Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

16 CONGRESS

First Regular Session

2850

HOUSE BILL NO.

Introduced by HON. FRANZ E. ALVAREZ

EXPLANATORY NOTE

This bill seeks to regulate the establishment, maintenance, or construction of
fuel depots, and warehouses, or storage of other flammable or hazardous chemicals
and substances.

We have witnessed the untold miseries and loss of life and destruction of
property caused by accidental explosion of large quantities of fuel and other
flammable or hazardous chemicals and substances stored in depots and warehouses
or storage places located in urban centers and populated areas and communities.
The Australian experience a few years back proves that even highly industrialized
nations are not spared by such accidents. There has been one particular incident in
the country’s string of accidental gas leaks that sent to hospital close to hundred
students and caused the disruption of classes in the state university.

On the other hand, with the increasing importance of the role played by the
country in economic and political concerns of regional and international significance,
Filipinos can be the subject of reprisals of international terrorist. The apprehension of
international terrorists and confirmed sightings of more notorious terrorists’
personalities in the country make this scenario a scary possibility. Worse, recent
experience has shown that local terrorists are capable of even more serious violence.

Holding hostage the lives of millions of the innocent public living close to these
fuel depots and warehouses or storage places of explosive and hazardous chemicals

and substances are among the means of terrorist in realizing their ends.

Under no circumstances should we allow a life to be placed in jeopardy either
by accident or design.

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

FRANZ E. ALV)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

16" CONGRESS
First Regular Session

2850

HOUSE BILL NO.

Introduced by HON. FRANZ E. ALVAREZ

AN ACT

REGULATING THE MAINTENANCE, ESTABLISHMENT, OR CONSTRUCTION OF
FUEL DEPOTS AND WAREHOUSES, OR STORAGE OF OTHER FLAMMABLE OR
HAZARDOUS CHEMICALS AND SUBTANCES AND FOR OTHER PURPOSES

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

SECTION 1. Statement of Policy- It is the policy of the State to secure the
health and safety of public from the hazards posed by fuel depots and storage of
other flammable or hazardous chemical and substances.

SECTION 2. Coverage.- This Act shall cover all future and existing publicly
and privately-owned fuel depots and warehouses or storage of flammable or
hazardous chemicals and substances. These shall include places or establishments
not normally intended for such storage or deposits but are equally used for the
purpose on a temporary or permanent basis.

‘The movable character of the depot, warehouse or storage shall not remove the
same from the coverage of this Act.

SECTION 3. Location. No such depot, warehouse or storage shall be
maintained, established, or constructed within a dangerous distance from populated
area or ari area classified as residential, Conversely, areas within the same radius
from such depot, warchouse or storage shall not be classified as residential nor shall
actually be used as such, The distance shall vary depending upon the volume and
nature of the stored fuel, substance, or chemical.

SECTION 4. Period of Compliance.- Existing establishments shall have until
five (5) years from the effectivity of this Act to comply with the provisions thereof or
sooner in the event that a suitable relocation site is provided by the government.
However, depending on the time such compliance is carried out, entitlement to one
hundred (100%) tax incentives shall diminish but not less than fifteen (15%) on the
fifth and last year

SECTION 5. Tax Incentives.- Subject to the provisions of the foregoing
section, expenses incurred by existing establishments in compliance with the
provisions of this Act shall be considered deductible expenses for purposes of
taxation. Necessary importations made in compliance thereof shall likewise exempt
existing establishments from import taxes and duties.


For the purposes of this Act, a necessary importation shall cover purchase or
acquisition of materials or equipment which are not manufactured in the country or,
if available, are not in commercial quantity or are not able to meet the requirements
of the user.

SECTION 6. Penal Clause. Violations of the provisions of this Act shall be
punishable with imprisonment of not less than six (6) years and six (6) months, but
not exceeding eight (8) years and shall result in the revocation of the license and
charter of the corporation or entity. Prosecution or conviction under this Act of the
responsible officers of the corporation or entity shall be without prejudice to their
prosecution or conviction for crimes resulting from the violations thereof.

SECTION 7. Implementing Rules.- The Department of Interior an Local
Government, Department of National Defense, Department of Energy, Department of
Environment and Natural Resources, and the Department of Health shall
promulgate the necessary implementing rules and regulations not later than one (1)
month from the effectivity of this Act.

SECTION 8. Separability Clause.- If any provision of this Act is declared
unconstitutional, the same shall not affect the validity of other provisions which are
not otherwise so declared.

SECTION 9. Repealing Clause.- All laws, decrees, orders, rules and
regulations, issuances, or parts thereof contrary to or inconsistent with any of the
provisions of this Act be deemed repealed, amended, or modified accordingly.

SECTION 10. Effectivity.- This Act shall take effect fifteen (15) days following
the completion of its publication in the Official Gazette or in two (2) newspapers of
general circulation.

Approved.