HOUSE WF REPRESENTATIVES
- RECEIVED
pore 0 JUN 2018

ive /2f2

By! A

Republic of the Philippines
HOUSE OF REPRESENTATIVES.
QUEZON CITY

SEVENTEENTH CONGRESS
First Regular Session

REGISTRATION UNIT

nouse pitwo, 646 | euLs AND INDEX SERVICE

Introduced by Representative Arnel U. Ty

EXPLANATORY NOTE

This bill secks to establish the monitoring and supervisory framework for the Liquefied Petroleum
Gas (LPG) Industry in order to strengthen and enhance existing standards and mechanisms against deceptive
and harmful practices and other hazards to public health and safety arising under a deregulated downstream oil
industry.

This bill also seeks to address the problem posed by almost 6 million dilapidated, unsafe, substandard
and defective LPG cylinders in the market (according to the data of LPG Industry Association Inc.) by creating
a white cylinder exchange program for the benefit of the consumers and to prevent and minimize fire incidents
leading to loss of lives and properties. LPG is a widely used fuel commodity in the Philippines and most
Filipino households use LPG for cooking.

This bill shall likewise give additional powers and functions to the DOE as the lead agency, The DOE
in coordination with DTI, DILG, DOJ and LPG industry participants shall promulgate the implementing rules
and regulation to establish the monitoring and supervisory framework to ensure compliance with national
product quality standards of LPG cylinders and to prevent illegal practices in the LPG industry for the benefit
of the consumers.

This bill is consistent with the “Downstream Oil Industry Deregulation Act of 1998” promoting the
State policy to liberalize and deregulate the downstream oil industry in order to ensure a truly competitive
market and to promote and encourage the entry of new participants in the downstream oil industry.

During the Sixteenth (16) Congress, this bill was approved on Third Reading by the House of
Representatives on August 24, 2015 and was subsequently transmitted to the Senate on August 27, 2015 for its
appropriate action,

Likewise, under Section 48 of the Rules of the House of Representatives under the Sixteenth
Congress, *. in case of bills or resolutions previously filed in the immediately preceding Congress
which have been considered and reported out by a particular committee, the same may be disposed of as matter
already reported upon the approval of majority of the Members of the committee present, there being a
quorum.”

In view of the foregoing, passage of this bil is earnestly requested.

HON. ARXEL U. TY



AUS

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

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 646

Introduced by Representative ARNEL U. TY

ESTABLISHING THE REGULATORY FRAMEWORK FOR THE SAFE
OPERATIONS OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY,
DELINEATING THE POWERS AND FUNCTIONS OF VARIOUS
GOVERNMENT AGENCIES, DEFINING AND PENALIZING CERTAIN ACTS,
AND FOR OTHER PURPOSES

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “LPG
Industry Regulation and Safety Act.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the
state to protect the interest of consumers, ensure their general welfare and
establish standards of conduct for business and industry.

Towards this end, the state shall:

a) Establish a regulatory framework for the importation, refining, refilling,
transportation, distribution and marketing of liquefied petroleum gas (LPG),
and the manufacture, requalification, exchange, swapping or improvement
of LPG cylinders;

b) Establish standards of conduct and codes of practice for LPG businesses;
and

c) Address quality and safety concerns and uphold the right of consumers to
freely choose the LPG brand they want to purchase.


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The State shall also promote national awareness and education
regarding the quality and safety requirements for the proper use of LPG
cylinders and ancillary equipment to further consumer protection.

SEC. 3. Scope and Application. - This Act shall govern the
importation, refining, refilling, transportation, distribution and marketing of
LPG, the manufacture, requalification, exchange, swapping or improvement
of LPG cylinders, and safe operations of the LPG industry, which cover all
activities and businesses related to LPG products for household,
commercial, industrial or automotive use (Auto-LPG) and cylinders or
containers for LPG.

SEC. 4. Definition of Terms. - As used in this Act:

(a) "Accreditation" refers to the formal recognition of competency given
by the Philippine Accreditation Bureau (PAB) of the Department of Trade
and Industry (DTI) that a re-qualifier of LPG cylinders has complied with the
existing Philippine National Standards (PNS) prescribing the general
requirements for the competence of testing and calibration laboratories, the
method of re-qualification of steel cylinders for LPG and any other applicable
PNS;

(b) "Alteration" refers to any act of converting, transforming or resizing
of local or imported LPG cylinder or container from its original size or design
including, but not limited to, replacement or removal of existing and
embossed or stamped registered brand owner's markings, grinding,
flattening, application of putty, replacement of collar, revalving,
unauthorized repainting, replacement of foot rings, or re-labeling;

() "Ancillary Equipment" refers to equipment, parts and other devices
and accessories necessary and indispensable for the safe and proper
operation of an LPG cylinder or container such as, but not limited to, LPG
cylinder or container valves, hoses and regulators;

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

(e) "Auto-LPG Dispensing Station" refers to an outlet, facility or
business establishment which retails auto-LPG directly to individual end-
users or to the motoring public; the same may stand alone or be located


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within or operated with a liquefied petroleum product (LPP) retail outlet. It
shall be deemed a dealer or retail outlet for purposes of this Act;

() "Brand Owner" refers to a person owning the brand name, logo,
color, mark or distinction as registered with the Intellectual Property Office
of the Philippines (IPOPH);

(g) "Bulk Consumer" refers to any person whose regular use or
consumption of LPG is limited to its own use, and requires bulk storage of
LPG at a volume as may be determined by the Department of Energy (DOE);

(h) "Bulk Supplier" refers to any person who engages in the sale or
distribution of LPG in large quantities as may be determined by the DOE;

(i) "Canister” or “Cartridge” refers to any portable pressure vessel or
container designed or intended for LPG, with water capacity of less than that
of an LPG cylinder;

(j) "Centralized LPG Distribution System" refers to a network of pipes
or similar conduit used for the conveyance of LPG from the piped LPG
provider to consumers confined within the same compound or establishment
such as, but not limited to, shopping malls and condominiums;

(k) “Certification” refers to the written assurance given by the DTI that
the LPG cylinder has complied with the existing PNS or any other standards
issued by the Bureau of Philippine Standards (BPS) pursuant to Republic
Act No. 4109, otherwise known as the “Philippine Standardization Law;”

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

(m) “Container” refers to any pressure vessel permanently installed in
motor vehicles for the storage of LPG for automotive use;

(n) "Cross Filling" refers to the filling of LPG cylinders by a person
other than the brand owner;

(0) “Cylinder or LPG Cylinder” refers to any portable pressure-vessel or
container for LPG designed for the transportation and storage of LPG;

(p) "Cylinder Owner" refers to the owner of the cylinder as shown by
the brand, mark, trade name or business name embossed or engraved or
otherwise permanently indicated on the LPG cylinder in the manner
prescribed by the DTI;


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(q@ "Dealer" refers to any person engaged in the sale or trading of LPG
in cylinders to consumers and /or retail outlets;

(x) "Defective Cylinder" refers to a damaged, unsafe and dilapidated
LPG cylinder due to corrosion or pitting, dents, cuts, gouges, digs, bulges,
leaks and other similar defects that render the LPG cylinder unsafe,
injurious or dangerous for distribution in accordance with the guidelines set
by the DTI, thus creating a substantial risk of injury to the public;

(s) "Hauler" refers to any person engaged in the distribution and
delivery of LPG cylinders from one place to another;

(t) "Importer" refers to any person engaged in the importation of LPG
whether for processing, sale or own use;

(u)"LPG" refers to liquefied petroleum gas, which consists of
commercial propane gas or commercial butane gas or a mixture of the two
gases, with properties conforming to the standards set forth in the existing
PNS or any other standards prescribed by the BPS;

(v)"LPG Industry Participant" refers to any person engaged in
activities or businesses related to:

(1)refining, manufacturing, importing, exporting, shipping,
transporting, hauling, storing, refilling, distributing, marketing
and selling of LPG for household, commercial or industrial, and
automotive (auto-LPG) use; or

(2) manufacturing, importing, transporting, distributing and selling
of LPG cylinders and ancillary equipment including, but not
limited to, LPG cylinder or container and ancillary equipment
manufacturers and importers, re-qualifiers, repairers, scrapping
centers, LPG cylinder or container seal manufacturers and such
other similar persons or entities;

(w)"Marketer" refers to any person engaged in the sale of LPG, whether
in bulk or retail, under its own brand name;

(x) “Person” refers to a natural or juridical entity registered under
Philippine laws;

(y) "Philippine National Standards" or "PNS" refers to the standards
promulgated by the BPS of the DTI relating to product specifications, test


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methods, terminologies and standardization procedures, guidelines or
practices;

(2 "Piped LPG Provider" refers to any person engaged in the business
of supplying or distributing LPG to consumers through a centralized LPG
distribution system, including operators of central storage compounds for
piped LPG or reticulated system facilities;

(aa)"Qualified Serviceman" refers to an individual who has been
trained, qualified and certified by the Bureau of Fire Protection (BFP) or any
deputized agency thereof, or to an individual who has successfully
completed an approved training course for LPG servicemen in a training
school duly recognized and accredited by the Philippine government;

(bb) "Refiller" refers to (1) a service provider authorized by an LPG
cylinder owner to refill LPG cylinders on the latter's behalf, or (2) any person
who refills LPG into one's own LPG cylinders;

(cc) "Refilling Plant" refers to any facility that is used for LPG bulk
storage and refilling LPG into cylinders;

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

(ce) "Re-qualification" refers to the method or procedure by which an
LPG cylinder is subjected to inspection and re-evaluation in accordance with
the prescribed specifications and any other standards prescribed governing
the method of re-qualification of steel cylinders for LPG to determine its
acceptability for continuous use and distribution and subsequent repair or
scrappage, where appropriate;

(f) "Re-qualifier" refers to any person duly accredited by the DTI to
engage in the business of re-qualifying LPG cylinders;

(gg) "Repair" refers to the removal from and replacement of parts or
attachments of LPG cylinders or the performance of any other necessary
corrective and restorative measures pursuant to the PNS, to restore the
fitness of LPG cylinders for refilling, distribution and use;

(hh) "Repairer" refers to any person duly certified by the DTI to engage
in the business of repairing LPG cylinders;


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(ii) "Retail Outlet" refers to any entity that sells LPG in cylinders
directly to a consumer in quantities as may be determined by the DOE;

(jj) “Reticulated System” refers to a means of supplying LPG through
a pipeline network from a centralized cylinder bank or bulk installation to
multiple customers situated in a common locality;

(kk) "Scrappage” refers to the destruction of defective LPG cylinders
declared by a re-qualifier of the DTI to be unfit for use;

(ll) "Seal" refers to the protective cover placed on the valve of an LPG
cylinder; and

(mm) "Tare weight” refers to the net weight of the LPG cylinder,
excluding its contents, as engraved in the collar and painted in the body
thereof and shall be expressed in kilograms in accordance with the
specifications as may be prescribed by the DTI.

CHAPTER II
IMPLEMENTING AGENCIES

SEC. 5. Lead Agency. - The DOE shall be the primary government
agency responsible for the implementation and enforcement of this Act
unless stated otherwise. The DOE shall regulate, supervise, and monitor the
LPG industry and the LPG industry participants to ensure compliance with
the national product quality and environmental, worker safety, and
consumer welfare standards.

SEC. 6. Powers and Functions of the DOE. - In addition to its
powers and functions under existing laws, the DOE shall exercise the
following powers and functions:

(a) Administer and supervise the enforcement and implementation of
this Act;

(b) Implement safety standards prescribed by the DOE or set in the
PNS promulgated by the BPS for refilling plants, depots, storage areas,
transportation facilities and other facilities or business premises of the
owners thereof and retail outlets, and exercise reasonable visitorial powers
in order to inspect and evaluate whether such refilling plants, depots,
storage areas, transportation facilities and other facilities or business

premises and retail outlets comply with such safety standards. During


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inspection, the DOE may scrutinize the records of the concerned LPG
industry participant;

(c) Inspect LPG cylinders in circulation, whether filled or unfilled,
which are for distribution and sale to dealers, retail outlets and end-
consumers to determine conformity with established quality and safety
standards for LPG cylinders;

(@) After the conduct of inspection or investigation, confiscate and
impound immediately substandard, defective, unsafe, injurious or
dangerous LPG and LPG cylinders in circulation, or those that are found in
violation of the provisions of this Act, including underfilled and illegally
refilled LPG cylinders as defined in this Act;

(c) Investigate, motu proprio or upon report of any person, possible
infractions of this Act, initiate the necessary criminal or administrative
actions warranted under the circumstances, enforce administrative
sanctions or penalties, and file the necessary complaints with the proper
court or government agency;

() Implement the Philippine LPG Cylinder Improvement Program;

(g) Direct LPG brand owners to periodically submit cylinders for
requalification, and to secure proper proof of compliance therewith in
accordance with the requirements of the DTI;

(h) Issue and grant licenses to operate to qualified LPG industry
participants in accordance with the implementing rules and regulations to
be issued by the DOE, and suspend or revoke the same, after due notice and
hearing, for committing any of the prohibited acts as provided in this Act;

(i) Issue cease-and-desist orders, as the case may be, to any
concerned LPG industry participants found to have committed any of the
prohibited acts as provided in this Act;

() Impose and collect administrative fines against LPG industry
participants found to have committed any of the prohibited acts as provided
in this Act;

(k) Create and maintain a central database of LPG industry
participants, and an inventory of existing and projected LPG supply levels in
the country subject to the limitations provided for in this Act, which shall be


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updated monthly on its own initiative or through reports of LPG industry
participants;

(l) Investigate and keep a record of incidents of injury or damage to
person or property caused by or attributable to the improper production,
refilling, storage, handling or dispensing or use of LPG for purposes of
prosecuting or filing the appropriate administrative or criminal complaints
against responsible persons;

(m) Investigate, prosecute, and impose penalties for dumping activities
or unauthorized filling of bulk tanks in refilling plants by bulk suppliers
other than the owner of the tanks;

(n) Dispose LPG and LPG cylinders in accordance with the guidelines
on disposal of LPG or LPG cylinders promulgated by the DOE;

(0) Inspect and evaluate LPG cylinder seals and confiscate seals not
complying with the standards and regulations including those in illegal
possession or use thereof; and

(p) 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 DTI. - The DTI shall have the
following exclusive powers and functions:

(a) Develop, formulate, promulgate, review and revise the PNS for LPG,
LPG cylinders and other ancillary equipment;

(b) Inspect and evaluate LPG cylinders, whether manufactured locally
or imported, prior to any sale or distribution to LPG refiners or refillers and
certify to their conformity to the PNS and their fitness for public and sale
distribution;

(c) Inspect and evaluate ancillary equipment, whether manufactured
locally or imported, and certify to their conformity to the PNS and their
fitness for public sale and distribution;

(d) Grant accreditation and certification of conformity to the PNS to re-
qualifiers, repairers, LPG cylinder manufacturers and other independent,
competent, private persons and entities that provide products and services

involving LPG cylinders and revoke the same, if warranted; and


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(e) Extend all the necessary assistance to the DOE to achieve the
objectives of this Act.

SEC. 8. Powers and Functions of the DILG. - To help effectively
implement the provisions of this Act, the Department of Interior and Local
Government (DILG) shall have the following powers and functions:

(a) Coordinate with local government units (LGUs) and the Philippine
National Police (PNP), in close coordination with the DOE and DTI, for the
orderly and effective implementation of this Act: Provided, That only the
personnel or unit of the PNP duly deputized by the DOE, or such special
task force from the different enforcement agencies organized by the DOE for
the purpose, shall have the authority to implement or enforce this Act;

(b) Coordinate and cooperate with the DOE and the DTI in the conduct
of information dissemination to the LGUs and the PNP; and

(c) 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 LGUs. —- The LGUs shall assist the
DOE by providing an adequate and safe area where impounded LPG
cylinders shall be kept.

The LGU shall immediately suspend or revoke the business permit or
license to operate of an LPG industry participant upon the issuance by the
DOE of a notice of suspension or revocation of the license to operate.

SEC. 10. Powers and Functions of the Philippine National Police
(PNP). - The PNP shall, upon request of the DOE or the DTI, provide security
to life and property during the conduct of operations for the implementation
of this Act, such as in the confiscation of LPG cylinders found in violation of
this Act, and during the transport of the confiscated LPG cylinders to the
impounding area: Provided, That the PNP shall not, by itself, conduct LPG
inspections nor confiscate LPG cylinders without a formal request from the
DOE and DTI.

SEC. 11. LPG Monitoring and Enforcement Task Force. —

(a) The DOE may establish an LPG Monitoring and Enforcement Task
Force with the following members:

i. Secretary of the DOE as Chairperson;


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ii, Secretary of the DILG and Secretary of the DTI as members;

iii, Representatives of other government agencies as may be
determined by the Chairperson;

iv. Representatives from LPG industry participants as may be
determined by the Chairperson; and

v. Representatives from the private-sector entities as may be
determined by the Chairperson.

(b) The LPG Monitoring and Enforcement Task Force shall have the
following powers and functions:

j. Assist the DOE in monitoring and compliance standards
inspection as provided in this Act; and
ii. Exercise other powers and functions necessary to give force
and effect to this Act.

(co) Prior to the creation of the LPG Monitoring and Enforcement Task
Force or whenever deemed necessary, the DOE may deputize such other
government agencies to assist in the effective discharge of its functions as
provided in this Act.

CHAPTER III

LICENSES, PERMITS AND OTHER BUSINESS REQUIREMENTS
SEC.12. License to Operate. —

(a) The DOE shall have the exclusive authority to issue the License to
Operate. It shall be site/plant/outlet-specific and valid for such period as
may be determined by the DOE. For purposes of this Act, the License to
Operate shall certify that the applicant has complied with all the
documentary requirements and safety rules and regulations prescribed by
the DOE and other pertinent government agencies.

(b) Any person intending to engage in any activity or business
involving LPG shall secure a License to Operate prior to commencement of
construction and commercial operations.

(c) Any person or entity that subsequently engages in an activity or
business outside of the scope of its License to Operate shall duly notify the
DOE and secure the proper License to Operate from and where deemed
necessary by the DOE for such new activity or business.


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(d) The DOE shall prescribe specific guidelines for compliance of retail
outlets, dealers and haulers in remote areas outside Metro Manila.

(c) An LPG industry participant who has a License to Operate shall
transact business only with an LPG industry participant who likewise has a
License to Operate.

(9 Subject to the provisions of this Act, any person engaged in any
activity or business involving LPG shall obtain a License to Operate:
Provided, however, That those legally engaged shall obtain a License to
Operate within six (6) months from the effectivity of this Act.

SEC. 13. Certificate of Non-Coverage (CNC). - Any person or entity
whose principal business requires consumption of LPG in bulk and which
business operation does not include, in any way, the distribution or retail of
LPG to consumers, such as but not limited to garage-based auto-LPG
stations, centralized LPG distribution systems, shall secure a CNC from the
DOE.

For purposes of this Act, a garage-based auto-LPG operation shall
refer to the operation of a motor vehicle fleet with a number of vehicle units
as may be determined by the DOE and which vehicle units are parked and
serviced in a confined area or garage. The DOE shall prescribe such other
conditions in order that an auto-LPG dispensing activity shall be deemed as
a garage-based operation.

Bulk suppliers shall ensure that their bulk consumers have secured
the necessary CNC prior to entering into any supply contract or agreement
with said bulk consumers.

A copy of such contract or a sworn certification shall be submitted to
the DOE within thirty (30) days from the execution thereof.

The CNC does not in any way preclude compliance with applicable
PNS, requirements of the BFP and other concerned government agencies.

SEC. 14. Suspension or Revocation of License to Operate. — The
DOE shall have the power to suspend or revoke, after due notice and
hearing, the license to operate of any person engaged in any activity or
business involving LPG for the commission of any of the prohibited acts as

provided in this Act.


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SEC. 15. Mandatory Requirement Prior to LGU’s Issuance or
Renewal of Local Government Business License or Mayor’s Permit. -
The license to operate shall be a mandatory requirement for the grant or
renewal of any LGU business license or Mayor’s permit to engage in
business involving LPG regardless of whether the products or activities
constitute the entire or a portion of the business for which a business
license is sought by the applicant.

SEC. 16. Action of LGUs on Suspended or Revoked License to
Operate. - Upon receipt of written notice by the DOE of suspension or
revocation of the license to operate of a concerned LPG industry participant,
the LGU shall immediately suspend or revoke the LGU business license or
Mayor’s permit of said LPG industry participant.

The LGU shall formally communicate to the DOE the fact of such
suspension or revocation within five (5) working days from receipt of the
written notice of revocation of license to operate from the DOE.

SEC. 17. Certificate of Accreditation for Manufacturers, Re-
qualifiers, Repairers of LPG Cylinders and Cylinder Seal
Manufacturers. - Prior to the commencement of its operations and
annually thereafter, any person who intends to engage in the business of
manufacturing, re-qualifying, or repairing LPG cylinders shall obtain a
certificate of accreditation from the DTI.

Any person already engaged in the business of re-qualification, repair,
scrappage of LPG cylinder, and seal manufacturing shall upon the effectivity
of this Act, apply for a certificate of accreditation from the DTI.

CHAPTER IV
AUTO-LPG

SEC. 18. Retailing of Auto-LPG. - Any person who is operating or
intending to operate an auto-LPG dispensing station shall comply with the
following requirements and such other requirements as may be provided in
the implementing rules and regulations of this Act:

(a) An auto-LPG dispensing station shall conform to the existing
standards for the construction and safety operation of such facility and
other standards prescribed by the BPS;


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(b) An auto-LPG dispensing station shall only refill LPG containers for
automotive use which conform to the specifications prescribed in the
existing PNS and installed in vehicles complying with the existing “Code of
Practice for the Use of Liquefied Petroleum Gas (LPG) System in Internal
Combustion Engines” and other standards prescribed by the BPS; and

(c) An auto-LPG dispensing station shall not refill LPG cylinders for
household or commercial use.

CHAPTER V
OWNERSHIP OF LPG CYLINDERS
AND CONTAINERS FOR AUTOMOTIVE USE

SEC. 19. Ownership of LPG Cylinders. - The LPG brand owner
whose permanent mark appears on the LPG cylinder shall be presumed the
owner thereof, irrespective of the party in custody or possession of the LPG
cylinder. Permanent marks refer to the embossed trade or brand name of
the registered owner thereof as prescribed by the DTI for LPG cylinders.

‘The rights and obligations of LPG brand owners shall be provided in
the implementing rules and regulations of this Act.

‘The LPG brand owner shall have the obligation to ensure that its LPG
cylinders comply with all the required quality and safety standards and
specifications before they are released for distribution: Provided, That receipt
by the DOE of a verified notice or report from the LPG brand owner
regarding any lost, stolen, or missing LPG cylinders shall prima facie relieve
the LPG brand owner of the obligation to ensure the quality and safety of
such LPG cylinders. Such report may be rebutted by contrary evidence.

SEC. 20. Ownership of LPG Containers for Automotive Use. —
Containers of LPG for automotive use shall be permanently installed inside
the vehicles and shall be inherent and integral parts of the vehicle.
Ownership of such containers shall be on the vehicle owner.

CHAPTER VI
MONITORING AND ENFORCEMENT MECHANISMS

SEC. 21. Reports and Disclosures to the DOE. - Subject to the
limitations under this Act, the DOE shall have the power and authority to
require LPG industry participants to submit written, electronic or other


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forms of reports or disclosures. Any LPG industry participant who fails to
submit any such report or disclosure within the period and in the manner
prescribed by the DOE shall be penalized under this Act.

SEC. 22. Central Database of LPG Industry Participants. - The
DOE shall, within one (1) year from the effectivity of this Act, create a central
database of LPG industry participants, which shall be updated on a monthly
basis. Subject to the limitations provided herein, information in the central
database shall be made available to the public and through the internet
upon payment of reasonable fees and charges and during office hours. The
central database of LPG industry participants shall include their corporate
or business name or trade name; a list of all directors and officers; principal
office or business address; primary purpose or nature of business;
registered brand name or logo for LPG, LPG cylinder, facilities and
equipment; haulers, dealers, retail outlets and LPG cylinders, seal
manufacturers; violations committed or incidents relating to such violations,
if any; agreements with other LPG industry participants, such as for cross-
filling and similar arrangements; list of lost, stolen or missing LPG cylinders;
and such other relevant information as may be determined by the DOE.

‘The foregoing provisions to the contrary notwithstanding, the right of
LPG industry participants against undue disclosure of information shall be
recognized. Unless necessary for ensuring the safe operations of the LPG
industry, the DOE may not require from the LPG industry participant the
disclosure of intellectual property rights, trade secrets and proprietary data,
or other legitimate commercial information which are confidential or
privileged in nature. Any information, document, plan, and other matter
disclosed necessary for ensuring the safe operations of the LPG industry
which constitute intellectual property, trade secrets or proprietary data or
other legitimate commercial information which are confidential or privileged
in nature, shall not be disclosed by the DOE or any other person having
access thereto to other LPG industry participants or to the public.

The provisions of Republic Act No. 8293, otherwise known as the
“Intellectual Property Code of the Philippines,” and other laws insofar as


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applicable shall continue to apply to information, documents, plans and
other matters disclosed pursuant to this Act.
CHAPTER VII
DECLARATION OF LPG CYLINDER AS DEFECTIVE,
INJURIOUS, UNSAFE OR DANGEROUS

SEC. 23. Declaration of LPG Cylinder as Defective, Injurious,
Unsafe or Dangerous. - When the DOE or DTI, as the case may be, finds,
motu proprio or upon petition of any person, that an LPG cylinder is
defective, injurious, unsafe or dangerous, it shall, after due notice, issue the
appropriate order for its immediate confiscation, recall, seizure,
impoundment or prohibition from public sale or distribution, in which case
the LPG cylinder owner shall be afforded a hearing within forty-eight (48)
hours from issuance of such order, for the purpose of determining the
propriety of the recall and seizure of the LPG cylinders: Provided, That such
a declaration shall be limited to instances when the LPG cylinder is already
filled and already sealed inside a refilling plant, dealer's showroom, retail
outlets, or LPG cylinder transporter: Provided, further, That the DOE or the
DTI shall, within thirty (30) days from termination of administrative
proceedings, make a final determination as to whether or not an LPG
cylinder is defective, injurious, unsafe or dangerous.

Filled LPG cylinders that are found by the DOE or the DTI to pose an
imminent threat or danger of exploding shall be disposed of without the
necessity of serving prior notice to the owners thereof. The DOE or the DTI
shall notify the violator, owner or respondent of such fact within five (5) days
after such disposition.

CHAPTER VIII
TRANSPORT OF LPG IN CYLINDERS

SEC. 24. Transport of LPG in Cylinders. - The DOE shall, in
consultation with other concerned government agencies, issue appropriate
guidelines for the transport of LPG in cylinders. The LPG industry
participants shall not allow any vehicle used for the transport of LPG in
cylinders to enter its premises, including refilling plants, depots or

warehouses, unless such vehicle has complied with the requirements of the


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DOE for the transport of LPG in cylinders. For the transport of LPG in
cylinders to households, the LPG industry participants shall only use
vehicles that meet the requirements prescribed by the DOE, as well as those
of the Department of Transportation and Communications (DOTC), the
Department of Public Works and Highways (DPWH) and the concerned
LGUs. As proof of compliance, the certificate of road worthiness from the
Land Transportation Office (LTO) or the Land Transportation Franchising
and Regulatory Board (LTFRB) shall be presented as additional documentary
requirement for the issuance and renewal of a license to operate.

Vehicles carrying, transporting, or delivering LPG cylinders which are
not registered and without the appropriate DOE signage shall be seized or
impounded by the DOE. The guidelines for the accreditation of drivers and
attendants for LPG delivery vehicles shall be prescribed by the DOE upon
prior consultation with the LPG industry participants and other government
agencies concerned.

CHAPTER IX
PHILIPPINE LPG CYLINDER IMPROVEMENT PROGRAM

SEC. 25. Philippine LPG Cylinder Improvement. - A Philippine LPG
Cylinder Improvement Program shall be implemented with the objective of
safeguarding and ensuring the safety of consumers. The DOE shall, upon
prior consultation with the LPG industry participants and other government
agencies concerned, determine the mechanics, rules, and regulations for the
Philippine LPG Cylinder Improvement Program

CHAPTER X
PROHIBITED ACTS, FINES AND PENALTIES

SEC. 26. Engaging in Business without License to Operate. - Any
LPG industry participant who engages in business without securing a
License to Operate from the DOE as required under this Act shall be
penalized with a fine of five thousand pesos (P5,000.00) for each day of
operation without a License to Operate: Provided, That the maximum fine to
be imposed shall be five hundred thousand pesos (P500,000.00) for an
individual and one million pesos (P1,000,000.00) for a corporation.


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SEC. 27. Engaging in Business without Accreditation. - Any
person who engages in the business of manufacturing LPG cylinder seals or
of re-qualifying, repairing or scrapping LPG cylinders without first securing
a certificate of accreditation from the DTI as provided under this Act, shall
be penalized with a fine of one million pesos (P1,000,000.00).

SEC. 28. Refusal or Obstruction of Inspection. - Any LPG industry
participant who refuses, prevents or obstructs the inspection of its premises
and records as required under this Act shall be penalized with a fine of three
hundred thousand pesos (P300,000.00) for the first violation, five hundred
thousand pesos (P500,000.00) for the second violation and revocation of the
License to Operate for the third violation.

SEC. 29. Failure to Post License to Operate. - Any LPG industry
participant concerned who fails or refuses to post its License to Operate
shall be penalized with a fine of not exceeding five thousand pesos
(P5,000.00) for each instance of violation.

SEC. 30. Failure to Submit Reportorial Requirements. - Any LPG
industry participant who fails to submit periodic reports as may be required
under existing laws particularly Republic Act No. 8479, otherwise known as
"Downstream Oil Industry Deregulation Act of 1998," within a reasonable
period and in the manner prescribed by the DOE, shall be penalized with a
fine of ten thousand pesos (P10,000.00) in case of an individual and twenty
thousand pesos (P20,000.00) in case of a partnership or corporation.

SEC. 31. Illegal Storage. - Any refiner, importer, refiller, hauler,
dealer, retail outlet or bulk consumer who stores LPG in bulk without
obtaining a License to Operate or Certificate of Non-Coverage as required
under this Act shall be penalized with a fine of not less than twenty
thousand pesos (P20,000.00) but not more than one hundred thousand
pesos (P100,000.00).

SEC. 32. Failure to Comply with Product Standards. - Any
concerned LPG industry participant who, by act or omission, fails to comply
with plant or product standards set by the DOE with respect to their specific
activity shall be penalized as follows:


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(a) Non-compliance with DOE mandatory requirements on safety
designs for refilling plants, equipment, depots, centralized LPG distribution
systems and similar facilities shall be penalized with a fine of not less than
fifty thousand pesos (P50,000.00) but not more than five hundred thousand
pesos (P500,000,00). For this purpose, the DOE shall, after public
consultation, formulate a table of penalties to determine the imposition of
the minimum and the maximum penalty: Provided, That nothing in this
paragraph shall preclude the DOE from ordering the closure of the facility
until such time that the mandatory requirements have been met; and

(b) Failure to secure the required PNS Certificate for LPG cylinders
shall be penalized with a fine of five thousand pesos (P5,000.00) for each
non-compliant LPG cylinder used and distributed to consumers: Provided,
That the maximum fine to be imposed shall be five hundred thousand pesos
(P500,000.00) for an individual and one million pesos (P1,000,000.00) for a
corporation: Provided, further, That this section shall apply only after the full
implementation of the Philippine LPG Cylinder Improvement Program.

SEC. 33. Adulteration. - LPG-filled cylinders found to be mixed with
another finished or unfinished petroleum product or stock or with any non-
petroleum substance or material that will result in product quality change
or in the failure of the LPG to meet the required product specifications of the
DOE shall render the person in possession thereof prima facie liable for
violating this provision and shall be penalized with a fine of five thousand
pesos (P5,000.00) for each LPG cylinder containing adulterated LPG:
Provided, That the maximum fine to be imposed shall be five hundred
thousand pesos (P500,000.00) for an individual and one million pesos
(P1,000,000.00) for a corporation.

SEC. 34. Underfilling. - When the net quantity of LPG contained in
LPG cylinders intentionally sold, transferred, delivered or filled by refillers is
less than the LPG cylinder content required by the DOE at the filling plant,
the refiller shall be penalized with a fine of five thousand pesos (P5,000.00)
for each underfilled LPG cylinder: Provided, That the maximum fine to be
imposed shall be five hundred thousand pesos (P500,000.00) for an
individual and one million pesos (P1,000,000.00) for a corporation.


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When the net quantity of LPG in cylinders intentionally sold,
transferred, or delivered by dealers or retail outlets is at least three tenths of
one kilogram (0.30 kg) less than the DOE-required LPG cylinder content
quantity, the dealers or retail outlets shall be penalized with the same fines
mentioned earlier in this paragraph: Provided, further, That when the net
quantity of LPG cylinders sold, transferred or delivered by dealers or retail
outlets is at least five hundred (500) grams less than the DOE-required LPG
cylinder content quantity, the said cylinders shall be confiscated outright
and the refillers, dealers or retail outlets thereof shall be penalized with the
aforementioned penalties.

The following shall be considered as prima facie evidence of
underfilling:

(a) A broken, tampered, absent or removed seal; or

(b) An LPG cylinder containing less than the required LPG quantity
which is not so identified and set apart or taken out from the sales area by
dealers or retail outlets shall be presumed to be for sale.

SEC. 35. Illegal Refilling. - The following shall constitute illegal
refilling of LPG cylinders under this Act:

(a) Refilling of LPG cylinder by a person or entity other than the brand
owner thereof, unless an express permission is granted by the brand owner
for such refilling as evidenced by a written contract or similar instrument;

(b) Refilling of LPG cylinder with a brand, trademark, trade name or
registered business name other than that of the brand owner indicated on
the LPG cylinder tank, otherwise called "pirate filling" or "cross-filling";

(c) Refilling of LPG cylinder with bearing defaced, tampered or illegible
markings contrary to the mandatory labelling and stamping requirements
under this Act;

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

(c) Filling of LPG cylinder directly from LPG tank trucks without the

use of approved filling machines;


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() Refilling LPG from one LPG cylinder to another without using the
prescribed equipment;

(g) Backyard refilling of LPG cylinder other than in properly designed
LPG refilling plants;

(h) Filling LPG cylinder with products or substances other than LPG in
an effort to achieve the correct net weight;

(i) Refilling of LPG cylinders for household or commercial use by Auto-
LPG Dispensing Stations;

(j) Refilling of LPG into single-trip or tin canister or cartridge not
designed or intended for LPG or not in compliance with existing PNS or, in
the absence of a PNS, without the express consent, approval or conformity of
the DTI;

(k) Any other refilling of LPG cylinders in violation of the mandatory
requirements or prescribed standards under this Act; and

(l) Unauthorized loading of bulk LPG tanks in industrial accounts.

An LPG industry participant found guilty of illegal refilling under this
section shall be penalized with a fine of five thousand pesos (Php5,000.00)
for each illegally-filled or refilled LPG cylinder, or imprisonment of at least
six (6) months but not more than two (2) years, or both, at the discretion of
the court: Provided, That subsequent violations shall be penalized with both
fine and imprisonment: Provided, further, That the maximum fine to be
imposed shall be five hundred thousand pesos (P500,000.00) for an
individual and one million pesos (P1,000,000.00) for a corporation: Provided,
finally, That illegally refilled LPG cylinders described in sub-paragraphs (c),
(A), (2), (9, (g), (h) and (i) above shall be confiscated outright and the refillers,
dealers or retail outlets thereof shall be penalized with the aforementioned
penalties.

SEC. 36. Hoarding. - Any LPG industry participant who, before a
price increase or in times of tight supply, unduly accumulates LPG products
beyond his normal inventory levels and unreasonably limits or refuses to
dispose of, sell, or distribute LPG products to the general public, even if the
buyer or consumer has the ability to pay in cash for the LPG products, shall
be penalized with a fine of at least one hundred thousand pesos


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(P100,000.00) but not more than one million pesos (P1,000,000.00) and
imprisonment of at least six (6) months but not more than two (2) years.

The determination of said participant's usual inventory shall be
reckoned from the third (3rd) month immediately preceding the discovery of
the stocks in case said participant has been engaged in the business for at
least three (3) months. Otherwise, it shall be reckoned from the time the
participant started the business.

For purposes of this Act, it shall be considered as prima facie evidence
of hoarding when the following conditions concur:

(a) said LPG industry participant has stocks of LPG products fifty
percent (50%) higher than his inventory capacity; and

(b) said 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. 37. Unauthorized Trading of LPG Cylinders. - Any LPG
industry participant who, without the consent of the LPG brand owner,
stores or sells empty LPG cylinders in excess of those allowed by the DOE,
through LPG cylinder swapping and other similar industry practices and
exchanges, barters, sells, distributes or otherwise transfers ownership or
possession thereof to a person or entity other than the LPG brand owner
and without the authority of the LPG brand owner, shall be penalized with a
fine of five thousand pesos (P5,000.00) for each illegally-stored or sold empty
LPG cylinder: Provided, That the maximum fine to be imposed shall be five
hundred thousand pesos (P500,000.00) in case of an individual and one
million pesos (P1,000,000.00) in case of a corporation.

SEC. 38. Tampering of LPG Cylinders and Similar Acts. - Any
person who destroys, tampers, alters or modifies LPG cylinders through any
means such as, but not limited to, changing the LPG cylinder valve,
repainting and re-labelling, by any person other than the LPG cylinder
owner shall be penalized with a fine of five thousand pesos (P5,000.00) for
each tampered or altered LPG cylinder: Provided, That the maximum fine to
be imposed shall be five hundred thousand pesos (P500,000.00) for an
individual and one million pesos (P1,000,000.00) for a corporation.


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SEC. 39. Illegal Possession of LPG Cylinder Seal. - Any person
found in possession of LPG cylinder seals, including the seals already used
in the LPG cylinders without authority from the LPG cylinder owner or its
authorized refiller shall be penalized with a fine of five thousand pesos
(P5,000.00) for each LPG seal found in its or his possession: Provided, That
the maximum fine to be imposed shall be five hundred thousand pesos
(P500,000.00) for an individual and one million pesos (P1,000,000.00) for a
corporation.

SEC. 40. Failure to Comply with Weighing Device Requirements. —
Any refiner, importer, refiller, dealer or retail outlet who fails to comply with
the requirements pertaining to weighing devices as required by the DOE and
DTI, shall be penalized with a fine of ten thousand pesos (P10,000.00) in
case of an individual or twenty thousand pesos (P20,000.00) in case of a
corporation.

SEC. 41. Overloading. - Any hauler who loads and transports or
permits the loading and transportation of LPG cylinders in quantities greater
than the rated capacity of the vehicle or in such a manner that endangers
the life and safety of its passengers or the public, shall be penalized with a
fine of twenty thousand pesos (P20,000.00) in case of an individual and fifty
thousand pesos (P50,000.00) in case of a corporation: Provided, That the
penalties provided herein shall be without prejudice to its liability under
other laws for any damage or injury to person or property.

SEC. 42. Importation of Used or Second-Hand LPG Cylinders. -
Any person who imports used or second-hand LPG cylinders or containers,
without securing authority to import from the DTI, shall be penalized with a
fine of one hundred thousand pesos (P100,000.00) or five thousand pesos
(P5,000.00) per LPG cylinder or container whichever is higher and
imprisonment of at least six (6) months and one (1) day to two (2) years.

SEC. 43. Sale or Distribution to Non-complying Persons or
Entities. - Any LPG industry participant who knowingly sells or distributes
LPG products, LPG cylinders or LPG seals to persons or entities committing
any of the prohibited acts provided in this Act and in such other issuances
or orders to be issued by the DOE or the DTI as the case may be, shall be


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penalized for each sale or distribution with a fine of not less than one
hundred thousand pesos (P100,000.00) but not more than five hundred
thousand pesos (P500,000.00).

SEC. 44. Pilferage of LPG. - Any person who pilfers LPG shall be
penalized with a fine of five hundred thousand pesos (P500,000.00) for an
individual and one million pesos (P1,000,000.00) for a corporation: Provided,
That subsequent violations shall be penalized with both fine and
imprisonment: Provided, further, That the maximum fine to be imposed shall
be five hundred thousand pesos (P500,000.00) for an individual and one
million pesos (P1,000,000.00) for a corporation.

SEC. 45. Sale or Distribution of LPG-filled Cylinders Without
Seals. — Any person, brand owner, its authorized refiller, dealer or retail
outlet who sells or distributes LPG-filled cylinders without seal, with
tampered, fake or broken seals, or with seal not belonging to the brand
owner shall be penalized with a fine of not less than five thousand pesos
(P5,000.00) for each LPG cylinder: Provided, That the maximum fine to be
imposed shall be five hundred thousand pesos (P500,000.00) for an
individual and one million pesos (P1,000,000.00) for a partnership or
corporation.

SEC. 46. Refusal to Refund the Deposit. - Any LPG brand owner, its
authorized dealer or retail outlet that refuses to refund the deposit on the
LPG cylinder to any consumer shall be administratively charged and upon
proper proof, shall be imposed a fine of one thousand five hundred pesos
(P1,500.00) for each LPG cylinder and a warning that its License to Operate
shall be suspended or revoked: Provided, That subsequent violations thereof
shall be imposed a fine of five thousand pesos (P5,000.00) per LPG cylinder
and the suspension and revocation of its License to Operate.

SEC. 47. Sale of LPG in Canisters or Cartridges. - It shall be
unlawful for any person to refill, sell, trade, or distribute LPG in single-trip
tin canister or cartridge that is intended or labeled as for one time use only,
not designed or intended for LPG, not in compliance with existing PNS or in
the absence of PNS, without the express consent, approval or conformity of
the DTI.


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Any person who sells or distributes LPG in single-trip (non-refillable)
canisters or cartridges which has been previously filled with butane and not
designed or intended for refilling of LPG due to non-compliance with the PNS
or not certified or allowed by the DTI shall be penalized with a fine of not
less than five thousand pesos (Php5,000.00) for each LPG canister or
cartridge: Provided, That the maximum fine to be imposed shall be five
hundred thousand pesos (Php500,000.00) for an individual and one million
pesos (Php1,000,000.00) for a partnership or corporation.

SEC. 48. Other Prohibited Acts. - The following acts shall likewise be
prohibited:

(a) Sale, refill and distribution to or transactions with an LPG industry
participant who has no license to operate;

(b) Manufacture, sale, or distribution of LPG cylinders to the local
market without the necessary Philippine Standard (PS) marks and other
markings as required by the PNS and its future amendments, or the detailed
standard governing LPG cylinder manufacture, requalification, and repair;

(c) Sale and distribution of LPG cylinders considered substandard as
defined by the PNS;

(d) Manufacture or sale of LPG cylinders carrying a brand name, logo,
mark, or distinction without the express approval of the registered brand
owner;

(e) Manufacture of LPG cylinders using substandard or non-industrial
steel plates;

() Wrong or misleading information stamped on the LPG cylinder such
as the tare weight; and

(2) Knowingly selling illegally-filled or refilled LPG cylinders by
marketers, dealers or retail outlets.

A fine of at least five hundred thousand pesos (Php500,000.00) but
not more than one million pesos (Php1,000,000.00) shall be imposed on any
person, firm, partnership or corporation found guilty of committing any of
the foregoing prohibited acts.


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SEC. 49. Share of LGUs on Fines and Penalties. - The LGU
concerned shall be allotted a forty percent (40%) share of the proceeds from
fines and penalties collected by the DOE: Provided, That the remaining sixty
percent (60%) shall be remitted by the DOE to the National Treasury.

SEC. 50. "Strike Three" Penalty. — Any person convicted or found
administratively liable with finality of violating the provisions of this Act for
three (3) instances shall be perpetually disqualified from engaging in any
activity in the LPG industry.

SEC. 51. Publication of Persons Convicted of Violations of this
Act, — The DOE shall, on a quarterly basis, publish in a newspaper of
general circulation, the names of LPG industry participants found liable for
prohibited acts under this Act.

SEC. 52. 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
previously found in violation of the prohibited acts under this Act shall not
be eligible for any license to operate by the DOE. If the offender is an alien,
he shall be deported immediately, without further proceedings, after service
of sentence.

SEC. 53. Imposition of Minimum and Maximum Penalty for
Administrative Actions. - The DOE shall, after public consultation,
formulate a table of penalties to determine the minimum and maximum
penalty which shall be imposed for each prohibited act provided in this Act:
Provided: That the penalty shall be within the minimum and maximum
range provided for each prohibited act stated in this Act, and taking into
consideration the classification of the offender either as a retail outlet,
dealer, marketer, refiner, refiller, hauler, importer or hoarder, and the
number of times or instances such prohibited act is committed by the
offender: Provided, further, That nothing herein 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 as directed by the DOE have been met.


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SEC. 54. Initiation of Administrative Action by the DOE. - In
compliance with due process requirements, an administrative action shall
be initiated by the DOE through the issuance of a show cause notice to the
offender giving the latter the opportunity to submit within a period to be
prescribed by the DOE his written explanation on the circumstances or
reasons behind the violation. The DOE shall have the discretion to conduct
a hearing pertaining to the violation, or impose outright the appropriate
penalty based on the merits of the written explanation.

SEC. 55. Initiation of Criminal Action. - A criminal action may be
initiated against any person who commits any of the prohibited acts
described herein and who shall be imposed, upon conviction, with a fine
within the minimum and maximum range prescribed for the prohibited act
provided in this Act, or with imprisonment of at least six (6) months but not
more than two (2) years, or both, at the discretion of the court.

CHAPTER XI
EDUCATION AND RESEARCH

SEC. 56. Usage Requirements for Customers and End-Users. - The
DOE and the DTI shall jointly undertake educational and information
dissemination activities to enhance customer awareness among LPG
consumers and end-users. The DOE and the DTI, after consultation with the
LPG industry participants, may prescribe rules and regulations in relation to
the following:

(a) For industrial or large end-users, installation of sign at storage
facilities;

(b) Use of only branded, legally-filled and certified LPG cylinders; and

(c) Installation of LPG appliances and devices approved by the DTI
Provided, That such appliances and devices shall be installed only by
qualified servicemen as provided in this Act.

SEC. 57. Development Research. - The DOE shall, in coordination
with the Department of Science and Technology (DOST) and the DTI,
conduct study and research for the purpose of developing more efficient
methods of providing safe, clean and hazard-free LPG to consumers.


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CHAPTER XII
FINAL PROVISIONS

SEC. 58. Implementing Rules and Regulations. — Unless otherwise
expressly provided in this Act, the DOE shall, in consultation with the DTI,
other appropriate agencies, and the LPG industry participants, be the lead
agency to formulate, issue and promulgate the necessary implementing
rules and regulations within sixty (60) days from the effectivity of this Act
The implementing rules and regulations shall cover, among others,
guidelines and standards for LPG weighing devices, cylinder sealing, labeling
requirements, quality standards, delivery vehicles, drivers, and attendants,
and the Philippine LPG Cylinder Improvement Program.

SEC. 59. Transition Phase. - 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 period for the transition phase to allow
for compliance by all LPG industry participants with the objectives of this
Act.

SEC. 60. Appropriations. - The amount of two billion pesos
(P2,000,000,000.00) annually for the first five (5) years of the
implementation of this Act is hereby appropriated out of the Malampaya
Fund being administered by the DOE. Thereafter, the same shall be
included in the regular budget of the DOE in such amounts as may be
necessary to fully implement the Philippine LPG Cylinder Improvement
Program. Appropriations herein shall be utilized by the DOE only for the
purpose of providing financial support and assistance to fund the
implementation of the Philippine LPG Cylinder Improvement Program and
shall in no way unduly burden, financially or otherwise, any LPG industry
participant and/or consumer. Not more than ten percent (10%) of the
amount herein appropriated shall be used for administrative costs in
implementing the Philippine LPG Cylinder Improvement Program.

SEC. 61. Joint Congressional Oversight Committee. - There is
hereby created a Joint Congressional Oversight Committee to monitor the

implementation of this Act. The committee shall be composed of three (3)


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senators and three (3) representatives to be appointed by the Senate
President and the Speaker of the House of Representatives, respectively. The
oversight committee shall be jointly chaired by the Chairpersons of the
Senate Committees on Energy and Trade and Commerce and the House
Committees on Energy and Trade and Industry: Provided, That the Minority
in both the Senate and the House of Representatives shall be equitably
represented therein: Provided, further, That the Oversight Committee shall

exist for a period of years from the effectivity of this Act.

The mandate given to the Joint Congressional Oversight Committee
under this Act shall be without prejudice to the performance of the duties
and functions by the respective existing oversight committees of the Senate
and the House of Representatives.

SEC. 62. Construction and Interpretation. - Any doubt in the
interpretation of any provision in this Act shall be interpreted in favor of the
interest of the consumers particularly to ensure access to reasonably-priced
LPG and the safety of the consumers and the general public.

SEC. 63. 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. 64. Repealing Clause. - All laws, decrees, executive orders,
proclamations and administrative regulations, or parts thereof inconsistent
herewith are hereby repealed or modified accordingly.

SEC. 62. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved,

HON. ARNEL U. TY