FOURTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
)
Cl
HUG 26
P(, :114
, ,.,
SENATE
P
-------C-O-M-M-ITT-E-E-R-E-P-O-RT-N-O-.-5-6-'7---+f~'
"-,-,".....:'"'l2-''':..IT-'-..''-'----f.!'t~~'-
Submitted by the Committee on Trade and Commerce joint with the Committee on
Energy on
AUG 2 6 2009,.
'
Re: Senate Bill No.
3418 ,prepared by the Committees
Recommending its approval in substitution of Senate Bill Nos. 1029, 1034, 1187 and
2250, taking into consideration House Bill No. 5942 and Senate Resolution No. 889
Sponsors: Senators Roxas and Honasan
Mr. President:
The joint Committees on Trade and Commerce and Energy to which were referred
Senate Bill No. 1029, introduced by Senator Villar, entitled:
"AN ACT
REQUIRING'ALL RETAILERS OF LIQUEFIED PETROLEUM GAS (LPG) TO
HAVE A SCALE OR WEIGHING MACHINE IN THEIR STORES OR
ESTABLISHMENTS AND FOR OTHER PURPOSES";
Senate Bill No. 1034, introduced bY,Senator Villar, entitled:
"AN ACT
PRESCRIBING A UNIFORM OR STANDARD DESIGN FOR THE OUTLET
AND REGULATOR OF THE LIQUEFIED PETROLEUM (LPG) TANKS AND
PROVIDING PENALIT FOR VIOLATION THEREFOR";
'GJAS lr1JJ •
Senate Bill No. 1187, introduced by Senator Roxas, entitled:
"AN ACT
TO ESTABLISH THE MONITORING AND SUPERVISORY FRAMEWORK
FOR THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, PROVIDE
ADDITIONAL POWERS TO THE DEPARTMENT OF ENERGY. DEFINE
AND PENALIZE CERTAIN ACTS";


and Senate Bill No. 2250, introduced by Senator Lapid, entitled:
"AN ACT
REQUIRING ALL RETAILERS OF LIQUEFIED PETROLEUM GAS (LPG) TO
HAVE A DULY-INSPECTED AND ACCURATE WEIGHING SCALE OR
WEIGHING MACHINE IN THEIR STORES OR ESTABLISHMENTS AND
FOR OTHER PURPOSES";
taking into consideration House Bill No. 5942, introduced by Reps. Plaza, Macapagal
Arroyo, Alvarez (A.), et. al. entitled:
"AN ACT
ESTABLISHING THE REGULATORY FRAMEWORK FOR THE LIQUEFIED
PETROLEUM GAS (LPG) ~D RELATED INDUSTRIES,
DEFINING AND PENALIZING CERTAIN PROHIBITED ACTS INVOLVING
LPG AND FOR OTHER PURPOSES"
and Senate Resolution No. 889, introduced by Senator Roxas entitled:
"A RESOLUTION
DIRECTING THE SENATE COMMITTEE ON TRADE AND COMMERCE TO
CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE REPORTED
SHORTAGE IN THE SUPPLY OF LIQUEFIED PETROLEUM GAS (LPG) AND THE
INCREASE IN ITS RETAIL PRICE TO DETERMINE ITS CAUSE AND ENSURE ITS
SUFFICIENT SUPPLY IN THE LOCAL MARKET AND FOR OTHER PURPOSES"
have considered the same and have the honor to report them back to the Senate with the
recommendation that the attached bill, S.B. No.
34 18
,prepared by the
Committees, entitled:
"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";
Chairman
Committee on Trade and Commerce
Member, Committee on Energy
be approved in substitution of S. B. Nos. 1029, 1034, 1187 and 2250 taking into
consider
a
House Bill No. 5942 and Senate Resolution No. 889 with Senators Villar,
Roxas,
ap' ,and Honasan as authors thereof.
GR GORIO B. HONASAN II
C airman
C mmittee on Energy
2


~-
.
S "CHIZ" G. ESCUDERO
~.,~,..lttee on Trade and Commerce
{L---7
mCWffiD J. GORDON
Committee on Trade and Commerce
Committee on Energy
Members:
~
Committee on Trade and Commerce
Commit ee on Energy
'BONG" B. REVILLA, JR.
mmittee on Trade and Commerce
ommittee on Energy
Committee on Energy
ALAN PETER Compaiiero S. CAYETANO
Committee on Trade and Commerce
Committee on Energy
~~RA
Committee on Energy
FRANCIS N. PANGILINAN
BENIGNO S. AQUINO III
Committee on Trade and Commerce
Committee on Trade and CommerJA ~
~~l
p~~kCSON
~RENB.~~
Committee on Energy
Committee on Energy
/
MANU~~ M. LAPID
Committee on Energy
~
kAk~.O{~
MIRIAM D~~NS~!W.GO
Committee on Energy
~~RROYO
Committee on Energy
"Compaiied' PIA S. CAYETANO
Committee on Energy
MANNY VILLAR
Committee on Energy
3


I
MIGUEL F. ZUBIRI
Majority Floor Leader
~:
Ex-Officio Members
AQU' INa Q PIMENTEL, JR.
Min rityFloorLeader
OY EJERCITO ESTRADA
nt Pro-Tempore
HaN. JUAN PONCE ENRILE
Senate President
Senate of the Philippines
Pasay City
4


FOURTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
)
9
t\,"
,
.'
IIUG 26
P6 >14
SENATE
!
S.No. 3418
HEC"IVWFly'
,\.
(In substitution of Senate Bill Nos: 1029, 1034, 1187 and 2250, taking into consi eration
n,
House Bill No. 5942 and Senate Resolution No. 889)
Prepared by the Joint Committees on Trade and Commerce and Energy with Senators Villar,
Roxas, Lapid, and Honasan as authors thereof
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 ofRepresentatives ofthe Philippines in Congress
assembled:
..
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Title. - This Act shall be known as the ''LPG Industry Regulation and
2
Safety Act of2009."
3
SEC. 2. Declaration of Policy. - It shall be the policy of the State to establish a
4
regulatory framework for the refining, importation, refilling, re-qualification, distribution,
5
and marketing processes of the Liquefied Petroleum Gas (hereafter referred to as "LPG")
6
industry to promote the general welfare, encourage the establishment of standards of
7
conduct and codes of practice for LPG businesses, and to ultimately address the quality and
8
safety concerns under a deregulated downstream oil industry structure.
Consequently, the
9
State shall rationalize all applicable laws and executive issuances on the LPG industry to
10
strengthen and enhance existing mechanisms against hazards to health and safety, and
11
deceptive and unconscionable trade acts and practices within the industry. To this end, the
12
State shall undertake the implementation of this Act primarily through the Department of
1


Energy, in coordination with the Department of Trade and Industry, the Department of
2
Justice,
the
Department of Interior
and Local
Government,
and
other appropriate
3
government agencies and instrumentalities.
4
SEC. 3. Construction and Interpretation Clause. - Any doubts in the interpretation of
5
any provision in this Act shall be' interpreted in favor of the interests of the consumer
6
particularly to ensure the safety of consumers and the general public.
7
SEC. 4. Definition of Terms. - For the purposes of this Act, the following terms are
8
herein below defined:
9
(a) "DENR"shall refer to the Department of Environment and Natural Resources;
10
(b) "DILG"shall refer to the Department of Interior and Local Government;
11
(c) "DOE"shall refer to the Department of Energy;
12
(d) "DOST"shall refer to the Department of Science and Technology;
13
(e) "DTI"shall refer to the Department of Trade and Industry;
14
(f) "LGU" and "LGUs" shall refer to a local government unit or local government
15
units, respectively;
16
(g) "PNP"shall refer to the Philippine National Police;
17
(h) "SEC"shall refer to the Securities and Exchange Commission;
18
(i) "Accreditation" shall refer to the formal recognition given by DTI that a re-
19
qualifier of LPG cylinders has compli~d with PNS 17025:2000, "General Requirements for
20
the Competence of Testing 'and Calibr~tion Laboratories," and PNS 03:2000, "Steel Cylinders
21
for Liquefied Petroleum Gas," Part 2 - "Method of Re-qualification;"
22
(j) "Ancillary Equipment" ~hal1 refer to such equipment, parts, and other devices
23
necessary and indispensable for the safe and proper operation of an LPG system such as, but
24
not limited to, valves, hoses, and regulators;
2


1
(k) "Brand Owner" shall refer to a person, natural or juridical, owning the brand,
2
name, logo, color, mark, and/or distinction as registered with the DTI;
3
(1) "Bulk Consumer" shall refer to any person or entity whose regular use or
4
consumption of LPG is limited to its own use and requires bulk storage of LPG at a volume as
5
may be determined by DOE;
6
(m)"Bulk Loader"shall refer to any person or entity, which engages in transportation
7
and carriage of LPG in large quantities in barges, rail or road tankers, bullet
trucks and
8
similar transportation facilities;
9
(n) "Bulk Supplier"shall refer to any person who engages in the sale or distribution of
10
LPG in such large quantities.
11
(0) "Certification" shall refer ~o the written assurance given by DTI that the LPG
12
cylinder has complied with PNS 03:2000, "Steel Cylinders for Liquefied
Petroleum Gas",
13
Part 1 - "Specification" and Part 3 - "Requirement for Repair;"
14
(p) "Consumer" shall refer to any person who purchases LPG for one's own
15
consumption;
16
(q) "Cross Filling" shall refer to the filling of cylinders by a person other than by the
17
brand owner;
18
(r) "Cylinder" or "LPG Cylinder" shall refer to any portable pressure-vessel or
19
container for LPG, designed for the tr~nsportationand storage of LPG;
20
(s) "Cylinder Industry Participants" shall refer to persons or entities engaged in
21
activities or businesses related to the manufacture, importation, transportation, sale and
22
distribution of LPG cylinders and ancillary equipment, including but not limited to, cylinder
23
and ancillary equipment manufacturers and importers, re-qualifiers, repairers, scrapping
24
centers, cylinder seal manufacturers and such other;
3


1
(t) "Cylinder Owner"shall refer to the owner of the cylinder as shown by the brand,
2
mark, trade name or business name embossed or engraved or otherwise permanently
3
indicated on the cylinder in the manner prescribed by the DTI and the DOE;
4
(u) "Cylinder Swapping" shall refer to the industry practice of exchanging LPG
5
cylinders;
6
(v) "Defective cylinder"shall refer to damaged, unsafe and dilapidated cylinders due
7
to corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar defects that
8
render the cylinder unsafe for distribution in accordance with the guidelines set by the DTI,
9
thus creating a substantial risk of injury to the public;
10
(w) "Dealer" shall refer to any person involved in the sale or trading of LPG m
11
cylinders to consumers and/or retail outlets;
12
(x) "Hauler" shall refer to any person involved in the distribution and delivery of
13
LPG in cylinders from one place to another, whether engaged in such activity for purposes of
14
directly selling to consumers or otherwise;
15
(y) "Importer" shall refer to any person engaged in the importation of LPG whether
16
for processing, sale or own use;
17
(z) "Industry Participants" shall refer to persons or entities engaged in activities or
18
businesses related to the manufacture, importation, transportation, distribution or sale of
19
LPG, including, among others, Cylinder Industry Participants and LPG Industry Participants
20
as defined in this Act;
21
(aa)"LPG'~ shall refer to liquefied petroleum gas, which consists of commercial
22
propane gas or commercial butane gas or a mixture of the two gases, with properties
23
conforming to the standards set forth in the PNS 22;
24
(bb)
"LPG Industry Participants" shall refer to persons or entities engaged in
25
activities or businesses related to the manufacture, importation, transportation, sale and
4


distribution of LPG, including but not limited to LPG refiners, LPG importers, re-fillers;
2
piped LPG providers, haulers, dealers, service stations, retail outlets and seal manufacturers;
3
(cc)"Marketer"shall refer to any person, whether natural or juridical, engaged in the
4
sale of LPG, whether in bulk or retail;
5
(dd)
"Petroleum products" shall refer to the products formed in the course of
6
refining crude petroleum through distillation, cracking, solvent refining and chemical
7
treatment coming out as primary stocks from the refinery such as but not limited to LPG,
'.
8
naphtha, gasoline, solvent, kerosene, aviation fuels, oils, waxes and petrolatum, asphalts,
9
bitumen, coke and refinery sludge, or such refinery petroleum fractions which have not
10
undergone any process or treatment as to produce separate chemically-defined compounds in
II
a pure or commercially pure state and to which various substances may have been added to
12
render them suitable for particular uses, provided that the resultant product contains not less
13
than fifty percent (50%) by weight of such petroleum products;
14
(ee)
"Philippine National Standards" or "PNS" shall
refer
to
the
standard
IS
promulgated by the Bureau of Product Standards (BPS) of the DTI relating to product
16
specifications, test methods, terminologies and standardization procedures, guidelines or
17
practices;
18
(ff) "Piped LPG Provider" shall refer to any person engaged in the business of
19
supplying or distributing LPG to consumers through a pipeline system, including operators of
20
central storage compounds for piped LPG or reticulated system facilities;
21
(gg)
"Pipeline System"shall refer to a network of pipes or similar conduits used for
22
the conveyance of LPG from the piped LPG provider to consumers;
23
(hh)
"Primary Storage Facilities" shall refer to the plant, depot, equipment and
24
other attendant facilities, such as und,erground caverns, refrigerated tanks, and pressurized
25
steel tanks, used for storage of LPG;
5


1
(ii) "Qualified LPG Serviceman" shall refer to an individual who has been trained,
2
qualified and certified by the DOE or any deputized agency thereof, or to an individual who
3
has successfully completed an approved training course for LPG servicemen in a training
4
school duly recognized and accredited by the Philippine government;
5
(jj) "Refiller" shall refer to (1) a service provider authorized by a cylinder owner to
6
refill cylinders on the latter's behalf; or (2) any person or entity who refills LPG into one's
7
own cylinders;
8
(kk)
"Refilling Plant" shall refer to any installation that is used for refilling LPG
9
into cylinders and has LPG bulk storage and refilling facilities therefore;
10
(II) "'Refiner" shall refer to any person who refines LPG through distillation,
11
conversion
and
treatment
of
crude
oil
and
other
naturally
occurring
petroleum
12
hydrocarbons;
13
(mm) "Re-qualification" shall refer to the method or procedure by which a cylinder
14
is subjected to inspection and reevaluation by DTI in accordance with the specifications set
15
forth in the PNS 03-2000, "Steel Cylin'ders for Liquefied Petroleum Gas," Part 2 - "Method of
16
Re-qualification to determine its acceptability for continuous use and distribution and
17
subsequent repair or scrappage, where appropriate;"
18
(nn)
"Re-qualifer" shall refer to any person duly accredited by the DTI pursuant to
19
this Act to engage in the business of re-qualifying LPG cylinders;
20
(00)
"Repair"shall refer to the removal and replacement of parts or attachments of
21
LPG cylinders or the performance of any other necessary corrective and restorative measures
22
pursuant to the PNS, to restore the fitness of LPG cylinders for refilling and distribution;
23
(pp)
"Repairer" shall refer to any person or entity duly certified by the DTI to
24
engage in the business of repairing LPG cylinders;
6


(qq)
"Retail Outlet" shall refer to any entity that sells LPG cylinders directly to a
2
consumer in quantities as may be determined by the DOE;
3
(rr)"Reticuiated System"shall refer to a means of supplying LPG through a pipeline
4
network from a centralized cylinder bank or bulk installation to multiple customers situated
5
in a common locality;"
6
(ss) "Scrappage"shall refer to the destruction of defective LPG cylinders declared by a
7
re-qualifier or the DTI to be unfit for use;
8
(tt) "Scrapping Center"shall refer to any person or entity engaged in the business of
9
disposing defective LPG cylinders;
10
(uu)
"Seal" shall refer to the protective cover placed on the valve of an LPG
II
cylinder;
12
(vv)
"Service Station"shall refer to a retail establishment engaged in the business of
13
selling LPG in cylinders as a retail outlet and in distributing and dispensing of LPG to
14
consumers for automotive use. It shall be deemed a dealer or retail outlet for purposes of this
15
Act; and
16
(ww) "Tare weight" shall refer to the net weight of the LPG cylinder excluding its
17
contents, as engraved in the collar and painted in the body thereof and shall be expressed in
18
kilograms in accordance with the specifications as may be prescribed by the DTI.
, CHAPTERII
IMPLEMENTING AGENCIES
19
SEC. 5, Lead Agency. - Unless expressly stated in this Act that a particular function
20
shall be the responsibility of another,.government agency, the DOE shall be the primary
21
government agency responsible for the implementation and enforcement of this Act. The
22
DOE shall supervise and monitor the LPG industry and its participants to ensure compliance
23
with national product quality, environmental and worker safety, and consumer welfare
24
standards,
7


SEC. 6. Additional Powers and Functions ofthe DOE Secretary. - In connection with
2
the enforcement of this Act and in addition to hislher powers and functions under existing
3
laws, the DOE Secretary shall have the' following powers and functions:
4
(a) Administer and supervise the enforcement and implementation of this Act,
5
including the promulgation of Implementing Rules and Regulations, and issuance, from time
6
to time, of other regulations, orders or' circulars necessary to implement this Act;
7
(b) Formulate and implement policies, programs and regulations on the LPG
8
industry,
including
the
importation,
exportation,
stockpiling,
storage,
shipping,
9
transportation, refining, processing, marketing and distribution of LPG, whether distributed
lOin cylinders, through pipelines or other means, to ensure that product quality, environmental
11
and worker safety, and consumer welfare standards are met;
12
(c) Inspect and evaluate LPG and LPG cylinders in circulation, at any time from and
13
after its purchase by a refiner, marketer, or refiller, and while it is in circulation or intended
14
for distribution to the public, for purposes of determining conformity to established quality
15
and safety standards for LPG cylinders developed and established by the Bureau of Product
16
Standards (BPS);
17
(d) Establish safety standards for refilling plants, depots, storage areas, transportation
18
and other facilities of LPG industry players and inspect and evaluate refilling plants, depots,
19
storage areas, transportation and other facilities or business premises of LPG Industry
20
Participants to ensure compliance to safety standards;
21
(e) Direct LPG brand owners, refillers, dealers and retail outlets to periodically
22
submit cylinders for re~qualification, and to secure proper proof of compliance therewith in
23
accordance with the requirements of DTI;
24
(f) Investigate, motupropio or upon report of any person, possible infractions of this
25
Act by industry participants, and initiate the necessary actions warranted under the
8


circumstances, including the recall, prohibition, forfeiture or seizure of substandard LPG and
2
LPG cylinders as well as illegally fiUe? LPG cylinders as defined in Chapter VI of this Act,
3
the filing of charges with the proper 'court or government agency, and the enforcement of
4
administrative sanctions as provided under this Act;
5
(g) Recommend to the concerned LGUs the suspension or revocation of the business
6
permits or licenses of LPG industry participants who violate the provisions of this Act;
7
(h) Issue
Standards
Compliance
Certificates
to
LPG
industry
participants
in
8
accordance with Chapter III of this Act, and to revoke the same;
9
(i) Impose and collect administrative fines for violation of this Code, as well as fees
10
or similar charges for its services, including the processing of applications for Standards
11
Compliance Certificate and collection of administrative fines for violations of this Act;
12
(j) Create and maintain a central database of industry participants, and an inventory
13
of existing and projected LPG supply levels in the indu~try, which shall be updated monthly
14
through its own initiative and through reports of LPG industry participants;
15
(k) Investigate and keep a record of incidents of injury or damage to person or
16
property, caused by or attributable to the improper production, storage, handling or use of
17
LPG for purposes of prosecuting or filing the appropriate action against responsible persons;
18
(1) Establish and develop research and training programs to develop new uses for
19
LPG, promote improved and innovat,ive methods and technologies for safe and efficient
20
production, storage, handling or use of LPG, and to foster public awareness thereof;
21
(m) Consult and coordinate, on a regular basis, with LPG industry participants,
22
associations and consumers in furtherance of the objectives of this Act;
23
(n) Coordinate with other government agencies, bodies and instrumentalities to
24
ensure the effective implementation of this Act, which shall include the power to deputize
25
other agencies to assist the DOE in implementing its mandate under this Act.
9


(0) Exercise such other powers and functions as may be necessary or incidental to
2
attaining the objectives of this Act; and
3
(p) Investigate,
prosecute,
and
Impose
penalties
for
dumping
activities
or
4
unauthorized filling of bulk tanks installed in industrial LPG consumers by bulk suppliers
5
other than the owner of the tanks.
6
SEC. 7. Powers and Functions of DTL - Under this Act, the DTI shall have the
7
following exclusive powers and functibns:
8
(a) Develop, formulate, promulgate, review and reVIse the PNS for LPG, LPG
9
cylinders, and other ancillary equipment;
10
(b) Inspect and evaluate LPG cylinders, whether manufactured locally or imported,
II
prior to any sale or distribution to LPG refiners or re-fillers, and certify to their conformity
12
to PNS and their fitness for public sale and distribution;
13
(c) Inspect and evaluate ancillary equipment, whether manufactured locally or
14
imported and certify to their conformity to PNS and their fitness for public sale and
IS
distribution;
16
(d) Grant accreditation and certification of conformity to PNS to re-qualifiers,
17
repairers, scrapping centers, cylinder and seal manufacturers and other independent,
18
competent, private persons, and entities that provide products and services to ensure
19
compliance by industry
participant~ with the PNS for LPG cylinders and ancillary
20
equipment, in accordance with Chapt~r III of this Act, and to revoke the same; and
21
(e) Extend all necessary assistance to the DOE in the implementation of measures in
22
furtherance of the objectives of this Act.
23
SEC. 8. Powers and Functions ofDILG. - Under this Act, the DILG shall have the
24
following powers and functions:
10


(a) Coordinate with LGUs and the PNP for the orderly and effective implementation
2
of this Act, and of the orders, rules, regulations and issuances pursuant thereto, including
3
recommendations for the suspension or revocation of business permits or licenses of LPG
4
industry participants found to be in violation of this Act;
5
(b) Coordinate with the DOE and the DTI in the dissemination of information
6
relevant to the implementation a f this Act, particularly to the LGUs and the PNP; and
7
(c) Extend all necessary assistance to the DOE with respect to the enforcement of
8
measures in furtherance of this Act.
9
SEC. 9. Powers and Functions ofLGUs. - LGUs, pursuant to their powers provided by
10
law especially under Republic Act No. 7160, otherwise known as the Local Government
II
Code, or, upon recommendation of the DOE, and upon due notice and hearing, shall have
12
the power to suspend or revoke the business permit or license of any LPG industry
13
participant within their respective areas of jurisdiction for violation of the provisions of this
14
Act: Provided, That upon notice by.the DOE of revocation of the Standards Compliance
15
Certificate of an LPG industry participant issued by the DOE under Chapter III of this Act,
16
the LGU shall
immediately revoke the business permit or license of said LPG industry
17
participant.
18
In case of conflict between the decision of the DOE and the LGU involving matters,
19
especially violations, covered by this Act, the decision of the DOE shall prevail.
20
SEC. 10. Technical Working Group. - The DOE shall be authorized to convene a
21
Technical Working Group to assist the DOE in the thorough review and evaluation of the
22
rules and regulations, policies, safety standards and PNS affecting the LPG industry.
The
23
Technical Working Group shall be composed of not less than ten (10) nor more than fifteen
24
(15) representatives of the pertinent implementing government agencies and the private
25
sector particularly industry participants and consumer groups. Private sector representation
11


In the Technical Working Group shall be determined and appointed by the Secretary
2
through consultation.
CHAPTER III
MONITORING AND ENFORCEMENT MECHANISMS
3
SEC. 11.
Ownership ofLPG·Cylinders. - The provisions of the Civil Code to the
4
contrary notwithstanding, the brand owner whose permanent mark appears on the LPG
5
cylinder shall be presumed the owner thereof, irrespective of the party in custody or
6
possession of the cylinder, and regardless of whether or not such cylinder is or continues to
7
be properly marked, stamped or identified to contain its LPG brand, or whether or not such
8
cylinder is in compliance with or .continues to comply with any other product or quality
9
standard prescribed under law or by the DTI pursuant to this Act, unless otherwise there is
10
any unequivocal proof or indication that such cylinder was sold, alienated, or otherwise
11
disposed of by the refiner or importer to an unrelated third party under a written
12
instrument,
13
The brand owner shall, through its authorized dealer or outlet, refund the amount
14
indicated in the deposit slip or receipt when the consumer returns the cylinder.
15
The brand owner shall have the obligation to ensure that its cylinders comply with all
16
required quality and safety standards and specifications before they are released for
17
distribution: Provided, That receipt by the DOE of a verified notice or report from the brand
18
owner regarding any lost, stolen or missing LPG cylinders shall prima facie relieve the
19
cylinder owner of the obligation to ensure the quality and safety of such LPG cylinders.
20
Such report may be rebutted by contrary evidence.
21
SEC. 12. Undertaking to Comply with Requirements. - Any person or entity who
22
intends to engage in any business or ~ctivity which shall render it an industry participant as
23
defined in this Act, shall undertake to comply with the requirements of this Act, its
24
implementing rules. and regulations, and such other issuances of the DOE, under a verified
12


instrument to be executed in such form as required by the DOE,
Due filing of the verified
2
undertaking shall be a condition precedent for the issuance of the Standards Compliance
3
Certificate required under this Act: Provided, That submission of such undertaking does not
4
exempt such person or entity from securing any other certification of quality, health, safety,
5
security,
or
environmental
clearance
from
the
proper
governmental
agencies
or
6
instrumentalities as may be provided by other laws.
7
Any person or entity intending to import or export LPG or LPG cylinders shall, in
8
addition to the requirement for a verified undertaking, furnish a report to the DOE prior to
9
every importation or exportation: Provided, That all LPG and LPG cylinder importations
10
shall be in accordance with the law, including international agreements to which the
11
Philippines is a signatory.
12
SEC. 13. Reports and Disclosures to DOR - The DOE, as the case may be, shall have
13
the power and authority to require industry participants to submit written, electronic or
14
other form of reports or disclosures, as the DOE may deem reasonable and necessary to
,.
15
perform their functions under this Act.
Any industry participant who fails to submit any
16
such report or disclosure within the period and in the manner prescribed by the DOE shall
17
be penalized under Section 35 of this Act.
18
SEC. 14. Central Database of Industry Participants. - The central database of LPG
19
industry participants shall include their corporate or business name or trade nan:e; list of all
20
directors and officers;
principal office or business address; primary purpose or nature of
21
business; registered brand name or lo'go for LPG, LPG cylinder, facilities and equipment;
22
haulers, dealers, retail outlets and cylinder seal manufacturers; violations committed or
23
incidents relating to'such violations, if any; agreements with other industry participants,
24
such as for cross-filling and similar arrangements; list oflost, stolen or missing LPG cylinders;
25
and such other relevant information as may be determined by the DOE.
13


The central database shall be created by the DOE within one (1) year from the
2
effectivity of this Act. This central database shall be updated on a monthly basis and shall be
3
made available to the public and through the Internet subject to reasonable fees and charges
4
and during office hours.
"
5
SEC. 15. Standards Compliance pertificate. -
6
Ca) Requirement Prior to Engaging in Business. - Any person or entity intending
7
to engage in business involving LPG, LPG cylinders or ancillary equipment or in any activity
8
that shall render it an industry participant as defined in this Act shall secure its Standards
9
Compliance Certificate from the DOE prior to commencement of commercial operations and
10
annually thereafter.
For'those subject to Section 7 (b), (c), and (d) which requires a
11
accreditation or certificate of conformity to PNS issued by the DTI, submission of the such
12
accreditation or certificate of conformity shall be a requirement prior to the issuance of a
13
Standards Compliance Certificate by the DOE.
14
For purposes of this Act, the Standards Compliance Certificate shall certify that such
15
person or entity has complied with the safety rules and regulations prescribed by the DOE
16
and other pertinent government agencies; Provided, that such other endorsements by other
17
government agencies applicable to the particular classification of the industry participant as
18
defined and stated in this Act shall have been fully complied with: Provided further, That, a
19
brand owner shall be responsible for the following:
20
1) proper manufacture, maintenance, and re-qualification of all its cylinders prior to
21
the release thereof to the public, in accordance with this Act;
22
2) proper filling of cylinders; ,
23
3)
assurance that LPG is readily available at his refilling plant/s for refilling into his
24
own cylinders; and
25
4)
refilling of his own cylinders, unless authorized by another brand owner.
14


No industry participant shall engage in business without first having duly secured a
2
Standards Compliance Certificate. Any industry participant that subsequently engages in an
3
activity or business involving LPG or' LPG cylinders outside of the scope of its Standards
4
Compliance Certificate shall duly notify the DOE and secure the proper Standards
5
Compliance Certificate from the DOE for the said new activity or business, where deemed
6
necessary by the DOE.
7
The DOE shall prescribe specific guidelines for compliance of retail outlets, dealers
8
and haulers in remote areas outside Metro Manila, in which case the verified undertaking
9
required under this Chapter may be sl;lbmitted through registered mail, without prejudice to
10
the conduct of a standards compliance inspection.
11
(b) Persons or Entities Already Engaged III LPG Business. - Subject to the
12
provisions of Section 31 of this Act, "any industry participant already legally engaged in
13
business upon effectivity of this Act shall obtain a Standards Compliance Certificate prior to
14
the renewal of its business license and annually thereafter, in accordance with the rules,
15
regulations, and guidelines issued by the DOE.
16
(c) Bulk Consumers, - A bulk consumer shall be required to secure a Standards
17
Compliance Certificate from the DOE prior to its storage of LPG, and annually thereafter
18
prior to its renewal of business permit: Provided, That if the bulk consumer has secured a
19
similar certificate from the Department of Labor and Employment (DOLE) and the Bureau of
20
Fire Protection (BFP), such certificate from these agencies shall be deemed substantive
21
compliance under this Act.
22
(d) Required Submissions for Standards Compliance Certificate, - A Standards
23
Compliance Certificate shall only be issued upon a satisfactory finding of the applicant's
24
compliance with the provisions of this Act and submission of requirements, which may
25
include the following, where applicable:
15


1)
Certification of compliance of applicant's facilities with fire safety laws and
2
regulations from the Bureau of Fire Protection (BFP);
"
3
2)
Environmental Complianc~Certificate (ECC) from the DENR;
4
3)
Product liability insurance' certificate from an insurer duly registered with and
5
licensed by the Insurance Commission;
6
4)
Permits on suitability, safety and soundness of plant and facilities for the proposed
7
or existing operation;
8
5) Compliance with the provisions of Republic Act No. 9514, otherwise known as
9
the Revised Fire Code of the Philippines of 2008 , and/or pamphlet 58 of the National Fire
10
Protection Association (NFPA 58), otherwise known as the "Liquefied Petroleum Gas Code";
11
and
12
6) Accreditation or certificate'of conformity to PNS issued by DTI as provided under
13
Section 7 (b), (c) and (d) of this Act.
14
7) Such other documents or requirements as the DOE may prescribe as necessary for
15
the effective implementation of this Act.
16
(e) Renewal and Posting of Standards Compliance Certificate. - The Standards
17
Compliance Certificate shall be renewed annually and shall be prominently posted or
18
displayed in a public, accessible and conspicuous area within the business premises of the
19
industry participant.
,
20
SEC. 16. Certificate ofAccreditation for Manufacturers, Re-qualifiers, Repairers of
21
LPG Cylinders and Cylinder Seal Manufacturers - Prior to the commencement of its
22
operations and annually thereafter, any person who intends to engage in the business of
23
manufacturing, re-qua1ifying, or repairing LPG cylinders, shall obtain a Certificate of
24
Accreditation from the DTI prior to the commencement of its operations and annually
25
thereafter.
16


Any person already engaged in the business of re-qualification, repair, scrappage or
2
cylinder and seal manufacturing upo~ the effectivity of this Act shall apply for a Certificate
3
of Accreditation from the DTI prior to the renewal of its business permit.
4
SEC. 17. Monitoring andStandards Compliance Inspection. -
5
(a) Monitoring of Facilities and Equipment. - The DOE shall monitor the refining,
6
importation and distribution of LPG and conduct annual inspections of refinery, storage,
7
hauling, transportation, refilling, or installation facilities and equipment to ensure that clean,
8
environmentally-safe and worker-benign technologies are applied, and to ensure conformity
9
with quality and safety standards and other mandatory requirements under this Act.
10
(b) Standards Compliance Inspection. -
The DOE shall not issue a Standards
11
Compliance Certificate unless it is shown, upon proper conduct of standards compliance
12
inspection, that the industry participant has complied with this Act and such other rules and
13
regulations as may be prescribed by the DOE.
14
(c) Frequency of Standards Compliance Inspection. - The DOE may, motu propio or
15
upon a verified statement or complaint by any person, conduct regular or random
16
inspections of the refinery, storage, 'hauling, transportation or installation facilities and
17
equipment of industry participants as it may deem reasonable and necessary to implement
18
the purposes of this Act.
19
(d) Conduct of Standards Compliance Inspection. -
The DOE shall prescribe
20
guidelines for the proper conduct of the standards compliance inspection, including but not
21
limited to the scope of the relevant premises and records as may be subject to inspection.
22
(e) Power to Deputize. - The DOE may deputize such government agencies it deems
23
necessary to assist its functions as provided in this Section.
24
SEC. 18. Requirement for Business Pennit. - The Standards Compliance Certificate
25
provided tl11der Section 15 of this Act shall be a mandatory requirement for the grant or
17


I
renewal of any local government license or permit to engage in business involving LPG, LPG
2
cylinders, or ancillary equipment, regardless ofwhether such products or activities constitute
3
the entire or a portion of the business for which a business license is sought by the applicant.
4
SEC. 19. Issuance ofReceipts. - .
5
(a) Transactions in Bulk. - All transactions involving the sale or transfer of LPG
6
m bulk must be covered by a form bearing, in addition to other requirements under
7
applicable laws, the following information:
8
1) registered name of the seller;
9
2) address ofthe seller;
10
3) date of the transaction;
II
4) quantity or volume of the product;
12
5) plate number of transporting trucks or registered name of transporting barge;
13
6) serial/tracking no. of brand owner
14
7) total price of the transaction; and
15
8) such other information as may be prescribed by the DOE with the concurrence of
16
affected industry players.
17
(b) Transactions in Cylind~~s. - All transactions involving the sale or transfer of
18
LPG from dealers to retail outlets and to direct consumers must be covered by an official
19
receipt or sales invoice bearing, in addition to other requirements under applicable laws, the
20
following information:
21
1)
registered name of the seller;
22
2)
address of the seller;
23
3)
date of the transaction;
24
4)
brand of LPG;
25
5) serial/tracking no. of brand owner
18


6)
net weight or weight of the LPG contained in the cylinder;
2
7) unit price per cylinder;
3
8)
total price of the transaction; and
4
9) such other information as may be required by the DOE.
5
All other transactions involving the sale or transfer of possession or ownership of LPG
6
from one industry participant to another must likewise be covered by an official receipt or
7
other written instrument bearing the ",bove information, as applicable.
8
SEC. 20. Declaration ofLPG Cylinder as Injurious, Unsafe or Dangerous. - When the
9
DOE finds, motu propio or upon petition of any person, that an LPG cylinder is defective and
10
hence, possibly injurious, unsafe or dangerous, it shall, after due notice and hearing, issue the
11
appropriate order for its immediate confiscation, recall, seizure, impoundment or prohibition
12
from public sale or distribution: Provided, That, in the sound discretion of the DOE it may
13
declare an LPG cylinder to be imminently injurious, unsafe or dangerous, and order its
14
immediate recall, seizure and impoundment, in which case the cylinder owner shall be
15
afforded a hearing, within forty-eight (48) hours from issuance of such order, for the purpose
16
of determining the propriety of the recall and seizure of the cylinders: Provided, fi.zrther,
17
That such a declaration shall be limited to instances when the cylinder is already filled and
18
already sealed inside a refilling plant; dealer's showroom; retail outlets; and/or cylinder
19
transporter.
20
For cases initiated motu propio by the DOE, it shall make a final determination of
21
whether an LPG cylinder is injurio,":s, unsafe or dangerous within thirty (30) days from
22
termination of administrative proceedings: Provided, fi.zrther, That in the absence of such
23
determination upon expiration of the period therefor, the DOE shall thereafter release
24
custody of the LPG cylinders to the industry participant in custody thereof prior to the order
25
for recall, impoundment or prohibition from public sale or distribution.
19


1
SEC. 21. Procedure for Petition for Declaration ofLPG Cylinder as Injurious, Unsafe
2
or Dangerous. - Any interested person may, upon payment of the appropriate filing fee
3
prescribed by the DOE, petition the DOE for an order declaring an LPG cylinder injurious,
4
dangerous or unsafe. In case the DOE', acting on such petition or on its own initiative and
5
upon due notice and hearing, determines an LPG cylinder to be injurious, dangerous or
6
unsafe, it shall so notify the cylinder owner of such finding and order the recall, prohibition
7
or seizure of the LPG cylinder.
8
SEC. 22. Recall, Seizure, Impoundment andProhibition ofDefective LPG Cylinders. -
9
The order for recall, seizure, impoundment or prohibition issued by the DOE shall contain a
10
prohibition against the refilling, sale or distribution of the recalled or banned cylinder.
11
The cylinder owner against whom the order for recall, prohibition or seizure is issued
12
shall be required to subject the recalled, banned or seized LPG cylinder to repair or re-
13
qualification processes to render the same compliant with appropriate PNS, or, where repair
14
or re-qualification is not possible or practicable, to present proof of scrappage thereof.
15
The cylinder owner against wh'om the order for recall, seizure or prohibition is issued
16
may petition for the revocation of the order.
The DOE shall revoke the order for recall,
17
prohibition or seizure upon a finding that the subject LPG cylinder has been repaired or
18
otherwise made compliant with the required PNS, or has been replaced with a like or
19
equivalent cylinder which conforms with the appropriate PNS.
20
The cylinder owner shall not charge a consumer who avails of the remedy as provided
21
above of any expenses or costs that' may be incurred in the course of repair and re-
22
qualification.
23
SEC. 23. Disposition of Recalled, Banned or Seized Cylinders. - The DOE shall
24
formulate rules for the disposition of recalled, banned or seized cylinders: Provided, That it
25
shall initially adopt and enforce the rules for disposition of recalled, banned or seized
20


cylinders established by the DTI; Provided mrther, That it may amend the same when it
2
deems necessary.
3
SEC. 24. Weighing Devices. -
4
(a) Calibrated and Sealed Weighing Devices Required in Premises. - All refiners,
"
S
importers, refillers, haulers, dealers, aJ?d retail outlets shall maintain, at all times, in all their
6
establishments or outlets and within the sales areas accessible to the public, suitable
7
weighing devices duly calibrated annually and sealed by the City or Municipal Treasurer, the
8
DOST, or any other government agency authorized to officially calibrate the same.
The
9
weighing devices shall accurately measure LPG cylinders up to one-tenth (0.1) of one
10
kilogram.
11
(b) Checking of LPG Cylinder Content by Dealers, Retail Outlets and Haulers. - All
12
dealers, retail outlets and haulers that sell directly to consumers, shall weigh the LPG
13
cylinders prior to being placed in the sales areas and also in the presence of the customers
14
prior to sale, to afford the latter an opportunity to verify the correctness of the weight of the
1S
cylinders and the LPG contents thereof.
16
SEC. 25. Cylinder Sealing. - All LPG cylinders shall be provided with seals after filling,
17
which conform to the specifications of the DOE: Provided, That the DOE, after consultation
18
with the concerned brand owners, shall establish such specifications: Provided, mrther, That
19
the cylinder owner and its authorized refiller shall be jointly responsible for ensuring that
20
LPG cylinders are properly sealed before the cylinders leave the filling or refilling plants:
21
Provided, finally, That LPG cylinders with tampered or broken seals shall not be sold or
22
distributed.
23
Cylinder seal manufacturers shall not sell seals of a LPG brand owner to any other
24
brand owner, unless allowed by both the brand owner itself and the DOE. Seals are to be
25
registered with the DOE.
21


SEC. 26. LabelingRequirements for LPG Cylinders. - LPG cylinders shall comply with
2
labeling requirements of the PNS, with the labeling requirement provided under this Section
3
and as may be further prescribed by the DTI.
4
(a) For LPG Cylinder Collar. - All LPG cylinders, whether manufactured locally
S
or imported, shall have the following embossed or stamped on the cylinder collar:
6
1) The manufacturer's registered trade name or brand name, trademark and business
7
name;
8
2)
For imported cylinders, the name and address of the importer in the Philippines;
9
3)
Philippine Standard or IJ?port Commodity Clearance certification marks, as
10
applicable;
11
4) Specific standard used;
12
5)
Date of testing or re-qualification;
13
6)
Thickness of plate;
14
7)
Cylinder water capacity;
1S
8) Tare weight;
16
9)
Design and test pressure; and
17
10) Serial number.
18
The above requirements shall form an integral part of the cylinder collar, without
19
danger of being erased or detached under ordinary handling of the cylinder.
20
(b) For LPG Cylinder Body. - All LPG cylinders, whether manufactured locally or
21
imported, shall bear the following:
22
1) The registered brand name, trade name or trademark of the LPG product;
23
2) A color which distinguishes the brand owner of the LPG it contains;
24
3) Tare weight; and
2S
4) Net weight.
22


The brand name, trade name or trademark of the LPG product shall be embossed and
2
shall form an integral part of the body of the cylinder, without danger of being erased or
3
detached under ordinary handling of the cylinder.
4
SEC. 27. Delivery Vehicles, DHvers and Attendants. - All trucks and other vehicles
5
used for transporting and delivering LPG cylinders shall be open and the same shall be
6
registered with the DOE, in accordance with the guidelines to be promulgated by the DOE,
7
in consultation with the industry participants and other concerned agencies.
8
All haulers shall display on their delivery trucks or vehicles a prominent DOE
9
signage. Failure to register the delivery vehicle shall give rise to a presumption that the
10
vehicle is not duly authorized to transport LPG.
11
Vehicles not registered and without the appropriate DOE signage shall be seized or
12
impounded by the DOE.
13
Guidelines for the accreditation of drivers and attendants for LPG delivery vehicles
14
shall be prescribed by the DOE upon prior consultation with the industry participants and
15
other concerned government agencies.
16
SEC. 28. Direct Sales by Haulers. - Subject to guidelines and requirements as may be
17
promulgated by the DOE, haulers who engage in direct selling of LPG to consumers shall be
18
treated as dealers for purposes of this Act and shall observe the standards and requirements
19
for dealers under this Act.
,.
20
SEC. 29. LPG Cylinder Exchange, Swapping and Rehabilitation. - The DOE, in
21
consultation with the DTI, LPG indu;try participants, concerned government agencies and
22
other stakeholders, shall formulate a program and issue the appropriate rules necessary to
23
govern the practice of exchanging, swapping and rehabilitation of cylinders in the trade of
24
LPG, including appropriate sanctions for violation thereof.
25
This Section shall be subject to the following;
23


I
I. Cylinder Exchange, Swapping and Rehabilitation shall be governed by the
2
following principles and standards:
3
(a) Ensuring the safety of the cylinder for the benefit of the consumer shall be the
4
priority concern; Provided, that any procedure in the cylinder exchange, swapping and
5
rehabilitation system, which may increase significantly the retail costs of a LPG cylinder,
6
shall be subject to consultations with consumer groups and industry participants by the DOE.
7
(b) No procedure in the cylinder exchange, swapping and rehabilitation system shall
8
be permitted if it results to unfair trade practices that unduly benefits one industry
9
participant over another.
10
(c) The cylinder exchange, swapping and rehabilitation system shall take into
11
consideration the following factors:
12
i. The prevailing economic conditions of the LPG industry, including but not
13
limited to, the supply of LPG including the levels of import and domestic production
14
of LPG adjusted for applicable foreign exchange rates, the demand for LPG including
15
the levels of household and bulk use, as well as the prevailing prices of LPG, among
16
others;
17
ii. The number of LPG cylinders and ancillary equipment, classified into its
18
usability and cost effectiveness;
19
iii. The developments jn LPG safety technology and the energy sector in
20
general;
21
iv. The statistics and other information on the level of injuries from LPG
22
related incidents as well as safety compliance by each and all industry participants;
23
v. Such other factors that may affect the viability of the LPG industry
24
particularly on its safety and affordability.
24


I
2. The DOE shall conduct a study that will examine the viability and practicality of
2
the establishment of the practice of cylinder exchange, swapping and rehabilitation between
3
LPG industry participants. The DOE shall issue a decision based on this study which shall
4
implement the mandate stated in this Section.
This study shall be completed within one
S
hundred and eighty (180) days from the effectivity of this Act.
6
3. All LPG industry participants shall cooperate with the DOE in the implementation
7
of cylinder exchange, swapping and rehabilitation programs to ensure that only duly
8
qualified cylinders are put in circulation.
. CHAPTER IV
QUALITY STANDARDS
9
SEC. 30. Promulgation of Quality Standards. - In order to reduce safety risks and
10
operational hazards, and promote the use of environmentally safe and worker-benign
11
technologies and processes, industry participants are hereby required to comply with the
12
quality standards established by the .DOE for the LPG industry consistent with the PNS
13
formtllated by the DTI. The quality standards shall provide for, but not be limited to, the
14
following:
1S
(a) Primary Storage Facilities; ..
16
(b) Cylinder-Filling Plants and Facilities;
17
(c) Bulk-Loading, Unloading and Transportation of LPG;
18
(d) Dealers and Retail Outlets;
19
(e) Service Stations.
20
The DOE shall formulate the specific guidelines for mandatory compliance with the
21
established quality standards and enforce the appropriate sanctions for violations thereof:
22
Provided, That the DOE shall consult the LPG industry participants in the formulation of
23
said standards; Provided further, That nothing in this Chapter will allow licensees for
2S


refilling plants, dealers, and retailers' to sell ancillary equipment not recommended by the
2
cylinder brand owner: Provided, finally, That the DOE, in formulating the quality standards
3
in this Act, when applicable, shall adopt the Philippine LPG Association safety code and the
4
applicable international safety standards for the LPG industry, including, but not limited to,
5
the National Fire Protection Association (NFPA) 58, otherwise known as the liquefied
6
petroleum gas code for LPG.
,.CHAPTERV
PROHIBITED ACTS
7
SEC. 31. Engaging in
Busines~ 'Without Standards Compliance Certificate. - Any
8
industry participant who engages. in business without securing a Standards Compliance
9
Certificate from the DOE as required under Chapter III of this Act shall be penalized with a
10
fine of Five Thousand Pesos (phps:ooo.OO) for an individual and Ten Thousand Pesos
11
(Php10,000.00) for a corporation, for each day of operation without a Standards Compliance
12
Certificate: Provided, That the maximum fine to be imposed shall be Five Million Pesos
13
(PhpS,OOO,OOO.OO) for an individual and Ten Million Pesos (PhplO,OOO,OOO.OO) for a
14
corporation.
15
SEC. 32. Engaging in Business .Without Accreditation. - Any person who engages in
16
the business of manufacturing cylinder seals or of re-qualifying, repairing or scrapping LPG
17
cylinders without first securing 'a certificate of accreditation from the DTI as provided under
18
this Act, shall be penalized with a fine of Three Thousand Pesos (Php3,OOO.OO) for an
19
individual and Five Thousand Pesos (Php5,OOO.OO) for a corporation, for each day of
20
operation without a certificate of accreditation: Provided, That the maximum fine to be
21
imposed shall be Five Million Pesos (Php5,OOO,OOO.OO) for an individual and Ten Million
22
Pesos (PhplO,OOO,OOO.OO) for a corporation.
23
SEC. 33. Obstruction ofInspection. - Any industry participant who refuses, prevents
24
or obstructs the inspection of its premises and records as provided under Chapter III of this
26


1
Act shall be penalized with a fine of Three Hundred Thousand Pesos (Php300,000.00) for an
2
individual and Five Hundred Thousand Pesos (PhpSOO,OOO.OO) for a corporation, for each
3
instance ofviolation.
4
SEC. 34. Failure to Post Standards Compliance Certificate. - An industry participant
5
who fails or refuses to post its Standards Compliance Certificate as required under Chapter
6
III of this Act and as required by the DOE, shall be penalized with a fine not exceeding Five
7
Thousand Pesos (Php5,000.00) for each instance of violation.
8
SEC. 35. Failure to Submit Reportorial Requirements. - An industry participant who
9
fails to submit periodic reports as may be required by the DOE, within a reasonable period
10
and in the manner prescribed by the DOE, shall be penalized with a fine not exceeding Five
11
Thousand Pesos (Php5,OOO.OO) for each instance ofviolation.
12
SEC. 36. Illegal Storage. - A refiner, importer, refiller, hauler, dealer, retail outlet or
13
bulk consumer who stores LPG in bulk without obtaining the Standards Compliance
14
Certificate required under Chapter III ~f this Act shall, upon conviction, be penalized with a
,
15
fine of not less than Twenty Thousand Pesos (Php20,OOO.OO) but not more than One
16
Hundred Thousand Pesos (PhplOO,OOO.OO), or imprisonment of at least six (6) months but
17
not more than two (2) years, or both, at the discretion of the court: Provided, That the
18
second and subsequent violations shall be penalized with both fine and imprisonment as
19
provided herein.
20
SEC. 37. Failure to Comply with Product Standards. - An industry participant who, by
21
act or omission, fails to comply with plant or product standards set by the DOE with respect
22
to their specific activity shall, upon conviction, be penalized as follows:
23
(a) Non-compliance with DOE mandatory requirements on safety designs for
24
refilling plants, equipment, depots, pipeline systems and similar facilities shall be penalized
25
with a fine of not less than Fifty Thousand Pesos (Php50,OOO.OO) but not more than One
27


Million Pesos (Phpl,OOO,OOO.OO) or imprisonment of at least six (6) months but not more
2
than two (2) years, or both at the discretion of the court: Provided, That nothing in this
3
paragraph shall preclude the court from ordering the closure of the facility until such time
4
that the mandatory requirements have been met.
5
(b) Failure to secure the required PNS Certificate for LPG cylinders shall be penalized
6
with a fine of Five Thousand Pesos (Php5,OOO.OO) for an individual or Ten Thousand Pesos
7
(PhplO,OOO.OO) for a corporation, for each non-compliant cylinder used and distributed to
8
consumers, or imprisonment of at least six (6) months but not more than two (2) years, or
9
both at the discretion of the court: Provided, That the maximum fine to be imposed shall be
10
Five Hundred Thousand Pesos (Php500,OOO.OO) for an individual and One Million Pesos
II
(Phpl,OOO,OOO.OO) for a corporation: ·Provided, further, That the second and subsequent
12
violations shall be penalized with both fine and imprisonment as provided herein: Provided,
13
finally, That this section shall not apply unless the cylinder is in the possession of an illegal
14
refiller or trader.
IS
SEC. 38. Adulteration. - A refiner, importer, refiller, piped gas provider, dealer or
16
retail outlet who mixes LPG with another finished or unfinished petroleum product or stock
17
or with any non-petroleum substance or material that will result in product quality change
18
or in the failure of the LPG to meet the required product specifications of the DOE, shall,
19
upon conviction, be penalized with 'a fine of Ten Thousand Pesos (PhplO,OOO.OO) for an
20
individual and Twenty Thousand Pesos (Php20,OOO.OO) for a corporation, for each cylinder
21
containing adulterated LPG, or imprisonment of at least six (6) months but not more than
22
two (2) years, or both, at the discretion of the court: Provided, That the second and
23
subsequent violations shall be penaliz~dwith both fine and imprisonment: Provided further,
24
That
the
maximum
fine
to
be
imposed shall
be
Five
Hundred
Thousand
Pesos
28


1
(PhpSOO,OOO.OO)
for
an
individual and
One
Million
Pesos
(Php1,000,000.00)
for
a
2
corporation.
3
SEC. 39. Underfilling. - When the net quantity of LPG contained in cylinders sold,
4
transferred, delivered or filled by refillers is less than the cylinder content required by the
5
government at the filling plant, the refiller shall, upon conviction, be penalized with a fine of
6
Five
Thousand
Pesos
(Php5,000.00)
for
an
individual
and
Ten
Thousand
Pesos
7
(PhplO,OOO.OO) for a corporation for each underfilled cylinder or with imprisonment of at
8
least six (6) months but not more than two (2) years, or both, at the discretion of the court:
9
Provided, That second and subsequent violations shall be penalized with both fine and
10
imprisonment: Provided, further, That the maximum fine to be imposed shall be Five
11
Hundred Thousand Pesos (Php500,OOO.OO) for an individual and One Million Pesos
12
(Phpl,OOO,OOO.OO) for a corporation. 'When the net quantity of LPG for sale in cylinders
,
13
sold, transferred, delivered or filled by dealers or retail outlets is less than three tenths of one
14
kilogram (0.30 Kg) or the government-required cylinder content quantity, the dealer or retail
15
outlet shall be penalized with the same fines mentioned earlier in this paragraph.
16
A broken, tampered, absent or .removed seal shall give rise to a presumption that the
17
cylinder is underfilled. A cylinder containing less than the required LPG quantity which is
18
not so identified and set apart or taken out from the sales area by dealers or retail outlets is
19
presumed to be for sale.
20
SEC. 40. Illegal Refilling. - The following shall constitute illegal refilling of LPG
21
cylinders under this Act:
22
(a) Refilling of LPG cylinders by a person or entity other than the rightful owner
23
thereof, unless specific permission is granted by the owner for such refilling as evidenced by
24
a written contract or similar instmment;
29


(b) Refilling of cylinder with LPG of a brand, trademark, trade name, or registered
2
business name other than that of the LPG brand owner indicated on the cylinder tank,
'.
3
otherwise called "pirate filling" or "cross-filling";
4
(c) Refilling of LPG cylinder without embossed markings or other indication of the
5
brand or trade name thereof, or bearing defaced, tampered or illegible markings contrary to
6
the mandatory labeling and stamping requirements under this Act;
7
(d) Refilling of LPG cylinder which is due for repair, re-qualification or scrappage as
8
provided in this Act, or is subject to the recall or prohibition order of the LPG Board;
9
(e) Filling directly from LPG tank trucks without the use of approved filling
10
machines;
II
(f)
Refilling LPG from one cylinder to another without usmg the prescribed
12
equipment;
13
(g) Backyard refilling of cylinders other than in properly designed LPG refilling
14
plants;
15
(h) Filling cylinders with products or substances other than LPG in an effort to
16
achieve the correct net weight;
17
(i) Any other refilling of LPG cylinders in violation of the mandatory requirements
18
or prescribed standards under this act; and
19
(j)
Unauthorized loading ofbulk LPG tanks in industrial accounts.
20
It shall also be prohibited for any marketer, dealer or retail outlet to knowingly sell
21
illegally refilled cylinders.
22
An industry participant found guilty of illegal refilling under this Section shall, upon
23
conviction, be penalized with a fine ofTen Thousand Pesos (PhplO,OOO.OO) for an individual
24
and Twenty Thousand Pesos (Php20,000.00) for a corporation, for each illegally-filled
25
cylinder, or imprisonment of at least six (6) months but not more than two (2) years, or both,
30


I
at the discretion of the court: Provided That second and subsequent violations shall be
2
penalized with both fine and imprisotfment: Provided, further, That the maximum fine to be
3
imposed shall be Five Million Pesos. (Php5,000,000.00) for an individual and Ten Million
4
Pesos (Php10,000,000.00) for a corporation.
5
SEC. 41. Unauthorized Trading ofLPG Cylinders. - Any industry participant who,
6
without the consent of the cylinder owner, stores empty LPG cylinders in quantities in
7
excess of those allowed by the DOE, through cylinder swapping and other similar industry
8
practices, and exchanges, barters, sells, distributes or otherwise transfers ownership and/or
9
possession thereof to a person or entity other than the cylinder owner and without the
10
authority of the cylinder owner shall, upon conviction, be penalized with a fine of Three
II
Thousand Pesos (Php3,000.OO) for an individual and Six Thousand Pesos (Php6,OOO.00) for
12
each illegally-stored or sold empty cylinder, or imprisonment of at least six (6) months but
13
not more than two (2) years, or both, at the discretion of the court: Provided, That second
14
and subsequent violations shall be penalized with both fine and imprisonment. Provided,
IS
further, That the maximum fine to be imposed shall be Three Hundred Thousand Pesos
16
(Php300,OOO.OO) for an individual and Six Hundred Thousand Pesos (Php600,000.00) for a
17
corporation.
18
SEC. 42. Tampering ofLPG Cylinders and Similar Acts. - Any person who tampers,
19
alters, or modifies LPG cylinders through any means such as, but not limited to, changing the
20
cylinder valve, repainting, and re-labeling, by any person other than the cylinder owner
21
shall, upon conviction, be penalized with a fine of Five Thousand Pesos (Php5,OOO.OO) for an
22
individual and Ten Thousand Pesos (PhplO,OOO.OO) for a corporation, for each tampered or
23
altered LPG cylinder, or imprisonment of at least six (6) months but not more than two (2)
24
years, or both, at the discretion of the court: Provided, That second and subsequent
25
violations shall be penalized with both fine and imprisonment: Provided, further, That the
31


maximum fine to be imposed shall be Five Million Pesos (Php5,000,000.00) for an individual
2
and Ten Million Pesos (Php10,000,000.00) for a corporation.
3
SEC. 43. Illegal Possession ofLPG Cylinder Seal. - Any person found in possession of
4
LPG cylinder seals, including the seals already used in the cylinders without authority from
5
the cylinder owner or its authorized refiller shall, upon conviction, be penalized with a fine
6
of Five Thousand
Pesos
(Php5,000.00)
for
an individual and Ten Thousand Pesos
7
(Phpl0,000.00) for a corporation, for each LPG seal found in its or his possession, or
8
imprisonment of at least six (6) months but not more than two (2) years, or both, at the
9
discretion of the court: Provided, That second and subsequent violations shall be penalized
10
with both fine and imprisonment: Provided, further, That the maximum fine to be imposed
11
shall be Five Million Pesos (Php5,OOO,OOO.OO) for an individual and Ten Million Pesos
12
(Phpl0,000,000.00) for a corporation.
13
SEC. 44. Failure to Comply with Weighing Device Requirements. - A refiner,
14
importer, refiller, dealer or retail butlet who fails to comply with the requirements
15
pertaining to weighing devices under Chapter III, shall be penalized with a fine of Ten
16
Thousand Pesos (PhplO,OOO.OO) for an individual or Twenty Thousand Pesos (Php20,000.00)
17
for a corporation.
18
SEC. 45. Overloading. - A hauler who loads and transports, or permits the loading and
19
transportation of LPG cylinders in quantities greater than the rated capacity of the vehicle or
20
in such a manner that endangers the life and safety of its passengers or the public, shall be
21
penalized with a fine of Twenty Thousand Pesos (Php20,OOO.00) for an individual and Forty
22
Thousand Pesos (Php40,OOO.OO) for a corporation: Provided, That the penalties provided
23
herein shall be without prejudice to its. liability under other laws for any damage or injury to
24
person or property.
32


SEC. 46. Importation of Used or Second-Hand LPG Cylinders. - Any person who
2
imports used or second-hand LPG cylinders or containers shall, upon conviction. be
3
penalized with a fine of at least One Hundred Thousand Pesos (PhPlOO,OOO.OO) or Three
4
Thousand Pesos
(PhP3,000.00) per cylinder or container, whichever is higher,
and
S
imprisonment of at least six (6) years and one (1) day to twelve (12) years.
6
SEC. 47. Sale or Distribution to Non-complying Persons or Entities. - A cylinder
7
manufacturer, refiner, importer, refiller, dealer or retail outlet who knowingly sells or
8
distributes LPG or LPG cylinders or LPG Seals to persons or entities committing any of the
9
prohibited acts provided in this Act and in such other issuances or orders to be issued by the
10
DOE, shall upon conviction, be penalized for each sale or distribution with a fine of not less
11
than One Hundred Thousand Pesos (PhplOO,OOO.OO) but not more than Five Hundred
12
Thousand Pesos (Php500,000.00) or imprisonment of at least six (6) months but not more
13
than two (2) years, or both at the discretion of the court.
14
SEC. 48. Pilferage ofLPG. - Any person who pilfers LPG, upon conviction, shall be
IS
penalized with a fine of One Million Pesos (Phpl,OOO,OOO.OO) for an individual and Two
16
Million Pesos (Php2,000,000.00) for a corporation or imprisonment of at least six (6) months
17
but not more than two (2) years, or both, at the discretion of the court: Provided, That
18
second and subsequent violations shall be penalized with both fine and imprisonment:
19
Provided, further, That the maximum fine to be imposed shall be Five Million Pesos
20
(Php5,000,000.00) for an individual and Ten Million Pesos
(PhplO,OOO,OOO.OO) for a
21
corporation.
22
SEC. 49. Suspension or Revocation of Business License or Permit. - The penalties
23
provided herein shall be without prejudice to the suspension or revocation of the business
24
license of such person by the appropriate local government unit, within, the same year for
25
which such business license was granted.
33


1
SEC. 50. Imposition ofAdministrative Penalty. - The DOE may, in addition to or in
2
lieu of the institution of a criminal action in a court of law. impose an administrative penalty
3
within the range of Twenty Thousand Pesos (P20,000.00) up to Five Hundred Thousand
4
Pesos (P500,000.00) for each offense in this Chapter and such other violations of this Act.
5
SEC. 51. "Strike Three" Penalty. - Any person convicted with finality of violating the
6
provisions of this Act for three (3) consecutive instances shall be perpetually disqualified
7
from engaging in any activity in the LPG industry.
8
SEC. 52. Publication ofPersons Convicted ofViolations ofthis Act. - The DOE shall,
9
on a quarterly basis, publish in a newspaper of general circulation, the names of industry
lO
players convicted with finality of violations of this Act.
11
SEC. 53. Violations by Juridical Entities. - If the violation is committed by a
12
corporation, partnership, association or other juridical entity, the penalty of imprisonment
13
shall be imposed on the responsible directors or officers thereof. If the offender is an alien,
14
he shall be deported immediately, wit~out further proceedings, after service of sentence.
,
15
SEC. 54. Prosecution Under Separate Laws. - Prosecution under this Act shall be
16
without prejudice to any liability for 'violation of any provision of the Revised Penal Code,
17
Republic Act No. 9514, otherwise known as the "Revised Fire Code of the Philippines of
18
2008," Republic Act No. 8293, otherwise known as the "Intellectual Property Code of the
19
Philippines," and other applicable laws. The fines provided in this Chapter shall be without
20
prejudice to any other legal claims or damages which any injured party suffers as a result of
21
any of the enumerated prohibited acts under this Chapter.
CHAPTER VI
EDUCATION AND RESEARCH
22
SEC. 55. Usage Requirements for Customers and End-users. - The DOE and the DTI
23
shall jointly undertake educational and information dissemination activities to enhance
24
customer awareness among LPG consumers and end-users. In addition to such educational
34


programs, the DOE and/or the DTI, after consultation with the LPG industry participants,
2
may prescribe rules and regulations in'relation to the following:
3
(a) For industrial or large end-users, installation of signs at storage facilities;
4
(b) Use of only branded, legally-filled and certified LPG cylinders; and
5
(c) Installation of LPG appliances and devices approved by the DTI: Provided, That
6
such appliances and devices shall be ip.stalled only by qualified servicemen as provided in
7
this Act,
8
SEC. 56. Public Infonnation Canpaign. -
The DOE, in coordination with the
9
Philippine Information Agency, the bILG and such other appropriate government agencies,
10
shall jointly develop and implement an effective strategy for the
dissemination of
11
information to the public about LPG, cylinder quality and safety.
12
SEC. 57. Development Research.. - The DOE, in coordination with the DOST and the
13
DTI, shall conduct study and research for the purpose of developing more efficient methods
14
of providing safe, clean and hazard-fre.e LPG to consumers.
.CHAPTER VII
FINAL PROVISIONS
15
SEC. 58. Implementing Rules and Regulations. - Unless otherwise provided in this
16
Act, the DOE, in consultation with the DTI, other appropriate agencies, the LPG industry
17
participants, and consumer groups, ,shall be the lead agency with the responsibility to
18
formulate and issue the necessary implementing rules and regulations within one hundred
19
eighty (180) days from the effectivity of this Act.
20
SEC. 59. Transition Phase. ...:. IIi' order to provide a smooth implementation of the
21
monitoring and supervisory mechanisms provided herein, the industry participants shall be
22
given a grace period of one hundred eighty (180) days from the effectivity of this Act, within
23
which to comply with the provisions hereof: Provided, That during the transition period, the
24
industry participants shall continue to be bound and made liable under the provisions of
35


existing laws, rules and regulations not otherwise repealed by this Act. Industry participants
2
already legally engaged in business upon the effectivity of this Act and who are required to
3
secure a Standards Compliance Certificate prior to the renewal of their business licenses as
4
provided in Section 15 of this Act, shall not be required to obtain a Standards Compliance
5
Certificate for the duration of the grace period.
6
SEC. 60. Legal Assistance to Public OHicials. - Public officials or other authorized
7
persons acting under the direction of the Secretaries of the DOE, the DTI, the DILG and
8
other concerned government agencies shall be provided with free legal assistance, liability
9
insurance and other forms of protection and indemnification for all costs and expenses
10
reasonably incurred by such persons, in connection with any civil or criminal action, suit or
11
proceeding to which they may be or have been made a party by reason of the performance of
12
their functions or duties, unless they ~~e finally adjudged in such action or proceeding to be
,
13
liable for gross negligence or misconduct or grave abuse of discretion.
14
SEC. 61. Separability Clause. - Ie for any reason, any chapter, section or provision of
15
this Act shall be declared unconstitutional, illegal or invalid, such parts not affected thereby
16
shall remain in full force and effect.
17
SEC. 62. Repealing Clause. - All laws, decrees, executive orders, proclamations and
18
administrative regulations, or parts thereof inconsistent herewith are hereby repealed or
19
modified accordingly.
20
SEC. 63. Effectivity Clause. - This Act shall take effect after fifteen (15) days after its
21
publication in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,
36