Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

7251

HOUSE BILL NO.

Introduced by HONORABLE WES GATCHALIAN

AN ACT
PROVIDING FOR THE NATIONAL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR THE PHILIPPINE LIQUEFIED PETROLEUM GAS INDUSTRY

EXPLANATORY NOTE

Regulation of the Liquefied Petroleum Gas (LPG) industry is one of the relatively
overlooked sectors in the Philippines. Since the enactment of Republic Act No. 8479,
or the “Downstream Oil Industry Deregulation Act of 1998” - which seeks to
“liberalize and deregulate the downstream oil industry in order to ensure a truly
competitive market under a regime of fair prices, adequate and continuous supply of
environmentally-clean and high quality petroleum products” - two (2) major issues
have troubled the industry. First, the prices of LPG have more than doubled, despite
the existing mandate of the Department of Energy (DOE) to regulate such. Second,
accidents due to lack of regulation has caused the destruction of lives and properties

of many Filipinos.

At least in the foreseeable future, LPG will continue to be a basic necessity in a
household. As legislators are well aware of this, they have tried to come up with
several measures that will address the issue. For instance, during the Seventeenth
(17) Congress, the Technical Working Group (TWG) convened by the House
Committee on Energy approved a substitute bill on the safe operations of the LPG
industry. During the Sixteenth (16) Congress, a bill similar to the one I am filing
now was approved on third reading and subsequently transmitted to the Senate for
appropriate action. Now, as the need to strengthen and streamline the laws and
regulations overseeing the LPG industry in the country remains relevant, this
Congress must once again revisit the measure and build on the progress achieved
before.


This bill seeks to provide a national energy policy and regulatory framework
that would govern the following activities in the LPG value chain: importation,
refining, refilling, transportation, conveyance, distribution, and marketing of LPG,
and manufacturing, requalifying, exchanging, and swapping of LPG pressure vessels.
By providing a comprehensive legal framework, this bill seeks to institute reforms in
the LPG industry, address concerns in health, safety, security, and the environment,
and effectively ensure that that consumer welfare remains paramount.

In view of the foregoing considerations, approval of this bill is earnestly

sought.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session
HOUSE BILL No. 7251
ee
Introduced by HONORABLE WES GATCHALIAN
ee

AN ACT
PROVIDING FOR THE NATIONAL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR THE PHILIPPINE LIQUEFIED PETROLEUM GAS INDUSTRY

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be referred to as the “LPG Act.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
protect the interests of consumers, ensure their general welfare, and to establish
standards of conduct for business. Towards this end, the State shall:

(a) Ensure the health, safety, security, environmental, and quality standards
for the importation, refining, refilling, transportation, distribution, and
marketing of liquefied petroleum gas (LPG), and the manufacture,
requalification, exchange, swapping, or improvement of LPG pressure
vessels;

(b) Institute reforms in the existing standards of conduct and codes of
practice for the LPG industry;

(c)_ Uphold the right of consumers to freely choose the LPG brand they want
to purchase; and

(d) Promote awareness regarding the health, safety, security, environmental,
and quality standards for the proper use of LPG pressure vessels and
ancillary equipment through information dissemination and consumer

education campaigns.

SEC. 3. Scope and Application. - This Act shall apply to the following:
(a) Importation, refining, refilling, transportation, distribution, and
marketing of LPG;


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(b) Manufacture, requalification, exchange, swapping, improvement, or
scrappage of LPG pressure vessels; and

() Safe operations of all LPG products for residential, commercial, industrial,
and automotive use, and the entire LPG industry.

SEC. 4. Definition of Terms. - For purposes of this Act, the following terms

shall be defined as stated below:

(a) Accreditation refers to the formal recognition of competency given by the
Department of Trade and Industry (DTI), through a certificate of
accreditation, stating that a manufacturer, re-qualifier, or repairer of LPG
pressure vessels has complied with all the documentary requirements,
quality and safety standards, and the specific Philippine National
Standards (PNS) prescribing the method of manufacture, requalification,
or repair of LPG pressure vessels and other applicable PNS;

(b) Activity refers to:

() Refining, manufacturing, importing, exporting, _ shipping,
transporting, hauling, storing, refilling, distributing, marketing, and
selling of LPG for residential, commercial, industrial, or automotive
use, and

(i) Manufacturing, importing, distributing, selling, _re-qualifying,
repairing, and scrappage of LPG pressure vessels, authorized LPG
seals, and other ancillary equipment;

(6) Alteration refers to any act of converting, transforming, or resizing of local
or imported LPG pressure vessels from its original size or design including
replacement or removal of existing registered brand owner’s markings,
grinding, flattening, application of putty, replacement of collar, revalving,
unauthorized repainting, replacement of foot-rings, or re-labeling;

(d) Ancillary equipment refers to parts, devices, and accessories necessary for
the safe and proper operation of an LPG pressure vessel such as valves,
hoses, and regulators;

(e) Authorized LPG seal refers to the security cover placed on the gas outlet of
an LPG cylinder, canister, or cartridge, of the type that necessitates
breaking or destroying before LPG can flow out of the cylinder, canister,
or cartridge. It shall have a distinctive design, symbol, emblem, or mark,
identifying the owner of the LPG cylinder, canister, or cartridge;

() Auto-LPG refers to LPG intended to fuel, propel, or otherwise provide
propulsion to motor vehicles;


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(g) Auto-LPG dispensing station refers to a facility or business establishment,
which sells auto-LPG directly to motor vehicle users. It may be a
standalone establishment, or located within or operated with a retail
outlet;

(h) Brand owner refers to a natural or juridical person owning a duly
registered brand name, logo, mark, or distinction registered with the
Intellectual Property Office of the Philippines;

() Bulk consumer refers to a duly-authorized natural or judicial person who
purchases LPG at large quantities for its own use, requires bulk storage
of LPG, and does not, in any way, engage in the distribution or retail of
LPG to the end consumer;

() Bulk supplier refers to a duly-authorized natural or juridical person who
engages in the sale or distribution of LPG in large quantities and requires
bulk storage of LPG;

(k) Certificate of accreditation refers to the written document issued by the DTI
stating that a manufacturer, re-qualifier, or repairer of LPG has complied
with all the requirements and standards necessary to operate as such;

() Certificate of conformity refers to the written document issued by the DTI
stating that the LPG pressure vessel has complied with existing PNS and
other applicable laws, rules, and regulations;

(m) Certificate of non-coverage (CNC) refers to a written document issued by the
DOE attesting to the fact that an LPG industry participant is a bulk
consumer, and is not engaged in any other activity that will require a
license to operate;

(2) Container refers to any pressure vessel filled with auto-LPG permanently
attached to, and is an inherent and integral part of a motor vehicle;

(0) Crossfilling refers to the filling of LPG cylinders by a natural or juridical
person other than the brand owner or its duly authorized refiller;

(p) Cylinder, canister, or cartridge owner refers to a natural or juridical person
whose brand, mark, trade name, or business name is embossed,
engraved, or otherwise permanently indicated on the LPG cylinder,
canister, or cartridge in the manner prescribed by the DTI;

(q) Cylinder refers to a portable and refillable pressure vessel, with water
capacity of not less than one hundred fifty (150) liters, designed for the
storage of LPG;

(®) Dealer refers to any person involved in the trading or sale of LPG cylinders

to retail outlets or directly to end consumers;


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(s) Defective pressure vessels refer to pressure vessel that are uncertified,
damaged, or dilapidated due to the existence of corrosion or pitting, dents,
cuts, gouges, digs, bulges, leaks, and similar defects rendering such
pressure vessel unsafe, injurious, or dangerous for distribution or use,
and creating a substantial risk of injury to the general public;

(t) End consumer refers to any person, who purchases LPG for their own
consumption. For purposes of this Act, an end consumer shall not include
a bulk consumer;

(u) Hauler refers to a natural or juridical person involved in the transportation,
distribution, and delivery of LPG cylinders and canisters through the use
of authorized vehicles;

(¥) Importer refers to a natural or juridical person engaged in the importation
of LPG for processing, sale, or own use;

(w) License to operate refers to a certification issued by the DOE that a natural
or juridical person intending to engage in business for a specific activity
as an LPG industry participant has complied with all the documentary
requirements, and quality and safety standards, rules, and regulations
prescribed by the DOE and other pertinent government agencies for such
an activity;

(x) LPG refers to liquefied petroleum gas which consists of commercial
propane gas or commercial butane gas, or a mixture of both gases, with
properties conforming to the standards set forth in the PNS and other
applicable laws, rules, and regulations;

(y) LPG canister or cartridge refers to a portable and non-refillable pressure
vessel, with a water capacity of less than one (1) liter, designed for the
storage of LPG or a mixture of gases;

(2) LPG industry participants refers to natural or juridical persons engaged in
the activities defined in Section 4(b) of this Act;

(aa) LPG pressure vessel refers to a canister, cartridge, container, or cylinder

designed for the storage of LPG;
(bb) Marketer refers to a natural or juridical person engaged in the sale of
LPG under its own brand name, in bulk, or as a retail outlet;

(cc) Permanent mark refer to the embossed trade or brand name of the
brand owner which appears on the LPG cylinder, as prescribed by the
DTI;

(dd) Pilferage refers to the theft of LPG in quantities from a large receptacle

such as a tanker, lorry, or similar installations;


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(ee)

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PNS refers to the standards promulgated by the DTI Bureau of
Philippine Standards (BPS) pertaining to product specifications, test
methods, terminologies, procedures, or practices pursuant to Republic
Act No. 4109, otherwise known as An Act to Convert the Division of
Standards Under the Bureau of Commerce into a Bureau of Standards,
to Provide for the Standardization and/or Inspection of Products and
Imports of the Philippines and for Other Purposes, and other applicable
laws, rules, and regulations;

Qualified service person refers to an individual who has successfully
completed an approved training course for LPG service persons in a
training school duly recognized and accredited by the Philippine
government;

Refiller refers to a cylinder, canister, or cartridge owner engaged in the
business of refilling its own LPG cylinder, canister, or cartridge. It shall
also refer to a natural or juridical person duly authorized by the
cylinder, canister, or cartridge owner to engage in the business of
refilling LPG cylinders, canisters, or cartridges on its behalf,

Refilling plant refers to a facility with LPG bulk storage and refilling
equipment, used for refilling LPG into cylinders;

Refiner refers to a natural or juridical person who refines LPG through
distillation, conversion, and treatment of crude oil and other naturally
occurring petroleum hydrocarbons;

Re-qualification refers to the process by which an LPG pressure vessel
is inspected, tested, and re-evaluated in accordance with the prescribed
specifications and standards to determine its viability for continued
use, distribution, repair, or scrappage, whichever may be applicable;
Re-qualifier refers to a person engaged in the business of re-
qualification duly accredited by the DTI;

Repair refers to the removal and replacement of parts of LPG pressure
vessels, or the performance of any other corrective and restorative
measures in accordance with the prescribed method under the PNS,
with the end goal of restoring the viability and fitness of LPG pressure
vessels for public use;

Repairer refers to a natural or juridical person engaged in the business
of repair duly accredited by the DTT;

Retail outlet refers to a natural or juridical person involved in the sale
of LPG cylinders directly to end consumers;


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Scrappage refers to the destruction of defective LPG pressure vessels
declared by a re-qualifier to be unfit for use. The destruction may be
done by cutting the pressure vessel at various parts or by flattening to
render the pressure vessel unusable or unrecyclable;

Substandard refers to any pressure vessel which does not conform with
the applicable PNS;

Tare weight refers to the net weight of an LPG pressure vessel excluding
its contents as engraved in the collar and painted in the body thereof.
It shall be expressed in kilograms in accordance with guidelines issue
by the DTI; and

Uncertified pressure vessel refers to an LPG pressure vessel that does

not comply with the PNS.

CHAPTER IL
ROLE OF GOVERNMENT AGENCIES

SEC. 5. Lead Agency. - The DOE shall be the primary government agency
responsible for the implementation and enforcement of this Act. The DOE shall
regulate, supervise, and monitor the LPG industry and all LPG industry participants
to ensure compliance with the health, safety, security, and environmental standards
and the applicable PNS.

‘SEC. 6. Powers and Functions of the Department of Energy. - In addition to its
mandate under Republic Act No. 7638, otherwise known as the Department of
Energy Act of 1992, and Republic Act No. 8479, otherwise known as the Downstream
Oil Deregulation Act, the DOE shall have the following powers and functions:

(a) Implement and ensure compliance with the quality and safety standards

prescribed in the PNS for:

@

(i)

Refining plants, refilling plants, depots, storage areas,
transportation facilities, retail outlets, and other related facilities or
premises of LPG industry participants, and

LPG pressure vessels in circulation, whether filled or unfilled, which
are for distribution and sale to dealers, retail outlets, and end

consumers;

(b) Issue the following:

tO)

Licenses to operate and certificates of non-coverage for qualified LPG
industry participants, and suspend or revoke these, after due notice


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(ii)

(ii)

and hearing, pursuant to Sections 18 and 19, and Chapter IX of this
Act,

Closure or cease and desist orders, after due notice and hearing, to
any concerned LPG industry participant found to have committed
any of the prohibited acts under Chapter IX of this Act,

Guidelines for the following:

(1) Disposal of LPG and LPG pressure vessels together with the
Department of Energy and Natural Resources (DENR),

(2) Motor vehicles used in the transportation of LPG in bulk, LPG
from one LPG industry participant to another, and filled LPG
cylinders, canisters, and cartridges to end consumers, and the
registration thereof, together with the DOTr, pursuant to
Section 28 of this Act,

(3) Accreditation of drivers and attendants for LPG delivery
vehicles upon prior consultation with LPG industry
participants and other government agencies concerned,

(4) Installation of signage at storage facilities of bulk suppliers and
bulk consumers, and

(5) _ Installation of LPG appliances and devices approved by the DTI:
Provided, That such appliances and devices shall be installed

only by qualified service persons;

() Approve and authorize LPG seals of brand owners and marketers;

(d) Direct LPG brand owners, to periodically submit cylinders for

()

requalification pursuant to Section 7 of this Act;

Investigate motu proprio or upon report of any person, impose and collect

fines and penalties, initiate and resolve the necessary administration

action, or initiate the necessary criminal action against the responsible

persons for the following:

@
(ii)

Any violation of this Act by any LPG industry participant, and
Incidents of injury or damage to person or property, caused by or
attributable to the improper refilling, storage, transport,
distribution, handling, manufacturing, re-qualifying, repairing of
LPG pressure vessels, and improper refining, dispensing, and use of
LPG;

() Confiscate, recall, seize, impound, and prohibit the following:

io)

LPG seals not compliant with standards, rules, and regulations

including those in illegal possession or use, and


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(i) | Substandard, defective, unsafe, injurious or dangerous LPG
products, underfilled, illegally refilled, or defective pressure vessels,
ancillary equipment, auto-LPG vehicles, and other appurtenances
that are found in violation of the provisions of this Act and pursuant
to Section 25 thereof;

(@) Exercise visitorial powers to ensure the effective implementation of this
Act, which includes the power to scrutinize the records of LPG industry
participants and inspect their premises, filled LPG pressure vessels, LPG
seals, and ancillary equipment;

(h) Require LPG industry participants to submit written or electronic forms
or reports as it may deem necessary and reasonable pursuant to Section
23 of this Act,

() Create, maintain, and regularly update a central database of LPG industry
participants and an inventory of existing and projected LPG supply levels
pursuant to Section 24 of this Act;

(Regularly publish in a newspaper of general circulation the names of LPG
industry participants found liable for prohibited acts pursuant to Chapter
IX of this Act;

(k) Determine the strategy, rules, regulations, and procedure for the
improvement of LPG pressure vessels already in the market at the time of
effectivity of this Act, upon consultation with LPG industry participants
and other concerned government agencies, with the end in view of
ensuring the safety of end consumers;

() Undertake with DTI and DILG information, education, and
communication activities on health, safety, security, environmental, and
quality standards for LPG, LPG pressure vessels, auto-LPG vehicles,
ancillary equipment, other appurtenances, and motor vehicles
transporting LPG to enhance awareness among end customers, local
government units (LGUs), and the Philippine National Police (PNP);

(m) Conduct research and development with the Department of Science and
Technology towards LPG pressure vessel improvement and more efficient
methods of providing safe, clean, and hazard-free LPG to end consumers;
and

(n) Exercise such other powers and functions as may be necessary or
incidental to attaining the objectives of this Act.


SEC. 7. Powers and Functions of the Department of Trade and Industry (DTI).
~ In addition to its mandate under existing laws, the DTI shall have the following

powers and functions:

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(a) Develop, formulate, promulgate, review and revise, as may be necessary,
the PNS for LPG, LPG pressure vessels, and other ancillary equipment;

(b) Accredit manufacturers, re-qualifiers, and repairers of LPG pressure
vessels through the issuance of a certificate of accreditation;

() Determine frequency of re-qualification of LPG pressure vessels;

(d) Inspect, evaluate, and confirm compliance with the PNS and fitness for
sale and public distribution of local and imported LPG pressure vessels
and ancillary equipment, and re-qualified LPG pressure vessels through
the issuance of a certificate of conformity;

(e) Grant and revoke, if warranted, the certificates of accreditation and
conformity of LPG industry participants and their respective LPG pressure
vessels pursuant to Section 19 of this Act; and

() Undertake with the DOE and the Department of Interior and Local
Government (DILG) information, education, and communication activities
on health, safety, security, environmental, and quality standards for LPG,
LPG pressure vessels, auto-LPG vehicles, ancillary equipment, other
appurtenances, and motor vehicles transporting LPG to enhance
awareness among end customers, LGUs, and the PNP.

SEC. 8. Powers and Functions of the Department of Interior and Local

Government. ~ In addition to its mandate under existing laws, the DILG shall have

the following powers and functions:

(a) Issue the appropriate guidelines and regulations governing the fire safety
of LPG facilities through the Bureau of Fire Protection (BFP);

(b) Undertake with DTI and DILG information, education, and
communication activities on health, safety, security, environmental, and
quality standards for LPG, LPG pressure vessels, auto-LPG vehicles,
ancillary equipment, other appurtenances, and motor vehicles
transporting LPG to enhance awareness among end customers, LGUs, and
the PNP;

(c) Coordinate and cooperate with the DOE orderly and effective
implementation of this Act, rules, regulations, and other issuances
promulgated pursuant thereto, together with LGUs and the Philippine
National Police (PNP); and


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(@) Extend all the necessary assistance to the DOE with respect to the
enforcement of measures to attain the objectives of this Act.

SEC. 9. Powers and Functions of the Department of Transportation (DOT). — In
addition to its mandate under existing laws, the DOTr shall issue the appropriate
guidelines and regulations governing the following:

(a) Auto-LPG motor vehicles;

(b) Motor vehicles used in the transportation of LPG in bulk, LPG from one

LPG industry participant to another, and LPG filled cylinders, canisters,
and cartridges to end consumers, together with the DOE, pursuant to
Section 28 of this Act;

(Q) Shipping or water transport of LPG and LPG filled pressure vessels

through the Maritime Industry Authority.

SEC. 10, Powers and Functions of Local Government Units. - In addition to
their mandate under existing laws, LGUs shall have the following powers and
functions:

(a) Assist the DOE in providing an area for impounded LPG pressure vessels;

(b) Suspend or revoke, upon due notice and hearing, the business permit or
license of an LPG industry participant upon the issuance by the DOE of a
notice of suspension or revocation of its license to operate pursuant to
Section 6 of this Act;

(6) Communicate to DOE the suspension or revocation of the business permit
or license of an LPG industry participant within five (5) days from such
suspension or revocation; and

(d) Issue guidelines on the motor vehicles used in the transportation of LPG
in bulk, LPG from one LPG industry participant to another, and LPG in
cylinders, canisters, or cartridges to end consumers pursuant to Section
28 of this Act.

SEC. 11. Powers and Functions of the Philippine National Police. - In addition
to their mandate under existing laws, the PNP shall, upon request of the DOE,
provide security to life and property in the course of the implementation of this Act:
Provided, That only the personnel or unit of the PNP duly deputized by the DOE shall
have the authority to enforce this Act: Provided further, That the PNP shall not, on
its own, conduct LPG inspections without a request from the DOE, or confiscate LPG
cylinders unless duly authorized by a warrant issued by the courts.

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SEC. 12. Powers and Functions of Other Government Agencies. - In addition

to its mandate under existing laws, the DENR shall issue, together with the DOE,
guidelines for the disposal of LPG and LPG pressure vessels. In addition to its
mandate under existing laws, the Department of Public Works and Highways (DPWH)
shall issue guidelines and requirements motor vehicles used in the transportation of
LPG in bulk.

CHAPTER III
RRESPONSIBILITIES OF LPG INDUSTRY PARTICIPANTS

SEC. 13. Bulk Supplier. - In addition to the provisions under this Act, a bulk

supplier shall:

shall:

(a) Ensure adequate and stable supply of LPG in bulk;

(b) Make certain that production, storage, receiving, and loading equipment
and facilities are in safe operating conditions at all times;

() Enter into contracts or agreements only with bulk consumers with a valid
certificate of non-coverage;

(@) Submit a notarized copy of its contract or agreement with a bulk consumer
to the DOE within a reasonable period of time from the execution thereof;
and

(©) Register with DOE all vehicles used for the transportation of LPG in bulk,
and comply with guidelines pursuant to Section 28 of this Act.

SEC. 14. Refiller. - In addition to the provisions under this Act, a refiller

(a) Fill cylinders, canisters, and cartridges under its own brand and its duly-
authorized brands;

(b) Fill LPG cylinders, canisters, and cartridges accurately as to the required
exact net content of the LPG cylinder;

(c) Test the weight and conduct a leak test of every LPG cylinder, canister,
and cartridge before it leaves the refilling plant;

(d) Only refill cylinders, canisters, and cartridges that comply with the PNS;

(c) Refuse to refill single-use canisters and cartridges or those not designed
or intended for refilling of LPG due to non-compliance with the PNS, or not
certified or allowed by the DTI;

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1 () Observe safe LPG handling practices;
2 (g) Periodically check compliance of dealers and retails outlets with the
3 following:
4 () Content requirements of LPG sold; and
5 (ii) Proper calibration and sealing of weighing devices.
6
7 SEC. 15. Brand Owner or Marketer. - In addition to the provisions under this
8 Act, a brand owner or marketer shall:
9 (a) Carry its own brand of LPG;
10 (b) Ensure the following:
11 (i) Adequate and timely supply of LPG to its dealers, retail outlets, and end
2 consumers, and
13 (ii) Correct weight of LPG filled cylinders, canisters, or cartridges delivered
4 to its dealers, retail outlets, and end consumers;
15 (¢) Procure new LPG cylinders, canisters, or cartridges only from reputable
16 and duly licensed LPG cylinder manufacturers;
7 (d) Only utilize LPG cylinders, canisters, or cartridges that comply with the
18 PNS;
19 (ce) Emboss all new LPG cylinders, canisters, or cartridges with its registered
20 brand name;
21 () Utilize a distinguishable color and marking scheme for all its LPG
2 cylinders, canisters, or cartridges and register the same with the DOE;
23 (g) Register its LPG seal and seal manufacturer with the DOE;
24 (h) Maintain and repair all LPG cylinders, canisters, or cartridges under its
25 own brand name through duly licensed and accredited re-qualifiers and
26 repairers;
27 () Provide servicing, delivery, and technical assistance to all its dealers, retail
28 outlets, and end consumers;
29 () Observe safe LPG handling practices;
30 (k) Register with the DOE all vehicles used for the transportation of its LPG
31 and LPG cylinders, canisters, or cartridges, and comply with guidelines
32 pursuant to Section 28; and
33 (). Periodically check compliance of dealers and retail outlets with the
34 following:
35 (i) Content requirements of LPG sold, and
36 (ii) Proper calibration and sealing of weighing devices.
37

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SEC. 16. Dealer. -In addition to the provisions under this Act, a dealer shall:

(a) Enter into a contract or agreement with a duly licensed brand owner or
marketer;

(b) Exclusively carry the brand of LPG of its refiller or marketer;

() Only sell LPG in cylinders, canisters, or cartridges with an authorized LPG
seal of its refiller or marketer;

(d) Provide appropriate weighing devices which shall accurately measure LPG
filled cylinders, canisters, or cartridges;

() Ensure the correct weight of LPG filled cylinders, canisters, or cartridges
delivered to its retail outlets and end consumers;

() Put up display and storage facilities within its area of operation;

(@) Provide servicing, delivery, and technical assistance for its retail outlets
and end consumers;

(h) Observe safe LPG handling practices;

(Register with the DOE all vehicles used for the transport of LPG and LPG
cylinders, canisters, or cartridges, and comply with guidelines pursuant
to Section 28 of this Act;

() Ensure that each filled LPG cylinder, canister, or cartridge conforms with
the PNS prior to acceptance from its duly licensed brand owner or
marketer; and

(m) Periodically check compliance of dealers and retail outlets with the
following:

( Content requirements of LPG sold, and
(ii) Proper calibration and sealing of weighing devices.

SEC. 17. Retail Outlet. - In addition to the provisions under this Act, a retail

outlet shall:

(a) Sell the brands of LPG filled cylinders, canisters, or cartridges it is
authorized to carry by virtue of its contract or agreement with duly
licensed brand owners, marketers, or dealers;

(b) Only sell LPG in cylinders, canisters, or cartridges with authorized LPG
seals of its duly licensed brand owner, marketer, or refiller;

(©) Provide appropriate weighing devices which shall accurately measure LPG
cylinders, canisters, or cartridges;

(4) Request the brand owner, marketer, or dealer for a qualified LPG service

person to render services to its end consumers;

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(c) Install and provide in its respective establishment fire extinguishers,
printed materials, and posters showing procedures on how to prevent and
react to LPG related accidents;

() Observe safe LPG handling practices; and

(@) Ensure that each LPG filled cylinder, canister, or cartridge conforms with
the PNS prior to acceptance from the brand owner, marketer, or dealer,

CHAPTER IV
LICENSES, PERMITS, AND OTHER BUSINESS REQUIREMENTS

SEC. 18. License to Operate. - Every LPG industry participant shall secure
a license to operate for a specific activity prior to the commencement of construction
or commercial operation, and shall publicly post such license to operate in its
business establishment or premises. In the event that the LPG industry participant
intends to engage in a new activity outside of its current license to operate, it shall
secure another license to operate for such new activity. All LPG industry participants
shall conduct business only with LPG industry participants with a valid license to

operate for the specific activity they are engaged in.

‘The DOE shall have the exclusive authority to issue the license to operate. It shall
be valid for a period of three (3) years or any such period as may be determined by
the DOE. The license to operate shall be a mandatory requirement for the grant or
renewal of any license or permit issued by the LGU to the LPG industry participant.

Any person already engaged in any activity as defined herein, at the time of the
effectivity of this Act, shall obtain a license to operate within six (6) months from the
promulgation of this Act’s implementing rules and regulations.

SEC. 19. Certificate of Non-Coverage. - A bulk consumer shall secure a
certificate of non-coverage from the DOE in lieu of a license to operate: Provided,
‘That a bulk consumer who engages in another activity as an LPG industry
participant shall be required to secure a license to operate for such activity: Provided
further, That a certificate of non-coverage does not exempt the bulk consumer from
compliance with quality and safety requirements and standards.

SEC. 20. Certificate of Accreditation and Certificate of Conformity. ~ An LPG
industry participant who engages in manufacturing, re-qualifying, repairing, or

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scrapping of LPG pressure vessels shall obtain a certificate of accreditation from DTI
prior to the commencement construction or commercial operation, and annually
thereafter. Any LPG industry participant already engaged in manufacturing, re-
qualification, repair, or scrappage of LPG pressure vessels at the time of effectivity of
this Act shall secure a certificate of accreditation from the DTI within six (6) months
from the promulgation of this Act’s implementing rules and regulations.

A manufacturer shall obtain a certificate of conformity from the DTI for the LPG
pressure vessels it produces. An LPG industry participant already engaged in
manufacturing at the time of effectivity of this Act shall secure a certificate of
conformity for the pressure vessels it has produced and is currently producing within
six (6) months from the promulgation of this Act’s implementing rules and

regulations.

CHAPTER IV
AUTO-LPG DISPENSING STATIONS

SEC. 21. Installation of LPG Containers and Retailing of auto-LPG. - Any LPG
industry participant who installs LPG containers, retrofits motor vehicles with LPG
containers, or operates an auto-LPG dispensing station shall be required to comply
with the requirements, quality and safety standards, rules, and regulations issued
by the DOTr pursuant to Section 9 of this Act and other pertinent government

agencies.

CHAPTER V
OWNERSHIP OF LPG CYLINDERS AND LPG CONTAINERS

SEC. 22. Ownership of LPG Cylinders, Canisters, and Cartridges. ~The brand
owner whose permanent mark appears on the LPG cylinder, canister, or cartridge
shall be the presumed owner thereof. The presumption applies to LPG cylinders,
canisters, or cartridges subject of exchange or swapping, or which are in the
possession of an authorized refiller, marketer, dealer, retail outlet, or re-qualifier, or
such other person duly authorized by the brand owner.

The brand owner shall have the obligation to ensure that all of its LPG cylinders,
canisters, or cartridges comply with all the required quality and safety standards,

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: Provided, That receipt
by the DOE of a verified notice or report from the brand owner regarding any lost,

rules, and regulations before they are released for distributio:

stolen, or missing LPG cylinder, canister, or cartridge shall prima facie relieve the
brand owner of the obligation to ensure the quality and safety of such LPG cylinder,
canister, or cartridge.

SEC. 23. Ownership of LPG Containers. - An LPG container shall be
permanently installed inside the motor vehicle, and shalll be an inherent and integral
part of the vehicle. The ownership of the LPG container shall be with the owner of
the motor vehicle to which the LPG container is permanently installed.

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CHAPTER VI
MONITORING AND ENFORCEMENT MECHANISMS.

SEC. 24. Reports and Disclosures to the DOE. - In requiring LPG industry
participants to submit written or electronic forms or reports pursuant to Section 6
of this Act, the DOE shall be prohibited from sharing, disclosing, or making available
to the public any information, document, plan, and report constituting trade secrets,
proprietary data, and other legitimate commercial information which are confidential

or privileged in nature.

SEC. 25. Central Database of LPG Industry Participants. - The central
database created by DOE pursuant to Section 6 of this Act shall be updated on a
monthly basis. It shall include the following information:

(a) Corporate, business, or trade name of the LPG industry participant;

(b) Registered brand name or logo for LPG, LPG pressure vessels, faci

and equipment;

(c) Contractual agreements with other LPG industry participants;
(d) _ List of lost, stolen, and missing LPG cylinders;

()_ Violations committed and incidents relating to such violations; and
() Other relevant information as may be determined by the DOE.

CHAPTER VII
DECLARATION OF LPG CYLINDER AS DEFECTIVE

SEC. 26. Declaration of LPG Cylinder, Canister, or Cartridge as Defective. ~
When the DOE finds, motu proprio or upon complaint of any person, that an LPG
cylinder, canister, or cartridge is uncertified, defective, injurious, unsafe, dangerous,
or substandard, it shall, after due notice, issue the appropriate order for its
immediate confiscation, recall, seizure, impoundment, or prohibition from public
sale or distribution. The concerned LPG cylinder, canister, or cartridge owner shall
be afforded an opportunity to be heard from the issuance of such order, for the
purpose of determining the propriety of the confiscation, recall, seizure,
impoundment, or prohibition of the LPG cylinders, canisters, or cartridges. The DOE
shall terminate the proceedings and make a final determination on whether the LPG
cylinder, canister, or cartridge is uncertified, defective, injurious, unsafe, dangerous,
or substandard within thirty (30) calendar days from the issuance of the order for
confiscation, recall, seizure, impoundment, or prohibition.

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Filled LPG cylinders which are confiscated, recalled, seized, or impounded and found
by the DOE to pose an imminent threat to the public or in danger of exploding shall
be disposed of without serving prior notice to the owners thereof. The DOE shall
notify the owner of such fact within five (5) calendar days after such disposition.

SEC. 27. LPG in Unauthorized Canisters or Cartridges. - It shall be unlawful
for any person to refill, sell, trade, or distribute LPG in a single-use canister or
cartridge not designed or intended for LPG, or not in compliance with existing PNS.

CHAPTER VIII
‘TRANSPORT AND CONVEYANCE OF LPG

SEC. 28. Transport of LPG. - All motor vehicles utilized in the transportation
of LPG and filled LPG cylinders, canisters, and cartridges shall obtain a Certificate
of Road Worthiness from the Land Transportation Office prior to the issuance and
renewal of a license to operate, and shall comply with the guidelines of DOE and
DOTr pursuant to Sections 6 and 9 of this Act.

An LPG industry participant who transports LPG in bulk, shall only use motor
vehicles that have complied with the guidelines and met the requirements prescribed
by the DOE, DOTr, DILG-BFP, DPWH, and the concerned LGU.

An LPG industry participant who transports LPG in cylinders, canisters, and
cartridges, to another LPG participant, shall only use motor vehicles that have
complied with the guidelines and met the requirements prescribed by the DOE,
DOTr, and DILG-BFP.

‘An LPG industry participant who transports LPG in cylinders, canisters, and
cartridges to end consumers, shall only use motor vehicles that have complied with
the guidelines and met the requirements prescribed by the DOE, DOTr, DILG - BFP,
and the concerned LGU.

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CHAPTER IX
PROHIBITED ACTS

SEC. 29. Prohibited Acts. - Any natural or juridical person, whether an LPG

industry participant or otherwise, shall be prohibited from the following acts:

(a)
(b)

()

(a)

0)

(@)

(h)

tu)

)

Engaging in an activity without a valid license to operate;
Engaging in an activity as a bulk consumer without a valid certificate of
non-coverage;

Manufacturing LPG pressure vessels without a valid certificate of

conformity for the LPG pressure vessels;

Manufacturing LPG pressure vessels and LPG seals, or re-qualifying,

repairing, or scrapping of LPG pressure vessels without a certificate of

accreditation;

Transacting with, or selling or distributing LPG products, LPG cylinders,

canisters, or cartridges, or LPG seals to an LPG industry participant who

does not have a valid license to operate or certificate of accreditation, as
the case may be;

Importing used or second-hand LPG pressure vessels without securing

an authority to import from the DTI;

Failing to comply with the standards and requirements on:

(i) Safety design for refining plants, refilling plants, depots, storage areas,
transportation facilities, retail outlets, warehouses, and other related
facilities or premises of LPG industry participants,

(ii) Safety practices,

(iii) Products, and

(iv) Weighing devices;

Manufacturing of LPG pressure vessels using substandard materials;

Selling and distributing substandard LPG pressure vessels;

Manufacturing, selling, or distributing LPG pressure vessels without the

necessary markings required by the PNS, or the standard governing LPG

pressure vessels manufacture, requalification, and repair;

Selling or distributing refilled single-use canisters or cartridges which

have been previously filled with butane, or not designed or intended for

refilling of LPG due to non-compliance with the PNS, or not certified or
allowed by the DTI;

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(m)

(n)

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(a)

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Selling or distributing LPG filled cylinders, canisters, or cartridges
without a seal, with a tampered, fake, or broken seal, inappropriate or
unauthorized seal, or with a seal not belonging to the brand owner;
Destroying, tampering, altering, or modifying LPG pressure vessels
through any means such as changing the LPG pressure valve, repainting,
and re-labeling: Provided, That this shall not be a prohibited act if it is
done by the brand owner;

Stamping wrong, misleading, incorrect, or inaccurate information on
LPG pressure vessels.

Selling or distributing LPG in means, methods, and equipment other
than what is prescribed under this Act;

Filling LPG pressure vessels with LPG mixed with another finished or
unfinished petroleum or non-petroleum product, substance, or material
resulting in the failure of the LPG to meet the required product standards
and requirements: Provided, That possession of LPG pressure vessels
containing adulterated LPG shall be prima facie evidence of violation of
this provision;

Refilling LPG in single-use canisters or cartridges which have been
previously filled with butane, or not designed or intended for refilling of
LPG due to non-compliance with the PNS, or not certified or allowed by
the DTI;

Hauling, loading, transporting, or permitting the loading and
transportation of LPG cylinders, canisters, or cartridges in quantities
greater than the rated capacity of the motor vehicle or in such a manner
that endangers the life and safety of its passengers or the public;
Selling or storing LPG more than the volume prescribed by the DOE;
Selling or storing empty LPG cylinders, canisters, and cartridges in
excess of those allowed by the DOE, through LPG cylinder swapping and
other similar industry practices;

Manufacturing or selling LPG pressure vessels carrying a brand name,
logo, mark, or distinction without the express approval of the registered
brand owner;

Selling, exchanging, bartering, distributing, or transferring ownership or
possession of empty LPG cylinders, canisters, and cartridges to a natural
or juridical person other than the brand owner without the consent of

the said brand owner;

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(aa)

(bb)

(cc)

(dd)

Possessing LPG seals, including the seals already used in LPG pressure
vessels without authority from the LPG cylinder, canister, or cartridge
owner or its duly authorized refiller;

Filling of bulk tanks in refilling plants by bulk suppliers other than the
owner of the tanks;

Requiring end consumers to exclusively purchase LPG from a brand
owner, marketer, refiller, dealer, or retail outlet;

Refusing to refund the deposit on the LPG cylinder to any consumer, in
the case of an LPG brand owner and its duly authorized dealer or retail
outlet;

Pilfering LPG;

Failing or refusing to publicly post its license to operate;

Failing to submit periodic reports as may be required pursuant to Section
6 of this Act; and

Refusing, preventing, or obstructing the inspection of its premises and

records.

SEC. 30. Underfilling. - The following acts undertaken by the following

persons shall constitute underfilling of LPG pressure vessels:

(a)

(b)

The refiller when the net quantity of LPG contained in an LPG pressure
vessel sold, transferred, delivered, or filled is less than the LPG pressure
vessel content required at the filling plant; and
‘The dealer or retail outlet when the net quantity of LPG in a pressure
vessel intentionally sold, transferred, or delivered is less than the
required LPG pressure vessel content quantity.

A broken, tampered, absent, or removed seal shall be considered prima facie evidence
of underfilling.

SEC. 31. Mlegal Refilling. - The following acts shall constitute illegal refilling of

LPG pressure vessels:

fa)

(b)

()

Filling LPG pressure vessels with products or substances other than LPG
in an effort to achieve the correct net weight;

Filling of LPG pressure vessels directly from LPG tank trucks without the
use of approved filling machines;

Cross-filling;

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(a)

()

C)

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(h)

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Refilling of LPG from one LPG pressure vessel to another without using

the prescribed equipment;

Refilling of LPG pressure vessels other than in duly licensed LPG refilling

plants;

Refilling of LPG pressure vessels:

(i) By a person other than the brand owner or its duly authorized person
evidenced by a written contract or similar instrument;

(i) Bearing defaced, tampered, or illegible markings contrary to the
mandatory labeling and stamping requirements under this Act;

(iii) Due for repair, re-qualification or scrappage, or are subject to a recall
or prohibition order of the DOE;

(iv) For end consumers, whether for household or commercial use, by
auto-LPG dispensing stations;

Refilling of single-use canisters or cartridges;

Refilling of canister or cartridges, not designed or intended for refilling of

LPG due to non-compliance with the PNS, or not certified or allowed by

the DTI;

Unauthorized loading of bulk LPG tanks; and

Any other filling or refilling of LPG pressure vessels in violation of the

requirements and standards under this Act.

SEC. 32. Hoarding. - An LPG industry participant who, before a price increase

or in times of tight supply, unduly accumulates LPG and LPG products beyond its

normal inventory level and unreasonably limits or refuses to dispose of, sell, or
distribute LPG or LPG products to the general public, even if the buyer or consumer
has the ability to pay in cash for the LPG or LPG products shall be liable for hoarding.
The determination of the normal inventory level shall be reckoned from the time the

LPG industry participant started the business. The following conditions shall be

prima facie evidence of hoarding:

(a)

(b)

The LPG industry participant has stocks of LPG or LPG products fifty
percent (50%) higher than its normal inventory capacity; and

The LPG industry participant unreasonably limits, refuses, or fails to sell
the same to the general public at the time of discovery of the stocks.

SEC. 33. Penalties. - Any person found in violation of the following acts shall

have the following administrative and criminal penalties:

(a)

Section 29 (a) and (b):

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(b)

(©)

(i) First offense - Fine of five thousand pesos (P5,000.00) for each day of
operation without the required license or certificate,

(i Second offense Fine of ten thousand pesos (P10,000.00) for each day
of operation without the required license or certificate, and

(iii) Third offense - Fine of twenty thousand pesos (P20,000.00) for each
day of operation without the required license or certificate, or in the
case of Section 29 (aa) for every pressure vessel imported, and
permanent disqualification from engaging in any activity as an LPG
industry participant;

Section 29 (c}, (d), (e), and (A):

(i) First offense - Fine of ten thousand pesos (P10,000.00) for every
pressure vessel or seal manufactured, re-qualified, repaired,
scrapped, imported, transacted, sold, or distributed without a valid
license to operate, certificate of accreditation, certificate of
conformity, or authority to import, whichever is applicable, and
closure until the required licenses and permits are accomplished,

(ii) Second offense - Fine of twenty thousand pesos (P20,000.00) for every
pressure vessel or seal manufactured, re-qualified, repaired,
scrapped, imported, transacted, sold, or distributed without a valid
license to operate, certificate of accreditation, certificate of
conformity, or authority to import, whichever is applicable, closure
until the required licenses and permits are accomplished, and upon
conviction, imprisonment of at least six (6) months but not more than
two years, and

(iii) Third offense - Fine of thirty thousand (P30,000.00) for every pressure
vessel or seal manufactured, re-qualified, repaired, scrapped,
imported, transacted, sold, or distributed without a valid license to
operate, certificate of accreditation, certificate of conformity, or
authority to import, whichever is applicable, closure, permanent
disqualification from engaging in any activity as an LPG industry
participant, and upon conviction, imprisonment of at least one (1)
year but not more than three (3) years;

Section 29 (g) (i), (ii), and (iii):

(i) First offense - Fine of three hundred thousand pesos (P300,000.00),

(ii) Second offense - Fine of five hundred thousand pesos (P500,000.00),

suspension of license to operate, and upon conviction,

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(d)

e)

(U)

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imprisonment of at least one (1) year but not more than three (3)

years,
i) Third offense ~ Fine of one million pesos (P1,000,000.00), closure,

permanent disqualification from engaging in any activity as an LPG
industry participant, and upon conviction, imprisonment of at least
three (3) years but not more than six (6) years;

Section 29 (g) (iv):

(i) First offense - Fine of ten thousand pesos (P10,000.00),

(i) Second offense - Fine of twenty thousand pesos (P20,000.00),
suspension of license to operate, and

(iii) Third offense — Fine of thirty thousand pesos (P30,000.00), closure,
and permanent disqualification from engaging in any activity as an
LPG industry participant;

Section 29 (h), (i), (j), (), (1), (m), (n), (p), and (a)

(i) First offense - Fine of twenty-five thousand pesos (P25,000.00) for
every LPG pressure vessel manufactured, sold, distributed,
destroyed, tampered, altered, or modified, and confiscation of the
said LPG pressure vessels,

{ii) Second offense - Fine of fifty thousand pesos (P50,000.00) for every
LPG pressure vessel manufactured, sold, distributed, destroyed,
tampered, altered, or modified, confiscation of the said LPG
pressure vessels, suspension of the license to operate, and upon
conviction, imprisonment of at least one (1) year but not more than
three (3) years,

(iii) Third offense - Fine of one hundred thousand pesos (P100,000.00)
for every LPG pressure vessel manufactured, sold, distributed,
destroyed, tampered, altered, or modified, confiscation of the said
LPG pressure vessels, closure, permanent disqualification from
engaging in any activity as an LPG industry participant, and upon
conviction, imprisonment of at least three (3) years but not more
than six (6) years;

Section 29 (0): Fine of one million pesos (P1,000,000.00), closure, and

upon conviction, imprisonment of at least three (3) years but not more

than six (6) years;

Section 29 (1):

(i) First offense - Fine of one hundred thousand pesos (P100,000.00),

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(h)

@

(ii) Second offense - Fine of two hundred thousand pesos (P200,000.00),
suspension of license to operate, and upon conviction,
imprisonment of at least six (6) months but not more than two (2)
years, and

(iii) Third offense - Fine of three hundred thousand pesos (P300,000.00),
closure, closure, permanent disqualification from engaging in any
activity as an LPG industry participant, and upon conviction,
imprisonment of at least three (3) years but not more than six (6)
years;

Section 29 (s), (t), and (x):

(i) First offense - Fine of one hundred thousand pesos (P100,000.00),

(ii) Second offense - Fine of two hundred thousand pesos (P200,000.00),
suspension of the license to operate, and upon conviction,
imprisonment of at least six (6) months but not more than two (2)
years, and

(iii) Third offense - Fine of three hundred thousand pesos (P300,000.00),
closure, permanent disqualification from engaging in any activity
as an LPG industry participant, and upon conviction,
imprisonment of at least three (3) years but not more than six (6)
years;

Section 29 (u), (v), and (w}:

(i) First offense — Fine of ten thousand pesos (P10,000.00) for every LPG
pressure vessel or seal manufactured, sold, exchanged, bartered,
distributed, transferred ownership or possession of, or possessed,
whichever is applicable,

(ii) Second offense- Fine of twenty thousand pesos (P20,000.00) for every
LPG pressure vessel or seal manufactured, sold, exchanged,
bartered, distributed, transferred ownership or possession of, or
possessed, whichever is applicable, suspension of license to
operate, and upon conviction, imprisonment of at least six (6)
months but not more than two (2) years, and

(iii) Third offense — Fine of thirty thousand pesos (P30,000.00) for every
LPG pressure vessel or seal manufactured, sold, exchanged,
bartered, distributed, transferred ownership or possession of, or
possessed, whichever is applicable, closure, permanent
disqualification from engaging in any activity as an LPG industry

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participant, and upon conviction, imprisonment of at least one (1)
year but not more than three (3) years;

() Section 29 (2):

(i) First offense - Fine of five thousand pesos (P5,000.00) for every LPG
cylinder and a warning,

(ii) Second offense - Fine of ten thousand pesos (P10,000.00) for every
LPG cylinder and a suspension of the license to operate, and

(iii) Third offense - Fine of twenty thousand pesos (P20,000.00) for every
LPG cylinder, closure, and permanent disqualification from
engaging in any activity as an LPG industry participant;

(<) Section 29 (y) and (aa): Fine of one million pesos (P1,000,000.00) and
upon conviction, imprisonment of at least six (6) months but not more
than two (2) years. In the event that the violator is an LPG industry
participant, the administrative penalty will include closure and
permanent disqualification from engaging in any activity as an LPG
industry participant;

() Sections 29 (bb) and (ce):

(i) First offense - Fine of twenty thousand pesos (P20,000.00),

(ii) Second offense - Fine of fifty thousand pesos (P50,000.00),
suspension of its license to operate, and

(iii) Third offense — Fine of one hundred thousand pesos (P100,000.00),
closure, and permanent disqualification from engaging in any
activity as an LPG industry participant;

(m) Section 29 (dd):

(i) First offense - Fine of three hundred thousand pesos (P300,000.00),

(ii) Second offense - Fine of five hundred thousand pesos (P500,000.00),
suspension of license to operate, and

(iii) Third offense - Fine of one million pesos (P1,000,000.00), closure,
and permanent disqualification from engaging in any activity as an
LPG industry participant;

(n) Sections 30 and 31:

() First offense — Fine of ten thousand pesos (P20,000.00) for each
underfilled or illegally refilled pressure vessel,

(ii) Second offense - Fine of twenty thousand pesos (P30,000.00) for each
underfilled or illegally refilled pressure vessel, and upon conviction,
imprisonment of at least six (6) months but not more than two years,

and

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(iii) Third Offense - Fine of thirty thousand pesos (P40,000.00) for each
underfilled or illegally refilled pressure vessel, closure, permanent
disqualification from engaging in any activity as an LPG industry
participant, and upon conviction, imprisonment of at least one (1)

year but not more than three (3) years.

The illegally refilled LPG cylinders in Section 31 (c), (4), (¢), (9, (g), (h), and
(i) shall be confiscated outright; and

(0) Section 32: Fine of thirty thousand pesos (P30,000) for each LPG
product beyond its normal inventory capacity, and upon conviction, fine
of not less than one million pesos (P1,000,000.00) but not more than ten
million pesos (P10,000,000.00), permanent disqualification from
engaging in any activity as an LPG industry participant, and
imprisonment of at least one (1) year but not more than three (3) years.

If the offender is an alien, the person shall be deported immediately,
without further proceedings, after the service of sentence.

SEC. 34. Violations by Juridical Entities. — If the violation is committed by a
corporation, partnership, association or other juridical entity, the penalty of
imprisonment shall be imposed on the responsible directors or officers thereof. Any
new juridical entity formed by persons or agents of such persons previously found in
violation of the prohibited acts under this Chapter for the the third time, shall be
permanently disqualified from engaging in any activity as an LPG industry
participant.

SEC. 35. Suspension, Cessation, and Closure. — Nothing in this Chapter
shall preclude the DOE from ordering the suspension or cessation of the operation
of the facility, or the closure thereof until such time that the mandatory requirements
or corrective measures directed by the DOE have been met.

SEC. 36. Initiation of administrative action by the DOE. - An administrative
action shall be initiated by the DOE through the issuance of a show cause order to
the LPG industry participant, giving the latter the opportunity to explain in writing
within the period prescribed by DOE: Provided, That the entire administrative
proceeding shall not exceed sixty (60) calendar days from issuance of a show cause

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order to the final resolution by the DOE. The DOE shall have the discretion to
conduct a hearing pertaining to the violation, or to impose an outright penalty based

on the merits of the written explanation.

SEC. 37. Imposition of preventive suspension order. - During the pendency
of an administrative proceeding, the DOE may suspend the operations of an LPG
industry participant within a maximum period of sixty (60) calendar days to prevent
undue interference on the ongoing investigation and tampering of evidence.

SEC. 38. Impoundment and Disposition of Impounded evidence. - The DOE
and other duly authorized law enforcement agencies shall be authorized to impound
LPG, LPG products, LPG pressure vessels, ancillary equipment, motor vehicles used
in the transportation of LPG and filled LPG pressure vessels, and other
appurtenances as evidence of the violations under this act. The final disposition of
the impounded evidence shall be subject to the final resolution of the administrative

or criminal case, whichever may be applicable.

CHAPTER XI
FINAL PROVISIONS

SEC. 39. - Sharing of Fines and Penalties. - The city or municipality where
the principal place of business of an LPG industry participant is located shall be
allotted a forty percent (40%) share of the proceeds from fines and penalties collected
by the DOE from the concerned LPG industry participant: Provided, that the
remaining sixty percent (60%) shall be used by the DOE to implement the provisions
of this act.

SEC. 40. Utilization of LGU Share. - The LGU shall use its share from the
fines and penalties collected pursuant to Section 44 of this Act exclusively for the
purpose of transporting, hauling, storing, decanting, and disposing confiscated LPG,
LPG products, pressure vessels, ancillary equipment, and other appurtenances.

SEC. 41. Implementing Rules and Regulations. - The DOE together with the
DTI, and in consultation with the concerned government agencies and stakeholders,
shall promulgate the implementing rules and regulations of this Act within sixty (60)
days from its effectivity. All guidelines, regulations, and other issuances mandated

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to be promulgated in this Act shall be issued within sixty (60) days from the
promulgation of this Act’s implementing rules and regulations.

SEC. 42. Transition Period. - The DOE shall, upon prior consultation with
the LPG industry participants and other government agencies and taking into
account data obtained from LPG industry participants and other sources, determine
the appropriate transition period to allow for compliance by all LPG industry
participants with the objectives of this Act: Provided, That such transition period
shall not be beyond six (6) months from the effectivity of this Act’s implementing

rules and regulations.

SEC. 43. Congressional oversight. — The Joint Congressional Energy
Commission shall exercise oversight powers over the implementation of this Act.

SEC. 44. Construction and Interpretation. - Any doubt in the interpretation
of any provision in this Act shall be interpreted in favor of the interests of the
consumers particularly to ensure access to reasonably priced LPG and the safety of

the consumers and the general public.

SEC. 45. Separability Clause. - If for any reason, any chapter, section or
provision of this Act shall be declared unconstitutional, illegal, or invalid, such parts
not affected thereby shall remain in full force and effect.

SEC. 46. Repealing Clause. - All laws, decrees, executive orders,
proclamations and administrative regulations, or parts thereof inconsistent herewith
are hereby repealed or modified accordingly.

SEC. 31. Effectivity Clause. - This Act shall take effect after fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved,

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