HOUSE OF REPRESENTA‘
RECEIVED |
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Republic of the Philippines pate: 30 JUN 2015

HOUSE OF REPRESENTATIVES aie [232
CONGRESS OF THE PHILIPPINES ;
Quezon City, Metro Manila BY!
INT i
SEVENTEENTH CONGRESS peas pan wh i
First Regular Session BILLS AND INI
House Bill No...) 27

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

Based on studies Mctro Manila’s air pollution problem is caused
primarily by vehicular emissions, mostly coming from diesel engines. While
so much attention has been given to lack of engine maintenance as the

culprit, the role of fuel quality has escaped the scrutiny of regulators and
policy makers.

The unwitting use of institutionally adulterated diesel (IAD) in
transport vehicles, particularly buses, trucks and jeepneys, are the primary
and major cause of smoke belching.

Under Section 1(B) of Presidential Decree 1865, adulteration of
furnished petroleum products, or possession of adulterated finished
petroleum products for the purpose of sale, distribution, transportation,
exchange or barter is a prohibited act.

This bill seeks to increase the penalties for prohibited acts stated in
Presidential Decree 1865 to ensure that the policy of state is strictly
observed.

In view thereof, early consideration and approval of this bill is
earnestly sought.

-YNALDO V. UMALI
Representative
Second District, Province of Oriental Mindoro


Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.~ 2?

Introduced by Honorable REYNALDO V. UMALI

AN ACT AMENDING SECTIONS 3-A AND 4 OF THE PRESIDENTIAL
DECREE NO. 1865 TO INCREASE THE PENALTIES FOR PROHIBITED
ACTS SUCH AS ADULTERATION OF PETROLEUM PRODUCTS WHICH IS
INIMICAL TO PUBLIC INTEREST

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

SECTION 1. Short Title. This Act shall be known as “Oil Anti-Adulteration
Act of 2016.”

SECTION 2. Declaration of Policy. - It is hereby declared to be the policy of
the State to promote and protect the right of the people to public health and
safety and instill health consciousness among them. Towards this end, the
State shall adopt and implement a policy mandating the importation,
production, distribution, marketing and sale of environmentally clean and
safe fuels to promote the general welfare and public interest.

SECTION 3. Section 3-A of Batas Pambansa Bilang 33, as amended by
Presidential Decree 1865, is hereby amended to read as follows:

“SECTION 3-A. Rules and Regulations; Administrative Sanctions for
Violation Thereof. The [Bureau of Energy Utilization] Department of
Energy shall issue such Rules and Regulations as are necessary to carry
into effect the provisions of this Act, subject to the approval of the [Minister]
Secretary of Energy, after consultation with the affected industry sectors.
Said Rules and Regulations shall take effect Fifteen (15) days from the date
of its publication in two (2) newspapers of general circulation.

“The [Bureau of Energy Utilization] Department of Energy is empowered to
impose in an administrative proceeding, after due notice and hearing, upon
any person who violates any provisions of such rules and regulations, a fine
of not more [Ten Thousand Pesos (P10,000.00)] One Hundred Thousand


Pesos (P100,000) or to suspend or remove the license or permit of [a] AN
OIL IMPORTER, REFINER, hauler, marketer, refiller, dealer, sub-dealer, or
retail outlet: Provided, further, that during the pendency of such
administrative proceedings, the Department may suspend business
operations of such hauler, marketer, refiller, dealer, sub-dealer, or retail
outlet: Provided, that hearing in any administrative proceeding may be
waived by respondent: Provided, further, that during the pendency of such
administrative proceedings, the [Bureau] DEPARTMENT may suspend the
business operations of such OIL IMPORTER, REFINER, hauler, marketer,
refiller, dealer, sub-dealer, or retail outlet operator when the suspension is
consistent with public interest. Administrative proceedings shall be decided
within THIRTY (30) DAYS after filing of the last responsive pleading by the
respondent, or termination and completion of the administrative
proceedings.

“All law enforcement and other concerned agencies of the government shall
assist the [The Bureau of Energy Utilization] Department of Energy in the
implementation of this section.

“The administrative sanction that may be imposed shall be without
prejudice to the filing of a criminal action as the case may warrant.

SECTION 4. Section 4 of the same Act, as amended by Presidential Decree
1865 is hereby amended to read as follows:

“SEC. 4. Penalties.- Any person who commits any act herein prohibited
shall, upon conviction, be punished with a fine of not less than [Twenty
Thousand Pesos (P20,000.00)| THREE HUNDRED THOUSAND PESOS
{P300,000) but not more than { Fifty Thousand Pesos (P50,000.00)] FIVE
HUNDRED THOUSAND PESOS (P500,000), or imprisonment of at least
[Two (2)] THREE (3) YEARS but not more than | Five (5)] SIX (6) years, or
both, in the discretion of the court. In cases of second and subsequent
conviction under this Act, The Penalty shall be both fine and imprisonment
as provided herein. Furthermore, the petroleum and/or petroleum products,
subject matter of the illegal trading, adulteration, shortselling, hoarding,
overpricing ot misuse, shall be forfeited in favor of the Government:
Provided, That if the petroleum and/or petroleum products have already
been delivered and paid for, the offended party shall be indemnified twice
the amount paid, and if the seller who has not yet delivered has been fully
paid, the price received shall be returned to the buyer with an additional
amount equivalent to such price; and in the addition, if the offender is an
oil company, OIL IMPORTER, OIL REFINER, marketer, distributor, refiller,
dealer, sub-dealer and other retail outlets, or hauler, the cancellation of his
license.



SECTION 5. Repealing Clause. — All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
amended accordingly.

SECTION 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) national newspapers of
general circulation.

Approved.