in quantici cer than the rated capacity of the vehicle or in such
4 manner that endangers the life and safety of us passengers or the public, shall be penalized with a
tine of Twenty ‘Thousand Pesos (Php20,000.00) for an individual and Forty Thousand Pesos
Phps0.000.00) for a e@rporation: Prm Phat the penalties provided herein shall be without
prejuchice to its lay ler other laws for any damage or injury to person or property,

46. Importation of Used or Second-Hand LPG Cylinders.
second-haadhLPG cylinders or contamers shall, upon conviction. Be penalized with a fine of at least
Oue Hunded ‘Thousad Pesos (PRPIVOQU) or Three Thousand Pesos (PhP3,000.00) per
cylinder or container, whichever is highes, and imprisonment of at least six (6) years and one (1) day
ro twelve (12) years

Any person who imports used of

 Perons or Entities, ~ A cylinder manufacturer,
tefiner, importer, refiller, dealer or retail outlet who knowingly sells or distributes LPG or LPG
cylinders or LPG Seals to persons or entities committing any of the prohibited acts provided in this
Act and in such other-issuances or orders to be issued by the DOE, shall upon conviction, be
penalized fol each stile or distribution with a fine of not less than One Hundred Thousand Pesos
(Phpl00,000.00) but not more than Five Hundred Thousand Pesos (Php500,000.00) or
imprisoament of at least six (6) months but not more than two (2) years, or both at the discretion of
the court.

SEC. 48. Piffrage of LPG. - Any person who pilfers LPG, upon conviesion, shall be penalized
silt a fine Gf Oae Million Pesos: (Php!,000 an individual and Two Million Pesos
(Php2,000,000.00) for a Eorporatian or imprison least six (6) months but not more than



46

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two (2) ydass, at the discretion of the court: Privided, That second and subsequent
yiokanons sh: 8 be ob red with both fine and imprisonment: Provided, further, That the maximum
fine t be imposed Shallfbe Five Million Pesos (Php3,000,000.00) for an individual and ‘Ten Million
Pesos (Phpl0,000,000.00) for & corporation.

49. Suspension or Revocation of Business Lvense or Permit. ~The penalties provided herein
shall he wichour prejudice t© the suspension or revocanon of the business license of such person by
the approptiate local goyemment unit, within, the same year for which such business license was

need, | }
SEE. bo Inghsilly of Adminisratice Penal. ‘The OV: ey, in addition to or i liew of the
iustitution oft criininal action in a court of law. ampose an administrative penalty within the range

of Twenty Thousand Pesos (P20,00U.00) up w Five Hundred Thousand Pesos P500,000.00) for
‘each offense in this Chapter and such other violations of this Act.

SEG. 31, "Semke Loree” Penaity. - Any person convicted with finality of violating the
provisions of thif Ace t three (3) consecutive instances shall be perpetually disqualified from
engaging in any activiey i the LPG industry.

basis, publi in 4 nelwSpaper of general circulation, the names of industry players convicted with

Act.

2. Publi in of Persons Convicted of Vinlations of this Act, - The DOK: shall, on a quarterly
finahty of viol ONS: i

SRO) 53. jena by Juridical Enunties, -\f the violation is commited by a corporation,
isaseenn association or other juridical entity, the penalty of imprisonment shall be imposed on
te responsible reg S officers thereof. If the offender is alien, he shall be deported
insmedliately, without further proceedings, after service of sentence.

SEQ. (54. Prusweition Under Separite Lams. Prosecution under this Act shall be without
pesgike 10 any Hability for ‘violation of any provision of the Revised Penal Code, Republic Act No.
9514, otherwise kno) the "Revised Fire Code of the Philippines of 2008," Republic Act No.
5293, orherwide inode d the “Intellectual Property Code of the Philippines,” and other applicable
hows 1 nes provided?in this Chapter shall be 9 Pp ice to any other leyal claims or
damages which any injured party suffers as a result of any of the enumerated prohibited acts under

this Chapter.
Lod

“tity

CHAPTER VI
EDUCATION AND RESEARCH.

wirements for Customers and Eind-wsers. "The DOE and the DTI shall jointly
wndlerake dd iain formation dissemination actives to enhance customer awareness
among ILPG consumers ad ead-users. In addition t0 such educational programs, the DOK and/or
the 111, after consultation with the LPG industry jarticipants, may prescuibe sules and repulatious
in relation to the following:
a Hoe industeial (fr lange end-users, £ signs at storage faciliti
(b) Use’ sin inded, legally-filled and certified LPG cvlinders; and
© Inbrallaio dELPG appliances and devices approved by the DTI: Prod, ‘That such
appliances and devices shall be installed ok by qualified servicemen as provided in this Act,

SEG
Informatio:

. Public Gpformation Campaign. - ‘The DOE, in coordination with the Philippine
gency, thé’ DILG and such other appropriate government agencies, shall jointly
develop and implement 4n effective strategy for she dissemination of information 10 the public
about LPG. i ry and safety



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SEC. 57. Development Research... - The DOU, 1 coordination with che DOST and the D1,
shall conduct study and research for the purpose of developing more efficient methods of providing
safe, clean and hazard-ftee LPG to consumers.

CHAPTER VIL
FINAL PROVISIONS
‘

SEC. 58, Inphoenting Rules and Regulations. Unless otherwise provided in this Act, the DOE,
in consulrgion with the DTI, other appropriate agencies, the LPG industry participants, and
consumer Troup, shall be the: lead agency with the responsibility co formulate and issue the
necessary implementing, rules and regulations within one bundred eighty (180) days from the
effectivity of this Act.

{
SEC. 59, a Phase, In order t
and supervisory mechahisms provided herein,

wide a smooth implementation of the monitoring
the industre participants shall be given @ grace period
of one hundred eighty (180) days from the effectivity of this Act, within which to comply with the
provisions hereof: Prvaided, ‘Vhat during the tansinon period, the industry participants shall continue
to be bourid and made liable under the provisions of existing laws, rules and regulanions not
othenwisd repealed by this Act. Industry participants already legally engaged in business upon the
effectivity of this Act and who are required to secure pliance Certificate prior to the
renewal of their business licenses as provided i Section 15 of this Act, shall not be required to
obtain a Stahidards C si nce Certificate for the duration of the grace period.

Assistance to Public Offa's, - Public officials or othet authotized persons acting
of the DOE, the DTI, the DULG and other concerned
government agencies shall he provided with fice legal assistance, liability insueance and other forms
Of protection and indemnification for all costs and expenses reasonably incurred by such persons, it
connection with any civil or criminal action, swt or proceeding to which they may be or have been
made a pasty by reas of the performance of their functions or duties, unless they are finally

<

or

Standards Cot

» 60, Lega

adjudgediinksuch actioiflor proceeding to be lible for gross negligence or misconduct or grave abuse
of disctet

SEC. 61, Separdbility Clause, - Uf for any reason, any chapter, section or provision of this Act
shull be declared uncosistitutional, illegal or invalid, such parts nor affected thereby shall remain in
full force and effect.

SEG. 62. Replaling Clause. - All laws, decrees, executive orders, proclamations and
adminis cegulaions, or pats chercof inconsistent herewith are hereby repealed or moxie
accordingly

SEC. 63. Lyeetinity Chae ~ Ubis Xe
publeation fa the “y Gazette or in at le:

ake effect after fifteen (15) days after ats
spapers of general circulation.

Approved,

2 coca